Market up 94 pts, posts best start since 2009

 Economy
Jan 022014
 
Market up 94 pts, posts best start since 2009

MANILA, Philippines – The Philippine Stock Exchange index (PSEi) rallied 94.43 points to 5,984.26, marking its best start since 2009. It was also the highest closing for the main index since ending at 6,008.94 on Dec. 9, 2013. “We played catch up with the regional markets because for a few days we were on holiday,” said Astro del Castillo, managing director of First Grade Finance Inc. Financial markets just opened yesterday following the New Year holidays. Justino Calaycay Jr., an analyst at Accord Capital Equities Corp., said yesterday’s run-up beat the 1.2-percent gain on the first trading day of 2013, 0.6 percent in 2012 and 0.3 percent in 2011. It is the best start for the main index since rallying 5.4 percent in the first trading day of 2009. The broader all shares index gained 1.23 percent or 44.51 points to 3,658.83. “Market breadth stayed widely positive the entire day, the bears  hardly  making a dent on the bull’s lead,” Calaycay said. Local shares bucked the downtrend in Asia, weighed down by the slower-than-expected manufacturing numbers out of world’s second largest economy China in December. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Locally, all counters were in the green, paced by property firms that rallied 2.29 percent or 50.53 points to 2,255.98. However, turnover remained thin as most investors were still on holiday mode, del Castillo said. The value of shares traded declined to P3.81 billion from P6.38 billion on Dec. 27, the final trading day for 2013. Read More …

Bombardier said to win order for $2.2B in jets

 Economy
Dec 312013
 
Bombardier said to win order for $2.2B in jets

NEW YORK  — Bombardier Inc. said Tuesday it has received a firm order for 38 business jets with a combined list price of about $2.2 billion. Bombardier didn’t disclose the precise value of the deal — customers such as airlines routinely get discounts from plane manufacturers — and didn’t identify the buyer. The Canadian plane maker said the order covered 28 Global jets and 10 Challenger 605 aircraft. The Global line includes four models capable of carrying up to 19 passengers on flights as long as 7,900 nautical miles. The Challenger jet can carry 12 passengers and a crew of three up to 4,000 nautical miles. Separately, Bombardier announced that its transportation division ended a contract for new signaling equipment for the London Underground. The subway system said it would re-bid a contract that was awarded to Bombardier in 2011 and valued at $577 million at the time. The company didn’t provide a detailed explanation, but The Telegraph of London reported that Bombardier determined that its signaling system wasn’t compatible with the Underground’s old infrastructure. A spokeswoman for the Montreal-based company did not immediately return a call for comment. 

YEARENDER: Typhoons blow away early gains in DA’s food sufficiency program

 Economy
Dec 312013
 
YEARENDER: Typhoons blow away early gains in DA’s food sufficiency program

MANILA, Philippines – The series of strong typhoons that entered the country in the second semester of the year dented the production of several industrial and staple crops, prompting the Agriculture department to review its flagship program on food staple production and institute various interventions for the subsector. Significant expansion opportunities in the fisheries and animal industry sectors, however, have opened this year as the Philippines remained free from, avian influenza, foot-and-mouth disease and early mortality syndrome (EMS) that devastated the poultry, livetstock and shrimp industries of neighboring Asian countries. After the onslaught of Typhoon Yolanda in November, the Agriculture department conceded that self-sufficiency in rice would not be attained this year. Under the FSSP, self-sufficiency entails covering the annual domestic per capita consumption of 115 kilograms per year while still providing for the 90-day buffer stock requirement. After the super typhoon pummeled Visayas, the country is seen to attain a sufficiency level of 97 to 98 percent this year. To beef up the country’s buffer stock, the National Food Authority Council approved the importation of 500,000 metric tons (MT) of rice from Vietnam which would be shipped in tranches until the end of the first quarter of 2014. Even before Yolanda demolished rice cultivation areas in Visayas, Typhoon Santi battered  in October 214,640 hectares of rice lands in central Luzon, putting pressure on the country’s rice production target of more than 20 million metric tons this year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Agriculture Secretary Proceso Read More …

LTO-IT project cost slashed to P3.44B after 2 failed bids

 Economy
Dec 312013
 
LTO-IT project cost slashed to P3.44B after 2 failed bids

MANILA, Philippines – The Department of Transportation and Communications (DOTC) has decided to slash the cost of the Land Transportation Office (LTO) information technology system project to P3.44 billion from the original P8.2 billion after two failed biddings. The DOTC said it would hold a pre-bid conference on Jan. 20 and open the bid documents on Feb. 18 for the DOTC Road Transportation IT Infrastructure project. It added that the project involves the customization, development, integration, procurement, supply, delivery, installation, implementation, service and maintenance of the information and communications technology system of the agency. The winning bidder would design and implement the required databases; establish or set up the LTO Data Center; supply, deliver, test, document, and install appropriate computing products and other resources relative to the implementation of the project on DOTC or LTO IT infrastructure and environment facilities; and deliver all hardware peripherals with software and corresponding licenses in the name of DOTC and warranties to efficiently run the system. Likewise, the winning bidder would also operate and maintain the IT service delivery for LTO within the period of the contract and identify key processes and systems for the improvement, efficiency, and security of the DOTC or LTO processing. Once the system is put in place, the DOTC said it would be easier for authorities to recover stolen vehicles, trace smuggled vehicles, prevent double registration, and monitor unregistered vehicles. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The agency added that the project would implement a server-based Read More …

Reading helps make a better nation

 Economy
Dec 312013
 
Reading helps make a better nation

The festive Christmas week provides me reason to momentarily deviate from writing mainly commentaries on economic issues in this column. So, today, I pay attention to a topic that is unexpectedly different: On reading. (In this way, too, I send holiday greetings to my readers.) “A nation of literates is not necessarily a nation of readers.” To some, the ultimate reward of leisure is peace of mind: restful use of time to enjoy. Reading is one such. A nation of readers is a nation of vigilant and knowledgeable literates. In our country, though the literacy rate is high, there are not enough readers among us. Many know just exactly what I mean. The lack of readers among us shows easily when groups of persons are massed in public places. Imagine a scene such as when people are traveling and there is so much free time available for them, because waiting is a major part of the activity. We wait for plane check-ins, for bus and metro rides, for people we expect to meet. And then, we wait for hours traveling to reach our destination. On such occasions, there is either much or little talk, food munching or sleep, or cellphone use or gaming, or, simply, blank expressions of bored people. It is a great rarity to see individuals focused on any reading material at all. Similar settings in most developed countries produce a common thread: a substantial fraction of the people is oftentimes quietly engaged in their own activities – Read More …

DOTC to bid out P4-B Davao wharf

 Economy
Dec 312013
 
DOTC to bid out P4-B Davao wharf

MANILA, Philippines – The Department of Transportation and Communications (DOTC) will bid out the construction, operation and maintenance of the proposed P4.04-billion Sasa Wharf at the Davao Port in Mindanao in the first quarter this year. Transportation Secretary Joseph Emilio Aguinaldo said the agency is set to present the project to the National Economic and Development Authority (NEDA) for approval early this year.  “We will go up to NEDA and we hope to bid out the project in the first quarter,” Abaya stressed. The project, he explained, would be under the government’s Public-Private Partnership (PPP) scheme. The government is looking at increasing the capacity of the Davao Port to 1.2 million twenty-foot equivalent units (TEUs) over the next five years based on the estimates made by the Philippine Ports Authority (PPA) from the current level of 700,000 TEUs. The DOTC earlier commissioned a team led by state-run Development Bank of the Philippines (DBP) as transaction advisor for improvement works on the Sasa Wharf. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The DBP team is composed of the International Finance Corp. (IFC) and HPC Hamburg Port Consulting Gmbh of Germany. Davao Integrated Port Stevedoring Service Corp. of Razon-owned International Container Terminal Services Inc. (ICTSI) operates a cargo handling facility at the Davao Port. Abaya earlier said the Aquino administration is set to rehabilitate more ports to energize the countryside and promote inter-island trading and tourism. He said the objective is to reduce compliance, transport and transaction costs for agriculture Read More …

Phl flight passengers can now use laptops, mobile phones while on board

 Economy
Dec 312013
 
Phl flight passengers can now use laptops, mobile phones while on board

MANILA, Philippines – The Civil Aviation Authority of the Philippines (CAAP) is now allowing airline passengers to use their laptops, mobile phones and devices during flights. The agency has released memorandum circular 52-13 which lets the conditional use of transmitting portable electronic devices (TPEDs), music players, and global system for mobile communication on-board aircraft (GSMOBA) on all commercial aircraft operating within the territorial jurisdiction of the Philippines. According to the memorandum, airline passengers may use their laptops and cellular phones, internet or short-message-service (SMS) or voice communications and other broadband services during flights provided that they meet the conditions set by the CAAP. The memorandum states that when the aircraft doors are still open, the devices can be used unless the pilot-in-command or the senior cabin announce a prohibition. But when the aircraft is refuelling, the use of laptops, mobile phones and broadband communications will not be allowed. “In this instance, all transmitting portable electronice devices must be turned-off,” the memorandum said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 When the aircraft doors are closed, the devices should be placed on silent mode and could only be used for SMS, internet, or games. Voice communications are not allowed when the aircraft doors are closed except the use of GSMOBA if it does not interfere with the orderly conduct of flight. The use of MP3s should always be with earphones and not with additional or separate speaker and or amplifiers, the memorandum also said. The memorandum shall take effect Read More …

Warren Buffett's firm acquiring Phillips 66 unit

 Economy
Dec 302013
 
Warren Buffett's firm acquiring Phillips 66 unit

OMAHA, Nebraska — Warren Buffett’s company has agreed to trade roughly $1.4 billion of its stock in Phillips 66 for one of the refiner’s chemical businesses. Houston-based Phillips 66 said Monday that Berkshire Hathaway will give up about 19 million of its 27.2 million Phillips 66 shares to acquire a business that makes additives that help crude oil flow through pipelines. The exact number of shares will be determined by the price of the Houston-based company’s stock when the deal closes. That’s expected to happen in the first half of 2014. Buffett says the business Berkshire is acquiring delivers consistently strong financial performance. He says Berkshire’s Ohio-based specialty chemical maker, Lubrizol, will oversee the unit’s strategic direction. Phillips 66’s stock closed at $74.72 on Monday.

Imposition of concurrent Interests: Basis and effects

 Economy
Dec 302013
 
Imposition of concurrent Interests: Basis and effects

In all assessments by the Bureau of Internal Revenue (BIR), the total amount of taxes a taxpayer has to pay grows exponentially as the tax investigation continues to be unsettled. These deficiencies usually involve large amounts which anybody, even those who are not privy to the tax investigation, speculate on the validity of the large deficiencies involved in an investigation. Needless to mention, many people wonder how the BIR came up with a billion-peso worth assessment against our Pinoy pride, Manny “Pacman” Pacquiao. The unimaginable amount of deficiency taxes involved in some BIR investigations could be attributed to the increment of the unpaid basic tax the taxpayer is being assessed of. This increment is commonly known as the penalty interest. Generally, an interest at the rate of 20 percent per annum (assuming there is no element of fraud) is imposed on the unpaid taxes. But the imposition of this interest retroacts from the time the taxpayer was supposed to pay the tax until the actual payment thereof. But assessments usually come out two years after the taxpayer filed its return. This is because the BIR has three years within which to assess any deficiency taxes (again assuming there is no element of fraud). Thus, if an assessment is issued two years after the taxpayer filed its return, an automatic 40 percent (20 percent x 2) interest will be imposed on the basic deficiency tax. This is one reason why deficiency taxes involve a considerable amount. The interest imposed in this Read More …

YEARENDER: Market volatility likely to continue

 Economy
Dec 302013
 
YEARENDER: Market volatility likely to continue

MANILA, Philippines – Waves of volatility had hit global financial markets including those in the Philippines this year on the back of anticipation for the US Federal Reserve’s tapering of stimulus. Despite the Fed announcement on Dec. 18 that it will finally start decreasing the volume of its massive asset purchases, the Bangko Sentral ng Pilipinas said volatility is seen to remain as the pace and timing of further scaling back the stimulus are still unknown. “As long as there is uncertainty, volatility is likely to continue. So the less uncertainty there is, then we can expect dissipation of volatility,” BSP Governor Amando M. Tetangco, Jr. told The STAR. “Now at least the uncertainty has been somewhat reduced because of the announcement of the Fed of the start of the tapering in January 2014 but the speed or the pace of the tapering and the amount that will be reduced are still unknown at this point in time,” he added. The Fed, long expected to taper stimulus since May this year, has said it will finally reduce its monthly asset purchases by $10 billion to $75 billion starting January 2014 following the release of strong labor market data and proof that the recovery of the US economy is gaining traction. But the Fed said it may implement further cuts in its bond buying program next year depending on the US jobs data, inflation, and if the economy is really getting strong enough to warrant a complete scale back of the Read More …

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