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Spain’s paella rice could ‘disappear,’ say farmers angry at EU rules

(MADRID — A Spanish rice variety traditionally used to make paella is under threat from a fungus after the European Union (EU) banned a pesticide farmers said they relied upon, in another example of how the bloc’s environmental rules are angering growers.

Three rice producers in the Valencia region said their harvest of arroz bomba, or bomb rice, a variety grown almost exclusively in Spain, was half the 10-year average in 2023 as a result of the Pyricularia fungus which causes rice blast disease.

Bomba rice “is very likely to disappear,” said Miguel Minguet, a rice farmer in the Albufera Natural Park in Valencia. “Our crop is going to be lost to regulations.”

Meanwhile, major exporters such as Brazil, India, and Cambodia are widely using the pesticide to protect their own crops.

Farmers across Europe have staged angry protests against the EU over restrictions they say hand an advantage to outside competitors. Spanish farmers have been protesting across the country this week.

The clashes are exposing the EU’s struggle to reconcile its sustainability drive with its aim of becoming more self-sufficient in food production amid disrupted supply chains.

The European Commission has been forced to backpedal, with President Ursula von der Leyen on Tuesday proposing the withdrawal of the EU’s plan to halve the use of pesticides.

SMALL TRACES
The EU in 2018 stopped authorizing tricyclazole because it ruled it could be harmful to human health.

It had been relied upon for 40 years to combat the fungus affecting bomba rice in Spain’s wetlands, the farmers said.

What angers farmers perhaps the most is that the EU still allows imports to have small traces of the fungicide.

“There’s one set of rules for Europe and another for those producing outside,” said Emilio Gonzalez, a professor at the School of Agricultural and Forestry Engineering at the University of Cordoba.

Imported goods need to respect residue levels set by the EU, a spokesperson for the European Green Deal team said.

The levels “ensure the products are safe for human consumption,” they said.

Farmers in the Albufera wetlands are still able to use at least two other fungicides to protect rice production, which filter into the ecosystem and affect shrimp populations, according to a 2023 study led by Andreu Rico, a researcher in biodiversity at the University of Valencia.

Rice is “an intensive monoculture where the disease spreads easily from one field to another,” Rico said.

The decline in bomba rice production has caused the price to double in three years, selling for more than five euros ($5.39) a kilo in retailers such as Carrefour or Ahorramas.

Spain’s biggest supermarket chain Mercadona confirmed shortages in recent months but supply “is gradually recovering in almost all our stores in Spain,” it said.

Bomba rice rather than other varieties is popular for cooking paella, a rice dish most typically made with rabbit, chicken, green beans, and butter beans, because it “expands like an accordion” when heated meaning it’s difficult to overcook, said Rafael Vidal, a well-known paella chef who offers classes in cooking the dish at his restaurant near Valencia. — Reuters

Israeli water treatment company eyes opportunities in PHL

UNSPLASH

ISRAEL-BASED water treatment company IDE Technologies Group is eyeing expansion opportunities in the Philippines, the company’s chief executive officer (CEO) said on Wednesday.

“We’re focusing on a specific project, but that project is kind of a very interesting opening for us because it will involve creating a local entity of IDE with mostly local people as employees,” IDE CEO Alon Tavor said during a media briefing.

“We have teamed up with several local partners to come up with very interesting projects,” he added.

IDE is a water company that specializes in the development, engineering, construction, and operation of enhanced desalination and industrial water treatment plants.

Desalination is the process of removing salt from seawater to make it potable, safe for human consumption.

Founded in 1965, it has headquarters in Israel, with offices in the USA, China, India, Chile, and Australia, facilitating client partnerships across the globe. The company has over 400 plants spanning 40 countries.

“We don’t only sell projects. A lot of the time, we own the plant, we operate it, and we simply sell water as a solution,” Mr. Tavor said.

Investing in projects typically starts at “a few hundred thousand dollars for a very small project and can go up to hundreds of millions of dollars for large projects,” he also said.

“We see the fact that the Philippines realizes the level of water issues that need to be managed as an interesting opportunity for us, and therefore we’re here.”

Israeli Ambassador Ilan Fluss said they are looking into bringing more companies to the Philippines to share their best practices and technologies.

“On the water sector, we have some Israeli companies who are active in the Philippines, but I have to say not enough and what [is] seen now is… water in the Philippines has become an important issue,” Mr. Fluss said. — Sheldeen Joy Talavera

48 Hours: Touring Addis Ababa with star chef Marcus Samuelsson

THE KITCHEN of marcus addis. — MARCUSADDIS.COM

NEW YORK — When you think of business travel, you might think of typical locations like London or New York City or Dubai.

But here is a unique idea to explore: Ethiopia’s Addis Ababa.

That is the favorite haunt of celebrity chef Marcus Samuelsson. While Mr. Samuelsson first shot to fame as executive chef of New York City staple Aquavit, today he heads up a family of restaurants that includes Red Rooster Harlem. And Mr. Samuelsson recently launched the restaurant Marcus Addis in the land of his birth.

For Reuters’ 48 Hours series, we recently spoke with Mr. Samuelsson, who showed us how to spend a couple of unforgettable days in Africa. The following interview is edited and condensed.

WHAT I LOVE MOST
Addis is such a vibrant city both day and night. You can see that the city is on a journey — you’re constantly being pulled between past, present, and future. I especially love the balance between modern and traditional in the city’s style, architecture, music, and more. You see historic marketplaces next to new skyscrapers.

There are so many young, local talents invested in the future of Addis who play off of this balance of new and old to create beautiful crafts. One of my favorite fashion designers, Mahlet Afework, has a shop called Mafi Mafi (Guinea Conakry St. & Jomo Kenyatta Ave.) where her designs are really elevating the Ethiopian fashion industry by blending traditional prints with modern style.

WHERE TO STAY
I like to stay at the Hyatt Regency (Meskel Square) because it’s clean and consistent. It’s close to everything that’s going on in Meskel Square and — of course — my restaurant.

BEST PLACE FOR TEAM MEETINGS
I always meet with the team at Marcus Addis. We’re a new restaurant and spending time in our space is so important at the beginning so we can get to know each other and our environment. I really believe the best hospitality starts internally, and that means creating a positive and warm working environment.

It’s also a great place to meet, so we can be in and out of the kitchen trying new dishes for our menu. And the amazing view doesn’t hurt — we’re on the 47th floor of the Commercial Bank of Ethiopia Headquarters tower (Ras Desta Damtew St.)!

TOURIST TRAP THAT’S ACTUALLY WORTH IT
The National Palace (Yohanis St.) is a significant cultural institution that is definitely worth the trip. My wife and I hope to bring our children with us to Ethiopia soon, and we’ll definitely take them to Unity Park on the National Palace compound, which has a great zoo.

One of my favorite spots is the Addis Skatepark (Woreda 3 Youth Center), where the Ethiopian Girl Skaters meet every Saturday morning to show off their skills. Or — if you’re looking for a scenic day trip — the Wenchi Crater Lake (Lake Wonchi), which used to be an active volcano, is another beautiful place to experience nature.

IDEAL COFFEE SPOT
Ethiopia is said to be the birthplace of coffee, so experiencing the traditional Ethiopian coffee ceremony is a cultural must in Addis. Slowing down and experiencing the whole process from roasting to grinding to ultimately drinking is so different from how we all tend to grab a cup to take on the go — just for the caffeine kick.

Tomoca Coffee (Seychelles St.), Hadero Coffee (Jacros — Salite Mehret Rd.), and Dukamo Coffee (Mafi City Center Mall, Cameroon St,) all have delicious, high-quality coffee.

FAVORITE AREA TO SHOP
Shiro Meda is one of the best markets to explore and to see the process of creating hand-woven cotton clothes for women. We often don’t get to see the craftspeople behind the clothing we wear, so I think it’s a really enlightening shopping experience.

CAN’T-MISS TREATS
Tej is Ethiopian honey wine. There’s a spot called Yod Abyssinia (Bole Medhaniyalem Area) where you can enjoy tej alongside a great local meal and traditional dancing.

Another indulgence is a spa treatment at Kuriftu Entoto Resort and Spa (Entoto Park). It has beautiful mountain views, so it’s just a relaxing experience surrounded by nature.

BEST DINNER SPLURGE
The Oriental (Meskel Square) is a delicious Thai fusion restaurant. It has a beautiful view of the square and is a great special-occasion spot. And then I like to head to the Black Rose (Africa Avenue) Lounge to keep the night going. They have a huge cocktail list, amazing music and a consistently lively atmosphere.

FAVORITE SOUVENIR
I always like to go to Merkato (Dubai Tera building, Addis Ketema district), which is the largest open-air marketplace, on my last day to get inspiration for my New York restaurant, Hav & Mar. It draws a lot of inspiration from my Ethiopian roots.

I always end up filling my suitcase, but the two staples are coffee beans and spice blends for friends, family and my own pantry back home.

BEST MEMORY
Opening our restaurant was an incredibly special experience for me and my wife. Our families came in from the surrounding villages to be with us for the opening celebration. It has been such a long time in the making. To be there with the team and the community, just taking it all in, was pretty surreal. — Reuters

New directions for human development in the Philippines

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HUMAN development revolves around elevating peoples’ capabilities, broadening the scope of their choices, upholding their freedom, and advocating for their human rights. This developmental concept transcends mere economic growth, placing people’s lives at its core.

In the Philippines, as in the whole Asia-Pacific region, human development has been a tale of progress, disparity, and disruption.

Today, we are faced with a convergence of escalating global tensions, deteriorating climate conditions, regional debt distress, and persisting inequality. This convergence is exerting considerable strain on development gains achieved in the past decades. This not only jeopardizes the attainment of the Sustainable Development Goals (SDGs), but also creates a potential for unprecedented setbacks in human development, economic stability, as well as climate resilience, unless prompt and extensive corrective measures are implemented.

The United Nations Development Program (UNDP) 2024 Regional Human Development Report (HDR) in the Philippines is launched at a time of great need. The 2024 Regional HDR delivers a compelling narrative: the Asia-Pacific region — known for its stellar economic performance and growth in the past decades — is home to half of the world’s multidimensionally deprived, totaling 500 million people. Across the region, approximately 800 million women are not part of the workforce, while roughly 1.3 billion people rely exclusively on informality for their livelihoods.

Aptly entitled “Making our Future – New Directions for Human Development in the Asia-Pacific,” the 2024 Regional HDR paints a qualified picture of long-term progress, but also persistent disparity and widespread disruption, foreseeing a turbulent development landscape and urgently calling for new directions to boost human development.

Over the last three decades, the Human Development Index (HDI) of the Asia-Pacific region has surged by 19 points — the greatest leap in the world. Rapid economic growth, an increase in adult literacy rates, and increased life expectancy rates have significantly contributed to major improvements in human development in the region. For the Philippines, the HDI score has increased from 0.598 in 1990 to 0.699 in 2021, growing over those three decades alongside the Asia-Pacific region’s trajectory. It declined slightly under the impact of COVID-19, keeping it within the group of countries with medium levels of human development. The Philippines ranks 7th in the ASEAN, 16th in the Asia-Pacific region, and 116th in the world.

Beyond the progress in the region, widespread disparities and persistent structural exclusion remain. Worsened by the pandemic and the rising cost of living amid global crises, persistent challenges of poverty and inequality, gender biases, and a large informal sector make it a challenge for the region to keep on track to achieve the SDGs by 2030.

To bring about the needed change, the report calls for three new directions in human development in the region: to put people at the heart of development, to recalibrate growth strategies to generate more jobs while keeping within planetary bounds, and to focus relentlessly on the politics of reform and the science of delivery to turn ideas into practice.

In the Philippines, these new directions can foster four major transformations, including: a larger and faster green economic and energy transition; strengthened resilience of families and communities from shocks and disasters; accelerated innovation and digital evolution as tools to accelerating and sustaining growth; and a more future-ready governance that can help to accelerate human development.

The Philippines can gain from decisively addressing the issues which prevent ordinary Filipinos from improving their lives through quality jobs and more secure livelihoods. As the Philippines is expecting to join the ranks of upper middle-income countries soon, a key challenge will be to tackle the lingering issues of precarity and inequality head-on. Doubling down on investments in education, health, and other human capital development needs will not only address a feeling of job insecurity among certain Filipinos, but also to further improve social mobility.

This new path also means strengthening the resilience of families and communities from shocks and disasters, which are becoming more frequent. Countries like the Philippines — which bear the brunt of climate change — face an existential crisis that can only be solved through urgent collective action at a global scale.

The Philippine government has wagered on innovation as a primary tool to accelerating and sustaining growth. However, to ensure that this growth benefits all Filipinos requires innovative approaches that are by their nature inclusive and driven by the grassroots. Innovation will need to contribute to transforming communities in “last mile” areas into effective levers of local development.

Finally, future-ready governance can help to accelerate change and human development in the Philippines. Delivering change requires making public institutions, especially at the local level, more fit for the needs, the pace of change, and the capacity to deliver prosperity to communities at risk of being left behind.

 

Dr. Selva Ramachandran is the UNDP Philippines resident representative.

Figaro Coffee plans to open more stores this year

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LISTED food and beverage restaurant operator Figaro Coffee Group, Inc. (FCG) aims to open additional stores across its various brands this year as part of its expansion plans, a company official said on Wednesday.

“The company is positioned to continue growth of its stores and brands nationwide to further expand its presence in the Philippines,” FCG Chief Financial Officer Jose Petronio D. Español said in a statement.

FCG opened 68 new stores across its brands last year, bringing its total store count at the end of 2023 to 203. These included 64 Figaro Coffee stores, 124 Angel’s Pizza stores, 10 Tien Ma’s Taiwanese cuisine stores, one Koobideh Kebabs store, and four Cafe Portofino stores.

As of Feb. 7, FCG operates 207 stores across all its brands.

FCG has reported a 7% increase in its net income to P195 million during the second quarter of its fiscal year ending in June, with revenue improving by 42% to P1.45 billion.

For the full year 2023, FCG recorded a 55% increase in total revenue to P5 billion from P3.2 billion in the same period the previous year.

“Despite global inflation challenges, FCG navigated 2023 successfully. The company optimized key expenses, reducing cost of goods sold to 32% from the previous year’s 38%,” Mr. Español said.

“The strategic management of financing costs, improving efficiencies, and utilizing economies of scale was instrumental in softening negative effects posed by inflationary pressures,” he added.

FCG has one subsidiary, Figaro Coffee Systems, Inc. (FCSI), through which it operates various brands such as Figaro Coffee, Angel’s Pizza, Tien Ma’s, Koobideh Kebabs Persian kebab chain, and Cafe Portofino cloud kitchen outlet, primarily serving a variety of food and pastries.

On Wednesday, FCG shares closed unchanged at 70 centavos per share. — Revin Mikhael D. Ochave

13 PHL properties receive FTG Star Awards

THIRTEEN properties in the Philippines were included in this year’s Forbes Travel Guide (FTG) Star Awards.

These include the Conrad Manila and the reopened Makati Shangri-La, both with 2024 Recommended ribbons. The Peninsula Manila, Nüwa Manila at City of Dreams, Okada Manila, and the Sky Tower at Solaire received five-star ratings. Other properties in the list, all with four-star ratings, were Raffles Makati, Shangri-la at the Fort, the Sofitel Philippine Plaza, Marco Polo Ortigas, Nobu Hotel Manila, and the Hyatt Regency Manila in City of Dreams.

Forbes Travel Guide said about Conrad Manila, “The luxury hotel’s unique architecture is inspired by the yachts frequenting Manila Bay. The sleek curves protruding toward the water and the clean white and pearl palette make the structure stand out among the properties lining the harbor.” As for the Makati Shangri-La, the Guide said, “Located a few steps away from the finest malls and restaurants in metro Manila, it’s a convenient place for tourists to stay and experience the best the city has to offer.”

Meanwhile, in a statement, City of Dreams pointed out that all three of the hotels in the entertainment complex made it. Nüwa Manila has earned its 7th five-star rating from the guide, while Nobu Hotel Manila and Hyatt Regency Manila have maintained their four-star Rating for seven consecutive years since 2018.

Lawrence Ho, Chairman and Chief Executive Officer of Melco (City of Dreams’ parent company), said, “Thank you to FTG for this great honor. The recognition underlines Melco’s ongoing commitment to providing guests with the most memorable world-class hospitality experiences across our global portfolio of integrated resorts. We will continue to further develop and enhance Melco’s curated blend of design, entertainment, and quality as we look forward to welcoming more guests from local, regional, and overseas markets this coming year.”

“This year’s Star Awards reflects the forecasted surge in demand for more thrilling travel experiences,” says Amanda Frasier, President of Ratings for Forbes Travel Guide. “They are delivering at the very top of their game and reimagining the future of luxury across design, dining, and well-being. Our 2024 winners include more special places to visit across the Middle East and Africa, with a record number of list additions for the region. We commend all the 2024 winners for continuing to deliver a fresh new guest experience.” — Joseph L. Garcia

The EV era

VECTORJUICE-FREEPIK

If Congress has its way, we might experience greater chaos on our roads, particularly in highly urbanized and densely populated areas like Metro Manila. More electric vehicles (EVs) of the two- and three-wheeled kind will probably populate our streets, adding to the congestion and confusion on our thoroughfares. That is, unless new regulations are also put in place to govern the use of such vehicles on public roads.

A lawmaker is proposing amendments to Republic Act 11697 or the Electric Vehicle Industry Development Act to include two- and three-wheeled vehicles in the law’s scope. This means electric motorcycles and tricycles and the like will also be entitled to tax incentives such as zero import duty until 2029, and other perks currently available only to electric cars.

House Bill No. 9573 proposes that duty exemptions will cover not just four-wheeled electric vehicles but also two-wheeled and three-wheeled electric vehicles as well as “such other vehicles with at least one electric drive for vehicle propulsion…[including] a BEV [battery electric vehicle], hybrid-electric vehicle, light electric vehicle, and a plug-in hybrid-electric vehicle…”

What I found odd is that the same bill provides that “in the case of imported electric jeepneys and electric tricycles, the Department of Finance, upon recommendation of the DTI, may suspend the [duty-free import] exemption in order to protect local manufacturers…” It is unclear to me why such exclusion has been made particularly for electric-powered public utility vehicles.

If there is one land transportation segment that needs updating, and preferably to electric, it is the public utility segment. Why should there be an option to suspend the privilege of their duty-free or tax-free importation? In fact, why should “local manufacturers” of electric jeepneys and electric tricycles, if any, require “protection” from imports?

What if electric jeepneys and electric tricycles made abroad, if any, are cheaper to source and quicker to deploy for local public utility operators? And what if local manufacturers, because of their inefficiencies and higher labor costs, end up making products that will be more expensive for local operators? What will be the parameters to trigger the need for their “protection” from imported electric vehicles?

If electric cars can be imported tax-free until 2029, then maybe the same should apply to all other types of vehicles running on electric or battery power. This seems to be fair. But why exclude electric jeepneys and electric tricycles? Is it because there are no local manufacturers of electric cars just yet, and there are already local producers of electric jeepneys and tricycles?

The duty-free exemption under the law is time-bound, anyway. It is only until 2029, if I am not mistaken. Perhaps the “protection” clause is unnecessary considering that it is already 2024 and, at best, the protection is good only for five years? Isn’t it better to allow the tax-free importation of all types of public utility vehicles running on electric power, but give incentives to local makers to make their products more competitive?

As for the ensuing chaos on our roads, it is certain that as soon as two-wheeler and three-wheeler EVs are exempted from import duties, there will be an influx of imports. And with the possible retail price drop, more people requiring mobility will turn to these types of EVs. For sure, these will be a lot cheaper than any electric car, which can cost at least P500,000 locally.

Moreover, with inexpensive electric bicycles, scooters, and similar types of personal mobility devices running on electric power becoming more readily available, many individuals will surely consider these alternatives to public transportation. Considering as well that such motorized EVs do not yet require government registration and operator licensing.

And this is why legislators should perhaps consider requiring additional regulation to govern the use of all types of EVs on our roads, and not just electric cars. There should be clear regulations and rules on the use of two-wheel and three-wheel EVs of all types, whether for carrying passengers or just for use as a personal mobility device. Otherwise, chaos on our roads is certain.

Just recently, the National Federation of UV Express went to court to force the government to take motorcycle “taxis” off the streets. The group, composed of UV Express operators, wants a Mandaluyong trial court to stop the ongoing government dry run temporarily allowing the use of motorcycles as public transportation.

Angkas, Joy Ride, and Move It are currently offering motorcycle taxi services under a pilot study of the Land Transportation Office (LTO). UV Express operators, in a report on GMA News Online, claimed that over a third of their revenues were already affected by these MC taxis, and adding more MC taxi operators would halve their revenues.

Other than directly competing with them for commuters, the UV Express operators also claimed that it was unfair for MC taxis to continue operating without franchises. Other public transportation like jeepneys and buses, UV Express, Grab cars, and even school and tourist buses, all secure franchises, at a cost, from the Land Transportation Franchising and Regulatory Board or LTFRB.

If memory serves me, the pilot study for MC taxis started in 2019. Angkas, I believe, started even before that. In short, MC taxis exist under a temporary permit. And Congress has not passed a law to regularize the operation of motorcycles as public transport. Tricycles are different as they get franchises from local governments and not the LTFRB.

And this is precisely the kind of situation that we wish to mitigate in the future when more EVs populate our streets. By removing import duties, we are opening the doors to more imported EVs on our roads. This should be matched with appropriate rules and regulations to govern their ownership and use. Safety of the public, and perhaps fare regulation in the case of public transport, should be the prime considerations.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

HONOR set to unveil latest foldable phone in PHL

HONOR Philippines is launching its latest foldable phone, the Magic V2, in the country next week, it said in a statement.

The HONOR Magic V2, which the company said is the world’s thinnest foldable phone, will be unveiled in the Philippines on Feb. 21.

“As HONOR’s latest premium foldable smartphone, the HONOR Magic V2 boasts a high-quality and highly capable foldable form factor, stunning display, all-day battery life, and flagship performance. This combination delivers a user experience that is truly unparalleled,” the smart devices brand said.

“Engineered to spur mainstream adoption, the HONOR Magic V2 is the thinnest and lightest book-style foldable smartphone to date, redefining industry benchmarks with significant improvements across form factor, battery, display, and user experience aspects,” HONOR Philippines Vice-President Stephen Cheng was quoted as saying.

The new foldable smartphone weighs 231 grams and is only 9.9 millimeters thick when folded, the company said.

The phone’s hinge uses titanium alloy and can stand over 400,000 folds, HONOR said. The Magic V2 is also made of nanocrystal glass that offers drop resistance.

The HONOR Magic V2 is powered by a 5,000mAh dual-cell silicon-carbon battery and supports fast charging, with a 66-watt SuperCharge charger included in the box.

It has a Snapdragon 8 Gen 2 octa-core processor, according to HONOR’s website, and runs on MagicOS 7.2 based on Android 13.

The phone’s main and external displays feature a 120Hz refresh rate and 3840 PWM Dimming technology.

The inner screen measures 7.92 inches, while the external display is 6.43 inches.

The HONOR Magic V2 has a triple rear camera system made up of a 50-megapixel (MP) wide lens, a 50-MP ultrawide camera, and a 20-MP telephoto lens. The phone also offers 40x digital zoom.

Meanwhile, it has a 16-MP wide front camera. — BVR

Cebu Landmasters gets shareholders’ nod for P5-B preferred shares offering

CEBULANDMASTERS.COM

CEBU Landmasters, Inc. (CLI) shareholders have approved the planned P5-billion preferred shares offering, the listed property developer announced on Wednesday.

The shareholders approved the offer during a meeting on Feb. 14, the company said in a disclosure to the stock exchange.

The offer consists of up to three million Series A preferred shares with an oversubscription option of up to two million Series A preferred shares at P1,000 each.

In January, CLI said that the net proceeds of the offer would be utilized to partially finance project development and capital expenditures, as well as for general corporate purposes.

“The offer shares which are redeemable starting on the 4th anniversary of the issue date, or on any dividend payment date thereafter, will be denominated as Series A-1 preferred shares, while those which are redeemable starting on the 7th anniversary of the issue date, or on any Dividend payment date thereafter, will be denominated as Series A-2 preferred shares,” the company said.

CLI is aiming to launch its first Luzon project by the second half. The first project will feature 2,000 homes spanning 25 hectares.

The property developer recently expanded its hospitality portfolio with the opening of lyf Cebu City hotel on Jan. 16. The newly opened hotel is the company’s third operational hotel.

CLI’s lyf Cebu City hotel offers 159 rooms with various sizes, including studio queen, studio twin, two-bedroom, and four-bedroom units.

For the first nine months, CLI recorded a 9% jump in its attributable net income to P2.4 billion from P2.2 billion, led by higher revenues across business segments.

CLI’s portfolio consists of residences, offices, hotels and resorts, mixed-use developments, and townships.

On Wednesday, CLI shares fell two centavos or 0.76% to P2.62 apiece. — Revin Mikhael D. Ochave

Term deposit yields inch down before BSP meeting

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YIELDS on term deposits auctioned off by the Bangko Sentral ng Pilipinas (BSP) edged lower on Wednesday ahead of the Monetary Board’s policy review and amid the government’s ongoing offer of retail Treasury bonds (RTBs).

Bids for the BSP’s term deposit facility (TDF) hit P353.976 billion on Wednesday, surpassing the P310 billion on the auction block and the P339.676 billion in tenders seen a week prior.

Broken  down, the one-week papers attracted tenders totaling P196.214 billion, above the P180 billion auctioned off by the BSP as well as the P170.523 billion in bids for a P160-billion offer the previous week.

Accepted yields for the seven-day deposits ranged from 6.57% to 6.6%, a narrower margin compared with the 6.56% to 6.612% seen on Feb. 7. With this, the average rate of the papers stood at 6.5873%, down by 0.16 basis point (bp) from the 6.5889% seen a week ago.

For the 14-day term deposits, bids totaled P157.762 billion, higher than the P130 billion on offer. However, it was lower than the P169.153 billion in tenders last week for P150 billion on the auction block.

Banks asked for returns ranging from 6.588% to 6.625%, a thinner band versus the 6.2% to 6.635% seen in the previous auction. This brought the average rate of the two-week deposits to 6.6111%, also down by 0.16 bp from the 6.6127% logged previously.

The BSP has not auctioned off 28-day term deposits for more than three years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the 28-day bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

TDF yields went down on Wednesday before the BSP’s first rate-setting meeting for the year, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The BSP is widely expected to keep its policy rate at a 16-year high of 6.5% for a third straight meeting this week, according to a BusinessWorld poll.

Analysts said the Monetary Board may keep rates steady amid upside risks to inflation and robust economic growth. It is also not expected to cut borrowing costs ahead of the US Federal Reserve.

Philippine headline inflation fell to 2.8% in January from 3.9% in December and 8.7% in the same month a year ago, marking the slowest print since the 2.3% in October 2020. It was also the second straight month that inflation was within the BSP’s 2-4% target.

TDF yields went down “amid the ongoing RTB offering,” Mr. Ricafort added.

“The huge RTB maturity by early March 2024 could lead to additional excess liquidity in the market, offset by any large RTB issuance,” Mr. Ricafort added.

The government raised an initial P212.719 billion from the RTBs following the rate-setting auction held on Tuesday. The five-year retail bonds fetched a coupon rate of 6.25%.

The final amount raised from the 30th tranche of RTBs could reach P400 billion amid strong demand and with the government also doing an exchange offer for three- and five-year retail bonds due to mature next month, Bureau of the Treasury Officer-in-Charge Sharon P. Almanza said on Tuesday. — Keisha B. Ta-asan 

OpenAI gets partial win in authors’ US copyright lawsuit

A FEDERAL judge in California has dismissed parts of a copyright lawsuit brought by comedian Sarah Silverman, Michael Chabon, Ta-Nehisi Coates and other authors against OpenAI over its alleged use of their books to train the large language model underlying its popular chatbot ChatGPT. US District Judge Araceli Martinez-Olguin on Monday granted most of Microsoft-backed OpenAI’s motion to dismiss many of the writers’ claims for now, rejecting their arguments that the content generated by ChatGPT infringes their copyrights and that the company unjustly enriched itself with their work.

Judge Martinez-Olguin joined other federal judges who have so far rejected allegations that the output of generative artificial intelligence (AI) systems violates the rights of copyright holders whose works were supposedly used to train them.

Courts have not yet addressed the core question of whether tech companies’ unauthorized use of material scraped from the internet to train AI infringes copyrights on a massive scale. OpenAI, Microsoft and other companies have said that their AI training is protected by the copyright doctrine of fair use and that the lawsuits threaten the burgeoning AI industry.

Representatives for the authors and OpenAI did not immediately respond to requests for comment on Tuesday.

Several groups of copyright owners including writers, visual artists, and music publishers have sued major tech companies over the alleged misuse of their work to train generative AI systems. The group of authors that includes Silverman, Coates, and Chabon sued OpenAI and Meta Platforms over their systems last year.

OpenAI argued in August that ChatGPT’s output is not similar enough to the authors’ books to violate their copyrights. Martinez-Olguin agreed on Monday that the authors “fail to explain what the outputs entail or allege that any particular output is substantially similar — or similar at all — to their books.”

Judge Martinez-Olguin gave the authors permission to file an amended complaint by March 13.

The authors asked the court last week to halt similar high-profile cases brought in New York by the New York Times and other writers including John Grisham, Jonathan Franzen, and George R.R. Martin, calling them “copycat” lawsuits. They filed related motions in the New York cases on Monday. — Reuters

The nuclear option for Asian industrialization

VECTORJUICE-FREEPIK

It was a successful forum we held last week on Feb. 8. The 2nd Ruperto P. Alonzo Memorial Lecture, “The Nuclear Option,” saw about 160 audience members filling the UP School of Economics (UPSE) auditorium. This was not counting the hundreds who tuned in via Zoom, YouTube, and Facebook.

The forum was organized and funded by the UPSE Program in Development Economics Alumni Association (PDEAA) and Philippine Center for Economic Development (PCED).

The main speaker was Energy Undersecretary Sharon Garin, and the emcee and moderator was UPSE alumnus Jay Layug, Jr., who is a Senior Partner of Divina Law. The five panelists were: geologist Dr. Carlo “Caloy” Arcilla, Director of the Philippine Nuclear Research Institute (PNRI); Froilan Savet, 1st Vice-President and Head of Networks of Meralco; Lino Bernardo, Head of Special Projects of Aboitiz Power; Paulo Pagaduan, Senior Lead of Renewable Energy and Just Transition, Asian People’s Movement for Debt and Development; and this writer.

Undersecretary Garin discussed the past, current, and future regulatory environments in the Philippines’ nuclear power development, with a best-case scenario being starting construction of the first nuclear plant by 2028, with it being operational by 2032. I hope this will materialize.

Doc Caloy explained the technical feasibility and security of nuclear energy, saying that most of the public’s fears about it are not based on actual experiences of its safety. The two engineers from the energy companies emphasized the need for power stability and reliability to solve the problem of power insecurity coming from intermittent sources. Mr. Pagaduan explained their advocacy for more renewable power sources and non-support for nuclear power. I discussed the links between nuclear power, security, and GDP growth performance of many countries.

I saw some good data from the World Nuclear Association on the number and capacity of currently operational nuclear power plants by country, power plants under construction, and those planned to be built soon. I added data on actual power generation from nuclear plants over the two-decade period 2002 to 2022. In dealing with the data, I arranged the countries into three: in Group A were the Americas, in Group B the Europeans, and in Group C the Asians.

The US and Canada lead in the Americas both in operational and planned nuclear plants; France and Russia lead in Europe, but France is de-nuclearizing with no new plants being planned while Russia will keep adding new nuclear capacity, huge at 23,500 megawatts (MW).

The Asians, led by China, and with the exception of Taiwan and Japan, will keep adding more nuclear capacity.

It is interesting to note that the United Arab Emirates (UAE), an oil-gas producer and exporter, has three operational nuclear plants and will build another one. Pakistan might soon leapfrog into becoming an industrializing country with six nuclear plants operational plus one being planned. And Bangladesh is currently building two plants with a huge capacity of 2,400 MW (see the table).

Saudi Arabia has two proposed nuclear plants with a capacity of 2,900 MW. They will follow the UAE model — use nuclear power to light their roads, and export more oil gas to earn more revenues.

Other Europeans with modest nuclear power generation in 2022 were: Switzerland with 23.1 TWH; Slovakia with 15.9 TWH; Bulgaria with 16.4 TWH; Hungary with 15.8 TWH; Romania with 11.1 TWH; Slovenia with 5.6 TWH; and the Netherlands with 4.2 TWH.

Now that the Philippine economy is growing fast, with low and declining inflation and unemployment rates, the momentum will be high and power demand will also be high over the short to long-term. Nuclear energy — cheap, stable, reliable, safe — can provide the necessary solution to high energy demand to sustain high economic growth and job creation towards the Philippines’ long-term industrialization.

Once again, I and the rest of the PDEAA board thank the three corporate sponsors of the UPSE PDEAA-PCED forum — Meralco, Aboitiz Power, and Robinsons Retail Holdings. Not for funding the forum but for donating funds for the future PDEAA room in the expanded and modernized UPSE building. Thank you, guys.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com