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Russia skirts sanctions with digital ruble
Russia started testing its digital ruble Tuesday in a bid to limit the impact of international sanctions following its military offensive in Ukraine last year. Russia’s central bank told Agence France-Presse that 13 local banks and 600 individuals took part in the trial, making payments in digital ruble via a mobile app at 30 sales points in 11 Russian cities. The payments were without charge and with a minimal commission for businesses. The dollar-less payment system allows many Russian banks to continue transactions in lieu of the SWIFT system that banned them since last year. Most Russian banks have been banned from the main system used for international transactions, pushing Moscow to look for other ways to de-dollarize. Like cryptocurrencies, the digital ruble uses blockchain technology, which facilitates direct transactions through a decentralized database. The main difference lies in its status as a “central bank digital currency,” which is tightly controlled. The digital rubles are issued by the Russian central bank and stocked in electronic wallets, with the FSB national security service monitoring the system. According to researchers at the Atlantic Council, Russia has become the 21st country to enter the test phase for a digital currency. Social control Mikkel Morch, founder of crypto-focused investment fund ARK36, said the digital ruble will allow Russia to avoid banks where it faces restrictions, and that the blockchain is “much less easy to sanction and attack.” However, Morch said that digitizing the ruble would give authorities “immense control” over Russians. It could be used as “the ultimate social control tool,” he warned, giving the government the power to issue fines or freeze assets with “the click of a button.” “In the wrong hands, this data could be used to spy on citizens’ private transactions,” researchers from the Atlantic Council have warned. To convince wary Russians, authorities have promised its use will be voluntary. WITH AFP The post Russia skirts sanctions with digital ruble 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......»»
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. .....»»
BSP onboards 1st nonbank electronic money issuer
The Bangko Sentral ng Pilipinas (BSP) achieved a significant milestone by welcoming OmniPay, Inc. as the first nonbank electronic money issuer (EMI) participant in its Real Time Gross Settlement (RTGS) payment system, PhilPaSSplus. This move aligns with the National Payment Systems Act and signifies a more inclusive national payment system, allowing nonbank financial institutions to conduct efficient and low-risk funds transfers directly through the central bank. Assistant Governor Mary Anne P. Lim emphasized the BSP's commitment to safeguarding the entire Peso RTGS payment system amidst global trends of diversified participation. With 236 institutions, including various banks and nonbank entities, utilizing PhilPaSSplus for large value transactions and retail payment clearing, the BSP's initiative reflects a broader trend of central banks facilitating direct access for nonbank entities to settlement services. This development comes as international standard-setting bodies work on access guidelines to manage risks in evolving payment systems with new players and financial technologies......»»
German tourist stabbed to death in Paris terror attack
A person known to the French authorities as a radical Islamist with mental health troubles stabbed a German tourist to death and wounded two people in central Paris on Saturday before being arrested, officials said.The attack took place close to the Eiffel Tower during a busy weekend night and came with the country on its highest alert for attacks as tensions rise against the background of the war between Israel.....»»
German tourist stabbed to death in Paris terror attack
A person known to the French authorities as a radical Islamist with mental health troubles stabbed a German tourist to death and wounded two people in central Paris on Saturday before being arrested, officials said.The attack took place close to the Eiffel Tower during a busy weekend night and came with the country on its highest alert for attacks as tensions rise against the background of the war between Israel.....»»
Xinhua world economic news summary at 0930 GMT, Oct. 25
FRANKFURT -- Most banks in eurozone continued to tighten their credit standards in the third quarter of this year, according to the results of a survey conducted by the European Central Bank (ECB) and published on Tuesday. Fifty-six percent of the 157 banks involved in the ECB lending survey conducted between Sept. 15 and Oct. 2 reported they had tightened their credit standards. (Eurozone-Banks-Credit Standards.....»»
Crypto crackdown intensifies on Hamas finance
Cryptocurrency has become the latest front in the conflict between Israel and Hamas, analysts say. Israeli and US authorities have intensified their financial hunt into Hamas in recent days as they track illicit funds via digital currencies. Ari Redbord, global policy head at crypto tracking specialist TRM Labs, said there is now less crypto transfer activity on pro-Hamas support networks as a result. "We are seeing a lot less activity in some respects since the war began," Redbord told AFP. This is "primarily because Israel has been very aggressive and successful in taking down these fundraising efforts", he added. Israel has bombed Gaza in response to an unprecedented cross-border attack by Hamas militants who, while firing a massive rocket barrage, killed more than 1,400 people and took 222 hostages on 7 October, according to Israeli authorities. Israeli strikes have now killed more than 6,500 people in Gaza, according to the Hamas-run health ministry. Shadowy world Cryptocurrency is regarded as a speedy way to move cash that is unregulated by any central bank and is less traceable than a traditional bank transfer. The shadowy world of digital units, based on decentralized blockchain technology, has gained notoriety for illicit transactions due to its under-the-radar appeal. Two weeks ago, Israeli police revealed they had located and frozen accounts linked to Hamas that sought "to solicit donations on social networks" via Binance, the world's biggest cryptocurrency exchange. A Binance spokeswoman said it "follows internationally recognized sanctions rules, blocking the small number of accounts linked to illicit funds". Redbord, formerly a senior US government adviser, said Hamas had adopted crypto from 2019 at the latest, to seek funding via the Telegram messaging network and even on its own website. Hamas decided in April that it would no longer accept cash via Bitcoin due to increased global surveillance of the world's biggest digital unit. Crypto fundraising is now operated via a network of Hamas-linked support groups. TRM Labs has closely monitored virtual crypto wallets linked to such support groups since the start of the war. And it has concluded that much smaller amounts of cash than usual are being moved. Two weeks after the attacks, support group Gaza Now received less than $6,000 in one of its crypto wallets, Redbord noted. That compared with $800,000 in total since the wallet's creation in August 2021. Meanwhile, authorities are well aware that digital assets are a minor part of a complex funding picture. The US State Department estimates that Iran funnels $100 million per year to Palestinian groups including Hamas. 'Small piece of puzzle' "Cryptocurrency is a very small piece of a larger financing puzzle for Hamas," said Redbord. "They are looking to Iran; they're... imposing taxes on the Palestinians; they have a network of charities and a diaspora of supporters who are sending donations not in cryptocurrencies." "But crypto does play a role," he said. Digital currencies still represent a significant revenue stream for Hamas and other allied groups. Crypto addresses identified by Israel as being linked to Hamas received about $41 million between August 2020 and July 2023, according to Israeli analytics and software firm BitOK. Other crypto addresses linked to Islamic Jihad received in excess of $154 million between October 2022 and September 2023, with some still active, it adds. Some players in the sector simply turn a blind eye. "Some cryptoasset businesses are intentionally or unwittingly allowing misuse of the crypto ecosystem," said Joby Carpenter, an expert on the industry. "This trend is magnified where exchanges are based in lightly or unregulated jurisdictions," he told AFP. The post Crypto crackdown intensifies on Hamas finance appeared first on Daily Tribune......»»
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......»»
Geopolitical tensions could hit global economy: US Fed
The US Federal Reserve warned Friday that the recent attack on Israel and the ongoing Ukraine conflict could cause harm to the world economy and boost global inflation. Israel has been conducting extensive air strikes on the Gaza Strip since October 7, when more than 1,400 people, mostly civilians, were killed by Hamas militants during an armed attack on the south of the country. Israel's retaliatory bombing campaign has left more than 4,100 people dead, many of them also civilians, according to the Hamas-run health authorities in Gaza. Ongoing exchanges of fire with Hezbollah militants along Israel's northern border with Lebanon have raised fears that the conflict could spread to other countries in the region. "The attack on Israel, in conjunction with Russia's ongoing war against Ukraine, has ratcheted up geopolitical tensions," the Fed said in its semi-annual report on financial stability. "Escalation of these conflicts or a worsening in other geopolitical tensions could reduce economic activity and boost inflation worldwide," it added. Mitigating banking stress In its report, the Fed also said that policy interventions earlier this year in light of the rapid collapse of Silicon Valley Bank (SVB) had "played a key role in mitigating the stresses in the banking system that emerged in March." SVB failed following a bank run by investors concerned by its exposure to interest rate risk in light of the Fed's aggressive campaign of rate hikes. A number of other US banks collapsed in the turmoil that followed, which also led to the merger, under pressure, of the Swiss banking giant Credit Suisse with regional rival UBS. "Since March, volatility has abated and deposit outflows have largely stabilized," for affected banks, the Fed said. "But these banks nonetheless continued to face challenges navigating changes in depositor behavior, higher funding costs, and reduced market values for investment securities," it added. The post Geopolitical tensions could hit global economy: US Fed appeared first on Daily Tribune......»»
The importance of cyber security
Cyberattacks are on the rise! In the past, we associated this terrifying incident with online banks and payment platforms. However, even government websites, not known as financial institutions, from which money may be stolen, or unauthorized payments are also targets. Last Sunday, 15 October, the website of the House of Representatives was vandalized before noon by a group calling itself “3MUSKETEERZ.” A face with a mocking meme with the phrases “You’ve been hacked” and “Have a nice day” appeared on the website. Below the face was the message, “Happy April Fullz Kahit October palang (even if it’s still)! Fix your website.” A few minutes later, the website went down and became inaccessible. Shortly after, the House of Representatives issued a statement assuring the public that the House had already taken action and coordinated with the government agencies concerned to deal with the matter. “While we work to restore the website fully, we ask for patience and understanding. We are committed to ensure the security and integrity of our digital platforms, and we will implement additional measures to prevent such incidents in the future,” the statement said. Relatedly, also recall that on 22 September, a system of the Philippine Health Insurance Corporation was similarly attacked, preventing access for a week. Reports stated the data breach affected employees’ workstations, application servers, and users’ data, including names, addresses, dates of birth, gender, phone numbers and PhilHealth identification numbers. On 31 August, the Department of Science and Technology’s OneExpert portal was also subjected to a cyberattack. In a statement on 13 October, the DoST assured the general public that the virtual assault compromised no personal data. In all the above instances, whether personal data or sensitive information were stolen, it causes alarm to us Filipinos. The call to government agencies and ordinary Filipinos to be vigilant and careful with our online information and accounts has become louder than ever. The same holds true for institutions and businesses, which, by the nature of their activities, are entrusted with and tasked to safeguard large amounts of personal information and are responsible for keeping this trust by whatever means appropriate. I now want to stress the importance of cyber security not just for individuals and juridical entities but for the entire nation holistically. Protection against cyber threats: In today’s digital age, cyber threats like hacking, data breaches, and identity theft are becoming more prevalent. Implementing robust cyber security measures helps protect us from these threats. Safeguarding sensitive information: Cyber security also helps protect sensitive information such as personal data, financial details and intellectual property. This is crucial for maintaining privacy and preventing unauthorized access or misuse of information. Maintaining trust, reputation, and credibility: Cyber security is essential for building trust with customers, clients, and partners. Organizations can maintain a positive reputation and avoid potential legal and financial consequences by committing to protecting their data and privacy. Compliance with regulations: Many industries have specific regulations and standards regarding data protection and privacy. Compliance with these regulations is not only important for avoiding penalties but also for ensuring ethical practices and responsible handling of data. Business continuity: Cyber attacks can disrupt operations, leading to financial losses, reputational damage, and even business closure. Implementing effective cyber security measures helps minimize these risks and ensures business continuity. Finally, I want to end by being deliberately redundant in stating that cyber security is crucial for protecting individuals, organizations, and society from the growing threat landscape in the digital world. Cyber attackers are on the prowl; we must be alert to the possibility of attack, ready even now to implement measures to effectively counter-act or prevent the same. The post The importance of cyber security appeared first on Daily Tribune......»»
Hundreds dead in Israel-Gaza war as Hezbollah launches attacks
Israeli Prime Minister Benjamin Netanyahu on Sunday warned of a "long and difficult" war, as fighting with Hamas left hundreds dead on both sides after a surprise attack on Israel by the Palestinian militant group. The conflict's bloodiest escalation in decades saw Hamas carry out a massive rocket barrage and ground, air and sea offensive Saturday that Israel's army said had killed more than 200 Israelis and wounded 1,000, while soldiers and civilians were taken hostage. Gaza officials said intense Israeli air strikes on the coastal enclave had brought the Palestinian death toll to at least 256, with nearly 1,788 wounded. As fighting raged Sunday, Lebanon's powerful Iran-backed Hezbollah movement said it had fired "large numbers of artillery shells and guided missiles" at Israeli positions in a contested border areas "in solidarity" with Hamas. Israel's army had earlier said it fired artillery on southern Lebanon in response to a shot from the area without identifying the attackers. "We are embarking on a long and difficult war that was forced on us by a murderous Hamas attack," Netanyahu said on X, formerly Twitter, early Sunday. "The first stage is ending at this time by the destruction of the vast majority of the enemy forces that infiltrated our territory," he added, pledging no "respite" until victory. Overnight Israel battered the Gaza Strip with air strikes as rockets from the blockaded Palestinians territory rained on Israel. Sunday morning gun still battles raged between Israeli forces and hundreds of Hamas fighters in multiple locations, including at the Sderot police station across the border from Gaza. Police and Israeli army special forces "neutralized 10 armed terrorists" who were holed up inside the station, a police statement said. The bloody air, sea and land attack launched Saturday by Hamas came half a century after the outbreak of the 1973 Arab-Israeli war, taking Israel and the world by surprise. As the UN Security Council called an emergency meeting for Sunday, President Joe Biden voiced "rock solid and unwavering" support for the US ally and warned "against any other party hostile to Israel seeking advantage in this situation". - Hostages and 'so many bodies' - The Israeli army said overnight its forces were still engaged in gun battles in a string of Israel locations, in an operation labelled "Swords of Iron", as reservists were being called up. Hamas earlier released images of several Israelis taken captive, and another army spokesman, Daniel Hagari, confirmed that soldiers and civilians had been kidnapped. "I can't give figures about them at the moment," he said late Saturday, adding there was also a "severe hostage situation" in the Negev desert communities of Beeri and Ofakim east of Gaza. According to Ynet Israeli news website "dozens of Israeli captives, including numerous women, children and elders, are believed to have been taken into the Gaza Strip". The fighting prompted Israel to cut off Gaza's electricity, fuel and goods supplies, Netanyahu said. The Islamist group started the multi-pronged attack around 6:30 am (0330 GMT) on Saturday with thousands of rockets aimed as far as Tel Aviv and Jerusalem, some bypassing the Iron Dome defense system and hitting buildings. Hamas fighters -- traveling in ground vehicles, motorized paragliders and boats -- breached Gaza's security barrier and attacked nearby Israeli towns and military posts, opening fire on residents and passersby. "Send help, please!" one Israeli woman sheltering with her two-year-old child pleaded as militants outside opened fire and tried to break into their safe room, Israeli media reported. Bodies were strewn on the streets of the Israeli town of Sderot near Gaza and inside cars, the windscreens shattered by a hail of bullets. "I saw many bodies, of terrorists and civilians," one man told AFP, standing beside covered corpses on a road near Gevim Kibbutz in southern Israel. "So many bodies, so many bodies." AFP journalists witnessed Palestinian armed men gather around a burning Israeli tank, and others driving a seized Israeli military Humvee vehicle back into Gaza, where they were met by cheering crowds. - 'Gates of hell' - Israeli army Major General Ghasan Alyan warned Hamas had "opened the gates of hell". An AFP journalist in Gaza saw clouds of dust from the remains of bombed residential towers which Gaza's interior ministry said contained 100 apartments. Israel's military said it had warned residents to evacuate before targeting the multi-story buildings used by Hamas. The escalation follows months of rising violence, mostly in the occupied West Bank, and tensions around Gaza's border and at contested holy sites in Jerusalem. Before Saturday, at least 247 Palestinians, 32 Israelis and two foreigners had been killed this year, including combatants and civilians, according to Israeli and Palestinian officials. Hamas labeled its attack "Operation Al-Aqsa Flood" and called on "resistance fighters in the West Bank" as well as in "Arab and Islamic nations" to join the battle. Its armed wing, the Ezzedine al-Qassam Brigades, claimed to have fired more than 5,000 rockets, while Hecht said Israel had counted more than 3,000 incoming rockets. Hamas chief Ismail Haniyeh said the group was on the "verge of a great victory", vowing to press ahead with "the battle to liberate our land and our prisoners languishing in occupation prisons must be completed". - 'Dangerous precipice' - Air raid sirens wailed across southern and central Israel, as well as in Jerusalem on Saturday, and there were major disruptions at Tel Aviv airport where many carriers canceled flights. Israel said schools would remain closed on Sunday which marks the start of the week. Hamas took control of Gaza in 2007, leading to Israel's crippling blockade of the impoverished enclave of 2.3 million people. Israel and Hamas have since fought several wars. The last major military exchange, in May, killed 34 Palestinians and one Israeli. Violence also erupted across the West Bank, including annexed east Jerusalem, with five Palestinians killed and 120 wounded in clashes with Israeli forces and settlers, Palestinian medical services said. Countries around the world condemned the wave of attacks by Hamas, which Israel, the United States and European Union consider a terrorist group. European Commission President Ursula von der Leyen called the attack "terrorism in its most despicable form". But Hamas drew support from other foes of Israel, with Iran's supreme leader declaring he was "proud". UN Middle East peace envoy Tor Wennesland warned of "a dangerous precipice" and called on all sides to "pull back from the brink". (Rosie Scammell with Adel Zaanoun in Gaza) az-rsc-jd/hkb © Agence France-Presse The post Hundreds dead in Israel-Gaza war as Hezbollah launches attacks appeared first on Daily Tribune......»»
Regional economies slowing down — WB
The World Bank expects East Asia and Pacific economies, excluding China, to grow by 4.6 percent this year as the Philippines catches up with digitalization. The WB prediction is slower than the previous 4.9 percent estimate announced by the multinational financial institution in April. If China is included, economic growth in the region is projected to settle at five percent, the World Bank’s report from Washington said last Sunday. “This is higher than average growth projected for all other emerging market and developing economies but lower than previously projected,” the World Bank said. “The East Asia and Pacific region remains one of the fastest growing and most dynamic regions in the world, even if growth is moderating,” World Bank East Asia and Pacific vice president Manuela Ferro said. The multinational financial institution said the region might continue to face challenges in supplies of goods as more typhoons hit the region in the fourth quarter this year and climate change persists. Geopolitical tensions The World Bank added geopolitical tensions aside from the Russia-Ukraine war threatens to further hamper trade. China, the world’s second largest economy, and the US have been exchanging export bans, especially on electronic and technology products. Meanwhile, the Philippines and other Southeast Asian states are protesting against China’s aggression in the West Philippine Sea. For these reasons, the World Bank said prices of goods and services might rise, forcing central banks in the region’s developing countries to raise interest rates to prevent inflation from accelerating further. However, this means consumers might cut back spending on certain goods and services, while businesses slow operations. Borrowing costs to remain high “Therefore, borrowing costs will likely remain high, constraining room for spending and raising the risk of debt distress in some countries. Furthermore, high indebtedness, combined with rising costs of servicing debt, will weigh on private investments,” the World Bank said. For its 2024 forecast, the bank is more optimistic that the region’s economy excluding China’s will expand from 4.6 percent to 4.7 percent. “Growth in the rest of the region is expected to edge up, as recovery in global growth and easing of financial conditions offsets the impact of slowing growth in China and trade policy measures in other countries,” the World Bank said. Philippine economic growth is seen to improve to 5.9 percent next year from a 5.6 percent forecast for this year. Meanwhile, China’s economy could shrink by 4.4 percent next year from a 4.8 percent estimate for 2023 due to persisting elevated debt, tamer demand for real estate, and aging population. Sustaining high growth to require reforms “Over the medium term, sustaining high growth will require reforms to maintain industrial competitiveness, diversify trading partners, and unleash the productivity-enhancing and job-creating potential of the services sector,” Ferro said. The World Bank reported digitalization and other reforms in government services in the Philippines increased productivity of firms by 1.5 percent from 2010 to 2019. Digital technologies, for example, can spread education and health services in the provinces to ensure a bigger pool of high-skilled and energetic workers. The post Regional economies slowing down — WB appeared first on Daily Tribune......»»
Additional cuts in bank reserves now off the table
An additional reduction in the amount of cash banks are required to keep with the central bank is now off the table for this year after monetary authorities signaled a possible rate hike in November amid upside risks to inflation, according to Bangko Sentral ng Pilipinas Governor Eli Remolona Jr......»»
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......»»
BSP urges free service fee for small fund transfers
The Bangko Sentral ng Pilipinas plans to issue a payments framework aimed at removing transaction fees for small fund transfers. BSP Governor Eli Remolona Jr. on Thursday said central bank officials have also been talking with e-wallet firms and other digital financial services providers to create the framework which will require financial firms to offer free fund transfers for small amounts. He said only three major banks are offering such service so far amid the lack of formal guidelines and directive from the BSP. Shame major banks “We’re trying to shame other major banks into following the same service. We’re formalizing it through a payments framework, and we’re in touch with GCash, Maya and other digital financial services providers,” Remolona said Thursday during the Global Policy Forum on Financial Inclusion organized by the Alliance for Financial Inclusion at the Philippine International Convention Center in Pasay City. With zero fees for small fund transfers, Remolona said more Filipinos would be encouraged to avail of banking services like deposit accounts, build wealth, and promote equitable financial service. “In general, we want to make sure the poor do not subsidize the rich. If you have a credit card and a big spender, you can get rewards. Guess who pays for the rewards? It’s the poor guys who only use small amounts in their transactions and get charged,” the BSP governor said. As more Filipinos own deposit accounts even with small funds, Remolona added banks and other lenders can strengthen their capital capacities. “We’ve found that when deposits are small, they become sticky and depositors don’t run away at the first sign of trouble. If you can lend to the poor, you have a more diversified portfolio and so it’s safer for banks,” the BSP governor said. Manila Manifesto During the Global Policy Forum on Financial Inclusion attended by over 700 foreign bankers and other stakeholders, Remolona announced the Manila Manifesto. This is a commitment by the Philippines to collaborate with other state-members of the Alliance for Financial Inclusion or AFI on developing global standards for making financial products and services safe, accessible and affordable for all. AFI reported 1.4 billion people worldwide still cannot access financial services due to a range of factors, such as financial illiteracy and lack of Internet connection and digital banking platforms. “In the 15 years since AFI was created, with substantive support from the BSP, our members have brought over 840 million people into the financial system via enlightened national policies and strategies on financial inclusion,” Dr. Alfred Hannig, AFI executive director, said. The post BSP urges free service fee for small fund transfers appeared first on Daily Tribune......»»
Argentina monthly inflation highest in three decades
Argentina recorded an inflation rate of 12.4 percent in August, the highest monthly change in over three decades in a country dogged by chronic economic instability, its statistics agency said Wednesday. Prices also rose 124 percent over the past 12 months, according to a report by the Indec agency published a little over a month before general elections. "There is nothing, no money to save. We live day to day," said teacher Karina Sablich, while doing her grocery shopping. Economy Minister Sergio Massa, who is running for president, said Wednesday that "August has been one of the worst months... of the past 30 years" for Argentina's economy, blaming an "imposition by the International Monetary Fund." The increase in inflation had been expected after the peso was devalued by 21 percent in August, which had been agreed with the IMF in order to unblock part of a $44 billion loan package. The last time monthly inflation hit double digits was in April 2002, when it stood at 10.4 percent. Prior to that, the highest monthly rate was recorded at 27 percent in February 1991. The prices of food and non-alcoholic beverages saw the highest jump in August, at 15.6 percent. "An anti-inflationary plan is needed, but obviously that won't happen until" a new government takes over in December, said economist Victor Beker, from the University of Belgrano. 'The saddest thing' Argentines are no stranger to inflation woes, with several periods of hyperinflation in the late eighties and early nineties, which reached up to 3,000 percent. To exit that crisis, the government pegged the currency to the US dollar, but a worsening economic situation made that untenable by 2001. When the peso was uncoupled from the greenback, its value plummeted, causing a run on banks as people's savings were wiped out, and deadly social unrest. A few days after that devaluation, Argentina defaulted on its foreign debt, further deepening its economic and social crisis. Since then, Argentina has battled with boom and bust cycles, inflation, currency devaluations, and debt restructuring. "We continue despite everything, knowing that for now, things are not going to change," said the teacher Sablich. "That's the saddest thing about being in this country right now, the uncertainty, that we don't know how we're going to get out, who's going to get us out, how we're going to do it." 'A disgrace' Many weary Argentines are backing a radical political outsider in October's presidential race. Buenos Aires lawmaker Javier Milei, who has vowed to dynamite the central bank and dollarize the economy, in August scored the most votes in a joint primary election between all parties, seen as a litmus test for the main vote. His main rivals will be former security minister Patricia Bullrich on the right, and economy minister Massa from the ruling center-left coalition. Bullrich slammed the inflation figures on social media as "a disgrace," saying they "summed up the tragedy" left by Massa and the rest of the government. Massa, scrambling to ease the pressure on citizens' pockets, on Monday announced an increase in the minimum taxable monthly income to 1.7 million pesos ($4,850 official rate, $2300 on the parallel market). This is double the previous amount, and would leave fewer than 800,000 people in the country of 45 million paying income tax, Massa said. The post Argentina monthly inflation highest in three decades appeared first on Daily Tribune......»»
UBS’s Credit Suisse takeover, ‘deal of the century’?
Did banking giant UBS make "the deal of the century" when it bought one of the world's biggest banks for a pittance as it teetered on the edge of the abyss? Switzerland's largest bank was in March strong-armed by Swiss authorities into a $3.25-billion takeover of Credit Suisse, to keep its closest domestic rival from going under. At the time, investors gasped at the risks UBS was taking on with the purchase. But by August, the bank said it would not need the billions in support offered by the Swiss government and central bank to offset any surprises that might pop up in its stricken rival's accounts. That must mean that Credit Suisse's situation was "much better than described in March", Thomas Aeschi, a member of parliament with the populist rightwing Swiss People's Party (SVP), wrote on X, formerly Twitter. UBS seemed to prove him right when it unveiled its second-quarter results on August 31. The bank posted a towering net profit of $29.2 billion for the three-month period, thanks to an exceptional gain due to the gulf between the amount paid for Credit Suisse and its book value. 'Godsend' "UBS has pulled off the deal of the century," Switzerland's Socialist Party said, maintaining the "rescue" was more of a "godsend", allowing it to snatch up a bank at a dramatically reduced rate. "If we had chosen another path, (like) a temporary or partial nationalization," said Samuel Bendahan, a Socialist MP and economics professor at the University of Lausanne, the Swiss state "would have taken on the risk, but those $29 billion would have gone to the population". Instead, the takeover has created "a monopolistic situation", he told AFP, warning that while this might strengthen UBS, it puts Switzerland in an extremely risky position if the new mega-bank were to one day face a crisis. Politicians are not the only ones taking issue with the takeover. Gisele Vlietstra, founder of the Swiss Investor Protection Association, told public broadcaster RTS that UBS's towering quarterly profit confirms that the "intrinsic value" of Credit Suisse was "far higher" than the purchase price. She said she hoped that the lawsuits brought by her association and others on behalf of thousands of Credit Suisse shareholders will help determine "the correct value" that they should be compensated. 'Nickel and dime' "UBS paid a nickel and dime" and "got rid of its main competitor" in one fell swoop, Carlo Lombardini, a lawyer and banking law professor at Lausanne University, told AFP. The coming restructuring will clearly carry risks, "but having paid just three billion, it can't go wrong", he said, slamming the option chosen by the Swiss authorities. Like UBS, Credit Suisse was listed among 30 international banks deemed too big to fail because of their importance in the global banking architecture. But the collapse of three US regional lenders in March left the firm looking like the next weakest link in the chain. The Swiss government feared Credit Suisse would have quickly defaulted and triggered a global crisis, shredding Switzerland's reputation for sound banking. But its chosen option for dealing with the issue was certainly a boon to UBS, which will now swell to manage $5 trillion of invested assets. Confidence 'evaporated' UBS chief Sergio Ermotti acknowledged in a recent interview with the SonntagsZeitung weekly that the bank had been "worried" about its competitor since 2016, and had among other things looked into the possibilities of buying it, for fear a foreign lender might snap it up. He acknowledged that Credit Suisse may have survived for a time if the central bank had injected more cash, "but it would not have been enough, since confidence had evaporated". Since the takeover announcement in March, UBS has seen its share price soar 31 percent. But the bank still faces significant challenges, Vontobel analyst Andreas Venditti told AFP. The $29 billion "is a huge one-off gain, but this is just accounting", he said, stressing that "the losses and costs will come later". The analyst, who a few months ago wondered in a note whether UBS had secured "the deal of the decade or a decade of headaches", stressed that "it's going to be a huge task". He said it would only become clear "whether it was worth it" after most of the restructuring is done three years down the line. Parts of the business are continuing to "produce huge losses", he said, warning "many things can still go wrong". Swissquote analyst Ipek Ozkardeskaya agreed, recalling that "UBS was forced" into the merger. Now it is up to the bank to "transform an 'obligation' to its advantage". The post UBS’s Credit Suisse takeover, ‘deal of the century’? appeared first on Daily Tribune......»»
Presidential aspirant pushes dollarization, central bank abolition
Argentine presidential candidate Javier Milei, a proponent of dollarization, is vowing to scrap the country’s central bank to address inflation and peso devaluation. “Ending inflation is possible, we just have to take the monetary weapon away from politicians,” the 52-year-old lawmaker, referring to the central bank, said. With annual inflation at 113 percent, and a peso that was devalued by 20 percent this month, experts say the lure of Milei’s dollarization idea is that many Argentines feel they have nothing to lose. The United States dollar has long been a refuge for Argentines from pesos which lose value faster than they can spend them. Citizens bypass strict currency controls to buy dollars from a flourishing parallel market and squirrel them away at home in what is often their only viable means of savings. Argentina pegged the peso to the dollar at a one-to-one convertible rate in the 1990s as a way out of hyperinflationary cycles of up to 3,000 percent. After a decade, the fixed exchange rate became untenable and in 2001, the government uncoupled the peso from the dollar, leading its value to plummet and causing a run on banks as people’s savings were wiped out. Panic, looting and protests led to 39 deaths in social unrest that followed. A few days after the devaluation, Argentina defaulted on its foreign debt, further deepening its economic and social crisis. Dollarization involves replacing a currency entirely with the US dollar, which offers a more stable currency, but removes government control of monetary policy — such as setting interest rates or taking measures to target inflation. In Latin America, Ecuador, El Salvador and Panama have adopted the dollar as their main currency. WITH AFP The post Presidential aspirant pushes dollarization, central bank abolition appeared first on Daily Tribune......»»
RFO Home to Go promo offers easy home ownership
The RFO (Ready-For-Occupancy) Home to Go promotion, launched by Amaia, simplifies home-buying. One benefit of investing in an RFO unit is that prospective buyers can examine the home’s aesthetic first-hand since the unit is already entirely constructed. Also, customers can see the existing community vibe before purchasing. Most RFO homes already have amenities like swimming pools and basketball courts, which residents may readily enjoy. Since the unit is entirely built, buyers can immediately move in, while investors can rent out the unit sooner and get a faster return on their investment. Recognizing the importance of affordability to aspiring property owners and given that each person’s financial requirements and resources are unique, Amaia has partnered with reputable banks such as BPI (Bank of the Philippine Islands) and CTBC (Chinatrust Commercial Bank) to provide several convenient payment options. Since clients may select the plan that best conforms to their budget, they can begin their homeownership journey without financial stress. Amaia’s RFO units are located amidst both the hustle and bustle of the city and the serenity of the suburbs. Project locations include condos in Alabang, Sucat, Cubao, Shaw, Altaraza (San Jose del Monte), Pasig, Mandaue (Cebu), Capitol Central (Bacolod); townhouses in Novaliches, Vermosa (Imus) and Nuvali (Calamba); and house and lot units in General Trias, Cabuyao, San Pablo, Lucena, San Fernando, Cabanatuan, Capas, Urdaneta and North Point (Bacolod). Amaia’s RFO Home To Go is the ideal solution for people looking for a simple and quick path to homeownership. It offers immediate occupancy, significant discounts, affordable payment plans and many projects. The post RFO Home to Go promo offers easy home ownership appeared first on Daily Tribune......»»