Archegos’ Bill Hwang sentenced to 18 years in prison for massive US fraud

November 21, 2024 | 5:37 pm

NEW YORK — Former billionaire investor Sung Kook “Bill” Hwang was sentenced to 18 years in prison on Wednesday over the collapse of Archegos Capital Management, which cost Wall Street banks more than $10 billion.

Hwang was sentenced by U.S. District Judge Alvin Hellerstein in Manhattan, where a jury convicted Hwang in July on 10 criminal charges including wire fraud, securities fraud and market manipulation.

“The amount of losses that were caused by your conduct are larger than any other losses I have dealt with,” Hellerstein said before announcing the sentence.

Archegos’ March 2021 implosion took less than a week, stunning Wall Street and Hwang’s lenders.

The U.S. Attorney’s office in Manhattan sought a 21-year prison term for Hwang – unusually long for a white-collar case – and for him to forfeit $12.35 billion and make restitution to victims.

“It stands among a rare class of cases that truly could be described as a national calamity,” prosecutor Andrew Thomas said at the sentencing hearing before Hellerstein.

Hellerstein did not reach a decision on Wednesday on whether Hwang must forfeit money or pay restitution. The sentencing hearing is expected to resume on Thursday.

Before sentencing Hwang, Hellerstein asked the defendant’s lawyer, Dani James, how she thought Hwang compared to Sam Bankman-Fried, who was sentenced in March to 25 years in prison for stealing $8 billion from users of the now-bankrupt FTX exchange.

“Mr. Bankman-Fried was literally stealing from his customers,” James said. “I don’t think that’s what’s happened here.”

Hwang had asked for no prison, forfeiture or restitution, and to remain free on bail while he appealed his conviction. James said his low risk of committing more crimes meant a lengthy prison term served no purpose.

“The notion that he would commit a crime in the future, it’s just not so,” James said.

Bankman-Fried denies wrongdoing and is appealing his conviction.

STARTED AS FAMILY OFFICE
Hwang, 60, was a protege of late hedge-fund billionaire Julian Robertson.

He set up Archegos in New York as a family office in 2013, the year after his former hedge fund Tiger Asia Management pleaded guilty to wire fraud in an insider-trading case.

Prosecutors accused Hwang of lying to banks about Archegos’ portfolio so he could borrow money aggressively and make concentrated bets on media and technology stocks such as ViacomCBS, now called Paramount Global.

While Archegos eventually managed $36 billion, Hwang’s borrowing helped him amass $160 billion of exposure to stocks.

His downfall occurred when Hwang was unable to meet margin calls, as the prices of some of his favorite stocks began falling and various banks unloaded stocks that had backed his so-called total return swaps.

More than $100 billion of market value in Hwang’s stocks was wiped out. Several banks suffered losses, including Credit Suisse, which lost $5.5 billion, and Nomura Holdings. Credit Suisse is now part of UBS.

Hwang’s lawyers’ request for no punishment also cited Hwang’s Christian faith and his nonprofit Grace and Mercy Foundation, which has since 2006 donated at least $600 million to combat homelessness, poverty and human trafficking, among other causes.

In a statement to the court before Hellerstein announced the sentence, Hwang said he hoped the punishment would “allow me to serve as much as I can given the circumstances.”

Hwang’s lawyers have said his net worth has fallen to “at most” $55.3 million.

Hwang’s co-defendant, former Archegos Chief Financial Officer Patrick Halligan, was convicted at the same trial on three criminal charges. His sentencing is scheduled for Jan. 27. Both chose not to testify at their two-month trial. — Reuters

Japan eyes $141 billion of fiscal spending under new stimulus package, NHK says

November 21, 2024 | 11:52 am

Japan-yen-currency — JUN RONG LOO-UNSPLASH

TOKYO – Japan’s government is considering 21.9 trillion yen ($141 billion) worth of fiscal spending under a new stimulus package to be approved this week, public broadcaster NHK said on Thursday.

The overall size of the package, which includes funding from the private sector, would total 39 trillion yen, with 13.9 trillion yen coming from the government general account, NHK reported without citing sources.

Major hurdles over the package were cleared on Wednesday after Japan’s ruling coalition agreed with a key opposition party on the draft of the package designed to help cushion the blow to households from rising prices. – Reuters

US charges five in ‘Scattered Spider’ hacking scheme

November 21, 2024 | 11:47 am

Cybersecurity-hacker — STOCK PHOTO | Image from Freepik

U.S. prosecutors unveiled criminal charges on Wednesday against five alleged members of Scattered Spider, a loose-knit community of hackers suspected of breaking into dozens of U.S. companies to steal confidential information and cryptocurrency.

Martin Estrada, the U.S. Attorney in Los Angeles, said the defendants conducted phishing attacks by sending bogus but real-looking mass text messages to employees’ mobile phones warning that their accounts would be deactivated.

The hackers, in their teens or 20s at the time, allegedly directed employees to links for entering log-in information, enabling the hackers to steal from their employers and millions of dollars of cryptocurrency from individuals’ accounts.

Victims allegedly included at least 12 companies in the gaming, outsourcing, telecommunications and cryptocurrency fields, plus hundreds of thousands of individuals.

Mr. Estrada’s office confirmed that the case concerned Scattered Spider. No victims were identified by name.

Security experts and officials have said Scattered Spider is composed of small clusters of people, including youngsters, who collaborate on-and-off on specific jobs.

The group has been blamed for unusually aggressive cybercrime sprees, targeting major multinational companies as well as individual cryptocurrency investors.

Some experts previously complained about law enforcement’s apparent inability to crack down even though the identities of some suspects, including several living in Western countries, were known, industry insiders told Reuters last year.

That may now be changing.

“The days of easy money and no consequences are over,” said Allison Nixon, chief research officer at cybersecurity company Unit 221B. “Defenders and law enforcement are meeting this wave of cybercrime aggressively now. Young people that have fallen into online crime culture need to exit before they become the next target.”

The defendants are Tyler Buchanan, 22, of Scotland; Ahmed Elbadawy, 23, of College Station, Texas; Joel Evans, 25, of Jacksonville, North Carolina; Evans Osiebo, 20, of Dallas; and Noah Urban, 20, of Palm Coast, Florida.

Each was charged with two conspiracy counts and aggravated identity theft, and Mr. Buchanan was also charged with wire fraud.

Investigators traced Mr. Buchanan through domain registration records for phishing websites, registered under an account whose user name included the name of late actor Bob Saget.

Officials said the suspects’ illegal activity spanned from September 2021 and April 2023.

Scattered Spider drew particular notoriety in September 2023 when members of its community broke into and locked up the networks of casino operators Caesars Entertainment and MGM Resorts International, and demanded hefty ransom payments. Caesars paid about $15 million to restore its network.

It was unclear whether these five defendants were connected with Scattered Spider’s casino hackings.

The U.S. Department of Justice declined to comment on specific victims. Caesars did not immediately return requests for comment. MGM said the defendants did not appear to be related to the cyber attack against its network.

Mr. Evans was arrested on Tuesday in North Carolina. Mr. Urban has pleaded not guilty to 14 fraud and conspiracy charges in a separate case in Florida.

Mr. Buchanan was arrested in June at an airport in Palma de Mallorca, Spain as he attempted to board a flight to Naples, Spanish authorities said at the time. He is awaiting extradition from Spain, a Justice Department spokesman said.

A public defender representing Urban did not immediately respond to a request for comment. Lawyers for the other defendants could not immediately be identified. – Reuters

IMF mission concludes visit to Egypt for the fourth review of loan program

November 21, 2024 | 11:43 am

THE International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S. — REUTERS

CAIRO – The International Monetary Fund said on Wednesday that its mission had concluded a visit to Egypt and made substantial progress on policy discussions toward the completion of the fourth review of IMF loan program.

The review, which could unlock more than $1.2 billion in financing, is the fourth under Egypt’s latest 46-month IMF loan program that was approved in 2022 and expanded to $8 billion this year after an economic crisis marked by high inflation and severe foreign currency shortages.

The IMF also said that Egypt “has implemented key reforms to preserve macroeconomic stability”, including the unification of the exchange rate that eased imports, with its central bank reiterating its commitment to sustain a flexible exchange rate regime.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the program not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement. – Reuters

Senators ask Biden administration to back higher pilot retirement age

November 21, 2024 | 11:41 am

PILOT-cockpit-2576889_1280 — STOCK PHOTO | Image by StockSnap from Pixabay

A bipartisan group of five U.S. senators including incoming Senate Majority Leader John Thune urged President Joe Biden’s administration on Wednesday to back international efforts to raise the mandatory pilot retirement age.

Last year, Congress rejected a push to raise the mandatory airline pilot retirement age to 67 from 65. International rules prevent airline pilots older than 65 from flying in most countries outside the United States.

The group of senators is led by Marsha Blackburn and includes her fellow Republicans Thune and Lindsey Graham as well as Democrat Mark Kelly and independent Joe Manchin.

They urged U.S. Secretary of State Antony Blinken to advocate at the International Civil Aviation Organization, an agency of the United Nations, for hiking the retirement age. They did not suggest a specific age.

“The American public deserves the most qualified and experienced pilots when traveling,” the senators wrote in the letter first reported by Reuters.

The State Department, Federal Aviation Administration and the Air Line Pilots Association did not immediately respond to requests for comment. A group representing major airlines declined to comment.

The senators urged the U.S. mission to ICAO to “not spend this debate sitting on the sidelines. If the United States cedes our leadership role in this space on the international stage, we know that China – who is presently and actively joining our partners to advocate for raising the pilot retirement age – will gladly fill that void.”

The FAA in February asked Congress to give it time to conduct additional research before raising the retirement age. The U.S. House of Representatives had voted 351-69 in July 2023 to approve a sweeping aviation bill that would also raise the mandatory pilot retirement age to 67. But the provision was dropped from the final legislation passed by Congress.

The Air Line Pilots Association has opposed raising the retirement age and said such a move could cause airline scheduling and pilot training issues and also require reopening pilot contract talks.

The U.S. mission to ICAO in Montreal has been without an ambassador since Chesley “Sully” Sullenberger, the commercial airline pilot who safely landed an Airbus A320 on New York’s Hudson River in 2009, stepped down in July 2022. Mr. Biden nominated former Florida Governor Charlie Christ to the post in 2023, but the Senate has not confirmed the appointment. – Reuters

Target shares slide 21% as retailer expects stagnant holiday quarter sales

November 21, 2024 | 11:37 am

1087px-TargetCanada — STOCK PHOTO | By Raysonho @ Open Grid Scheduler / Grid Engine - Own work, CC0, https://commons.wikimedia.org/w/index.php?curid=27421099

Target forecast holiday-quarter comparable sales and profit below estimates on Wednesday as value-conscious consumers shopped for low-priced essentials at rival retailers including Walmart, sending its shares tumbling 21%.

The results are in contrast to the world’s no. 1 retailer Walmart, which raised its annual sales and profit forecast for the third consecutive time a day earlier, as it took market share in groceries and merchandise.

Minneapolis-based Target now expects flat comparable sales in the fourth quarter and a profit of $1.85 to $2.45 per share. Analysts on average had expected a 1.64% rise in sales and profit of $2.66 per share.

The U.S. retailer has cut prices on thousands of essential and gift items ahead of the holiday season. It is also offering discounts on food, beverages and toys, while expanding its private-label brand, Dealworthy, to include items such as smartphone chargers and toiletries.

Still, those efforts have so far failed to attract shoppers to its stores as customers were willing to wait for deals and hunted multiple retailers to find them.

“We’re seeing a strong response to promotions than we’ve seen in some time yet,” Target CEO Brian Cornell said on a post-earnings call.

For instance, Target saw a “more pronounced sales dip” both the week before and a week after its Circle Week event between Oct.6 and Oct. 12 as consumers remained intensely promotion focused.

Apparel sales were soft as warmer-than-usual weather across the U.S. deterred spending on winter clothing, although spending on essentials and beauty was strong during the quarter.

“Things have taken a turn (for Target) in Q3. And it seems that the softness is going to linger into the holiday season as well,” CFRA analyst Arun Sundaram said.

Lingering weakness in higher-margin categories such as home decor, electronics has hurt Target this year, as shoppers watch their budgets in the face of still-high inflation.

“Consumers tell us their budgets remain stretched and they’re shopping carefully … they are becoming increasingly resourceful in their shopping behaviors,” CEO Cornell said.

Rival Walmart on Tuesday said it saw share gains across income cohorts mainly led by households which make more than $100,000 a year.

“With Walmart’s market share gains coming largely from higher income consumers, Target seems to be the one most at risk of losing additional share,” said Citi analyst Paul Lejuez.

With five fewer holiday shopping days between Thanksgiving and Christmas in what is expected to be a so-so holiday season, retailers such as Target face competition as promotions at Walmart and Amazon.com AMZN.O kicked off earlier than usual.

Meanwhile, the company’s efforts to pull forward holiday inventory in preparation for the U.S. ports strike in the East and Gulf Coast led to additional costs in its supply chain, Target’s executives said.

Target said it “acted quickly and decisively to reroute select shipments … that came with additional cost” which hurt its profit in the reported quarter.

“My biggest worry for Target has been market share losses versus some of the more cash-rich companies like Walmart and Amazon, who have a competitive edge,” said Dave Wagner, portfolio manager at Aptus Capital Advisors that holds Target’s shares.

Target also trimmed its annual forecast for per-share earnings to between $8.30 and $8.90 from its prior range of $9 to $9.70 after weaker-than-expected third-quarter results.

The company, which operates nearly 2,000 U.S. stores, reported third-quarter adjusted earnings of $1.85 per share. Analysts on average were expecting $2.30 per share.

Overall, shopper visits rose 2.4% in the three months ended Nov. 2, lower than 3% traffic growth in the prior quarter. Store-originated comparable sales dropped 1.9%, partly offset by a 10.8% jump in digital sales.

It posted a comparable sales increase of 0.3%, well below analysts’ average estimate of 1.4%, according to data compiled by LSEG.

Target’s shares closed down 21.4% at $121.72, marking their biggest intraday percentage fall since May 2022. – Reuters

Golden Haven celebrates the 1^st anniversary of its pet crematorium, announces expansion

November 21, 2024 | 9:02 am

Golden Haven, a leader in memorial care services in the Philippines, celebrated the first anniversary of its pet crematorium this October 2024. Known for providing dignified memorial care to Filipino families, Golden Haven’s comprehensive services include memorial parks, columbariums, chapels, crematoriums, and mortuary services. Expanding into pet cremation, Golden Haven has now brought its compassionate approach to honoring beloved pets, making it the first memorial care provider in the country to venture into pet memorialization.

The pet crematorium journey began at Golden Haven’s flagship branch in Las Piñas, situated along the C5 Road Extension in Global South. As the initial site for this service, it established a warm, respectful environment where pet families could honor their departed fur babies with the same dignity and care that Golden Haven extends to human memorials. Within a year, the service has seen an overwhelming demand, underscoring the essential need for respectful and loving farewells for pets.

Recognizing the importance of pet cremation for Filipino families, Golden Haven is launching new pet crematoriums across the nation by year’s end. This expansion ensures more communities can access these services, making it easier for families to honor their pets without the stress of traveling long distances. “As we celebrate this milestone, we’ve seen how vital it is to support families grieving their pets. Our aim is to provide comfort and closure while honoring pets in a dignified manner,” shares Analyn Anero, Division Head of Golden Haven Chapels and Crematorium.

Golden Haven is the first memorial care provider in the country to venture into pet memorialization, through its Pet Crematorium.

The pet crematorium service also features thoughtful touches, including free pickup within a specific radius, and options for families to hold a viewing for their pets in a comforting, serene space. Pets are gently bathed and prepared with care, providing families a final, loving memory before their beloved pets cross the Rainbow Bridge.

Golden Haven’s seamless service network for pet cremation extends to partnerships with veterinary clinics, pet grooming providers, and pet accessory shops, creating a supportive community for pet parents. In line with its dedication to responsible pet parenting, Golden Haven even organizes an annual “Pawsome Day” event, celebrating the bond between families and pets — a tradition established even before launching its pet crematorium services.

In its commitment to compassionate service, Golden Haven also facilitates the donation of items left by fur parents, redistributing these belongings to animal welfare organizations. This thoughtful initiative, combined with affordable service options, underscores Golden Haven’s mission to support pet families across every step of their journey.

Golden Haven’s holistic approach to memorial care for both people and pets, combined with its continuous drive for innovation, further solidifies its status as the leader in the industry — a position that has earned it the title of the “Gold Standard in Memorial Care.” For more information about Golden Haven’s pet cremation services and other offerings, please visit www.goldenhaven.com.ph, reach out via social media, or contact 0999-886-4176 / 0919-079-0205.

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BoP position swings to deficit in Oct.

November 21, 2024 | 12:35 am

dollar currency — US one-hundred-dollar notes are seen in this picture illustration taken in Seoul Feb. 7, 2011. — REUTERS

By Luisa Maria Jacinta C. Jocson, Reporter

THE COUNTRY posted a balance of payments (BoP) deficit of $724 million in October as the government repaid external debt, the Bangko Sentral ng Pilipinas (BSP) said.

This was a reversal of the $1.51-billion surplus a year ago and $3.526-billion surfeit in September.

“The BoP deficit in October 2024 reflected the National Government’s (NG) net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures,” the BSP said in a statement.

The BoP summarizes the country’s transactions with the rest of the world. A deficit means more funds left the country, while a surplus shows that more money came in.

Latest data from the Bureau of the Treasury (BTr) showed that the NG’s outstanding debt rose to a record-high P15.89 trillion as of end-September.

The bulk (68.81%) of the debt stock came from domestic sources while the remainder was from foreign creditors.

External debt rose by 9.3% to P4.96 trillion at end-September from a year ago.

Central bank data showed the BoP reflected a final gross international reserve (GIR) level of $111.1 billion as of end-October, down from $112.7 billion a month earlier.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said that despite the decline, the reserve level has been above the $100-billion mark for over a year or 13 straight months.

“Still a relatively high GIR, the second highest on record, partly due to net income from the BSP’s foreign investments amid gains in most global financial markets recently on market expectations on the series of Fed rate cuts from 2024-2026,” he added.

The US Federal Reserve began its rate-cutting cycle in September with a half-percentage-point reduction and delivered another quarter of a percentage-point cut earlier this month.

Markets are anticipating another quarter-point rate cut at its last meeting for the year in December.

Data from the central bank showed the dollar buffer was enough to cover 4.4 times the country’s short-term external debt based on residual maturity.

It was also equivalent to eight months’ worth of imports of goods and payments of services and primary income.

An ample level of foreign exchange buffers safeguards an economy from market volatility and is an assurance of the country’s capability to pay debts in the event of an economic downturn.

Mr. Ricafort said the deficit position in October was due to the country’s continued trade deficit.

The Philippines’ trade-in-goods balance stood at a $5.09-billion deficit in September, the widest in 20 months.

The country’s balance of trade in goods has been in the red for over nine years since the $64.95-million surplus recorded in May 2015.

Mr. Ricafort also noted volatility due to geopolitical risks and markets pricing in the incoming Trump administration’s restrictive trade policies.

10-MONTH SURPLUS
Meanwhile, the country’s BoP position registered a $4.393-billion surplus in the 10-month period, widening from the $3.246-billion surplus a year ago.

“The surplus reflected in part the continued net inflows from personal remittances, trade in services, and net foreign borrowings by the NG,” the central bank said.

“Furthermore, net foreign direct and portfolio investments contributed to the BoP surplus,” it added.

Latest data from the BSP showed foreign direct investment (FDI) net inflows rose by 3.9% year on year to $6.07 billion in the first eight months.

Meanwhile, foreign portfolio investments yielded a net inflow of $3.02 billion in the January-September period, significantly higher than the $387.24-million inflow last year.

“For the coming months, the BoP data could improve, thereby could also lead to better GIR, partly due to the proceeds of the National Government’s foreign currency-denominated borrowings from both commercial sources that would also be added to the country’s BoP and GIR,” Mr. Ricafort said.

He also noted continued growth in overseas Filipino worker remittances, business process outsourcing revenues, exports and foreign tourism receipts.

“Going forward, any improvement in BoP data and in GIR data for the coming months could still help provide a greater cushion for the peso exchange rate (against) the US dollar especially versus any speculative attacks, as well as help strengthen the country’s external position,” he added.

The BSP expects a $2.3-billion BoP surplus by yearend, equivalent to 0.5% of economic output.

Inflationary pressures may prompt pause in December — Remolona

November 21, 2024 | 12:34 am

grocery-worker — A store attendant checks the canned goods display inside a grocery in Quezon City, Oct. 19, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

INFLATIONARY PRESSURES could prompt the Philippine central bank to pause its easing cycle, but a slowdown in growth may leave room for another rate cut, its governor said on Wednesday.

“Inflation pressures may cause us maybe to pause a bit, but weak growth may cause us to cut,” Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. told reporters on the sidelines of an event on Wednesday.

Depending on the data, he said the Monetary Board may cut or pause at its Dec. 19 meeting.

This year, the BSP has delivered a total of 50 basis points (bps) worth of rate cuts in increments of 25-bp reductions at its August and October meetings.

“Based on our readings, there are still pressures on inflation, and the economy is also a bit weak as seen in the third quarter number,” he said in mixed English and Filipino.

Philippine gross domestic product (GDP) slowed to 5.2% in the July-to-September period from 6.4% in the second quarter and 6% a year ago.

This was also the weakest growth since the 4.3% expansion in the second quarter of last year.

In the first nine months, GDP grew by 5.8%. The economy would need to grow by at least 6.5% in the fourth quarter to meet the lower end of the government’s 6-7% target.

Mr. Remolona said November inflation is likely to remain within the 2-4% target band based on the BSP’s latest projections.

Headline inflation picked up to 2.3% in October, bringing the 10-month average to 3.3%.

The BSP’s baseline forecasts see inflation settling at 3.1% this year, 3.2% in 2025 and 3.4% in 2026.

The central bank also earlier said the balance of risks to the inflation outlook for 2025 and 2026 shifted to the upside but will likely continue to remain within target.

BSP Assistant Governor Zeno R. Abenoja said that November inflation may reflect the typhoon damage in October, but the impact from the multiple storms that hit the country in November will likely be reflected in December inflation data.

“Based on the Department of Agriculture (DA), they estimated that about 70% of the harvest was done when the typhoons started coming in, the last four typhoons,” he said.

“Hopefully, the impact will be limited, but it’s the next cycle that may be affected,” he added.

Latest data from the DA showed that the combined agriculture damage due to tropical cyclones Kristine and Leon, which made landfall in the country in late October, reached P9.81 billion.

Meanwhile, the BSP chief said that the peso’s performance is not a factor that the central bank considers in its monetary policy decisions.

“Usually, they’re different, the exchange rate and the policy rate. We don’t use the policy rate to control the exchange rate. That’s a different matter,” Mr. Remolona said.

The peso has been recently trading at the P58-per-dollar range, teetering closer to the P59 level.

Mr. Remolona earlier said he is not worried about the peso’s weakness, though the central bank has been intervening in “small amounts” following the peso depreciation amid the announcement of Donald J. Trump’s election as US President.

Peso slides to over two-year low

November 21, 2024 | 12:33 am

THE PESO sank to an over two-year low on Wednesday amid escalation in the Russia-Ukraine war as well as further signals on US President-elect Donald J. Trump’s economic policies.

The local unit closed at P58.91 per dollar on Wednesday, weakening by 10 centavos from its P58.81 finish on Tuesday, Bankers Association of the Philippines data showed.

This was the peso’s weakest close in 25 months or since its P58.94 close on Oct. 20, 2022.

The peso opened the session at P58.80 against the dollar with its intraday best at P58.77. Meanwhile, it dropped to as low as P58.925 versus the greenback.

Dollars exchanged went down to $1.096 billion on Wednesday from $1.473 billion on Tuesday.

The first trader said in a phone call that the peso slipped amid an escalation in the Russia-Ukraine war.

“The US dollar-peso exchange rate is also higher amid some geopolitical risks related to the Russia-Ukraine war lately,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Reuters reported that Russian President Vladimir Putin on Tuesday lowered the threshold for a nuclear strike in response to a broader range of conventional attacks, days after reports said Washington had allowed Ukraine to use US-made weapons to strike deep into Russia.

Ukraine used United States-made Army Tactical Missile System (ATACMS) missiles to strike Russian territory on Tuesday. However, Moscow said the use of ATACMS, the longest-range missiles Washington has supplied to Ukraine so far, was a clear signal the West wanted to escalate the conflict.

The second trader in an e-mail said that the peso depreciated after reports that Mr. Trump has narrowed his choice for Treasury secretary.

Bloomberg News reported Mr. Trump was set to interview former Federal Reserve Governor Kevin Warsh and Apollo Global Management Chief Executive Officer Marc Rowan for the post of Treasury secretary.

“However, (Mr. Warsh’s) previous experience in the Fed might give him an edge over other candidates for the position… his pick is widely viewed as supportive of his alternative approach to the US central bank, falling in line with the US economic plans by Trump,” the trader said.

Mr. Ricafort also noted the latest balance of payments (BoP) data, which posted a deficit position.

The country posted a BoP deficit of $724 million in October, a reversal of the $1.51-billion surplus a year ago and $3.526-billion surfeit in September, latest central bank data showed.

The second trader said the peso may stay close to the P59-per-dollar level in the near term.

“The peso is likely to remain elevated near the P59 level as growing geopolitical concerns and uncertainties on Trump policies continue to drive demand for the greenback,” the second trader said.

In October 2022, the peso hit a record low of P59 against the dollar, which led to inflationary pressures and prompted the central bank to intervene.

BSP Governor Eli M. Remolona, Jr. has said that the peso’s recent weakness is not a cause for concern as it was expected that the dollar strengthened after Mr. Trump was elected US President.

However, he said that the central bank has had to intervene in “small amounts.”

For Thursday, the first trader expects the peso to move between P58.60 and P58.95 while the second trader sees the peso trading from P58.75 to P59.

Meanwhile, Mr. Ricafort expects it to range from P58.75 to P58.95. — L.M.J.C.Jocson

PEZA approvals hit P186B as of mid-Nov.

November 21, 2024 | 12:32 am

worker-electronics-manufacturing — REUTERS

THE PHILIPPINE Economic Zone Authority (PEZA) has greenlit P186.098 billion in investment pledges as of Nov. 13, surpassing the total approvals in 2023.

This was 32.1% higher than the P140.884 billion worth of investments it approved in the same period in 2023.

In a board meeting on Nov. 13, the PEZA Board approved 24 new and expansion projects worth P62.341 billion, which are expected to generate $300 million in exports and 20,000 jobs.

The recent approvals comprise 12 projects in export activities, six projects in information technology services, two domestic market-oriented projects, a facilities, logistics and utilities project, and an economic zone development.

This brought PEZA’s total number of projects approved this year to 222, which are expected to generate $3 billion in exports and 60,000 jobs.

“Surpassing the previous year’s investment acquisition performance is a clear sign of the confidence of both international and local investors in our current economy and policies as charted by President Ferdinand R. Marcos, Jr.,” said PEZA Director-General Tereso O. Panga.

“Similar to last year, we are poised to meet the projected investment and expansion target we have set at P200 billion as we close this year,” he added.

According to PEZA, it is leveraging the recently signed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to attract more investments.

“(The law) further enhances our attractiveness to investors and positions the Philippines as a top investment choice not only in Asia but around the globe,” said Mr. Panga.

President Ferdinand R. Marcos, Jr. earlier this month signed into law the CREATE MORE Act, which reduces to 20% the corporate income tax for business enterprises registered with investment promotion agencies

“The CREATE MORE Act empowers PEZA and its mandate to support foreign direct investment-driven exports, job creation, and sustainable economic growth, helping build a globally competitive and inclusive Philippines,” Mr. Panga said.

According to PEZA, the recent approvals include four big-ticket locator projects, which have a combined investment of P60.248 billion.

Elmer Francisco Motors Corp. is planning to invest over P50 billion to manufacture and assemble electric vehicles (EVs), parts, and components in Camarines Norte.

“This project is seen to support the government’s initiatives to increase the utilization of EVs in the domestic market and make the Philippines a part of the global chain of EVs,” PEZA said.

Meanwhile, a domestic market enterprise and an export enterprise are investing over P3 billion in a liquid fuel depot in Cebu and the manufacturing hub of additional vehicle parts and components in Batangas.

A Filipino-owned developer is also investing P4 billion in a new economic zone development in Concepcion, Tarlac.

“By providing critical infrastructure and support, the development aims to attract more businesses, boost local economic activity, and strengthen Tarlac’s growing role as a hub for industrial and commercial enterprises,” PEZA said.

“This approval also marks a crucial step toward expanding regional investment opportunities and contributing to the country’s broader economic goals,” it added. — Justine Irish D. Tabile

BusinessWorld Forecast 2025 to explore PHL’s path towards steady growth

November 21, 2024 | 12:31 am

BWF25-Speakers-Composite — (L-R) FINANCE UNDERSECRETARY and Chief Economist Domini S. Velasquez; Zafer Mustafaoglu, country director for the Philippines, Malaysia, and Brunei at the World Bank; Pavit Ramachandran, country director for the Philippines at the Asian Development Bank; and Tourism Secretary Ma. Esperanza Christina G. Frasco

(L-R) FINANCE UNDERSECRETARY and Chief Economist Domini S. Velasquez; Zafer Mustafaoglu, country director for the Philippines, Malaysia, and Brunei at the World Bank; Pavit Ramachandran, country director for the Philippines at the Asian Development Bank; and Tourism Secretary Ma. Esperanza Christina G. Frasco

THE PHILIPPINES is still poised to become one of the fastest-growing economies in Southeast Asia next year, but it faces challenges in maintaining the momentum.

BusinessWorld Forecast 2025, “PH Forward: Towards A Sustained Growth Path,” will once again gather the Philippine business community to discuss the outlook for the economy, as well as challenges and trends that can impact growth.

The forum will feature a keynote speech by Finance Undersecretary and Chief Economist Domini S. Velasquez on the “Outlook and Agenda for the Philippine Economy in 2025.” She will discuss the country’s growth prospects and how momentum can be sustained amid global challenges and uncertainties.

Zafer Mustafaoglu, country director for the Philippines, Malaysia, and Brunei at the World Bank, will also deliver a keynote on “Propelling the Philippines towards Excellence in the Global Market.”

Pavit Ramachandran, country director for the Philippines at the Asian Development Bank (ADB), will discuss the topic “Sustaining Philippines’ Growth in Stabilizing Global Economy” in a video message.

These keynotes will be complemented with a presentation by McKinsey & Co. Manila Managing Partner Jon Canto on his investment outlook for the Philippines for 2025.

The forum also features several panel discussions on key issues facing the Philippine economy.

The first panel, “Gearing the Investment Space for Sustained Economic Growth,” will feature top executives who will discuss the next steps to boost investments in the country. Speakers for this panel are George S. Uy-Tioco, Jr., chief financial officer of GT Capital Holdings, Inc.; Cosette Canilao, president and chief executive officer (CEO) of Aboitiz InfraCapital Inc.; Maria Carmela Laarni G. Felicidario, chief operating officer at Global Dominion Financing, Inc.; Erwin G. Pato, executive vice-president for treasury, finance, and planning at SM Investments Corp.; and Alberto De Larrazabal, senior managing director, chief finance, and finance group head at Ayala Corp.; and Mr. Canto of McKinsey.

The second panel, “Infrastructure, Mobility, and Real Estate: Pillars of Long-Term Economic Growth,” will explore how these industries are paving the way for long-term growth and development in the Philippines. Sharing their insights are Jamie Alfonso Zobel De Ayala, chief executive officer of AC Mobility; Jean-Baptiste Dreanic, deputy general manager of Engie Services Philippines; and Roderick Danao, chairman and senior partner of PwC Philippines.

Tourism Secretary Christina Garcia Frasco will discuss the topic “Philippine Tourism: Maximizing Present Gains and Building its Sustainable Future” in her fireside chat.

A panel discussion on “Keeping Retail’s Pace with Consumers’ Changing Ways” will highlight the latest shifts in the consumer market and the strategies to serve consumers better. It will feature Vicky Abad, managing director at Ipsos Philippines Inc.; Sherisa Nuesa, chairperson at Metro Retail Stores Group, Inc.; and Jennifer Echevarria, vice-president for enterprise data and strategic services at Globe Telecom.

The panel on “Supercharging Philippine Businesses and Workforces in the AI Age” will discuss artificial intelligence’s impact on companies. It will feature Peter Maquera, president and CEO of Microsoft Philippines; Pia Azarcon, managing partner for consulting at IBM Philippines; Gian Paulo Dela Rama, chief product officer of Sprouts Solutions and head of Sprout AI Labs; and Dominic Ligot, founder, CEO, and CTO of Cirrolytix.

Dr. Jesus Felipe, distinguished professor at the De Le Salle University Carlos L. Tiu School of Economics, will talk about “Priming Philippine Economy’s Growth Through Timely Policies” in a fireside chat.

Anthony Oundjian, managing director and senior partner at Boston Consulting Group, will share his insights on the topic: “Managing the Generational Divide in the Workplace.”

The forum will be hosted by TV5 News Anchor Jester Delos Santos. Sessions will be moderated by BusinessWorld journalists — Editor-in-Chief Cathy Rose A. Garcia, Corporate News Editor Arjay L. Balinbin, Research Head Mark T. Amoguis, Reporters Luisa Maria Jacinta C. Jocson and Revin Mikhael D. Ochave, and Multimedia Producer Patricia B. Mirasol.

BusinessWorld Forecast 2025 is supported by gold sponsors Ayala Corp., Federal Land NRE Global, Megaworld Corp., SM Investments Corp., and SM Supermalls; silver sponsors are BDO Unibank, Inc., Engie Services Philippines, Global Dominion Financing, Inc., Globe Telecom, Inc., and San Miguel Corp.; bronze sponsors are FWD Insurance, Manila Electric Company, Metropolitan Bank & Trust Co., National Grid Corp. of the Philippines, SGV & Co., Shang Properties, Standard Chartered Bank, Gokongwei Group and Megawide Construction Corp.; partner organizations are Asian Consulting Group; American Chamber of Commerce of the Philippines; Bank Marketing Association of the Philippines; British Chamber of Commerce of the Philippines; Management Association of the Philippines; Philippine Chamber of Commerce and Industry; Philippine Franchise Association; and Philippine Retailers Association; and media partners One News and The Philippine STAR.