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Dutch probe Spanish van with gas canisters after terror tip

ROTTERDAM — Dutch police are investigating possible terror links after arresting a Spaniard driving a van containing gas canisters close to a rock concert which was abruptly canceled over fears of an attack.

The man “was arrested and taken to the police station,” Rotterdam police said in a Tweet late Wednesday, following a tip-off from Spanish authorities.

The arrest came little under a week after twin vehicle attacks in Spain killed 15 people, which were claimed by the Islamic State group.

Dutch bomb squad officials “were investigating the van” which was found just two streets away from the Maassilo concert hall where an American rock band were due to play, they added.

Earlier in the evening Dutch authorities decided to cancel the concert by Californian group Allah-Las in Europe’s largest port city after a tip-off from Spanish police around 5:30 p.m. (1530 GMT) about a possible terror attack.

“In the early evening I was warned by telephone that we had received a threat which had implications for an American concert at the Maassilo in Rotterdam,” the city’s mayor, Ahmed Aboutaleb, told a hastily-called press conference.

“This signal came from the Spanish police to the Dutch police,” he added.

But Mr. Aboutaleb, the country’s first Muslim and immigrant-born mayor who has spoken out against Islamic terror groups, added an investigation was under way and “we cannot say now if the van with the canisters was linked to the threat.”

The four-piece band, from Los Angeles, had been escorted from the concert hall by police wearing bullet-proof vests.

In a statement sent to AFP, they said they were “unharmed and are very grateful to the Rotterdam police and other responsible agencies for detecting the potential threat before anyone was hurt.”

Rotterdam police said that afterwards an officer “stationed close to the venue decided to stop a van that he saw driving at around 21:30 hrs.”

“The van had Spanish plates and was driven by a Spanish national. Inside the van were a couple of gas bottles. Whether there is a link with the terror threat is being looked into,” the statement in English said, adding “the driver was taken into custody.”

The international connections of the cell of mostly Moroccan nationals behind the Spanish attacks are being probed as investigators retrace their movements to France and Belgium.

Spanish police carried out new raids overnight Tuesday to Wednesday after vehicles ploughed into pedestrians on Barcelona’s busy Las Ramblas boulevard and a seaside promenade in the resort town of Cambrils.

Fifteen people were killed and more than 120 others were wounded.

Spanish court documents have shown that at least 500 liters of acetone, large quantities of nails and detonators as well as gas canisters were found in raids on a house in the town of Alcanar, south of Barcelona.

The Rotterdam building where Wednesday’s concert was to be held, which can hold about 1,000 people, was searched by the Dutch anti-terror squad after the crowd had been evacuated. — AFP

Perlas Pilipinas rally falls short in tough loss to Malaysia

By Michael Angelo S. Murillo
Reporter

PERLAS Pilipinas, the Philippine national women’s basketball team, was dealt a telling blow in its bid in the 29th Southeast Asian Games yesterday after it bowed to host Malaysia, 60-56, that had a lot of repercussions in the team’s quest for gold.

Perlas Pilipinas rally falls short in tough loss to Malaysia
Perlas Pilipinas absorbed a telling blow to its 2017 SEA Games campaign yesterday at the hands of host Malaysia, 60-56. — FIBA.COM

Less than 24 hours after their spirited fight back and victory over Thailand, 67-65, on Wednesday night, the Filipina ballers were back on the court to gallantly take on the Malaysian team in front of the latter’s home town crowd at the MABA Stadium, but their efforts fell short and along with it their chances of winning a gold medal in the biennial regional sporting meet.

Perlas Pilipinas fought side by side with the Malaysians early in the contest but a late charge by the hosts in the second period allowed them to take an 11-point cushion, 34-23, by the halftime break.

The Malaysians picked up from their strong closing in the second canto to start the third period, extending their lead by as much as 16 points, 43-27, with six minutes remaining in the quarter.

But the Philippines would make its move thereafter to cut its deficit to single digits at the end of the third quarter, 47-38.

Perlas Pilipinas, with its campaign on the line, rallied back in the fourth period, led by Allana Lim and Aracelie Abaca.

The team managed to tie the knot at 54-all with 4:36 left in the game.

Malaysia, however, would score the next four points to give itself breathing room, 58-54, with less than a minute to go.

Ms. Lim scored on a layup to slice Malaysia’s lead to two points with 12 ticks remaining but that was the closest they could get as two converted free throws by the hosts sealed the win.

Far Eastern University standout Lim top-scored for Perlas Pilipinas with 17 points while Analyn Almazan and Afril Bernardino added 11 and seven points, respectively.

Malaysia, for its part, was led by Chong Yin Yin with 12 points.

With the loss, the Philippines dropped to 3-2 in five games, good for fourth place at this point of the competition with chances of winning gold very little if at all with one game left in its schedule.

Malaysia continues to lead the standings at 4-0, followed by Indonesia at 3-1.

In SEA Games women’s basketball, the team with the most wins at the end of the single round-robin tournament wins the gold.

Senate proposes sugar-content tiers for TRAIN beverage tax

THE SENATE committee on ways and means is eyeing a multi-tiered excise tax based on sugar content, but capped at P5 per liter instead of the Finance department’s volume-based P10 per liter.

During the Senate hearing on the sugar-sweetened beverage tax measure under the Tax Reform for Acceleration and Inclusion (TRAIN) yesterday, Senator Juan Edgardo M. Angara floated the idea of the multi-tiered tax pegged on a beverage’s sugar levels to make the tax more targeted.

The TRAIN proposal imposes a flat rate of P10 per liter on sugar-sweetened beverages regardless of the sugar content.

“It does not distinguish between beverages (with varying sugar content). So it’s a bit blunt if it’s not targeted to those sweetened ones. We might look into the possibility of specifying sugar levels, to distinguish between sweeter beverages and those which are not so sweet,” said Mr. Angara, who chairs the ways and means committee.

“We want to get the consensus where the levels will be set, but for the senators, they’re okay with three tiers, as long as the maximum level does not exceed P5 per liter,” said Mr. Angara.

He said that this approach would incentivize beverage manufacturers to lower their sugar content, “so you can reward those who put less sugar in their beverages.”

Federation of Philippine Industries President Jesus L. Arranza however said that the multi-tiered proposal may be anti-competitive.

For its part, the Department of Finance (DoF) said that it will let the Department of Health (DoH) decide on the taxation structure of sugar-sweetened beverages, as the program is primarily intended as a health measure.

“I will defer to the DoH,” Finance Undersecretary Karl Kendrick T. Chua told reporters yesterday on the sidelines of the hearing.

“[The proposals] have pros and cons. It now depends on which one will deliver the best health impact because its really a health measure… so we will meet that objective before the revenue,” he said.

The Finance department’s volume-based flat P10 rate is more attractive from a fiscal perspective as it is easier to administer.

DoH Undersecretary Mario C. Villaverde however backed the original Finance department proposal, but said he is open to studying the health benefits of the multi-tiered system.

“Our position is to support  the house bill version… It’s much simpler, easier to enforce and administer because of the simplicity of the mechanism,” he said.

Mr. Villaverde also defended the P10 proposal to burden the rich more rather than the poor, as they consume bulk of the sugar-sweetened beverages.

As for the proposed P5 cap, Mr. Villaverde said that it would not be enough to discourage consumers to shift away from sugar-sweetened beverages.

“Generally it should be around 20% additional tax. P5 is only around 10%.”

Industry representatives also proposed before the committee to include non-caloric and artificial sweeteners, but this approach has yet to be studied by the panel.

However Mr. Villaverde noted that artificial sweeteners have no direct link to the development of diabetes.

“Its effect is more on the taste buds. People get a taste for sweets and crave sweetened food and beverages and that means craving more sugar. That’s the downside of it,” he said.

“The consumption of the rich is already high. So the growth of consumption will only be marginal because they are the number one consumers. But among the poor, their consumption is increasing, and we would want to prevent them from consuming more. So the additional tax would become preventive, before their consumption increases,” added Mr. Villaverde.

As for the effect on the beverage manufacturers, audit firm KPMG R.G. Manabat & Co. reported that businesses will take between 6.1 years to 15.8 years to recoup their forgone revenue from the imposition of the sugar-sweetened beverage tax.

It also said that an average small store will lose about P300 in daily revenue, noting that 40% of store sales are from such beverages. — Elijah Joseph C. Tubayan

Wage hikes in China bring some jobs and factories back to Japan

WHILE there is no end in sight to off-shoring by Japanese companies, signs are emerging that surging wages in China are encouraging at least some of them to bring jobs, factories and businesses back home.

This photo taken on August 7, 2017 shows employees working in a textile factory in Linyi in China’s eastern Shandong province.
Chinese trade growth slowed significantly in July compared to the previous month, official data showed on August 8, coming in well below expectations after months of steady momentum. — AFP 

According to an annual survey of about 3,000 firms by the Japan External Trade Organization, among those that had recently moved or planned to move operations across national borders, 8.5% came back to Japan from China. In the first reversal since Jetro began asking the question in 2006, there were fewer cases — just 6.8% — going to China from Japan, according to poll released in March.

“The biggest reason is rising wages in China, which is sending businesses to Southeast Asian nations like Vietnam, as well as back to Japan,” said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance Co. in Tokyo. “This supports capital investment in Japan.”

On top of the narrowing pay gap, the depreciation in the yen due to record monetary easing by the Bank of Japan is encouraging more companies to make things at home and export, said Yuji Shimanaka, an economist at Mitsubishi UFJ Morgan Stanley Securities Co. The yen has weakened about 15% against the Chinese yuan since the start of 2013.

Jobs returning home adds to positive signs in the Japanese economy, which is in the middle of its longest period of expansion in more than a decade.

But the bigger picture is still one of Japanese companies moving or expanding production overseas as they seek cheap labor and growth markets, neither of which are available in aging Japan.

A record proportion of the goods made by Japan’s manufacturers were produced outside Japan in the first three months of this year.

“Companies continue to target places where they can find demand,” said Kodama.

ASEAN, with its young and growing population, and expanding economies, has emerged as a favored destination for Japanese companies. Bloomberg

Competition law and the issue of relevant markets

The transitory period set by the Philippine Competition Commission ended last Aug. 8. From thereon, as stated in the PCC’s Facebook account: “an existing business structure, conduct, practice, or any act that may be in violation of the PCA shall be subject to the administrative, civil, and criminal penalties.”

The “PCA” is the Philippine Competition Act (or RA 10667), which seeks to “penalize all forms of anti-competitive agreements, abuse of dominant position and anti-competitive mergers and acquisitions, with the objective of protecting consumer welfare and advancing domestic and international trade and economic development.”

One of the trickier provisions has to do with “abuse of dominant position,” which — according to the law — may constitute:

• selling goods or services below cost with the object of driving competition out of the relevant market;

• imposing barriers to entry an anti-competitive manner;

• making a transaction subject to acceptance by the other parties of other obligations which have no connection with the transaction;

• setting prices or other terms or conditions that discriminate unreasonably between customers or sellers of the same goods or services;

• imposing restrictions that prevent, restrict or lessen competition substantially;

• making supply of particular goods or services dependent upon the purchase of other goods or services from the supplier which have no direct connection with the main goods or services to be supplied;

• directly or indirectly imposing unfairly low purchase prices for the goods or services of, among others, marginalized agricultural producers, fisherfolk, micro/small/medium-scale enterprises, and other marginalized service providers and producers;

• directly or indirectly imposing unfair purchase or selling price on their competitors, customers, suppliers or consumers; and,

• limiting production, markets or technical development to the prejudice of consumers.

Tricky due to the nature of proving a subjective thing as “abuse,” as well as the various condition-setting provisos that modify the primary clauses of the law.

Tricky also at a fundamental level because of the Constitution, which provides that monopolies are not to be regulated or prohibited unless “the public interest so requires” (another subjective provision) and qualified by the fact that in the very same Article the State is mandated to “pursue a trade policy that serves the general welfare and utilizes all forms and arrangements of exchange.”

This means that the Philippine economy operates both at the domestic and international (bilateral, multilateral, regional, and global) levels.

And when we say “Philippine economy,” we mean private businesses as the government does not generate income nor should it engage in commercial enterprises.

For a successful private business, therefore, two questions come: at what point does its competitive instincts are said to be constituting “abuse of dominant position” and when it is said to be “dominant,” then dominant where?

Which leads to looking for pertinent definitions of “market.”

The “relevant market,” as defined by the PCA, is that which “refers to the market in which a particular good or service is sold and which is a combination of the relevant product market and the relevant geographic market.”

In turn, a “relevant product market comprises all those goods and/or services which are regarded as interchangeable or substitutable by the consumer or the customer”; while the “relevant geographic market comprises the area in which the entity concerned is involved in the supply and demand of goods and services, in which the conditions of competition are sufficiently homogenous and which can be distinguished from neighboring areas because the conditions of competition are different in those areas.”

But in an economy where foreign trade (exports) are a necessity, with the Philippine government keen in maintaining its bilateral and multilateral trade agreements, should the relevant market include those external to the boundaries of the country?

This is interesting because the PCA itself asserts it is “applicable to international trade having direct, substantial, and reasonably foreseeable effects in trade, industry, or commerce” in the country, “including those that result from acts done outside the Republic of the Philippines.”

The point is that “globalization of markets and production structures make it increasingly difficult to define antitrust markets to identify possible dominant positions. With FDI becoming more important than trade in terms of servicing foreign markets, markets are becoming increasingly globalized and national production systems more and more integrated through the activities of transnational corporations (L. Sleuwaegen and I. De Voldere, 2001).”

And, as can be seen above, our regulations focus mainly in identifying the market by way of demand substitution. But, again Sleuwaegen and De Voldere point out, “the process of globalization involves essentially global supply conditions and competition, and makes the interactions between global competitors a crucial element in defining the relevant market.”

It would be interesting to see how the Philippine Competition Commission navigates this complexity: promoting and encouraging newer players domestically while allowing domestic and Filipino-owned corporations the power and ability to compete on a regional and global scale, and producing world class products and services.

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and of Counsel for the Policarpio and Acorda Law Office.

jemygatdula@yahoo.com

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From plumber to MMA superstar, Conor McGregor taps into fame

LAS VEGAS — In the space of four short years, Conor McGregor has grown accustomed to the trappings of luxury that have accompanied his rise through the ranks of mixed martial arts.

From plumber to MMA superstar, Conor McGregor taps into fame
Conor McGregor — REUTERS

But the 29-year-old multi-millionaire Irishman, who faces Floyd Mayweather in a cross-combat superfight on Saturday, insists he has never forgotten his humble beginnings.

Until he was discovered and signed by the Ultimate Fighting Championship (UFC) in 2013, McGregor was eking out a hand-to-mouth existence.

The former apprentice plumber was on the dole as he attempted to make a name for himself on the Irish mixed martial arts circuit.

“It’s mind-blowing. But I never forget the struggles. I never forget where I came from. I never ever forget the hard times,” McGregor says.

“When things were really bad I didn’t have a pot to piss in. Really, nothing. I’m not a stupid guy and it was hard standing in a dole queue.”

McGregor’s life now, as he contemplates Saturday’s bout with Mayweather, could not be more different.

Private jets, tailor-made suits and multi-million-dollar purses feature regularly in his life.

He owns a luxury yacht which he christened “The 188” — a reference to the amount of his €188 ($222) weekly benefits cheque before his career took off.

“I pinch myself because I am surrounded by luxury. But make no mistake — it’s luxury built on sacrifice,” McGregor explained.

Initially, McGregor’s family had attempted to steer him away from fighting, encouraging him to work as a plumber’s apprentice during his teens.

“I hated every minute of it,” McGregor recalled. “You were talking 14 or 15-hour days. I was getting ordered around, getting people their lunch, all this crap. I just thought, ‘This life isn’t for me, I’m going to pack it in. I’m going to chase my dreams.’”

COMBAT IS MY LIFE
A mixed early start to his career in Ireland was followed by an eight-fight winning streak between 2011 and 2012.

In 2013, UFC chief Dana White signed him to a multi-fight contract and the world’s dominant mixed martial arts circuit had its next star.

McGregor’s explosive punching and ability to market himself, backing up his brash, cocksure press conference persona inside the octagon quickly endeared him to the sport’s fans.

A serene start to his UFC career culminated with McGregor winning back-to-back titles, defeating Chad Mendes by knockout in July 2015 before a 13-second demolition of Jose Aldo five months later.

An upset defeat to Nate Diaz in early 2016 was followed by a decision that stunned the MMA world soon afterwards — McGregor declaring his apparent retirement from the sport.

The announcement, however, was widely seen as a negotiating gambit, with McGregor increasingly reluctant to fulfil his contractual obligations to promote each fight.

“I am paid to fight. I am not yet paid to promote. I have become lost in the game of promotion and forgot about the art of fighting,” McGregor said.

“There comes a time when you need to stop handing out flyers and get back to the damn shop.”

He was back in the shop later in 2016, avenging his loss to Diaz with a win by decision in August before knocking out Eddie Alvarez to win the lightweight title three months later.

While safely back in the UFC fold, though, McGregor remained determined to try and land his ultimate prize — a showdown with Mayweather.

Ever since the fight was announced in June, few commentators have given McGregor a chance.

The Irishman has never fought a boxing contest before, and will be facing an opponent who will be aiming for a 50th straight career victory.

McGregor, who has vowed to knock out Mayweather inside two rounds, is unfazed by his underdog status.

“I’m borderline insane,” McGregor said. “I don’t know about anything else and don’t care about anything else. Combat is my life.” — AFP

Soldier mistaken for gunman shot dead in Zambo

A SOLDIER in civilian clothes who came from combat in Marawi City was gunned down Wednesday by responding police team after he was mistaken to be a gunman in Aurora town, Zamboanga del Sur. Police identified the victim as Cpl. Rodillo Torres Bartolome, 33, married, a resident of Barangay Kanipay, Midsalip town, Zamboanga Del Sur and a member of the Philippine Army assigned at the 53rd Infantry Battalion. He was deployed in Marawi City to battle the Islamic State-inspired Maute Group. — philstar.com

See full story on https://goo.gl/yYnRbJ

Rolls-Royce is the hottest brand shout-out in pop music lyrics

“PARK THE BENZ, just to ride the Wraith,” Quavo raps in Drake’s song “Portland,” which peaked at No. 9 on the charts this year. That Wraith he’s so thrilled about is a $300,000 automobile made by Rolls-Royce Motor Cars Ltd., which has quietly become the king of pop-culture music references, appearing in more top songs than any other brand.

Not Mercedes-Benz, not Ferrari, not even Lamborghini. Rolls reigns.

Particularly with the ascension of hip-hop, brand references became a shorthand for aspiration and status. As such, they’re also a good barometer for your brand’s cool factor, or its imminent dilution, depending on your marketing strategy. Bloomberg analyzed tracks that made it into the top 20 spots of Billboard’s Hot 100 over the past three years and found that eight of the 12 most popular product mentions have four wheels.

Rolls-Royce tops the list, featured in 11 different tunes by such artists as Future, The Weeknd, and Kodak Black. Ferrari is a close second. Chevrolet, Lamborghini, Bentley, Cadillac, Mercedes-Benz, and Porsche each get touts in several songs. Among non-car shout-outs, old standbys Hennessy cognac and Nike’s Air Jordan sneaker label got the most. We also found that it’s not just alcohol, guns, clothing, and super luxury making it into songs anymore – software, cookware, and even Band-Aids are making the grade.

As far as the song including the most name-checks, the crown goes to “Bad and Boujee” by hip-hop group Migos, which climbed all the way to the No. 1 spot on the charts early this year. It includes 19 brand mentions, from Instagram and Klout to Segway scooters and, um, Crock-Pot slow cookers. Car references are sprinkled throughout the song, too. They rap about a “lamb” and a “frog,” nods to Lamborghini and Porsche. There’s also a reference to the Ferrari 458 Spider, a drop-top convertible that costs more than a quarter-million dollars. The Rolls-Royce Ghost gets some attention as well.

Across the 280 songs we reviewed, 212 brands are highlighted. Cars, fashion, television, and movies make the most appearances, followed by technology, alcohol, music, and drugs. Many are prestige items like Rolex watches or Gucci jackets. Others are less glamorous brands, such as Kit Kat candy bars, Grey Poupon (thank you, Kendrick Lamar), and 7-Eleven convenience stores. Drug brands range from Rolaids to Xanax. The universe of dropped names is huge: Everything from Barbie dolls to Glock pistols, Trojan condoms to A1 steak sauce.

Most references come from hip-hop tracks or a rapper who sings a few verses in a pop song. But not all: Taylor Swift, for instance, has brand mentions in her hits, such as Band-Aid bandages in “Bad Blood” and Polaroid cameras in “Out of the Woods.” Katy Perry includes Dom Perignon in “Birthday.” Meghan Trainor even managed to squeeze a reference to software – in this case, Adobe Photoshop – into her chart topper “All About That Bass.”

The obvious question when musicians mention obscure brands is, are they getting paid? Sometimes they do. As with television shows and feature films, brands like to insert themselves into pop culture, and music is no different. Dozens of music videos show off stuff from Beats, the Jimmy Iovine/Dr. Dre headphones brand owned by Apple, Inc. The item appears in several of Lady Gaga’s music videos, from her breakout hit “Just Dance” to “Poker Face” and “Telephone.” Beats Pill speakers, meanwhile, are clearly visible in videos from Britney Spears, Miley Cyrus, and Nicki Minaj.

It’s often unclear what’s a paid placement and what’s not, however, since artists generally don’t disclose the deals. No, Drake wasn’t paid by Rolls-Royce to include the Wraith in “Portland,” or its bigger and pricier cousin, the Phantom, in “Jumpman,” according to the manufacturer. But Chris Brown’s 2008 hit “Forever,” which featured the line “double your pleasure,” turned out to be an extended version of a chewing gum jingle for Wrigley’s Doublemint.

“Sometimes they do it because they hope to get the company interested in them”

There’s a middle ground, however. Rolls-Royce, for example, will sometimes provide cars to be featured in music videos, said company spokesman Gerry Spahn. When someone uses the car as a shorthand for luxury, it helps the brand, he said. And besides, celebrities and musicians make up about 20% of the automaker’s customers, so it has the potential to be a sales strategy, too.

The $400,000 Phantom is Rolls-Royce’s signature vehicle, but the company has attracted much hype for three other models it’s released since 2009: the Ghost, Wraith, and Dawn. All have garnered song mentions, with the Wraith topping the tally with four.

While parent company BMW AG keeps close tabs on the Rolls-Royce brand, Spahn said they’re more than happy for the exposure. Last year, Rolls-Royce had its second-highest sales numbers ever, delivering more than 4,000 cars to wealthy customers around the world. Even if the car’s desirability increased, production constraints limit the company to a maximum of 6,000 cars a year, said a person with knowledge of its operations.

More demand for limited supply, of course, makes the car even more exclusive. So for a company like Rolls-Royce, what’s the actual financial value of all those brand mentions?

“Assigning a value to a product placement in a music video, or TV show, or video games, is completely different from the way traditional commercials work – which values how many people watched it,” said Cristel Russell, an associate professor of marketing at American University. “So you wouldn’t want to use the same type of metrics and value measure for something that advertises on a subtle basis.”

“We make no judgments. We want to be connected to success”

Russell, who studies product placement, said even if a company doesn’t pay for placement, the mention might still come with an indirect financial return for the artist. “Sometimes they do it because they hope to get the company interested in them and eventually get some type of promotional gig,” she said. “It’s their way of saying, ‘Hey, I like your car.’ Not an immediate financial return for them, but it’s an eventual exchange of services.”

Others consider that kind of exposure negative. Take the famed spat between rapper Jay-Z and Champagne brand Cristal. It began more than a decade ago, when Cristal executive Frédéric Rouzaud decried rappers’ penchant for bragging about their bottles of the pricey bubbly. “What can we do?” he lamented in a 2006 interview with the Economist. “We can’t forbid people from buying it.”

Jay-Z took offense, called for a boycott, and stopped rapping about it. About a year later, he started touting Armand de Brignac, another fancy Champagne that earned the nickname “Ace of Spades” for its flashy logo. Jay-Z coincidentally has a financial interest in that label. Years later, Cristal was still throwing jabs at the rapper who shunned it.

Rolls-Royce, meanwhile, is one of those brands that believe that, if not all, most publicity is good publicity. “We make no judgments,” said Spahn. “We want to be connected to success.” – Bloomberg

Ayala, GE invest P1.3B to open 100 clinics by 2020

By Krista A. M. Montealegre,
National Correspondent

AYALA Corp. is ramping up the expansion of its health care business in partnership with US-based conglomerate General Electric Co. (GE), spending more than P1 billion through 2020 to achieve its goal of establishing a chain of community-based clinics.

FamilyDOC General Manager Paul H. Darroca said in a briefing on Thursday the goal is to end the year with 24 clinics, with the entry to new markets like Taguig, Pasig and Pateros, and double this to 50 by 2018.

Ayala Healthcare Holdings, Inc. is set to start its expansion in Laguna and Quezon City next year, as part of the P1.3-billion investment program to build a network of 100 primary care clinics by 2020.

Today, AC Health has 11 FamilyDOC clinics located in Las Piñas, Parañaque and Cavite.

In the fourth quarter, FamilyDOC plans to open a new format that will also incorporate the Generika Drugstore, which is 50% owned by Ayala, within the clinic.

“AC Health recognizes the gaps in primary care in the Philippines and seeks to address the current challenges such as long wait times, and the unavailability of doctors and staff. We recognize that middle-class patients are underserved, but willing to pay for quality health care if it gives them good value for money,” Mr. Darroca said.

AC Health tapped GE Healthcare as a technology provider in 2015, but the relationship evolved into a strategic partnership, resulting in the establishment of two pilot clinics in December of the same year.

As FamilyDOC worked on a strategy for sustainable expansion in consultation with GE Healthcare, it settled on a hub-and-spoke model towards growth. In 2016, FamilyDOC opened two hub clinics featuring ultrasound and X-ray services, and four spoke clinics offering regular medical consultation services.

Myra Eskes, president and chief executive officer of GE Healthcare in ASEAN, believes the growing middle class and the government’s announcement for universal health care coverage will present opportunities to expand the health care system.

The challenge is to provide rural areas access quality health care,” Ms. Eskes said.

“By leveraging each of our strength and experiences, I am confident we can implement solutions that address both health care access and affordability for Filipinos,” she said.

The Ayala group’s recent foray into health care is part of the conglomerate’s massive transformation in recent years that saw it enter businesses offering services to a larger part of the population, paving the way for investments in education, water, telecommunications, power and infrastructure.

Shares in Ayala were unchanged at P899 apiece on Thursday.

Insurance brokerage income climbs in 2016 as commissions drop

THE Insurance Commission (IC) saw income from brokerage activities inch up last year, despite lower commissions earned, due to the growing online platforms.

In a statement, IC said it collected P52.07 billion mediated premium income from the 62 registered brokerage firms last year, up 2.46% from the P50.82 billion recorded in end-2015.

This represented about 44.49% of the total P117.29 billion premium income of the insurance industry in 2016.

Non-life insurance premium income accounted for 84.85% or P44.19 billion of total brokers’ income, while the life insurance sector generated P7.88 billion, IC data showed.

On the other hand, life insurance premiums that year amounted to P7.88 billion, which made up 15.14% of the overall mediated premium by the insurance brokerage industry.

However, these brokerage firms reported a 2.25% decrease in commissions to P6.53 billion from the P6.68 billion recorded in 2015.

“The reason for this slight decrease can be attributed to the 36.61% decrease in the commissions earned by brokers from the life insurance business from P1.83 billion in 2015 to P1.16 billion in 2016,” Insurance Commissioner Dennis B. Funa was quoted in a statement as saying.

Non-life insurance commissions — which represent 82.24% of the total commissions of the industry — however grew 10.72% to P5.37 billion last year from P4.85 billion in 2015.

“The top five insurance brokers which produced more than half of the total premium produced by the insurance brokerage industry are BDO Insurance Brokers, Inc., AON Insurance and Reinsurance Brokers Philippines, Inc., Marsh Philippines, Inc., HSBC Insurance Brokers (Phils.), Inc. and Jardine Lloyd Thompson Insurance Brokers, Inc.,” IC said.

Moreover, IC also noted that premium income from the 19 registered reinsurance brokerage companies stood at P1.35 billion, with commissions at P168.72 million.

Mr. Funa noted that brick and mortar brokerage firms are on a tight spot, given the rise of online services to market firms’ insurance products, Mr. Funa said

“The insurance brokerage industry is confronted with the several challenges including the use of online platforms by insurance companies in selling their product and the continued growth in the sales force of insurance companies,” said Mr. Funa.

“However, insurance brokers should take this as an opportunity to upgrade and improve their services for the benefit of their clients—the insuring public,” the IC Commissioner added.

He said the IC is currently reviewing its rules and regulations in order to further strengthen the framework governing insurance brokerage companies. — Elijah Joseph C. Tubayan

Harvey likely to be first hurricane to strike Texas since 2008; oil firms prepare

BOSTON — Harvey, which is likely to strengthen into the first hurricane to strike Texas since 2008, forced workers off Gulf of Mexico platforms, sent cotton rallying and has airlines preparing for flight disruptions.

Now a tropical storm, Harvey “could become a hurricane on Friday,” the National Hurricane Center said in an advisory issued at 1 a.m. Central Daylight Time.

“It could intensify right up to landfall on Friday,” said Jeff Masters, co-founder of Weather Underground in Ann Arbor, Michigan. “I expect a Category 1 hurricane at landfall, but I cannot rule out a Category 2.”

Harvey is expected to bring multiple hazards including heavy rainfall, storm surge and possible hurricane conditions to parts of the Texas coast on Friday. Heavy rainfall is expected to spread across portions of eastern Texas, Louisiana, and the lower Mississippi Valley from Friday through early next week and could cause life-threatening flooding, according to the advisory.

The Gulf Coast from Corpus Christi, Texas, to Lake Charles, Louisiana, is home to nearly 30 refineries — making up about seven million barrels a day of refining capacity, or one-third of the US total. It’s in the path of heavy rainfall expected to start late Thursday. Flooding poses risks to operations and may cause power failures.

CRUDE OIL SUPPLIES
“Biggest impact of this storm will be a significant reduction of crude oil imports into the Texas Gulf Coast, resulting in refineries cutting crude rates,” Andy Lipow, president of Lipow Oil Associates in Houston, said by e-mail. “There will also be a significant impact on petroleum product exports impacting supplies into Mexico.”

Houston wholesale conventional gasoline rose 1.9% to $1.5926 a gallon Wednesday, data compiled by Bloomberg show.

Ike in 2008 was the last hurricane to hit Texas, said Dennis Feltgen, spokesman for the National Hurricane Center. Ike struck as a Category 2 storm on the five-step Saffir Simpson scale.

Exxon Mobil Corp. had said it’s cutting output at its Hoover production platform in the Gulf of Mexico ahead of the storm. The company’s also working on plans to evacuate staff in stages from offshore facilities that will be in the path of the storm, Suann Guthrie, a spokeswoman, said by e-mail. Royal Dutch Shell Plc shut production at its Perdido platform and evacuated the facility.

Anadarko Petroleum Corp. said earlier this week it’s removing nonessential staff from some production platforms in the Gulf of Mexico in response to weather conditions. Cheniere Energy, Inc. “activated” the severe weather team at its Sabine Pass LNG export terminal in Louisiana, Eben Burnham-Snyder, a spokesman, said by e-mail. “At this time no production impacts expected.”

HEAVY RAINS
Along the coastline, seas could rise four to six feet ( 1.2 to 1.8 meters) above ground level and from 10 to 15 inches (25 to 38 centimeters) of rain will probably fall across parts of Texas into Louisiana, the hurricane center said. Some areas could get as much as 20 inches of rain.

“It is going to be a wet one,” Mr. Masters said. “It is not going to move fast after landfall and that is going to cause big trouble” from flooding rains.

The current track calls for the storm to land in southeastern Texas. Mr. Masters said at least one computer-forecast model shows the storm heading back into the Gulf of Mexico early next week before coming ashore in Texas again.

Texas power suppliers Oncor Electric Delivery Co. and CenterPoint Energy, Inc. said they expect Harvey to make landfall Friday and are making preparations. American Electric Power Co. is making arrangements to bring in outside repair crews if they’re needed, Larry Jones, a spokesman, said in a phone interview Wednesday.

COTTON RALLIES
Cotton rallied on speculation the storm will threaten US crops. On ICE Futures US in New York, cotton for December delivery climbed 1.6% on Wednesday to settle at 68.89 cents a pound after earlier reaching the highest since Aug. 10.

American Airlines Group, Inc. is allowing people traveling through Houston and nine other cities on certain dates to rebook their flights without a fee because of the storm. United Continental Holdings, Inc. is offering the same in eight cities, while Delta Air Lines, Inc. is offering a similar waiver for Houston flights.

Policyholder-owned State Farm Mutual Automobile Insurance Co. has the largest share in the market for home coverage in Texas, followed by Allstate Corp., Farmers Insurance and United Services Automobile Association, according to data compiled by A.M. Best Co. — Bloomberg

Smiley faces to rolling eyes: Where do all those emojis come from?

LOS ANGELES — Cheery Hi-5, a snobbish Poop and a conflicted Meh have starring roles in the animated The Emoji Movie, which imagines a world inside cellphones where emojis rebel against portraying just one emotion all their lives.

Yet the dozen or so people who select and release the tiny, ubiquitous characters globally are far removed from the glitz of Hollywood, where the Sony Pictures movie was developed.

The humans who toil in obscurity to shape and approve new emojis are part of the Unicode Consortium, a Silicon Valley-based group of computer and software corporations and individual volunteers with backgrounds in technology, encoding and linguistics.

From smiley faces to thumbs up, there are now some 2,600 different emojis worldwide and, according to a July Facebook, Inc. report, more than 60 million a day are sent on the No. 1 social media network alone.

The consortium approves about 50-100 new emojis every year, not counting the different skin tones for people emoji, after a rigorous application and review process, said Mark Davis, president and cofounder of the group.

The latest batch, released in June and reaching phones and other devices in coming months, include a star-struck emoji, an exploding head, a group of wizards, mermaids, and a woman wearing a hijab.

“We get submissions from all over the world,” Davis said in an interview. “The hijab emoji came from a Saudi Arabian young woman who is living in Germany who made a very compelling proposal. I’m looking forward to the exploding head — I think that’s going to be very popular.

“People need to make a case as to why they think their emoji is going to be frequently used, how it breaks new ground, how it is different from other emojis that have already been encoded.”

Logos, brands and emojis tied to specific companies are not accepted. “We also don’t accept specific people. We did encode a cowboy but we wouldn’t encode John Wayne,” Davis said.

Some concepts just do not translate as emoji.

“Anything that needs a lot of detail to explain or understand is trouble. It’s also hard to make an emoji for something abstract — like good governance, or a responsible president,” Davis said.

Davis said there are 2,666 emojis worldwide. The LOL emoji with tears of laughter is the most popular, according to a July Facebook survey of its 2 billion monthly users, followed by the heart eyes emoji. Italians and Spaniards favor the kissing emoji.

The consortium played no part in the making of The Emoji Movie, Davis said, because all of its work is open-source, available to all, and no permissioning was needed.

Nevertheless, he never imagined that the computer-generated punctuation marks that originated in Japan in the 1980s would become Hollywood stars.

“That’s something that never really crossed our minds,” Davis said. — Reuters

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