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US leads sanctions push after N. Korea ‘escalation’

UNITED NATIONS — The United States pushed for tougher sanctions on North Korea at the UN Security Council on Wednesday, warning the isolated regime’s launch of an intercontinental ballistic missile (ICBM) had drastically narrowed the path for diplomacy.

In a hard-hitting address, US Ambassador Nikki Haley said Tuesday’s ICBM test had made “the world a more dangerous place,” and reiterated that Washington was ready to use force if need be to deal with the threat of a nuclear-armed Pyongyang.

Tuesday’s launch — styled by leader Kim Jong-Un as a gift to “American bastards” — marked a milestone in Pyongyang’s decades-long drive for the capability to threaten the US mainland with a nuclear strike, and poses a stark foreign policy challenge for Donald J. Trump.

The US president had dismissed the idea of the North possessing a working ICBM, vowing it “won’t happen,” but experts said the missile could reach Alaska or even further towards the continental US.

At the UN, Ms. Haley called the launch “a clear and sharp military escalation,” and US and South Korean forces fired off missiles Wednesday into the Sea of Japan simulating a precision strike against North Korea’s leadership.

Washington had “considerable military forces,” Ms. Haley said. “We will use them if we must.”

But the US focus, she told the council, was to push through tighter sanctions, and it would submit a new draft resolution within days.

In all, six sets of sanctions have been imposed on North Korea since it first tested an atomic device in 2006, but have failed to prevent its military advances.

New measures could target countries that continue to trade with North Korea, curb oil exports to the isolated country, tighten air and maritime restrictions and impose travel bans on its officials.

Ms. Haley singled out China — increasingly in the US administration’s crosshairs as the North’s sole major ally and economic lifeline — as key to any diplomatic solution, only days after Mr. Trump said Beijing’s efforts had failed.

“We will work with China,” Ms. Haley said, “but we will not repeat the inadequate approaches of the past that have brought us to this dark day.”

The US drive won backing from France, but raised immediate protests from fellow permanent Security Council member Russia, whose Deputy Ambassador Vladimir Safronkov warned that “sanctions will not resolve the issue.”

China’s Ambassador Liu Jieyi once more pushed Beijing’s alternative proposal for talks based on a freeze of North Korea’s missile and nuclear tests, in exchange for a halt to US-South Korean military drills — which has been rejected repeatedly by Washington and Seoul.

NUCLEAR ATTACK
Washington and Seoul are in a security alliance, with 28,500 US troops stationed in the South to protect it.

In a meeting with German Chancellor Angela Merkel ahead of the G20 summit, South Korean President Moon Jae-In said the level of the North’s nuclear and missile capabilities was already a problem, “but the bigger problem is that the speed of progress is far faster than expected.”

Sanctions and pressure, he added, should be a means to push the North to the negotiating table, “and should not break the peace itself.”

The Hwasong-14 missile only traveled little more than 900 kilometers (560 miles) to come down in the Sea of Japan, but the altitude it reached — more than 2,800 kilometers according to Pyongyang — demonstrated it can travel far further.

South Korea’s Defense Minister Han Min-koo put its range at 7,000 to 8,000 kilometers — far enough to put US Pacific Command in Hawaii within reach.

The North, which says it needs atomic weapons to defend itself against the threat of invasion, said the test proved the missile’s reentry capabilities and it could carry a heavy nuclear warhead.

Questions remain over the missile’s precise capabilities, but concerns over its implications are mounting in the South. “A North Korean ICBM carrying a nuclear warhead is a game-changer,” the JoongAng Ilbo said in an editorial Thursday.

“What worries us is the uncertainty of whether the US would defend us if North Korea attacks Seoul. We cannot be sure if the US would risk a nuclear attack on New York or Los Angeles.” — AFP

Public satisfaction with Duterte peaks

By Raynan F. Javil, Reporter

PRESIDENT Rodrigo R. Duterte (PRRD) marked his first year in office with a fresh personal record-high net satisfaction rating, buoyed by increases in the Visayas and Luzon areas outside Metro Manila that offset a sharp drop in his bailiwick, Mindanao, which nevertheless kept the best score, a Social Weather Stations (SWS) survey showed.

Results of the survey — conducted on June 23-26 via face-to-face interviews with 1,200 adults nationwide and with sampling error margins of ±3 points for national percentages, as well as ±6 points each for Metro Manila, “Balance Luzon,” the Visayas and Mindanao — found 78% satisfied, 10% undecided and 12% dissatisfied with Mr. Duterte’s performance in the second quarter.

That yielded a net satisfaction rating of +66 (% satisfied minus % dissatisfied), classified as “very good” and marking a new personal record high though just three points more than the March survey’s +63 (75% satisfied against 12% dissatisfied).

SWS classifies net satisfaction ratings of at least +70 as “excellent”; +50 to +69 as “very good”; +30 to +49, “good”; +10 to +29, “moderate”; +9 to -9, “neutral”; -10 to -29, “poor”; -30 to -49, “bad”; -50 to -69, “very bad”; and -70 and below as “execrable.”

Mr. Duterte’s net satisfaction rating rose by one grade and 11 points to an “excellent” +73 (83% satisfied, 10% dissatisfied) in the Visayas from +62 (75% satisfied, 12% dissatisfied, rounded off) in the March survey.

It stayed “very good” in “Balance Luzon”, rising seven points to +58 (73% satisfied, 15% dissatisfied) from +51 (68% satisfied, 17% dissatisfied).

Net rating in Mindanao dropped 12 points — although it stayed “excellent” — to +75 (83% satisfied, 8% dissatisfied) from +87 (89% satisfied, 3% dissatisfied, rounded off).

It stayed “very good” in Metro Manila, “hardly moving” at +63 (77% satisfied, 13% dissatisfied, rounded off) from +64 (76% satisfied, 12% dissatisfied).

It also remained “very good” across socioeconomic classes. It was highest among class E respondents at +67, up seven points from the first quarter’s +60; +59 among ABC respondents, edging up just three points from +56 and +66 in class D from +64.

Net rating similarly stayed “very good” for both genders, though it was up eight points to +69 from +61 among women and hardly changed at +63 from +65 among men.

Net public satisfaction rating stayed “excellent” among respondents who were college graduates, flat at +76 for both comparative quarters, and “very good” for those with less education: up eight points to +68 from +60 among those that did not graduate from elementary level, and hardly changed at +66 from +64 among elementary school graduates and at +62 from +60 among high school graduates.

MARTIAL LAW SUPPORTED
Presidential Spokesperson Ernesto C. Abella noted in a statement that “[c]onducted last June 23-26 — or a month after PRRD placed martial law on the whole island of Mindanao — the finding shows tacit public support for the President’s action following the rebellion in Marawi.”

Fighting in Marawi City between government forces and militants who have pledged allegiance to the Islamic State has dragged for more than a month since May 23.

University of Santo Tomas political science professor Edmund S. Tayao said separately that survey results were a “reflection of how the public responded to the declaration of martial law.”

“The variation of support from the different main islands suggests that there’s general support for martial law, or at least in many parts of the country, including Luzon and the Visayas,” Mr. Tayao said.

“The 12% drop [in Mindanao] could be a mixed reaction, not only to the declaration of martial law but also to how the President has been expected to bring so many of his promises in Mindanao,” he added.

“Those in Mindanao expect more from the President,” he noted, “compared to those in Luzon and Visayas.”

Could America shield Alaska from a North Korean missile?

WASHINGTON — It is every Alaskan’s nightmare: finding themselves within range of a North Korean missile. As that fear came one step closer to reality this week, America’s ability to block an incoming attack is under scrutiny.

On Tuesday the northwestern US state awoke to the news that Pyongyang had test-fired an intercontinental ballistic missile (ICBM) which — though it came crashing down in the Sea of Japan — had a probable range of over 5,500 kilometers (3,400 miles), enough to reach Alaskan shores.

The US military has faith that its high-tech defensive systems could fend off any attack from North Korea — at least for now.

“It’s something we have confidence in,” said Pentagon spokesman Navy Captain Jeff Davis, who called the latest development a “nascent threat.”

But other observers are not so sure, rattled by the pace of Kim Jong-Un’s missile program and his stated aim of building a nuclear-tipped ICBM.

“Now more than ever, it’s imperative for Alaskans and the rest of the nation that we be prepared,” tweeted Senator Dan Sullivan, one of several Alaskan congressmen who backed a bipartisan bill last month aimed at expanding US missile defenses.

The state of 750,000 people already hosts a key element of the country’s current defense system.

The Ground-based Midcourse Defense (GMD) system — installed at Fort Greely, about 100 miles outside Fairbanks in Alaska, and California’s Vandenberg Air Force Base — will comprise 44 missile interceptors by the end of the year.

But if the backers of the Advancing America’s Missile Defense Act of 2017 have their way, the government would authorize an additional 28 ground-based interceptors at Fort Greely.

Among the bill’s co-sponsors is Alaskan Congressmen Don Young, who believes “the recent actions by North Korea, a rogue and irrational regime, underscores the importance of Alaska’s missile defense systems,” his office said in a statement.

MISSILE LEAKAGE
The catastrophic scenario of having to stop an incoming ICBM as it hurtles through space was put to the test in May, when the military successfully launched a GMD interceptor from the California base.

The missile blasted outside Earth’s atmosphere and smashed into a dummy ICBM target, destroying it in a direct collision — a move akin to hitting a bullet with another bullet.

But the GMD system has had a checkered record in previous tests — failing in earlier launches against slower-moving targets.

And it could be overwhelmed by a barrage of incoming missiles.

That is why Joel Wit, a co-founder of the 38 North program of the US-Korea Institute at Johns Hopkins University, said he was not fully confident in US anti-missile capabilities.

He sees a risk that Mr. Kim could build enough missiles to overwhelm US defenses — and that one could slip through the defensive net in a phenomenon known as “leakage.”

“In the case of a conflict, leakage with nuclear weapons is not a good thing,” Mr. Wit told AFP.

Mr. Wit had previously said he didn’t think North Korea would be able to deploy any nuclear-tipped ICBMs until late 2020 or soon after, but all bets are off given the latest test.

“It’s quite possible the North Koreans could deploy much sooner than then, and do that for the shock effect,” he said.

Experts do not think Mr. Kim has managed to miniaturize a warhead to put on an ICBM, though Mr. Kim has repeatedly stated that is his goal.

“Clearly they are working on it,” Pentagon spokesman Mr. Davis said.

WHAT OTHER DEFENSES
Aside from the GMD, the US and its allies also have at their disposal what is known as the Aegis Ballistic Missile Defense System (AEGIS).

The ship-based system’s highly sensitive radars and sensors feed ICBM-tracking data to the GMD facilities in California and Alaska, and AEGIS is itself capable of intercepting shorter-range missiles.

Retired vice-admiral Pete Daly, who now leads the United States Naval Institute, said the AEGIS system may also one day have a limited ability to intercept ICBMs.

“There is some progression and capabilities here that folks are working on,” he told AFP.

In the meantime, the US military this year began deploying the Terminal High Altitude Area Defense (THAAD) system to South Korea, capable of destroying short, medium and intermediate-range missiles in their final phase of flight.

The move infuriated China, which has argued the deployment would further destabilize the situation on the Korean peninsula.

The US and its allies South Korea and Japan also have Patriot Advanced Capability-3 interceptor batteries. But these are designed to protect against a regional threat and would have limited effect against an ICBM.

Integrating all three systems — THAAD, Aegis and Patriot — is another key proposal in the legislation championed by Messrs. Sullivan and Young. — AFP

Infrastructure spending picks up amid concerns

By Elijah Joseph C. Tubayan and Ian Nicolas P. Cigaral, Reporters

STATE infrastructure and other capital outlays surged in May, according to the Department of Budget and Management (DBM) whose head yesterday said efforts to unclog spending bottlenecks have begun to pay off.

construction worker Araneta
Michael Varcas / Philippine Star

Yesterday also saw some economic managers selling the administration’s “hybrid” infrastructure financing scheme — involving official development assistance (ODA) and government funding for the construction phase and reserving public-private partnerships (PPP) for operation and maintenance — to an audience of foreign and Filipino businessmen at the “Re-Thinking Infrastructure Building” forum in Makati City.

The administration of former president Benigno S. C. Aquino III had focused on PPP and has been cited by multilateral agencies like the Asian Development Bank as a model for other developing economies struggling to bridge their own infrastructure gap. But the current government of President Rodrigo R. Duterte has argued that it typically took about thee years under that framework for projects to move from conceptualization to construction.

Infrastructure and other capital outlays totaled some P46.2 billion in May, 38.1% from April’s P33.5 billion and 31.4% from May 2016’s P35.2 billion.

That took year-to-date outlays to P197.2 billion, about 8.1% more than the year-ago P182.4 billion, compared to a mere 2.6% increment in the four months to April.

In its monthly assessment of government disbursements, DBM said attributed the spike to “the completed road construction, repair and rehabilitation, and flood-control infrastructure implemented by the DPWH (Department of Public Works and Highways), as well as the requirements for the purchase of anti-submarine helicopters under the AFP (Armed Forces of the Philippines) Modernization Program.”

The government plans to spend about P847.22 billion this year on infrastructure alone, equivalent to 5.32% of gross domestic product (GDP), as part of its “Build, Build, Build” program to disburse a total of P8.44 trillion for this purpose from 2017 to 2022, when the current administration ends its term. In 2022, spending on infrastructure alone should hit P1.899 trillion, equivalent to 7.45% of GDP.

‘I TOLD YOU…’
Budget Secretary Benjamin E. Diokno said his close watch on line departments and state agencies has begun to yield results.

“I told you, kasi lagi ko sila kinukulit (because I have been pestering them). I monitor their performance every month and I talk to them constantly,” Mr. Diokno said on the sidelines of the forum yesterday in Makati City.

“It will pick up. Construction is like an S-curve. It starts slow then towards the end, it will go fast… the second half will be much better than the first half.”

Asked whether the year’s P847.22-billion infrastructure spending program was doable, Mr. Diokno replied: “We will shoot for at least 90% — that’s already high enough.

DBM’s own report said “[d]isbursements are expected to gradually gather speed in the succeeding months.”

“Seasonally, spending usually picks up during the third month of the quarter as line agencies speed up the utilization of their NCAs (notice of cash allocations) before they lapse at the last working day of the quarter…,” the department explained.

“Agencies are expected to implement catch-up plans or measures to recover from the delays encountered in the earlier months, and these could further improve their disbursement levels.”

BETTER THIS SEMESTER
In his own briefing in Malacañan Palace yesterday, Finance Secretary Carlos G. Dominguez III downplayed persistently slow pickup of government spending up to February, saying that major infrastructure projects approved by the National Economic and Development Authority (NEDA) Board since Mr. Duterte took office at end-June last year should spur disbursements this semester.

“It (disbursements) will pick up in the second half,” Mr. Dominguez said, beginning his briefing by declaring: “I am happy to report to you today that the nation is fiscally secure.”

“There will be a lot more construction in place,” he assured.

Mr. Dominguez admitted that bulding spending momentum from the previous administration is “taking… time”.

“You know, the government is like a train: before the train gets up to speed, you have to go a little bit of a way first and this administration has tried to keep up the momentum of the past administration,” the finance chief said.

“You know in the past administration, they stopped all the projects for the first two years [to ensure systems are more transparent]… Here we did not; we approved everything. So we are continuing moving ahead,” he added.

“We did not inherit a large backlog of projects. We have to build up our own projects… So these projects take time to get ahead, they’re very large. You need project studies and all of that, but they are going to be done.”

According to Mr. Dominguez, among the projects that will break ground this year is the P12.55-billion Clark International Airport Expansion Project that was approved by the NEDA Board on Wednesday last week together with other projects cumulatively worth some P304.45 billion.

Analysts of Moody’s Investors Service and First Metro Investments Corp. on July 5 separately said they have tempered their own projections for Philippine GDP growth this year to 6.5%, matching the low end of the government’s 6.5-7.5% target and slowing from 2016’s 6.9%.

Yesterday’s forum saw Socioeconomic Planning Secretary Ernesto M. Pernia assure that the private sector will continue play a key role in the government’s infrastructure development program. “Our local construction industry has the most to gain, regardless of funding source. Of course, the government expects that participating private contractors are well-qualified based on standards set under government procurement, ODA sources and PPP financiers,” Mr. Pernia said in his presentation, adding that he expects the NEDA Board to approve 18 more major projects this year on top of the 18 that have bagged such final green light under this administration.

Italian Chamber of Commerce in the Philippines Executive Director Lorens Ziller, who gave the forum’s opening remarks, said in an interview afterwards: “Definitely we see that there is a lot of interest, a lot of technology needed, which involves foreign contractors.”

“Local players don’t have the expertise like those of the Italians, Germans, Japanese or the Koreans,” Mr. Ziller noted.

“So, definitely these projects would go faster and efficiently, especially with foreign contractors.”

Putin attacks protectionism on eve of G20

BERLIN — Russian President Vladimir Putin attacked sanctions against his country and called for an end to trade protectionism, in an editorial published in Germany Thursday ahead of the Group of 20 (G20) summit.

Sanctions against Russia “are not just short-sighted but go against the principles of the G20 for cooperation in the interests of all countries,” Mr. Putin wrote in the business daily Handelsblatt.

“I am convinced that only open trade relations, based on uniform norms and standards, can stimulate the growth of the world economy and promote an improvement in relations between states,” he added.

The two-day G20 summit, starting in Hamburg on Friday, will bring together the leaders of the world’s biggest developed and emerging economies.

The United States and the European Union and other countries have imposed a raft of sanctions against Russia for its seizure of Crimea in 2014 and its backing for pro-Russian separatists in eastern Ukraine.

Russia has responded with measures of its own, including a ban on western food imports.

Last month, the United States added 38 individuals and entities to its sanctions list, prompting Russia to cancel a meeting with senior US diplomats and its foreign minister, Sergei Lavrov, to warn the new measures “seriously threaten the whole relationship” between Moscow and Washington.

Mr. Putin is scheduled to meet with US President Donald J. Trump in Hamburg on Friday. — AFP

Japan credit rater maintains Philippines’ investment grade

A JAPAN-BASED DEBT WATCHER affirmed its credit rating for the Philippines on the back of the country’s sustained growth momentum and sound fundamentals despite infrastructure deficiencies and terror threats that cloud investor sentiment.

In a statement, the Japan Credit Rating Agency, Ltd. kept its “BBB+” rating — two notches above minimum investment grade — with a “stable” outlook for the Philippines’ foreign currency and local currency long-term issuer ratings. The outlook signals that the rating will likely be maintained in the next 12-18 months.

“The ratings mainly reflect the country’s high level of economic growth underpinned by expanding domestic demand, resilience to external shocks supported by declining external debt and accumulation of foreign exchange reserves, and continued reduction of government debt burden,” JCR’s statement read.

“On the other hand, the ratings are constrained by the country’s challenging investment environment, in particular its inadequate infrastructure albeit some improvement in recent years,” it added.

“The country is now going through a process of reconciling expansion of infrastructure spending with fiscal consolidation through tax reforms. Taking these into consideration, JCR has affirmed its ratings with a stable outlook.”

JCR was referring to the Duterte administration’s “Build, Build, Build” initiative that will involve some P8.44 trillion in public spending on infrastructure projects over the next six years in order to improve ease of doing business, thereby spurring economic growth.

The Philippine economy expanded by 6.4% in the first quarter, below the state’s official 6.5-7.5% target band for 2017 but still faster than most major Asian economies with the exception of China.

JCR said the momentum will likely be sustained by upbeat consumer spending and capital formation, especially as the government ramps up infrastructure disbursements.

The debt watcher likewise acknowledged the Philippines’ hefty gross international reserves — reaching $82.066 billion as of May — as well as the declining share of debt relative to gross domestic product, which bolsters the the country’s resilience to potential external shocks.

However, the credit rater flagged “sociopolitical” concerns, particularly the raging battle for Marawi City and the declaration of martial rule over the entire Mindanao, that could hit investor sentiment.

“Increasing both the inflow and stock of inward FDI (foreign direct investments) is the country’s long-term challenge. JCR holds that the government needs to accelerate its efforts to improve the investment climate in order to attract such long-term, non-debt-creating capital inflows,” added credit analysts Yoshihiko Tamura and Shinichi Endo.

Other major debt watchers — S&P Global Ratings, Fitch Ratings and Moody’s Investors Service — have affirmed their respective investment-grade credit ratings for the Philippines in recent months, citing the country’s sustained growth momentum even as they too have lately cited increasing political risks under the current administration. — Melissa Luz T. Lopez

Singapore PM’s siblings say ready to settle dispute

SINGAPORE — The siblings of Singapore’s Prime Minister Lee Hsien Loong welcomed on Thursday moves to settle a row over their late father’s house privately, but also said any unresolved dispute over his will should be thrashed out in court.

Singaporeans have been riveted since mid-June by a public battle between the heirs of Lee Kuan Yew, Singapore’s long-serving first prime minister, over whether to demolish the old family home or let the government decide whether it should become a heritage site.

Lee Kuan Yew’s daughter, Lee Wei Ling, and his youngest son, Lee Hsien Yang, insist that the house should be demolished in accordance with their father’s will. Prime Minister Lee has said the government must decide what to do with the property.

The siblings had accused their elder brother of abusing his powers, prompting the prime minister to call an extraordinary special sitting of parliament on Monday and Tuesday to “clear the air” over an issue that some people say has tarnished Singapore’s image.

The premier said that debate failed to find any substantiated evidence of abuse of power, but he wanted to avoid taking his siblings to court for defamation.

Responding in a seven-page statement posted on Facebook, Hsien Yang and Wei Ling described the parliamentary debate as a “whitewash” and said they had more evidence of abuse of power that they would only divulge if there was an independent investigation.

However, they also reacted positively to the prime minister saying that he wanted to settle the matter privately.

“We therefore welcome Hsien Loong’s stated desire on 4 July 2017 to manage his disagreement with us in private … without the involvement of lawyers or government agencies,” they said in the statement.

They also repeated allegations of abuse of power in a separate 10-page document titled “Evidence,” without making any fresh revelations.

“It seems that releasing further evidence on social media at this time will only muddy the facts,” they said, and that there was “much evidence” they had not made public.

“We reserve this to show to a truly open and independent investigation, if there ever is one,” they said.

QUESTIONED WILL
Before his death in 2015, Lee Kuan Yew had made public his desire for the humbly furnished home at 38 Oxley Road, near the bustling Orchard Road shopping district, to be demolished rather than turned into some kind of museum.

He stated that in his last will, but the prime minister has said there were “deeply troubling circumstances” over how the document was drawn up.

The prime minister’s siblings said in their latest Facebook posting that any dispute over the will should be resolved in court if it could not be settled otherwise.

Prime Minister Lee has said that, while he personally favored the house being demolished, it was up to the government to decide whether it should become a heritage site.

He maintains that his father was aware that the government might make that decision, and was prepared to consider alternatives if the government decided the site should be preserved in any way.

The siblings dispute that account.

“Were our father alive today, he would be furious about this situation. His wishes are crystal clear: He wanted to demolish the house because he knew it was the right thing for Singapore,” they said in their latest statement.

“He did not want Singaporeans to create a cult around him.”

The prime minister has recused himself from a committee looking at options for the house, but his siblings say the committee is made up of subordinates who cannot be impartial.

“If Hsien Loong wishes to challenge the will, the correct forum was and is the courts,” they said.

Prime Minister Lee was in Germany on Thursday for a meeting of the G20 countries. — Reuters

Government issues tender for 250,000 tons of imported rice

THE STATE grains buyer issued on Thursday an international tender to buy 250,000 tons of 25% broken long grain white rice, rushing to boost thinning government stockpile.

Bids must be submitted by July 25, when the sealed offers will be opened, the National Food Authority (NFA) said.

The Philippines — one of the world’s biggest rice importers — usually buys from major suppliers Vietnam and Thailand.

However, this time the tender is also open to private suppliers from other countries including Pakistan and top supplier India.

State inventories have shrunk to the least in more than three years, just enough to cover five days of national requirement. But local retail prices remain largely stable, thanks to still abundant stocks held by the private sector.

The NFA is mandated to maintain a 15-day buffer stock at any given time and a minimum of 30 days during the lean harvest season from July to September.

The entire 250,000-ton shipment should arrive between August and September, the agency said. — Reuters

Philippine stocks post uptick, buck Asian trend

THE LOCAL bourse bucked the trend as major Asian markets saw a decline on Thursday, after minutes from the US Federal Reserve’s last meeting did not provide a clear picture on the pace of future interest rate hikes.

The Philippine Stock Exchange index (PSEi) added 39.47 points or 0.50% to close at 7,888.31 on Thursday. The all-shares index also rose 0.51% or 24.15 points higher at 4,736.85.

“The market received a shot in the arm from foreigners who posted strong net foreign buying of P507 million, reversing two days of net selling,” RCBC Securities, Inc. said in its stock market daily report.

Harry G. Liu, Summit Securities, Inc. president, said the market is expected to continue hovering sideways in the next two weeks, on the lack of fresh leads.

“The market so far is still consolidating. It’s waiting for a good news to perk it up, right now we’re just within the technical movement, between the support of 7,750 to 7,800, that’s the consolidation. If anything positive can come it’s definitely the opening of the Congress on the 24th for the tax package, so that’s as soon as possible,” Harry G. Liu, Summit Securities, Inc. president, said in a phone interview.

In a mobile phone message, Luis A. Limlingan, managing director of Regina Capital Development Corp., said the market went on bargain hunting mode as the US resumed trading after the July 4th holiday.

RCBC Securities noted the PSEi has continued to stay within its trading range of 7,800-7,900 since the start of this week.

Sectoral counters, except for mining and oil, were in the green on Thursday. Financials added 9.20 points or 0.47% to 1,947.95; while industrials went up by 42.76 points or 0.39% to 11,147.21.

Holding firms rose 51.16 points or 0.65% to 7,924.13, while services climbed 3.92 points or 0.23% to 1,697.06, and property jumped 14.24 points or 0.39% to 3,647.15.

The mining index slipped 0.16% or 20.44 points to end at 12,628.40.

Value turnover reached P7.48 billion on Thursday, up 0.58% from the previous day’s P6.46 billion.

Advancers outnumbered losers 86 to 68, with 102 unchanged.

Shares in Metro Pacific Investments Corp. went up 4% to end trading at P6.69 apiece, amid speculation the conglomerate will receive a favorable arbitration ruling in its dispute over water rates with the government regulator.

Other gainers included Ayala Corp. (+1.40%), LT Group (+2.22%), DMCI Holdings (+1.66%) and SM Investments Corp. (+0.19%).

Meanwhile, most Asian equities retreated as energy shares fell and investors absorbed details of the US Federal Reserve’s most recent meeting.

The MSCI AC Asia Pacific Index lost 0.2% as of 4:35 p.m. in Hong Kong, swinging between losses and gains earlier. The benchmark Asian stocks gauge has declined 0.4% this week.

Equities from Japan to Singapore and Australia fell, while those in India and Indonesia advanced. — Arra B. Francia with Bloomberg

Duterte denies making deal to end Marawi crisis

PRESIDENT Rodrigo R. Duterte on Thursday, July 6, dismissed claims by a prominent Muslim leader that endeavoring to negotiate with Islamic State (IS)-inspired Maute militants in Marawi City to end the bloody standoff.

Reuters reported on July 5 that Muslim leader Agakhan Sharief was approached by a “senior Duterte aide” to use his connections with Maute leaders to start back-channel talks after clashes erupted on May 23.

However, Mr. Sharief said the process was halted when Mr. Duterte in a May 31 speech declared he “will not talk to terrorists.”

In a media interview yesterday after visiting troops in the Mindanao province of Bukidnon, Mr. Duterte denied Mr. Sharief’s claims and described the cleric as a “pretender.”

“I’d never talk to terrorists — that’s one. I would never talk to criminals and to terrorists,” the President told reporters.

’Wag nila ako biruin na istorya-istorya lang tayo (Do not fool me and create stories). If there has to be peace, it would really be peace. ’Wag nyo ko laruin (Do not fool me),” he added.

But Mr. Duterte also said influential Muslim separatist groups might have already started a negotiation with the pro-IS bandits.

Clashes between government forces and the Maute militants broke out in Marawi in May — triggering what is arguably the biggest internal security crisis since the siege of Zamboanga City, also in Mindanao, in 2013.

Mr. Duterte, in his Proclamation 216, declared martial law and enforced warrantless arrests over the southern main island and its groups of islands.

The sustained aerial and artillery bombardments as well as deadly urban street combats at the heart of Marawi, the predominantly Muslim city and capital of Lanao del Sur province, has left 39 civilians dead, according to authorities.

The band of militants that attacked the city were led by Omarkhayam and Abdullah Maute, who had joined forces with Isnilon Hapilon — leader of the dreaded kidnapping-for-ransom gang Abu Sayyaf whom the IS reportedly appointed Southeast Asia’s “emir.”

During a brief truce at the end of Ramadan last month, eight Muslim leaders reportedly led by Mr. Sharief entered the conflict zone in the city to convince the Islamist fighters to release their civilian hostages.

According to Reuters, Mr. Duterte’s aide reportedly agreed that Mr. Sharief would accompany the Maute brothers’ influential mother, Farhana, to meet the President. Mr. Sharief said her sons requested she represent them in talks with Mr. Duterte.

But the talks did not proceed after the 60-year-old Farhana was arrested on June 9, Reuters also reported.

Mr. Duterte, in his speech before troops in Sultan Kudarat on June 7, confirmed that the Maute matriarch wanted to talk to him, but he refused.

“I will not talk anymore kasi marami na ang sundalo kong namatay. Marami nang police ko namatay. Putang ina, huwag mo akong bolahin diyan sa usap-usap na ’yan,” Mr. Duterte said.

(I will not talk anymore because many of my soldiers and police have died. Son of a bitch, don’t fool me with those talks.)

In a speech before local officials late Wednesday, amid reports that two of the hostages held by the Abu Sayyaf had been found beheaded, Mr. Duterte said, “I will eat your liver if you want me to. Give me salt and vinegar and I will eat it in front of you.”

“I eat everything. I am not picky. I eat even what cannot be swallowed.”

That Wednesday, Vietnam’s foreign ministry condemned the killing of the two hostages, both Vietnamese sailors.

For his part, Defense Secretary Delfin N. Lorenzana said yesterday the Maute matriarch had sent feelers to Mr. Duterte for talks, but emphasized the government maintains its no-negotiation policy on terrorists.

Medyo nahabag kalooban niya, gusto niya pagbigyan sana, but at that time masyado nang malalim gulo (The President pitied the Maute brothers’ mother. He would have accommodated talks, but the conflict at that time was already deep),” Mr. Lorenzana said.

“Talking to them does not mean negotiating,,” the defense chief added.

In a press briefing at Malacañang yesterday, Presidential Spokesperson Ernesto C. Abella said the Palace has “no verified reports” that there were efforts to initiate talks with extremists.

“Let me be clear that the position of the Palace and the President is not to negotiate with terrorists,” Mr. Abella said — with reports by AFP and Jil Danielle M. Caro

SC: President has discretion on scope of martial law

By Kristine Joy V. Patag
Reporter

THE President holds the “discretion to determine the territorial scope” of martial law, the Supreme Court (SC) said in its ruling on July 4, Tuesday.

Mr. Del Castillo said that: “In fine, it is difficult, if not impossible, to fix the territorial scope of martial law in direct proportion to the ‘range’ of actual rebellion and public safety simply because rebellion and public safety have no fixed physical dimensions,” said the 82-page decision penned by Associate Justice Mariano C. del Castillo and released on Wednesday.

In its decision, the Court presented the hypothetical situation of an armed struggle in the SC at Padre Faura, Ermita, Manila, with the attackers hoisting an ISIS flag.

“Based on the foregoing illustration, and vis-a-vis the nature of the crime of rebellion, could we validly say that the rebellion is confined only within the Court’s compound? Definitely not,” the Court said.

“The possibility that there are other rebels positioned in the nearby buildings or compound of the Philippine General Hospital (PGH) or the Manila Science High School (MSHS) could not be discounted. There is no way of knowing that all participants in the rebellion went and stayed inside the Court’s compound,” the SC added.

The decision further reads: “Their transitory and abstract nature defies precise measurements; hence, the determination of the territorial scope of martial law could only be drawn from arbitrary, not fixed, variables. The Constitution must have considered these limitations when it granted the President wide leeway and flexibility in determining the territorial scope of martial law.”

But four members of the high court, including Chief Justice Maria Lourdes P.A. Sereno, disagreed with the 11 others who ruled to uphold President Rodrigo R. Duterte’s Proclamation No. 216.

Ms. Sereno, Senior Associate Justice Antonio H. Carpio, and Associate Justice Alfredo Benjamin S. Caguioa voted to limit the declaration of martial law to specific areas in Mindanao.

Mr. Duterte had sufficient factual basis for issuing Proclamation No. 216 but only for the provinces of Lanao del Sur, Maguindanao and Sulu, Ms. Sereno said.

She added that the other justices “emaciated the power of judicial review” for awarding Mr. Duterte “excessive leeway,” which led to the “absurdity” of martial law in places as terrorism and rebellion-free as Dinagat Islands or Camiguin.”

“The military has said as much: there are places in Mindanao where the Mautes will never gain a foothold. If this is so, why declare martial law over the whole of Mindanao?” Ms. Sereno said in her 51-page dissenting opinion.

The same was echoed by Mr. Caguioa in his 24-page dissenting opinion as he said: “Extending martial law and the suspension of the privilege of the writ even to contiguous or adjacent areas cannot be done without a showing of actual rebellion in those areas or a demonstration that they are so inextricably connected to the actual rebellion that martial law and suspension of the privilege of the writ are necessary to ensure public safety in such places.”

Section 18, Article VII of the 1987 Constitution held that “in case of invasion or rebellion or when public safety requires it,” the President may declare martial law.

The deletion of the “imminent danger” as precursor to a martial law declaration is among the “safeguards” placed by the framers of the Constitution — as opposed to the 1935 Constitution under which the dictator Ferdinand E. Marcos declared martial law.

This omission and the limited time frame of 60 days for martial law are to prevent a repeat of the abuses of the Marcos dictatorship.

Mr. Caguioa said he concurs with Ms. Sereno that martial law covers only Lanao del Sur, Maguindanao and Sulu where the “inextricable connection” of the “actual rebellion being waged in Marawi” is shown.

Mr. Carpio, for his part, said Mr. Duterte’s proclamation of martial law should cover Marawi City only. He noted Mr. Duterte’s words, after issuing Proclamation No. 216, that “he declared Mindanao-wide martial law to prevent a spillover.”

“This only confirms that there is no actual rebellion outside Marawi City. However, the President feared a ‘spillover’ to other areas of Mindanao because ‘it is easy to escape’ from Marawi City, (given that) there is no division in terms of land,’” Mr. Carpio said.

Associate Justice Marvic M.V.F. Leonen was the lone dissenter in the 15-member court, as he moved that Proclamation No. 216 be declared unconstitutional.

“In conscience, I do not see the situation as providing for the kind of necessity for the imposition of martial law in Marawi, as well as throughout the entire Mindanao,” Mr. Leonen said in his 92-page dissenting opinion.

“The military can quell the violence. It can disrupt many of the planned atrocities that may yet come. It can do so as it had on many occasions in the past with the current legal arsenal that it has,” said Mr. Leonen, who earlier served in the government peace panel during the Aquino administration.

Mr. Duterte’s proclamation ends on July 23, the eve of his second State of the Nation Address (SONA).

The SC has yet to act on two other petitions filed against Proclamation No. 216, seeking to compel Congress to convene and deliberate on the declaration.

For his part, Albay Rep. Edcel C. Lagman in a statement on Thursday said he and other opposition legislators will file a motion for reconsideration.

Mr. Lagman in his statement said the SC’s review jurisdiction over martial law “is one of the many safeguards” in the 1987 Constitution to prevent the “excesses” of Mr. Marcos’s martial law.

But “(t)his safeguard was denigrated by the majority decision which effectively deferred to the discretion of the President,” Mr. Lagman said in part.

He lamented further, “The majority decision even went to the extent of pronouncing that the territorial coverage of martial law is subject to the President’s discretion, thus paving the way for an expanded territorial ambit of a martial law declaration.

“The foregoing obiter dictum was completely unnecessary. It may only further embolden the President to place the entire country under martial law,” warned Mr. Lagman. — with Raynan F. Javil

Human Rights Watch flags discrimination in Muslim-only ID proposal

A PLAN by local officials to implement a “Muslim-only” identification card (ID) system as a counterterrorism initiative is “discriminatory,” warned a New York-based human-rights advocacy group on Wednesday, July 5.

The proposal, which Human Rights Watch (HRW) said will cover around 26,000 Muslims in Central Luzon, came amid ongoing clashes between government troops and IS-linked Maute rebels in Marawi City.

“Two weeks ago, authorities in the town of Paniqui, Tarlac province, imposed a Muslim-only ID card as a ‘best practice’ that authorities were urged to replicate throughout Central Luzon’s seven provinces,” HRW said.

“The International Covenant on Civil and Political Rights and other human rights treaties to which the Philippines is a party prohibits discrimination based on religion. The IDs could also violate the rights to equal protection of the law, freedom of movement, and other basic rights,” it added.

The group noted further that “some Muslim leaders did not object outright to the proposal.”

“ID requirements for Muslims should be rejected outright,” HRW said, adding that “there have been reports of discrimination against Muslims” since martial law was declared in Mindanao. — Jil Danielle M. Caro

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