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EU report accuses Russia, China of sowing mistrust in Western vaccines

BRUSSELS — Russian and Chinese media are systematically seeking to sow mistrust in Western COVID-19 vaccines in their latest disinformation campaigns aimed at dividing the West, a European report said on Wednesday.

From December to April, the two countries’ state media outlets pushed fake news online in multiple languages sensationalizing vaccine safety concerns, making unfounded links between jabs and deaths in Europe and promoting Russian and Chinese vaccines as superior, the EU study said.

The Kremlin and Beijing deny all disinformation allegations by the EU, which produces regular reports and seeks to work with Google, Facebook, Twitter and Microsoft to limit the spread of fake news.

Russian and Chinese vaccine diplomacy “follows a zero-sum game logic and is combined with disinformation and manipulation efforts to undermine trust in Western-made vaccines,” said the EU study released by the bloc’s disinformation unit, part of its EEAS foreign policy arm.

“Both Russia and China are using state-controlled media, networks of proxy media outlets and social media, including official diplomatic social media accounts, to achieve these goals,” the report said, citing 100 Russian examples this year.

The EU and NATO regularly accuse Russia of covert action, including disinformation, to try to destabilize the West by exploiting divisions in society.

“A disinformation report that has no factual basis is in itself an example of disinformation,” the Chinese mission to the EU said in a statement dated Thursday in response to the report.

Russia denies any such tactics and President Vladimir Putin has accused foreign foes of targeting Russia by spreading fake news about the coronavirus.

Vaccine supply issues with AstraZeneca, as well as very rare side effects with AstraZeneca and the Johnson & Johnson vaccines have been seized upon, the report said.

“Both Chinese official channels and pro-Kremlin media have amplified content on alleged side-effects of the Western vaccines, misrepresenting and sensationalizing international media reports and associating deaths to the Pfizer/BioNTech vaccine in Norway, Spain and elsewhere,” the report said.

Last year, China sought to block an EU report alleging that Beijing was spreading disinformation about the coronavirus outbreak, according to a Reuters investigation.

While the EU has not vaccinated its 450 million citizens as fast as Britain, which is no longer a member of the bloc, shots are now gaining speed, led by US drug maker Pfizer’s shots and its German partner BioNTech.

Russian media reported that “Brexit saved the UK from the ‘vaccine chaos’ engulfing the EU,” the EU said. “Such narratives indicate an effort to sow division within the EU,” it added.

In the report, released online at https://euvsdisinfo.eu/, the EU said Russia’s official Sputnik V Twitter account sought to undermine public trust in the European Medicines Agency.

Sputnik V responded that the disinformation campaign is against Russia and its vaccine, not the other way around.

“We will continue to fight disinformation campaign against Sputnik V in the interests of protecting lives around the world and avoiding vaccine monopoly that some vaccine producers may strive for,” it said on Twitter.

The Twitter account is managed by the Russian sovereign wealth fund, the Russian Direct Investment Fund, which is responsible for marketing and promoting the Sputnik V vaccine.

China meanwhile promoted its vaccines as a “global public good” and “presenting them as more suitable for developing countries and also the Western Balkans,” the report found. Western Balkan countries are seen as future EU members. — Reuters

Australia wine exports to China plunge 96% as tariffs turn producers away

SYDNEY – Australian winemakers shipped just A$12 million ($9 million) of wines to China in the four months from December to March, from A$325 million a year earlier, industry figures showed, confirming that hefty new tariffs have all but wiped out their biggest export market.

The figures from industry body Wine Australia on Thursday show the swift impact of measures taken by China’s commerce ministry and the country’s anti-dumping probe into imports of Australian wines last year.

The figures also put a dollar value on a broader geopolitical dispute between Australia and its biggest trade partner which has spread to the sugar, lobster, barley, and coal and copper ore industries.

From December to March, the period after China said it was investigating the Australians on suspicion of exporting wine at a loss to gain market share, or “dumping”, Australian wine shipments collapsed to almost nothing and stayed there at the start of 2021, the figures showed.

That marked the end of a yearslong run of double-digit growth in Australia-China wine exports, by dollar value, which lasted into October before crashing the following month, according to the figures.

For the year to March, sales to mainland China, which takes nearly a third of Australian wine exports, fell 24% to A$869 million. The next biggest export market was the United Kingdom, up by a third to $461 million as winemakers redirected exports there.

“They were out to play political games, they wanted Australia to get on its knees, unfortunately we said no,” said Bruce Tyrrell, managing director of Tyrrell’s Wines, in the Hunter Valley north of Sydney, which previously sent up to a quarter of overseas sales to China.

“We’ve got countries like US, UK, Canada, the traditional markets. We’ve now got to increase our distribution in the counties we deal with,” he told Reuters by phone.

The value of wine exports to the United States rose 4% to A$432 million in the year to March, the Wine Australia figures showed. — Reuters

Facebook’s digital literacy program provides practical lessons on data privacy

Screenshot via We Think Digital/Digital Tayo

An expanded version of Facebook Philippines’ Digital Tayo program, a local adaptation of the social network’s digital literacy program, addresses the recent shift to digital learning by providing new lessons on privacy, managing passwords, and cybersecurity. 

Modules on digital engagement and digital empowerment, meanwhile, help students interpret cultural and social differences, and how to participate in public matters and advocate for issues they care about. Digital Tayo 2.0 also aims to foster a positive online community through modules on community engagement and news verification.

The program builds on the 2019 release, which provided free resources aimed at equipping Filipino netizens with skills for a digital world. One of the first modules created helped parents teach their children how to safely navigate the Internet. The program has since trained more than 400,000 individuals across the country through face-to-face workshops, and has created a community of 2,000 Digital Tayo trainers. 

“Content was generated for both 2019 and 2021 through consultations with experts and our partners,” said Clare Amador, head of public policy of Facebook Philippines, at the expanded program’s media launch. “We looked at what was happening in the market. We also consulted psychology experts to see what fits both the Filipino psyche and the general audience. Our partners were very willing to provide inputs.” 

The Philippine team, she said, targeted 1 million people in 2019 — a number they considered ambitious given that the training was done face-to-face. “We have since been able to reach more than 5 million people with this online shift,” Ms. Amador said. “It enabled us to reach those Filipinos not based in the Philippines. We were even able to conduct digital literacy to OFWs (overseas Filipino workers).”

The program’s collection of resources is meant to encompass all ages and digital literacy levels, said Chris Kuzhuppilly, public policy manager of Facebook Philippines.

“The intention was to cover everyone — from parents to students to educators,” he added. “For our younger audiences, we developed infographics and videos that are interactive and more appealing.”

Modules are also being developed in local languages such as Filipino and Cebuano.

Among the program’s 21 civil society and government partners is Plan International, an independent development and humanitarian organization working in 71 countries worldwide. According to Shigemi Muramatsu, Plan International’s campaigns and advocacy specialist, digital citizenship should be treated at the same level as communications classes, computer literacy, and values education. 

“Digital citizenship is a compendium of the important skills of critical thinking, communication, collaboration, and creativity,” Ms. Muramatsu said in a press statement. “What we love about this collaboration is that we are able to address the problem through different points of view, making our efforts stronger and well-rounded across sectors.” — Patricia B. Mirasol 

Interactive data-driven dashboard to aid LGUs

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An interactive dashboard launched by Liveable Cities, an innovation-sharing platform, aims to help local chief executives identify areas for improvement in their cities. By providing a visual profile of every city in the country, the dashboard also serves as a guide for the general public and the private sector to identify ways for using public data to engage with their community. 

Developed with experience partner Delivery Associates, the dashboard consolidates multiple data sources from agencies and partners, as well as the 146 local government units (LGUs) themselves. 

“What gets measured gets managed,” said chairman Guillermo “Bill” M. Luz, at the recent launch. The dashboard, he added, allows everyone to get the complete data of a city across indicators, compare cities with the national average, and track a city’s performance based on a specific indicator in a time series. 

The dashboard tracks 11,680 indicators across 10 categories: basic information, labor, education, local economy, doing business, mobility and connectivity, health, urban environment, resiliency and emergency response, and safety and security.

“With data, kahit malaki lungsod mo, kaya mo gawin lahat [With data, even if you have a big city, you can manage everything],” said Quezon City (QC) Mayor Ma. Josefina “Joy” Belmonte-Alimurung at the said launch. “Data is the key.” 

Quezon City’s QCitizen ID, for instance, unifies all the data sets each QC resident might be qualified for. In the past, the city had to contend with multiple data sets for each person, as some individuals qualified for several different parameters (a senior citizen, a single parent, a person with disability, et al.).

Data can also keep a city safe from security threats, as shown by Zamboanga City’s experience. 

“When we had the Zamboanga siege, we were grateful for the USAID (United States Agency for International Development) to provide us data,” said Zamboanga City mayor Maria Isabelle G. Climaco-Salazar. The city eventually invested P1.2 billion pesos on data analytics to focus on its human security challenge. “Our decisions affect not only our city but surrounding LGUs and municipalities in Region 9, as well as Basilan, Sulu, and Tawi-Tawi,” she added. “We have to choose our battles so data is very needed.” 

The dashboard will be updated with new information over time, said John A. Tully, associate director of Delivery Associates, Zoning maps are also being considered in the upcoming version.

“All data points are just two clicks away,” he said. “We will be adding more functions in response to feedback.” Setting up a custom dashboard for a city, he added, can be done in as quickly as a few weeks. “It is possible for every city and municipality to have a dashboard without having to do expensive development.”

Added Mr. Luz: “Consider this our contribution to create more data-driven cities,” — Patricia B. Mirasol

Myanmar seeks murder, treason charges against protest leader; air strikes in east

FLOWERS hang during a nationwide flower campaign against the military coup in Yangon, Myanmar, April 2, 2021. — REUTERS
REUTERS

Myanmar authorities are seeking to file charges of murder and treason against one of the main leaders of the protest campaign against military rule, the state broadcaster said on Wednesday.

Wai Moe Naing was arrested on April 15 when security men rammed him with a car as he led a motorbike protest rally in the central town of Monywa.

Myanmar Television, in its main evening news bulletin, broadcast a list of charges being sought against him, including murder and treason, that it said had been filed with police.

Wai Moe Naing, a 25-year-old Muslim, has emerged as one of the most high-profile leaders of opposition to the Feb. 1 coup that overhrew an elected government led by Aung San Suu Kyi.

It is not clear if he has a lawyer.

Pro-democracy protests have taken place in cities and towns across the country since the coup, with Monywa one of the main centres of opposition.

The military has cracked down with lethal force on the protesters, killing more than 750 people, an activist group says. Reuters is unable to confirm the casualty toll.

Fighting has also intensified between the military and ethnic minority Karen insurgents in the east with more air strikes sending villagers fleeing into neighbouring Thailand, Thai officials said.

Earlier on Wednesday, Myanmar’s pro-democracy unity government, formed to oppose the junta, ruled out talks on the crisis until all political prisoners are released.

The 10-member Association of Southeast Asian Nations (ASEAN), alarmed by the turmoil in one of its members, has been trying to find a path for Myanmar out of the crisis and held a meeting on Saturday in the Indonesian capital with the leader of the junta, Senior General Min Aung Hlaing.

The pro-democracy National Unity Government (NUG), which includes members of parliament ousted by the coup, was not invited to the talks. It said ASEAN should be engaging with it as the legitimate representative of the people.

“Before any constructive dialogue can take place, however, there must be an unconditional release of political prisoners including President U Win Myint and State Counsellor Daw Aung San Suu Kyi,” the NUG prime minister, Mahn Winn Khaing Thann, said in a statement.

There was no immediate comment from any senior ASEAN official, and a spokesman for the Myanmar military did not answer calls seeking comment.

AIR STRIKES AND REFUGEES
Win Myint, Suu Kyi and others have been detained since the coup, which the military launched as her government was preparing for a second term after sweeping a November election.

The military said it had to seize power because its complaints of election fraud were not addressed by an election commission that deemed the vote fair.

The Assistance Association for Political Prisoners advocacy group says more than 3,400 people have been detained for opposing the coup.

ASEAN leaders said after the weekend meeting that they had reached a “five-point consensus” on steps to end violence and promote dialogue between the Myanmar rivals.

But the junta declined to accept the ASEAN proposals, saying it would consider them “when the situation returns to stability” and provided the recommendations facilitated the military’s own roadmap.

Protesters marched in support of the NUG in the second city of Mandalay, the Myanmar Now media outlet reported.

There was no report of violence at the protest but two small bombs — one in Mandalay and one in the main city of Yangon — later wounded several people, media reported.

There was no claim of responsibility.

Karen insurgents captured Myanmar army posts near the Thai border on Tuesday in some of the most intense clashes since the coup which included air strikes by the military.

More air strikes on Wednesday, with warplanes and helicopters, forced about 100 villagers to the Thai side of the border, Thai authorities said.

The Karen and other ethnic minority forces based in frontier regions have supported the largely urban-based pro-democracy opponents of the junta.

Clashes have also broken out in Chin State, which is on the border with India, between anti-coup activists and security forces. Myanmar Now reported 30 government soldiers were killed in four days of clashes there.  — Reuters

Huawei quarterly sales slump as sanctions hit phone business

Huawei Technologies Co.’s revenue shrank for a second straight quarter after U.S. sanctions devastated the embattled Chinese tech giant’s smartphone business.

Huawei reported a 17% decline in sales to 152.2 billion yuan ($23 billion) in the first three months of this year, the company said in a statement. That follows a 11% decline in revenue for the three months ended December. Its profit margin rose 3.8 percentage points to 11.1%, which translates into net income of 16.9 billion yuan, as the company trimmed costs and received a $600 million patent license fee.

“2021 remains a challenging year for Huawei, but it also marks the start of a clear strategy for the company’s future,” rotating Chairman Eric Xu said in the statement Wednesday. “Huawei will continue to focus on technological innovation and investing in R&D to ensure supply continuity under sanctions.”

The unaudited figures were compiled in accordance with international accounting standards and differed slightly from results it filed to the Shanghai Clearing House, a government-backed clearing services platform.

Shenzhen-based Huawei is emerging from its toughest year on record, when sanctions by the Trump administration smothered its once-leading smartphone business and stymied advances into chipmaking and fifth-generation networking. The Biden White House has shown few signs of letting up, prompting billionaire founder Ren Zhengfei to direct the firm toward new growth areas such as smart agriculture, health care, cloud computing and electric cars.

Huawei is vying with other tech giants like Baidu Inc. and Xiaomi Corp. in venturing into the rapidly evolving fields of connected vehicles, homes and workplaces. The firm pledged $1 billion toward developing self-driving and electric-car technologies this year and has started to sell EVs with partner Chongqing Sokon Industry Group Co. — Bloomberg 

Major Chinese investors in talks to take Aramco stake — sources

Image via Aramco
Image via Aramco

HONG KONG — Major Chinese investors are in talks to buy a stake in Saudi Aramco, several sources told Reuters on Wednesday, as Saudi Arabia’s state oil firm prepares to sell another slice of its business to international investors.

Saudi Arabia was in discussions to sell 1% of Aramco to a leading global energy company and could sell further shares including to international investors within the next year or two, Crown Prince Mohammed bin Salman said in televised remarks on Tuesday.

A stake of 1% would equate to around $19 billion based on Aramco’s current market capitalization.

Sovereign wealth fund China Investment Corporation (CIC) was among those that could invest, two sources told Reuters.

Aramco was talking to CIC, as well as Chinese national oil companies, said one of the sources close to CIC. None of the Chinese companies could be reached immediately for comment.

Aramco had been in touch with Chinese investors for a few years and CIC is the most likely investor, said the second source with a state-backed private equity fund.

“The kingdom does have close relations with China,” said a third source, who is close to Aramco. “The major shareholder will decide what to do with their shares.”

Saudi Arabia, the world’s biggest oil exporter, retained its position as China’s biggest crude oil supplier for a seventh consecutive month in March.

Another source said before the coronavirus disease 2019 (COVID-19) pandemic, Aramco had toured around China looking for investors, talking to all the major state investors with overseas money, but few were interested. CIC and China’s Silk Road Fund were also among the firms they approached.

Aramco, the world’s biggest oil company, listed on the Saudi bourse in late 2019, raising $25.6 billion in the IPO and later sold more shares under a “greenshoe option” to raise the total to $29.4 billion.

“There are talks now for the acquisition of a 1% stake by a leading global energy company in an important deal that would boost Aramco’s sales in … a major country,” Prince Mohammed said, without elaborating.

“There are talks with other companies for different stakes, and part of Aramco’s shares could be transferred to the (Saudi) Public Investment Fund and a part listed … on the Saudi bourse,” he said in an interview aired by Saudi TV marking the fifth anniversary of Vision 2030.

The 2019 Aramco IPO was seen as a pillar of the economic diversification programme aimed at attracting foreign investment.

Prince Mohammed said in the interview that Riyadh was strengthening its relationships with China, India and Russia, though the United States remained a strategic partner despite some differences with the Biden administration, which has taken a tougher stance on Saudi Arabia.

“China has said Saudi Arabia is a strategic partner, India has said Saudi Arabia is a strategic partner and Russia has also said Saudi Arabia is a strategic partner,” the prince said.

Friction between China and the United States has flared in recent months on a range of issues, including Taiwan and Beijing’s use of forced labour in its northwestern Xinjiang province, home to the Muslim Uighur minority. — Kane Wu, Tom Arnold and Alex Lawler/Reuters

Government, industry push bitcoin regulation to fight ransomware scourge

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SAN FRANCISCO — Government and industry officials confronting an epidemic of ransomware, where hackers freeze the computers of a target and demand a payoff, are zeroing in on cryptocurrency regulation as the key to combating the scourge, sources familiar with the work of a public-private task force said.

In a report on Thursday, the panel of experts is expected to call for far more aggressive tracking of bitcoin and other cryptocurrencies. While those have won greater acceptance among investors over the past year, they remain the lifeblood of ransomware operators and other criminals who face little risk of prosecution in much of the world.

Ransomware gangs collected almost $350 million last year, up threefold from 2019, two members of the task force wrote this week. Companies, government agencies, hospitals and school systems are among the victims of ransomware groups, some of which US officials say have friendly relations with nation-states including North Korea and Russia.

“There’s a lot more that can be done to constrain the abuse of these pretty amazing technologies,” said Philip Reiner, chief executive of the Institute for Security and Technology, who led the Ransomware Task Force. He declined to comment on the report before its release.

Just a week ago, the US Department of Justice established a government group on ransomware. Central bank regulators and financial crime investigators worldwide are also debating if and how cryptocurrencies should be regulated.

The new rules proposed by the public-private panel, some of which would need Congressional action, are mostly aimed at piercing the anonymity of cryptocurrency transactions, the sources said. If implemented, they could temper enthusiasm among those who see the cryptocurrencies as a refuge from national monetary policies and government oversight of individuals’ financial activities, having surged past $1 trillion in total capitalization.

The task force included representatives from the Federal Bureau of Investigation (FBI) and the United States Secret Service as well as major tech and security companies. It will recommend steps such as extending “know-your-customer” regulations to currency exchanges; imposing tougher licensing requirements for those processing cryptocurrency; and extending money-laundering rules to facilities such as kiosks for converting currency.

It also calls for the creation of a special team of experts within the Justice Department to facilitate seizures of cryptocurrency, a process currently fraught with logistical and legal challenges.

Some of the ideas echo those proposed by the Financial Crimes Enforcement Network, which would expand disclosure rules for transactions worth more than $10,000.

Federal investigators said a proposal to register accounts would be especially helpful for identifying drug smugglers, human traffickers, and terrorists as well as ransomware groups.

“That would be huge,” said a senior Homeland Security Official, who spoke on condition of anonymity to discuss emerging policy proposals. “This is a world that was created exactly to be anonymous, but at some point, you have to give up something to make sure everyone’s safe.”

Governments are already using the blockchain ledger that documents all bitcoin transactions to bring some charges. Last week, authorities arrested a man in Los Angeles and accused him of laundering more than $300 million through a service that combines transactions from multiple cryptocurrency wallets to obscure who is paying whom.

Records from the US Marshals Service show that more than $150 million in crypto assets were seized last year and offered to the public at auction. Last week, the Marshals Service signed a $4.5 million deal with BitGo, a California-based exchange, to hold and sell more forfeited cryptocurrency.

But many of the exchanges, which conduct the critical operation of turning cryptocurrency into dollars or other widely accepted currencies, are in countries outside the reach of US regulators.

The Institute for Security and Technology’s Mr. Reiner said that international cooperation will be critical, and that pressure could be brought by allies with similar regulations, which could help push exchanges into countries where Americans will hesitate to send their funds.

“However much crypto markets think they have created their own networks, they still rely on existing financial markets,” Mr. Reiner said. — Joseph Menn and John Shiffman/Reuters

Apple soars past sales, profit targets with strong iPhone demand, warns of chip shortages

Apple Inc. on Wednesday posted sales and profits ahead of Wall Street expectations fueled by 5G iPhone upgrades but warned a global chip shortage could dent iPads and Mac sales by several billion dollars.

Fiscal second-quarter sales to China nearly doubled and results topped analyst targets in every category, led by $6.5 billion more in iPhone sales than predicted and Mac sales about a third higher than estimates.

Apple also announced a $90 billion share buyback, a day after Alphabet Inc. promised to repurchase $50 billion in stock.

Apple Chief Executive Tim Cook said on an investor call that Apple avoided a chip shortage in the fiscal second quarter by burning through supply buffers.

In the fiscal third quarter, the shortage could cost the company $3 billion to $4 billion in revenue, said Chief Financial Officer Luca Maestri.

The shortfalls “affect primarily the iPad and the Mac,” Mr. Cook said. “We’ll have some challenges in there,” Mr. Cook said, later adding that there could be trouble sourcing semiconductors made with older chipmaking technology. Those are the same class of older-technology chips bedeviling Ford Motor Co., which on Wednesday said the shortage slashed production in half in its second quarter.

Mr. Cook said Apple competes against other industries for chipmaking capacity in those older factories and “it’s very, very difficult” to predict when shortages will end, he said.

Mr. Maestri said he expects revenue for the quarter ending in June to grow by “strong double digits” year over year but a steeper-than-usual decline in revenue between its fiscal second and third quarters because of a later iPhone 12 launch.

Apple had thrived through the coronavirus pandemic as home-bound consumers stocked up on electronic devices and signed up for paid apps and services for fitness and music, and sales shot up even higher as Apple released 5G iPhone models last fall.

For the fiscal second quarter ended March 27, Apple said sales and profits were $89.6 billion and $1.40 per share, compared with estimates of $77.4 billion and 99 cents per share, according to Refinitiv data.

IPhones were the biggest driver of growth, suggesting consumers are upgrading to 5G, said Haris Anwar, senior analyst at Investing.com.

“Stimulus checks and the successful vaccine rollouts are certainly helping to boost consumer demand for tech gadgets across the board,” Mr. Anwar said.

While Apple’s business is booming, its App Store, one of its fastest-growing businesses, has come under increased antitrust scrutiny because of Apple’s in-app payment rules and app review policies.

In addition, Facebook warned on Wednesday that its growth later this year could “significantly” decline as new Apple privacy policies will make it more difficult to target ads.

In the fiscal second quarter, Macs and iPads — two product categories that Wall Street rarely counted on to supply growth — both benefited from consumers working from home and remote learning. On top of those trends, Mr. Cook said Apple customers were responding strongly to the company’s M1 chip, its first in-house processor for Mac computers.

“Both of those things happening at once really supercharged the Mac sales. The last three quarters on Mac have been the strongest three quarters ever in the history of the Mac,” Mr. Cook told Reuters.

Apple raised its dividend 7% to 22 cents per share.

Apple said iPhone sales were $47.9 billion compared with analyst estimates of $41.4 billion, according to data from FactSet.

Sales of Macs and iPads were $9.1 billion and $7.8 billion, respectively, compared with FactSet estimates of $6.8 billion and $5.6 billion.

Apple investors are looking for growth from Apple’s accessories business, which includes products like AirPods headphones and its new AirTag trackers, and its services business, which includes its App Store and new offerings such as paid podcasts. Sales in the segments were $7.8 billion and $16.9 billion, respectively, versus estimates of $7.4 billion and $15.5 billion.

Mr. Cook said the company has 660 million paying subscribers on its platform, an increase from the 620 million in the fiscal first quarter.

Apple’s sales in the greater China region during the fiscal second quarter, which included the busy Lunar New Year shopping season, were up 87.5% to $17.7 billion, compared with a 57% rise in the previous quarter.

Shares of Apple are up some 93% over the past year, compared with a 61% rise for the Nasdaq 100 index of which Apple is a component. — Stephen Nellis/Reuters

China ‘closing in fast,’ Biden warns Congress, as he asks for trillions in spending

US Vice-president Kamala D. Harris and Speaker of the House Nancy Pelosi applaud as US President Joseph R. Biden, Jr., addresses a joint session of Congress in the House chamber of the US Capitol in Washington, US, April 28, 2021. -- Doug Mills/Pool via REUTERS

WASHINGTON — President Joseph R. Biden, Jr., proposed a sweeping new $1.8 trillion plan in a speech to a joint session to Congress on Wednesday, pleading with Republican lawmakers to work with him on divisive issues and to meet the stiff competition posed by China.

The Democratic president urged Republicans who have so far resolutely opposed him to help pass a wide array of legislation from taxes to police reform to gun control and immigration.

Republicans largely sat silently during the speech while Democrats applauded.

Mr. Biden, who took office in January, also made an impassioned plea to raise taxes on corporations and wealthy Americans to help pay for his $1.8 trillion “American Families Plan.”

“It’s time for corporate America and the wealthiest 1% of Americans to pay their fair share — just pay their fair share,” Mr. Biden said.

He made his plea in the House of Representatives at an event scaled back this year because of the pandemic, removing his mask to speak to a group of about 200 hundred Democratic and Republican lawmakers, other officials and guests.

Mr. Biden is trying to thread the needle between Republicans opposed to more spending and the tax increases needed to pay for it, and liberal Democrats who want him to push for more aggressive plans.

He said he was willing to work with lawmakers on both sides of the aisle to come to an agreement, and he is to meet top Democratic and Republican lawmakers at the White House on May 12 to try to find common ground.

But the initial Republican response to his speech was skeptical, and somewhat dismissive.

“This whole thing could have just been an e-mail,” Representative Kevin McCarthy, the top Republican in the House, said in a tweet.

Speaking less than four months after demonstrators loyal to then-President Donald J. Trump stormed the US Capitol in a bid to overturn the election results, Mr. Biden said America was “on the move again.”

“We have stared into an abyss of insurrection and autocracy — of pandemic and pain — and ‘we the people’ did not flinch,” he said. “At the very moment our adversaries were certain we would pull apart and fail, we came together — united.”

Mr. Biden argued that his proposals for families and infrastructure, which together total about $4 trillion, represent a once-in-a-generation investment vital to America’s future.

“Tonight, I come to talk about crisis — and opportunity,” he said. “About rebuilding our nation — and revitalizing our democracy. And winning the future for America.”

But Republicans say most of the spending is aimed at satisfying Mr. Biden’s liberal base, and that the president’s plans amount to socialism.

Mr. Biden said the spending plans were needed to keep up with China, which he and his administration sees as a major strategic challenger.

“China and other countries are closing in fast,” he said, adding that he has spent a lot of time talking to Chinese President Xi Jinping.

“He’s deadly earnest about becoming the most significant, consequential nation in the world. He and others, autocrats, think that democracy can’t compete in the 21st century with autocracies. It takes too long to get consensus.”

PROPOSED TAX OVERHAUL

Mr. Biden’s plan includes $1 trillion in spending on education and childcare over 10 years and $800 billion in tax credits aimed at middle- and low-income families. It also includes $200 billion for free, universal preschool and $109 billion for free community college regardless of income for two years, the White House said.

The American Families Plan and the infrastructure and jobs plan the White House introduced earlier this month could represent the most significant government transformation of the economy in decades.

To pay for the plans, Mr. Biden has proposed an overhaul of the US tax system, including raising the top marginal tax rate for the wealthiest Americans to 39.6% from its current 37%.

Mr. Biden has proposed nearly doubling the tax on investment income — known as capital gains — for Americans who earn more than $1 million. The $2 trillion-plus infrastructure plan is funded by an increase in corporate taxes.

News of the capital gains tax proposal caused stock markets to drop briefly last week.

Republican US Senator Tim Scott argued in his rebuttal to Mr. Biden’s speech that the proposals will hurt long-term economic growth.

“Our best future won’t come from Washington schemes or socialist dreams,” said Mr. Scott, the sole Black Senate Republican. “It will come from you — the American people,” Mr. Scott said.

He also argued that Mr. Biden’s presidency is benefiting from an economic recovery for which Mr. Trump, a Republican, set the stage. — Trevor Hunnicutt and Susan Cornwell/Reuters

Philippines to secure $3.9-billion ADB loans this year

The Asian Development Bank (ADB) increased its lending program for the Philippines this year to $3.9 billion (P188.9 billion), after including a fresh loan it granted for the government’s mass vaccination program.

The multilateral bank’s lending program is composed of eight projects in infrastructure, local governance and social programs, ADB Country Director for the Philippines Kelly Bird said in a briefing on Wednesday.

The program was divided into three categories covering infrastructure and long-term investments with two projects worth $1.93 billion; investments in people with three loans worth $1.2 billion; and local economic development with three projects worth $734 million.

The total amount of the updated lending program increased to $3.9 billion from $3.5 billion reported in December 2020, after the ADB approved a $400-million loan to buy coronavirus vaccines last month.

Other projects that are up for approval by the bank this year includes the $1.75-billion South Commuter railway project, a big-ticket infrastructure project aiming to connect Manila and Calamba, Laguna with a 54.6-kilometer railway system.

“The South Commuter project will be approved this year. We are aiming for most of those contracts to be awarded by the end of this year [and] civil works will begin next year,” Mr. Bird said.

The P180-million loan for the Metro Manila bridges project is also targeted to be approved this year, he said. The project involves the construction of three new bridges crossing Marikina River to ease traffic in Metro Manila.

ADB is also set to extend a $238-billion loan for the Davao Public Transport Modernization project, a $400-million loan for the Local Governance Reform program and $96-million loan to boost tourism in Palawan.

“[The loan for Palawan will not only be] focusing on capacity development for marine resource management, but also [on] providing grants to tourism enterprises to improve the competitiveness and skills training. The project is designed to ensure environmentally sustainable tourism in Palawan,” he said.

Under the “investment in people” pillar, the bank also aims to approve another $400-million loan for a project that would facilitate the school-to-work transition for youth. This will be the third and final subprogram for the project that ADB will finance, Mr. Bird said, after lending $400 million in 2019 and $300 million in 2017 for the program.

It is also expected to lend $400 million to partially fund the Universal Health Care program.

“We also have several civil standby projects that are still in preparation stages,” Mr. Bird said.

The ADB started ramping up its lending to the Philippines in 2019 as it aims to finance more infrastructure projects. The bank is looking to have an average $3-billion lending program for the Philippines each year until 2022.

Last year, the bank lent $4.24 billion to the Philippines, with 56% or $2.39 billion of which financing the government’s pandemic response. — Beatrice M. Laforga

Security Bank, MUFG Bank celebrate 5 years of cross-border alliance in the Philippine financial industry

On January 14, 2016, Security Bank Corporation and MUFG Bank of Japan sealed its strategic partnership. Pictured L-R Security Bank Chairman, Alberto S. Villarosa, Frederick Y. Dy, Chairman Emeritus and Go Watanabe, Managing Executive Officer and Chief Executive Officer for Asia and Oceania at MUFG Bank of Japan from June 2013 to June 2016.

Security Bank Corporation (PSE: SECB) and MUFG Bank, Ltd. (MUFG) celebrate five years of a strategic partnership that have allowed both banks to provide better financial services to Philippine corporate and SME communities. 

The partnership, which started in 2016, began with global bank MUFG acquiring a 20% stake in Security Bank for Php 36.9 billion. Since then, the two lenders have capitalized on its partnership by bringing top-notch products and services to customers while enjoying the benefits of continued innovation in financial services. 

On January 14, 2016, Security Bank Corporation and MUFG Bank of Japan sealed its strategic partnership. Pictured L-R Security Bank Chairman, Alberto S. Villarosa, Frederick Y. Dy, Chairman Emeritus and Go Watanabe, Managing Executive Officer and Chief Executive Officer for Asia and Oceania at MUFG Bank of Japan from June 2013 to June 2016.

“Through our strategic alliance with MUFG, Security Bank is able to continue its mission of providing BetterBanking services, be it through the products we offer to our clients or through giving back to communities in the Philippines. We are thankful that MUFG is our partner in this journey of promoting economic and community development in the Philippines,” says Sanjiv Vohra, President and CEO of Security Bank. 

“One of the primary reasons our partnership works so well is we are able to synergize our respective strengths and networks to better serve our clients and further contribute to the   growth of the financial services industry,” said Yuichi Yamagishi, MUFG Country Head for the Philippines. “As we embark on the next leg of our journey together, MUFG stands ready to share its global network and expertise so that this cross-border alliance will achieve greater success for the Philippine business community and society.” 

Bridging global expertise with local talent

MUFG and Security Bank’s strategic partnership has led to various business initiatives that bridged global expertise with local talent. Through MUFG’s global network, Security Bank was able to widen its horizons in various fields, which in return enhanced customer service and satisfaction. 

In 2017, MUFG and Security Bank launched the Interbank Fund Management Service (IBFM) that allowed customers to enjoy cost-free remittances. Under the IBFM, MUFG acts as the settlement bank by funding and moving excess and deficit funds for collections and disbursements without any remittance cost.

Present during the March 22, 2017 Memorandum of Agreement signing ceremony were the working teams from both banks headed by then Security Bank officers: President & CEO Alfonso Salcedo, Jr. (seated, third from left) and EVP & Wholesale Banking Segment Head Eduardo Olbes (seated, fourth from left) along with then MUFG Bank officers: Manila Branch’s General Manager Tatsuto Ishida (seated, second from left) and Deputy General Manager Nobuyuki Hokimoto (seated, first from left).

The ties between Security Bank and MUFG were also seen in the promotion of investment in the Philippines to support economic growth. The two companies held Business Matching Fairs in 2017 and 2018 among their clients, which resulted in more than 200 meetings in each event. In 2018, Security Bank and MUFG signed an agreement with the Board of Investments (BOI) to promote investments in the country by linking Philippine and Japanese investors together.

In 2020, both banks continued to leverage on their combined networks and capabilities to collaborate on various initiatives, such as facilitating the joint venture between Security Bank and another of MUFG’s strategic partners, Bank of Ayudhya (Krungsri) of Thailand, through SB Finance, which is focused on innovating in the personal loan segment in the Philippines and extending novel financing solutions to the segments in need. Recently, Security Bank and MUFG also signed an agreement that will allow MUFG clients to gain access to Security Bank’s award-winning Cash Management System, DigiBanker. 

Going beyond business partnerships

The benefits of the Security Bank-MUFG partnership go beyond business relations, as these also contribute to the community. In 2020, the two companies donated 100 million yen, or about Php 44 million, to the Association of Filipino students in Japan to support the education of those who are struggling with financial difficulties due to the COVID-19 pandemic.

L-R: Mr. Takayoshi Futae (MUFG Bank), Member of the Board, Senior Managing Executive Officer, Chief Executive, Global Commercial Banking Business Unit, Chief Operating Officer-International; Mr. Jose C. Laurel V (screen), Ambassador of the Republic of the Philippines to Japan; Representatives from the Association of Filipino Students in Japan (AFSJ) – Mr. Sean Patrick Jacob C. Razo (President), Mr. Christian Oliver Kalaw (Vice President for Internal Affairs), Ms. Ea Kristine Tulin (Vice President for Alumni Affairs), Mr. Clyde Co (Vice President for Socio-Cultural Affairs)

“Now, more than ever, this partnership is important to us as we navigate the challenges of this current environment and the post-COVID-19 era whilst continuing to help not just businesses but the communities we serve,” adds Vohra. 

Yamagishi says: “MUFG’s roots in Manila date back over 60 years and we are now one of the largest foreign bank branches in the country.  It is incumbent on us to build on this heritage and together with Security Bank, we will continue to support our clients and contribute to our communities with purpose and conviction.” 

On February 14, 2017, the two financial partners, together with SGV & Co. co-founder Washington SyCip unveiled the first Japanese garden at the heart of Makati Central Business District. The Japanese garden, named Tsuruki-En (Crane and Turtle) after the traditional symbols of long life, peace, and happiness, features a taste of Japanese culture and arts with its rustic landscape. The garden serves as a living symbol of the friendly relations and hearty cultural exchange between Japan and the Philippines

MUFG also partnered with Security Bank’s corporate social responsibility arm, Security Bank Foundation Inc. (SBFI) in 2018 to repaint some of the classrooms built by SBFI through its flagship CSR program, Build a School, Build a Nation: The Classrooms Project. Apart from that, the two lenders also joined hands in helping an orphanage in Bulacan by teaching them proper hygiene practices and refurbishing its garden to create a more conducive environment for children.

To find out more about Security Bank’s services and the world-class banking services of the MUFG network, you may visit www.securitybank.com or https://www.mufg.jp/english respectively. You may also visit Security Bank’s Facebook page at www.facebook.com/SecurityBank.