Home Blog Page 8518

Former US Secretary of State George Shultz dies at age 100

WASHINGTON — George Shultz, the US secretary of state who survived bitter infighting in President Ronald Reagan’s administration to help forge a new era in American-Soviet relations and bring on the end of the Cold War, died on Saturday at age 100, the California-based Hoover Institute said.

A man of broad experience and talents, Shultz achieved success in statesmanship, business and academia. Lawmakers praised him for opposing as sheer folly the sale of arms to Iran that were the cornerstone of the Iran-Contra scandal that marred Reagan’s second term in office.

His efforts as America’s top diplomat from 1982 to 1989 under the Republican Reagan helped lead to the conclusion of the four-decade-long Cold War that began after World War Two, pitting the United States and its allies against the Soviet Union and the communist bloc and generating fears of a global nuclear conflict.

“He focused on the possibilities of what could be, unhindered by the impasses or deadlocks of the past. That was the vision and dedication that helped guide our nation through some of its most dangerous periods and ultimately helped create the opening that led to the end the Cold War,” President Joe Biden said in a statement.

Shultz, a steady, patient and low-key man who became one of the longest-serving secretaries of state, steered to completion a historic treaty scrapping superpower medium-range nuclear missiles and set a pattern for dealings between Moscow and Washington that made human rights a routine agenda item.

He achieved the rare feat of holding four Cabinet posts, also serving as secretary of the Treasury, as secretary of labor and as director of the Office of Management and Budget.

His record as secretary of state was tempered by his failure to bring peace to the Middle East and Central America, areas in which he personally invested considerable effort.

Shultz remained active into his 90s through a position at Stanford University’s Hoover Institution think tank and various boards. He also wrote books and took stands against the Cuban embargo, climate change and Britain’s departure from the European Union.

His most recent book, written with James Timbie, a longtime State Department adviser and published in November 2020 ahead of Shultz’s 100th birthday, was entitled “A Hinge of History.” It suggested the world was at a pivot point not unlike the one it faced at the end of World War Two.

“We seem to be in an upset state of affairs where it’s hard to get things accomplished,” he told the New York Times, lamenting the Trump administration’s resistance to international accords. “They seem to be skeptical of these agreements, of any agreement. Agreements aren’t usually perfect. You don’t get everything you want. You compromise a little bit. But they’re way better than nothing.”

SERVED EISENHOWER, NIXON BEFORE REAGAN
Before joining the Reagan administration, the New York City native served in senior positions under Republican President Richard Nixon, who made him labor secretary (1969–70), the first director of the White House Office of Management and Budget (1970–72) and Treasury secretary (1972–1974). He previously was on Republican President Dwight Eisenhower’s Council of Economic Advisers.

Shultz’s background was in economics. After leaving the Nixon administration in 1974, he went to Bechtel Corp, the international construction firm, eventually becoming its president. He stayed there until Reagan asked him to replace Alexander Haig, who resigned under pressure as secretary of state in 1982.

Shultz was unable to stop the arms-for-hostages deals with Iran that generated funds for the Contra rebels fighting against Nicaragua’s leftist government. He did help broker agreements that eased the disputes of Nicaragua’s civil war.

The arms sales to Iran came during an arms embargo on that country. The proceeds from the sales were secretly diverted to the Contra rebels at a time when Congress had banned such funding. National security adviser John Poindexter and aide Lieutenant Colonel Oliver North took the blame for the scheme.

Shultz told a 1987 congressional hearing that he was lied to repeatedly by the head of the CIA and Reagan’s national security advisers who withheld information from him and the president in order to keep the Iran arms sales going.

Shultz previously had advocated support for the US-backed Contra rebels, known to Reagan’s team as “freedom fighters.”

Asked whether the United States had benefited from the Iran-Contra efforts to fund the rebels, Shultz bluntly told lawmakers: “I don’t think desirable ends justify means of lying, deceiving, of doing things that are outside our constitutional processes.”

He said he threatened to resign three times during the scandal. But, believing Reagan needed him, Shultz stayed to try to mend the damage to US foreign policy. His price: reassertion of State Department power over foreign policy.

RIVALRY WITH WEINBERGER
Shultz steadily accumulated power, sometimes at the expense of Defense Secretary Caspar Weinberger, a Reagan confidant once seen as his chief administration rival.

He won control of policy in the Middle East, resulting in a diplomatic campaign to isolate Iran that led to a U.N. ceasefire order in the lengthy Iran-Iraq war. Shultz’s tough stance was adopted by Reagan when US planes bombed targets in Libya in April 1986 over Weinberger’s opposition.

Weinberger won and Shultz lost when Reagan opted in 1986 not to be bound by the unratified 1979 SALT-2 arms control treaty.

In achieving the intermediate-range nuclear forces treaty in 1987 and helping forge new relations with the Kremlin, Shultz prevailed over hard-liners. The Cold War ended in 1989 after he had left office and the Soviet Union broke up in 1991.

Shultz had degrees from Princeton University and the Massachusetts Institute of Technology and taught at MIT and the University of Chicago. Following his State Department stint, Shultz became an economics professor at Stanford.

Born in New York on Dec. 13, 1920, the son of a historian, Shultz joined the Marine Corps in World War Two. He met Army nurse Helena O’Brien in the Pacific and they were married in 1946 and had three daughters and two sons.

A man of usually impassive demeanor, Shultz was an enigma to the public and intimates alike. Revealing moments were rare, such as when State Department colleagues bid him an emotional farewell on Jan. 19, 1989, at the end of Reagan’s presidency.

Visibly moved, he clutched the arm of his wife, who accompanied him on his many travels. “We came as a package deal and we leave as a package,” Shultz said.

Helena died in 1995 and Shultz married San Francisco socialite Charlotte Mailliard Swig in 1997.

He had a love of dancing, swimming, tennis and quirky clothes, such as a peach-colored sports coat and multicolored golf slacks.

His most tantalizing accoutrement was said to be a tiger tattoo on his left buttock, a souvenir of his student days at Princeton University, whose mascot is a tiger. Shultz was coy about whether he really had one, but he did not deny it. — Reuters

Tom Brady gets 7th ring as Bucs trample Chiefs in Super Bowl LV

TAMPA BAY BUCCANEERS QUARTERBACK TOM BRADY (12) celebrates with the Vince Lombardi Trophy after beating the Kansas City Chiefs in Super Bowl LV at Raymond James Stadium. — REUTERS

TOM Brady claimed his seventh Super Bowl ring Sunday, passing for 201 yards and three touchdowns as the Tampa Bay Buccaneers throttled the Kansas City Chiefs 31-9 at Tampa.

Brady wasted no time putting the Bucs in position for their second Super Bowl title and first since the 2002 season by firing three first-half touchdowns en route to a 21-6 halftime lead.

The early onslaught included a patented drive inside the final minute that he capped with a one-yard strike to Antonio Brown with six seconds left. Rob Gronkowski grabbed two touchdowns to pad the postseason record for scoring connections from Brady to 14. The pair came into the game tied at 12 with the Hall of Fame duo of Joe Montana and Jerry Rice. Gronkowski had six grabs for 67 yards.

A 27-yard TD run in the third quarter by Leonard Fournette, who recorded 89 yards on 16 touches, made it 28-9. That TD helped ice the outcome as the Bucs constantly pressured the Chiefs’ Patrick Mahomes, who suffered his worst NFL defeat.

Kansas City settled for three field goals by Harrison Butker.

Mahomes finished just 26 of 49 for 270 yards. He had two interceptions, a pick by Antoine Winfield that led to a third-quarter Tampa Bay field goal and the second with a minute remaining by Devin White.

The 43-year-old Brady, who won six Super Bowl championships with New England, added to his age-defying legacy by engineering Tampa Bay to a title in his first season quarterbacking an NFC team. He received his fifth Super Bowl MVP award, adding to his own record.

Afterward, Brady said, “We’re coming back.”

Playing behind a patchwork line missing two starting tackles, Mahomes was hobbled by a lingering turf toe he injured in the divisional round. He scrambled for 33 yards. Travis Kelce led the Chiefs with 10 receptions for 133 yards. The Chiefs committed 11 penalties, eight in the first half.

Making his 10th Super Bowl appearance, Brady engineered a touchdown in the first quarter of the game for the first time by tossing an 8-yard score to Rob Gronkowski.

Brady, who went 16-for-20 for 140 first-half yards, added a 17-yard touchdown pass to Gronkowski after an offsides penalty against the Chiefs prompted Tampa Bay to take a field goal off the board.

Taking over with just 55 seconds left, he directed a 71-yard march, aided by two pass interference calls against Kansas City. The second came in the end zone, allowing the Bucs a chance from the 1-yard line, which Brady cashed by finding Brown with six seconds remaining.

Mahomes started 3-for-12 before finishing 9 of 19 for just 67 yards passing in the half. Reuters

New local volleyball federation officially recognized by international governing body

By Michael Angelo S. Murillo, Senior Reporter

NEWLY formed Philippine National Volleyball Federation, Inc. (PNVFI) has been officially recognized by the sport’s international governing body.

On the final day of its world congress done online on Sunday, the International Volleyball Federation (FIVB) moved to accept the Ramon Suzara-headed PNVFI to its fold and make the latter Philippine volleyball’s legitimate representative.

A total of 155 national federations out of a possible 190 votes approved the FIVB’s recognition of the PNVFI.

Out of a possible 190 votes, three said no, 13 abstained and 20 said they did not receive the question.

Before recognizing the PNVFI, the FIVB asked its members to vote on the PNVFI’s election as Philippine volleyball’s representative in the federation held on Jan. 25 that was overseen by the Philippine Olympic Committee (POC).

FIVB members had to answer the question, “Do you recognize the elections of the PNVFI last January 25?” The result was 151 yes, five no, 16 abstained and 18 said they did not receive the question.

With the recognition, the PNVFI replaced the Philippine Volleyball Federation (PVF) as an affiliate of FIVB.

The international federation, too, asked the members’ decision on the expulsion of the PVF as an affiliate, getting 138 yes votes, 16 no votes, 15 abstention while 22 said they did not receive the question.

PNVFI also took over from the Larong Volleyball sa Pilipinas, Inc. (LVPI), which was the local volleyball governing body recognized by the POC.

“The entire PNVF Board wishes to thank the FIVB and all the confederations for the overwhelming support during the 37th Congress,” PNVFI’s Suzara said in a statement.

“We now proudly banner the honor and the responsibility of being affiliated to both the international federation and the Asian Volleyball Confederation (AVC),” he added, referring to the Asian volleyball body which already gave its approval to the PNVFI earlier.

Mr. Suzara also thanked the POC for heeding the call of the FIVB to settle once and for all the leadership issue in Philippine volleyball through an election.

Through letters sent by the FIVB to POC President Abraham Tolentino, the international federation reiterated the need to elect a legitimate national sports association lest the country risk not being able to send national teams to FIVB-sanctioned tournaments.

LVPI was recognized by the POC since 2015 as the national federation for the sport, but was contested by the PVF.

“Now, our work begins to fulfill our singular commitment to all stakeholders. At PNVF, we serve volleyball,” reiterated Mr. Suzara.

Other other officials of the PNVFI are Arnel Hajan (vice-president), Ariel Paredes (chairman), Donaldo Caringal (secretary-general), Rod Roque (treasurer), Yul Benosa (auditor) and board members Ricky Palou, Tony Boy Liao, Karl Chan, Charo Soriano, Carmela Gamboa, Fr. Vic Calvo, and Atty. Wharton Chan.

Olympics-bound Obiena snatches another gold medal in Germany

TOKYO OLYMPICS-BOUND POLE VAULTER EJ OBIENA of the Philippines won back-to-back gold medals in Germany at the weekend.

TOKYO Olympics-bound pole vaulter EJ Obiena of the Philippines sustained his solid start in the 2021 campaign, winning another gold medal in Dortmund, Germany, on late Sunday (Manila time).

Mr. Obiena, 25, cleared 5.65 meters, tied with Germany’s Oleg Zernikel, before beating the latter in a jump-off with 5.68 meters to claim the top hardware at the PSD Indoor Meeting.

Also clearing 5.65 meters was German Torben Blech, but he needed more attempts to do so, relegating him to third place.

The win completed a solid showing for Mr. Obiena at the weekend, which also saw him win gold at the ISTAF Berlin Indoor Meet also in Dortmund, where he cleared 5.80 meters, a new national mark.

Mr. Obiena kicked off his bid for the new season last month by clearing 5.62 meters at the Karlsruhe Indoor Meet.

The decorated pole vaulter is currently one of four Filipino athletes already qualified for the rescheduled Olympic Games in Tokyo later this year. The others are gymnast Caloy Yulo and boxers Eumir Felix Marcial and Irish Magno.

Mr. Obiena is competing in various tournaments as part of his preparation for his Olympic quest, where he has the chance to get the distinction as the first athlete to give the Philippines its first-ever Olympic gold medal.

He is still eyeing more competitions in the lead-up to the Olympics, including one this week in France. — Michael Angelo S. Murillo

WNBL draft order settled after lottery at the weekend

A WEEK before the first-ever draft of the Women’s National Basketball League (WNBL) takes place, the league held a virtual draft lottery to pick the order of selections on Sunday evening.

The inaugural draft set for Feb. 13 though will be unique in the sense that the teams in the first-ever women’s professional basketball league in the country will not be picking in every round.

This, after all the teams were given a chance to “protect” at most seven players. Guest team Go for Gold-Philippine Navy Lady Sailors were not part of the lottery since all of their players must be enlisted armed forces members.

For only protecting three players, Glutagence Glow Boosters had 12 picks — including being the only team allowed to draft in the first two rounds.

Stan Quezon Lady Spartan protected five players giving them 10 picks, Pacific Water Queens had six protect players giving them nine picks, while WNBL original Parañaque Lady Aces had seven players signed that resulted in the team getting just eight picks.

Two more teams are expected to give the league’s office their proper papers this week. The first team to accomplish the task will be awarded the remaining picks in each round, still subject to the number of protected players they submit.

In the third round of the draft, Glutagence once again picks first followed by Stan Quezon. The fourth round will see Stan Quezon, Pacific Water, and Glutagence pick, in that order.

The fifth round has Stan Quezon picking first anew then Pacific Water, Parañaque, and Glutagence. Parañaque picks first in the sixth round followed by Glutagence, Pacific Water, and Stan Quezon.

Again in the seventh round, the Aces get first dibs while following suit are Lady Spartans, the Queens, and the Boosters.

Pacific Water gets its first top pick of a round in the eighth followed by Stan Quezon, Glutagence, and Paranaque.

The Boosters will open things off in round nine with the Queens, Aces, and Lady Spartans picking next, in that order.

Rounds 10 and 12 have identical order with Parañaque, Pacific Water, Stan Quezon, and Glutagence drafting while round 11 has the Aces still picking first followed by the Boosters, the Queens, and the Lady Spartans.

A total of 115 players will compose the league’s first draft class — all of whom took part in the Draft Combine last Dec. 12 to 13.

“On behalf of Chairman Celso Mercado and NBL Commissioner Edward Aquino, we would like to extend our congratulations to all our WNBL teams and advance congratulations to the 115 dreamers as we are just one week away from making their dreams happen,” said WNBL Executive Vice-President Rhose Montreal in a statement.

The lottery was supervised by Games and Amusements Board’s Assistant Chief of Pro Basketball and Pro Games division Rodil Manaog.

Serena, Osaka sail into 2nd round

MELBOURNE — Serena Williams took the first step on what she hopes will be the path to a record-equalling 24th Grand Slam title in some style on Monday with a 6-1 6-1 thrashing of Germany’s Laura Siegemund at the Australian Open.

The 39-year-old American, who had never failed to get through the first round in 19 previous visits to Melbourne Park, made a faltering start with a double fault on the first point and gave up her serve in the first game.

Williams lost just one more game over the one-hour contest, however, overpowering her hapless opponent with thumping serves and howitzer forehands in front of a small but enthusiastic crowd of unmasked fans on Rod Laver Arena.

Next up for the seven-times Australian Open champion in her quest to match Australian Margaret Court’s record tally of Grand Slam titles is a second round tie against Serbian Nina Stojanović.

OSAKA
Naomi Osaka made a stunning start in the Australian Open on Monday by demolishing triple quarter-finalist Anastasia Pavlyuchenkova (6-1, 6-2) to reach the second round.

Russian veteran Pavlyuchenkova was seen as a potential banana skin for Osaka, but was reduced to roadkill as the Japanese third seed steamrolled her in the opening match at Rod Laver Arena.

Osaka pulled out of the semi-final of the Gippsland Trophy with a shoulder niggle, but betrayed no sign of injury to the smattering of spectators in the centre court terraces.

Osaka next faces the winner of Caroline Garcia and Polona Hercog for a place in the third round. — Reuters

Jimmy Butler helps Miami Heat knock off New York Knicks

JIMMY Butler scored eight points in the fourth quarter and hit the tie-breaking jumper with 4:18 left Sunday afternoon as the visiting Miami Heat held off the New York Knicks in a 109-103 win.

Butler (17 points, 10 rebounds and nine assists) just missed a triple-double, while Bam Adebayo (24 points and 11 rebounds) also had a double-double for the Heat, which has won two straight for just the second time this season. Kendrick Nunn and Tyler Herro each scored 16 points, while Kelly Olynyk (15 points) and Duncan Robinson (12 points) each got into double digits.

Julius Randle had 26 points and 13 rebounds for the Knicks, whose two-game winning streak was snapped. Reggie Bullock hit seven 3-pointers on his way to 21 points, while Alec Burks had 13 points off the bench.

Bullock drained a trio of 3-pointers as the Knicks opened the game on a 15-5 run. The Heat responded with a 16-3 run — Bullock hit another 3-pointer for New York’s only points — in which Nunn hit two 3-pointers, including the tie-breaking trey that gave Miami a 21-18 lead. — Reuters

Hyundai, Kia say Apple car deal now off, see $8.5 billion wiped off market value

Apple and Hyundai first started talks over a car partnership in 2018, another person familiar with the matter previously told Reuters. But progress was hampered by the South Korean automaker’s reticence on working with outsiders, the person said.

SEOUL — South Korea’s Hyundai Motor Co. said on Monday it is not now in talks with Apple Inc. on autonomous electric cars, just a month after it confirmed early-stage talks with the tech giant, sending the automaker’s shares skidding.

Wiping $3 billion off its market value, Hyundai’s stock slid 6.2%. Shares in its affiliate Kia Corp., which had been tipped in local media reports as the likely operational partner for Apple, tumbled 15%—a $5.5 billion hit.

The announcement brings the curtain down on weeks of internal divisions at Hyundai Motor Co Group—parent to both automakers—about the potential tie-up, with some executives raising concerns about becoming a contract manufacturer for the US tech giant in a tie-up reminiscent of electronics firm Foxconn’s role in making device for Apple like the iPhone.

“We are receiving requests for cooperation in joint development of autonomous electric vehicles from various companies, but they are at early stage and nothing has been decided,” the automakers said on Monday, in compliance with stock market rules requiring regular updates to investors regarding market rumors.

“We are not having talks with Apple on developing autonomous vehicles.”

Kia shares had jumped 61% since Hyundai initially confirmed a local media report early in January that Apple and Hyundai were in discussions to develop self-driving electric vehicles by 2027 and develop batteries at U.S. factories operated by either Hyundai or Kia.

“Apple and Hyundai are in discussion, but as it is at early stage, nothing has been decided,” Hyundai said, before releasing subsequent statements that removed all mentions of Apple but said Hyundai was receiving electric car cooperation requests from parties it didn’t identify.

As recently as last week, media outlets including CNBC reported that a deal was close to being finalized. One South Korean report said the two companies were set to sign the deal on Feb. 17.

‘AGONIZING’
Hyundai is traditionally known for its reluctance to work with outsiders, making engines, transmissions, and even its own steel in-house in a vertically integrated supply chain as South Korea’s second-largest conglomerate.

Although shares in Kia and Hyundai had surged on news of the talks, internal opposition to becoming an Apple contract manufacturer was considerable, according to people familiar with the matter.

“We are agonizing over how to do it, whether it is good to do it or not,” a Hyundai executive aware of internal discussions on the tie-up told Reuters in January. “We are not a company which manufactures cars for others,” he said, speaking on condition of anonymity.

Apple and Hyundai first started talks over a car partnership in 2018, another person familiar with the matter previously told Reuters. But progress was hampered by the South Korean automaker’s reticence on working with outsiders, the person said.

Reuters reported in December that Apple was moving forward with autonomous car technology and aimed to produce a passenger vehicle that could include its own breakthrough battery technology as early as 2024.

Apple, known to keep product plans under tight wraps, has never acknowledged talks with the automaker about building vehicles, and wasn’t immediately available for comment outside business hours in the United States.

Analysts said talks might have collapsed over leaks of the partnership plan to media, or over possible insistence by Apple that Hyundai’s role in any tie-up would be that of an equipment manufacturer, rather than a strategic partner.

“With numerous news reports over discussions between the two companies, which should have been held to non-disclosure agreements, it would have been uncomfortable” said Kwon Soon-woo, an analyst at SK Securities.

Kevin Yoo, an analyst at eBEST Investment & Securities, said, “It seems clear that Hyundai Motor Group has not been too happy with dealing with Apple… They made it clear that they do not want to be treated just as Apple’s supplier or manufacturer.” — Heekyong Yang and Joyce Lee/Reuters

Five tips to figure out if a tech company on the stock market is an ethical investment

In the longer term, however, technology stocks remain a first choice for many investors. Historically, they’ve dominated global stock markets and continue to grow at a remarkable rate.

By Angel Zhong and Banita Bissoondoyal-Bheenick

These days people trading on the stock market want more than just a strong financial return. They’re increasingly opting for investments that will also have a positive societal impact.

The coronavirus pandemic showed us even established tech companies can suffer downturns in the short term. Apple, a tech behemoth, was left reeling when Chinese manufacturing hubs were temporarily shut down last year.

In the longer term, however, technology stocks remain a first choice for many investors. Historically, they’ve dominated global stock markets and continue to grow at a remarkable rate.

Even during the downward spiral of the pandemic, tech stocks such as Zoom and Microsoft soared in value as an influx of people started working from home. The question for many investors now is: how can one find profitable investments without supporting unethical activity?

GROWTH OF TECH STOCKS
According to investment advisers Morningstar, technology stocks account for 24.2% of the top 500 stocks in the United States. Facebook, Apple, Amazon, Netflix and Alphabet (which owns Google) dominate the market, with a combined value of more than US$4 trillion.

Tech stocks also take center stage in Australia. We’ve seen the rapid rise of “buy now, pay later” companies such as Australian-owned Afterpay and Zip.

At the same time, we’ve seen an increase in the number of Australians moving to ethical superannuation funds and ethically-managed investment schemes. The latter lets investors contribute money (to be managed by professional fund managers) which is pooled for investment to produce collective gain.

It’s estimated indirect investment through these schemes has increased by 79% over the past six years.

WHAT IS ETHICAL INVESTING?
While ethical investing is a broad concept, it can be understood simply as putting your money towards something that helps improve the world. This can range from companies that advocate for animal rights, to those aiming to limit the societal prevalence of gambling, alcohol, or tobacco.

Although there is no strict definition of ethical investment in Australia, many managed funds and super funds seek accreditation by the Responsible Investment Association Australasia. The “ethical” aspect can be grouped into three broad categories:

1. environmental — such as developing clean technology or engaging in carbon-neutral manufacturing

2. social — such as supporting innovative technology, reducing social harms such as poverty or gambling, boosting gender equality, protecting human and consumer rights, or supporting animal welfare

3. corporate governance — such as being anti-corruption, promoting healthy employee relations, or institutional transparency.

As investors, we must be very careful about the fine print of the companies we invest in. For example, accreditation guidelines dictate that a managed investment fund excluding companies with “significant” ties to fossil fuels could still include one that earns up to a certain amount of revenue from fossil fuels.

So while investment manager AMP Capital is accredited, it can still include companies earning up to 10% of their revenue from fossil fuel distribution and services.

5 TIPS FOR ETHICAL TECH INVESTMENT

Many technology stocks are well placed for ethical investment and you can choose to invest on your own, or indirectly via a managed investment fund. In either case, you should do some basic homework first.

1. Monitor the fund or company to ensure standards are maintained

For a company to be listed with the Australian Securities Exchange (ASX) it has to be publicly listed. It is therefore required to submit an annual audit report (audited by third-party auditors) to the Australian Securities and Investments Commission (ASIC), as per the Corporations Act 2001.

You can also contact ASIC for further information about a company listed on the ASX. The equivalent body for American companies is the US Securities and Exchange Commission.

If a company backtracks on the very ethical standards that prompted your initial investing, you should consider withdrawing your investment.

2. Stay updated on reported ethical breaches

Reputable news reports are useful on this front. Amazon, Facebook, and Alphabet are recurring names in reports about unethical practices in the tech sector.

While you can access plenty of information about a tech company from its own website and distribution channels, this is usually embellished and/or handpicked by the company itself. Make sure your information comes from diverse sources.

3. Consider how employees rate the company and why

Keep in mind a technology company might be environmentally ethical but still fall down on other issues, such as gender pay parity, for instance. It’s important to listen to employees’ claims about a company’s internal workings as such insight may otherwise be unavailable.

There are a number of independent sites reporting on corporate culture ratings, including Glassdoor.

4. Assess the environmental, social, and corporate governance (ESG) score

One benefit of investing in large to medium-sized tech companies is the ability to analyze their ESG score, issued by agencies such as Refinitiv. This score reflects how well the company adheres to ethical practice across environmental, social, and corporate governance-related matters.

5. Watch out for buzzwords

If you’re looking to invest in clean technology, watch out for buzzwords used in company reports. These are terms which at face value may seem to align with your own ethical investment values, without actually delivering.

For instance, “carbon net zero” and “carbon neutral” are not the same thing. This is an important distinction to consider if you’re wanting to make environmentally-responsible investments. — The Conversation

 

Angel Zhong is senior lecturer in finance at RMIT University, Australia.

Banita Bissoondoyal-Bheenick is associate professor and associate dean in finance at RMIT University, Australia.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Hedge funds bet on oil’s ‘big comeback’ after pandemic hobbles producers

Normally, oil producers would ramp up production as prices increase, but a move by environmentally focused investors from fossil fuels to renewables and caution by lenders leaves them hard-pressed to respond, hedge funds and other investors say. Image via Reuters

TORONTO — Hedge funds are turning bullish on oil once again, betting the pandemic and investors’ environmental focus has severely damaged companies’ ability to ramp up production.

Such limitations on supply would push prices to multi-year highs and keep them there for two years or more, several hedge funds said.

The view is a reversal for hedge funds, which shorted the oil sector in the lead-up to global shutdowns, landing energy-focused hedge funds gains of 26.8% in 2020, according to data from eVestment. By virtue of their fast-moving strategies, hedge funds are quick to spot new trends.

Global oil benchmark Brent has jumped 59% since early November when news of successful vaccines emerged, after COVID-19 travel curbs and lockdowns last year hammered fuel demand and collapsed oil prices. Last week it hit pre-pandemic levels close to $60 a barrel.

US crude has climbed 54% to around $57 per barrel during the same period.

“By the summer, the vaccine should be widely provided and just in time for summer travel and I think things are going to go gangbusters,” said David D. Tawil, co-founder at New York-based event-driven hedge fund, Maglan Capital, and interim CEO of Centaurus Energy.

Mr. Tawil predicted prices of $70 to $80 a barrel for Brent by the end of 2021 and is investing long independent oil and gas producers.

Hedge funds’ bullish bets come despite the International Energy Agency warning in January a spike in new coronavirus cases will hamper oil demand this year, and a slow economic recovery would delay a full rebound in world energy demand to 2025.

Normally, oil producers would ramp up production as prices increase, but a move by environmentally focused investors from fossil fuels to renewables and caution by lenders leaves them hard-pressed to respond, hedge funds and other investors say.

The pace of output recovery in the United States, the world’s No. 1 oil producer, is forecast to be slow and will not top its 2019 record of 12.25 million barrels per day (bpd) until 2023. Production in 2020 tumbled 6.4% to 11.47 million bpd.

The Organization of the Petroleum Exporting Countries, which has also revised down demand growth, however, still expects output cuts to keep the market in deficit throughout 2021.

“We are going to see some incredible oil prices over the next couple of years, incredibly hot,” said Mr. Tawil.

‘BULL MARKET’
Global crude and condensate production was down 8% in December from February 2020, prior to the pandemic’s spread accelerating, according to Rystad Energy.

North America’s output was down 9.5% and Europe’s production declined just 1% over the same time period.

US sanctions against Venezuela and declining oilfields in Mexico have kept oil output from Latin America sluggish.

Some banks are forecasting the United States, which leads with the number of COVID-19 cases, to reach herd immunity by July, which would greatly stimulate oil demand, said Jean-Louis Le Mee, head of London-based hedge fund Westbeck Capital Management, which is long a mix of oil futures and equities.

“Oil companies, for the first time in a long time, are likely to make a big comeback,” he said. “We have all the ingredients for an extraordinary bull market in oil for the next few years.”

In the United States, hedge funds increased their allocation to Exxon Mobil Corp by 21,314 shares in the third quarter, the most recent U.S. filings compiled by Symmetric.io showed.

Hedge funds added another 9,070 shares of US majors ConocoPhillips and 4,144 to Chevron Corp over the same time period.

Elsewhere, shorting activity in BP PLC fell by 16 million shares on Feb. 4 but increased slightly in European oil major Royal Dutch Shell Plc by 1.9 million shares, data from FIS’ Astec Analytics showed.

Some investors remain skeptical on Canadian oil companies, among the world’s most carbon-intensive producers, though they are bouncing back faster from the pandemic than the United States.

Current short positions rose in 10 out of 14 Canadian oil companies in the Toronto energy index during the second two weeks of January, according to filings reviewed by Reuters.

US shale production will not quickly rebound, given the capital required and debt producers are carrying, lending oil prices support, said Rafi Tahmazian, senior portfolio manager at Calgary-based Canoe Financial LP.

North America’s oilfield services sector, which producers rely on to drill new wells, has been decimated, he said.

“They’re decapitated from being able to grow,” Tahmazian said. “The supply side is broken.” — Maiya Keidan and Rod Nickel/Reuters

Monks, nurses join third day of protests against Myanmar coup

Aung San Suu Kyi has been kept incommunicado since army chief Min Aung Hlaing seized power in the early hours of Feb. 1 to counter what the military said was widespread election fraud. The 75-year-old faces charges of illegally importing six walkie-talkies and is being held in police detention for investigation until Feb. 15. Image via Reuters

Police fired a water cannon at protesters in the Myanmar capital on Monday as tens of thousands of people across the country joined a third day of demonstrations against the military’s removal of elected leader Aung San Suu Kyi a week ago.

Calls to join protests and to back a campaign of civil disobedience have grown louder and more organized since last Monday’s coup, which drew widespread international condemnation.

“We health workers are leading this campaign to urge all government staff to join the (civil disobedience movement)”, Aye Misan, a nurse at a government hospital said at a protest in the biggest city of Yangon. “Our message to the public is that we aim to completely abolish this military regime and we have to fight for our destiny.”

Weekend protests were the biggest since the “Saffron Revolution” led by Buddhist monks in 2007 that helped prompt democratic reforms that were upended by the Feb. 1 coup.

Police in the capital Naypyidaw fired brief bursts of a water cannon against a group of the thousands of protesters who had gathered on Monday, video from the scene showed.

In Yangon, a group of saffron-robed monks marched in the vanguard of protests with workers and students. They flew multicolored Buddhist flags alongside red banners in the color of Ms. Suu Kyi’s National League for Democracy (NLD), which won a landslide election in November.

“Release Our Leaders, Respect Our Votes, Reject Military Coup,” said one sign. Other signs read “Save democracy” and “Say No to Dictatorship”.

Thousands marched in the coastal city of Dawei, in the southeast, and in the Kachin state capital in the far north, where they were dressed head to toe in black.

So far gatherings have been peaceful, unlike bloody crackdowns during previous widespread protests in 1988 and 2007. A convoy of military trucks was seen passing into Yangon late on Sunday, raising fears that could change.

Reuters has been unable to contact the junta for comment on the protests and state television has not mentioned them.

CALLS FOR WORK STOPPAGES
The government lifted a day-long Internet ban at the weekend that prompted even more anger in a country fearful of returning to the isolation and even greater poverty before a transition to democracy began in 2011.

In addition to the street protests, a campaign of civil disobedience has begun, first with doctors and joined by some teachers and other government workers.

“We request government staff from all departments not to attend work from Monday,” said activist Min Ko Naing, a veteran of the demonstrations in 1988 that first brought Suu Kyi to prominence.

Ms. Suu Kyi won the Nobel Peace Prize in 1991 for campaigning for democracy, and spent nearly 15 years under house arrest during decades of struggling to end almost half a century of army rule.

The 75-year-old has been kept incommunicado since army chief Min Aung Hlaing seized power in the early hours of Feb. 1 to counter what the military said was widespread election fraud. Myanmar’s electoral commission has rejected those claims.

Ms. Suu Kyi faces charges of illegally importing six walkie-talkies and is being held in police detention for investigation until Feb. 15. Her lawyer said he has not been allowed to see her.

The United Nations Security Council called for the release of Suu Kyi and other detainees last week and the United States is considering targeted sanctions.

Australia, which has condemned the coup, demanded the immediate release of a citizen who was working as an economic adviser to the Suu Kyi government and was arrested over the weekend.

The United Nations continued to press for a restoration of democracy.

“Protesters in Myanmar continue to inspire the world as actions spread throughout the country,” Thomas Andrews, the United Nations special rapporteur on Myanmar said on Twitter. “Myanmar is rising up to free all who have been detained and reject military dictatorship once and for all. We are with you.” — Reuters

Americans take to ‘buy now, pay later’ shopping during pandemic, but can they afford it?

The ease with which many shoppers can make purchases is worrying some regulators around the world, who fear consumers may be spending more than they can afford.

When Leondra Garrett wanted to stock up on three new pairs of shoes early last year, the North Carolina resident split a $161 online purchase into four installments through a “buy now, pay later” service, in what seemed like a convenient deal.

Now, she admits she should have read the small print about missed payments.

When the buy now, pay later (BNPL) provider tried to withdraw a payment from Ms. Garrett’s bank account a few months later, she didn’t have enough funds to cover it. Soon after, the 42-year-old was charged $40 in penalties and her credit score dropped 10 points to 650, a reading generally classified as “fair.”

“It’s important for consumers to always read the fine print and we don’t always do it,” said Ms. Garrett, a community organizer from Charlotte.

So-called buy now, pay later services—offered by providers such as Affirm Holdings Inc., Klarna, Afterpay Ltd. and PayPal Holding Inc.’s “Pay In 4”—have blossomed across retail websites during the coronavirus pandemic as people have turned more to shopping online.

Yet the ease with which many shoppers can make purchases is worrying some regulators around the world, who fear consumers may be spending more than they can afford.

Nearly 40% of US consumers who used “buy now, pay later” have missed more than one payment, and 72% of those saw their credit score decline, according to a study by Credit Karma, which offers customers credit score checking for free.

The study, conducted for Reuters, surveyed 1,038 adult consumers in the United States to gauge interest in “buy now, pay later” and found 42% of respondents had used the service before.

“The percentage of consumers missing payments is remarkable and not as low as you would expect,” said Gannesh Bharadhwaj, general manager for credit cards at Credit Karma.

“When you make something so convenient, people may not be really thinking, ‘Do I have the budget? Can I afford this payment?’ You get more of that impulse-shopping behavior that leads to realizing they may not be able to make the payment.”

A lower credit score signals to lenders that a consumer may be higher risk and makes it harder for the consumer to borrow, whether to secure a mortgage or a new credit card. It can even make it more difficult for a consumer to set up utility accounts or find housing, as landlords will generally conduct credit score checks before renting out apartments.

Management consultants Oliver Wyman estimate BNPL firms facilitated between $20 billion–$25 billion in transactions in the United States last year, although analyst estimates on the size of the BNPL industry vary because it is relatively new and some of the companies are private. Individually, they described explosive growth last year as their services became more prevalent.

Australia-based Afterpay said it saw active US customers more than double to 6.5 million in the fiscal year ended June 30, 2020, and its sales more than tripled in the July–September quarter from a year earlier.

Over half of Afterpay’s customers in the United States are millennials, aged 25 to 40 years-old, it said.

BNPL models vary, with some companies earning most profits by collecting fees from merchants at the point of sale, and others charging interest and late fees to consumers. They say their services help merchants to boost sales and consumers to buy things they need, and cause less financial damage than credit cards because of restrictions they impose.

Nonetheless, regulators in Britain and Australia are reviewing or tightening rules around the industry. BNPL service providers, classified as fintech companies, should be subject to stricter rules more like banks, some regulators say.

It is unclear how buy now, pay later fits into US regulations because the companies that offer these services do not have bank charters, some do not charge interest and laws vary by state. However, some experts expect the sector to come under more scrutiny during the Biden administration.

“One of the questions with the new administration is, what stance will the Consumer Financial Protection Bureau take going forward?—which we expect to be more aggressive,” said Mark Palmer, financials analyst at BTIG Research.

San Francisco–based Affirm saw its revenue rise 93%, to $509.5 million, in the fiscal year that ended in June. It allows shoppers to split up purchases in terms ranging from six weeks to four years, with interest rates of 0 to 30%.

Affirm shows customers how much a loan will cost in dollar terms and does not charge late fees or compound interest. Although missed payments can affect credit scores, Affirm says it has been working with borrowers who fell on hard times during the pandemic.

“We approve borrowers only for what they can comfortably afford to repay,” said Silvija Martincevic, Affirm’s chief commercial officer. “The reason our technology is significant is that we use machine learning to make underwriting decisions.”

At Australia’s Afterpay, customers are barred from using its services after they miss a payment.

The company says 95% of its transactions globally are paid back on time and late fees contribute less than 14% of the company’s total income.

PayPal “Pay in 4” service, launched widely across the United States in November, allows customers to split purchases ranging from $30 to $600 in four interest-free payments. Late fees may apply for missed payments, depending on the user’s state of residency, according to its website.

The PayPal “Pay in 4” product in the United States does not report trades or late fees to the credit bureaus, said Greg Lisiewski, PayPal’s global vice president of Global Pay Later.

“We are working with the industry and the consumer credit bureaus to develop the appropriate framework,” he said.

Sweden-based Klarna saw fast growth over the past year, especially purchases in the $100–$200 range, said its US head, David Sykes.

Most of Klarna’s loans are small, of short duration and interest-free, which is safer for customers than credit cards, he said. Customers can delay one payment without a penalty. Late fees vary by state in line with regulation, up to a maximum of $21 and the company is rolling out a 25% cap.

“No one is getting buried in debt with Klarna,” Mr. Sykes said. “We aren’t making multi-year loans on a car or a house.”

Smaller loans with shorter durations do have benefits, but they are not risk-free, experts said. Customers may be taking on more debt than they can handle, even if it comes in bite-sized portions.

Tamika Rivera, a 35-year old insurance agent from Springfield, Massachusetts, uses multiple buy now, pay later services, and has missed payments. In one case, she did not have enough money to cover a $43 sweater purchase, which resulted in a $35 overdraft fee from her bank.

“These services are convenient but there are some negative things that can happen,” Ms. Rivera said.

Alan McIntyre, head of Accenture’s global banking practice, says the credit impact of the buy now, pay later trend remains to be seen.

“The optimistic take is that millennials don’t want to get into debt and they want to build a budget better—this is deferred debit and you are not tempted to roll it over,” he said.

“The pessimistic view is that around 40% of people using it are doing so because they couldn’t get access to traditional credit—either because they’ve maxed out their credit limit or because of a poor or non-existent credit history—and some of these loans might not season well.” — Anna Irrera/Reuters

ADVERTISEMENT
ADVERTISEMENT