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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

DoH shares strategy to fight dengue

PUBLIC HEALTH IMAGE LIBRARY/US CENTERS DISEASE FOR CONTROL AND PREVENTION

The rainy season has come, and with it the danger of contracting dengue, according to the Department of Health (DoH). 

During a media conference last June 15, Dr. Kim Patrick Tejano, medical officer from the DoH Disease Prevention and Control Bureau, shared a strategy to fight dengue. 

“The key interventions are what the DOH emphasizes, which is the enhanced 4S strategy,” Mr. Tejano said. 

The 4S strategy aims to prevent and control interventions for various Aedes mosquito borne viral diseases, especially dengue.   

The Enhanced 4S strategies include:   

  1. Search and destroy the breeding sites of Aedes mosquitos like artificial containers with stagnant waters such as jars, flowerpots, tires, etc. Or natural habitats such as tree holes and bamboo stumps.  
  1. Secure Self Protection by wearing light-colored clothing and long sleeves, applying insect repellant on uncovered skins, and using insecticide-treated screens/curtains for doors and windows.       
  1. Seek Early Consultation with the nearest healthcare provider if any of the two Dengue symptoms persist to get supportive treatment.  
  1. Spraying and fogging hotspot areas for two consecutive weeks to prevent outbreaks, especially during the rainy season.       

Meanwhile, the DOH calls for the support of the local government units (LGU) to combat dengue in line with the DOH’s enhanced 4S strategies.  

“Sa ating mga local chief executive very important po na yung suporta and yung pagsisiguro na ang mga nasasasukpan po natin ay isinasagawa ang tamang paglilinis ng kapaligiran [For our local chief executives, it is very important that we support and ensure that our constituents are cleaning surrounding areas properly],” Dr. Tejano said.  

“(The LGUs are) encouraged to do fogging and spraying if their area has experienced a surge of dengue cases for two consecutive weeks,” Dr. Tejano added 

He further emphasized that the LGU’s should inform their constituents to consult the nearest healthcare provider if dengue symptoms persist.   

“Kapag may lagnat, sakit ng ulo, pananakit ng tiyan ay magpakonsulta na agad sa pinakamalapit na healthcare provider para po masuri kung Dengue ito,” Dr. Tejano explained, [If they have fever, headache, stomachache…consult the nearest healthcare provider to check if it is Dengue],” Dr. Tejano said.  

The health department is reaching out to communities to share awareness about the viral disease, especially since June is Dengue Awareness Month. – Edg Adrian A. Eva

Issy Cosmetics and Klued redefine beauty and skincare with TikTok Shop

In a beauty industry once limited by a lack of diversity and inclusivity, Issy Cosmetics and Klued have emerged as local beacons of positive change. Both brands have leveraged the innovative capabilities of TikTok Shop to expand their reach and promote a more inclusive definition of beauty.

Issy Cosmetics: Celebrating All Identities

Founded in 2019 by CEO Jasmin Ang and Creative Director Joel Martin Andrade, Issy Cosmetics set out to redefine beauty standards in the Philippines. The brand offers a broad spectrum of makeup and skincare products that celebrate all identities. Through TikTok Shop, Issy Cosmetics has expanded its reach and fostered greater inclusivity within the beauty industry.

“The biggest inspiration behind Issy is the lack of diversity in the local market when we started in beauty. Five years ago, in 2019, beauty was so limited. There was such a lack of options, a lack of inclusivity. When we had the chance to create our own brand, we said we would change this all. We are going to give people options, their shades, and something to be proud of locally,” Joel said.

Issy Cosmetics aims to broaden the definition of beauty by ensuring that everyone, regardless of gender identity, finds representation through its products. A key aspect of this commitment lies in offering an extensive range of shades that cater to the diverse spectrum of Filipino skin tones. By providing options that resonate with individuals across the gender spectrum, Issy Cosmetics promotes a more inclusive beauty landscape where everyone feels seen and celebrated.

Klued: Elevating Skincare Standards

Established in 2022, Klued has quickly gained recognition in the skincare industry for its commitment to providing premium quality products that are accessible to all. Co-founded by Maximo Canega and Emilio Chua, Klued aims to fill a significant gap in the market by offering tailored skincare solutions that address specific concerns.

“Klued has been designed to offer premium quality skincare that everyone can afford. There are many skincare brands out there, but the specific skincare that targets individual concerns is the gap we need to fill,” Maximo explained.

Klued has focused on making high-quality skincare accessible to a broad audience. The brand’s philosophy centers on education and transparency, ensuring that customers understand how to use their products effectively to achieve the best results. This approach has resonated with consumers, helping Klued to build a loyal customer base in a short period.

Empowering Growth Through TikTok Shop

Issy Cosmetics discovered TikTok Shop in 2022 and quickly recognized its potential. According to Allyson Jewel Andrade, Sales Director of Issy Cosmetics, “Even when TikTok Shop was still new, we already decided to onboard with them. When we started TikTok, at that time, it was just an entertainment platform. And then when we heard that they’re launching a TikTok Shop, we knew there would be great opportunities on the platform.”

The decision to embrace TikTok Shop proved to be transformative for the brand. From 2022 to 2023, Issy Cosmetics experienced a remarkable 800% growth, demonstrating the platform’s capability to significantly expand its business.

Klued also recognized the potential of TikTok Shop and saw its first product launch go viral, showcasing the platform’s accessibility and effectiveness in bridging the gap between consumers and brands. Starting with just two employees, Klued has now expanded to a team of 30.

“TikTok Shop has been very supportive to us. They constantly support us in the areas we need to improve. It’s really helpful because it’s driving a lot of our sales. Since day one, they have been there for us, and that’s why we are where we are now,” said Emilio.

Maximizing Sales Through Livestreaming

One particularly pivotal feature of TikTok Shop for both brands is its livestreaming capability. This feature allowed the brands to engage directly with customers, creating a dynamic and interactive shopping experience. For Issy Cosmetics, livestreaming accounts for around 50% of their sales. “Livestreaming can really help you increase your sales further. We want to make sure that we are able to guide our customers when they are purchasing,” said Allyson.

Klued also leverages liveselling to its advantage, capitalizing on TikTok Shop’s offerings such as LIVE coupons and free shipping to enhance the shopping experience. “There are so many opportunities that TikTok Shop offers. These are incredibly helpful for live sellers during live sessions,” emphasized Jessa Mae Alvarez, Marketing Assistant at Klued.

Both brands have utilized TikTok Shop’s live streaming feature to interact with customers in real-time, answer questions, and demonstrate product usage.

A Seamless Shopping Experience

One notable feature of TikTok Shop is its capability to seamlessly integrate product discovery and purchasing in a single, streamlined app. This integration simplifies the shopping process, enhancing the overall experience. The ease of use and innovative features of TikTok Shop have also enabled Issy Cosmetics and Klued to cultivate a strong community while achieving significant business growth.

“TikTok Shop is such a unique platform and it’s also very creative. So it helps brands like us build a community and at the same time grow the business because the customer and seller experience is very seamless. From discovery to purchase, it’s all possible in one app,” Allyson said.

Issy Cosmetics’ and Klued’s success stories highlight the transformative power of digital platforms like TikTok Shop in empowering local brands to reach unprecedented heights. By embracing TikTok Shop’s innovative features, both brands have expanded their customer base and created inclusive communities that celebrate diversity in beauty and skincare. As they continue to grow, they exemplify the potential of digital commerce to positively impact the local beauty industry.

 


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North Korea, Russia sign pact to give all available military help if other is attacked

RUSSIA’s President Vladimir Putin shakes hands with North Korea’s leader Kim Jong Un during a meeting at the Vostochny Cosmodrome in the far eastern Amur region, Russia, Sept. 13, 2023. — SPUTNIK/MIKHAIL METZEL/KREMLIN VIA REUTERS

 – North Korea and Russia agreed to provide immediate military assistance if the other side faced armed aggression, under a pact their leaders signed during Russian President Vladimir Putin’s first visit in 24 years.

The pledge is seen as the revival of a mutual defense agreement under a 1961 treaty adopted by the Cold War allies that was annulled in 1990 when the Soviet Union established diplomatic ties with South Korea.

The agreement for a “comprehensive strategic partnership” signed by Russian President Vladimir Putin and North Korean leader Kim Jong Un on Wednesday is one of the highest-profile moves in Asia by Moscow in years.

“If either side faces an armed invasion and is in a state of war, the other side will immediately use all available means to provide military and other assistance in accordance with Article 51 of the UN Charter and the laws of each country,” Article 4 of the agreement says.

Article 51 of the UN Charter provides for the right of a member country to take individual or collective self-defense actions.

The pledge by the leaders of the two countries, which are facing increasing international isolation, comes amid growing concern among the United States and its Asian allies over how much Russia would support North Korea, the only country to have tested a nuclear weapon this century.

Mr. Kim echoed Mr. Putin’s statement explicitly linking their deepening ties to fighting the “hegemonic and imperialist” policies of the West and the United State in particular, including its support for Ukraine.

The agreement also said neither side would sign any treaty with a third country that infringes on the interests of the other and will not allow its territory to be used by any country to harm the other’s security and sovereignty, KCNA said.

The two countries will take joint actions aimed at “strengthening defense capabilities to prevent war and ensure regional and international peace and security”, it said.

South Korea and the White House did not immediately have comment on the reported content of the agreement.

Japan expressed “grave concerns” about Putin’s vow not to rule out cooperation with Pyongyang on military technology.

Washington and Seoul have been increasingly alarmed by deepening military cooperation between Russia and the North, and have accused the two of violating international laws by trading in arms for use in Moscow’s war against Ukraine. Ukrainian officials have said they have found North Korean missile debris inside their country.

Russia and North Korea deny any arms trade.

On his first visit to Pyongyang since 2000, Putin thanked Kim for the support for Russian policy, and Kim reaffirmed “unconditional” and unwavering support for “all of Russia’s policies” including Putin’s war with Ukraine.

KCNA on Thursday released the full text of the agreement, which also included cooperation on nuclear energy, space exploration, food and energy security.

Cha Du Hyeogn, a former South Korean government official who is now a fellow at Asan Institute for Policy Studies in Seoul, said the mutual defense pledge is similar to the one in the 1961 treaty between the North and the Soviet Union.

The reference to the UN Charter and each country’s laws is open for interpretation and it was not clear whether the agreement would constitute an alliance, he said.

“It comes from Kim wanting to put everything in for this agreement, while Putin is being reluctant to do so,” Mr. Cha said. – Reuters

India economic inequality to persist despite roaring GDP growth

REUTERS

 – The Indian economy is likely to remain the fastest-growing major one in coming years, but a majority of independent economists and policy experts polled by Reuters are not confident it will make any difference in narrowing stark economic inequality.

Despite over 8% economic growth last fiscal year and a roaring stock market in Mumbai that is easily one of the world’s most expensive, New Delhi still distributes free food grains to more than 800 million of its 1.4 billion people.

Prime Minister Narendra Modi, sworn in for a third term with the support of regional parties after a shock election where his Bharatiya Janata Party lost its sizable majority in parliament, has retained most ministers from his second one.

Yet rising economic inequality – around its highest in decades – and high youth unemployment were widely reported as reasons for the electoral drubbing after securing sweeping victories in 2014 and 2019 on development and economic reform platforms.

A nearly 85% majority of development economists and policy experts, 43 out of 51, in a May 15-June 18 Reuters poll, said they were not confident economic inequality would significantly reduce over the next five years, including 21 who said they had no confidence at all.

Only six said they were confident and two said very confident. These are separate from private economists who regularly forecast economic data and interest rates.

“Acknowledging that it is a problem will be a good first step … Currently, reduction of economic inequality is not a policy objective of decision-makers,” said Reetika Khera, a development economist at the Indian Institute of Technology in New Delhi.

“Inequality is not something that will go away on its own … it needs proactive government interventions.”

Even for a developing economy, income inequality in India is too extreme, according to a March report from the World Inequality Lab.

However, not everyone agrees.

“I don’t think the inequality metrics are meaningful for India. The key issue is not inequality but how the bottom of the pyramid fares economically. This is not a function of how the top does,” said Nagpurnanand Prabhala, finance professor at Johns Hopkins University.

India has the second-highest number of billionaires in Asia but has tens of millions who depend on the government’s 100 days minimum guaranteed wage employment program, digging wells, building roads, and filling potholes for about $4 a day.

“The present government has created an economic system that shrunk the middle-income group considerably. The poor are on public dole … the rich are on public cross-subsidy using crony capitalism,” said Saibal Kar, professor of industrial economics at the Center for Studies in Social Sciences.

“The economic and social freedoms are low owing to repressive public policies. This has to change. Unless it changes, inequality will rise further.”

 

SKILLS NEEDED, NOT JUST JOBS

Asked to rate the quality of India’s economic growth over the past 10 years, a near-80% majority of economists surveyed, 42 of 53, said it was not inclusive, with 17 saying not at all. Eight said fairly inclusive and three said inclusive.

And yet 60%, 32 of 53, said India would maintain or exceed the current solid GDP growth rate over the next five years. The rest said it will fall short.

While the Modi government has set a target of turning India into a developed economy by 2047, several experts in the survey said the government should first improve workers’ skills, create more jobs and focus on inclusive growth.

In December, the government’s chief economic adviser said the subsidized grain distribution, as well as spending on education and health had helped to distribute income more equally.

During the election campaign, a government document showed Modi wanted to focus on 70 areas of improvement including workforce skills and vocational training.

Over 90% of experts polled, 49 of 54, who answered a separate question said unemployment would be the biggest economic challenge for the government over the next five years.

The unemployment rate was at 7.0% in May, according to the Center for Monitoring Indian Economy, a think-tank, up from around 6% before the pandemic.

“Most countries that have experienced more rapid growth did it on the basis of a farm-to-factory structural transformation,” said Parikshit Ghosh, professor at the Delhi School of Economics, adding manufacturing as a share of GDP has hovered around 15% for about 30 years.

“Of the multiple factors behind this, perhaps the most important is the failure to invest seriously in education.”

India spends around 3% of GDP on public education, half the 6% the government’s National Policy on Education recommends.

Other experts pointed out the ongoing challenges presented by a society still mired in caste and class divisions.

“We don’t even talk about the cleavage that has been ripping our society apart for thousands of years now in our living rooms – we still live in a world where Dalit families are cleaning toilets in urban and rural areas, generation after generation,” said Aditi Bhowmick, a public policy expert, who previously worked as India Director at Development Data Lab. – Reuters

Bank of England to keep rates at 16-year high before UK election

People walk outside the Bank of England in the City of London financial district in London, Britain, May 11, 2023. — REUTERS

 – Britain’s central bank looks on course to hold interest rates at a 16-year high of 5.25% on Thursday as underlying inflation pressures prove persistent, depriving Prime Minister Rishi Sunak of a much-needed boost ahead of a July 4 election.

Bank of England Governor Andrew Bailey opened the door early last month to a rate cut, saying he was “optimistic that things are moving in the right direction” and that a June rate cut was an option – although no fait accompli.

But despite data on Wednesday showing headline inflation fell back to the BoE’s 2% target for the first time in nearly three years in May – reaching its goal quicker than in the United States or euro zone – the medium-term picture is now less reassuring.

Services price inflation has fallen less than the BoE expected at the time of the last meeting – only declining to 5.7% rather than 5.3% – and private-sector wage growth is almost twice the rate the BoE judges as compatible with 2% inflation.

Last month the central bank forecast inflation would rise to around 2.6% by the end of the year, as the effect of recent cuts to regulated household energy bills faded.

None of the 65 economists in a Reuters poll last week said they expected the BoE to follow the lead of the European Central Bank and cut rates this month, with the next statement on Aug. 1 looking by far the most probable start date for an easing cycle.

Instead, the expectation is for a repeat of May’s 7-2 vote split, when Deputy Governor Dave Ramsden and external Monetary Policy Committee member Swati Dhingra voted for a quarter-point cut.

“We think the Bank of England is left waiting for more reassuring data … either in the shape of a more decisive moderation in services CPI or with all other broader signals … pointing in a softer direction,” Victoria Clarke, chief UK economist at Santander, said.

While unemployment is at a two-and-a-half year high of 4.4%, economic growth this year has been reasonable by Britain’s recent weak standards.

Financial markets are doubtful about an August rate cut. On Wednesday they priced in only a 30% chance, with a first move more likely in September and a risk of a delay until November, similar to expectations for the US Federal Reserve.

Either way, any cut is likely to be too late for Mr. Sunak, whose Conservative Party is around 20 points behind the opposition Labour Party in the pre-election polls.

While Mr. Sunak has sought credit for the fall in inflation since he took office in October 2022, when it was at a 41-year high of 11.1%, Labour blames high mortgage rates on economic mismanagement by the Conservatives’ previous leader, Liz Truss.

Since the start of the election campaign the BoE has been in a self-imposed period of silence, cancelling public events.

Before that, BoE Chief Economist Huw Pill had described an excessive focus on a June rate cut as “ill advised” but both he and Deputy Governor Ben Broadbent – who steps down at the end of this month – said a rate cut over the summer was possible.

The BoE began to raise rates in December 2021, earlier than other major central banks, and they reached their current peak in August 2023. – Reuters

 

Fossil fuel use, emissions hit records in 2023, report says

REUTERS

 – Global fossil fuel consumption and energy emissions hit all-time highs in 2023, even as fossil fuels’ share of the global energy mix decreased slightly on the year, the industry’s Statistical Review of World Energy report said on Thursday.

Growing demand for fossil fuel despite the scaling up of renewables could be a sticking point for the transition to lower carbon energy as global temperature increases reach 1.5C (2.7F), the threshold beyond which scientists say impacts such as temperature rise, drought and flooding will become more extreme.

“We hope that this report will help governments, world leaders and analysts move forward, clear-eyed about the challenge that lies ahead,” Romain Debarre of consultancy Kearney said.

Last year was the first full year of rerouted Russian energy flows away from the West following Moscow’s invasion of Ukraine in 2022, and also the first full year without major movement restrictions linked to the COVID-19 pandemic.

Overall global primary energy consumption hit an all-time high of 620 Exajoules (EJ), the report said, as emissions exceeded 40 gigatons of CO2 for the first time.

“In a year where we have seen the contribution of renewables reaching a new record high, ever increasing global energy demand means the share coming from fossil fuels has remained virtually unchanged,” Simon Virley of consultancy KPMG said.

The report recorded shifting trends in fossil fuel use in different regions. In Europe, for example, the fossil fuel share of energy fell below 70% for the first time since the industrial revolution.

“In advanced economies, we observe signs of demand for fossil fuels peaking, contrasting with economies in the Global South for whom economic development and improvements in quality of life continue to drive fossil growth,” Energy Institute Chief Executive Nick Wayth said.

Industry body the Energy Institute, together with consultancies KPMG and Kearney, has published the annual report since 2023. They took over from BP BP.L last year, which had authored the report, a benchmark for energy professionals, since the 1950s.

Fossil fuel accounted for almost all demand growth in India in 2023, the report said, while in China fossil fuel use rose 6% to a new high.

But China also accounted for over half of global additions in renewable energy generation last year.

“China adding more renewables than the rest of the world put together is remarkable,” KPMG’s Virley told reporters.

 

Here are some highlights from the report on 2023:

CONSUMPTION

  • Global primary energy demand rose by 2% in 2023 from 2022, to 620 EJ.
  • Fossil fuel use rose 1.5% to 505 EJ, which accounted for 81.5% of the overall energy mix, down by 0.5% from 2022.
  • Fossil fuel use did not increase in a single European country in 2023.
  • Electricity generation rose by 2.5% in 2023, up slightly from 2.3% of growth the previous year.
  • Renewable fuel generation (excluding hydro) gained 13% to a new record high of 4,748 terawatt-hours (TWh).
  • Renewables’ share of the overall energy mix excluding hydro was 8%, up from 7.5% in the 2022 report.
  • Including hydro renewables accounted for 15% of the global mix.

 

OIL

  • Oil consumption exceeded 100 million bpd in 2023 for the first time ever, following a 2% year-on-year rise.
  • Oil supply growth was met by non-OPEC+ producers, with US output gaining 9% on the year.
  • China overtook the U.S. as the country with the largest refining capacity in the world last year at 18.5 million bpd, though refining volumes still lagged behind at 82% utilisation vs the US’ 87%.
  • Global gasoline consumption hit 25 million bpd last year, just above its 2019 pre-pandemic level.
  • Biofuels production increased by 8% to 2.1 million bpd in 2023, driven by gains in the U.S. and Brazil.
  • The US, Brazil, and Europe accounted for 80% of global biofuels consumption.

 

NATURAL GAS

  • Global gas production and consumption remained relatively flat on the year in 2023.
  • LNG supply rose by almost 2% to 549 billion cubic metres (bcm).
  • The US overtook Qatar as the leading global supplier of LNG after a 10% rise in production.
  • Overall European gas demand was down 7% on the year in 2023.
  • Russia’s share of European gas supply was just 15% in 2023, from 45% in 2021.

 

COAL

  • Coal consumption hit a new high of 164 EJ in 2023, up 1.6% on the year, driven by China and India.
  • India’s coal consumption exceeded that of Europe and North America combined.
  • US coal consumption fell by 17% in 2023 and has halved in the last decade.

 

RENEWABLES

  • The record high in renewable generation was driven by higher wind and solar capacity, with 67% more additions in those two categories in 2023 than 2022.
  • As much as 74% of net growth in overall power generation came from renewables.
  • China accounted for 55% of all renewable generation additions in 2023, and was responsible for 63% of new global wind and solar capacity.

 

EMISSIONS

  • Emissions grew by 2% on the year to exceed 40 gigatonnes.
  • Emissions rose despite the slight drop in fossil fuels’ share of the energy mix, because emissions within the fossil fuels category became more intense as oil and coal use rose and gas held steady.
  • The report notes that since 2000, emissions from energy have increased by 50%.

– Reuters

UK election pledges fall short of $48 bln health funding gap, think tank says

REUTERS

 – Election pledges by Britain’s governing Conservatives and the opposition Labour Party do not set out how they plan to meet a 38 billion pound ($48 billion) funding shortfall in the National Health Service (NHS) in England, a report said on Thursday.

The performance of the state-run NHS is a major concern for voters ahead of a national election on July 4, as it has been hobbled by COVID and industrial action, while Prime Minister Rishi Sunak has struggled to bring down long waiting lists.

The next government will need to increase healthcare funding by 4.5% per year in real terms over the next five years to help with COVID recovery, meet rising needs and improve services, analysis by the Health Foundation think tank said.

That means an extra 46 billion pounds of funding is needed by 2029/30, but current planned increases in public spending would only deliver an 8 billion pound increase in the health budget, and neither leading party has clear plans to substantially close that gap.

“The health service is in crisis and all the main political parties have said they want to fix it – yet the funding they have so far promised falls well short of the level needed to make improvements,” said Anita Charlesworth, Director of the Health Foundation’s REAL Centre.

While Labour and the Conservatives have proposed extra funding for a handful of specific health policies, neither have outlined general increases for baseline NHS spending.

The winning party is set to hold a spending review, which could allocate more funding to the NHS at the expense of other departments.

However, without such allocations, both Labour and Conservative plans for healthcare funding would leave the NHS with tighter budgets than under the austerity policies pursued by the Conservative-Liberal Democrat coalition ten years ago.

“An incoming government therefore will face incredibly difficult choices. Either increased taxes to provide more funding, reduce spending on other public services, or see the NHS do less,” Ms. Charlesworth said.

“The risk … if you cut other public services to protect the NHS, is that over the longer term, you actually make the health of the population worse, and the challenge facing the NHS even greater.”

Labour says it will deliver growth, helping it plug gaps in public finances without raising personal taxes. Ms. Charlesworth said the Health Foundation had not modeled different growth.

“If the economy grew more strongly, this problem would be much smaller,” she said. – Reuters

Most Japan firms see no need to follow the US with tariffs on China

REUTERS

 – Most Japanese companies see no need for their government to follow the US in raising tariffs on Chinese imports, saying excessive production capacity in China’s industrial sector does not affect them, a Reuters survey showed on Thursday.

US President Joe Biden last month unveiled steep tariff increases on an array of Chinese goods including electric vehicles, batteries and semiconductors, criticizing Beijing for generous subsidies and policies that he said help flood global markets with cheap goods.

The European Union has also slapped hefty duties on EV imports and the Group of Seven major economies, which includes Japan, last week echoed concerns about what they called harmful non-market practices by China.

But 61% of respondents to the survey, conducted June 5-14, said there was no need for Japan to embark on similar measures. The rest said Japan should. Around 53% said China’s excessive production capacity had little to no impact on their business.

“It could lead to an escalation in measures and countermeasures against each other and economic conditions will get worse,” a manager at a chemical company wrote in the comment section of the poll.

In response to the tariffs, China has accused the United States of subverting its own free trade principles and has said the G7 statement lacks factual basis.

The survey of 492 companies was conducted for Reuters by Nikkei Research, with firms responding on condition of anonymity. Roughly 230 companies responded.

The companies were also asked whether they think a pledge by Prime Minister Fumio Kishida to have wages consistently climb faster than inflation was attainable but only 7% did.

“I’m afraid there are many mid-sized and small companies that just can’t make ends meet if they implement wage hikes that keep pace with inflation,” a manager at a wholesale company wrote.

Half said the goal was not attainable while 43% said it was hard to tell.

As a temporary measure to cushion the economic blow from rising inflation, Mr. Kishida’s government is cutting annual income tax by 30,000 yen ($190) and the residential tax by 10,000 yen for each taxpaying citizen who can also claim the same amount in tax breaks for dependents and a spouse with limited income.

But 69% of the companies in the poll saw the measure as having little or no effect in stimulating consumer spending.

On domestic politics, 54% of the companies expect Mr. Kishida to be replaced as prime minister by the end of the year in the wake of a fund-raising scandal.

The ruling Liberal Democratic Party (LDP) has said more than 80 of its lawmakers received proceeds from fund-raising events that were kept off the books. Prosecutors have indicted three lawmakers.

An Asahi newspaper poll conducted last week showed support for Mr. Kishida’s government fell to 22%, down 2 percentage points from a month ago and the lowest since he took office in October 2021.

Former Defense Minister Shigeru Ishiba was corporate Japan’s top choice for the country’s next leader, with 24% of firms deeming him a suitable successor. Economic Security Minister Sanae Takaichi was next with 14%.

A security maven, Mr. Ishiba regularly ranks high in voter surveys on future prime ministers but is less popular with fellow LDP lawmakers whose backing is necessary to win the party’s leadership election.

About 80% of companies said they want the LDP and junior coalition partner Komeito to remain in power if Mr. Kishida calls a snap election this year.

If the coalition government were to lose power, “I fear that political confusion might develop into economic confusion and the weakening of Japan’s competitiveness,” a manager at a food company wrote.

Only 6% of the companies surveyed wanted a government led by the Constitutional Democratic Party of Japan, currently the largest opposition party. – Reuters

Canada to ban open-net salmon farms in British Columbia waters by 2029

STOCK PHOTOS | Image by Barbara Jackson from Pixabay

Canada will ban open-net salmon farms off the coast of British Columbia by the middle of 2029 in order to help protect dwindling wild Pacific salmon populations, the federal government said on Wednesday.

Salmon are a culturally and ecologically significant species on Canada’s west coast, but more than half of the 9,000 distinct populations in British Columbia are in a state of decline, according to the Pacific Salmon Foundation.

The province has dozens of open-net salmon farms, which campaigners say can spread lice and disease to wild fish. In 2019 Liberal Prime Minister Justin Trudeau pledged to phase out open-net farms by 2025.

In a statement released on Wednesday, Fisheries and Oceans Minister Diane Lebouthillier said existing salmon aquaculture licenses will be renewed for five years to ensure a successful transition, but with stricter conditions around managing sea lice on farmed fish, reporting requirements for the industry, and monitoring of marine mammal interactions.

“It’s great to see the federal government commit to concrete deadlines, even though they do not meet the government’s original commitment to transition from open-net pens by 2025 or the urgency of the moment given the dire state of many wild salmon runs,” said Kilian Stehfest, marine conservation specialist for the David Suzuki Foundation.

Salmon farming supports 7,000 jobs in coastal communities and contributes about C$1.5 billion ($1.09 billion) annually to the provincial economy, according to the BC Salmon Farmers Association.

A number of First Nations and coastal communities rely on open-net salmon farms for their livelihood and the government intends to release a draft salmon aquaculture transition plan by the end of July.

From July 1 this year only closed-containment systems on land or in the sea will be considered for new salmon aquaculture licenses.

Ms. Lebouthillier said the government recognized closed-containment systems would be a more expensive investment and planned to issue nine-year licenses to successful applicants to ensure greater certainty.

While some Indigenous communities in British Columbia have been calling for an end to open-net salmon farms, others criticized Ottawa for lack of adequate consultation and the speed of the phase-out.

“Five years to transition to land-based or closed-containment in my territory is the same as shutting our operations down,” said Hereditary Chief Hasheukumiss of the Ahousaht First Nation on the west coast of Vancouver Island at a press conference.

The British Columbia government urged Ottawa to support local communities through the transition period by funding new economic opportunities and creating good jobs.

“We recognize the importance of meaningful and thoughtful engagement with First Nations partners and communities as we move forward, in order to ensure that economic impacts are mitigated,” federal Natural Resources Minister Jonathan Wilkinson said in a statement. – Reuters

Globe earns spot on Fortune Southeast Asia 500 list

Inaugural regional list includes largest companies in the region

Globe, a leading telco and expanding technology company in the Philippines, has earned a spot on the inaugural Fortune Southeast Asia 500 list, cementing its stature as one of the largest companies in the region.

Globe ranked 111, with revenues at $3.240 billion and profits of $441 million as of end 2023. It joins 38 companies from the Philippines that made the list.

“Globe’s inclusion on the first-ever Fortune Southeast Asia 500 list is an affirmation of our success in serving our customers guided by our purpose, delivering products and services that impact lives and solving the pain points of Filipinos. The company grew serving millions of customers locally and now abroad. Amid the new digital landscape, we envision to continue growing through responsible use of technology to fill in the societal gaps and allow our country to reach economic prosperity,” said Ernest Cu, President and CEO of Globe.

“To uplift the nation is our North Star. This recognition inspires us to keep innovating to serve our customers as their needs evolve,” he added.

Globe has been the country’s mobile leader based on revenue market share for over seven years. It has 61.3 million subscribers as of Q1 2024, including 58.8 million mobile subscribers, 1.7 million home broadband customers, and 797,000 landline subscribers.

It employs over 7,200 employees and provides business to over 414,000 load retailers, distributors and business partners across the country as of the first quarter of this year.

Fortune’s new ranking indexed companies by total revenues as of Dec. 31, 2023. It said the list ”reflects the rise and fall of energy markets, multinational supply chains and tourism in some of the world’s most dynamic economies.”

“The Fortune Southeast Asia 500 reflects a dynamic and fast-changing region — one whose core economies are growing notably faster than those of Europe or the US. This is partly due to Southeast Asia taking on far greater significance in the global economy, not least because a host of Global 500 multinationals have shifted more of their supply chains to Southeast Asian nations,” says Clay Chandler, executive editor, Fortune Asia.

Fortune said companies on the regional list “join an elite group of firms recognized under the Fortune 500 franchise,” which includes Fortune 500, Fortune Global 500, Fortune Europe 500, and Fortune China 500.

Learn more about Fortune Southeast Asia 500 here. To know more about Globe, visit www.globe.com.ph.

 


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