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Sunday, December 14, 2014 Vol. 10 No. 66
P. | | 7 DAYS A WEEK
DBS BANK REMINDS GOV’T TO STEP UP SPENDING ON PRODUCTIVE AREAS
NG told: Avoid budget pitfall B B C
31 DAYS
WEEK AHEAD
ECONOMIC DATA PREVIEW Peso
■ Previous week: The local currency started last week’s trade on Tuesday, following the suspension of trading in the local financial markets due to Typhoon Ruby (international code name Hagupit). The peso traded on Tuesday at 44.53 to a dollar, broadly steady compared to the previous week’s end of 44.54. The peso then exhibited slight weakness coming into Wednesday to hit 44.66 to a dollar before appreciating back to 44.48 against the greenback on Thursday. The local currency ended the week at 44.58 to a dollar. The total traded volume was at $1.915 billion. ■ Week ahead: The local currency is likely to continue its rally against the US dollar toward the week, as market players search for fresh leads toward the end of the year. Among the data sets that can sway peso-dollar rates are the statement following the upcoming monetary-policy meeting of the United States and the Philippines’s latest balance of payment (BOP) numbers.
Balance of payments (November)
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ITH the country’s continued ascent up the investmentgrade ladder since last year, the government is now urged to avoid yet again the pitfall of its inability to spend the fiscal budget to fund productive areas in the country. In a commentary following the country’s latest upgrade to “Baa2” by Moody’s Investors Service, regional banking giant DBS Bank said the government now needs to channel its funds to infrastructure projects and the groundwork to long-term sustainable growth for the sustainability of the economic expansion of the country. “Moody’s raised its sovereign credit rating for the Philippines to ‘Baa2.’ The rating is now on [a] par with Standard & Poor’s rating of ‘BBB,’ while Fitch remains a
TORTURE AND THE U.S. INTELLIGENCE FAILURE
laggard. Favorable GDP [gross domestic product] growth prospects, sound fiscal balance and limited vulnerability to risks currently affecting emerging markets are the main reasons for the upgrade,” DBS Bank said. “The bigger challenge is to ensure sustainable growth in the longer term. On the fiscal front, this will entail further infrastructure and capacity buildup in the economy, particularly given that income level remains low,” it added. S “B ,” A
Ruby damage to agri seen to drag Q4 growth
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HE rush of unfavorable weather conditions toward the end of the year may deter the anticipated recovery of the country’s growth in the last quarter as the weather disturbances might seriously affect the agricultural sector’s performance, a local economist said. Bank of the Philippine Islands (BPI) associate economist Nicholas Antonio Mapa said Typhoon Ruby (international code name Hagupit) is expected to be a drag on the economy “undoubtedly” because of the crop damage it caused.
December 19, Friday ■ October’s BOP: The country’s BOP for October alone hit a surplus of $24 billion. The month’s surplus is larger than the $5-million BOP surplus seen in the same month last year. It is, however, smaller compared to the previous month’s surplus of $98 million. October’s surplus was not enough to push the country’s 10-month deficit to the surplus territory. Latest data from the central bank showed that the country still suffers a $3.408-billion deficit in the period of January to October this year. ■ November BOP: Earlier, the Bangko Sentral ng Pilipinas (BSP) announced that it has revised
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PESO EXCHANGE RATES ■ US 44.5770
“The third-quarter gross domestic product was slowed considerably by the poor performance of the agriculture sector, with the Neda [National Economic and Development Authority] pinning the blame on natural disasters. Ruby’s impact will be similar and will probably slow the overall fourth-squarter GDP,” Mapa said in response to a query by the BusinessMirror. Local financial markets, schools, and private and public offices were shut down in several S “Q ,” A
FRONTIER AWARDEE Duty
Free Philippines CEO Lorenzo “Enchong” Formoso (center) receives the Frontier Award from Butlers Chocolates Chairman Mairead Sorensen (left) and Frontier Magazine Editor Kristiane Henney at the Annual Duty and Tax Free Global Summit in Cannes, France, in October 2014.
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HE Obama administration published a series of memoranda on torture issued under the Bush administration. The memoranda, most of which dated from the period after 9/11, authorized measures including depriving prisoners of solid food; having them stand shackled and in uncomfortable positions; leaving them in cold cells with inadequate clothing; slapping their heads and/ or abdomens; and telling them that their families might be harmed if they didn’t cooperate with their interrogators. GlobalEye»C2-C3
■ JAPAN 0.3748 ■ UK 70.0929 ■ HK 5.7514 ■ CHINA 7.2031 ■ SINGAPORE 33.9402 ■ AUSTRALIA 36.7949 ■ EU 55.2621 ■ SAUDI ARABIA 11.8774 Source: BSP (12 December 2014)