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PSEi surges past 8,300 on Fed, BSP easing bets

THE MAIN INDEX surged past the 8,300 mark on Monday as investors continued to bet on monetary policy easing by the US central bank.

The bellwether Philippine Stock Exchange index (PSEi) went up 223.47 points or 2.74% to close at 8,356.29 on Monday. The broader all-shares index also climbed 99.26 points or 2% to finish at 5,043.96.

“This strong close in the PSEi may also have been influenced by the dovish statement from the US Fed (Federal Reserve) minutes last week. Investors are also looking at the Monetary Board meeting,” Jervin S. de Celis, equity trader at the Timson Securities, Inc., said in a mobile message.

“Philippine stocks broke into bull market territory after Federal Reserve Chairman Jerome Powell in two days of congressional testimony last week bolstered investor expectations for an interest rate cut at the end of the month,” Luis A. Limlingan, head of sales of Regina Capital Development Corp., said.

Fed chair Jerome Powell, in a testimony before the US Congress last week, hinted on a possible cut in benchmark rates, saying the central bank will “act as appropriate” to sustain expansion as “crosscurrents” such as trade tensions and concern on global growth are weighing on the world’s largest economy.

Mr. Powell’s dovish cues were reinforced by the minutes of Federal Open Market Committee’s June 18-19 meeting, wherein several Fed officials said a near-term interest rate cut is warranted to quell the effects of possible economic headwinds.

Meanwhile, the Bangko Sentral ng Pilipinas’ (BSP) policy-setting Monetary Board will review its settings anew on Aug. 8.

BSP Governor Benjamin E. Diokno last week said the local central bank will likely cut policy rates in the second semester before moving to reduce banks’ reserve requirement ratio.

Timson Securities’ Mr. De Celis added that investors are already anticipating the second-quarter results of blue-chip stocks after SM Prime Holdings, Inc. yesterday kicked off earnings season as it reported a 16.4% increase in net income during the second quarter to P10.50 billion from P9.02 billion a year ago.

All sector counters ended in the green led by financials, which increased by 3.37% or 60.43 points to close at 1,849.22. Holding firms went up 3.33% or 258.52 points to 8,016.75; property rose 1.88% or 83.36 points to 4,507.29; industrials climbed 1.83% or 216.59 points to 12,007.84; services added 1.14% or 19.37 points to 1,713.02; and mining and oil gained 1.06% or 79.21 points to end at 7,516.37.

Some 1.59 billion issues valued at P8.51 billion switched hands on Monday, higher than the previous session’s P6.86 billion.

Advancers trumped losers, 124 to 62, while 56 names closed unchanged.

Net foreign buying ballooned to P1.04 billion on Monday from Friday’s P419.49 million.

On Wall Street last Friday, the three main indexes hit record intraday highs on hopes of an interest rate cut this month. — VMPG

Gasoline prices to rise by P1.05 a liter this week

PRICES of gasoline, diesel and kerosene products are set to rise this week to reflect global price movements, according to separate advisories issued by oil companies yesterday.

Gasoline products will increase by P1.05 a liter, while diesel and kerosene will cost P0.70 higher a liter.

Most of the oil companies that sent their advisories as of Monday afternoon scheduled the price adjustment at 6:00 a.m. on Tuesday, July 16.

Last week, they raised the price of gasoline by P0.25 a liter and cut diesel and kerosene prices by P0.40 a liter and P0.35 a liter, respectively.

Year-to-date adjustments as of July 10 stood at a net increase of P5.15 a liter for gasoline, P3.30 a liter for diesel and P1.75 a liter for kerosene, according to the Energy department website.

Meanwhile, President Rodrigo R. Duterte has signed into law the bill mandating a 20 percent student fare discount on all public vehicles, according to the presidential palace.

Under the law that Mr. Duterte signed on April 17, the discount will apply to regular domestic fares. Students must present their school IDs or validated enrollment forms to be eligible.

It covers all public transportation such as buses, jeepneys, taxis, tricycles, trains, aircraft and ships. The discount will not cover school, shuttle and tourist services.

The fare discount may be availed of during the entire period while the student is enrolled, including weekends and holidays.

Transport agencies have 90 days to issue rules implementing the law. — Victor V. Saulon and Arjay L. Balinbin

Duterte to continue drug war as he faces United Nations probe

PRESIDENT Rodrigo R. Duterte will continue his war on drugs despite a United Nations resolution that seeks to investigate alleged human rights abuses by the police, according to the presidential palace.

“We shall remain unrelenting in our campaign against illegal drugs, corruption, criminality and terrorism,” Executive Secretary Salvador C. Medialdea said in a statement yesterday, rejecting “in the strongest terms” the resolution issued by the UN Human Rights Council.

“No resolution from any international council, especially those led by states that are misinformed about the situation in our country, shall weaken our resolve to effectively protect our people’s lives, their properties and their freedoms,” he added.

The council on July 11 ordered the human rights office to present a comprehensive report as it expressed concerns about human rights violations in the Philippines. The body adopted a resolution that Iceland proposed and 17 other nations supported.

The council urged the government to cooperate with UN offices by allowing visits by its officials and by “refraining from all acts of intimidation or retaliation.”

The resolution also called on the Philippines “take all necessary measures to prevent extrajudicial killings and enforced disappearances, to carry out impartial investigations and to hold perpetrators accountable.”

Mr. Medialdea said minority members of the council had “short-circuited and rendered inutile” the time-honored mechanisms by which the UN maintains the accountability of member-states, such as the treaty body system and the universal periodic review.

“The Philippine government sees the resolution for what it is — a pernicious act, an affront to a sovereign, peace-loving nation, and an abuse of UNHRC processes,” according to the statement.

Philippine police have said they have killed more than 6,000 people in illegal drug raids, many of them resisting arrest. Some local nongovernmental organizations and the national Commission on Human Rights have placed the death toll at more than 27,000.

Police seek changes to anti-terrorist law

THE PHILIPPINE National Police (PNP) wants extended surveillance of suspected terrorists as part of proposed changes to the country’s anti-terror law, police chief General Oscar D. Albayalde said at a briefing yesterday.

Mr. Albayalde said 72 hours of surveillance under the Human Security Act is not enough to build a case. “You need to follow up, prove and validate all information against that person.”

The 12-year-old law limits the detention of a suspect to three days.

Early this month, Senator Panfilo M. Lacson filed a Senate bill that seeks to amend the law by extending the surveillance period to give law enforcers more time to gather evidence.

Mr. Albayalde said lawmakers should also delete a clause that imposes a P500,000 daily fine on a law enforcer who may have wrongfully detained a suspect. — Vince Angelo C. Ferreras

Health officials issue national dengue alert

HEALTH OFFICIALS issued a national dengue alert after cases of the viral disease transmitted by mosquitoes peaked to more than 100,000 as of June, a record since 2016.

“A national dengue alert is in place, which is due to the rapidly increasing number of cases in some regions,” Health Secretary Francisco T. Duque III said at a briefing yesterday.

Dengue cases rose 85 percent from a year earlier to 106,630, according to the Health department. Regions with the most cases were Western Visayas with 13,164, Calabarzon with 11,474, Central Visayas (9,199), Soccsksargen (9,107) and Northern Mindanao (8,739).

The local peak in dengue cases reflects a global spike that happens every three years, Gundo Weiller, World Health Organization (WHO) Philippine representative, said at the same briefing.

Science cannot explain the three-year spike that has been observed globally, Mr. Weiller said, adding that dengue, which causes fever and acute pains in the joints, has now erupted in places that have not seen the disease before.

Regions where dengue has become an epidemic are Mimaropa, Western and Central Visayas, and Northern Mindanao, according to the Health department.

Health officials asked the public to practice prevention by destroying mosquito breeding sites, wearing long pants and long-sleeved shirts and using a mosquito repellent. Victims should seek a cure as soon as the symptoms occur to prevent death. — Gillian M. Cortez

Tropical depression Falcon to bring rains this week

MODERATE TO heavy rains are expected in different parts of the country until Wednesday as tropical depression Falcon passes through in a northeastern path. Weather bureau PAGASA, in its 11 a.m. bulletin on July 15, said Falcon has “slightly accelerated while maintaining its strength.” The areas affected by scattered to widespread rain showers and thunderstorms on Monday were Bicol Region, Eastern Visayas, Zamboanga Peninsula, the Bangsamoro region, MIMAROPA, and the rest of Visayas. No typhoon warning signals were raised as of Monday morning. By Tuesday, light to moderate with occasional heavy monsoon rains will prevail over MIMAROPA, Western Visayas, Zamboanga Peninsula, and Bangsamoro. On Wednesday, moderate to heavy rains are expected over Ilocos, Cordillera Administrative Region, Cagayan Valley, Zambales, Bataan and Mindoro provinces due to the combined effects of Falcon and the enhanced southwest monsoon. Light to moderate with occasional heavy monsoon rains will prevail over Metro Manila, CALABARZON, Western Visayas, and the rest of Central Luzon and MIMAROPA. Falcon is forecasted to be out of the Philippine area by Friday morning.

Over 14,000 cops to be deployed for President’s SONA

THE NATIONAL Capital Region Police Office (NCRPO) will deploy 14,100 policemen around Metro Manila, with 9,000 cops and force multipliers to be assigned in Quezon City for the President’s State of the Nation Address (SONA) on July 22. NCRPO chief Major General Guillermo T. Eleazar, in a chance interview with reporters at Camp Crame on Monday, said they are anticipating that about 15,000 rallyists will converge along Commonwealth Avenue during the SONA. He also said that they intend to maintain the same procedures in the past three SONA events. “For the past three years, wala tayong (we did not put) barb wire, container van, hindi tayo naglagay ng (we did not have) shield unless umuulan (it was raining)…so ayun pa rin ang inaasahan natin ngayon (we are hoping to observe the same this year),” he said. Mr. Eleazar added that they are also expecting rallyists near the US Embassy in Manila, at Chino Roces Bridge, Liwasang Bonifacio, and EDSA Shrine. Police officials will meet on Wednesday with other stakeholders, including leaders of both pro-government and anti-government groups as part of the SONA security preparations. — Vince Angelo C. Ferreras

Major real estate developers at SRP to get an audience with new Cebu City admin

THE NEW Cebu City administration under Mayor Edgardo C. Labella is planning to meet with all investors at the South Road Properties (SRP) to thresh out concerns, including issues over contracts and other legal matters.

SRP Manager Jose C. Daluz III said the local government does not want to block projects and other developments initiated by the previous administration, but to clarify issues. The planned P18-billion complex of Gokongwei-led Universal Hotels and Resorts, Inc. (UHRI), for example, will be discussed in terms of the revenue share of the city. “The mayor’s stand is just to increase the city’s share. We want an increased share of the city nga (that is) across the board,” Mr. Daluz said in mixed English and Visayan. The UHRI project is currently undergoing design revisions after the Office of the Building Official returned the building permit application to correct “deficiencies.”

LOT BUYERS
Meanwhile, Cebu City legal officer Rey M. Gealon has recommended the withdrawal of the civil case filed by the previous administration against the major real estate firms that acquired lots at the SRP. Mr. Gealon said the petition is “fatally defective” in relation to forum shopping. The recommendation was scheduled to be submitted to the city council Monday. Mr. Gealon said he cannot allow his office to be part of the case which is “dismissible on that elementary and rudimentary point of law; devoid of merit, frivolous and dubious; and highly suspect for its timing and intentions… Thus, recommending to the Sangguniang Panglungsod for the withdrawal of this ‘midnight case’ is apt and indispensable.” The case was filed against SM Primeholdings, Inc., Ayala Land, Inc., Cebu Holdings, Inc., Filinvest Land, Inc., Filinvest Alabang, Inc., Cyberzone Properties, Inc., Anesy Holdings Corporation, IGold Holdings Incorporation, and Betterfield Phils., Corp. over the 45.5-hectare lot sale in 2015. Lawyer Romulo Torres earlier questioned the validity of the sale but the transaction was sustained by the Court of Appeals. — The Freeman

Bring the intervention to the barangay level–BARMM MILG minister

THE SERIES of discussions for drafting the Bangsamoro local government code kicked off Monday in Cotabato City, with the Ministry of Interior and Local Government (MILG) setting its sights on strengthening barangays being the local government unit (LGU) “nearest” to the people. “Here in our region, poverty incidence, dropout rate, or literacy rate, are just numbers. But if you go down to the barangay level, they know the names of the people affected by these data. The connection of our programs to the people is clearer. If we want our projects to have impact to the people on the ground, we should bring it to the nearest government unit — the barangay,” MILG Minister Naguib G. Sinarimbo said. The MILG minister said Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Chief Minister Murad Ebrahim supports the plan to invest more in the barangay units through higher budget allocation. The local government code is one of the priority legislations of the Bangsamoro as provided under Republic Act 11054. Mr. Murad said that creating the code “will clearly define the relationship between the LGUs and the Bangsamoro government.” He also noted that RA 11054, An Act Providing for the Organic Law for the BARMM, compared to the now defunct ARMM government, gives “full autonomy entity” to the newly-created Bangsamoro government. “We can have a different mechanism of relationship with the local government,” he said. — Tajallih S. Basman

Nationwide round-up

Duterte just mocking critics in remark on invoking US defense treaty

MALACAÑANG ON Monday said the suggestion of critics to invoke the Mutual Defense Treaty with the United States as a response to China’s militarization in the West Philippine Sea is “absurd.” Presidential Spokesperson Salvador S. Panelo made this statement to clarify President Rodrigo R. Duterte’s remark last week that he was willing the invoke the treaty. Mr. Panelo said the intention of the President’s statement was to mock his critics. “Ang sinasabi niya doon sa mga (What he is saying to) critics, if you consider that as an armed aggression that will fall within the treaty then he will invoke it,” the spokesman said, adding that Mr. Duterte was stressing the “absurdity” of the suggestion that we should attack China. He added that the President was trying to send a message to his critics that their proposal is only good in their “imagination.” — Arjay L. Balinbin

Senators in differing positions on possible UNHRC withdrawal

SENATE PRESIDENT Vicente C. Sotto III said he will support Foreign Affairs Secretary Teodoro L. Locsin, Jr.’s decision on whether to withdraw or retain the Philippines’ membership in the United Nations Human Rights Council (UNHRC) following its adoption of the Iceland Resolution. “I will not be surprised if Sec. Locsin will follow suit considering the way they were, all of a sudden, handling the resolution from Iceland and not even getting the majority of the members of those present in the quorum and saying that it is a UNHRC resolution,” Mr. Sotto told reporters in a chance interview, Monday. “It’s illogical. I will not be surprised and I will be supportive of any decision that Sec. Locsin will arrive at.” Senator Panfilo M. Lacson, for his part, said withdrawing from UN bodies may put the Philippines at a disadvantage. “At the rate we are withdrawing from the UN bodies, it could only be a matter of time when we will be left to our own devices. We may not know when, what and how, but being a developing country, we may need to ask for help from the community of nations sooner or later,” Mr. Lacson said in a social media post on Monday. Mr. Locsin on Sunday said the Philippine government might withdraw its membership to the UNHRC over its adoption of the Iceland Resolution that sought to investigate the human rights situation in the Philippines. — Charmaine A. Tadalan

Palace hands off proposal to impeach VP Robredo

MALACAÑANG IS keeping its hands off the suggestion to initiate impeachment proceedings against Vice-President Maria Leonor G. Robredo for supporting the Iceland-initiated resolution at the United Nations Human Rights Council (UNHRC) to investigate President Rodrigo R. Duterte’s bloody anti-drug war. “Tanungin natin iyong (Let’s ask the)… one, ang Supreme Court; two, impeachment court. But you know, we have better things to do. There are so many problems in this country. I will leave it to those who would want to initiate whatever they want to initiate against whomsoever,” Presidential Spokesperson Salvador S. Panelo said in a press briefing on Monday. Mr. Panelo was asked to comment on the remark of Presidential Anti-Corruption Commission Commissioner Manuelito R. Luna last week that Ms. Robredo could be impeached for expressing her support to the UNHRC resolution. When asked if supporting the resolution is tantamount to betrayal of public trust, Mr. Panelo replied: “Is ignorance a betrayal of the public trust? That is my response. If gross ignorance is a ground for impeachment, is that a ground under the Constitution?… Draw your conclusion.” The UN rights council on June 11 voted to investigate the drug-related killings in the Philippines under the Duterte administration. But both Malacañang and the Department of Foreign Affairs rejected the resolution, saying that it does not represent the will of the council. On Monday, Mr. Panelo said there is no need for the council to pursue its investigation in the Philippines, but it can just send a communication asking for information on the drug war. He also said, however, that there is no guarantee that the Philippine government will provide the documents. “They have to believe what this government tells them because this government doesn’t lie,” he added. — Arjay L. Balinbin

DoJ grants KAPA request for an extension to submit counter-affidavits

THE DEPARTMENT of Justice (DoJ) granted the request of the legal counsel of Kapa-Community Ministry International, Inc. (KAPA) and three of its officials, including founder Joel A. Apolinario, to extend the submission of their counter affidavits to July 29. KAPA legal counsel Mae S. Divinagracia said they sought the extension as they still have to interview the respondents. “We had to file an extension… because we still have to thoroughly study the records considering that the documents that were furnished to us are quite voluminous. And we also have to fly to Saranggani to conduct the necessary interviews,” she told reporters. The other respondents in the Securities and Exchange Commission (SEC) complaint for violating some provisions of the Securities Regulation Code who are among the represented are: Corporate Secretary Reyna L. Apolinario and Rene Catubigan. Ms. Divinagracia also said they asked that the respondents be allowed to subscribe their counter-affidavit before the provincial prosecutor of Saranggani instead of before the DoJ due to threats to their lives. The panel of prosecutors led by Assistant State Prosecutor Zenamar Machacon-Caparros granted the request of KAPA to move their submission and set another hearing on July 29. Other respondents in the complaint who were not represented are: trustee Margie A. Danao, Marisol M. Diaz, Adelfa Fernandico, Moises Mopia, and Catherine Evangelista. The SEC filed the complaint against KAPA and eight of its officials in connection with their involvement in what is considered as an investment scam by enticing the public to give at least P10,000 as “donation” with a promise of monthly return of 30% as “blessing” for life. SEC said the scheme “involved sale and offering for sale or distribution to the public of securities, in form of investment contracts.” — Vann Marlo M. Villegas

Comelec starts scouting for automated election system

Comelec logoTHE COMMISSION on Elections (Comelec) has started reviewing election solution systems that they can potentially use in the presidential and national elections in 2022. Comelec Chairman Sheriff A. Abas said the Automated Elections Systems (AES) Fair held on July 15 by the Department of Information and Communications Technology (DICT) allowed them to witness various modern electoral solutions. “This is the kind of insight we need as we look forward to the elections of 2022,” he said in a statement on Monday. Comelec Spokesperson James B. Jimenez said the poll body is going to review these systems shown by various exhibitors in the AES Fair. “All of these solutions show great promise, and the Comelec will be evaluating each one, to see how well they meet the Philippines’ unique circumstances.” During the May 2019 national and local elections, almost 1,000 vote counting machines (VCMs) out of more than 85,000 were reported to have malfunctioned while almost 2,0000 SD cards out of more than 55,000 were also reported to be defective. The suppliers of the VCMs and the SD cards were Smartmatic and S1 Technologies, respectively. — Gillian M. Cortez

Nation at a Glance — (07/16/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (07/16/19)

Find a problem you are passionate to solve: Startup tips from JUUL Labs founder, Adam Bowen

When Adam Bowen and James Monsees, founders of successful e-cigarette company JUUL Labs, first introduced their take on a less harmful alternative to smoking in 2015, they knew they had the opportunity to make something truly significant.

In Stanford University where they met, Bowen and Monsees were heavy smokers. They felt conflicted about their habit, more so for Monsees whose grandfather passed from a smoking-related disease. Despite the variety of nicotine replacement therapies in the market, both felt that that there was no true and viable alternative to cigarette smoking. Their solution? Make one.

BusinessWorld’s SparkUp spoke to Bowen in an exclusive interview at the launch of The New Billionaire’s Club, a program seeking to develop innovative and technology-driven enterprises. Bowen was invited to speak to further inspire the fledging local startup community. Below are four of the biggest lessons he has learned developing the now-billion dollar company.

1. Find a problem that you are passionate to solve

Bowen admitted that growing JUUL from a startup was not easy, especially with a controversial product such as theirs. However, Bowen and Monsees knew how crucial it was to develop an effective solution for smokers around the globe.

“There are close to a billion smokers worldwide. Currently, about 34 million in the U.S. Here in the Philippines, there are 16 million smokers who are stuck in the same predicament that James and I were all those years ago. We knew we had to keep on pushing to realize our mission of improving the lives of all these smokers,” he said.

Bowen thus encouraged entrepreneurs to find something they are passionate to address to help keep the fire burning, and encourage them to make a significant impact. He said that it was their clear understanding of how JUUL could potentially help improve the lives of millions of people that fueled their determination to succeed.

With JUUL’s devices and pods, critical public health issues like the local tobacco epidemic could be addressed, and help provide much-needed funding for the country’s Universal Healthcare Act, which seeks to give all Filipinos access to the full continuum of health services that they need, sans the financial burdens that go along with these.

“This is one of the most rewarding parts of what we do – seeing how we can effect positive change in the lives of smokers. It’s kind of seeing that light at the end of the tunnel,” Bowen shared.

The JUUL system, through heavy investment into research and development, was developed to be a better, smokeless nicotine device. Instead of burning tobacco, which activates and releases harmful chemicals such as arsenic, formaldehyde, and lead, the JUUL employs a temperature-controlled vaporization of its proprietary e-liquid nicotine formulation that mimics the experience of traditional cigarette smoking.

Bowen further shares that the product is consistently being improved with technological innovations like Bluetooth technology to monitor and manage nicotine intake while continuing to provide a safe and pleasurable smoking experience.

In the Philippines, JUULpods come in four flavors, in 3% and 5% nicotine strengths: Virginia Tobacco, Mint, Mango, and Creme. The purpose of these flavors and strengths is facilitate the easier switching from combustible cigarettes.

2. Be flexible with how you manage your business.

One benefit of getting things wrong early on is that you become aware of how imperfect your initial solutions may be. Bowen warned startups against the dangers of believing too much in your idea, making unfounded assumptions, or falling in love with a product or prototype you’ve created.

The development process, Bowen said, is “learning to become flexible in your thinking, and in keeping your eyes wide open.” It helps to have a partner or a team of consultants to refer to when brainstorming.

3. Mind your resources

A common pitfall that startups have trouble with, Bowen said, is overspending. If you’re not careful, it could end your business before it even gets off the ground.

“It’s common for companies to get funding, and then to start spending too quickly, including paying yourself too much,” Bowen said.

To prevent this, Bowen advised startups to always be mindful of the important, non-negotiable business milestones, such as proper timing of product introduction and rollout, and when to expect profit generation. Securing funding is just one part of the operation — arguably the easiest part, due to the prevalence of crowdfunding websites.

4. Be open to failure and learn accordingly.

While a startup is in the development stages, it pays to fail as often as possible. “When you’re in a prototyping phase and you make a mistake or something doesn’t work, it costs maybe $10, $100 or whatever. When you start manufacturing, you’re talking about orders of magnitude in additional costs. Oh, you made a mistake in the design. Now you need to change all these production lines. Now you’re talking thousands, or hundreds of thousands of dollars,” he said.

Bowen said that startups should embrace failure while mistakes are still cheap to make, and adjust their products to address them. “There will be failures. There will be things that you may get wrong. The earlier you can test your assumptions, fail, and learn from those failures, the better.”

The New Billionaire’s Club is an initiative by the startup incubator STARTUP Village aiming to highlight socially-driven enterprises that impact the lives of a significant number of Filipinos. The series, entitled “Who Wants to Be a Billionaire?”, will be conducted on a quarterly basis at various STARTUP Village locations and will feature people and companies that are improving the lives of billions of people.

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