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Palace says corruption purge now directed to the local governments

By Arjay L. Balinbin

PRESIDENT Rodrigo R. Duterte’s corruption drive, which was started by the dismissal of his own appointees in the Executive department, will now be directed to local government officials, according to Presidential Spokesperson Herminio Harry L. Roque, Jr.

“The President stated (in the Cabinet meeting last Monday, Jan. 8) that he will continue with the process of cleansing the bureaucracy and that he will now turn more of his attention to local government units (LGUs) including the Autonomous Region in Muslim Mindanao (ARMM),” Mr. Roque told reporters in a press briefing on Tuesday, Jan. 9.

The President, who has vowed to make good on his campaign promise to stop corruption in government including in the awarding of contracts and the use of taxpayers’ money in overseas trips, had recently fired Maritime Industry Authority (MARINA) administrator Marcial Quirico C. Amaro III and Presidential Commission for the Urban Poor (PCUP) Chair Terry Ridon for their foreign travels.

In October last year, Mr. Duterte signed Executive Order No. 43, creating the Presidential Anti-Corruption Commission (PACC), which will have the authority to investigate administrative cases, including graft and corruption, of presidential appointees. But observers also regarded the said order as being in response to the Ombudsman’s intent to investigate the Duterte administration.

Mr. Roque said the commission “has been established but it hasn’t been constituted” yet, adding, “But the President has not waited for its constitution before he has started actually the purging of corrupt officials in government.”

“As you know, even without the commission, he has gone ahead and fired many of his presidential appointees….He has shown that with or without it, he has a firm resolve against corruption and he will implement it,” Mr. Roque also explained.

Section 12 of the said Executive Order transfers to the PACC the “investigatory, recommendatory and other incidental functions of the Presidential Anti-graft Commission,” which were earlier transferred to the Office of the Deputy Executive Secretary for Legal Affairs (ODESLA).

Asked whether the “cleansing” of the LGUs is connected also to President Duterte’s campaign against narco-politicians, Mr. Roque said, “I’m sure it’s all connected. But I guess the President mentioned in the Cabinet meeting his resolve also to clean up the ranks of the local government executives to highlight that it’s not just presidential appointees that would be subject to this campaign to promote public accountability but includes everyone in government.”

It will be recalled as well that in his first six months as President, Mr. Duterte had issued a command for law enforcers to shoot on sight the narcotics-linked politicians, saying the damage they have done to the country is unforgivable.

PHL to protest apparent Chinese airbase

THE PHILIPPINES will make a diplomatic protest to China, which it described as reneging on a promise not to militarize artificial islands in the busy South China Sea waterway, the Southeast Asian nation’s defense minister said on Monday.

The United States has criticized China’s buildup of military facilities on the artificial islands and is concerned they could be used to restrict free movement through the key trade route.

Philippine Defense Secretary Delfin N. Lorenzana’s comment followed a Dec. 30 broadcast of aerial footage by the official China Central Television (CCTV) showing Fiery Cross Reef, which appeared to have been transformed into an airbase.

“The Chinese government said some time ago that they were not going to militarize those reclaimed islands,” Mr. Lorenzana told reporters, adding that the protest would be made through the foreign ministry.

“If it is true and we can prove that they have been putting soldiers and even weapons systems, that will be a violation of what they said.”

There was no immediate comment from Chinese officials.

China and the Philippines have long sparred over the South China Sea, but relations have improved considerably under President Rodrigo R. Duterte, who has been courting Beijing in hopes of winning business and investment.

China has assured the Philippines it will not occupy new features or territory in the South China Sea, under a new “status quo” brokered by Manila as both sides try to strengthen their relations.

Reports about China militarizing reclaimed islands were not new, presidential spokesman Harry L. Roque, Jr. told a regular news briefing.

“We have always been against the militarization of the area,” he added. “It is certainly not OK, because it constitutes a further threat to peace and security in area.”

China is holding to a commitment not to reclaim more islands, Mr. Roque added, however.

“There is still no breach of the good faith obligation for as long as China has not embarked on new reclamation,” he said, when asked about the situation on the reef.

China has denied US charges that it is militarizing the South China Sea, which is also claimed by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

The reef has a hospital with more than 50 doctors, high-speed mobile connections and an airport with a runway of 3,160 meters (3,456 yards) to serve what Beijing calls a “weather station” equipped with radar, Chinese state media say.

In the last 27 years, China’s navy has sent more than 1,000 soldiers to guard the reef, state media have said. — Reuters

Curfew, IRR on smoking among Makati government’s priorities

By Minde Nyl R. dela Cruz

MAKATI CITY will focus on implementing its rules and regulations on curfew for Makati residents 18 years old and below and smoking for the year 2018, according to Mayor Mar-Len Abigail S. Binay-Campos.

Speaking to the media on the sidelines of the Rotary Club of Makati meeting last Jan. 9 after delivering her State of the City Address, Ms. Binay said “Wala pang masyadong priority measures kasi hinahabol namin lahat ng 2017 but we’ll be able to implement IRR (implementing rules and regulations) on curfew and ’yung sa motorcycle. That’s our priority, implementation na. Hindi ’yung magdraft pa lang ng measure.”

(We don’t have priority measures yet because we’re still continuing from 2017 measures but we’ll be able to implement IRR on curfew and motorcycle policies. That’s our priority, the implementation. Not drafting new measures.)

City Ordinance No. 2017-098 was signed by Ms. Binay on September 2017 which sets curfew among the 18 years old and below from 10 p.m. to 4 a.m. daily. Violation of the ordinance would lead to the cancellation of benefits provided by the city government to parents or guardians of said minors on first offense and a fine of P2,000 or five days imprisonment on second offense.

Meanwhile, City Ordinance No. 2017-135 or the ordinance which prohibits small children from riding motorcycles was passed by the city council of Makati on December of last year. A fine of P2,000 to P5,000 or imprisonment was imposed on violators.

Moreover, the city mayor also listed as a priority an ordinance for designating smoking areas in line with Executive Order No. 26 of 2017 which bans smoking in public and enclosed areas.

“We also need to prioritize the ordinance for designated smoking areas because the recent passage of the executive order has immensely affected the businesses because of the smoking ban. We have to finally draft the ordinance to somehow help the business transactions kasi bumaba rin ’yung revenue nila (because the smoking ban decreased their revenues),” Ms. Binay said.

She further noted how the smoking ban has affected establishments with al fresco areas that did not apply for designated smoking areas. All applications are currently on hold until the passage of the ordinance, the mayor said.

Asked if she’s planning a more flexible arrangement, Ms. Binay said: “Not necessarily flexi but I guess kasi yung EO naman, you can take the extreme position or you can take a [softer] position. Basta it has to conform do’n sa batas. Kasi may iba na total smoking ban. ’Di naman namin pwedeng gawin ’yun.” (Not necessarily flexi but I guess with the EO, you can take the extreme position or you can take a softer position. It just has to conform with the law. Because other cities opted for a total smoking ban. We cannot do that.)

Meanwhile, Makati City has recorded a 12% increase in its revenues from P15.21 billion in 2016 to P16.98 billion 2017.

Business taxes were the biggest contributor with P7.5 billion in 2016 to P8.22 billion in 2017, posing a 10% increase.

In line with this, Makati City is in for big spending projects including plans to procure land properties to build three schools, a convention center, and a columbarium in 2018.

“This year, we plan to procure properties kasi ang kulang talaga sa Makati is lupa (because what we really lack in Makati is land), …but hopefully we’ll be able to procure more properties to build more schools… (and) we have plans for a convention center, we have plans for a columbarium, marami kaming plano (we have many plans) for the coming years,” Ms. Binay said.

The city’s budget department is yet to release the breakdown of the budget for 2018.

Duterte OK’s higher base pay for military; pay hike for teachers next

PRESIDENT Rodrigo R. Duterte has signed a joint congressional resolution authorizing the increase in base pay of military and uniformed personnel in the government and vowed that teachers’ salary hike will also happen soon.

A copy of the resolution, which Mr. Duterte signed on Jan. 1, was released to the media on Tuesday, Jan. 9.

The resolution states that “there is a need to adjust the compensation package of Military and Uniformed Personnel (MUP) in order to make it more commensurate with their critical role in maintaining national security and peace and order, taking into consideration their exposure to high-risk environments in the performance of their duties.”

It covers the modified base pay schedule which is applied to all military personal under the Department of National Defense (DND) and uniformed personnel under the Department of the Interior and Local Government (DILG), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (NAMRIA).

The modified base pay schedule for MUP will be implemented in two years. Beginning Jan. 1, the monthly base pay of candidate soldiers under DND and candidate coastguardsmen under PCG shall be P18,587.

As for generals under DND and director generals under PNP and PPSC, their salary in 2018 will now be P121,143, and this will increase to P149,785 beginning Jan. 1, 2019.

The hazard pay of all MUP is fixed at P540 per month, the resolution said.

All the amounts necessary to implement the increase in MUP’s base pay in 2018 will be sourced from the Miscellaneous Personnel Benefits Fund and other available funds.

Presidential Spokesperson Herminio Harry L. Roque, Jr. also announced on the same day that the President wants the teachers’ salary increase to be included in the second package of the Tax Reform for Acceleration and Inclusion (TRAIN).

“The President…stated that with the second tax reform package, he has instructed DBM (Department of Budget and Management ) and all other agencies to find means to increase the salary of teachers after the initial doubling of salaries of the AFP and the police. So the teachers will be next,” Mr. Roque said in a press briefing.

The President, however, has not yet revealed any amounts, according to Mr. Roque. “He did not say how much, but he said that they will have to be tangible results of any implementation of the second tax reform package and he said that that should be the increase in teachers’ salary.”

“But judging by what he wanted for the PNP and the AFP, it could be that he is also aiming to double the entry salary for teachers,” Mr. Roque further said. — A.L. Balinbin

Treasury rejects all bids for 10-year debt papers

THE Bureau of the Treasury continued to reject bids for government securities it put on the auction bloc on Tuesday as banks sought higher returns ahead of expected rate hikes by the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve.

In its first auction for the year, the government fully rejected bids for the fresh 10-year Treasury bonds (T-bond) it offered yesterday.

Tenders reached P18.7 billion, below the P20 billion the government wanted to borrow, with yields bid by banks averaging 5.461%, higher than the 4.915% average logged in the previous auction.

Some bidders even sought a return as high as 6.5%, matching the paper’s coupon rate.

Still, had the government accepted yesterday’s bids at the average rate, the yield would have been lower than the 5.9157% rate for the 10-year debt notes in the secondary market before the auction as well as the 5.9171% quoted at the close of trading.

Yesterday is the fifth consecutive auction that the government decided to reject all bids for its offers of Treasury bills and bonds, which started following its successful five-year retail Treasury bonds (RTB) offering in late November to December. The government raised P255.4 billion from the RTBs, which carry a 4.625% coupon rate.

National Treasurer Rosalia V. De Leon said investors are cautious amid a series of tightening moves expected this year not just from the Fed but also from the local central bank.

“It’s a long tenor so I guess the appetite is not really [strong]…given the expectations about rate hikes from the Fed, and eventually also from the BSP…if ever they [will be] pursued by the BSP,” Ms. De Leon said told reporters after the auction.

“There are also expectations about inflation because of the implementation of the tax reform [law],” she added, but noting that the actual rise in prices should be manageable.

Asked whether the succeeding auctions would see similar results, Ms. De Leon said: “Hopefully not because we’ve also been talking with our market makers, that they will also be providing bids. We’ve just had series of consultations and discussions with them, so once we have already put the market maker program formally in place, then we hope that there would be more reasonable, we’ll see the quotes.”

The government named 10 government securities eligible dealers last month as “market makers” that are expected to provide guidance for rate bids during auctions of government-issued papers by bidding within a certain range and volume.

But Ms. De Leon said the government still has the fiscal space to reject bids as the government is drawing liquidity from the RTBs.

Sought for comment, a bond trader said the market is expecting at least three rate hikes this year in the US amid a recovering economy.

The trader added that the BSP may follow with two increases within the year at about 25 basis points each.

“The tax reform program, it’s inflationary, but not really clear. It’s leaning towards the rate hikes, that’s the outlook right now but it might change,” the trader said in a phone interview.

Another trader said that because of these uncertainties here and abroad, the market is leaning towards shorter-dated debt papers.

“They are anticipating rate hikes this year. What’s happening right now, investors would rather put their money on the short end in the meantime,” the second trader said in a separate phone interview.

The government targets a P888.23 billion gross borrowing plan this year, 22.05% higher than last year.

Of this amount, P176.27 billion will be from external financing while P711.96 billion will be sourced locally. — E. J. C. Tubayan

SM-Goldilocks deal gets PCC go-signal

By Krista A. M. Montealegre,
National Correspondent

SM RETAIL, Inc. secured the green light from the Philippine Competition Commission (PCC) to acquire Goldilocks Bakeshop, Inc. after the SM Group committed to resolve possible issues on tenant discrimination and data protection.

In a statement on Tuesday, the antitrust body said it approved the transaction last Dec. 29, 2017, a day after the SM Group submitted an amended and final undertaking outlining its commitment to ensure a level playing field for Goldilocks’ competitors in its malls.

After the transaction, Goldilocks became a subsidiary of SM Retail, which is owned by SM Investments Corp. The Sy-led holding firm controls leading mall operator and developer SM Prime Holdings, Inc. (SMPHI).

The PCC’s Mergers and Acquisition Office (MAO) identified potential competition issues arising from the transaction in a Statement of Concern issued last Dec. 1.

The SM Group responded with a comprehensive undertaking on Dec. 22, which was enhanced following a series of hearings and discussions.

PCC had raised the “possibility of partial or total foreclosure in the supply of retail space in SM malls to competitors of Goldilocks after its acquisition by the SM Group.”

“While selection of tenants in a mall is market-driven and based on consumer preferences, a mall operator should not be allowed to discriminate mall tenants and lease applicants, especially those that compete with stores owned by the mall itself,” PCC Chairman Arsenio M. Balisacan was quoted in the statement as saying.

“Such discrimination or unfair treatment can come in the form of arbitrarily assigning competitor tenants to disadvantageous locations or unfavorable lease terms, which amounts to partial foreclosure. It can also come in the form of giving less favorable lease terms or completely refuse them lease space in the mall, which amounts to total foreclosure,” Mr. Balisacan added.

Another major concern determined by MAO is the “potential for the SM Group to share a competing mall tenant’s business information to Goldilocks, since the mall operator, through its point-of-sale (POS) system, has access to sales records of tenants.”

“Every mall-goer knows that location is important, while every businessman knows that data informs business strategy. In this transaction, what we want is fair opportunities for big and small players,” Mr. Balisacan said.

In its voluntary commitment, SMPHI pledged to give Goldilocks’ competitors “a fair shake in their lease at all times.”

SMPHI vowed not to give Goldilocks access to competing mall tenants’ information — including sales data captured by the POS system of mall tenants, whether referring to consolidated sales, product category level or stock keeping unit level information, such as prices or quantities sold.

The PCC noted an “information firewall” would ensure that “SM Retail/Goldilocks will not be able to use sales data or information of its competitors to its advantage.”

“The Commission appreciates SM’s move to make these voluntary undertakings — proof that PCC and the business community can work together to promote a culture of competition,” Mr. Balisacan said.

Over a five-year period, a team of experts will conduct periodical monitoring, including random inspections, of the parties.

If the monitoring team identifies violations or deficiencies during inspection, the SM Group will promptly address the concerns, the PCC said. Any breach of the conditions will subject SM to fines, additional remedies, and other measures available to the Commission.

Duterte seeks total ban on firecrackers

By Arjay L. Balinbin

PRESIDENT Rodrigo R. Duterte will ask Congress to enact a law that will totally ban all the firecrackers and pyrotechnics, Presidential Spokesperson Herminio Harry L. Roque, Jr. announced on Tuesday, Jan. 9.

“The President…indicated that he will push for Congress to enact a law that will ban all firecrackers and pyrotechnics,” Mr. Roque told reporters in a press briefing.

The spokesman said Mr. Duterte made the pronouncement during the Cabinet meeting last Monday, Jan. 8.

“Now, he realizes that there will be about 75,000 individuals who are working in this industry. He instructed the Department of Trade and Industry (DTI) to look for alternative livelihood for the would-be displaced workers,” Mr. Roque said, adding, “He wants Congress to enact this law at the soonest time possible so that the public debate on the banning of fireworks and pyrotechnics could begin as early as possible.”

Asked whether it was recommended by the Department of Health (DoH) or prompted by the results of the limited use of firecrackers during the recent holidays, Mr. Roque said: “The President has always banned firecrackers in Davao City as a mayor, so I don’t think it’s a result of a recommendation of any other than it’s a result of his own prognosis that firecrackers and pyrotechnics are inimical to human health and safety.”

Mr. Roque likewise said that there will be consultations with sectors that will be affected. “In fact, that’s why he wants Congress to enact the law…and begin hearing(s) on the proposed bill that would ban firecrackers as early as possible to afford stakeholders to be consulted.”

For his part, Department of Health (DoH) Secretary Francisco T. Duque III reported last Jan. 1 that the number of firecracker-related accidents and injuries has plunged by more than half compared to last year’s recorded cases.

He likewise announced that the latest number of fireworks-related injuries is “77% lower than the 5-year (2012-2016) average.”

DoH claimed that Piccolo remains the number one cause of injuries at 94 cases which accounts for 49% of all cases, followed by Kwitis at 14 or 7%, unknown firecrackers, 12 or 6%, fountain with 10 cases or 5%, and Boga with 9 cases that accounts for 5% of all cases.

Moreover, according to Mr. Duque, “the government’s campaign against fireworks has reduced the number of injuries.”

In June 2017, it will be recalled that Mr. Duterte signed Executive Order (EO) No. 28 limiting the use of firecrackers to common community areas while other pyrotechnic devices may still be enjoyed anywhere subject to existing laws.

The EO 28 directs that the use of firecrackers be “confined” to “community fireworks displays.”

The document also spells out what qualifies as “community fireworks display,” which should be “conducted on the occasion or as part of a celebration, competition, or similar event held in a venue other than a place of residence; conducted under the supervision of a trained person duly licensed by the PNP (Philippine National Police); and if allowed by municipality/city concerned through a permit specifying the details of the fireworks display in conformity with national standards, rules and regulations.”

Meralco to invest in 2 wind farms

By Victor V. Saulon, Sub-Editor

MANILA ELECTRIC Co. (Meralco) is looking to invest around $800 million in two wind farms, its president said, as he disclosed details about the company’s plan to expand its portfolio to include 300 megawatts (MW) of the renewable energy.

“You’re talking 300 MW. So [the investment is] probably lower than $900 million. At $3 million per MW, make it $800 million, plus or minus,” Oscar S. Reyes, Meralco president and chief executive officer, told reporters on Tuesday.

He said on a 75%-25% debt-equity ratio for project financing, Meralco would need to invest roughly $200 million if it would shoulder the full equity portion.

“I think it will take maybe 24 months for the whole [investment to be spent],” Mr. Reyes said.

Asked why Meralco is diversifying into wind energy, he said: “We have gotten indications that are attractively priced to us because they are significantly lower than second round FiT (feed-in-tariff) rates.”

Mr. Reyes was referring to the guaranteed tariff of P7.40 per kilowatt-hour for 20 years that was awarded to early investors in wind energy. He said the output of the wind farms would be supplied to Meralco in a future power supply agreement (PSA). 

He said the 300 MW wind farm is broken down as two 150-MW projects that are under development. 

“They are developing and they are inviting us to… provide the PSA of their output and at the same time, see if we are interested to invest,” Mr. Reyes said. “We are focusing first on the PSA.”

“Investment is still to be discussed,” he said. “We’d like to be an enabler. If they don’t need the investment, we remain open. It’s up to them whether they [will] welcome [us].”

Mr. Reyes said the wind energy investment of Meralco would be housed under subsidiary Meralco PowerGen Corp. (MGen).

Rogelio L. Singson, MGen president and chief executive officer, earlier said that Meralco’s utility scale power development subsidiary had been looking at wind energy proposals and might make a decision on investing early this year.

Ahead of the proposed renewable energy projects, MGen is developing several coal-fired power plants, including the 100% company-owned ultra-supercritical coal-fired power plant under subsidiary Atimonan One Energy, Inc. 

The two-unit plant, each with a capacity of 600 MW, is awaiting Energy Regulatory Commission (ERC) approval of its power supply agreement (PSA). 

MGen has a 47% stake in Redondo Peninsula Energy, Inc. (RP Energy), which is awaiting the ERC approval of its PSA with Meralco for 225 MW of the first of two 300-MW units, and 75 MW with the retail electricity supply business of Aboitiz Power Corp. 

Therma Power, Inc., a unit of AboitizPower, owns 25% of RP Energy’s coal-fired power plant at the Subic Freeport Zone, while Taiwan Cogeneration International Corp. holds another 25%.

MGen has a 51% stake in another coal-fired power plant being developed in Quezon province with a capacity of 455 MW under San Buenaventura Power Ltd. Co. (SBPL).

SBPL, which is expected to start commercial operation in mid-2019, is a partnership between MGen and New Growth BV, a subsidiary of the Electricity Generating Public Co. Ltd. or EGCO Group of Thailand.

Another project, St. Raphael Power Generation Corp., is a 50-50 partnership between MGen and Consunji-led Semirara Mining and Power Corp. It is also awaiting ERC approval of its 400-MW PSA with Meralco. The planned coal power plant in Calaca, Batangas has two units, each with a capacity of 350 MW. 

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls.

Robinsons Bank, Pru Life forge bancassurance deal

By Karl Angelo N. Vidal

ROBINSONS BANK Corp. signed a bancassurance partnership with British life insurer Pru Life UK yesterday in a bid to bolster its product offerings.

In the distribution agreement signing held yesterday in Quezon City, Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte said the three-year bancassurance partnership will generate approximately P40 million to P50 million in premiums in the first year.

“We have signed a three-year contract with Pru Life and we expect over the next three years to accelerate, but for the first year, we are expecting P40 [million] to P50 [million],” Mr. Sarte said.

He added that the lender wants to offer bancassurance products to “complete its product offering” in line with its “Roadmap 2020” strategy.

“We have a “Roadmap 2020, that is a five-year plan that we launched in 2015, and bancassurance is one of the major products that we really intended to offer so we can complete our product offering in the market for our customers,” Mr. Sarte said.

Lance Y. Gokongwei, chairman of JG Summit Holdings, Inc.’s banking arm, said they are confident about the partnership, given that Pru Life is “a very stable and well-established multinational company.”

Robinsons Bank will also take advantage of JG Summit’s retail segment to offer bancassurance products.

“In terms of size, we’re not very big, but if you factor in the [JG Summit] ecosystem that we have, there are opportunities for offering the product outside our branch network.”

Robinsons Bank ranked as the 19th biggest commercial bank in asset terms at end-September 2017 with P94.41 billion, data from the Bangko Sentral ng Pilipinas showed.

Robinsons Bank also aims to open 19 new branches this year, which will add to its 134 existing branches.

Meanwhile,  Pru Life president and CEO Antonio Manuel G. De Rosas said the partnership will help the life insurer diversify its distribution channels.

“One of the objectives of partnering with a bank is to diversify [our] distribution, not only agency… You want other channels as well.”

Mr. De Rosas added that while traditional insurance products can now be sold in Robinsons Bank branches, they are still need regulatory approval from the Insurance Commission and the central bank for other offerings.

“We already have the regulatory approval to sell traditional [insurance products], but we are still working on the regulatory approval to sell investment-linked [products],” Mr. De Rosas said, adding that the processing time is still indefinite.

Prior to the bancassurance partnership, Pru Life only had broker partnerships with lenders such as HSBC Philippines and Standard Chartered Bank Philippines.

However, the British life insurer ended terms with the said lenders, as HSBC signed a distribution agreement with Allianz PNB (Philippine National Bank) Life Insurance, Inc. in July 2017, and as Standard Chartered transferred its retail banking operations in the Philippines to Gotianun-led East West Banking Corp. in November 2016.

In 2016, Pru Life, the local unit of UK’s Prudential Plc, ranked fifth in the list of the biggest life insurance companies in terms of premium income with P18.12 billion worth of total premiums.

Bigger banks have already partnered with insurers for bancassurance deals. These include the joint ventures of Bank of the Philippine Islands and Philippine American Life and General Insurance Co., PNB and Allianz, China Banking Corp. and Manulife Philippines, and Rizal Commercial Banking Corp. and Sun Life Financial Philippines.

Sol-Gen on Ortega case: CA decision stinks

THE GOVERNMENT’S top lawyer slammed the Court of Appeals for ordering the release of former Palawan governor Joel Reyes. “The CA Decision stinks. As to where the stench came from, we will investigate it,” Solicitor-General (Sol-Gen) Jose C. Calida said. The Court of Appeals (CA)earlier voided the warrant of arrest issued against Joel Reyes, citing lack of sufficient evidence for a finding of probable cause for Mr. Reyes’s indictment. The solicitor-general noted that in the past, the OSG has taken positions adverse to its clients whenever it finds them in the wrong. “As the People’s Tribune, I cannot sustain the Court of Appeals as they are clearly in the wrong,” Mr. Calida said, adding: “We are ready and raring to take this case all the way to the Supreme Court. There will be no miscarriage of justice under my watch.”

Mary Jane’s birthday

IN THIS 2016 file photo, women’s rights activists hold a candlelight vigil in Manila in behalf of Mary Jane F. Veloso, the overseas worker allegedly framed up in Indonesia where she was convicted of drug trafficking. Ms. Veloso the previous year narrowly avoided death with a last-minute stay on her execution by Indonesian President Joko Widodo. But there has since been no progress in her case, which has been further impeded by a Court of Appeals (CA) ruling in behalf of her alleged recruiters. Her supporters have scheduled a gathering today at the NCCP Conference Room, 879 EDSA, Quezon City, to call for justice and also celebrate her 32nd birthday.

Peso weakens further as players position ahead of Fed rate hikes

THE PESO extended its decline against the greenback and sank deeper within the P50-per-dollar level on Tuesday as market players position ahead of expected rate hikes from US Federal Reserve this year.

The local currency ended yesterday’s session at P50.29 against the greenback, 14 centavos weaker than its P50.15-per-dollar finish on Monday.

The peso traded weaker the whole day, opening the session at P50.18 versus the dollar. Yesterday’s worst showing was at P50.34, while its intraday high stood at P50.155 against the greenback.

Dollars traded spiked to $917.2 million from the $797.1 million that changed hands in the previous session.

“Investors are already counting in the probable rate increases, so they’re already positioning themselves,” Ruben Carlo O. Asuncion, UnionBank of the Philippines chief economist, said over the phone on Tuesday.

“The peso continued to weaken for today amid apparent consensus among various Federal Reserve officials in projecting on at least two rate hikes for 2018,” a trader said on Tuesday, noting that this is boosting the dollar, causing it to strengthen against the local currency.

A second trader said the weaker peso yesterday was in line with the weakness of the other regional currencies, which were also dampened by the stronger greenback.

Meanwhile, Mr. Asuncion noted that remittances after the holiday season have already dissipated, giving the peso less tailwind.

In the past two weeks, the peso strengthened against the greenback, reaching the six-month high of P49.81, as the influx of remittances pushed peso higher.

Asked if the Bangko Sentral ng Pilipinas (BSP) intervened, two traders said it is possible.

“Probably,” Mr. Asuncion speculated. He added that the BSP, though undisclosed, sometimes intervenes in trading to smoothen the volatility.

“If there’s a huge jump in the volume, it’s safe to assume that they [intervened].”

For today, two traders expect the peso to move between P50.10 and P50.40, while the first trader gave a slightly lower range of P50.15 to P50.45.

“The local currency is expected to slightly recover [today] following the release of November local trade data, which are viewed to come better than previous readings,” the first trader said.

Most emerging Asian currencies made only modest moves on Tuesday, with gains capped as a retreat in the euro helped the US dollar strengthen against most of its counterparts.

The greenback rose to a more than one-week high against a basket of other major currencies on Monday, supported by a fall in the euro as investors were cautious after a months-long rally. — Karl Angelo N. Vidal with Reuters

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