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Peso at two-month high on rate hike bets

THE PESO strengthened against the dollar on Monday to hit a two-month high as market players anticipate a rate hike at the central bank’s meeting this week.
The local unit ended Monday’s trading at P52.85 against the greenback, 30 centavos stronger than the P53.15-per-dollar finish on Friday.
This was the peso’s strongest closing rate in nearly two months since it closed at P52.70 versus the US currency on June 8.
The peso traded stronger the whole day, opening the session at P53.10 against the dollar. It climbed to as high as P52.84, while its intraday low stood at P53.135 versus the greenback.
Dollars traded amounted to $892.9 million, up from the $595.15 million that exchanged hands in the previous session.
“The peso strengthened ahead of the key local economic data this week,” a trader said in an e-mail on Monday.
Economists are expecting the Bangko Sentral ng Pilipinas (BSP) to tighten monetary policy rates anew as inflation might have spiked further in July.
According to a BusinessWorld poll, analysts expect headline inflation to have picked up further last month to 5.5% from the 5.2% print in June.
BSP Governor Nestor A. Espenilla, Jr. has hinted of a “strong follow-though” policy action after two 25-basis-point increases the central bank implemented in May and June to quell inflation expectations.
The monetary policy decision of the BSP’s Monetary Board as well as the release of data on the country’s second-quarter gross domestic product growth will be announced on Thursday, while the July inflation report is due for release Tuesday, August 7.
The trader also attributed the peso’s climb to the “mixed” US jobs data released on Friday.
The US created 157,000 additional jobs in July, the slowest gain since March. However, the unemployment rate declined by a tenth of a percentage point to 3.9%.
Another trader added that the peso was an “outperformer” in the region as market players factored in a possible BSP rate increase.
“The People’s Bank of China on Friday night announced that they will increase by 20% the reserve requirement on foreign exchange forward contracts. Effectively, this will make it more expensive for market players to short the Chinese yuan,” the trader added. “With that, the region moved in tandem with the Chinese yuan to weaken.”
For Tuesday, the first trader expects the peso to move between P52.70 and P52.90 versus the dollar, while the other gave a P52.75-P53 range. — Karl Angelo N. Vidal

PSEi ends flat as investors await economic reports

LOCAL EQUITIES ended flat on Monday as investors took a wait-and-see approach pending the release of several key economic reports this week.
The bellwether Philippine Stock Exchange index (PSEi) edged down 0.02% or 2.08 points to close at 7,817.31 Monday, August 6.
The broader all-shares index also dropped 0.16% or 7.85 points to end at 4,660.44.
“Philippine shares traded with some precaution as this week marks the release of key economic data points,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message on Monday.
The government is set to release July inflation data Tuesday, August 7. On Thursday, it will release the country’s second-quarter gross domestic product (GDP) report ahead of a Bangko Sentral ng Pilipinas meeting in the afternoon.
Although traders have been factoring a 50-basis-point interest hike from the central bank as it reviews policy this week, Miko A. Sayo, trader at AP Securities, Inc., said the economic reports will help determine the market by the end of the week.
“I’m not sure how the market will react…but we expect inflation will be high again,” Mr. Sayo said in a phone interview Monday, August 6.
He added that the index has been recovering in recent weeks and has managed to hover in the high side in short-term trading.
“Momentum has slowly returned and whether it will continue may be decided by the end of the week,” Regina Capital’s Mr. Limlingan said.
Counters were mixed on Monday. Holding firms dropped 0.77% or 60.41 points to 7,789.55 and services declined 0.13% or 2.06 points to 1,502.80.
Meanwhile, property climbed 0.88% or 33.34 points to 3,802.55; mining and oil rose 0.36% or 37.55 points to 10,335.60; industrials went up 0.35% or 39.17 points to 10,958.30; and financials rose 0.33% or 6.39 points to 1,891.40.
Foreigners dumped shares anew, with net selling logged at P86.96 million, a reversal from Friday’s net purchases worth P6.65 million.
Value turnover dropped slightly to P5.60 billion from Friday’s P5.72 billion after some 2.07 billion issues changed hands.
Losers outpaced advancers, 117 to 92, while 36 issues remained unchanged.
Meanwhile, other Southeast Asian markets traded higher in line with broader Asian peers Monday, August 6, with Indonesia camping near a two-month peak boosted by robust GDP figures.
Asia shares ex-Japan rose 0.9% in early trade after the People’s Bank of China (PBoC) on Friday raised the reserve requirement on foreign exchange forward positions, making it more expensive to bet against the Chinese currency.
Although the PBoC had implemented a 20% reserve in 2015, it had failed to stop the RMB from weakening further. “It is a strong signal. China will not hesitate to intervene in the market should the currency depreciation risk the financial stability,” OCBC Bank said. — J.C. Lim with Reuters

Duterte signs National ID, Bangsamoro Region laws

By Arjay L. Balinbin, Reporter
PRESIDENT Rodrigo R. Duterte led the ceremonial signing of the Philippine Identification System Act and the presentation of the organic law for the Bangsamoro Autonomous Region in Muslim Mindanao at Malacañang on Monday, Aug. 6.
The ceremony was attended by the Cabinet members; members of the Senate and the House of Representatives, including Senate President Vicente C. Sotto III and House Speaker Gloria M. Arroyo; Office of the Presidential Adviser on the Peace Process (OPAPP) officials; members of the diplomatic corps; Philippine Statistics Authority (PSA) officials; and members of the Bangsamoro Transition Commission (BTC), including Mohagher Q. Iqbal and Ghazali Jaafar who are also high-ranking leaders of the Moro Islamic Liberation Front (MILF).
In his speech, Mr. Duterte said the Philippine Identification System (PhilSys) Act “will not just enhance administrative governance but reduce corruption, curtail bureaucratic red tape, and promote the ease of doing business, (and) also avert fraudulent transactions, strengthen financial inclusion, and create a more secure environment for our people.”
The new law aims to eliminate the need to present other forms of identification when transacting with the government and the private sector by providing a single valid proof of identity for all Filipino citizens and foreign residents in the country.
As the implementing agency, PSA said in a statement it will lead the implementation of the national ID system together with National Economic and Development Authority (NEDA), Department of Foreign Affairs (DFA), Department of Budget and Management (DBM), Department of Information and Communications Technology (DICT), Department of Finance (DoF), Department of Social Welfare and Development (DSWD), Department of Interior Local Government (DILG), National Privacy Commission (NPC), Bangko Sentral ng Pilipinas (BSP), Government Service Insurance System (GSIS), Philippine Health Insurance Corporation (PhilHealth), Social Security System (SSS) and Philippine Postal Corporation (PHLPost) forming the PhilSys Policy and Coordination Council (PSPCC).
PSA also said NEDA Secretary and PSPCC Chairman Ernesto M. Pernia will convene the council to discuss plans for PhilSys implementation. As head of the implementing agency PSA, Undersecretary Lisa Grace S. Bersales will act as Co-chair.
In the coming months, PSA said it will conducting a pilot implementation in selected regions in the Philippines in collaboration with the Council’s member-agencies. “The pilot test aims to lay down the registration process prior to the full 5-year implementation starting 2019,” the PSA’s statement also read.
As for the Bangsamoro Organic Law (BOL) or Republic Act No. 11054, Mr. Duterte said he signed it into law hoping this will “finally end the decades-old conflict [in Mindanao] that is rooted in the Bangsamoro’s fight for self-determination and the recognition of their unique identity.”
According to a press briefer on the BOL, the autonomy with transparency and accountability of the Bangsamoro Government is guaranteed by the following features: parliamentary form of government, fiscal autonomy, and inclusivity.
“The Parliamentary form of government allows more democratic participation, ensures greater diversity and representation, and encourages the formation of genuinely principled political parties. The Parliament will be composed of 80 members representing different parties, sectors and districts elected by the people through popular representation which safeguards the monopoly of membership of a certain sector. The Members of the Parliament then choose the Chief Minister, and two Deputy Chief Ministers, nominated by the Chief Minister. The Chief Minister appoints members of his cabinet, majority of whom shall come from the members of Parliament. The Parliament is given the power to enact laws to promote, protect and ensure the general welfare of the Bangsamoro people and other inhabitants in the region. The Parliament has the power to pass an annual appropriations law for the region, clearly defining where the appropriation shall be utilized.”
“The Bangsamoro Organic Law grants the Bangsamoro Government the right to manage their funds, income and resources. The law also states that the National Government will provide an annual block grant automatically appropriated in the General Appropriations Act of the Congress to the Bangsamoro government in order for it to efficiently perform its powers and functions. The block grant which will be released directly to the Bangsamoro Government is equivalent to five percent (5%) of the net collection of the Bureau of Internal Revenue and from the Bureau of Customs. The block grant, though and other national government subsidies given in lump sum may not be spent without an appropriations law defining the purpose for which they are intended.”
“Taxes collected from the region will be split 25% — 75% in favor of the Bangsamoro Government. This sharing arrangement aims for the Bangsamoro Government to catch up with other region in terms of economic developments as it suffered years of accumulated neglect due to the armed-conflict and under investments both from the government and the private sector.”
“The Bangsamoro Organic Law recognizes and respects the rights of every sector and groups in the Bangsamoro area. Ten percent (10%) of the Parliamentary seats are reserved for non-Moro indigenous peoples and settler communities, women, youth, traditional leaders and the Ulama. Further, the Bangsamoro Government adopts measures for the promotion and protection of these rights thru the creation of a Ministry for Indigenous Peoples that will formulate and implement policies, plans, and programs for all IPs (indigenous peoples) in the region, on top of upholding the existing laws for IPs.”

Marcos wants Caguioa inhibited from poll protest, claims bias

FORMER SENATOR Ferdinand R. Marcos, Jr. filed on Monday an “extremely urgent motion to inhibit Supreme Court Associate Justice Alfredo Benjamin S. Caguioa, citing “his wife’s undeniably close ties with former President Benigno “Noynoy” Aquino, Jr. and Ms. (Maria Leonor G.) Leni Robredo.”
Also on Monday, a spokesperson of the Commission on Elections said the poll body stands by the results of the 2016 elections. Mr. Marcos ran for vice-president that year and lost to Ms. Robredo in the official count now subject to his electoral protest before the SC as the Presidential Electoral Tribunal.
According to Mr. Marcos, Mr. Caguioa’s wife, Pier Angela, “was not only an anti-Marcos advocate but was also an ardent supporter of Robredo, having actively campaigned for her during the May 2016 elections.”
He cited “online messages of Caguioa’s wife in her Viber group,” as also posted on Facebook, and quoted one such message by her as saying, “(i)f BBM (Bongbong Marcos) wins and if he wins because of the youth, it’ll be [the] failure of our generation. We were the main catalysts of Edsa 1 and yet we failed to impart its lessons upon the generation that followed us.”
A statement from the former senator’s office also cited Mr. Marcos as pointing out that “while he was aware of Justice Caguioa’s fraternal bond with Noynoy Aquino because they were classmates from grade school, high school and college at the Ateneo De Manila University — a fact which led to Caguioa’s appointment to various top posts during Aquino’s Presidency, he tried to give Caguioa the benefit of the doubt. Despite the inordinate delays in his election protest, he tried to remain above the fray out of respect to the Presidential Electoral Tribunal.”
“Given the evident bias, manifest partiality and blatant prejudice shown by Associate Justice Caguioa and Mrs. Caguioa in favor of Noynoy Aquino and protestee Robredo, the undersigned protestant is left with no other recourse but to file the instant Motion for the Inhibition pursuant to the mandate of Canons 3 and 4 of the New Code of Judicial Conduct for the Philippine Judiciary,” Mr. Marcos said in the statement.
For his part, Comelec spokesperson James B. Jimenez told reporters, “The Comelec is standing by the results of the elections.”
Mr. Jimenez and Comelec Executive Director Jose M. Tolentino, Jr. testified on Monday before a joint congressional oversight committee reassessing the automated election system in light of the 2016 polls.
At the hearing, many representatives of polls watchdog groups and politicians raised irregularities observed in the conduct of the polls. Previous issues, such as the Comelec website hacking back in March 2016 and the discrepancy of data between the main and backup memory cards, were also discussed.
Mr. Tolentino assured that hackers would no longer be able to enter into the agency’s system now that the website is hosted by the Department of Information and Communications Technology (DICT). He also reiterated that the hacking did not affect the results of the elections.
Claims were also made by lawyer Glenn Chong of the Tanggulang Demokrasya regarding the selling of voters’ information by an election officer to candidates in Maragondon, Cavite.
In response, Mr. Jimenez said the photos Mr. Chong showed to support the claims were merely an election officer showing the voter verification system of the agency.
“I think there may have been a misappreciation of what he had. He thought it was something else but it wasn’t. We’ll see what happens. We’ll check the allegation, we took notes and then we’ll find out,” he said.
He also addressed the other glitches that happened during the 2016 national elections, saying “If you go back to the record, you’ll know at every point, it was answered. It’s really a question of what people or what certain people will accept as a valid explanation. But again, if you look at the explanations of Comelec, it doesn’t change. As far as the Comelec is concerned, there is one set of facts and that’s what we’re sticking to,” he said.
For his part, Senator Aquilino Martin L. Pimentel III, who chairs the Senate committee on electoral reforms and people’s participation, said the Comelec still needs a lot of explaining to do, noting the pattern of “surprises” that occurred days before election day in the previous polls.
“There are a lot of occurrences that Comelec still need to explain. Some may be glitches but we still need explanation from Comelec. Why are these happening?” he said. — Gillian M. Cortez and Camille A. Aguinaldo

Martires stands by Palace order on Carandang

OMBUDSMAN SAMUEL R. Martires said on Monday he has “no choice” but to implement Malacañang’s dismissal order against Overall Deputy Ombudsman (ODO) Melchor Arthur H. Carandang.
The newly sworn Ombudsman, however, also said he will have to wait until Mr. Carandang files a motion for reconsideration (MR) on his dismissal.
“I am giving the (Overall) Deputy Ombudsman 15 days to file his motion for reconsideration, until such time the motion for reconsideration has been addressed by the Office of the President shall I implement the decision,” Mr. Martires told lawmakers at the budget hearing for the Office of the Ombudsman, Monday.
When asked whether the Ombudsman will implement the dismissal order should the MR be denied, Mr. Martires said “I am bound by whatever laws are existing at the moment until such time that these laws are modified, amended, or repealed, I have to implement the law.”
He also said the decision is “immediately executory,” in accordance with the provisions of the administrative case.
Mr. Martires also said the courts will have to decide whether the President has power to dismiss the deputy ombudsman.
“This is a matter that is left to the courts to decide, I don’t want to comment on that at the moment,” he said.
Regarding the July 30 decision ordering Mr. Carandang’s dismissal, Presidential Spokesperson Harry L. Roque, Jr. last week said the Office of the President implements decisions concerning presidential appointees, but added it will leave Mr. Carandang’s dismissal up to the new Ombudsman. — Charmaine A. Tadalan

Senator seeks clarification on PCOO budget amid controversy over Uson video

SENATORS, members of the Consultative Committee, and even officials of the executive branch criticized on Monday a video pitch on federalism by Communications Assistant Secretary Esther Margaux J. Uson that made rounds in social media over the weekend.
In a statement, Senator Grace S. Poe-Llamanzares said the Presidential Communications Operations Office (PCOO) must justify its budget increase in the 2019 proposed national budget following the incident. This while several agencies face deep cuts in their appropriations amid the soaring food prices and hunger incidence, she pointed out.
“The PCOO must justify its budget increase. What are the deliverables? Are memes and blogs also hit by inflationary spikes? Is the cost of feeding the nation with government information adversely affected by TRAIN (Tax Reform Acceleration and Inclusion), too? Will the PCOO be hiring campaigners to explain federalism,” she said.
“The obliterated amount from some agencies will hit hard the people, who badly need social services. What will sustain them are education, affordable food, health services and social assistance, not gaffes and reckless communication campaigns,” she added.
The PCOO asked for a P1.41 billion budget in 2019, higher than its 2018 budget of P1.38 billion.
Meanwhile, Senate President Pro Tempore Ralph G. Recto said in a text message to reporters, “She’s the perfect endorser for federalism. She symbolizes those in favor of federalism.”
Senator Aquilino Martin L. Pimentel III, a federalism advocate, told reporters that while the concept was difficult to understand, it should not be connected with private body parts. He also urged Ms. Uson not to involve herself with the information campaign any longer.
“The President said he had hired the best and the brightest people so I’m sure we can get another face that will help with the federalism advocacy,” he said.
For his part, Senior Technical and Media Officer Conrado I. Generoso of the Consultative Committee (Con-Com) to Review the 1987 Constitution said in part in his statement, “As Assistant Secretary Uson has stated before, she is not a designated spokesperson for federalism. There has never been any idea to make her a spokesperson.”
“It is certainly not the way to present federalism. It is not a part of the information campaign which is still being crafted, and the mechanics of which are still being finalized,” Mr. Generoso also said regarding Ms. Uson’s video.
“It would mean talking about how federalism can help create jobs and livelihood opportunities, how government services such as health and education could be made closer to the people—and it would talk about the lives of ordinary folks in the provinces,” he added.
Meanwhile at the House of Representatives, the chairperson of the committee on constitutional amendments said his panel will adopt the Con-Com’s draft federal constitution as its “working draft.”
“We will be consolidating the two drafts, but we are using the Puno draft as the working draft,” committee chair and Leyte Representative Vicente S.E. Veloso told reporters in a phone interview Monday.
He also said two months would be sufficient time to assess if the proposed federal constitution would be acceptable to both chambers of Congress.
“Two months will be enough for us to see kung talagang (if the draft charter is really) acceptable ito sa (for) both houses,” Mr. Veloso said.
But for his part, House Majority Leader Rolando G. Andaya Jr. said “it depends kung anong proposal ng (which proposal of the) Consultative Committee, but I don’t think mangyayari ‘yun (but I don’t think that will happen).”
The panel is scheduled to hold on Tuesday its initial deliberation on the congressional and ConCom draft federal charters.
The Concurrent Resolution convening Congress into a constituent assembly, previously filed in the chamber, will also be tackled for withdrawal by the Committee on Rules to make way for the filing of a new resolution, accommodating the Senate’s push for separate voting.
For his part, Presidential Spokesperson Harry L. Roque, Jr. said on Monday, “The roadshow for federalism will be commenced this month of August, kasama po iyong mga materyales na ginawa po ng (and it will include the materials being prepared by the) DILG (Department of the Interior and Local Government) in coordination with academics, iyong mga miyembro rin ng (and the members of the) Consultative Committee.” — Camille A. Aguinaldo, with Charmaine A. Tadalan and Arjay L. Balinbin

Nationwide round-up

PHL gov’t open to China’s suggested joint activities with ASEAN in disputed sea

ASEAN flags
AFP

MALACAÑANG on Monday said it is open to the suggestion of the People’s Republic of China to conduct joint military exercises and energy exploration with member-states of the Association of Southeast Asian Nations (ASEAN) in the disputed waters of the South China Sea.
China, however, also insisted that non-ASEAN countries, especially the United States, should be excluded from the joint activities.
Sought for comment during a press briefing on Monday, Presidential Spokesperson Harry L. Roque, Jr. said: “We understand the invitation of China [that] it wants a closer cooperation among its neighbors, and the US is not its neighbor and therefore we understand that.”
He added: “We have also said we are amenable to a joint exploration in the disputed areas, and we are pushing for 60%-40% sharing — 60% accruing to Filipinos, of course.” — Arjay L. Balinbin

Roque joins Davao’s HNP regional party

PRESIDENTIAL SPOKESPERSON Harry L. Roque, Jr. on Monday took his oath as a member of the Hugpong ng Pagbabago (HNP), a regional political party led by Davao City Mayor Sara Carpio-Duterte, a daughter of the President.
“Well, I took the oath kanina. Well, I am the Presidential spokesperson, and the President has said Hugpong is his party. So, it‘s only right that I join his party,” Mr. Roque said in a press briefing in Malita, Davao Occidental on Monday, Aug. 6.
He added, “This is without prejudice to alliances that Hugpong may enter into, including with PDP-Laban. So, that’s not really an impossibility because right now the registration of Hugpong is as a regional party. But, of course, as Presidential spokesperson, I need to join the party of the President as well. He is also the chairman of PDP, so I should also be there but first and foremost when I asked him he said Hugpong has always been his party.”
Mr. Roque was mum on whether he has plans of running for Senate next year.
However, Davao Occidental Rep. Lorna P. Bautista-Bandigan, who joined him during the press briefing, addressed him as her district’s “senator.”
“Thank you, Senator Harry Roque, siya ang senador namin dito sa (He is our senator here in) Davao Occidental,” Ms. Bandigan said. — Arjay L. Balinbin

P0.10 rollback on gas and diesel this week

OIL COMPANIES are rolling back the cost of petroleum products this week, although at a rate lower than the price increases in recent weeks. Gasoline and diesel products will both be cheaper by P0.10/L, while kerosene prices will be lower by P0.25/L. Seaoil Philippines, Inc. will be among the first to cut prices at 12:01 a.m. on Tuesday, Aug. 7, while most other companies will be reducing prices at 6:00 a.m. The reduction this week follows last month’s almost weekly price increases, which peaked at P1.15/L for gasoline last Tuesday. Diesel and kerosene per liter prices also rose significantly last week at P0.95 and P0.85, respectively.
JEEPNEY DISCOUNT
Meanwhile, Petron Corp. said it is now accepting the Pantawid Pasada Card distributed by the Transportation and Energy departments in 740 service stations nationwide. It said the stations are marked with a Pantawid Pasada Program signage and are along high-traffic public utility jeepney transport routes. — Victor V. Saulon

Samson Road station

Rehabilitation and maintenance activities are ongoing at the Philippine National Railway (PNR) Samson Road Station Platform for possible reopening. The Department of Transportation and PNR intend to extend the Caloocan-Dela Rosa line up to Samson Road Station in Caloocan City.

SC denies Celdran appeal

CULTURAL ACTIVIST Carlos Celdran’s motion for reconsideration on his case for “offending religious freedom” has been denied by the Supreme Court. His jail sentence has been upheld to a minimum of three months and a maximum of one year and one month. Mr. Celdran was charged by the Metropolitan Trial Court of Manila for “the offense of Offending the Religious Feelings defined and penalized under Article 133 of the RPC.” Article 133 of the Revised Penal Code reads: “The penalty of arresto mayor in its maximum period to prision correccional in its minimum period shall be imposed upon anyone who, in a place devoted to religious worship or during the celebration of any religious ceremony shall perform acts notoriously offensive to the feelings of the faithful.” In 2010, Mr. Celdran interrupted a religious service in Intramuros and shouted that the church should not be involved in politics. Mr. Celdran was dressed as national hero Jose Rizal and holding a sign on which was written the word “Damaso”, referring to the villainous friar in Rizal’s novel Noli Me Tangere. — Gillian M. Cortez

DPWH on track to finish Boracay roads rehab

THE DEPARTMENT of Public Works and Highways (DPWH) said the rehabilitation work being undertaken on roads in Boracay will meet the October deadline, in time for the reopening of the island after a six-month closure. In a statement on Monday, DPWH said significant development has been observed based on last week’s inspection. “We have started the pouring of concrete and installation of pipes along Cagban to Elizalde Compound. As of now, we are almost 40% complete,” DPWH Secretary Mark A. Villar said. He added, “Now 60% completed, the construction of the missing gap, along the circumferential road, will facilitate travel around the famous Puka Beach.” The agency is also looking to construct a “road network” along Bulabog beach, which may serve as alternate route to the island’s main road and a dedicated road for transporting goods to and from the island. — Denise A. Valdez

PDIC to bid out assets in the Visayas on Aug. 30

PDIC logoREAL ESTATE properties located in different parts of the Visayas with a total minimum disposal price of P68 million are up for bidding on Aug. 30 at the Bangko Sentral ng Pilipinas office in Iloilo City. The Philippine Deposit Insurance Corporation (PDIC), in a statement, said the public bidding for the assets from 43 closed banks will be on an “as-is, where is” basis. The properties include 21 residential lots, 19 residential lots with improvement, two commercial lots with improvement, and one mixed-use industrial/residential lot. These are in Bohol, Cebu, Iloilo and Negros Occidental. Sealed bids will be accepted by the PDIC Real and Other Properties Acquired Disposal Committee from direct buyers on Aug. 30, between 9:00 a.m. and 1:45 p.m. Bids will be opened at 2:00 P.M. The detailed list of properties and other information are posted on the PDIC website, www.pdic.gov.ph.

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