Home Blog Page 12100

NAIA temporarily closes runway after Chinese aircraft stalls

A Xiamen Airlines aircraft suffered from runway excursion after landing at the Ninoy Aquino International Airport (NAIA) late evening on Thursday, Aug. 16, the Civil Aviation Authority of the Philippines (CAAP) reported on Friday, Aug. 17.
“Xiamen Airlines Boeing B737 type aircraft with flight MF8667 landed at NAIA’s runway 24 at 11:55 p.m. on Aug. 16 and encountered runway excursion after landing. The aircraft is now at a grassy area near the perimeter road in front of the Communications, Navigations, Surveillance-Air Traffic Management (CNS-ATM) antenna,” the CAAP said in a statement.
CAAP said all 157 passengers and eight crew were safe and was attended to by airport staff at NAIA’s Terminal 1. It also issued Notice to Airmen (NOTAM) B3808/18, announcing that NAIA’s runway 06/24 will be closed until 5 a.m. tomorrow, Saturday, Aug. 18, due to the disabled aircraft.
Affected flights due to the runway closure include:
Terminal 1 affected flights:
• Etihad Airways flight EY 421 (MNL-ABU DHABI)
• Saudi Airlines flight SV 871 (MNL-JEDDAH)
• Hongkong Airlines flight HX 781 (HONG KONG-MNL)
• China Airlines flight CI 711 (KHH – MNL)
• China Airlines flight CI 712 (MNL – KHH)
Terminal 2 affected flights:
• PAL flight PR 453 (MNL-GES)
• PAL flight PR 454 (GES-MNL)
• PAL flight PR 1845 (MNL-CEB)
• PAL flight PR 1846 (CEB-MNL)
• PAL flight PR 432 (MNL-TOKYO)
• PAL flight PR 408 (MNL-OSAKA)
• PAL flight PR 438 (MNL-NAGOYA)
• PAL Express flight 2P 2959 (MNL-CDO)
Terminal 3 affected flights:
• Cathay Pacific flight CX 908 (MNL-HONGKONG)
• Cathay Pacific flight CX 912 (MNL-HONGKONG)
• Cathay Pacific flight CX 907 (HONGKONG-MNL)
• Cathay Pacific flight CX 906 (MNL-HONGKONG)
• Cathay Pacific flight CX 901 (HONGKONG-MNL)
• Cathay Pacific flight CX 900 (MNL-HONGKONG)
Cancelled flights of Cebu Pacific:
• Cebu Pacific flight 5J 272 (MNL-HONGKONG)
• Cebu Pacific flight 5J 273 (HONGKONG-MNL)
• Cebu Pacific flight 5J 5054 (MNL-HONGKONG)
• Cebu Pacific flight 5J 5055 (NARITA-MNL)
• Cebu Pacific flight 5J 929 (MNL-BANGKOK)
• Cebu Pacific flight 5J 930 (BANGKOK-MNL)
• Cebu Pacific flight 5J 110 (MNL-HONGKONG)
• Cebu Pacific flight 5J 111 (HONGKONG-MNL)
• Cebu Pacific flight 5J 805 (MNL-SIN)
• Cebu Pacific flight 5J 806 (SIN-MNL)
• Cebu Pacific flight 5J 112 (MNL-HONGKONG)
• Cebu Pacific flight 5J 113 (HONGKONG-MNL)
• Cebu Pacific flight 5J 014 (MNL-DUBAI)
• Cebu Pacific flight 5J 015 (DUBAI-MNL)
• Cebu Pacific flight 5J 188 (MNL-INCHEON)
• Cebu Pacific flight 5J 187 (INCHEON-MNL)
• Cebu Pacific flight 5J 487 (MNL-BACOLOD)
• Cebu Pacific flight 5J 488 (BACOLOD-MNL)
Diverted Flights:
• Philippine Airlines flight PR 105 (SAN FRANCISCO – MNL – DIVERTED TO CEBU)
• Philippine Airlines flight PR 103 (LOS ANGELES – MNL – DIVERTED TO CLARK)
• Philippine Airlines flight PR 117 (VANCOUVER – MNL – DIVERTED TO CEBU)
• Philippine Airlines flight PR 115 (SAN FRANCISCO – MNL – DIVERTED TO CLARK)
• Philippine Airlines flight PR 119 (TORONTO – MNL – DIVERTED TO CLARK)
• Cebu Pacific flight 5J 187 (INCHEON – MNL – DIVERTED TO CLARK)
• Cebu Pacific flight 5J 804 (SIN – MNL – DIVERTED TO CLARK)

Oil’s on its longest losing run since 2015 on turmoil and supply

Oil headed for the longest run of weekly declines in three years, dragged down by everything from an emerging-market rout to rising global supplies and lingering concerns over a spat between the world’s biggest economies.
Futures in New York were headed for a 3.3 percent drop this week, their seventh straight decline. Turmoil in Turkey this month has reverberated across financial markets in developing economies, U.S. crude inventories expanded by the most since 2017, OPEC raised output in July while the outlook for a Chinese-American trade standoff is still uncertain.
The bearish sentiment has brought prices down to about $65 a barrel, near the lowest level since early June. While the standoff between China and the U.S. could ease after they showed a willingness to resume negotiations, an earlier breakdown in talks have left investors skeptical about the outcome.
Adding to macro-economic concerns is the risk of contagion from Turkey’s market rout, which seeped into the world of oil as investors grew anxious over a potential slide in global energy consumption from falling economic growth. Meanwhile, increased output from the Organization of Petroleum Exporting Countries as well as a surprise increase in U.S. crude stockpiles have added to worries that supplies may outstrip demand.
Stoking Concerns
“If the Turkish crisis worsens further, it will stoke concerns over the negative impact on the global economy, which already faces a U.S.-China trade war,” Satoru Yoshida, a commodity analyst at Rakuten Securities Inc. in Tokyo, said by phone. “Prices will also be negatively impacted if U.S. crude inventories continue to rise in the coming weeks as stockpiles tend to drop in August.”
West Texas Intermediate crude for September delivery traded at $65.40 a barrel on the New York Mercantile Exchange, down 6 cents, at 3:46 p.m. in Tokyo. Total volume traded was about 51 percent below the 100-day average. Prices are down about 12 percent over the last seven weeks and are headed for the longest stretch of weekly losses since August 2015.
Brent for October was at $71.36 a barrel on the London-based ICE Futures Europe exchange, down 7 cents. Prices have fallen about 2 percent this week. The global benchmark crude traded at a $6.54 premium to WTI for the same month.
Futures for December delivery were little changed near 500 yuan a barrel on the Shanghai International Energy Exchange. The contract is set to drop 1.8 percent this week.
Market Selloff
Broader risk assets also took a beating this week, with Asian equities to emerging market currencies and commodities sliding lower after the Turkish lira’s plunge sent shockwaves through markets. The U.S. escalated a diplomatic row over the release of an American pastor, tipping Turkey’s economy deeper into crisis and raising fears that the tumult will spread to other economies.
Meanwhile, America’s trade spat with China, which has been weighing on the market for the past few months, continued to leave investors skittish. This week’s announcement that the countries will hold talks in Washington in late August is spurring some optimism. Still, U.S. President Donald Trump is also pushing the Asian nation to offer more and said he won’t do “any deal until we get one one that’s fair to our country.”
As well as political concerns, oil market fundamentals have also dragged on prices. Nationwide stockpiles in the U.S. rose by 6.81 million barrels last week, despite expectations for a decline, while inventories at the key storage hub of Cushing in Oklahoma expanded for the first time since May. Also OPEC raised production in July, with Libya now producing more than 1 million barrels a day as it ramps up its production after a conflict in the nation led to disruptions. — Bloomberg

China, unsure of how to handle Trump, braces for ‘new Cold War’

Perhaps nowhere outside America’s heartland is Donald Trump given more credit than in Beijing.
In government offices and think tanks, universities and state-run newsrooms, there is an urgent debate underway about what many here see as the hidden motive for Washington’s escalating trade war against President Xi Jinping’s government: A grand strategy, devised and led by Trump, to thwart China’s rise as a global power.
“The Trump administration has made it clear that containing China’s development is a deeper reason behind the tariff actions,” said He Weiwen, a former commerce ministry official and now a senior fellow at the Center for China and Globalization, an independent research group filled with former bureaucrats.
These sentiments were echoed by many of the more than two dozen current and former government officials, business executives, state-affiliated researchers, diplomats and state-run media editors interviewed for this article. Most requested anonymity to speak their minds about sensitive matters.
A common suspicion ran through the conversations — that the tariffs are just a small part of Trump’s plan to prevent China from overtaking the U.S. as the world’s largest economy. Several people expressed concern that the two nations may be heading into a long struggle for global dominance that recalls the last century’s rivalry between the U.S. and Soviet Union.
“The trade war has prompted thinking in China on whether a new cold war has begun,” said An Gang, a senior research fellow at the Pangoal Institution, an independent research group in Beijing whose experts include former government officials. The dispute, he says, “now has military and strategic implications” — reflecting concern among some in Beijing that tensions could spill over into Taiwan, the South China Sea and North Korea.
The general pessimism is a major shift among China’s elite, many of whom had initially welcomed the rise of a U.S. president viewed as a transactional pragmatist who would cut a deal to narrow a $375 billion trade deficit for the right price. Now, with tariffs on $34 billion of goods already in effect and duties on another $216 billion in the pipeline, a majority saw no quick fix to a problem that is starting to rattle the country’s top leaders.
‘Smart Negotiator’
The turning point came a few months ago, when Trump put a stop to a deal for China to buy more energy and agricultural goods to narrow the trade deficit. Not only did that insult Xi, China’s all-powerful leader who had sent a personal emissary to Washington for the negotiations, but it crystallized a view in Beijing that Trump won’t quit until he thwarts China’s rise once and for all.
“Donald Trump is a smart negotiator who has accumulated abundant experience in doing business for many years — and also from the show ‘The Apprentice,’” said Wang Huiyao, an adviser to China’s cabinet and founder of the Center for China and Globalization, whose advisory council is stacked with former lawmakers. While “China is open to negotiations,” he said, Trump’s pressure tactics “will only arouse Chinese nationalism, which will be counterproductive.”
The ramifications of that are now rippling through a society that has embraced America’s consumer culture — Big Macs, Bentley cars and Chanel handbags are ubiquitous in Beijing — even as it retains a one-party political system that champions large state enterprises and has little tolerance for dissent.
The trade war is leading to some soul searching in Beijing. Discussions quickly turn to the sustainability of China’s state-centered economy and the leadership of Xi, who can rule the country indefinitely after he led a successful effort earlier this year to repeal presidential term limits.
Xi Criticism
The hushed debate centers over the wisdom of Xi’s goals for rapid growth and his decision to announce China’s ambitions to the world. This was a dramatic shift from former leader Deng Xiaoping’s famous dictum, “Hide your strength, bide your time.’’ Critics of Xi say policies like Made in China 2025 (a plan to dominate industries such as aircraft, new energy vehicles and biotechnology) and the Belt and Road Initiative (a mechanism to finance infrastructure investments around the globe) raised alarm in the West, and prompted the U.S. to target China before it could build critical technologies.
This was seen by how swiftly Trump could bring down ZTE Corp., China’s second-largest telecommunications equipment maker. In April, his administration prohibited the company from buying essential components from American suppliers after it violated laws banning the sale of U.S. technology to Iran. The move prompted ZTE to cease major operating activities until Trump came to the rescue and helped engineer a settlement.
Although ZTE is now back up and running, the episode showed China just how dependent the nation is on the U.S. for high-end know-how. It has also highlighted wider efforts to block Chinese firms from acquiring tech companies by the Committee on Foreign Investment in the United States, which reviews deals on national security grounds. All in all it amounts to “high-tech containment” of China, said Shi Yinhong, a foreign affairs adviser to the State Council and director of Renmin University’s Center on American Studies in Beijing.
The U.S., of course, sees things differently. Officials have repeatedly said they don’t want to prevent China from growing, they just want to stop it from breaking the rules and stealing intellectual property — allegations that officials in Beijing repeatedly deny.
‘Off-The-Books Nonsense’
The Pentagon recently named China and Russia as two U.S. rivals actively seeking to “co-opt or replace the free and open order that has enabled global security and prosperity since World War II.” Last month, U.S. Secretary of State Michael Pompeo obliquely criticized China for wooing developing countries with cheap financing for infrastructure projects, saying the U.S. believes in “strategic partnerships, not strategic dependency.”
“With American companies, citizens around the world know that what you see is what you get: honest contracts, honest terms and no need for off-the-books nonsense,” Pompeo said in a speech before he attended a regional security forum in Singapore. Another advantage of the U.S., he said, is that “we will help them keep their people free from coercion or great power domination.”
Across the political spectrum in China, from reformers to nationalists, there’s a growing consensus that the nation needs to open up more to foreign business, better protect intellectual property and create a more level playing field. The confrontation with the U.S. was “due in large part to China doing nothing for many years” to reduce the surplus, widen market access and ease state control, according to Shi from Renmin University. “China faces a new, uncertain situation and needs to undergo review and adjustment,” he said. “We didn’t consider other nations’ feelings in our strategic great leap forward.”
Yet sentiments like these are tempered by a reluctance to be seen as bending to Trump’s demands. Several people said that at first they viewed the U.S. tariffs as not all bad if they prompted the government to make long overdue adjustments in China’s approach to doing business with the West. But as the trade war, and the war of words, has escalated, many of these same people are now digging in against the U.S., saying China won’t be bullied.
Apart from some criticism from academics and grumbling from unnamed officials, so far there’s little visible sign from China’s opaque government that the trade war has impacted Xi’s ability to control the levers of money and power. If Xi and his ministers are themselves suffering any doubts, it’s not reflected in the official press. The People’s Daily newspaper — the main mouthpiece of the Communist Party — recently confronted critics who say it was a mistake for China to be so public with its global goals.
“Such a heavyweight cannot be hidden by taking a ‘low key’ approach,” the paper said in a commentary last week, “just like an elephant cannot conceal its body behind a small tree.”
Beijing has signaled a willingness to strike a deal that narrows the trade deficit. But policy advisers see little room to budge on some of Trump’s other demands, including an end to subsidies for strategic industries, a stop to forced technology transfer and more competition for state-owned enterprises. Those stipulations — shared widely by both Republicans and Democrats alike — are seen as posing an existential threat to the Communist Party, whose legitimacy to rule hinges on its ability to improve livelihoods.
Trump has tried to portray China as an adversary on the ropes, with a falling stock market, sliding currency and slowing economy. It’s certainly true that the U.S. economy is far stronger than China’s. But in Beijing, there is general confidence that in a test of wills between the two presidents, it’s Xi — who doesn’t have to worry about elections or the wrath of special interest groups — who can endure more pain.
China has also hinted there are ways to turn up the pressure on Trump, if necessary. Tariffs on automobiles, semiconductors and Boeing airplanes aren’t off the table, according to Wei Jianguo, a former vice commerce minister and now vice director of China Center for International Economic Exchanges, a group with a mission to “improve China’s soft power.” While China is dependent on U.S. chips to make high-performance mobile devices and can’t completely cut ties with Boeing, it served as the second-largest market for American-made cars after Canada.
“If you want to hit Trump hard, give him a right hook so he remembers the pain,” Wei said.
The instinct to fight back comes naturally to China. The “Century of Humiliation’’ that followed the Opium Wars in the mid-1800s — in which foreign powers forced China to open its markets and provide access to strategic ports — is etched on the national psyche and used in Communist Party propaganda to spur nationalism. — Bloomberg

ALI plans to raise up to P8 billion from bond issuance

Ayala Land, Inc. plans to raise P8 billion by issuing fixed rate retail bonds with a maturity of five years and to be listed at the bond exchange, the company told the stock exchange on Friday, Aug. 17.
The bonds represent the remaining unissued balance of its P50-billion debt securities program as approved by the Securities and Exchange Commission (SEC) in March 2016, it added.
The company did not say when it plans to issue the bonds or the target listing at the Philippine Dealing and Exchange Corp.
It said the debt issuance was approved by its board of directors on Friday afternoon during their regular meeting.
On Friday, shares in Ayala Land rose 2.66% to close by P1.10 at P42.50 each. — Victor V. Saulon

MMDA suspends Aug. 23 implementation of driver-only ban on EDSA, dry run to continue

By Charmaine A. Tadalan
The Metro Manila Development Authority (MMDA) will put on hold the full implementation of the “driver-only” ban on EDSA on Aug. 23 in light of the Senate resolution calling for its suspension.
Hindi muna natin itutuloy yung HOV (High Occupancy Vehicle) lane implementation on August 23 pero tuloy-tuloy pa rin ‘yung dry run,” MMDA spokesperson Celine B. Pialago told BusinessWorld in a phone interview on Friday. (We won’t be pushing through with the HOV lane implementation on August 23, but the dry run will continue)
The MMDA on Wednesday, Aug. 15, started the week-long dry run of its new HOV lane policy, which prohibits private and public vehicles, except motorcycles, to traverse EDSA with just the driver on-board during rush hour from Monday to Friday.
Ms. Pialago explained the decision was made to discuss with the Metro Manila Council (MMC), MMDA’s policy-making authority, the resolution signed by the Senate leaders.
The MMDA and MMC is expected to convene “anytime next week or two weeks from now” to tackle whether to push through with the HOV scheme or not.
In response, Senator Grace S. Poe-Llamanzares, chair of the Senate committee on public services, welcomed the suspension of the traffic scheme.
“Time to go back to the drawing board to think hard what can be done to solve our traffic woes. Policies should always be practical, implementable and in line with public interest,” Ms. Poe-Llamanzares said in a statement, Friday.
“Probably, we don’t need new policies, just strict implementation of existing laws and regulations. Mag public consultation muna kayo (let’s have a public consultation first),” she also said.

Eastern Communications launches latest connectivity products

Eastern Communications launched its latest products on Thursday, Aug. 16, which included connectivity services designed for businesses.
“What we do is know the plans of our subscribers, what they need and we introduce something new. We introduce services that will help them in terms of efficiency (and) in terms of growth or anything that will help them grow their business,” said the telco’s Sales Division Head Michael S. Castaneda during the launch, which coincided with the company’s celebration of its 140th year.
The company’s latest offerings include Ethernet International Private Line (EIPL) and Global MPLS (Multi-Protocol label switching) for fast global data services. These offerings will bring faster point-to-point and point-to-multipoint services that will transmit two-way traffic simultaneously locally and around the globe. Eastern Communications also provides scalable high bandwidth speeds that start at 1 Mbps and above through its partnerships with global carriers.
“These services are well suited for businesses in industries with overseas branches and offices such as banking and finance, manufacturing, transport, and distribution, ICT(Information and Communications Technology) and business process outsourcing(BPO) companies,” Eastern Communications said.
The company also unveiled products designed to address DDOS (Distributed Denial of Service Attacks). It said its DDOS Protection services are effective especially against Volumetric, Application Layer, and Protocol attacks which cause service and transaction disruption.
Eastern Communications also introduced a managed SD-WAN for more bandwidth availability which allows businesses to “dynamically route traffic across a hybrid WAN.” The Hybrid WAN provides better routing of bandwidth and optimized network transport, which is perfect for enterprises with multi-site and multi-branch businesses.
Others benefits of managed SD-WAN Eastern Communications stressed are “improved network visibility and control, security, and better network planning and operations as companies can control the entire network through a single interface and enforce policies with ease based on business requirements.”
Eastern Communications offers cloud services such as Microsoft Azure Virtual Machines(Azure) and Office 365 that will benefit IT professionals which they can use to “build, deploy, and manage applications through Microsoft’s global network of datacenters.” These new offerings could cut costs for companies as Azure this could provide computing resources on demand, which could forego the need of constructing an on-site data center or as Mr Paglinawan described “Infrastructure as a service.” — G.M. Cortez
 
 

LGUs edge each other out in index

LOCAL governments are encouraged to change their mindset by “becoming customer-focused” from being “regulatory-focused” in order to improve delivery of services to constituents.

By Janina C. Lim, Reporter
METRO MANILA cities led by the likes of Quezon City and the City of Manila have continued to dominate an annual list of local government units (LGU) gauged on competitiveness, though the picture is mixed when localities are ranked in each of the development pillars of economic dynamism, government efficiency, infrastructure and resilience, according to the Cities and Municipalities Competitiveness Index 2018 released on Thursday.
This year’s index, which assesses over 1,500 local governments, was released during the 6th Regional Competitiveness Summit held at the Philippine International Convention Center (PICC) in Pasay City.
The rankings generally jibe with regions’ contributions to gross domestic product (GDP), which the Philippine Statistics Authority pegged at 36.6% for Metro Manila, 16.8% for the Cavite-Laguna-Batangas-Rizal-Quezon (Calabarzon) region south of the nation’s capital and Central Luzon’s 9.5% in 2016.
Central Visayas and Davao Region accounted for the fourth- and fifth-biggest contributions to national output that year at 6.5% and 4.1%, respectively.
CITIES
The city list showed Metro Manila localities accounting for half of the top 10 — Quezon City (first), Manila (second), Pasay (third), Makati (fifth) and Pasig (sixth) — while Davao City (fourth), Cagayan de Oro (seventh), Cebu (eighth), Bacolod (ninth) and Naga (10) rounded up the list.
Cities and municipalities competitiveness index
Bacolod (22nd in 2017) and Naga (14th last year) broke into the top 10 this year, displacing Parañaque (now 21st) and Antipolo (25th).
The Metro Manila cities of Muntinlupa, Taguig and San Juan ranked 14th, 18th and 39th this year.
In terms of “economic dynamism” — involving an environment that encourages “stable” business expansion and higher employment — the top 10 consisted of, in descending order: Quezon City as well as Pasay, Davao, Makati, Manila, Mandaue (15th overall) Pasig, Cebu, Bacolod and Taguig cities.
In terms of “government efficiency” — which refers to quality and reliability of government services and government support for sustainable productive expansion — the list consisted of Tagum City (12th overall) in Davao del Norte as topnotcher, as well as Pasay, Iloilo (13th), San Juan (Metro Manila), Makati, Manila, Quezon City, Dumaguete (44th) in Negros Oriental, Kidapawan (32nd) in Cotabato and Muntinlupa cities.
Manila topped the “infrastructure” list, followed by Quezon City as well as Davao, Pasig, Bacolod, Cagayan de Oro, Cebu, Pasay, Makati and Parañaque.
The roster for “resiliency” — which refers to localities’ capacity to facilitate job generation, productivity gains and increase incomes — was topped by Tanauan (19th overall) in Batangas, followed by Calapan (20th) in Oriental Mindoro, Davao, Cebu, Makati, Cagayan de Oro, Pasay, Iriga (11th) in Camarines Sur, Muntinlupa and Naga.
MUNICIPALITIES AND PROVINCES
Cainta (Rizal) topped the list of municipalities, followed by Taytay (Rizal), Pura (Tarlac), Carmona (Cavite), Malay (Aklan), Binangonan (Rizal), San Jose (Antique) and Cabiao (Nueva Ecija).
Metro Manila’s municipality of Pateros placed 826th.
The top 10 provinces were dominated by those in Calabarzon and the South Cotabato-Cotabato-Sultan Kudarat-Sarangani-General Santos City regions (Soccsksargen in central Mindanao which contributed 2.6% to 2016 GDP), in descending order: Rizal, Laguna, Davao del Norte, Cavite, Sarangani, Cotabato, Sultan Kudarat, South Cotabato, Batangas and Bataan.
The three most improved localities were identified as:
• Iloilo, Mandaue and Bacolod among highly urbanized cities;
• Mabalacat (Pampanga), Cadiz (Negros Occidental) and Talisay (Cebu) among component cities;
• San Jose (Antique), Kalibo (Aklan) and Sibalom (Antique) among first- and second-class municipalities;
• Malinao (Aklan), Zaragoza (Nueva Ecija) and Dao (Capiz) among thrid- to sixth-class municipalities;
• as well as Rizal, Laguna and Davao del Norte among provinces.
IMPERATIVE
In his speech at the summit, Trade and Industry Secretary Ramon M. Lopez highlighted the need for local leaders to change mindsets.
“I challenge all our local chief executives to reinvent the ways of delivering government service,” Mr. Lopez said.
“We need to shift our mindset, from being regulatory-focused to becoming customer-focused.”
That, he said, means leveraging on automation in order to ensure “efficient, fast government service” that “can be accessed electronically anytime, anywhere…”
The national government itself has adopted this thrust partly through its “Project One: One Form, One Number, One Portal” initiative that will enable business registration “anytime, anywhere” including via mobile gadgets.
The portal, Trade Undersecretary Nora K. Terrado, head of the Trade and Investments Promotion Group, said in a press conference in PICC, now has relevant information from 92% of local governments.
“It is a software that is ubiquitous and available anytime, anywhere on your phone,” Ms. Terrado said.
“Hopefully, by next year it will be complete.”

July marked by ‘hot money’ net inflows — central bank

MORE FOREIGN FUNDS entered the Philippines in July compared to the preceding month, although the latest flows were a third smaller than a year ago, latest central bank data showed.
Flighty foreign investments posted a $53.29-million net inflow last month, reversing from the $516.12-million net outflow posted in June though just a fourth of the $206.47 million in July 2017.
The latest tally also ended two straight months of foreign fund outflows, according to the Bangko Sentral ng Pilipinas (BSP).
These registered foreign portfolio investments are often called “hot money,” as these funds enter and leave the country with ease.
Foreign investors put in $959.44 million in July, 5.3% more than the $910.78 million in June but down by a third from the $1.434 billion a year ago.
These inflows were partly offset by $906.15 million that were taken out, marking the smallest outflows since January 2017.
“This may be attributed to investors’ anticipation of good… corporate earnings results,” the BSP said in a statement to explain the month-on-month improvement in hot money flows.
Bulk of July investments went to shares listed on the Philippine Stock Exchange, particularly banks; property companies; holding firms, food, beverage and tobacco firms, as well as small and medium enterprises, the central bank said.
These investments yielded $51 million in net inflows.
On the other hand, placements in peso-denominated debt papers yielded $11 million in net inflows, while flows involving peso-denominated government securities resulted in $9-million net outflows.
The United States, United Kingdom, Hong Kong, Singapore and Luxembourg where the top sources of investments, accounting for 84.8% of the total.
About 78.7% of outbound funds went to the US, considered a safe haven amid current global uncertainties.
July inflows brought seven-month hot money to a $455.75-million net inflow, reversing from the $204.24-million net outflows a year ago.
The BSP expects hot money to show a $900-million net outflow by yearend, which would be bigger than 2017’s $205.03-billion net outflow. — Melissa Luz T. Lopez

Duterte to meet economic managers on possible budget 'compromise'

STATE economic managers will meet with President Rodrigo R. Duterte on Friday to discuss a “compromise” between the Executive’s original P3.757-trillion cash-based budget and a “hybrid” system that will include funds that can be disbursed for more than a year.
Mr. Duterte’s meeting on Tuesday evening with Speaker Gloria M. Arroyo and House Majority Leader Rolando G. Andaya, Jr. resulted in the House of Representatives — which had initially suspended budget deliberations in protest against the smaller national budget amid an election year — now poised to resume this work amid Congress’ Aug. 17-27 break.
But Budget Secretary Benjamin E. Diokno told reporters in a mobile phone message that he has yet to hear of the new proposal.
Hindi ko alam kung anong (I do not know what is a) hybrid (budget),” he said.
Bukas magmi-meet kami ni (Finance) Secretary (Carlos G.) Dominguez (III) — kaming tatlo,” he added, saying that Mr. Duterte will be part of the meeting, when asked when the Executive will discuss the proposal.
While Presidential Spokesperson Herminio L. Roque, Jr. said in a media briefing in Malacañang last Wednesday that Mr. Duterte will ask Messrs. Diokno and Dominguez “kung pupuwedeng magkaroon ng (if we can have a) compromise,” he said “the Executive is firm on the cash-based budget,” involving projects programmed that will be procured paid within one fiscal year, as opposed to the current “obligation-based” system that allows a two-year time frame.
Department of Budget and Management (DBM) Director Rolando U. Toledo told reporters on the sidelines of a Senate hearing yesterday that although the House “has to define what that hybrid is,” the DBM is “still preparing for the reenacted (2018) budget, or the ‘option B’.”
Mr. Toledo, however, maintained that the House cannot return the proposed 2019 budget to the Executive branch.
“They could always just approve or reallocate, but… hindi nila pwede isauli sa amin (Congress cannot return it to the Executive). That’s in the constitution,” he said.
Budget Undersecretary Laura B. Pascua said in a mobile phone message that “it will be difficult to function under two budgeting systems,” when asked of Mr. Andaya’s proposed “hybrid” system.
“One of the objectives we were aiming for under the ACBA (annual cash-based appropriations) was to drastically simplify the accounting of funds so that the status of programs and projects would be more transparent,” she said.
Mr. Andaya, who served as Budget secretary under Ms. Arroyo within her 2001-2010 presidency, has argued that the budget which Malacañang submitted to Congress last month was not purely cash-based, citing lump-sum allocations like calamity funds that can be disbursed only as needed and which need not be used up within a year. — Elijah Joseph C. Tubayan

A visit to Northern Ireland: No more Troubles, but a lot of Game of Thrones


Text and photos by Cathy Rose A. Garcia, Associate Editor
NORTHERN Ireland may not be on most people’s itineraries when visiting the United Kingdom, but it should be.
Belfast is no longer a dangerous war zone as the dark days of the Troubles have been long over. (The Troubles is how they refer to the violent 30-year conflict between the Protestant-majority unionists who want Northern Ireland to remain part of the UK, and the Catholic-Republicans who want to join the Republic of Ireland.)
The capital of Northern Ireland is now a booming city, with lively pubs, a stunning museum dedicated to the Titanic, Instagram-worthy street art, and bragging rights as the main production hub for Game of Thrones.
Belfast makes for a great side trip from London, which is only about an hour and a half away by plane. Most fares on budget airlines are reasonable (I managed to get a one-way ticket to the George Best Belfast City Airport from London City Airport for £35 or around P2,400).
Tourism to Northern Ireland is steadily growing. Data from the Northern Ireland Statistics and Research Agency (NISRA) showed 2.7 million overnight trips from external visitors in 2017, a 3% increase from the previous year.
According to NISRA, the top attractions in Northern Ireland (excluding parks, forests, and gardens) based on ticket sales in 2017 included the Giant’s Causeway, Titanic Belfast, the Ulster Museum, and Carrick-a-Rede.
A natural rock formation, Giant’s Causeway is Northern Ireland’s only World Heritage site. Carrick-a-Rede features a rope bridge, suspended 80 feet above the rocks, connecting a tiny island to the Irish mainland.
Titanic Belfast is located on the site of the former Harland & Wolff shipyard, where the ill-fated ship was built. Opened in 2012, the £101 million museum has been nicknamed “The Iceberg” for its facade featuring silver aluminum shards.
At the Titanic Quarter, visitors can also drop by the old headquarters of Harland & Wolff and go on board the SS Nomadic, which is the last surviving White Star Line ship.
From afar, one can also spot the distinctive yellow gantry cranes of Harland and Wolff dubbed “Samson” and “Goliath.”

WINTERFELL
If you’re a Game of Thrones fan, you should definitely visit Northern Ireland. The HBO series has had many scenes filmed at The Paint Hall, tucked away in the Titanic Quarter, in Belfast.
But more importantly, the lush forests, dramatic coastlines, and craggy mountains of Northern Ireland served as a backdrop for many Game of Thrones episodes. Over 25 filming locations, such as Winterfell and Iron Islands, can be found throughout the country.
Northern Ireland now promotes itself as Game of Thrones territory, and several companies offer coach tours of several filming locations.
A fan of the Starks, I picked the “Winterfell Locations Trek” day tour. It involved two three-kilometer walks, one in the morning, and another in the afternoon, but it wasn’t as daunting as it sounds perhaps because the weather was uncharacteristically sunny for most of the day.
Our tour guide, Andrew, has appeared as an extra on the show since season 4, and entertained us with behind-the-scenes stories. Even if we tried to get some spoilers for the final season, Andrew kept his lips shut.
We visited Castle Ward Estate, which overlooks Strangford Lough in County Down. There are nine Game of Thrones locations on the estate, including the castle and stable yard which served as Winterfell for most of Season 1. The 15th century Tower House was also the site of Robb Stark’s camp in the Riverlands.
With such picturesque scenery, a trek through the lush green forest and hills of Castle Ward is enjoyable even if you’re not a Game of Thrones fan.
After the trek, we had lunch at The Cuan, one of 10 restaurants and pubs throughout Northern Ireland that have Game of Thrones-inspired wooden doors. The wood came from 18th century beech trees at the famous Dark Hedges, which was used as the backdrop for the Kingsroad. The trees were felled during a storm in January 2016.
The Cuan’s wooden door is carved with the geography of Westeros, referencing the Game of Thrones opening sequence. Other doors are located in restaurants in Portaferry, Newcastle, and Londonderry, all near Game of Thrones filming spots.
As part of the tour, we met two of the most adorable extras on Game of Thrones — Odin and Thor. The Northern Inuit dogs played the direwolves Summer and Grey Wind on the show.
In the afternoon, we walked through Tollymore Forest Park at the foothills of Mourne Mountains. The forest was the setting for key scenes on the show such as the opening scene in the Game of Thrones pilot where Night’s Watch members discover Wilding bodies before encountering White Walkers, as well as the spot where Tyrion and Jon Snow built a campfire before heading to the Wall.
While the tour focused on Winterfell, there are other Game of Thrones tours featuring stops at the Iron Islands, Cushendun Caves (where Melisandre gave birth to a shadow creature in Season 2), Dark Hedges, as well as tourist attractions Rope Bridge and the Giant’s Causeway.
In Belfast, a Game of Thrones tapestry is on public display at the Ulster Museum. It is made of Irish linen from one of the last surviving linen mills in the country — Thomas Ferguson Irish Linen in Banbridge, County Down.
The 80-meter long, medieval-style wall hanging depicts key events and characters throughout Game of Thrones’ seven seasons.
BELFAST
Even if you haven’t watched an episode of Game of Thrones, Belfast is certainly worth a visit. The city itself is very “Instagrammable,” with historic buildings and unique street art almost everywhere.
One of the most photographed buildings is City Hall, and for good reason. With its classical Renaissance design, the building is stunning from any angle.
The Albert Clock, which was built in 1865, is Belfast’s version of the Leaning Tower of Pisa. The memorial to Prince Albert, husband of Queen Victoria, was constructed on wooden piles on marshy, reclaimed land around the river — the reason for its tilt.
Queen’s University also boasts of the iconic Lanyon Building, which is featured on banknotes and tourism posters.
Belfast is also known for its street art, with tributes to Game of Thrones and the late actress Carrie Fisher found around the city.
Murals also decorate the so-called “peace walls” that separate the Republican and Nationalist Catholic neighborhoods from the Loyalist and Unionist Protestant communities. These walls were erected during the Troubles to protect residents from sectarian attacks.
Twenty years since the Good Friday agreement was signed in 1998, violence may have stopped but the walls remain. The most famous peace walls are along the nationalist Falls Road, and the unionist Shankill Road in the western area of Belfast.
While it may be tempting to use these peace walls as the backdrop for your OOTD, it’s best to be sensitive to the political history behind the murals. Some murals pay tribute to victims of the Troubles, while most have strong political themes.
PUB LIFE
Belfast also has a lively pub culture. The Crown Liquor Saloon, which dates back to 1826, is widely considered the city’s most famous pub. Visually, the Victorian gin palace dazzles with its architecture — brocaded walls, wood carvings, elaborate mirrors, colorful painted windows, and painted mosaic floor tiles. It also has cozy “drinking snugs” or wooden boxes where diners can have some privacy when eating or drinking.
The Crown is also where Prince Harry and his then-fiancée Meghan Markle had lunch when they visited Belfast in March.
When I had lunch at The Crown, I sampled the Irish lamb stew with a rich, flavorful sauce that reminded me of caldereta. Later when I was paying for my meal, the server said she served the royals during their visit and that Ms. Markle had the same dish and apparently “loved it.”
Before leaving Belfast, make sure to order an Ulster fry for breakfast. Consisting of sausages, bacon, soda bread, potatoes, egg, beans, tomato, and black pudding, this meal will leave you with warm memories of the city and wishing you can go back for more.

Dennis Uy buys stake in ISM for P1.28B

Dennis Uy
DENNIS A. UY

DAVAO-BASED businessman Dennis A. Uy continues his acquisition spree with the purchase of P1.28 billion worth of shares in listed firm ISM Communications Corp.
In a disclosure to the stock exchange on Thursday, ISM said its executive committee has approved the subscription of Mr. Uy’s Dennison Holdings Corp. to 883.73 million unissued common shares of the company at P1.45 per share.
The subscription is equivalent to 45.13% of the company’s outstanding total stock.
ISM said 25% of the transaction value will be paid upon subscription, while the remaining 75% will be paid by the end of the year.
Incorporated in 1925 originally as a mining company carrying the name Itogon-Suyoc Mines, Inc., ISM transformed itself into a company engaged in information technology, multimedia communications, and other similar industries in the early 2000s.
The company then secured approval from the Securities and Exchange Commission to change its primary purpose to that of a holding firm in 2016.
ISM has a 32% stake in German firm Acentic GmbH, which provides internet connectivity and inter-room entertainment solutions for the hospitality industry. It also owns 37.1% of the Philippine Bank of Communications.
The company reported attributable losses worth P17.2 million in the second quarter of 2018, amid gross revenues of P60,000. Year-to-date, its net loss attributable to the parent stood at P12.2 million, on the back of P120,000 in revenues.
ISM’s market capitalization stood at P2.99 billion at the end of Thursday’s trading. Shares in the company jumped 14.75% or 41 centavos to close at P3.19 each at the stock exchange on Thursday.
A known friend of President Rodrigo R. Duterte, Mr. Uy has been aggressively expanding his business since the start of the president’s term in 2016. His holding firm Udenna Corp. has a diverse range of companies under its control, including Phoenix Petroleum Holdings, Inc., Chelsea Logistics Holding Corp., Udenna Development Corp. (UDEVCO), and Udenna Management and Resources Corp.
Last year, Mr. Uy added an education segment to his business through the acquisition of Enderun Colleges located in Taguig.
He also purchased the local operator of Family Mart convenience stores last October through Phoenix Petroleum.
The businessman further bought a 62.006% share in Philippine H2O Ventures Corp. last year through UDEVCO. The transaction was seen as a potential backdoor listing move for Mr. Uy’s property firm.
Mr. Uy earlier said that his group plans to list Lapu-Lapu Land Corp., Udenna’s leisure arm which is currently developing a $341-million integrated resort and casino in Cebu. — Arra B. Francia

SEC approves guidelines on ASEAN Green Bonds

THE Securities and Exchange Commission (SEC) has approved the guidelines for the issuance of ASEAN (Association of Southeast Asian Nations) Green Bonds in the country, which will be used to specifically fund green and sustainable projects.
ASEAN Green Bonds are defined by the ASEAN Capital Markets Forum (ACMF) as bonds and sukuk (Islamic bonds) that comply with the ASEAN Green Bond Principles. These principles pertain to voluntary process guidelines issued by the International Capital Market Association.
The approved guidelines aim to raise awareness as well as improve appetite for green financing in the country.
“Compliance with the ASEAN GBS (Green Bond Standards) enable local issuers to tap into the global green bond market which has been experiencing rapid growth over the recent years,” the SEC said in an e-mailed statement to reporters.
Under the approved guidelines, eligible issuers are companies incorporated in any of the ASEAN member countries. Non-ASEAN countries may also use this fundraising method as long as the green projects are located in the ASEAN region.
Section 8 of the guidelines state that the following projects may be financed through green bonds:
• renewable energy;
• energy efficiency;
• pollution prevention and control;
• environmentally sustainable management of living natural resources and land use;
• terrestrial and aquatic biodiversity conservation;
• clean transportation;
• sustainable water and waste water management;
• climate change adaptation;
• eco-efficient and/or circular economy adapted, production technologies and processes; and, green buildings which meet regional, national or internationally recognized standards or certifications.
The approved green projects must also provide clear environmental benefits, which should be assessed and quantified by the issuer. To note, fossil fuel power generation projects are not covered by the ASEAN GBS.
Under Sections 11 and 12 of the guidelines, the issuer must disclose where it has allocated the funds raised for the green project. Should portions of the issuance be used for refinancing, the company must provide an estimate of how much the funds went to refinancing and for what investment or project portfolio they were made.
The net proceeds should also be continuously reported to investors, including how much has already been spent and their impact. Quantitative measures for a project’s impact include energy capacity, electricity generation, the greenhouse gas emissions reduced or avoided, the number of people provided with access to clean power, the decrease in water use, and reduction in the number of cars required, among others.
To ensure proper reporting of the use of proceeds, issuers must provide investors with annual reports and the external review on those reports.
The approved guidelines will supplement requirements under Sections 8 and 12 of the Securities Regulation Code, which details rules on the issuance of securities. — Arra B. Francia

ADVERTISEMENT
ADVERTISEMENT