(Defense Secretaries Lloyd Austin (U.S.) and Carlito Galvez (The Philippines) sign agreement in Manila Thursday.)
THURSDAY 2/2/23
New U.S. Military Bases in The Philippines – The United States has reached agreement with The Philippines to add four new military bases there, where American troops will be allowed to build facilities and “preposition defense assets” nearly nine years after the two nations signed the Enhanced Defense Cooperation Agreement (EDCA), Rappler reports.
This is “a really big deal,” U.S. Defense Sec. Lloyd Austin said from Manila, where the agreement was signed Thursday (per NPR). The agreement gives the U.S. access to a total of nine bases in The Philippines.
Definition: “Preposition defense assets” are military arms and equipment that “reduce deployment time,” according to Tactical Defense media.
Context: The deal is meant to check Chinese military presence in the region, especially in support of Taiwan. The EDCA was signed in 2014 between the Obama administration and the Aquino administration, but Philippines President Rodrigo Duterte pivoted the country toward Beijing when he took over in 2016.
Thursday’s agreement was signed under the administration of Ferdinand "Bongbong" Marcos Jr. – son of the late dictator Ferdinand Sr. and famous shoe-collector Imelda – who was elected president of The Philippines last year.
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Record Profits for Oil’s Big Three – The oil industry’s “three big majors” posted $134 billion in record profits for 2022 after Russia’s invasion of Ukraine and emergence from the COVID-19 pandemic’s global hibernation caused skyrocketing prices at the pump in the U.S. and elsewhere. Shell was the latest to post its record profit Wednesday, of $41.6 billion, up from its previous record of $31.4 billion in 2021, The Wall Street Journal reports. The other two of the “big three” are …
•ExxonMobil: $55.7 billion.
•Chevron: $36.5 billion.
For Comparison Purposes: General Motors and Tesla both have posted record net income for 2022; $14.5 billion for GM and $13.7 billion for Tesla, Autoweek reports.
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Powell on the Rate Hike – Chairman Jerome Powell said this about the Federal Reserve’s eighth consecutive interest rate hike Wednesday: “We can now say I think for the first time that the disinflationary process has started.” (Per Fortune.)
What This Means: The Fed is satisfied with improvements in the Consumer Price Index and after raising its interest rate from near-zero to more than 4% over the last year, passed an 0.25% increase Wednesday (to the 4.5% to 4.75% range). Though Powell warned of further increases this year, Wall Street took his comments as indication the hikes are over, with the tech-heavy NASDAQ up 2.2% and the New York Stock Exchange composite up 0.53% Wednesday.
--Compiled and edited by Todd Lassa