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Economic basis of net zero is zero

We go straight to the numbers. I constructed two tables that accompany this piece. The first shows that in Group A countries that have fast “decarbonization” and are weaning themselves away from coal consumption measured in terajoules (TJ) per person from 2002 to 2022 or over two decades, their overall electricity generation either flatlines or declines. Then their GDP per capita at purchasing power parity (PPP) values over two decades have expanded by two times at most.

Group B countries are Europeans that have high coal consumption plus South Africa. Their coal use per capita has either declined or increased a bit, their overall electricity generation increased (except South Africa) and their per capita GDP has doubled or tripled.

The Group C countries are in Asia. They all have expanded their coal consumption per capita, their electricity generation has doubled or quadrupled (except Pakistan), and their per capita GDP has expanded up to five times (See Table 1).

Next table shows countries that have had huge expansions in wind plus solar from 2007 to 2022 or over 15 years. Then I compare their GDP growth during the 10 years before 2007 and 10 years before 2022. There are many reasons why a country’s economic performance is good or bad, and the quality of power generation (coming from stable and conventional sources vs intermittent sources) and electricity prices are among the important contributors.

Group A countries have had a high jump in solar + wind use and have shown growth deceleration.

Group B countries in Asia showed little expansion in solar + wind use (except Japan and China) and they showed high average GDP growth (See Table 2).

The wild pursuit of “net zero” and decarbonization has no economic basis for developing countries that need to create more jobs, more businesses, and more streetlights. Dark streets at night — which lead to more road accidents, more crimes like stabbing, abduction, and murder — are fatal today, not 50 or 100 years from now.

Meanwhile, here are some recent developments in the Philippines energy sector as reported in BusinessWorld and mostly written by Sheldeen Joy Talavera: “ERC extends suspension of FIT-All collection” (Aug. 22), “FIT-All collection freeze not seen affecting RE developers” (Aug. 27), “EPIRA changes should focus on tax — Congress think tank” (Aug. 28), “Coal-fired capacity for retirement in clean-energy shift seen at 5,000 MW” (Aug. 30), “Energy infra enhancements, streamlined permits seen attracting more investment” (Aug. 31), “Energy dep’t awards 77 offshore wind contracts” (Aug. 31), “ERC grants Meralco-PEDC move to end supply deal” (Sept. 1), and, “Further consultation needed on gas-power quota for Luzon grid” (Sept. 3).

The Department of Energy plan to retire more coal capacity is dangerous and anti-growth. As shown by the numbers in the tables, more coal use leads to more electricity generation and higher GDP per capita income. In contrast, adding more intermittent solar + wind share to the grid means a decline or the flatlining of electricity generation and per capita income.

We should prioritize our national agenda — more sustained growth, more job creation, more electricity for rising demand from households and industry. The global agenda of global ecological central planning should take a backseat.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers.

minimalgovernment@gmail.com

Meralco switches on substation at Arca South estate in Taguig

MANILA ELECTRIC Co. (Meralco) has energized a 115-kilovolt (kV) to 34.5-kV gas-insulated switchgear substation that will provide power supply to Ayala Land, Inc.’s Arca South estate and nearby communities in Taguig City.

In a media release on Monday, the company said it invested P597 million for the new substation, which has an initial capacity of 83 megavolt amperes (MVA).

The substation will house three transformer banks with a combined capacity of 249 MVA that will support the energy requirements of the area.

“The opportunity to participate in the master planning of Ayala estates has allowed Meralco to serve more customers and further cement our commitment to keep the lights on,” said Ronnie L. Aperocho, executive vice-president and chief operating officer of Meralco.

“As a testament to that, this newly energized smart substation in Arca South Taguig will provide safe, adequate, and reliable capacity to serve the existing and future power requirements of this particular Ayala Land development, and the adjacent communities in the area,” he added.

According to Meralco, some of the establishments that will benefit include AC Health’s Healthway Cancer Care Hospital, Ayala Malls Arca South, Alveo Veranda, Avida Towers Vireo, Landers Superstore Arca South, Maharlika Village, Puregold FTI Taguig, Sunshine Mall Plaza, Taguig Pateros Hospital, and Technological University of the Philippines-Taguig.

Robert S. Lao, Ayala Land senior vice-president and group head for Ayala Land Estates, said that the substation represents the company’s “dedication to sustainable urban development.”

“It is a cornerstone of progress, enabling us to power homes, businesses, and innovations that will drive Arca South’s growth and development,” he said.

About a hundred projects of Ayala Land and its subsidiary, Makati Development Corp., including One Ayala and Seda Manila Bay, have been energized by Meralco.

“We share a common goal which is to uplift the lives of our people and we encourage the active participation and engagement of the private sector in the present economic programs,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Entertainment News (09/05/23)


Daryl Hall coming to PHL in November

Ovation Productions has announced that the renowned singer-songwriter Daryl Hall is scheduled to perform live in Manila on Nov. 27 at the Mall of Asia Arena. He will be joined by The Daryl’s House Band and Todd Rundgren as special guests.  Mr. Hall is known as half of the iconic duo Hall & Oates and he will be performing many of the duo’s popular hits, which include “Maneater,” “Kiss On My List,” “Private Eyes,” “I Can’t Go For That (No Can Do),” “Out Of Touch,” “One On One,” “She’s Gone,” and “You’ve Lost That Lovin’ Feeling,” among others. Since 1972, during the Hall & Oates years until now, the singer is still achieving career milestones more than four decades later, continuing to perform with his band to sold-out venues around the world. He released his first retrospective album, BeforeAfter, on April 1, 2022. This is a compilation album of Mr. Hall’s solo work. Its 30 songs draw from his five studio albums: Sacred Songs (1980), Three Hearts in the Happy Ending Machine (1986), Soul Alone (1993), Can’t Stop Dreaming (1996), and Laughing Down Crying (2011), as well as from his ongoing concert webcast-turned-broadcast series, Live from Daryl’s House. One of the artists he featured in his webcast is Todd Rundgren, who will also be with him in his concert in the Philippines as his guest performer. Tickets to the Mall of Asia concert are available at smtickets.com and range in price from P2,750 (general admission) to P15,750 (SVIP).


Catriona’s wax figure up in Madame Tussauds HK

MADAME TUSSAUDS Hong Kong launched the newest addition to its all-star lineup of wax figures — internationally renowned singer, model, and beauty queen Catriona Gray, who was Miss Universe in 2018. Initially at Madame Tussauds Singapore in 2022, the figure was transferred to the Hong Kong branch. It shows off her iconic fiery lava gown and signature “lava walk” pose. The whole ensemble, from her hair to the iconic three stars and the sun ear cuff, pays homage to her journey and commitment to her advocacies for country and society. BoBo Yu, head of sales and marketing of Madame Tussauds Hong Kong, said, “Catriona Gray has made her mark with her advocacy work and time as Miss Universe. Having her wax figure here offers our visitors a special chance to connect and be inspired by her story.” Ms. Gray herself was at the launch on Aug. 31. The wax figure can now be viewed by the public, with Filipino citizens with both a Hong Kong ID and Philippine passport eligible for a special rate of HK$178 (P1,287). The regular rate is HK$299 (P2,159).


Måneskin releases new single

ITALIAN rock band Måneskin has released their new single under Sony Music Entertainment, “Honey (are you coming).” Their first song following the release of the chart-topping album RUSH!, “Honey (are you coming)” showcases a mighty guitar riff and a roaring chorus. “It’s the story of someone who has no gender or anything. You decide whoever it is,” said frontman Damiano David. “It’s an invitation from one person to another to join them into this new adventure without knowing what they’re actually going to find, but just enjoy the adventure.” Måneskin will be performing the new song live at the MTV VMAs later this month, where they are also nominated in the Best Rock category. The song is available on all digital music platforms worldwide.


Jasmine Yen drops full-length debut album

SINGER-SONGWRITER Jasmine Yen is releasing her full-length debut album tbh via RCA Records Greater China. The daughter of the prolific actor Donnie Yen and Cecilia Wang, the 19-year-old unveiled eight songs, four bilingual and four fully in English. The album release follows the release of her first single and upbeat dance number “idk.” “Since childhood, I’ve found music and songwriting to be my favorite method of self-expression,” said Ms. Yen in a statement. “This album is my way of showcasing my confidence and highlights my coming-of-age journey of not being afraid to hold back on sharing my thoughts and emotions. There’s definitely a running theme of empowerment through this album.” Raised in Hong Kong, Ms. Yen has written over 70 original songs, including 30 during the pandemic. tbh is available on all digital music platforms worldwide.

GMA Integrated News launches infotainment show

GMA Integrated News premiered a brand-new news and infotainment program, Balita Ko, on Sept. 4, on GTV. Anchored by two award-winning and seasoned journalists, Connie Sison and Raffy Tima, Balita Ko aims to give viewers not just breaking news and updates, but also fresh segments that tackle a range of topics. It will have segments like “Kitang Kita,” which features successful and inspiring stories on livelihood, small businesses, and side hustles; “Health Is Wealth,” which tackles health-related news and issues; and “Talaga Ba?,” a segment that debunks common myths. Balita Ko airs on weekdays at 11 a.m. on GTV.


Dirty Linen comes to Prime Video

THE LOCAL hit series Dirty Linen will be added to the streaming platform Prime Video on Sept. 7. Directed by Onat Diaz and Andoy Ranay, it follows a woman who takes on a new identity as a maid to infiltrate the wealthy household of the prominent Fiero family who are responsible for her mother’s sudden death. The ABS-CBN drama is a revenge and love story that kicks off after four household workers of the Fiero family mysteriously vanished. The 12-episode exclusive cut will be on Prime Video on Sept. 7.


QCinema launches first Critics Lab

For its 11th edition, the QCinema International Film Festival is launching its first QCinema Critics Lab, which invites six new film critics to learn under the guidance of established writers, journalists, film scholars, curators, and film professionals and contribute to Southeast Asian film discourse. It aims to expand and deepen the current practice of film criticism towards alternative forms and ways of critiquing. The application process involves an open call for candidates — Youtubers, Instagram or Facebook Reel creators, Tiktokers, podcasters, film bloggers, and film journalists. The QCinema Critics Lab will be held onsite in Quezon City from Nov. 17-20, where the young critics will watch for QCinema entries and attend briefings with film, publishing, and media professionals. QCinema will shoulder all necessary expenses including accommodations, travel allowance, and per diem. At the end of the lab, QCinema will be awarding two critics the Alexis Tioseco and Nika Bohinc Award for Film Criticism for promising work created during the lab. For application forms and more details on the requirements, go to QCinema’s social media accounts (@qcinemaph on Facebook, Instagram, and X / Twitter). All entries must be submitted by Sept. 15.

CBDCs may boost financial inclusion in Asia, ADB says 

DEVELOPING NATIONS in the Asia and the Pacific region should consider using central bank digital currencies (CBDC) to make payments more efficient and inclusive, the Asian Development Bank (ADB) said.

“For developing countries in Asia and the Pacific, a CBDC may help improve financial inclusion,” the ADB said in a report released last month.

“CBDCs may allow central banks to tap the benefits of new digital technologies while retaining the power of a primary regulator, and might be more efficient than traditional fiat money in transfer fees, time reduction, and reach, through digitalization and distributed ledger technology,” it added.

A CBDC is a digital representation of a sovereign currency issued by and as a liability of a jurisdiction’s central bank or the monetary authority.

The Bangko Sentral ng Pilipinas (BSP) is testing the use of wholesale CBDC among selected financial institutions until 2024.

The ADB said CBDCs can be designed to be inclusive and convenient.

“A simple download of application software can replace the complicated, inconvenient, and costly onboarding process for users at the most basic level. A CBDC can then function similar to physical transactions using cash,” it said.

“It eliminates the intermediary and counterparty risk. The breakdown in trust among licensed payment institutions during crises is a bottleneck for central banks’ efforts to distribute money to the ultimate beneficiaries. A central-bank-authorized digital currency with distributed ledger technology has the potential to lower the cost of entry by eliminating or minimizing counterparty risk,” it added.

The multilateral lender also cited other opportunities from CBDCs, such as “risk mitigation, accurate measurement of economic activity, monetary and fiscal sovereignty, managed anonymity, elimination or lowering of trusted third-party cost for inclusion, more statistics on financial inclusion, innovation, distribution, and more clarity in lending.”

On the other hand, the ADB noted the potential risks from using CBDCs.

“The design of a CBDC is particularly important, calling for clear understanding of how it can impact on the existing monetary system’s confidence when it is introduced,” it said.

“For example, the introduction of CBDCs might alienate segments of the population such as the poor or old people with insufficient digital infrastructure access or required skills,” it added.

Other risks include bank runs, financial disintermediation of incumbents, emergence of CBDC derivatives and engineered products, attracting valuation premium during crises, and uncertainty surrounding design and monetary policy management, among others.

“While there is more consensus now that a CBDC is a public good and may not bear interest, any discussion is conditional on the feasible CBDC designs and models in development,” the ADB said.

“Every country will take a different path. Even within a country, it is risky for the central bank to single out a so-called optimal technology roadmap, and anti-competition regulations are required to clear hurdles for technology innovation…the discussions here are on current CBDC developments, and many of these risks may disappear and others emerge as governments gain better understanding and respond accordingly with new measures,” it added. — L.M.J.C. Jocson

Construction trade show to be held in Davao

A CONSTRUCTION trade show is set to open in Davao City this week.

Philconstruct Mindanao 2023 will be held from Sept. 7 to 9 at the SMX Convention Center Davao in SM Lanang Premier. It will also be available online on the VX Events platform.

The three-day construction expo will gather more than 1,000 industry leaders and suppliers from around the country.

“The event has evolved to become among the most important trade shows in the construction industry. It has also become a platform for introducing businesses to the latest innovations and solutions. Philconstruct has always prioritized Mindanao in recognition of the region’s potential and the robust construction industry across all cities and provinces in the area,” Wilfredo L. Decena, president of the Philippine Constructors Association (PCA), said in a statement. PCA is the organizer of the trade show.

The event will also feature seminars and workshops such as Enhancing Direction Towards Climate Change Mitigation and Community Welfare by the Philippine Green Building Initiative, and Formworks Design and Basic Calculation and Essentials of Supervisory Leadership by the Association of Carriers and Equipment Lessors, Inc.

A job fair will also be organized by the Davao Constructors Centers Association, Inc. in partnership with the Department of Labor and Employment Region XI and the Construction Industry Tripartite Council of Region XI.

Registration can be done on event.philconstructevents.com or VX Events site.

Helping students master world of AI chatbots

FREEPIK

A few months ago, I was invited to speak at two academic conferences where the moderators chose to be innovative by introducing me using text generated by ChatGPT. As most of you would know, ChatGPT is the artificial intelligence (AI) chatbot that took the world by storm when OpenAI released it in November 2022. It answers any question in seemingly knowledgeable and flawless English (and in other languages, too). It has improved tremendously since its release and has more than 100 million users worldwide.

At the academic conferences, ChatGPT made the moderators believe that I completed my doctorate at both Oxford University and Cambridge University, was a consultant to the World Bank and the Asian Development Bank, was a senior editor of the Journal of Business Ethics, and was the founder and Chairperson of the Management Association of the Philippines.

None of this is true.

I pointed this out to the conference organizers. This was our rude introduction to the tendency of AI chatbots to make up utterly false claims (technically called “hallucinations”).

As far as I can tell, ChatGPT no longer makes false claims about individual persons. This is the result of fine-tuning and retraining the AI to improve the accuracy and appropriateness of its outputs. But other AI chatbots have continuously been released with similar tendencies to make up false claims. At the same time, an increasing number of people have grown accustomed to using AI chatbots regularly, assuming that the information they generate is reliable and true.

A US judge sanctioned two lawyers who submitted a legal brief that included fictitious case citations generated by ChatGPT. An Australian mayor threatened to sue OpenAI for defamation after ChatGPT generated a response falsely accusing the mayor of being involved in a bribery scandal.

One of the most affected sectors is education, where schools are struggling to regulate students’ use of chatbots in all aspects of academic work, from writing essays, reviewing for exams, and even summarizing technical articles.

My biggest concern is that chatbot use is quickly eroding critical thinking among many users who need help understanding the nature of large language models and find the quick and fluent answers from chatbots irresistible. This can easily lead to a global pandemic of misinformation and ignorance that could have serious consequences.

I think that AI chatbots have tremendous potential to be helpful to human beings for both entertainment and work. But gaining the benefits while avoiding the harm will be very tricky. De La Salle University has released an advisory to the academic community containing broad principles encouraging the judicious use of AI. It has also allowed academic departments to formulate their policies. The Department of Management and Organization has approved an AI Use Policy, which takes effect at the start of the academic year on Sept. 4. The policy, parts of which are adapted from the policy of Boston University, reads as follows:

Students shall:

1. Use AI tools wisely and intelligently, with the goal of deepening critical understanding of the subject matter and supporting learning.

2. Understand the design intent, inner workings, data inputs, and restrictions of particular AI tools while being mindful of ethical considerations and mitigating human risks and harmful consequences related to using such tools.

3. Disclose and give credit to particular AI tools whenever used, even if only to generate ideas rather than usable text or illustrations.

4. Not use AI tools during examinations or assignments unless explicitly permitted and instructed.

5. When using AI tools on assignments, add an appendix showing (a.) the entire exchange, highlighting the most relevant sections; (b.) a description of precisely which AI tools were used (e.g., ChatGPT subscription version or Bing Chat, etc.), (c.) an explanation of how the AI tools were used (e.g., to generate ideas, turns of phrase, elements of text, long stretches of text, lines of argument, pieces of evidence, maps of conceptual territory, illustrations of key concepts, etc.); (d.) an account of why AI tools were used (e.g., to save time, to surmount writer’s block, to stimulate thinking, to handle mounting stress, to clarify prose, to translate text, to experiment for fun, etc.).

6. Employ AI detection tools and originality checks prior to submission, decreasing the chances that their submitted work is not mistakenly flagged.

The policy aims to balance encouraging students to use the new AI tools to support their learning process and ensuring this is based on an understanding of how AI works and the risks involved. It also demands transparency from students about the process they underwent in using AI.

Students remain solely responsible for verifying the truth and reliability of information provided by AI tools. The spread of generative AI chatbots like ChatGPT is irreversible. However, the campaign to sharpen critical thinking among students is now more important than ever.

 

Dr. Benito L. Teehankee is a full professor at the Department of Management and Organization of De La Salle University.

benito.teehankee@dlsu.edu.ph

Bernardo quits board of listed firms

ROMEO L. Bernardo has stepped down as director of listed companies after his appointment to the central bank’s monetary board.

In separate regulatory filings on Monday, listed firms Monde Nissin Corp., Aboitiz Equity Ventures, Inc. (AEV), and Bank of the Philippine Islands (BPI) disclosed the resignation of Mr. Bernardo effective Sept. 12, 2023.

Mr. Bernardo is a lead independent director at AEV, an independent director at Monde Nissin, and a director at BPI. The bank, along with Monde Nissin, said his replacement will be elected by their board of directors in due course.

On Saturday, the Presidential Communications Office named Mr. Bernardo, a former Finance undersecretary, as a new member of the policy-making body of the  Bangko Sentral ng Pilipinas (BSP), along with National Treasurer Rosalia V. de Leon.

Their appointment will bring to six the current members of the Monetary Board. A seventh member has yet to be named. BSP Governor Eli M. Remolona, Jr. chairs the board, with Finance Secretary Benjamin E. Diokno, Bruce J. Tolentino, and Anita Linda R. Aquino as the other board members.

Three seats were vacated when the terms of former BSP governor Felipe M. Medalla, Antonio S. Abacan, Jr. and Peter B. Favila expired in July.

In its annual report, BPI described Mr. Bernardo as the founder of his consultancy practice, Lazaro Bernardo Tiu & Associates in 1997. He has also been an advisor to various multilateral institutions and has worked with government institutions and the National Economic and Development Authority in policy matters involving pension reform, capital markets reform, and fiscal and debt management.

Manila ranks 3rd in 46-city Prime Global Cities Index

Manila’s prime residential prices increased by 19.9% year on year in the second quarter of 2023, according to the latest edition of the Prime Global Cities Index by real estate consultancy firm Knight Frank. The capital city placed third out of 46 cities in the index after Dubai and Tokyo.

Manila ranks 3<sup>rd</sup> in 46-city Prime Global Cities Index

How PSEi member stocks performed — September 4, 2023

Here’s a quick glance at how PSEi stocks fared on Monday, September 4, 2023.


MTRCB suspends It’s Showtime

AFTER RECEIVING multiple complaints of indecent behavior, the Movie and Television Review and Classification Board (MTRCB) has issued its decision to suspend the live noontime program It’s Showtime for 12 airing days.  

In a statement issued on Sept. 4, the board said that many complaints were concerned about the July 25 episode of the show, during which the program’s hosts “allegedly acted in an indecent manner during one of its segments called ‘Isip Bata’.”  

The segment in question had a brief moment where comedian-host Vice Ganda shared a cake with partner Ion Perez and, taking some of the icing from Mr. Perez’s fingers to taste it, greeting him a “happy monthsary.”   

MTRCB’s statement said that the case falls under Presidential Decree (PD) No. 1986, which grants the board the power to disapprove of objectionable portions from and prohibit the broadcast of television programs. 

Meanwhile, It’s Showtime will have the opportunity to file “one Motion for Reconsideration (MR) within 15 days after receipt of the decision.”  

If the decision on the MR be negative, the show may appeal to the Office of the President within 15 days from its receipt. 

The MTRCB had already issued two warnings this year to the noontime show. The first was concerning the “inappropriate utterance of the word ‘g-spot’ by hosts Ms. Ganda and Jhong Hilario during the Jan. 24 episode” and the “inappropriate utterance of the word ‘tinggil’ by host Vhong Navarro during the June 23 episode.” 

Though ABS-CBN and It’s Showtime have yet to release any official comment regarding the board’s notice, Ms. Ganda acknowledged the suspension in the show’s Sept. 4 episode, joking about it offhand with co-host Mr. Navarro. — Brontë H. Lacsamana

Shares rise on dovish Fed bets ahead of CPI data

REUTERS

PHILIPPINE STOCKS went up on Monday, tracking US shares’ rise, on bets that the US Federal Reserve is done hiking rates and as investors await the release of August Philippine inflation data.

The Philippine Stock Exchange index (PSEi) went up by 33.62 points or 0.54% to close at 6,214.68 on Monday, while the broader all shares index rose by 14.47 points or 0.43% to end at 3,356.44.

“This increase was attributed to positive cues from Wall Street last Friday, where higher unemployment rates provided investors with optimism that the Federal Reserve might consider pausing its monetary tightening measures in response to the data,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

US stock indexes settled for a mixed close after a US jobs report showed an uptick in unemployment, cementing expectations that the Fed will let interest rates stand at its September meeting, Reuters reported.

The Dow Jones Industrial Average rose 115.80 points or 0.33% to 34,837.71; the S&P 500 gained 8.11 points or 0.18% to 4,515.77; and the Nasdaq Composite dropped 3.15 points or 0.02% to 14,031.81.

The Labor department’s payrolls report showed the US economy added more jobs than expected last month, but the rising unemployment and participation rates, along with a welcome cool-down in average hourly wage growth, solidified expectations that the Fed will let key interest rates stand this month.

“Philippine shares were bought up ahead of the local CPI (consumer price index) [on Tuesday], and as others started taking positions with the week ahead,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

A BusinessWorld poll of 18 analysts yielded a median estimate of 4.9% for August headline inflation, near the lower end of the central bank’s 4.8% to 5.6% forecast for the month.

If realized, this would be faster than the 4.7% print in July, but lower than the 6.3% seen in August 2022.

It would mark the 17th straight month of inflation exceeding the Bangko Sentral ng Pilipinas’ 2-4% target for the year.

Sectoral indices rose on Monday except for financials, which dropped by 3.07 points or 0.16% to 1,833.81.

Meanwhile, property rose by 37.70 points or 1.46% to 2,604.86; mining and oil went up by 136.43 points or 1.36% to 10,132.72; holding firms increased by 41.86 points or 0.71% to 5,910.55; services gained 4 points or 0.26% to end at 1,507.30; and industrials climbed by 23.13 points or 0.26% to 8,759.89.

Value turnover went down to P11.32 billion on Monday with 2.30 million shares changing hands from the P11.51 billion with 2.11 million issues seen on Friday.

Advancers outnumbered decliners, 94 to 82, while 42 names closed unchanged.

Net foreign selling went down to P1.20 billion on Monday from P5.69 billion on Friday. — SJT with Reuters

Peso weakens against dollar as market awaits August inflation report

BW FILE PHOTO

THE PESO inched down against the dollar on Monday as the market awaited the release of the August consumer price index report on Tuesday.

The local currency closed at P56.62 versus the dollar on Monday, weakening by 2.50 centavos from Thursday’s P56.595 finish, data from the Bankers Association of the Philippines’ website showed.

The local unit opened Monday’s session weaker at P56.65 per dollar. Its intraday best was at P56.49, while its worst showing was at P56.66 against the greenback.

Dollars traded went up to $1.59 billion on Monday from the $1.48 billion on Thursday.

The peso weakened ahead of the release of August inflation data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“[On Tuesday], we’ll get domestic inflation, which could hint at the BSP’s (Bangko Sentral ng Pilipinas) own policy path,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in a Viber message.

A BusinessWorld poll of 18 analysts yielded a median estimate of 4.9% for August inflation, near the lower end of the central bank’s 4.8-5.6% forecast for the month.

If realized, this would be faster than the 4.7% in July, but lower than the 6.3% print in August 2022.

It would also mark the 17th straight month that inflation exceeded the central bank’s 2-4% target.

The BSP last month kept benchmark interest rates steady for a third straight meeting, but signaled it is prepared to resume tightening if needed amid risks to inflation.

The Monetary Board left its overnight reverse repurchase rate unchanged at a near 16-year high of 6.25%. Interest rates on the overnight deposit and lending facilities were maintained at 5.75% and 6.75%, respectively.

The BSP has raised borrowing costs by 425 basis points (bps) from May 2022 to March 2023 to help bring down elevated inflation.

The Monetary Board will hold its next policy meeting on Sept. 21.

“We did note some inflows, possibly from remittances, over the long weekend helping offset anxiety over the outlook for the Fed policy stance,” Mr. Mapa added.

The US Federal Reserve raised interest rates by 25 bps in July, bringing its benchmark overnight rate to a range between 5.25% and 5.5%.

It has hiked rates by a cumulative 525 bps since it began its tightening cycle in March last year.

The Federal Open Market Committee will next meet on Sept. 19-20 to review policy.

The market expects the Fed to keep rates steady and possibly end its tightening cycle this month following soft economic data.

For Tuesday, Mr. Ricafort sees the peso trading from P56.50 to P56.70 against the dollar. — AMCS