US hits Myanmar ministers, central bank chief with sanctions
The US Treasury slapped sanctions on 16 senior Myanmar officials and family members Monday, citing their support for the government's "violent and lethal attacks" against the country's pro-democracy movement......»»
Economists: 25-bps rate hike likely if inflation rises anew
Economists believe the Bangko Sentral ng Pilipinas might further raise its policy rate by 25 basis points to 6.75 percent next month if food supply issues and high global oil prices persist. Dan Roces, chief economist of Security Bank, said the BSP might make this decision at its meeting on 16 November to help temper inflation faster. “The higher policy interest rate is driven by mounting local inflation risks, attributed to supply chain disruptions and increasing global commodity prices, including the threat of crude price spikes brought about by tensions in the Middle East,” he told the Daily Tribune in a Viber message. Last Thursday, the central bank hiked its rate by 25 bps to 6.25 percent on an off-cycle period to arrest further inflation uptrend due to the aforementioned factors. Risks might linger Jun Neri, chief economist of Bank of the Philippine Islands, said these inflationary risks might linger until the government finds solutions to increase supply of rice, the main driver of re-accelerated inflation at 6.1 percent last month. While Neri said managing food supply is not the BSP’s responsibility, he agreed with the central bank that rate hikes can help slow inflation by restraining consumer spending. “The rate hike is a statement from the BSP that it is determined to bring inflation back to its target. Inflation expectations may shoot up further if the market doesn’t see any action from the BSP,” the economist said. Exacerbated by Israel-Hamas war “The risk of El Niño, as well as higher global crude oil prices recently among 11-month highs led to higher local fuel pump prices especially since July 2023. This could be exacerbated by the Israel-Hamas war that is still uncertain” Michael Ricafort, chief economist of Rizal Commercial Banking Corp., added. The post Economists: 25-bps rate hike likely if inflation rises anew appeared first on Daily Tribune......»»
BSP hikes rates6.5%, off-cycle
The Bangko Sentral ng Pilipinas on Thursday raised its policy rate on an off-cycle period to 6.5 percent from 6.25 percent to manage a likely inflation uptrend this year until July next year. The BSP has, thus far, raised its policy rate by 450 basis points after inflation peaked at 8.7 percent in January and re-accelerated again to 6.1 percent last month from 5.3 percent in August. The BSP move will increase borrowing costs, with new interest rates on the overnight deposit at 6 percent and lending facilities at 7 percent. BSP Governor Eli Remolona Jr. said the country’s inflation rate might settle at 4.7 percent next year, higher than the central bank’s previous target range of 2 percent to 4 percent for this year and 4.3 percent in the next. He added inflation might quicken further above 4.7 percent from July to March next year. “The balance of risks to the inflation outlook still leans significantly toward the upside, due mainly to the potential impact of higher transport charges, electricity rates, international oil prices, and minimum wage adjustments in areas outside the National Capital Region,” he explained. Limit spending With the higher interest rates, Remolona said consumers will likely limit their spending which will discourage businesses from raising prices. “The BSP’s Monetary Board recognized the need for this urgent monetary action to prevent supply-side price pressures from inducing additional second-round effects and further dislodging inflation expectations,” the BSP chief said. Remolona added the slow global economic recovery and effects of the weather disturbances from El Niño on food supply might also restrain consumption toward a moderated inflation. “Meanwhile, the effect of a weaker-than-expected global recovery as well as government measures to mitigate the effects of El Niño weather conditions could temper inflationary impulses,” he said. The BSP Monetary Board will again announce to the public on 16 November whether to change its policy rate in compliance with its normal cycle period happening every six weeks. However, Remolona already cautioned the public of likely controlled consumer spending in the medium term as the BSP expects to maintain high interest rates in the near future. Tighter settings “Looking ahead, the Monetary Board deems it necessary to keep monetary policy settings tighter for longer until inflationary expectations are better anchored and a sustained downward trend in inflation becomes evident,” he said. “We will consider another rate hike if things are worse than we thought,” Remolona continued. The BSP has raised its policy rate by 425 basis points after inflation peaked at 8.7 percent in January and re-accelerated again to 6.1 percent last month from 5.3 percent in August. The Philippine Statistics Authority attributed this to persisting higher food and fuel prices partly driven by global food trade restrictions and oil trade disruptions from the Russia-Ukraine war. Falls a little behind “In my view, I think we fell a little behind that’s the reason for this effort to catch up. We didn’t look closely enough at expectations,” Remolona said as he reflected on the BSP’s unchanged rate at its September 21 meeting. “One of them that was very striking was our consumer expectations survey which said about 92 percent think that in the next 12 months inflation will be above 4 percent, similar to expectations by firms,” the BSP chief continued. The post BSP hikes rates6.5%, off-cycle appeared first on Daily Tribune......»»
First relief convoy enters Gaza devastated by ‘nightmare’ war
The first aid trucks arrived in war-torn Gaza from Egypt on Saturday, bringing urgent humanitarian relief to the Hamas-controlled Palestinian enclave suffering what the UN chief labelled a "godawful nightmare". Israel has vowed to destroy Hamas after the Islamist militant group carried out the deadliest attack in the country's history on October 7. Hamas militants killed at least 1,400 people, mostly civilians who were shot, mutilated or burnt to death, and took more than 200 hostages, according to Israeli officials. Israel has retaliated with a relentless bombing campaign on Gaza that has killed more than 4,300 Palestinians, mainly civilians, according to the Hamas-run health ministry. An Israeli siege has cut food, water, electricity and fuel supplies to the densely populated and long-blockaded territory of 2.4 million people, sparking fears of a humanitarian catastrophe. AFP journalists on Saturday saw 20 trucks from the Egyptian Red Crescent, which is responsible for delivering aid from various UN agencies, pass through the Rafah border crossing from Egypt into Gaza. The crossing -- the only one into Gaza not controlled by Israel -- closed again after the trucks passed. The lorries had been waiting for days on the Egyptian side after Israel agreed to a request from its main ally the United States to allow aid to enter. UN chief Antonio Guterres warned Friday that the relief supplies were "the difference between life and death" for many Gazans, more than one million of whom have been displaced. "Much more" aid needs to be sent, he told a peace summit in Egypt on Saturday. US Secretary of State Antony Blinken welcomed the aid and urged "all parties" to keep the Rafah crossing open. But a Hamas spokesman said "even dozens" of such convoys could not meet Gaza's needs, especially as no fuel was being allowed in to help distribute the supplies to those in need. 'Reeling in pain' Tens of thousands of Israeli troops have deployed to the Gaza border ahead of an expected ground offensive that officials have pledged will begin "soon". As international tensions soar, Egyptian President Abdel Fattah al-Sisi was hosting a peace summit in Cairo on Saturday attended by regional and some Western leaders. "The time has come for action to end this godawful nightmare," Guterres told the summit, calling for a "humanitarian ceasefire". The region "is reeling in pain and one step from the precipice", he said. Guterres said "the grievances of the Palestinian people are legitimate and long" after "56 years of occupation with no end in sight". But he stressed that "nothing can justify the reprehensible assault by Hamas that terrorised Israeli civilians". "Those abhorrent attacks can never justify the collective punishment of the Palestinian people," he added. Egypt, historically a key mediator between Hamas and Israel, has urged "restraint" and the relaunch of the long-frozen peace process. But diplomatic efforts to end the violence have made little headway, without the participation of Israel and its enemy Iran, a supporter of Hamas and other armed groups. 'Sliver of hope' A full-blown Israeli ground offensive carries many risks, including to the hostages Hamas took and whose fate is shrouded in uncertainty. So the release of two Americans among the hostages -- mother and daughter Judith and Natalie Raanan -- offered a rare "sliver of hope", said Mirjana Spoljaric, president of the International Committee of the Red Cross. US President Joe Biden thanked Qatar, which hosts Hamas's political bureau, for its mediation in securing the release. He said he was working "around the clock" to win the return of other Americans being held. Natalie Raanan's half-brother Ben told the BBC he felt an "overwhelming sense of joy" at the release after "the most horrible of ordeals". Hamas said Egypt and Qatar had negotiated the release and that it was "working with all mediators to implement the movement's decision to close the civilian (hostage) file if appropriate security conditions allow". Traumatised families with loved ones missing in Gaza demanded more action. "We ask humanity to interfere and bring back all those young boys, young girls, mothers, babies," Assaf Shem Tov, whose nephew was abducted from a music festival where Hamas killed hundreds, said Friday. Devastation Almost half of Gaza's residents have been displaced, and at least 30 percent of all housing in the territory has been destroyed or damaged, the United Nations says. Thousands have taken refuge in a camp set up in the city of Khan Yunis in southern Gaza. Fadwa al-Najjar said she and her seven children walked for 10 hours to reach the camp, at some points breaking into a run as missiles struck around them. "We saw bodies and limbs torn off and we just started praying, thinking we were going to die," she told AFP. In Al-Zahra in central Gaza, Rami Abu Wazna was struggling to take in the destruction wreaked by Israeli missile strikes. "Even in my worst nightmares, I never thought this could be possible," he said. Israel's operation will take not "a day, nor a week, nor a month" and will result in "the end of Israel's responsibilities in the Gaza Strip", Defence Minister Yoav Gallant warned on Friday. Regional tensions flare In Gaza, retired general Omar Ashour said the destruction was "part of a clear plan for people to have no place left to live". "This will cause a second Nakba," he added, referring to the 760,000 Palestinians who were expelled from or fled their homes when Israel was created in 1948. The United States has moved two aircraft carriers into the eastern Mediterranean to deter Iran or Lebanon's Hezbollah, both Hamas allies, amid fears of a wider conflagration. Fire across Israel's border with Lebanon continued overnight, with one Israeli soldier killed, Israeli public radio said. The military said it hit Hezbollah targets after rocket and missile fire. Violence has also flared in the West Bank, where 84 Palestinians have been killed since October 7, according to the Palestinian health ministry. The post First relief convoy enters Gaza devastated by ‘nightmare’ war appeared first on Daily Tribune......»»
Hundreds dead in Israel-Gaza war as Hezbollah launches attacks
Israeli Prime Minister Benjamin Netanyahu on Sunday warned of a "long and difficult" war, as fighting with Hamas left hundreds dead on both sides after a surprise attack on Israel by the Palestinian militant group. The conflict's bloodiest escalation in decades saw Hamas carry out a massive rocket barrage and ground, air and sea offensive Saturday that Israel's army said had killed more than 200 Israelis and wounded 1,000, while soldiers and civilians were taken hostage. Gaza officials said intense Israeli air strikes on the coastal enclave had brought the Palestinian death toll to at least 256, with nearly 1,788 wounded. As fighting raged Sunday, Lebanon's powerful Iran-backed Hezbollah movement said it had fired "large numbers of artillery shells and guided missiles" at Israeli positions in a contested border areas "in solidarity" with Hamas. Israel's army had earlier said it fired artillery on southern Lebanon in response to a shot from the area without identifying the attackers. "We are embarking on a long and difficult war that was forced on us by a murderous Hamas attack," Netanyahu said on X, formerly Twitter, early Sunday. "The first stage is ending at this time by the destruction of the vast majority of the enemy forces that infiltrated our territory," he added, pledging no "respite" until victory. Overnight Israel battered the Gaza Strip with air strikes as rockets from the blockaded Palestinians territory rained on Israel. Sunday morning gun still battles raged between Israeli forces and hundreds of Hamas fighters in multiple locations, including at the Sderot police station across the border from Gaza. Police and Israeli army special forces "neutralized 10 armed terrorists" who were holed up inside the station, a police statement said. The bloody air, sea and land attack launched Saturday by Hamas came half a century after the outbreak of the 1973 Arab-Israeli war, taking Israel and the world by surprise. As the UN Security Council called an emergency meeting for Sunday, President Joe Biden voiced "rock solid and unwavering" support for the US ally and warned "against any other party hostile to Israel seeking advantage in this situation". - Hostages and 'so many bodies' - The Israeli army said overnight its forces were still engaged in gun battles in a string of Israel locations, in an operation labelled "Swords of Iron", as reservists were being called up. Hamas earlier released images of several Israelis taken captive, and another army spokesman, Daniel Hagari, confirmed that soldiers and civilians had been kidnapped. "I can't give figures about them at the moment," he said late Saturday, adding there was also a "severe hostage situation" in the Negev desert communities of Beeri and Ofakim east of Gaza. According to Ynet Israeli news website "dozens of Israeli captives, including numerous women, children and elders, are believed to have been taken into the Gaza Strip". The fighting prompted Israel to cut off Gaza's electricity, fuel and goods supplies, Netanyahu said. The Islamist group started the multi-pronged attack around 6:30 am (0330 GMT) on Saturday with thousands of rockets aimed as far as Tel Aviv and Jerusalem, some bypassing the Iron Dome defense system and hitting buildings. Hamas fighters -- traveling in ground vehicles, motorized paragliders and boats -- breached Gaza's security barrier and attacked nearby Israeli towns and military posts, opening fire on residents and passersby. "Send help, please!" one Israeli woman sheltering with her two-year-old child pleaded as militants outside opened fire and tried to break into their safe room, Israeli media reported. Bodies were strewn on the streets of the Israeli town of Sderot near Gaza and inside cars, the windscreens shattered by a hail of bullets. "I saw many bodies, of terrorists and civilians," one man told AFP, standing beside covered corpses on a road near Gevim Kibbutz in southern Israel. "So many bodies, so many bodies." AFP journalists witnessed Palestinian armed men gather around a burning Israeli tank, and others driving a seized Israeli military Humvee vehicle back into Gaza, where they were met by cheering crowds. - 'Gates of hell' - Israeli army Major General Ghasan Alyan warned Hamas had "opened the gates of hell". An AFP journalist in Gaza saw clouds of dust from the remains of bombed residential towers which Gaza's interior ministry said contained 100 apartments. Israel's military said it had warned residents to evacuate before targeting the multi-story buildings used by Hamas. The escalation follows months of rising violence, mostly in the occupied West Bank, and tensions around Gaza's border and at contested holy sites in Jerusalem. Before Saturday, at least 247 Palestinians, 32 Israelis and two foreigners had been killed this year, including combatants and civilians, according to Israeli and Palestinian officials. Hamas labeled its attack "Operation Al-Aqsa Flood" and called on "resistance fighters in the West Bank" as well as in "Arab and Islamic nations" to join the battle. Its armed wing, the Ezzedine al-Qassam Brigades, claimed to have fired more than 5,000 rockets, while Hecht said Israel had counted more than 3,000 incoming rockets. Hamas chief Ismail Haniyeh said the group was on the "verge of a great victory", vowing to press ahead with "the battle to liberate our land and our prisoners languishing in occupation prisons must be completed". - 'Dangerous precipice' - Air raid sirens wailed across southern and central Israel, as well as in Jerusalem on Saturday, and there were major disruptions at Tel Aviv airport where many carriers canceled flights. Israel said schools would remain closed on Sunday which marks the start of the week. Hamas took control of Gaza in 2007, leading to Israel's crippling blockade of the impoverished enclave of 2.3 million people. Israel and Hamas have since fought several wars. The last major military exchange, in May, killed 34 Palestinians and one Israeli. Violence also erupted across the West Bank, including annexed east Jerusalem, with five Palestinians killed and 120 wounded in clashes with Israeli forces and settlers, Palestinian medical services said. Countries around the world condemned the wave of attacks by Hamas, which Israel, the United States and European Union consider a terrorist group. European Commission President Ursula von der Leyen called the attack "terrorism in its most despicable form". But Hamas drew support from other foes of Israel, with Iran's supreme leader declaring he was "proud". UN Middle East peace envoy Tor Wennesland warned of "a dangerous precipice" and called on all sides to "pull back from the brink". (Rosie Scammell with Adel Zaanoun in Gaza) az-rsc-jd/hkb © Agence France-Presse The post Hundreds dead in Israel-Gaza war as Hezbollah launches attacks appeared first on Daily Tribune......»»
Phl economy still strongest this year — RCBC
The Philippine economy will remain among Asia’s strongest in the fourth quarter despite a possible higher interest rate because of strong consumer demand for certain products and services and more employed Filipinos, the chief economist of Rizal Commercial Banking Corporation said Saturday. “This growth forecast is still among the fastest in the region because our economy is doing well,” RCBC’s Michael Ricafort said. The World Bank recently downgraded this year’s Philippine economic growth to 5.6 percent from 6 percent due to inflation risks, apart from lower government spending and weaker demand for exports. However, it is still higher than China’s 5.1 percent, Indonesia’s 4.9 percent, and Malaysia’s 4.3 percent growth forecast. Ricafort said the Bangko Sentral ng Pilipinas (BSP) might raise its policy rate this year to slow inflation to 4 percent by year-end after it accelerated again to 6.1 percent last month. “The BSP is working to bring down prices of goods and services. As an unintended consequence, the economy could slow down. Borrowing costs for business owners also increase and consumer demand weakens,” he said. Ricafort said global oil prices have started falling which could discourage the central bank from raising its rate drastically. “Global oil prices have declined to $82 to $83 per barrel from a peak of $95 per barrel last month or since the war between oil-rich countries Russia and Ukraine began,” the economist said. He also expected a downtrend in rice prices starting this month as he said local farmers have begun collecting fresh harvests. “Inflation quickened last month mainly from higher prices of rice which accounted for nearly 9 percent of the inflation basket and grew 17 percent year-on-year,” Ricafort said. While a higher interest rate aims to slow consumption, Ricafort said the continued flow of remittances from overseas Filipino workers, or at least 3 percent growth yearly will still support substantial levels of consumer spending, especially during the Christmas season. “That is more than $40 billion a year. That’s the fourth largest in the world after India, China and Mexico,” the economist said. He added more Filipinos or 800,000 could earn from business process outsourcing or BPO this year as the industry’s revenue could rise from $32.5 billion to $59 billion based on data from the Contact Center Association of the Philippines. Another growth area is tourism, which Ricafort said saw 4 million foreign visitors last month, nearing the 4.8 million full-year target of the government. He added higher productivity among Filipinos is also expected as the country’s unemployment rate declined to 4.4 percent in August from 4.8 percent in July, based on data from the Philippine Statistics Authority. Moving forward, Ricafort said the government must improve science and technology education for higher quality jobs and increase spending on infrastructure amid the full reopening of most economies. “We are now fully reopened. Students are also back in schools which encourages putting up food businesses. Labor market in the US also improved which will affect export trade,” he said. Ricafort added the government could continue distributing financial and other assistance to farmers to control inflation. He believed the inflation rate will approach 3 percent next year, close to the ideal 2 percent for healthier economic growth. The post Phl economy still strongest this year — RCBC appeared first on Daily Tribune......»»
Central banks in no rush to cut interest rates
Investors were hoping to hear central banks finally signal this week that they were close to being done raising interest rates in their battle against inflation. Instead, policymakers indicated that high rates are here for a while yet, with more hikes on the cards and few, if any, cuts in the near future. The US Federal Reserve set the tone on Wednesday when it paused its rate-hike campaign but caused a stir by leaving the door open to another increase before the end of the year. The central bank also unsettled investors by saying that only two cuts were expected next year instead of four as anticipated. The Fed has more room to keep its "hawkish" stance as the US economy has performed better than feared despite the rate increases. This firm position is shared by other central banks. Norway's rate hike Thursday was anticipated, but it also warned further tightening was "likely" in December, while ruling out any easing before next year. Growth or inflation This firm tone came "as a surprise to the markets," which have "decided that the peak" of rate hikes is "happening right now," HSBC economist Fabio Balboni told AFP, even though "central banks' communications leave the door open to the possibility to further hikes". It leaves "real uncertainty about the level of inflation next year", he said. Their decision "reflects a compromise between growth and inflation", he added. The rate hikes raise the cost of credit for businesses and consumers, which theoretically in turn reduces demand and inflationary pressures. But if demand slows too much, it runs the risk of triggering a recession. Faced with this dilemma, the European Central Bank (ECB) chose inflation-limiting measures, with a 10th consecutive rate hike. That took its benchmark rate to 4.0 percent, the highest since 1999. "We can't say we have peaked," ECB president Christine Lagarde said, although other officials indicated that the cycle of raising rates might be coming to a close. "Our future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary," the bank's chief economist Philip Lane said Thursday in New York. Return to lower rates There are other signs, however, that rates are reaching their peak. The Bank of England on Thursday announced its first pause on raising rates since December 2021, following a slight decline in UK inflation in August. Switzerland and Japan -- like half of all central banks -- have also chosen to halt raising rates in the past 10 days. "We expect no more rate hikes in the future" for the US, England and Europe central banks, said Balboni. Jennifer McKeown of Capital Economics said she expected the last hikes to come in the fourth quarter, and that the easing cycle would take hold as 2024 approaches. "By this time next year, we anticipate that 21 out of the world's 30 major central banks will be cutting interest rates," she wrote. Although Balboni, taking a more measured stance, said "in the context of weak growth, it will be very complicated to reduce rates" while inflation remains "too high". Instead, he believes reductions to US rates won't be seen until the third quarter of 2024, while the rest of the world will have to wait until 2025 for rate relief. The post Central banks in no rush to cut interest rates appeared first on Daily Tribune......»»
Nina Lim-Yuson — A lifetime of girl scouting
The president of the Girl Scouts of the Philippines, Nina Lim-Yuson, grew up in a family and home of Girl Scouts. Her grandmother, Pilar Hidalgo-Lim, was one of the co-founders of the GSP. “It was actually my Lola Pilar who suggested to Josefa Llanes Escoda, the GSP founder, to go to America to learn about girl scouting.” This tidbit of history, Nina shared in an online interview with the DAILY TRIBUNE. Pilar Hidalgo-Lim became GSP president, and so did Nina’s mother, Estefania Aldaba-Lim, who served as secretary of the Department of Social Welfare and Development. Nina’s sister too, the eminent broadcast journalist, Cheche Lazaro, was a Girl Scout. Coming from a lineage of women achievers, Nina could not have chosen a different path. It was scouting that formally introduced the family to social responsibility, skills development and citizenship. Her brothers were also Boy Scouts. “I started when I was six years old and it was my Lola Pilar who inducted me as a Brownie. It used to be called Brownie because we were still using the American pattern,” she related. She belonged to Troop Number One, the first to be organized by the GSP national headquarters. In high school at the Jose Abad Santos Memorial School of the Philippine Women’s University, she became a junior and later a senior Girl Scout. College would briefly end her Girl Scouting as she focused on her studies. Along the way, she also danced with the Bayanihan Folk Dance Company. It was not unexpected that she would return to scouting, her first love, and her first extra-curricular activity. For the last 36 years, she has been active in various organizations and volunteer work. She founded the Museong Pambata. She is a recipient of The Outstanding Women in the Nation’s Service and is active in its various social development efforts. What Nina brings to her post is the legacy of leadership that had been passed on to her through generations of women leaders in the family. “My Lola Pilar was my idol. She was such a nice person and I never knew her totally as a president. I knew her more as a loving lola from all the stories she related when we rode up to Baguio. “My mother, on the other hand, was the opposite. She was very career-minded. I learned naman from her a lot of things, like being thrifty and having a list of things to do. In terms of organization, she was like that. Because she was in government. And, you know, when we started Museo, while it was actually my concept, I learned a lot from her. She would call me up at 5 o’clock in the morning and she would rattle off what needed to be done, like ‘number one, number two and so on.’ That was her. And I’m glad that I worked with her for six years in Museo. She was the president and I was the executive director for six years. I took over in 2000 as president and chief executive officer. And then, I stepped down in 2017.” Girl Scouts who read and tell stories Nina was elected president of the Girl Scouts of the Philippines for the term 2021-2024 during its 2021 national convention. From day one, she shared, “My purpose was to reach out to the community-based troops because we have always been school-based. Many young women now have social problems so we need to reach out to the communities through our community-based troops.” Also on top of her priorities is literacy development, a cause that she addressed even in the Museo Pambata. She explained, “My advocacy has always been education. So, I was very concerned because the Asian Development Bank reported in 2022 that the World Bank found out that our Filipino children at ages 9 and 10 cannot read. So, I felt that because girl scouting is all over the country, with 96 local councils, the organization could serve as a vehicle for improving literacy in our country. “We started the Girl Scout Storyteller project because storytelling affects the heart first before the mind. When young people start with storytelling, they will love the stories and then the written word. They would then want to read. “We now have storytelling in economically challenged communities and we have partners. We sent out 2,500 books throughout the country with the help of our partner couriers.” Initially, she sought the help of her family foundation “to give a donation. I also sought the help of Ging Montinola, who is into literacy development. Together, we founded the literacy program. We are building this fund to cover the cost of buying children’s books. We will have a storytelling contest next year.” Raising funds for Camp Escoda Nina then shifted the conversation to another major endeavor that she is spearheading as GSP president — fundraising for the 27-hectare Camp Josefa Llanes Escoda in Palayan City, Nueva Ecija, which was donated by the provincial government during the term of Governor Amado Aleta, the father of consul and civic leader Fortune Ledesma. “Palayan is beautiful because it has rolling hills, but it doesn’t have electrical and water facilities and roadworks. It doesn’t have a swimming pool, and it’s so hot in Nueva Ecija. It also does not have a conference hall. This is a big one-time fundraising project because it’s for the future of the girls who are going to the camp. Because as of now, if you go camping there, you have to walk up the hills to get your drinking water. You have to make buhos to take a bath.” She recalled, “In my time as a young Girl Scout, which was of another era, we had to walk in the dark to fetch water to fill up two drums. I was so scared because there were tuko in Los Baños. That taught me to be courageous. Camps really build up your lifetime skills and attitude. Camping is very integral in girl scouting and boy scouting. So, this camp will serve a purpose. It just needs various basic facilities to make it world-class and convenient with the proper amenities, but the girls will continue to learn all those survival techniques and appreciate nature right on the camp.” She praised architect Pippo Carunungan, “who is an environmental planner. He surveyed the site and drew up everything. It will be a beautiful camp, he said, because it’s a gift of nature.” First Lady as Chief Girl Scout Nina recently led the Girl Scouts in a fundraising ball attended by the “First Lady, Liza Araneta-Marcos, who is our Chief Girl Scout. It’s mandated in the GSP constitution that whoever is the female president of the country or the First Lady is the Chief Girl Scout. In the past, we had Imelda Marcos, Gloria Macapagal Arroyo. All the first ladies were all Chief Girl Scouts. “Mrs. Liza Marcos spoke before us and she promised to help. She said, ‘We will make it the best campsite.’ Everyone was excited to see her and she obliged everyone who asked to have selfie with her. She is very friendly. She is really a Girl Scout.” Nina shared, “A generous couple is sponsoring the swimming pool at P6 million, while a gentleman entrepreneur is sponsoring the perimeter fence at P1.5 million. Many other businessmen and leaders have pledged to help build this dream GSP project. “We really need to raise about 50 million to have a very good camp. But when the First Lady heard about it, she said, ‘It has to be P250 million.’ But, really, when we have the funds, we can have deep toilets that have running water instead of tabo-tabo. Since we have a little Pampanga river that runs across the camp, we can build a bridge that crosses it and then the girls can have white-water rafting there in the Pampanga river. “Camp Escoda will be a very important and significant venue for our Girl Scouts to gather, bond, learn new skills and develop as morally upright citizens of the country and the world. It is especially so because camping is integral in any Girl Scout’s life. If you don’t have camping, it’s like half of your scouting life is missing. Every Girl Scout remembers that time of her youth. And being the national camp, it will welcome Girl Scouts representing the 96 councils from Luzon, Visayas and Mindanao who will participate in various events and trainings.” Girl Scouts of all ages As GSP president, Nina travels to various parts of the country. “We have regional conferences aside from the meeting of the Central Board when regional heads and executives come to Manila. “I had just come from Baguio where I stayed for two-and-a-half days. I met our young Girl Scout representatives from ages 14 to 18. I enjoyed listening to them and exchanging ideas with them. I am so happy that we have a wealth of intelligent girls who want to serve the country. They are the ones who are going to take over. “It’s amazing that GSP is no longer limited to old people on the board. We finally have young ones on the board. Our Escoda committee is headed by Jade Delgado from Iloilo. Then we have Justine Bautista. She’s a psychometrician. She heads the Program Committee, which is a big committee because when we were in Baguio, we had 86 girls from all the councils throughout the country. Many of them are running for SK. “So, in my 70s now, which I don’t feel at all, I don’t take any medicines or something like that. Being with young people is what inspires me. Because at 15, 16 or 17, they already know that they have some kind of a mission.” Nina proudly shared that the venue of the Baguio conference, 'Ating Tahanan' on the South Drive was bought during the tenure of my Lola Pilar. We have four buildings there, including the houses of Senator and actor Rogelio de la Rosa and Carlos Valdes, the accountant. Lola Pilar, according to Carlos Valdes, twisted his arm to get a low price. I’m so thankful for all those who preceded me because they bought these places. It’s on South Drive which is so valuable. We even have a reserved forest behind us.” As she looks forward to the next camping and gets even busier raising funds for Camp Escoda, Nina feels elated that “every one of us in the Girl Scouts has been together in our various undertakings. The nice thing is we are now intergenerational because we try to bring in the old with experience, institutional memory and their wisdom born of their long life, and the young who are full of enthusiasm, energy and new ideas.” A star scout for a granddaughter While Nina does her part for the bright future of girl scouting in the country, her personal family too has not stopped contributing to the roster of members to this worldwide organization. Today, a granddaughter of hers, seven-year-old Rocio Yuson de Guzman, is a Star Scout. She is the daughter of Nina’s daughter, Nicky. No grandmother could have been prouder. Nina said, “Rufio loves being a star scout. When I arrived from the recent world conference in Cyprus, I came back with some badges and I gave some to Rufio who is very proud of the little badges that I got for her.” For sure, Nina will pass on not just the badges to Rufio. More importantly, she will give her granddaughter the once-in-one’s-childhood experience of being a Girl Scout and learning “the values that are identified in the Girl Scout Promise and Laws. I think that while there is so much to enjoy and learn, it is the inculcation of these values that would mold her into a well-rounded human being. As we all know, a Girl Scout’s honor is to be trusted. A Girl Scout is loyal, thrifty, courteous… and so on. It’s like a mantra -- the values that one lives by. “I have reached that point when it is not about success or what one accumulates in life, whether awards or accomplishments or material things. It is more about what I can share and scouting gives me that honor and privilege — to do my part in helping mold our young girls and making them aware even at an early age that they have a mission and worthy purpose in life. It is not just about being good and outstanding on your own but it is also about helping others to become better in what they’re doing and live better lives. “And I need not look far. As a grandmother, I dote on my Star Scout granddaughter, Rufio. There’s a world out there for her to discover and in which she has a role to play and use the skills and values she will learn from scouting.” The post Nina Lim-Yuson — A lifetime of girl scouting appeared first on Daily Tribune......»»
Global stocks rise on Arm trade debut as ‘dovish’ ECB hike hits euro
Global stock markets rose while the Euro slid on Thursday after the European Central Bank (ECB) signaled its latest interest rate hike could be its last. The major stock indexes on Wall Street rose following positive economic data, while chip designer Arm saw its share price surge almost 25 percent on its trading debut in New York. The SoftBank-supported firm's banner initial public offering left it with a market capitalization of around $65 billion -- well above its target. Arm's IPO netted SoftBank almost $5 billion while leaving it with control over approximately 90 percent of the company. "I want to keep as much as possible as long as possible," SoftBank chief executive Masayoshi Son told CNBC on Thursday. "I'm a long-term believer," he added. The Dow Jones Industrial Average rose almost one percent, while the S&P 500 and the Nasdaq both increased. 'Reached the peak'? In Frankfurt, the ECB opted for another interest rate hike of 0.25 percentage points on Thursday as it continues the fight against inflation, taking the closely-watched deposit rate to its highest level since the introduction of the euro in 1999. The bank defied calls for a pause to take pressure off the faltering eurozone economy, even as it cut growth forecasts. In its updated forecast, the ECB now sees inflation falling to a near-target level of 2.1 percent in 2025. The central bank's Governing Council said it "considers that the key ECB interest rates have reached levels" that over time should make a "substantial contribution" to returning inflation to its target level of two percent. "This is a clear and deliberate signal to the market that the ECB thinks it is done for now and we have reached the peak in rates," said Neil Wilson, chief market analyst at Finalto. The euro traded lower against the dollar due to the "dovish hike," he added. Eurozone stocks, which were trading lower beforehand, bounced higher. Other analysts were not so categorical that the ECB was done with hiking rates. "A lingering pause is being signaled, but it's a low-conviction pause," said Mark Wall, chief European economist at Deutsche Bank Research. "The ECB has retained the option to hike further if necessary," he added. London's FTSE 100 gained two percent on rising commodity prices, including oil, and the falling pound. Crude prices remain elevated, with some analysts warning they could soon return to more than $100 per barrel. The post Global stocks rise on Arm trade debut as ‘dovish’ ECB hike hits euro appeared first on Daily Tribune......»»
UBS’s Credit Suisse takeover, ‘deal of the century’?
Did banking giant UBS make "the deal of the century" when it bought one of the world's biggest banks for a pittance as it teetered on the edge of the abyss? Switzerland's largest bank was in March strong-armed by Swiss authorities into a $3.25-billion takeover of Credit Suisse, to keep its closest domestic rival from going under. At the time, investors gasped at the risks UBS was taking on with the purchase. But by August, the bank said it would not need the billions in support offered by the Swiss government and central bank to offset any surprises that might pop up in its stricken rival's accounts. That must mean that Credit Suisse's situation was "much better than described in March", Thomas Aeschi, a member of parliament with the populist rightwing Swiss People's Party (SVP), wrote on X, formerly Twitter. UBS seemed to prove him right when it unveiled its second-quarter results on August 31. The bank posted a towering net profit of $29.2 billion for the three-month period, thanks to an exceptional gain due to the gulf between the amount paid for Credit Suisse and its book value. 'Godsend' "UBS has pulled off the deal of the century," Switzerland's Socialist Party said, maintaining the "rescue" was more of a "godsend", allowing it to snatch up a bank at a dramatically reduced rate. "If we had chosen another path, (like) a temporary or partial nationalization," said Samuel Bendahan, a Socialist MP and economics professor at the University of Lausanne, the Swiss state "would have taken on the risk, but those $29 billion would have gone to the population". Instead, the takeover has created "a monopolistic situation", he told AFP, warning that while this might strengthen UBS, it puts Switzerland in an extremely risky position if the new mega-bank were to one day face a crisis. Politicians are not the only ones taking issue with the takeover. Gisele Vlietstra, founder of the Swiss Investor Protection Association, told public broadcaster RTS that UBS's towering quarterly profit confirms that the "intrinsic value" of Credit Suisse was "far higher" than the purchase price. She said she hoped that the lawsuits brought by her association and others on behalf of thousands of Credit Suisse shareholders will help determine "the correct value" that they should be compensated. 'Nickel and dime' "UBS paid a nickel and dime" and "got rid of its main competitor" in one fell swoop, Carlo Lombardini, a lawyer and banking law professor at Lausanne University, told AFP. The coming restructuring will clearly carry risks, "but having paid just three billion, it can't go wrong", he said, slamming the option chosen by the Swiss authorities. Like UBS, Credit Suisse was listed among 30 international banks deemed too big to fail because of their importance in the global banking architecture. But the collapse of three US regional lenders in March left the firm looking like the next weakest link in the chain. The Swiss government feared Credit Suisse would have quickly defaulted and triggered a global crisis, shredding Switzerland's reputation for sound banking. But its chosen option for dealing with the issue was certainly a boon to UBS, which will now swell to manage $5 trillion of invested assets. Confidence 'evaporated' UBS chief Sergio Ermotti acknowledged in a recent interview with the SonntagsZeitung weekly that the bank had been "worried" about its competitor since 2016, and had among other things looked into the possibilities of buying it, for fear a foreign lender might snap it up. He acknowledged that Credit Suisse may have survived for a time if the central bank had injected more cash, "but it would not have been enough, since confidence had evaporated". Since the takeover announcement in March, UBS has seen its share price soar 31 percent. But the bank still faces significant challenges, Vontobel analyst Andreas Venditti told AFP. The $29 billion "is a huge one-off gain, but this is just accounting", he said, stressing that "the losses and costs will come later". The analyst, who a few months ago wondered in a note whether UBS had secured "the deal of the decade or a decade of headaches", stressed that "it's going to be a huge task". He said it would only become clear "whether it was worth it" after most of the restructuring is done three years down the line. Parts of the business are continuing to "produce huge losses", he said, warning "many things can still go wrong". Swissquote analyst Ipek Ozkardeskaya agreed, recalling that "UBS was forced" into the merger. Now it is up to the bank to "transform an 'obligation' to its advantage". The post UBS’s Credit Suisse takeover, ‘deal of the century’? appeared first on Daily Tribune......»»
Pause or hike? ECB rate decision on a knife edge
The European Central Bank is walking a tightrope between still-high inflation and a darkening eurozone outlook as it decides whether to lift interest rates again or finally pause its historic hiking cycle. Whether to raise borrowing costs for a 10th straight time when they meet Thursday is shaping up to be rate-setters trickiest decision since the tightening campaign began. The central bank for the 20 countries that use the euro has already lifted rates by 4.25 percentage points since July last year to combat runaway consumer prices. But the Frankfurt institution now finds itself in a "difficult spot," HSBC said in a note, as officials struggle to digest competing data. On one hand prospects for the single currency area are looking bleaker, particularly due to a poor performance in its biggest economy, Germany, which sank into a recession over the winter and is struggling to climb out of it. Latest data showed eurozone second-quarter growth reached just 0.1 percent, lower than previously estimated, while a recent survey pointed to the economy contracting at its fastest rate in three years as a manufacturing slowdown spread to services. The weak data has fuelled calls for the ECB to pause the aggressive hiking cycle for fear it could deepen a downturn, and President Christine Lagarde finally opened the door to doing so at the bank's last meeting in July. Eye-watering inflation But consumer prices, which began surging after Russia's invasion of Ukraine due to galloping energy costs, continue to rise strongly. This would support arguments for another hike to borrowing costs, with the aim of further depressing demand and slowing inflation. Consumer price rises came in unchanged at 5.3 percent in August, way above the ECB's two percent target, although closely-watched core inflation -- excluding volatile energy and food prices -- eased a little. While inflation has slowed since last year as energy costs fall, officials are now worried that other factors, particularly wage increases in a tight labor market, are keeping it elevated. The data makes for a "very complicated mixed bag," said ING economist Carsten Brzeski. "We expect a very heated debate with a close outcome." Brzeski said he expected the 26-member governing council to opt for one final increase, which would take the closely-watched deposit rate to a record high. Other analysts, however, are betting on a pause on Thursday, although they also think the ECB might then impose one final hike at a later meeting. This would be similar to what the US Federal Reserve has done -- taking a break in June before resuming lifting rates again in July. The Fed and the Bank of England are due to hold their next meetings the week after the ECB. Hawks versus doves ECB officials have insisted their decision will depend on incoming data, which has put the focus on updated forecasts the central bank is also due to release on Thursday. In the run-up to the meeting, they have mostly been cagey about what will happen, a contrast to other recent meetings where the decision was usually well-telegraphed in advance. And mixed signals have emerged in recent days. Governing council member Peter Kazimir called for another 25-basis-point hike, with the Slovak central bank chief writing in an op-ed it is "better to be safe than sorry". But another member, Italian central bank boss Ignazio Visco, disagreed with those who think it is better to overdo it, rather than undershoot, while ECB chief economist Philip Lane welcomed signs inflation was easing in some areas. Analysts stressed it was far from clear whether the "hawks", backers of further tightening, or "doves" -- proponents of a pause -- would prevail on Thursday. But if they do choose to lift rates, it will likely be "the final hike in this cycle, with the ECB on hold until at least mid-2024," said Frederik Ducrozet, chief economist at Pictet Wealth Management. The post Pause or hike? ECB rate decision on a knife edge appeared first on Daily Tribune......»»
CV drivers awaiting petrol support
Drivers and operators of public utility vehicles in Central Visayas have to wait three more weeks for the release of fuel subsidies, according to Land Transportation Franchising and Regulatory Board regional director Eduardo Montealto Jr. He explained that the LTFRB central office was still awaiting the downloading of funds for the subsidies from the Department of Budget and Management. Likewise, Montealto said the number of beneficiaries will be finalized in a memorandum circular or a board resolution issued by the central office. About 1.6 million drivers and operators from across the country are expected to benefit from the fuel subsidy. Traditional jeepney drivers will receive P6,500, tricycle and delivery service vehicle drivers will get P1,000, and modern public utility vehicle drivers will receive higher amounts through fuel cards valid at selected gasoline stations. Montealto said Central Visayas will have the fourth-largest allocation for fuel subsidy, with the National Capital Region as the first, followed by Region 3 (Central Luzon) and Region 4A. Earlier, LTFRB-7 technical division chief Joel Bolano disclosed that the agency had anticipated the distribution of fuel subsidies by the end of August, but this did not push through due to the incomplete list of beneficiaries. Meanwhile, the Cebu chapter of the Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide, or PISTON, called for the outright suspension of the excise tax on fuel. Diesel prices have risen by P12.45 in the last six weeks, while gasoline has risen by P9.15 and kerosene by P12.15. Montealto said the subsidy will be downloaded directly from the LTFRB central office to the fuel subsidy cards of the drivers and operators. Those without fuel or cash cards may transact directly with the Land Bank of the Philippines. He admitted that there are unclaimed fuel subsidies for 2021 and 2022. The post CV drivers awaiting petrol support appeared first on Daily Tribune......»»
Phl inflation hit 5.3% in August
The Philippine inflation rate accelerated in August due to higher prices of rice and fuel, ending a six-month streak of slowdown and making the central bank reevaluate its decision to pause interest rates. Preliminary data released by the Philippine Statistics Authority on Tuesday showed that the country's headline inflation reached 5.3 percent in August, surpassing the 4.7 percent rate recorded in July. The country's headline inflation also called the consumer price index, is above the 5 percent forecast of economists in a DAILY TRIBUNE poll but within the central bank's 4.8 percent to 5.6 percent projection for the month. But the country's core inflation, which excludes the volatile energy costs, eased to 6.1 percent in August from the previous month's 6.7 percent. This brings the average core inflation from January to August 2023 to 7.4 percent. Core inflation was observed at 4.6 percent in August 2022. In a press briefing, National Statistician and PSA Undersecretary Dennis Mapa noted the higher prices of rice, which weigh heavily in the consumer price index. “The acceleration of food inflation in August 2023 was mainly brought about by the higher year-on-year growth rate observed in rice at 8.7 percent from 4.2 percent in July 2023,” Mapa said. In response to rising retail costs and concerns about merchant stockpiling, President Ferdinand Marcos Jr. has limited the price of the basic commodity. The Philippines set rice price caps to control food costs, and they would last as long as the government deemed it necessary. The country's economic planning secretary said that the Philippines, one of the top importers of rice in the world, may drop tariffs on the grain to help lower domestic expenses in response to the unexpected increase in consumer prices in August. The country’s chief economic planner has also called for a review of the existing tariff levels on rice to help lower the cost of this staple for consumers while considering the impact of this intervention on local producers. “To partially counterbalance the rise in global prices and alleviate the impact on consumers and households, we may implement a temporary and calibrated reduction in tariffs,” National Economic and Development Authority Secretary Arsenio Balisacan said in another statement. Meanwhile, food inflation nationwide increased to 8.2 percent in August 2023 from 6.3 percent in July 2023. Food inflation was lower at 6.5 percent in August 2022. PSA said transportation prices increased 0.2 percent during the month after declining 4.7 percent annually in July. For context, the Light Rail Transit Authority raised fares during the month. LRTA increased the single journey ticket minimum fares for both LRT1 and LRT2a to P15 while maximum fares have gone up as high as P35. In August, oil companies raised diesel prices by almost P10 and gasoline by almost P6. ING economist Nicholas Mapa said rice, transport, and electricity costs will determine the inflation path for the next few months. While he expects the BSP to stay on hold, he said in a post on platform X (formerly Twitter) that it "could consider a hike if this becomes a trend." Following the data, the Bangko Sentral ng Pilipinas said in a statement it "stands ready to adjust the monetary policy stance as necessary" to prevent the broadening of price pressures and the emergence of additional second-order effects. The post Phl inflation hit 5.3% in August appeared first on Daily Tribune......»»
Analysts predict inflation rate at around 5.0% for August
The country's inflation rate will remain above the government's 2 to 4 percent target band, said private sector economists who slightly upgraded their price-rise forecasts for August. A DAILY TRIBUNE poll of analysts over the weekend yielded a median estimate of 5.0 percent for August inflation, within the 4.8 to 5.6 percent forecast given by the Bangko Sentral ng Pilipinas (BSP) last Thursday. If the August number matches the poll consensus, the median estimate will be higher than the 4.6 percent print in July 2023 but lower than the 5.4 percent inflation rate in June 2023. The Philippine Statistics Authority is expected to release the August inflation data on Tuesday, 5 September. Bank of the Philippine Islands's lead economist Emilio "Jun" Neri Jr. said higher prices of liquefied petroleum gas (LPG), kerosene, diesel and vegetables likely drove the Consumer Price Index much higher month-on-month. "Lower electricity (and) other food items may offset some of this," Neri said in an email to Daily Tribune. Rizal Commercial Banking Corp. chief economist Michael Ricafort said that the country's higher local palay and rice prices are one of the "main catalysts" for the August inflation print due to weather disturbances in most Southeast Asian countries affecting rice exports. He added that the agriculture damages caused by tropical storms in Northern and Central Luzon likewise affected the prices in the country. Ricafort likewise attributed the higher fuel prices and depreciating Philippine Peso against the US Dollar to the slightly higher inflation rate for August. "However, these are offset by mostly softer economic data in China and other countries, as partly weighed by higher inflation that reduced household spending and higher interest rates that led to higher borrowing costs," Ricafort said in a Viber message. Security Bank's senior assistant vice president and chief economist Robert Dan Roces also shared the same insights with other economists, saying that the primary factors contributing to the slight increase in the August inflation print are fuel and food prices. "Although the current diesel pump price is significantly lower than the P75 per liter average recorded in June of the previous year, food and fuel prices remain the main drivers of inflation. Notably, farm gate prices of other food items decreased in August compared to July," Roces said in an email. Despite these factors, Roces said the retailers may either be reluctant to reduce current prices or the price reduction price may be taking some time. Roces also underscored that the current inflation increase is mainly driven by the price of rice, which has recently surged by up to P10 per kilo. "Looking ahead, we still see that inflation will fall into the Bangko Sentral ng Pilipinas (BSP) target range of 2 percent to 4 percent by the fourth quarter of this year, barring sustained spikes in rice and fuel in the remaining months of 2023," Roces said. China Banking Corp. chief economist Domini Velasquez said core inflation is expected to continue its downtrend to around 6.0 percent in August despite the projected higher headline rate. "If realized, we do not expect BSP to react immediately to the expected inflation print with higher policy rates. Shocks for August were largely supply-side but have not, so far, detailed the inflation path toward the target range in (the fourth quarter). We still expect inflation to fall within the BSP's target by November," Velasquez said. The post Analysts predict inflation rate at around 5.0% for August appeared first on Daily Tribune......»»
Gov’t seeks Indon capital
Finance Secretary Benjamin Diokno presented to Indonesia’s business community the Philippine economic plans for securing investments in infrastructure, energy and technology. In a statement by the Department of Finance on Thursday, it said Diokno conducted the talk in Jakarta City on Wednesday ahead of the 10th ASEAN Finance Ministers and Central Bank Governors’ Meeting from 24 to 25 August. The listeners included members of the Indonesian Chamber of Commerce and Industry and the Philippine Business Club Indonesia, and officials of foreign embassies in Jakarta. Diokno said the Philippine lawmakers are now studying all measures for faster public-private partnerships or PPPs as the Marcos administration aims to build 197 infrastructure flagship projects, including railways, airports and water management, among others. PPP crucial “The PPP Act, which is currently pending in the Senate, consolidates all legal frameworks on PPP and creates a unified system for investors to refer to when engaging in PPP projects,” DoF said. To build more capital for Philippine infrastructure development and diversify investment channels, Diokno said government agencies are now crafting the rules and regulations of the Maharlika Investment Fund. “This is the Philippines’ first sovereign investment fund that will serve as a platform for investors to engage in direct equity investments in Philippine ventures,” he said. Diokno said both the legislative proposal and newly approved sovereign fund will support economic expansion from liberalized investment laws passed by the previous Duterte administration. Diokno shared amendments to the Public Service Act which now allows full foreign ownership from 40 percent previously of various businesses, such as airlines and telecommunications. Amid growing concerns with climate change, the finance chief said this applies also to renewable energy facilities, such as solar plants. Indonesia, along with China and India, is among the world’s largest exporter of coal, according to the International Energy Agency. However, Indonesia vowed to achieve net-zero carbon emissions by 2060, while it is 2050 for the Philippines. To ensure efficient management and profitability of infrastructure, Diokno said the government also eased processes for foreign investors under the Build-Operate-Transfer Law. “To help foster the development of high quality, modern, and sustainable infrastructure in the country, we wasted no time in building a fertile business and investment ecosystem for private players,” Diokno said. The post Gov’t seeks Indon capital appeared first on Daily Tribune......»»
Bangko Sentral adopts UN’s green money guide
The Bangko Sentral ng Pilipinas, or BSP, has committed to sustainable investing by complying with the United Nations’ Principles for Responsible Investment. In a statement released Monday, the central bank said it has become a signatory of the PRI to strengthen its efforts to protect the environment and further guide its policies and investments under an 11-point Sustainable Central Banking Strategy. This overall strategy encompasses investments in green bonds under the environmental, social and governance or ESG approach, and climate stress-testing activities which determine and evaluate environmental risks from banking activities, according to BSP. Road to responsible investing “We are extremely pleased to welcome BSP as a PRI signatory. As the central bank for the Republic of the Philippines, BSP has a broad mandate and responsibilities, and a unique opportunity to influence the responsible investment ecosystem in the market,” PRI chief Executive officer David Atkin said. This initiative allows the BSP to deepen its understanding of responsible investing, enhance the inclusion of ESG factors into the overall investment process and decision-making and benchmark its practices with other PRI signatories,” BSP said. The PRI was created in 2005 by some of the world’s largest institutional investors through discussions with former United Nations Secretary-General Kofi Annan. The post Bangko Sentral adopts UN’s green money guide appeared first on Daily Tribune......»»
July BoP deficit narrows — BSP
The balance of payments, or BoP, posted a narrower deficit in July due to proceeds of the national government’s foreign currency-denominated debt from commercial sources, the Bangko Sentral ng Pilipinas reported. Data from BSP showed that the country’s BOP position hit a deficit of $53 million in July, from a deficit of $1.8 billion a year ago. “The BoP deficit in July 2023 reflected net outflows arising mainly from the National Government’s payments of its foreign currency obligations,” BSP wrote in an accompanying statement. The central bank added that the cumulative BoP level for January to July was a $2.2 billion surplus, a reversal from the $4.9 billion deficit recorded in the same period a year ago. BSP said the reversal mainly reflected the improvement in the balance of trade and the sustained inflows from personal remittances, net foreign borrowings by the NG, trade in services, and foreign direct investments. Meanwhile, the gross international reserves, or GIR, level increased to $100 billion as of end July from $99.4 billion as of end June. Buffer more than enough “The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income,” BSP said. “Moreover, it is also about 5.9 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity,” it added. In an emailed commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the country’s BoP data could still be supported by the country’s structural US dollar inflows, such as foreign direct investments and overseas Filipino remittances. The post July BoP deficit narrows — BSP appeared first on Daily Tribune......»»
BSP posts deficit of $53M
The country's balance of payments (BoP) posted a narrower deficit in July as the government due to proceeds of the national government's foreign currency-denominated debt from commercial sources, the Bangko Sentral ng Pilipinas (BSP) reported. Data from BSP showed that the country's BOP position hit a deficit of $53 million in July, from a deficit of $1.8 billion a year ago. "The BOP deficit in July 2023 reflected net outflows arising mainly from the National Government's (NG) payments of its foreign currency debt obligations," BSP wrote in its accompanying statement. The central bank added that the cumulative BOP level for January to July was a $2.2 billion surplus, a reversal from the $4.9 billion deficit recorded in the same period a year ago. BSP said the reversal mainly reflected the improvement in the balance of trade and the sustained inflows from personal remittances, net foreign borrowings by the NG, trade in services, and foreign direct investments. Meanwhile, the gross international reserves (GIR) level increased to $100.0 billion as of end-July 2023 from $99.4 billion as of end-June 2023. "The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income," BSP said. "Moreover, it is also about 5.9 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity," it added. In an emailed commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the country's BOP data could still be supported by the country's structural US dollar inflows, such as foreign direct investments and overseas Filipino remittances. He added that the higher GIR in July 2023 could still support the country's "relatively stronger external position," which fundamentally supports the country's relatively favorable credit ratings. For context, the country's sovereign bonds received a "Baa2" rating from Moody's Investors Service, "BBB+" from S&P Global Ratings, and "BBB" from Fitch Ratings. The three debt watchers gave the Philippines a "stable outlook," indicating that there won't be any changes to the rating in the next 12 to 18 months. The post BSP posts deficit of $53M appeared first on Daily Tribune......»»
BSP remains hawkish despite keeping rates
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said on Friday that the central bank has more room to hike interest rates without contracting the Philippine economy, if needed, to address inflationary risks in the country. Remolona made the remarks in an interview with CNBC TV after the BSP's Monetary Board decided to keep the benchmark interest rate at 6.25 percent. The BSP governor cited several factors that could push inflation higher, including rising food prices, supply chain disruptions, and the depreciation of the Philippine peso. "The supply shocks can have effects on expectations," Remolona said. "And so we try to moderate those shocks by working on the demand side for the same commodities and a broader range of commodities," he added. Remolona said that the BSP is closely monitoring the economic slowdown in the Philippines as the country's gross domestic product (GDP) growth slowed in the second quarter at 4.3 percent versus the 6.4 percent expansion in the first quarter of 2023. "The softness seems to be about special factors," Remolona said. "The neutral or the natural rate of interest is closer to four percent in real terms. If our projections are right, we will be at 3.25 percent or neutral interest rates in real terms. So we have room to hike," he added. The International Monetary Fund describes the "natural rate" as a reference point for central banks that use it to gauge the stance of monetary policy. When asked why BSP Monetary Board decided to keep the benchmark interest rate at 6.25 percent, Remolona explained that the data "seem to be going in different directions." "So I think a pause is prudent, but we're ready to hike if the upside risks materialize. We're ready to hike," he added. Remolona also said that the BSP is not as concerned about keeping in lockstep with the US Federal Reserve on interest rate hikes. "It's not as important as people think," Remolona said. "What we find is that sometimes we do intervene, but what we find what is more effective than intervention is this forward guidance," he added. Remolano said that the BSP will continue communicating clearly with the market about its monetary policy plans. "So we give the market a better idea of what we're thinking about down the road, and that's what seems to be more effective," the Central Bank chief said. The BSP governor also said that the central bank has ample foreign reserves to cushion the impact of any external shocks. However, he expressed concerns about the possible slowdown next year in the global economy and possible financial accidents like Silicon Valley Bank (SVB) and Credit Suisse. "But so far, we've emerged unscathed from those two incidents, but we worry about similar incidents in the future," Remolona said. "But we do have ample reserves for that kind of incident, and we also have a very strong banking system." The post BSP remains hawkish despite keeping rates appeared first on Daily Tribune......»»
Fed rate hikes still likely — economists
Economists expect higher returns from US dollar-denominated bonds as the improving job market overseas signals higher rate from the Federal Reserve this year. “It is very uncertain if the Federal Reserve is already done with its hiking cycle. Additional rate hikes are still possible given the tight labor market in the US and its impact on wages,” Jun Neri, chief economist of Bank of the Philippine Islands, said Thursday. Data from the US government showed an additional 187,000 jobs last month, indicating a livelier business environment and overall economic growth in the US. Recession fears linger The job data came after worries about the recession caused by high inflation and recent layoffs, especially in the technology industry. “Short-term bond yields may stay elevated as central banks continue to fight inflation,” Neri said. Michael Ricafort, chief economist of Rizal Commercial Banking Corp., told the Daily Tribune the growth in the US industrial sector driven by a 5.2 percent expansion in automobiles in July further supports the still elevated rates. “Stronger US industrial production data could support future Federal rate hikes. Most participants also continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” he said. With more job opportunities and income earners, Ricafort agreed with economists that the chances of the US going into a mild recession are now slim. The post Fed rate hikes still likely — economists appeared first on Daily Tribune......»»
Lebanon freezes former central bank chief’s bank accounts
Lebanon ordered the freezing of the bank accounts of its embattled former central bank governor on Monday, days after the United States, the United Kingdom, and Canada slapped him with sanctions. Former governor Riad Salameh, 73, who left his post of 30 years at the end of last month without a successor, is widely viewed as a key culprit in the country's dramatic economic crash. The central bank's special investigation committee has ordered the lifting of banking secrecy as well as the freezing of accounts "that are directly or indirectly" linked to Salameh, it said in a statement. The same decision measures were applied to Salameh's son Nady, his brother Raja, his former assistant Marianne Hoayek and his former partner Anna Kosakova. On 10 August, the US Canada and Britain announced sanctions against Salameh, his brother Raja, and Hoayek, while Washington and London also included his former partner Kosakova in their lists. In addition, the US sanctioned his son Nady Salameh. Salameh is wanted in France and Germany, and Interpol has issued a Red Notice for his arrest, but Lebanon does not extradite its nationals. Lebanon's deeply divided political class has failed to agree on a permanent replacement for Salameh, creating another power vacuum in a country that also has no president and is ruled by a caretaker government. The central bank's first vice-governor, Wassim Manssouri, has temporarily picked up the reins. A preliminary forensic audit of Lebanon's central bank by professional services firm Alvarez & Marsal (A&M) has painted a damning picture of the institution under Salameh. The post Lebanon freezes former central bank chief’s bank accounts appeared first on Daily Tribune......»»