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Philstar Media Group expands with tech-focused news site Multiverse PH

(Fom left to right) Kat Gonzales, Operations Head, YGG Pilipinas; Jayvee Fernandez, Chief Marketing Officer and Co-Founder, Anito Legends; Paolo Romero, editor, Multiverse.PH; Kenneth Stern, General Manager, Binance Philippines; Sec. Ivan John Uy, Secretary, Department of Information and Communications Technology; Catherine Anne Casas, Senior VP & Head of Blockchain and API Business Group, Metaverse Center of Excellence and Government Projects; Lucien C. Dy Tioco, Executive Vice President, PhilSTAR Media Group

The Philstar Media Group on Tuesday launched a news website that is focused on new technologies and their impact on consumers, businesses, and the economy.

Multiverse PH (multiverse.ph) is expected to help bridge the gap between public awareness and the adoption of such technologies, according to PhilStar Media Group Executive Vice-President  Lucien C. Dy Tioco.

“Through this platform, we will learn about new technologies that will have an impact on our daily lives and how we can better embrace them.”

Multiverse PH will cover topics like Web 3.0, which is an upgraded Internet technology that uses machine learning, artificial intelligence, blockchain technology, and cryptocurrency.

According to Secretary Ivan John E. Uy of the Department of Information and Communications Technology, there have been “misconceptions” about cryptocurrency, but people need to understand that Web 3.0 is a larger concept.

“People need to understand Web 3.0 and how it handles and protects data, as well as its many applications other than crypto that can have a profound impact on our society,” he said.

For his part, RCBC Executive Vice-President and Chief Innovation and Inclusion Officer Angelito “Lito” M. Villanueva said that those living in far-flung areas need the most awareness about Web3 and blockchain because they are more susceptible to cybercrime.

Catherine Bautista-Casas, senior vice-president and head of blockchain and API business group at UnionBank of the Philippines, said: “There’s a lack of deeper understanding of what blockchain technology is.”

“We need risk management, we need compliance, and we need talents,” she said when asked what it would take for Filipinos to embrace blockchain technology. 

According to Mr. Uy, his department is looking into potential applications for blockchain technology in government, particularly in the areas of registry and online voting. — ALB

TNT, Meralco eye short route to Governors’ Cup semifinals

PBA IMAGES

Games Today
(Smart Araneta Coliseum)
3 p.m. — Phoenix vs TNT
5:45 p.m. — Magnolia vs Meralco

LIKE fellow top tier teams San Miguel and Barangay Ginebra before them, it’s the intention of No. 1 TNT and No. 4 Meralco to take the short route to the PBA Governors’ Cup semifinals.

“That’s the grand plan,” Tropang Giga mentor Jojo Lastimosa said ahead of today’s quarterfinals at the Smart Araneta Coliseum.

Mr. Lastimosa’s streaking troops seek to cash in on their win-once incentive against No. 8 Phoenix at 3 p.m. while the Bolts eye the clincher against No. 5 Magnolia at 5:45 p.m.

If successful, TNT and Meralco set themselves up for an explosive best-of-five dispute for a finals seat similar to the one they engaged in back in the 2019 edition. That previous semis confrontation reached the full route before the Bolts prevailed.

The two MVP Group teams go for their own blitz three days after No. 2 San Miguel Beer and No. 3 Ginebra made quick work of their lower-ranked quarters opponents, Converge (121-105) and import-less NLEX (127-93), respectively.

Bannering TNT’s quest for glory is the efficient Rondae Hollis-Jefferson, who is personally fueled by an intense desire to bring home the crown.

“I told coach Jojo and the players that I haven’t won a pro championship so the desire, the determination to do that has kept me in the zone,” said Mr. Hollis-Jefferson, who leads the stats race for Best Import award after the eliminations.

Backing up the former NBA player are current and former Gilas Pilipinas mainstays such as RR Pogoy, Calvin Oftana, Jayson Castro and Kelly Williams as well as Fil-Am hotshot Mikey Williams. Poy Erram is also expected to return to active duty after undergoing knee procedure prior to the conference.

Though enjoying the edge in firepower and depth and riding a hot eight-game streak, TNT is not in any way taking the Fuel Masters crew of Du’Vaughn Maxwell, Jason Perkins, RJ Jazul, Tyler Tio, Encho Serrano lightly.

“It’s always their defense,” Mr. Lastimosa said of Jamike Jarin’s youthful but tough charges. They try to make you uncomfortable by playing their defense.”

Meanwhile, the Bolts are bent on making the most of the twice-to-beat advantage that they gratefully received when SMB handed NLEX a 120-106 defeat in the final game of the eliminations.

This led to a three-way tie for No. 4 among Meralco, Magnolia and NLEX at 7-4 with the Bolts emerging on top due to superior tiebreak points. — Olmin Leyba

LA Tenorio undergoing treatment for colon cancer, but not retiring

LA TENORIO — PBA IMAGES

BARANGAY Ginebra star LA Tenorio yesterday announced he is undergoing treatment for Stage 3 colon cancer.

This will keep him away from the game for a while but the PBA’s Iron Man insists he is not retiring yet.

“I have given not only 17 full years to the PBA, but have dedicated my whole life to basketball. I have committed my body and health for the love of the game. It has been my passion and love. Sadly, there are things beyond one’s control,” Mr. Tenorio said in a statement yesterday.

“But with my faith, I am lifting everything to God now and I believe there is a higher purpose as I go through this part of my life. I am not yet retiring from the game I love, and with the help of the best doctors in the Philippines and Singapore, I believe I can touch a basketball once more and return stronger,” he added with strong resolve.

Mr. Tenorio owns the league-record 744 consecutive games dating back to his rookie season in 2006. He even continued the streak despite an appendectomy operation prior to the 2020 Clark bubble.

The veteran playmaker missed his first PBA game last March 1 when Ginebra played Meralco in the elims and hasn’t seen action since.

Reason cited was “minor injury” but an apologetic Mr. Tenorio came clean yesterday and declared his health status to prevent “unnecessary gossip, fake news and misinterpretations.”

“I was recently diagnosed with Stage 3 colon cancer. The initial testing three weeks ago led me to instantly miss practices and games. I have completed my surgery last week and will soon undergo treatment for the next few months,” he said.

Mr. Tenorio thanked well-wishers and humbly asked for “respect for my family to go through this journey privately and discreetly as much as possible.”

“Together with my family and loved ones, you are all my strength, inspiration and what drives me to be the best person I can ever be, physically, mentally, and spiritually. I will see everyone very, very soon,” he said. — Olmin Leyba

Lady Spikers, Lady Bulldogs clash for UAAP leadership entering the second round

ANGEL CANINO — UAAP

Game Today
(Mall of Asia Arena)
10 a.m. — Adamson vs UP (men’s)
12 p.m. — Adamson vs UP (women’s)
2 p.m. — NU vs La Salle (women’s)
4 p.m. — NU vs La Salle

NEW era rivals and last season finalists National University (NU) and De La Salle University (DLSU) have played as good as advertised in the heating up UAAP Season 85 women’s volleyball tournament by occupying the top two spots with a game to go in the first round.

And after taking care of their initial assignments, the time is set to settle the score once more as reigning champion NU and runner-up De La Salle slug it out in a finals rematch at the Mall of Asia Arena for no less than the league leadership entering the second round.

The Lady Spikers sport an immaculate slate of 6-0 with the Lady Bulldogs just lurking on their coattails at 5-1, turning the battle at 2 p.m. into fireworks right after the appetizer between Adamson (4-2) and University of the Philippines (1-5) at 12 noon.

De La Salle failed to get a single win against NU last season including a sweep in the best-of-three finale but is banking on a beefed-up line-up with the addition of super rookie and UAAP juniors MVP Angel Canino to finally get the job done this time around.

Blocking, which DLSU is dominating led by the triple towers of Ms. Canino, Thea Gagate and Fifi Sharma, will also be one of Lady Spikers’ aces against the dreaded NU attacking combo of reigning MVP Mhicaela Belen and Allysa Solomon.

For NU, stopping an entirely different De La Salle side now with the newest gunner in Ms. Canino will be the deciding factor if it wishes to snatch the top seed and stabilize its title retention goal after being stunned by Santo Tomas early in the first round.

Meanwhile, defending titlist NU (6-0) and No. 4 De La Salle (4-2) also clash in a pivotal men’s division battle at 4 p.m. while Adamson (0-6) and UP (0-6) shoot for first win at 10 a.m. — John Bryan Ulanday

Montemayor tops Black Mamba Cross Country Race in San Mateo, Rizal

YOUNG blood Dave Montemayor reigned supreme over a bevy of elite counterparts in the Black Mamba Cross Country Race over the weekend at the Timberland Heights in San Mateo, Rizal.

The 22-year-old mountain bike rider endured the challenging terrain in the famed Rizal cross-country trail for the win in the 30K distance category of the event that also featured 10K for beginners.

Mr. Montemayor is hoping for his win to boost his bid to make the national cycling team someday with a focus for now to train harder by the help of his winnings from the Black Mamba racing tilt backed by San Mateo local government unit (LGU) under Mayor Omie Rivera.

National team campaigner Shagne Yao also graced the event as she gears up for an anticipated tough campaign in the 32nd Southeast Asian Games this May in Cambodia.

“This race is perfect for my endurance building and a gauge of my fitness level as I prepare for the SEA Games. The course is perfect for testing my speed and handling the technical climbs,” she said.

Other winners, powered by Black Mamba energy drink that made them surpass their limits in the tough race, in different categories were recognized prizes and commemorative trophies to mark their achievements.

Black Mamba said the event was a resounding success as the participants and their supporters also got to witness the picturesque beauty of the San Mateo mountain trails that made the races even better.

“We’re thrilled with how well the Black Mamba Cross Country Race went this year. We had an incredible turnout, and all participants did an amazing job on the course. We’re already looking forward to the next event of Black Mamba and we can’t wait to see what new challenges the course will bring,” said Gilbert Oliva of Black Mamba.

“The course was challenging, featuring steep climbs and slopes, and fast trail tracks but all racers were up to the challenge, pushing themselves to the limit and testing their endurance powered by Black Mamba energy drink at our aid stations and sumptuous servings of local food served by locals of San Mateo,” added Jayson Gabrinao, the course builder and event race director. — John Bryan Ulanday

Rebuilding Azkals have new coach in Barae Jrondi

MOROCCAN Barae Jrondi has been tapped as new coach of the rebuilding Philippine Azkals.

The 30-year-old Mr. Jrondi, who served as the Qatar Football Association’s technical supervisor of football clubs the last three years, will begin his tenure during the Azkals’ Middle East training camp this week.

In his first gig, the Pinoy booters will play Kuwait in Kuwait on March 24 and Jordan in Doha, Qatar four days later.

“It’s a big honor and responsibility for myself and the staff to take his challenge moving forward,” Mr. Jrondi, a former Lusail FC team analyst and Aldafna FC coach said upon his appointment.

He will get a hand from former Azkals star Stephan Schröck in molding the youth-laden Philippine men’s side as it prepares for the FIFA World Cup Qualifiers in October.

“Creating a competitive team is the main objective and it requires careful considerations. I am really happy to have the (former) captain Stephan Schröck on the technical staff to get his point of view about player selection to get the right team dynamics,” the new mentor said.

The Azkals last saw action in the Dec. 20 to Jan. 16  Asean Football Federation (AFF) Mitsubishi Electric Cup, where they failed to make the semifinals after finishing fourth in Group A with three points on one win versus three losses. — Olmin Leyba

Ratcliffe won’t pay ‘stupid’ price for Man Utd

BRITISH billionaire Jim Ratcliffe has said he does not want to pay a “stupid” price for Manchester United (Man Utd) ahead of Wednesday’s deadline for second offers for the Premier League club.

Mr. Ratcliffe, a life-long United fan and founder of chemicals producer INEOS, put in a bid for the club in February.

United’s current owners, the Glazer family, began looking at options for the record 20-time English champions, including new investment or a potential sale, in November, 17 years after they bought the club for £790 million ($968.30 million) as part of a highly leveraged deal.

Any sale of United would likely exceed the biggest sports deal so far — the $5.2 billion including debt and investments paid for Chelsea, sources have told Reuters previously.

In an interview with the Wall Street Journal, Mr. Ratcliffe described the club as a “community asset” rather than a financial one. “How do you decide the price of a painting? How do you decide the price of a house? It’s not related to how much it cost to build or how much it cost to paint,” Mr. Ratcliffe said.

According to a Sky Sports report, United are set to receive more than five bids before Wednesday’s deadline for second offers. — Reuters

F1 infraction

When is an infraction not subject to penalty? For the Fédération Internationale de l’Automobile, it’s when previous transgressions were not sanctioned as well. That’s the message the Formula 1 governing body effectively sent after it reversed an earlier decision to strip Aston Martin’s Fernando Alonso of a podium finish in the Saudi Grand Prix. Simply put, he failed to properly serve a five-second penalty for not having lined up at the starting grid in accordance with regulations.

Confused? Well, you’re not alone. Even fans who dutifully followed the race saw themselves hard-pressed to understand how Murphy’s Law seemed to inject itself repeatedly from the get-go insofar as Alonso’s bid was concerned. First, he lined up wrongly in his second-place slot prior to the beginning sequence; the left tires of his AMR23 crossed the limit as marked. Then, when he was serving the five-second penalty for the mistake during a pit stop in the 18th lap, a rear jack evidently “touched” his car — which officials interpreted as “working” on the car, necessitating another penalty.

Which should have been well and good. Unfortunately, race stewards saw fit to declare a review of Alonso’s pit stop in the last of the 50-lap race. By that time, the veteran driver was well on his way to a third-place finish, which he then formally celebrated prior to being stripped of it; the additional 10-second penalty actually came close — make that three-tenths of a second close — to relegating him to fifth.

Needless to say, Aston Martin protested the outcome. And in the exercise of its right to take arbitrators to task, it came with evidence that other similarly situated cars were not hitherto penalized for having “touched” a piece of equipment. And so the powers that be had to do yet another about face. Unfortunately, the process took too long for comfort, thus adding to the discomfiture of all and sundry.

Governance problems are not new to Formula One, as the Abu Dhabi Grand Prix that decided the 2021 Drivers Championship proved only too well. That said, there has been a reasonable assumption that things would be better — much, much better — moving forward. After all, rules now require real-time reviews of potentially significant incidents by race control and the Remote Operations Center. Clearly, though, there is still much that needs to be done — and the FIA would do well to act decisively. There are only so many blows it can take before it finds its credibility shot for good.

 

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

‘Act now’: IPCC climate report appeals to all to salvage 1.5°C goal

A buoy is seen on the banks of the partially dry Lake Montbel at the foot of the Pyrenees Mountains as France faces records winter dry spell raising fears of another summer of droughts and water restrictions, March 13, 2023. — REUTERS/SARAH MEYSSONNIER

OSLO — Climate scientists on Monday appealed directly to everyone on the planet to seize a dwindling chance to limit global warming to 1.5 degrees Celsius (2.7 Fahrenheit) or risk harming people living today and their descendants for thousands of years.

With graphics showing individuals — from babies to pensioners — set to suffer ever more from rising heat, the report by the U.N.’s Intergovernmental Panel on Climate Change (IPCC) gives a more personal twist to findings about looming threats than its past studies directed at governments.

“There is a rapidly closing window of opportunity to secure a liveable and sustainable future for all,” the report said. “The choices and actions implemented in this decade will have impacts now and for thousands of years,” it added, pointing to long-term risks like desertification and rising sea levels.

U.N. Secretary-General António Guterres welcomed the report as a guide for defusing what he called a ticking “climate time bomb.” “Our world needs climate action on all fronts — everything, everywhere, all at once,” he said at the report’s launch.

Governments have fallen far short of pledges in the 2015 Paris Agreement to limit heating of the climate by shifting off fossil fuels, amid crises including COVID-19, Russia’s invasion of Ukraine, food shortages and strained ties between China and United States, the top two greenhouse gas emitters.

The IPCC summary for policymakers, condensing thousands of pages of climate science in six mammoth reports published since 2014, is sprinkled with references to healthier lifestyles, such as cycling, walking and diets rich in fruits and vegetables with less high-carbon meat.

It also outlines the surging risks to mental health from a warming climate.

“We brought in the human side” of climate change, Hoesung Lee, chair of the IPCC, told a news conference, saying it was a major shift since the last IPCC policy document in 2014 which had few references to individuals and their behavior.

Peter Thorn, one of the IPCC authors, said it was time for everyone to accept a share of responsibility.

“We at all levels — governments, communities, individuals — have made climate change somebody else’s problem,” he added.

The report was approved after a week-long meeting of scientists and governments in Interlaken, Switzerland, to negotiate the text.

It reiterates previous IPCC findings that it is “unequivocal” that humanity is to blame for climate change.

But notably, in a difference from earlier reports, it shows “high” or “very high” confidence from scientists about the scale of coming risks and the shrinking opportunities to address them.

The IPCC also appeals to people’s self-interest, saying that action to combat climate change by shifting to clean energy makes sense for health and wellbeing, in what delegates said was partly an attempt to win over those who doubt the science or economics.

WALKING, CYCLING
“Access to clean energy and technologies improves health, especially for women and children; low-carbon electrification, walking, cycling and public transport enhance air quality, improve health, employment opportunities and deliver equity,” the report said.

“The economic benefits for people’s health from air quality improvements alone would be roughly the same, or possibly even larger than the costs of reducing or avoiding emissions,” it added.

It said the planet has warmed by 1.1°C above pre-industrial times and is on track to breach 1.5°C — a threshold for ever more disastrous impacts — between 2030 and 2035 on current trends.

The Paris Agreement seeks to limit warming to “well below” 2°C while “pursuing efforts” for 1.5°C.

“Limiting warming to 1.5°C and 2°C involves rapid, deep and in most cases immediate greenhouse gas emission reductions,” the report said, warning that overshooting 1.5°C could trigger impacts such as an irreversible thaw of ice sheets that would push up sea levels.

One illustration in the report shows how risks — including droughts, fires, sea level rise and heatwaves — will climb steadily during a person’s lifetime.

A colored background shows low risks with a cool blue, through beige and orange and ending with red and purple at the hottest, riskiest future in the second half of the century.

Someone born in 1950, for instance, is shown living mostly in a benign beige, for instance, only facing an orange level of risk in 2020, while holding a walking stick at 70. A baby seen crawling in 2020 will quickly move from orange to a lifetime of red and purple risks as they age to 70 in 2090. 

“It’s all hands on deck. What matters is human lives and futures, the liveability of this planet,” said Kaisa Kosonen, who led the Greenpeace delegation in Interlaken. “There is a role for everyone.”

The report, she added, is a “final warning” from the IPCC for action to avert 1.5°C.

The IPCC also sees better protection of nature as a crucial part of measures to tackle climate change and protect people.

As emissions rise, forests, coral reefs and the thawing Arctic are at risk of “extinctions and an irreversible loss of biodiversity” — and those changes threaten key natural systems people depend on, such as rainfall for water security and farming, the report said.

COP28
The report will guide the next annual U.N. climate summit in Dubai, known as COP28, in December. The conference is due to give a first “stocktake” of climate action under the Paris pact.

Oliver Geden, an IPCC author at the German Institute for International and Security Affairs, said the IPCC report, for the first time, includes an estimate that global greenhouse gas emissions will have to fall 60% from 2019 levels by 2035 to safeguard the 1.5°C goal.

The year 2035 is the next horizon for national climate action plans, which mostly now stretch to 2030.

A previous IPCC report already set a benchmark for cuts in greenhouse gas emissions by 2030, of 43% below 2019 levels, to have a 50% chance of keeping warming to 1.5°C.

But such cuts are, so far, theoretical.

Global energy-related carbon emissions rose almost 1% in 2022 to a new record high, according to the International Energy Agency. And temperatures are currently on track to reach 2.7°C by 2100 with current policies, according to a Climate Action Tracker compiled by scientists.

Delegates at the Interlaken talks said Saudi Arabia and other oil producers had resisted calls by vulnerable nations, including small island states at risk of rising seas, for more explicit language in the report summary calling for a phase-out of coal, oil and gas in favor of renewable energy.

But it still includes strong points in favor of renewables.

In one graphic, for instance, solar and wind top a list of affordable options for curbing emissions, with nuclear and carbon capture and storage of emissions from fossil fuels at the bottom. Unit costs of solar energy have tumbled by 85%, and wind by 55%, from 2010-19, it says.

The report also highlights the inequity of the world’s planet-heating emissions, noting that the 10% of households with the highest per-capita emissions contribute 34–45% of global emissions linked to consumption, while the bottom half are responsible for only 13-15% of the total.

Madeleine Diouf Sarr, chair of the 46-strong group of least developed countries, called for rapid action on a new fund to help poor nations cope with climate-driven loss and damage.

This month, Cyclone Freddy killed more than 500 people in Malawi, Mozambique and Madagascar. Last year, floods in Pakistan caused more than 1,700 deaths and economic losses of more than $30 billion.

“We are not doing enough, and the poor and vulnerable are bearing the brunt of our collective failure to act,” said Ms. Diouf Sarr. — Thomson Reuters Foundation

Putin meets ‘dear’ friend Xi in Kremlin

RUSSIAN President Vladimir Putin shakes hands with Chinese President Xi Jinping during a meeting at the Kremlin in Moscow, Russia, March 20, 2023. — POOL VIA REUTERS

VLADIMIR Putin and his “dear friend” Chinese leader Xi Jinping planned more talks on Tuesday after a Kremlin dinner where the isolated Russian president curried favor with his most powerful ally in the face of Western opposition to the war in Ukraine.

Coming just days after an international court accused Mr. Putin of war crimes, Washington denounced Mr. Xi’s visit, saying it showed Beijing was providing Moscow with “diplomatic cover” to commit more crimes.

Making his first trip abroad since obtaining an unprecedented third term earlier this month, Mr. Xi has been trying to portray Beijing as a potential peacemaker in Ukraine, even as he deepens economic ties with his closest ally.

Mr. Putin and Mr. Xi greeted one another as “dear friend” when they met in the Kremlin on Monday, and Russian state news agencies later reported they held informal talks for nearly 4-1/2 hours, with more official talks scheduled for Tuesday.

In televised comments, Mr. Putin told Mr. Xi he viewed China’s proposals for resolution of the Ukraine conflict with respect. Mr. Xi, for his part, praised Mr. Putin and predicted Russians would re-elect him next year. 

Moscow has been publicly promoting plans for a visit by Mr. Xi for months. But the timing gave the Chinese leader’s personal support new meaning, after the International Criminal Court (ICC) issued an arrest warrant on Friday accusing Mr. Putin of war crimes for deporting children from Ukraine.

Denying the charges, Moscow said it has taken in orphans to protect them, and it opened a criminal case against the ICC’s prosecutor and judges. Beijing said the warrant reflected double standards.

“That President Xi is traveling to Russia days after the International Criminal Court issued an arrest warrant for President Putin suggests that China feels no responsibility to hold the Kremlin accountable for the atrocities committed in Ukraine,” US Secretary of State Antony Blinken said.

“Instead of even condemning them, it would rather provide diplomatic cover for Russia to continue to commit those grave crimes.”

White House spokesman John Kirby said Mr. Xi should use his influence to press Mr. Putin to withdraw troops from Ukraine, and Washington was concerned that Beijing might instead call for a ceasefire that would let Russian troops stay.

China has released a proposal to solve the Ukraine crisis, largely dismissed in the West as a ploy to buy Mr. Putin time to regroup his forces and solidify his grip on occupied land.

Foreign policy analysts said while Mr. Putin would be looking for strong support from Mr. Xi over Ukraine, they doubted his Moscow visit would result in any military backing.

Washington has said in recent weeks it fears China might arm Russia, which Beijing has denied.

Yu Jie, senior research fellow, Asia-Pacific Programme, at Chatham House in London, said Mr. Xi’s entourage does not include any senior members from the People’s Liberation Army.

“This may send a clear message that Beijing is unlikely to offer any direct military support to Moscow despite what some pundits have asserted,” she said.

Kyiv, which says the war cannot end until Russia pulls out its troops, cautiously welcomed Beijing’s peace proposal when it was unveiled last month.

Ukrainian President Volodymyr Zelensky has said that China arming Russia could lead to World War III and has called for Mr. Xi to speak to him.

JAPANESE PM HEADS TO KYIV
While Mr. Putin hosted the Chinese president, the broadcaster NHK showed Japan’s Prime Minister Fumio Kishida boarding a train at a Polish border town bound for Kyiv, to deliver a message of solidarity and support for Ukraine.

Mr. Kishida was set to meet with President Zelensky, Japan’s foreign ministry said on Tuesday.

The invasion, which Russia calls a special military operation, has laid waste to Ukrainian cities, caused millions of people to flee, killed tens of thousands of civilians.

Several European Union countries agreed in Brussels on Monday to jointly buy 1 million rounds of 155 mm artillery shells for Ukraine. Both sides fire thousands of rounds per day in what has become a war of attrition.

The United States announced its latest military aid package, worth $350 million, including more ammunition for HIMARS rocket launchers, howitzers and Bradley Infantry Fighting Vehicles, plus HARM missiles, anti-tank weapons and river boats.

Fierce fighting continued Tuesday in the eastern Ukrainian town of Bakhmut, where Ukrainian forces have held out since last summer in the longest and bloodiest battle of the war.

However, Ukrainian military analyst Oleh Zhdanov said on YouTube that there had been fewer attacks along the frontline than usual in the past 24 hours.

“This could be linked to the visit to Moscow by the Chinese leader. Why? Because Putin is hardly likely to put aggression on display on the front lines, particularly as China has spoken in favor of a ceasefire and of an end to the war. So this is likely to continue throughout his two-day visit.”

Moscow, which has not scored a major victory since August, has launched a massive winter offensive involving hundreds of thousands of freshly called-up reservists and convicts recruited from jails.

“They have lost the initiative practically throughout the length of the front line,” Ukrainian military expert Oleksandr Kovalenko said on Ukrainian NV Radio. — Reuters

Switzerland’s secretive Credit Suisse rescue rocks global financial markets

CREDIT SUISSE — COMMONS.WIKIMEDIA.ORG

ZURICH  — Days before a hastily convened press conference late on Sunday that would make the world’s front pages, Switzerland’s political elite were secretly preparing a move that would jolt the globe.

While the nation’s central bank and financial regulator publicly declared that Credit Suisse was sound, behind closed doors the race was on to rescue the nation’s second-biggest bank.

The chain of events, led to the erasure of one of Switzerland’s flagships, a merger backed by 260 billion Swiss francs ($280 billion) of state funds and a move that would upend global finance: favoring the bank’s shareholders to the detriment of bond investors.

The events that unfolded in the landlocked nation — long a bastion of political neutrality that has secured its standing as a safe-haven favorite for wealthy elites — go against one of the key lessons of the 2008 financial crisis. The rescue concentrates even greater risks into one banking behemoth, UBS Group AG.

What is more, making bondholders cushion the blow to stock investors from the UBS-Credit Suisse tie-up rattled lenders, pushing up their borrowing costs in a threat to world economic growth.

The Swiss National Bank declined to comment while the finance ministry did not respond to a request for comment.

Battered by years of scandals and losses, Credit Suisse for months had been battling a crisis of confidence of its own making. In a matter of days its demise was sealed.

Soon after news broke on March 12 that the United States would step in to guarantee all the deposits of two mid-sized lenders struggling to keep up with demands for cash, the spotlight was on Credit Suisse and how it would maintain depositor confidence.

Customers had already pulled $110 billion from the Zurich-based bank in the last three months of 2022, outflows that it was fighting to reverse.

A rainmaker who brokered a number of European bank rescues during the financial crisis, speaking on condition of anonymity, told Reuters that after seeing the US banking collapses there was little doubt UBS would be called upon to shore up Credit Suisse.

The banker on March 13 rang up UBS warning the world’s biggest wealth manager that it should prepare to receive a call from Swiss authorities.

By Wednesday, two days later, Credit Suisse was swept up in a full-blown crisis. Comments by the chair of Saudi National Bank, Ammar Al Khudairy, who said that he could not invest further in the Swiss bank sent Credit Suisse shares into a tailspin.

It mattered little that Credit Suisse’s biggest investor also reiterated confidence in the lender. “They’re a globally systemically important bank so … monitored on a daily basis,” he told Reuters. “There’s no surprises like you would have in a middle-sized bank in the US. It’s a completely different ecosystem.”

Significant deposit outflows followed, the source who would go on to advise UBS on the merger told Reuters, declining to put a number on them.

In banking center Zurich and Bern, the Alpine state’s capital, pressure was building. Yet as the discussions to salvage Credit Suisse got underway, Swiss regulators FINMA and the Swiss National Bank said that “the problems of certain banks in the USA do not pose a direct risk of contagion for the Swiss financial markets”, conceding, however, that they would fund the bank with unlimited access to funding.

Credit Suisse too was conveying stability. The bank told Reuters on Thursday that its average liquidity coverage ratio, a key measure of how much cash-like assets the bank has, did not change between March 8 and March 14, despite the global banking crisis.

Swiss Finance Minister Karin Keller-Sutter, a former translator and teacher just months on the job, told the Sunday media conference that additional support for Credit Suisse had been agreed but held secret for fear of panicking people with a succession of emergency announcements.

She said she was in close contact with US Treasury Secretary Janet Yellen and British finance minister Jeremy Hunt. Both countries have large Credit Suisse subsidiaries employing thousands.

There was far less communication with the European Central Bank in Frankfurt, said one person familiar with the matter. Credit Suisse’s arms in Luxembourg, Spain and Germany were far smaller.

European regulators were, in particular, worried that the Swiss could impose losses on bondholders — a radical step that they did take, as the costs of a rescue spiraled for taxpayers.

“They did this on their own,” said the person, asking not to be named, describing the outcome as a “big surprise”.

A spokesperson for FINMA said that although it laid emphasis on Britain and the US because of the scale of Credit Suisse’s business in those countries, it had also informed European authorities.

Not everyone, however, was kept in the dark.

Saudi investors, with roughly a 10% stake in the bank, put pressure on the Swiss, warning that they could take legal action if they did not recover some of their ill-fated investment, said another person with knowledge of the matter.

Saudi National Bank did not immediately respond to a request for a comment

“The money had to come from somewhere,” said one of the officials involved in the negotiations.

The Credit Suisse board, interested in preserving some unity in an increasingly fractious setting, stood behind them, and argued for a payout to shareholders, said the person.

Regulators too wanted to avoid a wipeout for shareholders that would have resulted in the winding up of the bank, potentially a bigger headache for the nation and a loss of face just hours after standing by Credit Suisse.

In the end, the Swiss agreed, choosing to wipe out 16 billion of francs of bonds, compensating shareholders with 3 billion francs and turning a key principle of bank funding on its head — namely, that shareholders rather than bondholders take the first hit from a bank failure.

It marks an ignominious end for an institution founded by Alfred Escher, a Swiss magnate affectionately dubbed King Alfred I, who helped build the country’s railways. Credit Suisse banks many Swiss companies and citizens — including finance minister Ms. Keller-Sutter.

On Sunday, as a panel of Swiss officials and executives announced the deal, they were unrepentant.

“This is no bailout,” Ms. Keller-Sutter told journalists. Thomas Jordan, the central bank chief, defended the package, as necessary to counter any wider shock.

“The taxpayer in this scenario has less risk,” said Ms. Keller-Sutter. “The bankruptcy would have been the highest risk because the cost to the Swiss economy would have been huge.”

Still, markets are reeling from the extraordinary turn of events.

“When you are a bank for billionaires, deposits can fly away very quickly,” said one of the people involved. “You can die in three days.” — Reuters

Credit Suisse memorabilia up for grabs in online shops after merger

REUTERS

ZURICH — Within hours of its state-backed takeover by UBS Group being announced, memorabilia bearing lender Credit Suisse’s name and logo was being put up for sale in Switzerland, marking the end of an era.

Dozens of bars of gold, stamped with the name of the issuer — the 167-year-old Credit Suisse — were uploaded to the country’s most popular online marketplaces, Ricardo.ch and tutti.ch.

Blue and red ski hats bearing the ‘CS’ letters, which were the height of fashion in the 1970s, were getting bids of close to 200 Swiss francs ($216).

Other branded merch up for sale included stamps, old letters, and sports bags.

With it still unknown whether the Credit Suisse brand will be continued, the sellers are seeking to attract those looking to snap up a piece of Swiss financial history.

Credit Suisse is expected to remain an independent brand until the merger is complete, at which point UBS will decide whether to pull the plug on the separate Credit Suisse identity.

Corporate swag from recently failed Silicon Valley Bank is also proving popular online, as is merchandise linked to Lehman Brothers, which filed for bankruptcy at the height of the 2008 financial crisis. — Reuters

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