RICE SUPPLY TO LAST 4 MONTHS THE country’s rice supply is enough to last for the next four months at 3.79 million metric tons as of November 1, or 20.4-percent higher than in October and 28.3 percent more than last year’s inventory, the government said. Stocks in National Food Authority depositories would be good for 53 days, while those in commercial warehouses and in households, 20 and 38 days, respectively. JAMES KONSTANTIN GALVEZ
Peso firms up, but stocks slide on profit-taking
THE peso moved stronger against the dollar on Thursday amid the US government’s tax cuts, while local share prices succumbed to profit-taking. At the Philippine Dealing System, the peso gained 13 centavos to the dollar to close at 43.67 from 43.80 the previous trading day. The pair opened lower at 43.70 from its close of 43.80 Wednesday as it was bought up on fixing demand. The exchange rate reached 43.75 levels to a low of 43.635 before good selling interest was seen again, traders said. “Supporting the weak peso-dollar
pair scenario was the continued deep discount in the swap prices. The [Bangko Sentral ng Pilipinas] was there again, providing much needed relief in the swaps taking prices on longer tenor. The reaction in the spot was immediate,” a trader said. Total trading volume reached $893.21 million, down from $1.222 billion the previous trading day. The peso-dollar pair is expected to
trade at 43.60 to 43.90 on a daily range and at 43.60 to 44.20 on a weekly range. The absence of local market- moving news on Thursday pulled down share prices at the Philippine Stock Exchange, with the composite index sliding 11.67 points, or 0.28
percent lower to 4,209.42. The broader all-shares index added 0.9 points, or 0.03 percent to 2,915.52. Decliners beat advancers, 83 to 50, while 44 stocks were unchanged. A total of 769.76 million shares worth P3.98 billion were traded. Overseas funds flowed out of the market as foreigners sold their invest- ments worth P224.1 million. “Investors opted
to cash in on their gains while the
market was quiet,” said Astro del Castillo of First Grade Holdings. Local stocks were lifted early in the session by bargain hunters but softened in the end as profit takers returned to the market, said del Castillo. “The market thus kept to its 50-
point trading band, cruising along, albeit with enthusiasm held back by rather tepid movements among global markets,” said Jun Calaycay of Accord Capital Equities Corp. The Dow Jones industrial average
posted modest gains of 13.32 points, or 0.1 percent to 11,372.48. The PSEi is expected to move
sideways with negative bias as investors would likely book their gains ahead of the weekend. LAILANY P. GOMEZ AND
KRISTA ANGELA M. MONTEALEGRE
IMF chief says situation in Europe still ‘troubling’
GENEVA: The head of the Interna- tional Monetary Fund (IMF) Dominique Strauss-Kahn said Wednesday that the situation in Europe, which is battling a debt cri- sis, remains troubling and that the future looked uncertain. However, he insisted that the
euro was not in danger, although the eurozone risked posting very slow growth if it failed to pull it- self together.
“The situation in Europe re- mains troubling, and the future is more uncertain than ever,” said Strauss-Kahn, managing director of the IMF, in Geneva.
Despite the crisis gripping the EU, Strauss-Kahn indicated confi- dence in the single currency. “I don’t believe that the euro is in danger,” he told a public forum organized by the United Nations. “On the other hand, I think that if the eurozone does not pull itself together quickly enough, it would risk having periods of very slow, difficult growth, that it could avoid on condition that its governance is greatly improved.” Pascal Lamy, director-general of
the World Trade Organization, noted that at the moment “there is one place on this planet where we are talking about restrictions, and that’s Europe.”
He explained that the region is suffering from a budgetary prob- lem as it is unable to finance its social model as its workforce ages. Reforms were necessary to help Europe adjust, but “these reforms are politically difficult.”
In order “for this population to continue to benefit from this sys- tem would require either immigra- tion or change.”
Europe is suffering from a pub- lic debt crisis, with Greece and Ire- land forced to tap into EU-IMF res- cue funds to keep afloat. European Union leaders have in recent days been debating whether to increase the size of an overall EU-IMF rescue fund. Portugal, which like Greece and Ireland is reeling under its public debt burden, is now firmly in the firing line to need help next. Strauss-Kahn said nevertheless that the international community should begin bolstering supervi- sion to head off future crises. “Without waiting for calm to be restored, we need to start rebuild- ing these governance structures. It’s time for a triple comeback,” said the IMF chief.
The international community has been looking at ways to bol- ster financial governance, includ- ing imposing stricter rules on banks, after a massive financial crisis in 2008. Strauss-Kahn assessed that the effects of the crisis were “far from over” and reforms to pre- vent a repeat were not “not mov- ing fast enough.” “Regulation is certainly very important, but all that must be supervised.
Supervision is still far behind, resolution of crises also,” he said, pointing out that it was su- pervision that failed in the subprime meltdown.
In addition, he noted that the Greek and Irish episodes demon- strated the need for crisis resolu- tion tools. “We’re far off the mark in terms of financial governance,” he added. AFP
business The Manila Times
manila
times@gmail.com FRIDAY
December 10, 2010 BY LAILANY P. GOMEZ REPORTER T
HE Philippine central bank said consumer confidence hit an all-time high in the fourth quarter this year
amid the sound macroeconomic fundamentals and brighter economic prospects ahead.
In its Fourth Quarter Consumer Expectation Survey conducted during the period October 1 to 15, the Bangko Sentral ng Pilipinas (BSP) said the overall confidence index hit an all-time high of -8.5 percent from -14 percent in the previous quarter. This was the highest reading recorded
since the survey started in 2007. “The sustained rise in consumer confidence was supported by the bet- ter-than-expected gross domestic prod- uct growth for the first three quarters of the year,” Rosabel Guerrero, direc- tor of BSP’s Department of Econom- ics Statistics, told reporters.
B 1
ADD
TO YOUR SHOPPING LIST AT
Consumer confidence hits new high in fourth quarter
»CONFIDENCE INDEX -14
(in percent) 0
8 9
14 3Q -8.5 4Q
The country’s gross domestic prod- uct grew by 7.5 percent in the third quarter, exceeding the full year govern- ment forecast of 5 percent to 6 percent. The confidence index for the cur- rent quarter remained in the nega-
Retailers expect to sustain growth
BY BEN ARNOLD O. DE VERA REPORTER
RETAILERS expect to sustain double-digit growth next year on back of strong consumer spending. Bernie Liu, Philippine Retail-
ers Association (PRA) president, told reporters that the retail sector is expected to grow by a tenth this year. Liu said this year’s retail sales
were propelled by election spending, more employment in the business process outsourcing and tourism industries, and the continued influx of remittances from Filipinos abroad.
He said sales this Christmas season
are expected to increase by up to 15 percent, adding that, “Christmas is the busiest time for retailers.” Apparel, accessories and appliances sell well during the holidays, Liu said.
President Benigno Aquino 3rd, who graced the 2010 Outstanding Filipino Retailers and Shopping Centers of the Year Awards on Wednesday night, cited the contributions of the retail sector to the economy. “Recent data has shown that Philippine retailing has been a major contributor to the growth of our national economy. In the third
quarter of the year 2010, the gross value added of the retail sub-sector posted a 14.1-percent growth. As a result, the trade industry, which is made up of the retail and wholesale sub-sectors, posted a double-digit growth of almost 12 percent,” the President said.
“Entrepreneurship is working
wonders for us. We hope to see more of this in the future,” he added. The association bestowed the PRA President’s Award to Bienvenido Tantoco Sr.— regarded as the “Father of Luxury Retailing” in the country and founder of the high-end Rustan’s chain of stores.
Customs files cases against 4 firms
BY KATRINA MENNEN A. VALDEZ REPORTER
THE Bureau of Customs (BOC) has filed four separate criminal com- plaints against female firearms im- porters, logistics firms, a customs brokerage outfit and trader of coun- terfeit goods.
During Thursday’s filing of the complaints before the Department of Justice (DOJ), Customs Com- missioner Angelito Alvarez said smuggled products were worth P250 million.
Charged with illegal importa- tion of firearms was Lucia Chicco of 110 Fordahm Street, Marisol, Angeles City.
In its complaint, BOC alleged that Chicco tried to clear a 40- footer container van, which she declared as containing used house- hold products. Inspection by Customs agents
however yielded 16 assorted long barrel guns and ammunition, two revolvers, six pistols and two safety deposit boxes containing assorted ammunition. “The value of these brand new firearms from the US has yet to be determined. But all of these will be turned over to the Philippine Na- tional Police,” Alvarez said. Also charged before the DOJ was logistics firm Kintetsu World Ex- press and the company’s broker Kristofferson Manalo for “unlawful importation” of assorted units of CD replicating machines and acces-
sories meant to pirate motion pic- tures and music albums. “These products were all seized since they did not secure the neces- sary permit, clearance and license from the Optical Media Board,” Alvarez said. Another tax evasion case was filed against Goldrich International Ex- change, which is believed to be a dummy of still unknown parties. “Such company only exists on
papers, and facilitated the entry of unlawfully imported goods by se- curing customs accreditation,” the BOC chief said.
Deputy Commissioner Gregorio
Chavez, who is also the executive director of the Run After The Smug- glers Program, said Goldrich “is a bogus business enterprise that was created mainly for the purpose of securing customs accreditation and facilitating the entry of unlawfully imported goods to the damage and prejudice of the government.” Chavez said that between Octo- ber last year and July this year, Goldrich imported various products declared in 269 import entries with a dutiable value of P80.9 million, and slapped duties and taxes totaling P16.9 million.
“These are extremely underval- ued and misdeclared before the BOC, because these 269 import entries in fact involved assorted products worth at least P1.3 bil- lion.” Chavez said. He said the company’s officer could not be located in its listed
address at Suite 2000 Remar Build- ing, No. 49 Doña Soledad Avenue, Better Living Subdivision in Parañaque City.
Among the officers and em-
ployees of Goldrich charged be- fore the DOJ were Teodoro Men- doza, Alberto Aguilar, and Lili- beth de la Peña. Also sued were the following cus- toms brokers whose services were engaged by the company: Nimdorge Tariman, Carlos Dacaymat Jr. and Elsa Marie Contreras. The fourth case involved Kornets International Co. Ltd., which tried on May 22 this year to bring in counterfeit products and listed an abandoned four-storey building at 99 Doña Rosario Street, Doña Rosario Village in Novaliches Quezon City, as its place of business. Alvarez said a container filled with cosmetic hardware and elec- tronic products consigned to Kornets were abandoned by the company after the shipment was ordered by the BOC for examination and inventory.
The assorted merchandise
worth at least P3 million was cer- tified by the concerned manufac- turers as fake.
Among the companies whose products were imitated by the sup- pliers of Kornets were Unilever Phil- ippines, Nivea, L’ Oreal and SEEMI. “We cannot put tax rates for these products since these are all counter- feit goods. Hence, all of these shall be destroyed,” Alvarez said.
UK company gives boost to Filipino accountants I
N a move that will take pain out of career gain, Filipino manage- ment accountants will have the op- portunity to boost their competitive edge both here and abroad by ob- taining their international qualifica- tions without having to leave the en- virons of Manila. The welcome development comes
as UK-based Chartered Institute of Management Accountants (CIMA) teams up with two of the most pres- tigious institutions in the Philippines to offer its professional qualifications right here in the country. CIMA, the world’s leading and larg- est professional body of manage- ment accountants recently signed a Memorandum of Understanding with the Asian Institute of Manage- ment (AIM) and De La Salle Univer- sity (DLSU) to offer the CIMA Mas-
RENE MARTEL
ters Gateway Assessment (CMGA). Those who complete the CMGA will be awarded the CIMA Advanced Diploma in Management Accounting. In addition, DLSU will offer the CIMA Certificate in Business Accounting and the CIMA Professional Qualifi- cation (Diploma and Advanced Di- ploma) to interested students. The qualifications will be available at the two institutions starting January 2011. British Ambassador Stephen Lillie
welcomed the MOU signings. “We are pleased that CIMA quali- fications are now to be offered in the Philippines. The CIMA qualifi- cation provides world-class training locally, which will improve busi- ness efficiency and contribute to the local economy. I’m delighted to support this latest example of Philippine-British business and educational co-operation. “ The British Embassy’s UK Trade
and Investment team has been sup- porting CIMA since 2008, helping to promote their services to poten- tial partners and corporate clients in the country. Prof. Dr. Robert Jelly, Executive Director for Education at CIMA Glo- bal said: “CIMA is very grateful to the UKTI team in Manila for their good work and support since CIMA
first went to Manila in November 2008. It was UKTI team who helped us from the onset and we had been growing at a quite swift pace since”. Speaking of the local tie-up Jelly pointed out: “We are very pleased to partner with the two best univer- sities in The Philippines. CIMA hopes to work closely with both in- stitutions to train more manage- ment accountants who in return will help their companies to grow and boost the country’s economy,” According to independent research conducted by the University of Bath School of Management in the UK, CIMA’s syllabus and examination structure are the most relevant to the needs of business of all the account- ancy bodies assessed. The CIMA sylla- bus changes every four years to suit the needs and requirements of employers,
and the qualification has evolved over the years into what is now recognized all over the world as the qualification of choice for employers.
CIMA is committed to upholding the highest ethical and professional standards of members and students, and to maintaining public confi- dence in management accountancy. Founded in 1919, CIMA has 172,000 members and students in more than 160 countries, includ- ing the Philippines. The academic organization works closely with employers and sponsors leading- edge research, constantly updat- ing its qualification to ensure it remains the employers’ choice when recruiting financially- trained business leaders.
bizzfizz_98@yahoo.com
tive territory as the pessimists out- numbered the optimists, especially those in the low-income group who attributed their unfavorable senti- ment to lack of employment and insufficient income. The survey also showed that con- sumer sentiment across all income groups climbed to their highest lev- els, with the high-income group reg- istered the strongest confidence at 31.6 percent.
The high-income group is again the most optimistic about the eco- nomic conditions of the country at 6 percent from -14.4 percent in the third quarter.
“Consumer optimism on the three segments of the indices indi-
➤ConsumerB2
Rules for Digital TV out in 1Q
BY DARWIN G. AMOJELAR SENIOR REPORTER
THE National Telecommunications Commission (NTC) will issue rules on digital terrestrial TV in the first quarter of next year as it aims to ter- minate the analog platform by 2015. Gamaliel Cordoba, NTC chief, told reporters the regulator received the go-signal from the Commission on Information and Communica- tions Technology (CICT) to convene a technical working group (TWG) for the purpose of drafting the im- plementing rules and regulation (IRR) for digital TV. In June this year, the NTC ap-
proved a memorandum circular mandating the use of Integrated Services Digital Broadcast-Terrestrial (ISDB-T) for digital TV migration. The Philippines will be the first in Asia to adopt the Japanese standard.
Besides Japan, other countries that adopted ISDB-T were Brazil, Peru, Chile, Venzuela, Ecuador, Costa Rica and Paraguay. Cordoba said the TWG will be composed of members of the broadcast industry and stake- holders such as the government, suppliers and consumers. “If everything falls into place, the
NTC hopes to complete the transi- tion from analog to digital TV within the next five years,” Cor- doba said. Ivan John Uy, CICT chairman told reporters that the broadcast indus- try is already waiting for the IRR. “They already allotted budget for the acquisition of the equipment and facilities to do that,” Uy said. The Kapisanan ng Broadcaster sa Pilipinas (KBP) had pressed the regulator to expedite the guidelines for digital TV as the termination of the analog platform will take seven to 10 years.
The KBP is keen on the issuance of the IRR and the frequency plan- ning as these will have immediate, medium and long-term effects on the operations of its members. ABS-CBN Corp. earlier said it plans to spend between P3 billion and P5 billion to roll out digital TV nationwide for over five years to improve signal particularly in Metro Manila.
GMA Network Inc., ABC Devel- opment Corp. and the Philippine Long Distance Telephone Co. group also favor the Japanese platform over the European Digital Video Broadcast-Handheld standard. Digital TV is a system for broad- casting and receiving digital sound and video signals that requires a spe- cially designed and more advanced TV set than the traditional analog box. Consumers who still have ana- log TV sets would have to buy set- top boxes to receive digital signals. The set-top box also has the ability to manage many channels in one bandwidth and carry elec- tronic program guides and inter- active programs. According to the NTC, the set-top boxes for the Japanese standard would cost $11, while the price for the European standard gadget would range from $12 to $13. The regulator estimates that around 14 million Filipino house- holds use analog TV sets.
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