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Gilas Pilipinas women prove that they belong with Asia’s best in 2023 FIBA Women’s Asia Cup

REUTERS

THERE is no way to go but up for Gilas Pilipinas women after proving that they belong in the same atmosphere with Asia’s best.

Gilas showed improvement by leaps and bounds in the 2023 FIBA Women’s Asia Cup with a commendable sixth-place finish, paving the runway for its takeoff to newer heights sooner than later.

“I think the gaps are closing for us. And I hope we continue doing this in the future or when we go back,” said coach Pat Aquino as Gilas, including players and coaching staff, made the most out of its first-time experience in Australia.

“We came here to compete and not just to play the relegation games.”

And Gilas did.

Ranged against the Asia’s basketball giants in Sydney, the Filipinas stumbled early but picked up themselves and turned to fiercer warriors with gallant fights after one another in the tournament.

Gilas bowed to Australia, 105-34, and Japan, 95-57, in blowout fashions but learned its lessons right away by stunning Chinese Taipei, 92-81, to end its group phase campaign in style and punch a breakthrough playoff ticket.

The historic win dragged Gilas out of the relegation match for only the first time since its Division A promotion in 2015. From there, Gilas barely missed the Final Four with an 83-78 loss against New Zealand before falling short anew versus South Korea, 80-71, in the battle for fifth.

At sixth, Gilas thus claimed its best finish in a long while since placing fourth in the 1984 Asian championships.

“I hope this spark would create a burning fire in the coming years. We just have to keep pushing.  Four of the teams here played in the Olympics and the World Cup. I think it’s about time for us to  belong with the best,” Mr. Aquino beamed. — John Bryan Ulanday

PBA 3×3 Season 3 kicks off; TNT has no intention of slowing down

ASIA TOUR 3X3 /PHILSTAR FILE PHOTO

THE TNT Triple Giga approach Season 3 of the PBA 3×3 with the same always-hungry, not-resting-on-your-laurels mentality that has served them well in past battles.

The Triple Giga have blazed a trail of excellence in the three-a-side league, scoring a historic grand slam in Season 2 after first reigning supreme in the Third Conference of the inaugural season.

And they have no intention of slowing down.

“We take every opportunity as a chance to be better, whether it’s another game we play or a whole new season,” TNT coach Mau Belen told The STAR on the eve of today’s Season 3 First Conference Leg 1 hostilities kickoff at the Ayala Malls Manila Bay.

“We are staying grounded knowing not all lessons are learned as long as we play the sport,” she added.

The seasoned crew of Almond Vosotros, Lervin Flores, Ping Exciminiano and Gryann Mendoza carry the fight for multi-titled TNT in the season opener featuring 11 teams.

Mr. Vosotros and Co. duke it out with No. 6 Pioneer Elastoseal Katibays and No. 7 Blackwater Smooth Razor in Pool A.

Meanwhile, second seed Cavitex, which added 3×3 vet Tonino Gonzaga and Kenneth Ighalo to its solid core of Dominick Fajardo and Jorey Napoles, headlines Pool B with No. 5 San Miguel Beer, No. 8 Purefoods and debuting guest team Wilcon Depot as opposition.

No. 3 Meralco, which brings back Joseph Sedurifa to partner with Alfred Batino, Jeff Manday and Bryan Santos, vies in Pool C versus No. 4 Barangay Ginebra, No. 9 NorthPort and No. 10 Terrafirma.

Action starts at 10:30 a.m. with combatants aiming to finish in Top 2 of Pool A and Top 3 of Pools B and C to advance to the KO rounds set for tomorrow. — Olmin Leyba

NBA transaction roundup: Miami Heat land Josh Richardson, sign Kevin Love

ONCE the NBA’s free agency negotiation period began Friday, plenty of reported deals — including Kyrie Irving staying with the Dallas Mavericks and Draymond Green remaining with the Golden State Warriors — made the headlines, but there were several other moves worth noting.

The contract agreements with free agents become official July 6, per NBA free agency rules. Here’s a look at several deals that were reportedly agreed to on Friday:

• The Miami Heat re-signed forward Kevin Love and added guard Jason Richardson, according to ESPN. The Athletic also reported that the Heat were set to trade Victor Oladipo to the Oklahoma City Thunder.

Mr. Oladipo, 31, spent 2 1/2 seasons in Miami. He previously played for Oklahoma City in 2016-17.

• Joe Ingles landed a deal with the Orlando Magic.

A key contributor off the bench for the Milwaukee Bucks last season, the 35-year-old forward is getting a two-year, $22-million contract with the Orlando Magic, per ESPN.

• Former MVP Derrick Rose is set to join the Memphis Grizzlies. The 34-year-old guard was a bit-part player for the New York Knicks last season.

• Forward Herb Jones is sticking with the Pelicans. Mr. Jones, 24, had declined his option on a minimum salary, opting instead to agree on a four-year, $54-million deal to stay with New Orleans, per an ESPN report.

• Veteran guard Dennis Schroeder is joining the Raptors. After losing star guard Fred Van Vleet to the Houston Rockets, Toronto landed Mr. Schroeder, 29, with a two-year deal worth a reported $26 million.

• Reggie Jackson, 33, and DeAndre Jordan, 34, will stay with the reigning with Denver Nuggets. Jackson’s deal is reportedly for two years and $10.25 million. — Reuters

Lakers lineup

Heading into free agency, general manager Rob Pelinka made no secret of the Lakers’ plan for success: Fortify the gains they made at the end of the National Basketball Association’s 2022-23 season. After a roster makeover at the trade deadline, they scrambled to get a slot in the play-in tournament, and then built momentum for a playoff run all the way to the conference finals. Which is to say he intended to run it back and re-sign players who proved integral to their stunning turnaround, plus a handful seen to be a good cultural fit. Clearly, he meant to avoid any splashy acquisition that tied their resources to a big name, only to be hobbled by it. The scars from their failed Russell Westbrook experience remained fresh enough for him to remember the lessons he learned.

Over the weekend, Pelinka did just that. He wasted no time completing a lineup that complemented the strengths of resident stars LeBron James and Anthony Davis, and, just as importantly, featured the return of vital cogs Austin Reaves, D’Angelo Russell, Rui Hachimura, and Jarred Vanderbilt — all on friendly terms. Joining the Lakers are Taurean Prince, Gabe Vincent, Cam Reddish, and Jaxson Hayes, exactly the types they angled for in view of both head coach Darvin Ham’s defense-first mindset and the need to spread the offense with excellent outside shooting and paint scoring.

Remarkably, all of Pelinka’s wheeling and dealing did not bring the Lakers to luxury tax territory. In fact, they have around $1.3 million left over to sign a 14th man before being subject to salary cap penalties. Needless to say, the additions were enjoined to take less than market value for the prospect of suiting up in purple and gold and, yes, sharing the court with James and Davis. The league’s biggest crossover personality may be turning 39 and well past his prime, but he still has unparalleled clout; players keep wanting to be around him, the increased scrutiny notwithstanding.

Make no mistake: The Nuggets are still the best in the West; there can be no doubting their claim to the throne, with two-time Most Valuable Player awardee Nikola Jokic and perennially underrated Jamal Murray leading the way. That said, the Lakers are right behind them, fueled by immediate past accomplishments and a series of moves designed for further progress. James was certainly pleased with the developments, and with reason. At his age, he knows it’s the title or bust, and he now has cause to believe he’s closer to his ultimate objective.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Sporadic violence continues in France as slain teenager is buried

A PERSON reacts while a police officer holds a baton during protests following the death of Nahel, a 17-year-old teenager killed by a French police officer in Nanterre during a traffic stop, in Paris, France, July 2, 2023. — REUTERS/NACHO DOCE

PARIS — Rioting across France appeared to be less intense on Saturday, as tens of thousands of police had been deployed in cities across the country after the funeral of a teenager of North African descent, whose shooting by police sparked nationwide unrest.

President Emmanuel Macron postponed a state visit to Germany that was due to begin on Sunday to handle the worst crisis for his leadership since the “Yellow Vest” protests paralyzed much of France in late 2018.

Some 45,000 police were on the streets with specialized elite units, armored vehicles and helicopters brought in to reinforce its three largest cities, Paris, Lyon and Marseille.

At 0145 (2345 GMT) Sunday morning, the situation was calmer than the previous four nights, although there was some tension in central Paris and sporadic clashes in the Mediterranean cities of Marseille, Nice and the eastern city of Strasbourg.

The biggest flashpoint was in Marseille where police fired tear gas and fought street battles with youths around the city center late into the night.

In Paris, police increased security at the city’s landmark Champs Elysees avenue after a call on social media to gather there. The street, usually packed with tourists, was lined with security forces carrying out spot checks. Shop facades were boarded up to prevent potential damage and pillaging.

The interior ministry said 1,311 people had been arrested on Friday night, compared with 875 the previous night, although it described the violence as “lower in intensity.” Police said almost 200 people had been arrested nationwide on Saturday.

Local authorities all over the country announced bans on demonstrations, ordered public transport to stop running in the evening and some imposed overnight curfews.

The unrest, a blow to France’s global image just a year from holding the Olympic Games, will add political pressure on Mr. Macron.

He had already faced months of anger and sometimes violent demonstrations across the country after pushing through a pension overhaul.

Postponement of the state visit to Germany is the second time this year he has had to cancel a high-level event because of the domestic situation in France. In March, he canceled King Charles’ planned state visit.

FUNERAL OF TEENAGER
Nahel, a 17-year-old of Algerian and Moroccan parents, was shot by a police officer during a traffic stop on Tuesday in the Paris suburb of Nanterre.

For the funeral, several hundred people lined up to enter Nanterre’s grand mosque. Volunteers in yellow vests stood guard, while a few dozen bystanders watched from across the street.

Some of the mourners, their arms crossed, said “God is Greatest” in Arabic, as they spanned the boulevard in prayer.

Marie, 60, said she had lived in Nanterre for 50 years and there had always been problems with the police.

“This absolutely needs to stop. The government is completely disconnected from our reality,” she said.

The shooting of the teenager, caught on video, has reignited longstanding complaints by poor and racially mixed urban communities of police violence and racism.

Nahel was known to police for previously failing to comply with traffic stop orders and was illegally driving a rental car, the Nanterre prosecutor said on Thursday.

Mr. Macron has denied there is systemic racism in French law enforcement agencies.

There is also a broader anger in the country’s poorest suburbs, where inequalities and crime are rife and French leaders have failed for decades to tackle what some politicians have called a “geographical, social and ethnic apartheid.”

SHOPS RANSACKED
Rioters have torched 2,000 vehicles since the start of the unrest. More than 200 police officers have been injured, Interior Minister Gerald Darmanin said on Saturday, adding that the average age of those arrested was 17.

Justice Minister Eric Dupont-Moretti said 30% of detainees were under 18.

More than 700 shops, supermarkets, restaurants and bank branches had been “ransacked, looted and sometimes even burnt to the ground since Tuesday,” Finance Minister Bruno Le Maire said.

In Marseille, where 80 people had been arrested on Friday, police said they had detained 60 people.

“It’s very scary. We can hear a helicopter and are just not going out because it’s very worrying,” said Tatiana, 79, a pensioner who lives in the city center.

In Lyon, France’s third largest city, police deployed armored personnel carriers and a helicopter.

The unrest has revived memories of nationwide riots in 2005 that lasted three weeks and forced then President Jacques Chirac to declare a state of emergency, after the death of two young men electrocuted in a power substation as they hid from police.

Players from the national soccer team issued a rare statement calling for calm. “Violence must stop to leave way for mourning, dialogue and reconstruction,” they said on star Kylian Mbappe’s Instagram account.

The South Winners supporters’ group, an influential fan group for Olympique de Marseille, called on the city’s youth to “be wise and show restraint.”

“By acting in this way, you are dirtying Nahel’s memory and are also dividing our city.”

Events including two concerts at the Stade de France on the outskirts of Paris were canceled, while LVMH-owned fashion house Celine canceled its 2024 menswear show on Sunday, creative director Hedi Slimane said on Instagram.

With the government urging social media companies to remove inflammatory material, Darmanin met officials from Meta, Twitter, Snapchat and TikTok. Snapchat said it had zero tolerance for content that promoted violence.

The policeman whom prosecutors say acknowledged firing a lethal shot at Nahel is in preventive custody under formal investigation for voluntary homicide, equivalent to being charged under Anglo-Saxon jurisdictions.

His lawyer, Laurent-Franck Lienard, said his client had aimed at the driver’s leg but was bumped when the car took off, causing him to shoot towards his chest. “Obviously (the officer) didn’t want to kill the driver,” Mr. Lienard said on BFM TV. — Reuters

Elon Musk says Twitter will limit how many tweets users can read

THE TWITTER LOGO is displayed on a screen on the floor of the New York Stock Exchange in New York City, US, Sept. 28, 2016. — REUTERS

TWITTER is limiting how many tweets per day various accounts can read, to discourage “extreme levels” of data scraping and system manipulation, Executive Chair Elon Musk said in a post on the social media platform on Saturday.

Verified accounts were initially limited to reading 6,000 posts a day, Mr. Musk said, adding that unverified accounts will be limited to 600 posts a day with new unverified accounts limited to 300.

The temporary reading limitation was later increased to 10,000 posts per day for verified users, 1,000 posts per day for unverified and 500 posts per day for new unverified users, Mr. Musk said in a separate post without providing further details.

Previously, Twitter had announced it will require users to have an account on the social media platform to view tweets, a move that Mr. Musk on Friday called a “temporary emergency measure.”

Musk had said that hundreds of organizations or more were scraping Twitter data “extremely aggressively,” impacting user experience.

Mr. Musk had earlier expressed displeasure with artificial intelligence (AI) firms like OpenAI, the owner of ChatGPT, for using Twitter’s data to train their large language models.

Twitter was down for thousands of users on Saturday morning, according to outage tracking website Downdetector.com.

Nearly 7,500 users across the social media platform reported issues with accessing the app during the peak of the outage at around 11:17 AM ET.

The social media platform had previously taken a number of steps to win back advertisers who left Twitter under Mr. Musk’s ownership and to boost subscription revenue by making verification check marks a part of the Twitter Blue program. Reuters

Europe’s Euclid space telescope launched on mission to explore ‘dark universe’

PHOTOLIBRARY.ESA.INT
PHOTOLIBRARY.ESA.INT

A EUROPEAN-BUILT orbital satellite was launched to space on Saturday from Florida on a mission to shed new light on the mysterious cosmic phenomena known as dark energy and dark matter, unseen forces scientists say account for 95% of the known universe.

The telescope dubbed Euclid, named for the ancient Greek mathematician called the “father of geometry,” was carried aloft in the cargo bay of a SpaceX Falcon 9 rocket that blasted off around 11 a.m. EDT (1500 GMT) from Cape Canaveral Space Force Station.

A livestream of the liftoff was shown on NASA TV.

New insights from the $1.4 billion European Space Agency (ESA) mission, designed to last at least six years, are expected to transform astrophysics and perhaps understanding of the very nature of gravity itself.

Following a short flight to space, Euclid was to be released from the Falcon for a month-long voyage to its destination in solar orbit nearly 1 million miles (1.6 million km) from Earth — a position of gravitational stability between the Earth and sun called the Lagrange Point Two, or L2.

From there, Euclid is designed to explore the evolution of what astrophysicists refer to as the “dark universe,” using a wide-angle telescope to survey galaxies as far away as 10 billion light years from Earth across an immense expanse of the sky beyond our own Milky Way galaxy.

The 2-ton spacecraft is also equipped with instruments designed to measure the intensity and spectrums of infrared light from those galaxies in a way that will precisely determine their distances.

The mission focuses on two foundational components of the dark universe. One is dark matter, the invisible but theoretically influential cosmic scaffolding thought to give shape and texture to the cosmos. The other is dark energy, an equally enigmatic force believed to explain why expansion of the universe, as scientists learned in the 1990s, has long been accelerating.

The possibilities of the mission are reflected by the enormity of Euclid’s inquiry. Scientists estimate dark energy and dark matter together make up 95% of the cosmos, while ordinary matter that we can see accounts for just 5%.

EUROPEAN-LED MISSION
Euclid was designed and built entirely by ESA, with the US space agency, NASA, supplying photo detectors for its near-infrared instrument. The Euclid Consortium overall comprises more than 2,000 scientists from 13 European nations, the US, Canada and Japan.

A decade in the making, the mission originally was to have flown to space by way of a Russian Soyuz rocket. But launch plans were switched to SpaceX, the California-based venture of Elon Musk, after war erupted in Ukraine, and because no slot was immediately available from Europe’s Arianne rocket program.

While the James Webb Space Telescope launched by NASA late last year allows astronomers to zero in on particular objects from the early universe with unprecedented clarity, Euclid is intended to expose the hidden fabric and mechanics of the cosmos by meticulously charting an enormous swath of the observable universe in 3-D, more than 1 billion galaxies in all.

Dark matter and dark energy cannot be detected directly, but their properties “are encoded in the shapes and positions of the galaxies,” said astrophysicist Jason Rhodes, lead scientist for Euclid at NASA’s Jet Propulsion Laboratory near Los Angeles.

“Measuring the shapes and positions of galaxies allows us to infer the properties of dark matter and dark energy,” Rhodes said on Friday.

The data will be collected as Euclid maps the last 10 billion years of cosmic history across a third of the sky, gazing outward, and thus back in time, to an era of the universe astronomers call “cosmic noon,” when most stars were forming.

Observing subtle but distinct changes in the shapes and positions of galaxies over vast spans of time and space will reveal fine variations in cosmic acceleration, indirectly exposing the forces of dark energy, scientists say.

Euclid also will help reveal the nature of dark matter by measuring an effect called gravitational lensing, which produces faint distortions in galaxies’ visible shapes and is attributed to the presence of unseen material warping the fabric of space around it.

Through insights into dark energy and matter, scientists hope to better grasp the formation and distribution of galaxies across the so-called cosmic web of the universe.

Beyond Euclid’s primary objectives, it will provide “a gold mine for all fields of astronomy for several decades,” said Yannick Mellier, Euclid Consortium lead and astronomer at the Institut d’Astrophysique de Paris.Reuters

South Korea LGBT festival proceeds, bumped from prime spot by Christian group

STOCK PHOTO | Image by Chandlervid85 from Freepik

SEOUL — Tens of thousands attended South Korea’s largest annual LGBT festival on Saturday, vowing to continue fighting for gay rights after the Seoul city government denied them a prime spot and gave it to an anti-LGBT Christian group.

The Seoul Queer Culture Festival, staged outside city hall in the nation’s capital annually since 2015, except for two years during COVID-19, was instead held nearby after the city government in May gave the permit for a Christian youth concert to be held at the prime spot.

“You can see a lot of hateful banners behind me as well as those that support us on our right,” said Yang Sun-woo, chief organiser of the Seoul Queer Culture Festival.

“South Korea is enjoying a rise in global status but LGBT rights here are at rock bottom,” she said.

This year’s march began hundreds of metres from city hall, surrounded by onlookers and anti-LGBT protesters.

The Christian group CTS, which has vocally opposed homosexuality, said it was not trying to thwart LGBT people.

“That we aimed to block homosexuality, as some say, is not true, and this (youth) event was to give courage and hope to young people in this tough time,” said Cho Jong Yun, managing director at CTS.

The city government did not respond to a request for comment when it issued the permit.

The LGBT event’s organisers estimated some 35,000 people joined the march.

Four in 10 South Koreans support legalizing same-sex marriage, according to a Gallup poll in May, supporters have been narrowing the gap with those who disapprove in recent years.

Kim Kyu Jin and Kim Saeyeon, a lesbian couple who married abroad and recently announced a pregnancy, one the first openly LGBT South Korean couples to do so, joined Saturday’s march.

“When we announced our marriage, many friends and queer people around us thanked us for letting them know that there is a way for them to get married too,” said Kyu Jin Kim.

Nicole Kim, a 23-year-old who identifies as asexual, said the Pride event was a rare opportunity for queer people to celebrate themselves in South Korea.

“Some ask why we need this queer festival, but it is the only time a year where we can all enjoy ourselves out in the open.”

Last month, police officers were dispatched at a smaller Pride parade in the southern city of Daegu despite Mayor Hong Joon-pyo calling the event illegal. — Reuters

E-wallet phishing scams seen getting more sophisticated

STOCK PHOTO | Image by David Dvořáček from Unsplash

Users of e-wallet platforms and online payment channels need to watch out for phishing scams that are getting more complicated, according to an electronic payment firm.

While e-wallet companies claim to double security measures through new features, they still expect users to be aware of the inventive breaches fraudsters use to obtain their personal information.

“Cybercriminals will continuously find ways to become more creative with their tactics and remain unsuspicious and realistic,” mobile payment service GCash said in a statement on Thursday.

“Even if you might think you are not worthy of being the target of online predators, being a technology user will always put you as a potential target of any attack,” it added.

“Doing your part to protect your e-wallet account only takes a simple action: Do not ever share your MPIN [mobile banking identification number] and OTP [one-time pin].”

On May 8, GCash customers reported unauthorized deductions from their digital wallets. After it received user complaints, GCash announced that any deduction from an account would be adjusted.

According to the National Privacy Commission, a meticulous phishing scheme through online gambling websites was to blame for these.

The TransUnion report said that about 71% of Filipinos surveyed in the fourth quarter of last year said that they had been targeted by digital fraud attempts across various communication channels. Among all those surveyed, 11% fell victim to such attempts during the same period.

Phishing and smishing (both at 46%) were the most commonly reported fraud schemes experienced by Filipino consumers, followed by third-party seller scams (33%) and identity theft (25%).

EMERGING SCAMS

GCash has identified rampant phishing scams, its key characteristics, and pertinent reminders the public should be aware of.

Scammers have started disguising themselves as online gambling sites asking people to ‘top-up’ their credits using a fake yet believable e-wallet portal, getting the user’s credentials and accessing their account.

These suspicious gaming providers are not licensed by the Philippine Amusement and Gaming Corporation or PAGCOR.

Users are transported into a portal with a series of numbers in the beginning, misspelled words, and extra characters.

Users are advised to always check the URL or name of the link to make sure they are in a legitimate portal. These usually start with https:// and end in the official website address of the provider.

Another phishing scam involves scammers pretending to hail from legitimate financial institutions and making up negative consequences to encourage users to immediately give their sensitive information.

The scammer will hurriedly contact the user via phone call or message claiming to be an employee of the financial institution, informing them that their account is on hold or frozen until they release personal details.

E-wallet services will never ask you to activate your account through any other channel than their own.

Moreover, scammers have also started sending out text messages and emails with a seemingly legitimate link to gain the user’s credentials and access to their account.

These are being done in the form of ‘cashback’ or ‘raffle prizes’ where the user is invited to divulge their information to claim their ‘reward.’

“Any communication from an unexpected or unfamiliar sender with an offer that’s too good to be true is usually a phishing scam,” GCash said.

Any fraudulent activities targeting the user’s e-wallet account must be reported to the official help center of the service provider. — Miguel Hanz L. Antivola

Love Ko All: McDonald’s Philippines colors its iconic arches at its McKinley West store

In celebration of diversity and inclusivity, McDonald’s Philippines turns its Golden Arches into rainbow arches at its McKinley West store in Taguig. Working towards becoming a more inclusive and welcoming place, the QSR giant welcomes all customers and employees as they are.

A Colorful Day with McDonald’s

Over the weekend, McDonald’s Philippines sponsored Pride March 2023 at Quezon Memorial Circle and Circuit Makati. In both legs, McDonald’s hosted a fun booth, carrying its mission of bringing feel-good moments to everyone with exciting treats.

At the McDonald’s booth, Pride March attendees unleashed their competitive spirits in the Baka Matunaw staring contest. Positioned under a Rainbow McDonald’s arch, participants engaged in an intense staring challenge where the first person to blink loses and the winner receives limited edition McDonald’s Love Ko All pins. To add a kilig factor, after every 10 seconds, the participants were asked to move closer to each other, making the game even sweeter!

Becoming Everyone’s Happy Place

McDonald’s Philippines also takes pride in being an equal opportunity employer, dedicated to championing inclusivity and diversity at its core. Guided by this mission, the company  has introduced internal efforts such as the use of gender-inclusive e-mail signatures for employees’ optional use and holding regular Pride Webinars about SOGIESC to promote gender inclusivity all year round.

Photo of the limited edition McDonald’s pins as prizes for the Baka Matunaw staring content

In addition, earlier this month, the QSR giant took the internet by storm through its feel-good film featuring a female skater who circles McDonald’s Ride-Thru for a heart-fluttering reason that made many Filipinos feel kilig. 

McDonald’s Philippines President and CEO, Kenneth S. Yang says, “We are staying true to our commitment to foster a feel-good, inclusive and welcoming environment for all our customers and employees. It is a continuous journey, and we recognize that there are more opportunities to make everyone feel accepted and celebrated, not just during a particular month, but every day of the year in every McDonald’s store.”

 


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Philippine bond dynamics poised for shakeup due to policy pivot

BW FILE PHOTO

Shorter-maturity Philippine bonds look increasingly favorable relative to longer-dated ones, aided by the central bank’s pivot to an easing stance, which will also boost lending in the economy.

Emerging Asia’s formerly most hawkish central bank sent the two-to-10-year curve into inversion in May for the first time since June 2019. Yields have stayed around those levels since. But Bangko Sentral ng Pilipinas’s decision to cut the reserve requirement ratio — by 250 basis points versus an expected 200 basis points — should ease pressure on shorter yields, which will help the sovereign curve steepen.

“The reserve requirement ratio cut increases demand for short-term government securities” as institutions would optimize returns on excess peso funds effectively infused into the financial system, said Michael Ricafort, chief economist at Rizal Commercial Banking Corp. in Manila.

The spread between two- and 10-year bonds dipped below zero in May, following a cumulative 425 basis points of rate hikes from the BSP since 2022. That was the largest tightening cycle among emerging Asia economies as the central bank sought to tame surging price pressures. But inflation is now slowing, with the consumer-price index dropping to 6.1% in May from a 15-year high of 8.7% in January. June inflation figures are due Wednesday, and are expected to decelerate further to 5.5%, according to economist estimates.

Philippine authorities signaled the central bank would consider cutting rates in the first quarter of 2024, or if inflation comes in below 4% for two months. Rate cuts are expected to begin in that period, according to the median estimate of economists surveyed by Bloomberg. Some money managers though speculate easing may begin as early as the fourth quarter as gross domestic product may undershoot government estimates of above 6% growth.

Among the core Asia markets, the Philippines has “led the way in monetary easing, after having delivered the most aggressive tightening in the region,” HSBC strategists Pin Ru Tan and Himanshu Malik wrote in a note last week.

Shorter-maturity yields, which are more sensitive to rate expectations, may move in advance of the actual rate cut if history is a guide. Peso two-year yields started declining around five months ahead of eventual rate cuts in May 2016 and May 2019, as shorter yields fell by around 100 basis points on both occasions before the rate cut. Declining two-year yields would support a steepening in the sovereign yield curve.

“We expect the bond curve to steepen” as the RRR cut adds net liquidity into the system, the HSBC strategists said. — Bloomberg

Marcos faces Philippine growth, investment tests in second year

President Ferdinand R. Marcos, Jr. answers questions from the media after his first Cabinet meeting at the Heroes Hall of the Malacañan Palace, July 5. — PHILIPPINE STAR/KRIZ JOHN ROSALES

Philippine President Ferdinand Marcos Jr. marks his first year in office with resilient growth and improving business sentiment as he rebalanced the country’s foreign policy and tapped credible economic managers.

As his administration enters its second year and faces prospects of softening demand amid elevated inflation, Mr. Marcos said delivering on his campaign promises to transform the economy is a work in progress.

“We have to bear in mind that the international situation has changed in terms of trade, in terms of geopolitics so we are having to adjust with that,” he told reporters Thursday. “The most successful economies are those that are agile and resilient and I think we have put in place the basic elements for us to do that.”

Mr. Marcos, who retains a high approval rating, must use his political capital to spur investment and create jobs, boost supplies and help cool prices and interest rates, said Fritz Ocampo, who helps manage about $34 billion as chief investment officer at BDO Unibank Inc., the country’s largest.

“All the doomsday scenarios didn’t happen,” Mr. Ocampo said of the skepticism that followed the landslide win of Marcos Jr, the 65-year-old son of the late Philippine dictator Ferdinand Sr. who ruled for two decades.

Here are key things to watch in the Philippines in the coming year:

ECONOMIC GROWTH

While the Philippines outperformed many of its neighbors last quarter, it remains to be seen whether it can sustain robust expansion amid a limping global economy. Consumption, which is a key growth driver, had moderated in the face of 16-year-high borrowing costs and lingering price pressures.

“We see that pent-up demand is waning, but this means that we are going to moderation that’s also good for inflation,” said Undersecretary Rosemarie Edillon of the economic planning agency.

FOOD SECURITY

Marcos appointed himself as secretary of agriculture, aiming for self-sufficiency in food production like many of his predecessors. His single six-year term was greeted by shortages of food items like onions and sugar, helping stoke inflation to the fastest in 14 years at the start of 2023.

While supply issues have eased, threats to food security remain, including the potential impact of the El Nino weather pattern and African swine fever. Rice prices have been on an uptrend, putting into question Mr. Marcos’s campaign promise to bring down the costs of the staple grain.

For Ateneo de Manila University economics professor Leonardo Lanzona, the government needs to address logistical issues in agriculture and ensure reforms are benefiting farmers. “Certainly, we need somebody who knows more about the agriculture sector, particularly the problem of distribution.”

FISCAL SPACE

The Philippines’ fiscal space remains tight, even as the budget deficit has narrowed after hitting a record in 2021. As the government plans a 9 trillion-peso ($162.7 billion) infrastructure program, the issue of funding arises.

“There is urgency for fiscal reform measures to further boost revenue through new or higher taxes, intensified collections as well as more disciplined government spending,” said Rizal Commercial Banking Corp. chief economist Michael Ricafort.

Still, Mr. Marcos’s market-friendly policies helped boost local stocks in his first year in office, with the key index gaining more than 5% since June 2022, far outpacing the market’s performance in the first year of former President Rodrigo Duterte.

The economic team is pushing for taxes on junk foods, plastics and digital services. The government is also trying to woo private companies to help build airports, railways and other key infrastructure as it seeks to ease fiscal burden and bring the budget shortfall to 3% of economic output by the end of Marcos’s term in 2028 from around 7% last year.

INVESTMENTS

Mr. Marcos has made 13 foreign trips since he took power a year ago, securing a total 3.48 trillion pesos in investment pledges from his official visits, his office said in February. Of that amount, 239 billion pesos have materialized in various stages of implementation.

While more sectors including renewables have been opened up to overseas investors, more needs to be done to enable the Philippines to catch up with its neighbors. Net foreign direct investments fell 19.6% year-on-year in the first quarter to $2 billion after dropping more than 23% in the full year of 2022.

“There’s a global movement right now where everyone’s moving their supply chain, and the Philippines is right smack at the center of where the trend is going,” said HSBC Holdings Plc Asean economist Aris Dacanay. “You need to be able to build upon that trend.” — Bloomberg

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