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Russia to set out security demands at NATO meeting

BRUSSELS, Jan 12 (Reuters) – Russia is set to lay out its demands for security guarantees in Europe to NATO‘s 30 allies on Wednesday, following intense talks with the United States in Geneva that showed the two sides have major differences to bridge.

The NATORussia Council at allied headquarters in Brussels is part of a broader effort to defuse the worst East-West tensions since the Cold War, triggered primarily by a confrontation over Ukraine, which the United States says Russia is planning to invade.

Moscow dismisses such claims, though it is massing troops near the Ukrainian border.

NATO diplomats say the Western alliance is ready to negotiate with Moscow on increasing openness around military drills and to avoid accidental clashes that could spark conflict, as well as arms control regarding missiles in Europe.

But the NATO allies say that many of Russia‘s demands, laid out in two draft treaties in December, are unacceptable, including calls to scale back the alliance’s activities to 1990s era levels and promising not to take in new members.

“Let’s be clear: Russian actions have precipitated this crisis. We are committed to using diplomacy to de-escalate the situation,” U.S. envoy to NATO Julianne Smith told reporters on Tuesday evening.

“We want to see … Russia pulling back its forces,” she said of the 100,000 troops stationed near Ukraine.

Bridling at NATO‘s expansion eastward into its old Soviet sphere of influence, the Kremlin sees the U.S.-led alliance’s deterrents and military modernisation as a threat.

Russia staged live-fire exercises with troops and tanks near the Ukrainian border on Tuesday while sounding a downbeat note over prospects for more talks with the United States.

NATO Secretary-General Jens Stoltenberg will chair Wednesday’s talks from 0900 GMT with the alliance’s 30 ambassadors and Russian Deputy Foreign Minister Sergei Ryabkov. The allies are expected to voice concerns about what they say are covert and cyber attacks, as well as electoral interference, on the European Union and the United States.

Russia denies any wrongdoing. – Reuters

Globe temporarily closes select Stores as Covid cases soar

Globe EasyHub is open in select locations to serve Globe customers.

Globe announces the temporary closure of select Stores in NCR and other areas, as Covid cases surge. Globe is not spared from the current challenges of rising community infections.

This move is done to also ensure the safety of customers and store personnel.

The list of Globe Stores that will be temporarily closed are as follows:

Closed until January 11

Lucky Chinatown, Binondo, Manila
PowerPlant Mall, Makati City
Robinsons Magnolia, Quezon City
Shangri-La, Mandaluyong City
SM City Novaliches, Quezon City
SM City Sta. Mesa, Quezon City
SM Megamall, Mandaluyong City

Closed until January 12

Ayala Malls Fairview Terraces
ICONIC Globe Store, BGC, Taguig City –
Market Market, Taguig City
SM Center Lemery, Lemery
SM City Bacoor
SM City Batangas, Batangas City
SM City Marikina, Marikina City
SM City Masinag, Antipolo City
SM City Taytay, Rizal

Closed until January 13

Nepo Mall, Dagupan
SM City Lipa, Batangas
SM City Naga, Naga City
SM City Rosario, Cavite

Closed until January 14

D’Mall, Boracay, Aklan
Festival Supermall, Muntinlupa City
Robinsons Galleria, Quezon City
The District Imus, Imus

Closed until January 15

SM City Lucena, Lucena City –
SM Molino, Bacoor
SM City Santa Rosa, Sta. Rosa City
SM City Urdaneta Central, Urdaneta City

Closed until January 16

AliMall, Quezon City
Gaisano Grand Fiesta Mall, Cebu
SM City East Ortigas
SM City Valenzuela, Valenzuela City

Closed until January 17

SM City Clark, Angeles, Pampanga

Closed until further notice

SM City Bacolod, Bacolod City
SM City Baguio, Baguio City

Select Globe Stores will be open to handle important transactions. This includes plan application, upgrade, renewal, and reactivation; device pick-up, change ownership, change SIM, device return and replacement, bills payments, GCash cash-ins, and prepaid products. For an updated list of our Stores, visit https://www.globe.com.ph/stay-safe-at-home/stores.html.

Customers will be able to do their transactions such as paying bills through the Globe EasyHub

In addition, Globe EasyHub all-in-one digital kiosks are open to allow customers to shop, pay, explore, and even access information on how to request customer service support in Globe’s mobile platforms. EasyHub can be found in Ayala Malls Manila Bay, SM Manila, and Robinson’s Place Bacolod City. Customers may also download the updated GlobeOne app for free on Google Playstore and App store to be able to pay manage their Globe accounts.

Globe’s online shop is also available at https://shop.globe.com.ph for our customers’ needs. They can pay conveniently using GCash, the largest e-wallet service provider in the country. GCash can also be used to shop for essentials, pay utility bills, buy prepaid load, and more.

For more information, visit www.globe.com.ph.

 


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N.Korea’s Kim calls for more ‘military muscle’ after watching hypersonic missile test

KCNA VIA REUTERS

SEOUL, Jan 12 (Reuters) – North Korean leader Kim Jong Un called for boosting the country’s strategic military forces as he observed the test of a hypersonic missile, state media said on Wednesday, officially attending a missile launch for the first time in nearly two years.

On Tuesday authorities in South Korea and Japan detected the suspected launch, which drew condemnation by authorities around the world and prompted an expression of concern from the U.N. secretary-general.

The second test of a “hypersonic missile” in less than a week underscored Kim‘s New Year’s vow to bolster the military with cutting-edge technology at a time when talks with South Korea and the United States have stalled.

After watching the test, Kim urged military scientists to “further accelerate the efforts to steadily build up the country’s strategic military muscle both in quality and quantity and further modernize the army,” KCNA news agency reported.

It was the first time since March 2020 that Kim had officially attended a missile test.

“His presence here would suggest particular attention on this programme,” Ankit Panda, a senior fellow at the U.S.-based Carnegie Endowment for International Peace, posted on Twitter.

Unlike some other recent tests, ruling party newspaper Rodong Sinmun published photos of Kim attending the launch on its front page.

“While Kim probably unofficially attended other tests in the interim, this appearance and its Page One feature on Rodong Sinmun is important,” said Chad O’Carroll, chief executive of Korea Risk Group, which monitors North Korea. “It means Kim is not concerned about being personally associated (with) tests of major new tech. And doesn’t care how the U.S. sees this.”

U.N. Security Council resolutions ban all North Korean ballistic missile and nuclear tests and have imposed sanctions over the programs.

Talks aimed at persuading North Korea to surrender or limit its arsenal of nuclear weapons and missiles have stalled, with Pyongyang saying it is open to diplomacy but only if the United States and its allies stop “hostile policies” such as sanctions or military drills.

U.S. Under Secretary of State for Political Affairs Victoria Nuland called the launches dangerous and destabilising.

“It obviously takes us in the wrong direction,” she said at a regular briefing in Washington on Tuesday. “As you know, the United States has been saying since this administration came in that we are open to dialogue with North Korea, that we are open to talking about COVID and humanitarian support, and instead they’re firing off missiles.”

The European Union on Tuesday condemned the latest North Korean missile launch as a “threat to international peace and security” and called on Pyongyang to resume diplomacy.

 

‘SUPERIOR MANOEUVERABILITY’

Despite their name, analysts say the main feature of hypersonic weapons is not speed – which can sometimes be matched or exceeded by traditional ballistic missile warheads – but their manoeuvrability, which makes them an acute threat to missile defence systems.

Photos released by state media appeared to show the same type of missile and warhead that was first tested last week, analysts said.

“The test-fire was aimed at the final verification of overall technical specifications of the developed hypersonic weapon system,” KCNA reported.

After its release from the rocket booster, a hypersonic glide vehicle made a 600 km (375 mile) “glide jump flight” and then 240 km of “corkscrew manoeuvering” before hitting a target in the sea 1,000 km away, the report said.

South Korean officials had questioned the capabilities of the missile after the first test last week, saying it did not appear to demonstrate the range and manoeuverability claimed in a state media report and featured a manoeuverable warhead rather than an actual glide vehicle.

On Tuesday, however, South Korea said the second test appeared to show improved performance, with the missile reaching top speeds up to 10 times the speed of sound (12,348 km per hour / 7,673 miles per hour), although they did not comment on its manoeuverability.

“The superior manoeuverability of the hypersonic glide vehicle was more strikingly verified through the final test-fire,” KCNA said. – Reuters

Biden, top officials defend COVID response amid Omicron surge

REUTERS

WASHINGTON – President Joe Biden and top health officials on Tuesday defended the government’s response to the unrelenting pandemic as daily U.S. COVID-19 cases reached a new high, largely fueled by the highly contagious Omicron variant.

Biden, who has been accused of focusing on vaccinations at the expense of testing and support for struggling healthcare systems, told reporters on Tuesday he was “confident we’re on the right track” to fight the pandemic.

A surge in cases and hospitalizations has forced Americans to cancel travel plans, shuttered entertainment venues, and scrambled plans for students and teachers to return to school and workers to go back to the office.

The heads of the Food and Drug Administration, the National Institutes of Health, and the Centers for Disease Control and Prevention said the protracted battle against the virus has made clear the need for easier access to testing, better therapies and a vaccine more widely effective against a range of variants.

Janet Woodcock, the FDA’s acting commissioner, acknowledged the agencies’ challenges in dealing with the pandemic after two years, especially amid Omicron, but said the focus now needed to be on the current surge.

“I don’t think prior approaches reflect what’s going on right now. I think it’s hard to process what’s actually happening right now, which is most people are going to get COVID,” she told a Senate committee hearing. “And what we need to do is make sure the hospitals can still function, transportation, other essential services are not disrupted while this happens. I think after that will be a good time to reassess how we’re approaching this pandemic.”

Dawn O’Connell, assistant Health and Human Services secretary for preparedness and response, said at the same hearing that the administration was working on shipping out the 500 million at-home COVID-19 tests ordered by Biden. The first batch goes out later this month and the rest in the next 60 days.

Democratic and Republican senators at the hearing lamented testing woes and other problems even as they vowed support for the agencies and the fight ahead, including the possibility of more funds.

The United States reported 1.35 million new coronavirus infections on Monday, according to a Reuters tally, the highest daily total for any country in the world. Omicron was estimated to account for 98.3% of total new coronavirus cases circulating in the country as of Jan. 8, the CDC said Tuesday.

A closely watched projection from the Institute for Health Metrics and Evaluation (IHME) at the University of Washington estimates that number is far higher due to the likelihood that many more infections go undetected, either because people are without symptoms or do not have access to testing.

As a result, the IHME model suggests that the U.S. surge fueled largely by Omicron may have already hit a daily peak of more than 6 million cases, and could drop significantly from that point by the end of this month. But disruptions to health systems, schools and businesses might not resolve quickly even as infections decrease.

 

‘GLIMMER OF HOPE’

After a surge of COVID-19 cases that overwhelmed some hospitals in New York state, Governor Kathy Hochul said Tuesday that the tide might be turning.

While daily new infections remain high with 48,686 new cases reported on Monday, Hochul said the downward trajectory offered a “glimmer of hope.”

“Looks like we might be cresting over that peak,” the governor said at a news conference.

In Chicago, the seven-day average of cases showed indications of a decrease last week, dropping 8% since the week prior that saw 5,200 cases, city data showed.

The Omicron surge led to a tense standoff between city officials and the union representing most of the city’s public school teachers that canceled classes for a week.

Teachers reached an agreement on COVID-19 safeguards with the district on Monday, and the system’s 340,000 students are due back to school on Wednesday.

The walkout began with a union vote to reinstate virtual instruction and a push for more rigorous safety protocols, including wider testing, as the Omicron variant spread. Mayor Lori Lightfoot has pushed to keep schools open, citing, among other factors, how remote learning disproportionately affects minority students.

While most U.S. public school districts have reopened their campuses for the new year, education systems in some major cities have opted for online learning or delayed back-to-classroom plans due to staff shortages, in some cases caused by COVID illnesses.

In New York City, some students, wrapped in winter coats to protect them against freezing weather, staged a walkout on Tuesday over COVID-19 concerns in schools. – Reuters

Pfizer to cut U.S. sales staff as meetings with healthcare providers move to virtual

Pfizer Inc said on Tuesday it is reducing its U.S. sales staff as it expects doctors and other healthcare providers to want fewer face-to-face interactions with sales people after the COVID-19 pandemic ends.

The move comes as the company is expected to announce more than $80 billion in revenue in 2021 on strong sales of the COVID-19 vaccine it developed with Germany’s BioNTech SE . That would be record sales for a pharmaceutical company, according to Pfizer Chief Executive Albert Bourla.

“We are evolving into a more focused and innovative biopharma company, and evolving the way we engage with healthcare professionals in an increasingly digital world,” the company said in a statement.

“There will be some changes to our workforce to ensure we have the right expertise and resources in place to meet our evolving needs.”

The company did not specify how many sales jobs it was cutting.

A source familiar with the matter said Pfizer was eliminating a few hundred positions. The company also plans to create new positions in different areas for around half those jobs, the source said.

According to a document seen by Reuters, Pfizer believes that doctors and other healthcare professionals will want around half of their interactions with drug companies to be remote in the future.

Pfizer’s revenue is expected to climb even higher this year and is projected to top $100 billion, according to analyst estimates.

Around half of the company’s 2022 sales are expected to come from the COVID-19 vaccine and its new oral COVID-19 treatment, Paxlovid.

The vaccine and Paxlovid are being sold directly to governments in the near-term. – Reuters

Luxury and affordability can be yours in SMDC’s Gold City

SM Development Corporation (SMDC), the largest and fastest growing real estate company in the Philippines, remains optimistic in 2022 on the continued uptick in the real estate landscape as it continues to fulfill its vision of providing Filipinos with quality homes in communities that help shape and improve their ever-changing way of life.

One such development is Gold City. Conveniently located across Ninoy Aquino International Airport Terminal 1, SMDC redefines mixed-use township developments as it seamlessly integrates work, living, and leisure spaces designed by no less than world-renowned architects and interior designers.

Its close proximity to major thoroughfares such as the NAIAX and C5 extension which lead to central business districts, shopping areas, dining and leisure centers, and tourist spots, as well as being near transport infrastructures like the Mega Manila Subway make it a fully accessible and convenient development worth investing in or calling it home.

Because of SMDC’s pioneering vision and synergy in working with the best, Gold City and Gold Residences have already won numerous awards such as Best Township Award, Best Landscape Architectural Design, Best Mixed-Use Development, Best Lifestyle Development, and Best Mid-Rise Condo Development from prestigious award-giving bodies.

Working and living spaces of the future at Gold RESO

With many businesses adapting to a more hybrid approach to working, the 11.6-hectare master planned community provides entrepreneurs with an innovative concept in Gold RESO (Residential-Offices).

This modern development gives its users the comforts of a residential address with features and amenities designed for running a business from home. Having this allows business owners to convert office rent expenses into a real asset they own.

Units are efficiently laid out to provide requirements of a proper office such as ample natural light, sufficient working spaces, fast internet connection, and 100% back up power in all units.

The world-class lobbies of each office tower, designed by Plus Architecture, an Australian-based design firm that specializes in commercial developments, is meant to impress with its gold accents set against premium finishes.

Gold RESO also has meeting rooms, co-working spaces, as well as fitness and wellness amenities, and a commercial area to boot.

Living in luxury at Gold Residences

SMDC’s residential developments are known for its hotel-like lobbies, resort-style amenities, and efficient property management, and Gold Residences is no exception.

There will be eight mid-rise residential towers of Gold Residences, and behind its design are two world-class, award-winning design stalwarts – Singapore-based firm Michael Fiebriech Design (MFD), which specializes in luxury hotels, and Hong Kong-based architecture, urban design and master-planning firm, Adrian L. Norman Limited (ALN).

The residential phases at Gold City boast amenities designed with rich materials for its discerning users. These include a gym and yoga studio, function rooms, communal work lounges, adult and kiddie pools, playgrounds, and jogging paths, a manicured central park and enclave gardens.

The overall space MFD conceptualized for Gold Residences features dramatic installations with organic-shaped, rock-inspired elements, making every detail rich and substantial. The scheme is layered with black and gold tones creating a striking, high-contrast impression.

Meanwhile, the landscape design plans by ALN are balanced with lush landscaping and environmental features that give off a refreshing and relaxing vibe for everyone who lives and works in Gold City. Residents can also enjoy manicured gardens adorned with gold design pieces in keeping with the glittering theme of Gold City.

SMDC will continue to provide its unmatched service in property management, maintenance, and security. With Gold City being close to the airport, residents can just leave their car at home because they can enjoy the convenience of being shuttled to the NAIA Terminals should they be flying off to their next destination.

Style and structural integrity, functionality, inter-connectivity of the developments, and fluidity of the environs are sure to make Gold City an enjoyable, walkable community amidst a thriving economic district.

For more information about Gold Residential-Offices and Gold Residences, visit www.smdc.com/properties.

 


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Cocolife named Best Life Insurance Company, Best Insurance Customer Service Provider in PHL

In the radically-changed world, not many companies have managed to pivot and adapt their businesses to meet the needs of the public. Cocolife, the biggest Filipino-owned stock life insurance company as well as the first ISO-certified Filipino life insurance company, has proven itself as a standout in this regard.

Cocolife has been recognized by the International Management Institute’s Global Business Review as a leader of Philippine insurance, honoring the company with the prestigious “Best Life Insurance Company Philippines” and “Best Insurance Customer Service Provider Philippines” awards for 2021. Noting Cocolife’s outstanding leadership by Atty. Martin A. Loon, the internationally-published magazine also gave him the recognition of the Philippines’ “Young CEO of the Year”.

The awards are building on Cocolife’s growing momentum as a life insurance powerhouse in the country, as it follows recent honors by the International Business Magazine, which named the company the Most Outstanding Life Insurance Company in the Philippines for 2021 as well as the Most Outstanding Healthcare Provider in the Philippines for 2021.

With over four decades of expertise and history in the Philippines, Cocolife has built an expanding network of branch offices nationwide, manned by highly-trained agents, account executives, and field managers. Cocolife consistently ranks among the top life insurance companies in the country, generating P3.97 billion in premium income, P678.12 million in new business annual premium equivalent, P27.14 billion in assets, P3.40 billion in net worth, P550 million in paid-up capital, P90.77 million in net income, and P21.39 billion in invested assets as of second quarter of 2021.

The company’s wide range of coverage, customized plans and offerings, as well as the ease of processing, smooth transactions, and excellent overall customer experience have created the foundations for its success.

Cocolife has recently undertaken a massive effort to improve its customer experience journey through expanded investments in digitization. Armed with a technology roadmap, the company sought to develop its digital customer engagement platforms, increase operation efficiencies, promote information security, ensure business continuity, and future-proof the company against industry incumbents and disruptors. Through all this, Cocolife seeks to back its range of products with a best-in-class customer support team.

“Cocolife remains strong amid challenges with its secure financial standing and a reliable, competent, and service-oriented team. Our Belief system, Customer Service, Product Quality and Reliable delivery makes our Brand Value. Cocolife is highly transparent and a guide for an individual or any corporation when it comes to diversified array of financial products & services,” the company noted.

Such efforts are rooted in the company maxim, “Believing in the Filipino”. Cocolife aims to enable and support the Filipino dream — to be free from financial burden and inadequacies. The company achieves this by improving the lives of the Filipino people through its comprehensive suite of insurance products and services, leveraging on Filipino values and heritage.

“Cocolife is and will always be all-hands in helping its fellow countrymen. For more than four decades, Cocolife continues to uphold its commitment as an insurance company Filipinos can trust as their partner in achieving their dreams,” the company said.

A leader for a new age

Atyy. Martin Loon, Cocolife President and CEO

Atty. Martin Loon is the youngest president and CEO of Cocolife, being elected to serve the company’s Board of Directors when he was only 32. Nevertheless, his young age did not hinder his capacity to lead, as under his leadership, Cocolife earned its highest revenue in its 42-year history, two years in a row, despite the challenges brought about by the pandemic. For the first time in company history, it also received zero audit findings from its two ISO Audits for the years 2020 and 2021.

Apart from the prestigious award bestowed by the Global Business Review, he was also previously named as an Awardee of the Circle of Excellence for the Category Young Leader of the Year by the Asia CEO Awards for 2021.

“This achievement reminds us of the importance of our mission: to serve others more and find ways to be better. We hope to make COCOLIFE a world-class insurance company, a beacon of hope that Filipinos can truly be proud of,” Mr. Loon said.

 


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Meet EcoFlow: The portable power station brand contributes energy to be ready for every situation

Portable power stations today come in all shapes and sizes, and are virtually available for purchase everywhere via online and offline channels. But not every one of those power stations boast the innovative capabilities of EcoFlow, which currently holds the title for fastest charging technology by charging from 0~80% within an hour. Founded in 2017, EcoFlow strives to reinvent the way people everywhere access power by creating smart, sustainable, and powerful energy storage products. To top the list of their impressive feats, EcoFlow’s DELTA Pro and DELTA Max broke crowdfunding platform Kickstarter’s record for “Most Funded Tech Project” in September by raising over $12 million during its 2-month campaign.

Enjoy your travel day with EcoFlow power station.

EcoFlow’s main product lines of DELTA and RIVER are power stations that equip the consumer with an industrial amount of clean, quiet, and renewable power for life adventures, work, and home backup power. Depending on the workload and its purpose, EcoFlow’s products are utilizable in various situations like emergencies (home backup power, disaster relief, medical services), outdoors (road trips, camping, festivals), and even professional uses (DIY/Construction, Filmmaking/Photography, Event Production).

Fully equipped, suitable for all applications.

EcoFlow’s products use incomparable innovative technology patents such as the ‘X-Boost’, which makes the power stations capable of running large output appliances with ease, and the ‘X-Stream’, which allows the recharge rate to be at speeds that are 10 times faster than the speed of most portable power stations in the market. The BMS (Battery Management System) of the products measure real-time voltage, current, and temperature precisely and conditions the battery for best performance with intelligent algorithms. Most importantly, EcoFlow aims to truly become a sustainable and eco-friendly product by including 110W & 160W solar panels made up of efficient monocrystalline silicon cells, which recharge the portable power stations itself. Solar energy by using the solar panels would be a perfect replacement especially when gas and oil prices have increased dramatically in recent months. In any case, an EcoFlow charger provides fast, reliable, and sustainable power that can be accessed any time, anywhere.

Anytime anywhere, no need to worry about the working space.

In the Philippines, EcoFlow has been able to support and donate some of their products to Lokal.Lab, an NGO that works to create equal access to sustainable lifestyles & opportunities for local communities. Moreover, their portable power stations were donated by EcoFlow to be used to help Ugnayan ng Pahniungod Manila, a doctor’s group that were on their way to Samar to provide medical support to those affected by the typhoon. In both cases, EcoFlow’s portable power stations were used to power up essential electrical devices in areas where access to electricity was not available.

Most useful power station with a cool and minimal design.

To know more, please visit https://ecoflow.com/pages/portable-power-generator-dealer or email sales.rest@ecoflow.com.

This year, stay tuned for more new products that EcoFlow is going to offer.

EcoFlow products are currently available in the Philippines. You may visit online at https://mototesto.com/collections/ecoflow-portable-power-station.

 


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Nov. trade deficit balloons to record

ICTSI

By Lourdes O. Pilar, Researcher

THE COUNTRY’S trade-in-goods deficit further widened to a record high in November as growth in merchandise imports continued to outpace the rise in exports, the Philippine Statistics Authority (PSA) reported on Tuesday. 

Export receipts grew by 6.6% year on year to $6.27 billion in November, preliminary data from the PSA showed.

This was higher than the 4.6% increase in the same month in 2020 and the 2% growth in October 2021. November’s export growth was the highest in three months or since August’s 18.9% expansion.

Philippine trade year-on-year performance (Nov. 2021)

The value of November exports slipped to a six-month low or since May’s $5.94 billion.

Meanwhile, the country’s merchandise import bill rose by 36.8% to a record $10.98 billion in November.

This marked a turnaround from the 13.5% fall in November 2020 but faster than the 25.1% increase in imports in October 2021.

This was the highest import growth in five months or since the 43.4% surge recorded in June.

This brought the trade-in-goods deficit to $4.71 billion in November, wider than the $2.14-billion shortfall recorded in the same month last year, as well as the $4.11-billion gap in October.

This was the widest monthly trade gap on PSA’s record dating back to 1991.

Year to date, the trade balance ballooned to a $37.92-billion deficit, from a $22.15-billion trade gap in 2020’s comparable 11 months.

For the 11-month period, exports jumped by 15.2% year on year to $68.37 billion. This was below the revised 16% growth projected by the Development Budget Coordination Committee for 2021.

Imports, on the other hand, climbed by 30.4% to $106.30 billion, slightly above the government’s revised 30% assumption.

Outbound shipment of manufactured goods grew by 5.9% to $5.30 billion in November. These goods accounted for 84.4% of total export sales that month.

Electronic products, which made up 70.2% of manufactured goods and more than half of the total exported goods, rose by 5.6% to $3.71 billion in November. Of these, semiconductors contributed $2.62 billion — up by 3.7% from November 2020.

Agro-based products increased by 36.1% to $491.22 million, while forest products went up by 6% to $34.25 million.

However, sales of mineral and petroleum products contracted by 8.9% to $359.27 million and 95.2% to $42,000, respectively.

All major import items posted significant annual growth in November.

Raw materials and intermediate goods, which accounted for 38.7% of import goods in November, grew by 39.2% to $4.25 billion.

Imports of capital and consumer goods were valued at $3.35 billion (up 18.8%) and $1.76 billion (up 22.7%) in November.

Purchases of mineral fuels, lubricant and related materials more than doubled to $1.55 billion in November from $642.87 million in the same month in 2020. These goods accounted for 14.1% of the country’s total imports that month versus just 8% in the same month in 2020.

Asian Institute of Management (AIM) economist John Paolo R. Rivera said that improved trade performance was “expected” as the pandemic situation in the country improved from September until December.

“Because of increased demand locally due to a more active economy, imports were expected to gain steam. Exports, on the other hand, were also expected to perform given the varying pace of economic recovery by our trading partners,” he said in an e-mail interview.

“The last quarter of 2021 was a good window for the economy to get moving until the Omicron variant threatens this recovery process momentum,” Mr. Rivera said.

In a note to reporters, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said higher fuel imports was one of the factors for the widening trade gap.

“Costlier imported crude oil translated to overall fuel imports rising sharply, which in turn helped bloat the trade deficit to its current record high,” he said. “With global crude oil prices staying elevated to open the year, the Philippines could continue to experience wider trade deficits in the near term.”

OUTLOOK
The government’s trade targets for 2021 were on track to be met, but the fresh surge in new coronavirus cases may hurt this year’s trade growth assumptions.

The interagency DBCC expects exports and imports to grow by 6% and 10%, respectively, this year.

“The problem would be felt in the first quarter of 2022 due to Omicron. But for 2021, I think the government will meet its targets for exports and imports,” Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said in a phone interview.

AIM’s Mr. Rivera expects the 2021 targets to be met with “slim margin or slim shortfall.”

“Given the economic conditions during the last quarter of 2021 and the performance in the previous quarters, the Delta variant surge was the most significant threat to meeting economic target performances,” he said. “The threats were significant in altering the growth trajectories of trade figures even in the first quarter of 2022.”

For ING’s Mr. Mapa, the ballooning trade gap pushed the country’s current account balance to a deficit in 2021. He expects this trend to continue this year.

The current account shows a country’s transactions with the rest of the world. It includes trade in goods and services, remittances from migrant Filipino workers, profit from Philippine investments overseas, interest payments to foreign creditors, and gifts, grants, and donations to and from abroad.

“With the current account expected to remain in deficit territory, pressure on PHP (Philippine peso) to weaken should persist in 2022 although other factors such as the looming Fed rate hike will likely play a major role in the currency’s trajectory this year,” Mr. Mapa said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a note sent to reporters that the recent surge in new coronavirus cases will be a drag on economic recovery prospects and on trade.

“Lingering concerns over the Omicron variant could also add to the disruptions in the global supply chains amid isolation and quarantine for increased number of infected workers for many businesses and industries worldwide,” he added.

Mr. Ricafort said the trade deficit could be sustained at the $4-billion levels per month this year for as long as the global oil prices remained elevated as the pandemic-induced supply chain disruptions continue.

“For the coming months, further pickup in imports and exports could also be supported by still near-record-low short-term interest rates that could help spur greater demand for loans for new investments that entail the more importation and also more export production as well as more jobs and other business opportunities in the supply chain and for related businesses and industries,” Mr. Ricafort said.

GDP growth seen below gov’t target this year

AISLES of tiangge (flea market) in Taytay, Rizal are filled with customers looking for cheap clothes. — PHILIPPINE STAR/ MICHAEL VARCAS
Shoppers crowded the aisles of a market in Taytay, Rizal, Dec. 13, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

ECONOMISTS EXPECT the Philippines’ gross domestic product (GDP) to grow between 6-7% this year, lower than the government’s 7-9% target range.

First Metro Investment Corp. (FMIC) on Tuesday said the economy will likely expand by 6-7% in 2022 as remittances increase and the outsourcing industry generates more revenue.

On the other hand, the Hongkong and Shanghai Banking Corp. (HSBC) lowered its 2022 growth forecast for the Philippines to 6.2%, from 6.5% previously.

“This is a strong growth this year, but we are still not at the pre-pandemic output levels. It will still take a few more years before we get there, similar to other countries as well,” James Cheo, chief investment officer, Southeast Asia Global Private Banking and Wealth at HSBC, said at an online briefing.

Mr. Cheo said the government’s infrastructure push will help accelerate growth.

“It’s [Philippine economic growth] really one of a recovery, powered by consumption, economic reopening and also the big investment infrastructure projects that are backed by the government,” he said.

The economy will also be supported by rising demand for technology-driven products, said Fan Cheuk Wan, Asia managing director and chief investment officer for HSBC Global Private Banking and Wealth.

“We think the key driver for the growth recovery remains the economic reopening and we also anticipate that the global tech cycle will also benefit the Philippines because quite an important driver for the Philippine economy is actually the electronics growth,” Ms. Fan said.

The government gradually eased restrictions in the fourth quarter, allowing more economic activity as the daily new cases of coronavirus disease 2019 (COVID-19) declined.

“Last year the Philippine economy rebounded from a deep recession, registering 4.9% growth in the first three quarters of the year. This growth momentum likely spilled over in the fourth quarter given further economic reopening and easing mobility restrictions,” FMIC President Jose Patricio A. Dumlao said in a statement.

Third-quarter GDP grew by 7.1%, bringing full-year growth to 4.9%. The Development Budget Coordination Committee raised the 2021 outlook to 5-5.5%, from the previous estimate of 4-5%.

“Notwithstanding the ongoing pandemic, and Omicron sparking the third wave of infections, we are still optimistic that Philippine growth will further accelerate and get back on its trajectory of 6-7% in 2022,” Mr. Dumlao added.

This forecast would be backed by its 9.5% growth projection for the industry sector. The services sector would lag behind with a 5% growth forecast.

Business process outsourcing will likely see more earnings from emerging segments like insurance, healthcare, and data and analytics, he added.

Economist Victor A. Abola of the University of Asia and the Pacific (UA&P) at a briefing listed some caveats, including the continued effect of COVID-19 on poverty levels and supply chain disruptions. UA&P is FMIC’s partner in issuing its economic outlook.

Credible elections will be necessary to support FMIC’s economic growth forecast, he added.

INFLATION ISSUE
Meanwhile, HSBC’s Mr. Cheo said inflation in 2022 will still be “a little bit of an issue” as it could be at about 3.7%. Last year, inflation averaged 4.5%, above the 2-4% target of the Bangko Sentral ng Pilipinas (BSP).

For this year, Mr. Cheo said the central bank would likely keep its focus on supporting economic recovery.

“It’s very likely that the central bank would still be on a wait-and-see mode because they would still want to maintain growth. So perhaps, if there is a hike in policy rates, the next move will probably be in the second half of this year with a 50-basis-point hike,” Mr. Cheo said.

The BSP has kept the key policy rate at a record low of 2% all throughout 2021, after cutting rates by 200 basis points in 2020. Last week, BSP Governor Benjamin E. Diokno said they will ensure a careful exit strategy and will only raise interest rates “when prospects for the economy have materially improved.”

CREDIT DOWNGRADE UNLIKELY
A credit downgrade this year will be unlikely, while the debt ratio would probably decline with faster economic growth, according UA&P’s Mr. Abola.

“We have high gross international reserves and we have one of the lowest external debt-to-GDP,” he said, comparing the Philippines to other countries in Asia.

“Our reserves remain high,” he said. “What’s driving that is we have a very robust OFW (overseas Filipino worker remittances).”

Fitch Ratings in November said rising public debt could lead to a credit rating downgrade for the Philippines in the next few years. The country’s debt-to-GDP ratio was 63.1% as of September, the highest in 16 years. — Luz Wendy T. Noble and Jenina P. Ibañez

Banks’ November NPL ratio lowest in 8 months — BSP data

BW FILE PHOTO

By Luz Wendy T. Noble, Reporter

PHILIPPINE BANKS’ asset quality improved for a third month in a row in November as the industry’s gross nonperforming loan (NPL) ratio fell to its lowest since March 2021.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed banks’ NPL ratio stood at 4.35% as of November, easing from the 4.42% as of Oct. but still above the 3.81% a year earlier.

The November bad loan ratio matched the 4.35% in April and is the lowest in eight months or since the 4.21% logged in March.

The industry’s NPL ratio has dropped after reaching a 13-year high of 4.51% in July and August, after the easing of pandemic-related restrictions allowed businesses to expand operational capacity.

BSP data showed bad loans as of November slipped by 0.43% to P481.879 billion from P483.98 billion in the prior month. However, it was still higher by 19% from the P404.687 billion seen in the same month a year earlier. 

Lenders’ total loan portfolio grew by 4.3% year on year to P11.08 trillion as of November.

“The absolute amount of bad loans continued to climb as firms and households are still faced with challenging economic conditions. The NPL ratio, however, dipped as new loan growth picked up amidst the economic reopening,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

Earlier released central bank data showed lending by big banks rose by 4% in November, marking the fourth straight month of annual growth and the fastest since the 4.7% in 2020. Lending for production activities increased by 5.3%, although retail borrowings was still down by 7.1%.

The government placed Metro Manila under the more relaxed Alert Level 2 in November.

Meanwhile, past due loans as of November rose by 11.5% to P567.511 billion from P507.687 billion a year earlier. These accounted for 5.12% of the total loans, up from 4.78% a year ago.

In the same month, restructured loans more than doubled year on year to P344.896 billion from P139.614 billion. This brought its ratio to 3.11% of banks’ gross loan portfolio, from 1.31%.

Lenders’ loan loss reserves jumped by 19% year on year to P419.862 billion from P352.733 billion. These buffers are equivalent to 3.79% of the total loans.

NPL coverage ratio — which indicates banks’ allowance for potential losses due to bad loans — was a tad lower at 87.13% from 87.16% a year ago.    

The BSP earlier said the NPL ratio could reach 5-6% by end-2021 before peaking at 8.2% by 2022.

While banks’ asset quality gradually improved due to the economy’s reopening, Mr. Mapa said the ongoing Omicron wave may force another lockdown.

“Although the declining trend in NPL is a welcome sign, [it] may be too early to say this ratio has peaked as we enter another bout of alert levels with the current surge threatening to force authorities to tighten up further,” Mr. Mapa said.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the Omicron surge is clouding the outlook for asset quality of banks, although he is optimistic this will have a “shorter impact” than previous waves.

“The improving outlook is being clouded by the Omicron effect. However, this may have a shorter impact compared to previous surges. We think that the Omicron surge may be higher but quicker to dissipate,” Mr. Asuncion said in a Viber message.

The Philippines is experiencing a surge in coronavirus disease 2019 (COVID-19) infections, which experts said is likely due to more transmissible Omicron variant. New infections rose by 28,007 on Tuesday, with active cases now at 181,016.

Rate hike unlikely in first half of 2022, says Diokno

THE PHILIPPINES’ central bank is unlikely to increase policy rates in the first half of this year as it waits for the economic recovery to become entrenched and unemployment to fall, according to central bank Governor Benjamin E. Diokno.

“After the performance in the first two quarters of the year, that’s when we seriously look at whether we will make some adjustments,” Mr. Diokno said in an interview on Tuesday. “We want to make sure that the economy is recovering well.”

Like central bankers globally, Southeast Asian policy makers are juggling the prospects of a faster US rates liftoff and the threat from a quick-spreading coronavirus variant, as well as regional developments such as the People’s Bank of China pledging greater support for its economy and sustaining accommodative policies.

“There is no ‘one size fits all’ on what’s happening,” Mr. Diokno said, when asked how faster rate increases by the US Federal Reserve will impact emerging-market central banks.

The governor said the Bangko Sentral ng Pilipinas typically likes to see four to six quarters of steady economic growth and unemployment around 5% before considering raising rates. Gross domestic product has posted two consecutive quarters of year-on-year growth — including, most recently, 7.1% expansion in the July-September period — while the unemployment rate hit 6.5% in November, the lowest since the pandemic began.

The Philippines’ key interest rate has been at a record-low 2% for more than a year, withstanding mounting inflation in 2021. Ample foreign-exchange reserves and manageable government debt provide some cushion against tighter financial conditions worldwide, said Mr. Diokno, who recently was named central banker of the year by The Banker magazine.

The governor said the economy can grow within the government’s 7%-9% forecast this year, with inflation set to slow to near the midpoint of the central bank’s 2%-4% target.

If the economy needs more support, a cut to the benchmark rate is unlikely, Mr. Diokno said. Instead, policy makers can consider tweaks to banks’ reserve requirement ratio (RRR), either in the form of direct cuts to the ratio or an easing of compliance rules, he said.

Policy makers are next scheduled to set the key rate on Feb. 17.

Mr. Diokno has said a potential RRR cut remains on the table, as the central bank reduced its direct budget support to the government and its bond buying in the secondary market. The monetary authority’s loans to the government are likely to end this year, he said on Tuesday.

PESO RANGE
Foreign-exchange strategists see the peso under pressure as the central bank aims to keep monetary policy accommodative while the Fed turns hawkish. The local currency has lost about 0.5% against the greenback so far this year.

Mr. Diokno said he’s “very comfortable” with the peso trading in a range of P48-53 per dollar, adding that the currency is unlikely to weaken beyond P53.

Going forward, Mr. Diokno said fiscal policy should be able to do the “heavy lifting” to support the economy through the pandemic, advice he said could apply to most countries.

“A governor should know the limits of monetary policy,” Mr. Diokno said. “You may be good, but you’re not superman. You can’t solve all the problems.” — Bloomberg