Banks are to manage sustainability risks, and what if they don’t?

November 3, 2021 | 6:49 pm

So many exciting things going on this week, despite the long weekend holiday: an Econ data dump including trade, IHS Markit, PMI, employment, a Fed Meeting over in the US, at least 10 blue chip stocks to report third quarter earnings and many pivotal decisions on reopening the economy, including public transport now moving up to 70% capacity, and the possibility that with a lowering of the capital’s COVID-19 restrictions to Alert Level 2 we may truly be on our way back to a normal life. But there is also the COP26 happening right now, which reminds us that not only is our time here on earth finite, but soon enough we may not have any earth to live in, largely swallowing all the little wins. And this event has also brought to light the different initiatives of countries and governments to pitch in to mitigate the damage. Interestingly, it is also during these weeks, surrounding this event that the Sustainable Finance Roadmap by the Department of Finance is in the spotlight, whereas the Bangko Sentral is now telling banks to manage environmental and social risks in their credit exposure.

On Oct. 20, the government launched a 99-page inter-agency sustainable finance roadmap, together with the UK, which it is now showcasing in the COP26 in Glasgow. The idea of the roadmap, according to Finance Secretary Carlos Dominguez, is to raise the capital and investments needed in reducing the country’s greenhouse gas emissions while still increasing its economic output. A week later, Bangko Sentral ng Pilipinas (BSP) Circular No. 1128 was released, which directs banks to adopt procedures that will take into account environmental and social issues related to both borrowers and their portfolio. This can be seen as the implementation of the BSP’s sustainable finance framework which it launched in April 2020. Essentially, banks are not only to identify whether those they lend to are credit worthy from a financial perspective and set aside provisions in the event they are less than so, but also whether they are doing good things with the money being lent and spent, or, at minimum, not harming society and/or the planet with their businesses. They are to engage in a constructive dialogue with clients with red flags to evaluate on an ongoing basis. Theoretically, these companies should already have within their internal Sustainability teams, their own explicit goals for how to become better. But then again, it’s the Pandemic, it’s an economy on its knees, already MSMEs are struggling to get reprieve from delayed debt repayments, can they afford to be “good” in the tough times too?

To make people act, it must matter to them; for what gets measured gets done. Thus, setting goals does have a way of turning into action assuming such goals are feasible. The Philippines has committed to a projected greenhouse gas emission reduction and avoidance of 75% from 2020 to 2030 for the agriculture, wastes, industry, transport, and energy sectors. According to the roadmap, Finance policies will enable a shift from carbon-intensive to renewable power sources. They will enable greener habitat and transport systems as well as more resilient agricultural practices. It all sounds sensible and it all sounds like a dream. What kinds of companies will be looked at? The low-hanging fruit are those that extract, like mining, those that are in non-renewable energy sources, and those whose activities are largely linked to carbon emissions.

However, in the latest earnings reports of our energy-related companies, it is obvious that baseload power is what is causing surging profits, with prices of coal at record highs, providing a windfall of dividends to those invested, confusing market participants as to whether cutting non-renewable sources would make economic sense from both a bottom-line and portfolio perspective. These earnings, at the onset of an economy reopening and energy being scarce, only illustrates that if we do not produce more power, wherever these sources come from, the consequences of energy security are dire, and moreover, the prices of electricity will soar, something consumers as well as firms on shaky financial ground simply cannot afford at the moment.

There is also talk on impact investing, given that farmers, fisherfolk, and those living in coastal communities bear the brunt of the consequences of climate change in the Philippines. And agricultural resilience has been touted; but these have been counter to the polices of lowering tariffs on imported products, specifically pork and other meats that then discourage farming altogether. Further, there are the supply chain difficulties that widen the gap between farmgate and retail and hinder the possibility of the sector thriving. We have a pending ban on single-use plastics, but we need much more than this. We need education on waste management, and technologies to turn waste products into energy or other circular goods.

In October last year, Department of Energy Secretary Alfonso Cusi declared a moratorium on endorsements for greenfield coal power plants to be able to build a more flexible and sustainable power supply mix, but it now appears that a ban on open pit mining may be lifted in order to collect more government revenues to finance our ballooning double-deficit to fund the country’s pandemic response.

This leaves financiers with a conundrum: they need more sustainable projects to actually fund rather than a refocus of the funding. These sustainable projects are few and far between. According to the BSP, at least seven local Philippine banks have already issued a total of $1.15 billion and P85.4 billion in green, social, and sustainability bonds since 2017. This is great in a sense that there is money going around (although this is a drop in the bucket of the trillions in total loans and assets of our commercial banks) but is there a consistent stance on policies across all government units? Are unsustainable companies and practices really suffering? Until that is clear, banks will not budge, even if they wanted to.

Daniela “Danie” Luz Laurel is a business journalist and anchor-producer of BusinessWorld Live on One News, formerly Bloomberg TV Philippines. Prior to this, she was a permanent professor of Finance at IÉSEG School of Management in Paris and maintains teaching affiliations at IÉSEG and the Ateneo School of Government. She has also worked as an investment banker in The Netherlands. Ms. Laurel holds a Ph.D. in Management Engineering with concentrations in Finance and Accounting from the Politecnico di Milano in Italy and an MBA from the Universidad Carlos III de Madrid.

The Glasgow Climate Test

November 3, 2021 | 6:49 pm

THE CLIMATE crisis is a code red for humanity.

World leaders will soon be put to the test at the UN Climate Conference — known as COP26 — in Glasgow.

Their actions — or inactions — will show their seriousness about addressing this planetary emergency.

The warning signs are hard to miss: temperatures everywhere are reaching new highs; biodiversity is reaching new lows; oceans are warming, acidifying and choking with plastic waste. Increasing temperatures will make vast stretches of our planet dead zones for humanity by century’s end.

And the respected medical journal The Lancet just described climate change as the “defining narrative of human health” in the years to come — a crisis defined by widespread hunger, respiratory illness, deadly disasters, and infectious disease outbreaks that could be even worse than COVID-19.

Despite these alarm bells ringing at fever pitch, we see new evidence in the latest UN reports that governments’ actions so far simply do not add up to what is so desperately needed.

Recent new announcements for climate action are welcome and critical — but even so, our world is on track for calamitous global temperature rises well above 2 degrees Celsius.

This is a far cry from the 1.5-degree Celsius target to which the world agreed to under the Paris Agreement — a target that science tells us is the only sustainable pathway for our world.

This target is entirely achievable.

If we can reduce global emissions by 45% compared to 2010 levels this decade.

If we can achieve global net-zero by 2050.

And if world leaders arrive in Glasgow with bold, ambitious and verifiable 2030 targets, and new, concrete policies to reverse this disaster.

G20 leaders — in particular — need to deliver.

The time has passed for diplomatic niceties.

If governments — especially G20 governments — do not stand up and lead this effort, we are headed for terrible human suffering.

But all countries need to realize that the old, carbon-burning model of development is a death sentence for their economies and our planet.

We need decarbonization now, across every sector in every country. We need to shift subsidies from fossil fuels to renewable energy, and tax pollution, not people. We need to put a price on carbon, and channel that back towards resilient infrastructures and jobs.

And we need to phase-out coal — by 2030 in OECD countries and 2040 in all others. Increasing numbers of governments have pledged to stop financing coal — and private finance needs to do the same, urgently.

People rightly expect their governments to lead. But we all have a responsibility to safeguard our collective future.

Businesses need to reduce their climate impact, and fully and credibly align their operations and financial flows to a net-zero future. No more excuses; no more greenwashing.

Investors — public and private alike — must do the same. They should join front runners like the net-zero asset owners alliance, and the UN’s own pension fund, which met its 2021 carbon reduction investment objectives ahead of time and above its target, with a 32% reduction this year.

Individuals in every society need to make better, more responsible choices in what they eat, how they travel, and what they buy.

And young people — and climate activists — need to keep doing what they’re doing: demanding action from their leaders and keeping them accountable.

Throughout, we need global solidarity to help all countries make this shift. Developing countries are grappling with debt and liquidity crises. They need support.

Public and multilateral development banks must significantly increase their climate portfolios and intensify their efforts to help countries transition to net-zero, resilient economies. The developed world must urgently meet its commitment of at least $100 billion in annual climate finance for developing countries.

Donors and multilateral development banks to allocate at least half their climate finance towards adaptation and resilience.

The United Nations was founded 76 years ago to build consensus for action against the greatest threats facing humanity. But rarely have we faced a crisis like this one — a truly existential crisis that — if not addressed — threatens not only us, but future generations.

There is one path forward. A 1.5-degree future is the only viable future for humanity.

Leaders must get on with the job in Glasgow, before it’s too late.

António Guterres is secretary-general of the United Nations.

Do you have anything (consequential) to say? How will you say it?

November 3, 2021 | 6:48 pm

I was able to catch most of the presentation of Presidential candidate, Senator Panfilo “Ping” Lacson, and the question-and-answer portion of the Senator’s appearance at the FINEX (Financial Executives Institute of the Philippines) webinar “Presidentiable Series: Economic Reform in the New Frontier.” The title of the webinar, designed obviously to catch one’s attention and sound compelling to rightly bring in the crowd, immediately drew the boundaries of the discussion. No politics, all economics, even if one affects the other in many ways.

Since the metes and bounds were clearly defined, Mr. Lacson focused, with discipline, on his proposed economic program, in accordance with the Lacson-Vicente Sotto campaign strategy of presenting one’s programs of action and avoiding attacks or even expressing critical judgment on sins of character and sins of administration. This decision by the team of presidential and vice-presidential aspirants and their handlers is deliberately designed to avoid bare knuckle political fist fights in which opposition groups normally engage to create a clear alternative between them and the powers that be. In addition, this attack, attack mode creates a macho image which, in the case of Lacson, has already been established and therefore need not be reinforced. The tandem’s handlers figure that people want to know what concrete and practical measures he will employ to solve our urgent problems.

The demeanor of Lacson throughout that two-hour Saturday evening FINEX webinar was consistent with his image and the message that was featured in the cover of the Oct. 25-Nov. 1 issue of Biz News Asia. It is interesting to note that the magazine’s cover story came close on the heels of the FINEX webinar, with Lacson telling host Mike Toledo that “he doesn’t mind being a guinea pig,” in reference to his being the first of the presidentiables to be featured in the FINEX series.

The magazine cover rattles off the message: “Panfilo Lacson and Tito Sotto Represent Law and Order, Vast Experience in the Executive and Legislative Branches of Government, Solid Track Records of Achievements, No Corruptions, and Matchless Celebrity Status.”

Lacson’s responses during the interview showed that Lacson has been absorbing all the possible implications, nuances, consequences, causes, issues, strategic implications of an issue and the interrelation between government agencies and the workings of the bureaucracy and the multi-dimensional nature of all the nation’s most serious problems. He went to school, so to speak, during his Senate stint and as head of the Philippine National Police. He observed how people and agencies work. He got to know the bureaucrats and the transient technocrats. He learned the so-called “logic of government” and its moving parts by participating in crucial Senate discussions and consultations with experts from academe and the professions. The only thing that needs to be clarified is his ideology: political (liberal democracy) and economic (free market, etc.) and, hand in hand with the latter, a clearly defined vision for the Philippines for the next six years. It will also be interesting to watch how much he will allow pragmatic or “tribal” politics and permit his base, constituency, and vested interests, to interfere with his presidential agenda.

Lacson’s views on the assistance that needs to be urgently extended to micro, small, and medium enterprises which have, based on the statistics he readily utters, borne the economic burden of the pandemic, together with jeepney drivers, small service businesses, and others similarly situated, show a grasp of the problem and priorities he has formulated.

The messages are clear, although I find interesting, it having somewhat come from left field, the “matchless celebrity status.” I think however that this message was surfaced to emphasize the popularity and charisma of the pair, and the Filipino penchant for “star” status of the artista or the super athlete. It’s playing to the “fan” or the star-struck in the Filipino.

Senator Manny Pacquiao will be appearing in forums identified with the AB audiences and business and industry groups which have never really been part of his milieu for most of his life, except when he became a multi-titled champion around 2008 and when he became congressman in 2010, the same year Benigno Aquino III or Noynoy/Pnoy became president. I remember arranging a meeting between Pacquiao and the then President-elect at the latter’s home in Times St. a few weeks before both men would formally assume office.

In that afternoon meeting, Congressman-elect Pacquiao, who had actively supported and campaigned for Mr. Aquino’s main opponent, exhibited the humility that eventually became one of his messages. Pacquiao pledged his support to the President-elect and showed his willingness to learn from Mr. Aquino, who had spent nine years in the Lower House. I recall Mr. Aquino advising the Pambansang Kamao on the budget process.

The main messages of Pacquiao seem to be: rise from extreme poverty to fame, a willingness to learn and thus overachieve, to having the concerns of the poor at heart since he himself was once poor, his humility, love of country, and religiosity.

For quite a number of people, these qualities have a certain appeal, especially among those weary of extra judicial killings, violence, graft and corruption, Chinese intrusions into the country’s territory, extreme partisanship, and general economic disparity and hardship.

People, especially the D and E classes, associate with Pacquiao’s folksy logic. When asked why he was giving away P1,000 bills in a recent sortie in the Southern Tagalog region, his response was, “I’ve been giving away money since 2016. It’s nothing new. It’s a practice I have. People are very hungry. They have nothing to eat. In fact, P1,000 is not enough.” If that doesn’t appeal to the impoverished who naturally think of the urgent immediate need, I don’t know what else will. Its Pacquiao’s own version of ayuda (financial aid) which predated the government’s pandemic ayuda.

His message of religiosity is further heightened by the support and guidance he gets from his Pastors and his Bible-study circle. There is, however, a tendency to carry this to the extreme when he is asked about details and plan of action to provide housing, jobs, education, health, nutrition, in general, achieving the common good, a biblical teaching. His response is “God will provide.”

We’re still a few days from Nov. 15, the final day for the finalization of candidacies for any elective post. When the final list comes out, expect realignments and, of course, modifications in messaging and communications strategy.

Philip Ella Juico’s areas of interest include the protection and promotion of democracy, free markets, sustainable development, social responsibility and sports as a tool for social development. He obtained his doctorate in business at De La Salle University. Dr. Juico served as secretary of Agrarian Reform during the Corazon C. Aquino administration.

What are you laughing at?

November 3, 2021 | 6:48 pm

EVEN in the worst of times, Filipinos seldom lose their sense of humor. Sometimes this takes the form of self-deprecation as when visiting more advanced countries — I was shouted at for standing in the bike lane and pretended I didn’t understand what they were upset about. (Okay, that’s not funny.)

Maybe with the pandemic and the deaths of people near and dear as well as the midnight rants of insomniacs, people don’t find much to laugh about. Still, humor seems to be making a comeback. The coming elections will provide grist for the humor mill.

In times past, before political correctness became a “woke” concern, we remember ridicule as a form of attack. At Plaza Miranda back then, such wind-up campaigns would feature the whole ticket, and speakers letting loose all sorts of rhetorical excesses as a form of mass entertainment. One aging and perennial senatorial candidate of another party was praised for his public service, having started as a waiter at the Last Supper. Ageism at that time was not recognized as a reprehensible slur.

Even in the years of Martial Law when humor was considered a form of insurrection, some TV host playfully rephrased the slogan — “sa ikauunlad ng bayan, bisekleta ang kailangan,” substituting discipline for the two-wheeled form of transportation. Harmless, right? But the offending TV host was required to cut grass at the main thoroughfare as punishment.* Was this too somehow a bow to humor by the repressive regime? Still, the message sent was not intended to be funny.

Trolls have used ridicule (the lowest form of humor) as a weapon. Sarcastic swipes at the targets compare previous remarks made five years ago with actions taken at the present time. Party switching, pronouncements of withdrawal from this contest, possibilities of substitutions at the last minute, and fake news on electoral violations are all unleashed with a cackle of delight.

Art Buchwald (1925-2007) was a noted American humorist. In his final days he wrote amusingly about his confinement in a hospice in his last book, Too Soon to Say Goodbye. At his prime, Buchwald wrote for the Washington Post and was syndicated in 500 newspapers around the world. He wrote, “Whether the best of times or the worst of times, it is the only time we have.” Is that not a slight bow to Charles Dickens’s opening in A Tale of Two Cities?

Our own Joe Guevara (1917-2002) in his column “Point of Order” always looked at the funny side of politics and the passing scene with his one-liners.

Maybe because of social distancing and the abolition of parties (the social kind) in the last two years, the occasions for merriment and laughter have been banned. Can laughter be elicited in virtual meetings with turn-taking and muted interruptions? Don’t you need a bit of inebriation and brazenness with the ambiguity of the anti-terrorist bill to loosen up your funny bones?

Surely, there will be occasions for humor in this political season. The debates and who will be participating in them will be fertile ground for the “grin shoots” to develop. Can you imagine on the floor our retired boxer duking it up with the former head of the PNP? Is “capital punishment” spelled with a capital letter?

The video blog on the questioning of the esteemed senator (without gloves) by a patient colleague on the appropriate organizational structure for the boxing commission was a classic metaphor for two ships passing in the night. Shouldn’t the boxing organization be under the sports commission, your honor? No, Mr. President (of the Senate), it is a big business. (Maybe it should belong to the Department of Trade and Industry?)

Humor will have its turn. The insomniac seems to have lost interest in his weekly exercise of exploring the variants of the oldest profession and its progeny as well as the weight and hairstyle of critics. Besides, the ratings have dropped.

It is time for the real clowns to take the stage. Let’s not forget the nuisance candidates who want to change the name of the country or campaign to be the 51^st state of the union.

Sometimes, politics and humor don’t mix. Political jokes, after all, can sometimes get elected. And that’s no laughing matter.

*Ariel Ureta, the TV host to whom this quote was attributed, called the story an “urban legend,” saying it did not happen. (Ariel Ureta says the “Sa ikauunlad ng Bayan, bisikleta ang kailangan” story about him is an urban legend | PEP.ph)

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

Cultivating digital talent is key to strengthening digital ecosystem in Asia Pacific

November 3, 2021 | 6:38 pm

By Patricia Mirasol

There is one vital component for post-pandemic recovery and growth in the Asia Pacific (APAC) region: digital talent investment. The Seeds for the Future program, which went online in 2020, aims to help develop the needed local information and communication technologies (ICT) talents, enhance knowledge transfer, and promote regional participation in the digital community.

“This program not only trains youth on technical skills. It also provides a platform for them to apply what was learned,” said Yang Mee Eng, executive director of the ASEAN Foundation, which promotes the development of citizens in Southeast Asia. The nonprofit signed a cooperation agreement for the education program with Huawei, a multinational technology corporation.

At a Nov. 3 digital talent summit organized by Huawei, Ms. Yang said graduates of the program have a chance to participate in a technology-for-good competition based on the United Nation’s sustainable development goals, with the winners provided the funds to realize their projects.

Seeds for the Future has an ambassador for each of the 10 countries represented by the ASEAN, who in turn shares inputs with the nonprofit on how to further improve the education program.

“[Giving out tests] is an old school way of measuring impact, and is no longer valid now,” Ms. Yang told the event participants. With the experience gleaned from its previous programs, the ASEAN foundation has vast experience in measuring impact, added Ms. Yang.

PROPER MINDSET
More than the acquisition of technical know-how, what’s needed to thrive in the digital economy is the proper mindset, according to panelists at a roundtable discussion at the digital talent summit.

“It goes beyond skills. Skills can be learned. It’s also about the mindset and culture,” said Gokhan Ogut, CEO of Maxis Berhad, a communication service provider in Malaysia. “We dub it as transformational leadership.”

Maxis, Mr. Ogut said, wants all its talents to focus on the customer, go for what’s possible, and take ownership of the company.

“Talents need to have the mindset to commit to things that are possible,” said Mr. Orgut, adding that his company is upskilling and reskilling all of its employees as needed. “If [talents] know they have that license, [then] it empowers them to deliver what is possible with tech.”

CREATING VALUE
Challenging the status quo, or rethinking, is also part of the S.M.A.R.T. framework, said Vu Ming Khuong, associate professor at National University of Singapore’s Lee Kuan Yew School of Public Policy. Strategic objectives, momentum building, acquisition of knowledge, and trust building form the framework’s other parts.

“[Individuals] should be able to rethink and not stick to the established solution,” he said. Fostering synergy is also important, he added, because a group of people coming together can do something no one individual can.

Understanding artificial intelligence, cloud computing, the Internet of Things, and 5G are all necessary, but the first step is figuring out how to derive value with technology.

“That’s why I emphasize building momentum and applying digital solutions to your job, to improve yourself and create value for the community,” Mr. Vu told the roundtable participants.

According to a study by Korn Ferry, a California-based management consulting firm, the Asia and the Pacific region will face an estimated shortage of 47 million tech talents by 2030. Huawei’s 2022 Digital Talent Insight paper calls for wide-scale digital upskilling, which it deems an urgent priority, especially as the world rebounds in the aftermath of the COVID-19 pandemic.

“Cultivating innovative ICT talent ecosystem is fundamental to the digital transformation. Leveraging shared innovations with win-win outcomes, we can harness the power of ICT skills to fly us into a digital future. Together with our partners, Huawei will invest $50 million in the next five years to develop 500,000 digital talents in the Asia Pacific region,” Jeffery Liu, president of Huawei Asia Pacific, said in his keynote speech at the digital summit.

Students can apply to Seeds for the Future through their schools or through seeds@huawei.com.

IMF chief says more vaccinations can help tame inflation

November 3, 2021 | 6:34 pm

INTERNATIONAL Monetary Fund (IMF) Managing Director Kristalina Georgieva said vaccinating the world will help ensure that higher inflation proves temporary, and expressed concern that the growth gap between advanced and emerging economies could spur social unrest.

To push inflation back down, Ms. Georgieva urged a “focus on reducing this divergence: vaccinate the world, vaccinate the world so we can see production everywhere stepping up.”

“If the divergence continues, we are going to see more unrest,” Ms. Georgieva said in an interview Tuesday with Bloomberg Television’s Francine Lacqua from the COP26 conference in Glasgow, reiterating widespread vaccinations against Covid-19 as a solution.

Supply-chain disruptions are likely to extend into mid-2022 or beyond, which is putting upward pressure on prices, and central banks are already starting to take action against inflation, Ms. Georgieva said.

Separately, Ms. Georgieva faces employee discontent at the IMF following allegations that she improperly influenced data in China’s favor while at the World Bank in 2017 — a scandal that forced her to fight to keep her job last month — and a Bloomberg News report that she and other top managers softened language on climate change in a Brazil report.

Asked if she worries about her credibility with IMF employees, Ms. Georgieva responded that “staff was and continues to be concerned.”

“That is not a minor issue, whether we have full integrity of the work we do,” she said. “Fortunately in the fund yes, we have respect for the quality of our report. I have engaged with the staff, we had two town hall meetings. I have answered many questions people have on their mind, and of course I will continue to do so.” — Bloomberg

French ambassador accuses Australia of deceit over submarine deal

November 3, 2021 | 6:33 pm

A VIEW of the Eiffel Tower in Paris, France, Nov. 28, 2015. — REUTERS

CANBERRA/SYDNEY — France’s ambassador to Australia, Jean-Pierre Thebault, said on Wednesday that Australia acted with deceit when it abruptly canceled a multi-billion dollar deal with Paris to build a fleet of submarines.

“The deceit was intentional,” Mr. Thebault told media in Canberra on Wednesday.

“And because there was far more at stake than providing submarines, because it was a common agreement on sovereignty, sealed with the transmission of highly classified data, the way it was handled was a stab in the back.”

Australia in September canceled a deal with France’s Naval Group, opting instead to build at least 12 nuclear-powered submarines in a deal with the United States and Britain.

The new alliance, dubbed AUKUS, is designed to give Australia access to nuclear-powered submarines for the first time.

The decision has caused a major bilateral rift, with France recalling its ambassadors from Australia and the United States in protest. Mr. Thebault returned to Canberra last month and the speech on Wednesday is the first time he has spoken publicly on the bilateral relationship.

“These are not things which are done between partners — even less between friends,” said Mr. Thebault, who added that the French government had no gripe with the people of Australia.

Australian Prime Minister Scott Morrison declined to refute Mr. Thebault’s comments when speaking on Wednesday in Glasgow where he is attending the U.N. COP26 climate summit. “Claims were made and claims were refuted, what is needed now is for us to move on,” Mr. Morrison told reporters.

French President Emmanuel Macron on Sunday said Mr. Morrison had lied to him about Canberra’s intentions.

Mr. Morrison has denied the claim. He said he had previously explained to Mr. Macron that conventional submarines would no longer meet Australia’s needs.

Mr. Morrison and Mr. Macron spoke last week before the Australian leader publicly sought a handshake with his French counterpart at the G20 (Group of 20) meeting.

The destabilization of the usually close diplomatic relations between the two nations now threatens to spill over into trade consequences.

The European Union has twice postponed a planned round of free trade talks with Australia. In solidarity with France, European Commission President Ursula von der Leyen questioned whether the bloc could strike a trade deal with Australia.

The relationship was tested further this week after Australian media published leaked messages between Mr. Morrison and Mr. Macron that attempted to counter France’s claim that Australia did not give it sufficient warning that the contract would be canceled.

Mr. Thebault said the leaking of the messages represented an “unprecedented new low” and he said that it sent a worrying signal to heads of state that confidential correspondence could one day be “weaponized against you.”

US President Joseph R. Biden said last week that the handling of the new pact had been clumsy, adding that he had thought France had been informed of the contract cancellation before the new pact was announced. — Reuters

China’s COVID-19 cases spike ahead of Communist Party conclave

November 3, 2021 | 6:32 pm

BEIJING — China’s new locally transmitted COVID-19 (coronavirus disease 2019) cases spiked to a near three-month high and tighter curbs to contain the spread are expected in the capital Beijing ahead of a key gathering of the highest-ranking members of the Communist Party next week.

The National Health Commission confirmed on Wednesday 93 new local symptomatic cases for Nov. 2, up from 54 a day earlier and the highest daily count since Aug. 9 at the peak of China’s last major outbreak. Beijing reported nine new local infections, the biggest one-day increase in the capital this year.

While new daily cases in Beijing since late October have remained very modest compared to outside of China, the country’s zero-tolerance policy has meant the imposition of strict measures to contain the spread of the virus at all costs.

Temperature screening has been set up at entrances of shopping malls, supermarkets, hotels, cinemas and subway stations, while a legion of personnel on the ground checks the health codes of visiting individuals on their mobile phones.

Beijing authorities have also repeatedly told residents to refrain from traveling out of the city, postpone weddings, simplify funeral arrangements, and cut back on all non-essential gatherings.

Of the flights scheduled on Wednesday at Beijing Daxing Airport, 60.4% have been cancelled as of the morning, while 49.8% of flights at Beijing Capital International Airport 0694.HK have been scrapped.

Air China is offering free cancellations for flights to and from Beijing until Dec. 1.

The rise in Beijing infections comes as the 300-plus members of the Communist Party’s Central Committee prepare to gather in a major closed-door meeting on Nov. 8-11. It will be the committee’s sixth and penultimate so-called plenum of its five-year term before the next big Party Congress in 2022.

At the plenum, President Xi Jinping is expected to push through a resolution that will cement his authority and legacy and strengthen his case for a precedent-breaking third term starting next year. (Full Story)

Outside of Beijing, new local infections were reported in the north, northeast and northwest in provinces and areas including Heilongjiang, Hebei, Gansu, Inner Mongolia, Ningxia and Qinghai.

New cases were also seen the southwest of China, in the municipality of Chongqing as well as the provinces of Sichuan and Yunnan.

The southern province of Jiangxi reported two new cases.

Carriers including China Southern Airlines, Air China and China Eastern Airlines are offering free cancellations for flights to and from some COVID-hit cities including Chongqing and Chengdu.

Inclusive of cases imported from overseas, China reported 109 new confirmed infections for Nov. 2 compared with 71 a day earlier.

As of Nov. 2, mainland China had 97,423 confirmed cases. — Reuters

Braves thump Astros to snap 26-year World Series drought

November 3, 2021 | 6:27 pm

1 of 2

JORGE Soler smacked a mammoth three-run homer, Dansby Swanson hit a two-run blast and Max Fried pitched six shutout innings as the Atlanta Braves won their first World Series title since 1995 with a resounding 7-0 victory over the Houston Astros on Tuesday night.

Freddie Freeman also went deep for the Braves, who won the best-of-seven series four games to two. Fried (1-1) gave up four hits and struck six without issuing a walk.

Tyler Matzek struck out four and allowed one hit in two innings and Will Smith yielded one hit in the ninth before retiring Yuli Gurriel on a grounder to complete a six-hit shutout as Atlanta pitching shut down the Astros once again.

All the Houston hits on Tuesday were singles. The Astros scored just four total runs in their four World Series losses, and they were blanked twice.

Soler was named World Series MVP after becoming the fourth player in Braves history to hit three homers in a World Series. The others are Hall of Famer Hank Aaron (1957), Lonnie Smith (1991), and Ryan Klesko (1995).

The Astros have played in the World Series three times in the past five seasons. Houston defeated the Los Angeles Dodgers in 2017 and lost to the Washington Nationals in 2019 prior to this year’s defeat.

The Braves defeated the Cleveland Indians in six games in 1995 for their first World Series title in Atlanta. They relocated from Milwaukee prior to the 1966 season.

Houston’s Luis Garcia (0-2) allowed three runs, two hits and one walk while striking out three in 2-2/3 innings.

Soler’s 446-foot blast came on an eight-pitch at-bat in the third inning after Ozzie Albies hit a leadoff single and Eddie Rosario drew a two-out walk off Garcia.

Soler jumped all over a full-count cutter and sent a rocket over the train tracks above the left-center-field fence to give Atlanta a 3-0 lead.

Swanson’s two-run homer off Cristian Javier was the key blow of a three-run fifth inning. Albies drew a leadoff walk and moved to second on a wild pitch. Swanson came up one out later and sent a 2-2 fastball over the wall in left for his second homer of the series.

Blake Taylor replaced Javier and walked Soler before Freeman followed with a run-scoring double off the fence in left center to make it 6-0.

Freeman hit a two-out solo homer to center in the seventh off Ryne Stanek to make it a seven-run margin. It was Freeman’s second homer of the series and fifth of the 2021 postseason. — Reuters

PBA imports set for return in Reinforced Conference

November 3, 2021 | 6:26 pm

FOUR-TIME PBA champion import Justin Brownlee is set to return to play for the Barangay Ginebra San Miguel Kings in the Reinforced Conference this season. — ALVIN S. GO

DEFERRED last season because of the pandemic, an import-laced tournament is set to make its return in the Philippine Basketball Association (PBA).

Set for late this month, the league’s Reinforced Conference will see foreign reinforcements taking the PBA floor anew to add flavor to the competition.

Height limit for imports has been set at 6’6”.

As of this writing, all 12 competing teams have identified the reinforcements that will banner their campaigns and are currently finalizing their papers to make it all official.

It will be a mixed bag of old and new faces as far as the imports go.

Newly minted Philippine Cup champions TnT Tropang Giga try to go for back-to-back titles with import McKenzie Moore, who is in his first tour of duty in the PBA.

A native of Santa Rosa, California, Mr. Moore, 29, has played for TnT as reinforcement but in the 2019 edition of the East Asia Super League held in Macau, China.

He also saw action for the Mighty Sports squad that swept its way to the 2019 Jones Cup title in Chinese Taipei. In the team, he was teammates with now-TnT star Mikey Williams.

Mr. Moore also had stints in leagues in New Zealand, Belgium, Greece, Russia, Turkey and Poland.

Joining Mr. Moore in the new batch of PBA reinforcements are former National Basketball Association (NBA) campaigner Shabazz Muhammad of the Meralco Bolts, Antonio Hester of the Terrafirma Dyip, Jaylen Bond of the Blackwater Bossing and Cameron Forte of the Northport Batang Pier.

The Bolts’ Mr. Muhammad, 28, carries with him much credentials after being selected 14^th overall pick by the Utah Jazz in the 2013 draft before his draft rights were traded to the Minnesota Timberwolves.

In six seasons in the NBA, which included a year with the Milwaukee Bucks, he averaged nine points and 2.8 rebounds.

He spent the last two years playing in the Chinese basketball league.

The rest of the reinforcements seeing action in the second conference of the PBA this season are composed of returning imports, led by Barangay Ginebra San Miguel Kings’ Justin Brownlee.

Mr. Brownlee is looking to sustain the success he has had in the PBA, where he has led the Kings to a championship each year since coming on board in 2016.

He helped Barangay Ginebra to the Governors’ Cup championship in 2016, 2017 and 2019 and the Commissioner’s Cup in 2018.

Former best import awardee Mike Harris is also set for a return, but this time for the Magnolia Hotshots after playing for the Alaska Aces in 2018.

Many-time PBA import Henry Walker is to play for the Rain or Shine Elastopainters while league champion Paul Harris will see action for the Phoenix Super LPG Fuel Masters.

The San Miguel Beermen will have Brandon Brown, formerly of Phoenix. Former TnT import KJ McDaniels will now play for the NLEX Road Warriors while Alaska will parade ex-Road Warriors import Olu Ashaolu.

All imports seeing action in the Reinforced Conference must be fully vaccinated.

The PBA is currently in talks with pertinent government agencies, particularly the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID), regarding the staging of the second conference.

But reports have that the league has also secured permits from the Foreign Affairs department for the above-mentioned imports to travel to the country while the league awaits government approval for the import-laced tournament.

The staging of the second conference is in line with the PBA’s push to have at least two tournaments this season as opposed to the lone conference held in 2020 because of the pandemic.

It is angling to have the action back in the National Capital Region after finishing the Philippine Cup in a semi-bubble in Bacolor, Pampanga. — Michael Angelo S. Murillo

Yuka Saso set to choose Japanese citizenship

November 3, 2021 | 6:26 pm

Golfer Yuka Saso is going to be a Japanese citizen when the time comes she has to make a choice.

The 20-year-old Filipino-Japanese made the disclosure to a Japanese news portal on Wednesday, on the eve of the Toto Japan Classic where she is set to compete.

“I chose Japan because of its nationality law,” said Ms. Saso, who was born in San Ildefonso, Bulacan, to a Filipino mother and Japanese father.

Under Japanese law, citizens who hold dual passports must decide by the age of 22 which citizenship to take up.

Ms. Saso, who is currently the world number six player, turns 22 on June 20, 2023.

The golfer previously made it known that choosing between the Philippines and Japan would not be an easy decision to make but that regardless she is proud of her roots on both sides.

“I have in my heart that I am both Japanese and Filipino no matter which one I choose,” she said.

Ms. Saso has represented the Philippines in many international competitions since her junior playing days.

She was one of the country’s representatives in the sport in this year’s Tokyo Olympic Games, where she finished tied for ninth.

While the decision is yet to be made final, Ms. Saso will continue to represent the Philippines in various tournaments, including the Toto Japan Classic.

The $2-million tournament marks the return of Ms. Saso after being out of action for three weeks.

She last played in early October at the Cognizant Founders Cup in New Jersey where she finished joint fourth place.

It will kick off what is a busy November for her on the LPGA Tour, where she will also compete at the Pelican Women’s Championship on Nov. 11-14 and the CME Group Tour Championship on Nov. 18-21, both happening in Florida.

In the Toto Classic, which will run from Nov. 4 to 7, Ms. Saso will tee off with Japanese Hinako Shibuno and veteran Momoko Ueda in the first two rounds at the Seta Golf’s North course. — Michael Angelo S. Murillo

Filipino swimmers laud bubble setup in New Clark City

November 3, 2021 | 6:26 pm

PSI-Swimming-Meet-1 — FILIPINO swimmers commended the successful bubble hosting of the Philippine Swimming, Inc.’s national selection meet in New Clark City. — BCDA

FILIPINO swimmers commended the successful bubble hosting of the Philippine Swimming, Inc. (PSI) Swimming National Selection (SNS) Meet in New Clark City and Clark Freeport Zone, thanking organizers for giving them an opportunity to safely go back in competition after more than a year of the pandemic.

The Bases Conversion and Development Authority (BCDA), in partnership with the Clark Development Corp. (CDC) and PSI, hosted a total of 71 swimmers at the SNS Meet from Oct. 22 to 24 at the New Clark City Aquatics Center in Capas, Tarlac. Bubble participants were billeted at the Hotel Stotsenberg in Clark Freeport Zone, Pampanga.

It was the first competition held at the New Clark City Aquatics Center since the 30^th Southeast Asian Games in 2019. It was also the first local swimming competition hosted by the PSI since the 2019 Philippine National Open, also at the same facility.

Many participating swimmers expressed their exhilaration for being able to participate in a local competition despite the coronavirus disease 2019 (COVID-19) pandemic.

“To hold a competition during a global pandemic is extremely difficult, so I feel very grateful for the opportunity to be able to compete during this time,” Chloe Daos said.

Ianiko Limfilipino, for his part, said the meet was able to remind him again “what it feels like to compete.”

“I surely missed the rush of the competition. I’m also happy to see so many familiar faces from coaches, swimmers and officials,” he said.

PSI bubble participants also praised the New Clark City Aquatics Center for its world-class pools and facilities that have been kept in tiptop condition even with the slowdown in sports activities.

“This is by far the best aquatic facilities we have here in the Philippines. In my opinion, the New Clark City Aquatics Center is at world-class standards, and it’s always a wonderful experience to compete there,” Xiandi Chua said. The All-Star Swim Club standout swept all of her three events during the PSI meet.

Despite changes in sporting events because of the bubble format, participants of the SNS recognized the need for strict health and safety arrangements as part of the new normal.

Joy Rodgers, who previously held the women’s 50m breaststroke record, lauded the organizers of the PSI meet for ensuring the safety of all athletes, coaches and technical staff.

“I really appreciate the efforts of the officiating bodies in implementing the safety protocols to the best of their abilities for this meet to be as safe as possible for everyone, from the weeks leading up to the event up to now,” Ms. Rodgers said during the bubble.

Local swimmers joined the PSI event in a bid to qualify for the 15^th Fédération Internationale de Natation (FINA) World Swimming Championships 2021 in Abu Dhabi, United Arab Emirates this December, and the 19^th FINA World Championships 2022 to be held in Fukuoka, Japan, in May next year.