Peso hits fresh 19-month low as data support early BSP cut

June 5, 2024 | 9:00 pm

THE PESO dropped to a fresh 19-month low against the greenback on Wednesday as slower-than-expected May inflation bolstered bets that the Philippine central bank would cut rates before the US Federal Reserve.

The local unit closed at P58.78 per dollar on Wednesday, weakening by seven centavos from its P58.71 finish on Tuesday, Bankers Association of the Philippines data showed.

This was the peso’s worst finish in over 19 months or since its P58.80-per-dollar close on Nov. 3, 2022.

The local unit is now down by P3.41 from its end-2023 finish of P55.37 versus the greenback.

The peso opened Wednesday’s session weaker at P58.80 against the dollar, which was also its worst showing for the day. Meanwhile, it climbed to as high as P58.65 versus the greenback during the session.

Dollars exchanged inched up to $1.319 billion on Wednesday from $1.317 billion on Tuesday.

The peso was dragged down by slower-than-expected May inflation and less dovish signals from the Bangko Sentral ng Pilipinas (BSP), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The peso weakened as the softer-than-expected Philippine inflation report bolstered views of an earlier BSP rate cut in August,” a trader likewise said in an e-mail.

Headline inflation quickened for a fourth straight month in May 3.9% year on year from 3.8% in April.

This was slower than the 6.1% print in the same month a year ago and the 4% median estimate in a BusinessWorld poll of 16 analysts conducted last week. It was also within the BSP’s 3.7-4.5% forecast for May and marked the sixth straight month that inflation settled within the central bank’s 2-4% annual target range.

For the first five months, the CPI averaged 3.5%, within the BSP’s target band for 2024. The central bank expects inflation to average 3.5% this year.

BSP Governor Eli M. Remolona, Jr. on Tuesday reiterated that the Monetary Board could start cutting rates before the Fed despite a weaker peso recently.

Mr. Remolona earlier said the BSP could start its easing cycle with a 25-basis-point (bp) rate cut as early as the Monetary Board’s Aug. 15 meeting and slash rates once or twice in the second semester.

The Monetary Board last month kept its key rate steady at a 17-year high of 6.5%. The central bank raised borrowing costs by 450 bps from May 2022 to October 2023 to bring down inflation.

For Thursday, the trader said the peso could depreciate further on a potentially strong May US Institute for Supply Management non-manufacturing purchasing managers’ index data scheduled for release overnight.

The trader expects the peso to move between P58.65 and P58.90 on Thursday, while Mr. Ricafort sees it ranging from P58.65 to P58.85 per dollar. — A.M.C. Sy

French shocker: Djokovic pulls out

June 5, 2024 | 8:54 pm

Sinner climbs to No. 1; Swiatek vs Gauff next

PARIS — Novak Djokovic’s French Open title defense ended with a whimper following the top seed’s withdrawal due to a right knee problem while Jannik Sinner celebrated his imminent takeover as world number one with a crushing win over Grigor Dimitrov on Tuesday.

There was no drama on the women’s side as holder Iga Swiatek continued her quest for a fourth Roland Garros trophy by hitting top gear during a 6-0, 6-2 victory over 2019 runner-up Marketa Vondrousova to also reach the semifinals.

American third seed Coco Gauff earlier fought back to beat fan-favorite Ons Jabeur 4-6, 6-2, 6-3 and will take on Ms. Swiatek in a tantalizing rematch of their 2022 final, which the Pole won.

Roland Garros was rocked towards the end of Sinner’s routine win as organizers announced that Mr. Djokovic had withdrawn from his 2023 final rematch with seventh seed Casper Ruud in the last-eight on Wednesday.

It meant that Mr. Sinner, who ended Mr. Djokovic’s quest for an 11th Australian Open title en route to his first Grand Slam trophy in January, will also take his top ranking next Monday and become the first Italian to do so.

Mr. Djokovic needed a superhuman effort and five sets to subdue Argentine Francisco Cerundolo on Monday after being dragged the distance for a second straight contest and the Serb aggravated the injury he had been carrying by slipping on court.

The French Open said MRI results revealed that Mr. Djokovic, who played on with pain-killers, had suffered a torn medial meniscus that prompted him to take the decision.

It was the latest in a series of unfortunate events for the 37-year-old, who won three out of the four majors last year but has looked off the pace this season, with defeats and an injury threatening his bid for Wimbledon and Paris Olympics glory.

Even as Mr. Djokovic arrived at Roland Garros to clean out his locker, Mr. Sinner was easing to a 6-2, 6-4, 7-6(3) win over Mr. Dimitrov and the 22-year-old said he had achieved a lifelong dream, even if it was not the way he expected to.

“What can I say? First of all it’s every player’s dream to be number one. On the other hand, seeing Novak retiring here is, for everyone, disappointing. I wish him a quick recovery,” Mr. Sinner said.

The Australian Open champion will renew his great rivalry with Carlos Alcaraz in the semifinal, after the two-time Grand Slam champion put on a clinical performance to beat former Roland Garros runner-up Stefanos Tsitsipas 6-3, 7-6(3), 6-4.

Alcaraz dropped only three of his first-serve points in the first set and held his nerve through the tiebreak to halt the Greek’s mid-match comeback, before delivering one of his superb dropshots on match point.

The Spaniard assured the crowd at Roland Garros that his meeting with Sinner would not disappoint, with the Italian playing at the top of his game.

“It’s going to be a really difficult challenge for me. I’m ready to take that challenge,” said Alcaraz. “It is the match that everybody wants to watch and I’m sure that he’s going to show his best tennis, myself as well.”

The pair are evenly split with their career head-to-head record at 4-4. Alcaraz won their most recent meeting, a semifinal match at Indian Wells this year.

“You have to run like it is a marathon, you know, side-to-side… Everything he does, he does it perfectly,” Alcaraz told reporters. “I think it is the hardest thing to face Jannik. At the same time I love that. I love these kinds of matches.” — Reuters

Celtics star itching to face old team

June 5, 2024 | 8:53 pm

BOSTON Celtics star Kristaps Porzingis, who has not played since April 29 because of a calf injury, plans to be available for Game 1 of the NBA Finals on Thursday against the Dallas Mavericks.

“That is the plan right now,” Mr. Porzingis said on Tuesday in his first public comments since May 4. “Again, it’s a couple more days, and I think that could make a difference. Every day gives me a bit more time to get even better.”

The 7-foot-2 power forward/center sustained a non-contact right calf strain in Game 4 of Boston’s first-round playoff series against the Miami Heat.

He averaged 20.1 points and 7.2 rebounds and shot a career-best 51.6 percent from the floor in the regular season, his first in Boston. The Celtics acquired him from the Washington Wizards as part of a three-team trade also involving the Memphis Grizzlies on June 23, 2023.

Mr. Porzingis, 28, also played during parts of three seasons with the Mavericks (2019-22), adding another layer to the matchup after he watched Boston go 9-1 without him. The Celtics dispatched Miami in five games, the Cleveland Cavaliers in five games and the Indiana Pacers in a four-game sweep in the Eastern Conference finals.

“I think it’s gonna be great,” Mr. Porzingis said. “I played there for 2 1/2 years and I’m happy for everybody in Dallas. A lot of like great relationships I have there and I think they deserve to have some success like they’ve had this season.

“It’s gonna be fun going up against my old team, going back to Dallas, playing some games there. Looking forward to it.”

But first, Mr. Porzingis has to be healthy enough to play. The native of Latvia was asked Tuesday if he’s at 100 percent after resuming participation in team practices.

“Good question,” he said. “I don’t know. We’ll see.”

Done a lot of work up until this point. Done everything needed to get back into playing shape. We’ll see.”

He said it’s hard to replicate game intensity in practice but “I have to be confident it will be alright.”

“I think the medical staff would not put me out there if they wouldn’t be confident that I’d be good,” Porzingis said. “I’ve done the things necessary to check the boxes, and that’s it.”

Celtics coach Joe Mazzulla is confident in Porzingis’ ability as a veteran player to handle returning to action after the layoff.

“He’s been playing basketball for like 30 years,” Mazzulla said. “He’s been playing intense situations his whole life, so I don’t think that will be much of an issue. I think everything was just dependent upon — obviously you can’t simulate the speed and the intensity of the game, which I think just comes with a little bit of reps.

“KP is a great player. I think just because you’ve been out for a month doesn’t mean you have to, like, relearn how to play basketball. He’s been doing a lot of great things for us this season on both ends of the floor with physicality, with intensity. And I expect him to pick up right where he left off, but obviously there will be a little bit of rust. Just not concerned because of the work that he’s put in and what he’s done in his career and what he’s done in this season for us.” — Reuters

Fajardo has 10^th BPC title in sight

June 5, 2024 | 8:52 pm

SAN Miguel Beer’s (SMB) June Mar Fajardo is on track to become the first player in PBA history to breach the twin-digit mark in number of Best Player of the Conference (BPC) awards won.

Mr. Fajardo, owner of a record nine BPCs, leads the list of nominees shortlisted for the top individual plum of Season 48 Philippine Cup after the semifinal cutoff.

The seven-time MVP amassed 43. 12 average statistical points (SPs) built around 17.35 points, 14.59 rebounds, 3.12 assists and 1.24 blocks per outing to pace the candidates.

Challenging Mr. Fajardo for the accolade are NLEX’ Robert Bolick and Terrafirma rookie sensation Stephen Holt, who are eyeing their first BPCs, fellow SMB stalwart CJ Perez, who is gunning for back-to-back, and Ginebra’s Christian Standhardinger, who is aiming for a third.

Mr. Bolick, the tournament’s premiere scorer with 28.33 and assist-issuer with 6.58, sits at a close No. 2 in the derby behind Fajardo with 43.03 SPs.

Mr. Holt occupies third with 40.85 SPs on the strength of his all-around 21.08 markers, 8.15 boards, 6.31 dimes and 2.46 steals that significantly helped the Dyip reach the quarterfinals and even drag twice-to-beat top seed SMB to a rubber match.

Mr. Perez, who scored a breakthrough BPC feat last February in the season-opening Commissioner’s Cup, runs fourth with 39.18 SPs highlighted by a team-best 20.76 markers plus 6.29 rebounds and 4.06 assists.

Mr. Standhardinger, the Season 44 and 47 Governors’ Cup BPC and the only player other than Fajardo to average double-double (21.26 points and 10.47 rebounds) in the conference, rounds out the candidates with his 39.16.

The winner will be determined by a combination of statistical points and votes from fellow players and media.

If successful, Fajardo will add to his legend as a 10-time BPC winner while creating more separation from the No. 2 in the all-time list of multiple winners – TNT’s Jayson Castro and current Converge assistant coach Danny Ildefonso, who have five apiece. — Olmin Leyba

Uphill battle for Gilas women vs Mongolia

June 5, 2024 | 8:51 pm

FANCIED home bets stand in the way as the Gilas Pilipinas women’s team makes its debut today in the FIBA 3×3 Women’s Series in Ulaanbaatar, Mongolia.

Vying in the women’s pro circuit tour for the first time in partnership with Uratex Dream, the Filipina ballers take on host and No. 1 seed Mongolia at 2 p.m. to fire off Pool A play before clashing with the No. 5 seed Mongolia U-23 squad at 3:50 p.m.

Gilas, seeded last in the eight-team field, then wraps up its preliminary schedule against the fourth-seeded Ukraine at 5:40 p.m.

The Philippines is 54^th in the world federation rankings compared to Mongolia, at No. 20 and Ukraine, at No. 23 — making it a tough climb to the top.

Austria, Austria U23, China U24 and Thailand are the other teams slugging it out in Pool B.

Kaye Pingol, Hazelle Yam, Allana Lim and Samantha Harada will lead the way for Gilas with hopes of raking in enough points for a qualification in the next World Cup and Olympic cycle as well as for the tour finals.

Gilas has to finish first in its group to clinch an outright semifinal ticket. A second or third place finish would propel it to the quarterfinals for a fighting chance at a semis spot.

The bottom-ranked squad in the pool play then gets the boot.

The FIBA 3×3 Women’s Series, a counterpart of the FIBA 3×3 World Tour for men’s teams, has 20 stops for the whole season before the finale in September in Hangzhou, China. — John Bryan Ulanday

Konov makes strong DLSU even stronger

June 5, 2024 | 8:51 pm

THE STRONG just got stronger as reigning UAAP champion De La Salle University (DLSU) secured the services of Gilas Pilipinas youth standout Alex Konov.

The Filipino-Bulgarian forward from New Jersey in the United States announced his decision to join the Green Archers, who are in the thick of the Filoil EcoOil 17^th ECJ Preseason Cup campaign before flying to Japan for training camp.

“I am extremely excited to announce my commitment to De La Salle University Manila in the Philippines,” posted Mr. Konov on his official social media account. “I want to thank all my coaches and trainers that have helped me along the way. I also want to thank my parents for everything they have sacrificed over the years. Big thanks to Coach Topex (Robinson) and his staff for the opportunity, can’t wait to get to work. Go Green Archers.”

The 6-foot-7 Mr. Konov just graduated from high school, making him eligible right away for De La Salle in the UAAP Season 87 this September.

He is best known for his Gilas performance in the FIBA U16 Asian Championship in 2022 in Doha, Qatar with averages of 10.0 points, 2.7 rebounds and 1.5 assists.

Mr. Konov, with a maximum five-year playing eligibility, will join an already stacked La Salle unit led by reigning UAAP MVP Kevin Quiambao and PBA D-League MVP Mike Phillips.

He will shore up the Green Archers’ future under the watch of Robinson after acquiring ace guards Jacob Cortez from San Beda, Kean Baclaan from National U, and former NCAA juniors MVP Luis Pablo from the University of the Philippines.

Cortez, Baclaan and Pablo will redshirt this season before being eligible in Season 88 as Robinson’s Green Archers look on course for UAAP dominance in the years to come after beating the equally stacked Fighting Maroons. to win Season 86. — John Bryan Ulanday

Redick tipped as new Lakers coach

June 5, 2024 | 8:50 pm

IF THE Lakers were to hire a coach tomorrow, it would be JJ Redick, according to ESPN and Stadium.

Mr. Redick and New Orleans Pelicans associate head coach James Borrego were previously reported to be the leading candidates to replace Darvin Ham as head coach of the Lakers, but Los Angeles hasn’t completed its interview process, according to The Athletic.

Even so, the current leader in the clubhouse is Mr. Redick. The Athletic’s sources have said that the Lakers are “zeroing in” on Mr. Redick, 39, and that he is considered “the front-runner.”

A former Duke 3-point marksman who spent 15 years in the NBA, Mr. Redick is employed by ESPN in a broadcasting role and launched a podcast with Lakers forward LeBron James, “Mind the Game.”

He also interviewed with the Hornets to become a first-time head coach and was in the running to replace Nick Nurse with the Toronto Raptors last summer.

Redick, who will be covering the NBA Finals for ESPN over the coming days, has a history playing under former Duke coach Mike Krzyzewski, who has been an “unofficial” resource for the Lakers during the hiring process.

The Lakers are not afraid to turn to former players as coaches and can point to the strong success of NBA Finals head coaches Joe Mazzulla of the Boston Celtics and Jason Kidd of the Mavericks — not to mention Steve Kerr of the Golden State Warriors — as recent examples that would align with the Redick move. — Reuters

Reese thrown out in Chicago loss

June 5, 2024 | 8:50 pm

BREANNA Stewart scored 33 points and grabbed 14 rebounds to help the visiting New York Liberty beat the Chicago Sky 88-75 on Tuesday.

Chicago rookie Angel Reese was ejected after receiving two technical fouls with 2:31 remaining in the game. Ms. Reese finished with 13 points and 10 rebounds but shot 3 of 12 from the floor in the loss.

The Liberty (8-2) won their fourth in a row and avenged their loss to the Sky (3-5) on May 23. New York went on a 15-2 run to start the fourth quarter after Chicago erased a 17-point, first-half deficit.

Sabrina Ionescu added 24 points and seven rebounds for Liberty, who held the Sky to a season-low 32.4 percent shooting from the floor.

New York controlled the game in the first quarter, shooting 57.9 percent in the frame to take a 31-15 lead after one. Ms. Stewart paved the way with 15 points on 5-of-7 shooting, including 2-of-2 from 3-point range.

Chicago responded in the second quarter. Chennedy Carter, who received a flagrant foul after knocking down Indiana Fever rookie Caitlin Clark on Saturday, scored 10 of her 15 first-half points in the quarter. The Sky outscored the Liberty 33-18 in the frame and entered the break trailing 49-48. — Reuters

Ohtani’s interpreter pleads guilty

June 5, 2024 | 8:49 pm

JAPANESE baseball great Shohei Ohtani’s former interpreter pleaded guilty on Tuesday to stealing nearly $17 million from the athlete’s bank account to pay off his own gambling debts, according to US prosecutors.

Ippei Mizuhara, the onetime translator and de facto manager of the Los Angeles Dodgers’ power-hitting pitcher, pleaded guilty in a deal that had been announced last month, a US Attorney spokesperson said. Sentencing will be on Oct. 25.

Mr. Mizuhara’s lawyer declined to comment.

“The fraud was deep and the fraud was extensive,” US Attorney Martin Estrada said at a press conference after Mizuhara’s plea.

A 33-page record of the deal, in which Mr. Mizuhara, 39, agreed to plead guilty to one count of felony bank fraud and one count of subscribing to a false tax return, was previously filed in US District Court in Los Angeles. — Reuters

‘Ambitious’ PEDP goals to be adjusted on weak global growth

June 5, 2024 | 8:45 pm

By Justine Irish D. Tabile, Reporter

THE TARGETS set in the Philippine Export Development Plan (PEDP) may have to be tempered to reflect slower global economic growth, according to the Department of Trade and Industry.

Bianca Pearl R. Sykimte, director of the Export Marketing Bureau and executive director of the Export Development Council, said that the PEDP export targets will be subject to “recalibration.”

“We will, but timing-wise, we are not yet able to explore the recalibration of targets. But we had discussions already, and we are only waiting for the timing,” Ms. Sykimte told reporters on the sidelines of the Auto Parts and Vehicles Expo on Wednesday.

“We might temper them because when we were drafting the PEDP, at the time we were recovering from the pandemic, there was an upward trend,” she said, adding that the need for them to be toned down became apparent with inflation, the geopolitical crisis, and slower global economic growth.

She said however that export targets set out in the Philippine Development Plan (PDP) remain achievable.

“We issued the PDP first, which is why its targets were more tempered. In fact, in terms of PDP targets, we are actually hitting them,” she said.

“The PEDP is really intended to be more ambitious,” she added. “But the scenario that we were expecting at the time we were drafting the PEDP was more favorable.”

Last year, total exports of $103.6 billion missed the $126.8 billion goal laid down in the PEDP but surpassed the $100.9 billion set under the PDP.

The PEDP expects merchandise and services exports for 2024 to hit $143.4 billion, a much more aggressive estimate than the $107-billion export target under the PDP.

The Philippine Statistics Authority reported that exports of goods in the first quarter amounted to $17.98 billion, up 4.8% from a year earlier.

Ms. Sykimte said that although the semiconductor industry, which accounts for the majority of exports, is expected to recover this year, the performance of agricultural exports will hinge on international prices.

“Luckily for semiconductors, we’re expecting an uptick this year. But of course, we also have a big agricultural resource base that is dependent on international prices,” she said.

“For copper, international prices are decreasing, and for coconut, we’re looking at what will be the trend for the year because these are the driving export figures for resource-based export products,” she added.

Auto industry facing global cost pressures, weak demand — DTI

June 5, 2024 | 8:45 pm

THE Department of Trade and Industry (DTI) said the auto industry is facing cost pressures and weak consumer demand in major global markets.

At the opening ceremony of the Auto Parts and Vehicles (APV) Expo on Wednesday, Bianca Pearl R. Sykimte, director of the Export Marketing Bureau (EMB), said these pressures are weighing on the growth of the industry.

Citing Euromonitor International’s Automotive Global Industry Report, she said growth of the automotive industry will be weak until 2027, even though it has recovered from the supply shocks experienced during the pandemic.

“Significant cost pressure is expected to remain due to rising labor costs and the higher investment and research and development costs associated with the production of electric vehicles,” Ms. Sykimte said.

“Supply chain optimization efforts are expected to continue because of geopolitical tensions. Car manufacturers are anticipated to create smaller networks of semi-independent suppliers to reduce risk,” she added.

She said that manufacturers are also expected to become more vertically integrated by collaborating more with mining, chemical, and technology companies.

“Rising operating costs and the need for large-scale investment are expected to continue to drive consolidation in the automotive industry … Companies are expected to form alliances and intensify acquisitions of smaller components,” she added.

The three-day APV Expo is the inaugural edition and was organized by EMB and the Philippine Exporters Confederation, Inc. (Philexport).

According to Ms. Sykimte, the event will give the industry a chance to connect with potential partners.

“Platforms like this provide the opportunity to learn from and benchmark with other industry players and experts as we continuously develop and position the Philippines as a regional hub for sustainability, connectivity, and innovation-driven manufacturing and services,” she said.

Philexport President Sergio R. Ortiz-Luis, Jr. said the expo will also be a venue “for domestic manufacturers and exporters of auto parts and accessories to learn from their counterparts abroad, while also showcasing their own capacities.”

The event is expected to attract over 4,000 potential buyers and sellers, as well as more than 120 regional and international exhibitors.

Meanwhile, Transportation Undersecretary for Road Transport and Infrastructure Jesus Ferdinand D. Ortega said that the auto parts and vehicle industry is key component of the government’s Public Utility Vehicle Modernization Program.

“Together with quality vehicles, what we need are quality parts. These are vehicles and parts not for private use but for livelihood. So I think these kinds of venues will help us look for the quality that is needed,” Mr. Ortega said.

He added that more manufacturers will be accredited to drive growth in local production.

“What’s good news here is that we will be amending our department order (calling for more) after-sales service to ensure that quality parts needed for these vehicles will be available for years to come,” he said. — Justine Irish D. Tabile

Climate Investment Funds backs PHL’s $500-million coal-to-RE transition plan

June 5, 2024 | 8:44 pm

air-pollution-climate-change — PEXELS-PIXABAY

THE BOARD of the Climate Investment Funds (CIF) has endorsed a $500-million financing package that will support the Philippine transition from coal to renewable energy (RE).

The CIF said the package consists of $475 million in loans and $25 million in grants.

“This endorsement represents a major achievement in the Philippines’ journey away from coal and towards a clean energy future,” CIF Chief Executive Officer Tariye Gbadegesin said in a statement on Wednesday.

Ms. Gbadegesin said that the financing “will help ensure private sector buy-in, increased renewable energy development, and a just transition, for the benefit of the Filipino people and our planet.”

CIF said overall funding for the transition is expected to exceed $2.3 billion, with contributions from the Asian Development Bank (ADB), the World Bank, and the public and private sectors.

CIF is one of the world’s largest multilateral funds helping low- and middle-income countries adapt to and mitigate climate change.

“Together with the International Finance Corp. and the World Bank, we are committed to supporting the Philippines in achieving a just and inclusive energy transition that is a win for communities, the environment, and the economy,” according to Scott Morris, ADB vice-president for East Asia, Southeast Asia, and the Pacific.

The $500-million CIF package is included in the Philippines’ Accelerating Coal Transition (ACT) investment plan.

The plan calls for the early retirement or repurposing of Mindanao coal-fired power plants.

The Philippines plans to accelerate the retirement of up to 900 megawatts (MW) of existing coal generation capacity by 2027.

As of March, coal-fired power plants supplied 44.1% of the country’s mix, with combined capacity of 12,556 MW.

Through the ACT investment plan, the Philippine government “will progress their Nationally Determined Contribution, having committed to a 75% reduction in (greenhouse gas) emissions by 2030,” CIF said.

The funding will also support efforts to add 1,500 MW of renewable energy capacity by 2030, CIF said.

The Philippines aims to raise the share of renewable energy in the power mix to 35% by 2030 and 50% by 2040.

“The Philippine government’s commitment to energy transition through the CIF ACT Investment plan is commendable,” said Ndiame Diop, World Bank country director for Brunei, Malaysia, Philippines and Thailand.

“The World Bank looks forward to supporting the government’s efforts to establish the enabling policy and regulatory environment and scale up investments for a just, sustainable energy transition,” he added. — Sheldeen Joy Talavera