GOCC subsidies drop to P24 billion in April
Subsidies extended by the national government to state-owned corporations reached P23.9 billion in April, lower than the funding support provided in the same period last year, data from the Bureau of the Treasury showed......»»
Zelda, Mario movie boost Nintendo profits
Nintendo reported on Thursday a 52 percent jump in first-quarter net profits thanks to brisk sales of its latest "Zelda" game and the release of "The Super Mario Bros. Movie". Recording net income of 181 billion yen ($1.26 billion), the Japanese gaming giant left its net profit forecast for the full year to March 2024 unchanged at 340 billion yen. "The Legend of Zelda: Tears of the Kingdom" had a "good start" after its release in May, recording sales of 18.51 million units, Nintendo said in a statement. The title's success not only led to a "significant increase" in software unit sales, but also drove hardware sales, Nintendo added. The game featuring the exploits of Princess Zelda and the elf-like warrior Link has sold 125 million copies worldwide since its first edition in 1986. The rapid sales of Zelda outstripped this year's other blockbuster game release, "Hogwarts Legacy", based on the "Harry Potter" series, which took two weeks to register 12 million sales. The April release of "The Super Mario Bros. Movie" -- a joint project of Universal, Nintendo and Illumination studios -- proved to be another bonanza for the Kyoto-based firm. It was the year's first film to pass the global $1 billion mark at the box office. The film reignited interest among customers in the gaming series and generated "widespread positive effects" on everything from merchandise to smartphone apps, Nintendo said. Its premiere "positively impacted sales of 'Mario' related titles, with 'Mario Kart 8 Deluxe' recording sales of 1.67 million units (for cumulative sales of 55.46 million units)", the company said. Initially "it was said that the performance of the film would have nothing to do with Nintendo’s earnings, but it actually boosted sales of Switch consoles", Hideki Yasuda, an analyst at Toyo Securities, told AFP ahead of Thursday's results. All in all, hardware sales increased 13.9 percent on-year to 3.91 million units, and software sales increased 26.1 percent to 52.21 million units. Nintendo's April-June results were also buoyed by a weaker yen, which "inflated repatriated sales", Yasuda said. The post Zelda, Mario movie boost Nintendo profits appeared first on Daily Tribune......»»
Microsoft, Google beat earnings expectations amid AI frenzy
Tech titans Google and Microsoft announced better-than-expected earnings on Tuesday as the frenzy over artificial intelligence stokes investor excitement and breathes new life into the sector. The release of ChatGPT last year landed as technology giants were embarking on major layoffs and cost-cutting plans, with share prices hammered after flying high during the coronavirus pandemic. For the second consecutive quarter, Microsoft has more than reversed the trend, seeing profits and sales soaring to the highest levels ever for the 48-year-old company co-founded by Bill Gates. An earnings statement reported that net profit for Microsoft was $20.1 billion in the April to June period, up 20 percent year-on-year and above expectations. The company posted $56.2 billion in sales, which also beat expectations, though the growth slowed from the previous quarter. And even though its share price slipped in after-hours trading, the Windows-maker remains the world's second most valuable company after Apple, with a market capitalization of $2.6 trillion. Once again, business in the latest quarter was driven by the cloud, which relies heavily on artificial intelligence and accounts for more than half of the company's sales. Cloud sales grew by 21 percent year-on-year. Microsoft shares lifted off last week when the company said it would charge $30 extra per user to turbocharge its Microsoft 365 product -- which includes Word, Excel and Teams -- with AI powers. "Every customer I speak with is asking not only how, but how fast they can apply next generation AI to address the biggest opportunities and challenges they face and to do so safely and responsibly," said Microsoft CEO Satya Nadella. Google parent Alphabet on Tuesday also reported profits that beat market forecasts as digital advertising revenue revived and its cloud business grew. The search engine giant reported net income of $18.7 billion on revenue of $74.6 billion in the recently ended quarter. "There's exciting momentum across our products and the company, which drove strong results this quarter," Alphabet chief executive Sundar Pichai said in an earnings release. Alphabet shares jumped more than six percent to $129.57 in after-market trades following the results. Microsoft saw its share price slip more than three percent to $337.99 as earnings showed it will take a bit of time and investment to fulfill its AI visions. "I think people got overly excited by AI, but now the reality is that it is not going to be instant," said independent analyst Rob Enderle of Enderle Group. "We are talking a few years before the full benefit starts to materialize." Brin is back While the latest talk has surrounded AI, what matters most for Google earnings currently is digital advertising -- where it gets the bulk of its revenue. The company said that advertising revenue hit $58.1 billion, which outshined analysts' expectations of $57.45 billion. Google is also a player in the cloud computing industry, where revenue came in at $8 billion, compared with $6.3 billion the unit took in during the same period a year earlier. "Our continued leadership in AI and our excellence in engineering and innovation are driving the next evolution of Search, and improving all our services," Pichai said. Google has played a close second to the partnership between Microsoft and OpenAI in rolling out its AI products following the release of ChatGPT. The company has largely been seen as playing catch up with Microsoft, with questions over whether the mighty Google search engine will withstand developments in AI. Microsoft was quick to beef up its Bing search engine with AI powers, but Google's search has yet to see a real threat to its dominance -- which remains about 90 percent of the market worldwide. Google, though not as dramatically as Microsoft, has seen its share price rise steeply in 2023 as investors expect AI to generate new revenue and open new markets. According to The Wall Street Journal, Google co-founder Sergey Brin is back at the company headquarters in California helping teams develop even more AI products. He and co-founder Larry Page stepped down from active roles at Google in 2019 when Pichai was chosen to replace them as chief executive. The post Microsoft, Google beat earnings expectations amid AI frenzy appeared first on Daily Tribune......»»
Microsoft profits soar, key cloud business slows
Microsoft's quarterly profits soared, the company said Tuesday, as its big push into artificial intelligence seemed to be bearing fruit but growth in its key cloud computing business slowed. An earnings statement reported that net profit for Microsoft was $20.1 billion in the April to June period, up 20 percent year-on-year and above expectations. The company posted $56.2 billion in sales for the quarter, which also beat expectations. Even though its share price slipped in after-hours trading, the 48-year-old tech titan remains the world's second most valuable company after Apple, with a market capitalization of $2.6 trillion. Microsoft shares had lifted off last week when the company said it would charge $30 extra per user to turbocharge its Microsoft 365 product -- which includes Word, Excel, and Teams -- with AI powers. This was an extra boost to a stellar year for Microsoft, whose big gamble on AI has so far been rewarded with a share price hike of about 45 percent this year. The heart of the company's activity is the Azure cloud service, which competes with Amazon's AWS and Google Cloud to offer businesses their computing needs. Demand for cloud computing slowed after a historic surge during the pandemic, and Microsoft and its rivals hope that the extra computing demands needed for AI will revive sales. The tech giant said Azure and other cloud services saw revenue growth of 26 percent year-over-year, down slightly from the previous quarter. Microsoft began 2023 with an announcement that it had entered into a close relationship with OpenAI, the company behind ChatGPT. The Redmond, Washington-based company swiftly integrated ChatGPT's powers into its Bing search engine, breathing new life into a product that has been unable to compete with Google. Microsoft has also pressed on with its big move to expand beyond its popular Xbox video game console by buying Activision Blizzard for $75 billion. The deal has faced major regulatory scrutiny over competition concerns, but after an effort by US authorities to block the deal failed in court, the move looks likely to succeed. The post Microsoft profits soar, key cloud business slows appeared first on Daily Tribune......»»
High-impact infras feed optimism
During the first State of the Nation Address or SoNA, a year ago, President Ferdinand Marcos Jr. told his audience made up mostly of legislators that the country’s condition is ripe for a growth revival despite the lingering challenges from the pandemic and the creeping high inflation. Marcos recognized that Filipinos have faced formidable challenges over the past two years and are ready to recover. Despite their ordeal, he commended their resilience and determination to endure and overcome the trials they are confronting. “We have assembled the best Filipino minds to help navigate us through this global crisis that we are facing. We will endure,” Marcos said. “Let our Filipino spirit remain undimmed. I know this in my mind, in my heart, in my very soul that the state of the nation is sound,” Marcos added. Infra spending to be sustained According to Marcos, expenditures for 2022 to 2023 will be sustained at a level exceeding 20 percent of the country’s gross domestic product, equivalent to P4.955 trillion and P5.086 trillion, respectively, to ensure the ongoing execution of essential priority programs. Moreover, he stated that disbursements will rise from P5.402 trillion, representing 20.7 percent of gross domestic product in 2024, to P7.712 trillion or 20.6 percent of GDP by 2028. “Expenditure priorities will be realigned, and spending efficiency will be improved to immediately address the economic scarring arising from the effects of Covid-19 and also to prepare for future shocks,” Marcos said. As of December 2022, the national government’s expenditure amounted to P5.16 trillion, representing 23.4 percent of the country’s GDP. By April 2023, the reported disbursements reached P1.46 trillion or 19.5 percent of GDP, as BSP data mentioned. MIF as budget equalizer One week before delivering his second SoNA, Marcos approved the Maharlika Investment Fund, or MIF, bill which the Marcos government considered vital for economic development. The Department of Finance said the approval of the Philippines’ inaugural sovereign wealth fund, which will “complement the government’s existing mechanisms to finance priority projects,” signifies the administration’s dedication to pursuing its objectives for economic expansion. Fiscal management, tax reforms In his SONA last year, Marcos announced that the government would implement tax administration reforms to boost revenue collection. “We will implement sound fiscal management. Tax administration reforms will be in place to increase revenue collection,” Marcos said. He added that the government will adjust the country’s tax system to catch up with the rapid development of the digital economy, including the imposition of value-added tax on digital service providers. Marcos also pointed out that the initial revenue impact will be around P11.7 billion in 2023 alone, adding that the government would simplify the tax compliance procedures to promote ease of paying taxes. Data from the Bangko Sentral ng Pilipinas showed that tax revenues reached P1.12 billion as of April 2023, representing approximately 87.9 percent of total revenues. The post High-impact infras feed optimism appeared first on Daily Tribune......»»
Microsoft and Activision add time to seal gaming deal
Microsoft and video gaming giant Activision Blizzard on Wednesday agreed to give themselves more time to complete a blockbuster transaction that still needs a sign off from UK regulators who had earlier rejected the deal. The two companies had previously set 18 July as the cut off point to finalize the $75 billion deal for Microsoft to acquire Activision, which now gets pushed by three months to 18 October. In return, Microsoft agreed to pay Activision an increased break-up fee in case either side walks away from the deal that could reach as high as $4.5 billion, a filing showed. Both sides said they remained firmly committed to the deal and were emboldened by a major victory in a US court which rejected an attempt by the Federal Trade Commission to squash the sale. "The recent decision in the US and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming," tweeted Lulu Cheng Meservey, Activision Blizzard's head of corporate affairs. Microsoft President Brad Smith said the extension gave "ample time" to close the sale and that he was "confident about our prospects for getting this deal across the finish line." The acquisition of Activision by Microsoft will create the world's third biggest video-gaming giant and has faced significant scrutiny by antitrust regulators. The companies made substantial commitments to regulators in the European Union and other antitrust authorities in order to win their approval. These answered concerns that Microsoft would bar their rivals access to some of Activision's most popular games, including Call of Duty, one of the world's most popular gaming titles. In April, the UK rejected the deal over its threat to the still developing cloud gaming sector, but agreed to take another look after the FTC's defeat in a US court. The post Microsoft and Activision add time to seal gaming deal appeared first on Daily Tribune......»»
IOU appetite remains high
The Bureau of the Treasury, or BTR, on Monday fully awarded bids for the government’s key Treasury bills. The 91-, 182-, and 364-day T-bills fetched average rates of 5.884 percent, 6.095 percent and 6.226 percent, all lower than previous auction results. Last week, the average rates for the 91-,182-, and 364-day T-bills settled at 5.973 percent, 6.266 percent, and 6.339 percent, respectively. The auction was nearly three times oversubscribed with total bids reaching P44.4 billion. The BTr raised the full program of P15.0 billion for the auction. In a comment, Rizal Commercial Banking Corporation chief economist Michael Ricafort said Treasury bill auction yields corrected lower week-on-week. Yields on downtrend “This is similar to the week-on-week downward correction in PHP Bloomberg Valuation Service yields after US Treasury yields also corrected lower after better US inflation data at a new 2-year low of 3 percent in June 2023, from 4 percent in the previous month and nearing the Fed’s target of 2 percent,” Ricafort said. “The lower T-bill auction yields could have also been supported by the strongest peso exchange rate versus the US dollar in more than three months recently, thereby could reduce import prices and overall inflation that could still ease further due to higher base effects,” he added. On 13 July, the peso closed at 54.51 to a US dollar, its best performance since 5 April. The post IOU appetite remains high appeared first on Daily Tribune......»»
OFW monies reach $2.78B
Cash remittances coursed through banks increased in May following the growth in receipts from workers abroad. Data from the Bangko Sentral ng Pilipinas on Monday showed that overseas Filipino remittances reached $2.78 billion in May 2023, higher by 2.9 percent than the $2.70 billion registered in the same month last year. “The expansion in cash remittances in May 2023 was due to the growth in receipts from land- and sea-based workers,” BSP said in a statement. Consequently, personal remittances for the first five months of the year grew by 3.1 percent to $14.46 billion, from $14.02 billion posted in the comparable period in 2022. On a year-to-date basis, cash remittances reached $12.98 billion, 3.1 percent higher than the year-ago level of $12.59 billion. “The growth in cash remittances from the United States, Singapore, and Saudi Arabia contributed mainly to the increase in remittances in the first five months of 2023,” BSP said. “Meanwhile, in terms of country sources, the US posted the highest share of overall remittances during the period, followed by Singapore, Saudi Arabia and Japan,” BSP added. In an emailed commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the continued growth in the year-on-year overseas Filipino remittances might have to do with increased holiday-related spending since the Holy Week in April 2023. “More people travel to go back to their respective hometowns in the provinces for vacations, also during the school break (June to July), spend for gatherings/reunions, as well as finance vacations locally or overseas,” Ricafort said. He added that relatively higher inflation also required sending more money to families and dependents in the Philippines. Ricafort said that further reopening the economy towards greater normalcy also led to increased spending with some pent-up demand or revenge spending by OFW families and dependents that were partly financed with the increased OFW remittances. Meanwhile, President Ferdinand Marcos Jr. on Monday encouraged overseas Filipinos to return to the Philippines, citing the “great many opportunities” for them here. During the courtesy call of 2023 Very Important Pinoy Tour participants in Malacañang, Marcos encouraged overseas Filipinos to come home and bring their children back to the Philippines so that they could learn about Filipino culture. “There are a great many opportunities for you and for the country as we try to transform the economy,” Marcos said. “I encourage you to come back and see what is happening in the Philippines,” he added. He also praised the contributions of overseas Filipinos to the Philippines, saying that they were “practically parts of their families.” “In every part of the societies that we Filipinos have decided to go to, we have made a very good name for ourselves,” Marcos said. “And for that, we thank our Filipino brothers and sisters who live abroad and continue to make the name of the Philippines shine.” Marcos added that Filipinos worldwide have become and continue to become an essential part of Philippine society and of the places where they decided to live and work. Per its website, the VIP Tour is led by the Department of Foreign Affairs in collaboration with the Department of Tourism and Rajah Tours. The current year’s travel plan blends the finest attractions of Metropolitan Manila, Iloilo and Boracay, offering participants a thrilling and educational vacation experience. The post OFW monies reach $2.78B appeared first on Daily Tribune......»»
Remittances reach P2.78B, rise by 2.9%
PAMPANGA – Cash remittances coursed through banks increased in May following the growth in receipts from workers abroad. Data from Bangko Sentral ng Pilipinas showed on Monday that overseas Filipino remittances reached $2.78 billion in May 2023, higher by 2.9 percent than the $2.70 billion registered in the same month last year. "The expansion in cash remittances in May 2023 was due to the growth in receipts from land- and sea-based workers," BSP said in a statement. Consequently, personal remittances for the first five months of the year grew by 3.1 percent to $14.46 billion, from $14.02 billion posted in the comparable period in 2022. On a year-to-date basis, cash remittances reached $12.98 billion, 3.1 percent higher than the year-ago level of $12.59 billion. "The growth in cash remittances from the United States, Singapore, and Saudi Arabia contributed mainly to the increase in remittances in the first five months of 2023," BSP said. "Meanwhile, in terms of country sources, the U.S. posted the highest share of overall remittances during the period, followed by Singapore, Saudi Arabia, and Japan," BSP added. In an emailed commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the continued growth in the year-on-year overseas Filipino remittances growth might have to do with increased OFW remittances sent back home in May 2023 in time to finance holiday-related spending continued since the Holy Week in April 2023. "More people travel to go back to their respective hometowns in the provinces for vacations, also during the school break (June to July), spend for gatherings/reunions, as well as finance vacations locally or overseas," Ricafort said. He added that relatively higher inflation also required sending more overseas Filipino remittances to families and dependents in the Philippines. Ricafort said further reopening the economy towards greater normalcy also led to increased spending with some pent-up demand or even some revenge spending by OFW families and dependents locally that are partly financed by increased sending OFW remittances. The post Remittances reach P2.78B, rise by 2.9% appeared first on Daily Tribune......»»
5-month debts breach P1T
Gross financing of the national government had reached the P1-trillion threshold in the first five months of the year due to higher domestic borrowings, data from the Bureau of the Treasury showed over the weekend. From January to May 2022, actual gross financing hit P1.17 trillion as gross domestic borrowings amounted to P912.577 billion, while external debts reached P343.874 billion. Retail Treasury bonds worth P283.763 billion and fixed-rate bonds worth P561.150 billion were both issued to raise funds from domestic sources. Project loans totaling P37.872 billion, program loans of P142.395 billion, and global bonds comprising P163.607 billion made up the entire amount of external funding. Meanwhile, the Marcos administration’s actual gross financing for May 2023 increased month-on-month by 13.13 percent to higher domestic borrowings. Higher May borrowings The same data from BTr revealed that the government’s gross borrowings in May reached P141.671 billion from April’s P125.230 billion. Local borrowings in May rose 37.10 percent month-on-month to P131.792 billion with the issuance of treasury bills worth P31.792 billion and fixed-rate treasury bonds worth P100.000 billion. Gross loans from the international donor community reached P14.991 billion, or 55.62 percent lower than P33.779 billion last month. The gross external financing is composed of project loans worth P5.893 billion and program loans worth P9.098 billion. The post 5-month debts breach P1T appeared first on Daily Tribune......»»
Highly-leveraged SMGP
San Miguel Corp. predictably won the Court of Appeals decision recently, reversing the Energy Regulatory Commission in its rejection of the petition of its energy arm San Miguel Global Power Corp. or SMGP’s plea for a temporary rate increase. SMGP claims P15 billion in losses from its units South Premiere Power Corp. and San Miguel Energy Corp. as a result of high fuel costs and the supply restrictions from the Malampaya natural gas project. It turns out that SMGP direly needs to be profitable since it is deep in borrowings for its projects. Data supplied to Daily Tribune by the think tank Center for Energy, Ecology and Development showed SMGP has obtained several financing arrangements, such as long-term debts and issuance of Senior Perpetual Capital Securities or SPCS and other debt instruments to facilitate the acquisition of coal-fired power plants and investments in new power plants. For the construction and expansion of coal plants, SMGP has secured the following financial transactions: January 2018, drawing P2 billion from the P44-billion Omnibus Loan and Security Agreement to finance the construction of two 150-megawatt Limay coal-fired power plants; March 2018, $700-million floating interest term loan, $400-million short-term bridge financing loans, $400-million floating interest term loan, and $650-million Redeemable Perpetual Securities for the acquisition of Masinloc Group including two 315 MW Masinloc power plant and the construction of Unit 3 and 10 MW battery energy storage project; January 2019, $35 million from its $525 million Omnibus Expansion Facility Agreement to finance the ongoing construction of the 300 MW expansion of Masinloc Power Plant; November 2019, drawing of an additional $40 million from $525 million OEFA to finance the additional 300 MW Masinloc Power Plant; July 2019, drawing of P978 million from a P2.1 billion 12-year Omnibus Loan and Security Agreement with a syndicate of local banks for the financing of the construction of the Davao Greenfield Power Plant; March 2020, drawing of an additional $43 million to finance the construction of an added 335 MW Unit-3 Masinloc Power Plant; and July 2022, allocation of up to P20 billion from the sale of P30 billion fixed rate bond with an oversubscription option of up to P10 billion. As for its liquefied natural gas-related projects, SMGP has issued debt certificates in the past three years including: October 2020 — $400 million worth of SPCS issued for 100 percent with an initial rate of 7 percent per annum. In-principle approval for the listing and quotation from Singapore Exchange Trading Ltd. December 2020 — $350 million worth of SPCS issued for 102.457 percent with an initial rate of 7 percent, and listed on the SETL; April 2021 — availment of $50 million from the October 2020 loan facility agreement for capital expenditures related to the Ilijan gas-fired power plant and its expansion, financing of LNG importation, and storage facilities, among others; June 2021 — $600 million worth of SPCS issued for 100 percent with an initial rate of 5.45 percent per annum, and listed on the SETL; September 2021 — $150 million worth of SPCS issued for 100.125 percent with an initial rate of 5.45 percent per annum, and listed on the SETL; and July 2022 — allocation of up to P24.5 billion from the sale of P30 billion fixed rate bonds with an oversubscription option of up to P10 billion. In April 2021, SMGP also availed of its $50 million from its term loan facility with a foreign bank executed in October 2020. The proceeds of this loan are intended for the payment of capital expenditures of the Ilijan plant, funding of liquefied natural gas import, storage, and distribution facilities, pre-operating and operating working capital requirements for Battery Energy Storage System projects, and transaction-related fees, costs, and expenses of the facility. The post Highly-leveraged SMGP appeared first on Daily Tribune......»»
Gov’t financing surpasses P1-trillion mark from Jan-May
National government financing has already reached the P1-trillion threshold in the first five months of the year due to higher domestic borrowings, data from the Bureau of the Treasury showed. From January to May 2022, actual net financing hit P1.168 trillion, with net domestic borrowings amounting to P880.315 billion and net external financing reaching P287.364 billion. Retail Treasury bonds worth P283.763 billion and fixed-rate bonds worth P561.150 billion were both issued to raise funds from domestic sources. Project loans totaling P37.872 billion, program loans of P142.395 billion, and global bonds comprising P163.607 billion made up the entire amount of external funding. Meanwhile, the Marcos administration's actual financing for May 2023 increased month-on-month by 13.13 percent to higher domestic borrowings. The same data from BTr revealed that government borrowings in May reached P141.671 billion from April's P125.230 billion. Local borrowings in May rose 37.10 percent month-on-month to P131.792 billion with the issuance of treasury bills worth P31.792 billion and fixed-rate treasury bonds worth P100 billion. Gross loans from the international donor community reached P14.991 billion, or 55.62 percent lower than P33.779 billion last month. The gross external financing is composed of project loans worth P5.893 billion and program loans worth P9.098 billion. The post Gov’t financing surpasses P1-trillion mark from Jan-May appeared first on Daily Tribune......»»
Monetary Board approves government’s $2.73-B borrowings
The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, approved the government's borrowing in the second quarter to fund various railway projects across the country. In a statement on Friday, the BSP said it approved the government's borrowing of $2.73 billion in the second quarter, which is 23 percent lower than the borrowing amount during the same period in 2022, which was $3.54 billion. “These are all borrowings by the Republic of the Philippines consisting of three project loans from the Japan International Cooperation Agency. These borrowings will fund various railway projects of the NG (national government),” the BSP explained. For comparison, the BSP in April reported $5.56 billion in public sector foreign borrowings in the first quarter, up 16 percent from last year's $4.8 billion. Public sector borrowings comprise a combination of project loans and program loans. These borrowings also involve the issuance of sovereign bonds to fulfill the national government's general financing needs, which include addressing the impacts of the COVID-19 pandemic and funding infrastructure-related projects. Most of the country's borrowings primarily originate from domestic creditors to protect the national government from the unpredictable fluctuations of exchange rates and other factors. Foreign loans necessitate the approval of the BSP through its Monetary Board before the national government can guarantee them. According to data from the BSP, the country's foreign debt reached a record high of $118.81 billion in the first quarter. To ensure that the level of foreign debt remains within manageable limits, the BSP is responsible for reviewing and approving all public sector or government foreign borrowings following Section 20, Article VII of the 1987 Philippine Constitution. The BSP has emphasized its commitment to promoting the prudent utilization of resources and ensuring that the country's external debt requirements are maintained at manageable levels to support external debt sustainability. The post Monetary Board approves government’s $2.73-B borrowings appeared first on Daily Tribune......»»
Philippines FDI net inflows dip by 14.1 pct in April
MANILA, July 10 (Xinhua) -- Foreign direct investment (FDI) that flowed into the Philippines dropped by 14.1 percent in April 2023 to reach 876 million U.S. dollars from the 1 billion dollars net inflows in April 2022, the Philippine central bank said on Monday. The Bangko Sentral ng Pilipinas (BSP) attributed the decline in FDI net inflows in April to "concerns over slowing economic growth and relatively high i.....»»
Drought scuppers salmon fishing season in California
Gazing out at San Francisco harbor from her wooden fishing boat, Sarah Bates looks glum. In happier times, she would head out to sea every morning. But for much of this year, she has remained hopelessly docked, due to a ban on salmon fishing as a result of California's drought. "Salmon is my main fishery and it's 90 per cent of my income," says the 46-year-old. In force since April along the entire coast of the Golden State, and parts of neighboring Oregon, the moratorium will last until the end of the salmon fishing season in September. It was brought in as the number of salmon expected to return to the region's rivers has plummeted close to historic lows. The decades-long drought gripping the American West, aggravated by climate change, has seen the levels of California's rivers drop, and their waters grow warmer. With many dams already constructed on these waterways, these inhospitable conditions mean salmon are struggling to swim upstream to reproduce, and their offspring often die before reaching the ocean. The ban is a significant blow to California, where salmon fishing generates $1.4 billion per year, and supports 23,000 jobs, according to the Golden State Salmon Association. On the San Francisco harbor front, several restaurants have been forced to import salmon from further afield, including Canada, in order to keep the popular fish on their menus. "Salmon is king... that's what people want," says Craig Hanson, a 60-year-old chartered boat operator specializing in sport fishing. "They're also a very spectacular fish to catch... the salmon is going to fight you to the end." 'Marine heat waves' In summers past, Hanson would take his boat out every day. This season, the sailor weighs anchor only four times a week He blames a lack of enthusiasm among customers for fishing halibut or striped bass. Despite the loss of income, Hanson approves of the ban if it helps the future of the industry, and is optimistic that salmon can rebound soon thanks to recent months of heavy rain and snow. Yet many fishermen fear another ban next year. "The Chinook salmon that are fished here in California typically have a three- or four-year life cycle," explains Nate Mantua, a scientist with the National Oceanic and Atmospheric Administration (NOAA). "So when things happen to them in freshwater, as eggs or juveniles, we see it impacting the fishery two or three years later." The decline in salmon numbers has been precipitous for at least a decade. Low river water levels -- which authorities have tried to work around, by trucking baby salmon down to the ocean -- are only part of the problem. Between 2014 and 2016, the Pacific reached temperatures never before seen off the west coast of North America. "Marine heat waves" created "really poor growth and survival conditions for salmon", says Mantua. Deprived of cold ocean currents that bring essential nutrients, the fish fell prey to other hungry species. "It's not just a California problem. It's really the entire Pacific, except for a few exceptions," such as certain Alaskan species, he adds. 'Climate shocks' But in California, "our fish were already predisposed to being vulnerable to any kind of climate shocks," says Mantua. This is because the state -- with a giant 40-million population, and a sprawling agricultural sector essential for feeding the United States -- has relentlessly developed its rivers, in order to support its cities and farms. Due to countless dams and canals, salmon have lost 80 percent of the habitats in which they can spawn. Water management, and the priority afforded to farmers in central California, is now a major source of grievance for fishermen. In San Francisco, many are calling for water to be re-diverted into rivers, rather than supplying producers of water-intensive crops like almonds, pistachios and walnuts -- which are often grown for export. "When it comes down to it, water is more important for the fish than it is for nuts," says Ben Zeiger, a 23-year-old deckhand working on a local sport-fishing boat. Salmon fishers are waiting to receive financial compensation from federal authorities for this year's fishing ban. But their priority is efforts to improve salmon habitats. Along northern California's Klamath River, a giant project has just begun to demolish four hydroelectric dams, potentially reopening 400 miles of river for migratory fish. "If we don't fix the water policy, we're going to be here again" in future drought years, says Bates, back on the wharf. "Climate change is happening. And it's happening faster than I think any of us expected." The post Drought scuppers salmon fishing season in California appeared first on Daily Tribune......»»
Phl, Mexico mark 70 years of diplomatic ties
Mexico and the Philippines have agreed to expand their commercial and cultural cooperation following the coronavirus outbreak as the two countries commemorate their 70th anniversary of diplomatic relations. The agreement came after Mexico's Ambassador-designate, Daniel Hernandez Joseph, presented his credentials to President Ferdinand R. Marcos Jr. in Malacañang on Monday. During the presentation of credentials, Marcos underscored that the new economy calls for a new workforce with different skills than what countries traditionally depended upon. "Much of the work we are doing to transform the economy is to transform the workforce so that the daily technologies are understood. It extends in every field," he said. Marcos said the pandemic has taught people how to do business without physical travel. "So I think that changes the relationship and that changes the possibilities, the potentials that we should explore," he said. The President also expressed gratitude to Mexico for taking care of Filipinos there, stressing there is a strong Filipino community in that country, which is now very much part of Mexican society. Mexico's Ambassador-designate, Daniel Hernandez Joseph, for his part, said that there is cultural closeness to share between the Philippines and Mexico because of the two countries' history. Mexico and the Philippines are connectors between Asia and America, said Hernandez Joseph, adding, "(a)nd through that role, there is so much we can do in trade, in culture, in science." Hernandez Joseph added that Mexico's national university made an offering this year in Filipino studies. "It's just beginning, which again like I said, opens new opportunities for furthering the knowledge and exchange of each other today not only in history but who we are together and what we can do together today," he said. The Philippines opened its embassy in Mexico City the same year it established diplomatic relations with Mexico on 14 April 1953. In the same year, the Mexican embassy in Manila was established. The illumination of national landmarks and structures in both nations was done on 14 April to mark the 70th anniversary of the beginning of bilateral relations between the Philippines and Mexico. Data from February 2023 show that 1,206 Filipinos reside in Mexico. They are primarily skilled artisans, technologists, associate professionals and other business experts. Total commerce between the Philippines and Mexico has grown since 2020, reaching $1.1 billion last year. Mexico is the Philippines' 23rd-largest trading partner. Goods from the nation that are being promoted to Mexico include furniture and furnishings, clothing, footwear, food products (desiccated coconuts, vegetable saps, and extracts, coconut palm, etc.), machinery/mechanical appliances and auto parts, electrical/ electronic equipment and food. Mexico has ongoing requests for access to the Philippine market for grapes, avocados, citrus, and bovine and pork meat. The post Phl, Mexico mark 70 years of diplomatic ties appeared first on Daily Tribune......»»
Angara says Frasco deserves a chance after ‘Love the Philippines’ fiasco
Senators have differing opinions on the controversies surrounding the newly launched “Love the Philippines’ campaign by the Department of Tourism. Senator Sonny Angara said the recent video mess “should not diminish” the accomplishments made by Tourism Secretary Christina Garcia Frasco in promoting the country to the world. Angara also commended Frasco for swiftly terminating the DoT's contract with advertising agency, DDB Philippines, for more promotional videos. "Clearly there were issues with what was presented by the advertising agency, but what is important is that Sec. Frasco acted immediately to address the issue and ensured that no public funds were wasted for this purpose," he said. Angara added that Frasco should be given a chance to redeem herself, citing the latter’s efforts to revive the country’s tourism industry hit hard by the Covid-19 pandemic. "What the DOT has done over the past two years following the pandemic has been remarkable and with Sec. Frasco leading the charge in declaring the Philippines open for tourists, I am confident that Philippine tourism will be able to reach new heights and the world will see the many reasons to Love the Philippines,” he said. According to Angara, the DoT recorded over 2 million international visitor arrivals in the country from January to the middle of May this year,—which already breached the department’s 1.7 million visitor target for the year. For the period of January to April, the DOT recorded P168.2 billion in inbound visitor receipts, which represents a 782 percent increase from the P19.1 billion in tourism revenues generated over the same period last year. Under the leadership of Sec. Frasco, Angara noted that the Philippines has received six nominations in the World Travel Awards Asia namely: Asia's Leading Island Destination; Asia's Leading Beach Destination; Asia's Leading Dive Destination; Intramuros as Asia's Leading Tourist Attraction; Cebu as Asia's Leading Wedding Destination; and the DoT as Asia's Leading Tourist Board. Angara also cited the move of the DoT to develop the Philippines as a health and wellness tourism hub—an idea that he has been pushing for some time already. The Philippines was also recently elected as vice president of the 25th General Assembly of the United Nations World Tourism Organization and chairman of the Commission for East Asia and the Pacific. Meanwhile, Senator Jinggoy Estrada lauded the DoT’s move against the advertising agency saying that its prompt response and responsible handling of the situation deserves recognition. “Mistakes happen but it is how we respond and rectify them that truly matters…The DOT exemplified accountability and commitment to learning from this incident,” he said. Estrada believes that the DoT’s acknowledgment of the gaffe and taking immediate steps to rectify the situation “demonstrated” the government’s dedication to maintaining the integrity of our tourism industry. “Understandably, any campaign of this magnitude may face criticisms and differing opinions. Yet, how Sec. Frasco's handling of the issues confronting the DoT is both admirable and necessary,” said Estrada. “It is through proactive measures that we can continue to promote the Philippines as a premier tourist destination while ensuring accuracy and responsible marketing practices," he added. The post Angara says Frasco deserves a chance after ‘Love the Philippines’ fiasco appeared first on Daily Tribune......»»
National debt soars to P14 trillion
The Philippines’ debt soared to more than P14 billion in May as the government borrows more while the Philippine peso weakens, the state bureau said on Tuesday. Data from the Bureau of Treasury showed that the national government's total outstanding debt stood at P14.10 trillion as of end-May 2023. The level of debt grew by P185.40 billion or 1.3 percent from P13.9 trillion last April 2023. BTr attributed the increase to "the net issuance of domestic and external debt and the depreciation of the local currency against the US dollar." Of the total debt stock, 32.0 percent was sourced externally while 68.0 percent were domestic borrowings. NG domestic debt amounted to P9.59 trillion, P130.67 billion or 1.4 percent higher compared to the end-April 2023 level. For the month, the increment to domestic debt was primarily accounted for by the net issuance of government securities amounting to P129.11 billion. Moreover, the impact of peso depreciation against the US dollar padded the value of onshore foreign currency-denominated securities by P1.56 billion. Year-to-Date, domestic debt has increased by P380.13 billion or 4.1 percent. NG’s external debt amounted to P4.51 trillion, P54.73 billion or 1.2 percent higher from the previous month. "External debt was mainly driven by the net availment of external loans amounting to P10.05 billion and the impact of local-currency depreciation against the US dollar amounting to P59.70 billion," BTr said. On the other hand, third-currency adjustments against the US dollar tempered the value of foreign currency debt by P15.02 billion. NG external debt has increased by P297.56 billion or 7.1 percent from the end-December 2022 level. Total NG guaranteed obligations decreased by P0.98 billion or 0.3 percent month-on-month to P379.71 billion as of end-May 2023. The decline in guaranteed debt was attributed to the net repayment of external guarantees amounting to P6.70 billion and third-currency adjustments amounting to P0.91 billion. These were mostly offset by the net issuance of domestic guarantees amounting to P4.16 and the impact of local currency depreciation relative to the US dollar amounting to P2.47 billion. From the end-December 2022 level, NG guaranteed debt has decreased by P19.33 billion or 4.8 percent. The post National debt soars to P14 trillion appeared first on Daily Tribune......»»
Smaller May gov’t subsidies
Subsidies to government-owned and -controlled corporations or GOCCs declined year-on-year in May, data from the Bureau of the Treasury or BTr showed over the weekend. Budgetary support to GOCCs slightly declined by 7.27 percent to P7.388 billion in May from P7.968 billion a year ago. Month-on-month, subsidies declined by 17.52 percent from P8.958 billion in April. The government provides subsidies to GOCCs to help cover their operational expenses. The bulk, or 74.9 percent of the subsidies in May, went to six major non-financial government corporations. Around 22.24 percent went to other government corporations, while the rest went to government financial institutions. The data broken down showed about 57.17 percent of the total subsidies went to the National Irrigation Administration at P3.88 billion for May. However, NIA’s subsidy declined 32.54 percent from the P6.262 billion it received in the same period last year. NFA subsidy topnotcher The National Food Authority secured the second-highest subsidy at P849 million, while the National Housing Authority came in third at P363 million. Other top subsidy recipients during the month include the Philippine Fisheries Development Authority at P319 million and the Philippine Heart Center at P271 million. The National Home Mortgage Finance Corporation or NHMFC also received P205 million worth of subsidy from the government. During the month, the government did not release subsidies to the Civil Aviation Authority of the Philippines, Philippine Crop Insurance Corporation, Philippine Health Insurance Corporation, Philippine Postal Corporation, Power Sector Assets and Liabilities Management Corp. and Small Business Corp. From January to May, budgetary support for major non-financial government corporations reached P25.154 billion, down 36.09 percent from P39.359 billion last year. The post Smaller May gov’t subsidies appeared first on Daily Tribune......»»
Subsidies to GOCCs declined 7.27% from last year
Subsidies to government-owned and -controlled corporations (GOCCs) declined year-on-year in May, data from the Bureau of the Treasury (BTr) showed over the weekend. Budgetary support to GOCCs slightly declined by 7.27 percent to P7.388 billion in May from P7.968 billion in the same month a year ago. Month on month, subsidies declined by 17.52 percent from P8.958 billion in April. The government provides subsidies to GOCCs to help cover their operational expenses. The bulk, or 74.9 percent of the subsidies in May, went to six major non-financial government corporations. Around 22.24 percent went to other government corporations, while the rest went to government financial institutions. Data broken down, about 57.17 percent of the total subsidies went to the National Irrigation Administration (NIA) at P3.88 billion for May. However, NIA's subsidy had a 32.54 percent decline from the P6.262 billion it received in the same period last year. The National Food Authority secured the second-highest subsidy at P849 million, while the National Housing Authority (NHA) came in third at P363 million. Other top subsidy recipients during the month include the Philippine Fisheries Development Authority (PFDA) at P319 million and the Philippine Heart Center (PHC) at P271 million. The National Home Mortgage Finance Corporation (NHMFC) also received P205 million worth of subsidy from the government. During the month, the government did not release subsidies to the Civil Aviation Authority of the Philippines (CAAP), Philippine Crop Insurance Corporation (PCIC), Philippine Health Insurance Corporation (PHIC), Philippine Postal Corporation (PPC), Power Sector Assets and Liabilities Management Corp. (PSALM), and Small Business Corp. (SBC). From January to May, budgetary support for major non-financial government corporations reached P25.154 billion, down 36.09 percent from P39.359 billion last year. Year-on-year, subsidies for other government corporations slipped by 26.16 percent to P10.51 billion from P16.455 billion in the same period last year. The post Subsidies to GOCCs declined 7.27% from last year appeared first on Daily Tribune......»»
Sharing success
Foreign Affairs Secretary Enrique Manalo was in India in June to discuss with his Indian counterpart Dr. S. Jaishankar the expanding scope of ties between the two countries. Here’s how the Philippines and India are working together to further strengthen their bilateral partnership. Defense Both democracies expressed keen interest to continue to enhance defense ties through the regular or upgraded official level interaction among defense agencies, opening of the resident Defense Attaché office in Manila, consideration of India’s offer for concessional Line of Credit to meet the Philippines’ defense requirements, acquisition of naval assets, and expansion of training and joint exercises on maritime security and disaster response. Maritime Emphasizing the utility of maritime -domain awareness, India and the Philippines called for the early operationalization of the Standard Operating Procedure for the White Shipping Agreement between the Indian Navy and the Philippines Coast Guard, looking forward to the signing of the memorandum of understanding on enhanced maritime cooperation between the Indian Coast Guard and Philippine Coast Guard. Law enforcement The ministers encouraged early negotiations for a bilateral mutual Legal Assistance Treaty on Criminal Matters and a treaty on transfer of sentenced persons. It was agreed that the first round of talks would be held in the Philippines in August 2023. Recognizing terrorism and transnational crimes as common security threats, they directed that the 2nd Joint Working Group on Counter-Terrorism meet in the Philippines in 2023 and discuss forging a memorandum of understanding on this end. Trade and investment There’s a satisfaction at the growing pace of bilateral trade, which had, for the first time, crossed the level of $3 billion in 2022 to 2023, and agreed to commence negotiations on a bilateral Preferential Trade Agreement. Manalo highlighted the growing engagement between businesses on both sides, including nearly 30 business-to-business meetings held over the past three years in different sectors. Development The ministers positively noted the ratification of the Agreement on Indian Grant Assistance for Implementation of Quick Impact Projects in the Philippines. Manalo underlined India’s commitment to share its digital innovations for the benefit of local communities in the Philippines across sectors such as disaster resilience, health, water, environment protection and education. Health and pharmaceuticals Both sides agreed on an early meeting of the bilateral JWG on Health to devise concrete initiatives to expand cooperation. They welcomed the signing of a memorandum of agreement for cooperation in Ayurveda in April 2022. Tourism and civil aviation The ministers expressed satisfaction at the ratification of the Air Services Agreement signed in September 2021. They noted that this would enable the airlines of both countries to explore direct flight connectivity. Manalo welcomed the announcement of the Philippine government to introduce e-visa for Indian nationals and noted that India had already extended e-visa facility to the Philippines. Agriculture India conveyed Philippine interest in expanding collaboration on fisheries and marine culture and called for the convening of the Joint Working Group on Agriculture to discuss additional areas of agricultural cooperation. Financial technology The Philippines and India welcomed the signing of an MoU in June 2023 for the constitution of a Joint Working Group on Fintech, which would provide the institutional framework for cooperation on digitalization of payments, direct benefit transfer using National ID, and financial inclusion. Science and technology The ministers expressed satisfaction at the commencement of institutional exchanges between their respective science and technology departments, with the convening of the first Joint Science and Technology Committee meeting in July 2021. India is one of the Philippines’ priority foreign partners in science and technology. They noted that a new program of cooperation on science and tech (2023 to 2026) has been finalized. Space Both democracies welcomed the initiation of bilateral engagement on space through training and exchanges, leading to the first round of bilateral dialogue, held virtually, between the Philippine Space Agency and the Indian Space Research Organization/Department of Space earlier this month. They encouraged continued deliberations on the proposed MoU on Cooperation in the Peaceful Uses of Outer Space. The post Sharing success appeared first on Daily Tribune......»»