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Team USA loses again, drops Olympic exhibition to Australia

TEAM USA started its Olympic exhibition run with a second consecutive stunning loss Monday, falling to Australia (91-83) in Las Vegas.

The defeat comes two days after Team USA’s first-ever loss to an African nation, when the Americans fell 90-87 to Nigeria.

Patty Mills of the San Antonio Spurs led the Boomers with 22 points on nine-for-21 shooting, with Joe Ingles (Utah Jazz) adding 17 points and three 3-pointers. Australia also received 12 points and three steals from Matisse Thybulle of the Philadelphia 76ers and 11 points from Aussie league veteran Chris Goulding.

Damian Lillard scored 22 points for Team USA, going six-for-11 from 3-point range. Kevin Durant contributed 17 points in 28 minutes and Bradley Beal scored 12 on just six shots in 32 minutes. Jayson Tatum recorded just eight points on 4-for-12 shooting, misfiring on all six of his 3-point tries.

Defense was the biggest issue for the US, which shot 46.2 percent from the floor compared to 52.9 percent (36-for-68) for Australia. Team USA was also outrebounded 32-25.

The US squad went with a couple new starters against Australia, with Draymond Green and Jerami Grant joining All-Stars Durant, Lillard and Beal in the opening lineup.

Team USA came out firing and held a 27-24 lead after one quarter, and built the advantage to nine points at 46-37 by half time. But Australia outscored the Americans (32-18) in the third quarter, and although Team USA fought back to take a fourth-quarter lead, Mills scored 10 of his points in the final period to spur the upset.

The Americans are losers of consecutive games for the first time since professionals began representing the country in 1992. — Reuters

England’s Black players face racial abuse after Euro 2020 defeat

LONDON — Black players in the England soccer team have been subjected to a storm of online racist abuse after their defeat in the final of Euro 2020, drawing wide condemnation from the squad’s captain, manager, royalty, religious leaders and politicians.

Marcus Rashford, 23, Jadon Sancho, 21, and Bukayo Saka, 19, were the targets of the abuse after they missed spot-kicks in a penalty shootout with Italy which settled Sunday’s final after the game finished as a 1-1 draw.

The comments have prompted a police investigation and wide condemnation, although critics accused some ministers of hypocrisy for refusing to support a high-profile anti-racist stance the players had made during the tournament.

The Times newspaper reported that British ministers will tell social media companies to immediately hand over details of those who made online racially abusive comments towards the players.

“Three lads who were brilliant all summer had the courage to step up and take a pen when the stakes were high,” England captain Harry Kane wrote on Twitter.

“They deserve support and backing, not the vile racist abuse they’ve had since last night. If you abuse anyone on social media, you’re not an @England fan and we don’t want you.”

England manager Gareth Southgate called the abuse “unforgivable.”

“I know a lot of that has come from abroad, that people who track those things have been able to explain that, but not all of it,” he told a news conference.

Rashford himself wrote in a social media post late on Monday that he was thankful to his team mates for the support they extended to him and that he was overwhelmed by the messages of support towards him.

“I can take critique of my performance all day long… but I will never apologize for who I am and where I came from,” Rashford said in his statement.

The England team have earned praise for their stand against racism, while a number of players have also campaigned on other social causes. The multi-racial makeup of the squad had been hailed as reflecting a more diverse modern Britain.

The team had highlighted the issue of racism by taking the knee before all their matches — a protest made by American football quarterback Colin Kaepernick and followed by the Black Lives Matter movement last year — saying it was a simple show of solidarity against racial discrimination.

However, some fans have booed the gesture, with critics viewing it as a politicization of sport and expression of sympathy with far-left politics.

Some ministers have been accused of hypocrisy for refusing to criticise those who booed and using it as part of a wider “culture war,” often portrayed as a rift between those wanting to protect Britain’s heritage from a “woke” youth, who see their elders as blocking moves to end racial and social injustice.

“This England team deserve to be lauded as heroes, not racially abused on social media,” Prime Minister Boris Johnson wrote on Twitter. “Those responsible for this appalling abuse should be ashamed of themselves.”

While Johnson himself said the team should not be booed, his own spokesman had initially declined to criticize the fans over the issue when asked last month.

‘STOKE THE FIRE’
Interior minister Priti Patel had also said she did not support players taking the knee because it was “gesture politics” and that it was a choice for the fans whether to boo players. On Monday, she joined those who denounced the abuse, but was criticized by England defender Tyrone Mings.

“You don’t get to stoke the fire at the beginning of the tournament by labelling our anti-racism message as ‘Gesture Politics’ and then pretend to be disgusted when the very thing we’re campaigning against, happens,” he posted on Twitter.

The opposition Labour Party said Johnson and Patel were guilty of hypocrisy.

“The prime minister failed to call out the booing, so whatever he says today rings hollow,” said Labour leader Keir Starmer.

While the social media feeds of the players also showed huge levels of support, the abuse overshadowed the positive messages.

Justin Welby, the Archbishop of Canterbury, said those who abused the players must be held accountable and Britain’s Prince William, who is president of the Football Association, said he was sickened.

“It is totally unacceptable that players have to endure this abhorrent behavior,” Queen Elizabeth’s grandson said.

Seven times Formula One world champion Lewis Hamilton voiced his support for the players.

The Football Association said fans who exhibited such “disgusting behavior” were not welcome and European soccer governing body UEFA echoed its call for the strongest possible punishments.

London Police said officers were aware of the offensive and racist comments, and would take action. A mural of Rashford, who had campaigned for poor children to be given more support during the pandemic, was also covered in abuse.

A lawmaker in Prime Minister Johnson’s Conservative Party also apologized after a private message in which she suggested Rashford should have spent more time perfecting his game than “playing politics” became public.

The issue of online abuse of players led to British soccer authorities briefly boycotting social media platforms before the tournament, while Britain is planning legislation to force tech firms to do more.

A Twitter, Inc. spokesperson said they had removed more than 1,000 tweets and permanently suspended a number of accounts, while Facebook, Inc. said it too had quickly removed abusive comments. — Reuters

No Foster this time

Suns head coach Monty Williams knows the futility of disputing foul calls ex post facto. Having been in National Basketball Association player rosters and coaching ranks for close to three decades, he appreciates the work of referees and understands the difficulties they face in trying to regulate the action. Yet, he also feels there are times when he has to speak up against perceived disparities in the way whistles are blown to the detriment of his teams. He’s working the system, to be sure, compelling reviews and second looks in hopes of setting up a more favorable landscape for the next outing.

Which was why Williams initially proved coy in the aftermath of the Suns’ loss to the Bucks in Game Three of the NBA Finals the other day. He began with a disclaimer. “I’m not going to complain publicly about fouls,” he said. “Not going to do that.” And he was true to his word; he didn’t talk about fouls. Instead, he slyly pointed to the disparity in free throws — thereby making his point all the same. “You can look. We had 16 free throws tonight. One person had 17.”

All things considered, critics wouldn’t be wrong to argue that Williams was being disingenuous. After all, the numbers per se never tell the whole story. As Mark Twain once observed, “There are three kinds of lies: lies, damned lies, and statistics.” And, in the case of the Bucks, they just so happen to have a player whose unique skill sets almost always lead to contact; it’s why that player has normed close to double digits in charity attempts over the last three years. That player is, needless to say, two-time Most Valuable Player awardee Giannis Antetokounmpo, the “one person” Williams alluded to in his measured criticism of the work of the men in gray.

Significantly, Williams made his observation after the Suns’ loss in Game Three. He did not do the same after the Suns’ win in Game Two, when Antetokounmpo shot 18 free throws, four more than his charges all told. At the same time, it would be easy for the Bucks to counter that the Greek Freak’s bruising style of play elicits calls that go both ways, and that a poor percentage from the stripe encourages the competition to deliberately cause whistles.

In any case, Game Four beckons, and it remains to be seen whether Antetokounmpo will get close to his Finals norm of 12 free throws per game. For the Suns, there is one bit of good news; referee Scott Foster will not be around. The latter was part of the crew that worked Game Three, and the setback was Playoff MVP favorite Chris Paul’s 12th straight against the official. Then again, correlation does not imply causation, so the purple and orange would do well to focus instead on correctable realities moving forward. Else, they’ll be felled by demons of their own creation.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Addressing the Philippine education crisis

BW FILE PHOTO

Part 4

The most significant lesson I learned from reading the book Why Nations Fail by Daron Acemuglo and James Robinson is the importance of institution building in the long-term ascent to sustainable and equitable integral human development. For example, if we are now getting kudos from independent international think tanks and financial institutions about our prospects for long-term growth, despite our short-term inability to manage the pandemic, one of the reasons is that we have succeeded over the last two decades to build strong institutions in our monetary and fiscal sectors. Our Central Bank is known to be one of the best run in the region and our fiscal managers have exercised admirable fiscal discipline, having kept for some time now our debt-to-GDP ratio and fiscal deficit at very reasonable levels.

In addressing the current education crisis, a very crucial institution that we have to establish as early as possible is what the Philippine Business for Education (PBEd) is batting for: the immediate convening of a multi-sectoral Educational Commission (EdCom) to seriously address the country’s learning crisis without further delay. As envisioned by PBEd, the EdCom should be multi-sectoral, with representatives not only from the legislature and executive but also from the academe, business sector, and education interest groups. In addition, it must tackle concerns such as learning outcomes, learning inequities, and resiliency of the education system while remaining open to reforms such as a more decentralized system and new governance structure.

As Love Basillote, Executive Director of PBEd, wrote in the Philippine Daily Inquirer: “We want an EdCom that will reimagine and rethink Philippine education and will draft a roadmap for the future. The EdCom will be composed of experts and leaders from the government, business community, civil society, and interest groups. The EdCom’s roadmap is envisioned to be strategic, offering solutions that will lead to systemic reforms toward an inclusive and resilient Philippine education. The roadmap will focus on the key areas of teaching and learning, governance, access and equity, and workforce development.” Fortunately, the ball has started rolling when an EdCom resolution passed the Committee level on May 27 in the House of Representatives. The sponsors of the resolution were Representatives Kiko Benitez, Stella Quimbo, Fidel Nograles, Rommel Angara; Chairperson Mark Go and members of Committee on Higher, Technical Education; and Chairperson Roman Romulo and members of the Committee on Basic Education and Culture. If the present Legislature is able to pass this EdCom bill, this government will be remembered by future generations as having started the building of an institution that can significantly address the education crisis that the country has been facing for some time now.

Because the key to improving the quality of education is having better teachers, the PBEd has helped draft a bill that can be introduced in the Philippine Senate. The Act calls for improving teacher quality through the establishment of a teacher education for achievers’ program. According to UNESCO, research has shown that teachers, more than any other constituent group in education, determine educational quality and student achievement. In particular, “Research studies have shown positive associations between student achievement and teachers’ academic skills, level of content knowledge, years of experience and participation in content-related professional development opportunities.” There have been sporadic efforts in the past to strengthen pre-service teacher education and to impose higher admission requirements in teacher education programs, which included aptitude and motivation. As can be gleaned, though, from the continuous underperformance of young Filipino students in international rankings, improving teacher quality through teacher education and training still lacks the widespread support and prioritization that it deserves.

It is not enough to attract the best to teach. There must also be serious efforts to uplift the image of teaching professionals and to support the job placement of qualified teachers, especially in the primary and secondary public education system. The bill drafted by PBEd is aimed at enacting the Teacher Education for Achievers (TEACH) Program provides stronger incentives to develop high-achiever students as effective teachers. The TEACH Program is merit-based in which applicants have to pass competitive examinations, both in the partner schools and in the program application. It follows a fast-tracked model of teacher education program recruitment. It recruits career-shifters to pursue a Certificate in Teaching Program (CTP) and junior-level undergraduates to complete teacher education programs.

In the same way that in the business world coaching or mentoring has become a common practice to prepare future generations of business leaders, mentorship will be incorporated in the TEACH Program, Prospective teachers have to be prepared academically, socially, and psychologically, too. A proven means to do this is through mentorship, which will be at the heart of the TEACH Program, where grantees will be guided by vetted and qualified mentors. The SEAMEO Innotech study on teacher motivation showed that mentors inspired students to follow a similar path of teaching. In turn, the students, when they become teachers, have stronger resolve to persevere in the teaching profession. In fact, here again in this very crucial process of person-to-person guidance, the many initiatives of business and civil society to give a hand to the public sector in promoting the common good will be very helpful.

There have been numerous instances in which, on their own initiatives, non-governmental organizations and business enterprises have worked closely with public school principals and teachers to improve the quality of teaching. Let me just cite a few examples to encourage many more institutions to help in improving the quality of teachers.

CitySavings, a savings bank owned by the Aboitiz group, regularly supports the Brigada Eskwela of the Department of Education. At the height of the pandemic, the bank mobilized the provision of safety and sanitation essential to complement the DepEd’s efforts in ensuring the health, safety, and well-being of teachers, students, and non-teaching personnel. In consultation with DepEd regional and division offices within the local communities, the bank contributed to various education-related interventions through other Teaching and Learning Support initiatives. It provided technological support and learning equipment, printing materials, and supplies as well as handwashing facilities to enable schools to keep up with the expectation of the new normal ways of teaching and learning.

As the public schools pivoted to online instruction, CitySavings helped with both funds and manpower in implementing Project Agile: Learning Series for Teachers, a string of virtual training modules that aim to equip teachers with tools and skills to efficiently collaborate and conduct classes online. To further advance the teachers’ “digitization,” CitySavings partnered with Thames International EduRescue and Akadasia Singapore for HEROES 2021 (Help Educators Rise to Online Education for SY 2020-2021). This is a more intensive training program designed to upgrade educators’ online teaching skills and provide the tools needed to transition into flexible learning modalities in delivering classroom instruction. In partnership with Alchemy Education, Inc. the bank implemented the Project Teach: Educator Empowerment Program (EEP), an innovative teacher development initiative that provides schools with the means to give all teachers year-round training on critical areas that affect the quality of teaching and learning.

Going beyond teaching skills, the bank, in partnership with MentalHealthPH, provided practical tips and professional advice on how teachers can better take care of themselves, all from the comfort of their homes. There were 205,000 teaching and non-teaching personnel who registered at the online courses and webinars provided by CitySavings to 755 DepEd beneficiary schools, divisions, and regional offices nationwide. Employees of the bank, coming from 107 branches nationwide, volunteered 3,700 hours in the implementation of the various initiatives.

Another banking group that has done much to help the Department of Education improve the quality of basic education is the Metropolitan Bank and Trust Company (Metrobank). The Metrobank Foundation, in partnership with DepEd and the Mathematics Teachers Association of the Philippines, sponsors an annual math competition aimed at raising the competitiveness of elementary and high school students. It is the longest-running math competition in the country with more than half a million students participating in the national elimination rounds yearly. The Foundation also has many initiatives aimed at motivating teachers at the basic education level to excel in their profession.

The Foundation was founded under the initiative of the late George Ty, Founder of Metrobank. In this regard, it is notable that many of the ongoing efforts of the private business sector to help improve the quality of teachers can be attributed to businesses established by Filipino Chinese entrepreneurs like Mr. Ty. The other prominent ones are the SM Group founded by the late Henry Sy; the Lucio Tan group; and the Megaworld Group established by Andrew Tan. This fact may be attributed to the very high value given to education in the Confucian culture associated with the Chinese. We have to mobilize all these resources and more in addressing the Philippine education crisis.

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is Professor Emeritus at the University of Asia and the Pacific, and a Visiting Professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Filipino leaders must stand firm on the 2016 Arbitral Victory

JULIAN FELIPE REEF (WHITSUN REEF) — HTPS://LANDSATLOOK.USGS.GOV/

The complexity of the Indo-Pacific region has grown beyond the strategic competition between China and the United States. As China continues to disrupt the current regional security architecture, states have become increasingly aware of its potential impact on peace and stability in the Indo-Pacific. China’s aggressive posturing has also challenged the significance of multilateralism and strategic partnerships in maintaining a rules-based international order.

During the opening ceremony of the 9th World Peace Forum in Beijing, China’s State Councilor and Foreign Minister Wang Yi highlighted China’s rising confidence and assertive stance in international affairs. Echoing the message delivered by President Xi Jinping during the celebration of the 100th anniversary of the Chinese Communist Party, he said that China is not the same as it was 100 years ago, and “no one should underestimate the strong will and the extraordinary ability of the Chinese people to defend their national sovereignty, security, and development interests.”

Foreign Minister Wang Yi also shared his thoughts on upholding and practicing multilateralism, calling it the “only way to resist unilateral bullying and achieve lasting peace and common security.” He said that China would carry forward the common values of mankind and work with other countries to build a world of lasting peace and universal security.

This keynote address is an attempt to demonize the growing international rejection of Chinese expansionist aggression in the South China Sea. China’s recent actions in the West Philippine Sea undeniably prove that the real bullying is coming from Beijing. More than 200 Chinese maritime militia vessels were spotted along the Julian Felipe Reef (Whitsun Reef) early this year, renewing tensions in the West Philippine Sea. Despite the efforts of the Philippine government to de-escalate the situation, China has refused to cooperate and call for the withdrawal of these vessels. Until now, they have continued to linger in different areas within the country’s exclusive economic zone (EEZ), violating Philippine sovereignty and maritime rights under international law.

The persistent and illegal presence of Chinese maritime militia vessels demonstrates China’s capacity to circumvent international law in order to advance its political, economic, and military objectives. At the same time, it has also shown the weakness of the Duterte administration’s appeasement policy towards China. Declaring China as a friend and a partner for peace and development, President Duterte has set aside the 2016 arbitral ruling and remained silent on issues related to China’s expansionist agenda and gray zone operations in the West Philippine Sea. In a cautious attempt not to agitate China, President Duterte has even imposed a gag order on key cabinet officials after they criticized Beijing for its incursions in Philippine waters.

These actions veered away from the previous administration’s stance regarding China and the West Philippine Sea. The late President Benigno Aquino III took China to an international court and challenged the validity of its expansive territorial claims in the West Philippine Sea. Winning the maritime arbitration case, the Aquino administration also maintained close ties and sought support from traditional allies and partners.

On the fifth anniversary of the 2016 arbitral victory, the Philippines should be reminded of its role and commitment to the preservation of a rules-based international order. Although the pandemic continues to be the Philippine government’s most critical concern, the country’s sovereignty and territorial integrity must not be set aside. The country’s leaders must stand firm in asserting the Philippines’ maritime claims over the West Philippine Sea.

The Philippines does not only have every right to exercise its sovereignty over these maritime zones, but the country also has the sole right to patrol, protect, and harness its natural resources in accordance with international law. Consequently, the Philippine government must also recognize the security threats brought by China and stop tolerating any illegal incursions in Philippine waters.

President Duterte must also stop using the narrative that small states cannot stand up to China. The Philippines is not alone in the fight to defend its national sovereignty and territorial integrity. Its legal victory against China is recognized by the international community and like-minded states, including the United States, Australia, Japan, and India. Similarly, members of the Quad, G7, and NATO have also released their respective statements on China and renewed their commitments to uphold a rules-based international order.

In line with this, the Philippines must not allow China’s continuous refusal to acknowledge the 2016 arbitral victory and its blatant disregard of the rule of law. The Philippine government needs to step up and strategically work with partners and allies to create a comprehensive foreign policy and national security strategy that prioritizes the country’s territorial integrity, national interests, and shared values.

The future of the West Philippine Sea lies in the multilateral understanding and collaborative action of the international community to implement international laws, treaties, and agreements in the preservation of a rules-based international order. Upholding the 2016 arbitral victory is the first imperative step to maintain this order and the Philippine government must assert this right!

 

Victor Andres “Dindo” C. Manhit is the President of the Stratbase ADR Institute.

Love in the time of employment

FREEPIK
FREEPIK

Management prerogative refers to every employer’s inherent right to regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, the time, place, and manner of work, work supervision, transfer of employees, lay-off of workers, and discipline, dismissal, and recall of employees. The only limitations to the exercise of this prerogative are those imposed by labor laws and the principles of equity and substantial justice. (Peckson v. Robinsons Supermarket Corp., G.R. No. 198534, July 3, 2013)

However, does the principle of management prerogative authorize employers to incorporate in employment contracts or company policy a provision on stipulation against marriage?

STIPULATION AGAINST MARRIAGE INVOLVING WOMEN EMPLOYEES
Under Article 134 of the Labor Code, it is unlawful for an employer to require, as a condition for or continuation of employment, that a woman shall not get married or to stipulate expressly or tacitly, that upon getting married, a woman employee shall be deemed resigned or separated.

It is also unlawful to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of marriage.

In one case, an airline company implemented a policy requiring its prospective flight attendants to be single and once married are automatically separated from service. The airline reasoned that the policy was fair and reasonable considering the peculiarities of the profession. It further contended that Article 134 applies only to women employed in ordinary occupations and not to extraordinary ones like flight attendants. The said policy was declared void for being violative of Article 134 of the Labor Code prohibiting discrimination against married women. Article 134 does not distinguish whether a woman is engaged in an ordinary or special occupation as the sweeping intent of the law is to promote non-discrimination on the employment of women. (Zialcita, et al. vs. Philippine Air Lines, Case No. RO4-3-3398-76, Feb. 20, 1977)

In another case, an employee was dismissed pursuant to the company’s policy of not accepting or of disqualifying any woman who contracts marriage. While the employee concealed her married status, and hence committed dishonesty, the Supreme Court declared the said policy as void in derogation of the provision stated in Article 134 of the Labor Code. It held that the policy was not only contrary to law, but also to good morals and public policy by depriving women of their freedom to choose their status which is considered as an inherent, intangible, and inalienable right. (Philippine Telegraph and Telephone Company v. NLRC, G.R. No. 118978, May 23, 1997)

STIPULATION AGAINST MARRIAGE AS A REASONABLE BUSINESS NECESSITY
The Labor Code speaks particularly of women in cases involving stipulation against marriage. However, jurisprudence is replete with cases with respect to stipulation against marriage regardless of sex which were imposed for a legitimate business concern in the exercise of management prerogative.

For instance, in one case, the company imposed a policy prohibiting: a.) the hiring of new applicants who are related to an employee of the same company up to the third degree of relationship; and b.) employees who developed a friendly relationship during the course of their employment from getting married unless one of them resigns.

For the policy to be considered valid, however, the employer must present undisputed proof of a reasonable business necessity. As the company failed to prove a legitimate business concern in imposing the questioned policy, the Supreme Court struck down the same and held that the implementation of the policy was an invalid exercise of management prerogative. (Star Paper Corp. v. Simbol, G.R. No. 164774, April 12, 2006)

In another case, the Supreme Court declared a pharmaceutical company’s policy prohibiting its employees from marrying employees of any competitor company as valid pursuant to the principle of reasonable business necessity. The said company policy was considered reasonable under the circumstances since personal or marital relationships might compromise and unduly affect the interest of the company. (Duncan Association of Detailman-PTGWO v. Glaxo Welcome Philippines, Inc., G.R. No. 162994, Sept. 17, 2004)

By adopting the said policy, an employer merely seeks to protect its economic interest, its reasonable returns on investments and to expansion and growth, including the protection of its trade secrets, marketing strategies, and other confidential programs and information from competitors.

The policy cannot be considered as a policy against marriage. Neither does the policy restrict an employee’s right from marrying anyone of his or her own choosing nor his or her personal prerogative. However, an employee’s personal decision does not prevent an employer from exercising management prerogative to ensure maximum profit and business success.

While it is true that the heart has reasons of its own which reason does not know (Chua-Qua v. Clave G.R. No. 49549, Aug. 30, 1990), the blossoming romance and union of employees may be barred in the employer’s exercise of management prerogative for as long as there exists a legitimate business concern.

This article is for informational and educational purposes only. It is not offered as and does not constitute legal advice or legal opinion.

 

Zyra G. Montefolca is an Associate of the Davao Branch of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

zgmontefolca@accralaw.com

Johnson’s UK virus gamble sparks fear, unease as cases grow

PEOPLE wearing protective face masks walk along a platform at King’s Cross Station, amid the coronavirus outbreak in London, Britain, July 12. — REUTERS

BORIS JOHNSON’s decision to ease remaining coronavirus restrictions in England is prompting growing fear and calls for caution, fueling worries that a surge in infections will strain hospitals and undermine Britain’s economic recovery.

Doctors are warning that the fresh toll of the pandemic will overburden an already beleaguered National Health Service (NHS) that’s struggling to clear a large backlog of other operations, while economists expect a dip in consumer confidence in the coming weeks due to the greater perceived threat to public safety.

With social distancing and the mandatory wearing of masks due to end on July 19, Mr. Johnson is pushing ahead with dropping virus measures even as a new wave of the pandemic takes hold. Daily hospital admissions are expected to hit 1,000-2,000 per day at a peak in August and there are expected to be as many as 200 daily deaths, according to modeling by the UK’s Scientific Advisory Group for Emergencies (SAGE).

Announcing the decision on Monday, Mr. Johnson urged caution, appealing to the public to wear masks in crowded indoor spaces and on buses and trains. He said that while the general instruction to work from home would end, “we don’t expect that the whole country will return to their desks as one from Monday.” He added that businesses should plan for a “gradual return to work over the summer.”

The question is whether Mr. Johnson’s move is too much of a gamble: Though the nation’s vaccination roll out has significantly weakened the connection between rising virus cases and hospitalizations and deaths, a resurgent pandemic would mean greater pressure on the NHS and added uncertainty for businesses.

Doctors’ Association UK (DAUK), a non-profit organization, said an increase in coronavirus cases would be a “disaster” for hospitals because the NHS is already facing an unprecedented workload, with many staff self-isolating. A surge in cases will mean more disruptions to services and delays to routine treatments, DAUK said.

“The unfolding disaster which awaits us in autumn and winter is the biggest public health experiment ever seen,” said Elizabeth Toberty, a general practitioner and spokesperson for DAUK. “The government’s strategy for opening up is completely lacking in logic and stands to put both patients and public services at risk.”

A survey of 2,500 doctors by the British Medical Association found that 90% wanted masks to continue to be mandatory on public transport, and 78% wanted them to continue to be worn in shops.

Not making masks mandatory will “see a sustained and even steeper rise in infection rates across the summer,” said Chaand Nagpaul, BMA council chair. Johnson’s easing of restrictions will “mean more patients on waiting lists will suffer and wait longer for treatment,” he said.

ECONOMIC HEADWINDS
A growth in coronavirus cases is also likely to carry an economic cost. While households have begun to spend savings accumulated during lockdowns, consumer confidence is due to take a hit in the near-term as infections rise, said Suren Thiru, head of economics at the British Chambers of Commerce. “That can be quite a drag on the recovery,” Thiru said. “There’s no doubt headwinds to the economy have increased.”

Defending the decision on Monday, England’s Chief Medical Officer Chris Whitty said an “exit wave” of infections was inevitable, but delaying lifting the restrictions would not make much difference to case levels. Mr. Johnson said July 19 was “as good a time as any” to ease the rules.

News of restrictions ending was welcomed by England’s hospitality sector, which has had to operate at reduced capacity and with some venues closed due to virus measures. As part of the easing, nightclubs and other venues hosting large crowds should ask customers to show the NHS “Covid pass” as proof of vaccination, a recent negative test or natural immunity, as a “matter of social responsibility,” Mr. Johnson said.

However, activity is likely to remain subdued due to fragile confidence among customers, said Kate Nicholls, chief executive officer of UK Hospitality, a lobby group.

“It’s clear we’re not out of the woods yet,” she said. “We don’t really know how quickly demand will bounce back.”— Bloomberg

Japan warns of crisis over Taiwan, growing risks from US-China rivalry

XANDREASWORK-UNSPLASH

TOKYO — Growing military tensions around Taiwan as well as economic and technological rivalry between China and the United States threaten peace and stability in East Asia as the regional power balance shifts in Beijing’s favor, Japan said in its annual defense white paper.

“It is necessary that we pay close attention to the situation with a sense of crisis more than ever,” the paper said in a new section on Taiwan. “In particular, competition in technological fields is likely to become even more intense,” it said about the US-China tussle.

The defense review, which was approved by Prime Minister Yoshihide Suga’s government on Tuesday, points to China as Japan’s main national security concern. Beijing’s recent uptick in military activity around Taiwan has Tokyo worried since the island lies close to the Okinawa chain at the western end of the Japanese archipelago. Chinese President Xi Jinping this month pledged to complete the “reunification” with Taiwan and in June criticized the United States as a “risk creator” after it sent a warship through the Taiwan Straits separating the island from the mainland.

Japan’s deputy prime minister and finance minister, Taro Aso, this month in a speech reported by Japanese media said Japan should join forces with the United States to defend Taiwan from any invasion. Mr. Aso later said any contingency over Taiwan should be resolved through dialogue when asked about the remarks, which drew a rebuke from Beijing.

As the military rivalry between the United States and China deepens, their economic competition is fueling a race to take the lead in key technologies, such as semiconductors, artificial intelligence and quantum computing.

The emergence of the rival technology camps poses a challenge for Japan because its economy relies as much on business ties with China as it does with the United States. Japan will also have to spend heavily to keep up with government funding for technology development in the United States, China and Europe.

US Senate lawmakers recently passed the Innovation and Competition Act of 2021, which authorizes $190 billion spending on technology including $54 billion to increase chip production. House of Representative lawmakers are debating a separate proposal that also promises generous funding, the “Ensuring American Global Leadership and Engagement Act,” or EAGLE Act.

The Japanese annual security review for the first time also includes a section on threats posed by climate change, which it says will increase competition for land and resources, and may trigger mass movement of climate refugees. An increase in disasters linked to global warming could also stretch military capabilities, it adds, while Arctic Sea ice melting could lead to the militarization of northern waters. — Reuters

British police seize $408 M worth of cryptocurrency

LONDON — British police have seized record hauls of cryptocurrency totaling 294 million pounds ($408 million) as part of an investigation into money laundering after organized crime groups moved into cryptocurrencies to wash their dirty money.

London police said on Tuesday they had seized 180 million pounds of an undisclosed cryptocurrency less than three weeks after making a 114-million-pound haul on June 24 as part of a money laundering investigation.

“While cash still remains king in the criminal word, as digital platforms develop, we’re increasingly seeing organized criminals using cryptocurrency to launder their dirty money,” said Metropolitan Police Deputy Assistant Commissioner Graham McNulty.

A 39-year-old woman was arrested on suspicion of money laundering after the first haul was discovered and has been interviewed under caution over the 180-million-pound discovery.

“Today’s seizure is another significant landmark in this investigation which will continue for months to come as we hone in on those at the center of this suspected money laundering operation,” said Detective Constable Joe Ryan.

As cryptocurrencies are largely anonymous, convenient and global in nature, some of the world’s biggest criminal groups have bet big on them as a way to launder money and stay one step ahead of the police, tax and security forces. — Reuters

More than 900,000 people in France rush for COVID vaccine as tougher measures near

REUTERS

PARIS — More than 900,000 people in France rushed to set up appointments to get vaccinated on Monday night after the president warned that people would see curbs imposed on them if they did not have a health pass that covered a vaccine or negative COVID test.

Unveiling sweeping measures to combat a surge in infections, Emmanuel Macron said vaccination would not be compulsory for the general public for now but stressed that restrictions would focus on those who are not vaccinated.

The president said health workers had to get vaccinated by Sept. 15 or face consequences.

Stanislas Niox-Chateau, who heads Doctolib, one of the country’s biggest online websites used to book vaccine appointments, told RMC radio there were record numbers seeking vaccines after the president’s announcement.

“There were 7.5 million connections on Doctolib in a few minutes. More than 900,000 French people made their vaccination appointment yesterday, which is twice the last record which dated from May 11,” Mr. Niox-Chateau said.

Mr. Macron said on Monday that a health pass required to attend large-scale events would now be used much more widely, including to enter restaurants, cinemas and theatres.

It will also be required to board long-distance trains and planes from the beginning of August, giving a further incentive for people to get the shot as the summer holiday season kicks in.

A slowdown in vaccination rates and a sharp upturn in new infections due to the highly contagious, now dominant, Delta variant, have forced the government to rethink its strategy. — Reuters

China’s export growth quickens as global vaccinations, easing lockdowns lift demand

BEIJING – China’s exports grew much faster than expected in June, as solid global demand led by easing lockdown measures and vaccination drives worldwide eclipsed virus outbreaks and port delays.

But overall trade growth in the world’s second-biggest economy may slow in the second half of 2021, a customs official warned on Tuesday, partly reflecting the COVID-19 pandemic uncertainties as the Delta virus variant wreaks havoc in some countries.

Overall imports also beat expectations, though the pace of gains eased from May, with the values boosted by high raw material prices, customs data showed.

Thanks to Beijing’s efforts in largely containing the pandemic earlier than its trading partners, the world’s biggest exporter has managed a solid economic revival from the coronavirus-induced slump in the first few months of 2020.

Exports in dollar terms rose 32.2% in June from a year earlier, compared with 27.9% growth in May. The analysts polled by Reuters had forecasted a 23.1% increase.

“Exports surprised on the upside in June, shrugging off the impact of the temporary Shenzhen port closure and other supply chain bottlenecks,” said Louis Kuijs, head of Asia economics at Oxford Economics.

“The headline US$ numbers suggest that in real, sequential terms shipments held up in June, after having moderated earlier on from the record levels of end-2020.”

China’s trade performance has seen some pressure in recent months, mainly due to a global semiconductor shortage, logistics bottlenecks, and higher raw material and freight costs.

All the same, the global easings in COVID-19 lockdown measures and vaccination drives appeared to underpin a strong uptick in worldwide demand for Chinese goods.

Germany, for example, which was at first sluggish in its vaccination drive, said this month it had caught up with the United States in terms of the proportion of the population having had one shot of COVID-19 vaccine. Close to half of Americans are now fully vaccinated, while elsewhere in Europe the rate has also increased recently.

China’s strong shipment numbers last month underlined some solid factory surveys overseas. A measure of U.S. factory activity climbed to a record high in June, while Euro zone business growth accelerated at its fastest pace in 15 years.

The data also showed imports increased 36.7% year-on-year last month, beating a 30.0% forecast but slowing from a 51.1% gain in May, which was the highest growth rate in a decade.

China’s crude oil imports in the first half fell 3% in their first contraction for the period since 2013, as an import quota shortage and rising global prices curbed buying, but imports of soybeans, natural gas and iron ore rose.

Asian stock markets, partly buffeted over recent weeks by concerns over the spreading Delta virus variant and easing growth rates in China, extended their gains after the trade data and were headed for the best session in more than two weeks.

China’s yuan also rose to a near one-week high against the dollar as the data tempered worries over softening GDP growth. On Friday, the People’s Bank of China said it would cut the amount of cash that banks must hold as reserves to support the economy, especially as smaller firms were unable to pass on rising raw material costs.

 

PANDEMIC UNCERTAINTIES

China’s customs administration spokesperson Li Kuiwen said imported inflation risks were manageable, but cautioned that the country’s overall trade still faces uncertainties due to the global pandemic.

Li, speaking at a news conference in Beijing earlier in the day, said trade growth may slow in the second half of 2021, mainly reflecting the statistical impact of the high growth rate.

“But overall we think China’s foreign trade in the second half still has hopes of achieving relatively fast growth,” he said.

China posted a trade surplus of $51.53 billion for last month, compared with the poll’s forecast for a $44.2 billion surplus and the $45.54 billion surplus in May.

Asia’s economic powerhouse has contained a sporadic coronavirus outbreak in one of its major export hubs in southern Guangdong province last month. However, exporters are grappling with higher raw material and freight costs and logistics bottlenecks.

Prices for commodities such as coal, steel, iron ore and copper have surged this year, fuelled by easing pandemic lockdowns in many countries and ample global liquidity.

“The pandemic-induced surge in retail sales in advanced economies has started to reverse recently as consumption patterns begin to normalise amid reopening,” said Julian Evans-Pritchard, senior China economist at Capital Economics.

“Once retailers in these countries have rebuilt their inventories, softer consumer demand will feed through into weaker foreign demand for Chinese exports.”

China’s trade surplus with the United States swelled to $32.58 billion in June, Reuters calculations based on customs data showed, up from the May figure of $31.78 billion.

Top officials from China and the United States started exchanges in June to address mutual concerns, while the Biden administration is conducting a review of trade policy between the world’s two biggest economies, ahead of the expiry of their Phase 1 deal at the end of 2021. – Reuters

FAA says new Boeing production problem found in undelivered 787 Dreamliners

Cropped screenshot from: http://www.boeing.com/commercial/787/

WASHINGTON/SEATTLE – The Federal Aviation Administration (FAA) said late on Monday that some undelivered Boeing 787 Dreamliners have a new manufacturing quality issue that the largest U.S. planemaker will fix before the planes will be delivered.

The FAA said the issue is “near the nose on certain 787 Dreamliners in the company’s inventory of undelivered airplanes. This issue was discovered as part of the ongoing system-wide inspection of Boeing’s 787 shimming processes required by the FAA.”

The FAA added that “although the issue poses no immediate threat to flight safety, Boeing has committed to fix these airplanes before resuming deliveries.” The air regulators added after a review of data it “will determine whether similar modifications should be made on 787s already in commercial service.”

Boeing declined to comment. Reuters first reported the new production issue to hit Boeing’s troubled 787 Dreamliner. The company has about 100 undelivered 787s in inventory.

Boeing suspended deliveries of the 787 in late May after the FAA raised concerns about its proposed inspection method, saying it was “waiting for additional data from Boeing before determining whether the company’s solution meets safety regulations.”

The FAA in May had issued two airworthiness directives to address production issues for in-service airplanes.

The U.S. planemaker’s 737 MAX and 787 have been afflicted by electrical and other issues since late last year, and it had only resumed deliveries of the 787s in March after a five-month hiatus – only to halt them again in May.

Two key U.S. lawmakers said in May they were seeking records from Boeing and the FAA on production issues involving the 737 MAX and 787 Dreamliner.

The FAA said in September it was investigating manufacturing flaws involving some 787 Dreamliners. Boeing said in August airlines operating its 787 Dreamliners removed eight jets from service as a result of two distinct manufacturing issues.

In September, Boeing said some 787 airplanes had shims that were not the proper size, and some airplanes had areas that did not meet skin-flatness specifications.

Last month at a conference, Boeing Chief Executive Dave Calhoun said the 787s were “performing beautifully.”

But he added “the FAA rightfully wants to know more about the analytics and process controls that we put in place, which are different than the ones that we had previously, so that we could be more perfect.”

Calhoun said he hoped the FAA’s review of Boeing’s approach was “measured in months and not longer than the calendar year.”

In February, Reuters reported Boeing was beginning painstaking repairs and forensic inspections to fix structural integrity flaws embedded deep inside at least 88 parked 787s.

The fuel-efficient 787 has been a hit with airlines, which have ordered nearly 1,900 of the advanced twin-aisle jet worth nearly $150 billion at list prices.

The FAA has been critical of some Boeing safety practices in recent years and imposed a $6.6 million fine on Boeing in February for failing to comply with a 2015 safety agreement.

The agency did not allow the Boeing 737 MAX to resume flights for nearly 20 months following two fatal crashes and only after it added significant safeguards to a key system.

Last month, Reuters reported the FAA told Boeing in May its planned 777X was not yet ready for a significant certification step and warned it “realistically” will not certify the airplane until mid- to late 2023. – Reuters

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