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Argentina’s Milei poised to announce record trade surplus led by grain, energy exports

JAVIER MILEI — REUTERS

BUENOS AIRES —  Argentina likely logged the largest trade surplus in its history in 2024, a Reuters analyst poll released on Friday showed, on the back of libertarian President Javier Milei’s bid to boost grains and energy exports in his first full year in office.

Milei, who has been president since December 2023, vowed to make Argentina a net energy exporter using the vast shale reserves in the Patagonian Vaca Muerta region. Grains exports, aided by some easing of currency controls and better weather, also rose.

Argentina is the world’s top exporter of processed soy oil and meal, the third largest for corn and an important wheat and beef producer. It has major lithium reserves needed for electric batteries, as well as shale gas and oil.

Analysts polled by Reuters forecast the year-end trade surplus between $18 billion and $19 billion, blowing past the previous record of $16.89 billion set in 2009.

The December monthly data, set to be published by the national statistics agency on Monday, was estimated to be a $921 million surplus, according to the median of the Reuters poll.

From January to November, Argentina logged a $17.20 billion trade surplus, official data show, turning around the $7.94 billion trade deficit in the first 11 months of 2023.

Milei’s drive to turn Argentina’s economy around through an austerity push has also brought inflation down to close the year at 117.8%, after an April peak of nearly 300%.

Analysts say Argentina’s trade surplus is likely to narrow.

“From here on out, we’ll likely see a scenario in which imports grow considerably,” said Federico Gonzalez, an economistat Empiria Consultores.

Imports have already begun to tick up as the Argentine peso has strengthened against other regional currencies, such as the Brazilian real, and as the Milei administration has lifted some taxes on certain goods.

The government this week announced plans to lift

anti-dumping restrictions on imports to bring down prices on goods such as household appliances.

“In 2025 we may see the trade balance come in at just 40% of the 2024 surplus,” said Milagros Suardi, economist at consulting firm Eco Go. “That would come with a recovery in imports, as well as an economic recovery and improved exchange rate.” — Reuters

Gov’t debt yields mostly rise after US inflation data

YIELDS on government securities (GS) traded on the secondary market mostly rose last week following the release of key US inflation data that led markets to reprice their US Federal Reserve rate cut bets.

GS yields, which move opposite to prices, went up by an average of four basis points (bps) last week, based on data from PHP Bloomberg Valuation Service Reference Rates as of Jan. 17 published on the Philippine Dealing System’s website.

Rates at the short end mostly went down. The 91- and 182-day Treasury bills (T-bills) saw their yields decline by 25.38 bps (to 5.4973%) and 19.34 bps (5.6265%), respectively. Meanwhile, the rate of the 364-day T-bill climbed by 3.92 bps to 5.8954.

At the belly, yields were higher week on week except that on the two-year Treasury bond (T-bond), which declined by 1.40 bps to 5.948%. Rates of the three-, four-, five-, and seven-year bonds rose by 6.08 bps (to 6.0656%), 10.85 bps (6.1457%), 13.41 bps (6.1975%), and 16.23 bps (6.2716%), respectively.

Lastly, at the long end, rates climbed across the board. Yields on the 10-, 20-, and 25-year T-bonds went up by 18.48 bps (to 6.3333%), 10.49 bps (6.3931%), and 10.64 bps (6.3919%), respectively.

GS volume traded was at P27.87 billion on Friday, lower than the P34.56 billion recorded a week earlier.

Traders said GS yields were higher following the release of US inflation data and amid elevated US rates in recent weeks as markets continue to adjust their Fed policy outlook, especially with US President-elect Donald J. Trump set to take office.

“We saw bond yields trade higher this week following some data releases in the US, which could support the case of slower interest rate cuts,” the first bond trader said in a Viber message.

“The market reacted more to the news in US rather than from domestic front,” the second trader said in a phone interview.

The second trader said local yields have been moving up amid higher US Treasury rates, even amid better-than-expected US consumer inflation data and dovish comments from some Fed officials.

On Friday, US Treasury yields turned higher with the dollar as upbeat economic data and earnings appeared to help investors shrug off any jitters ahead of the US presidential inauguration, Reuters reported.

The US dollar strengthened against major peers after four days of declines, while benchmark US Treasury yields — after a three-session drop — hit a two-week low before reversing course.

On Wednesday, softer-than-forecast core inflation data had pushed down the US 10-year yield. Adding more encouragement were comments from Fed Governor Christopher Waller on Thursday signaling that three or four rate cuts are still possible in 2025 if data is weaker.

Yields drifted higher in a choppy session after the upbeat housing and industrial production data supported expectations that the Fed would slow the pace of rate cuts.

The yield on benchmark US 10-year notes rose 1.5 basis points to 4.621%, from 4.606% late on Thursday while the 30-year bond yield rose to 4.8535% from 4.845%.

The two-year note yield, which typically moves in step with Fed interest-rate expectations, rose 4.5 basis points to 4.283%, from 4.238% late on Thursday.

The Fed is widely expected to keep rates steady at its policy meeting later this month, with the markets pricing in a greater than 50% chance for a cut of at least 25 basis points until June, LSEG data showed.

Both traders said the market’s focus remains on how Mr. Trump’s potential policies would affect US inflation and, in turn, the Fed’s policy path, with the second trader noting that bets on the Bangko Sentral ng Pilipinas’ future easing moves have been priced in already.

The second trader added that the market turned defensive after last week’s T-bond auction as the awarded average rate was at the higher end of the expected range due to cautiousness before Mr. Trump’s inauguration, which indicates some aggressiveness on the Bureau of the Treasury’s (BTr) part.

The BTr’s willingness to award at high rates could cause GS rates to rise further, the trader said.

On Tuesday, the BTr raised P30 billion as planned via the reissued 10-year bonds as total bids reached P54.219 billion or almost double the amount on offer.

The bonds, which have a remaining life of seven years and eight months, were awarded at an average rate of 6.249%. Accepted yields ranged from 6.075% to 6.29%.

The average rate of the reissued papers was 2.3 bps above the 6.226% seen for the same bond series and 9.1 bps higher than the 6.158% quoted for the seven-year bond at the secondary market before the auction.

For this week, the first trader said GS rates may continue to track US yield movements.

“We do expect yields to stabilize at a clearer range [this] week, although traders will likely pay close attention to President Trump’s rhetoric when he is sworn into office and how he will pursue his policies moving forward,” the first trader said.

“We expect market to continue to monitor comments from the Fed and the BTr’s awarding behavior,” the second trader added.

On Monday, the Treasury will auction off P22 billion in T-bills, or P7 billion each in 91- and 182-day papers and P8 billion in 364-day papers. On Tuesday, it will offer P30 billion in reissued 10-year T-bonds with a remaining life of nine years and 14 days. — P.O.A. Montalvo with Reuters

NAIAX and portions of Skyway Stage 3 hike speed limit to 80kph

PHOTO BY JOYCE REYES-AGUILA

SMC INFRASTRUCTURE announced an increase in the speed limit on the NAIA Expressway (NAIAX) to 80kph from 60kph, which took effect last Jan. 15. “Similar speed limit adjustments will be implemented on straight sections of Skyway Stage 3 starting Jan. 20, 2025. These adjustments follow a comprehensive study conducted by the company’s traffic safety managers,” said the company in a release.

“This change will make travel on NAIAX and Skyway Stage 3 faster and more efficient for everyone,” said SMC Chairman and CEO Ramon S. Ang. “We have carefully studied this to make sure that it benefits motorists while prioritizing safety.”

He added, “This also complements the ongoing reconfiguration of exit plazas at NAIAX, which should allow for less congestion and help improve motorists’ experience on the expressway.”

Mr. Ang stressed that the 60-kph speed limit will continue to be enforced for all motorists on curved sections of both expressways. “This is to maintain safety, as we do not want to put any motorist at risk of accidents due to miscalculation or oversteering, especially where there are sharp curves, given the limitations to the design of both the NAIAX and Skyway 3,” he explained.

The executive shared that right-of-way issues during the construction of NAIAX and Skyway Stage 3 forced redesigns of some sections and even a number of access ramps due to very limited space. As a result, portions of both expressways have sharp curves where motorists need to slow down.

To ensure compliance, Mr. Ang said traffic patrollers equipped with radar speed guns will continue to monitor and issue citations to motorists caught violating the speed limits. All traffic patrollers are deputized by the Land Transportation Office (LTO) to apprehend erring motorists at exits, confiscate their drivers’ licenses, and issue temporary operator’s permits.

“We appeal to our motorists to observe speed limits at our expressway facilities for the safety of all,” Mr. Ang concluded.

NAIAX is the elevated toll road that connects the Skyway System to the three passenger terminals of NAIA, and other key areas such as Entertainment City, Macapagal Boulevard, Sucat Road in Parañaque City, and the road network to Cavite province.

On the other hand, the 18-km Skyway Stage 3 connects Balintawak, Quezon City, and NLEX to the Skyway System at Buendia Ave. in Makati and the South Luzon Expressway at Alabang, Muntinlupa City. Stage 3 also features key exits in the cities of Manila, San Juan, and Caloocan, providing alternative routes to these areas.

Multisectoral efforts to broaden access to medicines

ALEXANDER GREY-UNSPLASH

As an archipelago of over 7,000 islands, the Philippines faces considerable obstacles in providing equitable access to healthcare including medicines. Universal health coverage can only be achieved when there is access to safe, effective, and quality healthcare, including medicines, according to the World Health Organization (WHO).

Takeda Healthcare Philippines organized the Access to Medicines Summit with the aim of identifying challenges and co-creating solutions to achieve sustainable and equitable access to medicines in the country. Themed “Building Bridges: A Blueprint for Collaborative and Innovative Access to Medicines,” the two-day summit brought together 206 stakeholders from the government, the healthcare sector, non-governmental organizations, patient advocacy groups, and the pharmaceutical industry.

Based on the insights during the summit, Takeda created “Charting a course for sustainable and equitable access to medicines in the Philippines: Proposed roadmap to implementation.” The roadmap discusses government, civil society, and NGO initiatives to address barriers to healthcare and medicines access within the framework of four focus areas for access. These areas for access are the patient journey, health education, advocacy, and supply chain.

As part of the Universal Health Care (UHC) Act, which mandates structural and functional changes in health financing, service delivery, and governance with the goal of achieving UHC, the Department of Health (DoH) is implementing the agency’s medium- to long-term Eight-Point Action Agenda, Para sa Healthy Pilipinas 2023-2028. The action agenda aims to improve health outcomes, strengthen health systems, and enhance access to all levels of care in the country.

Some years ago, the government also established Malasakit Centers in general hospitals to improve access for indigent patients. At these centers, financially incapable patients can conveniently request special assistance from government agencies, charities, and patient advocacy groups in one place.

Beyond the initiatives implemented by the central government, there are also regional schemes for local populations. The Provincial Government of Pangasinan, for example, is implementing the Kalusugan Karaban (Health Caravan) initiative, which delivers mobile health services, including free medical consultations and laboratory services, to remote areas in the province.

After determining that hospital re-admissions are driven by patients not completing courses of medication, the Eastern Visayas Medical Center is implementing Project Tambal (Take-Home Medications Benefit Assistance Link), which provides patients with a complete course of medication for free upon their discharge from hospital.

Public-private partnerships can also provide innovative solutions for expanding and improving access to healthcare and medicines. Baguio City Mayor Benjamin Magalong signed a memorandum of understanding (MoU) with the Pharmaceutical and Healthcare Association of the Philippines (PHAP) aimed at accelerating the implementation of Access to Medicines programs of PHAP members and building a strong ecosystem to broaden healthcare access.

Implementation of the MoU began with Project Genesis, a health-profiling study of the healthcare status, patterns of healthcare use, medicine access, and expenditure of 1,000 households in Baguio City.

The Philippine Pharmacists Association is implementing its Immunizing Pharmacist Certification Program, which provides training to pharmacists in administering vaccines to broaden access to vaccines in the country. To date, more than 1,200 pharmacists have been certified through the program.

In Quezon City, healthcare information technology company MedProjects is collaborating with local healthcare providers to pilot the Health Care Information System, a secure, cloud-based health IT system. The pilot program has led to increased patient access to data and patient empowerment, improved data management, and reduced work burden of healthcare providers.

Philanthropic programs implemented by both government and patient advocacy groups help enhance underprivileged patients’ access to healthcare and medicines. Since 1990, the Philippine Charity Sweepstakes Office (PCSO) has been implementing its Medical Assistance Program (MAP) which provides qualified patients with financial assistance, in partnership with government and private hospitals, health facilities, medicine retailers, and other partners.

Since 2016, Hemophilia Advocates Philippines (HAP) has assisted over 1,000 patients with the cost of 3,000 treatments for hemophilia, primarily through overseas charitable donations. However, customs duties and taxes on hemophilia medicines add to the financial burden of patients. HAP continues to advocate for a more sustainable source of funding for hemophilia care through the inclusion of hemophilia in the PhilHealth Z benefit packages.

Members of the Cancer Coalition Philippines, meanwhile, provides patients with access to cancer medicines through charitable donations.

The challenge of providing access to safe, effective and quality healthcare and medicines rests on multi-stakeholder initiatives and public-private partnerships committed to the same goal of improving the health outcomes of the people.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

Wilcon Depot expects strong sales growth

BW FILE PHOTO

WILCON DEPOT, Inc. is banking on improved consumption as the listed home improvement and construction supplies retailer expects a positive financial performance this year.

“Our outlook is always positive. We have nowhere to go but really grow. Of course, we don’t have control over the external factors, but we see some improvements in all the headwinds that have been happening in the past year,” Wilcon Chief Operating Officer Rosemarie B. Ong told reporters on the sidelines of an event in Taguig City last week.

“Hopefully, 2025 will be a better year for us. Once consumption improves, that will stimulate everything,” she added.

Ms. Ong said Wilcon is looking to open more stores this year, without disclosing specific figures.

The company operates two store formats, consisting of the traditional depots and the smaller Do-It-Wilcon stores.

“We will still continue to expand because we see a lot of opportunities in other areas where we are not present,” she said.

In December last year, Wilcon opened its 100th store, located in Lubao, Pampanga. The company reached the milestone a full year ahead of the company’s 2025 target.

Ms. Ong said Wilcon is also renovating its legacy stores to improve the customer shopping experience.

“What we’re doing now is we’re trying to improve the legacy stores. Our focus is really to renovate and to be more adaptive to consumer behavior, how we can make their shopping experience more seamless, more convenient, and more comfortable,” she said.

For the first nine months of 2024, Wilcon recorded a 22.3% decrease in net income to P2.12 billion as net sales shrank by 1% to P25.68 billion.

The company attributed the decline to the persistent softness of demand for major home improvement and finishing construction supplies as well as delayed construction projects due to bad weather.

It added that expansion-related expenses hampered the company’s net income.

Wilcon shares were last traded on Jan. 17 at P9.89 per share. — Revin Mikhael D. Ochave

TikTok’s purveyors of creams and candies under threat from US ban

NEW YORK — TikTok’s Sunday shutdown in the US poses the biggest threat to the universe of small- and medium-sized firms and so-called influencers who depend on the short-form video site for their livelihood, while big brands are expected to move to other sites.

TikTok says its US site generates billions for businesses selling candies, beauty products, clothes ,and other consumer goods. But now, that economy is under threat. The Supreme Court on Friday unanimously upheld the law banning TikTok in the United States on national security grounds ahead of a blackout this weekend.

After the ruling President-elect Donald Trump said he would make a decision on TikTok, without providing details.

As a marketing tool for businesses, Bytedance’s TikTok generates revenue for itself, and for many of its users and merchants, through sponsorships and by collecting fees on sales.

Many TikTok users are paid to be brand ambassadors for companies, selling merchandise and affiliate partnerships where users are paid commissions by companies when audiences purchase items linked on their social profiles. TikTok also compensates some creators for making videos.

Those who receive revenue from TikTok also include startups, consumer companies, and bloggers cashing in on the platform’s massive reach of up to 170 million Americans.

For example, small- and medium-sized food and beverage businesses, which saw revenue increase by $4.1 billion in 2023 from marketing and advertising on the app, stand to lose the most, according to estimates by economic advisory firm Oxford Economics. That data was commissioned by TikTok.

TikTok CEO Shou Zi Chew said in a video posted to the app on Friday that seven million American businesses earn a living on the platform.

For Mama V’s Candy, TikTok Shop, the e-commerce arm of Bytedance’s video platform, changed the trajectory of the business, said owner Valerie Verzwyvelt.

“We have pretty much stayed viral since the beginning of the TikTok shop launch last year,” said Ms. Verzwyvelt. The company, “which sells extremely sour candies,” made $6 million in 2024 and has sold close to 300,000 units on the app, she said.”

“We are on our second expansion,” she said, a decision the Pineville, Louisiana-based company made before the reality of the Jan. 19th deadline set in. “I have to rebuild my business now.”

Sven Greany, co-owner of California-based independent beauty brand Simply Mandys, said that a TikTok ban would bring his business to a “screeching halt” after a record holiday shopping season.

Simply Mandys made more than $20 million in sales in 2024 on TikTok Shop with the help of livestreaming and Mr. Greany said he never fretted the app’s ties to China. Ninety-five percent of the company’s total sales come from shoppers on the platform, he said.

However, the company has plans to shift its marketing to Instagram once TikTok is no longer available.

But TikTok’s privacy policy blocks sellers from accessing shopper e-mails, addresses, and other information that could be useful for marketing outside of the platform. Essentially, if TikTok disappears, so do Simply Mandys’ customers, Mr. Greany said.

Other businesses were holding sales and dropping prices to clear out inventory in the event that traffic to their shops would come to an abrupt end on Sunday.

But that was not stopping some influencers from recommending products as they looked to cash out ahead of the ban.

“These TikTok shops are mass ‘clearancing’ their products in anticipation of the ban, so I’m linking some clearance products that I love for skincare,” one user told her 65,000 followers.

Beyond commissions, a TikTok influencer with 10,000 to 100,000 followers can potentially earn $2,000 per brand campaign, according to Lithuania-based influencer marketing agency Billo. For some of TikTok’s top US creators, the entirety of their income will come to a halt, while the major companies they’ve partnered with pivot to other platforms, such as YouTube or Meta’s Instagram.

Oxford Economics said that small- and medium-business-activity on TikTok contributed $24.2 billion, or a small sliver of overall US gross domestic product (GDP) in 2023, while supporting 224,000 jobs. Reuters could not independently verify those estimates.

Yuriy Boykiv, chief executive of e-commerce consultancy Front Row, said his clients made contingency plans to shift their marketing spending to other platforms which have similar short-form videos including Instagram and YouTube.
“Every client has known about this possibility of TikTok going away since April of 2024, so everybody has done some preparation,” Mr. Boykiv said. Front Row’s clients include Procter & Gamble’s haircare brand Ouai and LVMH’s Sephora, according to its website.

“We go where our community is and right now that includes TikTok. If they shift to other platforms in the future, we’ll be right there with them,” Kory Marchisotto, chief marketing officer at e.l.f. Beauty, said in a statement to Reuters.

Mitchell Halliday, the founder and creative director of British beauty brand Made By Mitchell, which launched on TikTok Shop US at the end of August, started selling on TikTok Shop in the UK in 2022 and became the first British beauty brand to hit $1 million in sales in one day on the platform.

“TikTok is the hub of beauty nowadays. It used to be YouTube, then it was Instagram, and now it is TikTok,” Mitchell Halliday said. — Reuters

How PSEi member stocks performed — January 17, 2025

Here’s a quick glance at how PSEi stocks fared on Friday, January 17, 2025.

The Philippines’ 20 Most and Least Profitable Companies in 2023

The 2024 edition of BusinessWorld Top 1000 Corporations in the Philippines contains the country’s largest companies with a combined net income of P2 trillion in 2023. This infographic shows the 20 companies with the best and worst bottom lines in 2023.

The Philippines’ 20 Most and Least Profitable Companies in 2023The BusinessWorld Top 1000 Corporations in the Philippines can be purchased directly by reaching out to BusinessWorld’s Circulation Department at (+63 2) 8527-7777 locals 2651 to 2654 or via e-mail at circ@bworldonline.com. The portable document format (PDF) version will also be available for purchase at https://bworld-x.com/.

Market to remain cautious with Trump in focus

The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

PHILIPPINE SHARES may remain weak this week as market sentiment stays cautious, with US President-elect Donald J. Trump set to take office on Monday and amid the absence of fresh catalysts.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) rose by 1.38% or 86.60 points to 6,352.12, while the broader all shares index increased by 0.76% or 27.95 points to 3,703.73.

However, week on week, the PSEi fell by 2.22% or 144.20 points from its 6,496.32 finish on Jan. 10, marking its second straight weekly decline.

“Local equities tracked regional peers, succumbing to profit-taking ahead of Mr. Trump’s inauguration. Shaky global capital markets were gripped by politico-economic anxiety,” online brokerage firm 2TradeAsia.com said in a market note. “Apart from uncertainties in trade, immigration, and taxation, the overall well-being of the US economy has been sending pain signals to the rest of the globe.”

“The local market has turned more bearish as it extended its decline. At the same time, the market has broken below the 6,400 level, which previously served as a support line,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

The week saw the benchmark index fall to the 6,200 level twice as the release of key US inflation reports caused markets to recalibrate their Federal Reserve policy easing expectations.

On Thursday, the PSEi sank to 6,265.52, which was its lowest close in nearly seven months or since it ended at 6,158.48 on June 21, 2024.

For this week, Mr. Trump’s inauguration will likely be a key source of leads for the market, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“We still expect the cautious atmosphere to remain in the local bourse amid the lack of fresh leads. Investors are expected to wait for new catalysts. Until then, cues are expected to come from other financial markets,” Mr. Tantiangco said.

“We may also see episodes of bargain hunting given that the local market is still at attractive levels, fundamentally speaking,” he added, putting the PSEi’s support at 6,150 and resistance at 6,400.

For its part, 2TradeAsia.com placed the market’s support at 6,000 and resistance at 6,500.

Mr. Trump arrived in the Washington area on Saturday evening for a celebration of his return to power, Reuters reported.

In the Capitol Rotunda, Mr. Trump will be sworn in at 12 p.m. ET (1700 GMT) then deliver an inaugural address, a speech that typically sets the tone for the president’s four-year term. He told NBC News the theme would be “unity and strength, and also the word ‘fairness.’”

Once he returns to the White House on Monday afternoon, Mr. Trump is expected to begin signing dozens of executive orders and directives to crack down on migration, boost US energy production and other priorities. — Revin Mikhael D. Ochave with Reuters

Peso may be range-bound as markets await Trump policies

BW FILE PHOTO

THE PESO may move sideways against the dollar this week as the market awaits US President-elect Donald J. Trump’s inauguration for potential policy pronouncements.

The local unit closed at P58.64 per dollar on Friday, slipping by three centavos from its P58.61 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, the peso likewise depreciated by 28 centavos from its P58.36 finish on Jan. 10.

The peso consolidated against the dollar on Friday before Mr. Trump’s inauguration, a trader said in a phone interview.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message the peso-dollar pair moved sideways as markets await hints on the Trump administration’s policy stance and amid elevated global crude oil prices recently.

Policy comments from US Federal Reserve officials also caused market volatility, he added.

For this week, the trader said the peso will continue to be range-bound as global markets await the start of Mr. Trump’s second term.

The trader sees the peso moving between P58.40 and P58.80 per dollar this week, while Mr. Ricafort said it could range from P58.30 to P58.80.

The dollar held gains against the yen on Friday, but ended the week lower after a six-week winning streak, as investors await Mr. Trump’s presidential inauguration and clarity on the course of the incoming administration’s policies, Reuters reported.

The yen was poised for its strongest weekly performance in over a month as expectations for a Bank of Japan rate hike this week grow, putting the dollar on the back foot.

It climbed more than 1% against the dollar last week and touched a one-month high of 154.98 per dollar earlier on Friday.

The greenback was last up 0.68% against the yen at 156.165.

Remarks from Bank of Japan officials along with Japanese data that point to persistent price pressure and strong wage growth have helped boost market confidence that a rate shift is in the offing, with traders pricing in an 80% chance of a hike this week.

Sources also told Reuters that the central bank is likely to hike rates this week barring any market shocks when Mr. Trump takes office.

The dollar index rose on the day but showed a weekly decline after a six-week winning streak, as investors awaited the inauguration, with hopes for more clarity on policy.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.37% to 109.37.

The dollar has surged in the past few weeks on the back of rising Treasury yields, reflecting expectations that Mr. Trump’s policies could boost inflation when the US economy is already strong.

But bond markets got relief from a relentless selloff after softer US core inflation data on Wednesday, plus remarks from Federal Reserve Governor Christopher Waller on Thursday, who said three or four interest rate cuts were still possible this year if the data supported that.

This led markets to up their bets on Fed cuts this year, putting some pressure on the dollar ahead of Mr. Trump’s return to the White House.

Money markets currently price in about 40 basis points in US rate cuts in 2025.

Investors are now awaiting Mr. Trump’s inauguration speech on Monday to get a better sense of his policy steps and expecting volatility. — AMCS with Reuters

Digital VAT draft regulations to allow 3rd party local reps

SOUVIK BANERJEE-UNSPLASH

THE Bureau of Internal Revenue (BIR) will allow non-resident digital service providers (DSPs) to appoint a local third-party representative to handle administrative matters for them with regard to the value-added tax (VAT) law.

“In registering with the BIR, a nonresident DSP need not have a local representative in the Philippines,” the BIR said in a version of the implementing rules and regulations (IRR) dated Jan. 17.

The 10-page draft IRR previously required an in-country representative upon registering for Republic Act 12023 or the VAT on digital services law.

“However, it may appoint a resident third-party service provider (an individual or entity, such as a law firm, accounting firm, or consultancy firm) for purposes of receiving notices, record keeping, filing of tax returns, and other reporting obligations,” it added.

The nonresident DSP is required to notify the BIR in writing of the designated representative within 30 calendar days from the date of appointment.

For VAT purposes, the appointment of a third-party service provider does not classify the nonresident DSP as a nonresident foreign corporation doing business in the Philippines, according to the draft.

Unregistered non-resident DSPs face suspension of business operations in the Philippines and other penalties, the BIR said.

The Department of Finance (DoF) has said it expects to collect P7.25 billion in 2025 from VAT on DSPs and P21.37 billion in the next year.

The VAT on digital media and advertising is projected to bring the government P102.12 billion in revenue by 2029, a DoF official said.

The VAT scheme is scheduled to go live on March 31. — Aubrey Rose A. Inosante

Finland signals need for tech, healthcare workers

REUTERS

FINLAND’s ageing population has created gaps in its workforce that Filipinos can fill, particularly in technology and healthcare, members of a Finnish delegation said.

“Finland, like most of the European countries, has this challenge that we are an ageing nation. We do not have enough kids coming to the labor market in the future,” Laura Lindeman, senior director and head of Work in Finland, told reporters late Thursday.

“But it is not only that we lack pairs of hands or we have gaps in the labor market, but it is also that international talent bring added value to Finnish companies because they can open connections, and diversity boosts innovation,” she added.

A Finnish delegation led by Finland’s Minister of Employment, Arto Olavi Satonen, visited the country between Jan. 16 and 18.

“We have more than 50 people from Finland. So it is a huge delegation that tells that Finland really sees the Philippines as a very interesting market,” she said.

According to Ms. Lindeman, the specific niches Filipinos can fill include information technology specialists, welders, nurses, caregivers, and restaurant and tourism employees.

By 2040, she said that Finland will need 1.37 million new workers, only part of which will be serviced by Finnish workers.

“On an annual basis, that is about 60,000, and some of that need is met with local labor. The gap is 20,000 per year. So that would be kind of the big picture estimate of the need for international workers,” she added.

The Finnish government is focusing on four countries for international recruitment — the Philippines, Vietnam, India, and Brazil.

Meanwhile, she said that the governments of the Philippines and Finland are discussing how to digitalize migration processes, which may help expedite the recruitment process for Finnish firms.

“We have already agreed on more detailed discussions on how Finland could actually help in digitalize the migration process here because we have learned that it is very time-consuming to work with papers in the process,” she said.

“In Finland, the migration process has been digitalized thoroughly. Almost everything is automated, so hopefully there could be some collaboration,” she added.

Work in Finland has nine private recruitment partners in the Philippines that interested workers can contact. These include IPAMS, Premier Global, Perpetual Help Placement Services, Staffhouse, and GROW, Inc.

During Mr. Satonen’s visit, the Department of Migrant Workers and Finland’s Ministry of Economic Affairs and Employment signed a declaration of intent to ensure Filipino worker safety and ethical deployment.

“That is the first step … I assume that usually the next step is that more negotiations will come out of that and that it might lead to a memorandum of understanding,” Ms. Lindeman said.

According to Mr. Satonen, there were 12,770 Filipino workers in Finland as of 2023 performing healthcare, technology, services, and industrial work. — Justine Irish D. Tabile

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