Astros fire Hinch, Luhnow following MLB suspensions

January 14, 2020 | 9:45 pm

LOS ANGELES — Houston Astros owner Jim Crane fired manager A.J. Hinch and general manager Jeff Luhnow on Monday after both received one-year suspensions from Major League Baseball in the sign-stealing scandal.

“Neither one of them started this, but neither one did anything about it,” Crane told reporters. “We need to move forward with a clean slate.”

Commissioner Rob Manfred also fined the team the maximum allowable amount of $5 million and took away the Astros’ first- and second-round draft picks in 2020 and 2021.

“I find that the conduct of the Astros, and its senior baseball operations executives, merits significant discipline,” Manfred said as part of the nine-page ruling. “I base this finding on the fact that the club’s senior baseball operations executives were given express notice in September 2017 that I would hold them accountable for violations of our policies covering sign stealing, and those individuals took no action to ensure that the club’s players and staff complied with those policies during the 2017 postseason and the 2018 regular season.

“The conduct described herein has caused fans, players, executives at other MLB clubs, and members of the media to raise questions about the integrity of games in which the Astros participated. And while it is impossible to determine whether the conduct actually impacted the results on the field, the perception of some that it did causes significant harm to the game.”

In November, reports first surfaced in The Athletic that the Astros had stolen signs using a center field camera during the 2017 regular season. Former Houston pitcher Mike Fiers was the whistleblower.

Former Astros bench coach Alex Cora was identified as the mastermind of the scheme. Cora, now the manager of the Boston Red Sox, was not disciplined, but the report indicates he could still face penalties when MLB concludes its investigation into allegations of sign-stealing by the Red Sox in 2018.

Hinch’s suspension is the longest for an MLB manager since Pete Rose accepted a lifetime ban in 1989.

“I appreciate Commissioner Manfred’s unwavering commitment to upholding the best interests of baseball,” Hinch said in a statement. “I regret being connected to these events, am disappointed in our club’s actions within this timeline, and I accept the Commissioner’s decision. As a leader and Major League Manager, it is my responsibility to lead players and staff with integrity that represents the game in the best possible way.

“While the evidence consistently showed I didn’t endorse or participate in the sign-stealing practices, I failed to stop them and I am deeply sorry.”

The commissioner’s report revealed no evidence that Mr. Crane was aware of the sign-stealing.

“Crane is extraordinarily troubled and upset by the conduct of members of his organization, fully supported my investigation and provided unfettered access to any and all information requested,” Manfred said.

Luhnow released a statement Monday saying that he accepted responsibility for the rules violations on his watch and issued an apology to the organization and its fans, although he denied knowing rules were being broken at the time.

“I am not a cheater,” Luhnow said. “Anybody who has worked closely with me during my 32-year career inside and outside baseball can attest to my integrity. …

“I did not personally direct, oversee or engage in any misconduct. The sign-stealing initiative was not planned or directed by baseball management. … I am deeply upset that I wasn’t informed of any misconduct because I would have stopped it.”

On Monday, Crane said he would oversee Houston’s baseball operations department for now.

In addition, former Astros assistant GM Brandon Taubman was suspended for one year for making insensitive and offensive comments to a group of female reporters during the 2019 American League Championship Series.

The MLB suspensions of Hinch, Luhnow and Taubman are effective immediately and end on the day following the completion of the 2020 World Series. — Reuters

Ceres advances to next round of AFC Champions League prelims

January 14, 2020 | 9:44 pm

By Michael Angelo S. Murillo
Senior Reporter

CERES-NEGROS FC advanced to the next round of the preliminaries of the AFC Champions League 2020 after holding on and defeating visiting Shan United FC of Myanmar, 3-2, in a round 1 match on Tuesday night at the Rizal Memorial Stadium.

An early goal by forward Robert Lopez Mendy got the “Busmen” going as they set the pace for much the contest.

The win pushed the three-time Philippines Football League champions to a showdown in preliminary round 2 of the continental club tournament with Port FC of Thailand in an away match on Jan. 21.

Mr. Lopez Mendy broke through for Ceres in the fifth minute, converting a cross from teammate Pika Minigeshi to make it 1-nil for the home team.

Ceres continued to put the pressure on Shan United’s defense after, with Bienvenido Maranon and Mike Ott having near ones in the 24th and 31st minute, respectively.

The Busmen eventually doubled up on their opponents in the 41st minute when Mr. Maranon found the bottom of the net off a pass from OJ Porteria.

The count remained at 2-0 at halftime.

Ceres picked up where it left off in the opening half, getting four chances at a goal in the first four minutes of the reboot which unfortunately it could not complete.

In the 56th minute, Mr. Maranon had an opportunity to make it two goals for himself but his attempt hit the upper post of the net.

Shan United took jabs at a goal in the next six minutes but Ceres’ defense proved to be up to them.

But the resilience of the visitors paid off in the 73rd minute when Zin Min Tun scored to narrow the gap, 2-1.

Mr. Lopez Mendy and the rest of the Busmen tried to steady the ship after.

They would create further distance anew in the 79th minute as Mr. Porteria connected to make it a 3-1 lead for them.

Shan United scrambled to get some real estate back and got a goal in the 87th minute care of Djawa M. to close in anew, 3-2.

It continued its charge back all the way to the four-minute added time.

But Ceres would dig deep and stand its ground to hang on and preserve the win.

Gov’t adopts more ambitious poverty reduction target rate

January 14, 2020 | 9:15 pm

THE government has officially adopted a new target poverty rate of 11% by the time it steps down in 2022, from 14% previously, the National Economic and Development Authority (NEDA) said, after the more ambitious target was cleared by economic managers.

The adjustment “was approved in the previous meeting of the Development Budget Coordination Committee (DBCC),” it said in a statement released yesterday.

The DBCC had its 177^th meeting on Dec. 11, during which it slashed economic growth projections and revised some macroeconomic assumptions.

The Philippine Statistics Authority reported that poverty incidence dropped to 16.6% in 2018 from the revised 23.3% in 2015, the equivalent of 5.9 million Filipinos lifted out of poverty.

This translated to an average of a 2.23 percentage point drop yearly up to 2018, “making the previous target achievable by mid-2022,” NEDA said.

According to Socioeconomic Planning Secretary Ernesto M. Pernia, the new target, if realized, will be “the first time in history that the poverty rate will be halved in just six years, a significant contribution and achievement of this administration.”

Mr. Pernia has said that the economic managers will review and adjust the poverty reduction target, which could eventually range between 10% and 12%.

“Inclusive, job-generating growth and better-targeted programs helped increase the incomes of the poor. For those in the bottom 30% of the population, mean per capita income increased by 31.9%, outpacing the income growth of those in the top 20% of households,” Mr. Pernia was quoted as saying.

“The government must continue to generate more quality jobs, increase the income of the poor, reduce the vulnerability of the poor through social programs and financial literacy, and the intensified implementation of the National Program on Population and Family Planning (NPPFP),” he added. — Beatrice M. Laforga

Infrastructure financing seen complicated by water dispute

January 14, 2020 | 9:14 pm

GLOBALSOURCE Partners said rising regulatory risk in government contracting may soon affect public-private partnership (PPP) deals for infrastructure projects, as the President continues to insist on modifying water contracts for Metro Manila while declaring his intent not to support a major broadcaster’s franchise renewal.

“The continuing rants cannot but put these business groups in a somber mood, especially given the President’s strong one-sided demands,” according to a report by the emerging-markets consulting firm sent via e-mail over the weekend by Romeo L. Bernardo, country analyst for the Philippines.

He was referring to President Rodrigo R. Duterte’s unilateral decision to renegotiate the water contracts with Manila Water Co., Inc. and Maynilad Water Services, Inc. after finding allegedly “onerous” provisions in their contracts. He has also threatened to block the franchise renewal of ABS-CBN Corp., which expires around March, after it declined to broadcast some of his campaign ads during the 2016 elections.

Mr. Bernardo said investors and creditors will continue to monitor the regulatory environment and noted the need to be “more watchful of political and regulatory risks in long-term infrastructure projects.”

He said the uncertainty surrounding contracts could cause loan rates to rise and parent firms under pressure to provide more robust guarantees on project loans, which will not be favorable for PPP projects and the government’s efforts to develop infrastructure.

“Higher risk assessments that lead to larger risk premia on lending and/or stronger parent firm guarantees to secure credits would spell bad news for PPP projects and government efforts to build up the country’s infrastructure, something that would extend well beyond the term of this administration,” Mr. Bernardo said in the report.

Fitch Solutions Macro Research reported last month that the government’s move to revise its concession deals with the two water distributors pointed to “high regulatory risk” for private firms contracting with the government.

However, it said investor confidence may recover over the long term as the country continues to improve its PPP frameworks.

Meanwhile, GlobalSource Partners’s Mr. Bernardo noted that the concessionaires may not be able to accept all the “10 or so” revisions to the allegedly onerous provisions drafted by the government without the water companies “facing problems financing future investments.”

“Hence, we cannot totally rule out the dreaded wild card, i.e., nationalization of water distribution services.”

Mr. Duterte last week said that the government had completed drafting new contracts for the two water firms.

However, the President also issued a threat to nationalize the country’s water system and charge those who negotiated the water deals on behalf of the companies and the government with plunder or fraud.

In its revised list of 100 infrastructure projects, the government included more PPP-funded projects. From an initial list of nine PPPs out of 75 projects, the current list now consists of 26 PPPs out of 100.

Of the total flagship project value of P4.2 trillion, projects to be funded through PPP will cost around P1.77 trillion.

OTHER RISKS
Meanwhile, the report also flagged the uncertainty generated by the pending corporate income tax bill and unstable global oil prices, which are posing downside risk for the Philippines’ growth outlook this year.

Mr. Bernardo said that despite the Finance department’s wish to pass the bill by the first quarter to protect investment sentiment, he warned that further delays to the bill’s approval may dampen investment.

“We continue to think that Congress needs to move faster on this measure as the reform window narrows. Too, further delays risk more losses in investments, especially in footloose export sectors, e.g., semiconductors and BPOs (Business Process Outsourcing),” he said.

Currently, the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) is still pending with the 18^th Congress.

The bill aims to gradually lower corporate income tax to 20% from the current 30% and rationalize tax perks by making them more time-bound and performance-based.

Overseas, Mr. Bernardo said unstable global oil prices due to the US and Iran tensions may also affect fuel prices, as will the implementation of the another set of increases on petroleum product excise taxes due to the The Tax Reform for Acceleration and Inclusion (TRAIN) Act.

The third tranche of excise tax increases on petroleum products under TRAIN took effect on Jan. 1.

Higher global oil prices, however, have not affected inflation so far, he said.

“So far, increases in world oil prices do not pose a threat to our inflation forecast, especially with corrections of late. However, with heightened geopolitical risks, we expect the BSP (Bangko Sentral ng Pilipinas) to be more watchful of price pressures from this source and may take a more cautious approach to planned monetary easing.”

Nonetheless, he said with the P4.1-trillion budget signed within the first month of the year, the firm expects government spending to rebound especially in the first half and recover from last year’s “poor performance” that was dragged down by the delayed passage of the 2019 budget.

“We expect to see much higher growth in government spending especially in the first semester of the year considering last year’s poor performance.” — Beatrice M. Laforga

Port expected to make Palawan a major cruise destination — DPWH

January 14, 2020 | 9:13 pm

THE Department of Public Works and Highways (DPWH) expects Palawan to become a major cruise destination with the construction of a P1.5-billion cruise port, whose third and fourth phases are targeted for completion this year.

In a statement Tuesday, the DPWH said: “The Puerto Princesa City Cruise Port Facility Project, whose phases 3 and 4 are on-going, is soon (to) put the scenic Province of Palawan in the list of popular international cruise destinations.”

The P1.5-billion project is being implemented by the DPWH’s Region IV-B office.

The project has seven phases, which include the “construction of 500-meter wharf, docking facility, passenger terminal and access road,” the DPWH added.

DPWH Region IV-B Director Wilfredo S. Mallari said that once completed, the facility can accommodate “up to 10,000 passengers.”

The DPWH noted that Puerto Princesa City is home to a UNESCO World Heritage Site, the Subterranean River National Park, also known as the Underground River.

It said the city also serves as a gateway to other tourist destinations like El Nido, San Vicente, and Taytay.

The Department of Transportation (DoTr) said last week that it will formally inaugurate this month the newly-developed Salomague Cruise Port in Cabugao, Ilocos Sur.

The cruise port, which is already in use, serves as an alternate cruise port for Region I as it is located near attractions and beaches in the Ilocos provinces.

Bloomberry Cruise Terminals, Inc. (BCTI), in collaboration with the Philippine Ports Authority (PPA), facilitated the completion of the Salomague cruise port’s terminal facilities.

According to the 2019 Annual Report of the DoTr, the administration has completed a total of 317 commercial and social or tourism port projects.

“The improvement of the nation’s ports (will) boost connectivity and mobility, as well as spur regional growth in trade and tourism,” the DoTr said.

Among the projects completed last year are Davao del Sur’s Malalag Port, General Santos City’s Makar Port, Davao City’s Sasa Port, Bohol’s Tubigon Port, Southern Leyte’s Limasawa Port, and Misamis Oriental’s Opol Port. — Arjay L. Balinbin

Consumption-led boom seen continuing into 2020 — FMIC

January 14, 2020 | 9:13 pm

CONSUMPTION will remain the economy’s main prop amid global headwinds and calamities, with investment remaining clouded due to uncertainty surrounding corporate tax reform and regulated industries like water, participants at a First Metro Investment Corp. (FMIC) briefing said.

At FMIC’s Economic and Capital Markets Briefing, the firm’s chairman Francisco M. Sebastian said: “What held us together last year is consumption,” adding that the next few years could be the “great decade of Filipino consumers” due to lower unemployment, underemployment and poverty rates.

The Philippine Statistics Authority (PSA) said the poverty incidence among families dropped to 16.1% in the first half of 2018 from 22.2% three years earlier, bringing it closer to a poverty rate of about 14% targeted by the government when its term expires in 2022. This target was recently adjusted to 11%.

Unemployment and underemployment rates are also at record lows of 4.5% and 13%, respectively.

FMIC, the investment banking unit of the Metro Bank Group, estimates gross domestic product (GDP) growth of 6.2-6.6% in 2020, supported by the government’s plan to bring infrastructure spending to the equivalent of 5.7% of GDP, as well as robust consumption.

This forecast estimate compares to the 5.6% average growth in the first three quarters of 2019 and the 6.2% seen for the full year 2018. The forecast also fits well within the 6.5-7.5% target growth of the government until 2022.

“We have seen the acceleration in the national government spending expanding in the third quarter and we are also seeing actual bigger-ticket items are going full steam ahead,” University of Asia and the Pacific professor Victor A. Abola said.

Mr. Abola said he expects price movements in major commodities in 2020 “to remain very close” to the 2.5% average inflation level seen in 2019. FMIC has a forecast range of 2.5-2.8% for this year, also well within the central bank’s forecast range of 2-4%.

“(Bangko Sentral ng Pilipinas) Governor (Benjamin E.) Diokno spoke of the Goldilocks economy, which is an economy that is growing without inflation,” he said.

Mr. Abola said foreign direct investment (FDI) likely declined in 2019 based on data available as of October.

Preliminary BSP (Bangko Sentral ng Pilipinas) data show that FDI net inflows fell 32.8% to $5.79 billion during the 10 months to October.

He said FDI was pressured by uncertainty due to the lack of finality surrounding a major tax reform bill, known as CITIRA (Corporate Income Tax Incentives Rationalization Act).

“It’s a pity because we are seeing a lot of FDIs moving from China towards Vietnam and Indonesia,” he said, noting that Vietnam’s nine-month total edged up to $25 billion.

Asked about the government’s contract dispute with its water service providers and its possible impact on FDI, Mr. Sebastian said: “I think the questions surrounding the concessions will get more people more thoughtful on how contracts will be written in the future…”

“We think that over the long run, these public-private partnerships are very attractive. I think in the end, we’re optimistic that a solution will be found,” he added.

In November, the BSP downgraded its FDI target for 2019 to $6.8 billion from the initial $9 billion target released in May.

Mr. Abola said the ongoing activity at Taal Volcano is unlikely to result in a major hit to the economy.

“I compare it to the typhoons that hit us. And the fortunate thing here is that it’s very localized, compared to typhoons which cover many provinces,” he said.

Mr. Abola added he is positive that the tensions between the US and Iran will not escalate, containing the risk from higher oil prices.

“(There was an initial) knee-jerk reaction in the markets after the killing of the (Iranian) general. Of course it creates tension in the area but there are many willing producers like for example Russia,” he said, noting that a worst-case scenario of $90 per barrel of crude is unlikely.

Mr. Abola said that an upgrade to the sovereign credit rating may only happen once growth is sustained at 7%.

“For us to think of this… within a couple of years, I think maybe our energies should (go into) addressing real issues that could accelerate our growth beyond the 7%,” he told reporters on the sidelines of the briefing.

In May S&P Global Ratings raised the country’s long-term sovereign credit rating to “BBB+” from “BBB,” bringing it one notch away from an “A”-level rating.

The government is targeting another credit rating upgrade to offset the loss of access to concessional financing rates as the Philippines is reclassified as an upper middle-income country sometime this year. — Luz Wendy T. Noble

PEZA exploring new sources of revenue

January 14, 2020 | 9:12 pm

THE Philippine Economic Zone Authority (PEZA) is creating a technical working group to explore new income streams, the agency said in a statement Wednesday.

PEZA Director Charito B. Plaza said the new income streams will support the Department of Finance’s (DoF) revenue efforts to finance the government’s infrastructure program along with other projects in its economic agenda.

“It’s not just creating new sources of revenue but (it is also) enhancing PEZA’s ‘good governance’ goals that provides efficiency, effectiveness, responsiveness and credibility to investors, the national government, the local governments and the people in general as PEZA’s stakeholders,” she said.

“We remain steadfast in our mandate to generate investment, employment for Filipinos, and export income for our economy.”

She said that she has written to Finance Secretary Carlos G. Dominguez III for his support in evaluating potential revenue sources, and for enhanced services to be provided by the DoF’s Bureau of Internal Revenue (BIR), the Bureau of Customs (BoC), and the Bureau of Local Government Finance (BLGF).

PEZA said it generated P109.193 billion worth of investment in the 11 months to November, creating more than 1.5 million jobs. Its locators accounted for $45.34 billion worth of exports in the 10 months to October.

There are 404 economic zones in operation in the Philippines, with 74 classified as manufacturing economic zones, 286 IT parks and centers, 22 agro-industrial economic zones, 19 tourism economic zones, and three medical tourism parks. — Jenina P. Ibañez

Bacoor pitches reclamation as a flood control measure

January 14, 2020 | 9:11 pm

THE PROPOSED 420-hectare reclamation project along CAVITEX in Bacoor City is expected to address flooding and facilitate the relocation of informal settler families, the Bacoor City government said in a statement on Monday.

The statement was issued after stakeholders attended a public hearing on the Manila-Cavite Expressway project conducted by the Department of Environment and Natural Resources (DENR) on Jan. 9.

The Bacoor Reclamation and Development Projects consist of islands of up 320 hectares, while the Diamond Reclamation and Development Project is a 100-hectare island executed via a public-private partnership.

The project is opposed by fishermen, who said Tuesday that the reclamation expels the area’s fishing community and harms the environment in order to make way for a business hub.

“The City hopes to integrate in these two projects a most effective approach to the long-term clean-up of Manila Bay as mandated by a SC (Supreme Court)… being the only projects along the Manila Bay that carry with them a program for relocation and resettlement of Informal Settler Families (ISFs) living along the 10 coastal barangays,” Bacoor said in its statement.

Bacoor City’s Barangay Alima will be turned into a fisherman’s village to resettle families living along Bacoor Bay.

“Masasabi natin na ito ay isa sa mga iilang reclamation projects sa Pilipinas na may in-city relocation (This is one of the few reclamation projects in the Philippines that has in-city relocation),” Bacoor Mayor Lani M. Revilla said.

A national organization of fishermen, the Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (PAMALAKAYA) said in a statement that its members protested the hearing and claim that many residents will be relocated to non-coastal areas such as Naic, Cavite and the Molino district of Bacoor.

Alyansa ng mga Magdaragat sa Bacoor Bay spokesperson Joel C. Falcis said that the mayor cannot “arbitrarily uproot the lives of tens of thousands of fisherfolk by relocating them to areas far from their source of livelihood.”

“Our collective and humble appeal to our Mayor is to reconsider her decision to eject us from our fishing community to pave way for private establishments that are of no benefit to her constituents,” he said.

PAMALAKAYA in an e-mail Tuesday also disputed the city government’s claim that it received “overwhelming” support from stakeholders at the hearing, saying that not everyone present was sufficiently informed beforehand.

Ms. Revilla said the project is integrated with various long-term flood mitigation projects of the Department of Public Works and Highways (DPWH).

“The Flood Risk Management Project of the DPWH will improve river channels and create diversion channels from Imus to Bacoor City which will serve as the flood discharge system of the rainwater catchment basin of Bacoor in Buhay na Tubig,” the statement said.

The channels between the island are also aligned with existing river outflows. The statement said that studies conducted by the private sector also found that the islands can serve as the city’s storm surge defenses.

The reclamation project, the city said, is also expected to create 700,000 jobs due to new investments and businesses in the residential, leisure, commercial and education and technology mixed-use zone.

“Increased revenue will also enable the city government to improve the delivery of government services, particularly through extensive use of smart technology,” Ms. Revilla said.

PAMALAKAYA last year filed a formal complaint with the DENR regarding the three ongoing reclamation activities in Cavite. — Jenina P. Ibañez

PSEi picks up on bargain hunting as trade resumes

January 14, 2020 | 9:00 pm

By Denise A. Valdez, Reporter

LOCAL SHARES opened the trading week slightly higher as bargain hunters emerged upon the resumption of business operations in the country on Tuesday.

The benchmark Philippine Stock Exchange index (PSEi) picked up 16.48 points or 0.21% to close at 7,793.25 on Tuesday. The broader all shares index ended flat with a gain of 0.8 point or 0.01% to 4,605.97.

“Philippine shares were slowly bought up towards close as more investors felt assured that the damage caused by the eruption would be short term,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message, referring to the eruption of the Taal Volcano.

The Taal Volcano was spewing ash, steam and lava over the past days, which led to the shutdown of businesses in directly affected areas and in Metro Manila on Monday.

The country’s second most active volcano located south of Metro Manila in the province of Batangas is expected to remain active in the coming days, the Philippine Institute of Volcanology and Seismology said Tuesday.

Despite this, most private offices resumed work yesterday, and the stock market welcomed investors that were ready to cash in after the extended weekend, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said.

“The increase in trading volumes and the foreign inflows helped push the market higher,” he said in an e-mail, referring to yesterday’s value turnover of P9.88 billion (from Friday’s P6.80 billion) and net foreign buying of P157.06 million, which was lower than Friday’s P465.66 million.

For Philstocks Financial, Inc. Research Associate Claire T. Alviar, the rise of the PSEi on Tuesday was driven by “last-minute bargain hunting, as well as the optimism on the US-China trade agreement.”

Other Asian markets were mixed in yesterday’s trading session. Japan’s Nikkei 225 and Topix indices increased 0.73% and 0.31%, respectively, but Hong Kong’s Hang Seng index and China’s Shanghai SE Composite index each shed 0.24% and 0.28%.

Meanwhile, at Wall Street, the Dow Jones Industrial Average rose 0.29% to end at 28,907.05 while the S&P 500 gained 0.70% to 3,288.13, its highest close ever The Nasdaq Composite jumped 1.04% to 9,273.93, also a record high.

Back home, gainers and losers among sectoral indices were divided three against three. Those that gained were industrials, which rose 168.6 points or 1.8% to 9,533.08; services jumped 22.43 points or 1.44% to 1,578.09; and financials climbed 9.2 points or 0.5% to 1,836.72.

Losers were mining and oil, which gave up 156.4 points or 1.93% to 7,951.24; property lost 44.87 points or 1.09% to 4,067.47; and holding firms dropped 13.98 points or 0.18% to 7,621.47.

Stocks that declined outnumbered those that advanced, 111 against 83, while 54 names ended unchanged. — with Reuters

Peso climbs on improved sentiment on US-China

January 14, 2020 | 9:00 pm

THE PESO strengthened as the market reopened amid positive sentiment on the US and China’s relationship. — *BW FILE PHOTO*

THE PESO climbed on Tuesday amid positive market sentiment on the back of seemingly improving US-China ties ahead of the signing of the phase one trade deal.

The local unit closed at P50.581 per dollar on Tuesday, appreciating by 7.9 centavos from its P50.66-a-dollar finish on Friday.

Markets were closed on Monday following the eruption of Taal Volcano.

The peso opened Tuesday’s session at P50.40 versus the greenback. Its weakest showing was at P50.63, while its intraday best was at P50.37 to a dollar.

Dollars traded climbed to $1.408 billion on Tuesday from the $1.152 billion seen on Jan. 10.

An analyst and trader attributed the peso’s strength to positive headlines about the relationship of the world’s two biggest economies.

“The peso appreciated amid optimism ahead of the signing of first-phase US-China trade deal and after US removed China’s designation as a currency manipulator,” a trader said in an e-mail.

This also boosted Asian currencies, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“The peso exchange rate closed stronger today versus the dollar, among the strongest in two years, ahead of the signing of the US-China phase one trade deal and after the US lifted the designation of China as a currency manipulator,” Mr. Ricafort said on Tuesday.

For today, the trader sees the peso moving around the P50.50-P50.70 level, while Mr. Ricafort gave a forecast range of P50.30-50.60 a dollar.

The Chinese yuan firmed to its strongest level in six months on Tuesday, leading most other Asian currencies higher, as the US Treasury department removed its designation of China as a currency manipulator.

The yuan strengthened as much as 0.4% to 6.8661 per dollar and was poised for its sixth straight session of gains.

Monday’s announcement comes ahead of the signing of a Phase 1 trade deal between the United States and China due on Jan. 15, expected to ease tensions between the two countries.

“While there had been little changes to Asia economies’ participation to the US FX (foreign currency) report watchlist, this lifting of China’s currency manipulator label may see to some relief for USD/Asian declines which would be beneficial to regional markets,” said Jingyi Pan, market strategist at IG.

The US Treasury report cited continued concerns about the currency practices of nine other countries, including Malaysia, Singapore and South Korea.

The South Korean won advanced 0.2%, while the Malaysian ringgit and the Singapore dollar were little changed.

Taiwan’s dollar was up 0.2% even though the US report said the country was close to triggering thresholds to be added to the currency monitoring list.

A senior official of Taiwan’s central bank told Reuters on Tuesday that the bank has never used swaps to intervene in the currency market, after the Treasury department cited an analyst report suggesting the island was doing so.

Adding to the cheer in Asian markets, China’s trade data for December beat forecasts with exports rising for the first time since July 2019 and imports rising 16.3% from a year earlier. — LWTN with Reuters

Duterte bars PNP from ordering supplies, property

January 14, 2020 | 8:22 pm

PRESIDENT Rodrigo R. Duterte said he would take away the police’s procurement powers after the agency was said to have bought overpriced speed guns.

“I removed the power of the Philippine National Police to procure equipment,” he told reporters late Monday.

The national police allegedly bought speed guns that cost almost a million pesos each. Mr. Duterte noted that a unit costs only P10,000 in his hometown of Davao City. “Nine hundred fifty thousand pesos per unit is simply abominable,” he said.

He vowed to remove the procurement power of other corrupt agencies. “It’s a warning,” the President said of his action on the Philippine National Police.

Mr. Duterte said he would transfer the procurement authority to Interior and Local Government Secretary Eduardo M. Año.

This wasn’t the first time the PNP faced procurement issues. In November, the agency said it had fired several majors after they were found to have extorted P5 million from one of the bidders for more than P300 million worth of body cameras.

Mr. Duterte said he was thinking of putting up a new agency that will focus on the acquisition of government supplies and property. — Gillian M. Cortez

3 Chinese, one Korean wanted for fraud to be deported — BI

January 14, 2020 | 8:21 pm

THE Bureau of Immigration will deport three Chinese nationals and a South Korean who are wanted for fraud in their countries, it said in a statement on Tuesday.

The agency said the Chinese suspects had committed economic crimes and have standing arrest warrants in China.

Commissioner Jaime H. Morente said the suspects had conspired to forge the seal of a hospital in China, committing fraud of more than 10 million renminbi or about $1.5 million, citing information from the Chinese embassy.

Further investigation showed that they came to the Philippines last year separately as tourists. The Chinese government has canceled their passports.

Meanwhile, the South Korean has an arrest warrant for fraud issued by authorities in Seoul. The Immigration Bureau has issued a warrant for his deportation, Mr. Morente said.

The bureau said the deportation order came after Korean authorities informed the Philippine government that he was wanted for being the mastermind of a fraudulent investment scheme in which the victims had lost more than a billion won.

“We will deport them immediately and they will be included in our blacklist to make sure that they won’t return to the Philippines,” Mr. Morente said.

They are the first batch of fugitives to be deported this year, Fugitive Search Unit chief Bobby R. Raquepo said. Last year, more than 400 foreign fugitives were arrested in the country. — Vann Marlo M. Villegas

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