Peso rebounds as dollar weakens on Fed bets

February 15, 2024 | 9:00 pm

THE PESO rebounded on Thursday as the dollar was weaker amid hawkish statements from US Federal Reserve officials.

The local unit closed at P56.02 per dollar on Thursday, strengthening by eight centavos from its P56.10 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session at P56.06 against the dollar, which was also its weakest showing. Its intraday best was at P55.94 versus the greenback.

Dollars exchanged went down to $958.68 million on Thursday from $1.34 billion on Wednesday.

The peso rose as the dollar was weaker due to hawkish statements from Fed officials after faster-than-expected US consumer inflation in January, a trader said in a Viber message.

The peso-dollar pair consolidated as the dollar softened overnight, Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

The US dollar traded in a tight range on Thursday, as market players tried to gauge when the Federal Reserve will likely begin cutting interest rates as Fed officials weighed in on Tuesday’s inflation data, Reuters reported.

The US inflation data pushed back bets on a first Fed rate cut to the middle of the year, after showing the consumer price index (CPI) gained 3.1% in January on a year-on-year basis, compared with an expected 2.9% rise.

The market is currently pricing in no rate cut in March compared to 77% bets a month ago that rate cuts would start then, according to CME’s FedWatch tool. Markets see about a 60% chance the Fed will also hold rates at its May meeting.

Chicago Fed President Austan Goolsbee said on Wednesday the Fed’s path will still be on track even if price increases run a bit hotter-than-expected in coming months, and the central bank should be wary of waiting too long before it cuts interest rates.

Fed Vice Chair for Supervision Michael Barr said the Fed remained confident, but the January CPI numbers show the United States’ path back to 2% inflation “may be a bumpy one.”

The dollar index, which measures the greenback against six peer currencies, consolidated below a fresh three-month high of 104.97 touched on Wednesday, ahead of US retail sales in January due later on Thursday. It last sat mostly flat at 104.66.

For Friday, the first trader sees the peso moving between P55.80 and P56.30 per dollar, while Mr. Roces sees the peso trading from P55.90 to P56.30. A second trader expects the peso to range from P55.85 to P56.10 versus the greenback. — AMCS with Reuters

Shares extend climb as BSP keeps rates steady

February 15, 2024 | 9:00 pm

PHILIPPINE SHARES rallied for the third straight day on Thursday after the Bangko Sentral ng Pilipinas (BSP) kept benchmark rates steady.

The Philippine Stock Exchange index (PSEi) climbed by by 0.4% or 27.62 points to close at 6,882.15, while the broader all shares index rose by 0.37% or 13.32 points to end at 3,601.55.

“Local shares edged higher as investors cheered the Monetary Board’s (MB) policy meeting decision today. As widely expected by the consensus, the MB left the key benchmark interest rate untouched at 6.5%,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Thursday.

The BSP kept its target reverse repurchase rate at a 16-year high of 6.5% during its first policy meeting for the year, as expected by 15 out of 17 analysts in a BusinessWorld poll conducted last week. Interest rates on the overnight deposit and lending facilities were likewise left unchanged at 6% and 7%, respectively.

This marked the third straight meeting that the BSP maintained rates following a 25-basis-point off-cycle hike on Oct. 26.

“This Thursday, the local market rose by 27.62 points (0.4%) to 6,882.15. This is as investors took positive cues from Wall Street’s rebound overnight amid bargain hunting after a huge sell-off driven by the US’ January inflation. The anticipated pause in the Bangko Sentral ng Pilipinas’ policy rates also added to the positive sentiment,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

Wall Street ended sharply higher on Wednesday as ride-hailing platforms Lyft and Uber rallied, while Nvidia displaced Alphabet as the US stock market’s third most valuable company, Reuters reported.

The S&P 500 climbed 0.96% to end the session at 5,000.62 points. The Nasdaq gained 1.3% to 15,859.15 points, while Dow Jones Industrial Average rose 0.4% to 38,424.27 points.

Wall Street indexes slumped to over one-week lows on Tuesday and the blue-chip Dow posted its worst day in 11 months, after data showed core consumer prices in January stayed at nearly double the Federal Reserve’s 2% target, forcing investors to reassess their rate cut expectations.

Back home, almost all of the market’s sectoral indices ended higher on Thursday, except for property, which fell by 0.37% or 11.17 points to 2,937.38.

Industrials climbed by 1.03% or 95.31 points to 9,290.27; services increased by 0.72% or 12.48 points to 1,729.45; financials went up by 0.62% or 12.22 points to 1,982.45; holding firms rose by 0.37% or 24.37 points to 6,471.55; and mining and oil gained by 0.32% or 28.98 points to end at 8,855.71.

Value turnover climbed to P5.31 billion on Thursday with 584.23 million issues changing hands from the P4.71 billion with 510.63 million shares traded the previous day.

Advancers beat decliners, 91 against 83, while 65 names ended unchanged.

Net foreign buying went down to P631.54 million on Thursday from P685.2 million on Wednesday. — R.M.D. Ochave with Reuters

SMB’s ‘Death Squad’ delivers record-extending 29^th crown

February 15, 2024 | 8:35 pm

THE legend of the San Miguel Beer (SMB) “Death Squad” continues.

With highly-capable new faces and a heaven-sent replacement import in perfect harmony with the OGs from the previous “Death 5” era, the Beermen added to the myth with their smashing conquest of the PBA Season 48 Commissioner’s Cup.

In finishing off a fading Magnolia opponent in six games on Valentine’s Day, SMB’s deadly bunch delivered the franchise a record-extending 29^thtitle in the pro league while boosting their personal collections.

June Mar Fajardo, Chris Ross and Marcio Lassiter — the remaining cogs in the old San Miguel machine that collared a Philippine Cup five-peat — can now wear rings on all 10 fingers.

Coach Jorge Gallent, in only his second conference at the helm, and Bennie Boatwright, who took over from original import Ivan Aska last Christmas, carved their names as first-time PBA champions.

Same goes for free agent signing Jeron Teng, whose father Alvin was part of nine San Miguel championships in the 1980s and 1990s, and rookie Kyt Jimenez, the Youtube sensation who earned his spot in the star-studded roster.

CJ Perez got his second crown to spice up his maiden Best Player of the Conference and Finals MVP plums as Don Trollano, who only came on board this conference via trade, made it two each and Jericho Cruz, hero of Game 5, annexed his third.

“This is special its an import conferences,” said Mr. Fajardo, whose last championship with reinforcements was back in the 2019 edition of the Commissioner’s Cup.

It wasn’t an entirely smooth trek to the top for Mr. Fajardo and Co.

They got off to a 3-3 start in the conference but turned things around with an 11-game streak stretching to the first two games of the finals.

They stumbled in Games 3 and 4 afterwards, allowing Magnolia to draw level, then recovered quickly to take Game 5, 108-98, and close it out in dramatic come-from-behind fashion, 104-102.

It helped a great deal that SMB had their No. 1 supporter — San Miguel Corporation big boss Ramon S. Ang himself — to draw strength from. True to its moniker, San Miguel made the most its vast arsenal from the first to the 15^thman to get the job done.

“Everybody worked hard for this championship — from the coaches to the staff to the PTs and especially the players,” said Mr. Gallent.

“I’m just grateful and too honored in winning the championship,” said Mr. Perez.

And bad news for the rest of the field, the Beermen are just getting started.

Notes: As the triumphant San Miguel Beermen splashed beer on one another at the dugout, June Mar Fajardo and Chris Ross were ready with a scissor specifically for long-haired Kyt Jimenez. They took turns trimming the neophyte’s hair as the rest cheered on. — Olmin Leyba

WADA passes to Court of Arbitration for Sport decision on Philippines’ alleged noncompliance

February 15, 2024 | 8:34 pm

FOR now, the Philippines was given a reprieve as the World Anti-Doping Agency (WADA) passed the matter to the Court of Arbitration for Sport for it to decide on the country’s fate on whether or not it should be punished for alleged non-compliance to the world doping body’s code.

“On 13 February, WADA received formal notification from the NADO (national anti-doping agency) of the Philippines that it disputes the allegations of non-compliance against it,” said WADA in a statement posted on its website.

“WADA will now refer the matter to the Court of Arbitration for Sport (CAS) for its consideration. As such, the consequences will not apply until CAS makes its ruling,” it added.

The country’s NADO is the Philippine National Anti-Doping Agency (PHI-NADO), which is under the Philippine Sports Commission’s (PSC) auspices and chaired by Dr. Alejandro Pineda, Jr. PSC Chair Richard Bachmann did not comment on the matter at press time.

Pineda too.

But they, as well as the country, could collectively breathe a sigh of relief as it could now plead its case to the more powerful CAS while temporarily avoiding the possibility of the punishment recently received by Angola, whose flag will no longer be flown in WADA-sanctioned events including the Olympics.

Unlike the Philippines, Angola decided not to contest WADA’s allegation that led to it being slapped with a stiff sanction.

Angola’s specific offense was its “failure to implement the 2021 version of the WADA Code” while the Philippines was being accused of not resolving “a number of critical non-conformities, as identified from WADA’s Code Compliance Questionnaire exercise.”

Because of it, both countries were inserted into WADA’s “watchlist” in September last year and were given until January this year to execute corrective action plans.

While the country had taken some actions to rectify the impasse, WADA said the issue remained unsolved and gave the Philippines 21 days to either dispute or accept the allegation of non-compliance.

The country ended up doing the former, leaving its fate now at the hands of the CAS, which would influence how WADA would make the final decision. — Joey Villar

Magnolia Hotshots lose again in fourth finals

February 15, 2024 | 8:34 pm

IT WAS like a funeral march as Magnolia exited the confetti-filled floor of the Big Dome.

The Hotshots, the best team of the PBA Season 48 Commissioner’s Cup eliminations, were left to lick their wounds after falling short. Again.

“Probably the saddest birthday,” said veteran Paul Lee, whose team lost for the fourth time in four finals appearances since 2018 on the day he turned 35.

No use dwelling on this, though.

“Credit to San Miguel, they really wanted it tonight. As for us, move on; tomorrow is another day.”

The Hotshots had their best shot at getting over the hump, which started right after their Season 42 Governors’ Cup championship. They lost back-to-back to SMB in the Philippine Cup finals of Seasons 43 and 44 then to TNT in the Season 46 All-Filipino title duel prior to this failed attempt.

Magnolia looked headed to force a deciding Game 7 when it led 95-86 at the 4:58 mark of the fourth. But the Hotshots failed to stop the SMB juggernaut in the windup.

“We hung in there the whole game but I felt like we folded in the fourth quarter,” import Tyler Bey rued.

Mr. Bey, who led Magnolia to top seeding in the playoffs, expressed willingness to return and finish the job.

“It’s amazing. Personally I love the Philippines, I love Magnolia. Hopefully, we can run it back,” he said.

“We didn’t get the result we wanted but I just feel like I met a great group of guys. I just hope I can run it back and just go from there.” — Olmin Leyba

National Bullpups, Santo Tomas Golden Spikers clash in UAAP Season 86 men’s volleyball opener

February 15, 2024 | 8:33 pm

THE BIGGER spotlight in the University Athletic Association of the Philippines (UAAP) Season 86 volleyball tournaments may be on the women’s play but the men’s side — led by champion National University (NU) and the rising University of Santo Tomas (UST) — vow to deliver the same show, if not better, starting this weekend.

Spiking side by side with the women’s teams, the NU Bullpups and the UST Golden Spikers will have no time to heat up when they banner the men’s opener on Sunday in a heavyweight finals rematch. NU is out to extend its dynasty to four consecutive years accompanied by an absurd 34-game winning streak since the 81^st season, including the program’s first-ever tournament sweep (16-0) in Season 85 led by team captain and Finals MVP Joshua Retamar. “Its challenge every season defending the crown,” said NU mentor Dante Alinsunurin, who will have his prized setter Retamar for one last hurrah to spearhead their mission.

Well, the Bulldogs indeed have some motivation to fan the fire of their four-peat bid with no less than the Golden Spikers in the way following their tough defeat in the PNVF Challenge Cup late last year that served as their final build-up for the UAAP. UST, led by UAAP Season 85 Rookie-MVP Josh Ybañez, eliminated NU in the semifinals before slaying pro team Cignal HD in the finals for the PNVF crown.

Mr. Ybañez also captured the MVP award in the PNVF and now sets his sights to just one goal and one team. — John Bryan Ulanday

British billionaire Jim Ratcliffe’s Man Utd stake rubber-stamped by FA

February 15, 2024 | 8:30 pm

Sir_Jim_Ratcliffe — JIM RATCLIFFE — MANUTD.COM

LONDON — British billionaire Jim Ratcliffe’s acquisition of a 25% stake in Manchester United was given the green light by the Football Association (FA) on Wednesday, making the deal a near-certainty.

The FA confirmed its approval in a statement a day after the Premier League also ratified the deal after the 71-year-old Ratcliffe passed their Owners’ and Directors’ test.

Mr. Ratcliffe struck a $1.25-billion deal in December for a minority stake in the club and will also invest $300 million into infrastructure improvements.

The deal will see lifelong fan Mr. Ratcliffe take charge of the club’s soccer operations with an emphasis on upgrading the Old Trafford stadium and strengthening the playing squad.

Ratification was dependant on approval from the Premier League and Football Association and with that now assured, the deal will be completed once Mr. Ratcliffe has acquired 25% of the outstanding Class A shares.

That is expected to happen before Feb. 17.

Mr. Ratcliffe’s purchase ended more than a year of uncertainty after majority owners, the Glazer family, said in November 2022 they were looking at strategic options.

The American Glazers have come under heavy criticism from fans who blame them for a steady decline in the fortunes of the 20-time English league champions after a period of domination under manager Alex Ferguson who retired in 2013.

While many fans would have hopes for a complete sale, Mr. Ratcliffe’s arrival had been broadly welcomed.

His influence is already being felt at United with INEOS sports director Dave Brailsford, who carved out his reputation with incredible success at British Cycling and professional team INEOS Grenadiers, to join him on a new-look board.

Mr. Ratcliffe also moved to appoint Omar Berrada as the club’s new CEO after he left his role as head of football operations at rivals Manchester City. — Reuters

Dreaming of James

February 15, 2024 | 8:30 pm

Before anything else, major props should be given Warriors owner Joe Lacob for even attempting to pry LeBron James from the Lakers. He must have known from the start that getting the most influential personality in the most recognizable colors in the National Basketball Association was a Sisyphean endeavor. And yet he still plodded on, hanging on to the hope that the superstar who revolutionized player movement — but, it must be noted, who also made sure to honor every signed contract in the process — would be open to the notion of fulfilling a publicly stated desire to share the floor with Stephen Curry.

Needless to say, Lacob was emboldened by James’ passive-aggressive stance heading into the trade deadline. His body language, noncommittal responses during pressers, and even social media posts (notably a tweet with the hourglass emoji) made it seem like he was open to another change of scenery. Coupled with the need for the Warriors to do something — anything, really — in order to pour life into a sputtering campaign, the impetus was there to take advantage of an apparent opening. And, yes, it certainly helped that fellow Klutch client Draymond Green enthusiastically pushed for it, evoking memories of Kevin Durant’s arrival and the ensuing success of the blue and yellow in the middle of the last decade.

Unfortunately for Lacob, James is firmly entrenched with the Lakers. He has pursuits outside the court that tie him to Tinseltown, and not even a closer look at a fifth title figures to make him see how greener the grass is elsewhere. It’s not even a matter of the Warriors not having the right pieces to offer. Klay Thompson, Jonathan Kuminga, and a couple of draft picks may not be a fair return on paper, but there’s no doubt that Jeanie Buss and Rob Pelinka would have accepted the package if he really wanted out.

Make no mistake. James pairing with Curry would be a blockbuster, and Lacob knows it. Forget that it smacks of desperation — a clear mortgage of the future for immediate returns that are nowhere close to being guaranteed. He had to go for it despite the mind-boggling amounts in checks he is already cutting. And the fact that he was rebuffed doesn’t mean he will not try anew. If anything, the offseason looks to be a slugfest for the services of the would-be-40-year-old, and he’ll be among those jockeying for position at the front of the line.

For now, though, the Warriors and Lakers are left to wonder what’s in store while fighting for scraps. Given how things are going, they’re likely to do battle in the play-in tournament — not exactly befitting their stature. Of course, it’s also why they want James on board. If nothing else, he dares them to dream.

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

Israel vows action against Hamas in Rafah amid calls for restraint

February 15, 2024 | 6:25 pm

Israel-Palestine Hamas-war-Gaza — PHOTO SHOWS a Palestinian looking at the site of an Israeli strike on a mosque, amid the conflict between Israel and the Palestinian Islamist group Hamas, in Rafah in the southern Gaza Strip on Feb. 12, 2024. — REUTERS

CAIRO/JERUSALEM — Israel will press ahead with an offensive against Hamas in Rafah, the last refuge for displaced Palestinians in southern Gaza, after allowing civilians to vacate the area, Prime Minister Benjamin Netanyahu said on Wednesday.

The Israeli leader, who is under growing international pressure to hold off on the planned assault, gave no indication as to when the offensive might take place or where the hundreds of thousands of people now crammed into Rafah might go.

His comments came a day after talks in Cairo on a possible ceasefire and the handover of hostages held by Hamas ended inconclusively, stoking fears among the displaced Palestinians that Israel would soon storm Rafah, which abuts Egypt.

“We will fight until complete victory, and this includes a powerful action in Rafah as well, after we allow the civilian population to leave the battle zones,” Mr. Netanyahu said on his Telegram account.

Earlier, Mr. Netanyahu’s office said Hamas had presented no new offer for a hostage deal in the Cairo talks and that Israel would not accept the militant group’s “ludicrous demands.”

“A change in Hamas’ positions will make it possible to move forward in the negotiations,” it said.

Relatives of Israeli hostages held by Hamas said they would barricade the Israeli defense headquarters on Wednesday in protest at what they said was a scandalous decision by Israel not to send negotiators to the next session of the Cairo talks.

The move “amounts to a death sentence” for the 134 hostages in Hamas’ tunnels, the group said, in a sign of growing domestic dissent in Israel after four months of the Gaza war.

The Israeli military says it wants to flush out Islamist militants from hideouts in Rafah and free hostages being held there after the Hamas rampage in Israel on Oct. 7, but has given no details of a proposed plan to evacuate civilians.

“We are now counting down the days before Israel sends in tanks. We hope they don’t but who can prevent them?” Said Jaber, a Gaza businessman who is sheltering in Rafah with his family, told Reuters via a chat app.

As night fell on Wednesday, more than 2,000 Palestinians who had been sheltering in Nasser Hospital in Khan Younis in southern Gaza arrived in Rafah after being ordered to evacuate by the Israeli army, residents and some witnesses said.

‘UNFATHOMABLE CATASTROPHE’
Richard Peeperkorn, the World Health Organization representative for Gaza and the West Bank, said an assault on Rafah would be “an unfathomable catastrophe… and would even further expand the humanitarian disaster beyond imagination.”

French President Emmanuel Macron raised similar concerns in a phone call on Wednesday with Mr. Netanyahu, the president’s office said, saying further forced displacements of people could also bring regional escalation. German Foreign Minister Annalena Baerbock said before talks with Mr. Netanyahu that people in Rafah with nowhere to go “cannot simply vanish into thin air.”

Israel says it takes steps to minimize civilian casualties and accuses Hamas fighters of hiding among civilians, including in hospitals and shelters — something the militant group denies.

On Wednesday Israel said it had approved the use of Starlink services — the satellite network of billionaire entrepreneur Elon Musk — to help communications at a field hospital in Gaza and in Israel itself for the first time.

Israeli forces shelled eastern areas of Rafah overnight, and pounded several areas of Khan Younis in southern Gaza, residents said.

The health ministry in the Hamas-governed enclave said Israeli forces were continuing to isolate the two main hospitals in Khan Younis, and that sniper fire at Nasser Hospital had killed and wounded many people in recent days.

An Israeli airstrike on a house in Al-Nusseirat refugee camp in central Gaza killed six people, health officials said.

At least 28,576 Palestinians have been killed, including 103 in the past 24 hours, and 68,291 wounded in Israeli strikes on Gaza since Oct.7, according to the health ministry in Gaza.

Many other people are believed to be buried under rubble of destroyed buildings across the densely populated Gaza Strip, much of which is in ruins. Supplies of food, water and other essentials are running out and diseases are spreading.

At least 1,200 Israelis were killed and around 250 were taken hostage in the Hamas raid on southern Israel on Oct. 7, according to Israeli tallies.

Israel has vowed to fight on until it eradicates Hamas and has made the return of the last hostages a priority. Hamas says Israel must commit to ending the war and withdrawing from Gaza.

BORDER TENSIONS
Diplomacy is focused not just on halting the war and securing the hostages’ release but also on preventing the conflict from spreading across the region.

The armed Lebanese group Hezbollah, which backs the Palestinians, has frequently fired across the border into northern Israel since the war began in Gaza.

In the latest clashes on Wednesday, Israel said it had carried out retaliatory strikes on Hezbollah targets in Lebanon after rocket attacks which it said had killed an Israeli female soldier, struck a military base and wounded several other people.

A woman and her two children were killed in an Israeli strike on the village of al-Sawana, two Lebanese security sources said. Hezbollah said another strike on a separate town killed one of their fighters.

Diplomatic efforts continued on Wednesday, with Turkish President Tayyip Erdogan making his first visit to Egypt in over a decade. He said Turkey stood ready for cooperation with Egypt to rebuild Gaza after the war. — Reuters

Indonesians wake up to new presumed President, ex-commander Prabowo

February 15, 2024 | 6:24 pm

JAKARTA — After months of uncertainty, Indonesians on Thursday woke to a new presumed president, ex-special forces commander Prabowo Subianto, who appeared in unofficial counts to comfortably win the hotly contested election in a single round.

The 72-year-old defense minister declared before jubilant supporters late on Wednesday that it was a “victory for all Indonesians.”

Quick ballot counts by independent pollsters showed he won nearly 60% of votes, surpassing pre-election projections of a slim majority. Such counts have proven accurate in past votes.

The veteran politician with a hardline military past had an insurmountable lead over rivals, ex-governors Anies Baswedan and Ganjar Pranowo, who trailed at least 33 points behind.

The national election agency is expected to announce official results by March 20.

“His apparent one-round victory should remove uncertainty over who will lead the next administration,” said Barclays economist Brian Tan. “He appears to be the outgoing President Joko Widodo’s choice of successor and has promised policy continuity, which should provide some reassurance to investors.”

Jokowi, as the popular incumbent is known, did not explicitly endorse any candidate, but Mr. Prabowo’s running mate is the president’s eldest son Gibran Rakabuming Raka, who is set to be the youngest vice-president in Indonesia’s history.

The pair have pledged to continue Jokowi’s efforts to position the resource-rich G20 economy as an electric vehicle hub, extend a massive infrastructure and social assistance push, and create millions of jobs.

Second-place rival Mr. Anies, ex-governor of Jakarta who got 25% of the vote, said his team would wait for the official results and respect the people’s decision.

Both Anies’ and Ganjar’s teams earlier said they were probing allegations of “systematic and massive fraud,” but did not provide evidence.

Analysts have said there were no signs of electoral fraud.

But the days leading up to the vote were marred by protests against Jokowi, criticized over political interference after he made highly publicized appearances with Prabowo, and after a last-minute court ruling tweaked eligibility criteria, enabling his son to join the leading ticket.Jokowi’s allies have denied he meddled.

The world’s biggest single-day election saw nearly 259,000 candidates vie for 20,600 posts across the archipelago.

In the legislative contest, parties backing Mr. Prabowo had about 42% of votes, while an alliance behind Mr. Anies had 27%, suggesting a Prabowo government could have strong parliamentary backing.

If confirmed, the new president will take office in October. — Reuters

US warned allies about Russian space and nuclear capabilities, source says

February 15, 2024 | 6:23 pm

RUSSIAN PRESIDENT Vladimir Putin held via videoconference a briefing with permanent members of the Security Council on Feb. 13.

WASHINGTON — The United States has told Congress and allies in Europe about new intelligence related to Russian nuclear capabilities that could pose an international threat, a source briefed on the matter told Reuters on Wednesday.

The new capabilities, related to Russian attempts to develop a space-based weapon, do not pose an urgent threat to the United States, the source said.

The intelligence came to light after Representative Mike Turner, Republican chair of the US House of Representatives intelligence committee, issued an unusual and cryptic statement on Wednesday warning of a “serious national security threat.”

Sources later said the warning was related to Russian capabilities in space, related to satellites. One of the sources said the issue is serious, but is not related to an active capability nor should it be a cause for panic. “I am requesting that President Biden declassify all information relating to this threat so that Congress, the Administration, and our allies can openly discuss the actions necessary to respond to this threat,” Mr. Turner said in the statement, providing no further information.

Citing a current and a former US official, the New York Times reported earlier that the new intelligence was related to Russia’s attempts to develop a space-based anti-satellite nuclear weapon. ABC News reported earlier that the intelligence had to do with such a capability. Current and former officials said the nuclear weapon was not in orbit.

Mr. Turner’s statement was released in the midst of debate in Congress over how the United States should be dealing with global threats from Russia and other rivals, with security hawks urging greater global involvement and some lawmakers most closely allied with Republican former President Donald Trump advocating for a more isolationist “America First” approach to world affairs.

Mr. Turner recently returned from leading a bipartisan congressional delegation to Ukraine, after which he warned fellow lawmakers that time was running out for Ukraine in its fight against Russian invaders.

The Biden administration has been ramping up its criticism of House Republicans for possibly blocking a $95-billion bill passed by the Senate that would supply aid to Ukraine, Israel and Taiwan. Supporters of the bill argue that a major reason for the United States to back the government in Kyiv is to push back against threats from Russia that extend beyond Ukraine.

‘NOT A CAUSE FOR PANIC’
House Speaker Mike Johnson, a staunch Trump ally who says he will not rush to allow a vote on the Senate bill, told reporters at the Capitol there was no need for public alarm. “Steady hands are at the wheel. We’re working on it and there’s no need for alarm,” he said.

Senators Mark Warner and Marco Rubio, the Democratic chair and Republican vice chair, respectively, of the Senate Intelligence Committee, issued a joint statement saying their panel has the intelligence in question and has been “rigorously” tracking the issue.

A source familiar with the matter said Mr. Warner and Mr. Rubio had been briefed on the threat weeks ago. The source said the issue was not unrelated to the security spending bill, but there is no direct tie between them.

Representative Jim Himes, the top Democrat on the House intelligence panel, said the issue in Turner’s statement is significant, “but it is not a cause for panic.”

Jake Sullivan, President Joseph R. Biden’s national security adviser, declined to provide specifics. He said he had arranged a briefing for Thursday with congressional leaders with administration intelligence and defense professionals, and that he was surprised by Mr. Turner’s decision to issue the statement.

“I’m not in a position to say anything further today,” Mr. Sullivan told a briefing. “Like I said, I look forward to the discussion with (Mr. Turner) and obviously from there we will determine how to proceed, but standing here at the podium today I can’t share anything further.” — Reuters

Japan takes another shot at next-generation H3 rocket launch

February 15, 2024 | 6:22 pm

TOKYO — Japan will try again this weekend to launch its new flagship rocket, the H3, in a bid to restore its space program after the booster’s failed inaugural flight last year derailed satellite and planetary exploration plans.

Coupled with the historic “pinpoint” moon landing of its SLIM spacecraft last month, a successful H3 liftoff would demonstrate Japan’s space capabilities to its close ally the United States as a counterweight to China’s military and technological might.

“For Japan, the H3’s success is crucial to prove to the world that it is capable of launching satellites continuously,” said Kazuto Suzuki, a University of Tokyo professor specializing in space policy. “Making a good spacecraft is meaningless if you can’t launch it on a rocket.”

The Japan Aerospace Exploration Agency (JAXA) plans to launch its second H3 on Saturday from its Tanegashima Space Center in southern Japan. JAXA delayed the launch by two days to avoid high winds and thunders.

Developed by JAXA and prime contractor Mitsubishi Heavy Industries, the H3 was meant to replace the two-decade-old H-IIA rocket and reduce per-launch costs by half, to as low as five billion yen ($33.2 million).

But the H3’s first flight in March ended up with ground control destroying the rocket in midflight because its second-stage engine failed to ignite. JAXA listed three possible electrical faults in a review released in October but could not identify the direct cause.

Two recent H-IIA launches, which had no issues, have raised hopes for the H3’s second attempt, Masayuki Eguchi, head of Mitsubishi Heavy’s defense and space business, said last month.

H-IIA has successfully flown 47 of 48 times since 2001, but JAXA will retire it after two more shots.

The H3’s unsuccessful initial flight led to the loss of a 28-billion-yen land observation satellite, ALOS-3. The setbacks of the H3 and another small rocket, Epsilon, have caused widespread delays in Japanese satellite launches.

Saturday’s H3 launch carries a dumbbell-shaped 2.6-ton dummy mass simulating a satellite payload. Two earth observation micro-satellites, one from Canon Electronics and another from Seiren, are onboard as secondary payloads.

SHIFTED LANDSCAPE
JAXA’s 63 m (297 ft) H3 rocket can carry a 6.5-ton payload into space, more than H-IIA’s maximum of 6 tons, and fly more cheaply by adopting simpler structures and automotive-grade electronics. Launch operator Mitsubishi Heavy hopes to launch six H3s a year once stable production is established.

Securing cheap, independent access to the space is the H3’s biggest mission, as Japan envisions increasingly ambitious space plans with more frequent launches. The H3 is also tasked with carrying a lunar lander for the joint Japan-India LUPEX project and a cargo spacecraft for the US-led Artemis moon exploration program.

Another objective is to win orders from global clients, as satellite launch demands have skyrocketed thanks to affordable commercial vehicles such as SpaceX’s reusable Falcon 9. The European Space Agency also plans to launch its lower-cost Ariane 6 for the first time this year, following the successful inaugural flight last month of the United Launch Alliance Vulcan rocket, a joint venture between Boeing and Lockheed Martin.

“The landscape has dramatically shifted in the decade since we started the H3’s development,” Masashi Okada, JAXA’s H3 project manager, told a news conference on Tuesday.

Okada said that the H3 could tap into the burgeoning demand for launch vehicles but that it would require “various and continual efforts” to adjust to market needs and competition.

Unlike SpaceX’s agile development process centered around frequent test flights, Japan’s engineering style focuses on eliminating errors, which led to the 11-month pause after the failed H3 launch, said Ko Ogasawara, Tokyo University of Science professor and a former Mitsubishi Heavy aerospace engineer.

“This may appear slow… but we are taking the most reliable path with minimum resources,” Ko Ogasawara said.

In the small rocket market, Tokyo-based startup Space One will launch its Kairos on March 9, while JAXA has not been able to schedule the first launch of new Epsilon S. Kairos hopes to mark Japan’s second commercial rocket series to reach space after Interstellar Technologies’ MOMO in 2019. — Reuters