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Sri Lanka hit by power cuts after key union goes on strike

A MAN waits in line to buy a domestic gas tank in Colombo, Sri Lanka, June 1. — REUTERS/DINUKA LIYANAWATTE

COLOMBO — Swathes of Sri Lanka were hit by electricity cuts on Thursday after a power sector union went on strike opposing new government regulations, compounding hardships as the country tackles a crippling economic crisis.

About 900 out of around 1,100 engineers of the state-run Ceylon Electricity Board (CEB), Sri Lanka’s main power company, went on strike at midnight, stalling operations at eight hydropower plants that generate around 1,000 MW of electricity.

Sri Lanka’s 22 million people are already suffering the country’s most serious financial turmoil in seven decades, with severe shortages of fuel, medicines and other essentials amid record inflation and a devaluation of its currency.

In a bid to stop the CEB Engineers’ Union from striking, Sri Lanka’s President Gotabaya Rajapaksa issued a gazette notification late on Wednesday declaring electricity supply as an essential service.

The legal directive makes it mandatory for engineers to report to work.

“President Rajapaksa called the union president late last night and made an appeal not to let the entire grid collapse. So we are working to ensure hospitals and other essential services have power,” the union’s joint secretary Eranga Kudahewa told Reuters.

“But the strike will continue,” he said.

The union is opposed to government plans to amend legislation governing the country’s power sector, which include removing restrictions on competitive bidding for renewable power projects.

But the government, pushing renewable energy as a potential solution for the country’s power woes, has underlined the need for the amendments to allow for quicker approval and implementation of projects.

Janaka Ratnayake, chairman of the power regulator Public Utilities Commission of Sri Lanka, said regions supplied by hydropower had seen power outages, including parts of the commercial capital Colombo.

“We are working to restore services and will talk with the unions to reduce public inconvenience,” Mr. Ratnayake told Reuters.

Sri Lanka was crippled by long power cuts earlier this year after it was unable to import fuel needed to generate electricity, though the situation has improved as monsoon rains have bolstered hydropower generation. — Reuters

More than 1,000 monkeypox cases reported to WHO

AN ELECTRON MICROSCOPIC image shows mature, oval-shaped monkeypox virus particles as well as crescents and spherical particles of immature virions, obtained from a clinical human skin sample associated with the 2003 prairie dog outbreak in this undated image obtained by Reuters on May 18, 2022. — CYNTHIA S. GOLDSMITH, RUSSELL REGNERY/CDC/HANDOUT VIA REUTERS

LONDON — There have been more than 1,000 monkeypox cases reported to the World Health Organization (WHO) in the current outbreak outside the countries in Africa where it more commonly spreads.

WHO Director-General Tedros Adhanom Ghebreyesus said the risk of monkeypox becoming established in these non-endemic countries was real but preventable at this point.

Twenty-nine countries have reported cases in the current outbreak, which began in May. None have reported deaths.

At a media briefing in Geneva, Mr. Tedros also said there had been more than 1,400 suspected cases of monkeypox this year in Africa and 66 deaths.

“It’s an unfortunate reflection of the world we live in that the international community is only now paying attention to monkeypox because it has appeared in high-income countries,” he said.

He said the outbreak was showing signs of community transmission in some countries. WHO recommends people with monkeypox isolate at home.

Rosamund Lewis, WHO technical lead on monkeypox, said that “interpersonal close contact” was the main way monkeypox spreads, although she added that the risk of aerosol transmission was not yet fully known. Health workers caring for monkeypox patients should wear a mask, she said.

Cases are still predominantly among men who have sex with men, the WHO added, although cases in women have been reported.

The U.N. agency is working with organizations including UN AIDS and community groups to raise awareness and stop transmission.

Post-exposure vaccination, including for health workers or close contacts, including sexual partners — ideally within four days of exposure — may be considered for some countries, WHO added. The vaccines being used are designed against smallpox, a related, more dangerous virus that the world eradicated in 1980, but also work to protect against monkeypox, studies have shown.

WHO senior official Sylvie Briand said the agency is assessing the potency of vaccines stockpiled against smallpox and contacting manufacturers and countries who have previously pledged vaccines. — Reuters

Media access and the right to know

CAMILO JIMENEZ-UNSPLASH

The accreditation of bloggers that Marcos Junior’s choice for Press Secretary (she will also head the Presidential Communication Operations Office or PCOO) is planning is not new. It was also considered by her predecessor, but abandoned because of problems over which bloggers would join the Malacañang Press Corps in covering the President.

There are thousands of bloggers who report and comment on public events and issues, but only a few can be so accredited. The PCOO will of course choose only those it approves of. Like the incoming PCOO head herself, avid Marcos Junior partisans who very likely even helped him campaign will be its preference.

The exclusion of others who do not meet that “qualification” will make the accreditation of the chosen bloggers, if it does happen, one more means through which the incoming regime can control the manner and extent to which its policies and actions are reported. And that seems to be the exact intention.

In a similar vein is the planned “review” of print, broadcast, and online media representation in the coverage of the Office of the President. Exactly what that review will consist of has not been revealed, but that it is even being planned suggests that only those journalists from “friendly” media organizations could be permitted to cover Malacañang.

If implemented, both would be consistent with some journalists’ and media organizations’ experience with Marcos Junior and his Spokesperson during the campaign and after. The former did not participate in the debates and panel discussions in which other candidates were present, and instead granted only one-on-one interviews with selected broadcasting and social media anchors. For his part, the latter ignored journalists from media organizations who were asking the hard questions that neither he nor his boss could answer with some credibility.

The apparent policy is to permit only selected journalists and media organizations access to Mr. Marcos. It was also in evidence after the elections. On May 26, for example, only NET25, Sonshine (sic) Media Network International (SMNI) and GMA 7 were invited to the first Marcos Junior press conference after his proclamation as President-elect.

Both NET25 and SMNI TV had endorsed the Marcos Junior-Sara Duterte team, and were even spreading disinformation and personal attacks against Vice-President Leni Robredo, her family, and her supporters before, during, and after the May 9 elections.

The apparent discrimination in favor of the three networks was explained away as a prior commitment to grant them the interviews they had supposedly requested during the campaign period. But online news site Rappler revealed that other media organizations had been misled by an advisory that said that the so-called “BBM Media Center” where the press conference was held would be closed on that date.

More than putting the independent media at a disadvantage, however, limiting media access to information is in violation of both press freedom and the citizen’s right to know. In supposedly democratic societies like the Philippines, that right is premised on the people’s need to monitor via the media what the officials to whom they have delegated their sovereign powers are doing and to hold them accountable.

The same right has already been compromised by the disinformation many bloggers and the usual mercenaries in print and broadcast media have been spreading so successfully as to make even worse the information crisis that is so prejudicial to the making of an informed citizenry.

But in addition to these infirmities is the media network PCOO runs. Its antecedents go back to the Marcos Senior dictatorship, which created the government media and communication system that succeeding administrations have inherited. The system provided information about government, but also limited the capacity of the privately owned media organizations that were then allowed to function to monitor regime policies and activities.

The system was guided by the regime and its allies in academia’s interpretation of “development communication,” of which the idea that development requires media collaboration with government was the most prominent. In practice this meant censorship, monitoring, and even imprisoning critical journalists, and disseminating through the now defunct Ministry of Information and the agencies it controlled only the “good news” about the regime. It called it “public information,” but what the system was actually doing was developing and enhancing a positive regime image.

Some journalists dismiss public information as just another name for public relations. But it does have the function of providing the citizenry with information it has a right to know. After 1986 there were attempts to reform the government media system. But the politicians who saw it as indispensable to their need for favorable publicity that can mean more votes come election time made doing so almost impossible.

Through Executive Order No. 4, the Benigno Aquino III administration reorganized the Office of the Press Secretary and created the PCOO in 2010. EO 4 declared the need for a public information system that would inform the public what the Executive Branch is doing. But the same EO emphasized the dissemination of Presidential “achievements,” which, during both the Aquino III and Duterte administrations, led to the exclusion of “bad news” from the information the system was providing. And yet, reporting relevant issues and events — the good news as well as the bad — can enhance public understanding of the problems the country has to contend with and what policies are needed to address them.

One of the essentials of an authentic public information system is therefore its openness to a diversity of viewpoints. This is unthinkable to the managers of the government information system as it has been handed down from the Marcos dictatorship to its successors. But opening it to diverse views by making the media under its control forums for debate and discourse on public issues is the only way the system can be of real service to citizens who need information that is as complete and as accurate as possible so they can make intelligent decisions on the things that concern them.

That it can be done has been demonstrated in other jurisdictions. Frequently mentioned in academic circles is the example of the British Broadcasting Corp. (BBC), a public media organization that provides information not only on government but on everything newsworthy.

Ending their dependency on whatever administration is in power is what government-owned radio and TV need to make their programming as relevant and open. Since the Marcos Senior dictatorship they have essentially served as the public relations arm of current administrations rather than providing reliable information. As a scan of their performance during the last election campaign will show, this has resulted in unprofessional reporting biased in favor of administration candidates and against their opponents.

The autonomy of the government media system, to start with, can be achieved by it getting a source of funding independent of any administration. The BBC is primarily funded by an annual television license fee paid by every household and organization that records and/or receives television broadcasts. Creating a similar funding source will require legislation, the details of which the legal geniuses of the incoming administration can forge in accordance with Philippine law. Once such funding is assured, the reorientation, reorganization, and professionalization of government radio and TV should follow.

Unfortunately, if the plans of the next PCOO head are indicative of anything, it is that recognizing the independence and respecting the diversity of all the media in furtherance of the people’s right to know is not what the incoming administration has in mind, but the exact opposite.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

The US should be paying more attention to the Pacific

FREEPIK

CHINA suffered a rare diplomatic setback last week when 10 Pacific Island nations deflected its offer of a sweeping trade and security deal. However, the rebuff won’t end China’s efforts to exert influence over these tiny and far-flung countries. The US needs to respond with equal resolve — or risk losing ground in a strategically vital region.

Though lightly populated, the Pacific Islands are critical to the security interests of the US and its allies. In particular, Micronesia, the Marshall Islands, and Palau — which are bound by so-called Compacts of Free Association that offer the US exclusive military access to their territory — serve as a “power-projection superhighway” linking US forces in Hawaii to forward positions in the theater. Western planners assume China’s ultimate aim is to counter the US by gaining a military foothold itself in countries such as the Solomon Islands or Kiribati, from where it could extend the reach of its navy and threaten lines of communication to Australia and New Zealand.

Given the stakes, US engagement with the region has been mystifyingly inconsistent. Past pledges to deepen economic and security ties — dating back 30 years — have fizzled out after initial fanfare. Efforts by the previous US and Australian governments to improve relations were undercut by their skepticism about climate change — an existential issue for low-lying island nations. US President Joe Biden’s administration sent a terrible signal by letting talks to renew economic assistance to the three Compact nations languish until very recently. The US only ranked fifth in direct aid to the region between 2009 and 2019, behind Australia, New Zealand, China, and Japan.

By contrast, China has provided not just aid but extensive trade opportunities: According to one estimate, it absorbed more than half the timber, seafood, and minerals exported from the region in 2019. Chinese companies have built lavish infrastructure projects throughout the islands. Chinese diplomats are more visible than their American counterparts, while top Chinese leaders have cultivated Pacific elites assiduously. In a sign of how China can exploit such ties to make strategic inroads, the country recently reached a security deal signed with the Solomon Islands that could open the door to Chinese naval visits.

To head off further Chinese expansion, the US will need to demonstrate that it understands the region’s long-term priorities and can meet them better than China can. The first step must be to swiftly conclude negotiations over assistance to the Marshall Islands, Micronesia, and Palau. In addition to education grants and eligibility for certain federal programs, the US may face demands for more extensive compensation for survivors of US nuclear tests, as well as greater environmental remediation. It’s a price worth paying. Leaving aside America’s moral obligations, these are small investments to make given the islands’ military value.

Just as importantly, the US needs to work with partners such as Australia and Japan to develop a comprehensive strategy for the region as a whole. They should pool resources to develop flagship infrastructure projects, improve digital connectivity, offer trade incentives, and provide development opportunities for Pacific Islanders. They should intensify efforts to address what local leaders say are their main security threats, from illegal fishing to climate change.

The US, in particular, should expand its diplomatic presence and engage more consistently with regional groupings such as the Pacific Islands Forum. Congress should move forward with proposals that would mandate just such a strategy, then fund it appropriately.

A dose of realism would also help. Pacific nations aren’t naive about Chinese ambitions, and most have little interest in being lectured or becoming pawns in a new Cold War. While drawing the line at a Chinese military presence, the US should accept that these countries will continue to pursue Chinese investment and trade. Building on shared interests, not coercion, is the best way for the US to both promote the welfare of the Pacific Islands and keep a watchful eye on China.

BLOOMBERG OPINION

Replying to SSS: Demonopolize social security

IN a Letter to the Editor yesterday, “SSS clarifies: Not a subsidy for operations,” Mr. Fernando F. Nicolas of the Social Security System (SSS) said that “the P51 billion given to SSS in 2020 was not a subsidy for the agency’s operation (but) wage subsidies to over three million workers nationwide under the Small Business Wage Subsidy (SBWS) program.”

I checked again Tables B.9 and B.11 of the Department of Budget and Management’s Budget of Expenditures and Sources of Financing (BESF) 2022 and the term used is “Budgetary support to government corporations.”

So the SSS is correct, it is “support” to member-workers and not a “subsidy” for its regular operations. My apologies to SSS for mixing them along with PhilHealth, the National Food Authority, the National Irrigation Administration, the National Electrification Administration, Bases Conversion and Development Authority, and other government corporations that just rely on taxpayers’ subsidy yearly to make them “viable.”

Now that we discuss SSS, a state-owned pension monopoly for private sector personnel, we can extend the discussion to another state-owned pension monopoly, that for government sector personnel, the Government Service Insurance System (GSIS). And why they need to be demonopolized and the pension system be made competitive. Three quick reasons.

One, people mobility needs pension mobility. The SSS was created in 1957, and the GSIS was created in 1937, periods when it was generally assumed that people would work, retire, and die in the Philippines. No longer the case now, many Filipinos work a few years here, then work abroad, and go back and forth, even migrate and retire abroad. Same for foreigners who opt to work and retire here. Their pension contributions should be credited wherever they work and retire later. Private pension and insurance firms with a global network would be in a better position to offer this kind of service.

Two, government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs) like the SSS are political institutions subject to political pressure by any administration in power. Expansion of benefits, even if revenues are not there, extension of funding even to non-contributing members and sectors, are yearly political pressures they must endure and are likely to give in to.

Three, the government needs more privatization money to service and retire huge public debt without any major tax hike. SSS, GSIS, other GFIs and GOCCs are good candidates for privatization in the long-term. SSS and GSIS combined have P2.28 trillion in assets as of 2022.

Government regulations are expanding, not shrinking. When government regulates players and owns some players at the same time, there is a conflict of interest, and favoritism towards government-owned players is inevitable. That is why demonopolization and privatization of those government enterprises should be the appropriate fiscal policy over the medium to long-term.

 

Read: SSS clarifies: Not a subsidy for operations, Public finance and UPSE’s PDE batch 33

5 ways to captivate your space with chinoiserie’s exotic allure

Bold patterns, intricate designs, and striking colors—chinoiserie is one of the most eccentric and maximalist interiors that offer vibrance and elegance to your home. The decorative features of chinoiserie depict a fusion of ancient Japanese and Chinese art and design cultures. Capture the authentic charm and refinement of chinoiserie with these tips from Wilcon Depot:

Wallpaper is the key

Well-furnished walls play a vital role in achieving a chinoiserie-style interior. You can often notice daring and vivid wallpapers on walls to create a lively, maximalist vibe. It encompasses different styles of vintage patterns, classic greenery, and fairytale-like elements. Decorate your walls with exquisite wallpapers from Heim. They offer a wide range of designs that best suit your home’s palette.

Yes, to birds and foliage

Another must for chinoiserie interiors are birds and foliage. Whether it be as a centerpiece, wall decor, or even furniture, these elements are essential in bringing out the chinoiserie aesthetic. Adorn your home with state-of-the-art pieces from Heim that offers a wide range of lovely embellishments to complete your space.

Opt for classic, traditional furniture

Chinoiserie is a mixture of old and new elements; and that includes the furniture. Play with your taste in design by using the unique texture of classic-themed furniture. You can choose from quality chairs, tables, and cabinets from Heim and Nobizzi. Natuzzi offers elegant, top-of-the-line sofas perfect for your comfort needs.

Glam up through colors

If there’s one thing you’re more than welcome to do, it’s layering different colors using different home items. With the right color palette, you can style your home into a stylish and whimsical space that offers a bright and modish ambiance. It’s a type of design that never goes out of style, perfect for your home’s lasting allure.

A nod to vintage flooring beauty

Unlike its walls, chinoiserie deals with more subtle flooring options. This interior design often uses wooden flooring to highlight the upper part of the room. Modernize your interior with wooden-finish tiles from Arte Ceramiche, Saigress, and Basel. These tiles are made from top-grade porcelain that is known for its durability, low maintenance material, and resistance to scratches, stains, liquids, fading, and many more.

Design your space with authentic and exotic beauty with these products you can find exclusive from Wilcon Depot.

 


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TUMI and Razer™ team-up debuts limited-edition esports-inspired bags

This spring, international travel and lifestyle brand, TUMI, has teamed up with Razer, the leading global lifestyle brand for gamers. Together, they have reimagined TUMI bestsellers as limited-edition gear for gamers. The collaboration leverages TUMI innovation and design excellence and Razer’s iconic aesthetic and branding, which is one of the most recognized in the global gaming and esports communities.

Deepening TUMI’s footing in the esports industry, four highly anticipated, co-branded styles dropped June 3. Each piece is co-branded with Razer’s triple-headed snake logo and signature green accents, blended with TUMI DNA. 

The take-everywhere Laptop Cover 15″ securely carries a gamer’s most prized possession while the Bozeman Sling is the ultimate grab-and-go bag for stashing cords, portable gaming gear and more. Equipped with a padded laptop pocket, the Finch Backpack is designed to carry heavy-duty gear. Gamers can also slip the Add-A-Bag sleeve over the handle of the International Expandable 4 Wheeled Carry-On Luggage for a complete travel kit. Instantly recognizable as TUMI, the case features the beloved 19 Degree contours. Its shell and lining are both made with recycled materials, spotlighting both TUMI and Razer’s commitment to sustainability. Plus, it has a USB-C port to keep global citizens powered on their journeys.

Only 1,337 units of each style from this limited collection will be released around the world. “1337” or “LEET” short for “elite,” was specifically chosen as gamers and esports athletes use this to signal the most skilled gamers.

The two brands not only collaborated on the collection, but also on a forward-thinking, futuristic campaign concept that brings the capsule to life. The motion-packed video is set in the metaverse and pays tribute to the determination of gamers to carry their team to victory with the slogan, “Carry Hard”.

“We have fully embraced our esports category with the Razer partnership. We are looking to deliver new and exciting products that are truly in line with the attitude and passion of their gaming community,” said TUMI Creative Director, Victor Sanz. “Their lifestyle is something that runs parallel to how we generate our products and how we are truly focused on all aspects of our customer’s lives, looking to ensure that only the best is in their hands for them to achieve their goals.”

“We are thrilled to partner with TUMI to bring this exclusive collection to our gaming community,” says Addie Tan, Associate Director of Business Development at Razer. “We know that our fans lead active lifestyles and sometimes have to carry their valuable battle stations with them while they are on the go. So, we wanted to arm them with high quality travel gear, offering them a balance of versatility and functionality so that they can keep winning, even on the go.”

The TUMI | Razer limited-edition capsule will be available at TUMI store in Powerplant Mall and www.TUMI.ph

Retail prices of the collection: 

  • TUMI | Razer International Expandable 4 Wheeled Carry-On Luggage at Php 73,990
  • TUMI | Razer Finch Backpack – For 15” Laptop at Php 55,990
  • TUMI | Razer Bozeman Sling Bag at Php 34,990
  • TUMI | Razer Laptop Sleeve – For 15” Laptop at Php 17,990

 


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Independence Day weekend at Las Casas Quezon City  

Independence Day, for all Filipinos, should be a day to celebrate! And we know that the offers and festivities in store this June 12 at Las Casas, Quezon City are sure to instill Filipino sense of pride.

Back by popular demand, Las Casas QC’s Independence Day Fiesta Street Party will showcase the finest of Filipino cuisine, talents, and more. Celebrate with a Pinoy street food feast or delight in a Filipino-themed buffet dinner. Enjoy entertainment by local artists and performers as you dine amidst the awe-inspiring architecture and artistry that surrounds the plaza.

Celebrate with local craft cocktails made from local liquors, local craft beers, delicacies and so much more. They have also recently relaunched a new menu showcasing classic and modern Filipino dishes and a brand-new Spanish tapas menu that is sure to delight.

For dining reservations and more information about Las Casas Quezon City, call +63917 136 6796 or +63933 822 4522 or visit www.lascasasqc.com.

 


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Phoenix Adarna takes flight with Cebu Pacific

A mobile game–themed flight from budget carrier Cebu Pacific and Tencent Games, a China-based game publisher, features Phoenix Adarna, a PUBG Mobile character inspired by the mythical bird of the same name from Philippine literature.   

Flight 5J 573, a Manila-to-Cebu flight that departs on June 15, will be assisted and crewed by personnel wearing costumes inspired by Phoenix Adarna and other PUBG Mobile characters. 

“Tencent Games and PUBG Mobile have always wanted to partner with an airline company especially since aircrafts are recurring elements within our game,” said Noel Bernard N. Dalmacio, senior business development manager of Tencent Games Philippines, in an e-mail to BusinessWorld.

“We hope that, through this partnership, our game can be a platform to promote Filipino culture and tourism to our young audience,” he said. “We definitely foresee more collaborations with Cebu Pacific in the future — perhaps even taking the partnership higher in terms of offerings and unique experiences we’ll provide to both our markets.” 

The themed flight — a first in Philippine aviation, according to Mr. Dalmacio — includes trivia games and limited-edition PUBG Mobile x Cebu Pacific merchandise.  

PUBG Mobile is a freemium game that has over 5 million registered users, with around 500,000 daily active users in the Philippines. It has more than 500 million downloads worldwide.  

The details of the mobile game-themed flight are subject to change without prior notice. — Patricia B. Mirasol

Global investors write to UN to urge global plan on farming emissions

REUTERS

LONDON — Investors managing $14 trillion have urged the United Nations to create a global plan to make the agriculture sector sustainable and curb one of the biggest sources of climate-damaging emissions, a letter seen by Reuters showed. 

Food production accounts for around a third of global greenhouse gas emissions and is the main threat to 86% of the world’s species at risk of extinction, the group said, while cattle ranching is responsible for three quarters of Amazon rainforest loss. 

Climate scientists warned in April that the world’s goal of limiting global warming to 1.5 degrees Celsius (2.7°F) above the pre-industrial average by mid-century could not be met without marked changes in land use. 

Despite this, a FAIRR Initiative study last year showed the emission reduction plans of most of the Group of 20 (G20) nations had no target to reduce agricultural emissions. 

Writing to the director general of the UN’s Food and Agriculture Organization (FAO), Qu Dongyu, the letter, coordinated by the investor network FAIRR, said the agency was best-placed to take the lead on creating a road-map to ensure better planning. 

“To keep the 1.5C goal within reach, the global food system urgently requires a gold-standard roadmap that reduces emissions whilst protecting the health and livelihoods of people across the globe,” said Guenther Thallinger, chair of the UN-convened Net-Zero Asset Owner Alliance (NZAOA), one of the signatories of the letter. 

“We urge the FAO to act on the science and work towards delivering this landmark roadmap.” 

As well as the NZAOA, whose members include insurers Allianz and Swiss Re, 33 other investors signed, including US asset manager Capital Group and Britain’s Aviva Investors. 

The call for action was also backed by Christiana Figueres, former executive secretary of the UN Framework Convention on Climate Change and one of the architects of the 2015 Paris Agreement on climate. 

FOCUS ON ‘GREEN REVOLUTION’
The launch of a similar report for the energy sector last year by the International Energy Agency had shown how successful such a roadmap could be, the investors said, and would prove a crucial tool to help investors and other stakeholders change their practices more quickly. 

Although the investors considered the FAO best-placed of the UN agencies to lead such work, Olivier De Schutter, co-chair of the International Panel of Experts on Sustainable Food Systems, said it had historically delivered a “mixed message about the impacts of agriculture … on climate change.” 

Despite typically promoting approaches relying on heavy machinery, large-scale irrigation, chemical fertilizers and pesticides to feed the world, all of which substantially increase greenhouse gas emissions, it had also pushed for low-input solutions that reduce dependency on fossil fuels. 

“The FAO has been far from consistent in this regard and there remains a huge gap between its pledge to support agroecology and the reality of the advice and project support it gives to countries,” he said. “My hope is that the initiative of these investors can force the FAO to rethink its policies.” 

The FAO did not respond to a request for comment. 

As well as setting clear guidance for companies and other stakeholders as to the volume of emissions that must be mitigated to limit warming to 1.5°C, the letter drew special attention to the need for a pathway to cut methane emissions. 

Livestock account for nearly a third of the global methane emissions linked to human activity, released in the form of cattle burps, manure and the cultivation of feed crops. 

Methane stays in the atmosphere for two decades compared with the centuries it takes for carbon dioxide to wash out, but a single methane molecule traps far more heat. — Reuters

US asks if China, Russia favor their ties over world security with North Korea vetoes

REUTERS/MIKE SEGAR/FILE PHOTO

UNITED NATIONS — The United States on Wednesday questioned whether China and Russia had elevated their “no limits” strategic partnership above global security by vetoing more UN sanctions on North Korea over its renewed ballistic missile launches. 

“We hope these vetoes are not a reflection of that partnership,” senior US diplomat Jeffrey DeLaurentis told a meeting of the 193-member UN General Assembly in response to the vetoes in the Security Council two weeks ago. 

“Their explanations for exercising the veto were insufficient, not credible and not convincing. The vetoes were not deployed to serve our collective safety and security,” said Mr. DeLaurentis, addressing the assembly after China and Russia. 

China and Russia declared a “no limits” partnership in February, nearly three weeks before Russia began its invasion of Ukraine. Their vetoes on North Korea publicly split the UN Security Council for the first time since it started punishing Pyongyang with sanctions in 2006. 

During a right of reply in the General Assembly later on Wednesday, Chinese diplomat Wu Jianjian said China categorically rejected “presumptuous comments and accusations against China’s voting position.” 

“China’s vote against the US-tabled draft resolution was entirely reasonable and justified,” Mr. Wu said. “Continuing to increase the sanctions against DPRK (North Korea) would only make the likelihood of political solution even more remote.” 

The Russian UN mission did not immediately respond to request for comment on the US remarks. 

North Korea has carried out dozens of ballistic missile launches this year, including intercontinental rockets commonly known as ICBMs, after breaking a moratorium on tests that it self-imposed in 2018 after leader Kim Jong Un first met then-US President Donald Trump. 

The United States has warned that North Korea is preparing to conduct a seventh nuclear test, and says it will again push for UN sanctions if it takes place. 

Earlier on Wednesday in his speech to the General Assembly, China’s UN Ambassador Zhang Jun blamed a “flip-flop of US policies” for a renewed escalation of tensions, pushing Washington to take action. 

“There are many things that the US can do, such as easing sanctions on the DPRK (North Korea) in certain areas, and ending joint military exercises (with South Korea). The key is to take actions, not just talk about its readiness for dialogue with no preconditions,” said Mr. Zhang. 

Mr. DeLaurentis said Washington was “more than prepared to discuss easing sanctions to achieve the complete denuclearization of the Korean Peninsula.” He said the United States has repeatedly tried to restart talks, sending public and private messages, but had not received a response. 

North Korea defended its development of ballistic missiles and nuclear weapons as protection against “direct threats” from the United States. Mr. DeLaurentis said Pyongyang’s missile launches and nuclear tests were unprovoked. 

“The measures that the DPRK is taking for bolstering national defense capabilities are an inevitable choice to cope with the hostile threats of the US within the scope of self-defense rights,” North Korea’s UN Ambassador Kim Song told the General Assembly. — Reuters

ECB to chart course out of stimulus, setting stage for rate hikes

FRANKFURT — The European Central Bank (ECB) will pull the plug on years of stimulus on Thursday and signal a string of rate hikes to fight surging inflation, leaving markets only to guess the size and speed of policy tightening. 

With inflation at a record-high 8.1% and broadening quickly, the ECB has already flagged a series of moves, hoping to stop rapid price growth from developing into a hard-to-break wage-price spiral. 

Details remain elusive, however, as predicting inflation has proven impossible, suggesting the ECB will only signal its initial steps on Thursday and maintain plenty of discretion further down the line. 

What appears certain is that the ECB will end its long-running Asset Purchase Programme at the end of this month, promise a rate hike on July 21 and signal that the deposit rate will be out of negative territory in the third quarter. 

Everything else, including the size of the initial rate increase from minus 0.5%, is likely to be left open, with ECB chief Christine Lagarde emphasizing flexibility and optionality. 

While the bank has signaled a preference for 25-basis-point hikes, the energy-driven surge in prices could change that in just weeks. A handful of policymakers have already said that a bigger increase needs to remain in play. 

Supporting their case, new economic projections from the ECB are likely to indicate that inflation across the 19 countries that use the euro will hold above its 2% target through 2024, pointing to four straight years of overshooting. 

“The likelihood of a 50-basis-point hike is rising by the day,” Moody’s Analytics senior economist Kamil Kovar said. 

“We currently view a 50-basis-point hike in July as possible but unlikely. In contrast, a 50-basis-point hike in September is as likely as it is unlikely at this point.” 

“It is even possible that the bank will resort to multiple 50-basis-point hikes,” he said. 

Markets are pricing in 135 basis points of rate hikes by the end of this year, or an increase at every meeting from July, with some of the moves in excess of 25 basis points. 

That leaves the ECB in a tricky position, just months after Ms. Lagarde said that a rate hike this year was highly unlikely. 

If she ignores markets, even more aggressive tightening might be priced in, unnecessarily pushing up borrowing costs. But if she pushes back strongly, the ECB president might signal a commitment that could become obsolete within weeks, much like the no rate increase pledge. 

The ECB’s first rate hike in over a decade would still leave it trailing most of its global peers, including the US Federal Reserve and the Bank of England, which have been raising aggressively and promising even more action. 

“The hawkish pivot begins,” Bank of America said in a note. “We expect the ECB to leave the door open to 50 basis points in July and September by signaling that negative rates will end during the third quarter.” 

WHERE DOES IT END? 

While the start of policy tightening is now set, the end point remains uncertain. 

Ms. Lagarde has said that rates should move towards the neutral point at which the ECB is neither simulating nor holding back growth. But this level is undefined and unobservable, leaving investors guessing just how far the ECB wants to go. 

“In our view, the ‘neutral’ rate … is around 2%,” Berenberg economist Holger Schmieding said. 

“We expect the ECB’s main refinancing rate — currently 0.0% — to reach this level in mid-2024 after three rate hikes of 25 basis points in the second half of 2022, three such moves in 2023 and two further increases in the first half of 2024.” 

The main refinancing rate is formally the ECB’s benchmark but it has used the rate on its overnight deposit facilities for banks as its main policy rate for much of the past decade given that banks have piled up hundreds of billions of euros worth of excess liquidity. 

Another question is how the ECB will handle the divergence in borrowing costs of various member states. 

Nations with bigger debt piles, such as Italy, Spain and Greece, have already seen a sharper increase in borrowing costs — a headache for the ECB’s one-size-fits-all monetary policy. 

While the ECB promised to fight “unwarranted fragmentation” it has yet to define unwarranted and has not said what action it would take to tackle it. 

Ms. Lagarde could clarify these points but she is unlikely to announce a specific tool on Thursday, emphasizing instead the ECB’s flexibility and commitment to act quickly in case of market turmoil. — Reuters