Maniolas

WORLD BANK ECON UPDATE: World Bank lead economist Birgit Hansl answers queries from the press after giving an economic update on the Philippines. Also in photo is economist Kevin Chua. MIKE AMOROSO MANILA, Philippines – The World Bank has retained its three-year economic growth forecasts for the Philippines, but stressed these projections can be exceeded if the government can ramp up its infrastructure spending as planned and provide clarity on its economic policies. Drawing from its earlier forecast in April, the multilateral lending institution said it still expects the Philippine economy to grow 6.4 percent this year and 6.2 percent in the next two years. In its October update on the domestic economy titled “Outperforming the Region and Managing the Transition,” the World Bank said the country has weathered the challenging global economy and grown at a rapid pace over the past five years, “supported by strong macroeconomic fundamentals and a highly competitive workforce.” Domestic consumption is seen to prop up the economy driven by increased purchases from an expanding middle class, remittances from overseas Filipino workers, and increased employment. “The economic outlook is optimistic with risks tilted to the upside,” said the report, noting “substantial” improvements in macroeconomic stability by way of low and stable inflation rates, prudent fiscal management, and comfortable level of foreign reserves. The proposed budget for 2017 would increase infrastructure spending to 5.4 percent of gross domestic product (GDP) in order to address infrastructure bottlenecks and “enhance connectivity between the country’s wealthier and poorer areas.” Read More …

The peso still emerged as the least volatile currency in the region despite shedding four percent last month due to uncertainties brought about by the impending increase in US interest rates. MANILA, Philippines – The peso still emerged as the least volatile currency in the region despite shedding four percent last month due to uncertainties brought about by the impending increase in US interest rates. Latest data from the Bangko Sentral ng Pilipinas (BSP) showed the year-to-date volatility of the peso stood at 1.21 percent better than the Thai baht’s 1.3 percent, Indonesian rupiah’s 1.94 percent, Taiwanese dollar’s 2.01 percent, Singaporean dollar’s 2.1 percent, and the Malaysian ringgit’s 3.03 percent. The volatility of the Chinese yuan stood at 1.11 percent. The volatility of the euro stood at 1.48 percent, while that of the British pound or sterling averaged 4.45 percent after the United Kingdom decided to leave the European Union (Brexit) through a referendum held last June 23. The Indian rupee emerged as the least volatile currency with a rate of 0.86 percent, while Brazil’s real was the most volatile at 8.26 percent. The Swiss franc had a volatility rate of 1.56 percent followed by the Turkish lira with 2.05 percent, the Australian dollar with 3.05 percent, the Mexican peso with 3.33 percent, and the New Zealand dollar with 3.82 percent. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 BSP Governor Amando Tetangco Jr. told members of the Rotary Club of Makati West during a lunch meeting that the Read More …

The benchmark Philippine Stock Exchange index (PSEi) gained 48 points, or 0.62 percent, to finish at 7,677.73, while the broader All Shares index rose by 26.24 points or 0.57 percent to end at 4,559.48. File Photo MANILA, Philippines – The stock market recovered yesterday, tracking regional markets following reports Deutsche Bank has moved a step closer to reaching a US settlement. The benchmark Philippine Stock Exchange index (PSEi) gained 48 points, or 0.62 percent, to finish at 7,677.73, while the broader All Shares index rose by 26.24 points or 0.57 percent to end at 4,559.48. Most counters likewise closed in the green, with the mining and oil leading the gains. The mining and oil index gained 1.98 percent, up 216.65 points to finish at 11,156.14 as oil investors cheered the decision of the Organization of Petroleum Exporting Countries (OPEC) to cap supply, stabilizing market prices. Total value turnover reached P4.88 billion. Advancers beat decliners, 93 to 88 while 50 stocks were left unchanged. Deutsche Bank was slapped with a $14 billion fine by the US Department of Justice over its sale of mortgage-backed securities. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Deutsche Bank is Germany’s biggest bank which has been struggling for years, highlighting the need to push through with much needed financial sector reforms. However, over the weekend, there were news that Deutsche and the US Department of Justice were close to agreeing on a settlement of $5.4 billion, or more manageable than the $14 billion fine. Read More …

IMPORTERS could once more resort to a voluntary disclosure program for errors in their Bureau of Customs (BoC) records, with a draft memorandum order for the implementation of the post-clearance audit provisions of the Customs Modernization and Tariff Act (CMTA) providing for a Prior Disclosure Program (PDP), restoring the bureau’s post-clearance audit functions.

In this Friday, Sept. 30, 2016 photo, an electronic board of the Philippine Stock Exchange is reflected on the mirror as a woman sips her drink at the financial district of Makati, south of Manila, Philippines. Analysts and businessmen point to uncertainties about Philippine President Rodrigo Duterte’s policies and flip-flopping pronouncements as largely to blame for foreign selling in the stock market and the peso’s plunge to a seven-year low, reversing initial optimism after his June 30 inauguration. AP Photo/Aaron Favila MANILA, Philippines – Government economic managers said  the current financial market selloff won’t affect the Duterte administration’s economic program. “Economic reforms should continue to be implemented to boost growth and the country’s fundamentals should continue to be protected to sustain investor confidence,”  Finance Undersecretary Gil Beltran said in a statement. Beltran said the government should continue with its plan to boost spending and widen the budget deficit. The Philippine Stock Exchange index (PSEi) closed 7,629.73 last Friday, ending the third quarter down 2.02 percent since the Duterte administration took over on June 30. Since the start of 2016, however, the benchmark is still up 9.74 percent, although it lost 1.22 percent last week alone. The downward trend was also evident on the local currency which settled at  48.50 to $1 last week, the weakest since the global financial crisis in September 2009. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The peso lost 3.06 percent of its value since Duterte came to power.  It shed 1.06 percent against Read More …