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Kobe, daughter among 9 killed in helicopter crash near LA

CALABASAS, CALIFORNIA. — Kobe Bryant, one of the NBA’s all-time greatest players whose international stardom transcended basketball, was killed at age 41 on Sunday in a helicopter crash near Los Angeles along with his 13-year-old daughter and seven others on board, officials said.

Bryant rocketed to fame as an 18-year-old rookie and played 20 years for the Los Angeles Lakers — 18 of them as an All-Star — winning five NBA championships. His death sent shockwaves through the National Basketball Association, which he helped propel to global prominence, and stunned fans around the world.

The cause of the crash was unknown, and an investigation by the Federal Aviation Administration and the National Transportation Safety Board could take months.

Bryant was known since his playing days to travel frequently by helicopter to avoid the Los Angeles area’s notorious traffic.

His Sikorsky S-76 chopper went down in foggy weather shortly before 10 a.m. (1800 GMT) in hilly terrain just outside Calabasas, California, about 40 miles (65 km) northwest of central Los Angeles, sparking a brush fire, officials said.

“There were no survivors,” Los Angeles County Sheriff Alex Villanueva told a news conference, saying the flight manifest showed nine people on board. He declined to identify them.

NBA Commissioner Adam Silver confirmed Bryant and his daughter Gianna were among those killed, and sent condolences to Bryant’s wife, Vanessa.

“He was one of the most extraordinary players in the history of our game with accomplishments that are legendary,” Silver said, as tributes poured in from players, politicians and entertainers.

The fire and debris field from the crash spread over a quarter-acre of steep terrain in the grass-covered foothills of the Santa Monica Mountains, county Fire Chief Daryl Osby said.

Among the others on board, in addition to the pilot, were a teammate from Bryant’s daughter’s basketball squad and a parent of the teammate, NBC News reported.

Orange Coast College baseball coach John Altobelli was also one of the victims, the Orange County Register reported, citing assistant coach Ron La Ruffa.

‘KOBE WE LOVE YOU’
Reaction to Bryant’s death was swift, and moments of silence were observed before some of Sunday’s NBA games.

In San Antonio, the Toronto Raptors and San Antonio Spurs allowed the 24-second shot clock to expire on each of their first possessions, in tribute to Bryant’s jersey number, 24.

“I am in shock over the tragic news of Kobe’s and Gianna’s passing. Words can’t describe the pain I’m feeling,” said Michael Jordan, who won six NBA championships with the Chicago Bulls.

“Kobe was an amazing dad who loved his family deeply — and took great pride in his daughter’s love for the game of basketball,” Jordan said.

Fans mourn the loss of NBA legend Kobe Bryant outside of the Staples Center in Los Angeles. — HARRISON HILL-USA TODAY

Stunned fans gathered near the Lakers’ home arena — the Staples Center in downtown Los Angeles — surrounding a wreath with the message: “Kobe we love you RIP.”

Some in the crowd dabbed tears as others laid flowers and basketball sneakers at the wreath. Fans wore both his No. 24 and No. 8 jerseys, breaking the somber mood with occasional chants of “Kobe, Kobe.”

Hours later inside the arena, musicians and performers paid tribute to Bryant from the stage of the Grammy Awards.

One of a handful of internationally recognized athletes known simply by their first names, Bryant was an avid supporter of soccer and women’s basketball. He spoke Spanish as well as Italian, having spent part of his youth in Italy, where his father, former NBA player Joe “Jellybean” Bryant, played several seasons professionally.

He also won an Oscar in 2018 as writer-producer of that year’s best animated short film, “Dear Basketball,” which Bryant also narrated, and he sometimes mingled with show-business stars in Los Angeles.

‘MUCH MORE THAN AN ATHLETE’
“Most people will remember Kobe as the magnificent athlete who inspired a whole generation of basketball players. But I will always remember him as a man who was much more than an athlete,” Kareem Abdul-Jabbar, the all-time NBA scoring leader and former Laker, said on Twitter.

Bryant was accused of sexual assault in 2003 by a woman who worked at a Colorado hotel, tarnishing his reputation and leading to a media storm surrounding the case. Bryant denied the allegations, and charges eventually were dismissed after his accuser refused to testify.

Bryant and his wife filed for divorce in 2011 after 10 years of marriage, but the couple said in 2013 they had reconciled.

Besides Gianna, they had three other daughters: Natalia, Bianca, and Capri who was born in June 2019.

Bryant, who played all 20 of his NBA seasons with the Lakers, also won two Olympic gold medals as a member of the US men’s basketball team in 2008 and 2012.

Nicknamed “The Black Mamba,” he became eligible to enter the Hall of Fame this year and is certain to be selected when the 2020 class is enshrined.

Bryant demonstrated from an early age he would surpass the accomplishments of his father, who played eight seasons in the NBA.

The Philadelphia native went straight from high school to the NBA, skipping the college ranks. Since he was just 17 years old at the time, his parents needed to co-sign his first contract with the Lakers. He played his first game with the team shortly after turning 18 in 1996.

He was the third-leading scorer in league history with 33,643 points, until LeBron James surpassed him on Saturday. In his final tweet, Bryant saluted James’ achievement, writing: “Continuing to move the game forward @KingJames. Much respect my brother.” — Reuters

Local basketball community mourns death of NBA legend Kobe ‘Black Mamba’ Bryant

By Michael Angelo S. Murillo
Senior Reporter

NATIONAL Basketball Association legend Kobe Bryant loved the Philippines and, in turn, the country loved him back. So when news of the untimely death of the many-time Manila visitor on Monday (Manila time) broke out, Filipinos mourned and expressed their love and respect for the “Black Mamba.”

The local basketball community, in particular, was one in grieving after it was reported that the five-time NBA champion and hoops icon was one of nine people who died in a helicopter crash in California.

Mr. Bryant was 41 years old at the time of his death. Also perishing in the crash was his daughter Gianna, 13. They were reportedly on their way to a basketball tournament for young players.

As was the case in different parts of the world, local basketball stakeholders received the sad news with much shock and disbelief.

“Damn. I have no words,” wrote sportscaster Jinno Rufino on his Twitter account of the passing of Mr. Bryant, who visited the Philippines many times during his Hall-of-Fame NBA career and brand ambassador for global brand Nike.

“Still can’t believe it until now #mambaout,” former Gilas Pilipinas and Philippine Basketball Association coach Chot Reyes, for his part, tweeted.

Drafted by the Los Angeles Lakers at number 13 in the 1996 NBA rookie draft, Mr. Bryant achieved greatness in 20 years in The Association, all with the purple and gold, winning league titles and individual awards while putting his name in the record books in so many categories.

He also served as inspiration to countless players of a generation who looked up to him for how he carried himself both on and off the court.

“Lost for words. No the news i wanted to hear when i woke up. Life’s short man. Appreciate everybody around you to the fullest! Do not take anything for granted. You were one of the reasons i played the sport, Kobe. You are the reason why i want to be great,” wrote Gilas and NLEX Road Warriors player Kiefer Ravena on Twitter in sharing what Mr. Bryant meant to him as a player.

“Your IMPACT and LEGACY canNOT be explained in words. Thoughts and prayers out to you and your family. #RIPMamba #RIPGiGi,” PBA veteran guard Sol Mercado said from his end.

PBA imports also shared their thoughts on the passing of Mr. Bryant, who first visited the country in the late 1990s while he was still building his legend with the Lakers.

“RIP to the best player i’ve ever played against!!! He made a kid from West Virgina believe he could make it too with some hard work and dedication!!! #24/8 #MambaMentality,” NLEX and Blackwater reinforcement and former NBA campaigner Henry Walker tweeted.

Three-time PBA best import awardee Allen Durham of the Meralco Bolts underscored the legend that Mr. Bryant was, saying, “Gone way too soon, I appreciate everything you gave to us. R.I.P LEGEND.”

The last time Mr. Bryant was in the Philippines was in 2016 as part of his “Mamba Mentality Tour” and after playing his final season in the NBA.

Filipinos showed their appreciation to the NBA legend as they flocked to the Araneta Coliseum where he was honored.

A banner was raised as a tribute to him, joining that of “Thrilla In Manila” banner lionizing the historic fight between Muhammad Ali and Joe Frazier which was held in the venue in 1975.

“I just want to say thank you so much for inspiring me on this journey,” Mr. Bryant said, thanking the Filipino fans.

Adiwang out to make it a ONE Manila debut to remember

By Michael Angelo S. Murillo
Senior Reporter

SET TO TAKE make his Manila debut for ONE Championship, Team Lakay fighter Lito “Thunder Kid” Adiwang said he is very excited to fight in front of the hometown fans and make it an event to remember.

To take on Thai Pongsiri Mitsatit in a strawweight preliminary fight at “ONE: Fire & Fury” on Jan. 31 at the Mall of Asia Arena, Mr. Adiwang (10-2) is expecting tough competition but nonetheless expressed his readiness to compete.

“I feel confident heading into this match-up. I love Pongsiri’s style. He’s an exciting fighter. It just gives me more motivation and confidence knowing I am up against a good challenge,” said Mr. Adiwang, who is riding a six-fight winning streak.

The Baguio-based fighter added that fighting alongside his Lakay teammates makes his upcoming fight all the more significant for him.

Apart from him, Team Lakay’s Joshua Pacio is also in action, defending his ONE world strawweight title against Brazilian Alex Silva in headlining fight.

Also in the card for Team Lakay are former ONE lightweight champion Eduard Folayang, Danny “The King” Kingad, and Gina “Conviction” Iniong.

Mr. Adiwang topped the ONE Warrior Series last year to earn a contract with Asia’s largest sports media property.

He had a winning debut in ONE’s main draw in October, defeating former Pancrase champion Senzo Ikeda at the landmark “ONE: Century” event in Japan.

Known for his striking, Mr. Adiwang delivered a different facet of his game against Mr. Ikeda, scoring an early takedown and immediately executed a scarf-hold armlock. The bout was stopped just moments later after the Japanese suffered an injury to his arm, giving the stoppage win to the Filipino.

It’s the same aggressiveness that he is angling to bring at Fire & Fury.

“This is my first fight in Manila with ONE Championship, so naturally, I am really excited to fight in front of my countrymen. Filipino fans are the best in the world, and I cannot wait to bring the heat,” said Mr. Adiwang.

“I am heading into this fight full of confidence. I know I am going to win. That is my mindset right now. The only thing left to do is perform to the best of my abilities. Then, I will claim victory. I want to win this fight in an impressive way. I want the finish, whichever way it comes — on the feet or on the ground,” he added.

Ju Wenjun is still champ

Women World Chess Championship
Shanghai / Vladivostok
Jan. 5–24, 2020

Final Standings:

Ju Wenjun CHN 2584, 3 wins 6 draws 3 losses, 6.0/12

Aleksandra Goryachkina RUS 2578, 3 wins 6 draws 3 losses, 6.0/12

Tie-breaks:

Ju Wenjun defeated Goryachkina 2.5-1.5

Time Control:

Regular Match — 90 minutes for the first 40 moves, then 30 minutes play-to-finish, with 30 seconds added to your clock after every move starting move 1

Tie-breaks — 25 minutes for the entire game with 10 seconds added to your clock after every move starting move 1

Women’s World Champion Ju Wenjun.

The 2020 FIDE Women’s World Chess Championship was a 12-game match between Chinese reigning champion Ju Wenjun and Russian challenger Aleksandra Goryachkina, who won the 2019 FIDE Women’s Candidates Tournament. The first six games was played in Ju Wenjun’s hometown of Shanghai, China and the remaining games in Vladivostok, Russia. The prize fund: 500,000 euros, split 60:40, or 55:45 in case of a playoff.

Ju Wenjun (born Jan. 31, 1991, which makes her 28 years of age) was the favorite to win. She is a native of Shanghai and rated 2584, just slightly higher than her challenger’s 2578. If the match goes into rapid tie-breaks Wenjun would have the edge as she is a monster at speed chess, having won the World Rapid Chess Championship in 2017 Riyadh as well as the same championship the next year in St. Petersburg. She did not participate in the 2019 edition held last December, which actually struck me as odd as what better way to stir up the creative juices than 5 days of rapid/blitz chess?

Aleksandra Goryachkina (born Sept. 28, 1998 in Orsk, Russia) is from a chess family — her father, Yuri, is a FIDE Master and her first coach. Her mother is a Candidate Master in chess as well. Outside of chessplaying, Aleksandra is very involved in teaching. Her father is the president of a chess school in Salekhard where she frequently gives master classes.

I thought it strange that the second half of the match was held in Vladivostok because whereas the Chinese defending champion was born and grew up in Shanghai, her Russian challenger’s hometown is Orsk, which is just South of the Urals on the European side of Russia. Vladivostok is on the other side of Russia, the Far East side, on the Sea of Japan not far from Russia’s borders with China and North Korea. It is the home port of the Russian Pacific Fleet.

To illustrate how far that is from Goryachkina’s home, if she went to Moscow to take a train ride to Vladivostok, this is the longest journey you can make on a single train: the longest of the three trans-Siberian routes, between Moscow and Vladivostok, covers 9,258 kilometers and takes seven days.

Contrast this with the distance between Shanghai and Vladivostok which is “only” 1,600 kilometers.

At any rate when the match started in Shanghai it was Ju Wenjun who appeared to be out-of-form and tentative while her challenger pushed hard for the win. They started with 3 hard-fought draws (games took 97, 40 and 85 moves — no short handshakes!) and then Ju Wenjun broke through in game 4 to take the lead. Goryachkina said that she lost the thread of the game but couldn’t quite pinpoint where — her position just kept getting worse and she couldn’t recover.

Ju, Wenjun (2584) — Goryachkina, Aleksandra (2578) [D16]
Wch Women 2020 Shanghai / Vladivostok (4.1), 09.01.2020

1.d4 d5 2.c4 c6 3.Nf3 Nf6 4.Nc3 dxc4 5.a4 e6 6.e3 c5 7.Bxc4 cxd4 8.exd4 Nc6 9.0–0 Be7

By transposition we have a Queen’s Gambit position in which White’s extra move a4 only weakens his queenside. Usually a4 is only a reaction to a6, and here Black can do without a6 altogether. Recent practice confirms she has good chances to achieve equality.

10.d5

Releases the tension in the position some might say too early. However, it appears that Ju’s strategy is to avoid risk and wait for Goryachkina to make a mistake.

10…exd5 11.Nxd5 Nxd5 12.Bxd5 0–0 13.Be3 Bf5 14.Qb3 Nb4 15.Rfd1 Qa5 16.Ne5 Nxd5 17.Rxd5 Qa6 18.Nd7 Be6 19.Nxf8 Kxf8?!

Black’s problems later can be traced to this king move. I will show you later.

20.Qb5 Bxd5 21.Qxd5 Rd8 22.Qe4

See? The h7 pawn is attacked and 22…g6 23.Bh6+ won’t do.

22…h6 23.g3 b6 24.Rc1 f6?

Goryachkina was afraid of White’s Qh7+Rc7 attack, but actually the simple 24…Bf6! was more than adequate. If White pushes through with the Qh7+Rc7 plan then: 25.Qh7 (25.Rc7? right away is a blunder because of 25…Rd1+ 26.Kg2 Qf1+ 27.Kf3 Qh1+ and White loses her queen after 28.Kf4 Bg5+ 29.Ke5 f6+ 30.Kf5 g6+ etc) 25…Qd3! and now White has to exchange queens, otherwise 26.Qh8+? Ke7 27.Rc7+ Ke6 the queen on a8 is trapped.

25.Kg2 Rc8 26.Rxc8+ Qxc8 27.Qd5 Ke8 28.h4! Qd7 29.Qg8+ Bf8 30.Qc4 h5

Preventing white’s h4–h5. Ju Wenjun for the first time has the advantage out of the opening and the accuracy with which she executes the winning technique is impressive.

31.Kh2!

Getting out of possible checks on the long diagonal.

31…Be7 32.b3 Kf8 33.Qc2 Bd6 34.Qe4 Bc5

Goes against the rule that when you are up, swap pieces, when you are down, swap pawns.

35.Bxc5+ bxc5 36.a5!

Bringing the pawn to a6 to ensure that she always has the threat of Qb7.

36…Qe7 37.Qa8+ Kf7 38.a6 g6 39.Qd5+ Kg7 40.Qb7 Kf8 41.Kg2!

With the long diagonal firmly under her control Ju now brings her king up the board.

41…Ke8 42.Qa8+ Kf7 43.Qd5+ Kg7 44.Kf3 Kf8 45.Qb7 Ke8 46.Qd5?!

The pawn endgame after: 46.Qxe7+! Kxe7 47.g4! is won for White. No matter, Wenjun must have realized the same thing after she made her move, for now she tries to “rewind” and get the same position.

46…Kf8 47.Kf4 Qc7+ 48.Ke3 Qc8 49.Qb7 Qd8 50.Kf3 Qe7 <D>

POSITION AFTER 50…QE7

Rewind accomplished. This time Ju does not hesitate.

51.Qxe7+! Kxe7 52.g4 Kd6 53.gxh5 gxh5 54.Ke4 Kc6 55.f4 Kb5 56.Kd5!

White needs to be precise. 56.Kf5? would have thrown away the win: 56…Kb4! 57.Kxf6 Kxb3 58.Kg6 c4 59.f5 c3 60.f6 c2 61.f7 c1Q 62.f8Q it looks like a draw.

56…f5

The drawing method I showed you in the previous move does not work now: 56…Kb4 57.Kc6 f5 58.Kd6 Kb5 59.Kc7! Kb4 (59…Kxa6 60.Kc6) 60.Kc6.

57.Kd6 Kb6 58.Kd7!

The Black King is forced out of action.

58…Ka5 59.Kc7 Kxa6 60.Kc6 Ka5 61.Kxc5 Ka6 62.b4 Kb7 63.Kd5 1–0

Goryachkina struck back in game 5 to equalize the score. In game 6 Goryachkina again got a big advantage with calm and measured play but, as in games 1 and 3, she was not able to build on her advantage and after the 1st time control the worst was behind Ju and a draw was agreed on the 105th (!) move.

The match then took a 3-day break. The common wisdom is that if the match is tied going into the Vladivostok half then the momentum would shift to Goryachkina. That was not what happened.

In game 7 for the first time it was Ju who got a very comfortable position from the opening and Goryachkina was reduced to sitting back and waiting for her Chinese foe to break through. Aleksandra defended extremely well and held the draw in 67 moves.

Wenjun had problems with Black throughout the match and game 8 was a disaster — she went into an inferior line and Goryachkina pounced on it to win in 45 moves to go one up.

With her back against the wall Ju Wenjun went into game 9 wearing a black jacket with “whatever” embroidered on the back and she went for broke, playing in a very risky style which paid off when Goryachkina went astray in approaching time trouble. Once again the match was tied.

In Game 10 Ju Wenjun won again to grab the lead for the second time in the match. Aleksandra equalized out of the opening but mis-assessed her position and erred through an unjustified winning attempt.

The roles were reversed as it was Goryachkina who was now behind and needed at least one win in the final two games to draw level. Game 11 was drawn and, in the last game of the match, in a win-or-go-home situation, Aleksandra unleashed the Jobava Attack and, after an eventful game where both sides fought hard, took advantage of a blunder by Ju to win and tie the match and force tie-breaks.

The tie-breaks were played the next day. This was a 4-game match at 25 minutes each with 10 second increment after every move. Ju won 1 and drew 3 to finally close out the match and retain her title as women’s world champion, although even here in the faster time controls Goryachkina proved herself to be a tough customer and had her winning chances as well.

This was a roller-coaster of a match and both sides should be commended for fighting to the end in every game. At the end, the difference between the two came down to the so-called killer instinct. Excellent opening preparation gave Goryachkina a big advantage in at least 4 of the games but, in the face of continuous resourceful defense she just couldn’t nail down the full point. In the case of Ju Wenjun once she got the advantage more often than not that was it.

We will continue this interesting story on Thursday.

 

Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas (UST) for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net

Kobe Bryant, 41

Death is never easy to take, and, for obvious reasons, among the hardest to process is that of a sports figure who transcended his or her calling. It’s why the passing of Kobe Bryant yesterday came as a shock even to casual observers with little or no regard for basketball. In life, he evoked emotions few others in his profession could. And in the absence of life, he generated an outpouring of sympathy and grief. It wasn’t simply that he went too soon at 41, and under tragic circumstances — his daughter Gianna, all of 13, by his side. It was that he went not on his own terms, and, therefore, not on terms all and sundry could accept.

Indeed, Bryant was used to having his way. He was already all fire when he burst into the National Basketball Association as a 13th overall pick out of high school in 1996, confident of his abilities and determined to show not just that he could take the measure of the greats before him, but that he could best every single one of them. Time was the only element he figured to be up in the air, and it was on his side. Everything was a matter of when, not if. And true enough, he didn’t need to wait long to reach the pinnacle of success. He was with the league’s most popular franchise in the Lakers, with the league’s most dominant player in Shaquille O’Neal, and his growth coincided with creation of a modern-day dynasty.

In retrospect, Bryant was destined to scuttle the partnership as well. He couldn’t co-exist with O’Neal, if for no other reason than because he had to be the Lakers’ Number One — okay, only — option. His will to win was legendary, and he suffered no slouches who displayed a work ethic an iota less focused than his. He had talent, but it was his determination that allowed him to stand out. On the court, there was no endeavor he didn’t relish, no challenge he couldn’t accept, no hurdle he didn’t conquer. There may be no “I” in “TEAM,” but he managed to force-fit it, anyway. And who can argue with the results? Five championship rings, two Finals Most Valuable Player awards, 18 All-Star berths, and more: All these speak to the resolve with which he mastered his craft.

Bryant would mellow in his later years, and his position as elder statesman eminently satisfied with his accomplishments suited him. He reveled in his newfound roles as mentor to the stars, as revered great, and as friend to all — even to O’Neal. He stayed away from the NBA for the most part, but seemed to be more visible in recent memory due to his daughter’s increasing love for the sport. They were, in fact, on their way to a game when they lost their lives. Now, they’ll be watching elsewhere, and they will be missed.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

What’s next for QBO Innovation Hub in 2020

The local startup community capped off 2019 with a nationwide series of learning and networking events, Philippine Startup Week 2019. It was a first-of-its-kind undertaking that brought together thousands of startup enablers, evangelists, and enthusiasts, culminating in the signing of the Innovative Startup Act’s implementing rules and regulations.

For QBO Innovation Hub, PH Startup Week’s organizers, it was a six-week sprint from the moment they learned they would be spearheading the project to its opening ceremony.

This year, in addition to their existing core services of bootcamps, consultations, incubation, and community events (including Philippine StartUp Week 2019), QBO is unveiling a new slate of offerings to empower the local startup community.

Katrina Chan says 2020 inaugurates the “decade of Filipino startups”, which she believes will see the creation of millions of jobs, countless new platforms born and bred in the Philippines, and the creation of the country’s first unicorns.

“The goal is to grow the number of startups participating in the ecosystem, and to develop our startup companies to help them mature,” she said.

Here are some of the new projects, updates, and revamps Katrina announced during QBO’s year-started event held on Wednesday:

  • an expanded national roadshow hitting new cities, with more startup competitions facilitated by both QBO and its partner incubators
  • Crash Course, a program to develop and validate innovative ideas into full-fledged startups (with the goal of doubling the number of startups in the community)
    an incubation (styled INQBATION) program offering customized, high-touch support for startups–this year focusing on strategic partners with the goal of landing more exits from the community
  • a regular investor newsletter with profiles of exciting startups to rally the local investor community in order to address investment support
  • collaboration programs spanning deeper support for their network of incubators and corporate-startup engagement programs
  • and a recently green-lit Philippine StartUp Week 2020 (Katrina says that while they pulled off last year’s iteration with only six weeks of planning, the full year’s notice is much appreciated).

“Through bayanihan and working together, we can create something super awesome,” Katrina said.

QBO began operations in April 2017 as the first stage-agnostic and multi-sectoral platform for Filipino startups. It is a public-private partnership supported by Ideaspace, the Department of Trade and Industry, and J.P. Morgan.

Taal residents return home after alert status lowered

RESIDENTS from several towns around Taal Volcano in Batangas province were allowed to return home on Sunday after the state seismologist lowered the alert status, citing a “decreased tendency toward a hazardous eruption.”

Batangas Governor Hermilando Mandanas lifted the lockdown in the towns of Alitagtag, Balete, Cuenca, Lemery, Malvar Mataasnakahoy, San Nicolas, Sta. Teresita, Taal and Talisay, and Tanauan and Lipa cities, all within the 14-kilometer danger zone.

Residents of Taal Volcano Island, which remained on a permanent lockdown, were barred from going home. The municipalities of Agoncillo and Laurel, which are seven kilometers away from the volcano, remained on lockdown.

The Philippine Institute of Volcanology and Seismology (Phivolcs) lowered Taal Volcano’s alert status to level 3 from 4 on Sunday morning, ending a two-week crisis that displaced at least a million people.

Phivolcs recorded fewer earthquakes around Taal, while gas and steam activity had eased, Phivolcs Director Renato U. Solidum, Jr. said at a briefing streamed on Facebook.

The agency recorded only 27 “significant earthquakes,” down from 959 a day from Jan. 12 to 24, it said in an 8 a.m. report.

Activity at the Taal Main Crater also eased to “infrequent weak ash eruptions and longer episodes of degassing or steaming” that generated steam-laden plumes that were less than a kilometer tall.

“This marked decline coupled with volcanic earthquake activity suggests stalling, degassing and reduction in gas pressures of eruptible magma in the shallow magmatic region that feeds surface eruptive activity,” Phivolcs said.

“Residents of all towns under lockdown except Agoncillo and Laurel now have the option to return to their respective residences or places of work,” Mr. Mandanas said at a televised briefing from Batangas.

Mr. Mandanas and other top local officials cheered after a representative from Phivolcs announced the alert status had been lowered.

In Lemery, hundreds of residents aboard vehicles rushed to the town after police allowed them entry past 9 a.m. One of them was Annabel Enriquez, who said they have been waiting at the checkpoint since 4 a.m.

Evacuation centers will remain open for residents who need a temporary shelter, the governor said. He also urged people to be wary of ashfall and other health hazards.

Agoncillo Mayor Daniel Reyes asked Mr. Mandanas to lif the lockdown in their area because only two villages are within the seven-kilometer danger zone.

“In case we are allowed to go home, we will be ready in case another eruption occurs,” he told dzBB radio in Filipino.

Phivolcs said the level of sulfur dioxide emissions steadied at an average of 250 tons per day in the past five days, which is “consistent with a progressively degassed shallow magma source and diminished plume activity.”

“People are also advised to observe precautions due to ground displacement across fissures, frequent ashfall and minor earthquakes,” it said.

The agency noted, however, that lowering the volcano’s alert level “should not be interpreted that unrest has ceased or that the threat of a hazardous eruption has disappeared.”

The alert status will be lowered by another step if the volcano’s activity continues to subside, it said.

More than 98,000 families in Batangas, Quezon, Laguna and Cavite provinces were affected by the volcano’s eruption, according to the local disaster agency’s 6 a.m. report on Sunday.

About 37,000 families were taking temporary shelter in 497 evacuation centers, while 43,824 families were being served outside them, it said. — Genshel L. Espedido and Emmanuel Tupas, Philippine Star

Higher FDI seen with CITIRA in place

FOREIGN INVESTORS could pour in more than $10 billion in the Philippines once a measure that seeks to lower corporate income tax is enacted, central bank Governor Benjamin E. Diokno said last week.

“Our estimate is around $8 billion but that’s early in the game,” he told reporters on the sidelines of a Bangko Sentral ng Pilipinas event on Friday. He added that the amount could exceed $10 billion yearly once the proposed Corporate Income Tax and Incentives Rationalization (CITIRA) Act is put in place.

The bill, which will gradually cut corporate income tax to 20% from 30%, will also remove redundant fiscal incentives. Finance Secretary Carlos G. Dominguez III earlier said he expects the law by March.

Mr. Diokno is bullish that the Philippines remains a strategic target for foreign direct investments (FDI) amid global uncertainties. “There are few countries that you want to invest in right now,” he said. “The Philippines is one.”

FDI net inflows rose by a third to $672 million in October from a year earlier, according to data from the Bangko Sentral ng Pilipinas (BSP). Yearly FDI net inflows declined in the past seven months before that.

FDI net inflows worth $5.8 billion for January to October, however, were a third lower than a year earlier, reflecting subdued investor sentiment due to sluggish global economic activity, BSP said.

In comparison, Vietnam received $11.96 billion worth of FDI for the eight months through August, 6.3% higher than a year earlier, Reuters reported, citing the Ministry of Planning and Investment. Indonesia got $7 billion in FDI in the third quarter alone, up 17.8% year on year.

The Philippine central bank expects FDI net inflows to hit $8.8 billion this year, higher than its $6.8 billion target for 2019.

Cheuk Wan Fan, chief market strategist for Asia at the Hongkong and Shanghai Banking Corp., earlier said Philippine FDI this year would probably remain at the same level if uncertainties about the proposed income tax law remained unresolved.

Slowing foreign direct investments in the Philippines is a downside risk to the growth outlook this year, Fitch Solutions Macro Research said in a note on Friday.

The research firm has upgraded its 2020 growth forecast to 6.3% from 6.1%, lower than the government’s 6.5% to 7.5% target for the year.

PEZA PROPOSES CHANGES
Meanwhile, the Philippine Economic Zone Authority (PEZA) has submitted its proposed enhancements to tax bill to the Department of Trade and Industry (DTI) after meeting with industry stakeholders.

The agency in October reversed its stance seeking exemption from the bill rationalizing tax incentives and reducing corporate income tax for investors, proposing changes instead.

PEZA proposed to retain an investment promotion agency’s ability to give incentives, instead of submitting recommendations to a fiscal incentive review board (FIRB) headed by the Finance secretary, according to an e-mailed document.

“Creating another layer of investment approval through the FIRB is an anathema to efficiency-seeking investments that go to PEZA,” PEZA Director General Charito B. Plaza said in an accompanying letter. “This will unduly add burden to what is now a very simple and very straightforward approval and registration process in PEZA.”

PEZA wants four to eight years of income tax holidays (ITH) for new projects.

Under the bill approved by the House of Representatives, investment projects in Metro Manila will have an ITH of up to three years. Areas adjacent to Metro Manila will enjoy four years of ITH, and other areas will be given six years.

PEZA also proposed an alternative of four years’ ITH for Metro Manila enterprises, six years for Metro Manila-adjacent projects and up to eight years for all other areas.

After the expiration of the ITH, PEZA export-supporting enterprises will pay 7% tax on gross income in lieu of national and local taxes for 20 years.

Alternatively, export companies in economic and freeport zones may choose to pay the reduced corporate income tax, which would otherwise be required from all companies.

The agency also proposes a 5% tax on gross income for 20 years on garments, apparel, textile, leather goods and footwear industries.

PEZA also wants spare part imports to be exempted from duty. These include aviation parts for repair, overhaul and maintenance. — Luz Wendy T. Noble and Jenina P. Ibañez

PHL economic risks from China virus downplayed

BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E. Diokno downplayed economic risks that may arise from the continued spread of the novel coronavirus from Wuhan, saying the Philippines’ exposure to China is not that significant.

Mr. Diokno assured that the Philippines’ trade with China is not as significant compared to Beijing’s trade relations with other economies in the Association of Southeast Asian Nations (ASEAN).

“’Yung estimate nila, di naman tayo masyadong ano (Based on their estimate, we are not so much affected)… Siguro ’yung merong…there’s a lot of trade with China…like Vietnam or Thailand, ’yun may problema ka talaga ’dun (Maybe countries that have a lot of trade with China like Vietnam or Thailand, they’ll really have a problem),” he told reporters on the sidelines of the BSP’s Annual Reception for the Banking Community held in Manila on Friday.

“Lockdown na rin ’yung province (The province where it originated from [Wuhan] has been locked down), so as long as we don’t get those people, okay lang tayo (we are okay). At saka this is less severe than SARS (Severe Acute Respiratory Syndrome)… Don’t scare yourself. But avoid travelling,” Mr. Diokno said.

Reuters reported that more than 2,000 people around the world have already tested positive for the novel coronavirus. Casualties have also risen to 56 as of early Sunday morning. (Read related story “Over 2,000 infected with coronavirus” on S2/5)

South China Morning Post cited a report released by the Economist Intelligence Unit on Thursday which said the economic impact of the virus for China and potentially elsewhere could be “significant if the virus continues to spread.”

The report added that between 0.5 to 1 percentage point could be reduced from China’s gross domestic product growth in 2020 due to the virus.

Latest data from the Philippine Statistics Authority (PSA) showed China was the biggest supplier of imported goods to the Philippines in November, with a 22.9% share in total imports. Import payments from China rose to $2.05 billion during the month from $1.8 billion in the comparable year-ago period.

As of Sunday, there is no confirmed case of the virus in the country.

EFFECT ON TOURISM
Analysts, meanwhile, said the tourism industry could be affected as the country has seen an influx of mainland Chinese spending their holidays here.

According to data from the Department of Tourism (DoT), China was the second top tourism market of the Philippines, next to South Korea. More than 1.5 million Chinese visited the country in the first 10 months of 2019, 41% higher year on year. This represented 22% of the total 6.74 million foreign tourist arrivals during the January to October period.

“Tourism is first to be hit. People will have to keep away from crowds, so retail and other recreational activities are put on hold,” UnionBank of the Philippines Inc., Chief Economist Ruben Carlo Asuncion said in a text message.

He, however, noted economic risks coming from the virus are still “hard to estimate at this point.”

“Compared to SARS, some say that Chinese authorities are more quick to their feet now,” Mr. Asuncion said.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the effect of the virus on the tourism sector will be “temporary.”

“The Philippine economy, compared to other Asian countries, is less dependent on foreign tourism business as a source of economic growth,” Mr. Ricafort said in a text message.

Data from the PSA showed the tourism industry’s contribution to the gross domestic product (GDP) was at 12.7% in 2018, up by 0.5% from its contribution in the preceding year. This represents P2.2 trillion of GDP.

“The adverse effects of any slowdown in tourism business due to the coronavirus, especially if temporary and contained, could have less impact on the local economy,” Mr. Ricafort added.

Sought for comment, Tourism Secretary Bernadette Fatima T. Romulo-Puyat said they are working closely with DoH on how to handle the situation.

“The DoT relies on the expert and timely advice of the DoH in handling the coronavirus situation. The DoT’s priority at this time is the safety and the welfare of our tourists and local communities,” Ms. Romulo-Puyat said in a text message.

The Civil Aeronautics Board already ordered the suspension of all flights linking Wuhan to the Philippines last Friday.

In a note sent to media on Thursday, Fitch Ratings said global corporates exposed to travel and tourism would be the most exposed to risk of being affected by the coronavirus outbreak.

“The global airlines, gaming, lodging and leisure sectors are vulnerable to pandemics that influence consumer behavior,” Fitch Ratings said in the report.

Fitch noted that among the economies with Chinese travellers making up a significant percentage or more than a third of their total tourists are Hong Kong (78.3%), South Korea (34.7%), Cambodia (32.7%), Vietnam (32.2%) and Japan (30.1%).

“Operational disruptions caused by idiosyncratic events — including disease outbreaks, acts of terrorism and even weather — are a perennial risk faced by these sectors,” it added.

The report said a sharp escalation in the outbreak will mainly affect Asian economies.

“Service sector activity, particularly in fields associated with tourism, would be most vulnerable, which could leave economies such as Thailand, Vietnam and Singapore exposed, along with Hong Kong and Macao, both of which are already on negative outlook,” the report said. — Luz Wendy T. Noble with Reuters

Philippines delisted from EU’s counterfeit watchlist

THE European Union (EU) removed the Philippines from its “priority” counterfeit watchlist, even if it noted that intellectual property (IP) protection in the country has not improved.

The Intellectual Property Office of the Philippines (IPOPHL) said in a statement that this is the first time the Philippines has been delisted from a priority category. The country had been downgraded to “Priority 3” — or the countries of least concern — in 2015.

In its report released on Jan. 8, the European Commission said it will closely monitor the situation in the Philippines and countries like Israel, Morocco, South Africa, Switzerland and United Arab Emirates where IP enforcement is a concern.

“The Philippines was removed from the priority list and included in the group of countries, which need to be closely monitored. This is due to the very few complaints received from stakeholders and the increase in the relative importance of other countries for EU right holders,” the Commission said.

However, the European Commission acknowledged that the situation in the Philippines “has not improved over the years,” citing studies by the EU Intellectual Property Office (EUIPO) and Organisation for Economic Co-operation and Development (OECD).

“According to the EUIPO-OECD studies on Mapping the Real Routes of Trade in Fake Goods (2017), on Trends in Trade in Counterfeit and Pirated Goods (2019) and on Why do countries export fakes? (2018), the Philippines has remained an important country of origin of counterfeit goods destined for the EU in a number of product categories such as leather articles, handbags, pharmaceuticals, footwear, games, toys and sport equipment,” the Commission said.

Another EUIPO-OECD study also showed the Philippines is a top source of small parcel trade in fake jewelry.

IPOPHL Officer-in-Charge Director General Teodoro C. Pascua disputed the European Commission’s claims, saying the studies used a single set of data.

“The data used even dates back to 2011 to 2013. Several actions on improving IPR enforcement have been made since then,” Mr. Pascua said in a statement.

Although the 2019 study aimed to recalibrate the findings with updated data and enhanced methodology, he noted the findings were presented in ways that make them unsuitable for comparison.

“The first study assessed provenance economies on a per-sector basis and ranked them on their likelihood of being either a fake-goods producer or transit point for counterfeit trade while the latter ranked the likelihood of an economy in being a provenance economy overall,” Mr. Pascua said.

Mr. Pascua added that IPOPHL has initiated efforts to fast-track decision making for IP cases, after the European Commission raised concerns in its 2018 report. IPOPHL collaborated with the judiciary to revise the Special Rules on IP for Litigation.

“We expect that once IPOPHL’s efforts in the last quarter of 2019 are factored in, including the manifold projects and programs we intend to take in the next few years, the European Commission will give a more positive evaluation of the Philippines in its next report,” he said. — Jenina P. Ibañez

Regulator drafts rules on financial derivatives

Securities and Exchange Commission (SEC) logo

THE Securities and Exchange Commission (SEC) is seeking to revise rules on financial derivatives to “improve the regulatory compliance of investment companies and their fund managers and ensure adequate protection to shareholders and unitholders.”

The country’s corporate regulator released draft rules on investment in financial derivatives last Friday.

“[T]he Commission seeks to align the rules with global standards and practices in order to develop the Philippine capital market that will help prepare the investment companies qualify and compete in international cross-border transactions,” the SEC said.

At present, the implementing rules and regulations (IRR) of Republic Act No. 2629 or the Investment Company Act provides the basic rules for financial derivatives.

Derivatives are types of investments wherein an investor does not own the underlying asset, but instead makes a bet on the direction of the price movement of the underlying asset through an agreement with another party.

The SEC’s draft rules include additional requirements for financial derivatives and investment limits in the security.

Under the draft, the underlying of a financial derivative should also include the “rate of inflation, calculated, endorsed or determined by a government or government agency.” The underlying of a derivative currently consists of eligible assets, financial indices, foreign exchange rates or currencies and interest rates.

The SEC also proposed to include a limit on investments in over-the-counter (OTC) financial derivatives issued by any single business group. A qualifying collective investment scheme (CIS) must not invest, in aggregate, more than 20% of its net assets in OTC financial derivatives, in addition to transferable securities, money market instruments and deposits.

Also, the corporate regulator proposes to increase the aggregate limit to 15% from 10% for investments in deposits placed with unrated or non-investment grade institutions; unrated debt securities or those that are not dealt in an organized market; in unlisted shares; and OTC financial derivatives with non-investment grade or unrated counterparty.

“For the avoidance of doubt, the exposure to a counterparty of an OTC financial derivative should be measure based ‘on the maximum potential loss that may be incurred by the qualifying CIS if the counterparty defaults,’” the draft read.

In terms of risk management, the SEC is looking to raise the limit for global exposure of financial derivatives to 20% of the net assets of the investment company from 10% previously.

The SEC said the investment company is expected to be capable of meeting its payment and delivery obligations at all times. Its exposure to the underlying assets must not exceed, in aggregate, the investment limits as previously set in the Investment Company Act.

The corporate regulator is also putting a limit to the maximum exposure of an investment company in the counterparty of a financial derivative: it must not go above 10% of the company’s net assets if the counterparty has a minimum long-rating of investment grade, otherwise the limit is 5%.

The SEC is seeking comments from the public until Feb. 7. — Denise A. Valdez

How undervalued the Philippine peso is compared with other currencies: a look at the Big Mac index

How undervalued the Philippine peso is compared with other currencies: a look at the Big Mac index

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