The madness of war

A supernova, scientists say, is the colossal explosion of a star, turning it into a stellar spectacle in the galaxy and is often believed to bring great prosperity to earth.

But ironically, a music festival in Israel named Supernova descended into chaos as Hamas fighters stormed the event last Saturday, heralding another chapter in this war that is as old as time.

Young Israelis were running for safety, videos showed; many of them were shot in the back as they ran.

This is the madness of war and it is heartbreaking but we cannot speak of the conflict without tracing its roots.

Home

As with many of today’s modern-day conflicts, the war between Israel and Palestine traces its beginnings to a colonial act, the over a century old Balfour Declaration, which in 1917 committed the British government to the establishment in Palestine of a national home for the Jewish people.

What followed were decades of fighting and killing; in 1948 Palestinian homes across towns and cities were destroyed in what would every year since be called the Nakba, which means catastrophic in Arabic.

Years of conflict continued, including military assaults on Gaza which left tens of thousands, including children, dead. At present, say news reports, there are roughly six million Palestinian refugees living elsewhere such as in Lebanon or Syria.

At the core of conflict is home and one can understand Palestine for wanting to defend its home and sacred spaces.

The conflict will have ripple effects across the globe, including this part of the world. There are 30,000 to 50,000 overseas Filipinos in Israel, according to data.

Already the local bourse reacted with fear. Some investors dumped their shares and moved to safer havens such as US Treasuries.

If Iran, which is a major global oil producer and which supports Hamas, joins the fray, the conflict will escalate.

As Michael Ricafort, chief economist at Rizal Commercial Banking Corp. said, “Iran could potentially use as a threat the blockage of the Strait of Hormuz, an important passage for international oil tankers, in retaliation to any action against it.”

So far, global crude oil prices are steady at $85 levels but still higher than the $82 to $83 late last week shortly before the Israel-Hamas war.

This of course could worsen and local players may use the conflict as a reason to jack up local pump prices in the coming weeks.

Added Ricafort: “The US and local financial markets stabilized for now, provided that the situation does not escalate further and does not spread to other countries in the Middle East, especially major oil producing countries such as Iran, which supports and finances Hamas, as this could potentially lead to some volatility in global oil prices; but so far the situation is contained for now.”

On OFW remittances, he said Israel accounted for $66.7-million OFW remittances from January to July 2023 or 0.5 percent of the total remittances; $110.6 million for full year 2022 or 0.3 percent of the total remittances.

While just a small percentage, it could still impact on the families in the Philippines of the affected OFWs in Israel.

The conflict might also slow down new OFW deployment to Israel, partly due to flight cancellations and safety issues until the situation improves.

In all, the effects of the Israel-Hamas conflict on the financial markets and economy remain manageable but we should brace ourselves if the war escalates. Oil prices, transport costs and an overall negative sentiment will affect Filipinos.

How will this be resolved? There’s no telling for now but I hope that past attempts to make peace will work out this time; for the sake of humanity, for the sake of the future and for the sake of the sons and daughters of Israel and Palestine.

Luxury developments in Metro Manila

Speaking of homes, there is one segment that has remained resilient despite the pandemic and other crises – the Philippine property sector, notably the luxury segment.

There is high capital appreciation for luxury developments in Makati and BGC with a significant compound annual growth rate (CAGR) of two percent to 14 percent, according to Leechiu Property Consultants (LPC).

Buyers of these luxury properties include business leaders, the Filipino elite, affluent retirees and investors, many of whom are repeat buyers, LPC’s second quarter report showed.

This is largely attributed to improvements in infrastructure, which further ease travel from residential areas to various locations for work and leisure.

I was driving along Ayala Avenue the other day and I couldn’t help but notice that The Estate Makati, developed by SMDC and Federal Land of the Sy and Ty families, is now closer to completion.

It is rising on the last undeveloped lot along Ayala & Apartment Ridge, giving investors the last chance to buy and be part of this new iconic residential community. It is still a still secluded, quiet enclave right smack in the bustling central business district.

This growing luxury segment is something to watch for sure.

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Email: [email protected]. Follow her on Twitter @eyesgonzales. Column archives at EyesWideOpen on FB.