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Phl economy still strongest this year — RCBC
The Philippine economy will remain among Asia’s strongest in the fourth quarter despite a possible higher interest rate because of strong consumer demand for certain products and services and more employed Filipinos, the chief economist of Rizal Commercial Banking Corporation said Saturday. “This growth forecast is still among the fastest in the region because our economy is doing well,” RCBC’s Michael Ricafort said. The World Bank recently downgraded this year’s Philippine economic growth to 5.6 percent from 6 percent due to inflation risks, apart from lower government spending and weaker demand for exports. However, it is still higher than China’s 5.1 percent, Indonesia’s 4.9 percent, and Malaysia’s 4.3 percent growth forecast. Ricafort said the Bangko Sentral ng Pilipinas (BSP) might raise its policy rate this year to slow inflation to 4 percent by year-end after it accelerated again to 6.1 percent last month. “The BSP is working to bring down prices of goods and services. As an unintended consequence, the economy could slow down. Borrowing costs for business owners also increase and consumer demand weakens,” he said. Ricafort said global oil prices have started falling which could discourage the central bank from raising its rate drastically. “Global oil prices have declined to $82 to $83 per barrel from a peak of $95 per barrel last month or since the war between oil-rich countries Russia and Ukraine began,” the economist said. He also expected a downtrend in rice prices starting this month as he said local farmers have begun collecting fresh harvests. “Inflation quickened last month mainly from higher prices of rice which accounted for nearly 9 percent of the inflation basket and grew 17 percent year-on-year,” Ricafort said. While a higher interest rate aims to slow consumption, Ricafort said the continued flow of remittances from overseas Filipino workers, or at least 3 percent growth yearly will still support substantial levels of consumer spending, especially during the Christmas season. “That is more than $40 billion a year. That’s the fourth largest in the world after India, China and Mexico,” the economist said. He added more Filipinos or 800,000 could earn from business process outsourcing or BPO this year as the industry’s revenue could rise from $32.5 billion to $59 billion based on data from the Contact Center Association of the Philippines. Another growth area is tourism, which Ricafort said saw 4 million foreign visitors last month, nearing the 4.8 million full-year target of the government. He added higher productivity among Filipinos is also expected as the country’s unemployment rate declined to 4.4 percent in August from 4.8 percent in July, based on data from the Philippine Statistics Authority. Moving forward, Ricafort said the government must improve science and technology education for higher quality jobs and increase spending on infrastructure amid the full reopening of most economies. “We are now fully reopened. Students are also back in schools which encourages putting up food businesses. Labor market in the US also improved which will affect export trade,” he said. Ricafort added the government could continue distributing financial and other assistance to farmers to control inflation. He believed the inflation rate will approach 3 percent next year, close to the ideal 2 percent for healthier economic growth. The post Phl economy still strongest this year — RCBC appeared first on Daily Tribune......»»
Business confidence up among Japan’s big manufacturers
Confidence among Japan's largest manufacturers rose as business conditions improved for the second-straight quarter, a key survey showed Monday. The Bank of Japan's closely watched quarterly Tankan survey is considered the broadest indicator of how Japanese businesses are faring. It reports the difference between the percentage of firms that are upbeat and those that see conditions as unfavorable. A positive figure means more businesses feel optimistic than pessimistic. Among major manufacturers, business confidence rose to plus nine from plus five three months earlier, the survey showed. The headline figure -- the highest level since June last year -- came after the first improvement in seven quarters in July, and beat market expectations of plus six. Optimism also grew among non-manufacturers, from plus 23 to plus 27, which was the sixth-straight quarterly improvement and the highest level since November 1991 and against market expectations of plus 24. Positive figures in the survey are "driven by a strong automotive industry buoyed by the resolution of the semiconductor supply shortage that has plagued the industry this year," Hiroyuki Ueno, senior economist at Sumitomo Mitsui Trust Asset Management (SuMi TRUST), said ahead of the survey's release. "In the non-manufacturing sector, the continued boom in inbound travel is supporting business confidence," he said. Analysts have said the BoJ's latest survey is among the key data affecting the central bank's policy decisions. The post Business confidence up among Japan’s big manufacturers appeared first on Daily Tribune......»»
Should BSP defend the peso?
Amid reports that the Philippine peso is now among the worst-performing currencies this quarter, the Bangko Sentral ng Pilipinas is said to be mulling over intervening to defend the currency at P57 to the US dollar in hopes of arresting its slide. However, it also said it won’t intervene much if the peso slides along with other currencies. In light of present-day realities, should the BSP proceed with an intervention? As we all know, the exchange rate policy is a critical aspect of a country’s economic strategy, influencing its trade balance, inflation rates, and overall economic stability. A fixed rate of P57 to the dollar implies stability and predictability for businesses engaged in international trade. A stable exchange rate can foster investor confidence, attract foreign direct investment, and stimulate economic growth. On the other hand, a flexible exchange rate allows for adjustments in response to changing economic conditions, potentially aiding in external competitiveness. One of the primary arguments in favor of defending the Philippine peso at P57 to the US dollar is stability. A fixed exchange rate provides businesses with a clear and unchanging benchmark for international transactions, reducing uncertainty and mitigating risks associated with currency fluctuations. This stability can attract foreign investors, offering a predictable business planning and investment decisions environment. Moreover, defending the peso at P57 may help control inflation. A stable exchange rate can contribute to price stability by preventing imported inflation. If the peso depreciates significantly, the cost of imported goods and services will rise, leading to higher inflation rates. By defending the peso at P57, the central bank can act as a bulwark against inflationary pressures, ensuring the currency’s purchasing power remains relatively constant. In terms of trade dynamics, a fixed exchange rate can be advantageous. A strong and stable peso makes imported goods more affordable for consumers, contributing to a higher standard of living. Additionally, it can encourage domestic industries by making exports more competitive in international markets. This could lead to increased export-led economic growth, job creation, and reduced trade deficits. While defending the Philippine peso at P57 to the US dollar offers certain advantages, there are also compelling arguments against such a fixed exchange rate. One major concern is the loss of monetary policy autonomy. In a fixed exchange rate regime, the central bank’s ability to independently conduct monetary policy is limited, as it must adjust interest rates to maintain the targeted exchange rate. This lack of flexibility can be a significant drawback, especially in the face of changing economic conditions. Furthermore, a fixed exchange rate may not reflect the true market equilibrium. If the peso is overvalued at P57 to the dollar, it could lead to a loss of competitiveness for Philippine exports. This might hinder economic growth in the long run as industries struggle to compete globally. Additionally, an overvalued currency could contribute to persistent trade deficits, as the cost of imports remains relatively low. Another consideration is the potential for speculative attacks. If market participants believe that the fixed exchange rate is unsustainable, they may engage in speculative activities to profit from an anticipated devaluation. This can lead to increased pressure on the central bank’s foreign exchange reserves, making it challenging to maintain the targeted exchange rate. In conclusion, whether the central bank should defend the Philippine peso at P57 to the US dollar is nuanced, requiring careful balancing of economic objectives. While a fixed exchange rate can offer stability, attract investment, and control inflation, it comes at the cost of reduced monetary policy autonomy and potential distortions in trade dynamics. Ultimately, the central bank must consider the broader economic context, international market forces, and the long-term sustainability of its exchange rate policy. Flexibility and adaptability may be vital in navigating the complexities of the global economic landscape while fostering a resilient and competitive domestic economy. The post Should BSP defend the peso? appeared first on Daily Tribune......»»
BSP restricts FX changer
The Bangko Sentral ng Pilipinas, or BSP, has directed foreign exchange trader Riyben Foreign Exchange and its sub-agents to stop operating due to lack of registration documents from the central bank. In a statement released Monday, the BSP said Riyben Foreign Exchange skipped application for registration to establish and operate as a money service business or MSB. For this reason, the BSP disqualified the company from proceeding with its registration and obtaining a license to operate. Riyben Foreign Exchange is owned by Benjamin de Guzman and located at San Juan Olivarez Plaza, San Jose, Tagaytay City, Cavite. “The BSP’S Monetary Board has disqualified Riyben Foreign Exchange and any sole proprietorship owned and/or controlled by the owner/operator from registering with the BSP, and/or obtaining a license with the BSP to engage in any activity that is authorized or supervised by the BSP, for operating as MSB without prior BSP registration,” the central bank said. Under BSP’s ambit The BSP is authorized to require business registrations of non-bank financial institutions such as MSBs as a way to prevent money laundering through remittances, foreign exchange, or fund transfers. “The above disqualification is pursuant to Section 901-N of the BSP’s Manual of Regulations for non-bank financial institutions and is part of the BSP’s efforts to address the proliferation of entities engaged in the operation of unauthorized MSBs,” BSP said. The post BSP restricts FX changer appeared first on Daily Tribune......»»
UBS’s Credit Suisse takeover, ‘deal of the century’?
Did banking giant UBS make "the deal of the century" when it bought one of the world's biggest banks for a pittance as it teetered on the edge of the abyss? Switzerland's largest bank was in March strong-armed by Swiss authorities into a $3.25-billion takeover of Credit Suisse, to keep its closest domestic rival from going under. At the time, investors gasped at the risks UBS was taking on with the purchase. But by August, the bank said it would not need the billions in support offered by the Swiss government and central bank to offset any surprises that might pop up in its stricken rival's accounts. That must mean that Credit Suisse's situation was "much better than described in March", Thomas Aeschi, a member of parliament with the populist rightwing Swiss People's Party (SVP), wrote on X, formerly Twitter. UBS seemed to prove him right when it unveiled its second-quarter results on August 31. The bank posted a towering net profit of $29.2 billion for the three-month period, thanks to an exceptional gain due to the gulf between the amount paid for Credit Suisse and its book value. 'Godsend' "UBS has pulled off the deal of the century," Switzerland's Socialist Party said, maintaining the "rescue" was more of a "godsend", allowing it to snatch up a bank at a dramatically reduced rate. "If we had chosen another path, (like) a temporary or partial nationalization," said Samuel Bendahan, a Socialist MP and economics professor at the University of Lausanne, the Swiss state "would have taken on the risk, but those $29 billion would have gone to the population". Instead, the takeover has created "a monopolistic situation", he told AFP, warning that while this might strengthen UBS, it puts Switzerland in an extremely risky position if the new mega-bank were to one day face a crisis. Politicians are not the only ones taking issue with the takeover. Gisele Vlietstra, founder of the Swiss Investor Protection Association, told public broadcaster RTS that UBS's towering quarterly profit confirms that the "intrinsic value" of Credit Suisse was "far higher" than the purchase price. She said she hoped that the lawsuits brought by her association and others on behalf of thousands of Credit Suisse shareholders will help determine "the correct value" that they should be compensated. 'Nickel and dime' "UBS paid a nickel and dime" and "got rid of its main competitor" in one fell swoop, Carlo Lombardini, a lawyer and banking law professor at Lausanne University, told AFP. The coming restructuring will clearly carry risks, "but having paid just three billion, it can't go wrong", he said, slamming the option chosen by the Swiss authorities. Like UBS, Credit Suisse was listed among 30 international banks deemed too big to fail because of their importance in the global banking architecture. But the collapse of three US regional lenders in March left the firm looking like the next weakest link in the chain. The Swiss government feared Credit Suisse would have quickly defaulted and triggered a global crisis, shredding Switzerland's reputation for sound banking. But its chosen option for dealing with the issue was certainly a boon to UBS, which will now swell to manage $5 trillion of invested assets. Confidence 'evaporated' UBS chief Sergio Ermotti acknowledged in a recent interview with the SonntagsZeitung weekly that the bank had been "worried" about its competitor since 2016, and had among other things looked into the possibilities of buying it, for fear a foreign lender might snap it up. He acknowledged that Credit Suisse may have survived for a time if the central bank had injected more cash, "but it would not have been enough, since confidence had evaporated". Since the takeover announcement in March, UBS has seen its share price soar 31 percent. But the bank still faces significant challenges, Vontobel analyst Andreas Venditti told AFP. The $29 billion "is a huge one-off gain, but this is just accounting", he said, stressing that "the losses and costs will come later". The analyst, who a few months ago wondered in a note whether UBS had secured "the deal of the decade or a decade of headaches", stressed that "it's going to be a huge task". He said it would only become clear "whether it was worth it" after most of the restructuring is done three years down the line. Parts of the business are continuing to "produce huge losses", he said, warning "many things can still go wrong". Swissquote analyst Ipek Ozkardeskaya agreed, recalling that "UBS was forced" into the merger. Now it is up to the bank to "transform an 'obligation' to its advantage". The post UBS’s Credit Suisse takeover, ‘deal of the century’? appeared first on Daily Tribune......»»
Gov’t seeks Indon capital
Finance Secretary Benjamin Diokno presented to Indonesia’s business community the Philippine economic plans for securing investments in infrastructure, energy and technology. In a statement by the Department of Finance on Thursday, it said Diokno conducted the talk in Jakarta City on Wednesday ahead of the 10th ASEAN Finance Ministers and Central Bank Governors’ Meeting from 24 to 25 August. The listeners included members of the Indonesian Chamber of Commerce and Industry and the Philippine Business Club Indonesia, and officials of foreign embassies in Jakarta. Diokno said the Philippine lawmakers are now studying all measures for faster public-private partnerships or PPPs as the Marcos administration aims to build 197 infrastructure flagship projects, including railways, airports and water management, among others. PPP crucial “The PPP Act, which is currently pending in the Senate, consolidates all legal frameworks on PPP and creates a unified system for investors to refer to when engaging in PPP projects,” DoF said. To build more capital for Philippine infrastructure development and diversify investment channels, Diokno said government agencies are now crafting the rules and regulations of the Maharlika Investment Fund. “This is the Philippines’ first sovereign investment fund that will serve as a platform for investors to engage in direct equity investments in Philippine ventures,” he said. Diokno said both the legislative proposal and newly approved sovereign fund will support economic expansion from liberalized investment laws passed by the previous Duterte administration. Diokno shared amendments to the Public Service Act which now allows full foreign ownership from 40 percent previously of various businesses, such as airlines and telecommunications. Amid growing concerns with climate change, the finance chief said this applies also to renewable energy facilities, such as solar plants. Indonesia, along with China and India, is among the world’s largest exporter of coal, according to the International Energy Agency. However, Indonesia vowed to achieve net-zero carbon emissions by 2060, while it is 2050 for the Philippines. To ensure efficient management and profitability of infrastructure, Diokno said the government also eased processes for foreign investors under the Build-Operate-Transfer Law. “To help foster the development of high quality, modern, and sustainable infrastructure in the country, we wasted no time in building a fertile business and investment ecosystem for private players,” Diokno said. The post Gov’t seeks Indon capital appeared first on Daily Tribune......»»
Fed rate hikes still likely — economists
Economists expect higher returns from US dollar-denominated bonds as the improving job market overseas signals higher rate from the Federal Reserve this year. “It is very uncertain if the Federal Reserve is already done with its hiking cycle. Additional rate hikes are still possible given the tight labor market in the US and its impact on wages,” Jun Neri, chief economist of Bank of the Philippine Islands, said Thursday. Data from the US government showed an additional 187,000 jobs last month, indicating a livelier business environment and overall economic growth in the US. Recession fears linger The job data came after worries about the recession caused by high inflation and recent layoffs, especially in the technology industry. “Short-term bond yields may stay elevated as central banks continue to fight inflation,” Neri said. Michael Ricafort, chief economist of Rizal Commercial Banking Corp., told the Daily Tribune the growth in the US industrial sector driven by a 5.2 percent expansion in automobiles in July further supports the still elevated rates. “Stronger US industrial production data could support future Federal rate hikes. Most participants also continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” he said. With more job opportunities and income earners, Ricafort agreed with economists that the chances of the US going into a mild recession are now slim. The post Fed rate hikes still likely — economists appeared first on Daily Tribune......»»
Manhattan of Pasay City (3)
The iconic Manhattan of Pasay City along Manila Bay, world-class and impressive, well-planned and eco-friendly, is set to affirm the city’s reputation as the first “Eco-City” in the Philippines. To date, the project has reclaimed more than 117 hectares of submerged lands above water, a testament to the technical capabilities and synergy of the Pasay Harbor City Corporation and its EPC contractor, Netherlands-based Royal Boskalis Westminster N.V. — one of the world’s top dredging companies. The project is set to be completed a decade and a half from today, with its horizontal development, including roads, bridges, drainage water, power, sewerage, communications, and other primary utilities and facilities. Pasay Harbor City Corporation or PHCC, the joint venture partner of the City of Pasay for the 265-hectare Pasay Reclamation Project with a closed P57-billion syndicated loan agreement, with five of the country’s largest banking institutions. With the loan in place, PHCC has secured funding for the completion of the project, the future site of Metro Manila’s premier central business district by the bay. The project is part of the Pasay Eco City Grand Vision to build a sustainable, eco-friendly, and world-class metropolis consistent with its mission to promote the quality of life of its people. The signing was led by PHCC’s chairman Carlos S. Gonzalez, its president Manuel S. Gonzalez, and counsels, Atty. Roan Libarios of Libra Law and Atty. Santiago T. Gabionza Jr. of VGD Law. This investment is a much-needed boost to the economy still saddled by the effects of the Covid-19 pandemic by creating jobs and economic multipliers and positioning Pasay as the next leading business, investment, and tourism hub in the country. The loan agreement was made possible due to the approvals of the bank lenders following months of required due diligence, particularly, PNB Capital led by its president/ CEO Gerry B. Valenciano and PNB executive vice president Cenon C. Audencial Jr.; BDO Unibank led by executive vice president Jeannette S. Javellana; Metrobank led by First Vice President Christopher Hector L. Reyes and First Vice President Mercedes P. Uyboco; Landbank led by Senior Vice President Gonzalo Benjamin A. Bongolan; DBP led by President/ CEO Emmanuel G. Herbosa; and the Lenders’ Counsel, Marievic G. Ramos-Añonuevo of SyCip Salazar Hernandez and Gatmaitan. The solid, visible, and incontrovertible proof of the completion of the project is the stunning success of the Mall of Asia, as envisioned by its father, the late visionary and father of the global metropolis of Pasay, Mayor Duay Calixto. For indeed, one can just marvel at the great transformation of the reclaimed area, now the home of SM and Mall of Asia. Manhattan of Pasay City is following Mayor Duay’s vision which turned into reality when Pasay City, in 2015 alone, earned P3.2 billion in real property taxes, business and work permits. With the project in progress, the city could double or even triple its income in taxes alone. The integrity and quality of workmanship in the erection of the iconic project are assured by the technical capability of the EPC contractor Netherlands-based Royal Boskalis Westminster N.V., one of the world’s top dredging companies. The Netherlands is a country built partly on reclaimed land by dredging companies with the likeness of the firm hired by the planners of the iconic Manhattan Tower in Pasay City. The post Manhattan of Pasay City (3) appeared first on Daily Tribune......»»
Philippines ripe for open finance
Key figures in the domestic financial landscape have banded together to leverage open finance in driving financial inclusion across the country. Leading the partnership are UBX, the Bangko Sentral ng Pilipinas and members of the European Chamber of Commerce of the Philippines’ Special Committee on Open Finance and Financial Inclusion. In a recent Kapihan Session organized by the ECCP-SCOFFI, UBX managing director for Open Finance Jamie Garchitorena, and BSP Deputy Governor Chuchi Fonacier, highlighted the readiness of the Philippines to embrace open finance. According to Fonacier, the country already has the necessary tools to adapt to the Open Finance Framework. The central bank is already implementing this policy alongside critical players in the finance industry. “It is only a matter of providing the right information on why it is necessary and how this would benefit them (Filipinos). Very critical here is the consent of the customer to share his data or personal transactions with any of the financial institutions. There is an emphasis on consent. What benefit will they derive from sharing? Trust is key to all of this. It is critical,” Fonacier said. Earlier this year, the BSP called on various financial service providers in the country to participate in the pilot run of its open finance ecosystem within a sandbox and proof-of-concept framework under the administration’s goal of digitally transforming the economy. By reducing transaction costs through consent-driven data portability, interoperability, and collaborative partnerships among financial institutions and third-party providers , open finance seeks to provide customers with a better banking experience. Hence, industry players can create customer-centric products and provide better access to critical financial services such as savings, insurance and credit. UBX managing director for Open Finance Jamie Garchitorena said that from a regulatory and business perspective, the Philippines is more than ready for this development. However, it is also essential to consider the circumstances of the consumers. “Digital is how businesses like insurance leverage large masses of data to create new products and services cost-efficiently. It is also how you protect yourself and your customers from fraudulent transactions. We should look at readiness from different perspectives: the consumer may or may not be ready from an ultimate benefit perspective, and even an access perspective,” Garchitorena said. The post Philippines ripe for open finance appeared first on Daily Tribune......»»
Security Bank pays it forward
Education serves as a lasting legacy for many. Living proof is the story of Rhona Alma Bello, a customer advisor from Security Bank’s Santiago Branch, who witnessed Security Bank Foundation Inc.’s turnover of a school building to her and her daughter’s alma mater, Santiago South Central School. “Having our bank’s foundation donate classrooms to the public school where I graduated made me even prouder. It is an honor to be part of an institution that invests in the construction of much-needed classrooms for our public schools,” Bello said. With over 37 years of dedicated service to the bank, Santiago branch business manager Agnes Alcid looks at the 12 classrooms donated to Santiago as one of her most memorable legacies upon retirement. “I hope the community will always remember the bank and its endeavors for improving the quality of education,” Alcid said. Security Bank’s branch business managers coordinate with community stakeholders to help SBFI implement its classroom construction projects. Recently, SBFI turned over 12 classrooms to Santiago City, Isabela consisting of a two-story, four-classroom building for Santiago North Central School SPED Center and a two-story, eight-classroom building for Santiago South Central School, among the most populated public schools in the city. After turning over 675 classrooms and benefiting 120 schools across 69 cities and municipalities in the country, SBFI Chairman Rafael F. Simpao Jr. said he hopes “the legacy that Security Bank shall leave behind, through our Classrooms Project, is that we have been instrumental in the improvement of the learning conditions in the country’s public schools and in the academic performance of students nationwide.” Santiago City Mayor Atty. Alyssa Sheena Tan also believes that education is an important legacy to leave for the people of her city. “It is imperative to invest in our people, especially the youth, for their education so they can succeed in the 21st-century economy,” Mayor Tan said. “Security Bank Foundation has bestowed to the Department of Education an invaluable asset that will help shape the lives of generations to come,” added Dr. Flordeliza Gecobe, Department of Education Division of Santiago City Schools Division Superintendent. The post Security Bank pays it forward appeared first on Daily Tribune......»»
UAE to set up anti-money laundering bodies amid scrutiny
The UAE announced plans on Sunday to establish judicial bodies to prosecute money laundering and financial crime following increased monitoring by a global watchdog dedicated to battling illicit cash flows. The official WAM news agency reported that the United Arab Emirates has approved a "proposal to establish federal prosecution entities specialized in economic crimes and money laundering". It said the move "represents a first step towards investigating and cracking down on" shady financial transactions. The proposal calls for the "creation of prosecution offices specialized in" illicit finance. It comes more than a year after the Paris-based Financial Action Task Force added the UAE to a "grey list" of nations subject to greater oversight because of concerns over illicit finance. The FATF listing in March 2022 came as a blow to the UAE's reputation as a major financial and business hub. The watchdog has since upheld its decision, but a June report noted improved efforts in the UAE to tackle shortcomings. The step announced on Sunday aims to enhance "the confidence of international investors in the UAE's business environment" and encourage "them to bring their businesses to the UAE", WAM said. "The project's significance lies in its role in protecting the national economy and reducing the impact of economic and financial crimes," it added. The resources-rich UAE has become a nexus connecting the Middle East, Europe, Central Asia, and Asia. Dubai has the world's busiest airport in terms of international passenger traffic and is also one of the busiest seaports. While the desert country has successfully diversified its economy rather than relying on oil, experts and international organizations have long criticized a failure to crack down on suspicious financial transactions. Senior US officials visited earlier this year for talks with UAE authorities, including the central bank, on the evasion of sanctions imposed on Russia and Iran, as well as money laundering. The post UAE to set up anti-money laundering bodies amid scrutiny appeared first on Daily Tribune......»»
US first quarter GDP growth revised sharply up to 2%
US economic growth came in at two percent in the first quarter this year, the Commerce Department said Thursday, making a significant upward revision to earlier estimates partly on stronger-than-expected consumer spending. While GDP growth in the world's biggest economy has still cooled from 2.6 percent in the final three months of 2022, the latest first-quarter figure is markedly higher than the annual rate of 1.1 percent initially estimated. "The updated estimates primarily reflected upward revisions to exports and consumer spending," said the Commerce Department in its report. Analysts had expected a lower annual rate of 1.3 percent, according to Briefing.com. The Commerce Department added Thursday that the shift upwards was partly offset by downward revisions in other areas, such as non-residential fixed investment. Consumption has provided a boost to the US economy, giving it a strong start in 2023 even as banking sector turmoil and higher interest rates weighed on the outlook. This was in spite of 10 consecutive rate hikes by the US central bank over the past year or so -- to ease demand and rein in stubborn inflation -- before pausing at its most recent meeting. "The US economy is currently displaying genuine signs of resilience," said Gregory Daco, chief economist at EY-Parthenon in a note. "This is leading many to rightly question whether the long-forecast recession is truly inevitable," he added. Instead, another possibility is a "soft landing of the economy" where inflation falls to a two percent pace without a recession, he said. Risks remain But analysts flag risks on the horizon, with High-Frequency Economics chief US economist Rubeela Farooqi noting that the lagged effects of the Federal Reserve's rate hikes will slow the economy. There are also risks from "a further tightening in credit conditions, which will have an impact on business hiring and investment decisions," she said in a note. But a strong household sector supported by job growth could help the US economy avoid a contraction, Farooqi added. In a separate report released on Thursday, initial jobless claims slipped in the week ending June 24. Continued claims came down from a recent peak as well. Initial claims dropped by 26,000 to 239,000, according to Labor Department figures, a level lower than analysts had predicted. "The data are a reminder that labor markets are still quite tight," said Nancy Vanden Houten, lead US economist at Oxford Economics. This raises the risk that the Fed lifts interest rates again next month, she added. The post US first quarter GDP growth revised sharply up to 2% appeared first on Daily Tribune......»»
Remolona new BSP head
President Ferdinand Marcos Jr. has appointed Eli Remolona as the new Governor of the Bangko Sentral ng Pilipinas, Malacañang announced on Friday. The Palace made the announcement through the Presidential Communications Office as the six-year term of a BSP Governor, currently held by Governor Felipe Medalla, will end in July. Marcos made has made the decision to appoint a new Governor to succeed Governor Medalla after extensive consultations with the Department of Finance, various government offices, private banks, and financial institutions, PCO added. "As the newly appointed governor, Mr. Remolona is expected to leverage his extensive knowledge and experience to guide the BSP in promoting financial stability, implementing effective monetary policies, and fostering a robust banking sector," PCO said. "His appointment ushers in a new era for the central bank, with great anticipation and confidence in his ability to steer the Philippine economy toward sustained growth and stability," PCO added. Mr. Remolona's impressive career includes a notable tenure of 14 years at the Federal Reserve Bank of New York, followed by 19 years at the Bank for International Settlements. During his time at the BIS, he served as the regional head for Asia and the Pacific, where he closely collaborated with the governors of 12 leading central banks in the region. His work focused on crucial issues such as financial stability, capital market development, and asset management for Asia-Pacific central banks. A distinguished academic, Remolona also served as a Professor of Finance and Director of Central Banking at the Asia School of Business in Kuala Lumpur, in collaboration with the MIT Sloan School of Management from 2019 to 2022. He taught courses on monetary policy, money, and capital markets, and digital transformation, contributing to the education and development of future finance professionals. Remolona's expertise extends beyond academia, as he held various positions of high importance in the financial industry. Notably, he served as the Chief Representative for Asia and the Pacific at the BIS, where he led a team of 35 professionals, managed a significant budget, and oversaw policy-oriented research and financial services provided to central banks and governments in the region. Remolona has published over 5,500 citations in leading journals in economics and finance. His contributions to the field of finance are further highlighted by his role as an Associate Editor for Finance of the International Journal of Central Banking from 2005 to 2022. His journey in economics began in 1972 when he served as an economist at the Presidential Economic Staff and Development Management Staff, under Alejandro Melchor, then Executive Secretary of President Ferdinand E. Marcos. He also joined a high-level economic mission to the Philippines, advising President Ferdinand E. Marcos on structural reforms. Throughout his career, he has also worked as a consultant for esteemed institutions such as the Asian Development Bank, the International Monetary Fund, and the World Bank. Before his appointment as Governor of the BSP, Remolona served as a Member of the Monetary Board of the BSP since August 2022. The post Remolona new BSP head appeared first on Daily Tribune......»»
BOP posts $3.5-B surplus in Q1 2023
The country's balance of payments registered a surplus in the first quarter of 2023 due to higher net inflows from other investments and a reversal of portfolio investments, the Bangko Sentral ng Pilipinas said on Friday. Preliminary data from the central bank showed that the country’s BOP showed a surplus of $3.5 billion for the first quarter of 2023. This figure marks a significant increase compared to the $495 million surplus recorded in the same period of the previous year, BSP’s Monetary Policy Subsector officer in charge Redentor Paolo M. Alegre Jr. said in a briefing. "However, we saw a widening of the current account deficit during the period driven by the higher trade and goods deficit and those receipts in the primary income account,” Alegre said. Data from BSP showed that the current account for the first quarter as mentioned is a deficit of $4.3 billion, slightly larger from the $4 billion last year during the first quarter last year. The decline in exports, particularly coconut products and mineral products, played a significant role in the widening trading goods deficit. BSP said the imports of goods declined by 0.5 percent to $29.8 billion in the first quarter 2023 from $29.9 billion in the first quarter of 2022. The net receipts in trading services were recorded at $4.5 billion, 41 percent higher than the $3.2 billion recorded in the same quarter last year. "The recorded higher net proceeds were driven by the upsurge in receipts on travel services, technical, trade-related and other business services, and passenger transport services,” Alegre said. While the current account deficit widened, the financial account recorded net inflows. Net borrowing by residents from the rest of the world amounting to $5.7 billion in the first quarter of 2023 from that inflows of $4.7 billion in the same period last year. Meanwhile, BSP expects a lower BOP deficit this year due to a projected decrease in the current account shortfall. For 2024, the overall BOP position is projected to post a slightly lower deficit relative to the previous forecast. “This is hinged mainly on the foreseen normalization and return to pre-pandemic levels of global and domestic economic activity,” BSP explained. According to BSP, the International Monetary Fund projects global economic activity and trade to rise by 3.0 percent and 3.5 percent in 2024, respectively, both higher than their 2023 forecasted growth rates. The BSP assured that it continues to emphasize limitations to the forecasts, particularly given continued buildup of external challenges. “The BSP will continue to monitor closely emerging external sector developments and risks and how these may impact the BSP’s fulfillment of its price and financial stability objectives,” the Central Bank said. The post BOP posts $3.5-B surplus in Q1 2023 appeared first on Daily Tribune......»»
Economic managers court Singaporeans
The country’s economic managers on Thursday boasted of the government’s aggressive infrastructure development plan and strong consumer spending among Filipinos post-pandemic as they hope to attract more investments from Singaporean firms. In their second economic briefing in Singapore, Philippine economic managers updated the foreign business community on the 194 infrastructure projects approved by the National Economic and Development Authority in March. NEDA Secretary Arsenio Balisacan shared 93 of them are already being built, of which 19 are expected to be completed this year and 61 in the next five years. “These investments will ease the process of doing business, expand market opportunities and foster job creation and innovation,” Balisacan said. The infrastructure program totaling around P8.3 trillion includes transportation, energy, water, agriculture and digitalization projects, among others. Committed to increase infrastructure spending Under the current administration of President Ferdinand Marcos Jr., Balisacan said the government has committed to increase infrastructure spending ranging from 5 percent to 6 percent of the gross domestic product or at least $20 billion to $40 billion each year. “In the previous administrations, we didn’t have ready-to-implement infrastructure projects. We had to develop them ourselves. Now there are such, with feasibility studies and some detailed engineering, so you can come in and invest,” Finance Secretary Benjamin Diokno added. Through public-private partnerships or PPPs in the infrastructure industry, Balisacan said the government can improve other basic services to the people. “We’re pushing for PPPs to support certain programs and have the rest of the funds support other basic programs such as social protection, health and education.” To boost funds for infrastructure spending, Diokno said the government has proposed the Maharlika Investment Fund, a sovereign wealth fund which could have sub-funds for specific industries, such as those contributing to fight climate change. Economy expanded the most in Asia Meanwhile, Bangko Sentral ng Pilipinas deputy governor Francisco Dakila Jr. said the Philippine economy expanded the most in Asia at 6.4 percent in the first quarter this year, higher than Malaysia’s 4.9 percent, India’s 4.6 percent and Thailand’s 2.8, due to strong consumption of goods and services. Dakila reported sales from hotels and restaurants jumped by 23.8 percent and 30.1 percent from automobile shops. He added domestic consumption was also partly driven by the continued flow of remittances from overseas Filipino workers which increased by 3 percent in the first quarter despite global inflation. While the banking sector has seen moderate growth, Dakila said financial firms remain stable and optimistic for more clients as more Filipinos have been able to find jobs, with the unemployment rate falling to 4.5 percent in April from 5.7 percent in the same month last year. “We see that the banking sector is pretty much stable. The central bank did an outlook survey for the non-performing loans ratio showing it rising to 8 percent during the pandemic and that didn’t happen. Now it’s 3.5 percent, so banks are well capitalized. Investments in the financial sector should be very attractive.” Middle-income society Balisacan said the government aims to achieve economic growth of at least 6.5 percent each year and make the country a predominantly middle-income society by 2040. To achieve this goal, Balisacan said the government will be expanding trade agreements with other countries, including members of the Association of Southeast Asian Nations (ASEAN). “His marching order to us is to expand the opportunities in trade with other countries. The Philippines has the lowest number of bilateral agreements in ASEAN. The country has improved employment but the quality of employment is below par.” The post Economic managers court Singaporeans appeared first on Daily Tribune......»»
BSP not seen following Fed
Bangko Sentral ng Pilipinas or BSP is unlikely to follow the US Federal Reserve’s lead and pause rate hikes if inflation remains high, BSP Deputy Governor Francisco Dakila Jr. said on Thursday. Dakila said this during the Marcos Jr. administration’s economic briefing to Singapore’s business community as inflation has softened after soaring to 14-year highs towards the end of 2022. BSP raised the policy rate by 425 basis points to 6.25 percent to help slow the pace of inflation, which fell to 6.6 percent in April 2023. Not in lockstep “Even if the Fed decides to pause from its policy tightening, which it did this morning, we may not move in complete lockstep if the domestic inflation picture warrants a different response,” Dakila said. Dakila mentioned that the minutes from the policy meeting held in May suggested that the BSP had adopted a more cautious approach. Putting aside the cautious stance, the central bank’s inflation forecast indicates that inflation is expected to return to its target range of 2 to 4 percent by the last quarter of 2023. BSP Governor Felipe Medalla has mentioned that inflation could drop below 4 percent by October or December, aided by a slowdown in the rate of increase due to the influence of base effects. In 2022, the BSP made efforts to control inflation and manage investor expectations by aligning its actions with those of the US Federal Reserve. In July, the central bank called for an emergency policy meeting and raised interest rates by 50 basis points to prevent inflation from rising too rapidly. Jun Neri, the lead economist at the Bank of the Philippine Islands, said the BSP hike could still pull a walk if inflation turns sideways. “While many are hoping BSP is done hiking, we really can’t rule out additional rate hikes should domestic inflation bounce back or if the Federal Reserve hikes some more later this year,” he said in a Viber message. Domini Velasquez, the chief economist at China Banking Corp., noted that the need to minimize the gap between interest rates in the Philippines and the United States would strongly influence policy choices. “Given the Fed’s recent guidance of possibly 2 more quarter-point hikes, we think the BSP may be forced to hike at least one more time just to maintain sufficient interest rate differentials,” she said in a Viber message. “Instead, they will likely hike to prevent capital flight and unwarranted depreciation of the peso. We saw this happen last year when the peso depreciated to 59.00 per (US Dollar),” Velasquez added. The post BSP not seen following Fed appeared first on Daily Tribune......»»
UBS completes Credit Suisse takeover
UBS finalized the takeover of its former rival Credit Suisse on Monday, clearing the way for the Herculean task of integrating two of the world's most important banks. UBS, Switzerland's leading bank, was forced into the marriage on March 19 to prevent its closest domestic rival from going under -- which potentially could have had catastrophic consequences for the global financial system. "UBS has completed the acquisition of Credit Suisse today, crossing an important milestone," the bank announced. "Credit Suisse Group AG has been merged into UBS Group AG and the combined entity will operate as a consolidated banking group." UBS chairman Colm Kelleher said he was pleased to have closed the transaction in under three months, "bringing together two global systemically important banks for the first time. "We are now one Swiss global firm and, together, we are stronger," he said. The technically- and politically-complex merger has created a megabank bigger than anything Switzerland has seen before -- and its size has some politicians worried, fearing it could not be rescued if it too got into trouble. No other option "We consider the merger to be a massive task with substantial executions risks," said ING senior sector strategist Suvi Platerink Kosonen. For Thomas Jordan, chairman of Switzerland's central bank, there was no other solution. "Of course, it's a pity there is only one (big bank) left. But I am sure that if the takeover by UBS hadn't succeeded, there would have been an international financial crisis," the Swiss National Bank chief told the SonntagsZeitung weekly newspaper. UBS chief executive Sergio Ermotti said Monday that "instead of competing, we'll now unite as we embark on the next chapter of our joint journey. Together, we'll present our clients an enhanced global offering, broader geographic reach, and access to even greater expertise." But he warned Friday that the coming months are likely to be "bumpy", saying the operation would require "waves" of difficult decisions, particularly regarding employment. At the end of 2022, the two giants had around 120,000 employees worldwide, including 37,000 in Switzerland. Ermotti told public broadcaster SRF that around 10 percent of the Credit Suisse workforce had left in recent months. "It helps in part to mitigate the social costs a bit, which we're pleased about," he said while adding that it showed there was competition in the sector, and "people who are willing to hire employees". Just the beginning For the time being, the two banks will continue to operate separately under the UBS umbrella. But UBS has already created a new board of directors for certain Credit Suisse operations, headed by current UBS vice-chairman Lukas Gaehwiler. Credit Suisse risked collapse when its share price plunged more than 30 percent during trading on March 15, after three US regional lenders folded. A series of scandals had undermined confidence in the 167-year-old bank. The Swiss government, the central bank, and the financial regulators FINMA stepped in and strongarmed UBS into a quickfire $3.25 billion takeover announced on March 19. The deal includes guarantees for UBS in case there are any nasty surprises in the Credit Suisse cupboards, and liquidity to facilitate the takeover. In an internal memo to staff, seen by AFP, UBS executives welcomed Credit Suisse workers, calling for "patience" from all employees while concrete details are worked out. "The most crucial phase is just beginning," Kelleher and Ermotti said. Clarity and stability According to the Financial Times newspaper, UBS will impose red lines on Credit Suisse staff on the type of business they can do while waiting for the integration to be completed. And UBS executives have been careful to highlight their conservative approach to risk, saying the integration cannot be compromised. The outline of UBS's plans should become clearer when it publishes its second-quarter financial results. The bank has pushed the publication date back by more than a month to August 31. FINMA said the merger completion "marks the end of a phase of great uncertainty" and "creates clarity and stability". "FINMA welcomes UBS's strategic focus, which foresees a rapid reduction of risk in investment banking," it said in a statement, referring to the most troubled part of Credit Suisse's operations. UBS expects its CET1 capital ratio, which compares a bank's capital to its risk-weighted assets, to be around 14 percent in the second quarter of 2023. Monday marks the last trading day for Credit Suisse shares on the Swiss stock exchange. Shareholders will receive one UBS share for every 22.48 Credit Suisse shares. The post UBS completes Credit Suisse takeover appeared first on Daily Tribune......»»
Aboitiz joins global beat plastic efforts
On 5 June, the United Nations’ or UN World Environment Day, the Aboitiz Group demonstrates its commitment to global sustainability efforts by highlighting its groundbreaking innovations in the fight against plastic pollution. With this year’s theme of #BeatPlasticPollution, the Aboitiz Group supports effective action and a transition towards a circular economy to address global environmental challenges. The Group hews close to the UN Environment Program or UNEP’s vision of a shift to a circular economy, in which the inflow of plastics into the ocean can decrease by more than 80 percent by 2040, greenhouse gas emissions are reduced by 25 percent, and in the process even generate 700,000 job opportunities. The Group aims to accelerate progress and inspire others to take bold steps in combating plastic pollution. At the heart of the Aboitiz Group’s operations lies the OneNewAboitiz Sustainability Synergy, guiding the Group toward innovative practices and technologies. The Aboitiz Group’s sustainability achievements work towards a worldwide sustainable development agenda, aligning with the UN Sustainable Development Goals or SDGs. By pushing the boundaries of innovation, the Aboitiz Group tackles pollution challenges with effective solutions. Through these dedicated initiatives and actions, the Aboitiz Group demonstrates its unwavering commitment to sustainable development and actively contributes to the attainment of several SDGs. These include SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 14 (Life Below Water), and SDG 15 (Life on Land). The Group’s efforts specifically focus on promoting responsible consumption and production, taking action against climate change, safeguarding marine ecosystems, and preserving terrestrial biodiversity. Reimagine seaweed As the Group undergoes its Great Transformation to become the Philippines’ first Techglomerate, it is taking an innovative approach to #BeatPlasticPollution, reimagining the world in terms of possibilities and opportunities. With growing interest in using seaweed as an alternative to single-use plastic, leaders within the Aboitiz Group are working on the Reimagine Seaweed initiative, set to transform the seaweed industry of the Philippines. The initiative is holistically designed to create a sustainable and profitable seaweed industry that provides livelihoods to farmers, promotes biodiversity, reduces plastic pollution, and mitigates the effects of climate change. According to the Food and Agricultural Organization, the Philippines is the fourth-largest producer of seaweed globally, supporting 1.4 million seaweed farmers. Under Reimagine Seaweed’s three-pronged strategy, seaweed farmers are taught better farming techniques and are introduced to green technology that will expand their product range to potentially include bioplastics, protein powder, cosmetics, and health supplements. Within the next five years, the Aboitiz Group and the Reimagine Seaweed team are looking to reduce single-use plastics in the region through the production of biodegradable and compostable packaging made from seaweed. This game-changing initiative is making progress towards improving the lives of seaweed farmers, bringing world-class green technology to the local industry, and eliminating single-use plastics in Asia and beyond. By leveraging a renewed entrepreneurial mindset and the latest technologies, the Aboitiz Group tackles global challenges with innovative approaches that advance the business and communities they serve. On the road to ending plastic toxicity, they are also opening up an ocean of opportunity with Reimagine Seaweed. Plastic Neutrality Republic Cement, a CRH-Aboitiz company, pioneered the use of alternative fuels through co-processing in the Philippines. The process involves the reuse and recovery of thermal and mineral properties of qualified waste materials as alternative fuels, allowing Republic Cement to reduce dependence on fossil fuels and minimize environmental impact. The firm uses residual plastic waste, including rejected plastic bottles, styrofoam, tarps, single-use plastic containers and utensils, sachets, shopping packages, and other soft plastics, as alternative fuels. In August 2022, Republic Cement achieved a significant milestone in becoming plastic-neutral. Through its resource recovery group, ecoloop, the company collected and co-processed an equivalent volume of residual plastic waste used in the packaging and transporting of its cement products. By integrating plastic waste into the cement manufacturing process, Republic Cement successfully offset its plastic packaging footprint for 2020 to 2022, equivalent to co-processing over 890 dump trucks filled with plastic waste. Republic Cement also supports numerous manufacturers to reach their plastic neutrality goals and be more responsible corporate citizens and stewards of the environment. Upcycled plastic City Savings Bank, the thrift bank subsidiary of the Aboitiz-led Union Bank of the Philippines or UnionBank, partnered with Envirotech Waste Recycling, Inc. or Envirotech to upcycle plastic waste into classroom essentials: school chairs. In support of the Department of Education Matatag agenda to supplement basic education facilities and services, CitySavings donated 50 plastic chairs made of upcycled waste plastic to Kapitan Tomas Monteverde Sr. Central Elementary School in Davao City and Tunasan National High School in Muntinlupa City. Likewise, the construction arm of the Group, Aboitiz Construction, has been implementing its policy against single-use plastics across all projects and facilities since last year. The implementation resulted in a 14.60% reduction of plastic wastes from 2022 to 2023. Also, this initiative is anchored in the firm’s compliance to ISO 14001: 2015 (Environmental Management System) and to its future plan of standardizing materials recovery facilities on all sites. The post Aboitiz joins global beat plastic efforts appeared first on Daily Tribune......»»
Aboitiz Group joins global efforts to 'BeatPlasticPollution
On June 5, the United Nations’ (UN) World Environment Day, the Aboitiz Group proudly demonstrates its commitment to global sustainability efforts by highlighting its groundbreaking innovations in the fight against plastic pollution. With this year’s theme of #BeatPlasticPollution, the Aboitiz Group supports effective action and a transition towards a circular economy to address global environmental challenges. According to the UN Environment Programme (UNEP), by shifting to a circular economy, the inflow of plastics into the ocean can decrease by more than 80 percent by 2040, reduce greenhouse gas emissions by 25 percent, and even generate 700,000 job opportunities. The Group aims to accelerate progress and inspire others to take bold steps in combating plastic pollution. At the heart of the Aboitiz Group’s operations lies the OneNewAboitiz Sustainability Synergy, guiding the Group toward innovative practices and technologies. The Aboitiz Group's sustainability achievements work towards the worldwide sustainable development agenda, aligning with the UN Sustainable Development Goals (SDGs). By pushing the boundaries of innovation, the Aboitiz Group tackles pollution challenges with effective solutions. Through these dedicated initiatives and actions, the Aboitiz Group demonstrates its unwavering commitment to sustainable development and actively contributes to the attainment of several SDGs. These include SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 14 (Life Below Water), and SDG 15 (Life on Land). The Group's efforts specifically focus on promoting responsible consumption and production, taking action against climate change, safeguarding marine ecosystems, and preserving terrestrial biodiversity. Reimagine Seaweed As the Group undergoes its Great Transformation to become the Philippines’ first Techglomerate, it is taking an innovative approach to #BeatPlasticPollution, reimagining the world in terms of possibilities and opportunities. With the growing interest in using seaweed as an alternative to single-use plastic, leaders within the Aboitiz Group are working on the Reimagine Seaweed initiative, set to transform the seaweed industry of the Philippines. The initiative is holistically designed to create a sustainable and profitable seaweed industry that provides livelihoods to farmers, promotes biodiversity, reduces plastic pollution, and mitigates the effects of climate change. According to the Food and Agricultural Organization (FAO), the Philippines is the fourth-largest producer of seaweed globally, supporting 1.4 million seaweed farmers. Under Reimagine Seaweed’s three-pronged strategy, seaweed farmers are taught better farming techniques and are introduced to green technology that will expand their product range to potentially include bioplastics, protein powder, cosmetics, and health supplements. Within the next five years, the Aboitiz Group and the Reimagine Seaweed team aim to reduce single-use plastics in the region through the production of biodegradable and compostable packaging made from seaweed. This game-changing initiative is making progress towards improving the lives of seaweed farmers, bringing world-class green technology to the local industry, and eliminating single-use plastics in Asia and beyond. By leveraging a renewed entrepreneurial mindset and the latest technologies, the Aboitiz Group tackles global challenges with innovative approaches that advance the business and communities they serve. On the road to ending plastic toxicity, they are also opening up an ocean of opportunity with Reimagine Seaweed. Plastic Neutrality Republic Cement, a CRH-Aboitiz company, pioneered the use of alternative fuels through co-processing in the Philippines. The process involves the reuse and recovery of thermal and mineral properties of qualified waste materials as alternative fuels, allowing Republic Cement to reduce dependence on fossil fuels and minimize environmental impact. The firm uses residual plastic waste, including rejected plastic bottles, styrofoam, tarps, single-use plastic containers and utensils, sachets, shopping packages, and other soft plastics, as alternative fuels. In August 2022, Republic Cement achieved a significant milestone in becoming plastic-neutral. Through its resource recovery group, ecoloop, the company collected and co-processed an equivalent volume of residual plastic waste used in the packaging and transporting of its cement products. By integrating plastic waste into the cement manufacturing process, Republic Cement successfully offset its plastic packaging footprint for 2020 to 2022, equivalent to co-processing over 890 dump trucks filled with plastic waste. Republic Cement also supports numerous manufacturers to reach their plastic neutrality goals and be more responsible corporate citizens and stewards of the environment. Upcycled Plastic City Savings Bank (CitySavings), the thrift bank subsidiary of the Aboitiz-led Union Bank of the Philippines (UnionBank), partnered with Envirotech Waste Recycling, Inc. (Envirotech) to upcycle plastic waste into classroom essentials: school chairs. In support of the Department of Education (DepEd) Matatag agenda to supplement basic education facilities and services, CitySavings donated 50 plastic chairs made of upcycled waste plastic to Kapitan Tomas Monteverde Sr. Central Elementary School in Davao City and Tunasan National High School in Muntinlupa City. Furthermore, the construction arm of the Group, Aboitiz Construction, has been implementing its policy against single-use plastics across all projects and facilities since last year. The implementation resulted in a 14.60% reduction in plastic waste from 2022 to 2023. This initiative is anchored to the firm’s commitment and compliance with ISO 14001: 2015 (Environmental Management System). This year, as part of its continual improvement plan, Aboitiz Construction will be improving its standard MRF (Materials Recovery Facility) across its project sites to improve waste segregation and disposal. The post Aboitiz Group joins global efforts to #BeatPlasticPollution appeared first on Daily Tribune......»»
US hiring heats up unexpectedly in May but wage gains ease
Hiring in the United States heated up again in May, according to government data released Friday, with the strong labor market defying expectations of a slowdown amid efforts to cool the economy. The jobs market has been surprisingly robust even as regulators have worked to ease demand and tamp down inflation, with the central bank lifting interest rates 10 times since early last year. While the expectation is that higher rates would slow the economy, with elevated borrowing costs making it pricier to borrow funds for major purchases or business expansion, the latest numbers could prove challenging for policymakers mulling a pause in rate hikes. The United States added 339,000 jobs last month, surpassing estimates and picking up from a revised 294,000 figure in April, said the Labor Department on Friday. The jobless rate ticked up to 3.7 percent, rising from a historically low level of 3.4 percent. But in a more welcome sign, wage gains moderated slightly with average hourly earnings up by 0.3 percent, slightly down from 0.4 percent in April, the report said. "The data show that job growth is continuing at a rapid pace, but wage pressures are not building," said Rubeela Farooqi, chief US economist at High Frequency Economics. Compared with a year ago, average hourly earnings were up 4.3 percent, said the Labor Department. Room for pause Sectors that saw job gains included professional and business services, health care, and construction, said the Labor Department. But although the employment numbers were well above what analysts expected, Farooqi believes the wage data could still give the Federal Reserve room to hold policy steady. Fed policymakers are set to convene in mid-June, and some senior Fed officials have indicated this week that they might support skipping a further hike at their upcoming meeting. A key factor is that officials are eyeing the lagged effects of existing rate hikes as they ripple through the economy while deciding if more action is needed. A particular area of concern is that strong demand for workers and continued wage growth could feed into inflation. But if wage gains are not rising, this could ease pressure on policymakers. "Several Federal Reserve officials have signaled that they are likely to hold rates steady at their upcoming June meeting but are unlikely to reduce rates anytime soon. This somewhat mixed jobs report is likely to support that approach," said Mike Fratantoni, chief economist of the Mortgage Bankers Association. The post US hiring heats up unexpectedly in May but wage gains ease appeared first on Daily Tribune......»»