Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 10770

Wage hike in Central Visayas takes effect Aug. 3

THE P10 to P52 increase for minimum wage earners in the private sector in Central Visayas will take effect on Aug. 3, according to Regional Tripartite Wages and Productivity Board-Region 7 (RTWPB-7) chairman Alvin M. Villamor. RTWPB-7, in its order, stated that in line with the trust to rationalize the wage structure and in consideration of the changes in the employment structure in the region, the board agreed to sub-classify the non-agriculture wages and simplify the agriculture wages classification. The order emphasized that not covered by the provisions are household or domestic workers, persons in the personal service of another and workers of establishments registered under the Barangay Micro Business Enterprises with valid Certificates of Authority. Central Visayas covers the provinces of Cebu (including Cebu City) Bohol, Negros Occidental, and Siquijor. — The Freeman
>> See the full story on https://goo.gl/Zzx2Vu

Nation at a Glance — (07/20/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

AirAsia announces $30-billion deal for 100 Airbus planes

Sepang, Malaysia — Malaysian budget airline AirAsia Thursday announced an additional order of 34 Airbus A330neo planes, bringing the total value of its expanded 100-plane order to $30 billion as it sets its sights on European routes.
The first delivery of the fuel-efficient widebody jets will arrive towards the end of 2019 and will allow the airline to take on longer non-stop routes to Europe, AirAsia boss Tony Fernandes said at a media event.
These will be used by its long-haul arm, AirAsia X, replacing its older first-generation A330s.
“We can now start the London route… This plane allows us to fly to Brazil, Namibia and anywhere we want,” he said.
The Kuala Lumpur-London route was dropped in 2012 due to low demand and high fuel prices.
“We lobbied hard for the A330neo after seeing the success of the A320neo, and working closely with Airbus, we have arrived at an aircraft that we are confident will allow us to expand our low fares offering beyond Asia Pacific to the rest of the world,” AirAsia X chief executive Kamarudin Meranun said.
The deal makes AirAsia the biggest Asian customer of European aviation giant Airbus, which has been locked in a tight battle for dominance with US rival Boeing. — AFP

Oil trades below $69 as investors weigh mixed inventories report

Oil traded below $69 a barrel as investors tried to gauge demand growth in the world’s biggest economy following conflicting data on US stockpiles.
Futures in New York were little changed Thursday after rebounding 1 percent in the previous session from a 1.5% drop. Prices have been wavering after government data showed a surprise gain in nationwide crude inventories, while gasoline held in U.S. storage tanks dropped by the most since May on the back of robust fuel demand. Meanwhile, an OPEC committee meeting provided little insight on how output quotas will be split between the group.
Oil has lost about 7% this month over concern an escalating trade conflict between the US and China could jeopardize global economic growth and energy demand. While worries remain over potential supply losses in Venezuela and Iran as well as sporadic disruptions in Libya, investors are waiting to see how an agreement reached last month by the Organization of Petroleum Exporting Countries and its allied producers to raise output will impact global oil supplies.
“Refinery utilization rates in the US have been kept at almost full capacity and it will gradually fall with planned maintenance, which will lead to a build-up in overall crude stockpiles, while gasoline and distillate inventories shrink,” Lim Jaekyun, a commodities analyst at KB Securities Co., said by phone in Seoul. “OPEC has been seen raising output since June and this will slowly resolve risks we see on the supply side.” — Bloomberg

PSEi slides in thin trading

Stock prices slumped on Thursday, July 19, amid thin trading as investors stayed on the sidelines due to lack of leads.
The benchmark Philippine Stock Exchange index (PSEi) gave up 0.85% or 63.50 points to close at 7,387.87, immediately reversing the previous session’s gains. The broader all shares index also lost 0.67% or 30.07 points to 4,462.44.
“I’m waiting for market catalyst to bring back the action to at least year-to-date average volume or more. And I don’t expect much market demand until earnings start to trickle in the next few weeks,” IB Gimenez Securities, Inc. Research Head Joylin F. Telagen said in a text message.
The services counter was the lone sub-index that managed to stay afloat yesterday, albeit at a mere 0.03% increase or 0.4 points to 1,451.16. The rest declined, led by holding firms which dropped 1.5% or 109.38 points to 7,197.93, followed by mining and oil that slipped 0.76% or 74.30 points to 9,665.99.
Property went down 0.62% or 22.60 points to 3,622.38; financials slipped 0.46% or 8.49 points to 1,826.48; while industrial declined 0.21% or 22.29 points to 10,528.20.
Some 672.72 million issues switched hands, valued at P3.69 billion, slowing down from Wednesday’s P4.25-billion turnover.
Decliners prevailed for the day at 117, versus 72 stocks that advanced and 46 others that remained unchanged.
Out of the 20 most actively traded stocks, 13 declined, including Ayala Corp. (down 2.96% to P950), Metropolitan Bank & Trust Company (down 0.36% to P69.50), SM Investments Corp. (down 1.1% to P900), and GT Capital Holdings, Inc. (down 4.13% to P929).
The same list showed only five stocks in positive territory, led by third telco aspirants Transpacific Broadband Group Int’l. Inc., which jumped 5.88% to 54 centavos and EasyCall Communications Philippines, Inc. up 18.61% to P32.50. — Arra B. Francia

Asia stocks fall on trade war fears

Hong Kong — Asian markets mostly fell Thursday, July 19, as the US Federal Reserve chief’s upbeat assessment of the economy failed to allay concerns about a global trade war.
In his second day of congressional testimony on Wednesday, Federal Reserve Chairman Jerome Powell expressed optimism over the US economy.
But he warned that the spiralling global trade row was having a negative impact on companies in the US.
“We hear from our extensive network of business contacts a rising chorus of concerns,” he said.
US President Donald Trump has imposed steep tariffs on products from China worth tens of billions of dollars, and has threatened to target hundreds of billions more, on top of import taxes on steel and aluminium that have angered allies such as the EU.
“Powell was pretty straightforward on the risks from the trade policy uncertainty though he tried to stay out of the political debate,” said Greg McKenna, chief market strategist at AxiTrader.
The Fed chief said US businesses were already being hurt by reciprocal tariffs on key products, pointing out: “The bottom line is a more protectionist economy is less competitive, less productive.”
However, he also said that if Trump’s trade policy resulted in lower tariffs, that would be good for the US economy.
Hong Kong closed down 0.4% while Shanghai was 0.5% lower. Seoul fell 0.3% and Tokyo edged down 0.1 percent, snapping a four-day winning streak.
“Profit-taking emerged after four days of gains,” said Hikaru Sato, senior technical analyst at Daiwa Securities.
“But the decline was limited due to a weak yen and gains in US shares,” Sato told AFP.
Sydney gained 0.3% while Singapore rose one percent.
In a sign of worsening tensions over the trade dispute, a senior economic adviser to Trump attacked Chinese President Xi Jinping for blocking an agreement to resolve the issue.
“I think Xi is holding the game up,” said Larry Kudlow, director of the White House National Economic Council. “I don’t think President Xi has any intention of following through on the discussions we’ve made.” — AFP

Tourist arrivals in the Philippines hit record high in first half

Visitor arrivals for the first semester of 2018 reached an all-time high of 3,706,721, the Department of Tourism (DOT) reported on Thursday, July 19.
Citing data gathered by the agency’s Statistics, Economic Analysis and Information Management Division (SEAIMD), the DoT said foreign arrivals from January to June of 2018 registered a 10.40% growth against the 3,357,591 arrivals last year.
Arrivals for June 2018 reached 528,747, up by 11.35% compared to the 474,854 arrivals of the same month last year.
“The DOT’s continuous marketing promotions, aggressive actions to create new air routes and develop new tourism products, travel facilitation, and confidence in tourism investments drummed up the industry and resulted to this stellar performance. But I would like to emphasize that this will not be possible without the consolidated efforts of all stakeholders,” Tourism Secretary Bernadette Romulo-Puyat was quoted as saying in a statement released by the DoT.
The Tourism chief is also optimistic that the target of 7.4 million tourist arrivals by the end of year is achievable.
“We are actually on track. We are halfway the year and we are exactly halfway of our National Tourism Development Plan (NTDP) target arrivals.”

Office space take-up drops in Q2 as IT-BPM firms put expansion plans on hold

Take-up of office spaces in Metro Manila slowed down by more than a fifth during the second quarter of 2018, as information technology-business process management (IT-BPM) firms put their expansion plans on hold due to uncertainties in accreditation from the Philippine Economic Zone Authority (PEZA).
This is according to real estate consultancy Pronove Tai International, which reported on Thursday, July 19, that the spaces taken up by firms for the April to June period went down by 22% to 214,000 square meters (sq.m.) from the 262,000 sq.m actual take-up in the previous quarter.
Traditional companies drove the demand during the period, taking up 43% or 92,000 sq.m., outpacing the IT-BPM sector which was previously the top driver for office spaces in the metro. IT-BPM firms accounted for 32% of 69,000 sq.m., while offshore gaming firms expanded to 21,000 sq.m. Flexible workspaces provided the remaining 2,000 sq.m.
“The expansion (of IT-BPM) is not impressive as it was before. The basic fact of why they are here is the quality of service that we offer, however there’s these uncertainties [PEZA accreditation] is still significant,” Pronove Tai Chief Executive Officer Monique Cornelio-Pronove said in a quarterly briefing in Makati on Thursday.
PEZA grants fiscal and non-fiscal incentives, such as income tax holidays and exemption from limitations in the employment of foreign nationals, to locators in IT parks such as business process outsourcing firms. The current administration’s delays in handing out such accreditations however have
“If you don’t have PEZA accreditations happening, the significance of PEZA is under threat,” Ms. Cornelio-Pronove said. — Arra B. Francia

Philippines, Australia players face huge fine over ‘basketbrawl’

Basketball’s governing body FIBA on Thursday handed down hefty fines and suspensions over an ugly on-court melee in Manila between the Philippine and Australian national teams during a World Cup qualifier.
Thirteen players and two coaches were suspended for unsportsmanlike behavior and a total of $360,000 in fines issued, mostly against the Philippine hosts of the July 2 match.
The crew officiating the game, which degenerated into wild punches and flying kicks before stunned spectators, were also suspended from competition.
“FIBA wishes to emphasize that it condemns any form of violence, both on and off the court,” it said it in a statement.
“Respect, sportsmanship and professionalism are expected from players, coaches, officials.”
The violence in Manila, which made international headlines, left the Australian team fearing for their safety, and they sought embassy help to fast-track their departure from the Philippines.
Thirteen players were ejected after the all-in fight between the Gilas Pilipinas and the Boomers, which was hashtagged #basketbrawl as footage and condemnation went viral.
What was already a bad-tempered game erupted in the third quarter when Philippine player Roger Pogoy knocked Australia’s Chris Goulding to the ground and Aussie Daniel Kickert retaliated by flattening Pogoy with a flying elbow.
Both teams later apologized to basketball fans for bring the game into “disrepute” with the massive on-court melee.
In chaotic scenes, a white-shirted attacker appeared to slam a chair onto an Australian player as he was set upon by up to a dozen people, and a fan threw a chair at another Australian team member.
The game eventually resumed with just three men on the Philippines team but it was soon abandoned at 89-53 to Australia after two more home players fouled out. — AFP

NEDA reports accelerated spending of ODA loans in 2017

SPENDING of official development assistance (ODA) loans sped up in 2017, the National Economic and Development Authority (NEDA) said.
In a statement on Thursday, July 19, NEDA said the government has disbursed about $1.40 billion ODA loans in 2017, up 11.5% from $1.25 billion in 2016.
Disbursement rate, or the disbursement level as a percentage of the target was at 67.21% from 61.12%.
“This means implementing agencies are improving their technical capacities and making headway in resolving key issues that cause delays in the execution of programs and projects,” Socioeconomic Planning Secretary Ernesto M. Pernia was quoted in the statement as saying.
The Philippines’ total ODA portfolio reached $14.72 billion in 2017, for the full year of 2017, comprised of 352 grants worth $2.42 billion, and 70 loans amounting to $12.30 billion.
However this was lower than the $15.60 billion ODA portfolio recorded in 2016. — Elijah Joseph C. Tubayan

Finance dep’t seeks support from economists for pushing second tax reform package

THE DEPARTMENT of Finance (DoF) is seeking the support of local and international economists from the academe, private sector, government and international organizations, for the push for the second tax package seeking to reform the corporate tax structure as hearings resume next week.
“It is in this historic moment that a statement of support from you, our country’s
eminent economists, for the second tax reform package would be most welcome as
those who benefit from the status quo are quite active and vocal in their opposition,” Finance Secretary Carlos G. Dominguez III said in a speech during a luncheon with economists on Wednesday at the Philippine International Convention Center in Manila.
“Most importantly, we ask for your guidance today and we hope we can count on your
continued support in the coming weeks,” he added.
The package features the lowering of corproate income tax to up to 20% from the current 30%, while streamlining fiscal incentives enjoyed by firms.
The second tax reform package is currently being deliberated by the House ways and means committee. The third public hearing for the measure is scheduled on July 24, the day after the President’s State of the Nation Address.
The luncheon was attended by Yasuyuki Sawada, chief economist of the Asian Development Bank (ADB); Luis Breuer, division chief of the International Monetary Fund (IMF); former Department of Finance (DOF) Undersecretary Romeo Bernardo; Prof. Dante Canlas of the University of the Philippines (UP) School of Economics and president-CEO of the Philippine National Oil Co. (PNOC) Alternative Fuels Corp.; Gerardo Sicat, professor emeritus of the UP School of Economics and the first director- general of the National Economic and Development Authority (NEDA); Gilberto Llanto, board member and former president of the Philippine Institute of Development Studies (PIDS); Renato Reside, assistant professor of the UP School of Economics; Monetary Board members Prof. Felipe Medalla and Bruce Tolentino; and Arsenio Balisacan, chairperson of the Philippine Competition Commission (PCC) and a former director-
general of NEDA. — Elijah Joseph C. Tubayan

ADB maintains growth forecast for Philippines

THE ASIAN Development Bank (ADB) retained its 6.8% and 6.9% gross domestic product (GDP) forecasts for the Philippines for 2018 and 2019, respectively, in its Asian Development Outlook Supplement published on Thursday, July 19.
However, it raised inflation outlook to 4.3% this year from 4% earlier, and kept its 3.9% forecast for 2019.
Headline inflation in the Philippines reached 5.2% in June 2018, bringing the six-month average to 4.3% — above the central bank’s 2-4% target band — driven by high fuel and food prices.
“This outcome combines with expectedly high global oil prices, peso depreciation, and strong domestic demand to prompt this Supplement to revise the inflation forecast for 2018 to 4.3% from the ADO 2018 forecast of 4.0%. Higher excise taxes on fuel and some commodities as part of the Tax Reform for Acceleration and Inclusion Act, which took effect in January 2018, are contributing factors,” the report read.
“The impact of tax reform on inflation is expected to be transitory, however, and normalize in 2019. Also arguing for maintaining the inflation forecast for 2019 at 3.9% are upward adjustments to monetary policy rates anticipated in line with tightening monetary policy globally,” it added. — Elijah Joseph C. Tubayan

1...10,76910,77010,771...12,754Page 10,770 of 12,754
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube