LONDON — A brain training computer game developed by British neuroscientists has been shown to improve the memory of patients in the very earliest stages of dementia and could help such patients avert some symptoms of cognitive decline.
Researchers who developed the “game show”-like app and tested its effects on cognition and motivation in a small trial found that patients who played the game over a period of a month had around a 40% improvement in their memory scores.
“We hope to extend these findings in future studies of healthy aging and mild Alzheimer’s disease,” said George Savulich, who led the study at Cambridge University.
Dementia is a huge global health problem. The World Health Organization says some 47.5 million people had dementia in 2015, and that number is rising rapidly as life expectancy increases and societies age.
The condition is incurable and there are few drugs that can alleviate the symptoms — which include declining memory, thinking, behavior, navigational and spatial skills and the gradual loss of ability to perform everyday tasks.
Publishing his results in the “International Journal of Neuropsychopharmacology,” Savulich said that as well as improving their memory scores in the game, patients who played it retained more complex visual information than those who didn’t.
Independent experts said the study’s findings were encouraging, but that the app needed be tested against other forms of brain training in trials involving more people.
“While this type of brain training will not ultimately be able to prevent or cure memory diseases like dementia, (it is) a promising way to improve early memory symptoms of the disease,” said Tara Spires-Jones of the University of Edinburgh. — Reuters
WE’RE HALFWAY through the year and the roll-out of gadgets from consumer electronics giants shows no sign of letting up. Sony Philippines have introduced in the Philippines its latest OLED 4K TV — a comeback for Sony in the OLED category after abandoning it 10 years ago. Samsung Electronics Philippines unveiled a mid-market smartphone that comes with a camera that performs well at capturing in low-light conditions. The company also announced a calibration software for its QLED TVs. And HP launched a pocket-friendly printer that instantly prints photos from smartphones. Read on for more details about each product.
Sony XBR-A1E BRAVIA
SONY BRAVIA 4K A1E SERIES
Sony has reentered the OLED TV category with the roll-out of its Sony Bravia A1E series (XBR-A1E BRAVIA). These 4K high dynamic range (HDR) models pack high-end technology that result in superior picture quality and an immersive viewing experience made possible by its innovative in-screen speakers.
This model’s screen features over 8 million self-illuminating pixels controlled by Sony’s 4K HDR Processor X1 Extreme, which delivers 40% more real-time image processing than Sony’s renowned 4K Processor X1. This extends the capability of OLED to deliver a richer 4K HDR picture. In a demo during Sony’s launch in Manila, the TV was displayed next to a high-end TV from another brand it was clear that Sony’s OLED TV rendered motion pictures in more crisp colors, with richer blacks and brighter whites.
The A1E series also uses what Sony claims to be the first of its kind audio technology that lets the TV emits sound from the screen itself. Sony calls this unconventional sound technology “Acoustic Surface” and it works by making the TV screen vibrate back and forth, thereby producing wide sound and image synchronization from all angles, even off to the sides, according to Sony. Since this feature removed the need to add conventional speakers usually located around the screen, Sony was able to design a unique form factor for the A1E series with no distraction from the picture.
Sony Bravia A1E series comes in two screen variants: 55-inch model (SRP P188,999) and 65-inch model (SRP 299,999).
SAMSUNG J7
Here’s yet another addition to the increasingly competitive mid-market smartphone segment as Samsung Electronics Philippines has launched the Galaxy J7 Pro touting a “great night camera” and comes with Android Nougat out-of-box.
The J7 Pro, which follows last year’s J7 (2016) model, features the same 5.5” touchscreen form factor but unlike its predecessor, Samsung opted to make the J7 Pro unibody for a more luxe feel.
The screen is FHD Super AMOLED with a 2.5D scratch-resistant glass on top while the rear camera is at 13MP with F/1.7 aperture and LED Flash, the bigger aperture is said to allow the rear camera to take more detailed night or low-light shots. The front-facing camera meanwhile, has an equal 13-MP shooter and LED flash but operates on a F/1.9 aperture.
But considering the current trends, Samsung also put a “wide selfie” feature to the front camera.
The P16,990 device (up from the P11,990 of the J7 2016), also comes with a 1.6-GHz Samsung Exynos 7870 octa-core CPU, a 3-GB RAM, a built-in 32-GB storage expandable to 256GB and a 3,600-mAH battery. It also comes with a fingerprint scanner.
The Samsung Galaxy J7 Pro will retail at P16,990 and will be available nationwide starting July 15.
HP Sprocket
HP SPROCKET
HP, Inc. has unveiled its newest, smallest, and hippest lifestyle printer yet: the Sprocket.
The Sprocket is a portable and pocket-sized printer that users can bring wherever, whenever. At only 0.17 kg and 4.53 x 2.95 inches, the Sprocket is as compact as a regular smartphone, and is one of HP’s most lightweight devices.
The Sprocket’s paper tray can carry 10 pieces of photo paper at one go and is rechargeable through a micro-USB that requires 90 minutes to fill up its battery. Charge and status light indicators are also visible at the left side portion of the device, alongside the reset and power button.
Aside from printing photos, this device also lets the users tweak photos through the HP Sprocket app. It is compatible with both Android (v4.4 and later) and iOS (iOS v8.0 and later) smartphones, and is downloadable through the Google and App stores. It also supports a variety of formats including BMP, GIF, and JPEG, as well as TIFF for iOS devices which means any photo can be printed out with ease, whether grabbed online or taken straight from a phone camera.
In just 40 seconds, users can print quality colorful photos with the use of the HP ZINK technology 2 x 3” photo papers that are smudge-proof and water and tear-resistant. The ZINK Technology feature uses zero ink and has crystals stored on each paper which can produce colors once heated. The photo papers also come with a peel-and-stick back, perfect for crafting personalized items, gifts, or souvenirs.
The Sprocket, which comes in black and white, retails for P7,290 via online shopping site, Lazada, and may be purchased directly at www.lazada.com.ph/hp-sprocket-official-store.
CALMAN WITH AUTOCAL
Samsung Electronics Philippines announced the availability of Portrait Displays’ new autocalibration software, CalMAN with AutoCal, on its 2017 QLED TVs. This software is said to be used by professional video calibrators within the display industry, and most end users in the broadcast, production and post-production industries.
Calibration is the process of gradually adjusting the color of a TV display. This process is especially important to designers, photographers and video professionals, who aim to match colors perfectly between input devices, such as monitors, and output devices, such as printers. Calibration provides users the ability to optimize their desired viewing experience based on their viewing environments.
Samsung QLED TV users can also measure the color volume of their TV using the CalMAN with AutoCal software. Color volume is the latest standard of picture quality that indicates how displays express color accurately, regardless of its brightness level. Samsung QLED TVs are the world’s first and only lineup that can express 100% color volume. — with a report fromZsarlene B. Chua
SEOUL — South Korea and the United States fired off missiles Wednesday simulating a precision strike against North Korea’s leadership, in response to a landmark intercontinental ballistic missile (ICBM) test described by Kim Jong-Un as a gift to “American bastards.”
Tuesday’s launch — acknowledged as an ICBM by Washington — 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 vowed that “won’t happen,” but independent experts said it could reach Alaska or even further towards the continental US. It will require a reassessment of the threat posed by the nuclear-armed North, which has carried out five atomic tests and said the multi-stage rocket’s warhead could survive atmospheric reentry to strike a target.
Amid international condemnation of the test, South Korean and US military forces launched short-range ballistic missiles of their own less than 24 hours afterwards from the peninsula into the Sea of Japan.
Both weapons homed in on their target, the South’s Joint Chiefs of Staff said, “displaying the capability of a precision strike against the enemy headquarters in times of emergency.”
The South’s new President Moon Jae-In, who backs engagement with Pyongyang to bring it to the negotiating table, said the North’s “serious provocation required us to react with more than just a statement.”
US general Vincent Brooks, the Combined Forces commander in South Korea, said: “Self restraint, which is a choice, is all that separates armistice and war.”
“As this alliance missile live fire shows, we are able to change our choice when so ordered by our alliance national leaders.”
The two countries are in a security alliance, with 28,500 US troops stationed in the South to protect it.
Their language is likely to infuriate Pyongyang, which says it needs nuclear weapons to defend itself against the threat of invasion and has been subjected to multiple sets of UN sanctions over its atomic and missile programs.
The launches came hours after a joint appeal by the presidents of China and Russia for all sides to exercise restraint and ease tensions.
Disagreement on how best to respond will complicate discussions at the UN, where the Security Council was due to meet in emergency session later Wednesday after Secretary-General Antonio Guterres condemned the North’s launch as a “dangerous escalation.”
After personally overseeing the test, the North’s leader Kim Jong-Un “said American bastards would be not very happy with this gift sent on the July 4 anniversary,” the official Korean Central News Agency (KCNA) reported.
Breaking into peals of laughter, KCNA said, he “added that we should send them gifts once in a while to help break their boredom.”
Mr. Kim had inspected the Hwasong-14 missile and “expressed satisfaction, saying it looked as handsome as a good-looking boy and was well made.”
The Rodong Sinmun newspaper, mouthpiece of the North’s ruling party, devoted five of its six pages to the news, including 55 colored pictures.
Questions remain over the precise capabilities of the weapon, but footage on the North’s state television Wednesday showed the first stage separating from the device and falling away.
KCNA said it had a carbon composite nose cone that could carry a “large, heavy nuclear warhead” and survive the harsh conditions of reentry into the Earth’s atmosphere, including “heat reaching thousands of degrees centigrade,” to “accurately hit the target.”
The missile only traveled little more than 900 kilometers 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.
US Secretary of State Rex Tillerson strongly condemned the launch, saying: “Testing an ICBM represents a new escalation of the threat to the United States, our allies and partners, the region, and the world.”
“As we, along with others, have made clear, we will never accept a nuclear-armed North Korea.” — AFP
MOSCOW — Moscow hopes the first face-to-face meeting between Russian President Vladimir Putin and his US counterpart Donald J. Trump later this week will establish an effective working dialogue between the two men, the Kremlin said on Wednesday.
The meeting, due to be held on the sidelines of the G20 summit in Hamburg on Friday, will be closely watched at a time when ties between the two countries remain strained by US allegations of Russian election hacking, Syria, Ukraine and a US row over Trump associates’ links to Moscow.
“This is the first meeting, the first time the two presidents will get acquainted — this is the main thing about it,” Kremlin spokesman Dmitry Peskov told a conference call with reporters.
“The expectation is that a working dialogue will be established, which is vitally important for the entire world when it comes to increasing the efficiency of resolving a critical mass of conflicts.”
The meeting would explore whether there was a chance and a readiness for the two countries to fight international terrorism together in Syria, Mr. Peskov said, saying Putin would explain Moscow’s stance on the conflicts in both Syria and Ukraine.
But Mr. Peskov said the meeting’s brief format meant the Russian leader might not have enough time to give a full analysis of what Moscow regarded as the causes of the Ukraine crisis.
Three years after Russia annexed Crimea from Ukraine and a pro-Russian separatist uprising broke out in eastern Ukraine, there is little sign of a peaceful solution in the east despite a ceasefire agreement signed in February 2015 in Minsk, Belarus.
Those accords were signed by France, Germany, Russia and Ukraine. Kiev accuses Moscow of actively supporting the pro-Russian separatists. Russia denies the charge. — Reuters
JAKARTA — For Fuad Bawazier, the financial crisis that moved like a wrecking ball through the Indonesian economy two decades ago remains a source of deep regret.
As finance minister in the dying days of Suharto’s dictatorship, Mr. Bawazier said he tried to warn the president against accepting a bailout of more than $40 billion put together by the International Monetary Fund (IMF) because of the strict austerity conditions linked to it. Suharto pushed ahead and Mr. Bawazier ended up having to implement the IMF’s plans, including budget cuts, high interest rates and bank closures that hurt an economy already in the throes of a currency collapse.
“The IMF gave the wrong advice, the completely wrong advice,’’ Mr. Bawazier, 67, said in an interview, recalling the turmoil of his short, three-month stint as finance minister.
By 1998, Indonesia was in full-blown crisis: the economy contracted 13%, millions of people were pushed into poverty and hundreds were killed in riots that eventually led to Suharto stepping down after more than 30 years in power.
His rule had been marked by rapid economic growth, but also large-scale corruption — which had enriched his family and inner circle — and repressive, militarized control. It would take years of political upheaval, punctuated by sectarian and ethnic violence and more graft scandals, for Indonesia to eventually recover.
Today, the Southeast Asian nation stands in stark contrast to what it was 20 years ago: It’s now a vibrant democracy with a more resilient economy, near-record foreign-currency reserves and investors lining up to tap a growing and youthful population. It has Southeast Asia’s largest economy that’s posted annual average growth of more than 5% in the past five years.
REFORMIST LEADERS
The crisis had also forged a new crop of leaders and reformers, led by President Joko Widodo and his Finance Minister Sri Mulyani Indrawati, who are working hard to keep the nation on track.
Ms. Indrawati, 54, returned to Indonesia last year after a stint as a managing director at the World Bank, promising to tackle corruption and clean up the tax system. Describing herself as an “economic activist,” her commitment to reform was shaped by her experience during those student protests on the streets of Jakarta in 1998.
“During her past year back in office she’s been cautious, and understandably so, but strictly professional,’’ said Kevin O’Rourke, a political analyst and author of Reformasi: The Struggle for Power in Post-Soeharto Indonesia, who was a stockbroker based in the capital during the crisis and the demise of Suharto’s regime.
Indonesia isn’t immune to financial shocks, but is much better prepared for them, according to Ms. Indrawati. The crisis that began in 1997 destroyed the foundation of the financial system, and today “there is better and more consistent governance of the financial sector and better risk management,’’ she said in June. The financial regulator, known as OJK, and the “central bank are more independent and have greater credibility in terms of enforcing prudential rules.”
DOMESTIC RISKS
Mr. O’Rourke said there had been obvious and dramatic changes over the past 20 years, including the rise of an Indonesian middle class, a more decentralized government and the military’s influence in politics diluted.
Yet Indonesia remains a very inward-looking nation that doesn’t live up to its potential as the world’s fourth-most populous nation and 10th largest economy. Mr. O’Rourke said that’s because of a three-way struggle that exists between a patronage system that entrenches the influence of political elites, religious and ethnic tension in politics and reform-minded officials, who want to get the economy onto its next stage of development.
Foreign observers were reminded of that tension recently, when governor of Jakarta, Basuki Tjahaja Purnama — Mr. Widodo’s political ally, who is a Christian of Chinese descent — was jailed for blasphemy in a test of religious tolerance in the world’s most populous Muslim nation.
The reformers are “the ones now on the defensive and this is the same struggle that has been playing out for 20 years now,” said Mr. O’Rourke. “That three-way tension is what has been occupying the attention of politicians and rendering Indonesia very inward-looking.’’
For investors, Indonesia has come a long way from the turmoil of 1998. Evidence of that came in a recent credit-rating upgrade and the currency’s rebound in the immediate aftermath of Donald J. Trump’s victory in the US election in November — the so-called ‘Trump tantrum’ when emerging markets sold off. The rupiah has gained 0.9% against the dollar this year and was trading at 13,351 as of 10:40 a.m. in Jakarta on Wednesday.
Reserve buffers aside, Indonesia has policy credibility and is on a sounder economic footing, said Weiwen Ng, an economist at Australia & New Zealand Banking Group in Singapore.
“What is under-appreciated is the fact that macro fundamentals are clearly much better now compared to 20 years ago and that reinforces the view that Indonesia, along with the rest of Southeast Asia, is clearly much more resilient now,” he said. — Bloomberg
INFLATION slowed to a five-month low in June — missing estimates — on softer food, utilities and transport price increases, giving the central bank room to continue keeping policy steady for now.
That was the question asked by Unilab Foundation, which in partnership with Vico’s Autism, has been supporting artists with autism. While the artists have been successful in selling some of their art works, there must be a more reliable way for them to earn income. Sure, they can sell their paintings, but one could only earn from a painting sale once. There must be a better way.
The answer to the question may lie in design, according to Director Gerry Torres of the De La Salle‑College of Saint Benilde (DLS‑CSB) Center for Campus Art.
“I thought that if we could develop designs from their art then they don’t necessarily have to sell their art,” Mr. Torres told SparkUp at the opening of the Design, Art, Autism exhibit at the School of Design and Arts Campus of DLS‑CSB, which he also curated.
“Designs would be a very potent way for them to have income, because designs can be turned into commodity, into merchandise. That can be constantly developed, then the merchandise can provide them with a steady income,” Mr. Torres said.
The works of eight artists with autism—Jorel Alegre, Vico Cham, Julyan Harrison, Chico Joaquin, Samantha Kaspar, Karl Oliveros, Muneer Pena and Daniel Sanchez—are shown with designs created by students of DLS‑CSB’s architecture, industrial design and fashion design programs until July 29. The exhibit is from Monday to Saturday, from 9 a.m. to 8 p.m.
As an example of how the project would work, Mr. Torres pointed at a colorful knapsack made by Design student Kim Davis, next to the painting made by artist Chico Joaquin.
“If someone’s interested to develop this knapsack and mass produce this, the proceeds will be divided between Kim Davis, who’s an Industrial Design student, and Chico Joaquin,” the curator explained. “The proceeds will be split between them.”
What makes the works of these artists unique? For starters, they aren’t bogged down by the so‑called rules of art. “They have a different way of looking at the world and it is manifested in their art—the way they convert it into colors, shape and lines is different,” said Mr. Torres.
“The way they do art is different. Very unique. Very brave. No rules. 100% focus.”
For the project, the design students of DLS‑CSB were given the digital files of the artworks they would base their designs on. “Through the digital file, the students were able to manipulate and extract their designs,” Mr. Torres said. “The artwork could be transformed into endless possibilities because it’s digital.”
And what came out of this project were designs as unique as the artists themselves.
The first thing you’ll see when you go to Jorel Alegre’s exhibit is a large painting of a tiger emerging from the shore. A Grade 11 student at the De La Salle University Integrated School, Mr. Alegre plays with light and shadow in his works, sparking up his art with highlights and shading. From his works, design students made eye‑catching cellphone cases that will make your mobile devices absolutely fierce.
Vico Cham, 25, surprised his architect father when he was ten years old with a painting that he did on one of his blueprints. His painting Clown Fish won the Austism Trust Foundation Global Visual Arts Competition at the United Arab Emirates (UAE) in 2014. He enjoys painting sea life, flowers, girls, and Disney characters. His work inspired jewelry designs, centerpieces and stickers that will add a feminine touch to your manly motorcycle.
“Enjoy my art, carry a piece of my heart ♥,” is the message left by Julyan Harrison on the wall of his exhibit. The 25‑year‑old is a young man with many hobbies, including farming, cooking, baking, biking and surfing. He is currently making art at Zambawood in Zambales. His colorful and wonderfully textured paintings of sea life inspired relaxing furniture and decor that’s perfect for a summer beach house.
Inspired by the works of Vincent Van Gogh, Claude Monet, Andy Warhol, Joan Miro and Paul Klee, 16‑year‑old Chico Joaquin listens to classical music while he paints. He does colorful and abstract depictions of people and animals, and creates short comic books and stop motion videos as well. A painting that takes off from spider Halloween decorations inspired design students to make a playful spider wallpaper, a webbed purple coat, and even an eight‑legged chair.
The childlike and expressive drawings of Samantha Kaspar evokes memories of a much simpler time in our lives. The creative young lady enjoys not only painting, but also playing the violin, singing and ice skating. Her works inspired cloth dolls based on her characters, wallpapers and decor that children would be happy to have in their room.
Karl Oliveros, 42, is skilled at something that most people have trouble with—beating deadlines. The time‑conscious artist’s talent lies in duplicating the art of others, and unlike his contemporaries in the exhibit, paints very realistic looking pictures of flowers, butterflies and fish. A wallpaper of butterflies and steel floral accents inspired from his works will add freshness to any room.
As a child, Muneer Pena, now 21, had this quirk of opening and closing doors over and over again, especially when he’s in a new place. His fascination with architecture shows in his paintings of houses and churches, most with open doors and windows that lead to lush gardens. His religious mother considers him a gift from God. His work, in turn, inspired tiles seemingly hand painted with leaves and interior design arrangements that seamlessly bring the outdoors in.
The parents of 17‑year‑old Daniel Sanchez enrolled him to art classes when he was younger to give him an outlet to express how he feels. “Because he had a speech problem, I couldn’t understand what he was trying to tell me, so I asked him to draw it,” said his mother. After three years of training, he just kept on drawing and drawing, just like the herd horses in his paintings keep running and running. His works are sometimes abstract, sometimes realistic, and filled with action. Naturally, a pair of shoes was inspired from his painting, as well as jewelry, a chair of roses, and a matching wallpaper.
“This exhibit is just the start. We are going to work with our Intellectual Property Office so if there’s a need for any arrangements between the artists and the designers in the future, this office, which is in Benilde, will be the one in charge to make sure that everybody is fairly treated,” said Mr. Torres.
So we look forward for products to be made from these colorful designs, knowing that the money we spend on them will go to the artists who deserve it.
A CHANGE of leadership at the Bank of Japan (BoJ) would offer a chance to bolster public confidence in its ability to defeat deflation, according to an economic adviser to Prime Minister Shinzo Abe.
“What’s important, especially this time, is whether we can undertake regime change,” Etsuro Honda said in a telephone interview on Friday. “It should be someone who is refreshing enough and can renew people’s impressions with personal charm and sincerity.”
Honda’s comments contrast with those he made in January, when he said reappointing BoJ Governor Haruhiko Kuroda, whose term ends in April next year, was an option, citing the importance of continuity at the central bank.
Honda declined to comment on potential candidates to replace Kuroda. He said he expects the selection process for BoJ leadership positions to start sometime this fall. The central bank’s two deputy governors’ terms end in March.
Honda, who is serving as ambassador to Switzerland, has been mentioned by private economists as a candidate for BoJ chief. He declined to comment on the possibility.
GROWING SPECULATION
With most economists forecasting no change to monetary policy this year, the question of who will serve as BoJ governor after Kuroda’s term ends is gaining more attention.
In a recent interview with Bloomberg, Nobuyuki Nahakara, a former BoJ board member and a mentor to Abe, said Kuroda should step down because new ideas were needed. Masahiro Kawai, an ally of the governor, said in a separate interview that Kuroda should serve for another term to finish what he started.
Kuroda was the candidate most frequently cited by economists in a Bloomberg survey last month. He has fended off questions about who will be governor after April by noting that it is a question for the government.
One thing that would disqualify potential candidates, Honda suggested, would be supporting another increase in the nation’s sales tax before the end of deflation was achieved. A similar tax hike in 2014 was widely blamed for derailing the economy. Honda said it also dashed expectations for Abenomics.
“If one doesn’t have a deep understanding of Abe’s strategy to overcome deflation, that person is absolutely not qualified,” he said.
Other qualities needed in a BoJ governor include consistent ideas on macroeconomic policies, a strong determination to fight deflation and the ability to communicate smoothly with the prime minister, overseas central bank chiefs and financial markets, he said.
A series of scandals and a resounding loss for his party in voting for the Tokyo assembly on Sunday have weakened Abe politically, but analysts expect him to remain prime minister at least until a party leadership contest in the autumn of next year.
Honda’s relationship with Abe goes back more than three decades, and the two communicate frequently. Honda was consulted on Abe’s choice of BoJ governor in 2013 as well as the board members appointed since then. Honda also successfully persuaded Abe to postpone a planned sale tax hike scheduled for 2015.
CONQUERING DEFLATION
There is no need for the BoJ to add stimulus now because inflationary pressures are rising due to a tight labor market and improving output gap, Honda said. The BoJ should keep its target for 10-year bond yields around 0% “as long as possible” until 2% inflation is stable, he said.
Honda said he has had to acknowledge that the BoJ faces a limit to its easing program, because it must consider the impact on financial stability, such as through profits at regional banks, a view he didn’t hold before the start of Abenomics in 2013.
What the economy needs now is supportive fiscal policy, which at the very least shouldn’t be tightened until deflation is defeated, Honda said. The government should make the most of the ultra-low interest rates created by monetary policy.
“It’s a fundamental principle that we keep fiscal policy expansionary to make it and monetary policy the two wheels of the economy,” Honda said. — Bloomberg
THE PESO moved sideways versus the dollar yesterday amid quiet trading, with US markets closed for a holiday and as market players look towards key data releases scheduled later this week.
The local currency closed at P50.52 against the greenback, gaining 2.5 centavos from its P50.545 finish last Monday which was its weakest showing in over a decade.
The peso opened weaker at P50.55 during Tuesday’s trading and hit a low of P50.58-to-a-dollar within the session. It touched P50.48 as its best showing.
Dollars that exchanged hands amounted to $540.3 million, rising from $395 million the previous day to return to the average daily volume traded at the foreign exchange market.
Traders interviewed yesterday said the peso was flat versus the greenback due to a lack of leads, as financial markets in the United States were closed in observance of Independence Day, with all eyes looking towards the release of “critical” economic data.
“The exchange rate moved sideways today due to caution ahead of the FOMC (Federal Open Market Committee) minutes and the US non-farm payrolls report on Friday. The peso’s slight appreciation might be a result of profit taking, given that US manufacturing data last night came out stronger than expected,” one trader said on Tuesday.
Another trader noted that peso-dollar trade is simply “consolidating” and moving within range, but saw an initial depreciation due to North Korea’s missile launch yesterday morning.
“North Korea’s missile launch spurred some weakness in the peso, but as soon as the initial news died down, the market traded lower,” the second trader said.
Reuters reported that Pyongyang made fired an intercontinental ballistic missile on Tuesday, triggering geopolitical tensions with neighboring countries and the US anew as it landed in Japanese waters.
Both analysts expect the peso to trade range-bound today as the market anticipates the release of the minutes of the US Federal Reserve’s June 13-14 meeting on Thursday and the latest jobs data on Friday night, as they look for hints on the timing of the central bank’s next policy moves.
The second trader said the Fed minutes “could change market sentiment,” amid mixed expectations as to whether a third rate hike will be introduced this 2017. Fed officials stood bullish on the US economy, although growth figures released last week came out softer than expected.
For today, the first trader sees the peso trading within P50.45 to P50.65 versus the dollar, while the other trader forecasts a P50.40-P50.60 range.
Jose Mario I. Cuyegkeng, senior economist at ING Bank N.V. Manila, said strong demand for dollars during the imports season is likely behind the peso’s weakness.
“In the near term, it’s imports season — normally, it’s up to mid-October. When imports rise, that creates pressure or demand for the US dollar,” Mr. Cuyegkeng told reporters yesterday.
Imports grew by 11.1% from January-April to reach $28.91 billion from $26.02 billion in the same period last year, according to the Philippine Statistics Authority. — Melissa Luz T. Lopez
THE CENTRAL BANK has required banks to report the volume of repurchase deals they forge with other firms starting last month, as the regulator sharpens its watch on the local money market.
The central bank will require banks to report on their repurchase deals. — BW FILE PHOTO
The Bangko Sentral ng Pilipinas (BSP) through Memorandum M-2017-020 told banks and quasi-banks to start submitting monthly reports covering their repurchase agreements or repo effective June 30.
In prescribing the reporting template, the BSP said the submission of such data “aims to strengthen financial surveillance, particularly in monitoring market trends and vulnerabilities in repo markets, to enable supervisory authorities to formulate effective policy responses to ensure continued functioning and efficiency of the financial system,” the issuance read, as signed by now-BSP Governor Nestor A. Espenilla, Jr. on June 28.
Under a repo agreement, one party sells a security — such as Treasury bills and bonds — to another which it will buy back at a specified price and a future date, in the process providing the seller with short-term liquidity which it can use to hand out loans and service additional client withdrawals.
The BSP ordered a trial period for the data submissions covering transactions in November 2016, as provided under Circular 923 issued in September last year.
Banks and quasi-banks must report the amount of daily repo transactions to the central bank, as well as the outstanding balance by the end of each month. The report must also reflect transaction details, such as the outstanding balance, the repo rate, and the remaining maturity of each agreement.
Such submissions should be “comprehensive” and “transactional-level data,” which would allow the BSP to monitor these fund movements closely.
Details about counterparties, particularly the repo buyer or cash lender must also be provided, and will be used to map the interconnectedness of such credit agreements. The type, quality, and fair value of a repurchase security must also be disclosed, the BSP said.
Currently, the BSP buys and sells government-issued debt papers held by banks with a 3.5% spread — the central bank’s benchmark repurchase rate — in order to expand or reduce the amount of money circulating in the financial system.
The increasing repo transactions are expected to help deepen the country’s capital markets, as it would unlock more funds which can support additional economic activity.
During his first speech as central bank chief on Monday, Mr. Espenilla vowed to work closely with other government agencies in order to “accelerate capital market reforms,” building on the gains made by his predecessor.
INDIA’S $750-billion sovereign-debt market is caught in a tug of war between foreign investors and state-run banks, the biggest holders of the securities.
As lenders sold 952 billion rupees ($14.7 billion) of sovereign bonds last quarter, overseas funds added more than 422 billion rupees to their holdings of the debt. The dichotomy is stemming from the potential for future gains that the two investor classes see in what has been emerging Asia’s best-performing market in the last three months.
For global investors like Franklin Templeton’s star bond-fund manager Michael Hasenstab, structural reforms by Prime Minister Narendra Modi, relatively high yields and a stable exchange rate make India a “sweet spot” among emerging markets. At home, a central bank nearing the end of its monetary easing cycle and risks emanating from farm-loan waivers are stoking caution after a three-year bond run.
“There are hardly any trading gains left in the market, much of the party seems to be over,” said Vijay Sharma, New Delhi-based executive vice-president for fixed income at PNB Gilts Ltd., a unit of India’s third-largest state lender by value.
“We expect the Reserve Bank of India (RBI) to deliver a 25-basis point rate cut in August and signal that more reductions won’t be coming.”
Local investors are also worried about a potential increase in debt supply, amid risks that Indian states lining up to rescue indebted farmers will fund a part of such bailouts by borrowing more from the bond market. With their higher yields, securities issued by regional governments could jeopardize the federal administration’s borrowing program.
While an RBI easing also risks narrowing the spread Indian notes offer over Treasuries, global money managers say the Asian nation’s real rates will still remain high in relative terms, and shouldn’t cause much harm to its carry-trade potential. Despite falling 231 basis points in the last three years, the nation’s 10-year bond yield is still the highest among major regional markets after Indonesia.
Overseas investors are also lured by India’s political stability and its central bank’s continued efforts to rein in consumer-price inflation, which eased to a record low of 2.18% in May. Borrowing in dollars to purchase rupee assets has earned 7.5% so far this year, the highest carry returns in Asia, data compiled by Bloomberg show.
India has drawn interest “due to its attractive carry, against the backdrop of a firm political mandate, a gradually improving macro story, and a stable currency,” said Wontae Kim, a Singapore-based research analyst at Western Asset Management Co., which oversaw $433 billion at the end of March. “Other markets may have higher absolute yields, but there aren’t many offering the kind of yields seen in India that also have the steady environment necessary to engender greater investor confidence.”
Foreign holdings of Indian debt surged by 804 billion rupees in the three months ended June, the highest for any quarter in National Securities Depository Ltd.’s data going back to 2011. Rupee sovereign bonds handed investors a return of 3.4% in the last three months, the highest in emerging Asia, according to indexes compiled by Bloomberg. India’s benchmark 10-year yield fell 17 basis points last quarter.
“Unprecedented” structural reforms by Modi will have long-lasting, positive implications for Indian markets, Franklin Templeton’s Hasenstab said in a video interview on the firm’s YouTube channel last week. Conditions are “very good for the bond market,” he said, adding yields are likely to be stable or declining. — Bloomberg
IN a landmark event that could possibly jump-start the industry for electric-powered vehicles into the mainstream in this part of the world, a multi-sector gathering discussed the realities and prospects of producing, running, and maintaining full-electric and hybrid vehicles in Southeast Asia.
On June 29-30, the 1st Asean Electric and Hybrid Vehicles Summit was held at the World Trade Center in Pasay City. Co-presented by the Board of Investments, the Electric Vehicle Association of the Philippines, the Chamber of Automotive Manufacturers of the Philippines, Inc., the Department of Trade and Industry, and Manila Electric Company, the two-day summit gathered over 600 local and foreign delegates, and attracted hundreds of visitors.
The summit serves as the jump-off point for alternative fuel vehicle advocates and allied industries to formulate definite action plans and platforms in their bid to create a positive long-term impact for society and the environment.
Among the global auto manufacturers that exhibited their electric and hybrid vehicles at the event were Toyota (Prius plug-in hybrid), Lexus (300h), Mitsubishi (Outlander PHEV and i-Miev), and Nissan (Leaf and Note e-Power).
On June 30, Nissan Philippines, Inc. held a round table regarding Nissan’s push for the EV and hybrid market in the region.
Yutaka Sanada, regional SVP of Nissan Asia and Oceania, presented an overview of Nissan Motor Corp.’s research and advances in EV technology.
“In order to highlight Nissan’s EVs, the customer aspect is very important. And that is our key message: Our customers are central to the issues of global warming, urbanization, air pollution, renewable energy, and the decision to choose between vehicles powered by ICEs [internal combustion engines] and EVs,” Mr. Sanada stressed.
He revealed key data necessitating the sea change in favor of mainstream EV and hybrid production and sales:
• The global transport sector’s share of CO2 emissions (the driver of climate change) has gone up to 23%, or up by 71%, since 1990;
• CO2 emissions of ICEs have not only come from their operation, but also from their production and maintenance; CO2 emissions from EVs only come from where their power has been sourced (i.e. electricity generated from coal-fired power plants);
• Among all existing types of engines (ICEs, hybrid EVs, and EVs), EVs come closest to meeting the new vehicle “well-to-wheel” CO2 emissions reduction target set forth by the COP21, or the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change — signed by 196 countries — by year 2020.
• Electricity generation via wind and solar power are becoming more affordable and competitive;
• Rapid urbanization in Southeast Asian countries are resulting in more traffic-congested cities, which in turn increase air pollution levels in these areas. This is forcing governments to implement stricter emissions laws for ICEs;
• Stricter emissions regulations will drive the costs of ICE drivetrains up, while production costs of BEVs (battery electric vehicles) will go down. Independent agencies forecast a “cost crossover,” wherein BEVs will become more affordable than ICEs, by the mid-2020s, and;
• Under the Nissan Intelligent Mobility philosophy, the automaker’s EV cars have resulted in “zero emissions and zero fatalities,” its units logging “over three billion kilometers without any critical incidents.”
At the summit’s exhibit area, Nissan displayed the world’s best-selling EV, the Leaf, short for “Leading Environmentally friendly Affordable Family car,” and the Note e-Power hatchback, which dislodged the Toyota Prius as Japan’s best-selling car in January.
Nissan, which boasts of being the leader in the global EV market with total sales of 263,000 units (and under its alliance with Renault, 350,000 EVs have been sold since the introduction of the Leaf in late 2010), has yet to reveal definite plans for the sale and distribution of its Leaf and Note e-Power in the Southeast Asian and Philippine markets.
Mitsubishi donates eco cars to DENR
MITSUBISHI Motors Corp. (MMC) at the ASEAN Electric and Hybrid Vehicles Summit turned over five Mitsubishi i-MiEV hatchbacks and five Outlander PHEV SUVs to the Department of Environment and Natural Resources (DENR). MMC said the donation is part of its efforts in promoting clean energy and environmental protection. The vehicles will be used by DENR personnel stationed at the agency’s central office in Quezon City, and regional offices in Cebu and Davao. Besides the vehicles, MMC will also install quick battery charging systems at some DENR offices, and has committed to establish in the Philippines within five years mangrove and bamboo plantations covering 100 hectares.
Three of world’s leading alternative-fuel vehicle makers — Nissan, Toyota and Mitsubishi — displayed models at the ASEAN electric and hybrid car summit.
Nissan officials Ramesh Narasimhan (left) and Yutaka Sanada discuss the brand’s strategy for electric vehicles, which at present count the Leaf (2nd photo) and Note e-Power (3rd photo). — ARIES B. ESPINOSA
Researchers who developed the “game show”-like app and tested its effects on cognition and motivation in a small trial found that patients who played the game over a period of a month had around a 40% improvement in their memory scores.
