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Peso climbs on weak US data

THE PESO ended stronger against dollar yesterday following weaker-than-expected US data on retail sales, which fanned expectations of another policy rate cut by the US Federal Reserve.

The local unit closed at P51.42 against the greenback on Thursday, stronger by 17 centavos from P51.595-per-dollar close last Wednesday.

Dollars traded yesterday climbed to $1.29 billion from $1.16 billion the previous day.

Two traders interviewed said the peso’s strength can be attributed to the decline in US retail sales that “heightened expectations” of another rate cut by the Fed.

“The peso strengthened as the release of weaker-than-expected US retail sales report heightened expectations of another US policy rate cut from the Federal Reserve meeting this month,” the trader said in an e-mail.

US retail sales slumped to 0.3% in September as households cut back spending on motor vehicles, building materials, hobbies and online purchases. This was the first drop since February. Data for August was revised up to show retail sales rising 0.6% instead of 0.4% as previously reported.

“It might have increased the chances of more stimulus in the coming months so the market is already pricing in maybe one to two more cuts this coming month or at the end of the year,” the second trader said by phone.

Back home, the second trader said local developments such as the August remittances data and the cut in the reserve requirement rate (RRR) for bonds issued by banks were all “good news.”

“All news recently is pointing toward peso-strengthening bias…so it’s just a matter of time,” the second trader said.

For today, the peso is expected to rise further on likely weak US data.

“The local currency might continue to appreciate ahead of likely weaker US housing and industrial production data overnight,” the first trader added.

The first trader sees the peso settling between P51.25 and P51.45 today. — BML with Reuters

Bourse extends gains on earnings anticipation

THE MAIN INDEX extended gains on Thursday despite slow trading throughout the session, as investors turned bargain hunters in anticipation of corporate earnings reports.

The Philippine Stock Exchange index (PSEi) improved 15.25 points or 0.19% on Wednesday to close at 7,930.55 — again the highest in nearly a month or since Sept. 17’s 7,932.23 — while the all-shares index inched up 7.24 points or 0.15% to 4,770.93.

“Our index ended positive today due to last-minute buying despite the thin volume and weak US retail sales data released last night. The last-minute buying activity could be a bargain-hunting move among investors as they anticipate more earnings disclosure from index stocks,” Timson Securities, Inc. Trader Jervin S. De Celis said in a text message.

US reported a 0.3% drop in retail sales in September, the first fall in seven months, as consumer spending on cars, building materials and online items slowed.

The report dragged Wall Street down during Wednesday’s trading, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite sliding 0.08%, 0.2% and 0.3%, respectively.

Most major Asian bourses followed suit: Japan’s Nikkei 225 and Topix indices by 0.09% and 0.45%, respectively, South Korea’s KOSPI by 0.23%, Singapore’s Straits Times index by 0.41% and China’s Shanghai SE Composite by 0.05%.

On the other hand, Hong Kong’s Hang Seng index gained 0.69% and India’s S&P BSE Sensex index increased by 0.84%.

For Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco, investors abroad helped spur the bourse for the second straight day, with net foreign buying growing 28.55% to P1.08 billion from Wednesday’s P841.28 million.

At the same time he noted the persistently low value turnover at 587.99 million shares worth P5.71 billion from Wednesday’s 715.39 shares worth P5.55 billion.

“Foreign funds… helped today with net foreign inflows amounting to P1.08 billion. Our worry however is the daily value turnover which has been lethargic lately,” Mr. Tantiangco said in a text message.

“So far this week, average value turnover stands at P4.9 billion, lower compared to the year-to-date average of P7.47 billion. This shows that investors are still on a cautious stance, that many are staying on the sidelines waiting for a catalyst, particularly the 3Q company reports.”

Four out of the six sectoral indices gained on Thursday: industrial by 37.03 points or 0.34% to 10,787.09, financials by 12.45 points or 0.67% to 1,848.34, property by 10.59 points or 0.25% to 4,185.98 and services by 1.39 points or 0.09% to 1,525.74.

The remaining two declined: mining and oil by 129.4 points or 1.42% to 8,956.66, and holding firms by 12.77 points or 0.16% to 7,724.01.

More stocks advanced than declined, 93 to 79, while 57 names were unchanged. — Denise A. Valdez

VP case resolution good for investor confidence

BUSINESS ORGANIZATIONS said an immediate resolution of the now three-year running electoral protest case over the vice-presidential seat would improve investor confidence as policy makers would be spared from “political distraction.”

“The signatory institutions believe that an expeditious resolution of the Protest would spare our policy makers and leaders from the political distraction — at a time when focus on more fundamental challenges facing the country is crucial,” five groups said in a joint statement released Thursday.

The institutions are the Bishop-Businessmen’s Conference, Financial Executives of the Philippines, Institute of Corporate Directors, Makati Business Club (MBC), and the umbrella group Judicial Reform Initiative.

In the statement, they also welcomed the decision of the Supreme Court (SC), sitting as Presidential Electoral (PET) last Tuesday, to release the report on the initial recount for the electoral protest filed by losing candidate Ferdinand R. Marcos, Jr.

They said the PET’s resolution shows the court’s commitment to “transparency and fairness.”

“In the face of turbulence in both the domestic and international markets, the decision provides confidence in the Philippine Judiciary’s commitment to the rule of law-so fundamental to investor confidence,” the groups said.

The MBC, in a separate statement on Wednesday, also said that they hope the court’s decision “is a step toward dismissing the protest, and reducing the political and judicial uncertainty that came with it — uncertainty that manifests risk premiums for those who would invest in Philippine jobs and industries.”

Mr. Marcos filed the election protest in 2016 after losing to Vice President Maria Leonor G. Robredo.

The PET, which has been anticipated to decide on the case in recent weeks, instead ordered the release of the recount report to Ms. Robredo and Mr. Marcos.

The report, submitted by Associate Justice Alfredo Benjamin S. Caguioa, contains the result of the vote recount in the pilot provinces of Iloilo, Camarines Sur, and Negros Oriental.

The pilot provinces were chosen by Mr. Marcos based on the claim that these areas are where cheating occurred during the May 2016 elections.

THE PET also asked the parties to comment on the report and submit their respective memorandum regarding the third cause of action filed by Mr. Marcos, which is to annul the vice presidential result in the provinces of Lanao del Sur, Basilan, and Maguindanao.

SC Public Information Chief Brian Keith F. Hosaka earlier said Mr. Caguio and Associate Justice Antonio T. Carpio dissented from the PET’s order.

Chief Justice Lucas P. Bersamin on Wednesday said the PET ruling is part of due process.

Ms. Robredo’s legal counsel, Romulo B. Macalintal, said on Tuesday that they “would still insist that the petition, the protest of Mr. Marcos should be dismissed.”

“On the basis of the Caguioa report, on the basis of the revision reports that we have, there is no substantial discovery proven by Mr. Marcos in his election protest,” he said. — Vann Marlo M. Villegas

Duterte sustains minor injuries from bike accident

PRESIDENT RODRIGO R. Duterte obtained minor injuries after falling off his motorcycle late Wednesday evening, Senator Christopher Lawrence “Bong” T. Go told reporters Thursday.

Sumemplang,” said Mr. Go, former special assistant to the president, which roughly means topple or fall over.

The President, a known bike enthusiast, and Mr. Go had just arrived in Malacañang from attending the wake of Miguel Alvir Barretto at the Heritage Memorial Park in Taguig City when the former requested to take a motorcycle ride at around 11 p.m.

Bilang rider po, nami-miss na po ng Presidente na mag-motor (As a rider, the President misses driving a motorbike),” he said, adding that it was permitted by the Presidential Security Group.

A second bike he rode, narrates Mr. Go, was “a bit high” and Mr. Duterte had difficulty at a turn. He said the President hurt his left elbow and was also feeling pain on his hip.

The 74-year-old President was not immediately checked by a doctor following the incident, but Mr. Go said he will “insist” on a medical consultation within the day.

Mr. Go also said he had suggested that Mr. Duterte, who has been a biker for 31 years now, to shift to a “scooter,” which is easier to drive.

Presidential Spokesperson Salvador S. Panelo, for his part, gave assurance that Mr. Duterte remains in good condition after the incident.

“I would like to assure the nation that the President is safe, in good hands and in good health. There was an accident, we confirm that. Last night, he rode in his motorcycle, but after he parked his motorcycle his shoe, naipit (got stuck), he was trying to reach for it, natumba siya (he fell over),” Mr. Panelo said in a briefing.

Mr. Panelo, who wasn’t present when the incident happened, said his statement was the official account of the mishap where the President obtained a “slight bruise” on his elbow and knee. — Charmaine A. Tadalan

Panelo brushes off ‘lawyering’ for Albayalde remarks

PRESIDENTIAL SPOKESPERSON Salvador S. Panelo has brushed off observations that he seemed to be “lawyering” for resigned Philippine National Police chief Oscar D. Albayalde who has been accused of involvement in the 2013 drug recycling scheme in Pampanga.

“My statement during the press briefing with the Malacañang Press Corps last Monday, October 14, was an honest assessment of a public proceeding and was an exercise of the freedom of speech for which every Filipino citizen is entitled,” Mr. Panelo said in a statement Thursday.

Mr. Albayalde has been accused of intervening in the implementation of the dismissal order issued against the thirteen Pampanga cops involved in the drug recycling scheme. Mr. Panelo on Monday sided with Mr. Albayalde, who claimed his innocence after hurdling three investigations without facing any charges.

Mr. Panelo said the testimonies against Mr. Albayalde were “hearsay” or weak.

“It is basic that a conclusion of guilt should be pronounced only after an investigation or hearing, or a senate inquiry for that matter, has been terminated… My remarks cannot — and should not — be viewed as a challenge or an affront to the Senate Blue Ribbon Committee, its chairmanship or its present investigation,” Mr. Panelo said.

The committee, led by Senator Richard J. Gordon, was set to release its findings on the alleged ninja cop operation, as well as other anomalies in the New Bilibid Prison on Thursday evening. — Charmaine A. Tadalan

Bersamin takes a bow

CHIEF JUSTICE Lucas P. Bersamin leaves his post today, Oct. 18, as he reaches the retirement age of 70. Mr. Bersamin, who earned his law degree from the University of the East in 1973 and ranked ninth in the Bar examinations the same year, served in the judiciary since November 1986 as judge of Quezon City Regional Trial Court (RTC) Branch 96. He was in private practice before joining the government. He was then appointed to the Court of Appeals (CA) justice in March 2003 before his appointment as SC associate justice in 2009 by then president Gloria Macapagal-Arroyo. The Judicial and Bar Council has nominated Associate Justices Diosdado M. Peralta, Estela M. Perlas-Bernabe and Andres B. Reyes, Jr. for the position of chief justice. In his speech last Monday, the retired chief justice urged judiciary employees to remain loyal to the rule of law and the Constitution. In the latest Social Weather Stations survey for the third quarter of this year, Mr. Bersamin maintained a “moderate level rating” at +16 in September from +13 in June. According to the survey, 35% were satisfied and 19% were dissatisfied of the retiring magistrate. The Supreme Court’s satisfaction rating, on the other hand slipped from very good to good. Mr. Bersamin said he does not know the basis of the rating but “whatever comes out of it, we react to it but not to be angry.” “(W)hen people tell you, o, may muta ka…syempre alisin mo ‘yung muta diba? (you got dirt in the eye… of course you will take it out)… That’s just putting it bluntly but that is, in short, what we do when we have negative publicity.” — Vann Marlo M. Villegas

BARMM holds consultations for 3-year investment priorities plan

AGRICULTURE AND fisheries remain the priority sectors for investments in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) as it goes through the transition period until 2022. BARMM Minister of Trade, Investment and Tourism Abu Amri Taddik, in a statement from the regional government, said they want to tap the region’s “vast lands and rich water resources” as they plan for attracting more businesses. The BARMM Regional Board of Investments (RBOI) is holding a series of public consultations for the 2020–2022 investment priorities plan (IPP). The first was held in Cotabato City, another in Zamboanga City on Wednesday, and the third is scheduled in Iligan City on Oct. 22. RBOI Chairman Ishak V. Mastura said the IPP would list of economic activities that will serve as basis for granting of incentives to investors. The “IPP aspires to promote investments in preferred activities and sectors that will have direct and positive impact on the lives of the Bangsamoro people and sustain peace,” the regional government said.

DPWH fast-tracking P261M interchange to Philippine Arena for SEA Games

AN INTERCHANGE project in Bulacan that will provide direct access to the Philippine Arena will be completed in time for the opening of the 30th Southeast Asian (SEA) Games on Nov. 30, the Department of Public Works and Highways (DPWH) announced Thursday. In a statement, DPWH Secretary Mark A. Villar said the P260.8-million Ciudad De Victoria Interchange Overpass Bridge and Bypass Road is “being rushed for completion” with “round-the-clock construction works” being implemented. The project will have a road access connected to the North Luzon Expressway (NLEX) in Bocaue and will serve as an alternate road to the congested Governor F. Halili Road in Sta. Maria, Bulacan. It is also seen to address “the usual heavy traffic situation and queuing of vehicles” at the Bocaue interchange. “We will have better accessibility to Philippine Arena come SEA Games grand opening in November,” said Mr. Villar. DPWH also said that a 1.91-kilometer road from MacArthur Highway to the Bocaue municipal center will be improved and a 1.3-kilometer road from the Philippine Arena to the existing Patubig Road in Marilao, Bulacan will be constructed.

Emergency teams remain on alert as Oct. 16 Mindanao earthquake damage assessed

AUTHORITIES CONDUCTED infrastructure damage assessment while remaining on high alert Thursday after a magnitude 6.3 earthquake shook many parts of Mindanao at around 7:30 p.m. Wednesday, with the epicenter in Tulunan, a town in Cotabato province located in the central part of the island. The National Disaster Risk Reduction and Management Council (NDRRMC), in its Oct. 17 situation report, confirmed two people died and at least 27 were injured from the tremor. Initial reports show damage in 29 infrastructure, including houses, schools, local government offices, and other public buildings. Among the biggest damage was at the Gaisano Mall in General Santos City, where a fire broke out minutes after the earthquake and firefighters were still battling the blaze as of Thursday morning. Department Public Works and Highways (DPWH) Secretary Mark A. Villar said the regional and district engineering offices in Mindanao have been instructed to deploy teams “to immediately conduct rapid damage assessment and needs analysis” for repairs to ensure public safety. The DPWH regional offices have so far reported that all national roads in Mindanao are passable. In the meantime, classes and work in government offices were suspended in most parts of Region 12 (SOCCSKSARGEN composed of South Cotabato, Cotabato, Sultan Kudarat, Sarangani, and General Santos City) as well as in parts of Region 11 (Davao).

POWER SUPPLY
Meanwhile, Mindanao’s power situation is back to normal after the tremor, the Department of Energy (DoE) said as it called on the public to be vigilant in reporting toppled distribution and transmission poles in their areas. “As of this reporting, there are no damages to both upstream and downstream oil facilities,” the DoE said in its update on Thursday morning. “The power transmission backbone in Mindanao remains intact,” it said, adding that updates will be provided. DoE also said that the National Grid Corporation of the Philippines has mobilized its line personnel to conduct line assessments and restorations, if needed. The National Electrification Administration (NEA), in a separate statement, also said affected power distribution services in some areas have returned to normal. NEA said that based on the monitoring report of its Disaster Risk Reduction and Management Department as of 8 a.m. Thursday, all electric cooperatives (ECs) that experienced power interruptions due to the tremor are now back to normal operations. Eight electric cooperatives serving parts of Regions 11 and 12 were affected. NDRRMC said the regional DRRM offices are continuously monitoring all affected areas and helping local governments deliver response actions where needed. The Philippine Institute of Volcanology and Seismology (Phivolcs) recorded 251 aftershocks as of 7 a.m. Thursday, almost 12 hours after the main shock. — with a report from Victor V. Saulon

Nation at a Glance — (10/18/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (10/18/19)

DDB Worldwide Chief Executive Officer Wendy Clark arrives in Philippines for DigiCon 2019

MANILA, October 17, 2019 – DDB Worldwide Global Chief Executive Officer Wendy Clark visited the Philippines to give the Opening Keynote address on the second day of this year’s DigiCon, the largest gathering for the digital industry in the Philippines, happening October 16 to 18 at the Philippine International Convention Center in Pasay City.

An accomplished communications executive who champions innovation and advocates diversity and collaboration, Clark is a big part of the success of DigiCon LEAP 2019 as one of its international speakers. She discussed creativity and leadership during her talk.  

Organized by the Internet and Mobile Marketing Association of the Philippines (IMMAP), DigiCon adopted “Leap” as its theme this year to solidify its status as the learning and networking experience that unlocks digital marketing excellence for its stakeholders.

 

Visit to DDB Group Philippines

After her DigiCon engagement, Clark took time to meet with the executives of DDB Group Philippines led by its Group Chairman and CEO Gil G. Chua, who was more than glad to welcome Clark to the Philippines – her first time in Manila.

“Given DDB Group Philippines’ long-held diversity in management and commitment to have women equally represented in our senior management group, we are delighted to have Wendy as our global CEO. We are even more grateful to have her with us in Manila to share her views about the changing marketing communications landscape and give her refreshing take on our profession, as well as to meet up close with our employees and clients,” Chua said.

“I am thrilled to meet with our teams, clients and leaders throughout Manila, and to participate in DigiCon 2019,” said Clark. “The energy, agility and creativity coming from the Philippines is exceptional. Gil has masterfully led DDB Philippines for almost 30 years and the clients here are a source of tremendous pride for the DDB network.”

The first woman to serve in a global chief executive role in Omnicom’s history, Clark leads over 200 offices and 11,000 employees worldwide. Prior to this, she served as CEO of DDB North America leading the region’s turnaround by securing significant new business wins, and redefining the modern day advertising agency to serve global clients. 

DDB has notably won multiple accolades under Clark’s leadership, including recognition at Cannes Lions as the #2 most creative Network of the Year. DDB Worldwide has also been named Network of the Year by One Show, D&AD, and was a finalist for Network of the Year at the 2019 Clio Awards. 

Clark has been awarded across the marketing communications industry for her contributions to businesses and people, including championing diversity. She was named “one of the most important women in advertising” and Executive of the Year by Advertising Age and was also awarded the Matrix Award from New York Women in Communications. She Runs It named Clark Advertising Woman of the Year, and she was named the Brand Refresher on Fast Company’s top ten list of innovative Business Disruptors. Clark’s efforts were formally recognized in 2007 upon her induction into the American Advertising Federation’s Advertising Hall of Achievement. 

Known across the globe, DDB Worldwide is an international marketing communications network owned by the Omnicom Group Inc., one of the world’s largest advertising holding companies.

IPRI 2019 and banning brand

“Man… had still in himself the great foundation of property… when invention and arts had improved the conveniences of life, was perfectly his own, and did not belong in common to others.”

— John Locke,
Second Treatise on Government
(1690)

About two centuries before the concept of intellectual property rights (IPR) was formally articulated and legislated in many countries, the great British classical liberal thinker John Locke has already argued that such inventions and arts are private property and not societal, collective, or communal property.

I used that quote when I presented my paper during the global launching of the “International Property Rights Index (IPRI) 2019 Report” at the Fairmont Hotel in Makati on Oct. 16.

IPRI is an annual study and published by the Property Rights Alliance (PRA, Washington DC) in partnership with close to a hundred independent and market-oriented think tanks worldwide.

During the formal launch, PRA Executive Director Lorenzo Montanari discussed the philosophy behind IPRI and its annual reports. He said that private property rights are human rights.

IPRI 2019 author Dr. Sary Levy-Carciente, an academic economist from the Universidad Central de Venezuela and a Fulbright Visiting Scholar at Boston University, Center of Polymer Studies, discussed the components, sub-components and data sources of IPRI. The results of IPRI 2019 covering 129 countries, vs IPRI 2018 covering 125 countries can be seen in the table.

The Philippines’ performance in 2019 over 2018 can be summarized as: (1.) an improvement in overall IPRI rank, 67th/129 vs 70th/125, also in overall score, 5.31 vs 5.22; (2.) an improvement in PPR rank, 60th/129 vs 63rd/125, score is the same; (3.) an improvement in IPR rank, 58th vs 62nd; and, (4.) a deterioration in LPE, 102nd/129 vs 95th/125, although score has barely changed. Meaning other countries simply improved significantly in LPE compared with the Philippines.

The keynote speaker before the launch was Department of Trade and Industry Secretary Ramon M. Lopez. Mr. Lopez recognized the improvement in the Philippines’ overall ranking and noted improvements in their mandates like the rising number of IPR registrations like utility models, patents, and trademarks. He also noted that the Ease of Doing Business and Anti-Red Tape laws were created only last year and this year, hence the gains are not yet fully captured in IPRI 2019 results. So we can expect an improvement in the Philippines’ ranking in IPRI 2020 and 2021. Good point, Mr. Lopez.

IPRI 2019 has several cases studies, including my paper, “Banning Brand — Economic and Consumer Impact of Plain Packaging.”

It is surprising that while the original target of banning branding on packaging and using plain packaging instead — using largely graphic warnings, bland and non-colorful marks with no brands but with the names in very small type — was tobacco, recent moves and proposals are to extend banning branding among basic consumer items — candies, crisps, sweets, high sugar drinks, soda, and even chocolates. The new goal is to fight obesity and non-communicable diseases by demonizing major brands and companies that produce these goods, and these proposals are more pronounced in UK.

I showed a critique to these moves in UK by Ron Cregan, founder of Endangered Species. He wrote:

“Simplifying the design, construction and manufacturing of consumer packaging effectively lowers, and even removes, the barriers to entry for counterfeiters. Without this complexity, plain packaging allows criminal gangs to copy and reproduce authentic and legitimate products with relative ease.”

Banning brands is ineffective at achieving policy goals, It damages the IPR environment, and cedes market share to criminal syndicates that prefer to remain anonymous rather than earn a reputation.

IPRs like trademarks and brands should be protected — for consumer choices, for investment protection, even for government taxation and battling criminality and terrorism — and not prohibited.

There were three reactors to my presentation. Director General of the Intellectual Property Office of the Philippines Josephine Santiago, FEF Fellow and trade lawyer Kristine Alcantara, and vice-chair of the Philippine Chamber of Commerce and Industry’s IPR committee, Dmitri Roleda.

After the launch, Lorenzo and Dr. Carciente also visited some government offices like the office of Senator Koko Pimentel, the Chairman of the Philippine Competition Commission Arsenio Balisacan, and the Chairman of the Optical Media Board Anselmo Adriano.

It is important that the sanctity of private property, physical and intellectual property, should be upheld always. Inventors, composers, writers, artists who produce original and innovative products and services should be rewarded with such recognition.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com