DoF wary drinks firms may game sugar tax

August 28, 2017 | 12:05 am

A SUGAR content-based approach for the proposed drinks tax will allow beverage manufacturers to game the system and avoid paying a higher levy, ultimately weakening the proposal’s health objectives, officials said.

Department of Finance (DoF) Undersecretary Karl Kendrick T. Chua said that the multi-tiered approach will only incentivize beverage manufacturers to adjust their sugar content to below the taxable threshold, but will not deter the public from consuming unhealthy drinks.

“The small Coke you can buy below seven grams (of sugar content), but if you drink four of them, there’s no overall effect. The threshold will not work,” he told reporters on the sidelines of the Economic Journalists Association of the Philippines Economic Forum on Friday.

The Senate ways and means committee proposed in a hearing that all beverages containing seven grams of sugar and below will pay a much lower tax, while those above it will pay more, but not exceeding P5.

Mr. Chua also said that the tiered scheme will be difficult to administer.

The sugar-sweetened beverage tax proposal in House Bill No. 5636, or the Tax Reform for Acceleration for Inclusion (TRAIN) Act, slaps a P10 per liter excise tax on sugary drinks regardless of sugar content.

The DoF estimates additional revenue of P47 billion in the first year of implementation. Proceeds will fund the Health department’s anti-obesity programs, and support sugar farmers affected by the measure.

Mr. Chua also said that the Senate’s proposal to cap the excise tax at P5 would not be enough to change consumer behavior.

“Some would ask why we would object when it is lower than P5, when it is not primarily a revenue measure. But that is not the point. The point is there is a health objective,” Mr. Chua said.

“The health objective is that the price should [increase] by 20% to have the optimal impact, so 20% is P10 per liter,” he said.

However, he said a minimum 10% increase in beverage prices may have an effect on consumption.

Other measures of the tax reform program include the reduction of personal income tax rates, harmonizing estate and donor taxes, withdrawing some value-added tax exemptions, and raising excise taxes on petroleum and automobiles. — Elijah Joseph C. Tubayan

ASEAN Villas to be leased after regional bloc’s meetings

August 28, 2017 | 12:05 am

THE ASSOCIATION of Southeast Asian Nations (ASEAN) Villas at the Clark Freeport Zone will be offered to interested parties for lease, after the ASEAN Defense Ministers’ Meeting with their partners (ADMM-Plus), scheduled on Oct. 23 and 24. The 21-unit villas was initially intended for ASEAN’s heads of states who will meet in November. But that gathering has been moved to Metro Manila due to lack of available hotel accommodation in Clark. After the use of the villas, they will be leased to interested parties like company executives and expatriates looking for housing in Clark. Vivencio B. Dizon, president and CEO of the Bases Conversion and Development Authority (BCDA), told reporters in a recent interview that executives and other expatriates had been renting spaces at the Mimosa Villas in Clark. However, the said property is now being developed to build new facilities and commercial areas. Mr. Dizon added that they plan to add more units to address the housing concern in the area. “It’s only 21 villas, we’re going to need more. It’s a very worthwhile investment on the part of BCDA and CDC [Clark Development Corp.] We will recover everything for the privatization of those villas,” he said. — Patrizia Paola C. Marcelo

Philippine volleybelles denied podium finish

August 28, 2017 | 12:05 am

THE 29^th Southeast Asian (SEA) Games bid of the Philippine women’s volleyball team ended yesterday sans a medal after it lost in four sets to Vietnam, 25-27, 25-22, 25-20 and 25-21, in the bronze-medal game at the Malaysia International Trade and Exhibition Center.

Philippine volleybelles denied podium finish — The Philippine women’s volleyball team missed out on the bronze medal in the 29^th Southeast Asian Games after losing to Vietnam in four sets, 25-27, 25-22, 25-20 and 25-21, yesterday. — *PSC-POC MEDIA GROUP*

Relegated to the bronze-medal game after falling to defending gold medalist Thailand the previous day, the Philippine volleybelles tried to salvage a third-place finish but Vietnam would not be a party to it.

The Philippines started well in the bronze-medal game, claiming a tight first set that went overdrive.

But the Vietnamese team would find its bearing and stave off a tough challenge from the Filipinas to claim the next two frames.

Sensing that it has seized the momentum, Vietnam came out strong in the fourth set, creating some distance with the Philippines early.

But the Philippines would make a rally to cut its deficit to 14-10, midway into the frame and later on to 22-19.

Vietnam, however, would not be denied of the bronze as it went on to finish things.

The win marked the second time that Vietnam defeated the Philippines in the event in this year’s Games after that in the group stage in straight sets.

Jaja Santiago top-scored for the Philippines with 20 points, 17 off kills and three aces, while Alyssa Valdez added 17 points.

Jovelyn Gonzaga had 13 and Aby Maraño finished with nine points.

Vietnam, meanwhile, was paced by Tran Thi Thanh Thuy with 26 points and Nguyen Thi Ngoc Hoa had 20.

“We aimed at least for a bronze. I really don’t know what to say right now. But I saw the players fought until the end. We still have to work on our composure and not rush our game. Nonetheless it’s an improvement for us,” said coach Francis Vicente to a group of reporters after their final game.

The fourth-place finish of the Philippines in women’s volleyball is a rung higher of its fifth place position in the 2015 SEA Games in Singapore. — Michael Angelo S. Murillo

Second storm hits Hong Kong amid recovery

August 28, 2017 | 12:05 am

HONG KONG — A powerful storm lashed Hong Kong and Macau on Sunday, just days after a punishing typhoon swept through the region and claimed at least 18 lives.

Both cities raised a Typhoon 8 signal — the third-highest warning level — early Sunday as severe tropical storm “Pakhar” made landfall in the region, where emergency workers were still battling to repair Wednesday’s damage.

A total of 206 flights were cancelled and another 471 delayed because of the latest storm, while 44 flights had to divert, Hong Kong’s Airport Authority said. Cathay Pacific, the city’s flagship, said “cancellations, diversions and severe delays” were expected.

All ferry services in Hong Kong were suspended until the storm warning was lowered in both cities in the early afternoon. A total of 236 trees weakened by Wednesday’s typhoon were brought down by the latest storm in Hong Kong and there were 16 flooding reports.

No deaths were reported on Sunday but Hong Kong hospital officials said 62 people were injured. In Macau, eight people were slightly hurt, a government spokesperson said.

A Chinese cargo ship was sinking east of Hong Kong Sunday morning but all 11 crew members were rescued.

Pakhar brought winds of up to 130 kilometers (80 miles) per hour to Hong Kong. Sunday is a holiday but on a working day the Typhoon 8 signal would have meant the shutdown of the stock market, schools and businesses.

In Macau authorities issued fresh flooding warnings as shops that were battered Wednesday remained closed on Sunday morning. Traffic lights stayed blacked out with power yet to return to parts of the city.

The water supply has been restored, a Macau government statement said Sunday, but buildings with damaged pumps still lack water.

“This is tough but there is nothing we can do,” said shopowner Leung Chin-pang, who has been without water since the first storm hit.

‘LACK OF PREPARATION’
Pakhar — named after a freshwater fish in the lower Mekong river — arrived as worst-hit Macau was still picking up the pieces following Typhoon Hato, the city’s strongest typhoon in 53 years according to its government.

Hato, which triggered the most severe Typhoon 10 warning, ripped through the gambling hub Wednesday, plunging casinos into darkness and causing destructive floods.

The official death toll in Macau reached 10, as the government of the semi-autonomous Chinese city faced recriminations over its lack of preparedness.

A further eight people are known to have died from Typhoon Hato in the neighboring mainland Chinese province of Guangdong, which Pakhar also reached mid-morning Sunday.

Dozens of visitors had returned to the main tourist attraction of Senado Square in Macau Sunday as the clean-up progressed.

Streets appeared cleaner after local residents of all ages and around 1,000 troops from the Chinese People’s Liberation Army Macau garrison worked to clear piles of debris blocking the streets.

Four Hong Kong journalists covering the impact of the typhoon were barred entry into Macau Saturday on the grounds that they “threatened the stability of internal security,” according to the Hong Kong Journalists Association.

The group in a statement expressed “deep regret” over the incident and urged Macau’s authorities to respect press freedom.

Summer is typhoon season for the region including Hong Kong, which can experience storms of such severity that the entire city shuts down. — AFP

DA receives no damage reports after typhoon, rains ‘beneficial’ — Piñol

August 28, 2017 | 12:04 am

AGRICULTURE Secretary Emmanuel F. Piñol said no damage reports have been received following the transit of tropical storm Jolina (international name: Pakhar) through some of the country’s northern provinces.

“[T]he rains brought by Jolina proved to be beneficial to the farmers of the Cagayan Valley area,” Mr. Piñol said in a social media post.

Jolina made landfall in Casiguran, Aurora on Friday night, and left the Philippine Area of Responsibility on Saturday night.

Some areas including villages in Bataan, Aurora and parts of Metro Manila, were hit by floods due to heavy rains.

Although Jolina had been expected to cause significant crop damage due to its strength upon landfall, no damage has been reported so far.

Mr. Piñol said with the added rainfall he is hoping that the agriculture sector will be able to sustain output growth in the last quarter of the year.

“In all of the places I have been to recently, I saw robust standing rice crops, indicators of a bountiful harvest for Wet Season Planting,” said Mr. Piñol.

“A bountiful harvest towards the end of the year is expected to further narrow the rice supply gap which was last reported by the International Rice Research Institute to be between 500,000 to 800,000 metric tons.” he added.

An increase in rice yields to 4.38 metric tons per hectare from 3.9 metric tons currently could make the country rice sufficient as early as 2019.

The Philippine Statistics Authority, in its August forecast, said output of unmilled rice, or palay, for the third quarter is expected to expand 14.14% year on year to 3.39 million tons and grow 6.76% to 10.65 million tons in the second half.

This puts probable palay production for the year at a record 19.22 million tons — up 9.06% from 2016 and exceeding the DA’s target of 19 million tons for this year.

To achieve rice self-sufficiency, the department estimates a need for full-year production of some 21.67 million metric tons of palay. — Janina C. Lim

Tax refund for realty firm affirmed

August 28, 2017 | 12:04 am

THE COURT of Tax Appeals (CTA) has unanimously upheld Kep (Philippines) Realty Corp. in its bid for a P38.7-million refund, as it junked a Petition for Review by the Bureau of Internal Revenue (BIR), saying the petition had “no legal basis.” The CTA upheld its Second Division decision dated April 20, 2016 and resolution dated Aug. 11, 2016, that held the Cebu-based firm is entitled to the refund for its unutilized input Value-Added Tax (VAT) for the 3^rd quarter of 2012. — Kristine Joy V. Patag

Ex-Alaska head coach Tim Cone says Aces just ‘unusually unlucky’

August 28, 2017 | 12:04 am

MORE than seven years removed as coach of Alaska, a team which he led to 13 championships, including a grand slam in 1996, multi-titled mentor Tim Cone had seen a lot of changes from the Aces.

But one thing remained certain — the Aces are a tough team to beat and Mr. Cone realized how scary facing this proud franchise, especially in their current situation.

So when the Gin Kings, Cone’s new squad, faced his ex-team in an out-of-town game in Cebu Saturday, Barangay Ginebra came out fully prepared and played with a sense of urgency to come out with a blowout 94-80 triumph over Alaska.

It was the 14^th straight loss suffered by Alaska dating back the Commissioner’s Cup. Alaska has yet to win a game in the season-ending Governors’ Cup, putting the squad in a tough situation of having to win as many games as possible or sweep their remaining five games to get a chance of a securing a possible playoff spot.

Coming to Saturday’s game, Mr. Cone knew he had to face one of his biggest fears in facing the Aces.

“Needless to say, Alaska is an incredibly scary team to play. Of their 13 losses, they could have or should have won at least 10 of them, They are not playing bad basketball. They’ve just been snake-bit and unusually unlucky,” Mr. Cone said.

Mr. Cone said preparation was crucial in their latest win.

“We respect the team, the organization, the coach. We knew we’ll have to prepare for an incredibly tough game out of town. It should be a good one for the Cebuanos,” added Mr. Cone.

The Gin Kings shot 45% from the field, none of them were steadier than Joe Devance, who shot a perfect six-of-six from the 2-point range. The 6-foot-7 veteran Fil-Am finished the game with 19 markers on top of three steals.

Four Ginebra players also ended up in double-digits in rebounding led by Greg Slaughter’s 13, Japeth Aguilar and Scottie Thompson’s 11 each and import Justin Brownlee’s 10. — Rey Joble

Seventeen

August 28, 2017 | 12:04 am

Roger Federer’s career boggles the mind.

His stay at the top of the tennis universe is unparalleled and his 19 Grand Slam titles will in all likelihood defy the test of time. And he did this against a strong field led by Rafael Nadal, Novak Djokovic, and Andy Murray whose bold challenges were great entertainment but provide but a fitting front act to Roger’s laurels. Observers decided at the end of 2016 that 17 Grand Slams was probably the standard in the next quarter century but then he won two others in quick succession. He defines staying the moniker of legend.

When in 2016, our boys succeeded in snagging two golds and two silvers in the International Math Olympiad (IMO) in Hong Kong, we gushed at the novelty and the audacity of this achievement. The nation tasted the rarified air of being ranked 17 in this pinnacle of cerebral contests. We stepped into the world of the elite; not the elite of physical prowess where the Usain Bolts and the King James of this world rule the roost but of the elite of cerebral Olympians where the Einsteins and the Newtons are the icons.

For what sets us apart in the world of the sentient is rationality; “rational animal” Descartes called us continuing in the long Aristotelian tradition. This tradition gave us: “All men are rational; Donald is a man; Therefore, Donald is rational.” Which is why some will never cease hoping for the method in Donald’s madness. The same tradition gave us: x2 + y2 = z2 which in turn suggested Fermat’s Last Theorem, xn + yn ≠ zn, for any positive integers x, y, z and any integer n > 2?” All the world paused in wonder when Andrew Wiles finally cracked Fermat’s code.

That is because rationality finds its sublime expression in the grammar of Logic and Mathematics. The IMOs cultivate prowess in this most forward-looking of human grammars; forward-looking because it undergirds the scientific and technological advances that extends our humanity.

By contrast, physical contests among humans reset no goalposts for the biota. You can run like Usain Bolt but beside a cheetah, you are just a fast disappearing point in the horizon. You can bench press like Arnold Schwarzenegger but beside an adult rhino, you are but a throwback juvenile.

The use of the mind allowed man to leave behind his biotic fellows: fly higher and faster with an airplane, transport farther and heavier with a freight train, live longer and more productively with antibiotics.

Of course, like any instrument, the mind has also been servant to mass mayhem and destruction — to Auschwitz and to Hiroshima. It is a bargain we are condemned to take as humans. So for better or for worse, if we are to earn a modicum of respect as members of the human community, that is, respect borne of a mixture of admiration and envy rather than of political correctness, we have to deliver harvests of the mind.

Making good in the IMOs may not be sufficient for building a future of global respectability.

But making consistently bad in the IMOs, our long-term heritage before 2016, was clearly an albatross to our national resolve to emerge out of the dumps. Which is why making the elite in 2016 was such a pleasure. If we did not “let ourselves go in divine rage” (apologies to Kepler), it was due to the cautionary rider: Was this a one-off? Did we just get lucky?

This is the very same question economists ask of episodes of rapid economic growth: is it sustainable? And it is valid before a history of non-achievement.

Can, for example, President Duterte and Dutertenomics sustain the growth performance of its maligned predecessor? Even more apropos, can Duterte match the quality of growth of that recent past, that is, with Manufacturing besting the Service sector in growth over six years leading to considerable poverty reduction? In 2016 during Duterte’s predecessor’s tenure, poverty incidence fell from 26.2% to 21.6%. Sans rival that!

Replicating two golds in the IMO in one year is very rare indeed even for thoroughbred countries in the IMO. That is not, fortunately, how thoroughbreds are reckoned in the IMOs; thoroughbreds establish their credentials by staying at or close to the top, year-in and year-out. And this staying power reflects a consciously constructed edifice of excellence.

This is the signal achievement of our IMO 2017 team in Rio de Janeiro, Brazil — they maintained the ranking of 17 (among the 111 participating countries) established for the first time in 2016! Not by getting two golds and two silvers but by securing a medal each for the 6 team members (three golds and three bronze)! Two gold haul does look more impressive from the outside but, from the metric of staying the course, they are equivalent. And deserving of similar applause and support.

While we bask as a nation in the achievement of our IMO teams, we cannot stay on the sidelines; we as a nation must weigh in.

Our success as a nation is ultimately the harvest of our collective exertion as a nation. Other nations accord their teams with greater institutional nurture and support; and far grander pedestals in success. The future beckons to us to provide a better pedestal for our IMO heroes, one the equal — or preferably the superior — of the pedestals we accord medalists in lesser pursuits. Our IMO teams have shown us a tunnel out of the dark. Pity it would be if we are found wanting in our collective endeavor to stay in the light.

Raul V. Fabella the chairman of the Institute for Development and Econometric Analysis, a professor at the UP School of Economics, and a member of the National Academy of Science and Technology.

Fugitive Thai ex-PM Yingluck in Dubai, aiming for UK — junta

August 28, 2017 | 12:04 am

BANGKOK — Fugitive former Thai Premier Yingluck Shinawatra fled to Dubai and may try to seek asylum in the UK, a junta source told AFP Saturday, after she ducked a legal ruling, wrong-footing the court and her supporters alike.

Fugitive Thai ex-PM Yingluck in Dubai, aiming for UK -- junta — Supporters of ousted former Thai Prime Minister Yingluck Shinawatra wait for her at the Supreme Court in Bangkok, Thailand Aug. 25. — *REUTERS*

Yingluck, 50, was due on Friday morning to arrive at the Supreme Court for the ruling in her trial for criminal negligence that could have seen her jailed for 10 years.

But she did not show up, staging a vanishing act that wrote a dramatic closing chapter to the 16-year political saga of her mega-rich Shinawatra family.

Speculation swirled on Saturday on the whereabouts of Thailand’s first female prime minister — and her possible escape route.

The junta source, who is well-placed in the security hierarchy, gave a detailed description of her escape, saying she took a private jet from Thailand to Singapore and onto Dubai, the base of Shinawatra family patriarch Thaksin, who is Yingluck’s older brother.

“Thaksin has long prepared escape plan for his sister… he would not allow his sister to spend even a single day in prison,” the source added, requesting anonymity.

“But Dubai is not Yingluck’s final destination,” the source said, adding she may be aiming “to claim asylum in Britain.”

Thaksin, who once owned Manchester City football club, owns property in London and spends significant amounts of time in the city.

The Shinawatra’s political network remained tight-lipped on Saturday in a media blackout that only served to heighten speculation over her dash from Thailand and the likelihood of a possible deal with the junta to allow her to leave.

A senior source inside the family’s Pheu Thai party, also requesting anonymity, on Saturday told AFP Yingluck had fled the country for Dubai a few days before the ruling.

The Shinawatra political dynasty emerged in 2001 with a series of groundbreaking welfare schemes that won them votes and the loyalty of the rural poor.

But their popularity rattled Thailand’s royalist, army-aligned elite, who battered successive governments linked to the clan with coups, court cases and protests.

Yingluck’s government was toppled by a coup in 2014 and she was put on trial over negligence linked to a costly rice subsidy that propped up her rural political base.

Thaksin, Yingluck’s elder brother, has been based partly in Dubai since he fled Thailand in 2008 to avoid jail for a corruption conviction. He was toppled from power by a 2006 coup.

Thai newspapers reported that Yingluck fled through a land border to Cambodia, flew to Singapore and on to Dubai, perhaps two days before her court date.

It was a curveball that appeared to surprise even her family — an elder brother and sister waited at the court for her arrival alongside thousands of supporters.

Shinawatra loyalists expressed sympathy with her shock move, saying the ruling would have been predetermined as her case was politically motivated.

“If she has fled abroad it is because this set of judges are appointed by the military and do not come from a democratic system,” Surachet Chaikosol, 59, a ‘Red Shirt’ activist told AFP.

“I am glad she will not suffer in jail.”

Thai junta Chief Prayut Chan-O-Cha on Friday denied knowledge of Yingluck’s whereabouts and expressed surprise at her no-show “as she always insisted that she would fight the case.”

Akanat Promphan, a key member of the anti-Shinawatra protests that presaged the 2014 coup, said Yingluck’s flight reflected badly on her chances in court.

“Obviously she wasn’t confident of her innocence despite lying to the public that she would stand trial to the bitter end,” he said.

But analysts say Yingluck, who was closely monitored by Thai security services, most likely cut a deal with the junta to exit the country.

Had she been jailed, Yingluck’s plight could have stirred anger and unrest from her large support base.

The military is desperate to avoid instability as it digs in for a long stay in Thai politics.

It says elections will be held next year.

But critics say any government that emerges from elections held under a new military-drafted constitution will be straitjacketed, while the economy and society are likely to atrophy under a 20-year junta ‘reform’ strategy. — AFP

MOA expansion to be completed by end-2017

August 28, 2017 | 12:04 am

The SM GROUP targets to finish the expansion of the SM Mall of Asia (MOA) before the year ends, which would make it the largest shopping mall in the country.

SM Prime Holdings, Inc. started the expansion of MOA for its 10^th year anniversary in 2016, in a bid to add around 250,000 square meters (sq.m.) more of floor space to the current 407,000 sq.m.

“They’re trying to hit late this year, if not early next year. That’s a major expansion, and also they’re upgrading a lot of facilities,” SM Investments Corp. (SMIC) Senior Vice-President for Investor Relations Corazon P. Guidote told reporters at the sidelines of the Economic Journalists Association of the Philippines forum in Manila last Friday.

When it opened, SM MOA was the largest shopping mall in the country at the time. However, it was soon overtaken by SM City North EDSA and SM Megamall, which also underwent expansion.

The SM MOA expansion forms part of SM Prime’s plan to add five more malls under its network in 2017. To date, the listed firm owned by the country’s richest man Henry Sy, Sr. has already opened three of the planned malls, namely SM Cagayan de Oro Downtown Premier, S Maison at Conrad Manila in Pasay, and SM Cherry in Antipolo, Rizal.

SM Prime is set to open another mall in Puerto Princesa, Palawan by the second week of September, which will have a total gross leasable area of 65,073 sq.m.

Asked how many more the company plans to add, Ms. Guidote noted the annual expansion target is usually five to six malls.

“But I think next year mas marami (there will be more) because they’re opening smaller malls. I think we’ll be closing around 10 malls next year. But in addition, they’re also expanding existing malls,” she added.

The company’s store network now stands at 63 shopping malls in the Philippines and seven in China, totaling 1.3 million sq.m.

By 2018, SM Prime targets to have 75 malls as part of a five-year road map that looks to double both earnings and revenues by 2018. The company earmarked P50 billion in capital expenditures this year to support the expansion plan.

SM Prime’s net income attributable to the parent rose 14% to P14.39 billion in the first six months of 2017. Consolidated revenues picked up 10% to P43.25 billion, 60% of which came from mall operations which amounted P21.75 billion. — Arra B. Francia

Yields on Treasury bills to move sideways amid lack of catalysts

August 28, 2017 | 12:03 am

By Janine Marie D. Soliman,
Reporter

YIELDS on Treasury bills (T-bills) on offer tomorrow may move sideways amid the lack of fresh leads offshore and at home, even as strong appetite is expected for the shorter-termed papers.

The government plans to raise as much as P15 billion in its auction of T-bills on Tuesday: P6 billion in 91-day debt papers, P5 billion in 182-day notes and P4 billion in 364-day papers.

A bond trader said in a phone interview over the weekend that the offer of the shorter-termed securities is expected to fetch steady to lower rates across the board compared to the previous T-bills auction.

“Yields would probably fall five basis points (bps) lower or at par, same levels compared to the previous auction,” the trader said. “We are expecting that this T-bills auction will be fully awarded.”

The government fully awarded the T-bills it auctioned off on Aug. 14 after rates requested by financial institutions slipped amid market preference for shorter tenured debt instruments brought about by geopolitical tensions abroad.

The Bureau of the Treasury raised P15 billion as planned, with investors wanting to lend as much as P32.3 billion, more than double the volume of debt papers placed on the auction book.

The 91-day T-bills were fully awarded at P6 billion, after total offers reached P16.196 billion and with the papers fetching a rate of 2.161%.

Likewise, the 182-day securities were fully awarded at P5 billion, with total bids reaching P6.179 billion. The papers were quoted at 2.677%.

Lastly, the government raised P4 billion from its 364-day debt notes after banks wanted to buy as much as P9.917 billion. The securities fetched a yield of 2.946%.

At the close of trades in the secondary market on Friday, the three-month, six-month, and one-year papers were last quoted at 2.1624%, 2.9371%, and 2.8610%, respectively.

Asked what factors would cause rates to go lower at tomorrow’s auction, the trader said: “We see demand on the short-end of the curve focused there, especially on the one-year T-bills.”

The trader said the three-month papers could be twice oversubscribed, while the 364-day debt notes may end up 1.5 times oversubscribed. However, the trader said the six-month securities could see demand at only three-fourths of the volume offered.

The trader added that the Economic Symposium in Jackson Hole, Wyoming last Friday would also have an impact on tomorrow’s auction of T-bills.

“Another factor market players are looking at is the Jackson Hole meeting. Everyone is focused on [European Central bank President Mario] Draghi and if he would stop their asset purchase,” the trader said. “Should they decide not to continue its asset purchase or reduce its assets, most likely we would see markets adjusting and higher yields globally.”

Reuters reported Mr. Draghi primarily talked about solid global recovery during last Friday’s symposium, despite some analysts expecting mentions of the strong euro zone currency.

The trader added that mixed data in the US as well as geopolitical uncertainties involving US President Donald J. Trump are also driving yields and demand on domestic and offshore treasuries.

“We have seen mixed data in the US lately and that’s more of what’s driving treasuries as well as what’s happening with Trump, where there’s not much support internally,” the trader said.

Reuters reported Mr. Trump had decided to disband the American Manufacturing Council and the Strategic and Policy Forum, raising questions on the US President’s ability to organize the business community.

Meanwhile, another trader said they see yields at tomorrow’s auction moving sideways following the peso’s recent recovery.

“We see sideways movement on yields since the dollar-peso improved and at the same time there’s a bit liquidity from the market, “ the trader said.

The peso ended at P51.08 versus the dollar on Friday, a bit lower from Thursday’s P51-to-the-dollar finish on Thursday but a rebound from its P51.49 close last Aug. 18.

“There’s demand since the market is liquid, we see all papers to be twice oversubscribed,” the trader added.

The government plans to borrow up to P180 billion locally this quarter — P90 billion each of Treasury bills and Treasury bonds — steady from the previous quarter.

Palace vows law to ‘take due course’ on Kian delos Santos killing

August 28, 2017 | 12:03 am

MALACAÑANG ON Sunday, Aug. 27, vowed anew that justice will be served in the case of Kian Loyd delos Santos, the teenager picked up by police and slain amid an anti-drug operation in Caloocan City. In his statement, Presidential Spokesperson Ernesto C. Abella said: “Kian Loyd delos Santos has been laid to rest. A criminal complaint against the Caloocan policemen involved in the incident has already been filed. Investigation is now in the process. Let us allow the law to take its due course.”