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Protecting COP10 from tobacco industry interference

SHAUN MEINTJES-UNSPLASH

The 10th meeting of the Conference of the Parties to the World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC), or COP10, will take place from Feb. 5 to 10 in Panama City this year.

COP, which holds regular sessions every two years, provides a platform for 182 member countries, including the Philippines, to discuss the implementation of the WHO FCTC, the world’s first modern-day global public health treaty and the first treaty negotiated by the WHO.

However, the tobacco industry seems to be using the forthcoming COP as a battleground for its offensive. Pro-vape groups have not been hiding their desire to participate in the COP, ostensibly in the name of “harm reduction.”

According to a Guardian article from Oct. 12, 2023, a leaked e-mail from Philip Morris International (PMI) senior vice-president for external affairs Grégoire Verdeaux revealed the tobacco industry’s campaign to intervene at COP10 to prevent countries from strictly regulating heated tobacco products (HTPs) and electronic cigarettes.

The leaked e-mail instructed staff to find “any connection, any lead, whether political or technical” to the COP, urging its agents in “every country, regardless of its size” to carry out their campaign. Verdeaux, who did not deny the veracity of his message when asked for a statement, called the COP10 agenda “nothing short of a systematic, methodical, prohibitionist attack on smoke-free products.” He also called the exclusion of tobacco companies from the public health event “absurd,” claiming that PMI was “undoubtedly the most helpful private partner WHO could have in the fight against smoking.”

Meanwhile, in the Philippines, it has come to light that one of the members of the country’s delegation to COP10 is SAGIP Party-list Representative Rodante Marcoleta, one of the primary sponsors of Republic Act 11900, the deregulatory Vape Law which made e-cigarettes and HTPs more accessible to the youth by lowering the age of access from 21 to 18 years old.

Civil society is concerned that the presence of industry-linked COP10 delegates could jeopardize the tobacco control policies of the government. The Philippines, which ratified the WHO FCTC in 2005, has passed monumental policies, including the Graphic Health Warnings Law and several laws increasing tax rates on tobacco, e-cigarettes, and HTPs, cementing our place as a global leader in tobacco control. Given the gravity of the COP10’s forthcoming discussions on regulation of e-cigarettes and HTPs, delegates representing the Philippines should be committed, not only to public health, but to protecting the Philippines from the damage to our international reputation that could arise from further loosening regulation of these products or even becoming a purveyor of these harmful products.

Globally, tobacco industry interference has been worsening. According to the Global Tobacco Industry Interference Index 2023 by the Global Center for Good Governance in Tobacco, the tobacco industry has recovered rapidly post-pandemic and has stepped up its interference by signing more agreements with government offices and engaging in diplomatic missions.

In the Philippine context, since the 2022 elections, there has been a series of events and interactions involving the tobacco industry which call to mind the question: how does the tobacco industry engage national government? Further: is their goal to roll back tobacco taxes?

Just a few months into the Marcos administration, on Nov. 24, 2022, President Ferdinand Marcos, Jr. and the First Lady hosted a luncheon with officials from Philip Morris International in Malacañang, posting their photo on the First Lady’s Facebook page. It is worth noting that the president hails from Ilocos Norte, a tobacco-producing province.

On Aug. 2, 2023, the Department of Trade and Industry (DTI) released a statement encouraging manufacturers to make the Philippines a manufacturing hub for e-cigarettes and HTPs and welcoming PMI’s investment to build a modern HTP factory in Batangas worth P9 billion. The Department of Health (DoH) cautioned against this, noting that the “economic burden resulting from premature sickness and deaths [due to the use of e-cigarettes and HTPs] outweigh the potential economic gains from investing in these industries.”

The industry narrative in recent years has been focused on the argument that illicit tobacco trade will worsen if tobacco taxes are increased. Japan Tobacco International (JTI) has partnered with Economist Impact to legitimize its participation in policy discourse on tobacco taxes, as seen in its Global Anti-Illicit Trade Summit in Shangri-La The Fort in May 2023, which likewise took place in different cities across the world.

JTI has noted: “With higher taxes, however, the government risks losing revenue as legal products become unaffordable, leading to unintended consequences such as a corresponding surge in illegal trade.”

These industry arguments are echoed even in the academe. The University of Asia & the Pacific, with the Federation of Philippine Industries (FPI), published a study entitled “Illicit Cigarette Trade in the Philippines: Economic and Social Impacts of Weak Regulatory Enforcement” in October 2023. The study found that “There is a direct correlation between the imposition of new taxes and the rise of illicit trade,” adding that the government must leave no stone unturned “to provide legitimate industry players with a level playing field and to preserve consumer rights.” However, it must be noted that the tobacco industry, notably JTI, has published FPI’s position on tobacco smuggling on its website, suggesting a possible conflict of interest.

Further, independent studies, both global and local, have long proven that there is no evidence on causality that shows illicit trade being driven by higher tobacco taxes. A 2020 gap analysis study by Lavares, Francisco, Ross, and Doytch, published by the Ateneo School of Government, concluded that: “In spite of the large tax increases by the Philippine government through the Sin Tax Law starting from 2013 until 2018, the illicit share in 2018 remains similar to its 1998 level of 16% of the total market. Hence, our study finds no evidence of a positive relationship between tobacco taxes and the size of the illicit cigarette market in the Philippines.”

The industry has been building up its arguments against tobacco taxes, which again begs the question: Are there possible intentions to roll back these taxes?

The industry’s public message is that their goal is to eliminate illicit tobacco trade to recoup government revenues.

Illicit tobacco trade is indeed a serious threat, both to public health and public finances. However, if the industry’s goal is to prevent government revenue leakages, rolling back tobacco taxes will be a most inefficient and counterintuitive strategy. Sin taxes have proven to be a significant source of revenue for Universal Health Care, promoting public health, and addressing the negative impacts of tobacco use. Tobacco taxes have been associated with a sharp decrease in the number of Filipino adult smokers.

If the tobacco industry is genuine in its campaign against illicit tobacco trade, it should support effective governance measures, rather than opposing revenue-raising policies like tobacco taxes. The Anti Agricultural Smuggling Bill, or Senate Bill 2432, which has been approved in both Houses of Congress and is awaiting a bicameral committee meeting, has garnered public support from the tobacco industry through statements and appearances in hearings. However, upon scrutiny and consideration of its potential impact, the bill, which simply raises penalties on tobacco smugglers, will be insufficient to increase the likelihood of apprehension. A more holistic approach, which includes the integration of a track and trace system for tobacco and stronger coordination with local governments, is needed to reduce illicit tobacco trade in the country.

It is crucial for policymakers, public health advocates, and the Filipino public to remain vigilant against tobacco industry tactics. Through an intricate and sophisticated media campaign promoting “smokeless” products, the tobacco industry is masquerading as an ally for public health. However, the evidence tells us that e-cigarettes and HTPs bring with them the potential of a new epidemic — one that targets the innocent, non-smoking youth.

It is high time we paid closer attention to keeping our youth away from these deceptive products and countering the industry’s narrative of harm reduction. We urge our Filipino leaders at the WHO FCTC COP10 to represent us well and champion public health and evidence-based policymaking by countering the false narratives of the industry.

All views above are their own.

 

Emmanuella Iellamo is an advocate for tobacco control and sin taxes and Pia Rodrigo is strategic communications officer at Action for Economic Reforms.

Two doors up

PHOTO BY DYLAN AFUANG

Suzuki PHL brings in a longer, ingress/egress-friendly Jimny

By Dylan Afuang

A NEW VERSION of Suzuki’s famous off-road SUV recently made its local debut. Called simply the Jimny 5-Door, it’s the lengthened version of the current Jimny 3-Door, both of which will be retailed by Suzuki Philippines, Inc. (SPH).

The current Jimny, launched in 2018, boasts the squared appearance and off-road abilities of its predecessors that date back to 1970. For its distinctive styling and rough-and-ready reverence alone, throughout its four generations the Jimny has attracted a following here and abroad.

The SUV’s widespread appeal grew stronger still when it spawned two extra doors behind its two front ones last year.

The range starts with the Jimny 5-Door GL MT (P1.558 million), continues with the GLX AT (P1.698 million), and tops at the GLX AT Two-Tone whose color-combination options command a P10,000 premium over the standard GLX.

Over the 3-Door — and owing to its two rear passenger doors — the Jimny 5-Door is longer by 340mm for an overall length of 3,985mm. Between the two Jimnys, however, the total width (1,645mm) and height (1,720mm) remain the same.

The Jimny 5-Door retains the 3-Door’s styling cues, too, such as the upright and square body that features expansive windows to improve driver visibility. Similarities continue to the new model’s round headlamps and the chrome highlights on the grille that draw attention to its five-slot layout.

Supported by the existing body-on-frame construction and 15-inch alloy wheels, the new SUV keeps its counterpart’s 210mm of ground clearance.

While the standard model comes from Japan, the Jimny 5-Door is “manufactured in India, particularly by (Suzuki subsidiary) Maruti Suzuki,” SPH Managing Director Norminio C. Mojica confirmed to “Velocity” on the sidelines of the model’s press launch. “We chose India because of (Maruti’s) production capability to address the growing demand for this particular model,” the executive said, adding that Maruti’s production processes would enable the Jimny 5-Door to be “priced competitively” in the market.

Regarding demand, “We are expecting to sell 200 to 300 units per month this year,” Mr. Mojica said, noting that the target is taking into account the five-door model’s allocation for the Philippine market. “Depending on the market’s response, we’ll try to improve our allocation later this year… because, as you know, the Jimny is a ‘global phenomenon.’”

Behind the new doors that now feature power windows, the 5-Door’s rear seats accommodate two passengers, like the base SUV. The cargo hold (which now gets a power outlet and room lamp) has been bumped up in capacity to 211 liters, which can be accessed through the side-swinging tailgate.

Up front, new features such as a nine-inch touchscreen infotainment system with Apple CarPlay and Android Auto, automatic climate control, and cruise control on the Jimny 5-Door GLX, are introduced.

Similar to the original, the Jimny 5-Door is powered by Suzuki’s K15B 1.5-liter gasoline engine with 102hp and 134Nm of torque. The manual transfer case, the Suzuki AllGrip Pro 4WD part-time four-wheel drive system, and transmission choices of a five-speed manual and four-speed automatic are also retained.

Billy Joel releases ‘Turn The Lights Back On,’ first new song in years

BILLYJOEL.COM

LONDON — US singer-songwriter and pianist Billy Joel released “Turn The Lights Back On” on Thursday, his first new single in 17 years.

The ballad is the Grammy Award winner’s first original song since 2007’s “All My Life,” which was followed that same year by “Christmas in Fallujah,” featuring Cass Dillon. Mr. Joel’s 13th and last studio album, Fantasies & Delusions, was released in 2001.

Joel, known for hits like “Piano Man” and “Uptown Girl,” had recently teased new material was coming on his social media pages.

In June, he announced he would end his record-breaking monthly Madison Square Garden residency — which had begun in 2014 — this year.

He will perform shows across the United States as well as in Cardiff, United Kingdom over the coming months. — Reuters

BSP still in talks with banks to waive fees on small transfers

THE BANGKO SENTRAL ng Pilipinas (BSP) is still in talks with banks on the permanent removal of fees for small-value transactions, with lenders saying this would be challenging as fund transfer services entail operational costs.

BSP Deputy Governor Mamerto E. Tangonan said the central bank is still working with the banking industry as the regulator wants transaction fees for transfers below P1,000 waived permanently.

“There are still some concerns, but we’re working on overcoming those concerns,” he told reporters during the annual reception for the banking community late last month.

Banks are worried about their operational costs, he said, which include the expenses incurred for the delivery of services like fund transfers.

“For [a bank] to operate it (fund transfer services) for free, they have to recover some of the costs somewhere else,” Mr. Tangonan said.

BSP Governor Eli M. Remolona, Jr. earlier said the central bank has been employing moral suasion to influence the banking industry to permanently remove charges for small-value person-to-person online transactions.

The BSP has been encouraging banks since February last year to formalize the removal of these fees to help boost digital payments.

Bank of the Philippine Islands (BPI), Metropolitan Bank & Trust Co. (Metrobank), and Union Bank of the Philippines, Inc. (UnionBank) are some of the lenders that have temporarily waived charges for InstaPay transactions below P1,000 since last year.

For BPI customers, InstaPay transfers of up to P1,000 using its app will be not be charged a transaction fee until March 1, while Metrobank has extended its own promo until June 30.

Sought for comment, BPI President and Chief Executive Officer (CEO) Jose Teodoro “TG” K. Limcaoco said banks should be able to charge what they want for transfers, like how they can impose fees on withdrawals from automated teller machines. 

“There’s a cost to making transfers. It’s not free for the banks,” he said, noting that these expenses are related to technology, cybersecurity, and charges from the switch and the provider.

“That’s why within the bank, BPI to BPI, it’s free because there are no costs for us. But when you go outside the bank, there is a direct cost, and it’s unfair to insist that it should be free. You have to leave it up to every bank,” Mr. Limcaoco said.

UnionBank President and CEO Edwin R. Bautista said while it is possible to waive transaction fees for small-value transactions, recovering losses could be difficult.

“If the customer transacts purely digitally, our costs are low, so I think that’s okay,” he said in mixed English and Filipino. “But I think the problem for this is if some of the banks have customers who are half digital, half branch-based as costs could eat into the resources of the bank.”

Banks that process bigger volumes of digital transactions would take a hit, Mr. Bautista said, noting that UnionBank has around nine million transactions monthly that are made through the BSP’s automated clearing house InstaPay.

Removing transaction fees may not necessarily motivate consumers to use digital payments more, Rizal Commercial Banking Corp. President and CEO Eugene S. Acevedo said.

“We’re not sure whether that’s exactly what will motivate people to use it more. We’re experimenting with it, but we’re looking for other ways to see how else we can increase the usage… A customer is not just somebody who does payments. A customer does other things. We have to think of the customer as part of an ecosystem,” he told reporters.

“What we’re challenging ourselves is what else we can do to increase usage beyond that… For example, incentives for usage. Another would be bundling it with other banking products,” Mr. Acevedo said.

Metrobank President and CEO Fabian S. Dee said there was a small increase in online transactions following the fee waiver.

“(Losses) are part of the whole equation. We’ll see how it goes,” he said.

The value of transactions done through InstaPay climbed by 41.8% year on year to P5.02 trillion in 2023 from P3.54 trillion previously, central bank data showed

Meanwhile, the volume of InstaPay transactions went up by 34.6% to 838.56 million from 548.66 million in 2022.

The combined value of transactions done via the InstaPay and PESONet grew by 29.3% to P12.86 trillion in 2023 from the P9.94 trillion seen in 2022. In terms of volume, transactions through these payment gateways climbed by 46.7% to 929.64 million last year from 633.47 million in 2022. — Keisha B. Ta-asan

PSE says VWAP transaction value should be no less than P500,000

REUTERS

THE Philippine Stock Exchange, Inc. (PSE) has announced that the value of a volume-weighted average price (VWAP) transaction should be no less than P500,000.

In a document dated Feb. 1 posted on its website, the local stock market operator said that its VWAP trading rules had already been approved by the Securities and Exchange Commission (SEC). However, the PSE has yet to provide the specific launch date for the new trading product.

“The exchange shall advise the public in due course of the official launch and implementation of the VWAP trading Rules,” the PSE said.

VWAP trading is among the products that will be launched by the PSE this year as part of improving market liquidity and expanding its portfolio. The PSE defines a VWAP transaction as “a pre-arranged transaction executed at the VWAP price of a security.”

VWAP refers to the average price at which a security has been traded during a trading day, allowing investors to observe the trend and value of the security.

In January, the PSE stated that VWAP trading improves market transparency, noting that institutional investors could utilize the tool to execute large orders and avoid artificially inflating the price of a security.

Aside from the value being no less than P500,000, the PSE’s approved rules state that VWAP transactions can only be executed within 15 minutes after the run-off/trading-at-last period.

VWAP transactions can only be executed by a single trading participant, provided that the PSE has the option to subsequently make the VWAP trading facility available for two-firm trading.

“Only authorized salesmen and traders of the trading participants shall be allowed to execute VWAP transactions,” the rules said.

The approved rules also provided that the execution price of VWAP transactions would be computed based on the VWAP for the security in a given trading day, while the VWAP should not exceed four decimal places.

“Except block sales, intentional cross and odd lot transactions, all other trades shall be included in the VWAP computation for the security,” the rules said.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the introduction of VWAP trading would help the local bourse become more attractive to large institutional investors.

“This is aimed at making our market more attractive to large institutional investors who would like to buy or sell a sizable amount of stock at its full-day VWAP,” Mr. Colet said in a Viber message.

“The facility allows those market participants to potentially improve the quality of their trade execution as they can transact at a price that is at least not worse than the VWAP,” he added.

Mr. Colet added that the entry of VWAP trading will help boost the local stock market in comparison to other markets.

“VWAP trading is offered in other markets, such as the stock exchanges of Thailand and Malaysia, so this product is another step in improving the value proposition of the PSE,” he said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that VWAP trading would boost market price transparency.

“This would promote greater market price transparency for the investing public, as well as greater price discovery. This is part of further capital market development,” he said. — Revin Mikhael D. Ochave

Fisheries output seen rebounding due to infra, supply chain upgrades

PHILSTAR

By Adrian H. Halili, Reporter

FISHERIES production is expected to rebound this year on the back of enhancements to supporting infrastructure and an initiative to develop agro-industrial estates focused on fisheries products, analysts said.

“This value chain approach is likely to increase production at all levels,” Asis G. Perez, convenor of advocacy group Tugon Kabuhayan, said in a phone call.

The Department of Agriculture (DA) has said that it was planning to invest in more infrastructure to support the agri-fisheries sector.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. also sought to expand the functions of the Philippine Fisheries Development Authority to develop and manage marine-agro-industrial estates.

However, Philippine Association of Fish Producers, Inc. Chairman David B. Villaluz said that the aquaculture subsector will continue to face challenging conditions due to the increasing price of fish feed.

Hangga’t hindi bumababa ang presyo ng feeds (until fish feed prices fall)…production will be significantly impacted,” Mr. Villaluz said by telephone.

He added that fish producers may reduce their use of feed by 50%, ultimately affecting output levels.

“If we are only using natural food in fish ponds, production may drop to 600 to 750 kilograms per hectare annually. But if we use (commercially produced) fish feed, production would be 2 to 2.5 metric tons per hectare a year,” he added.

In 2023, fisheries production dropped 6.5%, accelerating the 5% decline recorded in the prior year, according to the Philippine Statistics Authority.

Mr. Perez said that the DA’s plan to revive aquaculture in Laguna de Bay will improve output.

Laguna de Bay currently produces about 90,000 metric tons (MT) of freshwater fish annually and provides livelihoods to 13,000 fisherfolk, according to the Laguna Lake Development Authority.

“That can be an increased by over 30,000 MT a year… in bangus (milkfish) and tilapia production. When the previous administration froze Laguna de Bay new fish cultivation operations, we lost about 45,000 MT of production from the lake alone,” he said.

“The new initiative to build up output from Laguna de Bay will have a tremendous impact on production… 5% increase kaagad ’yan (output will immediately rise 5%),” he added.

Mr. Villaluz said the government should focus on fisheries research and developing low-cost feed.

Machiavelli’s The Prince

NICCOLÒ MACHIAVELLI, oil on canvas by Santi di Tito; in the Palazzo Vecchio, Florence.
NICCOLÒ MACHIAVELLI, oil on canvas by Santi di Tito; in the Palazzo Vecchio, Florence.

Is it better to be loved, or feared?

“The answer is that one would like to be both the one and the other; but because it is difficult to combine them, it is far safer to be feared than loved if you cannot be both.”

“Love and fear can hardly exist together… men are driven by two principal impulses, either by love or by fear.”

“It is much safer to be feared than loved because …love is preserved by the link of obligation which, owing to the baseness of men, is broken at every opportunity for their advantage; but fear preserves you by a dread of punishment which never fails.”

“Men shrink less from offending one who inspires love than one who inspires fear.”

“People should either be caressed or crushed. If you do them minor damage they will get their revenge; but if you cripple them there is nothing they can do. If you need to injure someone, do it in such a way that you do not have to fear their vengeance.”

The quotes are from Niccolò Machiavelli’s The Prince, written about 1513 A.D. in Italy. His role model for this political treatise was the conqueror Duke Cesare Borgia, illegitimate son of Cardinal Rodrigo Borgia who later became Pope Alexander VI after his (Rodrigo’s) uncle Pope Calixtus III. “Borgia embodied the mix of sacred and earthly claims to power that marked Renaissance Italy. Appointed a cardinal at 18 years old by his father, Cesare’s true vocation after six years was waging war and acquiring wealth. A brutal, ruthless, but often brilliant soldier, he had one obsessive aim: to carve out a state for himself and his clan in central Italy. His unstoppable success was under the formidable protection of his elderly papal father and the entrenched Borgia dynasty (National Geographic Magazine, Oct. 23, 2020).

“Never attempt to win by force what can be won by deception,” Machiavelli wrote in The Prince.

“A prince never lacks legitimate reasons to break his promise.”

“All courses of action are risky, so prudence is not in avoiding danger (it’s impossible), but calculating risk and acting decisively. Make mistakes of ambition and not mistakes of sloth. Develop the strength to do bold things, not the strength to suffer.”

Some scholars see Machiavelli’s Borgia as the precursor of state crimes in the 20th century. Others, including Macaulay and Lord Acton (who said, “Power corrupts; absolute power corrupts absolutely”) have historicized Machiavelli’s Borgia, explaining the admiration for such violence as an effect of the general criminality and corruption of the time (Machiavelli’s Virtue, Harvey C. Mansfield, Chicago: 1996).

“Any man who tries to be good all the time is bound to come to ruin among the great number who are not good. Hence a prince who wants to keep his authority must learn how not to be good, and use that knowledge, or refrain from using it, as necessity requires,” Machiavelli says in The Prince.

“The new ruler must determine all the injuries that he will need to inflict. He must inflict them once and for all.”

“It is necessary for him who lays out a state and arranges laws for it to presuppose that all men are evil and that they are always going to act according to the wickedness of their spirits whenever they have free scope.”

“The end justifies the means” is a paraphrase of Niccolò Machiavelli. It means that if a goal is morally important enough, any method of getting it is acceptable. In Machiavelli’s words: “Let a prince have the credit of conquering and holding his state, the means will always be considered honest, and he will be praised by everybody because the vulgar are always taken by what a thing seems to be and by what comes of it; and in the world there are only the vulgar, for the few find a place there only when the many have no ground to rest on.”

“Men in general judge more by the sense of sight than by the sense of touch, because everyone can see but few can test by feeling. Everyone sees what you seem to be, few know what you really are; and those few do not dare take a stand against the general opinion.”

“Of mankind we may say in general they are fickle, hypocritical, and greedy of gain.”

Many think Machiavelli’s The Prince is a satire. The Oxford Dictionary defines “satire” as a genre of literature that uses humor, irony, exaggeration, or ridicule to expose and criticize people’s stupidity or vices, particularly in the context of contemporary politics and other topical issues. Machiavelli indeed shows the daggered irony of how cunningly deceptive, manipulative, and ruthless the princes of middle Europe were, in his time, and how these despots got away with it — to be bad and yet accepted by the people. British philosopher and Nobel laureate Bertrand Russell once said, it is “a handbook for gangsters.”

To celebrate the book’s 500th anniversary, the Boston University College of Arts & Sciences history department discussed why Machiavelli’s masterwork continues to resonate. “Some say he wanted to empower tyrants; others say he listed their crimes the better to expose them. Readers across the ages have found support for all kinds of causes: monarchists, defenders of republics, cynics, idealists, religious zealots, religious skeptics. Whatever its intent, one thing is clear. The book follows its declared purpose fearlessly and without hesitation: to show rulers how to survive in the world as it is and not as it should be” (bu.edu, Feb. 6, 2013).

Machiavelli himself was a “survivor.” He from whose name comes the pejorative “Machiavellian” qualifier, quite cunningly maneuvered himself in critical government posts (foreign service) through the changes among the powers-that-be in the turmoil of the 16th century flux of the Renaissance. He has been given the honorific title of “father of political science” by some admiring political analysts.

Machiavelli wrote The Prince just after he was forced to leave Florence as a political exile. Dedicated to Lorenzo de’ Medici, the book is Machiavelli’s advice to the current ruler of Florence on how to stay in power. It was also his effort, though unsuccessful, to gain an advisory post in the Medici government. Yet The Prince was not even read by the person to whom it was dedicated, Lorenzo de Medici (insights.som.yale.edu).

“The advice espoused in The Prince led his name to become shorthand for cunning, manipulation, and self-serving behavior— one of the few eponymous adjectives to strongly convey an abstract idea. His open appeal to guile and his subversion of Christian norms were regarded as so abhorrent that, in 1559, the work would be listed in the Catholic Church’s Index of Prohibited Books” (natgeo.com, Oct. 23, 2020).

But Machiavelli’s ideas on how to acquire power and glory as a leader had a profound impact on political leaders throughout the modern west, helped by the new technology of the printing press.

Leaders as diverse as Oliver Cromwell, Frederick the Great, Louis XIV, Napoleon I, Otto von Bismarck, and John F. Kennedy read, contemplated, and debated Machiavelli’s ideas. “The most one can say about The Prince in this regard is that Kissinger and Nixon preferred it as their bedtime reading” (penguinrandomhouse.com). Napoleon I of France wrote extensive comments to The Prince. After his defeat at Waterloo, these comments were found in the emperor’s coach and taken by the Prussian military. According to their biographies, Italian dictator Benito Mussolini wrote a discourse on The Prince and Soviet leader Joseph Stalin read The Prince and annotated his own copy.

Does Machiavelli, therefore, share some blame for the violence and brutality that has wracked the globe since he first wrote? No. “People don’t need The Prince to be inspired to commit every atrocity it names and more,” the forum at BU for the book’s 500th year anniversary concluded. “The impact of the book has instead been to force countless readers over the past 500 years to confront, in the starkest terms possible, the most important questions about politics and morality.”

And time must be looping, as in an automatic replay video, livestreaming strong-man rules in countries big and small, young and old.

“In order to get a secure hold on new territories,” the book advises, “one need merely eliminate the surviving members of the family of their previous rulers.”

It is terrifying how “the end justifies the means” is the backdrop of the to-the-death fight between Russia and Ukraine for territory. Ukraine claims that Russian casualties since February 2022 were 386,230, staggeringly high, but broadly corresponding with estimates from the US military and intelligence officials that Russia has suffered 315,000 dead and injured troops in the full-scale invasion. If accurate, this means Russian casualties are equivalent to almost 90% of the total personnel it had when the conflict began in February 2022. A New York Times report in August cited US officials who estimated the Ukrainian death toll at close to 70,000, with another 100,000 to 120,000 wounded. “Ukraine’s goal is not liberation of the territory. Ukraine’s goal is the elimination of the military threat from Russia, and the liberation of territory would be only a sequence of the main goal,” Ukrainian officials said (Newsweek, Feb. 1, 2024).

“Whoever conquers a free town and does not demolish it commits a great error and may expect to be ruined himself,” Machiavelli says in The Prince.

More than the liberation of territory for the sake of the people, the goal of the leader is to keep his power. The great leader, Machiavelli says, must be able “to conquer by force or fraud, to make himself beloved and feared by the people.”

And in our own little country, we live in fear at not knowing the truth, not knowing where we are being led to.

Machiavelli says princes are obligated to lie in certain circumstances. He also states that “while it is unnecessary for the prince to have positive qualities, such as honesty, trustworthiness, sympathy, compassion, or be religious, it is essential for the prince to be viewed so by the public” (ipl.org).

And we, the “vulgar” masses, must bow to the fathers and sons/daughters of warring political dynasties like in Machiavelli’s time.

“The vulgar crowd always is taken by appearances, and the world consists chiefly of the vulgar,” Machiavelli taunts us all.

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

V1 champ looks to further grow racing career

Formula V1 Challenge champion Rainy Medina — PHOTO FROM TEAM AUTOHOLIC-RACEFORM

FORMULA V1 CHALLENGE Sporting Class overall champion Rainy Medina looks to further his racing career through winter testing in any of the three racing series: Radical, Super FJ, or Formula 4. In his first year of racing in V1, Mr. Medina had beaten other racers with more experience. The Formula V1 Challenge is a local single-seater championship where rising motorsports talents compete in three legs on the Clark International Speedway.

On the iconic Suzuka track, he had placed 22nd — climbing up from 26th place. The Suzuka Clubman Race is Japan’s premier Formula VITA racing division where top drivers from all of Japan (and, recently, the Philippines) compete. Each leg consists of a single qualifying session and race.

Coached and managed by Philippine motorsport legend Don Pastor, Rainy Medina races under Team Autoholic-Raceform. Formula V1 has a total of 15 drivers who compete in Pro Class and Sporting Class; Formula VITA/Suzuka Clubman, on the other hand, features 30 drivers.

SM Prime shares dip despite capex news, Q4 GDP

SHARES in SM Prime Holdings, Inc. edged down last week despite news on its allocation for capital expenditures (capex) this year reaching P100 billion and the Philippine economy expanding by 5.6% in the fourth quarter of 2023.

Data from the Philippine Stock Exchange (PSE) showed 30.82 million shares worth P1.05 billion exchanged hands from Jan. 26 to Feb. 2, making the listed property developer the fourth most actively traded stock in the local bourse last week.

Shares in the Sy-led company finished trading at P33.60 on Friday. The stock price inched down by 0.3% from a week earlier. For the year, the stock rose by 2.1%.

The local market has been buoyed by a prevailing sense of optimism by the easing of the macroeconomic backdrop, said Luis A. Limlingan, head of sales at Regina Capital Development Corp.

He added that the news on the fourth quarter gross domestic product (GDP) affected equities, which caused the PSE index to rise due to a bullish market.

“With the ongoing discussions about potential rate cuts this year, the property sector is in a favorable position as investors expect homebuyer’s appetite to come back, and this bodes well for [ SM Prime’s] performance, with the company having a lion’s share in the property sector,” Mr. Limlingan said in an e-mail.

In the fourth quarter of 2023, Philippine economic growth slowed to 5.6%, from the revised 7.1% expansion in the third quarter.

Meanwhile, the country’s full-year GDP print also stood at 5.6%, below the government’s target of 6-7%, and much slower than the 7.6% expansion in 2022.

Last week, reports showed that the property developer has allocated up to P100 billion for its capital expenditure budget this year.

SM Prime President Jeffrey C. Lim told reporters that the company is also awaiting “more favorable market conditions” before proceeding with the planned initial public offering (IPO) of its real estate investment trust (REIT).”

Additionally, the company’s vice-president for Investor Relations, Alexander D. Pomento, said that SM Prime could proceed with its IPO as early as the second quarter of this year if these “market conditions” improve.

Looking back, SM Prime Holdings announced a plan to launch its REIT portfolio by the second half of 2023, however, in August, the company deferred the market listing of REIT to this year due to unfavorable market conditions, citing headwinds such as higher interest rates, inflation, and market sentiments as reasons for the postponement.

This proposed REIT offering is likely to be valued between $3.5 billion to $4 billion and initially composed of 12 to 15 assets, which will come from the 82 malls the company currently owns and based on the 30 to 35 malls that are now fully matured.

“The commitment of a significant capital expenditure budget signals the company’s plans for expansion or strategic investments,” Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, said in a Viber message.

He added that the decision to postpone the REIT IPO shows a careful approach towards the current market conditions. However, given the company’s considerable cash reserves, this delay may be a smart move as the current market sentiment for equities is unpredictable.

Market players reacted positively to this news based on their perspectives on SM Prime’s financial strategy and the current state of the real estate market, resulting in being optimistic about the company’s potential for growth and may view the capital expenditure as a positive development, according to Mr. Arce.

For Mr. Limlingan, the listed property developer may have hinted that it will be more aggressive with its launches this year compared to 2023.

In the third quarter, SM Prime Holdings ‘attributable net income jumped by 35.1% to P10.68 billion from P7.9 billion in the same period in 2022. Meanwhile, consolidated revenues also soared by 19.8% to P32.7 billion from P27.3 billion.

On the other hand, its nine-month income rose by 36.9% to P30.13 billion, while consolidated revenues for the January to September period grew by 25.7%% to P92.6 billion.

For Mr. Arce, SM Prime’s fourth quarter-2023 attributable net income could reach P8 billion while its full-year 2023 could reach P39.8 billion.

For the year, earnings are expected to increase up to P43.6 billion.

“Traders often look at a company’s financial health and performance [and] positive indicators such as revenue growth, profitability, and efficient management of resources can attract traders,” he said.

He pointed out that market players pay attention to management statements and guidance.

SM Prime’s decision to postpone the planned REIT IPO and wait until favorable market conditions occur indicates a cautious approach, which may be viewed as prudent by some traders. Additionally, they may assess SM Prime’s long-term potential by considering its upcoming projects, expansion plans, and ability to capitalize on future trends in the real estate market.

He pegged support and resistance levels at P31.95 and P34.90, per share, respectively.

Meanwhile, Mr. Limlingan sees fourth quarter 2023 earnings to increase more than P8 billion with the full year 2023 net income estimate of P38 billion.

“For 2024, we are estimating a 29% year-on-year increase in its attributable net income,” he said.

He said that SM Prime is particularly focused on leasing revenues and is enthusiastic about expanding in China which may help reduce over-reliance on the domestic market.

He added that the property developer’s plan to expand its presence in China indicates its strategic vision to tap into new markets and diversify its revenue streams with China offering vast opportunities for the company’s leasing portfolio.

“We plot our stronghold at P33.20, while resistance is at p34.45,” Mr. Limlingan said. — Abigail Marie P. Yraola

Gov’t debt yields mixed on monetary policy bets

YIELDS on government securities (GS) traded in the secondary market moved sideways last week as sentiment was mixed amid monetary policy bets here and in the United States and following the release of Philippine gross domestic product (GDP) data.

GS yields, which move opposite to prices, inched up by an average of 0.23 basis point (bp) week on week, based on PHP Bloomberg Valuation Service Reference Rates as of Feb. 2 published on the Philippine Dealing System’s website.

Yields on the 91-, 182-, and 364-day Treasury bills (T-bills) went up by 2.02 bps, 6.18 bps, and 0.32 bp to 5.4422%, 5.8126%, and 6.044%, respectively.

Rates at the belly likewise rose, with the two-, three-, four-, and five-year Treasury bonds (T-bond) climbing by 1.02 bps (to 5.9763%), 1.15 bps (6.0161%), 1.32 bps (6.0559%), and 1.01 bps (6.0864%).

Meanwhile, the seven-year T-bond saw its rate drop by 1.25 bps to 6.1161%.

All tenors at the long end saw their yields fall week on week. Rates of the 10-, 20-, 25-year papers dropped by 5.28 bps, 1.9 bps, and 2.07 bps to end at 6.1419%, 6.1035%, and 6.1005%, respectively.

Total GS volume traded reached P20.91 billion on Friday, higher than the P19.39 billion seen on Jan. 26.

“Yields moved sideways during the week due to mixed signals from prospects of delayed policy rate cuts from the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP), and the robust Philippine gross domestic product (GDP) report for the fourth quarter,” a bond trader said in an e-mail.

“Market participants remained largely cautious during the week as the economic data releases and the Fed policy meeting were widely seen to influence the future monetary policy actions by central banks this year,” the trader added.

The BSP is likely to remain cautious and wait for the Fed to cut rates before starting to loosen policy, analysts said.

The Federal Open Market Committee (FOMC) kept the target fed funds rate steady at the 5.25-5.5% range for the fourth straight meeting on last week. The Fed hiked by 525 bps from March 2022 to July 2023.

Fed Chair Jerome H. Powell said after their two-day review that they are unlikely to ease their policy stance in their March 19-20 meeting amid lingering inflation risks, dashing market expectations of rate cuts in the first quarter.

“The pause adds to the data we are looking at,” BSP Governor Eli M. Remolona, Jr. said. “The statement was slightly more hawkish than before.”

The Monetary Board raised benchmark interest rates by 450 bps from May 2022 to October 2023, bringing the policy rate to a 16-year high of 6.5%.

The BSP will hold its first meeting for the year on Feb. 15.

Meanwhile, Philippine economy grew by 5.6% in 2023, slightly faster than the 5.5% median estimate of 20 economists in a BusinessWorld poll. Still, this fell short of the government’s 6-7% target for the year and was slower than the 7.6% expansion in 2022.

In the fourth quarter alone, GDP also grew by 5.6%, slightly below the 5.7% median forecast in the same poll. This was slower than the revised 6% in the third quarter and the 7.1% growth in the same period in 2022.

“The bond market ended sideways last week, but better buying was seen from Tuesday after the auction as we saw good demand from investors. The lower yield was also supported by the downtrend in the US Treasury yields given the FOMC decision,” a second bond trader said in a Viber message.

The Bureau of the Treasury (BTr) last week raised P30 billion as planned via the reissued three-year bonds as total bids reached P62.434 billion, or more than twice the amount on the auction block.

The bonds, which have a remaining life of two years and 11 months, were awarded at an average rate of 6.007%, with accepted yields ranging from 5.95% to 6.05%.

For this week, the first bond trader said GS yields may decline amid potentially softer Philippine inflation in January.

A BusinessWorld poll of 16 analysts yielded a median estimate of 3.1% for January headline inflation, within the BSP’s 2.8-3.6% forecast. If realized, this would be the second consecutive month that inflation was within the BSP’s 2-4% target band. It will also be slower than the 3.9% in December.

The Philippine Statistics Authority will release January consumer price index data on Tuesday.

“We continue to see sideways movement, but maybe a little higher given the five-year auction and as the market prepares for a possible retail Treasury bond announcement this month,” the second bond trader added.

The BTr will auction off P30 billion in reissued five-year T-bonds with a remaining life of four years and 11 months on Tuesday.

“The market will also wait for the inflation report. The BSP is expecting a lower print compared to the previous month. The market will likely focus more on the month-on-month trend rather than year-on-year given base effects,” the trader said. — L.O. Pilar

Carl Weathers, who lit up screen as Apollo Creed in Rocky, 76

Carl Weathers in his final role in The Mandalorian. — IMDB

ACTOR CARL WEATHERS, a former professional American football player who shot to stardom by playing the brash and charismatic boxer Apollo Creed in the Rocky movies, died on Thursday of undisclosed causes, his manager announced on Friday. He was 76.

Though he had other prominent roles, acting in the recent Star Wars spinoff series The Mandalorian and the 1987 science fiction horror movie Predator, Weathers was best known for playing Apollo Creed opposite Sylvester Stallone’s Rocky Balboa in the hit movies of the 1970s and 1980s.

Mr. Weathers’ character was at first a rival and later an ally to the Rocky character in the first four movies of the series.

He also helped launch the career of Stallone, at that time a Hollywood unknown who wrote and starred in the 1976 film that went on to sweep the 1977 Oscars, snagging best picture and best actor for Mr. Stallone.

Mr. Stallone said in a video tribute he was “torn up” and “just trying to hold it in.”

“When he walked into that room, and I saw him for the first time, I saw greatness,” Mr. Stallone said, standing before a LeRoy Neiman painting of the two of them boxing. “But I didn’t realize how great. I never could have accomplished what we did with Rocky without him.”

Modeled after Muhammad Ali, the Creed character demonstrated smarts and flare, offering audiences a strong and positive Black character at a time when mainstream movie roles were just starting to break out of stereotypes.

While he could show off his physique in movies like Action Jackson, in which he played the lead character in the 1988 film, Mr. Weathers also played comedy, taking a turn opposite Adam Sandler as the one-handed golf coach in Happy Gilmore in 1996, and parodying himself in the television series Arrested Development in four episodes from 2004 to 2013.

Weathers had a brief career playing for the Oakland Raiders of the National Football League and retired from the sport to pursue acting.

He landed steady work in minor roles until he was cast as Creed, a role that according to Hollywood lore originally went to boxer Ken Norton, who dropped out just before production.

In a 2016 interview with the Daily Beast, Weathers said he “stole a lot” from Ali in creating the character.

“With any role that’s so iconic, defining, grand — it was so many things, you know? But yeah, it puts you on the map and makes your career, so to speak. But that’s a one-off, so you’ve got to follow it up with something. Fortunately those movies kept coming,” Mr. Weathers said.

After the Creed character ran its course, Mr. Weathers teamed up with the other major action star of the period, Arnold Schwarzenegger, with a role in the 1987 hit Predator.

The Mandalorian put Mr. Weathers back into the limelight over 10 episodes from 2019 to 2023.

Married and divorced three times, Mr. Weathers is survived by two children, Jason and Matthew. The statement from his manager described Mr. Weathers as a “beloved brother, father, grandfather, partner, and friend.” — Reuters

French farmers head home but anger spreads elsewhere in Europe

REUTERS

BRUSSELS — Protesting farmers demanding just prices and less red tape blocked the border between Belgium and the Netherlands on Friday, while their peers in France started lifting blockades countrywide after the government made further concessions.

Farmers’ protests have erupted in numerous European countries from France to Poland, exposing tensions over the impact on farming of the European Union’s (EU) drive to fight climate change, rising costs and competition from abroad.

The frustration came to a head in Brussels this week, where farmers threw eggs and stones at the European Parliament and set off fireworks as they demanded EU leaders at a summit nearby do more to help them.

Belgian and Dutch farmers blocked several border crossings between their countries on Friday as they continued to prevent trucks entering or leaving the port of Zeebrugge, which handles car imports and some fresh produce from the UK and elsewhere.

Carmakers sending deliveries through Zeebruggee include Tesla, BMW, Mercedes, Hyundai and Volvo, a port spokesperson said, adding that the port’s capacity was fast filling up with vehicles stuck on the quay.

Around 2,000 trucks were backed up outside the port.

Belgian Prime Minister Alexander De Croo urged his farmers to lift their blockades.

French farmers, meanwhile, were dismantling many of their roadblocks made of hay bales at dozens of sites across France, including several highways leading into the French capital, pausing their protests after receiving more government pledges.

“The roadblocks are being lifted region by region. Some are still in place but little by little, during the morning, they will be removed,” Jerome Despey, a senior official from the FNSEA farmers’ union, told franceinfo radio.

The French farmers said President Emmanuel Macron’s government now needed to act fast on its pledges, which have included scrapping plans to raise tax contributions on tractor diesel, an easing of pesticide regulations, a pause on new fallow land rules, and more safety checks on food imports.

Their return to farms will bring some respite to France’s new Prime Minister Gabriel Attal, 34, but elsewhere in Europe governments were still scrambling to quell the spreading anger.

Greece’s government said it would extend a special tax rebate on agricultural diesel by a year to help support farmers, whose demands also include cheaper electricity and faster compensation for crops and livestock lost to flooding.

French Agricultural Marc Minister said more hard work lay ahead. “The farmers haven’t given us a free pass for eternity,” he said. — Reuters