Home Blog Page 1618

Vietnam tycoon on death row for fraud illegally moved money abroad

JOHN GUCCIONE-PEXELS

HANOI — Vietnam real estate tycoon Truong My Lan, sentenced to death in the country’s largest-ever financial fraud case, had illegally transferred money abroad, according to police, with state media on Thursday reporting $4.5 billion had been moved.

Police said late on Wednesday an investigation into those transfers and money laundering has been completed, but gave no further details.

State media said on Thursday that Ms. Lan had illegally transferred $1.5 billion out of Vietnam and moved $3 billion into the country. The reports did not specify which countries were the recipients or origins of that money.

A court in April sentenced Ms. Lan to death for her role in siphoning off more than $12 billion from Saigon Joint Stock Commercial Bank (SCB), which she effectively controlled through dozens of proxies, despite rules strictly limiting large shareholding in lenders.

SCB did not immediately respond to a request for comment on Thursday and Ms. Lan’s legal representatives could not be reached.

Ms. Lan is also accused of laundering 445.7 trillion dong, including the money she and her accomplices siphoned off from SCB and from her illegal bond issuance, Thanh Nien newspaper reported on Thursday. — Reuters

In apparent blow to Biden plan, Hamas leader demands full end to Gaza war

Palestinian group Hamas’ top leader, Ismail Haniyeh speaks during a press conference in Tehran, Iran, March 26, 2024. — MAJID ASGARIPOUR/WANA (WEST ASIA NEWS AGENCY) VIA REUTERS

CAIRO/JERUSALEM — The leader of Hamas said on Wednesday the group would demand a permanent end to the war in Gaza and Israeli withdrawal as part of a ceasefire plan, dealing an apparent blow to a truce proposal touted last week by US President Joseph R. Biden.

Israel, meanwhile, said there would be no halt to fighting during ceasefire talks, and launched a new assault on a central section of the Gaza Strip near the last city yet to be stormed by its tanks.

The remarks by Hamas leader Ismail Haniyeh appeared to deliver the Palestinian militant group’s reply to the proposal that Biden unveiled last week. Washington had said it was waiting to hear an answer from Hamas to what Mr. Biden described as an Israeli initiative.

“The movement and factions of the resistance will deal seriously and positively with any agreement that is based on a comprehensive ending of the aggression and the complete withdrawal and prisoners swap,” Mr. Haniyeh said.

Asked whether Mr. Haniyeh’s remarks amounted to the group’s reply to Mr. Biden, a senior Hamas official replied to a text message from Reuters with a “thumbs up” emoji.

Washington is still pressing hard to reach an agreement. Central Intelligence Agency director William Burns met senior officials from mediators Qatar and Egypt on Wednesday in Doha to discuss the ceasefire proposal.

Since a brief week-long truce in November, all attempts to arrange a ceasefire have failed, with Hamas insisting on its demand for a permanent end to the conflict, while Israel says it is prepared to discuss only temporary pauses until the militant group is defeated.

Mr. Biden has repeatedly declared that ceasefires were close over the past several months, only for no truce to materialize. Notably, Mr. Biden said in February that Israel agreed to a ceasefire by the start of the Ramadan Muslim holy month on March 10, a deadline which passed with military operations in full swing.

But last week’s announcement came with far greater fanfare from the White House, and at a time when Israeli Prime Minister Benjamin Netanyahu is under mounting domestic political pressure to chart a path to end the eight-month-old war and negotiate the release of Israeli hostages held by Hamas.

Three US officials told Reuters that Mr. Biden, having obtained Israel’s agreement for the proposal, had deliberately announced it without warning the Israelis he would do so, to narrow the room for Mr. Netanyahu to back away.

“We didn’t ask permission to announce the proposal,” said a senior US official granted anonymity to speak freely about the negotiations. “We informed the Israelis we were going to give a speech on the situation in Gaza. We did not go into great detail about what it was.”

Hamas, which rules Gaza, precipitated the war by attacking Israeli territory on Oct. 7, killing around 1,200 people and capturing more than 250 hostages, according to Israeli tallies. Around half of the hostages were freed in the war’s only truce so far, which lasted a week in November.

Israel’s military assault on Gaza has killed more than 36,000 people, according to health officials in the territory, who say thousands more dead are feared buried under the rubble. 

ISRAEL LUKEWARM
Although Mr. Biden described the ceasefire proposal as an Israeli offer, Israel’s government has been lukewarm in public. A top Netanyahu aide confirmed on Sunday Israel had made the proposal even though it was “not a good deal.”

Far-right members of Mr. Netanyahu’s government have pledged to quit if he agrees to a peace deal that leaves Hamas in place, a move that could force a new election and end the political career of Israel’s longest-serving leader. Centrist opponents who joined Mr. Netanyahu’s war cabinet in a show of unity at the outset of the conflict have also threatened to quit, saying his government has no plan.

Meanwhile, Defense Minister Yoav Gallant said there would be no let-up in Israel’s offensive while negotiations over the ceasefire proposal were under way.

“Any negotiations with Hamas would be conducted only under fire,” Mr. Gallant said in remarks carried by Israeli media after he flew aboard a warplane to inspect the Gaza front.

Israel announced a new operation against Hamas in central Gaza on Wednesday, where Palestinian medics said airstrikes had killed dozens of people.

Early on Thursday, the Hamas-run Gaza government media office said Israeli missiles killed at least 27 people and injured dozens who were sheltering at a U.N. school in Nuseirat in central Gaza.

Israel’s military said there was a Hamas compound inside the school and fighters who took part in the Oct. 7 attack on Israel “were eliminated.” It said that before the strike by Israeli fighter jets, the military took steps to reduce the risk of harm to civilians. There was no immediate comment from Hamas.

The armed wings of Hamas and Islamic Jihad said they had fought gun battles with Israeli forces on Wednesday in areas throughout the enclave and fired anti-tank rockets and shells.

Two children were among the dead laid out on Wednesday in the city’s Al Aqsa Martyrs Hospital, one of the last hospitals functioning in Gaza. Mourners said the children had been killed along with their mother, who had been unable to leave when others in the neighborhood did.

“This is not war, it is destruction that words are unable to express,” said their father Abu Mohammed Abu Saif. — Reuters

Top news app in US has Chinese origins and ‘writes fiction’ with the help of AI

NORDWOOD THEMES-UNSPLASH

LONDON — Last Christmas Eve, NewsBreak, a free app with roots in China that is the most downloaded news app in the United States, published an alarming piece about a small town shooting. It was headlined “Christmas Day Tragedy Strikes Bridgeton, New Jersey Amid Rising Gun Violence in Small Towns.”

The problem was, no such shooting took place. The Bridgeton, New Jersey police department posted a statement on Facebook on Dec. 27 dismissing the article — produced using artificial intelligence (AI) technology — as “entirely false.”

“Nothing even similar to this story occurred on or around Christmas, or even in recent memory for the area they described,” the post said. “It seems this ‘news’ outlet’s AI writes fiction they have no problem publishing to readers.”

NewsBreak, which is headquartered in Mountain View, California and has offices in Beijing and Shanghai, told Reuters it removed the article on Dec. 28, four days after publication.

The company said “the inaccurate information originated from the content source,” and provided a link to the website, adding: “When NewsBreak identifies any inaccurate content or any violation of our community standards, we take prompt action to remove that content.”

The operators of the website, findplace.xyz, did not respond to a request from Reuters for comment. The police declined to provide further comment.

As local news outlets across America have shuttered in recent years, NewsBreak has filled the void.

Billing itself as “the go-to source for all things local,” Newsbreak says it has over 50 million monthly users. It publishes licensed content from major media outlets, including Reuters, Fox, AP and CNN as well as some information obtained by scraping the internet for local news or press releases which it rewrites with the help of AI. It is only available in the US

But in at least 40 instances since 2021, the app’s use of AI tools affected the communities it strives to serve, with Newsbreak publishing erroneous stories; creating 10 stories from local news sites under fictitious bylines; and lifting content from its competitors, according to a Reuters review of previously unreported court documents related to copyright infringement, cease-and-desist emails and a 2022 company memo registering concerns about “AI-generated stories.”

Reuters spoke to seven former NewsBreak employees, including five who said most of the engineering work behind the app’s algorithm is carried out in its China-based offices. The former employees requested anonymity, citing confidentiality agreements with NewsBreak.

Two local community programs assisting disadvantaged people told Reuters they were impacted by erroneous stories produced by NewsBreak’s AI.

On three occasions in January, February and March, Food to Power, a Colorado-based food bank said it had to turn people away because NewsBreak stated incorrect times of food distributions. The charity complained to NewsBreak in a January 30 email to NewsBreak’s general customer support email address, which Reuters has reviewed. The charity said it received no response.

Harvest912, a charity in Erie, Pennsylvania emailed NewsBreak about two inaccurate, AI-based news stories which said it was holding a 24-hour foot-care clinic for homeless people, asking the outlet to “cease and desist” erroneous coverage.

“You are doing HARM by publishing this misinformation – homeless people will walk to these venues to attend a clinic that is not happening,” Harvest912 told NewsBreak, in a January 12 email seen by Reuters.

In response to Reuters’ questions, NewsBreak said it removed all five articles about the charities after learning they were erroneous and that the articles were based on incorrect information on some of the charities’ web pages.

Without providing a reason to Reuters, NewsBreak added a disclaimer to its homepage in early March, warning that its content “may not always be error-free”.

Newsbreak generates revenue by showing ads to its users, who are predominantly female, above the age of 45, without college degrees, and live in suburban or rural parts of the US, according to the seven former employees and a 2021 company presentation reviewed by Reuters.

The company launched in the US in 2015 as a subsidiary of Yidian, a Chinese news aggregation app. Both companies were founded by Jeff Zheng, the CEO of Newsbreak, and the companies share a US patent registered in 2015 for an “Interest Engine” algorithm, which recommends news content based on a user’s interests and location.

NewsBreak told Reuters that the patent was assigned by Zheng to both companies because “some of the concepts were developed from Jeff’s time at Yidian” and that NewsBreak is “US-based” and “US-invested.” The shared patent has “absolutely no bearing on the company and its operations,” NewsBreak said in written responses to Reuters, describing the technology referenced in the patent as “outdated”.

COMPANY MEMO
A May 2022 company memo from a NewsBreak consultant to Mr. Zheng, reviewed by Reuters, raised concerns about NewsBreak’s use of AI tools to re-publish stories from local news sites under five fictitious bylines.

“I cannot think of a faster way to destroy the NewsBreak brand,” Norm Pearlstine, former Executive Editor at the Wall Street Journal and the Los Angeles Times who was working at the time as a consultant to NewsBreak, wrote in the memo to Mr. Zheng.

In an interview after NewsBreak gave him permission to speak with Reuters, Mr. Pearlstine said he learned of the practice from a NewsBreak colleague.

“I question the legality of creating fake accounts using content publishers put behind their paywalls. If I had learned about the practice while at the LA Times, I would have instructed our lawyer to seek a restraining order and sue for damages,” wrote Mr. Pearlstine, whose six-month consulting role at NewsBreak in 2022 consisted of advising the company about US editorial businesses.

Mr. Pearlstine, who confirmed the memo was authentic, attributed the lapse to a lack of journalistic experience. “A fair number of people on the staff were either new to journalism or new to the US market. That was part of the reason I felt I had to be very direct and very explicit in explaining why I thought this was important,” he told Reuters.

NewsBreak said the news stories referenced in Mr. Pearlstine’s memo were a “limited experiment in three US counties” to aggregate third-party content, and that the effort was disbanded after producing ten articles. The company denied going behind paywalls and said it used “snippets” of articles that were publicly visible to produce complete news stories using OpenAI.

NewsBreak also pointed Reuters towards Mr. Zheng’s emailed response to Mr. Pearlstine, saying he recognized the problem and asked his team to fix it.

OpenAI told Reuters its policies prohibited using its technology to mislead people.

In 2022, Patch Media, which operates digital local news feeds in every US state, reached a $1.75 million settlement in a lawsuit against NewsBreak for copyright infringement, according to court documents reviewed by Reuters, which alleged that NewsBreak republished Patch’s news stories without permission or credit.

Patch Media did not respond to a request for comment. NewsBreak said the settlement was not an admission of wrongdoing.

Emmerich Newspapers, which operates newspapers in Mississippi, Arkansas and Louisiana, reached a 2021 settlement with NewsBreak in a lawsuit alleging copyright infringement related to NewsBreak’s use of Emmerich’s content without permission. NewsBreak said the settlement was “amicable.”

Another copyright lawsuit is ongoing. The two parties are “embroiled in additional lawsuits which we are vigorously defending against,” NewsBreak said.

Wyatt Emmerich, the company’s president, said the lawsuit against NewsBreak involved “verbatim copying of content”. He added: “What worries me in the future is that news aggregators could use artificial intelligence to slightly rewrite our stories which would make proving copyright infringement much more difficult. I have witnessed instances of this happening already on news aggregation sites.”

CHINA ROOTS
NewsBreak is a privately held start-up, whose primary backers are private equity firms San Francisco-based Francisco Partners, and Beijing-based IDG Capital, NewsBreak told Reuters.

Francisco Partners declined to answer questions about its investment in NewsBreak. IDG did not respond to repeated emailed requests for comment.

In February, IDG Capital was added to a list of dozens of Chinese companies the Pentagon said were allegedly working with Beijing’s military. IDG Capital told Bloomberg in February that it has no association with the Chinese military and does not belong on that list. NewsBreak did not comment on the finding.

Yidian, the Chinese aggregation company, divested from NewsBreak in 2019 because “its management team at the time did not understand the U.S. market”, Zheng said. Until then, Li Ya, the president of Phoenix New Media, a Chinese state-linked media firm which held a 46.9% stake in Yidian, had been a director at NewsBreak, according to corporate records.

Yidian continued to describe NewsBreak as its U.S. version on its website until 2021, according toThe Wire China.

Yidian in 2017received praise from ruling Communist Party officials for its efficiency in disseminating government propaganda. Reuters found no evidence that NewsBreak censored or produced news that was favourable to the Chinese government.

A NewsBreak spokesperson said there was no ongoing commercial relationship with Yidian. Yidian, Phoenix New Media and Li Ya did not respond to requests from Reuters for comment.

About half of NewsBreak’s 200 employees are China-based where they are engaged in R&D, the company said.

A 2022 company roster reviewed by Reuters showed that 100 of NewsBreak’s 137 engineers at the time were based in China.

Five of the former NewsBreak employees said CEO Zheng divides his time between China and the United States.

Zheng, who was born in China, is a permanent resident of the United States and his family relocated to the U.S. early last year, the company said.

Reuters found five job advertisements NewsBreak posted on Chinese job sites seeking data analysts or engineers for its Beijing and Shanghai-based offices capable of “in-depth mining” of “massive user behaviour data” from the app’s U.S. users.

A Republican aide to the US House of Representatives Foreign Affairs Committee told Reuters the use of Chinese-based engineers by Newsbreak raised possible concerns that American user data can be accessed in China. The aide declined to be identified because they were not authorised to speak to the media.

In a recent high-profile case, US officials warned that TikTok, whose parent company is the Chinese firm ByteDance, could be compelled by the Chinese government to use its algorithm to control what kind of news is viewed by Americans and hand over their data.

TikTok, the most downloaded short video app globally, with 170 million U.S. users, now faces a forced sale or a US ban.

In response to Reuters questions, TikTok said it was planning to offer third parties more access to examine its code and verify the app functions as intended.

Zheng told Reuters that NewsBreak complies with US data and privacy laws and is maintained on US-based Amazon (AWS) servers. “Staff in China only access anonymous data stored on AWS servers in the US,” he said. Amazon declined to comment.

NewsBreak also said that as a US-based business it was not subjected to Chinese data laws.

Pearlstine, the former NewsBreak consultant, said NewsBreak’s ability to demonstrate it is a US company was critical.

“The long term health of NewsBreak was dependent on its being perceived as a California company and that the more the leadership was in Mountain View, the better it would be for the company,” he said. — Reuters

Working with McDonald’s: More than a job, it’s a journey

Behind the golden arches and heartwarming aesthetics of McDonald’s branches are their dedicated employees who work tirelessly to ensure that every customer receives their favorite meal with exceptional service. From the smiling faces who take your order to the skilled kitchen staff who prepare your food, the McDonald’s crew remain true to their commitment to transforming a simple meal into a happy meal.

Before stepping through the doors of a branch and embarking on their professional careers, the journey of a McDonald’s employee, whether service crew or manager, begins with world-class training programs designed to equip them with the skills and knowledge needed to excel in their roles. These programs serve as launchpads for service crew members before they work in the counter or the kitchen, as well as for aspiring managers before they take the lead at their respective branches.

After completing their training, McDonald’s employees are ready to step into their roles with excellence and a day-to-day drive to deliver the best results. Armed with knowledge from its training programs, its customer-driven employees strive to exceed the needs and requirements of customers dining in and taking out.

With compassion and integrity instilled in them, McDonald’s employees demonstrate their concern and care in their interactions with customers, colleagues, and community members alike while upholding the highest standards of honesty, responsibility, and professionalism.

These world-class employees are supported by an inclusive culture that makes employees feel valued, respected, and empowered to bring their authentic selves to work and bring out their best service. Through recognition programs and engaging activities, McDonald’s also fosters a positive employee experience that keeps its workforce motivated and connected.

Breaking fast-food work stereotypes, McDonald’s Philippines employees are given different opportunities to advance their careers and different options for growth. Precy M. Tongol, a former manager trainee who is now a restaurant general manager at McDonald’s, went through the company’s development programs and is a living testament to the career pathways available in fast-food service.

“I have built my identity as a career woman here at McDonald’s Philippines.” Mrs. Tongol proudly shared in an article shared by McDonald’s Philippines last International Women’s Month. “Running a restaurant of a million-dollar business is not that easy, but McDonald’s has equipped me with enough knowledge and skills to perform at my best. I am empowered to decide what is best for my restaurant.”

McDonald’s Philippines also takes pride in being an equal-opportunity employer. The company has provided career opportunities to working students, part-timers, and, recently, even senior citizens (SC) and persons with disabilities (PWD) regardless of background, religion, gender, or sexual orientation.

The quick service restaurant giant (QSR) has also given access to training development and advancement opportunities to more members of the community with programs like the Workforce Immersion Program (WIP) and the Special Program for Employment of Students (SPES). Through these projects, McDonald’s Philippines has employed over 16,000 Filipino youths and close to 100 SCs and PWDs nationwide.

One of these senior citizens is 63-year-old Larina Castro who is working as a crew member at McDonald’s Bluebay in Pasay City. A retired seamstress, Ms. Castro joined McDonald’s as her son lost his job and her husband didn’t have work.

“Enjoy po ako kasi lahat ng tao dito mabait sa akin. Masarap magtrabaho na welcome ka ng lahat — simula sa mga managers hanggang sa mga crew. Lahat sila mababait (I enjoy working here because everybody is nice. It’s great to be working in a place where everyone is welcoming — from the managers to the crew. They are all very nice),” Ms. Castro was quoted as saying.

As a result of this harmonious workplace culture, McDonald’s Philippines has been recognized as one of the Philippines’ best employers in the inaugural list of The Philippines’ Best Employers for 2023 and 2024 via international market research firm Statista.

One of the country’s biggest employers with more than 60,000 employees in over 740 stores nationwide, the QSR was awarded by Statsita a commendable rating of 8.31 out of 10, based on respondents’ likelihood to recommend the company to friends or family, with 0 indicating the least likelihood and 10 signifying the direct recommendation.

Recognized as a top employer, the company continues to set the standard for excellence in the fast-food industry. Through rigorous training, recognition programs, and opportunities for advancement, McDonald’s empowers its workforce to thrive and excel. With their dedication, employees deliver exceptional service, leaving a positive impact on customers, colleagues, and communities.

At McDonald’s Philippines, it’s more than just taking orders and assembling them. It’s a journey made possible by a supportive and fulfilling environment for its employees.

 


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Costco’s Japan wages provide pathway to firing up nation’s low pay, economy

EMRAN YOUSOF-UNSPLASH

 – When Costco Wholesale opened its warehouse in a rural Japanese town not far from Tokyo last year offering hundreds of jobs at eye-popping pay, a nearby noodle shop chain took a drastic step: it hiked hourly wages by a third.

It was an almost unthinkable decision for Yamada-udon, which sells 390-yen ($2.48) bowls of noodles and for which the slightest rise in cost requires acrobatic scrambling to stay in business.

“For us, even a one- or two-yen rise in raw materials costs is tough, so to increase hourly pay by even 10 yen is extremely challenging as we need to generate far more sales,” said marketing director Takehiro Ehashi.

After a round of internal discussions, Yamada-udon decided to renovate the store, in Meiwa, Gunma prefecture, offering 1,300 yen an hour for the first three months. That was shy of Costco’s starting hourly wage of 1,500 yen but enough to entice job-seekers in the notoriously tight labor market. After three months, wages would be at 1,050 yen, versus 970 yen pre-Costco.

Pressure from the big-box U.S. retailer to offer competitive salaries is tough for businesses like Yamada-udon, but could be the kind of jolt that Japan’s local economies need to create a virtuous cycle of higher wages, solid consumption and stable demand-driven inflation, some say.

A meaningful and sustainable rise in wages is a key goal for Prime Minister Fumio Kishida, while the Bank of Japan says it’s a crucial factor for normalizing monetary policy. Real wages – stripping out the effect of inflation – have fallen for 25 straight months despite Japanese firms agreeing to the biggest hike in wages in three decades in both 2023 and 2024.

That has dragged down consumption and the broader economy, which depends heavily upon it, making it harder for the BOJ to execute a smooth exit from easy policy.

Japan lags far behind other big economies with an index for its real average annual wages showing almost no growth between 1995 and 2021, according to IMF data. That compares with growth rates of 50% in the U.S. and nearly 30% in France during the same period.

Two years ago, Costco set its minimum hourly pay at 1,500 yen across all of its stores in Japan in a bid to retain workers. That’s high even for Tokyo, where the legal minimum wage is the country’s highest, at 1,113 yen, and 60% more than the minimum in Gunma prefecture. Costco received more than 2,000 applications for about 300 spots for its Meiwa store which opened in April 2023 about an hour north of Tokyo.

“If we offer higher wages, our staff can earn and spend more,” said Costco Gunma Meiwa warehouse manager Kaoru Yamamoto. “By doing so, we feel we can make a big contribution by creating a favorable cycle in the local economy.”

Costco plans to accelerate its new-store openings in Japan, nearly doubling the number of outlets to more than 60 by 2030, many in remote regions such as Shiga and Okinawa prefectures.

Swedish furniture maker IKEA, which has set a nation-wide minimum hourly wage of 1,300 yen in Japan, also opened a store in Gunma this year.

“Such moves by big foreign firms to offer higher wages can become a trigger for wage hikes in the local community, which can spread into the broader economy,” said Yusuke Aoki, an economist at Indeed Hiring Lab.

 

STEPPING RIGHT UP

Just over a year since Costco opened in his town, Meiwa mayor Motosuke Tomizuka says the positive signs are already evident.

The hourly wage in Meiwa has grown by as much as 300 yen, he said, and the rice-growing town of about 11,000 residents sees about as many daily visitors thanks to Costco’s popularity.

“When the local economy enters the stage of raising wages, what do business owners do? They try their hardest to make money,” Tomizuka said. “In this way, the economy finally expands and spurs revitalization.”

Costco worker Ryu Kawane says the company’s generous pay has allowed him to buy higher-quality ingredients to make his favorite dish of roast beef, while colleague Nanami Shimamura said he’s now able to save up to study abroad.

Noodle chain Yamada-udon, for its part, said it has Costco to thank for the influx of shoppers into town, contributing to a 40-50% jump in its revenues.

To be sure, not everyone was thrilled about Costco’s arrival, mayor Tomizuka said, recalling how some business owners chided him for making it even more difficult to hire.

“The big chains may have the strength to raise wages, but small and medium-sized businesses are still in a difficult position,” said Hisanori Amada, an economist at the Gunma Labor Bureau.

“Some can’t even afford to offer jobs at the moment.” – Reuters

Democratic contraception access bill fails in US Senate

STOCK PHOTO | Image by Pexels from Pixabay

 – A bill to safeguard access to contraceptives failed to advance in a US Senate vote on Wednesday, after congressional Democrats forced the vote in a bid to focus public attention on reproductive rights ahead of the November election.

The Right to Contraception Act, which would protect birth control access nationwide, got 51 votes in support and 39 against, but fell short of the chamber’s 60-vote threshold for advancing to a full debate.

The fight over reproductive rights is a flashpoint in U.S. politics, especially since the Supreme Court’s 2022 decision to overturn Roe v. Wade, the decision that had recognized a national right to abortion access.

Republican presidential candidate Donald Trump last month came under fire after comments that political rivals said suggested he would consider banning birth control, leading him to respond publicly that he would not support such a move.

Top Senate Democrat Chuck Schumer on Wednesday pointed to several states including Nevada and Virginia where Republican governors have vetoed efforts to protect legal access to contraception, saying that showed a need for federal legislation.

“We are kidding ourselves if we think the hard right will stop at overturning Roe,” he said.

US House of Representatives Democrats said they would attempt a legislative maneuver to force a vote on the same bill, though they faced slim chance of success in the Republican-controlled chamber.

“Republicans have a choice to make: They can put aside their MAGA ideology and join us (to) get this bill passed or they can triple down on their anti-freedom extremism in full view of the American people,” No. 2 House Democrat Katherine Clark said on Tuesday.

Republican Representative Marc Molinaro, who won his district in 2022 by just 1.6%, said on Wednesday that he would cosponsor the legislation, the first Republican to do so.

Some Senate Republicans criticized the push.

“It’s an election year in which a Democratic incumbent president is running behind, so a decision has been made to raise abortion to a high profile,” said Republican Senator Bill Cassidy, referring to President Joe Biden. “You can’t normalize a procedure where the intent is to end a life.

In a May Reuters/Ipsos survey of 3,934 US residents 18 and older, 37% said Mr. Biden has a better approach to abortion compared to 27% who said the same about Mr. Trump ahead of a Nov. 5 election expected to be close.

Mr. Schumer said Democrats would also vote on a bill next week to protect in-vitro fertilization, which Senate Republicans previously voted against after an Alabama court made the fertility treatment used by millions of Americans to conceive effectively illegal in the state. – Reuters

What does Biden’s new asylum ban at the US-Mexico border do?

U.S. President Joe Biden holds a campaign rally ahead of the state’s Democratic presidential primary, in Las Vegas, Nevada, U.S. Feb. 4, 2024. — REUTERS

 – US President Joe Biden’s administration will block migrants from claiming asylum at the US-Mexico border until attempted crossings fall under new actions rolled out on Tuesday.

The asylum ban went into effect at 12:01 a.m. ET (0401 GMT) on Wednesday.

 

WHAT DOES THE BIDEN ASYLUM BAN DO?

The new asylum ban allows authorities to quickly deport or send back to Mexico migrants who cross the US-Mexico border illegally without the chance to claim asylum. The ban takes effect when migrant arrests surpass 2,500 per day for a week.

Border arrests averaged 4,300 per day in April, the most recent statistics publicly available. US officials said on Tuesday that arrests remained high enough for restrictions to go into effect immediately.

The ban will stay in place until arrests drop below an average of 1,500 per day for one weekThere would then be a two-week waiting period where the restrictions would remain if migrant arrests again rose to an average of 2,500 per day over a week.

The last month where migrant arrests fell below a daily average of 1,500 was in the early months of the COVID-19 pandemic in July 2020 when global travel was at historic lows.

 

WILL THESE MEASURES ‘CLOSE’ THE BORDER?

No. The restrictions apply to migrants crossing between ports of entry, but access will not be blocked for people who seek an appointment to approach a legal port of entry through a government-run cell phone app. Others who have applied from abroad to enter through various parole programs started by the Biden administration or temporary work visa holders will be allowed in.

The ban will also not apply to unaccompanied minors or people who face serious medical or safety threats and victims of trafficking, administration officials said.

Legal trade and travel across the US-Mexico border will not be affected.

 

HOW WILL THIS WORK IN PRACTICE?

Key operational questions about how the asylum ban will be implemented remained unclear, including how the administration would quickly deport migrants from far-away and uncooperative countries and how many non-Mexican migrants Mexico would accept under the new enforcement regime.

The minimum time asylum-seekers have to find a lawyer was reduced to four hours from 24 hours, a Biden administration official said on a call with reporters on Wednesday. The four-hour period must be between 7 a.m. and 7 p.m., the official said.

The aim is to screen almost all migrants faster – possibly in under a week, a US Department of Homeland Security (DHS) official told Reuters on condition of anonymity to discuss ongoing government operations. More migrant families could end up being held in tent facilities near the border while their deportation cases are being evaluated, the official said, calling the facilities “safe” but “extremely stressful” for families.

DHS did not immediately respond to a request for comment.

Local officials and shelter directors in Tijuana, Mexico – across from San Diego, California – said migrants could get stuck in Mexico where capacity to house them safely is limited.

 

WILL THE BAN BE CHALLENGED IN COURT?

Almost certainly. The American Civil Liberties Union said it intends to sue. The ACLU and other civil and immigrant rights groups challenged similar asylum bans during issued by former President Donald Trump.

 

WHY IS BIDEN DOING THIS NOW?

Mr. Biden has pushed unsuccessfully for months to pass a Senate bill that would toughen border security, including with a provision that resembles his latest moves by executive action. The bill was crafted by a bipartisan group of senators but Republicans rejected it after Trump came out in opposition.

Immigration is a key issue in the upcoming US presidential elections in November when Mr. Biden will be facing Mr. Trump again in a rematch of the 2020 race. When it comes to immigration policy, registered voters prefer Mr. Trump over Mr. Biden by a 17 percentage point margin, according to a Reuters/Ipsos poll conducted in mid-May.

Border crossings have dropped in recent months, which the Biden administration credits in part to increased enforcement by Mexico. Still, Mr. Biden in his asylum ban proclamation said factors driving record migration remain and elevated levels of migration “pose significant operational challenges.”

 

HOW ARE REPUBLICANS AND DEMOCRATS REACTING?

Republicans broadly oppose Mr. Biden’s immigration policies and many spoke out against the last asylum restrictions, saying they were politically motivated and insufficient.

In advance of the announcement, Mr. Trump’s campaign issued a statement criticizing Mr. Biden for high levels of illegal immigration and said the move to exempt unaccompanied minors would encourage child trafficking.

Mr. Trump posted on Truth Social that the move was “all for show” because the two candidates are scheduled to debate on June 27 and ripped Mr. Biden programs that allow migrants to enter legally and obtain work permits.

Democrats were split on the asylum ban with more liberal lawmakers criticizing Mr. Biden and moderates praising him.

Alex Padilla, a Democratic US Senator from California, said Mr. Biden “undermined American values” and that the order would lead to “people with legitimate asylum claims being prevented from seeking safety and returned to harm.”

On the flip side, US Representative Ruben Gallego, a Democrat running for a US Senate seat in Arizona, called the move “a step in the right direction.”

 

WHAT’S NEXT?

US officials have not provided details on how they would increase deportations or how they would deal with families, who are currently not detained after being arrested at the border.

US Customs and Border Protection on Wednesday had over 9,000 people in custody who entered before the new policy went into effect that need to be processed under the previous standards, a Biden administration official said on Wednesday’s call with reporters.

The US deported and returned some migrants under the new rules on Wednesday, the officials said, declining to give exact figures. – Reuters

ECB to begin cutting rates even as inflation fight continues

REUTERS

 – The European Central Bank was all but certain to cut interest rates from record highs on Thursday and was likely to acknowledge it had made progress in its battle against high inflation, while also stressing the fight was not yet over.

ECB policymakers have clearly telegraphed their intention to lower borrowing costs after seeing inflation in the 20 countries that share the euro fall from more than 10% in late 2022 to just above their 2% target in recent months.

The broad-based decline was seen as more than enough for the ECB to begin undoing the steepest streak of interest rate hikes in its history, which were a response to spiraling prices in the wake of Russia’s invasion of Ukraine.

Now, the ECB will join the central banks of CanadaSweden and Switzerland in cutting rates and moving well ahead of the influential U.S. Federal Reserve.

But what had looked like the start of a major easing cycle only a few weeks ago now appeared more uncertain amid signs that inflation may prove stickier than expected in the euro area, as has been the case in the United States.

This meant that ECB President Christine Lagarde and her colleagues were unlikely to commit to a further rate reduction at their July meeting or beyond just yet.

Instead, they were expected to stress any further move would depend on incoming data and that borrowing costs needed to remain high enough to keep a lid on inflation.

“The cut will set the new direction for policy but with economic momentum outperforming expectations and domestic inflation proving sticky in 2024, the ECB can afford to take things slowly and let the data set the parameters of the easing cycle,” Deutsche Bank economists wrote in a note to clients.

All 82 economists polled by Reuters expected the ECB to trim its deposit rate to 3.75% on Thursday from a record 4.0%, in what would be its first cut since 2019.

But not all think it is a good idea.

Gabriele Foà, a portfolio manager at Algebris Investments, said the cut “may soon be viewed as a policy mistake” and JPMorgan economist Greg Fuzesi said it was “oddly rushed”.

“The cost of waiting until September appears low while the benefit of getting more clarity on the inflation outlook appears high,” Fuzesi added. “For some reason, the ECB Governing Council, however, seems already to have decided many weeks ago to deliver a June cut.”

 

NO DECLARATION OF VICTORY

ECB chief economist Philip Lane set the tone last week, saying that a rate cut would be no “declaration of victory” and the pace of further reductions would depend on progress on domestic inflation and demand.

Most economists still expected two further rate cuts by the end of the year and money markets priced in between one and two more moves, possibly in September and December.

But some stronger-than-expected data over the last few weeks fueled fears of a more difficult “last mile” on the way to 2% inflation than the ECB has been predicting — a concern often expressed by influential board member Isabel Schnabel.

Euro zone inflation rose more than predicted in May, with price growth in the services sector, which some policymakers singled out as especially relevant because they reflect domestic demand, rebounding to 4.1% from 3.7%, according to preliminary estimates.

This was likely to mirror larger-than-expected increases in wages in the first quarter of the year, which boosted consumers’ battered disposable income after years of below-inflation pay hikes.

“We’re still confident about services inflation coming down but there’s definitely a last-mile dynamic at play here,” Paul Hollingsworth, an economist at BNP-Paribas, said.

Economic activity surveys have also pointed to a stronger-than-expected rebound by the economy after more than a year of stagnation, which is likely to force the ECB to increase its GDP forecast for this year when it publishes its new projections on Thursday.

These were still expected to point to inflation returning to the ECB’s 2% goal next year, keeping the central bank on course for more easing barring new inflation surprises.

“If anything, the five quarters of stagnation in the euro zone economy from autumn 2022 to the end of 2023 suggest that the ECB may have overreacted with its rate hikes,” Holger Schmieding, an economist at Berenberg, said. “Seen from this angle, somewhat lower rates make sense.” – Reuters

Nvidia overtakes Apple as No. 2 most valuable company

FILE PHOTO: The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith/File Photo

Nvidia’s rallied to record highs on Wednesday, with the artificial intelligence chipmaker’s valuation breaching the $3 trillion mark and overtaking Apple to become the world’s second most valuable company.

Nvidia is preparing to split its stock ten-for-one, effective on June 7, a move that could increase its appeal to individual investors.

The surge in Nvidia’s market value above Apple’s marks a shift in Silicon Valley, which the company co-founded by Steve Jobs has dominated since it launched the iPhone in 2007.

Nvidia’s stock rose 5.2% to end the day at $1,224.40, valuing the company at $3.012 trillion. Apple’s market capitalization was last at $3.003 trillion after its stock climbed 0.8%.

Microsoft, based in Redmond, Washington, remained the world’s most valuable company at $3.15 trillion after its shares climbed 1.9%.

“Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI,” said Jake Dollarhide, chief executive officer at Longbow Asset Management.

“It may be a foregone conclusion that Nvidia will overtake Microsoft as well. There’s a lot of retail money that’s piling in on what they see as a straight shot up.”

Nvidia’s stock has surged 147% so far in 2024, with demand for its top-of-the-line processors far outstripping supply as Microsoft, Meta Platforms and Google-owner Alphabet race to build out their AI computing capabilities and dominate the emerging technology.

It has rallied nearly 30% just since May 22, when Nvidia issued its latest stellar revenue forecast.

Nvidia added nearly $150 million in market capitalization on Wednesday, more than the entire value of AT&T.

Optimism about AI lifted chip stocks broadly on Wednesday, with the PHLX chip index .SOX surging 4.5%. Super Micro Computer SMCI.O, which sells AI optimized servers built with Nvidia chips, climbed 4%.

Nvidia CEO Jensen Huang this week was the subject of wall-to-wall coverage on Taiwanese television and was mobbed by attendees when he visited the Computex tech trade fair in Taipei, where he was born before moving to the United States.

While Nvidia rides a wave of AI enthusiasm on Wall Street, Apple is struggling with weak demand for iPhones and tough competition in China, the world’s biggest smartphone market.

Some investors also view Apple as lagging other technology heavyweights as they rush to build AI features into their products and services.

Analysts’ projections for Nvidia’s future earnings have outpaced its stellar stock gains. Nvidia is trading at 39 times expected earnings, making it less expensive on that basis than a year ago, when it traded at over 70 times expected earnings, LSEG data showed. – Reuters

Road-worthy vehicles can save lives – VICOAP

STOCK PHOTO | Image by Arek Socha from Pixabay

Maintaining a road-worthy vehicle helps provide safety for the driver and passengers, Board Secretary of Vehicle Inspection Center Operators Association of the Philippines (VICOAP) John Alison “Tonton” Uy said in an interview last Tuesday. 

“Road accidents and road fatalities is actually what I like to call a silent killer. Statistically, it’s about 12,000 deaths every year in our country alone, and that doesn’t even include injuries or…damage to property”, Mr. Uy elaborated. 

Road crashes ranked as the leading cause of death among Filipinos 15-29 years old, with 38 daily casualties, according to the United Nations Children’s Fund (UNICEF), citing studies from the University of the Philippines – National Center for Transportation Studies (NCTS).  

Although there was a decrease in 2020 due to reduced mobility during the COVID-19 pandemic, the casualty count of 7,938 in 2011 rose to 11,096 in 2021, a 39% increase, the Department of Transportation explained while referencing the Philippine Statistics Authority (PSA). 

DOTr Secretary Jaime Bautista campaigned at the Land Transportation Office (LTO) Regional Directors’ Conference last Thursday for the implementation of road safety measures and regulations to lessen road accidents.   

“Kailangan mabawasan ‘yung road crashes [We need to lessen road crashes],” he said.  

At the launch of the Philippine Road Safety Action Plan 2023-2028 last May 31, 2023, the World Health Organization (WHO) Representative to the Philippines Rui Paulo de Jesus, shared that if everyone participated in road safety measures, injuries and deaths could be avoided.  

“Road traffic injuries are a major yet often neglected public health issue. Deaths and injuries from road crashes are preventable, and all sectors have a role to play in promoting road safety,” Mr. De Jesus said. 

“Road traffic injuries are a major yet often neglected public health issue. Deaths and injuries from road crashes are preventable, and all sectors have a role to play in promoting road safety”, the World Health Organization (WHO) Representative to the Philippines Rui Paulo de Jesus said in the launch of the Philippine Road Safety Action Plan 2023-2028 last May 31, 2023. 

The Philippine Road Safety Action Plan 2023-2028 aims to create a safer road environment and reduce deaths on the road by 35% in 2028.

“After the official release of the Philippine Road Safety Action Plan, it is high time to put it in action and ensure a significant reduction of deaths on the road,” Mr. Bautista mentioned at the launch. 

“After the official release of the Philippine Road Safety Action Plan, it is high time to put it in action and ensure a significant reduction of deaths on the road,” DOTr Secretary Jaime Bautista mentioned at the launch. 

“The DOTr takes road safety seriously. Its approach is anchored on prevention. In fact, majority of transport projects are aligned towards promoting road safety”, he added. 

The Philippine Road Safety Action Plan 2023-2028 consists of five pillars targeted to address and counter the ongoing problems on roads: 

  • Road safety management 
  • Safer road 
  • Safer vehicles 
  • Safer road users 
  • Post-crash response 

– Almira Louise S. Martinez

Jollibee Foods Corporation to conduct Annual Stockholders’ Meeting virtually on June 28 at 2 p.m.

Deadline to register to vote in absentia is on June 18, 5 p.m., while deadline to vote in absentia is on June 21, 12 p.m.

 

NOTICE OF ANNUAL STOCKHOLDERS’ MEETING

NOTICE IS HEREBY GIVEN that the annual meeting of the stockholders of Jollibee Foods Corporation (the “Corporation”) shall be held on Friday, June 28, 2024 at 2:00 in the afternoon.

The agenda for the meeting shall be as follows: 

  1. Call to Order;
  2. Certification by the Corporate Secretary on Notice and Quorum;
  3. Reading and approval of the minutes of the last Annual Stockholders’ Meeting;
  4. Management’s Report;
  5. Approval of the 2023 Audited Financial Statements and Annual Report;
  6. Ratification of Actions by the Board of Directors and Officers of the Corporation;
  7. Approval of Amendments to the Secondary Purposes of the Corporation in Article Two of the Articles of Incorporation, to remove land from among the real properties that may be acquired, mortgaged or encumbered by the Corporation;
  8. Election of Directors;
  9. Appointment of External Auditors;
  10. Other matters; and
  11. Adjournment.

Only stockholders of record as of May 28, 2024 are entitled to notice of, and to vote at, this meeting.

In the interest of public health and safety, there will be no physical meeting. The Corporation shall conduct the meeting virtually and the stockholders may attend and participate via remote communication and by voting in absentia or by appointing the Chairman of the meeting as their proxy.

The procedures for participating in the meeting through remote communication and for voting in absentia are set forth in the Information Statement and shall also be published in the Corporation’s website at https://asm.jollibeegroup.com/. The deadline for registration to vote in absentia shall be until 12:00 P.M. of June 21, 2024.

Stockholders who will join by proxy shall download and complete the proxy form found in the Corporation’s website at http://www.jollibeegroup.com and submit the duly accomplished proxy forms by email to corporatesecretary@jollibee.com.ph no later than 5:00 p.m. of June 18, 2024. Proxies received thereafter shall not be recognized for the meeting.  We are not soliciting your proxy.

 

Pasig City, June 5, 2024.

 

WILLIAM TAN UNTIONG

Corporate Secretary

 


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Inflation picks up to 6-month high

Inflation rose for a fourth straight month in May, the statistics agency said on Wednesday. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

INFLATION ACCELERATED to a six-month high in May, driven by the faster rise in utility and transport costs, the Philippine Statistics Authority (PSA) said on Wednesday.

The consumer price index (CPI) picked up to 3.9% year on year in May from 3.8% in April but slowed from 6.1% in the same month last year.

It was the fastest inflation since 4.1% in November and matched the 3.9% inflation in December.

Inflation rates in the Philippines

May inflation also fell within the Bangko Sentral ng Pilipinas’ (BSP) 3.7-4.5% forecast for the month. However, it was slightly below the 4% median estimate in a BusinessWorld poll of 16 analysts last week.

May also marked the fourth straight month of faster annual inflation, and the sixth straight month that inflation settled within the BSP’s 2-4% target band.

Month on month, inflation inched up by 0.1%. Stripping out seasonality factors, month-on-month inflation picked up by 0.3%.

Core inflation, which excludes volatile prices of food and fuel, slowed to 3.1% in May from 3.2% in April and 7.7% in the same month a year ago.

From January to May, headline inflation averaged 3.5%, matching the BSP’s full-year forecast.

“The inflation outturn is consistent with the BSP expectations that inflation could temporarily accelerate above the target range over the near term due to adverse weather conditions on domestic agricultural output and positive base effects,” the central bank said in a statement.

National Statistician Claire Dennis S. Mapa said the inflation uptick was driven by the faster increase in the housing, water, electricity, gas and other fuels index. It rose to 0.9% in May from 0.4% in April.

“One of the main contributors to the increase in housing, water, electricity, gas, and other fuels was the slower pace of decrease in electricity prices… (and) the faster rise in prices of liquified petroleum gas (LPG), which had 9.4% inflation,” he said in mixed English and Filipino.

He also noted that the yellow and red alerts placed on the Luzon and Visayas grids contributed to higher electricity prices.

Mr. Mapa also noted the faster annual growth in transport index at 3.5% in May from 2.6% in the previous month and -0.5% in May 2023. This was driven by higher gasoline and diesel prices, as well as rising fares for passenger transport by sea.

Meanwhile, the heavily weighted food and non-alcoholic beverages index was the main contributor to overall headline inflation, accounting for 56.6% or 2.2 percentage points (ppts).

The food index rose to 5.8% in May, slowing from 6% a month ago and 7.4% in May 2023. The cereals and cereal products index, which includes rice, eased to 16.6% from 16.9% in April.

Rice inflation eased to 23% from 23.9% a month earlier. May marked the second straight month of slower rice inflation.

PSA data showed that the average price of a kilo of well-milled rice declined to P56.06 in May from P56.42 in April while special rice dropped to P64.41 from P64.68 per kilo.

Mr. Mapa noted that rice prices continue to see “incremental decreases” as global rice prices are also going down.

He also cited faster inflation in the ready-made and other food products, particularly ginger. The average price of a kilo of ginger rose to P148.72 in May from P127.66 in April.

Meanwhile, the inflation rate for the bottom 30% of income households settled at 5.3% in May, the same as a month ago but slower than 6.7% a year earlier.

In the first five months, the inflation rate averaged 4.6% for the bottom 30%.

In the National Capital Region (NCR), inflation quickened to 3.1% from 2.8% in April. Inflation in areas outside NCR averaged 4.1%, unchanged from the previous month.

RISKS TO INFLATION
Meanwhile, the BSP said that risks to the inflation outlook continue to tilt toward the upside.

“Possible further price pressures are linked mainly to higher transport charges, elevated food prices, higher electricity rates, and increase in global oil prices,” it said.

However, the central bank said it still expects average inflation to return to the target range for both 2024 and 2025.

PSA’s Mr. Mapa said that inflation could ease further after the National Economic and Development Authority (NEDA) Board recently approved a medium-term plan to reduce tariffs on key agricultural and industrial products. Tariffs for rice imports will be slashed to 15% from 35% previously until 2028.

“Our inflation of rice has a very substantial contribution to overall inflation. It’s even bigger for the bottom 30% income households… It would reduce the overall inflation, given the contribution of rice to the overall inflation, all things being the same,” Mr. Mapa said.

NEDA Secretary Arsenio M. Balisacan said in a statement on Wednesday that the tariff reduction will “help manage food inflation, promote policy stability and investment planning, and enhance food security.”

How much did each commodity group contribute to May inflation?

POLICY IMPLICATIONS
The central bank said it will consider the latest inflation data in its next policy review on June 27.

“The BSP also continues to support the National Government’s nonmonetary measures to address supply-side pressures on prices and sustain the disinflation process,” it added.

Chinabank Research said in an e-mail note that recent nonmonetary measures could result in a lower inflation path and ensure that full-year inflation falls within the BSP’s target.

“While unfavorable base effects will continue to help drive up inflation until July and upside risks persist, recent nonmonetary interventions such as tariff cuts on key commodities and the exemption of agri-trucks from toll fee hikes starting this month brought positive developments to the inflation outlook,” it said.

The BSP earlier said that inflation could overshoot the 2-4% target band from May to July amid base effects.

“The monthly year-on-year inflation is expected to peak in July and anticipated to begin its downward trend in August,” Metrobank Research and Market Strategy Department said in a report.

Pantheon Macroeconomics in an e-mail note said that it expects inflation to average 3.3% this year, below the BSP’s full-year target.

Chinabank Research said that latest inflation data may also prompt the BSP to begin policy easing earlier than expected.

“(This) could support possible local policy rate cuts as early as the latter part of 2024 especially if the Fed starts cutting rates,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Pantheon said it expects the BSP to cut by a total of 75 basis points (bps) this year, beginning in August.

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

BSP Governor Eli M. Remolona, Jr. earlier said that the Monetary Board can begin policy easing as early as August.

Metrobank Research said it expects the BSP to begin its easing cycle in the fourth quarter should the US Federal Reserve start cutting in September.

Mr. Remolona earlier said that the BSP does not need to wait for the Fed and can cut ahead of the US central bank.