Shipments hit record high BRISK TRADE, mainly with the country’s neighbors, drove Philippine merchandise exports to hit a record high in terms of value in August and to rise at the fastest pace in five months, fueling optimism that the official export growth target for the year will be met. The sector’s year-on-year growth of 36.6% that month was its best performance since March. Goods shipped in August were valued at $4.7 billion, a record high in absolute terms, according to the National Statistics Office (NSO). Month on month, exports grew 5.3% from July’s $4.5 billion. Aggregate merchandise exports rose by 37.3% to $32.97 billion in the eight months to August from the $24.01 billion recorded in the same period last year. The government is aiming for a full-year export growth of 15% to $43.1 billion in 2010. Electronic products, which accounted for 63% of the total, rose 45.3%, year on year, to $2.989 billion in August. While that annual growth rate was slower than the 49.4% recorded in July, electronic exports rebounded to a 4.5% month-on-month growth in August from a 1.5% contraction the previous month. Apparel and clothing accessories, which made up 3.8% of total receipts, was the second top earner with earnings rising 31.5% to $180.9 million. Economists and industry officials agreed that demand within the region has been driving growth, taking up the slack in orders from still-stuttering developed markets. "The 36.6% growth is way above expectations... [Export revenues] are the highest ever. This is attributed to a very strong performance in... East Asia and the ASEAN markets," University of Asia and the Pacific (UA&P) economist Victor A. Abola said. Singapore was the Philippines’ top export market for the third month in a row, accounting for 20.3% of the total in August at $962.28 million, up 278.4% from the same month last year. It was followed by the US, with a 13.5% share at $641.74 million, up 2.2%; Japan with 12.7% at $603.68 million, up 9.1%; China with 12.4% at 589.39 million, up 147.1%; and Hong Kong with 8.5% at $404.27 million, up 38.9%. The remaining markets in the top 10 were South Korea with $196.09 million; Taiwan, $182.24 million; the Netherlands, $160.71 million; Thailand, $156.99 million; and Germany, $153.58 million. By economic bloc, Northeast Asia was the top market, accounting for 41.7% at $1.978 billion of total shipments, up 44% from last year. Southeast Asia followed with revenues from this market amounting to $1.3 billion, up 130.8% from a year ago and accounting for 27.6% of the total. Exports to the European Union accounted for 11.3% with $536.21 million -- a 25.7% decline from last year. Under the enhanced Electronic Business Name Registration System (eBNRS), entrepreneurs would spend a longer time waiting in line than actually registering a business name and making the necessary payments for it. “The entire transaction will take only around 15 minutes. The actual processing takes only three minutes, and the waiting time usually takes 10 minutes. So it’s really the waiting that makes the transaction time long, but still, it’s only 15 minutes,” Trade Secretary Gregory Domingo told reporters Monday. According to a random time-and-motion study the Department of Trade and Industry conducted in various parts of the country, Metro Manila averaged 278 business name applications in a day, with total processing time placed at 14.35 minutes. In areas with fewer applications, the average transaction time is even shorter, ranging from 5 to 12 minutes. In Albay, for example, where there are only around four business name applications in a day, total transaction time lasts only five minutes. The average transaction time for applications in Laguna lasts 10-15 minutes for around 10 transactions daily, in Rizal 10 minutes each for 37 transactions, in Aklan 12 minutes for nine applications, and in Antique 12-15 minutes for 12 applications. Another feature of the eBNRS is the registration of all branches of one company all in one go and the registration of a business in a different locality in the DTI office nearest to the business owner. “The new system gives businessmen less hassle in doing business in the country,” Domingo said. “Our aim in automation is to lessen people handling the process and allow technology to hasten transaction. In a way it makes government transaction transparent and prevents corruption in the workplace.” The eBNRS would be made available online, including payments, starting next week, he said. Besides the eBNRS, he said the DTI is also working on the Philippine Business Registry (PBR), a one-stop shop for businesses that want to get mayor’s permit, and registrations and licenses from the DTI, Securities and Exchange Commission, and other agencies. The PBR could also be used to apply for Pag-Ibig, Social Security System, and Philhealth benefits. “Businesses won’t have to go to each of the agencies in order to register. It’s still under development because we don’t want any glitches to happen once we launch it. We’re hoping to finish this before the end of the year,” he said. |
U.S. Stocks Advance as Fed Indicates It's Ready to Buy Bonds U.S. stocks rose, erasing earlier losses and sending benchmark indexes to five-month highs, as Federal Reserve policy makers indicated they are ready to pump more cash into the economy to protect the recovery. Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs Group Inc. helped lead a recovery by the Standard & Poor’s 500 Index after minutes of the Fed’s Sept. 21 meeting showed the central bank was ready to ease monetary policy “before long.” King Pharmaceuticals Inc. jumped 39 percent, the most in 11 years, after agreeing to be bought by Pfizer Inc. The S&P 500 climbed 0.4 percent to 1,169.77 at 4 p.m. in New York after sliding 0.8 percent earlier. The Dow Jones Industrial Average rose 10.06 points, or 0.1 percent, to 11,020.40 after earlier tumbling as much as 97 points. Both gauges closed at the highest levels since May.
Government debt initially pared losses after minutes of the Fed’s last meeting showed policy makers focused on purchases of Treasuries, a move called quantitative easing, and boosting inflation expectations to add economic stimulus. Yields had climbed after the U.S. sold $32 billion of three-year notes, drawing the weakest demand since February. “Where does the Fed have capacity to buy? The 6- to 10- year sector, so that’s where they are going to do the bulk of their purchases when they ultimately do a second round of quantitative easing,” said Ira Jersey, an interest-rate strategist at Credit Suisse Group AG, one of 18 primary dealers that trade directly with the Treasury. “The market certainly doesn’t think that” 30-year bonds will be purchased, he said. The yield on the 30-year bond rose seven basis points, or 0.07 percentage point, to 3.82 percent at 5:01 p.m. in New York, according to BGCantor Market Data. The 3.875 percent security due in August 2040 fell 1 9/32, or $12.81 per $1,000 face amount, to 100 31/32. Two-year note yields increased two basis points, breaking a string of eight daily losses, to 0.36 percent after earlier reaching a record-low 0.327 percent. Ten-year yields increased four basis points to 2.43 percent. They have dropped 14 basis points since the Fed said Sept. 21 it was willing to ease monetary policy further. |
Oil Trades Near $82 After Falling on Speculation U.S. Inventories Gained Crude oil traded near $82 a barrel after falling for a second day in New York on speculation that U.S. inventories increased to a three-month high last week. Crude dropped yesterday before a U.S. Energy Department report, which may show a gain of 1.4 million barrels to 362.3 million, according to the median estimate of 17 analysts in a Bloomberg News survey. Saudi Arabian Oil Minister Ali al-Naimi, whose country is the largest OPEC producer, called the global market “well-balanced” earlier this week. “Demand for petroleum products is weak and inventories are high,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York. OPEC also is signaling “it will keep quotas unchanged, and it’s bearish in a sense that it helps maintain an overall supply surplus in the market,” he said. Crude oil for November delivery was at $81.74 a barrel, up 7 cents, on the New York Mercantile Exchange at 9:39 a.m. Sydney time. The contract, which reached a five-month high of $84.43 last week, declined 0.7 percent yesterday to $81.67. |
Sources: Bloomberg, Reuters, www.inquirer.net, www.philstar.com, www.bworldonline.com, www.cnnmoney.com
Jonathan Ravelas
Chief Market Strategist
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Rhys Cruz
Junior Researcher
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