WATCH: For 2 straight days, China fires water cannon at Philippines vessels

China Coast Guard ships again used water cannon against Philippine government vessels near Bajo de Masinloc on Friday, July 24, the Philippine Coast Guard said, extending a week of tense encounters in the West Philippine Sea.

The PCG said the incident happened while it was conducting maritime operaitons with the Bureau of Fisheries and Aquatic Resources with the aim of providing fuel subsidies and other support to Filipino fishermen in the area.

A China Coast Guard vessel fired water cannon at BRP Cape San Agustin and BRP Datu Paduhinog during the mission, the PCG said.

The incident came a day after the PCG also reported water cannon use and dangerous maneuvers by the China Coast Guard against Philippine vessels in the same area.

Bajo de Masinloc, also known as Scarborough Shoal, is a traditional fishing ground off Zambales and one of the most contested features in the West Philippine Sea.

Recent Ayungin clash. The latest incident followed a separate confrontation earlier this week near Ayungin Shoal, where the Philippine military said a Filipino sailor was injured after being struck on the head with a wooden baton by a China Coast Guard member.

Ayungin Shoal, also known as Second Thomas Shoal, is where BRP Sierra Madre serves as the Philippines’ outpost.

China has denied wrongdoing and accused Philippine personnel of provoking the encounter.

The Philippines has condemned China’s actions as aggressive and unlawful, while Beijing has maintained that it was responding to Philippine vessels it said were operating illegally.

China alleges jurisdiction over almost the entire South China Sea, including parts of the West Philippine Sea, despite a 2016 arbitral ruling that rejected its sweeping claims.

14 areas under Signal No. 1 due to ‘Kiyapo’

Fourteen areas in Northern Luzon are now under Signal No. 1 as Tropical Depression Kiyapo continues to move northwestward over the Philippine Sea, PAGASA said Thursday.

In a press briefing on Thursday, July 23, PAGASA weather specialist John Manalo said the tropical depression was estimated to be 640 kilometers east of Tuguegarao City, Cagayan, as of 4 p.m.

Kiyapo is moving northwestward at 30 kilometers per hour (kph), with maximum sustained winds of 45 kph and gusts of up to 55 kph.

PAGASA has hoisted Tropical Cyclone Wind Signal No. 1 over the following areas in Northern Luzon:

Batanes

Cagayan (including the Babuyan Islands)

Ilocos Norte

Apayao

Ilocos Sur

Abra

Kalinga

Isabela

Mountain Province

Ifugao

The northern portion of Nueva Vizcaya

The northern portion of Benguet

The northern portion of Quirino

The northern portion of Aurora

The state weather bureau expects Kiyapo to maintain its tropical depression strength as it nears the Babuyan Islands.

However, it is forecast to intensify into a tropical storm by Thursday afternoon.

Because of its slightly accelerated pace, the cyclone is projected to exit the Philippine Area of Responsibility (PAR) early Saturday morning.

Once outside the PAR, over the sea between the Philippines and the southeastern coast of China, the storm is forecast to further intensify into a severe tropical storm before making landfall in southeastern China.

Jrgen Klopp named new Germany coach with eyes on 2030 World Cup

Germany has hired Jrgen Klopp to coach its national team, giving the ex-Liverpool manager a daunting task to turn around the fortunes of a squad which failed yet again at the World Cup.

Klopp signed a contract to coach Germany through to the 2030 World Cup. Speaking shortly after the announcement Friday, he told a news conference in Frankfurt it was ‘a big honor’ to take the job and signaled it could be his final role as coach.

‘Jrgen Klopp has no career after the national team,’ he said. ‘Ideally, this will be the highlight of my career, my life, my working life. I will put everything into it that I possibly can.’

He replaces Julian Nagelsmann, who resigned amid heavy criticism after Germany’s loss to Paraguay meant it failed to reach the last 16 of a men’s World Cup for the third time in a row.

Klopp wants to make German football cool again

It is Klopp’s first coaching job since he left Liverpool in 2024 citing fatigue. He said he was ‘recharged’ in comments while in talks over the Germany job.

Klopp signaled he plans to make some surprising squad selections and said his mission isn’t just to win games, but to bring back a buzz around the team.

Klopp himself admitted that ‘it’s been a while’ since he watched national team games outside of major tournaments.

‘I want to create something with the national team that means that people go home after the game and think ‘That was really cool.’ That’s what I’d like to see happen,’ he said.

Klopp said Friday he would be prepared to leave without any severance pay if it doesn’t work out, and threatened to resign if the media doesn’t ‘leave my family in peace.’

The man known for thrilling ‘heavy metal football’ at Liverpool, Klopp was Germany’s preferred candidate as soon as Nagelsmann quit.

Over weeks of talks, the 59-year-old German – 20 years older than Nagelsmann – stayed in the United States as a World Cup pundit for a German-language broadcaster.

The federation also held talks with the Red Bull group, where Klopp spent the last year and a half as ‘head of global soccer’ advising its worldwide group of soccer clubs.

German federation president Bernd Neuendorf said there wouldn’t be a typical release fee paid to Red Bull for Klopp. Instead, the federation pays one million euros ($1.14 million) to a Red Bull-linked charity and has agreed to hold three national team games in the eastern city of Leipzig, where Red Bull backs the city’s Bundesliga club team.

Klopp faces a tough introduction to his first national team job with four Nations League games in 11 days against the Netherlands, Greece and Serbia in late September and early October. The first major milestone will be the 2028 European Championship.

Mertesacker joins Klopp in Germany setup

Germany hasn’t won a knockout game at a World Cup since beating Argentina in the 2014 final. Now a player from that team will be working alongside Klopp.

Former defender Per Mertesacker joins Klopp as the federation’s new managing director for sport, with a role overseeing the German men’s national teams and an emphasis on bringing players through youth national teams to star for the senior team. He will start the role in January and joins after eight years running Arsenal’s academy.

Klopp is reunited with two of his assistants from his Liverpool days, Peter Krawietz and Pep Lijnders, weeks after Lijnders left a role as Pep Guardiola’s assistant at Man City. Ex-Germany player Sven Bender also takes an assistant role.

In an unusual arrangement, Klopp’s longtime agent Marc Kosicke joins the coaching team in a role focusing on strategy and administration, but won’t be a federation employee.

Letran repels Enderun to complete Shakey’s volleyball semis cast

Reigning NCAA champion Letran turned it on late to thwart the gritty Enderun Colleges, 21-25, 25-21, 25-14, 14-25, 15-4, and complete the Final Four cast in the 2026 Shakey’s Collegiate National Invitationals Thursday at the Ninoy Aquino Stadium in Manila.

Judiel Nitura and Reeza Abayon joined forces down the stretch, igniting a 5-0 start en route to a dominant finish as the Lady Knights capped their campaign at 2-3 to catch the last semis bus.

Letran will take on the top-ranked UST, while NCAA runner-up St. Benilde and Australia’s Southern Storm Melbourne clash in the other semis pairing Friday.

‘Ang sinasabi ko lang sa kanila na kung ano ang itinuturo ni coach ‘yun ang dapat gawin at sundin namin. Nag-adjust kami paunti-unti kaya nakuha namin ang panalo,’ said playmaker Hizki Flores, who stabilized Letran’s offense in the decider to finish with 16 sets.

Abayon paced the Lady Knights with 17 points on 15 hits while Nitura added 14 markers, including three in Letran’s 10-3 runaway in the fifth set.

Althea Botor (14) led the way while Jasmine Salvani and Ederlyn Alba had eight and seven points, respectively, for the Lady Titans, who wrapped up their run at 1-4.

erun and Ho Chi Minh City Volleyball Club of Vietnam will battle in the classification match also Friday before the Final Four.

PAL on jet-buying spree, orders more A350-1000s

Flag carrier Philippine Airlines (PAL) is placing aircraft orders one after the other, setting out to buy another nine of its flagship A350-1000 from aerospace giant Airbus.

PAL yesterday signed a memorandum of understanding with Airbus for the procurement of nine A350-1000s, with purchase rights for five more, in yet another boost to its long-range fleet.

The order was placed a day after PAL submitted its initial commitment to buy 15 Boeing 787-10 Dreamliner, with purchase rights also for five more, to expand its widebody fleet.

The new Airbus order will also double PAL’s A350-1000 fleet to 18 once completed. PAL signed an order for nine A350-1000s in 2023, and two have arrived since, with the other seven expected before 2028.

PAL deploys the A350-1000 to some of its longest destinations in North America such as New York and Toronto. It plans to do the same for the second batch of A350-1000s, which are set for delivery from 2034 to 2036.

PAL configures the A350-1000 in three classes: business class, premium economy and economy cabin, totaling 382 seats.

The layout includes 42 suites in business class with privacy doors and fully flat beds, 24 seats in a separate premium economy cabin, and 316 seats in economy class, and PAL equipped all of the cabins with in-flight entertainment and internet access.

The A350-1000 is considered as one of the most cost-efficient long-range aircraft at present, as it is able to fly up to 16,700 kilometers with 25 percent less fuel burn.

PAL Holdings Inc. president and chief operating officer Lucio Tan III said the airline takes pride in being the first Southeast Asian carrier with an A350-1000. He trusts the aircraft would define PAL’s competency for international flights.

‘As the first and currently the only airline in Southeast Asia to operate the A350-1000, PAL has experienced firsthand the aircraft’s exceptional range, fuel efficiency, reliability and its passenger comfort. It has expanded our reach across North America, while delivering the world-class travel experience our customers deserve,’ Tan said.

To ensure its A350-1000 longevity, PAL also signed a memorandum of understanding to buy 18 Trent XWB-97 engines from Rolls-Royce to power up the aircraft.

The airline owned by taipan Lucio Tan also struck a deal with Rolls-Royce for its TotalCare program that covers the health and maintenance of the fleet.

Fruitas sees sustained growth as portfolio diversifies

Fruitas Holdings Inc., led by businessman Lester Yu, expects to sustain long-term growth, driven by the continued expansion of its store network and its diversified portfolio.

‘We have demonstrated resilience in the face of challenges, embraced opportunities for growth and built a stronger Fruitas,’ Yu, Fruitas president and CEO, said.

Fruitas currently operates more than 830 stores across the Philippines under more than 30 active brands, making it one of the country’s largest operators of food and beverage kiosks and community stores.

The company has earmarked P120 million in capital expenditures to support its 2026 expansion initiatives, including opening 80 to 100 stores to further beef up its nationwide presence.

While the operating environment remains dynamic, Yu said the company’s diversified portfolio, culture of innovation, expanding store network and disciplined financial management continue to position Fruitas for sustainable long-term growth.

‘We will remain focused on delivering quality products, strengthening our brands, expanding responsibly and creating greater value to serve millions of Filipinos every year,’ he said.

In 2025, Fruitas delivered a net income of P129 million, generating gross revenues of P3.04 billion, driven by the continued strength of its diversified portfolio of brands.

In the first quarter, gross revenues jumped by 16.78 percent to P793.4 million, as net income stood at P28.9 million.

Yu said the company’s encouraging first quarter results demonstrate its ability to generate profitable growth while continuing to invest in the future of its brands.

‘As we continue to strengthen our market leadership, we remain committed to reinvesting in our brands and deepening our connection with consumers,’ he said.

Yu said innovation also continues to be the cornerstone of the Fruitas growth strategy by introducing a wide range of new products across its portfolio.

The company has launched new concepts such as CocoLab, which offers innovative, uniquely crafted coconut beverages and desserts, and Madvocados, which offers premium, indulgent avocado-inspired dessert creations.

‘These initiatives demonstrate our commitment to staying ahead of changing consumer preferences while continuously refreshing our product portfolio,’ Yu said, noting that the positive reception of its new products and concepts supported the continued expansion of its nationwide store network.

A leader in food and beverage stores across multiple formats, Fruitas ventured into the roasted chicken segment in 2024 by acquiring a majority stake in the owner of the Mang Bok’s brand for P8.86 million.

Its subsidiary, Balai ni Fruitas Inc., acquired the 40-year-old legacy brand Sugarhouse in the same year, allowing the listed bakery operator to expand its product offerings, particularly in the cake category, and tap a broader customer base.

In 2023, Fruitas completed the purchase of 73-year-old legacy brand Ling Nam, marking its entry into the Asian casual dining space.

CV construction value falls 12.8% despite more permits

Construction activity in Central Visayas weakened in the first quarter 2026 despite an increase in building permits, as higher material and fuel costs, rising logistics expenses and global economic uncertainty dampened project values.

Data from the Philippine Statistics Authority (PSA) showed approved building permits in the region rose 7.4 percent in the January-to-March period.

However, the total value of approved construction projects fell 12.8 percent to P6.47 billion from P7.42 billion a year earlier, indicating developers remained cautious amid rising costs.

Cebu Province remained the region’s largest construction market, accounting for P2.83 billion in approved projects. Bohol followed with P1.53 billion, although its construction value declined 22.8 percent from a year earlier.

Among the highly urbanized cities, Cebu City posted the largest construction value at P902.6 million, despite a 50.8 percent decline. Lapu-Lapu City saw construction value fall 57.7 percent to P376.8 million.

In contrast, Mandaue City emerged as the region’s fastest-growing construction market. Total construction value surged 439.3 percent, while approved floor area expanded 442.4 percent, driven by strong residential, commercial and industrial developments.

Mandaue City’s residential sector recorded a 314.6 percent increase in construction value, the highest in Central Visayas, reflecting robust demand for housing and condominium projects.

Commercial construction grew even faster. Non-residential construction value climbed 494.3 percent to P454 million, bucking the regional trend as investments continued to flow into commercial and industrial facilities.

Across Central Visayas, approved non-residential construction value fell 21.2 percent to P3.01 billion, signaling weaker investment in business establishments.

Cebu Province accounted for the largest share at P1.53 billion, while Cebu City and Lapu-Lapu City posted declines of 73.2 percent and 67.9 percent, respectively. Bohol’s non-residential construction value also dropped 47.1 percent.

Residential construction also slowed across the region. The number of approved residential permits declined 4.5 percent, while construction value fell 9.3 percent.

Cebu Province remained the largest residential market with P1.16 billion in approved construction value despite a 21.9 percent decline. Bohol, however, posted a 7.3 percent increase to P976.3 million, while residential floor area expanded 48.5 percent, suggesting a shift toward larger and higher-value housing projects.

Cebu City and Lapu-Lapu City recorded declines in residential construction value of 33.6 percent and 29 percent, respectively.

Other construction categories provided some support. The value of approved building additions jumped 462 percent to P65 million, led by Cebu Province. ‘Other construction’ projects, which include demolition and landscaping works, rose 256 percent to P163.3 million, with Mandaue accounting for the largest share.

Meanwhile, alteration and repair works remained concentrated in Cebu Province and Cebu City, partly driven by reconstruction efforts following the Northern Cebu earthquake and Typhoon Tino.

The PSA said construction activity could weaken further in the coming quarters as higher steel, cement and fuel prices continue to raise development costs.

It also warned that geopolitical tensions, extreme heat linked to El Niño and the possibility of higher interest rates could slow investment in capital-intensive projects.

Meralco eyes Albay expansion

Tycoon Manuel V. Pangilinan’s Manila Electric Co. (Meralco) is exploring a potential expansion into Albay, a move that could extend its reach beyond Metro Manila and nearby provinces.

The potential move comes after local officials in Albay sought Meralco’s assistance in addressing persistent power reliability issues that have frustrated consumers in the province.

Meralco chief external and government affairs officer Arnel Casanova said several mayors reached out to the company, citing frequent outages and the challenges these disruptions pose to attracting new investments.

‘They were having difficulty because businesses that are planning to move into their municipalities are unable to invest due to the unreliability of power,’ Casanova said in an interview.

The Albay Electric Cooperative (Aleco) currently serves as the province’s power distributor.

Casanova said Meralco has been encouraged to look into Albay and assist Aleco in improving its services, hinting at the possibility of submitting an investment proposal.

‘Hopefully, Aleco will be welcoming us to provide us with the necessary information so we could make a better proposal,’ he said.

Meralco, the country’s largest power distribution company, serves more than eight million customers within its franchise area comprising Metro Manila and nearby provinces.

As part of its growth and expansion strategy, the company has been pursuing joint venture opportunities with electric cooperatives across the country.

Among its targeted partnerships are electric cooperatives in Batangas and South Cotabato, where Meralco seeks to invest to improve their power distribution services.

Casanova, however, clarified that the company’s proposed partnership would not involve a takeover.

Meralco will enter as an investor with an effective control of the board, while the electric cooperative would continue to manage day-to-day operations within its service area.

‘If the people managing it are already capable, then we will just upgrade their capabilities. We are not taking over the cooperative; we are going to empower them,’ Casanova said.

The future of Asean-Brazil partnership

Returning to Manila after two years, I find both a country and a region pulsating with dynamism. Few developments have reshaped the international order as profoundly as the rise of Asia. Over the past few decades, the Asian continent has cemented its position as a center of economic growth, technological innovation and strategic presence. Within this landscape, Southeast Asia stands out, propelled by ASEAN’s centrality, in an upward movement that turns diversity into dialogue, and dialogue into integration.

The choice for integration over rivalry has paid off handsomely. Over the last decade, ASEAN economies have sustained an average annual GDP growth rate of roughly seven percent, nearly doubling their economies in purchasing power parity terms; the G7, by contrast, posted average growth of just 4.8 percent over the same period. While many advanced economies grapple with the challenges of rapidly ageing populations and shrinking workforces, much of Southeast Asia continues to enjoy a favorable demographic dividend, its expanding, working-age population actively driving innovation, productivity and long-term growth. These are the strengths that make ASEAN a core engine of the global economy, and Brazil has followed this trajectory with genuine admiration and interest.

Our connection, however, runs deeper than economic expectations. It dates back to 1946, when we established diplomatic relations with the Philippines, our very first bilateral tie in the region. Decades later, in 2012, Brazil became the first Latin American country to accede to the Treaty of Amity and Cooperation in Southeast Asia (TAC). These two landmarks lend particular significance to my visit today, as we celebrate the 80th anniversary of diplomatic relations with the Philippines and honor the 50th anniversary of the TAC.

Under President Luiz Inácio Lula da Silva, engagement with ASEAN has become a clear priority of the Brazilian foreign policy. We now maintain embassies in nine of the 11 ASEAN member-states, and our partnership follows a concrete roadmap: in 2023, Brazil and ASEAN agreed on Practical Cooperation Areas for 2024-2028, the reference document guiding our joint initiatives. In 2024, Brazil became the first Sectoral Dialogue Partner to accredit a designated ambassador to ASEAN, consolidating our institutional presence in Jakarta.

The ASEAN-Brazil Sectoral Dialogue Partnership is delivering tangible results, both with ASEAN as a whole and with its member-states. Since the Practical Cooperation Areas were adopted in December 2023, our collaboration has expanded rapidly across 11 priority sectors, from science and technology to renewable energy, education and women’s empowerment. This dynamic agenda has been matched by an unprecedented rise in high-level exchanges, missions and technical dialogues, culminating in President Lula’s historic participation in last year’s ASEAN Summit in Kuala Lumpur.

Sustainable development and social inclusion sit at the very core of the ASEAN-Brazil relationship. This September, Brazil will welcome a delegation of women agricultural leaders, selected by the ASEAN Secretariat, for a capacity-building program on women’s leadership within agricultural cooperatives, an opportunity to share our experience in empowering women and strengthening rural communities through cooperative production arrangements. In parallel, our joint bioenergy project is advancing into its next phase, focusing on sustainability criteria and certification schemes.

Environmental cooperation is another area that holds great potential. We are working to connect the ASEAN One Billion Trees Growing Program with Brazil’s Tropical Forest Forever Facility (TFFF), officially launched last year at COP30 in Belém, at the heart of the Brazilian Amazon Rainforest. This alignment of existing initiatives opens new avenues for collaboration on forest conservation and climate finance. We deeply value the early engagement already shown by ASEAN member-states and look forward to ASEAN’s continued support in broadening regional participation, helping the mobilization of eligible tropical forest countries and potential sponsoring partners across the Asia-Pacific.

Much has been achieved, yet more lies ahead. During his visits to Malaysia and Indonesia last year, President Lula formally expressed Brazil’s commitment to deepening ASEAN-Brazil relations and elevating it to the level of a Dialogue Partnership, a step that would be consistent with the strategic importance Brazil attaches to ASEAN and Southeast Asia as a foreign policy priority. As we pursue this higher level of ambition, we reaffirm our long-term commitment to a dynamic, resilient and forward-looking relationship.

On this milestone 50th anniversary of the Treaty of Amity and Cooperation, Brazil reaffirms its dedication to the Treaty’s founding principles: mutual respect for sovereignty and equality, non-interference, the peaceful settlement of disputes, the renunciation of the threat or use of force and effective cooperation among the High Contracting Parties.

At a time of rising geopolitical tensions and economic fragmentation, Brazil and ASEAN share a firm conviction in the vital role of multilateralism in addressing global challenges. We stand united in advancing sustainable development, promoting a fair energy transition, eradicating poverty, mobilizing climate finance and pursuing the reform of international governance. We look forward to the next chapter of our partnership.

BIR issues rules on creditable withholding tax

The Bureau of Internal Revenue (BIR) has issued a clarification on the application of creditable withholding tax (CWT) to top withholding agents (TWA) amid transactions involving manufacturers and direct importers of covered goods intended for wholesale.

The BIR issued Revenue Memorandum Circular (RMC) 79-2026 answering frequently asked questions on the 0.5-percent CWT for covered wholesale purchases, explains when the preferential rate applies and identifies documentary requirements needed to establish a supplier’s status.

The circular also outlines corrective measures when the wrong withholding tax rate has been used.

‘Through these clarifications, the BIR seeks to provide greater certainty for taxpayers while ensuring the proper and consistent application of withholding tax rules,’ the agency said in a statement.

Under the circular, the BIR explained that the 0.5-percent CWT rate applies if the supplier is either a manufacturer or a direct importer of the covered goods. It is not required that the supplier be both.

The agency said a local manufacturer that produces and sells the specified goods, even without import activity and a direct importer that brings in such goods for sale in the Philippines are subject to the preferential rate, provided the goods are covered and intended for wholesale.

It also explains how the phrase ‘intended for wholesale’ should be interpreted, as the 0.5-percent CWT is imposed on gross payments to manufacturers and direct importers of certain goods intended for wholesale.

The BIR explains that this phrase refers to the ‘nature of the sale as ordinarily undertaken by the manufacturer or direct importer in the regular course of its business, where the goods are sold primarily for resale, distribution or further commercial disposition and not for final consumption by the end-user.’

In addition, the RMC said motor vehicles imported or manufactured in completely knocked down (CKD) units are also subject to the 0.5-percent CWT.

BIR said CKD is defined as ‘completely knocked down parts and components, including sub-parts/parts and sub-assemblies/assemblies of motor vehicles for assembly into a complete unit.’

Purchases of this will be slapped with the 0.5-percent CTW, the BIR said ‘provided that the sale of such goods is made in the ordinary course of the seller’s trade or business.’

The circular likewise prescribes appropriate corrective measures when taxpayers or withholding agents apply an incorrect withholding tax rate.

These clarifications would help streamline compliance, reduce disputes and support more efficient tax administration, the BIR said.