News

U.S. economy entered recession in February

Jun 25, 2020
The Business Cycle Dating Committee of the National Bureau of Economic Research said in a statement its members “concluded that the unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this episode as a recession, even if it turns out to be briefer than earlier contractions.”
 
The designation was expected, but notable for its speed, coming a mere four months after the recession began. The committee has typically waited longer before making a recession call in order to be sure. When the economy started declining in late 2007, for example, the group did not pinpoint the start of the recession until a year later.
 
U.S. gross domestic product fell at a 4.8% annualized rate in the first three months of the year. The outcome for the April to June period is expected to show an even worse annualized decline of perhaps 20% or more. The unemployment rate rose from a record low of 3.5% in February, hitting 14.7% in April and 13.3% last month.
 
Read more:
https://www.reuters.com/article/us-usa-economy-recession/its-official-u-s-economy-entered-recession-in-february-idUSKBN23F28L


Cargo volume decreased by 4.5% in first quarter as COVID-19 hit shipping industry

Jun 24, 2020

State-run Philippine Ports Authority said Monday passenger traffic and cargo volume fell in the first quarter amid the outbreak of the coronavirus disease 2019.
 
Data from PPA showed that total cargo volume reached 56.70 million metric tons from January to March, down by 4.49 percent from 59.37 million MT registered in the same period last year.
 
Domestic cargoes dropped 3.26 percent in the first quarter to 25.44 million MT from 26.30 million MT a year ago, while foreign cargoes decreased 5.4 percent to 31.26 million MT from 33.06 million.
 
The PPA said import cargoes fell 5.8 percent to 23.24 million MT from 24.68 MT, while export cargoes declined 4.4 percent to 8.01 million MT from 8.38 million MT.

 
Read more:
https://manilastandard.net/business/biz-plus/325540/cargo-volume-decreased-by-4-5-in-first-quarter-as-covid-19-hit-shipping-industry.html


Quarantine change possible next week

Jun 17, 2020
THE government might reclassify the community quarantines declared in various areas next week, Malacañang said on Monday.
 
But Palace spokesman Harry Roque Jr. said officials would have to examine the situation in Metro Manila before deciding if it could be placed under modified general community quarantine.
 
“Well, it’s an even chance, I would say. Pero titignan po natin ang datos dahil, alam niyo naman, talagang ang sentro ng Covid-19 ay dito sa Metropolitan Manila (We will have to look at the data because, as you know, the center of Covid-19 is in Metro Manila),” he added.
 
Read more:

https://www.manilatimes.net/2020/06/09/news/national/quarantine-change-possible-next-week/730391/

Unemployment rate seen hitting 14.5% in 2020

Jun 15, 2020
THE unemployment rate is likely to average 14.5% in 2020 with the next labor force survey expected to reflect a more dismal picture of the job market than the April findings and a grimmer outlook for the economy, according to Nomura Global Markets Research.
 
“Taking into account the outturn in April, we raise our 2020 unemployment rate forecast to an average 14.5% from 7.1% earlier, up more sharply from 5.1% in 2019,” it said in a note Monday.
 
The Philippine Statistics Authority’s April had unemployment at 17.7% in April from 5.1% a year earlier. This translates to 7.25 million jobless Filipinos during the month, more than three times the 2.27 million in April 2019.
 
Read more:
https://www.bworldonline.com/unemployment-rate-seen-hitting-14-5-in-2020/
 

Stocks plummet on coronavirus fears

Mar 16, 2020
THE STOCK MARKET on Thursday plunged nearly 10% to its lowest since 2012 as investors headed for the exit amid deepening fears over the coronavirus disease 2019 (COVID-19) outbreak.

This as the World Health Organization (WHO) on Wednesday officially declared the spread of the coronavirus as a global pandemic.

he benchmark Philippine Stock Exchange index (PSEi) gave up 616.99 points or 9.71% to 5,736.27 on Thursday — its biggest single-day decline since the 12.27% drop in Oct. 27, 2008 at the height of the global financial crisis.

Thursday also saw the PSEi close at its lowest since the 5,636.59 finish on Dec. 18, 2012.

https://www.bworldonline.com/stocks-plummet-on-coronavirus-fears/

Currency counterfeiting declines

Mar 16, 2020
CASES OF currency counterfeiting dropped in 2019, with the central bank ramping up efforts to curtail these illegal operations.

The rate of currency counterfeiting in the Philippines stood at 11 parts per million (PPM) banknotes in circulation in 2019, down compared to the 12.9 PPM seen in the previous year, the Bangko Sentral ng Pilipinas said in a statement.

The central bank said its drive against counterfeiting with the help of other law enforcement agencies has resulted in the arrest of eight suspects and the confiscations of fake bank notes with notional value of P473,500.

 

Peso may weaken anew as virus death toll continues to increase

Feb 17, 2020
THE PESO could weaken anew this week following the previous week’s rally, depending on market sentiment on developments in the coronavirus disease 2019 (COVID-19) outbreak. The local unit ended trading at P50.56 on Friday, depreciating by six centavos from its Thursday close of P50.50.

Week on week, however, the peso strengthened by 19.50 centavos from its P50.755-per-dollar close on Feb. 7. A trader attributed the peso’s strength week on week to the outlook upgrade from Fitch Ratings and some local data. “When Fitch announced the outlook upgrade, the peso strengthened. This, along with narrowing trade deficit made the peso stronger,” a trader said in a phone call.

On Tuesday, Fitch Ratings upgraded its outlook for its credit rating on the Philippines to “positive” from “stable,” citing the country’s sound macroeconomic policy is poised to continue which could bolster growth and keep inflation stable.

Amazon Web Services tunes up high-frequency enterprises in PHL

Dec 16, 2019
IN 2017, the data of over 55 million registered voters was leaked in what is now known as the COMLEAKS incident. There have been many reported cases of public data breaches in recent years. This year, a financial services company reportedly exposed about 885 million records of mortgage transactions dating back to 2003 due to what it claimed was a design defect.
 
In April 2019, a cyber-security company revealed that more than 540 million Facebook user IDs, account names, likes and comments have been exposed on a publicly accessible server.
 
According to Amazon Web Services (AWS) Enterprise Strategist Mark Schwartz, security breaches happen because of two things.
AWS is positioned to help businesses transform into high-frequency enterprises through cloud technology. The cloud enables quick innovation in four ways. First, it can immediately provide enterprises with resources to experiment on ideas at a small scale. Second, it provides them with powerful technologies, like artificial intelligence and machine learning, at low cost so they don’t have to invest heavily on resources, talent and development.
 
Read more:
https://businessmirror.com.ph/2019/12/07/amazon-web-services-tunes-up-high-frequency-enterprises-in-phl/

Worldwide semiconductor manufacturing equipment sales jump 12 percent

Dec 16, 2019
Worldwide semiconductor equipment manufacturers posted third-quarter 2019 billings of $14.9 billion, a quarter-over-quarter increase of 12 percent but down 6 percent from the third quarter of 2018.
 
This is according to data collated by SEMI, the global industry association representing the electronics manufacturing and design supply chain, reported today.
 
The data are gathered jointly with the Semiconductor Equipment Association of Japan from more than 80 global equipment companies that provide data on a monthly basis.
 
Read more:
https://roboticsandautomationnews.com/2019/12/06/worldwide-semiconductor-manufacturing-equipment-sales-jump-12-percent/27252/

DTI pushes standards for logistics services

Dec 13, 2019
THE Department of Trade and Industry-Competitiveness Bureau (DTI-CB), in cooperation with the Bureau of Philippine Standards, is pushing for the adoption of Philippine National Standard on Road Freight Transport (PNS) 2135:2018 that seeks to improve the competitiveness of the country’s logistics services sector.
 
“We are pleased to introduce our programs that can cater to the needs of trucking sector, and enable us to learn and implement the best global practices and standards as a way to help improve the competitiveness of the country’s logistics services sector,” DTI-CB Director Lilian Salonga said.
 
The PNS 2135:2018 provides indicators and targets on how to measure performance of road freight activities and initiatives to enhance road freight transport operations.
 
Read more:
https://www.manilatimes.net/2019/12/09/business/business-top/dti-pushes-standards-for-logistics-services/662675/

Trade chief tempers 2019 export hopes

Dec 13, 2019
THE DEPARTMENT of Trade and Industry (DTI) now expects overseas sales of Philippine goods to remain at last year’s level, reflecting a potential improvement from last year’s drop but still short of the already-tempered target set last July by state economic managers.
 
In his keynote for exporters’ annual summit at the Philippine International Convention Center in Pasay City on Friday, Trade Secretary Ramon M. Lopez said: “We expect merchandise export performance to be flat and service exports to post moderate single-digit growth leading to total exports achieving positive moderate single digit growth for 2019.”
 
In July, the Development Budget Coordination Committee cut its merchandise export sales projection to two percent for this year from six percent previously “due to slower global growth” and maintained the previous six-percent annual outlook for 2020-2022. Service export growth assumption was cut to nine percent for this year from 10% and set also at nine percent from 11% previously for 2020-2022.
 
DTI’s Export Marketing Bureau had said in October that it expects merchandise export sales to increase 1-3% this year, from four percent previously.
 
Read more:
https://www.bworldonline.com/trade-chief-tempers-2019-export-hopes/

Trade chief tempers 2019 export hopes

Dec 11, 2019
THE DEPARTMENT of Trade and Industry (DTI) now expects overseas sales of Philippine goods to remain at last year’s level, reflecting a potential improvement from last year’s drop but still short of the already-tempered target set last July by state economic managers.
 
In his keynote for exporters’ annual summit at the Philippine International Convention Center in Pasay City on Friday, Trade Secretary Ramon M. Lopez said: “We expect merchandise export performance to be flat and service exports to post moderate single-digit growth leading to total exports achieving positive moderate single digit growth for 2019.”
 
In July, the Development Budget Coordination Committee cut its merchandise export sales projection to two percent for this year from six percent previously “due to slower global growth” and maintained the previous six-percent annual outlook for 2020-2022. Service export growth assumption was cut to nine percent for this year from 10% and set also at nine percent from 11% previously for 2020-2022.
 
DTI’s Export Marketing Bureau had said in October that it expects merchandise export sales to increase 1-3% this year, from four percent previously.
 
Read more:
https://www.bworldonline.com/trade-chief-tempers-2019-export-hopes/

Changing perks could halve jobs SEIPI

Dec 11, 2019
ELECTRONICS MANUFACTURERS — whose products make up more than half of the country’s goods sold abroad — expect 50% job loss by 2026 if the current version of the bill that overhauls tax incentives was passed, Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) President Danilo C. Lachica said.
 
Mr. Lachica told reporters on the sidelines of a forum on Tuesday that the industry projects 38,000 annual employment losses between 2022 to 2026 — totaling some 190,000 positions — cutting down half of the 380,000 direct jobs in electronics.
 
He said these job losses are probable “if the version of CITIRA that will be passed doesn’t address the concerns of the industry.”
 
SEIPI in a position paper last October offered recommendations for the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA), including retention of five percent tax on gross income earned (GIE) in lieu of national and local taxes, after expiration of the income tax holiday for existing investors who meet performance criteria.
 
Read more:
https://www.bworldonline.com/changing-perks-could-halve-jobs-seipi/

IMI slumps to loss in 3rd quarter

Nov 19, 2019
INTEGRATED Micro-Electronics, Inc. (IMI) slumped to a net loss in the third quarter as it continued facing a global slowdown in its main market segments.
 
The Ayala-led manufacturing firm reported yesterday an attributable net loss of $5.33 million in the three months ending September, a turnaround from the $9.78 million attributable net income it posted in the same period last year.
 
Revenues in the three-month period declined 11% to $303.88 million, alongside an 8% drop in cost of sales to $281.74 million.
 
Year to date, IMI’s attributable net income was slashed to $451,000 from $41.35 million last year. Revenues in the three quarters slipped 7% to $939.57 million, while cost of sales dropped 5% to $860.48 million.
 
In a statement, the company pointed to the industry slowdown and various geopolitical issues that dragged its performance during the period.
 
Read more:
https://www.bworldonline.com/imi-slumps-to-loss-in-3rd-quarter/

Developing Asia needs over 5% of GDP investments into infra ADB

Nov 18, 2019
MANILA, Philippines — Countries in Developing Asia need to invest more than five percent of their gross domestic product (GDP) over the next decade to build infrastructure for their rapidly growing economies, according to a new book co-published by the Asian Development Bank.
 
The book, titled “Infrastructure Financing in Asia,” said many countries in Asia Pacific are still investing less than five percent of GDP for infrastructure development.
 
The bank said at this rate, sustaining the momentum for financing infrastructure as well as boosting economic growth and development would be more difficult.
 
Read more:
https://www.philstar.com/business/2019/10/31/1964713/developing-asia-needs-over-5-gdp-investments-infra-adb#spwBQpYevOTgXqIj.99

China to Funnel $29 Billion Towards its Chip Ambitions

Nov 18, 2019
China has formally created a $29 billion state-backed fund to invest in the semiconductor industry, advancing its goal of reducing a dependency on U.S. technology.
 
China is the world’s biggest chip importer, and the long-awaited 204 billion yuan ($28.9 billion) fund will fuel Beijing’s efforts to forge its own semiconductor supply chain from chip design to manufacturing. It will play a key role in steering overall strategy and investment in the integrated circuit sector, which includes processors and storage chips used in smartphones and datacenters.
 
Beijing’s effort to reduce its reliance on American chips is taking on greater urgency as the Trump administration adds more Chinese names to its export blacklist, cutting off the flow of chips to targeted companies from Huawei Technologies Co. to SenseTime Group Ltd.
 
Read more:
https://www.bloomberg.com/news/articles/2019-10-29/china-to-funnel-29-billion-towards-its-chip-ambitions

Regulation of shipping charges could hurt competitiveness

Nov 14, 2019
THE government’s plan to regulate the fees charged by international shipping lines that operate in the Philippines will likely disrupt the trade and negatively affect the country’s competitiveness, according to a study conducted by a University of the Philippines professor.
 
In a presentation of his “Study on International Shipping in the Philippines” in Manila Wednesday, Epictetus E. Patalinghug, a professor emeritus at the University of the Philippines-Virata School of Business, said the proposed Joint Administrative Order (JAO) that seeks to regulate the fees and charges of international shipping lines that operate in the country “will likely disrupt the trade and affect the competitiveness of the Philippines.”
 
Read more:
https://www.bworldonline.com/regulation-of-shipping-charges-could-hurt-competitiveness/

Dan Lachica on CITIRA and the importance of tax incentives

Nov 14, 2019
Danilo C. Lachica, president of the Semiconductor & Electronics Industries in the Philippines Foundation, Inc. (SEIPI), shares his thoughts on the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA).
 
Watch the full video:
https://www.youtube.com/watch?v=bBqN-X4N5Kc

IMI slumps to loss in 3rd quarter

Nov 13, 2019
INTEGRATED Micro-Electronics, Inc. (IMI) slumped to a net loss in the third quarter as it continued facing a global slowdown in its main market segments.
 
The Ayala-led manufacturing firm reported yesterday an attributable net loss of $5.33 million in the three months ending September, a turnaround from the $9.78 million attributable net income it posted in the same period last year.
 
Revenues in the three-month period declined 11% to $303.88 million, alongside an 8% drop in cost of sales to $281.74 million.
 
Year to date, IMI’s attributable net income was slashed to $451,000 from $41.35 million last year. Revenues in the three quarters slipped 7% to $939.57 million, while cost of sales dropped 5% to $860.48 million.
 
In a statement, the company pointed to the industry slowdown and various geopolitical issues that dragged its performance during the period.
 
Read more:
https://www.bworldonline.com/imi-slumps-to-loss-in-3rd-quarter/

Developing Asia needs over 5% of GDP investments into infra ADB

Nov 13, 2019
MANILA, Philippines — Countries in Developing Asia need to invest more than five percent of their gross domestic product (GDP) over the next decade to build infrastructure for their rapidly growing economies, according to a new book co-published by the Asian Development Bank.
 
The book, titled “Infrastructure Financing in Asia,” said many countries in Asia Pacific are still investing less than five percent of GDP for infrastructure development.
 
The bank said at this rate, sustaining the momentum for financing infrastructure as well as boosting economic growth and development would be more difficult.
 
Read more:
https://www.philstar.com/business/2019/10/31/1964713/developing-asia-needs-over-5-gdp-investments-infra-adb#spwBQpYevOTgXqIj.99


You have 0 items in you cart. Would you like to checkout now?
0 items
Switch to Mobile Version
Recent Updates