BSP cuts remittance growth forecast By Michelle Remo, Doris Dumlao Philippine Daily Inquirer MANILA, Philippines—The Bangko Sentral ng Pilipinas has cut its remittance growth projection for 2011, taking into account the unrest in North Africa and the Middle East (Mena), as well as the disasters in Japan, and their effect on the employment situation of Filipinos abroad. Still, BSP officials said the reduction would be minimal as demand for Filipino labor in other parts of the globe would remain robust. From an earlier forecast of 8 percent, remittances are now expected to rise by 7 percent this year to $20.1 billion from $18.8 billion last year, the BSP said. The decline in growth rate was attributed to a slowdown in deployment in late 2010. But an economist at HSBC believes otherwise. Sherman Chan, the British banking giant’s expert on Southeast Asia, said growth in remittances could bounce back from a 10-month low seen in February, maintaining a full-year pace of 8.5 percent this year despite the problems overseas. “Remittances in 2011 are expected to remain resilient amid possible downside risks, such as the turmoil in the Mena region and natural disasters in Japan,” BSP Governor Amando Tetangco Jr. said in a message to economists, bankers and the business community during an economic forum held Friday. His message was read by BSP Deputy Governor Nestor Espenilla Jr., who attended the event. BSP officials said that although the projected growth rate had been reduced, the amount of cash sent in through official channels by workers abroad could still reach a new historic high. They noted that last year’s amount was the highest ever recorded. They also said that a 7-percent rise to $20.1 billion would be enough to boost consumption of Filipino households and help drive the overall economy. Some Filipinos working abroad lost their jobs due to the political unrest in some oil-producing countries and the disasters in Japan. This development dampened expectations on remittances to the Philippines. However, Tetangco stressed that remittances could still grow by an encouraging rate this year. He said that any adverse effects on overseas communities would be minimal. Also, an increase in demand for Filipino labor in other parts of the globe would offset thedecline in employment in strife-torn and disaster-stricken areas. “The natural calamities in Japan may even encourage greater demand for [overseas Filipino] workers once reconstruction efforts commence,” Tetangco said. |
Earnings deluge awaits investors NEW YORK (CNNMoney) -- After a rocky start, earnings get into high gear this week. Wall Street will get quarterly results from 110 members of the S&P 500, ranging from industrial titans like General Electric (GE, Fortune 500) to fast food maker McDonald's (MCD, Fortune 500). Investors, so far, have gotten mixed messages from this quarter's earnings season. While some companies like JPMorgan Chase were able to top Wall Street estimates with their results last week, any good news was outweighed by mediocre results from Alcoa, Bank of America and Google. All three major indexes have retreated slightly as poor earnings and rising oil prices dragged down investor sentiment. "I've been surprised that we've seen as many companies miss expectations, so it's been somewhat disappointing," said Kate Warne, chief investment strategist with Edward Jones.
"Traders have been on a witch hunt in the technology sector since the Japanese earthquake," said Daniel Morgan, portfolio manager with Synovus Trust Company. "The whole sector has struggled with concerns about supply chain problems and concerns sales may take a hit." Morgan said he expects Apple's earnings weigh heavily on the market, in part because of how exposed the company is to consumer spending with its iPhones, iPads and other household computers. Financials are also a big sector reporting this week. Investors will get results from brokerages Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500), from banking giant Citigroup (C, Fortune 500), and commercial bank Wells Fargo (WFC, Fortune 500). While inflation has remained tame, Prudential's Krosby said investors should watch to see rising energy and material prices have impacted company earnings and if any CEOs make comments about passing costs to consumers. Despite the dozens of companies reporting, volume this week is expected to be light. Markets will be closed on Friday in observance of Good Friday and the Jewish holiday of Passover will start on Monday. On the Docket: Monday -- Former Dow component and banking conglomerate Citigroup will report its results before the bell. Analysts polled by Thomson Reuters expect Citi to earn 9 cents a share versus the 15 cents a share it earned a year ago. Other names reporting on Monday include newspaper chain Gannett (GCI, Fortune 500), pharmaceutical company Eli Lilly (LLY, Fortune 500) and chip maker Texas Instruments (TXN, Fortune 500). Tuesday -- Before the open, Wall Street giant Goldman Sachs will report its results. Analysts expect to see Goldman's profits fall to 82 cents a share compared with the $5.59 it reported a year ago. After the bell, technology giants Intel and IBM will report their results. Analysts are looking for Intel to earn 46 cents a share, while IBM is expected to post a profit of $2.30 a share. Also reporting after the bell is Internet search portal company Yahoo! (YHOO, Fortune 500). Along with earnings, the Commerce Department will release March housing starts and building permits data at 8:30 a.m. ET.
Other names to report on Wednesday include Dow components AT&T (T, Fortune 500), Travelers (TRV, Fortune 500) and United Technology (UTX, Fortune 500), metal and mining giant Freeport McMoRan (FCX, Fortune 500), chipmaker Qualcomm (QCOM, Fortune 500) and Wells Fargo. On economic data, Wall Street will get existing home sales from the National Association of Realtors at 8:30 a.m. ET. Economists are looking for existing home sales to rise 5 million annualized units, according to Briefing.com Thursday -- The biggest name to report will be industrial conglomerate General Electric (GE, Fortune 500), which has been under pressure this past quarter due to the Japanese earthquake and subsequent nuclear disaster. Analysts expect GE to report earnings of 28 cents a share. Investors will also get earnings from asset managerBlackRock (BLK, Fortune 500), fast food giant McDonald's (MCD, Fortune 500), investment bank Morgan Stanley (MS, Fortune 500) and chemical company DuPont (DD, Fortune 500) among others. For economic data, the Labor Department will release weekly jobless claims figures at 8:30 a.m. ET, with the Philadelphia Federal Reserve releasing its April activity index at 10 a.m. ET. Economists expect weekly claims to fall to 390,000 from last week's 412,000 claims while the Philly Fed survey is expected to drop to 32.9 from last month's 43.4. Friday -- U.S. markets are closed. No major companies will report earnings and no economic data will be released. |
Crude Oil Declines as Saudi Arabia Says Market Is ‘Oversupplied’ Oil declined for the first time in four days in New York after Saudia Arabia, the world’s biggest exporter of the fuel, said the global market has more than ample supplies of crude. Futures slipped as much as 0.5 percent after Saudi Arabia’s Oil Minister Ali al-Naimi said yesterday that the global “market is oversupplied.” The kingdom has said it will make up for any output lost as a result of the Libyan conflict, which erupted in mid-February. Prices dropped 2.8 percent last week amid speculation that rising energy prices will curb economic expansion. Crude oil for May delivery slid as much as 56 cents to $109.10 a barrel, in electronic trading on the New York Mercantile Exchange. The contract was at $109.18 at 8:45 a.m. Sydney time. It gained $1.55, or 1.4 percent, to settle at $109.66 on April 15. Prices have advanced 19 percent this year as unrest spread from Tunisia to Egypt, Libya, Yemen, Bahrain and Syria. Libya has been effectively split in two since the early stages of the two-month conflict that has disrupted the country’s oil exports. Brent crude oil for June settlement traded at $123.51 a barrel, up 6 cents, on the London-based ICE Futures Europe exchange. The contract rose $1.45, or 1.2 percent, to end the session at $123.45 on April 15. |
Sources: Bloomberg, Reuters, www.inquirer.net, www.philstar.com, www.bworldonline.com, www.cnnmoney.com
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