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PHL recovery seen V-shaped, 9.5% rise in 2021 — J.P. Morgan

THE Philippine recovery is expected to be V-shaped as the economy reopens in the second half of the year, after a record gross domestic product (GDP) contraction at the height of the lockdown, J.P. Morgan said.

The record contraction of 16.5% in the second quarter will bring the bank’s full-year growth forecast for the Philippines to -8%, downgraded from -4.4% previously, it said in a report issued Monday.

The Philippines is thus poised to post the worst economic contraction in Emerging Asia, followed by Malaysia, whose economy is expected to retreat by 7.7%, followed by Hong Kong (-7.4%), Thailand (-7.3%), India (-6.5%) and Singapore (6.2%). Meanwhile, China and Taiwan are expected to expand by 2.5% and 1% this year.

J.P. Morgan said it expects a “more pronounced V-shaped” recovery for the country, with a “large rebound” seen in the last two quarters of 2020 as quarantine rules ease and the output “returning to pre-COVID levels next year.”

It increased its 2021 growth forecast to 9.5% from 7.3% previously, which it said will be among the strongest in the region, assuming the uninterrupted further reopening of the economy.

“While we do expect a strong GDP growth rebound in the Philippines compared to its regional peers, this is premised on the knock-on impact on the economy of this week’s ending of stricter containment measures in the National Capital Region (NCR) following the recent acceleration in cases,” it said.

“The Philippine economy recorded the worst quarterly contraction on record last quarter, in part reflecting the imposition and subsequent extensions of COVID-19 containment measures. Given the 2Q GDP outturn, we now expect GDP to contract 8.0% y/y in FY2020, down from a previous forecast of -4.4%,” according to the report.

The economy plunged into recession after contracting by 16.5% in the second quarter, which included the months when the lockdown was at its strictest. The bank noted a collapse in demand, led by private consumption and investment.

However, there has been a “U-turn in the trajectory of economic activity and manufacturing production” after the second quarter, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said Tuesday.

“We are starting to see a U-turn in the trajectory of economic activity and manufacturing production. While we are not yet in positive territory, we are hoping that we can continue to manage this recovery as best as we can,” Mr. Chua was quoted as saying in a statement.

The bank said government borrowing has surged recently, but state spending “has not kept pace” with the growth in debt.

“As a result, the cash balances in the national government accounts have risen sharply, which implies that while public investment has not resumed at full capacity, a quick recovery may be attainable and could lead to a more material widening of the current deficit than we have incorporated in our forecasts,” it said.

It forecast headline inflation to settle at 2.6% this year, slightly higher than the 2.5% in 2019 but still within the 2-4% target set by the government.

Meanwhile, Mr. Chua said the multiplier effects of infrastructure spending and the additional funds allowed by the Bayanihan to Recover as One Act (Bayanihan II) will help with the country’s economic recovery.

Economic managers projected this year’s GDP to shrink by 4.5-6.6%. — Beatrice M. Laforga

ADB approves P6-billion loan for medical gear, protective equipment

THE Asian Development Bank (ADB) has approved a $125-million (P6 billion) loan to the Philippines for the procurement of medical equipment and personal protective equipment (PPE).

In a statement Wednesday, the bank said the loan will help the Department of Health (DoH) maintain a supply of such equipment and fund training programs for health workers.

“This project will help improve the preparedness and resilience of the country’s health systems at the national and local levels in handling current and future public health threats. It will also contribute to the Philippines’ efforts toward implementing universal health coverage,” ADB Vice-President Ahmed M. Saeed was quoted as saying.

The program that the loan will be supporting is known as the Health System Enhancement to Address and Limit (HEAL) COVID-19 Project.

HEAL will also help the government boost its capacity to testing, detect, and prevent threats to public health, according to Sakiko Tanak, a principal social sector specialist for Southeast Asia at the ADB.

The loan will fund the acquisition of electrocardiography machines and defibrillators for 17 major hospitals; ventilators for 17 DoH hospitals and 20 local government hospitals; computed tomography (CT) scan machines for 33 hospitals; test kits, chemicals, and reagents for at least 10 government molecular laboratories; and PPE for health workers and laboratory technicians.

“Health workers will also learn how to provide psycho-social support to patients and families, including pregnant women and other vulnerable groups affected by COVID-19,” it added.

In April the bank provided initial loans for the government’s COVID-19 (coronavirus disease 2019) response worth $1.5 billion.

As of Aug. 5, the government has obtained $8.131 billion via loans, global bond issues and grants from external sources to fund its pandemic expenses. The ADB was the top source among multilateral partners, lending $2.6 billion so far.

The ADB’s lending program for the Philippines this year will be a record $4.2 billion. Next year, it aims to lend another $4.118 billion, including a standby loan of $1 billion for the Bataan-Cavite Bridge project.

The bank is the country’s second biggest source of official development assistance. — Beatrice M. Laforga

ADB urges Philippines to cut reliance on remittances

DEVELOPING COUNTRIES like the Philippines should look into sovereign wealth funds or “diaspora bond” issues to offset possible declines in remittances when major crises disrupt the overseas labor market, the Asian Development Bank (ADB) said.

As “over-reliance on remittances” exposes economies to external shocks and volatility, Matteo Lanzafame and Irfan A. Qureshi, economists at ADB’s Economic Research and Regional Cooperation Department, urged countries to take precautions that will help them stay resilient if cash from overseas workers dries up suddenly.

They said countries could park a portion of any taxes collected on remittances into a fund that will help cushion the blow of reduced remittances as the population ages and fewer people go overseas to work.

“This is particularly relevant for countries such as the Philippines, which have typically had large shares of population migrating abroad at a young age but returning when they retire. Financial instruments akin to the so-called “diaspora bonds” appear suitable as a means to promote intergenerational sharing of the benefits from remittances,” Mr. Lanzafame and Mr. Qureshi said in a blog on Monday.

They said diaspora bonds are aimed to channel the savings of migrant workers “in the adoptive countries towards capital markets in the home economy.”

They cited Norway’s oil-based sovereign fund which serves as a buffer against fluctuating prices of commodities.

“Remittance-dependent economies can consider instruments to hedge against sudden shortfalls in remittance flows,” they added.

The Philippines is among the top recipients of remittances in Asia and the Pacific.

During the financial crisis in 2008-2009, they said remittances were not spared when the global economy slowed down, causing cash sent home to drop by 5%.

“Remittances failed to play their typical role as a stabilizing mechanism since not only recipients but also senders were affected — and it appears this will be the case for the COVID-19 pandemic as well,” they said.

The ADB projected overseas Filipino remittances to drop up to 20.2% this year assuming a one-year normalization period after the crisis.

Remittances rose 7.7% in June, after a 19% drop in May. In the first half, remittances fell 4.2%.

“Countries must therefore adopt a multi-pronged strategy to deal with shortfalls in remittance flows during critical times, such as the current crisis,” they said.

They said governments can also roll out a more urgent support to mitigate the impact on remittance-reliant families through cash handouts and low-interest loans. — Beatrice M. Laforga

DoF cites Small Business Wage Subsidy as model for digitized cash aid

FINANCE SECRETARY Carlos G. Dominguez III said the government’s various cash aid initiatives can follow the lead of the Small Business Wage Subsidy (SBWS) program in adopting electronic fund transfers, which he said reduces opportunities for corruption.

At a recorded meeting aired Tuesday, Mr. Dominguez said the (SBWS) was implemented in April-June and resulted in the transfer of P46 billion in cash aid via the Social Security System (SSS) to help small firms retain more than 3.1 million workers.

He said future subsidy programs should be digitized starting at the application level, with funds handed out via banks or electronic wallets (e-wallets). He added that implementing agencies should partner with private entities if possible.

“We think all subsidy programs in the future should be digitized. In other words, go through digitalization of all transactions. And number two, the direct distribution of aid should be through banks or e-wallet accounts of the intended beneficiaries,” he said.

“And one of the most important factors that made this a relatively successful program, is close administration oversight of the critical steps of the program,” he added.

President Rodrigo R. Duterte said at the same meeting he is in favor of digitizing  subsidy programs to reduce corruption as it eliminates human intervention.

SBWS was jointly implemented by the Department of Finance, the SSS and the Bureau of Internal Revenue (BIR).

The government also tapped banks and private entities to help with the release of cash, including mobile wallet PayMaya, Union Bank of the Philippines, Inc. (UBP) and remittance center M Lhuillier Financial Services.

“So you have a problem, bring in the private sector to help you and you can solve it very quickly. But (it is important) that every day you’re on top of the situation. Do not let any problem grow big. Kasi pag malaki na, mahirap ng i-correct (because if the issue grows, it is harder to resolve),” Mr. Dominguez said.

The subsidy program used the database of the BIR and the SSS to verify the eligibility of employers and the authenticity of beneficiaries. Upon verification, the names and details of the recipient workers were sent electronically to the Development Bank of the Philippines, which facilitated the payouts through PESONet to banks and other channels.

The government was able to approve the applications of 113,449 employers for the program. — Beatrice M. Laforga

PHL should look beyond infrastructure as supply chains shift — Moody’s

THE Philippines is a potential beneficiary of shifting supply chains after the pandemic, but it needs to look beyond its infrastructure focus and leverage its strong fiscal position to develop its human capital, Moody’s Investors Service said.

The Philippines and Indonesia were fast-growing prior to the pandemic due to their young populations, but developing human capital will be more significant as suppliers reconfigure their manufacturing networks.

“Greater traction on the government’s infrastructure development program and initiatives to improve human capital development will bolster the country’s long-term growth outlook as well as investment prospects,” according to Deborah Tan, an Associate Vice-President and Analyst at Moody’s Credit Strategy and Research Group, said in an e-mail Wednesday.

She added that in other factors considered by manufacturing locators, like trade policy, regulation, wage costs and logistics, the Philippines is at a disadvantage relative to ASEAN.

The Philippines was focused on building up its infrastructure prior to the pandemic and is banking on such spending to drive its recovery in 2021. The government-backed Build, Build, Build program includes 92 infrastructure projects worth P4.4 trillion.

Moody’s said in a note that the Philippines, with a 66% enrolment rate in secondary education, is trailing other emerging-market economies like Indonesia (76%), Poland (93%), and Brazil (82%).

Moody’s added that ASEAN could take advantage of the shift in manufacturing locations by further boosting its own trading networks within the region.

“As its middle-class population grows, household purchasing power will rise and become a significant driver of consumption and investment. But the region will need to address structural challenges to harness its full potential,” Moody’s said.

The Philippines’ main attraction to investors is the young and growing workforce and strong policy position, Ms. Tan said.

“The country also has a stronger fiscal position relative to some of the ASEAN economies — that gives the government more space in terms of supporting policy reforms and encouraging private-sector investment,” she said. — Luz Wendy T. Noble

Energy experts urge expedited transition to renewable power

THE Philippines must pick up the pace of its transition to clean power if it wants to make unacceptably risky for developers to build facilities running on fossil fuel, according to energy industry experts.

With renewable power now making up most of the Philippines’ new generating capacity, the risk grows for builders of baseload coal-fired plants, whose facilities could become stranded assets over the next decades, according to Alberto R. Dalusung III, the energy transition advisor of non-profit group Institute for Climate and Sustainable Cities.

“We have to move quickly and recognize that the (energy) transition is happening,” he said in a virtual briefing.

In 2019, President Rodrigo R. Duterte ordered the Department of Energy (DoE) to accelerate the development of renewable energy. The department nevertheless maintained its technology-neutral stance in augmenting power capacity coming from various resources — from dirty ones to cleaner sources.

The grid is now being increasingly powered by clean energy, while the use of coal is dwindling, Sarah Jane Ahmed of the Institute for Energy Economics and Financial Analysis (IEEFA) noted.

“I believe we already are and we see many transitions taking place. We’re seeing a transition in island grids to micro-grids with a portfolio of energy, including renewables. And on the main grid, we’re seeing that coal utilization rates are going down because of renewables coming onto the grid,” the analyst said.

“It is important that the government and the regulator get in front of this to help the country navigate this transition,” Ms. Ahmed added.

Electricity tariffs in the Philippines are among the most expensive in Southeast Asia, IEEFA said. It blamed this on inflexible contracts with baseload fossil fuel-fired plants.

In 2019, coal still accounted for 10,417 megawatts (MW) with renewable power at around 7,400 MW or 29% of the total, which the DoE said is well above target for clean energy in the region. — Adam J. Ang

Rice farmer incomes, yields improve due to RCEF — study

RICE farmers’ incomes and yields are rising as a result of programs supported by the Rice Competitiveness Enhancement Fund (RCEF), according to a survey conducted by the Philippine Rice Research Institute (PhilRice).

PhilRice surveyed more than 4,000 RCEF beneficiaries across 55 provinces who harvested an average of 4.14 metric tons (MT) per hectare.

Respondents reported an additional yield of 440 kilograms per hectare were realized after farmers used certified inbred seed distributed by PhilRice under the RCEF program.

PhilRice’s Socio-Economics Division Chief Jesusa C. Beltran said the increase in output, assuming an average price of P17 per kilogram of dry palay, translates to nearly P7,500 per hectare in additional earnings.

Ms. Beltran said that due to higher income, farmers and their families have been able to weather the financial difficulties caused by the coronavirus disease 2019 (COVID-19) pandemic.

PhilRice said 97% of respondents reported receiving additional information about farming methods provided by PhilRice during the seed distribution activities.

Between March and July, PhilRice distributed more than two million bags of certified inbred seed to 750,000 farmers, who were tilling more than 855,000 hectares.

“With more farmers reached this wet season, a more positive outlook in rice production is expected this second semester under favorable weather conditions,” PhilRice RCEF Program Management Office Director Flordeliza H. Bordey said.

Citing data from the Philippine Statistics Authority, PhilRice said palay production during the first half rose 1.5% year on year to 8.39 million MT.

Agriculture Secretary William D. Dar said the findings are evidence that farming, with the right inputs and technology, can be profitable.

“We believe our joint efforts — in partnership with farmers, local government units and the private sector — are paying off, and thus we will vigorously implement the RCEF program in the succeeding years through 2025,” Mr. Dar said. — Revin Mikhael D. Ochave

China’s Xi warns of ‘turbulent change’ as external risks rise

BEIJING — Chinese President Xi Jinping warned that the world’s second-biggest economy is facing a period of ‘turbulent change’ and that rising external markets risk required policy makers to increasingly rely on domestic demand to spur growth.

Mr. Xi, chairing a seminar on Monday with a group of policy advisors and state economists, discussed the country’s mid- to long-term economic trends in preparation for the drafting of the 14th Five-year plan.

The five-yearly economic blueprint is expected to be unveiled in the annual parliament meeting next year, and Mr. Xi said China must be prepared for “a period of turbulent change” as the coronavirus pandemic has accelerated protectionism, hammered the world economy and disrupted supply chains.

“In the coming period, we will face more and more headwinds in the external environment, and we must be prepared to deal with a series of new risks and challenges,” he said, according to comments released by state news agency Xinhua late Monday night.

Mr. Xi said the domestic market will “dominate the national economic cycle” in the future, but vowed to further open up China’s economy.

While Mr. Xi didn’t make direct references to intensifying US-China tensions, he signaled China’s willingness to work on issues with the US.

“We must actively cooperate with all countries, regions and enterprises who are willing to cooperate with us, including states, localities and enterprises in the United States,” he said.

The US and China have been engaged in nearly two years of tit-for-tat tariffs and angry rhetoric, with tensions between the two economic superpowers spilling into other areas.

The US has sanctioned companies and individuals linked to a security crackdown in Hong Kong and human rights, banned a Chinese owned video app, penalized Chinese academics and closed Beijing’s consulate in Houston in recent months.

Mr. Xi also stressed the importance of technological innovation, adding without elaborating that China must “make breakthroughs in key core technologies as soon as possible.” — Reuters

Trump, Republicans paint dire portrait of America under Biden

CHARLOTTE, N.C. — President Donald Trump and his fellow Republicans opened their national convention on Monday by painting a dire portrait of America if Democrat Joe Biden wins the White House in November, arguing he will usher in an era of radical socialism.

Mr. Trump set the tone early in the day when he addressed Republican delegates in Charlotte, North Carolina, after formally securing the party’s nomination for another term, and claimed without evidence that Democrats were trying to steal the election.

Republicans had vowed to offer an inspiring, positive message in contrast to what they characterized as a dark and gloomy Democratic convention last week. But the first night’s prime-time program featured speakers who peppered their remarks with ominous predictions if Democrats win power.

“They’ll disarm you, empty the prisons, lock you in your home and invite MS-13 to live next door,” US Representative Matt Gaetz, one of Mr. Trump’s staunchest backers in Congress, said, referring to an international criminal gang.

The four-day convention got under way at a critical juncture for Mr. Trump, who trails Biden in national opinion polls during a pandemic that has killed more than 176,000 Americans, erased millions of jobs and eroded the president’s standing with voters.

Mr. Trump has focused on a “law and order” message in response to widespread protests following the police killing of George Floyd, a Black man in Minneapolis, and he has pushed schools and businesses to reopen despite the pandemic. Both messages represent the campaign’s effort to win back suburban voters, especially women, who have abandoned the Republican Party in droves during the Trump era.

Donald Trump, Jr., the president’s oldest son, portrayed the ongoing civil unrest as violent assaults on small businesses by anarchists and said Democrats would fail to keep neighborhoods safe.

The convention’s opening night also laid out what promises to be a central theme of the week: that Biden, a former vice president, and his running mate, US Senator Kamala Harris, will merely be puppets of radical left-wing activists.

Multiple speakers accused Mr. Biden of wanting to defund the police and ban fracking, though he has rejected both positions.

Another frenetic day for Mr. Trump threatened to overshadow his attempt to recalibrate the campaign, however. In Washington, congressional Democrats examined US Postmaster General Louis DeJoy, a Mr. Trump donor, over whether he was deliberately sabotaging mail service to harm voting by mail, while one of Mr. Trump’s closest advisers, Kellyanne Conway, prepared to depart the White House.

The New York attorney general’s investigation into Trump’s family business deepened on Monday, while the National Guard was deployed in Wisconsin following unrest after a Black man was shot in the back by police.

A Reuters investigation revealed a sex scandal involving evangelical leader Jerry Falwell, Jr., a high-profile Trump supporter, whose tenure at the Christian university he runs appeared in limbo.

In contrast to the Democratic convention, which featured three former presidents, the Republican event does not include former Republican President George W. Bush, who has declined to endorse Trump’s reelection.

Mr. Biden, 77, and his fellow Democrats portrayed Mr. Trump, 74, as a force for darkness, chaos and incompetence during their convention, while stressing the Democrats’ diversity and values like empathy and unity.” — Reuters         

Facebook blocks group critical of Thai monarchy amid pressure

BANGKOK — Facebook blocked access within Thailand to a group with 1 million members that has criticized the country’s king, but said it was planning a legal challenge to the government’s demand that it block the group.

The move comes amid near daily youth-led protests against the government led by the former military junta chief and unprecedented calls for reforms of the monarchy.

The “Royalist Marketplace” group was created in April by Pavin Chachavalpongpun, a self-exiled academic and critic of the monarchy.

On Monday night, the group’s page brought up a message: “Access to this group has been restricted within Thailand pursuant to a legal request from the Ministry of Digital Economy and Society.”

Pavin, who lives in Japan, said Facebook had bowed to the military-dominated government’s pressure.

“Our group is part of a democratization process, it is a space for freedom of expression,” Pavin told Reuters.

“By doing this, Facebook is cooperating with the authoritarian regime to obstruct democracy and cultivating authoritarianism in Thailand.”

Pavin’s new group of the same name already had over 455,000 members on Tuesday.

Facebook said on Tuesday it was planning to legally challenge the Thai government after being “compelled” to block access to the group.

“Requests like this are severe, contravene international human rights law, and have a chilling effect on people’s ability to express themselves,” a Facebook spokesperson said.

“We work to protect and defend the rights of all internet users and are preparing to legally challenge this request.”

Thailand’s lese majeste laws, which forbid defaming the king, with penalties of up to 15 years in prison, is often the basis for such requests to block or remove content on social media platforms.

Earlier this month, Thailand’s digital minister accused Facebook of not complying with requests to restrict content, including insults to the monarchy.

On Aug. 10, he gave Facebook 15 days to comply with court takedown orders or face charges under the local Computer Crime Act, which carries a fine of up to 200,000 baht ($6,367.40) and an additional 5,000 baht ($159.18) per day until each order is observed.

Digital ministry spokesman Putchapong Nodthaisong said on Monday that Facebook cooperated before the deadline because it understood the context of Thai society.

Putchapong did not comment on Facebook’s plan for legal action when asked by Reuters on Tuesday.

The ministry last week filed a separate cybercrime complaint against Pavin for creating the group. — Reuters

TikTok sues Trump to challenge US restrictions

TIKTOK asked a federal judge to block the Trump administration from enacting a ban on the fast-growing social media network, bringing a geopolitical fight over technology and trade into a US courtroom.

TikTok and its Chinese parent, ByteDance Ltd., sued on Monday in federal court in Los Angeles to challenge an Aug. 6 order from President Donald Trump prohibiting US residents from doing business with TikTok. Mr. Trump says TikTok is a security risk for user data. The company said the president’s decision was made “for political reasons,” is unconstitutional and violates rights to due process.

While the order doesn’t take effect for weeks, it has escalated tensions between the US and China. On Aug. 14, Mr. Trump ordered ByteDance to sell its US assets and said the US should receive a cut of the proceeds. Microsoft Corp. and Oracle Corp. have already shown interest in buying TikTok, which argues it poses no security threat.

Mr. Trump’s actions would “destroy an online community where millions of Americans have come together to express themselves, share video content and make connections with each other,” TikTok said. “The President has taken plaintiffs’ property without compensation.”

The White House did not comment on the lawsuit.

TikTok, a platform for creating and sharing short videos, has grown rapidly in the US from about 11 million monthly active users in January 2018 to 100 million today, according to the filing. Global usage has risen to almost 2 billion from 55 million in January 2018, it said.

TikTok has sought to distance itself from China and pushed back on the argument that it presents a threat to user data. In the lawsuit, the company said it has “taken extraordinary measures to protect the privacy and security of TikTok’s US user data.”

Those moves included storing data in the US and Singapore, segregating TikTok data from other ByteDance offerings and appointing a US leadership and content moderation team that is “not subject to Chinese law.”

Mr. Trump’s decision to force the sale of ByteDance’s US assets was based on an investigation by the Committee on Foreign Investment in the US. Decisions by the interagency panel, which is led by the Treasury Department, are all but impossible to overturn in court.

TikTok and ByteDance said in the lawsuit that they provided the committee with “voluminous documentation,” including about security measures. Yet the administration “ignored” the information, and the committee “repeatedly refused to engage with ByteDance and its counsel about CFIUS’s concerns,” TikTok said.

The suit comes as Mr. Trump steps up his campaign against China, betting it will help him win November’s election despite upsetting millions of younger TikTok users. Secretary of State Michael Pompeo has urged American companies to bar Chinese applications from their app stores, part of his “Clean Network” guidance designed to prevent authorities in China from accessing the personal data of US citizens.

TikTok suggested that Mr. Trump’s actions amounted to payback against the network for providing a platform for those who oppose him. It cited an incident in June, when TikTok users claimed they coordinated mass ticket reservations and inflated projected attendance for a Trump rally in Tulsa, Oklahoma, so that many of the seats ended up empty. Mr. Trump’s reelection campaign has recently run online advertisements targeting the network, asking supporters to “sign the petition now to ban TikTok.”

Mr. Trump made his move under the International Emergency Economic Powers Act, a 1977 law that allows the president to declare a national emergency in response to an “unusual and extraordinary threat,” which authorizes him to block transactions and seize assets.

UPHILL FIGHT
The legal challenge faces an uphill fight, according to James Dempsey, executive director of the Berkeley Center for Law and Technology at the University of California, Berkeley. Courts don’t generally review the President’s determinations on questions of national security, Mr. Dempsey said.

But the company may be successful with a due process argument, Mr. Dempsey said.

“If there were ever a case to challenge the President on using national security powers without an adequate basis, this may be the one,” he said. “A First Amendment challenge is also possible, but TikTok will have to establish that it has a First Amendment right to be on the phones of Americans or that TikTok is a publisher, separate from the First Amendment rights of its users.”

Mr. Trump has threatened penalties on any US resident or company that conducts transactions with TikTok or WeChat, a popular Chinese messaging app, saying that having Americans’ personal data exposed to China creates a national security risk. The apps could get bumped off Apple, Inc.’s and Google’s app stores.

“This executive order risks undermining global businesses’ trust in the United States’ commitment to the rule of law, which has served as a magnet for investment and spurred decades of American economic growth,” TikTok said in a statement hours after Mr. Trump’s order was issued. “And it sets a dangerous precedent for the concept of free expression and open markets.”

A TikTok employee joined the fight on Monday, saying the government action would unconstitutionally deprive him of a job. Patrick Ryan filed a lawsuit in federal court in San Francisco, hours after the company filed its own constitutional challenge in federal court in Los Angeles.

On Friday, a group of WeChat users sued in San Francisco federal court saying Trump’s ban on the messaging app violated their right of free speech and due process rights because it doesn’t provide notice of the specific conduct that’s prohibited.

The case is TikTok v. Donald Trump, 20-cv-7672, US District Court, Central District of California (Los Angeles). — Bloomberg

PBA looking at bubble in tournament return

PBA OFFICIALS said that the league is looking at following the lead set by the National Basketball Association and have a single venue to host teams and all the matches in the event that the league returns this year. — PBA IMAGES

By Michael Angelo S. Murillo, Senior Reporter

WITH team workouts resuming on Tuesday, the Philippine Basketball Association (PBA) is mulling its next moves in its return-to-activities, including the possibility of mounting a league bubble that would host the resumption of the currently suspended season.

In their online Philippine Sportswriters Association forum session on Tuesday, PBA officials Ricky Vargas (chairman) and Willie Marcial (commissioner) shared that the league is looking at following the lead set by the National Basketball Association (NBA) and have a single venue to host the teams and all the matches in the event that the league returns this year.

The PBA suspended its Season 45 in March because of the coronavirus pandemic and is angling for an October resumption.

“We don’t have a choice. We already have a model, that of the NBA. We should just go ahead and move forward and look forward to the time that we could play,” said Mr. Vargas, who represents the TNT KaTropa in the league board.

The NBA resumed on July 31 at the ESPN Wide World of Sports Complex in Orlando, Florida, after suspending its own season for four months and is proving to be successful as not one case of the coronavirus has been reported to date.

For the planned PBA bubble, among the places being considered for it are the Smart-Araneta Coliseum in Quezon City, Clark in Pampanga and the Inspire Sports Academy in Laguna.

Also being considered as locations are Batangas and Subic, Zambales.

“We have been talking to different people for possible bubble locations. I will lay everything to the board so we can decide which is the best option to take,” Mr. Marcial said.

But while the bubble is looming to be a suitable direction for the league in light of the health crisis, Mr. Vargas admits that it entails challenges, foremost of which financially.

“For the NBA bubble, I think the league financed the cost of some $180 million. Here we’ll see if the PBA can shoulder the cost of the bubble or if it will need the help of the teams,” said Mr. Vargas.

The PBA officials said the planned bubble will be discussed in the next board meeting along with other matters.

The league suspended its Season 45 on March 11 with only one game played in the Philippine Cup, that between the San Miguel Beermen and Magnolia Hotshots Pambansang Manok, which the former won, 94-78.

On Tuesday, after some delay the PBA finally pushed through with its team workouts, the first phase in its push to resume its currently suspended season.

Mr. Marcial said teams that already began their workouts were Barangay Ginebra, Rain or Shine, Alaska, Blackwater and San Miguel. The rest of the field are set to do theirs anytime this week.

“This is a good start. We are ready to do what we have to do. I think most teams are beginning to practice following the very strict protocols that have been set up by the PBA and the Board of Governors,” said Mr. Vargas.

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