Philippines well poised to lead Asean

 News
Nov 242016
 
Philippines well poised to lead Asean

Since coming to power in June, Philippine President Rodrigo Duterte has made global headlines, a rarity for national leaders in Southeast Asia. His comments on his country’s relations with major powers – the US, China, Japan and Russia – have been extraordinary for their divergence from conventional wisdom. Now the time has come for him to demonstrate his leadership finesse in representing the region. The Philippines is the incoming chair of the Association of Southeast Asian Nations, succeeding Laos, which has done a good job despite limited resources and modest expectations. In contrast, the Philippines has the most outspoken leader in Asean and expectations are high that it will raise the bloc’s profile to a new level in the year ahead as it takes over the rotating duty at the helm. Adding to this sense is the fact that the chairmanship coincides with the association’s 50th anniversary. Manila has indicated it is ready for the task, even conceiving the sweeping, snappy new theme “Partnership for changes, engaging the world”. READ: Duterte formally accepts PH hosting of Asean summit in 2017 It’s clear that whatever the Philippines has in mind for its tenure as Asean chair will have to take into account the historic importance of this milestone, coming at a time when the region is facing serious challenges. Several agenda items stand out as being the most critical. Firstly, the Philippines will give top priority to making Asean a people-centered, peopled-oriented community. The Asean Economic Community has entered its second Read More …

Putin offered good deal for guns—Duterte

 News
Nov 242016
 
Putin offered good deal for guns—Duterte

Russia has offered to sell rifles to the Philippines at an apparent bargain after a United States senator questioned the country’s planned purchase of guns from America, according to President Duterte who is seeking more robust ties with Moscow. Mr. Duterte had met with Russian President Vladimir Putin made at the Asia-Pacific Economic Cooperation summit in Peru. The Philippines’ planned purchase of assault rifles from the United States has been put under review after Democratic Sen. Ben Cardin questioned the sale amid concerns over human rights violations. Mr. Duterte said the Philippines would explore other potential transactions that offer “better deals and more advantageous terms.” Putin had offered to sell guns to the Philippines, he said. “If the Senate—I forgot, Cardin?—does not want to sell rifles to us, Putin said that you can have, I’ll give you, buy one and take one. Almost like that,” he said in a press briefing upon arrival from Peru and New Zealand. “He said, ‘If you cannot buy arms anywhere, you go to me,’” he added. Upon arrival Wednesday night in Davao, Duterte said he did not discuss any arms deal with Putin during their meeting in Peru. The President, who bristles at criticism of his antidrug war and the killings that have marked it, said he sees no reason to “belabor the point” with Cardin. There are other countries the Philippines can ask for help, he said. But he added that a country should not deprive an ally of key equipment. Mr. Duterte Read More …

Bargain hunters boost share prices

 Economy
Nov 242016
 
Bargain hunters boost share prices

Bargain hunters continued to lift the stock market yesterday, sustaining Wednesday’s gains and reversing the downward trend last Monday and Tuesday. AP Photo/Bullit Marquez MANILA, Philippines – Bargain hunters continued to lift the stock market yesterday, sustaining Wednesday’s gains and reversing the downward trend last Monday and Tuesday. The benchmark Philippine Stock Exchange index (PSEi) grew 36.67 percent to 0.54 percent to finish at 6,873.31, while the broader All Shares index gained 21.54 points or 0.52 percent to finish at 4,170.64. Most indices ended in positive territory led by mining and oil counter which gained 271.06 points or 2.23 percent. Total value turnover reached P6.17 billion. Advancing stocks outnumbered decliners, 113 to 65 while 47 stocks were left unchanged. Analysts said bargain hunting perked up yesterday’s trading session. Among the top gainers during yesterday’s session are Oriental Peninsula Resources (up 17.80 percent to P1.39), Dizon Copper Silver Mines Inc. (up 13.18 percent to close at P12.88), Bogo Medellin Milling  (up 11.11 percent to finish at P100) and Arthaland Corp. (up 10 percent to close at P0.33 percent). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 However, despite the gains, the PSEi remained below the 7,000 mark. In an interview yesterday, Philippine Stock Exchange (PSE) president Hans Sicat said the market remains affected by global volatility. “It’s due to external factors,” Sicat said. Despite the volatility, he expressed optimism that fund raising activity through the local stock market remains a viable option for many companies.

Support our steel industry

 Economy
Nov 242016
 
Support our steel industry

In principle I am for free trade. It makes no sense to protect local industries that have failed to be competitive for decades. Foreign competition encourages domestic industries to become more efficient and this benefits local consumers. We have to avoid rent seeking that protects infant industries that never grow up. This is how the entrenched elite behind these non-competitive local industries use government protectionist policies to abuse domestic consumers. But we must stand up against unfair competition from foreign manufacturers. We must not allow them to threaten the viability of local industries that are showing a lot of promise and are already making headway. Dumping is one example of unfair trade. Dumping happens when imports are priced below reasonable manufacturing cost. China, for instance, subsidizes state owned manufacturers so they can afford to sell below production cost like what is happening in the steel industry. President Duterte has said time and again that he wants a strong steel industry to serve as the cornerstone of our industrialization program. But will his words turn into action in the face of unfair competition from China? The local steel industry is now asking President Duterte to stop smuggling and importation of dumped steel products from China. There has been a surge of rebars imported from China, even if there is sufficient local manufacturing capacity. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Our steel industry is essentially steel rebar manufacturing that is slowly expanding to other products. Local industry capacity is Read More …

Peso breaks 50:$1 barrier

 Economy
Nov 242016
 
Peso breaks 50:$1 barrier

The local currency shed 12 centavos to close at 49.98 from Wednesday’s 49.86 to $1. This was the weakest level since the peso closed at 49.99 to $1 on Nov. 20, 2008 or during the height of the global financial crisis. MANILA, Philippines – The peso briefly breached the 50 to $1 level yesterday, echoing the weakening of the regional currencies amid the release of minutes from a US Fed meeting indicating the agency is poised to raise interest rates next month. The peso opened weak at 49.86 before hitting an intra-day low of 50 to $1. The local currency shed 12 centavos to close at 49.98 from Wednesday’s 49.86 to $1. This was the weakest level since the peso closed at 49.99 to $1 on Nov. 20, 2008 or during the height of the global financial crisis. Trading volume increased 21.4 percent to $437.6 million from Wednesday’s $360.5 million due to strong demand. Finance Secretary Carlos Dominguez said the peso’s downtrend trajectory is an expected reaction of the local currency to the anticipated early rate increase by the US Fed, with other Asian currencies also moving in the same direction. “We are watching the currency movements very closely. We seem to be moving in the same direction as the other currencies. We just want to avoid abrupt changes in the exchange rates,” Dominguez said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 But he added the country’s rock solid macroeconomic fundamentals would enable the domestic economy to survive Read More …

Shakey’s IPO a go, says PSE

 Economy
Nov 242016
 
Shakey’s IPO a go, says PSE

Po Sr. MANILA, Philippines – It’s all systems go for the stock market debut of pizza chain Shakey’s Philippines after the Philippine Stock Exchange (PSE) approved this week the company’s planned initial public offering (IPO), the final requirement for the listing scheduled on Dec. 15. “We already approved it,” PSE president Hans Sicat said yesterday. Earlier, Shakey’s Pizza Asia Ventures Inc (SPAVI), the leading full-service restaurant in the country owned by the Po family, also secured the approval of the Securities and Exchange Commission (SEC), the corporate regulator. SPAVI seeks to raise up to P5.5 billion from the IPO to be used for debt repayment, capital requirements and strategic acquisitions. According to the prospectus filed with the SEC, the company will sell up to 352 million primary and secondary shares, including an over allotment of 46 million shares to cater for extra demand. SPAVI has set a maximum price of P15.58 each with the final price setting date scheduled on Nov. 28. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The offer period will run from Dec. 2 to 8, according to underwriter BDO Capital & Investment Corp. Filipino-Chinese businessman Ricardo Po Sr., the family patriarch, has said the company is proceeding with the listing on Dec. 15 despite the perceived market volatility. “We will proceed with the listing as scheduled. The investors are all interested,” Po told The STAR. SPAVI is majority owned by the Po Family’s Century Pacific Group Inc (CPGI), parent company of Philippine listed Century Read More …

ADB hikes Philippine growth forecasts

 Economy
Nov 242016
 
ADB hikes Philippine growth forecasts

In a briefing yesterday during the Businessworld and Philippine Airlines Asean Regional Forum, ADB country economist Aekopol Chongvilaivan said the reason for the upward revision is the country’s better-than-expected economic growth in the third quarter of the year. MANILA, Philippines – The Asian Development Bank (ADB) has revised upward anew its economic growth projection for the Philippines to 6.8 percent for 2016 and 6.4 percent for 2017. This is ADB’s third revision after a revised 6.4 percent and 6.2 percent economic growth forecast for 2016 and 2017, respectively. The original forecast was six percent for 2016 and 6.1 percent for 2017. In a briefing yesterday during the Businessworld and Philippine Airlines Asean Regional Forum, ADB country economist Aekopol Chongvilaivan said the reason for the upward revision is the country’s better-than-expected economic growth in the third quarter of the year. “Basically, it’s because of the third quarter (performance). Growth is much higher than expected and export performance is much better than expected and this is supported by a weaker peso,” Chongvilaivan said. Exports rose to $5.211 billion in September from $4.960 billion a year ago, according to the Philippine Statistics Authority (PSA). On the other hand, Chongvilaivan said fourth quarter GDP may go down slightly due to the uncertain global economy. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We expect to be slightly going down due to the uncertain global economy so we expect fourth quarter to slow down from the third quarter,” Chongvilaivan said. The Philippine economy grew Read More …

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