Businessmirror october 04, 2015

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three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business

n Sunday, October 4, 2015 Vol. 10 No. 360

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

Power outages during 2016 polls still possible–senator

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week ahead

ECONOMIC DATA PREVIEW Peso data

n Previous week: The

local currency weakened anew in the previous week, nearing trade to the 47 territory. The week started with peso value at 46.785 to a dollar. On Tuesday an abrupt depreciation hit the market, allowing the peso to close the market at 46.93 to a dollar—the lowest value of the peso for the week. The peso then traded at 46.74 to a dollar on Wednesday and 46.76 to a dollar on Thursday. The peso ended the week at 46.77 to a dollar. The total traded volume is at $3.42 billion, while the average value of the peso was at 46.797 to a dollar. n Week ahead: The local currency is still expected to continue to depreciate, although not in a drastic manner, as economic data from the United States favor a strong dollar.

Inflation (September)

Tuesday, October 6 n August inflation: Consumer prices increased by an average of 0.6 percent in August, a further deceleration from the 0.8 percent registered in July this year. The August figure brought the average inflation for the country in the first eight months of the year at 1.7 percent, still below the floor of the government’s target range for the year at 2 percent to 4 percent. It is also the sixth consecutive month that inflation decelerated. n September inflation: The Bangko Sentral governor said that inflation likely hit 0.2 percent to 1 percent in September this year, and hinted that a rise in inflation will be more solid in the coming months. Economists also said that inflation may have risen in September but at a minimal rate (see related story). Bianca Cuaresma

BusinessMirror media partner

By Lenie Lectura

UZON is assured of more than 500 megawatts (MW) of additional power-generation capacity during the summer months of 2016. But the risk of power outage is always present. “It’s not as bad as what we expected last summer, because we added new plants,” said Sen. Sergio Osmeña III, chairman of the Senate Committee on Energy, when asked to comment on an earlier pronouncement of Department of Energy (DOE) officials, who said that power supply could be tight next year. During last week’s budget hearing, DOE Officer in Charge Zenaida Y. Monsada mentioned a possible tight power-supply situation in Luzon next year, based on assumptions. However, she said, this assumption could change, as power producers assured that more capacity will be added to the grid. Osmeña agreed. He said that the additional capacity would come from the following power plants that will be switched on this year: the 97-MW Avion open-cycle natural-gas-fired power plant of First Gen Corp. of the Lopez group; the 135-MW coal power plant of South Luzon Thermal Energy Corp.; and the 150-MW coal plant of

Ailing global economy starts to weigh on U.S. job market

OSMEÑA: “We will be a little bit better than we were this year, but not by much. We will be more comfortable in 2017; but we will really be comfortable by 2018.”

Semirara Mining and Power Corp. of the Consunji Group. Osmeña cited another 150 MW of additional capacity on top of the three power projects he mentioned. “We’re adding about 530 MW of additional power, not counting the small renewable energy. Our demand will increase by about 400 MW from March 2015 to March 2016. So, we will be a little bit better than we were this year, but not by much. We will be more comfortable in 2017; but we will really be comfortable by 2018,” Osmeña said. See “Power,” A6

Economists see ‘slightly higher’ inflation in Sept

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By Bianca Cuaresma

CONOMISTS forecast inflation to be a little bit higher in September this year, as some effects of the El Niño are starting to kick in. In separate responses to the BusinessMirror’s queries, local banking giant Bank of the Philippine Islands (BPI) economist Nicholas Antonio Mapa, British multinational bank Standard Chartered economist Jeff Ng and University of Asia and the Pacific (UA&P) economist Victor Abola are of the consensus that September inflation will slightly rise after six consecutive months of decline. Their forecasts, however, all do not exceed the 1-percent mark. The inflation of the country has been below 1 percent since July this year. In particular, both the professor and the global bank economist forecast a 0.8-percent inflation rate for September this year, while BPI’s Mapa sees a smaller increment of 0.7 percent for the month. August’s inflation print was at 0.6 percent. UA&P’s Abola explained that the expected rise in inflation toward the end of the year will “not be drastic,” and that average inflation will likely stay on the bottom end of the target range of the government, at 2 percent to 4 percent up until the first half of 2016. Mapa, meanwhile, said that the rise

PESO exchange rates n US 46.7050

in inflation in September will be brought about by the rise in heavily weighted food prices, but will be minimized owing to utilities and other sectors affected by the decrease in crude-oil prices, like fuel and transport. “We may start to feel at least some of the heat from El Niño on the food basket, although the government seems to have been very prudent in front-loading its importation of foodstuff, which will mitigate this. Also, base effects are seen to kick in, given the higher base last year,” Mapa said. Security Bank economist Patrick Ella, meanwhile, bucks the view, saying that inflation could have slowed down further to 0.42 percent in September. Bangko Sentral Gov. Amando M. Tetangco Jr. said in late September that the growth of consumer prices may have expanded between 0.2 percent and 1 percent. He also announced in the Monetary Board’s latest policy meeting that the central bank has lowered its forecast for the 2015 inflation average anew. Inflation in the country is now expected to average at 1.6 percent for this year—indicating that any increase in inflation for the year in the next months will be minimal. The current inflation average of the country as of August this year is at 1.7 percent. The Philippine Statistics Authority will announce the September inflation rate on Tuesday.

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ASHINGTON—A sagging global economy has finally caught up with the United States. Nervous employers pulled back on hiring in August and September, as China’s economy slowed, global markets sank and foreigners bought fewer US goods. See “Global Economy,” A6

n japan 0.3895 n UK 70.6693 n HK 6.0266 n CHINA 7.3394 n singapore 32.6494 n australia 32.9558 n EU 52.2395 n SAUDI arabia 12.4547 Source: BSP (2 October 2015)


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Businessmirror october 04, 2015 by BusinessMirror - Issuu