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PLDT offers networking solutions to improve connectivity of enterprise customers

PLDT Enterprise of PLDT, Inc. announced on Thursday, June 21, it will start offering software-defined wide-area network (SD-WAN) technology to its enterprise customers, aiming to help businesses in digitization efforts.
In a statement, the listed company said the technology is intended to help businesses become “more agile” in its workflow by providing better connection.
“SD-WAN interconnects enterprise networks, data centers, and the cloud with each other—enabling customers to be agile despite geographical distances via a powerful and secure platform,” it said.
PLDT Vice President and Head of Enterprise Core Business Solutions Jojo Gendrano said they are partnering with Cisco for its SD-WAN offer. — Denise A. Valdez

City Savings Bank gets BSP approval to acquire PR Savings

The Bangko Sentral ng Pilipinas has approved the plan of UnionBank of the Philippines’ savings lending arm to acquire Philippines Resources Savings Bank Corp. (PR Savings) of the Ropali Group.
The Abotiz-led lender said in a regulatory filing Thursday that the acquisition of 100% common shares in PR Savings by UnionBank’s subsidiary City Savings Bank was approved by the BSP.
In a letter sent on June 20, the central bank has also authorized in principle the merger between PR Savings and City Savings, with the latter as the surviving entity.
“The acquisition is in line with the company’s goal to expand its mass market reach consistent with its vision to promote inclusive growth in the country,” UnionBank said in the disclosure.
In January, City Savings said it has signed a share purchase agreement with the Ropali Group to fully acquire PR Savings. — Karl Angelo N. Vidal

BSP relaxes rule on rediscount loans

Banks will soon have more leeway in acquiring short-term funding from the Bangko Sentral ng Pilipinas (BSP) as the regulator is accepting syndicated loans as collateral for rediscounting.
BSP Circular 1008 has relaxed the central bank’s rules on rediscount loans by the “removal of the P3 billion cap per bank on rediscountable National Food Authority papers and the acceptability of syndicated loans and loans with underlying real estate collaterals under Mortgage Trust Indentures for rediscounting and emergency loans.” — Melissa Luz T. Lopez

PSEi slides 2.25% after BSP rate hike

By Arra B. Francia, Reporter
Local equities plummeted on Thursday as bearish sentiments hounded the country, following the Bangko Sentral ng Pilipinas (BSP)’s second rate hike and the continued exit of foreign funds from the Philippine market.
The bloodbath continued for the sixth straight day at the Philippine Stock Exchange index, spiraling down 2.25% or 163.47 points to 7,098.15. The local market is now officially in bear territory, as it has declined by more than 20% from its peak of 9,078.37 intraday of Jan. 29.
The broader all shares index also gave up 2.04% or 91.01 points to close at 4,369.21.
“It seems to me that the decline was caused by a combination of factors: there’s pressure on local rates to rise all the way up to 2019, no let up in foreign selling (to date they’ve let go of P60 billion worth and they still have about P120 billion to sell),” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a text message.
Net foreign outflows swelled to P2.27 billion, significantly higher than the P772.56 million recorded on Wednesday.
The BSP during its June 20 policy meeting decided to hike rates by 25 basis points, marking the second increase for the year in a bid to temper rising inflation and to keep local yields competitive.
“We were expecting the BSP to wait to hike in August, but policymakers may have opted to act sooner given upside risks to already-above-target inflation in coming months and the further depreciation in the Peso (one of the worst-performing currencies in Asia) since early June,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
All sectoral indices ended in negative territory, led by the property sub-index which lost 3.54% or 125.62 points to 3,421.98. Services followed with a decline of 3.46% or 49.67 points to 1,386.68.
Industrials slumped 1.98% or 208.08 points to 10,301.43, followed by mining and oil that shed 1.83% or 177.17 points to 9,529.67. Holding firms dropped 1.68% or 120.88 points to 7,058.28, while financials lost 1.09% or 19.67 points to 1,788.73.
A total of 1.91 billion issues switched hands valued t P7.89 billion, higher than the previous session’s P5.33 billion. Decliners outpaced advancers, 166 to 36, while 41 issues remained unchanged.

IRC to implement structural changes ahead of Makati subway construction

IRC Properties, Inc. is making key structural changes to its company in preparation for the construction of its proposed subway system in Makati.
In a disclosure to the stock exchange on Thursday, June 21, IRC said its board of directors has approved to change the company name to Philippine Infradev Holdings, Inc. (PIHI). It will then act as a holding firm for investments in real estate development and infrastructure project.
“The amendment shall enable the company to expand its business operations to include infrastructure and real estate development projects,” the company said. — Arra B. Francia

Revolution Precrafted enters Bahrain

Revolution Precrafted Properties, Ltd continues its global expansion in Bahrain, after striking a deal to supply residential villas for the country’s Property One Investment Company (Property 1).
In a statement issued Thursday, June 21, the property technology firm said it has signed an agreement with Property 1 where it will design and supply up to 500 modular residential villas for Property 1 and its clients over the next five years. The 200-square meter villas will have four bedrooms each, valued from $320,000 and up.
The company will also design and supply modular residential villas specifically for the Middle East through precast and prefab technology. The villas will then be supplied to different housing developments in the country.
Revolution Precrafted expects to finalize the design and start supplying the villas to clients by 2019. — Arra B. Francia

Trump orders halt to family separations

WASHINGTON — President Donald Trump ordered an end to the separation of migrant children from their parents on the US border Wednesday, reversing a tough policy under heavy pressure from his fellow Republicans, Democrats and the international community.

The spectacular about-face comes after more than 2,300 children were stripped from their parents and adult relatives after illegally crossing the border since May 5 and placed in tent camps and other facilities, with no way to contact their relatives.

Despite the order, there was no plan in place to reunite the thousands of children already separated from their families, according to multiple US media reports citing officials from the Health and Human Services Department (HHS).

Those youngsters would remain separated while their parents were under federal custody during immigration proceedings, according to The New York Times, before officials backed off those comments late Wednesday.

“It is still very early and we are awaiting further guidance on the matter,” said Brian Marriott, senior director of communications at HHS’s Administration of Children and Families.

“Reunification is always the ultimate goal,” he said.

Pictures and accounts of the separations sparked outrage and a rebellion among Republicans in Trump’s own party, as well as international accusation that the US was committing human rights violations.

“What we have done today is we are keeping families together,” Trump said as he signed the executive order. “I didn’t like the sight or the feeling of families being separated.”

At a later campaign-style rally of supporters in the northern state of Minnesota, he reiterated that the change does not mean a softening at the border.

“We will keep families together, but the border is going to be just as tough,” he said.

Trump then accused rival Democrats of putting “illegal immigrants before they put American citizens.”

For weeks, Trump had insisted he was bound by law to split the children from their parents and that only Congress could resolve the problem — before he radically shifted gears.

His daughter and advisor Ivanka had reportedly urged her father to end the separations, while First Lady Melania Trump made a rare political plea, saying the country needs to govern “with heart.”

“We want security for our country,” the president said Wednesday. “And we will have that — at the same time, we have compassion.”

The order says the Department of Homeland Security — and not the Justice and Health and Human Services Departments, as under previous policy — would have continuing responsibility for the families.

It also suggests the government intends to hold the families indefinitely by challenging an existing statute, the 1997 Flores Settlement, that places a 20-day limit on how long children, alone or with their parents, can be detained.

That move could lead to new legal battles for the administration.

Trump said there was a need to sustain his “zero tolerance” policy to prevent crime, which he blames illegal immigrants for.

“We still have to maintain toughness, or our country will be overrun by people, by crime, by all of the things that we don’t stand for and we don’t want,” he said.

‘DEEPLY DISTURBING’ IMAGES
Earlier, as countries marked World Refugee Day Wednesday, global leaders assailed Trump for the separations.

British Prime Minister Theresa May, Canadian Prime Minister Justin Trudeau, the Council of Europe and Pope Francis all took issue with the “zero tolerance” policy.

May said images of migrant children kept in cage-like units were “deeply disturbing,” and the Council of Europe, a global human rights watchdog, said Trump had abdicated any claim to moral leadership in the world.

After a downturn last year, since October, the number of migrants seeking to cross the southwest US border from impoverished Guatemala, El Salvador and Honduras, as well as from Mexico, has surged.

From March to May this year, more than 50,000 people a month were apprehended for illegally crossing the border from Mexico.

With the legal system swamped, the Department of Defense on Wednesday said 21 military lawyers would be seconded to the Department of Justice for about six months to help prosecute “misdemeanor improper entry and felony illegal reentry cases.”

Nearly all of the arriving families, and many others, have officially requested asylum, citing the incessant violence in their home countries.

The policy, with mandatory separation of children from adults, was announced May 7 as a deterrent.

The issue struck an emotional chord, with accounts of children screaming and crying in facilities prepared for them.

Gene Hamilton, a senior Justice Department official, said the executive order was a “stopgap” move and that Congress needs to pass new legislation to give the president more powers to fight illegal immigration.

Current laws including the Flores Settlement, he argued, simply encouraged people to enter the country with their children, expecting to be caught and then released into US society.

Democrats and Republicans had at least two bills crafted Wednesday to address broader immigration issues, but it was not clear if any had adequate support to pass.

But Democrats and rights groups were immediately critical of the plan to change the Flores Settlement.

“The Flores Settlement prohibits the indefinite detention of children — even with their families — and any order to undermine this critical protection will be immediately challenged in court,” said senior Democratic Senator Dick Durbin.

“The Trump Administration must reverse its policy of prosecuting vulnerable people fleeing three of the most dangerous countries on earth, who are attempting to seek safe haven in America.” — AFP

Strike a pose: International Yoga Day stretches around world

NEW DELHI, India — Downward-facing dogs, cobras and warriors sprouted all over Asia on Thursday, as the fourth annual International Yoga Day got under way.

Indian Prime Minister Narendra Modi, whose proposal for the global event won UN approval in 2014, led the way, performing his asanas with over 50,000 others in the northern city of Dehradun.

People gathered at a sprawling forest research institute — snakes and monkeys were removed in advance — before dawn for the communal session involving the yoga-mad premier, an AFP reporter at the scene said.

“The way to lead a calm, creative & content life is Yoga. It can show the way in defeating tensions and mindless anxiety,” Modi said on Twitter.

“Instead of dividing, Yoga unites. Instead of further animosity, Yoga assimilates. Instead of increasing suffering, Yoga heals,” the 67-year-old said.

Other gatherings took place in the capital New Delhi with 10,000 enthusiasts registered. Several hundred braved unhealthy pollution levels and hot and humid weather to lay out their mats in the Lodi Gardens park.

At least 5,000 events big and small took place across India, but the largest was expected to be in Mysore in the south with more than 60,000 taking part, according to organisers.

Yoga was also performed on board the Japanese naval ship JS Ise and on the Indian Navy’s INS Sahyadri taking part in military exercises in the western Pacific, the Indian Navy said.

Submarine staff from India’s Eastern Naval Command were pictured doing yoga poses, as were soldiers in Secunderabad.

Artist Sudarsan Pattnaik created a special sand sculpture with the message “Yoga for Peace and Harmony” on a beach in the eastern city of Puri.

The artwork featured Modi, US President Donald Trump, Chinese leader Xi Jinping, Russian President Vladimir Putin and North Korean leader Kim Jong Un all in the lotus position.

In Tokyo, around 80 people — mainly in their 60s and 70s — took part in a special yoga session organised through the Indian Embassy in the Zojoji Temple, the two-storey red shrine in the shadow of Tokyo Tower.

Among those being put through their paces by the guru was a Japanese MP, a member of the yoga group in the Japanese parliament.

Other events were scheduled around the world later, including in Kilkenny in Ireland, Bahrain, Brisbane in Australia and in Milan.

In the Italian city, participants will perform 108 “sun salute” cycles.

On the northern facade of the United Nations building in New York a laser projection of yoga postures has been in place since Monday.

‘NOT TO WORRY’
Modi is keen on portraying his physical prowess, last week posting on Twitter his morning yoga routine involving plodding around a tree and flexing over a boulder.

He has also spearheaded an initiative to reclaim the discipline as a historic part of Indian culture since his Hindu nationalist government came to power in 2014.

Yoga has boomed in recent decades, with millions practising it regularly, although in the West it is often more of a gymnastic than a spiritual activity.

But this doesn’t bother the spiritual head of the biggest ashram or retreat in Rishikesh, the Indian city on the banks of the holy Ganges river considered the world yoga capital.

“At least people are doing it. One day you walk the path, the next day you find the truth also,” Swami Chidanand Saraswati told AFP.

“As the Sun is for all, the Moon is for all, rivers are for all, in the same way yoga is for all,” he said. “Not to worry!” — AFP

Which regions have the most banks?

By Mark T. Amoguis, Research
By the end of 2016, the Philippines had 11,129 bank offices, comprising of 602 head offices and 10,527 other offices.
At that time, nearly a third or 3,504 of these banking offices cater to customers in the National Capital Region (NCR).
NCR also led the other regions in terms of bank density ratio. Computed by dividing the number of banks in a region by the number of municipalities, Metro Manila yielded a bank density ratio of 206.1, which means that on the average, the nation’s capital had 206 bank offices in each of its municipalities.
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Asian markets edge up as calm returns but fears remain

HONG KONG — Asian markets edged up tentatively Thursday as a sense of stability returns after the turmoil earlier in the week, though investors remain alert to any signs of another flare up in the China-US trade spat.

Bargain buyers took advantage of the cheap valuations after Tuesday’s blow-out that came in response to the world’s top two economies threatening each other with tariffs on a mind-boggling amount of imports.

However, analysts warned the next plunge could come at any moment, while central bankers voiced concerns about the impact a trade war could have on the global economy.

US traders gave their Asian counterparts a mixed lead, with the Nasdaq hitting a new record close thanks to a surge in tech giants, while the Dow and S&P 500 finished in the red.

Tokyo ended the morning session 0.8 percent higher, with the yen weakening as investors shifted out of the safe-haven unit.

Hong Kong edged up 0.3 percent and Shanghai rose 0.5 percent — the two were the worst hit by Tuesday’s selling frenzy — and Sydney jumped more than one percent while Seoul was marginally higher.

Wellington jumped more than one percent after data showed that while New Zealand’s economy cooled in January-March, interest rates are not expected to rise in the near term.

Stephen Innes, head of Asia-Pacific trading at OANDA, said markets were “unsure if we’re in the calm after the storm, the lull between storms or even in the eye of the hurricane”.

But he added: “There’s certainly a pattern forming that while equity markets quiver during the trade dispute, stocks come roaring back with (Facebook, Apple, Amazon, Netflix and Google) consistently leading the charge.

“Despite the huge question mark over global trade, Wall Street quickly returns focus to the US economy, which there is no denying is doing exceptionally well.”

CENTRAL BANK CONCERNS
Trump’s protectionist America First agenda has also seen him threaten tariffs on steel and aluminium from the European Union and on Wednesday the bloc outlined retaliatory measures against several US goods such as blue jeans and motorcycles.

The upheaval has spooked the heads of the world’s central banks, who said Wednesday they were seeing confidence already being hit, forcing them to reconsider their forecasts for growth.

While the US economy is humming, Federal Reserve boss Jerome Powell warned at a European Central Bank conference in Portugal: “Changes in trade policy could cause us to have to question the outlook.

“For the first time, we’re hearing about decisions to postpone investment, postpone hiring.”

His remarks were in line with those of his peers including from Japan and Australia, while ECB head Mario Draghi said: “There have been lessons one can learn from the past. They are all negative.”

On currency markets the pound continues to struggle as British Prime Minister Theresa May pushed through key Brexit legislation but still faces pressure to pick up the pace of talks with the EU ahead of a planned March withdrawal.

Oil prices were mixed following a dip in US stockpiles and ahead of the start Friday of a key OPEC meeting, where kingpin Saudi Arabia and non-member Russia are pushing for an increase in output.

While a hike is expected some members of the cartel are against the move, including Iran and Venezuela who complain the proposed hike is the result of pressure from the United States.

“The market is still in search of some semblance of clarity,” Innes said, but added: “While clarity brings power, I suspect it will also bring waves of volatility as we’re indeed headed for some collision.” — AFP

Canada to legalize cannabis October 17, Trudeau says

OTTAWA, Canada  — Canada will become the first G7 country to legalize the consumption and cultivation of cannabis from October 17, Prime Minister Justin Trudeau announced Wednesday.

Both houses of parliament voted this week to legalize the drug for recreational use, making Canada the second country worldwide to do so after Uruguay’s move five years ago.

“We are committed to improving our system to better protect our youth and to take money away from organized crime,” Trudeau told a question session at the House of Commons.

He justified the delay to implement the law by noting that provinces requested the extra time to organize sales in authorized stores.

“We are accepting the request of the provinces, and we will be legalizing it as of October 17th, 2018,” Trudeau said.

Cannabis has been banned since 1923 in Canada, which legalized its therapeutic uses in 2001.

Under the new legislation, adults — either 18 or 19, depending on the province or territory — can legally buy, grow and consume cannabis in limited amounts.

Each Canadian household will be allowed to grow up to four plants at home, and one person may carry up to 30 grams (one ounce) of the drug in public.

Just prior to the announcement, the country’s leading cannabis producers reported a surge in stocks — with market leader Canopy Grown jumping 1.7 percent to Can$43.27 ($32.51 US) — following the Senate vote to legalize the soft drug.

‘DON’T DRIVE HIGH’
Health Minister Ginette Petitpas Taylor said she was “so proud” of the move.

“This historic legislation will end prohibition and replace it with a sensible, responsible and equitable cannabis policy,” she tweeted.

Public Safety Minister Ralph Goodale warned that driving while under the influence of cannabis or other drugs — or taking cannabis into or out of Canada — will remain illegal.

“Drug-impaired driving is extremely dangerous and can ruin your life in a heartbeat — don’t drive high,” he added.

Trudeau, who in 2013 said he had smoked a joint with friends “five or six times,” justified legalization on the grounds that it would take traffickers out of the equation and protect young people.

In an interview with AFP last month, Trudeau said the world was closely following Canada’s plans and predicted several nations would follow suit.

“There is a lot of interest from our allies in what we’re doing,” he said.

“They recognize that Canada is being daring… and recognize that the current regime (of prohibition) does not work, that it’s not preventing young people from having easy access to cannabis.”

The government will gain revenue from a market whose estimated value is Can$6-7 billion.

For each gram of cannabis sold at or below $10, a Can$1 excise tax will be imposed, and distributed between the federal government (receiving a quarter of the funds) and the provinces.

Federal and provincial consumption taxes will also apply — varying between 10 to 15 percent depending on the province.

Finance Minister Bill Morneau has estimated Can$400 million in fiscal revenue, with a goal to keep prices low in order to end the black market for the drug. — AFP

Global stocks mixed amid lingering trade war fears  

NEW YORK — World stock markets were a mixed bag on Wednesday as some investors fished for bargains and others gave in to anxiety over simmering trade tensions between China and the United States.

London and Frankfurt edged higher, mirroring earlier gains in Asia, while Paris was down at the European close.

Wall Street stocks were also mixed, with the Nasdaq jumping to a fresh record close and the Dow dipping.

Large tech companies such as Facebook and Microsoft scored solid gains, while Twenty-First Century Fox surged 7.5 percent after Disney lifted its bid for key assets of the media giant in the latest move in a burgeoning bidding war with Comcast.

Analysts said many market players could not get themselves to believe that US President Donald Trump would take the world into an all-out trade battle.

“The trade tensions will fade somewhat in coming months either because Trump finally strikes some trade deals with China and possibly even with the big EU or because markets and businesses get used to the noise,” said Holger Schmieding at Berenberg.

“On balance, we remain cautiously optimistic that Trump will either go for deals or at least not escalate tensions further and further throughout the summer,” he said.

But analysts also warned that fresh retaliatory moves could trigger another markets dive.

“Global equity bears (sellers) could transform the current rebound into a classical dead cat bounce if trade tensions between the United States and China continue to escalate,” predicted Lukman Otunuga, at FXTM.

European Trade Commissioner Cecilia Malmstrom said retaliatory tariffs against US goods such as blue jeans and motorcycles would go into effect Friday in response to US tariffs on imported aluminum and steel.

“We did not want to be in this position. However, the unilateral and unjustified decision of the US to impose steel and aluminum tariffs on the EU means that we are left with no other choice,” Malmstrom said in a statement on Wednesday.

US Commerce Secretary Wilbur Ross was grilled by US Senators over Trump’s trade policies, with Republicans such as Utah’s Orrin Hatch and Iowa’s Chuck Grassley balking at the risk to US industries and consumers.

“You are putting American jobs at risk, and you are destroying markets, both foreign and domestic, for American businesses of all types, sorts and sizes,” Hatch said.

Ross countered that in Trump’s view, the United States was already the loser in a long-standing trade war and was only now beginning to fight back.

OPEC FOCUS
Eyes are turning to OPEC’s crucial meeting as Saudi Arabia pushes, along with non-member Russia, to ease an output ceiling that has supported oil prices for 18 months.

The two major producers are facing stiff opposition at the June 22-23 gathering from nations that have benefited from the resulting higher revenues.

Saudi Arabia’s energy minister Khalid al-Falih said he was convinced OPEC members would “do the right thing” and agree to ease an oil production cap this week despite strong resistance from arch foe Iran. — AFP