Romania, Bulgaria fully join EU’s borderless Schengen zone

January 2, 2025 | 6:12 pm

European Union Flag-EU — A EUROPEAN UNION’S flag flutters outside the European Commission headquarters in Brussels, Belgium, Oct. 15, 2020. — REUTERS

ROMANIA and Bulgaria scrapped land border controls to become full members of the European Union’s (EU) Schengen free-travel area on Wednesday, joining an expanded bloc of countries whose residents can travel without passport checks.

Fireworks lit the sky at a crossing close to the Bulgarian border town of Ruse just after the stroke of midnight as the Bulgarian and Romanian interior ministers symbolically raised a barrier on the Friendship Bridge straddling the Danube River. The crossing is a major transit point for international trade.

Checks on traveling by air and sea from Bulgaria and Romania were lifted in March 2024, but land checks continued until Austria last month dropped a veto it had maintained on the grounds that more was needed to stop irregular migration.

Border checks between France, Germany, Belgium, the Netherlands and Luxembourg were first dropped in 1985. The Schengen area now covers 25 of the 27 EU member states, as well as Iceland, Liechtenstein, Norway and Switzerland.

Ireland and Cyprus are not members of the Schengen zone. — Reuters

Apple offers rare iPhone discounts in China as competition intensifies

January 2, 2025 | 6:11 pm

BEIJING — Apple is offering rare discounts of up to 500 yuan ($68.50) on its latest iPhone models in China, as the US tech giant moves to defend its market share against rising competition from domestic rivals like Huawei.

The four-day promotion, running from Jan. 4-7, applies to several iPhone models when purchased using specific payment methods, according to its website.

The flagship iPhone 16 Pro with a starting price of 7,999 yuan and the iPhone 16 Pro Max with a starting price of 9,999 yuan will see the highest discount of 500 yuan. The iPhone 16 and iPhone 16 Plus will receive a 400 yuan reduction.

The discounts come as consumers remain cautious with spending amid China’s slowing economy and deflationary pressures, with the country’s consumer inflation hitting a five-month low in November.

Apple is grappling with declining market share in China, the world’s largest smartphone market, where local manufacturers have intensified competition.

Huawei has emerged as a particularly strong challenger since its return to the premium segment in August 2023 with locally-made chipsets. Huawei had cut the prices of a variety of high-end devices, including mobile phones, by up to 3,000 yuan over the weekend on one of China’s leading e-commerce platforms.

Apple briefly fell out of China’s top five smartphone vendors in the second quarter of 2024 before recovering in the third quarter. The US company’s smartphone sales in China still slipped 0.3% during the third quarter from a year earlier, while Huawei’s sales surged 42%, according to research firm IDC.

The Apple promotion also includes discounts of 200 to 300 yuan on older iPhone models, as well as other categories of products such as MacBook laptops and iPad tablets. Customers must use designated payment methods including WeChat Pay or Alipay to qualify for the discounts. — Reuters

Chinese hack of US Treasury breached sanctions office – report

January 2, 2025 | 6:10 pm

WASHINGTON — Chinese government hackers breached the US Treasury office that administers economic sanctions, the Washington Post reported on Wednesday, identifying targets of a cyberattack Treasury disclosed earlier this week.

Citing unnamed US officials, the Washington Post said hackers compromised the Office of Foreign Assets Control and the Office of Financial Research and also targeted the office of US Treasury Secretary Janet Yellen.

The department earlier this week disclosed in a letter to lawmakers that hackers stole unclassified documents in a “major incident.” It did not specify which users or departments were affected.

Asked about the paper’s report, Liu Pengyu, spokesperson for the Chinese Embassy in Washington, said the “irrational” US claim was “without any factual basis” and represented “smear attacks” against Beijing.

The statement said China “combats all forms of cyberattacks” and did not directly address the Washington Post’s reporting on specific targets.

The Treasury Department did not immediately respond to requests for comment on the newspaper report.

The Washington Post quoted its sources as saying that a top area of interest for the Chinese government would be Chinese entities that the US government may be considering designating for financial sanctions.

The Treasury letter earlier this week said hackers compromised third-party cybersecurity service provider BeyondTrust.

Chinese firms, individuals and entities have been a frequent target for US sanctions, which Washington has used as a key tool in its foreign policy towards Beijing.

The United States considers China its biggest foreign policy challenge, and last month Yellen told Reuters that Washington would not rule out sanctions on Chinese banks as it seeks to reduce Russia’s oil revenue and access to foreign supplies to fuel its war in Ukraine. — Reuters

Sam Cariño named Asialink president and CEO after 20 years at Global Dominion

January 2, 2025 | 2:34 pm

Sam Cariño — Sam Cariño, Asialink president and CEO

By Sarah Tabing

Global Dominion Financing, Inc. (GDFI), a leading financial services provider in the Philippines, continues to make waves in the industry as one of its long-standing employees, Sam Cariño, takes on a pivotal role as the new President and CEO of Asialink.

With 20 years of experience at Global Dominion, Sam’s career journey highlights the company’s reputation for fostering leadership development. Starting as an account officer, Sam worked his way up, showcasing exceptional skills and a dedication to growth.

His new role at Asialink is a testament to the culture of excellence and empowerment cultivated within Global Dominion.

This milestone reflects Global Dominion’s broader commitment to developing leaders who make significant contributions to the financial services sector. Through comprehensive training programs, mentorship, and opportunities for career advancement, the company has built a reputation as a nurturing ground for professionals aiming to excel in their fields.

Global Dominion’s president and managing director, Patricia Palacios, emphasized the company’s commitment to fostering talent, “At Global Dominion, we believe in empowering our people to grow into leaders who drive progress in the financial services industry. Sam’s journey with us and his appointment as President and CEO of Asialink reflect the values we champion—integrity, innovation, excellence, and grit. As we continue to achieve rapid growth, including reaching 1 billion pesos in loan disbursements, we remain dedicated to investing in our employees. Their talent and commitment are the foundation of our success and our mission to simplify financing for every Filipino.”

The appointment of Sam Cariño underscores Global Dominion’s role as more than just a financial institution—it is a hub for talent development, where individuals are equipped with the skills and opportunities to excel in leadership positions.

Sam’s new role at Asialink marks the next chapter in a remarkable career, one that began with Global Dominion’s vision of transforming not only the lives of its customers but also the careers of its employees. His success serves as an inspiration for the entire team and the broader financial services industry.

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[B-SIDE Podcast] The rise of an entrepreneurial mindset among Filipino freelancers

January 2, 2025 | 10:37 am

Follow us on Spotify BusinessWorld B-Side

Filipinos have evolved their way of thinking from that of an employee to that of an entrepreneur, according to Nagesh Devata, senior vice president for APAC at Payoneer, a business payments platform. In this B-Side episode, he shares insights about freelancing and digital finance trends in the Philippines and Southeast Asia.

Interview by Patricia Mirasol
Audio editing by Jayson Mariñas

Follow us on Spotify BusinessWorld B-Side

Venezuela economy grew over 9% in 2024, president says

January 2, 2025 | 10:04 am

Venezuela flag — VENEZUELAN FLAG flutters outside the Torrejon de Ardoz Air Force Base outside Madrid, Spain, Sept. 8, 2024. — REUTERS

CARACAS – Venezuela’s economy grew over 9% in 2024, President Nicolas Maduro said, according to a transcript of an interview published by Mexican media outlet La Jornada on Wednesday.

“In 2023, we had 5.5% (growth). In 2024, according to all scientific, statistical, and technical data, we will surpass 9% growth in gross domestic product, with a very high level of growth in the real economy, as well as in the hydrocarbons sector,” Mr. Maduro told Spanish journalist Ignacio Ramonet.

Venezuela’s economy in recent years has experienced a prolonged crisis marked by triple-digit inflation and the exodus of millions of Venezuelans seeking better opportunities elsewhere.

In 2019, the government loosened controls on the private sector, allowing for an informal dollarization, which provided a lifeline to key sectors of the economy.

However, analysts believe the strategy has not been sufficient for a full economic recovery.

The interview with Mr. Maduro is set to air on Venezuelan state television on Wednesday evening. – Reuters

Tesla Cybertruck explodes outside Trump Las Vegas hotel, killing driver

January 2, 2025 | 10:01 am

LAS VEGAS – A Tesla Cybertruck exploded in flames outside the Trump International Hotel Las Vegas on Wednesday, killing the driver and injuring seven others, and the FBI was investigating whether the blast was an act of terrorism, officials said.

Videos taken by witnesses inside and outside the hotel showed the vehicle exploding and flames pouring out of it, as it sat just outside the hotel.

The incident occurred just hours after a man drove a truck into crowds of New Year’s Day revelers in New Orleans, killing 15.

The Trump International Hotel in Las Vegas is part of the Trump Organization, the company of President-elect Donald Trump, who will return to the White House on Jan. 20. Tesla CEO Elon Musk was a key backer of Mr. Trump in his 2024 presidential campaign and is also an adviser to the incoming president.

“Obviously a Cybertruck, the Trump hotel – there’s lots of questions that we have to answer,” Las Vegas Metropolitan Police Department Sheriff Kevin McMahill said at an afternoon press conference.

FBI special agent in charge Jeremy Schwartz later told reporters that it was not yet clear whether the blast was an act of terrorism.

“I know everybody’s interested in that word, and trying to see if we can say, ‘Hey, this is a terrorist attack.’ That is our goal, and that’s what we’re trying to do,” Mr. Schwartz said.

He added that the FBI had identified the person driving the vehicle, which had been rented in Colorado, but was not yet ready to publicly identify the driver.

Mr. Musk said the blast was unrelated to the Cybertruck itself.

“We have now confirmed that the explosion was caused by very large fireworks and/or a bomb carried in the bed of the rented Cybertruck and is unrelated to the vehicle itself,” Mr. Musk said in a post on X. “All vehicle telemetry was positive at the time of the explosion.”

Telemetry involves the automatic collection of data from remote sources, transmitting it back to a central source so it can later be analyzed.

A person was found dead inside the 2024 model-year Cybertruck and seven people sustained minor injuries from the explosion, Mr. McMahill said. He added that both the Cybertruck and the vehicle used in the New Orleans attack had been rented through car-sharing service Turo.

Mr. McMahill said the Cybertruck pulled up to the Trump building at 8:40 a.m. local time (1640 GMT). He said police were mindful of the New Orleans attack that occurred earlier on Wednesday. The FBI said a potential explosive device was found in the vehicle used in the New Orleans attack.

Las Vegas firefighters responded four minutes after the vehicle fire was reported and extinguished it. Two of the injured people were transported to hospitals with minor injuries. The Trump Hotel was evacuated after the incident and most of the visitors were moved to another hotel.

Eric Trump, executive vice president of the Trump Organization and a son of President-elect Trump, posted about the incident on X. “Earlier today, a reported electric vehicle fire occurred in the porte cochère of Trump Las Vegas,” he wrote, referring to the building’s covered entrance area. – Reuters

South Korea’s Choi orders immediate action on aircraft inspection as crash probe ramps up

January 2, 2025 | 9:57 am

SEOUL – South Korea’s acting President Choi Sang-mok said on Thursday immediate action must be taken if a special inspection of all Boeing 737-800 aircraft operated in the country finds any issues as authorities ramp up a probe into Sunday’s deadly air crash.

The conversion of data from the Jeju Air 7C2216 cockpit voice recorder to audio file should be completed by Friday, Mr. Choi told a disaster management meeting, which could provide critical information on the final minutes of the doomed flight.

All 175 passengers and four of six crew members were killed on Sunday when the Jeju Air jet belly-landed at Muan International Airport in the country’s southwest and slammed into an earth-and-concrete embankment, bursting into flames.

Two crew members, located near the tail of the Boeing 737-800, survived.

“As there’s great public concern about the same aircraft model involved in the accident, the transport ministry and relevant organizations must conduct a thorough inspection of operation maintenance, education, and training,” Mr. Choi said.

Mr. Choi’s comments at the start of the meeting were provided by his office.

Questions by air safety experts on what led to the deadly explosion have focused on the embankment designed to prop up navigation equipment that they said may have been built too close to the end of the runway.

The aircraft’s flight data recorder, which sustained some damage, is being taken to the United States for analysis in cooperation with the U.S. National Transportation Safety Board (NTSB).

Investigators from the NTSB, U.S. Federation Aviation Administration and the maker of the aircraft, Boeing BA.N, are in South Korea to help probe the worst air disaster in the country.

Choi asked no effort be spared in helping the families of the victims as the remains of those killed are handed over them. He also asked the police to take action against anyone posting “malicious” messages and fake news on social media related to the disaster. – Reuters

UK plans tough laws to fight people smugglers

January 2, 2025 | 9:55 am

LONDON – Suspected people smugglers will face severe curbs under new laws in Britain, the government said on Thursday, as it steps up efforts to fight illegal migration and strengthen border security.

Those suspected will face travel bans, social media blackouts and restrictions on phone usage to help the government “dismantle organized immigration crime networks,” the statement added.

“We will give law enforcement stronger powers they need to pursue and stop more of these vile gang networks,” interior minister Yvette Cooper said, describing border security as one of the foundations of the government’s recently laid out ‘plan for change‘.

Prime Minister Keir Starmer, elected to office in July, has prioritized tackling illegal migration by cracking down on the gangs who smuggle people across the English Channel, one of the world’s busiest shipping lanes, into Britain from France.

Over 36,800 people made the dangerous crossings to arrive in Britain in 2024, a 25% year-on-year surge, according to government data. Several dozen have died attempting to do so, with the Refugee Council charity terming it the deadliest year on record for such crossings.

The planned interim serious crime prevention orders (SCPO) will allow immediate action to disrupt and deter suspected serious criminality, including organized immigration crime, the statement said.

The fresh powers are designed to mirror those already used to disrupt other offences such as knife crime, slavery and trafficking.

Currently, securing an SCPO on suspects can be a complex and lengthy process. The interim orders will speed up the process. – Reuters

Palestinian Authority suspends broadcast of Qatar’s Al Jazeera TV temporarily

January 2, 2025 | 9:53 am

Source: https://1000logos.net/al-jazeera-logo/

CAIRO – The Palestinian Authority temporarily halted operations of Qatar’s Al Jazeera television in the territory including its broadcasts, citing the network’s dissemination of “inciting material,” the Palestinian news agency WAFA said on Wednesday.

The culture, interior and communications ministers made the decision jointly because the channel broadcast material that was “deceiving and stirring strife,” WAFA said without providing details on the subject matter.

The order said the decision was temporary but did not specify an end date.

The Palestinian Authority criticized Al Jazeera last week over its coverage of the weeks-long standoff between Palestinian security forces and militant fighters in the Jenin camp in the Israeli-occupied West Bank.

Al Jazeera denounced Wednesday’s decision as “an attempt to discourage it from reporting spiraling events in the occupied territories,” according to a statement.

It called on the Palestinian Authority to rescind the decision and allow its journalists to report freely from the West Bank without intimidation.

The decision was not expected to be implemented in Hamas-run Gaza where the Palestinian Authority does not exercise power.

Fatah, the faction that controls the Palestinian Authority, said the broadcaster was sowing division in “our Arab homeland in general and in Palestine in particular”. It encouraged Palestinians not to cooperate with the network.

The Israeli military in September raided Al Jazeera’s bureau in the West Bank city of Ramallah and ordered it shut.

Israel in May issued an order barring the channel from operating and broadcasting in the country, saying it posed a threat to Israeli security. A court subsequently upheld the ban. – Reuters

Israel strikes Gaza City suburb, Palestinian medics say

January 2, 2025 | 9:48 am

CAIRO – The Israeli military kept up the pressure on northern Gaza on Wednesday, striking in a suburb of Gaza City, medics said, and told residents in a central part of the enclave to evacuate from an area where militants were firing rockets.

Air strikes in Shejaia, a suburb of Gaza City, killed at least eight Palestinians, according to local emergency services. There was no immediate comment from the Israeli military, and it was not immediately clear who was killed in the attack.

In al-Buriej, in central Gaza, the Israeli military said it struck a militant operating in an area where rockets had been fired into Israel the previous day. Its Arabic spokesman had ordered people to leave the area before the strike.

The Palestinian news agency WAFA said two people were killed in that strike and 15 more in an airstrike in Jabalia. There was no immediate confirmation from Gaza health officials. Israel’s military said it killed Hamas fighters in the attack.

Much of the area around the northern towns of Beit Hanoun, Jabalia and Beit Lahiya has been cleared of people and razed, fueling speculation, which Israel denies, that it intends to keep the area as a buffer zone after the fighting in Gaza ends.

Israel says its almost three-month-old campaign in northern Gaza is aimed at preventing Hamas militants from regrouping. Its instructions to civilians to evacuate are meant to keep them out of harm’s way, the military says.

Palestinian and United Nations officials say no place is safe in Gaza and that evacuations worsen the humanitarian conditions of the population.

According to the Palestinian civil defense, more than 1,500 tents sheltering displaced people across Gaza were flooded by heavy rains over the past two days, leaving people exposed to the cold, their belongings damaged.

Israel’s campaign in Gaza has killed more than 45,500 Palestinians, according to health officials in the Hamas-run enclave. Most of Gaza’s 2.3 million people have been displaced and much of the tiny coastal strip is in ruins.

The war was triggered by Hamas’ Oct. 7, 2023, attack on Israel, in which 1,200 people were killed and another 251 taken hostage to Gaza, according to Israeli tallies. – Reuters

RRR cuts should be gradual — analysts

January 2, 2025 | 12:33 am

Peso-currency-Phl-flag — A Philippines peso note is seen in this picture illustration, June 2, 2017. — REUTERS/THOMAS WHITE/ILLUSTRATION

By Luisa Maria Jacinta C. Jocson, Reporter

FURTHER CUTS to banks’ reserve requirement ratio (RRR) should be gradual to avoid stoking inflation, analysts said.

“Reducing RRRs to minimal levels over time makes sense to align it with regional peers and make the banking system more competitive,” Nomura Global Markets Research analyst Euben Paracuelles said in an e-mail. “RRR is a tax on financial intermediation.”

“But I don’t think substantial RRR cuts should be rushed. BSP’s gradual approach is appropriate as it allows a recalibration that is consistent with prevailing economic conditions and the inflation outlook,” he added.

The Bangko Sentral ng Pilipinas (BSP) reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 7% from 9.5%, effective last October.

It also cut the RRR for digital banks by 200 bps to 4% and for thrift lenders by 100 bps to 1%. Rural and cooperative banks’ RRR was also slashed by 100 bps to 0%.

“We all need to realize that every reduction in the RR means injecting hundreds of billions of pesos to the system,” GlobalSource Partners country analyst Diwa C. Guinigundo, a former BSP deputy governor, said in a Viber message.

The RRR is the portion of reserves that banks must hold onto to ensure they can meet liabilities in case of sudden withdrawals. When a bank is required to hold a lower reserve ratio, it has more funds to lend to borrowers.

From a high of 20% in 2018, the central bank has since brought down reserve requirements to single-digit levels.

“All up, we are certain the BSP is more than aware of both the liquidity and inflationary implications of excess liquidity in the system which the BSP itself is regularly mopping up through its open market operations window,” Mr. Guinigundo said.

“While it is of secondary importance, there is always a cost to liquidity and inflation management,” he added.

BSP Governor Eli M. Remolona, Jr. has said they are looking to bring down big banks’ RRR to as low as zero before his term ends in 2029.

He earlier said the country’s reserve requirements are still among the highest in the region.

“The reduction in RR to almost zero is really meant to establish a level playing field between banks which are subject to mandatory RR and nonbanks which are not,” Mr. Guinigundo said.

He said the assumption is normally that banks are “always and forever liquid.”

“But liquidity could be a risk to banks especially when they are overextended. So, RR is really a regulatory assurance that when a liquidity crunch strikes the system, banks have somewhere to go and draw liquidity from.”

“Effective supervision of banks could indeed make RR superfluous, although this is not always the case even in more developed economies,” he added.

Analysts said further cuts to the RRR could also help prop up economic growth.

“The other side to RR reduction is the possible aim of BSP to further inject liquidity into the system, strengthen the credit transmission of monetary policy and stimulate economic activities,” Mr. Guinigundo said.

“The BSP could be aiming to help promote economic growth now that inflation seems to be behaving well recently.”

The Philippine economy grew by a weaker-than-expected 5.2% in the third quarter, slowing from the revised 6.4% growth in the second quarter and 6% a year ago.

This brought the nine-month gross domestic product average to 5.8%, slightly below the 6-6.5% full-year target.

Meanwhile, latest data from the local statistics agency showed inflation averaged 3.2% in the 11-month period, matching the BSP’s full-year inflation forecast and well within the 2-4% target.

“The key is to channel these liquidity injections from RRR cuts towards bank lending for productivity-enhancing investments such as infrastructure and agriculture modernization,” Mr. Paracuelles said.

“That would boost potential growth but also ease supply-side constraints and hence alleviate inflation pressures,” he added.

Nomura in a recent report said it expects the central bank to deliver a 200-bp cut to big lenders’ RRR by mid-2025. This would bring the ratio to 5%.

“From BSP’s perspective, these cuts are in line with its longer-term goal of reducing the RRR to single-digit levels and helping to further improve the transmission of its policy rate cuts at that point by boosting liquidity conditions,” it said.

Nomura noted the “quicker and more complete” transmission of the BSP’s tools and policies amid its structural reforms.

“The availability of these instruments has allowed BSP to resume RRR cuts… with an estimated liquidity injection of more than 1% of GDP and coinciding with BSP’s rate cuts, thus helping transmission further.”

In a separate report, the International Monetary Fund (IMF) said the reduction in RRR would lead to a “welcome decline in financial intermediation costs and better align reserve requirements with regional peers.”

“Changes in the reserve requirement ratio need to be factored into the overall monetary policy stance and coordinated with any changes in the size of the BSP balance sheet,” it added.