Businessmirror january 10, 2016

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BusinessMirror

Shakespeare lives

Now in the Philippines Turning Points: Global Agenda 2016 is a year-end package of opinion pieces and features, photos and cartoons covering events and trends in 2015 that will influence 2016 and beyond. By UK Prime Minister David Cameron

Out in January. Free to BusinessMirror subscribers

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United nations

2015 environmental Media Award leadership award 2008

This year’s 400th anniversary of the death of William Shakespeare is not just an opportunity to commemorate one of the greatest playwrights of all time. It is a moment to celebrate the extraordinary ongoing influence of a man who—to borrow from his own description of Julius Caesar—“doth bestride the narrow world like a Colossus.” »B3 Envoys&Expats

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A broader look at today’s business

n Sunday, January 10, 2016 Vol. 11 No. 94

P25.00 nationwide | 4 sections 20 pages | 7 days a week

Slow budgetary spending under Aquino blurs PHL’s growth focus–economists

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By Bianca Cuaresma

he country’s inability to spend the budget quickly enough has and should again undermine its ability to continue to expand at potential, unless the matter is addressed soon, economists said.

week ahead

ECONOMIC DATA PREVIEW

n Previous week: The peso fluctuated in the first week of the year, due largely to developments internationally, affecting the dollar. The local currency hit a depreciating mode at the first trading day of the year, as market players run to safe havens amid the emerging conflict in the Middle East. Data from the PDS Group showed that the local currency hit 47.12 to a dollar on Monday, the first trading day of the year. The peso then appreciated to 46.89 to a dollar on Tuesday. It closed at 47.025 to a dollar on Wednesday, then hit 47.03 to a dollar on Thursday. The peso ended the week at 47.165 to a dollar. n Week ahead: Markets are still seen to take cue from international developments for the next week—drawing attention to the Middle East conflict and data from the US economy.

However, economic managers lauded the improvements in the disbursement of public funds in recent months, saying the “slow but sure” spending ultimately should prove beneficial for the economy in the long run. In a recent review of the country’s economic dynamics, HSBC economist Joseph Incalcaterra said government spending—particularly infrastructure spending—will prove “the bedrock of the Philippines’s growth outlook over the next decade.” Fixing the many bottlenecks of fund disbursement is critical in ensuring the sustainability of the growth momentum. A while earlier, the Department of Finance (DOF) said the national government incurred yet another budget surplus last No-

vember, which only means fiscal authorities have yet to resolve the gridlock in disbursement. The DOF said the national government budget balance in November 2015 stood as a surplus of P6.1 billion that reversed the deficit of P27 billion the previous month. See “Budgetary spending,” A2

Govt willing to pay MRT 3 maintenance contractor but... By Lorenz S. Marasigan

Remittances (November)

n October remittances: The growth of remittances in the country stumbled again last October and posted a below 1-percent expansion rate, despite the expectations of increased money from Filipino migrant workers toward the last quarter of the year in preparation for the Christmas expenditures. The Bangko Sentral reported earlier that the cash sent home by Filipinos working overseas hit a dismal 0.2-percent growth last October, after recovering last September. In absolute terms, cash from Filipino migrant workers to their families in the country hit $2.232 billion last October, almost unchanged from the $2.228 billion seen in the same month in 2014. n November remittances: Economists and central bank officials have earlier said that a spike in remittance flows is expected to be seen toward the end of 2015, owing to the need for funding for the holiday season. Adding to that is the weakness of the peso, which is seen to add more purchasing power to the dollar flows sent by Filipino migrant workers to the country. Bianca Cuaresma

Incalcaterra: Government spending will prove “the bedrock of the Philippines’s growth outlook over the next decade.”

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HE government will only release the full payment for the Metro Rail Transit (MRT) Line 3’s P128million interim rolling stock-maintenance deal once its private contractor completes all the requirements laid out on the agreement, transportation officials said. Transportation Secretary Joseph Emilio A. Abaya said his office is willing to disburse the remainder of the P128-million payment due to Comm Builders and Technology Philippines should the group provide all the necessary upkeep needs of the MRT’s rolling stock and signaling system. “On our part, we will give what is due [the] people. We don’t have any problem with they payment,” he said. Comm Builders President Roehl

PESO exchange rates n US 47.0700

Bacar earlier said the government failed to pay his group for providing the maintenance of two of the MRT’s necessary components. MRT General Manager Roman Buenafe, for his part, called the lawyers of the private contractor “liars”, explaining that his office has disbursed money to pay what was due the company. “Their lawyers are liars, we have paid them almost P13 million. I also signed a disbursement voucher for another P9 million. Based on the contract, there is a provision that they should show that they have delivered their services. They have not delivered, according to bin cards,” he said. Buenafe added that the contractor was “treated fairly,” and he wants them to be paid in full. “We want them fully paid for their services and the part that they have rendered. But they must deliver,” he said. See “MRT,” A2

World’s richest losT $194B in first trading week of ’16

An electronic trading board shows a downward trend on the Philippines and other markets during morning trading at the Philippine Stock Exchange in Makati City on January 7. Chinese stocks nosedived on Thursday, triggering the second daylong trading halt of the week and sending other Asian markets sharply lower, as investor jitters rippled across the region. AP/Aaron Favila

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HE world’s 400 richest people lost almost $194 billion last week, as world stock markets began the year with a shudder on poor economic data in China and falling oil prices. Forty-seven billionaires lost $1 billion or more during the worst week for US stocks since 2011, according to the Bloomberg Billionaires Index. The combined drop was almost seven times the $29-billion lost in the first five trading days of 2015. The 400 people on the index had a combined $3.7 trillion at the end of the week, compared with more than $4 trillion a year ago. Amazon.com founder Jeff Bezos, the best-performing billionaire in

2015, lost the most, his fortune dropping $5.9 billion this week, as shares of the world’s largest online retailer fell more than 10 percent. Bezos is the world’s fourth-richest person with $53.7 billion and more than doubled his net worth in 2015, as investors cheered profits at Amazon. The world’s richest person, Bill Gates, fell $4.5 billion to $79.2 billion, while Spain’s Amancio Ortega, the second-richest, dropped $3.4 billion to $69.5 billion. The combined loss among the billionaires represents a 4.9-percent dip in their total wealth, according to the index, a slightly better perfor-

mance than world equity markets so far this year. Global stocks tumbled 6.2 percent for the week, according to the MSCI ACWI Index. There were 11 billionaires among the 400 whose fortunes rose this week, including the five heirs to Wal-Mart Stores Inc. The five Waltons added a combined $2.5 billion, as Wal-Mart gained a little over $2 a share. Jim Walton, son of company founder Sam Walton, had the biggest gain, a $759-million increase. The combined net worth of the 400 people on the index is $3.7 trillion, about equal to the GDP of Germany. Bloomberg

Think tank cites Mactan-Cebu airport PPP Given its current growth spurt, Cebu could pass the 10 million annual passenger milestone by 2018, and be close to processing 12.5 million passengers at the end of this decade.”—Center for Asia Pacific Aviation

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HE first airport public-private partnership (PPP) project of the current administration was hailed as the best transport deal in the region last year by a global project finance think tank. The P17.5-billion Mactan-Cebu International Airport (MCIA) modernization deal, bagged by Megawide Construction Corp. and its Indian partner, was tagged by Thomson Reuters’s Project Finance International (PFI) as “2015 Best Transport Deal” in Asia Pacific. Awarding will be held in February in London.

MCIA was taken over in late 2014 by GMR-Megawide Cebu Airport Corp., which has a 25year concession to manage and expand the air hub. The project involves the construction of a new world-class passenger-terminal building, which will boost the facility’s capacity to 12.5 million by 2018. Since the project was turned over to the private partner, there have been various upgrades and changes that were implemented: a “greener” terminal building with new seats; washrooms are being

n japan 0.4003 n UK 68.8305 n HK 6.0703 n CHINA 7.1395 n singapore 32.8564 n australia 33.0525 n EU 51.4899 n SAUDI arabia 12.5403

See “PPP,” A2 Source: BSP (8 January 2016 )


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