US House passes ocean shipping bill to allay export backlogs

June 14, 2022 | 3:13 pm

WASHINGTON – The US House of Representatives approved legislation Monday to improve oversight of ocean shipping, which supporters say will help curb inflation and ease export backlogs.

The bill was approved 369-42 and will head to the White House for President Joe Biden’s signature. Biden said in a statement he looked forward to signing it into law.

The bill would boost the investigatory authority of the Federal Maritime Commission (FMC), the US agency that oversees ocean shipping, and increase industry transparency.

It would allow FMC to launch probes of ocean common carriers’ business practices and to apply enforcement measures, require ocean common carriers to report to the FMC “total import/export tonnage” each calendar quarter and would bar ocean carriers from unreasonably declining opportunities for US exports under new rules to be determined by the FMC.

Senator Maria Cantwell said the bill gives the FMC “the tools it needs to cut down on extraneous shipping costs and stop shipping carriers from leaving American products like apples, hay, milk and potatoes behind.”

The Ocean Shipping Reform Act passed unanimously in the Senate in March. Similar legislation passed the House in December.

“Inflation is the greatest frustration America has right now, and backlogs at our ports are one of the biggest drivers of price hikes that we will address through this bill,” Senate Democratic Leader Chuck Schumer said Monday.

Congress has few tools to combat inflation, which hit 8.6% in the 12 months through May, according to the US consumer price index. Beyond the shipping bill, Democrats are pushing measures to lower prescription drug prices. Read full story

Imports in the nation’s major retail container ports are expected to reach near-record volume in June as retailers seek to meet consumer demand and protect themselves from disruptions in West Coast ports, the National Retail Federation said.

American Trucking Asssociations President Chris Spear said the “bill provides important tools to address unjustified and illegal fees collected from American truckers by the ocean shipping cartel.”

The World Shipping Council did not immediately comment late Monday, but said in a statement in March when the Senate was considering the legislation that it did not address the root causes of US congestion.

“Americans continue to import goods at record levels – so much so that the U.S. ports and landside logistics workforce is unable to process all the cargo. Ocean carriers have deployed every vessel and every container available, and are moving more goods than at any point in history, but the U.S. landside logjams are keeping vessels stuck outside US ports,” the group said. – Reuters

Biden adviser Sullivan raised concerns with China over North Korea

June 14, 2022 | 3:10 pm

WASHINGTON – US national security adviser Jake Sullivan has raised concerns with China’s top diplomat Yang Jiechi over Beijing’s veto at the United Nations of a U.S.-led push to impose more sanctions on North Korea, a senior U.S. official said.

Washington has warned that North Korea’s first nuclear test since 2017 could happen at “any time.” China says it does not want to see that happen, which is partly why in May it vetoed a bid to impose new UN sanctions on Pyongyang over renewed ballistic missiles launches.

A senior US administration official told reporters during a briefing on a 4-1/2-hour meeting between Sullivan and Yang in Luxembourg on Monday that the United States believed Beijing and Washington could cooperate on the North Korea issue.

“Jake raised concerns, in particular, about the veto, which comes following a significant series of ballistic missile launches in violation of previous UN Security Council resolutions and the preparations … for potential nuclear tests,” the official said.

“Each side laid out their positions and the way we see the situation, and certainly Jake made very clear that we believe this is an area where the United States and China should be able to work together,” the official said.

US Secretary of State Antony Blinken said on Monday that Washington will maintain pressure on North Korea until Pyongyang changes course, following a meeting with his South Korean counterpart who urged China to persuade the North not to resume nuclear testing.

A readout by China’s Xinhua news agency on the meeting did not go into details on what was discussed, only saying that the two sides had exchanged views on international and regional issues such as the “Korean Peninsula nuclear issue.”

Xinhua said Yang had in the meeting raised how China-US relations were currently in a “very difficult situation” with the US “insisting on further containing and suppressing China in an all-round way.” He urged cooperation, Xinhua added.

The Sullivan-Yang meeting follows a late May call between the two officials after which Sullivan said it was possible President Joe Biden and Chinese leader Xi Jinping could speak soon, though no such engagement has been announced. Read full story

The official said the United States and China were maintaining high-level communication, including a meeting between US Defense Secretary Lloyd Austin and his Chinese counterpart at a forum in Singapore on Friday.

“I’d expect to see additional potential meetings in the months ahead, but nothing specific planned at this time, the US official said when asked if a Xi-Biden meeting or call had been discussed.

The White House said in an earlier statement on the Luxembourg meeting that the United States sought to keep lines of communication open with Beijing to manage bilateral competition.

Relations between China and the United States are at their lowest point in decades, as the two countries spar over difference on Chinese-claimed Taiwan, China’s human rights record, and what Washington says is Beijing’s growing economic and military coercion around the world. – Reuters

Boeing CEO Calhoun bullish on industry demand for airplanes

June 14, 2022 | 3:04 pm

ARLINGTON, Virginia – Industry-wide demand for airplanes is strong and will continue to improve as airlines work to replace aging fleets, buy more efficient models and continue to see passenger growth, Boeing Co BA.N Chief Executive Dave Calhoun said on Monday.

“Demand for airplanes is as robust as I’ve ever seen it. I think it will get more robust,” Mr. Calhoun told Reuters and another news outlet on the sidelines of an event at Boeing‘s new headquarters in Arlington, Virginia. The demand for airplanes “is more than a bubble,” he added.

Mr. Calhoun described the decision to move the headquarters to Arlington from Chicago, announced last month, as “not a momentary thing. It wasn’t an auction.”

Mr. Calhoun, speaking to reporters after an event Monday to herald the HQ announcement, said Boeing did not consider relocating its headquarters back to Seattle, where it had been based until its move to Chicago in 2001. “It was a simple consolidation of footprints,” he said.

Boeing, a major US defense contractor, also plans to develop a research and technology hub in the Arlington area, home to the Pentagon and across the Potomac River from the US capital.

“Our biggest customer in the world is right across the way — the Pentagon is the biggest in the world,” Mr. Calhoun said. “This is just a smart spot.”

Boeing‘s new headquarters is in an Arlington office it has had since 2014 where it has significant unused space, and which sits just blocks from Amazon.com’s AMZN.O second headquarters, known as HQ2, which is under construction.

“This innovation campus really got jelled when Amazon came here,” Mr. Calhoun said.

The Chicago headquarters – a 36-floor, $200 million riverfront skyscraper – has been at the crossroads of a cost-cutting campaign for Boeing, which has shed real estate, including its commercial airplane headquarters in Seattle.

With the move to Arlington, some key executives, including Mr. Calhoun and the chief financial officer, will be based there, but not a lot more.

Asked how many jobs would move to Virginia from Chicago Calhoun said: “Almost none — like none.”

“Seventy percent of my day no matter where I am is virtual anyway because I run a large distributed company,” Mr. Calhoun said.

Boeing‘s headquarters move to Chicago in 2001 came after 85 years in Seattle, following its 1997 merger with St. Louis-based rival McDonnell Douglas.

Raytheon RTX.N announced last week that it also will move its headquarters to suburban Washington, joining the other largest defense contractors in the area.

“This industry is fighting every other industry to get STEM talent — that fight’s forever,” Calhoun said. “Raytheon, Northrop (Grumman), Boeing, Airbus — we’re all hunting for it.”

Asked if there was any movement on efforts to resume more airplane deliveries in China, Mr. Calhoun told Reuters he remains “constructive, and I believe someday good things will happen, but I can’t tell you the day.” – Reuters

No way out for Ukrainians in embattled city as Russian forces destroy last bridge

June 14, 2022 | 2:59 pm

Ukraine-Russia-flag-toy soldiers — Army soldier figurines are displayed in front of the Ukrainian and Russian flag colors background in this illustration taken, Feb. 13, 2022. — REUTERS/DADO RUVIC/ILLUSTRATION

KYIV – Russian forces cut off all routes for evacuating citizens from the eastern Ukrainian city of Sievierodonetsk by destroying the last bridge linking it to a Ukrainian held city on the other side of the river, a Ukrainian official said.

Russian troops were “trying to gain a foothold in the central part of city“, the Ukrainian military said on Tuesday in its daily roundup of the conflict in various parts of the country.

“The situation in Sievierodonetsk is extremely aggravated – the Russians are destroying high-rise buildings and Azot,” Serhiy Gaidai, governor of the Luhansk region, said in a post on Telegram. A day earlier he said hundreds of civilians were sheltering in the grounds of the Azot chemical plant, which had been shelled by Russian forces.

Ukraine has issued increasingly urgent calls for more Western heavy weapons to help defend Sievierodonetsk, which Kyiv says could hold the key to the battle for the eastern Donbas region and the course of the war, now in its fourth month.

On Monday Gaidai had said on social media that some 70% of the city was under enemy control, and the destruction of the last bridge across the river to the twin city of Lysychansk meant any civilians still in Sievierodonetsk were trapped, and it was impossible to deliver humanitarian supplies.

The latest Ukrainian military situation report was filled with forboding over Russian forces building up in several parts of the Donbas.

It reported the enemy was “creating conditions for the development of the offensive on Sloviansk”, and an offensive on the towns of Lyman, Yampil and Siversk – all west of Sievierodonetsk and Lysychansk.

Late on Monday, President Volodymyr Zelenskiy said the battle for the eastern Donbas would go down as one of the most brutal in European history. The region, comprising the provinces of Luhansk and Donetsk, is claimed by Russian separatists.

“For us, the price of this battle is very high. It is just scary,” he said.

“We draw the attention of our partners daily to the fact that only a sufficient number of modern artillery for Ukraine will ensure our advantage.”

Russia’s main goal is to protect Donetsk and Luhansk, Kremlin spokesperson Dmitry Peskov said on Monday, after the leader of one of the separatist regions asked for additional forces from Moscow. Read full story

Ukraine needs 1,000 howitzers, 500 tanks and 1,000 drones among other heavy weapons, Presidential Adviser Mykhailo Podolyak said on Monday.

Moscow issued the latest of several recent reports saying it had destroyed U.S. and European arms and equipment.

Russia’s defense ministry said high-precision air-based missiles had struck near the railway station in Udachne northwest of Donetsk, hitting equipment that had been delivered to Ukrainian forces.

Ukraine‘s interior ministry on Telegram said that Udachne had been hit by a Russian strike overnight Sunday into Monday, without mentioning whether weapons had been targeted.

Moscow has criticized the United States and other nations for sending Ukraine weapons and has threatened to strike new targets if the West supplied long-range missiles.

The European Commission will recommend granting Ukraine official status as an EU candidate country, Politico reported late on Monday, citing several unnamed officials.

Commission President Ursula von der Leyen said on Saturday that the EU executive’s opinion on Ukraine‘s request to join would be ready by the end of this week.

MARIUPOL AGAIN?

Russia’s RIA news agency quoted a pro-Moscow separatist spokesperson Eduard Basurin as saying Ukrainian troops were effectively cut off in Sievierodonetsk and should surrender or die.

The situation risked becoming like Mariupol, “with a large pocket of Ukrainian defenders cut off from the rest of the Ukrainian troops”, according to Damien Magrou, spokesperson for the International Legion for the Defense of Ukraine that has had forces in Sievierodonetsk.

During the fall of Mariupol last month, hundreds of civilians and badly wounded Ukrainian soldiers were trapped for weeks in the Azovstal steelworks.

Russia has denied targeting civilians in what it calls a “special operation” to restore Russian security and “denazify” its neighbor.

Ukraine and its Western allies call this a baseless pretext for an invasion which has killed thousands of civilians and raised fears of wider conflict in Europe.

More than 5 million people have fled and the world has been hit by a food and energy crisis, dividing Western nations over how to handle it. Read full story

After failing to take the capital Kyiv following the Feb. 24 invasion, Moscow focused on expanding control in the Donbas, where pro-Russian separatists have held territory since 2014. Russia has also tried to capture more of Ukraine‘s Black Sea coast.

“The entire front is being subjected to constant shelling,” Donetsk regional governor Pavlo Kyrylenko told Ukrainian TV on Monday evening.

The towns of Maryinka, Krasnohorivka, Vuhledar were hit in the coal-producing belt and Avdiivka, home to a big coking plant, he said.

Officials in the Russian-backed separatist-controlled Donetsk region said at least three people, including a child, were killed and 18 were wounded by Ukrainian shelling that hit a market in Donetsk city.

The Donetsk News Agency showed pictures of burning stalls at the central Maisky market and several bodies on the ground. The news agency said 155-mm caliber NATO-standard artillery munitions hit parts of the region on Monday.

Russian news agencies reported a shell had fallen on a maternity hospital in Donetsk, triggering a fire and prompting staff to send patients into the basement. Read full story

Reuters could not independently verify the reports. There has been no immediate reaction from Kyiv to the reports. – Reuters

My father, my hero: Celebrating all Super Dads with SM Supermalls

June 14, 2022 | 9:37 am

Father’s Day is a reminder of the important and sometimes overlooked role that dads play in our lives. Everybody who has played a father figure in our lives should be honored and celebrated. And because they carry many responsibilities in our homes, our super dads deserve an abundance of love and appreciation on their special day.

This June, show them an aweSM time by bringing them somewhere special or taking them shopping – this should be much more than a ‘Hallmark holiday’!

Buy him something SUPER at the Super Dad Sale. From June 17 to 19, enjoy an exclusive 3-day mall-wide sale just for your Super Dad. Score some of the hottest deals in fashion, accessories, gadgets, and gizmos at a discounted price. Take him to the Dad’s Hall at SM Supermalls and buy him cool merch and collectibles or take him there to see the vintage car and big bike exhibit.

Treat him to a feast fit for a king. They say the way to a man’s heart is through his stomach. So, on his special day, indulge him with a feast. Bring the whole family and order all his favorites! A lot of restaurants are giving away super dining deals from June 13 to 19.

Get him to do the Super Dad TikTok Challenge with you. Join SM Supermalls’ Super Dad TikTok Challenge from June 12 to 19 and go twinning with your real life super hero and bust those moves on TikTok! You might be one of the lucky winners of SM gift certificates.

Furdads are Super Dads too!

To recognize how important furdads are to their furbabies, SM Supermalls will be hosting a Pack Walk Costume Parade and Contest at the Paw Park! Dress up as a hero with your furbaby as sidekick, and get a chance to win prizes. Visit www.smsupermalls.com and drop by the Paw Park nearest you!

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As we celebrate this special day for our Super Dads, may you be reminded of his unconditional love for you and your family. Honor your Super Dads this June, and spend quality time with them. That could just be the best gift you can give them. So, head on to your favorite SM mall, and show your dad the grandest time this Father’s Day. The King of the Household and our hearts deserve to be celebrated.

For more information, visit www.smsupermalls.com. To get the latest updates, follow SM Supermalls on Facebook, Instagram, Twitter, and YouTube @smsupermalls.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber to get more updates from BusinessWorld: https://bit.ly/3hv6bLA.

FDI net inflows drop to 10-month low

June 14, 2022 | 12:34 am

US dollar bills are seen on a light table at the Bureau of Engraving and Printing in Washington in this Nov. 14, 2014 file photo. — REUTERS

NET INFLOWS of foreign direct investment (FDI) slumped to its lowest in 10 months in March, as Russia’s invasion of Ukraine darkened the outlook for investments.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed FDI net inflows dropped by 9.8% to $727 million in March from $806 million a year earlier.

This was the lowest monthly FDI inflow recorded since the $452 million seen in May 2021.

The month’s FDI net inflows fell by 18.5% from $893 million in February.

“While the country’s macroeconomic fundamentals remain sound, external risks, such as the impact of Russia’s invasion of Ukraine on commodities and financial market condition, the start of policy tightening in several major central banks and the resurgence of COVID-19 (coronavirus disease 2019) cases in many Asian economies, may have contributed to investors’ concern about the outlook on the global economic recovery,” the BSP said in a statement.

Russia began its invasion of Ukraine on Feb. 24, sending shockwaves throughout the global economy. Oil and commodity prices soared, clouding the outlook for economic growth.

The US Federal Reserve raised its policy interest rate by 75 basis points since March, and is expected to continue policy tightening to cool inflation.

BSP data showed non-residents’ net investments in debt instruments of local affiliates jumped by 45% to $543 million in March, from $374 million a year ago.

Also, investments in equity and investment fund shares dropped by 57.3% in March to $184 million.

Non-residents’ net investments in equity capital (other than reinvestment of earnings) plunged by 69.6% to $106 million from $349 million in the same month last year. Equity capital placements fell by 68.7% to $118 million, while withdrawals dropped by 58.2% to $12 million.

The equity placements were mainly from Japan, the United States, and Singapore, and invested mostly in manufacturing, real estate, and financial and insurance industries.

Reinvestment of earnings slipped by 5.4% to $78 million year on year in March.

“The slowdown in net FDI may be affected by worsening global conditions as foreign investors cope with tighter conditions, i.e., higher interest rates, in their respective economies,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.

FIRST QUARTER
For the first quarter, total FDI net inflows rose by 2% to $2.43 billion from $2.39 billion during the same period in 2021.

“Higher net inflows from intercompany borrowing/lending between foreign direct investors and their subsidiaries continued to make up for the lower net inflows from new equity and reinvested earnings,” the BSP said.

In the January to March period, foreign investments in debt instruments rose by 33.5% year on year to $1.9 billion.

Investments in equity and investment fund shares declined by 44.2% to $540 million in the first quarter.

Net foreign investments in equity capital dropped by 57.6% to $311 million. Equity capital placements dropped by 58.1% to $352 million, while withdrawals slid by 61.1% to $42 million. Most of these placements were from Japan, the United States, Kuwait, and Singapore.

Reinvestment of earnings dipped by 2.7% to $229 million in the first quarter.

“FDI flows remained positive due to expectations for a sustained economic recovery… The pace moderated compared to the same period last year,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

Mr. Mapa noted most of the investments were in debt instruments, while “fresh” FDI equity placements declined, reflecting the “anxiety over the ongoing policy normalization efforts of major central banks and their likely implications on the financial sector and economy.”

“Going forward, we expect FDI to remain positive but overall equity placements and reinvestment of earnings may take a while longer to improve. Investors would likely want to gauge the health of the global economy and or how resilient domestic growth will be in the face of the triple threat of faster inflation, higher borrowing costs and record high debt,” he said.

Ms. Velasquez said the economic outlook for the Philippines remains “bright” despite higher inflation and the BSP’s policy tightening. She noted the incoming administration’s infrastructure plans and the implementation of structural reforms will help attract more investments.

“In 2022 and 2023, the Philippines is expected to be one of the leaders in the growth story of Asia and thus, this will likely lead to an overall increase in net FDI for the year,” she said.

The central bank projects FDI net inflows will reach $11 billion this year. — Keisha B. Ta-asan

Gov’t agencies urged to review budget proposals

June 14, 2022 | 12:33 am

Mural-worker — A worker paints social distancing markers on the ground at the Old Balara Elementary School in Quezon City. — PHILIPPINE STAR/ MICHAEL VARCAS

THE DEPARTMENT of Budget and Management (DBM) on Monday urged government agencies to review their budget proposals for 2023, amid limited fiscal space.

In a statement, the DBM said agencies should reevaluate their budget proposals for next year “to ensure the efficient use of limited resources and to provide additional fiscal space for new public programs and projects.”

The Development Budget Coordination Committee (DBCC) last month approved a record P5.268-trillion cap on the national budget for 2023, which represents 22.1% of the gross domestic product (GDP). Next year’s budget is 4.9% higher than the P5.02-trillion budget for this year.

In National Budget Memorandum (NBM) No. 144, the DBM said agencies should make sure that Tier 1 or existing programs and Tier 2 or new programs are in line with the government’s spending direction and other key strategies, as well as the incoming administration’s priorities.

The programs should also be implementation-ready and can be completed within a year. These should also reflect the agency’s absorptive capacity.

“For the National Government to maximize the use of limited resources and to practice prudent public financial management, the departments/agencies are hereby encouraged to reevaluate their Tier 1 proposals,” the DBM said.

“Given the absence of additional fiscal space for FY 2023, these adjustments in the Tier 1 levels may provide some headroom for direly needed Tier 2 proposals for new and expanded PAPs (program, activity and projects).”

Budget proposals for Tier 2 or new programs should focus on “health-related expenditures, disaster-risk management, social security, digital economy/government, local government support, and growth-inducing expenditures which include crucial and shovel-ready infrastructure projects, among others,” DBM said.

The DBM said these priorities will help accelerate the economy’s recovery from the pandemic.

The DBCC set a 6-7% GDP growth target for 2023, slightly lower than the 7-8% target for this year. The budget deficit is expected to decline to 6.1% of GDP in 2023, from 7.6% this year.

The outstanding National Government debt reached P12.68 trillion, equivalent to 63.5% of GDP, as of the first quarter.

“While this is significantly lower than the historic high of 71.6% of GDP debt ratio recorded in 2004, downside risks for recovery remain high with the ongoing pandemic and recent global developments, such as the Ukraine-Russia war,” the DBM said, adding these may add to uncertainty.

“This will require the government to be more prudent in managing its fiscal position to promote long-term sustainability, and ensuring that high-impact expenditure items will be prioritized to maximize the limited public funds available.”

Also, the DBM reminded National Government agencies to make sure they do not duplicate any functions assigned to local government units (LGUs).

“(The National Government agencies should) instead shift their focus to developing service delivery standards, and capacitating local governments in areas of implementation and management of devolved functions and public financial management,” it added.

Starting this year, LGUs received a bigger share of the National Government’s tax collections, alongside the transfer of basic services due to the implementation of the Supreme Court’s Mandanas ruling.

The ruling is named after Batangas Governor Hermilando I. Mandanas who successfully challenged the government’s previous position that LGUs were entitled to a smaller share of National Government funds. — TJT

BSP to turn GS purchasing window into regular facility

June 14, 2022 | 12:32 am

By Keisha B. Ta-asan

THE BANGKO Sentral ng Pilipinas (BSP) on Monday said it will reconfigure its government securities (GS) purchasing window into a regular liquidity facility under the interest rate corridor (IRC) framework.

“Reconfiguring the GS window into a regular liquidity facility that can operate under normal and crisis conditions ensures consistency with overall monetary strategy,” BSP Governor Benjamin E. Diokno said at his weekly press briefing.

“This is consistent with the BSP’s thrust to develop a broad range of instruments and new operating procedures to fight future crises.”

The central bank started issuing 28-day BSP bills in September 2020, as an additional tool to manage liquidity in the financial system amid the pandemic.

“The issuance of BSP Securities provides an additional monetary tool for implementing monetary policy. It also promotes greater flexibility in managing liquidity in the financial system under the interest rate corridor or IRC framework,” Mr. Diokno said.

The normalization of the BSP’s GS window involves three stages: transition, reconfiguration, and re-launching.

The transition stage includes scaling down its daily purchases in the GS window as it shifts into a standard facility. Nevertheless, the facility could be reactivated if justified by market conditions.

The second stage involves the conversion of the GS window from being a standing facility into an active operation that is consistent with the overall monetary strategy consistent with the IRC framework.

The BSP introduced the IRC system to guide short-term market interest rates towards the central bank’s policy rate. It consists of a rate at which the BSP lends to banks (typically an overnight lending rate) and a rate at which it takes deposits from them (deposit rate).

When the reconfiguration is finished, the BSP will re-launch the government securities outright transactions. Market-sounding activities and technical assistance from international institutions will be included.

“Basically, BSP is just reversing what it did during the pandemic when it flooded the market with excess liquidity. Now that inflation can no longer be ruled out as transitory, BSP’s reconfiguration of its open market operation using GS will have to do the heavier lifting. BSP has to normalize its balance sheet too,” former BSP Deputy Governor Diwa C. Guinigundo said in a Viber message.

The share of outstanding placements in BSP Securities accounted for 35% of the total amount of system liquidity absorbed by the BSP through its liquidity management facilities as of end-May 2022.

“With the economy in much better shape and at hopefully what is the tail end of the pandemic, BSP opted to close this emergency window as there was less need for such a facility,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

“Any increases in yield are likely tied to other developments such as accelerating inflation or increase government borrowing and normal market trading activity is now taking place.”

Inflation jumped to 5.4% in May, the fastest in three and a half years, as food and fuel prices continued to climb amid the prolonged Russia-Ukraine war.

The BSP last month raised its average inflation forecast for 2022 to 4.6% from 4.3%, exceeding the 2%-4% target.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message these liquidity management tools “provide greater options, leeway, and flexibility to monetary authorities to effectively respond to evolving economic and business conditions and challenges, such as the COVID-19 (coronavirus disease 2019) pandemic/lockdowns.”

‘Compelled by circumstances’: Some banks forecast 75-bp Fed hike

June 14, 2022 | 12:31 am

SINGAPORE — Investment banks have ramped up projections for US interest rate rises following a hotter-than-expected inflation reading, with several now forecasting a 75-basis-point (bp) hike this week.

The US Federal Reserve meets on Wednesday in the midst of heavy selling in stock and bond markets following May data showing the US consumer price index (CPI) rising at its fastest pace since 1981.

A 75-bp hike would be the biggest since 1994.

CME’s FedWatch tool, based on the prices of short-term credit futures, shows about a 1/4 chance of a 75-bp rate hike at this month’s meeting and a better-than-even chance of there being at least one 75 bp hike by next month’s meeting.

“The May inflation data was so concerning that we think the Fed will react even more aggressively in moving rates ‘expeditiously,’” BNY Mellon strategist John Velis said on Monday. His note forecast a 75-bp hike on June 15, up from 50 bps.

“We felt compelled by circumstances to change our view (and) so communicate it.”

Barclays and Jefferies also forecast a 75-bp hike for this week.

“US CPI surprised to the upside and continues to show broad and persistent price pressures,” Barclays analysts said in a Sunday note. “We think the Fed probably wants to surprise markets to re-establish its inflation fighting credentials.”

Markets have braced, too, with a sell-off in short-dated Treasuries along with futures tied to the Fed policy rate extending in Asia on Monday. Yields on the two-year Treasury note are at their highest since late 2007. — Reuters

Fête de la Musique PH is back live

June 14, 2022 | 12:07 am

A POPULAR free music event celebrated in 130 countries around the world is going back live after hosting online editions over the past two years of the COVID-19 pandemic.

The Philippine edition — Fête de la Musique PH — will have a series of live celebrations across Metro Manila, Palawan, Baguio, Cebu, and Siargao from June 21 to 28.

This year’s music festival is titled “Tara Allez!” or “let’s go!” in both colloquial Filipino (tara) and French (allez). In commemoration of the 75^th anniversary of Franco-Phil bilateral relations, it will feature new collaborations between artists from the Philippines and France. It also aims to harness the healing power of music, forge new friendships, and build and support communities.

“We’re excited to bring the Fête de la Musique celebrations back to the beautiful places of the Philippines,” Executive Director of Alliance Française de Manille Xavier Leroux said in a statement. “This year’s festivities will find us rediscovering the joys of live and in-person music once again.”

As part of Fête de la Musique’s continued partnership with the Department of Tourism (DoT), this year’s festivities will celebrate not only the artists and music from various parts of the country, but will also showcase the rich culture of some of the Philippines’ popular tourist destinations.

“Now that the Philippines is open to fully vaccinated individuals from all over the world, there’s no better time than now to explore our islands, and immerse in our vibrant arts, music, and culture,” DoT Assistant Secretary for Branding and Marketing Communications Howard Uyking said in a statement.

THE PERFORMANCES
On June 25, the main stage for Fête de la Musique 2022 will be at the Puerta Real Gardens, Intramuros, Manila, and will feature performances from the Cheats, The Itchyworms, Lola Amour, Anima Tierra, and a special number by Brass Pas Pas Pas Pas featuring Curtismith, Toni B., Faye Yupano, and Zsaris.

Fête PH 2022 has teamed up with various partners across the archipelago to support their own physical Fete-stivities such as Lokal Lab for the Siargao stage on June 21 at the Santa Fe Beachfront Playground; Kalye Artisano x Lio Estate for the El Nido stages on June 26 and 28 at El Nido, Palawan; and Melt Records x Alliance Francaise de Cebu for the Cebu stages on June 25 at Draft Punk and June 26 in La Vie.

French artists Marc Fichel, DJ Blutch, and Maxime Cozic will be flying in from Paris to perform around the country.

Singer-songwriter and pianist Marc Fichel will perform at the Sofitel hotel in Pasay City on June 23. Mr. Fichel will also be performing at the main stage in Intramuros on June 25 in a collaboration with The Voice Teens grand winner Cydel Gabutero; and alongside Palawan-based musicians in El Nido on June 26.

DJ Blutch, known for his abstract hip hop and house mixes with video mapping will also perform in Sofitel on June 24, and at the main stage in Intramuros on June 25 in a collaboration with a surprise Filipino movement act. He will be joining Cebu-based musicians on June 26.

Dancer and choreographer Maxime Cozic will perform an 18-minute solo piece and in collaboration with embodiment artist Dona Tumacder-Esteban and improvisational drum circle Bathala Na at the final Fête PH 2022 stage in Kalye Artisano in Lio Estate, Palawan, on June 28.

In addition, Fête de la Musique has once again partnered with over 30 independently produced pocket stages in Metro Manila to simultaneously feature various genres and musical moods on June 24.

The participating venues include Alchemy Bistro Bar, Archipelago Makati, Boogie, Braiser’s The Village Cafe in Parañaque, Commune, Craven’s Bar and Restaurant, Dear Adam Sweet Lucy, Elements Boutique Hotel, Futur:st, H&J Restaurant, Kampai, La Collina, Leisure HQ, OTO, Pardon My French, Pura Vida Manila, Saguaro Bar & Cafe, Skinny Mike’s Sports Bar in BGC, The Apartment, The Green Door, The Astbury, The Social on Ebro, The Spirits Library, Topic, Thumbayan Grill, White Banana, WYP, and Z Hostel.

Some performers include Basically Saturday Night, Johnny Alegre, Ean Mayor of UDD, Coffeebreak Island with Bing Austria and Tuesday Vargas, Tropical Depression, Apartel, Mulan, and Samantha Nicole.

Fête de la Musique also partnered with Funkybeat Entertainment, a music production company led by Francis De Veyra, to produce and compose an anthem for this year’s celebrations.

Fete de la Musique in the Philippines 2022 is presented by Alliance Française de Manille, in partnership with the Embassy of France and B Side Productions, and co-organized by the Department of Tourism.

For more information, visit www.facebook.com/FetePH/. — Michelle Anne P. Soliman

Maynilad clarifies water issue, starts solar farm

June 14, 2022 | 12:07 am

MAYNILAD Water Services, Inc. is “in discussion” with the water regulatory office on a recent supply interruption issue that resulted from the resurgence of the algal bloom in Laguna Lake.

The company’s statement was disclosed by its parent firm Metro Pacific Investments Corp. (MPIC) to the stock exchange on Monday after the reported water interruption.

It said the algal bloom is hampering water production in its Putatan water treatment plants.

“Maynilad acknowledged the concerns raised by MWSS (Metropolitan Waterworks and Sewerage System) and is doing everything necessary to restore normal service given current constraints on the quality of the raw water source,” MPIC said.

“Ongoing treatment interventions by Maynilad have resulted in a quicker resolution of the algal bloom episode compared to previous years, as gradual increase in Maynilad’s water production is already being felt despite the persistent high algal count in the Laguna Lake,” it said.

It added that in the meantime, Maynilad “continues to mitigate the effects of the incident to its affected customers by delivering potable water through mobile tankers and announcing a daily supply availability schedule so that affected customers can store water for their needs.”

Maynilad believes that the situation is temporary and expects the onset of the rainy season will dissipate the effect of the algal bloom on the lake’s raw water supply, MPIC said.

The firm said MWSS imposed a fine of around P64 million on Maynilad for the water service interruption that occurred between December 2021 to February 2022.

“Maynilad received the notice of imposition of the fine on March 14, 2022 and the fine was settled in the form of rebates to affected customers,” it said.

MAYNILAD’S SECOND SOLAR FARM
Separately, Maynilad announced on Monday that it had energized its second solar power farm inside La Mesa compound in Quezon City to provide more renewable energy for its water facilities.

“We are serious about managing the environmental impact of our operations, which will continue to expand as we build more facilities over the next few years. The use of renewables is one of our strategies for minimizing greenhouse gas emissions, along with carbon sequestration through the reforestation of watersheds,” said Maynilad President and Chief Executive Ramoncito S. Fernandez.

The new one-megawatt photovoltaic (PV) solar farm covers a land area of 12,157.30 square meters. The power plant was built to augment the power requirements of La Mesa treatment plant 1 and several pumping stations within the La Mesa compound.

The plant is expected to reduce the electricity consumption of Maynilad’s La Mesa facilities by around 90,000 kilowatt-hours, as well as minimize carbon emissions by 21 tons per month. It is also projected to generate annual cost savings of around P7 million to P10 million from purchased electricity.

Maynilad’s first solar farm is a one-megawatt PV installation that began production in 2021.

“This marked Maynilad’s initial foray into renewables, which it is pursuing in line with its environmental sustainability and operational efficiency initiatives,” the water concessionaire said.

Maynilad is the water supplier for Metro Manila’s west zone, which covers Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon, Cavite, and certain portions of Manila, Quezon City, and Makati.

MPIC, which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Luisa Maria Jacinta C. Jocson

Ramos lifts two golds, one silver

June 14, 2022 | 12:06 am

In World Youth Championships in Guanajuato, Mexico

SEVENTEEN-year-old Rose Jean Ramos of Zamboanga — INTERNATIONAL WEIGHTLIFTING FEDERATION

THERE is another potential heiress to Tokyo Olympics gold medalist Hidilyn F. Diaz’s throne as queen of Philippine weightlifting.

Her name is Rose Jean Ramos and, just like Ms. Diaz herself, a product of that world-class lifter-producing city in Zamboanga.

The 17-year-old pocket-sized wonder showed her true worth to be one of the possible successors to Ms. Diaz’s throne as she captured a pair of gold and silver medals in the World Youth Championships in Guanajuato, Mexico on Monday.

Ms. Ramos struck gold in the clean and jerk with a lift of 85 kilograms and in total weight with a 155kg while settling for the silver in the snatch with a 70kg in the women’s 45kg class.

She blew away the field that included Venezuelan Kerlys Montilla and Indian Soumya Sunil Dalvi, who wound up second and third in total with 153kg (71kg in snatch and 82kg in clean and jerk) and 148kg (65kg, 83kg), respectively.

It was a reprise of her performance from last year’s edition in Jeddah, Saudi Arabia where she bagged mints in snatch and total and silver in clean and jerk.

She also snared a gold and silver in the world championship, hosted by Peru and done online due to the pandemic, the previous year that underscored her ability to follow in the footsteps of Ms. Diaz.

“We’re on a roll,” said an ecstatic Samahang Weightlifting ng Pilipinas president Monico Puentevella, who put the medals on Ms. Ramos’ neck himself during the awarding ceremony.

Mr. Puentevella sees great potential in Ms. Ramos to make it to the 2024 Paris Olympics alongside several other bets headed by Ms. Diaz and Vanessa Sarno, an equally promising 18-year-old lass from Tagbilaran, Bohol who ruled her heavier division in the Hanoi Southeast Asian Games last month and the Asian Championships in Tashkent, Uzbekistan a year back.

“Here we come, Paris 2024. We’re beating the best in the world. We can do it,” said Mr. Puentevella, who thanked coach Allen Diaz, the Philippine Sports Commission and the Manny V. Pangilinan Sports Foundation for the support.

With the likes of talented youngsters like Mses. Sarno and Ramos, the future is secured when the time comes Ms. Diaz would call it a day. — Joey Villar