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DoE preparing for rains

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE DEPARTMENT of Energy (DoE) is preparing contingency measures for La Niña, including boosting power reserves ahead of heavy rains and floods, its chief said on Thursday.

Energy Secretary Raphael P.M. Lotilla told reporters they expect the reserve market to return to full operations in the next two months to allow diesel and bunker fuel power plants to run.

The reserve market allows the system operator to procure power reserves from the spot market to meet the energy requirements of the system.

This would help the country in case of power interruptions caused by the rains, Mr. Lotilla said.

The country was placed under red and yellow alerts in April after power failures that caused blackouts in Luzon and the Visayas. — Sheldeen Joy Talavera

China coast guard personnel a “band of barbarians”, says Philippine navy official

SCREENGRAB FROM THE PHILIPPINE COAST GUARD VIDEO

 – China’s coast guard personnel acted like a “band of barbarians” during a Philippine resupply mission to a contested shoal in the South China Sea this week that led to injuries and damage to vessels, a senior navy official said on Thursday.

A Philippine sailor suffered serious injury after what its military described as “intentional-high speed ramming” by the Chinese Coast Guard, aiming to disrupt a resupply mission for troops stationed on the Second Thomas Shoal.

China’s Coast Guard personnel, which Philippine military officials said were carrying knives and spears, looted firearms and “deliberately punctured” Philippine boats involved in the mission.

“We were unprepared for that kind of response,” Philippine navy spokesperson Roy Trinidad said in a phone interview on Thursday. “We stuck with the rules of engagement. They were not allowed to use guns except for self defense.”

Mr. Trinidad said China’s “illegal, aggressive and deceptive” actions raises the risk of miscalculation at sea.

But China’s foreign ministry disputed the Philippines‘ statement, with a spokesperson saying on Thursday that the necessary measures taken were lawful, professional and beyond reproach.

“The Philippine ships not only carry building materials, they also smuggled weapons and equipment and deliberately rammed Chinese ships,” said ministry spokesperson Lin Jian.

“Non-personnel have also splashed water and thrown objects at Chinese law enforcement officers, which has obviously aggravated the tense situation at sea, seriously threatening the safety of Chinese personnel and vessels,” Mr. Lin told a regular press briefing.

Encounters between the Philippines and China, which claims most of the South China Sea, have grown more tense and frequent over the past year as Beijing pressed its claims and Manila refused to cease its resupply mission. China considers such missions to be illegal intrusions and has tried to repel the vessels.

“Our approach is above board. But what they were doing is piracy…barbaric. I call them a band of barbarians. They have no right to wear the uniform, coast guards men are supposed to be responsible for safety of life at sea (but) their actions endanger life at sea,” Mr. Trinidad said in separate comments to reporters.

“It does not speak well of a country that wants to be a global power,” Mr. Trinidad added.

US Secretary of State Antony Blinken on Wednesday held a call with Philippine Foreign Secretary Enrique Manalo to discuss China’s actions in the South China Sea, which Washington, Britain and Canada have condemned. – Reuters

Canada spikes for VNL final round berth against Brazil, Netherlands

TEAM CANADA in men‘s Volleball Nations League. — PHILIPPINE STAR/RUSSELL PALMA

Games Friday
(MOA Arena)
11 a.m. — Iran vs France
3 p.m. — Canada vs Brazil
7 p.m. — Netherlands vs Japan

DURING the media briefing of the Men’s Volleyball Nations League (VNL) at the Makati Shangrila Tuesday, Canada coach Tuomas Sammelvuo vowed to throw everything including the kitchen sink just to make the final round set late this month in Lodz, Poland.

Mr. Sammelvuo isn’t about to renege on it.

Displaying the same top-class volleyball it showed when it finished second to Poland in the Pool C FIVB qualification meet in Xi’an, China last year and sealed it a Paris Olympic slot, Canada smashed Germany, 25-19, 25-18, 25-21, to close in on accomplishing its goal.

It came just a couple of days after repulsing crowd-darling Japan, 25-21, 20-25, 25-15, 20-25, 15-10.

“We’re trying everything,” said Mr. Sammelvuo, whose wards have leapt from seventh to fifth 18 points on six wins in 10 outings.

“We have already qualified for the Olympics, we’re now trying everything to be in the final eight,” he added.

The Canadians would book a spot to the final round if they could at least snare one of their last two matches against either the gritty Brazilians Friday or the flying Dutch Saturday.

The power-spiking duo of Stephen Timothy Maar and Arthur Szwarc blasted away with 15 points apiece while crisp-hitting Eric Leoppky scattered 11 hits for a nation eyeing to eclipse its best finish in the VNL at seventh six years ago.

For the Germans, they stumbled back to 11th after loitering at ninth and closer to qualification following their shock 25-23, 25-27, 25-20, 25-23 triumph over the fancied French the day before.

There’s still some ray of hope left for the Eagles though assuming they sweep the mighty Americans Saturday and the nothing-to-lose but everything-to-gain Iranians Sunday. — Joey Villar

Gilas set for tune-up game with Taiwan Mustang before its European trip

GILAS PILIPINAS — FIBA.BASKETBALL

GILAS PILIPINAS is set for a three-day camp in Laguna and a tuneup game with the Taiwan Mustangs as it starts building up for its campaign in the qualifiers for the Paris Olympics.

Four months after going 2-0 in the February window of the FIBA Asia Cup Qualifiers, coach Tim Cone’s 12-man squad reports back to duty today at the Inspire Sports Academy in Calamba, where they will stay until Sunday for the initial phase of preparations.

On Monday, the Gilas 12 warms up for the Euro trip with a friendly against the Mustangs, Alex Cabagnot’s Taiwanese club, at the PhilSports Arena.

The Mustangs recently signed former NBA stars Dwight Howard and DeMarcus Cousins but it’s not determined whether the two will suit up in the 6 p.m. game that serves as Gilas’ sendoff activity before its Euro trip.

The tuneup is open to the public, the Samahang Basketbol ng Pilipinas announced yesterday.

A day after the duel with the Mustangs, the Nationals fly to Europe to continue their training and play the national teams of Turkey and Poland. They then proceed to Latvia for the FIBA Olympic Qualifying Tournament slated July 2 to 7 with Georgia and host Latvia as tough rivals in Group A.

Justin Brownlee, fresh from his stint with Indonesian club Pelita Jaya in the recent Basketball Champions League Asia in Dubai, leads the Gilas crew.

Meralco’s Chris Newsome and San Miguel Beer’s June Mar Fajardo and CJ Perez are expected in the fold a few days after the grueling PBA Philippine Cup finals that the Bolts won in six.

“I’m excited to get to work (with Gilas),” said Mr. Newsome, the Finals MVP. “We’re going to give ourselves a chance to try to get to the Olympics for the country.”

Scottie Thompson, Calvin Oftana, Dwight Ramos, Kevin Quiambao, Carl Tamayo, and Kai Sotto and the duo of Japeth Aguilar and Mason Amos, subbing for injured AJ Edu and Jamie Malonzo, round out the quintet. — Olmin Leyba

Trio of Wozniacki, Osaka and Kerber handed wild cards into Wimbledon

A TRIO of former world number ones in Angelique Kerber, Naomi Osaka and Caroline Wozniacki have been handed wild cards into the main draw of next month’s Wimbledon championship, the tournament organizers said on Wednesday.

Ms. Kerber, down at 224th in the world rankings after 18 months on maternity leave, won the tournament in 2018 and finished runner-up in 2016.

Ms. Osaka and Ms. Wozniacki, who both also took lengthy breaks from the tour during their pregnancies, have five Grand Slam titles between them.

Japan’s Ms. Osaka, who reached the quarterfinals of the Rosmalen Grass Court Championships last week, has progressed to the third round at Wimbledon on two occasions, while Ms. Wozniacki has made it to the last 16 six times.

Local hope and former US Open champion Emma Raducanu, who was sidelined for eight months last year after undergoing surgery on both wrists and an ankle, was also awarded a wildcard for the grasscourt Grand Slam.

Ms. Raducanu is ranked 165th in the world.

Britain’s Fran Jones, Lily Miyazaki, and Heather Watson are the other players to be awarded entry into the women’s singles.

On the men’s side, all the players to receive wild cards were from Britain, with Liam Broady the standout name.

One wild card is yet to be awarded in both the men’s and women’s draws. — Reuters

Germany cruises into Euro knockout stage with 2-0 win vs Hungary in Group A

STUTTGART, Germany — Ilkay Gundogan set up a goal for Jamal Musiala and then scored himself to give Germany a comfortable 2-0 win over Hungary in Group A on Wednesday that made the host nation the first side to qualify for the knockout stage at Euro 2024.

With two wins out of two, the Germans are guaranteed to be at least among the four best third-placed teams. They will finish in the top two of the group if Scotland fail to beat Switzerland later on Wednesday.

Mr. Musiala, playing in his hometown, gave the Germans the lead in the 22nd minute after some horrendous Hungarian defending led to the ball being poked into his path by Mr. Gundogan, and the 21-year-old needed no second invitation, hammering the ball in via a defender.

Roland Sallai had a goal ruled out in first-half stoppage time for Hungary and they wasted a number of other decent chances before Mr. Gundogan, in a man-of-the-match performance, scored in the 67th minute with a simple finish after a clinical build-up.

While few will have bet against the home side, it was in fact Germany’s first competitive win over Hungary since the 1954 World Cup final. That was the first of Germany’s four world titles, and fans are now dreaming of witnessing a fourth European Championship triumph too, and on home soil.

Watched by German Chancellor Olaf Scholz and Hungarian Prime Minister Viktor Orban, the match began in a febrile atmosphere with thousands of fans having spent the day partying around Stuttgart.

Hungary manager Marco Rossi said on the eve of the match that his side could not afford to make any mistakes. But that’s exactly what they did after 22 minutes.

Defender Willi Orban went to shoulder-barge Mr. Gundogan in his own area but came off the worse for it and fell over. The German captain was then able to pull the ball back to Mr. Musiala who smashed it in off defender Attila Fiola while some Hungary players had stopped and were appealing for a foul.

Hungary responded well, with Neuer having to dive across to the top corner to parry away a Dominik Szoboszlai freekick shortly after.

They then thought they had equalized on the stroke of halftime when Sallai headed in from a rebound, but it was ruled out for offside. And they had another chance to level after halftime when Barnabas Varga headed over the bar.

But the Germans kept applying pressure with Mr. Musiala in particular continuing to be a menace for the Hungary defense. He was also involved in the build-up when Mr. Gundogan doubled their lead in the 67th by sweeping in a low cross from Maximilian Mittelstadt. — Reuters

Scotland digs deep to stay alive with Switzerland with 1-1 draw

COLOGNE, Germany — Scotland kept alive hopes of reaching the knockout stages of a major tournament for the first time by holding Switzerland to a gripping 1-1 draw at Euro 2024 on Wednesday thanks to an early goal from Scott McTominay.

Out to rescue their battered pride after a miserable 5-1 drubbing by hosts Germany, Scotland went ahead after 13 minutes from Mr. McTominay’s deflected shot before the Swiss quickly drew level with a stunning strike from Xherdan Shaqiri following a defensive blunder.

Switzerland looked the more dangerous team and had the best of the chances in a lively match but the Scots, lifted by a rapturous travelling support, fought hard to keep them at bay, with pacy Swiss forward Dan Ndoye going close several times.

Switzerland are seeking to qualify for the knockout rounds of a sixth successive major tournament but they spurned their chance of advancing early with Group A rivals Germany, as the Scots repelled countless attacks and came close to scoring twice in a spirited second-half showing.

Scotland were transformed from the meek and disorganised side humiliated by Germany in the first game, spreading the ball around confidently and testing Switzerland in response to their exuberant support.

Switzerland coach Murat Yakin brought forward Xherdan Shaqiri back into the starting lineup after missing games amid fitness doubts, and the move paid dividends, with the veteran causing plenty of trouble for the Scottish defense.

Scotland started brightly and went in front on the break when Andy Robertson surged down the left before finding Callum McGregor who teed up Mr. McTominay for a shot that deflected into the net off Fabian Schar.

Switzerland nearly equalized when Ricardo Rodriguez fired a volley wide of the post and their pressure paid off when Mr. Shaqiri charged towards the area to intercept a poor Scottish pass and fired a curling shot into the top corner.

Mr. Ndoye nearly made it two for Switzerland when he forced a save from keeper Angus Gunn and he had a goal disallowed for offside from the resulting corner. — Reuters

Head coach changes

Considering that there are only 30 head coaching positions in the National Basketball Association (NBA), it’s fair to argue that incumbents are always under pressure to perform. The always-rising costs of chasing competitiveness have compelled owners and executives around the league to adopt a Win Now mentality. There are no ifs and buts; the need to parade a viable product on the floor is, at all times, paramount, and despite the myriad factors that go into crafting success, the onus invariably falls on the bench tacticians.

Indeed, running a franchise is big business, and there is no better barometer of prosperity than the win-loss slate. And, needless to say, the latter is inextricably tied to the performance of those in the hot seat. It’s why there have been 15 head coaching changes over the last three years. Forget the cost; for instance, Monty Williams lasted a single year even though the Pistons were so high on him that they gave him a contract worth a whopping $78 million supposedly through 2029. When expectations — even unreasonable ones — are not met, heads inevitably roll.

And so goes the carousel. Frank Vogel had 35 more wins in his belt than Williams’ 14, but it didn’t matter in the end. Once the Suns were eliminated in the first round, he was on the way out. Meanwhile, Darvin Ham’s overachieving Western Conference Finals run last year gave way to a disappointing one-and-done appearance this year, prompting Lakers brass to go for a change. Sometimes, one franchise’s trash is another franchise’s treasure. Witness how the Sixers plucked Nick Nurse from the Raptors, and how the Bucks then turned to Doc Rivers.

From the outside looking in, the owners look fickle-minded at best, willing to play musical chairs but loath to take the risk on outside-the-box options. From their vantage point, the risk is simply too great. And when the occasional leap of faith does happen, there is the possibility of embarrassment; take, for example, the Lakers’ courtship of Dan Hurley, who then rejected it with such pride and fanfare that the sting lingers even now. The problem, of course, is that pulling the trigger on a new hire does not guarantee positive results. In the other hand, not doing so when circumstances call for it is tantamount to dabbling in insanity. In short, the game within the game will continue. Spaghetti will be thrown against the wall time and again to see what sticks.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Japan’s flood of tourists prompts call to charge foreigners more

A VISITOR takes a photograph at Kenrokuen Garden in Kanazawa. — SOICHIRO KORIYAMA/BLOOMBERG

AS THE FLOOD of overseas tourists shows no sign of slowing, complaints about overcrowding and poor behavior by visitors are prompting some in Japan to look at ways of controlling the flow without losing income, including by charging higher prices for foreigners.

Foreign tourist arrivals came to 3.04 million in May, up 9.6% from the same month in 2019 and marking the third straight month at more than three million, the Japan National Tourism Organization said Wednesday. The weak yen has helped spur visitor numbers.

While many businesses benefit from visitors’ spending in aging and shrinking Japan, the crowds have started to rile some locals annoyed about being crowded out of their favorite attractions or even being unable to squeeze on to the bus to work.

In the latest sign of a growing backlash, the mayor of the western city of Himeji on Sunday said he would like to start charging foreign tourists six times more than locals to visit the city’s famed 400-year-old castle. Overseas visitors should pay around $30 to visit the World Heritage-listed Himeji Castle, compared to about $5 for local residents, the mayor said.

Osaka Governor Hirofumi Yoshimura this week expressed support for the idea and said he’d like to do the same at Osaka Castle, broadcaster FNN said.

Discussion of differential pricing has surfaced as the weak yen and relatively low inflation make Japan an affordable travel option for tourists from many parts of the world. The practice has long been common in parts of Asia with lower per capita incomes — overseas visitors pay 20 times more than Indians for entry to the Taj Mahal, for example.

Overtourism has prompted clampdowns in other parts of the world — Venice introduced a new fee for daytrippers in April, while Greece is looking to cap the number of cruise ships visiting its most popular islands.

Some Japanese communities have opted for policies that go beyond pricing strategy. In Kyoto, tourists have been banned from parts of the historic Gion geisha district, and local authorities in Fujikawaguchiko, at the base of Mt. Fuji, last month erected a barrier to stop tourists from taking photos of a convenience store with the mountain in the background — a spot that had gone viral on social media.

Yamanashi prefecture, one of the two prefectures Mt. Fuji straddles, has also limited the number of people allowed to climb the mountain this summer amid concern about overcrowding, trash and waste. Just 4,000 people a day will be allowed on the most popular route, with a new ¥2,000 ($13) fee imposed on each climber.

The number of foreign tourists visiting Himeji castle — which was completed in 1609 and is one of only a dozen “original castles” that have withstood war, earthquakes and fire — reached a record 400,000 last year, accounting for around 30% of total visitors. — Bloomberg

Climate change threat hangs over haj pilgrimage as hundreds perish in heat

Muslim pilgrims walk with umbrellas on the third day of the Satan stoning ritual, amid extremely hot weather, during the annual haj pilgrimage, in Mina, Saudi Arabia, June 18, 2024. — REUTERS

RIYADH — Nearly two million Muslims will reach the end of the haj pilgrimage this week, but extreme heat has proved fatal for hundreds who began the journey last Friday to the Kaaba at the Grand Mosque in Mecca in Saudi Arabia.

At least 562 people have died during the haj, according to a Reuters tally based on foreign ministry statements and sources.

Egypt alone has registered 307 deaths and another 118 missing, medical and security sources told Reuters, as temperatures at times soared past 51 °Celsius (124 °F).

“It was so harsh and the people cannot bear that type of heat,” said Wilayet Mustafa, a Pakistani pilgrim.

A witness said bodies lay on the side of the road near Mina, just outside Mecca, covered with the white Ihram cloth — a simple garb worn by pilgrims — until medical vehicles arrived.

Climate scientists say such deaths offer a glimpse of what is to come for the tens of millions of Muslims expected in coming decades to undertake the haj.

“The haj has been conducted in a certain way for more than 1,000 years now, and it’s always been a hot climate,” said Carl-Friedrich Schleussner, a scientific advisor at German institute Climate Analytics. “But … the climate crisis is adding to the severity of the climate conditions”.

During the haj to the Kaaba, a cube-shaped stone structure at the Grand Mosque, pilgrims perform religious rites as taught by the Prophet Mohammad to his followers 14 centuries ago.

Integral parts of the haj, Mr. Schleussner said, such as the ritual climb of Mount Arafat, have become “incredibly dangerous to human health.”

SITUATION WILL WORSEN
The timing of the haj is determined by the lunar year, which sees the pilgrimage move back by 10 days annually. While the haj is now moving towards winter, by the 2040s it will coincide with the peak of summer in Saudi Arabia.

“It is going to be very fatal,” said Fahad Saeed, a climate scientist at Climate Analytics based in Pakistan.

Heat-related deaths along the haj are not new, and have been recorded back to the 1400s. 

A lack of acclimatization to higher temperature, intense physical exertion, exposed spaces, and an older population makes pilgrims vulnerable.

Last year, more than 2,000 people suffered from heat stress, according to Saudi officials.

The situation will get much worse as the world warms, scientists said.

Saeed and Schleussner published a 2021 study in the journal Environmental Research Letters which found that if the world warms by 1.5 C (2.7 F) above pre-industrial levels, heat stroke risk for pilgrims on the haj will be five times greater.

The world is on track to reach 1.5 C of warming in the 2030s.

“People are very religiously motivated. For some of them, it is a once in a lifetime affair,” Saeed said, as each country receives a limited number of slots. “If they get a chance, they go for it.”

COOL INTERVENTIONS
In 2016, Saudi Arabia published a heat strategy that included constructing shaded areas, establishing drinking water points every 500 meters, and improving healthcare capacity.

Saudi health authorities warned pilgrims to stay hydrated and avoid being outdoors between 11 a.m. and 3 p.m. during this haj.

Pakistani pilgrim Mustafa said he had to push his 75-year-old mother in a wheelchair. When they tried to rest, they were told by police to keep moving, he said.

“I was amazed to see that there were no efforts made by the Saudi government to provide any shelter or any water,” Mr. Mustafa said.

Saudi Arabia’s government media office did not immediately respond to a request for comment.

An Egyptian medical source told Reuters the highest death tolls were among pilgrims who were not formally registered with haj authorities and were forced to stay on the streets, exposed to heat.

Egyptian pilgrim Sameh Al-Zayni said he received water from Saudi authorities, and a Reuters witness saw Saudi police handing out water and spraying crowds to cool them down.

Spraying water is only effective at temperatures below about 35 C (95 F), scientists said. If temperatures are too high, spraying water does not help and can add to the risk in humid conditions when people struggle to shed heat through sweating. — Reuters

China’s dumping probe another test of resilience for Spain’s pig farmers

REUTERS

MADRID — China’s dumping probe into European Union (EU) pork imports following duties slapped on Chinese electric  vehicles (EVs), caught Spain’s pig farmers on the hop this week, but the sector has proved it is resilient and far less vulnerable than the bloc’s car industry.

Spain supplied 22% of China’s imported pork in 2023, worth 1.2 billion euros ($1.29 billion), and stands to lose more than any of the bloc’s members from the probe into underpriced pork after the EU took aim at China’s subsidized electric vehicle imports last week.

“It was like a shock of cold water, we didn’t expect it,” said Giuseppe Aloisio, general director of the National Association of Spanish Meat Industries (ANICE), of the announcement.

“This is a concern because the volume is significant, but it will not bankrupt the pork sector if the Chinese end up deciding to impose tariffs,” he added.

The investigation was prompted by a complaint submitted by the China Animal Husbandry Association on behalf of the domestic pork industry, China said, without giving further details.

The subsidies received by the pork industry comply with World Trade Organization rules, Spain’s Agriculture Minister Luis Planas said in a press conference on Tuesday, adding that Spain is speaking to the EU about possible solutions.

With the probe likely to take at least a year to complete, there is plenty of time for negotiation.

Spain’s pork sector has shown itself to be resilient though, and the greater strategic importance of its car industry — the second-largest in Europe behind Germany — means Spain is unlikely to try and push the EU to row back its measures against Chinese EVs despite the threat of pork tariffs, said Miguel Otero, a senior analyst at Elcano Royal Institute in Madrid.

European automakers are being challenged by an influx of lower-cost EVs from Chinese rivals. The European Commission estimates their share of the EU market has risen to 8% from below 1% in 2019 and prices are typically 20% below those of EU-made models.

SACRIFICE THE PORK
“If the trade-off is you’re not going to export any pork to China but you keep the car industry as it is or you expand it, you sacrifice the pork,” Mr. Otero said.

Spain hasn’t stated a position on EV tariffs. The Economy Ministry declined to comment.

Cars and car parts accounted for 18% of Spain’s total exports and 10% of its gross domestic product in 2023, according to the Spanish Institute for Foreign Trade (ICEX). The industry was worth about 40 billion euros, according to the Spanish Carmakers Association.

The EU on June 12 placed extra duties on Chinese EVs to combat what it said were excessive subsidies and to protect an industry worth more than 1 trillion euros, according to McKinsey & Company.

Spain’s pork industry, meanwhile, withstood import bans by Russia over swine flu fears in 2009 and 2013 and after EU sanctions were imposed in 2014 on Russia for its annexation of Crimea.

Russia was Spain’s biggest customer outside the EU in 2012, importing 153 million euros of frozen pork before falling to just 180,000 euros in 2014.

The sector is ready to pivot to other markets again, as it did from Russia, said Alberto Herranz, director of Spain’s pork producers’ association Interporc.

“When the Russian market was closed, we didn’t go crying to the European Union, nor did we go crying to the Ministry of Agriculture, but what we did was to take a step forward and look for diversification,” Mr. Herranz said.

Trade with China picked up just as exports to Russia ground to a halt. Spain’s exports of frozen pork to China reached a peak of 2.5 billion euros in 2020 as an outbreak of swine flu ravaged China’s domestic production.

While China remains its largest market, exports have since fallen and are expected to keep falling as China’s production returns to normal. Meanwhile, exporters are already making contingency plans, growing other Asian markets such as Japan, South Korea and the Philippines, according to ICEX data.

Still, the bloc’s biggest pork producer, which has benefited from swine fever hitting Germany’s production, feels aggrieved it has become collateral damage in a fight between two of the world’s largest trading powers, said ANICE’s Mr. Aloisio.

“We see ourselves as spectators and victims of a train crash between great economic powers, and we are beginning to pay the price,” he said.

But the response from China could have been far worse given that the pork industry is a small percentage of EU exports to China and that producers have time to adapt and suggests an unwillingness to square up for a fight, Eurointelligence analysts wrote in a note.

“It may show that China is willing to cut a deal with the EU over the tariffs, rather than treat them as the opening salvo of a trade war,” Eurointelligence said. — Reuters

Philippine peso skids on dollar’s strength

BW FILE PHOTO

MANILA – The Philippine peso weakened against the dollar on Thursday to hit a 10-day low and lead a broader decline in Asian currencies, reflecting expectations policymakers would cut interest rates ahead of the US Federal Reserve.

The peso was last trading 0.22% lower at 58.77 to the dollar, having weakened earlier to 58.81, a level last seen on June 10 when the currency hit a 31-month intraday low.

Economists said the market focused on fundamentals rather than political noise in the country.

On Wednesday, Vice President Sara Dutere resigned from President Ferdinand Marcos Jr’s cabinet as their political alliance collapsed.

The peso has declined 5.82% since the start of the year, in line with 6.04% and 5.07% declines in the Indonesian rupiah and Taiwan’s dollar, respectively.

“The peso’s movements reflect positioning ahead of the BSP’s policy meeting as the market navigates the probability that the monetary board’s future rate cuts might not be in lockstep with the US Federal Reserve,” said Juan Paolo Colet, managing director of China Bank Capital.

The Bangko Sentral ng Pilipinas (BSP) is expected keep its policy rate steady at 6.5% for a sixth straight meeting on June 27 before it delivers a rate cut which its governor said could happen as early as August.

A rate cut in the third quarter would put the BSP ahead of major central banks including the Fed which is expected to cut rates later this year.

Ruben Carlo Asuncion, chief economist at Manila-based Union Bank of the Philippines, said the peso’s movement was largely driven by offshore developments, particularly monetary policy settings, rather than political developments.

The dollar ticked up 0.05% against a basket of currencies to 105.26, edging towards last week’s one-month top of 105.80. — Reuters