Maniolas

MANILA, Philippines – Philippine share prices retreated for the second consecutive session yesterday despite a hot start as external factors weighed down the benchmark index. The Philippine Stock Exchange index (PSEi) successfully touched the 7,500 mark with an intra-day high of 7,508.77. The PSEi, however, failed to hold on to its early gains as it ended losing 0.43 percent or 32.51 points at 7,452.81 while the All Shares index likewise slipped 0.42 percent or 18.48 points to close at 4,366.13. “Another mixed tone was expected as foreign players checked on funds flow given China market’s sharp retreat,” said Jason T. Escartin, investment analyst at F. Yap Securities. China yesterday released its fourth quarter gross domestic product (GDP) which grew 7.3 percent, its slowest pace in 24 years. Aside from China’s GDP outcome, the International Monetary Fund’s decision to lower its forecast for global economic growth this year also put more anxiety to investors yesterday. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Another possible source of concern for the global picture emerged after the IMF, citing strong and complex cross currents pared its global growth forecast by the most in three years. It likewise voiced a long-held view (fear) of potential capital flight out of emerging markets once the Federal Reserve begins to raise US interest rates,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp. As a result, the local market saw a bloodbath with all counters finishing in the red. Mining and oil firms took the Read More …

THE AGRICULTURE department has allocated P11 billion for the first year of the Philippine Rural Development Project (PRDP), an initiative funded by a loan from the World Bank.

MANILA, Philippines – The World Wide Fund for Nature (WWF) urged authorities to discuss more climate solutions following the recent visit of Pope Francis. The Philippines is the third most vulnerable country to climate change, a tropical archipelago besieged by no less than 20 storms yearly, the environmental group said. The group cited Super Typhoon Haiyan (Yolanda) which left at least 6,000 dead and caused over $14 billion in economic damage.  “With impacts ranging from stronger typhoons, floods, droughts to forced migration, climate change is a reality that millions of Asians have had to face early. Whether or not the Philippines is a major carbon emitter is beside the point. Many countries which contribute the least to global carbon emissions are the most vulnerable, having fewer resources to cope with disasters,” the group said. As such, the group called on authorities to craft out more proactive – rather than reactive – climate solutions. The Philippine climate adaptation efforts include a four-year, 16-city study to prepare the largest Philippine cities for climate impacts, it said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The group predicts that the Philippines’ global emissions will increase beyond the current 0.35 percent due to economic and population growth coupled with rapid urbanization.  “The world must learn from Typhoons Ondoy, Sendong and Haiyan – lessons paid for in lost lives and livelihoods,” said WWF-Philippines Climate Change and Energy Program head Angela Ibay. She said the Pope’s recent visit to Tacloban shows that the Church cares Read More …

MANILA, Philippines – Moody’s Investors Service has upgraded its outlook on the global airline industry to positive from stable as the sharp drop in fuel costs is expected to bolster financial performance of major players. Moody’s expects the operating profit margins of the industry to settle at 12 percent to 14 percent this year and 11.5 percent to 13.5 percent next year, instead of the estimated 8.5 percent to 9.5 percent for 2014. “US carriers will continue to garner the largest increases, leading to stronger performance relative to airlines based in increasingly competitive developing markets, and in Europe,” Moody’s vice president and senior credit officer Jonathan Root said. In a report titled “Lower Fuel Costs to Boost Operating Profit Margins; Yield Growth Still Constrained,” Moody’s said the outlook reflects expectations for the fundamental business conditions in the industry over the next 12 to 18 months. Passenger demand would also increase due to steady economic growth, higher disposable incomes and rising air travel in developing economies. Passenger demand, which is measured as revenue passenger kilometers (RPKs), is estimated at five percent in 2015 and six percent in 2016. Yields are forecast at flat to two percent in 2015 and one percent to three percent in 2016. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Despite the slower yield growth, Moody’s said its profit margin and RPK forecasts support a positive outlook. With the average price of jet fuel declining $1 per gallon or more in 2015, Moody’s pointed out that Read More …

MANILA, Philippines – Government borrowings slightly declined in the first 11 months of 2014 due to lower borrowings from the domestic market. Based on data from the Department of Finance, the government borrowed P330.72 billion from January to November 2014, down from P333.25 billion a year ago. Of the total amount, P235.12 billion was sourced locally mainly through the sale of treasury bonds. The amount marked a 53.8 percent drop from the P509.28 billion recorded in the 11 months ending November 2013. On the other hand, foreign borrowings, done largely by tapping loans from development lending institutions, grew more than three-fold to P95.6 billion. Debt secured from foreign lenders was in the form of P55.34 billion in program loans and P11.59 billion in project loans aimed at supporting post-Yolanda relief and recovery initiatives. The government borrows to pay maturing obligations and plug the deficit in its budget. The higher the fiscal deficit, the higher will be the borrowing requirements of the government. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In November alone, borrowings by the government increased to P33.9 billion from P31.52 billion. Debt incurred from the domestic market went up to P33.28 billion from P30.65 billion. The country’s outstanding debt rose to P5.72 trillion as of the end of November last year due to higher domestic obligations.  A big chunk of this amount or 66 percent was accounted for by peso-denominated liabilities while the balance of 34 percent comprised debts denominated in foreign currencies. The government has Read More …