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Typhoon batters Hong Kong; streets flooded, flights canceled

HONG KONG — Typhoon Hato, a maximum category 10 storm, slammed into Hong Kong on Wednesday lashing the Asian financial hub with wind and rain that uprooted trees and forced most businesses to close, while in some places big waves flooded seaside streets.

There were reports of 34 people injured in Hong Kong while in the city of Macau, across the Pearl River estuary, three people were killed, authorities there said.

In Hong Kong, more than 450 flights were canceled, financial markets suspended and schools closed as Hato bore down, the first category 10 storm to hit the city since 2012.

“I’ve never seen one like this,” Garrett Quigley, a longtime resident of Lantau island to the west of the city, said of the storm.

“Cars are half submerged and roads are impassable with flooding and huge trees down. It’s crazy.”

Many skyscrapers in the heart of Hong Kong were empty and dark as office workers stayed at home.

Hato churned up Hong Kong’s Victoria Harbour and triggered large swells and big waves on some of the city’s most popular beaches, with serious flooding in low-lying areas.

In residential districts like Heng Fa Chuen on densely populated Hong Kong island, waves smashed against the sides of oceanfront buildings and surged over a promenade, swamping roads and vehicles parked nearby.

Construction cranes swayed at the tops of skyscrapers, windows imploded and nearly 200 trees were uprooted, while some people used canoes to venture out into flooded streets.

Authorities downgraded the storm to a category eight by mid-afternoon.

HIGH SEAS
The storm also caused a power blackout across most of the gambling hub of Macau for about two hours, residents said, with disruption to mobile phone and internet networks.

The former Portuguese colony’s casinos, however, had backup power, two casino executives told Reuters.

The storm also made landfall in China’s Guangdong province, in Zhuhai city adjacent to Macau, China’s Xinhua state news agency.

Numerous flights and trains were canceled in Guangdong province, with Shenzhen’s International Airport particularly badly hit.

Thousands of residents along the Chinese coast were evacuated and fishing vessels were called back to port.

Maximum winds near Hato’s center were recorded at a destructive 155 kph (95 mph).

A senior scientific officer for the Hong Kong observatory warned that sea levels could rise several meters in some places, with the government issuing flood alerts and opening 27 shelters across the city.

Trading in Hong Kong’s financial markets was halted for the day, the stock exchange said. Typhoon Nida in August last year was the last storm to close the exchange for the whole day.

The city’s flagship carrier, Cathay Pacific, and Hong Kong Airlines said the majority of their flights to and from Hong Kong between 2200 GMT Tuesday and 0900 GMT Wednesday would be canceled.

Other transport services, including ferries to the gaming hub of Macau and outlying islands in Hong Kong, were suspended. — Reuters

5.1 tremor shakes Leyte

A MAGNITUDE 5.1 earthquake shook Leyte at 6:26 a.m. yesterday, with the epicenter located in the town of Albuera. The Philippine Institute of Volcanology and Seismology (Phivolcs) reported in its bulletin that intensity 5 was felt in Ormoc City. intensity 4 in Pastrana, and intensity 3 in Tacloban City and Palo. A slight intensity 1 was also recorded in Cebu City, located in the neighboring island province of Cebu. Ormoc City was among the areas most affected by a magnitude 6.5 tremor last July 6, with the epicenter eight kilometers southwest of Jaro. Houses, buildings, public infrastructure, and energy facilities were damaged. Phivolcs said aftershocks were expected from yesterday’s earthquake.

Saint Louis Rapid/Blitz

After the Sinquefield Cup came the Rapid/Blitz tournament played in the same venue, the Saint Louis Chess Club. The format is exactly the same as in Paris and Leuven, with nine rounds of 25-minute rapid split over the first three days followed by 18 rounds of 5-minute blitz on the next two. The Rapid portion has double-weight — you multiply its results by 2 before adding the points to the Blitz portion to get the combined standings.

Once again instead of the increment where a few seconds are added to your block after every move (the Fischer clock) we instead have a delay (this is called the Bronstein clock): 10 seconds per move in rapid and three seconds per move in blitz. The 10 or three seconds is just a delay before the clock starts running — it is not added to your time. In other words, once you are in time trouble you can no longer get out of it by moving instantaneously in the next few moves.

In this year’s Grand Chess Tour there are three such rapid/blitz tournaments and the participants can only play in two of them. Magnus Carlsen, Wesley So and Maxime Vachier-Lagrave had already played in the Paris and Louvain legs and were thus not eligible for Saint Louis. Their replacements though were more than adequate. First you have the greatest player of all time Garry Kasparov who agreed to come out of retirement (that was 12 years ago) and play. Other wild cards who came just for this leg were Le Quang Liem (Vietnam) and Leinier Dominguez Perez (Cuba), both of whom were former World Blitz Chess Champions.

The presence of Garry Kasparov ensured that the Saint Louis Chess Club would be jampacked for the duration of the tournament and that all online records would be broken.

Aronian came off the gate with a beautiful win against Navara, which I will show you later, and kept among the leaders through the 1st and 2nd day. He was obviously in good form and unleashed his patented Ruy Lopez treatment from the Black side of the Spanish Opening. We will also show this to you later.

* * *
2017 Saint Louis Rapid
Saint Louis, USA
Aug. 14-16, 2017

Final Standings (with Rapid Ratings)

1. Levon Aronian ARM 2794, 6.0/9

2-3. Hikaru Nakamura USA 2822, Fabiano Caruana USA 2700, 5.5/9

4. Ian Nepomniachtchi RUS 2810, 5.0/9

5. Lenier Dominguez Perez CUB 2803, 4.5/9

6-7. Le Quang Liem VIE 2761, Sergey Karjakin RUS 2765, 4.0/9

8-10. Garry Kasparov RUS, Viswanathan Anand IND 2778, David Navara CZE 2737, 3.5/9

Time Control: 25 minutes play-to-finish with a 10 second delay each move.

Take a look at the one on 7th place in the tournament crosstable — Sergey Karjakin. You might think he is down and out for the rest of the event, but Karjakin scored 8/9 in the 1st half of the Blitz portion to almost catch up with Aronian in the combined standings. But he then slowed down in the second half with losses against Nakamura and Navara and by the end of the tournament Aronian was 3 points ahead in the combined standings.

* * *
2017 Saint Louis Blitz
Saint Louis, USA
Aug. 17-18, 2017

Final Standings (with Blitz Ratings)

1. Sergey Karjakin RUS 2807, 13.5/18

2. Levon Aronian ARM 2794, 12.5/18

3. Hikaru Nakamura USA 2868, 10.5/18 4 Ian Nepomniachtchi RUS 2787, 10.0/18

5. Garry Kasparov RUS, 9.0/18

6. Le Quang Liem VIE 2747, 8.5/18

7. Leinier Dominguez Perez CUB 2796, 7.5/18

8. Viswanathan Anand IND 2756, 7.0/18

9. David Navara CZE 2748, 6.0/18

10. Fabiano Caruana USA 2806, 5.5/18

Time Control: Five minutes play-to-finish with a 3 second delay each move.

* * *
2017 Saint Louis Combined Standings
Saint Louis, USA
Aug. 17-18, 2017

Combined Standings (Rapid counts double)

1. Levon Aronian ARM, 24.5/36

2-3. Sergey Karjakin RUS, Hikaru Nakamura USA, 21.5/36

4. Ian Nepomniachtchi RUS, 20.0/36

5-7. Leinier Dominguez Perez CUBN, Fabiano Caruana USA, Le Quang Liem VIE, 16.5/36

8. Garry Kasparov RUS 16.0/36

9. Viswanathan Anand IND 14.0/3610 David Navara CZE 13.0/36

Here are the games I promised to show you.

* * *
Aronian, Levon (2799) — Navara, David (2737) [E15]
Saint Louis Rapid 2017 USA (1.4), 14.08.2017

1.d4 Nf6 2.c4 e6 3.Nf3 b6 4.g3 Ba6 5.b3 Bb4+ 6.Bd2 Be7

The Queen’s Indian is Navara’s main defense against 1.d4.

7.Nc3 0–0 8.Bg2 d5 9.cxd5 exd5 10.0–0

Black has two main plans here, either to go for the old school Karpov…c7–c5 or Kramnik’s more modern approach with…c7–c6.

10…Re8 11.Ne5 Bb7 12.Qc2 c5 13.dxc5 bxc5 14.Rad1 Qc8

Black has two hanging pawns in the center but it is not easy getting to them. Aronian has a new idea though.

15.e4 Bf8

[15…d4 16.Nd5 Nxd5 17.exd5 Nd7 18.Nc6 does not look very appealing for Black]

16.f4 d4 17.Nd5 Nxd5 18.exd5 f6 <D>

Position after 18…f6

Trying to expel the knight. This is much more appealing than 18…Nd7 19.Bh3

19.Rde1! fxe5 20.fxe5

Aronian’s threat is e5–e6 followed by Qf7.

20…Nd7 21.e6 Nf6 22.Rxf6! gxf6 23.Qf5

New threat is Re1–e4–g4.

23…Qd8? 24.Re4 Re7 25.Rg4+ Kh8

Hopeless:

25…Rg7 26.Be4 Rg6 27.Rxg6+ hxg6 28.Qxg6+ Bg7 29.Bh6 Qc7 30.Qh7+ Kf8 31.Qh8+ Ke7 32.Qxg7+ Kd6 33.Bf4#;

25…Bg7 26.Be4 there is no defense

26.Be4 Rc8 27.Rh4 Kg8 28.Rxh7 Bxd5 29.Qg6+ Rg7 30.Qh5! Bxe4 31.Rh8# 1–0

Aronian and his Black Ruy Lopez.

Levon Aronian has a good score from the Black side of the Spanish Opening. There would usually be a clash on the queenside and then he suddenly swings over to the kingside through the f-file. Maybe doubled rooks, or maybe a knight on f4, then the attack comes. Here is a famous example from many years ago against no less than Magnus Carlsen.

* * *
Carlsen, Magnus (2693) — Aronian, L (2759) [C84]
Elista RUS Elista RUS (1), 27.05.2007

1.e4 e5 2.Nf3 Nc6 3.Bb5 a6 4.Ba4 Nf6 5.0–0 Be7 6.d3 b5 7.Bb3 d6 8.a4 Rb8 9.axb5 axb5 10.Nc3 0–0 11.h3

First a queenside clash.

11…Nb4 12.Ne2 c5 13.Ng3 Be6 14.Bxe6 fxe6 15.c3 Nc6 16.Re1 Qd7 17.d4 exd4 18.cxd4 c4 19.Bg5 h6 20.d5

Now Aronian will switch to the kingside.

20…exd5 21.Bxf6 Bxf6 22.Qxd5+ Rf7 23.Qd2 Ne5 24.Nxe5 Bxe5 25.Ne2 Rbf8 26.Rf1 Rf3! 27.Ra3

[27.gxf3 Rxf3 28.Ra3 Qxh3 29.Nf4! Bxf4 30.Qxf4 Qxf1+ 31.Kxf1 Rxf4 with an easily winning endgame]

27…Rxa3 28.bxa3 Qc6 29.Nd4 Bxd4 30.Qxd4 Ra8 31.Ra1 c3 32.Qb4 Qc5 33.Qb3+ Kh8 34.Ra2 Ra4 35.Re2 Rxa3 36.Qd1 Ra8 0–1

We saw a few examples of that system here in Saint Louis. Here is the most impressive.

* * *
Karjakin, Sergey (2773) — Aronian, Levon (2799) [C77]
Saint Louis Rapid (7.5), 16.08.2017

1.e4 e5 2.Nf3 Nc6 3.Bb5 a6 4.Ba4 Nf6 5.0–0 Be7 6.d3 b5 7.Bb3 d6 8.a3 0–0 9.Nc3 Na5 10.Ba2 Be6 11.b4 Bxa2 12.Nxa2 Nb7 13.c4 bxc4 14.dxc4 a5 15.Bb2 Qb8 16.Nc3 axb4 17.axb4 Rxa1 18.Qxa1 Nd8

The knight is going to f4 to anchor a kingside attack.

19.Qa4 Ne6 20.Nd5 Nxd5 21.cxd5 Nf4 22.g3 Qc8! 23.Qd1

[23.gxf4 Qg4+ 24.Kh1 Qxf3+ 25.Kg1 Qg4+ 26.Kh1 Qe2 27.Qa1 f5! the attack is already very strong]

23…Nh3+ 24.Kg2 f5 25.exf5 Qxf5

Black is threatening 26…Qg4 (with the threat of 27…Rxf3 28.Qxf3 Nf4+ winning the queen) 27.Bc1 e4 28.Nd4 Rxf2+ 29.Kh1 h5 30.Qxg4 Rxf1+ 31.Kg2 Rg1+ 32.Kxh3 hxg4+ 33.Kxg4 Rxc1. Yes, I know, where are all these tactics coming from?

26.Bc1 g5 27.Qe2 g4 28.Nd2 Ng5

Intending …e5–e4 followed by …Nf3.

29.f3 gxf3+ 30.Nxf3 Qe4! 31.Qxe4 Nxe4 32.Bh6 Rf6 33.Bd2

[33.Bc1 Nc3 winning the crucial pawn on d5]

33…Rxf3! 34.Rxf3 Nxd2 35.Ra3 Kf7 36.Ra8 Nc4 37.Kf3 Nb6 38.Ra5 Kg6 39.Ke4 Nd7 40.Kd3 Kf5 41.Ra7 e4+ 42.Ke2 Bd8 43.Ra8 Bf6 44.Ra7 Nb6 45.Rxc7 Nxd5 46.Rb7 Nc3+ 47.Kd2 d5 48.b5 d4 49.b6 e3+ 50.Kd3 e2 51.Kd2 d3 52.Rf7 Ne4+ 53.Ke1 Ng5 [Followed by …Nf3+ and Black queens first] 0–1

You know of course that there are two players who wear Barong Tagalogs in the Grand Chess Tour. One is Wesley So, and the other is Levon Aronian. He will be marrying his fiancée Fil-Australian WIM Arianne Caoili in October. My best wishes to them and hope they will live happily ever after.

The big attraction for this tournament is Garry Kasparov, of course. On Tuesday we will look at some of his games. Will he be coming back any time soon? We will see.

Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas (UST) for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net

DENR moving to identify more potential sources of water

THE Department of Environment and Natural Resources  (DENR) said it will classify in the next five years 183 more bodies of water according to their quality and uses, among other considerations, as part of an effort to look for more potential sources of drinking water.

Environment Secretary Roy A. Cimatu said he has been assured by the Environmental Management Bureau (EMB) that the classification of an additional 183 bodies of water will be finished by 2022.

To date, the agency has classified a total of 761 bodies of water since Republic Act 9275, or the Clean Water Law of 2004, was established.

“These water resources need to be protected and managed with care in order for them to supply us with abundant clean water for the foreseeable future,” Mr. Cimatu said in a statement on Wednesday,

The law mandates the DENR to categorize bodies of water — whether freshwater or coastal — according to their quality, area, purpose and vulnerability to pollution.

Water classification serves as a basis for planners to develop proper water quality management programs and set standards to protect aquatic life and human use of specific bodies of water.

Based on the standards the DENR has established, bodies of water can be classified as watersheds that are uninhabited or declared protected areas, water sources that require conventional upkeep, set aside as recreational areas or agriculture, and as navigable waters, among other categories. — Janina C. Lim

Nickelodeon axes Coron resort plan after outcry

MANILA — American children’s television network Nickelodeon said Wednesday it had abandoned plans for a themed resort on an island known as the Philippines’ last ecological frontier following a backlash from environmentalists.

Nickelodeon said in January that it would build an “undersea attraction and resort” on Palawan island that would let fans “interact with the brand and the iconic characters they love,” including SpongeBob SquarePants and Dora the Explorer.

The announcement triggered fierce criticism from environmental campaigners who said it would destroy the area’s world-famous marine ecosystem, and an online petition calling for the project to be scrapped attracted more than 260,000 signatures.

Viacom International Media Networks, which owns Nickelodeon, said Wednesday it had abandoned the project.

“(Viacom) and Nickelodeon will no longer be involved with this proposed development,” the company said in a statement sent to AFP.

Viacom said the decision was “mutually agreed” with its Philippine partner, Coral World Park.

The statement did not say why Viacom had pulled out and its regional spokeswoman would not elaborate when contacted by AFP.

Viacom’s initial statement in January promoted the project as its first resort in Southeast Asia that “would give a significant business opportunity for our partners across multiple platforms.”

However, Viacom and Coral World Park also highlighted the project’s “ocean conservation focus” and plans for a giant marine sanctuary.

Environmental group Greenpeace on Wednesday hailed Viacom’s decision as a victory. “We commend Viacom for heeding the call of more than 200,000 online petitioners and the offline community campaign,” Vince Cinches of Greenpeace Southeast Asia told AFP.

“They were able to dodge the bullet that has a huge reputational backlash for Nickelodeon which has been claiming it is children oriented.”

The Nickelodeon resort inPalawan was meant to be part of Coral World Park’s 400-hectare (1,000-acre) development.

Coral World Park did not immediately to respond to AFP e-mails on whether it would pursue the project following Viacom’s withdrawal.

The executive director of environmental group Save Philippine Seas, Anna Oposa, told AFP the campaign against the development would not let up.

“Our position and strategy will not change: we’ll continue to call on the local government of Coron and provincial government of Palawan to reject the project,” she said. — AFP

Peso continues to climb

THE PESO continued to strengthen against the dollar on Wednesday ahead of the Jackson Hole Economic Policy Symposium amid the absence of catalysts offshore and at home, as well as a rise in inflows brought by Japan Tobacco Inc.’s (JTI) acquisition of Mighty Corp.

The peso closed at P51.22 versus the greenback yesterday, gaining two centavos from Tuesday’s finish of P51.24 per dollar.

The peso opened the session at P51.22 against the dollar. Its intraday trough was seen at P51.32 versus the greenback, while its best showing was at P51.09-to-the-dollar.

One trader said the peso climbed against the greenback as the market is on a wait-and-see mode ahead of a gathering of global central bankers in Jackson Hole, Wyoming on Friday.

“The peso just moved sideways today, due to lack of fresh leads and as investors await on the sidelines ahead of the Jackson Hole Economic Policy Symposium,” the trader said by e-mail on Wednesday.

Reuters reported the event’s highlights would be speeches from US Federal Reserve Chair Janet L. Yellen as well as European Central Bank (ECB) President Mario Draghi.

“The downward bias might be attributed to political noise in the US and possibly some BSP intervention,” the trader noted. The Bangko Sentral ng Pilipinas sometimes steps in during the trading session to temper any sharp swings from the peso versus the dollar.

Meanwhile, another trader said the local unit ended higher against the greenback due to large inflows brought about by JTI’s buyout of Mighty’s assets.

“The main story is because there was a large inflow, which I think had something to do with the Japanese company’s acquisition of Mighty. That’s why volume was also large because the peso was bought,” the trader said by phone on Wednesday. JTI announced on its Web site on Tuesday that it would pay $936 million or P46.8 billion to buy the assets of Mighty.

Trading volume was at $949.1 million on Wednesday, jumping from the $569.2 million that changed hands on Tuesday.

For today, one trader sees the exchange rate settling at P51.15 to P51.40, while the other trader said the peso could range within P51.05 to P51.35-to-the dollar.

“The peso might appreciate amid likely weak US data on manufacturing and services,” one trader said.

Asian currencies were steady on Wednesday, supported by improving risk sentiment due to easing concerns over geopolitical risks in the region.

The dollar index, which tracks the greenback against a basket of six major currencies, was flat on the day at 93.513 after it gained 0.5% the previous session.

“Overall theme of receding risk aversion due to either US politics or US-North Korea situation, has boded well for risk sentiment, buoying equities and perhaps supporting inflows into the region,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank in Singapore. “Apart from China, most of the equity markets seem to be up. That is acting as a backstop for Asian currencies.”

The South Korean won led regional gains, up more than a quarter of a percent against the dollar.

The Indonesian rupiah inched down despite a surprise rate cut by Bank Indonesia on Tuesday to stoke lending and consumption.

With its first rate cut since October, the Indonesian central bank became the second major Asian economy to cut after India.

The Thai baht edged lower after its custom-cleared annual exports fell short of expectations, while the Malaysian ringgit too inched down after Malaysia’s consumer price index rose at a slower pace for the fourth month in a row. — Janine Marie D. Soliman with Reuters

N. Korea’s Kim ‘starting to respect US’ — Trump

SEOUL — North Korean leader Kim Jong-Un is “starting to respect” the United States, President Donald J. Trump declared, even as Pyongyang revealed plans for its missile development Wednesday and Mr. Kim ordered a production boost.

Mr. Trump’s remarks, at a rally in Phoenix, came hours after Secretary of State Rex W. Tillerson said talks with the nuclear-armed North over its banned weapons programs might be possible “in the near future.”

The comments are a marked contrast to the rhetoric of recent weeks, when Mr. Trump spoke of raining “fire and fury” on the North, and come as tensions have eased after Mr. Kim pulled back from a plan to send a salvo of missiles towards the US Pacific territory of Guam.

But Washington also imposed new sanctions on Chinese and Russian firms suspected of doing business with the North.

Pyongyang, meanwhile, revealed significant technological advances in its missile programs and ambitious plans to further improve its capabilities.

On a visit to the Chemical Material Institute of the Academy of Defense Science, Mr. Kim ordered stepped-up production of rocket engines and intercontinental ballistic missile nosecones, state media reported.

At a campaign-style rally in Phoenix, Mr. Trump said his aggressive rhetoric was starting to bear fruit.

“Some people said it was too strong. It’s not strong enough,” he told thousands of supporters. “But Kim Jong-Un, I respect the fact that I believe he is starting to respect us. I respect that fact very much.”

“And maybe, probably not, but maybe something positive can come about.”

Earlier Mr. Tillerson acknowledged Pyongyang’s recent “restraint” in not carrying out fresh nuclear or missile tests in response to tough new United Nations sanctions, the seventh set imposed on it.

“I am pleased to see that the regime in Pyongyang has certainly demonstrated some level of restraint that we’ve not seen in the past,” Mr. Tillerson said at a rare press conference, adding that talks may be possible “in the near future.”

US officials told AFP that Mr. Tillerson was not thanking Pyongyang, nor making any concession on Washington’s determination to halt Mr. Kim’s missile program and negotiate the denuclearization of the Korean peninsula.

The Trump administration’s rhetoric has been highly variable but Washington has said it would be open to dialogue if Pyongyang took steps to calm tensions.

Tensions between North Korea and the United States and its allies soared last month after Pyongyang tested two missiles that appeared to bring most of the US mainland within range.

Pyongyang has made rapid technological strides under Mr. Kim, and released pictures Wednesday of a visit by him to the Chemical Material Institute of the Academy of Defense Science, which develops the North’s missiles.

Analysts said the images revealed major advances and ambitions. — AFP

Smartphone shipments in PHL drop in second quarter — IDC

THE VOLUME of smartphones shipped to the Philippines declined in the second quarter as local vendors faced tougher competition from their Chinese counterparts, a report by research firm IDC showed.

According to International Data Corp.’s (IDC) Asia/Pacific Quarterly Mobile Phone Tracker, four million smartphones were shipped to the Philippines in the second quarter, posting a 10% year-on-year decline.

“OPPO and Vivo disrupted the smartphone retail space through cash-rich marketing, aggressive sales promoter incentives and previously unseen levels of retailer support. This challenged the traditional vendor-dealer relationship smartphone vendors have been accustomed to. Smaller players with less marketing and merchandising budget at their disposal were unable to do so, thus suffering drops in market shares,” Jerome Dominguez, market analyst for client devices at IDC Asia/Pacific said.

Local vendor share of the smartphone market was down to 41% in the second quarter from 49% last year. Despite increasing competition from Chinese smartphone vendors, however, local vendors in the Philippines performed better relative to local vendors in Southeast Asian countries. Shares of the smartphone markets in Indonesia, Thailand, Vietnam and Malaysia were now down to 19%, 11%, 6%, and 1%, respectively.

Global vendor shares of the smartphone market in the Philippines remained flat, recording a share of 27%, with only Samsung as the strong performer. Chinese vendor shares jumped from to 22% in the second quarter from 15% last year.

Local smartphone brand Cherry Mobile maintained its lead in the smartphone market, with below $50 smartphones driving its high volume. In response to heavy promotions from global and Chinese vendors, it beefed up its marketing spending with ad placements and airtime on popular noontime shows.

Samsung came in at second, with the J series making up majority of its shipments for the 1st half of 2017. It focused on improving above-the-line marketing and sales promoter incentives with the quick rise of Chinese vendors.

OPPO was the 3rd biggest vendor, its growth related to an aggressive approach in marketing, merchandising, and sales. Like Samsung and Vivo, the company benefited from its partnership with Home Credit, allowing it to offer smartphones at 0% interest installment without the credit card requirement, making its offerings more accessible to mass market consumers.

Cloudfone placed fourth with its marketing and promotions focused on sports events like its partnerships with the National Basketball Association (NBA) and the Philippine Basketball Association (PBA). Its efforts on the below-$25 segment pushed its volume for the quarter.

Vivo was the 5th biggest vendor, as the Stephen Curry endorsement helped establish its brand presence on the local scene. The company also produced a lot of road shows, with Vivo Perfect Selfie Tour covering most of the major malls in Metro Manila and other key cities.

IDC said the rise of OPPO and Vivo, which are sister brands under one Chinese mega company, BBK Electronics, affirmed the importance of combining a wide sales and distribution approach with strong marketing and advertising strategies to capture consumer mindshare. To preserve brand equity among consumers, leading global and local vendors who have reduced marketing spending last year were seen to shift their resources to funding actively on integrated marketing campaigns this year.

IDC also said in its report that global vendor shares of the smartphone market in the countrty remained flat at 27% compared to a year ago, with only Samsung as the only strong performer. Meanwhile, Chinese vendor shares jumped from 15% to 22% year on year.

For the third quarter, IDC said it expects the Philippine smartphone market to stay subdued due to an increase in component prices, weaker currency, and forthcoming exits of a number of smartphone vendors. Shipments are expected to pick up during the last quarter of the year, with pre-Christmas buying kicking in.

“As the battle for mindshare intensifies, top global and local mobile phone vendors were left with no recourse but to double down on marketing spending to maintain the brand presence. Aside from the tried-and-tested formula of appointing A-list celebrity endorsers and conducting road shows, new marketing strategies such as co-branding and strategic product placements are being explored by local and global vendors as means to remain competitive against Chinese vendors,” Mr. Dominguez added.

Mr. Dominguez told BusinessWorld that they expect leading local vendors to at least maintain the market shares in the short term.

“These vendors have already made adjustments on their marketing and pricing strategies to combat increased aggression from big Chinese and global vendors,” Mr. Dominguez said in an e-mail.

Smaller vendors, however, face prospective market exits in the face of Chinese and global aggression: “As for smaller local vendors, some of them have already shown signs of weakening and we are looking at possible exits of a number of these after a few quarters.” — PPCM

Fisheries output decline narrows in Q2 — PSA

TOTAL FISHERIES production declined year on year in the second quarter, according to a report by the Philippine Statistics Authority (PSA).

According to PSA’s second quarter Fisheries Situationer, the volume of production in fisheries declined in the April-June period by 1.36% to 1.1 million metric tons (MT), which was nevertheless an improvement from the 9.07% decline registered in the same period last year.

Total output of commercial fisheries — which contributed around a quarter of total volume — posted the largest decline among the major sectors at 11.89% to 287,031.61 MT.

“The 11.89% decline in commercial fisheries was due to less unloading of species in Navotas Fish Port brought about by occurrence of frequent rain that hampered fishing operations in surrounding marine waters of Antique, Bataan, Zambales and the Visayan Sea,” the PSA report read.

The volume of catch by municipal fishermen, meanwhile, was little changed at minus 0.69% year on year to 303,079.2 MT.

“Reduced unloadings in Palawan resulted from the shifting of some fishermen to construction work as laborers and the effect of illegal fishing activity such as dynamite and cyanide fishing and use of nets with fine mesh size,” the situationer read. Growth in aquaculture output, on the other hand, was 4.94% to 519,801.6 MT.

By species, overall production of flying fish (bolador), declined by 24.61% followed by round scad (galunggong, -19.44%); frigate tuna (tulingan, -17.55%); tiger prawn (-14.6%); squid (-13.89%); Indo-Pacific mackerel (hasa-hasa, -13.52%); Indian sardines (tamban, -12.74%); yellowfin tuna (tambakol/bariles, -11.81%) and anchovies (dilis, -10.11%).

Among the regions, the National Capital Region weighed heaviest on the second quarter decline as its volume of production plunged by 38.93% to 32,937.94 MT. Production in Central Visayas and Eastern Visayas fell as well with downturns of 15.51% and 13.57%, respectively.

“The decline in fish production this second quarter is a normal trend as the production is normally affected by weather conditions — both in wild-caught and farmed fish and other aquatic products,” said Eduardo B. Gongona, Bureau of Fisheries and Aquatic Resources National Director.

Asked on the industry’s outlook for the coming quarters, Mr. Gongona cited “inclement weather” as a major determinant for the fishing industry’s direction on growth.

“We are not that bullish with regard to production from capture fisheries, commercial and municipal. Under the multi-stakeholder formulated Comprehensive National Fisheries Industry Development Plan for 2016-2020, growth projections are set at 5% and 1% respectively,” he said.

“Growth is expected to come mostly from aquaculture – particularly of five major commodities which include bangus (milkfish), tilapia, seaweed, crab and shellfish.”

The director noted the heavy exploitation of the country’s fishing grounds over the last four decades and that government agencies have “put more teeth” into their campaign against illegal, unregulated and unreported fishing.

“We are confident that with our intensified campaign against illegal and destructive fishing, strict observance of closed fishing seasons, adoption of climate-resilient aquaculture technologies and reduction of post-harvest losses, we would be able to maintain, if not, reduce possible decline in production,” Mr. Gongona added.

According to the PSA’s national accounts, the fisheries subsector accounts for just 1% of the country’s economic output. — Ranier Olson R. Reusora

Best to be Swiss if you’re eating steak in Zurich

SWISS meat prices are pretty hard to stomach at first glance.

At $49.68, Switzerland tops the ranking for a kilogram of beef leg round. Yet that seemingly eye-watering sum – around 150% higher than the world average – gets more reasonable when you factor in what locals get paid: An unskilled worker needs just 3.1 hours to afford it.

The 2017 Meat Price Index is a foray into the study of relative price levels of goods and labor. According to publisher Caterwings, the cost of beef, fish, chicken, pork, and lamb in each country’s biggest cities were compared to the minimum wage and then calculations were run for affordability. In those where there is no federal statutory minimum, it used the average pay for unskilled labor.

“This illustrated that Switzerland has the highest meat prices, while Ukraine has the lowest,” Caterwings said, adding that despite low prices in some countries, someone on minimum wage has to put in long hours to buy a piece of meat, while “those in Norway would need to work less than one hour on minimum wage to afford the same.”

In Indonesia, people have to toil for 23.6 hours to purchase the same amount of beef as in Switzerland, though there it costs just $9.01. Buying a kilo of chicken breast in Indonesia involves 7.3 hours of work.

For white fish, the affordability laggard was Egypt, with a kilo requiring 44.2 hours of labor. That compares to little more than an hour of work in Sweden, despite the cost there being higher.

Back in Switzerland, where almost 51 kilos of meat were consumed on a per capita basis last year, the price disparity with neighboring countries has led to regular meat smuggling across the border. And supermarket chain Coop this week started offering burger patties and meatballs made out of beetle larvae as an alternative to beef and pork – just don’t ask about the prices. – Bloomberg

Restaurant chain Rico’s Lechon takes closure order to court

FOLLOWING THE closure of its Rico’s Lechon branches and plant in Cebu City, allegedly for absence of a business permit, 3MRS Dionson Corp. is bringing the issue to court. In its petition for mandamus, Rico’s Lechon said it is the City Hall that failed to act on its business permit application for 2017 despite the company’s compliance with all requirements. It asked the court to order Mayor Tomas R. Osmeña and City Treasurer Tessie C. Camarillo to grant the business permit. “Until the filing of this petition, Mayor Osmeña failed and continues to fail to issue business permit to petitioner. He is hell bent in closing petitioner’s business operation by using the lame excuse that petitioner is operating without business permit when it is he who failed to act on petitioner’s application despite full compliance,” the petition reads. The company is also asking the court to order the reopening of its commissary in Barangay Talamban, which the city government closed last Friday. During the hearing on Tuesday, Regional Trial Court Judge James Stewart Ramon E. Himalaloan directed Mr. Osmeña and Ms. Camarillo to comment on the petition within 15 days. City Legal Office head Joseph U. Bernaldez said he is confident that the court will rule in favor of the city. “If you defraud a bank or a government, does not mean you are no longer guilty as long as you pay or comply? That means all the business now cheating the city can just wait until they (are) caught? Just comply and everything will be ‘okay’?” he told The Freeman. Last week, the owners of Rico’s Lechon told reporters that the city government came after them after they severed ties with Mr. Osmeña’s daughter-in-law as business partner. — The Freeman

Donald Trump and Ninoy Aquino

Republican Donald J. Trump blamed on Tuesday “both sides” for the violence that had occurred during a white supremacist rally on Aug. 12, in Charlottesville, Virginia. His remark drew widespread condemnation from almost all sectors, including some Republicans and sober leaders worldwide.

In February 1986, a few days after the violence-ridden, fraud-tainted snap presidential elections called by Ferdinand Marcos at the behest of the Ronald Reagan administration, Republican Reagan made a startling announcement on TV on the elections monitored by international election watchdogs. On the advice of Paul Manafort, a paid publicist of Marcos, Reagan had the gall to make a statement from the White House that “cheating occurred on both sides.” Note how both Republicans tried to justify the violence by blaming “both sides.”

Manafort was commissioned by the Marcoses to help in the dictator’s losing campaign in the snap presidential elections despite Marcos’s guns, goons, and gold. Those snap presidential elections were called by an ailing Marcos after the US had seen the dictator losing grip on the country which he had ruled with an iron fist through martial law starting in September 1972. Manafort is the same shadowy fellow whose house was recently raided by FBI agents in search of evidence of Russian meddling in the US presidential elections.

The comments of both Republicans are so eerily similar that one cannot help but think that, perhaps, Republicans will generally not come with up with definitive and unequivocal statements condemning evil. It appears that, especially on the issue of racism, Republicans have lost sight of their core ideals, which had their beginnings with Abraham Lincoln, who had condemned slavery.

Although some Republicans did come out strongly to decry Trump’s remarks, which obviously show Trump’s own (im)moral position and played to the coalition of racists, white supremacists, neo-Nazis and David Duke-type Ku Klux Klan sympathizers who had supported his bid for the White House, the Republican party will surely pay the price for Trump’s irrational behavior in the mid-term elections in 2018.

All throughout his life, Trump has never been known as an advocate of social justice and civil rights. He had always been the brash businessman whose businesses were fuelled by hype and his unconventional style of campaigning and governance that appealed to the disaffected and left-out of America’s strong economic development during Barack Obama’s presidency. As an American educator once told me, the ones who were disaffected and left out were the same people who were mostly unwilling to get a good education and instead blamed immigrants, who crowded them out of the job market; technology, which they could not appreciate because of lack of education; and overseas companies for their superior ways of doing business.

Listening to Trump, whose father, based on an unattributed photograph, is shown in the middle of a 1927 Ku Klux Klan rally (whether as a bystander or a participant, no one can tell) triggers in me the same anger that Reagan created when he said that “cheating occurred on both sides.”

The snap presidential elections had its origins in the successful anti-Marcos movement, which started right after his declaration of martial law in 1972 but reached fever pitch when his main rival, former senator Benigno (Ninoy) Aquino, Jr., was executed on Aug. 21, 1983. The assassination, which I would rather call an execution, occurred despite the security blanket that enveloped the then Manila International Airport supposedly to protect the returning charismatic opposition leader.

So, as we decry the indecisiveness, evasiveness, and lack of moral moorings of both Trump (and his lack of basic human decency and respect for civil rights and the law) and Reagan, and of advisers like Manafort and Steve Bannon on the Charlottesville and snap elections issues, we remember Ninoy Aquino, who made a decisive statement by dying for the Filipino.

Three days ago, we observed the 34th anniversary of the execution of Ninoy.

For those of us who were around when Marcos declared martial law, when Ninoy was executed, when Corazon Aquino rose to power, and when Marcos fled the country, Trump’s insensitive remarks (which had some important sectors of corporate America abandoning him) revive memories of Marcos’s crony, Reagan. And the entry of Reagan into the picture serves as a reminder of how the Teflon President almost ensured the continued abusive rule of Marcos had it not been for pressure to drop Marcos emanating from all sources, including the decent Republican party members.

If anything positive has resulted from this latest evidence of Trump’s unsuitability for the presidency of the most powerful nation, it is making the struggle of forgetting Ninoy Aquno’s sacrifice less formidable. Our youth, who do not remember much of Ninoy Aquino and EDSA, should note how Trump offers an example of everything that Ninoy Aquino wasn’t.

Dr. Philip Ella Juico teaches Strategic Management and Sustainable Business in the MBA and DBA programs, respectively, of the Ramon V. Del Rosario College of Business of De La Salle University. He was Secretary of Agrarian Reform during the administration of President Corazon C. Aquino, and Chairman of the Philippine Sports Commission under President Fidel V. Ramos.

philip.juico@yahoo.com.ph

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