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Apple hits out at Meta’s numerous interoperability requests

APPLE.COM

BRUSSELS – Apple on Wednesday hit out at Meta Platforms, saying its numerous requests to access the iPhone maker’s software tools for its devices could impact users’ privacy and security, underscoring the intense rivalry between the two tech giants.

Under the European Union’s landmark Digital Markets Act that took effect last year, Apple must allow rivals and app developers to inter-operate with its own services or risk a fine of as much as 10% of its global annual turnover.

Meta has made 15 interoperability requests thus far, more than any other company, for potentially far-reaching access to Apple’s technology stack, the latter said in a report.

“In many cases, Meta is seeking to alter functionality in a way that raises concerns about the privacy and security of users, and that appears to be completely unrelated to the actual use of Meta external devices, such as Meta smart glasses and Meta Quests,” Apple said.

Meta Quest is Meta’s virtual reality headset, part of the company’s ambition to own the computational platform that powers virtual reality (VR) and mixed reality (MR) devices.

“If Apple were to have to grant all of these requests, Facebook, Instagram, and WhatsApp could enable Meta to read on a user’s device all of their messages and emails, see every phone call they make or receive, track every app that they use, scan all of their photos, look at their files and calendar events, log all of their passwords, and more,” Apple said.

It pointed to Meta’s privacy fines in Europe in recent years as a cause of concern.

“What Apple is actually saying is they don’t believe in interoperability,” a Meta spokesperson said in a statement.

“Every time Apple is called out for its anticompetitive behavior, they defend themselves on privacy grounds that have no basis in reality.”

Separately, the European Commission – which in September said it would spell out how Apple must open up to rivals – published its preliminary findings on the issue late Wednesday evening, giving individuals, companies and organizations until Jan. 9 to provide feedback on its proposed measures for Apple.

The measures would require Apple to provide a clear description of the different phases, deadlines and the criteria and considerations that it would apply or consider in assessing interoperability requests from apps developers.

Apple should also provide developers regular updates and give and receive feedback regarding the effectiveness of its proposed interoperability solution while there would be a fair and impartial conciliation mechanism to address technical disagreement with Apple.

The Commission also set out the steps for Apple to provide interoperability with all functionalities of the iOS notifications feature available to Apple Watch, Apple Vision Pro and any future Apple connected physical devices to its rivals as well.

A decision by the EU executive, which acts as the competition watchdog in the 27-country bloc, on whether Apple complies with the DMA’s interoperability provision is expected in March next year. – Reuters

US considers ban on China’s TP-Link over security concerns, WSJ reports

ETHERNET cable wires are connected to an internet router modem in this illustration photo taken on April 17, 2024. — JAAP ARRIENS/NURPHOTO VIA REUTERS CONNECT

U.S. authorities are considering a ban on China’s TP-Link Technology Co over national security concerns after its internet routers were linked to cyber attacks, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

In August, two U.S. lawmakers urged the Biden administration to probe the Chinese router-manufacturer and its affiliates over fears their Wi-Fi routers could be used in cyber attacks against the U.S., according to a letter seen by Reuters.

The Commerce, Defense and Justice departments have opened separate probes into the company, with authorities targeting a ban on the sale of TP-Link routers in the U.S. as early as next year, the report said.

An office of the Commerce Department has even subpoenaed the company while the Defense Department launched its investigation into Chinese-manufactured routers earlier this year, the newspaper reported, citing people familiar with the matter.

Shares of Netgear, a San Jose-based home networking company and a TP-Link rival, jumped more than 12% on Wednesday following the report.

Last year, the U.S. Cybersecurity and Infrastructure Agency said TP-Link routers had a vulnerability that could be exploited to execute remote code.

The U.S. Department of Justice and the U.S. Department of Commerce declined to comment. TP-Link and the Department of Defense did not immediately respond to a Reuters request for comment.

The move comes amid mounting concerns in Washington that Beijing could exploit Chinese-origin routers and other equipment in cyber attacks on American governments and businesses.

The U.S., its allies and Microsoft last year disclosed a Chinese government-linked hacking campaign dubbed Volt Typhoon. By taking control of privately owned routers, the attackers sought to hide subsequent attacks on American critical infrastructure. – Reuters

Britain pledges new $286 million defense package for Ukraine

FREEPIK

LONDON – Britain on Thursday said it would send an additional 225 million pounds ($286 million) of military equipment to Ukraine to help it in the war against Russia.

 

WHY IT’S IMPORTANT

Ukraine has urged allies to bolster it both on the battlefield and diplomatically before any potential talks with Russia. As the war approaches its third year, Ukrainian troops are weary and outnumbered along a 1,170-km (727-mile) frontline.

 

BY THE NUMBERS

The package comprised of:

– 92 million pounds for equipment to bolster Ukraine’s navy, including small boats, reconnaissance drones, uncrewed surface vessels, loitering munitions and mine countermeasure drones.

– 68 million pounds for air defense equipment including radars, decoy land equipment and counter-drone electronic warfare systems.

– 26 million pounds to provide support and spare parts for systems previously delivered to Ukraine.

– 39 million pounds to provide more than 1,000 counter-drone electronic warfare systems and for joint procurement of respirators and equipment to enhance the protective capabilities of Ukraine’s Armed Forces.

Britain also said it would offer more military training to Ukraine.

 

KEY QUOTE

“The brave people of Ukraine continue to defy all expectations with their unbreakable spirit,” British defense minister John Healey said in a statement. “But they cannot go it alone – which is why the UK will step up our international leadership on Ukraine throughout 2025.” – Reuters

Bank of England to keep rates steady as price pressures linger

WIKIMEDIA.ORG

LONDON – The Bank of England looks set to hold interest rates at 4.75% on Thursday, despite signs of a slowing economy, as persistent inflation pressures limit it to a “gradual” approach towards cutting borrowing costs.

All 71 economists polled by Reuters said rates would stay unchanged for now. Most expect a quarter-point cut only on Feb. 6 after its next meeting, followed by three more cuts by the end of 2025.

Financial markets are much less certain about the extent of rate cuts next year, following data on Tuesday that showed an unexpected acceleration of wage growth. Investors late on Wednesday priced in just a 50% chance of a rate cut in February and only two cuts in 2025 as a whole.

By contrast, the European Central Bank has cut rates by 1 percentage point in 2024 and is expected by markets to lower them by another percentage point in 2025 as the euro zone economy is hit by political turmoil and the risk of a U.S. trade war.

The divergence in interest rate outlooks has pushed the difference in yields between British and German 10-year government bonds to its widest since 1990.

While the U.S. Federal Reserve only expects to lower rates twice next year, its rate cut on Wednesday added up to a cumulative 1 percentage point of loosening in 2024, double the speed of the BoE so far.

Governor Andrew Bailey this month reaffirmed the BoE’s message that “a gradual approach to removing policy restraint remains appropriate”.

The BoE’s November forecasts – which showed inflation staying just above its 2% target until 2027 – were based on market expectations of four rate cuts next year.

BoE officials have not been explicit about whether they view this pace of cuts as the most likely scenario.

Economists expect the BoE to stick to its vaguer message of gradualism in December’s policy statement.

“We think it’s too early for the BoE to pre-commit to a sustained cutting cycle or to conclude that risks to inflation returning sustainably to the 2% target in the medium term have dissipated,” Bank of America analysts said in a note to clients.

Most economists polled by Reuters expect an 8-1 Monetary Policy Committee vote to keep rates unchanged. Swati Dhingra, who has called for faster cuts, is seen as the likeliest dissenter.

 

INFLATION AND WAGE GROWTH TOO HIGH

British consumer price inflation – which peaked at a 41-year high of 11.1% in October 2022 – fell below the BoE’s 2% target for the first time in three and an half years in September, but rose to 2.6% in November.

That exceeded the BoE’s own forecast of 2.4% and was the highest rate among the Group of Seven advanced economies. Services price inflation, which the BoE views as a better guide to medium-term price pressures, held at 5.0%.

The bigger concern is wage growth, which hit an annual 5.2% in the three months to October – well above the 3% rate most MPC members view as consistent with 2% inflation.

The BoE is watching to see if finance minister Rachel Reeves’ decision to load an extra 25 billion pounds ($32 billion) of employment taxes on businesses leads to more price rises or to cuts to jobs and pay.

Business sentiment has tumbled since Reeves’ Oct. 30 budget, and economic output fell for two consecutive months for the first time since 2020.

However, most economists say it is too early to know if this slowdown will put much downward pressure on inflation.

“We don’t think there is enough in the data to shift the MPC from its cautious, gradual tone,” RBC economist Cathal Kennedy said, adding that new BoE forecasts at its February meeting would be key. – Reuters

NG eyes euro, dollar bond issuance

Rolled euro banknotes are placed on US dollar banknotes in this illustration taken on May 26, 2020. — REUTERS/DADO RUVIC/ILLUSTRATION

THE GOVERNMENT is looking to issue US dollar- or euro-denominated bonds in the first half of 2025, the Finance chief said.   

“[We’ve approved] a potential double bond — US dollar and/or euro,” Finance Secretary Ralph G. Recto told reporters on Tuesday.

He added the government will look to raise at least P300 billion from the issuance, which is the benchmark size of foreign issuances.

The Philippines’ last dollar bond issuance was in August this year. It raised $2.5 billion from the issuance of triple-tranche, US dollar-denominated global bonds.

In September, National Treasurer Sharon P. Almanza said the National Government (NG) will no longer push through with a planned euro bond issuance this year.

The National Government last issued euro bonds in April 2021, raising €2.1 billion (P122.4 billion) amid the coronavirus pandemic.

The government has $500 million yet to be raised from the international debt market this year from its $5-billion external borrowing plan.

Mr. Recto on Tuesday said the government is also planning to issue Sukuk and Samurai bonds next year.

“I think it’s an opportune time that the yen is depreciating so it’s favorable for us. If we borrow from them, they’re depreciating, you know. But more importantly, I think you want to be on the radar screen of investors from Japan,” he said.

The Philippines last issued Samurai bonds in April 2022, raising ¥70.1 billion.

Mr. Recto said there is also demand from Middle East investors.

“Because there’s an appetite from the Middle East. You want more people buying our bonds, our notes, and so on and so forth. If they’re willing to finance government operations, why not?” he added.

The government first issued Islamic debt in December 2023, raising $1 billion from the sale of 5.5-year dollar-denominated Sukuk bonds.

The government set its borrowing program at P2.55 trillion for 2025, of which P507.41 billion will come from gross external borrowings.

The government could benefit from tapping the foreign debt market next year as the US Federal Reserve’s further easing is expected to reduce borrowing costs, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

However, the benefits could be offset by a stronger dollar and higher US Treasury yields, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.

“Timing is key in the issuance as the greenback and the 10-year US Treasury yields continue to rise. A Trump presidency is supportive of the greenback and 10-year yields,” Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas likewise said in a Viber message.

Mr. Rivera added that demand for bond issuances from the Philippines could be dampened due to heightened global economic uncertainty brought by Mr. Trump’s proposed trade policies and potential tariffs on imports. — Aaron Michael C. Sy

BSP may slash rates by 75 bps in 2025 — Recto

FINANCE SECRETARY RALPH G. RECTO — PCO

THE BANGKO SENTRAL ng Pilipinas (BSP) could cut benchmark interest rates by 75 basis points (bps) in 2025, Finance Secretary Ralph G. Recto said.

Mr. Recto, who previously projected 100 bps of cuts in 2025, told reporters the pace of easing will depend on various factors, such as inflation and the US Federal Reserve’s next moves.

“It depends also on what happens, what the Fed does. So, we have to wait for the inflation numbers, wait for what the Fed does, I suppose. But more or less, my expectation is 75 bps,” he said.

BSP Governor Eli M. Remolona, Jr. had earlier signaled that the Monetary Board could deliver rate cuts in the 100-bp range next year.

On Wednesday, the US Federal Reserve was expected to lower rates by 25 bps, which would bring the policy rate to the 4.25%-4.5% range. However, the pace of the Fed’s easing cycle remains uncertain as US President-elect Donald J. Trump assumes office in January.

Philippine headline inflation stood at 2.5% in November, bringing the 11-month average to 3.2%. This is still well within the BSP’s 2-4% target band.

Mr. Recto, who is also a member of the Monetary Board, said there is a “great possibility” that the central bank would deliver a third straight 25-bp cut at its final policy meeting for the year today (Dec. 19).

“There is a great possibility, [and] probability. I agree with the market consensus of a 25-bp (decrease),” Mr. Recto said.

A BusinessWorld poll conducted last week showed that 13 out of 16 analysts expect the Monetary Board to reduce the target reverse repurchase rate by 25 bps at its meeting today.

If realized, this would bring the benchmark rate to 5.75% from the current 6%, or a total of 75 bps worth of cuts by the end of 2024.

If the BSP delivers another 75 bps worth of cuts next year, it would bring the key rate to 5% in 2025.

The central bank began its easing cycle in August with a 25-bp cut. It delivered another 25-bp reduction in October.

In a separate report, Capital Economics said it sees up to 100 bps worth of rate cuts in 2025.

“With growth set to moderate and inflation likely to remain low, we expect a further 100 bps of cuts in 2025. This will take the policy rate to 4.75% at the end of 2025,” it said in a report released on Dec. 13.

Capital Economics said the strength of gross domestic product (GDP) growth is “unlikely to last.”

Economic managers earlier this month revised their GDP target to 6-6.5% this year from 6-7% previously after weak third-quarter growth.

The economy grew by an annual 5.2% in the July-to-September period, the weakest growth in five quarters or since the 4.3% expansion in the second quarter of 2023.

For the first nine months of the year, Philippine GDP growth averaged 5.8%, slower than the 6% print a year ago.

“Consumption is likely to be boosted by the drop in inflation and further cuts to interest rates, but we doubt the pace of consumption growth in Q3 is sustainable. What’s more, growth in remittances and exports will slow, amid weaker global growth,” Capital Economics said.

It expects inflation to remain low in the next quarters “due to a combination of weaker economic growth and a decline in food inflation.”

The central bank expects inflation to settle at 3.1% this year. — A.R.A. Inosante

Fitch flags growth risks from Marcos-Duterte rift

Buildings are lit up at the Rockwell Center amid the holiday season, Dec. 17, 2024. — PHILIPPINE STAR /MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE Philippine economy is seen to continue accelerating but will still fall short of government’s targets this year and in 2025, according to a report by Fitch Ratings.

Fitch also noted that political tensions between the country’s top officials, as well as the incoming Trump administration’s policies, could pose risks to the country’s growth prospects.

“GDP (gross domestic product) growth has slowed since the post-COVID-19 (coronavirus disease 2019) pandemic rebound in activity, but Fitch Ratings expects the economy to expand by 5.7% in 2024,” it said.

Fitch also sees GDP expanding by 5.9% in 2025.

Both forecasts are below the government’s 6-6.5% and 6-8% targets for this year and in 2025, respectively.

“We expect growth to pick up to 6.2% by 2026, on monetary easing, infrastructure spending and reforms to foster trade and investment,” it added.

This projection would fall near the low end of the government’s 6-8% growth target for 2026.

Fitch also flagged risks stemming from the rift between President Ferdinand R. Marcos, Jr. and Vice-President Sara Z. Duterte-Carpio.

“Domestic political conflicts, which have escalated ahead of the May 2025 midterm elections, could, if sustained, weigh on macroeconomic and fiscal performance, in our view,” it said.

Two separate impeachment complaints have been filed against Ms. Duterte-Carpio, citing betrayal of public trust, bribery, and plunder, arising from an ongoing probe into the use of confidential funds at the Office of the Vice-President and at her former Cabinet post, the Department of Education.

“Fierce public disagreements have erupted between President Marcos and Vice-President Sara Duterte and their families,” Fitch said.

“Ms. Duterte is under investigation for threats to the President and for misuse of public funds. The support of Ms. Duterte and her father, former president Rodrigo Duterte, was instrumental in President Marcos’ landslide win in the 2022 election.”

Meanwhile, Fitch noted that US President-elect Donald J. Trump’s proposed policies may pose risks for the Philippines.

“Further strengthening of the US dollar from trade protectionism could pressure the Philippine peso, which has already depreciated by nearly 5% in (the 11-month period), and on Philippines’ inflation, although weaker global growth and diversion of Chinese exports could offset this to some extent,” it said.

Last month, the peso fell to the P59-per-dollar level twice.

Fitch said the Philippines would also be vulnerable to changes in US immigration policy, “given the importance of remittances for domestic consumption.”

The US President-elect has proposed to implement stricter border controls as part of his promise to crack down on illegal immigrants.

The US accounted for 41.2% or the biggest share of the Philippines’ overall cash remittances in the 10-month period, BSP data showed.

Meanwhile, the credit rater expects inflation to remain manageable, which would allow the BSP to further loosen monetary policy.

Headline inflation averaged 3.2% in the 11-month period. The central bank expects full-year inflation to settle at 3.1%.

“We forecast inflation to stay around these levels in 2025-2026, leading to a further 100 bps of rate cuts in 2025,” Fitch said.

A BusinessWorld poll conducted last week showed that 13 out of 16 analysts expect the Monetary Board to reduce the key rate by 25 bps at its final meeting of the year.

If realized, the BSP would have reduced rates by a total of 75 bps at end-2024, bringing the benchmark rate to 5.75%.

“A credible inflation-targeting framework and flexible exchange-rate regime contribute to a sound economic policy framework and support the country’s rating.”

In June, Fitch Ratings affirmed the country’s long-term foreign currency issuer default rating at “BBB” and retained its “stable” outlook.

DEFICIT, DEBT
Meanwhile, Fitch Ratings forecasts the central government’s fiscal deficit to settle at 5.7% of GDP this year and narrow to 4.9% of GDP by 2026.

“Our forecasts are wider than targeted in the government’s fiscal program, but still represent an improvement from deficits of 6.2% of GDP in 2023 and a peak of 8.6% in 2021,” Fitch said.

“Our narrower general government deficit forecast of 4.4% of GDP for 2024 reflects social security and local government surpluses,” it added.

Latest data from the Treasury showed that the deficit-to-GDP ratio fell to 5.1% at end-September from 5.7% a year earlier and 6.2% at the end of last year.

Meanwhile, the debt-to-GDP ratio is also seen to further decline.

“Central government gross debt reached 62% of annualized GDP in (the nine-month period), up from about 60% at end-2023.”

“Debt/GDP is likely to fall towards the yearend as issuance activity subsides, as in the past, and remains consistent with our central government debt forecast of 61% of GDP by end-2024.”

The National Government’s debt as a share of GDP stood at 61.3% at the end of the third quarter. This was higher than the year-earlier 60.2% and the 60.1% posted at end-2023.

The threshold considered by multilateral lenders to be manageable for developing economies is 60%.

The government seeks to bring this to below 60% by 2028.

Marcos postpones budget signing amid backlash

President Ferdinand R. Marcos, Jr. reviews the proposed 2025 national budget with his economic managers in this photo provided by the Presidential Communications Office. — COURTESY OF PRESIDENTIAL COMMUNICATIONS OFFICE

By Kyle Aristophere T. Atienza, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. has postponed the signing of the proposed 2025 national budget that was originally scheduled for Dec. 20, according to his office.

The postponement was announced just as workers’ groups staged a protest near Malacañang against what they called as the “most corrupt” spending plan in Philippine history.

Executive Secretary Lucas P. Bersamin said in a statement on Wednesday that the delay in the signing would “allow more time for a rigorous and exhaustive review of a measure that will determine the course of the nation for the next year.”

“While we cannot yet announce the date of the signing, we can now confirm that certain items and provisions of the national budget bill will be vetoed in the interest of public welfare, to conform with the fiscal program, and in compliance with laws,” he added.

Mr. Marcos held a meeting on Wednesday afternoon with his economic managers to ensure next year’s budget is aligned with key development priorities, according to the Presidential Communications Office.

Present during the meeting were Finance Secretary Ralph G. Recto, Budget Secretary Amenah F. Pangandaman, Public Works Secretary Manuel M. Bonoan, and National Economic and Development Authority Secretary Arsenio M. Balisacan. No other details were available.

Mr. Marcos on Monday said he’s not keen on issuing a line-item veto, which is allowed by the 1987 Constitution in bills related to appropriations or tariffs.

Major issues hounding the P6.35-trillion national budget for next year are the cut in the Department of Education’s (DepEd) budget and the removal of state subsidy for the Philippine Health Insurance Corp. (PhilHealth), the key agency in implementing the Universal Health Care program.

In the bicameral conference committee report ratified by Congress, the funding for DepEd and its agencies was cut by P11.15 billion, while PhilHealth will not receive its P74-billion government subsidy amid concerns on its failure to use its reserves in the past years.

DepEd, in particular, was denied its proposed P10-billion funding for its computerization program for 2025 due to its failure to spend previous budgets for a similar program as early as 2022.

It reported an obligation rate of 41.9% as of August, ranking 11th among government agencies in terms of budget utilization. Still, the rate is still higher than that of Congress, which had the lowest obligation rate at 8.8% but has received a P16.35-billion increase in the bicam’s version.

Anthony C. Leachon, a health reform advocate who had worked with the Department of Health (DoH) in the first year of the Marcos administration, said the President had likely “felt the mounting pressure from the civil society, business sector and other stakeholders and the public interest is paramount.”

“What’s the legacy of (Mr. Marcos) as a president if he would turn a blind eye,” he said. “I believe he has been misguided by lawmakers who wanted to shift the formal funding for PhilHealth for pork barrel.”

Some economists have discussed in public fora the implications of removing the subsidy for PhilHealth, which they said had assets lower than its liabilities.

“(Mr. Marcos) stands at a crossroads and his decision on this budget will define his character and presidency,” Mr. Leachon said. “He should veto the 2025 GAA (General Appropriations Act) and prioritize the health and dignity of the Filipino people.”

Senator Mary Grace Natividad S. Poe-Llamanzares, who was part of the bicam, said the President’s decision to postpone the budget signing is “a sign of a healthy democracy.”

“We have to support the checks and balances of our budgetary process,” she said in a Viber message. “I believe his economic managers are giving the President the best advice possible given the situation.”

Speaking to reporters on Monday, Mr. Marcos said PhilHealth has “sufficient funds to carry on” despite the removal of state subsidy.

‘USELESS’
Public finance expert Zyza Nadine Suzara said the President should restore the funding for all the development programs that were cut from the budgets of DepEd, Department of Social Welfare and Development (DSWD), DoH, and the Commission on Higher Educations, among “many others.”

“But the way to do that is not through an ‘assessment’ with department heads or a presidential veto. Neither an assessment nor a direct veto will cure the grave mistakes of the bicam,” she said in an X message.

“This process will not restore the slashed funds from the various major departments, and most especially, the line items that were struck down,” she added.

The DPWH’s allocation in the Congress-approved budget rose by P288 billion from the initial proposed P1.1-trillion funding.

As the agency responsible for most of the government’s flagship infrastructure projects became a net gainer, agencies responsible for key social services faced massive cuts.

The budget of DSWD declined by P95 billion from its initial proposed P217.3-billion funding, while that of DoH fell by P25.7 billion from P247 billion.

Ms. Suzara said the President can only cure the budget by returning the ratified budget to the bicam and asking them to “reconvene so that they can swiftly remedy the most corrupt and anti-poor budget we have ever had.”

“They should prioritize the needs of taxpayers and not their personal political ambitions.”

Enrico P. Villanueva, who teaches money at the University of the Philippines Los Baños, said the massive budget increase for DPWH is highly questionable as only 11 or 6% of the 186 flagship infrastructure projects of the government are expected to be ongoing by 2025 and only 51 of them are to be funded by the GAA.

Eighty-six out of the 186 flagship projects are funded by official development assistance, while 43 of them are under the private-public partnership scheme, he added.

“Legislators cited the low budget utilization rate of DepEd and PhilHealth as basis for reducing their budget, but these same legislators also castigated DPWH for its low budget utilization rate at 58% in 2023 and ineffective flood control projects,” Mr. Villanueva pointed out.

Meanwhile, the Nagkaisa Labor Coalition, which held an indignation protest near Malacañang on Wednesday, dubbed the proposed 2025 national budget as the “most corrupt” spending plan in the country’s record, citing the diversion of funds to patronage-driven programs such as the Ayuda sa Kapos ang Kita program and the Medical Assistance for Indigent and Financially Incapacitated Patients program.

Lawmakers, which are mandated by the 1987 Constitution to legislate laws, have been present in the distribution of these cash-aid programs.

Nagkaisa Chair and Federation of Free Workers President Jose Sonny Matula said the government is “using workers’ own contributions against them while leaving them burnt to a crisp.”

“Perceptions by the general public that basic services are being taken away from citizens would lead to an increase in public protests, so it is important the President is aware of the needs of the populace,” said Ateneo School of Government Dean Philip Arnold “Randy” P. Tuaño.

Absolut Vodka & SPRITE Ready-To-Drink Alcoholic Cocktail makes its exciting debut in the Philippines

No plan? No problem, as Absolut Vodka & SPRITE transforms the Philippines pulling off for the ultimate, unplanned hangout — celebrating the arrival of the new alcoholic ready-to-drink (ARTD) cocktail in the country: Absolut Vodka & SPRITE.

Highlighting that the pre-mixed alcoholic cocktail is the perfectly planned mix for life’s greatest unplanned moments, Absolut Vodka & SPRITE is set to instigate spontaneous hangouts with friends, without the need for wristbands, dress code, or formal invitation this season.

Bringing together two iconic brands that have grown to have a global footprint, the new pre-mixed alcoholic cocktail is made with the perfect mix of Absolut Vodka’s full-bodied, smooth character with the highly refreshing lemon and lime flavor of SPRITE. Truly, the perfect blend of premium quality and refreshing taste has arrived.

Mark Dee, Senior Director of Frontline Marketing at the Coca-Cola Company for ASP East Region, shares, “In today’s world where planning dominates, Absolut Vodka & SPRITE encourages people to relish life’s unplanned moments. We’re thrilled to bring the ‘Planned for the Unplanned’ campaign to life, offering our adult consumers a unique and interactive experience. We hope that our consumers across the Philippines will be inspired to embrace the unexpected and spark spontaneous gatherings with friends throughout the season and beyond.”

This innovative new beverage brings together the smooth sophistication of Absolut Vodka with the refreshing crisp, lemon-lime zest of SPRITE. Conveniently pre-mixed and packaged in a sleek 320mL can with a 7% ABV, it is designed for those spontaneous moments and social gatherings, ensuring you’re always ready to enjoy a perfectly balanced alcoholic cocktail.

Debasree Dasgupta, VP Global Marketing, Absolut Vodka added, “We’re delighted to see the next iteration of the Absolut Vodka & SPRITE journey, with the launch of this campaign platform. Absolut Vodka has always been the key player for the perfect mix in any social occasion, so inviting consumers to try Absolute Vodka & SPRITE while enjoying their spontaneous unplanned hangouts with friends couldn’t be truer to our brand.”

Discover the Perfect Mix

The Absolut Vodka & SPRITE Ready-To-Drink Alcoholic Cocktail is available in select stores in Metro Manila and will soon roll out to other areas nationwide. Clear responsibility symbols on the cans indicate that the drink is to be enjoyed only by consumers of legal purchasing age. Both The Coca-Cola Company and Pernod Ricard are committed to adhering to responsible marketing practices.

Whether planning a gathering or embracing an unplanned moment, the Absolut Vodka & SPRITE Ready-To-Drink Alcoholic Cocktail offers the perfect blend of premium taste and convenience for only PHP 55 SRP at supermarkets and PHP 65 SRP at convenience stores. It is also available at the official Coca-Cola Flagship Store on Lazada: https://s.lazada.com.ph/a.jbn.

To know more about our responsible marketing practices, and what’s the latest on Absolut Vodka & SPRITE, follow us on Facebook, Instagram, or visit www.coca-cola.com/ph. Always drink responsibly.

 

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Aviation growth expected in 2025 despite challenges — analysts

THE global air industry is still slated for profitability next year despite persisting supply chain issues, according to the International Air Transport Association. — PHILIPPINE STAR/ WALTER BOLLOZOS

By Ashley Erika O. Jose, Reporter

THE PHILIPPINE AVIATION industry is poised for growth in 2025, driven by the maintenance, repair, and overhaul (MRO) sector and increasing travel demand, despite ongoing global supply chain issues, according to analysts.

“Cost and supply chain issues may still persist in 2025, but there will definitely be reasonable growth in profitability worldwide,” Nigel Paul C. Villarete, senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc. and former chief executive officer of Mactan-Cebu International Airport Authority, said in a Viber message to BusinessWorld.

The country’s aviation industry has a bright outlook, Mr. Villarete said, adding that the country’s air sector will be driven by promising gross domestic product forecasts and the country’s emerging attractiveness as a maintenance, repair, and overhaul choice for regional airlines.

The Development Budget Coordination Committee trimmed the economic growth target for this year to a range of 6-6.5% but widened the target band to 6-8% for 2025 until 2028.

He said both the Mactan-Cebu International Airport and the Clark International Airport have adequate MRO capabilities to further develop their capacities.

“This is a subsector worth looking forward to,” he said.

While global supply chain issues will continue to hamper growth in 2025, there is still room for growth, Mr. Villarete said.

According to a report by the International Air Transport Association (IATA) dated Dec. 10, the global air industry is still slated for profitability next year despite persisting supply chain issues.

“Overall financial performance is expected to improve in 2025 on the back of lower jet fuel prices and efficiency gains. Further increases are being held back by forced capacity discipline resulting from unresolved supply chain issues,” IATA said.

Global supply chain constraints have disrupted operations of airlines, such as shortages of parts, labor, and new planes, especially as airline companies are on the path to recovery from the pandemic.

PROFITABILITY OF LOCAL AIRLINES
“Philippine airline companies are positioned at a critical juncture in 2025. Their profitability will likely depend on several factors: recovering travel demand, fuel price stability, government regulations, and competitive dynamics in the Southeast Asian market,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.

For the nine months ended September, both listed local airlines posted lower income and gross revenues for the period.

Earlier, market watchers said that listed airline companies are expected to deliver mixed results for 2024, mainly due to the anticipated recovery in the sector but possibly outweighed by the volatility of the airline industry.

Mr. Arce said recent trends suggested cautious optimism due to strong economic growth and rising tourism in the Philippines.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that airline companies’ profitability would highly depend on the further recovery and growth of passenger and cargo volume.

“[This comes after] as foreign tourism numbers move closer to pre-pandemic levels,” Mr. Ricafort said.

For the January-to-September period, air passenger volumes at the Ninoy Aquino International Airport (NAIA) exceeded those of the equivalent period in the last pre-pandemic year, mainly driven by growth in domestic travel, according to the Manila International Airport Authority (MIAA).

The MIAA reported that air passenger volume totaled 37.38 million for the nine months, up 10.7% and 4.2% higher than the total recorded in the first nine months of 2019.

For the first nine months, MIAA reported 17.29 million international passengers, of which 8.9 million were departing passengers and 8.39 million arriving. Domestic travelers for the period amounted to 20.09 million, MIAA said.

For December, the Civil Aeronautics Board has kept the passenger and cargo fuel surcharge for domestic and international flights at Level 4, the third time it remained at this level this year.

Rino E. Abad, director of the Oil Industry Management Bureau at the Department of Energy, said fuel movement, including aviation fuel, will always remain volatile and would be hard to predict.

However, key factors such as the expected extension of oil cuts by the Organization of the Petroleum Exporting Countries and their allies, including Russia (OPEC+), will likely affect demand, thereby increasing fuel prices.

“So supposedly by December, OPEC+ will increase the supply. But they are delaying it, so if they start increasing the supply, then we will be confident that the market will see lower prices,” Mr. Rino said in a phone interview.

Meanwhile, Jayniel Carl S. Manuel, an equity trader at Seedbox Securities, Inc., said Cebu Pacific and Philippine Airlines are set to experience growth in 2025.

He said the resurgence of global travel demand will undeniably contribute to this growth.

“There’s a palpable eagerness among people to travel again, especially during peak seasons like the summer vacation months. This pent-up demand is expected to translate into higher passenger volumes for airlines,” Mr. Manuel said in a message.

For the third quarter, both listed airlines saw their third-quarter attributable net income decline.

Cebu Air, Inc., the operator of Cebu Pacific, incurred an attributable net loss of P173.19 million from an attributable net income of P1.28 billion in the same period last year as higher expenses put pressure on the company’s profit for the period.

PAL Holdings, Inc. saw its third-quarter attributable net income plunge to P789.79 million, more than fivefold lower than last year’s P4.28 billion due to lower passenger revenue during the period.

Fundamentally, both Cebu Pacific and Philippine Airlines have taken strategic steps to strengthen their market positions, she said, noting that, for instance, Cebu Pacific has been aggressively expanding its fleet and route network.

In October, Cebu Pacific finalized its landmark deal of 152 aircraft from Airbus SE valued at a total of P1.4 trillion ($24 billion), making it the biggest aircraft order in Philippine history.

“Philippine Airlines, on the other hand, has undergone restructuring efforts to optimize operations and reduce debt, positioning itself for sustainable growth,” he said.

“Recent developments also bolster this optimistic scenario. The government has announced investments in tourism infrastructure, aiming to enhance airport facilities and connectivity to key destinations,” Mr. Manuel said.

Ayala Corp. secures €50 million from European lender

FROM LEFT, Wing Bayoneta, product management & development lead, ING Philippines; Lenin Dueñas, head of corporate sector coverage and financial institutions, ING Philippines; Jun Palanca, country manager and head of wholesale banking, ING Philippines; Albert de Larrazabal, chief finance officer, Ayala Corp.; and Estelito Biacora, treasurer, Ayala Corp., during the signing ceremony.

LISTED conglomerate Ayala Corp. has secured a social loan worth €50 million (P3.1 billion) from European bank ING Group to support its subsidiary Ayala Healthcare Holdings, Inc.’s (AC Health) portfolio growth.

“As a global bank with deep expertise in sustainable finance, we are proud to play a crucial role in enabling Ayala to address pressing challenges in the healthcare sector,” ING Philippines Country Manager Jun Palanca said.

“This social loan marks an important milestone for ING and our partnership with Ayala Corp. ING’s commitment to sustainability goes beyond financing; it is about empowering businesses to drive meaningful, long-term impact,” he added.

The €50-million social loan is the first Euro-denominated social loan that ING has structured for a Philippine conglomerate.

The social loan is structured in adherence to the latest Social Loan Principles published by the Loan Market Association, Asia Pacific Loan Market Association, and the Loan Syndications & Trading Association, paving the way for other foreign banks, including European banking institutions, to come in and participate in financing the growth of sustainable projects in the Philippines.

“This social loan from ING will enable us not only to build and scale our AC Health portfolio, but it will also enable us to serve more Filipinos by providing them access to quality and affordable healthcare,” Ayala Corp. Chief Finance Officer Alberto M. de Larrazabal said.

Ayala Corp. recorded a 5% increase in its nine-month net income to P34 billion.

Core net income rose by 19% to P36.7 billion, led by its core units Bank of the Philippine Islands, Ayala Land, Inc., Globe Telecom, Inc., and AC Energy and Infrastructure Corp.

At the local bourse on Wednesday, shares dropped by 0.33% to close at P2 each. — Sheldeen Joy Talavera

7 energy projects cleared for system impact study

A man inspects solar panels in this file photo. — PHILIPPINE STAR/EDD GUMBAN

THE Department of Energy (DoE) endorsed seven energy projects in November to undergo a system impact study (SIS) with the National Grid Corp. of the Philippines.

“In November 2024, the DoE issued seven SIS endorsements, which are composed of one amendment and six new applications,” the department said in a document posted on its website.

Such studies are conducted to determine the adequacy and capability of the grid to accommodate the new connection.

The power projects have a combined potential capacity of more than 800 megawatts (MW).

The department issued SIS endorsements for five solar power projects, one wind power project, and one biomass project.

For solar power, those endorsed for SIS are Embrace Nature Power1 Corp.’s 180-megawatt-peak (MWp) Agrovoltaic Solar Power Project and 192 megawatt-hour battery energy storage system; Fortune Renewable Energy Corp.’s 120-MWp Fortune Lal-lo Solar Energy Power Project; and Zamboanguita Solar Power Corp.’s 60.012-MWp Zamboanguita Solar Power Project.

The list also includes Upgrade Energy Philippines, Inc.’s 47-MWp Pontevedra Solar Power Project and Enfinity Philippines Renewable Resources Third, Inc.’s 11.22-MWp Butuan City 1 Solar Power Project.

The DoE also endorsed CleanTech Global Renewables, Inc.’s 187.20-MW Tayabas South Wind Energy Project and Pilipinas Renewable Energy Corp.’s 15-MW Panay Biomass Power Project in Iloilo.

This year, the department has issued 179 SIS endorsements, including 174 for renewable energy projects and five for energy storage systems. — Sheldeen Joy Talavera

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