PRESIDENT Rodrigo R. Duterte is confident that “the peso will rise again” even though traders expect the local unit to break the P50-a-dollar level in 2017 after the Federal Reserve signaled two to three rate hikes this year.
Jan 022017
Dec 152016
ECONOMIC managers said the government’s spending program will remain unaffected by the Federal Reserve’s decision to raise interest rates, with the move described as highly anticipated and long planned for.
Sep 092013
MANILA, Philippines – The Philippine Stock Exchange index (PSEi) rose 0.38 percent or 22.42 points to 5,997.04 as investors turned optimistic given positive developments overseas. “A discernible shift towards optimism continues to visit upon the market as the week opened,” said Justino Calaycay, an analyst at Accord Capital Equities Corp. “Still, the pace remains rather slow, evidencing a hangover of hesitation ahead of the crucial Federal Reserve meeting two weeks henceforth,” Calaycay said. The markets expects the US Fed to start tapering off its bond buying stimulus program, which has boosted liquidity in the financial markets. Asian bourses were also in the positive territory on the back of news on export growth and steady inflation in China. Japan’s Nikkei 225 rallied 2.48 percent or 344.42 points to 14,205.23 while Hong Kong’s Hang Seng index gained 0.37 percent or 83.75 points to 22,704.97. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Locally, all counters were in the green, led by industrial sector that added 0.69 percent or 63.40 points to 9,303.92. Turnover remained thin at P5.4 billion from P5.37 billion on Friday. Advancers outpaced decliners, 89 to 53, while 32 stocks did not change. “The PSEi made an early foray into and test of the 6,000-mark but continues to fail to hold as value turnover remains light,” Calaycay said.
Aug 052013
BANGKOK — Oil rose above $107 a barrel Monday after a disappointing U.S. jobs report made it more likely the Federal Reserve will continue its stimulus program beyond September. Benchmark crude for September delivery was up 18 cents to $107.12 at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell 95 cents to close at $106.94 a barrel on Friday. U.S. employers added 162,000 jobs in July, which was below expectations. The government also revised down gains for the prior two months when it released its employment figures Friday. Some analysts were expecting the Fed to start reducing its massive economic stimulus program in September. However, the disappointing employment data raised hopes that the Fed might continue its $85 billion a month in government bond purchases until the end of the year. The bond purchases have pushed down interest rates, which makes money available for spending and investment. But the purchases also inject more dollars into the economy, which lowers their value. That tends to push up the price of oil as it becomes more affordable for investors using other currencies. “The U.S. dollar weakness generally is positive for risk assets, gold and other commodities. So that will be a good scenario for the markets, if tapering is delayed,” said Stan Shamu, market strategist at IG in Melbourne, Australia. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Brent crude, traded on the ICE Futures exchange in London, rose 17 cents to $109.12 per Read More …
Jun 262013
SEJONG, South Korea — South Korea raised its growth forecast on Thursday to reflect the boost from government stimulus spending. The finance ministry said in a statement that South Korea’s economy will expand 2.7 percent this year, compared with its 2.3 percent estimate three months ago. South Korea’s parliament approved a $15 billion stimulus plan in May as companies are reluctant to step up investments amid an uncertain global economic outlook. In 2012, South Korea’s economic growth hit its lowest level in three years at just 2 percent. The ministry said the risks that could dent the country’s economy have been reduced compared with three months earlier. But the upward revision does not mean the export-reliant economy is set to enjoy a full-fledged recovery, the finance ministry said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “If you look at the speed of recovery, it is gradual and moderate,” ministry director general Choi Sang-mok told reporters. Exports have improved but continue to be weighed down by the weak yen which has reduced Japan’s demand for South Korean products. Big companies such as Samsung and Hyundai, which dominate South Korea’s economy, are yet to scale up their capital expenditures, indicating that the recovery still largely relies on government stimulus. Another worry for South Korea’s economy is the impending withdrawal of monetary stimulus in the U.S. But Choi said improvement in the U.S. economy could be a positive factor for South Korea’s economy even though financial markets had been rattled by Read More …
Jun 122013
WASHINGTON (AP) — More Americans are quitting their jobs, suggesting many are growing more confident in the job market. The Labor Department said Tuesday that the number of people who quit their jobs in April jumped 7.2 percent to 2.25 million. That’s just below February’s level, which was the highest in 4 ½ years. Overall hiring also picked up in April, though not as dramatically. Employers filled 4.4 million jobs in April, a five- percent increase from March. Hiring fell in March and April’s level was below February’s. The report offered a reminder that the job market is far from healthy. The number of available jobs slipped fell three percent to a seasonally adjusted 3.75 million. Openings had reached a five-year high in February and remain nearly seven percent higher than a year ago. Still, the growth in hiring and quits provides more evidence of a dynamic job market that is making slow but steady strides. It follows Friday’s May employment report, which showed the economy added a net 175,000 net jobs last month. That’s roughly in line with the average monthly gain over the past two years. Most workers quit their jobs when they have a new position or feel confident that they can find one quickly. And when they do, it opens up more opportunities for other Americans, including the unemployed. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Janet Yellen, vice chair of the Federal Reserve, has said the Fed is monitoring data on quits and Read More …
May 302013
MANILA, Philippines (Xinhua) – The Philippine stock market suffered a huge loss today despite a better-than-expected growth of the Philippine economy in the first quarter. The bellwether Philippine Stock Exchange index dived by 3.81 percent or 275.22 points to 6,953.33. The broader all-share index slipped by 3.02 percent or 133.99 points to 4,298.18. Trading volume reached 1.9 billion shares worth P16.86 billion ($397.26 million) with 160 stocks declining, 15 advancing, and 38 were unchanged. All six counters were down. Analyst Justino Calaycay of Accord Capital Equities Corp. said a string of negative news overseas pulled down the Philippine stock market on Thursday, overshadowing the positive gross domestic output (GDP) of the country. “Concerns over the U.S. Federal Reserve’s stimulus stance and questions over European and China’s growth added dark clouds over the horizon,” Calaycay said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Overnight, US stocks retreated off a record high on fears that improving economic numbers may prompt the Federal Reserve to step on the stimulus brakes. European shares were likewise down with investors reading off a similar note, in addition to International Monetary Fund’s outlook of a slower growth for China, the world’s second largest economy. The international, multilateral lending institution project China to grow at less than 8 percent this year. These developments overshadowed the news of a higher than expected growth rate. The National Statistical Coordination Board reported Thursday that an upbeat business and consumer sentiment, increased public spending and a robust manufacturing and construction Read More …
May 212013
MANILA, Philippines – A technical rebound lifted share prices yesterday, allowing the bellwether index to claw back to the 7,300 as it snapped a three-day skid. The Philippine Stock Exchange index (PSEi) rebounded 0.72 percent or 52.20 points to 7,327.58, while the broader all shares index gained 0.38 percent or 16.90 points to 4,506.74. “Technical rebound for yesterday following corrections of the PSEi in prior sessions,” Freya Natividad, analyst at online brokerage firm 2TradeAsia.com. The local market bucked the trend in Wall Street, which closed lower as investors opted to stay on the sidelines ahead of more information regarding the Federal Reserve’s economic stimulus program. The Dow Jones industrial average lost 0.1 percent or 19.12 points to 15,335.28 while the broader Standard & Poor’s 500 index shed 0.1 percent or 1.18 points to 1,666.29. Locally, most subindices were in the green, led by property firms that rallied 1.94 percent or 57.89 points to 3,047.63 while mining and oil was again a laggard, falling 0.8 percent or 140.88 points to 17,453.59. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Decliners outplayed advancers, 100 to 70, while 49 stocks did not change. Natividad said there was no good news to push share prices higher, with investors opting to cash in on recent gains. Turnover value improved to P9.72 billion from P8.72 billion on Tuesday. Top-traded Ayala Land Inc. rallied 2.75 percent or 95 centavos to P35.50 given news that the Securities and Exchange Commission already finalized its foreign ownership cap rules.
Mar 032013
WASHINGTON (AP) — Chairman Ben Bernanke is standing by the Federal Reserve’s low interest rate policies, cautioning that any move to raise rates prematurely could derail a still-modest economic recovery. Bernanke also sought to calm fears that super-low rates risk igniting inflation or rattling investors, during a speech late Friday in San Francisco to an economic conference sponsored by the San Francisco Federal Reserve Bank. The central bank’s low-rate policies are intended to encourage borrowing and spending to boost the economy. Higher rates would make borrowing more expensive. Bernanke said the Fed’s policies mirror what other central banks around the world are doing. “Long-term interest rates in the major industrial countries are low for a good reason: Inflation is low and stable and, given expectations of weak growth, expected real short rates are low,” he said. “Premature rate increases would carry a high risk of short-circuiting the recovery, possibly leading — ironically enough — to an even longer period of low long-term rates,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 His comments amplified testimony he gave to Congress this week. Critics, including some Fed regional bank presidents, have expressed concerns that the Fed may be raising the risk of inflation through its purchases of Treasury bonds and mortgage-backed securities. As he did in his appearance before House and Senate committees this week, Bernanke sought to provide reassurance that the central bank is closely monitoring developments in financial markets to guard against such risks. He said 2010 Read More …