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Expelling Palestinians to the Sinai can’t be Israel’s answer

PEA-UNSPLASH

THE PROBLEM with ignoring dead-end signs is that you eventually end up at the bottom of an alley with nowhere to turn. This is where Israel’s government now finds itself, and a leaked document shows how some in the ruling elite are thinking this lack of options through. It’s not pretty.

The Oct. 13 draft document called “Policy Paper: Options for a Policy Regarding Gaza’s Civilian Population’’ comes from Israel’s Intelligence Ministry. It recommends expelling the strip’s population to Egypt’s Sinai desert and locking the door behind them as the best way to secure Israel’s long-term interests.

Other territorial disputes have been ended by expulsions or exchanges of populations, most recently in Azerbaijan’s Nagorno Karabakh enclave. The practice, sadly, isn’t that uncommon, but it’s called ethnic cleansing and is what the international community fought hard to prevent during the Yugoslav wars of the 1990s. Even to entertain the idea in a policy paper suggests that Israel’s government has not recognized where its zero-sum approach to the Palestinian question went wrong. And that’s worrying because the geopolitical ramifications of this dispute run wide and deep. At some point, either this government or a replacement will have to throw its pre-war policies into reverse.

First, some disclaimers. The Intelligence Ministry in Israel is much, much less important than analogues elsewhere. It is in essence a research center under the prime minister’s office, and very much the runt of the litter among the nation’s fabled, if currently bruised, security organs. So, although the government has confirmed the document’s authenticity to a range of media, it also downplayed its importance, describing it as a concept paper that hadn’t been discussed outside the ministry.

In other words, the Biblical expulsion of more than 2 million people isn’t government policy and is unlikely to happen. But in a world where Russia invades Ukraine against its obvious self-interest, and the US is considering re-electing Donald Trump as president, it’s foolish to count on common sense prevailing. The paper is worth reading mainly because it shows the intellectual bankruptcy of parts of the government and adds to the growing debate within Israel over whether Prime Minister Benjamin Netanyahu and his ultra-right coalition are the best people to deal with the crisis caused by Hamas’ Oct. 7 killing spree, in which more than 1,400 Israelis were butchered.

The paper (a translation is here, on the website that broke the story) outlines three possible scenarios for the day after the war. Option A is to withdraw after dealing with Hamas and install the more moderate Palestinian Authority in its place. Option B would be to withdraw and then ask a coalition of Arab nations to organize a post-Hamas administration in Gaza. Option C would move the civilian population across the border into Egypt for their safety, and then not let them back.

There are obvious reasons why option C is unlikely to happen, beginning with the fact that if there’s one thing Egyptians agree on, it’s that they don’t want to take on millions of Palestinian refugees. A second is that this would in effect repeat Israel’s 1948 expulsion of up to 700,000 Palestinians from their homes, a source of instability ever since. It would serve as a call to arms for Palestinians in the West Bank and Arabs across the region, not to mention Iran and its allies. For that reason, if no other, it is unlikely the US or still less Europe would endorse such a solution, leaving Israel in a very lonely position indeed.

It is the paper’s reasoning that’s of interest. It goes through the obstacles to each scenario and concludes that the first suggestion — putting the Palestinian Authority in charge of Gaza — would be the most dangerous. It would, according to the authors, pose an “existential’’ threat to the state of Israel, because it would be seen as a victory for Hamas and, unlike in Germany after World War II, there would be no moderate opposition to Hamas in Gaza to facilitate the area’s “de-Nazification.’’ A new Hamas generation would take charge and restart attacks on Israel, which would then find it difficult to recruit soldiers from a demoralized population. Option B is ruled out for similar reasons.

The potential downsides to C aren’t discussed, other than to acknowledge that Israel would have to work hard to persuade the US and other allies of the policy’s legitimacy, which is, of course, an understatement. The hope, according to the paper, is that unlike the other options, what amounts to ethnic cleansing would help Israel solve the Gaza problem once and for all and deter Hezbollah from attempting an attack on Israel from the North, given the dire consequences that befell Gaza when Hamas did the same.

I don’t envy Israel’s decision makers. A policy that fed Hamas and encouraged the expansion of Jewish settlements on the West Bank to weaken the more moderate Palestinian Authority has left the government with no good choices. It needs to punish and defeat Hamas, all while preventing the war’s expansion and sparing the civilians Hamas has used as a key part of its defenses, not to mention the 238 hostages still in captivity.

It’s an impossible task — according to Gaza’s health authority the death toll from Israel’s retaliation is already over 8,000 — and it needs a far-sighted strategy to have any chance of success. But a second “Nakba,’’ or catastrophe, as the Palestinians call their 1948 expulsions, is neither an effective nor an acceptable way to ensure Israel’s security.

BLOOMBERG OPINION

NGA 911 seeks to improve LGUs’ emergency response capabilities

NGA911.COM

NEW GENERATION Advanced 911 (NGA 911), a cloud-based technology from the United States, is set to expand its partnerships with local government units (LGUs) in the Philippines to help modernize their emergency response capabilities.

NGA 911 Chief Financial Officer Ishka Villacisneros said the company is inking partnerships with different localities in the Philippines as they aim to help make the country’s emergency response most advanced in the region.

“The goal here is to propagate this technology across all LGUs,” Ms. Villacisneros said in an interview last week.

NGA 911 is expected to deploy its system in Morong, Rizal, its first partner LGU in Asia, before the end of the year.

Aside from Morong, the technology is also expected to be deployed in Alaminos, Pangasinan.

NGA 911 uses Internet Protocol technology to facilitate communication between callers and emergency responders, enabling the transmission of voice, text, and video messages through mobile devices and even via social media applications.

Its services include the training of staff, hardware, and software tools, and maintenance of the system.

The technology will connect fire, police, and medical authorities to enable quicker response time, Ms. Villacisneros said.

“When residents of Morong call 911, they won’t go through the national line anymore —they will be directly connected to Morong emergency response team,” she said.

Extended call wait times on the national 911 hotline are due to the influx of spam calls that are hard to filter, Ms. Villacisneros said, adding this can be done by NGA 911.

Instead of having different emergency hotlines for each locality, there is a need to have a unified emergency number for all LGUs, she said.

“The problem in the Philippines is that when you’re in Quezon City and then move to Makati, the emergency numbers often change… So our main goal is to unify the emergency number with the international standard 911,” she added.

The cost of implementing an advanced 911 system in cities and municipalities is not as expensive as it may sound, Ms. Villacisneros said.

Morong is currently classified as second-class, and we also have a fourth-class municipality in our pipeline. If these LGUs can, highly urbanized cities also can,” she said.

“You don’t really need to construct a large building because all the equipment is in the cloud. If you were to see our setup, it’s just about the size of two DVD players,” Ms. Villacisneros added.

Cloud-based technology allows the system to operate even during a calamity, she said.

“With the Philippines having numerous islands and facing calamities, relying on a single system can be risky. But here, we have a backup system. For instance, if one center gets flooded, all systems remain connected,” she added.

“If the provincial center sees municipal centers go down, they can step in, and if needed, even the national center can step in. The province can monitor all their LGU centers seamlessly,” Ms. Villacisneros said. — Jomel R. Paguian

AyalaLand Logistics says land development for Laguindingan project finished

Laguindingan Technopark is ALLHC’s first industrial park in Mindanao. Phase 1 is registered with the Board of Investments (BOI) as a Domestic Industrial Zone.

AYALALAND Logistics Holdings Corp. (ALLHC) has completed the land development works for the first phase of the company’s Laguindingan Technopark industrial estate in Misamis Oriental, the listed company announced on Wednesday.

Phase 1 of Laguindingan Technopark covers 62 hectares out of the industrial estate’s total land area of 105 hectares, the company said in a statement.

The technopark, catering to light and medium non-polluting industries, is located in Barangays Moog and Tubajon in Laguindingan. It forms part of Ayala Land’s 526-hectare Habini Bay mixed-use development.

The industrial estate is adjacent to the Laguindingan Airport, and is located about 36 kilometers from the Cagayan de Oro port.

“Phase 1, covering 62 hectares, has been fully developed, including the access and road network, creating an ideal environment for businesses seeking a dynamic setting and a strategic location for their operations,” ALLHC said.

ALLHC President and Chief Executive Officer Robert S. Lao said: “The doors of Laguindingan Technopark are wide open for companies that are seeking a well-placed operational base.”

“We invite them to establish their footprints and flourish within the estate’s dynamic environment and strategically advantageous location.”

For the first nine months, ALLHC said its net income fell 37% to P354 million from P565 million a year ago due to lower revenues. The company’s consolidated revenues totaled P2.1 billion, down 25% from P2.8 billion last year.

ALLHC shares were last traded on Oct. 31 at P1.69 apiece. — Revin Mikhael D. Ochave

US military bulk buys Japanese seafood to counter China ban

THE UNITED STATES (US) has started bulk buying Japanese seafood to supply its military there in response to China’s ban on such products imposed after Tokyo released treated water from its crippled Fukushima nuclear plant into the sea.

Unveiling the initiative in a Reuters interview on Monday, US ambassador to Japan Rahm Emanuel said Washington should also look more broadly into how it could help offset China’s ban that he said was part of its “economic wars.”

China, which had been the biggest buyer of Japanese seafood, says its ban is due to food safety fears.

The United Nation’s nuclear watchdog vouched for the safety of the water release that began in August from the plant wrecked by a 2011 tsunami. Group of 7 trade ministers on Sunday called for the immediate repeal of bans on Japanese food.

“It’s going to be a long-term contract between the US armed forces and the fisheries and co-ops here in Japan,” Mr. Emanuel said.

“The best way we have proven in all the instances to kind of wear out China’s economic coercion is come to the aid and assistance of the targeted country or industry,” he said.

Asked about Emanuel’s comments at a press conference on Monday, China’s foreign ministry spokesperson Wang Wenbin said: “the responsibility of diplomats is to promote friendship between countries rather than smearing other countries and stirring up trouble.”

The first purchase of seafood by the US under the scheme involves just shy of a metric ton of scallops, a tiny fraction of more than 100,000 tons of scallops that Japan exported to mainland China last year.

Mr. Emanuel said the purchases — which will feed soldiers in messes and aboard vessels as well as being sold in shops and restaurants on military bases — will increase over time to all types of seafood. The US military had not previously bought local seafood in Japan, he said.

The US could also look at its overall fish imports from Japan and China, he said. The US is also in talks with Japanese authorities to help direct locally-caught scallops to US-registered processors.

‘NOT A CHINA HAWK’
Mr. Emanuel, who was former US President Barack Obama’s White House chief of staff, has in recent months made a series of blunt statements on China, taking aim at various issues including its economic policies, opaque decision-making and treatment of foreign firms.

That has come as top US officials, including Secretary of State Antony Blinken, have visited Beijing in an effort to draw a line under strained ties.

Asked if he considered himself hawkish on China, Mr. Emanuel rejected the term and said he was a “realist.”

“I don’t consider it hawkish but just consider it realist and honest. Maybe the honesty is painful, but it’s honest,” he said.

“I’m all for stability, understanding. That doesn’t mean you’re not honest. They’re not contradictory. One of the ways you establish stability, is that you’re able to be honest with each other.”

He said China faced major economic challenges exacerbated by a leadership intent on turning their backs on international systems.

“The kind of loser in this is the youth of China. You now have a situation where 30% of the Chinese youth, one out of three, are unemployed. You have major cities with unfinished housing … you have major municipalities not able to pay city workers. Why? Because China made a political decision to turn their back on a system in which they were benefiting.”

The most recent official youth unemployment data from China, published in July before Beijing said it was suspending publication of the numbers, showed it jumping to a record high of 21.3%.

Mr. Emanuel said he was also keeping an eye on how China’s leadership responds to the recent death of former Premier Li Keqiang, a reformist who was sidelined by President Xi Jinping.

“What’s … interesting to me, that I think is telltale, is how they will be treating his funeral and how they’ll be treating comments about him,” he said.

“I do think that there’s kind of a section of China that sees what kind of policies he was pursuing as kind of the best of China. But that’s up for China to decide.” — Reuters

Philippines lags in 2023 Asia-Pacific AI readiness ranking

The Philippines’ overall artificial intelligence (AI) readiness score worsened to 35.7 (out of 100), lagging behind its peers in the 2023 Asia-Pacific AI Readiness Index by customer relationship management platform company Salesforce. The index measures different components of AI framework and ecosystems intending to help Asia-Pacific economies assess businesses’ and governments’ readiness to adopt, deploy, and integrate AI.

 

Philippines lags in 2023 Asia-Pacific AI readiness ranking

LANDBANK waives fee for small transactions

BW FILE PHOTO

LAND BANK of the Philippines (LANDBANK) has waived the fee charged for fund transfers to other banks worth below P1,000 starting Nov. 1.

“We are thrilled to announce that LANDBANK is waiving transaction fees for small-value online fund transfers to other banks. This is our holiday gift to our valued customers, as we continue to promote safe and convenient digital transactions,” LANDBANK President and Chief Executive Officer Lynette V. Ortiz said in a statement.

The state-run lender will waive fees for customers’ first three online fund transfers or transactions in a day made through the LANDBANK Mobile Banking App (MBA) and its online retail banking channel iAccess.

Meanwhile, fund transfers from and to LANDBANK and Overseas Filipino Bank (OFBank) accounts, regardless of amount, remain free of charge.

For transactions worth P1,000 or above, clients will need to pay the fixed transaction fee of P15, which was previously lowered from P25.

LANDBANK said removing fees for small transactions will help promote financial inclusion and push digitalization in line with the Bangko Sentral ng Pilipinas’ push for both.

In July, LANDBANK removed its daily transaction limit for fund transfers and bills payments.

The bank also increased the daily aggregate amount limit of fund transfers via LANDBANK MBA and iAccess to P100,000 from P50,000 for those made through the InstaPay payment gateway and to P1.5 million from P500,000 for those done via PESONet.

LANDBANK saw its net income rise by 24% to P31.85 billion in the first nine months amid higher loans and yields from its investments. This made up 90.9% of its P35-billion profit target for the year.

This was the highest net income recorded by the bank thus far. It also exceeded LANDBANK’s P26.3-billion earnings target for the first three quarters of the year. — AMCS

Financing growth via more PPP funding

(Part 7)

While the global and regional economic environment this year is worse than last year, there are some emerging opportunities for the Philippines. Among these are rich sovereign wealth funds (SWFs) abroad in search of new investments here because their domestic economies are either crawling or contracting.

Public-private partnership (PPP) investing in the Philippines is one area that many SWFs and big investors abroad find enticing. The Philippine economic team composed of Finance Secretary Benjamin Diokno, Budget Secretary Amenah Pangandaman, National Economic and Development Authority Secretary Arsenio Balisacan and Bangko Sentral officials met with SWFs of Qatar and the United Arab Emirates on Sept. 10-12. President Ferdinand Marcos, Jr. and Diokno met with the SWF of Saudi Arabia plus other investors on Oct. 19.

Last week, Secretary Diokno met with officials of the Federal Holding and Investment Co. (La Société Fédérale de Participations et d’Investissement), Belgium’s SWF on Oct. 28 and he explained the PPP scheme here and co-investment opportunities with the Maharlika Fund in infrastructure and energy. See this BusinessWorld report written by Luisa Jocson, “DoF’s Diokno discusses possible collaboration with Belgian wealth fund” (Oct. 29).

The European Investment Bank (EIB) has also expressed interest to invest in the country’s infrastructure projects when Secretary Diokno visited their headquarters in Luxembourg on Oct. 24. On the same day, the Royal Government of Cambodia-Ministry of Economy and Finance visited the Budget department and Secretary Pangandaman as the Cambodian officials exchanged notes on public financial management.

I checked PPP investments by country using the World Bank database. I notice that many countries have zero or small amount of investment, even among the rich and industrial countries. Perhaps they do not call it PPP and just outright private investment with no bidding for solicited projects or “Swiss challenge” for unsolicited projects.

In Asia, the Philippines is among the big recipients of PPP investments in transportation and energy after China, India and Vietnam. In the Americas, Brazil, Mexico, Colombia and Peru lead. In Europe, it is Turkey and in Africa, it is South Africa.

The PPP Code of 2023 (House Bill 6527 and Senate Bill 2233) bicameral committee report was ratified by the Senate on Sept. 27. When this becomes a law, it will help expand infrastructure funding and implementation, update the approval thresholds for PPP projects while offering a consistent legal framework for PPP at the national and local (provincial, city, municipal) levels. There will be clear delineation of risk- and reward-sharing between government agencies and private sector proponents.

The economic and infrastructure teams have identified 197 huge infrastructure flagship projects costing about P8.74 trillion. Forty-nine of those 197 projects will be funded through PPP, and the Maharlika Fund plus partner SWFs from abroad will play an important role in their financing and implementation.

The PPP Center headed by Executive Secretary Cynthia Hernandez has identified 181 PPP projects (121 national plus 60 local) under implementation with an estimated project cost of P2.66 trillion. It is good that more local government units (LGUs) turn to PPP funding for their local projects and not rely on national funding. This will help foster LGU competition to optimize the full implementation of expanded devolution under the Mandanas ruling.

Meanwhile, the Investment Coordination Committee — Cabinet Committee met on Oct. 27 and the economic team approved social infrastructure projects that cover improving agricultural productivity and maritime safety, among other things.

On enhancing agricultural productivity, the Agriculture and Energy departments must compare notes and goals because many ricelands, cornlands, sugarlands and other crops are converted into solar farms. While this will expand renewable energy to “save the planet,” this will also have adverse effects on food production and will not “save the poor and hungry.”

See related “Financing growth” series in this column: Part 6, “Financing growth: Maharlika Fund and SWFs from abroad” (Oct. 24); Part 5, “Financing growth: Reducing interest payments and spending control” (Oct. 5); Part 4, “Financing growth: A rice tariff cut, an MUP pension cut and reforms in excise tax in mining, oil and coal” (Sept. 26).

 

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

minimalgovernment@gmail.com

Britain brings together political and tech firm leaders to discuss AI

STOCK PHOTO | Image by Rawpixel.Com from Freepik

LONDON — Britain will convene governments, academia and companies working at the cutting edge of artificial intelligence (AI) on Wednesday at the inaugural AI Safety Summit to debate how, and even if, the risks of the technology can be contained.

The meeting is the brainchild of Prime Minister Rishi Sunak, who wants to carve out a role for Britain as an intermediary between the economic blocs of the United States, China, and the European Union.

The 100-strong guest list includes world leaders, tech executives like Elon Musk and ChatGPT boss Sam Altman, and academics for the event at Bletchley Park, home of Britain’s World War Two code-breakers, on Wednesday and Thursday.

Skeptics have questioned how much influence Britain can wield when the United States, the Group of Seven industrialized nations and the European Union are pushing other initiatives, some of which are advanced.

But the summit, which focuses on highly capable general-purpose models called “frontier AI,” has managed to attract US Vice-President Kamala Harris, European Commission President Ursula von der Leyen, China’s vice-tech minister, and United Nations’ Secretary-General António Guterres.

Britain’s technology minister Michelle Donelan said “the right people with the right expertise” would be around the table to discuss how to mitigate the risks of AI.

China will be a key participant, given the country’s role in developing AI technology, although questions have been raised by some lawmakers in Britain about its presence.

The US ambassador to Britain, Jane Hartley, said the AI conversation should be global, but added that the invitation to China had come from London.

“This is the UK invitation, this is not the US,” she told Reuters. “When the UK government was talking to us, we said it’s your summit. So if you want to invite them, invite them.”

Canada’s minister of innovation, science and industry Francois-Philippe Champagne said AI would not be constrained by national borders, and therefore interoperability between different regulations being put in place was important.

“The risk is that we do too little, rather than too much, given the evolution and speed with which things are going,” he told Reuters.

On the agenda are topics like how AI systems might be used by terrorists to build bioweapons and the technology’s potential to outsmart humans and wreak havoc on the world. — Reuters

S&P upgrades Meralco outlook to positive, affirms ‘BBB-’ rating

PHILSTAR FILE PHOTO

S&P GLOBAL Ratings has affirmed its “BBB-” long-term issuer credit rating on Manila Electric Co. (Meralco) with a positive outlook.

“We revised the rating outlook on Meralco to positive from stable,” the credit rating agency said in an e-mailed media release on Wednesday.

A BBB- rating is considered lowest investment grade by market participants, according to S&P.

S&P’s positive outlook on Meralco represents its expectations that the distribution utility’s improving operating performance and clarity on tariffs “could lead to stronger financial metrics over the next 12-24 months.”

“We forecast the company to maintain a healthy ratio of funds from operations (FFO) to debt of 33%-40% over the next two years, above our 30% upside trigger. We expect Meralco to generate steady cash flow from its distribution business, as well as a material earnings recovery in its unregulated power generation business,” the rating firm said.

It expects that the revised contracts of Meralco’s subsidiary, Global Business Power Corp., with its offtakers — which now incorporate fuel pass-through — will mitigate its exposure to volatile prices.

Strong dividends brought about by the utility’s associate/joint-venture companies in the power generation business are also seen to support stronger cash flow over the next two years.

“We see rating upside if the regulatory tariff reset allows Meralco to continue passing through all costs and in a more timely manner,” S&P said.

The Energy Regulatory Commission has said that it has completed the fourth regulatory process (RP) for the National Grid Corp. of the Philippines and plans to initiate the RP for private distribution utilities.

The rating firm also noted that the distribution utility is seen to ramp up its capital expenditure (capex) and investments in power generation assets over the next two to three years due to its “increased appetite” to hold controlling stakes in such assets.

This is compared to its previous preference for holding large equity stakes in joint ventures.

“We expect the company to incur sizable distribution-related growth capex of PHP17 billion-PHP20 billion annually to support network strengthening and asset renewal,” it said.

S&P said it could lower Meralco rating “if the company’s ratio of FFO to debt declines sustainability below 23% or its financial policy becomes more aggressive.”

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

General Retail Price Index in the National Capital Region

RETAIL PRICE GROWTH of general goods in Metro Manila eased to a 17-month low in September, amid the slower annual rise in food costs, the Philippine Statistics Authority (PSA) reported on Wednesday. Read the full story.

 

General Retail Price Index in the National Capital Region

Drop that hotdog if you value your health

YUHENG CHEN-UNSPLASH

THE HEALTH case against regularly eating red meat keeps getting stronger. At what point is the data convincing enough for Americans to change their diets? One recent study found that eating red meat increases the risk of type 2 diabetes; another paper finds a diet low in meat, sugar, and salt but rich in vegetables and legumes is associated with a lower risk of Alzheimer’s.

And both studies — which followed thousands of people for decades — show that replacing even a few servings of meat can have an impact.

There are also implications here for the legions of people expected to try the new class of obesity drugs called GLP-1s. While studies have shown the drugs can induce enough weight loss to improve cardiovascular and kidney health, a lower body mass index (BMI) doesn’t solve all ills. “Losing weight will not entirely prevent you from developing other chronic diseases. You still have to rely on a healthy diet,” says Xiao Gu, a postdoctoral fellow at the Harvard T.H. Chan School of Public Health.

Mr. Gu is one of the authors of the new study linking red meat to diabetes. His team found that people who routinely consume more than a serving per day of red meat have a 50% higher risk of developing type 2 diabetes than those who partake at lower levels.

More than a serving per day might sound like a lot. But as my Bloomberg Opinion colleague Mark Gongloff recently pointed out, Americans are among the world’s most voracious meat eaters, with each person consuming an average of 280 pounds per year, which amounts to about three servings a day.

That meat-heavy diet comes at a clear cost to our climate, as livestock farming is responsible for some 18% of global greenhouse gas emissions. And it is clearly bad for our hearts; the greater a person’s red meat consumption, the greater their risk of cardiovascular disease.

But the link to type 2 diabetes has been a subject of ongoing debate. Some research suggests various components of meat can impair insulin function, whether the culprit is saturated fat, the meat’s iron content, or something in how the meat is prepared — grilling, curing, and overcooking have all been associated with poorer health outcomes. However, causation has been hard to prove: One recent meta-analysis found the link between saturated fat in red meat and diabetes tenuous at best.

Diet’s impact on health is also notoriously hard to study. What we eat changes over time and is just one factor affecting our risk of developing a disease — our genes, environment and lifestyle matter, too, as do socioeconomic factors.

The Harvard team took special care to account for those confounders. They used data from the Nurses’ Health Studies, which have followed more than 200,000 health care professionals for more than 40 years. That meant enough cases of diabetes had accumulated — more than 20,000 — to find the association between meat consumption and diabetes. And because volunteers were interviewed every two to four years, researchers had good information about how participants’ diets changed over time; by contrast, many other studies have only looked at diet at the time a study began.

One of the biggest confounders they had to untangle was body mass index (BMI). If people who eat a lot of red meat eventually gain weight, it could be their weight — not the meat — that leads to insulin resistance. But the researchers found that BMI only accounts for about half of the increase in risk. That means that red meat increases diabetes risk even for people who aren’t overweight. And processed meat — like sausage and salami — increased diabetes risk the most.

If that isn’t enough to convince you to cut back on meat, consider another new study. This one, which mined data from the NYU Women’s Health Study, found that people who ate more red meats, sugar, and full-fat dairy had a higher risk of Alzheimer’s disease.

Between 1985 and 1991, researchers enlisted some 14,000 middle-aged women and followed up with them for decades. Using data from about 5,000 women in the cohort, they found that people adhering to the “DASH” diet (shorthand for Dietary Approaches to Stop Hypertension) had a 17% lower risk of developing two or more cognitive issues later in life. In other words, a heart-healthy diet favoring plant-based foods fared better than those who consumed more red meat, sodium, and sweets.

The NYU team’s findings suggest the dietary choices made in midlife have a far-reaching impact on women’s health, whether it protected (or harmed) their heart or their brain, says Yu Chen, a chronic disease epidemiologist at NYU Langone who led the study.

Both studies do have some limitations. The Harvard study’s dataset is predominantly White women; the NYU study was more diverse but measured cognitive challenges across a short time frame — more follow up would better capture changes in brain health.   

But the take-away from both studies is clear. Your health will be better if you swap some lentils for that steak. — Bloomberg

Spot bitcoin ETFs aim to whip up US demand

ALEKSI RAISA-UNSPLASH

BITCOIN, the original crypto rebel, is racing into the heart of the financial establishment with an exchange-traded fund (ETF) that tracks its price. But will it strike gold?

The world’s biggest cryptocurrency has leapt 28% in October, with investors betting US regulators will give the green light for a spot bitcoin ETF and thereby unleash a new wave of demand.

How much cash could such a fund reel in, though?

Well, it’s hard to say, judging by the wide assortment of estimates from market players, ranging from $3 billion on its first day to $55 billion over five years.

“The analogy that I’m looking at is to gold,” said Dave Mazza, chief strategy officer at ETF provider Roundhill Investments, adding that the gold market had been transformed by the approval of spot ETFs.

He said he expected the first spot bitcoin ETFs on the scene to see a “wave of buying,” echoing the launch of the first-ever gold ETF in 2006 in the US or the bitcoin futures ETF in 2021.

Mainstream investment giants such as BlackRock and Fidelity, as well as crypto-focused firms like Grayscale, have filed applications for spot bitcoin ETFs.

Ranged against the ETF optimists are those traditional investors long wary of crypto who say they won’t be won over by new investment vehicles.

“Not a penny of my clients’ money will find its way into these misbegotten so-called investments,” said George Gagliardi, an investment advisor with Coromandel Wealth Management in Lexington, Massachusetts, who believes cryptocurrencies “have no underlying intrinsic value.”

The prospect of an ETF that offers investors direct exposure to bitcoin has nonetheless buoyed the price of the cryptocurrency, which hit $35,198 last week, its highest level since May 2022.

The metrics investors and analysts use to come up with estimates for demand for an ETF, from the size of the gold ETF market to demand for existing products, vary almost as much as their conclusions. Bitcoin markets are also opaque, with price moves driven mostly by investor sentiment.

US crypto firm NYDIG estimates demand for a spot bitcoin ETF at around $30 billion. Their calculation compares the sizes of the gold and bitcoin ETFs — $210 billion versus $28.8 billion, respectively — and adjusts them for their relative volatility.

“It’s rare to see a brand-new asset class arrive on the ETF market,” said Todd Sohn, ETF strategist at Strategas Securities. “That makes it tough to figure out exactly how much demand is going to materialize.”

Steven McClurg, investment chief at Valkyrie Funds, which has applied for a spot bitcoin ETF, believes one starting point in gauging demand is the size of the Grayscale Bitcoin Trust (GBTC), an open-ended private trust that owns bitcoin directly.

“If you look at the current market capitalization of GBTC — $3.2 billion — that’s probably day-one demand” for a spot bitcoin product, he said.

HALF OF FUNDS ‘GONE IN TWO YEARS’
Some advocates say that financial advisers, pension funds and other money managers — a pool of capital estimated to total around $46.5 trillion by Boston Consulting Group — could be a significant source of demand for a spot bitcoin ETF.

“If BlackRock reaches the market then some percentage of the wire houses and financial advisers will add their fund to platforms,” said Matthew Sigel, head of digital assets research at VanEck, which has a spot bitcoin ETF awaiting SEC approval.

Matthew Hougan, CEO of crypto firm Bitwise Investments, said in an industry panel earlier this month that he expects spot bitcoin ETFs to pull in $55 billion in their first five years. His forecast is based on how demand evolved in smaller markets where spot bitcoin ETFs already exist, such as Canada.

However large demand turns out to be, it is unlikely to sustain offerings from all the asset managers vying for a slice of the action, said Steve Sosnick, chief strategist at Interactive Brokers.

“Are all of them going to be a success? Of course not,” he added. “The ones with the best marketing will succeed, but half will be gone within two years.” — Reuters