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Quo warranto petition vs Sereno ‘proper path not taken’ — SolGen

Solicitor General Jose C. Calida on Tuesday, March 27, submitted to the Supreme Court (SC) his reply to Chief Justice Maria Lourdes P.A. Sereno’s comment on his quo warranto petition seeking to void her appointment.

“For the first time in the country’s history, the Solicitor General is asking this Honorable Court to remove a Chief Justice from office,” the 64-page reply sternly stated in its first lines. It added:

“The Solicitor General has chosen the path that until now has not been taken, that is to remove the Chief Justice from office.”

Mr. Calida filed his quo warranto petition last March 6, which urged the high court to void Ms. Sereno’s appointment for not fully submitting her Statements of Assets, Liabilities, and Net Worth (SALN) to the Judicial and Bar Council (JBC) as a requirement for the post.

In response, Ms. Sereno, who is also facing impeachment for allegedly not disclosing her complete wealth, on March 19 asked the SC to dismiss Mr. Calida’s petition for lack of merit and for lack of jurisdiction, saying primarily that she can only be removed from her post through impeachment.

The Solicitor General, for his part, argued in his new reply “the Constitution does not exclude quo warranto as a remedy to assail the validity of (Ms. Sereno’s) appointment as Chief Justice and cause her ouster from office.”

“Plainly stated, the 1987 Constitution does not state anywhere that impeachment is the sole means of removing an impeachable officer,” said the reply.

It added, among its many arguments: “her failure to file her SALNs in accordance with the requirements of the Constitution and relevant laws shows that she is not of proven integrity,” which Mr. Calida said was “an indispensable qualification for appointment to the Judiciary.”

He stressed “in view of Respondent’s failure to establish her integrity, declare the office of the Chief Justice of the Republic of the Philippines vacant.”

In addition to the arguments listed on his reply, Mr. Calida also pointed out several instances that “(revealed), that she did, in fact, commit a litany of falsehoods.”

Mr. Calida accused Ms. Sereno of filing her SALNs late, fabricating her 2006 SALN, and not declaring pieces of jewelry valued at P15,000 in her 1993 SALN.

In a press statement, the Chief Justice revealed that the JBC relaxed the SALN requirement for all applicants to the post including Senior Associate Justice Antonio T. Carpio and Associate Justice Teresita L. De Castro.

Mr. Carpio and Ms. De Castro were quick to clarify they submitted their required SALNs to the JBC. — Dane Angelo M. Enerio

Asia stocks gain as trade fears subside; yen falls

Stocks in Asia followed their U.S. counterparts higher on signs that an escalation of trade tensions was beginning to ease. The yen slipped and the South Korean won rallied as news emerged of a surprise visit to China by North Korea’s leader.

Japan’s benchmarks gained at least 2 percent, while U.S. equity futures built on a Monday rally that saw the S&P 500 Index post its biggest one-day jump since August 2015. The won was the best performer among Asian emerging-market currencies as Kim Jong Un was said to be making an unannounced visit to Beijing, his first known trip outside North Korea since taking power in 2011. The yen was lower as risk-on sentiment returned.

The resurgence in risk appetite emerged as the Trump administration was said to be urging China to lower tariffs on cars and open its market to U.S. financial services as part of talks to resolve a rise in trade tensions. U.S. Treasury Secretary Steven Mnuchin and his Chinese counterpart have been discussing the trade deficit between the two countries and were committed to finding a mutually agreeable way to reduce the gap and help China avoid tariffs on $50 billion of exports to the U.S.

While global equities recovered losses sustained on Friday, the MSCI All Country World Index remains about 8 percent lower than its record high reached in January and Japan’s Topix index is still about 10 percent below a January high despite Tuesday’s rally.

“Our base case is that there won’t be an all out trade war,” Craig Macdonald, Aberdeen Standard Investments’ global head of fixed income, said in a phone interview. “It’s a way of applying pressure to get some wins by Trump.” Still, it will lead to more volatility, Macdonald added. “Our sense is that they will get some wins rather than all out war, but it’s not something you can just dismiss. The tail risk is higher.”

Elsewhere, the yield on India’s benchmark 10-year bond fell 24 basis points to 7.38 percent, set for its biggest decline since November 2013, as the government surprised the market by reducing the size of its borrowing. Oil traded above $65 a barrel.

Here’s a list of of the main events coming up this week:

U.S. personal income and spending data for February are due to be released on Thursday. The big four euro-area economies are due to release March CPI readings. The U.S. Treasury will probably auction about $294 billion of bills and notes this week, its largest slate of supply ever.

And these are the main moves in markets:

Stocks

The MSCI Asia Pacific Index advanced 1.3 percent as of 1:48 p.m. Tokyo time. Topix index climbed 2.3 percent. Hong Kong’s Hang Seng Index rose 0.9 percent. Kospi index rose 0.6 percent. Australia’s S&P/ASX 200 Index increased 0.7 percent. Futures on the S&P 500 Index rose 0.4 percent.

Currencies

The Bloomberg Dollar Spot Index was flat. The Japanese yen fell 0.2 percent to 105.59 per dollar. The euro rose less than 0.1 percent to $1.2451. The won jumped 1 percent to 1,070.15 per dollar.

Bonds

The yield on 10-year Treasuries was unchanged at 2.85 percent. Japan’s 10-year yield climbed four basis points to 0.065 percent. Australia’s 10-year yield held at 2.66 percent.

Commodities

West Texas Intermediate crude rose 0.4 percent to $65.82 a barrel. Gold traded at $1,354.43 an ounce. LME copper gained 1.5 percent to $6,703.00 per metric ton. — Bloomberg

China asks US to offset trade loss due to metal tariffs

China asked the US to provide compensation for lost trade due to President Donald Trump’s proposed tariffs on steel and aluminum, in a preliminary step that could lead to a dispute between the two nations at the World Trade Organization.

In two filings with the WTO on Monday, China dismissed the US assertion that the metal tariffs were instituted on national security grounds, arguing instead that they were safeguard measures — temporary trade restrictions aimed at protecting domestic producers.

China responded to the US action by threatening to impose tariffs on $3 billion of US imports — including agricultural, steel and aluminum products — and its ambassador to the U.S. said all options are on the table, though the Asian nation doesn’t want a trade war. The levies are expected to affect $689 million worth of Chinese steel and aluminum exports to the US, according to data published by the Peterson Institute for International Economics.

“Less than 3 percent of the US imports of steel came from China, so it really baffles us how such a low rate of imports constitutes a threat to US national security,” Chinese Ministry of Foreign Affairs spokeswoman Hua Chunying said Tuesday at a briefing in Beijing. “We have good reasons to question the legality and legitimacy of many actions taken by the US on the grounds of national security.”

If the US rejects China’s argument that the measures are safeguards, China may have recourse to ask the WTO to mediate the disagreement in a formal dispute proceeding. China said it reserved the right to file a dispute at a later date, according to the filings.

Separately, the European Union took the first step toward protecting EU-based steel manufacturers on Monday when the European Commission opened a “safeguard” probe into whether the 25 percent levy on foreign steel imposed last week by Trump is diverting worldwide shipments to the EU market.

The probe marks the defensive part of a three-pronged strategy that the EU has drawn up to respond to the U.S. steel tariff and to a 10 percent levy on foreign aluminum. — Bloomberg

OPMC shareholders approve venture into natural gas

Listed oil exploration company Oriental Petroleum and Minerals Corp. (OPMC) has secured the approval of its stockholders to venture into the upstream and downstream natural gas projects of the government while also obtaining their nod for the extension of its corporate life by another 50 years.

OPMC, which is marking its 50th year in December next year, told the stock exchange on Tuesday, March 27, that it might also consider venturing into renewable energy (RE) projects “of all kinds,” being one of the active industry players in the upstream petroleum energy exploration and production.

“Also, to include venture in upstream and downstream natural gas projects of the government through Department of Energy (DoE),” the company said, adding that it has the legal, technical and financial qualifications to branch out into other energy sectors.

OPMC will be amending its articles of incorporation, specifically its secondary business purpose, to allow it to invest or engage in the business of power generation “in all its aspects.”

The amendment will also allow the company to invest or engage in the the exploration, development, utilization and commercialization of renewable energy resources, such as biomass, solar, wind, hydropower, geothermal and ocean energy resources. — Victor V. Saulon

Oil advances as easing trade tensions counter oversupply fears

Oil traded above $65 a barrel as global trade tensions showed signs of easing, countering concerns that U.S. crude stockpiles may have resumed their expansion last week.

Futures in New York rose 0.3 percent, remaining near the year’s highest close set in January at $66.14. A resurgence in risk appetite has helped lift markets from equities to commodities after a report that the Trump administration is urging China to lower tariffs on cars during talks to calm trade tensions. Yet a small estimated increase in U.S. inventories is keeping a lid on oil-price gains.

Oil has recovered near January highs after President Donald Trump last week appointed John Bolton as his national security adviser, signaling the U.S. may pursue a more hard-line approach against Iran and disrupt outflows from the OPEC member. While global stockpiles are tightening in a sign that the Organization of Petroleum Exporting Countries’ production cuts are working, fears still remain that surging U.S. production could thwart those efforts.

“Oil prices gained and now they’re testing this key resistance level” of the January high, said Hans Van Cleef, senior energy economist at ABN Amro. “We’re waiting for the inventory data to see if it can push prices higher. Markets expect them to remain little changed, so any surprise drop could do the trick.”

West Texas Intermediate crude for May delivery traded at $65.76 a barrel on the New York Mercantile Exchange, up 21 cents, at 11:05 a.m. London time, after falling 33 cents on Monday. Total volume traded was about 28 percent below the 100-day average.

Brent for May settlement rose 27 cents to $70.39 a barrel on the London-based ICE Futures Europe exchange, after dropping 33 cents on Monday. The global benchmark traded at a $4.60 premium to WTI.

Equity Rally

European stocks rallied, tracking gains across Asia as investors began to recalibrate the chances of an all-out trade war. U.S. Treasury Secretary Steven Mnuchin said on Fox News that he’s optimistic his country can reach a truce with China on trade.

U.S. stockpiles may have added 450,000 barrels last week, rising for the fourth time in five weeks, according to a Bloomberg survey before Energy Information Administration data due Wednesday. A week earlier, U.S. production increased for a fourth week to a fresh record. — Bloomberg

DENR calls for more investments in ‘green infrastructure’

The Department of Environment and Natural Resources called for both the public and private sectors to invest in “green infrastructure”.

In a statement on Tuesday, March 27, Environment Secretary Roy A. Cimatu said the protection of ecosystems likewise can provide the security to the surrounding communities.

“Countries highly vulnerable to natural disasters, like the Philippines, need to invest more in green infrastructure,” he added.

“Integrating green with grey or traditional infrastructure creates cost-effective, climate resilient communities.”

Mr. Cimatu also highlighted the need to implement nature-based solutions such as planting trees to combat both solid and water waste management.

“Nature-based solutions have the potential to solve many water challenges. Nature can heal itself if abuses are mitigated before they become irreversible,” he added.

The DENR last week awarded individuals, group and programs that have developed nature-based solutions to address pollution.

Mr. Cimatu said that the ceremony was “timely”, given the ongoing crisis in Boracay where a number of establishments have violated environmental laws and a number of the wetlands has been inhabited by informal settlers.

During the awarding ceremony, various government officials and private sector representatives also pledged to commit to the United Nations resolution on the International Decade for Action: Water for Sustainable Development 2018-2028. — Anna Gabriela A. Mogato

Peso weakens ahead of trading break

The peso weakened against the dollar on Tuesday, March 27, in preparation of the market inflow on Wednesday.

The local currency ended Tuesday’s session at P52.32 versus the greenback, 11.5 centavos weaker than the P52.215-per-dollar finish on Monday.

The peso opened the session stronger at P52.15 against the dollar, while its best showing stood at P52.135. Its intraday low was at P52.33-per-greenback.

Dollars traded increased to $712.9 million from the $688.9 million traded on Monday.

A trader told BusinessWorld yesterday that he saw strong dollar demand late afternoon, dampening the local currency near its intraday low.

“I think the upsurge was due mostly on covering of sell flow tomorrow,” the trader said. “We are expecting large amount of inflow come tomorrow that’s why there’s short covering today.”

Meanwhile, Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, attributed the weak peso to the higher oil prices in the world market.

“Although the US dollar value dropped, it seems the downward pressure today came from the lingering tension in the Middle East, pushing the Brent higher,” he said in a text message.

According to a report from Reuters, the oil price rose on Monday, with the Brent crude futures opening above $70 per barrel for the first time since January.

The higher crude prices was due to the expectations that Saudi Arabia may continue the supply cut until 2019, and was also due to the concerns that the US may re-introduce sanctions against Iran. — Karl Angelo N. Vidal with Reuters

 

SEC approves San Miguel Pure Food’s name change

San Miguel Pure Foods Company, Inc. (SMPF) said it has secured the Securities and Exchange Commission (SEC)’s approval to amend its name and primary purpose, among others, to reflect the consolidation of the San Miguel group’s traditional businesses.

In a disclosure to the stock exchange on Tuesday, March 27, SMPF said the SEC has approved the change of its corporate name to San Miguel Food and Beverage, Inc. on Mar. 23. This followed the approval of SMPF’s shareholders to change the company’s name and primary purpose to include its engagement in the alcoholic and non-alcoholic beverage business. — Arra B. Francia

PCCI calls for government to reconsider plan to shut down Boracay

The Philippine Chamber of Commerce and Industry (PCCI) has called on the government to hear out stakeholders before finalizing its shutdown on Boracay establishments.

In a Tuesday statement, the largest umbrella group of businesses with about 35,000 members, said the total closure will be “detrimental to the local economy of Boracay and the entire Philippine tourism industry.”

“PCCI appeals that those who are compliant should not be punished and suffer the same fate as those who have short-circuited the environmental laws,” the group added. — Janina C. Lim

Stocks bounce back as investors hunt for bargains

Shares bounced back past the 8,000 level on Tuesday, March 27, with investors going bargain hunting after the main index dipped below the record territories in previous weeks.

The 30-member Philippine Stock Exchange index recovered from a two-day slump, gaining 1.445 or 114.65 points to close at 8,047.03. The all-shares index also climbed 1.21% or 57.79 points to finish at 4,854.46.

“Valuations were likely the main driver of today’s rally since the index is already trading at historic lows in terms of P/E. Technical indicators also point to the index being oversold,” China Bank Securities, Corp. Research Director Garie G. Ouano said in a text message.

Regina Capital Development Corp. Managing Director Luis A. Limlingan also attributed the market’s increase to the performance of global markets on Monday.

“Philippine markets got a boost from US markets making a huge comeback to help it with an early window dressing,” Mr. Limlingan said in a mobile phone message.

The Dow Jones Industrial Average jumped 2.84% or 669.40 points to 24,202.60, while the S&P 500 index rallied 2.72% or 70.29 points to 2,658.55. The Nasdaq Composite index meanwhile closed 3.26% or 227.88 points higher to 7,220.54.

Fears on a looming trade war between the US and China have also started to ease, after the Chinese government said it is open to negotiate with the former. The Chinese government said on Monday that it will maintain trade negotiations and ease access to American businesses.

The local market will suspend its operations on Thursday and Friday, in line with the Lenten break. — Arra B. Francia

Government to auction off P325 billion worth of securities in second quarter

The government is set to borrow P325 billion from the domestic capital market in the next quarter through government security auctions, the Bureau of the Treasury (BTr) announced on Tuesday, March 27.

In a memorandum posted on its Web site, the Treasury said it will auction off P195 billion of Treasury bills (T-bills) and P130 billion of Treasury bonds (T-bonds) in the second quarter of 2018.

The planned borrowing in the April-June period is higher than the P240 billion it offered in the first quarter and the P200 the Treasury placed on the auction block in the last quarter of 2017.

Treasury auctions will now be held twice a week in the second quarter, compared with the once-a-week offering in the January-March period. — Karl Angelo N. Vidal

Palace maintains conditions for resuming peace talks with rebels

Malacañang on Tuesday, March 27, reiterated its conditions for the resumption of the peace talks with the Communist Party of the Philippines- New People’s Army (CPP-NPA).

“As before, we reiterate that there must be an enabling environment that must be present for the desired resumption of peace talks such as genuine sincerity on the part of the CPP-NPA-NDF. They must cease their hostilities against innocent civilians and government forces; end their extortion activities, violent streaks and wanton killings; lay down their arms and return to the fold of law and restart to live normal lives,” Presidential Spokesperson Herminio Harry L. Roque, Jr. said in a statement.

At least 61 congressmen backed the filing of House Resolution (HR) 1803 on March 22 urging President Rodrigo R. Duterte to resume peace negotiations with communist rebels.

The spokesman noted that even without the peace talks, “the government’s efforts at forging peace with communist rebels have been gaining ground, as evidenced by the surrender of NPA fighters.”

“Rest assured that the government will exhaust any and all means to achieve lasting peace towards unity and progress,” he added. — Arjay L. Balinbin

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