Businessmirror august 27, 2016

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“He’s taking hate groups mainstream and helping a radical fringe take over one of America’s two major political parties.”—Hillary Clinton, accusing Donald Trump of unleashing the “radical fringe” within the Republican Party, including anti-Semites and white supremacists, dubbing the billionaire businessman’s campaign as one that will “make America hate again.” AP

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“To Hillary Clinton, and to her donors and advisers, pushing her to spread her smears and her lies about decent people, I have three words. I want you to hear these words, and remember these words: Shame on you.”—Donald Trump, rejecting Clinton’s allegations, defending his hard-line approach to immigration while trying to make the case to minority voters that Democrats have abandoned them. AP

“I think there would be more than enough work for a council of applied historians.”—Graham Allison, a professor of government and director of Harvard’s Belfer Center, calling on the next US president to create a Council of Historical Advisers that would tackle present problems by looking to the past. Along with Niall Ferguson, they contend that few leaders from any presidential administration have shown a deep understanding of history in the Middle East, for example, or of the US’s involvement in the region. AP

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A broader look at today’s business n

Saturday, August 27, 2016 Vol. 11 No. 322

D.A. TO TAP PRIVATE SECTOR, LGUs IN RICE SELF-SUFFICIENCY PROGRAM

Palace abandons rice program, but not Piñol

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INSIDE

By Jasper Emmanuel Y. Arcalas

@arteliterary

he Department of Agriculture (DA) will now have to look for other funding sources for its rice self-sufficiency dream, after the Department of Budget and Management (DBM) deleted the P18-billion supposed allocation for the program.

‘Taking care of the elderly can be a joy’

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₧18B

The budget sought by Agriculture Secretary Emmanuel F. Piñol for the rice program that was scrapped by the DBM Continued on A2

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saudi exec sees oil-outPUT freeze as ‘positive’ The World BusinessMirror

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Iran’s oil minister became the latest Organization of Petroleum Exporting Countries (Opec) member to say he will attend a meeting of producers in Algiers next month to discuss market conditions, including the possibility of keeping crude production at current levels. Saudi Arabia rejected an earlier attempt by some in the Opec to freeze output at an April meeting in Doha. “We will be willing to listen to our colleagues, what they have to offer in that area,” Khalid Al-Falih, who became Saudi energy minister in May, said in an interview on Thursday in Los Angeles. “I don’t believe that an intervention of significance is required. I certainly don’t advocate a cut.” Crude oil has gained about 13 percent since Opec said it would meet informally to discuss prices and supply, on speculation that the group could agree to freeze output levels. Benchmark Brent crude settled at $49.67 a barrel on Thursday in London. There is an increasing agreement between Opec, non-Opec

effect of a freeze. “There is the freeze that is official, and there is the freeze that is practical,” Al-Falih said. “Today when you think about it practically, many countries today are at their capacity. Their room for an increase are limited, certainly for the short or medium term.”

13%

Iran output

The percentage crude oil has gained since the Organization of Petroleum Exporting Countries announced it would meet to discuss prices and supply

producers to move to manage oil production as market forces are not enough to correct prices, Opec’s Secretar y-General Mohammed Barkindo told Al Hayat pan-Arab daily on Thursday.

Opec output

PrODuCEr S f rom O pec w i l l meet on the sidelines of an energy-policy group. The meeting of Opec and other producing countries in April ended without agreement in Doha, when Saudi Arabia demanded that Iran be

Saudi arabia’S Energy Minister Khalid al-Falih at the recent 169th Organization of Petroleum Exporting Countries conference BloomBerg News

part of any deal to limit output. Iran had ruled out a ceiling on its production until it recovered the output levels it had before the uS and European union tightened international sanctions on its oil industry in 2012. “A freeze

signifies that everybody is content with where the market is today and they want it to be trending in that direction,” Al-Falih said. “It is trending toward soaking up and absorbing, removing, the inventor y overhang.”

Opec output increased to 33.2 million barrels a day in July, according to data compiled by Bloomberg. The group’s capacity is 36.9 million, with most of that in Saudi Arabia, the world’s largest exporter. That may limit the

IrAn’S production has risen to 3.85 million barrels a day since sanctions were eased in January, Zanganeh said this month, still less than its target for the end of this year of 4 million barrels a day. Opec as a whole has boosted output to record levels since adopting a Saudi-led decision in 2014 to protect the group’s global market share by forcing out higher-cost producers. The International Energy Forum, comprising of 73 countries that account for about 90 percent of the global supply and demand for oil and natural gas, will meet in Algiers from September 26 to 28. “I will participate in this meeting,” Iran’s Zanganeh was cited as saying by the oil ministry’s news service Shana. Zanganeh had not previously committed to attending the meeting, and he didn’t comment on the position Iran will take at the talks. Zanganeh also said he will meet with Opec SecretaryGeneral Mohammed Barkindo “in the near future.” Bloomberg News

China’s power play in Asia emboldened by US politics H

OnG KOnG — uS De fense Secretary Ash Carter warned a few months back that China risked a “great wall of self-isolation” for its actions in the disputed South China Sea. That hasn’t deterred Xi Jinping. Beijing is boosting its military presence in the area unabated, in the face of stepped-up uS patrols and a recent arbitration court ruling that invalidated its claims to most of the waterway. After decades of uS dominance in the western Pacific, Xi’s behavior throws up an increasingly urgent dilemma for America in how to slow China’s military and economic expansionism. The risk now is that troubles afflicting a signature Barack Obamabacked trade deal embolden China to see how much further it can push the world’s biggest economy. regardless of who wins the uS presidential election in november, the mood among a vocal number of American voters is one of isolationism after more than a decade fighting wars thousands of miles away and amid concern about preserving uS jobs. That domestic climate is threatening the uS ratification process for the Trans-Pacific Partnership (TPP), a pact that would cover 40 percent of world commerce and does not include China. republican Party nominee Donald Trump says the TPP will cost uS jobs and Democrat Hillary Clinton has reversed her earlier support for it. “right at the heart of China’s conduct in the East China Sea and the South China Sea over the last few years has been a conviction that the uS doesn’t have the resolve to push back hard against China’s prodding,” said Hugh White, a professor of strategic studies at the Australian national university in Canberra and author of The China Choice. If TPP fails, “it will encourage them to think that America is not willing to pay the costs and risks required to push back against it and that will encourage China to test it.” Trump has raised the prospect of cutting military assistance to

allies, such as Japan and South Korea, and starting a trade war with China. Whether he would or could make good on that is unclear—the checks and balances of Congress might reign him in. But he has found a strong populist rump in the electorate for his views. While Clinton would probably seek to preserve ties with the region, she would need to manage the political noise at home. under Obama, the uS embarked on a military and economic rebalance to Asia, with the policy articulated by then-Secretary of State Clinton in 2011. Aimed at assuring Asia of America’s commitment to the region, China has painted it as a bid to contain it. The policy has had two main pillars—a military buildup in the western Pacific, and uS advocacy for the TPP. While the arbitration court’s July ruling in favor of the Philippines’s challenge to China’s South China Sea claims was a diplomatic setback for Xi, it hasn’t stopped China from militarizing reclaimed reefs, according to Asia Maritime Transparency Initiative photographs that show reinforced hangars that seem designed to house jet fighters. It has also flown bombers over the disputed waters, announced joint naval exercises with russia and Defense Minister Chang Wanquan has called for preparation for a “people’s war at sea.” “China’s expansionist claims in the South China Sea, reiterated in its angry rebuff of the recent arbitral decision, make it clear that the uS faces a crucial test of its reliability in Southeast Asia,” according to a recent article coauthored by Patrick Cronin, director of the Asia-Pacific Security Program at the Center for a new American Security. “The president should offer assurances to allies and partners that coercive moves that undermine the historic legal ruling risk a confrontation with the uS.” China is also seeking to displace uS economic influence amid questions over whether the second plank of the rebalance, the TPP, will

get through the uS Congress. Singapore’s Prime Minister Lee Hsien Loong spoke on his recent visit to Washington of the need for TPP to be ratified: “For America’s friends and partners, ratifying the TPP is a litmus test of your credibility and seriousness of purpose.” “Failure to pass TPP will have an impact,” said Catherine A. novelli, undersecretary of State for Economic Growth, Energy and the Environment. “China is actively working in Asia and has strong relationships with its neighbors and we expect this will continue. TPP provides balance in the region and sets a very high bar for transparent rules and open and fair trade.” China isn’t a member of the TPP, which is being sold as a kind of super trade deal that would not only slash tariffs on goods and services among its 12 members, but would establish shared standards in areas, such as labor and the environment. Participants include the uS, Japan, Australia, Malaysia, Singapore and Vietnam. Obama has vowed to keep pushing the TPP during the lame-duck session of Congress that follows the election. His efforts to get the deal ratified received recent support from a group of senior former republican officials who, exasperated by Trump, said they’d back Clinton’s presidential bid and that they hoped she’d reconsider her TPP position. “Failure to approve it would cede to China the role of defining regional trade rules,” they wrote in an open letter. Beijing has established the $100-billion Asia Infrastructure Investment Bank to complement its “One Belt, One road” initiative of building ports and transport links across Asia to Europe. Xi has touted investment and trade in the region to offset concerns about China’s military ambitions, and pushed an alternate Asia trade pact to the TPP. Still, while China may be able to make short-term capital of any TPP collapse, strategists in Beijing fret any advantage may be frittered away. Bloomberg News/TNS

World

BLOOMberg

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dgar Acebuche made around $32 a week driving a garbage truck and selling old bottles and papers in his Manila shantytown. It wasn’t enough to provide for his two children, help his younger sibling through school and pay for his mother’s hypertension medicine, so he sold drugs. When Acebuche, who dreamed of opening a billiards hall, realized that President Duterte might win the Philippine presidency with his pledge to start a merciless war on drugs, relatives say he stopped dealing. “He left Manila” to lay low, said his cousin Alicia Danao, returning home occasionally to see his kids and wash their clothes. On one visit on July 18, Danao said the police took Acebuche, 42, away. Two hours later they returned with his body. According to the police report, Acebuche “suddenly grabbed” an officer’s gun. Sensing “imminent danger,” the officer shot him. Danao said in an interview in the shantytown in early August that when the police returned Acebuche’s body, one of them told

Asia exports show little recovery sign amid global slump

Saudi exec sees oil-output freeze as ‘positive’

S

‘DUTERTE COURTING POLITICAL RISKS IN DEADLY DRUG WAR’

See “Duterte,” A2

Saturday, August 27, 2016 b2-1

audi arabia’S energy minister said an oil-output freeze would be “positive” if it happens, while ruling out a cut in production.

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TRUST IN THE LORD Dear Lord, happy are we who are giving our time in caregiving. “If you are wondering what God’s plan is in all this, trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit in Him, and He will make your paths straight.”—Proverbs 3: 5-6. We need strength, warm and cheerful attitude to continue caring for clients under our care. Amen! Caregivers, Lori Hogan, Shared by Luisa M. Lacson

history con manila A 1924 Packard Single Six Model 226 used by Emilio Aguinaldo, first Philippine president, is displayed at the ongoing History Con Manila. History Channel celebrities make their appearance at the first-of-its-kind fourday event. Visitors are treated to an epic event that covers a broad range of genres and interests, with dedicated areas for the paranormal/sci-fi, survival and adventure, motoring, history and culture. History Con will run until August 28 at the World Trade Center in Pasay City. NONIE REYES

Manila insists talks with Beijing to be based on arbitration ruling By David Cagahastian

M

@davecaga

alacañang on Friday brushed aside renewed calls in China for the Philippines to abandon the arbitration ruling in its favor, even as President Duterte reiterated that any bilateral negotiations will not go beyond “the four corners” of the ruling. Palace Spokesman Ernesto C. Abella said the new statements, published in the People’s Daily, the official newspaper of the Chinese Communist Party, are mere

PESO exchange rates n US 46.4890

internal propaganda targeted at their own members and do not reflect the Chinese foreign policy. “That’s their local paper. Perhaps, it’s better if we understand that they have statements meant for people outside and those meant for within. That statement, which you’re referring to, is meant for those within,” Abella said in a news conference in Malacañang. The People’s Daily reiterated China’s earlier reported stand against any bilateral See “Manila,” A2

ABELLA: “That’s their local paper. Perhaps, it’s better if we understand that they have statements meant for people outside and those meant for within. That statement, which you’re referring to, is meant for those within.”

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igns of life returning to Asian trade have stirred up some optimism of a recovery, but a closer look at the data coming out of the region indicates the malaise is far from over. While export figures from Malaysia and Thailand showed surprising strength in June, trade continues to contract across most of Asia in the face of sluggish global growth, lower commodity prices and weaker demand from China. “There is hardly any room for cheer,” Taimur Baig, a Singapore-based Deutsche Bank AG economist, said by email. “Substantial recoveries in price and demand, both for commodities and electronics/machinery, are necessary for regional exports to return to trend levels, an outcome that is very unlikely.” Malaysian exports rose 3.4 percent in June from a year earlier, while merchandise shipments from Thailand gained 1.9 percent. That’s in contrast to elsewhere in the region, where exports are still posting declines of more than 10 percent. Singapore’s nonoil exports—the most commonly used gauge for trade performance—dropped 10.6 percent in July from a year earlier. Japan said last week shipments fell 14 percent in the period, the biggest drop since 2009, while in the Philippines, exports declined 11.4 percent in June. Customs data for Thailand released on Friday showed a 4.4-percent contraction in exports in July. See “Exports,” A2

n japan 0.4625 n UK 61.3329 n HK 5.9948 n CHINA 6.9794 n singapore 34.3625 n australia 35.4014 n EU 52.4721 n SAUDI arabia 12.4007

Source: BSP (26 August 2016 )


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