Facebook Instagram Linkedin X Youtube
Home Blog Page 11506

Budget chief expects infrastructure spending to have closed in on target

THE COUNTRY’s Budget chief expects infrastructure spending last year to have closed in on the government’s program.
Budget Secretary Benjamin E. Diokno said that the share of infrastructure spending to gross domestic product (GDP) likely settled at 6.2% last year, based on funds obligated in the 11 months to November, against an official 6.3% full-year program for 2018.
“Infrastructure spending surged to 6.3% of GDP in 2017 and is projected to hit 6.2% of GDP in 2018, almost tripling the average two percent of GDP spent from 1986 to 2016. This is in line with the Duterte administration’s target of increasing infrastructure spending to more than 7% of GDP by 2022,” Mr. Diokno said in a press briefing on Wednesday in Mandaluyong City.
The infrastructure spending-to-GDP ratio — based on obligated funds and not actual payments — is targeted to hit 7.3% by 2022, when President Rodrigo R. Duterte ends his six-year term, from this year’s 6.3% target.
The government is shifting to a cash-based spending scheme starting with the proposed 2019 national budget that accounts for only actual payments to contractors in a fiscal year plus a six-month extension. Under this scheme, infrastructure spending-to-GDP is programmed at 4.7% this year, rising to seven percent by 2022.
“As long as the Senate and the House act on the budget, then we’ll probably hit it. The 2018 budget was extended [since Congress has yet to ratify the proposed P3.757-trillion 2019 national budget]. There were some appropriations released but have yet to be obligated, so that will help,” Mr. Diokno said.
“And depending also on the speed on how we contract our foreign loans, so I’m optimistic that we’ll hit the target for this year.”
Expecting the 2019 budget to be operational before the end of this quarter, Mr. Diokno said that the government is preparing a catch-up plan to mitigate the impact of the delays in implementing new projects as well as the 45-day halt of public works before the May 13 mid-term legislative and local elections. The catch-up plan includes hiring of more workers in the construction of infrastructure projects and longer working hours.
“The best time to build is during the first six moths of the year, but depending on the weather pattern. But with climate change hindi mo na alam kung ano ang tagulan… (we no longer know when to expect rains) so if we miss that, we can still make up kung walang (if there are no) major typhoons. Some major projects are not susceptible to the weather,” Mr. Diokno said.
“This fast-tracked spending performance addresses the country’s under-investment in infrastructure, which has severely dragged the Philippines’ economic performance in the past.”
The reenacted budget came as leaders of the House of Representatives late last year flagged alleged project insertions in the budget that favor select districts and a certain contractor. Earlier, House appropriations officials had also opposed the Executive’s proposed shift this year to a cash-based budget — which takes into consideration state offices’ limited spending capacities — from one that had appropriated funds for payments over two years. The shift resulted in a proposed budget of P3.757 trillion against 2018’s P3.767 trillion.
2019 GDP GROWTH ‘AT LEAST 7%’
In the same press briefing, Mr. Diokno also said that he expects economic growth to hit “at least seven percent” this year amid waning inflation.
Inflation’s spike for much of last year had been blamed for crimped GDP growth, since elevated overall price increases of widely used goods weighed on household consumption.
“We are confident this time we will hit 7-8% growth rate. At least seven percent,” Mr. Diokno said.
“And inflation will be much much lower this year. Our target is 2-4%, but as you know because of the base effects, we’ll probably end up closer to two percent than to four percent.”
This comes as the government late last year downgraded its economic growth forecast for 2018 to 6.5-6.9% due to inflation from 7-8% initially. GDP growth in the first three quarters of 2018 averaged 6.3%.
Government expenditures totaled some P3.095 trillion in the 11 months to November, up 24% year-on-year and equivalent to 92.5% of the P3.346-trillion 2018 downgraded disbursement target.
Latest data on infrastructure spending and other capital outlays show such spending settled at P665.1 billion as of October, growing 50.3% from 2017’s comparable 10 months.
Mr. Diokno said that latest available data have been “increasing the likelihood of zero underspending for 2018.” — Elijah Joseph C. Tubayan

Bulls on a roll as foreign funds trickle back to PHL

PHILIPPINE bulls are on a roll, and who can blame them?
The nation’s equities index has started the year beating many global peers, and foreign fund managers are putting back money in a market that was among Asia’s worst in 2018.
Traders at Rizal Commercial Banking Corp. (RCBC) and AB Capital & Investment Corp. are riding the rally by deploying their cash, rather than cutting their stock holdings as they did last year whenever equities went into high gear.
The Philippine Stock Exchange index (PSEi) has rallied by 6.08% for the year so far since end-2018’s 7,466.02 finish, including a 2.8% gain Wednesday.
It closed at an eight-month high, breaking a key resistance level and moving closer to the 8,000 that traders say it could surpass this quarter.
“It’s a good strategy to ride the prevailing positive mood, even if only for the short term,” said Gerard Martin F. Abad, who manages $380 million as chief investment officer at AB Capital.
“We will see a continuation of the improvement in inflation, and it helps that the US Fed has become dovish. That eases pressure on the central bank to raise rates,” he added.
The optimism stems from encouraging inflation data — it slowed for a second month from a nine-year high, reaching its slowest pace since May — and prospects that the Federal Reserve will ease interest-rate increases.
That’s brought down the US dollar from a high, prompting foreign investors to come back to the Philippines: They’ve already pumped in $49 million in equity funds this year, including the longest streak of daily inflows in five months, after $1.08 billion of withdrawals in 2018.
“Sentiments are very bullish,” said RCBC trader Steven Kent Ko, who helps manage about $1.72 billion.
“We are taking profit in some of the leaders, but rotate the money into stocks that will outperform as the climb to the 8,100-8,200 level is quite possible from here.”
Nomura analysts Chetan Seth and Jayant Parasramka upgraded Philippine equities to overweight from neutral in a note published Wednesday, citing a peak in the nation’s inflation.
Stock valuations can be justified by strong earnings growth prospects, they said.
Mr. Ko is looking for market laggards, with a preference for banks and consumer-related shares on expectations margins will improve and earnings will grow.
Mr. Abad, who in addition to those sectors also likes property, is withdrawing from mid-cap stocks and putting the money into the market’s biggest companies, which he expects will propel the nation’s benchmark index higher.
Yet he recommends to “cut exposure” should PSEi break the 8,200-8,300 level, which he sees as likely. With the prevailing bullish sentiment, and should fourth-quarter gross domestic product data show a pick up in growth, the gauge could even hit 8,400, he said.
“It won’t hurt to be conservative and top slice if the market rallies too fast, too soon,” Mr. Abad said.
“It’s better to wait for first-quarter earnings for confirmation of whether this rally is standing on fundamental legs.”
Slowing inflation could boost spending and margins that could trigger a corporate earnings surprise and drive the Philippine stock index to 8,900 this year, according to Jose Domingo III Manalad “Jody” Santiago, Manila-based strategist at UBS AG.
He forecasts market earnings growth to speed up to 12.3% this year compared with about 8.5% in 2018, when rising inflation squeezed margins and hurt consumer demand.
Optimism for earnings growth is renewing interest from overseas investors and helping support valuations, Mr. Ko said.
That’s even though — at 16 times projected profit for the next year — they remain among the highest in Asia.
“It’s too early to say if the foreign-fund inflow is a reversal of last year’s withdrawals, but definitely there is some interest in emerging markets and the Philippines,” Mr. Ko said. — Bloomberg

Ayala acquires Phinma Energy


By Victor V. Saulon, Sub-editor
AC ENERGY, Inc. is taking control of Phinma Energy Corp. through a “mutually strategic agreement” that gives the Ayala-led company a 51.48% stake in the listed energy firm for P3.42 billion.
In a joint statement on Wednesday, the two groups said the Ayala’s energy platform will acquire the combined stake of Phinma Corp. and its parent Philippine Investment Management, (Phinma) Inc. in Phinma Energy subject to regulatory approvals.
Jaime Augusto Zobel de Ayala, chairman and chief executive of Ayala Corp., described the Phinma group as “one of our early partners when Ayala was new to the power sector.”
“This partnership has prospered over the last eight years and we welcome the opportunity to now integrate Phinma Energy into AC Energy’s platform as we grow our presence in the power generation sector,” he said.
Ramon R. del Rosario, Jr., Phinma president and chief executive, said the two groups “have always enjoyed a strong partnership, making this agreement a welcome culmination of our joint initiatives in the energy sector, as we believe AC Energy is best-positioned to grow the business and take it to the next level.”
Mr. del Rosario said Phinma will now focus on its education and construction materials business.
The agreement, which was approved by both groups on Tuesday, involves the sale by listed holding firm Phinma Corp. of its 1,283,422,198 shares or 26.25% in Phinma Energy for P1.75 billion based on the unit’s implied 100% equity value of P6.65 billion. The shares will be sold through the stock exchange.
Phinma Corp. and its parent will then cause Phinma Energy to approve the issuance of 2,632,000,000 in new shares, to which AC Energy will subscribe.
Parent firm Phinma will also sell its 25.23% interest in the energy subsidiary.
“The estimated proceeds from the sale in the amount of P1.7 billion will be used to focus investments in other sectors such as education and construction materials as opportunities arise,” Phinma Corp. said.
The groups said the valuation date was as of Dec. 31, 2018 and is subject to adjustments.
The transaction will result in a loss on sale of P368 million subject to adjustments but will allow Phinma Corp. to avoid significant losses from the energy business in the future, it said.
The deal’s closing is subject to the satisfaction of certain conditions, such as regulatory approvals, including the approval of the Philippine Competition Commission, and compliance with applicable tender offer requirements.
AC Energy and Phinma Energy first teamed up in 2011 when they developed, built and started operating the 244-megawatt (MW) net capacity coal power plant in Calaca, Batangas under South Luzon Thermal Energy Corp.
Eric T. Francia, AC Energy president and chief executive, said the transaction was an “important step” for the company in hitting its 5-gigawatt (GW) renewable energy installation target by 2025.
He said the Phinma Energy platform “has significant operating and developmental renewable energy assets, and its large diesel capacity will complement the scaling-up of our renewable projects.”
Sought for comment, Luis A. Limlingan, business development head at Regina Capital Development Corp., said the deal is indeed an important step for AC Energy to achieve its target energy capacity.
On AC Energy’s possible entry into the stock market, he said: “That may be one angle to look at as a possible backdoor listing but does not seem likely yet.”
On Wednesday, shares in Phinma Corp. rose 1.21% to close at P8.99 each, while those of Phinma Energy gained 8.46% to end the trading day at P1.41 each.
AC Energy owns around 1.7 GW of generation capacity in operation and under construction based on its equity interest in power generation businesses. It generated 2,800 GW-hours of energy last year, of which 48% was from renewable sources, the company said.
Phinma Energy has an attributable generation capacity of 472 MW. It is the third-largest stand-alone retail electricity supplier serving 378 MW of customer demand.
It holds interests in the following entities: Phinma Power Generation Corp. (100%); Phinma Renewable Energy Corp. (100%); CIP II Power Corp. (100%); One Subic Power Generation Corp. (100%); One Subic Oil Distribution Corp. (100%); Phinma Solar Corp. (60%); Phinma Petroleum and Geothermal, Inc. (50.74%); Palawan Exploration and Production Corp. (30.65%); South Luzon Thermal Energy Corp. (45%); and Maibarara Geothermal, Inc. (25%).

Shakey’s to deliver 20 new stores

SHAKEY’S Pizza Asia Ventures, Inc. has introduced a new look for the pizza chain in an effort to attract millennial consumers. — SHAKEY’S FACEBOOK PAGE

By Arra B. Francia, Reporter
SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) plans to open 20 new stores this year, pushing its expansion outside Metro Manila as it sees more opportunities for growth in the provinces.
In a statement issued Wednesday, the casual dining restaurant operator said this will bring its total store network to 248 by 2019.
The listed firm is banking on higher consumer spending to support its expansion.
“We continue to see consumer spending fueling the Philippine economy, which is still one of Southeast Asia’s fastest-growing markets,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said in a statement.
The target for store expansion this year matches the net openings the company had in 2018, 80% of which are located outside the National Capital Region.
“We are focused on expanding outside Metro Manila where we see great potential in terms of demand for the premium yet affordable dining experience we provide. We also tapped more local partners this year to run our provincial operations and to ensure that we have on-the-ground accountability even in farther-flung areas,” Mr. Gregorio said.
The company also noted that 75% of the newly-opened stores were franchised. Franchising a Shakey’s store entails an investment of about P18-24 million, depending on the size and location. SPAVI earlier said that the total investment can be recovered in three to five years’ time, with the franchise contract running for a minimum of 10 years.
In 2017, SPAVI said it looks to have a network of 300 stores within three years, further ramping it up to 500 within five years.
Aside from expanding its store network, SPAVI also redesigned interiors for the newer branches and launched new products to attract more millennials into their outlets.
“The brand has been able to stay relevant; it has gone through a lot of adaptations in response to the changing times, and our ability to touch lives has formed the foundation of our fiercely loyal base of guests,” Mr. Gregorio said.
SPAVI also owns the perpetual rights to franchise the Shakey’s brand in the Middle East, Asia excluding Japan and Malaysia, China, Australia, and Oceania. The company has at least 18 outlets in the pipeline in these locations over the next few years.
The company’s net income attributable to the parent went up six percent to P534.64 million in the first nine months of 2018, compared to P503.61 million in the same period a year ago. This followed a 10% uptick in gross revenues to P5.49 billion in the same period a year ago.
Shares in SPAVI jumped 1.95% or 24 centavos to close at P12.54 each at the stock exchange on Wednesday.

PLDT, GMA team up for digital television


PLDT, Inc. and wireless unit Smart Communications, Inc. are working with GMA Network, Inc.’s New Media, Inc. (NMI) to assist the television network in its digital transformation.
In a statement, the listed telecommunications giant said it signed on Wednesday a technology, content, and distribution agreement with GMA that relates to the latter’s plans for digital television.
PLDT-Smart Chairman, President and Chief Executive Officer Manuel V. Pangilinan said the partnership with GMA Network helps its goal of transforming “from being a legacy telco into the premier and most trusted digital enabler in the country.”
“[T]his partnership will enable us to power GMA’s digital pivot and help deliver to our millions of fixed and wireless subscribers GMA 7’s unique and compelling content, as well as exciting new digital experiences to more Filipino families,” he said in the statement.
GMA Network Chairman and Chief Executive Officer Felipe L. Gozon said the agreement is a step towards the media company’s goal of “welcoming disruption and embracing digital with open arms.”
“By riding the wave of disruption with PLDT and Smart as partners, we will not only upgrade the quality of content we are producing but we are also setting the stage for a new age of digital television,” he was quoted as saying.
For years, PLDT and GMA Network have been engaged in on-and-off negotiations for the telco to acquire a controlling stake in the media company. In 2017, both Messrs. Pangilinan and Gozon said they were open to revive the talks, but no progress was made.
PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. currently holds all television and print media interests of Mr. Pangilinan. This includes TV5 Network, Inc., Cignal TV, Inc., the Philippine Star Group, and BusinessWorld.
Hastings Holdings, a unit of MediaQuest, has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

LTFRB rejects Go-Jek’s application to operate ride-hailing service in Philippines

MANILA — The Philippines’ transport regulator has rejected the application of Indonesia’s Go-Jek to launch a ride-hailing service in the country due to foreign ownership issues, a government official said on Wednesday.
The Land Transportation Franchising and Regulatory Board (LTFRB) denied the petition of Go-Jek’s subsidiary to become the newest ride-hailing service in the Southeast Asian nation, the regulator’s chairman, Martin Delgra, told Reuters.
Velox Technology Philippines, Inc., a unit of Go-Jek, “did not meet the citizenship requirement and the application was not verified in accordance with our rules,” Mr. Delgra said.
Go-Jek, which counts Tencent Holdings Ltd. and JD.com, Inc. as investors, did not immediately respond to request for comments. — Reuters

Kaspersky partners with MSI-ECS for B2B products

RUSSIA-BASED cybersecurity company Kaspersky Lab said on Monday it is tapping local firm MSI-ECS Philippines to spur its growth in the enterprise market.
In a statement, Kaspersky Lab said it wants MSI-ECS to help the company as a distributor of its business-to-business cybersecurity products and services for local enterprises, noting the country’s robust online presence.
“With its young and highly-active online population, the Philippines is an important market for Kaspersky Lab. The global cybersecurity company has consistently kept an eye on the country’s state of cybersecurity through its Kaspersky Security Network,” it said.
The partnership agreement allows MSI-ECS to distribute at least eight of Kaspersky Lab’s products, namely Endpoint Security Cloud, Security for Microsoft Office 365, Endpoint Security for Business, Hybrid Cloud Security, Endpoint Security, Threat Management and Defense, Industrial Cybersecurity and Fraud Prevention.
“With this strategic partnership with MSI-ECS, we’re confident that we’d be able to provide the most comprehensive protection to local organizations which need the best support as they build the cybersecurity of their businesses and ICS environments,” Kaspersky Lab Southeast Asia General Manager Yeo Siang Tiong said in the statement.
Kaspersky Lab noted the wide network of MSI-ECS from carrying more than 40 major technology brands in its portfolio will help the company boost its presence in the Philippines.
“We believe the proven track record of MSI-ECS in the local IT industry and its extensive channel network will make it a strong ally for Kaspersky Lab in this part of the region,” Mr. Yeo added.
For its part, MSI-ECS said the partnership comes at a relevant time now that the government is highly supportive of improving cybersecurity in the country.
“The current steps being taken by our government to improve the state of cybersecurity in the Philippines clearly shows that the expertise Kaspersky Lab offers is highly relevant on the homefront,” MSI-ECS Philippines President and Chief Executive Officer Jimmy Go was quoted as saying. — Denise A. Valdez

Metro Ayala Cebu to reopen by mid-2019

METRO RETAIL Stores Group, Inc. (MRSGI) targets to complete the first phase of the rebuilding and recovery program of Metro Ayala Cebu by the middle of 2019, after the mall caught fire in January last year.
“We are well on our way to restoring the Metro Supermarket and Metro Department store in Ayala Center Cebu…We expect that the first phase of the redevelopment to be fully operational by mid this year as we continue to build a much better and more vibrant store for our patrons,” MRSGI Chairman and Chief Executive Officer Frank S. Gaisano said in a statement.
The listed firm’s Metro Ayala Cebu store was razed by fire that lasted two days in January 2018.
MRSGI then opened a temporary supermarket covering 900 square meters in Ayala Center Cebu three months after the incident.
Aside from rebuilding its Metro Ayala Cebu store, MRSGI is also pushing through with its expansion in Visayas and Luzon. The company opened Metro Department Stores and Supermarket at Ayala Malls Feliz in Pasig City and Bacolod last year. It also broke ground for Super Metro Hypermarket Baybay in Leyte.
MRSGI earlier said it looks to double its 2015 gross floor area to 800,000 square meters, with an investment of P10 billion over the five-year period through 2020.
The company currently operates 53 stores across Central, Western, and Eastern Visayas. It also has a presence in Central Luzon, Metro Manila, and South Luzon through three formats, namely department store, supermarket, and hypermarket.
MRSGI has recently named Manuel Luis C. Alberto as its new president and chief operating officer, following the retirement of Arthur Emmanuel.
The company’s net income went down by 17% to P454.93 million in the first nine months of 2018, after gross revenues also dipped seven percent to P22.97 billion.
Shares in MRSGI firmed up 1.86% or five centavos to close at P2.74 apiece on Wednesday. — Arra B. Francia

Demand for BSP’s term deposits rebounds

BSP
DEMAND for term deposits rebounded following the holidays. — BW FILE PHOTO

By Melissa Luz T. Lopez, Senior Reporter
DEMAND FOR term deposits recovered yesterday across all tenors, showing improved liquidity after some tightness observed during the holiday season.
Banks put forward P73.514 billion in bids for the term deposit facility (TDF) on Wednesday, surging past the P50-billion auction volume and the P46.086 billion received by the Bangko Sentral ng Pilipinas (BSP) last week.
Appetite improved across the board as demand recovered after Christmas, which sees a seasonal spike in demand for cash that leaves banks with a smaller stash of idle funds.
Bids for the seven-day tenor more than doubled this week, reaching P35.34 billion versus the P16.731 billion a week ago. This allowed the central bank to fill its P20-billion offering, and even pulled down the average yield to 5.0706% compared to the 5.0784% fetched previously.
The 14-day deposits also saw more action this week, with banks wanting to place as much as P23.297 billion, settling higher than the P20 billion on the auction block. This improved from the P15.092 billion which players wanted to park under the TDF on Jan. 2.
Despite this, the average yield inched up to 5.153% this week from 5.1319% as banks asked for returns ranging from 5.1-5.2%.
On the other hand, a minimal uptick was seen for the 28-day papers, which saw demand inch up to P14.877 billion versus P14.263 billion the past week. This was more than enough to fill the P10 billion that the BSP offered to sell, which also pulled up the average yield to 5.1694% from 5.1672%.
The TDF stands as the central bank’s primary tool to capture excess money supply in the financial system. Through the weekly auctions, the BSP ushers market and interbank rates closer to its desired range of 4.25-5.25% through the yields which they accept.
The window has seen narrower bids over the past few weeks as banks chose to hold more cash, in response to a seasonal demand from clients for Christmas. Yesterday’s demand is the highest seen since Dec. 12, which saw offers hit P85.065 billion.
For BSP Deputy Governor Diwa C. Guinigundo, this week’s auction shows that liquidity has started to return to normal levels.
“Given the oversubscription across maturities, we believe the exodus back to BSP of banks’ excess funds will continue at least for a couple of weeks more,” Mr. Guinigundo said in a text message to reporters.
“[O]ver the next few weeks, the large oversubscription would continue to soften as funds previously withdrawn from the BSP continue to return to the BSP itself… After the holidays, we should be seeing lower oversubscription as liquidity normalizes.”
The central bank is keeping its offer volume for next week steady at P50 billion — P20 billion apiece for the seven-day and 14-day tenors and P10 billion in the 28-day term deposits.

When the spice is right


By Joseph L. Garcia, Reporter
CUISINE and culture in many nations can be classified into several levels. As high culture and haute cuisine go hand-in-hand, so do home-cooking and pop culture. A restaurant called Siam Sukh Jai Thai Home Cooking in S Maison claims that they can serve Thai cuisine as it is found on the streets and homes of Bangkok.
“We don’t claim to be really hotel or high-class Thai food. Our ambition or purpose was to bring the way that Thai food [is] as my wife and I experienced it in Thailand — in the homes, and in the streets,” said the restaurant’s co-founder Digs Dimagiba (who was once Country Director for Facebook in the Philippines; he has since worked in a bank). Mr. Dimagiba shares credit for the restaurant with his wife, Des Dimagiba. Both lived in Thailand for spells in the early 2000s and the early 2010s.
“We believe that the food cooked at home, whether it’s in Thailand, or the Philippines, is actually the best kind of food,” he added during a tasting in December.
Be warned that the food is authentically hot — when this reporter went to the restaurant last month for a tasting, the heat from the dishes in Siam Sukh Jai was probably instrumental in temporary clearing up this reporter’s cold. The Thai Green Curry, for example, made me scribble “ouch” on my notes, while fresh spring rolls cooled my palate afterwards. I would advise ordering several bowls of rice to go through each dish, as well as downing them with copious amounts of milk tea. More remarkable is the traditional tom yum goong, spiced with kaffir lime leaves, galangal, and chilis. In your face and aggressive, it reminds one of the jungle.
There are several Thai restaurants in the Philippines, perhaps due to Filipino affinity for similar flavor profiles. Thai cuisine was tailor-fit to duke it out in the heat of Thailand. “When you experience Thai cooking in a hotel or someplace that’s extremely polished, the food, will, of course, be very well-polished,” said Mr. Dimagiba, speaking about the that home-cooking experience. As for food cooked in homes and the streets, he said, “Maybe it’s not as perfect… but it’s those little quirks… that tickle your palate.”
Going back to the tom yum goong, its in-your-face taste could be credited to the fact that they flew in a Thai chef as well as the spices and flavor bases for the dishes. For those items that won’t stand up to the rigors of shipping, Mr. Dimagiba planted his own — he has his own kaffir lime trees, for example.
While some people relish the beads of sweat on their lip that appear while dining, others may not, and for this, Mr. Dimagiba points them to less-challenging items in the menu. After all, he says, there are some dishes where the spiciness is part of the flavor. “Otherwise, we wouldn’t be true. And they wouldn’t experience it the way that we wanted to for them.”
Siam Sukh Jai Thai Home Cooking is at 2/L, S Maison, Marina Way, Mall of Asia Complex, Pasay City. For details call 821-6141.

Intel working with Facebook on AI chip coming later this year

INTEL CORP. said on Monday at the Consumer Electronics Show in Las Vegas that it is working with Facebook Inc. to finish a new artificial intelligence chip in the second half of this year.
The chips are Intel’s gambit to retain hold of a fast-growing segment of the artificial intelligence computing market but will face competition from similar chips from Nvidia Corp. and Amazon.com Inc.’s Amazon Web Services unit.
The new chip will help with what researchers call inference, which is the process of taking an artificial intelligence algorithm and putting it to use, for example by tagging friends in photos automatically.
Intel’s processors currently dominate the market for machine learning inference, which analysts at Morningstar believe will be worth $11.8 billion by 2021. In September, Nvidia launched its own inference chip to compete with Intel.
In November, Amazon also said it had created an inference chip. Amazon’s chip is not a direct threat to Intel and Nvidia’s business because it will not be selling the chips. Amazon will sell services to its cloud customers that run atop the chips starting next year. If Amazon relies on its own chips, it could deprive both Nvidia and Intel of a major customer.
Also at the Consumer Electronics Show on Monday, Intel said that Dell Technologies Inc. will feature Intel’s next generation of processors in its XPS line of laptops. The so-called 10-nanometer chips have been plagued by delays.
But Navin Shenoy, Intel’s data center chief, reiterated that the new chips will be available in laptops by the 2019 holiday shopping season and in data centers by early next year.
Also at the conference, Amnon Shashua, the head of Intel’s Mobileye self-driving car computer unit, said Mobileye has mapped out all of the roadways in Japan, using cameras that were already embedded in vehicles produced by Nissan Motor Co. Ltd. that come with Mobileye systems from the factory. Intel’s tech rivals such as Alphabet Inc. and Apple Inc. are gathering mapping data through special vehicles with cameras mounted on top of them. — Reuters

PSE: Shariah-compliant listed firms drop to 56


THE NUMBER of listed firms compliant with Islamic principles of finance dropped to 56 as of Dec. 25, according to the Philippine Stock Exchange (PSE).
A quarterly review posted on the PSE website on Tuesday showed the removal of Ayala Land, Inc., IRC Properties, Inc., Jollibee Foods Corp., Mabuhay Vinyl Corp., Philippine H2O Ventures, Inc., and SPC Power Corp. from the list of Shariah-compliant firms.
On the other hand, Greenergy Holdings, Inc., Macay Holdings, Inc., and Prime Orion Philippines, Inc. made it to the list.
The quarter ending Sept. 25 showed 59 firms to be compliant with Islamic finance principles.
Being Shariah-compliant means that companies are not involved in conventional interest-based lending and financial services such as insurance, mortgages and leasing, and other derivatives.
It also bars companies from engaging in businesses involving pork, alcohol, tobacco, arms and weapons, embryonic stem-cell research, hotels, gambling, casinos, music, cinema, and adult entertainment.
The PSE engaged IdealRatings, Inc., a firm specializing in screening securities for Shariah compliance, for the quarterly review. — Arra B. Francia

1...11,50511,50611,507...14,246Page 11,506 of 14,246
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube