BusinessMirror - November 1, 2014 by BusinessMirror

Dramatic rise in Ebola cases

EBOLA EXPERT SAYS CHINA AT RISK

The World Health Organization says the number of reported Ebola cases has surpassed 13,700, a jump of more than 30 percent since the last numbers were released earlier

15000

Cases

Deaths

13,700

12000

9000

6000

3000

Aug Sep Sep Sep Sep Sep Sep Sep Sep Oct Oct Oct Oct Oct Oct Oct Oct

29 5 6 13 14 17 21 23 28 1 5 7 12 17 19 23 29

Source: WHO

scientist who helped to discover the Ebola virus says he is concerned that the disease could spread to China. Peter Piot, who is director of the London School of Hygiene and Tropical Medicine, said on Thursday the disease could spread, given the large numbers of Chinese workers traveling to and from Africa. More than 8,600 people have entered China's southern Guangdong province from Ebolaaffected areas since August, and there are dozens of flights a month. Piot is appealing to Japan for humanitarian assistance. Japan has pledged $40 million so far to help combat the Ebola outbreak, but Piot said more is needed. AP

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Iraqi Kurdish fighters enter Kobani

RBIL, Iraq—A small unit of Iraqi Kurdish fighters entered the besieged Syrian town of Kobani on Thursday to meet with Syrian Kurds battling militants from the Islamic State and to make preparations for the arrival of a larger Iraqi Kurd force, according to Kurdish officials in Iraq and witnesses on the ground near Kobani. organization and has fought an intermittent 30-year conflict over the formation of a Kurdish homeland. Turkey previously had refused to allow PKK fighters to cross from Turkey into Syria and had warned the United States not to supply weapons to the YPG, an admonition the US ignored within hours when it dropped bundles of ammunition, small arms and food to the Kobani defenders nearly two weeks ago. The US also has undertaken a fierce aerial campaign to assist the YPG, striking Islamic State targets near Kobani more than 180 times, including 10 raids on Thursday that hit seven Islamic State fighting positions, five buildings the militants’ had occupied, and two Islamic State units. More than 800 people have died in the 40 days of combat since the

to the Sunnis and Kurds by new Prime Minister Haidar al-Abadi. Dempsey said the US strategy’s first focus is on Iraqi government and Kurdish regional fighters. But the tribes could be an important complement to those. “That’s what we’re now beginning to explore,” he said. “We’ve got a program in place where we’re beginning to restore some offensive capability and mindset to the Iraqi security forces. We need to think about how to do that with the tribes.” Asked about progress in the administration’s project to train members of the Free Syrian Army as a moderate opposition force, Dempsey said the process of recruiting and vetting candidate fighters has not yet begun. Some have questioned the viability of that project, for which Congress has approved spending $500 million to train up to 5,000 fighters. President Barack Obama’s special envoy for the coalition opposing the Islamic State group, retired Marine Gen. John Allen, said in an interview on Wednesday that US support for the Free Syrian Army will ultimately achieve a “political outcome” in Damascus that “does not include” Syrian President Bashar al-Assad. Allen told the Al Arabiya Arabic news channel that the goal is to build the Free Syrian Army into a force with “battlefield credibility” to “deal with” IS and to defend itself again Assad regime forces, according to a State Department transcript of the interview. AP

AMNESTY: LIBYAN MILITIAS COMMITTING WAR CRIMES

AIRO—Amnesty International said rival militias and armed groups in Western Libya are committing “mounting war crimes” with impunity. In a new report released on Thursday, it accused fighters of having complete disregard for civilian lives, saying militants have fired Grad rockets and artillery into civilian neighborhoods. “In today’s Libya the rule of the gun has taken hold. Armed groups and militias are running amok, launching indiscriminate attacks in civilian areas and committing widespread abuses, including war crimes, with complete impunity,” Deputy Director for the Middle East and North Africa Hassiba Hadj Sahraoui said in a statement. Libya is mired in its worst turmoil since the ouster of Muammar Qaddafi in 2011, with the country deeply fractured and having two rival governments. The fighting is part of a nationwide power struggle between Islamist-backed militias, which have seized control of most of Tripoli, including its international airport, and their opponents, which back an internationally-recognized government based in the country’s far east. The report said members of the Islamist-backed Libyan Dawn coalition and their opponents in the Zintan-Warshafana coalition are among the armed groups that have committed “gross abuses of human rights.” AP

NGUYEN VAN HAI, one of Vietnam’s most prominent dissidents, speaks to the Associated Press on Thursday in Los Angeles after being released from prison and flown to the United States. AP/RICHARD VOGEL

key on Tuesday, to enter the town. Kurdish officials have been reluctant to detail exactly when the larger force might enter because of safety concerns. The main border crossings into Kobani are well within range of Islamic State mortars and heavy machine guns. In a statement released on Twitter, Kurdish President Massoud Barzani said that he had offered to send many more fighters to assist the town but that the YPG defenders requested only units that could operate heavy weapons.

Kobani’s defenders said they are badly outmatched by the Islamic State, which captured huge stockpiles of heavy weapons, including tanks, artillery, mortars and armored vehicles, when its forces overran Iraqi and Syrian military bases in recent months. Barzani said the Kobani leaders “said they don’t need a fighting force, only a support artillery unit.” “The deployment of #peshmerga to #Kobane was impossible without Turkish approval and US cooperation,” he tweeted. MCT

Pentagon considering empowering Sunni tribes

ASHINGTON—The Pentagon is considering ways to bring the Sunni Arab tribes of Iraq’s Anbar province more fully into the battle against the Islamic State (IS) group, the top US military officer said on Thursday. Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, told reporters that expanding US train-andadvise efforts to include the tribes is one of three key elements of a strategy designed to roll back IS fighters in northern and western Iraq. The other elements are advising and assisting Iraqi government troops and creating so-called national guard units as a sort of quasi-military force that must first gain legal approval from the Iraqi government. “You need all three of those eventually,” Dempsey said. However, a condition for training and advising the tribes would be the willingness of the Iraqi government to arm them, he said. Speaking alongside Dempsey, Defense Secretary Chuck Hagel agreed that the tribes are an important component of the strategy. “The Sunni tribes are going to have to be part of this,” Hagel said. Enlisting the help of Anbar’s tribes was critical to the success of US efforts to stabilize Iraq in the latter stages of the Iraq war in 2007 to 2008. Since that period, the tribal leaders have grown disillusioned with the Shiite-dominated government in Baghdad, although Washington has staked its hopes on a more inclusive approach

DISSIDENT FORCED TO LEAVE VIETNAM

AN Iraqi Kurdish peshmerga fighter walks at a staging area on the outskirts of Suruc, near the Turkey-Syria border, across from the Syrian town of Kobani, on Thursday. AP/VADIM GHIRDA

better equipped Islamic State fighters began their assault on Kobani. More than 200,000 have fled the fighting, most of them into Turkey. “A small unit entered Kobani to meet with its defenders on the best places to set up their equipment and to determine the best way for the unit to enter the town,” a peshmerga official in Iraq, Secretary-General Jabar Yawar, said on Thursday. “They will report to the peshmerga commanders with their recommendations.” Yawar said no timetable has been set for the group, which flew to Tur-

PALESTINIAN youths run during clashes with Israeli border police after Moatez Higazi was shot in east Jerusalem on October 30. Israeli police shot and killed Higazi, who was suspected of trying to kill a hard-line Jewish activist in Jerusalem, an incident that quickly sparked clashes between masked stone throwers and Israeli riot police. AP/MAHMOUD ILLEAN

ISRAEL LIMITS PRAYERS AT MOSQUE AFTER SHOOTING OF JEWISH ACTIVIST

E RU S A L E M —Te n s i o n s over Jerusalem’s most hotly contested holy site flared on Thursday after a prominent rightist campaigner for Jewish prayer there was shot in an apparent assassination attempt, and police tracked down and killed an Arab they said was the attacker. American-born Yehuda Glick, 48, who led efforts to allow Jews to pray on the plaza known to Israelis as the Temple M ount, the site of Al-Aqsa mosque, was reported in serious but stable condition after he was shot multiple times on Wednesday night as he left a gathering of activists. The shooter sped away on a motorcycle. Early Thursday, a police counterterrorism unit shot and killed Moataz Higazi, 32, in the mixed Jewish-Arab neighborhood of Abu Tor, which straddles the old border between east and west Jerusalem. Higazi worked in a restaurant in the Menachem Begin Heritage Center in west Jerusalem, where

Glick had attended the meeting. Moria Halamish, who was with Glick as he left the meeting, told Israel Radio that the shooter approached him outside the center, addressed him by name and said in Arabic-accented Hebrew, “I’m sorry I have to do this, but you really hurt me,” before opening fi re. Micky Rosenfeld, a police spokesman, said that Higazi, a former prisoner who had served more than a decade in Israeli jails, fi red on officers who had surrounded his house hours after the shooting. Relatives and neighbors accused the police of an execution-style killing, showing reporters multiple bullet holes on a rooftop where the suspect’s body was found. The spike of violence raised fears of a broader eruption of unrest triggered by mounting tensions surrounding the compound in Jerusalem’s Old City. It is revered by Jews as the site of the fi rst and second Jewish

temples and by Muslims as their third holiest shrine, the place toward which the Prophet Muhammad prayed before God instructed him to turn toward Mecca. There have been increased clashes at the compound between Muslim youths and police in recent weeks, triggered by alarm over increased visits by right-wing Jewish activists intent on pressing the Israeli authorities to allow Jews to pray at the site. Under arrangements established after Israel captured the area in the 1967 Six-Day War, the Al-Aqsa mosque plaza is reserved solely for Muslim worship, though Israelis and foreigners are allowed to visit. In response to the attack on Glick, Israeli authorities banned all entry to the compound for the first time in 14 years, triggering a sharp protest from Palestinian Authority President Mahmoud Abbas, who called the Muslim and Christian sacred sites in Jerusalem a “red line.” MCT

OS ANGELES—One of Vietnam’s most prominent dissidents said he was asked to sign a form seeking a pardon for spreading “propaganda against the state” before his release from prison last week, then forced onto a US-bound flight with just the clothes on his body. Nguyen Van Hai, who blogged under the name Dieu Cay, told the Associated Press on Thursday that he refused to sign the document because he didn’t believe he had committed a crime. He said authorities gave him no option but to leave for the United States. “They rushed me directly from the jail to [Hanoi’s] Noi Bai International Airport and escorted me onto the airplane. They didn’t allow me to see my family before my departure. So we can’t say they released me. If they had given me back my freedom, I could have gone back home instead of going directly to the airport without seeing my family and my friends.” Vietnam’s communist government previously said Hai was released for humanitarian reasons. A State Department spokeswoman said Hai had decided himself to travel to the United States. Hai, 62, said he wasn’t aware of US involvement in his release, other than that the Obama administration was appealing for the release of prisoners of conscience in Vietnam. Washington has been calling on Vietnam to improve its human rights record to smooth the way for stronger military and economic relations. The US, which has a stated commitment to supporting democracy and human rights around the world, wants closer ties with Vietnam as it looks to ramp up America’s presence in Southeast Asia and counter an assertive China. Washington has been intimately involved in negotiations around the early release of other dissidents, but US officials rarely speak about the details publicly. Three dissidents were granted early release in April. One of them, Cu Huy Ha Vu, went directly from jail to the United States accompanied by a US diplomat posted at the embassy in Hanoi. Hai’s release on October 21 came on the same day Tom Malinowski, the US assistant secretary of state for human rights, visited Hanoi. Hai said Hanoi should be congratulated for releasing several political prisoners this year, but questioned its motives. “I think Hanoi should be encouraged to release political dissidents, but it’s unacceptable when they use political prisoners as bargaining chips in diplomatic negotiations,” Hai said. “I hope that all governments [negotiating with Vietnam] put democracy and other civil rights as conditions under which the country should respect and comply with,” he added. Hai was the co-founder of the Club for Free Journalists, which was established to promote independent journalism. He was first detained in 2007 as a result of his political views. His 12-year prison term began in September 2012, and he later went on two hunger strikes against being held under solitary confinement. He said he shuffled among 11 prisons, where he saw overcrowding, a lack of clean water and poor health care. He said he wasn’t allowed visitors or access to media. AP

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ORD Jesus, there are times when we feel like giving up, but we remember that Your Father is teaching us to trust in His planned timing. We try not to be in a hurry. We try not to be impatient. We don’t force doors to open. We don’t try to make things happen in our own strength. We let go and do it His way! God has a timetable for all our heart’s desires. He makes all things beautiful in His time! Amen. LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

ACCORDING to Arch. Frank Gehry, “This is a very unusual building.”

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HE’S HOME BUT CAVS LOSE By Tom Withers The Associated Press

with his arms outstretched wearing a jersey with “Cleveland” where his name would normally be stitched—drew fans who posed for photos the same way they did when James was here last. Carmelo Anthony scored 25 points and buried a jumper with James in his face with 25 seconds left to give the Knicks a 92-87 lead. Kyrie Irving scored 22 and Kevin Love added 19 points and 14 rebounds for the Cavs, who have some work to do before they can start thinking about any titles. In Los Angeles Blake Griffin scored 23 points, making two free throws with five seconds left, Chris Paul added 22 to help the Clippers beat Oklahoma City, 93-90, in their season opener to usher in a new era under owner Steve Ballmer. Los Angeles hardly resembled its new ad campaign of “Be Relentless” early on, when the Thunder scored the game’s first eight points as Ballmer cupped his hands and yelled to his team from his baseline seat near their bench. He paid a record $2 billion to buy the team after 33-year owner Donald Sterling was banned for life by the NBA for racist remarks. The Thunder sent the Clippers packing in the second round of the playoffs last spring, shortly after the Sterling scandal erupted. Already without injured Kevin Durant, the Thunder lost Russell Westbrook to a hand injury in the second quarter. Perry Jones scored a careerhigh 32 points, making nine-of-11 free throws. The Thunder are 0-2, having dropped their opener a night earlier at Portland. Dirk Nowitzki scored 21 points and Dallas celebrated the return of two key pieces from the franchise’s only championship team in a home-opening 120-102 victory over Utah in Dallas. Tyson Chandler, the center and emotional leader when Dallas beat Miami for the title three years ago, had 13 points and six rebounds in his first home game since leaving in free agency not long after celebrating the crown. JJ Barea, the diminutive guard and 2011 NBA Finals spark who was reacquired a day earlier, got a standing ovation when he came off the bench late in the first quarter. He had four points. Derrick Favors had 17 points and 11 rebounds for the Jazz, who fell behind by 30 points in the first half of a tough back-to-back after an opening loss to Houston at home. In Orlando John Wall had 30 points and 12 assists, helping Washington hold off a late surge to beat the Magic, 105-98. Marcin Gortat added 20 points and 12 rebounds. All five starters scored in double figures as Washington earned its fifth straight victory over its division rival. The Magic trailed by three at the half, only to be outscored 28-15 in the third quarter. Orlando recovered in the fourth and rallied to trim what had been a 17-point Washington lead to two with less than a minute to play. But Wall got free for a driving lay-up to help preserve the victory. Nik Vucevic led the Magic with 23 points and 12 rebounds. Orlando finished with 18 turnovers, matching its total from its season opener. Thaddeus Young scored 19 points and hit a big three-pointer with 90 seconds remaining to lift Minnesota over Detroit, 97-91.

UNFORTUNATELY FOR CLEVELAND, THE NIGHT’S BEST MOMENTS CAME BEFORE THE GAME, AS LEBRON JAMES PLAYED POORLY AND THE CAVALIERS WERE BEATEN, 95-90, BY THE KNICKS. JAMES HAD EIGHT TURNOVERS, MISSED 10 SHOTS AND WAS NOT IN SYNC WITH HIS NEW TEAMMATES.

THE Mavericks dancers perform with masks during the first half of the DallasUtah game on Thursday. AP

Nikola Pekovic had 17 points and 10 rebounds, and Ricky Rubio added 11 points, eight assists and seven boards for the Timberwolves in their home opener. Caron Butler scored 24 points and D.J. Augustin had 20 points and six assists for the Pistons, who have opened the season with two straight losses on the road under first-year coach Stan Van Gundy. Andre Drummond had 11 points and 12 rebounds, but he was limited in the second half by foul trouble and the Timberwolves held off a late charge from Butler and the Pistons.

AUSTRIAN BEATS HOUR RECORD AIGLE, Switzerland—Austrian rider Matthias Brandle broke cycling’s historic hour record on Thursday after covering a distance of 51.852 kilometers at the UCI Velodrome. The 24-year-old Brandle, the Austrian time-trial champion, eclipsed Jens Voigt’s mark of 51.1 kilometers, improving his record by 742 meters. “In the first few minutes I just wanted to get on with it but then it became more complicated,” Brandle said. “Between 30 and 50 minutes was the hardest and I asked myself ‘why did I choose to do this kind of event?’ Then in the last 10 minutes, it’s the mental that takes over and with the amazing crowd behind me it was easier. Now I am really happy.” The UCI first announced that Brandle had covered 51.850 kilometers

but the rider’s team, IAM Cycling, later said the distance had been revised to 51.852 kilometers before cycling’s governing body confirmed the record. Voigt achieved the feat on September 18, one day after his 43rd birthday. He took the record away from Czech cyclist Ondrej Sosenka, who in 2005 clocked 49.7 kilometers. The fastest time was previously held by cycling greats Fausto Coppi, Jacques Anquetil or Eddy Merckx. The UCI changed the rules of the hour record this year, authorizing competitors to ride bikes that can be used for endurance track events. “It meant I was able to use almost the same bike as I used [for the time trial] at the road world championships,” Brandle said. “It’s a really good change.”

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rowth in the supply of money in the financial system, also called M3 by economists, slowed significantly in September to only 16.2 percent from 18.3 percent in August, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

FED ACTIONS CITED AS U.S. ECONOMY GREW 3.5% IN Q3

2007, the building permit was granted, and in March 2008, construction began. A model of the Louis Vuitton Foundation was unveiled at the Centre Georges Pompidou during the exhibition Masterpieces in 2011. Metal frames were soon attached to the “iceberg.” The last stone was laid on December 18, 2013, which was followed by a reception at the building on February 28. Finally, the Louis Vuitton Foundation was opened to the public just this October 27, following the development of final landscaping which took place during the spring. Said Arnault: “We wanted to give Paris an exceptional place for art and culture that also challenges and evokes emotion. By giving Frank Gehry [this opportunity], we have achieved an icon of the 21st century.” Frank Gehry’s building, which reveals forms heretofore never imagined, was brainstormed to reflect the Louis Vuitton Foundation’s uniqueness, creativity and innovation. Gehry chose the transparent lightness of glass as his medium in an architectural endgame that combined vision with the daring innovations offered by cutting-edge technology. From the invention of curved millimeter forms to 3,600 panels of 12 glass “sails,” the structure is the product of unique design processes. To achieve its first sketch, Gehry looked to inspiration from the lightness of glass and garden architecture of the late 19th century. The architect then produced many models in wood, plastic and aluminum, playing with lines and forms, and creating movement in the process. The choice of materials was obvious. Glass envelopes would cover the body of the building. These assembling blocks now compose the “iceberg,” giving it volume and momentum. The final model was then scanned to provide a digital model of the project which saw completion and is now open to the public. ■

Sports LEVELAND—Carried onto the floor by an emotional ovation building for years, LeBron James is back where he began. He’s home. Introduced to a deafening roar from Cleveland fans, James was welcomed back on Thursday night by a city desperate to end a championship drought that’s about to turn 50 years old. James came back to try and end it, and his journey is under way. At 8:08 p.m. all was right in Cleveland again. That’s when James, the last starter announced, walked onto the floor in a Cavs uniform for a regularseason game for the first time in four years. Nearly four months since proclaiming “I’m coming home” and shifting the NBA’s balance of power, James is again playing in front of family, friends and the Cleveland fans who had their hearts broken when he left for Miami four years ago. This is a homecoming like no other. “None of us should take this moment for granted,” a relaxed James said following Cleveland’s morning shootaround. “This is probably one of the biggest sporting events ever. I don’t feel it, but I know it is.” A crowd of 20,000-plus fans—with some paying as much as $5,000 for a ticket—packed the venue, which was updated during the off-season with a gigantic, fire-spewing scoreboard to welcome home James. Unfortunately for Cleveland, the night’s best moments came before the game, as James played poorly and the Cavs were beaten, 95-90, by the New York Knicks. James had eight turnovers, missed 10 shots and was not in sync with his new teammates. “I’m glad it’s over,” James said. Before taking the floor, James huddled his teammates in a hallway and told them that “tonight is special.” He then gave a playful tap to owner Dan Gilbert’s son, Nick, before walking onto the court that was his for seven seasons. The pregame festivities ended with James going to midcourt and performing his “chalk toss” pregame ritual with fans tossing paper confetti along with him. James, who has won National Basketball Association (NBA) titles and Olympic gold medals, knew this season opener is a little more special. “I understand how much I mean to this team, to this franchise, to this city and to this state,” he said. “It’s a different feeling, but I’m still as calm and excited at the same time, because it’s the first game of the season.” In the hours leading up to tip-off, thousands of fans gathered in the streets outside the arena. This was a party four years in the making. Across the street from the stadium, a huge banner of James was unveiled in the same spot where one hung during his first seven seasons with the Cavs. The spot became a symbol of civic pride until that night in July 2010, when James announced he was leaving for Miami. In the hours after his decision, some angry fans burned his jersey and others hurled rocks at a banner that would be removed a few days later. On Thursday the new banner—showing James

See “Money-supply,” A2

HE’S HOME, BUT CAVs LOSE

27.3%

The deceleration capped seven months of carefully calculated monetary-policy adjustments designed to ensure against unwarranted surges in inflation, and by this measure send a very clear signal that target local output growth, measured as the gross domestic product (GDP), averaging 7 percent this year, is attained. According to the BSP, the M3 growth of only 16.2 percent in September was the slowest the monetary aggregate has measured since this grew by 15.8 percent in May 2013. In absolute terms, money supply totaled P7.2 trillion in September, some P1 trillion lower than the year-ago aggregate.

WHATEVER YOU DO, PARIS CAN DO BETTER: THE LOUIS VUITTON FOUNDATION HE success of (the luxury goods conglomerate) LVMH is based on a strategy that combines timelessness and extreme modernity to create its products. I hope that the same spirit lives on in this foundation,” said Bernard Arnault, billionaire CEO of LVMH Louis Vuitton during the creation of its corporate foundation. The Louis Vuitton Foundation is not merely a building. It is a private cultural initiative with the aim to promote and support contemporary art to a wider French and international public. Began in 2006, it is part of a program of patronage of art and culture developed by the group for over 20 years. As for the structure designed by American architect Frank Gehry, the Louis Vuitton Foundation parlays a new cultural adventure aside from enshrining a site dedicated to contemporary art. Its mission is collection and programming rooted in the history of artistic movements of the 20th and 21st centuries. In the words of Arnault, it is “a new space open for dialogue with a wider audience, and offers artists and intellectuals a platform of discussion and reflection.” The development of the foundation took place over the course of 14 years. In 2001 the idea of a collaborative project was launched after Arnault visited Frank Gehry’s Guggenheim Museum in Bilbao, Spain. In October 2006 the birth of Louis Vuitton Foundation was announced in the presence of Renaud Donnedieu de Vabres, then-French minister of culture and communication, and Bertrand Delanoë, then-mayor of Paris. Three months later an agreement to occupy 1 hectare of land on public domain at the edge of the Jardin d’Acclimation in the Bois de Boulogne was reached with the city of Paris. In August

orth Korea is always on guard against outside influences, but now that it perceives the Ebola virus to be a threat, its anxiety has reached a new level. North Korean officials say they will quarantine foreigners for 21 days over fears of the spread of the deadly disease. An announcement distributed on Thursday to foreign diplomatic missions in Pyongyang said that, regardless of country or region of origin, all foreigners will be quarantined under medical observation. AP

Money-supply growth in Sept slowest in 16 months at 16.2%

INSIDE

The unit entering Kobani consisted of about 10 Iraqi Kurds, officials here said; the remainder of the force, believed to number about 150, has assembled at a Turkish military base near the border with Syria and will enter Kobani after the scouting unit briefs it on conditions in the besieged town, witnesses near Kobani said. Turkey, under pressure from the United States, granted permission for the Iraqi Kurds to travel through Turkey with heavy weapons and ammunition, under the assumption that the Iraqi Kurds will operate the equipment. Turkey considers the local fighters, known as the People’s Protection Units, or the YPG by its Kurdish acronym, to be aligned with the Kurdistan Workers Party, or PKK, which Turkey has designated a terrorist

N. KOREA TO QUARANTINE FOREIGNERS OVER EBOLA

A poll asks Americans if airlines should block civilian air travel in and out of Ebola outbreak countries in West Africa

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In São Paolo Brazilian cycling federation says it has suspended national road-race champion Marcia Fernandes for two years for doping, virtually ending her chances of competing in the 2016 Rio Olympics. The federation says the 23-year-old Fernandes, who’s also a member of Spain’s Bizkaia-Durango cycling team, tested positive for EPO at the Brazilian championships in June. Also suspended for failing doping tests at the event were Brazil’s under-23 national road-race champion Nayara Gomes Ramos, and two other cyclers, Juliana Jacobs Renner and Patrick Gabriel Oyakaua. The federation said on Thursday that none of the athletes requested to have their “B’’ samples tested. AP

sports MATTHIAS BRANDLE covers 51.852 kilometers. AP

he US economy powered its way to a solid annual growth rate of 3.5 percent from July through September, outpacing most of the developed world and appearing on track to extend its momentum through this year and beyond. The result isn’t a fluke. It turns out the world’s biggest economy did a lot of things right after the Great Recession that set it apart from other major nations. In the view of many economists, those key decisions, particularly by the Federal Reserve (the Fed), appear to be paying off now. An improving economy led the Fed on Wednesday to end its stimulative bond-buying program. Launched during the 2008 financial crisis, it was an unprecedented and aggressive effort to revive a dormant economy by buying trillions in bonds to reduce long-term interest rates. Doug Handler, chief US economist at IHS Global Insight, credited the Fed and its bond purchases with helping pull the country out of the worst downturn since the 1930s. “Its greatest impact was instilling confidence in consumers and the business community that Fed officials were determined to do everything they could to stimulate growth,” Handler said. “To know you have the Fed pulling for you instills confidence.” Thursday’s government report on the gross domestic product Continued on A8

PESO exchange rates n US 44.8760 n japan 0.4108

CONTEMPLATING ETERNITY A relative leans on a multilevel crypts to watch over a worker (not shown in photo) sprucing up the crypt of her loved one at a public cemetery in Parañaque City on Thursday. Filipinos troop to cemeteries around the country to honor the departed in the annual tradition known as All Souls’ Day. AP/Bullit Marquez

Search on for 2014 Deped-Bsp best finance educators N ominations to the Department of Education (DepEd)-Bangko Sentral ng Pilipinas (BSP) awards program for the best finance educators in public elementary schools may now be submitted to BSP Manila or at any BSP regional office or branches. The program aims to promote saving as a habit and money management as a discipline among schoolchildren. Now on its third year, the search for the 2014 GURO ng PAG-ASA was launched in October when DepEd Secretary Br. Ar-

min A. Luistro FSC issued DepEd Memorandum No. 108 s. 2014 which includes the guidelines and nomination forms for the search. Three national winners will be named 2014 GURO NG PAG-ASA (Gantimpala para sa Ulirang Pagtuturo ng PAG-iimpok at Araling PanSAlapi) and will receive a cash prize of one hundred thousand pesos each (P100,000.00). They are the outstanding teachers who have integrated financial lessons developed by DepEd and the BSP in three subjects: Edukasyon sa

Pagpapakatao (EsP), Edukasyong Pantahanan at Pangkabuhayan (EPP), and Araling Panlipunan (AP). The schools they represent will also receive a brand new computer with printer and an LCD projector with screen. Regiona finalists will receive P50,000.00 each. Meanwhile, the winner of the Bida sa Pag-iimpok at Pangkabuhayan (BSP) Award will receive a special prize. Requests for more information may be sent to the Corporate Affairs Office of the BSP at 7087140 or through email at rgarcia@bsp.gov.ph.

n UK 71.8106 n HK 5.7867 n CHINA 7.3376 n singapore 35.1362 n australia 39.5453 n EU 56.5976 n SAUDI arabia 11.9625 Source: BSP (31 October 2014)

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GSIS looks to sell around 100 paintings as bond yields slump Continued from A8

Thursday. Amundi is underweight Philippine bonds and the peso this quarter, he said. The Philippine economy has expanded by more than 6 percent in all but one of the 10 quarters through June, official data show. The growing affluence in the country makes it a good time to sell the paintings, Vergara said. Vergara said he aims to raise the portion of the portfolio invested in equities from around 17 percent to 20 percent to take advantage of the local stock market’s strong performance. The benchmark share gauge has surged 22 percent this year.

The country’s stocks are volatile though, swinging from a 44-percent loss in 2012 to a 1.5-percent increase last year. “We will probably do something from the middle of next year to go out and cast a wider net to see who’s doing well,” and allocate money to them, Vergara said. The amount of assets invested locally will be maintained at 99 percent, he said. Bangko Sentral ng Pilipinas raised its benchmark interest rate twice this year, in July and September, to 4 percent and the monetary authority will increase it to 4.25 percent by the end of 2015, according to the median estimate

Budget. . . continued from a8

by opposition lawmakers that the budget bill was railroaded by House majority members to preempt further deliberations on the controversial last-minute errata submitted by the Department of Budget and Management, saying this was the version of the minority. “That’s what they are saying. But the proposed budget, if you look at it carefully, is a budget where we showed where the money is going and where or what are the programs,” Lacierda said. He insisted that the 2015 budget was “designed to ensure the continuation of social services to our countrymen and also to make measures, improve the current infrastructure that we have, to make sure that we will have a better climate for investment, and also that those who are the poorest of the poor will not be left behind.” “That’s our main goal, and we will continue to do so, despite all this noise from the Makabayan bloc,” Lacierda added.

of analysts surveyed by Bloomberg. Inflation reached 4.9 percent in July and August, the fastest in almost four years, before easing to 4.4 percent last month. “The fundamentals still point to lower interest rates,” Reynaldo Montalbo, head of treasury at First Metro Investment Corp. in Manila, said in an October 29 interview. “Returns have room to fall. That’s why, for investors, government securities are not really an attractive investment alternative.” A weakening peso has also dimmed the allure of peso bonds. The Philippine currency has been the worst performer among South-

east Asian emerging markets this year, declining 1 percent. That compares with gains of 0.9 percent and 0.7 percent for the Thai baht and Indonesia’s rupiah. Generating sufficient returns is becoming more important as the average age of GSIS members rises closer to retirement age and the proportion of Filipinos supporting older family members declines, Vergara said. “You’ll die of high blood pressure if you worry too much about what one year’s return is,” he said. “Markets do not generate returns in a predictable smooth manner. The idea is by putting together different asset classes you smooth that return.” Bloomberg News

Emerging Asia. . . continued from a8 are rich families, where husbands and wives often quarrel and children are addicted to drugs.” “I was not under much pressure to earn a living as many others since my parents can pay for my living if I don’t work,”said Nguyen Phuong Linh, a fresh graduate, who was distributing brochures to passersby outside the Hanoi super market she works in. “But life would be better if I have a job with good pay.”

Malaysia

“Money can buy lots of happiness for me because I am very materialistic,” businessman Tony Wong said. “But that’s not the only thing that makes me happy. Money is No. 1 on my top-5 list, followed by health, family, dogs and friends.” Rusmaini Jusoh, a Malaysian housewife with three children, said she used to quarrel with her truck-driver husband over money, but things improved after she

began a small online business selling second-hand children’s clothing. “With more money, we could take the kids for holiday and buy them whatever they want. That makes me happy,” Rusmaini said. “But, more important, we must be grateful for what we have. That will surely make us happy.”

Indonesia

“Of course, without money you cannot fulfill your basic needs, but money is not everything,”said Irwan Yahya, a 45-year-old mechanical engineer in Jakarta who runs his own company. “Otherwise, happiness only belongs to the rich.” Daisy Daryanti, a 50-year-old Indonesian housewife, said money can buy happiness, but only for a “moment.” “Happiness is relative, not merely about money, but tranquility, quietness,” she said. AP

3-DAY EXTENDED FORECAST NOVEMBER 1, 2014 | SATURDAY

TODAY’S WEATHER Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rains and showers.

NORTHEAST MONSOON AFFECTING NORTHERN LUZON. (AS OF OCTOBER 31, 5:00 PM)

24 – 31°C

23 – 32°C

TUGUEGARAO

22 – 31°C

23 – 32°C

SBMA/CLARK 24 – 31°C METRO MANILA 23 – 31°C

TAGAYTAY CITY 20 – 27°C

21 – 32°C

NOV 4

TUESDAY

26 – 32°C

26 – 31°C

23 – 32°C

TACLOBAN

24 – 31°C

23 – 31°C

24 – 31°C

22 – 33°C

CAGAYAN DE ORO

23 – 31°C

23 – 30°C

24 – 32°C

24 – 28°C

23 – 29°C

15 – 24°C

SBMA/ CLARK

25 – 31°C

25 – 30°C

24 – 31°C

ZAMBOANGA

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

LEGAZPI

PUERTO PRINCESA CITY 24 – 31°C

TACLOBAN CITY 23 – 31°C

METRO CEBU 26 – 31°C CAGAYAN DE ORO CITY 24 – 31°C ZAMBOANGA CITY 24 – 29°C

PUERTO PRINCESA

ILOILO/ BACOLOD

24 – 32°C

24 – 31°C

SUNRISE

SUNSET

MOONSET

MOONRISE

5:51 AM

5:27 PM

12:00 AM

1:01 PM

21 – 27°C

25 – 31°C

HALF MOON FULL MOON

OCT 30

24 – 30°C

25 – 30°C

NOV 7

6:06 AM

CELEBES SEA

3:13 AM

0.93 METER

Cloudy skies with rain showers and/or thunderstorms.

25 – 30°C

24 – 30°C

Partly cloudy to at times cloudy with rain showers.

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

www.panahon.tv

SABAH

12:02 PM

0.00 METER

Partly cloudy to cloudy skies with isolated rain showers and/or thunderstorms

Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).

METRO DAVAO 25 – 32°C

LOW TIDE MANILA HIGH TIDE SOUTH HARBOR

10:48 PM

24 – 31°C

NOV 4

TUESDAY

26 – 32°C

15 – 23°C

21 – 27°C

NOV 3

MONDAY

23 – 32°C

15 – 23°C

21 – 27°C

NOV 2

SUNDAY

METRO CEBU

LEGAZPI CITY 24 – 32°C

ILOILO/ BACOLOD 24 – 30°C

3-DAY EXTENDED FORECAST

BAGUIO

TAGAYTAY

The banks’ deposit reserve hikes and the SDA adjustments were on top of the adjustments in the rate at which the central bank borrows from or lends to banks overnight. The central bank acknowledged the deceleration in M3 growth was brought about by the series of tightening measures during the year. “Domestic liquidity growth is expected to further moderate to levels consistent with domestic demand, as previous monetary adjustments continue to work their way through the economy,” the central bank said. The BSP also said that sustained money-supply growth during the period was due to sustained demand for credit in the domestic economy. In a separate report on Friday, the central bank said bank lending continued to expand in September as loans for production activities increased. In particular, outstanding loans of large banks in September grew 20.5 percent, slightly faster than the revised 20.1 percent reported the previous month. Loans for production activities set the pace of growth for the month, equal to 80 percent of total loan portfolio during the period. The volume of production loans expanded by 18.7 percent in September, from 19 percent in August. “The rise in production loans was driven primarily by increased lending to the following sectors: wholesale and retail trade, real estate, renting and business services, manufacturing, electricity, gas and water, and financial intermediation. Bank lending to other sector also rose during the month except for public administration and defense, which declined by 1.8 percent,” the central bank said.

This indicated success in moderating the continued, but unwarranted growth in money supply that could wreck the carefully laid out plan by the monetary authorities to boost demand and support growth. Unwarranted money-supply levels result to too much money chasing after too few or the same amount of services and goods and a perfect recipe for runaway inflation. The seven-man Monetary Board, headed by BSP Governor Amando M. Tetangco Jr. started in March this year a series of events designed to supply the $270-billion Philippine economy with just enough money in the system to allow growth to happen minus the hazard of inflation. First, the monetary authorities ramped up the banks’ deposit reserves a full percentage point higher in March, the full impact of which was felt the following April when the measure became effective. The deposit reserve hike effectively denied the banks the peso liquidity they need to flood the financial system with potentially inflationary liquidity. The BSP imposed another 1-percentage-point deposit reserve hike in May that sapped billions of pesos more in so-called excess liquidity from the system. In its desire to deny the system with any more residual sources of inflation, the Monetary Board raised the interest rate on its special deposits facility to capture billions more in excess liquidity still in circulation and into the vaults of the central bank ,where they may no longer do financial mischief. The special deposit account (SDA) window of the BSP became a magnet for funds seeking virtually risk-free opportunities for investments as the rates were raised in June, July and September this year.

METRO DAVAO

TUGUEGARAO CITY 22 – 31°C BAGUIO CITY 15 – 24°C

NOV 3

MONDAY

METRO MANILA

LAOAG

LAOAG CITY 21 – 33°C

NOV 2

SUNDAY

Money-supply. . . continued from a1

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The Nation BusinessMirror

news@businessmirror.com.ph

Editor: Dionisio L. Pelayo • Saturday, November 1, 2014

Court stops govt from charging airport fee

By Recto Mercene and Claudeth Mocon-Ciriaco

PASAY City court on Friday issued a temporary restraining order (TRO) against the government’s move to collect a P550 airport terminal fee from all international passengers, including overseas Filipino workers (OFWs). In a two–page order, Judge Tingaraan Guiling of Branch 109 has restrained for at least 20 days the Department of Transportation and Communications (DOTC) and the Manila International Airport Authority (Miaa) from implementing Memorandum Circular (MC)

8 issued by the latter. The MC seeks to integrate the International Passenger Service Charge (IPSC), commonly known as terminal fee, with airplane tickets purchased by the passenger. The government was supposed to start implementing the IPSC on

October 1 but moved it a month later, or on Saturday. Guiling also ordered a hearing on the TRO on November 17. Sen. Aquilino Pimentel III has earlier warned the Miaa and the DOTC of possible violation if MC 8 is pursued. “They want to violate an existing law exempting our OFWs from paying terminal fees. What for? Removing the terminal fee counters at the airport will not ease congestion because you will have another line where our modern-day heroes need to line up to refund a fee that they are legally exempted from paying,” Pimentel told reporters before the Pasay court issued its order. The TRO stems from a petition on October 28 by at least 12 OFW groups and non-governmental organizations who told the court MC 8 is “illegal.” The petitioners said the Miaa

directive is a “clear violation” of Section 35 of Republic Act 1022, or the Migrant Workers and Overseas Filipinos Act of 1995. The section grants migrant workers exemption from “payment of travel tax and airport fee” as soon as they can show proof of entitlement as granted by the Philippine Overseas Employment Administration. Pimentel said MC 8 “should be scrapped because it is illogical, legally questionable and extremely unfair to our OFWs. Labor Secretary Rosalinda D. Baldoz has expressed opposition to the scheme. Although there is a refund scheme for terminal fees to be integrated into the airline tickets, “we reiterate our earlier position articulated by our representatives during the meetings called by the Miaa to continuously and automatically exempt OFWs from paying the IPSC

even for tickets purchased abroad or via online,” her October 7 letter to Transportation Secretary Joseph Emilio Abaya said. We can’t have two major departments at odds with each other over the collection of terminal fees by airline companies, according to Pimentel. He added airline companies should not be caught between such differences in opinion between the DOTC and the Department of Labor and Employment. “Let’s resolve these issues by hearing all sides, and agreeing on a common interpretation of what the law actually says. Definitely, we will question the Dotc and Miaa on why they continue to insist on a November 1 implementation of the IPSC scheme even after getting the position of the secretary of labor, as well as various OFW groups about this matter.” The solon said he will file a Senate resolution calling for an inquiry

into the Miaa MC 8. Meanwhile, Miaa General Manager Jose Angel Honrado said it’s “all systems go” on November 1 for the integration of the IPSC into the cost of airline tickets. “Everyone has the right to be heard. Their plan to bring their issues to court is a right they are exercising. [The] same right to be heard was also our basis why we worked so hard on this effort. This integration has been the clamor over the years from passengers using Naia [Ninoy Aquino International Airport],” Honrado added. The airport chief said the first effort to integrate dates back to 20 years ago when the Miaa and the airline companies have difficulty agreeing on the terms of the integration. “Finally, both parties are able to see a win-win solution to these issues,” Honrado said adding: “This is a dream come true for everyone.”

Thousands of new cops to be posted in provinces

MID reports of controversies involving cops, the Philippine National Police (PNP) inducted into service 3,496 recruits to fill up requirements of police regional offices (PROs) for more members. Oath-taking ceremonies were held in the 17 PROs across the country from October 7 to 21, formalizing the appointment of these recruits to the rank of Police Officer 1 with a basic monthly salary of P14,834 and mandatory allowances and other noncash benefits totaling P5,660 a month. PNP chief, Director General Alan LM. Purisima, said the new recruits are expected to further beef up the existing PNP personnel complement for law-enforcement and publicsafety operations of PROs. In his report to Purisima, PNP Director for Personnel and Records Management Jaime Morente said the recruits are composed of 2,877 male and 619 female police rookies. Morente’s report said the recruits completed the following required recruitment processes: neuro-psychiatric screening; physical, medical and dental examination;

physical agility test; drug test; background investigation; and eligibility examinations. Morente explained that random drug testing is further conducted at any time during the entire recruitment process and training period. Upon their appointment into the service, the recruits will undergo the mandatory Public Safety Basic Recruit Course at the Police National Training Institute for six months. After that the trainees will undergo another six months of field training before they are assigned to full duty status in the Regional Public Safety Battalion in the PROs. PNP Spokesman Senior Supt. Wilben Mayor said the National Police Commission has authorized the PNP to recruit 13,000 more this year as part of the 2014 Regular and Attrition Recruitment Program. The Attrition Recruitment Program is intended to replace the projected number of personnel who will be separated from the service due to retirement, resignation and dismissal for cause. According to Mayor, an average of 2,500 to 3,000 personnel retire each year. Rene Acosta

Cuisia asks nurses in the US to promote PHL as tourist spot

HILIPPINE Ambassador to the United States Jose L. Cuisia Jr. asked nurses in the US to become tourism ambassadors for their homeland. “The Department of Tourism has proclaimed 2015 as ‘Visit the Philippines Year’ and we count on your help to make this a success. I ask you to consider being our tourism ambassadors, particularly at this time when there is renewed interest from across different tourism markets in the Philippines,” Cuisia said during the anniversary celebration of the Philippine Nurses

Power supply. . .

continued from A8

mentioned that the projected powersupply shortage for two weeks in April 2015 is at 31 megawatts (MW). But the DOE official noted that the country should also have power reserves ideally at 647 MW. Hence, projected power shortage in summer next year is 678 MW. Energy Secretary Carlos Jericho L. Petilla in previous interviews said the projected power shortfall next year is mainly due to scheduled maintenance of various power plants. Although the country received investments in new power plants, these investments in the energy sector will not yet operate by 2015.

Association of New England. He said the Philippine Embassy and the Consulates General in the US are also gearing up for Visit the Philippines 2015 with the Tenth Ambassadors, Consuls General and Tourism Directors Tour “set to be the biggest installment of the program yet.” The tour gives Filipinos and Americans living in North America the chance to experience the beauty of the Philippines’s top destinations and witness remarkable progress that has been achieved during the past years. Recto Mercene

Moreover, aside from looking into reliable power supply, the Philippines also needs to focus on indicators such as starting a business, getting credit and protecting minority investors, according to Luz. “Starting a business is No. 1 on my list to move on [the ranking]. We have the most number in Asean for corporations; not the longest but the most number,” Luz mentioned. The Philippines has 16 procedures for an enterprise to register its business name just to start a business. This is the longest procedure among 10 Asean members; Singapore and Malaysia only have three steps in starting a business; Thailand has four steps; Lao PDR has six steps; Vietnam and Indonesia have 10 steps; Cambodia and Myanmar have 11 steps; and

‘undas’ bus Passengers build up at the Araneta Provincial Bus Station for the All Saints’ Day and All Souls’ Day commemoration. NONOY LACZA

Majority of workers in electronics are women–PSA By Cai U. Ordinario

HE majority of the workers in the electronics industry are women, according to the Philippine Statistics Authority (PSA), citing 2012 data. The PSA data showed around 70.2 percent or 113,163 of the 161,284 work force in the electronics industry are women as of June 30, 2012. However, more than half, or 55.5 percent, of them only receive daily wages and only 44.3 percent of them

Brunei Darussalam has 15 steps. “We would continue to argue and we will take a very close look in credit information and protection of minority investors portions. They put in new criteria in each side and we look at it,” Luz added. According to Lopez Carlos, the WB and IFC inserted three new measures in this year’s report and another five measures next year particularly in areas of resolving insolvency, protecting minority investors, and getting credit. In the Ease of Doing Business Report 2015, the Philippines ranked 95th among 189 economies, 13 notches higher than the 2014 ranking of 108th place. The 2013 report placed the Philippines at 138th; in 2012 at 136th; and 2011 at 148th. PNA

are paid monthly salaries. The proportion of young workers (15 to 24 years old) in the work force was low at 17.8 percent (28,754), according to the PSA. Due to their number, the majority of union membership in electronic firms are composed of women. Data showed that of the 7,634 workers who are members of unions in the electronic industry, some 4,589 are women and only 3,045 are men. The PSA also said that of the 7,837

workers who are covered by Collective Bargaining Agreements, some 4,667 are women and 3,170 are men. “Given the structure of the industry work force, union membership was female-dominated with three women for every two men union members [60.1 percent versus 39.9 percent],” the PSA said. Overall, the PSA said employment in 209 establishments engaged in electronics estimated at 161,284 in 2012. This translates to an average 770

employees per establishment. The industry was dominated by establishments engaged in the manufacture of semiconductor devices and other electronic components which made up 70.3 percent or 147 of total establishments. The rest were engaged in the manufacture of the following: computers and peripheral equipment and accessories (23.4 percent or 49); consumer electronics (4.8 percent or 10); and communication equipment (1.4 percent or three).

DTI says to intensify inspection of building materials

HE Department of Trade and Industry’s Consumer Protection Group (CPG) announced on Friday it will be intensifying quality inspection of construction materials in the last quarter of the year, in anticipation of the pickup in construction activity in 2015. Victorio Mario A. Dimagiba, undersecretary for the CPG, told reporters in a recent news briefing that the group would be reinforcing inspection of construction materials, especially galvanized-iron (GI) sheets and steel bars,in the following months. We plan to intensify our monitoring beginning next week, Dimagiba

said, saying the strong construction activities next year is expected to be in the housing sector. Construction in housing, whether first class, medium class, or mass housing, is expected to really pick up, he added. The trade undersecretary added the group will be zeroing in on the quality of steel bars and the GI sheets as prices have remained stable due to increased importation. Dimagiba reported that prices for 40-kilogram bags have gone down by at least P10 due to tight market competition. The CPG earlier in the year seized from retailers across various cities in Metro Manila uncertified and substandard steel bars, angle

bars, and ceramic tiles worth almost P0.7 million. Retailers can, likewise, expect the CPG to keep a closer watch on holiday items such as Noche Buena food covered by the suggested retail price scheme and Christmas lights and accessories, as the CPG is planning a special monitoring session on the said items in November. Dimagiba said the team will be confiscating Christmas lights without the Import Commodity Clearance sticker and issue notices of violation to sellers. Those found selling Noche Buena above the SRPs scheme will be given show cause orders. Catherine N. Pillas

Opinion BusinessMirror

A6 Saturday, November 1, 2014

Editor: Alvin I. Dacanay

editorial

The smartphone digital economy

N October 20 Apple Inc. launched its new Apple Pay mobile-payment and digital-wallet service, which lets people with certain Apple mobile devices make payments at retail and online checkout stations. The purpose of this service is to allow consumers to do away with using plastic cards with magnetic strips that need to be run through a card reader.

Apple describes the current electronic-payment system as “outdated, vulnerable and insecure.” Apple Pay allows customers to place their Apple device near the point-of-sale (POS) system and authenticate their purchase with a fingerprint. The company says Apple Pay is more secure, easier and faster than the traditional “swipe” method. If you ever used your automatic teller machine (ATM) card at the supermarket and had to leave the checkout stand to find a reader that would accept your card, Apple’s new service might be better for you. However, Filipinos are more inclined to buy things with cold, hard cash. In fact, the Philippines, along with Nigeria, ranks just near the bottom in using the so-called new digital economy. In 2008 the Philippines’s score was only 5.37; now it’s 19.38, just below Indonesia, which was given a score of 19.85. The Philippines is not shy about using electronic means to buy stuff, as evidenced by the large number of websites that sell various merchandise. While there seems to be no complete statistics on local digital payments, the country’s two major cell-phone service providers have been in the digital-payment business for several years. One of them, Smart Communications, has the Smart Money system, which, the company says, “is an electronic wallet, similar to a bank account, that allows you to do bills payment, reload of airtime and money transfers using a Smart mobile phone.” Smart is also issuing a MasterCard for ATM and debitcard transactions. The other, Globe Telecom, has Globe GCash, which also does those things. Still, it may be some time before we have a service similar to Apple Pay and its competitors in the United States. About 40 percent of Filipinos use smartphones, while only 4 percent have a credit card. While that 40 percent certainly provides an adequate customer base for a smartphone POS payment system, putting the electronic infrastructure in place is a problem. This requires a substantial investment, as did the POS system for plastic cards, and the Philippines has received relatively little private equity investment to date. But that could change with the forthcoming Association of Southeast Asian Nations economic integration, because both Thailand and Malaysia have gone quite far into the digital economy. The day when you will buy your clothes and groceries without being asked, “Current or savings?” may no longer be that distant, and the only thing you will have to remember is which thumb you used to authenticate your identity.

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Quantitative easing ends, so what? John Mangun

OUTSIDE THE BOX

N late November 2008 the United States’s central bank, the Federal Reserve (the Fed), began a quantitative-easing (QE) program by buying $800 million of primarily bad housing mortgages. These mortgages were bought from banks in order to keep them from going out of business. Since then, the Fed has purchased some $4 trillion in various types of government and private-corporation debt, which, in effect, puts an additional $4 trillion into the US economy to stimulate economic activity and growth. The Fed actually does not have any money. It uses accounting tricks—I mean, practices—to create the money. All the accountants care about is that the amount of liabilities and the amount of assets match. The Fed credits the sellers of the debt with money equal to the amount of debt it buys. Last week the Fed, following a timetable that was set earlier this year, ended its debt-buying program—well, sort of. It will not increase the amount of debt it holds by buying “new” debt, but will still maintain $4 trillion on its books. So

if a $100-million bond matures and is retired next week, the Fed will either go out and buy another $100 million worth of debt to replace it or merely roll the old bond over into a new one. What is significant is that the Fed will maintain near-zero interest rates, which means that QE’s end means little, as I wrote at this time last year, when the timetable was first announced. Easy and cheap money will still flow into the US and global economies. What does the end of QE mean to the US economy? Imagine a friend who goes to the province, then brings back an amulet that was bought from a “shaman,” who guaranteed a big Lotto win. Several months pass and your friend has yet to win big, and you point that out to him. Your friend

Tim Cook speaks up By Tim Cook CEO of Apple Inc.

HROUGHOUT my professional life, I’ve tried to maintain a basic level of privacy. I come from humble roots, and I don’t seek to draw attention to myself. Apple is already one of the most closely watched companies in the world, and I like keeping the focus on our products and the incredible things our customers achieve with them.

At the same time, I believe deeply in the words of Dr. Martin Luther King, who said: “Life’s most persistent and urgent question is, ‘What are you doing for others?’ ” I often challenge myself with that question, and I’ve come to realize that my desire for personal privacy has been holding me back from doing something more important. That’s what has led me to today. For years, I’ve been open with many people about my sexual orientation. Plenty of colleagues at Apple know I’m gay, and it doesn’t seem to make a difference in the way they treat me. Of course, I’ve had the good fortune to work at a company that loves creativity and innovation and knows it can only flourish when you embrace people’s differences. Not everyone is so lucky. While I have never denied my sexuality, I haven’t publicly acknowledged it either, until now. So let me be clear: I’m proud to be gay,

and I consider being gay among the greatest gifts God has given me.

Richer life

BEING gay has given me a deeper understanding of what it means to be in the minority and provided a window into the challenges that people in other minority groups deal with every day. It’s made me more empathetic, which has led to a richer life. It’s been tough and uncomfortable, at times, but it has given me the confidence to be myself, to follow my own path, and to rise above adversity and bigotry. It’s also given me the skin of a rhinoceros, which comes in handy when you’re the CEO of Apple. The world has changed so much since I was a kid. America is moving toward marriage equality, and the public figures who have bravely come out have helped change perceptions and made our culture more tolerant. Still, there are laws on the books in a majority of states that allow employers to fire people based solely

says, “Yeah, I didn’t win the Lotto, but it still worked. I did not get run over by a jeepney.” The rationale for QE has been this: The US economy would have been worse without it, even if economic growth did not happen. In the words of American comedian Bill Maher, “50 years ago, the largest employer was General Motors, where workers earned an equivalent of $50 per hour [in today’s money]. Today the largest employer— Walmart—pays [about] $8 per hour.” Here is what the man who ran the first QE for the Fed, Andrew Huszar, said three days ago: “QE hasn’t really helped the macroeconomy very dramatically, so, by extension, I don’t believe the end of QE will really hurt the macroeconomy.” But what about the stock markets? The US government just announced a huge jump in gross domestic product—up 3.5 percent in the third quarter. But this is all government, not consumer, spending, and, believe it or not, much of it was because of US military action against the Islamic State, which added $10 billion per month. Wall Street, together with the US government, will continue to prop up the US stock market until interest rates go up in 2015 or later. But what about stock markets like the Philippines’s?

US companies have not used their cheap borrowings under QE to increase their business. In the last two years, IBM Inc. has borrowed billions; almost every dollar has been used to buy back its stock, artificially inflating its per-share earnings and stock price. Since 2006, IBM’s debt-to-equity ratio has gone from 50 percent to 250 percent. Can this last? Of course not. But is the US government going to allow half of its Top 500 companies to go bankrupt, just to bring common sense back into the financial system? I think not, at least, not anytime soon. Money seeks genuine value, and that is what may eventually cause a potential collapse in the West. But, in the meantime, that money people will continue to play ball with the Fed and the US government, while seeking real investment value in places like the Philippines. The party is not over. The Fed will just not be bringing out additional punchbowls while it continues to refill the existing ones, even if it does so a bit more slowly.

on their sexual orientation. There are many places where landlords can evict tenants for being gay, or where we can be barred from visiting sick partners and sharing in their legacies. Countless people, particularly kids, face fear and abuse every day because of their sexual orientation.

respect my desire to focus on the things I’m best suited for and the work that brings me joy. The company I am so fortunate to lead has long advocated for human rights and equality for all. We’ve taken a strong stand in support of a workplace equality bill before Congress, just as we stood for marriage equality in our home state of California. And we spoke up in Arizona when that state’s legislature passed a discriminatory bill targeting the gay community.

Sacrifice of others

I DON’T consider myself an activist, but I realize how much I’ve benefited from the sacrifice of others. So if hearing that the CEO of Apple is gay can help someone struggling to come to terms with who he or she is, or bring comfort to anyone who feels alone, or inspire people to insist on their equality, then it’s worth the trade-off with my own privacy. I’ll admit that this wasn’t an easy choice. Privacy remains important to me, and I’d like to hold on to a small amount of it. I’ve made Apple my life’s work, and I will continue to spend virtually all of my waking time focused on being the best CEO I can be. That’s what our employees deserve—and our customers, developers, shareholders and supplierpartners deserve it, too. Part of social progress is understanding that a person is not defined only by one’s sexuality, race or gender. I’m an engineer, an uncle, a nature lover, a fitness nut, a son of the South, a sports fanatic and many other things. I hope that people will

E-mail me at mangun@gmail.com. Visit my website at www.mangunonmarkets.com. Follow me on Twitter at @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

Advocate for equality

WE’LL continue to fight for our values, and I believe that any CEO of this incredible company, regardless of race, gender or sexual orientation, would do the same. And I will personally continue to advocate for equality for all people until my toes point up. When I arrive in my office each morning, I’m greeted by framed photos of Dr. King and Robert F. Kennedy. I don’t pretend that writing this puts me in their league. All it does is allow me to look at those pictures and know that I’m doing my part, however small, to help others. We pave the sunlit path toward justice together, brick by brick. This is my brick. Tim Cook wrote this op-ed piece for the November 3 issue of Bloomberg Businessweek.

Opinion BusinessMirror

opinion@businessmirror.com.ph

How to give Japan a second wind

Evangelii Gaudium Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

William Pesek

BLOOMBERG VIEW

NYTIME I moderate a discussion on Japan, I ask panelists this: If Shinzo Abe were sitting before you now, what steps would you recommend the Japanese prime minister take to hasten his country’s resurgence?

Almost without fail, each mentions his or her favorite elements of the “third arrow” reforms that Abe has already pledged. This phase of his plan, which focuses on deregulation and some degree of structural reform, is the most vital. With the first two—monetary expansion and fiscal stimulus—having been fired, the emphasis is now supposed to shift to lower business taxes, looser labor regulations and better corporate governance. At which point, I press panelists: “OK, but what’s next? What’s your fourth arrow?” Typically, I get blank stares. Abenomics, as I have long argued, is nothing new or imaginative—just things that Japan should have done 10 or 15 years ago. Even if Abe’s reforms were to be fully implemented, they probably wouldn’t suffice to revive the Japanese economy. Here’s what I’d like to see the prime minister add to a fourth arrow: n Support for a startup boom. The weak yen is great for Toyota and Honda, but Japan would get greater mileage from encouraging youngsters like Yoichiro Mikami. The 16-year-old dropped out of high school to launch a crowdfunding startup that helps raise money for other students looking to eschew the salaryman career track. No, I’m not recommended mass truancy. But while Abe’s policies and proposed tax cuts favor companies that employ tens of thousands, they offer little for young Japanese with a laptop and a dream. Japan could stand to build fewer roads in Shikoku or dams in Hokkaido and, instead, create a few multibilliondollar venture capital funds. Rather than promote special-enterprise zones that tend to be more gimmick than growth creator, Abe should give promising startups a years-long holiday from taxes and red tape. n The end of “Amakudari”. Many look askance at the revolving door that shifts Wall Street bankers into top Washington jobs and back. This corrupting practice is so prevalent in seniority-obsessed Tokyo that Japanese have a name for it: Amakudari, or “descent from heaven.” Bureaucrats vying for cushy jobs and lavish pay in industries they oversee obviously have their priorities skewed; their resistance has long impeded deregulation of everything from trade to energy to labor to transportation to education. Tokyo should forcibly shuffle civil servants into different ministries every few years. n Smart immigration. Immigration remains a third-rail issue

in homogenous Japan. But why not increase imports of strategic talent, like Singapore does? This idea has even been championed by former Gov. Shintaro Ishihara of Tokyo, a nationalist known more for xenophobic comments than global thinking. If Japan won’t open the floodgates, the country could, at least, welcome, to use Ishihara’s word, “intelligent” people with specific skills and experience. Let’s make a list of the kinds of talent needed, draw up targets and issue work visas for a few thousand entrepreneurs, scientists and engineers here and few thousand artists, health consultants and other outside talent there—and then add a zero. n A rethinking of energy policy. For such a seismically active nation, Japan is too fixated on nuclear power. As Abe’s mentor, former Prime Minister Junichiro Koizumi, has been arguing, new energy sources aren’t just Japan’s destiny, but the next potential boom industry. Tokyo should set aside reward money of, say, $10 billion to incentivize Japan Inc. to dream up replacements for fossil fuels. Before long, China and India will be making great cars and electronics. Japan can make, and sell at great profit, the means to power those industries. n Courage on the TransPacific Partnership (TPP). Abe gets points for signing into the TPP at the risk of roiling key vested interests like agriculture. But given doubts about United States President Barack Obama’s ability to get any deal past the US Congress, Japan has resisted cuts in import tariffs on rice (as high as 778 percent), sugar (328 percent) and other so-called sacred products. Tokyo must stop worrying about giving away too much to trade partners and focus on the growth, efficiency and productivity gains that Japan would enjoy by opening up. n Quotas for women. Abe’s plan to require businesses with 300plus employees to establish targets for hiring women and getting them into management positions is a good start. But the policy is rife with escape clauses. Formal and binding quotas akin to Norway’s would have more teeth. Tokyo should, at least, start mandating leadership roles at the public-sector level and expand from there. One could argue that Abe has enough to juggle already without adding more controversial measures to his agenda. But with his still-enviable political support, he’s also got the best chance in a decade to right Japan’s economy. This is no time to hesitate.

36th part

IV. Evangelization and the deeper understanding of the kerygma

HE Lord’s missionary mandate includes a call to growth in faith: “Teach them to observe all that I have commanded you” (Matthew 28:20). Hence, it is clear that the first proclamation also calls for ongoing formation and maturation. Evangelization aims at a process of growth, which entails taking seriously each person and God’s plan for his or her life. All of us need to grow in Christ. Evangelization should stimulate a desire for this growth, so that each of us can say wholeheartedly: “It is no longer I who live, but Christ, who lives in me” (Galatians 2:20).

It would not be right to see this call to growth exclusively or primarily in terms of doctrinal formation. It has to do with “observing” all that the Lord has shown us as the way of responding to His love. Along with the virtues, this means, above all, the new commandment, the first and the greatest of the commandments, and the one that best identifies us as Christ’s disciples: “This is my commandment, that you love one another as I have loved you” (John 15:12). Clearly, whenever the New Testament authors want to present the heart of the Christian moral mes-

sage, they present the essential requirement of love for one’s neighbor: “The one who loves his neighbor has fulfilled the whole law…therefore, love of neighbor is the fulfilling of the law” (Romans 13:8, 10). These are the words of Saint Paul, for whom the commandment of love not only sums up the law, but also constitutes its very heart and purpose: “For the whole law is fulfilled in one word, ‘you shall love your neighbor as yourself’” (Galatians 5:14). To his communities, Paul presents the Christian life as a journey of growth in love: “May the Lord

Los Angeles Times (TNS)

F United States President Barack Obama wants to use his last two years to further his agenda, here’s something that he could do that would advance the cause of global security and save the country money: suspend plans to develop a new arsenal of American nuclear weapons. Obama started his presidency with a sharp focus on reducing the world nuclear threat, and he had considerable initial success. As columnist Jim Hoagland wrote in 2010, “President Obama has turned the once utopian-sounding idea of global nuclear disarmament into a useful tool for US foreign policy.” But, by 2011, his plans to secure all nuclear materials from terror-

ists, stop new nuclear states and shrink global arsenals had slowed to a crawl. While his promised policies to reduce the role and numbers of nuclear weapons lagged, the Pentagon and Congress raced ahead with plans to buy a whole new generation of nuclear-armed submarines, bombers and missiles. Over the next few years, government actions could lock in spending on these new weapons programs for the next 50 years. Unless something is done soon, we will lay out as much as a trillion dollars over the next few decades to replace our obsolete Cold War nuclear arsenal. We will buy thousands of new hydrogen bombs and mount them on hundreds of new missiles and planes. The Congressional Budget Office estimates that, over the

make you increase and abound in love for one another and for all” (1 Thessalonians 3:12). Saint James, likewise, exhorts Christians to fulfill “the royal law according to the Scripture: You shall love your neighbor as yourself” (2:8), in order not to fall short of any commandment. On the other hand, this process of response and growth is always preceded by God’s gift, since the Lord first says: “Baptize them in the name...” (Matthew 28:19). The Father’s free gift, which makes us His sons and daughters, and the priority of the gift of His grace (cf. Ephesians 2:8–9; 1 Corinthians 4:7), enables that constant sanctification that pleases God and gives Him glory. In this way, we allow ourselves to be transformed in Christ through a life lived “according to the Spirit” (Romans 8:5).

Kerygmatic and mystagogical catechesis

EDUCATION and catechesis are at the service of this growth. We already possess a number of magisterial documents and aids on catechesis issued by the Holy See and by various episcopates. I think, in particular, of the Apostolic Exhortation Catechesi Tradendae (1979), the General Catechetical Directory (1997) and other documents whose contents need not be repeated here. I would like to offer a few brief considerations that I believe to be of particular significance. In catechesis, too, we have rediscovered the fundamental role of

Why are so many people so poor? Cecilio T. Arillo

database

HERE are five basic reasons many Filipinos are so poor today: 1) The poor have no access to land. Despite three generations of agrarian-reform programs, land distribution is still very badly skewed.

2) The Philippines has a high population growth rate—the 12th highest in the world—and it continues to grow at a rate of 1.89 percent a year. According to the 2010 census results, the nation’s population increased by almost 16 million from the figure found in the 2000 census results. The growth rate has slowed slightly from the previous census, down to 1.89 percent from 2.34 percent. The next census is scheduled for 2015. To figure out how many people live in the Philippines in 2014, we can look at data provided by the Philippine National Statistics Office. Projecting this data forward, using the 1.89-percent growth rate, gave us a population of 98,734,798 in 2013 and a population of 100,617,630 in 2014. 3) The economic policies of the past generation (one generation is 30 years) have failed to alleviate mass poverty. Worse, many public policies are actually antipoor and biased against people in rural areas. The simple reason for this is that public

policy is largely made by those who lived in the cities. 4) The post-Marcos administrations have always said alleviating poverty was their first concern. Yet, they seldom put their money where their mouths were. For instance, after analyzing budget trends, the National Economic and Development Authority concluded that the bulk of public money actually went to the richer regions. 5) The tax system takes, in percentage terms, more from the poor (27 percent on average) than from the rich (18 percent). Tax evasion (mostly by the rich) costs more than P400 billion a year in lost revenues. The post-Marcos administrations had no effective capital-gains tax, and taxes on real property were extremely low and lightly enforced. Any strategy against poverty must directly tackle the issue of inequality, not merely by spreading wealth, but by sharing more equitably the resources for development by communities and a better distribu-

How big a nuclear arsenal does the US really need? By Joe Cirincione

Saturday, November 1, 2014

next 10 years alone, the government will lay out $570 billion for new nuclear weapons and related programs, such as missile defense. Proponents claim the spending is necessary to assure the nation’s security. But history shows that buildups like this trigger new arms races, inspiring other nations to match or exceed our capabilities. Already, the Pentagon has submitted its wish list for the next budget to the president, and in coming weeks Obama will finalize the budget and submit it to Congress. This will be his “legacy” budget, as one senior defense official said. It will be his last big chance to change the country’s approach to nuclear spending. The president should submit a budget to Congress that suspends spending on new nuclear weapon

programs. Congress will object, of course, but that will prompt a longoverdue public conversation on nuclear policy. In the absence of such a discussion, we risk unnecessary spending on an arsenal. We are, for example, about to commit to spending $350 billion to develop, produce and deploy a new fleet of 12 nuclear-armed submarines. But we have not yet determined whether we will need all—or any—of the 1,000 hydrogen bombs they will carry. And have we considered how other nations, including China, will react to the new subs? US Secretary of the Navy Ray Mabus made the case to Congress earlier this month for additional funding to build the submarine fleet, saying that, without extra money, the new subs would “gut the rest

the first announcement or kerygma, which needs to be the center of all evangelizing activity and all efforts at Church renewal. The kerygma is trinitarian. The fire of the Spirit is given in the form of tongues and leads us to believe in Jesus Christ, who, by His death and resurrection, reveals and communicates to us the Father’s infinite mercy. On the lips of the catechist, the first proclamation must ring out over and over: Jesus Christ loves you; He gave His life to save you; and now He is living at your side every day to enlighten, strengthen and free you. This first proclamation is called “first,” not because it exists at the beginning and can then be forgotten or replaced by other more important things. It is first in a qualitative sense because it is the principal proclamation, the one that we must hear again and again in different ways, the one that we must announce one way or another throughout the process of catechesis, at every level and moment. For this reason, too, the priest—like every other member of the Church— ought to grow in awareness that he himself is continually in need of being evangelized. To be continued For comments, e-mail caritas_manila@yahoo.com. For donations to Caritas Manila, call (632) 563-9311. For inquiries, call (632) 563-9308 or 563-9298, or fax 563-9306.

tion of the burden of taxation. As a result, the government had very little money to spend on social services, and what it spent went disproportionately to the nonpoor. For instance, a unit in the Bagong Lipunan Improvement of Sites and Services (BLISS) housing project, which was originally conceived as mass housing for the poor and which cost less than P300,000 during Marcos’s time, now sells for P3 million. Even the education policy is loaded against the poor. College-entrance examinations, because they use English, favor students from urban homes. The government, thus, subsidizes public universities, such as the University of the Philippines, where enrollment is inexpensive at an average of P24,000 annually for every student, but where most students belong to the upper class. Like the economy, national politics still has a duality. Side by side with the politics of patronage in traditional society, the country now has a modern political community largely based in Metro Manila and other big cities. The urban elites and middle class have been influencing national politics. Through their control and patronage of national newspapers, they have begun to impose their own standards on legislators who are still overwhelmingly elected by rural constituencies. A study by the Philippine Council of Management (Philcoman) revealed that there is no greater challenge to the nation than the unifi-

cation of the two nations into one, not by bringing down the rich to the level of the poor, but by raising the poor nearer to the status of the rich. “Mass poverty is the root of communist insurgency in the country. It exacerbates the crime situation, and [this is] why, in times of economic crisis, there is always a sudden surge in the crime index. It explains why [the] government’s capability to provide public and social services is perpetually strained, as slum communities multiply faster than it can cope with,” the Philcoman study said. The obvious strategy, then, is for the government to directly attack mass poverty. Public policy must emphasize not so much growth in itself as the satisfaction of basic needs. To begin to do this right, the government needs the clearest understanding of what it is really trying to confront. Filipino leaders and policymakers have traditionally worshipped a canon that economic growth eventually trickles down to the poor. If this contains any truth at all, then we would have to say that our economy has defied the laws of gravity. The share of the higher-income group, according to a University of the Philippines School of Economics study, has been increasing “almost entirely at the expense of the lower-income groups.” Real wages, when adjusted for inflation, have been declining since 1949, except for one or two good years.

of our shipbuilding program.” In making his case, he also noted that “we’ve got to have this debate now” over the cost of the nuclear triad. I agree with that part of his testimony wholeheartedly. The Pentagon budget is about to be cut by tens of billions of dollars a year, as part of the fallout from the congressional budget collapse and the resulting sequester. This will begin to force choices. But contracts to update the nuclear arsenal have a head start, and unless we have a full discussion now, unnecessary programs may be locked in before the budget crunch fully hits. Instead of blindly moving ahead with building submarines and other expensive nuclear paraphernalia, let’s determine our actual needs. Let’s fully examine whether modifying

existing submarine designs might suffice. And while we’re at it, let’s talk about a range of other expensive nuclear weaponry on the drawing boards, including a new nucleararmed penetrating bomber and a new standoff nuclear cruise missile. Last year Democrat Sen. Dianne Feinstein of California weighed in on the issue, asserting that the nation’s “nuclear forces are larger than needed for current military missions.” And she offered sensible advice: “It is time to think creatively about how to maintain a much smaller nuclear deterrent at an affordable cost.” Who could disagree with that?

E-mail: cecilio.arillo@gmail.com.

Joe Cirincione is the president of Ploughshares Fund and the author of Nuclear Nightmares: Securing the World Before It Is Too Late.

2nd Front Page BusinessMirror

A8 Saturday, November 1, 2014

Palace sure budget bill OKd before Dec recess By Butch Fernandez

alacañang is counting on Congress to approve the final version of the P2.6trillion 2015 budget bill before lawmakers go on Christmas vacation, despite protests by minority members that the annual money measure okayed by the House on Wednesday was legally flawed. The budget bill bears questionable insertions not fully discussed in plenary, including a redefinition of savings that runs against the Supreme Court ruling on the outlawed Disbursement Acceleration Program. “We would like to thank the House of Representatives for the speedy resolution and passing of the 2015 budget in their chamber,” Palace Spokesman Edwin Lacierda told reporters. Lacierda added: “Now, the process of budget approval goes to the Senate, and we also hope that the Senate will look into the budget, and we hope that, before the year ends, the budget will be approved.” The Palace official also downplayed reported complaints raised See “Budget,” A2

GSIS looks to sell around 100 paintings as bond yields slump

overnment Service Insurance System (GSIS) President Robert Vergara, keen to shore up returns at the Philippines’s biggest state pension fund as bond yields slump, is considering selling paintings hanging at the national museum. The GSIS may put around 100 works by Philippine artists, including Juan Luna and Fernando Amorsolo, up for sale over the coming 10 years as local consumers become more wealthy, Vergara said in an interview in Manila. The $20-billion fund targets returns of at least 8.5 percent to meet obligations to the 1.4 million workers whose savings it manages and has generated between 9 percent and 12 percent over the last three years, he said. “We do believe that art is best left to collectors as opposed to a pension fund,” he said. “The collection is not something that generates a return on its own.” President Aquino’s efforts to cut

VERGARA: “We do believe that art is best left to collectors as opposed to a pension fund. The collection is not something that generates a return on its own.”

budget deficits and curb corruption have won four credit-rating upgrades from Standard & Poor’s since he took office in June 2010, prompting an almost halving of sovereign bond yields. The GSIS, which has 45 percent of its assets invested in debt, is increasing returns by boosting eq-

uity holdings, investing in railways, selling some real estate and farming out cash to top-performing funds. The pension fund raised investments in longer-dated debt in 2010 and 2011 to take “the full benefit of the drop in rates,” Vergara said in a telephone interview on Friday. Philippine local-currency sovereign notes have returned 5.1 percent this year, the least among Southeast Asian emerging markets after Malaysia, Bloomberg indexes show. Returns have dropped from 17 percent in 2011, 11 percent in 2012 and 8.6 percent in 2013. The yield on the 10-year government paper fell to 4.13 percent on Thursday from 7.93 percent at the end of June 2010. Similar-maturity debt from Indonesia yields 8.09 percent. The most valuable painting in the collection is The Parisian Life, an 1892 oil on canvas by Juan Luna that the fund bought for P46 million ($1 million) in 2002, according to the GSIS web site. It is probably worth around P60 million, Regina Mercedes Cruz, a curator at the Bangko Sentral ng Pilipinas Museum in Manila, said in an interview on Thursday. The paring of the art collection will take into

account more than just price, as the collection is “part of our cultural identity,” Vergara said. Some 28 percent of GSIS assets under management consist of loans to members, 17 percent is in stocks and the remaining 10 percent includes categories like property and art, said Vergara, who was appointed by Mr. Aquino in 2010 and previously worked as a fund manager at Morgan Stanley Asia Ltd. While government debt has been giving “relatively thin” returns, the fund intends on keeping its bond holdings at around 45 percent of its portfolio because of risk and liquidity considerations, he said. The government will allow state-controlled bodies including pension funds to start trading debt in the secondary market, adding around P800 billion to the pool of tradable notes, Treasurer Rosalia de Leon said on September 22. “Philippine bond yields are still at the lower end relative to other countries in Asia,” Raymond Lim, the Singapore-based head of Asian debt at Amundi Asset Management, which oversees $1.1 trillion globally, said in an interview on Continued on A2

WORLD BANK, PHL SIGN NEW $300-M LOAN PACKAGE T By David Cagahastian

christmas display A worker puts finishing touches on a Christmas display to be installed at the Araneta Center. NONOY LACZA

Quality power supply to sustain ease of doing business in PHL

s the Philippines surged 53 notches in the Ease of Doing Business report of the World Bank (WB) and International Finance Corp. (IFC) from 2011 to 2015, both public and private sectors are increasing their efforts to achieve the country’s goal of getting in the upper third of the world ranking. National Competitiveness Council (NCC) Co-Chairman for Private Sector Guillermo M. Luz said quality of power supply in the country is very crucial, not only in attaining upgrades in the Doing Business report ranking but basically for business operations. “Quality of power supply is important. We should have, of course, paid attention to it regardless it would affect our ranking or not because it could affect us in business,” Luz said.

The Doing Business report measures regulations in the local economy through 10 indicators affecting the cycle of a business that include starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Aside from global rankings, the World Bank and IFC report now focuses on the “distance to frontier,” which is determined by scores. The closer the score to a perfect point of 100, the better a country’s performance in easing doing business. In a video conference with Southeast Asian nations, Washington, D.C.based WB Group Global Indicators Group Director Augusto Lopez Carlos

announced that the Doing Business report has expanded its measure; now, looking into quality of regulatory environment, which will include reliability of power supply in an economy. The concern is this: Can the Philippines sustain its upgrades in the Doing Business report with the newly introduced methodology and the looming power situation in the country? “I hope [the new measure will] not [affect our increase in ranking],” he added. “Definitely, the private and public sectors take steps to make sure that we have the proper power supply next year,” Luz said. Meanwhile, in a hearing at the House of Representatives early this month, Irma Exconde, Department of Energy (DOE) assistant director, See “Power supply,” A3

he Philippines and the World Bank have signed a $300-million Development Policy Loan that will be used for infrastructure, social projects and in improving the country’s regulatory processes. Finance Secretary Cesar V. Purisima announced that he had signed the World Bank’s Third Development Policy Loan (DPL 3) on October 14 on behalf of the Philippine government. The Department of Finance (DOF) said the loan program aims to “spur sustained and inclusive growth and job creation through increasing physical and human capital investment, as well as tackling regulatory barriers in land, labor and capital markets.” Under DPL 3, the Philippines will receive support in the following: strengthening priority public investments; reducing the cost of doing business that could translate to more businesses and more jobs; developing the human capital of the poor; and promoting fiscal transparency and good governance. The DOF said the activities that will be funded by DPL 3 include infrastructure development and the streamlining of business-registration processes for micro, small and medium-sized enterprises. DPL 3 will also provide funding for the government’s efforts to develop its large human capital, promote transparency in government, enhance the tax-collection efforts and develop a fiscal riskmanagement strategy. “DPL 3’s strong focus on fiscal sustainability, infrastructure, human capital and good governance enables the Philippines to boost our inclusive growth agenda as we reach the tail-end of this administration. This is consistent with the Philippines’s partnership with the World Bank in ensuring our economic turnaround story translates into real and sustainable gains for the Filipino people,” Purisima said in a statement. While the DOF serves as the main liaison with the World Bank on budget support operations, other departments will also help in the monitoring, evaluation and implementation of the foreign-funded projects of the bank.

www.businessmirror.com.ph

Emerging Asia discovering the happiness that money can buy

merging Asian nations are finding out what developed ones did years ago: Money—and the stuff it buys—brings happiness, or at least satisfaction. Levels of self-reported well-being in fast-growing nations like Indonesia, China and Malaysia now rival those in the US, Germany and the United Kingdom, rich nations that have long topped the happiness charts, according to a Pew Research Center global survey released on Friday. It says it shows how rises in national income are closely linked to personal satisfaction. The pollsters asked people in 43 countries to place themselves on a “ladder of life,” with the top rung representing the best possible life and the bottom the worst. Pew carried out the same survey in 2002 and 2005 in most of those countries, enabling researchers to look at trends over time. But the data also suggested that there is a limit to how much happiness money can buy. For example, 56 percent of Malaysians rated their life a “seven” or higher on the ladder, significantly more than the 36 percent in Bangladesh, a poor country. Yet, the public in Germany, which has far higher gross domestic product per capita than Malaysia, expressed a life-satisfaction level of 60 percent, just 4 percentage points more than Malaysia. While wealth appears to contribute to happiness, other research has indicated it is far from the only factor. Women tend to be happier than men, for example, and unmarried and middleaged people tend to report lower levels of well-being than married and younger people, respectively. The Pew survey results, which were based on 47,643 interviews in 43 countries with adults 18 and older between March and June, also found that people in emerging and developing economies prioritize a few essentials in life, including their health, their children’s education and safety from crime. Fewer people in those economies said Internet access, car ownership, free time or the ability to travel is very important in their lives. The survey saw significant gains in personal satisfaction in Indonesia, where 58 percent of those polled placed themselves on the seventh-highest rung of the “ladder of life” or above, up from 23 percent in 2007, and Malaysia, where 56 percent put themselves in that same upper range, up from 36 percent seven years ago. In Vietnam, which wasn’t included in the 2007 survey, 64 percent said they were on the seventh-highest rung or above. The Associated Press asked people in those three nations what they thought of the findings.

VIETNAM

“Money can’t secure happiness,” said Nguyen Thi Mai, a 66-year-old retired teacher, as she was relaxed on a bench overlooking scenic Hoan Kiem lake in central Hanoi. “There are people who don’t have any money but they lead a happy life because family members love and respect each other. But there See “Emerging Asia,” A2

Fed actions cited as US economy grew 3.5% in Q3 Continued from A1

—the economy’s total output of goods and services—added to evidence that the Fed’s efforts have translated into robust job growth and a recovery that appears to be solidifying. The third-quarter expansion was propelled by solid gains in business investment, exports and the biggest jump in military spending in five years. It followed a 4.6-percent annualized expansion in the second quarter, which marked a dramatic turnaround from the first three months of the year, when a harsh winter depressed activity. Many economists say they’re confident that the current October-to-December quarter will be another solid one. They also project that full-year growth for 2015 will hit 3 percent, giving the economy the best annual performance since 2005, two years before the Great Recession began. “The economy does appear to be accelerating of late,” said Dan Greenhaus, an analyst with investment firm BTIG.

Greenhaus added that the GDP report showed an economy “on a sounder footing today than at any time over the last few years.”The US landscape stands in contrast to other big economies of the world. Japan’s GDP contracted at an annualized rate of 7.1 percent in the April-to-June quarter. Germany, Europe’s traditional growth engine, risks falling into recession—or growth so weak it holds back the entire euro currency union’s weak recovery. The French economy posted zero growth in the first two quarters of the year and has revised down its growth forecasts for the year to a paltry 0.4 percent. Momentum is decelerating even in China, which has posted blistering figures in recent years. Growth in the world’s No. 2 economy waned to a five-year low of 7.3 percent in the third quarter, though the result falls roughly in line with Chinese leaders’ plans for a controlled slowdown. AP