THE LAND Transportation Franchising and Regulatory Board (LTFRB) on Monday met with officials from Indonesian firm Go-Jek, warning them of the different policies in the Philippines for transport network vehicle services (TNVS).
LTFRB Board Member Aileen A. Lizada said she told Go-Jek officials during the meeting that unlike in Indonesia, the Philippine government regulates TNVS and transportation network companies (TNC).
“Go-Jek can surge up to five times in Indonesia, I told them, [in the Philippines it’s] up to two times [only]. Then I asked them if [it’s only] two times, will you survive? They said they need to study,” Ms. Lizada told reporters.
Go-Jek is a technology company in Indonesia with half a million TNVS, of which 250,000 are active, said Ms. Lizada. But unlike in the Philippines, there is no government regulation of TNCs in Indonesia, only fare range.
In April, Go-Jek expressed its intention to enter the Philippines.
“Go-Jek is interested to enter and provide TNVS (transport network vehicle service) services which is only one of the 18 services they offer,” Ms. Lizada said.
She said Go-Jek wants to enter all cities with taxis. However, she clarified that the company needs to submit a request first, which the LTFRB will evaluate.
Ms. Lizada said the LTFRB still needs to study the plans of Go-Jek to protect local TNCs, as they also have taxi-hailing applications. — Denise A. Valdez
KOREAN-LED Widus International Leisure, Inc., the operator of the Marriot hotel chain in Clark, Pampanga, is looking at expanding its hotel projects in the city to total to $1 billion in the next few years.
While the $100-million Marriot Hotel has yet to start operations — targeted by September this year, Daesik Han, president and CEO of Widus International, said the company already broke ground for a $300-million dollar hotel that will locate beside the Marriot Hotel.
The project, now under construction, is slated for completion by mid-2020 and will have 400 rooms. The hotel will be an extension of the $100-million Widus Hotel and Casino that has been operating in Clark since 2008.
This will bring the company’s total investments in the country to $500 million. Mr. Han, however, is looking to double that in the next few years.
“I plan to invest additional $500 million to make current development into a $1-billion project,” Mr. Han said Monday during the Bases Conversion Development Authority press briefing in Pampanga.
He said the company is set to sign, hopefully by next month, a term-sheet agreement with Clark Development Corp. (CDC) to develop another 3.3-hectare property situated behind the Marriot Hotel.
The master plan for the project, however, has yet to be drawn and may be finalized by the time the $300-million extension program for Widus Hotel is completed within an estimated two years.
The official is looking at pouring $500 million on the 3.3-hectare project, bringing his total investments to $1 billion.
Mr. Han is also considering a 250-hectare golf course in Clark but he said this will “not be a major investment.”
Aside from Widus, other property and infrastructure developers gave updates on their developments in Clark.
Among these is Filinvest Land, Inc. (FLI), which has a joint venture with the Bases Conversion and Development Authority to develop 288 hectares of Clark Green City into a mixed-use township.
Francis Ceballos, SVP and cluster head of Filinvest Land, Inc., said the company is set to start the first phase or 60 hectares of the 288-hectare portion of the landmark Clark Green City.
Asked about the investments, Mr. Ceballos said: “Definitely, the investments here will not be small,” adding that the allocation on the Clark City development will have “a pretty good percentage” of the P45-billion capital expenditure of its parent firm, Filinvest Development, Corp. (FDC).
FLI, together with FDC, also has a lease agreement with CDC to develop, manage and operate the 200-hectare Clark Mimosa estate for 50 years.
So far, the golf course in the estate has been renovated while the 3.6-hectare office campus has its first two towers ready to receive tenants by the second half of the year, according to Don Ubaldo, senior assistant vice-president for Townships of Filinvest Alabang, Inc.
For his part, Clark International Airport Corp. Assistant Vice-President Darwin Lacson Cunanan said the Clark airport management is looking to serve some 2.5 million passengers this year following record-breaking passengers posted in 2017.
In April last year, it serviced about 214,000 passengers, a record high month for the agency. In addition, the first trimester last year saw a 841,000 passenger movement of “more than what we had in the whole year of 2011 and below,” Mr. Cunanan said.
For his part, Manuel Louie B. Ferrer, chief marketing officer, and corporate information officer of Megawide Construction Corp. said the tasks involved in Phase 1 of the expansion of the Clark Airport are moving “a little ahead of schedule.”
“Things are going very well on the site,” Mr. Ferrer said.
Megawide leads a consortium with India’s GMR Infrastructure. The consortium bagged a contract to build a new passenger terminal in Clark airport.
The 9,450-hectare Clark Green City is envisioned to be developed as the country’s newest sustainable urban community and globally competitive investment center. — Janina C. Lim
JOEY G. will have a concert at the Winford.
SIDE A’s Joey Generoso — better known Joey G. — will be performing at Winford Manila Resort and Casino’s Hippodrome Bar and Lounge on May 12, 8 p.m. Admission is free of charge for all WMRC members and guests who are 21 years old and above. WMRC members and guests can also get VIP tickets for P1,250 nett per person which includes a VIP seat near the Hippodrome stage and is consumable on food and drinks at the venue. The Winford Manila Resort and Casino is located at the San Lazaro Tourism and Business Park in Manila. Call 528-3600 for inquiries and bookings.
May film screenings
HAPPY TOGETHER is just one of the films to be shown at MCAD this May.
THE Museum of Contemporary Art and Design (MCAD) at De La Salle-College of Saint Benilde (DLS-CSB) continues holding its movie screenings every Wednesday, Friday, and Sunday this May. All films are free and open to the public. Showing on May 9, 11, and 13 is Wong Kar-Wai’s Happy Together, which follows a gay couple who move to Argentina to build a life together then find themselves forced to study their relationship. Screening on May 16, 18, and 20 is Landscape in the Mist by Theo Angelopoulous, about siblings who journey from Greece to Germany in search of their father who they have never met. David Cronenberg’s Existenz follows on May 23, 25, and 27. Starring Jennifer Jason Leigh and Jude Law, this sci-fi tale looks at what happens when fantasy and reality blur into one. All screenings will be held at the MCAD Multimedia Room, with two showings on Wednesdays and Fridays, at noon and 3 p.m., and at noon on Sundays. For details, e-mail mcad@benilde.edu.ph, or call 230-5100 local 3897. MCAD DLS-CSB is located at the School of Design and Arts (SDA) Campus of the De La Salle-College of Saint Benilde, Pablo Ocampo Ave (formerly Vito Cruz), Malate, Manila.
Istorya Vintage Fair
AN annual home-grown vintage fair will run on the weekend of May 19-20 at the Level 3 activity area of SM Aura, Premier, Taguig City. Istorya Vintage Appreciation Fair will feature antiques merchants and activities that will allow guests to try out techniques like pointed pen calligraphy and journaling with vintage tools like wax seals and stamps. The event is organized by Warehouse Eight, a co-working and events space in Makati City, and The Curious Artisan, a local creator of specialty writing and leather goods. There will be vintage cameras, typewriters, ornaments, vinyl and turntables, porcelain, stamps, local memorabilia, stationary, and trinkets which will be sold throughout the event. There will also be demonstrations on the use of old machines like the 1950s Adana letterpress, hot-stamp foiling on a 1970s Kingsley, threading on a hand-crank early 1900s sewing machine, and playing music on an extensive gramophone collection. Free entrance to the fair and activities. For details, call 812-8643 loc. 211
STAR Workshops
DANCE-LOVING children and teenagers now have the opportunity to learn from some of the best instructors in the country at the annual STAR Workshops at the Makati Cinema Square Dance Studio on all Wednesdays of May and June, beginning May 9. There are Baby Ballet classes for kids from ages three to six years old; Ballet for Beginners for children seven to 13 years old; and hip-hop classes for children ages six to 13 years, and hip-hop classes for teens. All sessions will be from 10 a.m. to noon. Tuition is at P4,500. A P500 downpayment will secure a space in the classes. Fees must be settled on or before May 26. For inquiries, contact 230-5100 local 1603, or e-mail culture.arts@benilde.edu.ph.
Music at Shangri-La Plaza
CELESTE LEGASPI will have a Mother’s Day performance at the Shangri-La Plaza mall.
This will be a musical May at Shangri-La Plaza mall, starting on Mother’s Day when Celeste Legaspi, together with the ABS CBN Philharmonic Orchestra, performs under the baton of Ryan Cayabyab. This will be on May 13, 7 p.m., at the East Atrium. The viral Baby Shark song and dance is coming for a fun and spirited interactive performance, plus a meet and greet with the Baby Shark characters on May 18, 6 p.m., at the East Atrium. The Bernie Pasamba Quartet will perform on May 19, 5 p.m.-7 p.m., at the East Atrium. For inquiries, call 370-2597/98 or visit www.facebook.com/shangrilaplazaofficial.
SHANGRI-LA’s Mactan Resort and Spa in Cebu has picked Aboitiz Power Corp.’s brand for clean and renewable energy, Cleanergy, to power its operations and support its environmental sustainability initiatives.
The resort is able to choose its own electricity supplier under the Retail Competition and Open Access (RCOA) scheme.
“(Reliable power supply) is very vital to our operations, as power interruptions have adverse effects on our operations and hamper our guest experience,” Dayalan Swamidurai, director of engineering at Shangri-La’s Mactan Resort and Spa, was quoted as saying in a statement.
With RCOA, Mr. Swamidurai said Shangri-La Mactan has reduced power outages and costs as well as experienced greater transparency in invoicing.
“There are six environmental categories that Shangri-La, as a group, focuses on, including climate change mitigation,” Shangri-La Mactan’s corporate social responsibility (CSR) and sustainability service leader Irene Tan-Meca was quoted as saying in a statement.
Ms. Tan-Meca outlined the hotel’s efforts to reduce the impact of global warming, such as “lowering their energy consumption through existing systems and processes; the use of energy-efficient technologies; banning the use of CFCs in refrigerant and aerosol systems; and alternative energy sources.”
The Shangri-La group is targeting to achieve a 20% reduction in energy and CO2 emissions intensity by 2020, based on 2015 levels.
AboitizPower First Vice-President Sandro A. Aboitiz said Cleanergy is the company’s answer to the rising demand from businesses seeking sustainable energy solutions.
“More than just supplying power, we are looking at providing better solutions to our customers. Our wide portfolio of energy sources, both renewable and non-renewable, gives us the flexibility to meet the demand of our customers, while assuring our customers of the reliability that only AboitizPower can give,” he said.
ECONOMISTS expect economic growth to pick up pace in the first quarter on the back of higher household and consumer spending that would largely offset the effects of inflation and the wider trade deficit. Read the full story.
THE Bases Conversion and Development Authority (BCDA) said six more government agencies are set to transfer to New Clark City (NCC) after President Rodrigo R. Duterte signs an administrative order by the end of June.
BCDA President Vivencio B. Dizon declined to identify the agencies but said that of those moving, “several will… be involved in infrastructure development, disaster preparedness and disaster response and management.”
“Later on, there will be other government agencies. We will know what those agencies are and how many once the administrative order is final and has been signed by the president,” Mr. Dizon said during a briefing and forum on Monday in Pampanga.
In a separate interview with BusinessWorld, he said the draft will be ready within the first half of the year.
“The order will outline the phasing plan,” he said. Mr. Dizon added that many agencies have approached the BCDA to voluntary transfer their offices to Clark.
Late last year, the BCDA said that it is tapping the Departments of Science and Technology, Justice, Environment and Natural Resources, the Office of Civil Defense and the Climate Change Commission to relocate to NCC.
The government hopes to decongest Metro Manila while building a central hub of government agencies outside the capital to make the national government more resilient in the event of a natural disaster.
The first phase of the city is set for completion by 2022, while construction of the Manila-Clark railway will start in the last quarter of 2018. The rail line is expected to be completed by the last quarter of 2021.
The Department of Transportation has led the relocation efforts to the NCC from its office in the Ortigas district. — Janina C. Lim
CLARK Development Corp. (CDC) said it hopes to increase exports by 40% this year after a record rise in 2017.
CDC President and Chief Executive Officer Noel F. Manankil said the 2018 projection would outstrip 2017 export growth of 35% to P6.87 billion, led by shipments of semiconductors.
On the investment front, CDC set a target of doubling 2017 levels in five years, with a focus on tourism and manufacturing enterprises.
Some 54 additional locators were registered in 2017, bringing the total to 949.
For this year, the CDC is also looking at doubling its capital expenditure to P2 billion which will be exhausted on road and infrastructure improvements, a bigger program compared with the P1-billion road expansion efforts it took up last year.
In a statement on Monday, CDC said it posted record net profit in 2016 and 2017 worth a combined P1.81 billion, about 38% of the accumulated net profit of CDC since its incorporation 25 years ago.
Mr. Manankil said CDC’s performance was due to “the sound investment climate and economic policies of the Duterte administration.”
Asked whether the proposed changes in the tax incentive system is deterring investors from Clark, Mr. Manankil, in an interview on Monday, said investors “know that government will always come up with packages that are competitive.”
The government hopes to make Clark “the next big metropolis,” implementing vital infrastructure projects that will bolster economic activity in Central and Northern Luzon.
These include the expansion of the Clark International Airport, the construction of a railway between Metro Manila and Clark and the cargo rail link between Clark and Subic Freeport. — Janina C. Lim
AVIATION think tank Centre for Asia Pacific Aviation (CAPA) said the domestic air travel market will continue growing this year despite the six-month closure of Boracay.
“The six-month closure of Boracay, the most popular destination in the Philippines for both domestic and foreign tourists, will impact the overall domestic market. However, the market should still be able to achieve growth in 2018,” it said in a report.
“Most domestic flights from Caticlan and Kalibo are from Manila, where domestic routes are generally undersupplied due to the slot restrictions. Philippine carriers are reusing the slots that had been used for Manila-Caticlan and Manila-Kalibo flights to other domestic routes,” the report added.
Cebu Pacific, Philippine Airlines and Philippines AirAsia said in April they will redirect flights serving Caticlan and Kalibo to other destinations due to the government-initiated rehabilitation measures in Boracay.
Cebu Pacific canceled daily flights to and from Caticlan and Kalibo for the period April 26 to Oct. 27. Philippine Airlines has done the same, and expanded the number of flights to other tourist destinations such as Cebu, Iloilo, Puerto Princesa, Bacolod, Busuanga, Siargao, Dumaguete and Cagayan De Oro. AirAsia has added flights to Cebu, Davao, Palawan and Iloilo.
Cebu Pacific kept six flights for Caticlan and Kalibo, Philippine Airlines seven flights for Caticlan and nine for Kalibo, and AirAsia two flights each for Caticlan and Kalibo, to accommodate locals traffic.
CAPA said the Boracay closure will cause a “sharp decline in traffic” for Caticlan and Kalibo this year, noting that Caticlan nearly doubled its seat capacity last year following the extension of its runway in late 2016.
“The extended runway enabled Caticlan to accommodate narrow-body jets, prompting AirAsia to launch services and Cebu Pacific and PAL to upgauge their Manila-Caticlan flights from turboprops. The growth on the Manila-Caticlan route accounted for virtually all of the 2% domestic traffic increase at Manila in 2017,” it said.
But it emphasized that growth in domestic flights is expected to remain strong, as passengers that intended to visit Boracay still have many options.
“The Philippines GDP is expected to grow another 7% in 2018. Demand for domestic air travel will continue to grow as the economy and middle class expand,” the report added.
AirAsia President and Chief Executive Officer (CEO) Dexter M. Comendador told reporters last week that the company maintains a positive outlook for the domestic market in 2018.
“Boracay is just a glitch. There’s Panglao (in Bohol), Puerto Princesa, Davao, Cebu. There are other places,” he said. — Denise A. Valdez
DAVAO CITY — The P1.02-billion Davao Food Complex project, which was approved by the National Economic and Development Authority (NEDA) Board at the end of April, is expected to boost the agriculture sector’s contribution to the Davao Region’s economy.
“With the NEDA Board’s approval and the finalization of the project documents, we expect this will be offered within the year, so this succeeds, construction will commence,” NEDA-Davao Regional Director Maria Lourdes D. Lim said during the recent 2017 gross regional domestic product (GRDP) presentation.
The National Development Company under the Department of Trade and Industry is now preparing the tender documents for bidding.
Ms. Lim pointed out that while agriculture is the region’s major industry, it contributed the least to the GRDP, which grew at a double-digit rate of 10.9% for the first time.
The Agriculture, Hunting, Forestry and Fishing (AHFF) sector accounted for 11.2%, while the services sector was the highest at 49.6%, followed by the industry sector at 39.2%.
“We are concerned that our primary sector, which is agriculture, has contributed least to the region’s GRDP,” Ms. Lim said, noting that this is mainly due to the impact of the El Niño phenomenon in 2016.
“At this time last year, our agri-based industries were recovering from the drought,” she said.
“This is not to say there are no investments in agriculture from the private sector because we are seeing an expansion in plantations and also in the agricultural processing sector,” the NEDA official added.
The Davao Food Complex, which will rise on a 25-hectare site in Toril, Davao City, will serve as a support facility to the sector with a trading area, an economic zone for food-based industries, cold storage and warehouses, and shops.
In a previous interview, DTI Secretary Ramon M. Lopez said the complex will also have agri-aqua facilities, specifically for ornamental fish and hatcheries.
Ms. Lim said the project will also involve the development of other infrastructure such as an access road.
Meanwhile, Ms. Lim said the official declaration by the Regional Development Council (RDC) of Davao Region as cacao capital of the Philippines is also expected to increase activity in the sector.
“The declaration is a signal for investors to come in because we are saying that we are open to expanding the production of cacao in the region,” said Ms. Lim, who is also the RDC vice-chair.
She said a group of Japanese investors has established ties with local entrepreneurs in the cacao industry last year for a chocolate processing plant in Davao City.
“We expect the performance of other agricultural industries in the region to increase this year, and not only cacao but also other commodities like banana.” — Carmencita A. Carillo
It has been months since the Tax Reform for Acceleration and Inclusion (TRAIN) 1 took effect, on Jan. 1. There were mixed sentiments from taxpayers with respect to TRAIN 1. Some were happy with more take-home pay for their families; others believe that the increase in take-home pay was more than offset by the spikes in the prices of oil, as well as basic and prime commodities. While there is unending debate and analysis about TRAIN 1, everyone is now looking at another tax reform bill: TRAIN 2 is fast approaching. Are we excited to board?
TRAIN 2 proposes to gradually lower the corporate income tax rate from 30% to 25%. TRAIN 2 also aims to revisit the tax incentives granted to companies. ON THE 25% CORPORATE INCOME TAX RATE
While there are contentious discussions on the timing and possible conditions for lowering the corporate income tax rate in the Philippines, the reduction of tax is definitely a welcome development. While the Philippines imposes a corporate income tax rate of 30%, other countries impose lower rates. In Malaysia, the rate is 25%; in Singapore, 17%; in Thailand, 20%. Thus, the reduction of the Philippine corporate income tax rate will enhance the country’s competitiveness and will, consequently, encourage more multinational companies to invest in the Philippines.
The increase in investors and companies in the Philippines will create more jobs for our citizens, and this impact could be seen as the most concrete positive effect on Filipinos. Further, a lower corporate income tax rate leaves more after-tax profits on the table, creating a pool of profit for possible additional compensation that companies and workers can bargain over.
More employment and higher compensation can result in more spending for goods and services, which could help boost the economy. ON TAX INCENTIVES FOR COMPANIES
TRAIN 2 also discusses modernizing tax incentives for companies. The Philippines has more than 200 laws granting various types of tax incentives. In relation to this, the government is considering limits and other parameters to granting tax incentives to companies. One of the items being considered in the proposed Package 2 of TRAIN is to limit Philippine Economic Zone Authority (PEZA) incentives to a maximum of 10 years and to change the 5% tax on gross income earned to a 15% tax on net income.
This tax incentive issue is crucial, as the government has admitted that some companies and individuals will be hit by the proposed changes to the incentive system.
As an example, PEZA grants an income tax holiday (ITH) of maximum of 8 years, a “perpetual” 5% tax on gross income earned (GIE), and zero value-added tax (VAT) on local purchases, among others. With TRAIN 2 pushing its way in, a complete overhaul of the incentives regime that could reduce the tax benefits is expected.
With this overhaul, many businesses could be discouraged from investing or expanding in the Philippines. Several organizations may plan for or experience business restructuring or, at worst, may leave and close their businesses depending on the magnitude of the tax incentive reduction. Consequently, layoffs will be inevitable.
The challenge for our government is to prevent the possible negative impact of the proposed changes on granting tax incentives. We trust that the government’s economic advisors will fully evaluate the pros and cons of shaking the tax incentives status quo.
While the tax incentives are being analyzed, our government should think of other ways to keep investors or companies engaged in the Philippine economy.
We already have TRAIN 1. TRAIN 2 is fast approaching. We don’t know how the other TRAIN packages will develop. Let’s hope that all these tax reforms would contribute to our country’s economic growth and to the people’s welfare.
Maricel P. Katigbak is a manager with the Tax Advisory and Compliance Division of Punongbayan & Araullo.
It may all come down to the discipline of central banks to determine where emerging markets are headed after another tumultuous week.
A JPMorgan Chase & Co. gauge of expected swings in developing-nation currencies climbed last week to the highest level since February as the dollar’s appreciation rattled investors.
Argentina unexpectedly raised interest rates on Friday for the third time in eight days to 40 percent, the highest among major economies, as the peso tumbled. Turkey’s lira and government bonds slid to record lows, fueling speculation that policy makers will have to tighten further to anchor the nation’s assets.
Investors are assessing the fate of emerging markets as the dollar strengthens and expectations for higher U.S. interest rates harden. Global funds pulled a net $1.2 billion from developing-nation debt from April 25 to May 2. A Bloomberg currency index that measures carry-trade returns from eight emerging markets, funded by short positions in the dollar, declined in the last three weeks as the 10-year Treasury yield held close to 3 percent.
“We have turned slightly negative in the short run for emerging markets on the back of a stronger dollar and portfolio outflows,” said Guillaume Tresca, a Paris-based senior strategist at Credit Agricole SA. “In the long run, we keep our constructive view, especially on the bond side. It is worth highlighting that growth figures have remained steady and it seems the recent decline is temporary.”
An index of developing-market currencies weakened for a fifth week, the longest losing streak in almost three years. The MSCI Emerging Markets Index of equities slumped 1.7 percent, and the Bloomberg Barclays global EM currency government debt index slipped 0.8 percent, its fourth week of losses.
The declines may continue as data this week show U.S. inflation accelerated, underpinning the dollar. The U.S. currency is poised to extend gains as the Fed hikes rates each quarter, according to Mansoor Mohi-uddin, the head of foreign-exchange strategy at NatWest Markets in Singapore. All Eyes on Central Bankers
In the wake of a dramatic series of emergency rate hikes to blunt a plunge in the peso, traders will look to Argentina’s central bank for more clarity on how it plans to calm distressed investors. Benchmark rates at 40 percent pulled the currency into positive territory Friday.
The government backed up the central bank’s efforts by revising its primary deficit target, a move that Goldman Sachs Group Inc. said was “fast and bold.” Yet investors are seeking more fiscal commitment and realistic inflation targets. The peso’s 15 percent retreat this year, the most among the world’s major currencies, is fueling expectations that inflation will accelerate. It closed at 21.8642 per dollar on Friday.
Elsewhere, a recent spike in Romanian money-market rates suggests the central bank may raise borrowing costs for a third time this year when it meets on Monday. And in the Philippines, investors will watch if policy makers meeting Thursday will lift the benchmark rate for the first time since 2014 to curb inflation and stem the weakness of the peso, the biggest decliner in Asia after the Indian rupee this year.
In Peru, economists expect the central bank to hold rates at 2.75 percent amid evidence inflation has bottomed and economic growth is rebounding, ushering in the end of the easing cycle. The Peruvian sol joined a slide in emerging-market currencies over the past month to test a key support level. Serbia and Malaysia are also seen keeping rates steady this week. Balance of Power
Politics will have its say. Malaysians will vote Wednesday in an election contest that’s pitting Prime Minister Najib Razak against the nation’s former premier, Mahathir Mohamad. Malaysia’s benchmark stock index is close to an all-time high amid a rally in consumer stocks this year, while the ringgit is Asia’s best performer so far in 2018.
Najib is fighting for a third term that will extend 60 years of unbroken rule by the Barisan Nasional coalition. At the last election five years ago, he led his alliance to its worst showing, losing the popular vote yet winning control of the parliament by its slimmest-ever margin.
Elsewhere, Lebanon will hold its first parliamentary elections in nine years, a pivotal moment for the country as it tries to ease a crippling debt burden and avoid being dragged deeper into some of the Middle East’s escalating crises. While the polls are scheduled for Sunday, the post-ballot focus will be on building a cabinet able to carry out measures sought by donors, a complicated task in a country where divisions have stymied reforms for decades.
President Donald Trump has said he’ll decide by May 12 whether the U.S. stays in or pulls out of the 2015 nuclear deal that lifted some sanctions on Iran.
Mexican traders will follow Nafta talks as cabinet officials return to Washington along with Canadian peers to seek breakthroughs for a final deal this month. While risks to the agreement appear to have eased, economists say they haven’t completely disappeared and that Nafta is still a market catalyst. Can’t Get Enough of Data
China’s export data for April on Tuesday could give an indication on whether trade friction with the U.S. has started to have some impact. Indonesia reported on Monday its economy grew at a slower pace of 5.06 percent in the first quarter from a year earlier.
The Philippines is also due to release gross domestic product figures on Thursday. Indonesia will also unveil on Tuesday its April foreign reserves, which should indicate the extent to which its central bank intervened to keep its currency stable.
Brazil’s April inflation data, due Thursday, will be watched closely. Traders in swap rates are split over the possibility of another rate cut. The real is among the worst-performing emerging-market currencies in the past month, triggering central bank intervention via rollover swaps auctions. — Bloomberg
