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Australia COVID numbers surge as Omicron outbreak strains domestic politics

SYDNEY – Australia recorded another surge in COVID-19 infections on Tuesday as an outbreak of the highly infectious Omicron variant disrupted a staged reopening of the economy, while state leaders argued over domestic border controls.

The three most populous states, New South Wales (NSW), Victoria and Queensland, reported just under 10,000 new cases between them the previous day, putting the country on course to eclipse the previous day’s record total of 10,186 cases.

There were five COVID-19 deaths reported, although the authorities did not specify whether any were related to the Omicron variant.

The country’s five other states and territories, which have also been experiencing flareups of the virus, were yet to report figures.

The Omicron variant, which medical experts say is more transmissable but less virulent than previous strains, began to spread in Australia just as the country got underway with its plan to reopen after nearly two years of stop-start lockdowns.

With the resumption of rising case numbers – despite a vaccination rate of more than 90% for Australians aged over 16 – the country’s state leaders have brought back some containment measures like mandatory mask-wearing and QR code check-ins at public venues.

But the rising case numbers have led to mandatory self-isolation for thousands of workers in the hospitality, entertainment and airline sectors – the sectors worst hit by lockdowns – resulting in cancelled theatre shows, closed restaurants and postponed flights.

The new outbreak has also fuelled a resumption of fractious domestic politics which defined much of the pandemic as some states resist calls to remove internal border controls.

NSW, home to Sydney and a third of Australia‘s 25 million population, called on neighbouring Queensland to shift from mandatory clinical testing to on-the-spot rapid antigen testing for people travelling to the tourist-popular state following complaints of hours-long wait times.

NSW Health Minister Brad Hazzard said a quarter of his state’s PCR tests were “tourism tests”, causing enormous pressure of the health system, extraordinary long testing queues and wait times for results, sometimes for days.

In one case, a Sydney testing clinic sent incorrect negative test results to some 1,400 people. Hazzard said the bungle was the result of “human error, and when people are under presure, human errors are more frequent”.

Queensland has promised to review its border testing rules from Jan. 1, but Hazzard urged Queensland to drop the rule immediately.

Queensland Health Minister Yvette D’Ath did not respond to Hazzard’s comments about border testing at a news conference, but said the state would remove another testing rule for interstate arrivals: people arriving in the state would no longer have to take a virus test five days after arriving.

Australia‘s international border remains effective closed, but Australian nationals may return without mandatory hotel quarantine and the country has said it would allow certain skilled workers and foreign students in. – Reuters

U.S. President Biden signs $770 billion defense bill

Official White House Photo by Lawrence Jackson

U.S. President Joe Biden signed into law the National Defense Authorization Act, or NDAA, for fiscal year 2022, which authorizes $770 billion in defense spending, the White House said on Monday.

Earlier this month, the Senate and the House of Representatives voted overwhelmingly for the defense bill with strong support from both Democrats and Republicans for the annual legislation setting policy for the Department of Defense.

“The Act provides vital benefits and enhances access to justice for military personnel and their families, and includes critical authorities to support our country’s national defense,” Biden said in a statement after signing the bill into law.

The NDAA is closely watched by a broad swath of industry and other interests because it is one of the only major pieces of legislation that becomes law every year and because it addresses a wide range of issues. The NDAA has become law every year for six decades.

Authorizing about 5% more military spending than last year, the fiscal 2022 NDAA is a compromise after intense negotiations between House and Senate Democrats and Republicans after being stalled by disputes over China and Russia policy.

It includes a 2.7% pay increase for the troops, and more aircraft and Navy ship purchases, in addition to strategies for dealing with geopolitical threats, especially Russia and China.

The NDAA includes $300 million for the Ukraine Security Assistance Initiative, which provides support to Ukraine’s armed forces, $4 billion for the European Defense Initiative and $150 million for Baltic security cooperation.

On China, the bill includes $7.1 billion for the Pacific Deterrence Initiative and a statement of congressional support for the defense of Taiwan, as well as a ban on the Department of Defense procuring products produced with forced labor from China’s Xinjiang region.

It creates a 16-member commission to study the war in Afghanistan. Biden ended the conflict – by far the country’s longest war – in August.

 

GUANTANAMO BLUES

Even as the White House heralded passage of the NDAA, it criticized provisions in the bill barring the use of funds to transfer Guantánamo Bay detainees to the custody of certain foreign countries or into the United States unless certain conditions are met.

“It is the longstanding position of [the White House] that these provisions unduly impair the ability of the executive branch to determine when and where to prosecute Guantánamo Bay detainees and where to send them upon release,” Biden said in a statement.

Set up to house foreign suspects following the Sept. 11, 2001, attacks on New York and Washington, the prison came to symbolize the excesses of the U.S. “war on terror” because of harsh interrogation methods that critics say amounted to torture.

Biden has said he hopes to close the prison before his tenure is up but the federal government is still barred by law from transferring any inmates to prisons on the U.S. mainland. Even with Democrats controlling Congress now, Biden has majorities so slim that he would struggle to secure legislative changes because some Democrats might also oppose them. – Reuters

Iran nuclear talks resume with Tehran focused on sanctions relief

STOCK PHOTO - Pixabay.com

VIENNA – Indirect talks between Iran and the United States on salvaging the 2015 Iran nuclear deal resumed on Monday with Tehran focused on one side of the original bargain, lifting sanctions against it, despite scant progress on reining in its atomic activities.

The seventh round of talks, the first under Iran‘s new hardline President Ebrahim Raisi, ended 10 days ago after adding some new Iranian demands to a working text. Western powers said progress was too slow and negotiators had “weeks not months” left before the 2015 deal becomes meaningless.

Little remains of that deal, which lifted sanctions against Tehran in exchange for restrictions on its atomic activities. Then-President Donald Trump pulled Washington out of it in 2018, re-imposing U.S. sanctions, and Iran later breached many of the deal’s nuclear restrictions and kept pushing well beyond them.

“If we work hard in the days and weeks ahead we should have a positive result…. It’s going to be very difficult, it’s going to be very hard. Difficult political decisions have to be taken both in Tehran and in Washington,” the talks‘ coordinator, European Union envoy Enrique Mora, told a news conference.

He was speaking shortly after a meeting of the remaining parties to the deal – Iran, Russia, China, France, Britain, Germany and the European Union – formally kicked off the round on Monday evening.

“There is a sense of urgency in all delegations that this negotiation has to be finished in a relatively reasonable period of time. Again, I wouldn’t put limits but we are talking about weeks, not about months,” Mora said.

Iran refuses to meet directly with U.S. officials, meaning that other parties must shuttle between the two sides. The United States has repeatedly expressed frustration at this format, saying it slows down the process, and Western officials still suspect Iran is simply playing for time.

The 2015 deal extended the time Iran would need to obtain enough fissile material for a nuclear bomb, if it chose to, to at least a year from around two to three months. Most experts say that time is now less than before the deal, though Iran says it only wants to master nuclear technology for civil uses.

 

END OF THE ROAD

“The most important issue for us is to reach a point where, firstly, Iranian oil can be sold easily and without hindrance,” Iranian media quoted Foreign Minister Hossein Amirabdollahian as saying.

Mora, however, said both the lifting of sanctions and Iran‘s nuclear restrictions would be discussed.

Iran insists all U.S. sanctions must be lifted before steps are taken on the nuclear side, while Western negotiators say nuclear and sanctions steps must be balanced.

U.S. sanctions have slashed Iran‘s oil exports, its main revenue source. Tehran does not disclose data, but assessments based on shipping and other sources suggest a fall from about 2.8 million barrels per day (bpd) in 2018 to as low as 200,000 bpd. One survey put exports at 600,000 bpd in June.

Mora said he decided to reconvene the talks during many officials’ holidays between Christmas and the New Year so as not to lose time, but he added that talks would stop for three days as of Friday “because the facilities will not be available”, referring to the luxury hotel hosting most meetings.

When the seventh round wrapped up, incorporating some Iranian demands, negotiators from France, Britain and Germany said in a statement: “This only takes us back nearer to where the talks stood in June”, when the previous round ended.

“We are rapidly reaching the end of the road for this negotiation,” they added. – Reuters

Five reasons why you should invest in a pre-selling condo

The pandemic has called for a worldwide habit of practicing wellness while staying at home. This is why people are making big changes in curating their living spaces into a place where all needs can thrive – personal, health-wise, and work-related.

Given that we’re all in the “now normal,” searching for your future home requires a new set of standards. Going for a pre-selling condo investment is an excellent choice especially if you are still saving up and planning for a new chapter in your life. Thinking long-term, this will not only serve as an income-generating asset but also a place where you can settle down when the time comes.

With these said, you need to know what makes a property worth the wait and deserving of your hard-earned money.

  1. A wide array of amenities and features

Not only will it be an added financial asset when the turnover day comes, but you can also come home to retreat and recharge with amenities surrounded by verdant landscapes for when you choose to keep it for you or your loved ones to settle in.

At this point, we are all certainly craving a significant time outdoors to be one with nature. Imagine a home that is also your very own breathing space. This and more can be found and experienced in Woodsville Crest.

If you’re one to seek refuge in relaxing and picturesque sceneries, you can picture yourself basking in nature’s beauty everyday in this standout property. Pegged as your oasis South of Metro, it prides itself on open spaces that empower your leisure activities such as the jog trail, pools, grilling stations, veranda, and the resort-like clubhouse featuring a lounge area.

What’s more, there are the building features that support the residents’ hobbies and other life pursuits, including designated bike parking slots and storage solutions.

  1. Upgraded lifestyle in a future-ready home

Purchasing a condo requires a big portion of your hard-earned money and for it to really stand out as an investment, it must have superb and impressive selling points that can make you see yourself living your best life inside it.

At Woodsville Crest, one can experience a lifestyle they can only dream of before. Every unit is all for your convenience and efficiency, showcasing fiber-optic readiness which will entitle you to faster connectivity and enhanced to seamless control of the Smart Home features across devices and appliances.

Studio units already come with a dedicated space for work-from-home setups for those working remotely. Others may even utilize it for recreation purposes.

For the one-bedroom unit types, growing families can take advantage of its built-in kitchen and bath upgrades such as additional storage and shower enclosures. Two-bedroom units, on the other hand, have all of the above-mentioned upgrades as well as a stylish walk-in closet.

  1. Access to life’s essentials

Now that you have promising amenities and home innovations in check, another important factor to look for in a pre-selling condo is its accessibility.

Staying close to the places and people that matter is also a promise at Woodsville Crest. Strategically located in Merville, Paranaque, and within the established neighborhood of Woodsville Complex, you have easy access to life’s essentials.

It’s in close proximity to various health, BPO, and bank companies as well as major thoroughfares like EDSA, SLEX, C5, and C6, and two main highways. If you’re planning a quick trip to nearby provinces such as Tagaytay, Laguna, and Batangas, this is also a familiar and convenient location to come from.

  1. Introductory price advantages and promotions

Acquiring a condo during its pre-selling phase is considered a wiser investment because of the huge savings you can get. Units sold while under construction have lower prices because of multiple promotions such as introductory prices, launch discounts, and even flexible payment terms. Add to that the value appreciation by the time the development is built and ready to welcome its new homeowners.

RLC Residences recently launched a nature-inspired development South of Metro, Woodsville Crest. It’s the last addition to the Woodsville Complex midrise condominiums in Merville, Paranaque. Studio, one-, and two-bedroom units are all available for pre-selling, which means you can take advantage of the introductory prices, 5% launch discount, and stretched payment schemes available for a limited-time offering.

As we continue navigating the pandemic, we must look for ways to maximize our resources not just to what can be the most profitable but beneficial to our physical and mental health as well. By buying a pre-selling condo, you’ll have ample time to prepare for what the next chapter of your life entails.

  1. Built to last by an award-winning developer

A tried and trusted developer is among the primary considerations before signing that lease. Given the amount you need to produce to purchase a condo unit, it’s only right to be 100% sure that the company you’re putting your money into is trusted and offers top-notch properties.

RLC Residences is a brand you can put your faith into as they carry a wide portfolio that is a testament to their expertise. As the residential arm of Robinsons Land Corporation, RLC Residences brings with it the company’s three-decade expertise of building beautiful and well-built homes, as seen in all of its residential developments strategically located in Metro Manila and Cebu.

This year alone, the brand recorded its most number of distinctions to date from various award-giving bodies in the country and across the region. Led by Robinsons Land Corporation’s President and CEO, Mr. Frederick D. Go, there’s no stopping RLC Residences from changing the game of real estate in the country. He was recently the recipient of the Property Man of the Year award from the FIABCI Philippines Property and Real Estate Awards.

Also a notable accolade for RLC Residences was being hailed Philippines Developer of the Year by the DOT Property Awards 2021 for its premier projects, among others.

These said properties adhere to RLC Residences’ brand promise of raising the standards of living for an elevated lifestyle experience, allowing residents to live smart and productive while connecting them to their loved ones and more opportunities available.

If you dream to live in a residential sanctuary where you can experience peace and quiet without being left out of life’s possibilities, then this might be the right moment for you to start making that a reality.

Take advantage of the exclusive offerings and deals you can score as early as now when you connect with an RLC Residences Property Specialist. Learn more about Woodsville Crest and other top-notch developments when you visit rlcresidences.com and follow its social media pages at facebook.com/RLCResidencesPH and at instagram.com/rlc_residences for promos and other updates.

 


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Roxas Blvd’s partial closure opposed

By Arjay L. Balinbin, Senior Reporter

A TRUCKERS’ GROUP on Monday expressed alarm over the plan to close a portion of Roxas Boulevard, as the Department of Public Works and Highways (DPWH) rehabilitates a damaged drainage structure that could take two to three months, saying this would badly affect business.

At the same time, the Philippine Exporters Confederation, Inc. (Philexport) urged the authorities to consider other ways to repair the damaged structure without implementing full closure of the southbound lane of Roxas Boulevard.

Metropolitan Manila Development Authority (MMDA) Chairman Benjamin “Benhur” de Castro Abalos, Jr. said in a statement that among the possible solutions being eyed is “for the container vans to be carried on the barge and will be transported from MICT (Manila International Container Terminal) going to the Cavite Gateway Terminal in Tanza, Cavite.”

The MMDA said the rehabilitation of the damaged Libertad Drainage Main Box Culvert in front of Libertad Pumping Station in Pasay City requires the immediate closure of the southbound portion of Roxas Boulevard.

“Approximately 1,000 cargo trucks and trailers per day are traversing the Roxas Boulevard southbound direction alone,” it said in a statement.

In a phone interview, Confederation of Truckers Association of the Philippines President Maria B. Zapata said this is worrisome, as some operators using the road, with 10,000 units of trucks, could be affected.

Kung ang lahat ng kargamento going to Cavite is via a barge na, nasan na ’yung negosyo ng trucking? Eh di wala na, hindi ba? Pinapatay nila ’yung hanapbuhay ng truckers (If all the cargo going to Cavite will be done via barge, what will happen to the trucking business? It will be gone, right? They are killing the livelihood of truckers),” she said.

She said the DPWH and the MMDA informed them about the planned road closure before Christmas.

Instead of full closure, Ms. Zapata said the group is urging the DPWH and MMDA to allow the use of part of the northbound lanes.

“Our suggestion is ’yung northbound na apat na lanes ay baka naman pwedeng gawing two lanes ’yung papuntang south, at dalawa papuntang north para at least may outlet para naman hindi ma-congest ’yung papuntang South Superhighway (Our suggestion is for two out of the four northbound lanes to be used as southbound lanes, so there would be no congestion going to South Superhighway),” she added.

For its part, the MMDA said Mr. Abalos has “yet to determine if a portion of the southbound direction of Roxas Boulevard fronting HK Sun Plaza will be totally or partially closed.”

“The structural integrity is at stake. Hence, we are appealing for the public’s understanding of the inconvenience the road closure would cause. This is temporary. The construction is only for three months,” Mr. Abalos said.

Ms. Zapata said the truckers’ group wants to further discuss the matter with the Metro Manila Council of the MMDA. The council is composed of Metro Manila mayors and representatives from government agencies, including the Department of Transportation (DoTr) and DPWH.

In a separate phone interview, Philexport President Sergio R. Ortiz-Luis, Jr. said: “There must be a better way than closing it… Can you imagine we are trying to recover, andami-daming problema at isasara mo (we have so many problems and then you close it)… There must be other ways of doing it without having to close it.”

“They should present a narrative of what has to be done, what are the pros and cons, and what are the other options,” he added.

DPWH South Manila district engineer Mikunug D. Macud said in a phone interview that the project should really be implemented as soon as possible.

“The project is P67 million, pero kung meron pang (but if there’s) additional request na  another P40 million, so more or less nasa P100 million,” he said, referring to the project cost.

Mr. Macud also expressed doubt that the total closure would be implemented considering the current situation of transporting goods during the pandemic. However, total closure would mean the rehabilitation of the structure would be done by first week of March, he added.

He said the DPWH is hoping to start work by the first week of January.

He also stressed that the concerns of truckers will be taken into consideration.

Palace postpones signing of 2022 budget — Sotto

COURTESY OF JILSON TIU/GREENPEACE PHILIPPINES
The Budget department is set to release another P1 billion from the President’s contingent fund to assist local government units (LGUs) affected by typhoon Odette. A landslide caused by Typhoon Odette in Surigao City in this photo provided by Greenpeace Philippines. COURTESY OF JILSON TIU/GREENPEACE PHILIPPINES

SENATE PRESIDENT Vicente C. Sotto III said the expected Tuesday signing of the proposed P5.024-trillion national budget for 2022 will be postponed, a delay that could affect financial markets looking for a spending plan that would support economic recovery.

“I just received word now of the postponement. No reason given,” Mr. Sotto told reporters in a Viber group on Monday.

Budget Officer-in-Charge Tina Rose Marie L. Canda said at a public briefing on Monday that President Rodrigo R. Duterte was expected to sign the proposed budget by Tuesday afternoon, with some provisions up for veto.

Items that will be vetoed are “very few,” she said. “I don’t think I’m in a position to discuss it at this point.”

Congress on Dec. 15 ratified the Bicameral Conference Committee report on the national budget.

Mr. Duterte must sign the General Appropriations Bill before Dec. 31 to ensure that the government will not operate on a reenacted budget.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the timely enactment of the national budget would have a positive impact on the economy and financial markets.

“The national budget, alongside the extension of the validity of unused funds into the following year, would support increased government spending, especially on infrastructure as a major pillar of the country’s economic recovery,” he said in a Viber message.

Delays to signing of the national budget could slow down economic recovery due to lower spending on infrastructure, as well as weigh on sentiment in local financial markets, Mr. Ricafort added.

Meanwhile, Ms. Canda said another P1 billion is set for release from the president’s contingent fund on Monday to assist local government units (LGUs) affected by typhoon Odette. The government released P1 billion from the same fund on Friday.

The money will assist affected LGUs in Western, Central and Eastern Visayas, Mimaropa (consisting of the provinces of Mindoro, Marinduque, Romblon, and Palawan), Northern Mindanao and the Caraga Administrative Region.

Mr. Duterte last week declared a state of calamity in these six regions affected by the typhoon to speed up aid delivery and relief efforts, setting a P10-billion spending plan for typhoon recovery efforts.

Another P4 billion in aid will be released to local governments to assist their constituents before the end of the year, Ms. Canda said. This fund will come from excess revenues charged against unprogrammed appropriations, she said in a Viber message.

In total, government funds for release before yearend will reach P6 billion, while another P4 billion will be released next year.

If Mr. Duterte signs the national budget soon, the funding for Odette recovery efforts next year could be released as soon as Jan. 3. — Jenina P. Ibañez with inputs from Alyssa Nicole O. Tan

Foreign investments in financial services sought

By Jenina P. Ibañez, Senior Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) wants foreign investors to invest in financial services in the Philippines by bringing in new technology and technical expertise.

“As we build our digital finance ecosystem, we encourage foreign investors who may bring advanced technologies and technical expertise to take advantage of untapped potential in the financial services space and be our partners in achieving our economic growth and financial inclusion objectives,” BSP Governor Benjamin E. Diokno said.

The Philippine central bank in a press release on Monday said technology and expertise will support the competitiveness of local banks.

Technology would also allow banks to expand access to new markets through partnerships, BSP added. This market expansion is expected to benefit financial consumers.

Under its digital payments transformation roadmap, the BSP plans to convert half of the volume of retail payments into digital transactions and onboard 70% of Filipino adults into the formal financial system by 2023.

Its financial inclusion survey in 2019 found that 71% of Filipino adults have no bank accounts, while more than 30% of cities and municipalities had no banking offices as of the third quarter of last year.

“By catering to the unserved and underserved, financial technology service providers may tap into a wide client base, diversify revenue sources, and secure new growth opportunities in the country, thereby improving efficiency in banking operation,” BSP said.

A Philippine Institute for Development Studies (PIDS) discussion paper released earlier this month said the government needs to support the financial technology (fintech) industry in meeting its funding and talent development needs for the sector to grow.

The availability of venture capital, it said, would support the growth of fintech startups.

‘MASSIVE COMPETITION’
Meanwhile, the fintech industry is anticipating a highly competitive business environment in 2022 as more services and products are set to be launched, an industry group official said.

“The Fintech Alliance.PH sees 2022 as an era of massive competition for the fintech and digital banking industry. As more and more digital unicorns enter the playing field, we expect to have an even more competitive market,” Fintech Alliance.ph Angelito M. Villanueva said in a Viber message last week.

“New services, features and products will be on the development pipeline which we expect to be launched this coming year.”

Fintech business activities have increased during the pandemic as lockdown restrictions limit face-to-face transactions.

The Fintech Philippines Report 2022 found that the country now has 222 financial technology companies. Launched by the alliance and Fintech News Philippines, the report said that 27% of the companies work on lending while 20% offer payments services. Another 13% offer e-wallet products and 12% are cryptocurrency or blockchain firms.

Mr. Villanueva said more Filipinos are using digital payments and cryptocurrency transactions.

“This scenario is a good indication that the industry will experience more revenue growth in the coming year especially with recent developments in the industry,” he said.

These developments include the Philippine central bank’s new regulatory framework for digital banks, he said. Mr. Villanueva noted the BSP’s open finance framework would support more financial inclusion.

But cybersecurity threats are also growing, prompting companies to ramp up security and fraud management systems.

“We have seen more sophisticated means by which hackers and other fraud infiltrate the processes and systems even of leading, digitized universal and legacy banks,” Mr. Villanueva said. “Cyberattacks such as scams and cyber fraud will always be a constant threat to the health of the digital finance ecosystem.”

Meanwhile, government agencies have also said that they plan to tighten taxation and regulation of fintech companies amid efforts to broaden the tax base. The Bureau of Internal Revenue plans to gather information that would help the agency identify fintech firms not explicitly covered by existing rules.

This year’s 10 worst climate disasters cost $170 billion

A HERDSMAN from the Rendille ethnic group stands next to the carcass of his donkey who died due to an ongoing drought, near the town of Kargi, Marsabit county, Kenya, Oct. 9. — REUTERS

TEN of this year’s most destructive weather events cost a combined $170 billion in damages, according to a new study.

Hurricane Ida, a tropical storm that pummeled much of the eastern US with lashing rain in August, killed at least 95 people and cost the economy $65 billion. A month earlier, floods in Europe caused 240 deaths and an economic loss of $43 billion, according to research published by UK charity Christian Aid. Floods in China’s Henan province in July killed more than 300 and cost in excess of $17 billion.

“The costs of climate change have been grave this year,” said Kat Kramer, Christian Aid’s climate policy lead and author of the report. “It is clear that the world is not on track to ensure a safe and prosperous world.”

This year is expected to be the sixth time global natural disasters have cost more than $100 billion, the report stated, citing insurer Aon Plc.  All six of those years have happened since 2011.

The report’s authors estimated the damage based on insured losses, meaning the true costs of these disasters are likely to be even higher. Calculations are usually costlier in richer countries due to higher property values and insurance, while some of this year’s deadliest weather events hit poorer counties that contributed little to global warming.

South Sudan has been struck by floods that forced almost a million people to leave their homes, while East Africa has been ravaged by drought. That highlights the injustice of the climate crisis, said Christian Aid, which warned that such events will continue in the absence of concrete action to slash emissions.

Mohamed Adow, director of Kenya-based think tank Power Shift Africa, said the continent has “borne the brunt” of some of the deadliest, most expensive climate impacts. Severe droughts in East Africa, which are expected to last until mid-2022, are “pushing communities to the brink,” Mr. Adow warned.

The Paris Agreement on global warming, which aims to hold the increase in global temperatures to below 1.5 degrees Celsius, will not achieve its goals unless more urgent action is taken, according to the report. More needs to be done in 2022 to provide financial help to vulnerable nations, including a fund to deal with the damage caused by climate change — something that was not delivered at this year’s global climate talks in Glasgow, according to the study.

“It was bitterly disappointing to leave COP26 without a fund set up to help people who are suffering from permanent losses from climate change,” said Nushrat Chowdhury, Christian Aid’s climate justice advisor in Bangladesh. “Bringing that fund to life needs to be a global priority in 2022.” — Bloomberg

CTS Global plans P1.38-B initial public offering

CTS GLOBAL Equity Group, Inc. is planning a P1.375-billion initial public offering (IPO) by February next year, mainly to use proceeds for the growth of its trading operations.

“The main reason for the company’s IPO is to scale its global trading,” CTS Global said in its preliminary prospectus dated Dec. 3.

“For the past few years, the company has consistently generated profits from its assets under management but was not able to maximize its bottomline profit due to overhead expenses,” it added.

The Philippine-based global trading firm is planning to offer up to 1.375 billion primary common shares for up to P1 each.

CTS Global, formerly Citisecurities, Inc., engages in trading in the local bourse as well as in the stock markets of the United States, Hong Kong, and Japan. Its current 30 individual traders manage a total capital of P550 million.

“For the past decade, the Company maintained its capital stock at P200 million, only raising it to P500 million in the last quarter of 2019 and an additional P50 million in 2020,” CTS Global said.

Its traders’ technique falls under the rules of the FTSR Trading Framework, which comprises Fundamentals Analysis, Technical Analysis, Sentiment, and Risk Management.

The company will continue to employ its existing strategy to scale traders’ accounts, however, expenses will remain the same. It said this will lead to a “promising opportunity for its operating leverage.”

“A further increase in capital to be deployed in the global markets is the key to CTS Global taking it to the next level,” the company said.

Apart from using P1.235 billion to scale global trading operations, the company plans to use net proceeds from the IPO to expand its client accounts management segment and for general corporate purposes.

CTS Global will be using P20 million to hire more talent as it builds its client accounts management segment. Meanwhile, P100 million “will be used for any adjustments needed going forward, depending on the country’s pandemic recovery.”

“This may be in the form of developing the company-owned office space to the extent necessary or further improvements in the digital systems for the work-from-home arrangement,” CTS Global said.

It is looking to conduct its offer period from Feb. 21 to 28.

CTS Global plans to list on the small, medium, and emerging  board of the Philippine Stock Exchange by March 9 under the trading symbol “CTS.”

The company tapped SB Capital Investment Corp. as the issue manager, underwriter, and bookrunner of the offer. — Keren Concepcion G. Valmonte

Fruitas Holdings eyes P309-M IPO for Balai subsidiary

FRUITAS HOLDINGS, Inc.’s wholly owned subsidiary Balai ni Fruitas, Inc. is looking to tap the stock market with a P309-million initial public offering (IPO), subject to regulatory approvals and market conditions.

In a statement on Monday, Fruitas Holdings said Balai ni Fruitas’ IPO aims to raise funds for the subsidiary’s store network expansion, commissary setup, and for future acquisitions.

“We evaluated several capital-raising options to fund the next phase of growth of [Balai ni Fruitas],” Fruitas Holdings President and Chief Executive Officer Lester C. Yu said.

He said the group decided to undertake an IPO for Balai ni Fruitas given “the significant growth prospects of the bakery sector, distinct from the kiosks within Fruitas Holdings.”

Mr. Yu said the move would provide the unit with its own resources “to take advantage of the opportunities presented to it.”

The offer is subject to the regulatory approval of the Securities and Exchange Commission and the Philippine Stock Exchange (PSE).

Balai ni Fruitas currently has three brands under its belt, namely: Balai Pandesal, Buko ni Fruitas, and Fruitas House of Desserts.

“The primary proceeds will be used to expand [Balai ni Fruitas’] store network in major Philippine cities and establish its own commissary to serve more customers,” Mr. Yu said.

The company has a combined 46 Buko ni Fruitas and Fruitas House of Desserts stores. Both brands sell fruit-based desserts in malls and commercial centers.

Meanwhile, Balai ni Fruitas acquired some of Balai Pandesal Corp.’s assets in June this year and has since increased Balai Pandesal outlets to 23 as of end-September from only having five stores. Balai Pandesal sells baked goods via community stores in neighborhoods and central business districts.

Balai ni Fruitas is planning to grow the number of Balai Pandesal outlets to 100 stores across the country by the end of next year and to 150 by end-2023.

“Part of the new capital will also be utilized to explore the possibility of acquiring other baked goods firms to broaden the company’s current product offerings,” Mr. Yu said.

Balai ni Fruitas plans to offer up to 325 million primary common shares to the public for up to 75 centavos per share. 

In a separate disclosure, Fruitas Holdings’ board of directors also approved to sell up to 50 million secondary common shares of Balai ni Fruitas to increase the IPO size and its public float. It is also allotting 37.5 million secondary shares as an overallotment option.

Should the overallotment option be exercised, Balai ni Fruitas’ public float may reach 27.6%.

The company is planning to run the offer period in March next year and aims to list on the PSE’s small, medium, and emerging board before the end of the first quarter.

Balai ni Fruitas mandated First Metro Investment Corp. as the issue manager, bookrunner, and underwriter for its IPO.

Mr. Yu said the Balai ni Fruitas IPO “will also be beneficial for Fruitas Holdings shareholders as it unlocks the value” of the subsidiary. He added that Fruitas Holdings will remain the controlling shareholder of Balai ni Fruitas and will continue to benefit from its profits.

On Monday, shares in Fruitas Holdings at the stock market declined 1.63% or two centavos to close at P1.21 apiece. — Keren Concepcion G. Valmonte

Peso weakens as surge in virus cases poses risks to recovery

THE PESO weakened against the dollar on Monday as an Omicron variant surge in various countries weigh on economic recovery.

The local currency closed at P50.23 per dollar on Monday, slipping from its P50.04 finish on Friday, data from the Bankers Association of the Philippines showed.

The peso opened at P50.05 versus the dollar. Its weakest showing was at P50.26, while its intraday best was at P50.05 against the greenback.

Dollars exchanged rose to $1.01 billion on Monday from $933.05 million on Friday.

The local currency weakened against the dollar on the increase of new Omicron variant cases of the coronavirus disease 2019 (COVID-19), which have prompted governments to set new restrictions, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Peso [was] also weaker after the peak in Christmas holiday spending may have already been seen already, together with the conversion of OFW (overseas Filipino workers) remittances to pesos to finance the said holiday spending,” he said.

“But there may still be another round of spending towards the New Year holiday weekend, as an offsetting positive factor for the peso.”

Thousands of flights globally were canceled over the weekend due to the Omicron variant. The surge in cases has pushed countries like the Netherlands to impose new lockdowns.

The Philippines has detected its fourth Omicron case.

Mr. Ricafort added that the peso was also weaker as sentiment is still weighed by the damage from Typhoon Odette, which could slow economic growth and temporarily increase prices.

“Furthermore, reconstruction activities in hard-hit areas by Typhoon Odette could entail increased importation activities such as construction materials among others,” he said.

Economists have said that agriculture and productivity losses from the typhoon could significantly impact fourth-quarter expansion.

“The peso weakened amid growing rate hike expectations after the Fed’s preferred inflation gauge continued to increase in November,” a trader said in an e-mail.

“The local currency might depreciate further on domestic concerns over the increasing new COVID-19 cases in the past few days.”

Mr. Ricafort said the peso exchange rate could range between P50.1 to P50.3 on Tuesday, while the trader said exchange rates might move between P50.15 and P50.35. — Jenina P. Ibañez

ERC clears commercial run of GNPower Dinginin’s first unit

THE Energy Regulatory Commission (ERC) has issued a certificate of compliance to GNPower Dinginin Ltd. Co., allowing the company to commercially operate the first unit of its power plant.

In a statement on Monday, ERC Chairperson and Chief Executive Agnes VST Devanadera said with the issuance of the certificate, the company can now inject power to the Luzon grid and “provide the much-needed additional power supply to meet the increasing demand for power this holiday season and up to the election period.”

GNPower Dinginin is a joint venture of the Ayalas’ energy arm, Aboitiz Power Corp.’s subsidiary Therma Power, Inc., and Power Partners Ltd. Co.

The supercritical coal-fired power plant has two units, each with a net capacity of 668 megawatts. It is located at the coastal area of Sitio Dinginin, Brgy. Alas-Asin, Mariveles, Bataan.

The five-year certificate covers only the plant’s unit 1. The second unit is under construction and is still subject to complete test and commissioning.

GNPower Dinginin was allowed by grid operator National Grid Corp. of the Philippines and the Department of Energy to move its internal test for the first unit earlier to Nov. 30 to support the grid during the Malampaya gas field’s outage.

The grant of certificate to will augment the country’s generation capacity, Ms. Devanadera said, describing the move as a proactive effort by the commission, particularly in cases where power demand outweighs supply.

She added that the ERC sees to it that compliance certificate applications are approved “as soon as all legal, technical and financial requirements have been satisfied in order to ensure that supply matches the demand and to promote a sustainable power supply.” 

Meanwhile, AboitizPower announced on Monday the retirement of Jaime Jose Y. Aboitiz as the company’s executive vice-president and chief operating officer effective on Jan. 1, 2022.

Shares in AboitizPower inched down 1.29% or 40 centavos to close at P30.50 apiece on Monday. — Marielle C. Lucenio