Strength in leadership: The women of Global Dominion

March 6, 2025 | 1:26 pm

By Sarah Tabing

March marks International Women’s Month, a time to recognize and celebrate the remarkable contributions of women across various industries. At Global Dominion, we take immense pride in our commitment to fostering an inclusive and diverse workplace — one where women thrive and lead. With women comprising 51% of our workforce and an impressive 57% holding senior management positions, we stand as a testament to the power of gender diversity in driving organizational success.

At Global Dominion, we are guided by our core values: Grit, Excellence, Innovation, Integrity, Fun, and Care. These values empower our women leaders to break boundaries, shatter stereotypes, and drive positive change within the organization and beyond.

“We recognize that our strength comes from the diversity and dedication of our people. Empowering women in leadership is not just about representation — it is about fostering an environment where they can thrive, innovate, and make impactful decisions. Our women leaders play a crucial role in driving our mission forward, ensuring that we continue to provide simplified financing solutions that uplift Filipino families and businesses. This Women’s Month, we celebrate the incredible women of GDFI and reaffirm our commitment to creating opportunities for growth, leadership, and success,” said Patricia Poco-Palacios, President and Managing Director of Global Dominion.

Through mentorship programs, leadership training, and career development initiatives, Global Dominion invests in the professional growth of our female employees, ensuring that more women have access to the tools and opportunities needed to reach their full potential. As an organization, we remain steadfast in our mission to create an equitable and empowering workplace.

As we celebrate International Women’s Month, let us remain steadfast in advancing gender equality, fostering talent, and shaping a future where leadership is defined by dedication, resilience, and excellence — the very qualities that the women of Global Dominion exemplify each day.

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Shipping firms pull back from Hong Kong to skirt US-China risks

March 6, 2025 | 11:34 am

shipping-port-container — WILLIAM WILLIAM-UNSPLASH

HONG KONG/LONDON – Some shipping companies are discreetly moving operations out of Hong Kong and taking vessels off its flag registry. Others are making contingency plans to do so.

Behind these low-profile moves, six shipping executives said, lie concerns that their ships could be commandeered by Chinese authorities or hit with U.S. sanctions in a conflict between Beijing and Washington.

Beijing’s emphasis on the role of Hong Kong in serving Chinese security interests and growing U.S. scrutiny of the importance of China’s commercial fleet in a possible military clash, such as over Taiwan, are causing unease across the industry, the people told Reuters.

The U.S. Trade Representative’s office last month proposed levying steep U.S. port fees on Chinese shipping companies and others that operate Chinese-built vessels, to counter China’s “targeted dominance” of shipbuilding and maritime logistics.

Washington in September warned American businesses about growing risks of operating in Hong Kong, where the U.S. already applies sanctions against officials involved in a security crackdown.

Hong Kong for more than a century has been a hub for shipowners and the brokers, financiers, underwriters and lawyers supporting them. Its maritime and port industry accounted for 4.2% of GDP in 2022, official data show.

The city’s flag is the eighth most-flown by ships worldwide, according to VesselsValue, a subsidiary of maritime data group Veson Nautical.

Reuters interviews with two dozen people, including shipping executives, insurers and lawyers familiar with Hong Kong, revealed growing concern that commercial maritime operations could be ensnared by forces beyond their control in a U.S.-China military clash.

Many pointed to China’s intensified focus on national security objectives; trade frictions; and the broad powers of Hong Kong’s leader, who is accountable to Beijing, to seize control of shipping in an emergency.

“We don’t want to be in a position where China comes knocking, wanting our ships, and the U.S. is targeting us on the other side,” said one executive, who like others was granted anonymity to discuss a sensitive issue.

The concerns of shipowners and their actions to curb exposure to Hong Kong have not been previously reported. The perceptions of risk have grown in recent years, coinciding with a tightening security climate in the Chinese-ruled city and tensions between the world’s two largest economies.

TURNING TIDE

Commercial ships must be registered, or flagged, with a particular country or jurisdiction to comply with safety and environmental rules.

Despite an influx of Chinese-operated ships onto Hong Kong’s registry, the number of oceangoing vessels flagged in the city fell more than 8% to 2,366 in January from 2,580 four years earlier, according to independent analysis by VesselsValue. Government data show a similar drop.

Among the ships that left Hong Kong’s registry, 74 re-flagged to Singapore and Marshall Islands in 2023 and 2024, chiefly dry-bulk carriers designed to transport commodities such as coal, iron ore and grain. Some 15 tankers and seven container ships separately left the Hong Kong registry for those flags, according to VesselsValue.

The outflow of ships since 2021 marks a reversal for Hong Kong’s registry, which official data show grew roughly 400% in two decades following 1997.

In response to Reuters questions, Hong Kong’s government said it was natural for shipping companies to review operations given changing geopolitical and trade circumstances, and normal for the number of ships on registries to fluctuate in the short term.

Hong Kong would “continue to excel as a prominent international shipping centre”, a spokesperson said, outlining a range of incentives for shipowners, including profits tax breaks and green subsidies.

Neither the laws governing the registry nor emergency provisions empowered Hong Kong’s leader to commandeer ships to serve in a Chinese merchant fleet, the spokesperson said.

The spokesperson declined to elaborate when asked about industry players’ concerns over how colonial-era emergency powers might be applied during a U.S.-China conflict. The provisions allow the city’s leader to make “any regulations whatsoever”, including taking control of vessels and property.

China’s defense and commerce ministries didn’t respond to questions about the role of a merchant fleet in Beijing’s warfighting plans, the potential involvement of Hong Kong-flagged vessels, and the worries of commercial shipowners.

The U.S. Treasury and Pentagon declined to comment about potential sanctions, shipping executives’ concerns, and the role of Hong Kong-registered vessels in a Chinese merchant fleet.

Lawyers and executives say ships can be re-flagged for various reasons through sale, charter or redeployment to different routes.

Basil Karatzas, U.S.-based consultant with Karatzas Marine Advisors & Co, said Singapore had become the preferred domicile for companies with lesser exposure to Chinese shipping and cargo trade, because it offered many efficiencies, including its legal system, but less risk than Hong Kong.

Singapore’s Maritime and Port Authority said decisions about domiciles and flagging were based on commercial considerations. It had not observed any “significant change” in the number of Hong Kong-based shipping companies relocating operations or re-flagging vessels to Singapore.

MERCHANT FLEET

Hong Kong’s shipping registry is widely regarded for its safety and regulatory standards, executives and lawyers say, allowing its ships to pass easily through foreign ports. Hong Kong’s flag is now flown by many of China’s state-owned international vessels.

In a conflict, these tankers, bulk carriers and large container vessels would form the backbone of a merchant fleet serving the People’s Liberation Army to supply China’s oil, food and industrial needs, according to four security analysts and PLA military studies.

By contrast, the U.S. has a small commercial shipbuilding industry and far fewer ships under its flag.

While China’s state-owned fleet is growing in size, it would be a target for the U.S. in a military clash, and Beijing would likely require other vessels to ensure supplies given its vast needs and reliance on international sea lanes, three analysts said.

Strategic maritime operations have surfaced on President Donald Trump’s radar. In his inauguration speech in January, Trump threatened to “take back” the Panama Canal, which he said had fallen under Chinese control.

He did not give specifics, but Mr. Trump’s remarks focused attention on two Panama ports operated by a subsidiary of Hong Kong conglomerate CK Hutchison Holdings. The group, which didn’t respond to questions about Trump’s comments, agreed this week to sell a majority stake in the subsidiary to a consortium of investors led by BlackRock, giving U.S. interests control over the ports.

Mr. Trump told Congress on Tuesday that his administration will create an office of shipbuilding in the White House and offer new tax incentives for the sector.

A U.S. congressional study in November 2023 stated that “cargo ships typically transport 90% of the military equipment needed in overseas wars”. It noted that Chinese shipyards had 1,794 large oceangoing ships on order in 2022, compared with five in the U.S.

Merchant vessels were vital in Britain’s long-range mission to retake the Falkland Islands from Argentina in 1982. And UK-flagged commercial ships operating out of Hong Kong – many owned by local firms dependent on or controlled by China – supplied communist Hanoi during the Vietnam War, frustrating the U.S., declassified CIA documents show.

The need for a strong Chinese merchant fleet to help build China’s maritime power was outlined by President Xi Jinping in a Politburo study session in 2013.

Over the last decade, Chinese government and military documents and studies have highlighted the dual-use military value of China’s merchant ships.

Regulations enacted in 2015 required Chinese builders of five types of commercial vessels – including tankers, container ships and bulk carriers – to ensure they could serve military needs, according to state media.

Since then, the state-owned COSCO line has grown significantly.

Public COSCO documents show China is placing political commissars – officers who ensure Communist Party goals are ultimately served – on nominally civilian ships.

In January, the U.S. blacklisted COSCO subsidiaries for what it said were links to the Chinese military.

COSCO did not respond to questions about its deployment of commissars, the U.S. restrictions and what role the company’s ships, including Hong Kong-flagged ones, might play in a wartime scenario.

‘REALLY DE-RISKED’

Hong Kong remains an important base for shipowners, despite the geopolitical challenges. But some are quietly hedging their bets.

One company founded in Hong Kong in 2014, London-listed Taylor Maritime TMI.L, now has a smaller presence in Hong Kong after making several strategic moves over the past few years.

Since 2021, it has kept its ships flagged in the Marshall Islands and Singapore. Its offices are in London, Guernsey, Singapore, Hong Kong and Durban.

The firm “really de-risked Hong Kong”, said a person familiar with the matter, citing investors’ concerns about a Chinese invasion of Taiwan and the Communist Party’s increasing control of Hong Kong.

A Taylor Maritime spokesperson said that initially, the company moved its Asia-based commercial teams to Singapore from Hong Kong to be closer to clients.

With its acquisition of shipping company Grindrod, which had its Asia office in Singapore, Taylor Maritime expanded its operation there and relocated some functions from Hong Kong, to the point where Singapore became its primary Asia hub, the spokesperson added.

Hong Kong-listed Pacific Basin Shipping 2343.HK has traditionally flagged its 110-strong fleet of bulk carriers in Hong Kong but is drafting contingency plans to register them elsewhere as it gauges potential risks, said two people familiar with the matter.

A Pacific Basin spokesperson said the company was constantly evaluating geopolitical risks but that its fleet was still flying the Hong Kong flag, “which at least for now outweigh(s) the challenges”.

“Being in Hong Kong positions us close to China’s 40% share of global dry bulk import/export activity and close to Asia’s strong economic and industrial growth regions,” the spokesperson said.

Angad Banga, chairman of the Hong Kong Shipowners Association, said shipping firms adjusted contingency plans based on risk assessments in a complex geopolitical environment but he had not encountered concerns about the commandeering of vessels.

“While some may be reviewing operational strategies, we as an organisation do not to see any widespread exodus or loss of confidence in Hong Kong,” Banga told Reuters, adding that the city remained attractive for maritime commerce.

Yet some industry figures described a broad unease about Hong Kong that was affecting their planning.

Three lawyers said that until recent years, contracts hammered out for the growing number of ships built in China and financed by Chinese banks typically stipulated that they must fly the Hong Kong flag.

But over the last two years, some have included a caveat demanded by owners to provide flexibility: a few other prominent flags are listed as options alongside Hong Kong, the lawyers said. Reuters could not independently verify the changes.

Beyond China’s military modernization and its refusal to renounce the use of force to seize Taiwan, Beijing officials have stressed the importance of Hong Kong in fulfilling national security priorities.

Three executives and two lawyers told Reuters that sweeping security legislation, first imposed on Hong Kong in July 2020 and strengthened in March 2024, had added to the dangers.

The lawyers said any move by Hong Kong’s leader to commandeer vessels in an emergency might prove difficult in practice, as locally registered ships often plied routes far from Hong Kong. But such long-standing powers now had to be viewed through a national security lens, they said.

Some shipowners wouldn’t object to an official request to turn over their vessels, either out of patriotism or the potential to profit from a crisis, one lawyer said.

But “it is better not to be in a position where you might even be asked”, said another veteran lawyer.

“It was not an issue just a few years ago, in what is clearly a redrawn national security map.” – Reuters

Trump plans executive order to strengthen US shipbuilding, blunt China domination

March 6, 2025 | 11:30 am

cranes-2695007_1280 — STOCK PHOTO | Image by Mateusz Dietrich from Pixabay

LOS ANGELES/WASHINGTON – The U.S. plans to levy fees on imports arriving on Chinese-made ships and offer tax credits to resuscitate domestic shipbuilding and reduce China’s grip on the $150 billion global ocean shipping industry, a White House document seen by Reuters shows.

President Donald Trump is drafting an executive order that would also establish a Maritime Security Trust Fund as a dedicated funding source and create shipbuilding incentives through the use of tax credits, grants and loans, according to a draft fact sheet of the 18-point plan.

“The White House is standing up an office at the National Security Council to lead a whole-of-government effort to strengthen the maritime industrial base,” the document said, following Mr. Trump’s announcement of the plans during an address to Congress on Tuesday.

The Republican president’s initiative won rare praise from Jake Sullivan, national security adviser to former President Joe Biden, who said decades of unfair trade practices by China had negatively affected U.S. commercial and military shipbuilding.

“American shipbuilding is critical to protecting our national and economic security. Now is the time to act — to address the impact of China’s policies and to replenish American maritime capacity and power,” Mr. Sullivan told Reuters.

Republican and Democratic U.S. lawmakers for years have warned about China’s growing dominance on the seas and diminishing U.S. naval readiness. The pending executive order appears to be influenced by existing proposals, including legislation with bipartisan backing.

Mr. Trump’s initiative comes two months after the Biden administration concluded a nearly year-long probe requested by the United Steelworkers and other unions, which found that China uses unfair policies and practices to dominate the sector.

Michael Wessel, president of the Wessel Group, who helped coordinate that investigation under Section 301 of the Trade Act of 1974, said Mr. Trump’s announcement was an encouraging step forward after years of efforts by unions to revitalize the industry.

“We can still be the industrial leaders of the world – but only if we act,” he said, adding that a range of tools was needed, including investments, tax credits and efforts to strengthen both supply chains and the workforce.

Mike Waltz, Mr. Trump’s national security adviser and a former House Republican from Florida, last year introduced a bill with Democratic Senator Mark Kelly from Arizona to reinvigorate commercial and military shipbuilding in the United States.

The U.S. Trade Representative’s office last month proposed charging up to $1.5 million for Chinese-built vessels entering U.S. ports as part of its probe of China’s growing domination of the global shipbuilding, maritime and logistics sectors.

Mr. Trump on Tuesday hailed an unrelated deal led by U.S. firm BlackRock to buy most of the $22.8 billion ports business of Hong Kong conglomerate CK Hutchison.

The deal will give the U.S. consortium control of key Panama Canal ports amid White House calls to remove them from what it says is Chinese ownership.

“My administration will be reclaiming the Panama Canal, and we’ve already started doing it,” Trump told the U.S. Congress.

That BlackRock announcement followed last month’s reintroduction of bipartisan legislation that would require the Secretary of State and the Secretary of Defense to develop a strategy to monitor China’s efforts to build, buy, or own strategic ports.

Other measures in the draft document would direct Elon Musk’s Department of Government Efficiency to review government procurement processes, including at the U.S. Navy, increase wages for nuclear shipyard workers and develop a security strategy for the Arctic. – Reuters

Elon Musk says Post Office, Amtrak should be privatized

March 6, 2025 | 11:25 am

WASHINGTON – Billionaire Elon Musk, who is advising President Donald Trump on plans to radically shrink the U.S. government, said on Wednesday that the U.S. Postal Service and passenger railroad Amtrak should be privatized.

“I think logically we should privatize anything that can reasonably be privatized,” Mr. Musk said at a Morgan Stanley conference. “I think we should privatize the Post Office and Amtrak for example… We should privatize everything we possibly can.”

He said he thought those actions would require congressional approval.

Last month, Mr. Trump said he was considering merging the Postal Service with the U.S. Commerce Department, a move Democrats said would violate federal law.

The Postal Service has lost more than $100 billion since 2007, including $9.5 billion in the 12 months ending September 30. Earlier this month, however, it reported a fourth-quarter profit of $144 million. As email boomed, the agency has been hurt by an 80% decline in first-class mail volume since 1997. Volume is now at the lowest level since 1968.

USPS declined to comment.

Amtrak said in December ridership topped 2019 pre-COVID-19 levels for the first time in 2024 when it increased 15% over 2023 to a record 32.8 million customer trips. The rail operator reported an adjusted operating loss of $705 million for the 12 months ended September 30, down 9% versus 2023.

Mr. Musk said that in comparison with Chinese high-speed rail, Amtrak “is a sad situation… It will leave you with a very bad impression of America.”

Asked about Mr. Musk’s comments, Amtrak said Wednesday its “business performance is strong. Ridership and revenue are at all-time highs…. The train service we operate across our nationwide network, as mandated by law, is on-track to reach operational profitability – for the first time in history – during this administration.”

Amtrak in March said it was boosting passenger services on the East Coast as it aims to double ridership nationwide by 2040 to 66 million passengers.

Congress approved $66 billion for rail projects as part of a massive infrastructure bill in 2021, with $22 billion dedicated to Amtrak over five years on top of regular funding.

President Donald Trump during his first term repeatedly sought to cut funding to Amtrak, which received about $2.4 billion in annual federal support last year. – Reuters

Trump’s tariffs and threatened trade actions

March 6, 2025 | 11:22 am

U.S. President Donald Trump has made numerous tariff threats since returning to office on January 20, ranging from a universal duty on imports to targeted tariffs on specific sectors or countries, in a bid to get others to meet his policy demands.

Mr. Trump’s threats have changed over time, leaving other nations and businesses unclear about what is to come next and creating uncertainty for consumers, triggering a recent stock market selloff.

Here is a roundup of Mr. Trump’s trade-related steps and threats.

BROAD TARIFFS

A cornerstone of Mr. Trump’s vision includes a phased rollout of universal tariffs on all U.S. imports.

Last month, Mr. Trump tasked his economics team with devising plans for reciprocal tariffs on every country that taxes U.S. imports, as well as to counteract non-tariff barriers such as vehicle safety rules that exclude U.S. autos, and value-added taxes that increase their cost.

Whereas tariffs were once the mainstay of U.S. tax revenues, in recent decades they have dwindled to a fraction of the country’s tax receipts. Economists say Trump’s policies will be inflationary as importing businesses, which pay tariffs, will likely pass added costs to consumers.

Global trading partners potential counter-tariffs targeting U.S. agricultural, energy and machinery exports could escalate into a worldwide trade war, creating uncertainty for businesses and investors.

SPECIFIC COUNTRIES

Mr. Trump’s tariff proposals target several key trade partners; some are listed below.

MEXICO AND CANADA: The two countries were the largest trade partners of the U.S. in 2024 through November, with Mexico ranked first. Mr. Trump’s new 25% tariffs on imports from Mexico and Canada took effect on March 4 as a retaliation for migration and fentanyl trafficking.

The tariffs included a 25% levy on most goods from Mexico and Canada, along with a 10% duty on energy imports from Canada. Canada primarily exports crude oil and other energy goods, as well as cars and auto parts within the North American auto manufacturing chain. Mexico also exports various goods to the U.S. in the industrial and auto sectors.

Canada hit back with 25% tariffs on C$30 billion ($20.7 billion) worth of U.S. imports, including orange juice, peanut butter, beer, coffee, appliances and motorcycles.

The Canadian government added that it would impose additional tariffs on C$125 billion of U.S. goods if Mr. Trump’s tariffs were still in place in 21 days, with the potential inclusion of vehicles, steel, aircraft, beef and pork.

Mr. Trump, in his March 4 address to Congress, said further tariffs would follow on April 2, including “reciprocal tariffs” and non-tariff actions to address trade imbalances.

U.S. Commerce Secretary Howard Lutnick said U.S. officials might still work out a partial resolution with the two neighbors, adding that they needed to do more on the fentanyl front.

CHINA: Mr. Trump levied 10% tariffs across all Chinese imports into the U.S., effective on February 4, following repeated warnings to Beijing about insufficient measures to halt the flow of illicit drugs into the United States.

He followed that up with another 10% duty on Chinese goods, effective March 4, stacking on top of tariffs of up to 25% imposed on Chinese imports during Trump’s first term.

China responded by announcing additional tariffs of 10% to 15% on certain U.S. imports from March 10 and a series of new export restrictions for designated U.S. entities. Later it raised complaints about the U.S. tariffs with the World Trade Organization.

EUROPE: Mr. Trump said the EU and other countries have troubling trade surpluses with the United States. He has said the countries’ products will either be subject to tariffs or he will demand they buy more oil and gas from the U.S., even though U.S. gas export capacity is near its limits.

The European Commission said in a statement on February 14 that it viewed the “reciprocal” trade policy as a step in the wrong direction.

Mr. Trump has threatened a 25% “reciprocal” rate on European goods. Among vulnerable industries is pharmaceuticals, as U.S. firms such as Johnson & Johnson and Pfizer have large plants in Ireland, which is also a major exporter of medical devices.

PRODUCTS

AUTOMOBILES: Mr. Trump said on March 5 that he will exempt some automakers such as the Detroit Three — Ford, General Motors and Jeep-owner Stellantis — from his punishing 25% tariffs on Canada and Mexico for one month as long as they comply with an existing free trade agreement.

Vehicles, as per those rules, require 75% North American content in order to get duty-free access to the U.S. market.

The exemption also would benefit some foreign brand automakers with large U.S. production footprints, including Honda and Toyota, but some competitors that don’t comply would have to pay the full 25% tariffs.

Mr. Trump had also floated the idea of 100% or greater tariffs on other vehicles, including potentially EVs. The automobile industry accounted for imports of more than $202 billion from Canada and Mexico combined in 2024.

METALS: On February 9, Mr. Trump said he was going to put tariffs on imports of all steel and aluminum, used by automakers, aerospace companies, and in construction and infrastructure.

The U.S. is the world’s largest aluminum importer and the second-largest steel importer, with more than half of those volumes coming from Canada, Mexico and Brazil.

Mr. Trump on February 25 ordered a new probe into possible new tariffs on copper imports to rebuild U.S. production of the metal critical in electric vehicles, military hardware, semiconductors and a wide range of consumer goods.

The U.S. produces domestically just over half the refined copper it consumes each year.

SEMICONDUCTORS: Mr. Trump said tariffs on semiconductor chips would also start at “25% or higher,” rising substantially over the course of a year, but didn’t clarify when these will come into effect.

Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, makes semiconductors for Nvidia, Apple and other U.S. clients, and generated 70% of its revenue in 2024 from customers based in North America.

LUMBER: Mr. Trump on March 1 ordered a new trade investigation that could heap more tariffs on imported lumber, adding to existing duties on Canadian softwood lumber and 25% tariffs on all Canadian and Mexican goods.

US cuts intelligence sharing for Ukraine, adding pressure for Russia peace deal

March 6, 2025 | 11:18 am

Ukraine and Russian flags — UKRAINE and Russian flags are seen through broken glass in this illustration taken March 1, 2022. — REUTERS

WASHINGTON/NEW YORK – The U.S. has paused intelligence-sharing with Ukraine, CIA Director John Ratcliffe said on Wednesday, piling pressure on Ukrainian President Volodymyr Zelenskiy to cooperate with U.S. President Donald Trump in convening peace talks with Russia.

The suspension, which could cost lives by hurting Ukraine’s ability to defend itself against Russian missile strikes, followed a halt this week to U.S. military aid to Kyiv. It underscores Trump’s willingness to play hardball with an ally as he pivots to a more conciliatory approach to Moscow from previously strong U.S. support for Ukraine.

The pressure appears to have worked, with Trump on Tuesday saying he received a letter from Mr. Zelenskiy in which the Ukrainian leader said he was willing to come to the negotiating table.

“I think on the military front and the intelligence front, the pause I think will go away,” Mr. Ratcliffe told Fox Business Network.

“I think we’ll work shoulder to shoulder with Ukraine as we have to push back on the aggression that’s there, but to put the world in a better place for these peace negotiations to move forward,” he said.

A source familiar with the situation, speaking on condition of anonymity, said the Trump administration had halted “everything,” including targeting data that Ukraine has used to strike Russian targets.

A second source said intelligence-sharing had only “partially” been cut but was unable to provide more detail.

Washington on Monday halted military aid to Kyiv following a disastrous Oval Office meeting on Friday when Mr. Trump and Mr. Zelenskiy engaged in a shouting match before the world’s media.

The clash delayed the signing of a deal that would give the U.S. rights to revenue from Ukraine’s critical mineral deposits, which Trump has demanded to repay U.S. military aid.

Mr. Zelenskiy said on Wednesday there had been “positive movement” on the issue and officials from the two countries could meet again soon.

The White House said it is reconsidering its pause in funding for Ukraine and talks between the two countries over a minerals deal were ongoing.

A senior administration official said on Wednesday that the signing was expected to happen soon and to be the first step in a longer negotiation between Ukraine, Washington and Russia on ending the war.

The Ukrainian embassy in Washington and Ukraine’s foreign ministry did not immediately respond to a request for comment.

In an address to Congress on Tuesday evening, Mr. Trump said Kyiv was ready to sign a minerals deal.

Mr. Trump also said he had been in “serious discussions with Russia” and received strong signals that it was ready for peace.

“It’s time to end this senseless war. If you want to end wars, you have to talk to both sides,” he said.

EUROPE SCRAMBLING

Several Democrats criticized the intelligence-sharing suspension. Senator Mark Warner, the vice chairman of the Senate intelligence committee, said the “ill-advised decision” showed that Trump had given American power to Russia.

“Let me be clear: Cutting off intelligence support to our Ukrainian partners will cost (Ukrainian) lives,” the Virginia Democrat said in a statement.

A Russian missile struck a hotel in the central Ukrainian city of Kryvyi Rih late on Wednesday, killing two people and injuring seven, emergency officials said.

European countries are scrambling to boost defense spending and maintain support for Ukraine. Diplomats said France and Britain are aiming to finalize a peace plan to present to the U.S., while the Dutch government said it will reserve 3.5 billion euros ($3.8 billion) for Ukraine aid in 2026.

The U.S. has provided critical intelligence to Ukraine for its fight against Moscow’s forces, including information that helped thwart Russian President Vladimir Putin’s drive to seize Kyiv at the start of his full-scale invasion in February 2022.

But in less than two months in office, Trump has upended U.S. policy, stunning and alienating European allies and raising concerns about the future of the NATO alliance.

He has also ended Putin’s isolation through phone calls with the Russian leader and talks between Russian and U.S. aides in Saudi Arabia and Turkey, from which Ukraine and its European allies were excluded.

Some experts said the U.S. intelligence-sharing suspension would hurt Ukraine’s ability to strike Russian forces, which occupy about 20% of the country’s territory, and defend itself.

“Unfortunately, our dependence in this regard is quite serious,” said Mykola Bielieskov, a research fellow at Ukraine’s National Institute for Strategic Studies. – Reuters

Google reports scale of complaints about AI deepfake terrorism content to Australian regulator

March 6, 2025 | 11:12 am

SYDNEY – Google has informed Australian authorities it received more than 250 complaints globally over nearly a year that its artificial intelligence software was used to make deepfake terrorism material.

The Alphabet-owned tech giant also said it had received dozens of user reports warning that its AI program, Gemini, was being used to create child abuse material, according to the Australian eSafety Commission.

Under Australian law, tech firms must supply the eSafety Commission periodically with information about harm minimization efforts or risk fines. The reporting period covered April 2023 to February 2024.

Since OpenAI’s ChatGPT exploded into the public consciousness in late 2022, regulators around the world have called for better guardrails so AI can’t be used to enable terrorism, fraud, deepfake pornography and other abuse.

The Australian eSafety Commission called Google’s disclosure “world-first insight” into how users may be exploiting the technology to produce harmful and illegal content.

“This underscores how critical it is for companies developing AI products to build in and test the efficacy of safeguards to prevent this type of material from being generated,” eSafety Commissioner Julie Inman Grant said in a statement.

In its report, Google said it received 258 user reports about suspected AI-generated deepfake terrorist or violent extremist content made using Gemini, and another 86 user reports alleging AI-generated child exploitation or abuse material.

It did not say how many of the complaints it verified, according to the regulator.

A Google spokesperson said it did not allow the generation or distribution of content related to facilitating violent extremism or terror, child exploitation or abuse, or other illegal activities.

“We are committed to expanding on our efforts to help keep Australians safe online,” the spokesperson said by email.

“The number of Gemini user reports we provided to eSafety represent the total global volume of user reports, not confirmed policy violations.”

Google used hatch-matching – a system of automatically matching newly-uploaded images with already-known images – to identify and remove child abuse material made with Gemini.

But it did not use the same system to weed out terrorist or violent extremist material generated with Gemini, the regulator added.

The regulator has fined Telegram and Twitter, later renamed X, for what it called shortcomings in their reports. X has lost one appeal about its fine of A$610,500 ($382,000) but plans to appeal again. Telegram also plans to challenge its fine. – Reuters

How much did each commodity group contribute to February inflation?

March 6, 2025 | 12:40 am

HEADLINE INFLATION sharply decelerated in February to its slowest print in five months, preliminary data from the Philippine Statistics Authority (PSA) showed. Read the full story.

Inflation eases sharply in February

March 6, 2025 | 12:40 am

PH-STAR_NOEL-PABALATE_02082025_P35-NFA-Rice_-1 — Inflation sharply eased to 2.1% in February from 2.9% in January and 3.4% a year ago, amid lower prices of rice and utilities. -- Photo by Noel Pabalate, The Philippine Star

By Luisa Maria Jacinta C. Jocson, Reporter

HEADLINE INFLATION sharply decelerated in February to its slowest print in five months, preliminary data from the Philippine Statistics Authority (PSA) showed.

The consumer price index (CPI) eased to 2.1% in February from 2.9% in January and 3.4% a year ago. It was below the 2.2%-3% forecast from the Bangko Sentral ng Pilipinas (BSP).

This was the slowest inflation print in five months or since the 1.9% clip in September 2024.

The February print was also well below the 2.6% median estimate in a BusinessWorld poll of 18 analysts conducted last week.

Inflation averaged 2.5% in the first two months, well within the central bank’s 2-4% target.

Core inflation eased to 2.4% in February from 2.6% in the previous month and 3.6% a year prior. Core inflation discounts volatile prices of food and fuel.

PSA Assistant Secretary Divina Gracia L. Del Prado said the main source of deceleration during the month was the heavily weighted food and nonalcoholic beverage index, accounting for a 58.8% share to the downtrend in inflation.

The index slowed to 2.6% in February from 3.8% in January and 4.6% in the same month in 2024.

Food inflation eased to 2.6% in February from 4% a month ago and 4.8% the year prior.

Cereals and cereal products, which include rice, fell to 3% in February from the 1.1% drop in January.

Rice inflation decreased to 4.9% in February from the 2.3% drop in January. This was the lowest rice inflation print since the 5.7% contraction in April 2020.

In February, the average price of regular milled rice fell to P47.23 per kilo from P50.44 a year earlier. Well-milled rice prices slipped to P53.46 a kilo from P55.93 a year ago, while special rice dropped to P62.65 a kilo from P64.42 a year ago.

“We are seeing the effect of the food security emergency, because we were able to release buffer stocks from the National Food Authority (NFA),” Ms. Del Prado said.

The Agriculture department last month declared a food security emergency on rice, which authorized the NFA to release buffer stocks at subsidized prices. Local government units can buy NFA rice at P33 per kilo and sell it to the public at P35 per kilo.

In mid-February, the department also lowered the maximum suggested retail price (MSRP) of 5% broken imported rice to P52 per kilo from P55 previously. This was further slashed to P49 per kilo, starting March 1.

Ms. Del Prado said rice inflation could remain in the negative for the rest of the year amid continued interventions by the government.

Meanwhile, the inflation of vegetables, tubers, plantains, cooking bananas and pulses decelerated to 7.1% in February from 21.1% a month prior.

Though still elevated, several vegetables posted a slower annual increase in prices. In particular, cabbage slowed to 33.4% in February from 39% in January; okra to 5.5% from 15.3%; and squash to 8.6% from 16.4%.

On the other hand, meat of pigs was the top contributor to February inflation, accounting for 16.2% or 0.3 percentage point to inflation. The inflation of pig meats rose to 12.1% in February from 8.4% in January.

This could be attributed to the rise in African Swine Fever cases, PSA’s Ms. Del Prado said.

For example, the average retail price of fresh pork kasim rose to P352.89 per kilo in February from P337.38 per kilo in the prior month.

The government’s plan to impose an MSRP on pork would help slow down inflation. “Once there is a maximum suggested retail price for pork, it might lead to a deceleration or even a negative inflation for pork,” Ms. Del Prado said.

PSA data showed the housing, water, electricity, gas and other fuels index slowed to 1.6% in February from 2.2% in January.

Electricity inflation dropped to 1% from the 0.2% acceleration a month ago.

This even as Manila Electric Co. (Meralco) raised the overall rate by P0.2834 per kilowatt-hour (kWh) to P12.0262 per kWh in February from P11.7428 per kWh in January.

Inflation of rentals also eased to 1.6% from 2% while liquefied petroleum gas (LPG) prices slowed to 3.7% from 4.7%.

Transport inflation was also a source of slower inflation in February, as it edged lower to 0.2% from the 1.1% rise in January.

In February, pump price adjustments stood at a net decrease of P0.05 a liter for diesel and P0.90 a liter for kerosene. However, gasoline had a net increase of P2.1 a liter.

Meanwhile, inflation for the bottom 30% of income households decelerated to 1.5% in February from 2.4% in January and 4.2% a year ago.

Consumer prices in the National Capital Region (NCR) eased to 2.3% in February from 2.8% in January. Outside NCR, inflation slowed to 2% from 2.9%.

EFFORTS TO TAME PRICES

“This sustained downward trend confirms that our proactive measures to curb inflation are delivering results, especially on helping alleviate the burden on vulnerable sectors,” Finance Secretary Ralph G. Recto said.

National Economic and Development Authority Secretary Arsenio M. Balisacan likewise said the downtrend in inflation shows the government’s efforts are working to tame prices.

“However, we will not be complacent in addressing causes of commodity price increases, particularly for food, to help uplift the lives of poor and vulnerable Filipino families, especially,” he added.

Mr. Balisacan said the government will continue to sustain its efforts to keep inflation manageable.

However, he warned the country may be hit by six to 13 typhoons from March to August.

“The Department of Agriculture (DA) will implement the La Niña action plan to restore agricultural productive capacity in areas likely to be affected by continuous rainfall, flooding, and landslides. The action plan includes water management, financial assistance and credit support, and a massive information campaign on La Niña,” Mr. Balisacan said.

Analysts said inflation is expected to remain within the 2-4% target band for the coming months.

“Barring any unexpected shocks, we project that inflation will remain within the BSP’s 2-4% target, though we remain cognizant of upside risks such as higher electricity prices, transport fare hikes, and potential increases in global commodity prices due to higher tariffs,” Chinabank Research said in a report.

Standard Chartered Bank economist and FX (foreign exchange) analyst Jonathan Koh Tien Wei said lower prices of rice and rent, as well as contained core inflation are helping offset upside risks from higher electricity prices.

“We do not think that today’s lower inflation print necessarily bolsters the case for the BSP to cut earlier in April — the key reason for the pause in February was external uncertainty. Growth and inflation fundamentals already pointed to-wards further easing,” Mr. Koh Tien Wei said.

“If USD-PHP does break below P57 or if the Fed does turn dovish because of weak jobs data, then that may give BSP a window to cut rates in April to provide much needed support to the economy.”

The peso closed at P57.345 per dollar on Wednesday, strengthening by 40.8 centavos from its P57.753 finish on Tuesday. This was the peso’s best finish since its P57.205-per-dollar close on Oct. 11, 2024.

Dino Angelo C. Aquino, vice-president and head of fixed income at Security Bank Corp., said that 75 bps worth of cuts for the year is a “conservative” estimate.

“If you look at pre-pandemic, the spread between the inflation rate and the policy rates is around 150 bps,” Mr. Aquino said in an interview on Money Talks with Cathy Yang on One News on Wednesday.

“So, right now, it’s huge. Say if we average 3% (inflation) conservatively, and your policy rate is at 5.75%. Technically, they have 125 bps room to cut rates. So, 75 for me is a little bit conservative if you ask me.”

The BSP unexpectedly kept rates steady last month after cutting rates for three straight meetings last year.

However, Mr. Remolona has said the central bank is still in easing mode, signaling the possibility of up to 50 bps worth of cuts this year.

The Monetary Board’s next rate-setting meeting is on April 3.

Inflation rates in the Philippines

March 6, 2025 | 12:40 am

HEADLINE INFLATION sharply decelerated in February to its slowest print in five months, preliminary data from the Philippine Statistics Authority (PSA) showed. Read the full story.

Philippine banks’ exposure to real estate sector rises at end-2024

March 6, 2025 | 12:35 am

for-real-estate — BANKS’ real estate exposure ratio jumped to 19.75% as of end-December from 19.55% at end-September, central bank data showed.

THE EXPOSURE of Philippine banks and trust entities to the property sector increased at the end of December amid a rise in residential and commercial real estate loans, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Banks’ real estate exposure ratio rose to 19.75% as of end-December from 19.55% at end-September. However, it was lower than 20.17% in the same period in 2023.

The BSP monitors lenders’ exposure to the real estate industry as part of its mandate to maintain financial stability.

Total investments and loans extended by Philippine banks and trust departments to the real estate sector grew by 5% to P3.31 trillion as of end-December from P3.15 trillion in 2023.

Central bank data showed real estate loans rose by 7.9% year on year to P2.95 trillion at end-December from P2.74 trillion a year ago.

Residential real estate loans climbed by an annual 9.6% to P1.1 trillion, while commercial real estate loans went up by 6.9% to P1.85 trillion.

Past due real estate loans amounted to P140.645 billion, higher by 4% from P135.261 billion a year ago.

Broken down, past due residential real estate loans rose by 4.7% to P99.727 billion, while past due commercial real estate loans edged higher by 2.3% to P40.918 billion.

Meanwhile, gross nonperforming real estate loans inched up by 0.4% to P108.807 billion as of the fourth quarter from P108.389 billion a year ago.

This brought the gross nonperforming real estate loan ratio to 3.68% at end-December, lower than 3.96% a year earlier.

On the other hand, real estate investments declined by 13.8% to P353.809 billion as of end-December from P410.653 billion in the same period a year ago.

Of this, debt securities dropped by 10.5% year on year to P236.881 billion, while equity securities fell by 19.8% to P116.928 billion.

Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said the jump in real estate exposure was due to businesses expanding their operations in the latter part of the year.

“For residential, I would attribute that partly to ready-for-occupancy (RFO) units. We have a lot of RFOs now,” he said via phone call.

“Given there is a lot of supply now, a lot of these RFO promos are getting sweeter, that probably contributed to the increase,” he added.

Buying an RFO unit was much more difficult before the pandemic, Mr. Bondoc said, noting that buyers had to pay 5% to 10% of the total contract price before being able to transfer into the unit.

“Now, there are promos if you are an investor and buyer of RFOs, all you have to do is secure bank loans. Have that approved and you can transfer. You don’t have to pay a hefty downpayment,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the rise in real estate loans is also consistent with faster growth in overall loans “making it cheaper to finance new real property developments.”

The latest BSP data showed bank lending jumped by 12.2% year on year to P13.1 trillion in December, its fastest growth in two years.

Mr. Ricafort said this may be offset by the higher vacancy rates amid the ban on Philippine offshore gaming operators (POGOs).

“Some buyers, however, would be opportunistic and snap up bargains amid higher vacancy rates and increased supply after the POGO exit,” he added.

For the coming months, Mr. Bondoc said he expects increased demand for real estate loans, especially for the residential segment as promos for RFOs are becoming more attractive.

‘We’re likely to see greater purchases of these RFOs. Since these require bank loans also, this will likely result in the exposure of real estate to the banking sector, which will bode well for the property sector in general.”

Mr. Ricafort said further policy rate cuts and reserve requirement ratio (RRR) reductions would also bolster bank lending in general.

Despite surprising markets with a policy pause last month, BSP Governor Eli M. Remolona, Jr. has said the central bank is still in easing mode, signaling the possibility of up to 50 basis points (bps) worth of cuts this year.

Last month the BSP also announced it will cut the RRR of universal and commercial banks and nonbank financial institutions with quasi-banking functions by 200 bps to 5% from 7%, effective March 28.

In 2020, the central bank raised the real estate loan limit of banks to 25% of their total loan portfolio from 20% previously to help free up additional liquidity as a relief measure during the coronavirus pandemic. — Luisa Maria Jacinta C. Jocson

Nickel Asia, DMCI Mining to partner on nickel processing plant in PHL

March 6, 2025 | 12:30 am

NICKEL ASIA Corp. (NAC) and DMCI Mining Corp. on Wednesday said they are studying the feasibility of developing a nickel processing plant in the country.

This comes as the government is considering a ban on raw nickel ore exports to boost domestic processing.

In a joint statement, NAC and DMCI Mining said they signed a memorandum of understanding (MOU) “to explore the feasibility of developing and operating a nickel processing plant in the Philippines.”

Under the MOU, NAC is expected to provide its expertise in nickel processing technology and exploration, while DMCI Mining will contribute new assets and bring its parent company’s experience in construction and engineering.

In the next two to three years, NAC and DMCI Mining will “evaluate suitable technologies, identify an optimal site, and secure a stable ore supply.” However, this will depend on regulatory approvals.

Both companies also agreed to discuss the equity structure of a possible joint venture for the nickel processing plant’s development and operation.

The planned nickel processing plant would process low-grade nickel ore that is currently not viable for export, “maximizing the country’s mineral resources, generating new opportunities and boosting the local nickel industry,” they said.

Despite the current oversupply of nickel, NAC President and Chief Executive Officer Martin Antonio G. Zamora said the future is “bright” as demand is being driven by the electric vehicle and stainless-steel markets.

“Establishing an economically viable nickel processing plant in the Philippines requires several factors to align, including clear government policy directions and regulations, but proactive preparation is crucial. With the significant nickel resources needed and complex logistical challenges to navigate, early planning is essential for long-term success,” Mr. Zamora said.

Tulsi Das C. Reyes, president of DMCI Mining, said the project is “a step toward creating jobs and ensuring the sustainable use of our mineral resources.”

“By laying the groundwork early, we can help position the Philippines as a key player in the global nickel supply chain,” Mr. Reyes said.

Owned by the family of Manuel B. Zamora, NAC is a listed diversified natural resources development firm. Its mines produce saprolite ore, which is used as feed for ferronickel and nickel pig iron smelters in Japan and China, and limonite ore.

DMCI Mining is a wholly owned subsidiary of the Consunji-led listed company DMCI Holdings, Inc. It has assets in Palawan and Zambales and mainly exports nickel ore to China and other markets.

On Wednesday, shares in NAC inched up 0.85% to close at P2.37 a piece, while shares in DMCI Holdings went up by 0.71% to close at P11.30 each.

“The deal is a good signal on the further integration of mining downstream industries, specifically for mineral processing/smelting/refinery, similar to what Indonesia encourages when the latter bans the export of mineral ores,” said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in a Facebook Messenger chat.

“The preparations are in anticipation of the Senate bill’s passage into law.”

Last month, the Senate approved on third reading a bill that includes a provision banning raw mineral exports after five years, to give time for miners to build processing plants.

Congress is expected to approve the bicameral conference committee report when session resumes in June.

AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said the NAC-DMCI Mining deal was interesting, especially with the proposed ban on the export of raw nickel ore.

“It is a bit of an odd move for Nickel Asia, however, especially since they recently just sold their stake in the Coral Bay nickel processing facility due to the losses being incurred,” Mr. Garcia said in a Viber message.

“It would be interesting to see how the two companies would develop a more cost-efficient facility that can profitably operate even if nickel prices remain low,” he added.

Mr. Ricafort said high electricity costs in the Philippines pose risks to the project.

“Capital-intensive nature of investments would realistically take some time to establish,” he added.

Investment analyst Terry L. Ridon said the proposed facility should process both high- and low-grade nickel “to maximize the value potential of our nickel products.”

“In order for the country to corner a more significant slice of the EV battery supply chain, the main focus of any local nickel processing plant should be the processing of high-grade nickel ore,” he said via Messenger chat. — Kyle Aristophere T. Atienza

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