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Peso may drop on bets of Fed and ECB rate hikes

BW FILE PHOTO

THE PESO may depreciate versus the dollar this week as the market expects more aggressive tightening from the US Federal Reserve and the European Central Bank (ECB) in an effort to clamp down on soaring inflation.

The local unit ended at P53 per dollar on Friday, shedding 5 centavos from its P52.95 finish on Thursday, data from the Bankers Association of the Philippines showed.

This is also the peso’s lowest level in three and a half years, or since its P53.10 print on Dec. 20, 2018.

The peso opened Friday’s session at P52.97 against the greenback. Its weakest showing was at P53, while its intraday best was at P52.925 versus the dollar.

Dollars exchanged increased to $949.3 million on Friday from $732.62 million on Thursday.

Market sentiment weighed on the peso as global crude oil prices posted new three-month highs of over $120 per barrel, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Brent crude prices ended the week at $120.07 a barrel at 1456 GMT. While US West Texas Intermediate crude stood at $118.55 a barrel.

US consumer prices also accelerated in May as oil and food prices soared, leading to the largest annual inflation print since 1981.

US inflation surged 8.6% last month, based on the report of the Labor department.

The inflation report was announced ahead of an anticipated second 50-basis-point rate hike from the US Federal Reserve on Wednesday.

For this week, the dollar may also strengthen as investors price in a hawkish European Central Bank (ECB), said UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion in an e-mail.

The ECB said on Thursday that it would raise its benchmark interest rate by 25 basis points on July 21, a first since 2011. It will hike again on Sept. 8 unless the inflation outlook improves.

Incoming Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla also shared his sentiment of a continued interest-rate increase in June and August to curb inflation. These successive hikes will lift the benchmark rate to 2.75% from 2.25%.

Philippine Inflation quickened in May by 5.4%, driven by soaring food and transport costs, preliminary data from the Philippine Statistics Authority showed.

It was the second straight month that inflation zoomed past the BSP’s 2-4% target band.

For this week, Mr. Ricafort gave a forecast range of P52.80 to P53.20 per dollar, while Mr. Asuncion expects a tighter band of P52.70 to P53.00. — Keisha B. Ta-asan with Reuters

The ‘Janes’ reflect in new US documentary on providing illegal abortions before Roe

SOME 50 years ago, before the landmark US Supreme Court decision Roe v. Wade that legalized abortion, a group of women on the South Side of Chicago worked underground, providing illegal abortions to desperate women in need.

These women had little to no medical background.

“We were just regular people,” said Eileen Smith, a former member of the Abortion Counseling Service, a group more commonly known as the “Janes.”

“I mean, we didn’t have PhDs, we hadn’t studied or anything. We were just a bunch of people that came together to do something that we really cared about.”

Weeks after the bombshell leak of a Supreme Court draft document detailed how a reversal of Roe v. Wade could be on the way, a TV documentary is chronicling the risky work the Janes were doing during the late 1960s and early 1970s.

“Every time when you counseled someone, you had the sense of that woman’s desperation. So, you thought, ‘this is the right thing to do,’” said Martha Scott, a former Jane.

Ms. Scott and six other members were arrested but were released after a night in jail and never convicted.

“We were a bunch of middle-class white ladies,” said Ms. Scott. “We kind of looked like a garden party or something, you know, it was like we wanted to be as unthreatening as possible.”

Shortly after their arrests, the Roe v. Wade decision came down and the need for the Janes was no more.

The new leaked draft Supreme Court decision finds that Roe v. Wade was wrongly decided because the US Constitution makes no specific mention of abortion rights. If confirmed, that would trigger a wave of bans and restrictions in many states.

With new groups now seeking to find ways to help women have abortions safely, former Janes believe their endeavors over 50 years ago could prove to be more poignant and powerful than ever.

“I do think it’s important that lots of people know that when something is going on that you don’t approve of and it’s very destructive for people that even the most ordinary person can make a difference,” said Ms. Scott.

The Janes is available on HBO and HBO Max. — Reuters

Shares seen to move sideways on inflation worries

BW FILE PHOTO

STOCKS are seen to move sideways this week as the latest inflation data of the Philippines and the US may continue to dampen investor sentiment, fueling worries of harsher tightening by their central banks.

The benchmark Philippine Stock Exchange index (PSEi) shed 228.55 points or 3.38% to close at 6,530.04 on Friday, while the broader all shares index dropped by 88.73 points or 2.46% to close at 3,511.93.

Week on week, the PSEi declined by 211.36 from its close of 6,741.40 on June 3.

Analysts said that local shares ended lower last week with the release of inflation data of both the Philippines and the US for May.

“Investors are waiting to see if inflation has peaked or if the Fed will become even more aggressive in combating rising prices,” said Marc Kebinson L. Lood, head of online trading Timson Securities, Inc., in a Viber message.

“The coming week is likely to be choppy, with the majority of the public taking a wait-and-see attitude because there is no market catalyst to fuel index momentum upwards, but bargain-hunting activities with an upside bias should continue as the index approaches oversold levels this week,” he added.

RCBC Securities, Inc. Head of Research Erwin Rommel C. Fuentes said in an e-mail that he expects market sentiment to remain bearish after US inflation accelerated in May.

“In addition to lingering concerns of tighter monetary policy both here and abroad, investors are also weighing the second-round effects from the recent wage and fare hikes,” he added.

US consumer prices accelerated in May as gasoline prices hit a record high and the cost of food soared, leading to the largest annual increase in nearly 40-1/2 years, suggesting that the Federal Reserve could continue with its 50 basis points interest rate hikes through September to combat inflation, Reuters reported.

Inflation increased 1.0% last month after gaining 0.3% in April. This was higher than the 0.7% forecast from a Reuters economists poll.

Reuters added that the broadening and relentless price pressures are forcing Americans to change their spending habits, along with heightened fears of either an outright recession or a period of very slow growth.

Back home, the local statistics authority released last month’s inflation report on Tuesday.

The consumer price index accelerated by 5.4% year on year, the highest level in three and a half years, driven by high food and transport costs.

This matched the median estimate in a BusinessWorld poll. It was also within the midpoint of the 5-5.8% forecast range given by the Bangko Sentral ng Pilipinas (BSP) for the month.

In a briefing earlier last week, BSP Governor Benjamin E. Diokno said that the central bank would continue to review the inflation and growth outlook ahead of the June 23 policy meeting.

The Monetary Board in its May 19 meeting hiked benchmark interest rates for the first time since 2018 by 25 basis points to combat rising inflationary pressures.

Timson Securities’ Mr. Lood said that the rise in crude oil prices and “risky” US treasury yields could also fuel concerns about inflation and the outlook for interest rates. — Luisa Maria Jacinta C. Jocson with Reuters

How PSEi member stocks performed — June 10, 2022

Here’s a quick glance at how PSEi stocks fared on Friday, June 10, 2022.

Duterte sends off patrol ship to South China Sea

SCREENGRAB FROM PHILIPPINE COAST GUARD FACEBOOK PAGE

PRESIDENT Rodrigo R. Duterte on Sunday led the commissioning of a Coast Guard ship that is set to patrol Philippine-claimed territories in the South China Sea, years after foreign policy experts started criticizing him for his government’s lack of presence in the waterway. 

Mr. Duterte, 77, rendered a salute to acknowledge the vessel as he formally allowed its commanding officer to start its official duty, the Philippine Coast Guard said in a Facebook post.

The agency said the ship would roam around the country’s maritime jurisdictions, including the South China Sea in the west and Philippine Rise eastward.

The vessel, named after Filipina revolutionary Melchora Aquino, is one of the two largest white ships acquired by the Transportation department for the coast guard.

It is modeled after the Japan Coast Guard’s Kunigami-class vessel that has a maximum speed of 24 nautical miles per hour and endurance of not less than 4,000 nautical miles, according to the coast guard. 

Earlier in the day, Mr. Duterte and other Philippine officials participated in a ceremony to commemorate the country’s 124th Independence Day.

Defense Secretary Delfin N. Lorenzana, who joined the event, fainted and an ambulance brought him to a nearby hospital where he has since stabilized, the Defense department said in a separate statement.

The Defense chief, 73, fainted due to fatigue after his engagements outside the country, including a recent dialogue in Singapore with his foreign counterparts, the agency said. Extreme temperatures in the Philippine capital might have also led to his fatigue, it added.

Mr. Lorenzana last year said China had tried to stop a key defense treaty between the Philippines and the US.

Filipino experts have said a total foreign policy shift from the US to China is unlikely because the Philippine Defense establishment is staunchly pro-American.

Mr. Duterte led a foreign policy pivot to China when he took office in 2016 in exchange for investment pledges, most of which did not materialize.

The Philippines is a longtime ally of the US and both are committed to a bilateral defense treaty, Mr. Lorenzana had said when China accused Washington of sowing chaos in Southeast Asia.

Filipino activists and patriots have been calling on the Philippine government to pursue an independent foreign policy and scrap the country’s Mutual Defense Treaty with the US, which they said has violated the country’s sovereignty and led to human rights violations.

“Our country is not truly free,”  progressive group Bagong Alyansang Makabayan (Bayan) said in a statement. “We are not free from foreign interventions involving the US and China, which are both in a race to control the South China Sea.”

In 2020, Mr. Duterte threatened to terminate a visiting forces agreement with America after the latter Embassy canceled the visa of Senator Ronald O. Dela Rosa, his former police chief who led his deadly war on drugs.

Activists said the military pact, which lays down the rules for the deployment of troops for war games, has favored the US.

“While we draw strength from learning our past, we must continue believing that there is still wisdom to be gained from our present choices, decisions and actions so we can shape a better future for our people,” Mr. Duterte said in his Independence Day speech.

Vice President Maria Leonor G. Robredo, who has been calling for a coalition of nations against China’s militarization and island-building activities in the South China Sea, urged Filipinos in a recorded video to “affirm what is right and true and assert the truths of our history.”

Ms. Robredo, whose six-year term ends this month, lost to Ferdinand R. Marcos, Jr. in the May 9 presidential race.

Critics have said Mr. Marcos is likely to pursue closer trade and investment ties with China. Last week, he called China the Philippines’ “strongest partner.”

Also on Sunday, civic groups and human rights advocates gathered at a national monument built to honor the victims of the Martial Law regime of Mr. Marcos’ late father.

They cited threats to freedom and scored the rise of disinformation, which academics consider as an emerging threat to democracy.

Political analysts have said civic groups and the international community would closely watch the moves of Mr. Marcos, who is widely seen as a continuity president, after he stayed mum on key issues during the campaign. — Kyle Aristophere T. Atienza

45 Immigration officials ordered fired after scam

PHILSTAR

THE OMBUDSMAN has ordered the dismissal of 45 Immigration officials linked to an airport scheme that extorted money from Chinese nationals in exchange for a seamless entry to the country.

In a dismissal order dated May 27 and sent to reporters on Sunday,  Ombudsman Samuel R. Martires said the officials violated Bureau of Immigration rules. They were also ordered to pay a fine equivalent to a year worth of salary.

Mr. Martires said the workers acted “willfully and with a corrupt motive.”

On Friday, the Justice Department dismissed 18 Immigration officers based on its own investigation of the scam.

Justice Assistant Secretary Neal Vincent M. Bainto told reporters on Viber on Friday the officials had been dismissed for committing gross neglect of duty.

The Ombudsman earlier charged before the Sandiganbayan, the country’s anti-graft court, 43 Immigration officials connected to the scam with corruption.

Allowing foreigners to enter the country without stringent profiling and screening processes was to the “prejudice of the government and public interest,” according to the indictment document sent last week.

The rolls of money received by the agents were made to look like a Filipino treat called pastillas, from which the scheme got its name.

In 2020, Senator Risa N. Hontiveros-Baraquel led a Senate investigation of the scam. A whistleblower from the Immigration bureau testified at a hearing that the Chinese nationals involved in the scheme had been blacklisted from the country and entered through a “special arrangement.” — John Victor D. Ordoñez

SC upheld power over tobacco of FDA — senator

WIRESTOCK-FREEPIK

THE SUPREME Court (SC) has upheld the local Food and Drug Administration’s (FDA) authority to regulate cigarettes and tobacco products in the country, according to a senator.

“This is a major victory for our people and advocates for tobacco control and public health,” Senator Pia S. Cayetano said in a statement on Sunday, citing the decision that upheld the law’s implementing rules.

Ms. Cayetano sponsored and defended the FDA Act of 2009, which empowers the agency to regulate all products affecting health, including cigarettes and tobacco. But the tobacco industry rejected FDA’s authority and brought it to court.

“The health hazards of tobacco cannot be denied, and are backed by strong medical evidence,” the lawmaker said. “It is common sense that these products be subjected to strict regulation by a competent health authority.”

She described the High Court’s ruling “a win for the Filipino people,” saying it would benefit future generations.

“It may have taken 13 years, but it’s these victories that remind me to keep fighting the good fight,” she added. “It’s what makes my job worthwhile.”

Ms. Cayetano said she expects the incoming government to continue to strengthen the country’s health systems and ensure harmful products fall under the jurisdiction of the FDA.

She recalled going to the High Court with Senator Franklin M. Drilon on April 11, 2013 to file a motion to intervene in the legal battle between FDA and Health department and the Philippine Tobacco Institute.

The organization had rejected FDA’s authority then and sought court intervention.

“There is no overlap of functions, as it is clear that petitioners have technical authority over matters of public health,” Ms. Cayetano said, citing the High Court ruling promulgated on June 7.

The rules that implement the FDA Act state that regulations to be promulgated by the body will not apply to those that are covered by specialized agencies and laws, it added. — Alyssa Nicole O. Tan

Bulusan erupts anew, wider area affected by ashfall 

FILE PHOTO | BULUSAN VOLCATNO’S eruption in 2022. — SORSORGON PDERG

BULUSAN Volcano erupted again on Sunday, a week after a similar steam-driven explosion, and spewed ash across a wider area, local authorities said.   

The latest phreatic eruption started at 3:37 a.m. and lasted for 18 minutes, based on the Philippine Institute of Volcanology and Seismology’s (Phivolcs) bulletin.   

“More areas have been reached by ash fall,” the Sorsogon provincial office said.  

Among the areas affected are the towns of Juban, Irosin, Casiguran, and Magallanes, the provincial government said in an advisory as response teams   started clearing operations along main roads and assessing the need for evacuation.   

Residents of Juban who evacuated last week have since gone back home after their villages were cleared of ash fall.   

In the town of Bulusan, the municipal disaster management office said it has evacuated some residents, particularly those who were most vulnerable.  

Power, water, and telecommunication services were all “functional,” it said.    

Phivolcs said alert level 1 remains in effect for Mt. Bulusan, which means it is in an “abnormal condition” and sudden eruptions are possible.   

The agency first raised the alert level from zero on June 5 following a 17-minute eruption that started at 10:37 a.m.   

“Local government units and the public are reminded that entry into the 4-kilometer radius Permanent Danger Zone must be strictly prohibited and that vigilance in the 2-kilometer Extended Danger Zone on the southeast sector must be exercised due to the increased possibilities of sudden and hazardous phreatic eruptions,” Phivolcs said.   

Mt. Bulusan, located about 565 kilometers southeast of the capital Manila, last erupted in June 2017, which was recorded as a “minor phreatic eruption” by Phivolcs. — MSJ 

DBM asserts new migrant workers’ agency can’t use POEA funds yet 

THE DEPARTMENT of Budget and Management (DBM) on Sunday told Migrant Workers Secretary Abdullah D. Mama-o that he has no authority to use funds under the Philippine Overseas Employment Administration (POEA). 

In a statement from the Labor department, DBM Officer-in-Charge Tina Rose Marie L. Canda pointed out that the Department of Migrant Workers (DMW) has yet to be fully constituted.  

“Since it did not meet the clear requirements of the law, there will be no complete transfer of funds unless and until the DMW is fully constituted,” according to a letter written by Ms. Canda. 

The requirements are: a budget for the next fiscal year, an effective implementing rules and regulations, and manpower structure. 

President Rodrigo R. Duterte signed the law establishing the DMW in December last year and appointed Mr. Mama-o as head in March. 

The new department will be absorbing existing government agencies dealing with overseas Filipino workers, including the POEA, to ease procedures relating to migrant workers.   

Ms. Canda said POEA Administrator Bernard P. Olalia “shall continue to exercise authority on its operations until the full constitution of the DMW.”   

President-elect Ferdinand R. “Bongbong” Marcos, Jr., who will be taking office on June 30, has named migrant workers’ advocate Susan V. Ople as the next DMW chief. — John Victor D. Ordoñez 

Cities of Khulna, Davao explore sisterhood pact, business opportunities

BANGLADESHI AMBASSADOR F.M. BORHAN UDDIN — BW FILE PHOTO/ MMPADILLO

DAVAO City in the Philippines and Khulna in Bangladesh are looking at a sisterhood pact as part of initiatives to expand economic and cultural ties between the two countries.   

Bangladeshi Ambassador F.M. Borhan Uddin, who was in Davao last week, said a city-to-city agreement would help facilitate potential business partnerships in agriculture and tourism, among other sectors.   

Mr. Uddin met with Davao City local government officials, members of the city business chamber, and the Mindanao Development Authority for exploratory talks.  

He said Bangladeshi company Square Pharmaceuticals Ltd., for example, is eyeing to set up a manufacturing plant in the Philippines.  

“We will request to divert the company here in Davao City if possible. We will try to negotiate with the company to come here to Davao City and establish their plant,” he said in an interview.   

On tourism, the envoy said Davao and the Philippines as a whole are not yet in the radar of Bangladeshi travelers.  

“Many Bangladeshis are coming to Singapore, Thailand, and Malaysia and they don’t know about Philippines,” he said.    

“We already have flights to Singapore so the connectivity is present… So we’ll work with the travel agencies of Bangladesh and Davao and Cebu to make that (tour packages) possible.”  

Honorary Consul General of Bangladesh in Mindanao Joji Ilagan-Bian said they can organize online meetings among travel agencies from Bangladesh, Cebu and Davao City to come up with packages.  

The Philippines and Bangladesh are celebrating the 50th anniversary of their diplomatic relations this year. — Maya M. Padillo 

Lawyers’ group asserts right to protest not contingent on permits 

PHILIPPINE STAR/ WALTER BOLLOZOS

A LAWYERS’S group on Sunday hit Philippine police after its top officials recently claimed that the right to protest in public is contingent on securing a permit.  

“The right is enshrined in the Constitution, which supersedes any statute, ordinance, executive order or regulation issued by any public official or agency,” the National Union of People’s Lawyers (NUPL) said in a statement.   

“A permit is not essential for the assembly itself,” it said.   

NUPL said that even the rally permit under Batas Pambansa Blg. 880, which the city government of Manila recently ordered to be “strictly” enforced by local authorities, is only an administrative requirement that “allows the local government to regulate — not ban — the time and place of public assemblies.”  

“By applying for a permit, the local government is given notice that a specific public place will be the site of an upcoming assembly, giving it time to reroute traffic, deploy police officers, and reserve the location for the applicant in case other groups also intend to use the same place,” it said. “As a matter of fact, if the mayor fails to act on the application within 2 working days, the permit is already deemed granted.”  

NUPL said that because of the recognized importance of the right to protest, the law sets “an extremely high bar for its curtailment.”  

“Only the existence of a ‘clear and present danger’ — meaning, an evil that is both extremely serious and imminent — can justify restrictions to it.”  

The group said even if organizers failed to apply for a permit, BP 880 itself states that “no person can be punished or held criminally liable for participating in or attending an otherwise peaceful assembly.”  

“This is one aspect of the law frequently violated by the police when, as in recent weeks, they arrest peaceful protesters and even journalists covering the events.”  

Authorities last week arrested more than 90 people, including peasants and advocates as well as journalists, in Tarlac City in northern Philippines for allegedly holding an illegal assembly.   

Several were released soon after while 83 were charged for illegal assembly, among other offenses. Those facing cases were all released as of Sunday afternoon after posting bail. — Kyle Aristophere T. Atienza 

12 Abu Sayyaf members surrender in Sulu

PHILIPPINE ARMY KALINAW NEWS

A DOZEN members of the Abu Sayyaf, a kidnap-for-ransom group that has also in recent years allied with the extremist Islamic State, turned themselves in to security forces Friday, the military reported on Sunday.  

The 12 men surrendered to the Joint Task Force Sulu through the 1101st Infantry Brigade headquarters in Talipao, Sulu on June 10 and gave up weapons, including M16 rifles, grenade launches and pistols, according to the JTF commander, Maj. Gen. Ignatius N. Patrimonio.  

“The influx of (Abu Sayyaf) returnees is an indicative of our successful peace and security campaign in Sulu. Let us therefore continue our concerted efforts to finally end terrorism,” Mr. Patrimonio said in a statement released by the Philippine Army.   

The government has a program for former rebel group members that include social assistance and livelihood training.   

Since 2017, the Sulu task force has recorded 823 Abu Sayyaf returnees, according to Mr. Patrimonio.  

For this year, 65 members of the group have surrendered so far, he added. — MSJ  

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