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Our handicapped United Nations

JONATHAN- ANSEL MOY DE VITRY-UNSPLASH

The United Nations was formally established in 1945 right after World War 2. Its main purpose, according to its charter, was to prevent war and provide peace and security for the world. Today, we have wars in Ukraine and the Palestinian territories. People are still dying from proxy warfare in Syria and Yemen. Russia, one of the permanent members of the UN Security Council, has attacked Ukraine. And Israel is supported by the United States in its genocidal vengeance against Hamas, which has resulted in over 30,000 Palestinian deaths, more than 70,000 injured, and millions of displaced civilians, half of them women and children.

China continues to claim sovereignty over the South China Sea, including parts confirmed by the United Nations Arbitral ruling as belonging to the Philippines and other Southeast Asian countries. China has even destroyed corals and converted many islets into military bases; and constantly terrorizes Filipino fishermen who try to fish in their own country’s waters. Chinese ships have even aimed water cannons at ships of the Philippine Coast Guard. Meanwhile, the UN Arbitral Courts are unable to enforce their judgment. After all, China is a permanent member of the UN Security Council and has veto power which needs at least two thirds vote of the General Assembly to be overturned.

Antonio Guterres, the Secretary-General of the United Nations has condemned the genocidal actions of Israel against the Palestinians, and criticized Russia’s war against Ukraine which he asserts is an independent nation. But he is unable to do more than criticize as the UN does not have the power to enforce its mandates.

There are 15 members of the UN Security Council. Five of these are permanent members (China, France, Russia, the UK, and the United States) all of which are nuclear weapons states. These five countries are among the Allies which won the Second World War. Japan and Germany, losers in that war, are not members. Ten Security Council members are elected for two-year terms by the General Assembly. Almost all countries in the world are now members of the United Nations, and are represented in the General Assembly.

Resolutions passed by the General Assembly, such as those advocating a permanent ceasefire in the Gaza strip and the West Bank, have been vetoed in the Security Council by the United States which, ironically, is negotiating with Israel for a pause in the fighting to enable aid to be distributed to the millions of Palestinian refugees. The US is also providing aid to Palestinian refugees, lately via air drops. Meanwhile, the US has been providing arms to Israel. US diplomats have also questioned the proceedings in the International Court of Justice in The Hague, claiming that these are making their negotiations with Israel and Hamas difficult. The US’ contradictory positions are confusing. But the UN leadership, which should be the negotiator, is unable to assert its own positions.

Clearly, there is enough reason to call for radical reforms in the UN Charter.

The members of the General Assembly should mobilize for these reforms. There is an opportunity for leaders of ASEAN Nations to call for such reforms and to campaign with fellow developing regions such as the Arab League, Latin American and African Nations to agitate for such reforms since the UN charter is being violated. The Third World countries which are affected by these conflicts have been too quiet. The General Assembly has not, so far, called for such reforms.

The incoming president of Indonesia, Prabowo Subianto, has declared his intention to have an aggressive foreign policy. Perhaps President Ferdinand Marcos, Jr. should get together with him and initiate thinking on such reforms and how to mobilize support from ASEAN members and other developing nations’ regional organizations.

The call for radical reforms will begin modestly, perhaps, but perseverance can lead to some consciousness on the ineffectiveness of the UN to carry out its main purposes. It will help if at least some noise causes some shaking up, for a start.

There is no question that the United Nations has created, and manages, institutions that make life a little better for citizens of the least developed and least democratic nations of the world: The World Health Organization (WHO), the World Food Program, the International Labor Organization (ILO), the Food and Agriculture Organization (FAO), and the UN Development Program (UNDP). The United Nations Economic and Social Council (ECOSOC) and its units mobilize and monitor compliance with the Millennium Development Goals (MDGs) and now the Sustainable Development Goals (SDGs.) The United Nations Relief and Works Agency (UNRWA), now accused by Israel of having militaristic elements, has lost funding support from Germany with its support for Israel, perhaps because of its holocaust guilt. It continues to provide aid to the Palestinian refugees with what funding it still has. The programs and funds are financed through voluntary rather than assessed contributions.

But it is time, as we face serious threats once more to world peace and security, to question the inability of the UN to enforce its mandates against violations of its charter. The General Assembly must advocate for more power, and for a serious review of the veto power of the permanent members who are currently key actors in the threats to world peace and security.

Philippine foreign policy of course, is constrained by its need to side with US positions on global political issues since it is dependent on the US’ open support in its problems with aggression from China — which has veto power in the UN Security Council. It must therefore work within the context of ASEAN.

Perhaps former third world nations such as now prosperous Japan and South Korea can provide funding which is a source of power within the United Nations. The Third World must wake up.

 

Teresa S. Abesamis is a former professor at the Asian Institute of Management and fellow of the Development Academy of the Philippines.

tsabesamis0114@yahoo.com

February rice inflation surges to 15-year high

HEADLINE INFLATION accelerated for the first time in five months in February as prices of food, particularly rice, rose faster than expected, according to preliminary data from the Philippine Statistics Authority (PSA). Read the full story.

February rice inflation surges to 15-year high

BSP looks to tighten MSB reporting standards to boost risk monitoring

THE BANGKO SENTRAL ng Pilipinas (BSP) is looking to tighten its reporting standards for money service businesses (MSBs) to boost monitoring of risks in the sector.

A draft circular posted on its website showed the BSP wants to amend the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) “to enhance and provide structure to the regulatory standards for MSBs.”

The proposed amendments cover the reporting governance framework for MSBs.

“The amendments to the relevant sections of the MORNBFI set forth the Bangko Sentral’s initiative to enhance regulatory and supervisory activities over MSBs to ensure that attendant risks remain manageable as the industry continually evolves and business models become increasingly complex amidst emergence of new players in remittance and breakthrough financial technology,” the BSP said.

“They further the fulfillment of the Bangko Sentral’s international obligations and political commitment to strengthen its Anti-Money Laundering and Combating the Financing of Terrorism regimes,” it added.

The draft circular introduces provisions on MSBs’ risk monitoring and reporting.

“MSBs shall ensure that sufficient mechanisms are in place to monitor reputational risk across different business lines and functions. This enables the board or proprietor and management to address any significant issues and developments,” the central bank said in the circular.

It cited measures such as early warning systems to help detect and control risks.

“Sample early warning indicators include volume of complaints, number of negative news on the institution, number of violations of laws/regulations/codes of conduct with material penalties or sanctions for noncompliance,” it added.

MSBs are also tasked to notify the BSP of events which may have a “significant impact on their business or reputation and/or is likely to lead to a crisis,” such as cyber-related incidents, disruptions of financial services, liquidity ratios falling below the minimum, among others.

The BSP added that MSBs must employ an “effective” reporting system.

This is composed of a management information system; policies and procedures on the MSBs’ standards; periodic independent reviews of reporting procedures; and timely reporting to the board or proprietor and senior management.

It also revises the sanctions imposed on MSBs that do not comply with the BSP’s reporting standards, namely erroneous reports, delayed reports, and unsubmitted reports.

Under the draft rules, penalties range from P150 to P1,350 depending on the violation.

Fines for erroneous reports will be prescribed based on each occurrence while fines for delayed or unsubmitted reports will be based on each day it accumulates.

Previously, the penalty was set at P60 for each occurrence of an erroneous report or each day of a delayed or unsubmitted report.

MSBs are also required to conform to Philippine financial reporting and accounting standards, as well as adopt the Manual of Accounts under the Financial Reporting Package for MSBs for prudential reporting purposes.

The guidelines on the reporting of crimes and losses were also increased so that the amount involved per incident would start at P100,000 from P20,000 previously for incidents involving material loss, destruction or damage to the MSB’s property/facilities, other than arising from a crime.

If the draft circular is approved, MSBs will have one year from its effectivity to comply with the amended regulations.

The BSP is accepting comments on the draft circular until March 15. — Luisa Maria Jacinta C. Jocson

A new tool to aid the enforcement of intellectual property rights in the e-commerce space

SNOWING-FREEPIK

From Jan. 1 to Dec. 1, 2023, the Bureau of Customs (BoC) seized over P24.36 billion worth of smuggled counterfeit foods, up from P20 billion in the previous year.1 This indicates that the counterfeit goods market in the Philippines remains to be a pressing problem demanding the attention and best efforts of law enforcement.

Much attention has been given to the Greenhills Shopping Center, which is the only physical market in the Philippines cited in the “2023 Review of Notorious Markets for Counterfeiting and Piracy” of the United States Trade Representative (USTR)2, first appearing in the 2018 iteration and retaining its place ever since. In fact, the Intellectual Property Office of the Philippines (IPOPHL), acknowledging this fact, recently issued a statement reiterating that Greenhills remains a priority in its bid to clear the markets of counterfeit goods.3

The 2023 Review also highlights a vast array of online markets, including Singapore-based e-marketplace platform Shopee.4 This renewed focus on online markets is a response to the rise in their popularity throughout the years. Although online e-commerce platforms house a substantial number of verified sellers and legitimate goods, ranging from small entrepreneurs and businesses to worldwide household-name brands, some of them are also known to house, to varying degrees, an assortment of counterfeit goods.

In recognition of this, there have been commendable efforts from the IPOPHL and relevant stakeholders in curbing counterfeiting in the e-commerce space. In 2021, both Shopee and fellow e-commerce platform Lazada signed a memorandum of understanding (MoU) with several rights holders, establishing “a code of practice among online marketplaces” and “an efficient notice and takedown procedure” to aid the fight against counterfeit goods sold online.5 Speaking to their achievements in light of this MoU, in 2022 Shopee and Lazada both reported massive increases in listings removed from their platforms for counterfeiting, and the implementation of renewed IP rights campaigns and legitimate product guarantees.6

Recent legislation represents another helpful tool to aid in this fight, this time on the enforcement side.

On Dec. 5, 2023, Republic Act No. 11967, or the “Internet Transactions Act of 2023,” was signed into law, providing for the regulation of e-commerce to, among other things, protect consumer rights and uphold intellectual property rights.7 To this end, e-commerce merchants who are determined to have established “minimum contacts” in the Philippines may now be subject to Philippine laws and regulations despite not having a legal presence in the country.8 This brand-new law adds to the ever-growing list of applicable local laws for online transactions, a list which already includes R.A. No. 7394 (the Consumer Act of the Philippines), R.A. No. 8792 (the Electronic Commerce Act), R.A. No. 10173 (the Data Privacy Act of 2012), and R.A. No. 10175 (the Cybercrime Prevention Act of 2012).

This now makes potential sanctions and penalties under Philippine Intellectual Property laws possible for e-commerce merchants who sell their goods on the Philippine market. This development may also indirectly aid in the overhaul of Greenhills, as suppliers of merchants therein who transact primarily online may withdraw under threat of penalties.

It bears stressing the adverse effect that counterfeit goods have on the economy: they discourage innovation and product development, scare away potential foreign investment, and eat into the sales of legitimate manufacturers. It is hoped that with the applicability of Philippine laws to e-commerce merchants no longer in doubt, along with the combined efforts of the IPOPHL, law enforcement and the e-commerce marketplaces themselves, the enforcement of intellectual property rights in the e-commerce space continues to take steps forward.

1 Louisse Maureen Simeon, 2023. “Fake foods remain Philippines top smuggled item,” https://www.philstar.com/headlines/2023/12/08/2317268/fake-goods-remain-philippines-top-smuggled-item.

2 United States Trade Representative, 2023 Review of Notorious Markets for Counterfeiting and Piracy, at 49-50, https://ustr.gov/sites/default/files/2023_Review_of_Notorious_Markets_for_Counterfeiting_and_Piracy_Notorious_Markets_List_final.pdf.

3 Intellectual Property Office of the Philippines (2024), “Statement of IPOPHL on the USTR Notorious Markets Report: Greenhills Shopping Center,” https://www.ipophil.gov.ph/news/statement-of-ipophl-on-the-ustr-notorious-markets-report-greenhills-shopping-center/.

4 United States Trade Representative, 2023 Review of Notorious Markets for Counterfeiting and Piracy, Id., at 31.

5 Intellectual Property Office of the Philippines (2021), “Lazada, Shopee and IP right holders band together in fight vs. rising online counterfeiting, piracy,” https://www.ipophil.gov.ph/news/lazada-shopee-and-ip-right-holders-band-together-in-fight-vs-rising-online-counterfeiting-piracy/.

6 Intellectual Property Office of the Philippines (2022), “E-commerce MoU drives heightened takedown efforts against counterfeiting, piracy,” https://www.ipophil.gov.ph/news/e-commerce-code-of-practice-drives-heightened-takedown-efforts-against-online-counterfeiting-piracy/.

7 Republic Act No. 11967, Section 2.

8 Republic Act No. 11967, Section 5. (R.A. No. 11967 does not provide a definition or standard for what constitutes “minimum contacts.” As of the date of writing, the Implementing Rules and Regulations (IRR) for R.A. No. 11967 have not been released, therefore it remains to be seen what standard will be provided, if any.)

This article is for general informational and educational purposes only, and is not offered as, and does not constitute, legal advice or legal opinion.

 

Luis Alfonso F. Manlangit is an associate of the Intellectual Property Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

lfmanlangit@accralaw.com

+632-8830-8000

Startup Olympian Motors making minimalist EVs for drivers sick of screens

OLYMPIANMOTORS.COM

WHEN Eren Canarslan, the co-founder and chief executive officer of Olympian Motors, removes the car cover from one of his company’s prototypes on a rainy fall day in Brooklyn, the most striking first impression is that it’s, well, cute. The two-door coupe, dubbed the Model 01, has distinctly vintage vibes, with smooth curved lines, swoopy Art Deco finishes and a front end so friendly it seems to smile. It looks more like a set piece from a classic movie than a car you’d take to the McDonald’s Drive Thru.

In an automobile landscape where cars seem to grow ever larger and more visually aggressive, Olympian, whose first vehicles are now available for pre-order, is leaning heavily in the opposite direction. Its cars are designed not to intimidate but to delight, and the company is hoping to both rebrand luxury for drivers and produce an electric vehicle (EV) that can turn a profit.

“For us, climate is luxury. For us, silence is luxury,” Mr. Canarslan says. “Luxury means a company that respects the environment. Luxury means a company that is respectful to the city.”

Founded in 2021, Olympian Motors is the outgrowth of an idea Mr. Canarslan developed with his fellow co-founder, Jasmine Sungu. The two connected in 2019 over a shared belief that traditional automakers were trapped in century-old thinking that was increasingly disconnected from intuitive design and customers’ actual needs. While car reviews are often dominated by horsepower, torque and acceleration speed, Olympian’s surveys of roughly 2,000 people across the US found that only a small percentage actually cared about those things.

“They said that as long as the performance is within the industry average, we’re good,” Ms. Sungu says.

What consumers did crave was comfort and simplicity, and a car both technologically advanced and aesthetically pleasing. So the duo decided to focus their designs on vehicles for ordinary people, not gearheads. Olympian’s Model 01 and its Model 84, which looks like a road-ready dune buggy, are the company’s first attempts.

Both the Model 01 and the Model 84 will come in two- and four-door versions, with ranges and battery capacities that are on par with much of their electric-car competition. But unlike many other EVs, which tend to have souped-up touch screens that span the entirety of their dashboards, the Model 01 and Model 84 have none.

Instead, Olympian leans into old-school controls: numbered dials for the speedometer, tachometer and battery indicator, plus a single knob for climate control. (Drivers will be able to connect their smartphone to the car for functions like streaming music and a backup camera.) The company says its cars have 80% fewer buttons and switches than a typical driver’s cockpit.

“Often when I’m driving, I’m not looking at the road. I’m looking at the screen and it’s distracting,” says Mr. Canarslan, who notes that respondents to the company’s surveys said that after a long day they’re often sick of staring at screens.

Next year, the company is hoping to roll out an augmented-reality windshield display that would provide turn-by-turn directions while letting the driver keep their eyes on the road.

The dashboard doesn’t only stand out for its lack of center-console touchscreens; it’s also made of wood. Olympian says its wood suppliers are all certified by either the Forest Stewardship Council, the Programme for the Endorsement of Forest Certification or both.

“One of Olympian’s values is we want to bring back the pleasure of driving,” Ms. Sungu says. “When you’re surrounded by plastic and unnatural materials, you actually biologically can’t relax.”

To maintain its aesthetics while streamlining manufacturing, Olympian uses a modular approach that it says reduces tooling, machinery and labor costs by 75-80% and production lead time by 60% compared to the construction-line approach of legacy US automakers. This Lego-like method simplifies manufacturing to a combination of components — platform chassis, battery, windshield, etc. While most car companies do this to some extent, the approach is suited to EVs, which have fewer moving parts. Olympian says the final assembly process that it handles only comprises about 30 pieces, with plenty of redundancy. (The Model 01 and Model 84 share a platform chassis, for example.) To offer a variety of colors, the company will rely on pre-painted panels.

While the modular approach is well-suited to quickly starting and scaling a car company, it presents its own challenges. For one, suppliers often prioritize larger auto companies with bigger orders. “If GM signs a partnership with LG, LG is going to be producing for GM first,” says BloombergNEF analyst Corey Cantor. “Only after GM are they willing to be free players.”

For now, Olympian’s anticipated production capacity is nowhere near that of its competition. The company says it has received more than 350 pre-orders from US customers (including a refundable $500 deposit) for the Model 01; to hit positive cash flow Mr. Canarslan says they would need to sell 200 cars per year. Tesla, by comparison, delivered 485,000 EVs in the fourth quarter alone, and even EV upstart Rivian made 57,000 cars in 2023.

The Model 01 isn’t cheap, either: Both the two- and four-door models will go on sale for $80,000, on par with a Tesla Model X and a touch above the cost of a Mercedes EQE SUV.

“That’s a higher-end market,” Mr. Cantor says.

The tension between a car’s cost and its capabilities — and carmakers’ ability to scale production — has taken center stage in the EV transition. After soaring by 62% in 2022 and 31% last year, global EV sales growth is expected to slow to 21% this year, according to BloombergNEF. Ford, General Motors and Volkswagen have all trimmed output of electric models or walked back production goals. Consumers, meanwhile, are contending with a dearth of affordable options as automakers prioritize higher-priced cars. Olympian joins a slate of domestic EV startups, including Rivian and Lucid, that are still struggling to reach profitability.

“If you’re competing with the big guys, there’s a real challenge for startups,” Mr.  Cantor says. “If you’re GM, you can sell more gas cars to fund the transition. If you’re a startup, it’s sink or swim based on your product. So from that standpoint, I think a lot of the startups that are around now won’t necessarily be here in 10 years.”

In 2021, Olympian received $125,000 in seed-stage funding from Y Combinator and participated in its startup accelerator program, which helped launch companies like DoorDash and Airbnb. It has since gone through three funding rounds, the last in 2023. Mr. Canarslan says the company can stand out on its customization and driver experience. “Some people pay $200,000 for a Porsche,” he says. “We want to be more affordable high-end.”

EV growing pains notwithstanding, transitioning from internal combustion to electric drivetrains is essential for reaching net zero: Transportation accounts for 24% of total carbon emissions, according to the International Energy Agency, and road vehicles are responsible for 70% of that. But research shows that, ideally, there should also be a reduction in the overall number of cars on the road and miles driven.

In that sense, Brooklyn is an interesting place to headquarter an EV startup, as New York City has some of the best mass transit in the US. Olympian’s location is in part a historical nod: A century ago, the city was a hub of custom car manufacturing, including electric vehicles. The Brooklyn Navy Yard, where Olympian is located, is also home to a number of green startups, and Olympian is betting that even NYC has a need for light, stylish electric cars. Ms. Sungu points to the rollout of curbside charging across the five boroughs.

“Yes, they want to increase foot traffic and reduce the footprint of congestion cars,” she says. “But I think there’s still room for us to play in cities.” — Bloomberg News

Uncle of Kate Princess of Wales joins UK TV show Big Brother

LONDON — The uncle of Kate, Britain’s Princess of Wales, joined reality TV show Celebrity Big Brother on Monday, offering millions of viewers the tantalizing prospect that he could gossip about the British royal family to his house mates.

Gary Goldsmith, aged 58, is the younger brother of Kate’s mother, Carole Middleton. He was a guest at Kate’s wedding to William, the heir to the throne, in 2011.

His appearance on the show comes at a testing time for the royals after King Charles was diagnosed with cancer and Kate has been absent from public life while she recovers from abdominal surgery in January.

Goldsmith said in the show that Kate was “simply perfect.”

“The first time I met William, Catherine was cooking and William said ‘Hi, do you want a cup of tea’,” he said. “Very normal.”

The businessman, who made a fortune in IT recruitment, said he wanted to “put the record straight” about his bad boy reputation.

But added: “Winding people up is probably my favorite hobby.

“I’m an absolute nightmare to live with; there’s a reason why I’ve had four wives,” he added.

In 2017 Goldsmith was fined after he assaulted his fourth wife, Julie-Ann, in a drunken argument.

He joined 11 other celebrities including reality TV judge and music manager Louis Walsh and TV presenter Fern Britton in the Big Brother house, where they are constantly filmed.

Celebrity Big Brother has been revived by broadcaster ITV six years after it last aired on rival Channel 5. — Reuters

SEC adopts sustainable finance taxonomy guidelines

THE Securities and Exchange Commission (SEC) has adopted the Sustainable Finance Taxonomy Guidelines (SFTG) to promote environmentally and socially sustainable economic activities.

In a statement on Tuesday, the corporate regulator announced the issuance of Memorandum Circular No. 5 on Feb. 23, outlining the guidelines on Philippine Sustainable Finance Taxonomy. The SFTG provides a framework for assessing the environmental and social sustainability of economic activities.

“Issuers of securities shall refer to the SFTG when making investment decisions or designing sustainable financial products and services, among others. They must also comply with the relevant memorandum circulars issued by the SEC when issuing green, social, sustainability, and sustainability-linked bonds,” the SEC said.

The SFTG offers a “simplified approach” on the assessment of micro, small, and medium enterprises (MSMEs) activity for financing, the commission said.

The rules also ensure that MSMEs are not excluded from participating in “sustainable finance.”

“With the Philippine SFTG in place, we hope to channel and amplify more capital toward economic projects that further sustainability goals such as lowering greenhouse gas emissions and bolstering climate resilience, while fostering transparency by reducing the likelihood of greenwashing,” SEC Chairperson Emilio B. Aquino said.

Financing of economic activities is deemed environmentally or socially sustainable and aligned with the SFTG if these are not mentioned in the list of excluded activities. Excluded activities include gambling, lethal defense goods, conflict minerals, extractive mining, and military contracting.

Issuers will then choose the environmental objective (EO) of the activity such as its relevance and strategic alignment, investors or financial institutions’ priority, and government and industry guidance.

“Focusing on an EO should not significantly harm other EOs. Should there be harm, the issuer should verify that the same has been remediated or will be remediated within the required defined period,” the guidelines said.

“Regulated entities should refer to the general guiding questions for the do no significant harm (DNSH) to focus assessment on the potential or actual harm to another EO,” it added.

Following the assessment process, economic activities could be classified as green or those with “substantial contribution” to an EO; amber or those with substantial contribution to an EO but causes harm to another, but which can be remediated within five years, or there is a reliable claim that remediation will take less than 10 years; and red, or those that do not meet the criteria.

“An activity that falls under the Red classification does not meet the higher sustainability ambition of the SFTG or pass the DNSH or minimum social safeguards tests. The classification, however, does not imply that the activity is unsustainable; such an activity may still be eligible for unlabeled financing,” the guidelines said. — Revin Mikhael D. Ochave

RCBC updates sustainable finance framework to align with int’l rules

PHILSTAR FILE PHOTO

RIZAL COMMERCIAL Banking Corp. (RCBC) has amended its sustainable finance framework to align with the updated principles of offshore bond associations, it said on Tuesday.

The lender updated its guidelines to align with the International Capital Market Association’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines and with the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association’s Green Loan and Social Loan Principles, the Yuchengco-led bank said in a statement.

“We remain to be a catalyst for positive change through responsible finance which can help contribute to the protection and restoration of our planet’s invaluable ecosystems. The amended framework also reinforces our support in addressing societal needs toward sustainable development,” RCBC President and Chief Executive Officer Eugene S. Acevedo said.

RCBC expanded its eligibility criteria for social projects, and for green projects to include a subset of blue projects.

The amendments are also in line with the Securities and Exchange Commission’s Guidelines on Eligible Blue Projects and the International Finance Corp.’s Guidelines for Blue Finance.

Sumitomo Mitsui Banking Corp. Singapore Sustainability Solutions Group Asia Pacific advised RCBC in the amendment of its framework. Sustainalytics also issued a second party opinion for the amendments to ensure they are in line with principles and market practices.

“RCBC publishes the annual limited assurance allocation report and impact report on its website in line with the disclosure requirements of the framework,” the lender said.

“The bank’s Sustainable Finance Framework remains aligned with the four pillars of sustainable finance: use of proceeds, project evaluation and selection, management of proceeds, and reporting,” RCBC added.

The bank in January raised $400 million from its offer of five-year senior unsecured sustainability notes due 2024 that marked its return to the overseas debt market after over three years.

The issuance was almost six times oversubscribed, with orders reaching $2.3 billion coming from more than 164 accounts. The bonds fetched a coupon rate of 5.5% per annum.

RCBC financed over 8,200 projects under eligible green and eligible social categories in 2022 amounting P71.2 billion, it said.

The bank’s attributable net income rose by 1.14% to P12.218 billion last year amid higher loans and deposits.

RCBC’s shares went down by 50 centavos or 2.27% to close at P21.50 each on Tuesday. — A.M.C. Sy

How much did each commodity group contribute to February inflation?

HEADLINE INFLATION accelerated for the first time in five months in February as prices of food, particularly rice, rose faster than expected, according to preliminary data from the Philippine Statistics Authority (PSA). Read the full story.

How much did each commodity group contribute to February inflation?

How PSEi member stocks performed — March 5, 2024

Here’s a quick glance at how PSEi stocks fared on Tuesday, March 5, 2024.


Shares close lower as inflation picks up in Feb.

BW FILE PHOTO

PHILIPPINE SHARES closed in the red on Tuesday due to data showing that headline inflation quickened in February.

The bellwether Philippine Stock Exchange index declined by 0.66% or 46.21 points to end at 6,905.46 on Tuesday, while the broader all shares index dropped by 0.4% or 14.68 points to close at 3,604.27.

“This Tuesday, the local market dropped by 46.21 points (-0.66%) to 6,905.46 as investors digested the inflation data for February… This also broke the four-month declining trend of inflation,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“Philippine shares continued to succumb to profit taking, as the latest consumer price index ticked higher than many analysts’ forecasts,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

Headline inflation accelerated to 3.4% in February from 2.8% in January, the Philippine Statistics Authority reported on Tuesday. Still, the consumer price index (CPI) was slower than the 8.6% print in the same month a year ago.

Last month’s inflation print was above the 3% median estimate in a BusinessWorld poll of 16 analysts conducted last week, but was within the Bangko Sentral ng Pilipinas’ (BSP) 2.8-3.6% forecast for the month.

This also marked the first time that headline inflation picked up month on month since September 2023.

For the first two months, the CPI averaged 3.1%, within the BSP’s 2-4% annual target.

“Wall Street’s decline overnight spilled over to the bourse as well amid profit taking after the S&P 500 and Nasdaq reached record highs last week,” Mr. Plopenio added.

Wall Street stocks closed lower on Monday, backing away from record highs, while US Treasury yields ticked higher as investors looked ahead to key jobs data and Federal Reserve Chair Jerome H. Powell’s congressional testimony later in the week, Reuters reported.

The Dow Jones Industrial Average fell 97.55 points or 0.25% to 38,989.83; the S&P 500 lost 6.13 points or 0.12% to 5,130.95; and the Nasdaq Composite dropped 67.43 points or 0.41% to 16,207.51.

Back home, majority of the sectoral indices ended lower on Tuesday. Financials fell by 1.56% or 31.56 points to 1,990.60; industrials went down by 1.47% or 138.07 points to 9,195.60; property retreated by 1.08% or 31.69 points to 2,883.25; and services dropped by 0.89% or 15.98 points to 1,771.96.

On the other hand, holding firms rose by 0.96% or 62.83 points to 6,568.35, and mining and oil improved by 0.004% or 0.30 point to 8,547.26.

Value turnover dropped to P5.37 billion on Tuesday with 425.75 million issues switching hands from P5.64 billion with 530.17 million shares traded the prior day.

Decliners beat advancers, 113 against 77, while 50 issues closed unchanged.

Net foreign buying fell to P308.84 million on Tuesday from P799.61 million on Monday. — R.M.D. Ochave with Reuters

Peso inches up vs dollar

BW FILE PHOTO

THE PESO inched higher against the dollar on Tuesday amid expectations of weaker US jobs and manufacturing data.

The local unit closed at P55.95 per dollar on Tuesday, rising by two centavos from its P55.97 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s session weaker at P56 against the dollar. Its worst showing was at P56.04, while its intraday best was its closing level of P55.95 versus the greenback.

Dollars exchanged went up to $821.65 million on Tuesday from $768.2 million on Monday.

“The peso strengthened ahead of a potentially weaker US services PMI (purchasing managers’ index) report,” a trader said in an e-mail.

The peso gained as the dollar moved sideways on expectations of softer US jobs data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

He said weak employment data could justify future rate cuts by the US Federal Reserve.

The Fed raised borrowing costs by 525 basis points from March 2022 to July 2023 to the 5.25-5.5% range.

For Wednesday, the trader said the peso could weaken against the dollar amid market caution ahead of Fed Chair Jerome H. Powell’s semi-annual US Congressional testimony.

The trader sees the peso moving between P55.85 and P56.10 per dollar on Wednesday, while Mr. Ricafort expects it to range from P55.85 to P56.05.

Meanwhile, the dollar was steady against the yuan on Tuesday as markets digested policy statements out of China that were short on big stimulus measures, while a rebound in Tokyo inflation seemed to take Japan a step closer to the end of negative interest rates, Reuters reported.

Spot yuan opened at 7.1950 per dollar and was changing hands at 7.1985, while the offshore yuan was little changed at $7.2100 as markets hoped more concrete stimulus measures would emerge.

The dollar was last at 150.44 yen, having again shied away from resistance around 150.85, which has capped the currency for more than three months now.

A break higher would open the way to November’s top at 151.92, but would also run the risk of provoking Japanese intervention.

The dollar index, which measures the currency against six major peers, edged higher to 103.87. — AMCS with Reuters