THE PHILIPPINE bond market’s growth slowed in the second quarter versus the previous three-month period, the Asian Development Bank (ADB) said on Monday.
Outstanding local currency (LCY) bonds grew by 1.3% quarter-on-quarter (q-o-q) to P11.7 trillion or $207 billion in the April-to-June period, slower than the 3.1% expansion seen in the first quarter, the ADB’s Asia Bond Monitor report for September 2023 showed.
The Philippine bond market’s growth was the slowest among the seven markets in the emerging East Asia region that expanded last quarter, with the other three recording contractions. Korea’s bond market posted the fastest quarter-on-quarter growth at 2.6%, while Vietnam’s contracted by 4.5%.
Year on year, the Philippine bond market grew by 8.3%.
“In Q2 2023, total LCY bonds outstanding increased on expansions in both the corporate and government bond markets,” the ADB said.
Treasury and other government bonds grew by 2.3% quarter-on-quarter to $175 billion, accounting for 82.4% of the Philippines’ total outstanding debt stock, as issuances exceeded maturities. This was slower than the 3.4% growth seen in the first quarter.
Meanwhile, central bank securities contracted by 15.8% to $8 billion, reversing the 15.8% increase seen in the first quarter, amid a drop in issuances due to easing inflation. These made up 4% of the total stock.
Lastly, the corporate bond market grew by 1.2% to $29 billion, comprising 13.6% of the total debt stock, “due to the large volume of issuances during the quarter, a reversal from the 2.2% q-o-q contraction in the first quarter of 2023.”
“The Philippine corporate bond market remained dominated by the property, banking, and holding firms sectors, which accounted for a collective share of 81% of total corporate bonds outstanding at the end of Q2 2023,” the ADB said.
Meanwhile, total LCY bond issuance contracted by 19.2% quarter on quarter, it said.
“During the quarter, a contraction of 39% q-o-q in the issuance of Treasury and other government bonds was mainly driven by a relatively high base in the preceding quarter brought about by the Government of the Philippines’ issuance of retail Treasury bonds in February amounting to P283.7 billion.” the ADB said.
“Issuance of central bank securities, which comprised 70.7% of total issuance in Q2 2023, contracted 11.2% q-o-q as inflation continued a downtrend for six consecutive months. After a contraction of 81.7% q-o-q in the first quarter of 2023, corporate bond issuance rebounded in Q2 2023 with an expansion of 117.6% q-o-q due to a relatively low base in the previous quarter,” it added.
Meanwhile, emerging East Asian’s bond market grew by 2% quarter on quarter to $23.15 trillion in the April-to-June period, slower than the 2.2% increase seen in the first quarter.
“Government bonds accounted for 62.0% of the region’s total LCY bond stock at the end of June. Association of Southeast Asian Nations markets comprised a collective share of 9.1% of the regional LCY bond total with aggregate LCY bonds outstanding of $2.1 trillion at the end of June,” the ADB said.
Year on year, the emerging East Asian region’s bond market expanded by 7.9%.
“The risk outlook for regional financial conditions is generally balanced. On the upside, softening inflation in the region has led most regional central banks to move toward the end of their monetary tightening cycles… However, the inflation path remains uncertain. Elevated price pressures together with a robust economic performance and strong job market in the US could support further monetary tightening,” the ADB said.
“On the downside, higher interest rates could challenge regional public and private borrowers with vulnerable balance sheets and weak governance… However, vulnerabilities have been present among both public and private sector borrowers since 2022, due to rising borrowing costs and tightened financial conditions,” it added. — AMCS
South Korean disaster thriller Concrete Utopia, starring Lee Byung-hun, Park Seo-jun, and Park Bo-young, has arrived in Philippine theaters early thanks to sneak previews, including one today, Sept. 12, nationwide. Its regular release in the country starts on Sept. 20. Loosely based on the second part of the hit webtoon Joyful Outcast by Kim Sung-nyung, Concrete Utopia follows survivors who gather in an apartment which is the last remaining building in Seoul in the aftermath of a devastating earthquake. Like with so many contemporary global events, the characters gradually descend into ruthless tribalism. Directed by Um Tae-hwa, the film stars an ensemble which includes Lee Byung-hun, Park Seo-jun, Park Bo-young, Park Ji-hu, Kim Do-yoon and Kim Sun-young. In Korea, it was hailed as a sobering parable and picked by the Korean Film Council to represent South Korea in the selection for Best International Feature Film at the 2024 Academy Awards. Concrete Utopia is distributed in the Philippines by Columbia Pictures.
Singer Nicole Laurel Asensio will release her new single, “Kiss Me Now,” on Sept. 15. The slow, soulful song was written and recorded almost entirely impromptu, with the gliding, powerful vocals backed by textures of gospel influences in the instrumental chord choices and deep tones. The lyrics describe the urgency of finally giving in for a first kiss. “I hopped on a 3 a.m. bus alone to Baguio and booked myself an afternoon session in Openheaven recording studios for the first time,” explained Ms. Asensio in a statement on the song’s creation. “Producer Gabe Dandan was tapering off a Baguio series of gigs and met me at the studio to join in the collaboration. Award-winning producer Shadiel Chan welcomed us into his studio and introduced me to his band.” The track was then sent to Krina Cayabyab who arranged backup vocals performed by jazz group Baihana, with additional vocals from Iwi Laurel, and then to Michael Guevarra who contributed to a synchronized guitar-sax solo from home. The track was finally mastered by recording engineer Angee Rozul and Abbey Road UK by Alex Gordon. “Kiss Me Now” will be available on all digital platforms on Sept. 15.
A collection of 20 critically acclaimed moving images that answer fundamental questions on existence and history will be screened on Sept. 14, 15, and 16 at the Museum of Contemporary Art and Design (MCAD) of the De La Salle-College of Saint Benilde. The “Worlds We Are” selection showcases hybrid documentaries, video essays and diaries, narrative experiments, filmed performances, and archival audio visions that circle around places in or connected to Southeast Asia. The selected works were curated by film scholar, educator, programmer and critic Patrick F. Campos, and will be divided into three sections: SELVES, on subject formation, memory, sense of belonging, and inescapable attachment to home; WORLDS, on the self as simultaneously one and many formed amid communities and catastrophes; and HISTORIES, on the narrative of selves in a long set of motion and recent pasts against violent silencing and erasures. The third day will include a dialogue with Mr. Campos; a talk by cultural worker, writer, and independent curator Lisa Ito-Tapang; and a panel discussion with filmmakers Sari Dalena and Drestel Galang with curator Lara Acuin. The three-day program will be held at MCAD at the Benilde Design + Arts Campus along Dominga St. in Malate, Manila. Slots are available for P300 for all three days of screening. Interested participants may register through https://forms.gle/dpe8qXGJ6s5RMLWP6.
American rap stars Cardi B and Megan Thee Stallion have released “Bongos,” a new song to close out the summer, via Atlantic Records. The accompanying music video , featuring an assortment of dancers surrounding the iconic duo, is directed by Tanu Muino. Also available is a limited-edition CD for the single, arriving alongside the announcement of Cardi B’s historic 12 nominations at this year’s upcoming BET Hip-Hop Awards including Best Hip Hop Video, Best Collaboration, Song of the Year, Lyricist of the Year, and Hip Hop Artist of the Year. Prior to “Bongos,” the pair released the viral sensation “WAP (Feat. Megan Thee Stallion),” which affirmed Cardi B as one of Apple Music’s most popular artists, earning the platform’s highest-ever debut by a female artist. “Bongos” is out now on all digital music platforms worldwide.
On Sept. 22 and 23, the two-day festival September Fever will host a Music Talks and Showcase Festival for its 6th year, shifting its programming towards a more grassroots-leaning, pro-independent music approach. This year’s program will provide an opportunity for budding musicians to learn the ropes of the industry from key resource speakers in the music business. It will be held at From Here and Draft Punk in Cebu City, starting with a forum curated by The Rest Is Noise PH. It will cover music marketing and branding, public relations and media pitching, an artist’s perspective of touring local, and music production. It will include a roundtable discussion on industry-related topics. This will be followed by a mixer with various music industry professionals, with Cebu-based artists Lolita Grey and Franciskoe performing, followed by a DJ set by the Baihaus spinners. The festival’s second day will feature a lineup of Cebuano acts Coloura, Kali Hoods, Tomorrow For Sure, Renzo Sy, Sansette, and Wonggoys. They will be joined by guest acts from all over the Philippines: Aira Casti, KRNA, Loner, One Click Straight, Oh, Flamingo!, The Itchyworms, and DJ Love. For updates, follow September Fever Music Festival on Instagram and Facebook. Visit linktr.ee/septemberfeverfest to secure tickets for the event.
Walt Disney Animation Studios’ films Frozen and Frozen 2 are getting their own dedicated themed land, World of Frozen, which will open in Hong Kong Disneyland on Nov. 20. The Frozen franchise is among the biggest animated films of all time. The theme park will present it as an immersive travel destination with stories, familiar characters, culture, stunning landscapes, music, and cutting-edge technology. It allows guests to celebrate Summer Snow Day and enjoy attractions like Frozen Ever After and Wandering Oaken’s Sliding Sleighs.
R&B singer-songwriter VEDO has released a music video for his new single, “Split.” Offering a glimpse into a breakup-to-makeup kind of love, the visuals accompany an emotionally charged performance. It was directed by AM Visuals, a frequent collaborator of VEDO, produced by Cubeatz and Keyz, and co-written by R.City. “We’ve all at one point thought that it was sexy when your significant other got mad at you, even if they are overreacting. That’s just them letting you know ‘don’t play with me,’ and that’s how we know they actually care,” said VEDO. The release date for his new album will be revealed soon. For now, the single “Split” is available on all digital music platforms.
British singer-songwriter James Arthur has announced that his fifth studio album, Bitter Sweet Love, will be released on Jan. 26, 2024via Columbia Records. Aside from two recently released singles, “Blindside” and “A Year Ago,” the album will have 13 other songs. According to Mr. Arthur, it was a sold-out crowd at a concert singing along to his hits with emotion that inspired the album. The tracks are produced by Steve Solomon, who flew over to Miloco Studios in South London from his home in LA to help produce the album. Mr. Arthur has previously scored four Top 10 albums, with 2016’s Back From The Edge hitting the No. 1 spot. He has 38 million monthly listeners on Spotify alone, with “Say You Won’t Let Go” being his breakthrough hit in the US and officially the UK’s most streamed song in 2016.
Newbie actor and longtime model Derick Lauchengco has signed a management contract with film producer and director Chris Cahilig as part of a fresh “restart” in showbiz. Mr. Lauchengco had previously worked with Mr. Cahilig as a cast member of the popular TikTok series 52 Weeks. He has been on the modeling circuit for a few years, and was named Mister Model Worldwide 2022, a title that led to appearances in film and TV projects as well as commercials. These include supporting roles in the anthology drama series Regal Studios Presents and in the movies Mano Po Legacy: The Family Fortune and Kurdapya. Mr. Cahilig has managed the careers of the P-Pop boy band 1:43, actor Bekimon, radio DJs Nicole Hyala and Christsuper, as well as boyband trio JBK.
RUSSIA’s invasion of Ukraine is a reminder of how autocracies care little about causing death and destruction. The war is a gross violation of human rights and the principle of peaceful settlement of international disputes as codified in the United Nations Charter, which has helped maintain the rules-based international order and kept the world in relative peace since the end of the Cold War.
The war’s humanitarian and economic fallout has also shown that in a globalized world, crises cannot be contained within national borders. It is therefore imperative to deter similar threats to global security from happening elsewhere. Taiwan — a democracy that is home to over 23 million people and that I proudly represent — continues to confront enormous challenges posed by China.
Since the mid-20th century, the People’s Republic of China (PRC) has vowed to take control of Taiwan and refused to renounce the use of force, despite never having ruled Taiwan. For decades, the people of Taiwan have remained calm in safeguarding the status quo of peace and stability across the Taiwan Strait. However, as China’s economic and military might has grown stronger, it becomes increasingly aggressive in flexing its military muscle to intimidate Taiwan, thereby threatening our democratic way of life. This includes sending warplanes and ships across the median line of the Taiwan Strait and encroaching into our air defense identification zones. It has also intensified gray-zone tactics, such as disinformation and economic coercion, in an attempt to wear down our will to fight.
The PRC’s expansionism does not stop at Taiwan. China’s use of gray-zone activities in the East and South China Seas are designed to expand its power and substantiate its hawkish territorial claims. In addition to signing a security agreement with the Solomon Islands in the South Pacific, the PRC has been securing ports for future military use in the Indian Ocean. All of these maneuvers are causing grave concerns that peace is becoming more difficult to maintain.
Ensuring peace and stability in the Taiwan Strait is in everyone’s best interest. Half of the world’s commercial container traffic passes through the Taiwan Strait each day. Taiwan produces the majority of the world’s semiconductors and plays a key role in global supply chains. Any conflict in the area would have disastrous consequences for the global economy.
In recent years, bilateral and multilateral forums have repeatedly emphasized that the peace and stability over the Taiwan Strait is indispensable to global security. While we can all agree that the war must be avoided, how to best do so requires inclusion, dialogue, and, most of all, unity.
The United Nations (UN) remains the best platform for global discourse. UN officials speak often of joint solutions, solidarity, and inclusion in tackling the pressing issues of our time. Taiwan is more than willing and able to take part in these efforts.
However, Taiwan continues to be excluded from the UN due to China’s distortion of UN General Assembly Resolution 2758. This resolution neither states that Taiwan is a part of the PRC nor gives the PRC the right to represent the people of Taiwan in the UN and its specialized agencies. In fact, the resolution only determines who represents the member state China, a fact that the international community and China itself recognized following the relevant vote in 1971. The subsequent misrepresentation of Resolution 2758 contradicts the basic principles upheld by the UN Charter and must be rectified.
The 78th session of the UN General Assembly, which will center on the theme “rebuilding trust and reigniting global solidarity,” is timely in light of a number of broad global challenges. For example, the UN’s Sustainable Development Goals (SDGs) were designed as a shared blueprint for peace and prosperity. Yet the most recent SDG progress report showed that just 12% of SDG targets were on track, while progress on 50% has remained insufficient. And on more than 30%, we have stalled or even regressed.
While there are no easy answers, the first step is dialogue. As a truly global institution, the UN can serve as a champion of progress. We call on the UN to uphold its principle of leaving no one behind by allowing Taiwan to participate in the UN system, rather than excluding it from discussions on issues requiring global cooperation. A good first step would be to allow Taiwanese individuals and journalists to attend or cover relevant meetings, as well as ensure Taiwan’s meaningful participation in meetings and mechanisms regarding the SDGs.
Ukraine’s incredible bravery and resilience have inspired countries around the globe. The war there has forged a new sense of togetherness in the world. Unity is crucial to pushing back against Russia’s aggression and to preserving universal values, such as human rights and global peace, more broadly.
It is vital to make China and other authoritarian governments aware that they will be held accountable and to urge them to settle differences through peaceful means. Allowing Taiwan to meaningfully participate in the UN system would benefit the world’s efforts to address pressing global issues. This would also demonstrate the UN’s determination to unite for global peace at a critical juncture when the future of the world is at stake.
We are stronger together. Now is the time to act on this fundamental principle by including Taiwan.
Jaushieh Joseph Wu is the minister of Foreign Affairs of the Republic of China (Taiwan).
MOROCCO’s deadly earthquake badly damaged one of the most important historical sites in the High Atlas mountains, an earth-and-stone mosque built by a medieval dynasty that conquered North Africa and Spain.
Moroccan media reported that parts of the Tinmel Mosque had collapsed. Photographs circulating online, which Reuters could not immediately verify, showed tumbled walls, a half-fallen tower and large piles of debris.
Responding to a Reuters question about the reported damage to Tinmel, a Moroccan Culture Ministry source said “the ministry has decided to restore it and will make budget for it,” without giving details.
The 12th century mosque was built where the Almohad dynasty established its first capital in a remote Atlas valley before going on to seize Marrakech, proclaim its leader Caliph, and march on across the region propelled by religious zeal.
The United Nations cultural agency UNESCO said it had heard of “very important destructions to the Tinmel Mosque,” which it added had been proposed for listing as a World Heritage site, but added it was still waiting to send a team to assess the damage.
At least 2,000 people have died in the 6.8-magnitude quake, the most destructive in the area since at least 1900. It struck on Friday night, ruining traditional buildings across the High Atlas and collapsing mud-brick and stone houses in many villages seen by Reuters.
The quake also caused damage to the old city of Marrakech, a UNESCO World Heritage site, where a minaret toppled over and parts of the historic city walls collapsed along with some traditional houses.
(Reporting by Zakia Abdennebi in Rabat, Ahmed Eljechtimi in Marrakech and Dominique Vidalon in ParisWriting by Angus McDowallEditing by Frances Kerry) — Reuters
FOREIGN DIRECT INVESTMENT (FDI) net inflows to the Philippines dropped to the lowest in five months in June, as investors worry over slowing economic growth, elevated inflation, and high interest rates. Read the full story.
BEIJING — China’s financial regulator on Sunday reduced the risk weighting it attaches to insurance companies’ holdings of blue-chip shares and tech stocks, encouraging them to invest more in the country’s lagging stock market.
The National Administration of Financial Regulation said on its website that the risk weighting for CSI300 Index constituents would be reduced to 0.3 from 0.35, while that for stocks listed on Shanghai’s tech-focused STAR Market would be cut to 0.4, from 0.45.
A lower risk weighting frees up more capital for insurers to invest.
In addition, the watchdog reduced the risk weighting it assigns to investments in Real Estate Investment Trusts, which in China channel money mainly into infrastructure projects.
It also set a relatively low risk weighting for private equity investments in China’s strategic and emerging sectors.
China has unveiled a slew of measures to boost investor confidence and revive its stock market. They include halving stamp duty on stock trading and slowing the pace of initial public offerings. — Reuters
LOS ANGELES — The final album recorded by late “Margaritaville” singer Jimmy Buffett will be released in November, his record label said on Friday as it released three singles including a collaboration with Paul McCartney called “My Gummie Just Kicked In.”
Buffett cut the record, titled Equal Strain On All Parts, earlier this year before he died from skin cancer on Sept. 1 at age 76. The 14-song album will debut on Nov. 3.
“Gummie,” a celebration of marijuana-laced candy, was inspired by a dinner party attended by Buffett, former Beatle McCartney and their wives, Mailboat Records said in a press release. McCartney wound up playing bass on the track, which Buffett wrote.
Two other singles — “Like My Dog” and “Bubbles Up” — also were released on Friday.
Buffett went from Key West beach bum to billionaire behind the always-on-vacation Margaritaville commercial empire with legions of fans known as Parrotheads. — Reuters
Here’s a quick glance at how PSEi stocks fared on Monday, September 11, 2023.
THE PESO inched down against the dollar on Monday as investors were cautious ahead of the release of August US consumer price index (CPI) data this week.
The local currency closed at P56.69 versus the dollar on Monday, weakening by six centavos from Friday’s P56.63 finish, data from the Bankers Association of the Philippines’ website showed.
The local unit opened Monday’s session flat at P56.63 per dollar. Its intraday best was at P56.53, while its weakest showing was at P56.695 against the greenback.
Dollars traded went down to $1.19 billion on Monday from the $1.62 billion on Friday.
“The peso weakened amid market caution prior to the release of the US consumer inflation report for August 2023,” a trader said in an e-mail.
August US CPI data will be released on Wednesday.
The peso inched down due to signals from the Bangko Sentral ng Pilipinas (BSP) that inflation could return to its 2-4% target in the first quarter next year instead of this year, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
BSP Governor Eli M. Remolona, Jr. last week said he expects inflation to be back within its target range early next year amid lingering price risks.
He added that the BSP could upwardly revise its full-year inflation forecast of 5.6% for 2023 at their Sept. 21 policy meeting.
For Tuesday, the trader said the peso could depreciate further ahead of key US data releases.
The trader sees the peso moving between P56.60 and P56.85 per dollar on Tuesday, while Mr. Ricafort sees it ranging from P56.60 to P56.80. — AMCS
PHILIPPINE SHARES inched up on Monday ahead of the release of August US consumer price index (CPI) data that could affect the US Federal Reserve’s policy decision this month.
The benchmark Philippine Stock Exchange index (PSEi) went up by 10.80 points or 0.17% to end at 6,233.74 on Monday, while the broader all shares index rose by 3.22 points or 0.09% to close at 3,363.45.
“Philippine shares were bought up as investors look to a fresh new batch of economic data that could influence price action activity. For the week ahead in the US, investors are looking forward to key inflation data,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Local stocks moved sideways with no major catalyst to move the market either way. Investors also opted to stay on the sidelines, anticipating the release of US CPI data, which is expected to provide clearer insights into the direction of US monetary policy,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.
August US CPI data will be released on Wednesday.
The US CPI rose 0.2% in July, matching June’s gain. On an annual basis, the CPI advanced by 3.2%.
The US central bank raised borrowing costs by 25 basis points (bps) in July, bringing its target rate to a range between 5.25% and 5.5%.
It has hiked rates by 525 bps since it began its tightening cycle in March last year.
The Federal Open Market Committee will hold its policy meeting on Sept. 19-20.
“Meanwhile, it’s going to be a relatively quiet week for us here in the Philippines. The only economic data due for this week is the remittances [report],” Mr. Limlingan added.
The Bangko Sentral ng Pilipinas (BSP) is scheduled to release July remittance data on Friday.
In June, cash remittances coursed through banks inched up by 2.1% to $2.81 billion from $2.75 billion in the same month last year, BSP data showed.
For the first six months of 2023, cash remittances rose by 2.9% to $15.79 billion.
Sectoral indices were split on Monday. Mining and oil climbed by 188.54 points or 1.87% to 10,266.96; industrials went up by 94.04 points or 1.06% to 8,910.16; and services rose by 4.17 points or 0.27% to 1,538.10.
Meanwhile, financials fell by 5.20 points or 0.29% to 1,788.26; property declined by 2.77 points or 0.1% to 2,586.13; and holding firms dropped by 4.32 points or 0.07% to 5,979.78.
Value turnover went down to P3.62 billion on Monday with 639.89 million shares changing hands from the P3.85 billion with 445.34 million issues seen on Friday.
Decliners outnumbered advancers, 103 to 95, while 41 names closed unchanged.
Net foreign selling rose to P504.93 million on Monday from P347.89 million on Friday.
For this week, Mr. Vistan placed the PSEi’s support at 6,120 and resistance at 6,350. — S.J. Talavera
THE Philippine Economic Zone Authority (PEZA) said it tallied P10.8 billion worth of investment commitments, representing proposed expansions by current locators.
In a statement, the investment promotion agency said that its five-day mission to Tokyo obtained commitments from Terumo Corp. (P1 billion), Taiyo Yuden Co., Ltd. (P1.6 billion), TDK Corp. (P7.2 billion), and Almex Technologies (P1 billion).
PEZA Director General Tereso O. Panga said the planned expansions reflect strong demand for the companies’ products.
“PEZA will make sure that the country will receive these investments, as we have a small window to get (started with) the manufacturing of new high-tech products in the Philippines given the competitiveness of the industry,” he added.
Taiyo Yuden’s investment plan covers 2023 and 2024. Manufacturing company TDK’s first expansion will run between 2023 and 2026, while a second expansion will start in 2024.
The mission, which returned on Sept. 2, included meetings to pursue investment leads. In one case, PEZA met with Sumitomo Corp. and First Philippines Industrial Park, Inc.
PEZA added that it explored collaboration with Tokyo’s Kiraboshi Bank and the Organization for Small & Medium Enterprises and Regional Innovation, known as SME Support.
“Talks with the SME Support led to the possible inclusion of the Philippines in the conduct of CEO Business Meetings that will allow direct linkage between Japanese SMEs and PEZA-registered business enterprises,” PEZA said.
PEZA said the proposed partnership with SME Support will help Japanese SMEs locators meet their staffing needs.
SME Support Senior Director-General Soma Hirohisa said the organization is “looking forward to the possible partnership with PEZA to produce more success stories for Japanese SMEs, similar to those who set up manufacturing facilities in the ecozones to export these products to Japan and other global markets.”
PEZA said it also entered into a memorandum of understanding (MoU) with NEOJAPAN that will allow it to use the latter’s desknet’s NEO and Appsuite, free of charge until the end of 2023.
“The use of these groupware solutions will allow PEZA to digitize, automate, and centralize most of its internal documents and processes under a secure IT environment,” PEZA said.
The MoU will also help PEZA become the first Philippine government agency to use the NEOJAPAN product as a standard operating office system. — Justine Irish D. Tabile
