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Centrist Nicusor Dan wins Romanian presidency

Romanian and European Union flags flutter, with a rainbow in the background, outside the Parliament in Bucharest, Romania, May 18, 2025. — REUTERS

BUCHAREST — Romania’s centrist Bucharest mayor, Nicusor Dan, won the country’s presidential election on Sunday in a shock upset over a hard-right, nationalist rival who had pledged to put Romania on a path inspired by US President Donald J. Trump’s politics.

Official results from nearly all voting stations showed Mr. Dan garnering about 54% of ballots cast by voters in the European Union (EU) and North Atlantic Treaty Organization (NATO) member country of about 19 million people, while Trump supporter George Simion was at 46%.

Mr. Dan, 55, a soft-spoken mathematician, made a last-minute dash to the top in recent days after weeks of trailing Mr. Simion, a eurosceptic wanting to end military aid for Ukraine in its war with Russia. The election drew the highest percentage of voter turnout in a Romanian election in 25 years.

Mr. Simion, who was the top vote-getter in the first round of the election two weeks ago with 41% of ballots cast, conceded after earlier saying he won the election.

Mr. Dan had campaigned on a pledge to fight rampant corruption, to maintain support for Ukraine — where Romania has played an important logistic role — and to keep the country firmly within the European mainstream.

On Sunday evening in the capital Bucharest, Mr. Dan supporters chanted “Russia, don’t forget, Romania isn’t yours.” Staunchly pro-EU and NATO, Mr. Dan said in the run-up to the election that Romania’s support for Ukraine was crucial for its own security against a growing Russian threat.

Ukraine’s President Volodymyr Zelensky congratulated Mr. Dan on his “historic victory,” writing on social media: “For Ukraine — as a neighbor and friend — it is important to have Romania as a reliable partner.”

The voting in Romania took place on the same day as the first round of a Polish election in which a liberal frontrunner, Rafal Trzaskowski edged ahead of Karol Nawrocki, the candidate backed by the opposition nationalist Law and Justice (PiS) party.

Both elections are being closely watched across Europe amid concern that popular anger with mainstream elites over migration and cost of living pressures could bolster support for Mr. Trump and erode unity on the continent over how to deal with Russia.

In Romania, however, the election showed backlash against politicians taking inspiration from right-wing populist Trump’s Make American Great Again (MAGA) movement, according to Mujtaba Rahman, managing director for Europe at consultancy Eurasia Group.

“This is a really strong result for the pro-European candidate,” Mr. Rahman said.

“It’s another example of the positive Trump effect on European election cycles where concerns about the political and policy direction moving in a MAGA-like way have mobilized voters.”

‘A DIFFICULT PERIOD AHEAD’
Mr. Dan acknowledged that he faces a tough challenge in finding a prime minister to negotiate a majority in parliament to reduce Romania’s budget deficit — the largest in the EU — as well as to reassure investors and try to avoid a credit rating downgrade.

“There will be a difficult period ahead, necessary for economic rebalancing to lay the foundations of a healthy society. Please have hope and patience,” Mr. Dan told supporters after exit polls were published showing him ahead.

Mr. Dan later said talks could take a few weeks.

The election took place nearly six months after the initial ballot was cancelled because of alleged Russian interference — denied by Moscow — in favor of far-right frontrunner Calin Georgescu, who was banned from standing again.

Romania looked poised to swing towards Russia had Mr. Georgescu won, and Mr. Simion built a campaign to benefit from his support, signalling he would nominate him as prime minister if he emerged victorious.

Speaking shortly after voting ended, Mr. Simion said his election was “clear.”

“I won!!! I am the new President of Romania and I am giving back the power to the Romanians!” Mr. Simion said on Facebook. But Simion conceded the election later in the evening.

A crowd of Mr. Dan’s supporters celebrated his victory outside his campaign headquarters in downtown Bucharest.

“These elections are really important for the European future,” said Ilinca Sipoteanu, 19. “This is very good for democracy and for the younger generations… and also for our parents and grandparents that fought the system in 1989.”

Romania’s communist dictator Nicolae Ceausescu was overthrown in 1989.

The president of Romania has considerable powers, including being in charge of the defense council that decides on military aid. The president will also have oversight of foreign policy, with the power to veto EU votes that require unanimity.

Political analysts had said victory for Mr. Simion would have risked isolating Romania abroad, eroding private investment and destabilizing NATO’s eastern flank.

It also would have meant that Hungary’s fiercely anti-immigrant leader Viktor Orban, a long-time Mr. Trump ally, and Slovakia’s Robert Fico — who both oppose military aid for Ukraine — would gain a new ally in the European Council in decisions on aid for Ukraine, energy, sanctions against Russia or the EU’s budget.

In the first round of Poland’s presidential election, admirers of Mr. Trump’s politics won about 45% of votes cast, according to exit polls, including Mr. Nawrocki’s result combined with that of far-right candidate Slawomir Mentzen. — Reuters

Taiwan is not ruling out ‘political warfare’ by China, coast guard says

TAIWAN President-elect Lai Ching-te, of Democratic Progressive Party (DPP), holds a press conference, following his victory in the presidential elections, in Taipei, Taiwan, Jan. 13, 2023. — REUTERS

TAIPEI — Taiwan’s coast guard said on Monday China could try to disrupt public morale on the island ahead of President Lai Ching-te’s one-year anniversary this week, after images surfaced on social media of a person planting a Chinese flag on a Taiwan beach.

China calls Lai, who completes a year in office on Tuesday, a “separatist,” and has rebuffed his offers for talks.

Mr. Lai rejects China’s sovereignty claims over the democratic and entirely separately governed island, saying only Taiwan’s people can decide their future.

Last week, Taiwan’s China-policy making Mainland Affairs Council said Beijing could hold more military drills to “stir up trouble” around the anniversary.

On Sunday, images posted on Chinese social media showed a man who claimed to have sailed across the Taiwan Strait on a small boat landing on a remote beach and planting a Chinese flag, before returning to China. The video was later deleted.

On Friday, Taiwan’s coast guard said it had arrested two Chinese nationals after they sailed into Taiwan illegally on a rubber boat and landed on a beach on the island’s northwest coast.

Asked about the two incidents, Hsieh Ching-chin, deputy head of Taiwan’s coast guard, said China has been taking the opportunity for a while now to carry out drills and use other pressure tactics.

“It cannot be ruled out that on the anniversary of President Lai’s inauguration, the Chinese communists will again use similar tactics and videos to engage in political warfare to disrupt the morale of our people,” he told reporters.

Mr. Hsieh said the video of the flag planting was indeed taken on the beach in Taiwan’s Taoyuan, but whether by someone who crossed over from China, or was helped by someone in Taiwan to film it, was still being investigated.

China’s Taiwan Affairs Office did not immediately respond to a request for comment. — Reuters

JPMorgan upgrades emerging market equities as Sino-US trade war eases

US and Chinese flags are seen in this illustration. — REUTERS

J.P.Morgan upgraded its rating on emerging market equities to “overweight” from “neutral” on Monday, citing easing US-China trade tensions and a softer dollar.

Last week, the US and China agreed to a 90-day tariff reduction, with the US cutting duties on Chinese goods to 30% from 145% and China lowering tariffs on US imports to 10% from 125%, fuelling hopes of easing global trade tensions.

“De-escalation on US-China trade front reduces one significant headwind for EM equities,” JPM analysts said in a note, adding that the stocks would be further helped by a weakening of the greenback in the second half of this year.

J.P.Morgan remains positive on India, Brazil, the Philippines, Chile, the UAE, Greece, and Poland within emerging markets, and sees a promising opportunity in China, particularly in technology stocks.

“While this is unlikely to be the end of trade noise, we think that the worst of it is likely behind us,” the Wall-Street brokerage added.

The MSCI emerging markets stock index is up 9% so far this year, as confidence in U.S. assets, including the safe-haven dollar, has weakened amid concerns over President Donald Trump’s erratic and aggressive policies.

The dollar index is down 7.5% so far this year.

EM equities have lagged developed markets by a cumulative 40% since 2021, according to the brokerage.

Stock valuations now look attractive as they trade at 12.4 times its 12-month forward earnings compared to developed markets’ 19.1, JPM said. — Reuters

From curative to preventative: reshaping healthcare in Southeast Asia

“A shift from curative care to preventative care can help create a more sustainable, accessible, and resilient healthcare system in the ASEAN region, according to Chris Humphrey, executive director of the EU-ASEAN Business Council.

This shift involves self-care, which includes health literacy so people understand what their body tells them, early diagnosis, which includes regular checkups, and life course immunizations, which includes influenza shots for adults. EU-ASEAN members like Siemens Healthineers and Roche, Mr. Humphrey added, promote such programs.

Promoting education on diet and exercise, along with encouraging private health insurance, can contribute to sustainable healthcare financing. This, in turn, can help achieve universal health coverage, Mr. Humphrey also said.

“If we can make sure we have a healthier, fitter ASEAN, that’s good for our members,” he told BusinessWorld. “It’s good for the governments of the region. It helps drive more economic growth and development. It means we can look after the citizens of the region much better.”

Interview by Patricia Mirasol
Video editing by Jayson Mariñas

In Indonesia, fears grow that dark past may be rewritten with government’s new history books

STOCK PHOTO | Image by jorono from Pixabay

 – The Indonesian government’s plan to release new history books has sparked concerns that some of the country’s darkest chapters could be recast to show President Prabowo Subianto and late authoritarian ruler Mr. Suharto in a favorable light.

The 10-volume series would have an Indonesia-centric narrative and aims “to reinvent the Indonesian identity,” Culture Minister Fadli Zon told Reuters in an interview.

Several historians said the commissioning of the books presents an opportunity for historical revisionism at a time when Indonesia’s younger generations – largely responsible for Mr. Prabowo’s resounding election victory last year – have little or no memory of Mr. Suharto’s 1966-1998 New Order era.

Mr. Prabowo openly praises Mr. Suharto, who was once his father-in-law, and is increasingly turning to the military to carry out his government’s vision.

Mr. Prabowo has also been accused of rights abuses while in the military, including involvement in the kidnapping of student activists during riots in 1998 – allegations he has repeatedly denied and which Mr. Fadli said had been debunked.

Asvi Warman Adam, a leading historian who used to work at the National Research and Innovation Agency, said he was calling on academics to lobby lawmakers to scrutinize what he said would be “propaganda”.

“I suspect there is an intention to legitimise the ruling regime … such as by excluding gross human rights violations in 1998 linked to Prabowo,” he said, adding that he expected the government would soon confer the posthumous title of “National Hero” on Suharto.

Asked about concerns by some analysts and historians that the books could be used as propaganda, be politicized and omit human rights abuses that have been linked to Mr. Prabowo and Mr. Suharto, Mr. Fadli said: “History will be written correctly”.

The president’s office did not immediately respond to a request for comment on the new books. Mr. Prabowo has previously said that former activists were his supporters.

Mr. Fadli, who has authored a book that defended Mr. Prabowo‘s actions as a special forces commander during Suharto’s 32-year rule, added that neither he nor Prabowo would be involved in the editorial process.

The books, which Mr. Fadli said were commissioned last year, will chronicle the history of humankind in Indonesia from homo erectus to Dutch colonization to Prabowo’s election. They will be authored and edited by about 100 historians and Mr. Fadli says he wants them ready by August 17, Indonesia’s Independence Day.

 

MASS KILLINGS IN FOCUS

Made Supriatma, a visiting fellow at the ISEAS-Yusof Ishak Institute in Singapore, said he believes the government will use the same playbook as Suharto, who released a six-volume book series in 1975 titled “The National History of Indonesia” that he said glorified the military and was fraught with inaccuracies.

“Prabowo’s history within this republic is not good, to be frank … Do they dare to write that?” said Made.

Jajat Burhanuddin, a historian involved in the project, said so far there has been no state intervention. The 1998 kidnappings and torture of student activists would be included, he said, although he declined to say whether Mr. Prabowo would be mentioned in those accounts.

Another key focus for historians will be how the books portray the mass killings of communists and sympathizers in 1965 and 1966, led by military and Islamic leaders. Some historians estimate more than half a million people were killed.

No investigation has been conducted into the killings, which were in response to the murder of generals by the communist party in an abortive coup.

Mr. Suharto rose to power in the aftermath and remained president until 1998, when he stepped down during a popular uprising and economic crisis after allegations of corruption and nepotism.

The 1965 events continue to be debated in Indonesia. Mr. Fadli said the new books would not take a deeper look into the massacres.

Mr. Fadli, who was among the student activists who demonstrated against Suharto, now speaks highly of the former ruler, highlighting economic achievements in his early presidency, including slashing poverty and tackling inflation.

“My opinion has always been for a long time that Suharto should be considered a national hero,” he said. – Reuters

Microsoft wants AI ‘agents’ to work together and remember things

REUTERS

 – Microsoft envisions a future where any company’s artificial intelligence agents can work together with agents from other firms and have better memories of their interactions, its chief technologist said on Sunday ahead of the company’s annual software developer conference.

Microsoft is holding its Build conference in Seattle on May 19, where analysts expect the company to unveil its latest tools for developers building AI systems.

Speaking at Microsoft’s headquarters in Redmond, Washington, ahead of the conference, Chief Technology Officer Kevin Scott told reporters and analysts the company is focused on helping spur the adoption of standards across the technology industry that will let agents from different makers collaborate. Agents are AI systems that can accomplish specific tasks, such as fixing a software bug, on their own.

Mr. Scott said that Microsoft is backing a technology called Model Context Protocol (MCP), an open-source protocol introduced by Google-backed Anthropic. Scott said MCP has the potential to create an “agentic web” similar to the way hypertext protocols that helped spread the internet in the 1990s.

“It means that your imagination gets to drive what the agentic web becomes, not just a handful of companies that happen to see some of these problems first,” Scott said.

Scott also said that Microsoft is trying to help AI agents have better memories of things that users have asked them to do, noting that, so far, “most of what we’re building feels very transactional.”

But making an AI agent’s memory better costs a lot of money because it requires more computing power. Microsoft is focusing on a new approach called structured retrieval augmentation, where an agent extracts short bits of each turn in a conversation with a user, creating a roadmap to what was discussed.

“This is a core part of how you train a biological brain – you don’t brute force everything in your head every time you need to solve a particular problem,” Mr. Scott said. – Reuters

Former US President Biden diagnosed with ‘aggressive’ prostate cancer

US PRESIDENT JOSEPH R. BIDEN — WHITEHOUSE.GOV

Former U.S. President Joe Biden has been diagnosed with an “aggressive form” of prostate cancer that has spread to his bones, his office said in a statement on Sunday.

Mr. Biden, 82, was diagnosed on Friday after experiencing urinary symptoms, and he and his family are reviewing treatment options with doctors, according to the statement.

“While this represents a more aggressive form of the disease, the cancer appears to be hormone-sensitive which allows for effective management,” his office said.

Cancers that have spread, or metastasized, are considered Stage 4, the most advanced. Most prostate cancers are detected at an earlier stage.

According to the Centers for Disease Control and Prevention, of the 236,659 cases of prostate cancer diagnosed in 2021, 70% were diagnosed before the cancer had spread beyond the prostate. About 8% of new prostate cancer diagnoses that year involved advanced-stage disease.

Mr. Biden’s physical health and mental acuity drew scrutiny during his 2021-2025 presidency. He abruptly ended his bid for reelection last July, weeks after a halting performance during a debate against Republican Donald Trump prompted panic among his fellow Democrats.

President Trump, who has repeatedly berated Mr. Biden since taking office in January, expressed sympathy on Sunday for Biden and his wife, Jill, in a post on his social media platform Truth Social.

“Melania and I are saddened to hear about Joe Biden’s recent medical diagnosis,” he wrote, referring to first lady Melania Trump. “We extend our warmest and best wishes to Jill and the family, and we wish Joe a fast and successful recovery.”

Mr. Biden’s office said the cancer scored a nine out of 10 on the Gleason score grading system, which is used to help determine the aggressiveness of prostate cancer.

Dr. Herbert Lepor, an urologist at NYU Langone, said a score of nine is “very high risk,” but added that many men can live “five to 10 years and beyond” even with metastatic prostate cancer.

“Over the last decade, there have been many advances in the treatment of advanced prostate cancer,” he said.

Dr. Chris George, the medical director of the cancer program for the Northwestern Health Network, said prostate cancer is no longer curable once it spreads to the bones but that there are treatments that can control it.

 

BIDEN, TRUMP OLDEST TO WIN PRESIDENCY

Mr. Biden was the oldest person to win the U.S. presidency at the time of his election in 2020. Mr. Trump, 78, broke that record when he defeated Vice President Kamala Harris last year.

Some prominent Democrats have recently acknowledged that it was an error to advance Biden as the 2024 nominee, given widespread concerns among voters about his age. Long before the debate last summer, Reuters/Ipsos polls showed a majority of Americans, including most Democrats, believed Biden was too old to serve a second term.

“It was a mistake for Democrats to not listen to the voters earlier,” Democratic U.S. Senator Chris Murphy told NBC News’ “Meet the Press” on Sunday morning, before Biden’s diagnosis was announced.

Mr. Biden has kept a low profile since leaving office, making only a handful of public appearances, including an April speech in which he defended the Social Security Administration against Trump’s planned cuts.

He has also defended his legacy in interviews and rejected reporting in two new books that he suffered from cognitive decline during his last year in office.

“They are wrong,” he said earlier this month on ABC’s “The View,” referring to the books’ authors.

Mr. Biden’s diagnosis triggered an outpouring of supportive statements on Sunday from Democrats and Republicans alike.

“Joe is a fighter — and I know he will face this challenge with the same strength, resilience and optimism that have always defined his life and leadership,” Harris said in a statement.

Mr. Biden lost a son, Beau Biden, in 2015 due to brain cancer.

In 2022, Mr. Biden revived an Obama-era program known as Cancer Moonshot, seeking to reduce the death rate from cancer by at least 50% over the next 25 years. – Reuters

Israel says it will let food into Gaza after announcing new ground assault

JOHANNES SCHENK-UNSPLASH

 – Israel will ease its blockade and let limited amounts of food into Gaza, Prime Minister Benjamin Netanyahu’s office said on Sunday, after the military announced it had begun “extensive ground operations” in the northern and southern parts of the enclave.

Facing mounting pressure over an aid blockade it imposed in March and the risk of famine, Israel has stepped up its campaign in Gaza, where Palestinian health officials said hundreds have been killed in attacks in the past week, including 130 overnight.

“At the recommendation of the IDF (Israel Defense Forces), and out of the operational need to enable the expansion of intense fighting to defeat Hamas, Israel will allow a basic amount of food for the population to ensure that a hunger crisis does not develop in the Gaza Strip,” Netanyahu’s office said.

Eri Kaneko, a spokesperson for U.N. aid chief Tom Fletcher confirmed the agency had been approached by Israeli authorities to “resume limited aid delivery,” adding that discussions are ongoing about the logistics “given the conditions on the ground.”

Israel made its announcement after sources on both sides said there had been no progress in a new round of indirect talks between Israel and the Palestinian militant group Hamas in Qatar.

Netanyahu said the talks included discussions on a truce and hostage deal as well as a proposal to end the war in return for the exile of Hamas militants and the demilitarization of the enclave – terms Hamas has previously rejected.

The Israeli military suggested in a later statement that it could still scale down operations to help reach a deal in Doha. Military chief Eyal Zamir told troops in Gaza that the army would provide the country’s leaders with the flexibility they need to reach a hostage deal, according to the statement.

Israel’s military said it had conducted a preliminary wave of strikes on more than 670 Hamas targets in Gaza over the past week to support “Gideon’s Chariots”, its new ground operation aimed at achieving “operational control” in parts of the enclave. It said it killed dozens of Hamas fighters.

Gaza’s Health Ministry said in the week to Sunday alone, at least 464 Palestinians were killed.

“Complete families were wiped off the civil registration record by (overnight) Israeli bombardment,” Khalil Al-Deqran, Gaza health ministry spokesperson, told Reuters by phone.

The Israeli campaign has devastated Gaza, pushing nearly all of its two million residents from their homes and killing more than 53,000 people, many of them civilians, according to Gaza health authorities.

Israel has blocked the entry of medical, food and fuel supplies into Gaza since the start of March to try to pressure Hamas into freeing its hostages and has approved plans that could involve seizing the entire Gaza Strip and controlling aid.

International experts have warned of looming famine.

 

QATAR TALKS

Asked about the Qatar talks, a Hamas official told Reuters: “Israel’s position remains unchanged, they want to release the prisoners (hostages) without a commitment to end the war.”

Hamas was still proposing to release all of its Israeli hostages in return for an end to the war, the pull-out of Israeli troops, an end to a blockade on aid for Gaza, and the release of Palestinian prisoners, the Hamas official said.

A senior Israeli official said there had been no progress in the talks so far.

Israel’s declared goal in Gaza is the elimination of the military and governmental capabilities of Hamas, which attacked Israeli communities on October 7, 2023, killing about 1,200 people, mostly civilians, and seizing 251 hostages.

In Israel, Einav Zangauker, mother of hostage Matan Zangauker, said Netanyahu was refusing to end the war in exchange for the hostages for political reasons.

“The Israeli government still insists on only partial deals. They are deliberately tormenting us. Bring our children back already! All 58 of them,” Zangauker said in a social media post.

 

TENTS ABLAZE

One of Israel’s overnight strikes hit a tent encampment housing displaced families in Khan Younis in southern Gaza, killing women and children, wounding dozens and setting tents ablaze, medics said.

Later on Sunday, Gaza’s health ministry said the Indonesian Hospital, one of the largest partially functioning medical facilities in northern Gaza, had ceased work because of Israeli fire.

Israel’s military said its troops were targeting “terrorist infrastructure sites” in northern Gaza, including in the area adjacent to the Indonesian hospital.

Hamas neither confirmed nor denied reports on Sunday in Arab and Israeli media that its leader, Mohammed Sinwar, was killed in last week’s airstrikes on a tunnel below another hospital further south in Gaza.

Gaza’s healthcare system is barely operational and the blockade on aid has compounded its difficulties. Israel blames Hamas for stealing aid, which Hamas denies.

“Hospitals are overwhelmed with a growing number of casualties, many are children,” said Al-Deqran, the health ministry spokesperson.

The Palestinian Civil Emergency Service said 75% of its ambulances could not run because of fuel shortages. It warned that within 72 hours, all vehicles may stop. – Reuters

Britain poised to reset trade and defense ties with EU

STOCK PHOTO | Image by Pierre Blaché from Pixabay

 – Britain is poised to agree the most significant reset of ties with the European Union since Brexit on Monday, seeking closer collaboration on trade and defense to help grow the economy and boost security on the continent.

Prime Minister Keir Starmer, who backed remaining in the EU, has made a bet that securing tangible benefits for Britons will outweigh any talk of “Brexit betrayal” from critics like Reform UK leader Nigel Farage when he agrees closer EU alignment at a summit in London.

Mr. Starmer will argue that the world has changed since Britain left the bloc in 2020, and at the heart of the new reset will be a defense and security pact that could pave the way for British defense companies to take part in a 150 billion euros ($167 billion) program to rearm Europe.

The reset follows U.S. President Donald Trump’s upending of the post-war global order and Russia’s full-scale invasion of Ukraine, which have forced governments around the world to rethink ties on trade, defense and security.

Britain struck a full trade deal with India earlier this month and secured some tariff relief from the United States. The EU has also accelerated efforts to forge trade deals with the likes of India and deepen partnerships with countries including Canada, Australia, Japan and Singapore.

Negotiations between the two sides continued into Sunday evening, before European Commission President Ursula von der Leyen and European Council President Antonio Costa were due in London on Monday morning. One EU diplomat cautioned that “nothing is agreed until everything is agreed”.

From the issues up for discussion, Britain is hoping to drastically reduce the border checks and paperwork slowing down UK and EU food and agricultural exports, while access to faster e-gates for UK travelers at EU airports would be hugely popular.

In return, Britain is expected to agree to a limited youth mobility scheme and could participate in the Erasmus+ student exchange program. France also wants a long-term deal on fishing rights, one of the most emotive issues during Brexit.

 

LIMITED ROOM FOR MANEUVER

Britain’s vote to leave the EU in a historic referendum in 2016 revealed a country that was badly divided over everything from migration and sovereignty of power to culture and trade.

It helped trigger one of the most tumultuous periods in British political history, with five prime ministers holding office before Mr. Starmer arrived last July, and poisoned relations with Brussels.

Polls show a majority of Britons now regret the vote although they do not want to rejoin. Farage, who campaigned for Brexit for decades, leads opinion polls in Britain, giving Mr. Starmer limited room for maneuver.

But the prime minister and French President Emmanuel Macron have struck up a solid relationship over their support for Ukraine, and Mr. Starmer was not tainted with the Brexit rows that went before, helping to improve sentiment.

 

‘BREAK THE TABOO’

The economic benefit will be limited by Mr. Starmer’s promise to not rejoin the EU’s single market or customs union, but he has instead sought to negotiate better market access in some areas – a difficult task when the EU opposes so-called “cherry picking” of EU benefits without the obligations of membership.

Removing red tape on food trade will require Britain to accept EU oversight on standards, but Mr. Starmer is likely to argue that it is worth it to help lower the cost of food, and grow the sluggish economy.

Agreeing a longer-term fishing rights deal will also be opposed by Farage, while the opposition Conservative Party labelled Monday’s event as the “surrender summit”.

One trade expert who has advised politicians in both London and Brussels said the government needed to “break the taboo” on accepting EU rules, and doing so to help farmers and small businesses was smart.

Trade experts also said Britain benefited from the greater focus on defense, making the deal look more reciprocal, and said improved ties made sense in a more volatile world.

When “trade disruption is so visible and considerable” anything that reduced trade friction with a country’s biggest trading partner made sense, said Allie Renison, a former UK government trade official at consultancy SEC Newgate. – Reuters

FDA approves Novavax COVID vaccine with new conditions

The U.S. Food and Drug Administration approved Novavax’s COVID-19 vaccine, but limited its use to older adults and people over the age of 12 with conditions that put them at risk due to the illness.

The vaccine’s prospects were thrown into doubt after the FDA missed its April 1 target to approve the shot, which is a more traditional protein-based vaccine unlike its messenger RNA-based rivals. U.S. Health and Human Services Secretary Robert F. Kennedy Jr., a long-time vaccine skeptic, also raised concerns about the efficacy of the shot in a CBS interview.

Novavax Chief Corporate Affairs and Advocacy Officer Silvia Taylor said in an interview that the company had been notified of its approval late on Friday night after substantial back-and-forth with regulators.

She said the company was not concerned about the limited approval, because the population was in line with those who generally seek out the shots.

“I think there’s a growing consensus that you don’t need a universal recommendation anymore, and the U.S. is an outlier in terms of having that,” Ms. Taylor said.

She noted that the outside expert panel that advises the CDC on vaccines has discussed tightening the recommended population of who should receive annual shots.

“It’s just presaging where this is probably going from a policy standpoint,” Ms. Taylor said.

The company, along with competitors Moderna and Pfizer, will also need to file for an additional approval if it needs to change the strain of the virus its vaccine targets for the upcoming COVID-19 immunization season.

That change will be discussed at a meeting of FDA vaccine advisers later this week.

The approval restricts the use of the vaccine, sold under the brand name Nuvaxovid, to individuals aged 65 and older, and those between 12 and 64 who have at least one underlying condition that increases their risk of developing severe illness from COVID.

According to the U.S. Centers for Disease Control and Prevention, a wide list of conditions constitutes an additional risk, ranging from various illnesses, such as diabetes and heart disease, to behaviors like physical inactivity and substance abuse.

Novavax CEO John Jacobs said in a statement that the approval was a “significant milestone” that solidifies a path for people to access the vaccine. The company missed out on the pandemic vaccine windfall due to manufacturing issues and regulatory hurdles.

Former FDA Chief Scientist Jesse Goodman said the agency appears to have overstepped by limiting its approval for Novavax, depriving some people of an opportunity to make a choice about what vaccine they wish to receive.

“The FDA approval process is intended to assess safety and efficacy, and allow access to approved vaccines. It is not the place to make policy recommendations for how to use approved vaccines,” Mr. Goodman said. – Reuters

PSE hikes capital-raising goal to P170B

REUTERS

By Revin Mikhael D. Ochave, Reporter

THE Philippine Stock Exchange, Inc. (PSE) is increasing its capital-raising target this year to P170 billion from P120 billion and from P82.4 billion in actual capital raised last year, amid an easing trade war between the world’s two biggest economies that had fed fears of a global recession.

The new goal is based on capital-raising activities that have been applied for and does not yet take into account GCash’s planned initial public offering (IPO), PSE President and Chief Executive Officer Ramon S. Monzon told a virtual news briefing last week.

“We expect this year to be a very high capital-raising year, a very successful year for PSE,” he added.

Mr. Monzon said capital raised at the PSE had reached P42.42 billion as of May 14.

Some of the big IPOs expected include those from west zone water concessionaire Maynilad Water Services, Inc. and mobile wallet operator GCash.

“I’m really looking at IPOs, follow-on offerings, stock rights offerings and private placements because after all, the exchange is the platform where companies are supposed to raise capital,” the PSE chief said.

Mr. Monzon hinted that GCash might end up proceeding with its IPO later this year but said it had not yet applied.

“GCash has been talking to us,” he said. “While there has been no formal application yet, I know they are preparing to do an IPO later this year.”

“As to the actual timing, we don’t know when it will be. There are some issues that they are trying to resolve, mainly the valuation and determining what size of IPO they should have that can be absorbed by the market,” he added.

Globe Telecom, Inc., which has a 36% stake in Globe Fintech Innovations, Inc. (Mynt), which owns GCash operator G-Xchange, Inc., last month said its IPO for the e-wallet would proceed, but the timing remained uncertain due to market volatility caused by US tariffs.

The US and China last week announced a 90-day pause on most of their recent tariffs on each other, fueling hopes of a cooldown in their trade war.

The combined US duties on Chinese imports will be cut to 30% from 145%, while China’s levies on US imports will fall to 10% from 125%.

But some analysts have noted that tariffs remain far higher than before Mr. Trump regained office, suggesting that prices of many consumer goods — from cars and food to clothing — would still go up.

Maynilad is targeting a July 17 listing for its P45.8-billion IPO, based on its latest prospectus dated May 14. It is required to offer at least 30% of its outstanding capital stock to the public by January 2027 under its legislative franchise.

Jarrod Leighton M. Tin, an equity research analyst at DragonFi Securities, Inc., thinks the PSE’s capital-raising target this year is attainable.

“It is achievable since Maynilad is required by law to list on the PSE,” he said in a Viber message. “The stock right offerings and follow-on offerings should be straightforward.”

“Now is a better time to conduct IPOs since the US markets have bottomed out with the de-escalation of the trade war,” he added.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., also cited better stock market conditions locally and in the US.

“It follows that more fund-raising is possible locally, as companies that will sell shares will be able to sell at a higher price and maximize the proceeds that they would be able to raise,” he said in a Viber message.

PDS INTEREST
Meanwhile, Mr. Monzon said the PSE is seeking to increase its stake in the Philippine Dealing System Holdings Corp. (PDS) to as much as 97% as the market operator awaits developments on three government banks that are selling their interest.

“We’re talking to three government institutions that still own shares in PDS,” he said, referring to Development Bank of the Philippines with 3%, Land Bank of the Philippines with more than 2.5% and Philippine Deposit Insurance Corp. with less than 1%.

“It’s taking a long time for us to acquire this because being government banks, they’re subject to certain rules before they can dispose of their investments,” the PSE chief said. “Right now, they’re trying to get an exemption to go into another public bidding before they can sell to PSE.”

Last week, the PSE increased its beneficial ownership stake in PDS to 91.6% after it closed accession deals for the 17,500 PDS shares held by two members of the Bankers Association of the Philippines (BAP) equivalent to a 0.28% stake.

The PDS operates the Philippine Dealing and Exchange Corp. (PDEx), Philippine Depository and Trust Corp. and Philippine Securities Settlement Corp.

After the market operator’s acquisition of PDS, Mr. Monzon said the PSE had agreed to sell part of its ownership in bond trading platform PDEx to BAP.

“After some serious negotiations, we finally reached an agreement that PSE would be willing to sell part of the PDEx ownership to BAP, but PSE would remain in control at 51%,” he said.

“It’s the banks that do a lot of the trading and generate the revenues for PDEx,” he pointed out. “You want to have them as a partner, not as an adversary.”

“Being the primary stakeholders of the fixed-income market, I think they would be very helpful in coming up with new products that they could trade and offer to their clients,” he added.

In December, the PSE reached a P2.32-billion deal to acquire a 61.92% stake in PDS. The deal involved the acquisition of 3.87 million shares at P600 each.

On Friday, the bellwether PSE index shed 0.02% or 1.33 points to 6,465.53, while the broader all-share index added 0.02% or 0.93 point to 3,769.37.

Election-tied spending may shield growth from tariffs

PHILIPPINE STAR/MIGUEL DE GUZMAN

HOUSEHOLD CONSUMPTION during the election period and state expenditures once the ban on spending on certain infrastructure projects is lifted are expected to cushion the effects of higher US tariffs on Philippine economic growth.

“We project that the impact of US tariffs can be offset by election spending activities and lifting of the ban on certain public works after the elections,” Budget Secretary Amenah F. Pangandaman told BusinessWorld in a Viber Message last week.

Ms. Pangandaman, who heads the Development Budget Coordination Committee (DBCC), said government capital spending is likely to accelerate in the coming quarters.

The Commission on Elections’ 45-day ban on public works spending started on March 28 and ended with the May 12 elections.

The Philippine economy grew slower than expected in the first quarter at 5.4% from 5.9% a year earlier. It was below the government’s 6-8% target for the year.

The slowdown was partly attributed to heightened uncertainty from US President Donald J. Trump’s reciprocal tariffs announced in April. The higher duties, including a 17% tariff on Philippine exports, were suspended for 90 days pending negotiations.

Ms. Pangandaman expects election-related spending to lift economic growth after the 18.7% increase in state expenditures as agencies front-loaded ahead of the election ban.

Department of Economy, Planning, and Development Undersecretary Rosemarie G. Edillon said state spending could moderate in the second quarter since it was covered by the ban in April and parts of May.

Ms. Pangandaman said disbursements are expected to pick up toward the latter part of May to June after the election ban is lifted.

However, analysts warned the boost could be short-lived.

Election-related spending could only provide a “short-term” boost, said John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies.

“This may partially offset the drag from external headwinds like the US tariffs, especially if government agencies frontload infrastructure projects and political campaigns sustain high levels of economic activity,” he said in a Viber Message on Sunday.

He said the momentum from election spending might not be enough to sustain growth beyond the second quarter if export-facing sectors suffer losses or investment slows.

The benefits are “transitory,” while higher tariffs could have longer-term structural effects such as reduced export competitiveness, supply-chain shifts and investor uncertainty, he added.

Philippine export growth slowed to 6.2% in the last quarter from 8.1% a year earlier as companies remained cautious about trade.

Reinielle Matt M. Erece, an economist at Oikonomia Research and Advisory, Inc., said relying on government spending to drive growth is unsustainable and could exhaust the state budget and trigger more borrowings. 

He urged the government to pursue trade deals and improve the investment climate instead.

Trade Secretary Maria Cristina A. Roque, Special Assistant to the President for Investment and Economic Affairs Frederick D. Go and Philippine Ambassador to the US Jose Manuel D. Romualdez met with US Trade Representative (USTR) Jamieson Greer in Washington on May 2 to discuss tariffs.

Ms. Roque earlier said the meeting “went very well,” adding that they expect more meetings.

Ms. Pangandaman said they would continue to monitor agencies’ budget use rates, while catch-up plans for delayed programs would be prioritized post-election. — Aubrey Rose A. Inosante