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What if Russia wins in Ukraine? Ask Georgia

FREEPIK

THERE’s been a lot of debate about what the future holds for Europe and its neighborhood if Russia’s invasion of Ukraine succeeds. We already know at least part of the answer, because it’s happening in Georgia.

This is the small Caucasus country where President Vladimir Putin first made clear he was willing to use force to reimpose a Russian sphere of control and influence. How that war began remains controversial, and I’ll get to the question later. What happened since shouldn’t have been.

On Monday evening, Bidzina Ivanishvili, a Georgian businessman who made his billions in Russia, gave a speech in which he accused a “global party of war” of trying to block his nation from asserting its freedom and sovereignty.

This is the same global party of war that used civil society non-governmental organizations, or NGOs, to foment Georgia’s 2003 Rose Revolution, according to Ivanishvili, who now runs his native country from an unelected position as chairman of the ruling Georgian Dream party. The uprising brought to power what he described as a puppet government that steeped the nation in crime and repression, and then forced Georgia into war with Russia in 2008. Later, this ill-defined global conspiracy forced Ukraine into wars with Moscow in 2014 and 2022.

Now, Ivanishvili said in his speech, those same people were trying to unseat his government and impose foreign values such as LGBTQ+ rights, because he refuses to open a second front against Russia. The NGOs now need to be dealt with, according to Ivanishvili, while members of the former government of President Mikheil Saakashvili — already in jail on what his lawyers say were trumped up charges — should be prosecuted for unspecified crimes.

This was, as the lifelong scholar of the Caucasus region Thomas de Waal put it on Tuesday, “an extremely dangerous speech that will chill anyone who cares about Georgia to the bone.”

It also amounted to a public declaration by Ivanishvili that he has sided with Moscow in its confrontation with the West, using the same paranoiac, unhinged language and gaslighting that Russian leaders spout daily. “It is completely clear that Bidzina Ivanishvili and ‘Georgian Dream’ have changed the foreign policy course from the West to Russia,” a group of 67 current and former Georgian diplomats wrote in a joint letter responding to the speech.

Twice now, Ivanishvili has persuaded the government to propose a law on foreign agents that’s very similar to the one Russia uses to suppress any nonprofit that receives grants from outside the country and doesn’t toe the Kremlin line. Such laws, aimed at suppressing civil society, are the gateway drugs of would-be autocrats, as they look to remove all institutions that could pose a risk to their hold on power.

Georgian Dream dominates the Parliament, but backed down from the attempt in March last year, after the bill triggered mass street protests. Russia, not coincidentally, was on the back foot in Ukraine at the time, recovering from two major battlefield defeats and looking stretched as even a regional superpower.

Now the government in Tbilisi is trying again, triggering mass protests, as well as formal criticism from Georgia’s Western allies. The European Union (EU) has said the law would be incompatible with membership, which opinion polls show some 80% of Georgians want. A bipartisan group of US senators expressed their disappointment in a letter, warning that the shift in policy could force the US to impose sanctions.

So what actually happened in Georgia? Saakashvili, a US-educated lawyer, had indeed worked for an NGO and led the Rose Revolution to power in 2003. The country was at the time a failed state, much of it controlled by criminal gangs and with three enclaves carved away by pro-Russia separatists; Ivanishvili, recently returned from Russia, gave no sign of opposing the uprising and even bankrolled some of Saakashvili’s reforms. The young new leader, for all his failings, quickly retrieved one lost territory, radically reduced corruption, collected taxes and left behind a functioning, investible state.

It wasn’t until 2008 that the two men became enemies. The North Atlantic Treaty Organization (NATO) had just said “no” to membership plans for Georgia and Ukraine, but offered a long-term promise that trespassed on what Putin saw as his backyard.  The Russian military began to prepare fuel depots and rail infrastructure in Abkhazia and South Ossetia, its two remaining Georgian enclaves. When it started feeding unmarked tanks and soldiers into South Ossetia, in August, Saakashvili attempted a disastrous preemptive strike.

Saakashvili became the first Georgian leader to step down and allow a peaceful transfer of power when he lost elections in 2012. And for a while, it seemed Ivanishvili and Georgian Dream might offer a less impetuous path to the EU and NATO integration that the vast majority of the country wanted, as well as more protections for the rule of law.

But the country has instead been slipping on indices for corruption and freedom. Opponents of the government have been beaten or shot at. And this time, when Ivanishvili pushed for the repressive NGO law, Russia was on the offensive in Ukraine, taking territory as Kyiv ran out of ammunition for the front. Rather than back down again in the face of widespread demonstrations, Ivanishvili has now stepped out of the shadows to claim the foreign agent law as his own and the West as his enemy.

In doing so, Georgia’s strongman is flying in the face of what most of the population want, while obscuring the fact with appeals to conservative Georgians over gay rights. He’ll also doubtless enjoy backing from Moscow, which keeps troops in Abkhazia as well as South Ossetia, about a two-hour tank drive from the capital. The result is I have no idea how this will play out, but the impact of Putin’s military success in Ukraine is already clear; it’s turning the dreams of Russia’s neighboring populations into nightmares.

BLOOMBERG OPINION

Meralco proceeds with feasibility study on micro modular reactor

PHILIPPINE STAR/MICHAEL VARCAS

MANILA Electric Co. (Meralco) said it has started conducting a full feasibility study with US-based company Ultra Safe Nuclear Corp. (USNC) for the installation of micro modular reactors (MMR) in the Philippines.

“On the formal feasibility study, we will need to deep dive more on the financial safety and other very important parameters as well as on the site-specific study like where do we install these micro modular reactors,” Meralco Executive Vice-President and Chief Operating Officer Ronnie L. Aperocho said during a recent briefing.

He noted that the company had decided to proceed with the formal feasibility study following the presentation of the pre-feasibility results.

The full-scale feasibility study would take approximately six months, and they are already making progress, he added.

Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said that the pre-feasibility study identified five areas that are subject to a geological study.

The study is to ensure that the locations are safe places to build micro modular reactors, which would likely be completed before 2028.

“What’s important is that given the circumstances around this nuclear in this country, it is important that we start today with a fairly modest proof-of-concept plan, and they’re prepared to do that, whatever the size might be, 5, 10 megawatts (MW) and located in a safe place,” he said.

In November last year, Meralco and USNC signed a cooperative agreement to study the potential deployment of one or more micro modular reactor energy systems in the country.

Under the deal, USNC conducted a pre-feasibility study for four months.

“Our goal is to be able to start an operational plant perhaps in one of the island provinces to produce power and demonstrate that it’s a safe mode of producing power,” Mr. Pangilinan said.

An MMR unit or “nuclear battery” can “safely and reliably” provide up to 45 megawatt thermal of high-quality heat, delivered into a centralized heat storage unit, according to Meralco.

“One or more MMR nuclear batteries combine their heat in the heat storage unit, from where electric power or superheated steam can be extracted through conventional means to meet a wide range of power requirements, from tens to hundreds of MW,” the power distributor has said.

 Meralco is sending five engineers to a two-year graduate program abroad this year to develop skilled professionals and help the country develop local nuclear energy experts.

The scholarship is part of the company’s Filipino Scholars and Interns on Nuclear Engineering program that was launched in September last year.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

HSBC must prioritize Asian expertise in surprise CEO search

LONDON/SYDNEY/HONG KONG — Under Chief Executive Officer (CEO) Noel Quinn, Hongkong and Shanghai Banking Corp. (HSBC) navigated a global pandemic and a push by rebel investors to break up the 160-year bank. His surprise departure is an opportunity to accelerate its strategic pivot to Asia, investors say.

Top of Chairman Mark Tucker’s CEO wishlist for replacing Mr. Quinn, who gave notice of his departure on Tuesday, should be someone who can galvanize the bank’s 220,000-strong workforce to meet those goals in an uncertain global economy and amid rising tensions between East and West.

“I’d expect the candidate would be someone with vast experience in Asian and Middle East markets, who is open minded on the bank’s strategy and could re-consider the option of re-domicile HSBC’s headquarters to Asia,” said Simon Yuen, Hong Kong-based founder of Surich Asset Management.

HSBC, Europe’s largest lender by assets with a balance sheet of $3 trillion, is increasingly betting on its historic Asian ties to raise profits, as competition crimps revenue growth in other regions.

Since the financial crisis of 2008, HSBC has already shrunk its global footprint by around a quarter, exiting low-growth markets to plough capital and resources into Asia.

Nevertheless, pressure is mounting on HSBC to reassert its position before ambitious Chinese rivals steal more of its customers and slowly erode its Hong Kong dominance.

Mr. Quinn, 62, will relinquish his role by April 2025, handing Mr. Tucker his third search for an HSBC CEO, a role several industry commentators have branded the toughest job in banking.

“A lot of the world’s wealthy and high net worth individuals are based in Asia which means HSBC should put their first priority and major business focus in Asia, particularly China markets,” said Mr. Yuen, who did not disclose his firm’s holdings.

India and Dubai should be next in its focus, he added.

A source familiar with the matter told Reuters there was no live discussion on the location of HSBC’s global headquarters and the issue had not been on the board’s radar for some time.

Although Mr. Quinn was head of Commercial Banking for Asia-Pacific in Hong Kong between 2011 and 2015, some sources said he was short of the broad Asian experience believed necessary to fulfil the bank’s potential in the region, and appease its increasingly vocal investor base.

Ken Lui, a Hong Kong-based activist shareholder, who backed a recent campaign by HSBC’s largest shareholder Ping An Insurance Co to spin off its Asia business, is also looking for a leader more familiar with Asia.

“The group should consider candidates in Asia or Hong Kong, who have better experience doing business in the region…For our small shareholders, HSBC is a Hong Kong company,” he said.

Reuters was unable to verify if Mr. Lui still held shares.

HSBC has several contenders to succeed Mr. Quinn, analysts, investors and industry sources told Reuters, with Chief Financial Officer Georges Elhedery and Global Banking & Markets boss Greg Guyett seen as front-runners.

Its leading Asia-based executives, Surendra Rosha and David Liao, are currently seen as unlikely to make Mr. Tucker’s final shortlist. Nor are the only four women on HSBC’s senior management team.

HSBC has historically only ever appointed a CEO from within but analysts at Citi on Tuesday flagged several potential senior external candidates with HSBC experience including Singapore based-OCBC CEO Helen Wong, Lloyds Banking Group CEO Charlie Nunn, and former Standard Chartered investment bank chief Simon Cooper.

A spokesperson for Nunn declined to comment. Mr. Cooper and Ms. Wong could not immediately be reached for comment outside normal Asian office hours.

TUCKER’S TASK
HSBC’s new CEO will have several other business challenges to overcome, not least peaking interest rates and unrealized ambitions in wealth and asset management, where banks worldwide are chasing recurring fee income to offset volatile investment banking earnings.

Meanwhile, Asia continues to lurch between HSBC’s biggest prize and its biggest worry. In February, it reported a shock $3-billion charge on its stake in a Chinese bank, after a surge in the volume of troubled loans across the country.

Even as its European turnaround begins to bear fruit, Asia remains the bank’s most promising engine for profit, and where it hopes a real estate market slump is already in reverse, laying the foundations for lending and investment banking growth.

Mr. Quinn’s replacement will also need the ability to reunite senior executives overlooked for the role and forge an even-closer relationship with Mr. Tucker, who some British analysts have described as “HSBC’s only boss.”

“(They need) someone who can work well with Mark Tucker,” said Stanley Tsai, founder of investment advisory firm Antler Capital.

“A large cross section of shareholders would probably want someone with deep Asia background. Now that they’ve made it clear there’s no way they’ll spin that off, that may at least placate some dissenting voices,” Ms. Tsai added. — Reuters

MPIC’s CDO water unit seeks quick resolution with water district over unsettled accounts

Metro Pacific Water unit Cagayan de Oro Bulk Water, Inc. (COBI) said it is seeking immediate resolution with the Cagayan de Oro Water District (COWD) over the latter’s unsettled accounts.

“Efforts to reach an amicable solution with Cagayan de Oro Water District (COWD) over outstanding payments and water pricing have been impeded by a lack of COWD representation,” the company said in a statement on Wednesday.

It said that a meeting took place on April 30 with COWD, which included representatives from LWUA, Metro Pacific Water, Congressman’s office, and COBI.

“However, only one COWD director was present, thereby not reaching a quorum to provide a needed resolution, which is the outstanding balance of COWD to COBI,” the company said.

“This absence of representation from COWD raises concerns about their commitment to resolving the issue and compromising water supply for their consumers,” it added.

The company noted that LWUA has already intervened to mediate and prevent service disruptions, particularly during the El Niño season.

“They requested a 30-day extension to facilitate discussions between Metro Pacific Water and COWD. Unfortunately, despite multiple negotiation meetings, an agreement could not be reached,” it said.

“At this point, we are still open for an immediate and swift resolution of unsettled accounts.  We encourage COWD to work with us to ensure a secure water supply for all Cagayanons,” the company added.

Metro Pacific Water is a wholly owned water infrastructure investment subsidiary of Metro Pacific Investments Corp. (MPIC).

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific, the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — ALB

Not just for the natives

KARE-KARE: Filipino ox tripe stew with a rich and thick peanut sauce. — GWENNVIENN - WIKIPEDIA

HAS Filipino cuisine gained global acceptance? Or does the local fare appeal only to the natives?

There is an effort by local chefs, including those working abroad, to put local cuisine on the world’s culinary map. Other Asian offerings are already international favorites, including Thai and Vietnamese niches. This is on top of the Chinese and Japanese dominance already entrenched — in the culinary sense, of course.

Without losing their native allure, favorites like oxtail in peanut sauce, chicken and pork cutlets in vinegar and soy sauce and native sausages can be repurposed to remove the imagined perils that untried ingredients (like entrails and intestinal linings) can elicit. Let’s set aside for now the truly off-putting offerings like dinuguan, roughly translated as “bloodied,” featuring the innards of a pig cooked in its own blood, or the partially formed duck fetus with feathers and beak, swimming in amniotic fluids — a culinary challenge offered to hardy-looking foreigners (Indeed, they turn pale).

Can there be a nouvelle cuisine version for our traditional dishes? What are some culinary tweaks to our traditional fare that can be introduced to appeal to a broader market? Presentation is the key to giving native cuisine a new look and a broader appeal.

A culinary rebranding should exile the 30-viand offering showcased in 30 stainless steel bedpans (yes, like hospital equipment) behind a steamy glass; please point at the dish you want. To be avoided as well is the buffet table presentation with little candles burning under the chafing dish to prevent sauces from coagulating before they make their way to your arteries.

The traditional way of serving oneself from a buffet table results in a plate heaped with predominantly earth-colored odds and ends covering a mound of rice for later hunting, with the likelihood of flicked food stains on the diner’s shirt and an unsightly plate even after the meal.

Why not emulate the degustation method of small servings intended for solo consumption. These can be artfully presented, with sauces (like tiny, salted shrimps) merely daubed on the side, featuring designs seen in Rorschach testing.

Familiar dishes in novel settings are often categorized as “fusion.” The deconstruction of grandma’s traditional family recipe allows the substitution of ingredients, say caviar or anchovies for shrimp paste. What about fish belly or corned beef (not the one from a can) for chunky pork in the popular sour soup.

In keeping with these new versions, meats should be tender with minimal fat, already cut into bite-sized pieces to do away with the necessity of using hands to tear the meat from the clingy bone, for lupine chumping. You can use a steak knife, sir.

It is perhaps the rise of culinary schools that has driven graduates to experiment with small restaurants to offer such acquired skills as “plating”— serving a meal aesthetically, even using different shaped dishes. Newly minted chefs introduce elements of edibility, freshness and New Age eating options, enshrined by those striving for wellness.

The combination of new chefs (with more coming out of the pipeline) and smaller restaurants (like the one in the mezzanine of a luxury car dealership) try to make local cuisine at par with other global favorites like Italian and Spanish. The prices also try to catch up.

Thrown out too with this new approach is the old paradigm applied to Filipino restaurants that equates appeal with quantity. A stuffed stomach is no longer the only gauge for good food. No, this is no longer the home-cooking alternative where the argument against eating out in a fancy place is that it’s cheaper to cook this viand at home (This needs more salt).

Only when the aesthetics of gastronomy are honored can we join the ranks of international cuisines. Our food must look nonthreatening even if the taste will be surprising (think binagoongan and ox tripe). While eating light is hardly a characteristic of our food culture, it is the only way our cooking can travel abroad to appeal to compatriots taking their local friends there to “try our cuisine.”

Of course, we can still go native and heap our plates full of sauces competing for attention in the plate and palate. This is an option we will always have. That’s what home cooking is all about; of course, you need a second serving.

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

HONOR to launch Magic6 Pro phone in PHL next week

HONOR Philippines is set to launch next week the HONOR Magic6 Pro smartphone, which has a camera powered by artificial intelligence (AI) technologies, it said on Tuesday.

“We’re absolutely thrilled to unveil the HONOR Magic6 Pro, especially at a time when the demand for AI-driven solutions is soaring. This smartphone isn’t just about keeping up; it’s about setting the bar higher. With its award-winning features, it’s tailor-made for Filipinos who crave the latest in technology,” Stephen Cheng, Vice-President of HONOR Philippines, said in a statement.

The new 5G-enabled smartphone will be launched in the Philippines on May 8, the company said.

The HONOR Magic6 Pro features the HONOR Falcon Camera system at its rear, it said. It has a 50-megapixel (MP) wide camera, a 50-MP ultrawide lens, and a 180-MP periscope telephoto camera. It also has a 50-MP front camera.

“[This] device harnesses the power of AI to deliver unparalleled imaging experiences. With the ability to support up to 100x digital zoom, coupled with automatic detection of facial expressions and body movements, users can seize every moment with remarkable precision and clarity,” HONOR said.

Based on the brand’s website, the HONOR Magic6 Pro has a 6.8-inch quad-curved floating screen with an FHD+ 1280×2800 resolution, HDR peak brightness of 5,000 nits and global peak brightness of 6,000 nits.

It runs on Snapdragon 8 Gen 3 and MagicOS 8.0 based on Android 14. 

The phone has 12GB RAM and 512GB of storage.

The new phone also has the Magic Capsule feature, which allows users to quickly access their notifications.

“Seamlessly integrated into the touch screen interface, the Magic Capsule enhances user experience by providing quick access to relevant information related to notifications. No more navigating through multiple apps — with a simple tap, users can expand the Magic Capsule to delve deeper into their notifications, making interaction more intuitive and efficient,” the brand said.

The HONOR Magic 6 Pro has a silicon-carbon battery that supports up to 66 watts of wireless fast charging.

“Integrated with the Power Enhanced Chip HONOR E1, this device ensures extended battery endurance even in extreme weather conditions. With a massive 5,600mAh capacity, users can enjoy uninterrupted usage, showcasing exceptional low-temperature performance that defies expectations. To illustrate its capabilities, users can play the YouTube video for 81 minutes at -20 °C with just 10% battery level remaining,” HONOR added.

The phone also has an AI Privacy Call feature and was made via a double-sided 3D Carving process with premium materials.

The HONOR Magic6 Pro is available in Black and Epi Green color options. — BVR

US Justice Department takes step to make marijuana use a less serious crime

THE US Justice Department on Tuesday moved to make marijuana use a less serious federal crime, taking a step to remove the drug from a category that includes heroin in a shift that could shake up cannabis policy nationwide.

Shares of cannabis firms including Tilray, Trulieve Cannabis Corp., and Green Thumb Industries surged.

The Justice Department, which oversees the Drug Enforcement Administration, said Attorney General Merrick Garland recommended that cannabis be classified as a so-called schedule three drug, with a moderate to low potential for physical and psychological dependence, instead of schedule one, which is reserved for drugs with a high potential for abuse.

Penalties for possession and use of schedule three drugs can be less severe under federal law.

The proposal goes from the Justice Department to the White House Office of Management and Budget for review and finalization. A public comment period will follow. President Joseph R. Biden, a Democrat who is running for re-election in November, initiated a review of the drug’s classification in 2022, fulfilling a campaign promise that was important to left-leaning members of his political base.

Currently, the drug falls under the DEA’s class that includes heroin and LSD. It would be moved to a group that contains ketamine and Tylenol with codeine.

GAP BETWEEN STATE, FEDERAL LAWS
Reclassifying marijuana represents a first step toward narrowing the chasm between state and federal cannabis laws. The drug is legal in some form in nearly 40 states.

While rescheduling the drug does not make it legal, it would open up the doors to more research and medical use, lighter criminal penalties and increased private investment in the cannabis sector.

The Justice Department’s move came after the Health and Human Services Department in August recommended rescheduling cannabis as part of Mr. Biden’s ordered review.

Public support for marijuana legalization has risen from 25% of US adults in 1995 to 70% in 2023, according to polling group Gallup.

Colorado and Washington became the first states to allow recreational marijuana in 2012. Owen Bennett, an analyst at Jefferies investment banking group, said reclassification would increase the chances of full federal legalization within five years.

Colorado Governor Jared Polis said in a statement that he was “thrilled” that the Biden administration would be “correcting decades of outdated federal policy.”

Black Americans and communities of color have been disproportionately impacted by marijuana drug enforcement for decades. Black people are 3.6 times more likely than white people to be arrested for marijuana possession, despite similar usage rates, according to the American Civil Liberties Union.

According to the Pew Research Center, Black and white Americans used marijuana at roughly comparable rates in 2020. Yet Black people accounted for 39% of all marijuana possession arrests despite being only 12% of the US population then.

Mr. Biden and Vice President Kamala Harris are seeking to bolster support from Black voters for their re-election bid against former President Donald Trump, a Republican.

The change would also enable more medical research under the US Food and Drug Administration, which supports the reclassification. Cannabis has been successfully used to treat pain, spasticity and epilepsy, among other conditions.

Smart Approaches to Marijuana, a group against the “commercialization and normalization” of marijuana, said it would mount a legal challenge if the proposal is finalized. It said investors in the marijuana industry would be the biggest beneficiaries of the change.

“This industry, which has lobbied heavily to sell demonstrably harmful products, will now use this announcement to drive even more deliberate misinformation about these high-potency drugs to expand use and addiction,” Kevin Sabet, the group’s president, said in a statement.

While states have set a minimum age of 21 for legal recreational marijuana use, concerns are likely to be raised about whether the proposed change could affect youth.

Research has shown marijuana use in the teen years puts individuals at higher risk of not finishing high school, harm to brain development and later mental health disorders such as schizophrenia, according to the Centers for Disease Control.

A study published in March said there was no compelling evidence that legalizing marijuana sales to US adults increased consumption among young teens.

BOON TO CANNABIS BUSINESS
If marijuana’s classification were to ease at the federal level, cannabis companies could reap significant benefits.

Their shares could be eligible for listing on major stock exchanges, and the companies could receive more generous tax deductions.

Moreover, they could face fewer restrictions from banks. With marijuana illegal federally, most US banks do not lend to or serve cannabis companies, prompting many to rely on cash transactions. This has made some vulnerable to violent crime.

The National Cannabis Roundtable, which represents cannabis companies, said the move “is critical for state legal cannabis businesses to be treated with fairness … and to survive the threat the illicit market poses to the regulated market and public safety,” said Executive Director Saphira Galoob.

The Associated Press first reported the DEA’s reclassification recommendation on Tuesday. — Reuters

Manila lags in safety index list

The Philippine capital placed 152nd out of 181 cities in the Safety Index by Global Residence Index. Manila got a safety index score of 0.41 out of possible 1, the lowest in East and Southeast Asia. The index measures the overall safety of cities based on various risk factors such as homicide rates, political stability, personal security, and natural disasters.

 

Manila lags in Safety Index list

EXPLAINER | Taking care of the workforce

PHILSTAR

Rey Elbo, People Management Journalist and HR Coach, shares his expertise and opinions on how companies can provide better care for their employees.

Volatility may persist after ‘wild’ April for market

REUTERS

VOLATILE TRADING is expected to continue this month after a rocky April for the Philippine stock market, analysts said.

On Tuesday, the Philippine Stock Exchange index (PSEi) dropped by 1.02% or 69.15 points from the previous day to end April at 6,700.49, while the broader all shares index went down by 0.48% or 17.34 points to end at 3,525.94.

Month on month, the PSEi declined by 2.9% or 203.04 points from its 6,903.53 close on March 27.

“April saw the year’s first major correction as the market quickly priced in the decreasing probability of interest rate cuts this year as well as the heightened risk of wider geopolitical conflicts,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“It was also a particularly volatile month, with the index posting its highest and lowest levels since the start of 2024, and for a time, all index gains for the year were erased.”

Iran on April 13 launched more than 300 drones and missiles against Israel, its first direct attack on the country, in retaliation for a suspected Israeli air strike on its embassy compound in Damascus on April 11 that killed elite military officers, Reuters reported.

The month’s worst close was logged on April 16, with the PSEi hitting 6,404.97, lower than the end-2023 finish of 6,450.04, amid fears that the conflict would escalate. Easing tensions have allowed the index to rebound.

“April has been a wild ride. We saw the market attempt to break above 7,000, only to drop back down to 6,400 on geopolitical and inflation concerns. Now we’re halfway back to 7,000 again as first quarter earnings start to trickle in,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

For this month, “market choppiness” is expected to persist as lingering inflation concerns are expected to keep central banks at home and abroad hawkish, Mr. Colet said.

The US Federal Reserve was set to announce its latest policy decision overnight, with markets expecting it to keep its target rate at 5.25%-5.5% for a sixth straight meeting amid sticky inflation.

The Bangko Sentral ng Pilipinas is expected to follow suit and keep its policy rate at a 17-year high of 6.5% for a fifth straight time at its own meeting on May 16 due to elevated prices of key commodities like rice due to the impact of El Niño.

“Hopefully, the market can sustain the momentum heading into May, although I’m a bit cautious because there’s a saying in the market to sell in May and go away,” Mr. Garcia said.

“Historically, May is not a good month for the stock market, but hopefully we’ll get a stream of good earnings… Based on what we have so far, it looks like this will be a good earnings season,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort put the PSEi’s major support at 6,360 and major resistance 6,800-6,820. — Revin Mikhael D. Ochave with Reuters

PHL trade talks with UAE expected next week

REUTERS

THE PHILIPPINES is expected to start the first round of negotiations for a comprehensive economic partnership agreement with the United Arab Emirates (UAE) next week, with a target to wrap up talks within the year, the Trade department said.

Undersecretary Allan B. Gepty of the Department of Trade and Industry told reporters that the Philippines will start the first round of talks on May 6.

“That is, of course, a very important free trade agreement (FTA) for the Philippines given that we have a lot of professionals and also businesses in the UAE,” Mr. Gepty said.

“Definitely, an FTA will be a big help for them as far as a stable business environment is concerned, and of course, in the same manner, it’s also important for UAE investors here in the Philippines because, as always, a stable business environment would really encourage more investment in this country,” he added.

Mr. Gepty said that the agreement will cover market access, intellectual property, competition, digital trade, and government procurement.

“And given the importance of the FTA, we hope to finish the negotiations within the year in time for, if I’m not mistaken, the 50th anniversary of our diplomatic relations with the UAE,” he said.

“So, if we can conclude that within the year, that would be a good milestone in our diplomatic relations, particularly economic relations,” he added.

He said that the negotiations will take place alternately in the UAE and in the Philippines, with the first round in Dubai.

“In the first round of negotiation, basically, it will focus on… the terms of reference. We’ll have to work within those terms of reference (in later sessions),” he said.

“In the first round, we’ll have to work and negotiate on the text of the FTA. We hope to conclude as many chapters as possible,” he added.

Asked if there are any potential stumbling blocks in the talks, he said: “I see a lot of alignment when it comes to the trade and investment policy direction of the Philippines and the UAE, so that’s why I’m confident that I think we can conclude the negotiation within the year.”

He said that the Philippines will negotiate market access for its agricultural and industrial products as well as services.

“We want to secure a preferential arrangement for all our products of interest, from agricultural products to industrial products,” he said. “What is interesting in the case of the UAE is that the Philippines is very strong in exporting aerospace parts to the UAE.”

“We know that the UAE is also strong in the aerospace industry, as they have big airlines, so more than the parts, we are also eyeing services,” he added.

According to Tradeline Philippines, total trade between the Philippines and UAE grew over 5% to $1.9 billion in 2023. — Justine Irish D. Tabile

Sugar farmers proposing safety nets to go with easing of import process

PHILIPPINE STAR/MIGUEL DE GUZMAN

SUGAR producers are calling for “appropriate safety nets” as the government eases entry requirements for agricultural imports.

In a statement, the Sugar Council — composed of three planter federations — urged the government to pursue programs to raise the competitiveness of the sugar industry and the rest of Philippine agriculture.

“The removal of the (Sugar Regulatory Administration’s) import rules, including its (power to set) fees and charges, would amount to loss of regulatory authority and SRA revenue,” it said.

Administrative Order No. 20 (AO 20) instructed the Department of Agriculture, the Department of Finance, and Department of Trade and Industry to simplify the administrative procedures for agricultural imports, while removing non-tariff barriers.

Under AO 20, the SRA was instructed to streamline and standardize sugar import rules. It was also ordered to admit more traders into the sugar import program.

In a position paper, the council said the current rules of the SRA cannot be considered barriers to be removed.

“The integrity of SRA and its ability to perform its mandate must be preserved,” it said.

It added that AO 20 can open the floodgates to sugar imports “that will kill the domestic industry.”

The Sugar Council had recommended a sugar import program based on the SRA’s analysis of market conditions prior to the start of the milling season. Industry stakeholders must also be consulted.

It added that imports should be subject to a so-called “trigger point” for bringing supply and demand into balance via imports.

The council is composed of the Confederation of Sugar Producers Associations, Inc., the National Federation of Sugarcane Planters, Inc., and the Panay Federation of Sugarcane Farmers, Inc. — Adrian H. Halili