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Cavitex Infra hopes to meet original timeline for new segments of C5 Link Expressway

CAVITEX INFRASTRUCTURE Corp. (CIC) said Tuesday that it hopes to meet its original timeline for building new segments of the Manila-Cavite Expressway (Cavitex) C5 Link Expressway, despite disruptions caused by the pandemic.

“We are doubling our efforts on the construction of Segment 2 and Segment 3A-2 at the beginning of 2021,” Roberto V. Bontia, CIC president and general manager, said at an online briefing.

He added: “With the challenges brought about by the pandemic, we will seek to stick to the timeline as close as we can and be able to open the new segments in Cavitex C5 Link next year.”

The company said it is working with its joint venture partner, the Philippine Reclamation Authority, to implement a traffic management plan, as “there will definitely be an effect on the passage of motorists in the construction areas.”

CIC said Segment 2 of C5 Link Expressway is a 2×3-lane expressway from Cavitex (R1) Expressway to a proposed interchange at Sucat while Segment 3A-2, a subsection of Segment 3, is a 1.6-kilometer, 2×3-lane expressway from Merville to RSG (Airport View) Subdivision in Parañaque.

The company plans to finish Segment 2 and Segment 3A-2 in 2022.

The P15-billion project, upon completion, is projected to serve 50,000 cars and reduce travel time to Makati and Taguig from Parañaque, Las Piñas, and Cavite from one hour to about 10 minutes.

The company expects the project to play a major role in Metro Manila’s economic development.

“Moreover, CIC is set to conduct a heavy maintenance on Cavitex. Mobilization will start on Feb. 27, 2021 and will last for 60 days,” CIC also said.

CIC is a unit of Metro Pacific Tollways Corp. The latter’s parent, Metro Pacific Investments Corp., is one of three Philippine units of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

ERC eases financial eligibility rules for generation companies

THE Energy Regulatory Commission (ERC) said Tuesday that a recent resolution has eased the financial eligibility requirement for generation companies (GenCos), in a bid to encourage investment in the sector.

The resolution, posted on the commission’s website Monday, featured a reduction in the debt service capability ratio (DSCR) of GenCos holding certificates of compliance (CoCs) to 1.25 times from 1.5 times. If the GenCo’s financial or loan agreements require a higher DSCR, which is a measure of a project’s ability to generate cash flow to service debt, the higher value will serve as the minimum requirement.

“The minimum financial capability benchmark of 1.25x DSCR for GenCos is a level that could ensure that the operations will (generate sufficient funds) to pay off its financial obligations… this revision aspires to encourage investment in the generation sector which could lead to further competition,” ERC Commissioner-in-Charge Floresinda G. Baldo-Digal told BusinessWorld in a mobile message Tuesday.

Ms. Digal said the 1.25x ratio was “more in tune” with the requirements of financial institutions.

“The setting of 1.25x DSCR hopes to encourage efficiency in the performance of (a) generation facility and in managing its overall operation. More importantly, it ensures the sustainable operations of the generation facility for the delivery of continuous supply of electricity,” she added.

Ms. Digal said the old 1.5x minimum was a burden to GenCos, discouraging investment in the sector.

“The revision of the rule is timely since there were several changes in economic conditions since the promulgation of the Financial Guidelines as well as significant development in the electricity market,” she added.

In its resolution, the ERC said that it had conducted a study that showed only 32% of GenCos with issued CoCs were able to comply with the 1.5x requirement.

According to the commission, a GenCo which performs below the benchmark will need to submit a program to comply within 60 days of receiving a directive from the ERC. The GenCo will have one year to hit the ERC-prescribed benchmark, subject to fines of up to P50 million for non-compliance, as authorized by the amended Electric Power Industry Reform Act.

The ERC said that the Power Sector Assets & Liabilities Management Corp.; National Power Corp. (NPC); transferees or new owners of NPC generation assets; and entities that own generation facilities for internal consumption are exempt from complying with the updated financial capability standards.

The resolution was signed on Nov. 11, 2020, and posted on the ERC’s website on Monday. — Angelica Y. Yang

Safeguard power sector stability and consumers

Before the COVID-19 (coronavirus disease 2019) pandemic, the country’s grid system operator, National Grid Corporation of the Philippines (NGCP), reported a looming power shortage over the Luzon grid in the summer months of 2020. However, COVID-19 happened.

The lockdowns implemented to slow the spread of the virus sent severe shocks throughout the country’s economic sectors. As a result, the Department of Energy (DoE) later revealed that electricity consumption dropped by 30% in Luzon during the initial quarantine, effectively avoiding last year’s looming summer power shortage.

An unintentional effect of the deep economic slump brought about by the continuing quarantine is that it bought the country’s energy sector additional time to realign with the country’s shifting power demands.

However, while the anticipated shortages did not happen last year, the country’s energy security is even more critical as we must now save the country from economic collapse.

In terms of addressing the public health crisis, having a secure energy supply is essential for the implementation of the country’s vaccine plans. All inoculation venues must have power, and, most important, COVID-19 vaccines must be kept in specialized cold storage.

Moreover, to rebound from this deep economic slump, energy security must be assured. Critical infrastructures, businesses, and services must literally “keep the lights on,” and continue operating to deliver services to the public.

Now that the National Economic Development Authority (NEDA) and Metro Manila mayors have recommended the shift to a more relaxed modified general community quarantine (MGCQ) throughout the entire country, there will be increasing power demand as our economy moves towards full operation. Commercial and industrial areas such as malls, office buildings, and factories, will require uninterrupted power to ramp-up operations.

Compound this by the fact that we are now heavily reliant on digital technologies that need online connectivity. In the event of a major power outage, disruption of telecommunications and internet services, the already dire conditions of the people will further worsen. A stable energy sector is vital not only for e-commerce but also for distance learning, working from home, and the ongoing digitization of financial service institutions.

The country’s energy sector has taken steps to ensure that the National Capital Region, the country’s economic center, has sufficient power supply moving forward. This is crucial in this first quarter of the year, as the documented spike in household power consumption alone is expected to increase by up to 30%.

This calls attention to the recently concluded Competitive Selection Process (CSP) of Meralco wherein two subsidiary firms of conglomerate San Miguel Corp. (SMC) were awarded to supply 1,800 megawatts (MW) for a period of 20-years. The CSP is the mandatory bidding process for determining the lowest priced power supply from eligible power generation companies in compliance with the DoE and Energy Regulatory Commission (ERC) regulations. Given its size, this CSP bidding is critical to Meralco’s electricity consumers in the Luzon Grid.

According to published reports, Excellent Energy Resources, Inc., a natural gas-fired power plant, won 1,200 MW at P4.1462 per kilowatt hour (kWh) while the coal-fired power plant of Masinloc Power Partners Ltd. Co. was awarded 600 MW with its offer of P4.2605 per kWh. The Third-Party Bids and Awards Committee (TPBAC) said that this CSP was in full compliance with the approved Terms of Reference and all rules and regulations issued by the DoE. The next step will be for the winning bids to undergo post-qualification within seven days from the date of award.

Should any of the awarded bids fail in the post-qualification, two other offers submitted by Power Generation Corp., Atimonan One Energy, Inc. at P4.3321 per kWh, and GNPower Dinginin Ltd. Co. at P5.2500 per kWh were qualified as possible next best bids to be considered.

The first successful CSP conducted by Meralco in 2019 significantly lowered the average generation cost of previous years with total savings for consumers reported at P13.86 billion per year at a rate reduction of P0.41 per kWh.

Meralco has also reported that their rates are now at the lowest in three years, with their customers benefiting from a net rate reduction of P1.3870 per kWh, or a bill reduction of more than P277 for a household consuming 200 kWh owing to new power supply contracts following CSP rules.

It is indeed encouraging that the CSP has produced power supply agreements that have lowered the cost of electricity for consumers. This is a good example of how a well implemented regulation results in optimized benefits for all consumers.

We call on the DoE, the ERC, and Meralco to ensure the integrity of the CSP system. In as much as our country needs investments, we should only allow the right investors from the most credible companies who can fully comply with our bidding processes.

The stability of our power supply is essential to our country’s economic continuity and our ability to rebound from this health and economic crisis. We must always be vigilant against any attempt to undermine the country’s power security.

 

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

How China is remaking the world in its vision

This is an edited extract of an essay in the latest issue of Australian Foreign Affairs, “The March of Autocracy,” published on Feb. 22.

It is the year 2049. China is celebrating having reached its second centenary goal — to become a “prosperous, powerful, democratic, civilized and harmonious socialist modernized country” by the 100th anniversary of the people’s republic.

Its economy is three times the size of the United States’, as the International Monetary Fund predicted back in the 2010s. The US remains wealthy and powerful — it has functioning alliances in Europe — but its pacts with Asian allies have fallen into disrepair.

For decades, Hong Kong has been accepted as just another province of China. Few dare to criticize the ongoing human rights abuses there, or in Xinjiang and elsewhere, because of the extraterritorial application of China’s national security laws. Taiwan, if not annexed, is isolated, with no diplomatic partners.

The legacy of Xi Jinping, who led China for more than 30 years, monopolizes ideological discourse in China. His successors rule under his shadow.

Outside China, many of the third-wave democracies that transitioned in the second half of the 20th century have become far less liberal. Elections are held, but increasingly authoritarian governments have adopted many of Beijing’s technological and legal tools to manage markets and control politics. The internet is heavily censored.

Mistrust permeates every aspect of China’s relations with the West. International cooperation on climate change and the strong carbon-reduction commitments of the early 2020s have long been abandoned. The focus is on individual adaptation.

Australia remains a liberal democracy and a staunch defender of free markets and human rights. But these are no longer the default standards of global governance — they are minority positions associated mostly with Western traditions. No longer a top-20 economic or military power, Australia’s opportunities to make its mark internationally are few and far between.

This vision of a fragmented and decidedly less liberal international order is highly speculative, but also dispiritingly plausible.

It is unsettling to an Australian reader, not just because Australian foreign policy has been centered on a global set of rules and institutions since 1945, but because Australian identity is so enmeshed with the values of liberal democracy.

The 2017 Foreign Policy White Paper states that Canberra is “a determined advocate of liberal institutions, universal values and human rights,” in stark contrast to Beijing.

All nation states, especially rising powers, desire a favorable global environment in which they can acquire power, prosperity and prestige. The postwar system greatly aided China, and it would be incorrect to claim Beijing wants to dismantle it entirely.

Similarly, it would be disingenuous to overlook the many instances where the US and other liberal democracies have behaved inconsistently.

But the Chinese Communist Party (CCP), which leads an authoritarian state, sees the liberal values embedded in the present order as a threat to its rule. Unlike the US, which at times ignores or violates these principles, China needs many of them to be suppressed, even eliminated.

As China seeks to remake the international order, the challenge is to understand where and how Beijing’s efforts will undercut its liberal character, and to identify where it is possible to resist.

Rather than upend the existing international system, Beijing’s approach today is to co-opt, ignore and selectively exploit institutions.

Xi has said:

“… reforming and improving the current international system do not mean completely replacing it, but rather advancing it in a direction that is more just and reasonable.”

In late 2019, for instance, the World Trade Organization’s (WTO) appellate body ceased to function after the US — complaining about the organization’s soft stance on China — blocked the appointment of replacement judges.

In many ways, the WTO’s structure is the epitome of a liberal rules-based system: countries relinquish some sovereignty and are bound by judicial decisions in the interests of resolving trade disputes.

In response, China joined with the European Union, Australia, and other governments to set up a parallel stop-gap legal mechanism.

This was a reflection of the CCP’s nuanced relationship with the liberal international order. China needs a stable trading system and will agree to binding rules to preserve it. The odd trade dispute does not substantially threaten China’s ideological security.

In the future, Beijing should be expected to exert its influence on the current order. The challenge for states such as Australia is to identify when Beijing’s behavior exceeds influence and begins to erode the system’s liberal foundations.

China is already skillfully maneuvering within international institutions to guide their operations, press for reforms and promote the China model.

Chinese nationals run four of the 15 United Nations specialized agencies, including the Food and Agricultural Organization and the International Civil Aviation Organization.

Ironically, the democratic nature of international institutions benefits Beijing. Chinese representatives in a variety of forums, such as the World Health Assembly and committees of the UN General Assembly, muster coalitions of the Global South to ensure favorable votes on issues such as Taiwan’s (non)participation or to counter criticism of its repressive policies in Xinjiang.

China also elevates its government-organized NGOs, presenting an image of independence while drowning out the voices of independent civil society.

The China Society for Human Rights Studies, for example, has official consultative status at the United Nations as an NGO, but is co-located with Chinese government offices and staffed by Chinese government officials. It has vigorously prosecuted China’s human rights agenda.

The use of deft diplomacy and inducements to generate voting blocs is unsurprising. But China also seeks to change the system, diluting the liberal elements that threaten the China model and thus the CCP’s rule.

For instance, China has already succeeded in weakening the liberal character of international human rights. In 2017, it proposed its first-ever resolution to the UN Human Rights Council, headed: “The contribution of development to the enjoyment of all human rights.”

It prioritized economic development above civil and political rights, and put the primacy of the state above the rights of the individual. Despite objections and nay votes from Western members, the resolution passed. The subsequent report by the council’s advisory committee, a body of 18 experts supposed to maintain independence, referred mainly to Chinese party-state documents.

Chinese diplomats also block human rights resolutions at the UN Security Council, such as a February 2020 resolution on the plight of Myanmar’s ethnic Rohingya.

While the US has arguably been similarly obstructive on resolutions about Palestine, it is for the narrow purpose of protecting an ally, rather than the broader project of weakening the rights themselves.

China has even been able to marshal the international system to defend and commend its behavior in Xinjiang and Hong Kong.

In 2020, at the 44th session of the UN Human Rights Council, a joint statement signed by 27 countries, including Australia, expressed concern at arbitrary detention, widespread surveillance, and restrictions in Xinjiang and the national security legislation in Hong Kong.

A competing statement supporting the Hong Kong legislation received support from 53 states, only three of which are considered “free” by the non-governmental organization Freedom House.

By working within the system to rally a voting bloc, Beijing was able to compromise the world’s peak human rights body. Tactics that have been successful in watering down human rights are now being employed in areas where norms are still being established, such as internet governance.

The history of liberal internationalism is replete with contradictions. Some say that in recent decades it is Washington, not Beijing, that has damaged the order most.

So can China really do more damage to an order already on life support? Liberalism is not just facing an external challenge, but one from within.

The answer requires optimism about liberalism’s capacity to self-correct across the arc of history, and skepticism that illiberalism can do likewise. As much as Donald Trump belittled, criticized, and attacked America’s institutions, he also created the conditions for a course correction — Joe Biden’s victory.

The CCP is a well-resourced and well-organized political force. It has the potential to be far more effective than any iconoclastic but capricious populist in permanently weakening the liberal foundations of the global order. Much of China’s influence abroad is unavoidable. A rising power with the economic and military strength that China wields is unlikely to be deterred.

On this logic, optimism has no place. But it would also be mistaken to adopt a fatalistic approach. Instead, Australia and its partners must focus their efforts on those elements of the liberal order most worth preserving and most under threat.

The centenary of the people’s republic is still 28 years away.

 

Natasha Kassam is a Fellow at the ANU National Security College’s Futures Council at the  Australian National University. Darren Lim is a Senior politics lecturer at Australian National University.

The four basic truths of macroeconomics

I WAS RECENTLY INVITED on Clubhouse to lead a discussion of macroeconomics, and numerous listeners were skeptical of the value of my chosen field of study. So allow me a few more words in defense of macroeconomics as a useful and at least modestly scientific endeavor.

The first and most important thing to know about macroeconomics is that a strong negative shock to demand — a sudden decline, in other words — usually leads to a loss of output and employment. Nominal wages are sticky, for a complex mix of sociological reasons, and so employers do not always respond to lower demand with lower wages for workers. Instead they lay some people off, and that can lead to a recession.

That may sound pretty simple. But it is one of the most important discoveries in history. It was true in the Great Depression, in the disinflation of the 1970s and ‘80s, and in the financial crisis following 2008.

The second thing to know is that well-functioning central banks can offset such demand shocks to a considerable degree — or even prevent them from arising in the first place. The bank can engage in complex financial transactions or simply print more currency to stabilize nominal demand and restore some measure of order.

The third thing to know is that if central banks go crazy increasing the money supply, the result will be high price inflation. There is one exception to this, which was evident in 2008 and 2009, when the Fed paid interest on bank reserves: If central banks simultaneously act to decrease the velocity of money — that is, if they take measures to reduce borrowing and lending — then price inflation will be limited accordingly.

A fourth thing to know is that non-monetary shocks, if they are large enough, can also create recessions or depressions. Consider the oil price shock of 1973, the current pandemic, or bad harvests in earlier agrarian societies. Central banks can partially stabilize such shocks, but they cannot erase them.

I believe an overwhelming majority of macroeconomists would largely agree with these propositions, even if they might place the emphasis differently. And these four propositions are enough to elevate macroeconomics into the realm of the essential.

Things do get more controversial, though there is still a reasonable degree of consensus.

Consider the question of how large a federal budget deficit an advanced economy can run without courting a financial crisis. No one really knows. Nonetheless, there is agreement that high-return public investments will strengthen a country’s fiscal situation, even if financed by borrowing. Those returns will boost both output and tax revenue, at least in the medium term, and usually markets are capable of seeing those gains coming.

If economists disagree about the proper extent of fiscal policy, it is on the expected return of public investments. (Those further to the left tend to believe that high returns are fairly likely, those on the right that the government will choose investments poorly.) That is an important and very real disagreement — but it is about economic policy and the quality of government, not about macroeconomics per se. The underlying analysis of macro is consistent.

Once you get past those propositions and this disagreement, I am skeptical about a great deal of macroeconomics. I don’t know if the rate of price inflation should be 1.7% or 2%, and discussions of the matter read like mumbo-jumbo to me. I am fine with 2%, however, or for that matter 2.2%.

I don’t think macroeconomists know how to measure investment very well, especially when the relevant corporate assets are intangibles, as is often the case with tech companies, or if America has been in an “investment drought.” Nor are we good at predicting or even understanding movements in exchange rates or real interest rates or aggregate stock prices, three major areas of macroeconomics. I think you can learn something by listening to all sides of a debate on these matters, but at the end of the day it is better to stay agnostic. I also think measures of price inflation are almost useless over the long run, because a person today consumes a very different bundle of goods than one in, say, 1950.

Finally, allow me to add one more truth, though I recognize it is neither confirmed nor unanimously held: A growing population tends to be good for an economy, ceteris paribus, and a shrinking population bad.

Disparaging macroeconomics is an age-old pastime, and yes there is plenty we do not know or understand. But maybe the only thing worse than living with macroeconomics (or macroeconomists, though ask my wife) would be to try to live without it.

BLOOMBERG OPINION

Staying in control: The rights of data subjects

Since the promulgation of the Implementing Rules and Regulations for the Data Privacy Act (DPA) on Aug. 24, 2016, the National Privacy Commission (NPC) has always emphasized that one of the guiding principles of the DPA is the empowerment of individuals to have reasonable control over the flow of their personal data.

To address frequently recurring questions regarding the rights of data subjects under the DPA, the NPC issued Advisory No. 2021-01 on Jan. 29 this year. The Advisory now explicitly provides that Personal Information Controllers (PICs) are required to implement a clear, simple, straight-forward, and convenient procedure to allow data subjects to exercise their rights, including the use of request forms and measures to verify the identity of the requesting data subjects. PICs are also not allowed to charge any fee to fulfill the exercise of data subject rights, (except reasonable fees for requests for copies of personal information), and must comply with requests within a period not exceeding 30 working days.

The Advisory also clarifies that PICs may not retain personal data for the sole purpose of making it available for potential future requests for the right to access or data portability. Thus, once the purpose for which the data was obtained has been fulfilled, such data may no longer be retained. Where data subject rights are denied or limited, PICs must clearly and fully inform the data subject of the reason for the limitation or denial.

The Advisory also provided expanded guidelines on the exercise of specific data subject rights. Of significance are guidelines on:

• the right to be informed, where PICs must notify and furnish data subjects with the required information before their personal data is processed and where a privacy notice is required at all times in order for data subjects to be informed which is, however, not equivalent to consent;

• the right to object, where data subjects can object to the processing of personal data for direct marketing, profiling or where automated processing of the data is to be the sole basis for any decision that significantly affects the data subject, and which mandates PICs to cease the processing of personal data when a data subject objects or to inform the data subject if there are other grounds to continue processing;

• the right to access, where PICs may refuse to comply with repeated, identical, or similar requests for access when these have already been granted except in cases where a reasonable interval of time from the previous request or if the grant of the request would result in a disproportionate amount of effort or resources or may cause serious harm to the physical, mental, or emotional health of the data subject;

• the right to rectification, where in cases involving the correction of personal data, the PIC must ensure that the data subject has access to both the new and retracted information, and upon the request of the data subject, inform recipients or third parties of the said rectification;

• the right to erasure or blocking, where required substantial proof for the exercise of the right to erasure or blocking of personal information and the specific instances when such requests may be denied is outlined and where PICs are directed to grant the request for erasure or blocking if the request is based on unlawful processing, use for unauthorized purposes or violation of data subject rights,

• the right to data portability, where the processing must be based on consent or contract and the personal data is processed by electronic means and in a structured and commonly used format to enable data subjects to exercise the right and where PICs are directed to consider commonly used, machine-readable, interoperable, open formats such as XML, JSON, CSV, etc. for data portability requests; and,

• the right to damages which states that the NPC may award indemnity on the basis of applicable provisions of the New Civil Code.

While Filipinos have gradually become aware of their rights under the DPA, navigating and exercising these rights have resembled a tug-of-war between data subjects and personal information controllers and processors. Hopefully, NPC Advisory No. 2021-01 will provide sufficient guidance to ensure that data subjects are able to take hold of and effectively control their personal information.

The views and opinions expressed in this article are those of the author. This article is for general information and educational purposes, and not offered as, and does not constitute, legal advice or legal opinion.

 

Maria Isabel M. Llave is a Senior Associate of the Intellectual Property Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW)

mmllave@accralaw.com

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GLOBAL MARKETS | Commodities rally, stocks steady, yields off highs

MILAN/SINGAPORE – Optimism about the economic outlook pushed commodity prices to new highs on Tuesday, helping stocks steady as expectations of a dovish testimony by Federal Reserve Chairman Jerome Powell calmed down bond yields.

The MSCI world equity benchmark was flat near two week lows by 0919 GMT, helped by gains in commodity-heavy equity indexes in Asia and a rally in European travel stocks on the prospect of easing social restrictions.

British Prime Minister Boris Johnson set out a phased plan on Monday to end a COVID-19 lockdown in the world’s sixth largest economy.

World stocks had been weighed down in recent sessions by a rapid surge in global bond yields which fuelled expectations that central banks could eventually turn less accommodative in a bid to tame inflation. Tech stocks were among the hardest hit.

But the sell-off in the bond market eased after European Central Bank chief Christine Lagarde said on Monday the central bank was “closely monitoring” rising borrowing costs.

Investors now expect Fed’s Powell to be equally reassuring when he testifies before Congress at 1500 GMT.

“If there were already any expectations that Powell could try to calm down rates, then (Lagarde’s remarks) have just further cemented them,” said Giuseppe Sersale, strategist and fund manager at Anthilia in Milan.

Tech stocks and rate-sensitive sectors like utilities in Europe however fell, offsetting stronger travel and commodity stocks and pushing down the <STOXX 600> regional benchmark by 0.6%. In Asia, the rally in commodities lifted Australia’s S&P/ASX 200 0.9%, while tech-laden South Korea’s Kospi lost 0.3%. Japanese markets were shut for a public holiday.

Nasdaq futures were down 0.6% at three-week lows after high-growth stocks such as Apple, Microsoft and Tesla dragged the index down 2.5% on Monday, while S&P 500 futures inched 0.1% lower.

Bond yields have risen sharply this month as prospects of more U.S. fiscal stimulus boosted hopes for a faster economic recovery globally. However, that is also fuelling inflation worries, prompting investors to sell growth stocks that have rallied in recent months.

“Real U.S. interest rates are now in positive territory, which has created some concern around the consequences for equities markets,” Cesar Perez Ruiz, chief investment officer at Pictet Wealth Management said in a report.

U.S. 10-year Treasury yields edged up to 1.374% but remained below the one-year high of 1.394% hit on Monday.

Germany’s 10-year Bund yields also rose to -0.309% but were below the 8-month high of -0.278% hit in the previous session.

Commodity prices strengthened again.

Oil prices jumped by more than $1, underpinned by optimism over COVID-19 vaccine rollouts and lower output as U.S. supplies were slow to return after a deep freeze in Texas shut in crude production last week.

Brent crude was last up 0.9% at $66.18 a barrel after earlier hitting a fresh 13-month high of $66.79, while U.S. crude rose 1.2% to $62.45 a barrel.

“Oil has been caught up in the broader commodities move higher, with a weaker USD proving constructive for the complex,” ING strategists led by Warren Patterson said in a note.

“Meanwhile, there is also a growing view that the oil market is looking increasingly tight over the remainder of the year”.

Copper prices meanwhile hit a 9-1/2-year high as tight supply and solid demand from top consumer China boosted sentiment.

In currency markets, the dollar briefly dropped to its lowest since Jan. 13 ahead of Powell’s testimony, while commodity-linked currencies hovered near multi-year highs.

The dollar index was up 0.1% at 90.143, with the euro flat at $1.2151.

US reaches 500,000 COVID deaths

NEW YORK  — The United States on Monday crossed the staggering milestone of 500,000 COVID-19 deaths just over a year since the coronavirus pandemic claimed its first known victim in Santa Clara County, California.

In a proclamation honoring the dead, President Joseph R. Biden ordered the US flag to be flown at half-staff on public buildings and grounds until sunset on Friday.

“On this solemn occasion, we reflect on their loss and on their loved ones left behind,” Mr. Biden said in the proclamation. “We, as a Nation, must remember them so we can begin to heal, to unite, and find purpose as one Nation to defeat this pandemic.”

Bells tolled at the National Cathedral in Washington to honor the lives lost — ringing 500 times to symbolize the 500,000 deaths.

“As we acknowledge the scale of this mass death in America, remember each person and the life they lived,” Mr. Biden said in a somber speech at the White House after the bells sounded.

“The son who called his mom every night just to check in. The father, the daughter who lit up his world. The best friend who was always there. … The nurse who made her patients want to live.”

A few moments later, Mr. Biden, Vice President Kamala Harris and their spouses appeared wearing black clothing and black masks. They stood silently as the hymn “Amazing Grace” was played.

The country had recorded more than 28 million coronavirus disease 2019 (COVID-19) cases and 500,264 lives lost as of Monday afternoon, according to a Reuters tally of public health data, although daily cases and hospitalizations have fallen to the lowest level since before the Thanksgiving and Christmas holidays.

About 19% of total global coronavirus deaths have occurred in the United States, an outsized figure given that the nation accounts for just 4% of the world’s population.

“This is the worst thing that’s happened to this country with regard to the health of the nation in over 100 years,” Dr. Anthony Fauci, a top infectious disease adviser to President Biden, said in an interview with Reuters on Monday. He added that decades from now, people would be talking about “that horrible year of 2020, and maybe 2021.”

For most of 2020, Mr. Fauci served on former President Donald Trump’s White House Coronavirus Task Force, a job that often put him at odds with Mr. Trump, who sought to downplay the severity of pandemic despite contracting COVID-19 himself, and refused to issue a national mask mandate.

Political divisiveness, Mr. Fauci said, contributed significantly to the US death toll.

MORE VIGILANCE URGED
The country’s poor performance reflects the lack of a unified, national response last year, when the administration of former President Trump mostly left states to their own devices in tackling the greatest public health crisis in a century, with the president often in conflict with his own health experts.

In 2020, the virus has taken a full year off the average life expectancy in the United States, the biggest decline since World War Two.

Sweeping through the country at the beginning of last year, the US epidemic had claimed its first 100,000 lives by May.

The death toll doubled by September as the virus ebbed and surged during the summer months.

Pandemic-weary Americans, like so many around the world, grappled with the mountain of loss brought by COVID-19 as health experts warned of yet another coronavirus resurgence during the fall and winter months.

Americans lost mothers and fathers, husbands and wives, brothers, sisters and friends to the virus. For many, the grief was amplified by the inability to see loved ones in hospitals or nursing homes and by the physical distancing imposed by authorities to curb the virus spread.

By December, the death toll had reached 300,000 in the United States. In the three months after Thanksgiving, the virus would claim 230,000 lives.

With numbers that made the appalling toll early in the pandemic pale by comparison, deaths recorded between December and February accounted for 46% of all US COVID-19 fatalities, even as vaccines finally became available and a monumental effort to inoculate the American public got started.

Despite the grim milestone, the virus appears to have loosened its grip as COVID-19 cases in United States fell for the sixth consecutive week. Health experts have warned, however, that coronavirus variants initially discovered in Britain, South Africa and Brazil could unleash another wave that threatens to reverse the recent positive trends.

In his White House remarks, Mr. Biden called on Americans to remain vigilant in fighting the pandemic by continuing to wear masks, observe social distancing and receive vaccinations when it is their turn. — Reuters

Elon Musk loses $15B in a day after Bitcoin warning

cryptocurrency bitcoin
A COLLECTION of Bitcoin (virtual currency) tokens are displayed in this picture illustration, in Paris, France, Dec. 8, 2017. — REUTERS

ELON Musk is no longer the world’s richest person after Tesla, Inc. shares slid 8.6% on Monday, wiping $15.2 billion from his net worth.

Tesla’s biggest decline since September was fueled in part by Mr. Musk’s comments over the weekend that the prices of Bitcoin and smaller rival Ethereum “do seem high.” His message — via his favored medium of Twitter — came two weeks after Tesla announced it added $1.5 billion in Bitcoin to its balance sheet.

Mr. Musk also tweeted earlier Monday that the company’s Model Y Standard Range SUV would still be available “off the menu,” backing up reports from electric vehicle news site Electrek that the model had been removed from its online configurator.

Mr. Musk drops to second on the Bloomberg Billionaires Index of the world’s 500 richest people with a net worth of $183.4 billion — down from a peak of $210 billion in January. Amazon.com, Inc. founder Jeff Bezos reclaimed the top spot even as his fortune fell by $3.7 billion to $186.3 billion Monday.

The two billionaires have been swapping places since January as the value of Tesla fluctuated. The stock surged as much as 25% to start 2021 before wiping off almost all of this year’s gain. Mr. Musk briefly overtook Mr. Bezos after his rocket company SpaceX raised $850 million earlier this month, valuing the company at $74 billion, a 60% jump from August.

Mr. Bezos occupied the top spot on the ranking for three straight years prior to January, when Mr. Musk eclipsed the e-commerce titan thanks to a 794% rally in Tesla shares.

The market selloff on Monday hit many of the world’s ultra-rich. Zhong Shanshan, Asia’s wealthiest person, was the second-biggest decliner on the Bloomberg index, dropping by $5.1 billion as his bottled-water company fell 4.5%. Colin Huang of Pinduoduo, Inc., Reliance Industries Ltd.’s Mukesh Ambani and Tencent Holdings Ltd.’s Pony Ma all lost more than $2.5 billion each. — Bloomberg

GAB reminds Magnolia player Abueva he is still on probation

NEWLY acquired Magnolia Hotshots Pambansang Manok player Calvin Abueva has been reminded by the local professional sports regulatory body that he is still on probation and must comply with the conditions set forth.

In a message to members of media on Tuesday, Games and Amusements Board (GAB) Chairman Baham Mitra shared that they have reached out to Mr. Abueva, through Magnolia team manager Alvin Patrimonio, on his obligations under the probationary setup given to him despite having transferred to a new Philippine Basketball Association (PBA) team.

The reminder came after Mr. Abueva, the GAB said, missed some of his mandatory monitoring sessions in the last two months to attend to pressing family matters.

“Calvin is still under the six-month probation period. Even if he has transferred to a different team, as a professional athlete licensed by GAB, he still needs to honor what has been agreed upon and his commitment to the Board, which was the basis of the reinstatement. He is a professional athlete and the youth look up to him. We expect him to set an example to the younger generation,” said Mr. Mitra.

Mr. Abueva was reinstated in the PBA in October after being suspended by the league for 16 months for conduct unbecoming of a professional and actions detrimental to the association.

No sooner after his league suspension, GAB revoked Mr. Abueva’s professional license pending fulfilment of requirements for reinstatement.

The player worked hard to get his act together and eventually got his license back and was allowed by the PBA to join his former team Phoenix Super LPG Fuel Masters midway into the “bubble” tournament in October.

In his return, Mr. Abueva was still his all-around self, averaging 15.4 points, 11.3 rebounds, 5.2 assists and 1.7 steals, helping the Fuel Masters to come within a win away from advancing to their first-ever PBA finals appearance.

He was in the running for best player of the conference and held his emotions in check throughout the tournament, even earning consideration for the sportsmanship award.

Phoenix repaid his efforts by re-signing him to a three-year contract in December.

But last week, in a surprise move, Phoenix traded the seven-time All-Star to Magnolia in exchange for guard Chris Banchero and two picks in this year’s rookie draft.

In trading him, Phoenix said it was not an easy decision to make, considering what he brings to the team but something it had to do for it felt there were other teams that could better handle his persona on and off the court moving forward.

It went on to say that it considered the offer and felt it would be a win-win deal for all concerned with them getting value in return, apart from pursuing the direction it wants to take, and Magnolia acquiring a player like Mr. Abueva and the latter going to a good team.

Now with Magnolia, Mr. Mitra reiterated the need for Mr. Abueva to comply with the terms of his probation, which was signed with his former team Phoenix and now assumed by Magnolia.

These also include the Hotshots providing the necessary support that Mr. Abueva needs to cope with the demands warranted by his professional practice as an athlete.

GAB will reevaluate Mr. Abueva after completing his six months probation. — Michael Angelo S. Murillo

Alex Eala sustains rise in WTA singles rankings

By Michael Angelo S. Murillo, Senior Reporter

ALEX Eala of the Philippines has sustained her ascent in the world rankings, now at a career-high 763 in the latest list released by the Women’s Tennis Association (WTA).

Fifteen-year-old Eala saw her rankings climb by 140 points from her previous spot built on strong showing in recent tournaments she participated in.

Ms. Eala, a Rafa Nadal Academy scholar and longtime Globe ambassador, won her first professional women’s singles title when she defeated Spanish player Yvonne Cavalle-Reimers in the finals of the first leg of the Rafael Nadal Academy ITF World Tennis Tour in Mallorca, Spain, last month.

She then followed it up with quarterfinal finishes in the second and third legs of the Manacor W15 tournaments before flying to Grenoble, France.

In Grenoble, the Filipino tennis ace continued to make waves, going deep in the W25 tournament with wins over Laura Iona-Paar and seventh seed Cristina Bucsa before bowing to Maja Chwalińska of Poland in the battle for a spot in the semifinals.

“Happy with my new WTA ranking!” wrote Ms. Eala on her Facebook page.

The rise is a continuation of her solid run in the tennis circuit the last two years which has her claiming many firsts, including winning the Australian Open girls’ doubles title along with partner Priska Nugroho of Indonesia and a semifinal finish in the French Open juniors singles tournament in 2020.

Ms. Eala is currently the number 3 juniors player in the International Tennis Federation, allowing her entry to several women’s singles professional tournaments.

These tournaments give her chances to gain points that will help improve further her ranking.

In addition, her entry to top-ranked tournaments gives her much-needed experience and exposure against the best in the WTA.

In the latest WTA rankings, Australian Ashleigh Barty remains number one followed by Australian Open champion Naomi Osaka of Japan (second), Simona Halep of Romania (third), Sofia Kenin of the United States (fourth), and Elina Svitolina of Ukraine (fifth).

Completing the top 10 are Karolina Pliskova (Czech Republic), Serena Williams (US), Aryna Sabalenka (Belarus), Bianca Andreescu (Canada), and Petra Kvitova (Czech Republic).

Alaska Aces send Manuel to Phoenix Fuel Masters

By Michael Angelo S. Murillo, Senior Reporter

Philippine Basketball Association forward Vic Manuel finally got his wish to be traded after the Alaska Aces sent him to the Phoenix Super LPG Fuel Masters on Tuesday.

The Aces also shipped their first (seventh overall) and second (19th overall) round picks in this year’s rookie draft in the deal which was sent to the league office and eventually approved by the trade committee.

In exchange for Mr. Manuel and the two picks, Phoenix sent guard Brian Heruela and the team’s first-round pick (sixth overall) in the March 14 rookie draft, which it got in a previous trade with the Magnolia Hotshots Pambansang Manok for Calvin Abueva.

The Fuel Masters also gave the Aces their second-round pick (16th overall) in this year’s draft and first-round pick for Season 47.

Mr. Manuel, 33, requested for a trade last month over what he felt was Alaska’s lack of interest in re-signing him after his contract lapsed last year.

But Alaska said the player was part of their plans and intent on signing him.

Phoenix was one of the teams Mr. Manuel preferred to be traded to if a deal was to happen.

The “Muscleman” Manuel averaged 15.9 points, six rebounds and 2.1 assists in the PBA “bubble” last year for the Aces, where they reached the quarterfinals.

In Phoenix, Mr. Manuel is expected to fill the void left by do-it-all Abueva, who was traded to Magnolia last week.

The Fuel Masters also look to add key pieces from the picks they got.

Alaska, meanwhile, got a veteran player in Mr. Heruela but on top of that it got picks it can use to further fill up its roster for what seemingly is a youth movement in the team for the upcoming season.