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Aerocity franchise bill clears second reading

THE measure granting a 50-year franchise for the San Miguel Aerocity, Inc. to construct and operate the Bulacan airport and “airport city” has been approved on second reading at the Senate.

The chamber on Monday evening approved the franchise bill, which adopted House Bill No. 7507, for the operation of a new domestic and international airport, seen to decongest the Ninoy Aquino International Airport.

The passage was pushed to allow the chamber to have it passed on third reading by next week ahead of the Oct. 17-Nov. 15 session suspension.

“Let’s get this off the plate already, this San Miguel Aerocity because this is time bound,” Senate Majority Leader Juan Miguel F. Zubiri said in Monday’s session.

“We would like to be able to finish this before the session ends next week and if we don’t pass it this week, obviously the third reading would be difficult by next week.”

The proposed P1.5-trillion Bulacan airport and a so-called airport city are expected to accommodate 100 million passengers annually. San Miguel Aerocity will also build an expressway that will link it to North Luzon Expressway and a rail link through Metro Rail Transit-7.

The 50-year franchise is inclusive of a 10-year maximum period for the design, planning and construction of the airport and airport city. It will also exempt the grantee from direct and indirect taxes during the 10-year construction period.

The Action for Economic Reforms, however, opposed the tax exemption, arguing that it will set a precedent for other companies to ask for the same exemptions as well as undermine the incentives pushed under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill.

The grantee will also be entitled to a revenue share worth 12% of the internal rate of return (IRR) annually, upon determination by a competent authority that San Miguel Aerocity has recovered the investment cost. Amount in excess of the 12% IRR will be remitted to the government.

Senator Grace S. Poe-Llamanzares described the franchise as a “unique agreement,” noting the incentives granted were considered based on the risks of such an investment.

“This is a very unique agreement. If there’s anybody who’s willing to put out the same amount of risks or even more, then it is upon us to grant the same agreement or incentives, if not better,” Ms. Llamanzares said.

Further, the bill provided the franchise may be revoked should San Miguel Aerocity fail to start construction within one year or start operation within one year after securing a permit from the Civil Aviation Authority of the Philippines.

Other conditions for revocation are the failure to start operating within 12 years from the enactment and the failure to continuously operate for two years. — Charmaine A. Tadalan

Gov’t fully awards 3-year bonds as rate drops on strong demand

THE government raised P30 billion from the reissued three-year bonds on the back of strong investor demand. — BW FILE PHOTO

THE GOVERNMENT made a full award of its reissued three-year Treasury bonds (T-bonds) it offered on Tuesday as its rate declined following the release of data showing slower inflation in September.

The Bureau of the Treasury (BTr) borrowed P30 billion as planned via the T-bonds on Tuesday as the offer was almost four times oversubscribed, with bids amounting to P114.488 billion.

The government made a full award of its offer as the reissued three-year debt papers — which have a remaining life of two years and 11 months — fetched an average rate of 2.182%, declining by 9.7 basis points from the 2.279% seen in the previous auction on Sept. 8.

The Treasury also opened its tap facility on Tuesday to borrow another P15 billion via the three-year bonds to accommodate the strong demand seen yesterday.

National Treasurer Rosalia V. de Leon said the lower average yield fetched for the three-year papers yesterday reflected an improving economic outlook among investors following the release of data showing inflation eased further last month.

“Following the lower September inflation print and remarks from [central bank] Governor Benjamin E. Diokno, the auction saw strong subscription and pushed rates down from secondary levels,” Ms. De Leon told reporters in a Viber message after yesterday’s offering.

At the secondary market on Tuesday, the three-year T-bonds fetched 2.284%.

Inflation eased for the second straight month in September to its slowest in four months on lower prices of food and non-alcoholic beverages.

Headline inflation stood at 2.3% in September, the slowest since May’s 2.1%, the Philippine Statistics Authority (PSA) reported yesterday. The September print was down from the 2.4% pace in August but faster compared with the 0.9% print in September 2019.

The latest reading matched the median estimate in a BusinessWorld poll conducted last week and fell within the Bangko Sentral ng Pilipinas’ (BSP) 1.8%-2.6% estimate range for September. 

Year to date, inflation has so far averaged 2.5%. This is higher than the BSP’s forecast of 2.3% for the year but still within its 2-4% target.

Meanwhile, a trader said the auction result shows that the three-year tenor remains attractive to investors.

“It seems the three-year space is the sweet spot in the curve for investors as reflected in the robust volume of bids submitted. Results were somehow lower than expected as the bond was trading around 2.20% levels prior to the auction,” the trader said.

Ms. De Leon said the government’s P540-billion advance from the central bank means the Treasury has ample cash for its financing requirements amid the coronavirus pandemic.

“With the advance from the BSP, the BTr is on track with its borrowing program to meet funding requirements. You have seen full awards in our auctions allowing us to raise funding in the onshore market as planned,” she said.

The Treasury is looking to raise P140 billion from the domestic market this month: P80 billion in weekly T-bill auctions and P60 billion in fortnightly T-bond auctions.

The government wants to borrow around P3 trillion this year from local and foreign lenders to help fund its budget deficit expected to hit 9.6% of the country’s gross domestic product. — KKTJ

Gov’t, Nestlé tie up to boost coffee bean output

THE Trade department signed an agreement with Nestlé Philippines, Inc. to help increase coffee bean farmer yields through business development services and training.

The agreement is under the P4.7-billion Rural Agro-Industrial Partnership for Inclusive Development (RAPID Growth) program meant to assist 7,800 coffee, cacao, coconut, and processed fruit and nuts farmers through training, equipment, and infrastructure support.

Funded by the International Fund for Agricultural Development (IFAD), the entire program will covers seven regions and 21 provinces with high poverty incidence.

The Nestlé partnership will initially cover nine farmers cooperatives with 1,500 farmer households in Sultan Kudarat and Bukidnon, where the company will offer agricultural technical training such as crop maintenance.

Each smallholder farmer will be given a hectare’s equivalent of coffee bean planting materials to scale up production. The cooperatives can also access funding support for production and post-harvest equipment.

“Nestlé would be providing marketing and technical support and of course, other agri-preneur interventions that they do have,” Rapid Director Edwin O. Banquerigo said in an online event on Tuesday.

“All the training that we’re going to do, particularly on the production, we are going to leverage Nestlé’s expertise on coffee production technology,” he said, adding that the company will help them identify the needed equipment for coffee farming.

As part of the RAPID Growth project, the identified areas will be given access to business development interventions, raw materials and technology, investments for production and facilities, and rehabilitation of farm to market road infrastructure.

The project’s goal is to increase farmers’ income by improving their productivity.

“This project helps rural farming communities by providing enabling conditions for the creation of more agro-enterprises,” Trade Secretary Ramon M. Lopez said.

“Even as it improves the productive capacities of farmers, it also ensures the sustainable growth of our micro-SMEs (small and medium-sized enterprises).” — Jenina P. Ibañez

Communist-era mosaics at Bulgaria’s controversial monument get life support

BUZLUDZHA PEAK, Bulgaria — Perched atop a mountain peak in central Bulgaria, a giant UFO-like concrete monument, built to glorify the Balkan country’s communist rule, has been left to crumble since the totalitarian regime collapsed in 1989.

Some 30 years later, a team of restorers from five European universities is working against time and weather to protect one of the largest modernist mosaics in Europe, while Bulgaria decides on the fate of the controversial monument.

Behind the plan is Bulgarian architect Dora Ivanova, whose foundation won grants from the US Getty Foundation to draw a conservation plan for the abandoned monument and its curved intricate mosaic panels depicting communist propaganda.

“We should not destroy everything that has been created in periods that we like or do not like or are traumatic but on the contrary, they should exist to remind us, to help us learn from the mistakes in the past,” 30-year-old Ms. Ivanova said.

The monument, a Brutalist example of Socialist architecture, has fallen victim to vandalism, thieves and severe weather. Different graffiti artists have also left their mark inside next to the original murals of Karl Marx and Vladimir Lenin.

In 2018, the Buzludzha Monument was put on the list of seven most endangered heritage sites in Europe by cultural heritage organization Europa Nostra, which wanted to have it renovated and opened to the public.

Spread over 900 square meters (9,687 square feet) on curved walls around a ceremonial wall, the mosaics have been damaged by rain and snow pouring through the building’s broken domed ceiling.

For over two months restorers collected fallen pieces, injected mortar and different materials to stabilize them.

“We are sheltering the mosaics from further decay,” said Professor Thomas Danzl, chair of the conservation department at the Technical University of Munich, part of the restorers’ team.

“Such heritage should be protected as a memory of the past, even if it is a controversial past,” he said.

Bulgaria has adopted a law declaring the communist regime criminal, but many, shaken by a painful transition to market economy, are still nostalgic for the past. Different governments have shied away from deciding whether Buzludzha — built in 1981 as a memorial house to the Bulgarian Communist Party — should be protected as a cultural heritage.

Ivanova believes it should be made safe and open for tourists and debates, including on how Bulgarians can come to terms with their recent history. — Reuters

Tighter monetary policy affects smaller rural banks more — study

RURAL BANKS with a lower asset base are likely to be more affected by tighter monetary policy, especially in terms of lending, a study by the Bangko Sentral ng Pilipinas (BSP) found.

A BSP working paper titled “Heterogenous Impact of Monetary Policy on the Philippine Rural Banking System” said highly capitalized rural banks are more inclined to protect their capital than expand their lending portfolio in cases when the central bank raises rates.

“[L]ending of rural banks with smaller asset base is adversely affected during period of contractionary monetary policy whereas higher asset base of larger banks enables them to insulate their bank lending activity from the impact of contractionary monetary policy,” it said.

“This is not surprising since smaller rural banks also presumably face tougher competition from branch network and branch-lite operations of bigger universal and commercial banks as well as from government lending programs,” it added.

The study looked into balance sheet and profitability indicators including return on assets and net interest margins of some 609 head offices of rural banks from the first quarter of 2010 to the second quarter of 2018. The said period saw the Monetary Board hiking benchmark rates by 50 basis points in 2011 and 2014.

The BSP noted the dataset has an “unbalanced panel data structure” as the industry saw some closures and mergers and as some rural banks were upgraded or created during the period.

During the period, the study also found rural banks on average were able to keep their capital adequacy ratio (CAR) above the 10% minimum required by the BSP. Moreover, net interest margin was also “quite high” at 10.6%.

“The encompassing reforms in the regulatory milieu such as the introduction of Basel regulatory standards, the Consolidation Program for Rural Banks, the establishment of microfinance business offices, and branch lite concept in banking, among others, may have spawned differential impact of monetary policy on the credit intermediation function of rural banks,” the study said.

As of end-June, rural and cooperative banks recorded consolidated total assets worth P271.9 billion.

Amid the coronavirus pandemic, rural lenders’ gross nonperforming loan ratio stood at 13.47%. This, as bad loans accounted for P19.93 billion out of the total loan portfolio worth P147.93 billion.

At end-2019, rural and cooperative banks logged a CAR of 19.46%. — L.W.T. Noble

STI Holdings to start fiscal year in July

PRIVATE school operator STI Education Systems Holdings, Inc. (STI Holdings) is changing its fiscal year in line with its shift in academic calendar.

The Tanco-led listed firm told the exchange on Tuesday its fiscal year will now begin every July 1 and end every June 30, against the previous schedule of starting every April 1 and ending every March 31.

“The operations of STI Holdings and its subsidiaries is linked to the academic cycle or the school year in the country. In recent years, the subsidiaries have started moving the school calendar to eventually align their respective academic cycles with that of public and other private higher learning institutions,” it said.

STI Holdings has submitted its short-period income tax returns and audited financial statements to the Bureau of Internal Revenue for the period from April to June 2020. Its current fiscal year will account for the period from July 2020 to June 2021.

In the three months from April to June, STI Holdings booked an attributable net loss of P220.36 million, slimmer than the P240 million in the same period last year, because of lower costs during the period.

However, its revenues dropped 43% to P196.89 million, attributable to lower tuition and school fees because of the shift to online classes.

With the ensuing coronavirus pandemic and the government’s lockdown to contain its spread, schools in the Philippines have implemented blended learning where nearly all activities are facilitated through online platforms.

The subsidiaries of STI Holdings have all implemented online classes this year, which started in August for iACADEMY and in September for STI Education Services Group and STI West Negros University.

But the company has not ruled out physical classes, which it may conduct as long as it follows safety guidelines required by the government.

STI Holdings has not yet reported its number of enrollees for the current academic year. In the school year 2019-2020, its total enrollees fell 2% to 83,967, accounting for students across STI Education Services Group, STI West Negros University and iACADEMY.

Shares in STI Holdings at the stock exchange chipped off 0.5 centavos or 1.61% to close at 30.5 centavos each on Tuesday. — Denise A. Valdez

Arts & Culture (10/07/20)

Webinar on architecture for kids

CHILDREN can learn about art and architecture in a Zoom webinar conducted by the Metropolitan Museum of Manila and the Japan Foundation called “What is a Built Environment? The Art and Science of Architecture for Kids” which will be held on Oct. 17, 4:30-6 p.m. The speakers are Dr. Edson Cabalfin, the Director of Social Innovation and Social Entrepreneurship at The Tulane School of Architecture, and Asa Montenejo who is president of children’s publisher Adarna House. They are, respectively, the author and the illustrator and designer of the book What Kids Should Know About Filipino Architecture. The event is free and will be held on Zoom with an FB Live broadcast. Register for the event here https://us02web.zoom.us/webinar/register/WN_Q0b7c1g2S8eszABTR6v69g?fbclid=IwAR3ipPyMBJaBE1zKRxICpNjxZw6zV. For details contact the Metropolitan Museum at info@metmuseum.ph .

Penguin Random House releases 2 new books

PENGUIN Random House SEA has released two new books: Who Killed the King of Bagan?, a thrilling introduction to Myanmar’s founding capital by Jame DiBiasio, with a twist of murder; and The Rosales House,  a story of discovery, resilience and familial bonds by Mignon Bravo Dutt. Who Killed the King of Bagan? is a deep dive into the rich and well-guarded history of Myanmar through the device of a murder mystery. According to the Myanmarese chronicles, Bagan’s most important king was Anawrahta who died under suspicious circumstances, and contemporary Burmese writers surmise he was assassinated. But why, and by whom? Jame DiBiasio is the author of The Story of Angkor, which was published by Silkworm Books in 2013, and was also an extensively researched history for tourists. He has also published two novels: Gaijin Cowgirl (Crime Wave Press, 2013) and Bloody Paradise (Water Street Crime, 2016). Jame has been living in Asia since 1997. He is an award-winning financial journalist and the founding editor of AsianInvestor. Meanwhile, seasoned writer Mignon Bravo Dutt brings an inspiring yet relatable story of Claire, the protagonist of The Rosales House, as she embarks on a journey of discovering her roots with many ups and downs en route. A contemporary work of fiction, this story will take readers into the lives, trials and tribulations of the Rosales family as it unfolds across several geographies, from Singapore to New York and Valle Viejo, and the Philippines, just to name a few. Migs Bravo-Dutt is a writer and researcher whose work has been published in several countries, regions, and cultures. Her short fiction has appeared in 22 New Asian Short Stories 2016 and The Best Asian Short Stories 2018. She has co-edited Get Lucky: An Anthology of Philippine and Singapore Writings, a Singapore Writers Festival bestseller in 2015. She has also contributed poetry to various anthologies and journals in Singapore, Asia, Croatia, and the USA, and written for Royal Bhutan Druk Air’s Tashi Delek and other travel guides and newsletters.

4 exhibits at West Gallery

WEST Gallery has four ongoing exhibits: Carina Santos’ The Second Structure of Feeling, Pinky Urmaza’s Book of Days, Elaine Roberto-Navas’  Light as Water, and Ev Yu’s Square Running in Circles. The exhibits can be viewed until Oct. 24. Visitors are welcome to the gallery by appointment only. To make an appointment, call 3411-0336.

PETA’s latest online theater workshops target adults

HAVING successfully conducted two batches of online workshops within the last four months, the Philippine Educational Theater Association (PETA)  final set of workshops, Stream 3 of Let’s Get Creative Plus (LGC Plus), is tailored to meet the demands of adults who are looking for professional and personal artistic development in between their busy work-from-home  schedules. LGC Plus Stream 3 will be conducted exclusively on weekends. Participants can expect to be immersed in a one of a kind learning experience during the workshops’ five three-hour sessions conducted on Zoom. With emphasis on practical and on-hand activities guided by PETA’s artist-teachers, the program will be concluded through an online recital. Creatives-at-heart can have their pick among LGC’s tried and tested courses: Acting for Beginners (Saturdays/Sundays, 5 – 8:30 p.m., on Oct. 24, 25, 31, Nov. 7, 8, Showcase on Nov. 15) which is open to beginners and experienced performers alike and covers not only the rudiments of script analysis, screenwork, and character creation through the guidance of actor and director Dudz Teraña; Acting for Screen (Fridays/Sundays, 5 – 8:30 p.m., Oct. 23, 25, 30, Nov. 6, 8, Showcase on Nov. 15) which will help performers shake off their camera shyness and improve on their camera acting skills through sessions on the technical aspects of acting in front of a camera, character creation, and monologue performance, led by actor and director Phil Noble; Creative Musical Theater (Fridays/Sundays, 5-8:30 p.m., Oct. 23, 25, 30, Nov. 6, 8, Showcase on Nov. 15) which is designed to develop one’s musicality through interpretation and storytelling, taught by composer and musical director Jeff Hernandez; and Introduction to Writing for Performance (Fridays/Sundays, 5-8:30 p.m., Oct. 23, 25, 30, Nov. 6, 8, Showcase on Nov. 15) which is an introductory course made to empower aspiring writers, participants will be led by writer and actor J-mee Katanyag. The classes are open to theater enthusiasts and aspiring artists, both experienced and beginners, aged 18 and above. For details on enrollment visit www.bit.ly/PETAOnlineWorkshop, or contact Betita at 0926-406-6858 or betitasarmiento@petatheater.com.

Ayala Museum launches online shop

THE AYALA Museum has launched its new online Ayala Museum Shop as part of its Ayala Museum Virtual offerings. The launch of the site also features a whole new line of Ayala Museum products, with uniquely Filipino products inspired by the Ayala Museum collection — transformed into contemporary uses for the every day.​ From tote bags to notepads to sanitizing kits and to action figures, the new products are both a reflection of how lives have changed during the height of COVID-19 (coronavirus disease 2019) and a showcase Philippine art and culture. The Stay Home Collection repurposes the works of Filipino artists Jose Honorato Lozano and Damian Domingo into everyday items such as tote bags, pouches, notepads, and mugs. There are also personal care items such as alcohol, alcogel, essential oils, and  a space freshener set of linen sprays and reed diffusers.  Also available is a limited-edition Jose Rizal action figure, the first to be released under Historic Heroes, a series of action figures in the likeness of Philippine history’s most inspiring figures. The Ayala Museum Shop also curated an Art & Care Kit that comes with a Tipos del Pais tote bag that contains customizable face masks, creativity sheets, and stickers to help bring creativity from the museum to the home. Proceeds of this Art & Care Kit will be donated to an Art & Wellness Program for frontliners. Explore more of the Ayala Museum Shop’s online offerings at shop.ayalamuseum.org. Follow Ayala Museum on Facebook, Twitter, and @ayalamuseumshop on Instagram to get updates on their products.

Forum on pandemic’s effect on art to be held

“CROSS-Continental Conversations in the Cone of Uncertainty,” a panel discussion which tackles the challenges of producing exhibitions during the pandemic and amid the global turmoil, will be held on Oct. 8 in preparation for the celebrated South Korean artist Haegue Yang’s forthcoming first solo exhibition in the Philippines. Hosted by the Museum of Contemporary Art and Design (MCAD) of the De La Salle-College of Saint Benilde, the talk will delve on the impact of the current situations in art and the cultural institutions in Europe, Asia, and North America as well as the response of the local community in these changes. The forum will feature Jihoi Lee, Curator of the National Museum of Modern and Contemporary Art in Seoul, Korea; Adelina Vlas, Associate Curator of the Art Gallery of Ontario in Toronto, Canada; and Anne Barlow, Director and Curator of the Tate St. Ives in Cornwall, United Kingdom.  It will be facilitated by the MCAD Director and Curator Joselina “Yeyey” Cruz and will be conducted via Zoom on Thursday, Oct. 8, at 8 p.m. Those who wish to reserve a slot may register through this link: https://www.mcadmanila.org.ph/cross-continental-conversations-in-the-cone-of-uncertainty/. For more inquiries, e-mail mcad@benilde.edu.ph.

Kaida Contemporary holds solo show, group show

KAIDA Contemporary presents Gaining Ground, a solo exhibition by Mark Arcamo, and Present Tense, a three-man group show by Nick Navarro, Oddin Sena, and Jone Sibugan. In Arcamo’s latest solo exhibit, the artist gives life to the frustrations and disappointments of the last few months.  In Present Tense, the artists draw up the tensions filling the days in the light of recent events and the ways they cope. Nick Navarro focuses on the breath, the way it is held and kept track of. Oddin Sena seeks inspiration from experiences of taking on a different profession and its accompanying challenges. Jone Sibugan interprets the identity crisis one goes through in moments of uncertainty and confusion. Gaining Ground and Present Tense will run until Oct. 19. Physical viewing of the works may be done at the gallery from Oct. 6 onwards. Kaida Contemporary is located at 45 Scout Madriñan St., South Triangle, Quezon City. For inquiries, contact the gallery at kaida529@yahoo.com.ph, 8463-5859 and 0927-929-7129, or message the gallery on its social media channels.

3rd issue of Art Archive out

THE JAPAN Foundation, Manila has announced the publication of Art Archive 03, the third volume of a series that explores current trends and concerns in Philippine contemporary art. Art Archive 03 brings together 16 writers, presenting a diverse set of perspectives about contemporary music and design in the country. In line with the Japan Foundation’s aim of carrying out comprehensive international exchange programs throughout the world, the book is published in a digital format for accessibility. As a primer for readers interested in Philippine art, Art Archive 03 is meant to be used as a resource to foster cultural exchange and knowledge sharing for artists, educators, and art and cultural institutions in the Philippines and abroad. The Japan Foundation also released two videos for its Virtual Book Launch presenting the contents of both the Music and Design sections. The videos also include discussions between the section editors and contributors about their essays and professions. Access the videos on the Official YouTube Channel: The Japan Foundation, Manila.

How PSEi member stocks performed — October 6, 2020

Here’s a quick glance at how PSEi stocks fared on Tuesday, October 6, 2020.

UnionBank upsizes medium term note program to $2 billion

UNIONBANK of the Philippines, Inc. has doubled its medium term note (MTN) program to $2 billion, it said on Tuesday.

The bank said in a disclosure to the local bourse that it has completed the update of its MTN to increase the program’s size to $2 billion from the original $1 billion.

“With the Updated Programme, the Bank may from time to time issue, offer and sell the remaining balance of the notes…or its equivalent in other currencies,” UnionBank said.

“The notes shall be issued in such form, amount, currency, tenor, number of tranches, at such interest rate, and under such other terms and conditions as the Bank may subsequently determine or approve. Details regarding each issuance or each tranche shall be disclosed at the appropriate time,” the bank added.

UnionBank launched its MTN program in November 2017. It already issued $500 million in senior debt that month.

Proceeds from the MTN program will support the bank’s debt management and lending activities, it earlier said.

UnionBank booked lower net earnings in the first semester as it continued to build up loan provisions amid the coronavirus disease 2019 (COVID-19) pandemic.

The Aboitiz-led lender’s net income slipped six percent year on year to P4.5 billion in the first six months of the year. Provisions for loan losses in the first half totaled P7 billion, the bank said.

UnionBank shares closed at P54.20 apiece on Tuesday, down five centavos or 0.09% from its previous close at P54.25 each.

Peso strengthens as inflation slowed in September

THE PESO further strengthened on Tuesday following slower inflation for September and hopes of a deal on a stimulus fund in the United States meant to combat the economic impact of the coronavirus disease 2019 (COVID-19).

The local unit closed at P48.38 versus the dollar on Tuesday, rising by 2.5 centavos from its P48.405 finish on Monday.

The peso opened Tuesday’s trading at P48.35 against the greenback. It strengthened to as high as P48.33 during the session. On the other hand, the peso hit an intraday low at P48.42 per dollar.

Dollars traded rose to $658.2 million on Tuesday from $499.3 million on the previous day.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message that the peso strengthened as sentiment improved following the release of data showing slower inflation last month.

Inflation eased for the second straight month in September to its slowest in four months on lower prices of food and non-alcoholic beverages.

Headline inflation stood at 2.3% in September, the slowest since May’s 2.1%, the Philippine Statistics Authority reported yesterday. The September print was down from the 2.4% pace in August but faster compared with the 0.9% print in September 2019.

The latest reading matched the median estimate in a BusinessWorld poll conducted last week and fell within the Bangko Sentral ng Pilipinas’ (BSP) 1.8%-2.6% estimate range for September.

Year to date, inflation has so far averaged 2.5%. This is higher than the BSP’s forecast of 2.3% for the year but still within its 2-4% target.

Meanwhile, a trader said the peso rose on optimism that US lawmakers could agree on new stimulus to ease the economic impact of the coronavirus.

US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour on Monday on coronavirus economic relief and were preparing to talk again on Tuesday, continuing their recent flurry of activity working towards a deal on legislation, Reuters reported.

White House Chief of Staff Mark Meadows said there was still potential for an agreement among lawmakers in Washington on more economic relief, and that US President Donald Trump was committed to getting the deal done.

However, renewed efforts in Congress to reach an agreement on relief funds for the pandemic-hit economy has been complicated by the spread of the coronavirus among key policy makers, including Mr. Trump.

For today, Mr. Ricafort sees the peso moving from P48.30 to P48.45 versus the dollar while the trader expects it to range from P48.30 to P48.50. — with Reuters

Main index drops further on inflation, trade data

LOCAL SHARES continued to decline on Tuesday as the government reported slower inflation in September, which investors took as a signal of a challenged economy.

The 30-member Philippine Stock Exchange index (PSEi) fell 28.31 points or 0.47% to close at 5,910.64, while the broader all shares index slid 15.09 points or 0.42% to end at 3,543.73.

“Economic concerns extended the local market’s losses today…,” Japhet Louis O. Tantiangco, a senior research analyst at Philstocks Financial, Inc., said in a text message on Tuesday.

“The inflation slowdown this past September reflecting the challenged consumer demand, and the Bangko Sentral ng Pilipinas’ 7 to 9 percent contraction forecast for the 2020 GDP (gross domestic product) raised worries over the local economy,” he added.

Headline inflation eased to 2.3% in September, down for the second straight month and the slowest since the 2.1% print in May, data reported by the Philippine Statistics Authority (PSA) on Tuesday showed. The September print is slower than August’s 2.4% but faster than September 2019’s 0.9%.

The slowdown came as Metro Manila and key cities remain under a relaxed lockdown. The PSA said it expects inflation to average 2.4-2.5% for the remaining months of the year.

The PSA also reported manufacturing output on Tuesday, which fell by 9.9% in August, logging its sixth straight month of decline.

These economic indicators pulled the PSEi down for a second consecutive day. It was dragged further by continued net foreign selling that reached P863.7 million on Tuesday, albeit lower than Monday’s net outflow worth P1.09 billion.

“So far, our local market’s net foreign outflows is already running on an 18-day streak averaging P678.9 million per day,” Mr. Tantiangco said.

Negative sentiment among foreign investors can be attributed to the health of US President Donald Trump and the possibility of additional fiscal stimulus in the world’s largest economy, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

Mr. Trump tested positive for the coronavirus disease 2019 (COVID-19) last week but claimed in a tweet on Tuesday that he is “feeling really good.” US stocks closed higher on Monday: the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices gained 1.68%, 1.80% and 2.32%, respectively.

Back home, sectoral indices all posted declines on Tuesday: industrials lost 112.19 points or 1.41% to 7,837.74; financials shed 12.99 points or 1.11% to 1,153.53; mining and oil shaved off 23.96 points or 0.40% to 5,839.27; holding firms erased 23.66 points or 0.38% to 6,133.04; property slid 4.58 points or 0.16% to 2,752.14; and services dipped 0.81 point or 0.05% to 1,463.01.

Some 2.09 billion issues valued at P8.08 billion switched hands on Tuesday versus the 2.73 billion issues worth P6.46 billion in the last session. Decliners outpaced advancers, 144 against 57, while 53 names ended unchanged. — Denise A. Valdez

House suspends sessions amid speakership squabble

By Kyle Aristophere T. Atienza

THE HOUSE of Representatives on Tuesday approved next year’s P4.5-trillion national budget on second reading after Speaker Alan Peter S. Cayetano, who has rejected a term-sharing deal he agreed to last year, moved to terminate debates and sessions until Nov. 16.

This prevents his rival — Marinduque Rep. Lord Allan Q. Velasco — from trying to take over the post under a gentleman’s agreement brokered by President Rodrigo R. Duterte between the lawmakers. Mr. Velasco was supposed to take control of the speakership on Oct. 14.

Under the pact, Mr. Cayetano would be Speaker in the first 15 months of the 18th Congress, and Mr. Velasco would serve for the remaining 21 months.

Congressmen voted through loud ayes and nays on Zoom Cloud Meetings, but other lawmakers including Party-list Rep. Lito Atienza, who supports Mr. Velasco, claimed their microphones had been muted during the session.

Mr. Atienza and other party-list lawmakers under the Partylists Coalition Foundation, Inc. earlier criticized the removal of their president, Partylist Rep. Michael Romero as deputy speaker.

The group said legislative proceedings had been hijacked, noting that few lawmakers were allowed to go to the House plenary hall in Quezon City. Majority of House members attend sessions via Zoom amid a coronavirus pandemic.

Instead of continuing plenary debates on the budget,  Mr. Cayetano created a small committee that will consolidate proposed amendments during the break. Congress was supposed to suspend sessions on Oct. 17 and resume on Nov. 16 under its legislative calendar.

“You are not the real lord, it’s just your name,” Mr. Cayetano addressed his political nemesis before the budget was approved on second reading. Just because Mr. Velasco wishes to become Speaker doesn’t mean he will get it, he added..

The Speaker’s move was “typical of a poor loser,” Mr. Atienza said in a statement after the session was suspended.

“This proves beyond doubt that Speaker Cayetano is desperately hanging on,” he said. “He has just publicly confirmed that he is losing ground, that’s why he did it.”

“He didn’t care about constitutional integrity, throwing everything into the air and making Congress go on a long vacation,” the congressman said, accusing Mr. Cayetano of violating House rules.

President Rodrigo R. Duterte met with Mr. Velasco on Monday night, where he agreed to his plan to run for Speaker, presidential spokesman Harry L. Roque told an online news briefing on Tuesday.

“Congressman Lord Allan asked permission from the President to run for Speaker and the answer of the President was ‘It’s your right according to the agreement with Speaker Alan Cayetano,’” he said.

Mr. Duterte earlier met with the two rivals and asked both to honor the pact. He also told congressional leaders not to lose focus on next year’s national budget amid the pandemic.

Mr. Cayetano earlier in the day said he would confront the “illegal business activities” of congressmen belonging to the House supermajority that supports Mr. Velasco. He did not elaborate.

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