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Term deposit yields slip amid US recession fears

YIELDS on the central bank’s term deposits inched down on Wednesday as expectations of a recession in the United States caused oil prices to decline.

The term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) attracted bids amounting to P385.602 billion on Wednesday, well above the P330-billion offering but declining from the P479.514 billion seen a week ago.

Broken down, tenders for the seven-day papers reached P204.109 billion, higher than the P160 billion auctioned off by the central bank but failing to beat the P232.213 billion in bids seen the previous week.

Banks asked for yields ranging from 2.64% to 2.71%, narrower than the 2.58% to 2.725% band seen a week ago. This caused the average rate of the one-week deposits to decrease by 0.99 basis point (bp) to 2.6838% from 2.6937% previously.

Meanwhile, bids for the 14-day term deposits amounted to P181.493 billion, above the P170-billion offering but down from the P247.301 billion in tenders seen on July 6.

Accepted rates for the tenor were from 2.625% to 2.75%, inching lower than the 2.6253% to 2.7588% margin seen a week ago. With this, the average rate for the two-week deposits slipped by 0.64 bp to 2.7235% from 2.7299% logged in the previous week’s auction.

The term deposits and the 28-day bills are used by the BSP to mop up excess liquidity in the financial system and to better guide market rates.

The BSP has not auctioned 28-day term deposits for more than a year to give way to its weekly offerings of securities with the same tenor.

“The results of the TDF auction show that liquidity in the financial system remains ample. Looking ahead, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement on Wednesday.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that term deposit yields were marginally lower on Wednesday as signs of a possible recession in the US “led to downward correction in the prices of global oil to three-month lows and also lower prices of other commodities, as well as the easing of US Treasury yields.”

Oil prices and bond yields dipped on Tuesday as traders fretted over prospects of further central bank tightening and worries about the health of economies worldwide, Reuters reported.

The yield on 10-year Treasury notes was down 3.1 basis points to 2.96%, having dropped back below 3% overnight as investors bought safe-haven Treasuries amid a sell-off on Wall Street.

The two-year US Treasury yield, which typically moves in step with interest rate expectations, was down 3.1 basis points at 3.039%.

Growth fears were weighing on oil, despite concerns about tight supply. Oil prices fell sharply on Tuesday, pressured by the strong dollar, demand-sapping COVID-19 curbs in top crude importer China, and fears of a global economic slowdown.

On Wednesday, the US benchmark 10-year yield was 2.9724%, having traded either side of 3% for the last week.

Oil prices paused their overnight declines. Brent crude was little changed at $99.60 a barrel with US West Texas Intermediate crude at $95.89.

TDF yields also dropped despite the weakening peso and expectations of a rate hike by the BSP next month.

The peso rebounded on Wednesday, closing at P56.26 per dollar, rising by 11 centavos from its P56.37 finish on Tuesday, which was a near 18-year low.

Still, year to date, the local unit has weakened by 10.31% or by P5.26 from its close of P51 versus the dollar on Dec. 31, 2021.

BSP Governor Felipe M. Medalla last week said the central bank is prepared to raise benchmark rates by 50 bps at their Aug. 18 meeting to keep inflation in check after the peso on Thursday breached the P56 level against the dollar for the first time in more than 17 years.

He said the US central bank’s hawkish stance has placed “strong depreciation pressures” on global currencies such as the peso, which adds to inflation risks.

The Monetary Board has raised benchmark interest rates by a total of 50 bps so far this year via back-to-back 25-bp hikes at their May 19 and June 23 meetings, bringing the overnight reverse repurchase facility or policy rate to 2.5%.

A 50-bp hike at the August meeting will bring the BSP’s key rate to 3%. Mr. Medalla also said last week that the central bank may need to raise borrowing costs by at least 100 bps more this year to bring the policy rate higher than the midpoint of its 2-4% inflation target.

Headline inflation reached 6.1% in June, the fastest in nearly four years. This brought the first-half average to 4.4%, above the central bank’s 2-4% goal but still lower than its 5% forecast for the year. — K.B. Ta-asan with Reuters

Twitter sues Elon Musk to hold him to $44-B deal

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WILMINGTON, DE — Twitter, Inc. sued Elon Musk on Tuesday for violating his $44-billion deal to buy the social media platform and asked a Delaware court to order the world’s richest person to complete the merger at the agreed $54.20 per Twitter share.

“Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away,” said the complaint.

The lawsuit sets in motion what promises to be one of the biggest legal showdowns in Wall Street history, involving one of the business world’s most colorful entrepreneurs in a case that will turn on staid contract language.

On Friday, Mr. Musk said he was terminating the deal because Twitter violated the agreement by failing to respond to requests for information regarding fake or spam accounts on the platform, which is fundamental to its business performance.

Mr. Musk, who is the chief executive officer of electric vehicle maker Tesla, Inc., did not immediately respond to a request for comment.

The lawsuit accused Mr. Musk of “a long list” of violations of the merger agreement that “have cast a pall over Twitter and its business.” It said for the first time that employee attrition has been “on the upswing” since the deal was announced.

Twitter also accused Mr. Musk of “secretly” accumulating shares in the company between January and March without properly disclosing his substantial purchases to regulators, and said he “instead kept amassing Twitter stock with the market none the wiser.”

Shares of the social media platform closed at $34.06 on Tuesday, up 4.3%, but sharply below the levels above $50 where it traded when the deal was accepted by Twitter’s board in late April. The stock added another 1% after the bell.

Mr. Musk said he was terminating the merger because of the lack of information about spam accounts and inaccurate representations that he said amounted to a “material adverse event.” He also said executive departures amounted to a failure to conduct business in the ordinary course — although Twitter said it removed that language from the merger contract during negotiations.

Twitter also said it did not share more information with Mr. Musk regarding spam accounts because it feared he would build a competing platform after abandoning the acquisition.

Twitter called the reasons cited by Mr. Musk a “pretext” that lacked merit and said his decision to walk away had more to do with a decline in the stock market, particularly for tech stocks.

Tesla’s stock, the main source of Mr. Musk’s fortune, has lost around 30% of its value since the deal was announced and closed on Tuesday at $699.21.

In a separate filing, Twitter asked the court to schedule a four-day trial in mid-September.

In a memo to Twitter staff on Tuesday, Twitter Chief Executive Parag Agrawal sought to reassure employees about the future.

“We will prove our position in court and we believe we will prevail,” he wrote in the note, which was seen by Reuters.

Legal experts have said that from the information that is public, Twitter would appear to have the upper hand.

“In its complaint, Twitter is taking a strong position that Musk had a case of buyer’s remorse — and that, and not bots, is the reason for his decision to walk away from the deal,” said Brian Quinn, a professor at Boston College Law School. “The facts Twitter presents here make an extremely strong argument in favor of Twitter getting this deal closed.”

Mr. Musk is among Twitter’s most-followed accounts and the lawsuit included images of several of his tweets, including a poop emoji, that the company said violated the merger’s “non-disparagement” clause.

Mr. Musk tweeted the emoji on May 16 in response to a pair of tweets by Mr. Agrawal, explaining the company’s efforts to fight spam accounts.

It also included an image of a text message Mr. Musk sent Mr. Agrawal after Twitter sought on June 28 reassurances about Mr. Musk’s financing for the deal.

“Your lawyers are using these conversations to cause trouble,” Mr. Musk texted to Mr. Agrawal. “That needs to stop.”

Twitter noted that after Mr. Musk said he was terminating the deal, he sent tweets on Monday that Twitter suggested his requests about spam were part of a plan to force spam data into the public sphere.

“For Musk, it would seem, Twitter, the interests of its stockholders, the transaction Musk agreed to, and the court process to enforce it all constitute an elaborate joke,” the lawsuit said. — Reuters

Amy Winehouse biopic in the works, Sam Taylor-Johnson to direct

Amy Winehouse at the Eurockéennes of 2007 — EN.WIKIPEDIA.ORG/

LONDON — A feature film about late British singer Amy Winehouse is in the works, with Fifty Shades of Grey director Sam Taylor-Johnson at the helm of the biopic, production and distribution company Studiocanal has said.

Called Back to Black, the film will look at the life and music of the six-time Grammy Award winner, who died from alcohol poisoning at her north London home on July 23, 2011. Ms. Winehouse, who struggled with drink and drug problems through much of her career, was 27 years old.

“Studiocanal is gearing up to make Back to Black. Project is advancing with Sam Taylor-Johnson attached to direct the feature film on the life and music of Amy Winehouse,” Studiocanal said, adding a script had been written for the film.

“Back to Black is being made with full support from the Amy Winehouse estate.”

British filmmaker Taylor-Johnson is known for directing the first Fifty Shades of Grey film, an adaptation from the hit book trilogy, the drama A Million Little Pieces, as well as episodes for television series Gypsy and Solos.

Considered one of the most talented singers of her generation with hits including “Rehab” and “Back to Black,” Ms. Winehouse’s untimely death shook the music world.

Several documentaries about her have been made, the most recent narrated by her mother and airing on Britain’s BBC in 2021 to mark 10 years since the singer’s death.

A 2015 documentary AMY about Ms. Winehouse won director Asif Kapadia an Oscar, although at the time the singer’s father Mitch Winehouse called it misleading and said the family had disassociated itself from the film.

Industry publication Deadline said the search for the actor portraying Ms. Winehouse in the film would start in the coming weeks. — Reuters

SeedWorks renews partnership with Tarlac farmers’ coop for hybrid rice

SEEDWORKS Philippines, Inc. announced on Wednesday that it is renewing its partnership with Tarlac’s Caut Farmers Field School (FFS) Marketing Cooperative for the purchase, milling, and marketing of US 88 hybrid rice.

The agricultural research firm said the FFS, a marketing cooperative registered under the Cooperative Development Authority, will help link US 88 rice farmers with rice traders and millers.

US 88, a long-grain hybrid rice variety developed by SeedWorks, increases yield to about 15 metric tons per hectare in optimal conditions, according to the company.

“SeedWorks keeps its commitment to further empower local rice farmers in the countryside by helping link them with millers who can pay higher prices for the premium-quality rice harvests,” SeedWorks Philippines President Carlos L. Saplala said in a statement.

“We have successfully launched this program in 2021 and as promised, we are bringing this promising scheme to more farmers across the country.”

Its planned marketing efforts include linking millers and consumers to reduce intermediaries that add up to retail prices. It also aims to provide the packaging for milled US 88 rice in 25-kilogram sacks, which make the produce easier to sell through retailers and to end consumers.

“So far, the brand of commercial rice has been reaping praises from traders and consumers alike. US 88 rice is gaining popularity and demand\in the market as it is noted for its long grain and consistently soft quality when cooked, which also does not easily spoil, helping avoid unnecessary food wastage,” SeedWorks said.

In a separate media release, SeedWorks said that it is launching another alternative farming technique suitable for its TH-82 Tatag hybrid rice variety.

The firm held a dry-direct seeding technology demonstration in a rice farm in Malasiqui and San Carlos, Pangasinan on Wednesday.

“The rice farming demonstration will prove the reliability of TH-82 variety in bringing higher yields to farmers while significantly lowering the usual rice production costs — in irrigation and labor,” SeedWorks said.

Dry-direct seeding is a rice-planting technique designed to address scarcity in water especially in the uplands and other areas where water is scarce or irrigation is not sufficiently maintained.

“Through this field demo, we want every farmer to realize that growing hybrid rice may not require spending more. Through using SeedWorks’ TH-82 hybrid rice variety, farmers can still get high yield while spending less in production cost using dry-direct seeding technology,” Mr. Saplala added. — Luisa Maria Jacinta C. Jocson

Global regulators back ‘same risk, same regulation’ for stablecoins

LONDON — Major stablecoins must comply with the same safeguards as traditional forms of payments, global regulators said on Wednesday, tightening controls over a battered crypto sector.

Stablecoins are cryptocurrencies designed to have a stable value relative to traditional currencies, or to a commodity, to avoid the volatility that makes bitcoin and other digital tokens impractical for most commerce.

International Organization of Securities Commissions (IOSCO), a global body for securities regulators, and a committee at the Bank for International Settlements (BIS), a forum for central banks, said on Wednesday they had formally adopted proposals put out to public consultation last October.

The new guidance shows when existing payment sector rules should apply to large stablecoins, marking a major step forward in applying “same risk, same regulation,” they said.

“We expect the same level of robustness and strength in these aspects in systemically important stablecoin arrangements,” Ashley Alder, chair of IOSCO and CEO of Hong Kong’s securities regulator, said in a statement.

The guidance covers managing risks, governance and transparency standards.

“Recent developments in the crypto asset market have again brought urgency for authorities to address the potential risks posed by crypto assets, including stablecoins more broadly,” said Jon Cunliffe, chair of the BIS committee and deputy governor of the Bank of England.

TerraUSD stablecoin collapsed earlier this year, while crypto lender Voyager Digital filed for bankruptcy this month.

Bitcoin, the largest cryptocurrency, has slumped some 70% since its November record of $69,000.

Global regulators are set to go further in October when the Financial Stability Board, a global regulatory body which includes IOSCO, proposes “robust” rules for cryptocurrencies more generally.

Global watchdogs are playing catch up with the European Union which this month approved a groundbreaking law to regulate crypto markets, including stablecoins.

Britain is due to propose rules to regulate systemically important stablecoins this month as part of a draft law on reforming financial services and markets. — Reuters

Three teams bid to barge in winner circle in PBA D-League Aspirants’ Cup

ADALEM Construction-St. Clare aims to get a run going while three teams bid to barge into the winner’s circle in the PBA D-League Aspirants’ Cup. — PBA MEDIA

ADALEM Construction-St. Clare aims to get a run going while three teams bid to barge into the winner’s circle in the Philippine Basketball Association (PBA) D-League Aspirants’ Cup at the Smart Araneta Coliseum.

Motivated by a breakthrough win against Centro Escolar University (CEU), the Saints (1-1) eye a quick follow-up against winless AMA Online (0-2) at 10:30 a.m. as Apex Fuel-San Sebastian (0-1) and Builders Warehouse-Santo Tomas (0-1) shoot for maiden triumph at 12:30 p.m.

St. Clare and AMA Online are actually rivals in the National Athletic Association of Schools, Colleges and Universities (NAASCU), where the Saints have been stamping their class over their counterparts laced by five straight championships.

But coach Jinino Manansala is not keen on lowering his guard, especially after AMA’s gallant stand against no less than back-to-back NCAA champion Wangs Basketball @26-Letran.

To dodge a major upset, Mr. Manansala and the Saints will be banking on the leadership of NAASCU MVP Johnsherick Estrada, who punished the Scorpions with 19 points, five assists and two steals in a 20-point blowout.

AMA, for its part, is looking to ride on an impressive showing against Letran highlighted by a 10-point lead in the fourth quarter before running out of steam in a close 89-84 defeat.

Meanwhile, San Sebastian and Santo Tomas are out to atone for their 86-74 and 112-82 losses against Marinerong Pilipino and EcoOil-La Salle, respectively.

Marinerong Pilipino (2-0) and Letran (2-0) currently pace the eight-team D-League cast with La Salle (1-1), CEU (1-1) and St. Clare (1-1) on their coattails. — John Bryan Ulanday

Google launches fund for small, medium news organizations

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GOOGLE has launched an equity fund to support small and medium news organizations, it said in a statement on Tuesday.

The News Equity Fund, also known as the Fund for Equal News, will provide financial aid and opportunities for news organizations “whose primary focus is to serve underrepresented communities,” Google said.

“Google’s goal is to support inclusion, empower a diverse news ecosystem, and in particular, to support small and medium-sized publishers in publishing original journalism content to underrepresented audiences around the world,” it said.

The company said registration is open until July 21, 11:59 p.m. (Pacific Time).

It said eligible news organizations are independent newsrooms employing one to 50 full-time journalists that regularly produce original core news on underrepresented audiences.

These include for-profit and nonprofit traditional news organizations, digital natives, newsletters, podcasts, radio and/or TV broadcasters, and trade press associations whose members cover underrepresented groups, Google said.

Incorporated or registered associations or organizations, registered academic or nonprofit bodies for underrepresented journalists and organizations can also apply.

However, government-owned firms or those affiliated with or owned by a political party are not eligible.

Applicants must have been in full operation for at least a year and have a verifiable digital presence. These organizations must be located in eligible regions, which are: Asia Pacific, Europe, the Middle East and Africa, North America, the Caribbean, and Latin America.

If selected, the grant may be used for the payment of personnel for their work on the approved project; engineering costs and the purchase or licensing of any equipment, tools, hardware, software and other assets or materials needed for the project; and marketing expenses up to a maximum of 20% of the total funding granted.

Philippines falls further in global gender gap report

THE PHILIPPINES slipped two spots in the latest gender gap rankings released by the World Economic Forum (WEF), as the number of women participating in the labor force remained low amid the coronavirus pandemic. Read the full story.

Philippines falls further in global gender gap report

Dining In/Out (07/14/22)

Hendrick’s Gin holds pop-up bars

HENDRICK’S GIN now offers gin for cucumbers. Hendrick’s Cucumber Lemonade Stand pop-up goes to The After Hours Bar in Quezon City where the Cucumber Currency Exchange will return. On July 15-16 from 6 to 9 p.m., The After Hours Bar will accept cucumbers as legal tender, allowing guests to exchange a cucumber for a Hendrick’s Cucumber Lemonade. Those who wish to participate must be over 21 and have proof of identification, and only one drink per person can be redeemed. Each cucumber may only be exchanged for a single measure of Hendrick’s Cucumber Lemonade. Meanwhile, every purchase of two Hendrick’s cocktails will entitle customers to a complimentary glass of Hendrick’s Cucumber Lemonade and a Hendrick’s fan. The promotion is valid from 7 to 10 p.m. on July 15, 16, 22, 23, 29 and 30.

Seasonal menus, new restaurants at City of Dreams

CITY of Dreams Manila has opened new restaurants and highlights new-style Japanese, Filipino, and Southeast Asian seasonal menus this July. Japanese-Peruvian fine dining restaurant Nobu Manila is offering a new eight-course seasonal tasting menu at P6,210 per head, available until September. Haliya’s seasonal Alimango Festival menu is available until the end of July, and Asian hawker food-inspired restaurant Red Ginger also offers assorted Southeast Asian dishes, ranging from Malay-style prawn fritters to a Singaporean-style curry sandwich. Meanwhile, new restaurants have opened at The Shops at the Boulevard. The Roman-style pizzeria Rossi Pizza seats up to 72 guests and is open daily from noon to 9 p.m. Signature dishes include the Capricciosa pizza and Rossi’s carbonara. Mango Tree serves contemporary Thai food, with some menu highlights being the Stir-fried crab in curry sauce and the Steamed sea bass with lime sauce. The new Mango Tree outlet is open from 11 a.m. to 11 p.m. Sundays to Thursdays, and until midnight every Friday and Saturday. Diners on the lookout for the newest authentic Korean barbecue experience at the resort can head out to J. Park Garden and savor popular samgyeopsal with traditional grill-in-table in a modern setting. The restaurant is open daily from 9 a.m. to 3 a.m. Known for its ensaymada and cheese rolls, a new branch of the iconic Filipino café Mary Grace is also opening at The Boulevard. Café Mary Grace is open from 11 a.m. to 11 p.m., Sundays to Thursdays and from 10 a.m. to midnight every Friday and Saturday. For inquiries and reservations, call 8800-8080 or e-mail guestservices@cod-manila.com. For more information, visit www.cityofdreamsmanila.com.

Marco Polo Ortigas marks 8th year with dining offers

TO marks its eight years of service, the different Marco Polo restaurants present special offers to their diners. Café Pronto serves a Frozen Raspberry Chocolate Crunch Cake throughout July. The whole cake is available for P1,965. For the whole month of July, Cantonese restaurant Lung Hin is offering a 20% discount on its Whole Peking Duck. The Connect Lounge serves an elevated English or Asian Afternoon High Tea experience which includes savory snacks, sweet treats, and a choice of two glasses of Prosecco (P2,288) or Tropical Mimosa (P1,888) — available daily from 2:30 to 5:30 p.m. for July. Finally, guests can order signature cocktails, ranging from the free-flowing Classic Mojito (P998) and Raspberry Margarita (P1,118) to cocktails by the glass — Mabuhay Manila (P320) and Coffee Martini (P200). These will be available Wednesdays to Saturdays from 5 to 7 p.m. at Vu’s Sky Bar and Lounge. For more information about Marco Polo Ortigas, Manila, its promotions, and available stay packages, call 7720-7777 or visit marcopolohotels.com.

Hearty comfort food from Newport City

FOR the entire July, Newport City’s two main wings are serving up hearty dishes fit for every mood. At the Newport Grand Wing, Casa Buenas is doing a unique take on the classic Pinoy soup with Sopa de Pollo for P488 net per serving. At Silk Road in the gaming area, bowls of Claypot Congee are available in chicken, pork, or fish variants for P228 net. Over at the Newport Garden Wing, on the second floor, Happy 8 is serving Chicken Abalone Soup for P888 net. At the ground floor, the Garden Wing Cafe’s Hearty Bowl vegetable and corn soup is available for P250 net. Victoria Harbour Cafe within the Newport Garden Wing’s ground floor gaming area offers Black Chicken Soup for P350 net. The Asian Veggie Stir-fry in Asian sauce is available for P280 net. Throughout July, Hilton Manila’s Hua Yuan Brasserie Chinoise is offering special Clay Pot Delicacies, while Oori at Sheraton Manila treats guests to a Healthy Ginseng Chicken with Abalone Soup. Hotel Okura Manila’s Japanese fine dining restaurant Yamazato has a traditional Shabu Shabu Menu. Indulge in a luxurious Double-boiled Abalone with Dates and Coconut Broth and other traditional Cantonese dishes at Marriott Manila Hotel’s signature Chinese restaurant, Man Ho. For more information on the latest offers at Newport City, visit www.rwmanila.com.

Krispy Kreme marks 85 with new treats

THIS year, Krispy Kreme celebrates its 85th birthday by launching three New Original treats. The New Chocolate Birthday Drip Cake is available until July 31 and can be bought per piece or in half-dozen, dozen, and double dozen boxes. Prices start at P55. Additionally, Krispy Kreme is selling a limited-edition Mini Chocolate Glaze  doughnut with Birthday Sprinkles, with the prices starting at P215 for a box of 16. Minis are also available in Original Glazed flavor. Also being released is a new drink called the Mixed Berry Birthday Chiller, which will only be available for a limited time, at an introductory price of P180 for a 16 oz. cup.

MZ Skin and Madame Fù offer afternoon tea

ASIAN fusion restaurant Madame Fù collaborates with MZ Skin to create “The Luminosity” Afternoon Tea experience, inspired by the luxury skincare brand. Guests who order the MZ Skin x Madame Fù “The Luminosity” Afternoon Tea will receive an exclusive gift set including Soothe & Smooth Hyaluronic Brightening Eye Complex (mini-size), Rest & Revive Restorative Placenta & Stem Cell Night Serum (mini-size) and a Glow Boost Ampoule. The MZ Skin x Madame Fù “The Luminosity” Afternoon Tea will be available to order in Madame Fu Cafe in Central District, Hong Kong from July 1 to Aug. 31. For reservations, e-mail Reservations@madamefu.com.hk. For details visit www.madamefu.com.hk.

AI-enabled platform allows remote management of construction projects

REAL ESTATE consultancy firm JCV & Associates Project Management & Development, Inc. (JCVA) and Digiscript Philippines, Inc., a reality capture solutions provider, recently inked a partnership to offer a platform that allows construction companies to conduct remote site inspections.

“With our partnership with JCVA, OpenSpace empowers stakeholders by bringing builders, engineers, and developers to manage their own projects using artificial intelligence (AI) in the construction industry,” Digiscript Philippines President Conrad A. Alampay said during a virtual briefing on Wednesday.

The platform allows users to perform complete job site documentation to remotely manage and track construction progress.

Mr. Alampay said that OpenSpace uses a wearable 360 degree-camera mounted on top of a hard hat, which is enabled by a mobile application.

“As you capture the job site, all photos and videos are sent to the cloud. Then, the data are analyzed and automatically stitched to the floor plan. All of these are automated and can be deployed very quickly,” he noted.

“You don’t have to travel to the site across the country. You can now, near real-time, see what is happening on the ground. This improves project management,” he added.

Digiscript is the official channel partner of OpenSpace in the Philippines while JCVA is the first project management company to offer the platform locally.

According to Mr. Alampay, there are already local projects using the platform for their documentation.

“In the Philippines, about 75 projects are already using this (platform) at least,” he said.

For his part, JCVA Founder and Chief Executive Officer Jason Romeo C. Valderrama said: “It is an investment. The benefits far outweigh the costs. For large-scale projects, we’re actually reaping savings because we don’t need to deploy a lot of engineers on-site to physically manage the site. We just use OpenSpace.”

“We’re able to supplant the cost of one site engineer by subscribing to the OpenSpace platform per project or per site,” he added.

OpenSpace is a technology company based in San Francisco, California, with Digiscript serving as the sole provider in the Philippines. — Revin Mikhael D. Ochave

How PSEi member stocks performed — July 13, 2022

Here’s a quick glance at how PSEi stocks fared on Wednesday, July 13, 2022.

Peso rebounds as oil drops on fears of global slowdown

BW FILE PHOTO

THE PESO rebounded on Wednesday as concerns over a possible global economic slowdown drove oil prices down overnight.

The local unit ended trading at P56.26 per dollar on Wednesday, appreciating by 11 centavos from its Tuesday close of P56.37.

Still, year to date, the local unit has weakened by 10.31% or by P5.26 from its close of P51 versus the dollar on Dec. 31, 2021.

The peso opened Wednesday’s session stronger at P56.31 against the dollar. Its weakest showing was at P56.43, while its intraday best was at P50.23 versus the greenback.

Dollars exchanged dropped to $994 million on Wednesday from $1.39 billion on Tuesday.

The peso strengthened after the sharp decline in global oil prices for the first time in three months, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

This could lead to more rollback in local fuel pump prices and could ease inflationary pressures, as prices of other global commodities also eased on concerns over possible US recession, Mr. Ricafort said.

“The peso appreciated following the substantial decline in global oil prices amid reports of new lockdowns in China,” a trader said in an e-mail.

Brent oil futures closed under the $100-per-barrel level on Tuesday as investors sold crude on concerns that aggressive interest rate hikes by the US Federal Reserve to curb inflation will result in an economic slowdown that will hit oil demand.

Brent crude futures settled $7.61, or 7.1% lower, at $99.49 a barrel, its lowest since April 11. US West Texas Intermediate (WTI) crude was down $8.25, or 7.9%, at $95.84, also the lowest in three months.

On Wednesday, oil prices paused their overnight declines. Brent crude was little changed at $99.60 a barrel with US WTI crude at $95.89.

For Thursday, the trader said the peso may weaken anew due to potentially faster US inflation, which could give the Federal Reserve another reason to continue its aggressive rate hike path.

Both the trader and Mr. Ricafort gave a forecast range of P56.15 to P56.35 per dollar.

CENTRAL BANK ACTION
Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla last week said the central bank is prepared to raise benchmark rates by 50 basis points (bps) at their Aug. 18 meeting to keep inflation in check after the peso on Thursday breached the P56 level against the dollar for the first time in more than 17 years.

He said the US central bank’s hawkish stance has placed “strong depreciation pressures” on global currencies such as the peso, which adds to inflation risks.

Mr. Ricafort on Wednesday said it remains to be seen what the BSP will do to support the peso, which is inching closer to its record low of P56.45 a dollar set on Oct. 14, 2004. On Tuesday, the peso hit this all-time low as its worst showing intraday, but recouped some of its losses as the session ended.

“Let us see how they would use their toolkit related to the exchange rate vis-a-vis the inflation-targeting framework since 2001 and the price stability mandate,” he said.

Former Socioeconomic Planning chief Ernesto M. Pernia said in an interview with One News PH that the BSP should continue raising rates to temper inflation after the headline print hit 6.1% in June, bringing the six-month average to 4.4%, above the central bank’s 2.4% target.

“Our central bank interest rat … it’s usually just 2%. It was not very low, but they kept it at low because they wanted the economy to really perk up because of the pandemic. But now that inflation is rearing its ugly head, it’s already 6.1% inflation rate, which is 2.1% higher than the [target] band… It’s time for the central bank to really be raising interest rates to dampen inflation,” Mr. Pernia said.

“Some people say that … the central bank raised interest rates too late. It should have been done sometime in February when the inflation rate was already beginning to peak. It’s only recent that the central bank decided to raise policy rates by 25 basis points. The next one is likely to be 50 basis points,” he added.

Mr. Pernia said inflation has an “overarching” impact, with the poor especially seen to be adversely affected by rising prices. — K.B. Ta-asan with Reuters

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