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Asia stocks slip, yen gains amid political turmoil

A rally in Asian stocks petered out on Friday, and the yen climbed, as investors considered the implications of continuing personnel turmoil in the Trump administration.

Japan’s currency, often the go-to asset in times of uncertainty, rose after the Washington Post reported that President Donald Trump plans to remove his national security adviser, something White House Press Secretary Sarah Huckabee Sanders later denied was happening. Stocks were already lower in the region before the reports, with a lackluster session in the U.S. overnight offering little fresh direction ahead of next week’s Federal Reserve policy meeting. Ten-year Treasury yields ticked lower and are heading for a weekly drop after a softer tone in U.S. economic data.

Any removal of H.R. McMaster as the national security adviser would follow the resignation of the White House’s top economic adviser, Gary Cohn, and the ouster of the secretary of state. Investors were earlier weighing the prospects for heightened U.S. trade protectionism after new White House appointee Larry Kudlow said he’d sell gold and buy the greenback, which gained on Thursday.

“Those developments are negative for dollar-yen and the Nikkei,” Tohru Sasaki, head of Japan markets research at JPMorgan Chase & Co. in Tokyo, said of the news on the departure of top U.S. policy makers. At the same time, “the market is getting used to political problems,” both in the U.S. and Japan, he said on Bloomberg Television — so moves may be short-lived.

A political scandal in Japan, with the potential resignation of the country’s finance minister, remains a focus for traders. Weekend poll results on Prime Minister Shinzo Abe’s approval rating may prove key. Also upcoming is a Monday vote in China’s legislature on the next central bank chief in the world’s second-biggest economy.

Elsewhere, West Texas crude steadied above $61 a barrel as signs of stronger U.S. fuel consumption balanced OPEC’s forecasting for the first time that new supplies from its rivals will exceed demand growth this year.

Here are some of the key things happening as the week ends:

Revised Japanese industrial production data are out on Friday. EU27 government officials discuss the European Union’s Brexit position.

And these are the main moves in markets:

Stocks

Japan’s Topix index slipped 0.4 percent at close in Tokyo. The Shanghai Composite lost 0.3 percent and Hong Kong’s Hang Seng Index slid 0.2 percent. South Korea’s Kospi pared losses to 0.1 percent. Futures on the S&P 500 Index were down 0.1 percent after the underlying gauge on Thursday fell 0.1 percent, bringing this week’s loss to 1.4 percent.

Currencies

The Bloomberg Dollar Spot Index was little changed after advancing 0.5 percent on Thursday for its biggest rise in over two weeks. The euro was flat at $1.2302. The yen gained 0.4 percent to 105.88 per dollar.

Bonds

The yield on 10-year Treasuries slid about one basis point to 2.82 percent. Australia’s 10-year yield dropped three basis points to 2.68 percent.

Commodities

West Texas Intermediate crude gained rose to $61.18 in a third day of gains. Gold was steady at $1,316.62 an ounce after falling 0.7 percent on Thursday. — Bloomberg

Singapore still world’s costliest city; Paris, Zurich second

Singapore is the world’s most expensive city for the fifth straight year in the Economist Intelligence Unit’s latest Worldwide Cost of Living report, with Paris and Zurich tied for second place.

Asia Pacific and European destinations dominated the ranks of costliest cities identified in the report released this week. Tokyo and Osaka were conspicuous in their absence from the top 10, edged out by low inflation. The EIU survey is designed to help companies calculate cost-of-living allowances and build compensation packages for expatriates and business travelers.

As recent as 2013, Tokyo was the world’s costliest city to live in. The Japanese capital dropped seven places to 11th over the past year. Hong Kong, last year’s second-most expensive city, slipped to fourth place.

Sydney rose four notches to break into the top 10, with Oslo, Geneva, Zurich and Copenhagen also climbing the list compiled from a survey of 160 items across 133 countries.

“Currency fluctuations continue to be a major cause for changes in the ranking,” the EIU said.

A weakening dollar meant no American city was among the 10 most expensive despite a rise in the relative cost of living in the U.S. over recent years, the EIU said. The report named New York and Los Angeles as the 13th and 14th costliest, down from ninth and 11th position last year.

The dollar fell against all G-10 currencies last year, with the euro rising more than 14 percent.

Paris is the only euro zone city among the top 10 most expensive even as the euro rallied. The EIU said the French capital remained “structurally extremely expensive to live in, with only alcohol, transport and tobacco offering value for money compared with other European cities.”

Tel Aviv was the sole Middle East metropolis among the top 10. Transport costs there are 79 percent above New York prices, the report found.

Car ownership was a factor behind Singapore’s top ranking. However, the report noted that the city-state remains significantly cheaper than its peers in terms of household goods and hiring domestic help.

Though Asia is home to the world’s most expensive places to live, it also has some of the most affordable. South Asian cities including Bangalore, Chennai, Karachi and New Delhi provided good value for money, the report noted. This year, the Syrian capital of Damascus and Venezuela’s Caracas were ranked the world’s cheapest. — Bloomberg

Eagle Cement posts 4% profit growth in 2017

Eagle Cement Corp. reported a net income of P4.26 billion in 2017, up 4% from the previous year, as sales volume and cost efficiencies exceeded targets, the company told the stock exchange on Friday, March 16.

“We have continued to beat our operational targets in terms of volume growth and cost efficiencies. Our efforts in upgrading and debottlenecking of our existing production lines allowed us to keep healthy margins despite the challenging market environment,” said John Paul L. Ang, Eagle president and chief executive officer, in a statement.

The company attributed the higher income last year to higher sales volumes, with net sales reaching P14.87 billion, higher by 12% compared with the figure in the earlier year.

Excluding expenses relating to its initial public offering, net profit rose by 5% to P4.33 billion last year, it said.

Eagle is currently expanding its capacity, with its third production line in Bulacan set to start operations this year. The move is in line with the infrastructure push from both public and private sectors, it said.

On Friday, shares in Eagle were unchanged at P14.68 each. — Victor V. Saulon

Stocks rebound on bargain hunting

Local markets recovered on Friday, March 16, from bargain hunting and performance of blue chips.

The Philippine Stock Exchange Index (PSEi) closed at 8,238.15, during the closing hour, higher by 48.14 points or 0.59%, while the all-shares index closed at 4,982.50, higher by 16.06 points or 0.32%.

“In a stunning upward performance at the close, the PSEi’s value turnover reached a whopping P19.7B on the back of the FTSE rebalancing. The index managed to hold however, despite net foreign selling of P2.5B, the highest figure so far for this year,” Gio Perez of Papa Securities said in an e-mail.

The FTSE 100 closed higher on Mar. 15, halting a three-day skid. It ended at 7,139.76, 0.19% higher.

SM and Jollibee Foods Corp. led the recovery, with JFC closing at 7.5% higher, ending at 305.40. SM Investments Corp ended 2.68% higher.

“The market’s performance today was sort of a bargain hunting after the dip this morning sent the index to its correction territory. Last minute buying during the market run off further lifted the index after JFC surprisingly closed strong today by 7%. Sy companies also helped the index stay above 8,200 after investors bought more of these stocks for declining double digits since reaching their record highs last January,” Jervin S. de Celis, equities trader at Timson Securities Inc said in a message.

Holding firms closed at 8,484.16, up by 1.22 points or 0.02%; industrial at 11,619.42, up by 199.38 points or 1.75%; services at 1,729.23, up by 5.04 points or 0.29%; and property at 3,713.03 higher by 58.47 points or 1.60%.

Mining and oil were down by 180.22 points or 1.58%, to end at 11,222.83; while financials were down by 2.65 points or 0.12% to end at 2,141.83.

Total value traded was P19.7 billion. Losers outnumbered advancers 139 to 74 while 42 were flat. — Patrizia Paola C. Marcelo

Supreme Court asked to force Sereno to submit missing SALN, psychological tests

A petition has been filed requesting the Supreme Court (SC) to force Chief Justice Maria Lourdes P.A. Sereno to submit missing requirements in her appointment as top magistrate.

Atty. Romeo B. Igot on Friday, March 16, submitted a mandamus and/or prohibition petition that asked Ms. Sereno “to submit her SALNs (Statement of Assets, Liabilities, and Net Worth) covering the missing years 2003 to 2005 and 2007 to 2008 as well as to show evidence that she indeed passed the psychological examination administered on her.”

The petition said that should Ms. Sereno fail to do the above mentioned, she should “be prohibited from further assuming her functions as the Chief Justice of the Supreme Court and to declare her appointment as Chief Justice of the Philippine Supreme Court null and void.”

Ms. Sereno — who is currently taking her indefinite leave — faces impeachment for alleged graft and corruption.

She is also facing a quo warranto petition filed by Solicitor General Jose C. Calida that argues her appointment was void for not being able to submit her SALNs.

Mr. Igot, however, claimed his petition — which uses the same arguments as Mr. Calida’s quo warranto — “is the fastest way to remove the Chief Justice.”

According to the English Oxford Dictionary, a mandamus is “a judicial writ issued as a command to an inferior court or ordering a person to perform a public or statutory duty,” while a prohibition is ” a writ from a superior court forbidding an inferior court from proceeding in a suit deemed to be beyond its cognizance.” — Dane Angelo M. Enerio

DoTr unveils expanded Tacloban airport terminal

The Department of Transportation (DoTr) on Friday, March 16, inaugurated the expanded passenger terminal building (PTB) of the Daniel Z. Romualdez Airport in Tacloban City.

The current expansion increased the total floor area of the PTB to 1,100 square meters and added 275 seats to the departure area, to a total of 635 seats from 360 seats before the extension.

The project was implemented to address the growing demand for space in the airport. Included in the project are the expansion of the check-in and pre-departure areas. The project was funded through the CAAP Infrastructure Project from 2016, with an approved budget of P20 million and a contract amount of P17.33 million.

Ongoing since October 2017 are the construction of asphalt overlays, a newly designed parking area, shore protection, and site development for the new terminal area that includes a one-kilometer perimeter fence.

DoTr Secretary Arthur P. Tugade said these improvements will be completed by January next year. — Patrizia Paola C. Marcelo

Lawmakers say closing Boracay for a year will do more harm than good

Senators on Friday, March 16, expressed their dismay over the recommendation of the Department of Environment and Natural Resources (DENR), Department of Interior and Local Government (DILG) and Department of Tourism (DoT) for a one-year total closure of Boracay Island for rehabilitation.

“A one-year total closure may not be the best solution for the island and its locals,” said Senator Maria Lourdes Nancy S. Binay in a statement, noting that the three government agencies seemed unaware of the potential job losses their decision would result.

“A phase-by-phase rehabilitation where government can strictly enforce the law and at the same time implement the needed corrective measures could be the better option for Boracay,” she added.

Ms. Binay, who chairs the Senate committee on tourism, also noted that the government did not mention any concrete plans for stakeholders that could be possibly displaced from the recommendation

“We want the island to breathe the same way we want the people of Boracay to live,” she said.

For his part, Senator Sherwin T. Gatchalian, chair of the Senate committee on economic affairs, offered alternative measures to solve the environmental problems in the country’s top tourist destination.

He said the government could consider shutting down erring business establishments only and filing administrative cases against negligent local officials.

“A complete shutdown of the island will displace 30,000 direct and indirect workers who are considered low-skilled workers. Poverty and hunger will also worsen if unemployment will rise,” Mr. Gatchalian said.

For his part, Senator Emmanuel Joel J. Villanueva, chair of the Senate committee on labor, employment and human resources development, warned that the full closure may cripple the tourism industry.

He urged the national government to simply ensure the compliance of business establishments with environmental laws, such as the Clean Air Act, Clean Water Act and Solid Waste Management Act.

DENR Secretary Roy A. Cimatu has said the total closure of the island from tourism would give them the “ample time” to implement measures restoring and sustaining the tourist destination.

Meanwhile, the management of D’Mall of Boracay belied allegations that its establishment was built on wetlands, noting that its location was “composite of lands that were classified as Commercial, Agricultural, Residential and Cocal.”

It also clarified that the mangrove and swamp area identified as wetlands is located in a lake across the Boracay road from D’Mall.

“It’s imperative that our establishments in Boracay conduct business in a manner that’s environmentally sustainable and socially responsible,” said D’Mall head of legal and regulatory compliance group Rudolph Jularbal, adding that the establishment has secured its environmental compliance certificates (EECs) from the DENR. — Camille A. Aguinaldo

LT Group net income climbs 15% in 2017

LT Group, Inc. reported a net income of P10.83 billion in 2017, higher by 15% compared with P9.39 billion in the earlier year and with its banking unit accounting for nearly half of earnings, the listed holding firm told the stock exchange on Friday.

Philippine National Bank (PNB) accounted for P4.83 billion of the total attributable income, or 45% of the total, with the tobacco business accounting for 40% or P4.39 billion.

Tanduay Distillers, Inc. contributed P631 million or 6%, while Asia Brewery, Inc. made up P551 million or 5%. Eton Properties Philippines, Inc. accounted for P348 million or 3%, while Victorias Milling Co., Inc., where the firm has a 30.9% stake, provided P174 million or 2%. — Victor V. Saulon

Philippines makes withdrawal from ICC official, submits notice to UN

The countdown for the one-year withdrawal period of the Philippines from the International Criminal Court (ICC) started Friday, March 16, as the country formally transmitted its notice to the international body that it has decided to opt out of the Rome Statute.

“The decision to withdraw is the Philippines’ principal stand against those who politicize and weaponize human rights, even as its independent and well-functioning organs and agencies continue to exercise jurisdiction over complaints, issues, problems and concerns arising from its efforts to protect its people,” the letter addressed to UN Secretary-General António M. Guterres stated.

Foreign Affairs Secretary Alan Peter S. Cayetano said the withdrawal was formally conveyed in a note verbale that Philippine Permanent Representative Teodoro Locsin Jr. handed over to the UN Secretary General Chef de Cabinet Maria Luiza Ribeiro Viotti in New York. — Camille A. Aguinaldo

Pimentel: Push for charter change not about extending Duterte’s term

Senate President Aquilino ‘Koko’ L. Pimentel III on Friday, March 16, allayed concerns by some groups in Baguio City over the purported intentions of Congress to fast-track charter change in order to extend the term of President Rodrigo R. Duterte.

“Our party (referring to PDP-Laban) has been advocating for federalism since 1982… This is not for the President.. Don’t be afraid of the ghost that isn’t really there,” he said during the Senate hearing on charter change at the University of the Cordilleras in Baguio City.

The Senate committee on constitutional amendments and revision of codes, chaired by Senator Francis N. Pangilinan, is on the fourth leg of regional consultative hearing on charter change in Baguio City. Among the other senators present during Friday’s Senate hearing are Senators Paolo Benigno A. Aquino IV, Panfilo M. Lacson and Maria Lourdes Nancy S. Binay. — Camille A. Aguinaldo

Business group calls for due process on Sereno impeachment case

Makati Business Club (MBC) on Friday, March 16, urged political and judicial leaders to let the Congress “follow the impeachment process set forth in the Constitution” against Chief Justice Maria Lourdes P.A. Sereno.

In a statement, MBC said: “Regardless of the outcome of the process, giving the chief justice the chance to defend herself within our constitutionally-defined process is essential to demonstrate this country’s respect for the rule of law and to assure all Filipinos that we are protected by our laws.”

“It is absolutely essential for businesses that laws and contracts will be upheld for them to invest and create more jobs which is what will ultimately reduce poverty in a sustainable way,” the business group added.

Solicitor-General Jose C. Calida last week filed a quo warranto petition before the Supreme Court to question the validity of Ms. Sereno’s appointment over her alleged failure to submit complete statement of assets, liabilities, and net worth (SALN) as required by the Judicial and Bar Council (JBC).

Oriental Mindoro Rep. Reynaldo V. Umali, who chairs the House justice committee, earlier noted that the quo warranto petition has no effect on the impeachment case.

House Majority Floor Leader Rodolfo C. Fariñas also said that the Supreme Court could have already decided on the quo warranto petition even before the lower chamber could vote on the impeachment in the plenary as the Congress will go on a Holy Week break starting March 21.

Opposition lawmakers, meanwhile, noted that stalling of the House panel on the impeachment proceedings is an indication of a weak case.

Last year, MBC already criticized the series of impeachment cases against top government officials, noting that this may have “unfavorable impact” on the government’s socioeconomic agenda. — Minde Nyl R. Dela Cruz

No deadline set for ending ‘endo’ — Labor official

An official of the Labor department on Friday, March 16, said there was no deadline set for the signing of the executive order (EO) being pushed forth by labor groups to end contractualization or “endo,” as promised by President Rodrigo R. Duterte during his election campaign.

“The President did not deny the fact that he made that commitment to end endo or contractualization in his campaign. However, the executive order was prepared by labor groups. The President said he will have it studied first so wala naman pong (there was no), as far as the EO, wala naman pong sinet na (there was no set) deadline,” Department of Labor and Employment (DOLE) Undersecretary Jacinto V. Paras said in a press conference on March 16.

However, DOLE Secretary Silvestre H. Bello III was quoted last month as saying that the EO will be signed “by March.”

“As a matter of fact, I can speak being the undersecretary that handles the legislative, we are actually pushing for the passage of a law that would end contractualization,” Mr. Paras said.

“From my personal point of view, maski mag-issue ka ng (even when you issue an) EO, tapos biglang magpasa ‘yung Congress ng batas (then Congress passes a law), the law will prevail. There is a conflict in the EO that they are pushing versus the law, eh ‘yung batas ang magpe-prevail (the law shall prevail),” he added. — Minde Nyl R. Dela Cruz

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