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Chip maker Intel beats earnings expectations as it pursues rivals
US chip giant Intel on Thursday said it made more money than expected in the recently ended quarter as it continued to invest in a "geographically balanced" supply chain. Intel shares jumped more than 7 percent to $34.88 in after-market trades. "We delivered a standout third quarter, underscored by across-the-board progress on our process and product roadmaps; agreements with new foundry customers, and momentum as we bring AI everywhere," said Intel chief executive Pat Gelsinger. Intel reported revenue of $14.2 billion, which was 8 percent less than the amount seen in the same quarter a year earlier but ahead of forecasts. Net income tallied $300 million, compared with $1 billion profit in the same period in 2022, earnings figures showed. "Our results exceeded expectations," said Intel chief financial officer David Zinsner, who said earnings benefited from "expense discipline." Intel has been working to catch up with rivals, especially Nvidia, when it comes to powerful chips needed to handle the computing demands of artificial intelligence. Intel touted investments being made in chip production facilities with an aim of creating a "geographically balanced, secure, resilient supply chain." California-based Intel is seen as a key tool for the United States to reduce its dependence on major global producers, such as Taiwan's TSMC. Earlier this year, Intel announced it would spend $25 billion on a new plant in Israel, with Prime Minister Benjamin Netanyahu calling it the country's single largest foreign investment. The "agreement in principle" would see the semiconductor firm build the facility in the southern city of Kiryat Gat that would open by 2027 and operate at least until 2035, Israel's finance ministry said. Intel has been operating in Israel since the 1970s with development centers and a production site that employs some 12,000 people, the finance ministry said. In 2017, Intel acquired Israel-based Mobileye, which makes technology for automated driving systems in vehicles, for just over $15 billion. Gelsinger said Intel teams have kept operations going despite the war between Israel and Hamas. "Our utmost priority is the safety and welfare of our people in Israel and their families," Gelsinger said. "Despite all of these challenges, they're performing extremely well. I am praying for a swift return to peace." China Gelsinger said Intel was carefully studying updated rules in the United States that tighten curbs on exports of state-of-the-art AI chips to China. "We do believe that we'll have plenty of opportunity in China," Gelsinger said. "We are continuing to deploy our products there broadly, even as we comply and work with (the United States) around the regulations that they're putting in place." The new rules tighten measures from a year ago that banned the sale to China of microchips crucial to manufacturing powerful AI systems. Calls to further close the supply chain grew after the popularity of generative AI platform ChatGPT. When announcing the beefed-up curbs, US Commerce Secretary Gina Raimondo insisted they were intended to close loopholes and prevent China's development of AI for military use. "It's true that AI has the potential for huge societal benefit. But it also can do tremendous and profound harm if it's in the wrong hands and in the wrong militaries," she told US media. The rules will not affect chips used in consumer goods such as laptops, smartphones, and gaming consoles, though some will be subject to export licensing requirements. China has said it is "strongly dissatisfied" and "firmly opposes" the curbs. "The US continues to generalize the concept of national security, abuse export control measures, and implement unilateral bullying," the commerce ministry said in a statement. The post Chip maker Intel beats earnings expectations as it pursues rivals appeared first on Daily Tribune......»»
Luxembourg, EU’s richest country, grapples with housing crisis
Luxembourg's residents may be classified as the wealthiest in the European Union, but the sky-high cost of buying or renting a home in the country has made living there nearly impossible for some. The crisis has become the number one concern in the Grand Duchy of 660,000 people -- smaller than Rhode Island, the smallest US state -- as it goes to the polls on Sunday. Pascale Zaourou, a teacher and mother of three children, had to wait five years before being able to access coveted social housing. "On the private market, renting an apartment with two rooms costs at least 2,000 euros -- it's difficult with only one income," she told AFP at a recent demonstration in Luxembourg City. "Affordable housing is scarce, especially for young people and single-parent families," she said. Antoine Paccoud, a researcher at the Housing Observatory, which compiles data guiding government policy, backed up that sentiment. "More and more Luxembourgers are crossing the border to live in Germany, Belgium, or France just because rents and property prices are lower," he said. The situation is jarring for a country with a flourishing economy based around financial services. Net average earnings for a single worker in Luxembourg were 47,000 euros ($49,000) annually in 2022, according to estimates from the EU's statistics agency -- the highest in the bloc. 'Overshadows all others' In the capital city, new-build flats sell for 13,000 euros per square meter (around $1,300 per square foot) and older ones go for 10,700 euros. The average cost of a house is 1.5 million euros. Rents increased by 6.7 percent between June 2022 and June 2023, much faster than the inflation rate of 3.4 percent over that period. Philippe Poirier, a political analyst at the University of Luxembourg, told AFP that housing has become "the question that overshadows all others" at the legislative elections. He ticked off "the scarcity of housing and land, the cost of construction or purchase, and the high rents" as the key problems. The two major political parties hoping to spearhead the next government have pledged action. Prime Minister Xavier Bettel's Liberal Party promised to create a super-ministry for housing, wants to tax vacant properties more and invest in social housing. Socialist leader Paulette Lenert -- the health minister in the current coalition government -- is pushing for huge investments in affordable housing. 'Holding on to land' But the structural problems with housing run deep and changing them will not be easy. Paccoud said a lack of inheritance tax and only symbolic duties have encouraged owners to sit on land without developing it. "0.5 percent of the resident population, or 3,000 people, own half of the buildable land," he said. "These owners are holding on to their land as long as possible because prices are increasing." The economic opportunities on offer also bring in droves of foreign workers, which helps drive up the cost of the limited housing pool. Around half the people living in Luxembourg are not citizens of the country. There is a wide gulf in terms of homeownership rates between native Luxembourgers, at 80 percent, and foreign residents at just 50 percent. While many Luxembourgers have nearly guaranteed jobs working for state institutions, foreigners have to deal with the changeable job market. "Those who are at the bottom of the scale in Luxembourg are rather the resident foreigners," Poirier said. As a result, and despite the high salaries and an official minimum wage of 2,571 euros a month, Luxembourg ranks in the top three in the eurozone in terms of risk of poverty for single-parent families with one income, according to a recent report by the Chamber of Employees. The post Luxembourg, EU’s richest country, grapples with housing crisis appeared first on Daily Tribune......»»
Big fuss over .02%
The Philippine Stock Exchange index is considered the gauge of the activity in the equities market and, by extension, of the economy since the direction of the line graph indicates the country’s financial health. The index tracks the price movements of a basket of select companies listed on the bourse, representing various sectors of the economy. Investors and market participants use the PSE index as a reference to evaluate the performance of their investment portfolios and make informed investment decisions. The daily movement of the index influences investor confidence and sentiment. Increased investor confidence can stimulate trading activity, attract foreign investments, and encourage local companies to raise capital through initial public offerings or secondary floats. A strong and stable PSE Index can enhance the stock market’s perception as an attractive investment destination. This could attract foreign capital inflows, increase liquidity, and contribute to developing the local capital market. Thus, the impending exit of Metro Pacific Investments Corp., or MPIC, and Aboitiz Power Corp., or APC, from the Philippine Stock Exchange index seems a bit off as both companies are major players in the country’s growth story. Replacing APC and MPIC in the exclusive blue chips club are tycoon Enrique Razon Jr.’s Bloomberry Resorts and the Po family’s Century Pacific Food. The revamp takes effect on Tuesday, 26 September. MPIC is stepping out of the index after its public float dropped to 2.78 percent as part of its program to delist by October. APC’s exclusion from the benchmark was decided on, however, after it missed by a few decimal points of the 20 percent float rule for stocks to be retained in the PSEi. The company purchased 11.4 million shares as part of its buyback program that brought the public float level to below 20 percent, the level required to stay in the PSEi. Based on APC’s report to the market, stocks owned by the public are 19.98 percent of the total listed shares of 7.35 billion. Listed companies are required to have a 10-percent public float, but the elite index members are given a more arduous 20-percent public ownership condition. APC is off by .02 percent. APC’s buyback activities increased non-public scrips to 5.886 billion, bringing the total number of publicly owned shares to 1.47 billion. “Aboitiz Power’s current public ownership levels far exceed the 10-percent minimum public ownership level required for it to remain listed in the Philippine Stock Exchange,” an APC statement to the PSE said. “Even with this stock buyback program, there is no intention to delist from the PSE, but merely to reward our existing shareholders with a larger share of a brighter future,” APC added. The PSEi must accurately reflect the stock market’s overall performance and, in the bigger picture, the economy’s strength. Its composition should go beyond the mere technical criteria to allow a more representative indicator of the daily activity of the market. APC accounts for one out of every five megawatts, or MW, of installed capacity in the country and has some 1,000 MW of renewable energy capacity in the pipeline. In the first half of the year, the company reported a P17.8-billion net income, 79 percent higher than the P10 billion recorded in the same period a year ago. In the second quarter, the company’s net income reached P10.3 billion, 46 percent higher than the P7 billion profit a year ago. The decision to remove a key bourse participant, which also has among the most active shares, is like benching your star player because he forgot to bring a matching pair of socks. The post Big fuss over .02% appeared first on Daily Tribune......»»
On right track
"Culture and the arts reflect our identity as Filipinos, as people. We must have a strong patriotism to embrace our culture and identity fully.” It may be a long and arduous road toward a free and genuine Filipino culture, National Commission for Culture and the Arts Executive Director Oscar G. Casaysay says, “In taking a whole of government approach, we are on the right track in attaining Philippine Development Goals.” Casaysay, who managed the community relations and major festivals and celebrations of the country’s largest city for nine years (from 2004 to 2013), now leads NCCA in preserving, developing, and promoting the Philippine arts and culture. Founded in 1987, NCCA “promotes unity among individuals involved in the conservation of cultural properties, such as artworks, ethnographic collections, archaeological artifacts, and other materials of historical significance.” He admitted that before joining the agency, he only read the works of national artists like Bienvenido Lumbera, Nick Joaquin, and Ricky Lee. He watched the films of esteemed Lino Brocka, Ishmael Bernal and Marilou Abaya. “I only heard and read about the productions of the Cultural Center of the Philippines featuring the Ballet Philippines and the Philippine Harmonic Orchestra,” he said. “It was only when I became the executive director that I was able to watch those productions inside the CCP in the front row and even stand on stage giving out messages.” “I now meet our national artists up close and personal. I have the luxury of being introduced to many theater greats in the Philippine Education Theater Association and other theater productions,” he added. He went on to say that he also had the pleasure of meeting Alice Reyes (whom he described as “graceful and very down to earth”), Ryan Cayabyab (“cool and very accommodating”), Virgilio Almario (“so dignified”), Ramon Santos (“unassuming”), Ricky Lee (“down to earth and very accommodating”), Nora Aunor (“warm and humble”) and Agnes Locsin (“friendly and very warm”). In the absence of regional offices to connect with local artists and cultural workers, he said NCCA works with sub-commissions whose members are elected from among the private sector members from different communities. “Ours is a complex network that we have to deal with,” Casaysay said. “A lot of challenges each day. The most difficult part is we don’t have a huge budget, although the grants we give out come from the National Endowment Fund for Culture and the Arts.” These grants, he said, are derived from the proposals coming from civil society organizations, individual artists and cultural workers, other national government agencies, schools, colleges, universities, and local government units for their culture and arts programs and projects. Through the Sentro Rizal Office, the NCCA also engages in international initiatives. Every day has a lot of challenges and struggles to confront and hurdle, but still, with the most gracious style, he jested. The NCCA oversees the entire recognition process, from the call for submissions and selection to the presentation of the Gawad sa Manlilikha ng Bayan, the Order of National Artists and the National Heritage Awards. Culture is a nation’s soul “Culture is the soul of the nation. Without culture, a nation doesn’t have an identity. Culture refers to the way of life of a nation. Thus, everything that we do as a people becomes our culture,” he said. “Culture is best manifested through the arts that are said to be the best expressions of culture.” “All seven types of arts contribute to the overall growth and advancement not just of a person but of the community and the nation as well,” he said, referring to architecture and allied arts, cinema or film, dance, drama or theater, literary arts, music and visual arts. Throughout the pandemic, he felt disheartened by the perception of the arts sector as being “non-essential.” “We cannot imagine the online platform without some of the best online programs communicated through the arts — films, dances, poetry, music, or even Netflix,” he said. Citing the NCCA’s role in supporting and promoting the interests of indigenous people groups, Casaysay said valuing and preserving the cultural heritage of IPs contributes to the diversity and richness of Philippine culture. Through its programs, projects, and collaborations, the NCCA empowers IPs to protect, revitalize, and celebrate their unique cultural traditions, languages, and arts, ensuring their continued existence and appreciation for future generations. “Other aspects, such as indigenous cultures and cultural heritage, also contribute to a nation’s progress and development,” he said. Indigenous cultures, he said, refer to the knowledge, skills, and practices of our culture bearers that are preserved and handed down from one generation to another. “Cultural heritage may be tangible or intangible and is considered the wealth of a nation in terms of its glorious past. All these facets of culture are important in the life of a nation and are essential towards the holistic advancement of a country,” he said. Opportunities The lack of widespread discussion and engagement among Filipinos regarding culture is a primary concern Casaysay and many others share. “There are many challenges faced by the NCCA in this aspect. To enumerate a few — due to the lack of interest generally by Filipinos in arts and culture. For many, culture and the arts are seen as not essential; for many, it is only for the elite,” he said. He lamented the current trend wherein the younger generation shows greater appreciation for foreign cultures, such as those from Korea or the United States, rather than their own. Instead of viewing these as obstacles, he said the NCCA sees them as opportunities for growth and enhancement. Expressing confidence in the significant achievements of the NCCA in fostering greater appreciation, understanding, respect, and love for arts and culture among Filipinos, he said these encompass various aspects, including policy formulation, programming and promotions. Several laws have been enacted to safeguard the country’s cultural heritage, such as the Republic Act 10066 of 2009, commonly known as the National Heritage Law. Moreover, the NCCA organizes institutional programs throughout the year to celebrate and promote different facets of Filipino culture. Notable examples include National Arts Month held every February, Food Month and Literature Month in April; Heritage Month in May, Linggo ng Musikang Pilipino (OPM Week) in the last week of July, and IP Month in October, among others. “The NCCA is also in charge of the cultural mapping and monitoring of the local culture and arts councils in the local government units,” he said, adding that it needs to intensify its efforts to be able to reach the grassroots levels. Since dreams don’t become reality through magic but by sweat, determination, and hard work, Casaysay said the NCCA will harness and maximize more platforms to reach a larger market, especially the younger generation. The dream of having a Department of Culture is neither a mountain high enough. The post On right track appeared first on Daily Tribune......»»
BCDA welcomes amended charter
State-run Bases Conversion and Development Authority, or BCDA, welcomed the approval of House Bill 8505, citing the impact of the measure in the development of the economic zones managed by the state-run firm, and in beefing up the state coffers to support the military’s pension fund. Approved on third and final reading last 22 August, House Bill 8505 is a consolidated substitute bill of Pampanga Representatives Deputy Speaker Gloria Macapagal-Arroyo and Senior Deputy Speaker Aurelio “Dong” Gonzales that seeks to amend Republic Act 7227 or the Bases Conversion and Development Act of 1992. The bill ensures the continuity of the BCDA’s function as a builder of great cities and a prime mover of national development, while also helping the state-run firm conquer legislative hurdles that could restrict the full development of its properties, from Fort Bonifacio in Metro Manila to Poro Point in La Union. “Our economic landscape is evolving at a tremendous pace, thus the need for BCDA to take big, bold moves to adapt with these changes and deliver the socioeconomic transformation we envision for our development areas in Clark,” BCDA President and Chief Executive Officer Joshua Bigcang said. “The bill will address gaps in the current charter and we couldn’t be more happy to express our gratitude to our friends in the House of Representatives for passing this bill on third and final reading,” Bingcang added. Under the proposed bill, the BCDA’s corporate term will be extended for another 50 years from its current remaining corporate life of 19 years. This extension will increase the confidence of investors when transacting with BCDA, as well as allow BCDA to continue its support to the AFP Modernization Program. Bill to raise capital to P400B The bill will also increase the authorized capital of the BCDA to P400 billion from P100 billion. Lastly, the bill seeks to convert five percent of BCDA’s economic zones to freehold status from leasehold, authorizing the BCDA to sell these properties for residential purposes. At present, lands within BCDA economic zones are only available on leaseholds, preventing the entry of affordable housing developers. Converting portions of the ecozones to freehold will liberalize the residential market for an average Filipino and allow full ownership of the property. “Once this is implemented, workers within our economic zones will be able to have their own homes, be closer to their jobs and live comfortably with their families,” Bingcang said. The BCDA estimates that this provision will free up 1,856 hectares of land, which can potentially generate P451.26 billion up to P1.45 trillion in revenues. This revenue may be earmarked for the military pension fund, a priority of President Ferdinand “Bongbong” Marcos Jr. The post BCDA welcomes amended charter appeared first on Daily Tribune......»»
Joining innovation frontiers
The innovative energy throughout the Philippine startup ecosystem is pulsating strongly more than ever. Even startup scenes across the world are beginning to feel it. This month, I met with the Philippine Consulate General in San Francisco and the Philippine Trade & Investment Center in Silicon Valley as IPOPHL aims to explore collaboration opportunities in the Bay Area. Intellectual property or IP protection and registration in the Philippines were topics of particular interest. The presence of IPOPHL was an excellent opportunity to organize a forum to discuss the advantages of the Philippine IP regime for companies and startups. At the forum, I shed light on the thrilling progress of the Philippine startup ecosystem, driven by a vibrant, tech-savvy and educated young population, combined with strong government and private sector support. In 2022, the Philippines proudly ranked fifth among ASEAN member states in the Global Innovation Index and remained to be an innovation achiever, a testament to the innovative energy that courses through our veins despite limited resources. The country’s startups also accounted for nearly 4 percent of the total $15.8 billion in startup equity funding raised in Southeast Asia, highlighting our increasing significance on the regional stage. Remarkably, despite a worldwide investment downturn, our investment landscape expanded to a substantial 9 percent, proving our resilience and commitment to fostering entrepreneurship and innovation. According to the 2023 Global Startup Ecosystem Report, Manila alone has grown its startup ecosystem to $3.5 billion, rising 85 percent from the $2.1 billion reported in the 2022 GSER. But it’s not just Manila that is showing promise. Highly urbanized cities such as Naga, Iloilo, Cebu and Davao are also emerging as exciting startup destinations. However, we need to reach more innovation companies to help them protect their IP assets. Recently, the Philippine Institute for Development Studies assessed innovation activities of 11,500 firms based on their engagement and types of innovation pursued (product or process innovation). The study showed that, as of 2021, a third (33.6 percent) of firms were innovation active, with innovation practiced more among medium and large establishments than micro and small ones. Of the innovation-active firms, only a quarter filed for IP rights. But we hoped things to be different starting 2022. Last year, applications for patents — which indicates the appetite to bring possibly commercially viable inventions to market — booked the fastest growth among all types of IP as volumes expanded 9.3 percent to 4,403. In the first half of this year, IPOPHL saw registrations for innovation-focused types of IP expand as public and private support dedicated to foster innovation are in full swing. Preliminary data from IPOPHL show that patent and industrial design filings grew year-on-year almost every month during the January to June period while utility models have seen consistent growth every month, positioning 2023 as a year for innovation. The expanded appetite for innovation may be attributed to the host of policies to streamline government processes, harmonize resources and support strategic innovation investments, such as through the passage of the Innovative Startup Act, Philippine Innovation Act, Ease of Doing Business Act, Foreign Investments Act, and CREATE Law. For its part, IPOPHL’s initiatives for startups such as IPOPHL’s Juan and Juana projects, Innovation and Technology Support Office, IPOPHL-Asian Institute of Management-Dado Banatao Incubator, free capacity building activities, were presented at the meeting with PCG-SF and the PTIC-SV. Trade Commissioner at the Philippine Consulate General May Nina Celynne Layug expressed interest in further discussing IPOPHL’s initiatives in the future and how PTIC-SV and IPOPHL can work together, especially in marketing the country to potential startup locators. These further collaborations could in the future make the Philippines among the innovation frontiers as ranked by the Global Innovation Index. In the next GII, to be released this September, we’re optimistic the country will be taking a few giant steps towards that goal. The post Joining innovation frontiers appeared first on Daily Tribune......»»
China imposes export curbs on critical metals, drones
Chinese controls on exports of two metals critical to making semiconductors came into force on Tuesday, a day after Beijing imposed curbs on the foreign sales of some drones. The Biden administration has in recent months stepped up measures to restrict Chinese companies' access to the most advanced semiconductors. China, which seeks to become self-sufficient in semiconductor design, says those measures are aimed at maintaining US supremacy in the field. From Tuesday, Chinese companies seeking to export gallium or germanium will need to obtain a license, according to a directive from the Ministry of Commerce. Under the new rules, they will also need to provide information on the final recipient and give details about their end use. China accounts for 94 percent of the world's production of gallium -- used in integrated circuits, LEDs and photovoltaic panels -- according to a report by the European Union published this year. For germanium, essential for fiber optics and infrared, China makes up 83 percent of production. The export curbs "send a clear signal that China holds all of the power in this dangerous game", analyst James Kennedy told AFP, calling the curbs "an unambiguous message" to the United States. "If the US chooses further escalation, China's next response will have consequences." For now, he said, China "aims to cause a minimum of damage" to the United States, because their needs in gallium and germanium are "low" and the metals can be acquired elsewhere. The measures come as the Biden administration mulls fresh curbs on Chinese access to high-tech chips, as well as on outbound US investments in China. Drone export ban They also follow curbs by Beijing on the exports of certain types of unmanned aerial vehicles, also known as drones. As of September 1, exporters will require a license laying out their end use as well as other details before they can be sold overseas. A China commerce ministry spokesperson said the move was not aimed at "any specific country or territory". But they did cite the risk of drones "being converted for military use" in justifying the restrictions. China is a major exporter of drones, with the US-blacklisted DJI representing more than 70 percent of global market share, according to CNBC. The company's drones are reported to have been used extensively by both sides in the war in Ukraine. In April 2022, DJI said it was temporarily suspending business in both Russia and Ukraine while it "internally reassess(ed) compliance requirements". The United States has accused China of mulling arms shipments to support Russia's campaign -- claims Beijing has strongly denied. A US intelligence report last week said Beijing likely supplied Moscow with dual-use civilian-military equipment employed in Ukraine, but noted that it is "difficult to ascertain the extent to which (China) has helped Russia evade and circumvent sanctions and export controls". The post China imposes export curbs on critical metals, drones appeared first on Daily Tribune......»»
Foreign Capital turns around — BSP
Registered foreign capital experienced a shift from net outflows into inflows in June due to recent market outturns. Bangko Sentral ng Pilipinas, or BSP, data showed that foreign portfolio investments, often called “hot money,” saw a net inflow of $1.23 million in June. The latest data marked a reversal from the $342.19-million net outflow a year ago in the previous year and the $124.49-million net inflow in May. The total gross inflows for June amounted to $889.44 million, while the gross outflows recorded during the month were $888.21 million. Most of the inflows in June were directed toward securities listed on the Philippine Stock Exchange or PSE, accounting for $700 million or 78.7 percent of the total. Key sectors Investments were primarily focused on property, banks, holding firms, food, beverage, tobacco and telecommunications sectors. The remaining $190 million or 21.3 percent was allocated to peso government securities, while less than 1 percent was invested in other instruments. During the month, the leading investor nations were the United Kingdom, the United States, Luxembourg, Singapore and Switzerland, together making up 84.2 percent of the total investments. The most recent data showed a net outflow of $803.33 million year-to-date, which is a significant change compared to the net inflow of $778.28 million in the first half of last year. The post Foreign Capital turns around — BSP appeared first on Daily Tribune......»»
‘Hot money’ net inflow at $1.23M in June 2023
Foreign capital registered with the Bangko Sentral ng Pilipinas experienced a shift from net outflows in June due to changes in financial market developments. Data from Bangko Sentral ng Pilipinas showed that foreign portfolio investments, often called "hot money," saw a net inflow of $1.23 million in June. The latest data marked a reversal from the $342.19-million net outflow in the same month the previous year and the $124.49-million net flow in May. The total gross inflows for June amounted to $889.44 million, while the gross outflows recorded during the month were $888.21 million. Most of the inflows in June were directed toward securities listed on the Philippine Stock Exchange, accounting for $700 million or 78.7% of the total. These investments were primarily focused on property, banks, holding firms, food, beverage, tobacco and telecommunications sectors. The remaining $190 million or 21.3 percent was allocated to peso government securities, while less than 1 percent was invested in other instruments. During the month, the leading investor nations were the United Kingdom, the United States, Luxembourg, Singapore and Switzerland, together making up 84.2 percent of the total investments. The most recent data showed a net outflow of $803.33 million year-to-date, which is a significant change compared to the net inflow of $778.28 million witnessed during the first half of 2022. . The post ‘Hot money’ net inflow at $1.23M in June 2023 appeared first on Daily Tribune......»»
IMF raises 2023 economic outlook but warns of slowing global growth
The International Monetary Fund has slightly upgraded its outlook for world growth this year on the back of resilient service sector activity in the first quarter and a strong labor market, the lender said Tuesday. But despite the mildly better economic forecast, growth is expected to slow to three percent in 2023 and then stay there, held down by weak growth among the world's advanced economies, the IMF announced in a new report. "The global economy continues to gradually recover from the pandemic and Russia's invasion of Ukraine. But it is not yet out of the woods," IMF Chief Economist Pierre-Olivier Gourinchas said during a press conference. The growth forecast for this year was raised by 0.2 percentage points from the IMF's last estimate in April, putting the world economy on track for three percent growth in both 2023 and 2024. This is down from growth of 6.3 percent in 2021, and 3.5 percent last year, the IMF announced in its update to the World Economic Outlook (WEO). Earlier this year, the IMF published its lowest medium-term forecast since the 1990s, citing slowing population growth and the end of the era of economic catch-up by countries including China and South Korea. On Tuesday, the IMF said the global inflation picture has improved somewhat, with consumer prices now expected to increase by 6.8 percent this year, down 0.2 percentage points from April's forecast. This is largely on account of subdued inflation in China, Daniel Leigh, the head of the IMF's World Economic Studies division, told reporters on Tuesday. "This is one of the only countries in the world right now where inflation is below the target rate," he said, adding that the IMF has revised China's inflation forecast for the year down sharply to 1.1 percent. 'Resilient' US consumption The IMF has lifted its outlook for US growth this year to 1.8 percent, up 0.2 percentage points from April, citing "resilient consumption growth in the first quarter." The still-tight labor market in the world's largest economy "has supported gains in real income and a rebound in vehicle purchases," the IMF added in its report. The fund sees US growth slipping to 1.0 percent next year, as savings accumulated during the pandemic dry up and the economy loses momentum. As with the April forecast, much of global growth this year is expected to come from emerging markets and developing economies (EMDEs) like India and China, with activity in advanced economies, predicted to slow substantially this year and next. Advanced economies are now anticipated to grow by 1.5 percent this year, up 0.2 percentage points from April, and by 1.4 percent in 2024. Citing positive economic news from the United Kingdom, the IMF has lifted the country's growth forecast for 2023 to 0.4 percent, leaving Germany as the only G7 economy expected to contract this year. The news is much more positive among the EMDEs, which are forecast to grow by 4.0 percent this year, and by 4.1 percent next year. The IMF's 2023 growth forecast for China remained unchanged at 5.2 percent, although it notes there has been a change in composition, with underperformance of investment due to the country's troubled real estate sector. Alongside property sector weakness, the IMF said foreign demand remains tepid and warned of rising and elevated youth unemployment, which reached almost 21 percent in May. The IMF lifted India's 2023 growth prospects to 6.1 percent, up 0.2 percentage points from April, citing "momentum from stronger-than-expected growth in the fourth quarter of 2022 as a result of stronger domestic investment." The fund now expects Russia's economy to grow by 1.5 percent this year, an upward revision of 0.8 percentage points from April, due to stronger-than-expected economic data fueled by "a large fiscal stimulus." The IMF anticipates the Russian government's budget deficit will expand to 6.1 percent this year, up from 1.4 percent last year, according to a spokesperson. The post IMF raises 2023 economic outlook but warns of slowing global growth appeared first on Daily Tribune......»»
Bourse gains big amid rising optimism
The local bourse extended its winning run climbing to the 6,600 level on Thursday as investors focused on corporate earnings, while the peso slightly slipped. The Philippine Stock Exchange index or PSEi ended at 6,613.50, gaining 71.59 points. All shares improved by 25 points to 3,515.91 level. “Philippine shares climbed higher again, buoyed by stronger-than-expected 2Q23 (second quarter 2023) earnings results locally and regionally. The latter (is) creating optimism for a soft landing for the economy,” Regina Capital Development Corp. Luis Limlingan said. Confidence gains Limlingan said the Department of Tourism’s foreign tourist arrivals report of over 3 million tourists in the first half of the year boosted confidence in the local market. Of all the counters, only the Services sector ended in the red, which declined by 4.25 points to 1,581.80. Leading the gainers was Holding Firms which increased by 68.39 points to 6,437.84; followed by Mining and Oil, 49.09 points to 10,011.44; Industrial, 40.76 points to 9,317.58; Financials, 35.86 points to 1,927.90; and Property, 34.16 points to 2,687.90. Volume of shares traded within the day reached 518.55 million, amounting to P4.52 billion. Advancers outnumbered losers at 99 to 81, with 44 firms left unchanged. Meanwhile, the peso closed almost unchanged at 54.52 to a dollar on Thursday from 54.51 finish in the previous day. The local currency opened the day weak at 54.55 from the last day’s kick-off at 54.45. The currency pair traded between 54.37 and 54.56 against the greenback, bringing the average level at 54.46. The volume of trade further increased on Thursday to $1.14 billion from $1.05 billion on Wednesday. The post Bourse gains big amid rising optimism appeared first on Daily Tribune......»»
‘Vibrant Iloilo City’ emerges
Once singularly known for its heritage homes, Spanish colonial churches and heirloom cuisine, Iloilo City is now fast emerging as a highly urbanized metropolis with a thriving economy driven by agribusiness, tourism, BPOs, trade and commerce. At no other time have the friendly and good-natured Ilonggos shown themselves to be both the driving force behind and the beneficiaries of Iloilo City’s rapid economic progress. Today, the city’s residents enjoy many employment opportunities from local and foreign investments, a booming tourism industry, government infrastructure programs and other big-ticket upgrades. Given Iloilo City’s immense potential, it is no surprise that there is a continuous demand for superior but affordable housing solutions among individuals seeking to live, work and play in a suburban-like environment. The excellent news is prominent real estate player Asterra has been quick to rise to this challenge and is making affordable condo homes accessible to a vast majority of property seekers in this progressive city. With its entry into the Iloilo market, Asterra, a personal housing project of Vista Land chairman Manny B. Villar, acknowledges investors’ keen interest in condominium investments’ affordability and potential returns. Promising upscale condominium living while ensuring affordability and long-term value, Asterra properties in Iloilo City will feature walkable lanes and landscaped pocket gardens, plus leisure facilities such as a swimming pool, fitness gym, clubhouse, basketball court and a children’s playground. Condo units will have cleverly laid-out living spaces highlighted by large windows for better ventilation and natural lighting. Apart from its proximity to crucial lifestyle destinations like schools, hospitals and shopping malls, Asterra will offer its residents easy access to famous beaches, island getaways, and other natural attractions such as rivers, mountains, waterfalls and caves. On Asterra’s expansion in Iloilo, Guacena shares, “Rest assured, Asterra will continue granting Filipinos boundless opportunities to buy their dream condo homes and purchase properties with potential for long-term returns on investment.” The post ‘Vibrant Iloilo City’ emerges appeared first on Daily Tribune......»»
Simplifying tax exemption on foreign-sourced dividends
Intercorporate investments are becoming a common feature among companies doing business in the Philippines and on foreign shores. A diversified portfolio spreads the risk of doing business and provides other advantages, such as gaining access to another market, increase in asset base, gaining a competitive advantage, or simply increased profits through stock ownership in a company that distributes dividends......»»
Central Luzon: Burgeoning industrial hotspot
AyalaLand Logistics Holdings Corp. strengthens its foothold in Central Luzon with Pampanga Technopark. The 270-hectare development is the first master-planned agro-industrial township in this region. The development will be home to manufacturing and logistics locators, a bagsakan or agricultural wholesale market and commercial-retail spaces for the township’s social and recreational activities. With 270 hectares of gross land area, Pampanga Technopark will serve as a mixed-use development. Currently, phases 1 and 2 are registered with the Board of Investments as Domestic Industrial Zones, with phase 3 lined up next. With shopping, dining and recreational spaces soon to rise in Pampanga Technopark, the development is designed to bring lifestyle experiences to the communities working and residing within or around the area. Pampanga Technopark is allotting 2,000 sqm of gross leasable area across over 30 retail spaces featuring homegrown Kapampangan restaurants, plus several retail and service merchants. On top of this, lots are also available for commercial uses such as shops and outlets, medical centers, offices, co-working spaces, business hotels and more. There will also be a variety of quick service restaurants and a gas station for motorists. Moreover, Pampanga Technopark will be a new location of a bagsakan (agricultural wholesale market) which will be complemented by ALLHC’s ALogis and ALogis Artico facilities, all slated for completion within the first half of 2024. The ALogis ready-built facilities will span 8,000 sqm of warehouse space, while ALogis Artico cold storage will feature 5,000 pallet positions with temperature ranging from 10°C to -20°C. The bagsakan will cover 3,000 sqm of space, offering both wholesale and retail of agricultural produce and local products within the marketplace. All components will support the agriculture supply value chain in Luzon. Accessibility and convenience Located in Mabalacat City, one of the biggest transportation hubs in Central Luzon, Pampanga Technopark will be accessible through various major road networks including the North Luzon Expressway, Subic-Clark-Tarlac Expressway and MacArthur Highway. Additionally, the North-South Commuter Railway project will soon connect the existing Tutuban (Manila) Station to Clark, thereby contributing to the city’s economic progress. Pampanga Technopark is poised to serve as a gateway to the international markets. Strategically located near major infrastructures, it is approximately 30 minutes away from Clark International Airport and an hour away from Subic Bay International Terminal. The upcoming New Manila International Airport will be roughly an hour away from the development. A sustainable development For many years, ALLHC has been a trusted industrial real estate company for creating sustainable environments that support businesses. The soon-to-rise Pampanga Technopark bears with it the promise of connecting commerce and communities. As a dynamic center for business and leisure activity, Pampanga Technopark ensures pedestrian mobility and transit connectivity with allocated sidewalks throughout the township and an easily-accessible public transport terminal serving both in-city and regional transit routes. Helping improve the property’s resilience to environmental stress and geohazards are native trees to be used for landscaping, five detention ponds serving as spaces for rainwater absorption and green and open spaces including a dedicated 1.2-hectare park area. Countryside development ALLHC aims to build its national footprint by being in 10 key areas by 2025, creating a network of industrial and logistics developments by following the key road infrastructure and the nautical highway. “We will introduce a modern food terminal and this will be supported by our cold storage and dry warehouse facilities. Farmers from Northern Luzon and all over Central Luzon can bring their produce here, and we can preserve and store them with the proper facilities. We hope this would help all the farmers and our supply chain,” shared ALLHC president and chief executive officer Jose Emmanuel H. Jalandoni. He added, “What is happening here in Pampanga Technopark is a new township. Industrial park, agro hub, commercial, retail — beneficial to all Pampangueños. Through Pampanga Technopark, we are committed to work together to create employment opportunities for all Filipinos.” BOI executive director for Investment Promotion Services Evariste M. Cagatan stated, “ALLHC has been a steadfast partner of the BOI in providing location options for potential investors, and our partnership has been proven effective in matching investment-ready locations to our local and foreign investors. We are very excited with this project as it shows support in the government’s proactive stance to promote economic activities outside of Metro Manila. There has never been a better place and a better time to make it happen in the Philippines, and this time, we will make it happen right here in Pampanga.” The post Central Luzon: Burgeoning industrial hotspot appeared first on Daily Tribune......»»
US business titans flock to China despite fraying ties
From Elon Musk to Bill Gates and Apple's Tim Cook, some of the United States' biggest business titans have headed to Beijing, seemingly defying the barrage of doomsayer narratives around the US-China trade war. The stream of visits by some of the world's richest men began after China abruptly ended nearly three years of Covid isolation late last year. In Beijing, the American magnates have talked up their optimism about China's vast market and trade ties between the world's two largest economies. Landing in China in late May, Tesla owner Musk reportedly said that Beijing and Washington's interests were "intertwined, like conjoined twins, who are inseparable from each other". Apple CEO Cook also spoke of his firm's "symbiotic" relationship with China -- home to the world's largest iPhone factory. The biggest honor of all -- a meeting on Friday with Xi Jinping -- was reserved for Gates, whom the Chinese leader hailed as "our old friend", according to the state-run People's Daily. The visits come as US-China trade tensions deepen, and after trade between the two countries reached a record $690.6 billion last year, according to the US Department of Commerce. But businesses are worried about a slow in US exports to China, America's third-largest trading partner, with the drop strongly felt in the tech industry. Citing national security concerns, the United States in 2022 blocked exports to China of the most advanced semiconductors and the equipment needed to make them. China has hit back by vowing to accelerate its efforts to become self-reliant on semiconductors. "China-US trade was... once mutually dependent and beneficial," analysts at the Peterson Institute for International Economics wrote in a recent paper. "US exports to China are one more channel through which the bilateral relationship continues to deteriorate." 'Minority voice' The US government is engaged in high-stakes disputes with China over policy issues ranging from Taiwan to human rights, with no sign of tensions abating despite an upcoming visit to Beijing by US Secretary of State Antony Blinken. US businesses in China have long been at the forefront of advocating for engagement, arguing that a strong economic relationship could spur reform. The visits by the magnates show just how embedded some of the world's biggest firms are in China, despite the political tensions. With China growing more repressive under Xi, however, long-influential business lobbies are "increasingly a minority voice", according to Joe Mazur, an analyst at Trivium. "The business community is one of the last remaining pieces of ballast that is stabilizing the US-China relationship." Blinken visit The business community in China will be closely watching Blinken's visit this weekend, which analysts say is unlikely to ease the confrontation. "American business has substantial investments, thousands of employees, and still considers China a promising market," James Zimmerman, a Beijing-based former chairman of the American Chamber of Commerce in China, told AFP. But the US and Chinese governments, he said, "have hollowed out any level of collaboration and there is little room for developing even a pretense of goodwill". The US-China Business Council, long a key interlocutor between Beijing and Washington, feels left in the lurch, with its efforts against stricter trade curbs having failed to sway an increasingly hawkish Congress. "They have to make the case for continued engagement with China when the received wisdom in Washington is that the moment of engagement has passed," Mazur said. Is it worth it? Recent moves by Beijing to restrict overseas access to data and raids on consulting firms' offices have also spooked foreign companies -- adding to a sense that doing business in China is increasingly not worth the risk. "There's a shift in sentiment," said Claire Chu, a senior China analyst at defence intelligence company Janes. Many companies may "wonder maybe, even if I don't exit, I should start thinking about it", Chu added. "Dawn raids with little due process and the indefinite detention of employees without access to legal counsel has become the norm for both Chinese and foreign companies alike," Zimmerman said. Many top manufacturers are openly recalibrating their reliance on China: both Apple and Tesla are looking to move some of their production out of the country. "Much the same way that people said 10 years ago that you need to be in China to be relevant, now relevance will depend upon a strategic reshoring exercise," Zimmerman added. The post US business titans flock to China despite fraying ties appeared first on Daily Tribune......»»
RCEP seen driving trade funds demand
The Regional Comprehensive Economic Partnership or RCEP among members of the Association of Southeast Asian Nations plus five other countries will help drive demand for business loans from Philippine banks, economists told the Daily Tribune on Thursday. “RCEP would expand the sources of cheaper imports for foreign and local investors, including small and medium enterprises or SMEs, that manage their respective global supply chains,” Rizal Commercial Banking Corporation chief economist Michael Ricafort said. Effective starting 2 June, RCEP aims to gradually reduce tariff rates on various goods from ASEAN members and other countries over 20 years. It is also seen as streamlining rules on intellectual property, telecommunications, financial services, e-commerce and professional services. Doing business smoothly Ricafort said these mechanisms will also allow foreign firms to do business in the Philippines more smoothly. “It would help attract more foreign direct investors to locate in the country as a production base, as well as an access point to bigger export markets of RCEP member countries in the region and other parts of the world,” he said. Aside from the Philippines, the 14 other trade partners in RCEP are Cambodia, Singapore, Vietnam, Brunei, Malaysia, Laos, Myanmar, Thailand, Indonesia, New Zealand, Japan, Australia, South Korea and China. New opportunities “RCEP will create new opportunities, expand business operations, and thereby improve the business environment for SMEs in the Philippines by which banks should benefit as well,” Security Bank chief economist Dan Roces said. RCEP members could generate total exports worth $5.2 trillion and a gross domestic product of $26 trillion, according to global business consultancy PricewaterhouseCoopers or PwC. However, Ricafort said local SMEs should adapt fast by improving their employees’ skills and business strategies. “RCEP would also mean increased competition for some local producers, including SMEs, in view of the influx of cheaper imports from other RCEP member countries for the coming years.” The Department of Trade and Industry had reported at least 52 percent of micro businesses and SMEs fully reopened in 2021. “The country’s membership in RCEP would be one of the sources of economic growth and recovery especially after the Covid-19 pandemic,” Ricafort said. The post RCEP seen driving trade funds demand appeared first on Daily Tribune......»»
Online trade maintains strong growth last year
Online stock market transactions rose as those using it grew by 8.6 percent in 2022 to 1,258,907 accounts. Despite the muted growth in online accounts compared to previous years, the average value per online transaction rose by 33.2 percent to P46,236.40 from P34,701.80 in 2021. While close to 100,000 online accounts were added last year, its non-online counterpart recorded a decrease of 7,156 accounts to 453,827. Given this, the total number of stock market accounts registered in 2022 was 1,712,734, up by 5.7 percent from 2021’s 1,620,017 accounts. “The growth in accounts may have been subdued in 2022 but I expect an uptick in numbers again with the foray of new stock brokerage firms in the online trading space and the upcoming rollout of stock investing features in finance apps,” PSE president and CEO Ramon Monzon, said. “The total number of stock market accounts was also affected by the clean-up of dormant accounts done by the trading participants,” Monzon added. The said cleanup of inactive accounts was done in compliance with Republic Act 9160, the Anti-Money Laundering Act. The accounts were mostly owned by local retail investors as they held a little over 98.0 percent of the total stock market accounts. Institutional investors and foreign investors owned 1.9 percent and 1.7 percent of the total stock market accounts, respectively. Investor profile The Stock Market Investor Profile Report showed that there were slightly more female investors in 2022 at 50.2 percent. For online accounts, 51.0 percent were held by female investors while the rest are owned by their male counterparts. A surge in accounts owned by investors in the 30 to 44 age range was recorded in 2022. About half of the retail accounts were held by investors in the 30 to 44 age group from a 33.9 percent share in 2021. The 45 to 59-year-old investors comprised 20.7 percent of accounts, followed by the 18 to 29-year-olds at 18.7 percent and investors aged 60 and above at 10.8 percent. The ownership by age of online accounts mirrored that of total retail accounts with the 30 to 44 age group taking up the largest share at 55.7 percent of online accounts. The 18 to 29-year-old investors followed registering a 20.8 percent share. Meanwhile, the 45 to 59 age bracket held 18.4 percent of the online accounts and the 60 and above age group owned 5.0 of online accounts. Investors with an annual income of less than P500,000 annually made up 53.5 percent of retail accounts and 72.9 percent of online retail accounts. Those who earned an annual income of P500,000 to P1 million had a 25.6 percent and 13.6 percent share in retail accounts and online retail accounts, respectively. Investors whose annual income is above P1 million comprised 20.9 percent of retail investors and 13.6 percent of online investors. In terms of location, Metro Manila continued to have the biggest number of retail investors at 81.5 percent, trailed by Luzon 10.7 percent, Visayas at 3.7 percent and Mindanao at 2.5 percent. Investors based overseas accounted for 1.7 percent of retail investors. Foreign nationals with investments in the local market were mostly Chinese, American, Japanese, Korean and Taiwanese. The post Online trade maintains strong growth last year appeared first on Daily Tribune......»»
Spanish firm investing $38M in Phl wind market
Spanish firm BlueFloat Energy is investing as much as $38 million or P1.2 trillion at current exchange rates to build 7.6 gigawatts of offshore wind projects, or OSW across the country in the next decade. At a press briefing on Friday, BlueFloat Energy CEO Carlos Martin announced that the company has secured wind energy contracts for four sites in Central Luzon, South Luzon, Northern Luzon and Southern Mindoro. Each site can have a capacity that ranges from 1.5 GW as the smallest to 3.5 GW as the highest. “In terms of the investment, the general rule is one megawatt of offshore wind requires an investment between $3 million to $5 million,” Martin said. “We can expect the first of these projects to be in the execution phase and nearing completion by the end of the decade or by 2030,” he added. Martin pointed out that its massive investment in the Philippines is the company’s largest foray in terms of the total pipeline of projects under development. BlueFloat Energy has ongoing project developments in Australia, New Zealand and Taiwan. Meanwhile, BlueFloat Energy Country Manager Raymund Pascual pointed out that the Philippines’ aggressive clean energy development has caught the attention of many foreign investors. “The demographics we have been seeing are favorable and one of them is the updated Philippine Development Plan from 2023-2028, which suggests a whole-of-country approach,” Pascual said. “There will be international partnerships whenever necessary,” he added. The government is racing to maximize wind energy as a viable power source as demand grows bigger. The Philippines OSW Roadmap launched last year showcased that the country has 178 GW potential OSW resources. With more foreign firms pouring in investments in the country, the Board of Investments is optimistic to hit or even exceed its P1.5-trillion target investments for the year. BOI Managing Head Ceferino Rodolfo recently said the government’s target will be achievable through the five major renewable energy projects that will be finalized this year. BlueFloat’s investment was among the five deals. Initially, the BOI set a P1-trillion investment target for the year, but with a “very healthy flow of investment project applications,” the agency hiked its target to P1.5 trillion. ### The post Spanish firm investing $38M in Phl wind market appeared first on Daily Tribune......»»
Inflation cool down possible — Manulife
Manulife Philippines sees the country’s inflation rate falling within the target range of Bangko Sentral ng Pilipinas from 2 percent to 4 by year’s end. “We can expect negative base effects in the coming months to significantly result in slower inflation data, in line with the BSP inflation forecast for May,” Jean de Castro, head of fixed income at Manulife Philippines Investment Management and Trust Corporation, said Thursday. The BSP expects inflation in May to have slowed further to 5.8 percent from 6.6 percent in April. Overall prices of goods and services have decelerated since January, when inflation peaked at 8.7 percent. With the inflation downtrend, BSP Governor Felipe Medalla said the Monetary Board is keen on pausing rate hikes further, after its meeting last month resulted in a sustained policy rate of 6.25 percent. Cheaper borrowing costs De Castro said the twin trajectories should help demand for bonds grow as borrowing costs become cheaper. “The moderating inflation environment coupled with the pause in monetary policy actions supports the positive local bond outlook for the second half of 2023.” Mark Canizares, head of equities at Manulife Philippines, said a similar forecast should also spread to the stock market as consumers obtain extra funds for investments amid a low-inflation environment. “Domestic consumption, which benefited as the country re-opened, will likely get some support as well from easing prices, as raw material and other input costs moderate.” Canizares added “rate-sensitive sectors such as residential property will likely benefit from this tailwind.” Property consultancy Colliers Philippines reported slower completion and launches of condominium projects in the first quarter this year due to rising prices of construction materials and elevated interest and mortgage rates. During this period, completed condominium projects were down 70 percent year-on-year, while reservations for pre-selling units were “decent” at 70 percent growth year-on-year. The post Inflation cool down possible — Manulife appeared first on Daily Tribune......»»
Eton Properties targets C. Visayas
Eton Properties Philippines Inc., or EPPI, the real estate development arm of the Lucio Tan Group, has set out a massive expansion plan for the coming years, which includes its entry into the Central Visayas market. During its recently held annual meeting, Kyle C. Tan, the newly-appointed Eton Properties president and chief executive officer, announced that the plan will spur long-term growth for the company. EPPI targets to transform a 35-hectare property in Lapu-Lapu City in Mactan Island, into a new lifestyle community in the region. The project features a 600-meter beachfront, beautiful sandy beach cover, and an internal lagoon area, perfect for a modern but suburban feel. “This project will be envisioned as the next business and leisure destination in one secured and exclusive community in Cebu,” Tan said, adding that the project will also leverage partnerships and joint ventures to further scale the market’s needs and support nation-building. Eton City to serve BPO market Meanwhile, the company’s Eton City in Laguna, a 641-hectare township, will be improved “to become the next wave city South of Metro Manila.” Located along South Luzon Expressway, Eton City will cater to the increasing office demand for Information Technology and Business Process Management. The company plans to commission international architectural firms in developing the office buildings within the township. Eton Properties is the real estate brand of the Lucio Tan Group, one of the biggest business conglomerates in the Philippines. Its foreign counterpart, Eton Properties Ltd, has real estate brands in Hong Kong and mainland China. The post Eton Properties targets C. Visayas appeared first on Daily Tribune......»»