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North Korea media urges stronger nuclear force after US missile test

MICHA BRANDLI-UNSPLASH

SEOUL – North Korea will increase its military deterrent to ensure its security against a US nuclear arsenal aimed at it, its state media reported on Friday, as it criticized the United States for a recent intercontinental ballistic missile (ICBM) test.

The US Air Force launched a nuclear-capable Minuteman III missile from a base in California on Wednesday but the missile was blown up after an anomaly was detected. The test was attended by South Korean defense officials in their first such visit since 2016.

A North Korean military commentator said despite the failure of the test, the presence of South Korean “puppet military gangsters” showed that US nuclear weapons were targeted at North Korea.

“The DPRK will as ever continue its military action to bolster up the deterrence and ensure the strategic security in the Korean peninsula and the region,” the unidentified commentator said in a report carried by the KCNA state news agency, referring to the country by the initials of its official name, the Democratic People’s Republic of Korea.

The commentary also criticized the US and South Korea for various recent military steps including the deployment of US nuclear strategic bombers to South Korea.

“The nuclear threat by the US and its vassal forces to the DPRK nears a new red line,” the North Korean commentator said, calling for the strengthening of “self-defensive nuclear armed forces”.

South Korea’s Unification Ministry, which handles inter-Korean affairs, said the commentary raised the question of whether North Korea was preparing to justify another military “provocation”.

“It is clear that the current heightened tensions on the Korean peninsula resulted from North Korea’s futile nuclear development and reckless military provocations,” deputy ministry spokesperson Kim In-ae told a briefing.

South Korea held a joint exercise with the US and Japan near the Korean peninsula last month, involving a US B-52 strategic bomber as well as fighter jets of the three nations.

The US and South Korea also held air exercises involving 130 warplanes from both countries to simulate 24-hour wartime operations last month.

South Korea and the United States say their exercises are aimed at maintaining combat readiness to respond to North Korea.

North Korea denounces the exercises as preparations by the United States and its South Korean ally to invade it. – Reuters

 

Ex-crypto mogul Sam Bankman-Fried convicted of multi-billion dollar FTX fraud

SAM BANKMAN-Fried, the founder of bankrupt cryptocurrency exchange FTX, arrives at a courthouse in New York, U.S., Aug. 11, 2023. — REUTERS/EDUARDO MUNOZ

NEW YORK – FTX founder Sam Bankman-Fried was found guilty on Thursday of stealing from customers of his now-bankrupt cryptocurrency exchange in one of the biggest financial frauds on record, a verdict that cemented the 31-year-old former billionaire’s fall from grace.

A 12-member jury in Manhattan federal court convicted Mr. Bankman-Fried on all seven counts he faced after a monthlong trial in which prosecutors made the case that he looted $8 billion from the exchange’s users out of sheer greed.

The verdict came just shy of one year after FTX filed for bankruptcy in a swift corporate meltdown that shocked financial markets and erased his estimated $26 billion personal fortune.

The jury reached the verdict after just over four hours of deliberations. Mr. Bankman-Fried, who had pleaded not guilty to two counts of fraud and five counts of conspiracy, stood facing the jury with his hands clasped in front of him as the verdict was read.

The conviction was a victory for the US Justice Department and Damian Williams, the top federal prosecutor in Manhattan, who made rooting out corruption in financial markets one of his top priorities.

“The crypto industry might be new, the players like Sam Bankman-Fried may be new, but this kind of fraud is as old as time and we have no patience for it,” Mr. Williams told reporters outside the courthouse.

Once the darling of the crypto world, Bankman-Fried – who was known for his mop of unkempt curly hair and for wearing shorts and T-shirts rather than business attire – joins the likes of admitted Ponzi schemer Bernie Madoff and “Wolf of Wall Street” fraudster Jordan Belfort as notable people convicted of major US financial crimes.

US District Judge Lewis Kaplan set Bankman-Fried’s sentencing for March 28, 2024. The Massachusetts Institute of Technology graduate could face decades in prison.

His defense lawyer Mark Cohen said in a statement that he was “disappointed” but respected the jury’s decision.

“Mr. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him,” he said.

After Kaplan left the courtroom, Mr. Cohen put his arm around Mr. Bankman-Fried as they spoke at the defense table.

As Mr. Bankman-Fried was led away by members of the US Marshals service, he turned around and nodded at his parents, the Stanford Law School professors Joseph Bankman and Barbara Fried, who were seated in the courtroom audience’s front row. Ms. Fried looked toward him and crossed her arm across her chest.

Mr. Bankman-Fried is set to go on trial next March on a second set of charges brought by prosecutors earlier this year, including for alleged foreign bribery and bank fraud conspiracies.

 

BANKMAN-FRIED TESTIFIED IN OWN DEFENSE

Mr. Bankman-Fried’s was the first of several blockbuster cases Mr. Williams brought against former high-flying cryptocurrency executives to go to trial. Several crypto companies went bankrupt last year after the prices of bitcoin and other digital assets collapsed following a years-long boom.

Prosecutors argued during the trial that Mr. Bankman-Fried siphoned money from FTX to his crypto-focused hedge fund, Alameda Research, despite proclaiming on social media and in television advertisements that the exchange prioritized the safety of customer funds.

Alameda used the money to pay its lenders and to make loans to Mr. Bankman-Fried and other executives – who in turn made speculative venture investments and donated upwards of $100 million to US political campaigns in a bid to promote cryptocurrency legislation the defendant viewed as favorable to his business, according to prosecutors.

Mr. Bankman-Fried took the calculated risk of testifying in his own defense over three days near the close of trial after three former members of his inner circle testified against him. He faced aggressive cross-examination by the prosecution, often avoiding direct answers to the most probing questions.

He testified that while he made mistakes running FTX, such as not formulating a risk-management team, he did not steal customer funds. He said he thought Alameda’s borrowing from FTX was allowed and did not realize how large its debts had grown until shortly before both companies collapsed.

“We thought that we might be able to build the best product on the market,” Mr. Bankman-Fried testified. “It turned out basically the opposite of that.”

 

‘HE THOUGHT THE RULES DID NOT APPLY’

Prosecutors had a different view.

“He didn’t bargain for his three loyal deputies taking that stand and telling you the truth: that he was the one with the plan, the motive and the greed to raid FTX customer deposits – billions and billions of dollars – to give himself money, power, influence. He thought the rules did not apply to him. He thought that he could get away with it,” prosecutor Danielle Sassoon told the jury on Thursday.

The jury heard 15 days of testimony. Former Alameda CEO Caroline Ellison and former FTX executives Gary Wang and Nishad Singh, testifying for the prosecution after entering guilty pleas, said he directed them to commit crimes, including helping Alameda loot FTX and lying to lenders and investors about the companies’ finances.

The defense argued the three, who have not yet been sentenced, falsely implicated Bankman-Fried in a bid to win leniency at sentencing. Prosecutors may ask Kaplan to take their cooperation into account in deciding their punishment.

Mr. Bankman-Fried has been jailed since August after Kaplan revoked his bail, having concluded he likely tampered with witnesses. – Reuters

Marcos hands over agri secretary post to fishing magnate

Presidential Communications Office

By Kyle Aristophere T. Atienza, Reporter

President Ferdinand R. Marcos, Jr. has resigned from his additional role as Agriculture secretary and named a fishing tycoon to take over during a time of high food prices.

In a press conference on Friday, Mr. Marcos announced the appointment of Francisco Tiu Laurel, Jr., president of Frabelle Fishing Corp., as the new secretary of the Department of Agriculture, with the responsibility to “gain control” of the prices of agricultural goods.

Mr. Laurel, 56, will also prioritize efforts to make the agriculture sector resilient in the face of climate change and rise of animal diseases such as swine and avian flues, the President said.

He will work on government efforts to reduce production costs and modernize the agriculture sector, Mr. Marcos added.

He said the new Agriculture leadership will study the agricultural practices of the Philippines’ neighbors such as Thailand, Indonesia, and Vietnam.

In 1985, Mr. Laurel, at the age of 28, took on the role of president at Frabelle Fishing Corp., a company established in 1966 that was then a modest-sized trawling enterprise.

VARIOUS ROLES

Mr. Laurel also has important roles in several companies. He is the president of Frabelle Shipyard Corp., chairman of Westpac Meat Processing Corp., director of Frabelle Properties Corp., president of Markham Resources Corp., and both chairman and president of Diamond Export Corp.

At the same time, he is the president of Bacoor Seafront Corp. and chairman of the Bukidnon Hydro Energy Corp.

Mr. Laurel, a member of Mr. Marcos’ Private Sector Advisory Council, currently chairs the World Tuna Purse Seine Organization.

Some stakeholders in the agriculture industry have welcomed the new appointment but warned of the big challenges facing the sector.

Jayson H. Cainglet, executive director of SINAG, urged Mr. Laurel to prioritize local producers over foreign players.

“Importation [should only be the] last resort and not the principal policy,” he said in a statement, asking the new agriculture leadership to “reject, much more to support, all proposals to reduce tariffs on all agricultural commodities.”

“Qualifications or merits are not guarantees of good performance,” he said. “Our judgment will rest on his performance as DA secretary.”

Fisherfolk group Pamalakaya said Mr. Laurel should also prioritize reforms for the fisheries sector, which it said needs to be strengthened in the face of rising imports.

“The fishers are giving a standing order to the new DA Secretary to strengthen local food production by renouncing liberalization policies of importation of agricultural and fisheries products,” it said, noting that it has monitored more than 200, 000 metric tons of various pelagic fishes imported from other countries like China and Taiwan from from 2018 to 2022.

“This is an insult not only to us being an archipelagic country but also to millions of Filipinos involved in the fishing sector.”

The DA Secretary should know that opening floodgates for imported fishery products poses drastic impacts on the livelihood of local fisherfolk. Cheap and inferior quality imported fish causes further price drop of local fishery products. For instance,

Every time the Philippine government allows the importation of tens of thousands of metric tons of round scad (galunggong), the farm-gate value of the fish product drops to as low as P50 from P70-P80 per kilogram, posing “drastic threats” to the livelihood of Filipino fishermen.

“Cheap and inferior quality imported fish causes further price drop of local fishery products.”

The group also urged the new leadership to ensure that Filipino fisherfolk are able to fully utilize the country’s marine and aquatic resources within its territorial and traditional fishing grounds.

Mr. Laurel should also prohibit “all forms of conversion and reclamation of coastal communities and fishing grounds that cause displacement of fisherfolk and irreversible destruction of marine and aquatic resources.”

The Meat Importers and Traders Association said Mr. Laurel brings with him a wealth of “experience and understanding covering the livestock and fisheries sectors,” as it looks forward to working with the new secretary.

Geny F. Lapina, a professor at the University of the Philippines Los Baños’ Department of Agricultural and Applied Economics, noted that the President was clear from the start about his intention to eventually appoint a secretary for the DA.

“I think it would have been unsustainable for him to continue holding that position. Therefore, it is good he is finally letting someone else take over,” he said in an email.

Mr. Lapina said that while many sectors, especially those in the private sector,  are expected to throw their support behind the new Agriculture leadership with the expectation that Mr. Laurel might have a better grasp of how to modernize the local agriculture sector and enable it to compete better in the global market, “others would be concerned with conflicts of interest since he may have difficulty balancing the private interests of his company with those of the public interest.”

“His company might have an advantage on policies that might be pursued,” he said. “Regardless, the new DA Secretary will be expected to pursue policies that help bring down the prices of food.”

‘TOUGH ASSIGNMENT’

He said the appointment will be a tough assignment given the local and global challenges hounding the agriculture and food sector.

“Let us see if this will mean a more liberalized policy that makes use of trade to help boost the overall food supply or a more protectionist stance that favors local production but not necessarily lower prices of food,” he said.

Citing Mr. Laurel’s strong industry experience, agriculture expert Roy S. Kempis said one could surmise that he possesses a set of behaviors “toward more production, productivity, and profitability in an industry ecosystem that demands logistics efficiency and effectivity — knowing that fish is highly perishable.”

“We know that the fishing industry, while important to our food needs, has not received the attention of the degree similar to crops like rice, livestock like pork, poultry like chicken and eggs,” he said in a Viber message. “And yet fish in the countryside serves as an affordable source of protein especially along and nearby coastal areas.”

Mr. Marcos took charge of the Agriculture department in July last year, promising to boost the country’s food security amid rising prices spurred by Russia’s invasion of Ukraine.

Over a year has passed, and the country is still facing increasing prices, with rice inflation hitting a 14-year high last month.

Mr. Marcos enforced a rice price ceiling on Sept. 5, limiting the commodity’s price to P41 a kilo for regular milled rice and P45 for well-milled rice.

The ceiling was lifted on Oct. 4, and critics have said it did not help bring down prices.

Philippine inflation rose to 6.1% in September from 5.3% in August amid a double-digit increase in rice prices.

Soaring commodity prices have weakened public support for the administration, with Mr. Marcos facing a double-digit decline in his approval and trust ratings in a recent Pulse Asia Research, Inc. survey, according to experts.

The President’s trust rating fell by three points to 73% in the third quarter from a quarter earlier, the Octa Research Group said on Monday. His approval rating also declined by 6 points to 65%.

Weak yen forces Japan to shrink historic military spending plan

REUTERS

TOKYO – A collapse in the yen is forcing Japan to scale back a historic five-year, 43.5-trillion-yen defense build-up aimed at helping to deter a Chinese invasion of Taiwan, according to eight people familiar with the matter.

Since the plan was unveiled in December, the yen has lost 10% of its value against the dollar, forcing Tokyo to reduce its ambitious defense procurement plan, which was then-calculated to cost $320 billion, the sources said.

Reuters interviewed three government officials with direct knowledge of defense procurement and five industry sources, who said Japan will begin cutting back on aircraft purchases in 2024, the second year of the build-up, due to the weak yen.

Details of how Japan is paring back military procurement due to currency fluctuations have not been previously reported. The eight people, who attended numerous meetings on the purchases, spoke on condition of anonymity because they were not authorized to talk to media.

Tokyo assumed an exchange rate of 108 yen to the dollar – a rate last traded at in summer 2021 – when it began formulating purchase plans in December, the eight people said. By early November, the currency dipped to 151 to the dollar. The Bank of Japan on Tuesday took a small step toward ending the decade-long monetary stimulus, which has driven yen depreciation, by tweaking bond yield controls.

Unlike large companies that do business overseas, Japan’s defense ministry does not hedge against currency rate fluctuations, one of the government officials said, meaning it has few means to mitigate the rising cost in yen of Tomahawk cruise missiles and F-35 stealth fighters.

Any sign that Prime Minister Fumio Kishida will get less bang than anticipated from his military spending binge could stir unease in Washington about its key ally’s ability to help contain Beijing, said Christopher Johnstone, Japan chair at the Center for Strategic and International Studies think tank.

“For now, the impact is modest. But there is no question that a long-term depreciation of the yen would sap the impact of Japan’s build-up, and force cuts and delays to key acquisitions,” said Johnstone, a former National Security Council director for East Asia in the Biden administration.

Japan’s Ministry of Defense said it does not discuss details of procurement planning when contacted for comment.

The US Embassy in Tokyo said it was unable to comment. The Pentagon did not immediately return a request for comment.

 

BUILD-UP

Mr. Kishida described Japan’s biggest defense build-up since World War Two as a “turning point in history.” The spending is meant gird the nation for possible conflict around its far-flung islands stretching along the edge of the East China Sea toward Taiwan, according to defense white papers. Tokyo also shares responsibility for protecting US bases on its soil that Washington could use to launch counter strikes against Chinese forces attacking the self-governing democratic island.

In December, Mr. Kishida pledged to double annual defense outlays to 2% of gross domestic product. A move to transform the war-renouncing nation into potentially the world’s third-biggest military spender was seen by analysts and lawmakers as improbable until two years ago.

That changed when Russian forces rolled into Ukraine in February 2022, in an invasion that Tokyo worries will embolden Beijing to strike Taiwan.

China stoked Japanese fears again that August by firing missiles into waters close to its territory in response to then-US house speaker Nancy Pelosi’s visit to Taiwan. That came after months of intensifying Chinese activity in East Asia, including joint sorties with Russian forces.

China, which has not ruled out using military force to bring Taiwan under its control, has expressed concern about Japan’s military spending plans, accusing it of displaying a “Cold War mentality.”

 

CHINOOKS AND SEAPLANES

With the cuts in its spending power, Japan decided to prioritize spending on advanced US-made frontline weapons such as missiles that could halt advancing Chinese forces, the eight people said. That means less money on support aircraft and other secondary kit, much of it made by Japanese companies, they said.

In December, defense ministry officials discussed an order for 34 twin-rotor Chinook transport helicopters at roughly 15 billion yen per aircraft, two of the sources said.

In the defense budget request for the year starting April 2024, which was published in August, that order was halved to 17 because the cost of the aircraft had jumped by around 5 billion yen each since December. About half that increase was due to the weak yen, said one of the government sources, who was directly involved in those discussions.

The aircraft are assembled by Kawasaki Heavy Industries 7012.T under license from Boeing. A Kawasaki spokesperson confirmed that the unit cost increase had resulted in a reduction in the Chinook order.

Japan also scrapped a plan to buy two ShinMaywa Industries 7224.T US-2 seaplanes used for search and rescue missions after the price per aircraft almost doubled to 30 billion yen compared with three years ago, said two other people familiar with the spending plans.

“The price has risen considerably, and that is because the weaker yen and inflation have significantly pushed up costs,” a company spokesperson said. She declined to comment on whether the defense ministry had dropped an order for the seaplane.

 

INDUSTRY BACKLASH

For Mr. Kishida, who must grapple with rival ruling-party factions that are sparring over whether to borrow money or hike taxes to pay for his defense build-up, pruning equipment purchases may be politically less fraught than asking lawmakers for top-ups, analysts said.

“Whether Kishida decides to increase the budget or do nothing will depend on his support rate in Japan,” said Yoji Koda, a retired Maritime Self Defense Force admiral, who commanded the Japanese fleet. He expects the Japanese leader to opt for procurement cuts or delays because it’s easier than convincing taxpayers to fork out more money.

But, by sidestepping that challenge, Mr. Kishida is also inviting a backlash from Japanese companies that worry they will bear the brunt of cuts to ensure Tokyo can afford Raytheon Tomahawks and the F-35 jets it has ordered from Lockheed Martin.

In a sign of growing discontent, the Japan Business Federation, the country’s most influential corporate lobby, joined several defense industry associations in October to press the defense ministry for extra military procurement funds in a supplementary budget now before parliament, one of the sources said.

A ministry spokesperson confirmed the companies delivered a letter on Oct 25 to Defense Minister Minoru Kihara urging the government to proceed with the defense procurement as planned.

The business lobby declined to comment.

Defense firms will struggle to get more money because the government will want to hold off on adding to the 43 trillion-yen plan to see if the currency situation changes, said Kevin Maher at NMV Consulting in Washington, who headed the U.S. State Department’s Office of Japan Affairs.

“If they think it will impact capabilities then it is possible, but I think at the earliest that would be in the next to last year of the five-year plan,” he said. – Reuters

UN experts say ceasefire needed as Palestinians at ‘grave risk of genocide’

PEOPLE react as Palestinians search for casualties at the site of an Israeli strike on a residential building in Gaza City, Oct. 25, 2023. — REUTERS

GENEVA – A group of independent United Nations experts called on Thursday for a humanitarian ceasefire in Gaza, saying time was running out for Palestinians there who are at “grave risk of genocide”.

Nearly four weeks of Israeli bombardment on the Gaza Strip in retaliation for deadly attacks by Hamas gunmen in southern Israel on Oct. 7 have killed more than 9,000 people, most of them women and children, health authorities in the Hamas-run enclave say.

Israel says it is targeting Hamas, not civilians, and accuses the Iran-backed militant group of using residents as human shields.

“We remain convinced that the Palestinian people are at grave risk of genocide,” the group of experts, made up of seven U.N. special rapporteurs, said in a statement.

“We demand a humanitarian ceasefire to ensure that aid reaches those who need it the most.”

The Israeli mission to the U.N. in Geneva called the comments “deplorable and deeply concerning” and blamed Hamas for civilian deaths.

“The current war was brought upon Israel by Hamas terrorists who committed a massacre on October 7, butchering 1,400 people and kidnapping 243 children, men and women,” the mission said, referring to the attacks which were the deadliest in Israel’s 75-year-history.

The International Criminal Court defines the crime of genocide as the specific intent to destroy in whole, or in part, a national, ethnic, racial or religious group by killing its members or by other means, including imposing measures intended to prevent births or forcibly transferring children from one group to another.

Asked about the independent experts’ statement at a press briefing, Stéphane Dujarric, spokesperson for U.N. Secretary-General Antonio Guterres, said a determination of genocide could only be made by a relevant U.N. judicial body.

On Oct. 28, departing senior U.N. human rights official Craig Mokhiber wrote to the High Commissioner for Human Rights Volker Turk, saying: “we are seeing a genocide unfolding before our eyes, and the Organization that we serve appears powerless to stop it.”

The U.N. rights office said that Mokhiber’s planned retirement took effect this week and that his views were “personal” and did not reflect those of the office.

Speaking to Reuters after the experts’ statement was issued, one of its signatories said the people of Gaza had been deprived of the “the most basic elements for living”.

“We are using the term risk of genocide because the process that is (underway) is absolutely indiscriminate, affecting, in this case, more than 2 million people,” said Pedro Arrojo Agudo, Special Rapporteur on the human rights to safe drinking water and sanitation.

“And in this sense, I think we are facing a risk of genocide, effectively.”

Aid supplies to Gaza have been choked since Israel began bombarding the densely populated enclave, with aid organisations saying it is nowhere near matching the needs of its residents.

“The situation in Gaza has reached a catastrophic tipping point,” the U.N. experts said, adding that Gazans had been left with scarce water, medicine, fuel and essential supplies while facing health hazards.

The experts also pointed to Israel allies, which they said “bear responsibility and must act now to prevent its disastrous course of action”.

“We call on Israel and its allies to agree to an immediate ceasefire,” the U.N. experts said. “We are running out of time.” – Reuters

 

Elon Musk asks court to reject SEC’s bid to make him testify in Twitter probe

TWITTER.COM/ELONMUSK

NEW YORK – Elon Musk asked a federal judge on Thursday not to force him to testify in the US Securities and Exchange Commission’s probe into his $44 billion takeover of social media site Twitter.

Mr. Musk filed the objections in San Francisco federal court, where the SEC sued him on Oct. 5 to make him testify for the probe, which it launched in April 2022. The SEC’s subpoena exceeds the agency’s investigative authority, is overly burdensome and seeks “irrelevant evidence”, Mr. Musk’s lawyers said in the filing.

The SEC has said it was investigating Mr. Musk’s 2022 purchases of Twitter stock and his statements and SEC filings relating to Twitter — which Musk subsequently renamed X — and that Musk had refused to attend a September interview for the probe.

Alex Spiro, an attorney for Mr. Musk, has called the investigation “misguided.”

On Thursday, Mr. Spiro and Mr. Musk’s other lawyers said in the filing: “The SEC’s pursuit of Mr. Musk has crossed the line into harassment”.

The SEC did not respond immediately to requests for comment. The agency has previously said it is well within its authority to seek additional testimony from Mr. Musk and that it has received new documents in the investigation since last interviewing him.

On April 4, 2022, Musk disclosed he had acquired a 9.2% stake in Twitter. It was 11 days after the SEC’s deadline for such disclosures. Musk initially said he planned to be a passive stakeholder, meaning he did not plan to take over the company.

Later that month, he announced plans to buy Twitter for $44 billion. He subsequently tried to get out of the deal, alleging Twitter was not disclosing the full extent of bot activity on its platform.

After being sued to complete the deal, Mr. Musk closed his acquisition of Twitter in late October 2022.

Mr. Musk has given the SEC documents relating to the probe and provided testimony in July last year via video conference, the SEC said in a court filing. But SEC attorneys said they have more questions for Mr. Musk after seeing the documents.

The SEC has issued 32 subpoenas in the investigation and has taken testimony from Mr. Musk and at least three other individuals seven times, Mr. Spiro said in a second filing. Mr. Musk alone has received five subpoenas for documents and another three for testimony, he said.

The SEC has spent 18 months “devoting its formidable resources to investigating Mr. Musk over an allegedly untimely filing,” the court filings said. “This is just the latest chapter in a more-than-five-year saga of agency harassment against Mr. Musk and related entities.”

The court battle is the latest flare up in the acrimonious relationship between the US market regulator and Musk, the world’s wealthiest person.

The SEC sued Mr. Musk in 2018 over his posts on social media saying he had “funding secured” to take electric vehicle maker Tesla Inc. private. Mr. Musk settled, but the regulator sued him again in 2019 alleging he had violated the terms of the agreement.

Mr. Musk has meanwhile accused the agency of mounting “endless” investigations into him and Tesla.

He said he will ask the US Supreme Court to review the legality of his SEC settlement, which requires him to vet some of his social media posts with a Tesla lawyer. – Reuters

Charting the future of holistic work environments

Unwind at SM Offices’ rejuvenation spaces such as its sky gardens.

In the landscape of modern office spaces, there’s a transformative shift underway. The modern workforce, defined by their hunger for knowledge and driven by unbridled ambition, seeks more than just four walls and a Wi-Fi connection. They yearn for environments that stimulate growth, foster collaboration, and prioritize holistic well-being.

At the forefront of this transformation is SM Offices, the commercial property development and management arm of the renowned SM Prime Holdings, Inc. (SM Prime). Rather than just reacting to the change, SM Offices is a catalyst that recalibrates the very ethos of workplace experiences to resonate with today’s fast-paced and demanding world.

SM Offices sets itself apart with its visionary approach. Deep within the designs they have brought to life, which are renowned for their perfect blend of sustainability, disaster resilience, and strategic urban placements, is a holistic philosophy that aims at crafting nurturing environments that truly echo the aspirations and requirements of contemporary professionals.

At the Mall of Asia Complex, E-com tenants will find everything within arm’s reach.

Recognizing the paradigm shift in workforce’s expectations, SM Offices has interwoven the principles of employee well-being, satisfaction, and deep engagement into the core fabric of their developmental approach. It continuously prioritizes tenant-partners and employees by adhering to their needs after carefully listening and engaging with them.

As SM Prime’s Commercial Properties Group Vice-President Alexis Ortiga shared, SM Offices has begun providing employee-centric services that address various needs, such as ESG-sensitive office solutions, green outdoor spaces, sports facilities that promote health and well-being, and retail conveniences that make the transition from home to work seamless and fun.

SM Offices’ holistic philosophy is very much evident as well in their initiatives. For instance, in collaboration with the Philippine Mental Health Association, they recently held a wellness activity for their tenants in celebration of World Mental Health Day, wherein participants from various companies kicked into high gear in a cardio-boxing session, enjoying the backdrop of a Manila Bay sunset.

The recent SM Offices’ “Spooktacular Halloween @ E-com” event brought together E-com tenants and their kids to create new cherished SM Offices Community memories.

SM Offices also held a gala event in celebration of the Halloween festivities. Beyond mere entertainment, this initiative has been designed to be a cultural get-together. Packed with puppet acts, magic shows, and a variety of games, it aims to transform routine office activities into cherished experiences that foster community bonding.

SM Offices tenant-partner employees kick things into high gear with fitness activities.

Even so, the vision of SM Offices extends well beyond these festivities as it keeps to heart its thrust for a well-balanced lifestyle. In line with living healthy and active routines,  OneE-com Center boasts of basketball, badminton, and volleyball courts at the top floor, which are bookable online and readily available for the enjoyment of E-com tenants and employees in the Mall of Asia Complex.

SM Offices also begins to schedule eclectic night gigs at the illustrious Prism Plazas, blending harmonious music with an array of gourmet culinary delights, and “destress hours,” offering tranquil pockets of relaxation and rejuvenation amidst the demanding rigors of work.

“Our collaborations extend to other SM Prime affiliates, curating a unique suite of benefits designed to augment the workplace experience,” Mr. Ortiga added. “From exclusive privileges to tenant-partner appreciation events, our intent is unequivocal — to nurture a profound sense of community and mutual growth.”

Overlooking the Ortigas CBD skyline is the S-shaped Mega Tower architectural landmark.

In terms of expansion, SM Offices’ portfolio of properties continues to sprout in the metro. The recently-launched LEED Gold certified Mega Tower, an elegant S-shaped 50-storey skyscraper in the Ortigas Central Business District, stands as SM Offices’ tallest skyscraper to date.

Another structure launched a few months ago is the FourE-com Center’s South Tower in the MOA Complex. Pre-LEED Gold certified FourE-com Center, with its three 15-storey towers, spans an estimated 100,000 square meters of leasable area. Apart from the workspace, it boasts a range of dining options and a serene courtyard garden podium that serves as a plaza offering breathtaking views of Manila Bay.

The construction of SixE-com Center, likewise, is in full swing and is poised to be the latest addition to MOA Complex’s E-com Series by 2026.

Amid a dynamic blend of shifting needs and aspirations in the contemporary workplace, SM Offices stands tall, not just as a participant but as a visionary leader. Their harmonious meld of architectural prowess, unwavering commitment to sustainability, and a deep-rooted focus on employee well-being sets them apart.

“We don’t just build office spaces; we craft ecosystems where ambition meets opportunity, sustainability partners with growth, and every employee feels valued,” Mr. Ortiga said.

 

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Inflation likely eased in October — poll

Inflation likely eased in October as oil prices declined. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Keisha B. Ta-asan, Reporter

HEADLINE INFLATION likely eased to below 6% in October due to lower prices of some food items and a rollback in pump prices, analysts said.

A BusinessWorld poll of 13 analysts conducted this week yielded a median estimate of 5.7% for the consumer price index (CPI) in October. This is within the 5.1-5.9% forecast of the Bangko Sentral ng Pilipinas (BSP) for the month.

If realized, October inflation would be slower than 6.1% in September and 7.7% in the same month last year. It would also be the slowest rate in two months or since 5.3% in August.

Analysts’ October inflation rate estimates

However, October would still mark the 19th straight month inflation breached the central bank’s 2-4% target band.    

The local statistics agency will release the October consumer price index (CPI) data on Nov. 7 (Tuesday).

“Although still elevated, headline inflation likely eased to 5.7% from 6.1% in the previous month. Global oil prices have tapered from the peak in September, which led to lower fuel prices domestically,” HSBC economist for ASEAN Aris Dacanay said in an e-mail. 

In October alone, oil companies cut pump prices for gasoline by P3.1 per liter, diesel by P0.45 per liter, and kerosene by P4.40 per liter, data from the Energy department showed.

“Our latest data show some easing in the cost of essential food items such as rice, meat, and vegetables, as well as reductions in electricity and pump prices this October. While these factors could alleviate inflationary pressures, they may not be substantial enough to warrant diminished vigilance from the central bank given upside risks,” Security Bank Corp. Chief Economist Robert Dan J. Roces said.

Data from the Agriculture department showed that prices of beef rump ranged from P390 to P480 a kilo as of Oct. 31, narrower than the P390 to P550 band on Sept. 29. Retail prices of cabbage, white potato and chayote also fell.

However, Mr. Dacanay noted headline inflation may have remained sticky in October as rice prices remain elevated although easing from their high in September.

“To balance the welfare between producers and consumers, authorities decided to lift the price cap of rice in the first week of October without a corresponding decrease in tariff rates. This likely led to some upward correction in the price of rice, keeping overall inflation elevated,” he said.

The prices of local regular milled rice ranged from P41 to P44 a kilo as of Oct. 31, while well-milled rice ranged from P45 to P53.

Prices of rice have steadied after President Ferdinand R. Marcos, Jr. lifted the rice price ceiling on Oct. 4. In September, Mr. Marcos ordered prices to be capped at P41 a kilo for regular milled rice and P45 for well-milled rice.

Meanwhile, Philippine National Bank economist Alvin Joseph A. Arogo said in an e-mail that higher jeepney fares and recent minimum wage adjustments may have also put upward pressure on inflation in October.

Starting October, traditional and modern jeepneys increased their fares by P1 to P13 and P15, respectively.   

Wage adjustments in Cagayan Valley, Central Luzon, and Soccsksargen regions took effect on Oct. 16. Regional wage boards recently approved a P30-P35 increase in the daily minimum wages for Ilocos and Western Visayas regions, which will be implemented on Nov. 6.

China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message that higher cooking gas prices and an increase in electricity rates in Metro Manila and Batangas likely added to prices pressures in October.

Liquefied petroleum gas (LPG) prices rose by P3.75 a kilogram in October, its third straight month of increase. AutoLPG prices likewise went up by P2.09 a liter.

Manila Electric Co. hiked the rate for a typical household by P0.4201 per kilowatt-hour (kWh) to P11.8198 in October.

“Meanwhile, core inflation continued its downward trajectory to 5.2% from 5.9% (in September),” Ms. Velasquez said. Core inflation excludes volatile prices of food and fuel.

BACK TO TARGET?
Analysts said it is still possible for headline inflation to return to the 2-4% target band within the fourth quarter this year.

“We think CPI growth within 2%-4% is still achievable within Q4, barring another supply-side shock. However, risks are skewed to the upside and it’s possible that CPI growth will not return to the target band this year,” Makoto Tsuchiya, assistant economist from Oxford Economics, said in an e-mail.

BSP Governor Eli M. Remolona, Jr. earlier said headline inflation may not hit the 2-4% target this year but will instead ease to within target “very briefly” in the first few months of 2024.

He expects inflation will then pick up before easing again in July.

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco in an e-mail said the BSP chief’s inflation projection is “far too pessimistic.”

“I still see a half-decent chance that inflation returns to the 4% mark by the end of this year, and it’s worth noting that core inflation has continued to fall, despite the recent increase in the headline rate in recent months, underscoring the waning underlying price pressures amid the weakening in economic growth,” he said.

Ms. Velasquez said inflation will likely reach the 2-4% target in the first quarter of next year, before rising again through July.

“We anticipate inflation to slow for the remainder of the year barring new shocks. Easing price pressures could hold off additional rate hikes from the BSP,” she said.

Mr. Arogo said his baseline estimates show that inflation may remain above 4% until the third quarter of 2024 due to persistent supply issues and second-round effects.

Last week, the BSP hiked borrowing costs by 25 basis points (bps) in an off-cycle move, bringing the key rate to a fresh 16-year high of 6.5%. The BSP has raised policy rates by 450 bps since May 2022.    

The BSP sees full-year inflation at 5.8% for 2023, before easing to 3.5% in 2024 and 3.4% in 2025. Officials have said the BSP would revise its inflation forecasts on Nov. 16.         

The BSP’s next policy-setting meeting is scheduled on Nov. 16.

Agricultural output may have contracted in Q3

A farmer dries rice grains in Baliuag, Bulacan, Oct. 9, 2023. — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINES’ overall agricultural output likely shrank in the third quarter as bad weather affected crop production and farmers grappled with rising costs, analysts said.

“The third-quarter agricultural performance could be a contraction close to 1% to 2%,” Roy S. Kempis, retired Pampanga State Agricultural University professor, said in a Viber message.

If realized, this would be a reversal of the 1.8% increase in the value of production in agriculture and fisheries at constant 2018 prices in the third quarter of 2022.

This would also mark the second straight quarter of contraction, after agricultural production fell by 1.3% in the second quarter this year.

For the first half, the value of production in agriculture and fisheries inched up by 0.4%. The Department of Agriculture (DA) set a 2.3%-2.5% agricultural output growth target for this year.

The Philippine Statistics Authority (PSA) is set to release third-quarter data on farm output on Nov. 8. The agriculture sector contributes about a 10th of the country’s gross domestic product (GDP) and provides around a quarter of all jobs.

Mr. Kempis said heavy rains in the third quarter caused widespread flooding, which damaged crops and aquaculture assets in several provinces.

“Lower productive efficiency of livestock and poultry (during this period) is also attributed to weather disturbances during the months of July to September,” he added.

The southwest monsoon along with typhoons Egay (international name: Doksuri) and Falcon (international name: Khanun) caused around P12 billion in agricultural damage and losses, the DA said in a Sept. 15 report.

Affected regions with major agricultural losses were Cordillera Administrative Region, Ilocos, Cagayan Valley, Central Luzon, Calabarzon, Mimaropa, Western Visayas, Zamboanga Peninsula, Soccsksargen, and Caraga.

The volume of lost production was estimated at 279,289 metric tons (MT) with 250,174 hectares of farmland affected by the heavy rains. Rice production losses were estimated at P3 billion.

Mr. Kempis said farmers were also affected by higher prices of raw materials and rising production costs, as well as elevated interest rates.

“There may be slight production increases in crops, livestock and poultry, given the relatively favorable weather conditions in other parts of the country. However, these may not be able to outweigh the challenges in the fisheries sector. Decline in fisheries seems expected,” he said.

Production in the fisheries sector contracted by 14.2% in the second quarter of 2023, and by 4.2% in the third quarter of 2022.

Former Agriculture Secretary William D. Dar said in a Viber message that the crop and poultry sectors may have driven agricultural production expansion in the third quarter.

“Drivers for growth will be crops and poultry while livestock and fisheries will have negative growth,” Mr. Dar added.

Elias Jose M. Inciong, president of the United Broiler Raisers Association said he expects the poultry sector to have grown between 4% and 7% in third quarter.

“It could be more, were it not for poor demand and disruptions from imports,” Mr. Inciong said in a Viber message.

Meanwhile, Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said palay production likely had a marginal rise for the third quarter due to lower costs of rice seeds. He noted the price of rice seeds dropped between P1 and P2 per kilogram.

“There is a slight increase in rice (production), compared to last year because the cost of inputs decreased and (due to) larger government subsidies. But this will be offset again if the (continued) tariff reduction in rice is approved,” he said in a Viber message.

Economic managers urged President Ferdinand R. Marcos, Jr. to extend the lower tariff rates on rice, corn, and pork, which is set to expire on Dec. 31. — Adrian H. Halili

Maybank projects 5.2% GDP growth for PHL this year

Commuters line up early at the EDSA Bus Carousel station in Quezon City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINE ECONOMY is unlikely to reach the government’s 6-7% growth target this year, although it is still expected to be the fastest-growing economy in Southeast Asia, Maybank Investment Banking Group (Maybank) said.

In a report dated Oct. 27, Maybank said it sees Philippine gross domestic product (GDP) expanding by 5.2% this year, well below the government’s goal.

Maybank’s 5.2% growth forecast for the Philippines is the fastest in the Association of Southeast Asian Nations (ASEAN) region this year, ahead of Indonesia (5%), Vietnam (4.8%), Malaysia (4%), Thailand (2.9%), and Singapore (0.8%).

It is also above the ASEAN-6 GDP average of 4%, as well as the 4.5% forecast for ASEAN-5, which excludes Singapore.

In the first half, Philippine GDP growth averaged 5.3%. In order to reach the lower end of the government’s target, the economy would need to grow by 6.6% in the second half.

The Philippine Statistics Authority (PSA) is set to release third-quarter GDP data on Thursday (Nov. 9).

For 2024, Maybank projects Philippine GDP to expand by 6.5%, which is the lower end of the government’s 6.5-8% target.

This would still make it the fastest-growing economy in the region for next year, ahead of Vietnam (6%), Indonesia (5.2%), Malaysia (4.4%), Thailand (3.6%) and Singapore (2.2%).

Meanwhile, Maybank said that its outlook for trade in the region will also be “brighter” for next year amid signs of recovery.

“Recent data suggest that green shoots are sprouting, brightening the outlook for trade-sensitive ASEAN economies going into 2024,” it said.

Growth drivers include the strong US economy and the normalization in global consumer spending.

“Replacement tech cycle; falling US inventories; and bottoming out of commodity and chip prices will help drive ASEAN export growth going into 2024,” it added.

Maybank said uneven global growth is one of the risks that could derail trade recovery next year, noting the weak activity in the European Union and subdued demand in China.

Maybank noted Singapore, Vietnam, and Malaysia are more exposed to a trade slowdown.

“Exports are a meaningful driver in Thailand as well, but less so in Indonesia and the Philippines, which have larger domestic markets,” it added.

Other risks to the trade outlook include elevated interest rates in the US, tensions between the US and China, and spillovers from the Israel-Hamas war.

“Risks from China’s real estate sector could yet flare up and sour regional financial market sentiment. We cannot rule out the risk of a shallow US recession in 2024, even as our base case has shifted to a US soft landing,” it added.

On the other hand, Maybank said that ASEAN economies are in “good position” to overcome these shocks due to reduced external debt and strong labor markets.

“Inflation has also receded to more comfortable levels across ASEAN (except the Philippines). An enviable pipeline of manufacturing investments in recent years will help deepen ASEAN’s manufacturing capabilities and increase the supply responsiveness to a global trade recovery,” it added. — Luisa Maria Jacinta C. Jocson

PHL trade in goods seen to remain weak until yearend

ICTSI

By Luisa Maria Jacinta C. Jocson, Reporter

THE GROWTH in Philippine exports and imports will likely remain muted for the rest of the year amid a global economic slowdown and weak external demand, according to the World Bank.

“Overall, the global outlook for goods trade is expected to remain weak for the rest of 2023 as the demand for manufactured goods continues to remain weak in favor of trade in services. This includes the Philippines’ key commodities, such as its electronics exports,” World Bank Philippines Senior Economist Ralph van Doorn told BusinessWorld in an e-mail.

Mr. Van Doorn said that the worldwide economic slowdown “is expected to contribute to a slowdown in global goods trade by about four percentage points in 2023.”

“Of concern for the Philippines is that slowing growth in the region’s largest trading partners, including China where growth for 2023 is projected to be 5.1%, will lead to weaker external demand for the country’s export commodities,” he added.

Data from the local statistics authority showed that the trade deficit narrowed to $36.31 billion in the first eight months of the year from the $41.86-billion deficit a year ago.

As of end-August, exports declined by 6.6% to $47.81 billion while imports fell by 9.6% to $84.12 billion.

For this year, the government is projecting 1% growth for exports and 2% growth for imports. 

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said the Philippines may find it difficult to meet its export and import growth assumptions.

“If you’re talking about in nominal (i.e. not real terms), then the government’s export and import forecasts will almost be impossible to meet,” he said in an e-mail.

“In real terms, though, 1% full-year export growth seems doable, though I’m questioning whether 2% growth for imports is as achievable, simply because we’re seeing a notable slowdown in domestic demand this year, on all fronts, from private consumption to fixed investment,” he added.

Mr. Chanco noted other major exporting countries are showing signs of a rebound.

“The only silver lining is that we’re starting to see signs from other major exporters regionally, such as Singapore and Malaysia, that electronics exports are starting to bottom out and should start to show signs of a recovery, however modest, before the end of this year,” he said.

“The risks will remain weighted to the downside, considering China’s resistance to enact more aggressive stimulus measures to shore up demand,” he added.

Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Danilo C. Lachica said it is still projecting flat growth for electronics exports this year.

“Our growth projection for 2023 is flat. We have not come out with our 2024 projection, but I hope it will be better than 2023,” he said in a Viber message.

SEIPI earlier revised its forecast to flat from 5% due to the weak performance in the first half.

As of end-August, exports of electronic products declined by 4.8% to $26.8 billion year on year. It made up more than half (56%) of total exports during the period.

Kurt Cobain’s guitars, Elvis Presley’s watch up for auction

NIRVANA’s Kurt Cobain stage-played ‘Skystang I’ Fender Mustang electric guitar (left) and his stage-played and smashed band-signed Fender stratocaster electric guitar (above).

TWO of Kurt Cobain’s guitars are up for auction for Played, Worn & Torn: Rock ‘N’ Roll Iconic Guitars and Memorabilia by Julien’s Auctions. The Beverly Hills-headquartered auction house, celebrating its 20th anniversary, has sold items used by music and Hollywood luminaries like Madonna, Michael Jackson, Marilyn Monroe, and Kurt Cobain. The auction house was responsible for the 2016 record-breaking sale of Marilyn Monroe’s dress when she sang “Happy Birthday” for the slain US president John F. Kennedy in 1962. The dress holds the record for one of the most expensive dresses ever sold at auction, at $4.8 million.

Up for grabs in the auction running from Nov. 16 to 18 is Kurt Cobain’s “Skystang I,” his recognizable 1993 Fender MG-69 Mustang. According to the catalogue’s notes, “it is the most well-documented and recognizable of Kurt’s stage instruments, and certainly his most used during the 1993-1994 In Utero touring cycle.” The guitar is estimated to go up to $2 million, with two current bids on Julien’s website at $700,000. Mr. Cobain was the frontman of iconic ‘90s grunge band Nirvana, whose life ended in 1994 by suicide.

Also in the sale is a smashed but signed cream-colored Fender Stratocaster guitar, used onstage by Mr. Cobain in Buenos Aires, Argentina, on Oct. 30, 1992. The guitar is signed by Mr. Cobain and Krist Novoselic in black marker, and then-Nirvana drummer and now Foo Fighters frontman Dave Grohl has written an entire poem on the guitar within a heart-shaped bubble: “Hello. My name is Dave. I like Rave. It’ll drive me to my grave. But I’m not dumb. I play drums with two green thumbs and a sour plumb that makes the roof of my mouth numb – David.” According to the notes, Mr. Cobain typically used Stratocaster guitars towards the end of his sets, “in case he wanted to destroy it.” The guitar is missing strings and hardware and is in two major pieces, namely the body and the neck. The original recipient of the guitar won it in a BBC Radio 1 contest in 1992. This guitar is estimated to sell for up to $700,000, with a starting bid of $125,000.

Meanwhile, Elvis Presley’s 1950s gold-filled Lord Elgin watch is also for sale, accompanied by a poster of him wearing the watch. He owned different versions from the brand in the 50s and 60s. *There is also another piece owned by Mr. Presley in the sale: an 18-karat gold ID bracelet. The bracelet, engraved with the late rock and roll icon’s name, was gifted to him in the 1960s, and he regifted it in the 1970s to Joe Esposito, his best man at his 1967 wedding to Priscilla Presley (whose biopic directed by Sofia Coppola premiered this year). The watch has an estimate price between $20,000 to $30,000, while the bracelet has an estimate price of $30,000 to $50,000.

Other items up for auction include Michael Jackson’s jacket, worn at the 1992-1993 Dangerous World Tour (estimate price: $20,000 to $40,000), a jukebox gifted by Elton John to John Lennon (estimate price: $80,000 to $100,000), Paul McCartney’s tour bus (estimate price: $200,000 to $300,000), and a 1977 Lincoln Continental driven by Elvis Presley, months before his death (estimate price: $200,000 to $300,000).

The auction takes place between Nov. 16 to 18. The sale features 1000 items from a range of artists, from Eric Clapton to Lady Gaga. One can register at julienslive.com to bid online, with a live auction at the Hard Rock Cafe in Nashville, Tennessee. — Joseph L. Garcia

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