FSCC to work on deepening market for corporate bonds

January 8, 2024 | 8:26 pm

THE Financial Stability Coordination Council (FSCC) said it is preparing a work program that aims to further deepen the corporate bond market this year, the Bangko Sentral ng Pilipinas (BSP) said.

The FSCC, in a statement released by the BSP on Monday, described the financial markets as strong amid geopolitical risks last year, but deepening the bond market has yet to be achieved.

“Its work program for 2024, however, will be targeted, engaging the different constituents in the market. The Council’s long-term objective is for a much more diverse set of corporate borrowers to issue bonds, and for the risks to be actively priced while the bond remains outstanding,” the FSCC said.

This will help the economy move forward and become better positioned to attract investors, it added.

According to the FSCC, the current market is characterized by a “risk on” stance, which will likely boost economic activity.

The BSP noted that in the risk on – risk off (RORO) investment paradigm, the perception of market traders will be reflected in financial prices. A “risk on” sentiment shows market optimism and a perception of low risks ahead.

FSCC Chairman and BSP Governor Eli M. Remolona, Jr. said he expects an increase in the funding requirements of corporations during this “risk on” phase.

“The banking system has enough space to support the increased demand for funding. But this is also a great time for us to continue broadening the funding opportunities by having in place a viable and competitive corporate bond market,” he said.

He also said that an active bond market will benefit the financial sector by creating wider access to funding for all types of borrowers. It would also expand opportunities for investors of various risk appetites, thereby better managing risk.

“The FSCC is all about making the different components of the financial system work better with each other. We also need to communicate continuously with stakeholders, so that they can make informed decisions,” Mr. Remolona said.

“All these are collective responsibilities, but the FSCC is more than happy to be at the forefront of all these in pursuit of its responsibility of managing systemic risks,” he added.

The FSCC is an interagency body composed of representatives of the BSP, the Department of Finance, the Insurance Commission, the Philippine Deposit Insurance Corp., and the Securities and Exchange Commission.

In July 2021, Executive Order 144 authorized the FSCC to focus on assessing and implementing policies to prevent systemic risk factors or company- and industry-level events that have the potential to trigger severe instability within entire industries, or even the economy.

The FSCC convenes on a quarterly basis. The regularity of their meetings may be increased “when market conditions warrant.” — Keisha B. Ta-asan

A fresh start: LGU business permit renewal

January 8, 2024 | 8:25 pm

The new year symbolizes a new start and an opportunity to move on from the mistakes made in the previous year. Surely, a lot of people are looking forward to kickstarting 2024 with a bang.

But the other side of the coin is the dread felt by many businesses. Not only does 2024 symbolize a new year, but it also represents the start of one of the busiest months in their working lives. It’s business permit renewal season at local government units (LGUs), which means unending paperwork, bargaining, and phone calls from various people.

LGU permit renewal is one of the most essential processes businesses go through each year. Obtaining a valid business permit allows them to continue to operate in their city. Without such a permit, businesses risk their whole operation getting shut down and being charged a penalty. Although the process may sound tedious, it isn’t always the case, especially for long-standing businesses that have perfected the art of LGU business permit renewal.

Whether you’re new to business permit renewal or consider yourself experienced in the process, here are some of the basics that you should never forget.

BUSINESS PERMITS: WHY AND WHAT FOR?
Consider your business permit as one of the A-B-Cs of your business. It gives Authority to your Business and is issued only if the business is Compliant with the rules and regulations in a particular city. A business permit isn’t just a piece of paper handed to you by your LGU representative. If at all, it is THE piece of paper that every business needs to signify the validity of their existence for the year.

One can’t simply do away with this requirement, regardless of how big or small your business is. The absence of a valid permit can lead to the closure of a business, penalties, and fines. All the hard work and effort you put into building your business could be for nothing if you fail to apply for this coveted piece of paper.

THE NITTY GRITTY OF LGU PERMIT RENEWAL
The requirements for LGU permit renewal usually vary per city or municipality. Notwithstanding, the procedure is similar in almost all cities.

The first step usually begins at the barangay level, where a permit to operate and a clearance must first be obtained. The whole procedure could take no more than a day to accomplish, so be sure to come prepared with the necessary documents.

After the barangay, you can now proceed with the LGU permit renewal. You can start as early as Jan. 1, but no later than Jan. 20. In previous years, some cities extended the period for LGU renewal due to the volume of applications.

Businesses must also prepare for the local business tax they have to pay during renewal. This is perhaps one of the biggest difficulties some businesses face, especially if they’re assessed a large amount. Unfortunately, companies have no other option but to pay the local business tax, as it is mandated by the Local Government Code (LGC). Sections 166 and 167 of the LGC provide that all local taxes, fees, and charges accrue on the first of January each year and must be paid within the first 20 days of January. Failure to make such a payment will subject a business to a surcharge and penalty of no more than 25% of the amount of taxes, fees, or charges not paid on time. In addition, a rate not exceeding 2% will be imposed as interest for every month of unpaid taxes, fees, or charges.

DIGITALIZING LGU PERMIT RENEWAL
In an effort to make renewal accessible and convenient for everyone, some LGUs have adopted a system of online submission. There’s hardly any difference between in-person and online submission, except for the fact that you’re skipping lines and experiencing a much more convenient way of doing business. Businesses can also expect feedback immediately from their LGU assessors so that they’ll be able to work on additional requests, if any. Now that this option has been made available in some cities, it begs the question of when other cities will apply it, especially in cities that are densely populated by corporations.

FINAL WORDS
Mark your calendars because the season for LGU permit renewal has officially begun. It’s a busy start for many companies, which can make the month of January pass by fast. Make sure to take note of the basic requirements and have them ready for submission. More importantly, make sure to get the full set of requirements from your respective LGUs. Now that you know the basics of LGU renewal, you have at least a few bullets in your arsenal as you welcome 2024 by dealing with this tedious task.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

Joselle Mariano is an associate from the Tax Advisory & Compliance division of P&A Grant Thornton. P&A Grant Thornton is one of the leading audits, tax, advisory, and outsourcing firms in the Philippines, with 29 Partners and more than 1000 staff members.

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US investigators recover key part from Alaska Airlines 737 MAX jet

January 8, 2024 | 4:15 pm

WASHINGTON — The US National Transportation Safety Board (NTSB) said late on Sunday the “key missing component” from the Boeing MAX 9 jet involved in an Alaska Airlines emergency landing had been recovered from the backyard of a suburban home.

The plug door tore off the left side of an Alaska Airlines jet on Friday following takeoff from Portland, Oregon, en route to Ontario, California, depressurizing the plane and forcing pilots to turn back and land safely with all 171 passengers and six crew on board.

The Federal Aviation Administration (FAA) on Saturday ordered the temporary grounding of 171 Boeing MAX 9 jets installed with the same panel, which weighs about 60 pounds (27 kg) and covers an optional exit door mainly used by low-cost airlines.

The missing plug door was recovered on Sunday by a Portland school teacher identified only as “Bob” in the Cedar Hills neighborhood who found it in his backyard, NTSB Chair Jennifer Homendy said, saying she was “very relieved” it had been found.

She had earlier told reporters the aircraft part was a “key missing component” to determine why the accident occurred.

“Our structures team will want to look at everything on the door – all of the components on the door to see, to look at witness marks, to look at any paint transfer, what shape the door was in when found. That can tell them a lot about what occurred,” she said.

The force from the loss of the plug door was strong enough to blow open the cockpit door during flight, said Ms. Homendy, who said it must have been a “terrifying event” to experience.

“They heard a bang,” Ms. Homendy said of the pilots, who were interviewed by investigators.

A quick reference laminated checklist flew out the door, while the first officer lost her headset, she said. “Communication was a serious issue… It was described as chaos.”

Ms. Homendy said the cockpit voice recorder did not capture any data because it had been overwritten and again called on regulators to mandate retrofitting existing planes with recorders that capture 25 hours of data, up from the two hours required at present.

EARLIER PRESSURIZATION ISSUES
Ms. Homendy said the auto pressurization fail light illuminated on the same Alaska Airlines aircraft on Dec. 7, Jan. 3 and Jan. 4, but it was unclear if there was any connection between those incidents and the accident.

Alaska Airlines made a decision after the warnings to restrict the aircraft from making long flights over water to Hawaii so that it could return quickly to an airport if needed, Ms. Homendy said.

The Seattle-based carrier said earlier in a response to questions about the warning lights that aircraft pressurization system write-ups were typical in commercial aviation operations with large planes.

The airline said “in every case, the write up was fully evaluated and resolved per approved maintenance procedures and in full compliance with all applicable FAA regulations.”

Alaska Airlines added it has an internal policy to restrict aircraft with multiple maintenance write-ups on some systems from long flights over water that was not required by the FAA.

PLANES GROUNDED
The FAA said on Sunday the affected fleet of Boeing MAX 9 planes, including those operators by other carriers including United Airlines, would remain grounded until the regulator was satisfied they were safe.

The FAA initially said on Saturday the required inspections would take four to eight hours, leading many in the industry to assume the planes could very quickly return to service.

But criteria for the checks have yet to be agreed between the FAA and Boeing, meaning airlines have yet to receive detailed instructions, people familiar with the matter said.

The FAA must approve Boeing’s inspection criteria before the checks can be completed and planes can resume flights. Alaska said late Sunday it had still not received instructions from Boeing.

Alaska Airlines canceled 170 flights on Sunday and a further 60 on Monday and said travel disruptions from the grounding were expected to last through at least midweek. United, which has grounded its 79 MAX 9s, canceled 230 flights on Sunday, or 8% of scheduled departures.

The accident has put Boeing back under scrutiny as it awaits certification of its smaller MAX 7 as well as the larger MAX 10, which is needed to compete with a key Airbus model.

In 2019, global authorities subjected all MAX planes to a wider grounding that lasted 20 months after crashes in Ethiopia and Indonesia linked to poorly designed cockpit software killed a total of 346 people. — Reuters

Asia wealth managers setting up office in Dubai as clients look to diversify

January 8, 2024 | 4:14 pm

HONG KONG/SINGAPORE — A growing number of wealth managers in Asia are setting up offices in Dubai, capitalizing on warming diplomatic ties between China and the Middle East and betting on a surge in demand from clients for geographical diversification.

Dubai, a major financial hub in the Gulf region, is emerging as a preferred wealth hub for many entrepreneurs and rich families in Asia, mainly China, as they look to take advantage of favorable policies and expand their businesses, wealth managers said.

Noah Holdings, one of China’s top wealth managers overseeing round $23 billion in client assets, for example, is expecting to get a business license in Dubai by the end of this year, said Qing Pan, its chief financial officer.

The Dubai office will serve Chinese entrepreneurs who are setting up their businesses in that market, he said.

“Noah’s strategy has been following the growth of clients’ wealth. That’s why we will have to be there and take care of the wealth generated locally,” Mr. Pan said, adding that the firm plans to send some staff from China first and recruit locally later. “Many Chinese entrepreneurs are looking for new markets and diversifying their supply chains, and many are excited by the opportunities offered by the Middle East.”

The Middle East has grown increasingly important to Beijing as its ties with Washington have soured amid disagreements on a range of issues from trade and technology to human rights and Taiwan.

A post-COVID economic rebound, neutral political stance, ease of doing business, convenient time zones, and tax-free status have all contributed to the Middle East attracting droves of wealthy individuals in recent years.

The United Arab Emirates (UAE) has in the recent past introduced incentives such as the ‘golden visa’ system. Dubai launched a ‘family wealth center’ last year to help wealthy individuals and businesses deal with cultural issues and governance.

As a result, western wealth managers including Swiss private bank Lombard Odier are looking to expand their business presence in the region to tap into the influx of expatriates and growing population of rich individuals.

INVESTMENT OPPORTUNITIES
In Asia, Hong Kong and Singapore have long been the most preferred offshore wealth hubs for rich individuals. But some clients are now looking to diversify into other markets and get exposure to new investment opportunities, said wealth managers.

The global number of high-net-worth individuals (HNWI) fell 3.3% to 21.7 million in 2022, but the Middle East’s HNWI population increased 2.8% in the same year, according to Capgemini’s 2023 wealth report.

The UAE saw the highest net inflow of millionaires in the world in 2022, and the private wealth hub was estimated to have received a net inflow of another 4,500 in 2023, according to data from Dubai-based wealth and immigration adviser Henley & Partners.

Betting on the trend, Singapore-based multi-family office Farro Capital set up an office in Dubai last month. Patrick Tsang, chairman of Hong Kong-based single family office Tsang Group, said the firm was planning to launch new offices in Abu Dhabi and Saudi Arabia’s Riyadh this year after its Dubai foray in 2022.

Hong Kong-based Landmark Family Office is also planning to set up an office in Dubai in the coming months. Landmark’s founder and CEO Cameron Harvey said the firm’s Dubai office would be used to help clients based in China, Southeast Asia, and Australia find investment opportunities in the Middle East.

A recent survey of 76 Asia Pacific-based single and multi-family offices, done by Campden Wealth and Raffles Family Office, found average asset allocation to the Middle East region at only 1%, with 7% of the respondents planning to increase that.

“We live in very interesting times where geopolitics have become more critical to families than ever before,” said Manish Tibrewal, co-founder of Singapore’s Farro Capital, adding Dubai’s push to regulate virtual assets, and the golden visa system, among others, have enhanced its appeal. — Reuters

Ignoring Taiwan’s complaints, more Chinese balloons spotted over strait

January 8, 2024 | 4:13 pm

TAIPEI — Taiwan’s defense ministry said it detected three more Chinese balloons flying over the Taiwan Strait on Sunday, one of which crossed the island, the latest in a spate of such balloons the ministry says it has spotted over the past month.

The ministry on Saturday, in a strongly worded statement, accused China of threatening aviation safety and waging psychological warfare on the island’s people with the balloons, days before key Taiwanese elections.

China’s defense ministry, which last month declined to comment on the balloons, did not immediately respond to a request for comment.

The potential for China to use balloons for spying became a global issue last February when the United States shot down what it said was a Chinese surveillance balloon. China said the balloon was a civilian craft that accidentally drifted astray.

Taiwan is on high alert for Chinese military and political activity ahead of this Saturday’s presidential and parliamentary elections. It says China is exerting military and economic pressure in an attempt to interfere in the elections.

China views the island as its own territory, a claim Taiwan’s government rejects.

Since last month Taiwan’s defense ministry has reported several instances of Chinese balloons flying over the Taiwan Strait. It has said over the past week some balloons have flown over Taiwan island near major air bases.

In the latest incident, revealed by the ministry on Monday in its daily report on Chinese military activities over the past 24 hours, it said three balloons had flown over the strait’s sensitive median line on Sunday.

However, only one crossed Taiwan island, right at its southern tip, according to a map the ministry provided.

The balloons all headed east before vanishing, it added.

On Monday, the ruling Democratic Progressive Party’s (DPP) vice presidential candidate Hsiao Bi-khim said China should stop harassing Taiwan.

“We do not welcome the use of intimidation and threats to interfere with the lives of Taiwan’s people at any time,” she said. “Not only this week, we hope peace and stability in the Taiwan Strait can continue for a long time.”

Speaking to reporters on Sunday, Jaw Shaw-kong, the vice-presidential candidate for Taiwan’s largest opposition party the Kuomintang (KMT), called for China to stop sending aircraft and warships in the strait with one week to go before the election.

“Please allow the Taiwan Strait to remain peaceful and allow our election to be very gentle,” Jaw said.

The Taiwan Strait’s median line previously served as an unofficial barrier between Taiwan and China, but Chinese fighter jets, drones and now balloons regularly fly over it.

China’s Taiwan Affairs Office reiterated last week that the strait’s median line “does not exist” and that Taiwan’s ruling Democratic Progressive Party (DPP) is “hyping up the threat from the mainland as the election approaches” and inciting confrontation. — Reuters

New Vulcan rocket blasts off to carry privately built lander to the moon

January 8, 2024 | 4:12 pm

WASHINGTON — A robotic lander built by a private company was bound for the moon on Monday in an attempt to make the first US lunar soft landing in half a century, after launching to space aboard a new Vulcan rocket debuted by a joint venture of Boeing and Lockheed Martin.

Space robotics firm Astrobotic’s Peregrine lunar lander launched to space at 2:18 a.m. EST from Cape Canaveral, Florida on the first flight of Vulcan, a powerful rocket that had been under development for a decade by the Boeing-Lockheed venture United Launch Alliance (ULA).

“Yee haw, I am so thrilled,” ULA Chief Executive Officer (CEO) Tory Bruno said in the company’s launch control room. “This has been years of hard work. So far this has been an absolutely beautiful mission.”

If all goes well, Peregrine would mark the first US soft landing on the moon since the final Apollo landing in 1972, and the first-ever lunar landing by a private company — a feat that has proved elusive in recent years.

“This is the moment we’ve been waiting for 16 years,” Astrobotic CEO John Thornton said. Applause roared in the launch control room when Peregrine was released from its booster stage, setting the golf cart-sized craft on its 46-day journey to the moon.

The mission is the latest in recent years among countries and private companies sprinting to the moon, a reemergent stage of international competition where scientists hope its water-bearing minerals can be exploited to sustain long-term astronaut missions.

The launch of Vulcan, a 200-foot (60-m) tall rocket with engines made by Jeff Bezos’ Blue Origin, was a crucial first for ULA, which developed the rocket to replace its workhorse Atlas V rocket and rival the reusable Falcon 9 from Elon Musk’s SpaceX in the satellite launch market.

The stakes were high for Vulcan. Boeing and Lockheed, which own ULA in a 50-50 split, have been seeking a sale of the business for roughly a year. And the launch was the first of two certification flights required by the US Space Force before Vulcan can fly lucrative missions for the Pentagon, a key customer.

Peregrine is set to land on the moon on Feb. 23 with scientific payloads aboard that will seek to gather data about the lunar surface ahead of planned future human missions. It marks the first trek to the moon’s surface as part of NASA’s Artemis moon program.

India last year became the fourth country to achieve a soft lunar landing after Russia failed an attempt the same month. Private companies betting on a lunar marketplace have had hard times, with Japan’s ispace and an Israeli company crash-landing on their first attempts. — Reuters

Marcos says diplomatic efforts with China heading ‘in poor direction’

January 8, 2024 | 2:31 pm

BBM-Marcos — PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/KRIZ JOHN ROSALES

MANILA — Philippine President Ferdinand R. Marcos, Jr. said a “paradigm shift” was needed in how his country approaches the South China Sea issue, as diplomatic efforts with Beijing were headed “in a poor direction.”

Mr. Marcos, in an interview with Japanese media on Dec. 16, parts of which were shared with Philippine media on Monday, said traditional diplomatic efforts were being disregarded by China, according to a presidential palace release.

“To this point, we have resorted to the traditional methods of diplomacy … but we have been doing this for many years now, with very little progress,” said Mr. Marcos, who was in Japan for Tokyo’s commemorative summit with the Association of Southeast Asian nations (ASEAN).

“It’s time that the countries that feel that they have an involvement in this situation, we have to come up with a paradigm shift,” Marcos said, while reiterating the Philippines wants to avoid violent conflict.

He added his government will continue talking to its partners and come up with a joint position stating their responsibilities as far as the West Philippines Sea is concerned.

The Philippines refers to the part of South China Sea within its exclusive economic zone as the West Philippines Sea.

Last week, Manila and Beijing traded accusations over a collision of their vessels near a disputed shoal in the South China Sea as tensions over claims in the vital waterway escalate.

In addition to the Philippines, ASEAN members Vietnam, Malaysia and Brunei have overlapping claims with China in parts of the South China Sea, a conduit for more than $3 trillion of annual ship-borne commerce.

The Permanent Court of Arbitration in 2016 said China’s claims had no legal basis, a ruling the United States supports but Beijing rejects.

There was no immediate comment from the Chinese Embassy in Manila. — Reuters

Philippine Finance chief sees 100 basis points rate cuts in 2024

January 8, 2024 | 1:48 pm

Diokno-Bloomberg — FINANCE SECRETARY BENJAMIN E. DIOKNO — LISA MARIE DAVID/BLOOMBERG

Philippine Finance Secretary Benjamin Diokno estimates that the central bank can cut its benchmark interest rate by a total of 100 basis points this year as inflation cools to within the 2%-4% target.

Bangko Sentral ng Pilipinas’s target reverse repurchase rate may fall to 5.5% by the end of the year from the current 6.5%, Mr. Diokno told Bloomberg Television on Monday. Monetary easing may start at the second half, said the finance chief who sits in the policymaking Monetary Board.

“A 75-basis-point cut by the Fed this year could actually be matched by the central bank or it could be even 100 basis points,” Mr. Diokno said. “Right now the policy rate is at 6.5%, so I see something like 5.5% by the end of 2024. The timing of course, will be, as I said, data dependent.”

The Philippines’ borrowing cost is at a 16-year high after the BSP’s most aggressive monetary tightening campaign in two decades to rein in stubborn inflation. While consumer prices eased to 3.9% from a year ago in December, the slowest in 22 months, rice costs remain volatile and recently gained the most in 15 years. — Bloomberg

Downey Jr., Randolph win early Golden Globes awards

January 8, 2024 | 10:30 am

BEVERLY HILLS, California – “Oppenheimer” actor Robert Downey Jr. and “The Holdovers” star Da’Vine Joy Randolph won early awards on Sunday at the Golden Globes, Hollywood’s first big celebration since twin strikes shut down most of show business last year.

The champagne-fueled ceremony honored the best of film and television selected by a new group of 300 entertainment journalists from around the world, part of reforms made after a diversity and ethics scandal among Globe voters.

Mr. Downey was named best supporting actor in a movie for portraying the professional nemesis of J. Robert Oppenheimer in director Christopher Nolan’s drama about the making of the atomic bomb. The movie was one of last year’s biggest box office hits.

“A sweeping story about the ethical dilemma of nuclear weapons grosses one billion dollars. Does that track?” Mr. Downey joked before thanking Mr. Nolan and the team behind the film.

Ms. Randolph won the Globe for supporting actress in a movie for her role of a grieving mother in “The Holdovers.” She said she was grateful for the chance to portray the “beautiful and flawed woman.”

“Barbie,” the summer blockbuster starring Margot Robbie as the iconic doll, led all nominees going into the ceremony with nine nods. Robbie appeared at the ceremony in a hot pink gown and boa, a replica of the outfit worn by 1977’s superstar Barbie doll.

The Globes kicked off Hollywood’s annual awards season, which culminates with the Oscars on March 10, and brought top stars together after six months of strikes by actors and writers in 2023.

Jo Koy, a comedian hosting his first major awards show, opened the ceremony with jabs at some of the A-list stars and their projects.

“Oppenheimer,” a historical drama running three hours long, “needed another hour,” Mr. Koy joked. “I felt like it needed some more back story.”

The ceremony was broadcast live on CBS and streamed simultaneously for subscribers to Paramount+ with Showtime.

Pop superstar Taylor Swift joined the Hollywood crowd in a shiny, green gown. The singer was a nominee for “Taylor Swift: The Eras Tour,” her concert film that was in the running in a new category for cinematic and box office achievement.

In the television field, “Succession” was expected to win accolades for its final season about the high-stakes battle for control of a global media empire. It led all nominees with nine nods, followed by restaurant dramedy “The Bear” with five.

There were 27 first-time nominees for this year’s Globes.

Known as a boozy celebration more relaxed than the Oscars, the Globes nearly became extinct. A 2021 Los Angeles Times report revealed ethical lapses and a lack of diversity among the roughly 80 members of the Hollywood Foreign Press Association, the group that previously voted on the Globes. The 2022 ceremony was scrapped while the organization made reforms.

Last year, the Globes were sold to new owners and the association was disbanded. Eldridge Industries and Dick Clark Productions now operate the awards, with a voting body of 300 journalists from 75 countries with 60% racial and ethnic diversity. – Reuters

Australia bans Nazi salute and public display of terror group symbols

January 8, 2024 | 10:26 am

SYDNEY – Laws banning the Nazi salute and the display or sale of symbols associated with terror groups came into effect in Australia on Monday as the government responds to a rise in antisemitic incidents following the Israel-Gaza war.

The law makes it an offense punishable by up to 12 months in prison to publicly perform the Nazi salute or display the Nazi swastika or the double-sig rune associated with the Schutzstaffel (SS) paramilitary group.

The sale and trade of these symbols is similarly prohibited.

Attorney General Mark Dreyfus said in a statement the legislation sent a clear message there was no place in Australia for those who glorify the Holocaust or terrorist acts.

“This is the first legislation of its kind and will ensure no one in Australia will be allowed to glorify or profit from acts and symbols that celebrate the Nazis and their evil ideology.”

Introduced in June and passed in December, the law has taken on new significance amid a surge in antisemitism and Islamophobia following the Oct. 7 attack by Hamas, where some 1,200 were killed and 240 taken hostage, according to Israeli officials.

Unverified footage showing a small group of men outside the iconic Opera house shouting “gas the jews” during a pro-Palestinian protest in October triggered outrage around the world and a police investigation.

Separately, police arrested three men in October for performing the Nazi salute outside the Jewish Museum of Australia. There were more anti-Jewish incidents in October and November last year than the twelve months prior, according to the Executive Council of Australian Jewry.

The new law also bans the public display or trade in symbols associated with prohibited terror organizations, such as Islamic state, Hamas or the Kurdistan Workers’ Party (PKK).

Exemptions exist for academic, educational or artistic use. – Reuters

Boeing checks hit paperwork snag; US investigators search for missing part

January 8, 2024 | 10:22 am

Safety checks on some Boeing jets hit a snag over paperwork on Sunday, as US authorities searched for a missing panel that blew off a new Boeing 737 MAX 9 jet in midair on Friday.

The Federal Aviation Administration on Saturday ordered the temporary grounding of 171 Boeing jets installed with the same panel after the eight-week-old Alaska Airlines jet was forced to make an emergency landing with a gap in the fuselage.

“They will remain grounded until the FAA is satisfied that they are safe,” the agency said in a statement on Sunday.

The door plug tore off the left side of an Alaska Airlines jet following takeoff from Portland, Oregon, en route to Ontario, California, forcing pilots to turn back and land safely with all 171 passengers and six crew on board.

The force of the 737 MAX 9 decompression was so strong it blew open the cockpit door, according to a person briefed on the investigation.

The accident has put Boeing back under scrutiny as it awaits certification of its smaller MAX 7 as well as the larger MAX 10, which is needed to compete with a key Airbus AIR.PA model.

On Saturday, the FAA initially said the required inspections would take four to eight hours, leading many in the industry to assume the planes could very quickly return to service.

But criteria for the checks have yet to be agreed between the FAA and Boeing, meaning airlines have yet to receive detailed instructions, people familiar with the matter said.

The FAA must approve Boeing’s inspection criteria before inspections can be completed and planes can resume flights.

Of the 171 planes covered by the order, 144 are operating in the United States, according to data from aviation analytics firm Cirium. Turkish Airlines, Panama’s Copa Airlines and Aeromexico said they were grounding affected jets.

Typically, whenever planemakers order routine maintenance checks, they get paperwork approved by regulators in advance.

But because the response to the unexpected Alaska Airlines incident was relatively swift, Boeing has not yet secured FAA approval to tell airlines how to carry out the regulator’s order.

The FAA has the final word on how the order is implemented.

FLIGHTS CANCELED

Alaska Airlines said on Sunday it was “just waiting for the direction from the FAA and Boeing so our inspections can begin.” The airline canceled 170 flights affecting nearly 25,000 customers and said travel disruptions from the grounding were expected to last through at least midweek.

United Airlines canceled 230 flights on Sunday, or 8% of scheduled departures, after parking all 79 of its 737 MAX 9s awaiting the inspection directions.

“We’ve begun steps such as removing the inner panel to access the emergency door, and begun preliminary inspections while awaiting final instructions,” United said in a statement.

Boeing declined to comment on whether it had submitted its inspection criteria to the FAA, which had no further comment.

In message to employees on Sunday, Boeing CEO Dave Calhoun said the company’s response to the accident must be the team’s focus right now.

“When serious accidents like this occur, it is critical for us to work transparently with our customers and regulators to understand and address the causes of the event, and to ensure they don’t happen again,” Mr. Calhoun said.

The company plans to hold a company-wide webcast on safety on Tuesday to address its response. It also canceled a leadership summit for company vice presidents previously scheduled for Monday and Tuesday.

SEARCH FOR PANEL

It is too early to say what caused Friday’s event, National Transportation Safety Board (NTSB) Chair Jennifer Homendy told reporters on Saturday.

The aircraft panel is likely to have landed somewhere in the western suburbs of Portland, but has not yet been found.

The NTSB has asked the public for help finding the panel and also plans to ask commercial property owners to check the rooftops of industrial buildings in the area.

The extra exit door is typically installed by low-cost airlines using more seats that require additional evacuation routes. However, those doors are plugged on jets with fewer seats like the Alaska Airlines plane. To passengers, the area looks like a normal window seat.

A cell phone was located Sunday in the search area that may have blown out of the plane, according to the person familiar with the investigation.

Boeing has delivered 214 of the 737 MAX 9 model, or 15% of the more than 1,300 MAX aircraft in service, most of which can still fly, including 737 MAX 9 jets with ordinary doors instead of the replacement panels.

CABIN ISSUES

The fuselage for Boeing 737s is made by Kansas-based Spirit AeroSystems, which also manufactured and installed the plug that suffered the blowout.

Sources familiar with the process said Boeing also has a potential role, since it typically removes the semi-fitted door panel after receiving the fuselages by rail from Spirit. It uses the gap to feed in cabin equipment and speed up production, before completing final installation.

Spirit referred questions to Boeing, which did not respond to a request for comment on who carried out final installation. – Reuters

US opposes displacement of Palestinians, Blinken assures Arab leaders

January 8, 2024 | 10:16 am

AMMAN/DOHA – US Secretary of State Antony Blinken assured Arab leaders on Sunday that Washington opposes the forcible displacement of Palestinians from Gaza or the occupied West Bank, as he looked to kickstart talks on Gaza’s post-war future.

Jordan’s King Abdullah had raised his country’s concerns over displacement with Mr. Blinken during their meeting in Amman, according to a palace statement, as Israel pushes on with its military campaign that has turned much of Gaza to rubble and left its 2.3 million residents on the verge of starvation, according to aid workers.

“Palestinian civilians must be able to return home as soon as conditions allow. They cannot, they must not, be pressed to leave Gaza,” Mr. Blinken said at a press conference following a separate meeting with top Qatari officials in Doha.

Most of Gaza’s residents have been displaced by the conflict, and violence has also flared in the West Bank, including a deadly clash in the city of Jenin on Sunday.

King Abdullah told Blinken that Washington had a major role to play in pressuring Israel into an immediate ceasefire, and warned of the “catastrophic repercussions” of the continuation of the war in Gaza, which began when Hamas attacked Israel on Oct. 7, killing 1,200 people and taking some 240 hostage.

Israel’s subsequent air and ground assault had killed 22,722 Palestinians by Saturday, according to Palestinian health officials.

Mr. Blinken is touring the region amid heightened fears that Israel’s offensive against Palestinian Hamas militants in Gaza will spark a broader regional conflagration.

“This is a moment of profound tension for the region. This is a conflict that could easily metastasize, causing even more insecurity and suffering,” he told reporters in Doha.

The trip comes after a drone strike in Beirut killed a senior Hamas leader and Israel exchanged fire with Iran-backed militia Hezbollah across its northern border with Lebanon. Washington is also rallying allies to deter attacks on Red Sea shipping by Houthi militants who control most of Yemen.

Mr. Blinken arrived in Jordan late on Saturday and met King Abdullah on Sunday before traveling to Qatar for meetings with Emir Sheikh Tamim bin Hamad al-Thani and Prime Minister Mohammed Bin Abdulrahman al-Thani, who also serves as foreign minister.

In Doha, Mr. Blinken said discussions included efforts to free the more than 100 hostages still believed to be held by Hamas after an earlier agreement mediated by Qatar broke down.

Qatar’s prime minister said the killing of a Hamas leader by an Israeli drone strike has affected Doha’s ability to mediate between the Palestinian group and Israel.

Washington wants Israel’s Arab neighbors to play a role in reconstruction, governance and security in Gaza in expectation that Israel’s assault will eliminate Hamas, which has run the territory since 2007, officials have said.

The US delegation aims to gather Arab states’ views on the future of Gaza before taking those positions to Israel, the US official said, acknowledging that stances would be far apart.

Mr. Blinken will end the day in the United Arab Emirates.

HUMANITARIAN CRISIS

In a camp for displaced people in Rafah, southern Gaza, some Palestinians called on Blinken to live up to US calls for a two-state solution to the conflict.

“We hope that it is a visit for our benefit, for peace’s benefit and for the benefit of establishing a Palestinian state next to a Jewish state, in line with U.N. resolutions … and with what America has been calling for,” said Moussa al-Atawneh, a 76-year-old displaced man.

In Amman, Mr. Blinken visited a World Food Programme (WFP) warehouse storing canned food bound for Gaza.

WFP acting country director for Palestine Laura Turner said ahead of a meeting with Blinken that he should push to halt the conflict and for Israel to open border crossings into northern Gaza.

“That’s where the population is that we haven’t been able to access for six weeks and we’re most concerned about,” Turner said, adding that aid sent north from southern Gaza was being seized en route by other Palestinians also in dire need of food.

Mr. Blinken said the US was working to keep aid routes into the strip open and to multiply them.

“We are intensely focused on the very difficult and indeed deteriorating food situation for men, women and children in Gaza, and it’s something we’re working on 24/7,” Mr. Blinken said. – Reuters

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