Oil prices fall further in Asia

Agence France-Presse

12:09 pm | Friday, August 1st, 2014

SINGAPORE — Oil prices fell further in Asia Friday following a sell-off on Wall Street and concerns about unplanned refinery shutdowns in the US midwest, analysts said.

US benchmark West Texas (WTI) Intermediate for September delivery eased 19 cents to $97.98 while Brent crude for September was down 13 cents to $105.89 in mid-morning trade.

WTI fell $2.10 in New York trade and Brent declined 49 cents in London on Thursday.

“Oil prices are under pressure at the moment after heavy selling on Wall Street,” Michael McCarthy, market strategist at CMC Markets in Sydney, told Agence France-Presse.

The equities sell-off has been attributed to a range of factors, including weak European inflation data, the Argentine default and softer US corporate earnings.

The Dow Jones Industrial Average tumbled 1.88 percent to 16,563.30, erasing all its gains since the end of 2013.

Analysts said oil prices were also pressured by reports that a number of oil refineries in the US midwest were experiencing outages.

The concern is that crude inventories will build at the closely-watched Cushing, Oklahoma oil-trading hub where WTI is priced, with the supply glut dampening prices.

The outages come ahead of planned maintenance in September at many refineries as the summer travel season ends.

The outages are seen to have a greater impact on WTI prices. Brent crude is more leveraged to the international oil market.

French bank Credit Agricole said investors are also awaiting the release of the July US labour market report for clues about the state of the world’s biggest economy.

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Study traces dinosaur evolution into early birds

This undated artist rendering provided by the journal Science shows the dinosaur lineage which evolved into birds shrank in body size continuously for 50 million years. AP FILE PHOTO

WASHINGTON — Scientists have mapped how a group of fearsome, massive dinosaurs evolved and shrank to the likes of robins and hummingbirds.

Comparing fossils of 120 different species and 1,500 skeletal features, especially thigh bones, researchers constructed a detailed family tree for the class of two-legged meat-eaters called theropods. That suborder of dinos survives to this day as birds, however unrecognizable and improbable it sounds.

The steady downsizing and elegant evolution of the theropods is detailed in the journal Science on Thursday.

“They just kept on shrinking and shrinking and shrinking for about 50 million years,” said study author Michael S. Y. Lee of the University of Adelaide in Australia. He called them “shape-shifters.”

Lee and colleagues created a dinosaur version of the iconic ape-to-man drawing of human evolution. In this version, the lumbering large dinos shrink, getting more feathery and big-chested, until they are the earliest version of birds.

For a couple decades scientists have linked birds to this family of dinosaurs because they shared hollow bones, wishbones, feathers and other characteristics. But the Lee study gives the best picture of how steady and unusual theropod evolution was. The skeletons of theropods changed four times faster than other types of dinosaurs, the study said.

A few members of that dino family did not shrink, including T. rex, which is more of a distant cousin to birds than a direct ancestor, Lee said.

He said he and colleagues were surprised by just how consistently the theropods shrank over evolutionary time, while other types of dinosaurs showed ups and downs in body size.

The first theropods were large, weighing around 600 pounds (270 kilograms). They roamed about 220 million to 230 million years ago.

Then about 200 million years ago, when some of the creatures weighed about 360 pounds (165 kilograms), the shrinking became faster and more prolonged, the study said. In just 25 million years, the beasts were slimmed down to barely 100 pounds. By 167 million years ago, 6-pound (3-kilogram) paravians, more direct ancestor of birds, were around.

And 163 million years ago the first birds, weighing less than two pounds, probably came on the scene, the study said

Paul Sereno, a dinosaur researcher at the University of Chicago who wasn’t part of this study, praised Lee’s work as innovative.

The steady size reduction shows “something very strange going on,” Sereno said. “This is key to what went on at the origin of birds.”

People may think bigger is better, but sometimes when it comes to evolution smaller can be better because bigger creatures are more likely to go extinct, Sereno said.

And when the theropods started shrinking there weren’t many other small species that would compete with them, Lee said.

“The dinosaur ancestors of birds found a new niche and a new way of life,” Lee said.

Sereno added, “When you are small, it’s a totally different ball game. You can fly and glide and I think that’s what drove it.”

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Robinsons moves to tap healthy consumers

ROBINSONS Supermarket Galleria’s newly-renovated Gourmet Deli Section

Maybe only the health conscious would notice that the entrance of every Robinsons Supermarket is littered with fresh fruits and vegetables instead of the usual groceries. This is not just a mere marketing campaign but an advocacy to promote healthy lifestyle among its loyal consumers.

“We take pride in promoting the habit of healthy eating to customers,” says Jody Gadia, general manager of Robinsons Supermarket. “Taking this route is our way of differentiating ourselves from other retailers.”

“Healthy You” is Robinsons Supermarket’s healthy segment which also bears the brand.

“‘Healthy You’ comprises only about 1 to 1½ percent of our sales but it is growing at least 20 percent every year,” Gadia says.

“We have a larger commitment to the Filipino consumers to be able to improve their health and wellness,” Gadia says, “We decided to take it to the next level by actively promoting and engaging them and our partners.”

The company sought a partnership with the Department of Science and Technology’s Food and Nutrition Research Institute (FNRI) to evaluate the goods the supermarket will carry.

“All of our products passed through FNRI,” Gadia explains. “They evaluate the items whether these are healthy or nutritious items.”

FNRI has standards to classify a product as healthier than the others. Gadia also explains that when a product meets at least three of those eight standards, they would automatically go to the Healthy You section of the supermarket.

“We also encourage our suppliers to produce more healthy products so that they can be evaluated,” says Aja Totanes, assistant marketing manager for Wellness of Robinsons Supermarket. “They get a free space in the health and wellness section aside from the usual space they have in the regular section. That way, we get to highlight their products and brands.”

It is easy to find the supermarket’s health and wellness section and products. Just look for the green label, which tells consumers that these products passed the FNRI standards for healthy food.

Totanes says that not all consumers actually read the nutrition labels so the green tag makes it easier for them, the mothers especially, to choose which ones to purchase.

Aside from all these, the supermarket is also engaging its well-meaning vendors by coming up with promotions such as BMI check or bone scanning to promote health and wellness.

“These activities help consumers realize that either they need to lose weight or make better health choices,” Totanes says.

Robinsons is currently holding “Freshtival,” a month-long celebration in time for July as Wellness Month.

“We want consumers to have access to products that offer the best value for their money and are good for their health,” Gadia says. “And since we have a strong commitment for wellness, we figured that it would be of great service to bring in products that are in line with this thrust.”

“Freshtival” features different types of fresh fruits and vegetables, meat products, seafood, deli products, and food-to-go selections at promotional prices. It also features global brands that are known to provide fresh and high-quality food items.

In line with this, the supermarket also opened its new deli gourmet section featuring different types of cheese and cold cuts.

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Asian shares mostly up on China manufacturing data

A man looks at an electronic stock board of a securities firm in Tokyo, Thursday, July 24, 2014. Asian markets mostly rose Thursday as an index of Chinese manufacturing activity hit an 18-month high in July, boosting hopes for the world’s No. 2 economy, as concerns over the Ukraine crisis eased. AP PHOTO/EUGENE HOSHIKO

HONG KONG–Asian markets mostly rose Thursday as an index of Chinese manufacturing activity hit an 18-month high in July, boosting hopes for the world’s No. 2 economy, as concerns over the Ukraine crisis eased.

The euro fell to fresh multi-month lows against the dollar and yen as investors fretted over the impact of sanctions on Russia over its links to rebels in Ukraine who have been blamed with shooting down a Malaysian airliner.

Shanghai rallied 1.28 percent, or 26.57 points, to 2,105.06 and Hong Kong jumped 0.71 percent, or 169.63 points, to 24,141.50.

Sydney recorded its seventh straight gain, rising 0.20 percent, or 11.1 points, to close at 5587.8.

But Tokyo slipped 0.29 percent, or 44.14 points, to 15,284.42 and Seoul ended marginally lower, dipping 1.70 points to end at 2,026.62.

Banking giant HSBC said its preliminary purchasing managers index of manufacturing activity for this month jumped to 52.0 from a final reading of 50.7 in June.

The result suggests a recent slate of small stimulus measures by the government is gaining traction.

Anything above 50 points to growth and a number below suggests contraction in the Asian economic giant and key driver of regional and global growth.

“Economic activity continues to improve in July, suggesting that the cumulative impact of mini-stimulus measures introduced earlier is still filtering through,” HSBC economist Qu Hongbin said in a statement.

“We expect policy makers to maintain their accommodative stance over the next few months to consolidate the recovery.”

Euro suffers fresh selling

The news helped support an uptrend in markets as they recover from Friday’s losses that were fueled by the downing of MH17 in Ukraine.

The tragedy, which killed almost 300 people, has been blamed by the United States on pro-Russian rebels fighting the Ukraine government, raising the prospect of an international crisis.

Those fears eased on Tuesday when the militants, who had swarmed the crash site, handed over the black box recorders and allowed the bodies of the victims to be moved.

However, Moscow still faces strict economic sanctions for its support of the rebels, in turn stoking concerns for the eurozone economy, which relies heavily on Russian energy imports, and hitting the euro.

The single currency fell to an eight-month low $1.3445 in afternoon Tokyo trade and a five-month low of 136.45 yen. That compares with $1.3462 and 136.62 yen late in New York.

The dollar was at 101.45 yen against 101.48 yen in New York.

Wall Street provided a mixed lead, with the S&P 500 edging up 0.18 percent to a new record thanks to a jump in Apple but the Dow dropped 0.16 percent, hit by a hefty fall in Boeing. The Nasdaq rose 0.40 percent.

On oil markets US benchmark West Texas Intermediate for delivery in September was down 39 cents at $102.73 a barrel in the afternoon. Brent crude eased 32 cents to $107.71.

Gold fetched $1,298.30 an ounce by 1307 GMT compared with $1,307.17 late Wednesday.

In other markets:

– Taipei rose 0.30 percent, or 28.18 points, to 9,527.54.

Taiwan Semiconductor Manufacturing Co. added 0.4 percent to Tw$125.0 while smartphone maker HTC fell 0.35 percent to Tw$141.0.

– Wellington gained 0.55 percent, or 28.18 points, to 5,174.71.

Fletcher Building was up 0.88 percent at NZ$9.15 and Telecom advanced 1.03 percent to NZ$2.93.

– Manila ended marginally lower, dipping 3.03 points to 6,889.89.

Metropolitan Bank and Trust fell 1.36 percent to 87.30 pesos while Alliance Global Group dropped 1.11 percent to 26.70 pesos.

– Jakarta ended up 0.11 percent, or 5.41 points, at 5,098.64.

State-controlled miner Aneka Tambang gained 11.45 percent to 1,265 rupiah, while retailer Hero Supermarket slipped 4.03 percent to 2,855 rupiah.

– Kuala Lumpur gained 0.28 percent, or 5.22 points, to 1,877.05.

British American Tobacco ended 1.9 percent higher at 69.84 ringgit while Malaysia Airports Holdings shares lost 6.2 percent to 7.60 ringgit.

– Singapore rose 0.39 percent, or 13.19 points, to 3,353.89.

Singapore Telecom finished at Sg$4.0, up 0.25 percent, and farm commodities supplier Olam International climbed 1.6 percent to end at Sg$2.57.

– Bangkok added 0.15 percent, or 2.36 points, to 1,543.92.

Coal producer Banpu gained 4.76 percent to 33 baht, while Thai Tap Water soared 5.83 percent to 12.70 baht.

– Mumbai rose 0.48 percent, or 124.52 points, to 26,271.85.

Financial Technologies India gained 10 percent to 365.75 rupees and UCO Bank added 5.83 percent to 107.95 rupees.

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Asian shares extend gains on Wall St. rally

A man watches an electronic stock indicator in Tokyo, Tuesday, July 22, 2014. Asian markets mostly rose Wednesday, adding to the previous day’s rally, following a positive lead from Wall Street while concerns over the Ukraine air crash crisis ease. AP PHOTO/SHIZUO KAMBAYASHI

HONG KONG–Asian markets mostly rose Wednesday, adding to the previous day’s rally, following a positive lead from Wall Street while concerns over the Ukraine air crash crisis ease.

The euro was wallowing at multi-month lows against the dollar and yen as the West considers another round of sanctions against Russia for its support of Ukrainian rebels who have been accused of shooting down Malaysia Airlines flight MH17 on Thursday.

Sydney rose 0.6 percent, or 33.41 points, to close at 5,576.7 and Shanghai added 0.15 percent, or 3.01 points, to 2,078.49, while Hong Kong put on 0.80 percent, or 189.76 points, to 23,971.87.

However, Seoul was marginally lower, giving up 0.61 points to finish at 2,028.32 while Tokyo slipped 0.10 percent, or 14.72 points, to 15,328.56 as a stronger yen weighed on exporters.

Jakarta rose 0.50 percent a day after officials declared business-friendly and reform-minded Joko Widodo the winner of the country’s tight presidential election.

Global markets rebounded on Tuesday on news that pro-Russian rebels had handed over the black boxes from the Malaysian passenger jet that came down in eastern Ukraine with the loss of almost 300 people.

US shares were given an extra boost by data from the National Association of Realtors that showed sales of existing homes in June accelerated 2.6 percent to their fastest pace since October. The figures are a boon for the economy, with the property sector a key component.

The Dow rose 0.36 percent, the S&P 500 gained 0.50 percent and the Nasdaq added 0.71 percent.

Also Tuesday, the Labor Department said inflation slowed to 0.3 percent in June from 0.4 percent in May.

The news will do little to add pressure on the Federal Reserve to raise interest rates sooner than the expected mid-2015 range. The Fed holds its next policy meeting on July 29-30.

Russia sanction threat hits euro

On currency markets, the euro came under pressure as investors worry about the effects of another round of expected sanctions on Russia, which has been blamed with supplying anti-Kiev militants in Ukraine.

With the eurozone heavily reliant on its giant eastern neighbor for energy supplies, there are fears the bloc’s already fragile economy could suffer as a result of any new measures against Moscow.

The single currency hit an eight-month low of $1.3458 in Tokyo Wednesday–down from $1.3463 in New York–before edging back up to $1.3461.

It also dipped to 136.44 yen–its lowest since February–after closing in the US at 136.62 yen in US trade.

The dollar fetched 101.39 yen compared with 101.45 yen in New York.

Oil prices were lower. US benchmark West Texas Intermediate (WTI) for September delivery was down 33 cents at $102.06 a barrel in afternoon trade on the contract’s first day of trading. Brent crude declined 12 cents to $107.23.

Gold fetched $1,307.17 an ounce by 1050 GMT compared with $1,306.89 late Monday.

In other markets:

– Wellington rose 0.25 percent, or 12.66 points, to 5,146.53.

Telecom was up 1.93 percent at NZ$2.90 and Warehouse Group eased 0.96 percent to NZ$3.08.

– Manila ended 0.33 percent higher, adding 22.98 points to 6,892.92.

Universal Robina Corp. rallied 4.75 percent to 165 pesos as the exchange lifted its suspension on trading after the food giant announced Monday that it was buying New Zealand snack-maker Griffin’s for $610 million. Alliance Global Group gained 0.93 percent to 27 pesos.

– Taipei was closed because of Typhoon Matmo.

– Mumbai advanced 0.47 percent, or 121.53 points, to close at 26,147.33 points.

Financial Technologies India surged 9.99 percent to end at 332.50 rupees and tyre maker MRF rose 7.27 percent to end at 24,651.10 rupees.

– Bangkok added 1.36 percent, or 20.75 points, to 1,541.56.

Coal producer Banpu rose 3.28 percent to 31.50 baht, while Siam Cement gained 2.20 percent to 464 baht.

– Singapore advanced 0.72 percent, or 23.79 points, to close at 3,340.70.

United Overseas Bank rose 1.31 percent to end at Sg$24.04 and Singapore Airlines finished 0.19 percent lower at Sg$10.55.

– Jakarta rose 0.19 percent, or 9.71, to 5,093.23.

Mobile phone provider Indosat rose 1.01 percent to 4,000 rupiah, while car maker Astra International fell 0.32 percent to 7,700 rupiah.

– Kuala Lumpur’s main index edged up 0.47 points, or 0.03 percent, to 1,871.83.

MISC added 1.7 percent to 6.63 ringgit while UMW Holdings gained 0.9 percent to 11.62. Malaysia Airlines shares slipped 2.2 percent to 0.225 ringgit.

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US stocks end lower as Ukraine, Gaza weigh on markets

US stocks finished lower Monday, July 21, 2014, as geopolitical worries weighed on sentiment during the first trading session of a busy week of corporate earnings reports. AP FILE PHOTO/MARK LENNIHAN

NEW YORK–US stocks finished lower Monday as geopolitical worries weighed on sentiment during the first trading session of a busy week of corporate earnings reports.

The Dow Jones Industrial Average dropped 48.45 points (0.28 percent) to 17,051.73.

The broad-based S&P 500 declined 4.59 (0.23 percent) to 1,973.63, while the tech-rich Nasdaq Composite Index fell 7.44 (0.17 percent) to 4,424.70.

All three indices rallied significantly from morning declines that took the S&P 500 as low as 1,965.77.

Western powers have ratcheted up the pressure on Russia over the apparent shooting down of a Malaysian passenger jet over rebel-held east Ukraine, with the US insisting that Moscow force pro-Russian insurgents to cooperate with an international probe into the disaster.

Meanwhile, the death toll continued to rise in Gaza, where Israel has undertaken a ground assault against Hamas.

“The market is high and has been very strong,” said Mace Blicksilver, director of Marblehead Asset Management. “But there are a lot of problems around too.”

Markets were awaiting a stream of major earnings news, including reports early Tuesday from Coca-Cola, DuPont and McDonald’s. Apple and Microsoft were to make their announcement after the market closes Tuesday.

Oil-services company Halliburton gained 0.1 percent after net income for the second quarter rose 20 percent to $774 million and the company announced it had authorized $4.8 billion in additional stock repurchases.

Pharmaceutical company Allergan, which is fighting off an unsolicited takeover bid by Valeant Pharmaceuticals International, announced it was cutting 1,500 employees, about 13 percent of its workforce, plus another 250 vacant positions. Shares rose 2.2 percent.

Fast-food chains McDonald’s and Yum Brands were under pressure as Shanghai officials shut a food supplier to the companies because of allegations workers at a factory mixed expired meat with the fresh product. Dow component McDonald’s lost 1.5 percent, while Yum, which owns the KFC chain, dropped 4.3 percent.

Herbalife, a nutritional products marketer, tumbled 11.2 percent as activist investor William Ackman of Pershinq Square Capital Management announced a presentation Tuesday to outline charges of fraud against the company.

The company dismissed Ackman’s criticism as “an attempt to manipulate Herbalife’s stock price for Pershing Square’s financial gain,” according to an Herbalife statement last week.

Bond prices rose. The yield on the 10-year US Treasury dipped to 2.47 percent from 2.48 percent Friday, while the 30-year fell to 3.26 percent from 3.29 percent. Bond prices and yields move inversely.

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Manila Hotel–then and now

THE MANILA Hotel has served as witness to many of the country’s momentous events.

From the many secrets its walls used to hold, to the beautiful bay sunsets, its inspiring historied past and modern twists, Manila remains to be a city to reckon with.

Indeed, the City of Manila continues to be relevant to the pressing demands of both the old and new generations, remaining to be the political and economic heart of the country, without losing that elegant, rustic charm that has drawn many foreign and local tourists, investors and ambitious minds alike.

One establishment has remained witness to Manila’s dynamic and colorful past, serving as the perfect landmark for a city that has played a huge role in defining the country’s rich history.

BY CONTINUOUSLY improving its facilities, Manila Hotel has managed to remain relevant to today’s market.

Manila Hotel, for one, has proven to be more than just a luxury establishment, having housed many notable personalities the likes of General Douglas MacArthur, heads of various states, and even celebrities, over the past decades—thus making it a unique and exciting destination, says the hotel’s executive vice president Enrique Yap.

Yap—who joined Manila Hotel nine years ago and previously worked under the direct supervision of the hotel’s former chair, the late Don Emilio Yap—was well aware that keeping the Manila Hotel brand afloat would be quite a challenge. This was amid the influx of new hotels in other cities across the country.

“One has to understand that Manila used to be the country’s center with the Hotel at the heart of the historical quarter. The biggest and richest families lived and partied here,” Yap explains.

“However, as with other major cities around the world, development has moved to the other areas outside of the capital. The center of commerce eventually moved to Makati—taking both big businesses and influential people away from Manila. Over time, Manila has become part of the periphery of what is now considered the country’s center,” he further shares.

The challenge now, according to Yap, lies on how the Manila Hotel would be able to create reasons for people to travel the additional 10 or 12 kilometers from Makati to the end of Roxas Boulevard where Manila Hotel is located. He however stresses that the hotel’s location is actually one of its prime advantages.

“Our bayside location and proximity to areas like the Rizal Park allow us to host huge events like the recently concluded Shell Eco-Marathon Asia 2014, which would have faced difficulty if it were held in a more densely populated area,” he says.

THE HOTEL has various dining places to satisfy guests’ discerning palate.

To address the changing and more demanding needs of the market, Manila Hotel has started to implement new programs, and other innovative measures to steer forward the “Grand Dame” and ensure that this national heritage will be able to keep up with new and more modern hotels.

Yap explains that Manila Hotel’s physical transformation started a few years ago when its tower and the Café Ilang Ilang were renovated. This was then followed by last year’s changes at the Centennial Hall. The Fiesta Pavilion, the Maynila Ballroom and the Millennium Salon, he adds, will likewise undergo similar changes this year.

“It’s a matter of repurposing spaces—making them smarter and more efficient so that they contribute to our guests’ overall experience. We have also changed the look of our service teams, as they now wear colonial period-inspired costumes that tell the hotel’s story and the country’s heritage,” Yap shares. “Regardless of how we look, guests are assured that our facilities and amenities are modern to meet and even exceed their requirements.”

Currently at the helm of running hotel operations, Yap explains that the most crucial task for now would be the challenge of differentiation, as the hotel needs to stand out in such a competitive industry where more chain and boutique hotels are being established.

“Today’s customers have evolved. Their expectations on their experiences have changed over time. Clearly, guests did not need high-speed Internet access in the ’30s nor did they require Wi-Fi for their smartphones. They take better care of themselves now, thus the need to provide healthier choices and activities,” Yap says.

MANILA Hotel’s executive vice president Enrique

“Even the chain of business has changed, as guests use the Internet in booking and arranging their stay directly with their hotel of choice. The rebranding initiatives have been put in place so that we strengthen our brand while becoming more responsive to changing customer preferences. We have realized that we have been unable to make full use of our heritage to our advantage and efforts are already underway to enhance what the Hotel has at its core,” he further explains.

But despite all these challenges, Yap admits that managing a heritage brand such as Manila Hotel also has its rewards.

“The Manila Hotel has long been established before the family started to manage it and it will remain a part of the country’s history long after I have gone. We are working toward making the hotel a globally admired establishment again where exemplary celebrations are held. Ultimately, our goal is for the hotel to be a source of pride for all Filipinos,” he relates.

“In terms of how ‘rewarding’ it is to be part of the Manila Hotel brand, we often liken it to owning a Patek Philippe—you don’t really own it, you are merely taking care of it for the next generation. My role is to keep the hotel relevant with today’s dynamic environment and hopefully my son can take over after 20 or so years,” Yap concludes.

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To Trade Successfully, You Must Trade With The Trend

In life, trends are all around us and you only have to look at the weather to know that’s true. It's a pretty safe bet that temperatures will be colder in December than they will be in August, at least in the Northern Hemisphere. Trends also persist in the marketplace, but unlike the weather, these are moving trends and change year to year. As a trader and investor, you want catch the trends near a top or bottom.

Learn more about trading the trend here .

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PSEi rises despite ‘Glenda’ toll

By Doris C. Dumlao |Philippine Daily Inquirer

6:14 pm | Thursday, July 17th, 2014

Philippine Stock Exchange. AFP FILE PHOTO

MANILA, Philippines—The local stock barometer firmed up on Thursday as good tidings from Wall Street prevailed over the havoc wreaked by typhoon “Glenda” (Rammasun) over Luzon in the past two days.

The main-share Philippine Stock Exchange index added 33.32 points or 0.49 percent to close at 6,867.36 notwithstanding a typhoon that left at least 20 people dead.

All counters ended in positive territory led by the mining/oil counter, which went up by 1 percent.

Value turnover for the day amounted to P7.69 billion. There were 88 advancers that edged out 81 decliners while 50 stocks were unchanged.

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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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Philippine markets closed

Southern Mindanao has new regional police commander

Google+ abandons need to use real names

Sandra Bullock’s encounter with stalker described

‘Glenda’ knocks down lines, hits power plants; Southern Tagalog, Bicol powerless

European Union assures PH help amid ‘Glenda’ onslaught

Philippine markets closed

Mayer ‘not satisfied’ as Yahoo results disappoint

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Mayer ‘not satisfied’ as Yahoo results disappoint

Yahoo CEO Marissa Mayer. AP FILE PHOTO

SAN FRANCISCO – Yahoo said Tuesday profit in the past quarter fell from a year ago, prompting chief executive Marissa Mayer to declare “we are not satisfied.”

Net profit in the second quarter dropped 19 percent from a year ago to $270 million, in results weaker than expected.

Revenue meanwhile fell four percent to $1.08 billion, also below analyst expectations.

“Our top priority is revenue growth and by that measure we are not satisfied with our Q2 results,” Mayer said in a statement nearly two years after being named to head the Internet pioneer.

She noted that “several areas showed strength,” but that other segments such as display advertising lagged.

These are trends “further highlighting the fact that we need to work faster to ameliorate the negative trends,” Mayer said.

“I believe we can and will do better moving forward. Overall, I remain confident in Yahoo’s future, our strategy, and our return to long-term growth.”

Yahoo also said it had reached an agreement with Alibaba to sell fewer shares than anticipated when the Chinese online giant makes its market debut.

The deal reduced the number of shares Yahoo will sell from 208 million shares to 140 million.

Chief finance officer Ken Goldman said that the majority of the proceeds of the sale of Yahoo’s stake would be returned to shareholders.

“We would like to take this opportunity to let our investors know that we are committed to return at least half of the after-tax IPO proceeds to shareholders, in line with our overarching commitment to maximizing shareholder value through prudent capital allocation,” he said in the earnings statement.

Yahoo holds a stake of around 22 percent in the Chinese group, which has announced plans for a US initial public offering.

Yahoo said that in the past quarter it made gains in search-related advertising and other online advertising which helped offset the decline in display ad revenues.

But analysts have pointed out that Yahoo is losing momentum in key areas of online advertising, as the one-time Internet star seeks to redefine itself with new services such as video, music, blogs and more.

According to the research firm eMarketer, Microsoft is expected to overtake Yahoo for the first time in digital advertising revenues.

The survey by eMarketer represents a setback for Yahoo’s effort to return to its glory days as an Internet pioneer.

The report said Google will extend its domination of the global digital ad market this year, with a 31.45 percent market share, while Facebook will see its share grow to 7.79 percent.

Yahoo’s ad revenues will increase by around 2.7 percent to $3.53 billion, but its growth will be

slower than the rest of the fast-growing sector, eMarketer said.

Microsoft meanwhile is expected to see 20 percent growth in ad revenues to $3.56 billion, for a 2.54 percent market share.

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Fed report sends Nasdaq lower; Dow edges higher

In this file photo, American flags fly in front of the New York Stock Exchange in New York. US stocks Tuesday, July 15. 2014, finished mostly lower with the Nasdaq dropping more than 0.5 percent after the Federal Reserve warned that some technology stocks appear to be overvalued. AP/Mark Lennihan

NEW YORK–US stocks Tuesday finished mostly lower with the Nasdaq dropping more than 0.5 percent after the Federal Reserve warned that some technology stocks appear to be overvalued.

The Dow Jones Industrial Average inched up 5.26 points (0.03 percent) to 17,060.68, while the S&P 500 fell 3.82 (0.19 percent) to 1,973.28.

The biggest losses came in the tech-rich Nasdaq Composite Index, which slumped 24.03 (0.54 percent) to 4,416.39.

Nasdaq fell as low as 4,389.70 earlier in the session after a Fed report to Congress said smaller stocks in social media and biotechnology “appear substantially stretched.”

The report was released in conjunction with congressional testimony by Fed Chair Janet Yellen, who said the central bank could implement interest rate increases “sooner and be more rapid than currently envisioned” if labor market conditions continue to improve more than expected.

Art Hogan, chief market strategist at Wunderlich Securities, said Yellen’s remarks on interest rates were “different” than what he expected and “sort of got my attention.”

Otherwise, Yellen “pretty well stuck to the script,” he said, noting that Yellen emphasized that the timeframe on raising rates was entirely data-dependent.

Leading technology and biotech names dropped, including Amgen (-1.8 percent), Biogen (-2.4 percent), Facebook (-1.1 percent), Tesla Motors (-3.1 percent) and Yelp (-2.9 percent).

Nasdaq heavyweight Apple dropped 1.2 percent.

Investors frowned on a complex deal in which US tobacco giant Reynolds American will buy Lorillard for $27.4 billion and sell cigarette brands including Salem and Winston to British firm Imperial Tobacco for $7.1 billion.

Reynolds sank 6.9 percent, while Lorillard plummeted 10.5 percent.

JPMorgan Chase led the Dow index higher, rising 3.5 percent after reporting earnings of $1.46 per share, well above analyst estimates of $1.29.

Goldman Sachs, another Dow component, rose 1.3 percent as earnings of $4.10 per share beat analyst expectations of $3.05. Strong results in underwriting and Goldman’s own investments offset a hit from lower trading fees for clients.

The good banking results lifted Bank of America (+1.5 percent), which reports earnings before markets open Wednesday.

Bond prices were mixed. The yield on the 10-year US Treasury rose to 2.55 percent from 2.54 percent Monday, while the 30-year held steady at 3.37 percent. Bond prices and yields move inversely.

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PSE suspends trading on Wednesday

By Frances Mangosing |INQUIRER.net

12:55 am | Wednesday, July 16th, 2014

Philippine Stock Exchange. AFP FILE PHOTO

MANILA, Philippines—The Philippine Stock Exchange declared the suspension of trading on Wednesday, July 16 due to Typhoon Glenda (Rammasun).

“There will be no trading and clearing and settlement at the PSE (Securities Clearing Corporation of the Philippines) tomorrow, July 16, due to suspension of bank clearing,” the Philippine Stock Exchange announced on Twitter.

Palace has ordered the suspension of work in government offices in National Capital Region and other areas placed under Signal No. 2.

Glenda will cross Metro Manila before noon Wednesday.

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Asian shares rally following Wall St. gains

A currency trader reacts as he works at the foreign exchange dealing room of the Korea Exchange Bank headquarters in Seoul, South Korea, Friday, July 11, 2014. Asian shares mostly rose Tuesday, taking their lead from a second straight advance on Wall Street, while investors await a string of market-moving news and data over the next few days. AP PHOTO/AHN YOUNG-JOON

HONG KONG–Asian shares mostly rose Tuesday, taking their lead from a second straight advance on Wall Street, while investors await a string of market-moving news and data over the next few days.

The broad Asian gains add to Monday’s positive performance and provided support to the dollar after it took a hit last week.

Tokyo rose 0.78 percent, or 119.84 points, to 15,416.66 thanks to the weaker yen, with investors largely unmoved by the Bank of Japan’s expected decision to stand pat on monetary policy.

Seoul jumped 0.94 percent, or 18.84 points, to end at 2,012.72 and Sydney closed flat, edging down 0.1 points to 5,511.3.

Shanghai closed 0.18 percent higher, adding 3.71 points to 2,070.36. Hong Kong added 0.49 percent, or 113.29 points, to 23,459.96.

New York’s three main indexes ended higher Monday thanks to better-than-forecast earnings from banking titan Citigroup, which was described by Wall Street rival Bank of America Merrill Lynch as “encouraging for large peers that report earnings this week.”

The Dow rose 0.66 percent, the S&P 500 advanced 0.48 percent and the Nasdaq put on 0.56 percent.

In Japan the central bank held off announcing any widening of its stimulus programme, saying the economy was recovering despite April’s sales tax rise, although it revised down its growth forecast for the fiscal year to March.

“It came as no surprise that the BoJ left policy settings unchanged today and presented upbeat inflation forecasts, but we still think more easing will be announced in October,” said Marcel Thieliant from Capital Economics.

China growth data in focus

Later Tuesday will see US Federal Reserve chief Yellen begin two days of congressional testimony, with traders hoping for more detail on the bank’s timeframe for raising interest rates.

Also in sight is a US retail sales report for June and earnings from some major US companies, including JPMorgan Chase and Goldman Sachs.

However, the main focus this week in Asia is on China’s second-quarter gross domestic product growth figures, which are due on Wednesday.

On currency markets the buoyant sentiment provided support to the dollar, which edged up as investors grew more confident about risk.

In early trade the greenback was changing hands at 101.58 yen against 101.54 yen in New York Monday and well up from the 101.25 yen at the end of last week.

The euro bought $1.3619 and 138.30 yen against $1.3619 and 138.29 yen in US trade.

Oil prices were mixed. US benchmark West Texas Intermediate for August delivery was down 17 cents to $100.74 while Brent crude eased 32 cents to $106.66 in late trade.

Gold dipped. It fetched $1,312.34 an ounce at 1115 GMT compared with $1,321.37 late Monday.

In other markets:

– Mumbai rose 0.89 percent, or 221.67 points, to end at 25,228.65 points.

Financial Technologies was up 10.00 percent, or 22.15 rupees, at 243.70 rupees and Piramal Enterprises was down 9.83 percent or 68.80 rupees at 631 rupees.

– Bangkok lost 0.31 percent, or 4.70 points, to 1,524.53.

Supermarket operator Big C Supercenter added 1.44 percent to 212 baht, while telecoms company Advanced Info Service dropped 1.33 percent to 222 baht.

– Singapore was up 0.01 percent, or 0.44 points, to 3,291.42.

Container shipping firm Neptune Orient Lines was unchanged at 94 cents and vehicle distributor Jardine Cycle and Carriage closed 0.90 percent higher at Sg$45.90.

– Jakarta rose 0.99 percent, or 49.76 points, to 5,070.82.

State miner Aneka Tambang gained 0.89 percent at 1,130 rupiah, while polyester manufacturer Asia Pacific Fibers lost 1.64 percent at 60 rupiah.

– Taipei gained 0.51 percent, or 48.87 points, to 9,569.17.

Taiwan Semiconductor Manufacturing Co. was 0.38 percent higher at Tw$133.0 while Hon Hai Precision gained 0.91 percent to Tw$111.0.

– Wellington fell 0.24 percent, or 12.47 points, to 5,115.40.

Fletcher Building was down 0.11 percent at NZ$8.87 and Telecom eased 0.73 percent to NZ$2.73.

– Manila ended flat, nudging up 3.67 points to 6,834.04.

LT Group rose 3.79 percent to 15.88 pesos, BDO Unibank was up 0.50 percent at 90.55 pesos and Alliance Global added 0.90 percent to 28.10 pesos.

– Kuala Lumpur was closed for a public holiday.

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No power crisis yet, says energy chief

DOE to assess if supply shortfall can be addressed soon

By Riza T. Olchondra |

11:31 pm | Tuesday, July 15th, 2014

INQUIRER FILE PHOTO

The Department of Energy Tuesday assured the public that there was no power crisis in Luzon. Still, amid calls from various groups for the government to declare a state of national emergency on power, Energy Secretary Carlos Jericho Petilla said his department was studying whether the rotating power outages during the weekend would be “imminent” in 2015 and 2016.

“Right now, there is none,” Petilla told reporters when asked if there was a power crisis. Petilla said that Section 71 or the Electric Power Crisis provision of the Electric Power Industry Reform Act (Epira) of 2001 need not be invoked unless the DOE has decided that the power supply shortfall experienced last Saturday and Sunday would not be addressed in the next few years by the existing pipeline of power plant projects.

“Our window (for deciding on Section 71) is maybe September at the latest,” Petilla said.

If Section 71 is invoked, Congress will be called to authorize President Aquino to address the power situation—by putting up a new power plant or other means. Petilla said the government might be able to have in six months enough power assets to serve demand.

In the meantime, the DOE is studying the outlook and talking to power plant developers if they can fast-track some of the facilities now under construction. The government is also trying to manage the supply by rearranging maintenance schedules of major power plants.

“We did not allow maintenance schedules in April, we did not allow them in May. These were moved to September and October,” Petilla said. “You have a supply problem every now and then but the question is, can we say it cannot be addressed? We’re not discounting the possibility of invoking Section 71 but this is only to be studied as a last resort.”

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PSEi gains slightly

Philippine Daily Inquirer

11:29 pm | Tuesday, July 15th, 2014

Philippine stocks took a breather Tuesday after a steep loss the previous session, with the benchmark Philippine Stock Exchange index (PSEi) rising 0.05 percent, or 3.67 points, to 6,834.04.

The all-shares index, however, was down 0.05 percent, or 2.02 points, to 4,100.61, data from the Philippine Stock Exchange showed.

A total of 1.41 billion shares changed hands valued at P5.7 billion. Despite the slight gain, there were still 114 decliners against 65 firms that rose Tuesday while 45 companies closed unchanged.

Subsectors, meanwhile, were mixed. Gainers were led by mining and oil, up 0.62 percent, followed by holding firms, up 0.22 percent, and financials, up 0.06 percent. In the red were industrial and property companies, down 0.29 percent and 0.06 percent, while services also slipped 0.06 percent.

Conglomerate Ayala Corp. was the most actively traded stock as it sank 0.54 percent to P643 a share.

This was followed by LT Group Inc. (up 3.79 percent to P15.88), BDO Unibank (up 0.5 percent to P90.55), Ayala Land Inc. (unchanged at P30.80) and Alliance Global Group Inc. (up 0.90 percent to P28.10).

Rounding out the top 10 active issues were Nickel Asia Corp. (up 5 percent to P35.50), Philippine Long Distance Telephone Co. (down 0.13 percent to P3,006), SM Investments Corp. (down 0.25 percent to P786), Universal Robina Corp. (down 0.7 percent to P155.40) and SM Prime Holdings Inc. (up 0.25 percent to P15.94). Miguel R. Camus

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Banks’ bad loans hit record low, says BSP

Philippine Daily Inquirer

11:28 pm | Tuesday, July 15th, 2014

Major local banks kept soured loans at record lows in April despite the sustained growth for financing fueled by the country’s growing economy, data released by the Bangko Sentral ng Pilipinas (BSP) showed.

This indicated that banks chose to defend the health of their balance sheets instead of taking excessive risks, despite high demand for loans from businesses and households.

“Keeping non-performing loan (NPL) levels manageable and loan loss provisioning are essential to managing credit risks,” the BSP said in a statement on Tuesday.

At the end of April, universal and commercial banks’ NPLs stayed low at 2.16 percent of their total loan portfolios, the BSP said.

This was the same level recorded at the end of March, and an improvement from the 2.74 percent in April of 2013.

The country’s universal and commercial banks make up about 90 percent of the local banking sector.

NPLs are loans that have not been paid 30 days past due, and are hence at risk of being written off.

Outstanding loans of major banks rose by 20.9 percent in April, accelerating from the previous month’s 20 percent.

This came amid the availability of cheap cash in the economy following the exit of individual investments from the central bank’s special deposit accounts last year.

Despite the growth, a BSP survey showed that major banks maintained credit standards for businesses, keeping collateral requirements and loan maturity durations the same.

For households, credit standards were tightened as banks became more risk averse.

The BSP said year-on-year, gross NPLs of banks declined by P6.19 billion to P94.42 billion. Paolo G. Montecillo

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