P20

Govt should tap BSP reserves for projects

Special to Business Matters
global investments with higher yields. the BSP invests its reserves mostly US treasury notes that earn a small interest income. We are effectively lending cheaply to americans to finance their wars, fiscal deficits and overconsumption. the justification commonly given is that the US financial markets are safe and liquid and would be the most natural investment haven for these excess reserves. My fear is that over the long term the United States, with its massive fiscal deficits and large current account deficits and the huge overhang of US dollar holdings in China, and other trade surplus countries, may not be able to sustain the real value of its currency for long. the Bangko Sentral is over exposed to the US dollar and can be highly vulnerable to any significant deterioration in confidence in the US economy. We can say that much of our reserves are mere pieces of paper representing unused claims on the US economy and which gives us very low yields. We may be better off lending part of this money to ourselves to finance our own development. this money, if well used, can yield socioeconomic InternatIonal Monetary Fund (IMF) studies seem to suggest that emerging asian countries hold international reserves significantly higher than other regions and at levels way above what would be required in terms of prudent financial management. the question that arises : What should countries in such a situation do with its excess international reserves? In previous international monetary regimes, the practice would have been for countries excess foreign exchange holdings, say French francs, to ask the French central bank to exchange them for gold. If the French did not have enough gold, it would trigger a devaluation of the French franc. It should be noted that former French head Charles de Gaulle asked the americans to exchange the French US dollar holdings for gold from Fort Knox. now, this phenomenon of excess international reserves has been put to good use by some countries. a good number of them, like China, Singapore and South Korea diversify the investment of their reserves into sovereign wealth funds to invest in stocks and other higher yielding investment instruments. the prudent levels of International reserves based on IMF review of various rules and measures (three months of imports, Greenspan Guidoti rule, Jeanne rancier formula, etc) range from 8% of GDP to 12% of GDP. Philippine GDP is about eight trillion pesos or about one hundred sixty billion dollars. even at a very conservative level of 20% of GDP we should only be holding international reserves of $32 billion, or an excess reserve level of more than $30 billion. Borrowing $10 billion for the proposed quantum stimulus for national development will not at all endanger our international financial standing as long as we can convince the financial markets that this money will be well spent and will yield the long term returns that will enable the national treasury to repay the Bangko Sentral. as for the balance of our excess international reserves we should consider forming our own sovereign wealth fund to explore reasonably safe and diversified returns even higher than those of the best sovereign wealth funds. the Philippine State at present seems to be remiss in ensuring its peoples well being with hunger and unemployment on the rise. education and health are perennially in a poor state and we have under spent on these essential services ever since we can remember. amartya Sen has observed that the lack of social development can hold back economic development. We recognized that the law that created the BSP severely limits and practically prohibits the BSP from lending to the national government, and should we find the proposal economically feasible, proper amendments in the legislation will be needed. We also have to deal with the market signaling effects should this proposal be implemented. We have to convince the market that the envisioned improved portfolio balance of our national assets in terms of a healthy, well educated and productive population coupled with a healthy physical environment supportive of a high level of agricultural and marine productivity will reap sufficiently high economic returns that will eventually pay for the proposed quantum spending stimulus. We can say that investing in a childs education is like a 30 year bond with a 15 year grace period with a high socioeconomic return

June 5-12 2011

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Vol. IV No 0051

Analysis

Security bank acquires Premiere Development Bank

SeCUrIty Bank recently announced its acquisition of 98 percent of the outstanding capital stock of Premiere Development Bank and its intention to acquire the remaining outstanding shares. the transaction was priced at P1.3 billion or 1.6 times book value of Premiere Bank as of December 2010. Premiere Development Bank (PDB) is a private development bank incorporated in 1960 by Dr. Procopio C. reyes under the name of Pasay City Development Bank. Its head office is located at edsa cor. Magallanes avenue, Makati City. the major selling shareholders of Premiere Bank include the Puyatreyes Family, the MadrigalGonzales Family and the rohatyn Group, a new york-based private investment firm specializing in emerging markets with $3 billion in funds under management. Security Banks acquisition of Premiere Bank is part of its strategic plan to expand its branch network, build its loan portfolio and expand its customer base. Security Bank President and Ceo alberto S. Villarosa stated: Combining our people and resources, our two banks will continue to grow and provide

the exceptional customer service weve always been known for in the banking community, he added. In a separate statement, Cezar P. Consing of the rohatyn Group said: the sale of Premiere Bank to Security Bank marks the culmination of a very effective partnership between the rohatyn Group, the Puyat-reyes family, the Madrigal-Gonzales family, and the banks senior management. the four-year partnership has grown Premiere Bank by three times in terms of assets and, in the process, produced considerable added value for its shareholders. at this stage of Premiere Banks development, its shareholders are best served if the bank becomes part of a larger banking franchise. the acquisition of Premiere Bank will complement Security Banks existing operations with

a loan portfolio estimated at P3 billion and 20,000 loan customers, 37,000 depositors with an estimated P 4.5 billion in deposits. Premiere Banks branch network is comprised of 21 branches in and around Metro Manila and 17 branches in the provinces of Bulacan, rizal, laguna, Cavite and Batangas. Villarosa added further: the purchase of Premiere Bank would immediately expand our distribution reach by 30% to 170 branches and effectively increase our presence and competitive stance in the consumer, small and mid-sized business segments. the acquisition comes at the heels of Security Banks recently forged joint venture establishing a leasing company with Marubeni Corp. of Japan. Security Bank is celebrating its 60th anniversary this year.

Electronic Network Cash Tellers, Inc. (ENCASH), the first independent ATM deployer in the Philippines, has expanded its reach to serve the indigenous Filipinos of the Mangyan tribe. ENCASH recently deployed an ATM in Mansalay, Mindoro in partnership with the Alabang Rural Bank (ALABANK). This deployment means that recipients of the governments 4Ps program, including the Cardholders from the Mangyan tribe, will be able to avail of their money via the ENCASH ATM. The peace-loving Mangyans comprise several tribes who live in the mountains of Mindoro. They live by hunting and subsistence farming. Occasionally, they come down from the mountains to barter their goods and to buy their supplies. With the advent of the ENCASH ATM, they are no longer financially excluded. Eric Severino, ENCASH President, said, We are extremely proud and privileged that we can now serve the previously unbanked and underserved members of our community. This development means that the Mangyans no longer have to traverse mountains and ride a boat all the way to Batangas just to withdraw money from the nearest ATM.

June 5-12 2011

SInGaPore -- ICtSI Far east Pte. ltd. (ICtSI Far east or the offeror), an indirect wholly-owned subsidiary of International Container terminal Services, Inc. (ICtSI), have announced a voluntary conditional cash offer (the offer) for all issued and paid-up ordinary shares (the Shares) in Portek International limited (Portek or the Company) other than those already owned, controlled or agreed to be acquired by the offeror and parties acting in concert with the offeror (the offer Shares). Portek is a turnkey port services and solutions provider as well as an operator of container terminals of up to 350,000 twenty-foot equivalent units (teU) and multipurpose ports. ICtSI is an international operator of common user container terminals serving the global container shipping industry. the company is listed on the Main Board of the Singapore exchange Securities trading limited (SGX-St). Mr enrique K. razon Jr., Chairman and President of ICtSI, said, our offer represents an attractive proposition to Portek shareholders to realise the value of their investment in cash and at a substantial premium to the historical traded prices of the Shares. We strongly believe that the offer reflects the value of the combined business and management of the Portek and ICtSI. Rationale

ICtSI Far east starts cash offer for Portek International shares

NEDA releases PH development plan

the Philippine Development Plan (PDP) 2011-2016 is now available for download at the neDa website: www.neda.gov.ph, the national economic and Development authority (neDa) announced today. the Plan, anchored on President Benigno S. aquino IIIs 16pointSocial Contract with the Filipino People, envisions inclusive growth for the country. Inclusive growth means growth that is shared by all and opposed to the trickle down, jobless growth that we have seen over the recent years. With good governance and anti-corruption as overarching theme, the Plan has three broad strategies. First is a high and sustained economic growth, which provides productive and decent employment opportunities. the second strategy is provision of equal access to development opportunities across geographic areas and across different income and social spectrum, which will ensure that economic growth and opportunities translate to poverty reduction. thirdly, the Plan will push for the implementation of effective and responsive social safety nets in order to assist those who will not be able to catch up by the character of a rapid economic growth. the Plan comprises 10 chapters, namely: 1. Introduction: In Pursuit of Inclusive Growth 2. Macroeconomic Policy 3. Competitive Industry and Services Systems 4. Competitive and Sustainable agriculture and Fisheries Sector 5. accelerating Infrastructure Development 6. towards a Dynamic and resilient Financial Sector 7. Good Governance and the rule of law 8. Social Development 9. Peace and Security 10. Conservation, Protection and rehabilitation of the environment and natural resources towards Sustainable Development through Memorandum Circular no. 3 issued by the President last September 2, 2010, neDa was tasked to coordinate the preparation of the Plan and the Public Investment Program 2011-2016 jointly formulated by the executive and legislative branches of the government. Following the completion of the Plan, neDa shall coordinate the formulation of the results Matrix (rM) as well as the PIP 2011-2016. the rM will provide measurable outputs and targets in line with the national government agencies intended outcomes and strategies while the PIP translates the Plan into a core set of priority programs and projects for their implementation from 2011-2016. annual updates will be done to monitor the results and targets identified in the Plan.

the acquisition of Portek is in line with ICtSIs stated strategy to expand its existing network of port concessions, adding to ICtSIs global network of 22 port terminals in 17 countries. Portek operates terminals of up to 350,000 teU, while ICtSI, its subsidiaries and associated companies operate similar sized terminals, medium sized terminals and ICtSIs flagship Manila terminal which has 1,900,000 teU capacity. as competition for the acquisition of port concessions intensifies, scale and access to capital will become critical factors in winning new concessions and in successfully financing the expansion of existing facilities. If the offer is successful, the Company will be able to draw upon ICtSIs financial resources to successfully execute its organic and geographical expansion. In addition, the offeror is launching this offer at S$1.20 per offer Share, which is a substantial premium over the historical traded prices of the Shares and the net asset value (naV) of Portek.

Furthermore, the trading volume of the Shares on the SGX-St has historically been low, and Portek currently does not have any consistent coverage from research analysts. the average daily trading volume (aDtV) of approximately 284,162 Shares during the 12-month period from 1 June 2010 to 31 May 2011 represents only approximately 0.2 per cent. of the Shares . Based on the historical trading patterns, the offeror believes that the low trading liquidity of the Shares is likely to continue. Details of the Transaction ICtSI Far east Pte. ltd and the relevant Persons (as defined in paragraph 9.1 of the announcement of the offer) own or control 7,250,000 Shares or approximately 4.82% of the total number of Shares . In accordance with the Singapore Code on take-overs and Mergers, the offer document will be posted to Portek shareholders no earlier than 14 days and no later than 21 days from the announcement Date. the offer will be subject to, among other things, the offeror having received, by the close of the offer, valid acceptances which have not been withdrawn in respect of such number of offer Shares, and which together with Shares owned, controlled or agreed to be acquired by the offeror and parties acting or deemed to be acting in concert with the offeror, will result in the offeror and parties acting or deemed to be acting in concert with the offeror holding such number of Shares carrying more than 50% of the total number of Shares which would be in issue if all the outstanding share options granted under the Portek employees option Scheme 2002 are validly exercised. If the offeror receives valid acceptances or acquires offer Shares during the offer period otherwise than through valid acceptances amounting to no less than 90% of the total number of Shares as at the close of the offer (other than those already held by the offeror, its related corporations or their respective nominees as at the announcement Date), the offeror will have the right to compulsorily acquire all the Shares of shareholders of Portek who have not accepted the offer on the same terms as those offered under the offer. In the event that the offeror becomes entitled to exercise its right of compulsory acquisition as set out above, the offeror intends to exercise its right of compulsory acquisition, and in such event, Portek will become a wholly-owned subsidiary of the offeror.

Mining firms hail robredo appointment

the Chamber of Mines of the various local government units Philippines (CMP) today welcomed throughout the country, the group the permanent appointment by said. President aquino of Department at the same time, the group of Interior and local Government said they fully support the aquino Secretary Jesse robredo. administrations thrust towards Secretary robredo sustained is highly qualified to economic head the DIlG on a growth and permanent basis, the allowing CMP said in a statement. the mining President industry to aquino deserves credit contribute for recognizing the to national, competence of Secretary local and robredo and formalizing community his permanent development. appointment to a very t h e important department, CMP is an the mining industrys association umbrella group said. advancing For the mining the interest industry to contribute of mining, further to Philippine Jesse Robredo. quarrying economic growth and mineral andsocial progress, processing mining firms need adequate companies for the efficient protection from law enforcement exploration, development and authoritiessince we usually operate utilization of minerals in consonance in far-flung rural areas, the CMP with sound economic, environmental said. and social policies. the CMP consists the cooperation and support of members coming from exploration, of the Philippine national Police, mining, mineral processing and which is under the administrative service industries, including other supervision of the DIlG, is professional associations. indispensable in mining operations, CMP members are united by a the group emphasized. shared commitment to the principles at the same time, the DIlG of economic growth, sustainable under Secretary robredo can development and as partners of facilitate linkages and smooth government in development. the relations between mining companies CMP president served as a member and local government units in mining of the Minerals Development concession areas, the CMP said. Council under theoffice of the We look forward to working President and Chairman of its closely with Secretary robredo on Investment Promotions Group. issues of mutual concern, particularly however, the MDC was abolished with respect to maintaining peace by President aquino last December, and order in mining communities and the CMP has been requesting for and strengthening partnership with its re-establishment.

NEW SCHOOL DESKS FROM PAGCOR. Schoolchildren of Toclong Elementary School in Imus, Cavite show their appreciation for the 50 brand new three-seater school desks made out of old slot machine stands recently donated to their school by the Philippine Amusement and Gaming Corporation (PAGCOR). The donation, which brings to 450 the total number of school desks given out by PAGCOR to six public elementary schools, will benefit 1,100 public elementary students when the school year opens on June 6.

June 5-12 2011

SMB delivers strong full-year, 1Q results

San Miguel Brewery, Inc. delivered strong 2010 results with volumes, revenues, and operating income reaching record highs on the back of improved cost environments and rising consumer confidence and optimism. In a statement to stockholders yesterday at the companys annual meeting, SMB president roberto n. huang said that consolidated sales volume hit 221 million cases, with sales revenue reaching P68 billion, a 32% improvement from the previous year. operating income rose to P19 billion, 16% higher than in 2009. this resulted in a healthy operating margin of 27%, he said. huang cited brandbuilding and volumegenerating efforts, improved efficiencies, and enhanced cost management as key factors for SMBs strong showing in 2010. the firm also sustained its strong performance throughout the first quarter of 2011, capitalizing on favorable market conditions and ramping up market expansion programs. as a result, consolidated net sales revenues amounted to P17.5 billion, up 9% from the same period last year. Income from operations also grew 9% to P5 billion, despite higher costs. San Miguel Brewery Ceo ramon S. ang said that SMBs strong performance showed industries. San Miguel Brewery Inc., as well as our other core businesses, all turned out outstanding results for 2010 and the first quarter this year. I think this shows that we continue to be focused in executing our overall growth strategy well, he said. further strengthen its position for the rest of the year. SMB is confident that further profitable volume of growth can be achieved through determined focus on expanding the beer market, growing the San Miguel brands, managing costs and enhancing operational efficiencies, huang said. last year, SMB integrated its domestic and international businesses through the acquisition of San Miguel Brewing International limited (SMBIl). It also announced that a new bottling facility in Sta. rosa, laguna, is set to start operating in June this year.

Stocks

Centro escolar University

CaSh DIVIDenD DeClaratIon During the regular board meeting of the University on May 21, 2011, the Board of Directors declared cash dividend equivalent to fifty centavos (P0.50) per share to stockholders of record as of record date of June 10, 2011 with payment date on July 7, 2011. CaSh DIVIDenD: CaSh eX-Date reCorD Date PayMent Date P0.50 per share June 7, 2011 June 10, 2011 July 7, 2011

BDo leasing and Finance, Inc. (BDolF) will look for ways to widen its loan portfolio amid a stable outlook on the economy this year. at the sidelines of the companys annual stockholders meeting Monday, its president Georgiana Gamboa said they will continue to find the niche markets and support clients whose needs remain unserved by banks. In particular these are markets that need the Factoring of receivables and leasing products. right now our products and services are extended to different provinces and key cities by virtue of the extensive Banco De oro (BDo) branch network, which are strategically located all over the country. Because of this, clients are able to enjoy the same products and services wherever they may be. the plan is to further expand our geographical coverage to reach out to more clients, she said. Gamboa also said serving the corporates

BDolF targets to grow loans and profits in 2011

that while the conglomerate has diversified into new industries such as energy, fuels, infrastructure, and telecommunications, its traditional businesses continue to be leaders in their respective

huang said that the company will continue to pursue efficiencies in its operations, sales, and distribution; explore additional distribution modes, and enhance sourcing schemes, to

Cityland Development Corporation

DeClaratIon of Cash Dividends: a.) Declaration date: May 30, 2011 b.) record date: June 13, 2011 c.) Payment date: July 08, 2011 d.) Source of Cash Dividends: Unappropriated retained earnings as of December 31,2010 e.) amount per share: Php 0.05 f.) Special Meeting of the Board of Directors: May 30, 2011 CaSh DIVIDenD: CaSh - Php 0.05 per share eX-Date - June 8, 2011 reCorD Date - June 13, 2011 PayMent Date - July 8, 2011

EastWest bank posted first quarter 2011 net Income

the first quarter, which is just a 2.9% decline despite significantly lower trading gains. eastWests revenues for the period came mostly from its core businesses as trading gains

and customers from the SMe (small medium enterprise) segment will likewise remain one of BDolFs priorities, as it improves on its platform to accommodate a more dynamic transaction environment. BDolFs loan and lease portfolio as of December 2010 amounted to P14.6 billion, up 28 percent from the previous year. the companys financial standing also continued to be strong, posting a net profit of P309 million and revenues of P2.04 billion at the end of 2010. BDolF still remains the best capitalized among the local financing companies with stockholders equity of P4.5 billion. this is more than sufficient to support businesses if and when they need financing. Its stable performance was sustained in the first quarter of 2011, with its net profit increasing to P70.7 million from the same period last year. BDolF targets a double-digit growth in its net profit for the full year of 2011.

Republic Cement Corporation declaration of dividends

PleaSe be advised that at the Meeting of the Board of Directors of republic Cement Corporation (Corporation) held on May 30, 2011, the Board of Directors approved the declaration of the following cash dividends to stockholders of record of the Corporation as of June 24, 2011, payable on July 15, 2011: a. cumulative cash dividend of 8% per annum per redeemable preferred share; and b. regular cash dividend of PhP0.12 per outstanding common share; and c. special cash dividend of PhP0.16 per outstanding common share. CaSh DIVIDenD (reGUlar): CaSh - PhP0.12 per common share eX-Date - June 21, 2011 reCorD Date - June 24, 2011 PayMent Date - July 15, 2011 CaSh DIVIDenD (SPeCIal): CaSh - PhP0.16 per common share eX-Date - June 21, 2011 reCorD Date - June 24, 2011 PayMent Date - July 15, 2011

eaStWeSt Bank posted first quarter 2011 net Income of Php443 million, slightly below income for the same period last year by 6.8%. 2. total resources went up by 3.3% at Php75.65 billion by the end of first quarter. a. total loans and receivables to Customers for the quarter stood at Php39.54 billion, a 26.9% increase versus the Php31.17 billion posted in the same period last year. a. total Consumer loans (or loans to individuals) climbed by 10.5% to Php20.75 billion due to significant expansion in the Banks auto loan and Credit Cards-Issuing segments. b. Corporate loans grew by 34.6% to Php20.63 billion from Php15.33 billion in the same period last year. B. the Banks total Deposits for the period stood at Php57.50 billion, or a 5.4% increase from the same period last year, with the growth coming from low cost funds. 3. the Banks net revenues stood at Php1.58 billion at the end of

contracted by 70.6% year-on-year, or down to just Php70 million from Php239 million in the same period last year. a. net Interest Income rose by 9.2% to Php1.09 billion versus year ago figure as the Bank continued to increase its lending business while managing its cost of funds. B. non-interest income, excluding trading gains, increased by 7.8% to Php419 million from Php388 million in the same period last year. 4. total operating expenses rose by a mere 2%, with the increase coming from manpower expenses

as the Bank continued to beef up its talent pool. 5. eastWest Bank reported a return on equity (roe) of 18.43, one of the highest in the industry, as the Bank managed to grow its recurring income base at a much faster pace relative to its operating expenses. 6. eastWest reported an nPl ratio for the period of 5.76%. this will be significantly reduced as the Bank write-offs its nPl. Moreover, if the Bank is to exclude the nPls that are 100% fully provided, the Banks nPl ratio will be reduced to just 3.8%. the Banks Capital adequacy ratio (Car) stood at 15.77% by end of first quarter, way above the minimum 10.0% required by the Bangko Sentral ng Pilipinas. 7. as of april 2011, eastWest Banks total branch network reached 114 while the total number of atMs was 119, deployed in both onsite and offsite locations. the Bank is planning to open 30 more branches in the succeeding months.

the Board of Directors of BDo leasing and Finance, Inc. (BDolF) meeting held today, May 30, 2011, approved the declaration of cash dividends to common shares of Five Centavos, Philippine Currency (P0.05) per share. the record date and payment date will be set after approval by the regulatory agencies of the dividend declared. CaSh DIVIDenD: CaSh - P0.05 per common share reCorD Date - to be announced PayMent Date - to be announced

BDo leasing and Finance, Inc (BDolF)

Act now or two degree temp rise likely

o2 emissions were at a record high in 2010 according to the International energy agency (Iea) as growing economies pump more emissions into the atmosphere and threaten to help derail efforts to limit global warming to the agreed Un target of 2 degrees Celsius. the Iea says 2010's Co2 emissions were the highest in history and 80 percent of projected emissions for 2020 can't be stopped. While the financial crisis of 2009 was bad for economies, it was good for the environment, but the recovery - largely powered by emerging economies like China and India - has seen emissions jump 5% over the previous record year, 2008, to 30.6 Gigatonnes (Gt). the power industry will continue to grow according to the Iea with 80 percent of emissions for 2020 likely to come from existing or planned power production. "this significant increase in Co2 emissions and the locking in of future emissions due to infrastructure investments represent a serious setback to our hopes of limiting the global rise in temperature to no more than 2 degrees Celsius," said Dr. Fatih Birol, Chief economist at the Iea who oversees the annual World energy outlook, the agency's flagship publication. the 2 degree target was agreed by governments at the 2010 Un climate change conference in Cancun, Mexico. to hit that target would mean limiting the increase in Co2 to 5 percent over the levels in 2000. "our latest estimates are another wake-up call," said Dr Birol. "the world has edged incredibly close to the level of emissions that should not be reached until 2020 if the two degrees Celsius target is to be

Environment

June 5-12 2011

Songbirds tweak tunes against noise

SoMe birds that live near noisy sites can alter their songs to deal with din. But closely related species with similar songs may tweak their tunes in different ways, says a new study led by Clinton Francis of the national evolutionary Synthesis Center in Durham, north Carolina. the study is part of a growing field that looks at noise pollution and its effects on wildlife. honking horns, blaring sirens, and roaring machinery are particularly problematic for birds, Francis said. Birds rely on songs to defend their territories and attract a mate. "When something interferes with their ability to hear each others' songs, it can lead to a communication breakdown," Francis explained. noise can drown out other sounds in the environment too, like approaching predators, he added. While some birds can cope with noise by altering their songs, less flexible birds may have to abandon noisy areas altogether. Can we predict which species will be able to adjust their songs, and which will be forced to flee? Scientists would like to be able to predict which species will be most threatened by an increasingly noisy world, Francis said. to do that, it helps to know if closely related species respond similarly to noise. to find out, Francis and his colleagues surveyed two closely related species with similar songs the grey vireo and the plumbeous vireo both living near natural gas extraction sites in the Bureau of land Management's rattlesnake Canyon Wildlife area in northern new Mexico. Since 2005, Francis has studied the effects of industrial-grade noise from natural gas wells on songbirds. the advantage of studying these sites, Francis notes, is they offer plenty of noise without the confounding factors that plague noise studies near roadways, such as pollution and collisions. Some gas wells are coupled with noisy compressors that extract the gas and transport it through pipelines. the compressors roar and rumble day and night, 365 days a year at greater than 95 decibels a noise level comparable to a motorcycle less than 50 feet away. "you need hearing protection if you're next to them," Francis said. the researchers counted and recorded plumbeous vireos and grey vireos living near natural gas wells with noisy compressors. they then compared this data with song and survey data they collected from quiet wells without compressors. the results, published this week in Biology letters, showed the two species are just as common in noisy sites as quiet ones, but they alter their songs in different ways. each vireo's song is a short whistled phrase with multiple notes, like a musical score, Francis explained. "Plumbeous vireos raised the pitch of the lowest part of their song, while grey vireos raised the pitch of the highest part of their song," Francis said. Singing higher-pitched songs may make them easier to hear above the low frequencies typical of human-made noise, he added. Both birds also changed the length of their songs, but in opposite ways. Whereas plumbeous vireo songs got shorter with increased background noise, grey vireo songs grew longer. "Grey vireo songs in noisy sites were nearly one and a half times as long as their counterparts in quiet sites," Francis said. the results back up other studies showing some birds can cope with noise by altering their songs. But given the different modifications made by closely related species, it may be difficult to predict what these altered songs will sound like in diverse bird communities, Francis said. "Closely related species may use different strategies to deal with noise," he said. the researchers report their findings in an issue of Biology letters.

attained. Given the shrinking room for manoeuvre in 2020, unless bold and decisive decisions are made very soon, it will be extremely challenging to succeed in achieving this global goal agreed in Cancun." Coal accounted for 44 percent of the estimated Co2

emissions in 2010, oil for 36 percent and 20 percent came from natural gas. While more of the growth came from new economies, the developed world still emits almost double the amount of Co2 per head than China and nearly five times more than India.

assessing alaska glaciers is slippery work

WIth an estimated 34,000 square miles of ice, an area about the size of Maine, alaska's multitude of glaciers have a global impact. anthony arendt, an assistant research professor at the University of alaska Fairbanks Geophysical Institute, has outlined the complexity and influence of alaska glaciers in this week's issue of the journal Science. In his article, arendt explains the importance of integrating field observations and more precise glacier simulation models. "We have used satellites to measure the mass changes of all of alaska's glaciers, but there are also many glaciers that need to be measured in the field," arendt said. "We need these field observations to better understand the processes that are controlling glacier changes." Glacial patterns are difficult to predict even for current computer models. alaska glaciers often behave independently of one another. they retreat and surge, and are subject to volcanic and oceanic influences, in addition to changes in precipitation and warming temperatures. Data collected in the field will help refine existing models, so that a more accurate picture of changing sea level can be drawn. "alaska glaciers have been losing mass more rapidly since the mid-1990s than they were several decades earlier," arendt states in the article. "Understanding whether this trend continues will require an integration of observations across disciplines, as well as the development of robust glacier simulation models." according to arendt, glaciers and ice caps make up a mere three percent of the ice on our planet, yet they account for about half of the sea level contribution. these dynamic chunks of ice are tremendously influential on future coastlines. "there are many people living very close to the sea in areas where even a small change in sea level would be devastating," arendt said. "Developing countries don't have the resources to deal with this change." to create the best sea level forecasts, arendt said that scientists need to use field observations to fill data gaps in current models. With thousands of glaciers in alaska, scientists have much more work to do, he said, noting that the research will ultimately help the global community better adapt to sea level change.

Grey vireos (Vireo vicinior) cope with noise by singing longer songs with higher maximum frequencies than their counterparts at quiet sites. In contrast, Plumbeous vireos (Vireo plumbeus) in the same noisy areas sing shorter songs with higher minimum frequencies.

InCreaSInG levels of ocean acidity could spell doom for British Columbia's already beleaguered northern abalone, according to the first study to provide direct experimental evidence that changing sea water chemistry is negatively affecting an endangered species. the northern abalone-prized as a gourmet delicacy-has a range that extends along the north american west coast from Baja California to alaska. even though British Columbias northern abalone commercial fisheries where closed in 1990 to protect dwindling populations, the species has continued to struggle, largely due to poaching. to better understand the impact climate change and specifically, increasing ocean acidity has on this endangered species, UBC researchers exposed northern abalone larvae to water containing increased levels of Co2. Increases from 400 to 1,800 parts per million killed 40 per cent of larvae, decreased the size of larvae that did survive, and increased the rate of shell abnormalities. "this is quite bad news, not only in terms of the endangered populations of abalone in the wild,

Ocean acidity endangers gourmet sea snail

but also the impact it might have on the prospects for aquaculture and coastal economics," says Christopher harley, associate Professor with the Department of Zoology and one of the authors of the study. "and because the species is already thought to be limited by reproductive output and recruitment, these effects are likely to scale up to the population level, creating greater limits on population growth." average Co2 levels in the open ocean hover at 380 parts per million, a number which is excepted to increase slowly over the next century. What concerns the researchers are the much higher spikes in dissolved Co2 that are already being observed along the BC coast, particularly in late spring and early summer when northern abalone populations are spawning. the findings were published in the latest issue of the Journal of experimental Marine Biology and ecology. "While were looking at a single species that is culturally important as a source of food and artistic inspiration for many coastal Pacific northwest First

nations, this information may have implications for other abalone species in other parts of the world," says ryan Crim, lead author on the paper who conducted the research while a graduate student with the UBC Department of Zoology. other species of abalone are farmed around the world, principally in China, taiwan, Japan and Korea. the black, white and pink abalone are also endangered on the west coast--red abalone are still an economically viable food species. the study was funded by the natural Sciences and engineering research Council of Canada and conducted in collaboration with the Bamfield-huu-ay-aht Community abalone Project, a small abalone hatchery in Bamfield which has subsequently gone out of business. the dual mission of the hatchery was to produce cultured abalone for high end restaurants, and to restore endangered abalone by culturing and releasing larvae and juveniles to the wild. harley and Crim will continue to work with the aquaculture industry to study the effects of acidification on oysters and other shellfish.

June 5-12 2011

Who agency says cellphones may be carcinogenic

the World health organization International agency for research on Cancer (IarC) has classified radiofrequency electromagnetic fields as possibly carcinogenic to humans (Group 2B), based on an increased risk for glioma, a malignant type of brain cancer associated with wireless phone use. there were 237 913 new cases of brain cancers (all types combined) around the world in 2008 (gliomas represent 2/3 of these. over the last few years, there has been mounting concern about the possibility of adverse health effects resulting from exposure to radiofrequency electromagnetic fields, such as those emitted by wireless communication devices. the number of mobile phone subscriptions is estimated at 5 billion globally. From May 2431 2011, a Working Group of 31 scientists from 14 countries has been meeting at IarC in lyon, France, to assess the potential carcinogenic hazards from exposure to radiofrequency electromagnetic fields. these assessments will be published as Volume 102 of the IarC Monographs, which will be the fifth volume in this series to focus on physical agents, after Volume 55 (Solar radiation), Volume 75 and Volume 78 on ionizing radiation (X-rays, gamma rays, neutrons, radio nuclides), and Volume 80 on non ionizing radiation (extremely low frequency electromagnetic fields). the IarC Monograph Working Grup discussed the possibility that these exposures might induce long term health effects, in particular an increased risk for cancer. this has relevance for public health, particularly for users of mobile phones, as the number of users is large and growing, particularly among young adults and children. the IarC Monograph Working Group discussed and evaluated the available literature on the following exposure categories involving radiofrequency electromagnetic fields: occupational exposures to radar and to microwaves; environmental exposures associated with transmission of signals for radio, television and wireless telecommunication; and personal exposures associated with the use of wireless telephones. International experts shared the complex task of tackling the exposure data, the studies of cancer in humans, the studies of cancer in experimental animals, and the mechanistic and other relevant data. the evidence was reviewed critically, and overall evaluated as being limited among users of wireless telephones for glioma and acoustic neuroma, and inadequate to draw conclusions for other types of cancers. the evidence from the occupational and environmental exposures mentioned above was similarly judged inadequate. the Working Group did not quantitate the risk; however, one study of past cell phone use (up to the year 2004), showed a 40% increased risk for gliomas in the highest category of heavy users (reported average: 30 minutes per day over a 10 year period). Dr. Jonathan Samet (University of Southern California, USa), overall Chairman of the Working Group, indicated that "the evidence, while still accumulating, is strong enough to support a conclusion and the 2B classification. the conclusion means that there could be some risk, and therefore we need to keep a close watch for a link between cell phones and cancer risk." "Given the potential consequences for public health of this classification and findings," said IarC Director Christopher Wild, "it is important that additional research be conducted into the long term, heavy use of mobile phones. Pending the availability of such information, it is important to take pragmatic measures to reduce exposure such as hands free devices or texting.

Health & Wellness

aDDInG just a few more weeks of pregnancy can cut a newborn's risk of death in half even if the pregnancy has reached "term" -- adding more evidence to the argument that continuing a pregnancy to at least 39 weeks is crucial to a baby's health. the research by a team of investigators from the March of Dimes, the national Institutes of health and the US Food and Drug administration found that although the overall risk of death is small, it more than doubles for infants born at 37 weeks of pregnancy, when compared to babies born at 40 weeks, for all races and ethnicities. In 2006, the infant mortality rate was 1.9 for every 1,000 live births for babies born at 40 weeks of pregnancy. the mortality rate increased to 3.9 per 1,000 when a baby was born just a few weeks earlier at 37 weeks of pregnancy, the study found. "there is the perception that babies born between 37 and 41 weeks of pregnancy are all born healthy. But this study confirms that even babies born just a week or two early have an increased risk of death," said alan r.

39 week pregnancy cuts newborn death rish in half

Fleischman, MD, senior vice president and medical director at the March of Dimes. "It is clear, that regardless of race or ethnicity, every additional week of pregnancy is critical to a baby's health." While there are times when medical reasons require a baby to be delivered early, an early elective delivery is harmful to a baby and should never be scheduled before 39 or 40 weeks of pregnancy. the study titled: "term pregnancy: a period of heterogeneous risk for infant mortality," was led by Uma M. reddy, MD, MPh of the eunice Kennedy Shriver national Institute of Child health and human Development, of the national Institutes of health, was published in obstetrics & Gynecology, Vol. 117, no. 6, June 2011. Preterm birth is less than 37 completed weeks of pregnancy. Until recently, babies born after 37 weeks of pregnancy were evaluated as a single, homogenous group, the March of Dimes says. the investigators found that early term infants had higher infant and neonatal mortality

rates when compared to full term infants for every year from 1995 to 2006. neonatal infant mortality rates were highest for infants born at 37 weeks of pregnancy, and declined for each additional week until 40 weeks, which had the lowest neonatal death rates. the trend was the same for all races and ethnicities. however, of the infants in the study nonhispanic black infants had the highest infant mortality rates and the smallest declines at 37 and 38 weeks, the researchers said. "although infant mortality rates overall improved in the past decade, rates for non-hispanic black babies born at 37 or 38 weeks of pregnancy remain unacceptably higher than other racial and ethnic groups," said Dr. reddy. "our results indicate that intervention programs are needed for this high-risk group, as is additional research to understand why non-hispanic black infants are less likely than other groups to live to celebrate their first birthday." the March of Dimes is the leading nonprofit organization for pregnancy and baby health.

Eat, drink and be sleepy with these natural aids

SleeP restores us. and not getting enough of it can put us at greater risk of heart disease and cancer. Sleep even makes us smarter. yet researchers are finding that more than 10 percent of the population is chronically sleep deprived. If you're having trouble slipping intoand remaining inDreamland, don't dart straight to prescription sleep drugs, which can be habit-forming, harmful if you live with certain conditions, and even downright bizarre! (Some people develop sleepeating and sleep-driving habits when using prescription sleeping pills.) yahoo health said the good news is, science has found that many foods, drinks, herbs, and other natural sleep aids can help put you to sleep... naturally. In fact, just this summer, researchers made the connection between tart cherry juice and getting adequate shut-eye. here are some natural food- and drink-based sleep aids. Cherries In the small study, participants drank eight ounces of the tart cherry (also known as sour cherry) juice in the morning, and another eight ounces in the evening, for two weeks and reported better sleeping habits. Since all cherries are naturally high in melatonin, a compound that makes us sleepy, you can try eating a cup as a snack before it's time for shut-eye if you'd rather not drink the juice. Fish Certain fish and sea creatures contain sleep-inducing tryptophan, including shrimp, cod, tuna, and halibut. But since not all seafood choices are healthy for us (some are high in contaminants) or for the planet (many are overfished, or methods for catching them kill other species), stick to catches like Pacific cod from alaska or polecaught albacore tuna from the US or British Columbia. Carb/Protein Combo If keeping track of the latest safe seafood guidelines is too complicated, you can get your tryptophan fix from other things. you've probably heard that warm milk can help you sleep, since milk contains tryptophan. But the key is to combine carbs with a protein containing tryptophan to help your body better utilize the sleep inducer. try pairing a cup of whole grain cereal with organic milk before bedtime. Lemon Balm this lemon-scented member of the mint family has been a sleep-inducing superstar for ages. other benefits include better digestion and decreased agitation. try making lemon balm tea by steeping 1 to 2 teaspoons of the dried herb in 1 cup of hot water for 5 to 10 minutes. (If you take thyroid meds, talk to you doctor drinking the tea could mean you'll have to adjust your dosage.) Other Herbs If lemon balm's not your thing, another herb, sage, also works as a natural sleep aid. Just steep 4 tablespoons in a cup of hot water, steep for four hours, strain, and reheat to drink. Chamomile tea and valerian teas, other sleep inducers, are also more widely available prebagged in natural food stores, if you don't want to fuss with the aforementioned straining herbs.

External trade

June 5-12 2011

Marc

JanUary to MarCh 2011 total traDe StanDS at $27.805 BIllIon total external trade in goods for the first quarter of 2011 (January to March) reached $27.805 billion, a 15.4 percent increment from $24.104 billion registered during the same period in 2010. total imports posted a 22.0 percent annual increase to $15.586 billion from $12.772 billion. Similarly, total exports were up by 7.8 percent to $12.219 billion in January to March of 2011 from $11.331 billion in 2010. thus, the balance of trade in goods (Bot-G) for the Philippines posted a deficit of $3.368 billion during the 3-month period in 2011, a value higher than the $1.441 billion deficit in the

(Semiconductors) having the biggest share of 31.8 percent, accelerated by 53.6 percent to $1.755 billion from $1.142 billion last year. Imports of Mineral Fuels, lubricants and related Materials in March 2011 ranked second with 15.5 percent share to $858.18 million over the previous years level of $775.53 million. transport equipment registered as the countrys third top import for the month with 4.7 percent share to total imports valued at $258.75 million. the

same 3-month period last year. MarCh 2011 IMPortS UP By 21.2 PerCent the countrys total merchandise imports for March 2011 rose by 21.2 percent to $5.523 billion from $4.556 billion in 2010. Similarly, month-on-month, it increased by 16.0 percent from $4.761 billion recorded in February 2011. total trade for March 2011 was registered at $9.876 billion, higher by 13.0 percent from $8.738 billion in March 2010. thus, the balance of trade in goods (Bot-G) in March 2011 posted a deficit of $1.170 billion compared to last years recorded deficit value of $374.00 million.

e l e C t r o n I C ProDUCtS aCCoUnt For 37.2 PerCent oF IMPort BIll accounting for 37.2 percent of the aggregate import bill, payments for electronic Products (including consigned and direct importation using the expanded coverage of electronic products) in March 2011 amounted to $2.054 billion. It went up by 36.4 percent over last year's figure of $1.506 billion. on a monthly basis, it expanded by 36.0 percent from $1.510 billion recorded in February 2011. among the major groups of electronic products, Components/Devices

e performance

June 5-12 2011

ch 2011

million worth of imports and posted the highest positive annual growth among the top ten imports in March 2011 at 70.1 percent from March 2010

recording and reproducing apparatus and equipment, $100.98 million (1.8%). aggregate payment for the countrys top ten imports for

10.7 percent to $858.18 million from $775.53 million in March 2010. Purchases of Consumer Goods amounted to $556.84

value expanded by 8.9 percent from previous year level of $237.54 million. Industrial Machinery and equipment, contributing 4.4 percent to the total import bill was the Phs fourth top import for the month with payments placed at $243.87 million, an increase of 20.6 percent

from last years $202.30 million. Fifth in rank and with a 3.0 percent share to the total imports, organic and Inorganic Chemicals recorded $164.01 million, higher by 56.8 percent from its year ago level of $104.59 million. Plastics in Primary and nonPrimary Forms ranked sixth, comprising 2.6 percent of the total imports registered $142.72

level of $83.89 million. rounding up the list of the top ten imports for 2011 were Iron and Steel valued at $124.39 million (2.3%);Cereals and Cereal Preparations amounting to $115.06 million (2.1%); Metalliferous ores and Metal Scrap, $111.05 million (2.0%); and telecommunication equipment and electrical Machinery including telecommunications and sound

2011 reached $4.173 billion or 75.6 percent of the total import bill. r a W MaterIalS anD I n t e r M e D I at e GooDS aCCoUnt For 50.7 PerCent oF the total IMPortS accounting for 50.7 percent of the total imports, payments in March 2011 for raw Materials and Intermediate Goods amounted to $2.800 billion or a 75.7 percent increment over last year's figure of $1.593 billion. Compared to the previous months level, purchases climbed to 31.4 percent from $2.130 billion. Semi-Processed raw Materials had the biggest share of 45.3 percent and valued at $2.504 billion grew by 75.7 percent from $1.425 billion. Capital Goods, which comprised 22.5 percent of the total imports, declined by 3.7 percent from $1.293 billion in March 2010 to $1.245 billion. Mineral Fuels, lubricants and related Materials with 15.5 percent share, increased by

million or a decrease of 32.4 percent from $824.10 million in 2010. likewise, Special transactions fell by 10.0 percent from $69.29 million in March 2010 to $62.35 million in March 2011. .IMPortS FroM the USa aCCoUntS For 11.5 PerCent Comprising 11.5 percent share of the total import bill, United States of america (USa) including alaska and hawaii was reported as the countrys biggest source of imports for March 2011 with $636.48 million, an increase of 40.5 percent from $453.04 million in March 2010. exports to USa amounted to $608.75 million, yielding a two-way trade value of $1.245 billion and a trade deficit for Ph of $27.73 million. Japan including okinawa was the second biggest source of imports with 10.4 percent share and recorded payments worth $576.83 million. this number represents a 3.7 percent drop from $598.85 million in March 2010. revenue from Phs exports to Japan, on the other hand, reached $760.70 million, generating a total trade value of $1.338 billion and $183.87 million trade surplus for the Philippines.

eDItorIal

Opinion

June 5-12 2011

FDA should allay soy-sauce fears

.It is a bit surprising to learn that despite the reported findings about cancer-inducing soy-sauce products found in the shelves of our supermarkets, Food and Drug administration (FDa) Director Suzette lazo seems to have her priorities elsewhere. of course, it is nice to know she has taken issue with the injectible skin-whitener glutathione and endorsed the monitoring of food products from taiwan that are said to have toxic food additives. But the soy sauce with carcinogenic substances should have been her top priority, since soy sauce is the favorite dip of Pinoys. Concerns had long been raised over the safety of soy-sauce brands sold in our markets since the findings of toxic substances in the sauce were publicized in Britain, the euro zone and the United States. In the Philippines there is a growing anxiety over the safety of soy-sauce brands that are popular in public markets on a repack basis, or tingi. the worry is that there may not have been enough sanitary safeguards in the repacking to ensure the integrity of the products, meaning they are toxin-free. the toxic substance is called 3-monocholoropane, or 3-MCPD. It has reportedly been found more than five years ago not just in those cheap repacked soy-sauce sachets but even in the more expensive soy-sauce brands in supermarkets. thats why we wonder why Dr. lazo gave a higher priority to her brewing battle with dermatologists. Maybe its not too late to remind her that soy sauce is a major consumer item and her indifference to problems affecting it may invite political attention that could only get her in hot water. Unless the FDa has been doing its work without fanfare, we keep wondering how it has so far evaded the soy-sauce toxin issue. In other countries, the worry over 3-MCPD has prompted their leaders to act promptly. Many governments have already imposed strict limits on the levels of 3-MCPD substances in their soy-sauce products and are strictly monitoring compliance by manufacturers. In Britain, for example, the government has been doing extensive testing on soy-sauce products imported from asia and has reportedly found a significant percentage of such products to be contaminated. according to an Internet report, a sample from a soy- sauce product from the Philippines has been found to contain 3-MCPD above the mandatory limit set by european Union countries. the brand alleged to have substantial 3-MCPD presence reportedly carries a label that sounds like a tropical fruit. Did that report catch the attention of the FDa? that incident happened in 2006. Did the FDa deliberately keep that report under wraps? If yes, then we should really be afraid. that brand is widely sold here. It has been five years since that incident took place. has the FDa taken steps to address the issue? We are sorry to ask Dr. lazo to defer her battle royale with renowned and expensive dermatologists. Skin whiteners can wait. the ordinary Filipino who enjoys soy sauce with potentially toxic 3-MCPD levels cannot. Security Bank partners with Marubeni Security Bank Corp., the no.1 bank in terms of return on equity (roe), has partnered with Marubeni Corp. of Japan in a leasing company that will initially focus on construction equipment, trucks and buses. the partnership was announced by bank president alberto S. Villarosa in yesterdays stockholders meeting at the Jonathan Dy hall in the bank headquarters on ayala avenue. the new venture is expected to further pad the banks roe, which topped the field with a 34.6-percent return. Partnership with Marubeni Corp. offers immediate benefits to the new leasing company, given its other joint ventures in the Philippines. technology transfer is an added advantage with Marubenis experience in heavy-equipment leasing in other countries. In addition, Marubeni offers a well-known brand that will be beneficial to the new leasing company, which is a 60-40 joint venture, with the majority to be taken by Security Finance Inc., Villarosa told stockholders who applauded the cash-dividend declaration of the bank of a total of P1 per share. having made P1.01 billion for the first quarter this year despite trying times, an increase of 8.5 percent from the comparative period last year, the bank is expected to have synergy with the Marubeni tiein. the Japanese firm is strong in a broad range of sectors, ranging from power and infrastructure projects, real-estate development and business investment. thus, Security Bank, which is on the prowl for a bank acquisition, is seen to maintain its preeminence in terms of shareholders returns. With a capital adequacy ratio of 21.8 percent, way above the Bangko Sentral and international requirements, a capital base of P24.6 billion, and impressive asset-quality levels with its nonperforming loans (nPls) below P1 billion and an nPl cover of 319 percent unmatched in the industrythe bank is well on the way to proving its preeminence in the roe game. the roe is a financial yardstick that legendary stock investor Warren Buffett looks at before buying into a company.

View from the East

By JESuS T. TAnCHAnCO SR.

Agricultural productivity
to achieve self-sufficiency in rice and other Irrigation facilities need to be built also. agricultural crops, what the government needs Irrigated farms allow for more than two harvests is to bolster agricultural productivity. this, in the case of rice. In fact, there have been we believe, is the most important thrust of the instances when the ricefields boast of three Department of agriculture (Da). By having harvests because of irrigation. agricultural productivity as main priority of the the irrigated farmland translates into department all of the resources will have to be agricultural productivity because the farmers directed at this singular goal. can prepare for two to three harvests. that alone agricultural productivity comes in many increases rice production, enough cushion to shapes and hues. there is the infrastructure prevent bigger outlays for the importation of support, the raw materials availability, the rice. funding mechanism and education. opening of new roadways such as the ro-ro For the infra support, the government and that connects the islands in the Visayas also results its instrumentalities can put up farm-to-market in agricultural productivity. those from Capiz and roads, set up irrigation facilities, undertake new Iloilo, for instance, can transport their produce roadways, build silos, and even establish roll-on, through the ro-ro nautical highway. With the roroll-off interchanges. ro, they generate additional income unlike before the farmers in the countryside are hostage when they cannot market their produce. to the vagaries of agribusiness. agricultural a side economic benefit of the nautical products that do not reach the market, usually highway is lower prices for consumer goods that located from five to 10 kilometers away, become are transported to Iloilo and Capiz for instance. rotten resulting in huge losses for the farmers. For the farmers, the benefits of the ro-ro highway this is why it is crucial for the government is manifold: they raise extra cash for their farm to set up mechanisms for the farmers to be able produce and in return let them buy what they to sell their produce. Until this is assured, they need at a much lower cost. this could range from will continue to remain hostage to poverty softdrinks to household products. simply because they cannot raise money for thus, the pursuit of agricultural productivity their needs. becomes doubly beneficial for the farmers. But by freeing the farmers from the waste What does this mean? Well, the farmers raise that occur when they cannot sell their produce the economic activity in their respective immediately, the government will be seeing areas and contribute towards nation building. huge growths in the countryside, courtesy of the and all because of the thrust on agricultural infra support. productivity. the silos also are equally important. By storing the agriculture products, the farmers can demand higher prices for their products. this is what makes the kibbutz system of agriculture in Israel a success. With the LITO u. GAGnI kibbutz system, the silos editor or warehouses for the CEFERInO M. ACOSTA III agricultural products are news stored with those first JAMES u. GAGnI deposited being the first researcher to be disposed. In short, RAMIL T. SARMIEnTO layout there is no wastage. RAuL S. GOnZALEZ, BERnARDO PACHECO, another benefit ALFRED SAnTIAGO JR., GEORGE T. SIY of the silos is that the Contributing editors farmers can be assured of commanding a better Business Matters is published every Monday by Grandbooks Publishing price for their products Inc. with editorial and business address at 50 M.r. Flores St. ext., since their release will Sto. rosario Kanluran, Pateros, M.M. telephones: (632) 628-43-48 Fax: (632) 628-38-82 spaced out so that e-mail: businessmatters@hotmail.ph the farmers sell their products at a higher price.

June 5-12 2011

the First Quarter 2011 Social Weather Stations Survey, fielded over March 4-7, 2011, found that adult unemployment rose to 27.2 percent, or an estimated 11.3 million, from 18.9 percent (7.4 million) in September 2010 and 23.5 percent (9.9 million) in november 2010. the survey also revealed that 9 percent of the unemployed were retrenched, 10 percent resigned or voluntarily left their old jobs, and 7 percent first-time job seekers. the retrenchment consisted of 7 percent whose previous contact was not renewed, 1 percent whose employer closed operation, and 1 percent who were laid off. Unemployment has been high since 2005 From May 2005 to March 2011, adult unemployment in the SWS surveys has been below 20 percent in only 3 out of 23 surveys, when it was 19.9 percent in March 2006, 17.5 percent in December 2007, and 18.9 percent in September 2010. In the SWS data series which began in 1993, unemployment was below 15 percent until March 2004, and then ranged from 16.5 percent to 19 percent from august 2004 to March 2005. the new unemployment rate of 27.2 percent is similar to the levels of 27.3 percent in December 2009 and 27.1 percent in March 2010. over the past two quarters, adult unemployment has been dominated by those who voluntarily left their old job, and those who lost their jobs through economic circumstances beyond their control. From the previous quarter, the proportion of those whose contracts were not renewed went from 5 percent to 7 percent,

Unemployment rose to 27.2% in 1Q2011 -- SWS

those who were who were laid off went from 2 percent to 1 percent, and those whose employers c l o s e d operation stayed at 1 percent. those who resigned or left their old jobs voluntarily went from 11 percent in november 2010 to 10 percent in March 2011, while first-time job seekers went from 4 percent to 7 percent. the SWS data on

those not working and looking for work. however, from april 2005 onward, the new official definition has included the concept of availability for work; it subtracts those not available for work, even though looking for work, and adds those available for work but not seeking work for the

unemployment refer to the population of adults in the labor force. this is because respondents in the standard SWS surveys are those at least 18 years old. the 1993-2008 figures are consistently based on the traditional definition of unemployment as not working and at the same time looking for work. those not working but not looking for work are excluded from the labor force; these are housewives, retired, disabled, students, etc. on the other hand, the official lower boundary of the labor force has always been 15 years of age. Formerly, the official definition of the unemployed was

following reasons: tired/believe no work is available, awaiting results of a job application, temporarily ill/disabled, bad weather, and waiting for rehire/ job recall. If the official definition is applied, the unemployment rate among adults 18 years old is 16.8 percent (estimated at 6.1 million) in the SWS March 2011 survey. It is lower than when computed using the traditional definition because the correction for those looking for work but 'not truly available' is much larger than the correction for those 'actually available' though not looking for work at the moment.

Approved FDI plunges by 52.8 percent in Q1 2011

the total for foreign direct investments (FDI) approved in the first quarter of 2011 by the four major investment promotion agencies (IPa) was at P22 billion, 52.8 percent lower than the FDI approved in Q1 2010. Despite this, the foreign and Filipino ventures approved by the four major IPas in Q1 2011 are expected to create 41,205 jobs, 1.5 percent higher than last years projected employment of 40,612. out of these total expected jobs, 79.1 percent or 32,582 jobs would come from investments with foreign interest while the remaining 20.9 percent or 8,623 are from Filipino investors except for the Board of Investments (BoI), the other IPas namely Clark Development Corporation (CDC), Philippine economic Zone authority (PeZa), and Subic Bay Metropolitan authority (SBMa) suffered setbacks in FDI applications with SBMa and CDC registering the highest decline of 93.7 and 92.0 percent, respectively. the national Statistics Coordination Board said that FDI as defined in the Balance of Payments (BoP) Manual, are investments made to acquire a lasting interest by a resident entity in one economy in an enterprise resident in another economy. the purpose of the investor is to have a significant influence, an effective voice in the management of the enterprise. a statement from the nSCB said the United States of america Japan and Korea at P4.7 billion or 21.5 percent, and P3.8 billion or 17.5 percent, respectively. Manufacturing remained as the top recipient of FDI commitments as it stands to receive 76.1 percent of the total trailing far behind are administrative and support service activities at P1.8 billion or 8.2 percent, and real estate activities at P1.5 billion or 6.7 percent worth of investment commitments. quarter of 2011, up by 76.5 percent from last years P91.8 billion. Filipino nationals more than made up for the decrease in FDI by committing P139.9 billion in investments for Q1 2011, more than three times the P45.1 billion committed a year ago. actual FDI in the Balance of Payment (BoP) for January to February 2011 recorded a net inflow of $304.0 million, 38.7 percent lower than the $496.0 million recorded a year ago the combined approved investments of foreign and Filipino nationals reached P161.9 billion in the first quarter of 2011, up by 76.5 percent from last years P91.8 billion. of the combined investment pledges, 86.4 percent or P139.9 billion would come from Filipino investors. Majority of investments committed by Filipinos are intended to finance activities in manufacturing, particularly petroleum In the area of information and communications technology (ICt), proposed investments of foreign and Filipino nationals declined by 65.0 percent from P25.7 billion committed in the first quarter of 2010 to P9 billion in the first quarter of 2011. ICt shared 5.6 percent of total approved investments of foreign and Filipino nationals during the quarter.

(USa) led all other countries with investment pledges of P6.7 billion, accounting for 30.6 percent of total approved FDI during the quarter, followed by

approved FDI. the amount of P16.8 billion intended to fund projects in manufacturing is however 60.9 percent lower than last years P42.9 billion.

Despite the decrease in FDI, the combined approved investments of foreign and Filipino nationals reached P161.9 billion in the first

10

Motoring
efficiency and greenhouse gas emissions standards, resulting in the historic standards that will be represented by these new labels. this is the latest step in ePa's and Dot's joint efforts to improve the fuel economy and environmental performance of vehicles and to provide consumers with useful information to inform their purchasing decisions. the 2010 fuel economy rule, developed with input from major automakers, environmental developing the next generation of joint fuel economy/greenhouse gas emission standards for model year 2017-2025 passenger vehicles and expects to announce the proposal in September 2011. For the firtst time, the new labels will provide: new ways to compare energy use and cost between new-technology cars that use electricity and conventional cars that are gasoline-powered; useful estimates on how much consumers will save or spend driving behavior in order to get a more precise estimate of fuel costs and savings. Consumers will see the new labels in showrooms early next year, when 2013 models begin arriving. automakers may also voluntarily adopt the new labels earlier for model year 2012 vehicles. "President obama's work to shape a Clean Cars program is fostering a marketplace of cutting-edge american vehicles that are more fuel efficient than ever before. the ePa and Dot are creating a new generation of fuel economy labels to meet the needs of a new generation of innovative cars," said ePa administrator lisa P. Jackson. "today's car buyers want the

June 5-12 2011

uS cars in 2013 get new economy labels

the US Department of transportation and the environmental Protection agency have unveiled new fuel economy labels that will help consumers take advantage of the increased efficiency standards set under under the obama administration that are designed to allow families to save money at the pump starting this year. In a statement, the national highway traffic Safety administration said the new labels are the most dramatic overhaul to fuel economy labels since the program began more than 30 years ago. the labels now provide more comprehensive fuel efficiency information, including estimated annual fuel costs, savings, as well as information on each vehicle's environmental impact. the new labels underscore the benefits of the historic, bipartisan passenger car and truck fuel economy rule adopted under this administration by the ePa and Dot in 2010. these improvements will give consumers better, more complete information to consider when purchasing new vehicles that are covered by the increased fuel economy standards. Starting with model year 2013, the improved fuel economy labels will be required to be affixed to all new passenger cars and trucks -- both conventional gasoline powered and "next generation" cars, such as plug-in hybrids and electric vehicles. President obama had directed Dot and ePa to prioritize the development of new fuel best possible information about which cars on the lot offer the greatest fuel economy and the best environmental performance. the new labels provide comprehensive information to american car buyers, helping them make a choice that will save money at the gas pump and prevent pollution in the air we breathe." "our new fuel economy and environmental labels are a win for automobile consumers and for the nation's energy independence," said US transportation Secretary ray lahood. "these labels will provide consumers with up front information about a vehicle's fuel costs and savings so that they can make informed decisions when purchasing a new car."

Pirelli calls for F1 rules change

groups, and the states, will dramatically increase the energy efficiency of cars and trucks built in model years 2012 through 2016, saving 1.8 billion barrels of oil over the life of the program and the average consumer $3,000 in fuel costs. In July, the administration plans to finalize the firstever national fuel economy and greenhouse gas emission standards for commercial trucks, vans and buses built in 2014 to 2018. these standards are expected to save hundreds of millions of barrels of oil over the life of the vehicles covered and promote the development and deployment of alternative fuels, including natural gas. the administration is also on fuel over the next five years compared to the average new vehicle; easy-to-read ratings of how a model compares to all others for smog emissions and emissions of pollution that contribute to climate change. the new labels will also contain information on: an estimate of how much fuel or electricity it takes to drive 100 miles; information on the driving range and charging time of an electric vehicle; and a Qr Code that will allow users of smartphones to access online information about how various models compare on fuel economy and other environmental and energy factors. this tool will also allow consumers to enter information about their typical commutes and PIrellI motorsport director Paul hembery has suggested that Formula one's rules should be changed to prevent drivers having fresh tires put on their cars if a race is halted. Such a scenario came to pass in the closing laps of Sunday's Monaco Grand Prix, thus denying the prospect of a thrilling finale involving Sebastian Vettel, Fernando alonso and Jenson Button, a story on espnstar.com said. Both alonso and Button closed down Vettel during the closing laps on the famous street race as the defending world champion's tires became increasingly worn. however, an accident further back in the pack then caused the race to be red-flagged with just six laps remaining. the tires on Vettel's car were subsequently changed on the grid and he led comfortably to the chequered flag once the race re-started. "I can understand there is a safety consideration but I am thinking about it more from a fans' perspective to be honest," hembery told autosport.com. "I've had a lot of people shout at me from the boats around the harbour and say, why were they allowed to change? It took away something from the race - and the big question was could they (the tires) have lasted? "that is what we were all asking with six laps to go and that was going to be the excitement: would Sebastian hit the cliff (of tire degradation)?" hembery said that, like the fans, he was disappointed with the outcome. "I don't really understand why they are allowed to change tires, but maybe I am missing something," he added. "I think it was a bit of a shame with the red flag of course, because if they hadn't changed the tires, then they would have had to fight to the end as they were all on different strategies, and the tire wear and life was very different."

Solon wants ban on children riding motorcycles

in an accident. "Parents and adults need to play a more active role in inculcating basic and good road safety values in children and must lead by example in displaying the correct attitude on the road and in abiding by traffic regulations. on the other hand, children of tender age must have a good basic foundation and understanding of what road safety is," acop stressed. Citing a report conducted by the Metropolitan Manila Development authority (MMDa), acop said records show that on the average, motorcycles have the highest fatality

alloWInG children to ride a motorcycle will soon be declared as a criminal act. rep. romeo acop (2nd District, antipolo City) urged his colleagues to support house Bill 3554, which aims to promote public safety and protection of children from the hazards of the road. "I am positive that the measure, which is under further study by the technical Working Group (tWG) of the house Committee on transportation will get positive results," acop said. In filing the bill, acop said riding a motorcycle, whether as a driver or rider requires a balance of body weight and the Habal-habal weight of the bike especially in high-speed driving. "Children's physical frailty and their acop said parents and adults must lack of agility as compared to that of an prevent children below nine years of adult while co-riding in a motorcycle age from riding a motorcycle as they are place them at great risk," acop said. exposed to a higher risk of being involved

accident rate among motor vehicles. among the leading causes of motorcycle accidents is overloading. "Motorcycle accidents can be minimized by a proactive, preventive approach in the shaping and implementation of traffic regulations. It is the declared policy of the State to ensure the safety of motorists through the imposition of an allowable number of riders in a motorcycle with respect to the nature of the motorcycle as a vehicle, its operation and the circumstances of riding peculiar to it correlative to the risk of accidents and crashes occurring involving it," acop said. Under the measure, it is prohibited for any person riding a motorcycle to take a child below nine years of age as a corider. Stiffer penalties shall be imposed on would be violators. the bill mandates the Department of transportation and Communication (DotC) with the land transportation office to promulgate the pertinent rules and regulations for the effective implementation of the proposed act.

June 5-12 2011

WIth With its final space mission 1 at Kennedy Space Center for "this is for 'museum-clean,'" not unprecedented, either. the in the history books, the shuttle technicians to begin removing said allard Beutel, naSa agency has already begun the endeavour begins preparations supplies and cargo, as they would spokesman at Kennedy Space transition work on the shuttle for a life of leisure as a museum following any shuttle mission. Center. "they're completely Discovery, which wrapped up showpiece. these activities should take flushing out the system. twenty its final mission, StS-133,in endeavour touched down at several weeks, naSa officials years from now, we don't want March. Discovery sits right next naSa's Kennedy Space Center said. some sort of piping to degrade door to endeavour, in orbital in Florida before sunrise last June When that's done, workers and suddenly drip hydrazine Processing Facility no. 2, where 1, bringing an end to its 16-day will begin the decommissioning [rocket fuel] on people." it is being readied for display at StS-134 spaceflight. only one process in earnest, taking some of the parts will then be the Smithsonian air & Space mission now remains for naSa's endeavour apart. they'll remove reattached to endeavour at KSC, Museum in Washington, DC. fleet of space shuttles: the StS-135 flight of atlantis, scheduled to launch July 8. after a lengthy decommissioning process, endeavour, the youngest orbiter in the fleet, should be ready to be shipped out west for display at the California Science Center in los angeles. "I imagine millions of people, hopefully millions of people a year, will get to enjoy getting up close to the space shuttle," StS-134 commander Mark Kelly told reporters from orbit. "I think we all look forward to visiting it in the science museum there. But it is a bittersweet moment. It's been a great spacecraft." naSa is retiring its space shuttle fleet after 30 years of spaceflight to make way for new deep-space missions aimed at visiting The landing convoy that will secure space shuttle Endeavour for towing to its processing hangar an asteroid by 2025 and encircles the vehicle landing on the Shuttle Landing Facilitys Runway 15 at NASAs Kennedy Mars by the mid-2030s. Space Center in Florida. Photo from NASA transforming endeavour from a flightready shuttle into a museum the thruster system inside the though the main engines will be "Discovery, as of early May, specimen is an involved process shuttle's nose, for example, as replicas. naSa will keep the officially is considered no longer that will take months. and it will well as the big engines on either original ones, which could be a flight-status shuttle," Beutel begin almost immediately, naSa side of its tail. useful references in the design told SPaCe.com. "It's considered officials said. these parts will be shipped or testing of new equipment, in transition to retirement." Shortly after landing, to a naSa facility in White officials have said. Discovery should be ready endeavour was rolled into Sands, new Mexico, for thorough the decommissioning work, for transport to the Smithsonian orbiter Processing Facility no. decontamination. while not old hat for naSa, is by January or February, Beutel

naSa readies endeavour for museum life

Science

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the national aeronautics and Space administration (naSa) is preparing a sophisticated new observatory, designed to study the relationship between the saltiness of earth's oceans and the planet's climate, for its launch into orbit next month. the earth-observing aquarius/SaC-D mission will measure the salt levels, or salinity, of the ocean surface, and the subsequent interactions between ocean circulation, the water cycle and other drivers of the planet's climate. "It's really going to be a great leap forward for the science of oceanography," eric lindstrom, aquarius program scientist at naSa headquarters in Washington, D.C. said in a recent briefing. "We have, in the earth science division, 13 missions on orbit now. a key missing piece, in demand by the ocean science community, is salinity. this determines the density of surface water of the ocean, and density variations and wind drive ocean circulation. this is why we want to get this missing piece." the $287 million aquarius satellite is set to launch June 9 atop a Delta 2 rocket from Vandenberg air Force Base on the central coast of California. as the observatory orbits 408 miles (657 kilometers) above earth, it will continuously take measurements on the concentration of dissolved salt at the ocean surface within a swath that is nearly 250 miles (400 km) wide per orbit. every seven days, aquarius will obtain enough data to be compiled into a complete and global map of ocean salinity. these observations will help

New satellite to sample salt in the seven seas Researchers butter up the old scratch test to make it tough
reveal how salinity changes over time and from one part of the ocean to another. other instruments onboard the satellite will simultaneously collect other data, such as measurements of ocean surface winds, over the entire surface of the earth. "Measuring surface winds are important measurements," said Gary lagerloef, aquarius principal investigator at earth & Space research in Seattle Wash. "We use that data to correct for surface roughness on salinity measurements." aquarius will use a set of highly precise microwave radiometers to detect microwave emissions from the ocean surface. these emissions are modulated, or changed, based on the electrical conductivity of the water itself, which is influenced by the salinity. By tracking variations in ocean surface salinity, aquarius will monitor changes in the water cycle caused by evaporation and precipitation over the ocean, river runoff, and the freezing and melting of sea ice. "Salinity is the glue that bonds two major components of earth's complex climate system: ocean circulation and the global water cycle," lagerloef said. "aquarius will map global variations in salinity in unprecedented detail, leading to new discoveries that will improve our ability to predict future climate." the observatory will carry seven other instruments that will collect environmental data for a wide range of applications, including studies of air quality and land processes.

said. De-commissioning work on endeavour and then atlantis will be finished shortly thereafter, in staggered shifts. atlantis is bound for display at the Kennedy Space Center's Visitors Complex. the long lag time may be appreciated by the various museums. they learned only on april 12 that they were chosen, out of a field of 21 contenders, to display a shuttle. "this longer process allows everybody to prepare to get the shuttles," Beutel said. new york City's Intrepid Sea, air & Space Museum will get enterprise, a prototype shuttle that made some glide tests but never reached space. When endeavour is all scrubbed up and ready for display, it will hitch a ride to los angeles aboard a modified Boeing 747 carrier aircraft. this transport aircraft will have to refuel several times during the journey from Florida, Beutel said. naSa is considering turning the refueling stops into meet-andgreet sessions with the public, making endeavour's last journey something of a farewell tour. But that's just an idea at the moment, not a definitive plan. "that's all very preliminary," Beutel said. "a lot of logistics would have to be worked out." a farewell tour would give more people a chance to know and appreciate endeavour, which made 25 successful missions to earth orbit and back. "I just love this vehicle," StS-134 pilot Greg Johnson told reporters recently. "this vehicle is a wonderful machine, and it's an honor and a privilege for each one of us to be part of her final flight."

It might not seem like scraping the top of a cold stick of butter with a knife could be a scientific test, but engineers at Massachusetts Institute of technology say the process is very similar to the scratch test, which is perhaps the oldest known way to assess a materials hardness and strength or, in scientific language, its resistance to deformation. Using the scraping of butter as a starting point, the engineers launched a study to see if the age-old scratch test could be used to determine a materials toughness, or how well it resists fracturing after a small crack has already formed. the answer: the scratch test is indeed measuring crack resistance rather than strength and is valid on material samples of any size. this means that engineers now have a simple new test for assessing a materials fracture properties. Fracture mechanics has not reached the same level of pervasiveness in most engineering practice as strength theories, and this is due to the fact that it is difficult to determine fracture properties of materials, from soft clay to hard concrete, says Franz-Josef Ulm, the George Macomber Professor of Civil and environmental engineering (Cee) at MIt. the test which we propose here is just this: a straightforward test for the engineering practice. In a paper in Physical review letters that appeared late May this year, co-authors Ulm; Pedro reis, the esther and harold e. edgerton assistant Professor of Civil and environmental engineering and Mechanical engineering; and Cee graduate student ange-therese akono who is first author on the paper describe their research and findings. they performed laboratory scratch tests on paraffin wax, which is similar to butter but more stable at room temperature, reis says, and used theory and mathematics to pare the process down to its essential components. they then created a mathematical model of the entire physical scratch process, which shows that the area of contact between the scratching implement and the test material is of primary importance in determining whether the scratch test is assessing strength or toughness. they knew that when measuring a materials strength, the force required to make a scratch would always increase at the same rate as the contact area (width times depth) of the scratching tool. But when measuring a materials toughness, the mechanics are complicated by the energy released when chemical bonds break as the new surfaces are created and a fracture grows. Because of this, the force does not increase at the same rate as the area of contact. Instead, the force exhibits a distinct scaling reminiscent of a fracture process that is, a wider cut requires more force than a deeper one. (Specifically, the force increases at the same rate as the width times the square root of the depth.) Back in the lab, the engineers changed the dimensions of the test to see if a wider scratching implement would require more force than a narrow one. It did. and that seemingly minor change in one dimension gave them their answer: the scratch test is assessing a materials fracture toughness, not its hardness nor strength properties. It assesses the hardness and strength only in cases where the area of contact between the scratching implement and the material is so small that a true indentation is made rather than a scratch.now, knowing the width and depth of the scratch and the horizontal force, researchers can now determine the fracture toughness of a material. the advantage of a scratch test is that it works on both soft and hard materials and on very small samples, akono says. this method enables us to isolate brittle-crack propagation and neglect plastic deformation. they confirmed their findings with additional tests on cement paste, limestone and steel.

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June 5-12 2011

SMarter product designs, support for developing country waste management schemes, and encouraging developed country households not to 'squirrel away' old electronic goods in drawers and closets could help boost recycling of metals world-wide. according to a report by the United nations environment Programme (UneP) Division of technology Industry and electronics, recycling rates of metals are in many cases far lower than their potential for re-use. less than one-third of some 60 metals studied have an end-of-life recycling rate above 50 per cent and 34 elements are below one per cent recycling, yet many of them are crucial to clean technologies such as batteries for hybrid cars to the magnets in wind turbines, says the study. "In spite of significant efforts in a number of countries and regions, many metal recycling rates are discouragingly low, and a 'recycling society' appears no more than a distant hope," states the recycling rates of Metals: a Status report, compiled by UneP's International resource Panel. the weak performance is especially frustrating because, unlike some other resources, metals are "inherently recyclable," says the study, released at the london Metal exchange in the United Kingdom, and in Brussels at 'Green Week' by achim Steiner, Un Under-Secretary General and UneP's executive Director. "In theory, metals can be used over and over again, minimizing the need to mine and process virgin materials and thus saving substantial amounts of energy and water while minimizing environmental degradation. raising levels of recycling world-wide can therefore contribute to a transition to

Recycling technology needs more attention

a low carbon, resource efficient Green economy while assisting to generate 'green jobs'," said Mr. Steiner. Indeed, by some estimates recycling metals is between two and 10 times more energy efficient than smelting the metals from virgin ores. Meanwhile extraction alone currently accounts for seven per cent of the world's energy consumption, with emissions contributing significantly to climate change. a separate report by the Panel, also released today in Brussels, looks at 'decoupling' economic growth rates from rates of resource use and notes that extraction of ores and minerals grew 27 fold during the 20th century-a rate higher than world economic growth. It cites evidence that the era of cheap and easily accessible ores is running out. For example, about three times more material needs to be moved for the same ore extraction than a century ago, with corresponding increases in land disruption, water impacts and energy use. Says John atherton, Director, International Council on Mining and Metals (ICMM) speaking today at the launch of the recycling rates of Metals report: "We hope this report encourages policy makers and product designers to adopt life cycle thinking when planning for materials recycling." the landmark report is the first attempt to gather accurate and consistent information about the extent to which metals are collected, processed and reused in new products, says thomas Graedel, a professor of industrial ecology at yale University and one of the report's eight authors. "Previously published recycling rates were defined in different ways," he says. "the data were highly variable and we couldn't be sure how to draw comparisons between published numbers. the work will help assess recycling rates in future and ways to improve our success moving forward." the report says lead is the most recycled metal: nearly 80 per cent of products that contain lead - mainly batteries - are recycled when they reach the end of their useful life. More than half of the iron and other main components of steel and stainless steel, as well as platinum, gold, silver and most other precious metals, are recycled. But even here there are wide variations with, for example, 70 to 90 per cent of gold in industrial applications recycled versus only 10 to 15 per cent of gold in electronic goods. Meanwhile, globally there is virtually no recycling of the rest, including metals like Indium used in semiconductors, energy efficient light emitting diodes (leDs), advanced medical imaging and photovoltaics. the story is similar with other specialty metals like tellurium and selenium, used for high efficiency solar cells, and for neodymium and dysprosium used for wind turbine magnets, lanthanum for hybrid vehicle batteries, and gallium used for leDs. "By failing to recycle metals and simply disposing of these kinds of metal, economies are foregoing important environmental benefits and increasing the possibility of shortages," says Dr Graedel. "If we do not have these materials readily available at reasonable prices, a lot of modern technology simply cannot happen." It is not yet possible to estimate how close industry is to a shortage of these specialty or rare earth metals, mainly because so little is known about the potential of mining to continue as their main source. "We don't think immediate shortages are likely," says Dr Graedel, "but we are absolutely unable to make predictions based on the very limited geological exploration currently conducted." "In principle, the amount of recycling of metal offsets the same amount of metals that need to be mined," says Guido Sonnemann of UneP, an innovation and product life cycle management expert. "Because demand for metals overall is increasing, recycling can't offset all mining but can contribute to a more sustainable mining industry." there report makes several recommendations on how recycling could be boosted world-wide: * encouraging product design that makes disassembly and material

separation easier * Improving waste management and recycling infrastructure for complex end-of-life products in developing countries and emerging economies * In industrialized countries, addressing the fact that many metalcontaining products are 'hibernating' in places likes drawers and closets and others, such as mobile phones, are all too often ending up in dustbins. Says nick nuttall, UneP Spokesperson: "I am as guilty as anyone here. like a squirrel or a magpie, my home and office drawers and cupboards are packed with old mobile phone chargers, USB cables, defunct laptops and the like. I somehow imagine that they might come in useful one day-but of course they never do as they have been superceded by the latest model."

recycling rates reported for the 60 elements studied: More than 50 percent recycling: 18 elements * lead (main use: batteries) * Gold (main uses: jewelry, electronics) * Silver (main uses: electronics, industrial applications (catalysts, batteries, glass/mirrors), jewelry); * aluminium (main uses: in construction and transportation) * tin (main uses: cans and solders) * Copper (main uses: conducting electricity and heat) * Chromium (main use: stainless steels) * nickel (main uses: stainless steels and super-alloys) * niobium (main uses: high strength / low alloy steels and superalloys) * Manganese (main use: steel) * Zinc (main uses: coating steel - galvanizing) * Iron (the basis and chief constituent of all ferrous metals) * Cobalt (main uses: super-alloys, catalysts, batteries) * rhenium (a super-alloy component; main uses: gas turbines (perhaps 60% of use), and catalysts) * titanium (main uses: paint, transportation) * Palladium, Platinum, rhodium (main use of all three: auto catalysts) 25 to 50 per cent recycling: 3 elements * Magnesium (main uses: construction and transportation) *Molybdenum (main uses: high-performance stainless steels) *Iridium (main uses: electro-chemistry, crucibles for mono-crystal growing, spark plugs) 10 to 25 per cent recycling: 3 elements * tungsten (main use: carbide cutting tools) * ruthenium (main uses: electronics (hard disk drives), process catalysts / electrochemistry) * Cadmium (main uses: batteries (85%), pigments (10%)) 1 to 10 per cent recycling: 2 elements * Mercury (largely being phased out; main remaining uses: chlorine / caustic soda production) * antimony (main uses: flame retardant (65% of use), lead acid batteries (23%)) less than 1 per cent recycling: 34 elements * Beryllium (main use: electronics) * Gallium (main use: electronics: ICs, leDs, diodes, solar cells * Indium (main use: as a coating in flat-panel displays) * Selenium (main uses: manufacturing glass, manganese production, leDs, photovoltaics, infrared optics) * Strontium (main uses: pyrotechnics, ferrite ceramic magnets for electronics) * tantalum (main uses: in capacitors in electronics) * Germanium (main uses: in night vision (infrared) lenses (30%), Pet catalysts (30%), solar cell concentrators, fiber optics) * erbium (main use: fiber-optics) * tellurium (main uses: steel additives, solar cells, thermo-electronics) * hafnium (main uses: in nuclear reactors, and to a small degree in electronics) * Zirconium (main use: in nuclear reactors) * thallium (occasional use in medical equipment) * Vanadium (main use: high strength-low alloy steels) * arsenic (arsenic metal is used in semiconductors (electronics, photovoltaics) and as an alloying element; arsenic oxide is used in wood preservatives and glass manufacture) * Barium (main uses: drilling fluid (perhaps 80% of use); as a filler in plastic, paint and rubber (about 20%) * Bismuth (principal uses: metallurgical additive and alloy constituent) * lithium (main use: in batteries) * lanthanum (main use: in batteries) * Scandium (main uses: in aluminium alloys) * yttrium (main use: as a phosphor) * europium (main use: as a phosphor) * ytterbium (main use: as a phosphor) *lutetium (main use: a scintillator in computerized tomography) * Cerium (main use: as a catalyst) * osmium (occasionally used as a catalyst, but has little industrial importance) * thulium (no significant uses) * Praseodymium (main use: glass manufacturing and magnets) * Gadolinium (main use: in ceramics and magnets) * Boron (main uses: in glass, ceramics, magnets) * neodymium, Samarium, terbium, Dysprosium, holmium (main use for all five: in magnets)

First fuel cell to power residential building in New York

the octagon, a leadership in energy and environmental Design (leeD) Silver 500-unit apartment community on roosevelt Island, made green history by becoming the first residential building in the State of new york to be powered and heated by a 400 kilowatt (kW) fuel cell from UtC Power. this installation marks a paradigm shift in the State's use of clean energy technologies, made possible through new york's progressive stance on energy policy. the project was supported by $1.2 million in financial incentives from the new york State energy research and Development authority (nySerDa). the fuel cell arrived on roosevelt Island this winter and is now operating at full capacity. "roosevelt Island is a place where progressive green initiatives are at the forefront of our smart growth plans. We are proud of our island partners, including Becker + Becker, who are contributing to a greener Island and a cleaner City," said leslie torres, President and Ceo of the roosevelt Island operating Corporation, the new york State Public Benefit Corporation responsible for the development and operation of roosevelt Island. the fuel cell, a PureCell System Model 400, is a combined heat and power (ChP) system that represents a game-changing technology. It converts natural gas to electricity and heat through a combustion-free, electrochemical process to provide power and heat to meet the majority of the apartment building's energy demand. the energy efficiency achieved by the fuel cell is significantly higher than the energy received from the grid and emissions are negligible. additionally, the fuel cell's process heat is captured to satisfy the building's space heating and domestic water requirements. "We are so proud that the Multi-employer Property trust (MePt) and Becker + Becker have selected UtC Power's PureCell System to provide reliable onsite power to this innovative and historic project," said neal Montany, Director of UtC Power's stationary fuel cell business. "It is truly rewarding to know that the benefits of our efficient and clean fuel cell technology will touch the daily lives of the residents of the octagon." "on-site fuel cell technology represents the future of electricity generation in this country," said Bruce Becker, President, Becker + Becker, the building's developer and architect. "traditionally, large capacity fuel cells are utilized at schools, hospitals, and other energy-intensive facilities, but multifamily residential buildings represent a perfect - heretofore uncultivated - opportunity for fuel cell technology because of their ability to continually utilize the fuel cell's process heat in the form of hot water and space heating demand." the application of the fuel cell at the octagon is estimated to reduce the carbon emissions of the site by 790 metric tons annually. nySerDa's award winning ChP Demonstration Program helps showcase pioneering fuel cell projects, such as the octagon. to encourage others to adopt fuel cell technology, nySerDa's $21.6 million Customer-Sited tier Fuel Cell Program provides an incentive toward the cost of fuel cell installations, plus payments over the first three years of operation based on power produced. Funding is awarded to applications received on a first-come, first-serve basis. "Fuel cells present a promising technology that nySerDa strongly supports," said Francis J. Murray Jr., President and Ceo of nySerDa. "I commend the octagon for the innovative energy and environmental investments throughout its facility for which all residents can be proud, and look forward to partnering on future clean energy projects." In addition to the octagon, a variety of facilities around the state are installing or operating fuel cells funded partially by nySerDa, including a Price Chopper store (Colonie), a CocaCola refreshments bottling facility (elmsford), and the east rochester Central School District.