Macron’s aim of EU unity on China undone by trip fallout

April 12, 2023 | 4:48 pm

Emmanuel Macron — FRENCH PRESIDENT EMMANUEL MACRON — REUTERS

PARIS — French officials were in damage control mode on Tuesday as they tried to contain anger, division and confusion sparked by President Emmanuel Macron’s comments on Europe’s dependence on the United States and its relations with China and Taiwan.

Mr. Macron’s comments came in an interview on a trip to China that was meant to showcase European unity on China policy, with European Commission President Ursula von der Leyen also taking part, but highlighted differences within the European Union (EU).

In the interview with French daily Les Echos and news portal Politico published on Sunday, Mr. Macron called for the EU to reduce its dependence on the US and to become a “third pole” in world affairs alongside Washington and Beijing.

As European politicians and diplomats returned to work after the long Easter holiday weekend, they were still struggling to digest Macron’s comments, in which he also cautioned against being drawn into a crisis over Taiwan driven by an “American rhythm and a Chinese overreaction”.

While many of the remarks were not new, the timing of their publication — at the end of a high-profile trip to China, as Beijing carried out military exercises near Taiwan — and their bluntness annoyed countries in eastern Europe.

Many governments in that region see ties with the United States as sacrosanct, particularly given Washington’s key role in helping Ukraine defend against Russia’s invasion.

“The return of geopolitics means that we have to see more clearly who is our ally and who is not. Strong transatlantic relations between Europe and the US are the foundation of our security,” Czech Foreign Minister Jan Lipavsky told Reuters.

“Europe must invest more in its own security, but I do not see that as an obstacle or a limit for cooperation with the USA,” he said via a spokesman.

A senior diplomat from Central and Eastern Europe, speaking on condition of anonymity, said: “President Macron is not speaking for Europe or the European Union. He is unwittingly helping Beijing to dismantle transatlantic unity at the time of war in Europe, when it is most needed.”

Marcin Przydacz, a foreign policy adviser to Polish President Andrzej Duda, made clear Warsaw was not in favor of any shift away from Washington.

“We believe that more America is needed in Europe,” he told Polish broadcaster Radio Zet. He added pointedly: “Today the United States is more of a guarantee of safety in Europe than France.”

Such criticism prompted French officials and diplomats to stress that Mr. Macron did not suggest Europe should be equidistant geopolitically from Washington and Beijing, simply that Europe’s interests will sometimes differ from those of the United States.

The French foreign ministry canceled a planned debrief on the trip for foreign diplomats in Paris on Tuesday as officials scrambled to make sure they had a consistent message and to limit any fallout with Washington.

The initial response from Washington was measured. Without directly addressing Macron’s comments, the US State Department spokesperson and the White House lauded the bilateral relationship with Paris and its role in the Indo-Pacific region and Ukraine. But there was broader unease.

If Europe doesn’t “pick sides between the US and China over Taiwan, then maybe we shouldn’t be picking sides either [on Ukraine],” US Republican Senator Marco Rubio said in a video drawing parallels with the conflict in Ukraine.

SYMPATHY AND FRUSTRATION
Even some of the president’s closest allies in France recognized Mr. Macron had misspoke. “There’s a problem with the president’s communication. It’s a disaster,” one Macron ally said on condition of anonymity, saying the timing and location of what he said, although right on substance, were problematic.

“The idea now is to reassure the Americans and tell them there is nothing new and that on Taiwan we have the same position as before,” said a senior French diplomat.

“The difficulty I think will ultimately not be with the Americans. I think it will be more complicated with the Europeans, notably the Baltics, Nordics, Eastern Europeans.”

Other governments in Europe, however, are at least more sympathetic to Macron’s push for “strategic autonomy” — making Europe less dependent on others when it comes to defence, technology and supplies of critical raw materials.

Countries such as Germany, Italy and Spain have also backed strong EU engagement with China, even as Washington takes a harder line with what it sees as an increasingly belligerent Beijing.

“I think we cannot just turn our back to China and try to ignore it. It is a key trading partner, a very large player,” Spanish Economy Minister Nadia Calvino said in discussion hosted by the Brookings Institution think tank in Washington.

“We have a shared interest, I think, in ensuring that they engage constructively to put an end to the war in Ukraine as soon as possible and to avoid global market fragmentation, which is going to be lose-lose for everyone.”

But even some of those broadly supportive of Mr. Macron’s agenda lamented the handling of the China trip, in which Ms. Von der Leyen received a much more muted welcome than the French president.

Nils Schmid, a foreign policy expert and member of parliament for German Chancellor Olaf Scholz’s Social Democrats, said both Mr. Scholz and Mr. Macron had long favoured the idea of “European sovereignty”.

But, he added: “The problematic thing about Mr. Macron’s visit is that he deliberately pulled out the European card and took … von der Leyen with him. But then he allowed her to be put in the second row. This has destroyed the hoped-for impetus for a common European policy on China.”

He added: “China is playing the card of dividing Europe. We must prevent that.” — Reuters

Australia tells exporters to diversify from top trade partner China

April 12, 2023 | 4:47 pm

SYDNEY — Australia wants exporters to diversify markets and become less reliant on China, because it cannot separate economic and strategic relationships, Foreign Minister Penny Wong said a day after the trade partners unveiled a path to ending a dispute.

Both nations have reached consensus to end their dispute over barley, they said on Tuesday, with Australia suspending a case at the World Trade Organization, while China hastens a review of tariffs on Australian exports.

“Making sure we do diversify our export markets is an important part of our national resilience,” Ms. Wong told Sky News in a television interview on Wednesday.

“And the government will continue to encourage that because we want to make sure we have diversified export markets.”

Trade worth A$285 billion a year continues with Australia’s major two-way trading partner, while thawing ties see Beijing wind back impediments placed on a raft of Australian commodity exports in 2020 amid a diplomatic dispute.

However, it was important to recognize the relationship between the two nations was “not going back to where we were 15 years ago,” Ms. Wong said in media interviews.

“We know that we want a more stable relationship with China, but we know we’re not going to be able to continue to separate our economic and our strategic relationship,” she told Nine’s Today Show.

As China operates as a “great power in the world”, it was inevitable there would be areas where Australia and China did not have the same interests, she added.

Ms. Wong called China’s recent military drills around Taiwan “destabilizing,” adding, “We would urge de-escalation.”

“Australia’s position is, very clearly, no unilateral change to the status quo,” she told Sky News in the interview. — Reuters

Why reading books is good for society, wellbeing and your career

April 12, 2023 | 1:52 pm

SOURCE: THE CONVERSATION

TikTok allows video up to 10 minutes, but surveys show almost half its users are stressed by anything longer than a minute. An Instagram video can be up to 90 seconds, but experts reckon the ideal time to maximise engagement is less than 15 seconds. Twitter doubled the length of tweets in 2017 to 280 characters, but the typical length is more like 33 characters.

It’s easy to get sucked into short and sensational content. But if you’re worried this may be harming your attention span, you should be. There’s solid evidence that so many demands on our attention make us more stressed, and that the endless social comparison makes us feel worse about ourselves.

For better mental health, read a book.

Studies show a range of psychological benefits from book-reading. Reading fiction can increase your capacity for empathy, through the process of seeing the world through a relatable character. Reading has been found to reduce stress as effectively as yoga. It is being prescribed for depression – a treatment known as bibliotherapy.

Book-reading is also a strong marker of curiosity – a quality prized by employers such as Google. Our research shows reading is as strongly associated with curiosity as interest in science, and more strongly than mathematical ability.

And it’s not just that curious minds are more likely to read because of a thirst for knowledge and understanding. That happens too, but our research has specifically been to investigate the role of reading in the development of curious minds.

Our findings come from analysing data from the Longitudinal Surveys of Australian Youth, which tracks the progress of young Australians from the age of 15 till 25.

Longitudinal surveys provide valuable insights by surveying the same people – in this case a group of about 10,000 young people. Every year for ten years they are asked about their achievements, aspirations, education, employment and life satisfaction.

There have been five survey cohorts since 1998, the most recent starting in 2016. We analysed three of them – those beginning in 2003, 2006 and 2009, looking at the data up to age 20, at which age most have a job or are looking for one.

The survey data is rich enough to develop proxy measures of reading and curiosity levels. It includes participants’ scores in the OECD Programme for International Student Assessment tests for reading, mathematics and science ability. There are survey questions about time spent reading for pleasure, time reading newspapers or magazines, and library use.

To measure curiosity, we used respondents’ answers to questions about their interest in the following:

learning new things
thinking about why the world is in the state it is
finding out more about things you don’t understand
finding out about a new idea
finding out how something works.

We used statistical modelling to control for environmental and demographic variables and distinguish the effect of reading activity as a teenager on greater curiosity as a young adult. This modelling gives us confidence that reading is not just correlated with curiosity. Reading books helps build curiosity.

Does this mean if you’re older that it’s too late to start reading? No. Our results relate to young people because the data was available. No matter what your age, deep reading has benefits over social-media scrolling.

The short-term dopamine rush of scrolling on a device is an elusive promise. It depletes rather than uplifts us. Our limbic brain – the part of the brain associated with our emotional and behavioural responses – remains trapped in a spiral of pleasure-seeking.

Studies show a high correlation between media multitasking and attention problems due to cognitive overload.

The effect is most evident among young people, who have grown up with social media overexposure.

US social psychologist Jonathan Haidt is among the researchers warning that high social media use is a major contributor to declining mental health for teenage girls:

Boys are doing badly too, but their rates of depression and anxiety are not as high, and their increases since 2011 are smaller.

Why this “giant, obvious, international, and gendered cause”? Haidt writes:

Instagram was founded in 2010. The iPhone 4 was released then too — the first smartphone with a front-facing camera. In 2012 Facebook bought Instagram, and that’s the year that its user base exploded. By 2015, it was becoming normal for 12-year-old girls to spend hours each day taking selfies, editing selfies, and posting them for friends, enemies, and strangers to comment on, while also spending hours each day scrolling through photos of other girls and fabulously wealthy female celebrities with (seemingly) vastly superior bodies and lives.

In 2020 Haidt published research showing girls are more vulnerable to “fear of missing out” and the aggression that social media tends to amplify. Since then he’s become even more convinced of the correlation.

Social media, by design, is addictive.

With TikTok, for example, videos start automatically, based on what the algorithm already knows about you. But it doesn’t just validate your preferences and feed you opinions that confirm your biases. It also varies the content so you don’t know what is coming next. This is the same trick that keeps gamblers addicted.

If you are having difficulty choosing between your phone and a book, here’s a simple tip proven by behavioural science. To change behaviour it also helps to change your environment.

Try the following:

Carry a book at all times, or leave books around the house in convenient places.
Schedule reading time into your day. 20 minutes is enough. This reinforces the habit and ensures regular immersion in the book world.
If you’re not enjoying a book, try another. Don’t force yourself.

You’ll feel better for it – and be prepared for a future employer asking you what books you’re reading. – Reuters

IMF flashes financial risk warnings but urges continued inflation fight

April 12, 2023 | 1:23 pm

IMF — A participant stands near a logo of the International Monetary Fund at the annual meeting in Nusa Dua, Bali, Indonesia, Oct. 12, 2018. — REUTERS/JOHANNES P. CHRISTO/FILE PHOTO

WASHINGTON – The International Monetary Fund warned on Tuesday that lurking financial system vulnerabilities could erupt into a new crisis and slam global growth this year, but urged member countries to keep tightening monetary policy to fight persistently high inflation.

The warnings set an ominous tone for the IMF and World Bank spring meetings in Washington this week, with conflicting economic and market forces clouding the policy path as growth slows in response to rapid central bank interest rate hikes.

The IMF on Tuesday edged its 2023 global growth forecasts lower, its baseline assumptions excluding, for now, a major new flare-up of financial system turmoil after the failures in March of U.S. lenders Silicon Valley Bank and Signature Bank and Switzerland’s forced sale of Credit Suisse.

The Fund’s World Economic Outlook forecast real GDP growth of 2.8% in 2023 and 3.0% in 2024 – one-tenth of a percentage point lower than what it predicted in January for each year. The global economy grew 3.4% in 2022.

The downgrades reflected weaker performances in some larger economies, such as Japan, Germany, India and Brazil, offsetting a stronger performance in the United States and a shallower contraction in Britain. The IMF also cited expectations of tighter financial conditions this year.

But its forecast was dominated by downside risks, including even higher inflation, an escalation of the war in Ukraine and a severe adverse scenario of a new financial crisis that could prompt sharp pull-backs in lending and household spending and a rush into safe-haven assets. The latter could slam global growth back to about 1% this year, effectively a recession on a per-capita GDP basis.

‘PERILOUS’ RISKS

The IMF’s Global Financial Stability Report warned of a “perilous combination of vulnerabilities” in financial markets, saying that some participants had failed to adequately prepare for the impact of interest rate increases.

Such risks had increased rapidly in the wake of last month’s turmoil in the global financial system, with investors remaining on edge and some looking for the next weakest link that could spread contagion, IMF officials said.

“Even if you think that on average, banks have a lot of capital and liquidity, there could be these weak institutions that then spill back into the system as a whole,” Tobias Adrian, the director of the IMF’s Monetary and Capital Markets Department, told Reuters.

Despite the warnings, the IMF’s chief economist, Pierre-Olivier Gourinchas, said inflation is still the bigger problem and that price stability should take precedence over financial stability risks for central banks’ monetary policy. Only in the event of a very severe financial crisis should those priorities be reversed, he said in a news conference.

YELLEN PUSHBACK

U.S. Treasury Secretary Janet Yellen pushed back on the IMF’s outlook, telling a separate news conference that the outlook was “reasonably bright” though she said she was staying “vigilant” to downside risks including banking pressures and the war in Ukraine.

“I wouldn’t overdo the negativism about the global economy,” Yellen said, adding that a number of economies, including the United States, were proving resilient with strong labor markets, easing supply chain problems and lower energy costs.

Yellen said she had not seen evidence of a squeeze in credit after the SVB and Signature Bank failures, and that the U.S. banking system was sound, with strong capital and liquidity positions. She added that the global financial system was also resilient due to reforms enacted after the 2008 financial crisis. — Reuters

Credit Suisse rescue receives initial snub from Swiss parliament

April 12, 2023 | 11:39 am

BERN – Switzerland’s parliament on Tuesday failed to approve the 109 billion Swiss francs ($120.5 billion) of financial guarantees used to rescue Credit Suisse last month, in a first-round vote that was largely symbolic given the state had committed the funds.

The lower house retrospectively rejected the rescue near midnight, with heated debates continuing into the early hours of Wednesday morning as members discussed other measures related to Credit Suisse.

Earlier on Tuesday, Switzerland’s upper house had approved the rescue, meaning the two chambers of the legislative body will vote again on Wednesday.

Lawmakers were recalled for a rare extraordinary session to discuss the rapid rescue of Credit Suisse and the Swiss government’s open checkbook response to a collapse that many in the country have blamed on top management.

A shotgun marriage which saw Credit Suisse taken over by Zurich-based rival UBS for 3 billion Swiss francs and propped up with more than 250 billion Swiss francs in guarantees and support has been the subject of widespread criticism.

While earlier in the day, 29 of Switzerland’s 46-member Council of States upper house approved the measure, it was later rejected with 102 of the 200-Member National Council voting against it.

The votes are, however, largely symbolic because the state committed the funds and lawmakers cannot overturn that decision.

In the lead-up to the merger last month, Swiss emergency law was used so that a sub-group of six members of parliament approved the financial commitment on behalf of the legislative body, to the ire of the almost 250 lawmakers left without a say.

“The use of emergency law has reached a level in the last three years that is beginning to annoy me,” Hansjoerg Knecht, a member of Parliament’s upper house, said.

Calling the situation where the legislative body can only approve the already committed credits “unsatisfactory”, Knecht said if Credit Suisse was to require more cash, there should be no use of emergency law to bypass parliament.

‘LOTS OF QUESTIONS’

Switzerland’s finance minister had addressed the Council of States before the vote and acknowledged the ire being voiced.

“I heard anger, I heard frustration, sometimes I also heard a bit of helplessness,” Karin Keller-Sutter said, adding that the merger between historic cross-town rivals Credit Suisse and UBS was not a forced marriage, but one of convenience.

She also said there needed to be a discussion around the kind of financial centre Switzerland wanted to be and whether it wanted to continue playing in the top league globally.

“What kind of consequences does this have for the financial regulator? For politics? These discussions need to be had. What do we really want and if we want that, we won’t get there without carrying certain risk in future as well,” she said.

A poll of Swiss economists found that nearly half thought the takeover of Credit Suisse by UBS was not the best solution, warning the saga had dented Switzerland’s reputation.

Celine Widmer, a Swiss National Council member for the left-leaning Social Democrats told Reuters ahead of the vote that “lots of questions” needed to be answered.

Politicians also questioned why the Swiss financial regulator was unable to prevent Credit Suisse’s failure.

“Does FINMA need stronger instruments or have they done a bad job?” Eva Herzog asked during a speech to the upper house.

Ms. Herzog is one of the six members of parliament who approved the rescue deal on behalf of the legislative body.

As part of the unusual event, the third such session in more than 20 years, the Swiss parliament had a chance to challenge the rushed rescue package and to discuss whether conditions could be imposed on Credit Suisse.

Last week, Switzerland announced it was cutting bonus payments for Credit Suisse’s top management.

Credit Suisse’s rescue angered not only politicians but many in Switzerland. A survey by political research firm gfs.bern found a majority of Swiss did not support the deal.

There are also growing worries about jobs and in an open letter to parliament, the Swiss Bank Employees’ Association said that Credit Suisse and UBS must freeze any cuts. – Reuters

US, Philippines agree to complete road map for security assistance for next 5-10 years

April 12, 2023 | 11:23 am

Balikatan-US-PHL — AMERICAN and Filipino troops attend the opening of the annual joint military exercises called Balikatan on March 28, 2022 at the Philippine military’s headquarters in Quezon City. — PHILIPPINE STAR/ WALTER BOLLOZOS

WASHINGTON, April 11 (Reuters) – The top defense and diplomatic officials from the United States and Philippines agreed on Tuesday to complete a road map in coming months to cover the delivery of U.S. defense assistance to the Philippines over the next five to 10 years.

US Defense Secretary Lloyd Austin said the long-time allies, which share concerns about an increasingly assertive China, discussed delivery of “priority defense platforms” including radars, drones, military transport aircraft and coastal and air defense systems at a so-called 2+2 meeting in Washington that also involved US Secretary of State Antony Blinken and Philippine counterparts.

A joint statement said “adoption of a Security Sector Assistance Roadmap in the coming months will guide shared defense modernization investments and inform the delivery of priority platforms over the next 5 to 10 years.”

Philippines Foreign Minister Enrique Manalo told the same news conference the two sides “redoubled” their commitment to modernizing the Philippines-US alliance in recognition that “our partnership will need to play a stronger role in preserving an international law-based international order.”

Experts say the United States sees the Philippines as a potential location for rockets, missiles and artillery systems to counter a Chinese amphibious invasion of Taiwan, which China claims as its own.

Mr. Austin said that it was “too early” to discuss what assets the United States would like to station at Philippine military bases under a recently expanded Enhanced Defense Cooperation Agreement (EDCA).

Mr. Manalo said the EDCA sites were mainly aimed at improving military interoperability, addressing potential humanitarian disasters “and perhaps respond to other types of security challenges,” but did not elaborate.

The Pentagon has not specifically said what the additional sites will be used for, except that work would include airport expansion and training involving naval assets.

Mr. Manalo said on Monday Washington and Manila will need to discuss what the US may do with its access to the EDCA sites.

EDCA allows US access to Philippine bases for joint training, pre-positioning of equipment and building of facilities such as runways, fuel storage and military housing, but not a permanent presence.

The joint statement said the United States expects to boost its allocated spending for EDCA sites to over $100 million by the end of 2023, against a previously announced $80 million.

The two sides also agreed to fast track new bilateral defense guidelines.

Southeast Asia expert Greg Poling at Washington’s Center for Strategic and International Studies said such guidelines were aimed at providing strategic direction and to lay out each side’s responsibilities.

“The US and Japan negotiated defense guidelines in 1978 for the Cold War, 1998 focused on North Korea, and 2015 focused on China, whereas the US and Philippines have never done so,” he said.

The Washington meeting came after more than 17,000 Philippine and US soldiers began their largest ever joint military drills on Tuesday, highlighting their shared concern about China, which has rival territorial claims to the Philippines in the disputed South China Sea.

US-Philippines relations have warmed considerably under Philippines President Ferdinand Marcos Jr, and the 2+2 meeting underlined that as the first of its kind in seven years. But Manila treads a delicate path with China, the region’s economic powerhouse.

Mr. Marcos assured China on Monday that military bases accessible to the US would not be used in offensive action, stressing that the arrangement with Washington was designed to boost his country’s defenses. – Reuters

World Bank chief says Western European countries need to help fund Ukraine reconstruction

April 12, 2023 | 11:16 am

WASHINGTON – The World Bank is ready to do its part in rebuilding Ukraine after the devastation of Russia’s invasion, but international financial institutions cannot shoulder the sums involved alone and Western European countries will have to chip in, World Bank President David Malpass said on Tuesday.

Mr. Malpass, speaking at the spring meetings of the International Monetary Fund and World Bank, noted that the World Bank had played a big role in rebuilding Europe’s steel industry after World War Two and could play a similar role in Ukraine.

“But the size is daunting,” he said, citing a recent estimate that it would cost $411 billion to rebuild Ukraine’s economy, or 2.6 times its expected 2022 gross domestic product. The number, calculated by the World Bank, United Nations, European Commission and Ukraine, was up sharply from an estimate of $349 billion released last September.

The World Bank’s total commitments in 2022 totaled $75 billion, a 50% increase from the average.

The European Union had large funding sums that could be brought to bear, Mr. Malpass said.

“The bank is prepared to play its role in the reconstruction, but I do need to set the expectations for the world that the amount to rebuild the electricity sector, the road sector, a railroad sector are way bigger relative to the size of the balance sheets of the international financial institutions,” he said.

Ukrainian President Volodymyr Zelenskiy will call for continued support for the war-torn country in a virtual speech on Wednesday to top finance officials, joined by Prime Minister Denys Shmyhal and Finance Minister Serhiy Marchenko, who are attending the meetings in person.

US Treasury Secretary Janet Yellen on Tuesday repeated Washington’s commitment to support Ukraine for as long as needed. She said support from the United States and the European Union would take Ukraine through the end of the year, but if the war continued, Washington would have to work with partners to provide the support needed.

She noted that a multi-donor platform has been set up to coordinate a longer-term plan for reconstruction. Washington has also allocated some money for immediate short-term reconstruction needs, including rebuilding its electricity grid. — Reuters

Be an Aura Portrait Master and win exciting prizes from vivo

April 12, 2023 | 11:00 am

Customers who will buy any of the vivo V27 Series variants will get a chance to win a vivo V27e smartphone plus more fantastic prizes!

The series of exciting surprises from vivo are far from over as one of the leading smartphone brands in the country announces the vivo Be an Aura Portrait Master promo, giving Filipino fans a chance to score a vivo V27e and more. Customers who will purchase any variant of the vivo V27 Series from April 15 to April 30 in select concept stores and kiosks nationwide are eligible to play a game of roulette, earn a raffle entry and win amazing prizes.

For every purchase of a vivo V27e or vivo V27 5G smartphone, customers will have a one-time shot to play the vivo roulette. Bring on your lucky charms as a Voguard Fitness Tracker or a vivo backpack is up for grabs!

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Three (3) winners of a vivo V27e smartphone;
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Twenty (20) winners of a Homefun Garment Steamer.

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Participating vivo Concept Stores and Kiosks
Ayala Center Cebu	Robinsons Place Ormoc	SM City Grand Central	SM City Tanza
Ayala Malls Feliz	Robinsons Place Tacloban	SM City Iloilo	SM City Tarlac
Baguio Center Mall	SM Araneta City	SM City Legazpi	SM City Taytay
Festival Mall	SM CDO Downtown Premier	SM City Lipa	SM City Telabastagan
Fisher Mall Quezon Ave	SM Center Downtown Tuguegarao	SM City Manila	SM City Trece Martires
Gaisano Capital San Carlos	SM Center Lemery	SM City Manila Service Center	SM City Tuguegarao
Gaisano Grand Mall Calinan	SM Center Sangandaan	SM City Marikina	SM City Urdaneta Central
Gaisano Grand Mall Mactan	SM City Bacolod	SM City Marilao	SM City Valenzuela
Gaisano Grand Mall Polomolok	SM City Bacoor	SM City Masinag	SM Hypermarket FTI, Taguig
Gaisano Mall of Davao	SM City Baguio	SM City Molino	SM Lanang Premier
Gaisano Mall of Digos	SM City Baliwag	SM City Naga	SM Mall Of Asia
Gaisano Mall of Tagum	SM City Batangas	SM City North Edsa – Annex	SM Megacenter Cabanatuan
Glorietta 1	SM City BF Parañaque	SM City North Edsa – Annex Service Center	SM Megamall
KCC Mall de Zamboanga	SM City Bicutan	SM City Novaliches	SM Savemore Tacloban
KCC Mall of Marbel	SM City Butuan	SM City Olongapo Central	SM Southmall
Market! Market!	SM City Cabanatuan	SM City Pampanga	TriNoma
MarQuee Mall	SM City Calamba	SM City Puerto Princesa	Tutuban Center Mall
Pacific Mall Mandaue	SM City Cauayan	SM City Pulilan	Victory Pasay Mall
Riverbanks Center	SM City Cebu	SM City Rosales	Victory Tanauan
Robinsons Galleria Ortigas	SM City Clark	SM City San Jose	Vista Mall Bataan
Robinsons Galleria South	SM City Consolacion	SM City San Lazaro	Vista Mall Taguig
Robinsons Place Antipolo	SM City Dasmariñas	SM City San Mateo	Vita Mall Greenhills
Robinsons Place Lipa	SM City Davao	SM City Sta Mesa	WalterMart Dasmariñas
Robinsons Place Malolos	SM City East Ortigas	SM City Sta. Rosa	WalterMart North Edsa
Robinsons Place Manila	SM City Fairview	SM City Sucat

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Wind and solar hit record 12% of global power generation last year

April 12, 2023 | 10:54 am

LONDON – Wind and solar energy represented a record 12% of global electricity generation last year, up from 10% in 2021, a report on Wednesday found.

The report by climate and energy independent think tank Ember said last year could have marked peak emissions from the power sector, which is the largest source of planet-warming carbon dioxide (CO2) worldwide.

Ember studied power sector data from 78 countries in its annual global electricity review, representing 93% of global power demand.

It concluded that all renewable energy sources and nuclear power combined represented a 39% share of global generation last year, with solar’s share rising by 24% and wind by 17% from the previous year.

The growth in wind and solar in 2022 met 80% of the rise in global electricity demand.

In spite of a global gas crisis and some countries firing back up old coal-fired power stations to meet demand, coal generation grew by 1.1%, while gas-fired power generation declined by 0.2% as high prices made it more expensive to use the fuel.

While CO2 emissions from the power sector rose by 1.3% last year, the growth of wind and solar slowed that rise. If all electricity from wind and solar generation came instead from fossil fuels, power sector emissions would have been 20% higher in 2022, the report said.

Assuming average growth in electricity demand and in clean power, Ember forecasts fossil fuel generation will decline 0.3% this year, followed by bigger falls in subsequent years as more wind and solar comes online.

As the power sector is the leading source of CO2 emissions, the International Energy Agency says it needs to become the first sector to reach net zero emissions by 2040 and this would mean wind and solar would have to reach 41% of global electricity generation by 2030. – Reuters

Phil Star columnist and PAGEONE CEO wins Thought Leader of the Year Award in APAC

April 12, 2023 | 10:30 am

The multi-awarded Chairman and Chief Executive Officer of PAGEONE Group and business columnist of Philippine Star and BusinessWorld wins another international award recognizing him for his exemplary work in public relations and reputation management.

Ron F. Jabal, APR, won a Bronze award and was adjudged one of the Thought Leaders of the Year for Asia Pacific in the 2023 APAC Stevie Awards.

The Though Leader of the Year award recognizes the innovative achievements of individuals who have demonstrated excellence in thought leadership in Asia Pacific.

Mr. Jabal regularly writes a business column in Philippine Star and its sister publication, BusinessWorld. He writes about reputation management and sustainability issues.

Based on the comments of the judges, Mr. Jabal is being recognized as an excellent example of thought leader as he spearheads other powerful executives and helps steward organizations and brands in shaping people’s behavior towards positive change.

A jury panel member commended him for his expertise in communication, public relations, and reputation management. “With numerous accolades, extensive experience, and advisory roles in prestigious organizations, Ron is a sought-after expert. Ron’s influence is evident across multiple sectors with regular contributions to leading newspapers, founder of the Reputation Management Association of the Philippines, and an advisor for governmental and educational institutions,” one judged stressed.

Another judge wrote, “He is a well-known and respected thought leader in the public relations industry, not only in the Philippines but also throughout Southeast Asia. His extensive experience in providing communication advice to multi-million dollar projects for various international organizations, as well as his numerous awards from various award-giving bodies, attest to his expertise and leadership. Keep up the good job”.

In receiving the news of this recognition, Mr. Jabal said, “I am truly honored by this recognition. But this will not happen without the collective support of my team in PAGEONE Group and all our clients and supporters. Rest assured that I will continue to promote the scholarship and practice of good reputation management and principles,”.

Throughout his three decades of PR experience, Ron has already received awards and recognition in London, New York, San Francisco, Washington, Toronto, Beijing, Hong Kong, Singapore and the Philippines for his body of PR works. As an international communications executive, he has been awarded with more than 200 metals from local and international award giving bodies.

In 2013, Ron was awarded the Global Communicator of the Year in UK, London by Melcrum Awards. In 2020, he was recognized as People of The Year (Communicator of the Year) in the Golden Flag Awards in Beijing, China, for his body of international work in communication, advocacy, public relations, marketing, advertising and branding. In 2021, he was recognized as Best PR Practitioner in Southeast Asia during the 3^rd ASEAN PR Excellence Awards in Jakarta, Indonesia. In 2022, he was adjudged Most Innovative Communications Professional for Asia Pacific by the Stevie Awards in Singapore.

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IMF hikes Philippine growth outlook

April 12, 2023 | 12:35 am

construction-worker-mural — A construction worker walks next to colorful mural in Barangay Kaybagal in Tagaytay City. — PHILIPPINE STAR/EDD GUMBAN

By Keisha B. Ta-asan, Reporter

WASHINGTON — The International Monetary Fund (IMF) expects the Philippines to post the fastest growth in emerging and developing Asia this year, despite a global economic slowdown.

In its latest World Economic Outlook (WEO) released here on Tuesday morning, the IMF raised its 2023 gross domestic product (GDP) growth projection for the Philippines to 6%, from the 5% forecast given in January.

This would be slower than the 7.6% GDP expansion in 2022 but matched the lower end of the government’s 6-7% target for this year.

Based on IMF projections, the Philippines’ 6% GDP growth outlook is the fastest among emerging and developing Asia economies. It is faster than India (5.9%), China (5.2%), Vietnam (5.8%), Indonesia (5%), Malaysia (4.5%) and Thailand (3.4%).

However, the multilateral lender also lowered its 2024 growth projection for the Philippines to 5.8%, from 6% previously. The government targets 6.5-8% GDP growth for 2024.

In the WEO report, the IMF said high uncertainty continues to cloud the global economic outlook this year, citing downside risks from central banks’ tight monetary stance, high debt levels, limited fiscal buffers, commodity price spikes and geopolitical tensions.

“But these forces are now overlaid by and interacting with new financial stability concerns. A hard landing — particularly for advanced economies — has become a much larger risk. Policymakers may face difficult trade-offs to bring sticky inflation down and maintain growth while also preserving financial stability,” the IMF said.

The IMF trimmed its global growth forecast for 2023 to 2.8% (from the 2.9% given in January) and for 2024 to 3% (from 3.1%). If realized, this will be slower than the 3.4% global expansion in 2022.

In a “plausible alternative scenario” with further financial sector stress, the IMF said global growth may decline to around 2.5% in 2023.

The IMF sees emerging and developing Asia expanding by 5.3% this year and 5.1% in 2024.

Pierre-Olivier Gourinchas, economic counsellor and the director of research of the IMF, said in a statement that inflation is stickier than expected, even from a few months ago.

“While global inflation has declined, that reflects mostly the sharp reversal in energy and food prices. But core inflation, which excludes energy and food, has not yet peaked in many countries,” Mr. Gourinchas said.

In the Philippines, inflation eased to 7.6% in March from 8.6% in February. However, core inflation quickened to a new 22-year high of 8% from 7.8% a month prior.

Since May 2022, the Monetary Board raised key interest rates by 425 bps, bringing the benchmark policy rate to a near 16-year high of 6.25%.

The IMF expects Philippine headline inflation this year to reach 6.3%, higher from the previous 4.5% estimate. It sees Philippine inflation slowing to 3.2% by 2024.

These forecasts are higher than the BSP’s average full-year projection of 6% this year and 2.9% for 2024.

“More worrisome are the side effects that the sharp monetary policy tightening of the last year is starting to have on the financial sector, as we have repeatedly warned might happen. Perhaps the surprise is that it took so long,” Mr. Gourinchas said.

The IMF said the recent instability in the global banking sector showed the economic recovery is still fragile, and that vulnerabilities exist both among banks and nonbank financial intermediaries.

The failures of Silicon Valley Bank and Signature Bank of New York and the loss of confidence in Credit Suisse rattled the global financial system.

“We are therefore entering a tricky phase during which economic growth remains lackluster by historical standards, financial risks have risen, yet inflation has not yet decisively turned the corner,” Mr. Gourinchas said.

The effects of the recent banking turmoil have been so far limited for emerging markets and developing economies, the IMF said.

“For emerging markets and developing economies, economic prospects are on average stronger than for advanced economies, but these prospects vary more widely across regions,” it said.

Based on the IMF’s Global Financial Stability Report, emerging markets have smoothly managed the aggressive tightening of monetary policy compared to advanced economies.

“In addition to having generally stronger fundamentals and higher buffers than in the past, they have benefited from policy space created by commencing their own tightening cycles ahead of advanced economies,” the IMF said.

FDI net inflows fall to 20-month low

April 12, 2023 | 12:34 am

euro-dollar-currency — US dollar and euro banknotes are seen in this illustration taken July 17, 2022. — REUTERS/DADO RUVIC

By Luisa Maria Jacinta C. Jocson, Reporter

FOREIGN direct investment (FDI) net inflows slumped to a 20-month low in January as heightened global economic uncertainty weighed on investor sentiment.

FDI net inflows plunged 45.7% to $448 million in January from $824 million in the same month a year ago, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The January figure was the lowest monthly FDI inflow since the $426 million recorded in May 2021.

“FDI net inflows declined during the month amid global economic uncertainties and high inflation, which continued to weigh on investor decisions,” the BSP said in a statement.

The BSP data showed a decline in non-residents’ net investments in debt instruments and equity capital in January.

Non-residents’ net investments in debt instruments of local affiliates fell by 56.6% to $280 million from $645 million in the same month a year ago.

Investments in equity and investment fund shares slipped 6.2% to $168 million in January from $179 million a year ago.

January saw equity other than reinvested earnings decline by 13.1% to $93 million from $107 million.

Broken down, gross placements jumped by 26.3% to $149 million while withdrawals surged by 413.6% to $56 million.

Equity capital placements were mainly from Japan, Singapore, and the United States. These were mostly invested in manufacturing, financial and insurance, and real estate industries.

On the other hand, reinvestment of earnings increased by 4.1% to $75 million from $72 million in January 2022.

“The weak net FDI in January bodes poorly for the rest of the year. A weaker global economy and higher interest rates could have deterred investors and will likely continue to do so for the first half of the year, at least,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that elevated inflation, rising interest rates and risk of a US recession weighed on investment inflows in January.

Inflation accelerated to a 14-year high of 8.7% in January, before easing to 8.6% in February and 7.6% in March.

Since May 2022, the central bank has raised its benchmark rate by 425 basis points. This brought the policy rate to 6.25%, the highest in nearly 16 years.

“The government’s economic team’s roadshows could pique investor interest, but as long as we are in the midst of a high interest rate environment, investment expansion will likely remain limited for the rest of the year,” Ms. Velasquez said.

On the other hand, Mr. Ricafort said net FDIs could pick up in the next few months as the Philippine economy is expected to have one of the fastest growth rates in the region. He also expects investment commitments obtained by from President Ferdinand R. Marcos, Jr. from his foreign trips to materialize in the coming months.

The government is targeting 6-7% gross domestic product growth this year.

This year, the BSP expects FDI net inflows to reach $11 billion.

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