ADB: Sentiment lifts East Asian bonds
The improving global investment sentiment and financial conditions provided a much-needed lift for local currency bond markets in emerging East Asia, despite risks from the coronavirus disease (COVID-19) pandemic, the latest issue of the Asian Development Bank’s (ADB) Asia Bond Monitor says. “Governments in the region have been agile in dealing with the impact of […] The post ADB: Sentiment lifts East Asian bonds appeared first on Daily Tribune......»»
Philippines bond market grows 8.3 percent in Q2
The local bond market continued to grow in the second quarter to hit P11.7 trillion, driven by both government and corporate bonds, according to the Asian Development Bank......»»
ADB urges Philipines to boost municipal bond issuance
The Asian Development Bank is pushing for greater issuance of municipal bonds in the Philippines and three other countries in Asia to expand financing options......»»
No point hiding
At a time of greatest need, one learns the true character of those who proclaim to always be on the side of the marginalized sector. Business big kahuna San Miguel Corp.’s motto, “Walang iwanan” (Leave no one behind), became an empty sales pitch during the Mindoro oil spill, one of the biggest catastrophes of its kind in the country’s history. SL Harbor Bulk Terminal Corp., a subsidiary of San Miguel Shipping and Lighterage, contracted RDC Reield Marine Services to ship 900,000 liters of industrial oil on its tanker, the MT Princess Empress, that later sunk off the coast of Oriental Mindoro. SMC has not addressed calls to take responsibility for the 28 February incident. It has instead maintained its silence on its role in the MT Princess Empress tragedy. Groups representing the oil spill-affected communities in Mindoro decried the audacity of SMC in covering up its involvement with a mere cleanup drive. Mindoro communities continue to worry about the increased presence of tankers carrying toxic fuel in their waters courtesy of SMC, which is beefing up its liquefied natural gas business in the area. Protect the Verde Island Passage, which advocates freeing the marine treasure called the “Amazon of the Oceans” of human threats, said SMC cannot be trusted with safety due to its dismal record in safeguarding communities from the destructive effects of its businesses. “We hope that this time around, SMC will be called to account for its role in the MT Princess Empress oil spill, as stated in the Revised Rules on Prevention, Containment, Abatement, and Control of Oil Marine Pollution of Philippine Coast Guard Memorandum Circular 01-2005,” Fr. Edwin Gariguez, lead convenor of Protect VIP, said. With SMC as the charterer of the oil tanker, it is considered the owner of the vessel and the spiller of the oil, according to the ecology warrior. His group has demanded that SMC pay at least P70 million in cash bonds consisting of P50 million for cleanup and containment and P20 million for the damage and payment to the impacted communities as a preliminary reparation. “Environmental destruction and livelihood deprivation come with a hefty price tag. SMC should be in the news for something big — we hope it will be for the biggest penalty ever imposed on a Philippine company,” Gariguez said. In a Senate investigation, it was estimated that the oil slick from the tanker affected 20,000 hectares of coral reefs, 9,900 hectares of mangroves, and 6,000 hectares of seagrass beds in Oriental Mindoro, Occidental Mindoro, Palawan and Antique. In the investigation, it was found that RDC had been operating under a falsified certificate of public convenience that SMC appeared to have tolerated. The scant mention of SMC during the Senate proceedings did not escape the notice of many since the senators were directing the blame for the tragedy on the vessel owner and the maritime agencies. One senator even had the temerity to free SMC from any accountability, saying that under the law the charterer is not responsible for an oil spill. Given that such a law exists, it can’t be denied that the SMC cargo caused untold misery. The Asian conglomerate has pictured itself as a responsible corporate citizen, particularly during the pandemic years. It has been reported that residents affected by the oil spill continue to experience dizziness, nausea, headaches and fever. A report by the National Disaster Risk Reduction and Management Council, or NDRRMC, said the oil spill affected 42,487 families, 200,244 persons, and 24,698 farmers; caused P6.7 million worth of damage to the livestock, poultry, and fisheries industries, and P4.9 million in estimated damage to agriculture. In the Mindoro oil spill, SMC can’t use its minions in the judiciary and the legislature to escape accountability for its glaring neglect of the safe shipment of cargo it owned. It must man up to its responsibility. The post No point hiding appeared first on Daily Tribune......»»
Equities edge higher as inflation moderates
Global stocks mostly edged up on Monday as investors remained optimistic that interest rates will not go higher and China made moves to boost lackluster growth. Wall Street stocks finished a choppy session modestly higher, as investors traded cautiously ahead of key economic and earnings releases later in the week. European stock markets were boosted by data showing the economy grew in the second quarter and inflation slowed in July, raising hopes the European Central Bank will be able to hold off from hiking interest rates. Asian equities closed with gains, tracing a pre-weekend bump on Wall Street and bolstered by new pledges from China of measures to stimulate its stuttering economy. In the eurozone, official figures on Monday showed the economy grew 0.3 percent in the second quarter, while inflation eased to 5.3 percent in July from 5.5 percent the previous month. That could support expectations for a pause in ECB rate hikes after its chief Christine Lagarde said Sunday "we are reaching our goal" of inflation at around two percent. "We do expect a much lower reading in inflation by the end of the year," said Bert Colijn, a senior economist at ING. Inflation remains much higher in the UK, at nearly eight percent, putting the Bank of England on course to raise interest rates once more on Thursday. In China, the world's second-largest economy, the government announced fresh measures to boost consumption days after unveiling some initiatives for light industry. The move comes as spending by China's vast number of consumers remains subdued even after the lifting of strict Covid containment measures late last year. A fresh round of figures showed the country's manufacturing activity continued to shrink in July, albeit at a slightly slower pace than last month. Hopes for a government drive to kickstart the economy have provided much-needed support to markets over the past week, even as some observers warn the large-scale measures seen in the past were unlikely. Oil prices kept rising. "Fears that Saudi Arabia will go further and extend their production cuts into September is seeing demand return at the same time as the US economy looks to be faring better than expected," said analyst Michael Hewson at CMC Markets. In currency markets, the yen continued its retreat against the dollar as the Bank of Japan announced a move to buy government bonds. This was seen as a message to the market that the central bank was committed to keeping the long-term interest rate in check. The bank slightly increased the flexibility of its super-easy monetary policy last week, but it was seen as a small enough change not to disrupt the market. The post Equities edge higher as inflation moderates appeared first on Daily Tribune......»»
New door opens
The Maharlika Investment Fund bill after months of deliberation is as good as signed. The next step would be the crafting of the implementing rules and regulations or IRR where the nitty-gritty of the law will be addressed. The IRR will be prepared by economic managers. President Ferdinand “Bongbong” Marcos Jr. will then pick the people who will comprise the Maharlika Investment Corp. or MIC that the law mandates will manage the fund. The MIC will manage the sovereign wealth fund that will invest in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure, based on the provisions of the law. The battleground for the MIF thus returns to the Executive branch as detractors now have the economic managers in their crosshairs as the IRR is being drafted. One of the prime movers of the MIF, Albay Rep. Joey Salceda, said the IRR will flesh out the specifics of the crucial fund build-up and the forming of the MIC, such as the company’s regulation by the Civil Service Commission, the listing of the MIF in the stock market, and allowing multilateral financing institutions like the World Bank and Asian Development Bank to be strategic partners of the MIF. “I congratulate House Speaker Ferdinand Martin Romualdez, Chairman Irwin Tieng, and our Senate counterparts. I will continue to offer what I can by way of prior experience and subject matter expertise in the drafting of the IRR,” Salceda said. Congress ratified the bill before adjourning its session last 31 May but the final copy had to be refined following intrigues hurled by unrelenting critics who deemed it unconstitutional primarily due to the differing prescriptive periods for filing charges related to irregularities. The discrepancies proved to be clerical errors and not a reason to veto the bill as the inconsolable minority had demanded. The MIF comes at a propitious period after the economy grew by 7.6 percent and 7.2 percent in the third and fourth quarters, respectively, and 6.4 percent in the first quarter of this year — numbers that show the country has among the fastest development clips in the world. Finance Secretary Benjamin Diokno expects the MIF to be in full operation before the end of the year. The P125-billion seed fund will be drawn from the Land Bank of the Philippines, the Development Bank of the Philippines, and the national government. The national government’s contribution will come from Bangko Sentral ng Pilipinas dividends, its share in the income of the Philippine Amusement and Gaming Corp., privatization proceeds, and royalties and special assessments. Being looked into is channeling Malampaya natural gas earnings to bolster the fund. The MIF will initially have at its disposal P75 billion by the end of the year, which will come from Landbank and DBP and may forthwith be invested in several ventures or the capital markets. Fund managers estimate a return of over 10 percent just for the initial P75-billion investment. Economic managers envision the MIF as creating a new source of financing for the government which now mainly relies on tax revenues and borrowings to plug the fiscal gap. The MIF will free up the government’s fiscal space as the burden of borrowing is reduced with the sovereign wealth fund augmenting the government’s resources. Another MIF function will be to accelerate investments in development projects such as infrastructure through tie-ups with capitalists and other sovereign funds. The perennial budget deficits, which are the culprit in the debt pile-up, may soon be a thing of the past when the MIF goes full throttle. The post New door opens appeared first on Daily Tribune......»»
Losing cash while holding it
Consulting firm Manulife Investment Management or MIM has presented a financial paradox in that an investor loses money kept in the vault for too long. Investors are increasingly concerned about market risks because of factors such as the increases in US Federal Reserve interest rates, individual banking crises, and increasingly serious geopolitical risks. As a result, many investors are reluctant to invest in the market, and some even sell their stocks and bonds to minimize losses. In response, banks offer higher deposit rates to appeal to investors, who choose to hold money in the form of term deposits. MIM, however, warned in a report that holding cash may seem like a good option during periods of market volatility, but cash remains vulnerable to inflation, especially in the current macroeconomic environment. Inflation erodes the purchasing power of cash, meaning it will buy less with it in the future. A simple calculation to prove the difference between holding cash versus stocks: Between 2011 and 2021, the return on cash (as measured by the annualized return of the three-month US Treasury bill) was 0.47 percent. Adjusted for inflation, which was 2.17 percent on average during those 10 years, the return was minus 1.7 percent. Put simply, $100,000 in Treasury bills in 2011 would have had $84,243.26 of buying power 10 years later. Conversely, over the same 10-year period, a $100,000 investment in the S&P/TSX composite dividend index, the stocks benchmark in Canada, would have resulted in $200,797.37 of buying power, thanks to its inflation-adjusted annualized return of 7.22 percent. In addition, investors should also consider how real interest rates (i.e. bank deposit rates minus inflation) affect their returns. From January to February 2023, the annual nominal interest rate on three-month term deposits in most Asian countries or regions varied from 2.5 percent to 5.4 percent. Then there’s deposit rates However, when adjusted for changes in the consumer price index during the same period, the real three-month time deposit annual interest rate ranged from negative 5.2 percent to 1.09 percent. “History tells us that equities, bonds, and some income-oriented investments have the potential to deliver higher long-term returns than cash and could potentially outstrip inflation,” MIM’s report stated. From 2009 to 2022, compounded annual nominal returns for Asian equities and bonds were 8.15 percent and 4.38 percent, respectively. Real estate investment trusts in the Asia-Pacific region generated an annualized return as high as 11.38 percent. The post Losing cash while holding it appeared first on Daily Tribune......»»
ADB raises $4 billion from global bonds
The Asian Development Bank raised $4 billion from the issuance of two-year and 10-year global bonds, with proceeds to form part of its ordinary capital resources to support developing member countries......»»
WB seeks wider climate fund access
Multilateral lender World Bank urged the government on Tuesday to offer incentives for investments in climate smart agriculture and renewable energy, and to use environmental, social, governance bonds to finance climate actions aimed at countering disasters. During a presentation of its Country Climate and Development Report 2022 at the Southeast Asian Regional Center for Graduate Study and Research in Agriculture, World Bank officials emphasized the need for the government to increase private sector access to climate financing, as well as create investment policies that are attractive for climate action, particularly with regards to ESG bonds. “Public and private investments are needed to finance adaptation through climate-resilient infrastructure,” World Bank project leader and lead economist Souleymane Coulibaly said at the SEARCA forum. “Financing mitigation measures from private sector should be incentivized by new regulatory technology-push and demand-pull policies,” Coulibaly added. Climate-smart agriculture practices World Bank senior environmental economist Dr. Stefano Pagiola suggested that the government should improve the appeal of climate-smart agriculture practices for farmers as they offer triple benefits: higher productivity, higher resilience, and lower greenhouse gas emissions. The World Bank has also identified certain policies that should be avoided, such as policies that do not require farmers to pay for water as it does not incentivize them to use water efficiently. In Luzon and Cordillera, a profitable technology for farmers is using blight-resistant white potatoes in crop rotation with green cabbage and rainwater harvesting, with an estimated financial return of over P500,000 per hectare. Another technology that offers good financial returns in Visayas and Cordillera is rice-onion crop rotation with early maturing rice. SDG 13 SEARCA director Dr. Glenn B. Gregorio, who has been developing adaptation solutions to the climate challenge since 1986, emphasized the critical importance of discussions around climate policies. “Sustainable Development Goal 13 for climate action is close to my heart. I have been a plant breeder for abiotic stresses (developing rice) for drought tolerance, submergence tolerance, and salt tolerance,” Gregorio said. He added that Climate change adaptation techniques in agriculture can help crops withstand the effects of increasing temperatures due to global warming and decreasing rainfall. Gregorio emphasized the importance of collaboration between academia and industry to promote sustainable practices. The post WB seeks wider climate fund access appeared first on Daily Tribune......»»
Bonds to fast-track SDGs in ASEAN pushed
The Asian Development Bank has proposed a new way for countries in Southeast Asia to tap global capital markets to achieve the Sustainable Development Goals.....»»
ADB backs greater use of social bonds
The Asian Development Bank is pushing for the increased use of social bonds as an additional platform for governments to raise additional resources to recover from the pandemic......»»
ADB: Sentiment lifts East Asian bonds
The improving global investment sentiment and financial conditions provided a much-needed lift for local currency bond markets in emerging East Asia, despite risks from the coronavirus disease (COVID-19) pandemic, the latest issue of the Asian Development Bank’s (ADB) Asia Bond Monitor says. “Governments in the region have been agile in dealing with the impact of […] The post ADB: Sentiment lifts East Asian bonds appeared first on Daily Tribune......»»
ADB: Government bond yields to weaken
Yields on government bonds will remain weak as investors continue to seek safe holdings amid the economic uncertainties caused by the COVID-19 pandemic, the Asian Development Bank said......»»
Philippines left out of foreign investor return to East Asian bonds
“Investors reduced their risk exposure during the quarter, leading to continued fund outflows against the backdrop of rising uncertainty from the pandemic and a low-interest-rate environment…,” ADB explained......»»
Antipolo City throws support on Ajido
The Antipolo City government led by Mayor Casimiro “Jun” Ynares III will provide support to Antipolo-born swimmer Jamesray Mishael Ajido, who won the country’s lone gold medal in record-breaking fashion at the recent 11th Asian Age-Group Swimming Championships......»»
Jollibee invests $28 million in beverage tech firm
Filipino-owned Asian food conglomerate Jollibee Foods Corp. is investing $28 million for a 10 percent stake in beverage technology company Botrista Inc. to support the growth of its coffee and tea business......»»
EAM Jaishankar visits Indian Coast Guard Ship Samudra Paheredar in Manila
Manila [Philippines], March 27 (ANI): External Affairs Minister S Jaishankar visited Indian Coast Guard Ship Samudra Paheredar on Tuesday during its port call to Manila and said that India's Act East policy and Indo-Pacific vision will continue to give it a more contemporary form. He presented his remarks at the Indian Coast Guard Ship Samudra Paheredar on Tuesday and said that his visit and the ship's presence signify th.....»»
Opinion - South China Sea- Philippines must softly manage disputes or miss out economically
Manilas assertive transparency strategy is touted as a model for managing maritime disputes but it diminishes key economic opportunities. As Chinese investment pours into other Southeast Asian countries, the Philippines must reduce geopolitical risks without acquiescing to Beijing......»»
Coast Guard ship Samudra Paheredar on overseas deployment to ASEAN, arrives im Phillipines
Manila [Philippines], March 25 (ANI): India Coast Guard ship Samudra Paheredar, a specialized Pollution Control Vessel, reached Manila, Philippines on Monday, marking the commencement of its (overseas deployment) OSD mission to Association of Southeast Asian Nation (ASEAN) countries. ASEAN countries includes Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam, " acc.....»»
Coast Guard ship Samudra Paheredar on overseas deployment to ASEAN nations, arrives in Philippines
Manila [Philippines], March 25 (ANI): India Coast Guard ship Samudra Paheredar, a specialized Pollution Control Vessel, reached Manila, Philippines on Monday, marking the commencement of its (overseas deployment) OSD mission to Association of Southeast Asian Nation (ASEAN) countries. ASEAN countries includes Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam, " acc.....»»
Avoiding the play-in
The NBA regular season ends on April 14, meaning only 20 days are left to determine which teams from the East and West will figure in the dreaded play-in tournament......»»