BusinessMirror May 28, 2016

HOURS after effectively clinching the Republican presidential nom-ination, Donald Trump vowed on

Thursday to withdraw the United States from the historic Paris Agreement among 195 nations to cut greenhouse-gas emis-sions in an effort to stop global warming. Trump, who has often dismissed the science on climate change as a hoaxthat threatens American jobs, promised to cut all US spending on United Nations programs on global warming. Speaking at an oil and gas industry conference in Bismarck, North Dakota, he laid out an energy agenda that would rely heavily on fossil fuels, and rescind Obama ad-

ministration regulations aimed at ad-dressing climate change.

“In a Trump administration, politi-cal activists with extreme agendas will no longer write the rules, because that’s what’s happening now,” Trump said. Trump’s energy speech came shortly after The Associated Press reported that a handful of unbound delegates had agreed to back him at the Republi-can National Convention in July, giving him one more than the 1,237 delegates he needed to win the nomination. “North Dakota, you brought us over the line, folks, and I will always remem-ber that,” Trump said, as he pointed to

his delegates in the audience. On Insta-gram, Trump posted a photo of himself celebrating on his private jet with a Mc-Donald’s burger and fries.

At a news conference just before the speech, Trump struck back at Obama for telling reporters in Japan on Thurs-day that world leaders were rattled by Trump’s ignorance of world affairs and cavalier attitude. “If they’re rattled in a friendly way, that’s a good thing,” said Trump, who has often accused China, Mexico and Japan of ripping off America in what he describes as rotten trade deals.

S “E N,” AS “T,” A

PESO EXCHANGE RATES n US 46.6650 n JAPAN 0.4252 n UK 68.4856 n HK 6.0086 n CHINA 7.1137 n SINGAPORE 33.9777 n AUSTRALIA 33.7155 n EU 52.2461 n SAUDI ARABIA 12.4473 Source: BSP (27 May 2016 )

A broader look at today’s businessBusinessMirrorBusinessMirrorBusinessMirrorMEDIA PARTNER OF THE YEAR

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www.businessmirror.com.ph n Saturday, May 28, 2016 Vol. 11 No. 231 P. | | 7 DAYS A WEEK

Polls renewed biz confidence in Q2

INSIDE

Trump clinches GOP nomination

MORE THAN 4,000 REFUGEES RESCUED IN SINGLE DAY

CONGRESS ENDSCANVASS OF VOTESFOR PRESIDENT, VP

“I THINK he has touched a part of our electorate that doesn’t like where our country is. I have no problem supporting Mr. Trump.”—Oklahoma GOP Chairman Pam Pollard, as Donald Trump sewed up the number of delegates needed to clinch the Republican presidential nomination. Story below. AP

“WE know that terrorist organizations would have no compunction about using a weapon of mass destruction if they got their hands on it, so we’ve got a lot of work.”—US President Barack Obama, on the eve of his historic trip to Hiroshima, addressing the threat posed by the proliferation of nuclear weapons. AP

“THE music, unfortunately, oftentimes celebrates violence, celebrates degradation of women, celebrates the drug culture.”—New York Police Commissioner William Bratton, blaming gun violence at a packed concert in Manhattan on the hip-hop culture. Four people were shot, one fatally. AP

WORLD B23

20 bodies were spotted as a migrant boat sank off the coast of Libya on Thursday. In 2015 more than 1 million migrants arrived to new destinations by crossing the Mediterranean Sea. Here’s a look at the current refugee crisis

Jan.Feb.Mar.Apr.MayJun.Jul.

Aug.Sep.Oct.Nov.Dec.

Children Women Men

Source: UN Refugee AgencyGraphic: Tribune News Service

Monthly sea arrivals

Demographics (2016)

35% 20 45

Syria

Afghanistan

Iraq

Pakistan

Iran

Top 5 nationalities of Mediterranean sea arrivals

41%

21

13

3

2

Mediterranean migrants

1,380 dead / missing

Arrivals by sea in 2016194,845

0 50k 100k 150k 200k 250k

2015

2016

HISTORIC VISIT US President Barack Obama and Japanese Prime Minister Shinzo Abe shake hands after laying wreaths at the cenotaph at the Hiroshima Peace Memorial Park in Hiroshima, western Japan, on Friday. Obama became the first sitting US president to visit the site of the world’s first atomic-bomb attack, bringing global attention both to survivors and to his unfulfilled vision of a world without nuclear weapons. Story on World B3-1. AP/CAROLYN KASTER

B B C @BcuaresmaBM

LOCAL businesses were found to be more optimistic of the country’s economic prospects,

despite the uncertainty brought about by the change in the seat of power in the Philippines.

The latest results of the Central Bank’s quarterly Business Expectations Survey (BES) showed business outlook on the economy was more bullish for the sec-ond quarter of this year—notably during the height of the country’s election period.

The Bangko Sentral ng Pilipinas (BSP) said the overall confidence index (CI) of firms surveyed in the country rose to 48.7 percent for the second quar-ter of the year, up from the 41.9 percent for the first quarter of 2016. The CI is computed as the percentage of optimistic firms minus the percentage of pessimistic firms on the local economy. A higher CI means the number of

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After El Niño, DA prepares for La Niña

B M G P @_enren

FOLLOWING projections of La Niña coming in at the last quarter of the year, the Department of Agriculture (DA) said it is already starting the initial

preparations to help farmers deal with the effects of the weather phenomenon. 

Philippine Atmospheric, Geophysical and Astronomical Services Administration’s (Pagasa) Climate Monitoring and Prediction Section Chief Anthony Lucero said there is a 50-per-cent chance of La Niña’s developing after the onslaught of El Niño in the country. “Right now, there is a 50:50 chance of La Niña hap-pening. We will know for sure in July,” Lucero said in a phone interview.

La Niña is characterized by the cooler temperature in the Equatorial Pacific, and is associated with above-normal rainfall levels. The expert said that in three out of four cases where a strong El Niño occurs, La Niña follows.  “This means there is a strong possibility that La Niña may occur after El Niño,” Lucero said.

B J M N. C @joveemarie

THE 16th Congress, sitting as the National Board of Canvassers (NBOC), on Friday ended its official canvassing of votes for president and vice presi-

dent, and eyeing to proclaim the winners by next week.  According to the official tally of the NBOC, Rodrigo R. Duterte got 16,601,997 votes; followed by Manuel A. Roxas II with 9,978,175; Grace Poe with 9,100,991; Jejo-mar C. Binay with 5,416,140;  Miriam Defensor-Santiago with 1,455,532; and Roy V. Seneres Jr. with 25,779.  

For vice president, Maria Leonor Robredo got 14,418,817 votes; followed by Ferdinand R. Marcos Jr. with 14,155,344;  Alan Peter S. Cayetano with 5,903,379; Francis G. Escudero with 4,931,962; Antonio V. Trillanes IV with 868,501; and Gregorio B. Honasan with 788,881.   

After the official canvassing, House Majority Leader and Liberal Party Rep. Neptali M. Gonzales II, cochair-man in the joint canvassing committee, said the NBOC secretariat will draft a joint canvassing report, which will be approved separately by the House of Represen-tatives and the Senate in a joint session.

PHILIPPINE House and Senate election tribunal staff members prepare the tally board prior to the start of the official count of votes in the lower house in Quezon City. AP/BULLIT MARQUEZ

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If La Niña does develop, he said the Philip-pines would feel its full impact by November 2016 to February 2017. He also warned those provinces lying along the Eastern coast of the country—including Quirino, Isabela, Quezon, Bicol region, Samar, Leyte, Surigao, Agusan, Compostela and Davao Oriental—may be the most vulnerable during that period.

Heeding this warning, DA Field Operations Service Director Christopher Morales told the BusinessMirror the agency, particularly the national rice and corn programs, along with the DA’s regional coordinators, has already started to plan its possible interventions.

“Last week we conducted an operational planning workshop with our National Rice and Corn Program coordinators nationwide to strategize and schedule our interventions [to mitigate the effects of the possible La Niña],” Morales said.

It was then decided that planting for the wet cropping season (particularly in Central Luzon) should commence by May until the second week of June so farmers can already harvest by Sep-tember, before the onset of La Niña.

“It is already the start of the planting sea-son, so some farmers have already started planting this May. But there are areas that have only started preparing their land as they’ve only just started experiencing rains,”

Morales said. “The latest, if some areas end up planting late, should be by early June. There’s a high risk of damage if farmers plant later than June.”

 The DA, he said, has enough buffer stocks on seeds and planting materials.

He said the DA is advising farmers to use flood-tolerant varieties to minimize dam-age caused by heavy rains and flooding. The agency can also withdraw some seeds and planting materials stocked for the next plant-ing season in advance if needed, he said.

Most important, strict coordination with other national agencies, particularly the Pag-asa, will also be crucial in the agency’s miti-gation efforts, Morales said.

 Morales said this will ensure the DA is kept up-to-date with the latest weather fore-casts, which will help the agency plan out its interventions and provide advisories to farm-ers, such as when to plant or when to harvest their crops.

 Though faced with the possibility of La Niña, Morales said the DA has not yet de-cided to propose for additional budget from the national government.

  “Right now, we are working with our regular budget. We have also received about P450 million as replenishment for our Quick Response Fund, which has already been fully utilized for rehabilitation efforts af-ter Typhoons Lando and Nona, as well as El Niño. We can tap that,” he said. The decision to implement other inter-

ventions, as well as the request for additional budget, may be left to the next administra-tion, Morales said.   “There will be a transi-tion meeting with the incoming agriculture administration next week. One of the worries of Manny Pinol is the possible devastation by La Niña, so it will most likely be discussed,” he said.

Meanwhile, the field operations director said the DA has not yet projected the possible extent of damage La Niña may cause to the agriculture sector.

 “It’s hard to predict. There are many fac-tors that we need to consider, such as the amount of rainfall and the period it will hit,” Morales said.

  Meganomics Specialists International Inc. President Pablito M. Villegas said the possible La Niña episode may have a negative impact on the growth of the agriculture sector.

  “What’s important, though, is the kind of climate resiliency mechanism the govern-ment will implement,” he added.   Philippine Institute for Development Studies Senior Research fellow Roehlano Briones remained positive La Niña’s impact on the agriculture sector may not be as ex-tensive as El Niño’s.

 “There’s not much production going on in the Eastern coast of the country, relative to other parts of the Philippines. So I think the effect will be much less than El Niño, which tends to occur over a very broad area,” Briones said.

“This is now being addressed by the DENR [Department of Envi-ronment and Natural Resource] in the regions,” Director Ricardo L. Calderon of the DENR’s Forest and Management Bureau (FMB) told the BusinessMirror in an interview.

Calderon said there is also a

resurgence of illegal-logging opera-tions in the Cordillera Autonomous Region, and Infanta and Real towns in the province of Quezon.

The observation was based on reports coming from the regions in April, May and June last year. “Based on their confiscation of

illegal logs [‘hot logs’], there are emerging problems on illegal log-ging in those areas,” Calderon said.  According to Calderon, the DENR-FMB has recommended that con-cerned agencies sustain their anti-illegal-logging operations in those areas to prevent the illegal activities.

“They have been directed to intensify the anti-illegal-logging campaign in the area.  We have in-structions sent to concerned DENR field offices,” Calderon said. Hot logs are logs harvested from natural forests, an act prohibited by Executive Order (EO) 23, which imposes a nationwide log ban on natural and residual forests.

Under the policy, only logs that are harvested from established

forest plantations under EO 26, which established the National Greening Program (NGP), or forest plantations run by the pr ivate sector w it h per m its are allowed to be processed for various uses. The DENR confiscates logs even from sawmills that fail to show proper documentation of the logs they process. The DENR-FMB is seeking a P700-million budget for the implementa-tion of the National Forest Protection Program, which is basically aimed at enforcing the law against destruc-tive activities, such as illegal-logging activities, in the country’s natural and residual forests. Under the Aquino adminis-

tration, Environment Secretary Ramon J.P. Paje said the number of illegal-logging hot spots went down to 23 by the end of 2015, from 197 identified illegal-log-ging hot spots in 2010.

During the period, illegal logs confiscated were donated to the Department of Education and were used to repair school buildings, manufacture of school chairs and other school furniture.

Based on DENR records, a total of 28.5 million board feet of un-documented wood products have been confiscated from  2010 to September 2015. Most of the seized logs have been converted into essential school fur-nitures, like armchairs and desks,

through the P-Noy Bayanihan Project, for use in public elemen-tary and high schools. Since 2011, more than 146,000 pieces of school furniture have been produced and 369 school buildings have been repaired using seized timber products.

Paje said the enforcement of EO 23 resulted in the filing of 1,370 cases in court and the conviction of close to 200 individuals.

The success of the anti-ille-gal- logging campaign was partly attributed to the successful imple-mentation of the NGP, in which a total of 1.35 million hectares of open, degraded and denuded for-ests have been rehabilitated as of December 2015.

[email protected], May 28, 2016A2

BMReportsB J M @jonlmayuga

ILLEGAL-LOGGING syndicates are back in business in Southern Mindanao and the Caraga

regions, the country’s top forestry official said.

Illegal-logging syndicates back in business

Polls renewed biz confidence in Q2

Trump accused Obama of doing “a horrible job.” “He shouldn’t be airing what he’s airing where he is right now,” Trump said.

Looking ahead to the general election, Trump struck an aggressive posture, saying a newly released State Department inspector general’s report faulting Hillary Clinton’s use of a private e-mail server, while she was secretary of State was shocking and devastating. “This was all bad judgment, probably illegal,” he said. “We’ll have to see what the FBI says about it.”

In response, Clinton called Trump an “unqualified loose cannon.” “He’s talking about breaking up our alliances, letting more countries get

nuclear weapons, banning all Muslims from coming to America,” she said. “That is a recipe for fewer friends and more enemies, and it will make us

less safe.” “This is not a reality show,” she added. “It’s not just politics. It’s really serious. The entire world looks to the United States for leadership and stability.”

Intruding into the Democratic contest, Trump said at his news conference that he would be willing to debate Clinton’s Democratic rival, Vermont Sen. Bernie Sanders, but only if the event could raise $10 million to $15 million for charity, such as women’s health groups.

“I think it would get very high ratings,” he said. “It should be in a big arena somewhere, and we could have a lot of fun with it.” Trump also made light of the suggestion that it was offensive to use the nickname “Pocahontas” for Massachusetts Sen. Elizabeth Warren, who has identified herself as part Native American. Warren is a fierce critic of the New York business mogul.

“Is it offensive? You tell me,” Trump said to a reporter. “Oh, I’m sorry about that.” “I think she’s as Native American as I am, OK? That I will tell you,” he said. “But she’s a woman that’s been very ineffective, other than she’s got a big mouth.” LA Times /TNS

optimists increased and continued to be greater than the number of pessimists during the period.         The central bank said respondents were more upbeat in the second quarter due to election-related spending in the run-up to the national elections, sustained increase in orders and prospects leading to higher volume of production, and the anticipated increase in demand during summer due to the influx of tourists.

The enrollment period, the intro-duction of new and enhanced business strategies and processes, the expansion of businesses and new product lines, and the improving conditions in the local economy, as well as in some advanced economies also helped push business sentiment up during the period.

“Their more positive outlook was further driven by expectations of more favorable macroeconomic conditions in the country—particularly low inflation

and stable interest rates—and sustained foreign-investment inflows,” the central bank said. “The sentiment of businesses in the Philippines mirrored the improving busi-ness outlook in South Korea, Canada, France and the Netherlands, but was in contrast to the deteriorating views of those in the US, the United Kingdom, Ger-many and China and Australia,” it added.         Across sectors, the services sector was the most optimistic among all sec-tors for the second quarter of the year. Construction, meanwhile, turned less favorable. The outlook of firms in the wholesale and retail trade sector, as well as industry firms, was also more upbeat for the quarter.

For the third quarter, business outlook was less optimistic due to the interrup-tion of business activities during the rainy season, lower consumer demand as house-holds prioritized enrollment expenses and expectations of higher oil prices.

“Assuming that we finish all these certificates of canvass Friday and assuming that the NBOC secretariat will work on the repor t this Saturday and Sunday, we can proclaim the winners Monday at the earliest,” Gonzales said.

Under the Rules for the Canvassing, the joint canvassing committee shall prepare a report on the canvass for submission to the joint public session.

The joint committee report shall be approved by a majority vote of all its members, each panel voting separately. The committee report shall be signed by the majority of the members of each panel.

The rules also said the committee report. shall be presented to the joint public session for its approval. The report will be accompanied with a “Resolution of Both Houses” declaring the results of the canvass and proclaiming the president-elect and vice president-elect.

Upon the adoption of the resolution, the Senate President and the Speaker shall proclaim the president-elect and vice president-elect.

As of press time Friday, the joint panel has finished canvassing at least 145 certificates of canvass (COCs) out of 165 COCs.

El Niño. . . C A

Congress. . . C A

Trump. . . C A

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ERC tightens rules on DU, RES operations in power retail market

B L L @llectura

THE Energy Regulatory Com-mission (ERC) has issued rules imposing restrictions on the

operations of distribution utilities (DUs) and retail electricity suppliers (RES) in the competitive retail elec-tricity market.

Resolution 11, Series of 2016, stated four rules aimed at provid-ing safeguards in order to promote competition and prevent harmful monopoly and market power abuse.

First, no DU shall engage in the supply of electricity to end users in the contestable market unless such supply is made in its capacity as a supplier of last resort (SOLR).

The ERC explained that SOLR happens when customers stop re-ceiving supply from their RES.

Second, all local RES or DUs that are currently engaged with the supply of electricity to end users in their respective franchise areas shall wind up their business within three years from the effectivity of the said resolution.

Existing retail supply contracts (RSCs) entered into with their re-spective contestable customers shall remain valid until the expi-ration of said contracts subject to the winding down period.

Accordingly, no new RSCs shall be signed and executed after the ef-fectivity of the resolution. Likewise, renewal of RSCs are also not allowed.

Third, no RES shall be allowed to supply more than 30 percent of the total peak demand of all contest-able customers in the retail market. The ERC will determine the level of demand on a quarterly basis. This would be posted every 30th of the month following the quarter.

Fourth, no RES shall be allowed to transact more than 50 percent of its total energy transactions of its supply business with its affiliate contestable customers.

The RES shall be given two years from December 26 to comply, the ERC said.

The ERC, it added, within 18 months from implementation of the first phase of mandatory con-testability, conducts a continuous review and monitoring of the mar-ket conditions.

GOLD MEMBERS Puregold Price Club Inc. Vice Chairman Susan Co (eighth from left) leads the awarding of top members of Tindahan ni Aling Puring (TNAP) loyalty program during the 11th TNAP Convention on May 20 at the World Trade Center in Pasay City. Also in photo are Puregold President Vincent Co (sixth from left) and popular actor John Lloyd Cruz (ninth from left).

[email protected] Editors: Vittorio V. Vitug and Max V. de Leon • Saturday, May 28, 2016 A3BusinessMirrorEconomy

THE Canadian province of Brit-ish Columbia has opened a trade and investment office in

the Philippines, its first in the Asean region, hoping to double trade growth and promote two-way investments.

British Columbia Premier Christy Clark is in the country, with a trade delegation of businesses engaged in health care, education, medical tech-nology and pharmacy, agri-food and clean technology. 

The Philippines is the second stop in the premier’s three-country trade mission, with the Philippines having been selected in the British Columbia’s  Jobs Plan as a priority market, given Manila’s rapid eco-nomic growth in recent years.

“This is one of the fastest-grow-ing economies in the world, we want to be here,” Clark said.

“We want to see our trade grow

significantly and there’s an opportu-nity to double that growth over the next several years, quite easily with this trade office here,” she added. 

British Columbia businesses will be meeting with top Philippine corpo-rations, such as Jollibee Foods Corp. and Ayala Corp., to explore opportu-nities.  The Canadian province has already inked five agreements on the occasion of its launch on Thursday: 

Australian firm Incognito Soft-ware Inc. has signed a contract for software sale with telecommunica-tions giant Globe Telecom; North Island College of British Columbia’s memorandum of understanding with the Center for International Education’s School of Business and Technology in the Philippines; PharmaCanada and Hi-Precision Diagnostics’ distribution agree-ment for lung-cancer screening and

diagnostics technology; and seper-ate agreements of the University of British Columbia with De La Salle University and the University of the Philippines for student exchange programs.  Among  province’s most significant investments to date in the Philippines include Aquilini Mactan Renewable Energy Inc.’s clean-ener-gy project and metal exploration firm B2Gold Corp.’s gold production and exploration in Masbate. 

According to state the Statistics Canada and International Trade Cen-tre, the province of British Columbia takes the largest share of Canadian exports to the Philippines: it has a 26-percent share of the total Cana-dian export value of $731.6 million traded in 2015, translating to $190 million worth of exports originating from British Columbia.

Catherine N. Pillas

British Columbia opens first Aseantrade, investment office in Manila

A COALITION of agriculture stakeholders on Thursday hailed the signing of Re-

public Act (RA) 10845, or “An Act declaring smuggling of agricultural commodities as economic sabotage.”

“The agriculture industry has long lobbied for the passage of this act, as we believe that this would serve as an effective deterrent to smuggling of agricultural commodi-ties products that have greatly im-pacted on the livelihoods of millions of agricultural producers, especially in the last six years,” Rosendo So, chairman of the Samahang Indus-triya ng Agrikultura (Sinag), said.

“Now, smugglers and their co-horts at the Bureau of Customs [BOC] and the Department of Agriculture [DA] will think twice, given the harsher penalties and nonbailable provisions of the law on suspected smugglers,” he added.

Sen. Cynthia Villar, chairman of the Senate Committee on Agriculture and Food, said the new law boosted the campaign against smuggling, which, she said, continues to threaten the livelihood of farmers, as well as the food security in the country.

“With this measure now enacted, we have a better shot at curbing the perennial problem of smuggling in the agriculture sector. Harsher pen-alties are now imposed to serve as deterrent to smuggling activities,”

she said.  The Nacionalista Party senator also expressed optimism that the process of prosecution will largely improve, with smuggling now a nonbailable charge.

According to So, smuggling has flourished and continues to thrive, but “we are hoping that this new anti-smuggling law will comple-ment the commitment of President-elect Rodrigo R. Duterte to combat smuggling.”

Under the new law, the amount of smuggled agricultural product sub-ject to economic sabotage is equal or more than P10 million for rice, and equal or more than P1 million for other agricultural products, such as sugar, corn, pork, poultry, garlic, onion, carrots, fish and cruciferous vegetables. Smugglers and their co-horts will also face a penalty of life imprisonment and a fine of twice the fair value of the smuggled agri-cultural product and the aggregate amount of the taxes, duties and other charges avoided.

According to Sinag, RA 10845 is the fruit of the collective endeavor, painstaking effort and vigilance in the last three years of the whole agriculture industry, with the sup-port of Villar, Sen. JV Ejercito and Party-list Rep. Conrado Estrella III of Abono.

In the last five years, Sinag said, close to P200 billion worth of agri-

cultural goods were smuggled into the country.

A Sinag report also showed that rice, with a market value of P94 bil-lion, is the single biggest agricultural commodity being smuggled into the country. This was followed by pork at P40 billion, then sugar at close to P25 billion. Other commodities monitored by Sinag include chicken, garlic, onion and carrots. The same report also revealed that from 2004 to 2009, smuggling of the same ag-ricultural commodities reached only P94 billion, less than half of the smuggling haul from 2010 to 2014.

According to the group, a market value of P200 billion translates to around P60 billion to P80 billion in lost revenues for the government, since these agricultural commodi-ties are supposed to be protected and levied a higher tariff of 30 percent to 40 percent.

Sinag said the common fight against smuggling was to prevent the further erosion of farmers’ live-lihoods, smuggling of agricultural products endangers the survival of the agriculture industry, which is the very fiber of Philippine society.

Smuggling, according to Sinag, also exposes the country to unsafe and high risk agriculture and food products as smuggled goods do not pass quarantine and food safety in-spection. PNA

B D C @davecaga

SIX out of the seven commis-sioners of the Commission on Elections (Comelec) have

signed an internal memorandum urging Comelec Chairman Andres D. Bautista to effect the payment of honorarium to the public-school teachers who served as Board of Election Inspectors (BEIs) in the May 9 presidential elections almost three weeks ago.

A highly placed source in the Comelec said complaints had been mounting from even within the com-mission because of the delay in the payment of the honorarium, which is a function of the field operations group directly supervised by Bau-tista himself.

On Thursday party-list group Alliance for Concerned Teachers-Philippines picketed at the Comelec to appeal for the immediate pay-ment of honorarium to the BEIs, and reported that at least 100,000 BEIs are verified to have not yet re-ceived the honorarium amounting to P6,500 each.

This number represents about one-fourth of the total number of teachers who served as BEIs during the last presidential elections, sug-gesting that the complaints of non-payment are not isolated glitches in the new scheme of paying the BEIs.

The regional director of the Comelec in Central Visayas said the regional office had received many complaints from the teachers that the cash cards distributed to them had no funds, or did not work at all.

“Kindly please be informed that until now most of the election of-ficers in this region and in Region 8 have not released the cash cards they have received for fear of being embarrassed once the BEI will have their honorarium withdrawn from the bank. The reason for this is that, in cases where there were releases of cash cards to the BEIs, the account contains no cash,” Region 7 Director Nick Mendros in a letter to Bautista dated May 16.

Mendros added that election of-ficers tried to accompany the BEIs to the automated teller machines to ensure the correct procedure in withdrawing the honorarium will be followed, but the result would be the same—that the account con-tains no cash.

“Such situation is compounded when the BEI is from a far-flung place, where he has to spend for his transportation only to find out that his honorarium is still not available. These series of problems greatly manifest that the cash-card system of payment is a failure, unnecessarily exposing our field officers to embar-rassment and humiliation,” he added in his letter.

Mendros explained that the new scheme of paying the BEIs through cash cards issued by the Land Bank of the Philippines appears to have been conceived to prevent election officers from misappropriating the money allocated for the payment of the honorarium.

But he said these instances of nonpayment of honorarium due to misappropriation by the election of-ficers are isolated transactions, and thus, appealed to Bautista to revert to the previous process of paying the BEIs, which had worked efficiently in the past.

“In view thereof, it is most re-spectfully prayed that payment of honorarium to the BEIs be made by cash advances of the election offi-cers, and that a policy be adopted imposing higher administrative penalty to election officers who will fail to pay the BEIs or who will delay the payment thereof de-spite receipt of the cash advance,” Mendros said.

Comelec commissioners press Bautista to ensure honorarium payment to BEIs

Villar, agriculture stakeholders laud new anti-smuggling law

B J M N. D C @joveemarie

A LAWMAKER on Friday asked incoming Presi-dent-elect Rodrigo R.

Duterte to include in his priority measures the bill legalizing the use of marijuana for medicinal purposes.

Partido Demokratiko Pilipino-Lakas ng Bayan Rep. Rodolfo D. Albano III of Isabela, author of the bill during the 16th Congress, said the bill would provide accessible, affordable and safe medical can-nabis to patients with debilitating medical conditions.

Albano said he will refile the bill when 17th Congress convenes this July. He filed House Bill 4477 in the 16th Congress, but it was not acted upon.

Under the Compassionate Use of Medical Cannabis bill, there shall be legalized and reg-ulated use of cannabis for medi-cal purposes. It establishes un-der the Department of Health a Medical Cannabis Regulatory that will regulate cannabis’s medical use.

The authority shall issue regis-tered identification cards to quali-fied patients after a careful review of the documents required by the authority and included in the im-plementing rules and regulations of this Act.

An entity shall operate as a Medical Cannabis Compassion-ate Center (MCCC) after approval of its application and registration with the authority.

The MCCC shall guarantee the appropriate dispensation of cannabis and shall not release more than the prescribed dosage for one month to a registered qualified patient or designated caregiver.

“I have high hopes under the Duterte administration that this measure would be enacted into law. Finally, there is hope for our people, especially our children, who suffer from medical condi-tions, like epilepsy, cancer and multiple sclerosis,” Albano said in a news statement. 

Duterte was earlier quoted as saying in media reports that he will support the medical marijua-na proposal. 

“Medical marijuana, yes, be-cause it is really an ingredient of modern medicine now. There are medicines right now being devel-oped or already in the market that [contain] marijuana as a compo-nent but used for medical purpos-es,” Duterte said.

Moreover, Albano said marijua-na “has been confirmed to have beneficial and therapeutic uses to treat chronic or debilitating dis-ease or medical condition.”

“These include cachexia or wasting syndrome; severe and chronic pain; severe nausea; sei-zures, including but not limited to those characteristic of epilepsy; and severe and persistent muscle spasms, including but not limited to those associated with multiple sclerosis,” Albano, Duterte’s party mate, said.

Solon revives bill legalizing medicinal use of marijuana

BAUTISTA

ALBANO

Saturday, May 28, 2016 •Editor: Angel R. Calso

OpinionBusinessMirrorA4

PHL inflation: ‘I will be back’

editorial

IN January 2015 the headline of a Fortune magazine article read, “The world’s biggest winners and losers from cheap oil, in one chart.” Oh, those were certainly great times as evidenced by the opening sentence:

“The Philippines is going to crush it.”

HOM

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IN the interest of furthering “financial literacy” and a greater understanding of the financial and hard-asset markets, here is today’s question.

When is the Philippine bubble going to burst?

Which of the following is true: “High asset prices are the result and reflection of economic pros-perity” or “Economic prosperity is the result and reflection of high asset prices”? We will get back to the answer later.

The markets must always be viewed in the current context, and that can only be done if you have an historical perspective. That is why it is difficult to interpret what govern-ment economic data is saying. Every time the GDP numbers are released, there is a debate about whether this genuinely reflects the performance of the economy.

The problem with the GDP is that it can easily be manipulated for po-

litical purposes. But that is not the point. Over time, if the GDP uses the same factors, it gives us a snapshot of the economy at different times that should be comparable.

During the first quarter of 2016, the Philippine GDP grew 6.9 percent from the first quarter of 2015. In 1988 the Philippine GDP grew 6.8 percent over 1987. But what is the “current context”?

In 1988 the agricultural sector contributed at least twice as much to the GDP as today. At that time, 45 percent of the labor force was employed in agricultural production. Today that percentage is 30 percent. Theoretically, you could say that the 1998 GDP growth was better for the

rural farming class because they made more contribution to, and therefore, had more participation in the economic growth.

You could also make the argu-ment that the large drop in agricul-tural employment is because of these people moving to better-paying em-ployment. Maybe these former agri-cultural workers are now employed in the provincial shopping malls and even call centers, which did not ex-ist in 1988.

If that all sounds like intellectual or academic nonsense, you are ab-solutely right, as is true with most discussions about economics.

Remember three years ago, when the “bubble” experts were confi-dently predicting that the Philippine stock market would probably crash and that the economy was unques-tionably headed for disaster?

Their answer to the question I asked earlier is that asset prices go higher because of more economic prosperity. People get richer and then can afford to buy more expen-sive houses and more expensively priced stocks. That is what history shows us.

But the “current context” for the

past 20 years is the opposite that “higher asset prices” is the reflec-tion of economic prosperity. This is “bad,” since we know that people can buy expensive stuff without having the personal economic prosperity, thanks to money lenders.

The largest home-loan lender in the US—Wells Fargo Bank—is now offering mortgages with a 3- (yes, 3) percent down payment. That will raise the demand and prices for housing, thereby “proving” there is greater economic prosperity.

Except that is not true for the Philippines, which makes us differ-ent and better, and also the reason the economy keeps rolling higher as will the stock market.

In the Philippines the answer is the second one, where rising prices reflect economic prosperity. That is why we are not in any stock-market or economic bubble. Buy the Philip-pine economy. Buy the Philippine stock market.

E-mail me at [email protected]. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market in-formation and technical analysis tools provided by the COL Financial Group Inc.

OUTSIDE THE BOXJohn Mangun

EACH party is on track to nominate the only candidate who could possibly lose the election to the other. In the latest Wash-ington Post-ABC poll, a sizable majority of Americans consid-

ered Donald Trump unqualified to be president. But Hillary Clinton is so unpopular that they still preferred Trump to her.

The projection was that the Philippines would have the most benefit of all the nations on planet Earth, with low oil prices raising economic growth by nearly 2 percent for the year. Granted, the 17-page spread-sheet authored by Oxford Economics did say that oil would have to move below $40 per barrel. At that time, crude oil was trading at $50, having come down from $100 the previous June 2014.

By December 2014, the price of oil did move to below $40, hitting a low on January 10 at less than $29. However, since that low, oil prices have moved steadily higher and broke above $40 two months ago. Now the oil price is bumping around $50 a barrel, up 25 percent from the $40 key price and more than 70 percent from the 2016 low.

While it is virtually impossible to calculate accurately, it is probable that the low price of oil added to the first-quarter Philippine econom-ic-growth numbers. The question now is, what will happen with oil trading at $50?

American Benjamin Franklin said there were only two things certain in life: Death and taxes. He might have added that Philippine economic growth runs opposite to the inflation rate; more inflation equals less economic growth and vice versa.

While there may be a time lag between the turning points of the Philippine inflation rate and turning points of economic growth, the correlation is more than coincidental. You can chart the pattern back 50 years. Peak inflation in 1975 came as the country experienced an economic growth low. That happened again in 1983 and 1992.

More recent turning points, both positive and negative, for economic growth occurred in 2005, 2007, 2009 and 2014.

The reason that the Philippines was to benefit so greatly from low oil prices is that our inflation rate is most dependent on oil prices—the lifeblood of all economies—than the other countries. Oil prices do not have government subsidies and every thing ultimate runs on oil prices.

Now we correlate Philippine inflation and oil price turning points. These came recently in 2005, 2007, 2009 and 2014.

The average retail price of unleaded gasoline in Metro Manila as reported by the Department of Energy has tracked this path. January 19, P37.10; February 16, P34.85; April 12, P38.30; and May 24, P41.20. Gasoline is up 18 percent from the February low. That is the potential inflation and the potential problem for economic growth.

Anxious Democrats are wonder-ing just how they should take him down. There are many possible lines of attack—but many of them come with drawbacks.

It might be tempting, for exam-ple, to portray Trump as a misogy-nist. But some liberals worry that doing so will compound Clinton’s deficit among men. Democratic strategist David Axelrod suggests that Clinton stay away from this criticism because it’s unnecessary: “I think the behavior that would drive women to react negatively to him is pretty evident, and you don’t need to make that the focus of your campaign.”

Clinton could attack Trump in-stead as a con man and a fraud. But the message may not be effective coming from her. Most voters don’t think she’s honest either, and think she, too, is looking out primarily for herself. Besides, she doesn’t need to

gain support from people who are being fooled by Trump; she needs to win over people who dislike him but dislike her, too.

Trump’s business record might not end up being as much of a liabil-ity for him as Mitt Romney’s was in 2012. Democrats said he had made a fortune by laying people off. While this was not exactly true, Romney never offered a simple explanation of the basis of his business to most Americans. Trump has: He builds things—creating jobs in the pro-cess—and then slaps his name on it. The creditors and customers he has stiffed might tell you the truth is more complicated than that, but it puts him in a good initial position.

Democrats will be strongly tempt-ed to attack Trump as a far-right ex-tremist. He has taken positions that lend themselves to this criticism: He said women should be punished for abortions, has a tax plan that would

slash taxes for rich people; and now opposes a ban on assault weapons. Attacking him this way would help Clinton win over supporters of Ber-nie Sanders. It’s a kind of campaign Democrats are familiar with running and to which Clinton would be able to bring real passion. (People may doubt her authenticity, but they know her hatred of what she labeled “the vast right-wing conspiracy” is genuine.)

But Trump is obviously not a con-ventional conservative, and wears all of his positions lightly. So a con-ventional left versus right campaign might not clinch the case for Clinton.

Her most powerful message against Trump might be a nonideo-logical one: His lack of knowledge, seriousness and impulse control make him too dangerous to put in the presidency.

That strategy would have room for many specific criticisms of him that fit within the overall message of his unfitness. Instead of presenting his $11-trillion tax cut as a typical right-wing scheme, for example, she could tie it together with his specu-lation about defaulting on the debt and suggest that he is far more reck-less than normal conservatives. (His encouragement of other countries to get nuclear weapons also illustrates this point.) And she would have to outsource some potential attacks to others. Calling Trump a “fascist,” for example, would make her rather than him look wild-eyed.

Clinton would be presenting

herself as the candidate of safety. This strategy has its dangers, too. One is that people will decide, as Trump Campaign Manager Paul Manafort says, that he “can fill the chair.” Another is that Clinton would also become the candidate of the sta-tus quo at a time most Americans are dissatisfied with it. But this might be a risk worth taking. Henry Olsen, a conservative election analyst at the Ethics and Public Policy Center, says: “She needs to be the candidate for the person who is not irretriev-ably committed to blowing up the system. And I don’t think there’s a majority of those people.” The fact that the incumbent president has a 51-percent approval rating in the same Washington Post-ABC poll that has Trump slightly ahead suggests that Olsen is right.

Americans already think she is qualified to be president and he isn’t. The path should, thus, be open for her to get them to follow the implica-tions of that thought. “I really think this is a race about temperament,” Axelrod says. “If I were a strategist on the other side of him, that would be the thing that I would work hard.”

My guess is that Clinton and her advisers will reach the same conclu-sion, and make Trump’s unfitness for the presidency the central message of her campaign. Her real meaning will not be explicitly spelled out, but will be unmistakable, nonetheless: You may not like either of us, but you should fear him.

How Clinton can demolish Trump

BLOOMBERGRamesh Ponnuru

Saturday, May 28, 2016

[email protected]

TODAY, May 28, Caritas Manila scholars under the Youth Ser-vant Leadership and Education Program (YSLEP) will gather at the San Carlos Seminary Auditorium, Guadalupe, Makati

City, for the 7th Annual Recognition.

Caritas Manila’s 7th  YSLEP Recognition Day

Rev. Bishop Honesto Ongtioco, DD, STL, bishop of Cubao.       

YSLEP is the flagship program of Caritas Manila, which extends financial assistance to poor but de-serving youth. The program trains and hones the youth not only for aca-demic excellence but also to become servant leaders and good members of the community.

To date, Caritas Manila has pro-duced over 10,000 graduates and continues to provide education-al assistance, values-formation workshop, and leadership train-ings to almost 5,000 students na-

tionwide, with an average of 300 college and technical/vocational graduates yearly.

Caritas Manila is the Archdio-cese of Manila’s lead social services and development ministry. Apart from YSLEP, Caritas Manila runs diverse projects that help the poor fulfill their human potential, such as the All Is Well Health Program, Restorative Justice Ministry, Caritas Damayan, and social entrepreneur-ship programs Caritas Margins and Segunda Mana.

To know more about YSLEP and other programs of Caritas Manila, visit  www.caritasmanila.org.ph. For your donations, call DonorCare lines 563-9311, 564-0205, 0999-7943455, 0905-4285001 and 0929-8343857.

To know more about Caritas Manila, visit www.caritasmanila.org.ph. For your donations, please call our DonorCare lines 563-9311, 564-0205, 0999-7943455, 0905-4285001 and 0929-8343857. Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph. For comments, e-mail [email protected].

SERVANT LEADERRev. Fr. Antonio Cecilio T. Pascual

YSLEP helps poor but deserving youth not only in terms of academic excellence but also molds them to become servant leaders in their com-munities. Today 216 youth servant leaders will be recognized for their academic and leadership excellence.

Sen. Paolo Benigno “Bam” Aquino, youngest senator of the 16th Con-gress, multiawarded youth leader and social entrepreneur, will be the keynote speaker. As an active sup-porter of YSLEP, he will inspire the graduates on how they can contribute in nation-building as servant leaders.

Actress, celebrity and Your Face Sounds Familiar Season 2 winner Denise Laurel will also take part in the event. Laurel donated half of her winnings to Caritas Manila.

A total of 625 scholars from Luzon, the Visayas and Mindanao graduated for AY 2015-2016. Two magna cum laudes and two cum laudes will share their sto-ries and experiences as youth servant leaders.

After the recognition program, a Eucharistic celebration will be presided by His Excellency Most

FORWARD MOVINGJemain Diaz de Rivera

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Addressing inequality as a development concern

DURING the past few years, inequality as a socioeconomic issue has moved to the front and center among the different global challenges around the world, and has, thus, captured

increasing attention among policy-makers, academics and develop-ment professionals. In much of the developing world, including the Philippines, there has been an increasing concern that economic growth would not be able to reduce, and may even exacerbate eco-nomic and social disparities.

EAGLE WATCHRandy Tuaño

B B R | Bloomberg View

IS alpha, the Wall Street term for market-beating returns, sustain-able? Or is it a unique, statistical outlier, indistinguishable from random chance?

If you’re such a great investor, where’s your alpha?

I have been thinking about this a lot lately. The relentless drum-beat of negativity about hedge funds, of which I am admittedly a contributor, is the underlying moti-vation for this line of thought. It has sent me on a hunt for those manag-ers who consistently create alpha.

They are few and far between. You likely know their names. There is a short list of those who have 1) outperformed; 2) over long periods of time; and 3) manage substantial sums of money. It’s impressive if you are on that list, but discouraging if you seek to invest institutional capi-

tal with this group.This isn’t a secret. Jim Chanos of

Kynikos Associates pointed out  that 30 years ago there were only about 100 hedge funds and just about all of them created alpha. Today, there are more than 10,000 hedge funds, and it still seems as if only about 100 of them generate alpha.

It isn’t just hedge-fund manag-ers; stock pickers in general (hedge funds, mutual funds, pension funds, etc.) have been having a hard time of it. This is the “Paradox of Skill.” As more and more talented people enter the investment field,

While the Philippines has made several strides in terms of economic growth, there has been very little change in the Gini index, one of the main statistical measures of inequality, at the national level; from around 0.45 in 1988, the index had barely moved to 0.46 in 2012. In fact, the results of this year’s national and local elections have shown that it may not be enough to improve GNI/GDP growth, but also to ensure that marginalized social sectors and underdeveloped regions in the country should be able to benefit from the fruits of economic development.

There have been several reasons that have been put forward to ex-plain the persistence of income inequality in the country. The con-centration of economic development in the urban areas in the past has increased spatial inequality in the country. At the same time, house-hold characteristics (i.e., family size, number of child dependents); infra-structure (i.e., electricity, road); and access to human capital (i.e., educa-tion) have shown to be important fac-tors in variation in living standards. High levels of inequity in land own-ership also have contributed to the

differences in household incomes. Panel data studies that track the same set of families over a long pe-riod of time have also showed that social cohesion and trust networks are also important to social mobility over a longer period.

In the recent decades, there have been public efforts in redressing some of the sources of inequities in the country. Since the 1980s the government has increased alloca-tion of resources in education and other social services, and allotted a greater share of public investments in agriculture and rural develop-ment, including the implementation of a wide-ranging agrarian-reform program. In the 1990s Congress passed a series of “affirmative ac-tion” laws designed to increase access to economic and social op-portunities among marginalized sectors. Institutional mechanisms have been established to allow the greater participation of civil society in national and local governance. Despite these actions, there are still several underlying causes of the weak progress in inequality reduction. Some of these causes could include the pace and structure of economic growth that has not benefited the

poorest; the weak structural transfor-mation of agriculture and the prepon-derance of low-productivity service-sector employment that have led to poor wage growth. Another reason could be that there are bureaucratic and other institutional constraints that affect the performance of sectors important in raising the productivity of the labor force.

But another cause could be that there are other policy areas that may also be important in addressing the problem of inequality, which have not been given due attention in the country. Fiscal policy, specifically the implementation of progressive taxation and tax reforms that allow for the mobilization of domestic resources necessary for support-ing transfers to the poor, could be an area. The legislation and imple-mentation of explicit policies that reduce inequality in the redistribu-tion of natural, financial and other types of productive assets could be another key action.

In the past six years, the Aquino administration has poured a signifi-cant amount of financial resources to social-protection programs, in-cluding conditional-cash transfers (the Pantawid Pamilyang Pilipino Program) and community-driven de-velopment (the Kapit Bisig Laban sa

Kahirapan-Comprehensive and In-tegrated Delivery of Social Services), and also programs designed both to improve welfare and increase par-ticipation of marginalized groups, such as the Bottom-Up Budgeting program. All of these are designed to elevate households from their poverty traps, and ensure that they are able to have a voice in community decision-making.

But, at the same time, it is in-cumbent that programs designed to reduce the still large disparities in income should be emphasized in the coming years. Asset-redistribu-tion programs that aim to disperse ownership of natural and financial assets is still important; up to now, targets for ancestral domain for the indigenous peoples and social-ized housing for the urban poor still have to be met. Strengthening productivity in the agriculture sec-tor, which have been the subject of recent Eagle Watch articles, and fur-ther reforms in the fiscal sector are also key actions.

While the pronouncements in the socioeconomic arena of the incoming administration seem to lay the foundations for further eco-nomic growth, it is apparent that more actions need to be undertak-en beyond its eight-point agenda to address these equity concerns. The challenge in the coming years would be to address the existing gaps without undermining the strides made in improvements in welfare in recent years.

Randy Tuaño is an assistant professor of the Department of Economics at the Ateneo de Manila University. He is also project coordinator at the Hu-man Development Network (HDN), an aggrupation of academics and civil-society leaders whose mis-sion is to propagate and mainstream the concept of sustainable human development through research and advocacy. Portions of this article were also de-rived from a research note written for the HDN.

WITH seven months left in the year the information tech-nology and business-process management (IT-BPM) in-dustry continues to work with the government and part-

ners to reach its targets for 2016. According to the IT and Business Process Association of the Philippines (Ibpap), the industry will have a revenue of $25 billion and will fully employ 1.3 million Filipinos.

Growth in substance and style

They will continue to grow and affect the lives of many in Metro Manila, Metro Clark, Metro Cebu, Bacolod City, Iloilo City and Davao City. IT-BPM companies are also found in Next Wave cities and emerging cities, as identified by the Department of Science and Tech-nology-Information and Commu-nications Technology Office (DOST-Icto), headed by Deputy Executive Director Monchito Ibrahim.

On Thursday Ibpap and Icto hosted the first Business Resiliency Summit, tackling the latest lessons learned and innovation developed for dealing with business disrup-tion wrought by natural disasters. Discussion focused on disaster pre-paredness, response, and recovery and resiliency.

Earlier this week industry ex-ecutives from all over the country attended the Philippine Economic Zone Authority (Peza) and IT-BPM discussions regarding benefits companies are entitled to if Peza-registered, and the responsibili-ties that come with it. Discussion points include application for Peza registration of IT enterprises and incentives, visas, national build-ing-code permits, reportorial re-quirements, attestation of date of start of commercial operations and Peza permits for movements of goods. The Peza has been a partner of the industry, encouraging con-tinuous growth with the support of Director General Lilia de Lima.

The Filipinos, the government and the foreign investors all gain from the growth of the industry. Filipinos are attracted to IT-BPM, because it has one of the best work environments in the country. The government will have a larger em-ployed work force-paying taxes. In-vestors benefit from the educated talent pool of around 600,000 ter-tiary graduates every year, and the high literacy rate of the country at 93 percent.

n n n

THE IT-BPM road map for 2022 is necessary, and is a big step for the sector as it moves beyond 2016 with new leaders in the government. As the industry welcomes a new admin-istration, it will build new links and renew partnerships. There is a need for them to get to know and under-stand the Duterte administration and vice versa.

With over 10 years’ experience in global sourcing service, and for the

country to move forward, the indus-try is consulting and asking really hard questions on how to manage growth for the next six years, new technologies will require new skills and have its own challenges.

n n n

THE industry is confident of its ac-complishment and reaching its tar-get at the end of the year. It looks forward to working with President-elect Rodrigo R. Duterte, a charis-matic leader as proven by his per-formance in the recent election, and his Cabinet, who many hope will be leaders grounded in basic truths, competence and ethics. Based on statements and promises made during the election period about crime, drugs and development in infrastructure, Filipinos have high hopes that life will be kinder to them in the next few years.

n n n

STUDENTS from the University of the Philippines in Quezon City shared what they consider as vital elements of leadership, which in-clude having a compelling vision; being open and approachable; ex-uding trust; being genuine; acting collaboratively; putting their em-ployees/team/kababayan first; be-ing courageous and decisive, and exhibiting confidence.

The youth, our future leaders, commonly agreed that success of government and/or industry is more about substance than style.

Greater scrutiny of leadership credentials is important, but it should not only be based on skills and experience. Key criteria, like judgment, decision-making, per-sonal values and ethics, should play a far greater part of the assessment.

Words and actions should match. Only then do leaders act as genuine role models. Leaders set the cultural tone, highlighting the standards of behavior expected from colleagues and citizens.

there is simply that much less alpha to go around. Financial researcher Larry Swedroe notes that only  2 percent of managers are generating alpha, down from 20 percent a few decades ago. That number seemed likely to keep failing.

Given all of the talent today in the zero-sum game of trading, it just might be statistically impossible for many managers to create alpha. But it would be wrong to say none do. There are a handful who have consistently made money on both a relative and an absolute-return basis. It is just that sustainable, long-term alpha is that rarest of all elements. The vast majority of institutional hedge-fund investors would have been better off (often much better off) with a simple low-cost index portfolio of 60 per-cent stocks and 40 percent bonds.

Perhaps, it is true that, as  the

Economist  noted in 2005, a hedge fund is just “a compensation scheme masquerading as an asset class.”

Maybe the single-most challeng-ing task is untangling skill from luck. One way is to determine if a money manager’s returns are skill-based is to see if they can be repeated over long periods of time. Those managers who have developed a specialty that doesn’t lend itself to being arbitraged away are a good place to look. How-ard Marks of Oaktree Capital, for example, has long-term returns in distressed bonds that are far beyond what could be reasonably explained by chance alone. The odds are low that luck accounts for annual re-turns of more than 17 percent over a span of more than 20 years.

On the other hand, there are plenty of managers who seem to be one-hit wonders through some

combination of luck, skill and good timing. Where they stumble is when they try to reproduce those returns.

Wall Street Journal reporter Greg Zuckerman profiled fund manager John Paulson, whose wager against subprime mortgages and residen-tial real estate netted his firm more than $15 billion. Since then, he hasn’t been as successful. Bad bets on gold and takeovers involving Al-lergan and Valeant have battered the fund. Others who also made winning bets on subprime have been similarly stymied. Kyle Bass did exceedingly well during the housing collapse, only to slip up on oil.

But were they one-hit wonders? Maybe. But having the courage of your convictions in the face of  ex-treme doubt from clients, partners and friends, as Paulson and some others did, isn’t something many

money managers could sustain. So give credit where it’s due.

There are signs that investors have wised up to the game of chas-ing alpha. Flows to hedge funds and other less liquid investments are slowing. A senior Blackstone Group executive on Wednesday said hedge funds might lose as much as a quar-ter of their assets. Consultants are being  called to task  for their role in steering investors to underper-forming, high-fee alternative in-vestments. Research has shown that financial consultants  add no value through their selection of in-vestment managers.

Understanding the costs of pur-suing alpha, and how genuinely rare it has become, may very well deter-mine what the next decade of capital flows look like.

Me? I’ll stick with beta.

To date, Caritas Manila has produced over 10,000 graduates and continues to provide educational assistance, values-formation workshop and leadership trainings to almost 5,000 students nationwide, with an average of 300 college and technical/vocational graduates yearly.

There are still several underly-ing causes of the weak progress in inequality reduction. Some of these causes could include the pace and structure of economic growth that has not benefited the poorest; the weak structural transformation of agriculture and the preponderance of low-productivity service-sector employment that have led to poor wage growth.

The IT-BPM road map for 2022 is necessary, and is a big step for the sector as it moves beyond 2016 with new leaders in the government. As the industry welcomes a new administra-tion, it will build new links and renew partnerships. There is a need for them to get to know and understand the Duterte government and vice versa.

NewsBusinessMirror [email protected] Saturday, May 28, 2016 • Editor: Dionisio L. Pelayo

PDP-Laban set on coalition-building to push Duterte agendaB B F @butchfBM

PARTIDO Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban) is apparently focused more on coalition-

building, in hopes of cobbling multiparty support for the legislative agenda of the incoming Duterte administration.

PDP-Laban Founder and former Senate President Aquilino Pimentel Jr. said the soon-to-be ruling party of incoming President Rodrigo R. Duterte would need to enlist support of other allied political parties to get things done.

“One thing is certain, PDP-Laban can’t do it alone,” said Pimentel Jr., fa-ther of incumbent Sen. Aquilino Pimen-tel III, who is now serving as the current party president.

The former Senate president inti-mated to the BusinessMirror that

the Duterte administration is likely to lead a new ruling coalition comprising of members from other political groups to ensure smooth implementation of it’s public-service programs.

“It [PDP-Laban] needs the support of people to get things done to advance the national weal,” Pimentel Jr. added.

Duterte’s PDP-Laban earlier forged an alliance with the Nacionalista Party, headed by former Senate President Manuel Villar and Sen. Cynthia Villar.

PDP-Laban stalwarts in the House of Representatives were also reported

to be recruiting representatives allied with the formerly dominant Liberal Party (LP) to sew up majority support for incoming PDP-Laban Rep. Pantal-eon D. Alvarez of Davao del Sur bid to wrest the Speakership currently held by LP Rep. Feliciano R. Belmonte Jr. of Quezon City.

In a separate text message to the BusinessMirror, Pimentel III con-firmed that all new PDP-Laban recruits, including former LP members, will be re-quired to first undergo the PDP-Laban’s basic membership seminar.

Despite its reputation of being the only political party that still takes its membership requirement seriously—even if through the years it suffered dwindling membership, as members were lured to defect to new power brokers during administration changeovers—the PDP-Laban is now apparently ap-plying a new tack in order to find space for the sudden surge of recruits eager to cash in on the goodwill of the in-coming administration of PDP-Laban member Davao Mayor now incoming President Duterte.

PINOYS EDGE THAIS

V-LeagueOpen getsoff wraps

SportsBusinessMirror A7Saturday, May 28, [email protected] | [email protected]

B R O

HARD-LUCK San Sebastian College dedicated an impressive 80-70 victory over University of Perpetual Help to injured teammates Michael Calisaan and Rhanzelle Yong in the Filoil Flying V Premier Cup on Thursday at the Filoil Flying V Centre in San Juan. Without Calisaan, who is averaging 18.2 points and six

rebounds in the tournament, Jerick Fabian and Alvin Capobres picked up the leadership and scoring slack and scored 20 points. They outscored the Altas’ three double-digit scorers—Gab Daganon, AJ Coronel and Flash Sadiwa—who combined for 37 points. Calisaan was involved in a motorcycle accident last Sunday while at a fiesta in his hometown of  Santa Rita, Pampanga. He suffered a mouth injury where he lost six teeth. He is expected to be out for at least one month but should be ready for the upcoming National Collegiate Athletic Association season. Yong is also out for an entire season because of a knee injury. The Altas were not without their own missing players as their Cameroonian reinforcements Bright Akhuetie and Prinze Eze were also unavailable for the game. Akhuetie was at the finals of another tournament with Mighty Sports while Eze has the fly and stayed inside the locker room.  Without their Africans, the Altas were killed off the boards by the Stags, 47-39, who scored eight second-chance points. Their opponents

went zero in that department. The normally sharp Altas were listless and uncoordinated. They committed 23 turnovers and blew six uncontested lay-ups, including two in the dying minutes.  “This was a good win for us, as we all know that Perpetual Help is a very good team even without their imports,” San Sebastian Head Coach Edgar Macaraya said. “I know they did not play their usual game but that’s sports. I am proud of our defensive effort, especially in the rebounds category since we aren’t very tall.” On Sunday Los Angeles Lakers guard Jordan Clarkson will be at courtside for the eagerly anticipated Ateneo-De La Salle match. Clarkson is in town on vacation and to watch Gilas Pilipinas prepare for the Olympic Qualifying Tournament. The Blue Eagles are 2-1, while the Green Archers are the only undefeated team with 4-0. Ateneo will be led by CJ Perez, Adrian Wong and Chibueze Ikeh, while De La Salle has the bull-strong Ben Mbala, Jeron Teng and Prince Rivero. Tickets to the Ateneo-De La Salle Filoil Flying V Premier Cup match at the Filoil Flying V Centre in San Juan are available at the gate and through Ticketnet.

GILAS Pilipinas got a big scare from Thailand before hanging on for a 66-65 victory on Thursday night to sweep the elimination round of the Southeast

Asia Basketball Association (Seaba) Stankovic Cup at the Stadium 29 in Bangkok. Michael Tolomia and Kevin Ferrer hit crucial three-pointers in the closing minute but Gilas nearly paid dearly for its inbound booboo in the last 1.6 seconds, as Chitchai Ananti’s half-court heave almost went in as time expired. The game had no bearing for both teams. They are scheduled to meet in the finals at 8:30 p.m. on Saturday. They also already qualified for the International Basketball Association Asia Challenge in Tehran, Iran, in September. Team captain Troy Rosario paced Gilas with 20 points and 10 rebounds but his lazy inbound pass with 1.6 ticks left was picked up by Ananti at midcourt and the Thai’s attempt almost went through. “It’s hard to play a veteran team like Thailand. They are smart and very disciplined. It’s a good thing that the young players were up to the challenge,” Racela said. Mark Belo chipped in 18 markers for the Filipinos, who missed their first 25 three-point attempts and finished three-of-37 overall from rainbow territory. Tolomia contributed nine points and nine boards, while Ferrer had seven markers and was responsible for halting Gilas’s three-point shooting woes that gave Gilas a 54-49 lead early in the fourth quarter. The Thais answered with an 11-4 run capped by Nakorn Jaisanuk to grab the lead, 60-58, 4:43 remaining. After Rosario knotted the score with two free throws at 60-all, Thailand went three-of-six from the free-throw area for a 63-60 lead with 2:07 left. Tolomia swished a triple at the top of the key for 63-all, and Belo had a crucial steal on Attaporn Lertmalaiporn that led to a Ferrer triple from the corner to give the Philippines a 66-63 advantage with under a minute left. Ananti scored in the next play for the Thais, 65-66,

and had the chance to regain the lead after Ferrer missed a three-point attempt. But Reymar Jose blocked Bandit Lakhan’s drive with 1.6 ticks left. Gilas only needed to a good inbound play, but Rosario opted to roll the ball at midcourt and was picked up by Ananti, who had a clear attempt from center court but

missed the target. Ananti led Thailand with 14 points, while

Nakorn Jaisanuk added 12 markers for the Tim Lewis-coached team. The Thais

finished the eliminations with a 3-1 slate. Joel Orellana

THE pioneering Shakey’s V-League launches its 13th season at its home at The Arena in San Juan with eight teams of varied

strengths chasing the same goal—win the Open Conference crown. Preseason favorite Pocari Sweat gets the chance to showcase its wares early as it tangles with University of the Philippines (UP), while National University (NU) starts its rebuilding process following the graduation of two mainstays, as it collides with newcomer Team Laoag in a pair of matches kicking off the seven-week season-opening tournament of the country’s longest-running league sponsored by Shakey’s Pizza. The Spikers’ Turf also unveils its second season with Navy and Instituto Estetico Manila clashing in the lone match at 1 p.m., preceding the Shakey’s V-League games pitting NU versus Team Laoag at 4 p.m. and Pocari Sweat against UP at 6:30 p.m. The league, organized by Sports Vision, also got a big boost as it signed a three-year contract with television giant ABS-CBN, which will air all its Shakey’s V-League games live on its ABS-CBN Sports + Action Channel 23. The Tai Bundit-coached Pocari Sweat Warriors are tipped this early as the team to watch, what with a talent-laden, experienced squad headed by former collegiate stars Michelle Gumabao and Melissa Gohing of La Salle, and Myla Pablo of NU. “We’ll be relying on our experience and familiarity with each other to help us through,” said Pocari Team Manager Eric Ty, who encourages their fans to wear the team’s color of blue in their encounter with the Lady Maroons. But the Warriors are wary of their equally strong rivals from Diliman, who bucked the odds and crashed into the Final Four in the recent University Athletic Association of the Philippines season. Kat Bersola, Nicole Tiamzon, Issa Molde, Diana Mae Carlos and Justine Dorog are raring to slug it out with the best in the league, with Coach Jerry Yee also confident of his wards’ chances to pull off some surprises in the tournament backed by Mikasa and Accel. NU, for its part, will be banking on its new setters following the graduation of Ivy Perez and Myla Pablo, while Rica Diolan didn’t make the cut. Larni Abarin, a 5-foot-9 setter who was born in the US to Filipino parents, should fill the void left by Perez and Diolan, although the Lady Bulldogs will have to wait a little longer since she will only arrive late next month. In her absence, Coach Roger Gorayeb hopes to draw the best from Audrey Paran and Jasmine Nabor, who has been converted from an open spiker to setter. Fil-Jap Raisa Sato will also debut in their match against Laoag, giving holdovers Jaja Santiago, Jorelle Singh and Aika Urdas a big boost. “We have to make do with what we have while we wait for our setter from the US,” Gorayeb said. Laoag will be mentored by Nes Pamilar and spearheaded by Chi Saet, Wenneth Eulalio, Mylene Paat and Jessica Galanza. Lance Agcaoili

DWIGHT SAGUIGIT completed his free throws in the last 1.5 seconds to lift Olivarez College to another upset

win—79-77 over reigning National Collegiate Athletic Association of the Philippines champion Letran—in the 22nd Fr. Martin Cup Summer Basketball Tournament recently at the Coyuito gymnasium of the San Beda College-Manila in Mendiola.

The Sea Lions wound up its campaign with a 3-3 won-lost record in Group B. The Knights, coached by Jeff Napa, still advanced to the quarterfinal round with a 5-1 record. The Sea Lions drew a game-high 19 points from Saguiguit, while Pruvil Bermudes added 15 points and Jboy Solis added 14. The Sea Lions also upset Jose Rizal University-A, 78-70, earlier in the tournament.

Shifting to high gear

PINOYS EDGE THAIS

BusinessMirror A7Saturday, May 28, 2016

went zero in that department. The normally sharp Altas were listless and uncoordinated. They committed 23 turnovers and blew six uncontested lay-ups, including two in the dying minutes. 

“This was a good win for us, as we all know that Perpetual Help is a very good team even without their imports,” San Sebastian Head Coach Edgar Macaraya said. “I know they did not play their usual game but that’s sports. I am proud of our defensive effort, especially in the rebounds

On Sunday Los Angeles Lakers guard Jordan Clarkson will be at courtside for the eagerly

watch Gilas Pilipinas prepare for the Olympic

The Blue Eagles are 2-1, while the Green Archers are the only undefeated team with 4-0.

Ateneo will be led by CJ Perez, Adrian Wong and Chibueze Ikeh, while De La Salle has the bull-strong

Tickets to the Ateneo-De La Salle Filoil Flying V Premier Cup match at the Filoil Flying V Centre in San Juan are available at the gate and through Ticketnet.

Gilas only needed to a good inbound play, but Rosario

Ananti led Thailand with 14 points, while

finished the eliminations with a

[email protected] | [email protected]

H

UNIVERSITY of Perpetual Help’s Je�rey Coronel is

double-teamed by San Sebastian College defenders.

NONIE REYES

KIRSTIE ELAINE ALORA and Ian Lariba has shifted to high gear their respective preparations for the Rio de Janeiro

Olympics in August. Alora has been sparring with taller male opponents to visualize what the opposition in the women’s taekwondo competitions would look like in Rio. Alora has earlier stressed that she expects her opponents in the women’s +67 kilograms to be taller than her 5-foot-8 frame. The jin, who earned her ticket to Rio from the Asian qualifiers in Manila last month, will also compete in the Korea Open in June along with other national team members. “Pinag-aaralan talaga namin kung paano tatalunin ‘yung mga matatangkad na kalaban. Isa kasi ako sa pinakamaliit sa category ko. Kaya ang aim namin ngayon sa team together with the coaches ay mailaban ako sa competitions na mas malalaki ‘yung opponents ko,” Alora said.

Lariba, the first Filipino to qualify for Olympic table tennis, will see action in the Japan Open from June 15 to 19 and Korea Open from June 22 to 26. The two tournaments form part of her preparations for the August 5 to 21 Rio Games. “Napakabigat ng responsibility ko. Siyempre mayroon nang expectations ang lahat. Ang goal ko talaga is mabigay ang best ko para sa bansa natin,” said Lariba, whose 11th-place finish in the 2016 International Table Tennis Federation-Asian Olympic Qualification Tournament in Hong Kong last month was enough for her to make it to Rio. “Matindi na ‘yung level of competition sa Olympics, hindi na talaga magiging madali,” Lariba added. Joining Alora and Lariba in Rio are hurdler Eric Shauwn Cray, weightlifter Hidilyn Diaz and boxers Rogen Ladon and Charly Suarez.

Ramon Rafael Bonilla

Saguigit charitieslift Olivarez five

STAGS SURVIVE ALTAS

FAVORITES Charo Soriano and Alexa Micek take on Negros’s Floremel Rodriguez and Jennifer Cosas in the Pool A semifinals of the Beach

Volleyball Republic (BVR) National Championship at the SM Sands By the Bay in Pasay City. Soriano and Micek, winners of four of the seven BVR legs, defeated Bacolod City’s Erjane Magdato and Alexa Polidario, 21-19, 21-16, in Friday’s quarterfinals. Rodriguez and Cosas, on the other hand, upset Pool D leaders Apple Saraum and Jusabelle Brillo of Cebu, 21-15, 21-13, to earn their slot in the final four. Bea Tan and Fiola Ceballos and Air Force’s Judy Caballejo and Camille Abanto will clash in the other semifinal. Tan and Ceballos survived Iloilo’s DM Demontanio and Jackie Estoquia, 21-12, 15-21, 15-9. Caballejo and Abanto, on the other hand, defeated Lot Catubag and Karen Quilario of Tagum, 14-21, 21-11, 15-11. The semifinals and championship match will be on Saturday. Lance Agcaoili

Soriano-Micekduo makes semis

THAI Coach Tai Bundit bringshis act to the Shakey’s V-League.

MAC BELO chipsin 18 pointsfor Gilas.

LARIBA

WARRIORS LIVE ANOTHER DAY

STAYIN’ ALIVE!

SportsA8 | SATURDAY, MAY 28, [email protected]

[email protected]: Jun Lomibao | Asst. Editor: Joel OrellanaSportsBusinessMirror

PARIS—First it was Serena Williams’s turn to overpower an opponent 6-2, 6-1 on Court Suzanne Lenglen. Shortly after that was over Thursday, her older sister Venus entered the

very same French Open arena and won by the very same score. A bit like old times, n’est-ce pas? “It’s a little surreal sometimes, because it has been so long. They’ve both been out here almost 20 years,” said their sister, Isha Price, who was in the stands for both matches. “It was nice to have them play back-to-back and not have to move,” Price added with a laugh. “It’s so interesting that their scoreline was the same. It was really nice to be there for that.” Back in 2002, when neither was yet 22, the American siblings contested the final at Roland Garros, one of their eight all-in-the-family Grand Slam title matches—and they haven’t played each other at any stage in Paris since. That’s due in part to Venus’s troubles at the clay-court tournament, where, now nearly 36, she moved into the third round for the first time since 2010 by relinquishing only three games in 54 minutes against American qualifier Louisa Chirico. Defending champion Serena’s similarly simple victory against 81st-ranked Teliana Pereira of Brazil lasted 12 minutes longer. The sisters—No. 1-seeded Serena, No. 9 Venus—even got a chance to cross paths and catch up briefly between their nearly identical matches. Serena faced one break point; Venus zero. Serena compiled a 31-6 edge in winners; Venus’s margin was 22-6. Serena made 17 unforced errors; Venus 15. If some spectators were pleased that a single ticket allowed them to see one Williams, then the other, the players themselves said they don’t really find the time to savor such events. “We’re unfortunately really focused on our match. And I say ‘unfortunately,’ because in a few years, we’ll be like, ‘Wow, that’s a great moment,’” the 34-year-old Serena said. “But right now, we have to be focused on what we want to do in going out there and winning the match.” Venus agreed. “We focus more on the match at hand, and we both have a job to do, and that’s to try to get to the next round,” she said. “We focus less on the significance of us playing and more of like, ‘Can you win this match?’” Each Williams next plays a French opponent: Serena against No. 26 Kristina Mladenovic, Venus against unseeded Alize Cornet. “It’s going to be very complicated,” Mladenovic said. It would take three more victories apiece, but—on the half of the draw already missing No. 3 Angelique Kerber and No. 5 Victoria Azarenka—there is the potential for a Williams vs. Williams semifinal next week. They have not met that deep into a major tournament in seven years, although Serena did defeat Venus in the US Open quarterfinals in September. AP

WARRIORS LIVE ANOTHER DAY

STAYIN’ ALIVE!

[email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected][email protected]@[email protected]@businessmirror.com.phSportssports@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@businessmirror.com.phSportssports@businessmirror.com.phSportsSportssports@businessmirror.com.phSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsSportsEditor: Jun Lomibao | Asst. Editor: Joel OrellanaSportsARIS—First it was Serena Williams’s turn to overpower an opponent 6-2,

Shortly after that was over Thursday, her older sister Venus entered the very same French Open arena and won by the very same score.

“It’s a little surreal sometimes, because it has been so long. They’ve both been out here almost 20 years,” said their sister, Isha Price, who was in the

“It was nice to have them play back-to-back and not have to move,” Price added with a laugh. “It’s so interesting that their scoreline was the same. It was

Back in 2002, when neither was yet 22, the American siblings contested the final at Roland Garros, one of their eight all-in-the-family Grand Slam title matches—and they haven’t played each other at any

That’s due in part to Venus’s troubles at the clay-court tournament, where, now nearly 36, she moved into the third round for the first time since 2010 by relinquishing only three games in 54 minutes against American qualifier Louisa Chirico. Defending champion Serena’s similarly simple victory against 81st-ranked Teliana Pereira of Brazil lasted 12 minutes longer.

The sisters—No. 1-seeded Serena, No. 9 Venus—even got a chance to cross paths and catch up briefly between their nearly identical matches. Serena faced one break point; Venus zero. Serena compiled a 31-6 edge in winners; Venus’s margin was 22-6. Serena made 17 unforced errors; Venus 15.

If some spectators were pleased that a single ticket allowed them to see one Williams, then the other, the players themselves said they don’t really find

“We’re unfortunately really focused on our match. And I say ‘unfortunately,’ because in a few years, we’ll be like, ‘Wow, that’s a great moment,’” the 34-year-old Serena said. “But right now, we have to be focused on what we want to do

“We focus more on the match at hand, and we both have a job to do, and that’s to try to get to the next round,” she said. “We focus less on the significance

Each Williams next plays a French opponent: Serena against No. 26 Kristina

It would take three more victories apiece, but—on the half of the draw already missing No. 3 Angelique Kerber and No. 5 Victoria Azarenka—there is the potential for a Williams vs. Williams semifinal next week. They have not met that deep into a major tournament in seven years, although Serena did defeat

SISTER ACT

B J MCThe Associated Press

OAKLAND, California—Stephen Curry scored 31 points, raising his arms in the early moments to awaken Golden State’s raucous crowd, as the defending champion Warriors staved

off elimination with a 120-111 victory over the Oklahoma City Thunder on Thursday night in Game Five of the Western Conference finals. The Most Valuable Player made a slick lay-up late and dished out six assists, while Klay Thompson added 27 points, as Golden State sent the best the best-of-seven series back to Oklahoma City for Game Six on Saturday night.

Golden State trails 3-2 and is trying to become just the 10th team to rally from a 3-1 deficit. “We ain’t going home! We’re not going home!” Curry yelled at the top of his lungs in the waning moments. For all the speculation about the current state of Curry’s beat-up body—that troublesome ankle, sore knee or tender elbow—he did it all. “I thought he looked like 91 percent,” Coach Steve Kerr cracked. “He came out and played a really good game. That’s all I can tell you. He’s going to compete every night. He had an excellent night and helped us get it done.” Led by Curry, the Warriors looked like their old winning selves again. “We just did what we’re supposed to do. We’re supposed to win at home,” Curry said. “We know what we still have to do going forward.... We knew if we didn’t win we were going home. There’s no other motivation you need.” Kevin Durant scored 40 points and Russell Westbrook added 31 points, eight assists, seven rebounds and five steals for the Thunder, trying for the fifth National Basketball Association Finals appearance in franchise history and first championship since moving from Seattle. The record-setting, 73-win Warriors, coming off their first back-to-back defeats all season, had been blown out in two losses at Oklahoma City by

a combined 52 points. “We have to take that game and travel,” Curry said of keeping momentum. Durant’s three-pointer with 4:34 left got the Thunder within 103-98, then Curry answered with a three-point play. Curry scored seven points in a 58-second stretch of the second quarter and hit more big shots late, but the Thunder didn’t go away easily. “I liked our will, I liked our fight,” Kerr said. “We were embarrassed in OKC the last couple games.” Trailing 58-50 at halftime, Oklahoma City came out of the break with a 9-2 run. Westbrook’s three-pointer with 6:06 left in the third put Oklahoma City ahead 68-67 for its first lead of the night. But Golden State led 81-77 going into the fourth and began the final period with an 8-0 burst. “We didn’t shoot a particularly good percentage when we got into the lane and got into the deep paint,” Thunder Coach Billy Donovan said. “We had our opportunities.” Curry shot nine-for-20 and also had five steals, while Thompson had his 11th 20-point game for the second straight postseason despite shooting two-for-nine from three-point range. After struggling the past two games, Draymond Green had 11 points and 13 rebounds a day after receiving some encouraging words from Kobe Bryant on the phone.

STEPHEN CURRY: We ain’t going

home! We’re not goinghome! AP

RAFAEL NADAL runs and slides to return a shot in his second-round match on Thursday. AP