usd and usd: June 2013

Sunday, June 30, 2013

Nokia buys network operations from Siemens

1:50 pm | Monday, July 1st, 2013

AP FILE PHOTO

HELSINKI – Nokia said it would buy Siemens’ half of their joint network operations in a €1.7 billion ($2.22 billion) deal.

The Finnish company said that the transaction, to be completed during the third quarter this year, means that the joint venture Nokia Siemens Networks would become a wholly owned subsidiary of Nokia Corp.

Nokia CEO Stephen Elop said Monday that the network operations had improved its financial performance, and progress in high-speed data provides “an attractive growth opportunity.”

Nokia, once the dominant cellphone maker, is struggling in the smartphone market against Samsung, Apple’s iPhone and handsets that use Google’s Android software as well as against Asian manufacturers making cheaper handsets.

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Tags: Business , Nokia , Siemens , technology

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Dollar extends gains in Asian trade

Agence France-Presse

11:38 am | Monday, July 1st, 2013

AFP FILE PHOTO

TOKYO – The dollar strengthened against the yen in Asia after a senior US Federal Reserve official said a winding down of the bank’s massive asset purchases could start within months.

In morning Tokyo trade, the greenback fetched 99.30 yen from 99.11 yen in New York on Friday.

Fed board member Jeremy Stein suggested in a speech in New York on Friday that the central bank could make a decision to begin slowing its stimulus programme within three months.

Stein, a member of the Fed’s policy committee, cited September as a possible start time for a wind down, saying accumulated economic data for the past year, and not just the most recent figures, would be taken into account.

The dollar is expected to benefit when the Fed eventually begins to reel in the programme, which it says will happen when the economy is able to stand on its own feet.

Comments from other Fed officials last week pointed to a longer timeframe. The easy monetary policy has been credited with boosting global equity markets.

Also in focus is the Bank of Japan’s quarterly business confidence survey, which showed sentiment jumped in the quarter to June, sitting in positive territory for the first time since September 2011.

The result comes days after figures showed Japanese factories put in an unexpectedly strong performance in May, supplying fresh evidence that Tokyo’s huge drive to boost growth appeared to be taking hold.

The euro rose to 129.28 yen from 128.99 in New York, while it was also at $1.3019, up from $1.3013.

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Short URL: http://business.inquirer.net/?p=129801

Tags: currencies , economy , Foreign Exchange , Tokyo , Trade

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Oil prices down in Asia on weak China data

Agence France-Presse

11:33 am | Monday, July 1st, 2013

AP FILE PHOTO

SINGAPORE – Oil prices were down in Asia on Monday as weak Chinese manufacturing activity fuelled concerns over energy demand in the world’s second biggest economy, analysts said.

New York’s main contract, West Texas Intermediate light sweet crude for delivery in August, was down 38 cents to $96.18 a barrel and Brent North Sea crude for August shed 44 cents to $101.72 in morning trade.

China’s official purchasing managers index came in at 50.1 in June, down from 50.8 in May.

A reading above 50 indicates growth and anything below points to contraction.

“The poorer Chinese PMI data are fuelling concerns about oil demand in China and putting downward pressure on prices,” Victor Shum, managing director at IHS Purvin and Gertz in Singapore, told AFP.

“The market sentiment remains bearish as all the recent data out of China point to a slowdown in the Chinese economy,” he said.

The results come amid a recent liquidity crisis in the energy-guzzling Asian giant, which had caused lenders to put the brakes on loans and added pressure on oil prices.

The People’s Bank of China said last week it had made money available to some firms in a bid to prevent a cash crunch that had sent shares into a tailspin.

China is the world’s biggest energy-consuming nation and the health of its economy is closely watched by oil traders.

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Short URL: http://business.inquirer.net/?p=129797

Tags: Asia , China , economy , Energy , oil

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Japan business confidence up after almost 2 years

Associated Press

11:13 am | Monday, July 1st, 2013

AFP FILE PHOTO

TOKYO — Business sentiment among major Japanese manufacturers turned positive for the first time in nearly two years, a signal that companies are reacting positively to the weaker yen and Prime Minister Shinzo Abe’s policies to revive the stagnant economy.

The Bank of Japan’s closely-watched quarterly “tankan” survey for June showed that the index for major manufacturers rose to positive 4 from negative 8 in March. The survey released Monday was the first to be higher than zero since September 2011. A positive reading means more companies are optimistic than pessimistic.

The index for major non-manufacturers rose to 12 from 6 in the last survey.

The “tankan” also showed that major manufacturers plan to increase capital spending by 6.7 percent in the current fiscal year, while non-manufacturers plan to increase investment by 4.9 percent.

The improved confidence comes amid a weakening yen, which boosts overseas income for Japan’s key exporters, and a series of aggressive economic policies — monetary easing and boosting public workers spending — implemented by Abe since he took office in late December.

The upbeat numbers come after Japan said Friday that industrial production had risen 2 percent in May from April, the fourth monthly increase, while core consumer prices had stopped falling for the first time in seven months. For years, Japan has been dogged by deflation, or falling prices, which can drag on economic growth, and the Bank of Japan has set a goal of 2 percent inflation within the next two years.

Japan’s economy grew at a 4.1 percent annual pace in the first quarter.

The stock market has risen sharply this year, but share prices have fallen back some over the last month amid skepticism about Abe’s plans to enact structural reforms in the economy and a belief that prices rose too far too fast.

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Short URL: http://business.inquirer.net/?p=129787

Tags: Business , economy , Japan , News , Shinzo Abe

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PH risks losing out on renewables—report

By Kristine Felisse Mangunay

Philippine Daily Inquirer

5:07 am | Monday, July 1st, 2013

MANILA, Philippines—The lack of mobilization of stakeholders, long renewable energy permit application processes and the lack of technical infrastructure are some of the issues the government has to address if it wants to meet the country’s renewable energy goals, a report released recently said.

The report titled “Meeting Renewable Energy Targets: Global lessons from the road to implementation” said that while the government had “long-term energy plan targets” through its National Renewable Energy Program, “external opposition” to several policy mechanisms was delaying the country’s renewable energy development process.

The National Renewable Energy Program aims to triple the country’s renewable energy capacity base by 2030.

Prepared by the World Wildlife Fund in collaboration with the think tank World Resources Institute (WRI), the report was done to show what countries could do to meet their renewable energy targets, said Athena Ballesteros, WRI international financial flows and environment project manager.

Apart from the Philippines, the other case studies included in the report were China, India, Germany, Morocco, South Africa and Spain.

A case in point, the report said, was the opposition of “project developers” and “consumer organizations”—who fear they would shoulder additional charges in electricity—to the feed-in tariff program. The tariff program seeks to ensure that renewable energy companies get additional money for every kilowatt of clean power they sell.

Apart from delaying the renewable energy development process, the opposition, compounded with what the report described as the Energy Regulatory Commission’s weak capacity, put the country at risk of losing “over $2.5 billion in potential renewable energy investments,” the report said.

“Substantial project implementation bottlenecks related to lack of institutional coordination … are also putting serious (constraints) on renewable energy development in the Philippines,” it said.

“Delays in policy decisions have mostly been affected by disagreements within governments and the opposition of various influential groups…,” it quoted other literature as saying.

According to the report, the “long and convoluted” process a new company that wishes to sell renewable energy had to undergo in the country also “discourages many possible investors and delays projects.”

The report said there was a need to “establish a One-Stop Shop” that would take care of and “streamline all renewable energy applications.”

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Tags: Energy , Philippines , renewable energy , renewable energy targets

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Economy weathers financial market turmoil

BSP exec says PH better equipped to deal with crisis

By Paolo G. Montecillo

Philippine Daily Inquirer

8:41 pm | Sunday, June 30th, 2013

BSP Deputy Governor Diwa Guinigundo. INQUIRER file photo

The recent shock to the country’s financial markets and the little effect it had on the real economy showed that the Philippines is much better equipped to deal with crisis-related capital flight, according to the Bangko Sentral ng Pilipinas.

“Our outlook hasn’t changed. We continue to see a good turnout in economic performance down the road,” BSP Deputy Governor Diwa C. Guinigundo said.

He was commenting on the recent release of data from the United States that showed the world’s largest economy grew at a slower-than-expected pace in the first quarter of 2013.

This comes shortly after signals by the US Federal Reserve that it would trim down its $85-billion bond buying program that was originally launched to prop up the American economy.

The signals by the US Fed earlier sent local equity prices crashing, wiping out all gains made by the local bourse since the start of the year. The peso also fell to its lowest point in more than a year as foreign investors pulled out of emerging markets to return to traditional safe havens.

Guinigundo said that despite the volatility in financial markets, the country’s foreign exchange income—linked to remittances from migrant workers and business process outsourcing (BPO) revenues—kept the country’s external payments position robust.

“Whenever there are capital outflows, normally one would see tightness in the market, liquidity and credit. But we didn’t experience that,” he said.

“Instead, it is clear that in the Philippines, we have both dollar and peso liquidity and it remains ample and consistent with what is required to sustain the economy,” he said.

This differed from the country’s situation during the Asian financial crisis in the late 1990s, wherein capital flight from emerging markets made it harder for businesses and households to take out loans, choking economic activity in the Philippines and across the region.

Guinigundo also allayed the analysts’ fears of the economy possibly overheating, following the release of data last week that showed domestic liquidity—the amount of money in the system—grew at its fastest pace in six years.

The fast growth in liquidity means more money in each person’s hands, leading to high inflation rates that can eventually choke economic activity.

“We believe overheating is a remote issue because the potential capacity of the economy has gone up. In addition, productivity has improved while efficiency appears to have climbed in recent years,” he said.

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Tags: Bangko Sentral ng Pilipinas , Business , economy , News

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Aquino administration renews fiscal incentives rationalization

By Michelle V. Remo

Philippine Daily Inquirer

8:39 pm | Sunday, June 30th, 2013

With the enactment of the sin tax reform and reproductive health measures into law, the Aquino administration now wants legislators to pass in the coming 16th Congress another controversial bill that has been pending for 15 years.

The fiscal incentives rationalization bill has been facing strong opposition due to its provisions, particularly the lifting of the tax- and duty-free incentives of several industries.

“The reproductive health and sin tax reform laws were 15 years in the making. Now, we are hoping Congress [will] finally pass the fiscal incentives rationalization bill that has also been pending for about 15 years,” Internal Revenue Commissioner Kim Henares said last week.

The bill has been certified a priority measure by the Aquino administration’s economic team. Finance Secretary Cesar Purisima earlier said that the tax perks granted to industries that could stay viable even without the incentives should be lifted to boost government revenues.

Two of the industries that should no longer be granted income tax holidays are low-cost housing development and mining exploration, Henares told the Inquirer.

Henares said that, according to the law, a low-cost house is one that is priced at P3 million and below. Based on the hefty price tag, the houses should not be considered “low-cost” and developers should not be entitled to incentives, she explained, citing the government’s potential revenue loss.

“Why give incentives to the developer? A better measure is to give subsidies directly to the poor,” she suggested.

On mining, Henares said the government should no longer grant income tax holidays to companies engaged in exploration. She said the country’s rich natural resources are incentive enough, and mining companies in the Philippines can stay profitable even without the tax perks.

The BIR and its head agency, the Department of Finance, said the tax incentives granted to various industries continued to weigh down the country’s tax effort.

A closely watched indicator of a country’s credit worthiness, tax effort is the ratio between the government’s collection of taxes and import duties and the economy’s gross domestic product.

Ideally, growth in tax collection should at least match the economic growth pace. However, this is not the case in the Philippines because many profitable industries do not pay the proper taxes to the government, Henares said.

The DOF earlier reported that the tax effort stood at 11.9 percent in the first quarter, down from the 12.5 percent reported in the same period last year. The Philippines’ tax effort is lower than those of many countries with similar credit ratings.

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Tags: Business , Kim Henares , News , reproductive health , sin tax reform

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Cautious trading seen

Philippine Daily Inquirer

8:37 pm | Sunday, June 30th, 2013

After a roller-coaster ride last week, local stocks are seen to trade with caution this week and enter the consolidation phase before resuming an interrupted upswing.

Despite a dip into “bear territory” earlier last week, gains in the last three trading days allowed the main-share Philippine Stock Exchange index to rise by 283.11 points or 4.5 percent, its first weekly gain in more than a month.

“The recent gains may be convincing to return and buy bargain issues again. However, there is a risk that this might be a technical rebound. Notice the gaps made by some issues upon their opening during the past three days,” said AB Capital Securities analyst Maria Arlysa Narciso. “What we are looking for in particular is a level of consolidation where an issue or the index itself forms a strong support after deep and successive declines.”

AB Capital Securities is looking at a possible consolidation at 6,115 to 6,330 with 6,000 seen as a main support. “Any drop below this major support level would confirm the dreaded long way down to 5,500 if we purely rely on technical valuation,” she said.

Philippine Stock Exchange president Hans Sicat told reporters Friday night that the market’s “comfort level after last Monday and Tuesday certainly has increased.” The recovery seen in the last few days across global markets, Sicat said, was due to the fact that investors realized they had overreacted to US Federal Reserve Chair Ben Bernanke’s statements about the tapering of quantitative easing or the aggressive bond-buyback activities that injected a lot of liquidity across global markets.

The PSEi entered the bear market territory on Tuesday last week after declining 21 percent from its peak of around 7,400 in mid-May.

“It’s kind of funny because when you think about it, when the Fed mentioned they will be looking at data and as data gets better, they will think about tapering, everybody interpreted that they will do it tomorrow,” Sicat said, leading a scramble for the exit door. Doris C. Dumlao

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Tags: Business , economy , Investment , money , News , Philippine Stock Exchange

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As debt declines, PH gains more financial clout

Ratio of obligations to GDP better than int’l standard

By Michelle V. Remo

Philippine Daily Inquirer

8:36 pm | Sunday, June 30th, 2013

The Philippines’ capability to service its debts has significantly improved, with the government’s outstanding obligations falling below the international benchmark—set at 50 percent of gross domestic product (GDP)—for the first time since the Asian financial crisis.

This was reported by National Treasurer Rosalia de Leon, who said that updated figures showed the government’s outstanding debt, estimated at P5.4 trillion, stood at only 40 percent of GDP at the end of 2012.

It was the first time since the Asian financial crisis in the late 1990s that the Philippine government’s debt-to-GDP ratio fell below 50 percent, which is a known benchmark for manageability.

The figure peaked at 74.4 percent in 2004, when the country was believed to have almost officially hit a fiscal crisis due to revenue collection problems and bloated spending.

Tax reforms, including the increase in the value-added tax rate, were credited for helping reverse the trend of a ballooning debt burden.

“Speaking of government finances, it is indeed a source of strength today,” De Leon said.

She added that another encouraging fact was that the government’s foreign currency-denominated debt stood at only 23.6 percent of GDP, which was lower than those of other emerging markets and advanced economies.

She said the manageability of the Philippine government’s debt has made the country less susceptible to external shocks.

“This relatively low level of foreign currency debt has reduced the impact of the volatile peso, which saw a deprecation of 5.6 percent in just a few weeks,” she said.

The peso started the year at the 41-to-a-dollar territory, but now hovers in the 43 level following the recent flight of foreign portfolio funds from emerging markets. The capital flight, which pushed emerging market currencies and stocks down, was blamed on speculation that the US Federal Reserve will soon conclude its stimulus program, thus ending the era of easy money.

Currency depreciation tends to increase a government’s debt in local-currency terms. But in the case of the Philippines, De Leon said, any adverse impact of the peso’s depreciation on government finances was not expected to be significant because foreign debt was less than the domestic obligations and the relatively low foreign currency-denominated debt-to-GDP ratio.

Debt ratios are closely watched economic indicators.

The Philippine government’s much improved fiscal situation compared with how it was in the early 2000s is credited for helping the country obtain investment ratings.

Earlier this year, Fitch Ratings and Standard & Poor’s upgraded their ratings for the Philippines by a notch from BB+ to the minimum investment grade of BBB-.

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Tags: Asian financial crisis , Business , Gross Domestic Product , News , PH debt servicing

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Coffee farm to rise in ‘basi’ capital of Ilocos

P400-M Arabica plantation expected to boost exports

By Leilanie Adriano

Inquirer Northern Luzon

8:36 pm | Sunday, June 30th, 2013

PIDDIG, Ilocos Norte—Coffee will soon be brewing in this province’s basi (sugarcane wine) capital.

An upland area of Piddig covered with pine trees will soon become home to a proposed 1,000-hectare arabica coffee plantation that is expected to boost tourism and exports in the country.

Pierre Yves Cote, director of Rocky Mountain Arabica Coffee Co. (RMACC), a leading producer and exporter of arabica coffee in the Philippines, said his company would put up a modern eco-friendly coffee plantation and milling center here.

In 2009, RMACC launched its first coffee plantation in Tuba, Benguet. Now, it maintains 20 plantations all over the country.

RMACC has been supplying quality grade coffee to at least 200 supermarkets and 150 hotels and restaurants in the Philippines, Canada and the United States.

Cote said at least 85 percent of coffee supply in the Philippines, or 138 million kilograms worth P6 billion, is imported from Vietnam every year.

“The Philippines is producing only 20 million kilograms, so it is making Vietnam farmers very rich while our farmers remain poor. This is totally unacceptable. So, we are inviting local investors to have a share of the pie. We can share our technology, our modern plantation and milling technology,” he said.

Piddig Mayor Eduardo Guillen said the local government is eyeing at least 1,000 hectares of forest land in Sitio Lammin as site of the coffee plantation. The officials hopes that the project will create jobs and business opportunities for residents.

Lammin is part of an ancestral domain of the Isneg.

Cote said the plantation could generate at least 5,000 jobs, excluding part-time jobs during the peak seasons of planting, harvesting, grading and processing of coffee.

Since coffee grows well under the shade of trees, Cote assured residents that no tree would be cut once the project is implemented.

Guillen said that he is confident that the local government of Carasi and the Department of Environment and Natural Resources (DENR), Department of Agrarian Reform (DAR), Department of Agriculture (DA) and the Mariano Marcos State University (MMSU) would support RMACC and Piddig in the project.

Piddig is 18 kilometers from the Laoag International Airport in the capital Laoag City. The project site is about 16 kilometers from the Piddig town proper.

“This makes the mineral-rich soil very good for investment because of its proximity to the Laoag airport,” said Cote, citing the good access road and high elevation suited for coffee trees.

The project needs an initial capital of P12 million for the propagation of seedlings, labor and organic fertilizer within the next two months.

The initial planting is scheduled at the onset of the rainy season in 2014.

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Tags: Business , coffee , economy , Export , News

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Italian astrophysicist Margherita Hack dies at 91

Associated Press

7:03 am | Sunday, June 30th, 2013

Margherita Hack. CONTRIBUTED PHOTO

ROME— Margherita Hack, an astrophysicist who explained her research on the stars in plain language for the public and who championed civil rights in her native Italy, died on Saturday in the Adriatic Sea town of Trieste, where she had headed an astronomical observatory. She was 91.

President Giorgio Napolitano’s condolence message hailed her as a “high-level personality in the world of scientific culture.”

“At the same time, she represented a strong example of civil passion, leaving a noble fingerprint in public debate and in the dialogue with citizens,” Napolitano said.

The Italian news agency ANSA quoted family friend Marinella Chirico as saying Hack died in a hospital after being treated for heart problems.

Hack headed the observatory in Trieste, the first woman to hold that post, from 1964 to 1987, and was a popular and frequent commentator in Italian media about discoveries in astronomy and physics.

The current director of the observatory, Stefano Borgani, told Sky TG24 TV that Hack was one of the first astronomers to “have the intuition” that the future of astronomical observation lay in using space satellites.

An atheist who decried Vatican influence on Italian politicians, Hack helped fight a successful battle to legalize abortion in Italy. She unsuccessfully lobbied for the right to euthanasia and also championed gay rights. Among her victories was a campaign against construction of nuclear reactors in Italy.

A vegetarian since childhood, she also was an advocate for animal protection and lived with eight cats and a dog.

Hack, an optimist with a cheerful disposition, studied the heavens in the firm belief there was no after-life.

“I have no fear of death,” Hack once said in a TV interview. “While we are here, death isn’t” with us.

“When there is death, I won’t be here,” she said.

Among the many Twitter comments about her passing was one from an admirer who wrote that Hack was “so great and nice that God will pretend not to exist so as not to upset her,” the Italian news agency LaPresse noted.

She liked to joke that the “first and last” time she was in a church was for her marriage to fellow native Fiorentine Aldo De Rosa, in 1944. She agreed to a church ceremony only because the groom’s parents were very religious. Hack dressed simply in life, including for her own wedding, when she wore an overcoat-turned-inside out for a bridal gown. She and her widower, 93, had no children.

Hack enrolled at the University of Florence as a student of literature, but after one class, switched to physics. By the early 1950s, she was an astronomer at the Tuscan city’s astronomical observatory.

She was also an athlete, excelling in track. Specializing in the long jump and high jump from 1939 to 1943, she won national university championships and placed high in national championships.

Hack was active in left-wing politics, including most recently supporting the governor of southern Puglia, Nicki Vendola, one of Italy’s few openly gay politicians.

“With Margherita Hack’s passing, we lose an authoritative voice in favor of civil rights and equality,” said Fabrizio Marrazzo, a spokesman for a gay advocacy group, Gay Center. “More than once, Hack came out in favor of gay rights, civil unions and the dignity of gay families.”

Italy’s foreign minister, Emma Bonino, who as a leader of the tiny Radical Party helped wage battles to legalize divorce and abortion in Italy, said Hack was “an extraordinary figure.”

“With her vanishes not only a great scientist but a free spirit, deeply intellectually honest,” ANSA quoted Bonino as saying.

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Tags: astrophysicist , Giorgio Napolitano , Health Science , Margherita Hack , obituary , Science & Health

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Saturday, June 29, 2013

Zomato: Where food lovers meet online

By Tina Arceo-Dumlao

Philippine Daily Inquirer

11:29 pm | Saturday, June 29th, 2013

AN ESTIMATED 15 million people check out Zomato before lunch and dinner.

Filipinos love to go online and they love to eat.

Add the fact that most Filipinos speak English and the result is a very viable market where a website like www.zomato.com, that can help Filipinos decide what new restaurant to try or promotions to avail themselves of, can make a decent profit.

According to Zomato founder and CEO Deepinder Goyal, the company had long wanted to expand to the region from its base in New Delhi, and the Philippines emerged as the logical starting point.

“We have been focusing on increasing our reach beyond India over the last one year and wanted to expand into Southeast Asia, as it is a big market for a product like ours. The choice for our next market launch was between the Philippines and Bangkok. However, we found the Philippines to be a bigger market and since Zomato is currently available only in English, we decided to go with the Philippines first,” Goyal tells SundayBiz.

Zomato is reputedly the world’s largest online restaurant and nightlife guide and it launched its Metro Manila section on March 21. It was started in July 2008 and has since expanded to 21 cities across India, the United Kingdom, United Arab Emirates, Sri Lanka, Qatar, South Africa and the Philippines.

Www.zomato.com is a guide that provides in-depth information on over 95,900 restaurants in countries where it is present. Other features include reviews, ratings and ability follow other users’ recommendations in Zomato. Aside from the website and the apps, Zomato is also available in print in some cities in India. It claims a monthly user base of over 15 million and these provide a big enough market to attract advertising revenue.

SOON, Zomato will launch a print edition in the Philippines.

For Zomato, the Philippine market is big enough to support a specific page.

“When we sent our team to Manila, we noticed that smartphone penetration in the Philippines is very high and given the fact that the Philippines is a very cosmopolitan country that loves to eat, it made for a perfect market for a product like ours. The phenomenal response we received in Manila in just a few months since we launched, has reinstated our belief and our resolve to expand our services further into Southeast Asia in the months to come,” says the Mathematics and Computing graduate of IIT Delhi.

“We already have an office in Manila with a staff strength of 10 and will be hiring more in the months to come. We are currently focusing on garnering stellar content on the website, especially user reviews, after which we will work on the print version of Zomato Manila,” adds Goyal, who got the idea to put up Zomato when he saw the demand for menu cards among his former colleagues at Bain and Company in New Delhi.

Zomato is bent on constantly improving the content on the website as that is the only reason why people will continue the use the site. And as the number of users increase, the advertising money will increase correspondingly.

“Content is our strongest point. To ensure quality, we collect and curate all our data (apart from reviews and ratings) ourselves, and refresh all of it every three months. All this is accessible to users on a clean and simple interface across mediums, which is our key differentiator and enables users to get what they want in three simple steps. Users can also access Zomato wherever they are—be it online or on their smartphones. Our focus throughout everything is to be a reliable source for the user. Even our social features have been implemented keeping in mind our everyday interactions with friends about places or dishes to eat. All these factors together contribute to the success we have enjoyed so far,” says the former management consultant.

ZOMATO founder Deepinder Goyal

To drive people to its website and catch the fleeting attention of netizens, Zomato, which was developed in 2008 out of Goyal’s apartment, also invests in below the line marketing such as in-restaurant branding. Being active on social media also helps attract people to the website. It even runs contests and engaging activities such as the #FoodieFriday quiz on Twitter, and the Instagram contest on the website to keep in touch with the users.

“Overall, we make sure our product reaches as many people as possible, without having to spend unreasonable amounts of money. The focus is on building brand loyalty and good word of mouth, which in itself helps bring a lot of people to Zomato,” says Goyal, who remains responsible for strategy and product development.

He estimates that over 15 million users visit Zomato just before lunch or dinner to help them decide where to eat or order from.

“This forms a highly targeted platform for players in the food and beverage sector to promote their product. Even though all listings on Zomato are free of charge, advertisements are paid for,” he says.

And the work to improve the website never ends.

According to the 30-year-old Goyal, Zomato is always looking to add more features to enhance the experience for the users. And many of these are location-specific as well.

“For example, in Dubai we have added filters for users to find sports bars, or restaurants serving sheesha, as these are very popular there. We are also working on building the website in other languages for more users to be able to access it. Given that our website has also become a social network of sorts for foodies, we are working on adding more features to create a stronger social experience for users who write a lot of reviews,” he says.

The work has just begun but Zomato believes that with the success so far, it is on the right track to winning the hearts and clicks of Filipino foodies.

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Tags: food , Restaurant , Website , Zomato

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Tiger Airways pounces on niche PH markets

By Riza T. Olchondra

Philippine Daily Inquirer

11:20 pm | Saturday, June 29th, 2013

OLIVE Ramos, president and CEO of Tiger Airways Philippines

With the Philippines poised to become the next tiger economy, regional low-cost carrier Tiger Airways is anticipating more demand for flights connecting the country to its Asian neighbors and even beyond. “It’s a niche we are eager and equipped to serve,” newly-appointed president and CEO Olive Ramos says in an interview.

Eager to open up new routes in the country, Tiger Airways will make its formal debut as Tiger Airways Philippines on July 10.

“Tiger Airways is the leading airline and travel partner connecting people across Asia Pacific. It is a distinguished regional brand that differentiates itself in terms of safety and reliability,” Ramos says.

As to how Tiger Airways can open up passengers’ minds about trying out a new entrant in the Philippine market, Ramos says, “We have a small fleet of five aircraft, but that drives us to establish fundamentals first before moving to next level, that is, growing our fleet.”

NEW plane to debut on July 3 as Tiger Airways Philippines

Ramos says she monitors the performance of the Tiger Airways fleet with daily reports on on-time performance as well as delays. “I get a test message right away when any of our flights are delayed, and one of my first questions is: what help do you need? We value transparency and those who report delays and such will not be punished for being open. We focus on corrective action, not punitive action,” Ramos said.

Passengers are often stressed by the traffic, long lines, and waiting times at the airport, Ramos says, which is why Tiger Airways takes extra effort to make them comfortable and put their mind at ease. “On Time Performance is important to us, but we do recognize their are some variables that are non-controllable, such as immigration and airport congestion. These things we communicate readily with passengers. For the controllable variables such as maintenance and staff, we have a rigid process for deploying aircraft on time and we have good partners in repairs and maintenance,” Ramos says.

RAMOS (center) with flight crew of Tiger Airways Philippines

It may be unavoidable to have to deal with a demanding and/or dissatisfied customer now and then, but Ramos says staff are trained to communicate with them and treat them well. “If there is more than three hours delay, we give them food, and one proven and tested formula to ensure the cabin crew treat passengers well is to treat the crew well. More than the salary—though I would say we pay a little above market— our staff can count on us to care about them and to treat them as professionals,” Ramos says.

Together with the Filipino personnel’s warm and hospitable traits, the airline will be “the one to beat” in the coming years, Ramos says.

And right after the debut of its Philippine brand, Tiger Airways is opening a pioneering Singapore-Kalibo flight on July 18, 2013. This will allow travellers to go straight from morning meetings in Singapore to an all-night beach party in Boracay without having to make a stopover in Manila or Clark.

This route, Ramos says, is for business people making a quick getaway, for overseas workers in Singapore vacationing with their friends and family for the weekend, and for Filipinos who want to go from beach partying to shopping in Singapore. And why not, with consumer spending soaring in this investment-grade, increasingly affluent economy?

“Boracay is where tourists can really let their hair down in a party atmosphere. Those who want something different from the more typical, meditative beach atmosphere are really attracted to Boracay,” Ramos said. “It’s just one of many niche markets we can serve.”

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Tags: Air Transport , budget airline , Philippines , Tiger Airways

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Roger Wiegand Predicts a Brand New World for Gold

The Gold Report: In early 2012, Roger, you predicted that the price of gold would rise to over $2,000/ounce ($2,000/oz) during the year. But as the overall stock market increased in value, the yellow metal went in the opposite direction. What happened?

Roger Wiegand: Two things happened. First, the last gold peak almost made it. It went to $1,923/oz, and that was a technical and fundamental top. Then it sold down. The other thing that happened is that the U.S. Treasury intentionally sold gold to protect the stock and bond markets. Treasury feared that if gold ran up too high too quickly, people would dump securities en masse.

We are in the seasonal cycle when many markets go sideways. We have seen the selloff at the end of last week. A triple bottom is extremely bullish. The snap back in the price going long could be impressive.

TGR: What factors are keeping gold down in the near term?

RW: Gold is taking a pounding since the big bullion banks have full control and they have to cover their radical short positions taken at the behest of the FOMC and U.S. Treasury to preserve the fiat markets. Briefly, they kept the gold market under control to prevent a runaway for the FOMC and are now using TARP bank capital and derivative dollars to drive gold to the basement. Next, they are accumulating all the gold bullion they can to preserve their wealth in the forthcoming legendary crash. In addition, they get to buy it on the cheap as the dumb money is in full exit in fear.

Also, China, South Korea and Japan have problems and each central bank is dealing American bonds. Recently, China sold American paper through its own markets in order to offload Treasury bonds for currency. All kinds of problems are looming in China; some experts claim that China's export trade numbers are only half of what was actually reported. South Korea is clearly weakening, and Japan is experiencing an emergency, causing it to stimulate at twice Mr. Bernanke's rate. That is simply unsustainable. Japan is the Achilles heel of the whole financial system. If the yen runs away, it's a disaster.

What does that mean for gold? Starting in August, the price will likely rise until the end of September. Then harsh political and economic factors will create serious problems in the global markets: I'm calling for a 50% correction in the U.S. stock markets in Q4/13.

TGR: In your June 6 newsletter, you said that we are on the verge of a brand new world.

RW: The brand new world is imminent because the lessons of 2008 were not learned. The banks are doing the same bad things they were doing before the crash, only worse. The derivative markets are larger now than they were back then. A huge number of student loans might well be written off. And the real estate market is doing a rerun. Incredible! People with foreclosures who may not be qualified for a new mortgage are receiving Federal Housing Authority-insured loans in a desperate effort to try to prop up the home loan industry, which is a major sector of the U.S. economy.

We are in a depression, not a recession. The real numbers for unemployment in the U.S. are 25%. They were 25% in the 1930s. In Spain, 54% of the workers under age 25 are unemployed. The down-the-hill slide is global and in slow motion. People still believe a lot of media nonsense, but this market simply has not corrected. The ultimate jobs program will be a new war.

TGR: Where do you think a war will break out, Roger?

RW: Iraq is cranking up for another round. War is on the agenda in Turkey. Libya has bad problems, not to mention the horror that is Syria. China is beating a war drum, but that's just talk. North Korea is not capable of going to war. But more wars over energy resources will continue to break out in the Middle East.

War creates jobs. World War II ended the Depression of the 1930s. I don't think there will be a nuclear war, but three or four conventional wars can go on simultaneously, hire a lot of people, square away the economy and get things righted in the bond market.

TGR: Given such a dismal scenario, how will that affect the price of bullion and shares in gold mining firms?

RW: In the short term, gold and silver shares will follow the futures and cash markets. We are still in a corrective phase, which can last for another six weeks. But once gold and silver start to climb, the shares will follow. It's a big mistake right now for people to unload shares in good junior companies just because the stock has been beaten down. The companies with good fundamentals and enough cash to sustain operations for the next two to three years are going to do better. Look for good management with a project next door to a senior that is going to buy out reserves. Cash-starved greenfield juniors out in the middle of nowhere with no senior around to buy them out will not make it. It is like the salmon going upstream some fish fall by the stream side, some make it home to nest.

TGR: What technical tools do you use to analyze the future of gold?

RW: I look at the Market Vectors Junior Gold Miners ETF (GDXJ), which is the Index for the juniors group. Right now, the graph of that technical tool looks like an upside down head and shoulders, and that's very bullish. It is going to take a few more weeks for the junior stocks to pick up steam.

TGR: Do you have any junior names that meet your criteria for success?

RW: Watch California Gold Mining Inc. (CGM:TSX.V) at $0.08/share. The company has top management from Northern Gold Mining Inc. (NGM:TSX.V). It is located in a region with gold mining activity historically. Six mines are in various stages at that location. California Gold Mining stock had a low of $0.03 and a high of $0.24/share. Technically, we add the high and low and divide by two and find a 50% retracement. That is half of $0.27 or almost $0.14. The company has money and it has strong backers.

One of the standards out there that has been very good to our readers for the last four years is Timmins Gold Corp. (TMM:TSX; TGD:NYSE.MKT). It is a steady play, always on the upswing. When the futures and the cash markets rise, Timmons runs alongside. The near-term price is between $2.50 and $2.75/share. We're looking at $2.85 to $3/share in the next 3060 days, roughly.

We have followed Canasil Resources Inc. (CLZ:TSX.V) for years. It is trading around $0.055/share. Rounding to $0.06, we are looking at $0.125 as a goal within 90 days. A key point with Canasil is it is primarily a silver exploring company in northern Mexico. Its partner is MAG Silver Corp. (MAG:TSX; MVG:NYSE), and the two companies just signed a partnership agreement, expanding a major project with an injection of several million dollars. MAG Silver has a lot of capital. MAG Silver's Peter Megaw is one of the top geologists in the business. He told me that the company plans to build a 100 million ounce silver reserve and make it as big as the biggest of the precious metal mines in Mexico. So far, it is doing exactly that. Canasil also has some wonderful projects in British Columbia that just got permits.

At Trader Tracks, we like Santacruz Silver Mining Ltd. (SCZ:TSX.V; 1SZ:FSE) at CA$1.15/share. We are looking for a 50% retracement back to CA$1.75/share.

And there is Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) in Nevada, right next door to Newmont Mining Corp. (NEM:NYSE). The chief geologist for Newmont has done the exploratory work and the results look good. The firm's shares have big support by some very wealthy investors and are going up. The price was down to CA$0.50/share in May, and it is at CA$0.67 today. Gold Standard Ventures is the perfect example of a company that is building good reserves next door to a senior that, in my opinion, is going to buy it out.

One of our old favorites is Hecla Mining Co. (HL:NYSE). Today, it is at $2.79/share. The company went through a spate of problems during the last three years. But after settling a lawsuit with the Environmental Protection Agency, it expanded the Lucky Friday mine in Idaho. It bought out Rio Tinto Plc's (RIO:NYSE; RIO:ASX) partnership shares there. It now totally owns the Greens Creek project on Admiralty Island in Alaska, which has a silver life of 50 years. That island mine was running on electricity generators, and now it is connected by wire to the mainland. Hecla has been busy with a gold mine in northern Mexico in an area that is very rich, with four seniors operating in the region. We are looking for a high of $4.88/share in three to six months. Hecla's stock likes to go to $8 or $9/share, and then retreat on a correction.

TGR: Roger, can you tell us what kind of technical information you look at to come up with your recommendations?

RW: I am mainly a chartist and a technician, but one cannot neglect the fundamentals, particularly considering the state of political economy in the world. First off, does a firm have good management? Is it located in an area that's politically reliable? Does it have expertise in engineering and geology? Then, we look at valuations.

Remember, if you want to find gold or silver, go where the old mines have been prolific. Just because a lot of ore has been pulled out successfully does not mean that there is not more there to be mined. California Gold is a perfect example. The two big mines that Hecla runs in Idaho and Alaska are examples. The old mines in northern Mexico are loaded with silver. First Majestic Silver Corp. (FR:TSX; AG:NYSE; FMV:FSE) is an intermediate-size miner in Mexico that has done exceedingly well. Its stock is lofty in price, but the company continues to prove its way down the road and make money by expanding the business.

After assessing the fundamentals, we examine the technical side with a long-range chart of 5 or 10 years. Then we narrow it down to a one-year chart. We next narrow it down to the cycles. Historically, gold and silver do very well between Nov. 1 through April. From May through mid-August, everything slows down. The annual fall rallies start the second or third week of August and run until the middle of October. Traders and investors in gold and silver know that the two big contracts in Q4 for gold and silver are the December futures, and they expire in November.

TGR: The futures explain the cycles?

RW: Yes. August gold is not that big a deal. December is the really big one for gold. In silver, March is the big one. July is less important. September is big because it's in the middle of the peak season going higher. The other big cycle for silver is December. So keep these cycles in mind when trading and investing. Those are the times of year a trader or investor with average experience can profit from quantification. Chart the time of year when prices consistently bottom out and then start to rise.

TGR: Any junior names for us outside of North America?

RW: We follow Global Minerals Ltd. (CTG:TSX.V; DPF:FSE) in Slovakia. It has great reserves. It is a previously exploited, proven mine. Slovakia is a business-friendly, Westernized country with all the big auto and consumer companies operating there. Global Minerals had a dewatering project that went on for about eight months. The pumping is completed, and the engineers and geologists are working at the 3,000-foot level, doing the exploratory work for the next move.

TGR: Do you own stock in Global Minerals?

RW: I trade futures and commodities. Because I recommend stocks for the Trader Tracks newsletter, ethically I cannot buy them. That breaks my heart, sometimes, because I've seen some dandies that I knew were going to do well. But I personally trade futures in gold, silver, currencies, the energy sector and grains.

TGR: Any parting advice, Roger?

RW: Please have patience, gold investors. Some analysts are predicting crazy numbers, like $900/oz. Not me.

TGR: Thanks, Roger.

Roger Wiegandaka Traderrogproduces Trader Tracks newsletter to provide investors with short-term buy and sell recommendations and give them insights into political and economic factors that drive markets. After 25 years in real estate, Wiegand has devoted intensive research time to the precious metals, currency, energy and financial market for more than 18 years. He creates a weekly column for Jay Taylor's Gold, Energy Tech Stocks newsletter.

Want to read more Gold Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

DISCLOSURE:

1) Peter Byrne conducted this interview for The Gold Report and provides services to The Gold Report as an independent contractor. He or his family own shares of the following companies mentioned in this interview: None.

2) The following companies mentioned in the interview are sponsors of The Gold Report: Timmins Gold Corp., MAG Silver Corp., Santacruz Silver Mining Ltd., Gold Standard Ventures Corp. and Global Minerals Ltd. Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment.

3) Roger Wiegand: I or my family own shares of the following companies mentioned in this interview: None. I personally am or my family is paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.

4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts' statements without their consent.

5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer.

6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/oAFAmA7QHEY/15382

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Friday, June 28, 2013

US stocks fall in quiet end to a bumpy month

Associated Press

8:37 am | Saturday, June 29th, 2013

In this Associate Press file photo, specialist Jason Hardzewicz, left, works at his post on the floor of the New York Stock Exchange. World stock markets were boosted Friday June 28, 2013 by encouraging indicators from Japan and further proof that the U.S. economy is on the upswing. AP

NEW YORK — After flitting between tiny gains and losses most of Friday, the U.S. stock market closed mostly lower, a peaceful end to the most volatile month in nearly two years.

“It’s a dull Friday,” said Gary Flam, a stock manager at Bel Air Investment Advisors. A bull market, he added, is “rarely a straight march up.”

The Standard & Poor’s 500 index ended its bumpy ride in June down 1.5 percent, the first monthly loss since October. The index still had its best first half of a year since 1998.

Investors seemed unsure how to react to recent statements by Federal Reserve officials about when the central bank might end its support for the economy. Mixed economic news Friday added to investor uncertainty after big stock gains.

On Friday, an index consumer confidence was up but a gauge of business activity in the Chicago area plunged.

“Investors don’t know what to make of the news,” said John Toohey, vice president of stock investments at USAA Investment Management. “I wouldn’t be surprised to see more ups and downs.”

The S&P 500 stock index closed down 6.92 points, or 0.4 percent, to 1,606.28. The Dow Jones industrial average fell 114.89 points, or 0.8 percent, to 14,909.60. The Nasdaq composite index rose 1.38 points, or 0.04 percent, to 3,403.25.

Stocks have jumped around in June. By contrast, the first five months of the year were mostly calm, marked by small but steady gains as investors bought on news of higher home prices, record corporate earnings and an improving jobs market.

By May 21, the S&P 500 had climbed to a record 1,669, up 18 percent for the year. Fed Chairman Ben Bernanke spoke the next day, and prices began gyrating.

Investors have long known that the central bank would eventually pull back from its bond purchases, which are designed to lower interest rates and get people to borrow and spend more. Last week, Bernanke got more specific about the timing. He said the Fed could start purchasing fewer bonds later this year, and stop buying them completely by the middle of next year, if the economy continued to strengthen.

Investors dumped stocks, but then had second thoughts this week as other Fed officials stressed that the central bank wouldn’t pull back on its support soon. The Dow gained 365 points over the previous three days this week. The Dow has had 16 triple-digit moves for the month, the most since September 2011.

Bonds have also been on a bumpy ride in recent weeks, mostly down.

The prospect of fewer purchases by the Fed sent investors fleeing from all sorts of bonds — municipals, U.S. Treasury securities, corporate bonds, foreign government debt and high-yield bonds. Investors pulled a record $23 billion from bond mutual funds in the five trading days ended Wednesday, according to Bank of America Merrill Lynch.

Bond yields, which move in the opposite direction of bond prices, have rocketed.

The yield on the 10-year Treasury note rose to 2.49 percent from 2.47 percent late Thursday. Last month, the yield was as low as 1.63 percent. Treasury yields help set borrowing costs for a large range of consumer and business loans.

It’s been a rocky month in foreign markets, too. Major indexes in France, Germany and Britain have lost about 5 percent in June.

In U.S. economic news Friday, the University of Michigan said its index of consumer sentiment dipped to 84.1 in June from 84.5 the previous month. But that was still relatively high. May’s reading was the highest since July 2007.

Meanwhile, the Chicago Business Barometer sank to 51.6 from a 14-month high of 58.7 in May. That was well below the level of 55 that economists polled by FactSet were expecting.

Bill Strazzullo, chief strategist of Bell Curve Trading, is worried stock investors will sell on any signs the Fed is slowing down its economic stimulus program.

“This rally is still very much being supported by monetary easing by central banks,” he said. He added, referring to Friday’s quiet trading: “It’s the calm before the storm.”

Eight of the 10 industry groups in the S&P 500 were down for the day, led by health care companies. They fell 0.9 percent.

In commodities trading, gold gained $12.10 to $1,223.70 an ounce. The price of crude oil fell 49 cents to $96.56 a barrel. The dollar rose against the euro and the Japanese yen.

Among stocks making big moves:

— BlackBerry maker Research In Motion plunged $4.02, or 28 percent, to $10.46 after the company posted a surprise loss in the first quarter and warned of future losses despite releasing its new line of smartphones this year. The company also discontinued making new versions of its slow-selling tablet device, The Playbook.

— Accenture fell $8.26, or 10 percent, to $71.96. The consulting firm cut its revenue and profit outlook for its fiscal year ending in August. Revenue was hurt by lower demand in Europe as well as its communications, media and technology division.

— Hospira rose $2.16, or 6 percent, to $38.31. The drug company said it had received a positive opinion from a European drug regulator for a drug to treat rheumatoid arthritis, among other illnesses. A final decision could come three months.

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Short URL: http://business.inquirer.net/?p=129527

Tags: Bel Air Investment Advisors , bull market , Standard & Poor's , US economy , US stock

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

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Today's Video Update: Fibonacci Had It Right!

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Friday, the 28th of June.

Fibonacci Had It Right!

The recent recovery from the lows seen in the DOW at 14,548 retraced exactly to the Fibonacci points that I laid out in Wednesday's video. For the DOW that number was 15,041, the S&P retracement came in at 1,618 and the NASDAQ came in at 3,414.

Next Week Could Be The Key For Crude Oil

The crude oil market put in a positive performance this past week closing up 4%. I believe that next week is going to be a key week for this market and should the week close over the 98.50 level, preferably the 99 level, it would be a very bullish sign up for this market.

Gold Breaks Below $1,200

Our Trade Triangles for gold have been short spot gold since June 18th at $1,377.99. This market position now has an open trade profit of of over $18,000 based on a position of one futures contract. My target zone for gold remains the $1,160-$1,170 area. This represents a Fibonacci retracement of 61.8% from the highs seen on September 6, 2011 and the lows seen back on November 8, 2011. I continue to remain negative on gold and believe this could be a perfect 52-week weekend trade to be short over the weekend.

Watch Today's Video Update Here

There's More

In addition to looking at our normal markets, we will also be looking for stocks that are trending higher today. If you haven't watched any of my recent videos, you can watch them by clicking on the links below.

Recent Special Videos:

Five Professional Trading Rules

Listen and Learn

Three Easy Ways

Fundamentals VS Technicals

Gannett (NYSE:GCI)

Gold

Early Warning System

SodaStream (NASDAQ:SODA)

Apple (NASDAQ:APPL)

Yahoo (NASDAQ:YHOO)

S & P 500 (SP500)

Wal-Mart (NYSE:WMT)

Lululemon (NASDAQ:LULU)

Apple (NASDAQ:APPL)

Tesla (NASDAQ:TSLA)

Google (NASDAQ:GOOG)