Friday, December 24, 2010
Tuesday, December 21, 2010
Emergency Power Interruption on Wednesday, December 22, 2010
CAGAYAN ELECTRIC POWER & LIGHT CO., INC
Important Notice to CEPALCO Customers
Subject: Emergency Power Interruption on Wednesday, December 22, 2010
The Cagayan Electric Power & Light Co., Inc. (CEPALCO) would like to inform all customers that power supply will be interrupted on December 22, 2010 as shown below:
| Reasons: | TO FACILITATE HOTSPOT CORRECTION WORKS AT THE TERMINALS OF THE INCOMING 69-KV DISCONNECTION SWITCH LOCATED AT TAGOLOAN SUBSTATION
|
| Date:
| Wednesday, December 22, 2010
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| Interruption Time: | 6:00 AM – 8:00 AM (2 hours)
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| Affected Areas: | JASAAN-TAGOLOAN 69-KV CIRCUIT: 1. RESINS Inc., Jasaan 2. Cargill Plant, Villanueva 3. SWL Enterprises, Mohon, Tagoloan
TAGOLOAN FEEDER # 1 AREAS: 1. Portion of Natumulan down to Casinglot, Tagoloan; 2. All the Barangays of Bugo, Puerto, Tin-ao, Agusan, Tablon, Baloy, Cugman, Gusa, and greater portion of Lapasan; 3. Portion of Lapasan-Camaman-an road from Recto Ave. towards Limketkai Commercial Center including Grand Caprice Restaurant; 4. All of Osmeña St. and portion of Cogon Market Area including Roxas St. towards portion of JR Borja St.; 5. Upper Gusa, Indahag, Malasag, FS Catanico and Balubal; 6. Agora Market area including Gaabucayan St. and portion of Corrales Extension from Gaabucayan St. up to Recto Avenue; 7. DMPI plantation, MENZI Agri, etc.
TAGOLOAN FEEDER # 2 AREAS: 1. Portion of Natumulan, greater Tagoloan proper, all the Barangays of Baluarte, Pulot, Sugbongcogon, and Gracia, Tagoloan; 2. All the Barangays of Sta. Cruz, Mohon, Sta. Ana, and Sto. Rosario, Tagoloan including Kimaya, Villanueva; 3. All the municipalities and barangays of Villanueva and Jasaan.
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| Power will however be restored immediately without further notice when hotspot correction works are completed earlier than scheduled. |
We hope the affected customers and the public in general
will be guided by this announcement. Thank you.
| Released by: | Ms. Marilyn A. Chavez Senior Manager Customer & Community Relations Dept. |
Wednesday, December 15, 2010
Monday, December 13, 2010
Morning Brief: 13 December 2010
Strong demand for peso bond swap THE PHILIPPINES’ new 2020 and 2035 bonds under a debt swap and sale program attracted solid investor demand, with orders reaching over P200 billion at the end of the offer on Friday, the Bureau of the Treasury said on Friday last week. As part of the offer, the government will also raise fresh cash by selling new 2035 bonds to buy back some local debt on issue, but no new money would go the state coffers after the transactions. The government got offers of around P150 billion for its new 2035 bonds and around P50 billion for the 2020 bonds under the debt swap program, National Treasurer Roberto B. Tan said. It also received bids of more than P20 billion for new 2035 bonds under the cash sale component of the debt issue. "We are very, very satisfied," Mr. Tan told Reuters. "This is a testimony of investor confidence in the country’s sound economic fundamentals." In a text to reporters, Mr. Tan attributed the big demand to a "very positive outlook on the Philippine economy." The government had set the minimum coupon rate at 5.875% for the 2020 bonds and 8.125% for the 2035 bond. On Friday, existing 10-year bonds were quoted at 5.82%, nearly flat from 5.80% the previous day. Yields on the 25-year bonds were at 8.25%, steady from Thursday. Demand surpassed the previous bond exchange in Jan. 2009, when P144.5 billion of five-year and seven-year bonds were issued. The offer period for the government’s bond swap program ended on Friday. The coupon rate for the new bonds will be announced on Dec. 14 and settlement is on Dec. 16. First Metro Investment Corp. (FMIC), HSBC, BPI Capital Corp and state-run Land Bank of the Philippines were joint dealer managers and arrangers of the domestic swap. The swap would help establish a benchmark for long-term financing as the government tries to entice private investors to partner with it on much-needed infrastructure projects to help boost economic growth. FMIC Executive Vice-President Juanchito T. Dispo said via text that "bulk of the bids were for the 25-year bond." "Investors expect that a critical mass will be created from the exchange and it will spur active trading for the 25-year paper, as this will eventually become the most active benchmark," Mr. Dispo said. Mr. Tan said the government would like to issue 25-year bonds on a regular basis. "We will consider 25-year bonds for the next auctions," he said. A trader said by phone that "the high minimum coupon rate triggered the market to go after the 25-year bond," adding "the news of the Treasury to sell 25-year debt papers quarterly next year also triggered demand for the 25-year bonds." -- main report by Reuters |
| Stocks: Week ahead will test the bulls NEW YORK (CNNMoney.com) -- There's a growing sense of optimism on Wall Street about the economy, but this week's busy calendar could test the bull's resolve. Stocks drifted higher last week, with the S&P 500 reaching its highest level since September 2008, while the Nasdaq closed at its highest point since December 2007. The Dow Jones industrial average ended the week little changed. The market has been supported by increasing signs that the recovery is gaining some momentum. Earlier this month, economists at Goldman Sachs (GS, Fortune 500) raised their 2011 forecast for inflation-adjusted U.S. growth to 2.7% from 1.9%, based on gradual improvement in demand. "The market has been doing pretty well," said Alec Young, equity strategist at Standard & Poor's. "The recovery continues nice and steady in the U.S. and the market looks like it could go higher if that stays intact." And 'if' is the key word. Investors will have several economic reports to chew on this week, including readings on inflation, retail sales and new home construction. It's not just the U.S. economy on investors' minds. Europe continues to suffer from debt problems in certain countries, while a report over the weekend showed Chinese inflation continues to rise.
"The tax debate is a big question mark right now," said Dan Greenhaus, chief market strategist with Miller, Taback & Co. There is also speculation that the Fed may scale back its plan to buy $600 billion worth of U.S. Treasuries, he said.
"If they reiterate their commitment to asset purchases, that would be encouraging for the equity market," Greenhaus said, referring to Fed policymakers. Treasury yields spiked last week as investors ditched the safety of U.S. debt. Traders said they will also continue to watch the U.S. dollar, which has been gaining ground in the currency market. A stronger dollar typically weighs on prices for certain commodities and can drive down stocks in the industrial sector. On the docket Monday: There are no market-moving economic or corporate events expected on Monday. Tuesday: Government reports on retail sales and inflation at the wholesale level come out before the market opens. Economists expect U.S. retail sales to have risen 0.8% in November, according to consensus estimates from Briefing.com. Sales jumped 1.2% rise in October. Excluding the automotive sector, sales are forecast to edged up 0.6% in the month. The producer price index for November is expected to gain 0.5%, following a 0.4% increase the month before. Core PPI, which excludes food and energy prices, is forecast to rise 0.3%, following a dip in October. After the market opens, another report is expected to show business inventories grew 0.6% in October. On the corporate front, BestBuy (BBY, Fortune 500) is scheduled to release quarterly results before the market opens, while homebuilder Hovnanian (HOV) reports after the bell. The Federal Reserve's policy statement is due in the afternoon. The central bank is widely expected to hold interest rates near 0%, where they have been since the financial crisis took hold in 2008. Other economic reports on tap before the market opens are the empire manufacturing survey and government data on industrial production and capacity utilization. Thursday: The government's weekly report on initial claims for jobless benefits is expected to show a modest uptick to 425,000 from 421,000 in the prior week. On the housing front, government figures are expected to show that initial construction of single family homes and requests for building permits both rose in November. Housing starts are forecast to have risen to an annual rate of 545,000 from 419,000, while permits are forecast to climb to 570,000 from 550,000 in October. FedEx (FDX, Fortune 500) and General Mills (GIS, Fortune 500) are among the companies scheduled to report quarterly results early Thursday. BlackBerry maker Research In Motion (RIMM) is on deck after the market closes. Friday: An index on leading economic indicators for November is expected to increase 1.2%, after a 0.5% rise the month before. |
Oil Drops as China Orders Banks to Increase Reserves on Inflation Concern Crude oil fell after China took steps to counter inflation, potentially slowing economic growth and fuel demand in the world’s biggest energy-consuming country. Prices slipped 0.7 percent after the People’s Bank of China required lenders to increase financial reserves by 50 basis points starting Dec. 20. Oil rose earlier as China said November crude imports jumped 26 percent and the International Energy Agency boosted its 2011 oil-demand forecast for a third month. “The increase in reserve requirements is probably the first shot across the bow,” said Phil Flynn, a Chicago-based analyst and trader with investment adviser PFGBest. “The market is concerned that the Chinese will follow this move with an interest-rate increase over the weekend.” Crude oil for January delivery declined 58 cents to $87.79 a barrel on the New York Mercantile Exchange, the lowest settlement since Dec. 1. Futures dropped 1.6 percent this week and are up 24 percent from a year ago. |
Sources: Bloomberg, Reuters, www.inquirer.net, www.philstar.com, www.bworldonline.com, www.cnnmoney.com
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145
Rhys Cruz
Junior Researcher
(632) 858-3001
Friday, December 10, 2010
Philippine Markets: 10 December 2010
10 December 2010
USD/PhP: 43.75 (as of 12:00pm) PSEi: 4135.75 - 73.67
USD/JPY: 83.73 PFINC: 957.52 - 17.09
EUR/USD: 1.3246 BDO: 58.90 - 1.50
GBP/USD: 1.5780 BPI: 59.00 - 1.00
PDSTF3M: 1.3308 MBT: 70.50 - 1.65
Prices as of 12:00pm Source: Bloomberg, Reuters
Philippine Interest Rate Outlook
Secondary market rates continued to dive week-on-week as market liquidity remained supportive of short-term government debt. Continue to expect interest rates to move sideways to down next week.
Philippine Equities Outlook
Local equities lost 0.98 percent week-on-week to 4135.75 as profit-taking activities dominated the market during the end of week. Investors remained cautious as European debt woes continued to create uncertainty in the market.
Chartwise, the market's failure to clear the 4,250 levels triggered selling pressure with potential target of 4,000 - 4,050 levels. Failure for these support levels to hold may suggest further downside towards 3,900.
Philippine Peso Outlook
As of 12:00pm, the peso just slightly rose against the US dollar week-on-week as exchange rate continued to trade within the 43.50 - 44.00 levels. Inflows continue to support the peso despite uncertainties on the external front evidenced by major currencies tumbling against the US dollar. Chartwise, exchange rate is still expected to trade within 43.50 - 44.00 range until the end of the year.
Wednesday, December 8, 2010
Oro Chamber Website Link at Businessweek Mindanao Website
Fellow Oro Chamber Members,
Please visit the website of Businessweek Mindanao Website at http://www.businessweekmindanao.com to see our Oro Chamber Website link.
Many thanks and best regards!
Elmer
Morning Brief: 08 December 2010
BTr rejects tenders for 5-yr bonds Investors likely focusing on gov’t bond swap offer By Ronnel Domingo Philippine Daily Inquirer
Had the Treasury awarded fully its T-bonds offer, the interest rate would have jumped to an average of 4.873 percent from a coupon of 4.625 percent. Yesterday’s offer involved a reissue of five-year treasury bonds which were floated last month. Lenders tendered a total of P8.695 billion, which was slightly over the offered volume of P8 billion. The BTr yesterday had the option to limit the increase in yield at 9.6 basis points to an average of 4.271 percent, but this would have trimmed down the amount to be raised to only P425 million. In an interview, Deputy Treasurer Eduardo S. Mendiola said the market was probably focused on the ongoing bond swap offer, through which the BTr would issue new 10-year and 25-year T-bonds in exchange for maturing securities. “It appears that they were not bidding to win,” Mendiola said. “Even the tenders were not in a volume we see regularly during auctions.” Rafael S. Algarra, treasurer of Security Bank Corp., said in a separate interview that yesterday’s bidding results served to show buyers of government securities that the Treasury was not allowing an increase in yield at this time. “We now know that rates won’t be going up,” Algarra said. “The results also showed that the government has enough cash in its hands.” Algarra agreed that the ongoing bond swap offer might have influenced yesterday’s auction. The BTr last week launched this year’s debt exchange program involving at least P60 billion worth of 10-year and 25-year T-bonds, for which lenders have until December 10 to submit their bids. The bond swap for longer-dated debt papers is being made as part of the government’s efforts to extend the maturity of its obligations. In particular, the BTr wants to exchange at least P30 billion worth of new bonds maturing in 2020 and at least P30 billion worth of bonds maturing in 2035 for those that will mature earlier. Mendiola earlier said the government was hoping that as much as P160 billion would actually be exchanged considering the strong market appetite. He said the amount is about a tenth of some P1.6 trillion worth of government securities held by investors eligible for swapping.
According to the Bangko Sentral ng Pilipinas, the gross international reserves rose to $61.3 billion in end-November from the previous record high of $57.15 billion in October. The latest reserves were up 38 percent from only $44.17 billion as of November last year. It was also enough to cover for 10.7 months’ worth of the country’s imports and six times the country’s debts maturing within the short term. In the first trading day of November, the peso broke into the 42-to-a-dollar territory to register its highest level in two-and-a-half years. The appreciation was credited partly to the rise in remittances sent by Filipinos abroad as they sent more money for the coming yearend holidays. It was also attributed to a surge in foreign “hot money” inflows as the bullish outlook on the Philippine and other Asian economies prompted investors to place more funds in emerging countries in the region. While the upward pressure on the peso was fueled by optimism, this has caused discomfort among policymakers who said a currency’s sharp and sudden movement (whether appreciation or depreciation) was disruptive to businesses. The strengthening of the local currency has alarmed some exporters since a sustained rise of the peso could eventually dampen the competitiveness of Philippine-made goods by making these products more expensive. Traders in the foreign exchange market said the BSP had bought more dollars during the month to help ease the appreciation pressures on the peso. Without the central bank’s intervention, they said the peso could have breached the 40:$1 mark. The BSP would not disclose the amount of dollars it had bought from the market. In a statement, BSP Governor Amando Tetangco Jr. said dollars flowing into the country, portions of which were bought by monetary authorities, were due to rising remittances from Filipinos overseas, improved export earnings and a rise in investments by foreigners in the country’s business process outsourcing industry and in portfolio instruments. The BSP said the foreign exchange reserves were also boosted by income from its investments offshore. The central bank’s investments are mostly in US treasuries. The dollar-buying by the BSP is a costly activity and has elicited speculations it would cause the central bank to register a net loss this year. However, the resulting increase in dollar liquidity of the country was hailed by the international financial community, which saw it as improving the credit-worthiness of the Philippines. Standard & Poor’s last month raised the country’s credit-rating from three to two notches below investment grade. It cited the country’s rising GIR, which it said made investors more confident about the Philippines’ ability to pay its dollar-denominated obligations. |
U.S. Stock Rally Wiped Out on Insider-Probe Report, Tax Concerns U.S. stocks erased gains in the final hour of trading, pulling the Standard & Poor’s 500 Index down from a two-year high, after a probe of insider trading reportedly widened and President Barack Obama said he’ll push to overhaul the tax code in two years. 3M Co., JPMorgan Chase & Co. and Hewlett-Packard Co. lost at least 1.5 percent for the biggest declines in the Dow Jones Industrial Average as the 30-stock gauge erased an 89-point rally. Citigroup Inc. gained 3.8 percent after the Treasury sold its remaining stake.New York Times Co. added 4.1 percent after forecasting print-ad revenue improvement. The S&P 500 rose 0.1 percent to 1,223.75 at 4 p.m. in New York after surging 1 percent earlier. The Dow lost 3.03 points, or less than 0.1 percent, to 11,359.16. “It all happened at the same time, taking the market off its highs,” said Michael Nasto, senior trader at U.S. Global Investors Inc., which manages about $2.5 billion in San Antonio. “Investors got a little spooked during Obama’s press conference,” he said. “Then, we had news that the SEC may widen the insider trading probe. That took some wind out of stocks.” The S&P 500 traded for about 1,233.50 at 2:40 p.m. before falling after Obama said he will fight to let the tax cuts for the wealthiest taxpayers expire in two years. Obama defended the deal he struck with Republicans to temporarily extend Bush-era tax cuts as necessary to spare middle-income Americans a tax increase and to spur job creation.
The price of the 30-year bond fell more than 2 points on concern Obama’s plan also includes a payroll tax cut of 2 percentage points to help support the recovery, potentially widening budget deficits. Today’s $32 billion offering of three- year securities lifted the total amount of notes and bonds auctioned by the Treasury to $2.116 trillion, topping last year’s auction record of $2.109 trillion. “The tax cut package is a game changer,” said Jay Mueller, who manages about $3 billion of bonds at Wells Fargo & Co. in Milwaukee. “The tax agreement is more pro stimulus and pro growth than anyone expected going into the debate and changes the odds of a double dip. That is not what the Treasury market wants to see.” The benchmark 10-year note yield climbed 20 basis points, or 0.20 percentage point, to 3.14 percent at 5 p.m. in New York, according to BGCantor Market Data. The price of the 2.625 percent security maturing in November 2020 dropped 1 22/32, or $16.88 per $1,000 face amount, to 95 21/32. |
| . Crude Retreats From 26-Month High After Breaching Upper End of OPEC Range Crude oil tumbled from a 26-month high after breaching the upper limit of what Saudi Arabia’s oil minister, Ali Al-Naimi, said is a satisfactory price for consumers and producers. Oil slipped 0.8 percent after surpassing the $70-to-$90-a- barrel range that al-Naimi announced on Nov. 1. The kingdom had previously indicated a preferred target of $75 a barrel. Futures touched $90.76 earlier today following President Barack Obama’s agreement to a two-year extension of tax cuts introduced by President George W. Bush. “The news today has been bullish, but may not be bullish enough to risk being on the wrong side of the Saudis’ $70-to-$90 range,” saidAdam Sieminski, chief energy economist at Deutsche Bank in Washington. Crude oil for January delivery declined 69 cents to settle at $88.69 a barrel on the New York Mercantile Exchange. The $1.38 gain earlier today took prices to the highest level since Oct. 8, 2008. |
Sources: Bloomberg, Reuters, www.inquirer.net, www.philstar.com, www.bworldonline.com, www.cnnmoney.com
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145
Rhys Cruz
Junior Researcher
(632) 858-3001
Tuesday, December 7, 2010
Scheduled Power Interruption on Saturday, Dec. 11 & Monday, Dec. 13, 2010 Due to Switching Works
CAGAYAN ELECTRIC POWER & LIGHT CO., INC
Important Notice to CEPALCO Customers
Subject: Scheduled Power Interruption on Saturday, Dec. 11 &
Monday, Dec. 13, 2010 Due to Switching Works
The Cagayan Electric Power & Light Co., Inc. (CEPALCO) would like to inform all customers that power supply will be interrupted on December 11 & 13 [Sat & Mon], 2010 as shown below:
| Reasons: | TO FACILITATE THE RELOCATION OF A 69KV POLE ALONG MACAPAGAL AVENUE AND LINE MAINTENANCE WORKS IN THE AREA
|
| Dates:
| Saturday, December 11, 2010; and Monday, December 13, 2010
|
| Interruption Time: | 6:00 AM – 7:30 AM (1 hour and 30 minutes)
|
| Affected Areas: | CARMEN 3 AREAS: 1. Portions of Carmen: along vicinities of Villarin St. towards portion of Canitoan-Pagatpat Road; including St. Mary’s Academy (formerly Cathedral School of Technology), Golden Village, City Hospital-DOH Area, COWD reservoir and Seriña St. from Villarin St. down to Madonna and Child Hospital. 2. M. Suniel St. from Villarin St. down towards portion of Mabolo St.; including Matilde Neri St., Dabatian St. and Cagayan de Oro College area; and; portion of Lirio St. area. 3. Portions of Upper Carmen towards Dagong including SM CITY; PRYCE HOTEL; SPUM & SEARSOLIN.
PUEBLO 2 AREAS: 1. Portion of Upper Carmen, Upper Balulang and all of Brgy. Lumbia including; PNR Sawmill, Shop and transmitter; Pueblo de Oro, Camella Homes, Xavier Estates, Xavier Heights, Xavier High School, La Buena Vida, Frontiera and Montana subdivisions; CAA-BAT Lumbia Airport & Rio Verde.
|
| Power will however be restored immediately without further notice when switching works are completed earlier than scheduled. |
We hope the affected customers and the public in general
will be guided by this announcement. Thank you.
| Released by: | Ms. Marilyn A. Chavez Senior Manager Customer & Community Relations Dept. |
Philippine Markets: 07 December 2010
07 December 2010
USD/PhP: 43.555 - 0.195 PSEi: 4197.92 - 25.20
USD/JPY: 82.63 PFINC: 975.30 - 5.30
EUR/USD: 1.3314 BDO: 60.00 - 0.30
GBP/USD: 1.5759 BPI: 60.00 unch
PDSTF3M: 1.4635 MBT: 72.85 - 1.35
Prices as of 4:00pm Source: Bloomberg, Reuters
PH stocks fall in profit taking
By Doris Dumlao
Philippine Daily Inquirer
Local stocks tumbled on Tuesday as investors were tempted to pocket gains from an earlier market rebound.
The main-share Philippine Stock Exchange index shed 25.20 points or 0.6 percent to close at 4,197.92.
The decline was led by the counter for holding firms which fell by 1.2 percent. Only the mining/oil index sector stayed afloat.
There were only 51 advancers as against 78 decliners and 46 unchanged stocks.
Value turnover stood at P5.78 billion.
Among the day's decliners were Alliance Global Group Inc., Aboitiz Power Corp., Metropolitan Bank & Trust Co., Philippine Long Distance Telephone Co., Ayala Corp., Universal Robina Corp., Banco de Ooro Unibank, Ayala Land Inc., Aboitiz Equity Ventures Inc., Manila Water Inc., Atlas Consolidated Mining Development Corp. and Cebu Air Inc.
On the other hand, Energy Development Corp., Manila Electric Co., Philex Mining Corp., DMCI Holdings Inc. and Globe Telecom Inc. bucked the downturn.
Sentiment was likewise sluggish overseas, with the Dow Jones Industrial Index falling by 19.9 points or 0.17 percent to 11,362.19 overnight.
Saturday, December 4, 2010
"ACCEPTING CHALLENGES" - By: Pres. Tony Uy
"ACCEPTING CHALLENGES"
DIR ALICIA EUSENA OF DTI REGION X, IMMEDIATE PAST PRESIDENT RALPH PAGUIO, FELLOW CHAMBER TRUSTEES, OFFICERS AND MEMBERS. PARTNERS, FRIENDS, LADIES AND GENTLEMEN, GOOD EVENING!
AFTER SERVING OROCHAMBER IN VARIOUS CAPACITIES FOR MORE THAN A DECADE, I AM HONORED TONIGHT TO ACCEPT THE RESPONSIBILITY BESTOWED UPON ME AS THE NEW CHAMBER PRESIDENT.
AFTER SUCCESSFULLY HOSTING THE 19TH MINDANAO BUSINESS CONFERENCE LAST SEPTEMBER, IT IS UNNERVING FOR ME TO THINK THAT I’M UP TO A MORE CHALLENGING YEAR IN 2011. INDEED, IT WILL BE A GREAT TASK FOR ME TO CAPITALIZE ON WHAT OUR CHAMBER HAS ACCOMPLISHED AND STILL BE ABLE TO DO MORE TO BENEFIT OUR MEMBERS. SO WITH MUCH OPTIMISM, I AM READY TO FACE THE CHALLENGE. I BELIEVE THAT THE ORO CHAMBER WILL CONTINUE TO GROW AS THE ULTIMATE VOICE OF BUSINESS IN NORTHERN MINDANAO.
THE FIRST ITEM IN MY ACTION AGENDA IS TO SUPPORT AND CONTINUE THE GOOD PROGRAMS AND PROJECTS INITIATED BY THE PREVIOUS PRESIDENTS PARTICULARLY ON MEMBERSHIP DEVELOPMENT AND RETENTION, BMBE, SMALL AND MEDIUM ENTERPRISE DEVELOPMENT PROGRAM, BUSINESS REFERRAL AND MATCHING, EFFECTIVE TAXATION AND LABOR RELATIONS, POWER FORUM, ICT AND OUR VERY OWN OROBEST EXPO. OF COURSE, WE WILL CONTINUE TO CONDUCT THE MONTHLY FREE-OF-CHARGE GOOD BUSINESS FORUM FOR MEMBERS, TECHNICAL TRAININGS AND SECTORAL MEETINGS TO GATHER ISSUES AND CONCERNS FOR ACTION.
ON Business Development and Promotion
WE WILL BE CONDUCTING TIMELY SEMINARS, TRAININGS AND ECONOMIC BRIEFINGS. WE WILL REINFORCE OUR BUSINESS ADVISORY SERVICES IN THE FIELDS OF BUSINESS REGISTRATION, BUSINESS PLAN PREPARATION, PROJECT DEVELOPMENT, KNOWLEDGE MANAGEMENT AND MANY MORE.
WE WILL REKINDLE THE VARIOUS PARTNERSHIP AGREEMENTS WITH LOCAL AND FOREIGN ORGANIZATIONS ESPECIALLY WITH TAINAN CHAMBER, CANADIAN INTERNATIONAL DEVELOPMENT AGENCY, AUSAID OF AUSTRALIA, JETRO OF JAPAN GTZ OF GERMANY AND POSSIBLY FORGE NEW STRATEGIC COOPERATION WITH ASSOCIATIONS IN OTHER ASIAN COUNTRIES.
OTHER THAN SHOWCASING THE PRODUCTS AND SERVICES OF MEMBERS AND PARTNER ORGANIZATIONS THRU THE OROBEST EXPO, WE WILL ALSO TRY TO ESTABLISH A MINI-SHOWCASE AT THE OROCHAMBER OFFICE WHERE MEMBERS’ ACTUAL OR SAMPLE PRODUCTS CAN BE READILY SEEN BY VISITING GROUPS.
ON Chamber Relations & Policy Advocacy
TO ADDRESS YOUR VARIOUS CONCERNS, WE ENCOURAGE YOU TO WRITE US FOR WHATEVER ISSUE/S YOU MAY HAVE SO WE CAN PROPERLY REPRESENT YOU EITHER IN A PUBLIC OR PRIVATE FORUM. WE WOULD APPRECIATE IT IF YOU WRITE OR VISIT US MORE OFTEN TO AIR YOUR CONCERNS.
DURING MY TERM, I WOULD ALSO LIKE TO INCREASE OUR MEMBERSHIP BASE BY 15%. HENCE, I AM ENCOURAGING INACTIVE MEMBERS TO BE INVOLVED AGAIN. I AM ALSO CHALLENGING EVERYONE HERE TONIGHT TO BRING IN AT LEAST ONE FRIEND TO BECOME A MEMBER BECAUSE THE MORE MEMBERS WE HAVE, THE STRONGER OUR VOICE WILL BE ON LAWS AND POLICIES AFFECTING TRADE AND COMMERCE ESPECIALLY ON POWER, TAXES AND WAGE.
IN CLOSING, I WOULD LIKE TO EMPHASIZE THE VALUE OF UNITY. OUR INTERESTS MAY BE VARIED BUT FOR AS LONG AS WE ARE ONE IN OUR ADVOCACY THAT WILL BENEFIT THE COUNTRY’S BUSINESS COMMUNITY. WE SHOULD ALL BE WORKING TOWARDS OUR GOAL OF PROPELLING OUR CHAMBER SO THAT ITS VOICE WILL BECOME EVEN STRONGER AND COMPELLING. TOGETHER, LET US CREATE AND SEIZE OPPORTUNITIES TO MAINTAIN OUR REGION’S STATUS AS THE LARGEST ECONOMY IN MINDANAO AND WHO KNOWS, WITH THE SAME DYNAMISM AND ENTHUSIASM, WE WILL BE ABLE TO PROPEL OUR REGION AS THE BIGGEST ECONOMY IN THE COUNTRY SOON.
THANK YOU SO MUCH AND GOOD EVENING!
Philippine Markets: 03 December 2010
03 December 2010
USD/PhP: 43.95 (as of 12:00pm) PSEi: 4176.48 + 27.58
USD/JPY: 83.67 PFINC: 966.23 + 16.84
EUR/USD: 1.3204 BDO: 59.35 - 0.25
GBP/USD: 1.5593 BPI: 58.05 + 1.05
PDSTF3M: 1.6667 MBT: 73.50 + 2.55
Prices as of 4:00pm Source: Bloomberg, Reuters
Philippine Interest Rate Outlook
Secondary money market rates continued to plummet as market remained very liquid evidenced by historic low yields during recent treasury bill auction. Expect rates to move sideways next week.
Philippine Equities Outlook
Local shares rose 3.03 percent week-on-week to 4176.48 as investors took advantage of the low prices to bargain hunt. Investors took cue from improving sentiments overseas.
Chartwise, the week's close at 4176.48 implies a test of the 4,200 - 4,250 levels in the near term.
Philippine Peso Outlook
The local currency rose against the dollar week-on-week as remittances from Filipinos working overseas continued to flow . Another factor that contributed to the currency's gain is the flow of hot money
into the local capital markets.
Chartwise, current movement of exchange rate suggests that the market may range between the 43.50-44.00 leves in the near-term.
Thursday, December 2, 2010
Morning Brief: 02 December 2010
Swap to involve at least P60B in new bonds -- gov’t THE GOVERNMENT will issue at least P60 billion of 10-year and 25-year bonds in exchange for existing bonds as it harnesses investor interest to lengthen its maturity profile and deepen the local debt market. Asia’s largest sovereign issuer of foreign debt said that as part of the swap offer, which will be open from today until Dec. 10, it would also buy back some bonds on issue using funds raised from selling the new 2035 bonds. No new funds would be raised in the deal. "This liability management exercise aims to establish a benchmark for long-term financing to support government initiatives promoting public-private partnership for infrastructure and economic development," Deputy Treasurer Eduardo S. Mendiola said in a statement. The government will issue a minimum P30 billion in new 2020 bonds in exchange for papers maturing between 2011 and 2019, and P30 billion of new 2035 bonds in exchange for bonds due to mature between 2011 to 2034. One trader said the government would have to offer attractive yields to get a strong response given interest rates were expected to rise next year. "Right now, how much premium are we expecting? When I go around asking insurance companies, they want above 8%," the trader said. The Philippines has been capitalising on a global shift by investors to emerging markets to lengthen its maturities, and it also wants to cut foreign exchange exposures by increasing the share of domestic debt in total bond sales. In September, it issued almost $3.2 billion in new 2021 and reopened 2034 US dollar bonds in a debt swap and sale. First Metro Investment Corp., HSBC, BPI Capital Corp. and state-run Land Bank of the Philippines are joint dealer managers and arrangers of the domestic swap. Finance Secretary Cesar V. Purisima has said the government wants to issue 25-year bonds regularly after the debt swap to make long-term funding more accessible as the country looks to encourage private investment in infrastructure projects. -- Reuters
TREASURY bill rates, which hit record lows last Tuesday, are bound to correct, the Bangko Sentral ng Pilipinas (BSP) said. “Situations of very low or very high levels of an economic price that is market determined would not persist for very long. Market forces will help correct such situations,” BSP Governor Amando M. Tetangco, Jr. said in an email to BusinessWorld yesterday when asked if the very T-bill rates were market-distorting. |
U.S. Stocks Rise Most in 3 Months as Economy Improves U.S. stocks rallied, sending benchmark indexes toward their biggest gains in three months, amid improving economic data and speculation of a larger European financial rescue. Schlumberger Ltd. and Dow Chemical Co. rallied more than 3.8 percent as commodity prices gained. United Technologies Corp. and General Electric Co. rose at least 2.2 percent as Deutsche Bank AG said they may benefit from Airbus SAS’s plan to develop A320 aircrafts with new engines. Motorola Inc. jumped 4.6 percent after detailing plans to split into two companies in January. Microsoft Corp.climbed 3.7 percent after forecasting 2011 may be “biggest year ever” for its Xbox division. The Standard & Poor’s 500 Index surged the most since Sept. 1 on a closing basis, adding 2.2 percent to 1,206.41 at 2:50 p.m. in New York. The Dow Jones Industrial Average gained 259.2 points, or 2.4 percent, to 11,265.2 as all 30 stocks rose.
The yield on benchmark note rose for the first time in four days after an industry report showed the U.S. added more jobs than forecast in November, signaling a labor market recovery is under way. The Federal Reserve said the economy gained strength in 10 of its 12 regions as hiring improved, manufacturing expanded and retailers anticipated a stronger holiday shopping season. U.S. stocks rallied, sending benchmark indexes toward their biggest gains in three months. “Stocks are up big, peripheral bond markets are doing better and people are feeling more optimistic that the euro is not coming unraveled, which is weighing on the bond market,” said Jay Mueller, who manages about $3 billion of bonds at Wells Fargo Capital Management in Milwaukee. “The news and data show there are moderate reasons for optimism as we have gone from slow growth to somewhat faster growth.” The benchmark 10-year yield rose 17 basis points to 2.97 percent at 5:02 p.m. in New York, according to BC Cantor Market Data, touching the highest since July 30. The yield fell to 2.75 percent yesterday, the lowest level since Nov. 23. The 2.625 percent security due in November 2020 fell 1 13/32, or $14.06 per $1,000 face amount, to 97 3/32. |
| Crude Oil Gains as Chinese Economic Growth Counters Europe Debt Concern Crude rose to the highest level in almost three weeks on greater-than-forecast growth in U.S. private employment and Chinese manufacturing and on signals the European Central Bank will act to prevent the spread of the region’s debt crisis. Prices surged 3.1 percent as companies in the U.S. boosted payrolls the most since November 2007, according to figures from ADP Employer Services. Chinese manufacturing expanded at the fastest rate in seven months. Futures reached the day’s high after Goldman, Sachs & Co. said oil will average $110 a barrel in 2012, up from a forecast $100 a barrel next year. “As the global economy goes, so goes oil,” said Andre Julian, chief financial officer and senior market strategist at OpVest Wealth Management in Irvine, California. “The economic numbers in China and elsewhere today have been very strong and point to accelerating growth.” Crude oil for January delivery increased $2.64 to $86.75 a barrel on the New York Mercantile Exchange, the highest settlement price since Nov. 11. The contract is up 11 percent from a year ago. |
Sources: Bloomberg, Reuters, www.inquirer.net, www.philstar.com, www.bworldonline.com, www.cnnmoney.com
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145
Rhys Cruz
Junior Researcher
(632) 858-3001
Wednesday, December 1, 2010
Morning Brief: 01 December 2010
Treasury bill rates drop to all-time lows Treasury bill rates declined during Tuesday’s auction—the last government offering for the year—and hit a new all-time low as banks awash in cash scrambled for the virtually risk-free securities. The rate for the bellwether 91-day T-bill only reached 0.775 percent from the previous rate of 1.48 percent. This was the first time the interest rate for a government debt security fell below one percent. Tenders for the three-month securities reached P4.1 billion, about four times the government’s debt offering of only P1 billion. The 182-day bill fetched a rate 1.65 percent—down from the previous rate of 1.983 percent. Volume of bids for the six-month debt instruments hit P8.33 billion, exceeding the government’s offering of P2.5 billion. Also, the rate for the 364-day bill settled at 2.383 percent from 2.394 percent of the previous auction. Tenders for the one-year bill reached P7.96 billion—over twice as much as the government’s offering of P3.5 billion. “There are so much funds in the system. Banks scrambled for the T-bills given that it is the last auction for the year,” National Treasurer Roberto Tan said in a briefing after the offering. Jonathan Ravelas, market strategist for Banco de Oro, the low Treasury rates were due to the substantial liquidity in the system and renewed risk aversion resulting from Europe’s debt woes. Ravelas said some foreign investors decided to shift funds from the equities market into safer havens, including government securities and the dollar. “The drop in interest rates is a function of huge liquidity. Moreover, uncertainties in the international front brought about by the debt crisis in Europe is pushing investors to assets considered much less risky,” Ravelas said. According to Tan, another reason for the low interest rates is the low inflation outlook. The Bangko Sentral ng Pilipinas expected annual inflation for November to range between 2 and 2.9 percent. Based on this projection, inflation in the first 11 months of the year could settle anywhere between 3.8 to 3.9 percent—closer to the lower end of the official cap set at between 3.5 and 5.5 percent. The BSP believes that the low inflation environment may remain over the short term. As a result, there would be no reason for banks to seek high yields from government securities, officials said.
THE BUREAU of Internal Revenue (BIR) has all but abandoned this year’s collection goal as it likely missed its target last month. "I don’t know if [we were] able to reach it (the November target) because the goal is too high," BIR Commissioner Kim S. Jacinto-Henares said in a telephone interview yesterday. She did not provide estimates but noted that last month’s P86.03-billion goal was nearly 23% more than the actual take of around P70 billion a year earlier. November data will be released by Dec. 15, Ms. Jacinto-Henares said. The BIR -- which accounts for about two-thirds of the state’s tax revenues -- remains behind target with collections at P670.8 billion as of October, below the P700-billion goal for the period. Blame has been laid on the government’s adoption of a higher 2010 economic growth target -- 5.0-6.0% from 2.6-3.6% previously -- which meant that the BIR’s collection goal had to be raised to P860.4 billion from P830.4 billion. "The P860.4-billion [2010 goal] is no longer possible ... [but] P830 billion is doable," Ms. Jacinto-Henares said. She explained that to meet the full-year target, the BIR needed to collect an extra P30 billion on top of its P73.78-billion goal for December. "That would be very hard [to meet], that’s why I say the P860-billion target, to be able to be met, really needs a stretch [by the BIR]," she said. Missing the November goal would add pressure to the budget deficit as the Customs bureau, the country’s second main revenue agency, has already said it may have missed its P26.93-billion target last month. |
| U.S. Stocks Decline on European Debt Concern; Google Slumps on EU Probe U.S. stocks declined, preventing the third straight monthly advance for the Standard & Poor’s 500 Index, amid concern that Europe’s government debt crisis will worsen and as Google Inc. faced an antitrust probe. Google fell 4.5 percent, the most since July, after European Union antitrust regulators began an investigation. EBay Inc. dropped 3.6 percent after the stock’s rating was cut at Piper Jaffray & Co. Bank of America Corp. slumped 3.2 percent, the most in the Dow Jones Industrial Average, as the cost to insure its debt against default climbed to a 16-month high. The S&P 500 fell 0.6 percent to 1,180.55 at 4 p.m. in New York, below its end-of-October level of 1,183.26. The Dow lost 46.47 points, or 0.4 percent, to 11,006.02. Stocks briefly erased declines as President Barack Obama suggested he’s willing to compromise with Republicans on extending tax cuts.
Thirty-year bond yields pared declines after reaching the lowest in three weeks as the Federal Reserve bought more U.S. securities as part of its $600 billion plan to bolster the economy. Industry reports showed consumer confidence rose and Midwest regional businesses expanded. The dollar reached a 10- week high versus the euro as Portuguese, Italian and Spanish government bonds slumped, encouraging demand for a refuge. “The longer end has come off some as we’ve had a good rally the last few days and with economic news better, and month-end buying out of the way, investors are becoming more defensive when it comes to duration,” said Thomas Tucci, head of U.S. government bond trading at Royal Bank of Canada’s RBC Capital Markets unit in New York, one of 18 firms that trade directly with the Fed. “The economic news, while not great, is not as weak as it’s been. So we are seeing people take profits.” Two-year note yields fell six basis points to 0.46 percent at 5:10 p.m. in New York, touching the lowest since Nov. 23, according to BGCantor Market Data. Benchmark 10-year yields declined two basis points to 2.8, after falling as much as seven basis points, paring the monthly increase to 14 basis points. Thirty-year bond yields fell three basis points to 4.11 percent, after touching the lowest since Nov. 5. The decline reduced the so-called long bond’s monthly yield increase to 13 basis points. |
| Oil Falls as Heating Fuel Drops, European Debt Woes Signal Lower Demand Oil fell, following heating oil lower, as concern the European Union may have to bail out more member states pushed the euro to the lowest level in 10 weeks. Crude dropped more than $1 a barrel in the last half hour of floor trading, led by declines in heating oil before the expiration of the December contract today. The cost of insuring Portuguese and Spanish debt against default climbed to records yesterday after Ireland accepted a bailout package. “Oil has fallen on the possibility that the problems that are going on in Europe will spread to Portugal and Spain and maybe Italy and Belgium,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. Oil for January delivery dropped $1.62, or 1.9 percent, to settle at $84.11 a barrel on the New York Mercantile Exchange. Prices rose 3.3 percent this month, the third consecutive increase, and are up 6 percent this year. |
Sources: Bloomberg, Reuters, www.inquirer.net, www.philstar.com, www.bworldonline.com, www.cnnmoney.com
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145
Rhys Cruz
Junior Researcher
(632) 858-3001
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