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Alternergy unit receives award for two wind energy projects

ALTERNERGY Holdings Corp.’s subsidiary has received the certificates of award for two wind power projects that it won under the second round of the green energy auction program of the Energy department.

In a media release on Monday, Alternergy President Gerry P. Magbanua described the confirmation by the Department of Energy and subsequently, the issuance of the certificates as “a critical milestone.”

These actions formally award the wind projects with 20-year off-take agreements with state-led National Transmission Corp. with a specific tariff.

He added that the award “is critical to our project lenders who are close to completing their due diligence with target financial closure by first quarter of next year.” 

The government’s green energy auction or GEA program is a competitive process of procuring renewable energy supply by offering capacities to qualified bidders at a set maximum or ceiling price.

According to its parent firm, Alternergy Tanay Wind Corp. (ATWC) has conducted competitive bidding for the equipment supply and construction contracts.

The company is targeting to complete the 86-megawatt (MW) Tanay wind farm in Rizal and the 55-MW Alabat wind farm in Quezon province by the second quarter of 2024.

Last week, ATWC said it had tapped K2 Management A/S, an independent wind and solar project management consultancy firm, as the “owner’s engineer” of the two projects.

It will support Altenergy in the procurement processes within a multi-contracting framework, followed by construction management, design reviews, site management, and quality control measures.

Alternergy aims to develop up to 1,370 MW of renewable energy sources such as onshore and offshore wind, solar, and run-of-river hydropower.

At the local bourse on Monday, shares of the company went down by two centavos or 2.67% to close at P0.73 apiece. — Sheldeen Joy Talavera

Scam activity involving credit card transactions to increase amid holidays

FREEPIK

SCAMMERS are expected to target both card and non-card transactions during the holiday season, with fraud activity seen growing until January, a study by Visa showed.

“Crooks prepare all year for the holiday shopping season, taking advantage of increased activity and consumers who let their guard down searching for the perfect gift,” Visa Country manager for the Philippines Jeffrey V. Navarro said in a statement on Monday.

Visa’s Holiday Edition Threats Report showed scam activity for card and non-card transactions are likely to rise between November 2023 and January 2024 amid an expected increase in both e-commerce and in-person shopping amid the holiday season.

In 2022, holiday fraud rates rose by 11% compared with the non-holiday fraud rate, Visa said.

Scams also rose by 8% during the holidays last year versus the same period in 2021.

Visa expects scammers to target account data from online merchants through digital skimming.

Developing technology, especially artificial intelligence (AI), allows threat actors to create customized phishing campaigns, making it harder for consumers to spot fakes, it said.

“Fraudsters also create phishing websites, often using malvertising (malicious advertising) and other illicit search engine optimization (SEO) tactics on retail or service websites to entice victims,” Visa said.

It urged cardholders to be careful when using automated teller machines or point of sale terminals as scammers are expected to target these. Scammers could also use fake one-time password templates to gain access to accounts.

Consumers should keep their belongings close when outside to keep their cards or phones, which contain their financial information, from being stolen, Visa added.

inDrive secures PHL regulatory nod

inDrive has secured accreditation from the Land Transportation Franchising and Regulatory Board (LTFRB) to offer its services in the Philippines, the global ride-hailing service provider said on Monday.

“We are thrilled to receive official accreditation from the LTFRB, a testament to our unwavering commitment to safety, reliability, and innovation,” said Roman Ermoshin, director for Asia-Pacific at inDrive, in a media release.

The company said its official accreditation from the LTFRB as a transport network company allows it to offer ride-hailing services in the country.

inDrive will serve the cities of  Bacolod, Baguio, Iloilo City, Cagayan de Oro, and Butuan, it said.

“The company is currently focusing on efforts to bolster its supply with driver recruitment initiatives before officially launching and expanding its services in the Philippines,” it added.

The company said its platform allows users more flexibility by allowing passengers to choose preferred drivers and vice versa.

“Similarly, drivers have the freedom to choose the most suitable rides. They will receive detailed ride requests, including fare, pick-up point, and destination, enabling them to select or ignore ride requests without penalties,” it said.

As part of its initial phase, the company said it is conducting a driver registration campaign in its target areas until yearend.

In Southeast Asia, inDrive operates in Indonesia, Malaysia, and Thailand before the company expands its presence in the Philippines. It currently operates in 45 countries. — Ashley Erika O. Jose

Why should any city want to host a World Expo?

By Gearoid Reidy

THE WORLD EXPO might have a quaint quality for many in the English-speaking world — recalling events such as the 1982 World’s Fair in Knoxville, Tennessee, perhaps most familiar through its appearance in The Simpsons, where the exposition’s symbolic Sunsphere has become a disused storage site for wigs.

But in large parts of the world, the exhibitions are still big business — and increasingly, politically fraught. The expo is considered by many governments to be, along with the Olympic Games and football’s World Cup, one of the “big three” events that can elevate a country’s global standing.

That was the goal of South Korean President Yoon Suk Yeol, whose country has hosted two of the three events and aimed to complete the trifecta with a 2030 Expo in the second city of Busan. Despite enlisting boyband BTS and Gangnam Style performer Psy, as well as meeting nearly 100 world leaders to bolster support, Busan’s bid was trounced by Riyadh in a vote last week that shocked the country, with Saudi Arabia claiming 119 ballots to 29. (Rome fared even worse, with 17.)

Riyadh’s oil wealth may have helped, with plans to spend $7.8 billion on the expo as the country touts itself as a tourism destination. Images from the disastrous World Scout Jamboree held in South Korea this summer won’t have helped. Nonetheless, Mr. Yoon’s administration is now facing serious political blowback, with the already unpopular leader forced into a humiliating apology. “Everything was due to my own shortcomings,” he told reporters. “I am very sorry for having disappointed the citizens of Busan, as well as the rest of the nation.”

Further east, officials in Japan’s second city of Osaka are facing similar concerns. Advance tickets went on sale last week for the 2025 World Expo, which starts in less than 500 days. The 1970 event there is fondly remembered for drawing a near-record 64 million visitors, with Taro Okamoto’s unnerving Tower of the Sun statue remaining an instantly recognizable icon of glories past. The city is trying to recapture that magic with Myaku-Myaku, a multi-eyed Lovecraftian monster serving as the expo’s immediately recognizable mascot.

But all’s not well. Amid soaring construction costs, some countries have withdrawn their participation in Osaka. The projected budget has nearly doubled, and netizens and opposition politicians are calling for a cancellation. A poll last month found more than two-thirds of those surveyed agreed that expo isn’t needed; in another, some 69% polled said they don’t want to attend the event.

You wonder why some even bother trying. Politicians rarely get rewarded for hosting successful events but are left holding the bag for those that go badly. Former Japanese premier Yoshihide Suga navigated the coronavirus pandemic to successfully stage the Tokyo Olympic Games in 2021, and despite vocal opposition beforehand, polls afterward found 70% agreed they had been worth holding. That didn’t help Mr. Suga’s own ratings, though, with the leader resigning shortly after.

Big events are hard to pull off. But that doesn’t mean organizers are wrong to try. Osaka might not get the 64 million visitors of 1970, but it’s still expected to get 28 million in 2025. As my colleague Matthew Brooker has noted over the 2012 London Olympics, while it might not have been the most efficient use of money, it was the only one that was available.

Skepticism over the World Expo in particular goes back to the very first event, in 1851, which Ultra-Tory politician Colonel Charles Sibthorp denounced as “one of the greatest humbugs, frauds and absurdities ever known.” It was a success nonetheless, with the Crystal Palace that hosted the “Great Exhibition” becoming an iconic London destination for decades. Many expo locations have similarly avoided passing into parody like the Sunsphere, from the Eiffel Tower to Seattle’s Space Needle. In Japan’s case, the grounds of the 2005 Nagoya Expo have recently been reborn as Ghibli Park, while Yumeshima, the artificial island set to host the Osaka event, will become the site of the country’s first casino.

Just as the 2010 Shanghai Expo helped showcase China to the outside world, 2025 similarly comes at a good moment for Osaka. A run-down city center has been transformed over the past decade, aided by tourist dollars. This will be capped next year when a former cargo yard near the city’s main station, a massive stretch of prime real estate that has lain shamefully dormant for three decades, will finally reopen as a park and multiuse development.

Busan, which also frequently lives in the shadow of the larger capital of Seoul, could do with the same boost — and should return for a 2035 bid, as officials are hinting. Indeed, Asian nations should grab these events when they’re available, because increasingly they’re going to freer-spending Middle Eastern countries instead.   

Following Qatar’s success in 2022, the 2034 World Cup is almost certain to head to Saudi Arabia in a controversially uncontested bid. The country will also host the FIFA Club World Cup this year and the finals of the revamped Asia Champions League for up to five years. While competing with the oil wealth of these rivals is impossible, there are also other failures that have nothing to do with spending: In the case of the Winter Olympics, while it’s not Middle Eastern countries that are taking over, bad press from bid-rigging during the Tokyo Games tanked Sapporo’s bids, with the Hokkaido city likely to lose out not just on the 2030 Winter Olympics, but also 2034.

Public wariness is understandable. But we’ve seen time and again how pre-event doom over major events fails to materialize — from the supposed “Olympic variant” of Covid-19 that would spread from the Tokyo Games, to the feared “beer shortage” during the 2019 Rugby World Cup. Neither happened. Osaka should celebrate its hosting — and despite the current skepticism, the public should back it. Busan, too, should regroup for a 2035 bid. Neither nation might have the chance again soon. — Bloomberg Opinion

Entertainment News (12/12/23)


Jerry Seinfeld in one-night show in Singapore

THE LEGENDARY comedian Jerry Seinfeld will be going to Singapore for a one-night only show at the Singapore Indoor Stadium on June 14, 2024. It is part of his Australian tour and will be his only stop in Asia. Interested parties can sign up for the TicketWorld waitlist by Dec. 13, 11:59 p.m. (SGT) to get priority access to purchase tickets. The pre-sale period runs from 11 a.m., Dec. 14 to 11 a.m., Dec. 15 (SGT). Jerry Seinfeld teamed up with fellow comedian Larry David to create what was to become the most successful comedy series in the history of television: Seinfeld. The show ran for nine seasons, winning numerous Emmy, Golden Globe and People’s Choice awards, and was named the greatest television show of all time in 2009 by TV Guide, and in 2012 was identified as the best sitcom ever in a 60 Minutes/Vanity Fair poll. His latest Emmy nominated Netflix projects include Jerry Before Seinfeld and 23 Hours to Kill along with the highly acclaimed web series, Comedians in Cars Getting Coffee. Mr. Seinfeld has also starred in, written, and produced movies (Comedian, Bee Movie), directed and produced a Broadway hit (Colin Quinn Long Story Short), and wrote three best-selling books and a children’s book. He will star in the upcoming comedy film, Unfrosted: The Pop-Tart Story, which he directed, co-wrote, and produced.


The Little Prince and more screen online

THIS HOLIDAY season, a collection of award-winning and critically acclaimed fantasy films will be screened online for free through the Museum of Contemporary Art and Design (MCAD) of the De La Salle-College of Saint Benilde, beginning Dec. 14. Curated by Iloilo Museum of Contemporary Art Museum Director Maricel Montero, the selection is a showcase of fanciful themes, from magic and supernatural occurrences, to mythology and folklore. The films are: Roald Dahl’s Matilda the Musical (2022), which follows the story of an extraordinary girl, neglected and mistreated by her parents and terrorized by the school headmistress, who decides to take a stand to change the trajectory of her own life (Dec. 14); the Chinese animated epic Big Fish and Begonia (Da yu hai tang), about a teenager who participates in a coming-of-age ritual that transforms her into a dolphin, and is then transported into the human world where she finds a connection with a mortal boy (Dec. 15); The Little Prince (Le Petit Prince), this adaptation tells the classic tale of loneliness, friendship, and loss through the wonders of stop motion, and Little Reader (Ang Munting Mambababasa), a short movie on a street kid who was taught how to read by his mother (both on Dec. 16). All the films will be streamed at noon. It is free and open to the public. It will be held online via Zoom. Interested participants may register through https://bit.ly/46OSfST.


Spencer streams on Lionsgate Play PH

STEP into the troubled world of Princess Diana with Pablo Larraín’s film Spencer, streaming on Lionsgate Play. Set over three days during the 1991 Christmas holidays at the Sandringham estate, Pablo Larraín’s Spencer gives the audience a glimpse into the tumultuous mind of Diana, Princess of Wales (played by Kristen Stewart). Her once beautiful marriage to Prince Charles is quickly deteriorating in the wake of his extramarital affair. As the pressure mounts and the rumors of infidelity and divorce take a toll on Diana’s already fragile mental health, she yearns for a life outside the confines of the British monarchy. Larraín’s film blends the truth with fiction to create a poignant retelling of Diana’s life. Spencer will stream exclusively on Lionsgate Play on PLDT Home starting Dec. 15.


Barbie streaming exclusively on HBO GO

Barbie is premiering online exclusively on HBO GO on Dec. 15. From Oscar-nominated writer and director Greta Gerwig (Little Women, Lady Bird), Barbie stars Oscar nominees Margot Robbie (I, Tonya) and Ryan Gosling (La La Land) as Barbie and Ken. It comes to HBO GO following its successful run in theaters earlier this year. The subscription service can be found on https://www.hbogoasia.ph/ or the mobile app via the App Store or Play Store for P1,190 on the 12-month plan.


Felip joins Aegis, Jose Mari Chan in holiday concert

P-POP SOLOIST Felip is joining AEGIS: The Christmas Bonus Concert, which will be held at The Theatre at Solaire in Parañaque on Dec. 20, 8 p.m. The newcomer, also known as Ken to SB19 fans all over the world, will be joining balladeer Jose Mari Chan and the Manila String Machine for the yearender event featuring pop-rock group Aegis, who will be hitting the concert stage with their career-spanning hits. Tickets to the concert are available at TicketWorld outlets nationwide and on their official website. SSVIP ticketholders are entitled for a Meet and Greet (M&G) session after the concert.


Prime Video reveals Drag Den with Manila Luzon cast

THE CAST of Drag Den with Manila Luzon Season Two: Retribution has been revealed. The new season of the hit Filipino reality drag competition on Prime Video marks the global streamer’s first local show renewal in Southeast Asia. The fresh batch of drag queens will showcase their talents over eight episodes, to be released exclusively on Prime Video starting Jan. 18, 2024, with a new episode every week. This season’s 10 new queens (up from Season One’s eight) are Deja, Margaux Rita, Elvira B, Feyvah Fatalé, Maria Lava, Mrs. Tan, Moi, Marlyn, Jean Vogue, and Russia Fox. Drag Den with Manila Luzon Season Two: Retribution is produced by CS Studios, series creator and directors Rod Singh, and Antoinette Jadaone of Project 8 Projects.


EXO’s Lay Zhang graces fan gathering in Manila

CHINESE star Lay Zhang (real name: Zhang Yixing) returned to the Philippines after 10 years to serenade fans and answer their questions at an exclusive Manila fan meeting and music listening party on Dec. 4. Produced by Warner Music Philippines, the event had around 200 Filipino fans, dubbed XBACKs and EXO-Ls, who clinched invites after signing up online. The rapper last visited the Philippines in 2013 as part of EXO-M, then Chinese subunit of the K-pop boy group EXO. Now a solo artist and chief executive officer of his own entertainment agency, he thanked his Filipino fans for their unwavering support.


K-drama Moving nominated at Critics Choice Awards

A KOREAN drama series on Disney+ was recently nominated for Best Foreign Language Series at the US’ 29th Annual Critics Choice Awards. Set across 20 episodes, Moving tells the story of a group of South Korean special agents working to protect their super-powered children from harm and exploitation at the hands of malicious government agencies. In October this year, it took home awards for visual effects, writing (Kangfull), lead actor (Ryu Seungryong), newcomer actor (Lee Jungha), and newcomer actress (Go Younjung) at the Busan International Film Festival’s Asia Content Awards & Global OTT Awards. All 20 subtitled episodes of Moving are available in the Philippines, exclusively on Disney+.


Edwin Hurry, Jr. remakes Christmas OPM classic

THE original Pilipino music (OPM) classic “Sana Ngayong Pasko” has been remade by Edwin Hurry, Jr., released under Universal Records. This Christmas-themed love song is a remake of the original Ariel Rivera hit. Known as a YouTube content creator, Mr. Hurry Jr. has attracted audiences with his unique musical stylings and engaging online presence, boasting of 1.32 million YouTube subscribers. A native of Caloocan City and a graduate from the Polytechnic University of the Philippines, his Harana Pranks series on Ome.TV, where he charms strangers with his serenade sessions, has gained millions of views. “Sana Ngayong Pasko” is now available on all major music platforms.

The war against reality: Learning from China’s disinformation campaign in the West Philippine Sea

PHILIPPINE STAR/VIDEO GRAB FROM NEWS 5

THE latest water cannon and ship ramming incidents against Philippine supply ships in Ayungin shoal by the Chinese Coast Guard (CCG) and its militia arm have become a major security concern for Manila and its allies. On the surface, it shows China’s aggressive enforcement of its fictitious 10-dash line through intimidation and reckless maritime practices. However, a closer look at these events reveals an insidious disinformation campaign aimed at propagating Beijing’s narrative in the West Philippine Sea.

For instance, so-called Filipino security analysts continue to voice pro-Beijing narratives, accusing the Philippine Coast Guard (PCG) of provoking the incident. Meanwhile, Chinese mainstream media have also accused the Philippines of violating its territorial rights and the PCG of unprofessional maneuvers at sea. This is combined with the deluge of troll postings, causing several Filipino officials to label these actors as traitors.

In general, this situation illustrates the extent and intent of the information operations against the Philippines. Thus, it is crucial for the country to be cognizant of Beijing’s playbook. Here are some of the key characteristics that will help us understand this strategy.

First, its philosophy is strategic. A 2018 Georgetown study referred to this as the “Three Warfares” framework. The concept defined non-kinetic operations (i.e., Malign influence, disinformation campaigns, etc.) as having three categories namely:

a.) Strategic Psychological Operations: This is composed of pre-conflict posturing using its military and paramilitary as well as other forms of national power to achieve its desired outcomes;

b.) Covert and Overt Media Operations: Dissemination of information through traditional media outlets, social media, and informal venues; and,

c.) Exploitation of National and International Legal Systems: This is where the PRC aims to leverage existing legal regimes, contest disadvantageous rulings, and constrain its adversary’s behavior.

Second, its actions speak louder than words. Beijing views the digital information space as a venue for strategic competition and has allotted the resources to dominate it. According to a 2021 study by the US-based RAND corporation, China spends $10 billion annually on information operations. In addition, the People’s Liberation Army (PLA) has transformed itself into an informatized force since the early 2000s. It believes that modern conflicts are waged in a networked (digitally interconnected) environment. It also views artificial intelligence as the preeminent tool that can dominate cyberspace and its information environment. To further ensure its efficacy, a united front approach is used for the purpose of shaping its narrative, influence public opinion, and support its disinformation campaigns.

For instance, it has an elaborate cyber-information warfare structure under its Strategic Support Force. It is allegedly organized to cover five theaters of operations with 12 bureaus, 14 offices, and numerous working groups. Several of these units are labeled as civilian organizations. Moreover, a 2017 estimate by the Foreign Policy places the size of China’s cyber army at around 50,000-100,000 personnel. In addition, the proliferation of troll farms and the use of social engineering techniques (i.e., Hacking the human, surveillance, etc.) are good examples of how Beijing is weaponizing the digital domain.

Lastly, learning from experiences is paramount. For instance, during Taiwan’s 2020 presidential elections, it was reported that the self-governed island experienced 20-40 million cyber-disinformation attacks per month. Similarly, during the visit of high-profile US officials in 2022, its government reported an astonishing 50 million attacks per day. Also, the 2019 Hong Kong protest showed this emphasis for disinformation, with government-linked posts portraying the pro-democracy demonstrators as members of ISIS and cockroaches. Another example is the DDoS attack against the messaging service Telegram, which was used extensively to organize the protest. Obviously, these attacks were intended to spread fear, panic, and confusion with the purpose of intimidating people and their governments. This unfortunate weaponization of cyberspace has become a hallmark for gray zone warfare not only in Taiwan and Hong Kong but in Southeast Asia as a whole.

LESSONS FOR THE PHILIPPINES AND OTHER COUNTRIES
A key takeaway from these events is China’s strong commitment to pursue its geopolitical goals in the Indo-Pacific region. For this purpose, malign influence, disinformation activities, and offensive cyber capabilities are crucial tools in its arsenal. Unfortunately, the Philippines finds itself on the frontlines due to its location in the first island chain and its renewed alliances with like-minded states.

Therefore, it is crucial to understand Beijing’s mindset and actions. Filipino officials and security planners must also avoid using their usual siloed and fragmented approach when dealing with such an elaborate campaign. Reactionary gestures and heightened emotions are understandable, but these tend to be short-lived and often become victims of short news cycles. Beijing’s vast war chest and refined doctrines can easily use a quid pro quo response to its advantage. Instead, knowing how malign influence and disinformation campaigns are developed, implemented, and reinforced can lead to innovative ways to mitigate their adverse impact. The experiences of Hong Kong and Taiwan can provide Filipino policy makers and security planners with valuable insights on how to counter and be more proactive in its approach against disinformation. This implies that a coordinated national and multi-stakeholder effort is more desirable. Transparency, effective communication, and sustainability are several factors that must be considered when mounting a strategic response.

The Philippines should not be alone in this fight. The country can leverage the commitment and collective expertise of its allies and partners. It will also benefit the Philippines if it continues to internationalize these incidents by putting a spotlight on the persistent bullying and reckless behavior of the CCG and its militia arm in the West Philippine Sea. In the end, the truth and the country’s adherence to a rules-based order will further strengthen its credibility.

Finally, we must all realize that disinformation campaigns are more than a nuisance or a source of annoyance. It is a deliberate effort that aims to weaken a country’s resolve, foment division, and sow information chaos. It is constantly evolving and tends to merge offensive cyber capabilities with the practices of malign influence operation into one cohesive strategy. It is for this reason that the Philippines should embark on a collective defense strategy that will develop the programs and techniques on how to counter these threats.

 

Sherwin E. Ona, PhD is an associate professor of the department of political science and development studies at De La Salle University, Philippines. He is a senior fellow of the Philippine Public Safety College and the Stratbase-Albert Del Rosario Institute. Dr. Ona is also a module director and lecturer on cyber defense policies at the National Defense College of the Philippines. He is an auxiliary officer of the Philippine Coast Guard with the rank of Commander.

Globe unit and AWS  plan cloud platform

GLOBE Telecom, Inc. said its unit had partnered with Amazon Web Services (AWS) to utilize its cloud platform for the company’s businesses, the listed telecommunications company said on Monday.

Globe, through its cloud company Cascadeo, and AWS are exploring how to leverage cloud technology for the operations of the former’s businesses.

“Our collaboration with AWS showcases our dedication to helping businesses evolve with cloud technology, making significant savings on cost without compromising on performance,” said Jared Reimer, chief technology officer and founder of Cascadeo, in a statement.

Globe said the parties’ joint study aims to provide an “economical, high-performance cloud infrastructure” for businesses.

The initiative, it said, is part of the company’s ambition to utilize artificial intelligence and cloud technology.

Separately, Globe said in a stock exchange disclosure that it had secured funds from a term loan facility of BDO Unibank, Inc. amounting to P20 billion that it will use to fund the company’s capital spending budget, debt refinancing, and general corporate requirements.

In total, the company said it had spent P54 billion as capital expenditure as of September this year for network expansion and enhancement.

Globe noted that the majority of its spending at 91% was set aside for the data requirements to ensure that customers will have uninterrupted connectivity and digital solutions access.

At the local bourse on Monday, shares in the company fell by P11 or 0.64% to end at P1,718 apiece. — Ashley Erika O. Jose

How minimum wages compared across regions in November

(After accounting for inflation)

In November, inflation-adjusted wages were 15.7% to 22.7% lower than the current daily minimum wages across the regions in the country. Meanwhile, in peso terms, real wages were lower by around P65.78 to P108.76 from the current daily minimum wages set by the Regional Tripartite Wages and Productivity Board.

 

How minimum wages compared across regions in November

How PSEi member stocks performed — December 11, 2023

Here’s a quick glance at how PSEi stocks fared on Monday, December 11, 2023.


Peso hits near one-month low amid easing bets of early Fed cut

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THE PESO slumped to a near one-month low against the dollar on Monday as strong US jobs data tempered expectations of an early rate cut by the US Federal Reserve.

The local unit closed at P55.65 per dollar on Monday, weakening by 35 centavos from P55.30 on Thursday, based on Bankers Association of the Philippines data.

This is the peso’s worst finish in almost a month or since it closed at P55.67 per dollar on Nov. 17.

The peso opened Monday’s session weaker at P55.57 against the dollar. Its intraday best was at P55.53, while its worst showing was at P55.665 versus the greenback.

Dollars exchanged fell to $888.88 million on Monday from $1.21 billion on Thursday.

The peso dropped on Monday as the dollar strengthened amid weakening bets of a rate cut by the US central bank in early 2024 following the release of latest nonfarm payrolls data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“As a result, some profit-taking was also seen in global financial markets, such as the upward correction in US Treasury yields, global crude oil prices, and a slight downward correction in the local stock markets to new one-week lows,” he added. 

“The peso depreciated significantly after the stronger-than-expected US employment report tempered views of an early Fed rate cut next year,” a trader likewise said in an e-mail.

US job growth accelerated in November while the unemployment rate fell to 3.7%, signs of underlying labor market strength that suggested financial market expectations of an interest rate cut early next year were probably premature, Reuters reported.

The Labor department’s closely watched employment report on Friday, however, did not change views that the Federal Reserve’s rate-hiking cycle was complete as annual wages rose moderately last month. Inflation has been cooling in recent months.

The drop in the jobless rate from a nearly two-year high of 3.9% in October alleviated fears that the economy was close to tipping into recession. The US central bank is expected to keep rates unchanged next Wednesday.

Nonfarm payrolls increased by 199,000 jobs last month after rising by an unrevised 150,000 in October, the Labor department’s Bureau of Labor Statistics said. Economists polled by Reuters had forecast 180,000 jobs created.

Financial markets lowered their bets of a rate cut in March. Traders saw higher odds of cut in May. Most economists continued to believe that the Fed would start easing monetary policy in the second half of 2024 as inflation subsides.

The Fed kept its target rate steady at the 5.25%-5.5% range for a second straight time during its Oct. 31-Nov. 1 meeting.

It has hiked rates by a cumulative 525 basis points since it began its tightening cycle in March 2022.

For Tuesday, the trader said the peso could recover against the dollar amid expectations of a good November US consumer price index report to be released later that day.

The trader sees the peso moving between P55.50 and P55.75 per dollar, while Mr. Ricafort expects it to range from P55.55 to P55.75. — AMCS with Reuters

PHL stocks drop as US jobs data fuel rate bets

REUTERS

STOCKS dropped further on Monday following strong US jobs data, which could support expectations that interest rates will remain steady in the world’s largest economy, a stance that could be mirrored by the Philippine central bank.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 6.48 points or 0.1% to end at 6,228.29 on Monday, while the broader all shares index declined by 1.93 points or 0.05% to finish at 3,327.65. 

“The market is down on strong US employment numbers, pointing to an extended Fed hawkish pause, reinforcing the Bangko Sentral ng Pilipinas’ (BSP) steady hold on the key rate and vigilant stance on the local currency,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

A US Labor department report showed nonfarm payrolls increased by 199,000 jobs in November, compared with an estimated increase of 180,000, Reuters reported.

The unemployment rate slipped to 3.7%, while average earnings edged up to 0.4% on a monthly basis, compared with forecasts of 0.3% growth.

Interest rate futures show traders widely expect the Federal Reserve to hold interest rates steady at its meeting on Dec. 12-13, according to the CME FedWatch tool.

“The local bourse dropped… as investors digested the statement of the BSP Governor Eli M. Remolona, Jr. that it is premature to discuss policy easing in 2024, prompting negative sentiment due to potential adverse impacts on the economy with prolonged elevated interest rates,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

Mr. Remolona last week said it is premature to discuss policy easing in 2024, with the Monetary Board still prepared to hike borrowing costs if needed to make sure inflation returns to the 2-4% target range.

The Monetary Board will hold its last policy meeting for this year on Thursday, a day after the Fed’s review.

A BusinessWorld poll last week showed 15 out of 17 analysts expect the Monetary Board to keep its target reverse repurchase rate steady this week, with the central bank remaining vigilant amid lingering upside risks to prices despite easing inflation recently.

Most sectoral indices declined on Monday. Financials went down by 33.26 points or 1.95% to 1,672.47; mining and oil dropped by 96.56 points or 1% to 9,543.94; industrials retreated by 24.21 points or 0.27% to 8,738.49; and services decreased by 3.66 points or 0.23% to 1,537.70. 

Meanwhile, holding firms rose by 44.57 points or 0.75% to 5,956.61 and property climbed by 18.06 points or 0.65% to 2,762.44.

Value turnover went up to P4.06 billion on Monday with 392.39 million issues changing hands from the P3.67 billion with 270.24 million issues traded on Thursday.

Decliners outnumbered advancers, 118 to 64, while 48 names ended unchanged. 

Net foreign selling dropped to P32.81 million on Monday from P410.52 million on Thursday.

The market was closed on Friday for a non-working holiday. — RMDO with Reuters

Philippines accuses China of ‘serious escalation’

PHILIPPINE STAR/VIDEO GRAB FROM NEWS 5

THE PHILIPPINES on Monday accused China of “serious escalation” after firing water cannons on Manila’s vessels on a resupply mission at Second Thomas Shoal in the South China Sea at the weekend.

Manila accused the Chinese coast guard and maritime militia of repeatedly firing water cannons at its resupply boats, causing serious engine damage to one and deliberately ramming another.

Philippine Chief of Staff of the Armed Forces Romeo Brawner, Jr. said he was aboard a vessel that was both sprayed with a water cannon and rammed.

“This is a serious escalation on the part of the agents of the People’s Republic of China,” National Security Council Assistant Director General Jonathan E. Malaya told a news briefing, where officials showed images and videos of the incident.

Mr. Brawner told DZBB radio he was unhurt and that he does not think China knew he was on board the boat.

The Philippines has filed diplomatic protests and has summoned China’s ambassador over its “aggressive” actions in the South China Sea, which a Foreign Ministry official said were a “threat to peace, good order and security.”

China’s Foreign Ministry said it had lodged solemn representations and a strong protest with the Philippine side over what it said was a collision on Sunday.

The Philippine vessels “ignored Chinese coast guard’s warnings and insisted on rushing into” waters near the Second Thomas Shoal, ministry spokesperson Mao Ning told a news briefing, adding that China’s operation was “professional, reasonable and legal.”

The Philippine ships were trying to deliver supplies to soldiers stationed on a warship that Manila deliberately grounded in 1999 to assert its sovereignty claim.

Ms. Mao said the responsibility for the “current repeated emergencies” at the disputed shoal lies with the Philippine side, which “refused to tow away the illegally beached warships and attempted to reinforce them to achieve permanent occupation.”

China urges the Philippines to stop its “maritime violations and provocations” and stop its “groundless attacks and smears” against China, she said.

Jay Batongbacal, a Manila-based expert on maritime law, said the latest incidents are “clearly another incremental escalation.”

“The use of water cannon this time is not mere dousing but had forceful impact, deliberately causing damage to vessels. And harassment of the civilian convoy is another step up in their threats,” he said.

‘DISSONANCE’
It was not the first time China used water cannons against Philippine vessels undertaking resupply missions for troops on features Manila occupies in the South China Sea. In August, the Philippines delayed a resupply mission by two weeks after its boats were sprayed.

The maritime confrontation between the Philippines and China at the weekend comes less than a month after leaders of both nations met on the sidelines of an economic summit in San Francisco to formulate ways forward in the South China Sea.

“There is a dissonance between what is being said and promised with what’s happening in the waters,” Philippine Foreign Affairs spokesperson Teresita Daza told the briefing.

Philippine President Ferdinand R. Marcos, Jr. has increasingly complained about China’s “aggressive” behavior, and he has sought closer ties with its treaty ally the United States.

China claims sovereignty over nearly the entire South China Sea, pointing to a line on its maps that cuts into the exclusive economic zones of Vietnam, the Philippines, Malaysia, Brunei and Indonesia. Taiwan, which China also claims as part of its territory, has said it does not accept Beijing’s maps.

The Permanent Court of Arbitration based in the Hague in 2016 said the line on China’s maps has no legal basis, a ruling the United States supports, but Beijing rejects.

The United States has called out China for interfering in the Philippines’ maritime operations and undermining regional stability and urged Beijing to stop “its dangerous and destabilizing conduct” in the strategic waters.

It reaffirmed its commitment to the Mutual Defense Treaty between the two countries, State Department spokesman Matthew Miller said in a statement on Dec. 10.

Asked about Washington’s comments, Ms. Mao said the maritime disputes between China and the Philippines was an issue between the two countries and that “no third party has the right to intervene.”

Mr. Malaya said China’s claims that the United States is fueling the Philippines’ audacity for provocation have no basis and reiterated that the US was not involved in resupply missions.

He said the Philippines is eyeing a new strategy in the South China Sea.

“We have to make some adjustments given the recent developments and we hope to be able to present this to the President very soon,” he said, adding that “there will be adjustments in our movements” especially since the President himself has expressed deep concern over the latest incidents.

Mr. Marcos on Sunday night said the actions of Chinese Coast Guard and maritime militia ships, which he described as aggressive and provocative, have only “further steeled” the government’s determination to defend the country’s sovereignty.

In a statement, the President reiterated that any foreign claim of sovereignty over Second Thomas Shoal, which falls within Manila’s exclusive economic zone (EEZ), is “baseless and absolutely contrary to international law.”

Scarborough Shoal is “sovereign Philippine territory and an integral part of our archipelago,” Mr. Marcos added. “No one but the Philippines has a legitimate right or legal basis to operate anywhere in the West Philippine Sea,” he added, referring to areas of the South China Sea with the country’s EEZ.

Ms. Daza said 14 countries have expressed support for the position, including the US, which on Monday accused China of using acoustic devices that incapacitated Filipino crew members.

“Obstructing supply lines to this longstanding outpost and interfering with lawful Philippine maritime operations undermines regional stability,” the US State Department said in a statement.

Australia, Canada, Denmark, the European Union, Finland, France, Germany, Ireland, Japan, South Korea, the Netherlands, New Zealand and the United Kingdom have also joined the chorus of concern over China’s actions, Ms. Daza added.

The water cannon incidents on Sunday prompted a civilian convoy that was set to pass near Second Thomas Shoal to change course.

The coalition said the wooden boat MV Chowee, one of the Christmas convoy boats, had managed to reach Lawak Island at 5 a.m. to deliver supplies after taking a different route from the MV Kapitan Felix, which was carrying more than 50 volunteers and dozens of journalists.

The coalition announced on Sunday night that it had agreed to return to El Nido, Palawan after the constant shadowing of four Chinese vessels, two of which were Chinese Navy ships. — Kyle Aristophere T. Atienza with Reuters