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PSE index rebounds as gov’t eases restrictions

REUTERS

SHARES rebounded on Monday as Metro Manila and other areas will be under eased restrictions for the next two weeks, allowing businesses to operate at full capacity and increased mobility.

The benchmark Philippine Stock Exchange index (PSEi) went up by 98.78 points or 1.37% to close at 7,311.01 on Monday, while the broader all shares increased by 46.24 points or 1.20% to close at 3,889.09.

“Investors digested the government’s latest decision on the social restrictions of the country beginning March 1 [and] cheered the downgrade of the alert level status in the National Capital Region and other areas of the country since this is expected to lead to more economic activities which in turn would help in sustaining our recovery momentum,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Market is domestic oriented and has for now ignored geopolitical risks [and the] war in Ukraine as it prices in gross domestic product growth and corporate earnings sustainability with the implementation of looser mobility restrictions starting tomorrow,” First Metro Investment Corp. (FMIC) Head of Research Cristina S. Ulang said in a Viber message.

Metro Manila and nearby cities will be under the Alert Level 1 starting on Tuesday as health authorities reported fewer than 2,000 coronavirus infections and prepared to transition the country to an endemic phase.

Under Alert Level 1, there are no restrictions on indoor and outdoor operating capacities. Intrazonal and interzonal travel will also be allowed.

All establishments can likewise operate at full capacity. Minimum public health standards will still need to be followed.

“Market is up most likely because today is the last day for MSCI index rebalancing. This is also the reason why we are enjoying net foreign buying during the past few days,” COL Financial Group, Inc. First Vice-President April L. Tan added in a Viber message on Monday.

Majority of sectoral indices ended in the green except for services, which dropped by 2.21 points or 0.11% to 1,913.55.

Meanwhile, property climbed 138.31 points or 4.06% to 3,540.79; mining and oil rose by 329.50 points or 2.76% to 12,232.74; industrials went up by 245.34 points or 2.43% to 10,341.27; holding firms improved by 49.55 points or 0.72% to 6,895.99; and financials gained by 1.85 points or 0.11% to 1,689.88.

Value turnover increased to P11.61 billion with 2.11 billion shares changing hands on Monday from the P9.94 billion with 2.82 billion issues seen the previous trading day.

Advancers outnumbered decliners, 108 versus 79, while 49 names closed unchanged.

Net foreign buying dropped to P202.74 million on Monday from P748.68 million on Thursday. — L.M.J.C. Jocson

Hong Kong domestic helpers abandoned as COVID takes a toll

REUTERS

HONG KONG/MANILA – A rapid spread in COVID-19 cases in Hong Kong has put the plight of domestic helpers in the global financial hub in the spotlight after some were fired or made homeless by their employers when they tested positive for coronavirus.

Hong Kong has around 340,000 domestic helpers, most hailing from either the Philippines or Indonesia. Many families in the city depend on live-in helpers for housekeeping and to look after the elderly and children, with the minimum wage set at HK$4,630 ($593) per month.

Under Hong Kong law, migrant domestic workers must live with their employers, often residing in tiny rooms or sharing the bedrooms of the children they care for.

Reports from helper support groups and local media of these workers being kicked out or fired have triggered appeals from Philippine authorities for the Chinese-ruled city to protect and support the domestic workers.

The Hong Kong Federation of Asian Domestic Workers Unions told Reuters last week it had received more than 20 cases of domestic helpers who had tested positive for COVID being fired.

Hong Kong’s Labor Department has warned employers it is an offense to sack those infected. People who break the law could face a fine of up to HK$100,000. The department did not immediately respond to a Reuters request for comment.

Two domestic helpers who said they were abandoned by their employers and left on the streets after testing positive for COVID told Reuters they felt helpless and traumatised by the experience.

“I was depressed, hopeless, and felt anxiety because I am in a foreign country,” said one of the helpers, who declined to be identified due to the sensitivity of the issue. She said her employers gave her medicine, but told her to leave their home and find a shelter to stay at, so she did not infect the family.

“All I was thinking about was where to get food and where to find a place to stay because it was very cold outside,” said the woman, who has been working in Hong Kong as a domestic helper since 2005.

The other helper, who has been in Hong Kong for four years, said she felt discriminated against, and would now rather return to the Philippines than stay in Hong Kong.

Both the helpers found shelter with HELP for Domestic Workers, a non-governmental organisation which provides shelter and basic supplies to those in need.

“At the moment, the supply is not keeping up with the demand. And given that there are so many mandatory testing notices, so many people that are testing positive, we are unable to find isolation facilities for everybody,” said Manisha Wijesinghe, executive director of HELP for Domestic Workers.

As the government grapples to contain the COVID outbreak, authorities have banned flights from nine countries, including the Philippines, and tightened entry restrictions, leading to a shortage of domestic helpers.

Many domestic helpers work long hours and are only allowed one day off a week, when they usually get together in parks and open spaces throughout the city.

Hong Kong’s public hospitals have been severely stretched, struggling to cope with an influx of COVID patients including the elderly, many of whom have resisted vaccinations.

Since the start of the epidemic, Hong Kong has recorded more than 171,000 coronavirus infections and over 650 deaths, much lower than most major cities.

Healthcare and isolation facilities are overwhelmed, with the government scrambling to build new units to deal with a surge in cases.

“I was sitting in a taxi area while waiting for information on where I could go. I told myself I have to stay strong, I am alone and I don’t have help. But at that time, I was already in tears,” said one of the two domestic helpers, relating her experience. — Reuters

Human-like AI still a long way off

PIXABAY

The world is still a long way off from human-like AI (artificial intelligence), according to experts at a Feb. 24 event by Facebook parent Meta.

“When you train a system with a data set, the data is collected in a particular way in one place. When you deploy it in a different place and time, [however], it breaks down,” said Yoshua Bengio, a professor at Université de Montréal known for his pioneering work in deep learning, a machine learning technique which teaches computers to learn by example.

In contrast, a human who learns how to drive in North America —  where drivers keep to the right side of the road — can adapt to left-hand traffic in London.

“The people are the same, the physics is the same… our brains are structured so that we can separate pieces of knowledge, infer our way around [this one change], and retrain our habits so we can do well in London as well,” Mr. Bengio said. 

Yann LeCun, Meta vice president and chief AI scientist, said AI does not have the ability of humans and animals to learn how the world works. Teenagers, he expounded, can drive a car with a degree of certainty after hours of training. They also know better than to drive off a cliff — something that a tabula rasa AI machine will not be able to figure out.

“How do we get AI to accumulate the enormous amounts of background knowledge humans accumulate in the first few months of their lives?” he asked. “In my opinion, this is what constitutes the basis for common sense.”

Deep learning is a possible way out of this conundrum. So is self-supervised learning, in which AI is given raw data (instead of being trained on labeled data).

According to Meta Chief Executive Officer Mark Zuckerberg, self-supervised learning seems closer to how the brain learns, because it compels AI to fill in the missing data and learn abstract representations along the way.

“You don’t need to show a kid thousands of pictures of cats to make a kid learn what a cat is,” he said. “This has become the primary method of AI to learn natural text.”

The technical question under self-supervised learning is how to deal with uncertainty and prediction, added Mr. LeCun.

“The type of architecture we have to build is where the prediction doesn’t necessarily have to be at the level [where the system has to predict the next frame by reconstructing all the details], but where useful information is present and irrelevant stuff isn’t,” he said.

Mr. Bengio said that, architecture-wise, AI can take inspiration from how human brains can attend to and reason around new situations, and then integrate this into machine learning.

“We can find out how knowledge is presented in a modular way, and how these pieces of knowledge that are reusable can be used on the fly to solve new tasks,” he said.

Meta is creating what it calls a more immersive version of the Internet through the metaverse. AI has been touted as the most important foundational technology for this ecosystem. — Patricia B. Mirasol

After much praised waste export ban, Australia under fire for shipping plastic trash as ‘fuel’

REUTERS

SINGAPORE — Australia will allow plastic trash to be shipped overseas and burned as fuel under a law introduced last year that banned the export of some plastic waste, the environment minister’s office said, prompting accusations from critics of hypocrisy. 

Australia was praised for passing a landmark waste export ban in response to a public backlash against rich countries sending trash to poor countries where it often ends up being dumped, burned or leaking into the ocean. 

But days after the Recycling and Waste Reduction Act came into effect on July 1 last year, Australia granted a license to its largest waste-to-energy facility to export plastic waste in the form of a fuel, a spokesperson for Minister for the Environment Sussan Ley confirmed in response to Reuters’ questions. 

The license granted to Cleanaway Waste Management Limited and ResourceCo Pty Ltd., which has not previously been reported, is the first confirmation that Australia will ship plastic trash under the classification of Processed Engineered Fuel (PEF). 

ResourceCo declined to comment and Cleanaway did not respond to a request for comment. 

Waste-derived fuels such as PEF — a shredded and compressed mix of trash like plastic, wood and metal — are used as a cheap alternative to coal by cement companies and incinerators, which promote its use as a way of reducing fossil fuel consumption. 

Some scientists and environmentalists say burning plastic as a fuel undermines a much-needed switch to cleaner energy, increases planet-warming greenhouse gas emissions and releases toxic chemicals that put public health at risk. 

Environmental groups said Australia had misled the public and ensured its waste would continue to pollute developing countries, especially in Southeast Asia which has become the main destination for the rich world’s waste. 

“Australians were very proud and excited when the government announced its world-first ‘waste export ban,’” said Jane Bremmer, plastic advisor to the International Pollutants Elimination Network (IPEN). 

“Now we see this was disingenuous and a cynical political announcement as they are rebranding plastic waste exports as fuel.” 

Ms. Ley’s spokesperson said the law states that processed plastic can be exported, adding that only “a small number” of export licenses had been issued. 

The spokesperson said there was no available data on how much plastic had been exported as fuel since the ban was introduced or information about where it was sent. 

WASTE CRISIS
Australia’s new law bans the export of mixed plastic waste, which could include a hard-to-recycle jumble of items like bags, polystyrene cups and bubble wrap. 

It permits the shipment of plastic waste that has been separated, like bales of drinks bottles that can be sent to recyclers overseas, as well as “processed” waste fuels. 

Australia provided $30 million ($21.6 million) in loans to ResourceCo and Cleanaway for a plant to be built in New South Wales that will process 250,000 tonnes of waste a year into fuel for a nearby cement factory and exports to Asia, Ms. Ley’s spokesperson confirmed. 

With only 10% of global plastic waste recycled, burning plastic as a fuel is becoming increasingly popular as a way to get rid of soaring volumes of single-use plastic trash. 

Plastic production, a key growth area for the petrochemicals industry, is due to double over the next 20 years. 

Big oil companies that make plastic and major brands that use single-use packaging are investing in plastic-to-fuel projects in poor countries like Indonesia, Reuters revealed in a series of investigations last year. 

United Nations members are holding a summit in Nairobi this week to agree on terms for the first ever plastic pollution treaty, including the role of waste-to-fuel processes. 

Australian Environment Minister Ley said this month that she wants to use the summit to urge other countries to “follow Australia’s lead” on waste export bans so plastic is “not shipped offshore where it becomes another country’s problem,” according to local media. 

But environmentalists in Southeast Asia said Australia’s rebranding of plastic waste as a fuel raised fears that rich countries would agree to a deal to continue exporting pollution to the developing world. 

“Countries in Southeast Asia continue to be the dumping ground of wastes and discards for the developed and industrialized world,” said Aileen Lucero, National Coordinator for EcoWaste Coalition in the Philippines. 

“This not only exacerbates environmental and health risks but also amplifies the waste crisis facing countries like the Philippines.” —  Joe Brock and Kanupriya Kapoor/Reuters

Russian central bank scrambles to limit fallout of tough sanctions

WIKIMEDIA COMMONS

Russia’s central bank announced a slew of measures on Sunday to support domestic markets, as it scrambled to manage the broadening fallout of harsh Western sanctions over the weekend in retaliation against Moscow’s invasion of Ukraine. 

The central bank said it would resume buying gold on the domestic market, launch a repurchase auction with no limits and ease restrictions on banks’ open foreign currency positions. It also increased the range of securities that can be used as collateral to get loans and ordered market players to reject foreign clients’ bids to sell Russian securities. 

The central bank did not reply to a Reuters request for comment. 

The steps came after Western allies ratcheted up sanctions on Saturday, taking action to banish big Russian banks from the main global payments system SWIFT and announced other measures to limit Moscow’s use of a $630 billion war chest to undermine sanctions. 

The new set of sanctions were likely to deal a devastating blow to the Russian economy and make it hard for Russian banks and companies to access the international financial system. The rouble plunged nearly 30% to an all-time low versus the dollar on Monday. 

Russians waited in long queues outside ATMs on Sunday, worried that new Western sanctions over Moscow’s invasion of Ukraine will trigger cash shortages and disrupt payments. 

“A bank run has already started in Russia over the weekend … and inflation will immediately spike massively, and the Russian banking system is likely to be in trouble,” said Jeffrey Halley, Asia-based senior market analyst at OANDA. 

Nomura analysts said the fresh reprisal measures by the West against Russia is likely to have wider global implications. 

“These sanctions from the West are likely to eventually hurt trade flows out of Russia (around 80% of FX transactions handled by Russian financial institutions are denominated in USD), which will also hurt the growth outlook of Russia’s key trading partners including Europe and lead to greater inflationary pressures and risk of stagflation, we think,” the analysts wrote in a note to clients. 

Energy major BP opened a new front in the West’s campaign to isolate Russia’s economy, with its decision to abandon its stake in state oil company Rosneft at a cost of up to $25 billion, the most aggressive move yet by a company in response to Moscow’s invasion of Ukraine. 

The Russian business operations of other Western corporations are also in the spotlight as governments tighten the financial screws on Moscow 

Several European subsidiaries of Sberbank Russia, majority owned by the Russian government, are failing or likely to fail due to the reputational cost of the war in Ukraine, the European Central Bank, the lenders’ supervisor, said on Monday. 

The Russian central bank in several announcements on Sunday sought to ensure financial stability. It said it would resume buying gold on the domestic market from Feb. 28. 

It added that customers of sanctioned banks would be unable to use their bank cards outside Russia, and that cards issued by the sanctioned banks won’t work on Google Pay or Apple Pay. 

It also ordered market players to reject attempts by foreign clients to sell Russian securities, according to a central bank document seen by Reuters. 

That could complicate plans by the sovereign wealth funds of Norway and Australia, which said they planned to wind down exposure to Russian-listed companies. 

In a bid to inject cash into the financial system, the central bank said there would be no limit at a “fine-tuning” repo auction it plans to hold on Monday and added that the banking system remained stable after the new sanctions targeting Russia’s financial institutions. 

The central bank said bank cards were working as normal and that customers’ funds could be accessed at any time. It said it would substantially increase the range of securities that can be used as collateral to get central bank loans. 

The central bank also said it is temporarily easing restrictions on banks’ open foreign currency positions after the sanctions. The measure, allowing banks suffering from “external circumstances” to keep positions above the official limits, will be in place until July 1, it said in a statement. 

The central bank said that it would continue to monitor changes in currency positions “in order to guarantee the normal functioning of the currency and money markets and the financial stability of lending institutions.” — Reuters

As Russia invades Ukraine, Moscow battles big tech to control the narrative

NEW YORK/MOSCOW — As Russian missiles rained down on Ukrainian cities, another battle took place online and over the airwaves. 

Moscow ramped up efforts to control the narrative playing out in news media and on tech platforms, while big tech companies Facebook-owner Meta Platforms Inc. and Alphabet Inc.’s Google put restrictions on Russia’s state-controlled media outlets in Ukraine and around the world. 

On Friday, Russia said it would partially restrict Facebook, a move Meta said came after it refused a government request to stop the independent fact-checking of several Russian state media outlets. By Saturday, Twitter also said its service was being restricted for some Russian users. 

Images and videos were slower to load on Facebook after the slowdown was announced, according to users, while Facebook Messenger had long periods of not loading at all. On mobile devices, Twitter remained slow — it has been the subject of a punitive slowdown since March. Many state websites, including the Kremlin site kremlin.ru, have also suffered outages in recent days. 

For the tech companies, the stand-off is the latest step in an ongoing confrontation with Russia where platforms risk government-imposed restrictions in the country as it seeks to censor dissidents while protecting state-run media. 

Major social, video and livestreaming platforms from Facebook to TikTok and Twitch are coming under increasing pressure to combat falsehoods on their platforms relating to the conflict, including the spread of misleading footage. 

The escalation of Russia’s clash with big tech comes days before a deadline Moscow set for major foreign tech companies to comply with a new law that requires them to set up official representation in the country, which could make it easier for the Kremlin to regulate platforms. It follows a series of fines and slowdowns imposed on platforms which the Russian government said failed to remove illegal content. 

Ahead of the March deadline, an online list by Russia’s communications regulator Roskomnadzor showed only Apple, Spotify and Viber had fulfilled all three requirements of the law as of 2145 GMT on Sunday. They are: registering an account with the regulator, giving users a way to communicate directly with the company, and setting up a representative office. 

This month, Russia threatened the companies with an advertising ban if they do not comply. Harsher restrictions that could follow include speed slowdowns or outright blocks, Russian officials have said. 

Big tech companies also face the burden of weighing demands from Ukrainian officials and sympathizers worldwide who have called on them to expel Russian users from their services to stop the spread of false information, while also preserving the access of dissidents to vital digital tools. 

“Mark Zuckerberg, while you create Metaverse – Russia ruins real life in Ukraine! We ask you to ban access to @facebookapp and @instagram from Russia – as long as tanks and missiles attack our kindergartens and hospitals!” Ukrainian Vice Prime Minister Mykhailo Fedorov wrote on Twitter on Sunday. 

Responding to the demands, Meta’s head of global affairs Nick Clegg tweeted on Sunday that turning off Facebook and Instagram in Russia would “silence important expression at a crucial time.” 

It was clear others across the tech landscape were grappling with similar dilemmas. Just minutes after saying in a post on Sunday that the Telegram messaging app would consider restricting some channels for spreading false information, founder Pavel Durov said the company would no longer do so after receiving feedback from users. 

RESTRICTIONS
The activities of state-controlled media such as RT and Sputnik, which were hit with new EU sanctions on Sunday, has been a key source of conflict between Moscow and major tech platforms, as activists and politicians demanded the companies demonetize or ban the Kremlin-sponsored outlets. 

Roskomnadzor has warned local media not to circulate what it called “false information” about Moscow’s military operation, banning the use of the words “invasion” and “assault” to describe its attack on Ukraine. Russian tech giant Yandex has also started warning Russian users looking for news about Ukraine on its search engine about unreliable information on the internet. 

Russia calls its actions a “special operation” that it says is not designed to occupy territory but to destroy Ukraine’s military capabilities and capture individuals who it sees as dangerous nationalists — something the government in Kyiv and Western powers say is baseless propaganda. 

State-run media has long been a contentious presence on major social platforms, some of which label those accounts in an effort to be more transparent about the source of information. 

Amid Russia’s invasion, Facebook, Twitter, Google and its video streaming service YouTube took new measures to restrict Russian state media from making money from ads on their sites. Twitter, which banned ads from state-backed media in 2019, said it was pausing all ads in Russia and Ukraine to ensure the visibility of public safety information. Google, the world’s biggest ad seller, also said it was not allowing Russian state media to sell ads using its tools. 

Facebook and Google also said they had restricted access to some state media accounts in Ukraine at the request of the Ukrainian government. Google said on Sunday it had banned downloads of RT’s mobile app in Ukraine in response to a government legal request. 

As Western companies begin to heed new economic sanctions against Russia and pressure mounts to combat online disinformation, experts say the fight between Russia and the most powerful tech companies may intensify. — Elizabeth Culliford/Reuters

Israel to open borders to tourists, regardless of vax status

HANDOUT PHOTO

Starting March 1, Israel will allow entry to all tourists regardless of whether they have been vaccinated against coronavirus disease 2019 (COVID-19).

“We are seeing a steady decline in the mortality rates across the world therefore, we see it is time to gradually open tourism,” said Prime Minister Naftali Bennett.

Under the new guidelines, vaccinated and unvaccinated tourists of all ages will be allowed to enter Israel provided they present a negative RT-PCR test before arriving, and take an RT-PCR test upon landing in Israel.

“Our indicators must be in sync with the situation on the ground, we must be certain that what we are telling the public is in sync with what is to be expected.  In order to maintain public trust and to be sure that the government’s guidelines are being implemented, we need to open up when the situation improves — and it is improving significantly,” said Mr. Bennett.

Putin puts nuclear deterrent on alert; West squeezes Russian economy

RUSSIAN President Vladimir Putin. — REUTERS

KYIV/MOSCOW — President Vladimir Putin put Russia’s nuclear deterrent on high alert on Sunday in the face of a barrage of Western reprisals for his war on Ukraine, which said it had repelled Russian ground forces attacking its biggest cities. 

The United States said Mr. Putin was escalating the war with “dangerous rhetoric,” amid signs that the biggest assault on a European state since World War Two was not producing rapid victories, but instead generating a far-reaching and concerted Western response. 

Less than four days after it started, the invasion has triggered a Western political, strategic, economic, and corporate response unprecedented in its extent and coordination. 

“With this war on Ukraine, the world will never be the same again,” EU’s foreign policy chief Josef Borrell wrote in an opinion piece in the Guardian newspaper. 

“It is now, more than ever, the time for societies and alliances to come together to build our future on trust, justice and freedom. It is the moment to stand up and to speak out. Might does not make right. Never did. Never will,” he said. 

The 27-nation European Union on Sunday decided for the first time in its history to supply weapons to a country at war. A source told Reuters it would send 450 million euros ($507 million) of weaponry to Ukraine. Borrell at a news conference said EU’s support would include providing fighter jets. 

The European Union’s chief executive Ursula von der Leyen expressed support for Ukraine’s membership in an interview with Euronews, saying “they are one of us.” Ukraine, a democratic nation of 44 million people, won independence from Moscow in 1991 at the fall of the Soviet Union and has pushed to join the NATO Western military alliance and the EU, goals Russia vehemently opposes. 

The rouble plunged nearly 30% to an all-time low versus the dollar early on Monday, after Western nations on Saturday unveiled harsh sanctions including blocking some banks from the SWIFT international payments system. On Sunday, the president of neutral Switzerland said he expected his government to follow the EU with Russia sanctions and freezing Russian assets. 

NEGOTIATIONS
The Ukrainian president’s office said negotiations with Moscow without preconditions would be held at the Belarusian-Ukrainian border. Russian news agency Tass later on Sunday cited an unidentified source as saying the talks would start on Monday morning. 

As missiles fell on Ukrainian cities, nearly 400,000 civilians, mainly women, and children have fled into neighboring countries, a UN relief agency said. Hundreds were stranded in Kyiv on Sunday waiting for trains to take them west, away from the fighting. 

The capital remained in Ukrainian government hands, with President Volodymyr Zelenskiy rallying his people daily despite Russian shelling of civilian infrastructure. 

The EU shut all Russian planes out of its airspace, as did Canada, forcing Russian airline Aeroflot to cancel all flights to European destinations until further notice. With flight options dwindling, the United States and France urged their citizens to consider leaving Russia immediately. 

The EU also banned the Russian media outlets RT and Sputnik. 

Germany, which had already frozen a planned undersea gas pipeline from Russia, said it would increase defense spending massively, casting off decades of reluctance to match its economic power with military clout. 

British oil major BP BP, the biggest foreign investor in Russia, said it was abandoning its stake in state oil company Rosneft at a cost of up to $25 billion, shrinking its oil and gas reserves in half. 

Several European subsidiaries of Sberbank Russia, majority-owned by the Russian government, were failing or were likely to fail due to reputational cost of the war in Ukraine, the European Central Bank, the lenders’ supervisor, said. 

‘NOT DETERRENCE BUT THREAT’
At least 352 civilians, including 14 children, have been killed and 1,684 people have been wounded, Ukraine’s Health Ministry said. 

Mr. Putin, who has called the invasion a “special operation”, thrust an alarming new element into play when he ordered Russia’s “deterrence forces” — which wield nuclear weapons — onto high alert. 

He has justified the invasion by saying “neo-Nazis” rule Ukraine and threaten Russia’s security — a charge Kyiv and Western governments say is baseless propaganda. 

On Sunday, he cited aggressive statements by NATO leaders and the raft of economic sanctions imposed on Russia by the West. 

“Not only do Western countries take unfriendly measures against our country in the economic dimension — I mean the illegal sanctions that everyone knows about very well — but also the top officials of leading NATO countries allow themselves to make aggressive statements with regards to our country,” he said on state television. 

Mr. Putin previously referred to his nuclear arsenal in a speech announcing the start of the invasion on Thursday, saying Russia’s response to any country that stood in its way would be immediate and carry “consequences that you have never encountered in your history”. 

The EU’s Borrell said Russia had clearly threatened a nuclear attack on countries supporting Ukraine after the invasion. “We are afraid that Russia is not going to stop in Ukraine,” he said. 

US Ambassador to the United Nations Linda Thomas-Greenfield, at the UN Security Council, urged “Russia to tone down this dangerous rhetoric regarding nuclear weapons.” 

A US defense official said Washington was trying to assess what Putin’s announcement meant, but that it increased the danger from any miscalculation. 

Moscow acknowledged that Russian soldiers had been killed and wounded, but said its losses were far lower than those suffered by Ukraine, the Interfax news agency reported. Moscow has not released casualty figures. 

In New York, the UN Security Council convened a rare emergency meeting of the UN General Assembly, or all the United Nations’ 193 member states, for Monday. 

Rolling protests have been held around the world against the invasion, including in Russia, where almost 6,000 people have been detained at anti-war protests since Thursday, the OVD-Info protest monitor said. 

Tens of thousands of people across Europe marched in protest, including more than 100,000 in Berlin. 

BATTLE FOR KHARKIV
A Ukrainian state news agency said that Russian troops had blown up a natural gas pipeline in Kharkiv, Ukraine’s second largest city, sending a burning cloud into the sky. 

Soon after, Russian armor rolled into Kharkiv, in northwest Ukraine, and witnesses reported firing and explosions. But city authorities said the attack had been repelled. 

Reuters was unable to corroborate the information. 

Ukrainian forces also appeared to be holding off Russian troops advancing on Kyiv but the Ukrainian armed forces described Sunday as “a difficult time,” saying Russian troops “continue shelling in almost all directions”. 

Satellite imagery released by the private Maxar Technologies taken on Sunday showed a 5 km (3.25 mile) long convoy of Russian ground forces including tanks approximately 40 miles (64 km) away heading towards Kyiv. Reuters could not independently verify the images. 

“We have withstood and are successfully repelling enemy attacks. The fighting goes on,” Mr. Zelenskiy said in the latest of several video messages from the streets of Kyiv. — Maria Tsvetkova/Reuters

Ukraine’s government raises crypto worth $8 million in crowdfunding appeal

WIRESTOCK/FREEPIK.COM

LONDON — Ukraine’s government has raised almost $8 million in cryptocurrencies after posting appeals on social media for donations of bitcoin and other digital tokens, according to blockchain analysis company Elliptic. 

Ukraine’s official Twitter account made the appeal for cryptocurrency donations on Saturday following the country’s invasion by Russia, posting digital wallets addresses for tokens including bitcoin and ether. 

Ukraine’s Vice-Prime Minister Mykhailo Fedorov tweeted the wallet addresses. “Stand with the people of Ukraine. Now accepting cryptocurrency donations,” wrote Mr. Fedorov, who is also minister of digital transformation. 

The donations came as Russian military vehicles pushed into Ukraine’s second-largest city Kharkiv on Sunday and explosions rocked oil and gas installations on a fourth day of fighting in the biggest assault on a European state since World War Two. 

By 1030 GMT Sunday, the wallet addresses had received crypto worth $7.9 million across almost 11,500 donations, London-based Elliptic said. The company tracks the movement of digital coins on the blockchain, a public ledger that records crypto transactions. 

Ukraine’s ministry of digital transformation did not immediately reply to requests for comment. 

Its crypto crowdfunding appeal is unprecedented. Though some states such as El Salvador have embraced cryptocurrencies, Ukraine’s appeal for direct donations is among the first of its kind. It was not clear what Kyiv would use the funds for. 

Crypto donations to Ukrainian volunteer and hacking groups have also spiked since Russia launched its invasion on Thursday, Elliptic said this week. 

The donations to such groups, some of which have supplied equipment to government forces, grew strongly in January as Russia massed troops near Ukraine’s border ahead of its invasion. — Tom Wilson/Reuters

US sanctions on Russia serve China a sharp reminder of need for its own chips

BRIAN KOSTIUK-UNSPLASH

SHANGHAI — The sweeping restrictions imposed on Russia to block its access to global exports of goods from chips to computers and electronics are likely to accelerate China’s own push for self-reliance in the semiconductor industry, analysts said. 

Following Russia’s invasion of Ukraine on Thursday, Washington —  as part of a package of measures — announced export restrictions which will force companies making high- and low-tech items overseas with US tools to seek a license from the United States before shipping to Russia. 

China, like Russia, lacks advanced chip manufacturing capacity but one of its top long-term policy goals is to establish independence and self-reliance in the semiconductor industry. 

The importance of such self-sufficiency became apparent when Huawei Technologies Co. Ltd.’s smartphone business collapsed following sanctions on the company imposed by the US in 2019 that cut off much of its overseas chip supply and effectively barred it from building its own. 

One chip consultant in China, who requested anonymity due to the sensitivity of the topic, said China will likely “watch and learn” from the sanctions and their impact on Russia. 

“The Russians have a failed chip industry and rely on global semiconductors. So if there are technology issues that come out during the ‘non-invasion’ from sanctions, it reinforces Beijing’s desire to own the technology for itself.” 

Washington further hobbled China’s plans for tech supremacy by expanding sanctions to include the country’s top chipmaker Semiconductor Manufacturing International Corp (SMIC) in 2020. 

SMIC was forced to abandon plans to manufacture some types of advanced chips when the US revoked an export license for Dutch lithography machine maker ASML Holding NV. 

Over the past 10 years, China, the world’s largest importer of chips, has poured funding into semiconductor projects as part of the “Made in China 2025” initiative, which calls for 70% self-sufficiency in core components for critical technologies by the middle of the decade. 

Its chip industry is growing fast, thanks to venture capital funding and political incentives. But the country’s global share of chip exports remains marginal — its fabless chipmakers occupy about 16% of global market share, according to the Semiconductor Industry Association. 

That also limits how much China can do to aid a heavily-sanctioned Russia. 

“China alone can’t supply all of Russia’s critical needs for the military,” a senior US administration official said. 

“China doesn’t have any production of the most advanced technology nodes. So Russia and China are both reliant on other supplier countries and of course US technology to meet their needs.” 

China shipped approximately $10 billion worth of electronics to Russia in 2020, according to UN Comtrade data, accounting for roughly 20% of its total exports. 

Smartphone shipments account for a large chunk of that as Chinese brands such as Xiaomi Corp and Realme are among the top sellers in Russia. 

“Russia’s chip consumption is not big and more than half is probably from China already,” said Doug Fuller, who researches China’s technology policy at the City University of Hong Kong. 

“China may pick up an extra $200 million in exports approximately if chips from elsewhere are completely cut off, and some of the chips Russia needs China can’t make anyway.” — Josh Horwitz/Reuters

[B-SIDE Podcast] QuaranTunes: The local music industry during the pandemic

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The local music industry has had to say goodbye to significant gig spots that just couldn’t survive the pandemic, no matter how well-loved they were.

As the country prepares to ease restrictions, B-Side takes stock of what it’s been like for local and independent musicians to collaborate and perform in a socially distanced world.

Vocalist and rhythm guitarist of the local alternative pop band Any Name’s Okay Renzo R. Lumanog has performed in venues such as Route 196 on Katipunan Avenue and in international music festivals in Taiwan. The band, formed in 2017 in the University of the Philippines Music Circle, garners millions of streams across digital platforms worldwide.

In this B-Side episode, Mr. Lumanog talks to BusinessWorld reporter John Victor D. Ordoñez about venues closing down, people losing jobs, and musicians pursuing their passion.

TAKEAWAYS

Online collaboration is here to stay.

Over the pandemic, musicians used online platforms like Zoom to compose new songs and continue projects since in-person band rehearsals weren’t permitted.

“Collaborating online has taught us how to streamline our music creation process which we believe is a lesson we can take with us after the pandemic,” Mr. Lumanog said, adding that maintaining a connection with his bandmates throughout the lockdown period was a struggle.

“A lot of musicians right now have either stopped making music, and there are some who have released more music than they ever have, there is a scale there,” he added.

The people behind the scenes are unsung heroes.

Local bands have “roadies,” technical teams that accompany musicians and assist in setting up live shows. Roadies suffered the most during the pandemic because of the absence of live events.

“People don’t realize how close roadies are to bands, they go above and beyond just the live shows,” Mr. Lumanog said.

Fundraisers were organized to give back to these people behind the scenes since most of the roadies were in-house staff of famed venues such as Route 196 and Tomato Kick, which were forced to close down.

“It was really heartbreaking to see,” said Mr. Lumanog. “Music, in general, was hit really hard because of this [the pandemic].”

Know who you are as an artist.

“My first piece of advice would be to love the music that you’re making, you need to keep yourself motivated. You also need to love and appreciate your bandmates,” said Mr. Lumanog. “Build connections, not just feeble connections to make extra money, but connections that are lasting that will push you to directions you want to go.”

However, artists should also learn to diversify while staying true to their goals as a band or as an act.

“Diversify in the sense of knowing who you are as a musician, and using platforms like social media to your advantage,” said Mr. Lumanog. “You don’t necessarily need to do the most popular trends in music now just to be relevant … that is not the point of music unless you’re purely into the business side of it. It’s about getting your niche.”

Recorded remotely on Jan. 28, 2022. Produced by John Victor D. Ordoñez, Jino D. Nicolas, and Sam L. Marcelo. Music used with permission from John’s Dirty Old Sneakers.

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What will drive real estate forward in 2022

JLL Philippines reveals trends shaping the country’s property market this year

Continuing to tread the recovery path, the Philippine real estate (RE) sector has shown not just resilience amid pandemic-led disruptions but also stable and positive performance, as well as adaptability. Yet, with more transformations being realized and solidified in the current landscape, individual players must remain agile in meeting what markets and consumers demand.

Operating in the Philippines for more than two decades and currently managing about 4.4 million sq. m. of RE, Jones Lang LaSalle (JLL) continues to provide to the Philippine RE market an unparalleled synergy of services designed to achieve RE ambitions through future-ready approaches.

Looking at the overall landscape, JLL Philippines Head of Research and Consultancy Janlo de los Reyes expects the RE market to move with cautious optimism in 2022, following the performance in leasing activities last year. He stresses that “significant supply expansion is expected to exert pressure in 2022 on office, retail, hospitality, and residential sectors.”

Further into foreseen trends, meanwhile, policies are seen to provide legs for RE’s future growth. These include the Philippine Economic Zone Authority (PEZA) moratorium, which is regarded as a key factor in lease activity, particularly IT-BPM occupiers, which remains a key driver of the office market; and the Retail Trade Localization Act, which is projected to impact real estate activity as the act will hopefully attract more capital for prospective retailers.

JLL also forecasts the Regional Comprehensive Economic Partnership and the amendments to the Public Services Act to provide structural changes in the market, as these are expected to attract foreign investments.

Demand for data centers is also on the rise. Carl Dizon, JLL Philippines’ Senior Analyst for Capital Markets, says that the local data center industry is gearing up for the arrival of hyperscalers. “Hyperscalers and foreign data center operators may be expecting data localization policies as this is a growing trend across Southeast Asia,” says Mr. Dizon.

Moreover, the firm also sees a rising prominence of technology in the built-up environment due to continuous shifts in demand. “Sustainability, and safety and wellness are also accelerating technology adoption across occupiers,” Mr. de los Reyes noted. JLL cites contactless systems, access cards, automated sensors, and air-con filters as examples of adopted property technology (PropTech).

Moreover, Environmental, Social, and Governance (ESG) investments are essential to success in RE.

Nix Garchitorena, JLL Philippines’ Energy & Sustainability Services manager, emphasized the importance of a continued push for actionable steps in achieving sustainability goals. Out of the top 50+ clients globally, she explained, 96% have set ambitious, publicly-stated sustainability goals; and 88% of them have set those goals but will expire by 2025. Only 19% have a clear, real estate-specific sustainability action plan, and JLL’s goal in 2022 is to narrow the gap between publicly-stated sustainability goals and specific action plans.

Demand for green certifications is also on the rise, with both new and old offices making efforts to meet this demand. There’s also a push from the regulation side, Ms. Garchitorena added, with the Securities and Exchange Commission requiring all publicly listed companies to produce an annual sustainability report.

Given these apparent demands to update buildings, asset enhancement is seen as a solution for occupiers to consider.

“Over 50% of buildings in major cities are over 20 years old and most have not been upgraded to meet post-COVID requirements. As vacancy rates increase and rental rates decline, a ‘do nothing’ approach will not preserve or enhance value,” JLL Philippines’ Head of Project Development and Services Calum Swinnerton explained, adding that health and wellness, human experience, sustainability, and technology are areas whose enhancement focuses changed since COVID-19 began.

In conclusion, JLL Philippines’ Country Head Joey Radovan says that this year will definitely be more positive than last year. “The only thing that may slow down transaction decisions is the elections since clients are interested in how policies and regulations shaping real estate may affect their operations,” said Mr. Radovan.

Check out how JLL’s expertise can work for RE clients by visiting http://www.jll.com.ph/en/contact-us/.

 


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