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First relief convoy enters Gaza devastated by ‘nightmare’ war
The first aid trucks arrived in war-torn Gaza from Egypt on Saturday, bringing urgent humanitarian relief to the Hamas-controlled Palestinian enclave suffering what the UN chief labelled a "godawful nightmare". Israel has vowed to destroy Hamas after the Islamist militant group carried out the deadliest attack in the country's history on October 7. Hamas militants killed at least 1,400 people, mostly civilians who were shot, mutilated or burnt to death, and took more than 200 hostages, according to Israeli officials. Israel has retaliated with a relentless bombing campaign on Gaza that has killed more than 4,300 Palestinians, mainly civilians, according to the Hamas-run health ministry. An Israeli siege has cut food, water, electricity and fuel supplies to the densely populated and long-blockaded territory of 2.4 million people, sparking fears of a humanitarian catastrophe. AFP journalists on Saturday saw 20 trucks from the Egyptian Red Crescent, which is responsible for delivering aid from various UN agencies, pass through the Rafah border crossing from Egypt into Gaza. The crossing -- the only one into Gaza not controlled by Israel -- closed again after the trucks passed. The lorries had been waiting for days on the Egyptian side after Israel agreed to a request from its main ally the United States to allow aid to enter. UN chief Antonio Guterres warned Friday that the relief supplies were "the difference between life and death" for many Gazans, more than one million of whom have been displaced. "Much more" aid needs to be sent, he told a peace summit in Egypt on Saturday. US Secretary of State Antony Blinken welcomed the aid and urged "all parties" to keep the Rafah crossing open. But a Hamas spokesman said "even dozens" of such convoys could not meet Gaza's needs, especially as no fuel was being allowed in to help distribute the supplies to those in need. 'Reeling in pain' Tens of thousands of Israeli troops have deployed to the Gaza border ahead of an expected ground offensive that officials have pledged will begin "soon". As international tensions soar, Egyptian President Abdel Fattah al-Sisi was hosting a peace summit in Cairo on Saturday attended by regional and some Western leaders. "The time has come for action to end this godawful nightmare," Guterres told the summit, calling for a "humanitarian ceasefire". The region "is reeling in pain and one step from the precipice", he said. Guterres said "the grievances of the Palestinian people are legitimate and long" after "56 years of occupation with no end in sight". But he stressed that "nothing can justify the reprehensible assault by Hamas that terrorised Israeli civilians". "Those abhorrent attacks can never justify the collective punishment of the Palestinian people," he added. Egypt, historically a key mediator between Hamas and Israel, has urged "restraint" and the relaunch of the long-frozen peace process. But diplomatic efforts to end the violence have made little headway, without the participation of Israel and its enemy Iran, a supporter of Hamas and other armed groups. 'Sliver of hope' A full-blown Israeli ground offensive carries many risks, including to the hostages Hamas took and whose fate is shrouded in uncertainty. So the release of two Americans among the hostages -- mother and daughter Judith and Natalie Raanan -- offered a rare "sliver of hope", said Mirjana Spoljaric, president of the International Committee of the Red Cross. US President Joe Biden thanked Qatar, which hosts Hamas's political bureau, for its mediation in securing the release. He said he was working "around the clock" to win the return of other Americans being held. Natalie Raanan's half-brother Ben told the BBC he felt an "overwhelming sense of joy" at the release after "the most horrible of ordeals". Hamas said Egypt and Qatar had negotiated the release and that it was "working with all mediators to implement the movement's decision to close the civilian (hostage) file if appropriate security conditions allow". Traumatised families with loved ones missing in Gaza demanded more action. "We ask humanity to interfere and bring back all those young boys, young girls, mothers, babies," Assaf Shem Tov, whose nephew was abducted from a music festival where Hamas killed hundreds, said Friday. Devastation Almost half of Gaza's residents have been displaced, and at least 30 percent of all housing in the territory has been destroyed or damaged, the United Nations says. Thousands have taken refuge in a camp set up in the city of Khan Yunis in southern Gaza. Fadwa al-Najjar said she and her seven children walked for 10 hours to reach the camp, at some points breaking into a run as missiles struck around them. "We saw bodies and limbs torn off and we just started praying, thinking we were going to die," she told AFP. In Al-Zahra in central Gaza, Rami Abu Wazna was struggling to take in the destruction wreaked by Israeli missile strikes. "Even in my worst nightmares, I never thought this could be possible," he said. Israel's operation will take not "a day, nor a week, nor a month" and will result in "the end of Israel's responsibilities in the Gaza Strip", Defence Minister Yoav Gallant warned on Friday. Regional tensions flare In Gaza, retired general Omar Ashour said the destruction was "part of a clear plan for people to have no place left to live". "This will cause a second Nakba," he added, referring to the 760,000 Palestinians who were expelled from or fled their homes when Israel was created in 1948. The United States has moved two aircraft carriers into the eastern Mediterranean to deter Iran or Lebanon's Hezbollah, both Hamas allies, amid fears of a wider conflagration. Fire across Israel's border with Lebanon continued overnight, with one Israeli soldier killed, Israeli public radio said. The military said it hit Hezbollah targets after rocket and missile fire. Violence has also flared in the West Bank, where 84 Palestinians have been killed since October 7, according to the Palestinian health ministry. The post First relief convoy enters Gaza devastated by ‘nightmare’ war appeared first on Daily Tribune......»»
Oil prices jump as Hamas attack on Israel fuels supply fears
Oil prices rallied while the dollar and yen advanced Monday after Hamas launched a shock attack on Israel at the weekend, sparking fresh concerns about tensions in the Middle East. The crisis fanned concerns about supplies of crude from the region at a time when supply worries are already high owing to Saudi Arabia and Russia's output cuts. It has also renewed fears about the impact on inflation, with energy costs a key driver of spiking prices, giving a fresh headache to central banks as they try to ease up on interest rate hikes to avoid recessions. The surprise attack and Israel's declaration of war in response to it have left more than 1,000 dead and raised concerns that a potential broadening of the conflict could draw in the United States and Iran. "Key for markets is whether the conflict remains contained or spreads to involve other regions, particularly Saudi Arabia," said ANZ Group's Brian Martin and Daniel Hynes. "Initially at least, it seems markets will assume the situation will remain limited in scope, duration, and oil-price consequences. But higher volatility can be expected." Both main contracts surged more than five percent in early Asian business before easing back as the day wore on. However, SPI Asset Management's Stephen Innes warned: "Historical analysis suggests that oil prices tend to experience sustained gains after the Middle East crises. "Meanwhile, stocks tend to eventually recover and trend higher after an initial period of volatility. Safe-haven assets like gold and Treasurys, which initially see gains during such crises, tend to fade from their initial price spikes as the situation stabilizes. "But with Middle East analysts considering this to be a pivotal moment for Israel, the view looks incendiary in any current scenario." A decidedly risk-off mood also saw investors push into the safety of the dollar, which was up against the pound and euro, as well as the Australian and New Zealand dollars. The yen, considered one of the safest currencies, strengthened against the greenback, though it still remains locked around 11-month lows. Gold, another key haven, gained more than one percent. Equity markets were mixed, with Shanghai dropping on its first day back after a week-long holiday as investors continue to fret over the stuttering Chinese economy. There were also losses in Mumbai, Singapore, Manila, Bangkok and Wellington, though Hong Kong rose as it opened in the afternoon, having been closed in the morning owing to a typhoon. Sydney and Jakarta eked out gains. Tokyo was closed for a holiday. London edged up at the open while Paris and Frankfurt were lower. The tepid performance came despite a rally on Wall Street, where traders welcomed data showing a forecast-busting jump in new jobs but wage growth slowing. The "Goldilocks" figures -- neither too strong nor too weak -- lifted optimism the world's top economy can avoid a recession even as the Federal Reserve keeps rates elevated. Still, there are worries the bank will hike one more time before the end of the year, with officials determined to bring inflation to heel and keep it at their two percent target. Key figures around 0715 GMT West Texas Intermediate: UP 3.5 percent at $85.69 per barrel Brent North Sea crude: UP 3.1 percent at $87.23 per barrel Hong Kong - Hang Seng Index: UP 0.4 percent at 17,552.01 Shanghai - Composite: DOWN 0.4 percent at 3,096.92 (close) London - FTSE 100: UP 0.3 percent at 7,518.16 Tokyo - Nikkei 225: Closed for a holiday Euro/dollar: DOWN at $1.0540 from $1.0588 on Friday Pound/dollar: DOWN at $1.2195 from $1.2234 Dollar/yen: DOWN at 149.15 yen from 149.30 yen Euro/pound: DOWN at 86.49 pence from 86.52 pence New York - Dow: UP 0.9 percent at 33,407.58 (close) (Bloomberg News contributed to this story) The post Oil prices jump as Hamas attack on Israel fuels supply fears appeared first on Daily Tribune......»»
Phl economy still strongest this year — RCBC
The Philippine economy will remain among Asia’s strongest in the fourth quarter despite a possible higher interest rate because of strong consumer demand for certain products and services and more employed Filipinos, the chief economist of Rizal Commercial Banking Corporation said Saturday. “This growth forecast is still among the fastest in the region because our economy is doing well,” RCBC’s Michael Ricafort said. The World Bank recently downgraded this year’s Philippine economic growth to 5.6 percent from 6 percent due to inflation risks, apart from lower government spending and weaker demand for exports. However, it is still higher than China’s 5.1 percent, Indonesia’s 4.9 percent, and Malaysia’s 4.3 percent growth forecast. Ricafort said the Bangko Sentral ng Pilipinas (BSP) might raise its policy rate this year to slow inflation to 4 percent by year-end after it accelerated again to 6.1 percent last month. “The BSP is working to bring down prices of goods and services. As an unintended consequence, the economy could slow down. Borrowing costs for business owners also increase and consumer demand weakens,” he said. Ricafort said global oil prices have started falling which could discourage the central bank from raising its rate drastically. “Global oil prices have declined to $82 to $83 per barrel from a peak of $95 per barrel last month or since the war between oil-rich countries Russia and Ukraine began,” the economist said. He also expected a downtrend in rice prices starting this month as he said local farmers have begun collecting fresh harvests. “Inflation quickened last month mainly from higher prices of rice which accounted for nearly 9 percent of the inflation basket and grew 17 percent year-on-year,” Ricafort said. While a higher interest rate aims to slow consumption, Ricafort said the continued flow of remittances from overseas Filipino workers, or at least 3 percent growth yearly will still support substantial levels of consumer spending, especially during the Christmas season. “That is more than $40 billion a year. That’s the fourth largest in the world after India, China and Mexico,” the economist said. He added more Filipinos or 800,000 could earn from business process outsourcing or BPO this year as the industry’s revenue could rise from $32.5 billion to $59 billion based on data from the Contact Center Association of the Philippines. Another growth area is tourism, which Ricafort said saw 4 million foreign visitors last month, nearing the 4.8 million full-year target of the government. He added higher productivity among Filipinos is also expected as the country’s unemployment rate declined to 4.4 percent in August from 4.8 percent in July, based on data from the Philippine Statistics Authority. Moving forward, Ricafort said the government must improve science and technology education for higher quality jobs and increase spending on infrastructure amid the full reopening of most economies. “We are now fully reopened. Students are also back in schools which encourages putting up food businesses. Labor market in the US also improved which will affect export trade,” he said. Ricafort added the government could continue distributing financial and other assistance to farmers to control inflation. He believed the inflation rate will approach 3 percent next year, close to the ideal 2 percent for healthier economic growth. The post Phl economy still strongest this year — RCBC appeared first on Daily Tribune......»»
Central banks in no rush to cut interest rates
Investors were hoping to hear central banks finally signal this week that they were close to being done raising interest rates in their battle against inflation. Instead, policymakers indicated that high rates are here for a while yet, with more hikes on the cards and few, if any, cuts in the near future. The US Federal Reserve set the tone on Wednesday when it paused its rate-hike campaign but caused a stir by leaving the door open to another increase before the end of the year. The central bank also unsettled investors by saying that only two cuts were expected next year instead of four as anticipated. The Fed has more room to keep its "hawkish" stance as the US economy has performed better than feared despite the rate increases. This firm position is shared by other central banks. Norway's rate hike Thursday was anticipated, but it also warned further tightening was "likely" in December, while ruling out any easing before next year. Growth or inflation This firm tone came "as a surprise to the markets," which have "decided that the peak" of rate hikes is "happening right now," HSBC economist Fabio Balboni told AFP, even though "central banks' communications leave the door open to the possibility to further hikes". It leaves "real uncertainty about the level of inflation next year", he said. Their decision "reflects a compromise between growth and inflation", he added. The rate hikes raise the cost of credit for businesses and consumers, which theoretically in turn reduces demand and inflationary pressures. But if demand slows too much, it runs the risk of triggering a recession. Faced with this dilemma, the European Central Bank (ECB) chose inflation-limiting measures, with a 10th consecutive rate hike. That took its benchmark rate to 4.0 percent, the highest since 1999. "We can't say we have peaked," ECB president Christine Lagarde said, although other officials indicated that the cycle of raising rates might be coming to a close. "Our future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary," the bank's chief economist Philip Lane said Thursday in New York. Return to lower rates There are other signs, however, that rates are reaching their peak. The Bank of England on Thursday announced its first pause on raising rates since December 2021, following a slight decline in UK inflation in August. Switzerland and Japan -- like half of all central banks -- have also chosen to halt raising rates in the past 10 days. "We expect no more rate hikes in the future" for the US, England and Europe central banks, said Balboni. Jennifer McKeown of Capital Economics said she expected the last hikes to come in the fourth quarter, and that the easing cycle would take hold as 2024 approaches. "By this time next year, we anticipate that 21 out of the world's 30 major central banks will be cutting interest rates," she wrote. Although Balboni, taking a more measured stance, said "in the context of weak growth, it will be very complicated to reduce rates" while inflation remains "too high". Instead, he believes reductions to US rates won't be seen until the third quarter of 2024, while the rest of the world will have to wait until 2025 for rate relief. The post Central banks in no rush to cut interest rates appeared first on Daily Tribune......»»
Pause or hike? ECB rate decision on a knife edge
The European Central Bank is walking a tightrope between still-high inflation and a darkening eurozone outlook as it decides whether to lift interest rates again or finally pause its historic hiking cycle. Whether to raise borrowing costs for a 10th straight time when they meet Thursday is shaping up to be rate-setters trickiest decision since the tightening campaign began. The central bank for the 20 countries that use the euro has already lifted rates by 4.25 percentage points since July last year to combat runaway consumer prices. But the Frankfurt institution now finds itself in a "difficult spot," HSBC said in a note, as officials struggle to digest competing data. On one hand prospects for the single currency area are looking bleaker, particularly due to a poor performance in its biggest economy, Germany, which sank into a recession over the winter and is struggling to climb out of it. Latest data showed eurozone second-quarter growth reached just 0.1 percent, lower than previously estimated, while a recent survey pointed to the economy contracting at its fastest rate in three years as a manufacturing slowdown spread to services. The weak data has fuelled calls for the ECB to pause the aggressive hiking cycle for fear it could deepen a downturn, and President Christine Lagarde finally opened the door to doing so at the bank's last meeting in July. Eye-watering inflation But consumer prices, which began surging after Russia's invasion of Ukraine due to galloping energy costs, continue to rise strongly. This would support arguments for another hike to borrowing costs, with the aim of further depressing demand and slowing inflation. Consumer price rises came in unchanged at 5.3 percent in August, way above the ECB's two percent target, although closely-watched core inflation -- excluding volatile energy and food prices -- eased a little. While inflation has slowed since last year as energy costs fall, officials are now worried that other factors, particularly wage increases in a tight labor market, are keeping it elevated. The data makes for a "very complicated mixed bag," said ING economist Carsten Brzeski. "We expect a very heated debate with a close outcome." Brzeski said he expected the 26-member governing council to opt for one final increase, which would take the closely-watched deposit rate to a record high. Other analysts, however, are betting on a pause on Thursday, although they also think the ECB might then impose one final hike at a later meeting. This would be similar to what the US Federal Reserve has done -- taking a break in June before resuming lifting rates again in July. The Fed and the Bank of England are due to hold their next meetings the week after the ECB. Hawks versus doves ECB officials have insisted their decision will depend on incoming data, which has put the focus on updated forecasts the central bank is also due to release on Thursday. In the run-up to the meeting, they have mostly been cagey about what will happen, a contrast to other recent meetings where the decision was usually well-telegraphed in advance. And mixed signals have emerged in recent days. Governing council member Peter Kazimir called for another 25-basis-point hike, with the Slovak central bank chief writing in an op-ed it is "better to be safe than sorry". But another member, Italian central bank boss Ignazio Visco, disagreed with those who think it is better to overdo it, rather than undershoot, while ECB chief economist Philip Lane welcomed signs inflation was easing in some areas. Analysts stressed it was far from clear whether the "hawks", backers of further tightening, or "doves" -- proponents of a pause -- would prevail on Thursday. But if they do choose to lift rates, it will likely be "the final hike in this cycle, with the ECB on hold until at least mid-2024," said Frederik Ducrozet, chief economist at Pictet Wealth Management. The post Pause or hike? ECB rate decision on a knife edge appeared first on Daily Tribune......»»
3 Popes: JP2, Benedict, Francis
Author’s Note. My perspective in this article is as a Catholic. Readers are warned that the Catholic Church is as human as it is divine. The human frailty and errors among Popes and Cardinals should not scandalize the faithful into leaving the Church, join the growing non-Catholic sects, led by the Born Again movement, and deepen the crisis. Rather, we should pray for the human Church to have the grace to reform itself. Note also that the term “Conservative” and “Liberal” are used as generic terms and do not necessarily apply to certain individuals. There is a vast rainbow of theological positions among Popes and Cardinals. St. Pope John Paul II or “JP2” (1978-2005) was a staunch Liberal. When Vatican journalists exposed the “Vatican mafia,” dominated by Conservatives, who embezzled Vatican Bank funds on a massive scale, JP2 shrewdly chose Conservative Cardinal Ratzinger (future Pope Benedict XVI) to contain his fellow Conservatives. Ratzinger partly succeeded, for which he was labeled the “German Shepherd,” but the Conservatives had been too big and powerful in the last few centuries to be easily extinguished totally. When JP2’s Parkinson’s disease worsened, Ratzinger advised him to resign. Instead, JP2 formed a commission to handle the Vatican mafia problem. The commission also gave him the same advice — resign. So it was a dead-end in the effort to weed out the mafia. When Ratzinger became Pope Benedict XVI (2005-2013), he still could not control his fellow Conservatives, especially the powerful Roman Curia, the central government of the Catholic Church. The corrupt Cardinals were the modern-day Pharisees who were causing a Church crisis, which was prophesied by Our Lady of Fatima. Benedict was forced to resign because he was helpless in handling the Vatican Bank scandals and the growing pedophile epidemic, two raging Church issues. In the latter, there were growing cases of pedophile prelates, from priests to cardinals, who were simply transferred to other dioceses to cover up their crimes, where they continued their evil ways. Thus, the pedophile epidemic spread even more. The cases were swept under the rug, until a massive avalanche of court cases, especially in Europe and America, was bleeding the Vatican coffers dry. Pope Benedict, before resigning, wanted the next Pope to solve the problems that he failed to solve. He chose Cardinal Bergoglio (future Pope Francis). But Bergoglio was a staunch Liberal and Benedict a staunch Conservative. Their theological perspectives were like oil and water. In spite of this, in despair, Benedict campaigned for Bergoglio, who became Pope Francis (2013-present). Benedict knew Bergoglio would easily win because he was a close runner-up in the last Papal conclave (election) where he was elected Pope. In spite of their differences, Benedict and the future Francis became intimate friends as they forged a strategy to contain the growing Church crisis. The movie “Two Popes” accurately featured the drama of their violent debates and gentle friendship. When the Liberal Bergoglio became Pope Francis, he was the first Jesuit Pope of history. The Jesuits have been the epitome of radical reforms ever since the days of the Counter Reformation (1517), a response to Luther’s Reformation, the largest splinter of the Church ever. The Jesuits led the era of counter-reforms to restore the Church. Upon ascending to St. Peter’s chair, the Liberal Pope Francis quickly suppressed the Conservatives in a deadly Blitzkrieg, especially in the Roman Curia, within six short months, shocking the Vatican media. Francis did it quickly but not totally, and he paid a dear price for it. The Conservatives exacted deep vengeance that led to the accusations of Papal “heresy” and “blasphemy’.” An eye for an eye. This was the “apostasy” (civil war) that Our Lady of Fatima also prophesied. That Satan works within the Vatican to cause havoc is a theological fact and a matter of history. Some Church historians point out that the Inquisition was the prime example of the work of the devil, where thousands were randomly beheaded without trial. Do not fret about the Church crisis. God is on top of that situation. We need only to pray for everyone, on both sides of the civil war, and God will take care of everything in His time in His way. Avoid joining the theological debates which tend to confuse. It is better to remain neutral in such complex theological issues. Let the Conservatives and Liberals fight it out. Faith has two aspects — the intellectual and the spiritual, the mind and the heart. On the mind level, it is easy to be confused (dogma, canon law, etc.). You have to prove or disprove. But on the heart level, everything becomes crystal clear, because it is simply a matter of faith. “Praise to you, Oh Father, for what you have hidden from the wise, you have revealed to little children” Luke 10:21. The post 3 Popes: JP2, Benedict, Francis appeared first on Daily Tribune......»»
Of China’s ‘One Belt One Road’
Sometime in August 2016, I attended the formal media launch of One Belt One Road, or OBOR, in Beijing, China. I thought then that OBOR, also referred to later as Belt and Road Initiative, must be one of the most, if not the most, significant programs of President Xi Jinping, as it was attended by hundreds of print and broadcast journalists from around the world, the Philippines included. OBOR was to revive the “Silk Road” economic belt of ancient China, a land trade route carrying its finest silk and other goods to its neighboring Central Asian countries and later to as far as Europe; whereas today’s Road refers to the 21st Century land and maritime silk route to Southeast Asia, the Middle East and Africa. The land route was launched, I think in 2013, while the maritime route was given a big push in 2017. Early on, China set up the Asian Infrastructure Investment Bank as part of the OBOR mechanism. China sank in the initial capital and was joined later by other member countries. The Philippines was the last country to join AIIB when the late President Noynoy Aquino signed its Charter in the last few minutes of 31 December 2015, and this was ratified a year later during Duterte’s term. In sum, AIIB had 106 members to start. The Philippines, if we look at the records, derived from loans and infrastructure projects, was quite slow in availing of cheap money from this BRI initiative. Indonesia, Singapore, and other ASEAN and African countries had done so for various infra projects, among these railways, dams, and ports. The small loan amount we obtained was later topped up by China in terms of gifts which came in the form of bridges, schools, medical supplies, and vaccines when the Covid-19 pandemic broke out. Add to that are the much-needed arms for our armed forces to get rid of the marauding Maute ISIS terrorist group in Marawi City and additional help to rehabilitate it later. Alarmed by the inroads China was making with the BRI through the land and marine infrastructure built with the billions of dollars it loaned to countries along the silk routes, the West was quick to make a big issue of it when Sri Lanka defaulted, calling China’s loans a “debt trap.” Of course, not a few of those struggling economies defaulted as the impact of the new infrastructure on their development had yet to gain traction. However, President Xi Jinping waived the interest dues. How is it for China midway to the Road’s target completion date of 2049? The BRI has covered more than 68 countries with an estimated 65 percent of the world’s population. All told, the largesse from China resulted in the reduction of dependency on the US and it created new markets for Chinese products. The US of A is fast losing its dominance. China, once wallowing in the quagmire of poverty, is now the second-largest economy in the world and growing. Will China then go beyond firing water cannons at Philippine Coast Guard vessels? This could only be answered by another set of questions. Is China willing to cut the marine silk route that passes through or close to the West Philippine Sea? Will its land route suffice to bring its products to its export markets in the event the sea lane is altogether cut off? Will the Chinese people relish going back to poverty and isolation? The answers are a big NO. So why EDCA? Why not pursue the Philippines-China joint oil exploration in the WPS as the offer stands at a 60/40 sharing agreement in favor of the Philippines? Why build more military bases when these are veritable beckons to war which we as a policy abhor? Why not take advantage of the short maritime link between China and the Philippines to enhance our economy? The price of fuel is skyrocketing. Our peso is depreciating as in a free fall. We have solutions and yet these, too have become problems. The post Of China’s ‘One Belt One Road’ appeared first on Daily Tribune......»»
US economy adds 209,000 new jobs as hiring slows
Hiring in the United States slowed in June, the Labor Department said Friday, providing a much-needed signal that the American economy is cooling ahead of another interest rate decision later this month. The figures came in below analysts' expectations, providing some respite for the US Federal Reserve as it mulls a return to interest rate hikes later this month to tackle inflation still well above its long-term target of two percent. The world's biggest economy added 209,000 jobs last month, down from a revised figure of 306,000 in May, the Labor Department said. Meanwhile, the unemployment rate edged down to 3.6 percent, remaining close to historic lows, underscoring the enduring strength of the labor market. The hiring figure came in below the median expectation of 240,000 new jobs in a survey of economists conducted by MarketWatch, while the unemployment rate was in line with predictions. All three major US stock indexes on Wall Street finished the day in the red amid growing expectations of additional interest rate hikes this year "It's a step in the right direction, but we're not near the level that we would need to see to be convinced that the labor market is significantly cooling down," Oxford Economics' lead US economist Oren Klachkin told AFP. Even with job growth easing, average hourly earnings ticked up by 0.4 percent month-over-month, rising by 4.4 percent on an annual basis. "The labor market is still very strong, wages are still rising at a very strong pace, unemployment is still very low, and nonfarm payrolls rose at a pace that is way above what the Fed wants," Klachkin said. Bidenomics in action US President Joe Biden hailed Friday's jobs report as evidence of "Bidenomics in action." "Our economy added more than 200,000 jobs last month -- for a total of 13.2 million jobs since I took office," he said in a White House statement. "That's more jobs added in two and a half years than any president has ever created in a four-year term," he added. June's new jobs came mainly from increases in employment in government, health care, social assistance, and construction, the Labor Department said. "The economy has proven remarkably resilient, with smaller businesses absorbing layoffs at larger firms," KPMG chief economist Diane Swonk wrote in a note to clients. July hike pretty certain Minutes published earlier this week of the Fed's last meeting showed that several members of its rate-setting committee supported another hike in June to tackle high inflation. Ultimately, the Federal Open Market Committee voted to pause the Fed's campaign of 10 consecutive rate increases, indicating that two additional increases would likely be needed before the end of the year to bring inflation back down. Speaking shortly after the jobs report was released on Friday morning, Chicago Fed president Austan Goolsbee suggested the US central bank had more work to do to tame inflation. "Overall the job market is outstanding, and is getting back to a well-balanced, sustainable level," he told CNBC. "The consensus of almost all the FOMC in the statement of projections is that, over this year, we will have one or two more hikes. I haven't seen anything that says that's wrong," he said. Friday's labor data underscores the likelihood the Fed will return to its campaign of interest rate hikes later this month, according to Oxford Economics' Klachkin. "Given where the data stand right now I think that a hike this month is pretty certain, and I would say that there are even risks of more hikes in the second half," he said. "The Fed is expected to raise rates at least another half percent before it pauses," KPMG's Swonk said, adding that a hike in July was "all but a done deal" at this point. Futures traders now assign a probability of more than 90 percent that the Fed will raise its base rate by a quarter percentage point at its next meeting on July 25-26, according to data from CME Group. The post US economy adds 209,000 new jobs as hiring slows appeared first on Daily Tribune......»»
Interest rates likely to stay on hold until early 2024 — BSP
Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla said on Friday that interest rates are likely to stay on hold until January or February next year as monetary policymakers had done enough to tame inflation. In a television interview, Medalla stated that the central bank's upcoming policy decisions will primarily be influenced by inflation data. The central chief, whose term ends on 3 July, said inflation might return to the central bank's target range of 2 percent to 4 percemt by the fourth quarter. "There is little reason to raise, there is little reason to cut," Medalla said. Medalla added that the BSP is closely watching the inflation situation in the Philippines, as well as the actions of other central banks around the world. "If the only basis for the rates is Philippine inflation, we're quite confident that we have already done enough," Medalla said. "The current inflation rate is 6.1% headline, but headline really is two stories. It's the inflation of first seven months, and inflation of the last four or five months. And inflation for the last five months, which is December to the most recent data is actually already back to normal," he added. Medalla said that the BSP expects inflation to be below 4% by October or November, and to be very close to the midpoint of its target of 3% next year. However, Medalla said that the BSP is also watching the actions of other central banks, which have been raising interest rates in an effort to combat inflation. "If they're doing that this year, the interest rate differential just gets to big," Medalla said. "But if all they're doing are 25 (basis points), then we can be just be very focused on Philippine inflation," he added. Medalla said that the BSP is likely to remain on hold until it sees more evidence that inflation is coming down. "I suppose if we see inflation being below three, let's say as far as January or February, that will be a good time to say 'Well wait, maybe we have room to cut,'" Medalla said. Medalla said that the BSP is also concerned about the impact of higher interest rates on economic growth. "We have to be careful not to raise rates too much," Medalla said. "We don't want to choke off economic growth." The post Interest rates likely to stay on hold until early 2024 — BSP appeared first on Daily Tribune......»»
Market watches BSP action after Fed pause
Stock investors will be keeping a close watch on the meeting of the Bangko Sentral ng Pilipinas later this week as it may telegraph the central bank’s next move after the Federal Reserve – the US central bank – paused on its rate hike cycle......»»
Asian markets struggle to match Wall Street as inflation data looms
Markets were mixed in Asia on Tuesday, with investors awaiting the release of key US inflation data later in the day that could play a big role in the Federal Reserve's keenly anticipated interest rate decision. Expectations are for the US central bank to hold fire at the end of its meeting Wednesday -- after 10 straight hikes -- as data suggested the economy remained healthy but was showing signs that the tightening measures are kicking in. Analysts said bets are on a pause for another increase next month, though they warned that a forecast-busting reading on the consumer price index could force officials to keep lifting. Optimism that borrowing costs will be held -- traders have priced in a 20 percent chance of a hike -- has helped push stocks higher this month, with the S&P 500 now in a bull market, having risen 20 percent from its October lows. "The committee is expected to skip the June meeting but still pair that with hawkish communications to counter any sense that a June pause trumpets the end of their hiking campaign," said SPI Asset Management's Stephen Innes. "However, a big upside surprise in today's CPI could move the rate hike needle for June up to and above 50-50." After a strong performance on Wall Street, Asia struggled to pick up the baton. Tokyo, Seoul, Wellington and Taipei rose but Hong Kong, Shanghai, Sydney, Singapore, Manila and Jakarta were in negative territory. The Fed decision comes as central banks around the world continue to struggle in their battle against inflation, which remains well above their two percent targets. The European Central Bank is expected to unveil another increase Thursday despite the eurozone dipping into recession, while the Bank of Japan is tipped to stand pat when it meets Friday. Canada and Australia announced increases last week. But China on Tuesday announced a small cut in its short-term lending rates as authorities try to kickstart a recovery in the economy, which has run out of steam after an initial burst seen after the lifting of zero-Covid restrictions. The move comes after figures showed inflation remained subdued and saw the yuan drop against the dollar. China's ongoing problems remained a weight on the crude market as investors fret over the impact on demand, even after Saudi Arabia's surprise decision to slash output by a million barrels a day next month. WTI is down about 15 percent this year Brent has lost around 13 percent. Both contracts edged up Tuesday but made little headway into the four percent losses suffered the day before as Goldman Sachs slashed its price forecast for the third time in six months. - Key figures around 0230 GMT - Tokyo - Nikkei 225: UP 1.6 percent at 32,946.49 (break) Hong Kong - Hang Seng Index: DOWN 0.6 percent at 19,296.53 Shanghai - Composite: DOWN 0.4 percent at 3,217.54 Euro/dollar: UP at $1.0772 from $1.0762 on Monday Pound/dollar: UP at $1.2522 from $1.2510 Dollar/yen: DOWN at 139.49 yen from 139.56 yen Euro/pound: UP at 86.04 percent from 86.00 pence West Texas Intermediate: UP 0.2 percent at $67.26 per barrel Brent North Sea crude: UP 0.4 percent at $72.11 per barrel New York - Dow: UP 0.6 percent at 34,066.33 (close) London - FTSE 100: UP 0.1 percent at 7,570.69 (close) dan/dva © Agence France-Presse The post Asian markets struggle to match Wall Street as inflation data looms appeared first on Daily Tribune......»»
Aboitiz joins global beat plastic efforts
On 5 June, the United Nations’ or UN World Environment Day, the Aboitiz Group demonstrates its commitment to global sustainability efforts by highlighting its groundbreaking innovations in the fight against plastic pollution. With this year’s theme of #BeatPlasticPollution, the Aboitiz Group supports effective action and a transition towards a circular economy to address global environmental challenges. The Group hews close to the UN Environment Program or UNEP’s vision of a shift to a circular economy, in which the inflow of plastics into the ocean can decrease by more than 80 percent by 2040, greenhouse gas emissions are reduced by 25 percent, and in the process even generate 700,000 job opportunities. The Group aims to accelerate progress and inspire others to take bold steps in combating plastic pollution. At the heart of the Aboitiz Group’s operations lies the OneNewAboitiz Sustainability Synergy, guiding the Group toward innovative practices and technologies. The Aboitiz Group’s sustainability achievements work towards a worldwide sustainable development agenda, aligning with the UN Sustainable Development Goals or SDGs. By pushing the boundaries of innovation, the Aboitiz Group tackles pollution challenges with effective solutions. Through these dedicated initiatives and actions, the Aboitiz Group demonstrates its unwavering commitment to sustainable development and actively contributes to the attainment of several SDGs. These include SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 14 (Life Below Water), and SDG 15 (Life on Land). The Group’s efforts specifically focus on promoting responsible consumption and production, taking action against climate change, safeguarding marine ecosystems, and preserving terrestrial biodiversity. Reimagine seaweed As the Group undergoes its Great Transformation to become the Philippines’ first Techglomerate, it is taking an innovative approach to #BeatPlasticPollution, reimagining the world in terms of possibilities and opportunities. With growing interest in using seaweed as an alternative to single-use plastic, leaders within the Aboitiz Group are working on the Reimagine Seaweed initiative, set to transform the seaweed industry of the Philippines. The initiative is holistically designed to create a sustainable and profitable seaweed industry that provides livelihoods to farmers, promotes biodiversity, reduces plastic pollution, and mitigates the effects of climate change. According to the Food and Agricultural Organization, the Philippines is the fourth-largest producer of seaweed globally, supporting 1.4 million seaweed farmers. Under Reimagine Seaweed’s three-pronged strategy, seaweed farmers are taught better farming techniques and are introduced to green technology that will expand their product range to potentially include bioplastics, protein powder, cosmetics, and health supplements. Within the next five years, the Aboitiz Group and the Reimagine Seaweed team are looking to reduce single-use plastics in the region through the production of biodegradable and compostable packaging made from seaweed. This game-changing initiative is making progress towards improving the lives of seaweed farmers, bringing world-class green technology to the local industry, and eliminating single-use plastics in Asia and beyond. By leveraging a renewed entrepreneurial mindset and the latest technologies, the Aboitiz Group tackles global challenges with innovative approaches that advance the business and communities they serve. On the road to ending plastic toxicity, they are also opening up an ocean of opportunity with Reimagine Seaweed. Plastic Neutrality Republic Cement, a CRH-Aboitiz company, pioneered the use of alternative fuels through co-processing in the Philippines. The process involves the reuse and recovery of thermal and mineral properties of qualified waste materials as alternative fuels, allowing Republic Cement to reduce dependence on fossil fuels and minimize environmental impact. The firm uses residual plastic waste, including rejected plastic bottles, styrofoam, tarps, single-use plastic containers and utensils, sachets, shopping packages, and other soft plastics, as alternative fuels. In August 2022, Republic Cement achieved a significant milestone in becoming plastic-neutral. Through its resource recovery group, ecoloop, the company collected and co-processed an equivalent volume of residual plastic waste used in the packaging and transporting of its cement products. By integrating plastic waste into the cement manufacturing process, Republic Cement successfully offset its plastic packaging footprint for 2020 to 2022, equivalent to co-processing over 890 dump trucks filled with plastic waste. Republic Cement also supports numerous manufacturers to reach their plastic neutrality goals and be more responsible corporate citizens and stewards of the environment. Upcycled plastic City Savings Bank, the thrift bank subsidiary of the Aboitiz-led Union Bank of the Philippines or UnionBank, partnered with Envirotech Waste Recycling, Inc. or Envirotech to upcycle plastic waste into classroom essentials: school chairs. In support of the Department of Education Matatag agenda to supplement basic education facilities and services, CitySavings donated 50 plastic chairs made of upcycled waste plastic to Kapitan Tomas Monteverde Sr. Central Elementary School in Davao City and Tunasan National High School in Muntinlupa City. Likewise, the construction arm of the Group, Aboitiz Construction, has been implementing its policy against single-use plastics across all projects and facilities since last year. The implementation resulted in a 14.60% reduction of plastic wastes from 2022 to 2023. Also, this initiative is anchored in the firm’s compliance to ISO 14001: 2015 (Environmental Management System) and to its future plan of standardizing materials recovery facilities on all sites. The post Aboitiz joins global beat plastic efforts appeared first on Daily Tribune......»»
BSP: Corporate, household debt levels need closer monitoring
A Bangko Sentral ng Pilipinas official on Tuesday underscored the importance of remaining vigilant and proactive in monitoring corporate and household debt in light of the increasing usage of credit cards, as it poses risks to banks and the broader financial system. The comments came in response to concerns raised by analysts, including the International Monetary Fund, regarding the increasing use of credit cards among households. The Credit Card Association of the Philippines said on Monday that post-lockdown revenge spending among Filipinos continued to fuel the domestic economy, as seen in the surge in credit card use in the first quarter of 2023. Data from the CCAP showed a 47-percent gross billings surge that totaled P410 billion during the first three months of the year, the highest since the Covid-19 pandemic started in 2020. In the same period in 2022, billings reached P279 billion. Speaking to reporters on Tuesday on the sidelines of the 2023 BSP-IMF Conference on Financial Stability, BSP Senior Assistant Governor Johnny Noe Ravalo clarified that the market is "at risk" due to the corporate and household debt and emphasized the importance of monitoring and assessing potential jeopardy. Regarding household debt, Ravalo explained that current data available to the BSP is limited to surveys conducted by the government and that household debt requires "a granular and regular survey by the national government." He noted that "it is part of the surveillance process that you try to look at every possible detail," and that his role as a senior assistant governor is to "connect dots that don't necessarily look obvious." Systemic risk is about interconnectedness" and that "possible ang risk will come from a very small trigger," he added. Ravalo emphasized the importance of assessing and managing risks, saying that "the judgment call about whether we should take action, whether intervention is necessary and who should intervene" is crucial in preventing potential risks from materializing. On Monday, BSP Governor Felipe Medalla said the central bank could press the corporate sector to provide more data about their finances. "Under the law, we can actually ask them how much they have borrowed from abroad and in what currency and what are the maturities," Medalla said. For its part, the IMF said the Philippine corporate sector warranted "close monitoring" amid tighter financial conditions and despite a healthy banking sector and reduced risks from the global banking turmoil. It said regulators needed to "strengthen the resolution framework for financial institutions and the insolvency regime for corporates." The post BSP: Corporate, household debt levels need closer monitoring appeared first on Daily Tribune......»»
ANZ raises Philippine inflation forecast to 3.8% this year
ANZ Research hiked its inflation forecast for the Philippines to 3.8 percent this year, from 3.5 percent previously, as risks may drive inflation up to above the central bank’s two to four percent target in the coming months......»»
Xinhua world news summary at 0630 GMT, March 18
MOSCOW -- Russia's incumbent President and presidential candidate Vladimir Putin, who is set to win reelection, said he would do his utmost to achieve national development goals on Monday morning. Putin has won 87.32 percent of the vote after 95.04 percent of all ballots were counted, according to data from the Russian Central Election Commission as of Monday morning. (Russia-Presidential Election) - - -.....»»
Philippines posts 196 mln USD deficit in February
MANILA, March 19 (Xinhua) -- The Philippines' overall balance of payments (BOP) posted a 196-million-U.S. dollar deficit in February, significantly lower from the 895-million-dollar BOP deficit recorded a year ago, the country's central bank said on Tuesday. The Bangko Sentral ng Pilipinas (BSP) said the BOP deficit in February reflected outflows arising mainly from the national government's foreign currency deb.....»»
BPI readies issuance of dollar bonds
The Bank of the Philippine Islands is close to issuing its dollar-denominated bond sale, as it has started a series of fixed income investor meetings......»»
Foreign debt reaches all-time high in 2023
The country’s foreign debt reached another record high in 2023, as both the national government and the private sector borrowed more from offshore creditors, the central bank said......»»
BSP to banks, financial institutions: Prioritize national ID as top identification
The central bank said that institutions should “adopt enhanced measures to ensure the broad acceptance of the PhilID” whether its physical or electronic version as a valid proof of identity and age for all financial transactions. .....»»
Philippines FDI net inflows decline 6.6 pct in 2023
MANILA, March 11 (Xinhua) -- Foreign direct investment (FDI) that flowed into the Philippines declined year-on-year by 6.6 percent in 2023, the country's central bank said Monday. The Bangko Sentral ng Pilipinas (BSP) said the FDI net inflows reached 826 million U.S. dollars last December, bringing the yearly total amount to 8.9 billion dollars in 2023, compared to 9.5 billion dollars in net inflows recorded in.....»»