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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

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