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Christmas at risk as supply chain disaster continues to worsen

SHOPPERS clutch their paper bags at the King of Prussia Mall in King of Prussia, Pennsylvania, United States. Nov. 22, 2019. — REUTERS

IT’S THE BEGINNING of October, just the start of what the retail world simply calls “peak.” But the industry is already in various forms of panic that usually don’t take hold until the weeks before Christmas.

Early in the year, the hope was that the bottlenecks that gummed up the global supply chain in 2020 would be mostly cleared by now. They’ve actually only gotten worse — much worse — and evidence is mounting that the holiday season is at risk.

Across Europe, retailers such as apparel chain H&M can’t meet demand because of delivery delays. In the US, Nike cut its sales forecast after COVID-19 triggered factory closures in Vietnam that wiped out months of production. And Bed Bath & Beyond’s stock plunged amid shipping woes, with Chief Executive Officer Mark Tritton warning that disruptions would last well into next year. “There is pressure across the board, and you will hear about that from others.”

COVID outbreaks have idled port terminals. There still aren’t enough cargo containers, causing prices to spike 10-fold from a year ago. Labor shortages have stalled trucking and pushed US job openings to all-time highs. And that was before UPS, Walmart and others embark on hiring hundreds of thousands of seasonal workers to take on the peak of peak.

“I’ve been doing this for 43 years and never seen it this bad,” said Isaac Larian, founder and CEO of MGA Entertainment, one of the world’s largest toymakers. “Everything that can go wrong is going wrong at the same time.”

Now comes the rush of goods into the US for Santa’s sleigh, which will only exacerbate all of this. It’s going to be a daunting holiday season — one that investors appear to be shrugging off despite analysts raising concerns that margins will likely take a hit. The S&P Retail Select Industry Index, which encompasses 108 US companies including Amazon, Macy’s and Best Buy, is up about 40% this year and almost doubled since the start of 2020. Its combined market cap is $3.3 trillion, just a sliver below a record high from earlier this year.

That jubilance clashes with what’s happening behind the scenes. Retailers have resorted to buying goods made a couple years ago to make sure they at least secure some inventory, according to Steve Azarbad, co-founder and chief investment officer of the hedge fund Maglan Capital, which invests in retailers and distressed companies. In normal times, these items would be liquidated at closeout stores or in foreign markets, but not now.

“Retailers are having a really hard time filling their shelves,” Mr. Azarbad said. “I talk to a lot of suppliers, and they’re telling me ‘I just can’t fill all the orders I’m getting.’”

RETAIL’S RUN
On the supplier side, Jay Foreman’s been making toys with manufacturing partners in China for more than three decades, and he’s never seen anything like this. His mid-sized toy company, Basic Fun, is on pace for its best year ever — possibly reaching $170 million in sales. There is no shortage of demand, with parents loading up on gifts as the pandemic drags on. But a dearth of cargo containers has left thousands of the company’s Lite Brites and TinkerToys waiting to be shipped. At just one factory in Shenzhen, there’s roughly $8 million worth of finished goods that could fill 140 containers.

“I got Tonka trucks in the south and Care Bears in the north,” Mr. Foreman, the company’s CEO, said of logistical troubles in China. “We’ll blow last year’s numbers away, but the problem is we don’t know if we’ll get the last four months of the year shipped. The supply chain is a disaster, and it’s only getting worse.”

MGA’s Mr. Larian is willing to pay more than $20,000 per shipping container — up from about $2,000 a year ago — and counts his blessings that he runs a private company that doesn’t have to answer to shareholders. He’s having trouble simply getting goods off cargo ships in the port of Los Angeles. MGA recently had more than 600 containers, filled with toys like its top-selling L.O.L. Surprise dolls, waiting to be unloaded for more than six weeks.

“There will be a shortage of toys this fall,” Mr. Larian said. “It’s going to be a tough year for retailers.”

ENOUGH STUFF?
When the pandemic knocked the global economy down in early 2020, factories slowed output or closed. Turns out, that was the easy part. Re-starting has been much more difficult. The supply chain has been choked by so many events, such as the Suez Canal blockage, and market dynamics like labor shortages and the spike in transportation costs that it feels like there’s been one “black swan” event after another, according to Lee Klaskow, a logistics analyst for Bloomberg Intelligence.

“The supply chain has never had the opportunity to get back to normal,” Klaskow said.

One of the better scenarios for the fourth quarter is that big retailers drastically increase spending on logistics — including resorting to using costlier air freight or chartering entire cargo ships — but still maintain their sales targets. That will likely mean they’ll see a hit to profit margins, but it could also lead to taking market share from smaller competitors who can’t match their deep pockets.

“We feel better than most that we’ll get our product here for holiday,” said Michael Mathias, chief financial officer for apparel chain American Eagle Outfitters. The retailer has spent more on air freight to secure goods for Christmas. “There will be some players out here who might not even get their product.”

The bigger, more systemic risk — one that could hurt every retailer — is that American spend less than expected because there isn’t enough inventory. The available goods may also not be all that enticing. The boom in shipping prices has forced manufacturers to make hard decisions about what to transport. Hicks, the Academy Sports CEO, predicted that shoppers “will have to settle more because they just won’t have as good of a selection.”

Shipping big items and goods with lower value don’t make as much economic sense right now. iPhones are small and pricey, making them an ideal good to ship or air freight amid spiking transport costs. But the same case can’t be made for low-end furniture or big stuffed animals.

At Whom Home in Los Angeles, CEO Jon Bass said he had to remove about 70% of the company’s products — totaling thousands of items including wall decor and furniture — from the websites of retail partners such as Walmart and Wayfair because the company can’t source them. Or in some cases, surging costs for materials and transportation made an item pricier than a retailer was willing to pay.

“Consumers lose because their options are limited,” said Mr. Bass, who has been manufacturing goods for three decades. “It’s not a normal time in the business world. There is no stability.”

Rising costs in the supply chain, such as cotton prices hitting a 9-year high, and labor are also likely to boost what consumers pay, which could dampen spending. Or it might cause a bigger shift from hard goods to experiences and services — a trend already in place this year as Americans get back to traveling and eating out. The industry also expects much fewer promotions than usual because inventories are tight, which will turn off bargain hunters.

Add that consumer expectations are sky high, thanks to the ease and speed of e-commerce, and the retail industry is primed to severely disappoint the masses. If last holiday season was dubbed “shipageddon,” what will this year be called? It’s easy to see a boom in gift cards out of frustration as Americans tire of out-of-stocks and logistic mishaps.

“There is a certain amount of underappreciating for the risk” to the results of retailers, said Jennifer Bartashus, an analyst for Bloomberg Intelligence whose coverage includes mass merchants. “Supply chain affects everybody. Meeting customer expectations in an environment where everything is up in the air is nearly impossible.

The retail industry has seen this coming. Large firms with the financial wherewithal have been storing goods in their own warehouses or renting space to make sure they can start filling shelves over the next few weeks. It’s another example of how “scale will be the pivotal differentiator” this holiday season, Ms. Bartashus said.

There’s also a push to get Americans to shop sooner for the holidays. One effort is trying to create a new shopping event in early October that will include retailers such as Guess? hosting livestream events on their websites. However, this seems like a gargantuan task considering e-commerce has trained the masses that purchases arrive in a few days like clockwork. Retailers have also traditionally saved some big promotions for the week before Christmas to drive a late spending push.

“Consumers might see news about port backups, but that won’t hit home until they try to buy the toy of the year and can’t get it,” Ms. Bartashus said. “That’s when they’ll hit crisis mode.”

Many retailers are already there. — Bloomberg

Globe integrates supply chain onto sustainability practices

As a requisite for accreditation, Globe’s partner vendors and suppliers are encouraged to commit to support the economic, social, and governance aspects of sustainability that the company espouses to help contribute to sustainable development.

By acknowledging Globe’s Supplier Code of Ethics, partners are encouraged to comply with at least the minimum sustainability standards of the policy. Key areas include protection of human rights, environmentally conscious operations, health and safety, business continuity, transparency, integrity, and corporate citizenship.

Vendors and suppliers are also encouraged to develop and implement their own sustainability programs and enjoin their own partners to do the same, in order for the whole supply chain to embrace sustainable practices. Alignment in the early stages of engagement plays a critical role in embedding the company’s core values in the supply chain.

“Globe believes that the best outcomes for the economy may be generated only through collaboration, mutual support, and a vision for a shared future so we conscientiously partner only with suppliers and vendors who share our values rooted in innovation and sustainability to drive inclusive growth,” said Rizza Maniego-Eala, Globe’s Chief Finance Officer.

Globe also has a vendor monitoring system that enables it to evaluate supplier performance and determine action areas for improvement.

As of end-2020, over 85% of Globe’s suppliers are Philippine-based companies or vendors that have their main operations in the country. The company actively engages local vendors to help in nation-building and stimulate economic growth in a sustainable manner.

Even during the pandemic, Globe proactively reached out to its ecosystem of partners to enable them to effectively manage the impacts of the global health crisis, ensure business continuity, and support their well-being. Benefits and safety initiatives provided to its own employees were also extended to all suppliers working on its operations which included access to the DOH-approved and certified COVID-19 testing facility called Globe Labs giving the group’s more than 13,000-strong workforce access to quick, affordable and accurate procedures for diagnosing the disease.

Globe is a signatory to the UN Global Compact Principles and commits to support the 10 principles on Human Rights, Labor, Environment, and Anti-Corruption. Globe also commits to support 10 United Nations Sustainable Development Goals, such as UN SDG No. 12—Sustainable Consumption and Production—which is about achieving economic growth and sustainable development by adopting and promoting sustainable procurement practices that are in accordance with national policies and priorities.

To know more about Globe, visit www.globe.com.ph.

 


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Business group relaunches education coalition for 2022 elections  

BW FILE PHOTO

With the Philippines still undergoing a “learning crisis,” the country will require leaders that will make education a top priority, according to Philippine Business for Education (PBEd). The advocacy group convened on Monday the Education Nation coalition as a call for 2022 election candidates to champion education reform.  

“Just like back in 2009, when this project was first initiated, we are challenging candidates to adopt our 10-point reform agenda and be the leaders we need,” said Ramon R. del Rosario, Jr., PBEd chairman, at the project’s virtual launch.   

The coalition’s first three points in its 10-point agenda include electing an education-minded president and government leaders, providing adequate resources to the education sector, and strengthening community capacity for student learning.  

In September, the Department of Education (DepEd) said that funds remain insufficient despite a higher proposed budget due to computerization efforts meant to aid teachers in distance learning. Only 25.58 million students enrolled for school year 2021–2022, a 2.5% dip from 26.22 million students the previous year, according to their data.  

PBEd also previously raised the alarm on the Philippine education crisis in July.  

“To be fair, there are programs that DepEd, CHED [Commission on Higher Education], and TESDA [Technical Education and Skills Development Authority] are currently implementing to address some of the 10-point agenda, and they’re responding,” said Lovelaine B. Basillote, PBEd executive director. “We just want to make sure that the next administration builds on existing efforts and continues to prioritize education.”  

Education Nation plans to host a public forum or debate for candidates to discuss education reforms in their platforms. — Brontë H. Lacsamana 

Whistleblower says Facebook put profit before reining in hate speech  

REUTERS

A Facebook Inc. whistleblower on Sunday accused the social media giant of repeatedly prioritizing profit over clamping down on hate speech and misinformation, and said her lawyers have filed at least eight complaints with the US Securities and Exchange Commission.  

Frances Haugen, who worked as a product manager on the civic misinformation team at Facebook, appeared on Sunday on the CBS television program 60 Minutes, revealing her identity as the whistleblower who provided the documents that underpinned a Wall Street Journal investigation and a Senate hearing on Instagram’s harm to teen girls.  

Facebook has been under fire after the Journal published a series of stories based on Facebook internal presentations and emails that showed the social media company contributed to increased polarization online when it made changes to its content algorithm, failed to take steps to reduce vaccine hesitancy and was aware that Instagram harmed the mental health of teenage girls.  

Ms. Haugen will testify before a Senate subcommittee on Tuesday in a hearing titled “Protecting Kids Online,” about the company’s research into Instagram’s effect on young users.  

“There were conflicts of interest between what was good for the public and what was good for Facebook,” she said during the interview. “And Facebook over and over again chose to optimize for its own interests like making more money.”  

Ms. Haugen, who previously worked at Google and Pinterest, said Facebook has lied to the public about the progress it made to clamp down on hate speech and misinformation on its platform.  

She added that Facebook was used to help organize the Capitol riot on January 6, after the company turned off safety systems following the US presidential elections.  

While she believed no one at Facebook was “malevolent,” she said the company had misaligned incentives.  

Facebook published a statement disputing the points that Haugen made after the televised interview.  

“We continue to make significant improvements to tackle the spread of misinformation and harmful content,” said Facebook spokesperson Lena Pietsch. “To suggest we encourage bad content and do nothing is just not true.”  

Ahead of the 60 Minutes interview, Facebook Vice President of global affairs Nick Clegg said on CNN it was “ludicrous” to assert that Jan. 6 occurred because of social media.  

INTERNATIONAL TALKS 
On Sunday, Ms. Haugen’s attorney John Tye, founder of legal nonprofit Whistleblower Aid, confirmed a New York Times report that some of the internal documents have been shared with attorneys general from several states including California, Vermont, and Tennessee.  

Mr. Tye said the complaints were filed to the SEC on the basis that as a publicly-traded company, Facebook is required to not lie to its investors, or even withhold material information.  

The complaints compare Facebook’s internal research with its public statements on the issues it researched, according to the 60 Minutes interview.  

Mr. Tye said Ms. Haugen has also spoken with lawmakers in Europe and is scheduled to appear before the British parliament later this month, in hopes of spurring regulatory action.  

He and Haugen are also interested in speaking with lawmakers from countries in Asia, since many of the issues that motivated Haugen stem from the region, including the ethnic violence in Myanmar, he added.  

Whistleblower Aid, which is representing Haugen pro-bono, has also launched a GoFundMe to raise $50,000 for her legal costs. — Sheila Dang/Reuters  

Key findings of leaked Pandora Papers on offshore wealth

PIXABAY

A group of news organizations has released the following main findings after reviewing what it describes as a massive leak of confidential financial records revealing assets held offshore by politicians and public officials worldwide.  

The news reports have been published by the International Consortium of Investigative Journalists (ICIJ) and its media partners in the Pandora investigation, including The Washington Post, the BBC, The Guardian, Radio France and the Indian Express 

Reuters could not independently verify the allegations or documents detailed by the consortium and its partners.  

JORDAN’S KING ABDULLAH 
Jordan’s King Abdullah amassed about $100 million worth of property in the United States and the UK through secret companies. They were purchased between 2003 and 2017 via firms registered in tax havens and include properties in Malibu, southern California, and Washington and London.  

DLA Piper, a London law office representing Abdullah, told the ICIJ that he had “not at any point misused public monies or made any use whatsoever of the proceeds of aid or assistance intended for public use.”  

CZECH PRIME MINISTER ANDREJ BABIS 
The Pandora news reports said Mr. Babis moved $22 million through offshore companies to buy an estate on the French Riviera in 2009 while keeping his ownership secret. The report did not say the transactions broke the law.  

Mr. Babis, speaking on Sunday in a TV debate ahead of Oct. 8-9 elections, denied wrongdoing and said “the money left a Czech bank, was taxed, it was my money, and returned to a Czech bank”.  

Mr. Babis, founder of the Agrofert farming, food, chemicals and media empire, entered politics in 2011 on an anti-corruption agenda.  

SVETLANA KRIVONOGIKH 
The Washington Post said Russian woman Svetlana Krivonogikh became the owner of a Monaco apartment via an offshore company incorporated on the Caribbean island of Tortola in April 2003 just weeks after she gave birth to a girl. At the time, she was in a secret, years-long relationship with Russian President Vladimir Putin, the Post said, citing Russian investigative outlet Proekt.  

The Post said Ms. Krivonogikh, her daughter, who is now 18, and the Kremlin did not respond to requests for comment.  

PAKISTAN 
The ICIJ said the leaked documents showed members of Prime Minister Imran Khan’s inner circle, including cabinet ministers, have secretly owned companies and trusts holding millions of dollars of hidden wealth. The documents also showed the personal wealth of Pakistani military leaders, it added.  

The consortium said the documents contained no suggestion that Mr. Khan himself owns offshore companies.  

It said Finance Minister Shaukat Fayaz Ahmed Tarin and members of his family own four offshore firms. According to Tariq Fawad Malik, a financial consultant who handled the paperwork on the companies, they were set up as part of the Tarin family’s intended investment in a bank with a Saudi business, the ICIJ said. The deal did not proceed.  

The ICIJ quoted Mr. Tarin as saying in a statement: “The off-shore companies mentioned were incorporated as part of the fund-raising process for my bank.”  

SOUTH DAKOTA 
The Guardian said the files provided evidence that South Dakota now rivalled opaque jurisdictions in Europe and the Caribbean for financial secrecy.  

The documents reveal almost $360 billion in customer assets are sitting in trusts in South Dakota, some of it tied to offshore-based people and companies accused of human rights abuses and other wrongdoing, it said. State officials declined to comment to the paper.  

AZERBAIJAN 
The investigation found Azerbaijani President Ilham Aliyev and his family have secretly been involved in British property deals worth more than 400 million pounds ($542 million), according to the BBC.  

The files show how the family bought 17 properties, including a 33 million pound office block in London for the president’s 11-year-old son.  

The research also reveals how another office block owned by the family nearby was sold to the Crown Estate for 66 million pounds in 2018. The Crown Estate said it carried out the checks required in law at the time of purchase but is now looking into the matter. The Aliyevs declined to comment to the BBC.  

KENYA 
Kenya’s President Uhuru Kenyatta and six members of his family have been linked to 13 offshore companies, according to the documents.  

The Kenyattas’ offshore investments included a company with stocks and bonds worth $30 million, the BBC reported. The Kenyattas had not yet responded to requests for comment, it added. — Reuters 

Work-from-home future challenges call centers in the Philippines

BW FILE PHOTO

The Philippines should adopt policies for call centers that will fit the post-pandemic workplace, according to the head of the industry group, as it seeks to extend the sector’s two decades of growth.

The Contact Center Association of the Philippines sees a shift toward working-from-home, one of several COVID-era workforce adaptations that could become entrenched. However, some tax breaks crucial to the industry are only valid if the bulk of their employees work in designated economic zones. 

“No business is thinking we will just go back, after this pandemic is over, to the way we were,” Chairman Benedict Hernandez said in an interview. He urged the government to develop a long-term policy that recognizes the new reality of hybrid home-office work. 

The association expects the outsourcing industry’s revenues to grow 9% this year, outpacing 6%-7% for the sector globally, as more companies shift toward digitalization.

“It’s an encouraging yet vulnerable recovery,” Hernandez said. The outsourcing industry, which includes call centers, needs “support and protection so that we can continue creating more jobs and helping the economy recover.” 

With most Filipinos proficient in English, call centers have played an increasingly important role in the country’s economy since the 1990s, creating millions of jobs and driving consumption. As exporters of information-technology services are often located inside government-designated economic zones, many of the companies enjoy special tax breaks.

Call centers employ about 800,000 people in the Southeast Asian nation, or about three-fourths of the 1.3 million workers in the outsourcing sector, and add as many as 80,000 new jobs per year. As the global recovery continues more companies will look to cut costs by moving jobs offshore, creating more opportunities for Philippine outsourcing companies, Hernandez said. 

PLAYING CATCH-UP
Still, the industry faces a number of risks. 

Fresh COVID outbreaks are prompting clients who may have concentrated operations in a single country to reconsider that strategy. To bolster its competitiveness, the Philippines will need to play catch-up in vaccinating employees, upgrading infrastructure and implementing supportive government policies, Hernandez said.

Among the challenges are infrastructure investments by telecommunication companies to bolster at-home connectivity. “We’re very happy with how much speed and capital they’re laying out,” Hernandez said. “It’s getting better, but we’re not yet there.”

In addition, a 1994 law on economic zones must be updated for the outsourcing industry, Hernandez said. The law gives tax breaks to companies whose output is produced in the zones, which suggests employees must be working onsite. 

Amid the pandemic, about 60% of total call center employees are currently working from home, with some companies now fully home-based. The government recently allowed companies in the economic zones to let as many as 90% of employees work from home through next March. 

That extension “buys us time,” Hernandez said, but isn’t a durable solution.

FISCAL CAUTION
Officials from the National Economic and Development Authority and the Department of Trade and Industry didn’t respond to requests for comment.

The Duterte administration generally has been cautious about using fiscal measures to counter the effects of the pandemic, though an order imposing 12% value-added tax on exporters’ transactions, which could affect call centers, has been deferred for now.

Earlier this year the government changed the fiscal-incentives system, phasing out certain tax breaks in the economic zones and tweaking others. Some outsourcing firms worry that reducing such incentives will make the Philippines more expensive and drive away investors.

“It’s been a resilient industry,” Hernandez said. “This year, we’re seeing a very promising recovery but that continues to be vulnerable. We still need support.” — Bloomberg

Two Koreas reopen hotlines as North urges South to mend ties  

REUTERS

SEOUL — The two Koreas on Monday restored their hotlines that the North severed months ago, with Pyongyang urging Seoul to step up efforts to improve relations after criticizing what it called double standards over weapons development.  

North Korean leader Kim Jong Un expressed his willingness last week to reactivate the hotlines, which North Korea cut off in early August in protest against joint South Korea-US military exercises, just days after reopening them for the first time in a year.  

Pyongyang’s official KCNA news agency had said the telephone links would be reconnected on Monday at 9:00 a.m. (0000 GMT).  

The South confirmed that twice-daily regular communication was restarted on time via military hotlines and others run by the Unification Ministry, except for the navy channel set up on an international network for merchant ships.  

The hotlines are a rare tool to bridge the rivals, but it was unclear whether their reconnection would facilitate any meaningful return to talks aimed at dismantling the North’s nuclear and missile programs in return for US sanctions relief.  

KCNA called for Seoul to fulfil its “tasks” to mend strained cross-border ties, repeating Kim’s speech last week that he had decided to recover the lines to help realize people’s hopes for a thaw and peace.  

In that speech, Kim urged South Korea to abandon its “double standards” and “delusion” over the North’s self-defensive military activities while developing its own weapons.  

“The South Korean authorities should make positive efforts to put the north-south ties on a right track and settle the important tasks which must be prioritized to open up the bright prospect in the future,” KCNA said.  

HOTLINES REDUCE TENSIONS 
Seoul’s defense ministry said the hotlines have contributed to preventing unexpected clashes and their reopening would hopefully lead to substantive easing of military tension.  

The Unification Ministry, responsible for inter-Korean affairs, expressed hopes that it would be able to resume dialogue soon on ways to recover relations and foster peace.  

In Washington, a US State Department spokesperson said it strongly supports inter-Korean cooperation, calling the reconnected lines “an important component in creating a more stable environment on the Korean Peninsula.”  

Tension had flared since the hotlines were severed, with North Korea warning of a security crisis and firing a series of new missiles, including a hypersonic missile, an anti-aircraft missile, and a “strategic” cruise missile with potential nuclear capabilities.  

The launches underlined how the isolated country has been constantly developing increasingly sophisticated weapons, raising the stakes for stalled denuclearization negotiations.  

While accusing Washington of “hostile policy,” Pyongyang has said it is willing to mend inter-Korean relations and consider another summit if Seoul drops double standards.  

Analysts say the North’s carrot-and-stick approach is aimed at securing international recognition as a nuclear weapons state and driving a wedge between the United States and South Korea, counting on South Korean President Moon Jae-in’s eagerness to forge a diplomatic legacy before his term ends in May. — Hyonhee Shin/Reuters 

Amid COVID-19 booster data dilemma, EU nations’ plans diverge

FREEPIK

LONDON — A patchwork of campaigns for an extra coronavirus disease 2019 (COVID-19) shot are being rolled out across the European Union even before the region’s drug watchdog rules on whether they are safe and effective.  

Italy, France, Germany, and Ireland have already started to administer booster shots and the Netherlands plans to do so soon but only to people who are immunosuppressed.  

But several EU countries are waiting for the European Medicines Agency (EMA) to give its opinion this week.  

The fragmented picture mirrors the different approaches seen in the roll-out of shots across one of the world’s wealthiest regions at the turn of the year.  

They also highlight the lack of consensus among scientists about how broadly they are needed, while governments seek to revive their ailing economies, fight the more infectious Delta variant, and avoid further lockdowns in the winter.  

Underscoring what is at stake, the EU’s infectious diseases center said on Thursday the region’s coverage of vaccines was still too low and there was a risk of a significant surge in cases, hospitalizations and deaths over the next six weeks.  

Only 61% of the total population have been fully vaccinated, and only three countries — Malta, Portugal, Iceland — have vaccinated more than 75% of their total population, it said.  

That compares with less than a quarter of the population in Bulgaria, one of the big laggards in EU vaccinations.  

Still, the bloc’s push towards boosters will stir the debate over rich nations’ use of vaccines while poorer countries struggle to access supplies and inoculate their citizens.  

The World Health Organization has called on countries to delay boosters until more people around the world have been inoculated.  

EU NEXT IN LINE 
If the EMA gives its backing for the Pfizer booster, the 27-member bloc will join the United States, Britain and Israel, which have already received the green light to administer them.  

Those have relied on data from Israel where boosters are being offered to the whole population showing that more than 1.1 million people aged 60 and older received a booster dose of Pfizer, resulting in a decline in overall infections as well as severe illness from COVID-19 in that group.  

Pfizer and Moderna have also each released analyses of clinical trial data showing that the effectiveness of their shots, initially estimated at over 90% against symptomatic COVID-19 infection, wanes over time.  

Many vaccine experts say the data so far only suggest a need for boosters in older adults and people with compromised immune systems.  

A decision by the EMA is expected on Monday, although the regulator is unlikely to provide detailed guidance on who should receive a booster shot.  

The EMA and the European Centre of Disease Prevention and Control (ECDC) have both said there is not enough data on the issue.  

On Thursday, the ECDC said additional doses may be given to people with severely weakened immune systems as they may not have adequate protection from standard vaccination.  

As a precautionary measure, older frail people, in particular those living in care homes, could also get a booster, while healthcare workers and other staff who are exposed to the virus could also be considered, it said.  

But it said it was still assessing data on waning immunity after vaccination and reduced vaccine effectiveness against the Delta variant.  

DIVERGING MOVES 
In the meantime, EU countries are implementing their own policies.  

Italy has started to administer shots across the immunocompromised, the elderly and healthcare workers who are vulnerable or at high risk of infection, targeting a total of about 9 million people.  

In contrast, the Netherlands is limiting its boosters to the immunosuppressed — up to 400,000 people — and has stressed the need for primary vaccinations.  

“For the time being, the current COVID-19 vaccines offer an undiminished high level of protection against it. The only clues so far for diminishing protections are coming from Israel, but these indications in themselves still offer too little basis for a booster campaign in the Netherlands,” the health council said.  

In Denmark, the government is pursuing a similar strategy but plans to hand out extra doses to medical staff and anyone over 65 if the EMA gives the go-ahead.  

Switzerland will not use boosters for now because the authorities say they do not see protection slipping over time, but they are still monitoring the data.  

The decision-making has exposed domestic divisions too. Germany’s federal and regional health ministers were worried about slowing vaccination rates and voted for third doses to a large portion of the population.  

But the country’s vaccine expert panel STIKO has only endorsed an extra shot for the immunocompromised, such as cancer patients or people with organ transplants.  

It said it was considering widening to other groups and it would make a recommendation over the coming weeks. — Josephine Mason, Anthony Deutsch, and Nikolaj Skydsgaard/Reuters  

Meralco energizes new COVID-19 vaccination center in Pateros

In its continuing support to the Government and Private Sector’s fight against COVID-19, Meralco energizes a new vaccination center at the AMC Gym, Barangay San Roque, Pateros.

The project involves the installation of six (6) 15-meter concrete poles, two (2) 50-kVA distribution transformers, ten (10) spans of insulated primary wires, service drop wires and metering facility.

This new vaccination center is one of the many vital COVID-19 facilities in the Meralco franchise area that are given the highest priority in terms of providing safe, adequate, and reliable supply of electricity, in line with the company’s thrust to assist the government during the pandemic. To date, more than 140 vital COVID-19 facilities have already been energized by Meralco which include government offices, hospitals, testing laboratories, quarantine and vaccination centers, and vaccine storage facilities.

 


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Pandora Papers: Document dump allegedly links world leaders to secret wealth

Russian President Vladimir Putin

WASHINGTON — A massive leak of financial documents was published by several major news organizations on Sunday that allegedly tie world leaders to secret stores of wealth, including King Abdullah of Jordan, Czech Prime Minister Andrej Babis and associates of Russian President Vladimir Putin.  

The dump of more than 11.9 million records, amounting to about 2.94 terabytes of data, came five years after the leak known as the “Panama Papers” exposed how money was hidden by the wealthy in ways that law enforcement agencies could not detect.   

The International Consortium of Investigative Journalists, a Washington, D.C.-based network of reporters and media organizations, said the files are linked to about 35 current and former national leaders, and more than 330 politicians and public officials in 91 countries and territories. It did not say how the files were obtained, and Reuters could not independently verify the allegations or documents detailed by the consortium.   

Jordan’s King Abdullah, a close ally of the United States, was alleged to have used offshore accounts to spend more than $100 million on luxury homes in the United Kingdom and the United States.   

DLA Piper, a London law office representing Abdullah, told the consortium of media outlets that he had “not at any point misused public monies or made any use whatsoever of the proceeds of aid or assistance intended for public use.”   

The Washington Post, which is part of the consortium, also reported on the case of Svetlana Krivonogikh, a Russian woman who it said became the owner of a Monaco apartment through an offshore company incorporated on the Caribbean island of Tortola in April 2003 just weeks after she gave birth to a girl. At the time, she was in a secret, years-long relationship with Putin, the newspaper said, citing Russian investigative outlet Proekt.   

The Post said Ms. Krivonogikh, her daughter, who is now 18, and the Kremlin did not respond to requests for comment.  Days ahead of the Czech Republic’s Oct. 8–9 parliamentary election, the documents allegedly tied the country’s prime minister, Babis, to a secret $22 million estate in a hilltop village near Cannes, France.  Speaking during a television debate on Sunday, Mr. Babis denied any wrongdoing.   

“The money left a Czech bank, was taxed, it was my money, and returned to a Czech bank,” Mr. Babis said. — Reuters

US condemns ‘provocative’ Chinese activities near Taiwan

REUTERS

TAIPEI — The United States urged China on Sunday to stop its “provocative” military activities near Taiwan, after the island scrambled jets to warn away close to 100 Chinese military aircraft entering its air defense zone over a three-day period.  

Taiwan, a democratically governed island that is claimed by China, has complained for more than a year of repeated missions near it by China’s air force, often in the southwestern part of its air defense zone close to the Taiwan-controlled Pratas Islands.  

On Friday, Saturday and again on Sunday, Taiwan’s defense ministry reported that China’s air force had sent aircraft into the zone, with 39 on Saturday alone, the highest reported number to date.  

“The United States is very concerned by the People’s Republic of China’s provocative military activity near Taiwan, which is destabilizing, risks miscalculations, and undermines regional peace and stability,” State Department spokesperson Ned Price said in a statement.  

“We urge Beijing to cease its military, diplomatic, and economic pressure and coercion against Taiwan.”  

The United States has an abiding interest in peace and stability across the Taiwan Strait, and will continue to assist Taiwan in maintaining a “sufficient self-defense capability,” Mr. Price added.  

“The US commitment to Taiwan is rock solid and contributes to the maintenance of peace and stability across the Taiwan Strait and within the region.”  

Taiwan’s Foreign Ministry thanked the United States for its concern, and said China was increasing tension in the Indo-Pacific region.  

“In the face of China’s challenges, our country’s government has always committed itself to improving our self-defense capabilities and resolutely safeguarding Taiwan’s democracy, freedom, peace and prosperity,” it said.  

China has yet to comment on its activities, and it is not clear what may have caused Beijing to decide to mount the missions, though Friday was the country’s National Day, a patriotic holiday that marks the founding of the People’s Republic.  

It has previously said such flights were to protect the country’s sovereignty and aimed against “collusion” between Taiwan and the United States, the island’s most important international backer.  

Taiwan’s defense ministry said it sent combat aircraft to warn away the Chinese aircraft, while missile systems were deployed to monitor them.  

It said the aircraft were a mixture of J-16 and Su-30 fighters as well as anti-submarine and early warning aircraft. Friday’s flights included nuclear-capable H-6 bombers.  

Taiwan Premier Su Tseng-chang condemned China for its actions on Saturday, saying the country was engaging in military aggression and damaging regional peace.  

Taiwan marks its national day next Sunday, with a major speech by President Tsai Ing-wen and military parade in central Taipei, which will include a fly-by of fighter jets.  

China has stepped up military and political pressure to try to force Taiwan to accept Chinese sovereignty.  

Taiwan says it is an independent country and will defend its freedom and democracy. — Ben Blanchard/Reuters  

PCCI names Cathay Land’s Jeffrey Ng as 47th PBC&E chairman

Jeffrey Ng, Cathay Land Inc. president

Jeffrey Ng, president of Cathay Land Inc., is leading the country’s biggest business conference in November, the Philippine Chamber of Commerce and Industry (PCCI) announced today.

Jeffrey, as he is called by colleagues in business, was unanimously appointed the Chairman of the 47th Philippine Business Conference & Expo (PBC&E) by the PCCI Board of Trustees headed by its President Benedicto V. Yujuico.

The PBC&E is an annual summit of the country’s business and industry captains from all over the country. It is a venue for business-to-business, business-to-customers, business-to-government networking. It provides the platform for business leaders, policy makers, and development partners to share and exchange ideas on potentials and challenges facing business and its ecosystem.

Each year, the PCCI selects a theme based on trends shaping the development and evolving needs of business and the economy. The theme of this year’s PBC&E is “innovation.ph: Economic Recovery for All.” Discussions will focus on policies and programs to build a strong foundation for a more sustainable and resilient future.

Explaining the selection of Mr. Ng, PCCI President Amb. Benedicto Yujuico said, “Jeffrey’s economics background and pioneering business ventures spanning over three decades were the primary consideration in selecting him as Chair of the 47th PBC&E.”

Mr. Ng is an Economics Cum Laude graduate of University of the Philippines Diliman with a Master’s Degree in Business Economics at the University of Asia and the Pacific. He is currently President of UP School of Economics Alumni Association (UPSEAA). He is a Board member of Philippine Chamber of Commerce and Industry (PCCI) and Foundation for Economic Freedom (FEF). He is also the President of Cathay Land, Inc., (developer of South Forbes Golf City), the Astoria Hotels and Resorts, and Cathay Metal Corp. (steel manufacturing).

“Jeffrey is visionary in real estate and property development. For instance, he knew early on that the urban sprawl of Metro Manila would extend outside the metropolis, so he ventured in land-banking in the South and developed new thriving townships in Cavite,” Mr. Yujuico added.

“I am extremely honored with the appointment and I thank (President) Dickie and the entire PCCI Board for the trust. I am excited to lead the staging of the conference despite and because of the challenging situation we are in. The PBC has always strived to be relevant in raising the concerns of the business sector and bringing about resolutions that would help address these concerns. I am glad we are now seeing a whole of society and whole of government approach as we recover from the pandemic. Hopefully, through the PBC, I can contribute to the putting together of innovative solutions as we recover and build better and smarter,” Mr. Ng said.

This year’s conference will be held on Nov. 17-18, 2021. It will present and discuss how Innovation has become a catalyst to reboot the economy and accelerate growth to recover lost grounds and catch up with Ambisyon 2040’s goal for the country to become a middle-income economy in 20 years.

Among the highly anticipated segments of the conference is a session with pioneers and global leaders in innovation and technology, and one with the 2022 Presidentiables. The conference will conclude with the presentation of the business sector’s wish list to government.