World Bank to offer $30B as Ukraine war threatens food security

May 23, 2022 | 12:01 am

BONN — The World Bank said it will make $30 billion available to help stem a food security crisis threatened by Russia’s war in Ukraine, which has cut off most grain exports from the two countries.

The total will include $12 billion in new projects and over $18-billion funds from existing food and nutrition-related projects that have been approved but have not yet been disbursed, the bank said.

“Food price increases are having devastating effects on the poorest and most vulnerable,” World Bank Group President David Malpass said in a statement. “To inform and stabilize markets, it is critical that countries make clear statements now of future output increases in response to Russia’s invasion of Ukraine.”

The bank said the new projects are expected to support agriculture, social protection to cushion the effects of higher food prices on the poor, and water and irrigation projects.

The majority of resources going to Africa and the Middle East, Eastern Europe and Central Asia, and South Asia. These areas are among the hardest hit by the impact of the war in Ukraine on grain supplies.

Countries such as Egypt are highly dependent on Ukrainian and Russian wheat and are scrambling for supplies as Russia has blockaded Ukraine’s agricultural exports from Black Sea ports and has imposed domestic export restrictions.

The World Bank’s plans were the largest component of a US Treasury Department report summarizing food security action plans from international financial institutions.

The European Bank for Reconstruction and Development plans to make €500 million available for food security and trade finance for agricultural and food products, out of a €2-billion package for Ukraine and neighboring countries affected by the war, the Treasury report said.

Ukraine would get €200 million and neighboring countries would get €300 million. The International Monetary Fund will provide financing support through its normal channels, which are limited by countries’ shareholdings and whether their debt is deemed sustainable. — Reuters

Caution to prevail as market awaits policy plans

May 23, 2022 | 12:01 am

STOCKS could move sideways this week as investors wait for the new administration to announce its economic managers and fiscal policy plans and following the Philippine central bank’s first rate hike since 2018.

The benchmark Philippine Stock Exchange index (PSEi) climbed by 86.28 points or 1.29% to close at 6,746.33 on Friday, while the broader all shares index improved by 45.46 points or 1.27% to end the week at 3,613.24.

Week on week, the PSEi gained by 367.16 points from its close of 6,379.17 on May 13.

For this week, analysts said the market could continue to move sideways with a downward bias amid the transition period for the incoming administration.

“We expect the local market to move sideways with a negative bias as investors continue to wait for additional details on the incoming administration’s economic team and fiscal agenda,” RCBC Securities, Inc. Head of Research Erwin Rommel C. Fuentes said in an e-mail.

“In view of the transition phase before the new administration takes office on June 30, the financial markets and general public are still waiting for additional details on the new administration’s Economic Team or cabinet members,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail.

Mr. Ricafort added that the market is waiting for the new administration’s plans, especially about fiscal policy and debt management as the economy recovers from the impact of the coronavirus pandemic.

After his landslide presidential election win, Ferdinand “Bongbong” R. Marcos, Jr. now faces soaring inflation and limited revenue to achieve his ambitious infrastructure goals, Bloomberg reported.

Several names and figures have been floated as potential appointees to the new economic team, though no official announcements have been made.

What’s certain is the gravity of economic challenges ahead, even in the wake of a better-than-expected first-quarter gross domestic product surprise. While policy makers just weeks ago sounded a more confident tone on reining in price growth, inflation has worsened worldwide, the Philippines included.

To keep the country’s post-COVID economic recovery on track, the incoming Cabinet will need to manage inflation and the current account deficit, among other challenges.

RCBC Securities’ Mr. Fuentes added that trading may be subdued following the central bank’s decision to raise borrowing costs last week, with analysts expecting further increases this year.

The Bangko Sentral ng Pilipinas on Thursday raised benchmark interest rates from record lows, the first hike since 2018, to combat rising inflation.

For the coming week, RCBC’s Mr. Ricafort placed the PSEi’s next immediate support from 6,530 to 6,570 and resistance levels between 6,800 and 6,900. — Luisa Maria Jacinta C. Jocson with Bloomberg

Letran beats Mapua to retain NCAA crown

May 23, 2022 | 12:01 am

By Joey Villar

THERE was no way Rhenz Abando would sit out the game that he had long dreamed of. That is why he made sure the left ankle he tweaked in Game One a week ago would heal in time for this one glorious moment.

And the high-flying Mr. Abando made every second count as he dished out a spectacular performance to power Letran to a 75-65 victory over a gutsy Mapua and a perfect season in the National Collegiate Athletic Association (NCAA) Season 97 at the Filoil Flying V Arena on Sunday.

The University of Santo Tomas (UST) transferee was nothing less than electric as he powered his way to 14 points, 13 rebounds, two blocks and an assist that completed a two-game series sweep over a Mapua team that was hoping to end a 31-year title drought.

Instead, it was the Knights who basked in glory as they copped their second straight championship and 19^th overall, or just three short of the league-high 22 titles by the proud San Beda Lions.

Letran achieved the milestone with perfection as they won all their 12 games including nine in the elimination round in this pandemic-shortened season.

But Mr. Abando almost missed this one as he was a game-time call coming into Game Two as there was no word if his sprained ankle he sustained late in the third quarter of their 68-63 win in the opener last week.

Everyone knows though that Abando would let anything stop him from winning his first collegiate crown.

“This is special for me,” said Mr. Abando, who fell short in his quest of a title after his UST Tigers lost to the Ateneo Eagles in the UAAP finals years back.

The search is over now for Mr. Abando.

Mr. Abando made it a double celebration after he was awarded the Rookie MVP plum before the game.

He was the fourth in the league to snare both plums next to Gabby Espinas of Philippine Christian University, Sam Ekwe of San Beda and Allwell Oraeme of Mapua.

Mr. Abando was also the first from Letran to win the highest individual honor since Raymond Almazan achieved the feat nine years ago.

With the exception of the late fight back by Mapua, Letran dominated the game from the onset and never really put the former in a position to steal the game just like in Game One.

Jeo Ambohot was later named Finals MVP.

The whole season though belonged to Mr. Abando.

The scores:

Letran 75 – Abando 14, Ambohot 13, Sangalang 11, Caralipio 9, Javillonar 8, Reyson 7, Yu 6, Paraiso 3, Mina 3, Olivario 1, Fajarito 0.

Mapua 65 – Hernandez 14, Nocum 14, Lacap 12, Gamboa 10, Pido 7, Bonifacio 6, Mercado 2, Agustin 0, Asuncion 0, Garcia 0.

Quarterscores: 19-8; 39-23; 58-48; 75-65

Ford Philippines rolls out deals on Everest and Ranger

May 23, 2022 | 12:01 am

VELO_DASH_image6 — PHOTO FROM FORD PHILIPPINES

FORD PHILIPPINES holds a promo on the Ford Everest and Ford Ranger this May.

A new financing offer for the Ford Everest makes the Everest Sport 4×2 AT available for a low monthly of P19,111. Meanwhile, customers getting a Ford Ranger can avail of a P98,000 all-in low down payment for the 2.2L XLS 4×2 MT variant, and the Ranger 2.0L Wildtrak 4×2 MT goes for zero percent interest for up to 36 months, available for the Ranger 2.2L XLS 4×2 MT.

Three years of the Ford Scheduled Service Plan (SSP) is also bundled with a purchase of the 2.0L Wildtrak 4×2 AT or MT variant. Ford SSP is a prepaid plan that covers the maintenance of Ford vehicles, including parts and labor. It is performed by Ford-trained technicians using genuine Ford parts.

“With our wide array of deals, we continue to enhance the overall purchase and ownership experience for our customers. This month, they can continue to enjoy exciting offers such as all-in low down payment and 0% interest financing plans, as well as low monthly fees and free service packages for our top-selling vehicles,” said Ford Philippines Managing Director Mike Breen.

All deals are available until May 31, 2022. For more information, visit www.ford.com.ph/shopping/latest-offer/ or any Ford dealership.

Armageddon Time director says seeds of modern tension stem from Reagan-era racism

May 23, 2022 | 12:01 am

731098e201fb8b9edb5bd166b5be8e3a1d0104c4 — Anthony Hopkins and Banks Repeta in a scene from Armageddon Time.

CANNES, France — American film director James Gray, debuting his movie Armageddon Time at the Cannes Film Festival, lambasted the Ronald Reagan-era racism that the film deals with, saying on Friday it set the stage for current social tensions.

“I can’t say that it caused what is going on today that scares me, but there were the seeds that were planted,” Mr. Gray told Reuters in an interview.

Mr. Gray’s coming-of-age film explores issues of race and privilege in American society, with a star-studded cast including Anne Hathaway, Anthony Hopkins, and Jeremy Strong. It debuted at the world’s biggest film festival on Thursday.

The film is one of 21 entries vying for the French festival’s top prize, the Palme d’Or.

Set in the 1980s, the movie takes its title from a quote from former US President Reagan, who warned that “we” may be the generation that experiences Armageddon.

Reagan had kicked off his 1980 presidential campaign in Philadelphia, Mississippi, where in 1964 three prominent civil rights workers had been murdered by the Ku Klux Klan — a deliberate message, according to Mr. Gray.

“Ronald Reagan knew what signals he was sending, particularly to white southerners, and I have not forgotten that — it’s in my head and I wanted to make a statement about that,” said Mr. Gray.

Mr. Gray’s film, loosely based on his life, is told through the character of young Paul Graff, who is white and played by Banks Repeta. It traces his friendship with Johnny, who is Black and played by Jaylin Webb.

The boys have high ambitions — but run up against rigid social structures.

“Trying to deal with this psychologically I tried to understand, I tried to get in his mindset and really understand what he went through. And my parents helped me out, because they’re really familiar with that feeling,” said Webb.

Bonds — and tensions — between generations is another theme, with Mr. Hopkins playing a central role as Graff’s grandfather.

“He was wise,” said Repeta. “We danced off set, which was enjoyable, and he was fun — he didn’t make anything too serious.” — Reuters

How does the Philippines fare in climate change resilience in business?

May 23, 2022 | 12:00 am

The Philippines ranked 85^th out of 180 countries* in citizenship consultant Henley & Partners’ Investment Migration Climate Resilience Index that assesses the countries’ climate change resilience. In partnership with the Deep Knowledge Analytics, the index was geared toward global investors proactively looking where to build future-ready, climate-resilient portfolios. To further help investors decrease their exposure to high climate change risk, the countries in the index were grouped into three resilience bands — higher, medium, and lower resilience. With a climate resilience score of 33.2 (out of 100), the Philippines was classified into “lower resilience,” which means it is more at risk from extreme environmental events such as forest ﬁres, hurricanes, heat waves, floods, droughts, and storms. Infrastructure will be both weaker and more exposed, and disaster preparedness and response to these extreme events will be slower.

How PSEi member stocks performed — May 20, 2022

May 23, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Friday, May 20, 2022.

Bam Adebayo shines as Heat hold off Celtics in Game 3

May 22, 2022 | 8:04 pm

BAM Adebayo recorded 31 points, 10 rebounds, six assists and four steals to lead the Miami Heat to a 109-103 victory over the host Boston Celtics on Saturday night in Game 3 of the Eastern Conference finals.

P.J. Tucker contributed 17 points and seven rebounds and Max Strus scored 16 points as the Heat took a 2-1 lead in the best-of-seven series.

Miami prevailed despite Jimmy Butler missing the second half due to right knee inflammation. Butler scored eight points in 20 minutes.

Jaylen Brown set a personal playoff high with 40 points and also collected nine rebounds for the Celtics, who committed 24 turnovers. Al Horford added 20 points and 14 rebounds.

Game 4 is Monday night in Boston.

Kyle Lowry returned from a hamstring injury for the Heat and recorded 11 points, six assists and four steals. Miami had 19 steals overall.

Marcus Smart had 16 points and seven assists for Boston despite briefly leaving the game in the third quarter with a sprained right ankle. He returned just over four minutes later.

Jayson Tatum had just 10 points on 3-of-14 shooting and committed six turnovers. He left with a right shoulder injury in the fourth quarter but returned less than two minutes later.

The Celtics played without Robert Williams III (left knee).

Miami led by 13 with 6:30 left before Boston responded with 12 consecutive points. Brown scored 10 of them, including a 3-pointer that cut the Heat’s lead to 93-92 with 2:40 to play. Miami suddenly reawakened as Strus drained a 3-pointer, Adebayo hit a jumper and Tucker made two free throws to make it 100-92 with 1:07 left.

Boston was unable to get closer than six the rest of the way. The Heat shot 46.7% from the field, including 11 of 31 from 3-point range. Miami committed nine turnovers.

The Celtics made 48.6% of their attempts and were 12 of 32 from behind the arc.

The Heat led by 15 when Butler was ruled out — Victor Oladipo started the second half in his place — and still led by that margin (87-72) when the third quarter concluded.

Adebayo hit another jumper 41 seconds into the fourth before Boston rattled off eight straight points to move within nine with 8:53 left. He later scored on a dunk with 7:16 left to get the Miami lead back into double digits and Tucker added a basket 46 seconds later to make it 93-80.

Adebayo scored 12 first-quarter points as Miami sprinted out to a 39-18 advantage. The Heat led 62-47 at the break. — Reuters

PSG’s Di Maria to leave the French champions at season’s end

May 22, 2022 | 8:04 pm

PARIS Saint-Germain (PSG) winger Angel Di Maria will leave the French club when his contract expires at the end of the season, the Ligue 1 champions said.

The 34-year-old moved to PSG from Manchester United in 2015 and has been a key attacking player over the years, winning five league titles and claiming 18 trophies in all.

The arrival of Lionel Messi last summer, however, has limited Di Maria’s game time, with the former Real Madrid attacker making just 18 league starts this season.

“Angel Di Maria has left a permanent mark on the history of the club,” said club president Nasser Al-Khelaifi. “He will remain in the memories of the supporters as someone with an irreproachable attitude, who has defended our colors with faultless commitment.”

Di Maria’s 111 assists is a club record, while he has scored 91 goals in 294 appearances.

The forward, who is reportedly close to signing for Serie A side Juventus, will play his last game for PSG when they host Metz in the league on Saturday. — Reuters

Jimmy Butler (knee) ruled out for remainder of G3

May 22, 2022 | 8:03 pm

MIAMI Heat star Jimmy Butler was ruled out for the second half of Game 3 of the Eastern Conference finals against the Boston Celtics due to right knee inflammation.

Butler scored eight points in 20 first-half minutes but Victor Oladipo started in his place in the third quarter. The Heat subsequently announced Butler was done for the night.

Just 63 seconds into the third quarter, Boston Celtics guard Marcus Smart was helped off the court after sustaining a sprained right ankle.

Smart was injured while competing for a rebound with Miami’s Kyle Lowry. Smart’s ankle rolled on the floor and Lowry landed on it. Smart grabbed for the ankle and screamed loudly.

Smart had seven points, three assists and two rebounds before heading back for treatment. He returned to the bench area with 7:01 left in the third quarter and reentered the contest nine seconds later.

Boston forward Jayson Tatum sustained an apparent right shoulder injury with 5:33 left in the fourth quarter. Tatum went to the locker room for evaluation.

Tatum was injured while Oladipo was stealing the ball. He remained on the court as play continued and the Celtics eventually called timeout with 5:18 left. He ended up returning to the game.

Miami led 62-47 at the break. The best-of-seven series is tied at one game apiece. — Reuters

Shooting treys

May 22, 2022 | 8:02 pm

It doesn’t take a genius to know when exactly the Mavericks turned victory to defeat in Game Two of the Western Conference finals. Even as they still led by two points heading into the payoff period, they gave up all the momentum they hitherto built with erratic play after the half time break. Given their predisposition to run up the score, their inability to put up no more than 13 markers in the third quarter effectively set up the loss. It wasn’t simply that they failed to attack the paint; as was their wont, they took twice as many shots from beyond the arc as from within. It was that they failed to make the shots count, going just two of 13 from three-point range after making 15 of 27 such attempts in the first half.

Significantly, Mavericks head coach Jason Kidd made a big to-do over the shot selection in the penultimate canto. “If you make threes, that’s great. But you just have to understand, if you miss four in a row, you can’t take the fifth. [Because then,] you’ve got to make it,” he argued. “That just puts too much stress on yourself and on your team because, if you’re not getting stops on the other end, it turns into a blowout.” And he’s right. He’s in the Naismith Hall of Fame for a reason, and he clearly lamented his charges’ lack of feel for the need of the moment.

Perhaps Kidd brought some of the problem on the Mavericks. After all, he did keep encouraging the taking of treys throughout Game One, and en route to an atrocious 11-of-48 clip that largely contributed to a blowout defeat. And when the Warriors were making a run in the third quarter of Game Two, he made the tactical decision not to call a time out to stem the bleeding. Granted, it reflected the level of trust he had in top dog Luka Dončić and company. That said, his subsequent criticism, while not without merit, seemed out of place.

In any case, it’s clear even to casual observers that the Mavericks need to keep doing what has precisely enabled them to go deep in the playoffs — which is to say they need to keep taking threes within the flow of the offense. As postseason revelation Jalen Brunson noted, “We we’re getting great looks… So I think as long as we’re open and shooting the correct shots, making the extra pass, doing the things that we do, we have confidence in everybody, I have confidence in everybody to knock it down.”

Truth to tell, there’s enough cause to contend that the Mavericks lost on the other end of the floor. For the most part, they were like a sieve in the second half of Game Two. And, nope, they cannot engage in a shootout; the Warriors simply have too many weapons, beginning with two-time Most Valuable Player awardee Stephen Curry, to be given opportunities to fire away without any semblance of coverage. Kidd tied it to the capacity of the blue and white to stay engaged when shots are falling. “We play defense when we play offense, and we play no defense when we can’t score.”

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.

PEZA warns BIR on-site work inspections could alarm investors

May 22, 2022 | 7:41 pm

THE PLAN to inspect economic zone locators for compliance with the government’s on-site work order could inject an element of uncertainty among investors in the Information Technology-Business Process Management (IT-BPM) industry, the Philippine Economic Zone Authority (PEZA) said.

“The Bureau of Internal Revenue (BIR) is now performing surprise inspections of IT-BPMs which again created uncertainty (and) frustration, especially that we’re still awaiting the response of the Fiscal Incentives Review Board (FIRB) on PEZA’s appeal for a status quo on the work-from-home (WFH) arrangements,” PEZA Director-General Charito B. Plaza told BusinessWorld in a mobile phone message.

The government has directed IT-BPMs to resume working onsite if they are Registered Business Enterprises (RBEs) based in economic zones. The industry had been allowed to adopt work-from-home arrangements as a safety measure during the pandemic, but the recent decline in coronavirus cases has caused economic managers to shift their priorities to reopening the economy, in order to support businesses like transportation, restaurants, and retail which depend on worker foot traffic.

Under tax law, RBEs are required to perform their work in economic zones if they are to continue to enjoy tax incentives. FIRB Chairman and Finance Secretary Carlos G. Dominguez III has said that RBEs have the option to continue with work-from-home arrangements, but must surrender their incentives.

“What is needed and are being asked by our investors now, is our government’s sensitivity, empathy, understanding, assistance and support while they’re still struggling for survival,” Ms. Plaza added.

The BIR said it has formed a task force to ensure that RBEs in the industry are complying with the on-site work rules.

BIR Deputy Commissioner Arnel SD. Guballa said mission orders have been issued for site inspections.

The rule making tax incentives dependent on working in economic zones is contained in Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

According to Ms. Plaza, PEZA is authorized to grant work-from-home requests and its regular policy is to allow 30% of the IT-BPM workforce to work remotely.

“Now that the FIRB wants everybody to go back on-site work, PEZA is simply going back also to our regular policy of 30% WFH and see to it that RBEs also meet the 70% export sales allowance to continue enjoying PEZAs incentives,” Ms. Plaza said.

“Besides, the IT-BPMs are earning (more) revenue and have increased their employment under the WFH arrangement so, the government is not losing but gaining under the hybrid scheme,” she added.

In April, PEZA announced that it is allowing 30% WFH and 70% on-site work for until Sept. 12, which is when the state of calamity expires after it was declared to help contain the pandemic.

RBEs and registered IT-BPM firms can avail of this arrangement by requesting a letter of authority (LoA) from PEZA.

The FIRB previously allowed up to 90% WFH for registered IT-BPM companies while still enjoying tax incentives under FIRB Resolution 19-21. However, the resolution expired on April 1.

The Information Technology and Business Process Association of the Philippines (IBPAP) has taken the position that the LoAs issued by PEZA is valid.

“The IBPAP stands by the validity of the LoAs issued by PEZA to our member companies, as well as the member companies of our six partner associations… We continue to count on their support to uphold the validity of the LoAs in order to achieve our jobs and revenue targets,” IBPAP President Jack Madrid said.

Mr. Madrid said the LoA is a legal measure that allows IT-BPMs to transition and set up their offices after two years of WFH arrangements.

“The LoA provides necessary relief to address the cost and competitiveness pressures that the IT-BPM industry has been under since the pandemic began. Moreover, it gives affected organizations more flexibility and runway time to transition and set up their offices for returning employees as they strengthen their immediate-term strategies amid continuing global shifts,” Mr. Madrid said.

Alliance of Call Center Workers Co-Convenor Emman D. David told BusinessWorld via messenger chat that the BIR inspections run counter to previous FIRB pronouncements.

“The move of the BIR to enforce the FIRB return-to-office order by conducting inspections of BPM (Business Process Management) worksites is in contradiction to the pronouncement of FIRB co-chair Ramon M. Lopez that 30% off-site work is allowed for PEZA-registered companies,” Mr. David said.

“We also assert that based on the Special Economic Zone Act of 1995 implementing rules and regulations (IRR) Part I Rule I Section 2.f.2, 100% work from home is actually allowed under existing laws. Nevertheless, we urge the next Congress to explicitly codify this into law,” he added. — Revin Mikhael D. Ochave