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Australian regulator sues Airbnb for allegedly misleading customers on pricing

REUTERS

Australia’s competition regulator on Wednesday said it had initiated proceedings against Airbnb Inc ABNB.O in the country’s Federal Court for allegedly misleading consumers on pricing for accommodation in the country.

Between January, 2018 and August, 2021, the U.S.-based vacation rental company misled consumers in Australia by displaying prices for accommodation using only the ‘$’ sign, without clarifying that the prices were in U.S. dollars and not in the local currency, the Australian Competition & Consumer Commission (ACCC) said in a statement.

Airbnb did not immediately respond to a Reuters request for comment.

ACCC said it is seeking pecuniary penalties and orders to compensate people who were misled about pricing, among others.

The regulator added that when Airbnb received complaints on pricing, they told customers that prices were displayed in U.S. dollars because the user had selected that currency, which was often not the case.

“Airbnb‘s misleading conduct meant that consumers were deprived of the opportunity to make an informed choice about whether, and at what price, to book their holiday accommodation on the Airbnb platform,” ACCC Chair Gina Cass-Gottlieb said.

“In addition to paying higher prices than expected, some consumers who were charged in U.S. dollars also found themselves further out of pocket through currency conversion fees charged by their credit card provider.” – Reuters

S.Korea’s robust response to N.Korea seen aiding Japan’s military push

SEOUL – South Korea’s tougher stance towards the North under its new conservative president will be welcomed by Tokyo as Japan seeks to boost its military capabilities amid rising tensions on the Korean Peninsula and more broadly in the region, analysts say.

South Korea and the United States this week fired missiles and staged a joint show of air strength in response to a barrage of short-range ballistic missiles launched by North Korea on Sunday. Read full story

It marked the second time South Korean President Yoon Suk-yeol has taken such a direct response since taking office in May with a pledge to respond more forcefully if North Korean leader Kim Jong Un ignores warnings about military provocations and offers of dialogue.

“The escalation of tension on the Korean peninsula, North Korea’s actions and our response to that as we saw has to be something that puts a smile on Japan’s face,” said Kim Dong-yub of Kyungnam University in Seoul.

Signs North Korea is preparing for another nuclear test and a resumption of joint South Korea-U.S. military drills help Japan justify its pursuit of becoming a normal military state, said Kim, a former South Korean Navy officer.

For decades, Japan has stuck to a policy of keeping defense spending within 1% of gross domestic product, countering concerns about any revival of the militarism that led the country into World War Two.

During U.S. President Joe Biden’s visit to Tokyo last month, however, Japanese Prime Minister Fumio Kishida emphasized Tokyo’s readiness to take a more robust defense posture, something Washington has long welcomed to counter an increasingly assertive and militarily capable China.

Japan this week said it wanted drastically increase defense spending “within the next five years”. Read full stor

“The Yoon government’s stronger response to North Korean provocations will find support in Japan, not only as an effort to deter the Kim regime, but also as part of defending a regional order already under stress from China,” said Leif-Eric Easley, an international studies professor at Ewha University in Seoul.

In an update to Japan’s national security strategy due by year end, Kishida’s administration is expected to commit Japan to acquiring missiles and other equipment to allow it to strike enemy bases, a capability critics say puts Japan beyond the bounds of a pacifist constitution that forbids it to wage war.

 

‘CHERRY ON TOP’

The shift in Seoul’s posture comes as Japan and South Korea look to reset relations that have been hampered by disputes stemming from wartime past and Japan’s colonization of the Korean Peninsula.

Yoon has said he hoped to meet Kishida soon, and work with him to improve ties. Read full story

Corey Wallace, a Japanese politics and security expert at Kanagawa University, said while Japan is winning public support with its stronger defense policy, better relations with Seoul were a bonus.

“The Ukraine situation has galvanized public support for defense spending in ways the threat of China never did. Tokyo sees a window of opportunity to push on a door that was somewhat closed before,” Wallace said.

“Improved relations with Seoul is a cherry on top.”

About 72% of Japanese support stronger military defense, a poll of 1,060 respondents by Nippon Television Network and Yomiuri Newspaper on June 5 showed, and more than half wanted Japan to boost defense spending. Other recent surveys said most also expect better relations with South Korea under Yoon.

A stronger combined defense posture between South Korea and the United States towards North Korea will also help Japan focus more on keeping China in check, experts say.

“In theory, Japan could then dedicate more of its military resources and new spending to enhance its military presence in its southwest maritime domain instead to check China,” Wallace said.

“However, giving Japan that level of comfort would require years of positive Seoul-Tokyo relations.” – Reuters

World Bank slashes global growth forecast to 2.9%, warns of ‘stagflation’ risk

WASHINGTON – The World Bank on Tuesday slashed its global growth forecast by nearly a third to 2.9% for 2022, warning that Russia’s invasion of Ukraine has compounded the damage from the COVID-19 pandemic, and many countries now faced recession.The war in Ukraine had magnified the slowdown in the global economy, which was now entering what could become “a protracted period of feeble growth and elevated inflation,” the World Bank said in its Global Economic Prospects report, warning that the outlook could still grow worse.In a news conference, World Bank President David Malpass said global growth could fall to 2.1% in 2022 and 1.5% in 2023, driving per capita growth close to zero, if downside risks materialized.Malpass said global growth was being hammered by the war, fresh COVID lockdowns in China, supply-chain disruptions and the rising risk of stagflation — a period of weak growth and high inflation last seen in the 1970s.“The danger of stagflation is considerable today,” Malpass wrote in the foreword to the report. “Subdued growth will likely persist throughout the decade because of weak investment in most of the world. With inflation now running at multi-decade highs in many countries and supply expected to grow slowly, there is a risk that inflation will remain higher for longer.”Between 2021 and 2024, the pace of global growth is projected to slow by 2.7 percentage points, Malpass said, more than twice the deceleration seen between 1976 and 1979.The report warned that interest rate increases required to control inflation at the end of the 1970s were so steep that they touched off a global recession in 1982, and a string of financial crises in emerging market and developing economies.Ayhan Kose, director of the World Bank unit that prepares the forecast, told reporters there was “a real threat” that faster than expected tightening of financial conditions could push some countries into the kind of debt crisis seen in the 1980s.While there were similarities to conditions back then, there were also important differences, including the strength of the U.S. dollar and generally lower oil prices, as well as generally strong balance sheets at major financial institutions.To reduce the risks, Malpass said, policymakers should work to coordinate aid for Ukraine, boost production of food and energy, and avoid export and import restrictions that could lead to further spikes in oil and food prices.He also called for efforts to step up debt relief, warning that some middle-income countries were potentially at risk; strengthen efforts to contain COVID; and speed the transition to a low-carbon economy.The bank forecast a slump in global growth to 2.9% in 2022 from 5.7 percent in 2021, a drop of 1.2 percentage points from its January forecast, and said growth was likely to hover near that level in 2023 and 2024.It said global inflation should moderate next year but would likely remain above targets in many economies.Growth in advanced economies was projected to decelerate sharply to 2.6% in 2022 and 2.2% in 2023 after hitting 5.1% in 2021.U.S. growth was seen dropping to 2.5% in 2022, down from 5.7% in 2021, with the euro zone to see growth of 2.5% after 5.4%.Emerging market and developing economies were seen achieving growth of just 3.4% in 2022, down from 6.6% in 2021, and well below the annual average of 4.8% seen in 2011-2019.China’s economy was seen expanding by just 4.3% in 2022 after growth of 8.1% in 2021.Negative spillovers from the war in Ukraine would more than offset any near-term boost reaped by commodity exporters from higher energy prices, with 2022 growth forecasts revised down in nearly 70% of emerging markets and developing economies.The regional European and Central Asian economy, which does not include Western Europe, was expected to contract by 2.9% after growth of 6.5% in 2021, rebounding slightly to growth of 1.5% in 2023. Ukraine’s economy was expected to contract by 45.1% and Russia’s by 8.9%.Growth was expected to decelerate sharply in Latin America and the Caribbean, reaching just 2.5% this year and slowing further to 1.9% in 2023, the bank said.The Middle East and North Africa would benefit from rising oil prices, with growth seen reaching 5.3% in 2022 before slowing to 3.6% in 2023, while South Asia would see growth of 6.8% this year and 5.8% in 2023.Sub-Saharan Africa’s growth was expect to slow somewhat to 3.7% in 2022 from 4.2% in 2021, the bank said. — Reuters

A Brown Company, Inc. to hold annual stockholders’ meeting via remote communication on June 30

 

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Philex Mining Corp. to hold annual meeting of stockholders virtually on June 30

 

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Beneficial Life Insurance Company, Inc. to conduct annual stockholders’ meeting through remote communication on June 30

To register, please click the link:

https://form.jotform.com/benlifemis.com.ph/2022-ASM-registration

or send an email to:

corpsec@benlife.com.ph

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Marcos gov’t unlikely to suspend fuel tax

Motorists start filling up gas at a station in Marikina City, June 6. — PHILIPPINE STAR/ WALTER BOLLOZOS

A SUSPENSION of the excise tax on fuel products is unlikely under the administration of President-elect Ferdinand R. Marcos, Jr., according to the incoming Finance chief.

Finance Secretary-designate Benjamin E. Diokno, who currently heads the Philippine central bank, said it would be unwise to suspend the excise tax on fuel products because reversing such a move would be “very difficult.” 

“When you cut taxes on fuel, it will benefit everybody, the rich, the poor, the middle-income class,” he told CNN Philippines. “When there is a need to put it back, restore the cut because things have normalized, it’s very difficult to push such measures before Congress.”

“I think it’s a wrong move to cut taxes at this time.”

Mr. Diokno made the statement after fuel retailers on Tuesday raised the prices of gasoline, diesel and kerosene by P2.70, P6.55 and P5.45 per liter, respectively.

The current excise tax rate is P10 per liter for gasoline, P6 per liter for diesel, P5 per liter for kerosene, and P3 per liter for liquefied petroleum gas (LPG).

The Duterte administration had rejected calls to suspend excise taxes on fuel products despite the continued spike in oil prices. Instead, the government provided direct aid to the most vulnerable sectors.

Mr. Diokno said targeted assistance to jeepney drivers, farmers, and fisherfolk is “more efficient than cutting taxes” and that the next government “will continue that approach.”

However, some public utility drivers claimed they have yet to receive the P6,500 fuel subsidy promised by the government.

Mr. Diokno acknowledged that the delay in the distribution of the cash assistance is a “problem of implementation.”

“We’ll make sure implementation will be efficient and will be timely,” he said.

Mr. Marcos on Monday met with members of his economic team, including Mr. Diokno, incoming Budget chief Amenah Pangandaman, and incoming Socioeconomic Planning chief Arsenio M. Balisacan, among others.

Mr. Diokno said the economic team was tasked to prepare a medium-term fiscal plan for the next six years. “The first half will be a detailed fiscal plan,” he said, without giving details.

“The main goal is to reduce the [budget deficit] by the end of his term. We want to satisfy our plan to be an upper middle-income economy and reduce poverty by single digit.”

The government is targeting to bring down the budget deficit to 3% of gross domestic product (GDP) by 2028.

Meanwhile, Senator Mary Grace Natividad S. Poe-Llamanzares renewed her call for the suspension of excise tax on fuel and petroleum products until the global market normalizes, citing the possibility of a widespread transportation strike.

“The Executive department must alleviate the pain of our PUV (public utility vehicle) drivers and operators… While it is true that failure to meet our revenue targets may have adverse effects on our country, so could a transportation strike which can paralyze operations in key areas and cost us much more,” she said in a statement.

Senator Maria Imelda Josefa “Imee” R. Marcos said oil companies should increase the bioethanol content to keep pump prices low.

“While lawmakers are stuck in debate over a fuel excise tax suspension, increasing bioethanol content is the clear way forward to give some relief to consumers,” she said in a statement.

The Biofuels Act of 2006 requires oil companies to produce a gasoline blend with at least 10% bioethanol, but Ms. Marcos said the National Biofuels Board can recommend an increase in the minimum requirement, subject to the Energy department’s approval.

If bioethanol content is increased up to around 20% — the level safe for vehicle models as old as 2001, Ms. Marcos estimated that gasoline prices will drop by P3.60 per liter. — Kyle Aristophere T. Atienza and Alyssa Nicole O. Tan

Next central bank governor signals at least two rate hikes

FELIPE M. MEDALLA / COURTESY OF BANGKO SENTRAL NG PILIPINAS
FELIPE M. MEDALLA / COURTESY OF BANGKO SENTRAL NG PILIPINAS

THE PHILIPPINES will likely follow its interest-rate increase last month with at least two more hikes to curb inflation, according to the central bank’s incoming governor.

“It’s almost a sure thing to everyone that we will raise in June,” Felipe M. Medalla, a board member of the Bangko Sentral ng Pilipinas (BSP) who is set to take over from Benjamin E. Diokno as governor on July 1, said in an interview on Tuesday. There is a “90% chance there’s another one in August. The real question is: Is that the last one?”

He said the successive hikes will lift the benchmark rate to 2.75% from 2.25% now — a level seen reached by the end of third quarter in the median of forecasts compiled by Bloomberg. Increases beyond that will be data-dependent, Mr. Medalla said.

The BSP is scheduled to review policy settings on June 23 and subsequently on Aug. 18.

The peso fell by 0.2% to 52.95 per dollar, approaching the lowest since January 2019. Local stocks rose by 0.5%.

Mr. Medalla will take the helm at BSP as its rate hike cycle picks up speed to ride out the inflation wave sweeping the world. Consumer prices rose an annualized 5.4% in May, data released on Tuesday showed, the fastest in more than three years and well above the bank’s 2%-4% target. 

The governor-designate also said the BSP need not move in lockstep with the US Federal Reserve, saying the nature of inflation in the Philippines is different from what the US is experiencing.

“Even if inflation is purely supply side, we are afraid there may be what we call second-round effects,” Mr. Medalla said in his first sit-down interview since accepting the nomination. Spillover inflation effects may materialize “if supply shocks are so prolonged.”

Second-round inflation has already materialized and the BSP wants to prevent a further buildup, Mr. Diokno said earlier on Tuesday after the latest inflation print. Both the incoming and outgoing BSP chiefs have signaled the need to tighten monetary policy after the lift-off in May. The policy prescription follows a clouded inflation outlook amid continued supply disruptions from Russia’s war in Ukraine that’s in its fourth month.

Philippines has among Southeast Asia’s quickest inflation. The peso slid last week to three-year low, potentially further fanning costs in a country that imports commodities from crude oil to wheat.

“Transmission of peso-dollar rate to inflation is quite low,” Mr. Medalla said, noting that the peso’s performance was better than the middle of the pack. He sees the Philippine economy growing at least 7% this year on the back of rejuvenated consumer spending as it recovers from the pandemic. — Bloomberg

Cebu Landmasters targets 21 projects worth P31.5B

PROPERTY developer Cebu Landmasters, Inc. (CLI) announced on Tuesday that it is planning 21 pipeline projects worth P31.5 billion.

“We are constantly getting better so that we can continue to scale up our performance and rise to the challenge of fulfilling all those housing demands, especially in VisMin (Visayas and Mindanao),” Chief Finance Officer Beauregard Grant L. Cheng said during the company’s annual stockholders meeting.

During the virtual event, he said that the company had set aside more than P13 billion for its 2022 capital spending to cover land acquisition and construction progress.

This year’s capital expenditure budget is 34.6% higher than last year’s P9.66 billion, and topped the P10.64 billion spent in 2018 when the company marked its first year of listing at the stock exchange.

“This (capital spending) will come in the form of more project launches across Visayas and Mindanao that will allow us to grow our topline and bottom line,” Mr. Cheng said.

He said the company had secured this year more funding facilities at longer tenors and at lower fixed rates.

Mr. Cheng said CLI is “confidently projecting” a 20% growth in revenues and net income to shareholders for 2022. He said financial results in the first quarter of the year indicate that the projections would be met.

In the first quarter, CLI posted P810.64 million in net income attributable to equity holders, 13.6% higher than the P713.83 million registered a year ago. It reported gross revenues of P3.65 billion, up 54% from P2.37 billion previously.

In 2021, the company reported that net income to shareholders surged by 42% to P2.61 billion. Consolidated revenues rose by 35% to P11.16 billion.

“Notwithstanding mobility restrictions and supply chain interruptions, our team achieved quick project turnarounds. Our construction activities stayed in full swing throughout 2021,” CLI Chairman and Chief Executive Jose R. Soberano III said in a statement.

“Our track record for delivering projects on time and our responsiveness to customer needs, thanks to digital innovations, allowed us to keep them satisfied and ready to endorse us to others,” he added.

Mr. Soberano said that CLI’s growth trajectory in 2022 will be supported by a land bank of 103 hectares valued at P12 billion.

“CLI will continue in 2022 to expand to new business segments, deepen our investments in the Visayas and Mindanao regions while strengthening internal systems to achieve its growth guidance of 20%,” Mr. Soberano said.

The company has said that its 22-hectare Davao Global Township (DGT) recently sold out the first three towers of its first residential project The East Village at DGT, with a fourth tower to be launched soon.

The planning and development of a 14.3-hectare property in Cagayan de Oro is also underway. It is planned to be a mixed-use university town.

CLI is also working on reclamation on the 100-hectare Minglanilla Techno Business Park in Cebu.

On Tuesday, CLI shares ended higher by 1.51% or four centavos to close at P2.69 at the stock exchange. — Luisa Maria Jacinta C. Jocson

North Star defers IPO on increased market volatility

NORTH Star Meat Merchants, Inc. announced on Tuesday that it is deferring its planned initial public offering (IPO) amid concerns about market volatility and inflationary pressures.

“While reception to the company and its plans has been positive, the company was constrained to defer the IPO due to increased market volatility amidst inflationary concerns,” the company said in a letter to the Philippine Stock Exchange (PSE). The letter was dated June 6 but made public on June 7.

North Star’s proposed listing would offer up to 392 million common shares, consisting of up to 360 million primary common shares and up to 32 million secondary common shares, with an overallotment option of up to 58 million secondary common shares.

The shares would have an offer price of up to P10 per share, bringing the IPO size to P4.5 billion.

According to the latest PSE advisory, the offer period was planned to run from June 13 to 17, with a tentative listing date on June 24.

The company said the deferral was made in consultation with BDO Capital & Investment Corp. and China Bank Capital Corp., its joint lead underwriters and joint bookrunners.

It also intends to proceed with its expansion plans with an adjusted timetable and funding source. The company earlier announced that proceeds from the offering will be used to expand its cold chain infrastructure, improve its operating cycle efficiencies and expand its product lines and research and development work.

“The company continues to believe in its growth prospects and hopes to be able to tap the capital markets in the future,” North Star said, adding that “we shall update the exchange of the company’s future plans with respect to the IPO at an appropriate time.”

North Star is a meat vendor and retailer. It operates 360 meat concessions nationwide, with a cold storage capacity of 8.09 million kilograms and a capacity to deliver up to 120,000 kilograms of meat daily. — Luisa Maria Jacinta C. Jocson

Buddha’s stories translated into Filipino

WHEN the human king observes a monkey save his troop from an accident on the mango tree they were living in, the human king learns in the end to not only how to be king but to be a servant leader from then on — that is the moral of the story which listeners’ learn from “Ang Haring Matsing” (“The Monkey King”). It is just one of the stories from the Jataka Tales which is now available as a 12-episode podcast.

The podcast is a collaboration between the Embassy of India in Manila and Areté Ateneo in which the Jataka Tales have been translated into Filipino.

Among the oldest and best-known stories of Indian literature, the Jataka Tales consists of stories with each featuring the Buddha in different forms until he attains enlightenment. Each story ends with a profound teaching and a moral lesson.

THE PROJECT
In February 2021, the Embassy of India in Manila contacted the faculty of Areté Ateneo about producing the Jataka Tales.

“We do have a very strong relationship with lots of universities, but because Ateneo had strong capacities in terms of production, we got a lot of support,” Ambassador Shambhu S. Kumaran told BusinessWorld at the podcast’s launch on May 31 at the Doreen Theater at the Ateneo Art Gallery.

“We decided that we should do more work together for cultural understanding and academic exchanges,” Mr. Kumaran added.

Titled Kwentong Jataka, each of the 12 short podcasts narrates one of the Jataka Tales in Filipino. Among the stories included are Ang Jackal na Nagligtas sa Leon (The Jackal Who Saved the Lion) which talks about friendship and trust, Uling’ ni Impo (Granny’s Blackie) which focuses on dept of gratitude, and Ang Puso ng Matsing (The Heart of the Monkey) which highlights courage.

The project aims “to contribute towards making enriching supplementary learning resources accessible for young learners in the Philippines,” a press release stated.

The project was conceptualized and funded by the embassy while the translation of stories into Filipino, the development of illustrations, and the production of podcasts was carried out by faculty of Areté Ateneo and the Filipino Language Department of Ateneo de Manila University.

“As children, what really moved us are stories. Today, I heard echoes of what I heard when I grew up, and am delighted that hopefully hundreds of Filipino children will also hear the stories from another culture,” Mr. Kumaran said in his speech during the launch. “While we may be so varied in so many things, the human condition is similar.”

The project is a part of the Indian Embassy’s effort to encourage wide-ranging, people-oriented and forward-looking educational collaboration with Philippine entities.

The Kuwentong Jataka podcasts are available for free on the website and YouTube Channel of the Embassy of India, the website of Areté Ateneo, as well as on Spotify and Apple podcasts. — Michelle Anne P. Soliman

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