BusinessMirror July 28, 2019

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ROTARY CLUB OF MANILA JOURNALISM AWARDS

2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business n

Sunday, July 28, 2019 Vol. 14 No. 291

2018 EJAP JOURNALISM AWARDS

BUSINESS NEWS SOURCE OF THE YEAR

DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS PHILIPPINE STATISTICS AUTHORITY

DATA CHAMPION

P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK

IT’S NATIONAL DISASTER RESILIENCE MONTH, AND IT’S TIME TO SHINE A LIGHT ON INITIATIVES TO RENDER CHILDREN LESS AT RISK FROM DISASTERS

Shielding the most vulnerable

IN this November 13, 2013, file photo, an aerial view shows the destruction left by Supertyphoon Yolanda (international code name Haiyan) in the coastal town of Tanawan, a village a few miles south of Tacloban. Haiyan left more than 7,300 people dead or missing, flattened entire villages, swept ships inland and displaced more than 5 million people. AP/WALLY SANTANA

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By Estrella Torres

ISASTERS leave children facing risks of injury, even death, and diseases due to the breakdown of services such as clean water and sanitation. Globally, there are 535 million children who live in countries prone to disasters, according to the World Risk Report of 2018. It

ranked the Philippines the third most vulnerable to suffer from disasters, next to island nations of Vanuatu and Tonga.

The report takes into account a country’s exposure to natural hazards and its society’s vulnerability. The Philippines fares low in both since it does not have a strong capacity to cope with the negative consequences of natural disasters and a huge segment of population live in disaster-prone areas. Supertyphoon Yolanda (international code name Haiyan), which struck the Visayan provinces in 2013, has taught the Philippines bitter lessons—mainly, how vital

it is to build resilience to reduce people’s vulnerability to disasters. More than 7,000 people died, including children, as a result of Yolanda, billed as the strongest cyclone to hit land. Prior to Yolanda, more than 11 million school children have been affected by major disasters from 2007 to 2012, based on figures from the Department of Education (DepEd). In 2018, at least 43,810 schools bore the brunt of natural hazards such as harsh typhoons,

while 21,949 other schools experienced human-induced hazards.

Partnership

RECOGNIZING the need to build disaster resilience among the young, Save the Children Philippines has partnered with DepEd and Prudence Foundation for the implementation of the three-year Education Safe from Disasters. This is to put in place and automate a management information system to improve disaster management in schools.

The child-rights group also joins the department’s weeklong fair as part of the observance of the National Disaster Resilience Month every July to highlight innovative programs to build disaster resilience in public schools. The project, launched in January, aims to integrate safety and disaster resiliency in the construction and retrofitting of school buildings. The program will be pilot-tested in 16 schools divisions in Metro Manila. Continued on A2

Central bankers playing a dangerous game with asset prices By Enda Curran & Rich Miller

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Bloomberg News

HE world’s central banks are in danger of storing up problems for later by taking action to ensure the economic expansion stays on track.

In cutting already low interest rates to bolster a sagging global economy, monetary-policy makers risk fueling asset bubbles that may eventually burst and propping up zombie companies that could keep dragging down growth. They’re also encouraging a dangerous buildup in leverage in a world where total debt is already approaching $250

trillion. Fed rate cuts “will incite undesired risk taking by borrowers and deepen the eventual next recession,” Steven Ricchiuto, US chief economist at Mizuho Securities USA Llc., said in a July 23 note. Just this week, UBS Group AG Chief Executive Officer Sergio Ermotti warned looser monetary

PESO EXCHANGE RATES n US 51.1070

policy ran the “risk of creating an asset bubble.” Even still, central banks are betting the near-term benefits of countering a global slowdown and trade war jitters outweigh the longer-term costs of yet more easy money. Federal Reserve Chairman Jerome Powell and European Central Bank (ECB) President Mario Draghi have signaled that fresh easing is on the way while a host of emerging economies have already cut borrowing costs. Former Fed Chairman Alan Greenspan endorsed the idea that the US central bank should be open to an insurance interest-rate cut. Another reason policy-makers at the Fed and ECB are poised to push ahead is their confidence

that lower rates will not lead to an outbreak of unwanted inflation. Indeed, they’ve signaled that they’d welcome a rise in price pressures to help lift inflation rates they reckon are too low. The ECB meets Thursday and the Fed next week. Powell himself has suggested that the last two US economic expansions ended not because inflation got too high, but because asset markets got too bubbly. In 2000, it was stock prices, especially those of high technology companies. In 2007, it was house prices. With US stock prices already flirting with record highs and about $13 trillion of bonds yielding negative rates, there’s a concern that history may repeat itself.

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he Fed is gearing up to cut rates when growth is around potential, unemployment low, and trade uncertainty threatens to blunt the impact. When the downturn does eventually come, cuts that were seen as needed ‘insurance’ at the time could be viewed in a different light. Policy space can’t be used twice.” TOM ORLIK

Chief economist at Bloomberg Economics

Continued on A2

n JAPAN 0.4705 n UK 63.6742 n HK 6.5388 n CHINA 7.4355 n SINGAPORE 37.3835 n AUSTRALIA 35.5194 n EU 56.9792 n SAUDI ARABIA 13.6274

Source: BSP (July 26, 2019 )


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