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Marcos names new BIR chief

Philippine President-elect Ferdinand R. Marcos, Jr. has tapped Bangko Sentral ng Pilipinas (BSP) Assistant Governor and former Bureau of Internal Revenue (BIR) Deputy Commissioner Lilia C. Guillermo to head the tax collection agency.

“Her strong background in IT (information technology) and her almost four decades of service at the BIR complements the President-elect’s objective of boosting the country’s revenue through efficient tax collection,” incoming press secretary Rose Beatrix “Trixie” Cruz-Angeles said in a statement.

Ms. Guillermo heads the BSP Technology and Digital Innovation Office, and is in charge of managing the BSP’s IT Modernization Roadmap.

She was also credited with implementing the Philippines tax computerization project at the BIR and Bureau of Customs (BoC), Ms. Cruz-Angeles said.

Tax lawyer Romeo Lumagui Jr. has been chosen as deputy commissioner for operations at the BIR, Ms. Cruz-Angeles said.

Mr. Lumagui, a tax lawyer, had also served as the regional investigation chief of Revenue Region No. 7B East NCR.

In December, the tax agency had sent a written demand to the Marcos family to settle their unpaid estate tax, which has ballooned to more than P200 billion due to interest.
The Marcos camp has not answered questions regarding the issue.

Mr. Marcos last month said the economy will languish if the government’s main revenue collection agencies, such as the BIR and the BoC, would not be fixed.

“It’s very, very important and we have to at the very least reduce the corrosive influence of corruption in government as a general rule,” he said.

Meanwhile, Mr. Marcos has picked Ricardo de Leon, a former police official, as head of the National Intelligence Agency (NICA).

Mr. de Leon currently heads the Philippine Public Safety College, an educational institution for all police, fire, and jail personnel. – Kyle Aristophere T. Atienza

BSP sees wider BoP, current account deficits this year on weaker global outlook

PIXABAY

THE BANGKO SENTRAL ng Pilipinas (BSP) expects the country to post a wider balance of payments (BoP) deficit this year due to a weaker global growth outlook that could affect trade and capital flows.

The central bank on Friday announced its revised BoP projections for 2022 and 2023 approved during the Monetary Board’s June 16 meeting.

The BoP gives a glimpse of the country’s transactions with the rest of the world at a given time. A deficit shows more funds exited the country than what went in, while a surplus means more money entered the economy.

“The emerging BoP outlook for 2022 and 2023 remains quite circumspect in view of the recent buildup in external risks. Of note is the downgraded global growth outlook following the escalation of the Ukraine-Russia conflict and its international ramifications, most notably the increase in food and fuel prices. The anticipated slowdown of China’s economy could also put pressure on trade prospects,” the BSP said.

“Meanwhile, capital flows could be particularly volatile following the abrupt monetary policy normalization in the US and in other major economies,” it added.

The country’s BoP is now expected to yield a deficit of $6.3 billion this year or equivalent to -1.5% of gross domestic product (GDP), higher than the previous projection of a $4.3-billion gap (-1% of GDP) announced in March.

Latest BSP data showed the country’s BoP stood at a $79-million surplus in the January-April period, a turnaround from the $231-million deficit in the same four months of 2021.

The central bank said it expects a bigger BoP gap this year amid a projected widening of the current account deficit to $19.1 billion (-4.6% of GDP) from the earlier forecast of $16.3 billion (-3.8% of GDP).

This is after it raised its growth projections for imports of goods and services to 18% and 13%, respectively, from 15% and 12% previously amid the recovery of the Philippine economy. Growth forecasts for goods and services exports were maintained at 7% and 11%, respectively.

The BSP maintained its growth forecasts for business process outsourcing (BPO) and travel receipts at 8% and 100%, respectively.

Meanwhile, the BSP maintained its projection for the growth in overseas Filipino workers’ cash remittances at 4% amid rising deployment and expanded channels for sending funds. Cash remittances increased by 2.7% year-on-year to $10.167 billion in the first four months of the year.

The current account deficit was at $4.8 billion in the first quarter, higher than the $32-billion gap seen the year prior, amid a wider trade in goods deficit and the slight decline in net services receipts.

As for the financial account, it is expected to register net inflows of $11.8 billion, higher than the previous projection of $10.9 billion, as the central bank sees a sustained uptrend in foreign direct and portfolio investments.

The central bank expects foreign direct investments (FDI) to end the year at a net inflow of $11 billion, steady from the March outlook, while foreign portfolio investments (FPI) or hot money is now expected to post at $4.5-billion net inflow, higher than the $4 billion the BSP projected in March “fueled in part by the planned issuances of initial public offerings.”

The financial account registered net inflows of $4.9 billion in the first quarter of 2022, a reversal from the $4.1 billion net outflows in the same period last year, amid lower FPI outflows and better inflows from other investment accounts that tempered a decline in net FDI inflows.

Latest BSP data showed total FDI net inflows rose by 2% to $2.43 billion in the first quarter from $2.39 billion during the same period in 2021.

Meanwhile, from January to April, BSP-registered FPIs yielded net inflows of $1.34 billion, a reversal from the $857.44-million net outflow in the same period last year.

Lastly, the country is now expected to end the year with gross international reserves (GIR) of $105 billion, equivalent to eight months of import cover, slightly lower than the previous forecast of $108 billion (8.4 months), “reflecting latest trends as well as the expected rationalization of the national government’s foreign borrowings amid fiscal consolidation efforts.”

GIR was at $103.53 billion as of end-May.

2023 FORECASTS

For 2023, the BSP maintained its forecast of a $2.6-billion BoP deficit, equivalent to -0.6% of GDP, “hinged mainly on expectations of higher inflows in the financial account supported by improved business and consumer sentiment, stronger domestic demand, and continued implementation of business-friendly legislative reforms.”

This is despite its projection of a wider current account deficit of $20.5 billion (-4.4% of GDP) from $17.1 billion (-3.7% of GDP) in March as the country’s trade gap is expected to continue widening.

Meanwhile, the growth outlook for cash remittances was maintained at 4% as base effects are expected to fade and with the recovery of host economies expected to stabilize to pre-pandemic levels, which could boost deployment.

The central bank also kept its growth projections for BPO and travel receipts at 5% and 150%, respectively.

On the other hand, the financial account is expected to register higher net inflows of $16.8 billion in 2023 from $13.4 billion previously as net FDI inflows are now seen at reaching $12 billion from $11.8 billion, while the net FPI inflow projection was maintained at $6.7 billion.

The BSP said the financial account will be boosted by expectations of the Philippines’ sustained growth momentum amid infrastructure improvements and investment-friendly reforms.

Lastly, the central bank lowered its 2023 GIR projection to $106 billion from $109 billion in March on expectations of foreign exchange flows.

“There is also scope to maintain sufficient reserves against possible adverse market volatilities as policy normalizations continue into 2023,” the BSP said.

The central bank noted that growth prospects for 2023 remain “soft” as risks to the external outlook are likely to persist.

“The challenge of dealing with the COVID-19 crisis legacies, the Ukraine-Russia war, as well as global financial tightening continue to dampen prospects for the country’s external sector next year,” the BSP said.

“The BSP will continue to monitor closely emerging external sector developments and risks and how these may impact the BSP’s fulfillment of its price and financial stability objectives,” it added. — K.B. Ta-asan

Long-term thinking, infrastructure to drive growth of digital economy — IDC

STOCK PHOTO | Image by Igor Ovsyannykov from Pixabay

Enterprises have to think long-term to drive the digital economy, according to Sudev Bangah, managing director of IDC (International Data Corporation) ASEAN, a market intelligence provider to technology vendors and investors.

“If enterprises are looking long-term, then growth in the digital economy will also be long-term,” said Mr. Bangah in a June 15 media briefing.

Based on IDC’s 2022 Future Enterprise Resiliency Survey, more than half (51.90%) of digital initiatives among ASEAN organizations are tied to enterprise strategy, but with a short-term focus.

“While they talk about resiliency and agility — they are also looking at returns in business today,” he said. “We hope this will change, because this would be the driver into the digital economy.”

In the APEC (Asia-Pacific Economic Cooperation), of which the Philippines is a member, small- and medium-sized enterprises (SMEs) account for over 97% of all businesses, and up to 60% of the share of the Gross Domestic Product (GDP) of APEC economies.

IT (information technology) spending among ASEAN SMEs is anticipated to grow at a 7.4% compound annual growth rate (CAGR) through 2025, per IDC. IT spending in the ASEAN, meanwhile, is expected to grow at 6.3% CAGR through 2025.

Mr. Bangah said that 86% of ASEAN SMEs have accelerated their digitalization efforts because of the coronavirus disease 2019 (COVID-19) pandemic.

“We find this very encouraging in terms of the digital economy, because they’re an integral cog of it,” he added.

The Philippines aims to improve the country’s readiness in the digital economy through the CHIP (Connect, Harness, Innovate, and Protect) Framework.

CHIP focuses on improving digital infrastructure and connecting; initiating capacity building to upskill Filipinos; undertaking key modernization projects; and mitigating digital risks and threats on cybersecurity and privacy.

According to Mr. Bangah, e-government platforms need to have strong key performance indicators from productivity and user standpoints, such as cutting down applications by three days, or reducing registration time by 70%.

He pointed out that even if a platform has 24 million users, that number doesn’t necessarily translate to how many are trained to use the digital tools.

And while digitalization is a focus in Southeast Asia, he said that governments are still contending with “other problems.”

“In Indonesia and the Philippines, which are huge geographical places that need a lot of infrastructure development, the fundamentals are still being built,” Mr. Bangah said. “Why is the budget for connectivity so low? That’s because the government has other challenges.” — Patricia B. Mirasol

Philippines sees wider current account deficits as global risks build 

REUTERS

The Philippine central bank said on Friday it expects the country’s current account (C/A)  balance to register wider deficits in 2022 and 2023 than previously projected, taking into account the challenges facing the global economy.

The Bangko Sentral ng Pilipinas (BSP) has revised its balance of payments (BoP) projections, with the current account deficit now seen hitting $19.1 billion, or 4.6% of the gross domestic product in 2022.

That compares with the March forecast of a $16.3 billion deficit for this year, or 3.8% of gross domestic product (GDP). 

The BSP said in a statement the revisions to BOP projections took into account the build-up in external risks, ongoing global monetary policy tightening and lingering coronavirus disease 2019 (COVID-19) challenges.

In particular, the BSP cited the downgraded global growth outlook amid the Ukraine-Russia conflict and its impact on commodity prices, the slowdown in China, and the effect on capital flows on central bank policy tightening.

For 2023, the current account deficit is expected to reach $20.5 billion, or 4.4% of GDP, wider than the previous projection of $17.1 billion, or 3.7% of GDP.

With the wider current-account deficit forecast for 2022, the Philippines’ BoP is expected to yield a deficit of $6.3 billion this year (1.5% of GDP) versus the March projection of $4.3 billion (1.0% of GDP).

The BoP deficit forecast for 2023 has been kept at $2.6 billion (0.6% of GDP).

Money sent by Filipinos abroad, a crucial financial flow supporting the Philippine economy, is still projected to increase 4% this year and in 2023, the BSP said, citing base effects that are expected to fade and the recovery of partner economies to pre-pandemic levels. 

The country’s gross international reserves, however, are forecast to hit $105 billion by end-2022 and $106 billion by end-2023, lower than the March projections of $108 billion and $109 billion, respectively. — Reuters

Best gifts to spoil your super dads

Father’s Day is right around the corner! Surely, you ought to think of something that will put a smile on your old man’s face. Whether it is simple or grand, the thought of celebrating with the important men in your life will mean the world to them. Surprise your daddy, dad, papa, tatay, or itay this Father’s Day and get him the best present that will blow his socks off with these smart gift ideas from Wilcon Depot:

Power Tools

Nobody appreciates tools as gifts more than men. They find satisfaction in fixing and building home projects using the tools they own. Complete your grandpa or daddy’s tool collection with these high-quality power tools from Hills. These tools help divide work time in half, provide quality precision and efficiency, and guarantee better safety with its modern features and ergonomic handles for better grip.

Tool Storage and Organizers

No matter the age, profession, or hobby, tools are one of men’s best friends. They are fond of collecting essential tools that can be used for fixing the house, appliances, or even the car. Get them something to keep their tools organized with Truper toolboxes. These come in different sizes and are built with compartments and dividers to be more efficient to use.Of course, a handy storage is also a must to keep things in one place. Ezweep carries a foldable trolley and wheels with built-in handles for convenient keeping and better portability.

Grillers 

If your dad loves backyard cookouts more than anyone else at home, get the right grill for him. Suncrust offers a variety of burner gas and charcoal grills ranging from 3 to 6 burners that will allow him to cook simultaneously. He can also enjoy his top-notch griller outdoors hassle-free since it comes with a storage and wheels making it easier to transport. 

Office Chairs

Aside from being builder daddy, men also love having their own private desk or space. It gives them room to relax and have time for themselves. Get your busy father a nice, cozy office chair from Heim. These chairs are designed with ergonomic shapes to fit the back perfectly.

Office Tables

Another perfect gift for busy, working dads are office tables. It is a practical furniture that can be greatly used on a daily basis. Find the perfect office table with built-in cabinets from Heim. These are designed with a sleek wood finish that can suit his home office’s visual.

Wall Decors

Wall decors are one of the most universal presents anyone can really appreciate, even your strong, manly dads! Bring life to your father’s personal space with Heim decors. You can opt for stylish clocks, chic paintings, wall art, and many more!

Shelves

These shelves from Heim can help keep your dad’s working space clutter-free and organized. He can also use this to display some of his favorite books or prized collections and allow him to enjoy his space even more.

Shower with Heater

Get your busy dad the relaxation he deserves with Ariston water heaters with built-in showerhead. This will provide him the hot, calming shower he needs after a long tiring day at work.

Portable Air Purifier

If your dad travels a lot, this gift is the one for him! This portable air purifier will help keep his personal space fresh and clean. This air purifier emits negative ions that can protect him from airborne viruses, pollutants, and bacteria.

Coffee makers

Coffee is always a must, especially if your dad is going to have a busy day. Serve him a freshly made coffee with a portable coffee maker. This press-on device will surely offer him a good head start in the morning while allowing him to go to work on time!

Sofa

If there’s one thing that every dad wants no matter the day and time, it’s a nice, cozy sofa where he can sit, relax, and even watch his favorite TV shows. Find the perfect sofa for your dad from Nobizzi. They offer a wide variety of sofa ranging in different sizes, designs, and level of comfortability, perfect for your dad’s me-time.

Automotive Accessories and Car care

When it comes to car styling and maintenance, dads are definitely a reliable go-to person. They know from the most basic information such as good cleaning dusters to the most technical ones like keeping cars in great shape and sound. Get your dad some top-quality handy tools and cleaners from Elite Auto Care. They offer a great selection of car accessories and tools, ideal for the car care he deserves.

Celebrate Father’s Day with your awesome dads and get the perfect present for him, exclusively at Wilcon Depot.

Wilcon E-GC

If you’re looking for a great way to spend Father’s Day with your favorite Man, give him an excellent shopping experience with the Wilcon Electronic Gift Card (EGC). It comes in two denominations, P500 and P1,000, allowing you two a fun bonding time while shopping!

Surprise your super dad this Father’s Day and get them a thoughtful gift that he will surely appreciate from Wilcon Depot. Shop now for your home improvement and building needs at any Wilcon Depot and Wilcon Home Essentials store nationwide. Visit any of their 76 stores nationwide and explore the limitless product selections that Wilcon offers. 

Wilcon Depot has been serving the Filipino homeowners and builders nationwide with high-quality home building and improvement needs and excellent customer experience over the years now. Celebrate 45 years of building big ideas with Wilcon Depot and explore their limitless product selections ranging from Tiles, Sanitarywares, Plumbing, Furniture, Home Interior, Building Materials, Hardware, Electrical, Appliances, and other DIY items.

Adhering to health and safety protocols to fight against COVID-19, Wilcon continuously implements necessary precautionary measures inside all of its stores to ensure their employees and valued customers’ safety, health, and well-being a priority.

You can also browse their Digital Catalogue and shop conveniently while at home through your personal shopper with the Browse, Call, and Collect / Deliver service. BROWSE the items you want to purchase at shop.wilcon.com.ph and www.wilcon.com.ph, CALL/Viber/text the Wilcon branch of your choice, and schedule a COLLECT/DELIVER. For the list of participating stores with their pick-up and delivery contact details, click this link: www.wilcon.com.ph/content/328-bcc-branches.

Another shopping alternative is the Wilcon Virtual Tour. An online shopping option wherein customers can contact the nearest Wilcon store via Facebook Messenger App. Customers can contact the nearest stores, and the Wilcon team will take you on a virtual tour where you can explore the available products inside their physical stores.

Wilcon also provides contactless payment options to its customers like bank transfers, GCash, PayMaya, InstaPay, PesoNet, WeChat, and Alipay for customers’ convenience.

For more information about Wilcon, you can log on to www.wilcon.com.ph or follow their social media accounts on Facebook and Instagram, and subscribe and connect with them on Viber Community, LinkedIn, and YouTube.

 

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Asia Pacific ‘strong target’ for NFTs, Web 3.0 platforms — ad exec 

PIXABAY

Web 3.0, the “upgraded” Internet characterized by decentralization and the increased use of artificial intelligence (AI), will “change the contact points between brands and customers,” according to an advertising and public relations executive. 

“We won’t have a meaningful space [with our clients] if we don’t enter into these systems,” said Alberto Canteli, Havas Group chief executive officer and chairman for the Nordics, CEE (Central and Eastern Europe), Middle East, Southeast Asia, Korea, and Japan. “My personal bet is that, in the coming three to five years, Web 3.0 will make us go through the strongest revolution we have ever seen.”  

Fields such as robotics and AI, Mr. Canteli told BusinessWorld in a Zoom call, will move more interactions into the virtual world. Members of Mr. Canteli’s staff are obliged to have Oculus virtual reality headsets to help them understand how Web 3.0 applications work.  

Havas Group, a global communications group, launched Metaverse in Havas, a unit for brands that want to enter the metaverse, early this year; and Havas Blockchain, which offers training and coaching for firms operating in the blockchain ecosystem, in 2018. 

The Group’s clients typically want to mint their own non-fungible tokens (NFTs), or launch a new platform. 

The Asia Pacific region is “a very strong target” for growth, according to Mr. Canteli.

“We have been winning very important accounts in Korea, the Philippines, and Singapore,” he said, declining to give specifics. “We are in a strong business momentum, and are onboarding big, important, new accounts.”  

According to Mr. Canteli, talent retention is the biggest challenge amid digital transformation. 

“Companies have to conquer the hearts of young people” so they will want to stay, he said. “Salary is an option, but it’s not the key one,” Mr. Canteli added. “It’s [also about] being a company that offers flexibility, continuous training, gender parity, respect.” — Patricia B. Mirasol

US envoy to China expects ‘zero COVID’ policy to persist into 2023

REUTERS

WASHINGTON — The United States’ ambassador to China, Nicholas Burns, said on Thursday he expects Beijing’s “zero COVID” policy to persist into early 2023, and that US businesses were reluctant to invest in the country until restrictions ease. 

The re-emergence of infections in China’s capital Beijing has raised new concerns about the outlook for the world’s second largest economy, which had recently emerged from a long lockdown that shook global supply chains in its most populous city and commercial hub, Shanghai. 

“I think we’re going to have to live with this for a long time,” Mr. Burns told an online Brookings Institution event. 

“My own assumption is that we’ll see the continuation of ‘zero COVID’ probably into the beginning months of 2023. That’s what the Chinese government is signaling,” Mr. Burns said, referring to China’s policy of seeking to stamp out each cluster of new cases, often with strict lockdowns and mass testing. 

“I think there’s a hesitancy to invest in future obligations until they can see the end of this,” Mr. Burns said of US companies. 

Analysts say the Chinese government’s official GDP (gross domestic product) growth target of around 5.5% for this year will be hard to achieve without doing away with the strategy. 

Mr. Burns criticized Beijing for censoring oChinese social media Secretary of State Antony Blinken’s May speech on US policy toward China, in which he said Washington expected Beijing to adhere to international rules. 

“We put the speech on Weibo, and WeChat. And it was censored in about two and a half hours. Just taken away,” Mr. Burns said, adding that the Embassy reposted it days later and it was again removed. 

Mr. Burns also said some assessments within China’s government that the United States is in decline and is therefore becoming more aggressive toward China was not accurate and an “excuse.” 

“I think what’s changed is the newly aggressive behavior of the Chinese government … over the last five to 10 years. And you’ve seen a counter reaction to that,” he said. — Michael Martina/Reuters

The M pays tribute to cartoonist and National Artist Larry Alcala

At the height of his career, Larry Alcala was part of every Filipino’s life. Picture a day in the life in the Philippines: the bright pops of color brought on by passing jeeps and tricycles on Manila’s busy streets, the chitter-chatter of neighborhood gossips outside their houses, children climbing trees and playing wherever they can, and the warmth of the tropical sun shining down on all of this. Of all the Filipino artists who worked with these subjects, perhaps none was more prodigious or influential for generations to come than Mr. Alcala. The common and endearing subjects and scenes portrayed by Mr. Alcala is a fitting celebration and offering for National Heritage Month, with its theme “PAMANANG LOKAL: Binhi ng Kulturang Pilipino.”

Larry Alcala: Slices of Life, Wit, and Humor opened at the SMX Convention Center Aura in Bonifacio Global City, Taguig last May 31. The exhibition featured a collection of archival reproduction of Mr. Alcala’s works alongside works in drawing, print, and digital media of selected artists influenced by Mr. Alcala, including members of the organization Ang Illustrador ng Kabataan (INK), which thrives to this day. The exhibition received curatorial guidance from visual communications educator and award-winning illustrator Professor Ruben “Totet” de Jesus of the University of the Philippines Diliman College of Fine Arts.

In the 2018 essay for the occasion of Mr. Alcala’s conferment to the Order of National Artists of the Philippines, Mr. de Jesus wrote that “Filipinos from all levels of society can appreciate Alcala’s art. His galleries are the dailies. There is mastery in his simplicity. There are messages in his images. Most of all, every Filipino is part of his family.”

The exhibition at the SMX Aura was complemented by the M’s education and public programs from June to July: an M Collab participatory project, inviting 18- to 25-year-old participants to share “à la Alcala” digital art contributions online. M Art Inspires (online conversation) featured insights and stories from Prof. de Jesus, visual artist-illustrator Aldy Aguirre, and writer-speaker Carl Javier. At the end of June, we invite young artists to join our M Online Studio Studies with a storytelling through comics and illustration workshop with visual artist-cartoonist Manix Abrera.

Larry Alcala: Slices of Life, Wit, and Humor was presented by the Metropolitan Museum of Manila and Filipino Heritage Festival, Inc., with support from the National Commission for Culture and the Arts, in partnership with SM and venue partner SMX Convention Center Aura. The exhibition was also made possible with the support from the following partners: BusinessWorld, DDB Group Philippines, Security Bank, and The Manila Times.

For more information, e-mail us at info@metmuseum.ph.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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In call with Twitter staff, Elon Musk muses on space aliens, company’s future

Elon Musk addressed Twitter employees for the first time on Thursday, expressing his view that Twitter would need to cut its headcount, but offering few other new details about his $44 billion planned takeover of the social media company.

Mr. Musk appeared via video call 10 minutes late to what turned out to be a freewheeling question and answer session moderated by a Twitter executive, in which Mr. Musk mused about the existence of aliens and other space civilizations and his view that Twitter should help “civilization and consciousness.”

The Tesla chief executive, who is also chief executive officer of rocket company SpaceX, told Twitter staff he wants to raise the service’s user numbers from 229 million to at least 1 billion people and said advertising would remain important for the company, despite previously saying he believes Twitter should not serve ads, according to audio of the meeting heard by Reuters.

“I think advertising is very important for Twitter,” Mr. Musk said. “I’m not against advertising. I would probably talk to the advertisers and say, like, ‘hey, let’s just make sure the ads are as entertaining as possible.’”

Mr. Musk, who was expected to provide assurance to Twitter employees during his first meeting, didn’t offer an update on the deal closing.

He reiterated he was still trying to learn more about bot and spam accounts on Twitter, which he called his biggest concern.

In response to a question about whether he expected layoffs, Mr. Musk said there needed to be “some rationalization of headcount and expenses.”

“Right now, the costs exceed the revenue,” he said, adding “anyone who’s … a significant contributor should have nothing to worry about.”

Twitter employees took to an internal Slack channel in droves during the session, posting memes and complaining that Mr. Musk was not providing useful answers on his vision for the business and employee compensation.

They also demanded on Slack that the moderator press Mr. Musk on his views about remote work, as Twitter currently allows employees relatively free reign to work remotely or in the office.

Mr. Musk said he believed Twitter staff should lean toward working in an office, but expressed willingness to make some exceptions. The bias should be “strongly towards working in person, but if somebody is exceptional, then remote work can be okay,” he said.

The impending takeover of Twitter has been met with widespread skepticism and concern among the San Francisco-based company’s employees, some of whom have worried Mr. Musk will relax rules on certain content.

The billionaire told Twitter staff he believed users should be allowed to say “pretty outrageous things” on the site as long as the content is not illegal.

Twitter shares were down 1.5% and Tesla shares slumped more than 9% in afternoon trading.

Mr. Musk dialed into the call wearing a white shirt and appeared to be sitting in a kitchen, according to a source who watched the call.

When he turned off his video at the end of the Q&A, his avatar appeared to be two hands in the shape of the number 69, an apparent reference to a sex position, the source said. — Sheila Dang/Reuters

Meta, Google, Twitter vow to fight fake news better as EU gets tougher

STOCK PHOTO | Image by terimakasih0 from Pixabay

BRUSSELS — Meta, Alphabet unit Google, Twitter, and Microsoft agreed on Thursday to take a tougher line against disinformation under an updated EU code of practice that could hit them with hefty fines if they fail to do so.

More than 30 signatories including advertising bodies have committed to the updated Code of Practice on disinformation, the European Commission said.

The signatories agree to do more to tackle deep fakes, fake accounts and political advertising, while non-compliance can lead to fines as much as 6% of a company’s global turnover, the EU executive said, confirming a Reuters report last week.

The companies, which include TikTok and Amazon’s live streaming eSports platform Twitch, have six months to comply with their pledges and will have to present a progress report at the beginning of 2023.

“The new code is a testimony that Europe has learned its lessons and that we are not naive any longer,” Commission Vice-President Vera Jourova told a news conference.

She said Russia’s invasion of Ukraine, the coronavirus disease 2019 (COVID-19) pandemic and Britain’s withdrawal from the European Union accelerated the EU’s crackdown on fake news.

Sanctions may include banning companies from Europe, EU industry chief Thierry Breton said.

“If there is consistent flouting of the rules, we can also think about stopping their access to our space of information,” he told the news conference.

Critics such as the Association of Commercial Television and Video on Demand Services in Europe (ACT) said there were grave shortcomings in the revised Code.

“The Review does not offer concrete commitments to limit ‘impermissible manipulative behavior.’ Commitments go no further than a blanket statement to follow the law which is obvious and does not require a Code,” it said. — Foo Yun Chee/Reuters

Continuity as Marcos gives key posts to pro-admin people

FORMER SENATE president Juan F. Ponce Enrile

By Kyle Aristophere T. Atienza, Reporter

Philippine President-elect Ferdinand R. Marcos, Jr., has named more Cabinet members, including a former defense chief who helped organize a mutiny that ousted Mr. Marcos’s father, the late dictator Ferdinand E. Marcos, in 1986.

Former senate president Juan Ponce F. Enrile, 98, will serve as Mr. Marcos’ presidential legal counsel, the latter’s camp said in a press release.

Mr. Enrile, a lawyer, was the defense chief of the older Marcos from 1972 to 1986.

The supposed ambush on Mr. Enrile’s convoy in 1972 was among the reasons cited by the older Marcos for his declaration of Martial Law, which enabled the arrests and deaths of thousands of activists and citizens.

He also served as Finance chief from 1966 to 1968 and Justice chief from 1968 to 1970.

“I will devote my time and knowledge for the republic and for BBM because I want him to succeed,” said Mr. Enrile, who has backtracked on his stance on Martial Law years after it was scrapped by a popular uprising.

Mr. Marcos has also tapped outgoing Justice Secretary Menardo I. Guevarra to head the Office of the Solicitor General, whose main task is to defend the state in the legal arena.

Mr. Guevarra, who started practicing law as early as 1986, was appointed Justice chief by President Rodrigo R. Duterte in 2018. Before holding his current post, he was Mr. Duterte’s deputy executive secretary.

Mr. Guevarra was among the few Duterte officials who openly rejected the practice of tagging activists and ordinary people as communists.

Meanwhile, the Marcos camp said Retired General Jose Faustino Jr. will serve at the Department of National Defense as senior undersecretary and officer-in-charge until he becomes its secretary in November.

“Faustino is being tapped as Senior Undersecretary and Officer-In-Charge of DND, a post he would later assume as Secretary on Nov. 13, 2022, in compliance with the one-year ban on the appointment of retired military officers,” the press release read.

As Defense chief, Mr. Faustino will play key roles in defending Philippine-claimed areas in the South China Sea.

Mr. Marcos is widely seen as a continuity president, picking up from where Mr. Duterte left off.

Mr. Guevarra and Mr. Faustino were appointed to key posts under the current administration, while Mr. Enrile has openly backed some of the key policies of Mr. Duterte.

Mr. Marcos will take his oath as the 17th President of the Philippines on June 30.

On that day, activists and victims of his father’s martial rule are expected to march on major streets in the capital Manila.

Blown off course again, Fed policymakers see near-record uncertainty

REUTERS

Federal Reserve policymakers are less confident than at any time since the height of the pandemic about what will happen with the economy, data published alongside their forecasts and the Fed’s hefty three-quarters-of-a-point rate hike this week show. 

The last time they were this worried they could be underestimating the coming deterioration in the labor market was in the depths of the Great Recession. But they are even more worried they are overestimating a hoped-for decline in inflation, documents charting confidence and risks seen in their forecasts show. 

The data helps underscore why policymakers are so focused on raising interest rates fast even if doing so causes a bigger dent to growth and unemployment than previously hoped, and why it is clarity on the inflation outlook that will drive policy. 

“It is clear that path of inflation continues to be the key consideration in how quickly the Fed gets to, and how far it moves past, the range of neutral in order to bring inflation down ‘clearly and convincingly,’” wrote Morgan Stanley economists, referring to the standard Fed Chair Jerome Powell has set for declaring victory on price pressures and slowing up on rate hikes. 

All 18 Fed policymakers are more-than-usually uncertain about their inflation and economic growth forecasts, and all but one note the same about their unemployment rate projections, the data shows. The same documents also show that no policymaker believes their forecasts are too pessimistic, and most believe they could be underestimating the risks. 

That means that though Fed forecasts embody the “softish” landing to which they aspire — inflation dropping to 2.2% by 2024, with the economy motoring along at 1.9% and unemployment rising just half a point to 4.1% — they are worried things could be worse, particularly for inflation. 

It also means, as with this week’s last-minute decision to deliver a hefty 75 basis point move after worse-than-expected inflation readings, that what Mr. Powell calls this “extraordinarily challenging and uncertain time” is sure to leave investors hanging. 

RAPID PACE OF RATE INCREASES 

Unquestionably, interest rates will rise, and rise fast: 17 of the 18 Fed policymakers see the target rate at least at 3.6% by next year, two full percentage points higher than today, and five see it above 4%. 

But is that where they will end up? Not even Fed Chair Powell knows. “I think we’ll know when we get there,” Mr. Powell told reporters Wednesday. 

“With the FOMC looking to remain nimble amid heightened uncertainty, guidance set out by communications should not be regarded as written in stone,” Barclays economists said in a note to clients following this week’s Federal Open Market Committee meeting. 

It’s a warning that investors may need to keep in mind as Mr. Powell’s colleagues start Friday to make their first public statements after this week’s policy meeting, and when Powell gives testimony next week before lawmakers on Capitol Hill. — Ann Saphir and Lindsay Dunsmuir/Reuters

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