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Google sees next billion users from ‘emerging countries’ like Philippines amid surge in mobile data usage

The Philippines is among the countries from where tech giant Google sees its next billion users emerging.

Google’s seven products, namely Gmail, Android, Google Chrome, Google Maps, Google Search, Youtube, and Google Play Store, currently have more than a billion users each. And the company seeks to have the same engagement with its recently‑launched data management app Datally.

“When you look at where the future growth would be, we realize that the next generation of people who will come online will come from emerging countries,” Kenneth Lingan, head of Google Philippines, said during the launch of Datally on Nov. 28 at the company’s local headquarter in BGC, Taguig City.

These countries, he said, include Indonesia, Nigeria, Brazil, India, and the Philippines, among others.

“This is really exciting thing for us because we know that the future growth would come from [these regions]. These countries come from different regions around the world, but what is amazing is the fact that a lot of these countries have similar fundamentals especially with the way they engage [with] the internet,” he added.

However, Lingan said users from the said countries, which the company calls NBU, are “mobile‑only,” which is a “threat” that results in some other challenges.

“[For] most of us here the first experience of the internet would probably come from a desktop or a laptop, but for most of the NBU, they’re coming from an experience where [their] only entry point to the internet is their mobile phones. It’s not mobile first, in fact in most cases, it’s mobile‑only,” he said.

A large number of these users, according to him, use lower‑end smart phones that “have limitations in terms of power, memory, and capability.” They also encounter challenges in internet connectivity that are “very expensive or sometimes not good enough and not fast enough.”

He added that these users also fail to find “locally‑relevant contents” in their countries.

“The realization for us [at] Google Philippines is the fact that the NBU should not just have different internet from what we enjoy, the first billion users enjoy; it just means that we need to develop a diff ecosystem that is really suitable to their needs and acknowledging the unique needs that they have,” he said.

Mobile data usage surging in Philippines

In the Philippines alone, Lingan said the booming number of Filipino internet users is “truly remarkable.”

“I joined Google three years back and at that time there were less than 45 million people online, today there are more than 60 million online and we’re almost close to half a million people going online every single month. That’s really amazing,” he said, citing Google’s internal statistics.

From January 2016 to January 2017, the number of Filipinos who use internet grew by 27% or 13 million to about 60 million users, based on a report by social media agency We Are Social.

Along with this growth is the booming number of Filipinos who access the internet through their mobile devices. In fact, Google projected a 16% year‑on‑year increase in mobile usage in the country this year.

“That means that there are many more millions of Filipinos who are going online for the first time through their mobile devices. And it opens a lot of opportunities,” he said, adding that smartphones have become “the big game changer.”

According to Lingan, these statistics are evident in Google’s products. Mobile searches through Google Search has increased by 30% year‑on‑year while YouTube’s mobile watchtime also rose by 95% this 2017.

Gabby Roxas, marketing manager of Google Philippines, echoes the same sentiment.

But despite this growth, managing mobile data remains to be a struggle for many Filipinos, Roxas said. This is a problem that Google seeks to address with the launch of Datally.

 

READ: How the new Datally app will help you manage your mobile data usage

 

Citing previous studies conducted by Google Philippines, Roxas said lack of data is the second reason “why Filipinos avoid trying out new apps on their mobile devices.”

“The challenge is do we really understand how much of our data is going to get used up based on what you want to do online? That’s where it can get confusing,” he explained.

Filipinos also struggle in controlling their data usage as many get engrossed with the experience in using apps without minding the amount of data they consume.

“They get engrossed with the experience, then they realize that they need to check how much data they have left. Typically, once they find out how much load or balance they have left, chances are they will restrict their usage because there really is a fear, that they don’t want to use up all their data and get disconnected,” he said.

Despite the internet seemingly becoming a necessity of many Filipinos, mobile data remains expensive.

“If you just look at, say, the most popular pack that is ₱50 with 1GB, the challenge there is for minimum wage earners to spend ₱50 over three days, that’s already 3‑4% of their income, and you have to balance that off with other expenses like basic necessities, education, and other things you need to pay for,” he said.

Due to these problems, Roxas said, many users choose to either set their phone on airplane mode, tether, or schedule their data consumption, which all prevent them from making the best out of their mobile devices.

“These are the challenges that we’re seeing among Filipinos and I think we see it everyday. There are also implications in terms of what we see on our products because there’s really a lot of potential for us to help. If we look at mobile data usage on android phones, 72% have data for up to 15 days over one month, and there’s is an opportunity there,” he said.

Food prices drag Nov. inflation lower

By Lourdes O. Pilar
Researcher
with Elijah Joseph C. Tubayan
Reporter

LOWER food prices caused inflation to ease in November after four straight months of picking up, the government said yesterday.

Food prices drag Nov. inflation lower

The Philippine Statistics Authority (PSA) said headline inflation slowed to 3.3% last month from October’s 3.5%, but was still faster than the 2.5% clocked in November last year.

The preliminary result fell within the Bangko Sentral ng Pilipinas’ (BSP) 2.9-3.6% range for the month and was faster than the 3.2% median estimate in a poll BusinessWorld conducted last week.

With the November result, year-to-date inflation settled at 3.2%, matching the BSP’s full-year forecast and keeping within its 2-4% target band for 2017.

In a statement, the National Economic and Development Authority (NEDA) attributed November’s easing to lower prices of several food items, with the food and non-alcoholic beverages sub-index slowing to 3.2% in November from October’s 3.6%, the lowest since October 2016.

Food-alone inflation slowed to 3.3% during the month, down from October’s 3.8% and November 2016’s 3.5%.

“This can be attributed to lower prices of vegetables, sugar, jam, honey, chocolate and confectionery, fruits, oils and fats, and rice,” the NEDA statement read.

Core inflation — which excludes volatile food and energy prices — was also at 3.3%, slightly faster than the previous month’s 3.2% and past year’s 2.4%.

“We are starting to see year-on-year price declines for ampalaya, cabbage, carrots, tomato, white potato, and imported garlic in the National Capital Region. This signifies that supply is starting to stabilize again,” Socioeconomic Planning Secretary Ernesto M. Pernia said.

Slower annual increments were also observed in the indices of alcoholic beverages and tobacco (6.1% from October’s 6.8%), clothing and footwear (1.8% from 1.9%) and education (2.2% from 2.3%).

“Inflation fell in November as the appreciation of the peso and better weather conditions in the country resulted in a slower increase in the prices of food, beverages and tobacco,” said Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines (Landbank).

“In particular, there was a marked slowdown in the prices of fruits and vegetables, with the latter showing a decline in cost from previous year’s level. The softening in domestic inflation was tempered by higher oil prices, which contributed to higher upticks in the costs of transport, fuel, and electricity,” he added.

Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines (UnionBank), shared this view, saying: “With core inflation moving faster, a notable slowing of price growth came from the heavily weighted food and non-alcoholic beverages.

“Together with softer price increases in crude oil, the prices of these basic commodities were toned down by the peso’s recent strength impacting particularly imported goods,” he added.

Mr. Asuncion also noted that the easing of inflation was caused by “largely favorable” weather all-year-round, resulting in fewer supply shocks.

The peso has returned to the P50-per-dollar level since mid-November after breaching the P51-per-dollar level in the third quarter. The local currency’s recovery was attributed to the faster-than-expected 6.9% economic growth in the third quarter and the increased optimism following the approval of the tax reform plan in the Senate.

“Inflation during the last eleven months suggests that the full-year average might settle slightly above midpoint, but will still be well within our target of 2-4%. This already considers expected price spikes owing to holiday season spending this December,” NEDA’s Mr. Pernia said.

In addition, higher international crude oil prices brought by production cuts from the Middle East and higher electricity and fuel prices “will also continue to exert pressure on headline inflation in the near-term,” Mr. Pernia added.

BSP Governor Nestor A. Espenilla, Jr. was of the same view, saying in a text message to reporters that the inflation print “was expected” following October’s peak.

“We’re still on track with the 3.2% inflation [target] for 2017…” Mr. Espenilla said.

For UnionBank’s Mr. Asuncion, inflation is expected to settle within 3.2-3.5% this month, saying that inflation levels from November to December “usually rise” due to stronger domestic demand amid the holiday season.

On the other hand, Landbank’s Mr. Dumalagan forecasted inflation to come in at 3.4%, citing the possibility of a depreciation of the peso amid expectations of another US rate hike when the Federal Open Market Committee meets for the last time this year on Dec. 12-13.

RATE HIKES LOOM IN 2018
For analysts at Nomura Global Research, a rate hike by mid-year 2018 is possible despite inflation clocking in below their 3.6% estimate for November.

“As such, we continue to see rising risks that our policy rate forecast of two 25 basis point-hikes in H2 2018 may be delivered earlier in the year,” they said in a research note.

“While some of these price pressures in 2018 are driven by supply-side factors (particularly oil and tax reform adjustments), we believe it will be difficult for BSP to look through the resultant inflation risks with growth persistently coming in above potential, which could push core inflation higher, as well as rising concerns of overheating.”

ANZ Research analyst Eugenia Fabon Victorino expects the BSP to keep policy on hold in its next Monetary Board meeting on Dec. 14.

“We are pencilling in rate hikes to begin in [the first quarter]. Inflation pressures are rising even before the tax reform is implemented. Considering the continued rise in credit growth, we believe that tighter monetary policy is necessary,” she said.

“Strong domestic demand should keep average inflation in the upper half of the central bank’s target range. Even with delays in the tax reform, inflationary pressures are already rising.”

For Jose Mario I. Cuyegkeng, senior economist of ING Bank, seasonal demand could push inflation to 3.4-3.5% this month.

“The likely implementation of the Philippine tax reform measure in 1Q 2018 would also exert some upward pressure on inflation. BSP regards the tax-related pressure as transitory,” Mr. Cuyegkeng said.

“Nevertheless, the BSP at the last policy meeting expected inflation in 2018 to average at 3.4%, within the target range of 2-4%. We remain cautious and expect average inflation in 2018 closer to the upper end of the range at 3.7-3.8%,” he added.

“The moderation argues for BSP to continue to utilize this leeway of moderate and within-target inflation expectation by keeping policy settings steady at its Dec. 14 policy rate meeting. We anticipate the first tightening move of BSP in 2Q 2018.”

ADB earmarks half of assistance for infrastructure development

THE Asian Development Bank (ADB) has set aside fresh funds for Philippine loans over the next three years, with infrastructure accounting for nearly half of the pie, the Finance department said in a press release on Tuesday.

Following a meeting with ADB officials on Nov. 24, the Finance department said that the multilateral lender, under its 2018-2020 Country Operations Business Plan (COBP), will provide a total of $4-billion loans, consisting of $1.9 billion (48% of the total) allotted for sustainable infrastructure and development, $1.2 billion for regional development and finance, as well as $900 million for human development.

This is more than the $3.8 billion ADB had earmarked in August for the same period, with $1.8 billion (47%) going to infrastructure development; $1.5 billion to education and skills development, access to finance, expanded social protection and employment opportunities for the youth; and $500 million for good governance and finance programs.

The latest total compares to $4.32 billion in actual loans approved under the 2011-2016 COBP, consisting of $1.45 billion (34%) for sustainable and climate-resilient infrastructure, $2.57 billion for good governance and finance, and $300 million for employment and education programs.

On top of COBP allocations, the ADB also offered $3.68 billion under its separate 2018-2020 Philippine Sovereign Lending Program, 40% of which will go to infrastructure projects. Under this program, it has earmarked about $920 million with another $400 million on standby for 2018, $1.4 billion for 2019, as well as $1.35 billion with $600 million on standby for 2020.

Projects eligible for ADB’s sovereign financing program include the Expanding Private Sector Participation in Infrastructure Sub-Program 2 ($300 million), Inclusive Financial Sector Development Program ($300 million), Secondary Education Support Project ($300 million), Expanded Social Assistance Project ($300 million), Metro Manila Transport Project ($100 million), Metro Manila Water Supply Project ($200 million), Mindanao River Basin Flood Control Project ($160 million), Central Spine Connectivity Project Phase 1 ($100 million) and the Davao Public Transport Modernization Project ($70 million).

The ADB also reaffirmed its support for the Philippines’ flagship infra projects by co-financing with Japan the P211.46-billion Malolos-Clark Railway and the P134 billion North-South Commuter Rail line from Tutuban in Manila City to Los Baños, Laguna, as well as its commitment for a $5.225-million grant for the reconstruction of Marawi City. — Elijah Joseph C. Tubayan

Central bank eyes rules for coin offerings as Bitcoin use surges

THE PHILIPPINES is looking at regulating so-called initial coin offerings (ICOs), as the use of cryptocurrencies gains ground in the country.

Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. said the central bank is in talks with the Securities and Exchange Commission (SEC) on ways to oversee ICOs, in which companies raise funds through the sale of digital tokens.

Companies are seeking to facilitate ICOs and act as a central counterparty for trade in the related tokens to take advantage of the “strong growth potential in this space,” he said in an e-mail.

The use of Bitcoin and its counterparts is rising especially among overseas Filipinos sending money home, as they offer a cheaper and quicker way to move cash.

BSP estimates remittance transactions using bitcoin are now worth about $6 million a month, three times the volume seen last year. While that represents a small proportion of the $2 billion or so of funds Filipinos working abroad send home each month, the increasing use of cryptocurrencies has caught the attention of local regulators.

“The SEC is concerned about possible unlicensed investment-taking activity or otherwise selling of investment contracts in the guise of so-called cryptocurrencies via a so-called initial coin offering,” Commissioner Ephyro Luis B. Amatong said via text.

BSP in February asked businesses using digital currencies to register as a remittance company or a money changer, conduct client checks and report suspicious transactions, following through on a pledge a year ago to oversee the industry. Digital-currency firms had welcomed that development, Mr. Espenilla said.

Still, it “does not, in any manner, constitute an endorsement of virtual currency as legal tender, store of value or investment instrument,” he said.

Governments and regulators around the world are seeking to come to terms with how to treat cryptocurrencies as their prices soar to fresh records almost daily, contributing to a surge in ICOs over the past year. Bitcoin, the biggest cryptocurrency by market value, has surged 12-fold this year and recently changed hands at more than $11,000. — Bloomberg

Money supply growth picks up slightly in Oct.

MONEY circulating in the economy grew faster in October despite a slight slowdown in bank lending, the Bangko Sentral ng Pilipinas (BSP) said yesterday.

Domestic liquidity or M3, the broadest measure of money in an economy, grew 14.8% in October to reach P10.26 trillion from the P8.94 trillion posted in the same month last year.

This was slightly faster than the 14.5% expansion recorded in September.

Domestic claims during the period rose 15.2% from a year ago, slower than the 16.1% uptick in September, driven largely by the deceleration in private sector credit growth, which stood at 16.5% in October from 18.3% in the previous month.

“Nevertheless, growth in bank loans remained robust on account of lending to key production sectors such as electricity, gas, steam and air-conditioning supply; real estate activities; wholesale and retail trade, repair of motor vehicles and motorcycles; financial and insurance activities; information and communication; and manufacturing,” the BSP said in a statement.

Meanwhile, net foreign assets, expressed in peso terms, grew by 6.1% in October from an upward-revised 0.1% in September. This was driven by overseas Filipinos’ remittances and business process outsourcing receipts, the BSP said.

The central bank added that the uptick was also due to the growth in banks’ foreign assets from higher loans and investments in marketable debt securities.

“The growth in M3 remains consistent with the BSP’s prevailing outlook for inflation and economic activity. Going forward, the BSP will continue to monitor domestic liquidity closely to ensure that monetary conditions are conducive to maintaining price and  financial stability,” the BSP said.

BANK LENDING SLOWS
Meanwhile, data released separately showed bank lending growth slowed to 19.9% in October from 21.1% in September after five consecutive months of acceleration.

Total outstanding loans amounted to P6.81 trillion as of end-October, P6.76 trillion previously, BSP data showed.

Likewise, the expansion of bank lending with reverse repurchase agreements entered into by banks factored in slowed to 18% in October from 20.1%.

Loans for production activities, which make up about 88.3% of banks’ total loan portfolio, also grew slower at 18.7% that month from 20.7% in September.

“The growth in production loans was driven primarily by increased lending to the following sectors: electricity, gas, steam and air-conditioning supply (25%); real estate activities (16%); wholesale and retail trade, repair of motor vehicles and motorcycles (19.9%); financial and insurance activities (24.5%); information and communication (40.4%); and, manufacturing (9.4%),” the BSP said.

Bank lending to other sectors also ticked up except for public administration, defense and compulsory social security, which went down 1.1%, and administrative and support services activities, which dropped 22.2%.

Household consumption loan growth, meanwhile, grew 23.4% percent, faster than the prior month’s 20%, mainly due to the expansion in credit card loans, motor vehicle loans and other types of household loans compensated the slower growth in salary-based general purpose loans.

“Going forward, the BSP will continue to ensure that the expansion in domestic credit and liquidity conditions proceeds in line with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives,” the central bank said. — Elijah Joseph C. Tubayan

JFC opens PHL’s biggest poultry processing plant

JOLLIBEE Foods Corp. (JFC) unveiled on Tuesday its poultry processing plant in Sto. Tomas, Batangas in partnership with US agribusiness firm Cargill.

In a disclosure to the stock exchange, JFC said the facility to be operated by its joint venture vehicle company called Cargill Joy Poultry Meats Production, Inc. (C-Joy) will be the country’s largest poultry processing plant with a capacity of 45 million chickens every year.

“We partnered with Cargill to deliver high quality chicken products through Cargill’s technology and quality standards. The facility will provide JFC with dressed and marinated chicken to augment the chicken supply requirements of the growing needs of the JFC brand,” JFC Chief Executive Officer Ernesto Tanmantiong was quoted as saying in a statement.

JFC has a 30% stake in C-Joy, while Cargill owns the 70%. Last year, JFC said it is investing P244.9 million for its stake in the partnership, while Cargill will pour in P571.5 million.

Cargill is a United States-based agricultural firm providing food, agriculture, financial, and industrial products and services. It is present in 70 countries with an employment count of over 155,000.

“Cargill and Jollibee came together to start this plant because of our common commitment to the highest standards in product quality and food safety. This is reflected in the new plant which harnesses technology and global experience to deliver tasty products in an environment which is safe for our employees and is environmentally sustainable,” C-Joy President and Chief Executive Officer Paul Fullbright said in a statement.

C-Joy will be tapping local poultry farmers in Batangas and neighboring provinces to supply the chicken requirements of the facility, which could potentially create around 1,000 jobs for the community.

“We are looking forward to producing the chickens that will be supplied to the C-Joy plant to meet the poultry meat requirements of Jollibee. One thing I was impressed about is the biosecurity requirements to control the food safety at every stage of production,” JFC quoted Highcrest President Vic Lao as saying in a statement.

The facility will partially support the local requirements of several brands under JFC. The company ended September 2017 with a total of 2,756 restaurant outlets in the Philippines, of which 1,023  are under the Jollibee brand, 510 under Chowking, 262 under Greenwich, 411 under Red Ribbon, 471 under Mang Inasal, and 79 under Burger King.

JFC delivered a 16.3% increase in its attributable profit to P5.11 billion in the first nine months of 2017, following a 15% growth in revenues to P94.51 billion boosted by strong sales in both its local and overseas store network.

Abroad, JFC has a total of 888 stores, excluding 355 outlets under the Smashburger brand where JFC has a 40% interest.

Shares in JFC were up 0.99% or P2.40 to close at P243.80 apiece at the Philippine Stock Exchange on Tuesday. — Arra B. Francia

UK firm to manage food outlets at MCIA

By Krista A. M. Montealegre,
National Correspondent

LONDON-BASED SSP Group bagged the contract to manage the food and beverage (F&B) outlets of the Mactan-Cebu International Airport (MCIA).

MCIA President Louie B. Ferrer told reporters on Tuesday SSP Group was awarded a seven-year renewable license to design, develop, set up and operate the F&B units of the Cebu airport terminals.

The contract will begin with the opening of terminal 2 in June 2018.

“This is the first professional organization to run (F&B outlets) in an airport (in the Philippines),” Mr. Ferrer said, noting that Megawide will receive a minimum guarantee or a share of revenues, whichever is higher.

MCIA has a commercial area totalling 10,000 square meters.

SSP has over 400 food brands in its portfolio and operates in over 30 countries within leading travel and retail locations such as airports, railway stations, shopping malls and other leisure locations. 

SSP operates in more than 125 airports, including John F. Kennedy International Airport in New York City, Heathrow Airport in London and Hongkong International Airport.  

“SSP operates in some of the world’s busiest airports. We are proud to partner with them in delivering the world class standards that Filipinos deserve,” Mr. Ferrer was quoted in a statement as saying.

SSP is now finalizing the mix of brands that will be featured in MCIA to satisfy the diverse needs of the growing number of passengers.

“We’re also looking forward to showcasing the best of our local delicacies to international travelers, such as Cebu’s famous lechon and dried mangoes, alongside the best of international cuisine,” Mr. Ferrer said.

At end-September, MCIA has received over 7.4 million passengers. It aims to reach 10 million passengers by the end of this year.

The joint venture company of Megawide and Bangalore-based GMR Infrastructure Ltd. won the contract for the P17.52-billion MCIA Passenger Terminal Building project under the Aquino administration’s flagship public-private partnership (PPP) program and the concession to develop MCIA for a period of 25 years.

Shares in Megawide shed eight centavos or 0.47% to close at P17.10 apiece on Tuesday.

Gov’t rejects all bids for 10-year bonds

THE GOVERNMENT rejected all bids for the reissued 10-year Treasury bonds (T-bonds) yesterday as inflation eased and with the Treasury still having a solid cash buffer.

The Bureau of the Treasury (BTr) yesterday refused to award the debt papers, which have a remaining life of six years and eight months, as bids received totalled just P4.39 billion, falling short of the planned P20-billion borrowing and with rates rising anew.

Submitted bids averaged 5.009%, 61.9 basis points higher than the 4.39% liquid benchmark, the Treasury said.

Prior to the auction, the 10-year papers were quoted at 5.6804% in the secondary market. The yield was unchanged at the session’s close.

Meanwhile, the seven-year papers yielded 5.3179% prior to and after the auction.

The T-bonds offered yesterday were originally issued on Aug. 20, 2014 with coupon rate of 4.125%.

“There’s no reason at all for the very big increase in the rates given expectations about [lower] inflation [since prior to the release, the] median inflation is [at] 3.2%,” National Treasurer Rosalia V. De Leon told reporters after the auction.

Headline inflation eased last month, data from the Philippine Statistics Authority showed, due to decreases in prices of food and beverages.

Inflation slowed to 3.3% in November from the 3.5% print logged the previous month, albeit faster then than the 2.5% rate recorded in the same month last year. This fell within the Bangko Sentral ng Pilipinas’ (BSP) estimate of 2.9-3.6%.

Last month’s inflation rate brought the year-to-date average to 3.2%, within the government’s 2-4% target band and matching the BSP’s full-year forecast.

“[A]t the same time the BSP also reduced the volume for the 28-day TDF (term deposit facility), [which is now at] P40 [billion],” Ms. De Leon added.

“I think they also knew [that] the Treasury were very much already on very solid financing ground because of the RTB (retail Treasury bonds),” the National Treasurer said.

On Monday, the Treasury said it raised P255.4 billion from its second offering of RTBs this year. It issued P125.4 billion worth of five-year papers during the Nov.20-27 offer period, in addition to the P130 billion it raised during the initial auction.

Meanwhile, traders noted that the auction gained little demand from the banks given that the ten-year papers were off-the-run.

“Well, [the rejection is] expected since [the issuance is] off-the-run — it’s not the benchmark one, so I guess [that’s why it received thin] demand,” the trader said.

Off-the-run securities are bonds that were issued before a newly-issued ones. These securities are less traded and carry slightly higher yields.

“Most funds were already used to fund the RTB that’s why there’s no much interest in the papers,” the trader added.

The government borrows from both local and external sources to tap market liquidity in order to finance its budget deficit capped at 3% of gross domestic product, or about P482.1 billion.

This year, the government has set a P727.64-billion borrowing plan, 80% of which or P582.11 billion will be sourced from local lenders through Treasury bills and T-bonds. The P145.53-billion balance, meanwhile, will be borrowed from external creditors. — K.A.N. Vidal

Peso edges higher on profit taking, slower inflation

THE PESO moved sideways against the dollar on Tuesday due to profit taking and as data showed inflation eased last month.

The local currency finished at P50.63 against the greenback yesterday, 3.5 centavos stronger than its P50.665 close on Monday.

The peso traded sideways the whole day, opening the session at P50.61 versus the dollar, while its intraday high was seen at P50.525. Its worst showing for the day was its closing rate.

Dollars traded slid to $668.1 million yesterday from $723.4 million in the previous session.

Traders attributed the slight uptick of the peso to profit taking from Monday’s dollar rally.

“Actually today, [we only saw] sideways trading probably because of profit taking from yesterday’s rally,” the trader said on Tuesday.

The dollar strengthened on Monday on the back of the passage of the tax reform bill in the US. This prompted the Asian currencies as well as the peso to slide.

For Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, the dollar “was steady as market insights see a tax cut may lead to more pronounced downtrend for the greenback.”

“Apart from the profit taking, we also saw some rebound on stocks so there was selling pressure,” the first trader added.

The Philippine Stock Exchange index closed at 8,145.00, up by 60.55 or 0.74% against its previous closing.

While Mr. Asuncion said the subdued November inflation was taken into consideration by market players, another trader noted the released figure did not make much impact on trading given that the 3.3% figure was well within their expectations.

“Inflation data is [already] expected. The median forecast was at 3.2%, so it didn’t make much impact on the peso-dollar trading,” another trader said.

Headline inflation eased last month, data from the Philippine Statistics Authority showed, due to decreases in prices of food and beverages.

Inflation slowed to 3.3% in November from the 3.5% print logged the previous month, albeit faster than the 2.5% rate recorded in the same month last year. This fell within the Bangko Sentral ng Pilipinas’ (BSP) estimate of 2.9-3.6%.

Last month’s inflation rate brought the year-to-date average to 3.2%, within the government’s 2-4% target band and matching the BSP’s full-year forecast.

For today, traders are expecting the peso to play within the P50.50 to P50.80 range, while Mr. Asuncion gave a wider range of P50.40 to P50.90. — K.A.N. Vidal

PSE starts disciplinary proceedings vs broker

THE Philippine Stock Exchange, Inc. (PSE) will be conducting disciplinary proceedings against stock brokerage firm DW Capital, Inc. (DWCI), following a string of unauthorized deals worth P2.6 billion earlier this year.

In a memorandum posted on its Web site on Tuesday, the PSE said it initiated disciplinary proceedings against the brokerage as per Section 40.6.1 of the Implementing Rules and Regulations of the Securities Regulation Code. The provision states in part that a self-regulatory organization is authorized to discipline a member or participant.

With this, the PSE reiterated DW Capital’s preventive suspension, which has been in place since Aug. 10, effectively barring its access from the trading system of the bourse.

“During the pendency of such proceedings, DW shall remain under preventive suspension and shall have no access to the trading system of facilities of the Exchange,” the PSE said.

Prior to the disciplinary proceedings launched by the bourse, Capital Markets Integrity Corp., a self-regulatory organization of trading participants in the PSE, filed a petition last Aug. 8 to take over DW Capital.

The company has been accused of engaging in the unauthorized trading of securities for five accounts totaling P2,599,324,718 as of July 18, 2017. These accounts are owned by the Gaisano family, a member of whom is married to former DWCI President Derwin Ngo Wong.

The corporate regulator then created a special hearing panel to investigate these allegations last September. The SEC, however, has previously declined to disclose details of the investigation as it has yet to conclude the proceedings. — Arra B. Francia

Duterte issues order tagging CPP-NPA terrorists

PRESIDENT Rodrigo R. Duterte has formally declared the Communist Party of the Philippines (CPP) and the New People’s Army (NPA) to be terrorists in a proclamation disclosed by his spokesman on Tuesday, Dec. 5.

The as-yet-to-be released proclamation serves to cap the troubled peace negotiations between the Philippine government and the communist rebels.

The CPP, however, remains a legal organization after the 1992 repeal of Republic Act 1700, the long-standing law which outlawed the party, via Republic Act (RA) No. 7636 as enacted by the 9th Congress.

Presidential Spokesperson Harry L. Roque, Jr. said the proclamation, already signed by Mr. Duterte, is in accordance with RA No. 10168, regarding “any person or entity designated and/or identified as a terrorist, one who finances terrorism, or a terrorist organization or group under the applicable United Nations (UN) Security Council Resolution or by another jurisdiction or supranational jurisdiction.”

“I quote the penultimate portion: In this regard I hereby direct to publish the foregoing designation of the CPP-NPA and all other designated persons, organizations in accordance with sections 3 and 15 of RA 10168 and its implementing rules and regulations,” Mr. Roque said.

“Take note that the domestic statute and the UN Security Council prohibit the giving of funds to terrorist organizations, (and) this will enable law enforcement agencies to run after individuals who will, in any way, provide financial support to the NPA, now that it has been described as a terrorist organization,” he added.

In accordance with the proclamation, the Executive Secretary issued a memorandum directing the Secretary of Justice “to immediately file the necessary application for the proscription or declaration of the CPP-NPA as terrorist organization with appropriate regional trial court” pursuant to the provisions of RA 9372 or the Human Security Act of 2007.

“Because of the proclamation, the (Justice) secretary was directed by the Executive Secretary to file a petition in the RTC because it is not automatic that just because the Executive has classified the group as a terrorist organization,” Mr. Roque said. — Rosemarie A. Zamora

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