THE VOICE OF BUSINESS IN NORTHERN MINDANAO

Monday, June 13, 2011

Scheduled NGCP Power Interruption on Thursday, June 16, 2011

CAGAYAN ELECTRIC POWER & LIGHT CO., INC.

Important Notice to CEPALCO Customers

Subject: Scheduled NGCP Power Interruption on Thursday, June 16, 2011

The Cagayan Electric Power & Light Co., Inc. (CEPALCO) would like to inform all customers that the National Grid Corporation of the Phils. (NGCP) has advised CEPALCO that power supply will be interrupted on JUNE 16, 2011 as shown below:


Reasons:

NGCP TO CONDUCT ANNUAL PREVENTIVE MAINTENANCE OF THEIR 75MVA POWER TRANSFORMER AND ITS ASSOCIATED HIGH VOLTAGE EQUIPMENT AT LUGAIT SUBSTATION. TO REDUCE THE IMPACT OF THE SCHEDULED INTERRUPTION, CEPALCO WILL SHIFT THE SUPPLY OF CARMEN SUBSTATION FROM LUGAIT TO NATUMULAN AND OPERATE MINERGY TO SUPPORT THE GRID.

Date:

Thursday, June 16, 2011

Interruption Time:

One (1) hour maximum beginning at 8:00 AM; and

One (1) hour maximum beginning at 5:00 PM;

Affected Areas:

CARMEN FEEDER #1 (13.8-KV):

1. Greater portion of Carmen proper along Lirio St. from Trinity Tree St. towards Oak St., Max Suniel St., Vamenta Blvd. upto corner Jasmin St. including Waterlily St. and Carmen Market area.

2. Along Mabolo St. from Lirio St. towards corner Rosal St. including portion of Marigold St. from Mabolo St..

3. Portion of Carmen: vicinities along Vamenta Blvd. from Fernandez St. towards greater part of Ilaya including: portions of Ipil St. and Mahogany St. from Fernandez St.; Madonna & Child Hospital; and; SeriƱa St. from COA towards Gumamela Ext.St., Guani Coliseum (former O.Roa’s) and Maharlika Police Station.

4. All of Macanhan, Carmen towards all of Lower Balulang.

CARMEN FEEDER #2 (13.8-KV):

1. Portion of Carmen along Yacal St. towards Lirio St., Vamenta Blvd., Waling-waling St. upto GSIS area including Ferrabrel St., Mango St. and portion of Rosal St. and Marigold St..

2. All of Kauswagan proper, Bonbon and Bayabas.

3. Isla de Oro.

4. Along Montalban St. from near Tiano Bros. St. towards Burgos St., del Pilar St. and Magsaysay St. including portions of Macahambus St. and Abellanosa St. from Burgos St..

5. Portions of A.Luna St. from corner Corrales Ave.; towards vicinities along A.Velez St. up to corner Mabini St. including portion of: Makahambus St. from A.Velez St. and Tiano Bros. St. from Macahambus St.


Power will however be restored immediately without further notice

when maintenance works of NGCP 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.

Morning Brief: 13 June 2011

Analysts expect another rate hike this Thursday

A THIRD consecutive policy rate hike could be delivered this Thursday by the Bangko Sentral ng Pilipinas (BSP), analysts said, as inflation will likely keep rising despite a lower-than-expected result for May.

Monetary authorities yesterday said all options remained on the table as consumer price increases was still the primary concern.

Eight out of 12 analysts polled by BusinessWorld said they expected another 25 basis point (bps) adjustment to be announced by the central bank, which on Friday said it would be revising inflation forecasts for this year and the next.

May inflation of 4.5% was at the lower end of the BSP’s outlook for the month, surprising analysts who had expected a result of just over 5%. With the economy expanding by only 4.9% in the first quarter, many observers said monetary authorities could hold off from another rate hike.

Still, with inflation up from the revised 4.3% for April and hitting its fastest pace in a year, analysts said a "preemptive move" by the central bank this Thursday should be anticipated.

"We expect BSP to hike by another 25 bps in June then pause in Q3 (third quarter). While May CPI (consumer price index) came in lower than market expectation, inflation remains on the uptrend," Standard Chartered economist Vincent Tien You Tsui said in an e-mail.

Inflation, he said, will likely peak in July.

ING Bank economist Jose Mario I. Cuyegkeng concurred, saying in a telephone interview: "Our base case as of the moment is still another 25 bps [this Thursday] ... expectations are still that inflation will breach 5% in the coming months. This is a preemptive stance."

Rizal Commercial Banking Corp. Senior Vice-President and Treasurer Marcelo E. Ayes said volatile commodity prices, a stuttering US recovery and Japan’s push to get back on its feet following -- which would increase demand for oil -- could push inflation even higher.

Barclays Capital economist Prakriti Sofat, on the other hand, said in a separate e-mail: "May inflation surprised on the downside... our base case is that Bangko Sentral ng Pilipinas will keep rates unchanged at 4.5% in June so as to gauge the impact of its previous tightening on inflation expectations against a backdrop of increased global growth uncertainties."

University of the Philippines economist Benjamin E. Diokno said monetary authorities should wait for the second quarter economic growth data before deciding if further tightening was needed.

"Given the relatively lower than expected [May] inflation combined with lower GDP (gross domestic product) growth in the first quarter, I say the BSP should pause in its rate adjustment," the former Budget secretary said.

Central bank Governor Amando M. Tetangco, Jr., speaking at the sidelines of a MalacaƱang reception yesterday, reiterated that a rate hike remained an option.

"The economy is still growing at a respectable rate, what we need to make sure of is that inflation remains within the target range of the BSP...," Mr. Tetangco said.

Finance Secretary Cesar V. Purisima, a member of the central bank’s policymaking Monetary Board, said: "All the tools will be considered... including increasing interest rates, including reserve requirements."

"I think the strategy is to make sure we’re always ahead of the curve in dealing with inflation... I’m sure there will be a lively discussion and we’ll do what is necessary," Mr. Purisima added.

Mr. Tetangco said the Monetary Board could also review reserve requirements and macroprudential regulations, with any decision to be "based on [our] assessment of [the] inflation outlook and changes in inflation expectation as well as the amount of liquidity in the system."

The BSP has said inflation could top 5% in the second and third quarters but remain within its 3-5% target for this year.

Policy rate hikes announced in March and May -- which raised the central bank’s overnight borrowing and lending rates to 4.5% and 6.5%, respectively -- were needed as the inflation target was at risk, officials have said. -- Antonio Siegfrid O. Alegado and Johanna Paola D. Poblete



Stocks: Losing streak meets economic reports

NEW YORK (CNNMoney) -- Wall Street faces a data-heavy schedule this week that is expected to bring more volatility to a market full of investors weary from six consecutive weeks of losses.

The government will release its closely watched May retail sales report on Tuesday and consumer inflation data on Wednesday. That's only two of the dozen or so reports investors will have to work through.

Portfolio managers said this week's data are going to be especially important, particularly since the past several weeks of reports have shown signs the U.S. economic recovery is in jeopardy.

"The [economic] drivers that pushed this market higher have faded," said Dean Barber, president of the Barber Financial Group.

This week's inflation numbers will be closely watched, as oil remains subbornly near $100 a barrel and other commodities such as copper and corn trade at record or near-record highs.

"If we get from the data this week paints a picture of high inflation, low economic growth, that's going to be pretty nasty for stocks," said Christopher Murphy, managing director at Cantor Fitzgerald.


The disappointing economic reports are key to stocks' retreat since early May. The Dow and S&P fell for a sixth-consecutive week last week and the Nasdaq is now negative for 2011.

"People are definitely afraid," Murphy said. "We have been told told to buy the dips for the past nine months, but that is no longer working."

Along with the economic reports comequarterly corporate results from Other items Best Buy (BBY, Fortune 500), Research in Motion (RIMM) and supermarket chain Kroger (KR, Fortune 500).

On the Docket

Tuesday: Investors will get the Commerce Department's retail sales report and the Labor Department's producer price index, also known as manufacturer inflation.

Economists forecast retail sales fell by 0.7% in May compared with a 0.5% rise reported in April, according to Briefing.com. The May producer price index is expected to have climbed 0.1% versus a 0.8% rise in April.

Consumer electronic retailer Best Buy is slated to report its fiscal first-quarter results before the market open. Analysts surveyed by Thomson Reuters expect Best Buy to have earned 33 cents a share.

Cantor Fitzgerald's Murphy said with the sluggish economic data and low consumer spending numbers, expectations are low for the electronics retailer. Best Buy shares are down 17% this year.

Wednesday: The Labor Department will release its consumer price index for May at 8:30 a.m. ET. Economists expect consumer inflation ticked up by 0.1% in May, down from the 0.4% rise reported the month prior.

Also out Wednesday are the Empire State manufacturing index, and the Federal Reserve's industrial production and capacity utilization reports.


Thursday: Investors will get initial unemployment claims at 8:30 a.m. ET from the Labor Department, along with May housing starts and building permits data from the Commerce Department. Economists expect weekly claims will fall to 421,000 from last week's reading of 427,000 claims.

The Federal Reserve Bank of Philadelphia will release its June manufacturing survey at 10 a.m. ET.

Supermarket chain owner Kroger will report results before the opening bell, with analysts expecting earnings of 64 cents per share.

Reporting results after the close will be BlackBerry maker Research in Motion, which is expected to have earned $1.32 a share.

Friday: The University of Michigan will release its initial June consumer sentiment index at 9:55 a.m. ET. Economists are looking for the index to fall to a reading of 73.5 from May's reading of 74.3.


Crude Oil Declines for a Second Day on U.S., China Economic Growth Concern

Oil dropped for a second day in New York ahead of reports that may show slowing economic growth in the U.S. and China, curbing fuel demand in the world’s two largest crude consumers.

Future slumped as much as 0.6 percent, extending declines after the biggest single-session drop in four weeks on June 10. Sales at U.S. retailers probably fell in May for the first time in 11 months as car buying eased and elevated gasoline costs restrained consumers. A report tomorrow may show China’s industrial production slowed.

“Financial starts and stalls have made some pessimistic about the future health of the major developed economies in the near term,” energy and tanker consultant Poten & Partners Inc. said in a June 10 research note.

Crude for July delivery fell as much as 59 cents to $98.70 a barrel in electronic trading on the New York Mercantile Exchange and was at $98.83 at 7:07 a.m. Singapore time. The contract on June 10 slid 2.6 percent to $99.29 a barrel, the biggest drop since May 11. Oil is up 31 percent the past year.



Sources: Bloomberg, Reuters, www.inquirer.net, www.philstar.com, www.bworldonline.com, www.cnnmoney.com

BDO UNIBANK INC.

Jonathan Ravelas
Chief Market Strategist
(632) 858-3145

Rhys Cruz
Junior Researcher

(632) 858-3001
Share |


Oro Chamber on Facebook