Wednesday, July 31, 2013

RCBC unloads shares in realty company

By




THE RCBC Plaza. INQUIRER FILE PHOTO



MANILA, Philippines—Rizal Commercial Banking Corp. has obtained board approval to sell its 34.8-percent economic interest in the property firm that owns the RCBC Plaza on Ayala Avenue to a consortium of affiliate companies.


In a disclosure on Thursday, RCBC said the unloading of its interest in RCBC Realty was part of preparations for stringent capital adequacy requirements under the so-called Basel 3 framework.


Universal and commercial banks are required by the Bangko Sentral ng Pilipinas to adopt by January 1, 2014 the capital adequacy standards under Basel 3, which introduces a complex package of reforms designed to improve the ability of banks to absorb losses, extend the coverage of financial risks and have stronger firewalls against periods of stress.


A consortium comprising of Pan Malayan Management and Investment Corp., House of Investments and RCBC Land agreed to buy out all of RCBC’s interest in the property firm.


The transaction means that the Yuchengco group takes this property exposure off RCBC’s books to allow the bank to focus on core banking businesses. By selling its entire interest in RCBC Realty, the bank not only generates proceeds but it also reduces risk weights from property holdings, especially as capital adequacy ratio requirements tighten under Basel 3.


RCBC Plaza was the first office property developed in the Makati central business district to be granted an IT-zone status by the Philippine Economic Zone Authority, which means that qualified locators and tenants enjoy a package of tax incentives designed to attract foreign investments in the areas of computer- and knowledge-based operations such as IT solution providers, shared services, software development and engineering design, among others.


This office property consists of two towers—Yuchengco Tower and Tower 2—a three-level podium and seven levels of basement parking with a total area of 250,000 square meters. Besides office space, it houses the Yuchengco Museum, the 450-seat Carlos P. Romulo Auditorium, a chapel that can seat 150 people, banking chambers in both towers, a VIP lounge, a gym and health spa, and an open-air courtyard.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=136029


Tags: Banking , RCBC , RCBC Realty , Rizal Commercial Banking Corp.



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:




seo tools

Asian stock markets buoyed by Fed statement






Screengrab from http://finance.yahoo.com/intlindices?e=asia



BANGKOK — Asian markets rose Thursday after the U.S. Federal Reserve gave no indication it was preparing to wind down a massive bond-buying program that has propelled investors into stocks.


The Fed wrapped up a two-day policy meeting on Wednesday without any changes in its monetary policy that has supported the economy by keeping interest rates ultra-low. That, in turn, has encouraged lending and spending and also boosted stock markets as investors seek returns higher than offered by bonds.


In China, meanwhile, ambiguous data about the country’s powerhouse manufacturing industries did little to dent the mood. The China Federation of Logistics and Purchasing’s manufacturing index released Thursday rose to 50.3 last month from June’s 50.1.


Another survey, however, showed manufacturing at its lowest in 11 months. HSBC’s purchasing managers’ index fell to 47.7 last month from 48.2 in June. Readings below 50 on the 100-point scale indicate a contraction in activity.


The results weren’t shocking, analysts said, as evidence that growth is moderating in the world’s No. 2 economy has been piling up in recent weeks.


“On balance, today’s number probably didn’t really change … consensus views about the outlook for China,” said Ric Spooner, chief market analyst at CMC Markets in Sydney. “It was a bit of a divided story there, which is why there hasn’t been much of a response at this stage.


Japan’s Nikkei 225 index, which has zigzagged all week, gained 2 percent to 13,937.48. Hong Kong’s Hang Seng advanced 0.7 percent to 22,045.36. The Shanghai Composite Index rose 0.9 percent to 2,010.85. South Korea’s Kospi added 0.5 percent to 1,922.56. Australia’s S&P/ASX 200 fell marginally to 5,049.40.


Better-than-expected U.S. growth in the second quarter of 2013 also gave a modest boost to investor morale. The world’s No. 1 economy grew at an annual rate of 1.7 percent, the government said Wednesday, beating expectations of 1 percent for the period. Separately, a private survey from payroll company ADP showed that U.S. businesses created 200,000 jobs this month.


In addition, Eurostat figures showed the number of unemployed across the 17 European Union nations fell for the first time since April 2011, providing further hope for an eventual economic recovery in the region.


Australian banking stocks fell after reports the government plans to introduce an insurance levy on deposits for banks. Details were sketchy but investors shed stocks out of fear that it could affect the bottom line of banks. Australia & New Zealand Banking Group fell 1.5 percent. National Australia Bank lost 1.7 percent.


Panasonic Corp. jumped 5.5 percent, a day after the Japanese consumer electronics giant said its quarterly earnings surged more than eight-fold. Its 107.8 billion yen ($1.1 billion) net profit in April-June was up from net profit of 12.8 billion a year earlier.


On Wednesday, the Dow Jones industrial average slipped 0.1 percent to close at 15,499.54. The Standard & Poor’s 500 index dropped marginally to 1,685.73. The Nasdaq composite index rose 0.3 percent to 3,626.37.


Benchmark crude for August delivery was up 57 cents to $105.61 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.95 to close at $105.03 a barrel on the Nymex on Wednesday.


In currencies, the euro fell to $1.3272 from $1.3299 late Wednesday. The dollar rose to 98.30 yen from 97.75 yen.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=136015


Tags: Asia , markets , stocks , Trade , US Federal Reserve



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:




seo tools

Toyota to showcase concept cars in the Philippines



MANILA, Philippines—Toyota Motor Philippines will give us a glimpse this month of how cars will be in the near future at The World of Toyota Motorshow on August 10 to 18 at the World Trade Center, Pasay City.


The No. 1 automotive brand in the country will bring in two concept cars to the Philippines. Toyota’s Fuel-Cell Vehicle Reality and Revolution (FCV-R) and Lexus’s Future-Luxury Coupe (LF-LC) exude the brand’s new design philosophy and technology of cars in the future.


Toyota’s FCV-R is a dedicated concept model that is highly practical. Marking its next step towards mass production sometime in 2015, this mid-size family FCV runs on hydrogen and does not emit emission gas or CO2 but only water vapor. Overall, the FCV-R combines breakthrough innovation with ergonomic practicality and futuristic styling.


Mirroring Toyota’s new family design, both the front and rear styling exposes a “W” theme, signifying the fuel cell cooling system.


On the other hand, the LF-LC was first revealed in Detroit, Michigan at the North American International Auto Show.


The LF-LC shows off the brand’s signature spindle-shaped grille supported by a front-engine and rear-wheel drive drivetrain layout. Furthermore, the vehicle’s interior displays the latest advanced technology with natural forms and shapes to create a driver-focused synergy of form and function. All these are powered by the latest Advanced Lexus Hybrid Drive that delivers driving performance and fuel efficiency.


All in all, the FCV-R and the LF-LC shape Toyota’s future in mobility. Moreover, this rare opportunity to view these concept cars will give visitors a chance to envision the brand’s new design language and technology that promises to be consistent in all upcoming Toyota vehicles. As the brand moves forward after 25 years in the Philippines, Toyota remains to be committed in creating quality vehicles and ultimately satisfied customers.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135987


Tags: FCV-R , Fuel-Cell Vehicle Reality and Revolution , Lexus’s Future-Luxury Coupe , LF-LC , Motoring , The World of Toyota Motorshow , Toyota , Toyota motor Philippines



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:




seo tools

Henry Sy, 9 other Taipans top Forbes’ rich list in PH

By




Henry Sy INQUIRER FILE PHOTO



MANILA, Philippines – The richest man in the Philippines, Henry Sy, continues to dominate over the business landscape of the country as he retains the top spot in the Forbes Philippines rich list for the sixth year in a row.


“Topping the list for the sixth straight year is Henry Sy. His net worth increased by $2.9 billion to $12 billion, as shares of his company SM Investments reported record profits of over $570 million in 2012,” Forbes said in a statement.


Lucio Tan is at second with an estimated $7.5billion and “is this year’s biggest gainer in dollar terms after his net worth jumped to $7.5 billion, up by $3 billion from $4.5 billion in 2012,” Forbes said.


Andrew Tan has moved up to third place from sixth in the previous year with $4.6 billion, which was double his wealth in 2012, it said.


Enrique Razon Jr. came it at fourth with $4.5 billion and John Gokongwei Jr. at fifth with $3.4 billion.


“The Philippines’ richest also benefited from a buoyant stock market, which is up 28% in the past year,” Forbes said.


The Philippines has two new billionaires, former senator Manuel Villar, who is at number 16, with an estimated wealth of $1.05 billion and the Aboitiz Family which ranks seventh with $3 billion after the entire clan consolidated their wealth.


“The combined net worth of the Philippines’ 50 richest totaled $65.8 billion, more than a quarter of the nation’s Gross Domestic Product,” Forbes said.


“This list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, analysts and other sources,” it said.


The full list according to the Forbes Philippines Richest List that can be found in http://www.forbes.com/ philippines-billionaires/


1) Henry Sy; US$12 billion


2) Lucio Tan; $7.5 billion


3) Andrew Tan; $4.6 billion


4) Enrique Razon Jr.; $4.5 billion


5) John Gokongwei Jr.; $3.4 billion


6) Jaime Zobel de Ayala; $3.1 billion


7) Aboitiz Family; $3 billion


8) David Consunji; $2.7 billion


9) George Ty; $2.6 billion


10) Lucio & Susan Co; $1.9 billion


11) Tony Tan Caktiong & Family; $1.7 billion


12) Robert Coyiuto Jr; $1.5 billion


13) Emilio Yap; $1.35 billion


14) Roberto Ongpin; $1.3 billion


15) Inigo & Mercedes Zobel; $1.2 billion


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135963


Tags: Business , Forbes Magazine , Henry Sy , Philippines , wealth



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:




seo tools

Caffeine heavy? Energy drinks makers defensive at US Senate hearing






Senior executives from Monster Beverage, Red Bull and Rockstar joined forces on Capitol Hill on Wednesday to fight off growing claims that their caffeine-rich products are hazardous to young people’s health. AFP FILE PHOTO



WASHINGTON—The multibillion-dollar global energy drink industry joined forces on Capitol Hill on Wednesday to fight off growing claims that their caffeine-rich products are hazardous to young people’s health.


Senior executives from Monster Beverage, Red Bull and Rockstar told the US Senate’s Commerce Committee that they do not pitch their drinks at children, despite their aggressive use of social media and sponsorship of action sports.


“Monster is, and always has been, committed to ensuring that all of the ingredients in its energy drinks, including caffeine, are safe and in regulatory compliance for their intended use,” Monster Beverage chief executive Rodney Sacks said.


Energy drinks are a small but growing segment in the non-alcoholic beverage industry in the United States, but health experts have expressed concern that their caffeine content poses risks in youngsters as heart arrhythmia and higher blood pressure.


Last month, the American Medical Association called for a ban on the marketing of energy drinks to children and teenagers, said Senator Jay Rockefeller, the commerce committee chairman, at the start of the hearing.


He stated that in the first six months of this year, poison control centers in the United States received about 1,500 reports involving energy drinks, “more than half of which involved children under the age of 18.”


‘Caffeine toxicity’


Sitting in the hearing room was Wendy Crossland, who in October 2012 sued Monster Beverage after her daughter Anais Fournier died in December 2011 after consuming two 24-ounce cans of Monster energy drink within 24 hours.


The cause of death, according to the girls’ doctors in Maryland, was caffeine toxicity.


In his thick South African accent, Monster Beverage’s Sacks argued that, at 160 milligrams, a 16-ounce can of Monster Energy—its best-selling product—had just under half the caffeine of a similar-sized cup of Starbucks coffee.


“The safety of caffeine and other ingredients in Monster energy drinks is well established by an overwhelming body of generally accepted literature published by reputable third parties,” he said.


He also stated that Monster’s primary demographic is young adult males, and that it “does not focus its brand initiatives on young teenagers,” although it sponsors a so-called Monster Army to support and develop teenaged athletes.


Red Bull North America vice president Amy Taylor said Red Bull products, first launched in Europe in 1987 and now sold in more than 165 countries, are sophisticated premium beverages aimed squarely at adults.


She used Wednesday’s hearing to announce that it would limit to 80 milligrams per 8.4 ounces the amount of caffeine in its drinks, and that it would never use child- or teen-oriented characters in its animated “Red Bull gives you wings” advertisements.


But she was caught off-guard when Senator Ed Markey of Massachusetts drew attention to a post on Red Bull’s Instagram feed that recommended that consumers wash down a sleeping pill with a can of Red Bull and then “let the battle begin.”


“It shouldn’t have been messaged,” she said.


Rockstar co-owner Janet Weiner said she felt “victimized” by the negative attention being given to energy drinks, but promised—as did Sacks and Taylor—to review her company’s social media sites and pull down any posts that encourage unhealthy consumption of energy drinks.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135949


Tags: Beverage , energy drinks , Health , Monster Beverage , Red Bull , Rockstar , Senate , US



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:




seo tools

CAAP enforces ban on ‘food, fish runs’ at Naia

By




Ninoy Aquino International Airport. AFP FILE PHOTO



MANILA, Philippines—Fresh fish, fruits and other delicacies from the provinces might take a little longer to reach Metro Manila’s dining tables after the Civil Aviation Authority of the Philippines began enforcing on Wednesday an absolute ban on “food and fish runs” at the Ninoy Aquino International Airport.


At a press conference, CAAP director general John Andrews said the “food and fish runs”—referring to small planes that carry fish, lobsters, tuna, fruits and other food products from the provinces—would be transferred to the Maj. Danilo Atienza Air Base at Sangley Point in Cavite.


From Sangley Point, the food can be brought to Metro Manila overland or by sea.


The ban was supposed to have been enforced last June but the CAAP allowed the small planes to go to the NAIA for refuel and maintenance. However, the agency later discovered that some of the planes were still delivering fish and food.


According to Andrews, the absolute ban is part of the CAAP’s efforts to decongest air traffic at the country’s premier gateway by freeing up the primary runway, which is heavily used by commercial passenger flights.


The agency also restricted the landing at or taking off NAIA of corporate jets to two per hour from 11 p.m. to 11 a.m. the following day.


Aircraft not exceeding 5,682 kg may land at NAIA from 1 a.m. to 3 a.m. and from 8 a.m. to sunset daily and only when the secondary runway is not in use.


The restrictions, which took effect on Wednesday, are part of the preparations of the transfer of the general aviation services to Sangley Point, which shall soon be vacated by the Philippine Air Force.


For his part Manila International Airport Authority general manager Angel Honrado said general aviation accounts from seven to eight “events per hour” at NAIA compared to 40 for commercial airlines.


“The challenge with general aviation is it’s unprogrammed, you don’t know when they’ll take off or land in advance, unlike the commercial flights which are scheduled and given time slots. By international practice, general aviation is not given slots but in a good number of airports around the world, general aviation flights are not within the major airways and main terminals,” he said.


Honrado said the transfer of general aviation to Cavite would not totally solve congestion at NAIA but he said the CAAP measures may appear “small” but they are actually a “great step” in minimizing delays and cancellations.


He said the CAAP and the MIAA have also been upgrading air traffic systems and training more personnel.


Andrews also announced that CAAP has been consulting with the airline industry for the enforcement, possibly by September, of a “40-minute turnaround” rule for domestic flights, particularly low-cost carriers.


He said the regulation would give an aircraft plying a particular route up to 40 minutes of scheduled stop in the airport before embarking on the next trip.


He said 40 minutes would be enough for a domestic flight leaving NAIA and going back again to adjust for delays incurred in earlier trips so that the lost time would not accumulate and thus delay or even cancel latter trips.


The 40-minute stop would also give pilots enough time to rest and to prepare for their turnaround flights so as to minimize air accidents caused by human factor.


Andrews saidthat the scheduled turnarounds, once enforced by the CAAP, would be the first such regulation in the world.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135943


Tags: airlines , airports , aviation , Civil Aviation Authority of the Philippines , delivery , Fish , flights , food , Fruits , Philippines - Regions



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:




seo tools

US stocks end mixed after Fed statement






A television screen on the floor of the New York Stock Exchange shows the rate decision by the Federal Reserve, as specialist Jeffrey Berger works at his post, Wednesday, July 31, 2013. US stocks Wednesday ended little changed after a busy day of news that included a policy statement from the Federal Reserve and a mixed report on US economic growth. AP PHOTO/RICHARD DREW



NEW YORK CITY—US stocks Wednesday ended little changed after a busy day of news that included a policy statement from the Federal Reserve and a mixed report on US economic growth.


At the closing bell, the Dow Jones Industrial Average lost 15.13 (0.10 percent) at 15,505.46.


The broad-based S&P 500 edged up 0.13 (0.01 percent) to 1,686.09, while the tech-rich Nasdaq Composite Index added 9.90 (0.27 percent) at 3,626.37.


Second-quarter US gross domestic product grew 1.7 percent, above the 1.1 percent pace expected by analysts. However, the report also included a steep downgrade in first-quarter GDP growth, which is now estimated at 1.1 percent instead of 1.8 percent.


Meanwhile, the Federal Reserve’s Federal Open Market Committee (FOMC) concluded a two-day meeting with a statement that economic growth was at a “modest” pace and pledging to maintain its aggressive bond-buying program. The statement did not give a timetable for scaling back the bond-buying program.


Art Hogan, a managing director at Lazard Capital Markets, rated the Fed’s statement as “mildly dovish” and suggesting that the Fed was more likely to taper the program in December than September.


US bond yields retreated after the FOMC statement.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135935


Tags: close , Finance , stocks , US



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:




seo tools

Government to bid out rights for Leyte geothermal plants

By



MANILA, Philippines—The Power Sector Assets and Liabilities Management Corporation (PSALM) has started the selection process for Independent Power Producer Administrators (IPPAs) that will assume ownership of the Unified Leyte Geothermal Power Plants’ output. Bidding is set to take place in October this year.


At stake are rights to the “bulk energy” or smaller-sized output referred to as “strips of energy,” for which any qualified company can bid, PSALM president and CEO Emmanuel R. Ledesma Jr. said in a text message.


As such, the sale structure of the Unified Leyte IPPA encourages diversification in the market. “This bid is not just limited to generation companies, given that even distribution utilities, including electric cooperatives, and other interest groups can participate and win as well,” Ledesma said.


In an earlier published invitation to prospective bidders, PSALM said interested parties can participate in the tender for bulk energy.


An IPPA can win the rights to these “strips of energy” from the Visayas-based geothermal plants that range from 1 megawatt (MW) up to a maximum of 40 MW. PSALM explained that out of the 240-MW sum of strips, only 200 MW will be offered to IPPAs. The 40 MW, which will remain with PSALM, will serve as security capacity.


The IPPA for the bulk energy will have the rights to the capacity in excess of the 240-MW sum of strips. The obligation to trade the Unified Leyte power complex’s total output (bulk and sum of strips), as well as the necessary registration applications required by the Wholesale Electricity Spot Market, “shall lie solely with the IPPA for the bulk energy,” according to PSALM.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135919


Tags: bidding , Energy , Independent Power Producer Administrators , Philippines , PSALM , Unified Leyte Geothermal Power Plants



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:




seo tools

Consunji group expanding power generation business

By




DMCI Holdings president Isidro Consunji: Another power plant PHOTO FROM DMCIRESIDENCES.COM



MANILA, Philippines—Consunji-led conglomerate DMCI Holdings expects core earnings to decline this year with the reduction of its stake in water utility Maynilad Water Services Inc.


For future growth, DMCI is planning to expand its power generation business.


“We want to put up another power plant,” DMCI Holdings president Isidro Consunji told reporters.


At the same time, DMCI wants to participate in more infrastructure projects under the government’s public-private partnership program, whether as a proponent or a sub-contractor.


DMCI is considering bidding for the LRT-1 expansion program and will likewise bid for the construction contracts that will be offered by whoever will undertake the Cavite-Laguna expressway and the South-North Luzon connector roads.


“Although delayed, we believe the infrastructure development programs of the Aquino government via the PPP projects, will inevitably materialize. Your company is setting its sights on the construction and engineering of these initiatives,” Consunji said.


For its power generation business under Sem-Calaca Power Corp., the rehabilitation of two units has been completed. Also, the $450-million expansion of unit 1 of Calaca, which will be completed in 2014, is expected to boost fuel cost efficiency.


Overall, DMCI expects subsidiary Semirara Mining to post flat profit this year. Higher earnings from power generation are seen offsetting the impact of softer coal prices.


Semirara has started mine development activities at the Bobog area in Antique. This site is expected to be commercially available by 2014.


The mining unit has also taken the initial step of harnessing the value of clay, another abundant resource on the island, with the establishment of Semirara Claystone.


Semirara hopes to develop this business through the commercial production of brick stones, an alternative material for the construction industry. This new business, however, is not expected to become as big as the coal mining operations.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135911


Tags: Business , DMCI Holdings , electricity production and distribution , Energy , power generation



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:




seo tools

No rise in bread prices yet, says MalacaƱang

By




“There won’t be any price adjustment in Pinoy Tasty and Pinoy Pandesal because the DTI and the bakers and millers are still studying (this),” said presidential spokesman Edwin Lacierda on Wednesday. PHOTO FROM MARBYFOODVENTURES.COM.PH



MANILA, Philippines—There is no imminent increase in bread prices despite a threat against the importation of the lower-priced Turkish flour, MalacaƱang assured the industry on Wednesday.


“The bakers made a commitment that there won’t be any increase for now,” said presidential spokesman Edwin Lacierda.


Bakers’ associations have warned that the price of the two Filipino bread staples, pan de sal and “Tasty” bread, could go up because of the inability of importers to supply the industry with Turkish flour.


Flour importers have stopped importing Turkish flour because of the objections of the Philippine Association of Flour Millers (Pafmil) which has filed an antidumping case against the imports and petitioned for an increase of the tariff to 20 percent from the current 7 percent.


According to Lacierda, the Department of Trade and Industry (DTI) is working with several associations of flour millers and bakers into developing a “higher yielding” variety of “Harinang Pinoy,” a low-cost flour that local millers have developed as an alternative to imports.


The DTI has given itself two weeks to come up with a concrete plan to provide flour millers and bakers with an improved version of this alternative flour.


Until then, millers and bakers have promised not to increase the prices of these two bread types.


The Filipino-Chinese Bakery Association Inc. (FCBAI) and the Philippine Baking Industry Group (Philbaking) warned earlier that the price of the “Pinoy Tasty” would go up by about P3 to P4 per loaf from the current P37, while the cost of a 10-piece pack “Pinoy Pandesal” may increase by up to P2.


The groups said the inability of importers to supply Turkish flour was “a big concern to the bakers because this means that they will be forced to use the higher-priced local flour to produce breads, more particularly the Pinoy Tasty and Pinoy Pandesal.”


Produced by small neighborhood bakers, the Pinoy Tasty and Pinoy Pandesal refer to affordable brands of bread products that use the cheaper Turkish flour.


The Pafmil is opposed to imports of Turkish flour, which it said is being sold to the Philippines “at dumping prices in violation of World Trade Organization rules.” This, Pafmil claimed, puts local millers at a disadvantage.


As a result, the flour millers have filed a dumping case against the Turkish imports and petitioned for an increase in the tariff to 20 percent.


The Pafmil has developed the Harinang Pinoy as a low-priced alternative to imported flour but the FCBAI said it was of poor quality.


“Our members reported failures, up to 20 percent rejections, resulting in big losses,” said FCBAI president Benito Lim.


Many bakers refuse to use Harinang Pinoy as it does not provide as much yield as the Turkish flour, the bakers group said.


At a press briefing yesterday, Lacierda said the commitment of the millers was “to find ways to improve the yield of Harinang Pinoy, so they’re doing it right now and the bakers have committed that there won’t be any increase for now.”


“DTI is reviewing their suggested price but we’re looking already how the millers will improve the yield of Harinang Pinoy. There won’t be any price adjustment in Pinoy Tasty and Pinoy Pandesal because the DTI and the bakers and millers are still studying (this),” he said.


However, if plans to improve the yield of Harinang Pinoy fail, bakers will eventually have to use the more expensive brands of local flour which would in turn increase the prices of Pinoy Tasty and Pinoy Pandesal, he admitted.


He clarified that the price increase will only affect Pinoy Tasty and Pinoy Pandesal.


“Not all the bread prices will increase. We’re focused only on Pinoy Tasty and Pinoy Pandesal because these two types of bread use a different kind of flour called Harinang Pinoy,” Lacierda said.


He said there are still supplies of Turkish flour available in the market.


But with the dumping case against the Turkish flour imports, Turkish flour would also become expensive because additional duties would be imposed on them, Lacierda said.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135903


Tags: bread , Consumer Issues , food , Philippines , Pinoy Pandesal , Pinoy Tasty



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:




seo tools

PH ratings on shareholder protection

Point of Law By



Exactly a week ago, I spoke before the 10th Annual Corporate Governance Workshop jointly sponsored by Management Association of the Philippines (MAP) and Financial Executives Institute of the Philippines (FINEX).


The theme of the workshop was “Moving Beyond the Basics: Upgrading Corporate Governance Compliance and Practices, and Preparing for the 2015 Asean Integration.”


The topic assigned to me was “Emphasizing Protection of Shareholders’ Rights,” something close to my heart even before I became president of the Philippine Stock Exchange (PSE) in 2004.


I mentioned two relevant reports in the course of my presentation.


The first is the Global Competitiveness Index (GCI) report, which measures the competitiveness of countries around the world based on different criteria. It is published annually by the World Economic Forum (WEF). The WEF is best known for its annual meeting in Davos, a mountain resort in Switzerland. The meeting brings together some 2,500 top business and political leaders, intellectuals and journalists to discuss the most pressing issues facing the world.


In the 2008 GCI report, we ranked 54th in terms of protecting minority shareholders’ rights. After five years, however, our rank deteriorated to 57th place. Even newcomers Brunei and Cambodia outperformed us, based on the 2013 report. Brunei improved from 93rd to 36th place while Cambodia went up from 106th to 88th place over the same five-year period.


The second report is the Corporate Governance Watch (CG Watch), jointly produced by the Asian Corporate Governance Association (ACGA) and Credit Lyonnais Securities Asia Asia-Pacific Markets (CLSA). This report covers the broader area of corporate governance (CG), which includes protection of shareholders’ rights.


The report covers 11 Asian economies: China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand.


We placed 10th of 11 countries in 2007; we deteriorated further to last place in 2010.


The factors that contributed to our decline included: Regulators set a bar below the regional best practices; key personnel of the PSE associated with reform have left; the Securities and Exchange Commission (SEC) was not sufficiently resourced; and some listed companies appeared to be regressing in their CG practices.


In 2012, we regained our second-to-last position of 11 countries.


The contributing factors were: Commitment by President Aquino to good public governance; appointment of a new SEC chairman who “appears to mean business”; shifting oversight for the SEC from the Department of Trade and Industry to the Department of Finance; spin-off of the surveillance and enforcement division into a separate company under the Capital Market Integrity Corp. (CMIC); reinstatement of PSE’s minimum public float rules; and, emergence of CG-oriented civil society organizations.


Due to our penchant for backtracking, it did not come as a surprise that ACGA-CLSA raised the question: Can we sustain the improvement?


We can do it.


Our performance in the past definitely proves this. For example, the California Public Employees Retirement Fund (CalPERS), which is the largest investment fund in the United States and second-largest in the world, invests its funds in markets all over the globe. As part of its due diligence, it commissions a study on various economies to help it decide where to invest in. The study is known as the Permissible Public Equity Markets Investments Analysis prepared by Wilshire Consulting for CalPERS.


The study includes a segment that reflects the adequacy of shareholders’ rights in each market. A score of 1.0 (lowest) to 3.0 (highest) is assigned. High scores reflect strong regulations regarding shareholders’ rights.


In the 2007 CalPERS report, four Asean economies were included in the study—Indonesia, Malaysia, Philippines and Thailand. Singapore was not included because the study focused on emerging economies.


The Philippines outranked its Asean counterparts in terms of protecting shareholders’ rights. The Philippines scored 3.0 while the other Asean countries rated 2.3. Also, we learn from the WEF and ACGA-CLSA reports—which both show improvement over the prior years—that we can improve our ranking. In fact, we can even outrank our Asean neighbors, as shown by the CalPERS report.


To achieve this, our regulators and the private sector should work together, always mindful that the markets will see through pure rhetoric and will not accept anything less than real commitment to reform. We have to demonstrate that corporate governance is more than box-ticking, and genuinely embrace it as part of our corporate culture.


The question is: Do we have the political will to do it? Why not take the cue from President Aquino who has amply demonstrated commitment to good governance? Or, are we satisfied with the status quo and remain as cellar dwellers in the CG world?


The choice is ours to make. Better still, is there any choice for us?


(The author, former president and CEO of the Philippine Stock Exchange, is now co-managing partner and head of corporate and special projects department of Angara Concepcion Regala & Cruz Law Offices. The opinions expressed in this column are solely his own. He can be contacted at felim@accralaw.com.)


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135897


Tags: Asia , corporate governance , Corporate Governance Watch , Global Competitiveness Index , Philippines , Ratings



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:




seo tools

Wild ghost chase

Breaktime By



Certainly enjoying this titillating ruckus in media over the widespread corruption in the Bureau of Customs, or BOC, are the billionaires who made their piles through this lucrative business called smuggling.


To top it all, mainly because they have established their names in some legitimate businesses in different sectors of the economy, they already secured their places as upstanding, and perhaps even outstanding, citizens of this country.


They are the ones definitely relishing the ongoing wild goose chase of the Aquino (Part II) administration in the BOC, apparently to address what MalacaƱang indicated as the biggest reason behind the failure of the government to hit its revenue targets.


That is none other than the corruption in the BOC!


In business, the impression is that the administration seems to be obsessed only with the problems in the BOC. Nobody is saying that corruption, whether in BOC or in any other government offices like MalacaƱang and the executive departments, even including Congress and the judiciary, is always a two-way street.


Let us face it: If there is one single corrupt BOC official, there are several bribers in the private sector! It is possible that the focus by the government on BOC personnel was, perhaps, unintentional. But then again, it may be by design.


Understandably, this anti-BOC episode merely followed the line in the fourth Sona of our leader, Benigno Simeon (aka BS), who even revealed a specific figure—some P200 billion —as the amount of revenue foregone due to corruption in the BOC.


As a reaction to our dear BS’ public censure of the entire bureau, since he did not mention the names of the corrupt personnel there, Customs Commissioner Ruzzano Rufino Biazon supposedly offered to resign.


When our dear leader, BS, reportedly did not accept the resignation, it became clear that Ruzzano Rufino did not have the word “irrevocable” in his vocabulary.


He then wasted no time in announcing his latest move to cleanse the BOC: the across-the-board revamp of the BOC top positions. He ordered 54 collectors of the BOC to leave their positions—all in the best interest of providing service.


The frenzy in media—starting with the anti-BOC diatribe of our dear leader, BS, in the Sona, leading to Biazon’s offer to resign and the reaction of MalacaƱang to reject the offer, plus the ongoing indiscriminate revamp in the BOC—took an even wilder turn when a top BOC official complained about “powerful forces” behind the smuggling syndicates.


Those forces were presumably some politicos, the so-called padrinos, those strong backers of the supposedly corrupt top officials of the BOC, whose names, according to lawmakers, even MalacaƱang already knew a long time ago.


The boys in MalacaƱang took pains to deny media reports that Executive Secretary Paquito Ochoa Jr. was one of those backers, although they admitted that Ochoa recommended one person to the position of BOC deputy commissioner.


The boys in MalacaƱang also announced that the Office of the President already approved the proposal of the Department of Finance for one of its units to conduct lifestyle checks on BOC officials.


Really, now, are lifestyle checks on government officials not supposed to be an automatic pursuit of the DOF, particularly its unit called Revenue Integrity Protection Service, or the RIPS, which had always been the office on top of the BOC?


And the DOF needed an approval from our dear leader, BS, to do its job?


Anyway, the DOF and the RIPS—or even the entire bloated organization of the government—can do all the lifestyle checking that all our P2.3 trillion or so yearly budget of the republic can afford to finance, but they can hardly account for the P200 billion in duties and taxes that, according to the DOF itself, the BOC failed to collect.


It is as if all the profits from the widespread smuggling went into the bank accounts of BOC officials. The fact remains that the private businessmen—the actual smugglers—make all the real money. The BOC personnel get the equivalent of some loose change.


We are talking here of P200 billion, a lot of money, by any standard, and so the question still hangs: Where did all that money go?


While in the Senate, our lawmakers are saying that our dear leader, BS, actually knows the backers of the corrupt officials in the BOC. In the business sector, they are saying that the Aquino (Part II) administration knows all along the names of the biggest smugglers in this country.


Just who precisely are the biggest smugglers of fuel or of mobile phone units, or who is bringing into the country truckloads of imported cigarettes, may already be general knowledge in the business sector.


It is hard to believe that the government, with its P2.4-trillion yearly budget, can only be clueless on the identities of those hardcore smugglers.


Anyway, since so far the noise—either from MalacaƱang or from Congress—seems to be reserved for top BOC officials, including Ruzzano Rufino, it only serves right to spare those billionaire-smugglers from the harsh treatment of media.


Word going around in the business sector is that syndicates actually controlled the racket in the BOC, manipulating the bureau from the outside. It is said BOC officials now merely receive “monthly payments” from those syndicates.


The biggest racket in the BOC is no longer the bribe for every shipment, which is probably the level of corruption in the low ranks of the bureau. It is now a wholesale corruption, managed from the outside of the bureau.


Early in the year, the Aquino (Part II) administration has set the BOC collection target for 2013 at some P400 billion. Apparently because Ruzzano Rufino complained that it was too high a target, considering the slowdown in importation, the administration reduced the goal by P60 billion to P340 billion.


Indications point to another reduction in the BOC collection target for the rest of 2013, perhaps as a consolation to the customs chief humiliated by our dear leader, BS, in his latest Sona.


Still, the administration wants to keep its target for the budget deficit this year at some 2 percent of the GDP. It somehow needs to cover for the cut in the BOC collection. To do this, the administration now puts to task the Bureau of Internal Revenue.


As we all know, to bring up government revenue collection, the BIR is already close to the point of harassing the business sector—small and big enterprises alike—to cough up more tax payments, even if the particular business could not afford them.


We also know that those paying taxes to the BIR are really the legitimate businesses. Thus, they have to cover for the shortfall in the BOC collection, the P200 billion that the government could not collect from smugglers, who remain as “ghosts.”


In the meantime, those criminals are enjoying all this aimless chasing.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135885


Tags: Bureau of Customs , graft and corruption , Philippines , Smuggling , Trade



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:




seo tools

Gov’t urged to honor contracts


Public sector warned against ‘changing rules midstream’


By



The European Chamber of Commerce of the Philippines has urged the government to honor the sanctity of contracts and refrain from taking any action that may result in a “huge trust deficit.”


“The government has to understand that ‘trust’ is an asset it has to have. It’s precisely because of changing the rules midstream that investors are more and more reluctant to invest long-term,” explained Henry Schumacher, vice president for external affairs at the ECCP. “Who guarantees that the rules agreed with this administration will be honored by successive governments? Remember, PPPs (public-private projects) in infrastructure will last 25 years.”


The ECCP official cited as an example the case of water concessionaires Manila Water Co. Inc. and Maynilad Water Services Inc.


“The bashing that Manila Water and Maynilad Water went through recently in connection with their concession agreement with MWSS illustrates the difficulty in doing business with government. These billings have been in place for more than 15 years, were agreed to by MWSS in the concession agreement it signed with them in 1997, and which is effective up to 2022,” Schumacher said in a statement Wednesday. “After all these years, the MWSS suddenly found something wrong with the water charges. This controversy, another midstream change, will certainly end up in the Supreme Court.”


Schumacher also cited as an example the case of local energy developer San Roque Power Corp. The company has been fighting to get from the government what it was granted a decade ago: duty- and tax-free importation of capital goods.


According to Schumacher, San Roque Power represents many investors who may be short-changed by the government if the Supreme Court does not change its verdict to “progressive” from “retroactive.”


In February this year, the Supreme Court overturned the decision of the Court of Appeals, which allowed San Roque to receive a tax refund worth P483.8 million. In its decision, the high tribunal only noted that San Roque Power was ineligible to claim the refunds “based on technicalities.”


“Are there other examples? Yes,” Schumacher said, citing the review of the Mining Law and the attempt to change the Mining Fiscal Regime.


“Will new miners come? Unlikely. Will existing miners go? More likely,” he said. “The RP Energy case in Subic is another example. Infrastructure projects of national significance—as Luzon badly needs additional base-load plants—should be given priority and importance. They should be insulated from unfounded issues that only result in costly delays in the implementation of such projects.”


As it is, investors already expect to “navigate the country’s bad infrastructure, the rigid labor market, red tape and remaining pockets of corruption.”


Schumacher added that investors “are certainly not keen on tripping over the fine print of laws and implementing rules and regulations, and local power brokers with agendas at odds with Manila.”


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135879


Tags: Business , contracts , European Chamber of Commerce of the Philippines , Government , Philippines , trust deficit



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:




seo tools

PH stocks track regional decline





Local stocks tumbled Wednesday sharply alongside that of other regional markets as global markets awaited word from the US Federal Reserve.


The main-share Philippine Stock Exchange index slipped by 88.88 points, or 1.32 percent, to close at 6,639.12. All counters were in the red. But the most battered were the mining/oil and property sub-indices which both fell by over 2 percent.


Dealers said the markets were cautious ahead of the expected release of the US Fed’s statement on monetary policy at the end of a two-day meeting.


There were over three decliners for every single gainer at the local market. Value turnover amounted to P7.13 billion.


Megaworld fell by 4.14 percent. BDO, Petron and AGI also slumped by over 3 percent.


Among those that bucked the day’s decline was Bloomberry (+0.85 percent), which reported a turnaround to profitability in the second quarter.—Doris C. Dumlao


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135875


Tags: Finance , Philippines , Stock Activity , stocks



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:




seo tools

ING raises PH growth forecast for 2013

By



Dutch financial giant ING has raised its growth forecast for the Philippine economy, citing the country’s unexpected resilience in the face of weak global demand—a trait shared by few other markets in the world today.


Most emerging markets may experience a slowdown in capital inflow over the next several months, but the Philippines is still expected to perform better than its peers due to strong consumer spending, ING said.


However, policymakers will need to sustain this rate of expansion to ensure that the millions of Filipinos still living below the poverty line also benefit from the country’s bright prospects.


“All economic indicators, excluding trade, are good, and this will drive growth,” ING Philippines chief economist Joey Cuyegkeng said Wednesday.


ING expects the Philippine economy to post a growth rate of 7.8 percent in the second quarter of the year, matching its first quarter numbers.


“We will still beat China by the skin of our teeth,” Cuyegkeng said.


China, Asia’s largest economy, grew by just 7.5 percent in the three months to June.


For the whole of 2013, growth is expected to clock in at 7.3 percent, higher than the previous forecast of 6.1 percent issued last February.


ING’s forecast is above the government’s own growth target of 6 to 7 percent for the year.


Cuyegkeng said remittances from migrant workers, which support domestic demand, and the increase in government spending would drive the economy forward this year.


So far, the Aquino administration has brought up the country’s average annual growth to around 6 percent, Cuyegkeng said.


He said this was better than the 5 percent average recorded under the past three presidents.


Citing the challenges now facing the country, he urged the development of the local agriculture sector and manufacturing industry, which will lead to more jobs in the countryside and healthy growth levels that actually reduce the incidence of poverty.


Also, economic developments abroad now threaten the flow of foreign capital to the Philippines, ING said, referring in particular to the US Federal Reserve’s eventual tightening of monetary policies.


Fortunately for the Philippines, the expected foreign capital flight, brought on by the Fed decision, may be offset by the entry of P1.4 trillion into the country’s financial system. The amount will be drawn from the Bangko Sentral ng Pilipinas’ special deposit accounts. Cuyegkeng said this would benefit local businesses by reducing their borrowing costs.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135871


Tags: economy , forecasts , ING , Philippines



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:




seo tools

Trade costs threaten Asean integration


Experts urge significant reduction of non-tariff barriers


By



PUTRAJAYA, Malaysia—The supposed integration of Southeast Asian economies by 2015 is being threatened by high non-tariff costs of importing and exporting goods within the region that member countries, including the Philippines, have so far failed to ease.


This was according reports of the Association of Southeast Asian Nations (Asean) secretariat, which noted that although tariffs on most products have been reduced over the past years for the benefit of intra-regional trade, non-tariff barriers remain significant.


Substantial reduction, if not total elimination, of non-tariff costs to trade is one of the pre-requisites of regional integration. Its proponents have said that the free flow of goods is necessary to boost trade, which in turn is aimed at achieving the overarching goal of increasing incomes.


The report, titled “Asean Brief 2012,” said the non-tariff costs, which member-countries are urged to reduce, include documentation fees, administrative fees for customs clearance, customs broker fees and terminal handling charges, among others.


“Barriers to integration still exist, slowing down the integration process and preventing the economic gains of integration to be shared more effectively,” the report said.


Figures from the report showed that the average non-tariff cost of importing goods from Asean countries rose from $435 per 20-foot container in 2005 to $2,035 in 2010. More current data are still being compiled, but the average figure is believed to have continued to rise since 2010.


Reflecting a similar trend, the average non-tariff cost of exporting goods rose over the same period from $450 per 20-foot container to $1,880.


The report noted that the non-tariff costs of importing and exporting goods within the region have declined from 2005 to 2010 in real terms (or when inflation is factored out). However, it stressed, the reduction was minimal.


Meantime, the report showed an increase in intra-regional trade over the past years.


In particular, exports by member countries to each other more than doubled from $141 billion in 2004 to $328 billion in 2011. Similarly, imports also more than doubled from $120 billion to $271 billion over the same period.


Asean integration proponents, however, believe there remains substantial room for growth in intra-regional trade. They believe trade could have increased by a much faster rate if the non-tariff costs of importing and exporting goods had been reduced.


“Ongoing barriers to trade… hinder the process of integration, and thus, the scope of the region to benefit more rapidly,” the report said.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135867


Tags: ASEAN , Asean integration , non-tariff barriers , Trade



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:




seo tools

Traditional PH retailers challenged by e-commerce

By



Philippine retailers are now facing “challenging” times with the influx of foreign brands, the rising popularity of e-commerce, and the changing, more sophisticated preferences of consumers.


“[At] no other time has the Filipino consumer been inundated by so many choices,” noted Paul Santos, overall chair of the upcoming 22nd National Retail Conference.


In a briefing Tuesday night, Santos explained that e-commerce alone—where goods and services can readily be purchased over the Internet—may soon hurt the local retail sector. Also affecting retailers is a phenomenon called “showrooming.”


Showrooming occurs when an online seller takes photos of items within a “brick and mortar” shop, posts these on the websites, and sells items at a lower price.


Santos, however, noted that e-commerce sales last year continued to be marginal at roughly 3 percent at most of total retail sales in the country. E-commerce is more prevalent and applicable for other purchases like booking a hotel or a flight.


“We’re not that affected yet but [e-commerce] is starting to grow. There’s a lot of room for growth,” he further said.


Margaret Martinez, retail services director of GfK Asia Pte. Ltd., further stressed the need for local retailers to know how to keep up with the times, and how both the consumers and the landscape are changing.


Follow Us


Recent Stories:


Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=135863


Tags: Business , e-commerce , Philippines , Retail , Trade



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:




seo tools

Today's Video Update: The Month of July Provided Solid Returns For Investors


Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 31st of July.


What a month, with the DOW (INDEX:DJI) rallying to its highest level ever on the last day of the month. The NASDAQ (NASDAQ:COMP), not wanting to be left out of the parade, moved to its highest level in 13 years. The S&P (CME:SP500) also put in a solid monthly return of 5.50% for investors. Happy days are here again, as most investors were all smiles and happy to see that their portfolios and retirement account were looking a little bit better than last month.


Even the long suffering gold bulls had something to smile about as the longer-term bear market in gold managed to shake off some of its bearishness and rally. Gold closed out the month of July with a solid gain of 7.4%. Crude oil, which is in a bull market, followed right along producing gains of 7.50%.


The party continued for stocks with many making positive gains in July. Even battered and beaten down Apple (NASDAQ:AAPL), which has been under pressure lately, managed to rally over 13.5% for the month. In fact, a close today in Apple over 450.37 will be the highest monthly close we've seen in this stock in over six months.


In the currency wars, the US dollar lost out again to the Euro, moving down 1.8% and closing at its lowest monthly close since January.


With July almost behind us, I look forward to seeing what August has in store for the market. Traditionally, August is a quiet month, as folks take off and enjoy the last days of summer before serious business resumes after Labor Day. This August could be the exception to the rule, as this market has been the exception to the rule all year long.


Now let's take a look at some of those trends and the markets we have been discussing today.


Recent Special Videos:

Amazon (NASDAQ:AMZN)

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)


Have a great trading day,

Adam Hewison

President, INO.com

Co-Creator, MarketClub


Bloomberg BNN CNBC FOX


Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.



news