Maniolas

LONDON (AP) – Fitch ratings agency has upgraded Spain’s credit grade, citing an improvement in the outlook of the country’s finances and economy. The agency lifted the country’s sovereign rating Friday by one notch to BBB+ from BBB. In a report, Fitch said the “economic reforms of the labor market, pension system, fiscal framework and financial sector that have been enacted by the authorities since the start of the crisis have improved the longer-term outlook.” Spain was among the European countries hardest hit by the financial crisis. The property market’s collapse in 2008 pushed the economy into recession and the government needed help from other eurozone countries to rescue its banks. Spain’s government said in a statement that it valued the new rating because it was recognition of the government’s commitment to reform. “These reforms will solidify the economic recovery, which will help to contain the deficit and permit net job creation this year,” the statement said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Although unemployment is still near 26 percent, Spain’s economy is out of recession and government borrowing rates have dropped.

Traders work on the floor of the New York Stock Exchange. AP       NEW YORK (AP) – The stock market fell sharply Friday, dragged down by disappointing quarterly results from Amazon and Ford. Escalating tensions between the US and Russia over Ukraine also weighed on the market. Worried investors sold their risky assets and moved into the traditional havens: bonds, gold and stocks that pay high dividends like utilities. The Standard & Poor’s 500 fell 15.21 points, or 0.8 percent, to 1,863.40. The Dow Jones industrial average lost 140.19 points, or 0.9 percent, to 16,361.46 and the Nasdaq composite lost 72.78 points, or 1.8 percent, to 4,075.56. Friday’s sell-off was enough to push the Dow, S&P 500 and Nasdaq into the red for the week. Technology stocks, which have been volatile for the last two months, were once again a hotbed of selling. Amazon, the world’s largest online store, sank $33.32, or 10 percent, to $303.83. Amazon reported late Thursday an increase in first-quarter profit, but the company also said that spending on investments will likely lead to an operating loss in the second quarter. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The retail giant dragged the rest of the technology sector lower, making it one of the worst performing sectors in the S&P 500. Netflix fell more than six percent, Priceline lost five percent, Facebook fell five percent and Twitter lost more than seven percent. Investors have had little patience for companies missing their forecasts this quarter, Read More …

MANILA, Philippines – The Securities and Exchange Commission (SEC), the country’s corporate watchdog, has warned the public against the illegal operations of a lending company. In a public notice, the corporate regulator said Honesty, Unity, Love and Loyalty for Self Reliance Association Inc., while registered with the commission, “is not authorized to engage in the business of lending of money.” “Furthermore, the Bangko Sentral ng Pilipinas certified that the same corporation is not authorized by the Monetary Board to engage in the [lending] activities,” it added. SEC laid out the guidelines before a company can engage in the business of accumulating the savings of member for loans to other members. For instance, at least five but not more than 15 members of a well-defined group may form an association. An association, prior to transacting any business, shall secure a license from the Monetary Board and register with the SEC, the agency said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The SEC has stepped up efforts to warn the public against fraudulent business practices following a large scale investment scam in 2012. In 2012, Pagadian-based Aman Futures Group Philippines Inc. was exposed as a P12-billion investment scam, defrauding thousands of politicians, professionals, businessmen and employees.

MANILA, Philippines – Two Korean-owned coconut product exporters have secured tax perks from the Board of Investments (BOI). According to the BOI, it approved the registration of Coco Davao Inc. and Cocoplus Inc.’s projects with investments worth a total of P130.8 million. Coco Davao’s P125-million project involves the production of coconut water for export to the United States. Coco Davao’s project, located in Sta. Cruz in Davao del Sur would have an annual capacity of 2.16 million liters. Cocoplus’ P5.8 million project, meanwhile, involves the production of coconut fiber and coconut peat. The facility, located in Digos City in Davao del Sur, would have a capacity of 1,757 tons of coco fiber and 2,635 tons of coco peat per year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Cocoplus’ output would be exported to China and South Korea. “Both Coco Davao and Cocoplus Inc. projects are expected to provide a total of 215 jobs when fully operational,” the BOI said. By being registered with the BOI, the companies would be entitled to income tax holidays and other incentives. Firms which engage in activities listed in the Investment Priorities Plan (IPP) prepared by the BOI each year could qualify for incentives from the government. The 2013 IPP has identified agribusiness as a preferred activity and likewise covers export activities. The IPP lists activities being promoted by the government.

MACTAN, Cebu, Philippines – Monetary and fiscal policymakers in the Asian region have cited the need to address the orderly exit of “too big to fail” institutions to minimize the negative impact on their host countries. Masamichi Kono, vice commissioner at Japan’s Financial Services Agency, said in a briefing Friday night that  the Financial Stability Board (FSB) Regional Consultative Group for Asia (RCGA) raised the importance of having an effective resolution for these globally systemically-important banks (SIBs). Kono co-chairs the FSB RCGA with Bangko Sentral ng Pilipinas’ Governor Amando M. Tetangco, Jr. The group was in Cebu last week for their sixth meeting since the establishment of FSB in 2009. “I think there was a common understanding from the last financial crisis and the ongoing global financial issues that there is a need to address the issue of too big to fail institutions or globally SIBs,” Kono said following the conclusion of RCGA meeting. “Like how when those institutions find themselves in difficulty, we should avoid the use of taxpayers fund to bailout those institutions,” he added. Kono stressed that while only China and Japan are home to globally SIBs in Asia, almost all of the countries in the region are host to a number of these too big to fail institutions. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “When they have to be resolved, an orderly resolution which does not endanger… the host country is a necessity,” Kono pointed out. “It’s now being strongly recognized that for Read More …