BusinessMirror February 6, 2016

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Saturday, February 6, 2016 Vol. 11 No. 121

Manila signs Asean protocols on aviation B M. S F. A

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HE Philippines has finally signed protocols 5 and 6 of the 2009 Multilateral Agreement on Air Services (MAAS) that would give airlines of Asean member-states unlimited third, fourth and fifth freedom rights to operate between capital cities.

INSIDE

GLOBAL AMBITIONS A8 | S

Sports BusinessMirror

ATURDAY, FEBRUARY 6, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

GLOBAL AMBITIONS Chinese spending on soccer had been growing impressively in recent years, but soared to unexpected heights in the just-completed transfer window.

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B J D The Associated Press

HE European transfer window is not so European any more, with Chinese clubs outspending even the continent’s richest clubs in January to prove that the country is now a genuine power in attracting the world’s best players. Chinese spending on soccer had been growing impressively in recent years, but soared to unexpected heights in the just-completed transfer window. Guangzhou Evergrande, the reigning Asian club champions already boasting the likes of Ricardo Goulart and Paulinho, paid $47 million to Atletico Madrid to sign Colombian striker Jackson Martinez. It was the biggest deal of the January transfer window—anywhere—and the second biggest was Jiangsu Suning signing Ramires from English champion Chelsea for around $31 million. There’s mounting speculation in the European media about which star players will soon join the exodus to the east. Guangzhou President Liu Yongzhou acknowledges the pressure this puts upon the club, and coach Luiz Felipe Scolari, to keep ahead of the chasing pack. “We have been satisfied with the squad we have but even as champion of China and Asia, we are always looking to improve,” Liu told the Associated Press. “The secret to being a good team is to continually strive for excellence. The Chinese Super League is getting stronger and it is important that we are always getting stronger too. “We also have ambitions to keep succeeding in Asia.” Evergrande’s ultimate target is to win the International Football Federation Club World Cup and become one of the top clubs in the world. Financially, it already is getting there. Chinese rivals, such as Shanghai SIPG, are desperate to wrest the domestic and even the Asian title away. Shanghai, 2015 runner-up, is led by former England Coach Sven Goran Eriksson, who has compiled a $50-million strikeforce in Asamoah Gyan and Elkeson and has been chasing former Arsenal and Manchester United star Robin van Persie. Guangzhou is backed by property developer Evergrande and Alibaba, one of the world’s biggest e-commerce sites, while Shanghai is backed by Shanghai International Port Group. Compared with recent years,

WILL FACEBOOK WORK?

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EW YORK—It’s the pain of crowds: Texts, photos and video streams take forever or just can’t get through. You might have run into this at a concert where everyone’s trying to post selfies with the headliners at once, or at big conferences and sporting events. Fans at Sunday’s Super Bowl in Santa Clara, California, might see a similar cellular jam. Here’s why it happens and what phone companies are doing about it:

WHY DOESN’T MY PHONE WORK IN A CROWD?

LOTS of phones are competing for the attention of a cellular network’s antennas. Networks are further strained because these are times when people are apt to use data-heavy applications, such as photo and video sharing. You might see bars on your phone showing there’s a signal available, yet nothing’s getting through. That happens because the phone’s failing to get “associated” to the network, says Don Bowman of Sandvine, which sells networking equipment. “Your phone knows it’s there but doesn’t know how to use it,” he says. “You’ll have the bars but it won’t seem to connect.” One clue: The “LTE” letters fail to show up next to the bars.

more yuan is being spent by more and more teams, not just those at the top. Hebei, backed by an industrial parkdevelopment company, may be little known and newly promoted to the top tier but has signed African star Gervinho from Italian giant Roma for $20 million. Jiangsu had regularly been a mid-table team but since being taken over by a large retail group, has been linked with dozens of world famous stars as it tries to spend a reported transfer fund of $200 million. Shanghai Shenhua—owned by a real-estate company—already had Tim Cahill but has signed Freddy Guarin from Inter Milan. “When China invests it does so on an epic scale and in a way that overcomes all obstacles,” said Simon Chadwick, a professor of Sports Enterprise at Salford University and a regular China commentator. “As such, there are strong reasons to believe that within 10 years, possibly even five, China will become a major player in world football.” The nation is also building at youth level to ensure the spending boom does not turn into a bust in the long term. Tom Byer, a youth development expert, is employed as a consultant to the Chinese Ministry of Education as it rolls out a soccer program in schools. “I don’t think there is any other program similar throughout the world that is this big,” Byer said. “The government is serious about development and also realizes grassroots development is not the glamorous side of the game and is often neglected by the media. This is a marathon, not a sprint.”

WHAT CAN CELL-PHONE COMPANIES DO?

PHONES have gotten better at sending requests to the network, and networks have gotten better at managing traffic. But then again, smartphone use continues to grow, so jams are difficult to avoid. Phone companies can mitigate congestion when they know of a big event ahead of time. The phone companies have a mix of strategies, but collectively they have

FLYING HIGH THE US’s Morgan Northrop competes in the women’s

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whether there is a link between Zika infections in pregnant women and a rare birth defect. International Olympic Committee President Thomas Bach said this week he was “very confident” the games would take place. And Rio organizers have repeatedly said there is no talk of calling off the games. Hilton said the WHO had not banned travel because of Zika, though pregnant women have been advised not to travel to Zika areas. Hilton also noted the cooler, drier Brazilian weather in the South American winter when the games open on August 5 will drive down the mosquito count. The Zika virus adds to other problems with South America’s first games, including severe water pollution in Rio’s sailing and

added or upgraded antennas in the stadium and cell towers nearby and installed “small cells” to improve capacity in the stadium. Small cells typically look like boxes, says Monica Paolini, the president of wireless advisory firm Senza Fili Consulting, and, yes, are smaller than the cells you’d find on rooftops and cell towers. These small cells have a smaller range than regular cell towers, but they can supplement those towers to boost capacity in dense areas. Many of these improvements are permanent, so coverage should improve even after the game. Verizon, AT&T, Sprint and T-Mobile are also bringing in temporary cell sites, called “Cell on Wheels,” or cows, to cover Santa Clara, where the stadium is, and events in San Francisco.

The ratification document, signed by President Aquino on Thursday, effectively opens up Manila to more foreign

WI-FI HELPS, TOO

NEWER sports venues are more likely to have Wi-Fi, which relieves stress on the cell-phone network. Levi’s Stadium, where the Super Bowl is taking place, got Wi-Fi when it opened in 2014. It’s free for visitors. Historically, Wi-Fi equipment has been installed high up in ceilings or walls. At Levi’s, routers are sprinkled underneath seats throughout the stadium to improve Wi-Fi performance. That helps prevent obstructions from steel and other construction materials and gets people physically closer to the routers. Comcast Business provides the stadium’s Wi-Fi network connectivity and has brought in temporary Wi-Fi systems at events elsewhere, such as golf tournaments.

WHY DOES THE SUPER BOWL REQUIRE MORE INVESTMENT AND EQUIPMENT?

PEOPLE are expected to use more data than the 6.4 terabytes at last year’s Super Bowl. Last year’s number alone is more than double what’s typical for a San Francisco 49ers football game at Levi’s. A million visitors are expected in the San Francisco Bay Area, which Gartner analyst Bill Menezes says has traditionally been a hard area for cell companies to cover because of its hills.

airlines, although BM sources intimated that their landings would still be subject to slots available at

This will allow more competitive fares for our people, more connectivity, and further bring opportunities for our people.”—Abaya

ZIKA SPREAD RAISES CONCERNS ON RISKS CONFRONTING ASIA

If a tourist hub were hit, visitors might reconsider travel plans, hurting businesses from airlines to hotels.”

the Ninoy Aquino International Airport (Naia), the country’s premier gateway. While largely ceremonial in the case of the Philippines and Indonesia, C  A

YOUR PHONE ISN’T WORKING. WHAT SHOULD YOU DO?

“YOU hate to think of this, being the oldfashioned way,” says Menezes—but holding your phone high in the air and walking around could help you find a signal. And texts will get through more readily than a phone call. Menezes also recommends using apps put out by signaltesting companies like RootMetrics and OpenSignal. They can show you where connectivity has been working better recently. Paolini recommends going outside if you’re indoors, trying to find a Wi-Fi hot spot and holding off on sending photos and video.

aerial event during the World Cup freestyle skiing competition on Thursday in Deer Valley, Utah. AP

WILL CELL PHONES WORK NORMALLY?

THAT’S the goal. But there are unknowns. For instance, mass use of newer live video-streaming apps like Twitter’s Periscope could clog the networks. “If everybody was in Periscope at one time, at the exact same time, yeah, things wouldn’t move as quickly,” said John Guillaume, a vice president with Comcast Business. AP

Olympics will go on IO DE JANEIRO Brazil’s sports minister said on Thursday that a cancellation of the Rio de Janeiro Olympics because of the outbreak of the Zika virus “is not in discussion.” Sports Minister George Hilton issued a statement saying he “lamented material and opinions in the press” speculating that South America’s first games might be called off. “The Brazilian government is fully committed to ensure that the 2016 Rio games take place in an atmosphere of security and tranquility,” Hilton wrote. Brazil is the epicenter of an outbreak of the mosquito-borne Zika virus, which the World Health Organization (WHO) has called “an extraordinary event and public-health threat.” Health officials are investigating

Special to the BM

P.  |     | 7 DAYS A WEEK

rowing venues, and deep cuts of almost 30 percent to keep a $2-billion operating budget in balance. Only about half of the domestic tickets for the game have been sold, and organizers fear the Zika outbreak could scare off foreign tourists. “The 2016 Rio games will take place with full attention to the health of the participants,” Hilton said. Away from the games, Brazil is experiencing its deepest recession since the 1930s. Inflation is just over 10 percent, the Brazilian currency has lost 30 percent of its value in the last year against the dollar, and President Dilma Rousseff is fighting impeachment charges. AP

CAROLINA Panthers running back Jonathan Stewart leads his group in drills during practice on Thursday. AP

SPORTS

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WORLD PLEDGES $10B FOR SYRIANS The World BusinessMirror

news@businessmirror.com.ph

Editor: Lyn Resurreccion •

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In Brazil, even Zika can’t stop the Carnival

IN this December 23, 2015, file photo, 10-year-old Elison nurses his 2-month-old brother Jose Wesley, who was born with microcephaly, at their house in Poco Fundo, Pernambuco state, Brazil. The US Centers for Disease Control and Prevention said on January 13 that it has found the strongest evidence so far of a possible link between a mosquito-borne virus and a surge of birth defects in Brazil. AP

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VIVIANE OLIVEIRA, who’s three months pregnant, dances next to a sign that reads in Portuguese “Get out Zika” during a street carnival on Ipanema beach in Rio de Janeiro, Brazil, on January 31 at which agents of the city’s health secretary distributed kits with information about Zika virus. AP/SILVIA IZQUIERDO

World pledges $10B for Syrians

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ONDON—World leaders pledged more than $10 billion on Thursday to help fund schools, shelter and jobs for refugees from Syria’s civil war, money that British Prime Minister David Cameron said “will save lives, will give hope, will give people the chance of a future.” But participants at the aid conference in London acknowledged that prospects for ending the conflict have rarely been worse: Peace talks are suspended, fighting is intensifying, Russia and the West are at odds, and millions of Syrians are suffering from bombardment, homelessness and hunger. “The situation in Syria is as close to hell as we are likely to find on this Earth,” United Nations SecretaryGeneral Ban Ki-moon said. US Secretary of State John F. Kerry was no more upbeat. “After almost five years of fighting, it’s pretty incredible that as we come here in London in 2016, the situation on the ground is actually worse,” he said. The one-day meeting, held under tight security at a conference center near Parliament, aspired to bring new urgency to the effort to help the 4.6 million Syrians who have sought refuge in neighboring countries, including Jordan, Lebanon and Turkey. Another 6 million people or more are displaced within Syria, and a quarter of a million have been killed. Previous calls for international donations have come up short, and the five-year war has driven a chaotic exodus of hundreds of thousands of desperate refugees to Europe. Thursday’s pledges are intended to slow that migration, by creating school places and secure jobs for Syrian refugees in the Middle East, and economic support for the overburdened host nations. Cameron said participants had

10.6M Total number of displaced Syrians

pledged almost $6 billion for 2016, and another $5 billion by 2020. The British leader called the conference—hosted by Britain, Germany, Norway, Kuwait and the UN— “a real breakthrough, not just in terms of money but in terms of how we handle these refugee crises.” The tally falls short of the $9 billion the UN and regional countries said was needed for 2016 alone, but it was a significant improvement on half-hearted previous fundraising efforts. Last year’s conference, in Kuwait, raised just half its $7-billion target, forcing cuts to programs, such as refugee food aid. Aid groups welcomed the money, but slammed the international community for allowing the war to go on. Peter Maurer, president of the International Committee of the Red Cross, said the world had shown a “lack of political action and ambition to resolve the crisis.” “Humanitarian aid is always just a quick fix, and never enough,” he said. Cameron told reporters that the international community would stand with Syrians for “as long as it takes to secure peace,” acknowledg-

BRITISH Prime Minister David Cameron (center) gets ready to speak as Norwegian Prime Minister Erna Solberg (left) and German Chancellor Angela Merkel walk to take their seats at the start of the co-hosts news conference near the end of the “Supporting Syria and the Region” conference at the Queen Elizabeth II Conference Centre in London, on Thursday. AP/MATT DUNHAM

ing that the goals of a cease-fire followed by a transitional government remained distant. Thursday’s meeting opened hours after the latest UN-led bid to start peace talks in Geneva was suspended for three weeks—a sign of major difficulties. Kerry blamed Syria’s government and Russia for the peace talks stalling. He said he and Russian Foreign Minister Sergey Lavrov had spoken by phone on Thursday and agreed to continue discussing “how to implement the cease-fire.” Russia’s Foreign Ministry said the two had also agreed to try to ensure the pause in the talks was as short as possible. Neither statement mentioned any concrete measures. Russia gave the conference a cool reception, declining to send President Vladimir Putin or a senior minister to the event, attended by 30 heads of government or heads of state. Russia was represented by its ambassador to London, Alexander Yakovenko. The Syrian government, backed by Russian air strikes, has increased the pace of attacks on opposition forces in recent days as the talks faltered. The UN’s Ban told the conference

it was “deeply disturbing that the initial steps of the talks have been undermined by the continuous lack of sufficient humanitarian access, and by a sudden increase of aerial bombing and military activities within Syria.” He said that “the coming days should be used to get back to the table, not to secure more gains on the battlefield.” The stalled peace process increases pressure on donor countries to commit long-term aid to the war’s victims. Aid workers warn of a “lost generation” of Syrians if some 700,000 refugee children who are not attending school don’t get an education. Education campaigner Malala Yousafzai and 17-year-old Syrian refugee Mezon al-Melihan met with Cameron and other leaders to press for $1.4 billion for education for children in Syria and its neighbors. “Without education, who will bring peace?” al-Melihan said. Donor countries also want to see the refugees employed on infrastructure projects—which would also benefit the host nations—or in special business zones where Syrians and local people can work side by side.

In return for opening up their economies to the newcomers, host countries are promised loans from international financial institutions and more access to European markets. Cameron said the move would create 1 million jobs in the region, “for refugees and residents alike.” Syria’s neighbors had warned the conference that the burden of so many newcomers was becoming intolerable. Jordan’s King Abdullah said his country housed almost 1.3 million Syrian refugees, a fifth of Jordan’s population. The Jordanian figure includes all Syrians in the country; the UN says it has registered 630,000 Syrian refugees in Jordan. “We have reached our limit,” the king said. “Our country will continue to do what we can do to help those in need, but it cannot be at the expense of our own people’s welfare.” The exodus from Syria shows no signs of ending. Turkish Prime Minister Ahmet Davutoglu told the conference that 10,000 Syrians who have fled bombing in the city of Aleppo are waiting at the Turkish border, and as many as 70,000 others are on the way. Amateur video showed thousands, including women and children, running with their belongings toward the frontier. Turkey says it has taken in more than 2.5 million Syrians since the war began in 2011. More than 70 countries were represented at the conference, but there were few Syrians. Neither President Bashar al-Assad’s government nor opposition groups participated. In Jordan’s Zaatari refugee camp, home to 79,000 Syrians, some agreed with conference organizers that the best future for refugees was in their home region. “We don’t want to go to...foreign countries,” said Abu Khaled al-Nassar, a refugee from the southern town of Daraa. “With all my respect to these countries, the traditions are different, and we live here in an Arab country, Jordan. We understand each other. “So we call on the donor countries to support us with investments in order to find jobs. We don’t want to go to Europe—we will stay here, work and produce.” AP

IO DE JANEIRO—Brazilian Carnival could be called a hungry mosquito’s dream— five days of nonstop street parties that bring together millions of revelers in an inviting mass of bare ankles, uncovered legs and denuded torsos. So the mosquito-borne Zika virus might be expected to dampen this year’s debauchery. But despite warnings to cover up and slather on repellent, many insist the show will go on as it always has, in just a sprinkling of sequins and a few puffs of feather. Pants, longsleeve shirts and bug spray, they say, are antithetical to the hedonistic, out-of-control spirit of Carnival. “We need joy,” said Angela Pessanha, a self-described “Carnival nut” and owner of a home furnishings store. “And Carnival is the easiest way of doling out a stiff dose of joy to everyone.” This year’s celebrations, which began on Friday, come at a time when Brazil has little to celebrate. Latin America’s largest country is mired in its worst recession in generations, impeachment proceedings against President Dilma Rousseff are looming, a snowballing corruption investigation of the state oil company has taken down key political figures and rising unemployment and inflation are hurting the pocketbooks of average people. And then there is Zika, a virus that researchers here have linked to a birth defect that can affect the development of fetuses’ brains, leaving newborns with long-lasting health and developmental problems. But, many Brazilians say they are inured to the vagaries of a boomand-bust economy, unfazed by the near constant stream of corruption scandals and have long lived amid outbreaks of dengue, another virus transmitted by the Aedes aegypti mosquito that spreads Zika. “I’ve put it all out of my mind,” said college student Pedro Maciel, as he filled up a shopping cart with 12-packs of beer and bottle after bottle of the cheapest domestic vodka— ”fuel” he hoped would see his group of 16 friends, visiting Rio de Janeiro from southern Brazil, through at least the first day of the festivities. “Of course, these are all important issues that as a Brazilian I care about, but I won’t give them a second thought till the day Carnival ends.” The world’s Carnival capital, Rio, has been less hard-hit by the Zika outbreak than the country’s poor northeastern region, where most cases both of the virus and the birth defect microcephaly have been concentrated. Still, epidemiologists have called Carnival an “explosive cocktail” for the spread of Zika due to the potent combination of heat, crowds and exposed skin. This has prompted Rio authorities to step up their efforts against the mosquito. Fumigators have been plying the Sambadrome, where thousands of dancers in ensembles consisting of platform heels, a few strategically placed spandex triangles and sparkly body paint will mesmerize during this weekend’s samba school parades. Health workers will be deployed to many of the city’s more than 500 street parties, or “blocos,” where thousands of revelers defy the Southern Hemisphere midsummer sun to drink, dance, sweat and rub shoulders—and other body parts. They’re also urging revelers to cover up, but those admonitions appear to be falling on deaf ears, judging by the amount of bare skin on display at the pre-Carnival blocos that have flooded the streets in recent days. Tuesday’s announcement by health officials that a person in Texas has become infected with Zika through sex may put another kink into Carnival, where promiscuity is held as a core value. Competitions to see who can rack up the most make-out partners are common, and things often get more hot and heavy than simple snogging. AP

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HE World Health Organization this week labeled Zika, the mosquito-borne virus spreading through Latin America, and its possible association to birth defects a public-health emergency of international concern. There are fears Zika could spread further.

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LUCKY CHIMPS Monkey figurines are displayed in front of a charm store in Binondo, Manila. According to the Chinese owner, these charms will most likely attract good luck for the coming Year of the Monkey.

S “Z,” A

ALYSA SALEN

Neda: Cheap oil–while slowing inflation–threatens jobs of OFWs

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B C U. O

HE National Economic and Development Authority (Neda) said the country can expect the prevailing low inflation regime to continue—as shown by the 1.3-percent average hike in the cost of goods in January—with the depressed prices of oil. The downside, however, is the jobs of overseas Filipino workers (OFWs) are threatened. Economic Planning Secretary

Emmanuel F. Esguerra said that, as lower oil prices are seen to continue this year, the government must pre-pare for the possibility that some OFWs may be sent home. “Such developments could ad-versely affect overseas Filipino workers, as the governments of the said economies implement auster-ity measures, cut back on subsidies, postpone infrastructure outlays and raise taxes,” Esguerra said. “ T he go ve r n me nt shou ld actively extend assistance to dis-

PESO EXCHANGE RATES n US 47.7530

ESGUERRA: “The government should actively extend assistance to displaced workers, including retraining, livelihood, reintegration or placement services.”

placed workers, including retraining, livelihood, reintegration or placement services,” he added. The low oil prices being experienced globally, Esguerra said, has already resulted in the slowdown of inflation in the country. In January the Philippine Statistics Authority (PSA) said inflation slowed to 1.3 percent, from 2.4 percent in January 2015. It is a lso slower than the 1.5-percent inflation rate posted in December 2015. The January 2016

inflation, however, is still within the Bangko Sentral ng Pilipinas’s target range of 0.8 percent to 1.6 percent for the period. The PSA said cheaper oil prices kept the prices of food and nonfood items, such as transportation prices, low during the period. “Domestic prices of petrol— gasoline, liquefied petroleum gas, diesel and gasoline—continued to go down. This was still due to persistent global oversupply and record stockpile of crude oil,

which weakened prices of Dubai oil, Brent and West Texas Intermediate [WTI],” said Esguerra, who is also the Neda director general. Esguerra also said price reductions in electricity, gas and other fuels also continued due to lower generation cost. However, he said, this was at a slower pace than in December 2015, due to higher transmission charges. In January the Neda said prices of food items such as fish, S “C ,” A

n JAPAN 0.4092 n UK 69.6716 n HK 6.1331 n CHINA 7.2743 n SINGAPORE 34.2119 n AUSTRALIA 34.4862 n EU 53.5359 n SAUDI ARABIA 12.7375

Source: BSP (5 February 2016 )


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