BUSINESS

NEWSPAPER
OF 2014
AND 2015

P25

IN METRO
MANILA,
PHILIPPINES

Awarded by

ROTARY
CLUB OF
MANILA

AS I A N M A R K E TS
JANUARY 12, 2016

INDEX

42.29 PTS.
0.67%
COMPOSITE
30 DAYS TO JANUARY 12, 2016

OPEN:
HIGH:
LOW:
CLOSE:
VOL.:
VAL(P):

JAPAN (NIKKEI 225)

HONG KONG (HANG SENG)
TAIWAN (WEIGHTED)
THAILAND (SET INDEX)
S.KOREA (KSE COMPOSITE)
SINGAPORE (STRAITS TIMES)
SYDNEY (ALL ORDINARIES)
MALAYSIA (KLSE COMPOSITE)

6,322.87
6,433.75
6,322.87
6,330.55
1.199 B
4.699 B

CLOSE
17,218.96
19,711.76
7,768.45
1,253.47
1,890.86
2691.78
4,925.13
1,641.37

WO R L D M A R K E TS
JANUARY 11, 2016

NET
%
-479.00 -2.71
-176.74 -0.89
-19.97 -0.26
18.97 1.54
-3.98 -0.21
-17.07 -0.63

-7.11 -0.14
3.78 0.23

DOW JONES
NASDAQ
S&P 500
FTSE 100
EURO STOXX50

CLOSE

16,398.57
4,637.989
1,923.67
5,871.830
2,876.590

NET
52.12

-5.642
1.64

-40.610
-11.250

WORLD CURRENCIES

ASIAN CURRENCIES

P E SO - D O L LA R R AT E S

JANUARY 12, 2016

LATEST BID (0900GMT)

FX
OPEN
P47.240
HIGH
P47.195
LOW
P47.450
P47.440
5.4 CTVS. CLOSE
WEIGHTED AVE. W. AVE. P47.325
30 DAYS TO JANUARY 12, 2016 VOL. $988.00 M

STOCK MARKET

JAPAN (YEN)
117.720
HONG KONG (HK DOLLAR)
7.758
TAIWAN (NT DOLLAR)
33.452
THAILAND (BAHT)
36.310
S. KOREA (WON)
1,209.740
SINGAPORE (DOLLAR)
1.438
INDONESIA (RUPIAH)
13,905
MALAYSIA (RINGGIT)
4.409

PREVIOUS
117.730

7.758

33.288

36.260

1,203.880
1.434

13,870

4.380

JANUARY 12, 2016

$/UK POUND
$/EURO
$/AUST DOLLAR
CANADA DOLLAR/US$
SWISS FRANC/US$

CLOSE

PREVIOUS

1.4492
1.0858
0.6985
1.4227
0.9997

1.4570
1.0884
0.7006
1.4118
0.9984

WE DNE S DAY JANUARY 13, 2 01 6 www.bwo r ld o n lin e.co m

VOL. XXIX ISSUE 118

OIL
JANUARY 11, 2016
CLOSE PREVIOUS
DUBAI 28.10 29.20
WTI
31.41 33.16
BRENT 31.55 33.55

S1/1-12 3 SECTIONS, 24 PAGES

Up to P3.5-trillion budget eyed for 2017

By Melissa Luz T. Lopez

PHILIPPINE MERCHANDISE
EXPORT PERFORMANCE

Reporter

THE GOVERNMENT is looking

to propose a national budget of
up to P3.5 trillion for 2017, with
a particular focus on climate
change mitigation alongside increased spending on infrastructure and agriculture, the countrys Budget chief said.
In a recent interview, Budget
Secretary Florencio B. Abad said
his department will be drafting a P3.4-3.5 trillion spending
program for next year, which is
13-17% more than the current
P3.002-trillion budget.
I dont know what the revenue (collection targets) are, but
even if we borrow were growing [the budget] at 15.3%, so that
should be about another P400
billion. So thats P3.5 trillion or
P3.4 trillion, Mr. Abad said when
asked about the budget amount to
be proposed next year.
The 2016 budget is similarly
15.2% more than the P2.606 trillion budget for last year.

Total exports, November

(FOB value in $ million)

20

1,000

2,000

Other
manufactures
Ignition wiring
set and other
wiring sets used
in vehicles,
aircrafts
and ships

5,117.35
3,000

4,000

5,000

2.06

-0.02

-1.82

-2.96

-3.18

-20

Nov. 2014

Dec.

Jan. 2015

Feb.

March

144,460

10

By Kia B. Obang
Senior Researcher

THE DECREASE in sales of the

countrys goods to foreign markets persisted in November last
year in the face of a continued
slump in global demand, even
though that drop was the smallest
in eight months.
Preliminary data the Philippine Statistics Authority (PSA)

released yesterday show merchandise exports receipts slipped

1.1% year on year to $5.1 billion
in November, a reversal of the
19.7% increase logged in 2014s
comparable month. Novembers
drop was the smallest since April.
Meeting our export targets
has been very challenging as the
global economy remains weak,
which translates into weak demand for the countrys export
products, Economic Planning
Secretary Arsenio M. Balisacan

surpassed our annual target of

272,000 units for CAMPI, CAMPI President Rommel R. Gutierrez said in the statement.
In December alone, passenger car sales rose 10,461 units or
33.3% from 7,850 units in 2014s
comparable month. For the year,
the category hit sales of 116,381
units, up 28.9% from 90,287 units
a year earlier. Sales grew in this
segment as new car models were
introduced and financing strategies were intensified throughout
the year, the car groups said.

The same month saw commercial vehicle sales growing 20.4%

to 16,218 units from 13,470 a year
earlier, bringing the year-to-date
total to 172,228 units, up 19.2%.
Among car companies, Toyota
Motor Philippines Corp. led with
a market share of 43.32%. Mitsubishi Motors Philippines Corp.
was second with 18.74%. Ford
Motor Co. came out third with
8.79%. Isuzu Philippines Corp.
and Honda Cars Philippines, Inc.
round out the top five with a share
of 7.82% and 6.69%, respectively.

E
ON TEHB
W

2015

June

said in a statement issued by the

National Economic and Development Authority (NEDA).
Given the performance of
the export sector in the first 11
months of 2015, the full-year
target is unlikely to have been
met, said Mr. Balisacan, NEDAs
director-general, in reference to
a $65-billion goal that reflected
a projected 4.7% increase from
2014s actual $62.102 billion.
He said exports would have to
log a total of $11 billion, equiva-

DETROIT

Hyundai aims to set

benchmark for luxury
with Genesis brand

Hyundai is reaching for the top

in launching a new
luxury brand,
AROUN
Genesis, which
THE D
aims to repliW
O
RLD
cate the success
of Japanese rivals while redefining the customer experience. The
Korean automaker unveiled its
flagship sedan, the G90, at the
Detroit auto show on Monday
that was designed to compete
with the top offerings of storied
brands like Mercedes and BMW
by offering best-in-class performance and features. S3/3

Dow, S&P 500 finish

up in late rebound
26,679

26,979

28,667

27,069

23,181

24,569

24,185

23,139

21,259

5
0

2014

May

July

Aug.

Sept.

Oct.

Nov.

BUSINESSWORLD GRAPHICS: BONG R. FORTIN

Export drop persists in November, though smallest in eight months

23,557

15

172,228

April

-15.51

SOURCE: PHILIPPINE STATISTICS AUTHORITY

20,663

90,287

-1.11

-6.27

-17.40

25
20

2,500

-10.84

(in units)

18,662

22.9%

2,000

-10

NEW YORK
30

1,500

-1.79

-4.10

PASSENGER CARS
COMMERCIAL VEHICLES

234,747 288,609
116,381

1,000

10

2015 VEHICLE SALES

TOTAL

500

November 2014
November 2015

(in %)

Automobile sales top 2015 goal

VEHICLE SALES increased
25.1% in December last year to
26,679 units, bringing the fullyear 2015 total to 288,609 units or
higher by nearly 23% compared
with the figure a year earlier.
In a statement, the Chamber of
Automotive Manufacturers of the
Philippines, Inc. (CAMPI) and
the Truck Manufacturers Association said that most vehicle categories performed well in 2015.
The industry was able to
maintain the growth momentum of previous years. We again

TOP 5 EXPORTS
By commodity group

Annual growth rate

19.65

AQUINOS LAST PROPOSAL

The 2017 program will be the last

spending plan to be prepared by
the current administration, as
Pres. Benigno S. C. Aquino III
ends his six-year term on June 30.
The Aquino administration
has approved spending plans for
2011 to 2016 on time, ending the
trend of a reenacted budget seen
during the term of former president now Pampanga Rep. Gloria Macapagal-Arroyo (second
district) that left new programs
unfunded.
Under the budget cycle, the
Department of Budget and Management (DBM) will issue a budget call usually within the first
quarter of the prior year for
line departments, agencies, offices and other units to submit
their funding estimates, which
Budget, S1/3

326.15
360.31
320.23
207.75
318.02
338.33
222.21
196.11

Machinery
and transport
equipment

5,174.90

-1.1

2015

2,773.50
2,538.67

Woodcrafts
and furniture

(Year-on-year growth, in %)

19.7

2014

(FOB value in $ million)

Electronic
products

Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec.
2015
SOURCE: CAMPI
BUSINESSWORLD GRAPHICS: BONG R. FORTIN

BEYOND

Five years after Arab Spring,

hopes dashed for change
http://goo.gl/uJv1Q8

DISCLOSURES

Alterra Capital Partners,

A. Soriano Corporation
http://goo.gl/k1tIuB

The Dow and S&P 500 ended

a volatile session up slightly on
Monday in a late turnaround, but
a drop in biotechs and energy
shares kept a lid on the market.
The start of earnings season
added to investor nervousness.
The Nasdaq ended lower, led by
a drop in biotech company Celgene, which fell 5.5% to $103.03
following a disappointing profit
forecast. S3/4

EVENTS CALENDAR

lent to a growth of 129%, in December to hit the full-year target.

The government has two projections for merchandise exports:
the Development Budget Coordination Committees downwardrevised 4% assumption and the
Export Development Councils
8-10% goal.
Merchandise exports which
have historically accounted for up
to 40% of gross domestic product
(GDP) contracted 5.8% annually year-to-date.

Tax bureau sets targets

to exceed P2 trillion in
total collections this year
By Keith Richard D. Mariano
THE BUREAU of Internal Revenue (BIR) targets to further increase its collections to breach
the P2-trillion mark this year,
relying largely on income and
value-added taxes (VAT).
The Department of Finance
has set the bureaus collection
target at P2.025 trillion or 21%
above the P1.674-trillion goal
for 2015, according to Revenue Memorandum Order No.
2-2016 that was issued on Jan.
6 and distributed to reporters
yesterday.
The target is the highest target
for the BIR under the six-year
watch of President Benigno S.C.
Aquino III, who steps down on
June 30, Treasury data show.
The government expects the
bureau to deliver the record collection to cover 67% of the P3.002
trillion expenditure programmed
for the year.
The BIR aims to collect P1.230
trillion or 61% from large taxpay-

Energy Policy and Devt Program

Conference, Manulife media briefing
http://goo.gl/9qRlCS

Despite shrinking for most of

last year, exports could count on
electronics to provide a lift going forward, Mr. Balisacan said,
citing the 20-month high in Japans manufacturing purchasing
output growth that signals solid
growth in the Philippines top export market.
Japan was the Philippines top
export market in November with
a 21.3% share of the total, followed by the United States (14%),
Export, S1/3

ers, a category that covers those

with total annual gross sales or
receipts of at least P1 billion and
net worth of at least P300 million
at the close of each fiscal year.
Large taxpayers also consist of
those paying at least P100,000
in VAT per quarter, P1 million
in annual excise tax, P1 million
in annual income tax, P1 million
in withholding tax, P100,000 in
percentage taxes per quarter, or
P1 million in annual documentary
stamp taxes.

ELECTION BOOST

Higher growth in 2016 will result

in higher corporate profits, Finance Undersecretary and Chief
Economist Gil S. Beltran said in
a text message when sought for
comment.
Elections will boost growth
by at least a percentage point.
From its operations, the BIR
aims to collect P1.97 trillion,
consisting of P1.192 trillion in
taxes on net income and profits,
P405.11 billion in VAT, P170.72
billion in excise tax, P82.9 bilTax, S1/3

A NEWSPAPER IS A PUBLIC TRUST

FOLLOW US ON:

facebook.com/BusinessWorldOnline
twitter.com/bworldph

2/S1

Corporate News

Globe seeks Open Access law for telco industry

expedite the issuance of all the
relevant permits for all telecommunications facilities at the local government level, he added,
although Globe noted there is
currently no such proposal filed
in Congress.
Telecommunication companies are required to secure several permits before securing
approval to build cell sites, said
Mr. Cu.
This leads to delays that usually take between six months and
one year, Globe senior vice-president for corporate communications Ma. Yolanda C. Crisanto said
in a mobile phone reply.
Mr. Cu said Globe has around
500 cell sites waiting to be built at
any given time.Ms. Crisanto said
the company is planning to put up

By Daphne J. Magturo Reporter

GLOBE TELECOM, Inc. on Tuesday said it wants to build 500 cell
sites to boost Internet speed in
the country but is held back by
red tape at the local government units, and called for the creation of an Open Access Law.
[T]he government can expedite
legislation to mitigate bureaucratic
red tape and other political hurdles
that stand in the way in the deployment of telecommunication and
broadband infrastructure, such
as cell sites, Globe President and
Chief Executive Officer Ernest L.
Cu said in a statement.
Specifically, an Open Access
Law for the telco industry would

cell sites in National Capital Region, and North and South Luzon.
Philippine Long Distance Telephone Co. (PLDT) agreed with
Globe on the issue, saying this is
indeed an industry concern.
[T]o install a single cell site,
you have to get something like
30 permits, from different agencies, both local and national. So
if we could simplify that process,
then operators can deploy their
network infrastructure faster,
PLDT Spokesperson and Head of
Public Affairs Ramon R. Isberto
said in an e-mail interview.
Sought for comment, Senator
Ralph G. Recto, chair of the Committee on Science and Technology, agreed there is a need for the
proposal.We must work with investors to promote greater Internet

access, improve speed and reduce

cost to increase our productivity
and create jobs in the 21st century,
he said in a mobile phone reply
when sought for comment.
The Ayala-led telco said if the
government prioritizes Internet
infrastructure, businesses can
build on their capabilities and
support the economys growth.
Prioritizing the Open Access
law for the telco industry would
help fast track fiber builds that
will increase [I]nternet access
and speeds in the country, he
said. The government can help
by providing the right regulatory
environment for an Internet infrastructure that would develop
local industries information and
communications technology capabilities, he added.

Correspondent

DAVAO CITY Entrepreneur

Macmac Lejano, who operates a
micro retail shop known as a
sari-sari store is not threatened
by the sudden mushrooming
of 7-Eleven convenience stores
around the city.
His six-year old shop, located
along Ilustre Street, is adjacent
to one of the newest 7-Eleven outlets along San Pedro Street in the
citys central area.
Despite competition from the
global brand, Mr. Lejano said the
store, which sells candy per piece
and basic kitchen necessities in
volumes as small as two spoonfuls, continues to generate a daily
income of about P600.
I still get almost the same earnings every day since I have different
customers than those going to the
convenience stores, he said.
Letty Madrasto, who owns
a sari-sari store located near a
7-Eleven branch in Ulas an area
in the southern side of the city,
admitted her earnings have gone
down on some days, but quickly
added that there have also been
days when sales were brisk.
Ms. Madrasto said she is confident that customers will continue

CARMENCITA A. CARILLO

Davao sari-sari stores unfazed

by upscale 7-Elevens entry
By Carmencita A. Carillo

A 7-ELEVEN store in
Davao City, where
Philippine Seven Corp.
is aiming to open a
network of 70 stores
by June this year.

to buy from her store because

she handles every transaction
promptly, and people never have
to line up to make a purchase as
they sometimes have to in convenience stores.
Davao City Investment and
Promotion Center Chief Ivan
Chin Cortez said the local government expects these neighborhood shops to remain a strong
sector under the micro, small
and medium enterprises because
7-Eleven is still largely seen by
the local market as a rather upscale shop.
Nonetheless, Mr. Cortez said
7-Eleven operator Philippine Seven Corp. (PSC) has discovered a
growing demand among the citys
consumers They are continuously expanding and will reach 70
stores by June this year, based on
its submitted business plan.

EDITOR CATHY ROSE A. GARCIA

WEDNESDAY, JANUARY 13, 2016

Listed firm PSC launched its

foray into Mindanao last year
with the opening of its first store
in Davao City in May.
Department of Trade and
Industry-Davao City Director Edwin O. Banquerigo said 7-Elevens
aggressive roll-out of branches
is a rational business strategy in
terms of cost-effective operations.
We can attribute the growth
of the 7-Eleven stores in the
city to economies of scale, Mr.
Banquerigo said, noting the cost
of operating and maintaining a
central warehouse for the goods
that are distributed to the convenience shops.
Prior to the entry of 7-Eleven
stores here, Davao Citys convenience store sector was dominated by homegrown chains, the
Davao Central Convenience Store

operated by the Felcris group and

Choice Mart and HB1 owned by
LTS Pinnacle Holdings, Inc.
Both Felcris and LTS Pinnacle
also have a chain of supermarkets
to complement their convenience
stores.
Jojo N. Canda, LTS Pinnacle
vice-president for supermarkets,
in an earlier interview said they
are planning to open at least five
convenience stores per year given
the changing lifestyle of the citys
residents.
If we look at the picture of the
retail landscape, it is changing
Consumers nowadays are getting
busier like the working moms,
they do not want to go to the farther and bigger [shopping] malls
but instead go to small and nearby
stores, Mr. Canda said.
LTS Pinnacle has seven Choice
Mart grocery stores and 51 of the
smaller shops with a pharmacy
branded as HB1.
On the other hand, Davao
Central Convenience Store, the
pioneer 24/7 retailer in Davao
City, has a network of 82 shops,
including those in other parts of
the Davao Region.
Mr. Cortez said similar to the
comparison with sari-sari stores,
7-Eleven shops are seen as catering to the high-end market while
the local convenience stores are
for everyone.

PLDT inks deal

with HK telco
PHILIPPINE Long Distance Telephone Co. (PLDT) has
inked an Internet Protocol Exchange (IPX) agreement
with a unit of Hong Kongs telco provider HKT, saying
this will make phone calls and Internet access faster for
both of their subscribers.
The IPX multi-service interconnection agreement is
expected to benefit their fixed, mobile, and international customers.
The deal will also allow PLDT and HKTs international operating division PCCW Global to expand
their relationship in new market segments.
Mobile operators connected to PCCW Global IPX
can enjoy access to its MobileXchange service suite
and cloud-based applications OTT (over-the-top) solutions and more, PLDT said in a statement yesterday.
This will give mobile operators the ability to differentiate themselves in roaming and in domestic
services, according to the local telco giant.
With PCCW Globals proven expertise in delivering
advanced and quality services, we believe that this
agreement will enable us to deliver a broader range
of digital services to our customers, especially to our
overseas Filipinos in Hong Kong and their families
back home, PLDT Chairman Manuel V. Pangilinan was
quoted in the statement as saying.
For PCCW Global Chief Executive Officer Marc
Halbfinger, the IPX interconnection was a natural
step, considering that PLDT has been its major partner
in several projects.
We are looking forward to bringing innovative
solutions to international services which could directly
benefit the Philippine market, Mr. Halbfinger said in
the statement.
The PCCW Global network, which covers over five
continents, has customers in more than 3,000 cities
and around 140 countries.
[It] is one of the largest in the world supporting GSMA
(Groupe Speciale Mobile Association) standardized services
and Cloud-based applications, enabling new revenue
streams for connected operators, PLDT said.
Hastings Holdings, Inc., a unit of PLDT Beneficial
Trust Fund subsidiary MediaQuest Holdings, Inc., has
a stake in BusinessWorld through the Philippine Star
Group, which it controls. Daphne J. Magturo

PHILIPPINES TOP 10 SEMICONDUCTOR EXPORTERS

(in million pesos, 2014)

Electronics remain the Philippines core export. According to the latest Philippine Statistics
Authority data, electronics comprised 54.2% of exports in November last year, of which
semiconductors made up the biggest at 38.3% of the total. Thirty-five semiconductor
makers made it to the Top 1000 Corporations in the Philippines. All told, electronics
exporters contributed 4.4% of the gross revenue generated by the countrys top 1,000
corporations. Ranier Olson R. Reusora
GROSS REVENUE

NET INCOME

135,923

TI (Philippines), Inc.

Rohm Electronics
Philippines, Inc.

Samsung ElectroMechanics Philippines Corp.

Amkor Technology
Philippines, Inc.

13,551

462

26,113

24,596

-316

-857

22,299

590

19,440

STMicroelectronics, Inc.

NXP Semiconductors
Cabuyao, Inc.

15,950

83

Phoenix Semiconductor
Philippines Corp.

10,451

775

Ibiden Philippines, Inc.

10,049

157

Integrated MicroElectronics, Inc.

San Technology, Inc.

-585

9,844

-89

8,898

Source: BusinessWorld Top 1000 Corporations in the Philippines

BusinessWorld Graphics: Samantha Gonzales

Sia-led Hotel of Asia brings

Chinese brand to Manila
CHINESE HOTEL brand Jinjiang Inn is hoping to take advantage of the growing Philippine
tourism market, with the opening
of two hotels in Metro Manila.
In a statement, Hotel of Asia,
Inc. (HOA), the hospitality firm led
by Mang Inasal founder Edgar J. Sia
II, said two Jinjiang Inn hotels in
Ortigas and Makati both had their
soft opening on Sept. 22, 2015.
The Ortigas hotel, which has
95 rooms, is located at San Miguel
Ave. corner Lourdes Drive in
Ortigas Center, Pasig City. The
59-room Makati hotel is along A.
Arnaiz Avenue, Makati City.
Through its subsidiary CSI
Hotels, Inc., HOA became the
Philippine master franchise
holder for Jinjiang Inn in 2011,
after signing the deal with Chinas
largest hospitality conglomerate
Jin Jiang Hotels.
HOA is a company owned
by Mr. Sias Injap Investments,
Inc., tycoon Carlos Chans Oishi
Liwayway Marketing Corp. and
Steineil Development Corp. Mr.

Sia is the chairman and chief executive officer of the company.

With 1,566 hotels worldwide,
Jin Jiang Hotels is said to be
the 9th largest hotel chain in the
world.
While Jinjiang Inn is considered a budget hotel chain in
China, HOA said the hotels in the
Philippines offers business boutique accommodations.
Jinjiang Inn in the Philippines will be a notch higher than
its counterpart in China, as it provides guests with 3-star business
boutique accommodations with
comfort and convenience in mind
in its full-serviced hotels in key
cities in the Philippines, HOA
said in a statement.
In the Philippines, Jinjiang
Inn is managed by HOAs hotel
management company, Hotel 101.
Aside from Jinjiang Inn, HOA
also manages and operates the
Injap Tower Hotel in Iloilo City,
and the upcoming Hotel 101 Manila in the Mall of Asia Complex.
CRAG

A VIEW of the Jinjiang Inn Makati, located along A. Arnaiz Avenue.

Japan carrier ANA to buy

8.8% of Vietnam Airlines
HANOI Japans ANA Holdings said it plans to buy 8.8%
of Vietnam Airlines for about
$108 million, as both carriers
seek to take advantage of growing travel demand in Southeast
Asia.
The deal is likely to be the
first stake sale by a major Vietnamese firm this year, giving a
much needed boost to the governments privatization drive
which has been criticized for
being sluggish and lacking appeal.
Vietnam Airlines, which raised
$51.2 million by selling 3.47% of
the company at its 2014 initial
public offering, has been seeking

to sell a 20% holding to strategic

partners.
As part of the deal, ANA will
dispatch an executive to the
board of Vietnam Airlines and
provide it with operational and
management know-how to help
support service quality, the companies said in a statement.
The stake sale could come as
soon as the middle of this year,
Vietnam Airlines Chief Executive Officer Pham Ngoc Minh told
Reuters in a text message.
Vietnam Airlines is targeting a
pre-tax profit of 2.3 trillion dong
($103 million) this year, up 64%
from 2015, the company has said.
Reuters

S1/3

WEDNESDAY, JANUARY 13, 2016

Budget,

Tax,

from S1/ 1
will then be subject to deliberations within the Executive.
Once finalized, the program
will be submitted by the President to Congress for discussion,
adjustment and approval before
it goes back to Malacaang for
signing into law.
However, the proposed 2017
spending plan will be taken up
by a new president who will take
office at noontime of June 30 and
by a new set of legislators who will
win the May 9 national elections.

PRIORITIES

Currently, the governments inter-agency Development Budget

Coordination Committee composed of economic managers who
set macroeconomic assumptions
for budgeting purposes still
expects the Philippine economy
to grow between 7-8% until 2018,
though the target is seen good as
missed for 2015 due to slowerthan-expected public spending
and a contraction in export of
goods.
Growth averaged 5.6% for the
first nine months of 2015 as the
economy grew 5% in the first
quarter, 5.8% in the second quarter and 6% in the third quarter.
The government had set a
7-8% growth goal for 2015, but
to hit even a 6% average for that
year, the economy must have expanded by 6.9% in the last three
months a pace deemed not
difficult by Mr. Abad given faster
government spending seen in the
second half of 2015.
Asked what sectors could be
the focus of spending in 2017, Mr.

from S1/ 1
Abad replied: Significant investments would be climate change,
and then of course continuing
infrastructure and then agriculture.
We will push infrastructure
even further to 6% (of gross domestic product, or GDP).
The budget had identified as
this years priorities: pursuit
of good governance and anticorruption measures; making
growth inclusive; creating more
and better jobs by sustaining the
growth momentum; managing
disaster risks; as well as establishing an enabling environment of
just and lasting peace and the rule
of law.
The 2016 budget allots roughly
P766.5 billion equivalent to
5% of GDP for infrastructure
spending, taking off from 2015s
P431.57 billion.
The Budget chief earlier said
that the current spending program focuses on the building and
rehabilitation of national roads
and bridges, while next years
budget will allot bulk of infrastructure funds for construction
and repair of provincial thoroughfares.
But analysts of Natixis Asia
Research, a unit of the Parisbased investment bank, said
that while the government
has gradually increased disbursements for infrastructure,
the persistence of absorption
constraints reflected by historically smaller-than-programmed
spending will likely mean allocations for this year will suffer a
similar fate.

The 2017 budget will set investments for climate change

mitigation and adaptation, Mr.
Abad said, following the landmark agreement among countries
forged in Paris last month.
With submission of the proposed 2017 budget to Congress
still months away, the government has enough time to identify
investments needed to fulfill the
Philippines commitment under
the 21 st Conference of Parties
(COP21) agreement that was
signed in France, the Budget chief
added.
Countries made individual
commitments at the Paris summit in a collective bid to cap the
increase in global temperature
at below 2 degrees Centigrade,
to strive for a 1.5C cap and to
update national targets every five
years. In Paris, the Philippines
led the so-called Vulnerable 20
emerging economies deemed
most exposed to the risks of extreme weather conditions. The
pact is subject to ratification by
each country.
Prior to the COP21 pact, the
2016 budget already earmarks
some P132 billion for climate
change-related spending the
highest so far for such purpose,
Mr. Abad said.
DBM data showed that bulk
of the funds some P59.8 billion
will be used for flood control
projects under the Department
of Public Works and Highways,
P10.2 billion for reforestation,
and P12.9 billion to build farmto-market roads under the Agriculture department.

lion in percentage taxes and

P118.86 billion worth of other
taxes.
Collections from non-BIR operations or those from government agencies and corporations
are expected to reach P55.67

billion. The amount consists of

P50.99 billion worth of taxes on
net income and profits and P4.68billion other taxes.
Under the Aquino administration, the BIR has consistently
missed its full-year targets, al-

though actual revenues have

grown steadily year-on-year. The
bureau had collected P1.945 trillion as of end-November 2015.
Taxmen will try their best to
hit the 2016 target, Mr. Beltran
said.

was driven mainly by electronics

shipments, as expansion in this
sector reflects possible modest
but steady demand for semi-finished electronics products.
[B]ut despite the near-double
digit growth of more than half of
the export basket, the total print
was still below water, he said in
an e-mail.
So are exports really recovering? Probably not our other
sectors, which had driven the
unusual strong performance in
2014.
PSA data showed sales of
garments plunged by 42.7% in
November, followed by chemicals which dropped by 39.4%.
Exports of furniture and fixtures
also suffered 34.9% drop that
month.
Standard Chartered economist Jeff Ng said it was still too
early to call it a recovery, as export
growth to most major economies
was weak.
We still see some headwinds
for export growth at least for the
next six months. We think that
net exports may still pose limited
support to growth in the fourth
quarter, he said in an e-mail.

But DBS Singapore economist

Gundy Cahyadi remained hopeful, saying separately via e-mail:
As long as electronic exports
continue to post decent growth,
we are not too worried about the
export numbers.
We know it is mostly a result
of the weak global demand and
there is not much that the policymakers can do to alter this.
Mr. Cahyadi said GDP growth
this year would likely pick up to
6.1%, against the governments
7-8% goal, while inflation is set to
be relatively low at 2.5%.
And more importantly, the
economy is still very much dependent on the domestic economy. At
this juncture, we continue to view
that the economy is still in a sweet
spot, he said in an e-mail.
GDP grew 5.6% in the first
nine months of 2015 against an
official 7-8% full-year target, but
Mr. Balisacan as early as August
conceded growth could settle between 6-6.5%. In order to hit just
6%, the economy would have to
have grown by 6.9% in the fourth
quarter. PSA is scheduled to release 2015 fourth-quarter and
full-year data on Jan. 28.

Export,

from S1/ 1
Hong Kong (10.9%), China (9.8%)
and Taiwan (7.6%).

BUCKING THE TREND

The countrys positive performance in the sales of semiconductors bucked the international
trend as worldwide sales were
down in November 2015, said
Mr. Balisacan.
Thus, the modest growth in
exports of goods from the electronics and semiconductors
segment is expected to continue
propping up total merchandise
exports.
Sales of manufactured goods,
which made up 90.4% of total
export bill in November, went
up 3.6% to $4.6 billion. Of this,
electronics comprised 54.2% and
grew by 9.3%, accelerating from
the 7.3% rise in October but still
slower than the 26.6% gain a year
earlier.
Semiconductors, which comprised the largest electronics export at 38.3% of the total, rose by
5.7% year-on-year.
Nicholas Antonio T. Mapa,
associate economist at the Bank
of the Philippine Islands, agreed
that the latest export reading

Economy

The

4/S1

EDITOR TIMOTHY ROY MEDINA

WEDNESDAY, JANUARY 13, 2016

Nov. factory output highest in 8 months

duction Index a measure of factory output expanded 7.5% year
on year in the penultimate month
of 2015.
This was slower than the 9.1%
recorded in November 2014, but
was also the fastest since March
2015s 14.9%.
The increased growth in
manufacturing despite the
continued weak global demand
shows the resiliency of our domestic economy, Economic
Planning Secretary Arsenio
M. Balisacan said in a separate

By Jochebed B. Gonzales
Researcher

INDUSTRIAL PRODUCTION in
November grew at its fastest pace
in eight months, fueled by strong
domestic demand, the government reported yesterday.
Preliminary results of the
Monthly Integrated Survey of
Selected Industries of the Philippine Statistics Authority (PSA)
showed that the Volume of Pro-

statement issued by the National

Economic and Development Authority (NEDA).
Mr. Balisacan, who is also
NEDA director-general, expects
the manufacturing sector to end
the year on a positive note on the
back of robust domestic demand,
increased inflow of remittances,
stable inflation, and low fuel
prices.
Year to date, manufacturing
growth averaged 2.6%.
Growth in November came
mainly from the manufacture of

electrical machinery (20.1%), machinery except electrical (29.6%),

petroleum products (12.5%), basic metals (25.1%), and tobacco
products (52.7%).
In contrast, production in
the following industries contracted: food manufacturing
(-10%), printing (-19.7%), furniture and fixtures (-20.6%),
and wood and wood products
(-26%).
In a separate report (see related
story on S1/1), the PSA said manufactured goods comprised 90.4%

of total exports last November,

and grew 3.6% year on year, bucking the 1.1% contraction of total
exports for the month.
Manufactured g oods either go local or for export, and
they sometimes go up because
of local consumption, Sergio
R. Ortiz-Luis, Jr., president of
the Philippine Exporters Confederation, Inc., told BusinessWorld.
Exports are not doing well
because of the markets abroad,
Mr. Ortiz-Luis added.

VOLUME OF PRODUCTION INDEX (Year-on-year growth rates for Manufacturing sector, in %)

20.7
20

11.7
10

19.0
14.5

15

9.8

10.0

17.5

18.8

14.9
12.7

8.9

5.3

12.7

10.8

9.0

10.5

22.8

21.1

20.2

6.0

8.7 9.1
7.6

4.4
-1.0

5.7

7.5
4.7

4.7

2.6

-0.03

2.1

1.8
-1.1

0.1

2.8
1.7

Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov.
2012
2015 -2.1
2013
2014
-1.6
SOURCE: PHILIPPINE STATISTICS AUTHORITY

BUSINESSWORLD GRAPHICS: BONG R. FORTIN

China slump gives BPO boom 10 more years to run CBRE

THE BUSINESS process outsourcing (BPO) industry will
continue flourishing in the Philippines for at least 10 more years,
boosting demand for office as well
as residential space, according to
a real estate advisory firm.
I think the downturn in the
Chinese stock market, and other
markets as well, will only force
multinational [companies] to
outsource more vigorously, CB
Richard Ellis (CBRE) Philippines,
Inc. founder Rick M. Santos told
reporters yesterday.
This will sustain demand for
office space in the Philippines,
whose young and Englishspeaking population make it a
preferred location for BPOs, Mr.
Santos added.

What we see now is cities do

not work in isolation. So when
BPOs come in, that will also
necessitate [demand for] retail,
maybe movie theaters and also
residential.
CBRE expects the demand
for residential space to continue
growing, although the market
presents stronger competition
among developers because of the
higher supply.
From a residential perspective, with infrastructure being limited, public-private partnerships
not moving quickly enough, we
are in a situation where peoples
commutes are getting too long...
so more people would probably
continue to want to live closer to
where they work, Mr. Santos said.

The company, which forms

part of the US-based CBRE Group
Inc., also expects rising labor
costs and other issues hounding
China to provide a boost to the
Philippine manufacturing sector.
As land prices go up in business
districts, they are going out to Sta.
Rosa, Cavite, Clark, Central Luzon.
We see them continue expanding
outside major cities, he said.
But the Philippines will see
stronger growth in its services
sector for now, Mr. Santos said,
noting that establishing a BPO
business costs less at about
$40,000 compared to the $1-million investment needed for a
manufacturing firm.
As the new president of the
American Chamber of Commerce

in the Philippines, Mr. Santos

cited infrastructure and security
among the persisting concerns
for US businesses in the Philippines.
Investors are pretty comfortable from what they have seen
from a governance perspective,
Mr. Santos said. In terms of
policies, there will always be challenges.
The chamber expects the next
administration to continue ensure transparency in the government and accelerate investment
in infrastructure and education,
among others.
There is a great opportunity or a great challenge, Mr.
Santos said. Keith Richard D.
Mariano

Chinas economy as it suffers a painful

slowdown that has convulsed markets.
Beijings decision last week to lower
the value of the yuan against the dollar
to a five-year low added to concerns,
with the leaderships handling of the
crisis being called into question.
This in turn has caused heavy selling
of the Chinese unit, leading the Peoples
Bank of China (PBoC) to step in to buy
yuan and sell dollars, tightening liquidity.
Albert Leung, aHong Kong-based
rates strategist at Nomura Holdings said:
The PBoCs suspected intervention in
the offshore currency market further
tightened the liquidity. Yuan interest

rates are expected to remain highly

volatile in the next couple of days.
But economist Chong Tai-Leung,
executive director of the Chinese University of Hong Kongs institute of global
economics and finance, told AFP the
intervention was a bad idea.
I dont think its a good method
because you hurt your own economy,
he said. Rising interest rates may or
may not curb speculation, but it will hurt
investment.
Mr. Chong said the move could
prompt a further sell-off in the countrys
stock markets, which have already fallen
about 15% so far this year.

The government is running out of

tools. People will lose confidence and
think the government may not have
any more methods to control the stock
market in that case they will sell off,
he said.
The rate rise lifted the yuans value
in Hong Kong, where it is more freely
traded than on the mainland. Last week
it was almost 3% below its rate in
Shanghai.
Its a conscious effort to make funding costs high for speculators, Andy Ji,
a Singapore-based foreign-exchange
strategist at Commonwealth Bank of
Australia, told Bloomberg News.

ORGANIZATION of the Petroleum Exporting Countries

(OPEC) will soon make efforts to
convene before the next scheduled
meeting in June as the slump in
oil prices is hurting producers, including the worlds biggest exporter, Saudi Arabia, said Emmanuel
Kachikwu, Nigerias minister of
state for petroleum resources.
The 13 members of the OPEC
will work toward meeting in early
March, Mr. Kachikwu said in an
interview in Abu Dhabi on Tuesday. Members are already engaged
in informal discussions with some
non-OPEC producers, including
Russia, to join any future production cut to shore up prices, he said.
We are definitely looking at a
time frame in very early March,
Mr. Kachikwu said. You will very
necessarily have to have an OPEC
meeting because the group
first has to meet and decide on
its position before having formal
meetings with other producers to
coordinate a cut, he said.
Benchmark Brent crude closed
at $43 a barrel on the day of the last
OPEC meeting on Dec. 4, and was
trading at $30.98 a barrel at 9:12
a.m. on Tuesday in London. OPEC,
which supplies about 40% of the
worlds oil, effectively abandoned
output limits in December, potentially worsening a glut created
after producers from the US to
Russia and Saudi Arabia pumped
more than demand warranted.

PRICES SLIDING

BW FILE PHOTO

CALL CENTER agents at a business

process outsourcing in Quezon City

Banks borrowing rate for yuan in Hong Kong at record levels

THE RATE at which banks charge each
other to borrow yuan in Hong Kong surged
to a record high on Tuesday, with Chinas
central bank thought to be buying huge
amounts of the unit to fend off speculators.
The overnight Hong Kong Interbank
Offered Rate for the offshore yuan jumped
53 percentage points to almost 67% owing
to tight liquidity. The one-week rate also
surged to 33.8% from 11.%.
But analysts say the move could
backfire and further damage confidence
in the Chinese economy, a key driver of
global growth.
The surge comes as traders around the
world grow increasingly worried about

OPEC may call

emergency
conference in
March Nigeria

The Hong Kong Monetary Authority

is notably absent from the market. Theyre
trying to help the PBoC achieve its objective of converging the yuan spot rates.
The PBoCs decision in August to
devalue the yuan by about 5% sparked
a global rout that wiped trillions off
valuations and shattered traders
nerves.
Last month the International Monetary Fund welcomed the yuan into its
elite reserve currency basket, recognizing the ascendancy of the Asian power
in the global economy and boosting
Beijings dream of internationalizing the
currency. AFP

No OPEC members, including

Saudi Arabia, are happy with the
slide in prices since the groups
last meeting in December, Mr.
Kachikwu said earlier at a conference in Abu Dhabi. He didnt wish
to name the member countries
seeking an early meeting, and
said that in December, Saudi Arabia was supportive of such meeting, if there was consensus for it.
After the lack of consensus at
the December meeting, OPEC
ministers knew oil prices would
fall, Mr. Kachikwu said. High-cost
shale oil producers are showing
resilience to low prices and are
becoming a constant equation in
the oil dynamics, he said.
I certainly hope that it doesnt
go below $30 for the sake and survival of everybodyMr. Kachikwu
said. My perception is that we
will see it get worse before it gets
better. Oil is seen ending the year
at $40 to $50 a barrel, he said.
Bloomberg

No industrial revival without addressing energy issues Balisacan

ENERGY REMAINS a major constraint for manufacturing, which
is more electricity-intensive than
most sectors of the economy, the
economic planning secretary said
in discussing what could possibly
derail the governments drive to
boost industrial production.
There are many opportunities [in manufacturing]. We
know what has gone wrong in
the past. We were not able to
move manufacturing as much as
our neighbors did, said Arsenio
M. Balisacan, director-general of
the National Economic and Development Authority (NEDA),
on the sidelines of an energy
conference at the New World
Hotel in Makati City.
The issues all the time is infrastructure, high cost of doing
business, regulatory issues and
the cost of energy, he said.
Mr. Balisacans comments
follow the Trade departments
announcement last week that it
would be focusing more on the
governments manufacturing resurgence program, which aims
to rebuild the existing capacity of
industries, bolster new ones, and

keep the competitiveness of those

with comparative advantage.
The program also seeks to
build on agriculture-based manufacturing industries that generate employment. It is expected
to promote inclusive economic
growth as it is the manufacturing
sector is source of much-needed
jobs.
We have been pushing for
this since the beginning of this
administration because our ability to generate high-quality jobs
depends so much on our ability to
revive our industries, Mr. Balisacan said.
The Department of Trade
and Industry has said that the
agriculture sector would corner
the biggest share of the program
at P14 billion. The other sectors
with big allocations are the Philippine Coconut Authority at P7.1
billion, the Department of Labor
and Employment at P1.2 billion.
A smaller amount of P376 million
has been set aside for the Department of Energy (DoE).
In his prepared speech yesterday, Mr. Balisacan said: Energy
remains a crucial element in the

BW FILE PHOTO

MAGAT Hydroelectric Power Plant in Northern Luzon

countrys endeavor to stay on its
current growth trajectory. However, the sector is faced with many
policy, investment, and regulatory issues affecting incentives
and efficiency within the sector
and across the economy.

These include coordinations

between the public sector and the
private sector, and the seemingly
incongruous objectives of the
Electric Power Industry Reform
Act and the Renewable Energy
Act. It is then through research

and discussion that we can equip

the country with evidence-based
energy policies to address all of
these, he added.
On the sidelines of the conference, Mr. Balisacan gave an
update on the P14.721-billion

Batangas-Manila 1 Natural Gas

Pipeline project of the Philippine
National Oil Co. The project has
been lined up for NEDA board
approval.
He said there were certain issues raised by the Energy department, and that NEDA was waiting
for the re-submission from Secretary Zenaida Y. Monsada.
It has to do with the assumptions of the project, he said.
We are aiming it as a PPP
(public-private partnership)
project but DoE wanted to revisit other options. Its up to the
DoE and the proponents. NEDA
is facilitating the process, making sure it meets all the requirements, he said.
The two-day conference was
organized by the Economic Policy
and Development Program, an
initiative launched in 2014 for
research, policy development
and advisory, capacity-building,
and communication. It is funded
by the United States Agency for
International Development and
implemented by the UPEcon
Foundation, Inc. Victor V.
Saulon

Economy

The
WEDNESDAY, JANUARY 13, 2016

Fourth-quarter growth at least

6% on govt spending ING
By Melissa Luz T. Lopez
Reporter

GROWTH in the fourth quarter was likely the fastest in 2015,

ING Bank said, due to favorable
developments in government
spending late in the year.
ING Bank senior economist
Jose Mario I. Cuyegkeng said
gross domestic product (GDP)
growth likely surpassed the third
quarters 6%.
We expect at least a 6% 4Q
2015 GDP growth, according to
Mr. Cuyegkeng s latest market
view. Domestic demand is likely
to remain strong not only because
of government spending but also
strong private sector spending
growth, favorable construction
activity as well as steadily growing
service sector. Election spending
has already started and is likely to
accelerate.
Growth averaged 5.6% at endSeptember, after a 5% rise in the
first quarter and 5.8% in the second. The target range is 7%-8%

for the year, with the economy

needing to hit 6.9% in the last
three months to ensure 6% expansion.
The average October-November spending growth in 2015
reached 18%-21% year-on-year
a major reversal of flat growth in
4Q 2014. The rebound in government spending delivers a boost to
4Q GDP, the economist added.
State spending in November
was P171.42 billion, Treasury
data showed, bringing year-todate expenditure growth to 13%
at P1.992 trillion. This remained
well below the P2.335-trillion
goal for the period.
The 11-month budget balance
was a P46.545-billion deficit,
well below the P246.67 billion
programmed for the period. The
deficit cap for the year is P283.69
billion.
The Bangko Sentral ng Pilipinas will likely keep monetary
policy settings unchanged early
this year with inflation within expectations, Mr. Cuyegkeng said,
but warned of possible confusion once the central bank shifts

to the interest rate corridor system by the second quarter, affecting sentiment and even the pesos
performance.
Mr. Cuyegkeng sees the central bank adjusting policy rates
in three tranches to achieve a
100-basis point (bps) spread from
the current 350 bps.
As planned, the special deposit
account (SDA) rate will be the
floor, currently at 2.5%. The overnight borrowing or reverse repurchase (RRP) rate, currently 4%
will be the key policy rate, while
the repurchase rate, now 6%, will
be the ceiling.
Implementation (of the corridor) that involves a reduction
of the RRP rate even as the SDA
rate is steady could be interpreted by the markets as accommodative.
Meanwhile, Natixis Asia Research is calling 2015 growth at
5.7%, down from 6.1% a year earlier, though it believes the economy
will outpace the region this year.
It sees 5.9% growth in 2016
according to projections stated in
a report: The Philippines: A Win-

ner of China and Japans Excess

Capacity?.
Receipts from the business
process outsourcing sector and
from remittances the two major sources of income could
have reached a point of fatigue,
Natixis said, arguing for a shift to
agriculture, tourism, and manufacturing.
We expect the (peso) to outperform in 2016 due to a slight
uptick of growth. Low oil is a boon
for consumption in the country,
said analysts Trinh D. Nguyen
and Gary Ng. The Philippines
has an easy problem of investing
its excess savings to ensure that
growth reaches potential. So yes,
the Philippines is well-positioned
to be a big winner.
The report also cited ripe
conditions for an infrastructure
investment boom by 2016, but
the Philippines will still not take
up its full 5% of GDP allotment
for infrastructure after a history of underspending, and a
possible pause in private sector
investment pending the election
outcome.

Food, transport, travel are BIMP-EAGA priorities

By Carmelito Q. Francisco
Correspondent

DAVAO CITY The Brunei Darussalam-Indonesia-MalaysiaPhilippines-East ASEAN (Association of Southeast Asian Nations)
Growth Area (BIMP-EAGA)
is putting flesh into the policy
framework that is intended to
guide the sub-regions development strategy from 2017 to 2025
by identifying priority projects to
receive investment.
Romeo M. Montenegro, director for investment promotions

and public affairs of the Mindanao Development Authority,

said officials of the four member
countries will meet here on Feb.
23-26 to draft the programs for
the framework, approved last
month in Kota Kinabalu.
Our priorities are consistent
with developing Mindanao and
Palawan and will provide us leverage with the national government
to ensure that the two areas are
developed, Mr. Montenegro said.
The projects to be proposed
will develop Mindanao and Palawan as food baskets, destinations,
and connecting points within the
ASEAN Economic Community.

If we improve the ports in

Mindanao and Palawan, it will
also result in an increase in traffic
across BIMP-EAGA and across
ASEAN, he said.
At the Kota Kinabalu meeting,
the four countries agreed on the
BIMP-EAGA Vision 2025, which
is to develop a resilient, inclusive, sustainable and economically competitive sub-region.
We continue to recognize that
improvement in connectivity is
vital for the seamless movement
of goods and people from EAGA,
the group said in a joint statement.
Mr. Montenegro said the project planned for the Philippines

CARMENCITA A. CARILLO

EUROPEAN AMBASSADOR to the Philippines Franz Jessen (center) visits the Davao City Public Safety
and Security Command Center on Jan. 11, where he was given a briefing by local officials on investment
opportunities and the city-wide computerized security system.

Davao told to build better ports

to attract more EU investment
By Carmencita A. Carillo Correspondent
DAVAO CITY Better and bigger ports are
needed in the Davao Region to attract more
investment from member nations of the European Union (EU), according to the EUs top
representative in the country.
EU Ambassador to the Philippines Franz
Jessen, who visited the city for the first time
on Jan. 11-12, said European businesses are
considering ventures in the region after the
completion of a proposed free-trade agreement (FTA) between the EU and the Philippines, but logistics concerns will first have to
be addressed.
Logistics and the issue of ports have to
be looked into to make sure bigger ships can
operate here, Mr. Jessen said after hearing a
briefing by local officials on investment prospects in the city on Monday.
Ivan C. Cortez, acting head of the Davao City
Investment and Promotion Center, assured
Mr. Jessen that a P40-billion reclamation project by Mega Harbor Development Corp., which
the city government plans to sign an agreement for within the year, includes a modern
port that can accommodate larger vessels.
Mr. Cortez, however, did not mention the
planned P18.99-billion modernization project
for the existing Sasa Port in the city, which will
be undertaken by the Department of Transportation and Communications through the
public-private partnership scheme.
Mr. Jessen said the conclusion of an FTA
will expand trade between the EU and the
Philippines, benefiting areas such as Davao.

The growth of the Philippine population

has substantially made it a larger economy and
this is important for Europe, he said.
The EU and the Philippines agreed to start
formal negotiations for an FTA last December
and the first round of discussions are expected
within the first half of this year.
The visit of Mr. Jessen, who was also in Cotabato City last month, was partly intended to
reaffirm the EUs commitment to contribute
to development initiatives in Mindanao.
With him were EU Commission Desk Officer
Thomas Wiersing and EU Delegation to the
Philippines Minister Counsellor Mattias Lentz.

IP HEALTH PROJECT

Mr. Jessen also checked on developments at

the Pamulaan Foundation at the University of
South Eastern Philippines.
Pamulaan Foundation is the EUs partner organization in the implementation of
the Indigenous Peoples MNCHN (Maternal,
Neonatal and Child Health and Nutrition)
project that is intended to address the needs
of indigenous peoples and other marginalized
communities in Mindanao.
The IP MNCHN is being implemented in
the provinces of North Cotabato, Compostela
Valley, Bukidnon, Agusan del Sur and Zamboanga del Sur.
In a project brief, Estelito L. Ocampo, IP
MNCHN project communication specialist,
said the project has led to the formulation of
the Ancestral Domain Investment Plan for
Health, which has become the basis of the
local government unit fund allocation for IP
health programs and services at the municipal
and provincial levels.

will be presented to the next administration.

This is why it is critical to
identify the key projects so that
these can be integrated into the
priorities of the incoming administration, he said.
The first BIMP-EAGA blueprint was drafted for 20122016.
Under this framework, the national government implemented
several infrastructure projects,
including the upgrade of the road
between the cities of Davao and
General Santos, which both have
seaports, and the port in Puerto
Princesa City.

S1/5

Republic of the Philippines

PHILIPPINE RECLAMATION AUTHORITY
(Public Estates Authority)

7/F Legaspi Towers 200 Bldg., 107 Paseo de Roxas St., Legaspi Village, 1226 City of Makati
Tel. Nos. (02) 817-4711 to 13; (02) 813-1441 to 45; Facsimile No. (02)815-2662; Website: www.pea.gov.ph

Request for Expression of Interest for the

PROGRAMMATIC ENVIRONMENTAL ASSESSMENT, PLANNING AND ENGINEERING
STUDIES FOR THE COASTAL ADAPTATION STRATEGY FORMULATION IN THE
MANILA BAY AREA (PBCONS 15-004)
1. The Philippine Reclamation Authority (PRA), through its 2015 Corporate Operating
Budget (COB), intends to apply the sum of Four Hundred Eight Million Four
Hundred Thirty One Thousand Two Hundred Seventy Nine Pesos and 86/100
(Php408,431,279.86) being the Approved Budget for the Contract (ABC) to payments
under the contract for the Consultancy Services for the Programmatic Environmental
Assessment, Planning and Engineering Studies for the Coastal Adaptation Strategy
Formulation in the Manila Bay Area. Bids received in excess of the ABC shall be automatically
rejected at the opening of the financial proposals.
2. The PRA now calls for the submission of eligibility documents for the Consultancy
Services in undertaking the Programmatic Environmental Assessment, Planning and
Engineering Studies for the Coastal Adaptation Strategy Formulation in the Manila Bay
Area. Interested consultants may purchase Eligibility Documents at a non-refundable fee
of Fifty Thousand Pesos (Php50,000.00) from December 29, 2015 to January
25, 2016 at 7th Floor, Legaspi Towers 200 Bldg., 107 Paseo de Roxas Street, Legaspi
Village, Makati City.
3. Consultants who purchased Eligibility Documents must submit their accomplished
Eligibility Documents on or before January 25, 2016 at 12:00 oclock p.m. at the same
address above. Applications for eligibility will be evaluated based on a non-discretionary
pass/fail criterion. The Opening of the Eligibility Documents will be on the same date
at 1:00 oclock p.m. at the PRA Conference Room, 6th Floor Legaspi Towers 200 Bldg.,
107 Paseo de Roxas Street, Legaspi Village, Makati City.
4. The PRA Bids and Awards Committee shall draw up the short list of consultants from
those who have submitted eligibility documents and have been determined as eligible in
accordance with the provisions of Republic Act 9184 (RA 9184), otherwise known as
the Government Procurement Reform Act, and its implementing Rules and Regulations
(IRR). The short list shall consist of at most five (5)* prospective bidders who will
be entitled to submit bids. The criteria and rating system for short listing of eligible
consultants will be done based on the following criteria: experience of the consulting
firm, qualifications of principal and key staff, and current workload relative to capacity.
5. The Consultant must be a reputable firm with at least ten (10) years of consulting
business operation. In case of a Joint Venture (JV) or Consortium/Consortia, any**
member firm should have at least ten (10) years of consulting business.
6. Bidding will be conducted through open competitive bidding procedures using nondiscretionary pass/fail criterion as specified in the IRR of RA 9184.
Bidding is open to all interested bidders, whether local or foreign, subject to the
conditions for eligibility provided in the IRR of RA 9184.
7. The Procuring Entity shall evaluate bids using the Quality-Cost Based Evaluation (QCBE)
procedure. Bids whose technical proposals pass the minimum technical rating of seventy
five percent (75%) shall have its financial proposals opened and evaluated. The technical
proposal shall carry eighty five percent (85%) in the bid evaluation. The criteria and
rating system for the evaluation of bids shall be provided in the Instructions to Bidders.
8. The contract shall be completed within fourteen (14) calendar months after receipt of
Notice to Proceed.
9. The PRA reserves the right to reject any and all bids, annul the bidding process, or not
award the contract at any time prior to contract award, without thereby incurring any
liability to the affected bidder or bidders.
10. For further information, please refer to:
ENGR. FLORO C. URCIA
Chairman, Bids and Awards Committee
7th Floor, Legaspi Towers 200, Paseo de Roxas St., Legaspi Village, Makati City
Tel Nos. (02)817-4711 / (02)459-5000 Facsimile No. (02)815-2662
www.pea.gov.ph
January 12, 2016
(Sgd.) FLORO C. URCIA
BAC Chairman
* amended to at most five (5) from minimum of three (3) prospective bidders as previously published in accordance to
Sec. 24.5.2 of the Revised IRR of R.A. 9184
** amended to any from each member firm as previously published

6/S1

Opinion

EDITOR ROBERT J.A. BASILIO, JR.

WEDNESDAY, JANUARY 13, 2016

ATATURK AND
THE BANGSAMORO

#bworldfeed
ASEAN @ASEAN

Most of the #ASEAN population are young people

below the age of 30.

appy New Year, dear

readers!
Am back, refreshed
after vacationing in Turkey with
my family. I will, in the very near
future, extol the beauty and culture of Turkey.
Today, we, who are immersed
in autonomy for the indigenous
Muslims of the Philippines, can
learn much from the initiatives of
the Father of the Turks Mustafa
Kemal Ataturk.
First a brief description
of Mustafa Kemal before his
presidency.
Blue-eyed Mustafa Kemal
was born in 1881. Intelligent and

strong willed, he was an army

officer ended the reign of the
Ottoman sultanate and an independent Republic of Turkey
out of the ruins of the Ottoman
Empire. He served as Turkeys
first president from 1923 until
his death in 1938. Responsible for
implementing reforms that rapidly secularized and westernized
the country, Mustafa Kemal was
given the name Ataturk or Father of the Turks by the Turkish
General Assembly.
While on vacation, marveling at the level of development
of Turkey, our tour guide Koray
educated us on the role played

MY CUP OF LIBERTY
Provisions on feed in tariff (FIT) and renewable
portfolio standards (RPS) in the Renewable
Energy law should be removed.

Yellow Cab Pizza to enter China market l owl.li/

WTy2Y

Breaking News Feed @pzf

BREAKING NEWS - HISTORIC: Nobody won

tonights Powerball jackpot. Wednesdays
estimated Powerball drawing jumps to $1.3 billion.

ADB Publications

@adbpublications
Conditions of cash transfer adapt to the times, ex.
climate resilience activities @dinkysunflower
#CCTConference

CHINA

@china
The 10 most interesting things Jack Ma said last
year ow.ly/WTMhj by @ChinaGeeks

MITSloan ExecEd @MITSloanExecEd

New from our blog: Are you due for a digital
detox? mitsin.co/WU9IE

World Economic Forum @wef

Can air pollution affect your earnings, as well as

your #health? wef.ch/1OKDVQe #environment

UBS @UBS

Urbanization: One of three drivers for longer term

investment ideas #UBSHouseView #CIO ow.ly/
Wnu2R

he problem confronting
Senator Grace Poe had
its antecedents in certain
provisions of the Dual Citizenship Law, RA 9225, that FilipinoAmericans objected to, even as we
lobbied hard for its passage.
I was part of a group that met
with both President Gloria Macapagal-Arroyo and then Senate
President Franklin M. Drilon to
appeal for the deletion of the provisions in the law that required renunciation of foreign citizenship
in order to run for public office or
to accept a key government post.
Section 5(2) of the RA 9225
states: Those seeking elective public office in the Philippines shall
meet the qualifications for holding
public office as required by the
Constitution and existing laws
and, at the time of the filing of the
certificate of candidacy, make a
personal and sworn renunciation
of any and all foreign citizenship
before any public officer authorized to administer an oath;

Section 5(3) states: Those appointed to any public office shall

subscribe and swear to an oath
of allegiance to the Republic of
the Philippines and its duly constituted authorities prior to the
assumption of office; Provided,
that they renounce their oath of
allegiance to the country where
they took that oath.
We felt that these restrictive
provisions would result in a waste
of valuable human resources: potential public servants imbued
with the values, work ethic, civic
spirit and training developed
from living in more advanced
countries like the US.
Quite frankly, much as we
were eager to serve the land of
our birth, few of us were prepared
to renounce our US or foreign
citizenship. We had our reasons,
most of them valid.
The pseudo-nationalists and
Facebook patriots who read this
piece will likely criticize us for
(a) turning our backs on the

RAUL L. LOCSIN
Founder

ROBY ALAMPAY
Editor-in-Chief

TEMPERATURE RECONSTRUCTION*
FOR NORTHERN HEMISPHERE, 1-2000 AD
Temperature (degrees Centigrade)
Anomaly relative to the 1961 - 1990 mean

limate changes from warming to cooling to warming

to cooling, in endless natural and cyclical pattern. A period
of global warming for decades is
followed by a period of global cooling, which also lasts for decades. So
global warming has precedents, it
is not unprecedented.
There was global warming in
the past when there was not even
a single car or coal power plant.
This chart shows that modern
warm period that peaked in the
last century was not exceptional
or scary. (See Table 1)
Energy policies in many countries have been heavily distorted
by governments to fight manmade or anthropogenic global
warming and climate change.
But how can governments,
the United Nations and various environmental groups fight
something that naturally occurs,
like day and night, like wet-dry or
winter-spring-summer-fall seasons, like El Nio-La Nia cycles?
This will be my main argument when I present my paper at
the Energy Policy Development
Program (EPDP) Conference
2016, with the theme Toward
Inclusive and Sustainable Energy
Development that would be held
at New World Hotel in Makati
City, Jan. 12-13, 2016.
The recent extreme or severe
flooding and drought that people
say as proof of man-made
warming and climate change is
not true. As shown in the above
figure, the Little Ice Age from
1200s to 1700s showed severe
cooling and flooding, brutal winter for decades and centuries.
In the Philippines, many instances of severe flooding killed
thousands of Filipinos many

0.4

Roman
warm period

Medieval
warm period

Table 1

Modern
warm period

0.2
0
-0.2
-0.4
-0.6

Little Ice Age

-0.8
1
200
Year (AD)

400

600

800

1000

1200

1400

1600

THERMOMETERS

1800

2000

SATELLITES

SOURCE: DR. ROY SPENCER, SENATE EPW HEARING: CLIMATE CHANGE: ITS HAPPENED BEFORE, JULY 19TH 2013

*Ljungqvist, F.C. 2010. A new reconstruction of temperature variability in the extra-tropical Northern Hemisphere
during the last two millennia. Geografiska Annaler: Physical Geography, Vol. 92 A(3), pp. 339-351, September 2010

Should dual citizens

be allowed to run
for public office?
Motherland and (b) wanting
to have our cake and eat it too.
But, hypocrisy aside, I bet that
many of them would jump at the
opportunity to get a green card
and US citizenship and not
necessarily due to lack of love for
the Philippines.
In this regard, those who
have severely criticized Poe for
renouncing her US citizenship
in order to get appointed chairman of the Movie and Television

with Germany and AustriaHungary. They lost the war.

However, while the Ottoman
Sultanate lost, young army officer
Mustafa Kemal won his battles.
He was able to unify the many
tribes of the empire, even getting
children, women, and old men to
actively support the war.
In 1915, Mustafa Kemal became internationally known
as the leader who stopped the
powerful British and French
troops from taking Istanbul in
Gallipoli. He was soon promoted
to brigadier-general and won
battles eastern Turkey, Syria,
and Palestine.

Climate
change and
the need for
cheaper,
stable
energy

BIENVENIDO S. OPLAS, JR.

BusinessWorld @bworldph

by Ataturk in uniting the peoples

that now populate modern Turkey and the reforms that he initiated and implemented.
The Ottoman Empire which
ruled for 600 years, covered
Egypt, Greece, Bulgaria, Romania, Macedonia, Hungary,
Israel, Jordan, Lebanon, Syria,
and parts of the Arabian Peninsula (such as Saudi Arabia)
and North Africa (from Egypt
to Algeria. Unfortunately, by
the 1900s, the once powerful
Empire had lost its territories
in Europe and Africa. During
World War I (1914-18), the Ottoman Sultan allied the Empire

Review and Classification Board

(MTRCB) should get a reality
check. The decision she made was
not an easy one and only a few
would have done what she did.
I frankly think that she should
be given credit for making that
difficult decision. I doubt that she
had any inkling at the time that
she would run for senator and,
subsequently, for president.
At any rate, President Arroyo,
prevailed upon our lobby group to

accept the proposed bill in spite of

the restrictive provisions based on
the half a loaf principal (Half a
loaf is better than no loaf at all).
She pointed out that it was our best
chance to have such a law passed.
You can always have it
amended later, she said. But,
at least, you will have an existing
law to work on. Mr. Drilon said
as much.
All of us in the original lobby
group still believe that RA 9225

The Allied powers divided

the Ottoman Empire amongst
them, separated all Arab provinces, Armenia and Kurdistan
from the Ottoman Empire.
They gave the region surrounding Smyrna (now Izmir) to the
Greeks.
However, Mustafa Kemal had
already organized an independence movement based in Ankara. The sultan, based in Istanbul, sentenced Mustafa Kemal to
death. Mustafa Kemal rallied the
military and the populace behind
his war for independence. He
stopped the Greeks from claiming Smyrna, forced the British to
negotiate a new peace treaty, and
eventually expelled the Sultan
and his people from Turkey. The
Grand National Assembly based
in Ankara, led by Mustafa Kemal,
passed a resolution ending the
rule of Ottoman Empire.
A new peace treaty (July 1923)
recognized an independent
Turkish state. By October, the
Grand National Assembly pro-

SURVEIL

AMINA RASUL
Turkish President Mustafa Kemal, very early on, saw the role
of religion as a major obstacle to modernity and democracy.
He thus sought to reduce the influence of Islam in public life
starting with public appearances.
claimed the Republic of Turkey
and elected Mustafa Kemal as its
first president.
If the story of Mustafa Kemal
ended there, he would one of a
handful of world leaders who
won wars for independence and
became political leaders. But
Mustafa Kemals work to forge a
modern Turkey had just started.
As President, he strived to
change the world-view of his
people from a collection of tribal
groups, majority of whom were
devout Muslims, to a united Turkish nation of various cultures and
beliefs. He had already ended the
rule of the sultanate and ushered
in democracy. He now sought to

Catastrophic flooding in the Philippines in 1895 and 1912.

SOME ENERGY INDICATORS

FOR SOUTH EAST ASIAN ECONOMIES

Table 2

ASEAN + HK
Population TPES*/Population Electrical Consumption

(million) (toe/capita) (kWh/capita)
Indonesia 250.0 0.85
792
Philippines 98.4 0.45
686
Vietnam 89.7 0.67
1,306
Thailand 67.0 2.00
2,487
Myanmar 53.3 0.31
164
Malaysia 29.7 2.99
4,474
Cambodia 15.1 0.39
220
Singapore 5.4 4.83
8,840
Brunei 0.4 7.28
9,553
Hong Kong** 7.2
1.94
5,933
* TPES total primary energy supply
** Not ASEAN member; Laos not included in KWES annual reports

decades ago, which is similar to

these reports at the turn of the
last 2 centuries. (See photo)
People need cheaper, more
stable electricity supply to deal
with more frequent flooding
and severe monsoon rains. More
farmers will have to resort to
greenhouse farming, hydroponics farming, elevated fish tanks,
to minimize crop losses and stabilize food production and prices.
Greenhouse farming can be energy intensive because of the controlled temperature inside the
covered structure. The industrial
and services sectors of the economy need to expand faster with
cheaper and stable electricity,
give more jobs to more people, so

they can build stronger, concrete

houses in good location so they
can be spared from more frequent
heavy rains and flooding.
Unfortunately, the Philippines
still suffers from some form of
energy poverty compared to
many of its neighbors in the
region. Even new comer and
socialist Vietnam has electricity
consumption per capita 2x that of
Philippines. (See Table 2)
Moreover, the Philippines
has the second highest electricity prices in Asia, next to Japan.
So succeeding policy measures

should be geared towards reducing the price and expanding

power supply, and inventing new
schemes that will further raise
the price should be the least priority of the government.
To fight energy poverty and
high electricity prices in the Philippines, the following are proposed, among many others.
One, take advantage of low
prices of fossil fuels like oil,
natural gas and coal, to expand
power generation.
As noted in a previous paper
in this column, Paris COP:

should be amended to allow dual

citizens to run for public office or
to occupy key government posts
without having to renounce our
foreign citizenship, as long as we
have retained or reacquired our
Philippine citizenship. There are
many international precedents to
support this position. Israel, for
one, does not require renunciation
of US citizenship to serve in the Israeli government and the military.
The reverse is even more common, namely, Israeli-American
citizens occupying sensitive posts
in the US government without
having to renounce their Israeli
citizenship, among them, former
Deputy Defense Secretary Paul
Wolfowitz, Michael Chertoff who
headed the Department of Homeland Security, and former Secretary of State Henry Kissinger.
Of course, the most prominent
dual citizen of them all is Arnold
Schwarzenegger, who retained
his Austrian citizenship when he
became governor of California.

The problem with retaining

the restrictive provisions in
RA 9225 may be likened to the
oft-rejected proposal to pass
a Divorce Law. Many of those
who cannot legally separate
from their Number One resort
to the next best thing which
is to maintain a Number One-A
and even a Number One-B. Even
the Church has provided a way
around divorce by allowing annulment an option that only
the wealthy and influential can
avail of.
In the case of the restrictions
imposed by RA 9225, there have
been many instances when those
determined to run for elective office in the Philippines have complied with the law by renouncing
their foreign citizenship before
a Philippine official. However,
that is not valid under US law.
Renunciation of US citizenship
has to be made before an American consular officer outside of the
United States.

AD LIB

WILFREDO G. REYES Managing Editor l ALICIA A. HERRERA, CATHY ROSE A. GARCIA, RICKY S. TORRE, BETTINA FAYE V. ROC Associate Editors l MARIA ELOISA I. CALDERON Editor-at-Large
ROBERT J.A. BASILIO, JR. Opinion and Engagement Editor FRANCISCO P. BALTAZAR Foreign News Editor l TIMOTHY ROY MEDINA Online Managing Editor l MIRA CATHERINE B. GLORIA Online Editor l BRIAN M. AFUANG Visual Editor

SOURCE: INTL. ENERGY AGENCY (IEA), KEY WORLD ENERGY STATISTICS 2015

bring his country and his people

into the modern age.
To do this, he had to open the
minds of his people to accept
modernity. He saw that the path
to progress and modernity was
blocked by ignorance (only 5% of
the population were literate), poverty and blind devotion to religion.
He had a new alphabet developed, based on the Latin
alphabet and scrapping the
Arabic-Persian one utilized by
the Ottoman Empire, which he
thought to be poorly suited to the
Turkish vocabulary.
While the reformist Young
Turks had proposed before the
use of the Latin script, it was Mus-

Emission cut commitment vs

energy needs last Nov. 26, 2015,
these countries have more than
90% dependence on fossil fuels
(coal, natural gas, oil) as of 2012:
Hong Kong, Malaysia, Singapore
and Thailand. Indonesia has
89% dependence.
Vietnam has only 50%+ dependence because 44% of its electricity is from hydro. South Korea
and Taiwan have high to modest
use of nuclear power.
Two, reduce government bureaucracies, both national and
local, in the energy sector. A baseload power plant would require
nearly 200 permits and signatures to be constructed. This has
become a disease in government,
that no one should move or start
anything unless they get the bureaucrats signatures.
Three, the Renewable Energy (RE) Act of 2008 (RA 9513)
should be drastically revised.
In particular, the provisions on
feed in tariff (FIT) which means
guaranteed higher price, and
renewable portfolio standards
(RPS) which means guaranteed
minimum percentage of renewables, should be removed.
FITs introductory price that
was passed on to the consumers
in the Philippines from February to December 2015 was only
P0.04/kWh. That was not sufficient because there have been
many wind and solar plants that
came on stream, based on calculations by some players. So consumers must be prepared to pay
something like P0.13 to P0.20/
kWh sometime this year.
Energy precedes development.
We cannot have strong and
sustainable growth and job creation if there is not enough electricity for the people and their
businesses, and if electricity
prices remain high and continue
to rise further. n
BIENVENIDO OPLAS, JR. is the head of
Minimal Government Thinkers, and a Fellow of
the South East Asia Network for Development
(SEANET).
minimalgovernment@gmail.com

GREG B. MACABENTA
The pseudo-nationalists and Facebook patriots who read this
piece will likely criticize us for (a) turning our backs on the
Motherland and (b) wanting to have our cake and eat it
too. But I bet many of them would jump at the opportunity to
get a green card and US citizenship and not necessarily due
to lack of love for the Philippines.
This must have been why Poe,
after having renounced her US
citizenship before a Philippine official, decided to do it again before
a US consular officer.
Some would question why
foreigners should be allowed
to run for public office or be appointed to key government posts
in our country. That begs another
question: Why not?
Arent we one of the main
reasons for the booming Philippine economy? Shouldnt we
have a say in the governance of

BusinessWorld Publishing Corporation, 95 Balete Drive Ext.,

New Manila Quezon City, Metro Manila, Philippines 1112

Editorial (+632) 535-9919

editor@bworldonline.com

a country that we are supporting with our hard work and long
distance devotion?
Another question that invariably follows that first one is,
Arent there enough competent
and qualified Pinoys available locally for those positions?
If I were to answer that question in a truthful and forthright
manner, some folks would be
insulted. Suffice it to say that
those competent and qualified
individuals are not managing the
Department of Transportation

Advertising (+632) 535-9941

advertising@bworldonline.com

Get more content online:

www.bworldonline.com

tafa Kemal who made it happen. A

language commission was established to create the Turkish language was established, resulting
in the current 29-letter alphabet.
Next, he made attendance in
school mandatory for children
and funded the building of public
schools and training of teachers.
When he assumed the Presidency in 1923, literacy level was
only 5%, according to our knowledgeable guide Koray. Today,
UNESCO cites Turkish literacy at
95.7%. He gave rights to women,
marrying a modern-educated
woman who wore western clothes
to set an example. He mandated
equal access to education and
opportunities, bringing women
into politics and governance. 17
women deputies entered parliament during the 1935 elections.
Today, women occupy over 17% of
seats in the parliament.
To fight poverty, Mustafa
Kemal had to look to his former
enemies and establish alliances
for trade, investment and tech-

Like us on Facebook:
www.facebook/BusinessWorldOnline

nology. He would visit rural areas,

talk to small farmers to encourage them to adopt modern farming techniques.
Mustafa Kemal, very early
on, saw the role of religion as a
major obstacle to modernity and
democracy. He thus sought to
reduce the influence of Islam in
public life starting with public
appearances. He had already deposed the sultan or caliph, who
was not only the political leader
but also spiritual leader of the
Muslim community.
When he married, no Muslim
cleric (imam) was present. He
banned the use of the veil in public
offices and required that the call to
prayer be in Turkish rather than
Arabic. His parliament approved
a Constitution and established
European-style law codes, abolishing sharia (Islamic law) as the
basis for governance and justice.
When he died, the reforms
that he had initiated had started
to take root and modern Turkey began to emerge. Thus, the

Follow us on Twitter:
@twitter.com/bworldph

S1/7

grateful nation gave him the surname Ataturk.

Today, the political leaders of
Turkey seem to be moving away
from Ataturks vision of a secular,
democratic and modern Turkey
and returning to governance
heavily influenced by religious
leaders. Will Turkey abandon the
vision of their Father?
Here at home, I look at the
conditions of indigenous Muslims and realize how similar our
conditions are to Turkey during
Ataturks time. We live in a democracy but in the areas of conflict, Islam as the basis for governance and justice is the rallying
cry of rebels and citizens. What
lessons can we learn from Ataturk
and Turkey today? n
(continued next week)
AMINA RASUL is a democracy,
peace and human rights
advocate, president of the
Philippine Center for Islam
and Democracy.
aminarasul@yahoo.com

Something to lien on
T

Notice of Tax Lien, which lien

he National Internal
may have been already canceled
Revenue Code of 1997
or erased, may be in a dilemma
(Tax Code) provides
on getting a clean title to the
a myriad of remedies either
newly-acquired encumbered
civil or judicial, which the Buproperty. Does he go to court to
reau of Internal Revenue (BIR)
initiate an action to quiet title
can choose from to collect taxes
from taxpayers.
to get an Order canceling the
Among these civil remedies
tax lien and lifting the Notice of
is a tax lien on all the taxpayers
Tax Lien? Can he simply go to
properties, which is automatithe BIR for the same objective?
cally created,
The power
by operation of
or authority
law, in favor of
to lift a Notice
the State, from MHEALLER T. YCONG
of Tax Lien is
the time the
not expressly
tax becomes due and payable.
provided in the Tax Code. HowThe purpose of this lien is to reever, Section 207 of the same
serve status quo until collection.
law grants the CIR the power to
To be effective against third
lift warrants of distraint or levy,
persons, the Commissioner of
which are also among the civil
Internal Revenue (CIR) files
remedies to collect taxes. While
for the annotation of a Notice
Section 207(B) is silent, it is necof Tax Lien in the office of the
essarily implied that the CIRs
Register of Deeds of the provauthority extends to cancellaince or city where the property
tion of an annotation of lien. The
is situated. The tax lien attaches
power of the BIR to administer
to the property even if the same
taxes pertains to the proper enis no longer in the hands of the
forcement of the Tax Code.
delinquent taxpayer.
In relation to Section 2
Naturally, a tax lien attaches
thereof, the BIRs mandate is
for as long as the deficiency taxes
not only to collect taxes, but
and corresponding interests and
also to effectively ensure the
surcharges, if any, remain unpaid.
Tax Code is properly enforced.
Hence, payment of the unpaid taxThis necessarily includes the
es constitute as a ground for the
lifting of the Notice of Tax Lien
cancellation of the tax lien. The tax
when the tax lien has been eflien is also canceled when there
fectively canceled.
is availment of tax amnesty, or if
Also, it can be argued that the
there is no finding of tax deficienpower to lift a Notice of Tax Lien
cy at all, as in a void assessment
falls under the other matters
(Chemfields, Inc. v. CIR, CTA Case
jurisdiction of the BIR, under
No. 4840, 22 April 1996), and even
Section 4 of the Tax Code. The
prescription of the BIRs right to
underlying issue in the lifting
collect the deficiency taxes. Once
of a Notice of Tax Lien requires
prescription sets in, the taxpayers
expertise of the BIR. The deterliability ceases and consequently,
mination of the propriety of the
the tax lien is erased.
tax lien and the lifting thereof is
However, granted the tax lien
governed by the Tax Code, would
is canceled, does this automatisprout several incidental tax iscally result to the lifting of the
sues, which under our system
Notice of Tax Lien annotated on
are not expected to be resolved
the property?
by regular courts and are propA third person purchaser
erly under the jurisdiction of the
of a property annotated with a
BIR. Hinged on the administra-

AMICUS CURIAE

& Communications, as well as a

number of government agencies.
The fact is that there are thousands of overseas Filipinos who,
after having assumed foreign
citizenship, have retained or reacquired their Philippine citizenship because of a sincere desire to
help their Motherland.
To cite a current example, the
protests against Chinas bullying
incursions into the South China
Sea gained momentum because
of the aggressive and relentless
efforts of US Pinoys for Good
Governance, led by FilAms Loida
Nicolas-Lewis, Rodel Rodis, Ted
Laguatan and Charito Benipayo.
These are the same committed individuals, along with the
late Alex Esclamado, who lobbied
long and hard for the passage of
the Overseas Absentee Voting Act
and RA 9226. They did it out of
love for the land of their birth.
I dont think it is fair for
anyone to question their sincerity. Neither should they challenge

Circulation tel. (+632) 535-9940

circulation@bworldonline.com

Poes motive for renouncing her

US citizenship. What social or
economic advantage could she
have expected from assuming
a low-paying mid-level government job?
The truth is that, when President Benigno S. C. Aquino III
won the presidency, several
leading FilAms expressed interest in serving in his government. I did, too.
It was not for lack of love for
America, a country to which
we owe much of what we have
become and where we have
raised our children and grandchildren. It was because of a
fervent desire to be of service to
our Motherland.
If I have been critical of Sen.
Grace Poe, it has only been
because of her dogged determination to push ahead with
her presidential aspirations,
in spite of being clearly handicapped and restricted under
our Constitution.

tive principle of primary jurisdiction, the BIR is presumed to

have acquired expertise and special knowledge on tax matters.
This authority has also been
recognized in BIR rulings DA503-07), issuances (Revenue
Memorandum Order No. 76-98)
and even in a case decided by
the Court of Tax Appeal (Chemfields, Inc. v. CIR).
It thus appears that the proper
action to lift the annotation of tax
lien is to initially request the BIR
to order the same, citing grounds
for the cancellation of the tax lien.
If not acted (within 180 days
as this action is akin to a protest
on assessment) or when denied,
the taxpayer may appeal the case
to the CTA before finally raising
the case to the Supreme Court.
Even if not expressly provided in the Tax Code, the action for
the lifting of the Notice of Tax
Lien should be submitted first to
the BIR, the agency tasked with
the administration of taxes. Tax
laws, which are strictly interpreted against the government,
should be construed in a way as
to provide taxpayers with remedies for necessary and logical
consequences of its enforcement. Surely, it is the intention
of the legislature that taxpayers
are not left without recourse
for the actions of the BIR in the
enforcement of the Tax Code. n
The views and opinions expressed in this article are those
of the author. This article is for
general informational and educational purposes only and not
offered as and does not constitute
legal advice or legal opinion.

MHEALLER T. YCONG is an Associate of the

Angara Abello Concepcion
Regala & Cruz Law Offices
(ACCRALAW),
Cebu Branch.
(6332) 231-4223
mtycong
@accralaw.com

She could have chosen the

elegant option which was to, at
least, wait for one handicap
residency to be mitigated by
time. And, in the spirit of the
half-a-loaf principle, as a senator, she could also have chosen to
push for a more humane definition of natural born citizen to
include foundlings.
Hillary Clinton waited out two
terms of President Barack Obama
to once more aspire for the presidency of the United States. Grace
Poe has time on her side. Maybe
she should stop listening to her
Rasputin, whoever that scheming
adviser might be. n

GREG B. MACABENTA is an advertising

and communications man
shuttling between
San Francisco and Manila
and providing unique
insights on issues from
both perspectives.
gregmacabenta
@hotmail.com

MIGUEL G. BELMONTE President and Chief Executive Officer l LUCIEN C. DY TIOCO Senior Vice-President for Sales and Marketing
HAZEL D. GASTON Advertising Director l JEANETTE F. DOMINGUEZ Special Features Advertising Manager
RAFAEL M. DE LARRAZABAL, JR. Circulation Director l DYA JILL E. ARENAS Marketing Communications Supervisor

8/S1

Motoring

Setting the
bar high for
its SUV ilk

DRIVES

AS A PLATFORM from which

an SUV springs, the Ford Ranger
pickup is tough to match. And so
the Ford Everest, an SUV spun off
its pickup sibling, promises the
same bulk, tech and competence
on which the Ranger has propped
its market credentials. But to automatically regard the Everest
as a mere Ranger that could sit
seven would not be accurate
this SUV packs a lot more than
just a covered trunk and thirdrow seats.
While based on the architecture of the Ranger, and propelled by the
same drive train, the Everest is
a model all its own. It shares no
exterior panel with the pickup,
and gets a different suspension
setup that affords road manners
distinct from the Ranger. Also,
a unique set of cabin features, if
not furniture, distinguishes SUV
from truck.
The Everests coil-sprung rear
end, tuned for comfort rather than
hauling hefty cargo, allows for a
cushier ride. On pavement, even
Metro Manilas (which is to say
bad pavement), the Everest remains composed, not bucking all
that much, with the suspension
quelling chassis quake and judder
so these do not reach the cabin.
This is impressive for a vehicle
whose body is bolted to a frame,
and especially so considering the
subject of this review the topspec Everest Titanium 3.2L 4x4
rolls on huge 20-inch wheels.

EDITOR BRIAN M. AFUANG

WEDNESDAY, JANUARY 13, 2016

Ford
Everest
Titanium
3.2L 4x4
BLUFFERS BOX
Ford Everest Titanium 3.2L 4x4
Price: P1.899 million
Engine: 3.2-liter, inline-five, turbocharged, diesel; 197hp @ 3,000rpm,
470Nm @ 1,750 - 2,500rpm
Transmission: Six-speed automatic
Drivetrain: All-wheel drive
Wheels/Tires: 20 inches, 265/50
Key features: Eight-inch multimedia
touch screen with SYNC2 voice command, Wi-Fi, USB and aux-in connectivity; panoramic glass roof; power tailgate;
power-folding third-row seats; 230-volt
power socket; dual-zone air-conditioning; automatic park assist; Terrain
Management System; Curve Control; Roll
Stability Control; Hill Descent; electronically locking rear differential

Other pieces pitch in to refine

the Everests ride quality. The
models live rear axle is made to
behave better when the road gets
all bendy by means of a Watts
linkage, which reins in lateral
movement from any of the axles
end by pulling on either if it travels excessively. This helps the
Everest stay flat even when its
taking corners briskly. Less leaning also means a comfier ride.
Notable, too, is the Everests
hushed cabin. Besides the usual
insulation materials, credit here
goes to Fords active noise cancellation feature, a trick system
in which microphones react to
engine and road noise by emitting
opposing sound waves. Frankly,
its nearly impossible to detect the

systems presence, but when the

cars audio can be heard crisply
(even at low volume levels) above
the clatter of rush-hour traffic,
its hard to dismiss the feature as
mere brochure-speak.
Readily more apparent is the
space inside the Everest on
whichever perch one ends up there
is no lack of room. And, this, even if
the seats are fat and heavily bolstered. Aft of the third-row seats is
a decent-sized cargo bay, too. Press
a button and electric motors stow
away these rearmost seats to create space for more stuff. Fold the
middle-row seats flat and room
becomes truly expansive.
As a top variant the Titanium
is crammed with all the premium
features; multimedia with eight-

inch touch screen and Fords

SYNC2 voice command, panoramic glass roof, power tailgate,
dual-zone climate control, 230volt power socket, full-leather
furniture, steering wheel controls
the works. And then there are
the sundry stability systems like
Curve Control, plus park assist
(which automatically slots the
Everest into a parking space), and
the numerous other active and
passive safety systems.
This variant is not short on offroad kit either. Its all-wheel drive
gear is complemented by a suite
of features that make driving the
vehicle over muck or truly nasty
and undulating terrain mindlessly easy amply proven during
the Everests launch gig held in

HIPSTER HYBRID

FASHION STATEMENT

A new polygon grille, combined with projector HID headlamps, mimics the styling
of the latest sporty models of Honda. LED daytime running lamps further glitz
up the front end while a blade-like diffuser sharpens up the rear. New 17-inch
alloys round out the exterior makeover. Three new paintjobs with black
accents are now available, too. In the cabin are bucket seats
rendered in black and orange, with additional leather trim.

FOR TECHIES

P1.440 million for the variant with a

manual transmission, P1.530 million
for the one with CVT. Add P30,000
for the new paintjob options.
BUSINESSWORLD GRAPHICS: BRIAN M. AFUANG

SPORTS ECO CRED

Powering the CR-Z is still a 1.5 liter

i-VTEC engine thats matched to Hondas
Integrated Motor Assist hybrid system. The mix
allows the car power outputs of 134hp when it comes
with a six-speed manual gearbox and 133hp when its fitted
with a continuously variable transmission. In whichever spec a
multi-mode drive system Sport, Econ, Normal and Plus Sport
is available. The latest cars rear track has stretched by 10 millimeters,
promising stability gains. Active noise canceling further refines the new CR-Z.

Audi Q7: Well worth the wait

By Kap Maceda Aguila

Comfort, Auto, Dynamic, Individual (customizable), and Lift/

Offroad for various applications
and preferences. These adjust the
settings of engine and transmission responses, steering effort,
and suspension firmness.
In the Q7, Audi achieves the
dichotomy of growing on the inside and shrinking on the outside.
Thirty-seven millimeters shorter
and 15 millimeters narrower than
its predecessor, the new iteration delivers roomier interiors.
The space between the first and
second rows has grown by 21 millimeters; headroom improves by
a generous 41 millimeters in the
front seats, and 23 millimeters in
the second-row seats.
Driving the
3.0 - l i t e r, s i x cylinder diesel
for now, the

AUDI Q7
great addition
to any home.

First of two parts

he last quarter of the year just past saw major changes
on EDSA. With former MMDA Chairman Francis N.
Tolentino on to pursuing votes instead, we find his
traffic deputy, Emerson S. Carlos, taking charge. In preparation for the traffic standstill of the APEC Summit lockdown,
the Palace also appointed a traffic czar in the person of Sec.
Jose Rene D. Almendras. In time, the green footbridges were
to be repainted a uniform beige and with the PNP Highway
Patrol Group (HPG) taking charge of traffic enforcement at
key locations on EDSA and alternate Mabuhay lanes, traffic lights are again reappearing at junctions that used to be
integral parts of the U-turn system.
The HPG takeover of the Balintawak market put an end
to vendors lording it over lanes 1 and 2 of EDSA. That area
was really an enforcement problem rather than a management problem. Historically, when Quezon City was run by
Mayor Feliciano R. Belmonte, Jr. and the MMDA was run
by Bayani F. Fernando, MMDA traffic enforcers were able to
discipline this area. But when the new government took over
and with former Mayor Belmonte moving on to Congress,
the Herbert Bistek C.
Bautista administration of
Quezon City was never able
TITO F. HERMOSO
to backstop MMDA efforts
to enforce discipline on this
crucial stretch of EDSA.
Fatal accidents caused
With the Dario Bridge
by beating the red light
under construction, Rooswas never possible in the evelt EDSA/Congressional
U-turn system.
EDSA reverted to its pre-Uturn traffic light guidance
with good countdown timers of 160 seconds for an EDSA
green light. The downside of this that PUJs have also
reverted to their old habits of blocking the yellow box as
passengers insist on embarking and disembarking close to
the corner, with jeepneys stopped four abreast. As for the
stretch from Bansalangin to EDSA Quezon Avenue, the
closure of many U-turn slots gave EDSA better free flow,
but then chaos now reigns on the North Avenue and West
Avenue end as PUJs are not able to complete the authorized
journey because they cannot cross EDSA. Traffic management is the problem in this case.
The return of traffic lights under the EDSA Quezon Avenue overpass has organized the chaotic merging of traffic
in that area, but it remains to be seen if these traffic lights,
like all traffic lights in the Metro, are obeyed during the wee
hours. Fatal accidents caused by beating the red light was
never possible in the U-turn system. As a traffic congestion
generator, we never fail to point out the return of traffic
lights on C-5 may have improved traffic in Libis, but it has
worsened traffic on Katipunan Avenue to the point that even
Aurora Boulevard is terminally affected all the time.
Having the buses return to home base via P. Tuazon and
C-5 after turning around in Cubao during the morning peak
hours may have eased traffic by a teeny weeny bit.

NOT SO FAST

lone engine variant available

locally reveals how Audi interprets its corporate mantra
Vorsprung Durch Technik (Innovation Through Technology).
Aside from the interior tech, the
Q7 drive benefits from breakthroughs such as in the use of materials. Audi shaves an incredible
700 pounds from the vehicle by
capitalizing on its experience in
manufacturing aluminum chasses and suspension components.
This means drivers can fully enjoy the 272hp and 600Nm, which
is more than enough grunt to power the Q7 like a smaller vehicle that
stays poised through twists and
turns. Audi reports a standstill-to100-kph rate of 6.3 seconds. Thats
pretty decent for its size. All told,
the Q7 delivers for both drivers
and passengers fortunate enough
to be ensconced within.

KAP MACEDA AGUILA

FOR GOOD OR BAD, as its brethren in the Audi stable evolved

significantly through the years,
the Q7 staunchly stayed put and
essentially the same. While the
powers-that-be at the Ingolstadtbased car maker trotted out
various Q7 iterations, these were
confined to face lifts, alternative
power plants and transmissions,
and other changes.
This makes the all-new Audi
Q7 one of the most anticipated vehicles. First unveiled at the North
American International Auto Show
in Detroit, the second-generation
Q7 finally hit the Audi Philippines
showrooms late last year. Word has
it that at least one unit was sold on
the night of the official launch.
Indeed, before one gets behind
the wheel, it become immediately
apparent that Audi has made
decade-long gestational wait
worth it. Smart, taut lines and an
authoritative single-frame grille
call the attention. The sharper
profile (with a lower 0.32 drag coefficient) ends in an almost fastback rear. This imbues a sportier
feel certainly welcome even if
Audi dubs the vehicle a premium

family SUV. Xenon/HID, LED or

Matrix LED head lights surround
the grill, depending on options.
Body strips are standard to protect the main exterior panels and
are covered in matte aluminum.
Once you get into the drivers
seat, Audis proprietary Virtual
Cockpit instantly catches the eye.
A high-definition, 12.3-inch TFT
displays a wealth of engine and
vehicle information, multimedia
settings, and, significantly, route
guidance/map courtesy of a GPS/
satellite navigation system. Owners are actually given their druthers as a traditional centrally
located screen pops up from atop
the dashboard. Various inputs
are available whether through
voice, Audis MMI all-in-touch
with handwriting-recognition
technology, and buttons and dials.
To be clear, even if it takes some
getting used to, the tech candies
on the Q7 have been kept to acceptable levels. Audi Philippines
says in a release that designers
and engineers trimmed down the
number of buttons on the Q7 for
a more user-friendly, cleaner layout. Audis Drive Select function
exemplifies the ethos of simplicity. Drivers can choose from the
following driving modes: Allroad,

Ford in the Philippines

led the way for pickupbased SUVs through the
original Everest, released in the
early 2000s. With the latest Everest Ford is reclaiming its pioneering ways, and is setting the bar
high for the latest generation of
such models. Brian M. Afuang

EDSA traffic:
management vs
enforcement

HONDAS hybrid-powered sporty coupe has received a makeover. The CR-Z 1.5 IMA Hybrid, now appended
with the Navi tag, wears fresh exterior pieces that speak the car makers language clearer,
and gets cabin features that better appeal to the models target consumer.

HOW MUCH?

For all the gear that has

been crammed into the
Everest Titanium, the
absence of a push-button start
feature sticks out (imagine the
horror of having to actually insert
a key into the ignition slot), especially when considering that some
econoboxes have this. Maybe Ford
is reserving the feature in time for
the Everests refresh a few years
from now.
Climbing onto the vehicles
rearmost seats can be a chore too
as the middle-row ones do not
tumble out of the way. They slide
forward though, and their seatbacks fold down.

OPINION

Honda brings to showrooms upgraded CR-Z

The cars already futuristic cockpit adds in a new

seven-inch touch screen display for the audio
system, which now comes with a navigation function
(identifying the cars Navi tag). The center console
sees a new layout, incorporating an electric parking
brake to replace the traditional lever handbrake.

Thailand in July 2015. Besides

the essential locking rear differential and hill descent (electronic
as well), the Everest has Terrain
Management System basically
identical to that found on Land
Rovers. The feature sets the car
up for snow, gravel, grass, sand or
rock via a twist of a knob. Select a
particular surface and computers
and electronics work out the rest.
No source for gripes either is
the 3.2-liter, inline-five, turboboosted diesel mill that resides
under the Everests blocky snout.
It puts out prodigious grunt
470Nm so the car hardly feels
stressed, and for a diesel burner
it isnt clattery. The six-speed
automatic gearbox that bolts to
it is equally unobtrusive, too, its
shifting seamless.

Read the full article by

scanning the QR code
or typing the link
<http://goo.gl/QKk0t6>

tfhermoso
@gmail.com

World

The
EDITOR KATRINA PAOLA B. ALVAREZ

WEDNESDAY, JANUARY 13, 2016

S1/9

Security Council meets

Starving, besieged Syria town on agenda

AFP

Empty chairs at empty tables

A woman sits in a classroom that has become a memorial for victims of South Koreas Sewol ferry disaster, at Danwon
high school in Ansan, south of Seoul, on Jan. 12. On Tuesday, the survivors, carrying 250 roses representing their
friends who died, graduated from their high school at an emotional, low-key ceremony. The ferry was carrying 476
people, and 304 died, including the 250 students, when it sank in April 2014.

North Korea said seeking Chinas help

on peace treaty with US or more tests
BEIJING North Korea is seeking a peace treaty with the United
States, China, and South Korea to
formally end the Korean War and
will not stop its nuclear tests until
it gets one, a person who relayed
that message from North Korea
to China told Reuters.
North Korea announced last
Wednesday it carried out its
fourth nuclear test since 2006,
drawing threats of more sanctions, although United States and
weapons experts doubted Pyongyangs claim that the device was a
hydrogen bomb.
The test has again raised questions among world powers about
what can be done to stop the Norths
nuclear weapons program.
The source, who has contacts
in the North Korean capital of
Pyongyang and provided exclusive details about the preparations for the first nuclear test in
2006, said the tests would go on
until the Norths demand for a
treaty was met.
North Korea will do it to the
end until China and the United
States want to sign a peace treaty, said the source, who declined
to be identified.

The 1950-1953 Korean War

ended in an armistice, not a
peace treaty, signed by the United
States, representing UN forces;
the North Korean military; and
the Chinese army.
Now, North Korea wants those
three sides and South Korea to
sign a treaty.
This explosion is mainly for
the United States to see. The
main objective is to persuade the
United States to enter into fourcountry negotiations to end the
war so that there can be everlasting peace on the Korean peninsula, the source said.
North Korea has repeatedly
said it wants a peace treaty to formally end the war, which it says
will give it the security it needs,
given what it sees as a hostile
United States intent on regime
change in Pyongyang.
The United States and China
have both dangled the prospect of
better ties, including the lifting of
sanctions and eventually a likely
peace treaty, if North Korea gives
up its nuclear weapons.
But, North Korea believes the
United States will only negotiate
if Pyongyang can demonstrate

its strength through its weapons.

With its demand for a treaty ignored, North Korea has continued to develop its nuclear weapons, and a stalemate has ensued.

STRATEGIC MISTAKE

The source said he had relayed

the message from North Korea to
Chinas top leadership immediately
after its latest test, urging China to
support a push for a treaty.
China should not follow the
United States, the source said,
referring to the US demand that
North Korea give up its nuclear
program before any negotiations.
Not mentioning a peace treaty is a strategic mistake.
China is the reclusive Norths
main economic and diplomatic
backer, and the two fought sideby-side during the Korean War.
Despite their old friendship, China opposes the Norths nuclear program and has supported sweeping
United Nations sanctions on North
Korea for its weapons development.
But, China has been reluctant
to take tougher action, such as
completely shutting their shared
border, fearful North Korea could
collapse in chaos. Reuters

THE United Nations (UN) Security Council was discussing the

besieged towns of Syria on Monday after reports emerged that
tens of thousands of civilians
have been trapped for months
without supplies and are starving
to death.
New Zealand and Spain called
for today s Security Council
meeting on the situation in the
Syrian town of Madaya following reports of people dying from
starvation, New Zealands UN
ambassador, Gerard van Bohemen, told reporters.
The tactic of siege and starvation is one of the most appalling
characteristics of the Syrian conflict, he said.
Trucks carrying food and
medical supplies reached Madaya
near the Lebanese border and
began to distribute aid as part of
an agreement between warring
sides, the UN and the Red Cross
said on Monday.
A UN spokesman said aid
trucks were also en route to the
Shiite villages of al Foua and
Kefraya in the northwestern
province of Idlib, two other areas

where there is a desperate need

for humanitarian assistance.
US Ambassador Samantha
Power also had strong words
about Madaya, slamming the
grotesque starve-or-surrender
tactics the Syrian regime is using
right now against its own people.
Look at the haunting pictures
of civilians, including children,
even babies, in Madaya, she said.
These are just the pictures we
see. There are hundreds of thousands of people being deliberately
besieged, deliberately starved,
right now. And these images, they
remind us of World War II.
Ms. Power was speaking at a
special session of the 193-nation
UN General Assembly on the 70th
anniversary of the assemblys first
meeting in London.
British Ambassador Matthew
Rycroft said starving civilians
is an inhuman tactic used by the
[President Bashar] al-Assad regime and their allies.
All sieges must be lifted to save
civilian lives and to bring Syria closer to peace, he said in a statement,
adding that there were 850 infants
in urgent need of milk in Madaya.

Syrian Ambassador Bashar

Jaafari told reporters his government was committed to cooperate fully on aid delivery but
said much of what was said about
Madaya was based on false information. He labeled pictures of
starving people as fabrications.
There is no shortage of humanitarian assistance in Madaya, he said, adding that some
aid has been looted by armed
terrorist groups.
The Syrian civil war has been
raging for nearly five years and
has claimed more than a quarter
million lives.
A UN Security Council resolution adopted on Dec. 18 set out
a road map for peace talks and
called on the parties to allow
aid workers unhindered access
throughout Syria, particularly in
besieged and hard-to-reach areas.
The blockade of Madaya has
become a focal issue for Syrian
opposition leaders, who told a UN
envoy last week they would not
take part in talks with the government, slated for later this month,
until it and other sieges are lifted.
Reuters

Japan warns Beijing on incursions

near disputed East China Sea islands
TOKYO Japan said on Tuesday that
it has told China that any foreign naval
vessel that enters Japanese territorial
waters for reasons other than innocent
passage will be told to leave by a Japanese naval patrol, signalling a potential
escalation in a long-running maritime
dispute.
Chief Cabinet Secretary Yoshihide
Suga told a news conference Japan had
informed China of its decision in November, after Chinese navy ships sailed near
disputed isles in the East China Sea
known as the Senkaku in Japan and the
Diaoyu in China.
Japans government, Mr. Suga said,
had approved this course of action last
May.
Based on a Cabinet resolution last
May, if a foreign naval vessel transits
our waters for [purposes] other than
innocent passage, we will order a sea

patrol and take the step of having the

Self-Defense Force unit order withdrawal, Mr. Suga told a news conference.
Chinese Foreign Ministry spokesman
Hong Lei, asked about the remarks,
said China was determined to protect
its territory, repeating its standard line
that the islands had been Chinese since
ancient times.
At the same time we do not want
to see a rise in tensions in the East
China Sea and are willing to appropriately manage, control and resolve the
issue via dialogue and consultations,
Mr. Hong told a daily news briefing in
Beijing.
Mr. Sugas comments followed a Yomiuri newspaper report that said ships
belonging to the Maritime Self-Defense
Force, as Japans navy is known, would
be sent to urge Chinese naval ships to
leave if they came within about 22 kilo-

meters of the islands for reasons other

than innocent passage.
The tiny islands are under Japans
control, but the territorial dispute over
them has been a major sticking point
in the two countries often contentious
relations in recent years.
Late last year, a Chinese coast
guard vessel with what appeared
to be gun turrets entered territorial
waters claimed by Japan near the
disputed islands, Japans coast guard
said, adding that it was the first such
incursion by an armed Chinese vessel
in the disputed area.
The official China Daily reported
on Tuesday Chinas coast guard was
preparing to launch a new, large, armed
vessel, which could be assigned to cover
the South China Sea, where China has
territorial disputes with several Southeast Asian neighbors. Reuters

Suu Kyi, insurgents gather for talks; others awaited

NAYPYITAW More of Myanmars ethnic minority rebel groups
should be brought into peace
talks and the effort to end conflict
should not divide groups that are
involved in negotiations and those
that have shunned the process,
Aung San Suu Kyi said on Tuesday.
Hundreds of representatives
of guerrilla groups, the military
and members of parliament, gathered in the capital, Naypyitaw, for
the second stage of talks aimed
at ending insurgencies that have
plagued the country for decades.
The outgoing semi-civilian
government of President Thein
Sein signed what it called a nationwide cease-fire agreement
in October, but seven of 15 rebel
groups invited to participate declined to sign, including some of
the most powerful.
Other groups were not invited
to take part or showed little interest in the process.

Since the signing, fighting has

erupted between the military and
groups that did not sign the ceasefire and groups that did not take
part in the negotiations, as well as
between groups that signed and
others that did not, further complicating the already daunting task of
reaching sustainable peace.
We need to work for all the
ethnic armed groups to be participate in the NCA, Ms. Suu Kyi
said referring to the nationwide
cease-fire agreement.
It is important not to have
conflicts between the ethnic
armed groups which have signed
the NCA and the groups which
are still not involved in the agreement.
Ethnic minority guerrillas
have been fighting the central
government for greater autonomy and rights since shortly after
the country gained independence
from Britain in 1948.

The military, which still wields

huge influence under a constitution it drafted in 2008, has long
portrayed itself as the sole power
holding the ethnically diverse
country together and it is widely
seen as loath to give ground on
minority demands for autonomy
under a federal system.

HIGH EXPECTATIONS

Ms. Suu Kyi, whose National

League for Democracy (NLD)
swept a November election, said
in an Independence Day speech
last week that the peace process
would be the first priority of her
new government, which is due to
take power in March.
But she and the NLD have said
little publicly about how they intend to push the process forward.
Groups that chose not to sign
the cease-fire have been invited
to attend the latest talks, which
could lay the groundwork for fur-

ther negotiations once the NLD

takes power.
Several of the insurgent
groups are hoping that Ms. Suu
Kyis standing and mandate will
help her in bridging differences
with the military.
We have high expectations for
Aung San Suu Kyi and her government to negotiate with the army
chief without the militarys involvement, it will be impossible to
end the fighting across the country,
said Saw Thamein Tun, a leader of
the Karen National Union.
The gathering in Naypyitaw
was also attended by President
Thein Sein and the powerful army
chief Min Aung Hlaing. The appearance of the two alongside
Suu Kyi reflected what has been a
smooth transfer of power.
Myanmars generals ran the
country for 49 years, until 2011,
when a hybrid civilian-military government was installed. Reuters

Clinton calls for an end to immigration raids in US

DES MOINES Democratic
presidential candidate Hillary
Clinton called on Monday for
an end to raids by US officials to
deport undocumented Central
American families, saying they
were divisive and sowing fear in
immigrant communities.
Breaking with President Barack
Obama, Ms. Clinton condemned
the raids carried out by the Department of Homeland Security and
released a plan that she said would
help protect Central American
families seeking asylum.
I do not think the raids are an
appropriate tool to enforce the
immigration laws. In fact, I think
they are divisive; they are sowing discord and fear, Ms. Clinton

said at the Iowa Brown and Black

forum on minority issues.
Rivals for the Democratic nomination Senator Bernie Sanders of
Vermont and former Maryland
Governor Martin OMalley have
both spoken out against the raids,
and participated in the forum.
Ms. Clinton had been slower to
distance herself from the policy,
though it has been condemned
by many immigration groups and
Democrats in Congress.
As she spoke at the forum, Ms.
Clintons campaign released a
statement and paper calling for a
stop to the raids.
It also advocated government-funded counsels for all
unaccompanied minors in im-

migration court and a long-term,

comprehensive fix to asylum and
refugee programs that would include more officers, translators
and immigration judges, as well
as investment in development in
Central America.
If the United States takes the
lead in organizing a regional coalition to respond to this crisis,
I believe we can make a serious
difference, Ms. Clinton said in a
statement.
Polls show Ms. Clinton, the
front-runner for the Democratic
nomination in the November
election, is clinging to a narrow
lead over Mr. Sanders in Iowa,
which kicks off the nominating
race on Feb. 1. The polls show she

trails him in the next state to vote,

New Hampshire.
The recent raids pursued families with undocumented members, in what some immigration
groups viewed as a response by
officials to a deter Central Americans flooding across the border in
the southwest.
Mr. Sanders said the United
States should be careful in deporting the undocumented back
to potentially unstable situations
in Central America.
We have a moral responsibility. What refugee status is about
is to make sure that people are not
forced to return to communities
where their lives may be in danger, he told the forum. Reuters

AFP

AUSTRIAN SERVICEMEN stop a migrant who tries to go over the fence, as other
migrants and refugees wait to cross the Slovenian-Austrian border from the
Slovenian city of Sentilj on Oct. 30, 2015.

Austria to be tougher
on economic migrants
VIENNA Austria will take
tougher action at its borders to
turn away economic migrants
in order to reduce overall immigration, Chancellor Werner
Faymann said, striking a harsher
tone on asylum seekers.
Hundreds of thousands of people fleeing conflict and poverty in
the Middle East, Afghanistan and
elsewhere have entered Austria,
many en route to Germany, in the
past year.
A r o u n d 9 0,0 0 0 o f t h o s e
sought asylum in Austria a
country of 8.5 million people
in 2015, around three times
more than the previous year,
ORF radio said, citing Interior
Ministry statistics.
One must transit to a Plan B.
That means to intensify policies
together with Germany to send
back economic migrants and decrease overall numbers, Social

Democrat Mr. Faymann said in an

interview with Austrian newspaper Krone published on Tuesday.
He said Austria needed to explore the legal framework for differentiating between those fleeing war and those who migrate for
economic reasons.
One thing is certain in any
case: shortly, we will be more active at our borders than today.
The Germans will also do more,
Mr. Faymann said.
Once more lenient on accepting migrants, Mr. Faymann has
come under pressure from his
conservative coalition partners
and the far-right Freedom Party,
which in recent opinion polls won
the support of around a third of
those surveyed.
Last month, Mr. Faymann said
Austria should step up deportations of people who do not qualify
for asylum. Reuters

10/S1

Nation

The

EDITOR RICKY S. TORRE

WEDNESDAY, JANUARY 13, 2016

Supreme Court rules EDCA not unconstitutional

Reporter

THE SUPREME COURT (SC) upheld on Tuesday the constitutionality of the Enhanced Defense
Cooperation Agreement (EDCA),
the much-debated bilateral pact
on the presence of the American
military on Philippine soil.
Voting 10-4, the SC en banc
ruled the defense pact was not
unconstitutional and dismissed
two petitions contesting the April
28, 2014 agreement, SC Public Information Office Chief Theodore
O. Te said in a press briefing.
The high court held that EDCA
is not a treaty requiring the concurrence of the Senate, according
to a brief of the decision.
Instead of being a treaty, the
SC said EDCA was an executive
agreement that merely aims
to implement already existing
treaties ratified by the Senate:
the 1951 Mutual Defense Treaty
(MDT) and the 1999 Visiting
Forces Agreement (VFA).
As it is, EDCA is not constitutionally infirm. As an executive
agreement, it remains consistent
with existing laws and treaties
that it purports to implement,
stated the dispositive portion
of the decision penned by Chief
Justice Maria Lourdes P. A.
Sereno.
Associate Justices Teresita J.
Leonardo-de Castro, Arturo D.
Brion, Estela M. Perlas-Bernabe,
and Marvic M.V.F. Leonen dissented, while Associate Justice
Francis H. Jardeleza inhibited.

A full copy of the decision, as

well as one concurring opinion and
three dissenting opinions, is yet to
be released as of this reporting.

PHILIPPINE STAR_EDD GUMBAN/

By Vince Alvic A. F. Nonato

NOT THE INSTRUMENT

In effect, Mr. Te said the SC disagreed with Senate Resolution

No. 105. Adopted on Nov. 10, 2015,
the Senate resolution said EDCA
must be submitted to the chamber as a treaty for concurrence of
two-thirds of its members.
But the SC said Article XVIII,
Section 25 of the 1987 Constitution allows President Benigno
S. C. Aquino III to enter into an
executive agreement and not necessarily a treaty, if the pact merely
aims to implement existing laws
and treaties.
In ruling that EDCA was not a
treaty, the high court noted that
it was not the instrument that
allowed US troops or facilities to
enter the country, as the VFA already did so back in 1999.
The EDCA provides for arrangements to implement existing treaties allowing entry of foreign military troops or facilities
under the VFA and the MDT, and
thus may be in the form of an executive agreement solely within
the powers of the President and
not requiring Senate concurrence..., the court said.
The high court pointed out
that Mr. Aquino can exercise his
prerogative to choose which form
international deals can take, and
that no court can order him not
to choose an executive agreement
over a treaty.
Authorities from both the
Philippines and the United States

EDCA will be Aquinos legacy

for the next administration that is
bound to implement it, Mr. Banlaoi said. It can boost US leverage
in balancing China, particularly
in the context of the growing USChina power struggle in the South
China Sea.
The new pact, however, is only
intended to be in place for 10 years
from 2014, an AFP report noted.

EDCA CRITICS TO APPEAL

MILITANT GROUPS led by Bayan Muna rally before the Supreme Court during oral
arguments on the Enhanced Defense Cooperation Agreement (EDCA).
welcomed the ruling. The Department of Foreign Affairs said in a
statement that with the SC ruling,
the two governments can now
proceed in finalizing the arrangements for its full implementation.
The US Embassy in Manila in
its statement said the decision will
further strengthen the US-Philippine bilateral relationship, a
point affirmed by the Malacaang.
In his statement, Communications Secretary Herminio B. Coloma, Jr. recalled Mr. Aquinos words
that the EDCA will introduce the
Armed Forces of the Philippines
to the most modern equipment...
and have a generational leap in our
abilities. He added that the EDCA
will enhance the countrys disaster
response capabilities.
AFP Chief Gen. Hernando Delfin Carmelo A. Iriberri in a text
message said this decision bodes
well for deepening our defense cooperation with a key ally. He said

the military look[s] forward to

addressing short-term gaps and
long-term modernization of the
countrys forces, and help maintain maritime security and maritime domain awareness.
For his part, Defense department spokesman Peter Paul
Ruben G. Galvez said: With this
development that builds upon
our mutual defense treaty, we
look forward to advancing our
defense modernization and
strengthening Maritime Security
and Humanitarian Assistance
and Disaster Relief capabilities.
Likewise, this puts us in a better
position to improve our interoperability with the US and increase
our Armed Forces capacities.
In an interview with Reuters,
security expert Rommel C. Banlaoi said the EDCA will strengthen
the alliance between Manila and
Washington beyond Mr. Aquinos
administration.

The Bagong Alyansang Makabayan (Bayan), the left-wing umbrella group that led one of the two
petitions, said the issuance of the
ruling was another sad day for
Philippine sovereignty as the SC
upheld the validity of the EDCA.
Secretary-General Renato M.
Reyes, Jr. said the petitioners
will immediately consult with
our lawyers to launch an appeal
through a motion for reconsideration, noting the SCs vote was
not unanimous.
Another petitioner, the Kilusang Mayo Uno (KMU), said
in a statement that EDCA only
further violates Philippine sovereignty and territorial integrity,
further endangers Filipino lives
and properties, and further imperils the environment.
The KMU statement also recalled the bloody Mamasapano
incident last year, which it said
involved US military presence.
Mr. Reyes maintained the
EDCA is not the solution to the
problem of Chinas incursions,
not when the EDCA also violates
PH sovereignty.
Saying the US only wanted to
use the country as a launching

pad for military intervention and

power projection in the region, he
said: Neither will the EDCA lead
to AFP modernization, much the
same way that the 1947 US Bases
Agreement did not develop our
armed forces.
Mr. Reyes said the SCs decision is a de facto reversal of the
Senates historic 1991 vote rejecting a treaty to extend the life of US
bases in the country.
Notably, two of the senators
in that vote, Rene A. V. Saguisag
and Wigberto E. Taada, led in
filing the other petition, the first
to contest EDCA.
Lawyer Herminio Harry L.
Roque, Jr., who joined the senators in their petition, said in a
statement that the SC ruling created a constitutional crisis between the Senate and the Court.
Aside from disclosing plans
to appeal, Mr. Roque urged the
Senate to exercise its political
powers through the power of
impeachment as the high court
breach[ed]... [its] duty to uphold
the supremacy of the Constitution.
EDCA was signed by Defense
Secretary Voltaire T. Gazmin
and US Ambassador Philip S.
Goldberg on April 28, 2014, a few
hours before US President Barack
H. Obama arrived for his state
visit. The agreement would allow the US to construct facilities
and preposition various defense
and disaster response equipment
in designated areas within a few
AFP bases to be agreed upon by
both countries, according to gov.
ph. with Alden M. Monzon,
AFP and Reuters

Comelec set to ratify Guanzon comment

By Alden M. Monzon and
Vince Alvic Alexis F. Nonato
Reporters

THE COMMISSION on Elections

(Comelec) is set to ratify the comment filed by one of its commissioners, Ma. Rowena Amelia V.
Guanzon, to the Supreme Court
(SC) on the disqualification case
of Senator Grace Poe.
We will be coming out with
a resolution, if not late today, by
tomorrow morning, addressing
certain concerns and issues, first
and foremost of which is that we
have thus far complied with the filing of comment in the disqualification cases now pending before the
Supreme Court, Commissioner
Arthur D. Lim said yesterday. We
will be ratifying and confirming the
comment that has been filed concerning the cases [filed by former
senator Francisco S.] Tatad, et al.
On Jan. 7, Ms. Guanzon filed
a comment without the concurrence of the other six commissioners. This has led to an open
disagreement with Comelec
Chairman Andres D. Bautista,
who had questioned her action.
Mr. Lim said the Comelec intends to put this matter behind and
move forward with the tasks ahead
on this years general elections.
[W]e would like to give a
firm assurance to our people that
the Commission on Elections is
firmly committed to the holding
of clean, honest, peaceful and

orderly elections in 2016 and we

shall not be sidetracked by any
other issues, he said.

TROS AFFIRMED

Meanwhile, the Supreme Court

en banc has affirmed Chief Justice Maria Lourdes P. A. Serenos
issuance of two temporary restraining orders (TRO) against
the cancellation of Ms. Poes presidential candidacy.
Voting 12-3, the SC on Tuesday confirmed the two TROs
Ms. Sereno issued on Dec. 28 at
the request of Ms. Poe during the
courts recess, SC Public Information Office Chief Theodore O. Te
said in a press briefing.
The dissenting votes were cast
by Associate Justices Antonio T.
Carpio, Teresita J. Leonardo-de
Castro and Arturo D. Brion. All
three were members of the Senate Electoral Tribunal (SET) who
comprised the minority that voted for her ouster from the Senate
in a separate case. The SET voted
5-4 to rule in the senators favor.
The three justices took part
and voted on the issue of the
TROs, amid a pending plea by Ms.
Poes camp for them to inhibit
from her separate electoral cases.
Ms. Poes spokesperson, Valenzuela City Mayor Rexlon T.
Gatchalian, declined to comment,
saying we do not wish to preempt
their decisions as we have not yet
secured any form of decision pertaining to our motion to inhibit.
At the same time, he said in a text
message that they were thankful

for the TROs for having prevented

an injustice from taking place.
The Chief Justice has the
power to issue urgent orders during the courts recess, subject to
the courts confirmation upon the
resumption of en banc sessions.
With the issuance of the TROs
on Dec. 28, Ms. Poe narrowly
avoided having the Comelecs
Dec. 23 en banc resolutions lapse
into finality after a five-day period.
Besides confirming the TROs,
the high court also consolidated
Ms. Poes two electoral cases.
The senators case against the
Comelec Second Divisions grant
of lawyer Estrella C. Elamparos
petition will be merged with her
other case against the Comelec
First Divisions resolution in favor
of Mr. Tatad, political science professor Antonio P. Contreras, and
former law dean Amado D. Valdez.
To recall, the Comelec issued
on Dec. 23 two en banc resolutions affirming the two divisions
actions on the grounds that Ms.
Poe misrepresented her citizenship and residency qualifications.
Meanwhile, the SC also confirmed the setting of the electoral
cases for oral argument on Jan. 19,
2:00 p.m.
However, it postponed the setting for Rizalito Y. Davids separate case against the SETs Nov.
17 ruling retaining Ms. Poe in the
Senate and affirming her citizenship eligibility. Mr. Te said this
will be reset to another date to be
announced.

Mary Jane Veloso gets family birthday visit

A FILIPINA on death row in Indonesia was visited by her family
on Tuesday for a late birthday celebration, as her supporters maintained the single mother would
be proclaimed innocent and escape the firing squad.
Mary Jane Veloso was reunited
with her parents and two children at
a prison in Yogyakarta two days after
her birthday, where they presented
her with gifts and letters from her
supporters in the Philippines.
The 31-year-old was granted a
temporary reprieve in April last
year, just moments before she was
due to be executed alongside eight
other convicted drug traffickers,
including seven foreigners.
The Indonesian government,
which has some of the worlds
toughest anti-narcotics laws,

maintains her death sentence for

drug trafficking still stands.
But her supporters insist Ms. Veloso is innocent and was duped into
carrying a suitcase lined with 2.6
kilograms (5.7 pounds) of heroin.
We are very hopeful. We believe we can set her free, as its
very clear that she is innocent,
Laorence Castillo, an activist
from Filipino migrant workers
organization Migrante International told AFP on Tuesday.
Ms. Veloso was sentenced to
death after her arrest in 2009, but
was granted a temporary reprieve
after a woman suspected of recruiting her was arrested in the
Philippines.
Mr. Castillo said legal proceedings against Ms. Velosos alleged
recruiter were ongoing in the

Philippines, and the matter would

return to court again in February.
A spokesman for the Indonesian attorney generals office told
AFP that Ms. Velosos position
remained unchanged, despite the
ongoing trial in the Philippines.
In Indonesia, her status is still
as a death row convict. There has
been no new updates, the situation is still the same, spokesman Amir Yanto said, adding
that while there was a possibility executions would resume in
2016, none had been scheduled
yet because the government was
focused on Indonesias economy.
Indonesia invoked the ire of
several countries last year when
it executed 14 death row inmates,
including 12 foreigners, for drugs
offenses. AFP

MARIA LEONOR LENI G. ROBREDO with Philippine Star columnist Wilson Lee Flores of Pandesal Forum

Bullish government can tackle

traffic, MRT woes Robredo
By Pola Esguerra del Monte
Assistant Editor, BWorld University

THE LONG-RUNNING controversy over the Metro Rail Transits (MRT) maintenance and the
worsening traffic in Metro Manila
can be resolved by a bullish
government, the ruling Liberal
Partys (LP) vice-presidential bet,
Maria Leonor Leni G. Robredo,
said yesterday, citing the option
of expanding the central business
district to decongest the countrys capital.
Speaking at the popular Pandesal Forum, a Quezon City venue
for public discourse on current
affairs, the sole female vice-presidential candidate said the government was being too careful in
entering into contracts, which
she surmises is driven by fear of
casting suspicion of anomalies in
these agreements.
To be sure, there have been
reports precisely suggesting irregularities in the course of the
MRTs maintenance.
The solutions have already
been studied, but what is needed
is a more bullish government
more bold and more daring, Ms.
Robredo said in a mix of English
and Filipino. Our economy is
improving, but why is there still
hesitation? In anything, not just
the MRT, we need a certain bold-

ness especially for urgent concerns, which demand a balance of

being both careful and bold.
At the House of Representatives, Ms. Robredo represents
the third district of her home
province of Camarines Sur. She is
known to be a commuter herself,
traveling between Metro Manila
and Camarines Sur from time to
time.
Ms. Robredo expressed the
desire to veer away from the congested urban center and develop
the countrys oft-neglected rural
areas. I think the government
should still pursue infrastructure projects to ease traffic, but
thats short-term, she said, citing
that the long-term solution is a
change of direction.
Government funds should be
dispersed toward the rural areas
not only to ease traffic but also
to provide more opportunities to
those who live in those areas, Ms.
Robredo also said.
She recalled how her late
husband Jesse M. Robredo, the
mayor of Naga City from 1988
to 1998 and from 2001 to 2010,
made a bold move early in his administration to remove bus and
jeepney terminals outside Naga
Citys central business district.
Seventy-six cases were slapped
against the mayor whose critics
said his order was prohibitive to
businesses. Yet, as Ms. Robredo
remembered, despite the initial

reaction that saw establishments

closing down, the order gave room
for the central business district to
expand, to the ultimate benefit of
residents and businessmen.
Now that our economy is improving, we are in a better position to think of more daring solutions because we have the funds
to build, Ms. Robredo said.
Josefina Joy Belmonte-Alimurung, Quezon City vice-mayor
and a supporter of Ms. Robredo,
agreed with the vice-presidential
candidate, saying certain decisions, though unpopular, eventually create a positive effect on the
city.
Ms. Robredo saw a sudden
rise in last Decembers Social
Weather Stations Survey, rising
to 19% from 12% last November
to second place, alongside rival
Ferdinand Bongbong R. Marcos, Jr.
Asked how she stands out from
her rivals (who are all senators),
Ms. Robredo said she had the
longest, very extensive experience on the ground, being a civicoriented, largely pro bono lawyer. Aside from being the only
woman, I might be the one with
the deepest understanding of the
woes of the ordinary people, she
said. Because thats where I came
from.
Ms. Robredo is the running
mate of Liberal Party standardbearer Manuel Mar A. Roxas II.

Nation

The
WEDNESDAY, JANUARY 13, 2016

S1/11

AFP

Philippines may import up to

400,000 tons of rice this year

WORKERS unload a truckload of rice at a warehouse of the National Food

Authority in Manila in this Oct. 7, 2014 file photo.

THE PHILIPPINES, one of the worlds top

rice importers, is set to buy 400,000 tons of
the grain for delivery in the second quarter,
and may need an additional 800,000 tons to
cover this years requirements, a grains agency
official said.
This volume is required for the lean
months, beginning July, Renan B. Dalisay,
National Food Authority (NFA) administrator, told Reuters.
Mr. Dalisay said the country may need to
import an additional 800,000 tons to completely cover this years estimated gap between local harvest and consumption, and
maintain a 30-day buffer stock.

The Philippines fresh demand could give

a boost to rice prices in Vietnam and Thailand the countrys main suppliers and the
worlds third and second biggest exporters,
respectively.
Prices in Vietnam, which usually gets the
bigger slice of Philippine rice deals, eased last
week on thin buying demand and limited fresh
supply from an early harvest.
The NFA Council, a panel composed of the
countrys top economic officials, will meet on
Jan. 26 to discuss and possibly approve import
plans for this year, Mr. Dalisay added.
The NFA is looking at a deal with governments of either Vietnam, Thailand, or Cam-

bodia for the additional 400,000-ton supply in

the second quarter.
Mr. Dalisay said another option is to allow private traders to ship in the approved
volume.
Were looking at an annual gap of 1.7 million tons, including 1 million tons for buffer
stock, he said.
The Philippines expects El Nio-induced
dry weather to impact rice production.
Dry weather and cyclones affected local
paddy output last year, with total output estimated at 18.3 million tons, much lower than
the governments target of 20 million tons.
Reuters

By Kathryn Mae P. Tubadeza

Reporter

THE EXECUTIVE department is

prepared to answer questions on
the Mamasapano clash, even before the start of the Senate inquiry on Jan. 25, the date a year ago
of that highly controversial police
operation which brought about a
political crisis on the Aquino administration.
Kung mayroon nakahandang
tanong ang sinumang mambabatas, handang tumugon ang Ehekutibo bago pa man magbukas ang
Senate hearing sa Enero 25 (If any
lawmaker has a ready question,
the Executive is ready to respond
even before the Senate hearing
opens on Jan. 25), Communications Secretary Herminio B. Coloma, Jr. said in a press briefing
on Tuesday.
At malaya ring makapaghahain ng kaukulang kaso o demanda ang sinumang indibidwal

o organisasyon na may sapat na

batayan (Any individual or organization with an adequate basis
has the right file a case), he said.
The Senate committee on
public order and illegal drugs will
conduct the hearing, exactly a
year after the predawn encounter
between members of the Philippine National Police and Moro
fighters in Mamasapano, Maguindanao, which led to the deaths of
44 elite cops, 18 Moro fighters and
five civilians.
According to Mr. Coloma, the
rule stated under Article VI of the
1987 Constitution should be followed if lawmakers wish to invite
members of the Cabinet to the
hearing.
Section 22, Article VI, on the
Legislative department reads:
The heads of departments may
upon their own initiative, with the
consent of the President, or upon
the request of either House, as the
rules of each House shall provide,
appear before and be heard by
such House on any matter pertain-

ing to their departments. Written questions shall be submitted

to the President of the Senate or
the Speaker of the House of Representatives at least three days
before their scheduled appearance. Interpellations shall not be
limited to written questions, but
may cover matters related thereto.
When the security of the State or
the public interest so requires and
the President so states in writing,
the appearance shall be conducted
in executive session.
Mr. Coloma said the government never withdrew information from the public, adding that
President Benigno S. C. Aquino
III had discussed the Mamasapano clash on Jan. 28, Feb. 7, March
9 (the assembly of religious leaders in Malacaang) and March 26
(the Philippine National Police
Academys commencement exercises in Cavite).
He said the Palace expects the
reopened inquiry would be for a
meaningful discussion instead of
politics.

Last Friday, Mr. Aquino said of

the new inquiry: I see that politics plays a big part here. Lets not
forget who started this, I understand they have ill feelings against
my administration.
We know that the campaign
period will start soon and our opponents see this as the biggest
setback of my administration,
he also said in his interview with
reporters in Davao City.
Senator Grace Poe said the
Rules Committee has given its
approval on additional hearings,
in response to a request by Senate Minority Leader Juan Ponce
Enrile.
At a plenary session on Nov.
9 last year, Mr. Enrile moved for
the reopening of the investigation, citing his detention at the
time of the inquiry soon after the
Mamasapano clash. Mr. Enrile
had been detained in connection
with the pork barrel scandal until
August last year, when the Supreme Court ordered his release
on bail.

Supreme Court orders justices son

installed as Marinduque congressman
By Vince Alvic A. F. Nonato
Reporter

THE SUPREME COURT (SC)

has ordered the House of Representatives to install the son of
Associate Justice Presbitero J.
Velasco, Jr., as the elected representative of the lone district of
Marinduque.
Voting 8-1-6, the SC en banc
issued a writ of mandamus ordering House Speaker Feliciano
Sonny R. Belmonte, Jr. to administer the oath of Lord Allan
Jay Q. Velasco as representative.
Likewise, House SecretaryGeneral Marilyn B. Barua-Yap
was ordered to register Mr. Velascos name in the Roll of Members
after he has taken his oath.
Only nine justices tackled the
case; one of them, Associate Justice Arturo D. Brion, dissented.
The elder Mr. Velasco inhibited from his sons case, as did
Associate Justices Diosdado M.

Peralta, Mariano C. del Castillo,

Jose Catral Mendoza, Estela M.
Perlas-Bernabe and Francis H.
Jardeleza.
The high court said these
acts are ministerial duties of the
House Speaker and the Secretary- General that can be compelled by mandamus. The court
said Mr. Velasco is entitled to the
writ because the Commission on
Elections (Comelec) resolutions
and a subsequent SC decision
disqualifying his winning rival,
Regina Ongsiako-Reyes, have all
attained finality as early as 2013.
This left no issue as to who
is the rightful Representative of
the Lone District of the Province
of Marinduque, according to a
brief by SC.
Instead, Ms. Ongsiako-Reyes
remained in her position. Even as
the SC disqualified her with finality in December 2013, the House of
Representatives did not abide by
the ruling as it believed the Comelec no longer had jurisdiction over
a proclaimed winner at that point.

With the SC now ordering him

to install Mr. Velasco as representative, Mr. Belmonte said in a
text message to reporters: Once
[the] decision is final, I will enforce it.
To recall, Ms. Ongsiako-Reyes
was still able to participate in the
May 13, 2013 midterm elections.
At the time, her disqualification
on the grounds of lacking the required one-year residency had
not yet attained finality.
Ms. Ongsiako-Reyes won over
Mr. Velasco, a reelectionist, by a
margin of about 4,000 votes. She
was proclaimed on May 18. The
House of Representatives previously said that the House of Representatives Electoral Tribunal,
not the Comelec, has jurisdiction
over cases to unseat a proclaimed
representative.
Should Mr. Velasco be sworn
in as representative, he will join
his mother, Ang Matay Alagaan
party-list Rep. Lorna Q. Velasco,
in the Houses roll. Ms. Velasco is
the justices wife.

AFP

House to investigate
bombing of transmission
towers in Mindanao
LAWMAKERS on Tuesday filed
a resolution calling on the House
committee on energy to probe the
bombing of transmission towers
of the National Grid Corporation of the Philippines (NGCP) in
Mindanao.
House Resolution No. 2603,
filed by Cagayan de Oro City
Rep. Rufus B. Rodriguez (2nd district) and Abamin Party-list Rep.
Maximo B. Rodriguez, Jr., directs
the committee on energy to conduct an inquiry, in aid of legislation. [T]his serves notice to all
concerned, particularly the Department of Energy, the Energy
Regulatory Commission, NGCP,
Armed Forces of the Philippines
(AFP), Philippine National Police
(PNP) and other agencies and entities which may shed light and
resolve the issue.
There is a need to look into
this very dire situation and find
solutions to the problem and further determine how to prevent it
from happening again, the lawmakers said.
They cited reports from the
NGCP that 16 transmission towers have been bombed as of November last year.
According to the resolution,
the NGCP has been able to finish repairs on some of the towers
but have not been able to repair
others, allegedly, because of uncooperative landowners... who
refuse entry to the personnel of
the NGCP.

PHILIPPINE STAR_MICHAEL VARCAS

AN INJURED police commando (on stretcher) waits to be loaded onto a waiting US military helicopter in the town of Mamasapano on Jan. 26, 2015.

FREEDIGITALPHOTOS.NET

Malacaang ready to answer questions on Mamasapano

The lawmakers said it is the responsibility of the AFP and PNP,

specifically their intelligence
services, to prevent these bombings.
Both the AFP and the PNP
have yet to capture those responsible for the bombings despite a
long period of time having passed
since the latest bombings and
worse, it seems that they have
not elaborated yet the motive of
the bombings, the resolution
read.
If these bombings continue,
Cagayan de Oro City and the
entire Mindanao will suffer devastating brownouts, it further
read.
Last week, Communications
Secretary Herminio B. Coloma,
Jr. said the Department of Energy
is coordinating efforts to ensure
continuous and reliable power
supply in Mindanao.
He said the provincial government of Lanao del Sur is working with other concerned local
government units, as well as the
NGCP, to beef up security for
these transmission towers and to
address right-of-way issues with
landowners where these towers
are located.
Mr. Coloma earlier said the Office of the Executive Secretary has
coordinated with the Defense and
Interior departments to secure
clearing operations under the
transmission lines. Kathryn
Mae P. Tubadeza

STREET DWELLERS at
Agham Road in Quezon City

Palace clarifies family planning budget

MALACAANG on Tuesday
said there is still an allocation for family planning under
the 2016 national budget, despite the reported budget cut
amounting to P862,794,000.
Under the 2016 National
Expenditure Program, the
proposed amount for the
family planning program was
P3,137,872,000, which is lodged
under the women and mens
health development component of the DoH (Department
of Health) Family Health and
Responsible Parenting, Com-

munications Secretary Herminio B. Coloma, Jr. said in a

press briefing on Tuesday, quoting Budget Secretary Florencio
B. Abad.
Mr. Coloma said that in
the 2016 General Appropriations Act, the amount was
reduced to P2,275,078,000.
The decrease amounting to
P862,794,000 pertains to the
procurement of the Implanon
implant, which is a contraceptive, he added.
Senator Vicente C. Sotto
III had intimated during the

Senate deliberations that he

would move to delete the budget for the Implanon in view of
the Supreme Courts temporary
restraining order on the distribution and sale of the contraceptive.
In July last year, the Supreme
Court ordered the Health department to stop authorizing
the distribution and sale of
contraceptives as mandated by
the controversial Responsible
Parenthood and Reproductive
Health Act of 2012. K. M. P.
Tubadeza

MOTORCYCLEACCESSORIES
ACCESSORIES
MOTORCYCLE

BEAUTY
AND
WELLNESS
LASIK
AND
AESTHETICS

MANUFACTURING
MANUFACTURING

FORMERLY
BOYD COFFEE CO. PHIL

Japan's # 1 Aesthetic Center

And World's Largest Intralasik
Eye Surgery Provider

ABOVE AESTHETICS CENTER

(ACUPUNCTURE)

Mezzanine,
Tower
Corporate
101 Bldg.
Unit2,103 G/F,
The
Enterprise
Center,
Mother
Ignacia
Cor. Sct.Madrinan,
6766South
Ayala Ave.
cor. Quezon
Paseo deCity
Roxas,
Triangle
Makati
City,
Philippines.
Tel. No.
(02)376-2664
Hotline:
(+632)
846-3197
Mobile
nos.
(0917)
513-7491
(+632) 491-0000
www.aboveaesthetics.com
Email: inquiry@shinagawa.ph
www.wrinklefreetemcellthecnology
Website:
www.shinagawa.ph
www.beautyhealthwealth.biz

PROPERTY
RESTAURANTS & CAFES

ENTERTAINMENT
ENTERTAINMENT

QUEEEN ANNEs
Clinic
S E R V I C E S O FSPA
FERED

Diode Scanning laser Hair Removal

Diamond Peel 10 sessions
Frequency +Garden
Lipo Cavitation
10 sessions
Unit Radio
GH Dansalan
Condominium,
Digiperm or Hair Rebond
Barangay Malamig,
Mandaluyong City.
Keratin Blowdry Treatment
Mobile:
(0916)
245-4157
Body scrub and massage and skin whitening
(0908)
Address: 4 Madison
Square623-0103
Pioneer St. Mandaluyong City

GIA
SOAP MAKING

Buhangin Davao City - Philippines

ContactMobile:
no.: (0916) 627-2545
www.natureessntials.com.ph
(0923) 535-1648
www.facebook.com/natureessentialsph
(0915) 659-5180
instagram: @natureessentials
giasoapmaking@yahoo.com
email:
inquiry@natureessentials.com.ph

BRANCHES:
Iloilo Supermart Atrium
Iloilo Supermart Valeria
Iloilo Supermart Mandurriao
Iloilo Supermart Jaro
Iloilo Supermart Villa

PING-PING

STORE

LECHON & RESTAURANT, INC.

MAIN:
14 A. Bonifacio Ave.
cor.MAGNETIC
Mariveles St.
Laloma, Q.C.
AGT
ENTERPRISES
Tel: 740-2111 741-6874 740-2175 741-3027
GLASS AND ALUMINUM
741-9995 413-2622
BRANCH:
St. Francis Village Phase II, Doleres,
360 Blumentritt Ext. cor. N.S. Amoranto, Q.C.
City ofTel:
San
Fernando,
Pampanga
741-6955
741-8668

Mobile: (0917) 510-7090

Tel.: (045) 961-4448

Unit 2 Lower Ground, 20 Lansbergh Place,

775-8800
(0906)
3535886
Unit
1-2 Ferosa
Condominium
2040 Donada
St.this
Pasay
City
and present
to avail
of our
us on
Philippines
1306
BUY
1 GET 1 FREE
Cut thisCLASSIC
Voucher to
Avail of
20% Discount
FACIAL
- P300

on Any of the
Services
www.facebook.com/dermquest

GLASS AND ALUMINUM

Professional Services
CLUBFITTING
CUSTOM GOLF CLUBS
CLUB REPAIR

MAIN BRANCH: 1650 Dapitan St. corner

Don Quijote St., Sampaloc.
Manila Outlets:
Market-Market, Global City, Taguig City.
Tonyos Grill & Breadhouse, 510 Earnshaw
St., Sampaloc, Manila. Fishermall, 3rd
Floor, Quezon Boulevard, Quezon City.
Stop N Shop (in front of Sacred Heart of
Jesus Paris), 4315 Old Sta. Mesa, Manila.

DIGITAL PRINTING
SCHOOL

West Avenue, Quezon City

Complementary/Integrative Medical Services

for inquiries,
us oncall/text:and present this to avail of our

709-5724 toBUY
25 | (0998)
987-3616
1 GET
1 FREE| (0935) 658-5281

2nd Floor, Hollywood Square Bldg., 33 West Avenue, Q.C. 1104

CLASSIC
FACIAL - P300
cwcmanila@yahoo.com
www.facebook.com/dermquest

SKIN PERFECTION
Dermatological Formulation

St. Francis Village Phase II, Doleres,

City of San Fernando, Pampanga
Mobile: (0917) 510-7090
Tel.: (045) 961-4448

Professional Services
CLUBFITTING
CUSTOM GOLF CLUBS
CLUB REPAIR
PRESENT THIS AD
Makati Golf Club Driving Range, 7232 Malugay St. Makati City
FOR
YOUR GROUP
DISCOUNT
Tel. No.:
(02)845-0429;
Mobile No.:
0917-811-4653

PRODUCTS
OFFERED:
Informatics
Computer
Institute
Filinvest Center
Outdoor Sticker
Laminating Film
Outdoor Backlit
Perforated Sticker
2 Year Associate
Degree
Film For SolventTechnology
Textured Laminating
Information
Digital
Direct On Concrete
Film
Media Technology
Sticker and Animation
Reflective Sticker
Gaming
Technology
Eco Solvent And
Printable Wallpaper
6 Month TESDA Certification
Latex Ink
Sticker
Programming
Certificate
Clear Sticker in Computer
Glow In The Dark Sticker
Hardware
Certificate
Perfectly Flat in Computer
Reflective Tarpaulin
Servicing
Photo
Paper
Pp Film Matte
in Technical Drafting
Certificate
Frosted Sticker
122 Sto.
Domingo
Avenue,
Brgy
4L Festival
Supermall,
Filinvest
Corporate
Siena,
Quezon
City Filinvest,
Alabang
1771,City
Muntinlupa
Tel:
7428048 | TeleFax:
711-7704
City
Philippines.
Tel.: 771-0401
Mobile: (0917) 856-4496

EVENT VENUE

PRESENT THIS AD
FOR YOUR GROUP DISCOUNT

Southwoods Ecocentrum Binan,

Laguna Philippines.
Mobile: (0918) 574-2462/(0917) 506-0576

www.splashisland.net

BREAD HOUSE

REVIEW & TUTORIAL CENTER

Metro Manilas original artisanal pugon bakery

43 Judge Jimenez Street corner K-1st

Street, Kamuning, Quezon City
Tels: 929-2216, 794-5043,
(0917) 520-2756, (0922) 832-1888,
(0917) 848-1818

HEALTH

va il
to a on
Cut count rses
dis t cou
r
sh o

MFI Building, Ortigas Avenue, Pasig City

Ortigas Campus: 633-36-23; 634-2970
Pasay Branch: 846-5142 to 43
/mfifoundationinc
@MFI_Foundation
mfi_foundation_inc
www.mfi.org.ph

EVENT VENUE

315 Katipunan Avenue, Loyola Heights,

Quezon City Tel. No. 925-7544, 9299145, 929-7279,
QC 435-6062 Makati 815-1307 Alabang 659-0085 SM Fairview 935-0011
Cainta 646-8243 Antipolo 646-8245
Cebu (032) 255-2191 Sta. Rosa (049)
544-1071

CREATIVE SERVICES

www.customclubmakersgolf.com

Southwoods Ecocentrum Binan,

Laguna Philippines.
Mobile: (0918) 574-2462/(0917) 506-0576

One Complete Wellness Center

OTHER SERVICES:
Asian Fusion
Foot Ion Detox
Unit 2 Lower Ground,
20 Lansbergh Place,
Quantum Body Analysis
Ventosa
Infrared Sauna
Tomas Morato, Q. C. Mon-Sat
10am-9pm
Body and Mind Massage
Foot Reflexology
Charcoal Body Wrap
Lymphatic Drainage Massage

Fever Bath

Steam Bath
775-8800 (0906) 3535886

For inquiries, Call: 535-7943 / 532-2826

AGT MAGNETIC ENTERPRISES

WATERPARK

Makati Golf Club Driving Range, 7232 Malugay St. Makati City
Tel. No.: (02)845-0429; Mobile No.: 0917-811-4653
www.customclubmakersgolf.com

Tel. (02)696-7775;
(0905)353-2174
ACE WATERMobile.
SPA AND
CAF
S E R V 399
I C E S Del
O F FMonte
E R E D Avenue,
Quezon City:
Scanning
laser Hair
Removal
(near Diode
corner
Banaue
St.)
SFDM,
Qu Diamond Peel 10 sessions
Radio Frequencyezon
+ Lipo City
Cavitation 10 sessions
Tel. No.: 367-8041;
Digiperm or367-8062;
Hair Rebond 415-0164
Keratin
Blowdry
Treatment
Fax No.:
415-2477
Body scrub and massage and skin whitening
Pasig
City: United Street, Bo. Kapitolyo,
Address: 4 Madison Square
Pioneer
Pasig CitySt. Mandaluyong City

Open Every Fridays and Saturdays

Show & Entrance P750
7:30 (Dinner-Club Dance)
Open Every Fridays and Saturdays
9:30 p.m. (Show Time)
Show & Entrance P750
11:00-Onwards (Party Time)
7:30 (Dinner-Club Dance)
For inquiries,
Call:
535-7943
/ 532-2826
9:30
p.m.
(Show Time)
11:00-Onwards (Party Time)

STORE

TELEPHONE:
(02)Morato,
975.3866
MOBILE:10am-9pm
(0917) 517.2668
Tomas
Q. C. Mon-Sat

Unit 1-2 Ferosa Condominium

2040 Donada St. Pasay City
Philippines 1306
Cut this Voucher to Avail of 20% Discount
on Any of the Services

ROOM RENTALS
WATERPARK

We Sell

Tel. (02)696-7775; Mobile. (0905)353-2174

BREAD HOUSE

TELEPHONE: (02) 975.3866 MOBILE: (0917) 517.2668

QuezonG.
City;
Tel.: 576-0916
1281
Araneta
Avenue, corner Calamba
MAKATI
SAN JUAN
Street. Sto. Domingo, Quezon
City
210 N. Domingo St. Tel.: 576-0916
2215 Pasong Tamo, San
San Juan; Tel.:
414-4724
Lorenzo, Makati City
www.securestorage.ph
E-mail:
inquire@amci.ph
www.securestorage.ph

Open for Franchise!

For inquiries call us at
(02)920-2799; (0917) 419-1188
(0917) 852-4417; (0925) 889-1167

ABOVE AESTHETICS CENTER

(ACUPUNCTURE)
Corporate 101 Bldg. Unit 103 G/F,
Mother Ignacia Cor. Sct.Madrinan,
South Triangle Quezon City
Tel. No.
(02)376-2664
Contact
no.:
(0916) 627-2545
Mobile
nos. (0917) 513-7491
www.natureessntials.com.ph
www.facebook.com/natureessentialsph
www.aboveaesthetics.com
instagram: @natureessentials
www.wrinklefreetemcellthecnology
email:
inquiry@natureessentials.com.ph
www.beautyhealthwealth.biz

1281 G. Araneta Avenue, corner Calamba Street, Sto. Domingo,

Tires
Battery
Engine Oils

BEAUTY AND WELLNESS

Unit GH Dansalan Garden Condominium,

Barangay Malamig, Mandaluyong City.
Mobile: (0916) 245-4157
(0908) 623-0103

STORAGE
STORAGE

QUEZON CITY

Services Offered
Computerized Wheel Alignment
Computerized Wheel Balancing
Under Chassis Repair
Tune Up
Change Oil

CELESTY
The Science of Whitening

QUEEEN ANNEs
SPA Clinic

AUTOMOTIVEFRANCHISE
FRANCHISE
AUTOMOTIVE

HENRY & SONS

Trading and Manufacturing Company INC.
Sheridan Corner Pines St. Mandaluyong City
Tel.: (02) 746-3253 | (02) 742-2233
Fax: (02) 746-3231 | (02) 746-2693
Email: info@henryandsons.ph
www.boydphil.com

www.splashisland.net
Metro Manilas original artisanal pugon bakery

43 Judge Jimenez Street corner K-1st

Street, Kamuning, Quezon City
Tels: 929-2216, 794-5043,
(0917) 520-2756, (0922) 832-1888,
(0917) 848-1818

REVIEW & TUTORIAL CENTER

EVENT COORDINATOR

(0917) 658-7676

Mobile.:
www.facebook.com/jtplasticware
HEALTH

/ SkinPerfectionPhilippines
100% Natural ingredients
Nano technology
Peptide chemistry
ACE WATER SPA AND CAF
Perfectly delivered results
Quezon
City: 399 Del Monte Avenue,
in just 28 days

Gel

(near corner Banaue St.) SFDM, QuContact us at:

ezon City
654-5890
loc. 8021; Unit 2003
Orient Square Bldg.
F. Ortigas Jr.
Tel.
No.: 367-8041;
367-8062;
415-0164
Rd. Ortigas Business
Center,
Pasig City
Fax No.:
415-2477
Pasig City: United Street, Bo. Kapitolyo,
Pasig City

PEST CONTROL SERVICES

315 Katipunan Avenue, Loyola Heights,
Quezon City Tel. No. 925-7544, 9299145, 929-7279,
QC 435-6062 Makati 815-1307 Alabang 659-0085 SM Fairview 935-0011
Cainta 646-8243 Antipolo 646-8245
Cebu (032) 255-2191 Sta. Rosa (049)
544-1071

HOTEL

GIA
SOAP MAKING

4th Level Greenbelt 5,

Ayala Center, Makati City.
Tel. Nos.: (632) 239-6821/239-8593
Healthway Edsa Shangri-la
5/F Wellness Zone, Shangri-la
Plaza Mall
Healthway Alabang Town Center
2/F Alabang Town Center
Healthway Festival Supermall
2/F Pixie Forest Entrance
Healthway The Block SM City
5th Level, The Block
Healthway Market Market
4th Floor Market Market
Healthway Robinsons Place
Ground Floor, Padre Faura Entrance
Robinsons Place Ermita
Clinic hours 7AM-8PM, customer
care hotline 751-HWAY (4929)
Website www.healthway.com.ph

Buhangin Davao City - Philippines

Mobile:
(0923) 535-1648
(0915) 659-5180
giasoapmaking@yahoo.com

CREATIVE SERVICES

SALES & RENTALS

Gel

Classic Spray

Apply on elbows, lower back, knees

and ankles or wherever it hurts

WATER STATION

GYMBOREE GREENBELT 5
Tel. Nos.: 728-GROW (4769) / 728-1000
gymboree.greenbelt5@gmail.com
facebook/GYMBOREE GREENBELT
GYMBOREE SM MEGA FASHION HALL
Tel. No.: 477-9853; gymboree.megamall@gmail.com
facebook/GYMBOREE MEGAMALL

www.gymboree-ph.com

www.gymboree-ph.com

2 Year Associate Degree

Information Technology
Digital Media Technology
HOTEL
Gaming and Animation Technology

227 GP Eastbank Road Kapitbahayan

Brgy., Sta Lucia, Manggahan
Floodway, Pasig City, Philippines 1611
Tel: (02) 7480924 (02) 7481003
Fax: (02) 7481003 Mobile: 09178395378
E-mail: info@dimension-all.com
Website: www.dimension-all.com

WATER STATION
PROMOTIONS

ALTERATION
ALTERATION

177 MC2 Bldg. Congressional Avenue,

177 MC2 Bldg. Congressional Avenue,
Brgy. Bahay Toro, Quezon City
Brgy. Bahay Toro, Quezon City
Tel. Nos.: 922-3128 332-6025
Tel. Nos.: 922-3128 332-6025
www.parasalteration.net
www.parasalteration.net

PEST CONTROL
SERVICES
SALES
& RENTALS

va il
to a on
Cut count rses
dis t cou
r
sh o

/mfifoundationinc
mfi_foundation_inc

Available in selected drugstores

and top quality sport shops
www.perskindol.asia

GYMBOREE GREENBELT 5
Tel. Nos.: 728-GROW (4769) / 728-1000
gymboree.greenbelt5@gmail.com
facebook/GYMBOREE GREENBELT
GYMBOREE SM MEGA FASHION HALL
Tel. No.: 477-9853; gymboree.megamall@gmail.com
facebook/GYMBOREE MEGAMALL

Address: #520 Congbalay Bldg. N. Lopez Ave.

Paraaque City
Contact Nos.: 826-7201 / 826-7253
EmailInformatics
Add: cust-ser@timberpro.com.ph
Computer Institute
Website: www.timberpro.com.ph
Filinvest Center

FERNANDINA 88 SUITES HOTEL

222 P. Tuazon Blvd., Cubao, Q.C.
Tel.: 911-6965 / 911-3169
MFIwww.fernandina88.com.ph
Building, Ortigas Avenue, Pasig City
Ortigas Campus: 633-36-23; 634-2970
www.fernandinagardensuites.com
Pasay Branch: 846-5142 to 43
www.fernandinatagaytayvilla.com

Cool Spray

Available in selected drugstores

and top quality sport shops
www.perskindol.asia

SCHOOL

4L Festival Supermall, Filinvest Corporate

City Filinvest, Alabang 1771, Muntinlupa
City Philippines. Tel.: 771-0401
Mobile: (0917) 856-4496

EVENT COORDINATOR

Cool Spray

The Premier Pest Management Service Provider

6 Month TESDA Certification

Certificate in Computer Programming
Certificate in Computer Hardware
Servicing
Certificate in Technical Drafting

FERNANDINA 88 SUITES HOTEL

222 P. Tuazon Blvd., Cubao, Q.C.
Tel.: 911-6965 / 911-3169
www.fernandina88.com.ph
www.fernandinagardensuites.com
www.fernandinatagaytayvilla.com

Classic Spray

Apply on elbows, lower back, knees

and ankles or wherever it hurts

@MFI_Foundation
www.mfi.org.ph

The Premier Pest Management Service Provider

Address: #520 Congbalay Bldg. N. Lopez Ave.
Paraaque City
Contact Nos.: 826-7201 / 826-7253
Email Add: cust-ser@timberpro.com.ph
Website: www.timberpro.com.ph

PROMOTIONS

227 GP Eastbank Road Kapitbahayan

Brgy., Sta Lucia, Manggahan
Floodway, Pasig City, Philippines 1611
Tel: (02) 7480924 (02) 7481003
Fax: (02) 7481003 Mobile: 09178395378
E-mail: info@dimension-all.com
Website: www.dimension-all.com

you would
would like
like to
to be
be listed
listed in
in this
this directory,
directory,please
please contact
contact the
the Circulation
Circulation Department
Department at
at 535-9901
535-9901 or
or e-mail:
e-mail:circ@bworldonline.com
circ@bworldonline.com
IfIf you

S2/1

VOL XXIX ISSUE 118 ISSN0116-3930

w w w . b w o r l d o n l i n e . c o m S2/1-8 STOCK MARKET WORLD SPORTS BULLETINS ARTS & LEISURE

EDITOR BETTINA FAYE V. ROC

WEDNESDAY
JANUARY 13, 2016

Banking&Finance

BUSINESS
NEWSPAPER
OF 2014
AND 2015
Awarded by

ROTARY
CLUB OF
MANILA

BW FILE PHOTO

Fed hike bets, market volatility

drive up yield on 10-year bonds
By Imee Charlee C. Delavin
Reporter

RCBC Savings Bank, the thrift unit of listed Rizal Commercial Banking Corp.,
targets to expand its loan book by 25% this year.

RCBC Savings targeting

25% growth in loan book
RCBC Savings Bank, Inc. the
thrift banking arm of listed Rizal
Commercial
Banking
Corp.
(RCBC), is looking to grow its
loan portfolio by 25% this year,
with retail lending seen to drive
growth.
RCBC Savings Executive
Vice-President Lizette Margaret
Mary J. Racela said the targets
are quite high precisely because
we see that the consumer loans
would still be giving us the necessary volume for our bottom lines.
Weve grown our bookings
for a compounded annual growth
rate of about 25% for the past five
years. So we are hoping that we
will still be able to maintain and

get the market share [this year],

Ms. Racela told reporters in a media briefing yesterday.
The loan portfolio of the thriftarm of the Yuchengco-led lender
stood at almost P25 billion in
2015, posting a 22% growth yearon-year, the official said. On bookings, the RCBC Savings official
noted that they want to grow by
40%.
RCBC Savings grew its auto
loans by around 29% year-onyear in 2015, while housing loans
expanded by 16%, Ms. Racela
added.
Loans to small and medium
enterprises (SME), meanwhile,
RCBC, S2/ 3

Source: BSP

BSP REFERENCE RATE

TUESDAY, JANUARY 12, 2016

Equivalent Equivalent Equivalent Equivalent Equivalent Equivalent

of foreign
of US$1 of foreign
of RPP in of foreign
of EURO

currency in
in foreign currency in
foreign currency in in foreign
Currency
US Dollar
currency
RP peso
currency
EURO
currency

Convertible currencies with BSP
US dollar
1.000000
1.000000
47.2710
0.021155
0.9209
1.085900
Japanese yen
0.008496 117.702448
0.4016 2.490040
0.0078
127.811861
UK pound
1.453900
0.687805
68.7273
0.014550
1.3389
0.746888
Hongkong dollar
0.128838
7.761685
6.0903
0.164196
0.1186
8.428434
Swiss franc
0.998104
1.001900
47.1814
0.021195
0.9191
1.087963
Canada dollar
0.703185
1.422101
33.2403 0.030084
0.6476
1.544258
Singapore dollar
0.697010
1.434700
32.9484
0.030350
0.6419
1.557941
Australia dollar
0.698812
1.431000
33.0335
0.030272
0.6435
1.553922
Bahrain dinar *
2.657454
0.376300
125.6205 0.007960
2.4472
0.408624
Kuwait dinar
N/A
N/A
N/A
N/A
N/A
N/A
Saudi Arabia rial
0.266418
3.753500
12.5938 0.079404
0.2453
4.075926
Brunei dollar
0.694589
1.439700
32.8339 0.030456
0.6396
1.563370
Indonesia rupiah
0.000072 13888.888889
0.0034 294.117647
0.0001 15151.515152
Thailand baht
0.027571 36.269994
1.3033
0.767283
0.0254 39.385585
U. A. E. Dirham
0.272279
3.672703
12.8709
0.077695
0.2507
3.988195
E.M.U. euro
1.085900
0.920895
51.3316
0.019481
1.0000 1.000000
South Korea won
0.000829 1206.272618
0.0392 25.510204
0.0008 1310.615990
China yuan **
0.152219
6.569482
7.1955
0.138976
0.1402
7.133787

Others (Not Convertible with BSP)
Argentina peso
0.072297
13.831833
3.4176
0.292603
0.0666
15.019977
Brazil real
0.247158
4.045995
11.6834
0.085592
0.2276
4.393538
Denmark kroner
0.145518
6.872002
6.8788
0.145374
0.1340
7.462297
India rupee
0.014976 66.773504
0.7079
1.412629
0.0138
72.511058
Malaysia ringgit
0.228311
4.379990
10.7925
0.092657
0.2103
4.756243
Mexico new peso
0.055897
17.890048
2.6423
0.378458
0.0515 19.426906
New Zealand dollar 0.655093
1.526501
30.9669
0.032293
0.6033
1.657627
Norway kroner
0.111892
8.937189
5.2892
0.189065
0.1030
9.704875
Pakistan rupee
0.009545 104.766894
0.4512
2.216312
0.0088 113.765643
South African rand 0.059747
16.737242
2.8243
0.354070
0.0550
18.174879
Sweden kroner
0.117196
8.532714
5.5400
0.180505
0.1079
9.265694
Syria pound
0.004551 219.731927
0.2151 4.649000
0.0042 238.606538
Taiwan dollar
0.029975
33.361134
1.4169
0.705766
0.0276 36.226634
Venezuela bolivar
0.159129
6.284210
7.5222
0.132940
0.1465
6.824029
SDR Rate = $1.38557 SDR GOLD Buying: $1,095.75 SILVER Buying:
$13.85
* Various banks in Bahrain as quoted in Reuters Screen
** Asian Time Closing Rate as of January 11, 2015

Phil

one unit of currency

Philippines
Australia
Bahrain
Canada

By Melissa Luz T. Lopez

Reporter

THE CENTRAL BANK further

trimmed its losses in November
as it booked more revenues from
a year ago owing to higher interest earnings, data from the Bangko Sentral ng Pilipinas (BSP)
showed.
Latest available data posted
on the BSPs Web site showed
that the central bank posted a
net loss of P3.77 billion as of
November, improving from the
P7.19-billion loss seen a year ago
and the P4.41 billion recorded at
end-October.

Japan

Saudi

Spore

GLOBAL BANKING regulators

pledged to refrain from further
tightening capital requirements
with new rules to be finalized in
2016, dispelling industry fears
that triggered intense lobbying
efforts over the past year.
The Basel Committee on
Banking Supervision doesnt plan
to raise capital requirements
across the board in the remaining
projects of its post-crisis bank
rule overhaul, it said Jan. 11 after
a meeting of its oversight body,
chaired by European Central
Bank President Mario Draghi.
The group, which includes the
Bank of England and US Federal
Reserve, said it will assess the potential costs of any additional
action.
The committee will conduct
a quantitative impact assessment
during the year, the group said
in a statement. As a result of this

Swiss

UK

US

EMU

peso dollar dinar dollar dollar yen rial dollar franc pound dollar euro
1.0000 0.0303 0.0080 0.0301 0.1642 2.4900 0.0794 0.0304 0.0212 0.0146 0.0212 0.0195
33.0335 1.0000 0.2630 0.9938 5.4240 82.2547 2.6230 1.0026 0.7001 0.4806 0.6988 0.6435

125.6205 3.8028 1.0000 3.7792 20.6263 312.8000 9.9748

3.8126 2.6625

1.8278 2.6575 2.4472

33.2403 1.0063 0.2646 1.0000 5.4579 82.7697 2.6394 1.0089 0.7045 0.4837 0.7032 0.6476

Hong Kong

6.0903

Japan

0.4016 0.0122 0.0032 0.0121 0.0659 1.0000 0.0319 0.0122 0.0085 0.0058 0.0085 0.0078

Saudi Arabia

12.5938 0.3812 0.1003 0.3789 2.0678 31.3591 1.0000 0.3822 0.2669 0.1832 0.2664 0.2453

Singapore

32.9484 0.9974 0.2623 0.9912 5.4100 82.0428 2.6162 1.0000 0.6983 0.4794 0.6970 0.6419

Switzerland

0.1844 0.0485

0.1832 1.0000

15.1651 0.4836

0.1848

0.1291 0.0886

0.1288

0.1186

47.1814 1.4283 0.3756 1.4194 7.7470 117.4836 3.7464 1.4320 1.0000 0.6865 0.9981 0.9191
0.5471 2.0676 11.2847 171.1337

United Kingdom

68.7273 2.0805

United States

47.2710

EMU

51.3316 1.5539 0.4086 1.5443 8.4284 127.8177 4.0759 1.5579 1.0880 0.7469 1.0859 1.0000

1.4310 0.3763

1.4221

7.7617 117.7067

5.4572 2.0859

1.4567 1.0000

3.7535

1.0019 0.6878 1.0000 0.9209

1.4347

award was expected since the

rates went up.
The partial award is expected
as some rates were really so high.
The rates meanwhile, were almost in line with secondary, the
trader said, adding that market
is pricing in future rate hikes and
persisting uncertainty in China.
The government plans to borrow up to P135 billion from the
domestic market in this quarter
through offerings of P60 billion
worth of Treasury bills (T-bills)
and P75 billion worth of T-bonds.

NOT THE RIGHT TIME

Meanwhile, Mr. Tan said current

market conditions are not suitable for its planned offshore bond
offer announced earlier.
Definitely, these times are not
the right time. So itssomething
Bonds, S2/ 3

For the 11 months to November, revenues rose by 12.3% to

P52.02 billion from the P46.31
billion year-ago figure.
The increase was driven by a
jump in interest income to P35.48
billion, 17.2% higher than November 2014s P30.27 billion.
Income drawn from miscellaneous sources such as fees
and commissions, earnings from
acquired assets, and gains from
securities trading in the open
market also rose slightly to
P16.54 billion from P16.04 billion.
The uptick in income was
coupled with a minimal rise in operating expenses, which stood at
P65.72 billion at end-November,
only 3.9% higher than the P63.25

billion which the BSP spent in the

same period in 2014.
Interest expenses rose to
P44.72 billion in the period, a tad
higher than the P42.28 billion tallied in 2014. Spending on other
items, meanwhile, stood flat at
P21 billion for the period.
The central bank also booked
more income from foreign exchange fluctuations at P9.93
billion, slightly higher than the
P9.75 billion recorded a year ago.
As the countrys sole monetary
authority, the BSP participates in
currency trade to temper sharp
movements in the foreign exchange market.
The BSP has been in the red
since 2010 at P59.04 billion. In

2014, the bank posted a net loss

of P10.11 billion, improving from
the P17.51 billion loss seen the
previous year.
Central bank officials are still
awaiting Congressional approval
on a measure amending the BSPs
charter, with a key reform hiking
its authorized capital to P200 billion from the current P50 billion
to better sustain its operations.
The measure also allows the
central bank to put up its own
reserves against foreign exchange
fluctuations.
The bill has been approved
on third reading by the House of
Representatives last October but
a counterpart proposal remains
pending at the Senate.

Lenders fears eased as Basel nixes capital increase

TUESDAY, JANUARY 12, 2016

Aussie Bahrain Canadian HKong

market direction, as well as the

demand side, National Treasurer Roberto B. Tan told reporters
after the auction.
The bids were reflective of
whats happening in the market,
he added.
First of all the [Federal Reserve] decision of increasing
rates, and then some anticipation
of future Fed hikes, as communicated by the Fed. Then of course
Chinas effect on the capital
markets is really creating some
uncertainty. But I think for the
Philippines particularly, on deep
[securities] like this one, we have
observed quite a stable behavior
in the trading performance. So
this is quite reflective of market
concerns and price, Mr. Tan
added.
A bond trader interviewed by
phone yesterday said the partial

Bangko Sentral net loss down at end-November

Source: BSP

PESO CROSS RATES

THE GOVERNMENT yesterday made a partial award of reissued 10-year Treasury bonds
(T-bonds) as bids by banks went
higher, with market players now
pricing in future US rate hikes,
and on persisting volatilities.
At its auction on Tuesday, the
Bureau of the Treasury raised just
P22.18 billion out of the planned
P25-billion borrowing from the
2025 bonds, which have a remaining life of nine years and eight
months.
Total tenders reached P28.08
billion, a little over the governments offer.
The debt papers were quoted
at 4.218%, 96.8 basis points (bps)

higher than the previous average

rate of 3.039%.
These yields are also higher
than the 3.625% coupon rate the
papers fetched when they were
originally issued last Sept. 9.
Had the government made a
full award of the bonds, the average rate would have climbed
further to 4.226%, 97.6 bps higher
than the previous issues yield.
The average rates seen during
the auction were also higher than
the 4.177% quoted for the 10-year
bonds at noon time yesterday before the auction.
At the close of trading at the
secondary market yesterday, the
bonds fetched a higher yield of
4.1952%.
I think it turned out quite well
although we partially rejected,
but I think the bids were serious bids. The reference was really

1.4539

1.3389

assessment, the committee will

focus on not significantly increasing overall capital requirements.
Basels slate of rules for this
year, including a review of trading risks that the committee
endorsed on Jan. 10, have faced
heavy criticism from bankers,
who say onerous new capital
charges would crimp their ability
to lend.
The overhaul of how banks
value risky assets has led industry
executives to warn a regulatory
onslaught sometimes referred
to as Basel IV is still ahead, even
after the last decade of new rules
designed to prevent another market meltdown.

BASEL IV

Karen Shaw Petrou, managing

partner of Washington-based research firm Federal Financial Analytics Inc. said the Basels latest

statement is a response to bankers warnings.

Global regulators clearly hope
to tamp down continuing talk of a
Basel IV rule, emphasizing in
both action and statements that
continuing changes are recalibrations, not hikes, Petrou said in
an e-mail.
Draghi said the agreements
reached by the Basel committee
and the upcoming agenda seek to
provide greater clarity about the
capital framework and, a clear
path for completing post- crisis
reforms.
As part of this process, the regulator will hold a public consultation on removing internal-model
approaches for some risks, such
as the Advanced Measurement
Approach for operational risk,
as well as on setting additional
constraints on the use of internal
model approaches for credit risk,

in particular through the use of

floors.
The committee also sounded
a soft note on another lingering
worry of bankers, the unweighted
leverage ratio.
It will keep the minimum
amount of capital per total assets unchanged at 3%, when it
becomes a binding requirement
in 2018, it said. For the worlds
biggest banks, there may be an
add-on, it said, without elaborating.

REVISED BOUNDARY

The regulator approved new

market-risk rules, known as the
Fundamental review of the trading book, that take effect in 2019.
Improvements include a revised
boundary between the banking
and trading books that will reduce scope for arbitrage, and
Basel, S2/ 3

Stock Market

The

2/S2

EDITOR BETTINA FAYE V. ROC

WEDNESDAY, JANUARY 13, 2016

PHL stocks recover as investors pick up bargains

record closing high of 8,127.48
logged on April 10, 2015 to meet
the common definition of a bear
market: a 20% drop from a previous high.
For the week, I advise investors to let it stabilize before getting back. On a technical note, let
the gap fill in (the gap is between
6,523 to 6,555) before stepping
into the volatile market, Ms. Telagen said.
Lexter L. Azurin, head of research at Unicapital Securities,
Inc., echoed this view, saying in
a separate text message: Market

0.48% to settle at 3,645.46 at the

closing bell.
Its just bargain hunting of
selected stocks after heavy selloff yesterday, Joylin F. Telagen,
equity research analyst at IB
Gimenez Securities, Inc., said in a
mobile phone reply.
At the start of the trading week,
the PSEi entered bear market territory after falling to its lowest
level in nearly two years, amid a
regional sell-off over concerns of
a slowdown in Chinas economy.
The local barometer closed at
6,288.26, shaving 22.63% off its

LOCAL SHARES partially recovered from Mondays bloodbath

yesterday after investors seized
buying opportunities on markeddown equities, analysts said.
The bellwether Philippine
Stock Exchange index (PSEi)
bounced back by 42.29 points or
0.67% to end yesterdays trading at 6,330.55. It however pared
heftier gains logged during the
session, which saw the main
gauge rise to an intraday high of
6,433.75.
The broader all-shares index
also recouped 17.49 points or

billion logged in the previous session.

We have heard people call this
a bear market after it broke below
the 6,500 line. There are warning
signs all around... Caution still is
the name of our game, Justino B.
Calaycay, Jr., analyst at Philstocks
Financial, Inc., said in a market
report.
Chart-wise, the PSEis immediate resistance lies at 6,600,
while support is between 6,300
and 6,200, according to Unicapitals Mr. Azurin. Daphne J.
Magturo

On the other hand, holding

firms ended flat, losing less than
a point, while the mining and oil
subindex dropped 59.44 points or
0.64% to 9,189.98.
Value turnover yesterday
shrank to P4.70 billion after 1.20
billion shares changed hands,
from Mondays P7.23 billion.
Gainers outnumbered losers,
96 to 77, while 45 issues did not
move.
Foreign investors continued
to dump local shares, but net
outflows were reduced to P69.10
million yesterday from the P1.16

bounced [yesterday] as it reached

oversold levels. Investors took
advantage of beaten-down stocks,
while some of the major companies announced buyback programs to support the share prices.
Four out of six domestic subindices ended in the green, with
financials leading the rally after
gaining 17.14 points or 1.19% to
1,453.43. Property advanced by
28.40 points or 1.11% to 2,573.92;
industrials climbed 64.29 points
or 0.63% to 10,190.28; and services inched up by 6.98 points or
0.50% to 1,390.66.

Philippine Index Charts

TUESDAY, JANUARY 12, 2016

INDUSTRIAL: 10,190.28

FINANCIAL: 1,453.43

17.14
A

HOLDINGS: 6,012.61

64.29
A

0.16
J

PSE TURNOVERS AND AVERAGES

OPEN
HIGH
LOW
FINANCIAL
1,438.51
1,465.53
1,438.51
INDUSTRIAL
10,161.78
10,345.88
10,155.36
HOLDINGS
6,026.61
6,147.10
6,012.61
PROPERTY
2,591.95
2,635.32
2,573.92
SERVICES
1,385.52
1,412.57
1,385.52
MINING
9,202.74
9,433.36
9,189.98
ALL SHARES
3,642.85
3,693.65
3,642.85
PSEI
6,322.87
6,433.75
6,322.87
ADVANCES: 96 DECLINES: 77 UNCHANGED: 45

VOLUME
VALUE (P)
FINANCIAL
12,143,605
668,036,351.02
INDUSTRIAL
68,742,060
815,450,283.03
HOLDINGS
71,274,623 1,095,592,738.20
PROPERTY
151,513,962 1,285,584,504.97
SERVICES
95,644,124
762,693,370.23
MINING
798,347,669
52,750,358.70
SME
1,141,600
12,471,744.00
ETF
66,730
6,879,698.00
GRAND TOTAL 1,198,874,373 4,699,459,048.15

ODD LOTS VOLUME:

ODD LOTS VALUE:

TOTAL FOREIGN BUYING:

TOTAL FOREIGN SELLING:

1,677,018.00
214,085.12

Volume
625,000,000
74,200,000
68,200,000
59,604,000
26,840,000
23,392,000
17,900,000
17,659,300
17,600,000
15,108,500

LEADERS

Stocks
Anglo-Philippine Holdings Corp.
Millenium Global Holdings, Inc.
TKC Steel Corp.
Del Monte Pacific Limited
Boulevard Holdings, Inc.
Vitarich Corp.
AbaCore Capital Holdings, Inc.
2GO Group, Inc.
Paxys, Inc.
Abra Mining and Industrial Corp.

Stocks
Ayala Land, Inc.
SM Prime Holdings, Inc.
Ayala Corp.
Metropolitan Bank and Trust Co.
Megaworld Corp.
Bank of the Philippine Islands
SM Investments Corp.
Intl. Container Terminal Services, Inc.
Globe Telecom, Inc.
Phil. Long Distance Telephone Co.
Close
1.08
0.290
1.00
11.92
0.040
0.60
0.320
6.50
2.65
0.0043

Net
0.180
0.035
0.080
0.920
0.003
0.040
0.020
0.380
0.150
0.0002

%
20.00%
13.73%
8.70%
8.36%
8.11%
7.14%
6.67%
6.21%
6.00%
4.88%

Volume
265,300
8,000
334,000
74,200,000
520,000
176,000
87,500
11,682,000
55,000
29,500

Close
8.70
3.20
1.50
0.010
0.221
1.68
5.20
2.44
2.20
20.00

Net
-1.640
-0.580
-0.250
-0.001
-0.019
-0.130
-0.400
-0.150
-0.100
-0.850

%
-15.86%
-15.34%
-14.29%
-9.09%
-7.92%
-7.18%
-7.14%
-5.79%
-4.35%
-4.08%

Stocks
LBC Express Holdings, Inc.
Easycall Comm. Phils., Inc.
Discovery World Corp.
Manila Mining Corp. B
Phil. Estates Corp.
Leisure and Resorts World Corp.-Warrants
F and J Prince Holdings Corp. A
SSI Group, Inc.
AG Finance, Inc.
Philweb Corp.

PLDT
Manulife Financial Corp.
Sun Life Financial, Inc.

DIVIDEND UPDATE
Issue
Manila Broadcasting Co.
Far Eastern University
Puregold Price Club, Inc.

Volume
66,751
2,702,327
396,256

Stock

Value
429,754,000
350,365,000
268,863,000
217,606,000
214,901,000
208,198,000
150,981,000
143,784,000
143,734,000
137,667,000

Volume
14,000
320,000
59,000
33,900
17,600,000
38,000
4,690,000
22,900
24,000
625,000,000

LAGGARDS

PHL ABROAD JANUARY 11, 2016

2,342,125,147.62
2,411,226,568.07

TOP 10 IN VALUE

TOP 10 IN VOLUME

Stocks
Abra Mining and Industrial Corp.
Manila Mining Corp. B
Manila Mining Corp. A
Megaworld Corp.
Premium Leisure Corp.
Filinvest Land, Inc.
Pacifica, Inc.
SM Prime Holdings, Inc.
Boulevard Holdings, Inc.
D and L Industries, Inc.

High
$41.29
$13.60
$28.71

Cash
P0.0625
P12.00
P0.30

Low
$40.30
$13.11
$27.59

Ex-date
16-Dec.-15
22-Dec.-15
05-Jan.-16

Close
$41.29
$13.31
$27.97

Record
21-Dec.-15
29-Dec.-15
08-Jan.-16

Source: PSE
Change
$0.80
($0.12)
($0.33)

Payable
15-Jan.-16
15-Jan.-16
18-Jan.-16

SCHEDULE OF MEETINGS
Date Company
JANUARY
29
Primex Corp. (Annual)

FEBRUARY
02
Victorias Milling Co., Inc. (Annual)

Time & Place

3:00 p.m. Pasig Room, Valle Verde Country Club,

Capt. Henry Javier St., Pasig City

8:00 a.m. Victorias Golf & Country Club,

Victorias City, Negros Occidental
NOTE: These schedules are subject to change without any further notice.

MUTUAL FUNDS
TUESDAY, JANUARY 12, 2016

NAV
One Year Three Year Five Year
per share Return
Return* Return*
%
%
%

STOCK FUNDS
Primarily invested in Peso securities
ALFM Growth Fund, Inc. *
226.52
ATRKE Alpha Opportunity Fund, Inc. *
1.044
ATRKE Equity Opportunity Fund, Inc. *
3.3092
First Metro Save & Learn Equity Fund, Inc. *
4.7707
PAMI Equity Index Fund, Inc.* ********
42.5968
Philam Strategic Growth Fund, Inc. *
466.6
Philequity Dividend Yield Fund., Inc. *
1.0802
Philequity Fund, Inc. *
30.8967
Philequity PSE Index Fund, Inc. *
4.189
Philippine Stock Index Fund Corp. *
701.18
Soldivo Strategic Growth Fund, Inc. *******
0.7887
Sun Life Prosperity Phil. Equity Fund, Inc. *
3.4588
Sun Life Prosperity Phil.Stock Index Fund, Inc.* *******
0.8115
United Fund, Inc.*
2.8424
Exchange Traded Fund
First Metro Phil. Equity Exchange Traded Fund, Inc. * *** 102.7543
Primarily invested in foreign currency securities
ATR KimEng Asia Plus Recovery Fund, Inc. **
$0.8273
BALANCED FUNDS
Primarily invested in Peso securities
ATRAM Dynamic Allocation Fund, Inc.* ****
1.6444
ATRKE Phil. Balanced Fund, Inc. *
2.0219
Bahay Pari Solidaritas Fund, Inc.*
1.9099
First Metro Save & Learn Balanced Fund, Inc. *
2.4875
NCM Mutual Funds of the Phils., Inc.* *****
1.7118
One Wealthy Nation Fund, Inc.*
0.9263
PAMI Horizon Fund, Inc. *
3.4052
Philam Fund, Inc. *
15.2831
Sun Life of Canada Prosperity Balanced Fund, Inc.*
3.4091
Sun Life Prosperity Dynamic Fund, Inc. *
0.8747
Primarily invested in foreign currency securities
Cocolife Dollar Fund Builder, Inc. *
$0.03539
PAMI Asia Balanced Fund, Inc. *
$0.8455
Sun Life Prosperity Dollar Advantage Fund, Inc. *
$2.9946
BOND FUNDS
Primarily invested in Peso securities
ALFM Peso Bond Fund, Inc. *
322.8
ATRAM Corporate Bond Fund, Inc.*
1.9208
Cocolife Fixed Income Fund, Inc. *
2.5434
Ekklesia Mutual Fund, Inc. *
2.0467
First Metro Save & Learn Fixed Income Fund, Inc. *
2.2095
Grepalife Bond Fund Corp. *
1.3375
Grepalife Fixed Income Fund Corp. * *****
P1.5963
Philam Bond Fund, Inc. *
3.9953
Philequity Peso Bond Fund, Inc. *
3.4543
Soldivo Bond Fund, Inc. *******
0.9176
Sun Life Prosperity Bond Fund, Inc. *
2.706
Sun Life Prosperity GS Fund, Inc. *
1.5258
Primarily invested in foreign currency securities
ALFM Dollar Bond Fund, Inc. *
$420
ALFM Euro Bond Fund, Inc. *
206.19
ATR KimEng Total Return Bond Fund, Inc. **
$1.0954
First Metro Save and Learn Dollar Bond Fund, Inc. * ****** $0.0243
Grepalife Dollar Bond Fund Corp. *
$1.7195
MAA Privilege Dollar Fixed Income Fund, Inc.
N.S.
MAA Privilege Euro Fixed Income Fund, Inc.
N.S.
PAMI Global Bond Fund, Inc. *
$1.0584
Philam Dollar Bond Fund, Inc. *
$2.1238
Philequity Dollar Income Fund, Inc. *
$0.0554997
Sun Life Prosperity Dollar Abundance Fund, Inc. *
$2.855
MONEY MARKET FUNDS
Primarily invested in Peso securities
ALFM Money Market Fund, Inc. *
114.27
Philam Managed Income Fund, Inc. *
1.1553
Sun Life Prosperity Money Market Fund, Inc. *
1.1403

PROPERTY: 2,573.92

Y-T-D
Return
%

-14.99%
-36.66%
-25.39%
-15.27%
n.a.
-15.85%
-15.05%
-17.72%
-14.89%
-15.01%
-17.57%
-16.53%
n.a.
-14.61%

-0.04%
-5.26%
-2.94%
-1.18%
n.a.
-3.6%
n.a.
1.43%
2.23%
1.8%
n.a.
-2.23%
n.a.
-5.19%

4.93%
n.a.
4.06%
6.93%
n.a.
5.08%
n.a.
9.36%
9.72%
9.76%
n.a.
6.61%
n.a.
0.17%

-8.3%
-10.74%
-9.67%
-9.62%
-9.04%
-7.91%
-8.19%
-8.91%
-9.49%
-9.93%
-8.01%
-9.95%
-9.43%
-9.73%

-14.08%

n.a.

n.a.

-9.9%

-16.56%

-6.05%

-6.03%

-7.45%

-15.5%
-14.59%
-7.06%
-11.71%
-9.36%
-11.6%
-10.44%
-10.46%
-10.28%
-13.81%

0%
0.57%
1.55%
-2.97%
-2.78%
n.a.
-3.46%
-3.07%
-0.79%
n.a.

6.88%
5%
6.61%
5.13%
4.17%
n.a.
3.85%
4.59%
6.06%
n.a.

-5.61%
-5.39%
-4.62%
-7.5%
-4.44%
-7.5%
-4.53%
-4.5%
-5.29%
-5.8%

2.05%
-13.84%
-5.7%

1.15%
-6.9%
0.92%

3.57%
-3.52%
2.15%

0%
-4.58%
-3.86%

0.88%
-3.44%
4.95%
0.98%
1.06%
-2.29%
-2.49%
-0.59%
-2.22%
-4.7%
-0.38%
-1.21%

2.43%
3.05%
5.21%
3.31%
5.94%
0.07%
0.15%
2.29%
4.34%
n.a.
1.95%
0.81%

4.06%
4.1%
6.05%
5.59%
8.48%
3.22%
2.86%
5.03%
5.99%
n.a.
3.94%
3.04%

0.02%
0.16%
0.06%
0.4%
0.23%
0.2%
0.01%
0.36%
-0.7%
0.05%
0.11%
0.15%

2.74%
0.05%
2.62%
0.83%
0.84%
N.S.
N.S.
-6.04%
0.96%
1.33%
2.25%

1.75%
1.85%
0.86%
n.a.
1.01%
N.S.
N.S.
-4.5%
0.62%
1.01%
-1.04%

3.83%
2.87%
1.77%
n.a.
4.52%
N.S.
N.S.
-1.73%
3.18%
3.66%
2.39%

0.4%
0.07%
0.15%
0%
0.53%
N.S.
N.S.
0.85%
0.74%
0.07%
0.64%

1.12%
0.03%
1.32%

1.35%
0.29%
0.27%

2.08%
0.88%
0.31%

0.04%
-0.16%
0.06%

* - NAVPS as of the previous banking day. ** - NAVPS as of 2 banking days ago

*** - Listed in the PSE.***** - Manage by BDO Private Bank starting September 1, 2015 (Formerly Manage by PAMI).
****** - Inception date is October 8, 2014. **** - Formerly, Optima Balanced Fund, Inc.
******* - Launch date is May 5, 2015. ******** - Launch date is June 16, 2015

SERVICES: 1,390.66

28.40
J

MINING & OIL: 9,189.98

ALL SHARES: 3,645.46

59.44

17.49

6.98

PSEi: 6,330.55

42.29
J

22,276 AUB
349,591 BDO
326,507 BPI
67,476 CHIB
25,740 EW
222,453 MBT
8,476 PBB
10,574 PBC
62,457 PNB
23,761 PSB
44,937 RCB
80,779 SECB
59,902 UBP

Banks
Asia United Bank Corp.
Banco de Oro Unibank, Inc.
Bank of the Phil. Islands
China Banking Corp.
East West Banking Corp.
MetroBank and Trust Co.
Philippine Business Bank
Philippine Bank of Comm.
Philippine National Bank
Philippine Savings Bank
Rizal Commercial Banking
Security Bank Corp.
Union Bank of the Phils.

Volume

Open

High

Low

Close

Prev Net Foreign

Close Trade (peso)
Buy(sell)

52Wk 52Wk MktCap Stock Stocks

High
Low (Pmil) Code

1.78
10.4
1.55
5.88
0.4
8.79
31.9
0.55
1.87
3.4
0.98
22.95
1.5
8.59

0.88
6.05
1.11
3.52
0.221
4.78
23.45
0.37
1.35
3.02
0.68
17.44
0.65
4.55

67.8
7.57
0.71

48.3
5.95
0.48

2,702
4.89
3,200

1,681
1.91
1,920

7.33
0.41
1.9
4.1
0.39
1.03
23.1
4.8

4
0.122
1.2
1.9
0.25
0.41
12.1
1.2

11.32
14.48
98.4
117.8
2.48
5.28
1.66

3.82
10.9
76
58
1.8
4.33
1.14

1.26
0.12
2
0.4

1.02
0.037
1.5
0.165

386
480
939
787

12
1,095.00
0.74

9.5
886
0.4

3,538
15,736
3,962

43.23
93
80.05
36.4
17.16
69
14.32
22
49.5
85
29.25
120
49.8

15,900
728,080
2,506,170
50,800
75,500
3,107,150
2,720,600
983,200
10,800
210
234,700
690,440
12,870

45.75
95.05
81.25
36.5
17.32
69.3
15.8
22
50
96
32.5
138
56.9

45.9
98.4
83.8
36.6
17.32
71.3
15.82
22
50.5
98.95
32.5
138
56.9

45
95.05
81.2
36.4
17.12
69.3
15.8
22
50
96
31.9
133.8
56.5

45.9
95.9
83.1
36.4
17.16
69.95
15.8
22
50
98.9
32.1
134
56.6

45.8
95
81.25
36.5
17.2
69
16
22
50
95
31.9
133
56.55

285,475
3,089,316
101,599,603
(10,920)
(188,900)
8,759,455
35,200
7,011,085
45,987,522
-

8.7
3.3
16.98
9.8
850
1.21
361.2
1,560
3.2

Other Financial Institutions

2.2
576 AGF AG Finance, Inc.
55,000
1.12
1,712 BKR Bright Kindle Res & Inves., Inc. 75,000
14.2
7,049 COL COL Finl. Group, Inc.
11,700
6.12
351 FFI Filipino Fund, Inc.
20,300
630 1,242,302 MFC Manulife Financial Corp.
20
0.9
1,911 NRCP National Reinsurance Corp.
835,000
275
20,180 PSE The Phil. Stock Exchange, Inc.
2,260
1,000 811,337 SLF Sun Life Financial, Inc.
135
1.43
6,719 V Vantage Equities, Inc.
7,000

2.2
1.14
14.2
7
630
0.91
275
1,325
1.55

2.2
1.14
14.88
7
630
0.92
278.6
1,325
1.6

2.17
1.12
14
7
630
0.9
275
1,325
1.55

2.2
1.12
14.84
7
630
0.9
275
1,325
1.6

2.3
1.15
14.2
6.82
630
0.92
275
1,340
1.55

(12,600)
(151,250)
(178,875)
(4,650)

2.27
46.5
8.96
31.2
106.2
343.8
33
10.62
4.16
4.56
2.47
25.5

1.25
39.1
5.2
20.15
60.3
260.4
20
5.85
3.15
3.3
1.66
19.4

Electricity, Energy, Power & Water

7,864 ACR Alsons Cons. Res., Inc.
3,665,000
293,976 AP Aboitiz Power Corp.
1,483,200
104,014 EDC Energy Devt. (EDC) Corp.
8,703,900
73,768 FGEN First Gen Corp.
3,266,700
33,394 FPH First Phil. Hldgs. Corp.
662,740
343,540 MER Manila Electric Co.
213,640
49,295 MWC Manila Water Co.
3,280,500
54,844 PCOR Petron Corp.
2,998,100
5,258 PNX Phoenix Petroleum Phils.
134,000
6,211 SPC SPC Power Corp.
1,000
9,730 TA Trans-Asia Oil and Energy
574,000
23,028 VVT Vivant Corp.
500

1.3
39.5
5.54
20.4
60.7
301.2
24.05
5.85
3.55
4.15
2.08
22.5

1.3
40.2
5.7
20.8
63
306.8
24.65
6
3.79
4.15
2.08
22.5

1.24
39.5
5.52
20.1
59.7
301.2
23.95
5.69
3.55
4.15
2
22.5

1.25
39.95
5.55
20.15
60.3
304.8
24
5.85
3.68
4.15
2
22.5

1.29
39.4
5.54
20.4
61.25
301
24
5.85
3.73
4.17
2.02
22.5

20,420,125
2,722,112
(5,310,730)
(10,857,514)
20,881,104
(19,922,550)
2,258,947
400,000
11,250

5.15
100
20.55
15.09
11.43
11.9
1.28
15.7
235.8
37.92
60
34.4
210
4.94
6
7.08
0.203
230
0.86
4.8

1.25
71.55
15
9.49
7.04
6.99
0.7
10.52
180
16.33
38.5
16.6
115
3.19
3.87
3.8
0.129
173.6
0.56
4.2

2,437
2,684
33,481
23,163
50,286
134,763
1,850
3,313
212,864
4,035
41,133
18,046
20,000
11,783
13,547
5,067
249
381,981
1,672
13,255

Food, Beverage & Tobacco

Agrinurture, Inc.
227,000
Central Azucarera De Tarlac
100
Century Pacific Food, Inc.
619,000
Del Monte Pacific Ltd.
33,900
D and L Industries, Inc.
15,108,500
Emperador, Inc.
938,500
Alliance Select Foods Intl., Inc. 39,000
Ginebra San Miguel, Inc.
100
Jollibee Foods Corp.
331,720
Liberty Flour Mills, Inc.
200
Macay Hldgs., Inc.
3,000
Maxs Group,Inc.
305,600
San Miguel Pure Foods Co., Inc. 80,810
Pepsi-Cola Products Phils.
2,392,000
RFM Corp.
421,000
Roxas Hldgs., Inc.
3,000
Swift Foods, Inc.
870,000
Universal Robina Corp.
617,930
Vitarich Corp.
38,000
Victorias Milling Co.
58,000

4
95
15.48
11
7.3
8.5
0.8
11.8
195
26.9
38.45
16.82
120
3.23
3.9
4.4
0.139
175
0.61
4.55

4.16
95
15.52
12
7.78
8.5
0.8
11.8
202.2
26.9
38.5
17.02
120.5
3.4
3.9
4.4
0.139
178.9
0.61
4.55

3.92
95
14.98
11
7.04
8.27
0.74
11.8
194.2
26.9
38.45
16.48
119
3.19
3.87
4.4
0.136
175
0.56
4.55

3.92
95
15
11.92
7.04
8.36
0.74
11.8
199
26.9
38.5
16.6
120
3.19
3.87
4.4
0.137
175.1
0.6
4.55

4
99
15.48
11
7.31
8.42
0.72
11.5
194
26.9
38.95
16.76
116
3.24
3.9
4.4
0.135
173.6
0.56
4.55

(20,800)
(189,788)
230,874
(18,291,569)
5,543,007
13,173,589
719,914
(8,090,054)
(278,820)
1,459,680
11,908,073
236,600

12.9
2.34
11.16
15.18
25.6
8.6
2.07
1.7

8.05
1.19
4.54
12
8.7
5.21
0.84
0.98

Construction, Infrastructure & Allied Services

2,016 ABG Asiabest Group Intl., Inc.
300
10.36
2,025 DAVIN Da Vinci Capital Hldgs., Inc. 2,228,000
1.8
5,544 EEI EEI Corp.
4,524,900
5.29
89,684 HLCM Holcim Philippines, Inc.
100,000
13.9
12,405 LBC LBC Express Hldgs., Inc.
265,300
10.5
13,197 MWIDE Megawide Const. Corp.
1,691,000
5.5
940 T
TKC Metal Corp.
59,000
0.94
1,421 VUL Vulcan Industrial Corp.
1,142,000
1.02

10.36
1.87
5.36
13.9
10.5
5.51
1.02
1.02

10.08
1.8
5.22
13.9
7.5
5.49
0.92
0.98

10.08
1.8
5.35
13.9
8.7
5.5
1
0.98

10.18
1.8
5.29
13.8
10.34
5.5
0.92
1.01

507,820
7,477,092
1,390,000
(296,580)
(159,334)
(6,930)
-

3.2
2.69
4.07

1.53
1.3
1.4

Chemicals
1,388 CROWN Crown Asia Chemicals Corp. 6,540,000
6,826 EURO Euro-Med Lab. Phil., Inc.
2,000
4,380 PPC Pryce Corp.
131,000

2.2
1.66
2.16

2.25
1.66
2.2

2.1
1.66
2.16

2.2
1.66
2.19

2.1
1.66
2.2

13,746,000
-

65.8
7
3.82
2.96
32.09

40
5.1
0.43
1.39
16.4

Electrical Components & Equipment

14,247 CIC Concepcion Indl. Corp.
130,400
9,470 IMI Integ. Micro-Electronics
182,700
1,884 ION Ionics, Inc.
3,175,000
3,139 PSPC Phoenix Semicon. Phils. Corp. 319,000
7,451 TECH Cirtek Hldgs. Phils. Corp.
358,100

42
5.3
2.15
1.37
17.8

42
5.32
2.3
1.5
18.2

41
5.1
2.15
1.37
17.5

41.95
5.1
2.2
1.45
17.78

42
5.3
2.14
1.39
17.8

(410,005)
6,600
9,010

2.65

1.56

639,000

2.48

2.5

2.46

2.5

2.5

0.49
821
59
27.3
7.24
1.62
0.34
9.72
16
4.85
6.6
0.42
1,446
6.88
9.96
75
7.2
0.89
9.18
16.84
5.44
0.057
2.35
1.68
1.31
970
80.75
124
0.62
0.28
0.37

Holding Firms
0.3
1,020 ABA AbaCore Capital Holdings,Inc. 4,690,000
660 408,943 AC Ayala Corp.
400,510
51.95 305,485 AEV Aboitiz Equity Ventures
1,513,960
14.6 151,788 AGI Alliance Global Group, Inc.
6,929,700
6.2
15,500 ANS A. Soriano Corp.
500,800
0.9
3,244 APO Anglo-Phil. Hldgs. Corp.
14,000
0.205
759 ATN ATN Hldgs., Inc. A
420,000
6.5 56,058 COSCO Cosco Capital, Inc.
9,007,200
10.7 155,878 DMC DMCI Hldgs., Inc.
3,743,500
3.6
39,133 FDC Filinvest Devt. Corp.
346,000
2.76
1,522 FJP F&J Prince Hldgs. Corp.A
87,500
0.176
368 FPI Forum Pacific, Inc.
40,000
1,097 224,324 GTCAP GT Capital Hldgs., Inc.
58,535
5.18
3,326 HI House of Investments, Inc.
100
4.9
6,776 IPM IPM Hldgs., Inc.
1,700,000
62.1 459,496 JGS JG Summit Hldgs., Inc.
1,652,160
4.8
108 KPHB Keppel Phils. Hldg., Inc. B
5,000
0.54
459 LIHC Lodestar Invest. Hldg. Corp. A 28,000
5.14
26,673 LPZ Lopez Hldgs. Corp.
1,637,400
9.89 148,469 LTG LT Group,Inc.
2,462,100
4.21 143,331 MPI Metro Pac. Inv. Corp.
14,662,200
0.028
1,160 PA Pacifica, Inc.
17,900,000
0.65
4,048 POPI Prime Orion Phils., Inc.
156,000
1.02
720 PRIM Prime Media Hldgs., Inc.
60,000
1.1
2,004 SGI Solid Group, Inc.
16,000
769.5 622,368 SM SM Investments Corp.
194,280
44 123,683 SMC San Miguel Corp.
599,200
62.9 20,939 TFHI Top Frontier Inves. Hldgs., Inc. 54,990
0.25
405 UNI Unioil Res. And Hldgs. Co.
330,000
0.162
589 WIN Wellex Industries, Inc.
1,810,000
0.21
643 ZHI Zeus Hldgs., Inc.
100,000

0.33
670
55
14.62
6.25
0.99
0.206
7.6
11.72
4.2
5.6
0.2
1,292
5.4
9.77
65.5
4.99
0.6
6.09
13.7
5.06
0.029
1.71
1.03
1.1
770
51.85
67.45
0.26
0.186
0.235

0.33
693
55.65
15.34
6.25
1.08
0.206
7.63
12.2
4.2
5.6
0.2
1,325
5.4
9.82
66.45
4.99
0.64
6.09
14
5.19
0.029
1.75
1.03
1.1
789
52
67.45
0.26
0.186
0.235

0.3
660
55
14.62
6.2
0.99
0.205
7.55
11.72
4.14
5.2
0.2
1,287
5.4
9.77
64.15
4.99
0.6
5.8
13.7
5.06
0.028
1.7
1.03
1.09
770
51.5
62.9
0.26
0.18
0.235

0.32
660
55
14.78
6.2
1.08
0.205
7.59
11.74
4.2
5.2
0.2
1,287
5.4
9.82
64.15
4.99
0.62
5.8
13.72
5.14
0.029
1.71
1.03
1.1
775
52
62.9
0.26
0.18
0.235

0.3
665
54.5
14.6
6.2
0.9
0.21
7.62
11.72
4.2
5.6
0.198
1,292
5.18
9.8
65.5
4.99
0.6
5.8
13.74
5.06
0.029
1.71
1.02
1.1
769.5
52
63.8
0.25
0.186
0.231

11,399,250
(6,705,541)
11,866,684
557,044
1,941,508
1,304,820
(24,992,250)
(27,493,292)
(1,681,364)
6,257,332
24,368,578
31,282,240
(10,230,367)
(2,526,256)
75,600
-

0.28
10.94
41
1.45
4.72
1.15
1.19
0.164
5.43
1.03
25.35
0.96
0.234
2.09

Property
0.18
1,064 ALCO Arthaland Corp.
5.72
6,500 ALHI Anchor Land Hldgs., Inc.
30 440,869 ALI Ayala Land, Inc.
1.03
1,748 ARA Araneta Properties, Inc.
2.47
26,187 BEL Belle Corp.
0.55
1,074 BRN A Brown Co., Inc.
0.95
3,429 CDC Cityland Devt. Corp.
0.1
1,523 CEI Crown Equities, Inc.
4.65
9,140 CHI Cebu Hldgs., Inc.
0.47
5,510 CPG Century Prop. Group, Inc.
7.26
47,159 DD DoubleDragon Prop. Corp.
0.67
9,980 ELI Empire East Land, Inc.
0.137
685 EVER Ever Gotesco Res.
1.56
38,315 FLI Filinvest Land, Inc.

0.2
6
30.5
1.12
2.47
0.61
0.96
0.11
4.75
0.49
20.3
0.67
0.137
1.6

0.201
7.28
31.2
1.12
2.54
0.65
0.96
0.116
4.8
0.5
21.55
0.69
0.137
1.63

0.2
6
30
1.12
2.46
0.61
0.96
0.11
4.75
0.47
20.3
0.67
0.137
1.56

0.2
6.25
30
1.12
2.49
0.62
0.96
0.112
4.76
0.47
21.15
0.68
0.137
1.58

0.2
6
30
1.12
2.47
0.61
0.96
0.11
4.75
0.48
20.3
0.67
0.139
1.56

18,797
32,679,800
792,760
(191,380)
(98,000)
5,290,700
1,406,800
(11,291,720)

1,527

SPH

Other Industrials
Splash Corp.

1,480,000
6,400
14,117,500
3,000
2,147,000
522,000
4,000,000
4,250,000
47,000
4,110,000
1,576,600
2,145,000
40,000
23,392,000

TUESDAY, JANUARY 12, 2016

49.87
123.7
107
44.58
26.13
99.8
19.2
33.5
87
108.1
48.5
177
71.95

ANI
CAT
CNPF
DMPL
DNL
EMP
FOOD
GSMI
JFC
LFM
MACAY
MAXS
PF
PIP
RFM
ROX
SFI
URC
VITA
VMC

PROVIDED BY TECHNISTOCK

PHILIPPINE STOCK EXCHANGE

52Wk 52Wk MktCap Stock Stocks
High
Low (Pmil) Code

Volume

Open

High

Low

Close

Prev Net Foreign

Close Trade (peso)
Buy(sell)

Global-Estate Resorts, Inc.

8990 Hldgs., Inc.
IRC Properties, Inc.
Megaworld Corp.
Phil. Estate
Primex Corp.
Robinsons Land Corp.
Philippine Realty & Hldgs.
Rockwell Land Corp.
Shang Properties, Inc.
Sta. Lucia Land, Inc.
SM Prime Hldgs., Inc.
Suntrust Home Dev., Inc.
Vista Land & Lifescapes

3,286,000
100,500
15,000
59,604,000
520,000
1,900
3,820,200
10,000
289,000
2,000
422,000
17,659,300
543,000
4,378,000

0.9
6.9
1.11
3.64
0.241
8.48
23.5
0.39
1.35
3.15
0.75
19.74
0.74
4.62

0.97
6.9
1.13
3.68
0.241
8.48
24.9
0.39
1.39
3.15
0.75
20.1
0.77
4.72

0.88
6.71
1.1
3.57
0.221
8.45
23.3
0.39
1.3
3.15
0.74
19.62
0.7
4.52

0.88
6.9
1.13
3.58
0.221
8.45
23.45
0.39
1.39
3.15
0.74
19.82
0.76
4.55

0.9
6.85
1.12
3.52
0.24
8.47
23.5
0.39
1.35
3.18
0.74
19.2
0.74
4.62

496,218
23,791,700
(62,660)
(11,651,805)
(3,000)
(107,159,188)
(6,043,050)

Media
51,048 ABS ABS-CBN Corp.
21,746 GMA7 GMA Network, Inc.
1,649 MB Manila Bulletin Pub. Corp.

18,010
42,900
10,000

59.9
6.46
0.49

60.75
6.55
0.49

59.8
6.45
0.49

60
6.47
0.49

59.9
6.46
0.48

85,180
676,000
70,920

1,700
4.33
1,921

1,748
4.59
1,971

1,681
4.3
1,921

1,681
4.42
1,930

1,686
4.48
1,920

(70,898,195)
(92,160)
(43,955,950)

Information Technology
1,460 DFNN DFNN, Inc.
362,200
611 IS Island Info. and Tech., Inc.
550,000
938 ISM ISM Comm. Corp.
722,000
322 JAS Jackstones, Inc.
2,000
619 MG Millennium Global Hldgs., Inc. 320,000
986 NOW Now Corp.
1,857,000
28,675 WEB Philweb Corp.
29,500
973 YEHEY Yehey! Corp.
131,000

5.51
0.125
1.3
1.92
0.28
0.64
20.85
3.65

5.89
0.13
1.34
1.92
0.29
0.66
20.95
3.65

5.51
0.125
1.3
1.92
0.28
0.64
19.96
3.5

5.85
0.125
1.31
1.92
0.29
0.65
20
3.5

5.61
0.122
1.34
2
0.26
0.63
20.85
3.59

(25,190)
(171,596)
-

Transportation Services
2Go Group, Inc.
22,900
Asian Terminals, Inc.
100
Cebu Air, Inc.
528,710
Intl. Cont. Terml. Serv., Inc. 2,444,930
Macroasia Corp.
58,000
PAL Hldgs., Inc.
8,000
Harbor Star Shipping Serv., Inc. 100,000

6.08
10.98
76
58.1
1.9
4.39
1.15

6.7
10.98
78.85
60
2.24
4.39
1.15

6.08
10.98
75.9
58.1
1.9
4.38
1.14

6.5
10.98
76.5
58.8
2.24
4.38
1.14

6.12
10.98
76
58
2.33
4.4
1.14

3,015,405
(16,173,974)
57,300

ACE
BHI
DWC
WPI

Hotel & Leisure

Acesite (Phils.) Hotel Corp.
Boulevard Hldgs., Inc.
Discovery WorldCorp.
Waterfront Philippines, Inc.

31,000
17,600,000
334,000
530,000

1.13
0.037
1.51
0.32

1.13
0.04
1.53
0.32

1.12
0.037
1.5
0.3

1.12
0.04
1.5
0.32

1.12
0.037
1.75
0.31

(148,050)

CEU
FEU
STI

Education
Centro Escolar University
Far Eastern University
STI Educ. Systems Hldgs., Inc.

3,600
530
840,000

9.5
955
0.4

9.56
955
0.4

9.5
955
0.39

9.5
955
0.4

9.57
955
0.4

59,800

3.44
3.51
0.0085 0.0084
6.8
6.81
1.55
1.59
1.98
1.98
0.45
0.45
3.52
3.55

4,889,390
(491,737)
(2,736,610)
(526,850)
(420,070)

9,668
38,074
1,274
115,417
319
2,732
96,000
1,895
8,502
15,007
6,620
572,386
1,710
56,907

223,140
5,718
416,988

GERI
HOUSE
IRC
MEG
PHES
PRMX
RLC
RLT
ROCK
SHNG
SLI
SMPH
SUN
VLL

GLO
LIB
TEL

15,900 2GO
21,960 ATI
46,355 CEB
119,641 ICT
2,763 MAC
108,784 PAL
690 TUGS

Telecommunications
Globe Telecom, Inc.
Liberty Telecoms Hldgs.
Phil. Long Dis. Tel. Co.

13
3.44
0.016 0.0053
11.5
6.8
12.86
1.55
2.18
1.85
1.99
0.45
7.57
3.19

Casinos & Gaming

37,894 BLOOM Bloomberry Resorts Corp.
6,261,000
255 EG IP E-Game Vent., Inc.
3,000,000
8,159 LR Leisure and Resorts Corp.
1,353,300
8,747 MCP Melco Crown Resorts Corp. 5,283,000
1,972 MJC Manila Jockey Club, Inc.
5,000
14,074 PLC Premium Leisure Corp.
26,840,000
55,461 RWM Travellers Intl. Hotel Grp., Inc. 485,000

5.06
4.01
43
89
140.6
11.3

3.14
3.6
30
61.8
83.5
2.44

1,133
12,346
85,035
90,025
46,302
8,083

CAL
MRSGI
PGOLD
RRHI
SEVN
SSI

Retail
Calata Corp.
21,000
Metro Retail Stores Group, Inc. 2,541,000
Puregold Price Club, Inc
1,929,200
Robinsons Retail Hldgs., Inc.
1,723,110
Philippine Seven Corp.
80
SSI Group, Inc.
11,682,000

3.1
3.54
30.5
63.1
101
2.65

3.15
3.62
32
66.2
101
2.91

3.1
3.54
30.5
63.1
101
2.41

3.15
3.6
30.75
65
101
2.44

3.15
3.6
30.5
63.1
100
2.59

182,620
29,506,410
(19,189,478)
(1,404,610)

0.83
3.86
3.78
0.73
7.23

0.41
2.72
2.5
0.43
4.12

3,077
480
3,044
856
5,688

APC
ECP
PAX
PHA
SBS

Other Services
APC Group, Inc.
260,000
Easycall Comm. Phils., Inc.
8,000
Paxys, Inc.
24,000
Premiere Horizon Alliance Corp. 2,850,000
SBS Phil. Corp.
1,657,000

0.41
2.86
2.75
0.47
4.59

0.41
3.2
2.75
0.47
5.15

0.4
2.86
2.65
0.4
4.59

0.41
3.2
2.65
0.43
4.74

0.41
3.78
2.5
0.44
4.6

(21,600)
987,400

0.0043 0.0041
3.93
3.9
0.5
0.49
0.55
0.55
5.92
5.92
0.5
0.48
0.26
0.27
0.159 0.163
0.18 0.186
0.01
0.01
0.01 0.011
1.58
1.59
2.4
2.37
4.38
4.46
1.06
1.07
4.15
4.3
125.6 125.5

4,300
(7,850)
(327,700)
(182,850)
(2,590,440)
(416,910)
(6,479,200)

0.007 0.0038
10.22
3.9
0.97
0.49
1.14
0.55
9.26
5.62
3.47
0.48
0.47
0.26
0.3 0.159
0.32
0.18
0.018 0.0097
0.019
0.01
6.45
1.58
4.17
2.35
16.02
4.38
2.57
1.06
9.4
4.15
168.4
111.1
0.022
5.3
12.26

0.009
1.2
1.93

532
549
122
128
535
1.14
115.9
1,064
104
106.8
85.6
89.05
85
80.85

500
500
103
106.5
497
1.02
102.5
1,005
103
105.7
76
78.6
77
78

68
7.4

48
5.92

4.7

1.68

4.49
4.22
9.7
17.24

2.64
2.59
2.54
8.4

132

102.9

3.5
3.61
3.44
0.0081 0.0085 0.0081
6.95
7
6.78
1.59
1.67
1.55
1.98
1.98
1.98
0.45
0.47
0.45
3.51
3.6
3.51

Mining
857 AR Abra Mng. and Indl. Corp. 625,000,000 0.0043 0.0044 0.0041
8,202 AT Atlas Cons. Mng. & Devt.
385,000
3.9
3.93
3.9
2,000 COAL Coal Asia Holdings, Inc.
20,000
0.49
0.5
0.49
1,551 CPM Century Peak Metals Hldgs.
500,000
0.55
0.55
0.55
468 DIZ Dizon Copper Silver Mines
500,200
6
6.08
5.92
8,734 FNI Global Ferronickel Hldgs., Inc. 5,280,000
0.48
0.5
0.46
910 GEO GEOGRACE Res. Phils., Inc.
70,000
0.27
0.27
0.26
4,900 LC Lepanto Cons. Mng. A
5,060,000
0.163
0.165 0.159
3,698 LCB Lepanto Cons. Mng. B
10,000
0.18
0.18
0.18
1,558 MA Manila Mining Corp. A
68,200,000
0.01
0.01 0.0099
1,038 MAB Manila Mining Corp. B
74,200,000
0.011
0.011
0.01
2,878 MARC Marcventures Hldgs., Inc.
406,000
1.58
1.59
1.57
2,424 NI Nihao Min. Resources
9,000
2.4
2.75
2.4
33,275 NIKL Nickel Asia Corp.
4,866,000
4.44
4.61
4.3
3,051 ORE Oriental Peninsula Res.
804,000
1.06
1.2
1.05
20,503 PX Philex Mining Corp.
646,000
4.3
4.3
4.13
134,235 SCC Semirara Mng. and Power Corp. 109,500
124.3
130 124.3
Oil
1,919 OV The Philodrill Corp.
10,900,000
2,057 PXP Philex Petroleum Corp.
620,000
488 TAPET Trans-Asia Petroleum Corp.
10,000

0.011
1.22
1.93

0.011
1.27
1.95

0.01
1.2
1.93

0.01
1.21
1.95

0.01
1.22
1.93

Preferred
Ayala Corp. Class B series 1 Pref. 7,000
Ayala Corp. Class B series 2 Pref. 200
First Gen Corp. Pref. F
120
First Gen Corp. Pref. G
100
Globe Telecom, Inc. - Perp. Pref.
50
Leisure & Resorts World-Pref.
1,000
Megawide Const. Corp.-Perp. Pref. 44,830
San Miguel Purefoods Perp. Pref. 2 45
Phoenix Petroleum-Non-Voting 3A 5,410
Phoenix Petroleum-Non-Voting 3B 60
San Miguel Corp. Series 2-B Pref. 3,080
San Miguel Corp. Series 2-C Pref. 32,600
San Miguel Corp. Series 2-D Pref. 3,850
San Miguel Corp. Series 2-F Pref. 100,500

525
530
104.9
109
534
1.07
109
1,024
104
106.8
80.9
82.5
78.2
79.6

525
530
104.9
109
534
1.07
109
1,024
104
106.8
80.9
83
78.2
79.7

525
530
104.9
109
534
1.07
109
1,024
104
106.8
80.9
82.5
78.2
79.15

525
530
104.9
109
534
1.07
109
1,024
104
106.8
80.9
82.55
78.2
79.6

516
515
103
108
528
1.1
109
1,020
103.7
106.8
80
82.5
78.25
79.7

(520,000)
-

Phil. Deposit Receipts

19,446 ABSP ABS-CBN Hldgs. Corp. PDR
71,100
5,417 GMAP GMA Hldgs., Inc. PDR
1,214,800

62
6.39

62
6.5

59
6.39

59
6.4

60
6.4

(1,212,410)
(462,286)

Warrants
LRW Leisure & Resorts World-Wrnts. 176,000

1.81

1.85

1.68

1.68

1.81

Small and Medium Enterprises

981 ALT Alterra Capital Partners, Inc.
95,000
583 IDC Italpinas Devt. Corp.
183,000
532 MFIN Makati Finance Corp.
5,000
23,082
858,600
X Xurpas, Inc.

3.14
2.58
2.54
13.2

3.19
2.85
2.54
13.9

3.1
2.56
2.54
13.2

3.15
2.63
2.54
13.42

3.14
2.59
2.54
13.2

2,389,284

103

105.1

102.7

103.5

102.9

10,500
14,310
6,675
14,579
10,680
1,766
4,360
15,360
1,300
801
7,316
21,096
6,986
17,777

139

ACPB1
ACPB2
FGENF
FGENG
GLOPP
LRP
MWP
PFP2
PNX3A
PNX3B
SMC2B
SMC2C
SMC2D
SMC2F

Exchange Traded Funds

1,232 FMETF First Metro Phil. Equity ETF

66,730

WEDNESDAY, JANUARY 13, 2016

MONDAY, JANUARY 11, 2016

High Low
UNIVERSAL BANKS

LOCAL BANKS
Asia United Bank
7.0000 6.2500
Banco de Oro Unibank
6.8360 4.0000
Bank of the Philippine Islands 6.8000 4.0000
China Banking Corporation
8.0000 4.2500
Development Bank of the Phils. 7.5000 4.5000
East West Bank
6.2500 4.2500
Land Bank of the Philippines
7.6667 4.6667
MetroBank and Trust Co.
7.5000 5.0000
THE PESO continued its slide
Philippine National Bank
8.4000 7.4000
against the dollar to fall to a new
Philippine Trust Co.
7.0000 4.5000
Rizal Commercial Banking Corp. 7.7500 5.7500
six-year low yesterday, tracking
Security Bank Corporation
7.0000 5.2500
the slump of regional currencies,
Union Bank of the Philippines 8.5000 6.5000
United Coconut Planters Bank 7.0000 5.0000
on safe-haven buying amid perAVERAGE
7.3716 5.0941

sisting worries over China.
BRANCHES OF FOREIGN BANKS
The local currency closed at
ANZ Bank
6.0000 2.7000
Deutsche Bank
6.2500 3.2000
P47.44 against the greenback on
Hongkong & Shanghai Bank
6.2500 2.7500
Tuesday, 17 centavos weaker than
ING Bank
5.6000 3.6000
Mizuho Corporate Bank Ltd.
6.8360 1.7000
its P47.27-per-dollar finish the
Standard Chartered Bank
4.6600 3.5550
previous session.
AVERAGE
5.9327 2.9175

This is the pesos worst close
COMMERCIAL BANKS
LOCAL BANKS:
since it finished at P47.63 a dollar
Bank of Commerce
6.7500 4.2500
on Nov. 5, 2009, and is even lower
BDO Private Bank
6.8360 4.0000
Phil. Bank of Communications 7.0000 5.0000
than 2015s trough of P47.395
Philippine Veterans Bank
7.3250 4.8250
against the foreign unit,
Robinsons Bank Corp.
7.5000 4.7500
AVERAGE
7.0822 4.5650
The peso opened the session

slightly stronger at P47.24 verBRANCHES OF FOREIGN BANKS
Bangkok Bank
7.5000 4.5000
sus the greenback. Its strongest
Bank of America
6.8360 4.8360
Bank of China
6.0000 2.8000
point was at P47.195-per-dollar,
Bank of Tokyo-Mitsubishi
5.7500 3.7500
while its weakest intraday level
Cathay United Bank Co., Ltd.
Citibank, N.A.
3.6100 3.3400
was logged at P47.45 against the
Industrial Bank of Korea-Manila
foreign unit.
JPMorgan Chase Bank *
6.8130 6.8130
Korea Exchange Bank
8.0000 4.5000
Dollars traded increased to
Mega Intl. Comml. Bank Co. Ltd. 8.0000 3.5000
$988 million from the previous
AVERAGE
6.5636 4.2549

SUBSIDIARIES OF FOREIGN BANKS
Chinatrust Bank
6.3210 5.3210
Maybank
7.0000 6.0000
AVERAGE
6.6605 5.6605
GENERAL AVERAGE
6.8583 4.4859
Source: BSP

T-BONDS

10-year
25.000
28.080
22.180
4.218

* in billion pesos; **NOVEMBER 10, 2015 auction

FOREIGN INTEREST RATES

Percent per annum

LIBOR (US$) Nov. 13 Dec. 11 Jan. 08

90-days 0.3636 0.5120 0.6211
180
0.6038 0.7465 0.8508
SIBOR (SG$) Nov. 09 Dec. 07 Jan. 04
90-days 1.0723 1.0777 1.1913
180
1.1290 1.1303 1.2526

FOREX RATE

TUESDAY, JANUARY 12, 2016

s
5.4
ctvs

Sept Oct Nov Dec Jan

PDS weighted
average rate

Current: P47.325
Volume: $988.00M
Previous: P47.271

INTERBANK RATES
MONDAY, JANUARY 11, 2016
DEMAND RATE

HIGH: 2 1/2% LOW: 2 1/2% AVE.: 2 1/2%

Sept Oct Nov Dec Jan

DAILY VOLUME

P2.600 B

Sept Oct Nov Dec Jan

T-BILL 91-DAY

MONDAY, DECEMBER 7, 2015

January 10, 2011 December 7, 2015

Average yield

Current: 1.836
Previous: 1.773
(November 2, 2015)

sessions $582.9 million, according to data from the Philippine

Dealing & Exchange Corp.
The peso depreciated further
on account of safe-haven buying
following speculations that Chinese authorities are again intervening in the market to support
the yuan, a trader interviewed
said.
This, coupled with the renewed drop in oil prices, dampened investors risk appetite and
weakened the peso, the trader
added.
Another trader said: We saw
sideways trading as the dollar
was pushed higher on strong jobs
data.
Generally, it was a stronger
dollar after NFP (non-farm payrolls) and as investors sought
safe-haven assets on concerns
over Chinas slowdown... regionals were pushed weaker, it was

the trend and we followed that

movement, the second trader
added.
For today, one trader said expectations of weak Chinese trade
data may further cause the peso
to depreciate, as it may prompt
investors to hold safer currencies.
An unexpected improvement
in the Chinese trade report may
reverse the projected daily trend
and bring the exchange rate back
towards the P47.30 level, the
trader added.
Another trader said the dollarpeso pair may continue to test
the upper side of the range on
persisting worries over China.
A trader said the peso could
move within the P47.30 to P47.60per-dollar band today, while
another put support at P47.25
and resistance at P47.50. Imee
Charlee C. Delavin

Central bankers rattle currency sabers

to depreciate foreign exchange rates

CENTRAL BANKERS around the

world may be sharing the same
New Years resolution: a weaker
currency.
Whether spoken or unspoken,
policy makers appear to be turning to depreciating exchange rates
as a route to stronger demand and
inflation as other stimulus tools
run out or fall flat.
Just last week, Chinas currency policy rocked global markets
for a second time in five months
as authorities allowed the yuan to
slide. That drew a warning from
Mexican Finance Minister Luis
Videgaray that the world faces a
renewed risk of competitive devaluations.
In the meantime, Swedens
Riksbank said its ready to intervene to limit gains in the krona,
while Swiss National Bank President Thomas Jordan reiterated a
pledge to keep the franc in check
almost a year since he gave up a
currency cap.
Officials at major central banks
may also have foreign exchange
(FX) rates at the forefront of their
minds. Even as the Federal Reserve raised its benchmark last
month, officials including Vice
Chairman Stanley Fischer noted
the dollars surge since mid-2014
had previously helped stay their
hand.
At the European Central Bank
(ECB), President Mario Draghi
noted last month that the euro
was important for price stability and growth as he increased
stimulus. A rising yen may force
Bank of Japan (BoJ) Governor
Haruhiko Kuroda to consider
more quantitative easing. Bank
of England Governor Mark Car-

MONEY QUOTATIONS
EXCHANGE RATES

NEW YORK-one US$ expressed in respective

unit of foreign currency
EMU
1.0854/59
United Kingdom
1.4534/39
Canada
1.4221/22
Switzerland
1.0019/22
Japan
117.70/71
India
66.75/77
Mexico 17.8900/00
Denmark
6.8720/29
Norway
8.9372/57
Sweden
8.5327/56
Singapore
1.4347/50
Australia
0.6994/99
New Zealand
0.6560/61
Hong Kong
7.7640/54
S. Africa
16.7822/22
Hungary
292.20/70
Israel
3.9303/09
Iceland
129.98/32
Czech Koruna
24.865/915
LONDON - one pound sterling expressed in
respective unit of foreign currency at 1637 GMT
US
1.4532 1.4539
Swiss France
1.4549
1.4552
Japan 171.1000 171.13
Norway
12.9872 12.9953
EURO
1.3381 1.3391
Canada
2.0662 2.0675
Denmark 9.9866 9.9909
Sweden 12.4022 12.4101
JAPAN-in per unit of foreign currency
UK
0.5841 0.5847
Switzerland 0.8499 0.8509

ney turned more dovish after the

pound rose last year on speculation the UK would soon follow the
Fed in hiking.
There is a new global regime
of de-facto FX targeting by many
central banks which unannounced and uncoordinated
causes additional damaging volatility and uncertainty in markets
and for businesses, Erik Nielsen,
chief global economist at UniCredit Bank AG, wrote in a report
to clients on Sunday.
What Nielsen calls a system
of managed floating exchange
rates may backfire for the world
economy given one countrys
gains on the back of a cheaper exchange rate will likely be offset by
softer growth in its trading rivals.
Past pain is behind Chinas
increased willingness to depreciate the yuan, according to George
Saravelos, a strategist at Deutsche
Bank AG in London. That may be
a topic of increased discussion
given Chinas role as chair of the
Group of 20 this year.

FEEDBACK LOOP

The Chinese economy has suffered because the currency has

been fixed to the dollar even as the
rest of the world has been busily
devaluing, Saravelos told clients
last week. China will no longer
tolerate competitive devaluations
from the rest of the world.
A falling yuan may in turn
mean the likes of the BoJ and
the ECB will have to add more
and more stimulus if they want
to lower their exchange rates, he
said. The Fed may need to scale
back the amount of rate increases
it envisages.

Disputing whether a currency war has broken out, Marc

Chandler, global head of currency
strategy at Brown Brothers Harriman & Co, also says the dollars
trend is still up, the yen outpaced
rivals for the past six months and
the yuan hasnt fallen that much
on a trade-weighted basis.
Every time a country eases
monetary policy to help reflate
its domestic economy, and its
currency falls, it cannot be fairly
accused of pursuing beggar-thyneighbor policies, said Chandler.
Cutting interest rates is not
zero-sum. It can help facilitate
an increase in domestic demand,
some of which may be for foreign
goods and services.
Still, feedback loops are on
the minds of strategists at HSBC
Holdings Plc, who estimate the
sensitivity of foreign-exchange
traders to interest-rate expectations is at its highest in 15 years.
That means any central bank
looking to tighten monetary policy runs into a strengthening currency, resulting in disinflationary
forces, which may prompt it to
rethink the original plan. In the
case of the Fed, that could limit
rate increases to two rather than
the four officials now plot.
A successful monetary-policy
normalization may have to wait
until the major economies can
tighten together, HSBC strategists led by David Bloom said
in a report. Currencies are constraining the plausible path of
interest rates in the future... The
risk is that we see an escalating
series of policies, where at least
part of the aim is to weaken the
currency. Bloomberg

Source: REUTERS

MONDAY, JANUARY 11, 2016

SUNLIFE.COM.PH

LENDING RATES

TUESDAY, JANUARY 12, 2016

Tenor
**5-year
Offer*
25.000
Tendered*
21.517
Awarded*
9.732
Coupon rate (pct)
3.800

S2/3

Peso hits fresh six-year

low amid China worries

MARKET WATCH

* as of January 8, 2016

Banking&Finance

SUN LIFE Asset Management said its managed assets reached over P50 billion in
2015 as the company continued to expand nationwide.

SLAMCI assets expand

ASSETS UNDER management
(AUM) of Sun Life Asset Management Co., Inc. (SLAMCI) reached
over P50 billion last year, it said
in a statement yesterday, on
the back of the units continued
strong performance.
The mutual funds arm of Sun
Life of Canada (Philippines), Inc.
(Sun Life) said its AUM as of Dec.
29 breached the P50-billion mark
and totaled P50.675 billion for
its Sun Life Prosperity Funds, up
7.93% year-on-year from December 2014s level.
SLAMCI said its Sun Life Prosperity Equity Fund continues to
be the top performer among all its
funds, posting a five-year return
of 46.45%, followed by the Sun
Life Prosperity Balanced Fund
and the Sun Life Prosperity Bond
Fund, which marked a five-year
return of 36.46% and 21.30% respectively.
Its latest offering, the Sun Life
Prosperity Philippine Stock Index Fund, also debuted strongly
when it was launched last May

2015, it said in its statement on

Tuesday.
SLAMCI President and Chief
Executive Officer Valerie N.
Pama noted that the outstanding performance of the Sun Life
Prosperity Funds is a result of the
companys effort to reach out to
more Filipinos nationwide.
This year, amid the favorable
forecast on the Philippine economy, she said SLAMCI intends
to maintain the momentum by
debuting two new dollar-denominated funds, launching an autodebit payment facility, improving
its digital capabilities, and further
boosting its presence in key cities
nationwide.
The outcome of our efforts
has been very encouraging and
we look forward to doing more.
SLAMCI aims to continuously
improve the investing experience
for all our clients, as well as introduce the practice of investing to
those who are not into it just yet,
Ms. Pama said. Imee Charlee
C. Delavin

Bonds,

from S2/ 1
that we think we should monitor
more closely, when we are already
prepared for a launch in the future, Mr. Tan said when sought
for an update on the planned exercise.
Definitely, we will go to the
market when we think the conditions are advantageous and
conducive, he added, noting that
the offer size could be $2 billion
in total $750 billion maximum
new money, and the rest for liability management.
The government would also
like to move towards longer-term

bonds, longer tenors, the official

said.
Amid recent market volatilities, Mr. Tan said domestically,
the market is holding up, particularly for fixed-income securities.
The Philippines overall compared to comparable economies
is not as badly affected as others,
including some of our neighbors.
So I think gradually there will
be more selectivity on the part
of foreign investors, to move investments into safer grounds in
emerging economies, the official
added.

RCBC,

from S2/ 1
grew 44% in 2015 from the yearago level.
On actual portfolio, [loans
are] supposed to grow 30% for
auto and for housing, 20-25%.
SME, we want to grow it by another 30% growth, she said when
sought for the banks specific targets.
The banks corporate loans
stood at P2.5 billion last year,
making up 4% of its total loan
portfolio, Ms. Racela said. This
year, the strategy is to grow these
loans by 30%.

SINGAPORE-in S$ per unit of foreign currency

Forwards & Deposits (Singapore)
US
1.4365 1.4375
One month
0.9375
1.1250
GROWTH IN PROVINCES
UK
2.0875 2.0900
Two months
1.0600
1.1800
Moving forward, RCBC SavAustralia 1.0043 1.0057
Three months
1.0625
1.2500
ings is looking to further tap the
Per 100
Six months
1.1250
1.3125
Hong Kong
0.1851
0.1853
Nine months
1.2500
1.3700
provincial market, where it has
Japan
1.2200 1.2213
One year
1.2500
1.4375
seen significant growth the past

years, said the official.
MONEY RATES
LIBOR RATE -London Interbank Offered
The thrift lender is planning to
Prime rate-charged by large
Rates charged in US$ for Eurodollar loans
open five desks and centers this
comml banks to their best corp. borrowers;
Rates fixed at 11:00 a.m. London time
year to expand its market reach,
Broker Loan Rate-charged to broker on stock
One Month
0.4238
particularly in Bataan, Legazpi,
exchange collaterals; Federal Funds-reserves
Two Months
0.5150
and Angeles in Pampanga.
traded among comml banks for overnight use
Three months
0.6211
Prime rate
3.2500
Six months
0.8508
Discount 0.7500
One year
1.1551
Basel,
Broker Loan Rate
2.0000

from S2/ 1
Federal Funds Rate
0.2500
GOLD BULLION

WORLD BULLION-in US$ per troy
EURODOLLAR DEP (New York)
ounce, rupees/10 gms, won/gram
a revised internal models apOne month
0.3800
0.4800
Ldn morning fix
1104.70
proach with more coherent and
Two months
0.4500
0.5500
Ldn aftrn fix
1100.75
comprehensive risk capture, the
Three months
0.5700
0.7000
London close
109.00
.10
committee said.
Four months
0.6300
0.7300
New York
1096.80
1097.30
The new rules, set for publicaFive months
0.6800
0.8000
Zurich
1,096.80 1,097.30
tion
in the next few days, will also
Six months
0.8000
0.9000
Bombay 24 carat
20/
0.00
feature an enhanced model-apNine months
0.9500
1.1000
Karachi 24 carat
0.00
0.00
proval process and more prudent
One year
1.1000
1.2500
Dubai 24 carat
0.00
0.00
recognition of hedging and portMONEY RATES (London)
US Gold Prices ($/Troy ounce)
folio diversification, as well as
Euro$ Depo
Engelhard gold (bullion)
1105.53
One month
0.3700
0.4700
Engelhard gold (fabricated)
1188.44
a revised standardized approach
Three months
0.6500
0.7500
Handy & Harman (base price)
1100.75
that serves as a credible fall-back
Six months
0.8500
0.9500
Handy & Harman (fabricated)
1221.833
and floor to the model-based apOne year
1.2100
1.4100
Krugerrand 1089.6 1092.6
proach, and facilitates more con-

Our strategy is to grow provincial, still provincial, Ms.

Racela said.
RCBC Savings Bank raked in a
P1.03-billion net income in 2014,
slightly lower than the P1.15 billion recorded in the previous year
due to the absence trading gains.
Its earnings were mainly driven
by continued growth in the banks
core consumer loan business.
RCBC Savings Bank President
and Chief Executive Officer Rommel R. Latinazo earlier said lending continues to propel the banks
growth.
Mr. Latinazo noted that the
bank will continue its strategy of
expanding its distribution network by investing in additional
business centers, automated
teller machines (ATM) and lending centers. As of end-May, the
thrift banking arm of RCBC has
150 branches and extension offices, and 405 ATMs nationwide.
Imee Charlee C. Delavin

sistent and comparable reporting

of market risk across banks and
jurisdictions, Basel said.
Stefan Ingves, chairman of the
Basel Committee, said finalizing
the new market-risk framework
represents an important milestone toward completing the Basel III reforms.
The committee expects to publish further details of proposed
revisions to the risk-weighted
assets framework following its
March meeting. Bloomberg

Sports
World

4/S2

EDITOR FRANCISCO P. BALTAZAR

WEDNESDAY, JANUARY 13, 2016

Game 5 is a toss-up, say Beermen

PULLED EVEN in their best-of-seven PBA
Philippine Cup semifinals in Game Four, the
defending champions San Miguel Beermen
are girding up for what they expect to be a
toss-up of a Game Five today at 7 p.m. at the
Smart Araneta Coliseum.
Staving off being placed on the brink of
elimination with a 105-92 victory last time
around that allowed them to level their series with the Elastopainters at 2-2, the Beermen try to build on the momentum they got,
something, however, they recognize would
not be easy.
Game Five is going to be a toss-up. We
all know that Rain or Shine will make the
adjustments and Coach Yeng Guiao still has
a lot off his sleeves, said San Miguel coach
Leo Austria following their victory.
He added: We may be fortunate as they
are missing some key pieces and has left
their rotation short. But at the end of the
day, it is all about who plays with a sense of
urgency and delivers.
Mr. Austria expressed satisfaction over
how his wards performed in Game Four after
a previous loss which he attributed to poor
decision making.
Our last loss was because of our poor
decision making. I am happy that they responded the way they did. They came into
the game with a different mind-set, maybe
because they knew we are on the brink of
elimination and it is going to be tough coming back from a 1-3 series deficit, he said.
The San Miguel coach further shared
that the long layoff they had, after barging
straight to the final four on the strength of
finishing in the top two in the elimination
round, had somehow affected their sharpness which is manifesting in the semifinals.
The long layoff really affected us. Twenty
days without playing we are still getting our

STILL HAS A CHANCE

On the Elastopainters part, coach Yeng

Guiao remained upbeat despite losing a
great chance to put the Beermen in a deeper
hole.
We still have a great chance in this series.
Its a best-of-three now and we will just make
the adjustments for Wednesday, said the
Rain or Shone coach after the game.
He admitted that they were beaten by
the Beermen but nonetheless lamented not
getting the breaks from the referees in Game
Four.
San Miguel beat us today as it hit its
three-pointers and had an inside presence.
But we did not get the breaks from the refs.
It is so disappointing. I dont understand it.
They can play physical on us but we cant
to them, said Mr. Guiao, who showed up in
the postgame press conference with hardly
any voice from the shouting he did during
the game.
They (San Miguel) already had the size
advantage and still had the advantage on
calls so that really made it difficult for us
to win. And it is getting worse. Anyway it is
even. So well see, Mr. Guiao said.
Still to miss the services of big man Raymond Almazan (ankle) and possibly guard
Jericho Cruz (knee) in todays game, Mr.
Guiao said they just have to play better.
We have to shut down their threes early.
We survived [June Mar] Fajardo scoring 40
points and win but we cannot survive others
scoring in the 20s and 18s. So we have to
choose. We also did not run as much as we

OPINION

Rakenrol in Gilas

s 2015 drew to a close, it was reported that Rain or Shine

big man Raymond Almazan was extended an invitation by
Gilas Pilipinas coach Tab Baldwin to join the nationals
training pool, a bit of news that this writer very much welcome as
I believe that the former Letran star and National Collegiate Athletic Association most valuable player will be a good addition to
the pool of players being considered for a tour of duty.
The invitation supposedly happened following Rain or Shines
elimination of Talk N Text in the quarterfinals of the ongoing PBA
Philippine Cup where Rakenrol, as Almazan is playfully
referred to for his seeming
MICHAEL ANGELO
likeness in appearance to Pinoy rock legend Pepe Smith,
S. MURILLO
torched, and eliminated, the
Texters with 15 points, 10 reBy inviting Almazan to the
bounds and three blocks.
Gilas pool, Coach Tab is
After the game, the Amerdoing the nationals a favor.
ican-Kiwi coach was said to
have approached Almazan
We already have promising
and said Hell try to get him
big men in the pool alright,
for Gilas, to which the player
with June Mar Fajardo of San expressed his willingness to
join if called up.
Miguel, Greg Slaughter and
I was fortunate enough
Japeth Aguilar of Barangay
to cover the said ROS-TNT
Ginebra, Ian Sanggalang of
game and like Baldwin was
Star and Mo Tautuaa and Troy impressed with the showing
Rosario around, but Almazan of the 26-year-old player from
Bataan. I even told a fellow
is one engaging addition.
sportswriter who was sitting
beside me that Gilas should
consider getting Almazan for the training pool. Lo and behold.
Sure enough, the 69 Almazan has done a solid job in raising his
stock in just three years in the PBA.
Known initially as a defensive player after being drafted third
overall in the rookie draft in 2013, this season has been a breakthrough one for him so far.
He is currently averaging in the Philippine Cup 10.9 points, 8.7
rebounds and 1.1 blocks in 24 minutes on the floor, all career-highs.
But more than the numbers, what is more telling with his performance now is the big man confidence he is showing and good
court sense, making full use of his height and agility.
True, he falls to some lapses here and there on both ends of
the court but, by and large, he has improved his game and Rain
or Shine has certainly been benefitting from it. (Note: Almazan is
currently out of their semifinal series with San Miguel because of a
severely sprained ankle.)
By inviting Almazan to the Gilas pool, Coach Tab is doing the
nationals a favor. We already have promising big men in the pool
alright, with June Mar Fajardo of San Miguel, Greg Slaughter and
Japeth Aguilar of Barangay Ginebra, Ian Sanggalang of Star and
Mo Tautuaa and Troy Rosario around, but Almazan is one engaging addition.
Of course, whether he will make the final roster remains to be
seen. But the purpose of the pool is to gather the best possible talent for the system they are envisioning and Almazan
for all he brings is worthy of consideration.
Time to put some rakenrol in Gilas, dont you
think?

GIVE AND GO

MICHAEL ANGELO S. MURILLO is part of BusinessWorlds

editorial staff and a contributor for the paper.
msmurillo@bworldonline.com

wanted to. We were outrebounded by 22 and

we have to address that, said Mr. Guiao.
In Game Four, reigning Philippine Basketball Association most valuable player
Fajardo continued with his solid form,
finishing with 33 points, 16 rebounds and
six blocks. Marcio Lassiter had 20 and
Arwind Santos 19 points.
Rain or Shine, meanwhile,
was led by 15 points each
from rookies Maverick Ahanmisi and Don Trollano.

SAN MIGUEL and Rain or Shine

fight for a 3-2 series lead in the
pivotal Game Five today at the
Smart Araneta Coliseum.

ALVIN S. GO

By Michael Angelo S. Murillo Reporter

familiarity back. But slowly we are regaining

that, he said.
Looking ahead to todays game, Mr. Austria said they have to continue to play with
a sense of urgency and stick to their game
plan, particularly on defense.
Our defense is key as Rain or Shine is
very dangerous. We have to be ready for
them, he said.

ROS to suit up Cruz, but wont have Almazan the rest of the semis
importance of not having these two
key players in the series.
We missed Jericho there. Hes
probably our best finisher in transition
and he couldnt contribute. Also, we
got outrebounded terribly and were
missing Raymond in that department.
I think we got outrebounded by more
than 20 caroms. If you lose that much,
theres no way you can win a game,
Mr. Guiao told sportswriters.
An MRI on his knee revealed that
Mr. Cruz did not incur an injury on his
ACL and PCL and no damage on his
meniscus as well.

By Rey Joble
JERICHO CRUZ has been cleared by Dr.
Edgardo Eufemio after banging up his
knee and will be able to play in the next
game, but Raymond Almazan will be out
of the entire Smart Bro PBA Philippine
Cup best-of-seven semifinals series,
leaving the Elastopainters decimated.
On Monday night, the Elastopainters were clearly outplayed by the
San Miguel Beermen and Rain or
Shine coach Yeng Guiao stressed the

He just suffered a bone contusion brought about by the banging on

his knee, said physical therapist JD
Calinawan of Rain or Shine.
Mr. Cruz had to be carried by a
stretcher out of the court in Game 3
won by the Elastopainters and wasnt
able to practice on Sunday. But he
suited up on Monday, joined the shoot
around and declared himself ready
to go.
I dont want to miss this opportunity. I got injured last season against
Alaska. I want to make sure I will be
playing this time. I hope Coach Yeng

Kerber joins
casualty list
ahead of Open

SEBASTIEN LOEB (2nd L) of France watches

as his car falls back after he had an accident
which turned it over during the eighth
stage of the Dakar Rally 2016 near Belen,
Argentina, Jan. 11.

REUTERS

Defending champion Al-Attiyah

strikes as Dakar disaster hits Loeb
BELEN, ARGENTINA Defending champion Nasser al-Attiyah
won the eighth stage of the Dakar
Rally on Monday as disaster struck
debutant Sebastien Loebs impressive start to the grueling event.
Al-Attiyah, in a first stage win
for Mini against the might of Peugeot who had won the previous
six, finished 12 seconds ahead of
Carlos Sainz and 31 seconds in
front of new leader Stephane Peterhansel, both representing the
French car manufacturer.
Nine-time world champion
Loeb, after three stage wins, lost
his lead of the overall standings
as he ground to a standstill after
taking a wrong turn and rolling
less than 30 kilometers from the

end of the 393 kilometers timed

special of the 766-kilometer run
between Salta and Belen.
Despite massive damage to
the car, Loeb and co-pilot Daniel
Elena managed to limp home to
now stand eighth in the overall
standings, more than one hour off
the pace.
Its over for the victory, said
Loeb. In a stream there was a
huge step that I didnt see and
which threw us into a barrel roll.
We lost a lot of time because
we had to change the wheels.
Our victory hopes have gone
we knew that we didnt know
it all!
Loeb may have impressed during the first week of the Dakar,

would allow me to play, Mr. Cruz told

BusinessWorld in an interview.
According to Mr. Cruz, his left knee
is feeling better now than the previous
days. I was able to bend it now. I can
walk and run. I think Im ready to play.
he added.
With the series now tied at 2-2
apiece, Mr. Guiao is expected to use Mr.
Cruz in todays pivotal Game 5.
The Elastopainters, though, will miss
Mr. Almazan, who suffered a severe
ankle sprain that would sideline him
until midway the championship round if
ever the team reaches the finals.

putting his WRC experience to

good use, but Peterhansel warned
that the Dakar is a different beast.
He fell into the trap we could
have expected. Once youre off the
track you have to open your eyes
twice as much, he said.
That was where he risked
making a mistake.
KTM rider Toby Price won the
motorcycle section, the Australian
landing a sledgehammer blow in
distancing Paulo Goncalves (Honda), the overnight leader, by 5:17.
As a result, Price took command of the overall standings
with a lead of 2:05 over the Honda
rider from Portugal.
Tuesday s ninth stage is
around Belen. AFP

SYDNEY German world number

seven Angelique Kerber withdrew
from the Sydney International on
Tuesday, adding to a lengthy list of
ailing women stars ahead of next
weeks Australian Open.
The fourth seed, who won
her first-round match against
Ukraines Elina Svitolina in fierce
heat over three sets on Monday,
pulled out of the tournament citing a gastrointestinal illness.
Her withdrawal follows defending champion Petra Kvitova,
who also had gastrointestinal
problems, and second seed Agnieszka Radwanska who dropped
out with a leg injury.
Kerber, who lost to Victoria
Azarenka in Saturdays Brisbane
International final, said she experienced problems overnight after
Mondays victory.
Im very sorry I cant go on
court today but Im not feeling
100%, Kerber said.
I started to feel unwell yesterday and today my stomach is
not right. I dont want to risk my
health before Melbourne.
The trios withdrawals came
after injury problems at other
Australian tournaments for the
worlds top-ranked stars including Serena Williams (knee),
Garbine Muguruza (foot) and
Maria Sharapova (forearm).
Russian Ekaterina Makarova
received a walkover into the
Sydney quarterfinals following
Kerbers withdrawal.
The Australian Open starts in
Melbourne on Monday. AFP

Sports

World
WEDNESDAY, JANUARY 13, 2016

S2/5

Spurs equal best start

in franchise history

REUTERS

FC BARCELONAs Lionel Messi of Argentina holds the World Player of the Year
award during the FIFA Ballon dOr 2015 ceremony in Zurich, Switzerland, on
Jan. 11.

Barcas Lionel Messi wins

record fifth Ballon dOr
ZURICH Barcelona star Lionel Messi won a record fifth FIFA
Ballon dOr award for the worlds
best player at a ceremony in Zurich on Monday.
The Argentine dethroned threetime winner Cristiano Ronaldo
in adding to his four consecutive
awards from 2009 to 2012.
Brazil star Neymar, who also
plays for Barca, came third in the
vote by national team coaches
and captains, and journalists.
Its a very special moment to
come back, to get a Ballon dOr
again after the two years in which
Cristiano Ronaldo won each
time, said the 28-year-old Messi.
It is incredible that its my
fifth. This Ballon dOr means
more than I could have ever
dreamed of as a child.
Messi, who voted for his Barca
teammate Luis Suarez, had 41%
of the vote, Ronaldo getting 28%
and Neymar 8.0%.
His victory continued the duopoly of the award he enjoys with
Ronaldo that has lasted since Brazilian Kaka claimed top honors
in 2007.
We have always had a good
relationship, said Messi about
his rivalry with Ronaldo.
We share a profession, we
have our day-to-day battles because we are playing for different
teams, but it is more in the press
that they compare us for one reason or another.
On our part, there has always
been admiration and respect.
Messi was the star player
as Barcelona won the treble of
Champions League, La Liga and
Spanish Cup last season, before
also adding the Club World Cup
last month.
Although he became the first
ever player to win the award five
times, Messi had said earlier that
he would swap all those indi-

vidual accolades for a World Cup

success.
Team awards are more important than individual ones, he
said, before adding that the World
Cup is every players objective,
its really the pinnacle.
Messi and his Argentina teammates came close to winning the
World Cup in Brazil in 2014 but
were beaten 1-0 by Germany in
the final.
His Barcelona boss Luis Enrique won the coach of the year
award while Jill Ellis took the
womens trophy.
She had guided the US to womens World Cup glory in Canada
last summer, beating Japan 5-2
in the final.
Carli Lloyd scored a hattrick in that match and that was
enough to help her land the FIFA
womens player of the year gong.
She had also previously scored
the winning goals for the US in
the Olympic Games finals of 2008
and 2012.
Enrique edged out Bayern
Munich boss Pep Guardiola and
Chile coach Jorge Sampaoli.
Brazilian Wendell Lira won
the Puskas award for goal of the
year for his spectacular overhead
bicycle kick for Goianesia in a regional league match, edging out
Messis own mazy dribble against
Athletic Bilbao in last seasons
Copa del Rey final.
Barca and Real dominated the
team of the year as well with four
players each, including Messi,
Neymar and Ronaldo.
The only players from outside
the two Spanish superpowers
were Bayern Munichs Germany
international goalkeeper Manuel
Neuer, Brazilian center-back
Thiago Silva, who plays for Paris
Saint-Germain, and Juventuss
France midfielder Paul Pogba.
AFP

NEW YORK Forward LaMarcus Aldridge tallied 25 points

and 11 rebounds as San Antonio
matched the best start in franchise history with a 106-79 rout of
Brooklyn on Monday.
The Spurs improved to 33-6,
matching the teams best 39game start, a mark set during
the 2010-11 season. San Antonio
also posted its league-leading 14th
win by at least 20 points while
stretching its winning streak to
eight games.
Aldridge shot 12-for-17 from
the field and posted his 12th double-double. He had his 10th game
with at least 20 points and was
the Spurs leading scorer for the
11th time.
Forward Kawhi Leonard
scored 17 points and rookie center
Boban Marjanovic scored 13 for
the Spurs, who won despite little
scoring from all-star guard Tony
Parker and center Tim Duncan.
Parker scored six points, while
Duncan finished with eight.
I like him, San Antonio coach
Gregg Popovich said of Marjanovic. Hes really an intelligent
player. Hes hardworking and just
learning. So every minute he gets
really helps him develop.
Interim coach Tony Brown
was making his debut with the
Nets, one day after the sacking of
coach Lionel Hollins.
Brooklyn missed 10-of-12
three-point attempts and had 19
turnovers, leading to 30 San Antonio points.
Center Brook Lopez led
Brooklyn with 18 points and forward Joe Johnson added 16 for
the Nets, who lost their 10th consecutive home game.
The Spurs led 77-56 at the
end of the third quarter. The
Nets scored the first six points
of the fourth to get within 77-62.
Two minutes later, San Antonio
stretched the lead to 87-62 as
Leonard sandwiched a pair of
three-pointers around a jump
shot by Aldridge.

REUTERS

SAN ANTONIO SPURS center Boris Diaw (33) reaches for the net as Brooklyn Nets forward Thaddeus Young (30) falls off
defense during the fourth quarter at the Barclays Center. San Antonio Spurs won 106-79.
San Antonio led by double digits over the final 18 minutes.

WIZARDS BEAT BULLS

Elsewhere, the Washington Wizards had no trouble beating the Chicago Bulls 114-100, despite missing
several players due to injuries.
The Wizards won their second
straight game by getting points
from 10 players, including seven
who finished in double figures.
Point guard John Wall paced
the attack with 17 points, 10 assists and three steals, while guard
Garrett Temple, forward Otto
Porter and center Nene all scored
14 points in the win.
Ramon Sessions had 16 points,
Gary Neal added 11 points and

12 months for bringing the game into

disrepute.
However, Montreal-based WADA
took the case to the Court of Arbitration
for Sport in Switzerland.
The court ruled it was comfortable
that the AFL doping code had been
violated and found by a majority that
all players were significantly at fault.
Regrettably we can confirm the Court
of Arbitration for Sport has found 34 past
and present players guilty of committing an
anti-doping rule violation, Essendon chairman Lindsay Tanner said in a statement.
As a result, the players including
12 currently listed with Essendon have
been suspended for the 2016 season. The
club is currently digesting the decision.
The AFL season begins in March.
Twelve of the players banned are still
on Essendons books, including captain
Jobe Watson. Other players are now at
rival clubs while some have retired.

PONDEXTER TO UNDERGO
KNEE SURGERY

New Orleans forward Quincy

Pondexter will undergo surgery
on his left knee that will end his

season before it begins, the team

announced on Monday.
Pondexter had yet to make his
debut in the 2015-2016 campaign
after undergoing arthroscopic
surgery on his left knee in the offseason that he never recovered
from.
This decision was determined due to a lack of progression in the recovery process,
Pelicans Senior Vice-President
of Basketball Operations/General Manager Dell Demps said
in a statement.
New Orleans traded for Pondexter at mid-season a year ago,
and he averaged nine points for the
Pelicans while helping them reach
the playoffs. AFP/Reuters

OPINION

Hobie 16 National Champs

Philippine Sailing Association National Team members Richly Magsanay

(second from left) and Ridgley Balladares (third from left) successfully
defended their title at the Lima Park Hotel 2016 Philippine Hobie National
Championship held last weekend at the Taal Lake Yacht Club. The national
regatta, organized by the Taal Lake Yacht Club, is part of the Philippine
Inter-Island Sailing Foundation (PHINSAF) Potato Corner National
Travelers series. It was organized in cooperation with the Philippine Sailing
Association and PHINSAF. Landing second were Boyet Magsanay and Michael
Ngu, who also dominated the masters category. Finishing third were Maria
Vidoeira-Hagedorn and Joe Hagedorn, who are also second placers in the
masters. Monchu Garcia and Diego Garcia got third place at the masters.
Also in photo are (from left) Ria M. Nario, vice-president for Sales of Lima
Park Hotel, and Peter Capotosto, owner of Taal Lake Yacht Club.

34 Aussie football league players banned for doping

MELBOURNE Thirty-four Australian
Football League (AFL) players were
yesterday slapped with lengthy bans for
doping offenses in a case officials called
the most devastating self-inflicted injury
by a sporting club in Australian history.
The Court of Arbitration for Sport
(CAS) upheld a World Anti-Doping
Agency (WADA) appeal against an AFL
tribunal ruling last March that cleared
past and present players from the
Melbourne-based Essendon club of using
the banned substance thymosin beta-4.
The tribunal followed an in-depth
probe by the Australian Sports
Anti-Doping Authority (ASADA) that
examined the clubs player supplements
and sports science program which sent
shockwaves through the game.
The AFL had hit the top Australian
side with the biggest fine in the sports
history A$2 million (US$1.6 million)
and banned coach James Hird for

Drew Gooden finished with 10

points and 12 rebounds, all off the
bench.
Washingtons reserves outscored Chicagos 47-32.
Chicago was led by Derrick
Roses 23 points, while shooting
guard Jimmy Butler added 19
points and center Pau Gasol had
15 points and 10 rebounds.
The Bulls lost consecutive
games for the first time since a
three-game losing streak in December.

RIGHT RESULT
WADA Director-General David Howman
praised the outcome for showing that
analytical and non-analytical evidence
gathered through an investigation can
be successfully presented to an independent panel.
While todays decision represents
the right result for the anti-doping community, it most importantly represents
justice for clean athletes in Australia and
worldwide, he added.
The players were accused of using a
prohibited peptide thought to aid recovery from injury during the 2012 season
in a program led by controversial sports
scientist Stephen Dank, who is appealing against a life ban imposed last year
over his role in the scandal.
This unfortunate episode has
chronicled the most devastating selfinflicted injury by a sporting club in
Australian history, said ASADA Chief

Executive Ben McDevitt, adding that the

CAS decision was final.
The players had received antidoping education through the AFL
and ASADA, and were well aware that
they are personally responsible for all
substances that entered their body.
Unfortunately, despite their education, they agreed to be injected with a
number of substances they had little
knowledge of, made no enquiries about
the substance and kept the injections
from their team doctor and ASADA.
AFL Chief Executive Gillon McLachlan
said he was fully committed to keeping
the code clean but suggested the players had been misled.
It is our view that they have
been horribly let down by the (club)
administration of the time, that the club
has sought to acknowledge what has
happened and to move on from these
events, he said. AFP

Dominating start

t was unfair from the outset, really. From the moment Jordan Spieth killed his opening shot, the Hyundai Tournament of Champions was his for the taking. Not that the field
lacked the talent to compete against him; on the contrary, it was
completely composed of players who managed to claim a title
during the immediate past season of the United States Professional Golfers Association Tour. Yet, even as all 32 of them were
winners, only he had both the fitness and the mind-set to emerge
first among equals.
Which, for all intents,
explains away the whopANTHONY L. CUAYCONG ping eight-stroke difference
between Spieths winning
Spieths showing underscores score and the next best on
the leaderboard. For all the
the seriousness with which
changes the Tour has made
he views his craft. He may
to its schedule, the start of
not be the longest off the tee the calendar year has remained one where members
or the most accurate on the
strive to get in shape. Thusly,
greens, but his commitment the annual stop at the Kato stay in the moment rivals palua Resort in Hawaii is,
the sports all-time best. That for many, also one of rest
and recreation. Meanwhile,
hes young and relentless
the 22-year-old Texan apshould serve as motivation
proached it as he did all of
his previous tournaments
for the rest to step up.
with a focused effort on
ultimately emerging on top.
Indeed, Spieth never let up, not even when he knew those around
him were no match under the circumstances. He studied every shot
as if deep in a major, slicing fairways and sticking approach shots,
and, when he wasnt, holing chips and long putts. And, yes, his
condition was such that all and sundry, even fellow participants,
took notice. After the second round, comments about bringing
ones A-game became common. By then, though, it was too late;
he had already built a four-stroke advantage, and, concomitantly,
summoned the confidence to retain his dominance to the end.
If nothing else, Spieths showing underscores the seriousness
with which he views his craft. He may not be the longest off the
tee or the most accurate on the greens, but his commitment
to stay in the moment rivals the sports all-time best. That hes
young and relentless should serve as motivation for the rest to
step up. Else, theyll be mere witnesses as he treads
a path to greatness.

COURTSIDE

ANTHONY L. CUAYCONG has been writing Courtside since

BusinessWorld introduced a Sports section in 1994. He is the Senior
Vice-President and General Manager of Basic Energy Corp.

6/S2

Bulletins

WEDNESDAY, JANUARY 13, 2016

Ad Summit Pilipinas 2016 introduces second batch of speakers

Pearl White Lenovo VIBE Shot

now available in the Philippines
BUILDING ON the success of its flagship smartphone product
under the VIBE ON campaign, Lenovo announced the availability the Lenovo VIBE Shot in pearl white. The VIBE Shot is
targeted for both shutterbugs and savvy socials who want a
sleek and stylish design. With the VIBE Shots dedicated shutter button, users can instantly activate the camera function
to take the perfect shot. This premium smartphone also has
on-board infrared auto-focusing system that works twice as
fast as a conventional autofocus and tri-color LED flash a
worlds first for smartphones, that ensures more realistic skin
tones. The VIBE Shot features a 16-megapixel rear camera
with Auto mode and onscreen point & shoot guidance
along with Pro mode that lets seasoned photographers adjust
manual controls like aperture, shutter speed and ISO settings,
enabling limitless compositions to unlock their creativity. The
Lenovo VIBE Shot is also available in two other color: carmine
red, and graphite grey and can be purchased at all authorized
Lenovo dealers nationwide for only P17,999.

MORE ADVERTISING talents are set to grace Ad

Summit Pilipinas 2016 (ASP 2016).
The Association of Accredited Advertising Agencies of the Philippines (4As) officially announced its
second batch of speakers for the countrys biggest
advertising and marketing event, scheduled from
March 9 to 12 at the Subic Bay Freeport Zone.
Nils Andersson, Jose Miguel Sokoloff, and Aliza
Knox are slated to share valuable insights at next
years Ad Summit, with the theme Come Out
and Play. The event promises to be a hotspot for
discovering and discussing innovative ideas for the
marketing communications industry.
Nils Andersson is president and chief creative officer
of TBWA Greater China. His more than 15 years in the
creative field have earned him numerous awards for his
campaigns and agencies, which include TBWA Japan,
Ogilvy & Mather Greater China, and Y&R China. To date,
his Mic campaign for Penguin books is considered
among the most awarded print campaigns in the world.
For his part, speaker Jose Miguel Sokoloff,
president of Creative Council of the Mullen Lowe
Group, advocates for the power of advertising in
instilling positive social change. His campaign for the
Colombian Ministry of Defense, which has convinced

AirAsia celebrates
Ati-Atihan festival

El Nido Resorts Pangulasian Island cited

as SEAs best sustainable boutique hotel
El Nido Resorts Pangulasian Island was named Southeast Asias
Best Sustainable Boutique Hotel in 2015 by the World Boutique Hotel
Awards. The trophies held up by Tourism Secretary Ramon Jimenez
(center) and El Nido director for sales and marketing Joey Bernardino
(left) and lauded by Undersecretary for tourism development
Benito Bengzon Jr. were among a set of awards won by the Palawan
destination from global bodies.

FOR THE first time, AirAsia is

this years proud airline partner
of Ati-Atihan festival in Kalibo
and the Worlds Best Low
Cost Carrier for seven straight
years running since 2009 is
celebrating with exclusive
treats for its guests flying to/
from Kalibo from Manila and
international destinations of
Kuala Lumpur in Malaysia,
Busan and Seoul in South Korea
and various points in China.
Until Jan. 16, all AirAsia
passengers to Kalibo International Airport will each receive
Ati-Atihan festival discount
coupons to popular restaurants
and cafes with limited edition
Ati-Atihan t-shirts, fans, caps and
other exciting prizes including
free airfare for two that are up
for grabs at the AirAsia booth in
Pastrana Park.
Promo fares to/from Kalibo
and other AirAsia destinations
from the Philippines are also
available until Jan. 17 via www.
airasia.com.

numerous guerrillas to demobilize and rejoin society,

is by far his most impactful work.
Representing women power, Aliza Knox, Twitters
marketing director of online sales for Asia-Pacific and
Latin America, has decades of marketing and management experience. She has worked with prestigious
companies such as Charles Schwab Corp., iGlobe
Partners, and Visa International.

The three will be joined by first-batch speakers

John Mescall, McCanns global executive creative
director, and Rajan Anandan, Google SEA and Indias
vice-president and managing director, in sharing
their experiences and insights on various aspects of
the industry.
Interested participants may register and reserve
their slots on www.adsummit.ph.

Ramon F. Garcia & Co., CPAs to mark 35th year

FOR FOUNDER and Managing Partner
Ramon F. Garcia of Ramon F. Garcia
& Co., CPAs (RFG & Co.), businesses
should still continue to focus more on
being financially steady and credible
to continue to earn the trust of clients
and customers.
He said for all their clients, RFG &
Co. provides practical solutions while
working hand-in-hand with clients to
get the desired results when it comes to
financial management. Our experience
shows that weve achieved more than
95% good results. Our clients are comfortable with us because the moment
we say we will do it, they trust us that
we can do it.
Just recently, RFG & Co. was able to
help a major client save several millions
of pesos in terms of registration fees,
licenses and tax payments, but all within
the confines of the law.
Another client in the food industry
was also satisfied after RFG & Co. was
able to help them restructure and
strengthen their internal accounting
control systems, which they started doing 15 years ago.
RFG & Co. also became dynamic
in order to survive, particularly in this
world of fast-paced technology. He
was proud to note that RFG & Co. was

IN PHOTO (L-R): Nhorie L. Paguio, partner; Ramon F. Garcia, managing partner;

Josefino F. Garcia, founding partner; and Ting I. Samonte, partner.
one of the pioneers to use information
technology in their systems. But still,
he knows that technology is meant to
supplement, not take over the minds of
his people.
As for his company, which will
celebrate its 35th year this year, Mr.
Garcia is proud of its organic growth.
I started when I was just 26 years old.
I helped grow this company through

hard work, and we didnt step on

anyones toes. We nurtured our people
by providing them with professional
growth to help them grow from
within because we wanted to protect
and maintain our culture, our values
system. It is important yet very hard
to maintain, and Im happy to say that
it was a slow but steady growth over
the year.

People

Chef Geuffroy to hold pastry events at Enderun Colleges

Briefs
Heritage Hotel Manila offers
various New Year merriments

JUMPSTART the New Year and get 25% off with

Heritage Hotel Manilas amazing merriments
offerings. Make a fresh start this New Year with a
rejuvenating staycation. There are three reasons
why it begins with merriments: attractive savings of 25%, complimentary Wi-Fi and a daily
breakfast for two. Book by Feb.29 to enjoy this
special deal. This is valid for stays until Feb. 29.
For inquiries and reservations, call (02) 8548888 or visit www.heritagehotelmanila.com.
The Heritage Hotel Manila is managed by the
Millennium Hotels and Resorts with more than
120 hotels across Asia-Pacific, Europe, Middle
East and North America.

containing skillful combination of pastry components such as Breton Shortbread, Pecan-Peanut

Praline Crunch, Lemon-Calamondin Orange
Cream, Flourless Chocolate Cake, Orange-Lemon Marmalade, Dark Chocolate Glaze, Chocolate
Mousse and Cake Decorations.

PCCI meets with foreign

affairs head of Guangdong

PRESIDENT George T. Barcelon of the Philippine

Chamber of Commerce and Industry (PCCI) and
Director-General Fu Lang of the Foreign Affairs
Office of the Peoples Government of Guangdong
Province discussed ways to enhance opportunities
for trade and investments between the Philippines
and Guangdong under the provinces new five-year
economic plan. Among those who marked the
meeting with exchange of gifts wereZhang Bing,
deputy director of Foshan Foreign Affairs and
Overseas Chinese Affairs Bureau; Angelito E. Colona,
PCCI director; Dr. Francis Chua, chairman emeritus;
Fu Lang, director general of Guangdong Foreign
Affairs Office and President of Guangdong Peoples
Association for Friendship with Foreign Countries;
and George T. Barcelon, PCCI president.

This is a program worth experiencing

especially for aspiring pastry chefs and
anyone interested in learning about exquisite
pastry creations. Pice de Rsistance will
be held at Enderuns Culinary Amphitheatre
on Jan. 20, 9 a.m. to 12 noon, for only P500
per person.
Shortly after Pice de Rsistance,
participants may also partake in a Pastry Buffet
by Chef Geuffroy featuring a wide selection of
classic French desserts that will satisfy the sweet
tooth of all pastry aficionados. All the proceeds
of this event will be for the benefit of Tuloy
Foundation, a nonprofit and nongovernment
organization that provides residential care and
educational programs to former street children.
The Pastry Buffet will be held at Enderun Colleges Kitchen 3 from 12 noon to 2 p.m., for only
P1,500 per person.
For inquiries or ticket sales, call Janel at
+63917-540-72-54 or e-mail enderunextension@
enderuncolleges.com.

Holcim plants recognized

anew for energy efficiency

FOR EXCELLENT operations that led to savings in

fuel use and reduced carbon dioxide (CO2) emissions, three cement plants of construction solutions
company Holcim Philippines, Inc. were cited by the
Department of Energy during the 2015 Don Emilio
Abello Energy Efficiency Awards. The companys
plants in La Union, Misamis Oriental and Davao all won
Outstanding Awards for their operational efficiency,
improving their performance by at least 5% from
the previous year. The Misamis Oriental plant tallied
energy savings equal to 8 million liters of oil and 43
million kilograms (kg) of avoided CO2. The Davao
facilitys efficiency improvement led to 10 million liters
of oil savings and 21 million kg of avoided CO2. The La
Union plant booked 8 million liters worth of oil savings
equal to 17 million kg of avoided CO2.

ALAIN DUCASSE Institute at Enderun Colleges

is dedicated to cultivating excellence in the
practice of culinary and pastry arts. Renowned
around the globe, Alain Ducasse Institute is ever
evolving and dedicated to offering innovative,
up-to-date courses so that its graduates gain
relevant competencies needed in the fast-paced
and competitive culinary world.
Enderun Colleges welcomes back superstar
patissier, Chef Franck Geuffroy, whos in Manila
for two weeks. The visit of Chef Geuffroy, Pastry
Director of Alain Ducasse Education in France,
is much awaited by not only Enderuns chefs
and students, but also many in the industry, as
he will be showcasing a live pastry demo. Pice
de Rsistance with Chef Franck Geuffroy will
be an introduction to Enderuns redeveloped
Certificate in Pastry course, which will include
new advanced pastry modules. Enrollment is
ongoing for the March 2016 intake.
Participants of this demo will witness Chef
Geuffroys artful rendition of the Enderun Cake

Pizza Hut Philippines wins in regional competition

Pizza Hut earned eight out of nine awards at the recent 2015 Yum!
Restaurants Inc. (YRI!) Regional Champs Challenge (RCC). The RCC is
an annual event organized by YRI! to enhance the development of team
members skills, with focus on fostering executional operations excellence
and exceeding customer expectations. Photo shows Pizza Hut Philippines
Chief Operating Officer TH Lim (second from left); District Manager for
South Operations Jeanette Uy (leftmost); and Vice-President for Operations Choc Blanco (second from right), together with 2015 YRI! Regional
Champs Challenge Winners (L-R) Mark Joseph Villanueva, Von Ryan
Eddun, Tomas Pulido, Jr., Lady Joy Campos, Exceniza Pineda, Johara Rose
Gonzales, Erica Castaeda, and coach Al Guillermo.

NOTE: Press and photo releases are published in this paper free of charge.
Priority will be accorded to releases of news value, which are subject to
editing. Releases, preferably with high-resolution photos, may be e-mailed to
bulletins@bworldonline.com. Materials sent become BW property.

Mapa Institute of Technology

receives citations from CHEd

THE COMMISSION on Higher Education (CHEd),

through CHEd Memorandum Order No. 38 Series
of 2015, has recognized Mapa Institute of
Technologys Chemical and Computer Engineering programs as Centers of Excellence and its
Information Technology program as a Center of
Development, proving once again that it is one of
the premier technological schools in the country.
Meanwhile, a Center of Development refers to
a program with a potential to become a Center
of Excellence in the future. The designation of
Centers for Development and Excellence is valid
for three years, and institutions or departments
declared as such may avail financial assistance
on a project proposal geared towards the further
development of the program evaluated.

TEMOX multi-insect killer

offers discounts, freebies

TEMOX Multi-Insect Killer welcomes the new

year with family-friendly bundles that will keep
ones homes insect-free and at the same time,
putting a lot of savings in ones household
budget. Save as much as P34.75 because the
customer gets a 100-mL Water-Based Liquid
Temox pouch with every purchase of a 500mL Kerosene-Based Liquid Bottle Spray or
100-mL Kerosene-Based Liquid pouch when
you buy a 500-mL Water-Based Liquid Bottle
Spray. Proudly Filipino-made, FDA-approved
Temox ascribes to international standards of
product safety and environmental protection.
Temox multi-insect killer is available at leading
supermarkets, drugstores and hardware in Metro
Manila, Metro Cebu, Metro Davao and Bohol.

S2/7

WEDNESDAY, JANUARY 13, 2016

Beyond Sabel
BenCab recreates his only performance art piece
By Jasmine Agnes T. Cruz
Reporter

THERE WAS a ring of coconut coir inside the art gallery,

white masks nestled around
the ring. The space was littered with paper cups, water
bottles, plastic bags, and other
objects. A flutist entered and
played some high-pitched
notes with some turning
into dissonant sounds.
We were there waiting
for the performers to enter
one of them would be
National Artist Benedicto
BenCab Cabrera. Known
for his paintings and prints,
few people know that he also
has one performance art
piece. This performance was
the highlight of The UP (University of the Philippines)
Vargas Museums art exhibit,
BenCab: Another Scale.
I wanted to show the
more experimental BenCab,
said the exhibits curator, Patrick Flores, adding that UP is
a site of experimentation and
innovation, so it was appropriate to revisit this moment
in Mr. Cabreras career.
The exhibition is part of
BenCab 50 Creative Years,
a year-long retrospective in
eight museums which celebrates Mr. Cabreras years
as a professional artist. The
series of events is organized
by the The BenCab Art
Foundation, Inc.

NATIONAL ARTIST Benedicto

BenCab Cabrera performs
tai chi in the culmination of
a performance art piece that
recreates one done in Bandung,
Indonesia in 1998. (Below)
The artists hands incense to an
audience member as part of the
performance.

Though performance art is

something that the National
Artist doesnt normally do, the
ideas behind the piece relate
to the issues that he tackles
in his paintings and prints,
and can even be related to the
original impulse behind Sabel,
the scavenger that became
Mr. Cabreras muse.

AS PART OF the ongoing celebration of National Artist Benedicto BenCab Cabreras 50 years at an artist, Samsung opened an interactive
exhibit at the Yuchengco Museum to celebrate the milestone. To coincide
with the event, Samsung also unveiled the Galaxy Note5 BenCab Limited
Edition (photo below), of which only 1,000 units will be made available
in the market. BenCab in Two Movements captures how art and technology are intertwined. The show allows visitors to dance along to BenCabs
collaborator, Polish choreographer Paulina Wycichowska, whose movements are captured in 40 sketches in the 2006 work Studies of Dance
Movements. The exhibit uses customized Samsung Smart TV and mobile
apps to enhance the visitors interactive experience. Meanwhile, the
limited-edition phablet comes in the Gold Platinum Galaxy Note5 variant with three pre-loaded Samsung art applications, exclusive BenCab
artwork wallpapers, a commemorative BenCab in Two Movements micro
art book, a special protective case featuring BenCabs 2007 work Dance
Interpretation, a certificate of authenticity, and unique serial number
engraving at the back of the device.

also picked up other objects,

messed up some parts of the
ring, and moved as though he
was experiencing something
delightfully macabre.
The scene was interrupted by the entrance of Mr. Cabrera. With a white painted
face, he drove away the two
performers using incense
sticks. Alone in the ring,
the artists gave the incense
to the audience members
and motions them to plant
the sticks on the coir ring.
Then, he performed tai chi,
a meditative exercise hes
been practicing for around
30 years.

BENCAB PERFORMS

BENCABS INSPIRATION

The performance was held

on Jan. 9, but for those who
missed it, the exhibit includes a video of Mr. Cabreras performance. One can
also see the remnants of the
performance in the form of
the marks that the performers left on the coir ring.
The first to enter the coir
ring wasnt Mr. Cabrera,
but two other performers
clad in black, one wearing
a skull mask and one with
a black cloth covering his
face. The one with the black
cloth held a pail of red liquid,
and, as the two approached
the ring, the other picked
up one of the masks on the
coir ring, dipped it into the
pail, and dropped the bloody
mask back on the ring. The
skull-masked performer
BENCAB with guests standing in front
of his 27-foot sketch Nude Scroll.

Art&Culture
BenCabs phone

Mr. Cabrera studied Fine

Arts at UP, and, in 2009, UP
gave him an honorary doctorate. He has represented
the Philippines in biennales in Tokyo and Paris, and
worked in London for 13
years before coming back to
the Philippines in 1986. Currently living in Baguio City,
Mr. Cabrera co-founded the
Baguio Arts Guild in 1987,
and, in 2009, he opened the
BenCab Museum, which
exhibits his collection of
Philippine contemporary
art and materials from the
indigenous culture of the
Cordillera.

is an accomplished
artist who has also
been exhibited at the
Cultural Center of the
Philippines and at St.
Pauls Gallery Columbia University in New
York. Galleria Duemila is
located at 210 Loring St.,
Pasay City.

Sudoku Pacific

Mr. Cabrera said that it was

the call from Mr. Flores, who
requested him to recreate a
performance he did back in
1998, that led to the piece he
performed at UP. The original performance was done
in collaboration with other
Southeast Asian artists while
they were in Bandung, Indonesia for a 10-day workshop
on Urbanization.
Improvisation was involved in the performances
so there are differences
between the Bandung and
the Manila versions. Mr. Cabrera used sawdust instead
of coir in Bandung, and he
did Arnis (a Philippine
martial art) instead of tai
chi. The changes came from
convenience. Coir is easier
to come by than sawdust, and
Mr. Cabrera said hes already
forgotten Arnis but he continues to practice tai chi.
Despite the changes, what
remains is the idea behind
the piece. The artist said the
coir represents destroyed
forests with the random
pieces of trash represents
the urban environment. The
first two performers are like
demons while he is the one
who drives them away and
brings in calm.
Though performance art
is something that Mr. Cabrera doesnt normally do, the
ideas behind the piece relate
to the issues that he tackles
in his paintings and prints,

Crossword

FORMAL ELEMENTS, an exhibit of works by Irma Lacorte, is on view

at Galleria Duemila until Jan. 30. The exhibit features a series of pencil
drawings on circular 122-centimeter wood panels prepared and coated
with emulsion and gesso. Here, Ms. Lacorte works with amassed images
from old coffee table books and reverts to the basics of image making
by isolating or expanding line, texture, form, and tonal value. Ms. Lacorte

HK exhibit focuses on PHL composer

As part of Asia Art Archives (AAA) 15th anniversary program

15 Invitations, Hong Kong-based curator Inti Guerrero
presents an exhibition of his research on the work of Filipino
experimental musician and composer Jos Maceda (19172004). Mr. Guerrero looked into the documentation of
Udlot-udlot, the 1975 large-scale sound performance of
Macedas composition, from AAAs The Chabet Archive. The
performance involved thousands of participants seizing
public space and mass media during the martial law years in
the Philippines. In the exhibit, Mr. Macedas work is placed in
dialogue with video pieces, short films, and artifacts by Pio
Abad, Anand Patwardhan, Jan vankmajer, and Koki Tanaka.
Notes and reflections on his research are recorded in AAAs
blog, providing unique insight into his curatorial process. The
exhibit is on show at AAA Library until Jan. 23. The program
will be available online afterwards.

ACROSS
1 Prepares for war
5 Indiana team
11 Miami team
12 Mideast peninsula
13 Covet
14 Avaricious
15 One of the Stooges
16 Free of fat
17 Prepped
19 Potential pipe
22 Minor blunders
24 Humiliate
26 Pleasant
27 Diabolical
28 Crooked
30 Oliver of Huff
31 Neon or helium
32 Coral island
34 Small cut
35 Debt reminder
38 Fly high
41 Brooklyn team
42 Hang around
43 Pennsylvania port
44 Los Angeles team
45 Cold War side

BENCAB SCALED UP

Aside from the performance

art piece, the exhibit focuses
on Mr. Cabreras large-scale
drawings and inter-media
works, which include a 20foot unfinished drawing and
a 27-foot drawing of nudes.
Gestures and Nuances,
Mr. Cabreras unfinished
drawing, is something that
he started in 1993. Asked
why the drawing remains
unfinished, Mr. Cabrera said
hes just taking his time. He
quipped that if film director Kidlat Tahimik can have
a film that was 35 years in
the making then he can do
something similar.
The drawing of nudes,
entitled Nude Scroll, features six models each doing
several poses. In total, there
are around 60 figures, and
they are all drawn from life.
Every time a model would
come in, Id unroll the scroll
and add another drawing,
said Mr. Cabrera.
These nudes are a
manual of technique and
variation, added curator
Mr. Flores, explaining that
in these drawings one can
see Mr. Cabreras ability to
convey the sitters character,
to capture fleeting moments,
and to suggest the mental
state of the sitter.
The exhibition at the first
floor galleries of Vargas Museum, Roxas Avenue, Quezon
City, runs until Jan. 29. The
museum is open Tuesdays to
Saturdays from 9 a.m. to 5
p.m. The next exhibit under
BenCab 50 Creative Years
will be Appropriated Souls:
Larawan & Sabel, an exhibit
showcasing BenCabs Larawan series and Sabel series
at the National Museum in
February. For details, e-mail
BenCab50@gmail.com.

Complete the grid so that every row, column

and 3x3 box contains every digit from 1 to 9 inclusively.

1/13 DIFFICULTY RATING

Duemilas first 2016 show

said Mr. Flores. He noted

that issues such as social
inequality and living in the
city can even be related to
the original impulse behind
Sabel, the scavenger that became Mr. Cabreras subject
in many paintings.

TUESDAYS PUZZLE ANSWER

By Thomas Joseph

DOWN
1 Attention getter
2 Gambling city
3 Dallas team
4 Messy room
5 Called to the phone
6 Orderly displays
7 James of The Godfather
8 Subside
9 Umbrella part
10 Put into words
16 Vegas
18 Fencing sword
19 Cleveland team
20 Leave out

TUESDAYS ANSWER

21 Karate award
22 Unexpected problem
23 Maggies sister
25 Plutos domain
29 News-man Cronkite
30 Poker prize
33 Layers

2016 Universal Uclick

34 Cooking mint
36 Singer Redding
37 Manual reader
38 Maximum amount
39Through
40 Squids squirt
41 Fresh, in France

1-13

8/S2

EDITOR ALICIA A. HERRERA

WEDNESDAY, JANUARY 13, 2016

How to get your bedroom into the Met Museum

4
1
8
By James Tarmy Bloomberg

A DRESSING ROOM, i.e., a large

closet devoted explicitly to the
putting on and taking off of clothing, has just gone on permanent
display at the Metropolitan Museum of Art (Met) in New York. The
room, labeled the Worsham-Rockefeller Dressing Room after its
two previous owners, is a dizzying,
gilded-age assemblage of competing wallpaper patterns, woodwork,
and metal ornament.
Still.
The Met has one of the largest
and most important collections of
art in the world: Why did a dressing room end up migrating from a
house slated for demolition on West
54th Street to a museums hallowed
halls? And what, for that matter, did
every owner of the three-dozen period
rooms do to get their homes on display?
By narrating the history of the following rooms, three of the Mets curators have helped supply an answer to
what it takes to get your bedroom into
the Met.

10

1. LUCK

The Worsham-Rockefeller Dressing Room: Commissioned in 1881 by

Arabella Worsham, the wife of a railroad baron, and later sold to John D.
Rockefeller, who lived in the house
for the better part of 50 years, the
dressing room was first installed
in the Museum of the City of New
York. When that museum offered
it to the Met, we were just finishing the multi-million dollar redo
in the American Wing, said Alice
Cooney Frelinghuysen, a curator
of American decorative arts. The
idea of taking another period room
was kind of crazy. They discovered,
however, that an unused, interior
fire stair had the exact proportions
within half an inch, said Ms.
Frelinghuysen of the dressing
room. So after a years worth of conservation and documenting everything within an inch of its life,
she said, the room was installed.

2. GOING BROKE

Room from the Hart House: Not

for broke. Actually broke. In the
1920s, curators really wanted the
room, said Amelia Peck, curator
of American decorative arts. They
asked the family at the time who
owned it if theyd be willing to sell,
and they said no they were using
it as a tea room, for people to come
have lovely colonial teas. Then the
global depression of the 1930s hit,
and the family discovered that there
was not, it turned out, a sufficient
market for lovely colonial tea to sustain their livelihoods. At that point they
were in dire straits, and they sold it, Ms.
Peck said. They were in the Great Depression and the room was a commodity. The house, located in Ipswich Mass.,
still stands.

3. GOING SHOPPING

Boudoir from the Htel de Crillon:

In 1906, Jeanette Dwight Bliss, wife of
wealthy New York banker George T.
Bliss, began to build a mansion that still
stands on East 68th Street. She went to
Paris to look for interior decoration for
her new house. At the time, the Htel de
Crillon was a private mansion in central
Paris owned by the Ducs de Polignac. She
bought it right out of the building, said
Danille Kisluk-Grosheide, a curator of
European decorative arts. She must have
walked right in there. Blisss architect
was very precise, said Ms. Kisluk-Grosheide. Its not ripping it out of a room,
its carefully taking out the paneling. In
1942, in turn, Blisss unmarried daughter
Susan downsized; instead of selling the
room, she donated it to the Met.

ALL PHOTOS FROM BLOOMBERG_THE METROPOLITAN

MUSEUM OF ART, NEW YORK

4. TRYING TO TURN IT INTO A PARKING LOT

Parlor Stairhall from the Metcalfe

House: By the 1970s, the Metcalfe house,
a charming 1886 gabled structure in Buffalo designed by the renowned firm, McKim Meade and White, had fallen on hard
times. The times, however, were about
to get a whole lot harder. A company
bought the building to tear it down and
turn into a parking lot, said Ms. Peck, the
curator. Preservationists protested, and a
compromise was reached: The company
would get its parking lot, but the house
was taken apart, and we got the stair hall,
Ms. Peck said. I think other Buffalo institutions kept parts of it, too.

5. GETTING IN TROUBLE
WITH THE ZONING BOARD

Living room from the Little House:

The owners of this stunning house designed by Frank Lloyd Wright felt it was
unlivable, said Ms. Peck. But because of
zoning, they werent allowed to build two
buildings on the same property. Faced to
weigh quality of life with architectural-

historical martyrdom,
the family opted to tear
it down, Ms. Peck said. The Met Museum,
alarmed by the potential obliteration of
an architectural treasure, stepped in and
actually bought the building. We took it
apart, kept the living room for ourselves,
and were able to place two other rooms
with other museums, Ms. Peck said.

6. POVERTY, AGAIN!

Dining room from Kirtlington Park:

When we bought the dining room, it was
still privately owned, said Ms. KislukGrosheide, though not in the hands of
the original family. In 1931, the Met was
on the hunt for period rooms for its new
wing, where its English galleries would
be housed; the dining rooms owner, who
had also fallen on hard times, offered to
sell it walls, floors, ceiling, ornament,
and chandeliers to the Met, which
happily obliged. The room, therefore, is
maintained in the exact dimensions and
condition that it had been in situ.

7. EXISTING IN BALTIMORE

The Baltimore Dining Room: A lot of

these rooms had been through multiple
owners by the time they got to us, said

Ms. Peck. And some of them had transitioned from very lovely residential neighborhoods into... something else. This
room, which the Met purchased with
its original woodwork intact, had been
turned into some kind of workshop, Ms.
Peck says. Some of these houses werent
even being used as houses.

8. EXISTING ON BERKELEY SQUARE

The Lansdowne Dining Room: Designed by Robert Adam on the Southwest

corner of Berkeley Square in London, the
Mets text noted that the building had
the dubious distinction of belonging to
two of the most unpopular British statesmen of the eighteenth century. It had
the similarly dubious and yet infinitely
more dire distinction of being in the way
of the municipal government, which was
changing Berkeley square, Ms. KislukGrosheide said. The dining room, in turn,
was slated to be ripped down, but the
Met stepped in and saved it, she said.

9. BECOMING A TOOL OF THE FRENCH

REVOLUTION

Boiserie from the Htel de Varengeville: The French period rooms are
very beautiful and contain some of the

most spectacular pieces of French decorative arts outside of France, but theyre not
complete rooms, said Ms. Kisluk-Grosheide. The fabulous paneling came from
aristocratic homes inside Paris including the paneling above but most of the
furniture came from royal situations.
And by situations, Kisluk-Grosheide is
referring to the decapitation of Marie Antoinette and her husband, Louis XVI, and
the subsequent fire sale of royal possessions to fund the fledgling French republics war budget. Kind of a luxury problem
to have, that the furniture is grander than
the rooms, but there you are, she said.

10. DEATH

Room from a hotel in the Cours

dAlbret: We have two rooms given
by the Strauses, who were descendants
of the founders of Macys department
store, said Ms. Kisluk-Grosheide. They
began to build a beautiful house at 9 East
71st Street, but Mr. Straus died in 1933.
A distraught Mrs. Straus couldnt see
herself living in the house, Ms. KislukGrosheide said, and so donated the
paneling including the lovely, handcarved panels from a hotel theyd bought
in Bordeaux, France.

Contemporary art explained in lecture series

IN CELEBRATION of Art Month, the
Ateneo Art Gallery will hold a series of
lectures on contemporary art.
Professor Tony Godfrey will explore
the art of our time for seven evenings
in February at the Ateneo Professional
Schools in Makati City.
The lectures and discussions will
cover the different movements that
have emerged since the 1960s, the artists that defined these movements,
and the different art forms that are

currently seen in exhibitions, art fairs

and biennials.
The lectures, which will be held
from 5-8 p.m. at the Blue Room of the
Ateneo Professional Schools, 20 Rockwell Drive, Rockwell Center, Makati,
are as follows:
Feb. 3: When did Contemporary Art
start? What was wrong with Modernism? The lecture will cover the work
of Jackson Pollock, Jasper Johns, and
Andy Warhol.

Feb. 9: What is Conceptual Art? Why

did it matter? The lecture will cover the
work of Bruce Nauman, Joseph Beuys,
and On Kawara.
Feb. 10: Photography, video and
other media from 1980 to 2010. The
lecture will cover the work of Bill Viola,
Jeff Wall, and Hirosho Sugimoto.
Feb. 11: Sculpture & Installation art
from 1977 to 2010. The lecture will cover
the work of Richard Serra, Anthony
Gormley, and Anne Hamilton.

Feb. 16: Painting from 1980 to

2010. The lecture will cover the work
of Gerhard Richter, Luc Tuymans, and
Marlene Dumas.
Feb. 23: Art Today
Feb. 24: Painting Today
The course fee is P5,600 for seven
lectures, and P1,000 for one lecture.
Mr. Godfrey has been working in the
contemporary art world since 1978 as
teacher, writer and curator. For many
years he ran the MA (Contemporary

Art) at Sothebys Institute London.

1995-2005. He has also taught in many
art schools and universities and has
written a number of books on art including New Image in Painting (1986),
Painting Today (Phaidon, 2009), Drawing Today (1991) and Contemporary Photography in Asia (2013).
For details on the course, e-mail
rtalamayan@ateneo.edu or call the
Ateneo Art Gallery at 426-6488. Slots
are limited.

VOL XXIX ISSUE 118 ISSN0116-3930

Wednesday, January 13, 2016
In partnership with
Brought to you by

The Financial Times Limited [2012]. All Rights Reserved. Not to be redistributed, copied or modified in anyway. (The client) is solely responsible for providing this translated content and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation.

Looking for clues

By Tom Mitchell
and Gabriel Wildau

Heavy stock falls have underlined just how central China is

to global markets.
Yet as international investors crave more transparency,
doubts have been raised over
the party-states financial management.
Chinas market regulator had
a chance to explain itself last
Friday at the end of a week that
had seen self-inflicted turmoil
on the countrys stock exchanges rock international markets
for the second time since July.
Amid complaints that global
markets which had their worst
start to the year for two decades
needed more guidance on
Chinas intentions, there were
also rumors that Xiao Gang,
chairman of the China Securities Regulatory Commission
(CSRC), could lose his job.
Rather than address either
subject, however, the CSRC
instead used the weekly press
conference to discuss its role
in a Communist party initiative
to promote development of the
agricultural sector and poverty
alleviation.
To global investors, who increasingly take their daily trading
cue from Chinas economic data
and market moves, the response
to the turmoil looked farcical.
To Chinese investors, it passed
for governance as usual in the
worlds second-largest economy.
The market turmoil, exacerbated by a shift in the Chinese
central banks management of
the renminbi, begs the question
of whether the opaque partystate is fit for purpose when it
comes to managing one of the
worlds most pivotal financial
markets and delivering the level
of transparency expected by the
international community.
It has also raised doubts about
whether the team assembled
by President Xi Jinping, who
has consolidated power more
rapidly than any Chinese ruler
since Deng Xiaoping in the
1980s, is capable of executing the countrys much larger
reform program of which
market regulation and currency
policy are just two parts.
For all their faults, Xis predecessors consistently gave domestic and foreign investors confidence that over time, there would
be more space for markets and
the private sector, argues Arthur
Kroeber at Gavekal Dragonomics, a Beijing-based consultancy.
Xi has failed to live up to this
history At the most basic level,
we have no idea whether he
understands what modern markets require, or how he proposes
to reconcile their demands with
the Leninist-Confucianist paternalism he is imposing on the
rest of society.
Even analysts at state-owned
banks were left scratching their
heads.
Because of Chinas lack of
policy communication over the
path towards the new-float regime exchange rate flexibility
has become a major source of
uncertainty, rather than a cushion against external shocks,
CICC analysts Xiangrong Yu
and Hong Liang wrote last week.
The renminbis fluctuations
could raise risk premiums over
the global market, leading to
sizable asset reallocation and
complicating the US decision to
hike interest rates.
Grip
The day before the CSRC
briefing, a disastrous new circuit breaker championed by

Mr. Xiao had stopped trading

for the day after just 29 minutes.
But state television did not
mention either the crash or
the days other big news the
global jitters stemming from
the renminbis rapid depreciation against the US dollar.
Instead China Central Televisions main evening bulletin led
with Mr. Xi chairing a meeting
on the development of a Yangtze river economic zone and
visiting the Peoples Liberation Armys 13th Group Army
in Chongqing. There he lauded
tales of Red Army soldiers
heroism and sacrifices under
their revolutionary hero, Mao
Zedong.
It vividly shows what it
means to follow the party with
an iron heart, he said.
Such discipline, according to
Mr. Xi, also involves knowing
when to keep your mouth shut.
In November, the party issued
guidelines barring its 88 million members from improper
discussion.
Newspaper editors, professors and police chiefs have since
been sacked for not toeing Mr.
Xis line on issues as diverse as
the partys handling of ethnic
unrest in the region of Xinjiang
and pro-democracy protests in
Hong Kong.
To address these sorts of
challenges you want a society
thats debating, discussing and
charting a path towards resolution, says Rodney Jones at
Wigram Capital, an economic
advisory company.
You want engagement. But
no one in China can discuss
[the countrys challenges] apart
from a selected few.
Vacancy
Unlike his predecessors, Mr.
Xi does not have a standout financial or economic tsar with
clear authority.
The man with the richest
financial and economic experience at the top of the party hierarchy, Wang Qishan, has been
diverted to lead the presidents
signature anti-corruption campaign.
Party rule has always been
the number one priority we all
know that but under Xi Jinping
the distance between the political agenda and the economic one
has widened, says Andrew Polk,
Beijing-based economist for the
Conference Board.
I think thats reflected in the
fact there isnt an economic
heavyweight.
Responsibility for the economics brief nominally falls to
Premier Li Keqiang.
But in terms of economic experience he pales in comparison to the likes of Zhu Rongji,
who drove through landmark
reforms as vice-premier and
premier in the 1990s.
Mr. Lis predecessor, Wen
Jiabao, was similarly inexperienced but at least had Mr.
Wang serving under him as a
vice-premier.
By contrast, the most senior
of Chinas four current vicepremiers is Zhang Gaoli, known
for his borrow-and-build now,
repay later approach to economic development while party
boss in the port city of Tianjin.
One of Mr. Xis top aides, Liu
He, is often cited as being one
of the countrys most powerful
economic officials. However, he
only sits on the Central Committee the fourth-highest
party organ while his official
government title is vice-minister at the National Development and Reform Commission,
Clues, S3/2

AFP

The Internet goes toll-free with Safezone

Conducting business on the World
Wide Web has become more than
trend it is now an integral part
of many organizations operations
given the ever growing and unceasing
number of people present online. The
Internet as a commercial channel is
not limited to online shopping either;
providing information on products
a nd s er v ic e s t h rou g h c ompa ny
websites are already a big part of
bringing ones business digital.
However, the ability of customers
to reach their business of choice, and
vice versa, can be limited by budgetary
constraints. Because accessing and
doing business on mobile sites and
applications eat up data allocation and
incur charges, customers are wont to
do things the traditional way instead.
Recognizing this, PLDT, through its
Wireless Segment Digital Mobility
in SMART Enterprise, has recently
launched a groundbreaking platform
that provides enterprises with a new
digital touchpoint to connect with
their customers.
Safezone is a toll-free mobile internet
service that enables enterprises to
ma ximize t heir reach by letting
customers connect to their company
online at any time and from anywhere
for free. With Safezone, SMART and
SUN subscribers can now securely use
the mobile apps of their chosen brands
or access their websites without the
usage being charged to their mobile data
buckets or electronic load wallets.
With more and more people using
their mobile phones and gadgets for
various aspects of their lives, be it to
shop or pay bills or simply to get the
latest news, its important for enterprises
to enhance their online presence to
take advantage of this shift, said Nico

Alcoseba, Head of PLDTs Disruptive

Business Group, Safezone enables
enterprises to streng then brands
and enhance customer connections,
while providing these same customers
with the cost efficiency and security
they want to experience when doing
business online.
The Safezone platform provides
a range of benefits for a wide array
of industries. Banking and Finance
institutions, for example, would be able
to encourage more customers to attend
to their banking needs from a mobile
website and/or mobile app. This not
only enables to customers to finish their
banking-related errands faster; banks
can also free up room in branches to
accommodate more transactions.
Looking for the best travel deals
on l i ne c a n be t i me- a nd d at aconsuming. With Safezone, the travel
and tourism industry will be able to
provide travelers with a secure way
to check for best deals for f lights
and accommodation and close deals
without worry from heavy data charges.
Entertainment and communications
companies now also have an alternative
way to reach their audience beyond the
traditional television and set-top box
setups. With Safezone, their audience
can access entertainment and news with
the click of an app any time and from
anywhere.
Sa fezone enables enter prises
to always be connected with their
customers, shared Chet Alviz, AVP &
Head of Digital Mobility. And with
todays highly mobile market, staying
connected and top of mind among your
customers is necessary to strengthen
business competitiveness.
To know more about Safezone, visit
enterprise.safezone.ph.

With more and more people using their mobile phones and
gadgets for various aspects of their lives, be it to shop or pay bills
or simply to get the latest news, its important for enterprises
to enhance their online presence to take advantage of this shift.
Safezone enables enterprises to strengthen brands and enhance
customer connections, while providing these same customers with
the cost efficiency and security they want to experience when
doing business online.
Nico Alcoseba

Head of PLDT Disruptive Business Group

advt

This advertisement has been placed by BusinessWorld

S3/2 Wednesday, January 13, 2016

The Financial Times Limited [2012]. All Rights Reserved. Not to be redistributed, copied or modified in anyway. (The client) is solely responsible for providing this translated content and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation.

A vast bureaucracy tries

to get back on track
By Henny Sender

When Suresh Prabhu became

the Indian railways minister
just over a year ago, he inherited an empire with 1.3 million
staff and even more pensioners;
tracks that stretch for the equivalent of one and a half times the
circumference of the globe; and
21,000 trains.
Sadly for both Mr. Prabhu and
his country, such remarkable reach
Chinas Peoples Liberation
Army is one of the few bodies that
has more workers comes with a
notorious bureaucracy attached.
It took 18 months, for instance,
to decide whether the mugs in
the washrooms of second class
sleepers should be attached to
the wall by chains, while a decision on charging points for mobile phones needs to be made at
the very top of the hierarchy.
Immersed in what amounts
to an organizational case study
of elephantine proportions,
Mr. Prabhu admits the need for
greater speed.
These are the soft issues where
we have to accelerate decision
making, he says.
Many others depend on his
progress.
Only the minister can eliminate such red tape, says Anant
Swarup, the wonderfully titled
Executive Director, Public Grievances to Minister of Railways.
If India is to get its economic
act in order, and Prime Minister Narendra Modis Make in
India campaign is to become
reality rather than just rhetoric, India will need to improve
its infrastructure.
But no area is in more need of
improvement than the railways.
One of the principal reasons
Indian manufacturing lacks
competitiveness is because of the
shortcomings of its transport network. A World Bank study notes
that logistics expenses in India
are two to three times higher
than its assessment of what they
should be. The countrys 8,000
freight trains travel at an average speed of only 25 km. an hour
and customers have to pay some
of the highest fees in the world,
partly because they are meant to
subsidize passenger lines.

Make in India can accelerate

the growth rate and can change
the profile of growth, Mr. Prabhu
says.
We have to increase efficiency
and reduce costs.
The railways finances are in
bad shape because 55% of the
revenues go to its staff in the form
of wages and benefits (up from
36% five years earlier) and 62%
of recent projects had a negative
rate of return.
There has been a trend of
over-promise and under-delivery, Akshay Soni, a Morgan
Stanley analyst, noted recently,
arguing that change could now
be on the way following Mr.
Prabhus arrival.
He has brought fresh thinking
to a relatively moribund railway
ministry which in history has
primarily been used to dispense
political largesse.
I n d e e d , i n c o n t r a st w i t h
previous ministers whose first
action was usually to build
resplendent stations in their
home constituencies, Mr. Prabhu notes that nobody can tell
where I am from.
One of Mr. Prabhus priorities is
to cede power by decentralizing
decision making and granting
more authority to those below
him, something rare in the subcontinent. Less government and
more governance is one of his
favorite mantras, a refrain that
can also be heard from the lips of
his boss, the prime minister.
Nevertheless, he faces a daunting task. In a recent white paper,
the minister noted: In an earlier era, the Indian Railways have
been described as imperium in
imperio, an empire within an
empire. Since that time, the
empire has been in decline, almost terminally.
For todays visitors, there are
few visual signs that time has
moved on much, other than the
flat-screen television and computer screens on Mr. Prabhus
desk. A wooden signboard with
a list of ministers going back to
the Raj hangs behind it. A steady
stream of sycophants, well-wishers and others wait patiently for
their turn with the minister.
Like most government officials,
Mr. Prabhu and his staff usually wear Indian garb rather than

western-style suits. Although not

very impressive when addressing large audiences, with a small
group he conveys a passion and
urgency that is rare in a country
where most officials emanate a
sense of complacency.
But then there is little room
for complacency when it comes
to his domain. The system has
been starved of investment for
decades. In 1951, Indian Railways
was 2.3 times larger than Chinas
system. Since then, though, the
situation has reversed. Chinas
railway is now 1.6 times the size
of Indias, which has expanded a
mere 21%.
Mr. Prabhu plans an ambitious
program to reverse these decades
of neglect.
The Indian railway is a giant
emerging out of deep slumber,
he wrote in the white paper. Between this year and 2019, he plans
to spend more than $130 billion,
significantly greater than the $34
billion that the railways ministry
spent in the preceding five years.
Much of that money will be divided evenly between expansion
of the network and decongesting existing lines.
To fund his program, Mr. Prabhu is not content to simply rely
on the largesse of the Ministry of
Finance. He has embarked on unusual debt initiatives, raising $25
billion from Life Insurance Corporation of India, a state-owned
insurer, for a 30-year financing,
with a five-year moratorium on
interest payments, a period that
is far longer than any bank would
offer. He has a commitment from
the World Bank for another $30
billion loan. He has signed agreements with power providers to
cut the railways utility bills. He
plans to sell railway stations and
the development rights around
them to the private sector.
If anyone is interested, let
them approach me directly,
he says.
For years, a dedicated freight
corridor from Delhi both to
the west and to the east has
existed on paper but not on
the ground, the minister says,
noting that making it a reality
will require the largest railway
infrastructure project.
Orders placed for new locomotives and equipment, and

Fund recognized the renminbi

as an official reserve currency
under its special drawing rights
(SDR) regime.
If its path to SDR inclusion
was bumpy the renminbi has
had an even rougher ride since.
In August, the PBoC announced
a one-off 2% devaluation in a
move aimed at making the currency more market driven a
key condition for SDR status.
Many international investors
interpreted the move as the first
shot in a new currency war and
it took two days for the central
bank to brief the media to calm
the situation. By then the damage
had been done, with global markets tanking and selling pressure
on the renminbi intensifying.
Over the rest of 2015, the central bank used hundreds of billions of dollars from the countrys
foreign exchange reserves to slow
the renminbis depreciation.
But within weeks of winning
SDR approval and with the cost of
supporting the currency unsustainable, the PBoC signaled that
investors should instead focus
on the currencys performance
against a basket of 13 currencies.
Before that message had been
fully absorbed, the central bank
stepped back and watched as the
renminbi fell 1.5% against the
dollar in the first week of trading

in January a sharp fall for the

carefully managed currency that
again scared Chinese and international investors alike.

AFP

a planned improvement in
passenger service, could create many manufacturing and
service jobs at a time when the
private sector is not investing.
Both Alstom and GE have received contracts to build locomotives in the depressed state
of Bihar.
Mr. Prabhu has also worked out
an agreement with Japan International Cooperation Agency,

the Japanese aid body, to finance

the dedicated freight corridor between Delhi and Mumbai along
the west of the country, and has
enlisted the Japanese to build
a high-speed rail line between
Ahmedabad in prosperous Gujarat and Mumbai.
It is ironic that even as he
devolves power, he himself has
become the key risk factor to
outsiders. It is imperative that

Suresh Prabhu stays in office long

enough for his thought process to
be institutionalized, Mr. Soni of
Morgan Stanley notes.
On a recent visit to New Delhi,
Jeff Immelt, GE chairman,said
he had been involved five times in
bidding on a program to modernize the Indian rail network.
This is the first time I
actually think its going to
take place.

Clues,

from S3/ 1
the former state planning agency.
This makes Mr. Liu more of an
influential adviser to the president than a power broker in his
own right.
The impression of a vacuum
at the top in terms of economic
leadership was reinforced by the
degree to which the central banks
new currency policy seemed to
exacerbate the selling pressure
on the countrys stock market.
In the summer, the CSRC
and the Peoples Bank of China
(PBoC) managed to spark, respectively, a market crisis in
July and currency confusion in
August; last week the two institutions contributed to a market and
currency panic on the same day,
Jan. 7.
In other economies, markets
can at least look to independent
and powerful central banks for
direction in times of crisis.
But the PBoC and its governor,
Zhou Xiaochuan, have nothing
like the independence and power
of their international counterparts and have been humbled
over the past week. The PBoC
reports to Mr. Lis state council.
Mr. Zhou, who turns 68 later
this month and has been in
charge of the PBoC since 2002,
secured one of the biggest prizes
of his career in November, when
the International Monetary

Need to do better
Joe Zhang, a veteran financial
executive, argues that the PBoC,
for years a proponent of renminbi
strength against the dollar, didnt
appreciate how its adjustment
would be interpreted abroad.
The global reaction to
Chinas tinkering of the currency in August was dramatic
and that caught Beijing by surprise, he says.
They thought a 2% adjustment
wasnt a big deal. They hadnt anticipated the reaction.
That could, in turn, curb the
drive for reform. While Hao
Hong, chief China strategist at
Bank of Communications International, thinks that Chinese
policy-makers need to proceed
slowly with capital-account
reform given the risk of capital
flight, he also believes that they
erred by missing the opportunity
to do it earlier, when depreciation and outflow pressures were
much weaker.
Its a matter of timing, Mr.
Hong says.
When the renminbi is substantially overvalued [and] the
property market is substantially

Central characters

In March 2013 Li Keqiang, 60,

became premier of a government that had sailed through
the global financial crisis,
winning plaudits for refusing
to devalue the renminbi and
launching a Rmb4-trillion
stimulus that boosted global
demand. Mr. Lis administration set a new course to correct
the excesses of the creditfueled stimulus as China adjusted to a new normal of
slower growth.
Wang Qishan, 67, has played
a key role in almost all of Chinas financial reforms over the
past 20 years. A tough, acerbic
overvalued, people want to get
out of here If you reform now,
it will give people the impression
that you are losing control.
By the end of last week, the
PBoC sounded as tone-deaf as
the CSRC. It initially blamed
speculative forces for the renminbis recent falls against the
dollar and rounded out the week
with a long review of the fruitful
results it had achieved under
the leadership of the party and
the state council.

character reminiscent of his

mentor, former premier Zhu
Rongji, Mr. Wang was the point
person for Chinas annual Strategic and Economic Dialogue
with the US, before being promoted to the Politburo Standing Committee in 2012 to lead
the anti-corruption campaign.
Liu He, 63, is a vice-minister
for the National Development
and Reform Commission but
his influence stems from his
close ties to President Xi Jinping, who asked him to run the
general office of the Communist partys leading group for
financial and economic affairs.

Some party and government

officials recognize that China
now has a public relations problem when it comes to financial
policy and are working to remedy
the deficiency.
In a rare background briefing
for foreign media last month, one
senior government official admitted that there is a need to do a
better communication job with
the rest of the world [because]
what we do really affects the rest
of the world.

Mr. Liu was one of millions of

sent-down youth dispatched
to the countryside during the
cultural revolution.
Zhou Xiaochuan, 67, has
been a fixture on the global
central bankers circuit since
taking charge of the Peoples
Bank of China in 2002. He is
the institutions longest serving governor. Like Mr. Xi and
Mr. Wang respectively, Mr.
Zhou was born into Beijings
princeling class of secondand third-generation party
leaders. He is expected
to step down from his
post in 2016-17.
But progress is slow.
Some people within the central bank say, Listen, we need to
get better at communication but
its really hard based on the way
we make policy, says Mr. Polk at
the Conference Board.
Then you have other people in
the PBoC who say we dont necessarily need any more transparency.
So the message is all over the place
even in terms of whether or
not there should be better
messaging.

EDITOR FRANCISCO P. BALTAZAR

WEDNESDAY, JANUARY 13, 2016

World Business

Electric cars in US: More

options, fewer sales
DETROIT Automakers have introduced more zero-emission vehicles
than ever before, but US consumers are
increasingly bypassing them in favor of
larger vehicles made more affordable by
cheap gas prices.
New car sales in the US came in at a record 17.5 million in 2015. Yet sales of electric
and hybrid vehicles dipped to just 116,500,
only 0.7% of the overall market.
In contrast, sales of sport utility vehicles,
pickup trucks, crossovers and other large
vehicles reached new records, as oil prices
slumped to multi-year lows.
Gasoline prices are currently about
a fourth of their level in 2008, shortly
before Barack Obama was elected
president.
In 2009, Mr. Obama raised the fuel
economy standard to 35.5 miles per
gallon (6.63 liters per 100 kilometers) in
2016. In 2011, Mr. Obama got even more
ambitious, raising the average to 54.5
miles per gallon in 2025.
Since that time, automakers have
introduced about 30 electric or plug-in
hybrid vehicles.
In some cases, as with the Volvo
XC90, named the North American car
of the year, car makers have offered
a plug-in hybrid model in addition to
conventional designs.
Electric cars are coming to the US
because of policies to cut emissions, not
because of spontaneous demand, Nissan Chief Executive Carlos Ghosn said.
Nissans Leaf, which sold 17,000
last year, is second among electric car
models sold in the US to Teslas Model S
with 24,000.
Mercedes-Benz has introduced six
plug-in hybrids and plans 10 by 2017,
said Daimler Chairman Dieter Zetsche.
Obviously in the short term, the
development on the regulatory side on

S3/3

THE 2017 HYUNDAI Genesis G90 is unveiled at

the North American International Auto Show
in Detroit, Michigan, on Jan. 11.

the one hand and the consumer demand

on the other side is more diverging than it
was before, and obviously fuel prices play a
major role in this regard, Mr. Zetsche said.
On the other hand, I think we all
agree that the long term direction is
electric.
RETREAT FROM ELECTRIC?
Some in the industry say policy makers
must also consider tax incentives to promote electric cars.
Generous incentives in Norway lifted
electrics market share in that country
to 17.1%.
You need tough targets on one
hand, and encouraging incentives on the
other hand, said Ian Robertson, head of
sales at BMW.
If you dont have the two things,
then its a real challenge.
Mr. Robertson dismissed speculation that Washington will retreat from
the tough fuel economy standards,
even if Republicans win the presidency in 2016.
The US standards are here to stay,
Mr. Robertson said, in part because
Europe and China have also enacted
tough fuel economy standards.
Also arguing in favor of the standards: A December agreement led by
the United Nations among 195 nations
to reduce emissions in response to
climate change.
If all the automakers are making
electric cars, its because there is no
other solution for limiting emissions,
Mr. Ghosn said
We think long term, electrification
is part of the solution, said Mary Barra,
chief executive of General Motors, which
last week announced plans to build the
Chevrolet Bolt, an electric car aimed at
the mid-price market. AFP
REUTERS

THE VOLKSWAGEN BUDD-e electric vehicle

REUTERS

Hyundai aims to set benchmark

for luxury with Genesis brand
DETROIT Hyundai is reaching for the top in launching a new
luxury brand, Genesis, which
aims to replicate the success of
Japanese rivals while redefining
the customer experience.
The Korean automaker unveiled its flagship sedan, the G90,
at the Detroit auto show on Monday that was designed to compete
with the top offerings of storied
brands like Mercedes and BMW
by offering best-in-class performance and features.
We are applying ourselves to
entirely new objectives to set the
benchmark for luxury, Hyundai
Vice-Chair Eui Sun Chung said at
the brands US launch.
With Genesis we will strive to
meet the desire of a new generation of luxury customer (who)
value unique experiences over
mere status.
The bold move comes after
years of studious planning and
work to improve Hyundais
reputation following a disastrous initial entree into the US
market in 1986 with the poorly
built Excel.

Hyundai addressed its reputation for poor quality by vigorously

improving its production standards and introducing a 10-year
warranty program in 1999.
It launched its first luxury sedan the Genesis shortly before US car sales collapsed to the
lows not seen in decades in the
wake of the 2008 financial crisis.
Hyundai managed to expand
market share during the downturn
through clever marketing that included a promise to buy back a
customers car if they lost their job
within the first year of purchase.
It also won accolades for the
Genesis, including the muchcoveted car of the year award at
the 2009 Detroit auto show.

SIX GENESIS MODELS BY 2020

But despite all that hard work,

Hyundai has still not shed its
reputation as a cheaper alternative, said Jack Nerad, an analyst
at Kelley Blue Book.
What theyre limited by is
thats just a Hyundai the perception of thats what the brand is, he
said in a telephone interview.

The current Genesis sedan

its a very good value, but has not
resonated well sales-wise because
people buying luxury want to
have the prestige of the brand.
Separating its premium offerings into a separate brand could
help boost their prestige.
It worked when Honda, Nissan and Toyota introduced their
Lexus, Acura and Infiniti brands
in the late 1980s.
Figuring out if this is successful isnt going to be determined by
the first two cars they bring over,
said Stephanie Brinley, an analyst
with IHS Automotive.
Its a long-term play, its having to do it over and over again
and how they build that up.
Hyun dai ann ounced the
Genesis brand in November and
plans to introduce it initially in
the United States, Asia and the
Middle East. It will eventually
expand into Europe as the brand
expands to six offerings by 2020.
Our ability to start fresh in
this new era instead of having
the legacy or burden of what was
in the past means we can start

with something new and invest

more appropriately, said Mike
OBrien, vice-president of corporate and product planning for
Hyundai Motor America.
One way to start fresh is to upend the traditional dealership experience by offering customers valet service so they dont have to sit
around waiting for an oil change.
Instead, someone will pick
their car up from them and drop
it back off when its ready.
It doesnt make sense to invest
tens of millions of dollars into
elaborate showrooms, Mr. OBrien
said, when what todays customers
really value is their time.
Hyundai understands the
challenge of capturing a loyal
Mercedes or BMW customer, Mr.
OBrien told AFP.
Our strategy is for those customers that are just getting ready
to buy a luxury car to give us a
shot, he said in an interview on
the sidelines of the show.
That is going to be our challenge: How do we make a more
appealing shopping environment
so people give us a try? AFP

US cars Lincoln, Cadillac battle luxury rivals via Chinese market

DETROIT Faded US luxury
brands Lincoln and Cadillac are
finding a new cachet in China, a lucrative market that could help power their comeback against German
and Japanese rivals back home.
Ford is banking on this momentum to steal the thunder from Volkswagens Audi, BMW, Toyotas Lexus and Daimlers Mercedes-Benz,
which dominate the US luxury market, when it unveils a new version of
the iconic Lincoln Continental at
the Detroit auto show on Tuesday.
The Lincoln Continental, first
introduced in 1939 and pulled off
the market in 2002, will return
to replace the luxury MKZ sedan
in an updated version equipped
with a six-cylinder, 3.0-liter engine, according to a concept car
presented at the New York auto
show early last year.
The split, winged grill will be
replaced by a single, centered
chrome grill. The car will be offered in front-wheel drive with
an option for all-wheel drive, US
automotive media have reported.
Lincoln also wants to distance
itself from the pack by promoting
its consumer services packaged in
the Lincoln Way program.
We want to tell the story of
the brand, Kumar Galhotra,
president of the Lincoln division,
said in a phone interview.
Clearly, the company wants to
capitalize on the Continentals
prestigious past, when it was the
vehicle of choice for US presidents from the 1960s to 1980s.
The Continental will be marketed in the United States and
China this year, but not in Europe.

STILL COVETED IN CHINA

Both Lincoln and Cadillac, the

premium division of General Motors, are finding their reputations
still have weight in the worlds
largest auto market, China.
Cadillac sold 62,630 vehicles
in China by the end of October,
13.3% up from 2014.
Lincoln, in its first full year
in China, sold 11,630 vehicles in

2015 and already has a network

of 33 dealerships that it plans to
double by 2020.
In the United States, the two
legendary brands also seem to be
regaining some allure.
Sales have grown, stemming
some of the bleeding inflicted by
the crushing domination of the
European and Japanese luxury
brands over the last decade.
Cadillac sold 175,267 vehicles
last year, a gain of 2.6% from a
year ago. Lincoln reported
101,227 vehicles sold, up a solid
7.1%, in line with the luxury markets 7.7% rise.
By contrast, BMW, the top
luxury brand in the US market,
saw sales gain last year by 1.8%, to
346,023 vehicles.
Overall the luxury market is
doing well, said Karl Brauer, an
analyst at Kelley Blue Book.
While luxury cars represent
only 10% of all vehicles sold in the
United States, they generate 50% of
profits because of their large profit
margins, according to analysts.

Both Cadillac and Lincoln

know they need to lure young,
hip, well-heeled customers,
rather than their parents. It is a
challenge: in 2014, the average
Cadillac customer was 59.5 years
old, according to IHS Automotive.
Last year, Cadillac moved
its headquarters to New Yorks
trendy SoHo district in Manhattan, and features this new staging
ground in its advertising.
Polishing its modern image,
the 113-year-old brand became
the first automaker to partner
with New Yorks inaugural mens
fashion week last year.
Cadillac is offering personalized models in each luxury segment, borrowing a successful tactic used by German competitors.
The brand has targeted the
sale of 500,000 vehicles per year
and will create eight new models
by 2020.
Ford meanwhile plans on four
new models and annual sales of
300,000 vehicles by the end of the
decade. AFP

ALL PHOTOS FROM REUTERS

(CLOCKWISE FROM TOP LEFT) A new Cadillac is seen for sale on the showroom floor at the Medved dealer in Denver on Dec.
16, 2015. The Lexus LF-FC concept car; the 2016 Mercedes Benz E-class sedans, which include a plug-in hybrid (foreground),
and; the 2016 BMW M2 Coupe at the North American International Auto Show in Detroit, on Jan. 11

4/S3

World Markets

EDITOR WILFREDO G. REYES

WEDNESDAY, JANUARY 13, 2016

Dow, S&P 500 up in late rebound

THE DOW and S&P 500 ended
a volatile session up slightly on
Monday in a late turnaround,
but a drop in biotechs and energy
shares kept a lid on the market.
The start of earnings season
added to investor nervousness.
The Nasdaq ended lower, led by
a drop in biotech company Celgene, which fell 5.5% to $103.03
following a disappointing profit
forecast.
The Nasdaq Biotech index fell
3.4% in its eighth straight down
day.
Stocks had their worst fiveday start to a year ever following mounting investor concerns
about declining oil prices and a
China-led slowdown in global
growth.
The fact that we didnt see
kind of another washout today
kind of emboldened some of
investors to think that perhaps,
DOW JONES

at least on a short-term basis,

maybe it was time for the market
to bounce a little bit, said Chuck
Carlson, chief executive officer at
Horizon Investment Services in
Hammond, Indiana.
Apple was the biggest positive
for the S&P 500 and Nasdaq. It
rose 1.6% to $98.53 after reports
that its music streaming service
hit the 10-million-subscriber
mark in six months.
The Dow Jones industrial
average was up 52.12 points, or
0.32%, to 16,398.57, the S&P 500
gained 1.64 points, or 0.09%, to
1,923.67 and the Nasdaq composite dropped 5.64 points, or 0.12%,
to 4,637.99.
Stocks turned up late in the
session, and the CBOE Volatility
Index Wall Streets fear gauge
finished down 10%.
The market is very stretched
to the downside. Being oversold

NASDAQ COMPOSITE

30 days to JANUARY 11, 2016

FTSE

30 days to JANUARY 11, 2016

doesnt mean its over, but nonetheless these things only go so far
before you get at least some kind
of relief rally, said Frank Gretz,
market analyst and technician
for Wellington Shields & Co. in
New York.
The S&P energy sector
dropped 2.1% following another
sharp drop in oil prices, while
the health sector declined 1.2%.
Among materials stocks, Freeport-McMoRan tumbled 20.3%
to $4.31.
Shares of McKesson dropped
10.3% to $163.55, also following a
disappointing profit forecast.
Investors are worried about
a US earnings recession, with
fourth-quarter results forecast
to show the second straight
quarterly decline for S&P 500
earnings.
Overall, quarterly corporate
earnings are expected to have fallDJ EURO STOXX

KOSPI

30 days to JANUARY 12, 2016

MONDAY, JANUARY 11, 2016

METAL
COPPER Merchant,US cts/lb
202.25
COPPER No. 2 Refined, US cts/lb 355.35
COPPER Bare Bright,del US cts/lb 389.85
LEAD battery scrap, del US cts/lb
42.5
LEAD Premium, del US cts/lb
13.5
ALUMINUM Premium, del US cts/lb 8.95
ALUMINUM Alloy, spot, US cts/lb
87
ALU Mixed Clips, del US cts/lb
61
ALU Turnings, del US cts/lb
49
TIN Premium/Grade A, US cts/lb
34.03
TIN Premium/Low Lead, US cts/lb
41.9
PALLADIUM free $/troy oz
481.24
PALLADIUM JMI base, $/troy oz
488
PLATINUM free $/troy oz
850.4
PLATINUM JMI base $/troy oz
856
KRUGGERAND, fob $/troy oz
1,089.6
NICKEL Premium, del US cts/lb
22.5
ZINC Premium, del US cts/lb
7
IRIDIUM, whs rot, $/troy oz
510
RHODIUM, whs rot, $/troy oz
630

en 4.2% from a year ago, according to Thomson Reuters data.

After the bell, shares of Alcoa,
Inc. slipped 0.4% to $7.98. The
company reported a quarterly
net loss after charges related to
shuttering parts of its traditional
smelting business.
Declining issues outnumbered
advancing ones on the NYSE
by 2,003 to 1,069, for a 1.87-to1 ratio on the downside; on the
Nasdaq, 1,743 issues fell and 1,081
advanced for a 1.61-to-1 ratio favoring decliners.
The S&P 500 posted one new
52-week high and 111 new lows;
the Nasdaq recorded 14 new highs
and 416 new lows.
About 9.1 billion shares
changed hands on US exchanges,
compared with the 7.3 billion
daily average for the past 20 trading days, according to Thomson
Reuters data. Reuters

225-NIKKEI

30 days to JANUARY 11, 2016

30 days to JANUARY 11, 2016

SPOT PRICES

30 days to JANUARY 12, 2016

COCONUT

LONDON METAL EXCHANGE

MANILA COPRA (based on 6% moisture)

Peso/100kg Buyer/Seller
Lag/Qzn/Luc 3,300/3,380
Coconut Oil - Crude
64.50/65.50
COCONUT OIL (PHIL/IDN),$ per ton,
CIF Rotterdam
Feb.16 / March 16
1,140.00
March 16 / April 16
1,145.00
April 16 / May 16
1,150.00
COCONUT OIL (US)-cents/lb
Crude CIF, NY Nola March / April
Crude FOB rail Nola March

LME FINAL CLOSING PRICES, US$/MT

LIFFE COFFEE

LIFFE COCOA (Ldn)-10 MT-/ton

New Robusta 10 MT - $/ton

High Low Sett Psett

OPEN: 4,673.44 CLOSE: 4,637.99

OPEN: 5,912.44 CLOSE: 5,871.83

OPEN: 3,030.31 CLOSE: 3,027.49

OPEN: 17,470.93 CLOSE: 17,218.96

OPEN: 1,907.61 CLOSE: 1,890.86

HIGH: 16,461.85 NET:

HIGH: 4,683.02 NET:

HIGH: 5,941.93 NET:

HIGH: 3,074.78 NET:

-5.98

HIGH: 17,546.57 NET: -479.00

HIGH: 1,910.59 NET:

LOW: 3,027.49 PREV: 3,033.47

LOW: 17,184.96 PREV: 17,697.96

LOW: 1,888.94 PREV: 1,894.84

52.12

LOW: 16,232.03 PREV: 16,346.45

-5.64

LOW: 4,573.78 PREV: 4,643.63

-40.61

LOW: 5,871.83 PREV: 5,912.44

ASIA-DUBAI

NEW YORK-WTI

(JANUARY CONTRACT)

LONDON-BRENT

(FEBRUARY CONTRACT)

(FEBRUARY CONTRACT)

s DOLLARS PER BBL

J 30 days to January 11, 2016

J 30 days to January 11, 2016

J
s DOLLARS PER BBL

s DOLLARS PER BBL

J 30 days to January 11, 2016

Jan. 5 6 7 8 11
$/bbl 31.20 30.20 27.20 29.20 28.10

Jan. 5 6 7 8 11
$/bbl 35.97 33.97 33.27 33.16 31.41

Jan. 5 6 7 8 11
$/bbl 36.42 34.23 33.75 33.55 31.55

Average (Jan. 4-11)

Average (Dec. 1-31)

Average (Jan. 4-11)

Average (Dec. 1-31)

Average (Jan. 4-11)

Average (Dec. 1-31)

$29.72
$34.64

$34.09
$37.33

$34.45
$38.86

Source: REUTERS

The focus is still on China and

the demand concerns in China
moving forward into 2016, said
Tony Headrick, an energy market
analyst at CHS Hedging LLC.
While Chinas volatility is
spooking traders over the outlook for demand from the worlds
no. 2 consumer, drillers in the
United States say they are focused on keeping their wells running as long as possible, despite
the slump. US shale output is
expected to decline by 116,000

barrels per day in February versus the month before, the same
rate as Januarys estimated drop
and a slower pace than many had
expected months ago, the Energy
Information Administration said.
Brent crude futures fell $2.00
to settle at $31.55 a barrel, their
lowest since April 2004. Brent
has fallen more than 15% in six
straight days of losses, the worst
such slump in a year.
US West Texas Intermediate
crude futures fell $1.75 to settle

3 MOS

1,471.50

1,460

ALUM. Alloy

1,600.00

1,610

COPPER

4,402.50 4,387

LEAD

1,602.00 1,601

NICKEL

8,310.00 8,270

TIN

13,580.00 13,650

ZINC

1,470.00 1,482

High Low Sett Psett

Mar.

2143 2055 2068 2155

May

2142 2057 2070 2154

May 1506 1471 1473 1513

July

2141 2058 2070 2151

July 1536 1500 1502 1541

Sept.

2134 2053 2065 2145

Copper sinks to lowest

since 09 on China woes

-3.98

LONDON Copper prices plummeted on Monday to their lowest

in six-and-a-half years as large
losses on Chinese equity markets
reinforced tarnished prospects
for growth and demand in the
worlds biggest consumer of industrial metals.
Benchmark copper on the
London Metal Exchange (LME)
ended down 2.2% at $4,387 a ton.
The metal used in power and construction earlier touched $4,381,
its lowest since May 2009.
Chinese markets have had a
rough start to the year, buffeted
by the falling yuan, two days of
stock exchange suspensions last
week, and weak factory and service sector activity surveys.
Chinese stocks ended more
than 5% down after a 10% plunge
last week, which triggered a global
sell-off of riskier assets.
Chinas stock market and
base metals are reflecting uncertainty about its economy, Cantor Fitzgerald analyst Asa Bridle
said.
Sentiment is the driver,
theres no let-up. We cant see
anything at the moment that will
come to the rescue for metals.
Mounting worries about demand can be seen in a report
from the US Commodity Futures
Trading Commission, showing
money managers with larger bets
on lower copper prices.

Oil dive deepens further; $20 warning on China

NEW YORK A brutal new year
sell-off in oil markets quickened
on Monday, with prices plunging 6% to new 12-year lows as
further ructions in the Chinese
stock market threatened to knock
crude as low as $20 a barrel.
Amid an accelerating tailspin
that shows no sign of slowing,
Mondays dive the biggest oneday loss since September triggered a rash of panicky trading
across the market.
Long-term futures contracts
for 2017 and beyond fell nearly as
hard as those for immediate delivery as some producers rushed
to hedge, while a key options
gauge surged to nearly its highest
since 2009.
The latest catalyst was a further 5% decline in Chinas bluechip stocks and a surge in overnight interest rates for the yuan
outside of China to nearly 40%,
their highest since the launch of
the offshore market. Technical
and momentum selling added
fuel to the sell-off.
Morgan Stanley warned that a
further devaluation of the yuan
could send oil prices spiraling
into the $20-$25 per barrel range,
extending the years 15% slide.

CASH

ALUM. H.G.

Mar. 1479 1442 1444 1485

Jan. 1430 1418 1403 1440

OPEN: 16,358.71 CLOSE: 16,398.57

FOOD
COCOA ICCO Dly (SDR/mt)
2,217.08
COCOA ICCO $/mt
3,069.2
COFFEE ICA comp 79 cts/lb
112.64
COFFEE mild arabica NY cts/lb
147.94
COFFEE mild arabica Bmen/Hburg 145.9
COFFEE robusta NY cts/lb
83.92
COFFEE robusta Le Havre/Marseilles 76.06
SUGAR ISA FOB Daily Price, Carib. port cts/lb 14.19
SUGAR ISA 15-day ave.
14.55
GRAINS
(FOB Bangkok basis at every Thursday)
FRAGRANT (100%) 1st Class, $/ton
789
FRAGRANT (100%) 2nd Class, $/ton
761
RICE (5%) White Thai- $/ton
366
RICE (10%) White Thai- $/ton
363
RICE (15%) White Thai- $/ton
362
RICE (25%) White Thai- $/ton (Super) 358
BROKER RICE A-1 Super $/ton
329

at $31.41 a barrel, the lowest since

December 2003.
The fierce selling triggered a
renewed scramble to buy options
betting on a further slide, sending
the CBOE volatility index, a gauge
of options premiums based on
moves in the US oil exchangetraded fund, over 13% higher to
more than 63 close to its highest level in seven years.
Nearly 17,000 lots of March
$30 puts CL300O6 and 18,000 lots
of February $30 puts CL300N6
traded, doubling Friday volumes.
The markets are positioned in
a way where traders are afraid to
be long, said Clayton Vernon, a
trader and economist with Aquivia LLC in New Jersey. The firm
push for normalization with Iran
has taken the last shred of geopolitical risk out of traders minds.
The European Union said on
Monday that the lifting of sanctions on Iran could come soon,
following a deal last year to curb
the Middle East nations nuclear
program. Many market participants say Irans return to the oil
markets would add more pressure to the global glut that has
knocked prices from more than
$100 in mid-2014. Reuters

A report quoting a top state adviser saying China will face great
difficulty in achieving growth
above 6.5% over 2016-2020 added
to the gloom.
But analysts say the biggest
problem for copper and other
base metals is oversupply. Large
output cuts by miners are needed
to offset slower demand growth in
China and move the market back
towards balance. Although it has
fallen some way, copper has thus
far been one of the more resilient
commodities with the longerterm supply-demand dynamics
perhaps more supportive than
other metals, Investec analysts
said in a note. But for now it
appears there is no impending
shortage and the demand side of
the equation appears to continue
to underperform.
Three-month aluminum fell
2.1% to $1,461 a ton. The metal,
used in transport and packaging,
has had some support from New
York-listed Alcoas plans to close
an aluminum smelter. But traders say the amounts are small in
an aluminum market estimated
at more than 55 million tons last
year and will do little to erode
large surpluses.
Zinc fell 1.7% to $1,482
a ton, lead lost 1.2% to $1,601,
tin slipped 0.5% to $13,675 and
nickel was down 3.3% at $8,270.
Reuters

Bullion down, but stocks turmoil keeps it close to nine-week highs

NEW YORK/LONDON Gold
retreated on Monday as the dollar rose versus the euro, but the
metal held around a nine-week
high as pressure on stock markets
continued to support investors
flight to safety.
Asian shares sank to their lowest in more than four years on
Monday after the Peoples Bank of
China guided the yuans midpoint
rate sharply stronger.
Global stock indexes and oil
prices also dropped, continuing a
brutal start to 2016.

Some investors were anticipating that gold futures were

slightly overbought after the
run-up last week, said Phillip
Streible, senior commodities broker for RJO Futures in Chicago.
Traders booked profits on
that run-up to $1,100, possibly to
free up margins to support other
positions that have recently been
beat up but still have long-term
prospects.
Spot gold was down 0.7% at
$1,095.76 an ounce at 3:03 p.m.
EST (2003 GMT), while US gold

futures for February delivery

settled down 0.2% at $1,096.20.
There is a bit of short rally
now, it seems that gold has encountered resistance at the 100day moving average, which comes
in at $1,109, Mitsubishi Corp.
strategist Jonathan Butler said.
We see things being tough in
the first half and thats related to
a probable increase in rates again
towards June, the dollar could
have a little more strength from
here, especially if Europe or Japan extend quantitative easing.

er demand for the noninterestpaying asset, while boosting the

dollar.
The Fed eventually raised
rates in December and attention
has shifted to how many hikes will
follow in 2016.
An acceler ated p ace of
tightening is going to be bearish for the gold market, Societe
Generale analyst Robin Bhar
said.
On Monday, Atlanta Federal
Reserve Bank President Dennis
Lockhart said there may not be

Bullion is often seen as an

alternative investment during
times of financial uncertainty,
although safe-haven rallies tend
to be short-lived.
Perceived missteps by Chinas
authorities in controlling their
share market and currency have
led to concerns Beijing might lose
its grip on economic policy.
China is the worlds biggest
consumer of gold at around 1,000
tons a year.
Gold slid 10% last year on
fears higher US rates would low-

enough fresh data on inflation to

support another US interest rate
hike by March.
Meanwhile, holdings of the
worlds largest gold-backed
exchange-traded fund, New Yorklisted SPDR Gold Shares, rose
0.69% on Friday, data from the
fund showed.
Palladium fell to its lowest
since August 2010 at $477.22 an
ounce, while platinum was down
4.2% at $838.71 an ounce. Silver
dropped 0.5% at $13.86 an ounce.
Reuters
Source: REUTERS

US COMMODITY FUTURES
PLATINUM

(JANUARY CONTRACT)
30 days to JANUARY 11, 2016

GOLD

(JANUARY CONTRACT)
30 days to JANUARY 11, 2016

Dollars per ounce

Dollars per ounce

OPEN: 876.30 CLOSE: 845.00

HIGH: 876.30 NET:
-32.10
LOW: 843.30 PREV: 877.10

OPEN: 1,105.70 CLOSE: 1,096.50

HIGH: 1,107.90 NET:
-1.30
LOW: 1,096.50 PREV: 1,097.80

MONDAY, JANUARY 11, 2016

SILVER

30 days to JANUARY 11, 2016

Dollars per ounce

13.95 CLOSE:
14.01 NET:
13.95 PREV:

(MARCH CONTRACT)

(JANUARY CONTRACT)

30 days to JANUARY 11, 2016

OPEN:
HIGH:
LOW:

COFFEE

COPPER

(JANUARY CONTRACT)

Dollars per ounce

13.86
-0.05
13.91

OPEN:
HIGH:
LOW:

1.98 CLOSE:
1.98 NET:
1.97 PREV:

30 days to JANUARY 11, 2016

US cents per pound

1.97
-0.05
2.02

OPEN
HIGH:
LOW:

118.00 CLOSE: 114.45

118.05 NET:
-4.55
113.60 PREV: 119.00

COCOA

SUGAR

(MARCH CONTRACT)

(MARCH CONTRACT)
30 days to JANUARY 11, 2016

US cents per pound

OPEN:
HIGH:
LOW:

14.50 CLOSE:
14.67 NET:
14.03 PREV:

14.15
-0.31
14.46

30 days to JANUARY 11, 2016

WHEAT

(MARCH CONTRACT)
30 days to JANUARY 11, 2016

US cents per pound

Dollars per bushel

OPEN: 3,000.00 CLOSE: 2,902.00

HIGH: 3,004.00 NET:
-115.00
LOW: 2,882.00 PREV: 3,017.00

OPEN: 481.25 CLOSE: 469.00

HIGH 481.50 NET:
-9.50
LOW: 466.50 PREV: 478.50