Facebook Instagram Linkedin X Youtube
Home Blog Page 2904

UnionBank posts P3.1-B net income for Q2

BW FILE PHOTO

UNION BANK of the Philippines, Inc. (UnionBank) booked a net income of P3.1 billion in the second quarter amid strong revenues, it said on Monday.

This was 55% higher than the P2-billion net profit it posted in the first quarter, UnionBank said in a disclosure to the stock exchange.

However, this was below the P3 billion in attributable net earnings that it recorded in the second quarter of 2023, based on its quarterly report for that period.

Its latest financial statement was unavailable as of press time.

“We continue to post strong topline revenues. Now that we have completed the integration of the acquired Citi consumer business, the parent bank’s expenses have naturally declined. As a result, our net income in the second quarter of the year is at P3.1 billion, which is up by more than 50% from the P2 billion booked in the previous quarter. Our focus on the higher margin consumer segment and continued expansion of our customer base will allow us to sustain this growth momentum in the years to come,” UnionBank Chief Financial Officer Manuel R. Lozano said.

UnionBank’s acquisition of Citigroup, Inc.’s Philippine consumer banking business was completed in August 2022. The transaction was valued at P55 billion.

The bank’s second-quarter performance brought its net income for the first half to P5.07 billion.

This was likewise lower than the P6.34-billion attributable net profit it recorded in the same period last year.

UnionBank said its revenues grew by 8.3% year on year to P37.3 billion in the first semester.

“The growth in net revenues is driven by the bank’s expanding consumer business, higher net interest margin, and growing transaction fees,” it said.

Net interest income also increased by 14.8% to P27.497 billion in the first half. Interest earnings stood at P40.876 billion, while interest expenses totaled P13.379 billion.

The bank’s net interest margin improved by 55 basis points to 5.7%, it said.

“The bank’s net interest margin is among the highest in the banking industry at 5.7% coming from the higher proportion of consumer loans to total loans. Consumer loans now account for 59% of its total loan portfolio, which is nearly three times higher than the industry average,” UnionBank said.

Non-interest income stood at P9.814 billion.

Meanwhile, the lender’s operating expenses inched down by 2.4% year on year to P21.568 billion as of June.

“Following the successful migration of the acquired Citi consumer business into UnionBank’s system in March, the bank’s IT (information technology) expenses have declined by close to P1 billion quarter-on-quarter,” it said.

“The decline in IT expenses was partly offset by inherent costs related to customer acquisition and revenue growth. New-to-bank customers more than doubled versus last year’s monthly average. As a result, the bank now has over 15 million total customers,” UnionBank added.

Provisions for credit losses amounted to P8.988 billion in the first semester.

The bank’s net loans and other receivables stood at P514.77 billion in the first half.

On the funding side, total deposits stood at P666.05 billion. Its low-cost current account, savings account or CASA deposits were at P427.8 billion.

UnionBank’s assets were at P1.1 trillion at end-June, while total capital was at P187.14 billion.

The bank’s shares went down by five centavos or 0.14% to end at P36.05 apiece on Monday. — AMCS

Phase 1 of PHINMA’s Bacolod township to finish by next year

PHINMA Property Holdings Corp. (PHINMA Properties) said it is developing a P12-billion township in Bacolod City.

The project, named “Saludad,” which means “to say hello” or “to greet,” aims to address the increasing housing demand driven by the city’s booming economy, the company said in an e-mailed statement last week. 

“Located at the heart of Bacolod City, Negros Occidental, Saludad is a 21-hectare community that will offer residents a distinctive and enhanced living experience that captures the essence of Bacolod’s unique charm and potential,” PHINMA Properties said.

The company recently held the groundbreaking for Saludad. The first phase, starting this year, is set for completion by December 2025, with the second phase beginning in January 2026 and finishing by 2028. 

The entire project is expected to be completed by 2039, according to Paolo V. Reyes, vice-president and chief township officer.

“As a mixed-use township, it is poised to be a catalyst for local economic development by creating commercial spaces and a retail center that attract investors and entrepreneurs, generating new jobs and opportunities, and cultivating an environment where businesses can flourish. With this, a new central business district can also potentially emerge within Bacolod through the township,”the company said.

The company also noted that the township will include neighborhoods with open spaces, fitness areas, and communal zones for families. It will feature a retail town center and venues for cultural, entertainment, and sporting events to enhance lifestyle and boost economic opportunities in the city.

In the planning of Saludad, PHINMA Properties emphasized Bacolod’s authentic culture and its residents’ appreciation for open spaces and greenery, according to Mr. Reyes.

“What you will visibly see right away would be the first phase at the southern portion of the property that includes the hotel development and commercial lots as well as our mid-rise buildings,” he added.

The township will showcase Modern-Filipino architecture, designed by architectural firm Royal Pineda, he noted.

The company said it collaborated with JEPP Real Estate Co., Inc. on this flagship project, aiming to create a development that aligns with the city’s character and its residents.

“JEPP Corp.’s profound understanding of Bacolod’s local landscape and commitment to the city’s welfare aligns perfectly with our mission to enrich the communities we serve,” said Raphael B. Felix, president and chief executive officer of PHINMA Properties. — Sheldeen Joy Talavera

On unprogrammed appropriations and Secretary Ralph Recto

The use of the idle funds of some government-owned and -controlled corporations (GOCCs) like PhilHealth to fund the Unprogrammed Appropriations of the budget law, the General Appropriations Act (GAA), has become a big issue recently.

See for instance, see these “Yellow Pad” columns in BusinessWorld: “Maharlika 2: This time, PhilHealth members are the victims” (July 1), “The P89.9 billion taken from PhilHealth are member contributions, not government subsidies” (July 22), “Lame arguments to justify the transfer of PhilHealth funds” (July 29).

From the “Demand and Supply” column in the Philippine Star: “Unhealthy mess” (July 17) and “Shameless, Sec Ralph!” (July 24). And from “Gotcha” column also in the Philippine Star: “Now they’re stealing our PhilHealth contributions” (July 17), “Don’t tempt a tax boycott, you PhilHealth thieves” (July 19).

The immediate trigger for all this was a press statement from July 15, “Statement of the Department of Finance Mobilizing Unused GOCC Funds for Public Programs.” The Department of Finance (DoF) argued that “Unlocking these excess fund balances is a more prudent fiscal option than borrowing more or imposing taxes. The move does not affect the viability of participating corporations. It does not impair their delivery of services.” It cited the Philippine Health Insurance Corp. (PhilHealth) as having “a P500 billion benefit chest, which can fund multiple-year claims.”

I reviewed the country’s overall fiscal condition, both actual and projected. I believe the DoF is correct and the detractors are wrong, on using the idle funds of GOCCs like PhilHealth.

The programmed appropriations, our expenditures, are so many that current and future revenues will not be able to catch up resulting in a huge budget deficit, which in turn results in huge financing and borrowings to plug the deficit, and consequently huge interest payments that add more pressure on expenditures.

For instance, in the first half of 2024 our interest payment was already P377 billion, likely to reach P750 billion full year 2024 vs. projected interest payments of P670 billion under the Budget of Expenditures and Sources of Financing (BESF) 2024 submitted by the Budget department to Congress in August 2023.

The latest update by the Development Budget Coordination Committee shows that budget deficit for 2024 and 2025 would be at the 2023 level of P1.5 trillion, much higher than BESF projections (see Table 1).

If people can be vehement in opposing certain revenue measures to plug the deficit, they should have been equally vehement in opposing certain expenditures in the programmed appropriations that are contributors to uncontrolled deficit that leads to uncontrolled borrowings, that lead to rising Unprogrammed Appropriations. But this is not happening.

It is precisely because programmed appropriations are already bloated with lots of spending unsupported by projected revenues that Unprogrammed Appropriations were invented and are rising. From the original Malacañang proposal of P282 billion for Unprogrammed Appropriations, it went up to P731 billion after the bicameral conference committee meetings in December 2023 that became the GAA 2024.

The article “Shameless, Sec Ralph!” was particularly strongly worded, including its accusation of “the Great Health Fund Robbery by the BBM administration.” It further argued that “Congress literally robbed the Filipinos of scarce health funds so pork barrel wish lists can be funded.”

I checked the Unprogrammed Appropriations in GAA 2024, also GAA 2023. Here are two things I discovered.

One, out of the P731 billion in Unprogrammed Appropriations for 2024, the potential Congress pork barrel fund would be P225 billion on “Strengthening assistance for government infrastructure and social programs.” The rest, or P506 billion, is earmarked for foreign-assisted projects (FAPs), the Philippines’ counterpart funds, social programs for health and education, etc.

Two, the Unprogrammed Appropriations in 2024 of P731 billion was even lower than that in 2023 of P807 billion (see Table 2).

Among the FAPs are the Metro Manila Subway Project, the North-South Commuter Railway System, the PNR South Long-Haul Project, the Support to Parcelization of Lands for Individual Titling (SPLIT) Project, the MRT Line 4 Project, and the Cebu Bus Rapid Transit Project, etc.

So these important infrastructure projects can no longer be accommodated in the programmed appropriations otherwise the programmed deficit will hover near P2 trillion this year alone. These were moved to Unprogrammed Appropriations and the DoF has correctly identified the use of idle funds of GOCCs, including PhilHealth and Philippine Deposit Insurance Corp. (PDIC), both of which can contribute P200 billion to fund some, but not all, of the P731 billion in Unprogrammed Appropriations.

On July 30, Finance Secretary Ralph G. Recto spoke at the Senate and among the myths and fake news by the detractors that he debunked were the following:

One, that the idle GOCC funds are to be used for the Maharlika Investment Fund. The Maharlika Fund has zero relation on this, it is purely about funding some of the Unprogrammed Appropriations.

Two, that they should refund the P90 billion of PhilHealth reserves now. He clarified that so far only P20 billion, not P90 billion, has been remitted to the National Treasury.

Three, that PhilHealth will go bankrupt and members’ contributions will be tapped. PhilHealth has a P500 billion benefit chest fund. I know that a substantial portion of this does not come from members’ contributions but from alcohol and tobacco tax collections.

Four, that PhilHealth benefits to members will be reduced. The PhilHealth officials themselves assured that not a single centavo will be reduced from programmed benefits.

Five, that the DoF scheme is arbitrary and has no legal basis. Mr. Recto said the legal basis behind this is GAA 2024 or RA 11975, and there is no automatic implementation using the idle funds, it has to go through strict review by the Office of Government Corporate Counsel (OGCC).

Mr. Recto is a credible gentleman, an honorable and highly learned official who knows the numbers better than the detractors. He and the DoF are unjustly vilified for the mistakes of many agencies, departments, and subsidy-seeking dependents and lobbyists who cannot control their itch for more funding and subsidies yearly. The DoF is forced by these agencies and lobbyists to look for funds to satisfy the itch for endless spending.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Investing in additional large dams may improve flood control — analysts

Aerial shots show floodwater entering the Upper Wawa Dam reservoir and how the dam's controlled impoundment managed flooding caused by Super Typhoon Carina. — PHOTOS WERE PROVIDED BY WAWAJVCO.

By Sheldeen Joy Talavera, Reporter

INVESTING in additional large dams may significantly improve flood control and water supply management, according to some analysts, who also emphasized the importance of addressing environmental impacts.

“Succeeding projects will, of course, depend on need and available funding, but they should be based on the most effective intervention for current conditions,” InfraWatch PH Convenor Terry L. Ridon said in a Viber message on Monday.

He cited insights from the National Irrigation Administration and the Department of Public Works and Highways, which mentioned the need for high dams to control the flow of water from upland to low-lying areas.

“We support this view, as long as the environmental and social impacts of future dam projects are addressed,” he said.

Mr. Ridon said that environmental and social impacts should be addressed in all projects located in environmentally critical areas.

“Government and private sector partners must ensure full compliance with existing environmental and social regulations,” he said.

In a statement on Sunday, Wawa JVCo, Inc. said that the Wawa Bulk Water Supply Project was cited by government officials for helping alleviate flooding caused by Super Typhoon Carina (international name: Gaemi).

Wawa JVCo, a joint venture company between Prime Infrastructure Capital, Inc. and San Lorenzo Ruiz Builders and Developers Group, is the developer and operator of the Wawa Bulk Water Supply Project.

“While designed as a water supply dam, the project can also help mitigate flooding in downstream communities, particularly low-lying areas in Rizal province and the eastern district of Metro Manila,” the company said.

In a situation briefing led by President Ferdinand R. Marcos, Jr. last week, Rizal Governor Niña Ynares said that the flooding in certain areas of the province “could have been significantly worse” without the Upper Wawa Dam.

“Mr. President, some time this month…, we saw it was empty and (they said) it would take six months for them to fill it up… If without it, I feel that, most likely, San Mateo and Montalban would be down; and definitely, Marikina and parts of Quezon City and even Pasig would be affected,” Ms. Ynares said.

The Upper Wawa Dam features a reservoir of about 450 hectares and can store up to 120 million cubic meters of water.

The Prime Infra-led WawaJVCo said that the dam’s reservoir accumulated over 90 million cubic meters of water during the super typhoon, which helped mitigate downstream flooding.

The second phase of the project will start supplying bulk water by the end of 2025.

The company said it will keep working with host communities “to help strengthen resilience against future weather-related challenges.”

Antonio A. Ligon, a law and business professor at De La Salle University in Manila, said: “As long as the profile of the Wawa Dam can be fitted to other areas, I see no objection to utilizing the Wawa model in other areas to prevent flooding.”

The Philippines can “effectively avoid floods if there is good environmental management,” he noted.

“We need to reconstruct and provide a long-term solution, not a temporary remedial measure.”

Deadpool at $205 million is biggest opening of the year

IMDB

WALT DISNEY Co.’s Deadpool & Wolverine took in $205 million in US and Canadian ticket sales this weekend, the biggest domestic debut of this year.

The movie also scored the best-ever opening for an R-rated picture, with more than twice the ticket sales of Warner Bros Discovery, Inc.’s Joker during its first weekend. Joker went on to become the highest grossing R-rated film in history with more than $1 billion at the box office after its 2019 release.

Boxoffice Pro had forecast Deadpool & Wolverine opening ticket sales of between $180 million and $200 million going into the weekend.

Deadpool & Wolverine, which sees Ryan Reynolds and Hugh Jackman reprise their roles as the foul-mouthed superhero and X-Men mutant, is the third installment in the Deadpool series. Disney acquired the film and television rights to the characters after its $71.3 billion acquisition of 21st Century Fox in 2019 and considers them some of the most important intellectual property that came with the deal, alongside Avatar.

“It’s tremendous but it’s not surprising — they did a great job marketing this, creating so much anticipation for the product and a feeling that you have to go out and see it now,” said Mike Bowers, chief executive officer of the Harkins cinema chain and vice-chairman of the National Association of Theatre Owners.

Mr. Bowers said its running time of about two hours allowed for more screenings, and the momentum from other successful theatrical movies in recent months such as the horror hit Longlegs and Inside Out 2 from Disney subsidiary Pixar helped drive audiences back to cinemas.

The success of Deadpool & Wolverine energizes the Marvel Cinematic Universe, a roster of 34 interconnected films that together form the most successful movie franchise in Hollywood history with more than $30 billion at the box office. After overtaxing audiences with a high volume of pictures, the wider superhero genre has underperformed in recent years with releases including Marvel’s Ant-Man and the Wasp: Quantumania and The Marvels, as well as DC’s The Flash and Shazam! Fury of the Gods all failing to recoup their production budgets.

“Your little cinematic universe is about to change, forever!” Mr. Reynolds’ character says in the movie.

Deadpool & Wolverine accelerates a turnaround at Disney’s film division, which hasn’t turned a profit since April 2022. Globally, the film sold $438 million worth of tickets.

Before this, the biggest opening weekend of the year in the US and Canada was Inside Out 2. It’s grossed $1.46 billion at the box office since its June release.

The results are also good news for cinema chains such as AMC Entertainment Holdings, Inc. and Regal-owner Cineworld Group, which have been struggling with weaker ticket sales amid a slowdown in film releases. — Bloomberg

Transactions via InstaPay, PESONet climb at end-June

STOCK PHOTO | Image by Pikisuperstar from Freepik

THE VALUE of transactions done through InstaPay and PESONet surged by 34.6% as of end-June, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Central bank data showed that transactions coursed through the two automated clearing houses climbed to P7.98 trillion as of June from P5.93 trillion in the same period a year ago.

In terms of volume, transactions done via InstaPay and PESONet also soared by 66.1% year on year to 660.7 million at end-June from 397.8 million.

Broken down, the value of transactions done through PESONet jumped by 28% to P4.69 trillion from P3.66 trillion in the year-ago period.

The volume of PESONet transactions likewise went up by 7.3% to 48.2 million from 44.9 million.

Meanwhile, the value of InstaPay transactions stood at P3.29 trillion in the January-June period. This was 45.3% higher than the P2.26 trillion recorded a year prior.

The volume of transactions that went through the payment gateway skyrocketed by 73.6% to 612.5 million from 352.9 million in the same period in 2023.

PESONet and InstaPay are automated clearing houses launched in December 2015 under the central bank’s National Retail Payment System framework.

PESONet caters to high-value transactions and may be considered as an electronic alternative to paper-based checks.

Meanwhile, InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.

Digital payments made up 52.8% of the volume of retail transactions in 2023, latest Bangko BSP data showed, up from the 42.1% share in 2022.

In terms of value, 55.3% of retail transactions last year were done online, also rising from 40.1% the year prior.

The BSP wanted at least 50% of the volume and value of retail transactions done online by end-2023 under its Digital Payments Transformation Roadmap.

The BSP wants online payments to make up 60-70% of the country’s total retail transaction volume by 2028 in line with the Philippine Development Plan. — Luisa Maria Jacinta C. Jocson

RLC Residences commits to net-zero carbon condominiums by 2031

RLC RESIDENCES has pledged to deliver one million square meters of net-zero carbon and resilient condominiums by 2031, in partnership with International Finance Corp. (IFC).

“We started this journey on sustainability back in 2022, and we’re pleased to have advanced enough to have our first building, Le Pont Residences in Bridgetowne [Destination Estate], EDGE-certified,” RLC Residences Senior Vice-President and Business Unit General Manager John Richard B. Sotelo said in a statement on Monday.

The partnership aims to achieve net-zero carbon status by implementing green building measures and obtaining EDGE (excellence in design for greater efficiencies) certification from IFC. Additionally, it will use the IFC’s Building Resilience Index  tool to assess and verify the resilience of RLC Residences projects.

“RLC Residences’ commitment to green and resilient initiatives is commendable and a vital step towards a sustainable future,” IFC Global Lead for EDGE and Building Resilience Index Ommid Saberi said.

Mr. Saberi added that achieving EDGE Preliminary Certification for Le Pont Residences demonstrates a “forward-thinking approach” that benefits both the environment and the local community.

“As a hotspot for disasters, it is crucial to explore how the Philippines can incorporate climate resilience practices into the design and construction of buildings,” he said.

IFC, the private sector arm of the World Bank Group, offers EDGE as a free software and green building standard and certification system.

It aims to empower developers to build sustainable properties through cost-effective and environmentally friendly means while delivering high-quality buildings. — Aubrey Rose A. Inosante

St. Luke’s starts construction on 13-storey QC hospital building

St. Luke’s Medical Center (SLMC) on Monday broke ground for its 13-storey hospital building in Quezon City.

“The current capacity for the old St. Luke’s, as it exists, is around 500 beds. This new building will give us 140 new rooms,” SLMC President and Chief Executive Officer Dennis P. Serrano told reporters on Monday.

The building, which is expected to be ready by 2027, will house nearly 80% of the hospital’s existing services.

The renovation of the Quezon City hospital, established in the 1960s, will cost P6 billion.

SLMC is also working on an P18-billion hospital expansion in Aseana, Parañaque.

“We promised to make this the best, the most modern hospital, better than Global (City), because Quezon City is the birth site of St. Luke’s, where it all began,” Mr. Serrano said.

He said that modern diagnostic imaging equipment, magnetic resonance imaging (MRIs), computed tomography (CT) scan, nuclear imaging, and other equipment will be placed in the Quezon City facility.

He added that SLMC is targeting to have a better turnaround time.

“After the hospital building, we’re looking at redeveloping the outpatient clinics for the doctors, the medical arts building. You can also see our College of Medicine. We’re already cramped,” Mr. Serrano said. — Aubrey Rose A. Inosante

Paved over gardens are environmental warfare

RUMMAN AMIN-UNSPLASH

ONE of the challenges with the climate crisis is that our actions — taking a flight abroad or eating a beef burger, for example — can feel disconnected from the impact of the resulting emissions.

You don’t see the deforestation, which may well be linked to your meal. How much more did that flight contribute to the heatwave that gripped southern Europe last week? But other connections are easier to make. Walking through my London neighborhood in the rain — a common occurrence this year — underlines the connection between building materials and flood risk. You can watch the waters gather momentum as torrents race over concrete and asphalt to overwhelm the storm drains.

Urban and suburban areas around the world are increasingly burdened by flooding. Part of the problem is that the climate crisis is leading to more intense rainfall, but we’ve made ourselves vulnerable by steadily transforming green, spongy ground into hard, impermeable surfaces.

In England, the permeable fraction of the total urban area has decreased to 54% in 2022 from 63% in 2001, while the number of dwellings at high risk of flooding from surface water (as opposed to from rivers and sea) has increased by 11% since 2020. The London Climate Resilience Review, which assessed the capital city’s preparedness for more extreme weather, cites surface water flooding as a lethal threat. In July 2021, two extreme rainstorms struck the city, swamping more than 2,000 properties with stormwater and sewage. More than 30 underground tube stations were affected, and hospital wards were evacuated.

Although city planners, water companies, and councils have a responsibility to increase the sponginess of our public spaces, private homeowners are culpable, too — particularly those who’ve paved over their gardens.

The Royal Horticultural Society highlighted the issue in 2015, saying that almost one in four front gardens in the UK were completely paved over, with Londoners being the worst offenders. Though I couldn’t find recent garden-specific data, the annual decrease in the total permeable surface area combined with a COVID-19 lockdown-driven boom in artificial grass (which TV presenter Chris Packham aptly calls the “horticultural antichrist”) means even more outdoor spaces have likely been hardened in the last nine years.

These impermeable surfaces cause a range of problems even when it’s not raining. While trees and plants cool the air and provide shade when temperatures are high, paving slabs and concrete absorb solar radiation and contribute to the urban heat-island effect, in which cities are several degrees hotter than the surrounding countryside. Research commissioned by environmental campaigners Friends of the Earth found that in July 2022, when temperatures around the UK topped 40°C, inner-city areas were up to 5°C hotter than places with more vegetation.

Stripping gardens of plants also eliminates habitats and food for native wildlife, including those all-important pollinators. When it does rain, stormwater runoff from non-absorbent surfaces picks up pollutants and delivers them straight into our rivers, causing yet more biodiversity and human health issues. They make sewage spills more probable. And because the water is ushered rapidly through the landscape, it means groundwater resources aren’t being replenished — putting areas like London at higher risk of water stress.

In short, paved-over gardens are an environmental disaster. There are justifiable reasons — including improving access for those with mobility issues and enabling electric vehicles to be charged at home. But there is an abundance of ways to achieve a balance between people’s needs and nature-friendly design. There are a host of permeable driveway options, such as wheel tracks, gravel and porous paving. Easy-to-navigate paths can be combined with low-maintenance planted areas. Simply reducing the area of paving can be effective in decreasing flood risk.

In 2008, the government changed the law to require planning permission if homeowners wanted to pave over their front gardens with more than five square meters of hard, impermeable surface that prevents water from being absorbed. But a lack of guidance on the standards of permeability, alongside insufficient capacity or the expertise to check compliance, means the law doesn’t solve the problem it set out to.

So what can be done? The debt-beleaguered Thames Water, Britain’s largest supplier, aims to deliver sustainable drainage solutions to more than 7,000 hectares of land in London over the next 25 years, the equivalent of more than 10,000 football pitches. However, the utility’s blueprint shows that it also plans to conduct most of this after 2040 and states that “this level of delivery is beyond [their] experience,” suggesting it will be heavily reliant on partnerships to get the work done. Councils in London have been installing rain gardens, yet they also lack the powers and resources to move at pace and scale.

Meanwhile, private domestic gardens account for 24% of the Greater London area. Getting homeowners on board with de-paving could therefore be an effective way to mitigate the issue. One of the recommendations in the London Climate Resilience Review was for the UK government to consider introducing storm water charges for people who pave over gardens, as well as incentives to remove paving.

It’s a smart idea — but one that will need to carefully balance the carrot-and-stick. The Review suggests charging people based on the surface area of the land they own that’s impermeable, which would potentially disincentivize paving over gardens and raise much needed revenue to help local authorities improve public spaces. It would be a progressive charge — meaning that it would cost wealthier folks, who are more likely to own homes with garden space, more than those with lower incomes — but it may be difficult to enforce.

London may also consider taking a leaf out of Washington DC’s book and emulating its RiverSmart program, which provides technical assistance and financial incentives to property owners to install solutions such as rainwater butts, green roofs, rain gardens, and permeable paving. Participants can get a discount on their water bills as well as apply for rebates if they’ve paid for the work.

The benefits of de-paving would be felt near instantly. In a world where it’s easy to believe positive actions make little difference, that’s powerful.

BLOOMBERG OPINION

2025 National Expenditure Program

THE DEPARTMENT of Budget and Management (DBM) on Monday submitted to the House of Representatives its proposed P6.352-trillion national budget for 2025, which increases allocations for education by less than 1% and for defense by 6.4%, while more than doubling the budget for transportation. Read the full story.

2025 National Expenditure Program

How PSEi member stocks performed — July 29, 2024

Here’s a quick glance at how PSEi stocks fared on Monday, July 29, 2024.

PHL shares end lower on profit taking before Fed

BW FILE PHOTO

PHILIPPINE SHARES ended in the red on Monday as investors booked profits ahead of the US Federal Reserve’s upcoming policy meeting and amid the absence of catalysts.

The bellwether Philippine Stock Exchange index (PSEi) fell by 1.14% or 76.78 points to end at 6,649.23 on Monday, while the broader all shares index dropped by 0.68% or 24.77 points to close at 3,605.33.

“The local bourse lost due to the lack of a strong catalyst. Foreign investors weighed on the market,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

Net foreign selling totaled P500.34 million on Monday, a reversal of the P78.98 million in net buying recorded on Friday.

“Investors were waiting for the Federal Reserve meeting, which could influence the Bangko Sentral ng Pilipinas’ (BSP) decision regarding interest rates. Chart-wise, the market’s resistance was still pegged at 6,700-6,800, and it seemed the market is struggling to break and stay above this level,” Ms. Alviar added.

The Fed is widely expected to keep its target rate at the current 5.25%-5.5% range for the eighth straight time at their July 30-31 meeting.

After a benign June inflation report, markets are wagering that the Fed will lay the groundwork for a September rate cut at its policy meeting on Wednesday, Reuters reported.

Futures are fully priced for a quarter-point easing and even imply a 12% chance of 50 basis points (bps), and have 68 bps of easing priced in by December.

Meanwhile, the BSP is set to hold its own review on Aug. 15, where it is expected to deliver its first rate cut in over three years.

“Philippine shares succumbed to profit taking before the month’s end as investors looked to cash in after July saw a substantial rise in the index,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Funds are also gearing up for another data-heavy week, with more company earnings coming in as well,” he said.

Almost all sectoral indices ended lower on Monday, with industrials being the lone gainer, rising by 0.16% or 14.9 points to 9,174.50.

Meanwhile, financials retreated by 2.65% or 55.08 points to 2,021.37; mining and oil dropped by 1.18% or 98.57 points to 8,253.27; property went down by 0.89% or 23.91 points to 2,640.56; services declined by 0.84% or 16.95 points to 1,990.23; and holding firms decreased by 0.51% or 29.98 points to 5,792.24.

“Among the index members, ACEN Corp. achieved the top spot, surging by 6.19%, while Bloomberry Resorts Corp. was at the bottom, losing 4.56%,” Ms. Alviar said.

Value turnover rose to P5.06 billion on Monday with 658.32 million shares changing hands from the P4.37 billion with 924.21 million issues traded on Friday.

Decliners outnumbered advancers, 105 versus 83, while 55 names ended unchanged. — R.M.D. Ochave with Reuters

1...2,9032,9042,905...14,244Page 2,904 of 14,244
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube