philstar.com – Business – Page 196

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Key BSP rates to hold up until 2014 – DBS

Economy

Sep 142013

Key BSP rates to hold up until 2014 – DBS

MANILA, Philippines – The Bangko Sentral ng Pilipinas is expected to keep rates steady until the second quarter of next year, Singapore-based DBS said. This, as inflation remains manageable and amid the country’s favorable external balances, the bank said in its quarterly report published Friday. “From a price stability standpoint, there is again no urgency for the central bank to hike rates. Despite multiple quarters of strong GDP (gross domestic product) growth, inflation has been trending lower,” DBS said. “Stable food prices and depressed commodity prices have gone a long way towards keeping a lid on headline inflation. Barring an upward shock to these two components, a mild updrift in CPI (consumer price index) is expected as the global recovery gains traction, eventually translating into higher commodity prices,” DBS continued. Inflation has averaged 2.8 percent in the eight months to August, below the central bank target range of 3 to 5 percent for the year. The level is also below the BSP’s forecast of 3 percent. At the same time, DBS noted credit expansion may grow in the next few months as funds being flushed out of the central bank’s special deposit accounts find their way into the financial system. This may stoke inflation in the coming months, but DBS pointed out the rise in consumer prices is expected to remain manageable. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We maintain that inflation will average 3.1 percent in 2013 before rising to 4.1 percent in 2014. Monetary tightening Read More …

ADB cites top telcos, food companies for inclusive biz models

Economy

Sep 142013

ADB cites top telcos, food companies for inclusive biz models

MANILA, Philippines – Top telecom firms Smart Communications and Globe Telecom, Jollibee Foods Corp. and Nestlé Philippines were among the corporations cited in an Asian Development Bank (ADB) report focused on inclusive business (IB). The ADB report defines IB as a commercially viable and profit-making private company whose core business is designed to address pressing social needs of the poor and vulnerable people below the $3 international poverty line, sometimes referred to as the base of the income pyramid. However, the report made it clear that IB is entirely different from corporate social responsibility (CSR), social enterprise or microfinance. “Companies adopt IB primarily to create shared value, increase sales, enhance company reputation and develop the ability to maintain a stable of supply of inputs,” the report, which was co-sponsored by the Philippine Business for Social Progress (PBSP) and the Asian Social Enterprises Incubator (ASEI), said. IBs are still concentrated in a few sectors, such as the agricultural sector (24 percent) followed by the financial services sector (14 percent) and the manufacturing sector (10 percent). IB companies in others sectors (IT, energy, education, health, and transport and logistics) are fewer but exhibit profitable IB models. Smart and Globe were cited for bringing mobile communications to the lower segment of society through their prepaid e-loading network. Both telcos also started microfinance mobile banking operations. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In the food and beverage sector, Jollibee was cited for starting its Farmer Enterpreneurship Program, and subsequently expanding its Read More …

Budget carriers face slower growth this year

General

Sep 142013

Budget carriers face slower growth this year

MANILA, Philippines – Think tank Center for Aviation (CAPA) expects the low cost carrier (LCC) segment in the Philippines to post a slow growth this year due to the consolidation of major players after experiencing an over-capacity last year. In its latest aviation analysis entitled “Competition in Southeast Asia’s Low Cost Airline Sector Heats Up as Capacity Surges,” CAPA said the consolidation of major players in the industry has led to an improved outlook for the local airlines. The study showed that the total LCC fleet in the Philippines is expected to grow in 2013 by a relatively modest 10 percent to 69 aircraft excluding the unit of national flag carrier Philippine Airlines – PAL Express. CAPA said budget airline Cebu Air Inc. (Cebu Pacific) fleet is expected to grow to 48 this year from 41 in 2012, followed by AirAsia Philippines (from two to three), Tiger Air Philippines with five, Zest Airways Inc. of Ambassador Alfredo Yao to 13. The think tank said LCCs accounted for 80 percent of domestic passengers in the Philippines last year, giving it the highest LCC penetration rate in the world among medium and large size markets. But competition on many routes was irrational and four of the five LCCs were unprofitable – AirAsia Philippines, PAL Express, Tiger affiliate Tigerair Philippines, and ZestAir, CAPA said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 CAPA noted that Cebu Pacific was the only local airline that ended 2012 in the black. The budget carrier accounted Read More …

DTI mulls price freeze over Zamboanga City

Economy

Sep 102013

DTI mulls price freeze over Zamboanga City

MANILA, Philippines – The Department of Trade of Industry (DTI) is studying the possibility of imposing a price freeze in Zamboanga City amid the ongoing standoff between government troops and members of the Moro National Liberation Front (MNLF). DTI Provincial Director Rolando Acuña said the state agency has fielded a team to check on the prices of basic and prime commodities in the area. Basic commodities include fish, rice, sugar, meat and canned goods while prime commodities include fruits, flour, toiletry and soap, among others. Acuña said once in place, the price freeze would return the cost of basic commodities to their prices a month ago. Acuña said most businesses in the city remained close for the second day on Tuesday after fighting broke out between soldiers and the MNLF. He called on businessmen to not take advantage of the situation, and said he is coordinating with the city’s business group to convince establishments to open their shops.

July exports up by 2.3%

Economy

Sep 102013

MANILA, Philippines – The country’s merchandise exports increased by 2.3 percent to $4.836 billion in July 2013, up from the $4.727 billion posted in the same period last year, the National Statistics Office reported on Tuesday. Machinery and transport equipment, woodcrafts and furniture, chemicals, electronic products, and cathodes and sections of cathodes of refine copper supported the country’s exports, which grew by 7.7 percent from the $4.49 billion posted in June 2013. On the other hand, aggregate merchandise exports for the first seven months of the year dropped by 3.4 percent to $30.422 billion from the $31.487 billion posted in the same period last year. Electronic products, the country’s top export, accounted for 39.1 percent of the total export receipts at $1.893 billion, although it dropped by 5.6 percent from the previous month’s $2.006 billion. In terms of groups, manufactured goods made up 79.3 percent of the total export receipts, followed by mineral products (8.2 percent), total agro-based products (7.6 percent), special transactions (2.5 percent) and forest products (0.1 percent). Japan was the country’s top export destination with an 19.8-percent share, followed by China (13.2 percent), United States (12.6 percent), Hong Kong (8.5 percent) and Singapore (6.8 percent). Business ( Article MRec ), pagematch: 1, sectionmatch: 1

Flights to and from Zamboanga City still suspended

Economy

Sep 092013

Flights to and from Zamboanga City still suspended

MANILA, Philippines – All commercial flights to and from Zamboanga remain suspended on Tuesday due to the ongoing conflict between government troops and members of the Moro National Liberation Front (MNLF), the Civil Aviation Authority of the Philippines (CAAP) said. “Yung aming Notice to Airmen (NOTAM) ay hanggang alas-9 lang sana kagabi (Monday night) pero ang aming information from the Armed Forces, sa intelligence unit nila, and aming sariling intelligence people, ine-extend po namin ang suspension hanggang alas-9 ng gabi ngayong araw na ito (Tuesday),” said CAAP Deputy Director General Rodante Joya. About 10 flights will be affected for the second day of the travel suspension. On Monday, 10 flights were also canceled, stranding 1,500 passengers. Cargo planes are also covered by the suspension, Joya said. Zamboanga City Mayor Maria Isabelle Climaco appealed to CAAP to lift the suspension as it is affecting commerce in the city, but Joya said there were reports of stray bullets reaching the airport’s runway. The airport is about 3 to 4 kilometers away from the conflict area. Classes in all levels and work are also suspended for the day. The conflict broke out on Monday as MNLF forces reportedly ask for the recognition of Bangsamoro Republik, an unrecognized government declared independent last month by its leader Nur Misuari. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 At least four were reported killed while 14 were injured according to the city government. About 170 more were kept hostage by the group.

Jobless rate up in July

Economy

Sep 092013

MANILA, Philippines – The number of jobless Filipinos rose in July 2013, the government said Tuesday. Socioeconomic Planning Secretary ARsenio Balisacan announced that unemployment rate in the Philippines rose to 7.3 percent in July 2013 from 7 percent in July 2012. He said that although the Philippine economy, which had surprised with a strong growth in recent quarters, generated 620,000 new jobs, more Filipinos are looking for work. (To be updated)

Index climbs as market turns optimistic

Economy

Sep 092013

MANILA, Philippines – The Philippine Stock Exchange index (PSEi) rose 0.38 percent or 22.42 points to 5,997.04 as investors turned optimistic given positive developments overseas. “A discernible shift towards optimism continues to visit upon the market as the week opened,” said Justino Calaycay, an analyst at Accord Capital Equities Corp. “Still, the pace remains rather slow, evidencing a hangover of hesitation ahead of the crucial Federal Reserve meeting two weeks henceforth,” Calaycay said. The markets expects the US Fed to start tapering off its bond buying stimulus program, which has boosted liquidity in the financial markets. Asian bourses were also in the positive territory on the back of news on export growth and steady inflation in China. Japan’s Nikkei 225 rallied 2.48 percent or 344.42 points to 14,205.23 while Hong Kong’s Hang Seng index gained 0.37 percent or 83.75 points to 22,704.97. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Locally, all counters were in the green, led by industrial sector that added 0.69 percent or 63.40 points to 9,303.92. Turnover remained thin at P5.4 billion from P5.37 billion on Friday. Advancers outpaced decliners, 89 to 53, while 32 stocks did not change. “The PSEi made an early foray into and test of the 6,000-mark but continues to fail to hold as value turnover remains light,” Calaycay said.

Flights between Phl and Italy to increase after EU air ban lifted

Economy

Sep 072013

Flights between Phl and Italy to increase after EU air ban lifted

MANILA, Philippines (Xinhua) – The Philippines and Italy recently agreed to increase the number of air flights bound for both destinations after the European Union lifted its ban on Philippine air carriers last July, a senior official said here today. The development would be a boost to the country’s tourism sector and a relief to Filipinos working in Italy, said deputy presidential spokesperson Abigail Valte. Under the new terms, the Philippines and Italy would have 14 flights per week. This number of flights is a tremendous increase from one flight a week since 1969. “This is one of the good news particularly to the OFWs (overseas Filipino workers). They do not need to make long trip, (because) they could now take direct flights,” Valte said in an interview over a state-run radio station on Saturday. At present, there are 170,000 Filipinos working or staying in Italy. Valte said the increased flights between the two countries will boost the Philippine tourism front, which has been posting continuous increase in the number of visitors entering the country. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The Philippines’ Civil Aeronautics Board said earlier that the Philippines and Italy had agreed to increase seat entitlements between the two countries during the air service talks held in Rome on Sept. 5 and 6. The air service talks between the Philippines and Italy came after the European Union lifted its ban on Philippine air carriers, starting with Philippine Airlines, on July 10.

China's yuan joins world's most traded currencies

Economy

Sep 062013

China's yuan joins world's most traded currencies

Visitors look at the art work by American artist Tony Oursler entitled “100 Yuan (People’s Republic of China)” which features a projection of a Chinese renminbi note with a talking Mao Zedong at a gallery in Beijing, China. (AP Photo/Ng Han Guan) HONG KONG — China’s yuan has joined the ranks of the most traded currencies for the first time, underlining the growing might of the country’s economy, the world’s second-largest. The yuan became one of the top 10 traded currencies in 2013, rising to No. 9 on the list due to a “significant expansion” in offshore trading, the Bank for International Settlements said in a report Thursday. It’s a sharp jump from the bank’s last survey in 2010, when the yuan, also known as the renminbi, was No. 17 on the list. Turnover in trades involving yuan surged to $120 billion a day on average in April 2013, three and half times more than the $34 billion in 2010. Still, that figure is dwarfed by the dollar, which accounted for about $4.7 trillion daily. The Bank for International Settlements, which is an international organization of central banks, said the yuan along with the Mexican peso, which rose to No. 8, “saw the most significant rise in market share among major emerging market currencies.” China’s leaders want the yuan to become an international currency and have been promoting its use as an alternative to the dollar. The yuan is not yet fully convertible but Beijing has been gradually loosening controls. Read More …

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