World

Fed convenes to launch new salvo against record US inflation

The US central bank opened its policy meeting Tuesday, which is expected to produce a big rate hike as policymakers go on the attack against record high inflation.

Following a quarter-point increase in the benchmark lending rate in March, Federal Reserve Chair Jerome Powell and other central bankers have said a half-point increase could be announced when the two-day meeting concludes Wednesday.

The challenge for the policy-setting Federal Open Market Committee (FOMC) is to tame price pressures without tipping the world’s largest economy into a recession.

The Fed is “behind the curve on inflation and ready to move aggressively,” Grant Thornton’s Diane Swonk said in an analysis.

Consumer prices rose 8.5 percent in March compared to the year prior, the highest level in more than 40 years, and while the economy has recovered strongly from the pandemic, growth contracted 1.4 percent in the first three months of the year. 

A second quarter of negative growth would constitute a recession.

Analysts argue that avoiding a downturn during an aggressive tightening cycle is difficult to achieve, especially since the price increases are partially being driven by factors outside the Fed’s control, such as the war in Ukraine and Covid-19 lockdowns in China. 

Nor can the Fed impact the number of workers available in the US labor market to ease hiring challenges that have driven wages higher — fueling fears of a possible wage-price spiral.

“Many within the Fed have voiced their skepticism about achieving a soft landing at this late stage of the game. Even Powell has said the landing could be ‘soft-ish’ instead of ‘soft,'” Swonk said.

Powell has acknowledged the central bank will move quickly and front-load rate hikes, including with multiple half-point increases, if necessary.

The FOMC is at this meeting also set to begin the process of shedding its massive holdings of bonds built up during the pandemic as the institution sought to keep credit flowing through the economy. 

That also could unsettle financial markets and act as a brake on activity.

Kathy Bostjancic of Oxford Economics expects another half-point hike in June, and predicts the lending rate will end the year at 2.13 percent then rise to 2.63 percent by mid-2023.

“We look for the combination of slower aggregate demand and some easing of supply chain stresses in 2023 to relieve inflationary pressures,” she said in an analysis.

“Labor force participation should continue to recover, helping to temper wage growth.”

For the moment, the signals point to “relatively low but rising odds of a recession in the next 12 months” but Bostjancic warned the chances will increase if the factors driving inflation worsen.

Stock markets steady awaiting start of Fed meet

Major stock markets mostly steadied Tuesday, with traders braced for a sharp US interest rate hike to curb soaring inflation.

All eyes are on the conclusion Wednesday of the US Federal Reserve’s two-day policy meeting, where it is expected to lift borrowing costs by half a percentage point for the first time since 2000.

With the increase widely forecast, investors will be closely looking for clues on the outlook for futures rate rises.

Central banks worldwide are tightening borrowing costs despite concerns such action could hamper financial recovery from the pandemic and even push major economies into recession.

“The markets remain edgy, as the Fed is expected to be aggressive in this monetary policy tightening cycle,” said analysts at Charles Schwab investment firm.

“Moreover, sentiment continues to be hampered by the ongoing war in Ukraine, the recent jump in interest rates, the continued rally in the US dollar, and the economic impact of the covid lockdowns in China,” they wrote.

On Tuesday, the Reserve Bank of Australia lifted interest rates 25 basis points, the first hike since 2010 and by more than expected. Officials also indicated further increases were in the pipeline.

The move sent the Australian dollar briefly rallying more than one percent against the greenback before settling back slightly. 

Victoria Scholar, head of investment at Interactive Investor, said the Bank of England is expected to announce another rate hike on Thursday to its highest level since 2009.

Wall Street opened mixed, with the Dow Jones Industrial Average and S&P 500 flat while the tech-heavy Nasdaq was down 0.4 percent.

In Europe, Paris was up 0.1 percent in afternoon trading while Frankfurt was flat following sharp losses Monday.

London fell after a long holiday weekend, with investors catching up with losses elsewhere on Monday.

Traders continued to pore over earnings results from some of the world’s biggest companies.

US drug maker Pfizer reported a 77-percent jump in first quarter revenue thanks to its Covid vaccine, though it lowered its full-year profit forecast due in part of shifts in foreign exchange.

– Oil down –

British energy giant BP said its decision to pull out of Russia as a result of the war in Ukraine pushed it deep into the red in the first three months of this year.

But its underlying performance was strong thanks to a recent surge in oil and gas prices.

On Tuesday, crude futures declined ahead of a regular meeting this week of OPEC+.

The body comprising the Organization of Petroleum Exporting Countries plus Russia and other oil-producing nations must decide on output policy amid tight supply fears triggered by the Ukraine war.

The European Union is preparing a Russian oil embargo but some countries highly dependent on Moscow’s crude are seeking opt-outs from the possible ban.

China’s strict Covid lockdown has weighed on crude prices due to concerns about demand in the world’s top importer of oil.

– Key figures at around 1345 GMT –

New York – Dow: FLAT at 33,040.06 points

London – FTSE 100: DOWN 0.3 percent at 7,524.08 

Frankfurt – DAX: FLAT at 13,947.26

Paris – CAC 40: FLAT at 6,431.18

EURO STOXX 50: FLAT at 3,734.17

Hong Kong – Hang Seng Index: UP 0.1 percent at 21,101.89 (close)

Tokyo – Nikkei 225: Closed for a holiday

Shanghai – Composite: Closed for a holiday

Euro/dollar: UP at $1.0565 from $1.0506 on Monday

Pound/dollar: UP at $1.2550 from $1.2489

Euro/pound: UP at 84.18 pence from 84.09 pence

Dollar/yen: DOWN at 129.82 yen from 130.16 yen

Brent North Sea crude: DOWN 1.4 percent at $106.12 per barrel

West Texas Intermediate: DOWN 1.4 percent at $103.74 per barrel

EU members seek opt-outs from Russian oil embargo

European officials were preparing a new package of sanctions Tuesday to punish Russia for its invasion of Ukraine, but some members are jockeying to opt out of an oil embargo.

Several EU officials and European diplomats in Brussels told AFP that they expected the European Commission to hand over the draft plan to member states later Tuesday.

After that, ambassadors from the 27 EU countries will meet on Wednesday to give the plan a once-over, and it will need unanimous approval before going into effect.

The commission’s proposal would phase in a ban on oil imports from Russia over six to eight months, with Hungary and Slovakia allowed to take a few months longer, EU officials told AFP.

But Slovakia, which like Hungary is almost 100 percent dependent for fuel on Russian crude coming through the Druzbha pipeline, has said it will need several years.

Slovakia’s refinery is designed to work with Russian oil and would need to be thoroughly overhauled or replaced to deal with imports from elsewhere — an expensive and lengthy process.

Other officials, speaking on condition of anonymity during the legally and diplomatically fraught negotiation, said Bulgaria and the Czech Republic could also seek sanctions opt-outs.

One European diplomat warned that granting exemptions to one or two highly-dependent states could trigger a domino effect of exemption demands that would undermine the embargo.

The European Commission is not planning to unveil the draft in public before its president, Ursula von der Leyen, addresses the European Parliament on Wednesday. 

But member state missions were expected to receive the plan later Tuesday.

Russia attacks Mariupol plant, UK PM address Ukraine parliament

Russian forces launched an offensive Tuesday against the Azovstal steel plant, the last hold-out of Ukrainian forces in the battered southern port city of Mariupol, after a ceasefire that had allowed civilians to evacuate.

“Using artillery and aircraft, units of the Russian army and the Donetsk People’s Republic are beginning to destroy” the “firing positions” of the Ukrainian troops, the defence ministry said in a statement carried by Russian news agencies.

The ministry accused members of the Azov battalion and other Ukrainian troops of using a pause in fighting to take their combat positions at the plant.

It was not immediately clear what the attacks meant for the fresh attempt that had been planned Tuesday to evacuate civilians from the Azovstal complex, from where Kyiv said around 100 people had been brought out over the weekend.

Meanwhile Britain’s Boris Johnson became the first foreign leader since the war to address Ukraine’s parliament, promising another £300 million ($376 million, 358 million euros) in military aid.

Speaking via videolink, the premier evoked Britain’s fight against the Nazis in World War II in hailing Kyiv’s resistence as its “finest hour”, and vowed to help ensure “no-one will ever dare to attack you again”.

In a further attempt to punish Moscow for the February 24 invasion of its neighbour, the European Commission was also set Tuesday to propose a new package of sanctions, including an embargo on Russian oil.

Fighting meanwhile raged in the east and south of Ukraine, with Kyiv reporting attacks in and around Kharkiv, in the Zaporizhzhia and Donetsk regions.

At least nine people were killed Tuesday in the Donetsk region, according to regional governor Pavlo Kyrylenko, including three women in Vugledar as they tried to find water.

– ‘We don’t live, we survive’ –

The conflict has killed thousands of people and displaced more than 13 million, creating the worst refugee crisis in Europe since World War II.

The strategic southern port city of Mariupol has been under constant siege, with the last Ukrainian forces now confined to the sprawling Azovstal steel plant, where hundreds of civilians are also believed to be hiding in a maze of underground tunnels.

At the weekend, Kyiv said around 100 civilians were brought out although by mid-Tuesday, there was no sign of the planned convoy in Zaporizhzhia, 200 kilometres to the north-west, where a parking lot has been transformed into a reception centre.

“The evacuation continues,” the Ukrainian presidency said early Tuesday, before the Russian assault, following an agreement with the UN and the Red Cross.

Sviatoslav Palamar, deputy commander of Ukraine’s Azov military unit, said another 20 people were transferred out late Monday after a five-hour delay as “the enemy’s artillery caused new rubble and destruction”.

Elsewhere in Mariupol, residents are emerging from two months of hiding to find their once-vibrant city in ruins.

The city is now largely calm, AFP journalists saw on a recent press tour organised by Russian forces, with daily life dominated by the hunt for the most basic of essentials.

“We don’t live, we survive,” said Irina, a 30-year-old video game designer, as she gathered food and water from an aid distribution point. 

– ‘Never easy’ –

In the early weeks of the invasion, Russian forces encircled Ukraine’s capital Kyiv but have shifted to the east, including largely Russian-speaking areas, and south.

Russia’s defence ministry said Tuesday its forces had struck a logistics centre at a military airfield in the region around the Black Sea port of Odessa, used for the delivery of foreign-made weapons.

Storage facilities containing Turkey’s Bayraktar drones as well as missiles and ammunition from the United States and Europe have been destroyed, it said.

Local officials in Odessa, a largely Russian-speaking city and cultural hub, had on Monday said a 15-year-old boy died in a missile strike on a residential building there.

In the east, the Ukrainian military said Russians were continuing to advance towards Lyman and Sloviansk, a major urban hub in the eastern Donbas region whose capture would be a significant Russian gain.

Ukrainian soldiers in Lyman told AFP they have rigged with explosives a railway bridge over the Donets river on the way to Sloviansk, and were waiting for orders to blow it up.

“It’s never easy to destroy one of your own pieces of infrastructure. But between saving a bridge or protecting a city, there’s no question at all,” said one, going by the nom de guerre of “The Engineer”.

– ‘Sham referenda’ –

The United States warned on Monday that Moscow was preparing imminently to annex the eastern regions of Lugansk and Donetsk.

Pro-Russian separatists in the two regions declared independence in 2014, but Moscow has so far stopped short of formally incorporating them as it did that year with the Crimean peninsula. 

“Russia plans to engineer referenda upon joining sometime in mid-May,” said Michael Carpenter, the US ambassador to the Organisation for Security and Co-operation in Europe.

He said Russia was considering a similar plan in a third region, Kherson, where Moscow has recently solidified control and imposed use of its ruble currency.

As with Crimea, he vowed that the international community would not support Russian-dictated changes to Ukraine’s borders.

“Such sham referenda — fabricated votes — will not be considered legitimate, nor will any attempts to annex additional Ukrainian territory,” Carpenter said.

– Bracing for new sanctions –

Western powers have levelled unprecedented sanctions against Russia over the war while delivering money and weapons to Ukraine.

The European Commission will on Tuesday propose to member states a new package of measures, including a phased-out ban on Russian oil, officials said.

The package will also target Russia’s largest bank, Sberbank, which will be excluded from the global banking communications system SWIFT.

After talks on Monday, EU warned member states to prepare for a possible complete breakdown in gas supplies from Russia, on which many EU countries are highly dependent.

EU and French officials said the 27-member bloc was united with Poland and Bulgaria, whose gas supplies were cut last week after they refused to pay in rubles.

burs-ar/lc

Two dead in central China building collapse

At least two people have died in a building that collapsed in central China, state media said Tuesday, the first fatalities reported four days into a rescue operation searching for dozens still missing.

The commercial building in Changsha city, Hunan province — which housed apartments, a hotel and a cinema — caved in on Friday, sparking a massive response with hundreds of emergency workers.

By Tuesday, the flattened structure — which has left a gaping hole in a dense Changsha streetscape — was still a mess of debris and crumbled concrete beams.

The official Xinhua news agency reported in the evening that two people have died, citing local officials.

According to a video published by the People’s Daily newspaper, emergency response expert Liang Buge said the two victims had showed “no signs of life”. 

“We tried to remove them from the site, but found that they were pinned down by heavy objects, and there was no way to move them,” he said. 

Earlier in the day, a woman — still alive — was pulled out from the structure by emergency workers, state media said, hailing it as a “miracle”.

The state-run People’s Daily said the woman was conscious and able to talk to rescuers through a small hole before being rescued, adding that her “vital signs were stable”.

She was the ninth person to be extracted from the debris in four days. 

State broadcaster CCTV showed footage of a person wrapped in a thick striped blanket being carried on a stretcher while other rescuers applauded.

CCTV also released footage of rescuers using a small camera and microphone to communicate with a woman trapped behind the rubble — though it is unclear if it was the same person rescued Tuesday.

“Please come and save me as soon as possible,” the woman could be heard pleading.

“We are trying to save you now and we can see your hands… If your legs aren’t comfortable, you should stay still and save your strength,” one rescuer responded.

At least 14 people are still known to be trapped in the rubble while no contact has been established with 39 others missing.

– ‘Illegal alteration’ –

CCTV wrote on its official social media page Tuesday: “Looking forward to more miracles.” 

The day before, an eighth survivor was recovered from the site despite having had her limbs pinned down by debris. Emergency medical workers had delivered a saline solution to her through three-metre tubes during a long rescue process, Xinhua said.

Eleven people — including the building’s owner and a team of safety inspectors — have been detained in connection with the collapse, including two people suspected of engaging in “illegal alteration” of the building, according to Changsha authorities.

Authorities have alleged that surveyors falsified a safety audit of the building. 

President Xi Jinping earlier called for a search “at all cost” and ordered a thorough investigation into the cause of the collapse, state media reported.

Building collapses are not uncommon in China due to weak safety and construction standards, as well as corruption among officials tasked with enforcement.

In January, an explosion triggered by a suspected gas leak brought down a building in the city of Chongqing, killing at least 16 people.

French left closes ranks to hobble Macron in parliamentary vote

France’s left-of-centre parties were on Tuesday close to a broad alliance for June parliamentary polls, hoping that a united front can offer stiff opposition in President Emmanuel Macron’s second term after a disappointing presidential election.

Greens and Communists look to have fallen into line behind the hard-left France Unbowed (LFI) movement, and the once-mighty Socialist Party (PS) is expected to follow.

“The different parts of the left are not as irreconcilable as all that,” PS negotiator Pierre Jouvet told Europe 1 radio.

He said the talks were “a few steps from a historic agreement” — while acknowledging that there were “some adjustments” to party programmes and constituency allocations to fine-tune before a deal was sealed.

“There are some sticking points, sometimes on policy but mostly about seats,” said LFI negotiator Manuel Bompard.

A strong showing from LFI leader Jean-Luc Melenchon saw him fall just short of reaching the second round run-off in the April presidential vote, while other left candidates were all but wiped out.

After Macron’s presidential win, Melenchon immediately called on voters to “elect him prime minister” and hand the left a National Assembly majority to block the centrist’s plans.

Surveys from recent days suggest most French voters would prefer Macron, widely attacked for his pro-business reforms seen as favouring the rich, to “cohabit” with a prime minister from another political school of thought.

Like the presidential election, the legislative polls in France’s 577 constituencies work in a two-round system — meaning alliances off the bat offer the best chance of making it to the run-off.

“I think that if we’re being reasonable, we have to get things finalised today” with just weeks until the first round on June 12, LFI lawmaker Eric Coquerel said.

– Fear of ‘disappearance’ –

At stake in the negotiations are important policy issues — with LFI’s proposal to unilaterally “disobey” the provisions of some European Union treaties a particular sticking point for more moderate potential allies.

Last week, the PS indicated that it could broadly accept 12 of Melenchon’s core policy proposals, including raising the minimum wage, reducing the retirement age to 60 and rolling back labour market reforms.

Party leaders appear determined to press on despite opposition from heavyweights like former president Francois Hollande, in power just five years ago before the Socialists’ precipitous fall from grace.

He has warned the proposed left-wing tie-up could amount to the “disappearance” of the Socialists.

Hollande “set Macron up for us” by naming the former banker economy minister in his government, LFI MP Francois Ruffin retorted on broadcaster BFM on Tuesday.

But other PS figures have called for any alliance deal to be subject to a vote by members — so far brushed off by the party’s negotiators.

Behind the euphoria at overcoming the traditionally fragmented French left’s differences, the junior partners are also eyeing how constituencies will be parcelled out between the parties, with each hoping to run on the united ticket in a maximum of “winnable” seats.

The Greens will run for 100 seats, with 30 seen as winnable, while the PS hopes to add to its existing parliamentary group of 25 MPs.

“Unbelievable that all these people supposedly shot through with principles are ready to abandon all convictions… for a handful of seats,” Sacha Houlie, a pro-Macron MP, tweeted on Monday.

“And they want to govern our country?” he added, potentially foreshadowing the majority’s line of attack on its new opponents.

Pfizer Q1 revenues jump 77% to $25.7 bn on Covid-19 vaccine

Pfizer reported another quarter of huge revenues growth because of its Covid-19 vaccine on Tuesday, but lowered the company’s full-year profit forecast due in part to shifts in foreign exchange.

The major American drugmaker reported revenues of $25.7 billion for the first quarter, up 77 percent from the year-ago period, with the Covid vaccine taking in $13.2 billion.

Net income jumped 61 percent to $7.9 billion.

Pfizer confirmed its full-year revenues forecast, in which about just over half of total sales stem from the Covid-19 innoculation and from Paxlovid, the company’s therapeutic to treat the coronavirus.

Pfizer, which has shipped some 3.4 billion doses of vaccine to 179 countries, has won regulatory approval for its shot in most age groups, but continues to study its use in children younger than five.

The company is also exploring “potential next-generation vaccines, including variant vaccines” for the fall season, Chief Executive Albert Bourla said in prepared remarks.

In the first quarter, Paxlovid took in $1.5 billion in global sales. But Pfizer expects 2022 sales of the medicine of $22 billion as it ramps up production and distribution.

The World Health Organization last month “strongly recommended” the antiviral pill Paxlovid for patients with milder forms of the disease who were still at a high risk of hospitalization. 

But WHO said it was “extremely concerned” that low- and middle-income countries would be “pushed to the end of the queue” amid tight global supplies.

Pfizer now sees full-year adjusted profits of $6.25 to $6.45 a share, down 10 cents from the previous range.

The company attributed the lowered forecast to an accounting change in research and development expenses and to changes in the foreign exchange market that have seen the dollar rise compared with other major currencies.

Shares of Pfizer dipped 1.2 percent to $47.77 in pre-market trading.

Fossils dating back 66 million years found outside Bangkok mall

More than 70 shells embedded in a footpath outside a Bangkok shopping mall have been found to be the fossils of marine creatures that lived more than 66 million years ago, Thai experts have confirmed.

An eagle-eyed shopper first spotted the snail-shaped fossils, measuring up to 12 centimetres (five inches) across, dotted along a 400-metre stretch of pavement by the Siam Square shopping centre in a major tourist district.

Palaeontologists from the Ministry of Natural Resources and Environment investigated and found 77 ammonite fossils.

Ammonites are marine creatures believed to have died out 66 million years ago, Preecha Saithong, director of the ministry’s fossil protection division, told AFP on Tuesday.

“The ammonites are real,” he said, adding that the fossils differed from ones usually found in Thailand.

Local media reported that the footpath was repaired two years ago and the shells may have been inserted into the concrete as decoration by sub-contractors.

The fossilised ocean-dwelling molluscs, which lived during the Jurassic and Cretaceous periods, are sold as souvenirs in several popular tourist destinations including Madagascar and Morocco.

BP plunges deep into red on pullout from Russia

British energy giant BP said Tuesday that its decision to pull out of Russia as a result of the war in Ukraine pushed it deep into the red in the first three months of this year.

BP said in a statement that it booked its biggest-ever quarterly net loss of $20.4 billion (19.4 billion euros) in the period from January to March, compared with profit of $4.7 billion a year earlier. 

Revenue jumped 40 percent to $51 billion in the three-month period as the war fuels a rise in oil and gas prices.

There have been repeated calls in Britain for a windfall tax on energy majors as consumers endure a cost-of-living crisis caused by the highest rate of inflation in decades, also as economies reopen from pandemic lockdowns.

Nevertheless, Prime Minister Boris Johnson, this week facing a mid-term test in local elections, ruled out such taxes on companies like BP and Shell, arguing it would derail efforts to meet climate goals. 

“If you put a windfall tax on the energy companies, what that means is that you discourage them from making the investments that we want to see” in cleaner energy, Johnson told the television show, Good Morning Britain.

BP booked a pre-tax charge of $25.5 billion after pulling its 19.75-percent stake in energy group Rosneft, ending more than three decades of investment in Russia.

“Our decision in February to exit our shareholding in Rosneft resulted in the material non-cash charges and headline loss,” chief executive Bernard Looney said. 

That wiped out the positive effect of surging energy prices, driven by concerns of tight supplies following the invasion by major oil and gas producer Russia. 

However, at an underlying level, rocketing energy prices enabled BP to record its best three-month performance since 2008 with profit of $6.2 billion. 

Looney said that “in a quarter dominated by the tragic events in Ukraine and volatility in energy markets, BP’s focus has been on supplying the reliable energy our customers need”. 

The European Commission was Tuesday set to propose to member states a new package of sanctions against Russia over President Vladimir Putin’s decision to invade Ukraine, including an embargo on Russian oil.

And the EU has warned member states to prepare for a possible complete breakdown in gas supplies from Russia, insisting it would not cede to Moscow’s demand that imports be paid for in rubles.

– UK investment –

BP also unveiled plans to invest up to £18 billion ($22.5 billion, 21.5 billion euros) in green and fossil fuel operations in the UK by the end of the decade.

While Looney said BP was “fully committed to the UK’s energy transition” to net zero, the company “intends to continue investing in North Sea oil and gas” amid Britain’s near-term energy security needs in the wake of the Ukraine war.

“We’re backing Britain,” Looney said.

“It’s been our home for over 110 years, and we’ve been investing in North Sea oil and gas for more than 50 years.” 

In the North Sea, BP plans to develop “lower emission oil and gas projects to support near term security of supply”.

The company has also proposed new offshore wind projects and plans for hydrogen production facilities.

– Share price boost –

Despite the massive first-quarter loss, BP’s share price jumped 2.9 percent to 403 pence in morning trade on London’s FTSE 100 index, which was down overall.

Investors welcomed BP’s announcement that it will repurchase $2.5 billion in shares.

“The exit from Russia, while bringing with it considerable costs, arguably helps with the transformation of the group and strong cash flow is helping to bring down debt,” said AJ Bell investment director Russ Mould.

“BP has ambitious plans to become cleaner and greener but today’s update is a reminder that fossil fuels, with all the environmental and geopolitical mess they entail, remain central to the company for now.”

Philippines' Duterte vows to ban online cockfighting

Philippine President Rodrigo Duterte has vowed to ban online cockfighting following outcry over the industry sparked by the disappearance of dozens of workers and concerns about the social costs of gambling.

Cockfighting is a popular sport in the Southeast Asian nation, but the Covid-19 pandemic forced the closure of traditional arenas where spectators flock to watch roosters wearing bladed spurs fight to the death.

The government instead granted franchises to seven firms to show the bloody contests and take bets online — known as “e-sabong” — 24 hours a day.

Duterte had previously rejected calls to stop the practice, noting that the roughly 640 million pesos ($12 million) in monthly taxes from the industry were helping to replenish government coffers depleted by the pandemic.

But in a recorded television address aired Tuesday, weeks before he leaves office, Duterte said “e-sabong will end by tonight”.

Interior Secretary Eduardo Ano had advised Duterte to ban it due to its “social impact”.

“This is his recommendation and I agree with it and it is good,” Duterte said.

A presidential palace official told AFP Tuesday that a ban had not yet been issued.

Online cockfighting came under scrutiny this year after the alleged kidnapping and suspected murder of 34 people who had supplied roosters to a licenced e-sabong operator.

Senator Ronald dela Rosa, a Duterte ally who chaired a public hearing into the sport in March, said the victims were suspected of sabotaging the roosters so they would lose their fights. They would then bet on the other roosters.

Online cockfight operators told the hearing that about three billion pesos were bet on cockfights in the Philippines every day.

The easy availability of e-sabong platforms also fuelled unease as reports emerged of fans becoming addicted to gambling, neglecting their work and families, and pawning assets for bets.

In one extreme case, a young Manila mother was accused of selling her eight-month-old daughter for about 45,000 pesos to a buyer she contacted through social media in March to pay off e-sabong debts.

Police said the girl was later found and the buyer arrested.

Traditional cockfighting operators have also been wary of the online version, which they said had effectively cornered all the money generated by the sport.

“Most of the other cockpit operators were unable to earn anything for more than two years already,” Alfredo Lamoste, a Manila-based pit manager, told AFP recently.

Spokespeople for e-sabong operators could not be reached for comment.

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