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Saturday, January 23, 2016 Vol. 11 No. 107
P. | | 7 DAYS A WEEK
SINGAPORE LEADS EFFORTS TO DEVELOP NEW CRUISE PRODUCTS
Asean firming up cruise strategy to hike arrivals B M. S F. A
INSIDE
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Special to the BM
HE Association of Southeast Asian Nations (Asean) will be developing new cruise products to boost intraAsean travel and encourage more international tourists to visit the region.
THAT 81-POINT GAME
In a news briefing on Friday, AK Zulkairi Pg Abdul Razak of the Ministry of Primary Resources and Tourism of Brunei Darussalam said “the Singapore Tourism Board is working with cruise
SPORTS
lines to develop new cruise products in Asean.” He added that Asean recorded a 13-percent increase in port calls in Southeast Asia from 2013 to 2015. S “A,” A
70,000 Number of international cruise passengers attracted by the Philippines in 2015, up 16 percent from 2014’s 60,183
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VIETNAM PM RETAINS SLIM CHANCE FOR TOP POST BusinessMirror
World The
B2-1 | Saturday, January 23, 2016 • Editor: Lyn Resurreccion
THE Capitol in Washington, on Thursday morning, after less than an overnight snow that created hazardous road conditions and major traffic delays. The Washington region could get up to 2 feet of snow along with strong winds and whiteout conditions on Friday night and Saturday. AP/J. SCOTT APPLEWHITE
Monster blizzard on eastern US
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ASHINGTON—A massive blizzard plodded toward the eastern United States on Friday, with forecasters predicting more than 2 feet of snow in Washington and a state of emergency declared in five states and the District of Columbia. Schools and government offices were being closed pre-emptively, thousands of flights canceled and food and supplies disappeared from grocery and hardware stores. College basketball games and concerts would have to wait. The capital’s subway system announced that it would shut down entirely late on Friday night and remain closed through Sunday for the sake of employee-and rider-safety. Underground station usually stay open during major snowstorms. The director of the National Weather Service said all the ingredients have come together to create blizzards with brutally high winds, dangerous inland-flooding, white-out conditions and even the possibility of thunder snow, when lightning strikes through a snowstorm. The snowfall, expected to continue from late Friday into Sunday, could easily cause more than $1 billion in damage and paralyze the Eastern third of the nation, Weather Service Director Louis Uccellini sad. “It does have the potential to be an extremely dangerous storm that can affect more than 50 million people,” Uccellini said at the service’s Weather Prediction Center in College Park, Maryland.
Washington looks like the bull’s-eye of the blizzard, and New York City is just inside the slow-moving storm’s sharp northern edge, which means it is likely to see heavy accumulations, Uccellini said. Weather Prediction Center meteorologist Paul Kocin estimated more than 2 feet for Washington, a foot to 45 centimeters for Philadelphia and eight inches to a foot in New York. Unfortunately, more than just snow is coming. Uccellini said it won’t be quite as bad as Superstorm Sandy, but people should expect high winds, a storm surge and inland flooding from Delaware to New York. Other severe but non-snowy weather is likely from Texas to Florida as the storm system chugs across the Gulf Coast, gaining moisture. White House Spokesman Josh Earnest said Obama would hunker down at the White House, and is confident local officials will get it right. On Thursday, icy conditions caused accidents that killed two drivers in North Carolina and one in Tennessee. A truck with a snowplow killed a pedestrian while it was snowing in Maryland. States of emergency were declared in Tennessee, North Carolina, Virginia, Maryland, Pennsylvania and parts of other states, where road crews were out in force on Thursday. Blizzard warnings or watches were in effect along the storm’s path, from Arkansas through Tennessee and Kentucky to the mid-Atlantic states and as far north as New York. AP
China busts 35 restaurants using opium poppies as seasoning
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EIJING—Thirty-five restaurants across China, including a popular Beijing hot pot chain, have been found illegally using opium poppies as seasoning, one of the more unusual practices bedeviling the country’s food regulators. Five restaurants are being prosecuted while 30 others, ranging from Shanghai dumpling joints to noodle shops in southwestern Chongqing, are under investigation, said the China Food and Drug Administration. Cases of cooks sprinkling ground poppy powder, which contains low amounts of opiates like morphine and codeine, in soup and seafood are not new in China, though it is unclear whether they can effectively hook a customer or deliver a noticeable buzz. Shaanxi provincial police busted a noodle seller in 2014 after being tipped off by a failed drug-test. Seven restaurants were closed in
Ningxia province in 2012 for using the additive and Guizhou province shut down 215 restaurants in 2004. Hu Ling, the general manager of Hu Da, a popular chain with several adjacent locations on the raucous Beijing nightlife strip known as “Ghost Street,” confirmed on Friday the company was under investigation, saying it may have unknowingly sourced seasoning containing opiates. She declined further comment. Poppy powder, made from capsules and shells that contain higher opiate content than the seeds commonly seen on bagels, can be easily purchased in markets in western China for about $60 a kilogram, according to a 2014 report by the official Xinhua news agency. The additives were commonly mixed with chili oil and powders, making detection difficult without laboratory equipment. AP
Vietnam PM retains slim chance for shot at top post
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ANOI, Vietnam—Vietnam’s prime minister still retains a slim chance of challenging his rival, the ruling communist party chief, for the top job, according to a new interpretation of complicated rules disclosed at the start of a party congress that will name national leaders next week. The Communist Party of Vietnam began an eight-day congress on Thursday, which is held every five years for a usually orchestrated transfer of power to a new set of leaders. But this time, a rare tussle emerged between party General Secretary Nguyen Phu Trong and his longtime rival, Prime Minister Nguyen Tan Dung, that will be played out at the congress being attended by 1,510 delegates representing Vietnam’s 63 provinces, ministries and party organizations. Regardless of who becomes the chief, analysts say there will be little change in the way Vietnam is run, or in the economic policies that favor some free-market reforms. However, Dung, who has spearheaded the reforms over the last five years, is backed by the business community and investors. He is also seen as being tougher on China, which has irked Vietnam by expanding its territorial ambitions in the South China Sea. His rivals in Trong’s camp have, however, accused him of economic mismanagement and corruption. “Corruption and wastefulness remain serious problems...causing discontent in the public, affecting people’s trust in the party and the state,” Trong warned in his speech to open the congress.
Dung, who has built up considerable support within the party through patronage, has ambitions to be general secretary, the de facto Number one in the collective leadership that rules Vietnam. The leadership comprises a 16-member Politburo, which looks after the day to day aff airs, and a larger Central Committee that handles policy. Earlier this week it was thought that Trong had sidelined Dung when a preparatory meeting agreed to continue with a controversial 2014-rule barring all but officially nominated candidates from consideration, with no new nominations allowed from the congress floor. Trong was endorsed as the general secretary candidate earlier this month. However, on Thursday Minister of Information and Communications Nguyen Bac Son gave a new interpretation of the rule that suggested Dung’s case might not be hopeless. Son said that while the Central Committee members’ hands were tied, other delegates at the congress were free to nominate anyone they wished. A Central Committee member such as Dung would be obliged by the rule to refuse nomination, but
delegates could reject his refusal, said Son. Such a scenario could set up a showdown with Trong. None of this drama, however, will be played out in the public. All proceedings of the Communist Party, which is empowered by the constitution to rule the country, are held behind closed doors. Even if there is an outright confrontation between the two leaders, the delegates are unlikely to take a vote, and the contest will be settled through negotiations and consensus. Over the next week, the congress will review and set national and party policies, and select a new 180-member Central Committee. On one of the last days of the congress, the new Central Committee will meet to select a Politburo from among its ranks and pick one of them as party general secretary. A united face will be presented on January 28 when the congress will announce the names of the new general secretary, the prime minister, the president and the chairman of the National Assembly, along with other top posts. The actual selection of the last three leaders will be done by the National Assembly, which will be elected in May by popular vote, although the candidates will first have to be approved by the Communist Party. A compromise is already believed to have been reached, under which Trong would stay as general secretary for two years instead of five, and a Dung supporter would become the chairman of the National Assembly. The prime minister’s post would go to a neutral person and the president would be a Trong loyalist. This configuration “would be a demonstrable loss for Dung” but it should not be “confused with an outright win by Trong,” said Christian Lewis, a Vietnam expert at the New York-based Eurasia Group think tank. “It is instead a composi-
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Members in Vietnam Puliburo
tion that reflects a desire for a balance and more consensus-driven decision-making at the very top,” he wrote in a commentary. The economic reforms Dung had been backing have brought a flood of foreign investment, created a fledgling stock market and helped triple per capita GDP to $2,100 over the past 10 years. At the same time, he is not without blemish. His rivals accuse him of economic mismanagement and failing to control massive public debt and non-performing loans of stateowned banks. Vietnam is one of the last remaining communist nations in the world, with a party membership of 4.5 million, but like its ideological ally China, the government believes in a quasi-free market economy alongside a strictly controlled society that places several restrictions on its 93 million people. Lewis said the new set of leaders will also support the current economic reforms and trade policy. Notably they remain committed to the Trans-Pacific Partnership with the United States and other key trade deals including the free trade agreement with the European Union. Vietnam has an ambivalent relationship with China. Despite being its largest trading partner, China is also a security challenge. Beijing has been expanding its territorial assertions in the South China Sea, but Vietnam has pushed back against those claims. Dung has been seen as standing up to Beijing, not afraid to criticize it, while Trong was seen as being soft on China. AP
WORLD
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FLOOD-FREE Jan Willem Roehl of Flexbase (from left), consultant for Vistaland; Ambassador Marion Derckx of the Netherlands; Manuel Paolo Villar, CEO and president of Vistaland; and Neric Acosta, Laguna Lake Development Authority secretary, lead the inauguration of the Vintahanan floating village at the Laguna Lake. Designed to float on water, the project is built to serve as a model of a floating village, with proper waste-management system in place. NONIE REYES
EMERGINGMARKET ROUT DEEPENS AS CHINA FAILS TO HALT CAPITAL EXODUS
We will see a very volatile period, as markets are still faced with the conundrum on oil and global growth.”—Ramos
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HE $2.3-trillion rout in emerging-market stocks deepened, as the capital exodus from China showed ,no signs of abating. Russia’s ruble plunged to a record, as investors dumped the currency of the world’s largest energy exporter. Cash injections by the world’s second-biggest economy to ease a money-market squeeze failed to improve sentiment, as shares in Shanghai and those in Hong Kong extended losses. Qatar led declines among most equity markets in the Middle East, as Brent crude traded below $30 a barrel. The ruble weakened 1.5 percent against the dollar. Brazil’s real slid to the lowest since September, after the central bank unexpectedly refrained from raising interest rates. Developing-nation stocks have made the worst start to a year on record, with at least 26 emerging and frontier markets in bear territory. The epicenter of the sell-off is in China, where the slowest growth since 1990 and yuan volatility have shaved off $4.3 trillion from the nation’s equities. Lower demand from the world’s second-biggest economy has contributed to a plunge in commodity prices to a record, sparking a contagion across exporting nations such as Russia and Brazil. “The bear sentiment is just a case of the blues for a lot of the investors; there’s a feedback between oil prices, China and rest of the emerging markets,” Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management, who helps oversee $242 billion, said by phone from Menomonee Falls, Wisconsin. “It’s just unfortunately going to take sometime to play out here.” The MSCI Emerging Markets Index slid 0.6 percent to 688.52, reversing earlier gains of as much as 0.9 percent. The gauge closed at the lowest since May 2009, sending valuations to the cheapest since March 2014. A technical measure signaled weakening momentum in the MSCI gauge. The 14-day relative strength index hovered below 30 for a 12th day. While traders see a temporary dip to that level as a sign of an upcoming rebound, they interpret a prolonged stay below that threshold as indication a downtrend is taking hold. S “E ,” A
Ayala Land, LT Group to jointly develop 35-ha township on C-5 Road B VG C
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ROPERTY developer Ayala Land Inc. and LT Group Inc., the holding firm of tycoon Lucio C. Tan, will jointly develop a project along the C-5 corridor that is envisioned to become a township development spanning portions of Pasig City and Quezon City. Ayala Land did not give the details of the agreement. But based on initial information available,
the project is a 35-hectare mixeduse development to be undertaken by Ayala Land and Eton Properties Philippines Inc., the property-development arm of the LT Group, based on their joint master plan. “Our shared vision and commitment to this project will open new opportunities for economic growth, which will contribute to the development of the community,” said Bernard Vincent Dy, Ayala Land president and CEO.
PESO EXCHANGE RATES n US 47.8680
DY: “Our shared vision and commitment to this project will open new opportunities for economic growth, which will contribute to the development of the community.”
“We are very pleased to be entering into a joint venture with Ayala Land. We believe that this is an excellent partnership that will enable us to build an outstanding mixed-use development which will offer a wide range of property investment and lifestyle options to customers,” Tan, LT Group chairman, said in a statement. Eton earlier said it is focusing on constructing office buildings, with its projects through 2018 target-
ing business-process outsourcing (BPO) firms. The company said it is adding an additional 200,000 square meters of office space in a span of three years, or more than doubling its current offering for the BPOs. The company has already built some 124,000 sq m of projects in Quezon City and Ortigas Center dedicated to BPOs, all of which are fully occupied. The company said the bulk of its
expansion of office space over the next years is concentrated in the vast 1,000-hectare township of Eton City in Santa Rosa, Laguna. Eton, one of the lowest revenue contributors in the LT Group Inc., said its income for the three quarters of 2015 reached P197 million, an improvement over the P65 million last year. Rental income continues to account for a significant portion of S “T,” A
n JAPAN 0.4064 n UK 68.1018 n HK 6.1250 n CHINA 7.2751 n SINGAPORE 33.4250 n AUSTRALIA 33.3250 n EU 52.0804 n SAUDI ARABIA 12.7546
Source: BSP (22 January 2016 )