Obama on mission to quiet skeptics of US policy in Asia

 General
Apr 212014
 
Obama on mission to quiet skeptics of US policy in Asia

President Barack Obama. AP WASHINGTON—Five years after refashioning US foreign policy to emphasize Asia, President Barack Obama will face questions over his strategy’s content and staying power in the region this week. Obama will counter the impression that the carnage in Syria and the East-West showdown over Ukraine have dragged his administration’s attention elsewhere. He will argue in Japan, South Korea, Malaysia and the Philippines that the “rebalancing” policy—of withdrawing US military, economic and human resources from Middle East wars and deploying them to emerging Asia—remains on track. Obama will embark on his fifth visit as president to Asia when he lands in Japan on Wednesday. He will be in Manila April 28 and 29. Obama’s eight-day Asia swing, the first of two to the region this year, will make up for the embarrassment of skipping regional summits in November because of domestic political battles. Counterweight to China Obama seeks progress in tough talks with Japan over the proposed Trans-Pacific Partnership (TPP) trade deal, hung up over auto and agricultural market access. The TPP would cement Obama’s legacy in Asia, but talks on the 12-nation pact lost momentum last year. Obama must also walk a fine line, bolstering alliances with nations, which see the United States as a counterweight to powerful China, while avoiding angering Beijing. He will also press on with efforts to ease the dispute between US allies South Korea and Japan, insist North Korea will get no reward for belligerence and complete a revival of US relations Read More …

Index surges past 6,700-pt level

 General
Apr 212014
 
Index surges past 6,700-pt level

MANILA, Philippines – Positive developments abroad during the Lenten holidays carried the benchmark index past the 6,700 level for the first time this year. The Philippine Stock Exchange index (PSEi) climbed 1.44 percent or 96.33 points to 6,767.51, its best since closing at 6,800.11 on July 25, 2013. The broader all shares index jumped 1.26 percent or 50.74 points to 4,063.77. “A favorable newsfront over an extended Lenten weekend delivered positive impetus to this week’s opening trades, extending the PSEi’s winning run to a third day and validating the 6,570 to 6,600 support band,” said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp. “This is a positive reaction to international markets, which strongly moved up over the long weekend and Lenten break due to positive economic data in the US,” Nisha S. Alicer, research strategist at DA Market Securities, said in a text message. For instance, tensions in the Ukraine eased following a pact reached by the Western allies and Russia, Calaycay said, adding that positive numbers emerged from the US on the jobs and manufacturing fronts. In contrast, Asian markets lacked buying leads and closed silently yesterday. Japan’s Nikkei 225 slightly fell 0.03 percent or 3.89 points to 14,512.38. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In the local scene, all counters ended in positive territory, paced by the service sector that rallied 2.22 percent or 43.69 points to 2,014.24 while property firms surged 2.21 percent or 57.59 points to 2,663.10. “Locally, we’re getting positive Read More …

Philrealty in the black for second straight year

 Economy
Apr 212014
 
Philrealty in the black for second straight year

MANILA, Philippines – Listed real estate firm Philippine Realty Corp., fresh from exiting a court-assisted corporate rehabilitation, has recorded its second consecutive year in the black. In a regulatory filing, Philrealty said its net income hit P39.35 million last year, up from P4.22 million in 2012 and a reversal of the  P212.6-million net loss in 2011. Income from rent, real estate sales, management fees, interest income and commission sank 23 percent to P364.27 million from P475.22 million in 2012. “Sales of Skyline Tower slowed down as fewer units became available to buyers while new sales were booked on sale of Icon Plaza units which is 74.28 percent completed as of yearend,” Philrealty said. Rental income of subsidiary PRHC Property Managers Inc. improved due to escalation in rental rate, the firm said. However, Philrealty said its costs and expenses eased at a faster pace to P325.59 million, down 32 percent from P482.74 million a year ago. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Reeling under debt for 12 years, the property firm exited a corporate rehabilitation program early this month and committed to capitalize on a resurgent real estate market. To regain its prominence as a leading high-end property developer, Philrealty is fasttracking the completion of the second of five towers to rise at the P250-billion Andrea North in New Manila, Quezon City. The company needs to raise P700 million to complete construction of Sky Villas, which will offer about 108 units in 31 floors and targeted for turnover Read More …

AVID sales up 13% in 1st qtr

 Economy
Apr 212014
 
AVID sales up 13% in 1st qtr

MANILA, Philippines – The country’s vehicle importers achieved a 13 percent growth in sales in the first quarter compared to a year ago amid strong performance of both the passenger car (PC) and light commercial vehicle (LCV) segments. In a statement, the Association of Vehicle Importers and Distributors, Inc. (AVID) said it sold 9,055 units in the first quarter, up from the 7,990 units sold in the same period last year. The group’s PC sales rose 13 percent to 4,558 units as of end-March from the 4,016 units sold in the comparable period in 2013. LCV sales also posted a 13 percent increase to 4,497 units in the January to March period compared to the 3,974 units sold in the same period in the previous year. For the month of March alone, total sales of the AVID reached 3,189 units, 5.35 percent higher than the 3,027 units sold in the same month last year. PC sales however, declined 1.51 percent to 1,568 units in March from 1,592 units sold in the same month a year ago. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 LCV sales climbed 12.96 percent to 1,621 units last month from the 1,435 units sold in March 2013. Compared to February’s 2,675 units, the AVID’s total sales in March posted a 19 percent uptick. AVID is confident the positive sales performance in the first three months of the year would be sustained for the rest of the year.  “With AVID finishing the Q1 (first quarter) Read More …

Century pegs IPO price at P13.75

 Economy
Apr 212014
 
Century pegs IPO price at P13.75

MANILA, Philippines – Century Pacific Food Inc. of the Po family has pegged the selling price of its shares at P13.75, the upper end of the indicative price range. The country’s largest canned goods producer stands to raise P3.16 billion in the second initial public offering (IPO) this year. In a text message, Eduardo V. Francisco, president of underwriter BDO Capital & Investment Corp., said the final offer price is near at the high end of the P12.50 – P14.50 target. Century Pacific will raise P3.157 billion in fresh capital from the sale of 229.654 million shares from April 23 to 29. The company’s shares will debut on the main board of the Philippine Stock Exchange on May 6. Proceeds of the IPO will be used to pay short-term obligations, complete a tin can manufacturing factory and dairy mix plant facility in Taguig, and support general working capital given an intensified marketing and sales initiative or possible acquisition. Nisha S. Alicer, research strategist at DA Market Securities, said Century Pacific is a value stock, with the P12.50 P14.50 price range representing a 18.6x-21.9x 2014 price-to-earnings ratio, lower than the industry average of 22.9x. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Century Pacific is banking on its market leadership in the consumer-based Philippine economy, and multi-category, multi-brand product portfolio with a strong record of product innovation and successful new product introduction. The company also has a “multi-pronged growth strategy through cost improvement, expansion of distribution network and achieving economies Read More …

Phl payments position swings to $336-M deficit in March

 General
Apr 212014
 
Phl payments position swings to $336-M deficit in March

MANILA, Philippines – The country’s balance of payments position swung to a deficit in March following a recovery in February, the Bangko Sentral ng Pilipinas reported yesterday. “The BOP deficit for March was largely due to foreign-currency debt repayments of the National Government and BSP’s foreign-exchange operations,” BSP Governor Amando M. Tetangco Jr. said in a text message to reporters. The deficit stood at $336 million in March, a turnaround from the $452-million surplus recorded in the same month last year. The latest figure was also a reversal of the $345-million surplus recorded in February. The BOP shows a summary of a country’s transactions with the rest of the world. A deficit in the BOP cuts the country’s foreign exchange reserve, which serves as a cushion against external shocks. The March level brought the first-quarter BOP deficit to $4.471 billion, a reversal of the $1.537-billion surplus in the same period last year. “The cumulative deficit for the first quarter stemmed principally from net outflows in foreign portfolio investments in market reaction to uncertainty over the pace of tapering of the Fed’s quantitative easing measures,” Tetangco said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He added that a higher balance of trade deficit also contributed to the BOP deficit during the quarter. The US Federal Reserve in January has started scaling back its monthly massive asset purchases following positive US economic data. This has caused volatility in global financial markets because when fully taken out will result in higher Read More …

Gov’t releases P5.21 B for agri component of Yolanda rehab effort

 Economy
Apr 212014
 
Gov’t releases P5.21 B for agri component of Yolanda rehab effort

MANILA, Philippines – The government has so far released a total of P5.21 billion for the agricultural component of the recovery and reconstruction program for areas devastated by Typhoon Yolanda. The Department of Budget and Management turned over P1.05 billion to the Department of Agriculture to support various initiatives under the Reconstruction Assistance on Yolanda (RAY) program. The money will allow the DA to implement clearing and desilting operations in Yolanda-stricken regions, as well as provide farm tools, seeds, tractors, fertilizers, and farm machinery fuel subsidies to farmers in Regions IV-B (MIMAROPA), V (Bicol Region), VI (Western Visayas), VII (Central Visayas), and IX (Zamboanga Peninsula). “Although it’s been six months since Yolanda hit the country, several communities in the Visayas and Mindanao are still in the process of recovering from the devastation. Farmers were especially hard-hit, as the super typhoon laid waste to vast swaths of agricultural land,” DBM Secretary Florencio “Butch” Abad said. According to the DA, damages to the agriculture sector reached P31.1 billion as of March 2014. This includes production losses of P27.07 billion in crops, fisheries, and livestock, as well as infrastructure losses (including irrigation systems and facilities) of P4.06 billion. “We know that there is much work to be done, however, in restoring normalcy and economic stability in agricultural communities destroyed by Yolanda. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Through RAY (Reconstruction Assistance on Yolanda) the administration can mobilize the necessary post-disaster aid to affected regions to complement our disaster preparation initiatives,” Read More …

Experts say operating ratio of Batangas port remains low

 Economy
Apr 212014
 
Experts say operating ratio of Batangas port remains low

MANILA, Philippines – An expert commissioned by the Japan International Cooperation Agency (JICA) said the operating ratio of the Batangas Container Terminal being considered as alternative to the Port of Manila amid the truck ban imposed by the city government of Manila remained low. In a report, Ryujiro Sasao, external evaluator of IC Net Ltd., said the volume of container cargo to be handled by Batangas Port has fell short of the target volume since the completion of the project in March of 2010. “The operating ratio of the container terminal constructed by this project remains low, falling short of the target volume of container cargo to be handled. For this reason, the project has shown only an extremely limited effect on local employment and the economic growth of local businesses, thus its effectiveness and impact is low,” he said. He also pointed out that the number of container ships servicing the Batangas Port is only one ship a week. “Currently, the number of container ships scheduled for service at Batangas Port sits at only one ship per week,” he added. The review puts into question the supposed capability of the Batangas Port to provide an alternative to the busy port of Manila. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 According to the assessment the start of full-scale operations at Batangas Port was significantly delayed beyond the original plan of March 2002 to December 2007 due to prolonged land acquisition and resettlement. “Although the project cost was within Read More …

BSP keeps inflation targets

 Economy
Apr 212014
 
BSP keeps inflation targets

MANILA, Philippines – The government has kept its inflation targets for this year until 2016 following an inter-agency meeting, the Bangko Sentral ng Pilipinas said yesterday. In a statement, the central bank said inflation targets have been maintained at three to five percent for this year, and at two to four percent for both 2015 and 2016. “Based on the most recent assessment of current inflation developments, evolving economic and financial trends as well as indicators of the public’s inflation expectations and the BSP’s emerging forecasts, the current (three to five percent) target for 2014 of the government remains appropriate for the Philippine economy,” the central bank said. “The government also decided to maintain the medium-term inflation target of (two to four percent) for 2015 – 2016 as it continues to be consistent with the country’s current inflation dynamics and outlook for the next couple of years and the expected higher potential capacity under a low inflation environment,” the BSP continued. The 2014 inflation target was first announced in 2010, while the 2015 to 2016 targets were announced in 2012. The DBCC itself is made up of the BSP governor, the secretaries of the departments of finance and budget and management, the Socioeconomic Planning secretary, and the executive secretary. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The inter-agency committee is tasked to set the targets and assumptions of macroeconomic fundamentals including the gross domestic product, foreign-exchange rate, and trade data, among others. The economy grew by a faster-than-expected Read More …

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