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Ex-execs seek DENR probe of damages by Rapu-Rapu mine By Manly M. Ugalde Correspondent
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EGAZPI CITY—A former mining executive of the South Korean-owned RapuRapu Mining consortium in Albay has asked President Duterte to order a probe and study the abandoned town of Rapu-Rapu, after it was mined out of minerals that generated a whooping income of P65 billion in five years and left with a measly P158 million in rehabilitation fund. Among the minerals mined on the tiny island were gold, copper, zinc and bronze in a 186-hectare land, where two disastrous cyanide spills dumped mine tailings to coastal villages, resulting to heavy fish kills in Rapu-Rapu and neighboring coastal communities of Sorsogon province. Cecille A. Calleja, communication executive of South Koreanowned Rapu-Rapu Mines, was one of four complainants in the environmental case filed against four top officials of the Department of Environment and Natural Resources See “Rapu-Rapu,” A2
A broader look at today’s business n
Sunday, August 14, 2016 Vol. 11 No. 309
BSP expands liberalization of rules on forex trading Fed officials challenge decades of accepted A wisdom on inflation By Bianca Cuaresma
@BcuaresmaBM
S part of its effort to update regulations to match the changing needs of the local economy, rules governing transactions in foreign exchange (forex) were liberalized again this week, with different salient points aimed to ease forex access to individuals and corporates alike.
“Following the thrust toward greater openness in view of the country’s increasing integration with global markets, the Bangko Sentral continues to review its existing regulations, particularly those governing transactions in forex,” the central bank said in a statement. Earlier this year, the bank moved to ease rules on foreignexchange transactions in the country to benefit select sectors of the economy. This liberalization of forex rules is part of a series of reforms initiated by the central bank since See “Forex,” A2
In this June 22, 2016, file photo, Federal Reserve Chairman Janet L. Yellen testifies on Capitol Hill in Washington before the House Financial Services Committee hearing on US monetary policy. AP/Manuel Balce Ceneta
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BIG CATCH
Struggling his way out from the dehydrating riverbed of the Magat Dam reservoir in Ramon, Isabela, an enterprising fisherman shows his catch of big-size tilapia from the wild waters upstream. While Metro Manila and other parts of the country are under water, the reservoir of the multipurpose dam that generates power and irrigation has dropped to alarmingly low levels, and continues to decline due to the dry spell being experienced in the province. LEONARDO PERANTE II
Clark offers afternoon flights to PAL, CEB By Joey Pavia
we will be saved
Lord Jesus Christ, You have taught us to be merciful like the heavenly Father, and have told us that whoever sees You sees Him. Show us Your face and we will be saved. Your loving gaze freed Zacchaeus and Matthew from being enslaved by money; the adulteress and Magdalene from seeking happiness only in created things; made Peter weep after his betrayal; and assured Paradise to the repentant thief. Let us hear, as if addressed to each one of us, the words that You spoke to the Samaritan woman: “If you knew the gift of God!” We ask this of You, Lord Jesus, to bless and forgive each one of us, so we become the true children of God the Father. Amen! Give Us This Day, Committee on Divine Worship, Shared by Louie M. Lacson
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Correspondent
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LARK FREEP O R T— Clark Internation a l Airport Corp. (CIAC) President and CEO Emigdio P. Tanjuatco III said airline companies, including Cebu Pacific (CEB) and Philippine Airlines (PAL), could begin local commercial flights at the Clark International Airport (CIA) “even by tomorrow,” because they have no flights the whole afternoon every day. In a phone interview on Saturday, Tanjuatco said the CIA averages about 16 flights per day, but
PESO exchange rates n US 46.7330
COMMERCIAL planes of Cebu Pacific at the main terminal of the Clark International Airport in Pampanga. JOJO DUE
it has no flights from noon until 6 in the evening. He said they have 100 flights per month. Tanjuatco said commercial
airlines operating at the Ninoy Aquino International Airport (Naia) “fight for the schedule, from See “Clark,” A2
VER the last year, Federal Reserve (the Fed) officials have dramatically curtailed ambitions for interest-rate increases, even as inflation has risen and unemployment has declined. So what gives? Perhaps just as important as the increased attention being paid to headwinds from abroad are the changing attitudes of Fed policy-makers toward inflation. That suggests more confidence they can afford to keep borrowing costs lower for longer, because there is less concern that price pressures will get out of hand. Conventional wisdom says actual inflation trends depend largely on inflation expectations and, to a lesser degree, the amount of slack in the economy. The significance of the latter has been called into question as economic slack has been used up. As Fed Chairman Janet L. Yellen put it during a June 6 speech, a stronger labor market would typically be expected to push inflation higher. “But such estimates are inherently imprecise, and the effect on inflation could turn
out to be significantly different, either upward or downward, than I expect,” she said. Central bankers are also coming to terms with the fact they don’t really understand what they believe to be the more important determinant of inflation—expectations— very well either. Take a recent study by Fed economist Jeremy Nalewaik, who found that while inflation expectations and actual inflation were closely connected prior to the mid-1990s, the relationship has deteriorated markedly since then. “Movements in inflation expectations now appear inconsequential, since they no longer have any predictive content for subsequent inflation realizations,” Nalewaik wrote. He cited as a potential explanation for this a hypothesis offered in a 2000 paper coauthored by Yellen’s husband, Nobel prize-winner George Akerlof, who wrote that “when inflation is low, it may be at most a marginal factor in wage and price decisions, and decision-makers may ignore it entirely.” See “Inflation,” A2
n japan 0.4584 n UK 60.5473 n HK 6.0253 n CHINA 7.0407 n singapore 34.8027 n australia 35.9610 n EU 52.0559 n SAUDI arabia 12.4661
Source: BSP (12 August 2016 )