Peso regains strength amid US-China trade tensions

June 22, 2018 | 6:13 pm

The peso rebounded on Friday, June 22, as the dollar slid amid continued concerns over the trade spat between the United States and China.
The peso ended Friday’s session at P53.28 against the greenback, 18 centavos stronger than the P53.46-per-dollar finish the previous day.
The peso immediately regained its strength as it opened the session at P53.38 versus the US currency. It rose to as high as P53.23, while its intraday low stood at P53.46 against the dollar.
Dollars traded rose to $921.5 million from the $860.95 million that switched hands on Thursday.
A trader said that the peso corrected on Friday as the dollar slipped against a basket of Asian currencies.
“The peso corrected after a few sessions trading near the P53.50 high. We’re seeing dollar-Asia trading [higher]. That’s one of the reasons why dollar-peso moved along with other currencies in the region,” the trader said in a phone interview.
The trader attributed the “slight weakness” of the greenback to the lingering concerns over the trade dispute between the world’s two largest economies.
Since last week, The US and China have been hurling threats anew about imposing tariffs on each other’s imports, sparking concerns of a looming trade war.
Washington has also threatened its traditional allies Canada, Mexico and the European Union by lifting their temporary reprieve from 25% duty on steel and 10% tariff on aluminum. — Karl Angelo N. Vidal

BPI sets up MTN program to raise up to $2 billion

June 22, 2018 | 6:08 pm

Bank of the Philippine Islands (BPI) has established a dollar-denominated medium-term note (MTN) program to maximize flexibility in raising capital.
The MTN program was successfully established by the Ayala-led bank in an aggregate amount of up to $2 billion or its equivalent in other currencies, BPI said in a regulatory filing Friday, June 22.
Last week, BPI said its board of directors has approved the move on setting up a note facility “to maximize flexibility in accessing funding expediently.”
Banks usually employ a note facility to raise more capital to fund its programs and operation by issuing medium-term notes.
BPI has tapped BPI Capital as sole global coordinator and lead arranger for the program, while Deutsche Bank, HSBC and J.P. Morgan will serve as joint lead arrangers. — Karl Angelo N. Vidal

ISM board approves fundraising through share issuance

June 22, 2018 | 5:53 pm

The board of directors of ISM Communications Corp. has authorized its executive committee to raise funds through the issuance of treasury shares as well as unissued shares from of its authorized capital stock, the company told the stock exchange on Friday.
The approval, which was given during a board meeting on Friday, covers the raising of funds by issuing 841,945,107 treasury shares and 883,730,659 unissued shares at a minimum issue price of P1.45 per share.
The price per share is equivalent to a 20% discount to the 60-day volume weighted average price as of Thursday of ISM, “and on such other terms and conditions as the Executive Committee may find appropriate and proper.”
“The Executive Committee has a period of 90 days from date of this approval to exercise this authority granted by the Board. One of the investors who has committed to participate in the private placement is Mr. Dennis A. Uy, the founder of the Udenna Group of Companies,” ISM said.
“ISM intends to use the proceeds of this issuance to fund the investment opportunities currently being pursued by management,” it added. — Victor V. Saulon

Senators question PDEA's mandatory drug testing of Grade 4 students

June 22, 2018 | 4:33 pm

Senators on Friday questioned the plan of the Philippine Drug Enforcement Agency (PDEA) to conduct mandatory drug testing for teachers and students from Grade 4 and up.
Senate President Vicente C. Sotto III, who also formerly chaired the Dangerous Drugs Board (DDB) said he wanted the drug testing to be raised up to Grade 6.
“I’m convincing them to upgrade the testings to Grade 6,” Mr. Sotto told reporters in a phone message. “Combination random because of Section 36 of the law I authored.”
In a phone message to reporters, Senator Aquilino L. Pimentel III said “that is pointless because what is the use of the test result? If positive, then what? And how many false or wrong positives and even negatives will our system produce?”
“Malakihang gastos lang yan hence I’m interested to know who came up with such a ‘brilliant’ idea. Ginawang mandatory para talagang malakihang gastos,” he added.
For his part, Senator Joseph Victor G. Ejercito believed Grade 4 might be too young for drug testing and noted the cost it may incur.
“Another consideration will be the cost as it is quite expensive to have a drug test. Just imagine how many billions needed if kids from Grade 4 onwards are to have mandatory drug testing,” he said in phone message to reporters. — Camille Aguinaldo

Cayetano, Pompeo affirm Philippine-US alliance in latest meeting

June 22, 2018 | 4:14 pm

Foreign Affairs Secretary Alan Peter S. Cayetano and Secretary of State Michael R. Pompeo reaffirmed the country’s alliance with the United States during the diplomats’ first meeting on Thursday, June 21 with the US Department of State at their headquarters in Washington D.C.
Philippine Ambassador to the US Jose Manuel G. Romualdez said Messrs. Cayetano and Pompeo discussed the Philippines’ independent foreign policy and its position on issues, such as the South China Sea and the Korean peninsula.
“Secretary Cayetano and Secretary Pompeo had an open and cordial interaction at the State Department today and we are optimistic this would reinforce the ties that bind the relations between our two countries and peoples,” Mr. Romualdez said.
In a statement, US Department of State spokesperson Heather Nauert said the two diplomats also explored opportunities to enhance bilateral trade, increase security cooperation and strengthen people-to-people ties between our two countries.
Mr. Romualdez also said Mr. Cayetano delivered a personal letter from President Rodrigo R. Duterte congratulating President Donald J. Trump for the recently concluded summit with North Korean leader Kim Jong Un in Singapore.
The two countries also reaffirmed security ties on Thursday after the meeting of National Security Adviser Hermogenes C. Esperon, Jr. and his American counterpart John R. Bolton in Washington D.C.
“Our meeting with Ambassador Bolton provided us with an opportunity to discuss how we could work together to further strengthen our security alliance,” Ambassador Romualdez said in a statement.
According to Mr. Romualdez, Messrs. Esperon and Bolton discussed issues related to terrorism and other regional concerns, such as the situation in South China Sea.
The Department of Foreign Affairs (DFA) also said Manila expressed gratitude for Washington’s assistance during the Marawi siege last year and on the rehabilitation of the Islamic City.
The DFA noted that it was the first time Mr. Bolton met with top Filipino officials since his appointment as National Security Adviser in April. — Camille Aguinaldo

DoLE commits to continuing fight against child labor

June 22, 2018 | 4:12 pm

The Department of Labor and Employment (DoLE) have committed to continue their efforts towards stopping child labor in the country, in observance of World Day against Child Labor.
“Despite significant advancement we achieved against child labor, we will continue to work together to achieve a child-labor free Philippines and provide clear understanding of child labor issues among the poor households whose children are at risk of being child laborers,” DoLE Undersecretary Joel B. Maglunsod said.
A 2011 Philippine Statistics Authority Survey revealed that 2.1 million children ages five to 17 were trapped in forced child labor.
The labor department will hold an event on Saturday in observance of World Day against Child Labor.
The DoLE Project Angel Tree Team will also provide assistance to child laborers.
These projects by DoLE are in line with the Philippine Development Plan 2017-2022 which DoLE said, “targets to reduce the cases of child labor by 30 percent or 630,000 from the estimated 2.1 million child laborers nationwide.” — Gillian Cortez

DoLE urgers workers to report age-discrimination in the workplace

June 22, 2018 | 3:59 pm

The Department of Labor and Employment (DoLE) urged workers to report companies who violate the Anti-Age Discrimination Law.
“It is clearly stated in the law that age discrimination in workplaces is prohibited, “said Mr. Nicanor V. Bon, program and policy division chief ng Bureau of Working Conditions (BRW). “Even labor organizations are not allowed to refuse or deny membership of any worker due to age limitations,.”
DoLE stated that companies found guilty of this will have to pay fines or face imprisonment. ““Should the court find a company guilty of the offense, it may be fined of P50,000 – P500,000 or its officials meted three months to two years imprisonment,” said Mr. Bon. — Gillian Cortez

The biggest employers in the manufacturing industry

June 22, 2018 | 3:51 pm

By Jochebed B. Gonzales, Senior Researcher
Manufacturing makes up more than a fifth of the Philippine economy.
In 2015, manufacturing establishments in the formal economy generated 1.29 million in employment, according to government data.
Manufacturers of semi-conductor devices and other electronic components employed the most number of people, providing jobs to 150,821 workers.

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AUB looks to automation to improve mobile and online banking

June 22, 2018 | 3:33 pm

Asia United Bank (AUB) is set to leverage its information technology (IT) solutions to improve the banking experience for its customers.
AUB President Manuel A. Gomez said the Ng-led lender will continue to automate in addressing the needs of its client base.
“[Our] innovation initiative will help us to find and focus on our identified markets and their needs and the best strategy is to address these needs,” Mr. Gomez told reporters in a press briefing following AUB’s stockholders meeting Friday.
To improve its products and services, AUB Operations and Technology Head Wilfredo E. Rodriguez, Jr. said the bank will harness automation through developing and enhancing its mobile and online banking platforms.
“We have so far incorporated InstaPay in both out mobile app and internet banking to allow our customers to do real-time fund transfer to other banks on a 24/7 basis,” Mr. Rodriguez was quoted in a statement. — Karl Angelo N. Vidal

500,000 metric tons of Indonesian corn imported ahead of expected shortage

June 22, 2018 | 3:32 pm

Local corn industry firms are importing this year half a million metric tons of the grain as farmers have refused to plant the crop amid low prices.
“For this year, marami tayong import. Mga 500,000 tons for the rest of the year, ” Roger V. Navarro, president of Philippine Maize Federation Inc. (Philmaize) said in a phone interview on Friday.
Mr. Navarro also revealed that local feed millers and livestock sectors have been importing corn from Indonesia since January to augment the expected shortage of supply this third quarter.
“About 500,000 to one million metric tons of corn will be coming from Indonesia because they have four million metric tons surplus, making their grains cheaper,” he added. — Janina C. Lim

Where do we find the most number of unpaid laborers in the manufacturing industry?

June 22, 2018 | 2:42 pm

By Jochebed B. Gonzales, Senior Researcher
Unpaid workers are workers who do not receive regular pay, which is either the working owners themselves or the apprentices and learners. Persons rendering at least one-third of the usual working time for the establishments without regular pay are also considered unpaid workers, based on the Philippine Statistics Authority’s definition.
BusinessWorld Research came up with the top 10 businesses which employed unpaid workers in the manufacturing industry by deducting the number of paid employees from total employment and ranking them based on the highest number of unpaid employees.

GOCC subsidies rise over 80% at start of second quarter

June 22, 2018 | 2:42 pm

FINANCIAL SUPPORT given to state-owned corporations grew 80.19% at the start of the second quarter, data from the Bureau of the Treasury (BTr) data show.
Overall subsidies in April reached P3.87 billion from P2.15 billion last year.
However, it was lower by 89% from the previous month’s P35.24 billion.
The National Irrigation Administration (NIA) received the largest subsidy in April at P2.56 billion, equivalent to 66.15% of the total.
— Elijah Joseph C. Tubayan