Philippine leader says drugs war ‘trivialized’ by human rights concerns

Philippine President Rodrigo Duterte speaks to protesters after he delivered his State of the Nation address at the Congress in Quezon city, Metro Manila Philippines July 24, 2017.

By Karen Lema and Martin Petty

MANILA (Reuters) – Philippine President Rodrigo Duterte on Monday promised an unrelenting war on drugs, defying critics who were “trivializing” his campaign with human rights concerns and unjustly blaming the authorities for the bloodshed.

Duterte wasted little time in his annual state of the nation address to defend a crackdown that has killed thousands of Filipinos. He said that though he valued human life, he needed to tackle “beasts and vultures” that were preying on helpless people and stopping foreign investment from pouring in.

“The fight will be unremitting as it will be unrelenting despite international and local pressure, the fight will not stop,” he said.

“I do not intend to loosen the leash in the campaign or lose the fight against illegal drugs, neither do I intend to preside over the destruction of the Filipino youth by being timid and tentative in my decisions in office.”

The crackdown on drugs is the signature campaign that has defined Duterte’s presidency and caused an international outcry, with rights groups condemning his administration for a campaign that has overwhelmingly targeted drug users from poor communities, and left narcotics kingpins untouched.

Critics say Duterte has turned a blind eye to thousands of deaths during police operations that bear all the hallmarks of executions. Police say they have shot dead suspects only in self defense and deny involvement in a spree of killings of drug users by mysterious vigilantes.

Duterte said critics were wrongly blaming police for most of the deaths and “trivializing” his campaign by talking about the need for due process and to protect human rights.

He said his detractors at home and abroad should help him instead.

“Your efforts will be better spent if you use the influence, moral authority, moral ascendancy of your organizations over your respective sectors to educate the people on the evil of illegal drugs, instead of condemning the authorities, unjustly blaming for every killing that bloodies this country,” he said.

Duterte’s annual address lasted nearly two hours, during which he frequently deviated from a prepared speech that was eventually reduced to brief talking points.

Some 7,000 protesters from numerous groups gathered outside the venue to demonstrate against Duterte. After his speech, he listened to their complaints for several minutes.

 

DEATH BY TAXES

He lashed out strongly at mining companies he said were destroying the environment and threatened to tax them heavily, or close the sector completely.

He said he would consider stopping exports of raw materials until they could be processed domestically, adding it was a “non-negotiable” policy that mining firms would repair damage they had caused, or “I will tax you to death”.

Duterte called on the Senate to pass a tax reform bill to help finance a multi-billion infrastructure program key to his economic agenda.

The lower house passed a leaner version of the proposed measure, the first of five tax reform packages Duterte is pushing to boost state coffers and make the tax system fairer and more simple.

Expected revenues from the original draft, which seeks to cut the personal income tax rate, raise excise taxes on fuel and automobiles, amounted to 162 billion pesos ($3.2 billion).

Duterte also said he would press the legislature to pass a law to grant autonomy to a predominantly Muslim region in Mindanao, a move experts say could help arrest the spread of extremist ideology.

He also said he was prepared to “wait it out” before retaking Mindanao’s Marawi City from Islamic State-inspired rebels, because he was concerned hostages might be killed. He acknowledged there had been intelligence failures and mistakes in assessing the initial threat.

Duterte told reporters he would add 35,000-40,000 new troops over the next two years and buy planes and high-altitude drones to “build an armed forces that can fight all fronts, everywhere”.

Senator Risa Hontiveros, a critic of Duterte, described the president’s much-anticipated address as “a bad open mic performance”.

 

(Additional reporting by Neil Jerome Morales, Enrico dela Cruz and Manuel Mogato; Editing by Nick Macfie)

 

Trump to order U.S. Treasury to delve into taxes, post-crisis reforms

U.S. President Donald Trump holds a joint news conference in Washington, U.S., April 20, 2017. REUTERS/Aaron P. Bernstein

By Lisa Lambert

WASHINGTON (Reuters) – U.S. President Donald Trump will order the Treasury on Friday to find and reduce tax burdens and review post-financial crisis reforms that banks and insurance companies have said hinder their ability to do business.

A White House official said on Thursday that Trump will issue an executive order directing the Treasury on the tax issues. He will also issue two memoranda asking for reviews of two parts of the 2010 Dodd-Frank Wall Street reform law – the Orderly Liquidation Authority that sets out how big banks can wind down during a crisis and the Financial Stability Oversight Council (FSOC), which is made up of the country’s top regulators.

The orders, which Trump will sign at the Treasury Department, next door to the White House, comes as the president works toward making good on a major campaign promise to lower taxes.

Treasury Secretary Steven Mnuchin will review significant tax regulations issued in 2016 to determine if any impose an undue financial burden on American taxpayers, add undue complexity or exceed statutory authority, the official’s statement said.

Mnuchin said earlier on Thursday that Treasury is working on tax reform “day and night” and will soon create a sweeping overhaul.

Congress recently failed in efforts to make good another Trump campaign promise to reform healthcare.

House of Representatives Speaker Paul Ryan said this week that the country’s first tax overhaul in decades may not be done until well into 2017. The review that Trump is ordering gives the administration a way to approach the issue independent of Congress.

The liquidation authority and the FSOC were both created as part of the Dodd-Frank law intended to prevent a repeat of the 2007-09 financial crisis, when the U.S. government injected billions of dollars in aid into failing banks to keep them from destroying the country’s economy.

In February Trump ordered a review of the law, saying he wanted to cut out much of it, and Mnuchin has said he would like to look into how the council, which he chairs, works.

House Republicans are also working to loosen Dodd-Frank regulations. Banks say the regulations have hurt their liquidity and created burdensome processes.

Trump will order an assessment of how the FSOC designates a financial institution as “systemically important,” which triggers requirements to hold more capital in case it comes into crisis.

Republican lawmakers say the FSOC uses a flawed process lacking transparency to designate non-bank institutions. Only two insurers, American International Group Inc and Prudential Financial Inc, currently carry the label, and a judge last year struck down the council’s designation of MetLife Inc.

Mnuchin will have 180 days to report to Trump on the liquidation authority, a tool for federal banking regulators to use if they need to step in during a financial emergency and help a failing bank unwind. The report will offer views on using bankruptcy as an alternative, the impact of failing companies on financial stability, and whether the authority could drive up taxpayer costs or encourage excessive risk-taking.

(Writing by Eric Beech and Lisa Lambert; Editing by Cynthia Osterman and Leslie Adler)

Wall Street set to open lower as earnings gather pace

A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S. December 28, 2016. REUTERS/Andrew Kelly

By Yashaswini Swamynathan

(Reuters) – U.S. stocks were on track to open slightly lower on Tuesday as investors weighed quarterly earnings and a possible delay in tax reforms, while keeping an eye on global politics.

U.S. Treasury Secretary Steven Mnuchin told the Financial Times on Monday that the Trump administration’s timetable for tax reform was probably delayed following setbacks in negotiations with Congress over healthcare.

Mnuchin’s statement added to concerns about President Donald Trump’s ability to deliver on his promises to cut taxes and simplify regulations – bets on which U.S. stocks have hit record highs since his election.

A raft of quarterly earnings from corporate heavyweights is expected to keep investors busy. Goldman Sachs <GS.N> shares sank 3.4 percent in premarket trading after the bank reported a lower-than-expected quarterly profit due to weak trading revenue.

Bank of America <BAC.N> inched up 1.2 percent after the company reported a strong jump in quarterly profit.

Shares of Morgan Stanley <MS.N>, Wells Fargo <WFC.N> and JPMorgan <JPM.N> were trading lower.

“The key for the market is still earnings, economic growth etc, and politics is merely a daily side show,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, Illinois.

Dow e-minis <1YMc1> were down 63 points, or 0.31 percent at 8:32 a.m. ET, with 37,433 contracts changing hands.

S&P 500 e-minis <ESc1> were down 6.75 points, or 0.29 percent, with 189,256 contracts traded.

Nasdaq 100 e-minis <NQc1> were down 12 points, or 0.22 percent, on volume of 33,948 contracts.

Safe-havens continued to be in favor ahead of crucial presidential elections in France and rising tensions between the United States and North Korea.

Adding to uncertainties, British Prime Minister Theresa May called for an early election on June 8 to guarantee political stability as the country negotiates its way out of the European Union.

Gold prices hovered close to five-month highs, while the dollar dipped.

Wall Street had closed higher in very thin trading volumes on Monday as investors bought technology and bank stocks.

Shares of Dow component UnitedHealth <UNH.N> rose 1.7 percent to $170.01 after the health insurer reported better-than-expected quarterly results and raised its profit and revenue forecast for the year.

Johnson & Johnson <JNJ.N> was down 1.3 percent at $124.10 after the healthcare conglomerate reported quarterly revenue that missed analysts’ expectations.

Netflix <NFLX.O>, the first of the FANG stocks to report, was up 1.4 percent at $149.24 after the video streaming service

provider reported weaker-than-expected subscriber numbers in the first quarter, but forecast strong growth in the current quarter.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)