De Bruyne inspires Man City to late comeback win at Newcastle

January 14, 2024 | 7:14 pm

NEWCASTLE, England — Manchester City’s Kevin de Bruyne inspired a late comeback 3-2 victory for his side at Newcastle United on Saturday in his first Premier League action since the opening day of the season.

The Belgian midfielder has been missing since August because of a hamstring injury but came off the bench in the 69^th minute with City trailing 2-1 to spark a remarkable turnaround.

Mr. De Bruyne equalized with a trademark silky finish five minutes after replacing Bernardo Silva and played the perfect pass in stoppage time for fellow substitute Oscar Bobb to secure the three points with his first Premier League goal.

Manchester City’s players celebrated loudly at the final whistle as the victory took them up to second place, two points behind Liverpool with both sides having played 20 games.

Manager Pep Guardiola boasts an embarrassment of riches in Man City’s squad but the 32-year-old Mr. De Bruyne proved yet again that he is simply irreplaceable and his return could not have come at a better time.

Bernardo Silva had given Man City a 26^th-minute lead with a sublime back-heeled finish from Kyle Walker’s low cross but Pep Guardiola’s side were soon rocked back on their heels.

Alexander Isak curled in an equaliser in the 35th minute and Anthony Gordon sent the home fans wild with another high-quality finish past Man City keeper Stefan Ortega, who had replaced the injured Ederson in the fifth minute.

Man City missed a series of chances in the second half as Newcastle edged towards a morale-boosting victory, but the mercurial Mr. De Bruyne’s arrival made all the difference.

They have 43 points to Liverpool’s 45 while Newcastle’s fourth successive defeat left them in 10^th spot.

With City now set to enjoy a two-week break, Norwegian goal machine Erling Haaland could also be back from a foot injury by the time they play in the league again in another boost to their prospects of a fourth successive title.

The 20-year-old Mr. Bobb showed that Man City may have another Norwegian diamond in their ranks.

He displayed superb footwork to control Mr. De Bruyne’s flighted pass and skip inside to beat Martin Dubravka for the winner.

Struggling Newcastle had an early goal by Sean Longstaff ruled out for offside and were furious after City’s opener, claiming that Mr. Gordon had been baulked by Ruben Dias at the other end of the pitch as he tried to sprint down the wing.

Their anger fuelled a stunning response with Isak latching on to Bruno Guimaraes’s first-time pass and bending a shot past Ortega. City’s high defensive line was exposed again when Mr. Gordon exacted revenge for his perceived injustice, turning Walker with ease and beating Ortega with a pinpoint finish.

Had Mr. Isak buried another chance shortly afterwards the outcome might have been different but Newcastle’s season is now crumbling in alarming fashion. — Reuters

Inter thrashes Monza 5-1 away with Calhanoglu, Martinez doubles

January 14, 2024 | 7:14 pm

MONZA, Italy — Inter Milan outclassed Monza to chalk up a 5-1 away win in Serie A on Saturday with two goals each from Hakan Calhanoglu and Lautaro Martinez as they moved a provisional five points clear at the top after an exciting game with three penalties.

Inter, who are on a 14-game unbeaten streak in the league, lead the table with 51 points from 20 games ahead of second-placed Juventus who host lowly Sassuolo on Tuesday.

“We had an excellent match, prepared in the best way (possible) in these five days,” coach Simone Inzaghi told Sky Sport before his side defend their Italian Super Cup crown.

Inter will play Lazio in Riyadh in the last four in Saudi Arabia on Friday after Napoli face Fiorentina in the other semi-final on Thursday. The final is scheduled for Jan. 22.

Inter got a quick start against Monza as Mr. Calhanoglu gave them the lead with a 12^th-minute penalty, sending a low shot inside the post after the spot kick was given for handball. Mr. Martinez, whose attempt had led to the penalty, looked disappointed at not taking it himself but the Argentine did double the lead two minutes later from close range.

Monza struggled to get out of their own half in the opening stages but came close to scoring in the 30^th minute when midfielder Matteo Pessina nodded the ball home following a free kick but the goal was ruled out for an offside.

Inter continued to dominate after the break and Mr. Calhanoglu added a third on the hour mark from near the penalty spot, netting after a neat back-heel from Marcus Thuram.

It was the first Serie A double for the Turkey midfielder who joined Inter in June 2021 after four seasons at AC Milan.

MORE PENALTIES
Mr. Pessina eventually pulled a goal back for the home side in the 69^th with a spot kick but Martinez then made it 4-1 with another penalty after 84 minutes.

The Argentine, who netted twice in the reverse fixture in August, became the fourth player involved in at least 20 goals in each of the last four seasons across the big five European leagues, joining Mohamed Salah, Kylian Mbappe, and Harry Kane.

Mr. Martinez has 18 goals and two assists so far this term.

Mr. Thuram sealed the win for the visitors two minutes from time after a brilliant cross from Henrikh Mkhitaryan. — Reuters

Milwaukee overpowers Curry-less Golden State Warriors, 129-118

January 14, 2024 | 7:14 pm

GIANNIS ANTETOKOUNMPO, Damian Lillard and Khris Middleton combined for 84 points, and the well-rested Milwaukee Bucks overpowered the short-handed Golden State Warriors late for a 129-118 victory Saturday night in Wisconsin.

Mr. Antetokounmpo led the way with a game-high 33 points. Mr. Lillard had 27 and Mr. Middleton 24 as part of a double-double with a game-high 10 assists for the Bucks, whose only game since Monday was a 33-point breeze over the visiting Boston Celtics.

Playing the second night of a road back-to-back and doing so without Stephen Curry (rest), the Warriors also had three players score 20 or more points, led by Jonathan Kuminga with 28. Brandin Podziemski totaled 23 in a double-double with a game-high-tying 10 rebounds, and Klay Thompson had 21.

The Warriors led by as many as seven points, that coming when Mr. Thompson nailed a 3-pointer to give the visitors a 72-65 lead at the midpoint of the third quarter. But two bursts eventually allowed the Bucks to win for just the third time in their last seven games.

Less than two minutes later after the Warriors had gone up by seven, Milwaukee regained a 75-72 advantage after two Antetokounmpo dunks and consecutive 3-pointers by Bobby Portis and Mr. Lillard in a 10-0 burst. — Reuters

Smooth transition

January 14, 2024 | 7:13 pm

When the Patriots signed linebackers coach Jerod Mayo to a contract extension last year, they included legal wording on a succession plan that effectively fast-tracks his ascent to the head coaching job should the opportunity arise. They promptly communicated the provisions to the National Football League to ensure that they do not run afoul of the Rooney Rule — which would otherwise require them to open the selection process to at least two minority candidates — in such a case.

Needless to say, the Patriots wanted to cover the bases right then and there. Mayo was well-liked by stakeholders. He showed that he possessed the skill set required for mentorship in the sidelines even when he still played for them, and he displayed them with confidence once he was tapped to join Bill Belichick’s staff in 2019. So when he was eligible for a new deal, they pulled out all the stops and made him feel wanted with language that underscored his place in the hierarchy. And it was no coincidence that he didn’t bother to entertain interview offers for openings elsewhere.

Not that the Patriots were angling for Mayo to replace Belichick. They may have had a bench tactician in waiting, but they held out hope that the sport’s best of all time still had some magic left to weave. They just wanted to be certain that if he didn’t, everything was already in place for a smooth transition. Which was just fine for critics who believed change to be long in coming. Since winning the Super Bowl in 2018, all they’ve had to show are two wild card losses and three early flameouts off an abhorrent 43% win percentage.

And so Mayo has the Conn of a ship in need of righting, and fast. And while he comes with a healthy dose of goodwill, he likewise knows he bears the weight of great expectations. Unrealistic? Of course. Having been with the Patriots in various capacities for the better parts of two decades, however, he knows the lay of the land. As if it isn’t already bad enough that he just replaced a legend. If nothing else, though, he’s prepared for the challenge. Early last year, he had been telling all and sundry of his readiness. It’s now time for him to show that he can walk the talk.

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

Taiwan president-elect Lai set to face China’s ire

January 14, 2024 | 4:46 pm

TAIPEI — Taiwan’s new president-elect, Lai Ching-te, is likely to face his toughest task yet when he takes office in May and has to deal with the ire of China which has repeatedly denounced him as a dangerous separatist.

Mr. Lai, who won Saturday’s election, repeatedly said during the campaign that he wanted to keep the status quo with China, which claims Taiwan as its own, and offered to talk to Beijing.

“We don’t want to become enemies with China. We can become friends,” Mr. Lai, widely known by his English name William, told a Taiwanese television station in July.

But in Beijing’s view, Mr. Lai, 64, is a separatist and “troublemaker through and through” for comments he first made in 2017 as premier about being a “worker” for Taiwan’s formal independence — a red line for Beijing.

The next year he told parliament he was a “practical worker for Taiwan independence,” causing one Chinese newspaper, the widely read Global Times, to call for China to issue an international arrest warrant for Mr. Lai and prosecute him under China’s 2005 Anti-Secession Law.

Mr. Lai maintains he simply meant Taiwan is already an independent country. On the campaign trail he stuck by President Tsai Ing-wen’s line that the Republic of China — Taiwan’s formal name — and the People’s Republic of China are “not subordinate to each other.”

Under Taiwan’s constitution the Republic of China is a sovereign state, a view shared by all Taiwan’s main political parties. The Republic of China government fled to Taiwan in 1949 after losing a civil war to Mao Zedong’s communists, who set up the People’s Republic.

What worries Beijing is the idea that Mr. Lai could try to change the status quo by declaring the establishment of a Republic of Taiwan, which Mr. Lai has said he will not do.

“I think China hates him, really hates him,” said Wu Xinbo, an international relations professor at Shanghai’s Fudan University. “It is because if he is elected as the leader of Taiwan, he may come to advance his goal of Taiwan independence, which will provoke a crisis across the Taiwan Strait.”

Still, while China has announced sanctions on several senior Taiwanese officials, including Mr. Lai’s running-mate Hsiao Bi-khim, Taiwan’s former de facto ambassador to the United States, it has not done so for Mr. Lai, perhaps indicating Beijing does not want to totally shut the door to one day having talks with him.

‘CHILL OUT’
During the campaign, Mr. Lai said he would stick to President Tsai’s path of proffering talks with China and maintaining peace and the status quo, while also pledging to defend the island and reiterating only its people can decide the island’s future.

Stephen Tan, managing director of the International Policy Advisory Group in Taipei, said Mr. Lai’s platform was similar, if not identical, to that of Tsai, who is barred from seeking re-election after serving two terms.

“I would not envision from his policy and administration a big change in direction for both domestic and foreign policies,” Mr. Tan said.

Mr. Lai is from a humble background in northern Taiwan, the son of a coal miner who died when the president-elect was a small child. A physician, the younger Mr. Lai specialized in spinal cord injuries.

He became Ms. Tsai’s vice president in 2020 when they won in a landslide warning of the threat to Taiwan from China given Beijing’s crackdown on anti-government protests in Hong Kong.

Since then, China has massively ramped up military drills near Taiwan and held war games in August 2022 and last April in response to Taiwanese engagement with the United States.

Taiwan officials said this week they expected China to attempt to put pressure on the incoming president, including with military drills near Taiwan, before Mr. Lai takes office.

In May, at a question-and-answer session with students at his alma mater, National Taiwan University, Mr. Lai said the head of state he would most like to have dinner with is Chinese President Xi Jinping, whom he would advise to “chill out a little.”

China’s Taiwan Affairs Office said his comments were “weird” and “deceitful,” given that his “Taiwan independence nature” had not changed.

Beijing has demanded Taiwan’s government accepts that both sides of the Taiwan Strait belong to “one China,” something Ms. Tsai and Mr. Lai have refused to do. — Reuters

Biden: US does not support Taiwan independence

January 14, 2024 | 4:45 pm

WASHINGTON — US President Joseph R. Biden said on Saturday the United States does not support the independence of Taiwan, after Taiwanese voters rebuffed China and gave the ruling party a third presidential term.

Earlier in the day, the Taiwanese ruling Democratic Progressive Party’s (DPP) presidential candidate Lai Ching-te came to power, strongly rejecting Chinese pressure to spurn him, and pledged both to stand up to Beijing and seek talks.

“We do not support independence…” Mr. Biden said, when asked for reaction to Saturday’s elections.

The United States switched diplomatic recognition from Taipei to Beijing in 1979 and has long said it does not support a formal declaration of independence by Taiwan. It does, however, maintain unofficial relations with the self-governed island and remains its most important backer and arms supplier.

Beijing, which has never renounced the use of force to bring Taiwan under its control, fears that Mr. Lai could declare the establishment of a Republic of Taiwan, which Mr. Lai has said he will not do.

Mr. Biden has previously upset the Chinese government with comments that appeared to suggest the United States would defend the island if it were attacked, a deviation from a long-held US position of “strategic ambiguity.”

His comments on Saturday appear to be an effort to reassure Beijing.

Even so, Washington warned just hours ahead of the polls opening that “it would be unacceptable” for “any” country to interfere in the election.

Taiwan, which neighboring China claims as its own, has been a democratic success story since holding its first direct presidential election in 1996, the culmination of decades of struggle against authoritarian rule and martial law.

US Secretary of State Antony Blinken congratulated Lai Ching-te on his victory and said the United States “is committed to maintaining cross-strait peace and stability, and the peaceful resolution of differences, free from coercion and pressure.”He said the US looks forward to working with Mr. Lai and leaders of all parties in Taiwan to advance their “longstanding unofficial relationship, consistent with the US one China policy.”

The Biden administration has feared that the election, transition and new administration would escalate conflict with Beijing.

Mr. Biden has worked to smooth relations with China, including agreeing to talk through differences on security matters at a California summit with President Xi Jinping in November.

Taiwan’s government expects China to attempt to put pressure on its incoming president after the vote, including staging military maneuvers near the island this spring, two senior government officials said. China has never renounced the use of force to bring Taiwan under its control.

In a show of support for the government, Mr. Biden plans to dispatch an unofficial delegation to the self-governed island, according to a senior Biden administration official.

The delegation is likely to include some former high-ranking American officials, according to the official, who said the names have not been finalized. Similar delegations have been sent to Taiwan in the past.

China was angered in 2016 when then-President-elect Donald Trump spoke by phone with President Tsai Ing-wen of Taiwan, the first such conversation between US and Taiwan leaders since President Jimmy Carter switched diplomatic recognition from Taiwan to China in 1979. — Reuters

All Ecuador prison staff held hostage by inmates now free, officials say

January 14, 2024 | 4:44 pm

QUITO — All prison staff held by inmates at prisons in Ecuador amid a sharp uptick in violence had been freed by Saturday evening, the SNAI prisons agency said.

The hostages, which SNAI previously said were 158 guards and 20 administrative staffers, were held since last Monday in at least seven prisons as a security crisis escalates in the South American country.

President Daniel Noboa on the social media platform X congratulated SNAI, police and armed forces for the successful release of the prison staff.

There would be an investigation to determine those responsible for the hostage-taking, SNAI said in its statement.

SNAI reported incidents at several prisons earlier Saturday, including an armed confrontation with inmates at the prison in El Oro province that resulted in the death of a guard.

Ecuador is grappling with a security crisis that worsened this week with the on-air storming of a TV station, unexplained explosions in several cities and the kidnapping of police officers.

Armed groups appear to be reacting to Noboa’s plans to tackle the dire security situation, according to the government.

The police and the armed forces were continuing to carry out operations around the country. More than 1,000 people have been arrested since a state of emergency began on Monday, the government said. — Reuters

US climate envoy John Kerry to leave Biden administration

January 14, 2024 | 4:43 pm

WASHINGTON — Former U.S. senator and secretary of state John Kerry will leave his post as President Joe Biden’s special climate envoy after three years but will help Biden’s re-election campaign, two administration sources said on Saturday.

The decision by Kerry, 80, comes a month after he played an instrumental in helping broker an international agreement announced in Dubai for nations around the world to transition away from fossil fuels.

He informed his staff on Saturday about his decision after speaking with Biden on Wednesday, one of the sources familiar with the situation told Reuters, speaking on condition of anonymity. The administration has made no decisions about who may be selected to replace Kerry, the source said.

The sources said Kerry would leave the position later this winter.

Kerry, as secretary of state under Democratic former President Barack Obama, also helped broker the 2015 Paris climate agreement in which nations committed to steps to combat climate change. Kerry previously served as a Democratic senator from Massachusetts and was his party’s 2004 presidential nominee, losing to Republican incumbent George W. Bush.

Axios first reported Kerry’s plans.

Kerry, a long-time advocate on climate issues, was among the first senior officials who Biden, a Democrat, appointed after winning the 2020 presidential election. Biden, seeking re-election in November, tasked Kerry with restoring American engagement in international climate negotiations after Republican former President Donald Trump withdrew the United States from the Paris agreement.

Kerry, whose appointment as special envoy on climate change did not require U.S. Senate confirmation, has a seat on the National Security Council in the White House, marking the first time an official on that body was dedicated to the climate issue.

In an interview with Reuters in December after COP28, Kerry said he had not made up his mind about his future but said no matter what, he would not take his eyes off of climate advocacy.

“I will continue as long as God gives me the breath and work on it one way or the other,” Kerry said of climate advocacy.

Among Kerry’s top priorities as Biden’s special envoy had been to maintain close diplomatic ties with China on climate change, even as numerous other political and trade tensions simmered.

Kerry and his Chinese counterpart Xie Zhenhua were instrumental in getting nearly 200 countries to agree to the Paris agreement and UAE Consensus through bilateral agreements they reached. The two worked through some of the thornier issues such as whether developing countries should be responsible for reducing emissions and how countries should commit to moving away from fossil fuel use.

China on Friday announced it had named Liu Zhenmin, a former vice foreign minister, as its new special envoy for climate change after Xie, 74, stepped down due to health reasons. — Reuters

Banyan Tree arrives in the Philippines in the integrated luxury golf development, Hann Reserve

January 13, 2024 | 12:25 am

Asia’s leading hospitality group, together with Hann Resorts, announces plans to redefine luxury through a signature nature-integrated approach tailored for families and leisure travelers

Banyan Tree is set to debut its first resort in the Philippines within a sprawling 450-hectare project in New Clark City, Tarlac. Envisioned to become the ultimate luxury sanctuary north of Metro Manila, Banyan Tree and Hann Resorts broke ground for the property at the Hann Reserve master-planned luxury lifestyle integrated resort.

From left: Hann Hotels Vice President Tarek Aouini; Hann Philippines Vice President for Real Estate and Property Development Neki Liwanag; Accor Vice President for Development Chris Cho; Banyan Tree Senior Vice President Philip Lim; Bases Conversion and Development Authority Chairman Delfin Lorenzana; Banyan Tree CEO Eddy See; Hann Philippines Chairman & CEO Dae Sik Han; Bases Conversion and Development Authority President Joshua Bingcang; Raffles Fairmont Cluster General Manager Bernd Schneider; Ennismore Senior Vice President Francois Baudin; Accor Senior Vice President of Operations Sylvain Pasdeloup; Tarlac Governor Susan Yap

Slated to debut in 2026, the highly acclaimed Hann Reserve is situated within a 15-minute drive from the newly developed Clark International Airport and a convenient two-hour drive from Manila. The estate project will feature exclusive PGA-affiliated player development facilities alongside three 18-hole championship golf courses, clubhouses, a mixed-use commercial centre, premium villas and residences, a 10-hectare public park, and a collection of luxury resorts.

The ceremonial groundbreaking was attended by Banyan Tree CEO Eddy See, Ennismore Senior Vice President Francois Baudin, Hann Resorts Chairman and CEO Dae Sik Han, together with Accor Senior Vice President of Operations Sylvain Pasdeloup, Accor Vice President for Development Chris Cho, BCDA Chairman Delfin Lorenzana, and Tarlac Gov. Susan Yap. The ceremony was then followed by an intimate press briefing for the local press, as well as a celebration attended by DOT Under Sec. Shereen Gail Yu-Pamintuan and BCDA President Jake Bingcang among others at Swissotel Clark.

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“Hann Reserve is a game-changer for luxury travel in the Philippines. With the breathtaking beauty of New Clark City as our backdrop and the synergy of Hann Resorts with Banyan Tree as the driving force, we are proud to present a landmark development that offers an unparalleled golfing and leisure experience for discerning travellers of all kinds,” said Dae Sik Han, Chairman and CEO of Hann Resorts.

“We are excited for this development as we have always believed that Central Luzon can be one of the premier tourist destinations in the country. Tourists are seeking more authentic experiences and this is exactly what Banyan Tree is all about,” affirmed DOT Undersecretary Pamintuan.

For its part, BCDA President Jake Bingcang said: “It is something that will not only make Clark very proud but the entire country as well, as it will be the first of its kind in the Philippines. Rest assured that we at BCDA will provide full support to make sure Hann finds success in this big vision for the country.”

Eddy See, CEO of Banyan Tree Group, expressed his excitement about being part of the Philippines’ newest ultra-luxe leisure destination. “Although people associate Banyan Tree with luxury, one of the key things that is very important is the sense of emotion—the sense of feeling connected to the place through experiences that evoke memories that you will always remember for many years to come. Sense of place is very fundamental concept for any Banyan Tree development, and we have found it in Hann Reserve,” he said.

Banyan Tree: Sanctuary for the Senses

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An internationally awarded hospitality brand known for its dedication to wellbeing and sustainability, Banyan Tree New Clark City will offer guests a sanctuary for the senses, providing a rejuvenating destination for families and friends.

Nestled in the lush greenery of Tarlac, the luxury property will feature fifty high-end pool villas in one- and two-bedroom configurations, designed in Banyan Tree’s signature nature-integrated style. The spacious 106-sqm villas will combine alfresco relaxation areas with plunge pools, sun decks, and inviting indoor living spaces, and offer access to leisure facilities including a central swimming pool, health club, and tropical garden spa featuring the signature rainforest hydrothermal experience. A Banyan Tree Gallery will retail local and handmade crafts, and there will be dedicated event spaces and dining options that include the Group’s award-winning Thai restaurant, Saffron.

“The design of Banyan Tree Clark revolves around principles that are ecological yet naturally luxurious, where we express our respect for the local environment through creative design, architecture and green building practices. We also preserve the cultural integrity of the land and its people by exerting conscientious effort to preserve indigenous flora and fauna,” said Hann Philippines Vice President for Real Estate and Property Development Neki Liwanag.

Cultural Inspiration and Unparalelled Luxury

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Guided by the design principles of ecological sustainability, natural luxury, and cultural sensitivity, Banyan Tree Clark architecture draws inspiration from the vibrant heritage of the Philippines, particularly the provinces of Tarlac and Pampanga. The resort brings the folklore of the Sun and the Moon to life through meticulously designed villas, crafted with eco-friendly and sustainable materials. These architectural marvels seamlessly integrate with the surroundings, while the landscape design spanning 60 hectares honors the region’s agricultural legacy with its indigenous flora and fauna.

Banyan Tree Clark offers a truly luxurious experience, immersing guests in a distinct sense of place. The resort carefully curates authentic and memorable experiences that celebrate the natural landmarks of Pampanga and Tarlac, prominently featuring Mt. Arayat and Mt. Pinatubo. Within its embrace, a genuinely inclusive community thrives, as the property prioritizes the employment of qualified locals and indigenous people of Tarlac and Pampanga, from construction to day-to-day operations.

As part of a long-term strategic partnership agreement between Accor and Banyan Tree Group signed in 2016, Banyan Tree New Clark City will be co-managed by Banyan Tree Group and Accor. For more information about Banyan Tree New Clark City, visit www.banyantree.com.

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Philippines to use nonmonetary tools to tame prices — Marcos

January 12, 2024 | 7:15 pm

By Kyle Aristophere T. Atienza
Reporter

The Philippines will use nonmonetary measures including plugging supply gaps to stabilize prices this year, President Ferdinand R. Marcos, Jr. said on Friday after appointing a new Finance chief.

Finance Secretary Ralph G. Recto was ordered to “devise strategies that will tame inflation through a bastion of responses,” the President told a news briefing at the presidential palace, where the Finance chief took his oath.

Mr. Marcos said the government would stick to fiscal discipline under Mr. Recto, a former senator who pushed higher value-added taxes in the early 2000. He was serving as Batangas congressman before his appointment.

“When the seductive call of populism beckons, I am sure that Secretary Recto will counsel us on the merits of fiscal discipline, to remind us of the price tag of dreams and to stick to the kind of stewardship that bequeaths no huge generational debt for our children,” he said.

Runaway inflation forced global central banks to drive up interest rates to the fastest in decades last year, though the World Bank last month said prices are poised to continue easing in the coming months.

Philippine inflation averaged 6% last year compared with 5.8% a year earlier, marking the second straight year that the Bangko Sentral ng Pilipinas (BSP) breached its 2-4% target.

Mr. Marcos said he had also asked Mr. Recto to be at the forefront of the government’s anti-smuggling drive. The government would pursue tax cheats “starting with the habitual ones who have [turned] tax evasion not just into an art but into a business.”

Benjamin E. Diokno, Mr. Recto’s successor, would return to the BSP as a Monetary Board member after declining an appointment to the Philippines’ first sovereign wealth fund, the President said. Mr. Diokno was BSP governor for years under ex-President Rodrigo R. Duterte.

“The fiscal policies will remain the same,” the President said. “The fiscal discipline will remain the same. However, we are looking to see if there are any new ways to handle that.”

Mr. Recto should focus on further taming inflation while enforcing measures to increase household income and spending, said Terry L. Ridon, a public investment analyst and convenor of InfraWatch PH.

He said the new Finance chief should also strengthen private sector participation in the state’s flagship infrastructure projects.

Mr. Recto told the same briefing he would ensure that the government hits its revenue goal of P4.3 trillion this year. “You have a national development plan to fund. Incidentally, we will be borrowing P2.7 trillion next year.”

The Finance chief said the Marcos government would ensure that the Senate passes priority tax measures approved by the House of Representatives.

‘POLITICAL SKILLS’

Mr. Recto, the grandson of the late Filipino statesman Claro M. Recto, lost his Senate reelection bid in 2007 after pushing to raise value-added taxes by 2 points to 12%.

Then-President Gloria Macapagal-Arroyo appointed him director-general of the National Economic and Development Authority in 2008 but left a year later to prepare for his senatorial run in 2010. He served as a senator from 2010 to 2022.

“Ideologically, Secretary Recto will continue to pursue neoliberal programs by strengthening the role of markets and minimizing the regulatory role of the state,” Gary Ador Dionisio, dean of the De La Salle – College of Saint Benilde School of Diplomacy and Governance, said in a Facebook Messenger chat.

“He became NEDA secretary but he’s also a politician,” Foundation for Economic Freedom President Calixto V. Chikiamco said in a Viber message. “He needs to use his political skills to get critical fiscal measures passed by Congress.”

At the briefing, Mr. Marcos said El Niño and geopolitical risks could “trample” the optimistic growth outlook for the Philippines, which grew by 5.9% in the third quarter. “Abroad, escalating geopolitical tensions could dampen global trade, tighten global financing, as well as trigger fuel and food shocks that could tow inflation back up.”

“That is why we are watching it very, very closely,” he said. “There is the distinct possibility of the beginnings of El Niño starting now and extending until the end of the first quarter, or perhaps even extending into the second quarter.”

The Philippine leader called for timely interventions “so that food prices will not surge as a result of farm outputs falling short.”

“The question is whether this replacement is going to matter at all,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said via Messenger chat. “Unless there are significant and comprehensive reforms in the structure of the economy, none of these is going to matter.”

Middle East escalation tilts balance of risks in markets

January 12, 2024 | 4:39 pm

Armored personnel carrier-silhouette — AN ARMORED personnel carrier (APC) is seen silhouetted as the sun sets near the Israel-Gaza border, in Southern Israel, Dec. 25, 2023. — REUTERS

For global investors who came into 2024 with doubts about how long stock markets can rally and when central banks will cut rates, a sudden widening of the war in Gaza is swaying the narrative and could prompt them to cut exposure to risk.

Market reactions were initially restrained on Friday to news that the United States and Britain had launched strikes against Houthi military targets in Yemen in response to the movement’s attacks on ships in the Red Sea.

However, oil climbed MKTS/GLOB while US Treasuries and stock markets tensed after the strikes.

Investors will be seeking to reduce exposure to riskier markets and adding to safe havens as they wait to see how the Middle East situation develops, particularly the disruption to oil supplies and trade, analysts said.

“Markets are on edge as risks of an escalation have risen,” said Charu Chanana, head of currency strategy at Saxo in Singapore.

“It will be particularly important to watch any further actions from either side especially going into the long weekend for the US, and particularly the threat of a wider regional conflict. With near-term focus on geopolitical escalation risks, yen and gold could see safe-haven buying.”

The odds are high. The strikes by the United States and Britain are the first on Yemeni territory since 2016, taking tensions several notches higher in the Israel-Hamas war raging since October.

The Iran-aligned Houthis, who control much of Yemen, have been attacking ships passing through the Red Sea for weeks in what they say is a response to Israel’s war in Gaza.

Although Washington said there was no intent to escalate tensions, the Houthis have vowed to retaliate to any attack.

In December, an Iranian Revolutionary Guards commander said the Mediterranean Sea could be closed if the United States and its allies continued to commit “crimes” in Gaza.

ANZ’s head of research for Asia, Khoon Goh, said freight rates had already risen over the past few weeks due to the shipping disruptions.

“If this strike is able to resolve the issue and shipping lanes can be secured again and things normalize, then that’ll be positive as we’ll see a normalization of freight rates,” he said.

“The concern is that if this starts to escalate…which will cause a potential spike up in oil price in particular, and further disruptions in shipping lanes.”

DIVERSIONS

Weeks of disruptions in the Suez Canal, which handles about 12% of worldwide trade, have already hurt businesses.

Global trade declined by 1.3% from November to December 2023 as militant attacks led to a plunge in the volumes of cargo transported in the Red Sea region, German economic institute IfW Kiel said on Thursday.

Shipping giants such as Maersk and Hapag-Lloyd have been sending their vessels on longer, more expensive journeys around South Africa’s Cape of Good Hope. German logistics giant DHL Group has advised customers to manage inventories differently.

How far fuel and shipping costs rise plays more immediately into market expectations of a stock market rally, which are based on the view the US economy will avoid recession and the Federal Reserve, European Central Bank and other global banks will cut rates this year.

“There will be a shift back towards risk aversion. This hasn’t fully blossomed out into a proper risk-off mode,” said Rob Carnell, head of Asia-Pacific research at ING of the air strikes.

“I think people are looking for a little bit of safety at the moment. So I think the bond market’s probably the clearest indication of where things are going.”

Oil prices indicated by Brent future are up 9% since mid-December, and jumped 2.0% to $79.00 a barrel on Friday. Gold was more muted, as were bond yields.

Ten-year Treasury yields barely budged, staying just under 4%. Expectations of rate cuts have driven their yields down a full percentage point in about two months.

“A significant escalation is likely to have notable market impact,” said Josh Crabb, head of Asia-Pacific equities at Robeco in Hong Kong, but “the probabilities are hopefully low.” – Reuters

India’s Dec. palm oil imports jump to 4-month high

January 12, 2024 | 4:33 pm

oil-palm-287899_1920 — STOCK PHOTO | Image by Bishnu Sarangi from Pixabay

India’s palm oil imports surged to their highest in four months in December, driven by increased purchases of refined palmolein due to competitive prices, a leading trade body said on Friday.

Higher purchases by the world’s biggest importer of vegetable oils could help lower palm oil stocks in top producers Indonesia and Malaysia and support benchmark futures.

The Solvent Extractors’ Association of India (SEA) reported a 2.8% rise in December palm oil imports to 894,186 metric tons, with refined palm oil imports soaring by 47% to 251,667 tons.

The negative refining margin for crude palm oil in India, coupled with lower prices offered by exporting countries for refined palm oil, made it an attractive option for buyers.

The landed cost of refined bleached deodorized (RBD) palmolein at Mumbai port was approximately $25 per ton lower than crude palm oil, dealers said.

In addition to palm oil, sunflower oil imports more than doubled in December, reaching 260,850 tons, the highest in three months.

This, along with increased palm oil imports, contributed to a 12.9% month-on-month rise in India’s total vegetable oil imports to 1.31 million metric tons.

Soy oil imports in December rose by 1.8% to 152,650 tons, although significantly below the average imports of 306,000 tons in the last marketing year.

Negative refining margins and a higher premium over rival oils were cited as contributing factors.

“Even in January, we could witness higher imports of refined palm oil because of lower prices. Total palm oil imports could rise above 900,000 tons,” said a Mumbai-based trader.

India sources palm oil primarily from Indonesia, Malaysia, and Thailand, while soy oil and sunflower oil imports come from Argentina, Brazil, Russia and Ukraine. – Reuters