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Gilas Pilipinas ends Spain training on winning note

By Michael Angelo S. Murillo
Senior Reporter

THE Philippine national men’s basketball team ended its sojourn in Spain, part of its FIBA World Cup preparations, on a winning note, defeating Ivory Coast, 73-63, on the final day of the Torneo de Malaga on Sunday, Manila time.

Towed by the strong efforts of guard Robert Bolick and naturalized player Andray Blatche, Gilas Pilipinas made sure it did not finish the pocket tournament sans a victory.

All in all Gilas had a 3-1 record in Spain, including two wins in tune-up games against Congo and Ivory Coast early last week.

The team, however, lost to Congo, 82-71, in the tournament proper on Saturday, in the process depriving the Philippines the chance to face world number two Spain, led by National Basketball Association stars Marc Gasol and Ricky Rubio, in the four-country tournament.

Against Ivory Cost yesterday, Gilas had a solid start to set the tone for the team the rest of the way.

Yeng Guiao-coached Gilas took a narrow 17-13 lead after the first quarter before stretching its advantage to 10 points, 39-29, by the halftime break.

The Philippines, which played with a nine-man rotation anew as veteran Gabe Norwood sat out the game to nurse an injured groin, continued to hold sway in the third canto.

Ivory Coast tried to come back in the fourth period but Gilas would not allow anything such to happen as it went on and booked the win.

Mr. Bolick led the way for the Philippines, finishing with 19 points and seven assists with Mr. Blatche tallying 18 points and 18 rebounds.

Paul Lee and Japeth Aguilar had nine points apiece while CJ Perez finished with eight markers.

For Ivory Coast it was Deon Thompson who top-scored with 20 points to go along with 11 boards with Guy Landry Edi finishing with 15 and Mohamed Kone 11 points.

Gilas is expected to be back in the country by Tuesday and continue its preparations in the next two weeks before flying to China for the World Cup, happening from Aug. 31 to Sept. 15.

The team though should continue missing key cogs in on-court practices this week as the Philippine Basketball Association Commissioner’s Cup finals series is still ongoing.

Currently playing in the finals are Gilas pool members Troy Rosario and Roger Pogoy of the TNT KaTropa and June Mar Fajardo of the San Miguel Beermen while his teammate Marcio Lassiter is currently sidelined with a knee strain.

Game Four of the best-of-seven PBA Commissioner’s Cup finals series was to be played later yesterday. In the World Cup, the Philippines is bracketed in Group D along with Serbia, Italy and Angola in the opening round.

UAAP Season 82 to feature triple-header play dates

By Michael Angelo S. Murillo
Senior Reporter

SEASON 82 of the University Athletic Association of the Philippines kicks off on Sept. 4 with triple-header play dates one of its distinct features.

Happening every Wednesdays, the men’s basketball tournament will have midweek matches played at 10 a.m., 12:30 p.m. and 4 p.m. Venues are the Smart Araneta Coliseum, SM Mall of Asia Arena, and Ynares Center Antipolo.

Done to accommodate the 30th Southeast Asian Games which the country is hosting later this year, the scheduling tweak is a departure from the two-match hump day offering of the UAAP, which had been in effect for the longest time.

The same goes for the women’s side, with 8:00 a.m. games set to be held simultaneously in two different venues with another game played at 10 a.m.

Venues are the University of Santo Tomas Quadricentennial Pavilion, Araneta Coliseum, MOA Arena, and Ynares Center.

Weekend matches on Saturdays and Sundays will still be double-headers as per the official first-round schedule released last week.

The first scheduled triple-header happens on opening day, Sept. 4, at the Big Dome, itself a departure from the usual weekend kickoff of the season.

Playing on said date are the UST Growling Tigers and the University of the East Red Warriors at 10 a.m. followed by the Far Eastern University Tamaraws against the University of the Philippines Fighting Maroons at 12:30 p,m., and the defending champions Ateneo Blue Eagles versus the Adamson Soaring Falcons at 4 p.m.

Meanwhile, rivals Ateneo and De La Salle University Green Archers will have an early joust for Season 82 with the teams facing off on opening week on Sept. 8, Sunday, at 4 p.m.

Playing on opening week as well are the National University Bulldogs against Adamson and UP versus UST on Sept. 7, and UE against FEU on Sept. 8.

The “Battle of Katipunan” finals rematch between the Eagles and the Fighting Maroons takes places on the final play date of the first round on Sept. 29.

UP will take on Adamson, its Final Four opponent in Season 81, on Sept. 15 while Ateneo versus FEU, semifinal foes last year, happens on Sept. 14.

La Salle takes on UST, handled by former coach Aldin Ayo, on Sept. 28.

España rivals UST and FEU collide on Sept. 22 while FEU jousts with La Salle on Sept. 18.

The final weekend of the opening round will also see Adamson take on UST on Sept. 28 and NU versus UE on Sept. 29.

Ateneo is the host for UAAP Season 82.

Beermen tie KaTropa after Game Four win

By Michael Angelo S. Murillo
Senior Reporter

THE best-of-seven Philippine Basketball Association Commissioner’s Cup finals series between the San Miguel Beermen and TNT KaTropa is now tied at two games apiece after the former hacked out a 106-101 victory in Game Four on Sunday at the Smart Araneta Coliseum.

San Miguel used a strong push late in the third period to build enough cushion and held on tight down the stretch to get back in the series, which is now down to a best-of-three affair.

The first quarter of the contest was marked by a game of runs early before the Beermen made a late strong push to create a 31-22 separation by the end of the opening 12 minutes.

In the second period, Jayson Castro and Terrence Jones jolted the KaTropa to a 7-0 run in the first 12 minutes to come to within two points, 31-29.

San Miguel, however, survived the onslaught and continued to lead, 39-34, with six minutes to go behind import Chris McCullough.

But TNT kept coming, managing to tie the count at 45-all at the 3:18 mark after a dunk by Mr. Jones.

The KaTropa eventually completed the turnaround as the half drew to a close, up by a point, 52-51.

Another jostling took place in the early goings of the third canto, with TNT slightly ahead, 65-64, at the 5:44 mark.

The Beermen then called June Mar Fajardo’s number, going on a 12-0 blast in the next three minutes to push ahead, 76-65.

It was a swing that San Miguel would use to build an 82-69 advantage heading into the fourth frame.

TNT made attempts to get some real estate back to begin the final quarter but San Miguel continued to hold sway, 90-81, midway into the quarter.

But the KaTropa stayed within striking distance, 96-92, with two minutes remaining.

A putback by Mr. McCullough with 1:42 made it a six-point lead for the Beermen, 98-92.

Mr. Jones got back the two points 16 seconds later, 98-94.

The TNT import further pushed his team closer, 98-96, with two made free throws with 40 ticks remaining.

But Mr. Fajardo gave San Miguel more breathing space, 100-96, with a basket in the paint with 27 seconds to go.

TNT sued for time after to set up a play but Mr. Castro turned the ball over which Alex Cabagnot made them pay for with two points from the charity stripe to make it 102-96 with 16 seconds left.

A triple by Troy Rosario with 10 seconds remaining made it 102-99.

Mr. Cabagnot was sent to the free- throw line anew and made two points to stretch its lead, 104-99.

Mr. Jones scored off a drive to push TNT to within three points, 104-101.

But two free throws by Chris Ross after put the game away for San Miguel.

Mr. McCullough had another 20-20, finishing with 27 points and 22 rebounds to go along with four assists.

Mr. Cabagnot had 25 points while Mr. Fajardo tallied 22 markers.

Mr. Jones, meanwhile, was the high point man for TNT with 32 points on top 16 boards, six assists and six steals.

Mr. Rosario had 24 points and eight rebounds while Mr. Castro had 17 markers, eight rebounds and eight assists.

“Thank God for this win. It was an important game for us because we did not want to fall behind, 3-1, in the series. So salute to the players for getting this win,” said San Miguel coach Leo Austria after the game.

He was quick to say though that it was not easy playing TNT and they have to say on top of their game moving forward.

Game Five of the series is on Wednesday, Aug. 14, also at the Big Dome.

INDIVIDUAL AWARDS
Meanwhile prior to the game, the top individual awards for the tournament were handed out.

TNT’s Jones was named best import of the conference, beating San Miguel’s McCullough, Barangay Ginebra’s Justin Brownlee and Rain or Shine’s Carl Montgomery.

Mr. Jones became the third best import awardee for the TNT franchise, joining Silas Mills (Governors’ Cup, 1998), Jerald Honeycutt (Commissioner’s Cup, 2002, and Fiesta Cup, 2004), and Richard Howell (Commissioner’s Cup, 2013).

Best player of the conference, meanwhile, is Mr. Jones’s teammate Castro.

The Gilas Pilipinas veteran won the award over San Miguel’s Fajardo, Blackwater’s Ray Parks, Jr., Northport’s Robert Bolick and Columbian’s CJ Perez.

The BPC award is the fifth for Mr. Castro.

PFL: Stallion Laguna FC, Ceres-Negros winners in Aboitiz Pitch in Batangas

THE Philippines Football League made a return to the Aboitiz Pitch in Lipa City, Batangas, on Saturday with Stallion Laguna FC and Ceres-Negros FC emerging as winners.

The Stallions defeated Global Cebu FC, 4-1, while league-leading Ceres survived a gallant stand by Mendiola FC 1991 to emerge on top, 5-2.

It was a quick start for the Laguna team that saw Fitch Arboleda puncture the first goal of the match in the ninth minute.

Teammate Ruben Doctora then made it a 2-0 lead four minutes later.

Global was undeterred and kept coming back, eventually rewarded in the 45th minute when Charlie Beaton found the bottom of the net to narrow the gap at 2-1.

But before the first-half horn sounded, the Stallions managed to score another point in the added two minutes care of Abou Sy to make it a 3-1 count at halftime.

With firm control of the match, the Stallions made a quick kill at the start of the second half, with Jhan-Jhan Melliza making it a three-point separation for his team with a goal in the 63rd minute off a penalty kick.

Global could not recover from the hole and saw Stallion ran away with the win after.

The victory gave Stallion (6-3-2) the full three points and pushed it to 21 points, just a point down from second-running Kaya FC-Iloilo (7-1-2).

Global (1-0-8), for its part, slumped to its fourth straight defeat and continues to tailend with just three points to show for to date in the seven-team league.

Meanwhile earlier in the day, defending league champion Ceres continued to roll, topping Mendiola.

Newly acquired Robert Mendy scored four goals for his new team, three of which — 16’, 36’ and 33’ — coming in the first half to help Ceres to a 3-1 lead at the break.

Mendiola struck early in the second half to narrow the gap, 3-2, in the 49th minute on an Ash Flores goal.

But Mr. Mendy was quick to steady the ship for his team, scoring his fourth goal of the day in the 55th minute to make it a 4-2 count.

The two teams swung back-and-forth after before Bienvenido Maranon made it a 5-2 lead in the 90th minute of the match that put the game away for Ceres.

Ceres (9-1-0), with the win, is safely on top of the perch with 28 points while Mendiola dropped to a record of 3-1-7 with 10 points.

Later on Sunday, Kaya was to play Philippine Air Force FC at the Biñan Football Stadium in Laguna. — Michael Angelo S. Murillo

Excitement, charity highlighted anew at Resorts World Manila’s Run With Me X

THE AWARD-winning annual celebrity-led fun run for charity of Resorts World Manila (RWM) happens for a fourth year later this month with organizers promising yet again an exciting day of activities and gathering for a cause.

Happening on Aug. 25 at the SM MOA concert grounds, “Run With Me X” coincides with the integrated resort’s 10th anniversary, giving the event further significant and added motor for RWM to make it a bigger and better event.

For Run With Me X, RWM, which partnered with Runrio, Inc. for the staging, is once again opening four race categories — 32K, 21K, 10K, and 5K distances — with organizers expecting over 8,000 runners to participate, higher than the 5,000 who participated in last year’s edition.

Registration period is open until Aug. 24, with corresponding rates at P1,600 for 32K; P1,400 for 21K; P1,200 for 10K; and P1,000 for 5K.

All race kits will include singlet, race bib, timing chip, and hydration bottles. Race kits will also include finisher shirts and RWM commemorative finisher’s medals for 21K and 32K runners. 10K runners will likewise get an RWM commemorative finisher’s medal.

Five charity beneficiaries will share portions of the proceeds from the five celebrity-led teams.

Right Start Community Development, Inc., which aims to provide creative spaces for poor children, will be the beneficiary of the Red Team, led by Korina Sanchez, Gian Magdangal, OJ Mariano, and Myke Salomon.

HERO Foundation, which helps the families of fallen soldiers, will be the partner of the Yellow Team, led by Jeffrey Hidalgo, Norman Pascual, and Neil Perez.

Persons with disabilities-empowering Tahanang Walang Hagdanan, Inc. is the beneficiary for the Green Team which has Ara Mina, Chuckie and Yen Dreyfus, Polo Ravales, and Paulyn Quiza.

The Blue Team, led by Yael Yuzon, Jana Victoria, Will Devaughn, and Jay Kent, will have education for underprivileged youth-championing ERDA Tech Foundation as its partner-beneficiary.

EPCALM Adult Leukemia Foundation, meanwhile, will be it for the Orange Team, led by Rovilson Fernandez, Meg Imperial, Ray Gibson, and Ronnie Liang.

“Team Run With Me wins here. It’s all of us. Because running for charity would mean more funds for the different charitable institutions. No pushover teams this year,” said Joee Guilas, RWM’s head of corporate communications, at the press conference for the event on Aug. 8 at the Hilton Manila, highlighting how Run With Me X would be in equal parts exciting and beneficial.

For TV personality, model and magazine editor Fernandez, who has been participating in the running event since its inception in 2016, the effort that the runners for the event put into it is all worth it.

“I’m happy to be part of Resorts World’s charity run since the start. Running can be taxing at times but doing it for charity makes it really gratifying,” Mr. Fernandez said.

Last year, the charity event raised P3.5 million for YESPinoy Foundation, HERO Foundation, Right Start, Empowering Brilliant Minds Foundation, ERDA Tech, and EPCALM Adult Leukemia Foundation.

Interested parties may register online via www.runwithme.ph, via the RWM Mobile App, selected Olympic Village branches, or at Garmin branches in SM Megamall and SM Mall of Asia.

Visit www.rwmanila.com for more on Resorts World Manila’s 10th anniversary celebrations.

MLB: Odorizzi quiets Cleveland Indians as Minnesota Twins reclaim 1st in AL Central

LOS ANGELES — Max Kepler and Marwin Gonzalez homered, and Jake Odorizzi pitched 5 2/3 shutout innings to pick up his 13th win as the Minnesota Twins reclaimed sole possession of first place in the AL Central with a 4-1 victory over the Cleveland Indians on Saturday night in Minneapolis.

Luis Arraez had an RBI triple, and Ehire Adrianza and Jorge Polanco each had two hits for Minnesota, which snapped a season-long four-game losing streak.

Odorizzi (13-5) gave up six hits and four walks while striking out six. Odorizzi has allowed just 10 hits and two runs while striking out 19 in 17 innings in three starts against Cleveland this season.

Taylor Rogers gave up one hit while striking out two over the final two innings to earn his 18th save.

Yasiel Puig went 3-for-4 with a home run and also threw out a runner at the plate for Cleveland, which went 1-for-12 with runners in scoring position. It was just the 17th loss in the last 58 games for the Indians, who had overcome an 11 1/2-game deficit to move into a tie for first place on Friday night.

Adam Plutko (4-3) allowed four runs on nine hits over six innings. He walked one and struck out three.

Minnesota took a 2-0 lead in the fourth inning. Mitch Garver hit a two-out double down the left field line and scored on a triple by Arraez off the wall in right-center. C.J. Cron then singled in Arraez. It marked the first time in 40 innings that the Twins had taken a lead in a game.

Kepler led off the bottom of the fifth with his 32nd homer of the season, a 355-foot opposite-field drive into the flower bed in left.

Cleveland cut it to 3-1 in the seventh on Puig’s first home run with the Indians and 23rd of the season, a towering 455-foot drive deep into the second deck in left-center.

Gonzalez put the Twins back up 4-1 in the bottom half of the inning with his 13th homer of the season, a 414-foot shot to the back of the bullpen in left-center. — Reuters

Serena Williams, Naomi Osaka top Forbes list of best-paid female athletes

NEW YORK — Naomi Osaka’s Grand Slam title wins at the US and Australian Opens have helped catapult the Japanese tennis player up to second, behind Serena Williams, in Forbes’ list of the highest-paid female athletes over the last year.

Williams, a 23-times Grand Slam champion, topped the annual list for a fourth consecutive year with estimated total earnings of $29.2 million, the business magazine said.

Osaka’s total income grew to $24.3 million, driven mainly by her off-court earnings, soaring to an estimated $16 million from $1.5 million a year ago, but the Japanese still missed the cut for Forbes’ top 100 best-paid athletes list.

Williams is the only woman making it onto that list, coming in at No. 63.

Forbes said it compiled its list based on prize money, salaries, bonuses, endorsements and appearance fees between June 1, 2018 to June 1 this year.

US women’s soccer player Alex Morgan is the highest-placed non-tennis player on the women’s list at number 12, with Forbes putting her total earnings of $5.8 million.

Morgan’s income, which makes her the best-paid women’s soccer player in the world, is dwarfed by that of Barcelona forward Lionel Messi, who topped Forbes’ list of the best-paid athletes over the past year with $127 million.

The US women’s soccer team, who won a record-extending fourth World Cup this year, have filed a lawsuit against the country’s national soccer body demanding equal compensation with their male counterparts.

Of the top 15 on Forbes’ list of best-paid female athletes, 12 were tennis players. Indian badminton player P.V. Sindhu came in tied for 13th ($5.5 million), with Thai golfer Ariya Jutanugarn ($5.3 million) rounding out the top 15. — Reuters

Rogers Cup: Nadal to meet Medvedev for Montreal title after Monfils injury

MONTREAL — Rafa Nadal will play Russia’s Daniil Medvedev for the Rogers Cup title in Montreal on Sunday after injured Frenchman Gael Monfils withdrew from his semifinal match with the Spanish top seed on Saturday.

Medvedev topped Karen Khachanov in an all-Russian semifinal before Monfils announced he was no shape to face Nadal a couple of hours after injuring his left ankle in a quarterfinal win over Roberto Bautista Agut.

Eighth seed Medvedev prevailed 6-1 7-6(6) over Khachanov in a victory that will make him Russia’s top-ranked player on Monday but felt he should have finished his rival off earlier.

“I played amazing, but there were two moments in the match I should have won easier,” the 23-year-old Medvedev told ATP Tennis Radio.

“I was confident about myself and then there were some mistakes I should not have done. Finally, (I let Khachanov) back in the match.”

Medvedev was upset at letting a break advantage slip away on two occasions in the second set, including at 5-4 as he tried to serve out the match.

He also was unhappy that after he led the tie-break 2-1, Khachanov scored four consecutive points.

But Medvedev, who has not lost a set in the tournament, fought back to tie at 4-4 and after two more ties won the final two points and the match.

Frenchman Monfils also needed to win a tie-break to defeat Bautista Agut in the third set of their rain-delayed quarterfinal match.

Monfils won out 6-4 3-6 7-6(2) in a match that took two days to complete because of rain but the ankle injury was clearly hampering him and he withdrew from the tournament two hours later.

The ankle started bothering Monfils in the second set, but after a visit by a physio he elected to continue.

Bautista Agut won the set comfortably and the third went to a tie break which Monfils led 5-0 before sealing victory with a huge forehand winner after more than two hours.

Monfils said he was proud of the way he played on against Agut.

“I think I showed today I was a fighter,” he said. — Reuters

Rejected

Carmelo Anthony had to have been devastated that his request to join Team USA for the FIBA Basketball World Cup was turned down. Even as he had been experiencing one rejection after another of late, he figured with no small measure of optimism that Jerry Colangelo, managing director of USA Basketball, would consider adding him to the roster headed to China late this month. After all, he isn’t just any 35-year-old journeyman pro whose best days are decidedly behind him; he’s the country’s best-ever international player, among only four in hoops annals to have four Olympic medals and the only one in history with three golds in the Summer Games.

As decorated as Anthony has been in red, white, and blue, however, Colengelo didn’t think he would be helping the cause, even as a valuable mentor in the sidelines. In fact, he was seen as a negative. “I love Carmelo,” the executive told SI.com last week. “He made a great contribution. He was a very good international player. But for where we are and what we’re doing, that conceivably could have been a distraction. I understand why the request was made. He’s trying to reestablish himself. I think that has to be done in the [NBA].”

Indeed, Anthony’s ultimate goal is to latch on to a roster spot in the league. And, to this end, he, agent Leon Rose, and others in his team have been making the rounds and stirring up the pot in order to get traction for his campaign. He even appeared on ESPN First Take, fielding questions on his motivation to suit up anew even though he already boasts of a Hall-of-Fame-worthy resume. No doubt, his intent to redeem himself after an ignominious exit from the Rockets after just 10 games last year provides him with motivation.

The problem, to be sure, is Anthony’s age and dwindling skill set. The game has sped up considerably, and in such a way that his strengths — which manifest themselves most in midrange isolation situations — have become weaknesses. Pace has become much faster, with increased emphasis on high-efficiency shots either in the paint or beyond the three-point line. Unfortunately, these are areas where he doesn’t excel, and where he hasn’t seen fit to emphasize even when the writing on the wall was evident years ago. It’s why he flubbed his lone season with the Thunder, why he was then unceremoniously dumped by the Rockets, and why the rest of the NBA are wary of taking him in.

Enter Team USA and its seeming need for Anthony’s services. Thirty of the 35 players it included in its World Cup pool last year have withdrawn, and the dearth of marquee names looks to set him up for, at the very least, a leadership position for flag and country. Not so, and with reason. After all, he thrived in his Olympic Melo persona because he served as the escape valve of star-studded squads. With opponents focusing on teammates, he wound up taking open shots as an offshoot of decisive ball movement. And, needless to say, the shorter three-point line — coinciding with his sweet spots in NBA courts — helped.

Perhaps Anthony should prep himself for retirement. No one’s taking the bait stateside, and he’s too proud to take his talents to, say, Europe or China, where his career will most certainly find new lease on life. Considering how much he’s working to stay in shape, though, he’s bent on keeping his dream alive. And, for all his exertions, it’s just too bad the market isn’t.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

BSP chief signals more policy tweaks ahead

ANOTHER CUT in key policy rates as well as banks’ reserve requirement ratio (RRR) “can take place some time next month”, BSP Governor Benjamin E. Diokno said in an interview aired over ABS-CBN News Channel on Friday afternoon.

While the Monetary Board’s sixth policy review is scheduled on Sept. 26, the RRR cut may take place in one of the next non-policy-setting weekly meetings of the Monetary Board, Mr. Diokno said.

“The triple R cut can start next month. We will have a meeting in the next six weeks from now. And we’re going to discuss another possible 25-basis-point cut,” Mr. Diokno said when pressed on the timing of the next RRR reduction, after the phased 200 bp cut that brought the level to 16% for big banks and to six percent for thrift banks.

He said he remains committed to paring the RRR down to “single-digit level” when he ends his term — the remainder of the six-year term of the late BSP Gov. Nestor A. Espenilla, Jr. who died last Feb. 23 — in July 2023.

Describing even the currently reduced RRR as “still very high”, Mr. Diokno said “we are convinced that we still have to cut it”.

The timing of RRR cut, he said, will still depend on liquidity, as the BSP watches if reductions earlier this year — which are estimated to have released more than P200 billion into the system — resulted in lending to productive economic activities.

The central bank announced on July 31 that money supply growth steadied at 6.4% year-on-year to about P11.78 trillion in June — and edged up by about 0.3% month-on-month — even as it trimmed lenders’ RRR, the last phase of which took effect on July 26.

The next interest rate review on Sept. 26, he added, will consider “principally” August inflation rate scheduled to be reported by the the Philippine Statistics Authority (PSA) on Sept. 25, besides “what is happening externally” and consumer spending. Other economic growth-related data that will have been reported by the next monetary policy review are July factory output on Sept. 5 and July international merchandise trade five days afterwards.

The central bank’s policy-policy setting body on Thursday cut benchmark interest rates by a quarter percentage point, hours after the PSA reported that the economy grew at the slowest pace in four years at 5.5% in the second quarter, bringing first-half expansion to the same pace against an official 6-7% target for 2019, and two days after the statistics agency said that July’s inflation was the slowest in two-and-a-half years at 2.4%, taking the year-to-date pace to 3.3% against the BSP’s 2-4% target range for the year.

Mr. Diokno said on Friday that, upon reviewing projections after the release on Thursday of disappointing second-quarter GDP data, his staff determined that the “lower” end of the government’s “6-7% growth target is entirely doable”.

Malacañang on Friday said economic managers are taking steps to prod economic expansion faster in the quarters ahead. “While growth slowed down in the second quarter of this year, the Office of the President has been assured by our economic managers that this is simply a temporary setback,” Presidential Spokesperson Salvador S. Panelo said in a statement. — with M.T. Amoguis and C. A. Tadalan

Moody’s cuts Philippine growth forecast further

MOODY’s Investors Service has further reduced its projection for overall Philippine economic expansion, which disappointed at a four-year-low 5.5% last quarter and clocked in at the same pace in the first half against the government’s 6-7% target for 2019, even as it said “domestic demand” — especially government spending — should pick up this semester.

In its annual credit analysis on the Philippines, e-mailed to journalists on Friday, the credit rater said it “expects economic growth to recover from the temporary slowdown precipitated by the budget delay in the first half of 2019”.

The government had operated on a reenacted 2018 budget from January to April 15, when President Rodrigo R. Duterte signed this year’s national budget into law but vetoed P95.3 billion in funds that were not in sync with state priorities, slashing the total to P3.662 trillion.

The impact could be seen in official infrastructure and other capital outlays data showing that disbursements fell by 11.7% year-on-year to P311.4 billion last semester, missing a P392.9-billion program for that period by a fifth.

Moody’s slashed its projection for Philippine GDP expansion further to 5.8% for this year, from the six percent it gave at the end of May in the face of delayed budget enactment and from the 6.2% in had penciled in February. The country grew by 6.2% last year against the government’s 6.5-6.9% target for 2018.

“Our expectation of a recovery in domestic demand in the second half of this year and into next year underpins our full-year forecasts for real GDP growth of 5.8% in 2019 and 6.2% in 2020,” read the report, which said further that the “Philippines’ fiscal reform and stable economic growth support [the country’s] credit profile”.

At the same time, “[a]lthough the government has formulated aggressive catch-up plans for spending in the second half of the year, it is unlikely to fully execute its budget.”

The Philippines has a “Baa2” sovereign rating from Moody’s — a notch above minimum investment grade — with a “stable” outlook, indicating “a low likelihood of rating change over the medium term”.

Still, “the momentum for fiscal reform has been sustained, improving prospects for a further improvement in the Philippines’ fiscal profile.”

Moody’s said it still assesses the Philippines’ “economic strength” — in terms of economic structure, primarily reflected in economic growth, scale of the economy and wealth, as well as structural factors that point to a country’s long-term economic robustness and shock-absorption capacity — as “high”, with country’s $331-billion nominal GDP in 2018 larger than more than 70% of rated sovereigns but slightly below the $341-billion median for investment-grade sovereigns, while the Philippines’ economic output in 2018 was well above the “Baa”-rated median of around $240 billion.

The Philippines’ “institutional strength” score was “moderate(+)” on “the government’s demonstrated ability to pursue its economic and fiscal reform agenda in the face of increasing political noise” and the country’s “longer track record of sustaining improvements in its fiscal profile than its peers.”

The country’s “fiscal strength” is “moderate”, with “successive years of higher revenue leading to improved debt affordability, although the latter remains weak compared with most ‘Baa’-rated peers”.

“The outlook for revenue generation in the next two years appears to be strong on the back of tax reform and improved tax compliance,” the report read.

The government had been able to enact its most difficult, comprehensive reform package: the first one which slashed personal income tax rates but either raised or added levies on several other goods and services. It has also further increased excise tax rates on tobacco and allied products and is offering amnesty in order to further widen its tax base.

Still in the pipeline — targeted in the next two years — are proposals for higher excise tax rates for alcohol products, revisions to existing motor vehicle user charges, increases in the government’s share of mining revenue, a centralized framework for taxation of real property and a simpler capital income tax system.

But while “[t]he strong pro-administration majority in both houses of the legislature enhances the prospects for further reform… the government has a comparatively short window of about two years to pursue its legislative agenda,” Moody’s said.

“We expect campaigning to detract attention away from reform in the year prior to the next general election scheduled for 2022,” it explained.

“Moreover, the impasse between the House of Representatives and the Senate that led to the delay in the passing of the 2019 budget illustrates how political infighting can influence economic and fiscal outcomes, if somewhat temporarily.”

Finally, Moody’s sees a “low(+)” “event risk” — covering the country’s vulnerability to the risk that sudden events may severely strain public finances, thus increasing the country’s probability of default. Such risks include political, government liquidity, banking sector and external vulnerability risks.

• The country has a “low(+)” political risk in the Philippines, with President Rodrigo R. Duterte maintaining high public satisfaction ratings despite controversies. That, and overwhelming victory of candidates — especially for the House and the Senate — whom he had supported in the May 13 midterm elections “suggest overwhelming support for the government’s reform agenda”.

• The Philippines has a “very low(-)” government liquidity risk, reflecting “the government’s manageable gross borrowing requirements, low participation of nonresident investors in the local bond market, as well as sustained appetite among international investors for the government’s external, foreign-currency issuances”.

• Banking sector risk is “low(+)”, since “the Philippine banking system as a whole is well capitalized, profitable and competently managed, thus posing limited contingent risks to the government”.

• External vulnerability risk is “very low”, reflecting “structural reversion of the current account to a deficit and the persistence of the negative net international investment position, both of which place the Philippines as more susceptible to external shocks when compared with peers”.

The report said that the Philippines’ “rating is likely to be upgraded” on improvements in per capita income, revenue generation and debt affordability compared with higher-rated peers.

But it could be “downgraded if macroeconomic stability were to be threatened by unabated overheating pressures leading to a deterioration in fiscal and government debt metrics and an erosion of the country’s external payments position”.

“The reversal of reforms that have supported recent gains in economic and fiscal strength would also likely lead to a downgrade.”

Disappointing GDP data weighs further on investors’ mood

LOCAL EQUITIES mostly headed south as the week ended, extending weakness that marked Thursday as investors further digested news of the country’s slowing economic growth.

The bellwether Philippines Stock Exchange index (PSEi) trimmed 59.77 points or 0.75% to close at 7,854.39 on Friday, while the broader all shares index shed 34.21 points or 0.71% to end at 4,784.11.

“Investors digested the latest releases of GDP (gross domestic product) and the move of the BSP (Bangko Sentral ng Pilipinas) to reduce rates,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

“As anticipated by the market, the central bank cut benchmark interest rates anew by 25bps (basis points), as well as inflation forecast for 2019, hours after PSA (the Philippine Statistics Authority) reported the economy cooling down to a four-year low.”

The Philippines reported a 5.5% GDP growth in the second quarter on Thursday, the slowest in four years, taking overall economic expansion last semester to the same pace against the government’s 6-7% target for this year. That was followed hours later by the Monetary Board’s decision to cut the key policy rates by 25 bps for the second time this year after a reduction in May in a bid to prod economic activity.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said the lack of catalysts was also a factor in the slow movement of shares on Friday. “Movement could remain sideways in the near term as the PSEi trades with a lack of clear immediate catalysts,” he said in an e-mail.

Four of the six sectoral indices were losers on Friday, led by property which declined 1.47% or 61.53 points to end at 4,100.02. Services gave up 20.24 points or 1.25% to close at 1,591.59, industrials lost 1.16% or 127.1 points to end 10,804.27, while holding firms dropped 0.59% or 45.72 points to finish 7,630.42.

Finishing in green territory were mining & oil, which increased 0.36% or 29.61 points to 8,152.22 and financials, which climbed 0.22% or 4.13 points to 1,851.60.

Stocks that declined outnumbered those that gained 114 to 84, while 47 others ended the day flat.

Friday saw 2.826 billion shares worth P6.167 billion change hands, compared to Thursday’s 834.292 million worth P6.25 billion.

Investors abroad remained bearish for the fifth straight trading day with P670.933 million in net sales. — Denise A. Valdez

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