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S3/1

CONTENTS VOL. XXVI, ISSUE 27 SECTION 1

2&8 THE ECONOMY 4-5 OPINION 6-7 CORPORATE NEWS 9-10 THE WORLD 11-12 THE NATION

The ECONOMY

TODAYS ISSUE: 3SECTIONS 30PAGES

Manila, Philippines P25 MEtro

SECTION 2

1, 3&4 BANKING & FINANCE 2 STOCK MARKET 5 WORLD MARKETS 6 WORLD BUSINESS 7 BULLETINS 8-9 WORLD SPORTS 10-11 ARTS & LEISURE

I do not expect a repeat of the 2007-2008 food crisis, but neither do I expect that things will be as normal as they have been since 2009 Angelito T. Banayo
S1/8 BANKING & FINANCE

Abaca export earnings fall

S1/2

Slide in T-bill rates expected

S2/1

SECTION 3

S1/1-12
Monday, September 3, 2012

1-6 WEALTH MANAGER

STOCK MARKET 30 days to August 31, 2012 INDEX

5400 5325 5400 5330 5280 5290
5180 5235 5260 5070 5190 5190 4960 5145 5120 4850 5100 5050

46.88 pts. 0.91%

COMPOSITE ASIAN MARKETS

OPEN: HIGH: LOW: CLOSE: VOL.: VAL(P):

5,149.34 5,196.19 5,125.54 5,196.19 2.060 B 7.360 B

% -1.6 -0.36 0.35 1.06 -0.07 0.45 -0.03

AUGUST 31, 2012

CLOSE NET Japan (Nikkei 225) 8,839.91 -143.87 Hong Kong (Hang Seng) 19,482.57 -70.34 Taiwan (Weighted) 7397.06 25.62 Thailand (SET Index) 1,227.48 12.93 S.Korea (Kse Composite) 1,905.12 -1.26 Singapore (Straits Times) 3,025.46 13.64 Sydney (All Ordinaries) 4,339.02 -1.14 Malaysia (Klse Composite) HOLIDAY WORLD MARKETS CLOSE

Feds stimulus hint important for BSP

By Kathleen A. Martin
Reporter The US Federal Reserve chiefs hint of fresh policy easing will be a key consideration when the Bangko Sentral ng Pilipinas (BSP) reviews interest rates next week, a senior official said. This is an important factor to consider in the next meeting of the Monetary Board, BSP Deputy Governor Diwa C. Guinigundo said on Saturday, reacting to Fridays widely awaited speech by the Feds Ben Bernanke where he suggested that the US central bank was ready for a new stimulus. Bernanke indicated that the US economy has not completely turned the corner. Mixed signals from the US economy would show that the economic traction remains weak [and] for this reason, a next round of quantitative easing might be necessary, Mr. Guinigundo said. Important, S1/3

WORLD REVIEW
NEW YORK Heavy trading expected Marking the end of the summer doldrums, Wall Street is likely to kick off September with heavy trading while it hopes that the European Central Bank will hint at further stimulus measures to boost the global economy. On Friday, US Federal Reserve Chairman Ben Bernanke stopped short of giving an explicit signal of more monetary easing. S2/5 Oil tops $114 on volatile trading Oil rose above $114 per barrel in volatile trading on Friday, taking gains in August above 9%, after Fed chief Ben Bernanke stopped short of signaling extra monetary easing was imminent but kept the door open for action. S2/5

AUGUST 31, 2012 NET

Dow Jones NASDAQ S&P 500 FTSE 100 Euro Stoxx50

13090.84 3066.96 1406.58 5711.48 2508.83

CLOSE

90.13 18.25 7.10 -7.97 5.11

NET

WORLD CURRENCIES

AUGUST 31, 2012

$/UK pound $/Euro $/Aust dollar Canada dollar/US$ Swiss Franc/US$

1.5865 1.2578 1.0317 0.9864 0.9549

1.5832 1.2553 1.0330 0.9911 0.9561

PESO DOLLAR RATE 30 days to August 31, 2012

41.60 41.78 41.96 42.14 42.32 42.50

FX
OPEN HIGH LOW CLOSE W. AVE. VOL. P42.280 P42.060 P42.280 P42.060 P42.178 680.72 M

ctvs.
WEIGHTED AVE.

13.7

AFP

Checking the damage

Residents stand next to the collapsed altar wall of a chapel in Basey, western Samar, in this photo taken yesterday. Families are now returning to their quake-devastated homes after a 7.6 magnitude earthquake struck on Aug. 31. (Story on S1/12)

ASIAN CURRENCIES

AUGUST 31, 2012 PREVIOUS 78.62 7.7558 29.912 31.36 1133.1 1.2517 9540 3.123

Japan (yen) Hong Kong (HK dollar) Taiwan (NT dollar) Thailand (baht) S. Korea (won) Singapore (dollar) Indonesia (rupiah) Malaysia (ringgit)

Latest Bid 0900GMT 78.38 7.7554 29.872 31.32 1133.19 1.247 9530 3.123

APEC agenda to be pushed by businessmen

Trade services, food security and the promotion of livable cities are among the issues that a Philippine delegation will raise during this weeks APEC Business Advisory Council (ABAC) meeting in Russia. Philippine priorities until 2015 are trade services, infrastructure development, development of small and medium enterprises through innovation, food security, anti-corruption practices and the promotion of livable cities, said Peter V. Perfecto, executive director of the Makati Business Club, which acts as the secretariat for the ABACs local arm. Doris Magsaysay- Ho, president of A. Magsaysay, Inc.; Tony Tan Caktiong, Jollibee Foods Corp. chairman; and Jaime Augusto Zobel de Ayala, Ayala Corp. chairman and chief executive, will be repreAPEC, S1/3

Tiny Singapore risks economic gloom without baby boom

SINGAPORE History suggests Singapore will enjoy a welcome baby boom in this Year of the Dragon, the most auspicious for births in the Chinese zodiac. But after 25 years of statesponsored matchmaking and fertility-boosting campaigns, the governments attempts to arrest a sliding birth rate are falling flat, with potentially profound consequences for the wealthy Asian city-state. The calls to conception are now urgent and constant to citizens whose fertility ranks last among 222 nations in the US Central Intelligence Agencys World Factbook. Faced with dismal statistics like that, the government has begun a review of population and immigration policy and says it plans new measures to encourage births by the time it publishes the results of its consultation early next year. The message to have more babies is all the more pressing as resentment builds over an influx of foreigners who now make up more than a third of the population of 5.2 million, a factor that is eroding support for the long-ruling Peoples Action Party. We have a problem. The longterm trend is down but we cannot

Inflation likely up anew

Analysts expect inflation to have accelerated further last month due to food supply disruptions arising from heavy rains and floods. A BusinessWorld poll of eight economists and bankers led to a median forecast of 3.55% for August inflation, within the Bangko Sentral ng Pilipinas (BSP) 2.93.8% outlook. Official data for the month will be released by the National Statistics Office this Wednesday. Inflation will tick to 3.5% YoY (year-on-year) in August and this will be the highest reading in seven months, Eugene Leow, economist at DBS Bank, Ltd., said in an email. Food price pressures arising from the recent flood will factor into the headline number, but this should prove transitory, he continued. Inflation rose to a six-month high of 3.2% in July from 2.8% in June. Jeff Ng, economist at Standard Chartered Bank, said in separate e-mail that recent supply disruptions from the storms that affected the Philippines, coupled with rising energy prices, is likely to have contributed to the increase of the headline inflation rate. Monsoon rains battered Metro Manila and nearby provinces last month, triggering floods, killing at least 92 people and displacing more than two million. Inflation, S1/3

Singapore, S1/2

Clarification of mining policy sought

By Diane Claire J. Jiao
Senior Reporter An ongoing overhaul of the countrys mining industry framework very much still in the preliminary stages should not delay planned state asset auctions, the Privatization and Management Office (PMO) said. The privatization of mining claims was subject to the mining EO (Executive Order). It was also involved in the drafting of the EOs IRR (implementing rules and regulations), PMO Chief Privatization Officer Karen G. Singson said last week. EO 79, issued in July, detailed the Aquino administrations new mining policy for the Philippines. Its IRR still has to be issued and central changes such as a new revenue sharing arrangement will require Congress amending relevant laws. In the meantime, a nearly twoyear moratorium on the grant of new mining permits will continue to remain in effect. Among others, EO 79 states that the grant of mining rights and mining tenements over areas with known and verified mineral resources and reserves, including those owned by the government and all expired tenements, shall be undertaken through competitive public bidding. Abandoned ore and mine wastes, mill tailings and related structures and facilities in defunct Mining, S1/3

FEWER BIRTHS mean consequences for wealthy Singapore.

2/S1

The

Economy
Singapore,
from S1/ 1
give up, Prime Minister Lee Hsien Loong said in a speech last week about the nations future. Social and economic engineering is nothing new in Singapore, where a firm government hand helped to steer a small island with no natural resources into one of the worlds most affluent countries in a little over a generation. But the relentless drop in the birth rate reveals the limits of that influence in what has been described as a nanny state. For a global trade and financial center like Singapore, its extremely low fertility rate has implications for economic growth, tax revenues, healthcare costs and immigration policy as the number of elderly people looks set to triple by 2030. There are now 6.3 Singaporeans of working age for every senior citizen. By 2030, the ratio will be closer to 2:1. At current levels, the birth rate implies that the local population will fall by half within a generation, said Sanjeev Sanyal, a Singapore-based global strategist at Deutsche Bank. Even to attract a pipeline of good quality foreign talent, you need sociopolitical continuity and stability that can only be provided by a robust anchor population, he said. Not long ago, Singapore had the opposite problem. From the mid1960s, with post-war baby boomers hitting child-bearing age, the fears were that a population surge would threaten the development of the newly independent nation. With the slogan Stop at two, the government penalized big families, legalized abortion and rewarded sterilization. It was so effective that, by 1987, the policy was reversed and the slogan became Have three or more if you can afford it. Conspiring against more births are powerful contraceptives in the form of intense career pressure, long work hours, small apartments, waiting lists for nursery care and soaring prices. The 2010 census showed Singaporeans are marrying later than a decade earlier. In the age group 30-

Monday, September 3, 2012

Abaca export earnings fall

THE COUNTRYS abaca export earnings in the first semester dropped by 10.5% year-on-year due to slower demand from major foreign markets, government statistics showed. Data from the Fiber Industry Development Authority (FIDA) sent to reporters over the weekend showed that outbound shipments of abaca from January to June were valued at $63.95 million versus the $71.49 million recorded in the same period in 2011. The Philippines exports abaca in the form of raw abaca fiber and various manufactures like pulp, cordage, fabric and fiber-craft to countries in North America, Europe and Asia. The FIDA report noted that sales of raw abaca fiber declined by 63.3% in the first six months to $2.48 million from $6.75 million during the same period a year ago. In volume terms, exports dropped by 58.5% to 16,793 bales for the first half of 2012 from the 40,444 bales shipped out in the first six months of 2011. Raw fiber exports to the Asian region, which comprised 44.2% of the shipments made in the semester, dropped by 73% to 7,420 bales during the first half of 2012 from 27,462 bales reported during the same period last year. The decline was led by an 82.7% decrease in exports to Japan, to which the Philippines was only able to ship out 3,370 bales from January to June 2012 versus the 19,452 bales it exported to the country during the first half of last year. Outbound shipments to China also dropped by 60.7% to 2,970 bales from 7,650 bales. Shipments to Europe, which accounted for 55.8% of the total raw fiber exports this year, likewise decreased by 27.8% to 9,370 bales from the first six months of 2012 from the 12,982 bales recorded in the first half of 2011. Earnings from cordage exports also declined by 6.6% from January to June this year to $7.77 million versus the $8.32 million recorded during the same six-month period last year. Volume-wise, outbound shipments of the product dropped by 13.8% to 3,221.2 metric tons (MT) in the period this year from 3,763.3 MT last year. Cordage exports to majority of the countrys markets declined significantly, led by shipments to countries in Asia, which collectively dropped by 18.9% to 692.3 MT from last years 853.6 MT. Exports to North America also decreased by 16.2% to 2,098.5 MT. Outbound shipments of pulp also declined by 5.9% in value terms as of June 2012 to $49.06 million against last years $52.12 million but still accounted for 76.7% of the industrys earnings in the half. Pulp exports also slightly declined in volume to 14,195.4 MT, 1.8% lower than the 14,458.8 MT recorded a year ago as shipments to North America and European countries declined by 16% and 12.4%, respectively. Exports to Asian markets, however, saw a 39.7% rise to 4,242.4 MT in the first six months of 2012 versus last years 3,037.5 MT. Meanwhile, earnings from the countrys exports of abaca fabrics increased by 32.4% to $694,333 this year against the $524,603 recorded in the same period in 2011. Earnings from fiber-crafts shipments likewise rose by 4.7% to $3.95 million in the first six months of 2012 from last years $3.77 million. The FIDA had said in April that abaca export sales are expected to grow by 10% this year on better demand for various abaca manufactures from the countrys foreign markets. Officials of the agency were not immediately available for further comments. Last year, the country earned $140.3 million from the exports of abaca products, up 34.3% from the $104.5 million registered in 2010. Bettina Faye V. Roc

Chemicals sector submits master plan

By Emilia Narni J. David
Senior Reporter THE CHEMICALS sector has submitted its master plan until 2030 to the Board of Investments (BoI), the Samahan sa Pilipinas ng Industriyang Kimika (SPIK) said in a statement over the weekend. The chemicals sector is one of the industry groups that submitted its policy recommendations to the government. The master plan was submitted last Thursday. Our plans enable us to harness our abundant natural resources, sustainably deployed by Filipino talent to solve Philippines challenges and continuously improve our quality of life, said SPIK President Roberto F. Batungbacal in the statement. Priority Issues The group identified six priority issues that its master plan will seek to achieve its vision for 2030. These are: to create a wide range of products with the best customer value; to satisfy domestic demand and be a leading contributor to exports; and to promote a high level of workforce productivity. Also part of the industry s priority issues are the following: to be innovative in products and processes; to engage in sustainable development and management to protect the natural assets needed by the industry, and; to enhance competitiveness. SPIK said the plan was prepared in participation with the Center for Business Research and Development of the De La Salle University and the chemical industry sub-sectors. The Trade department and BoI have asked industry groups to submit road maps for the plans to grow their industries. So far there are about 38 industry road maps submitted to the BoI. Such industry plans have come from agribusiness groups for coconuts, poultry, coffee, and rubber, to name a few, while plans from the manufacturing sector have come from makers of float glass, plastic, paints and coating, printer ink, petrochemicals, garments, and jewelry. SPIK said it has been working on its road map for three months and have hired the De La Salle University to facilitate the drafting of the road map. SPIK was formed in 1977 with 35 member companies. The groups membership now totals 67 firms.

34, a key time for career, 43% of men and 31% of women were not married. For women in their 40s who were or had been married, those with only one child rose to 19% from 15%. The issue is acute for the ethnic Chinese who make up 74% of Singapores citizens and permanent residents, a majority that has ebbed from nearly 78% in 1990. Ehnic Chinese are having fewer babies than the Malay and Indian communities and are more likely to be single. Officials have sought to balance the call for more children with a message that the country must remain open to immigration to provide the labor and expertise needed for future growth. Not all are convinced. Simmering anger over immigration is widely believed to have contributed to the Peoples Action Partys unexpected loss of seats in last years parliamentary elections. To encourage parenthood, the government gives out baby bonuses of up to S$4,000 ($3,200) for each of the first two children, rising to S$6,000 for the third and fourth. It also matches deposits made into a Child Development Account. The Social Development Network offers free romantic advice by its Dr. Love and oversees the activities of private dating agencies. Some hope for a zodiac-linked baby boom that is borne out by government figures. Births rose in previous Dragon years in 1976, 1988 and 2000, but those were only minor spikes in a steady decline. The government is promising new measures to encourage births and help families but unless career and cost pressures change dramatically, there may be little effect. Can Singaporeans be persuaded to have more children? was the survey question during a recent television panel discussion on the birth rate. Channel News Asias telephone poll may not have been completely scientific, but the answer was clear a resounding 74% of respondents said no. Reuters

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Monday, September 3, 2012

S1/3
Important,
from S1/ 1 Risk appetite in favor of emerging markets assets could be stronger and as a result, capital flows may be sustained including in the Philippines, he added. Mr. Bernanke stopped short of providing a clear signal of imminent action. The Fed next meets on Sept. 12-13 and policymakers have been locked in debate over whether further bond purchases are warranted to spur a stronger recovery. The BSPs policy-making Monetary Board, which cut key rates anew last July 26, will have its own ratesetting meeting on Sept. 13. Whatever decisions are reached will be made before a Fed announcement. The Monetary Board will have to do some balancing act between providing extra cushion against ailments in Europe and the US and the possible asset price inflation, Mr. Guinigundo said. If [domestic] interest rates will further go down, people will be encouraged to go into real estate, equities market, etc., he added. While there may be reason to consider further easing [in key policy rates], it still has to be weighed against the possible asset price inflation in the Philippines even if there is currently no sign of stretch in market valuation. The Monetary Board has cut key policy rates by a total of 75 basis points so far this year. The July 26 adjustment pushed the central banks overnight borrowing and lending rates to record lows of 3.75% and 5.75%, respectively. Several analysts expect at least one more rate cut before the year ends, noting the need to support economic growth and manageable inflation. We are in the best of both worlds. We have a strong economy and inflation rate is very modest, Mr. Guinigundo said. On one hand, you can have the flexibility to reduce your policy rates even lower because inflation continues to be low but the economy may not need stimulus because of [its] strong growth, he added. Mr. Bernanke, speaking at the Kansas City Feds annual Jackson Hole symposium in Florida, said: As we assess the benefits and costs of alternative policy approaches ... we must not lose sight of the daunting economic challenges that confront our nation. Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability. That was a somewhat weaker hint of policy easing than the minutes of the Feds last policy meeting had delivered, but Mr. Bernankes dour economic assessment left few doubts where his sympathy lay. The stagnation of the labor market in particular is a grave concern not only because of the enormous suffering and waste of human talent it entails, but also because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years, he said. In response to the financial crisis and recession of 2007-2009, the Fed cut overnight interest rates to near zero and bought $2.3 trillion in government and mortgage securities in two separate rounds of what has been described as quantitative easing. with a report from Reuters

Inflation,
from S1/ 1 Jose Mario I. Cuyegkeng, director and senior economist at ING Bank NV in Manila, said higher pump prices also pushed up inflation. Weve had a series of price increases of petroleum products over the past few weeks and that would impact on inflation, Mr. Cuyegkeng said on Friday. With inflation expected to remain at the low end of the central banks 3-5% target for the year, four out of the eight analysts said the BSP may cut key policy rates anew before the year ends. Two said rates could stay on hold while the rest declined to comment. Mr. Ng favored another rate cut, saying: the Philippines government has been firmly focused on achieving its growth target this year. With growth in the second half likely to be lower than that of the first, a further rate cut is likely to preempt any loss of growth momentum. The Philippine economy expanded by 5.9% in the second quarter, slower than the previous quarters 6.3% but an acceleration from last years 3.6%. Mr. Leow, meanwhile, noted that the BSP appears keen on limiting excessive peso strength. Another rate cut could reduce speculative demand on the currency. Trinh Nguyen, economist at The Hong Kong and Shanghai Banking Corp., on the other hand expects rates to be kept steady as upside risks to inflation remain. The BSPs policy-making Monetary Board has cut key rates by a total of 75 basis points this year, the latest implemented last July 26. Overnight borrowing and lending rates, currently a record lows of 3.75% and 5.75%, respectively, will next be reviewed on Sept. 13. Kathleen A. Martin

Mining,

from S1/ 1 operations shall also belong to the government, to be developed and utilized through competitive public bidding. At the same time, no new mining permits will be issued until a legislation rationalizing existing revenue-sharing schemes and mechanisms shall have taken effect. The government aims to increase its share of mining revenues, particularly by consolidating the three existing types of mineral agreements into one and imposing a single royalty rate of 7%. However, these initiatives will require amendments to the Philippine Mining Act of 1995 a process that officials fear will be drawn out given industry opposition. While there is no explicit conflict between the provisions, the PMO wants to ensure that the IRR of EO 79 will clarify the issue. We proposed revisions to ensure that the mining IRR did not inadvertently delay governments ability to recover on mining claims assigned to the PMO and are on the privatization pipeline, Ms. Singson said. She declined to give details, though, as the government is still finalizing the IRR, which officials last month said was nearly ready for release. The PMO aims to bid out the governments stakes in four nickel, copper and gold mines as well as its shares in Semirara Mining Corp. Officials have so far declined to identify the specific sites and their potential valuations but the auction is expected to take place in the near- and medium-term, with the Department of Finance already studying the plan. The government privatizes its assets in a bid to raise revenues and lower operating costs. It aims to collect P2 billion from privatization this year and next goals that have basically been met with the P24.331-billion sale of Food Terminal, Inc. early this month. The PMO can go beyond these targets, though, should a privatization pipeline be set, Ms. Singson said.

APEC,

from S1/ 1

senting the Philippines in the ABAC meeting, which is being staged as part of the 21-member Asia Pacific Economic Cooperations annual gathering, hosted this year by Russia. Mr. Perfecto said the Philippines chose to prioritize these issues due to their regional importance. He added that these will hopefully be the core issues that will be discussed in when the country hosts the APEC meeting in 2015. We wanted to discuss livable cities in light of the recent floods ... to underscore the importance of better planning as well as to help promote city centers, he said. Food security is an ongoing issue which we need to continually prioritize in the long term. ABAC delegates will appraise the performance of their respective governments with respect to the regional forums aims. For this years APEC and ABAC meetings, the key issues to be discussed are trade and investment liberalization and regional economic integration, strengthening food security, establishing reliable supply chains and enhancing cooperation to foster innovative growth. We will continue to cooperate with APEC economies and stakeholders to achieve the APEC priorities set by the host economy, Russia, Trade Undersecretary Adrian S. Cristobal said in a statement issued during the weekend. He added there was a need to ensure that economies facing difficulties and challenges do not resort to protectionism. ENJD

4/S1

Opinion
CORPORATE WATCH
RAUL L. LOCSIN Founder

Monday, September 3, 2012

Monday, September 3, 2012

Opinion
INTROSPECTIVE
Ernesto M. Pernia

S1/5

VERGEL O. SANTOS Publisher/ Editorial Board Chairman ARNOLD E. BELLEZA Executive Editor WILFREDO G. REYES Managing Editor CRIS V. PARASO City Editor ALICIA A. HERRERA Associate Editor FRANCISCO P. BALTAZAR Foreign News Editor JUDY T. GULANE Sub-Editor I FELIPE F. SALVOSA II Research Head MIRA CATHERINE B. GLORIA Online Editor

BusinessWorld is published Monday through Friday by BusinessWorld Publishing Corporation, with editorial offices at 95 Balete Drive Extension, New Manila, Quezon City, Metro Manila, Philippines 1112. Telephone numbers: 535-9901 private exchange connecting all departments; Editorial 535-9919, Fax No. 535-9918; Advertising 535-9941, Fax No. 535-9939; Circulation 535-9940; Finance 535-9933; Personnel 535-9936, Fax No. 535-9937. ALL RIGHTS RESERVED. No material in this newspaper can be reproduced in part or in full without previous written permission from the BusinessWorld Publishing Corporation.

Amelia H. C. Ylagan

Back to the bayong

group Mobil in 1977, the plastic bag was copied by many bag manufacturers. US grocery chains like Safeway and Kroger, and department stores Sears Roebuck and JC Penney quickly entrenched the T-shirt bag (sando bag) as the most convenient take-home packaging for goods sold. Environmental activists estimate that between 500 billion and one trillion plastic bags are used each year worldwide. And heres the chilling consequence: due to their durability, plastic bags take centuries to decompose. Imagine the geometric growth of durable plastic littering the land and seas, killing flora and fauna by suffocation and toxification and killing the skies with noxious fumes; slowly killing humans with the leaching of dangerous chemicals into food and drink, and with poisonous gases in the air causing fatal sicknesses; and instantly, mercilessly, killing helpless people with floods caused by clogged rivers and drains. Governments all over the world are alarmed. Many have banned the sale of lightweight bags, charged customers for these or heavily taxed the stores who sell them. Major countries such as South Africa, China (note!), Taiwan and Macedonia have a total ban on the bag. In the Philippines, Pasay, Muntinlupa, Pasig, Las Pias, Manila, and Quezon City have likewise imposed a total ban on plastic bags. In the Philippines, it was the consecutive years of consistently calamitous floods killing hundreds and rendering thousands homeless that begged for the banning of plastic bags. Surely the hair-raising sight on national television of plastic debris that surfaced from the high floods of recent tropical storms Gener, Helen and Igme should have settled any hesitancy about the banning of this most obvious reason for the calamity. But surprisingly, at least 14 business groups are vehemently opposing the ban on the use of plastic bags, saying this would actually be more harmful to the environment. Ylagan, S1/ 5

PHILIPPINE PRESS INSTITUTE

The National Association of Philippine Newspapers

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Mom would be writing a paper list on the kitchen table, as her trusted maid waited for instructions for what to buy from the wet market. Bring the big bayong and two smaller ones, Mom would say. Made from interwoven palm leaves and shaped into oversized open pouches with braided palm-leaf handles, these lifetime-guaranteed shopping bags were indeed 100% washable, tear and scratch resistant, expandable but always springing back to shape. The older these were, the more seasoned and strengthened they were. Some bayongs belonged to Moms Mom! In no time, the four-foot-eight, 85-lb (38.5 kg) little maid returns from the wet market, carrying on her right hand 10.5 kilograms in the big bayong 14 x 20, and on her left hand two small bayongs 8 x 12, each with three kilograms of fruits and vegetables. She has purposely ignored a live chicken, cackling its objections at being strapped to one of the bayongs. And Mom would then be back at the kitchen table, reconciling the arithmetic on the purchases brought back in the trusty bayongs. But that was decades ago. Now only the poor and the lower middle class, and those with small food businesses go to the wet markets. The hotels and the franchised food chains would have sophisticated integration of procurement, snubbing retail wet markets. The upper middle class and the rich go, or send their maids to groceries. But whether fresh produce and meats would be bought from the muddy, slippery, smelly wet markets; from the sterile, air-conditioned groceries; or from bulk suppliers purchases would be in those ubiquitous plastic shopping bags no more the bayong of yesteryears. Lightweight, single-use plastic shopping bags, carrier bags or plastic grocery bags commonly made from high-density polyethylene (HDPE) plastic became extremely popular in the 1980s. After the 1965 world patent of the inventor, Swedish engineer Sten Gustaf Thulin and his company Celloplast was somehow overturned by US petrochemicals

St. Augustine of Hippo (354-430)

St. Augustine of Hippo is one of the heroes of history. He was not a soldier, but he was an original thinker who could hold his own beside the great minds of classical Jos S. Arcilla, S.J. Greece, like Plato or Aristotle. Born in Carthage, North Africa, once described as Carthago Veneris (Carthage of Venue), he died in 430, during the Vandal invasion of North Africa. Aware of his rare intelligence, his pagan father, a municipal official, had wanted him to be a Rhetor (public school teacher). No one would have thought he would later become a great Christian thinker, who authored about 150 essays on varied topics, theology, philosophy, history, political science, etc., today printed in 274 volumes. The most famous perhaps is his Book of Confessions, one ought to read to be considered educated. Many have misread and imitated it, but it is really an inspiring review of all his life spent in looking for wisdom and found in love, Gods love for him. Our heart is made for you, his book begins, and we are restless until it rests in you. This restlessness characterized his pre-Christian life lived to the full, from his youthful adventure of stealing a pear from a neighbors orchard, not because it was better tasting, but only to be able to say he could do it. Alone, he could never have done it, but he had linked hands with his peers to do wrong. A laugh, a tickling of the heart, he wrote in the Confessions. His search led him to embrace the Manichaean dualism that taught good and evil were two elements eternally grappling to control the human heart. It was an attractive view which promised the intellectuals deep spirituality and total knowledge, Gnosis, or revelation on the origin of the world and mans final destiny. But discussions with its adherents disappointed Augustine, for they unwittingly bared their ignorance of the Holy Scriptures on which the Manichaeans based their teaching. His saintly mother, Monica, followed him to Rome to try to keep him on the straight path. He had loved a woman who bore him a son, Adeodatus (God-given). Augustine later wrote, I did not yet love, but I loved to be loved. To love and be loved would be sweeter if I could also relish the body of my beloved. Years after Monica had sent Adeodatus mother away, the pained Augustine realized that physical and sexual relations are perfect when they flower from an unbroken human love. But this is nothing, when compared to the experience of being loved by God. The simplicity of the sermons of St. Ambrose, the Archbishop of Milan, fascinated Augustine. Still restless and interiorly disturbed, he read of the hermits and monks whose ascetical life and total poverty fascinated him. One day, he chanced upon a passage of the Epistle of St. Paul to the Romans: Let us live honorably as in daylight; not in carousing and drunkenness, not in sexual excess and lust, not in quarreling and jealousy. Rather, put on the Lord Jesus Christ and make no provision for the desires of the flesh. This changed his entire outlook. He gave up his teaching position, and retired to the silence and peace of a rustic villa, Cassiciacum, north of Milan. There, with a few pious friends, like him in search of true interior happiness, he gave himself to prayer and self-examination. In 387, with his son Adeodatus and a constant companion, Alypius, he was baptized into the Catholic Church. Sick in early childhood, he might already have been baptized, but it was not confirmed on his recovery. Since then, Augustine walked the narrow path, under the light of Scripture. Ordained to the priesthood, he was consecrated Bishop of Hippo, and was known to travel all over his diocese once on a journey 1,000 kilometers long just to meet his flock. Looking ahead to his death, he called it the last voyage known as death, is the only one actually we should plan.

Regional development and urbanization

In other words, while remittances do contribute to absolute poverty alleviation, they seem to help foster lopsided regional development besides exacerbating income inequality across households (as noted in my column, BW, 4/2/12). The relative prosperity of the mega-urban region, however, is not without costs in terms of increasing congestion and pollution, making it precariously exposed to environmental disasters, as the experience with Ondoy in September 2009 and more recently with Habagat poignantly illustrates. The special chapter of ADBs Key Indicators for Asia and the Pacific 2012 comes as a timely reminder. It points out that of the Philippines total urban population, some 3.7 million are vulnerable to inland flooding and 6.8 million are seriously at risk of coastal flooding. Environmental stress that comes with rapid urbanization is a reality in other Asian countries as well. According to the ADB report, since the 1980s Asia has been the fastest urbanizing region in the world such that it now accounts for nearly half of the worlds total city dwellers. In a little over a decade, it will own 21 of the worlds 37 megacities, and our MM will be one such. The report further says: Asia must follow a green urbanization path by instituting policies that help improve efficiency and conservation of resources and promote the use of new technologies and renewable energy. It points to waste-to-energy conversion plants, smart electric grids, building houses in safe places, investing in drainage and flood barrier infrastructure. These examples are actually not new; theyve been bandied about for some time but resolute and sustained action have almost always fallen short. In the broader context, green urbanization connotes the good old objective of regional development. I hark back to a simple recommendation in a paper on spatial development and urbanization for the NEDA (1994) I wrote with Rex David Israel (a graduate student), essentially echoing a policy implication in the above-mentioned book. We said: In addition to policy reforms that emphasize the economys comparative advantages and endowments, with the likely effect of reducing the NCR bias, there must be a deliberate effort to attend to the needs of the regions. In practice, this may simply mean improving access to basic infrastructure, education and health services Reasonably adequate basic [physical and social] infrastructure, in addition to clear and consistent policies and procedures, seems to be the key to increasing investments in and improving the performance of regional economies. The late Secretary Jesse M. Robredo worked tirelessly unheralded to energize and empower local governance in the regions with promising results. Lets hope his successor carries on the good work he started. Prof. Ernesto M. Pernia is with the UP School of Economics, fellow of the Institute for Development and Econometric Analysis, and former lead economist of the ADB. For comments and inquiries, please email us at idea.introspective@ gmail.com. To know more about IDEA, please visit www.idea.org.ph.

VESTIGES

FEATURE

Syrias rural economy adapts as conflict spreads

AL DANA, Northern Syria For the past six months, farmer Hisham al-Zeirs wife and daughters have been up before sunrise each day when its still cool, baking traditional tanoor bread in a century-old clay oven in their home in Syrias rich agricultural province of Idlib. Rather than selling all his wheat to the state as he usually does, Zeir decided this year to keep almost a third of it to ensure his wife and six children have enough food to survive on as the conflict in the country spreads. I am putting it aside to eat from until Allah eases on his people and things become clearer, Zeir said in the courtyard of his modest farm on the outskirts of the town of Al Dana in Idlib, a region of gently rolling hills and olive groves that supplies a large proportion of Syrias fruit. Zeir is one of many Syrian farmers who have adjusted production during the crisis in order to grow enough produce for their own consumption and for use in exchange for other goods. Eighty percent of people in Idlib live in the countryside, compared to only 40% of Syrias total population of 20 million, making it the most rural province in the country. The rural poor have been big supporters of the 17-month uprising against President Bashar al-Assads rule and their towns and villages have borne the brunt of the armys campaign to crush the rebellion, in which at least 18,000 people have been killed. Although the Syrian economy has been hammered by the conflict economists say it could contract by a fifth or more this year, but have no way of knowing for sure and much of the countrys industrial production has been hit, the rural economy has been less affected by the turmoil. A subsistence economy in these rural areas has in many cases allowed people to produce their own food needs. Peoples ability to live off their land has helped in this crisis unlike urban dwellers, Samir Seifan, a prominent Syrian economist. Enterprising rural communities have during times of conflict taken advantage of an abundance of land to grow cereals, olives and cotton. The current crisis is reversing a decade-long exodus of rural residents to cities like Damascus and Aleppo, which exacerbated a wealth gap, as many are now fleeing violence in the cities and returning to villages. The conflict is never far away, however. A mortar has hit and killed two of my sheep and destroyed our yard, said Omar al-Natour, a day after army shelling at his house in the town of Al-Sahara in Idlib. Natour, 45, a father of six, is no longer able to go to his job at a stateowned factory producing cement for construction in Aleppo because it lies in an area where army snipers fire at rebel hideouts. Instead, he supplements his meagre income by rearing cattle and other livestock. Food production has been rising in Syria in recent years despite sharp fluctuations in harvests and bouts of drought. That has helped diversify the economy, and in the present conflict, staved off significant food shortages in the countryside so far, residents and Damascus-based economists said. They contradict the United Nations Food and Agriculture Organization and the World Food Programme (WFP) who estimated this month that about 1.5 million people in Syria need immediate food aid and one in three rural residents would need help. Across the country, agricultural production, which officially accounts for 20% of Syrias gross domestic product, continues, despite a shortage of seasonal laborers who once flocked to work in the fields during the harvest period. This has secured adequate supply of vegetables such as tomatoes and cucumbers, staples of the Syrian diet, as well as grains, even though the high cost of tractor fuel and a lack of fertilizer has reduced the amount of cultivable land. As the fighting in Syria shows no sign of abating, the populations of some rural towns in Idlib have surged, including Darat Azah and Al Dana, as they have been spared the wider destruction of towns such as Taftanaz and Atareb, where many houses have been pounded to rubble by tank fire. To some extent, Syrias highly regulated economy with its costly government subsidies, which keep electricity prices artificially low, and restrictions on imports have helped control inflation and stem a further decline in living standards for poor farming communities. Independent economists say inflation has not exceeded 30% despite the crisis. There are lower quantities of food but no food shortages in Syria ... there are people who are supplying food. As you know, in every crisis, there are those who profit, said a senior Syrian official who works at the state wheat procurement agency. Reuters

FENCE SITTER
A.R. Samson

Political willpower
political will, if not moral courage, never mind which side of the debate youre on. The phrase political will is often only cited for its absence. It is always a lack of political will that is invoked when an issue is unresolved. Its as if the responsible authority only lacks determination to resolve a problem. Little is said about the complexity of an issue and the vested interests that need to be consulted if not bamboozled altogether, or even the hardheadedness of the citizenry itself, as in the case of informal settlers that need to be transferred in the issue of flooding. Its not just political resolve that is responsible for an impasse. There are to be sure certain issues that do not attract political will, due to their lack of salience or significance, requiring all to have some opinion on them. Here we may include such limited-appeal issues as bicycle lanes, animal rights, shunning of plastic bags for groceries, or genetically modified corn. A handful of people may be passionate advocates of these issues but they do not really keep the rest of us awake at night. Media take it upon themselves to define matters that require the application of political will. As self-appointed critics of politicians, media often limit their role to declaring the lack of political will, say in prison escapees or the rise of fuel prices. Not all these matters are moved by willpower but that seems to be a minor point. Public smoking is an example of political will that has worked. In most public places (except sidewalks outside buildings) smoking is now banned, a result of the application of the political will of local governments and advocacy groups, where individual willpower and an honor system have not worked. Political will does not exist in a vacuum. It should also not be limited to public leaders but extend as well to ordinary citizens. People perhaps would rather narrow their focus to what they can do, like bringing down their weights than mobilizing others for a cause. Weight watchers of the world unite; you have nothing to lose but your baby fat.

Studies ON willpower show that determination is acquired early. The famous marshmallow test in the sixties was conducted on four-yearolds. A bowl of marshmallows was left in the room and the children were told that if they waited for the researcher to return they could have two marshmallows instead of one. Those who deferred gratification and waited for the double treat were tracked and seen to have turned into more successful and goal-oriented adults. Willpower is invoked for personal goals requiring the overcoming fear or the need to undergo hardships. This can include preparing for a triathlon event, quitting smoking, looking meek before an abusive boss, or losing forty pounds. And if this cannot be accomplished alone, support groups are formed to buttress personal resolve in a setting where an individuals success is helped by peer pressure. Does political will too fall under the category of personal determination? What exactly is it? Is it merely an extension of an individuals willpower? Does the same determination to quit smoking, when brought into the public arena, translate into ensuring the adherence to the straight and narrow path, not only by the bureaucracy but by the citizens themselves? Are being law-abiding, the determination to fall in line without calling on influence, the willingness to pay the right taxes, and the readiness to get a traffic ticket without resorting to a small bribe also part of political will? Why is this concept only seen to apply to government officials? Only a handful of issues seem to require political will. Examples include the eradication of jueteng in a province or the imposition of strict traffic rules in the metropolis with the buses staying inside the yellow lane. Larger issues like the eradication of poverty or the privatization of infrastructure require both political will and competence. An issue then must be intense and even polarizing to invite the ambit of political will. The code words choice (accepting the right to prevent or curtail life) and right to life (condemning it), applying to reproductive health, fall in this category. Such an issue is eligible for some kind of

Regional development used to be a buzzword in academic and policy circles from the late 1960s through the 1980s. That it has faded in recent years reflects perhaps a general sense of disappointment with the countrys regional development that has become more lopsided than balanced. Balanced regional development, or reduction of intra-country regional inequalities, has been a policy objective of many a developing country for several decades back. In the Philippines, policy instruments toward this objective included direct industrial location controls (e.g., the 50-kilometer-radius ban against the location of industries in Metro Manila), investment incentives in favor of lagging regions, industrial estates, special economic zones, integrated area development, and regional growth centers. In a book sponsored by the Philippine Institute for Development Studies titled Spatial and Urban Dimensions of Development in the Philippines (1983), we (Pernia, Paderanga, and five graduate students at the UP School of Economics) showed that the regional policies had been largely ineffective in countering the more potent biases for urban agglomeration induced by macroeconomic and sectoral policies. These were earlier dubbed by Gerry Sicat (1972) as innocent looking policies biased toward industrial concentration that hampered the pace of regional growth. In other words, explicit policies for balanced regional development were no match vis--vis macroeconomic and sectoral policies that effectively acted as implicit spatial concentration policies. These were mostly part of the import-substitution industrialization strategy initiated in the 1960s, including exchange rates, tariffs, and tax/subsidy schemes for specific industries. They tended to draw industries and firms to locate in or around Metro Manila (MM) to be close to agencies dispensing foreign exchange and fiscal incentives besides those issuing licenses and permits. Add to these the budgets for infrastructure and social services that favored established urban centers at the expense of provincial towns and rural areas, then one realizes why the governments regional development objective remains elusive. MM or NCR (National Capital Region) accounted for about 30% of the countrys total output in 1988, expanding to 35.7% in 2000 and 35.8% by 2010. The corresponding population shares were 13%, 13%, and 12.8%. If NCR is merged with neighboring Central Luzon and Calabarzon, such a mega-urban region would claim well over half to just under two-thirds of GDP, and population share from 37 to 40% of total, over the same period. Since the GDP shares of both NCR and the notional mega-urban region were larger, to begin with, and growing appreciably faster than their respective population shares, one can readily infer that people in these regions have been getting richer than those in the other regions. Which has been at the expense of the perennially lagging regions such as those in Mindanao, Bicol, Eastern Visayas, and Cagayan Valley, as well as agriculture in general. Further compounding such regional inequality is that most of the higher-earning overseas labor migrants originate in the mega-urban region plus Central Visayas. Consequently, the bulk of remittances go to the richer regions while smaller shares get to the less developed ones.

BEYOND BRUshsTROKES
Marivic Rufino

Saving the biosphere

largest trees, the biggest game, the heaviest fish, the oldest corals are vanishing from the earth. They are dying for sport, profit and manipulation of the planet, he emphasized. We will lose much of the collective wisdom of the planet. How can we save the Earth? By being aware and involved. Everyone can make a difference. We should begin now. One can rarely gaze at a clear cobalt blue sky. In the metropolis, a haze of dust hovers like a smothering blanket. The foliage and trees are turning gray and brown. The bay is littered with debris tossed by passing ships and boats. The fishes and marine life are slowly dying. In our corner of the world, pollution is our plague. It threatens the health and well-being of generations. What goes around comes around. It is the cycle of nature and the law of karma. Here are some facts on hazards around us: Decaying garbage in open dump sites emits toxic methane gas. About 85% of households and establishments located near Manila Bay used to flush untreated sewage and garbage into the bay. The tissues of fishes form Manila Bay, Laguna Lake and Cavite revealed traces of lead, cadmium, copper, silver and hydrocarbon compounds beyond safe levels. Leachates from dumping sites (San Mateo, Rizal and Payatas, Quezon City) contaminate our water system. Incinerators release smoke that exacerbates air pollution causing respiratory ailments, skin and eye allergies. Dust, burning rubber and plastic fumes, soot, carbon monoxide and lead emissions from factories and vehicles (buses, trucks, tricycles, taxis and jeepneys) are sources of toxic carbon monoxide. The fearsome red tide is the karmic result of pollution: septic industrial and human wastes dumped into the rivers and sea. People continue to ignore the warnings about the perils of eating poisoned shellfish. The vicious cycle claims hundreds of lives year after year. Poetic retribution?

Ylagan,
S1/ 4 The business groups include the Philippine Chamber of Commerce and Industry, Federation of Philippine Industry and Philippine Exporters Confederation, who had a full-page advertisement in major newspapers last week to denounce the plastic ban. The other business groups are the Federation of Filipino-Chinese Chambers of Commerce and Industry, Employers Confederation of the Philippines, Pollution Control Association of the Philippines, Samahan ng Pilipinas sa Industriang Kemiko, Association of Petrochemical Manufacturers of the Philippines, Packaging Institute of the Philippines, Polystyrene Packaging Council of the Philippines, Philippine Plastics Industry Association, Metro Plastics Recycling Industries, Philippine Association of Supermarkets and Philippine Amalgamated Supermarkets Association. Those batting for plastic bags argue that plastic is not that bad, and the alternative, paper bags, are just as harmful to the environment, both in the production and the use. Production emissions are said to be decimated in the case of plastic bags, which are recyclable and reusable, versus the repeating production costs and damage to the environment in cutting trees for paper. Litter and pollution are supposed to be controlled by segregation of waste (in plastic bags!) and the end-goal of proper garbage disposal (including composting). This assumes that 95 million Filipinos are disciplined and zealously environment-conscious in spite of the necessary cost and effort for such noble determination. The trade groups and plastic manufacturers say that there are some 200,000 workers of the plastic industry who may lose their jobs with the plastic ban. That would be 0.002 of the population perhaps unwittingly collaborating to do damage to the 95 million (including themselves) Filipinos. The protestors against the plastic bag ban might just be too shy to acknowledge that the big issue is really their business bottom line, a scandalous multiple of the petty amounts paid to 200,000 lowly workers of the plastic industry. Besides, dislocated workers can be re-trained and businesses reengineered for the production of alternatives to plastic bags. Surplus cloth from flour bags and other goods that cannot be packed in stifling plastic (which encourages more mold from trapped humidity) is already being recycled into reusable cloth grocery bags. Other shoppers bring collapsible/foldable bags to hold grocery and mall purchases. Big shoppers roll their own convenient wire pushcarts (like enclosed baggage trolleys) feeling very chic, in the fashion of American shoppers. And why not revive the bayong? There has to be a use for the natural, organic leaves of palm and other long-leafed plants so abundant in the Philippines. The material for the dearly departed and obsolete banig (native bed mat) can be re-styled into the more utilitarian bayong. Cloth rejects and old clothes, curtains, etc. can likewise be sewn into reusable, washable bayongs. It could be a whole, very active industry, sensitive to the environment. On top of all of this, the very Filipino bayong will have also revived a very important but forgotten everyday icon of our cultural history. ahcylagan@yahoo.com

YELLOW PAD
Jon Frost

Second-best solution for growth 1

strategy first to ensure consistency with the central bank. Policies like fiscal responsibility through strengthened taxation and avoiding populist spending and limiting foreign borrowing would be important. These would support the exchange rate policy and ensure the central bank and government are not pursuing incompatible goals. I have a couple of further thoughts on this line of argument, some critical, some supportive. First, not every country can have an undervalued exchange rate. As the experience at both the global level and in Europe shows, there are two sides to every coin. Exchange rate regimes have been one factor in the massive global imbalances between China and the oil producers on the one hand, and the US and some others on the other. Persistently higher inflation rates in Greece, Spain and Ireland, combined with wage moderation in Germany, have led to huge imbalances within the euro area. The problem is generally larger on the side of deficit than of surplus countries. Yet, if the Philippines has an undervalued exchange rate, and with it current account surpluses, and export growth, someone else must have an overvalued exchange rate, and hence current account deficits, and import growth. The exchange rate is a relative price between two currencies, and by definition not all countries can pursue undervaluation. There could be an argument that developing countries should be the beneficiaries of undervaluation, as growth is a clear policy priority also for the developed world, which spends significant sums on development aid each year. After all, the relative impact (cost) for the global economy is likely much smaller and more broadly borne than the impact (benefit) for the Philippines. Yet someone else would have to bear the burden of overvaluation. Second, this is precisely the sort of question that should be discussed multilaterally. Specifically the IMF would be the forum to bring this up. It is true that it is difficult for countries like the Philippines to get strong backing for a change in IMF policy (and policy advice) on their own. But it is the job of the IMF to serve as the machinery for consultation and Frost, S1/ 5

In a chapter of Philippine Institutions: Growth and Prosperity for All (2010), Filomeno S. Sta. Ana III of Action for Economic Reforms makes the case for an undervaluation strategy for the Philippines. By this, he means not a specific nominal value for the exchange rate (a fixed regime) but rather a policy led by the government, with central bank support aiming at real depreciation of the peso, as measured by the real effective exchange rate. He argues that this strategy would support export-led growth and help prevent costly balance of payments crises resulting from bouts of over-valuation. He notes that this is a second-best means of promoting growth, given that reform of institutions and markets the first-best solution will take a long time to be effective. In this, he cites work by Harvards Dani Rodrik, which shows that real exchange rate undervaluation can have a positive and significant effect on growth for developing countries in general. Rodriks point that focusing only on institutions is like telling developing countries that the way to get rich is to get rich is well-taken. Yet aside from Rodrik, there are other well-known economists who have made arguments along these lines. John Williamson, who coined the term Washington Consensus, also supports some undervaluation for developing countries, and also intermediate exchange rate regimes in between fixed and fully floating. Former Fed chairman Frederic Mishkin, who is cited several times in the paper for his 1997 paper with Bernanke, has pushed for a more flexible approach to inflation targeting which could allow central banks to pursue an exchange rate goal alongside low inflation. The experience of China and some others shows that undervaluation may be helpful for domestic growth and exchange rate stability even during the crisis, when financial contagion and the impact on growth were relatively limited. Of course, this also relates to Chinas closed capital account, and says nothing of spillover effects of the fixed exchange rate regime on other countries. I appreciate Mr. Sta. Anas point that the government should adopt the

Humanitys FUTURE is linked to a healthy biosphere. Sir Peter Blake, Cousteau, Societys head of Expeditions The biosphere is the global ecosystem composed of all life forms or organisms (biota) and abiotic (non-living) factors from which they derive energy and nutrients. It is the thin life-supporting stratum of the Earths surface that extends from a few kilometers up into the atmosphere and down into the deep sea vents of the ocean. Water is vital to life on earth. Healthy oceans and rivers are essential to a healthy biosphere. To illustrate, imagine the biosphere as equivalent to the human body with ecosystems serving as functions of organs and tissue systems. The great forests are the lungs. The atmosphere and ozone layer protect the body like fur. Wetlands are the reproductive organs. Rivers and arteries are the fluids of the body. All these systems should function properly to keep the body alive. The planet Earth is in grave danger. Its natural resources are being depleted. Animal and insect species are disappearing. Soil erosion and widespread deforestation cannot be stopped. The oceans are being used as dumping grounds for industrial waste products, human and agricultural runoff. Life forms are dying. More than half of the coral reefs are under high stress because of foul water and intolerable climate changes due to global warming. The icecaps are glaciers are melting. Mr. Blake revealed that the estimated of the worlds ecological goods and service that make the world habitable was more than $33 trillion. These consist of the following: oxygen content of the atmosphere from photosynthesis; all the biochemical cycles; water cycle; productivity, production for all animals; and the ozone layer (that protects us from harmful UV radiation. Long-term commerce and sustained economic prosperity depend on healthy human populations. Institutions should promote sustainable energy. Looking at the way we live and asking a few smart changes will have a huge benefit for future generations Wherever we look these days, the

Frost,
S1/ 4 collaboration on international monetary problems (Article I.i of the Articles of Agreement) and to promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation (Article I.iii). The last point is very sensitive in practice, especially given the criticism of Chinas exchange rate regime, and the considerable pressure from the US. The IMF has recently done new work and created a methodology to assess exchange rate misalignments as part of the External Balance Assessment. This allows policy makers to better understand external imbalances. But this applies only to imbalances in the big systemic economies, i.e. China, the US, UK, euro area, Japan, and a number of larger advanced and emerging economies. A little bit of undervaluation in a developing country could probably be tolerated, if this is seen as support for a development strategy. Yet it should be presented and discussed multilaterally. Third, there is an important link with other policy areas like capital account openness, due to the so-called impossible trinity. In the next column, we will look at implementation of an undervaluation strategy, and specifically the relationship with inflation targeting and capital account liberalization. Jon Frost is an economist at De Nederlandsche Bank (DNB), the central bank of the Netherlands. The views expressed here are his own and do not necessarily reflect those of DNB.

6/S1

Corporate News
once a week for three consecutive weeks, adding that parties opposed to the granting Delta Air Lines application should submit their written opposition on or before the date of CABs hearing. FACP is the counterpart of the certificate of public convenience and necessity, which is issued local airlines to allow them to operate for five years. The application comes as the permit of the Delta Air Lines, which operates daily flights between Manila and New York and Detroit, expired last July, documents showed. Ma. Elben S. L. Moro, head of CABs Hearing and Examiners Division, has said airlines are allowed to file their petition for permit renewal up to a month after expiration date. Wyrlou E. Samodio, CABs head of Legal Division, said the filing for permit renewal is far easier than applying for one the first time. Basically, we will just review and then check the updates on the documents they previously submitted; so this is far easier than [applying] for a permit [the first time], he said in an interview on Wednesday last week, adding that carriers applying for permit renewal will be examined for their legal, financial, and technical fitness. Like, are you designated by your country to operate here? Are you financially stable to mount operations here and do you have planes to be used for operations, which is obviously not a problem in the case of Delta Air Lines, Mr. Samodio explained. Delta Air passenger traffic in the Philippines grew 7.22% to 101,859 in the first quarter from 94,996 in the same period last year, CAB records show. Cliff Harvey C. Venzon

Monday, September 3, 2012

Delta Air seeks permit to operate for another five years

DELTA AIR Lines, Inc., one of the worlds biggest carriers, is seeking to renew its permit to continue operations in the Philippines for another five years, Civil Aeronautics Board (CAB) documents showed. Notice is hereby given that Delta Air Lines has filed with CAB a petition for renewal of the Foreign Air Carriers Permit (FACP) to operate international scheduled air transport services, read a notice, dated Aug. 22, which also said a hearing has been set on Sept. 18 at CABs office in Pasay City. The regulator also ordered the airline to publish the notice

REuters

AN AIRCRAFT of Delta Air Lines, Inc. is shown in flight in this photo taken last Aug. 28.

ETF rules seen issued by months end

THE SECURITIES and Exchange Commission (SEC) hopes to release by the end of the month the long-anticipated rules on exchange-traded funds (ETFs), a top official of the regulator said over the weekend. Our self-imposed deadline is end of September. Comments still have to be considered, SEC Chairman Teresita J. Herbosa said in a text message last Saturday, adding that remarks private sector representatives made in past consultations are now being consolidated. An ETF is similar to a mutual fund which will allow a market player to invest in a basket of stocks through a single security, which then tracks and matches yields of a market index. The Philippine Stock Exchange (PSE) has been pushing ETFs revival to grow and diversify the countrys equities market after their operation for a few months in 2003. SEC has directed its Market Regulation Department (MRD) and Corporate Finance Department (CFD) to evaluate and consolidate comments collected during public consultations held from July 16 to Aug. 6. Our MRD is collating the comments, Ms. Herbosa said, even as she declined to elaborate on the comments. MRD and CFD will hold up to two meetings before submitting the rules to the SEC en banc. Were going to have one or two meetings first before the formal presentation to the en banc. It will be the MRD that will make the presentation Justina F. Callangan, SEC CFD director, said in an interview last Wednesday. The proposed rules which are pursuant to the Investment Company Act (ICA) of 1960 classify ETFs as open-ended investment companies, that must be SEC-incorporated, thus allowing ETFs to skirt ICA provisions that state that mutual or trust-fund type products do not qualify as investment firms, which in turn are defined as entities primarily engaged in the business of trading securities. ETFs will be subject to standards on regular public disclosure

Suspension of Globalport trading averted

THE PHILIPPINE Stock Exchange (PSE) will no longer proceed with suspension on trading of shares of port operator Globalport 900, Inc. as the firm has submitted its overdue financial report. An Aug. 31 memorandum posted on the bourses Web site said Globalport has submitted its second-quarter report that was due on Aug. 22 and paid corresponding penalties for delayed submission. In view of [Globalports] compliance with the structured reportorial requirements under [PSE] rules, the trading of the companys shares will not be suspended, the memorandum circular read. Last Wednesday, the PSE announced it would suspend trading of Globalport shares beginning today due to the companys delayed quarterly report. Section 17.8 of PSEs Revised Disclosure Rules says listed firms that fail to comply with reportorial requirements shall be automatically suspended for up to two months. FJGDLF

THE PHILIPPINE Stock Exchange wants to grow and diversify the countrys equities market.

jonathan l. cellona

of financial information, investment policies and objectives, and fund portfolios as well as pricing and fees, the draft said.

ETF requirements include a minimum paid-up capital of P250 million and an all-Filipino ETF board of directors. Also, those who

will manage ETFs must have at least five years experience in fund management. Franz Jonathan G. de la Fuente

Panay Electric opposes NGCPs acquisition plan

ILOILO CITY Panay Electric Co. (PECo), sole distribution utility here, has voiced its opposition to the plan of the National Grid Corp. of the Philippines to acquire the transmission assets of Panay Energy Development Corp. (PEDC). Randy S. Pastolero, PECo vice-president for operations, argued that the plan could end up raising electricity rates in the city. He noted that NGCP stands to earn at least P400 million a year in transmission fees from Iloilo City consumers. In less than two years, NGCP can recoup its acquisition and will continue to earn P400 million while it operates state transmission lines, he added. Aside from PECo, the business sector, Iloilo City government and Senator Franklin M. Drilon are opposing NGCPs acquisition plan, citing the same fear. Mr. Pastolero said acquiring power from the Wholesale Electricity Spot Market (WESM) would expose PECos customers more to volatility, as pricing in that facility moves according to prevailing market prices. WESM is not like the switch which we can turn on or off depending on our needs, Mr. Pastolero said. We have to haggle with suppliers to be prioritized in the trading. And we have no assurance that we can get cheap power when we need it during our peak demand periods, he added. COMPROMISE As a compromise, he said PECo will not oppose the acquisition plan if this does not include the PEDC switchyard for the coal plants protection and to prevent NGCP from charging higher transmission fees to Iloilo City consumers. The residents of Iloilo City fought for the construction of the plant inside the city for the sole purpose of avoiding transmission charges, he said. If NGCP succeeds in its bid, we will lose that advantage. PEDCs coal-fired plant supplies 60 megawatts to PECo. Iloilo Citys consumers are expected to pay an additional P1 per kilowatt-hour in transmission charges if the NGCP acquires PEDCs transmission assets. If NGCP wants PECo to connect to the grid, it can do so by tapping its own line from our substation in Baldoza, La Paz to PEDCs 138-kilovolt line which leads to NGCPs substation in Sta. Barbara, Mr. Pastolero explained. NGCP is asking the Energy Regulatory Commission to approve its plan to spend P695 million for the acquisition of PEDCs transmission assets. The acquisition will cover the plants switchyard and transmission lines leading to NGCPs substation in Sta. Barbara town, Iloilo. Francis Allan L. Angelo

Monday, September 3, 2012

Corporate News
ing equipment, DoTC had said last year. MRT-3 currently transports an average of 500,000 passengers per day, well beyond its capacity of 350,000, according to the Light Rail Transit Authority. Asked if the new proposal includes linking the MRT-3 line to the Light Rail Transit Line 1, Mr. Lim replied, It is not specifically emphasized in this one (new proposal), but the intention is to integrate it. MPIC had also offered to buy out the governments stake in the venture for $350 million and run the MRT-3 for 30 years. The government, through Land Bank of the Philippines and Development Bank of the Philippines, owns 22.3% direct stake in MRTC, which owns MRT-3. In 2010, MPIC acquired the 29% stake of Fil-Estate Corp. in the railway firm. Last June, outgoing Transportation Secretary Manuel A. Roxas II said that the Office of the Solicitor General was still studying the ownership structure of MRT-3 as the department wanted to clarify this issue before entertaining any proposal for the railways upgrading or expansion. MPIC projects core net income to hit P6.3 billion this year, 26% more than the P5 billion earned last year. Core net income jumped 30.08% to P3.46 billion in the first half from P2.66 billion last year. Shares of MPIC rose four centavos or 0.97% to P4.17 apiece when the stock market closed on Friday. MPIC is the local unit of Hong Kongs First Pacific Co. Ltd., which partly owns Philippine Long Disance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a minority stake in BusinessWorld. C. H. C. Venzon

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Metro Pacific revises MRT-3 proposal

METRO PACIFIC Investments Corp. (MPIC) has submitted a revised proposal to the government to expand the Metro Rail Transit 3 (MRT-3) line, an official said late last week. We just gave it (amended proposal) to them (Department of Transportation and Communications, or DoTC) yesterday, MPIC Chief Executive Jose Mari K. Lim told reporters on Thursday. Its an unsolicited proposal, so it has different legal framework. In the first proposal, it is an assumption of the existing contract. We will take over the company (Metro Rail Transit Corp., or MRTC) and expand it he added, hinting the new proposal entailed a new concession agreement altogether. Under the new proposal, the [DoTC] will give us a new concession overlaying [sic] the existing contracts. Mr. Lim added that MPIC will be undertaking the project with Ayala Corp. The two conglomerates in May signed a memorandum of agreement to form an exclusive strategic partnership to jointly pursue and develop light rail projects in the greater Metro Manila area. DoTC Undersecretary for Legal Jose Perpetuo M. Lotilla yesterday confirmed that MPIC submitted a revised proposal for MRT-3. [I] just received it. [Im] still going though it, Mr. Lotilla said in a text message. MPIC last year submitted a $300-million bid to expand the operations of the 16.95-kilometer railway that runs along Epifanio de los Santos Avenue (EDSA) from North Avenue in Quezon City to Taft Avenue in Manila. MPICs plan was aimed at doubling the railways capacity to 700,000 passengers per day by acquiring 73 new trains and signal-

Century Properties plans provincial expansion

REAL ESTATE developer Century Properties Group, Inc. plans to introduce its lowest-priced line to more cities outside Metro Manila as it aims to increase contribution of these projects to total sales to 46% by the second quarter of 2013 from 41% currently, an official said over the weekend. In a statement last Saturday, the developer said it will be launching more affordable master-planned developments in major cities nationwide following its announcement last July of work on The Residences at Commonwealth by Century mid-rise residential complex in Quezon City. Just the first Our Commonwealth project is only the first of a series of masterplanned development that Century plans to roll out in key cities nationwide for this category, Jose Marco R. Antonio, Century Properties managing director and cochief operating officer, said in the statement without offering details. We recognize the demand for residential property outside Metro Manila and this is part of our expansion plans. Century had said in July that units in its Commonwealth project will sell for as low as P1.5 million to over P5 million. Since the launch, reservation sales for the Century by Commonwealths two towers have been well-received, Century Properties claimed in the statement without elaborating. Century Properties said that by the second quarter next year, contribution of affordable projects to the companys pre-sales should have increased. We will aim for

commonwealthbycentury.com

THE COMPANY announced in July that it is developing a 4.4-hectare, eight-tower, mid-rise community in Quezon City, called: The Residences at Commonwealth by Century, marking its move to the affordable residential market.

46%, Terrie Fucanan-Yu, vicepresident for corporate communications, said in a text message last Saturday. In the second quarter, Century Properties booked P5.4 billion in pre-sales, with the luxury segment accounting for 19%, middleincome segment making up 40% middle-income, and the affordable line, 41%, the statement said. The market is hungry for unique products with intrinsic value and attainable monthly amortizations stretched over a two-year to five-year period, Mr. Antonio said in the statement. Century Properties, established in 1986, is a high-end

property developer with over 40 projects in its total portfolio as of last year, according to its 2011 annual report. It debuted on the Philippine Stock Exchange last September by way of backdoor listing, replacing dormant energy firm East Asia Power Resources Corp. The company has programmed capital expenditure of approximately P7 billion this year, bulk of which may be bankrolled by borrowings, reports published last February said. As of end-2011, the developer had already completed 4,128 units in 20 condominium buildings with a total gross floor area of 548,262

square meters (sq. m.), according to its latest financial statement. This portfolio is expected to grow upon the completion of four master-planned communities in Metro Manila and Cavite that will add a combined 1.19 million sq. m. Century Properties expects to double its net income to P1.73 billion this year from P866 million in 2011. The company saw first-half net income surge 91% to P944 million from P496 million the previous year. Shares of the company ended trading last Friday at P1.47 apiece. F. J. G. de la Fuente

Court upholds Chevron action on project staff

THE COURT of Appeals has upheld treatment by Chevron Philippines, Inc. of four workers it hired for temporary jobs, while the streamlining of the firms order fulfillment system was under way, as project employees. In a 20-page decision penned by Associate Justice Angelita A. Gacutan and promulgated on Aug. 13, the court reversed a labor arbiters ruling which backed the argument of the Chevron chapter of the Philippine Labor Organization that the relief schedulers/dispatchers (SDs) involved should be treated as regular employees. The decision described the Philippine Labor Organization as the sole and exclusive bargaining representative of all regular rank-andfile employees at the oil terminal in Pandacan, Manila, the Manila Technical Laboratory, Bauan Bulk Depo and Manila Aviation Service, among others. Streamlining The case stemmed from Chevrons implementation in October 2008 of its Fuel Order Fulfillment Initiative (FOF) streamlining its system of receiving and fulfilling orders. Chevron expected full implementation of the new system to cut by 80% the number of SDs, who were in charge of scheduling, dispatching and confirming orders. As part of this plan, Chevron then promoted its existing SDs to fleet coordinators. But since FOF implementation was still under way, Chevron hired four relief SDs who were made coterminous with the new systems roll-out. The labor group, arguing that the newly hired SDs should hold regular posts since their tasks were necessary and desirable to its business, formally questioned the extension of their contracts. The labor arbiter in July 2009 ruled in favor of the union, saying the SDs were performing activities related to the usual business or trade. Chevron questioned this ruling in court, which last month sided with the company, saying the conclusion is inevitable that upon the full completion of the FOF, the position of schedulers/dispatchers shall, at that point, end or cease to exist. The appellate court noted that the position of the relief SDs being tentative subject to the completion of the FOF project means the post could only be a project employment, and therefore the relief SDs are project employees. It noted further that the extension had specific dates. Hence, the contract did state a particular date of completion of the project. A. S. O. Alegado

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The

Economy
INDUSTRY GROUPS aired concerns over some provisions of the Japan- Philippines Economic Partnership Agreement (JPEPA) with one group expressing that more export products could be explored, a statement from the Trade department over the weekend said. Representatives from the chemicals, plastics, steel and automotive industries were present in the latest technical consultations of the JPEPA held by the Trade department last Friday. Some of the concerns raised included safeguards needed for domestic industries, compliance of parties, investment opportunities, and assessment of the impact of the agreement. Other industries pointed out that the government should look into additional export products to be placed under the agreement. Plastic manufacturers cited the need to explore other product tariff lines that the industry could still explore under JPEPA. Plastics manufacturers are not limited to supplying packaging products, the Trade department said in the statement. The only plastic products that enjoy preferential tariff under the JPEPA are plastic-based packaging products. There will be two more technical consultations for the JPEPA in

Monday, September 3, 2012

US drought to affect prices

Local food sector to bear the brunt in the long run
In 2011, local feed millers imported 1.071 million MT of feed wheat, 11.33% higher than the 962,000 MT recorded in 2010. PAFMI officials were not immediately available for further comment. Should corn and wheat prices shoot up, Mr. Banayo said this could lead consumers to move towards rice, particularly in countries in which rice, corn and bread are considered major staples. If wheat and maize become terribly expensive, countries whose populations eat corn, bread and rice could start shifting more consumption towards rice, and thus drive rice prices up, he explained. A demonstration effect of high corn and wheat prices on rice is thus likely. By how much, we cannot tell. I do not expect a repeat of the 2007-2008 world food price crisis, but neither do I expect that things will be as normal as they have been since 2009, added Mr. Banayo. Political commodity In view of this, he said, the Philippines must meet its rice production targets for the year to ensure that the price of the grain remains stable. Are we prepared? That depends on the current domestic crop (starting late September until early December). If we are saved from harsh and untimely typhoons, we could muddle through. If production does not meet DA (Department of Agriculture) targets, I am, to say the least, quite worried, especially since the leadership expects self-sufficiency next year. Next year, incidentally, is an election year. The least one would want is for rice to become a political commodity, Mr. Banayo said. The Agriculture department is targeting to produce 18.46 million MT of palay this year against the 16.684 million MT recorded in 2011. LESS EFFECT Meanwhile, Rolando T. Dy, executive director of the University of Asia and the Pacifics Center for Agribusiness, had a different take on the matter. The impact on the Philippines can be contained. There is ample supply of rice in Thailand and Vietnam, the worlds top exporters. [The country] has also imported what it needs, wrote Mr. Dy in a separate e-mail. The Philippines is importing 500,000 MT of rice this year, 41.86% lower than the 860,000 MT procured in 2010.

Industry groups air concerns over JPEPA

October in the Visayas and Mindanao. The impact assessment of the JPEPA will be reported in the meetings in October. The Trade department said it will be receiving position papers from the industry sectors on the concerns raised during the meetings. NEW Prospects Meanwhile, plastic manufacturers said there are good prospects for new businesses from Japanese investors in the sector because firms are in need of raw materials from other countries like the Philippines. The prospects for business for the plastics manufacturers and packaging materials suppliers are looking up, said Vicente Co, a member of the Philippine Plastics Industry Association in the statement. The JPEPA was signed on Sept. 9, 2006 but was only approved by the Philippine Congress in December 2008. The review of the agreement is set for this year. It is supposed to be reviewed every five years. The Trade department said since the start of JPEPAs implementation, there have been increased investments from Japan. I nve st m e n t s f r o m Ja p a n reached P70.7 billion in 2009 and P58 billion in 2010. Emilia Narni J. David

By Bettina Faye V. Roc

Reporter THE ONGOING drought in the United States which has led to a rise in corn and wheat prices in the international market could have a demonstration effect on rice and food prices in the Philippines, a government official said. National Food Authority (NFA) Administrator Angelito T. Banayo said via e-mail last week that even as the country will not likely be directly affected by the US drought, the rising prices of corn, soybeans and wheat are likely to reflect on local food prices in the long run. What this immediately means for the Philippines is an increase in the price of feeds-for cattle, hogs and chicken, even fish. But principally hogs and poultry, which would drive the prices of these food items up, wrote Mr. Banayo. Corn and wheat are main ingredients of livestock feeds. The Philippine Association of Feed Millers, Inc. (PAFMI) had however said in June that it has already booked at least 1.4 million metric tons (MT) of feed wheat imports from Australia to meet its feed stock requirements for the rest of the year.

Feed costs will likely rise, he said, as the NFA chief had also pointed out. However, Mr. Dy noted that this would be more directly reflected in the prices of pork, chicken and beef from outside the country. Since rice is the main staple in Philippines, I dont expect any major price spike. Certainly, there will be an impact on imported feeds ingredients (soybean, feed wheat). This will affect feed costs for hogs and poultry. The impact on the Philippines will be higher prices of imported pork, chicken and beef. This may affect local prices and will benefit local producers, he explained. Mr. Dy added that the high price of corn in the world market could also benefit local corn farmers. Entry of imported corn will be contained. [As for exports, however,] the Philippines may not ready to export corn. We dont have the excess production, he said. Edilberto M. De Luna, Agriculture assistant secretary and National Corn Program coordinator, said last week that the department is studying the possibility of allowing commercial exports of yellow corn within the year to allow farmers to take advantage of the rising prices of the commodity in the world market.

Top government workers Criteria for RE developers eyed to get cash incentives
By Diane Claire j. Jiao
Senior Reporter OUTSTANDING government workers could get a bonus of as much as P40,000 a year under the new incentive scheme unveiled by the Department of Budget and Management (DBM). One such innovation were introducing next year is the Performance-Based Incentive System, which rewards a performance bonus for teams in the bureaucracy who meet or even surpass their outcomes and commitments... Budget Secretary Florencio B. Abad said in a statement yesterday. All government agencies, state firms and public universities and colleges submitted an annual list of performance targets major final outputs and priority programs to the department last week, he explained. At the end of the year, bonuses will be given to employees of government offices that accomplish most of these targets. Under the new scheme, a Productivity Enhancement Incentive (PEI) of P5,000 will be given to all government employees across the board. Departments that achieve at least 90% of their major final outputs and priority program targets will qualify for the Performance-Based Incentive System on top of the PEI. Secretaries of qualified departments will then rank their agencies and bureaus: the bottom 15% will be considered poor, the next 50% will be good, the next 25% will be better and the top 10% will be best. Similarly, the heads of these agencies and bureaus will rank their personnel: the bottom 65% will be categorized as good, the next 25% will be better and the top 10% will be best. For those in the best agencies and bureaus, the best performers will get P35,000, while the better ones get P20,000 and the good, P10,000. In the better offices, personnel can get P7,000, P13,500 or P25,000 depending on their performance. Lastly, the good agencies and bureaus can reward P5,000, P10,000 or P15,000 to their employees. The offices that get a poor rating or do not achieve at least 90% of their performance benchmarks will not get the additional bonuses. The new scheme will be implemented beginning this year, with the perks sourced from the Miscellaneous Personnel Benefits Fund. THE ENERGY department will conduct a stakeholders meeting to come out with a stringent eligibility criteria for a level-playing field for renewable energy (RE) developers in availing of the feedin tariff (FIT). Were working on a procedure of eligibility criteria for FIT rate availment (sic). This week, were planning to have a stakeholders meeting, Energy Department Assistant Director for Renewable Energy Management Bureau (REMB) Atty. Marissa P. Cerezo said in an interview last week. However, the department failed to meet its September target to come out with the eligibility criteria. The procedure is still not in place. Were trying to have it in place the soonest, Ms. Cerezo said. She noted that they are working on a strict set of standards for RE developers to determine who is all set for commercial development. Last month, Energy Undersecretary Jose M. Layug, Jr. said they need to finish the eligibility criteria within August to receive applications for declaration of commercial interest from prospective firms by September. What is critical, in our opinion, is who will really be ready for commercial development. They have to commit it. Thats very critical. We have to make clear criteria in determining which one is really ready, and rule out those who only claim they are ready, Ms. Cerezo explained. We need to have a strong basis that they are prepared with their technical performance, the availability of permits they have secured, and the total accomplishments, she added. Ms. Cerezo said there are developers that are declaring their intention to go on-stream as they claim to be ready for commercial development. Currently, there are developers that are saying they want to avail FIT because they said they are ready to go on-stream. They have their performance, accomplishments in their contract of pre-development stage, she said. With that, the Energy department is exploring the possibility of putting up an automatic disqualification for those developers that will not honor their word. We need to put a strict, stringent [criteria], somehow, a penalty that would discourage developers not to make any misrepresentations there. We will explore that [automatic disqualification]. They really have to commit once they say that they will go on-stream to discourage them from misrepresentation, the department official said. Once it finishes the criteria for eligibility, the Energy department

will start accepting applications for declaration of commerciality from RE developers. The ERC (Energy Regulatory Commission) issued its approved FIT rates in July. Were trying to come out with the eligibility criteria as soon as possible. We need to have the eligibility criteria in place parallel to that [the implementation of FIT rates], Ms. Cerezo said. The eligibility criteria for RE developers is one of the remaining mechanisms needed for RE pricing to fully implement the Philippine Renewable Energy Act of 2008 or Republic Act 9513. The other RE mechanisms are: net metering; renewable energy portfolio standards (RPS); and FIT Allowance (FIT-All). The ERC has slated the public consultation for the proposed net metering rules in Sept. 21 and the FIT-All in Sept. 20. The RPS is also still being finalized by the Energy department. In July 27, the ERC approved lower FIT rates for wind, biomass, hydro and solar RE sources than the proposal of the NREB. The FIT for run-ofriver hydro power has been pegged at P5.90 per kilowatt-hour (kWh), biomass at P6.63/kWh, wind at P8.53/kWh and solar at P9.68/ kWh from NREBs proposal of P6.15/kWh for hydro, P7/kWh for biomass, P10.37/kWh for wind and P17.95/kWh for solar. DOR

Miners, LGUs top list of buyers of machineries

CAGAYAN DE ORO Large-scale miners and local government units (LGUs) are the biggest market for heavy equipment and machineries in Mindanao, sources from two major distributors of such products on the island told BusinessWorld on Thursday. Gregorio B. Asugas III, account manager of Monark-CAT Philippines Northern Mindanao office, said the companys top client in recent years in the islands northern regions is Platinum Group Metals Corp. Philippines, which has a nickel project in Surigao del Norte. Monark-CAT, Mr. Asugas said, has transactions with the Platinum Group these past years involving 40 units of heavy equipment. The prices varies for each unit, he said. For one an excavator, the cost is at least P7 million and for (mining) trucks, around P18 million each, he said. Camec-JCB Corp., also a heavy equipment distributor, is, however, starting to expand its market by looking closely at the needs of local government units. Like MonarkCAT and other distributors, the company was represented during the Mindanao Cluster Conference of the League of Municipalities in the Philippines last week. Nef T. Luczon

SUITs THE C-SUITE

Karen Kaye M. Sta. Maria
Once again, the Philippines has suffered a significant blow because of the vagaries of the weather. In the aftermath of the recent torrential rains brought about by an unusually strong monsoon in the first week of August, the country is faced anew with the challenge of recovery and rebuilding. Some measure of relief is accorded to business because our Tax Code allows a tax deduction for casualty losses or losses from the destruction of business property (e.g., inventory, equipment, buildings) from an identifiable event of a sudden, unexpected or unusual nature. The BIR had previously issued specific guidelines on how casualty losses may be claimed as a deduction from income, such as Revenue Memorandum Order (RMO) No. 031-09, which was issued following the onslaught of Typhoons Ondoy and Pepeng in 2009.

How tax laws can help pick up the pieces

It must be emphasized that the casualty losses that may be claimed as a deduction from income must pertain to properties actually used in business. Thus, losses arising from the destruction of assets that are not used in the regular conduct of trade or business are not allowed as deductions. Additionally, the BIR requires that the damaged properties must have been reported in the accounting records and financial statements as part of the taxpayers assets in the year preceding the occurrence of the loss. Another limitation on the deductibility of casualty losses is that the amount of loss that may be claimed as a deduction is only to the extent of the net book value (acquisition cost less accumulated depreciation) of the property immediately preceding the casualty, reduced by the amount of insurance proceeds or other compensation received, if any. However, in case of partial destruction of property, the deductible loss is limited to the cost to restore the property back to its normal operating condition, but in no case shall the deductible amount be more than the net book value of the property immediately before the casualty. Should the restoration cost be more than the net book value of the property immediately before the casualty, the excess should be capitalized subject to depreciation over the remaining useful life of the property. Evidence of the properties damaged (e.g., photographs of the properties before and after the casualty) and their valuation (e.g., vouchers, receipts and other documents showing their acquisition cost) must be submitted to the BIR, together with the Sworn Declaration of Loss, within 45 days after the date of the occurrence of the casualty. The Sworn Declaration of Loss must state the nature of the event that gave rise to such loss and the time of its occurrence, the description and location of the damaged properties, the basis for the computation of the loss, and the amount of insurance or other compensation received or receivable. The burden of proving and substantiating the claim for deduction of casualty losses is with the taxpayer, with time being of the essence. Failure to submit the Sworn Declaration of Loss, together with the documentary requirements, within the 45-day period will result in the disallowance of the casualty losses claimed in the taxpayers income tax return. We should also bear in mind that any claim for casualty losses is not granted as a matter of course. While RMO No. 031-09 encourages BIR officers to exert every effort to assist taxpayers who wish to file a claim for casualty losses, they are also mandated to verify all documents submitted to prove such losses. Careful verification is necessary in view of the well-settled rule in taxation that deductions, being in the nature of exemptions, should be strictly construed against the taxpayer. This will be done by the BIR Large Taxpayers (LT) office or Revenue District Office (RDO) where the principal office of the taxpayer is registered, which is also where the Sworn Declaration of Loss and the supporting documents should be filed. However, in instances where the damaged properties are located outside the territorial jurisdiction of the LT Office or RDO (for example, when a taxpayers principal office is in Makati, while its manufacturing facility is located in Laguna), the BIR recently clarified in RMO No. 06-2012 that verification of the casualty loss may be conducted by the LT Office or RDO having territorial jurisdiction over the place where the properties are located, with proper coordination with the concerned LT Office or RDO. Recovery from natural disasters is a long and painstaking process. These provisions in our Tax Code, and their implementing rules and regulations, serve as a cushion that may help businessmen and entrepreneurs get back on their feet and ensure that the gears of the Philippine economy do not come to a standstill. Karen Kaye M Sta. Maria is a Tax Associate Director of SGV & Co. This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.

The
Monday, September 3, 2012

World

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Isaac brings rain to drought-hit US Midwest

Soggy mess left behind in Louisiana and Mississippi
WASHINGTON The remnants of Hurricane Isaac brought rain to drought-stricken parts of the lower US Midwest on Saturday after the storm killed at least 30 people on its trek across the Caribbean and Louisiana and Mississippi, authorities said. Rainfall totals of no more than three inches (7.6 centimeters) were expected through the lower Ohio River Valley by Saturday night after Isaac lost much of its punch while passing over Missouri. Top sustained winds had dropped to 20 miles per hour (32 kilometers per hour) and flash flood threats were diminishing, the National Weather Service said. Flood warnings were still in effect for the Kansas City, Missouri, area as well as south-central Illinois, but Dan Petersen, a forecaster at the National Weather Services Hydro-meteorological Prediction Center in College Park, Maryland, said flooding was not expected to pose much of a problem. The rain is going to be occurring in areas that are parched and have greater capacity for accepting rainfall, Petersen said. At least five deaths in Louisiana and two in neighboring Mississippi were blamed on Isaac and residents of the two states still suffered from power outages and widespread flooding on Saturday, authorities aid. President Barack Obama, who declared a disaster in Mississippi and Louisiana on Wednesday, is scheduled to visit the region on Monday. Isaac was the first hurricane to strike the United States this year and it hit New Orleans almost exactly seven years after Hurricane Katrina devastated the city, causing an estimated 1,800 deaths. More than 500,000 homes and businesses remained without electricity across Louisiana on Saturday, leaving them without air conditioning under sweltering temperatures, local government officials said. In other lingering effects from the storm, US regulators said 93% of daily oil production and 65% of national gas output in the US-regulated part of the Gulf of Mexico remained shut on Saturday due to Isaac. Producers returned only a small amount of crude oil production by Saturday, while the return of natural gas production was also proceeding solely, according to US regulators. Many producers said they continued restaffing offshore platforms and production was expected to ramp up quickly in the coming days. FLOOD PROTECTION Isaac lingered over New Orleans for the better part of two days, providing a first, successful test of the citys $14.5 billion flood-control system assembled after Katrina. Areas outside those flood protections fared worse. At least one levee was overtopped southwest of New Orleans, leaving some homes under 12 feet (3.6 meters) of water. New Orleans was struck by 20 inches (50 centimeters) of rain, and many other locations in Louisiana and Mississippi logged more than 10 inches (25 centimeters) of rain. Isaac was expected to be a mixed blessing for the droughtparched Midwest farm belt, since experts said its rains came too late for this seasons crop of corn and most soybeans. The worst drought in nearly half a century remains deeply entrenched across nearly two-thirds of the United States. Isaacs rains could help speed up pasture recovery, however, and get the US winter wheat crop off to a good start. The US Department of Agriculture is to release estimates on Tuesday of Isaacs damage to cotton and rice crops in the Mississippi Delta and lower Mississippi Valley region. Death toll Isaac killed 23 people in its passage over Hispaniola, the Caribbean island shared by the Dominican

afp

A partially submerged truck and gazebo are seen in Hurricane Isaacs flood waters with a flooded chemical plant in the background in Braithwaite, Louisiana. Louisiana residents continue to cope with the aftermath of Hurricane Isaac with ongoing flooding, destroyed property and many still without electricity.

Republic and Haiti, before barreling into the US Gulf of Mexico. On the heels of Isaac, Tropical Storm Leslie churned over the open Atlantic Ocean on Saturday, hundreds of miles east-northeast

of the Caribbeans Leeward Islands. Leslie had top sustained winds of 70 mph (112 kph). But US forecasters said it posed no immediate threat to land and

was not expected to become a hurricane before veering away from the Caribbean and heading farther out to sea in s north-northeast direction this coming Tuesday. Reuters

Obama, Romney trade job barbs in swing states

WESTMINSTER, Colorado US President Barack Obama takes his campaign to the Rocky Mountain state of Colorado Sunday as he and Republican challenger Mitt Romney fight for votes in key battleground states that will determine the outcome of the November election. The president was on a four-day trip through swing states in the lead-up to his re-nomination at the Democrats meeting in North Carolina. On Monday, he will travel to Louisiana to tour damage in the wake of Hurricane Isaac, which forced the Republican convention to start a day late. He will visit Virginia on Tuesday. Gearing up for next weeks Democratic National Convention in Charlotte, North Carolina, Obama on Saturday rallied supporters in Iowa, a Midwestern state that helped launch his successful 2008 White House campaign. He mocked this weeks Republican gathering in Tampa, Florida for promoting an outdated policy agenda from the last century heavy on conservative social policies. It was a rerun. Weve seen it before. You might as well have watched it on a black and white TV, Obama joked to supporters in Urbandale. Let me recap it for you: Everythings bad, its Obamas fault and Governor Romney is the only one who knows the secret to creating jobs and (making) the economy grow. He lambasted Romney, the former governor of Massachusetts, for failing to offer any new ideas in his address to Republican activists. Instead, Romney reiterated the same old policies that have been sticking it to the middle class for years, Obama said. They talked a lot about me. They talked a lot about him, but they didnt say much about you. Speaking in Sioux City at a later rally, the president criticized Romney for having nothing to say about Afghanistan, where US troops have been fighting the Taliban and their Al-Qaeda allies for nearly 11 years. In the meantime, campaigning in the crucial battleground state of Ohio, Romney said Obama had failed to fulfill his promise to revamp the sagging US economy, comparing his record to that of a failing sports coach. He noted that 23 million people are now out of work or have stopped looking for work or are underemployed in the United States. Let me tell you, if you have a coach thats zero to 23 million, you say its time to get a new coach, Romney said in Cincinnati, fresh from being crowned the Republican Partys official presidential candidate. Its time for America to see a winning season again, and were going to bring it to them. Responding to Obamas earlier jab, Romney spokesman Ryan Williams said the presidents policies have taken us on a road to declining incomes, higher unemployment and more uncertainty for the middle class. And in the face of a record of failure, he offered no new solutions, just misleading attacks. Stubbornly high US unemployment, which has topped 8% for 43 consecutive months, and a bumpy economic recovery are widely seen as the biggest hurdles to Obamas hopes of winning the national vote on Nov. 6. A Rasmussen Reports poll showed Romney gaining a slight bounce from his partys convention, with 47% of support from voters nationwide against 44% for Obama. The Republican contender had trailed the president by two percentage points when the convention began. On the heels of the Republican nod, Romney and his White House running mate Paul Ryan are seeking to maintain momentum as Obama and his Democratic Party ready for their convention starting Monday. The pair were due to appear for a joint rally later in Jacksonville, Florida. Ohio, along with Florida and Pennsylvania, is considered crucial to the outcome of the presidential elections. Recent polls have shown Obama leading in Ohio, a major coal producer. But Romney is not far behind and is fighting hard he has visited the state and outlined his goal to help make America more energy independent by developing natural resources. Paul Ryan and I have a plan thats going to get America working again. Its going to create about 12 million new jobs in America and about 460,000 jobs right here in Ohio, Romney said, touting his energy policy. But the focus of the political action has already shifted to the White House incumbent. Obamas top adviser David Axelrod said Friday that the president would use the Democratic convention to deliver the specifics Romneys convention speech which he said was packed with personal anecdotes and patriotic platitudes lacked. AFP

France to help Syrias rebel zones

By John Irish Reuters
NEW YORK France plans to channel aid to rebel-held parts of Syria so that these liberated zones can administer themselves and staunch an outflow of refugees, Foreign Minister Laurent Fabius said. He said France and Turkey had identified areas in the north and south that had escaped President Bashar al-Assads control, creating a chance for local communities to govern themselves without feeling they had to flee to neighboring countries. Maybe in these liberated zones Syrians who want to flee the regime will find refuge which in turn makes it less necessary to cross the border whether in Turkey, Lebanon, Jordan or Iraq, Fabius said after a UN Security Council meeting in New York on Thursday. AIR STRIKES However, civilians in rebel-held parts of Syria have suffered frequent deadly air strikes from Assads forces. It was not clear how Fabiuss promise to allocate much of its future 5 million ($6.25 million) aid for Syria to these areas would protect civilians and deter them from fleeing. What we can see is that the opposition has taken strong positions in liberated zones in the north and south, Fabius said. Those resisting who have taken control of certain zones and municipalities need to administer these areas. Credible protection for liberated areas would require no-fly zones patrolled by foreign aircraft, but there is no chance of securing a UN Security Council mandate for such action, given opposition from veto-wielding members Russia and China. Western powers have also said they will not supply weapons to lightly-armed Syrian rebels, who have few answers to attacks by Assads combat planes and helicopter gunships. SAFE ZONES After the council meeting to discuss the humanitarian crisis ravaging Syria after 17 months of conflict, Western powers said military action to secure safe zones was still an option. But they have shown little appetite for sending warplanes to Syria to protect safe havens or mount the kind of NATO bombing that helped Libyan rebels topple Muammar Gaddafi last year. Up to 300,000 Syrians have fled the country, while many more are displaced inside, humanitarian agencies say. Turkey, which has called for buffer zones to be created, now hosts more than 80,000 Syrian refugees and the UN refugee agency says the eventual figure could reach 200,000. The United Nations questioned the idea of buffer zones. Bitter experience has shown that it is rarely possible to provide effective protection and security in such areas, said UN High Commissioner for Refugees Antnio Guterres. Fabius said more help must be given to rebel-held areas. We need to help them financially, administratively, sanitarily and in terms of equipment. We are helping them directly as is Turkey, the foreign minister said. Paris and Ankara were working to identify individuals in these zones who could be part of a future Syrian authority. In the Syria of the future, these people will play an important role because they have emerged out of the conflict and they have the trust of the population, Fabius said. US programs State Department spokeswoman Victoria Nuland said earlier this week that the United States had started programs for administrators in territories outside Assads control. We have been working with them on issues of civil administration, human rights training, the kinds of things that they might need from the international community as they begin to rebuild their towns, she said. Nuland said the training involved programs outside Syria for those able to leave the country and pretty extensive contacts with those unable to leave. They are asking for help in how to budget, they are asking for help in how to keep utilities running, how to ensure that the institutions of the state that provide services to the population come back up and running, she said. The United Nations says nearly 20,000 people have been killed in Syria since the uprising against Assad began in March, 2011. Syrian opposition groups and humanitarian agencies put the death toll far higher. Reuters

Mexicos Pea Nieto Cardinal says Church is 200 years out of date confirmed as president
ROME The former archbishop of Milan and papal candidate Cardinal Carlo Maria Martini said the Catholic Church was 200 years out of date in his final interview before his death, published on Saturday. Martini, once favored by Vatican progressives to succeed Pope John Paul II and a prominent voice in the church until his death at the age of 85 on Friday, gave a scathing portrayal of a pompous and bureaucratic church failing to move with the times. Our culture has aged, our churches are big and empty and the church bureaucracy rises up, our rituals and our cassocks are pompous, Martini said in the interview published in Italian daily Corriere della Sera. The Church must admit its mistakes and begin a radical change, starting from the pope and the bishops. The pedophilia scandals oblige us to take a journey of transformation, he said in the interview. In the last decade the Church has been accused of failing to fully address a series of child abuse scandals which have undermined its status as a moral arbiter, though it has paid many millions in compensation settlements worldwide. Martini, famous for comments that the use of condoms could be acceptable in some cases, told interviewers the Church should open up to new kinds of families or risk losing its flock. A woman is abandoned by her husband and finds a new companion to look after her and her children. A second love succeeds. If this family is discriminated against, not just the mother will be cut off but also her children. In this way the Church loses the future generation, Martini said in the interview, made a fortnight before he died. Martinis final message was a call to begin a shake up of the Catholic church.The church is 200 years out of date. Why dont we rouse ourselves? Are we afraid? Reuters MEXICO CITY Mexicos electoral tribunal confirmed Enrique Pea Nieto as president-elect on Friday, but his rival refused to accept defeat and held out the possibility of further protests that could hamper reform efforts. The tribunal threw out an attempt to overturn the election result by leftist leader Andres Manuel Lopez Obrador, who had accused Pea Nieto of laundering money and buying votes in the July election. Centrist Pea Nieto, 46, will be sworn in on Dec. 1 and has pledged a raft of fiscal, labor and energy reforms, which Lopez Obrador is likely to resist. Its time to start a new chapter of responsible work for Mexico and unity, Pea Nieto said in an address at the court following the ruling. Lets work together for the reforms that Mexico needs. He said he would announce his transition team in the coming days and would set out reforms aiming to improve governmental transparency and battle corruption in the weeks ahead. Lopez Obrador, whose supporters blocked many of Mexico Citys main thoroughfares for weeks after he narrowly lost the 2006 election, rejected the judges decision. I cannot accept the tribunals ruling, which has declared the presidential election valid, he told reporters, calling for a rally in Mexico Citys main square on Sept. 9.Then we will determine what happens next. Lopez Obrador did not specify the steps he was considering but his words recalled the disruptive protests of 2006. Civil disobedience is an honorable duty when directed against the thieves of the hope and happiness of the people, the silver-haired 58-year-old said. A former mayor of Mexico City, Lopez Obrador accused Pea Nieto and his Institutional Revolutionary Party (PRI) of buying five million votes with illegal funding and plying voters with presents. Reuters

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Asian giants seek better ties

Chinas defense minister in rare visit to India
NEW DELHI A rare visit to India by Chinas defense minister should help avoid flare-ups along the border between the nucleararmed Asian giants at a time when Beijing is grappling with a change of leadership and friction in the South China Sea. But General Liang Guanglies trip the first by a Chinese defense minister in eight years also highlights growing competition between the two emerging powers as they jostle for influence and resources across Asia. Mr. Liang is due to arrive in Mumbai on Sunday afternoon after stopping in Sri Lanka, the island nation off the south coast of India that sits on vital ocean trade routes. There he sought to play down Indian fears that China is threading a string of pearls or encircling it by financing infrastructure and military strength in neighbors stretching from Pakistan to the Maldives. China attaches great importance to its relations with the South Asian nations, and commits itself to forging harmonious coexistence and mutually beneficial and win-win cooperation with them, he said in speech to Sri Lankan soldiers. The PLAs (Peoples Liberation Army) efforts in conducting friendly exchanges and cooperation with its counterparts in the South Asian nations are intended for maintaining regional security and stability and not targeted at any third party. As neighbors and emerging superpowers, India and China have a complex relationship. Trade has grown at a dizzying rate but Beijing is wary of Indias close ties to Washington and memories of a border war with China half a century ago are still fresh in New Delhi. Despite 15 rounds of high level talks to resolve the dispute about where their Himalayan border lies, neither side is close to giving up any territory. Mr. Liang is not expected to broach the territorial issue on his trip. Analysts say Mr. Liangs India tour will demonstrate that Beijing is managing the often twitchy relations with its neighbor just ahead of its once-in-a-decade leadership transition. Chinas leadership has one primary objective: how do we continue without any convulsions, said Uday Bhaskar, director of the National Maritime Foundation, a New Delhi think-tank. You do not want to have anything to do with India just now which is rocking the boat, as it were, he said. AID FOR ISLANDS In Sri Lanka, Mr. Liang pledged $12 million in military aid, adding to billions of dollars spent helping President Mahinda Rajapaksa win a 25-year-old civil war and rebuild his ruined nations ports and roads. Emphasizing Chinas growing clout in the region, President Mohammed Waheed of the Indian Ocean archipelago nation the Maldives left for Beijing on Friday to arrange $500 million in loans, partly for infrastructure. In turn, India courts close ties with Vietnam. Its exploration of an oil block in the South China Sea has needled Beijing, which claims the sovereignty over almost all of the sea and has stepped up its military presence there. Both China and India say they are committed to attaining prosperity through peaceful means. Business relations are booming and trade flows have reached an annual $75.5 billion, up from just $3 billion a decade ago. Trade is skewed in Chinas favor. During the four day trip to India, Mr. Liang will talk about border security with his counterpart Defence Minister A. K. Antony, India said this week, and they may announce a new round of joint military exercises following on from a recent joint naval practice in Shanghai. No more details have been announced, but the two sides are expected to discuss their mutual neighbors Afghanistan and Pakistan, and the security challenges they face when North Atlantic Treaty Organization forces start leaving the region in 2014. TIBET Mr. Liangs delegation includes Yang Jinshan, commander of the Tibet military district on the vast and troubled Himalayan plateau bordering India. China and India fought a brief border war in 1962, two years after India gave asylum to the Dalai Lama, who Beijing considers a separatist. The last time a Chinese defense minister visited India was in 2004. Since then, Beijing has spent billions of dollars on train lines, roads and military hardware in Tibet. India has also spent heavily to strengthen its defences along the frontier, which the two sides dispute, despite years of talks. Minor incidents of both nations troops crossing the border are common, but major flare-ups are avoided through meetings of low and mid-rank officers, as well as senior military delegations and a cabinet-level hot line. Instability has increased in Tibet in the lead up to the Chinese leadership change, with 51 Tibetans setting fire to themselves in gruesome protests against Beijings heavy-handed rule in the region. Mr. Liangs visit follows a number of high intensity unilateral military exercises by both countries in the border region in the past year. More recently, Indias ambassador to China was allowed to tour Tibet, a rare occurrence, and an Indian military delegation was taken to the regions capital Lhasa. Jayadeva Ranade, a retired Indian senior civil servant and China expert, said Chinas recent warmth toward India reflected its concerns about military escalation in the South China Sea, and perception that India is being drawn into the US pivot to Asia, which Beijing sees as containment. While he welcomed Mr. Liangs trip, Mr. Ranade said India was disappointed Chinas next president had not yet visited. Its a tepid gesture earlier they were expecting a higher level visit, Xi Jinping was expected to come. That would have been something, Mr. Ranade said. Meanwhile, a team of Japanese surveyors Sunday sailed to a group of disputed islands in the East China Sea which the nationalistic governor of Tokyo wants to buy amid a widening diplomatic row with China. Tokyo Governor Shintaro Ishihara, known for his outspoken views, dispatched the team, which arrived at the island chain claimed by both countries, known in China as Diaoyu and in Japan as Senkaku. Reuters and AFP

Ethiopians mourn at leaders funeral

ADDIS ABABA Tens of thousands of Ethiopians mourned on Sunday the late strongman Meles Zenawi, in the first state funeral staged for a leader of the Horn of Africa nation in more than 80 years. Followed by giant crowds, Mr. Meles flag-draped coffin slowly processed through the capital from the National Palace to the vast Meskel Square, his family dressed in black following behind, many in tears. The coffin arrived on top of a horse-drawn carriage adorned with white flowers and pictures of Mr. Meles who died last month aged 57 as a boy and young man, before the casket was placed on a stage above the giant crowd. Religious leaders from Ethiopias Christian Orthodox Church, dressed in flowing embroidered robes and carrying red and gold velvet umbrellas, held prayers for the sea of mourners. Ethiopias Deputy Prime Minister Hailemariam Desalegn, who will lead government until national elections in 2015, sat right behind the coffin, and welcomed the many African leaders and foreign dignitaries who are attending. The late prime minister was working not only for the renaissance of Ethiopia, but also for the renaissance for all of Africa, Mr. Hailemariam said in a speech after prayers. All his initiatives will keep going forward, all the transformation plans will progress, he promised. Presidents of all Ethiopias neighbors with the exception of arch-foe Eritrea are attending, including Djiboutis Ismail Omar Guelleh, Kenyas Mwai Kibaki, South Sudans Salva Kiir, Sudans Omar al-Bashir, and Somalias Sheikh Sharif Sheikh Ahmed. Benins President and current Africa Union Chairman Thomas Boni Yayi, Paul Kagame of Rwanda, Jakaya Kikwete of Tanzania and Goodluck Jonathan of Nigeria are also present. Senior officials from China, the European Union and the United States were also expected. Thousands of soldiers stood guard as the ceremony progressed, some of them crying. The funeral ceremony will later move to the capitals Holy Trinity Cathedral, where Mr. Meles will be buried. Mr. Meles died in a Brussels hospital on Aug. 20 after a protracted illness. He had not been seen in public for two months, spurring rumors about his health. The former rebel turned regional strongman took power in 1991 after toppling dictator Mengistu Hailemariam, remaining at the helm of Ethiopia a relatively stable country in the volatile Horn of Africa region until his death. But while he was credited with bringing about widespread economic growth, rights groups criticized him for what they said was a crackdown on opposition groups and journalists. His successor Mr. Hailemariam will be sworn in after Mr. Meles is buried, although no date has been fixed. He is a relatively unknown politician who hails from the south, unlike many of the countrys political elite who are from the north. While Ethiopia has hosted a series of state funerals in recent decades including that of popular musician Tilahun Gessesse in 2009 the last leader to be so honoured was Empress Zawditu in 1930. Ethiopias last emperor Haile Selassie, who was murdered in 1975 by coup leaders, is also buried at Holy Trinity Cathedral. AFP

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Concerns cited in Negros mines

BACOLOD CITY Unregulated small-scale gold mining operations in two towns in Negros Occidental have raised concerns among agencies after miners involved refused to heed the cease and desist order (CDO) issued by the Mines and Geosciences Bureau (MGB)-Region 6. MGB-6 Director Leo Van Juguan said the government is looking for a win-win solution to the illegal gold mining activities in Hinobaan town and Sipalay City. Our hands are not really that tied. Were trying to come up with an appropriate [solution], he said in an interview. The MGB-6 had issued a CDO to the more than 100 families involved in mining operations after an area assessment indicated the geologic hazards and environmental impact of mining in the area. We had some problems implementing the order. They refused to receive the CDO, Mr. Juguan said. He said the MGB-6 can take a hard stance and file a case against the miners for ignoring the CDO, but the issue also involves the livelihood of hundreds of people. I have asked the (MGB) central office. I laid down the situation before them. I asked what would be best. We are asking them for further advice, he added. Mr. Juguan said the area of more than 50 hectares between Hinobaan and Sipalay, where these small-scale mining operations take place, is covered by the mining claim of Philex Gold Philippines, Inc., which is conducting exploration activities in the area. I have written them [Philex Gold] a letter telling them to give to me actions to be taken, he said. The Provincial Environment Management Office (PEMO) had raised concerns on the illegal gold mining activities as the miners use toxic chemicals for gold extraction. They dump the hazardous waste into a creek that flows towards Bacuyangan River in Hinobaan. Eriberto Madalag, officerin-charge of PEMO Regulatory Services Division, earlier said the inadequate skills of small-scale miners in utilizing toxic chemicals poses dangers to their health and to the environment. The miners can process 10 to 20 grams of gold in a single operation, and each gram can be sold at 1,700, he said. Mr. Juguan cited risks if safety rules are not followed. We will ensure it will not become a Compostela Valley, referring to the landslides that killed scores in that provinces Pantukan town, known for small-scale gold miners. Nanette L. Guadalquiver

Law eases changes to register of birth

ADMINISTRATIVE CORRECTIONS in the register of birth has been eased under a new law signed by President Benigno S. C. Aquino III. Republic Act (RA) No. 10172 in particular expedites the correction process by authorizing the city or municipal civil registrar or the consul general to correct clerical and typographical errors in the first name or nickname, dates of birth, or sex of a person in the civil register without need of judicial order. Under Republic Act 9048, or the Clerical Law, corrections in the register of birth and certificate of marriage require the proper petition in a judicial court. The process takes more than six months. Instead of the tedious court proceedings, requesting parties are now required to file an affidavit and submit a certified true machine copy of the certificate containing the entries sought to be corrected; at least two documents showing the correct entries; and other relevant documents. Earliest school documents such as medical records, baptismal certificates, among others, are required for correction on entries concerning the date of birth or the sex of a person. Changes on the sex, meanwhile, can be carried out only if the requesting party presents a certification issued by a physician stating that the petitioner has not undergone gender reassignment. The measure notes that corrections will be made only on typographical errors, which refer to a mistake committed in the performance of clerical work in writing, copying, transcribing or typing an entry in the civil register that is harmless and innocuous. Signed on Aug. 15, RA 10172 requires that a petition for correction of an erroneous entry or typographical error concerning the date of birth or sex requires publication at least once a week for two consecutive weeks in a newspaper of general circulation. The new law will take effect 15 days after its publication in the Official Gazette or in at least two newspapers of general circulation. Noemi M. Gonzales

Gender issues integrated in disaster mitigation

CAGAYAN DE ORO Gender issues have been integrated in the disaster-mitigation programs of the Department of Social Welfare and Development (DSWD). This developed after 94 workers in various regions under the states cash subsidy scheme for the poor completed on Saturday a training on mainstreaming gender in disaster risk management. The training is responsive to the policy and practical guidelines drafted by the international community on how to mainstream gender in disaster risk management for national governments, said Araceli F. Solamillo, DSWDRegion 10 director. Primitivo T. Rufin, head of the institutional development division of DSWD-10, said the training raised the skills and capabilities of participants and ability to select and use gender analysis and participatory tools, methods and processes in risk assessment and management planning. Northern Mindanaos progress on the subsidy program or Pantawid Pamilyang Pilipino Program, meanwhile, has been cited for its success in coordinating with civil society. Charmaine P. Tadlas, DSWD information officer, said the regional office has even exceeded its target through coordination with nongovernmental partners. The updating aims to monitor compliance of beneficiaries to school attendance and regular health center visits for children aged 14 and below, and proper maternal health. NTL

Hospital rental, lease deals raised

A STATE-RUN hospital has been questioned for entering into several rent contracts while leasing spaces that are not backed by agreements. According to the 2011 report of the Commission on Audit (CoA) on the Philippine Heart Center (PHC), it was noted that the institution has entered into 15 rent contracts with private firms last year without public bidding and leased spaces to 65 others without the benefit of a contract. Lessees include a fastfood and bakery chains while two are banks. Under the Government Accounting and Auditing Manual, Except for the rental of market stalls and spaces, no such contracts shall be awarded for the first time or renewed and entered into without the required public bidding. The PHC has also allowed several firms, many of which are pharmaceutical companies, to lease spaces without contracts. The contract of lease shall be embodied in a public instrument and shall integrate all the covenants, understanding and agreements of the lessor and the lessee, the report states. Monthly rental rates for the 65 firms were issued under a hospital memorandum, but the computations on the rates were not clear. [T]he concerned accounting personnel disclosed that they did not have any document showing how the amount was arrived at, the PHC management told the CoA. The CoA stated that the absence of the contracts may put the PHC on the losing end in case of conflict or default by a lessee. [T]he rights and obligations of both parties were not clearly defined in the absence of lease contracts. This may result in future disputes and circumstances that may be unfavorable to PHC. In the event of defaults or other actions of lessees that are disadvantageous to PHC, it has no legal documents to lean on, the commission said. The management said it did not know that leasing should undergo public bidding, but ensured the audit body that it bargained for the best price. It is only now that their attention was called that spaces for lease should be subjected to the public bidding, the report stated. They negotiated the best price for the Center considering everything such as the cost and construction and the prevailing market price within the vicinity. The PHC said lease contracts have been issued this year to lessees. The CoA, however, said that some lessees still do not have contracts and insisted that lease agreements be covered by contracts to protect its (PHC) interest. Monica Joy O. Cantilero

rlae

AN ALLEY in a temporary relocation site for victims of tropical storm Sendong.

Storm victims waiting to restore lives

CAGAYAN DE ORO More than eight months after the onslaught of tropical storm Sendong (international name: Washi), families living in tent communities and other temporary shelters still long for permanent homes to regain a normal life. Right now, were unsure until when well stay here although some of us are now living in houses built by the government, said Juan, a flash flood survivor who explained the situation in the vernacular but declined to have his full name mentioned in this report. In an interview in July, Cagayan de Oro City Mayor Vicente Y. Emano said families displaced by Sendong would be transferred to permanent houses by last month. But only a small fraction of the number needing permanent shelter have been transferred to newly constructed houses as of end of August, city data showed. While Mr. Emano was unavailable to immediately comment on this issue, Nene A. Padla, officerin-charge of the estate management division of the City Planning and Development Office, said 2,125 permanent housing units have been awarded to the victims. The official number of families living in permanent houses as of Aug. 29, however, was only 828, said Anecia C. Tongson, a social worker from the City Social Welfare and Development office who was assigned to supervise permanent relocation sites. While the actual number of families left homeless by floods from rains brought by the storm in December 2011 was much higher than 2,000, many decided to reestablish their lives on their own with minor help from the government and civil society groups. Those still holed up in temporary shelters more than six months after Sendong are families left with almost nothing. Ms. Padla noted that even if many beneficiary families have not yet been transferred to permanent houses, they can be assured of ownership of the units which have been awarded in their name. The houses are already standing but some lack furnishings, she said. Some of the windows and doorknobs were stolen and need replacement, she said in citing a reason on the inability of over a thousand families to move in immediately. An action review report of the United Nations Office for the Coordination of Humanitarian Affairs conducted in March has observed that while the city government has identified its partners in building houses like Gawad Kalinga and the Habitat for Humanity Foundation, there are delays and unrealistic expectations in the delivery of housing units. The same report observed fraudulent claims of damage from some families just for them to receive shelter benefits. Ms. Padla acknowledged the problem and said this causes delays in the transfer of families. To draw up a list of the real victims whose houses were totally washed out by the flash floods, the official said the local government has been coordinating with other agencies and nongovernmental organizations. Mr. Emano earlier said the transfer of families would be completed by the end of August, or until the first week of September. Some of the victims in the tent cities, however, noted that the transfer was to other temporary shelters, not to permanent houses. Going to another temporary shelter would mean another adjustment for us and for our children who are now in school, said Anna, another temporary shelter resident. Alberto R. Torres who lives in a bunkhouse in Calaanan, a temporary shelter community, was digging soil to build a drainage system. When it rains, the water would seep into our house and that made us uncomfortable and even scared, he said in the local dialect. We do not even have enough water as supply comes only every Tuesday and Thursday. We are still unsure until when we are going to stay here, I think we just have to wait, he added. The city government, meanwhile, is addressing the problem, Ms. Padla said. We are following the universal standard on IDP (internally displaced persons) emergency housing, she noted in response to the complaints. The tents are not suitable for a longer stay so we need to transfer them to transitional shelters for them to be more comfortable and at least they could sleep well while still waiting for their permanent houses, she added. Rochie Lou A. Embodo

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said Rey M. Gozon, Office of Civil Defense (OCD) regional director. Among those damaged in Eastern Samar were the Layug Bridge in San Julian; San Pedro Bridge in Quinapondan; Sulat Bridge and some road sections in Sulat; approaches and pier of Buyayawon Bridge in Mercedes; and deck slab of San Eduardo Bridge in Oras, Eastern Samar. Cracks were also observed in the barangay hall of Brgy. San Isidro in Hernani, Eastern Samar. The San Pedro Bridge, which tilted after the quake, was still not passable as of Saturday, with a detour constructed by the Department of Public Works and Highways. The Buyayawon and Layug bridges, meanwhile, were declared passable by Saturday morning. In Northern Samar, the Caglankay and Maroyondoyon bridges linking Calbayog City and Catarman sustained cracks on piles and girders. Narrow cracks in the San Isidro Ferry Terminal and damage to sea walls were also reported. In Tacloban City, the OCD reported that a waiting shed of Kapangian Central School fell while a fracture was noted on the firewall of Hotel Alejando. Minor wall cracks at the Tacloban City Hospital were also observed. In General MacArthur, Eastern Samar, 74 houses were damaged while 24 collapsed, according to the Department of the Interior and Local Government (DILG), in its report to the OCD. More than 7,000 people from 30 villages in Guiuan had fled their homes and ran towards the area near Felipe Abrigo Memorial Hospital and in Barangay Cogon, the highest point in Guiuan, said Mayor Annaliza G. Kwan. Residents of the islands of Sulangan, Calicoan, Homonhon, Suluan, Manicani, Tubabao and Victory were prepared and had anticipated a tsunami because of increased awareness, active coordination by authorities and advanced technology, she added. The Philippine Institute of Volcanology and Seismology (Phivolcs) had issued a Tsunami Alert Level 3 warning in the threatened coastal areas in the provinces of Eastern Samar, Leyte, Southern Leyte, Dinagat Islands and Surigao del Norte. The alert was lifted at 12:10 a.m. Saturday, but the people chose to stay in evacuation centers until morning for fear of strong aftershocks. Around 20,000 people from Borongan, the capital of Eastern Samar, and neighboring towns had also fled their homes and flocked to the provincial capitol shortly after the quake, said Eastern Samar Governor Conrado B. Nicart, Jr. I think that was the strongest quake that hit Eastern Samar. Its totally dark here due to brownout but we are doing our best to provide for the needs of evacuees, Mr. Nicart said in a radio interview on Friday night. In Tacloban City, thousands of residents fled to the city hall compound after the lights went out. The evacuation had been spontaneous and properly executed since many earthquake drills had been made before in anticipation of exactly such an event, OCDs Mr. Gozon said. Nemesio M. Caete, Jr. senior science research specialist at Phivolcs-Region 8 in Palo, Leyte, said several mild aftershocks were recorded until Saturday afternoon. More than 150 aftershocks were recorded in the first few hours after the quake. Aftershocks may last for weeks but we advise the public not to panic, he said. Despite the quake and aftershocks, Ms. Kwan noted the continued arrival of pilgrims and tourists in Sulangan, a pilgrimage island south of Guiuan town. Sarwell Q. Meniano and Reyan L. Arinto

EDITOR CRIS V. PARASO Monday, September 3, 2012

1 dead, P12M in damage from earthquake

TACLOBAN CITY One person died while 12 million worth of infrastructure was damaged from a strong earthquake off Eastern Visayas at the weekend, disaster management officials said. The loan fatality was from a landslide in Cagayan de Oro City, which experienced Intensity 3, according to a 6:00 a.m. report of the National Disaster Risk Reduction and Management Council (NDRRMC). The magnitude 7.6 tremor, said the NDRRMC, was felt the strongest at Intensity 6 in six towns in Eastern Visayas (Guiuan, Oras, Sulat, Borongan City, Gen. Macarthur and Llorente) at 8:47 p.m. on Friday. The same intensity was recorded in Tacloban City, Leyte. Damage was listed for roads, bridges, schoolbuildings, houses and other structures as the epicenter was recorded at over 100 kilometers off the coast of Guiuan town in Eastern Samar. Power was cut off in Guiuan when a 69-kilovolt transmission line tripped shortly after the quake. Power was restored yesterday. A number of buildings in Tacloban City and Palo, including schoolbuildings, were closed on Saturday after preliminary inspections found evidence suggesting they might have been damaged,

Families rebuild amid further tremor fears

GENERAL MACARTHUR, Eastern Samar Families returned to their quake-devastated homes in the Visayas yesterday, ignoring government warnings to relocate away from danger zones. Men, women and children picked through the debris in the quiet fishing town of General MacArthur looking for materials to salvage from their splintered wooden houses. The area faces the Pacific Ocean on the countrys eastern seaboard, where a 7.6-magnitude offshore quake struck Friday, triggering a tsunami alert that forced over 130,000 people to flee. We thank the Lord that no big waves came, but still, the earthquake destroyed our home, said Rosel Aruera, a 20-year-old mother of two, as she surveyed the remains of her home. It was so strong we were thrown off our bed and minutes later our floor and walls crumbled. Hers was among 80 seaside homes built on stilts using cement and wood, common structures in many coastal areas across the Philippines. We have nowhere else to go, that is why we are trying to rebuild here, she said. Village chief Amador Evallo said the local government had repeatedly warned people to relocate to safer areas inland. All of their houses have been destroyed, and now they are trying to rebuild on the same spot. But what happens when another earthquake or tsunami comes? he said. That would be a nightmare. The quake also sparked tsunami warnings as far away as Indonesia, Japan and Papua New Guinea. Defense Undersecretary Benito T. Ramos, National Disaster Risk Reduction and Management Council executive director, said the quake served as another reminder for many local governments to improve disaster preparedness and relocate entire villages away from danger zones. We are lucky this time. But we cant count on luck all the time, he said. We also understand that politically it is easier to say they will relocate communities, but it is more difficult to implement. Heavily populated urban areas in the main island of Luzon, including the capital Manila, sit on or are near at least four fault systems. The most active of these, the Valley Fault System, cuts through the eastern section of the island, including across Manila and suburban areas to the south. That fault moves once every 200 to 400 years, the last time in the 17 th century, seismologists said. Mr. Ramos said a 2004 study jointly carried out with Japan said a movement of the Valley Fault System could trigger a 7.2-magnitude quake, flattening 40% of all buildings in Manila, a city of 15 million. Tens of thousands would also die, he said. Friday s earthquake off the coast is reminding us that these faults could move any time, Mr. Ramos said. AFP

Wooden fishing boats are placed on stilts due to fishermen temporarily stopping fishing after a 7.6-magnitude earthquake hit the province with local authorities declaring a tsunami alert earlier in the night in the coastal town of Guiuan, Eastern Samar. Photo taken on Sept. 1.

afp

More Pinoy registrants abroad in preparation for 2013 polls

THERE ARE more Filipinos working and living abroad who have registered for next years midterm polls compared to the previous elections, the Department of Foreign Affairs said yesterday. In a statement, the agency said new registrants in the ongoing listing of overseas absentee voters (OAV) totaled 249,391 as of Aug. 31, surpassing the 235,950 voters who registered for the 2010 general polls. The new registrants bring the total number of OAVs to 839,221. State advertising and marketing efforts, particularly on the Internet, were attributed to the higher number of registrants. Top three search engines such as Google, Bing and Yahoo show sites with OAV ads on the first three pages, indicating that OAV ads are creating traffic over the Internet, the statement said. Electronic posters and banner ads were widely disseminated to embassies, consulates, the Manila Economic and Cultural Offices (Taiwan), and partner agencies, and were also uploaded in their official Web sites and social networking sites, it added. Foreign Affairs Secretary Albert F. del Rosario was also said to have written to around 4,000 leaders of Filipino associations and organizations around the world to solicit support in registering their members in order to ensure outmost participation in the 2013 electoral process by Filipinos overseas. Filipinos abroad are allowed to vote under Republic Act 9189 or the Overseas Absentee Voting Act of 2003. A. S. O. Alegado

Palace lists holidays for 2013

THE SCHEDULE of holidays next year was released Saturday by Malacaang as approved by President Benigno S. C. Aquino III. Proclamation 495, signed on Aug. 16 and effective immediately, declares the following as regular holidays: New Years Day (Jan. 1, Tuesday), Maundy Thursday (March 28), Good Friday (March 29), Araw ng Kagitingan (April 9, Tuesday), Labor Day (May 1, Wednesday), Independence Day (June 12, Wednesday), National Heroes Day (Aug. 26, also the last Monday of August), Bonifacio Day (Nov. 30, Saturday), Christmas Day (Dec. 25, Wednesday) and Rizal Day (Dec. 30, Monday). The following days, meanwhile, are special (non-working) days: Black Saturday (March 30), Ninoy Aquino Day (Aug. 21, Wednesday), All Saints Day (Nov. 1, Friday). Chinese New Year, which was declared a holiday this year, was not included in the list as it falls on a Sunday, Deputy Presidential Spokesman Abigail F. Valte said in an interview over state-run dzRB. By tradition, other special holidays include Nov. 2 (Saturday), Dec. 24 (Tuesday) and Dec. 31 (Tuesday). These days precede special nonworking holidays. In addition, all schools will also enjoy the EDSA revolution anniversary on Feb. 25 (Monday) as a special holiday. Dates proclaiming national holidays for the observance of Muslim events, Eidl Fitr and Eidul Adha, shall be determined in accordance with the Islamic calendar (Hijra) or the lunar calendar, or upon Islamic calculations.

37 injured in southern attack

DAVAO A grenade attack at a packed circus show injured at least 37 people in the South, police said yesterday. The blast in Davao City was apparently meant to strike an army camp but the grenade bounced off netting and landed inside an adjacent basketball gym where a circus was being held late Saturday, police said. It bounced when it hit a net barrier of the camp and exploded inside the gymnasium, local police chief Supt. Ronald dela Rosa said. At least 37 people were hurt but none of the injuries were life-threatening, he said. It was not yet known who carried out the attack and why, but communist and Muslim insurgents are known to operate in the area and have been blamed for similar incidents in the past. AFP

S2/1-12
Monday, September 3, 2012 VOL XXVI ISSUE 27 ISSN0116-3930

EDITOR JUDY T. GULANE

Stock Market WORLD MARKETS WORLD BUSINESS BULLETINS WORLD SPORTS ARTS & LEISURE

Slide in T-bill rates expected

Rates of Treasury bills are expected to fall at the auction today amid ample liquidity in the system and bullishness among investors after the government reported continued high economic growth in the second quarter. Bond traders interviewed last Friday said the 91-day, six-month and one-year T-bills may fetch rates lower by five to 10 basis points compared to the rates they fetched at the Aug. 22 auction. At that auction, the 91-day papers got 1.452%; six-month papers, 1.671%; and the one-year papers, 2.125%. At the secondary market last Friday, the three-month papers fetched 1.375%; the six-month T-bills, 1.675%; and the one-year securities, 2.1%. Rates of the Treasury bills are expected to decline by five to 10 basis points across all tenors [today], a trader said in a phone interview. This is amid the high liquidity in the financial system and as investors remain confident in the countrys assets due to our strong macroeconomic fundamentals, as demonstrated by the countrys GDP (gross domestic product) growth for the second quarter and average growth for the first half, he added. The local economy expanded by 5.9% in the second quarter. Although lower than the revised 6.3% expansion in the first quarter, it was higher than the markets expectation of 5.7%. The second quarter growth brought the first half average to 6.1%, slightly higher than the governments 5-6% target for the year. In a separate phone interview, T-bill, S2/ 4

Share sale to current stockholders mulled

Sterling Bank of Asia is mulling the sale of additional shares to current shareholders as it prepares for a P500-million capitalraising exercise. The P500 million to be raised from the Tier 1 capital-raising activity will be sourced from existing shareholders, said Sterling Bank President and Chief Executive Officer Lamberto R. Villena in a phone interview last Friday. We do not want to dilute the stakes of existing stockholders at the moment. Sterling Bank is majorityowned by the JTKC Group of Companies of the Tiu family and Star Equities, Inc. Surewell Equities, Inc. holds a 30% stake. The bank wants to raise fresh Sterling, S2/ 3

YIELD TRACKER

Govt debts sustain rally

By Daniel Anne N. Rodriguez
Senior Researcher Government debt papers extended their rally last week amid ample liquidity in the financial system and market expectation of another interest rate cut. Debt yields in the secondary market slid almost across the board from month-ago levels, retreating by 9.30 basis points (bps) on the average, data from the Philippine Dealing and Exchange Corp. (PDEx) showed. The benchmark 91-day Treasury-bill (Tbill) led the rally, fetching 1.3750% last Friday, 46.50 bps lower than last months 1.8400%. Yields on other short-tenored debt papers also plunged, with the 182-day and one-year T-bills fetching 1.6750% and 2.1000%, down respectively by 42.50 bps and 18.92 bps. Bonds at the belly and tail-end of the curve also gave lower yields except for the three-year and 20-year papers. The three-year and 20-year T-bonds respectively yielded 3.7250% and 5.6744%, up by 21.50 bps and 11.51 bps from last months 3.5100% and 5.5593%. Yield, S2/ 3

High noon at ECB over bond buying plans

FRANKFURT Tempers may well fray at the European Central Banks (ECB) policy meeting this week as president Mario Draghi seeks to head off German-led resistance to the banks anti-crisis armory. As financial markets look to the ECB to come to the euro zones rescue yet again in the seemingly never-ending debt crisis, the meeting could see a face-off between Mr. Draghi and the head of Germanys Bundesbank, Jens Weidmann. The German central bank chief has made no bones about his opposition to a bond-buying program aimed at helping the most debtwracked member states. And newspaper reports have even suggested that Mr. Weidmann has repeatedly threatened to resign over the issue, as did his predecessor Axel Weber and the ECBs former German chief economist Juergen Stark. Expectations are indeed running high for the ECB governing councils regular monthly meeting on Thursday. At last months meeting, Mr. Draghi had said the central bank may resume bond purchases, albeit under strict conditions that are still in the process of being worked out. But markets may be disappointed if they bet on Mr. Draghi revealing the details or resuming the bond buying this week, analysts warned. Despite the high expectations in the markets, the ECB is likely only to present an interim report on the bond purchase program at the council meeting to be held on Thursday, said Commerzbank economist Michael Schubert. Capital Economics economist Jennifer McKeown agreed. We expect the ECB to disappoint markets this week with its plans for peripheral government bond purchases. President Draghi is likely to state that such purchases will be limited and that they will not begin until after the EFSF or ESM have bought bonds themselves, she said, referring to the euro zones two rescue funds. The ECB initially launched its bond-buying blitz under the Securities Market Program (SMP) in 2010 to help debt-wracked euro zone countries that were finding it difficult to drum up financing in capital markets. It has since accumulated 208.5 billion ECB, S2/ 3

2/S2
PHILIPPINE INDEX CHARTS
Financial: 1,290.03
1350

EDITOR JUDY T. GULANE Monday, September 3, 2012

FRIDAY, AUGUST 31, 2012

All Shares: 3,448.27

3545

PSEi: 5,196.19
5385

PSEi seen sustaining uptrend

Stocks are expected to sustain their uptrend this week as the Ghost Month ends and the market readies for the fourth quarter, which usually provides a boost to share prices, as well as positive investor sentiment after the Fed last week reiterated a plan to deliver another stimulus to the US economy. The Philippine Stock Exchange index (PSEi) rose by 1.03% to 5,196.19 last Friday from 5,143.35 the week before, while the broader all-share index gained 0.55% to 3,448.27 versus 3,429.29. The market landed on positive soil during the four-day trading week, thanks to [the] late-week bargain hunting of oversold shares, said Freya B. Natividad, analyst at online brokerage 2TradeAsia.com, in an e-mail last Friday. Week on week, the PSEi moved up 52.8 points after the government reported a positive GDP (gross domestic product) result, said investment management firm BPI Asset Management, Inc. in a market report last Friday. The government reported last Thursday the Philippine economy grew by 5.9% in the second quarter. In addition to the positive secondquarter economic data, the market was also buoyed by anticipation over Fed Chairman Ben Bernankes speech slated last Friday, said brokerage AB Capital Securities, Inc. in a separate market report last Friday. Mr. Bernanke said the Fed was ready to provide another stimulus to boost sagging US growth a stance that investors cheered, pushing US indices higher last Friday. This week, the PSEi is seen edging higher, mirroring US markets reaction to Mr. Bernankes speech. For the next few days, we will be benefitting from the Feds recent announcement, said Astro C. del Castillo, managing director at First Grade Finance, Inc., in a telephone interview yesterday. The local market may rally because generally, markets like more quantitative easing because it would mean more liquidity, said Joseph Y. Roxas, president at brokerage Eagle Equities, Inc., in a separate telephone interview, referring to the Feds bond-buying program. Moreover, the end of the Hungry Ghost Month celebrated by the Chinese in August, which coincides with the vacation period of traders abroad is expected to usher in more activity in the local bourse. We just entered the ber months... This is already a good time to start putting more weight in the local market, regardless of the overall outcome of Bernankes speech, said Bede Lovell S. Gomez, assistant vice-president and investment advisory group deputy head at First Metro Investment Corp., in a text message yesterday. The market may also be driven by the US presidential election season, which will pit the Democrat Barack Obama and Republican Mitt Romney in a nearly three-month campaign until Election Day in November. Important economic insights from the political aspirants could cheer or dismay the US market, which in turn is a primary lead for the Asian region, AB Capital noted. Sectors that may be in play this week will include financial and property, said Elizabeth S. Abadillo, analyst at brokerage Angping & Associates Securities, Inc., in a text message yesterday. August inflation data, to be released on Wednesday, will also be watched by investors, AB Capital said. US economic indicators that may impact local trading are the Institute of Supply Managements manufacturing index (Tuesday), unemployment benefits claims (Thursday), and employment situation (Friday), BPI Asset said. Ms. Natividad pegged initial PSEi support and resistance levels this week at 5,100 to 5,150, and 5,250 to 5,300, respectively. Franz Jonathan G. de la Fuente

1308

3470

5250

1266

3395

5115

1224

3320

4980

1182

3245

4845

1140

2.82
M A M J J A

3170

15.98
M A M J J A

4710

46.88
M A M J J A

Industrial: 7,904.24
8050

Property: 1,989.01
2080

Mining & Oil: 20,960.73

27400

7880

2000

25840

7710

1920

24280

7540

1840

22720

7370

1760

21160

7200

70.60
1680

13.76
M A M J J A

19600

41.87
M A M J J A

A M

PSE Turnover and Averages

SHARES VALUE (P) AVERAGES FINANCIAL 26,789,835 2,111,904,038.05 FINANCIAL 1,290.03 up 2.82 INDUSTRIAL 201,443,484 1,657,396,445.13 INDUSTRIAL 7,904.24 up 70.60 124,250,856 1,776,249,050.08 HOLDINGS 4,333.35 up 24.25 HOLDINGS 213,239,752 785,449,855.80 PROPERTY 1,989.01 up 13.76 PROPERTY SERVICE 454,132,645 841,973,402.57 SERVICE 1,761.55 up 23.97 1,040,023,674 186,932,328.03 MINING & OIL 20,960.73 up 41.87 MINING & OIL GRAND TOTAL 2,059,880,246 7,359,905,119.66 ALL SHARES 3,448.27 up 15.98 Advances 88 Declines 71 Unchanged 39 PSEi 5,196.19 up 46.88 OPEN HIGH LOW Financial 1,287.21 1,290.03 1,275.21 Industrial 7,833.64 7,904.24 7,811.05 ODD LOTS VOLUME : Holding Firms 4,309.34 4,333.35 4,282.83 ODD LOTS VALUE : 1,979.00 1,989.01 1,958.01 Property Services 1,737.38 1,761.55 1,734.86 Mining & Oil 20,945.04 20,960.73 20,708.88 TOTAL FOREIGN BUYING : 3,432.49 3,448.27 3,411.69 TOTAL FOREIGN SELLING: All Shares PSEi 5,149.34 5,196.19 5,125.54

329,096 111,731.77

3,667,126,562.04 5,506,382,022.47
52Wk 52Wk MktCap Stock Stocks High Low (Pmil) Code

PHILIPPINE STOCK EXCHANGE

Volume Open High Low Close Prev Close Net Foreign Trade(peso) Buy(sell) 52Wk 52Wk MktCap Stock Stocks High Low (Pmil) Code Volume Open High Low

FRIDAY, AUGUST 31, 2012 Provided by: Technistock

Top 10 in Volume
Stocks Volume Abra Mining and Industrial Corp. 30,000,000 6 339,100,000 Boulevard Holdings, Inc. 151,600,000 Greenergy Holdings, Inc. United Paragon Mining Corp. 142,100,000 Megaworld Corp. 108,177,000 91,000,000 IP E-Game Ventures, Inc. 90,830,000 Manila Mining Corp. A 78,000,000 The Philodrill Corp. Oriental Pet. and Minerals Corp. A 43,600,000 Abacus Cons. Res. and Hldgs., Inc. 34,831,000

Top 10 in Value
Stocks MetroBank and Trust Co. Manila Electric Co. Alliance Global Group, Inc. SM Investments Corp. Phil. Long Distance Tel. Co. Ayala Corp. Ayala Land, Inc. Megaworld Corp. Security Bank Corp. Banco de Oro Unibank, Inc. Value 1,472,097,000 960,451,000 393,087,000 303,071,000 280,450,000 257,425,000 242,831,000 237,757,000 230,498,000 201,842,000

Close Prev Close

Net Foreign Trade(peso) Buy(sell)

Leaders
Volume Close Net % Stocks 55,500 10 2.2 28.21% Vivant Corp. 2GO Group, Inc. 1,000 1.96 0.26 15.29% Boulevard Holdings, Inc. 339,100,000 0.165 0.02 12.24% MRC Allied, Inc. 21,350,000 0.174 0.02 11.54% Jolliville Holdings Corp. 1,000 2.99 0.29 10.74% Unioil Resources and Hldgs. Co., Inc. 230,000 0.238 0.02 10.19% MJC Investments Corp. 3,700 6.2 0.52 9.15% Swift Foods, Inc. Conv. Pref. 1,000 1.2 0.1 9.09% Manila Bulletin Publishing Corp. 15,000 0.74 0.06 8.82% 11,000 5.65 0.45 8.65% SPC Power Corp. Laggards Stocks Volume Close Net % 357,000 2.4 -0.59 -19.73% ATN Holdings, Inc. B Omico Corp.-Warrants 5,300,000 0.048 -0.01 -12.73% Highlands Prime, Inc. 8,000 1.71 -0.23 -11.86% Euro-Med Laboratories Phil., Inc. 22,000 1.79 -0.23 -11.39% Mabuhay Holdings Corp. 820,000 0.42 -0.03 -6.59% United Paragon Mining Corp. 142,100,000 0.015 0 -6.25% IP E-Game Ventures, Inc. 91,000,000 0.033 0 -5.71% Paxys, Inc. 2,753,000 2.85 -0.16 -5.32% TKC Steel Corp. 48,000 2.03 -0.1 -4.69% 1,930,000 0.25 -0.01 -3.85% Basic Energy Corp.

Dividend Update
ISSUE STOCK Philex Mining Corp. Manila Bulletin Pub. Corp. San Miguel Corp. San Miguel Pure Foods Pref. San Miguel Pure Foods Co., Inc. CASH P0.11 P0.05 P0.35 P20.00 P1.20 EX-DATE 03-Aug-12 03-Aug-12 07-Aug-12 23-Aug-12 23-Aug-12 RECORD 08-Aug-12 08-Aug-12 10-Aug-12 29-Aug-12 29-Aug-12 PAYABLE 03-Sep-12 03-Sep-12 03-Sep-12 03-Sep-12 03-Sep-12

Schedule of Meeting
Date Company
September 6 Phoenix Pet. Phils., Inc. (Special) 13 Wellex Industries, Inc. (Annual) 17 Steniel Mfg. Corp. (Annual) 17 Manila Jockey Club, Inc. (Annual)

Time & Place

2:00 p.m. Marco Polo Hotel, Davao City 10:00 a.m. 6/F One Corporate Center, Doa Julia Vargas Ave., Ortigas Center, Pasig City 1:00 p.m. Gateway Business Park, Brgy. Javalera, General Trias, Cavite 9:00 a.m. Turf Club, San Lazaro Leisure & Business Park, Carmona, Cavite

NOTE: These schedules are subject to change without any further notice.

MUTUAL FUNDS
FRIDAY, AUGUST 31, 2012

NAV One Year Three Year Five Year per share Return Return* Return* % % %

Y-T-D Return %

Stock Funds Primarily invested in Peso securities ATRKE Equity Opportunity Fund, Inc. * 3.1155 11.6% 21.65% 6.94% 13.53% 4.4518 16.61% 32.32% 17.61% 17.89% First Metro Save & Learn Equity Fund, Inc. * 465.43 20.36% 25.28% 12.54% 19.88% Philam Strategic Growth Fund, Inc. * Philequity Fund, Inc. * 25.3277 18.54% 26.17% 14.15% 18.19% 3.4242 18.96% 22.67% 12.03% 16.92% Philequity PSE Index Fund, Inc. * 568.62 21.01% 21.79% 9.14% 19.36% Philippine Stock Index Fund Corp. * 3.174 16.5% 21.51% 9.5% 18.16% Sun Life Prosperity Phil. Equity Fund, Inc. * 3.0338 9.29% 11.95% 7.18% 10.22% United Fund, Inc.* Primarily invested in foreign currency securities ATR KimEng Asia Plus Recovery Fund, Inc. ** $0.8889 -12.13% n.a. n.a. 0.32% Balanced Funds Primarily invested in Peso securities ALFM Growth Fund, Inc. * 207.77 11.62% 20.44% n.a. 11.86% 1.7642 10.37% 15.89% 6.3% 11.57% ATRKE Phil. Balanced Fund, Inc. * 1.6969 19.3% n.a. n.a. 18.54% Bahay Pari Solidaritas Fund, Inc.* First Metro Save & Learn Balanced Fund, Inc. * 2.4725 16.33% 29.73% 22.67% 16.64% 3.4958 17.39% 22.09% 11.61% 18.57% GSIS Mutual Fund, Inc. * 1.7086 17.24% n.a. n.a. 15.45% NCM Mutual Funds of the Phils., Inc. * 1.4261 10.74% 15.77% 7.98% 10.72% Optima Balanced Fund, Inc. * 15.3728 19.05% 22.84% 11.66% 18.16% Philam Fund, Inc. * 3.1081 13.71% 16.78% 8.06% 14.17% Sun Life Prosperity Balanced Fund, Inc. * Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. * $0.03375 9.13% n.a. n.a. 8.52% $0.9684 -0.56% n.a. n.a. 5.26% PAMI Asia Balanced Fund, Inc. * N.S. N.S. N.S. N.S. N.S. Paradigm Global Growth Fund, Inc. * Sun Life Prosperity Dollar Advantage Fund, Inc. * $2.8031 4.51% 3.59% 2.92% 5.73% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. * 292.29 7.87% 6.81% 6.19% 3.19% 2.1428 6.93% 10.91% 9.07% 5.75% Cocolife Fixed Income Fund, Inc. * 1.7984 10.66% 7.45% 5.69% 3.81% Ekklesia Mutual Fund, Inc. * First Metro Save & Learn Fixed Income Fund, Inc. 1.7358 12.42% 10.28% 7.88% 4.45% 1.2071 2.34% n.a. n.a. 1.05% Grepalife Bond Fund Corp. * 3.5475 8.73% 7.14% 6.36% 3.89% Philam Bond Fund, Inc. * 2.8908 7% 7.63% 6.42% 3.45% Philequity Peso Bond Fund, Inc. 1.6906 5.13% 4.06% 3.78% 3.88% Prudentialife Fixed Income Fund, Inc. * 2.4879 8.41% 7.2% 5.98% 3.31% Sun Life Prosperity Bond Fund, Inc. * Sun Life Prosperity GS Fund, Inc. * 1.4578 8.17% 8.18% 6.78% 4.11% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. * $386.3 7.03% 6.36% 5.19% 6.51% 189.86 6.5% 4.43% 3.62% 5.93% ALFM Euro Bond Fund, Inc. * $1.0583 2.89% n.a. n.a. 2.95% ATR KimEng Total Return Bond Fund, Inc. ** Grepalife Dollar Bond Fund Corp. * $1.4848 4.93% 5.99% 6.09% 4.1% P1.5439 7.15% 6.5% 5.79% 2.93% Grepalife Fixed Income Fund Corp. * $1.42833 6.13% 2.74% 3.67% 6.44% MAA Privilege Dollar Fixed Income Fund, Inc. 0.02825 n.a. n.a. n.a. 1.99% MAA Privilege Euro Fixed Income Fund, Inc. $1.2242 -2.27% 2.12% n.a. 1.43% PAMI Global Bond Fund, Inc. * $2.0385 8.95% 8.49% 7.17% 8.58% Philam Dollar Bond Fund, Inc. * Philequity Dollar Income Fund, Inc. $0.0520835 9.41% 8.27% 7.13% 8.06% $2.9006 9.29% 8.75% 6.93% 8.45% Sun Life Prosperity Dollar Abundance Fund, Inc. * Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. * 108.43 3.31% n.a. n.a. 1.87% 1.1113 0.31% 0.49% -1.01% -0.06% ATRKE Alpha Opportunity Fund, Inc. * 1.0608 2.23% 1.67% n.a. 1.53% First Metro Save & Learn Money Market Fund, Inc. Philam Managed Income Fund, Inc. * 1.1384 2.78% 1.93% 2.28% 1.88% 1.1302 0.47% 0.59% 1.12% 0.3% Sun Life Prosperity Money Market Fund, Inc. *
Source: Philippine Investment Funds Association, Inc. (PIFA) NOTE: * NAVPS as of the previous banking day; ** NAVPS as of two banking days ago

Banks ALI Ayala Land, Inc. 308,041 10,982,000 22.2 22.4 21.75 22.4 22.2 45,156,845 68.4 41.72 218,612 BDO Banco de Oro Unibank, Inc. 3,330,290 60.2 61.05 59.9 61.05 60.2 14,960,035 23.85 13.5 BEL Belle Corp. 3.18 49,840 3,073,000 4.75 4.8 4.68 4.72 4.7 (3,370,750) 77.1 51 266,727 BPI Bank of the Phil. Islands 1,226,410 72.8 75 71.95 75 72.8 (17,523,492) 5.4 8.59 2.26 10,560 CHI Cebu Hldgs., Inc. 13,000 5.5 5.5 5.3 5.5 5.45 518.18 340.91 61,883 CHIB China Banking Corp. 11,660 476.8 478 476 476.8 478 (5,387,274) 5.6 2.32 2,821 CPV Cebu Prop. Vent. & Devt. Corp. A 50,000 5 5 5 5 4.9 19.78 18.52 22,072 EW East West Banking Corp. 799,600 19.48 19.62 19.48 19.56 19.52 11,143,560 2.73 1.37 13,083 CPG Century Prop. Group, Inc. 640,000 1.47 1.5 1.46 1.47 1.47 100.2 60.1 192,242 (1,002,341,902) MBT MetroBank and Trust Co. 16,139,790 92.5 92.8 91 91.05 93.5 2.85 1.38 1,893 LAND City and Land Developers 23,000 2.8 2.8 2.8 2.8 2.81 94.5 65 3,998 PBC Philippine Bank of Comm. 0 76 76 76 76 76 - 1.19 0.98 3,693 CDC Cityland Devt. Corp. 32,000 1.1 1.14 1.1 1.14 1.15 77.4 41 45,794 655,790 69.6 70.3 68.85 69.15 69.6 (5,799,815) PNB Philippine National Bank 1,010,000 0.073 0.075 0.073 0.075 0.075 45.5 29.45 49,970 RCB Rizal Commercial Banking 187,800 43 43.8 43 43.8 43.05 (1,722,210) 0.089 0.062 1,020 CEI Crown Equities, Inc. 1.07 0.7 5,113 CYBR Cyber Bay Corp. 7,161,000 0.8 0.84 0.8 0.83 0.8 (290,500) 155 77.1 72,842 SECB Security Bank Corp. 1,549,170 149.5 151 145 145 149.5 84,549,608 0.92 0.56 8,948 ELI Empire East Land, Inc. 21,681,000 0.8 0.84 0.79 0.83 0.78 135 58 65,874 UBP Union Bank of the Phils. 112,500 101.8 102.8 101.8 102.7 101.8 1,188,927 4.55 3 5,169 ETON Eton Prop. Phils., Inc. 507,000 4.09 4.09 3.9 3.96 4.09 EVER Ever Gotesco Res. 0.29 0.129 1,005 0 0.201 0.201 0.201 0.201 0.201 Other Financial Institutions FLI Filinvest Land, Inc. 5,585,000 1.27 1.28 1.27 1.28 1.27 3,160,970 1.08 0.68 1,070 30,000 0.7 0.7 0.7 0.7 0.69 - 1.43 0.98 31,040 BKD Bankard, Inc. GERI Global-Estate Resorts, Inc. 7,398,000 1.83 1.88 1.8 1.88 1.82 (5,951,740) 2.1 1.42 4,174 BLFI BDO Leasing & Fin., Inc. 60,000 1.93 1.93 1.93 1.93 1.93 - 2.67 1.7 15,954 3.1 1.21 3,841 HP Highlands Prime, Inc. 8,000 1.7 1.71 1.7 1.71 1.94 23.9 13.8 9,682 COL COL Finl. Group, Inc. 1,101,800 20.55 20.7 20.5 20.7 20.7 - IRC 2.06 0.69 1,017 IRC Properties, Inc. 119,000 1.18 1.24 1.14 1.24 1.2 0.91 0.62 787 217,000 0.69 0.78 0.69 0.77 0.75 FAF First Abacus Financial MEG Megaworld Corp. 108,177,000 2.24 2.27 2.18 2.18 2.24 (44,513,360) 85 50 28,128 FMIC First Metro Invest. Corp. 50 74.6 74.6 74.6 74.6 74.7 - 2.33 1.52 55,948 MRC MRC Allied Industries, Inc. 21,350,000 0.159 0.177 0.159 0.174 0.156 718 2.78 2 1,582 1,279,000 2.5 3 2.5 2.63 2.5 - 0.34 0.151 I I-Remit, Inc. PHES Phil. Estates Corp. 1,209,000 0.69 0.69 0.67 0.67 0.69 650 435 816,613 120 441 450 441 450 458 - 0.96 0.09 969 MFC Manulife Financial Corp. 31 12.68 630 TFC Phil. Tob. Flue Curing and Redry 7,600 18.98 20 18 18 18 3.03 1.3 4,056 NRCP National Reinsurance Corp. 32,000 1.9 1.91 1.9 1.91 1.9 - RLC Robinsons Land Corp. 2,039,100 18.5 18.9 18.5 18.6 18.6 (16,439,728) 463 218 22,561 PSE The Phil. Stock Exchange, Inc. 14,620 370 375 360 369.8 370 (406,244) 19.68 10.4 76,145 ROCK Rockwell Land Corp. 21,783 128,000 3.6 3.6 3.55 3.57 3.6 (17,800) 1,100 880 549,494 SLF Sun Life Financial, Inc. 0 925 925 925 925 925 - 4.9 2.6 SHNG Shang Properties, Inc. 1.81 13,339 11,000 2.8 2.8 2.65 2.8 2.8 1.99 1.43 3,760 V Vantage Equities, Inc. 41,000 1.8 1.8 1.79 1.79 1.79 - 2.85 8.09 6 56,184 SMDC SM Development Corp. 839,700 6.07 6.1 6.01 6.06 6.06 (673,700) 14.56 8.8 243,231 SMPH SM Prime Hldgs., Inc. 11,846,400 13.94 14 13.74 14 13.8 (1,306,330) Electricity, Energy, Power & Water 0.86 0.64 7,342 SLI Sta. Lucia Land, Inc. 21,000 0.68 0.68 0.68 0.68 0.7 35.35 27 250,193 AP Aboitiz Power Corp. 2,385,800 33.65 34 33.65 34 33.7 (3,327,225) STR Starmalls, Inc. 2.32 33,704 34,000 3.98 4 3.98 4 4 1.58 1.1 8,682 ACR Alsons Cons. Res., Inc. 20,000 1.38 1.38 1.38 1.38 1.39 - 4.5 SUN 0.6 0.45 1,148 Suntrust Home Dev., Inc. 310,000 0.5 0.51 0.5 0.51 0.5 2.85 2.12 414 13,000 2.55 2.55 2.55 2.55 2.5 - H2O Calapan Ventures, Inc. VLL Land & Lifescapes 4.5 2.7 36,569 Vista 5,998,000 4.34 4.35 4.3 4.35 4.35 (13,642,010) 6.36 4.9 112,125 EDC Energy Devt. (EDC) Corp. 15,521,400 5.85 5.98 5.85 5.98 5.85 245,696 19.2 12.88 62,619 FGEN First Gen Corp. 3,184,700 18.64 18.64 18.5 18.62 18.6 (37,103,754) 79 51.8 41,793 FPH First Phil. Hldgs. Corp. 526,920 75.5 76.7 75 76.15 75 (2,286,896) Media ABS ABS-CBN Corp. 24.45 19,879 259,500 26 26.2 25.3 25.5 25.85 27.1 18.5 55,105 687,200 26.8 27.05 26.65 27.05 26.8 (1,490,500) 41.8 MWC Manila Water Co. GMA7 GMA Network, Inc. 32,770 88,700 9.9 9.9 9.75 9.75 9.9 279.8 216 279,080 3,892,820 240 251 240 247.6 250 (706,723,904) 10.9 6.2 MER Manila Electric Co. 0.79 0.57 2,230 MB Manila Bulletin Pub. Corp. 15,000 0.74 0.74 0.74 0.74 0.68 15.8 9.74 93,282 PCOR Petron Corp. 2,663,500 10.14 10.14 9.88 9.95 10 (11,483,001) 9.92 6.93 6,025 PNX Phoenix Petroleum Phils. 53,600 8.2 8.25 8.1 8.2 8.2 (46,820) 7.13 2.9 8,447 11,000 5.6 5.7 5.6 5.65 5.2 - Telecommunications SPC SPC Power Corp. 86,865 1,140 1,155 1,138 1,145 1,145 (26,896,395) 1.33 0.92 3,283 TA Trans-Asia Oil and Energy 870,000 1.15 1.16 1.14 1.16 1.15 - 1,249 831 151,592 GLO Globe Telecom, Inc. LIB Liberty Telecoms Hldgs. 10,000 2.63 2.74 2.63 2.74 2.63 14.52 2.55 10,235 55,500 7.8 10.2 7.8 10 7.8 - 3.7 2.63 3,545 VVT Vivant Corp. 2,870 2,100 591,993 TEL Phil. Long Dis. Tel. Co. 102,975 2,680 2,740 2,680 2,740 2,682 107,420,590 Food, Beverage & Tobacco 11.1 6.86 4,500 5,000 8.4 8.4 8.4 8.4 8.64 - Information Technology ANI Agrinurture, Inc. DFNN DFNN, Inc. 9.1 5.5 697 221,100 5.52 5.7 5.49 5.67 5.7 23.75 12 19,841 AMC Alaska Milk Corp. 12,100 23 23 22 22.4 22.4 4.4 1.86 448 CLOUD IP Converge Data Center, Inc. 38,000 1.95 2.02 1.95 2.02 2 (9,950) 1.64 0.85 1,453 FOOD Alliance Select Foods Intl., Inc. 1,482,000 1.42 1.45 1.4 1.44 1.38 (345,560) IP IPVG Corp. 812,000 1.02 1.02 1 1.01 1.01 27 18 5,453 GSMI Ginebra San Miguel, Inc. 3,300 18 18.8 18 18.8 18.8 - 3.5 1 1,308 3.8 2.55 5,844 ISM ISM Comm. Corp. 23,000 3 3.05 2.96 3.05 3 119.5 81.95 104,309 JFC Jollibee Foods Corp. 580,900 97.3 100 96.8 100 97.5 (4,357,482) WEB Philweb Corp. 606,000 16.94 17 16.52 16.94 16.98 237,338 91.25 28.75 1,900 LFM Liberty Flour Mills, Inc. 0 38 38 38 38 38 - 17.62 12.24 24,062 TSI Touch Solutions, Inc. 10,000 3.54 3.54 3.54 3.54 3.54 12.2 7.5 1,838 28,800 8.3 8.3 6.9 7.73 7.8 - 4.33 3.5 197 PCKH Pancake House, Inc. TBGI Transpacific Broadband 7,000 2.66 2.66 2.51 2.65 2.55 3.6 1.96 13,224 PIP Pepsi-Cola Products Phils. 1,508,000 3.55 3.59 3.51 3.58 3.55 2,142,860 3.3 2.48 588 4.2 1.05 13,116 330,000 4.24 4.24 4.02 4.15 4.04 22,700 RFM RFM Corp. 34.5 28 529,350 SMB San Miguel Brewery, Inc. 183,700 34 34.35 33.5 34.35 34.45 - Transportation Services 4.45 1.33 4,794 2GO 2Go Group, Inc. 1,000 1.96 1.96 1.96 1.96 1.7 128 110.6 265,444 SMC San Miguel Corp. 486,700 111.8 112 110.4 112 111.5 5,761,857 ATI Asian Terminals, Inc. 18,400 100 9.2 9.2 9.2 9.2 9 0.18 0.115 235 SFI Swift Foods, Inc. 2,510,000 0.144 0.145 0.141 0.141 0.143 - 10.68 7.3 823,570 59.75 59.85 58.8 58.8 60 (32,784,143) 12.98 3.3 47,458 TDY Tanduay Hldgs., Inc. 5,270,400 12.36 12.36 11.48 11.92 12.38 4,525,752 82.2 58.8 35,630 CEB Cebu Air, Inc. 77 45.25 133,053 ICT Intl. Cont. Terml. Serv., Inc. 1,432,520 68.3 68.5 67.05 68.5 68.1 (26,036,531) 68.05 37 132,853 URC Universal Robina Corp. 2,418,610 60.4 61 60 60.9 60.25 5,895,115 MAC Macroasia Corp. 2,000 2.66 2.9 2.66 2.9 2.9 2.99 1.16 2,794 374,000 1.36 1.38 1.35 1.38 1.38 - 3.81 2.7 3,581 VMC Victorias Milling Co. PAL 8.3 5.55 41,258 PAL Hldgs., Inc. 66,900 7.65 7.65 7.55 7.61 7.65 0.74 0.35 242 878,000 0.59 0.6 0.58 0.59 0.59 26,550 VITA Vitarich Corp. Hotel & Leisure Construction, Infrastructure & Allied Services 5.69 0.5 452 ACE Acesite (Phils.) Hotel Corp. 645,000 1.34 1.34 1.29 1.31 1.34 55.85 19.9 4,760 ABG Asiabest Group Intl., Inc. 154,000 23.7 23.9 21.95 23.8 23.7 (302,260) 0.49 0.104 1,315 BHI Boulevard Hldgs., Inc. 339,100,000 0.147 0.17 0.147 0.165 0.147 (59,400) 7.7 2.8 7,669 356,700 7.41 7.42 7.3 7.4 7.45 1,197,448 EEI EEI Corp. WPI Waterfront Philippines, Inc. 120,000 0.43 0.46 0.43 0.46 0.47 13 7.8 80,522 HLCM Holcim Philippines, Inc. 101,500 12.48 12.5 12.4 12.48 12.48 (648,934) 0.66 0.35 1,150 17.98 7.92 18,940 103,100 17 17 17 17 17 1,700,000 MWIDE Megawide Const. Corp. 12.3 10.18 2,835 500 11 11 11 11 10.18 - Casinos & Gaming PHN Phinma Corp. BCOR Berjaya Phils., Inc. 23,535 17,000 24 27 24 27 25 2.8 1.99 1,908 T TKC Steel Corp. 48,000 2.02 2.1 2.01 2.03 2.13 - 27 15 76 4.46 101,874 BLOOM Bloomberry Resorts Corp. 6,642,300 9.79 9.8 9.58 9.62 9.79 (27,673,116) 1.17 0.77 545 435,000 0.92 0.92 0.92 0.92 0.93 - VUL Vulcan Industrial Corp. 0.3 0.033 623 EG IP E-Game Vent., Inc. 91,000,000 0.034 0.035 0.033 0.033 0.035 10,200 10.18 5.99 7,949 LR Leisure and Resorts Corp. 247,100 8 8 7.51 7.95 8.01 Chemicals MJC 3.82 1.25 2,406 Manila Jockey Club, Inc. 592,000 2.77 2.8 2.75 2.79 2.77 (19,400) COAT Chemrez Technologies, Inc. 837,000 2.58 2.58 2.54 2.56 2.6 1,078,800 2.74 2.32 3,384 LOTO 15.13 11.47 4,037 Pacific Online Sys. Corp. 40,300 13.82 13.82 13.8 13.8 14 2.85 1 7,361 EURO Euro-Med Lab. Phil., Inc. 22,000 1.8 1.8 1.76 1.79 2.02 17,600 9.53 5 5,496 PRC Philippine Racing Club 2,200,000 9.49 9.5 9.49 9.5 9.49 (19,000,000) 8 1.21 428 LMG LMG Chemicals Corp. 1,240,000 2.2 2.29 2.05 2.21 2.17 (46,410) MIH Manchester Intl. A 3.05 1.32 736 19,000 2.65 2.7 2.65 2.7 2.65 - Retail CAL Calata Corp. 23.95 5.65 2,035 256,600 5.76 5.78 5.65 5.65 5.76 Electrical Components & Equipment 29.5 10.68 78,843 PGOLD Puregold Price Club, Inc 3,636,900 28.5 28.8 28.3 28.5 28.25 (13,352,235) 9.74 6.33 1,884 CHIPS Cirtek Hldgs. Phils. Corp. 900 9.7 9.7 9.3 9.68 9.67 - GREEN Greenenergy Hldgs., Inc. 151,600,000 0.017 0.017 0.016 0.016 0.016 (2,226,400) 0.019 0.011 1,550 IMI Integ. Micro-Electronics 34,000 5.83 3.9 5,736 3.98 4 3.98 4 4 - Other Services APC APC Group, Inc. 0.51 4,507 401,000 0.6 0.6 0.6 0.6 0.6 ION Ionics, Inc. 1.02 0.47 548 23,000 0.63 0.64 0.63 0.64 0.63 - 0.74 ICTV Information Capital Tech. 30,000 0.41 0.41 0.41 0.41 0.4 6.75 4.5 2,050 PMPC Panasonic Mfg. Phils. Corp. 1,000 4.85 4.85 4.85 4.85 4.8 - 0.87 0.36 540 3.1 1.65 1,820 JTH JTH Davies Hldgs., Inc. 134,000 1.73 1.75 1.65 1.65 1.7 23,600 PAX Paxys, Inc. 3.27 1.05 3,273 2,753,000 3.01 3.05 2.85 2.85 3.01 (116,010) Other Industrials ALPHA Alphaland Corp. 48 28 58,736 1,500 29.6 29.6 29.6 29.6 29.6 - Mining SPH Splash Corp. 2.2 1.75 1,149 125,000 1.77 1.77 1.77 1.77 1.81 0.0077 0.0039 933 AR Abra Mng. and Indl. Corp. 630,000,000 0.005 0.0053 0.0049 0.0051 0.0049 5,500 20.5 14.8 35,151 AT Atlas Cons. Mng. & Devt. 994,700 17 17.02 16.96 16.96 17 (3,100,940) Holding Firms AB Atok-Big Wedge Co., Inc. 21.75 68,461 1,000 26.9 26.9 26.9 26.9 26.9 26,900 1.15 0.66 2,018 ABA Abacus Cons. Res. & Hldg. 34,831,000 0.76 0.79 0.74 0.76 0.75 94,800 38.6 BC Benguet Corp. A 19.98 2,455 0 24 24 24 24 24 AEV Aboitiz Equity Ventures 54.8 36 267,811 2,014,000 47.55 48.5 47.4 48.5 47.5 (7,170,080) 28.4 2,500 22.35 22.35 22.35 22.35 22.3 (33,525) 0.018 0.014 2,295 APM Alcorn Gold Res. Corp. 5,100,000 0.017 0.018 0.017 0.018 0.018 - 32.8 21.2 1,374 BCB Benguet Corp. B 2.15 1.06 2,990 CPM Century Peak Metals Hldgs. 793,000 1.02 1.06 1.01 1.06 1.07 13.7 8.42 120,979 AGI Alliance Global Group, Inc. 33,418,800 11.74 11.8 11.62 11.78 11.74 115,462,972 59.95 7 1,872 DIZ Dizon Copper Silver Mines 127,800 23.75 25.3 23.5 24 23.6 2.4 1.8 2,307 APO Anglo-Phil. Hldgs. Corp. 100,000 1.98 1.98 1.98 1.98 2 - 1.13 0.51 1,960 GEO GEOGRACE Res. Phils., Inc. 3,137,000 0.57 0.58 0.56 0.56 0.56 2,800 ANS A. Soriano Corp. 5 3 11,800 260,000 4.72 4.72 4.72 4.72 4.55 - 1.77 1.09 28,631 LC Lepanto Cons. Mng. A 14,730,000 1.1 1.11 1.07 1.1 1.11 AAA Asia Amalgamated Hldgs. 21,000 5 5 6.71 0.28 3,960 4.95 4.95 5 (10,000) LCB Lepanto Cons. Mng. B 9,157,000 1.14 1.16 1.12 1.15 1.14 (2,446,760) ATN ATN Hldgs., Inc. A 2.85 1.51 607 230,000 1.61 1.65 1.56 1.64 1.61 - 2.04 1.14 19,955 0.082 0.043 7,395 MA Manila Mining Corp. A 90,830,000 0.06 0.061 0.059 0.061 0.06 ATNB ATN Hldgs., Inc. B 3.79 2.22 192 357,000 3.02 3.02 2.4 2.4 2.99 - 0.085 0.044 4,846 MAB Manila Mining Corp. B 9,080,000 0.059 0.06 0.059 0.06 0.061 (4,720) AC Ayala Corp. 481 273.2 244,002 625,650 418 420 409 411 417.6 (129,494,326) NIKL Nickel Asia Corp. 1,075,300 17.2 17.2 16.6 16.6 16.98 (711,284) 63.4 30.6 153,753 DMC DMCI Hldgs., Inc. 2,824,980 56.4 57.9 56.3 57.9 57 (6,026,768) 23.67 11 33,424 12.56 3.02 6,665 NI Nihao Min. Resources 577,300 7.24 7.39 7.12 7.3 7.1 (109,500) 3.56 1.36 775 FJP F&J Prince Hldgs. Corp.A 209,000 2.57 2.65 2.57 2.65 2.48 - OM Omico Corp. 0.67 704 530,000 0.7 0.7 0.67 0.67 0.68 77,720 FDC Filinvest Devt. Corp. 5.06 3.3 36,990 103,000 4 4 3.97 3.97 4 160,000 0.9 8.25 3.02 6,752 ORE Oriental Peninsula Res. 508,000 4.7 4.7 4.55 4.65 4.72 4,630 FPI Forum Pacific, Inc. 0.34 0.17 460 0 0.25 0.25 0.25 0.25 0.25 - 27.7 18.52 93,134 PX Philex Mining Corp. 1,676,500 18.84 18.88 18.8 18.88 18.8 1,278,176 554 465 84,846 GTCAP GT Capital Hldgs., Inc. 50,190 535 538.5 535 537 536 11,135,330 SCC Semirara Mining Corp. 90,470 219 224 217.4 224 219 (4,954,406) 5.12 2.94 2,964 HI House of Investments, Inc. 21,000 4.86 4.86 4.81 4.81 4.85 52,910 256 164 79,800 0.027 0.015 3,920 UPM United Paragon Mng. Co. 142,100,000 0.015 0.015 0.014 0.015 0.016 150,000 35.5 19.5 223,752 JGS JG Summit Hldgs., Inc. 1,131,900 33.05 33.85 32.05 33.2 33.05 7,405,050 4.08 2.08 842 JOH Jolliville Hldgs. Corp. 1,000 2.99 2.99 2.99 2.99 2.7 - 1.49 0.66 777 LIHC Lodestar Invest. Hldg. Corp. A 684,000 1.06 1.06 1.04 1.05 1.05 - Oil BSC Basic Energy Corp. 1,930,000 0.26 0.26 0.25 0.25 0.26 6.16 4 23,330 LPZ Lopez Hldgs. Corp. 5,662,100 5.05 5.1 5.05 5.09 5.05 (10,814,034) 0.34 0.18 611 0.031 0.014 2,040 OPM Oriental Pet. & Min. Corp. A 43,600,000 0.018 0.018 0.017 0.017 0.017 MHC Mabuhay Hldgs. Corp. 0.8 0.3 510 820,000 0.43 0.43 0.42 0.42 0.46 43,000 0.031 0.016 1,440 OPMB Oriental Pet. & Min. Corp. B 1,000,000 0.018 0.018 0.018 0.018 0.018 3.73 1.86 4,079 MARC Marcventures Hldgs., Inc. 728,000 2.3 2.35 2.26 2.35 2.31 (23,500) PERC Petroenergy Res. Corp. 3,879,800 5.95 5.95 5.95 5.95 5.96 4.6 2.61 102,580 MPI Metro Pac. Inv. Corp. 16,774,000 4.13 4.17 4.05 4.17 4.13 (2,467,310) 6.74 5.22 1,629 PXP 47 4.48 58,820 Philex Petroleum Corp. 654,500 34.9 34.9 32.25 34.6 34.9 (3,332,885) MIC Minerales Industrias Corp. 5.86 3.45 973 71,600 5.12 5.19 5.07 5.12 5.15 4,572 OV 0.06 0.017 8,826 The Philodrill Corp. 78,000,000 0.046 0.047 0.046 0.046 0.047 9.66 1.23 1,475 MJIC MJC Investments Corp. 3,700 6.3 6.3 6.2 6.2 5.68 0.066 0.045 2,040 PA Pacifica, Inc. 7,130,000 0.05 0.052 0.05 0.051 0.051 (2,000) 0.72 0.43 1,113 POPI Prime Orion Phils., Inc. 900,000 0.46 0.47 0.46 0.47 0.46 - Preferred ACPA Ayala Corp. Pref. A 1,000 544 544 541 541 542 1.92 1.3 542 PRIM Prime Media Hldgs., Inc. 20,000 1.4 1.4 1.4 1.4 1.36 - 580 535 6,492 109 101.5 4,386 FPHP First Phil. Hldgs. - Pref. 3,900 102 102 102 102 102 SINO Sinophil Corp. 0.39 0.28 2,576 240,000 0.33 0.33 0.33 0.33 0.33 - 1,050 1,010 15,195 PFP San Miguel Purefoods Pref. 1,490 1,013 1,013 1,013 1,013 1,013 SM SM Investments Corp. 758 450 435,237 429,760 706 710 702 709 706 (43,101,630) 116.7 108 10,810 PPREF Petron Corp. Perpetual Pref. 1,300 108 108.1 108 108.1 108 SGI Solid Group, Inc. 2.42 1.1 3,953 318,000 2.21 2.21 2.17 2.17 2.21 - 1.85 0.87 77 SFIP Swift Foods, Inc. Conv. Pref. 1,000 1.2 1.2 1.2 1.2 1.1 SOC South China Resources 1.53 1.1 1,015 32,000 1.13 1.13 1.12 1.12 1.12 - 0.37 0.15 378 UNI Unioil Res. And Hldgs. Co. 230,000 0.238 0.238 0.238 0.238 0.216 - WIN Wellex Industries, Inc. 0.58 0.087 1,065 580,000 0.31 0.33 0.31 0.33 0.33 - Warrants, Phil. Deposit Receipts, Etc. 50 23.3 6,922 ABSP ABS-CBN Hldgs. Corp. 1,120,800 25.8 25.8 25 25.45 25.55 (14,205,545) ZHI Zeus Hldgs., Inc. 0.93 0.39 1,093 1,930,000 0.4 0.4 0.38 0.4 0.4 - 10.94 6.03 8,266 GMAP GMA Hldgs., Inc. 549,700 9.58 9.7 9.5 9.6 9.95 (2,634,100) MEGW1 1.27 0.67 533 Megaworld Corp.- Warrants1 2,092,000 1.28 1.28 1.21 1.21 1.24 748,000 Property MEGW2 1.28 0.67 4,652 Megaworld Corp.Warrants2 823,000 1.28 1.28 1.28 1.28 1.2 3.08 1.74 3,398 BRN A Brown Co., Inc. 24,000 3.03 3.03 2.99 2.99 3 OMW2 Omico Corp.-Warrants 6 5,300,000 0.055 0.056 0.0048 0.048 0.055 ALCO Arthaland Corp. 0.194 0.15 904 30,000 0.17 0.17 0.17 0.17 0.17 - 0.189 0.048

EDITOR JUDY T. GULANE Monday, September 3, 2012

Banking&Finance
Yield,
S2/ 1 hovering between 3 to 3.3%. I expect the inflation rate to be at 3.4% for August, Mr. Ravelas said. Oil prices have been cooperative and the peso has remained stable, helping mitigate price increases, he added. Mr. Basas said the August inflation number will be a key determinant of bond movements this week. If it will come out higher than expected, rates will probably go up but I expect it to be in line with the BSP forecast, Mr. Basas said. The BSP is expecting August inflation to fall within the 2.9-3.8% range. For his part, Mr. Ravelas said yields would probably move sideways to down in the coming weeks as the market anticipates another BSP rate cut.

S2/3

MARKET WATCH
LENDING RATES
FRIDAY, AUGUST 31, 2012

Theres a lot of cash in the sysHigh Low tem and investors keep on injectUNIVERSAL BANKS ing fresh funds into the market, LOCAL BANKS Deanno J. Basas, ATR KimEng Allied Banking Corporation 8.4000 8.4000 Banco de Oro Unibank 5.4520 4.4520 Asset Management investment 6.4000 5.0000 Bank of the Philippine Islands director for fixed income, said in a China Banking Corporation 9.0000 5.5000 phone interview last Friday. 6.6500 4.6500 Development Bank of the Philis. He noted that debt papers have Land Bank of the Phils. 6.7500 3.7500 been trading at a relatively tight MetroBank and Trust Co. 8.0000 6.0000 Philippine National Bank 9.2980 7.2980 range for the past weeks. There 6.4520 4.4520 Philippine Trust Co. are not so many factors locally, not Rizal Commercial Banking Corp. 7.7500 5.7500 many incentives that would cause Security Bank Corporation 8.4000 6.4000 significant movement in rates. The Union Bank of the Philippines 8.5000 6.5000 market is still waiting for what the 7.8750 5.8750 United Coconut Planters Bank BSP [Bangko Sentral ng Pilipinas] AVERAGE 7.6098 5.6944 will do in the next Monetary Board BRANCHES OF FOREIGN BANKS policy-setting meeting, Mr. Basas ANZ Bank 10.4000 7.8000 added. Deutsche Bank 8.8870 4.0000 Jonathan L. Ravelas, BDO UniHongkong & Shanghai Bank 4.2400 1.9900 bank Inc.s chief market strategist, ING Bank 7.4400 6.3900 Mizuho Corporate Bank Ltd. 7.0000 3.2500 said the market is expecting anStandard Chartered Bank 9.7500 4.7500 other rate cut this month. 7.7660 4.8360 AVERAGE Inflation has remained tame,

News to set peso-dollar direction

The peso, poised to reenter the P41-per-dollar territory at the close of last weeks trading, will remain headline-driven this week. Dealers said trading will be dictated by what Federal Reserve Chairman Ben Bernanke said at the annual gathering of central bankers and economists at Jackson Hole, Wyoming last Friday as well as the upcoming meeting of the European Central Bank (ECB) this Thursday. Mr. Bernanke reiterated the US central bank was ready to provide stimulus as US economic growth remained low and unemployment high, but did not provide any clues as to when the Fed will deliver this. This was expected by market players. We think Mr. Bernanke
jonathan l. cellona

The peso closed at P42.06:$1 last Friday, preparing to reenter the P41:$1 territory.

COMMERCIAL BANKS LOCAL BANKS: Government Securities Yield Curve Asia United Bank 7.0000 6.0000 Bank of Commerce 8.9375 6.4375 BDO Private Bank 5.4520 4.4520 East West Bank 7.3750 6.1250 8.2500 7.2500 Phil. Bank of Communications Philippine Veterans Bank 7.7500 5.7500 9.2500 5.5000 Robinsons Bank Corp. AVERAGE 7.7164 5.9306 BRANCHES OF FOREIGN BANKS Bangkok Bank 8.8500 5.0000 Bank of America 6.4950 4.4950 Bank of China 7.5000 4.5000 Bank of Tokyo-Mitsubishi 5.7500 4.7500 6.9800 3.5900 Citibank, N.A. JPMorgan Chase Bank 8.9000 6.9000 Korea Exchange Bank 9.5000 6.3000 8.5000 5.5000 Mega Intl. Comml. Bank Co. Ltd. AVERAGE 7.8094 5.1294 SUBSIDIARIES OF FOREIGN BANKS 91-day 182-day 364-day 2-year 3-year 4-year 5-year 7-year 10-year 20-year 25-year Chinatrust Bank 6.2420 5.2420 Maybank 11.2500 6.5000 current 1.38 1.68 2.10 2.49 3.73 4.19 4.42 4.68 4.86 5.67 5.70 AVERAGE 8.7460 5.8710 month ago 1.84 2.10 2.29 2.61 3.51 4.22 4.47 4.69 4.91 5.56 5.71 GENERAL AVERAGE 7.7952 5.4583 a year ago 0.95 1.00 1.55 2.59 3.03 4.24 4.35 4.95 5.73 7.54 7.67

will wait for the non-farm payrolls data for August to get a clearer view on the US economy, a trader said. US employment data for August is scheduled for release on Sept. 7. The Federal Open Market Committee, the Federal Reserves policy-setting body, will meet on Sept. 12-13.

The governing council of the ECB, meanwhile, will meet on Sept. 6 and is expected to discuss a bond-buying program designed to lower the euro zones most indebted members borrowing cost. The peso strengthened by 10.5 centavos to settle at P42.06 Peso, S2/ 4

Sterling,
S2/ 1 capital to boost its Tier 1 capital adequacy ratio, which stood at 9.67% as of June, and to fund an expansion plan, which may include taking over another lender. The share sale is still being reviewed by the Bangko Sentral ng Pilipinas. Mr. Villena, however, said the bank is not precluded from welcoming new investors. Limiting [the sale of new shares] to existing shareholders is not definite. At the moment, it will simplify matters if we limit it to existing shareholders, considering the amount is small. But the final composition still needs to be submitted to and approved by the banks board of directors, he said. The money that will be raised will add to the banks existing P1.65 billion core capital. It will be used to increase the banks loan portfolio, finance its expansion and strengthen its capital base, he added. Sterling Bank Executive Vice President Asterio L. Favis, Jr., interviewed in June, said the bank is planning the issuance of preferred shares to be priced P10 each. Holders of preferred shares get their dividends first before holders of common shares. They are also paid first in case of bankruptcy. However, they have no voting rights. Asked about the banks expansion plans, Mr. Villena reiterated the bank is always open to acquiring other banks. Sterling Bank is open to any possibility of expansion either organically or via acquisitions, but it will depend on our capability and if the new bank is strategically fit for us, he said. A. R. R. Gregorio

Source: BSP

Source: Philippine Dealing and Exchange Corp. (As of August 31, 2012)

MANILA Reference Rates

Percent per annum; Weekly rates

ECB,
S2/ 1 ($260 billion) in bonds from Greece, Ireland, Portugal, Italy and Spain as part of the program. Nevertheless, the SMP has lain dormant for much of this year, despite expectations it could be restarted any time. Mr. Weidmann who insists he is not the only person to suffer stomach pains about the programme argues the bond purchases, which have worked in the past at bringing down the borrowing costs of crisis-hit countries, are tantamount to monetary financing, where the central bank prints money to pay off a countrys debt. And that is expressly forbidden under the ECBs statutes. He also fears the measures will fuel inflation, ease the pressure on over-spending governments to get their finances in order and erode the independence of the ECB. But Mr. Weidmanns opposition is not the only problem. The ECB has said any new bond purchases will only be carried out in parallel with the EFSF and its successor the ESM or European Stability Mechanism, a permanent 500-billion rescue fund that should have been up and running at the beginning of July, but has been held up by Germanys Constitutional Court. The court is scheduled to decide on Sept. 12 whether the ESM can be signed into law, or whether its fate must wait until next year when the court will make a final ruling on the funds compatibility with the German constitution. If the courts judgement means the ESM cannot take effect in the planned format, the ECB will also have to redefine the details of its program, said Commerzbanks Mr. Schubert. For that reason, Thursdays council meeting is likely to decide only on those details that are independent of the ESM, the analyst said. Of course, the ECB has other tools at its disposal to help fight the crisis fires, such as a further reduction in euro zone interest rates. Since the crisis re-erupted late last year, the central bank under Mr. Draghi has brought borrowing costs down to an all-time low of 0.75%. Additional easing may be on the cards if the euro zone economy, which already contracted by 0.2% in the second quarter, weakens further. The ECB is set to publish its updated economic forecasts on Thursday and the Austrian central bank head Ewald Nowotny indicated a downgrade is likely. AFP

New MRR (days)

Apr 23-27 Jul 16-20 Aug 13-17 60 3.7500% 3.6250% 3.8125% 90 6.5625% 6.5000% 6.5625% 180 6.6875% 6.7500% 6.6875% FOREIGN Interest Rates
Percent per annum

Jul 06

Aug 03

Aug 31

LIBOR 90-days 180 SIBOR 90-days 180

0.4576 0.4394 0.4183 0.7364 0.7237 0.7077 0.4617 0.4413 0.4275 0.7333 0.7250 0.7113

FOREX RATE
FRIDAY, AUGUST 31, 2012
41.50

42.00

42.50

43.00

43.50

13.7 ctvs
Apr May Jun Jul

44.00

Aug

PDS weighted average rate

Current: P42.178 Volume: $680.72 M Previous: P42.315

INTERBANK RATES
THURSDAY, AUGUST 30, 2012
Demand Rate
HIGH: 4% LOW: 3 7/8% AVE.: 3 7/8%

HIGH
4.60

LOW

CLOSE

4.42

4.24

4.06

3.88

3.70

Apr

May

Jun

Jul

Aug

Daily Volume

P8.000 B

35.0

28.0

21.0

14.0

7.0

0.0

Apr

May

Jun

Jul

Aug

4/S2

Banking&Finance

EDITOR JUDY T. GULANE Monday, September 3, 2012

China wont challenge WTO ruling

GENEVA/WASHINGTON The United States welcomed Chinas decision on Friday not to appeal a trade panel ruling that Beijing discriminated against US bank card suppliers such as Mastercard Inc. and Visa Inc. in favor of a stateowned enterprise, China UnionPay. Fair and open financial services markets are critical to facilitating global trade, US Trade Representative Ron Kirk said in a statement, noting that China now had 30 days to say how it would comply with the World Trade Organizations July 16 ruling. The US case accused China of imposing a series of measures dating back to 2001 that discriminated against foreign suppliers of electronic payment systems that allow consumers to make purchases using credit, debit, prepaid and other payment cards. More than $1 trillion worth of electronic payment card transactions are processed in China each year, making it a hugely attractive the WTO whether it intended to appeal the July decision. In a statement, Beijing played down the significance of the panels ruling, even though the United States heralded it as a major victory in its effort to open Chinas financial services sector to more foreign competition. In fact, Chinas electronic payments market is already very open, Chinas Commerce Ministry said. The panels decision rejected the US charges that UnionPay was the only service provider, and affirmed that (Chinas policy) does not prevent foreign service providers from entering Chinas market. Although the July ruling found that China UnionPay (CUP) had a monopoly on yuan payment cards issued and used in China, it rejected the US claim that CUP was an across-the-board monopoly supplier for all transactions denominated in yuan. A US diplomat, according to a transcript that did not identify individuals by name, told the WTOs Dispute Settlement Body the United States was disappointed the ruling had stopped short of branding CUP as a monopoly or exclusive supplier. Chinas representative at the meeting said that claim had been the centerpiece of the US case, and China commended the dispute panel for rejecting it. However, despite Chinas decision not to appeal, the Chinese official also said the ruling was not entirely free from error, and China was troubled by parts of it. The Chinese Commerce Ministry, in its statement, said China believed cooperation and competition between domestic and foreign companies would help develop its payments market. China will continue to push forward with reform and opening up and international cooperation in the electronic payments market, the ministry said. Reuters

T-bill,
S2/ 1 another trader said tenders for the debt papers are expected to be at least twice the governments P7.5billion offer. The high liquidity in the market could further push down the rates of the debt papers, sustaining the rally in government debt papers, he said. Ann Rozainne R. Gregorio

Peso,
S2/ 3 per dollar last Friday against its P42.165-per-dollar close the week before. News the Philippine economy grew by 5.9% in the second quarter, lower than the revised 6.3% rise in the previous quarter but still high enough to average 6.1% for the first half or above the governments 5-6% target for the year, lifted the local unit against the dollar last week. The peso is seen trading within the P41.70-to-P42.30-per-dollar band this week.
FRIDAY, AUGUST 31, 2012

The WTO said China favored UnionPay and discriminated against US card suppliers.

afp

market for US electronic payment services firms such as Visa and MasterCard. The WTO panel agreed that Chinas pervasive and discriminatory practices are unfair to American suppliers of electronic payment services and discriminate at each stage of a payment card

transaction, Mr. Kirk said. The message to the Government of China is that those practices must end, Mr. Kirk said. As many as 6,000 jobs could be gained from increased access to Chinas electronic payments market, Mr. Kirks office said. China had until Friday to notify

BSP REFERENCE RATES

Enjoy your breakfast with a daily serving of accurate business news at our partner establishments.
II Rustans Rockwell CAINTA: Sta. Lucia East Grand Mall QUEZON CITY: Farmers Mall Rustans Katipunan Times Plaza MANILA: Robinsons Manila Doctors Iloilo Doctors College, Molo CB- Kalibo Airport, Predeparture Area Kalibo Airport CB- Plaza Libertad, JM Basa St. Iloilo City QUEZON CITY: CB-SM Cubao Lower G/L Cyberzone Area, SM Cubao, Araneta Ctr, Cubao. CB-Waltermart Muoz G/L Waltermart, North Edsa Bonifacio Global City, Taguig City The Paseo Center, Makati City Rockwell Center, Makati City Westgate Center, Muntin lupa Entertainment Mall, SM Mall of Asia Midtown Robin sons Place Manila Trinoma Mall, Quezon City The Terraces, Ayala Center Cebu Resort World Manila, Pasay City

CAF TERRACE

THE COFFEE BEAN & TEA LEAF

Greenbelt 3 Four Seasons Salcedo Convergys Ayala Avenue Rockwell Power Plant Mall A. Venue The Residences at Greenbelt Ayala Triangle Gardens Bellagio Square, Tomas Morato Eastwood City Walk 2 Eastwood Mall Gateway Mall Gateway Cinema Level TriNoma Level 3 Indoor TriNoma Level 3 Outdoor UPAyala Land TechnoHUB Robinsons Galleria Centris Walk Regis Center, Katipunan Ave. The Promenade, Greenhills Ortigas Park Rockwell Business Center SM Megamall Atrium Shangri-La Plaza Robinsons Midtown De La Salle UniversityCybernook University Mall Alabang Town Center Asian Hospital Forbestown Burgos Circle Bonifacio High Street The Venetian Mall, McKinley Hill SM Mall of Asia Newport City One Archers Place Ronac Art Center Avenue of the Arts Residences, Roxas Blvd. 1771 Adriatico St., Malate Two E-com Center Victory Lipa, Batangas CEBU: SM North Wing Asiatown IT Park The Terraces at Ayala Center Robinsons Cybergate DAVAO: Abreeza Mall, Davao City

SEATTLES BEST COFFEE

QUEZON CITY: Katipunan (near Ateneo) Cyber One Mall, G/F Eastwood Cyber Park SM City North EDSA, The Block, G/F Trinoma, 2/L, EDSA cor. North Ave. MANILA: SM City Manila, U/G Metropolitan Hospital, G/ F Lobby Harrison Plaza Village Square, G/F, Vito Cruz Neo Plaza, Ongpin St. PASAY: SM Mall of Asia, G/F MAKATI: New Greenbelt 3, G/F Manila Polo Club, G/F Lobby, McKinley Rd. Unit G2 Ponte Salcedo, 120 Valero St., Salcedo Village PASIG: SM Megamall, G/F, Megastrip Bldg. B Tektite, East Tower G/F Lobby, Phil. Stock Exchange Centre SOUTH AREA: Festival Mall, 3/L, Alabang, Muntinlupa City Alabang Town Center, G/F CALTEX SLEX, Southbound, Mamplasan, Laguna TAGUIG: Bonifacio High St., City Center Quadrant 3, Global City

Equivalent Equivalent Equivalent Equivalent Equivalent Equivalent of foreign of US$1 of foreign of RPP in of foreign of EURO currency in in foreign currency in foreign currency in in foreign Currency US Dollar currency RP peso currency EURO currency Convertible currencies with BSP US dollar 1.000000 1.000000 42.315000 0.023632 0.799552 1.250700 Japanese yen 0.012718 78.628715 0.538200 1.858045 0.010169 98.338086 1.579000 0.633312 66.815400 0.014967 1.262493 0.792084 UK pound Hongkong dollar 0.128934 7.755906 5.455800 0.183291 0.103089 9.700356 Swiss franc 1.041667 0.960000 44.078100 0.022687 0.832867 1.200672 1.008166 0.991900 42.660500 0.023441 0.806081 1.240570 Canada dollar Singapore dollar 0.798085 1.252999 33.771000 0.029611 0.638111 1.567125 Australia dollar 1.031460 0.969500 43.646200 0.022912 0.824706 1.212553 2.652661 0.376980 112.247400 0.008909 2.120941 0.471489 Bahrain dinar * Kuwait dinar N/A N/A N/A N/A N/A N/A Saudi Arabia rial 0.266667 3.749995 11.284000 0.088621 0.213214 4.690124 0.794913 1.257999 33.636700 0.029729 0.635574 1.573381 Brunei dollar Indonesia rupiah 0.000105 9523.809524 0.004400 227.272727 0.000084 11904.761905 Thailand baht 0.031888 31.359759 1.349300 0.741125 0.025496 39.221839 0.272272 3.672798 11.521200 0.086797 0.217696 4.593562 U. A. E. Dirham E.M.U. euro 1.250700 0.799552 52.923400 0.018895 1.000000 1.000000 South Korea won 0.000882 1133.786848 0.037300 26.809651 0.000705 1418.439716 0.157490 6.349609 6.664200 0.150056 0.125921 7.941487 China yuan ** Others (Not Convertible with BSP) Argentina peso 0.216099 4.627509 9.1442 0.109359 0.172782 5.787640 Brazil real 0.488043 2.049000 20.6515 0.048423 0.390216 2.562683 Denmark kroner 0.167926 5.955004 7.1058 0.140730 0.134266 7.447902 0.017976 55.629729 0.7607 1.314579 0.014373 69.574897 India rupee Malaysia ringgit 0.320205 3.122999 13.5495 0.073803 0.256021 3.905930 Mexico new peso 0.074927 13.346324 3.1705 0.315408 0.059908 16.692261 0.798594 1.252201 33.7925 0.029592 0.638518 1.566127 New Zealand dollar Norway kroner 0.171942 5.815915 7.2757 0.137444 0.137477 7.273944 Pakistan rupee 0.010585 94.473311 0.4479 2.232641 0.008463 118.161408 0.11812 8.465967 4.9982 0.200072 0.094443 10.588397 South African rand Sweden kroner 0.149638 6.682794 6.3319 0.157930 0.119643 8.358199 Syria pound 0.015049 66.449598 0.6368 1.570352 0.012032 83.111702 0.033425 29.917726 1.4144 0.707014 0.026725 37.418148 Taiwan dollar Venezuela bolivar 0.233138 4.289305 9.8652 0.101366 0.186406 5.364634 SDR Rate = $1.52032 SDR GOLD Buying: $1,655.90 SILVER Buying: $30.40 * Various banks in Bahrain as quoted in Reuters Screen ** Asian Time Closing Rate as of August 30, 2012
source: Bangko Sentral ng Pilipinas

STACKERS BURGER CAFE

Unit 7 Orchard Road, across New Eastwood Mall Shop 5, 4th Floor, Newport Commercial & Entertainment Center, Newport, Pasay City

Glorietta 3 Park, Ayala Center Makati Eastwood Mall, Libis, Quezon City Burgos Circle, Bonifacio Global City

PARK CAF

PESO CROSS RATES

FRIDAY, AUGUST 31, 2012

BON VIVANT COFFEE GOOD LIFE

2/F Snack Food Cart Center, 168 Mall, Divisoria, Manila 255 Samson Road, Monumento, Caloocan City Main: Holsum Foods Inc. 145 Gen. Evangelista Ext. Bagong Barrio, Balintawak, Caloocan City G/F Foodcourt, QI Central, Puregold, E. Rodri guez cor. Araneta, Quezon City

MANDALUYONG : Shangri-La Level 5 Edsa Shangri-La Plaza Mall Megamall Level 2 Mega Atrium SM Megamall MANILA: Robinson Level 4, Rob inson Place, Midtown Ermita TAGUIG: Fort 32nd St. cor. 5th Ave. Fort Bonifacio www.secretrecipe.com.ph

SECRET RECIPE

Phil Aussie Bahrain Canadian HKong Japan Saudi Spore Swiss UK US EMU dollar euro one unit of currency peso dollar dinar dollar dollar yen rial dollar franc pound Philippines 1.0000 0.0229 0.0089 0.0234 0.1833 1.8580 0.0886 0.0296 0.0227 0.0150 0.0236 0.0189 Australia 43.6462 1.0000 0.3888 1.0231 8.0000 81.0966 3.8680 1.2924 0.9902 0.6532 1.0315 0.8247 112.2474 2.5718 1.0000 2.6312 20.5740 208.5608 9.9475 3.3238 2.5466 1.6800 2.6527 2.1209 Bahrain 42.6605 0.9774 0.3801 1.0000 7.8193 79.2651 3.7806 1.2632 0.9678 0.6385 1.0082 0.8061 Canada 5.4558 0.1250 0.0486 0.1279 1.0000 10.1371 0.4835 0.1616 0.1238 0.0817 0.1289 0.1031 Hong Kong Japan 0.5382 0.0123 0.0048 0.0126 0.0986 1.0000 0.0477 0.0159 0.0122 0.0081 0.0127 0.0102 Saudi Arabia 11.2840 0.2585 0.1005 0.2645 2.0683 20.9662 1.0000 0.3341 0.2560 0.1689 0.2667 0.2132 33.7710 0.7737 0.3009 0.7916 6.1899 62.7480 2.9928 1.0000 0.7662 0.5054 0.7981 0.6381 Singapore Switzerland 44.0781 1.0099 0.3927 1.0332 8.0791 81.8991 3.9062 1.3052 1.0000 0.6597 1.0417 0.8329 United Kingdom 66.8154 1.5308 0.5953 1.5662 12.2467 124.1460 5.9213 1.9785 1.5158 1.0000 1.5790 1.2625 42.3150 0.9695 0.3770 0.9919 7.7560 78.6232 3.7500 1.2530 0.9600 0.6333 1.0000 0.7996 United States EMU 52.9234 1.2126 0.4715 1.2406 9.7004 98.3341 4.6901 1.5671 1.2007 0.7921 1.2507 1.0000
source of raw data: Bangko Sentral ng Pilipinas

Tel. No: 361-733/Telefax: 3672922 Cell #: 0918-6961736 E-mail: holsum@smartbro.net jamesbonvivant@yahoo.com

MONEY QUOTATIONS
FLOYDS FAMOUS BARBEQUE EXCHANGE RATES
NEW YORK-one US$ expressed in respective unit of foreign currency EMU 1.2581/8 1.2581/8 United Kingdom 1.5872/7 1.5872/7 Canada 0.9851/5 0.9851/5 Switzerland 0.9541/4 0.9541/4 Japan 78.24/2 78.24/2 India 55.52/5 55.52/5 Mexico 13.1895/2 13.1895/2 Denmark 5.9199/4 5.9199/4 5.7951/3 5.7951/3 Norway Sweden 06.6179/ 06.6179/ Singapore 1.2462/ 1.2462/ Australia 1.0336/ 1.0336/ New Zealand 0.8037/ 0.8037/ Hong Kong 7.7554/ 7.7554/ S. Africa 08.3888/ 08.3888/ Hungary 225.51/ 225.51/ 4.0095/ 4.0095/ Israel Iceland 121.72/ 121.72/ Czech Koruna 19.746/ 19.746/ LONDON - one pound sterling expressed in respective unit of foreign currency at 1637 GMT 1.5865 1.5868 US 1.5148 1.5158 Swiss Franc Japan 124.3200 124.42 9.1925 9.2077 Norway 1.2609 1.2616 EURO 1.5649 1.5657 Canada 9.3960 9.3999 Denmark 10.4960 10.5291 Sweden JAPAN-in per unit of foreign currency UK 0.8038 0.8042 Switzerland 1.2180 1.2188

FRIDAY, AUGUST 31, 2012

source: REUTERS

G / F A y a l a Te c h n o H u b , Boardwalk St. Brgy. San Rafael, Mandurriao, Iloilo City

BANAPPLE THE JAVA MAN

4/F RCBC Plaza, Makati City 3/L The Enterprise Center, Makati City LGF, Sm Megamall, Bldg. A, EDSA Mandaluyong City Aguirre Ave., BF Homes Sudb., Paraaque City Excel Badminton Center, Lazatin Blvd. San Fernando, Pampanga 7/F St. Lukes Medical School Bldg. QC Northeast Square, 47 Connecticut St., Northeast Greenhills, San Juan City Tel. No.: 477 2675

GERALD (Boulangerie)
2305 Chino Roces Avenue ext. Ecoplaza Bldg. ( mez zanine floor), Makati Tel. 659-7854 Website: www.gerald.ph

SANDWICHESSE
For extraordinary sauce salads & sandwiches visit Banapples Little brother just next to the original Banapple in Katipunan 225 Katipunan Avenue, Brgy. Milagrosa, Quezon City Tel. No.:440 3677

Ave n u e Co m p l e x G l i ce r i o Pison Avenue, Brgy. San Rafael, Mandurriao, Iloilo City

BOURBON STREET

MARRIOTT CAF
No. 10 Newport Blvd., Newport City Complex, Pasay City Tel.:(02)988 9999 Fax:(02)836 9998 Website: www.marriott.com/ mnlap

MARIOS
Marios Quezon City: 191 Tomas Morato Ave cor. Sct. Gandia, Q.C. 372-0360 415-3887 376-6210 Fax 372-0352 Marios Baguio City: Upper Session Rd, Baguio City (074) 442-4241 Fax (074) 442-5445 We Cater. For those special occassions when you want the best, call Marios for catering.

TOKYO CAF OUTLETS

G/F South Wing Side, Main Mall Bldg., SM Mall of Asia SM The Block, North Ave. cor. EDSA, QC Unit 120-121 Mckinley Hills Piazza, Upper Mckinley Road, Mckinley Town Center, Fort Bonifacio, Taguig City Upper Ground Level, Robinsons Cybergate Plaza, EDSA cor. Pioneer St., Mandaluyong City Unit 323B, 3/F Bridgeway, SM Megamall

KRISPY KREME
www.krispykreme.com.ph Greenhills SM Mall of Asia SM Megamall The Fort, Bonifacio High Street G4, Glorietta Robinsons Manila Festival Supermall Alabang Town Center Robinsons Galleria Jaka building, Ayala Avenue Valero St., Makati City Trinoma Gateway SM North Edsa Eastwood City

CAFE YSABEL
455 P. Guevarra St., San Juan City E-mail: cyreservations@cacschef. com www.cafeysabel.com

COFFEE BREAK
ILOILO: CB-ATRIUM 2/L the Atri um Mall, Gen. Luna St. CB-Jaro Coffeebreak Bldg., Lopez Jaena St., Jaro CB-Metro Coffeebreak Bldg., Gen. Luna St. CB-Avenue, The Avenue Complex, Gilcerio Pison Avenue., San Rafael, Mandurriao CB-Nellys Garden E-Lopez St., Jaro CB-Valeria Valeria St. CB-ICVB G/L Terminal Bldg., New Iloilo Airport of Intl Standard, Cabatuan CB-Pre Departure 3/L Terminal Bldg., New Iloilo Airport of Intl Standard CB-168 Plaza Mall JM Basa St. Iloilo City., Gen. Luna St., Lopez Jaena St. CB-

LE COEUR DE FRANCE
ORTIGAS: Robinsons Galleria SM Megamall MANDALUYONG : Shangri-La Plaza Mall SOUTH AREA: SM Southmall Festival Mall MAKATI: San Antonio, Forbes Park Rustans Makati Glorietta

Tomas Morato, Quezon City Greenhills, San Juan City The Podium, Mandaluyong City Main Mall, SM Mall of Asia SM City The Block, Quezon City Rustans Makati City Corin thian Hills, Quezon City SM City, Pampanga Greenbelt 5, Ayala Center

GMA& LUZON BRANCHES: lsetann, Recto Puregold, Blumen tritt Puregold, San Andres Pure gold, Harrison Plaza Shopwise, Commonwealth Rustans, Katipu nan Shopwise, Libis Waltermart, Muoz SM Mall of Asia, Pasay Jackman Emporium, Caloocan Greenhills Shopping Center, San Juan Robinsons Pioneer Rustans Shangri-la Cherr y Foodarama, Shaw Blvd. Fun Ranch, Pasig Ever Gotesco, Ortigas Pioneer Supermarket Market! Market! SM Southmall Shopwise, Alabang Puregold San Pablo SM Sta. Rosa South Supermarket, Sta. Rosa Robinsons Lipa SM City Batangas SM City Lipa - SM Hypermarket Valenzuela Cherry Foodarama, Antipolo SM Cit y Dasmarias Candelaria, Quezon SM City Lucena Calapan, Oriental Mindoro Magsaysay Street, Olon gapo SM Naga VISAYAS BRANCHES: Loupes East, Bacolod City Robinsons Bacolod SM Bacolod Fooda Con solacion, Cebu Fooda Mango, Cebu Gaisano Capital Tisa, Cebu Gaisano Country Mall, Cebu Gaisano Fiesta Mall, Cebu Gaisano Grand Mactan, Cebu Gaisano Island Mall Mactan, Cebu Gaisano South Colon, Cebu Metro Gaisano Ayala, Cebu SM Cebu 2/F SM Cebu Terminal Silliman University Dumaguete City MINDANAO BRANCHES: NCCC Centerpoint, Davao City NCCC Main, Davao City NCCC Mall, Davao City MC Square, Digos City Central Warehouse, Kidapawan City KMCC, Kidapawan City San Jose Rd, Zamboanga City Yubenco Starmall, Zamboanga City

PIZZA PEDRICOS

India per 10 0.8180 0.8880 Forwards & Deposits (Singapore) Japan per 100 0.1750 0.1900 One month 0.2000 0.3700 Korea per 100 5.3350 5.4410 Two months 0.2700 0.4500 Philippines 1.4850 1.5550 Three months 0.3700 0.5500 Austria per 100 1.3700 -1.4000 Six months 0.1250 0.3750 Belgium per 100 1.1800 -1.2000 Nine months 0.5500 0.7500 Brunei 11.4800 -11.5000 One year 0.2500 0.5000 Singapore 5.3350 5.4410 Switzerland 6.9970 7.0970 SIBOR RATE-Singapore Interbank Offered Taiwan per 100 23.3000 25.3000 Rates charged in US$ for Asian Dollar loans Thailand per 100 22.5000 24.5000 Rates fixed at 11:00 a.m. Singapore time United Kingdom 15.8800 -16.1000 One month 0.2363 7.7240 7.7940 United States Two months 0.3313 Japan T/C per 100 7.1040 7.1690 0.4275 Three months UK T/C 15.8800 16.0730 Six months 0.7113 USA T/C 7.7340 7.7860 Nine months 0.8725 Netherland 5.8600 -5.0000 One year 1.0350 New Zealand 0.9660 1.1660 1.3770 1.4470 Norway LIBOR RATE -London Interbank Offered Spain per 100 1.0500 -1.0000 Rates charged in US$ for Eurodollar loans Rates fixed at 11:00 a.m. London time MONEY RATES 0.2305 One Month Prime rate-charged by large Two Months 0.3275 comml banks to their best corp. borrowers; Three months 0.4183 Broker Loan Rate-charged to broker on stock Four months 0.5249 exchange collaterals; Federal Funds-reserves Five months 0.6164 traded among comml banks for overnight use Six months 0.7077 Prime rate 3.2500 Nine months 0.8678 Discount 0.7500 One year 1.0320 Broker Loan Rate 2.0000 Federal Funds Rate 0.2500 Treasury Bills 90 days 180 days 360 days * * * GOLD BULLION * * * WORLD BULLION-in US$ per troy ounce, rupees/10 gms, won/gram Ldn morning fix 655.36 Ldn aftrn fix 165.00 London close 139.00 9.69 New York CLSD Zurich CLSD Bombay 24 carat 7,144.00 7,159.00 Seoul 57,980.00 57,980.00

5.0100 5.0700 5.2100

5.0000 5.0600 5.2000

SINGAPORE-in S$ per unit of foreign currency EURODOLLAR DEP (New York) 1.2470 1.2480 US One month 0.2100 0.3100 1.9784 1.9803 UK Two months 0.2300 0.3600 1.2865 1.2891 Australia Three months 0.2700 0.4300 Per 100 Four months 0.3400 0.5100 Hong Kong 0.1608 0.1609 0.3900 0.6200 Five months Japan 1.5906 1.5922 Six months 0.4800 0.6300 HONG KONG Nine months 0.5800 0.7500 International market (99.5 fine US$ per oz) BANK NOTES One year 0.6900 0.9500 0.00 0.00 Close (Hong Kong)-in HK$ per unit of foreign currency; TT-telegraphic transfer MONEY RATES (London) US Gold Prices ($/Troy ounce) Buying Selling Euro$ Depo Engelhard gold (bullion) 1651.95 Australia 6.8110 6.9060 One month 0.1700 0.2500 Engelhard gold (fabricated) 1775.85 Canada 7.8510 7.9380 Three months 0.4200 0.5000 Handy & Harman (base price) 1648.00 France 1.7500 -2.0000 Six months 0.6700 0.7500 Handy & Harman (fabricated) 1780.30 Germany 7.1100 -7.2000 One year 1.0700 1.1500 Krugerrand 1649.60 8.90

If you would like to be listed in this directory, please contact the Circulation Department at 535-9901, e-mail: circ@bworld.com.ph

EDITOR FRANCISCO P. BALTAZAR Monday, September 3, 2012

World Markets
LONDON-BRENT
(OCTOBER CONTRACT)
120 112 104 96 88 80

S2/5

ASIA-DUBAI
(AUGUST CONTRACT)
120 112 104 96 88 80

NEW YORK-WTI
(OCTOBER CONTRACT)
120 112 104 96 88 80

Sept. seen to bring volume

NEW YORK Marking the end of the summer doldrums, Wall Street is likely to kick off September with heavy trading volume while it hopes that the European Central Bank will hint at further stimulus measures to boost the global economy. On Friday, US Federal Reserve Chairman Ben Bernanke said that the central bank stands ready to bolster the economy if necessary, although he stopped short of giving an explicit signal of more monetary easing. US stocks rallied after Mr. Bernankes speech to an annual conference of central bankers in Jackson Hole, Wyoming, with major indexes gaining more than 1% in the late morning session. At the end of the day the Dow Jones industrial average was up 0.7%, while the Standard & Poors 500 index was up 0.51% and the Nasdaq composite index up 0.6%. This (Bernanke speech) was in line with what we were expecting. He left the door open but didnt announce anything explicit. He doesnt intend to front-run his own FOMC (policy) meeting, said Liz Ann Sonders, New York-based chief investment strategist at Charles Schwab Corp., which has $1.6 trillion in client assets. Investors are now awaiting comments from European Central Bank (ECB) President Mario Draghi after the banks meeting on Thursday. Many investors will look to the ECB meeting to glean strong
DOW JONES 30 days to 31 AUGUST 2012
13300

NASDAQ COMPOSITE 30 days to 31 AUGUST 2012

3090
5895

FTSE 30 days to 31 AUGUST 2012

13160

3040

5812

13020

2990

5729

J s DOLLARS PER BBL J 30 days to August 31

Aug 27 28 29 30 31 $/bbl 111.37 110.03 109.50 110.25 110.35

J s DOLLARS PER BBL J 30 days to August 31

Aug 27 28 29 30 31 $/bbl 95.47 96.33 95.49 94.62 96.47

J s DOLLARS PER BBL J 30 days to August 31

Aug 27 28 29 30 31 $/bbl 112.26 112.58 112.54 112.65 114.57

12880

2940

5646

12740

2890

5563

12600

2840

5480

Average (Aug 1-31) Average (Jul 2-31)

Source: Reuters

$108.56 $99.07

Average (Aug 1-31) Average (Jul 2-31)

$94.16 $87.93

Average (Aug 1-31) Average (Jul 2-31)

$112.61 $102.72

OPEN: 13,002.72 CLOSE: 13,090.84 HIGH: 13,151.87 NET: 90.13 LOW: 13,002.64 PREV: 13,000.71

OPEN: 3069.64 CLOSE: 3066.96 HIGH: 3078.52 NET: 18.25 LOW: 3040.59 PREV: 3048.71

OPEN: 5719.45 CLOSE: 5711.48 HIGH: 5763.77 NET: -7.97 LOW: 5707.99 PREV: 5719.45

Oil rises 9% in August, tops $114 after Fed news

NEW YORK Oil rose above $114 a barrel in volatile trading on Friday, taking gains in August above 9%, after US Federal Reserve Chairman Ben Bernanke stopped short of signaling extra monetary easing was imminent but kept the door open for action. Crude initially pulled back after Mr. Bernankes address at a central bankers symposium in Jackson Hole, Wyoming. As traders parsed the details, prices were quick to move higher, supported by stronger-than-expected US economic data. Figures released on Friday showed US factory orders posted the biggest rise in 12 months in July, jumping 2.8%, while the Thomson Reuters/University of Michigan survey of consumer sentiment showed the index rising to 74.3 in August from 73.6 in a preliminary August report. There was no announcement about if more stimulus was coming immediately, but he (Bernanke) said the Fed was ready to act if necessary so that was supportive, said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut. Along with the factory orders and consumer sentiment data, the (market) longs are in control. Brent crude settled up $1.92 at $114.57 a barrel, having earlier reached a session peak of $114.78. Brent gained 9.2% in August, the biggest monthly percentage rise since prices jumped by 10.5% in February, and added to a 7% rally in July. US crude rose $1.85 to settle at $96.47, having earlier risen briefly above the 200-day moving average at $96.68, a key technical resistance level closely watched by traders. US crude gained 9.6% in August, the biggest percentage gain since October 2011. September US heating oil , the benchmark distillate futures contract, expired at $3.1696 a gallon, up 4.51 cents on the day and up 11.5% in August, biggest monthly percentage gain since September 2010. September RBOB gasoline rose 2.30 cents to go off the board at $3.1056 a gallon, up 6.5% in August, following a 6.8% rise in July. Money managers raised their net long US crude futures and options positions in the week to Aug. 28, the Commodity Futures Trading Commission said on Friday. Quantitative easing is viewed by many investors as likely to boost the price of commodities and other hard assets as it tends to depress the value of the dollar. The euro rose against the dollar on Friday, boosted by signs of progress toward a deal to tackle the euro zone debt crisis. Trading volume was relatively buoyant ahead of a long weekend in the US, with Brent turnover 6% over the 30-day average. US crude volume lagged its 30-day average by 5% at 3 p.m. in New York. US markets will be closed on Monday for the US Labor Day holiday. Crude prices were further supported by reports Germany and Italy remain opposed to a release of emergency consumer oil stocks, which created further uncertainty about the timing of any possible release as sanctions on Iranian exports have tightened the market and boosted prices. Since mid-June, Brent prices have risen by more than 25%, from below $90 a barrel to near $115 now. Meanwhile, the Department of Energy (DOE) loaned 1 million barrels of light sweet crude oil to Marathon Petroleum Corp. from the US Strategic Petroleum Reserve due to short-term supply problems created by Hurricane Isaac. This emergency loan from the Strategic Petroleum Reserve will help ensure Marathons refining operations have the crude oil they need to continue operating, Energy Secretary Steven Chu said. The DOE added it continues to keep all options on the table to address additional or sustained oil supply issues. Overall, however, the Gulf of Mexico oil and gas industry has so far reported little major stormrelated damage to infrastructure although one Louisiana refinery had flooding. Energy production is expected to start ramping up again over the weekend. Reuters

DJ EURO STOXX 30 days to 31 AUGUST 2012

2500

225-NIKKEI 30 days to 31 AUGUST 2012

9200

KOSPI 30 days to 31 AUGUST 2012

1,970

2430

9020

1,928

2360

8840

1,886

2290

8660

1,844

2220

8480

1,802

2150

8300

1,760

OPEN: 2402.81 CLOSE: 2440.71 HIGH: 2446.7 NET: 36.91 LOW: 2398.72 PREV: 2403.8

OPEN: 8891.75 CLOSE: 8839.91 HIGH: 8933.99 NET: -143.87 LOW: 8839.91 PREV: 8983.78

OPEN: 1897.16 CLOSE: 1905.12 HIGH: 1912.24 NET: -1.26 LOW: 1896.84 PREV: 1906.38

clues on what to expect from the Federal Open Market Committees (FOMC) own policy meeting the following week on Sept. 12-13. The all-important US nonfarm payrolls report is due on Friday. With Mr. Bernanke citing poor improvement in the labor market as part of the reason the US economy faces daunting challenges, Fridays data could be a game changer, according to market participants.

In the euro zone, following the ECB policy meeting on Sept. 6, a German Constitutional Court will rule on the euro zones permanent bailout fund on Sept. 12, which may affect the ECBs bond-buying plans. But there was further uncertainty within the ECB over President Mario Draghis bond-buying plan on Friday after German central bank chief Jens Weidmann reportedly threatened to resign,

piling pressure on Mr. Draghi to mollify opposition. There are growing hopes that Mr. Draghi has overcome Bundesbank opposition to announce a bond-buying plan at next Thursdays ECB meeting, said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co. In a holiday shortened week, with US markets closed on Monday for the Labor Day holiday, Fridays employment report will be the final major economic report to impact the results of the upcoming FOMC meeting. In July, nonfarm payrolls added 163,000 workers, breaking three months of job gains below 100,000 and offering hope for the ailing economy. At the same time, a rise in the unemployment rate to 8.3% kept alive the possibility that the Federal Reserve could provide additional stimulus to the economy. Other economic data next week include the Institute for Supply Management manufacturing survey and construction spending on Tuesday; nonfarm productivity and labor costs on Wednesday; the ADP private-sector employment report and weekly jobless claims on Thursday. For the week, the Dow was down 0.5%, S&P 500 retreated 0.3% and the Nasdaq dipped 0.1%. For the month, the Dow rose 0.6%, S&P 500 gained 2% and the Nasdaq climbed 4.3%, its best monthly performance since February. Reuters

FRIDAY, AUGUST 31, 2012

SPOT PRICES
METAL COPPER Journal, spot, US cts/lb COPPER Merchant,US cts/lb COPPER No.2 Refined, US cts/lb COPPER Bare Bright,del US cts/lb LEAD battery scrap, del US cts/lb LEAD Premium, del US cts/lb LEAD Asarco Premium, del US cts/lb ALUMINUM Premium, del US cts/lb ALUMINUM Alloy, spot, US cts/lb ALU Mixed Clips, del US cts/lb ALU Turnings, del US cts/lb TIN Premium/Grade A, US cts/lb TIN Premium/Low Lead, US cts/lb PALLADIUM free $/troy oz PALLADIUM JMI base, $/troy oz PLATINUM free $/troy oz PLATINUM JMI base $/troy oz KRUGGERAND, fob $/troy oz NICKEL Premium, del US cts/lb ZINC Premium, del US cts/lb IRIDIUM, whs rot, $/troy oz RHODIUM, whs rot, $/troy oz 348.80 355.35 389.85 32.50 7.25 9.88 87.00 61.00 49.00 34.03 41.90 629.75 631.00 1538.80 1537.00 1649.60 22.50 7.00 1040.00 1070.00

FOOD COCOA ICCO Dly (SDR/mt) 1744.4 2652.05 COCOA ICCO $/mt COFFEE ICA comp 79 cts/lb 146.56 172.13 COFFEE mild arabica NY cts/lb COFFEE mild arabica Bmen/Hburg 171.79 COFFEE robusta NY cts/lb 110.5 103.27 COFFEE robusta Le Havre/Marseilles SUGAR world 11 cts/lb SUGAR world 11 weighted ave. SUGAR ISA FOB Daily Price, Carib. port cts/lb 20.21 SUGAR ISA 15-day ave. 20.45 GRAINS (FOB Bangkok basis at every Thursday) FRAGRANT (100%) 1st Class, $/ton 1104 1087 FRAGRANT (100%) 2nd Class, $/ton RICE (5%) White Thai- $/ton 566 RICE (10%) White Thai- $/ton 560 560 RICE (15%) White Thai- $/ton RICE (25%) White Thai- $/ton (Super) 552 0 RICE (35%) White Thai- $/ton (Super) BROKER RICE A-1 Super $/ton 533 RUBBER Standard Msian Rub. 5 (FOB)Mal cts/kilo 803.00 Standard Msian Rub. 20 (FOB)Mal cts/kilo 783.00

Copper ends up after Bernanke keeps stimulus hopes alive

NEW YORK/LONDON Copper rose on Friday to end August with a monthly gain, after Federal Reserve Chairman Ben Bernanke said high unemployment is a grave concern, leaving investors hopeful for another round of government bond buying, or quantitative easing, or QE, from the US central bank. Copper fell to a 10-day low early but recovered with other financial markets after Mr. Bernanke said the Fed would act as needed to strengthen the economy. While he did not say a move was imminent, investors were hopeful. The hope of another round of QE from the Fed is not off the table, its just kicked down the road, so that hope is still alive and acting as a strong bid under the market, said Adam Sarhan, chief executive of Sarhan Capital. COMEX copper for December delivery rose 1.00 cent to settle at $3.4570 per lb, after dealing between $3.4075 and $3.4680. For the month, the contract was up nearly 1%. On the London Metal Exchange (LME), benchmark copper initially fell to a session low of $7,498 a ton, its lowest since Aug. 21, before ending up $40 at $7,610. The metal is still down around 13% from its 2012 peak hit in February at $8,765, and has been trapped in a range this month between $7,300 and $7,700 amid low trading volumes. With the Fed chairmans speech in the rear view mirror, the market will watch whether the European Central Bank (ECB) announces a clear plan to tackle the euro zone debt crisis at its policy meeting this week. Data on Friday showed new orders for US factory goods rose in July by the most since July 2011. This reinforced a steady stream of positive economic data from the US over the past week in areas such as consumer spending, housing, inflation and employment. In Europe, Spain is negotiating with euro zone partners over conditions for aid to bring down its borrowing costs, though it has not made a final decision to request a bailout, three euro zone sources said on Thursday. Reuters

COCONUT
MANILA COPRA(based on 6% moisture) Peso/100kg Buyer Seller 1600/1650 Manila Lag/Qzn/Luc 2250/2300 Coconut Oil-CRUDE 64.50/65.50 COCONUT OIL (PHIL/IDN),$ per ton, CIF Rotterdam 985.00 Aug12/Sep12 Sep12/Oct12 995.00 1005.00 Oct12/Nov12 COCONUT OIL (US)-cents/lb Crude CIF, NY Nola Mar/Apr 47.50 50.00 Crude FOB rail Nola Mar

LONDON METAL EXCHANGE

LME FINAL CLOSING PRICES, US$/MT CASH 3 MOS 1902.00 1799.50 15 MOS 1996.75 1849.50 ALUM. H.G. 1883.75 ALUM. Alloy 1779.50 LEAD TIN ZINC

COPPER 7606.25 7615.00 7622.25 1964.50 1965.00 2007.25 19388.50 19400.00 19390.00 1815.75 1841.00 1896.50 NICKEL 15897.00 15950.00 16162.00

LIFFE COFFEE
New Robusta 10 MT - $/ton High Low Sett Psett
Sept 2038 2044 2016 2018 Nov 2077 2083 2055 2052 Jan 2092 2096 2069 2062 2108 2079 2073 Mar 2102

LIFFE COCOA (Ldn)-10 MT-/ton

High Low Sett Psett Sept 1,686 1,703 1,683 1,665 1,720 1,694 1,684 Dec 1,697 Mar 1,688 1,710 1,684 1,671 1,714 1,691 1,675 May 1,694

Gold soars 2% to a five-month high on Fed stimulus

NEW YORK Gold surged 2% in heavy trading on Friday to a five-month high, and looked set to resume its years-long rally after Federal Reserve Chairman Ben Bernankes key speech raised hopes of a new round of monetary stimulus for the US economy. After trading in a range for four months, gold raced toward the $1,700 an ounce level last seen in March. It looked poised to test this years high on improved investor sentiment and technical buying. Gold posted its biggest daily gain in two months, sharply outperforming US equities which edged up in late trade. The metal posted a 4.5% gain in August, its third straight monthly rise and its biggest since January. In a speech to central bankers in Jackson Hole, Wyoming, Mr. Bernanke spoke of grave concern about a stagnant labor market, and said the economy faced daunting challenges. He stopped short of saying the Fed was ready to buy government bonds in another round of quantitative easing, or QE. The main catalyst for the reversal in gold has been that Bernanke used the words grave concern and the interpretation is that theres going to be more QE if hes using such a dire projection for the economy, said Jeffrey Sica, chief investment officer of SICA Wealth Management, which has over $1 billion in assets. Gold fell immediately following the release of Bernankes speech, then quickly rebounded $45 per ounce, or almost 3% from its session low, as investors digested his comments and concluded they were stimulus-friendly. Spot gold rose 1.8% at $1,685.89 an ounce by 3:15 p.m. EDT (1915 GMT) for its biggest one-day gain in two months. It rebounded from a low of $1,646.73 an ounce. It climbed to a session high of $1,691.80 an ounce, the highest since March 27. US COMEX gold futures for December delivery settled up $30.50 an ounce at $1,687.60, with the highest trading volume in a month, preliminary Reuters data showed. Year to date, gold is up 8% still off the 15% gain it notched in January when the Fed indicated it might unveil new monetary stimulus and said it would keep interest rates near zero until at least late 2014. Since then, Mr. Bernankes failure to hint at more easing had prompted gold investors to reduce bullish bets and threatened to end the metals 11 consecutive years of bull rally. Silver rose 3.5% to $31.46 an ounce. Other analysts contend the Fed may stand pat due to data this week showing improved consumer confidence, consumer spending and the Feds Beige Book report showing a pickup in retail activity. In the absence of truly dire US economic indicators, it is unlikely that the Fed will launch any new easing before the US federal election, said Frank McGhee, head precious metals trader of Integrated Brokerage Services LLC. Other traders said the Fed could wait for next weeks nonfarm payroll report before reaching a decision on stimulus at its policy meeting on Sept. 12-13. In the physical gold market, August sales of the US Mints American Eagle gold coins are on track to be the weakest for the month since 2007. Coin dealers, however, said business has picked up late in the month. Among platinum group metals, platinum was up 2% at $1,530.99 an ounce, while palladium rose 1.8% at $625.75 an ounce. Reuters
Source: Reuters
THURSDAY, AUGUST 30, 2012

US COMMODITY FUTURES
PLATINUM (OCTOBER CONTRACT)
30 days to AUGUST 30,2012
1,560
1,677

GOLD (SEPTEMBER CONTRACT)

30 days to AUGUST 30,2012

SILVER (SEPTEMBER CONTRACT)

30 days to AUGUST 30,2012
3,115 351

COPPER (SEPTEMBER CONTRACT)

30 days to AUGUST 30,2012
188

COFFEE (SEPTEMBER CONTRACT)

30 days to AUGUST 30,2012

COCOA (SEPTEMBER CONTRACT)

30 days to AUGUST 30,2012
2650

SUGAR (OCTOBER CONTRACT)

30 days to AUGUST 30,2012
24.05

WHEAT (SEPTEMBER CONTRACT)

30 days to AUGUST 30,2012
945

1,523

1,656

3,025

346

182

2556

23.10

922

1,486

1,635

2,935

342

176

2462
`

22.15

899

1,449

1,614

2,845

337

170

2368

21.20

876

1,412

1,593

2,755

333

164

2274

20.25

853

1,375

1,572

2,665

328

158

2180

19.30

830

Dollars per ounce

OPEN: 1518.60 CLOSE: 1503.70 HIGH: 1528.80 NET: -16.60 LOW: 1501.70 PREV: 1520.30

Dollars per ounce

OPEN: 1655.40 CLOSE: 1653.50 HIGH: 1662.00 NET: -6.00 LOW: 1650.70 PREV: 1659.50

Dollars per ounce

OPEN: 3067.50 CLOSE: 3036.70 HIGH: 3089.00 NET: -47.00 LOW: 3019.50 PREV: 3083.70

Dollars per ounce

OPEN: 343.55 CLOSE: 344.05 HIGH: 348.85 NET: -0.20 LOW: 342.55 PREV: 344.25

US cents per pound

OPEN 165.50 CLOSE: 163.00 HIGH: 167.50 NET: -3.40 LOW: 162.50 PREV: 166.40

US cents per pound

OPEN: 2611.00 CLOSE: 2642.00 HIGH: 2671.00 NET: 23.00 LOW: 2610.00 PREV: 2619.00

US cents per pound

OPEN: 19.75 CLOSE: 19.75 HIGH: 20.10 NET: -0.01 LOW: 19.67 PREV: 19.76

Dollars per bushel

OPEN: 885.00 CLOSE: 883.50 HIGH 896.75 NET: -2.00 LOW: 878.50 PREV: 885.50

6/S2

World Business

EDITOR FRANCISCO P. BALTAZAR Monday, September 3, 2012

Supercar joins world elite

Slovenian garage hits the road in style
Using the Slovak K1-Attack racer as a basis, he created a supercar equipped with an Audi V8 FSI engine with 450 horse power, that weighs approximately one ton and can accelerate from zero to 100 kilometers per hour (62 miles per hour) in 3.7 seconds. And the 300,000 ($375,000) car listed as one of the highlights at the Monaco show has already earned a shining review from the renowned BBC auto show Top Gear, which described it as massively fast, agile, and quite civilized. The newcomer from Slovenia... looks very much at home next to the established exotica from Alfa Romeo, Bugatti, Ferrari, Lamborghini, it added. A supercar a fast, powerful or luxurious car usually costs between 500,000 and 600,000 but Mr. Tusek consciously kept the price down to sell his first models more easily, to enter the market and to get his name known. Everyone can buy a Ferrari. Brands like Ferrari have developed strongly, increased their production and market share. That makes it less interesting for extremely wealthy customers. They do own a Ferrari but it is no longer a status symbol, everyone can buy it, he told AFP. Tushek on the other hand the company has an added h in its name to make it easier for nonSlovenians to pronounce will produce only a limited number of each model. So far, Mr. Tusek has built three cars and sold two of them, but his long-term plans are to speed up production and deliver 10 cars per year. Waiting time should not exceed six months, he says. For that, he will hire 10-15 people, mostly engineers and friends who already helped him produce the first cars, working during their free time while keeping steady jobs. For Mr. Tusek too, retreating to the garage has always been a means to escape daily stress. I did not start this for the money... I started it with the idea of making the car I would like to drive, he said. From his early childhood, he raced: first with go-carts, then motorbikes and finally cars, winning various regional races. Now still, he takes his creations very seriously, testing them on the road so that nothing will surprise the future owners. PTUJ, Slovenia Out of a little garage in northeastern Slovenia, comes a new supercar and it is already joining the ranks of the worlds elite, alongside Lamborghini and Ferrari. Only six months after presenting his first prototype at Monacos Top Marques event, Aljosa Tusek, 46, has been invited to Londons exclusive Salon Prive car show which runs on Wednesday through Friday, and customers from all over the world keep calling him. Far from a sleek assembly line, however, his Renovatio T500 saw the light of day in a friends garage. A former racer, Mr. Tusek designed it in his spare time, building it with the help of about 10 fellow car enthusiasts over several years, while balancing a full-time job as a distributor for an international tire company. A moment comes when you decide to stop racing, but you do not want to quit it. Since I could not find a car that would satisfy me the way racing did, I decided to make it myself, Mr. Tusek told AFP while showing off his creation in a modest hangar in Ptuj, in northeastern Slovenia. The global crisis does not worry him. This is the best time to start with a business like this. There will be a way out of recession, because there has to be, and when that happens we will already be a strong company. Still, if he had the choice, he would live in Monaco, Switzerland or a major capital like Paris or London. There you can see that for some there is no crisis at all, there are so many wealthy people, Mr. Tusek said, and admitted to targeting British and French millionaires, to whom he hopes to sell at least three more cars by the end of the year. In the meantime, he is preparing a new supercar, the Forego T700, which will be presented next year and should exceed the Renovatio both in terms of power and price, at twice the cost. Im not thinking about the price of the product, Im thinking about the people who already have many cars, says Mr. Tusek. We want our cars to be excellent, so that those who have fuel in their veins, like cars and are lucky enough to have sufficient money, see that we offer something different. AFP

Nissan Sentra redesigned as Altima look-alike

DETROIT When the Nissan Motor Co. compact sedan Sentra rolls into US showrooms in the fourth quarter, consumers may notice that it looks a lot like its bigger stable mate, the recently introduced Altima. Nissan is pinning expectations of increased Sentra sales for the all-new Sentra in part on the more aerodynamic design and resemblance to the better-selling Altima midsize sedan. The 2013 Nissan Sentra is the most revolutionary design in the nameplates 30-year history, said Al Castignetti, vice-president and general manager of the Nissan brand in North America. Nissan has eliminated 150 pounds and increased the small cars aerodynamics to help boost its fuel economy to 39 miles per gallon (mpg.) on the highway and 30 mpg. in city driving. Sentras combined fuel economy rating of 34 mpg. is a 13% improvement over the current model. The 2013 Sentra will have a 1.8-liter engine, smaller than the current models two-liter engine. Nissans compact Sentra has a long way to go if it is going to catch up with the leaders of the compact sedan segment of the US auto industry. Through July, its sales put it ninth in the segment. No. 1 in the compact sedan segment is the Honda Motor Co. Civic, with sales of 187,586, almost three times the Sentra. Sales of the Sentra are down 11% so far this year, at 65,872. This lackluster performance has allowed the Mazda Motor Corp.s Mazda 3 to overtake it, at 68,554 sold. Jessica Caldwell, Edmunds. com senior director of industry analysis, said that the Sentra once was among the top compact sedans on the market, but has been passed by better offerings from competitors. The compact car market has grown in size and opportunity. More people are looking at it because there are better cars than there were before. The new Sentra is a chance for Nissan to take back its place among the more prominent compact cars, she said. Competition in the compact sedan segment is keen. The top five entrants all sold well over 100,000 vehicles through July. In order, behind the Honda Civic were the Toyota Motor Corp.s Corolla, the Ford Motor Co.s Focus, the General Motors Co.s Chevrolet Cruze, and the Hyundai Motor Co.s Elantra. And the Toyota hybrid entry, the Prius, which is the size of a compact sedan, has sold just over 100,000. Nissan has not announced pricing for the new Sentra. Brian Brockman, a company spokesman, said the 2013 Sentras prices will not change much from the current offering. The base model of the 2012 Sentra goes for $17,210, and the most-popular offering, the 2.0-liter SV, sells for $19,140. Those prices include destination charges. The Sentra is the third of five new vehicles that Nissan is introducing in the US market in a 15-month period. Its top-selling vehicle, the Altima midsize sedan, recently rolled out to US dealers and the Pathfinder crossover SUV will be available nationwide in the fall. Next year, Nissan will bring out replacements for the Rogue crossover and the Versa subcompact hatchback. With the new vehicles, Nissan hopes to increase its US market share to 10% by 2016 or before, up from its current market share of 8%. Nissan is the no. 7 automaker in the US. Reuters

Samsung wins over Apple in Japan patent case

TOKYO A Tokyo court ruled on Friday that Samsung Electronics mobile devices did not violate an Apple, Inc. patent involved in synching mobile devices and computers, awarding the South Korean maker a victory a week after it lost a bruising landmark patent case in the United States. In rejecting Apples suit, Tokyo District Court Judge Tamotsu Shoji said Samsungs products did not infringe on the US firms technological scope. A US federal jury found last week that Apple did not infringe on any of Samsung s patents, while the South Korean firm had copied key features of iPhone. The same jury awarded Apple $1.05 billion in damages and it is now seeking speedy bans on the sale of eight Samsung phones in the US market. We welcome the courts decision, which confirmed our longheld position that our products do not infringe Apples intellectual property, Samsung said in a statement following the verdict from the Tokyo court. A representative for Apple in Japan declined to comment. A spokesman for NTT Docomo, Inc. declined to comment, while a KDDI Corp. spokeswoman said she did not see any major impact from the decision. Both Japanese mobile carriers sell the popular Samsung Galaxy series. Apple targets more Samsung products Seeking to capitalize on a major legal victory over its rival Samsung Electronics Ltd., Apple, Inc. has asked a federal court in a separate case to find that four additional Samsung products, including the Galaxy S III, infringe Apples patents. In February, Apple alleged that at least 17 Samsung products infringe its patents. In a court filing made in San Jose federal court on Friday, Apple added four more products to the list of allegedly infringing products that have been released beginning in August 2011 and continuing through this month. Apple won a major victory over Samsung last Friday in a separate case when a jury found that the South Korean company had copied critical features of the hugely popular iPhone and iPad and awarded the US company $1.05 billion in damages. Samsung representatives did not immediately respond to requests for comment. Reuters

Sharp to get $1.92B from main creditors

TOKYO Loss-making electronics company Sharp Corp. will receive an additional 150 billion ($1.92 billion) from Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi UFJ, helping it stay afloat through the end of the month, the Nikkei business daily reported. The Japanese LCD TV panel maker, which is weighed down by aggressive competition and sluggish TV demand, is also scrambling for money to refinance billions of dollars of debts maturing in the near term. Sharps two main creditors will lend 75 billion each, fully backed by property and securities held by Sharp, the paper said. The companys stock declined the most in almost a month on Friday on uncertainty over a tie-up with Hon Hai Precision Industry Co. Ltd. after the abrupt departure of the Taiwanese companys chairman from Japan. Century-old Sharp, which also makes screens for Apple, Inc.s products, is discussing a partnership with Hon Hai that would give the Taiwanese company a 9.9% stake and more muscle to cut costs. Ratings agency Standard & Poor downgraded Sharps debt to junk and said it was keeping a watch for possible further downgrade. Sharp is in a hurry to flesh out new restructuring measures this month to attract more financial assistance from its lenders, life insurers and trust banks, the business daily reported. Reuters

US Airways, AMR evaluate likely merger

NEW YORK American Airlines parent AMR Corp. and US Airways Group, Inc. have signed a non-disclosure agreement as they evaluate a potential merger that would create an airline that rivals leader United Continental Holdings, Inc. in scope. The two carriers said on Friday they agreed to share confidential information, work with bankrupt AMRs creditors committee, and not talk to third parties about any terms of their possible combination. American has also signed nondisclosure agreements with other parties, according to a memo the company sent to managers on Friday. It did not identify the other parties, but Bloomberg and the Associated Press on Friday reported that British Airways parent International Airlines Group (IAG) also signed a non-disclosure accord with American. Representatives of IAG could not immediately be reached for comment. IAG, a member of the oneworld global alliance of which American is a part, did not immediately respond to a request for comment. The company had said earlier this month that it may consider taking a stake in American. Many analysts consider US Airways to be the leading contender for AMR, which filed for Chapter 11 bankruptcy protection in November. Combined, US Airways and AMR had $37 billion in revenue in 2011, about equal with United Continental, the worlds biggest carrier. American Airlines initially said it would prefer to emerge from bankruptcy on a standalone basis, but has grudgingly responded to pressure from creditors to consider a merger as its best option for competing with United Continental and Delta Air Lines, Inc., which are themselves the products of mergers. Reuters

New Facebook low after targets cut

NEW YORK Shares of Facebook, Inc. fell 4.5% to a new low on Friday after brokerages cut their price targets on the companys shares, saying several lock-up expirations over the next year will weigh on the stock. Early investors got the green light to sell Facebook shares for the first time on Aug. 16, sending its stock down 6.3% and prompting price target cuts. About 243 million shares will become available for trading from mid-October, with Nov. 14 being the big day when more than 1.2 billion shares will enter the market. The companys current free float is about 628 million shares. They added that Wall Street sentiment on Facebook is now much worse than advertiser sentiment. The brokerage cut its price target by $10 to $15, 60% below the price at which the companys stock started trading on May 18. Media reports said BofA Merrill Lynch, an underwriter to the IPO, cut its price target by $12 to $23. The companys shares fell to $18.23 on the Nasdaq on Friday amid heavy trading. Reuters

Monday, September 3, 2012

Bulletins

S2/7

CEO conference set

SM Supermalls hosts DepEd exhibit tour
SM Supermalls through the SM Cares Program on Youth and Childrens Welfare and Educational Committee recently hosted DepEds Go! Education Interactive Exhibit Kickoff Tour at The Block in SM North Edsa. This event is in partnership with The Australian Agency for International Development (AusAID), United States Agency for International Development (USAID) and the Philippine Business for Education (PBED). The interactive exhibit themed Go! Education Program informs the public about K to 12s enhanced curriculum and program objectives. Photo shows DepEd Secretary Bro. Armin Luistro (seated, third from right) with partners from SM Supermalls and supporters from the government and private sector.

BRIEFS
Workshops offered
Noted event planner Rita M. Neri will be holding another round of basic and advance workshops on Professional Wedding Coordination on Sept. 26 to 28 (Basic) and on Oct. 1 to 2 (Advance) at R Space Events Venue in Bel Air 2 Village, Makati City. This five day Basic and Advance Level seminars are her follow up to the much-talked about and well-attended Wedding Planning course held in Cebu last March 2012. The upcoming seminars are Ms. Neris answers to the need to continue providing professional wedding coordination courses in the country. The seminar will not only have Ms. Neri as its lead speaker but will also bring together multi-awarded event professionals in their chosen field as resource speakers some of whom are Teddy Manuel for event styling (basic), Ghia Pastoral of Write Impressions for Invitations, Lito Sy of Lito Sy Photography for Photogaphy, Philip Santos of Forsc Ink for Lights and Sounds, Bong Sarre of Threelogy for Videography, Aiza Tabayoyong (formerly of Shangrila) for Banquet Service, Audrey Tanco-Uy of Bizu for Table Set Up, Max Tiu for program emceeing for Chinese weddings and special events, and Zenas Pineda for event styling (advance course). To register, contact Cher Anonas at +632-869 RNEP or e-mail to workshops@ritanerieventplanners.com.

The Management Association of the Philippines (MAP), in partnership with BusinessWorld and Healthway Medical, will hold its 10th MAP International CEO Conference 2012 on Sept. 11, 8 a.m. to 5:30 p.m. at the Rizal Ballroom of Makati Shangri-La. MAP Conference Committee Chair JP Orbeta announced that the MAP CEO International Conference Committee has selected the theme: Transformative Change: The Imperative of Inclusive Growth. The opening keynote address on The Role of Business in Enabling Transformative Change and Inclusive Growth will be delivered by Dr. Jesus P. Estanislao, chair of Institute of Corporate Directors (ICD). The second session will delve on Building Bridges for Transformation Through Education with Angie Vaux (Singapore), senior

director for SAP Education, South East Asia of SAP. Capitalizing on Imperative Change: A Top Priority of Business Leaders will be the topic for the third session with Charles Njendu, senior engagement manager Global Business Services of IBM ASEAN. The fourth session will tackle Tourism: Building the Momentum for Inclusive Growth with Anita Mendiratta (South Africa), managing director of Chachet Consulting. The fifth session will tackle Branding Value and Valuing the Brand with Charlie Scott, founder and creative director of Tangible Pte Ltd. Boy Abunda (Philippines), talent manager of Backroom, Inc., will be the speaker for the sixth session on Transformative Change: The Courage to Lead, the Courage to be Led. Scott Anthony (Singapore), managing director of Innosight

Ventures (Singapore, India, US), will be the closing keynote speaker. He will talk about Innovation as a Catalyst for Transformation and Inclusive Growth. The MAP International CEO Conference is the biggest annual event of the MAP. MAP normally expects over 500 participants who are past, present and future industry leaders in this gathering where insights, experiences and trends are shared by global thought-leaders. MAPs membership in the Asian Association of Management Organizations (AAMO) also enabled MAP to welcome delegates from India, Hong Kong, Malaysia, Singapore, Australia, Japan, Macau, Sri Lanka, and Qatar who attended MAPs past Conferences. For more information, visit www.mapceoconference.ph or contact 751-1149 to 52 or map@globelines.com.ph or mapsecretariat@ gmail.com.

Hotel offers business suite package

RCBC turns over Noli Me Tangere books
Rizal Commercial Banking Corporation (RCBC) recently participated in this years Buhay Rizal Values Campaign of its parent conglomerate, the Yuchengco Group of Companies (YGC). Bank officers and YGC executives visited Muntinlupa National High School (MNHS) and distributed more than 2,000 copies of Rizals masterpiece novel, Noli Me Tangere. Photo shows (from left) National Artist for Literature Dr. Virgilio S. Almario; RCBC First Vice-President for Corporate Communications Joee C. Guilas; MNHS School principal Dr. Estrella Aseron; and Department of EducationMuntinlupa City Division Admin Officer Remedios Cunanan. The Discovery Suites Business Suite Package is offering the best value for money for business executives seeking the ideal premiere residence while on business, or a temporary vacation home while exploring and engaging the city. Experience a two-night stay inclusive of these exceptional advantages: complimentary buffet breakfast; express check-in / check out; complimentary Internet in the room; 10% discount on business center services; and a choice of two from the following perks a lunch buffet from Restaurant 5, Executive Steak Lunch or Dinner at the award-winning 22 Prime, P2,000 Food & Beverage credits, a 90-minute massage voucher valid at Terra Wellness Spa, or a one-way airport transfer. Rates start at P6,500++ for a Junior Serendipity Suite and P 7,500++ for a One Bedroom Serendipity Suite. Strategically situated at the heart of the metropolis, Discovery Suites is a premiere serviced residence in the business and commercial district of Ortigas Center, Pasig City, in the capital of Metro Manila, empowering the business executive with luxurious and impeccably wellappointed suites to retire to after a grueling day of power meetings, at a business hotel designed to impress and close that important deal. Combining function and style is the key behind a delightful stay at Discovery Suites. The newly renovated Serendipity Suites are ideal for the more discerning long stay, corporate and frequent individual traveler who deserves nothing less than the most luxurious amenities, the practicality of a fully equipped kitchen and dining facilities, the attentive service one receives when at home, and the facilities that simply make ones stay complete. The distinguished collection of Junior, One, Two and Three Bedroom suites are located exclusively in four specially dedicated floors. The new interiors present a brighter, contemporary vibe that mirror todays aesthetic standards for todays business traveler. The Serendipity Lounge is a recreation sanctuary, with a wellstocked bar, Billiard table, and nightly lounge performances overlooking a sweeping view of Metro Manilas dynamic skyline. Guests will also be in for a gastronomic treat at the acclaimed 22 Prime Restaurant is known for the range and quality of its steaks. Located on the 22nd floor, the restaurants sophisticated and upscale interiors allow diners to sit back and enjoy a breathtaking view. For inquiries, contact (+632)719-3132/719-8888, email to: rsvn@discovery.com.ph or visit www.discoverysuites.com.

Products presented
Rally for the marine environment with Giordanos Salute the Ocean shirts, available in three different styles: slim fitting shirts for women and comfort tees for men priced at P699 apiece and ball tees priced at P899 each. Support efforts to help clean up the oceans by simply buying a Giordano Salute the Ocean shirt. For every Salute the Ocean tee sold, Giordano will donate part of its sales to the University of the Philippines Marine Biological Society to help fund the 2012 International Coastal Clean-up in Puerto Galera on Sept. 15 and 16, said Beatrice Lim, Giordano business development officer.

3M Philippines backs housekeeping workshop

3M Philippines once again supported Summit Media in bringing the next leg of the Good Housekeeping (GH) Good Ideas Workshop in Manila. Photo shows key representatives and guests who graced the event led by (from left) 3M Philippines Sales Representative Aries Ledesma; Microscotch National Sales Manager Edgardo Marquez; Good Housekeeping Editor-in-Chief Tisha Alvarez-Angluben; 3M Philippines Construction and Home Improvement Markets Division Head Vivian Faustino; GMA Network celebrity mom Jackie Lou Blanco; Clutter Specialist Kat Ong; Interior Designer JP Dela Rosa; and 3M Philippines Marketer for Construction and Home Improvements Division Jermits Rabonza.

MediCard bares rejuvenation process

At the Natural Rejuvenation Center Philippines (NRCP) located at the MediCard Lifestyle Center in Makati City, new age protocols are introduced to allow the body to heal and rejuvenate itself. Patients at the NRCP are advised to undergo five processes: identify the toxins, remove the toxins naturally, energize the body, boost the immune system and balance the hormones, all in an effort to bring the aging body back to life. Aging is a multidimensional process of physical, psychological and social change. It is caused by stress, oxidation, auto-immune diseases and hormones, says Dr. Rosario Austria, an advocate and practitioner of integrative medicine, which combines conventional medicine with alternative approaches to healing and rejuvenation. The need to rejuvenate has become a more pressing necessity nowadays, especially since modernization, unhealthy lifestyles and industrialization have contributed greatly to produce toxins and stressful situations in peoples lives. These, and the increasing exposure to viral, fungal, bacterial and parasitic infections, harm the cells, tissues and organs that induce the earlier onset of the aging process and related diseases. These include lack of energy, allergies, easy predisposition to infections, obesity, hypertension, cancer and even autism and behavioral disorders in children. The average newborn has over 200 different industrial chemicals, pollutants and pesticides in the blood, says Dr. Austria. Thats why she advises everyone to be mindful of what they do to their body. You have to know what you should not put into your body, says Dr. Austria. She adds that it is best to identify the culprits that cause the bodys breakdown and introduce therapies that can help achieve a total approach to regain and maintain health and youthfulness. Among the therapies that Dr. Austria points out is Bio-Feedback Testing, which identifies the bodys toxins. This NASA technology assesses the bodys stress response to heavy metals, chemicals, pesticides, parasites, fungi, hormones, food and nutrients. Another mode that Dr. Austria suggests is detoxification, which helps the body flush out toxins and other stressors through chelation; an intravenous or oral administration of agents that removes heavy metals and harmful chemicals. Chelation involves the use of chelating agents that bind heavy metals together and pulls them out of the body. Dr. Austria says this result in marked improvement of a multitude of symptoms. After the toxins have been removed, the body is then energized using intravenous energy boosters, which are perfect for stressedout individuals, for pre- or postsurgery/chemotherapy care or those who just want an instant perk me up in their energy level. Finally, the NRCPs Bio-Identical Hormone Replacement Therapy uses bio-identical hormones that are derived from plants, have the exact molecular structure and supplicate the exact functions as the hormones made by your body. They are safe, non-invasive and dont increase the risk of blood clots, heart attacks and breast cancer. The Natural Rejuvenation Center Philippines is located at the third floor of the MediCard Lifestyle Center at No. 51 Paseo de Roxas corner Sen. Gil Puyat Avenue in Makati City. For inquiries, call 298-6348.

Promotion bared
Enjoy affordable accommodations at the B Hotel with its discount promo available until Sept. 30. Under its 1+1 promo, B Hotel guests can choose between two options: reserve a room for two consecutive nights or book two rooms for one night for only P6,000 nett for a standard room and P10,000 nett for a penthouse suite. Package includes buffet breakfast for two, a welcome drink, two bottles of mineral water (replenished daily), and the local newspaper. For a no-frills (no breakfast) accommodation, pay only P2,500 nett for a standard room and still enjoy Wi-Fi access, a gift from the hotel, and a 20 percent discount at the hotels all-day dining Prime Caf like all valued guests. The B Hotel is located at 2107 Prime Street, Madrigal Business Park, Ayala Alabang, Muntinlupa City. Daily shuttle service to nearby Alabang commercial districts is provided free to guests. For inquiries, call 828-8181, e-mail to info@thebhotel.com or visit www.thebellevue.com.

Malampaya donates to flood victims in Subic

The Malampaya Foundation, Inc. (MFI) donated relief goods to the victims of the recent flooding in Subic town barangays, reaching a total of 3,200 families affected by the calamity. The support included donations in kind like rice, sardines and noodles. Photo shows Malampaya Phase 2&3 Project Manager Antoine Bliek (second from left); and Shell Philippines Exploration BV Managing Director Sebastian Quiniones (third from left) turning over the relief goods to Subic Mayor Jeffrey Khonghun (third from right); Zambales Governor Hermogenes Ebdane (second from right); and Zambales Vice-Governor Ramon Lacbain (rightmost). Also in photo is Keppel Philippines Marine, Inc. President Mok Kim Whang.

CONSUMER GUIDE

Abbott introduces Similac Mom

Abbott announced the launch of Similac Mom, the most complete nutritional supplement for expectant and breastfeeding mothers, to support both babys optimal development and moms health. Research has shown that undernutrition in expectant and breastfeeding women can lead to serious health consequences for mothers and babies, including anemia, low birth weight and slow cognitive development. Similac Mom provides mothers with all of the essential vitamins and minerals to support the nutrition of a developing baby and themselves, both during and after pregnancy. Complete nutrition during pregnancy and lactation is a key element to good health for both the mother and the baby. Similac Mom complements the nutrition that women and babies would be getting from their diet, said Dr. Jose Rodolfo Dimaano, Regulatory and Medical Director of Abbott Nutrition International Philippines. Similac Mom is now available in retail stores in the Philippines. Similac Mom provides women with a drink that can be consumed as a proteinrich snack. Studies have shown that if consumed throughout the day, Similac Mom may help alleviate nausea and vomiting that often accompany pregnancy. Similac Mom enhances the nutrient value of a well-rounded diet and prenatal vitamins, Similac Mom contains less than 1 gram of fat and only 126 calories per serving to help meet increased nutrient needs during pregnancy and lactation without excess calories. It is also suitable for women following a diabetes management plan (one serving of Similac Mom is one carbohydrate exchange).

Summit slated
The UP Association of Civil Engineering Students, on its 58th year, is hosting the National Civil Engineering Summit (NCES) 2012 on Sept. 4 to 8 at the University of the Philippines - Diliman. NCES 2012 is a weeklong celebration of influential events that aim to uphold camaraderie among its participants and equip them with skills and ethics in nation-building. With over 2,500 engineers and engineers-to-be that is expected to join, jam packed activities are on the line for the biggest Civil Engineering event in the country. For more information, visit www. upaces.org/nces.

Mead Johnson Makati facility turns 44

The management and staff of Mead Johnson Nutrition (MJN) Philippines recently celebrated its Makati Facilitys 44th anniversary with a mass followed by a simple half day of fun interaction that included a quiz show and raffle of exciting prizes among associates. The manufacturing facility is located along Chino Roces (formerly Pasong Tamo) Avenue Extension, Makati City. Photo shows MJN Supply Chain Director Nyoman Mahardika; Marketing Director Pat Sly; and Plant Operations Manager Patty Dela Cruz.

NOTE: Press and photo releases are published in this paper free of charge. Priority will be accorded to releases of news value, which are subject to editing. Releases may be e-mailed to bulletins@bworld.com.ph. Materials sent become BW property.

8/S2

World Sports
Rory vs Tiger
ensured the dream pairing for todays proceedings had he been able to birdie the par-five 18. Instead, he was forced to settle for an upand-down par due to his poor drive and misjudged approach after a layup, keeping him in third place, two strokes off McIlroys pace. Under the circumstances, his score of three-under 68 was the worst he could have carded; he missed multiple birdie opportunities because, in his own words, he wasnt rolling [putts] correctly. Parenthetically, it bears noting that Woods performance has been hampered by sheer inconsistency with the flatstick. He has needed a whopping 58 putts to negotiate the first 36 holes at TPC Boston in Norton, Massachusetts, and actually lost strokes on the greens vis--vis the field yesterday. Meanwhile, McIlroy has vastly improved his putting, once a weak facet of his game, since hooking up with coach David Stockton; not for nothing did he top the charts in total putts, putts per round, and steaks gained from putting. If recent history is any indication, McIlroy appears headed for another dominant finish. In contrast, Woods is angling to disprove the growing sentiment that he gets worse as a tournament progresses. And were he truly intent on booking a spot alongside the current World Number One in the last group, he would have had a fine showing today. Else, he will be facing more queries on his seemingly artificial progress under new swing mentor Sean Foley. The glory of the past has bought him time, but its running out, and fast, in the face of compelling evidence being provided by his apparent successor.

EDITOR FRANCISCO P. BALTAZAR Monday, September 3, 2012

COURTSIDE
Anthony L. Cuaycong
By the time this piece hits the streets, pro golf habitues will have already known if the third round of the Deutsche Bank Championship went their way, with Tiger Woods and Rory McIlroy crowding the top of the leaderboard to provide an ultra-competitive final flight tomorrow. Indeed, the possibility has had fans pursing their lips in keen anticipation, and not just because the two are locked in a tight battle for the United States Professional Golfers Association Tour Player Of The Year honors. To be sure, Woods could have

AFP

Rory McIlroy of Northern Ireland lines up a putt on the second hole during the second round of the Deutsche Bank Championship at TPC Boston on Sept. 1 in Norton, Massachusetts.

Federer, Serena cruise

To the fourth round of US Open
NEW YORK Top-ranked Roger Federer continued his dynamic US Open form in near-tropical conditions yesterday while fourth seed Serena Williams braved the steaming heat to avenge a shock defeat she suffered in January. With a potential semifinal showdown with Federer looming, Andy Murray remained in the hunt for his first grand slam crown by defeating Spains Feliciano Lopez to reach the fourth round. Womens second seed Agnieszka Radwanska set up a fourth-round tussle with Italys Roberta Vinci by stopping Jelena Jankovic 6-3, 7-5 at a steamy Arthur Ashe Stadium. With the hot conditions you really have to fight yourself more than your opponent, said Pole Radwanska, a sentiment echoed by several players. Federer cruised past Fernando Verdasco 6-3, 6-4, 6-4 in two hours and two minutes, blasting seven aces and 30 winners against the 25th-seeded Spaniard. The Swiss master, however, deviated from his normal baseline game and rushed the net 27 times, a tactic that earned him 26 points. I had no clue my stats were that good, he said. Fernando did have some good chances for good passing shots. Looking back, I dont remember missing too many volleys and overheads. Probably half the time I didnt have to volley because it was hard to hit a good pass. It was windy. Usually when I do come in, its probably on one I can be very offensive on. Federer has not lost a set at the US Open this year, as he moves closer to a sixth title at the National Tennis Center. Next up is either American Mardy Fish or Frenchman Gilles Simon for a place in the quarterfinals. Verdasco, 28, had 35 unforced errors and 10 double faults as he lost to Federer for the fifth time in as many meetings. Like Federer, Williams has not lost a set but needed a break of serve in the final game of the opening set to grab the momentum as she ousted Russian Ekaterina Ma-

McIlroy leads with Tiger lurking at Deutsche Bank

NORTON, Massachusetts Rory McIlroy fired a second consecutive six-under 65 to take a oneshot lead after the second round of the Deutsche Bank Championship yesterday but Tiger Woods was lurking just two shots back. The world number one set the pace in the morning wave with an impressive round consisting of six birdies, an eagle and two bogeys to lead by one over former British Open champion Louis Oosthuizen. South African Oosthuizen matched McIlroys 65 to move to 11-under 131 at the FedEx Cup playoff event while Woods and fellow American Ryan Moore shared third at 10-under 132. Im very pleased with how I played today, how I played yesterday as well, and Im in a great position, McIlroy said. I got off to a nice start and just kept the momentum going. Everything seemed to work pretty well out there. I felt like I drove the ball a bit better today and hit more fairways, which gave me some more opportunities to make birdies, and I was putting well enough to take a few of those. McIlroy finished nine shots behind Barclays Classic winner Nick Watney in week one of the playoffs in his first appearance after claiming the PGA Championship. The 23-year-old was unperturbed, however, suggesting the greens in New York were not entirely up to scratch and he just needed to shake a little rust off his putter. He leads the field in strokes gained putting and total putts after the opening two rounds. Theres been a big improvement in my putting from last week to this week, he confirmed. I wasnt very comfortable on the greens at all last week. They werent the best surfaces. I think everyone saw that. This week the surfaces are much better, and it gives you a little more confidence that you can roll your putts at the hole a bit more. Woods had the opposite problem, lamenting a poor day on the greens. After ranking seventh in the field in strokes gained putting on day one, the 2006 Deutsche Bank champion fell to 68th in the field in round two. Im happy with the way I hit it but I didnt putt very good, Woods said. I didnt really make anything. Today was one of those days where I had some good looks, missed them, but didnt feel like I was really rolling it correctly. My speed is good, its just that I need to make a few more. Hopefully tomorrow will be a lot better. Oosthuizens round was highlighted by a magical hole out flop shot for eagle from just off the drivable par-four fourth. He added five birdies with just the lone bogey. I played really well and I hit the ball nicely, Oosthuizen said. Hit a few loose drives out there but gave myself a lot of birdie opportunities. The playoffs are over for several players who missed the cut, including K. J. Choi and Rory Sabbatini. The leading 70 players on the FedExCup points list after this event advance to the BMW Championship, with the top 30 then progressing to the Tour Championship finale in Atlanta, where the overall points winner pockets a $10-million bonus. Reuters

AFP

AFP

Roger Federer (L) of Switzerland serves against Fernando Verdasco of Spain during their mens singles third round match, while Serena Williams (R) of the United States returns a shot against Ekaterina Makarova of Russia during their womens singles third round match on Day Six of the 2012 US Open at USTA Billie Jean King National Tennis Center on Sept. 1 in the Flushing neighborhood of the Queens borough of New York City.

karova 6-4, 6-0. Makarova buckled under the pressure of her first-set letdown and was blown away in the second in just 32 minutes. The Russian knocked out Williams in the fourth round of this years Australian Open and the American said she was motivated to turn the tables at the years final grand slam tournament. PAINFUL VIDEO The 30-year-old Williams, a threetime US Open winner and a 14time grand slam champion, said it was painful to watch a video of her defeat by Makarova. Knowing that I lost [I thought it] could definitely happen again, said the Wimbledon and London Olympic champion. I did not want that to happen. Whether I learned something from that match, I dont know. I

really hate watching matches that I lose unless Im punishing myself. I didnt punish myself. Williams punished Makarova yesterday, enjoying a 31-10 advantage in winners and claiming all eight of her service games. Murray, who won Olympic gold last month, recovered from a midmatch lapse to defeat Lopez 7-6, 7-6, 4-6, 7-6 in three hours and 53 minutes. The Briton was leading 4-2 in the third set before Lopez fought back to send the match into a tense fourth set. The last few sets were tough, said Murray. I just played a little bit better at the end of the tiebreaks, a little bit more solid than him, and that was the difference. Murray said the oppressive heat made the match mentally and physically challenging. I actually felt better towards the end of the match than I did

maybe halfway through it, he said. It was probably down to a combination of things, having not played that much in these conditions. Its just taking a while to get used to it. I usually have three weeks in Miami before the US Open but I couldnt this year because of the Olympics. It was a nice problem to have though. A somber Lopez said Murray deserved to win the match. I was two sets to love down and I was still was believing that I could make it, even a break down in the third, he said. It was a tough, tough match. Long rallies. It was hot. Andys making you always play one extra ball. Its not like I should have won but I could have won. Third seed Murray next plays 15 th-seeded Canadian Milos Raonic, who beat American James Blake 6-3, 6-0, 7-6. Reuters

Button ends three-year wait with Spa pole

SPA-FRANCORCHAMPS, Belgium Jenson Button celebrated his 50th Formula One race for McLaren by ending a three-year wait to claim pole position in qualifying at the Belgian Grand Prix on Saturday. The pole was Buttons first since the 2009 Monaco Grand Prix, the year he won a memorable championship with Brawn GP, and his first at McLaren and at the majestic Spa circuit. Kamui Kobayashi put his Sauber on the front row, a career best for him and only the second time a Japanese driver has qualified so high on the grid. Venezuelan Pastor Maldonado was third fastest for Williams, his best qualifying display since he started on pole in Spain in May, but stewards later handed him a threeplace penalty for impeding Force Indias Nico Hulkenberg. That elevated Kimi Raikkonen to third for Lotus. Its been quite a long time since I got my last pole position, grinned Button who whooped with delight after being told he was P1 over the team radio on a sunlit afternoon after heavy rain washed out Fridays practice. Button, who now has eight career poles to his credit, is only seventh in the championship and a massive 88 points adrift of Ferraris overall leader Fernando Alonso but has refused to give up hope. The Briton has never won at Spa and nor has Alonso, who can rack up a record-equalling 24th successive points finish on Sunday. The Spaniard will be fifth on the grid behind the two Ferrari-powered Saubers. Alonsos closest title rival, Red Bulls Mark Webber, was seventh fastest but has a five-place penalty due to an unscheduled gearbox change. Raikkonen, the driver with the best record at Spa in recent years with four wins at the longest circuit on the calendar, will be third on the grid for Lotus ahead of Saubers Sergio Perez of Mexico. Saubers form was an eye-opener, with Kobayashi only the second Japanese to start a grand prix on the front row. The other was Takuma Sato who qualified second for the 2004 European Grand Prix at Nuerburgring. We expected a good weekend but not to be second in qualifying. We expected a strong result so we have a good chance in the race, said Kobayashi who was just 3/10ths of a second behind Button. The Swiss team have not qualified on the front row this century with their last and second ever appearance at the sharpest end of the grid coming at the 1999 French Grand Prix with Jean Alesi. Red Bulls double world champion Sebastian Vettel failed to make the final phase of qualifying but will start 10th due to his team mates demotion to 12th. Further back there was dismay for Mercedes who saw Nico Rosberg fail to get through the first session. The German will start 23rd due to a five-place penalty. His illustrious team mate Michael Schumacher, celebrating his 300th grand prix at the circuit where he made his debut in 1991, starts 13th. Reuters

Clijsters career ends with doubles defeat

NEW YORK The professional tennis career of Kim Clijsters officially ended yesterday when the Belgian lost in the second round of the mixed doubles event. The four-time grand slam winner, partnered by American Bob Bryan, lost to Russian Ekaterina Makarova and Brazilian Bruno Soares, losing 6-2, 3-6 (12-10). The three-time US Open singles champion said she would like to be remembered for always giving 100% effort. I always tried to give my best, she told reporters in her postmatch news conference. Even from when I was eight years old until this last match, I always tried to give my best in everything that I did, whether it was sitting here or on the practice court. The 29-year-old said she had remained focused for the doubles and mixed doubles even though it was a lot more relaxed obviously than my singles. Clijsters said she has no regrets about putting her racket down. Reuters

AFP

Kim Clijsters of Belgium opens gifts from members of the Belgian media following her mixed doubles victor on Day Five of the 2012 US Open at USTA Billie Jean King National Tennis Center on Aug. 31 in the Flushing neigborhood of the Queens borough of New York City.

EDITOR FRANCISCO P. BALTAZAR Monday, September 3, 2012

World Sports
University Bulldogs. The Tigers (8-3) were 58-57 victors over NU on Aug. 26 while the Falcons (2-9) topped the University of the Philippines Fighting Maroons, 75-70, on Aug. 30. The Bulldogs, meanwhile, bounced back from their UST loss by beating the University of East Red Warriors, 83-74, on Aug. 30. Bedan, baste win Over at the National Collegiate Athletic Association, the San Beda Red Lions and San Sebastian Stags fortified their top positions. Defending back-to-back champions Lions came out on top of the Letran Knights, 68-62, on Sept. 1 while the 2009 champs Stags cut the Arellano Chiefs, 79-71, earlier on Aug. 30. Against the Knights, the Lions bucked a slow start to continue their recent run of good form. Making full use of its depth and balanced, San Beda (10-2) held on versus a spirited fight from rival Letran. Forward Art Dela Cruz poured in 14 points while guard Baser Amer had 11 to go along with six assists. The loss dropped the Knights to 6-6, for fifth place. San Sebastian, meanwhile, rode the shoulders of its Big Two sans the third member of its three-headed monster, Calvin Abueva, against the Chiefs. Abueva was serving his one-game suspension after a hard foul on a Lyceum player in their previous game. But the Stags hardly missed a beat without their best player as Ian Sanggalang and Ronald Pascual combined for 40 points and 23 rebounds. The win pushed the Stags to a second-running 9-3 while dropping the Chiefs to 4-8. Victorious as well last week were the Jose Rizal University Heavy Bombers and College of St. Benilde Blazers. JRU (8-3) topped the Mapua Cardinals, 63-60, on Aug. 27 while St. Benilde (4-8) bested the Lyceum Pirates (2-10), 87-73, on Aug. 30. Settling for a split were Letran who won over the Perpetual Help Altas, 62-57, on Aug. 27, before losing to San Beda later in the week, and Mapua (5-7) who bounced back after its loss to JRU with a triumph over the EAC Generals (4-8), 80-55, on Sept. 1. MASM In front of a large crowd last Friday at the Smart Araneta Coliseum, ONE FC 5: Pride of A Nation, ONE Fighting Championships first foray here in Manila, delivered on its promise of a prideand action-filled mixed martial arts event. For four hours, local fight fans were treated to in equal parts an entertaining and intense MMA engagement that Asias top MMA organization has been known for. Pride of A Nation kicked off with the combatants being announced by infectious ONE FC announcer Lenne Hardt, aka Crazy Pride Lady. One by one, the fighters made their way to the ring, some wearing Philippine-inspired apparels, which brought the crowd to its feet. Two Filipino fighters set the tone for the event with upcoming fighter Andrew Benibe of Maics Gym battling Universal Reality Combat Championship lightweight champion Honorio The Rock Banario of Team Lakay in the first featured fight of the 11-bout card. Twenty-yearold Banario proved too much for Benibe to handle as the former pounded on the latter en route to a TKO win at the 3:47 mark of the third round. Pinoy pride continued to hold as the night wore on with two more Filipino fighters, Eric The Natural Kelly and Eduard Landslide Folayang, winning their respective battles. Kelly, the URCC featherweight champion, continued with his impressive win streak, which now stands at eight, by stopping veteran American fighter Jens Lil Evil Pulver via referee stoppage 1:42 minutes into the second round of their featherweight encounter. Fighting out of Muayfit in Kuala Lumpur, Malaysia, Kelly rained a series of strikes on Pulver that the American simply could not handle. So impressive was Kelly that it moved his opponent to proclaim him as the Manny Pacquiao of MMA. Kelly, with his win, is also set to compete for a title belt in ONE FCs next event in Singapore in October against compatriot Banario.

S2/9

College hoops: Ateneo doubles; NCAA Top 2 win

It was another dominating week at the office for defending UAAP champions Ateneo Blue Eagles just as the top two teams in the NCAA hack out wins last week. Fortifying further their hold of the University Athletic Association of the Philippines leadership heading into the final four, the Eagles defeated title rivals Far Eastern University Tamaraws, 77-64, on Aug. 29 then beat archrivals DLSU Green Archers, 77-67, on Sept. 1. A game marked by much physicality, punctuated by three players being ejected, Ateneo rode a second-half offensive blitz to turn things around from a two-point deficit at the half. Guard Juami Tiongson and senior forward Nico Salva led the way for Ateneo who bucked the early ejection of starting forward Ryan Buenafe because of unsportsmanlike foul. Tiongson and Salva combined for 31 points with the former going for fourof-six from beyond the arc which proved to be key in their run. The Tamaraws, who saw forwards Ray Mark Belo and Arvie Bringas led to the exit even before the game ended for their involvement in separate altercations, were paced by former league most valuable player RR Garcia with 14. The Loyola dribblers then followed up their win over FEU by downing La Salle later in the week. Behind the huge game of forward Buenafe, who scored a UAAP career-high 24 points, Ateneo staved off each and every rally of the Archers to blank the latter anew in the eliminations. The win also gifted Ateneo (9-1) the overall lead in their UAAP head-to-head matchup with La Salle (6-4) at 35-34. Rookie sensation Jeron Teng led La Salle with 22 markers with reserved guard Almond Vosotros coming through with 20. Despite their loss to Ateneo, FEU and La Salle still managed to hack out a split in Week Six of Season 75. The Tamaraws won over the Adamson Soaring Falcons, 76-68, on Aug. 26 while the Archers edged the University of Santo Tomas Growling Tigers, 53-51, on Aug. 29. Also squeezing a .500 mark were UST, Adamson and the National

Pride, action at ONE FC event

ONE FC

Filipino fighter Eduard Landslide Folayang throws a kick at Swiss-Japanese opponent Felipe Enomoto during ONE FC 5: Pride of A Nation last Friday. Folayang won by unanimous decision.

Folayang, for his part, was a picture of control and domination in his co-main event lightweight encounter with Swiss-Japanese Felipe Enomoto that went the distance. One of Team Lakays top fighters, Folayang dazzled his opponent with a flurry of punches and kicks all throughout that left the latter grappling for his game. Enomoto tried to will his way back in the final round but it was not enough to overhaul Folayangs lead en route to a unanimous decision victory for the Filipino wushu expert. The win also set up Folayang for a lightweight title shot against Brazilian Zorobabel Moreira in ONE FCs event next month. Gracies Another anticipated part of Pride of A Nation were the fights involving scions of the legendary Gracie family. Brothers Gregor and Rolles Gracie defeated their respective foes in convincing fashion. Gregor did not waste much time in his catchweight (80 kg) bout as he stopped Australian Nicholas Mann at the 3:26 mark of the opening round by way of armbar. Heavyweight older brother Rolles took a while to finish his fight with Aussie Tony The Gun Bonello but nonetheless was impressive with a naked choke 3:27 minutes into Round 3.

Unfortunately for the Gracies, another brother, Igor, lost his welterweight fight to South Korean Stone Cutter Jung Hwan Cha by TKO in the third round. Showing undaunted aggressiveness, Cha scored the upset by descending a barrage of strikes on the Brazilian while the latter was down on his back until the referee stopped the fight at 1:03 minutes of the final round. Twenty-year-old Soo Chul Kim made it a double for the Korean contingent by beating hometown bet Kevin The Silencer Belingon with a unanimous decision in an earlier bout. Belingons loss prevented a Philippine shutout in the event. No-contest The highly anticipated fourth encounter between heavyweights Tim The Maine-iac Sylvia of the US and Andrei The Pit Bull Arlovski of Belarus, meanwhile, ended in a controversial no-contest. After engaging each other with solid punches, Arlovski connected on two vicious right hands in the second that floored Sylvia. Arlovski, however, proved too overzealous to finish his opponent, going for successive kicks to Sylvias head that were later ruled illegal and earned for the Belarusian a yellow card. After a discussion among the

judges and Sylvia saying he could not go on, the fight was ruled a nocontest that sent the crowd to an uproar. The historic night ended with Brazilian champion fighter Bibiano The Flash Fernandes beating Australian Gustavo Falciroli in their bantamweight main event via a unanimous decision. Showing far superior ground game, Fernandes did not let his opponent to get his groove as he coasted to the win. With the successful staging of their maiden event in the country, ONE FC Chief Executive Officer Victor Cui could not hide his delight at the press conference after the event. He thanked everybody who supported Pride of A Nation, especially the fans, and said they had a lot of fun here and looking forward to coming back. The rest of the fight card went as follows: Thai Shannon OneShin Wiratchai coming back to score an upset over American Mitch The Dragon Chilson via TKO (vicious right and kick to the face) in the second round of their featherweight fight; and MMA legend The New York Bad Ass Phil Baroni making short work of Brazilian Rodrigo Ximbica Ribeiro by way of TKO with a barrage of punches one minute into the fight. MASM

CHESS PIECE
Bobby Ang
Chess Olympiad Istanbul, Turkey Aug. 27-Sept. 10, 2012 Standings after Round 5 (note: in tiebreak order) 1-2. Armenia, Russia, 10.0/10 3-4. Azerbaijan, Croatia, 9.0/10 5-21. China, Ukraine, Germany, India, United States of America, Hungary, Philippines, Czech Republic, England, Bulgaria, Spain, Montenegro, Bosnia & Herzegovina, Poland, Slovenia, Italy, Israel, 8.0/10 Total of 149 teams Time Control: 90 minutes for the first 40 moves then 30 minutes for the rest of the game with 30 seconds added after every move starting move 1. The Olympiad is using the match points system, 2 points for a match win, 1 for a draw and 0 for a loss. Therefore when the Philippines beat Kazakhstan 4-0 in round 3 we scored two match points and the four game points we scored is only used in the tiebreak computations. The first tiebreak is a bit complicated it tries to take into consideration the strength of your opposition therefore the total number of points scored by your opponents are added to your own. Here are the complete tiebreak rules: a) 1 st tiebreak: the sum of Sonneborn-Berger points, which are calculated as follows: match points of each opponent, excluding the opponent who scored the lowest number of match points, multiplied by the number of game points achieved against this opponent; b) 2nd tiebreak: by the number of the game points scored;

Olympiad wars
c) 3rd tiebreak: by the sum of the match points of all the teams opponents, excluding the lowest one. As of now the Philippines is in 11th place, quite a good showing. We won four matches (Libya 4-0, a 2.5-1.5 upset over Moldova, a sensational 4-0 whitewash vs Kazakhstan and a big win against Iceland 3-1) and lose a narrow 1.52.5 to Armenia, which by itself is not so bad either, given that Armenia won two Olympiad golds (2006 and 2008) and are leading the tournament at the moment. Individual Performances: 1. GM Wesley So 2652, 3.5/5 rating performance of 2719 2. GM Oliver Barbosa 2554, 4.0/5 rating performance of 2685 3. GM Eugene Torre 2469, 0.5/1 4. GM Mark Paragua 2508, 4.0/5 rating performance of 2687 5. IM Oliver Dimakiling 2428, 3.0/4 rating performance of 2631 In the first round, the Philippines faced Libya, and of course we were favored to prevail but opening day jitters and the tension of trying to do very well for the country kept the Philippine team captain GM Jayson Gonzales in a state of nerves. However, soon GM Oliver Barbosa broke the ice by trapping his opponents queen at his side of the board: Barbosa, Oliver (2554) - AlZayat, Ahmed (1977) [A50] 40th Olympiad Open Istanbul TUR (1.2), 28.08.2012 1.d4 Nf6 2.c4 b6 3.f3 Bb7 4.e4 d6 5.Nc3 Nbd7 6.Be3 e5 7.Nge2 g6 8.Qd2 h5 9.h4 Ba6 10.b3 Bg7 11.g3 Bb7 12.Bg2 a5 13.00 00 14.Rad1 Re8 15.Qc2 Qe7 16.Rfe1 c6 17.Bf2 Rac8 18.Bh3 Rc7 19.Na4 Bc8 20.Bg2 Rb7 21.a3 b5 22.Nb2 Nf8 23.c5 Ne6 24.cxd6 Qxd6 25.Nd3 Qxa3 26.dxe5 Nd7 27.f4 a4 28.b4 Bf8 29.Qd2 Nb6 30.Bxb6 Rxb6 31.Ra1 Qb3 32.Reb1 Qc4 33.Rc1 Qb3 34.Rab1 Qa3 35.Rc3 Bxb4 36.Nxb4 Rd8 37.Qxd8+ Nxd8 38.Rxa3 Be6 39.Bf1 Nb7 40.Nd4 c5 41.Nxe6 cxb4 42.Rxb4 10 After that the points started coming. In the second round we had our first strong opponent Moldova, a former Soviet Socialist Republic. Oliver Dimakiling won on board 4 and all the other games were drawn for the upset. In fact, we could have had a bigger margin Wesley So played brilliantly against their no. 1 board GM Viorel Bologan (a powerful 2734 player) but just faltered at the crucial moment: So, Wesley (2652) - Bologan, Viktor (2734) [B42] 40th Olympiad Open Istanbul TUR (2.1), 29.08.2012 1.e4 c5 2.Nf3 e6 3.d4 cxd4 4.Nxd4 a6 The Sicilian Kan. 5.Bd3 Bc5 6.Nb3 Be7 The main alternative 6...Ba7 has been a bit under the cloud lately because of the line 7.Qg4!? Nf6 8.Qg3 (8.Qxg7? Rg8 9.Qh6 Bxf2+!) 8...d6 9.Nc3 Nc6 10.Bg5!? after which Black is uncomfortable. A sample: 10...h6 11.Bd2 e5 (if 11... Ne5 then simply 12.Be2 followed by pushing the f-pawn) 12.000 Nh5 13.Qf3 Nf6 14.h3 Black has a problem with king safety. 7.f4 The critical continuation here is 7.Qg4 as well, but there is, of course, nothing wrong with the text. 7...d6 8.Qf3 Nc6 9.Nc3 Nf6 10.00 00 11.Bd2 Nb4 12.Qg3 Nd7 13.Rad1 Nxd3 14.cxd3 Bh4 15.Qh3 Bf6 16.g4 Nc5 17.g5 Bxc3 18.Bxc3 Na4 19.Qh4 Nxc3 20.bxc3 f6 21.gxf6 Rxf6 22.Kh1 Bd7 23.Rf3 Rc8 24.Rh3 h6 25.Rg1 Kh7 [25...Rxc3?? 26.Rhg3 Qe7 27.Rxg7+! Qxg7 28.Qxf6!] 26.Rhg3 Rf7 27.Qh5 Qf8 28.Nd4 Kh8 29.Ne2 d5 30.f5 e5?! Bologan wanted to stop the White knight from getting to f4 and, from there, to g6. The cure though is worse than the disease. 31.f6! gxf6 32.exd5?! No harm done yet, but the winning method is 32.Rg6 Rh7 33.exd5 followed by 34.Qf3 Rf7 35.Ng3. Wesley can still get into this next move though. 32...Rh7 33.d4? Lets the win slip. He could still get into the method above by playing 33.Rg6! with the same idea of Qf3 followed by Ng3e4. If Black responds like in the game 33... Qf7 then 34.c4 b5 35.Nc3! We can continue the analysis further: 35... bxc4 36.Qf3 cxd3 37.Ne4 f5 38.Nd6 wins. 33...Qf7 34.Qxf7 [34.Qf3 Bb5! getting rid of the dangerous knight allows Black to hold the position] 34...Rxf7 35.Re3 Bb5 36.dxe5 Bc4 37.Rg6 Bxd5+ 38.Kg1 Rg7 39.Nf4 Bxa2 40.exf6 Rxg6+ 41.Nxg6+ Kh7 42.Ne5 Rf8 43.Rf3 Be6 44.c4 h5 45.Kf2 a5 46.Ke3 a4 47.Kd4 a3 48.Rxa3 Rxf6 49.Ra7 Bc8 50.c5 Kh6 51.Ra8 Bh3 52.Rb8 Rf4+ 53.Ke3 Rf5 54.Ke4 Rf2 55.Rh8+ Kg5 56.Rg8+ Kh6 57.Ke3 Rc2 58.Rg3 Rc3+ 59.Kf4 Rxg3 60.Kxg3 Be6 61.Kf4 h4 62.Nf3 Kh5 63.Nd4 Bd5 64.Nf5 Bh1 65.Ne3 Bc6 66.Ng4 Bh1 67.Ne5 Bg2 68.Nd3 Bc6 69.Ne5 Bg2 70.Nf7 Bd5 71.Nd6 Bc6 72.Kf5 Bd7+ 73.Kf4 Bc6 74.Nc8 __ One of the big fish that got away. Against Kazakhstan everything went our way. Prior to Istanbul we had never beaten the Kazakhs. Back in the 90s The Philippines and Kazakhstan played a 4-round match to determine who would represent Asia in the World Team Championship and the Pinoys lost badly. We have not managed to avenge that loss yet but I guess beating them 4-0 here is a good start. Kostenko, Petr (2494) - Paragua, Mark (2508) [B11] 40th Olympiad Open Istanbul TUR (3.11), 30.08.2012 1.e4 c6 2.Nc3 d5 3.Nf3 Bg4 4.h3 Bxf3 5.Qxf3 Nf6 6.d3 e6 7.Bd2 Nbd7 8.g4 h6 9.Qg3 dxe4 10.dxe4 e5 11.000 Qc7 12.h4 Bb4 13.f3 000 14.Bc4 Nb6 15.Bd3 Nfd7 16.g5 h5 17.Rhf1 Bxc3 18.Bxc3 Na4 19.Be1 Ndc5 20.Qf2 Rd4 21.b3 Qd6! 22.bxa4 Nxa4 23.Qg3 Trying to get the king out of the way with 23.Kd2 runs into 23... Nc3! 23...Rd8 24.f4 Of course 24.Kd2 Rxd3+! 24...Qa3+ 25.Kd2 Nc3 26.Qh3+ Kb8 27.fxe5 Rxd3+! 28.cxd3 Qb2+ 0-1 [28...Qb2+ 29.Ke3 Nxd1+ 30.Kf4 Qc1+ 31.Kg3 Rxd3+ the end] Dimakiling, Oliver (2428) Kuderinov, Kirill (2484) [A06] 40th Olympiad Open Istanbul TUR (3.11), 30.08.2012 1.Nf3 d5 2.b3 Nf6 3.e3 g6 4.c4 c6 5.h3 Bg7 6.Bb2 00 7.Nc3 b6 8.d4 e6 9.Qc2 Bb7 10.Be2 Nbd7 11.00 Re8 12.Rad1 Qe7 13.Ne5 Rac8 14.f4 c5 15.Ba3 Nxe5 16.fxe5 Ne4 17.Nxe4 dxe4 18.Rde1 Rf8 19.Bg4 Qg5 20.Qf2 f5? He should have played first 20... h5 21.Bd1 and then 21...f5. Kuderinov probably saw Whites 22nd move, but underestimated the follow-up. 21.exf6 Rxf6 22.Bxe6+! Kh8 And now, after Whites queen gets out of the way, Black will play ...Rxe6 and be up by a piece. Dimakiling saw a bit farther... 23.h4! Qh6 <D>

Position after 23Qh6

24.Qxf6! Bxf6 25.Rxf6 Blacks queen is no match for the active pieces. White is already threatening a rout with 26.d5 followed by 27.Bb2. 25...Rf8 26.Rxf8+ Qxf8 27.d5 Kg7 28.Rf1 Qb8 29.Bb2+ Kh6 30.Bf6 Qe8 31.Rf4 b5 32.g4 Bc8 33.Rxe4 Qf8 34.Kg2 bxc4 35.bxc4 g5 36.Bxg5+ Kg7 37.Rf4 Qe8 38.Bf6+ 10 Black resigns. After the forced 38Kf8 (38...Kh6 39.Be5 Bxe6 40.Rf6+ Kg7 etc 41.Rxe6+) 39.Bd4+ Ke7 40.Bxc5+ Kd8 41.Bxc8 Kxc8 42.Rf8 is just too horrible to bear. There are still 6 rounds of exciting chess ahead of us. When the International Chess Federation (FIDE) was first set up in the 1920s it was solely for the purpose of organizing the chess Olympiads. There was no talk yet of administering the rating system, determining the world champion, etc. etc. My personal opinion is that this remains the most important function of FIDE and it is a big shame when top players choose not to play for their national teams. Reader comments/suggestions are urgently solicited. E-mail address is bangcpa@gmail.com.

10/S2

EDITOR ALICIA A. HERRERA Monday, September 3, 2012

Cast pearls
TAKE TEN
Behn Cervantes
I took a taxi one hot afternoon. It was a relief to see the sun. It was just days after terrible Gener had wrought havoc on Greater Manila with torrential rains, floods and more. (I hear that areas

Hermes to protect exclusive image with fewer new stores

PARIS/MILAN French luxury giant Hermes is to open fewer new stores over the next five years to protect its high-end image from over-exposure in a retail market where being one of the most exclusive brands seems to guarantee smooth sailing through global financial turmoil. Given risks of brand dilution, we must be prudent. We are going to significantly reduce our store openings to renovate and expand the existing stores, Chief Executive Patrick Thomas said on Friday after publication of the companys first-half results. Hermes, which has 340 stores worldwide, still plans to open more stores in Middle East, Latin America and China but not in Europe, the CEO said. It targets a total of 350 to 360 stores in five years. The French company belongs to the so-called absolute luxury sector, which is the most expensive and fastest growing in the luxury market thanks to demand from emerging markets, particularly China. This segment currently accounts for 40 billion of the 191 billion luxury market, according to research from consultancy Bain. Hermes, maker of 10,000 leather bags and silk dresses, in which the billionaire owner of rival LVMH Bernard Arnault owns 22.3%, raised its annual sales growth target after reporting a double-digit increase in first half revenue and profits. Hermes is now targeting 12% annual growth at constant exchange rates, up from a previous target of 10%. Big-spending Asian markets like China, Singapore and Hong Kong contributed to the strong results. These markets defied slowdown fears by producing 25% sales growth in the first half. All product lines, from leather goods to jewelry and watches, grew at double-digit rates. Thomas said that sales trends in July and August were in line with the first half. Operating income increased by 22.2% in the first half to reach 510.9 million, or a 32.1% operating profitability, close to the performance achieved last year. A good and reassuring publication for Hermes, Cheuvreux analyst Thomas Mesnin said in a note, adding that concerns prompted by management earlier in the year about profitability did not seem to be justified. In May, the CEO had told Reuters this year would be difficult because of turmoil in Europe. Shares in Hermes rose above 2% on Friday, slightly outperforming a firmer French market. Reuters

in Malolos are still under water.) The rains were so bad that even our high area was in danger of flooding. Old friends like Nestor Torre, Jr. and Joonee Gamboa suffered during the incessant rains as their respective homes went under water. Another friend sent me a text begging for help. He forgot his pride and begged for food for himself and his siblings. Naturally, I was moved by his story about how their home got flooded. At first, the water reached their knees. Then, as the rains came and came (without stop) and the water rose lampas tao! (a mans height!) I gave my friend whatever food I could find in the pantry except for uncooked rice, the rest of the items were sugar-free and low in carbohydrates! These items were part of my low sugar supply. What could I do? I was an insulin-dependent diabetic. Had he warned me beforehand, I could have gone to the grocery to buy some items. I hunted for clothes he and his siblings might wear during their stay in a basketball court. I gave him low carbohydrate cookies and found some chocolate-flavored sugar-free cookies. (Would his young siblings like those? Yes, he promised as he profusely thanked me.) I gave him some honest-to-goodness candies to make up for the sugar-free items. I asked the maid to buy some bread and sardines at the sari-sari store in the corner. With that scene in mind, I started a convivial conversation with a taxi driver from Samar. I had been to Calbayog during the height of Martial Law when some religious then took me to the mountains there where I met with some New Peoples Army (NPA) soldiers. I asked him if he ever met any of these guerrillas? He gave an emphatic No! then finished his conversation with Mayron ba doon? (Are there any in Samar?) I felt that I was talking to the wrong person because provinces like Samar and Isabela back then had contingents of NPAs. In fact, natives of the province used to pride themselves with the number of such soldiers. I remember their pride sentimentally! I ended the conversation because the driver said he was born in MetroManila and hardly visited his home province. (In fact, I knew more about his province than he did. What information I had was foreign to him.) However, when I mentioned I had been to the wake of Sonny Escudero, he asked if Kris made an appearance. I said I had NO idea. To argue, he said Akala ko nandoon ka? (I thought you were there?) He was getting to really irritate me. Then, he wondered who the UP professor was with two big dogs. I said, I didnt know. (I did!) I was not going to gossip while he was ignorant of his home province. (I was getting really riled at his ignorance. Instead, he wanted to gossip. That peeved me!) He added that his step-father was a native of Antique. I said I knew Antique because I used to go there to help Evelio Javier. (I went back to help Enrique Zaldivar and Sally Z. Perez.) He asked who Evelio was. Who is Evelio Javier? Youve got to be kidding? Why did I give him a second chance? I didnt tell him that Evelio was the governor of the province who was assassinated before People Power. (If he didnt know Evelio Javier, how could he know Iking and Sally?) How could I talk to this... whatever! I told him that I was sleepy and would doze off. I was NOT happy talking to the likes of him. The words of a great Filipino came to mind: Those who do NOT know their yesterdays will not know how to get where they are going. I decided I was casting pearls before swine. Very angrily, I immediately turned off my communication mode! Ah, silence is golden!

Songwriter Hal David, 91

LOS ANGELES Hal David, a lyricist who along with composer Burt Bacharach took the pop world by storm in the 1960s with hits such as Raindrops Keep Fallin on my Head and Walk on By, died in Los Angeles on Saturday at age 91, a representative said. David died at Cedars- Sinai Medical Center of complications from a stroke, said Jim Steinblatt, spokesman for the American Society of Composers, Authors and Publishers, or ASCAP. Earlier this year, David and Bacharach received the Gershwin Prize for Popular Song from the Library of Congress, during a White House musical tribute. David, a native of Brooklyn, New York, began his songwriting career in the late 1940s by collaborating with writers he had met at Manhattans famed Brill Building, which at the time was the center of the pop industry. He started working with Bacharach in the late 1950s and their songs were recorded by such artists as Frank Sinatra, Marty Robbins, Tom Jones and Barbara Streisand. The singer most associated with the songwriting duo is Dionne Warwick, who rose to fame by scoring a number of Top 10 hits in the 1960s with material from David and Bacharach. Bacharachs and Davids song Raindrops Keep Fallin on my Head was written for the 1969 movie Butch Cassidy and the Sundance Kid and won the Academy Award for Best Song. They also won a Grammy in 1969 for best score from an original cast show album for their Broadway musical Promises, Promises, which included the song Ill Never Fall In Love Again. The play returned to Broadway in 2010 starring Kristin Chenoweth and Sean Hayes. The songwriting duos other hits included What the World Needs Now Is Love, I Say a Little Prayer, Do You Know the Way to San Jose, and (They Long to Be) Close to You, which is best known from a version by the Carpenters. David and Bacharach parted ways in the early 1970s. David went on to work with other composers. With Albert Hammond, he wrote the hit To All the Girls Ive Loved Before. Eunice David, the songwriters widow, who married him in 1988, said she used to watch him sit in an old rocking chair and write on a legal pad. All of a sudden, Id look up and there it was filled with lyrics, she told Reuters. It never ceased to amaze me how that happened. Songwriter Paul Williams, president and chairman of ASCAP, said in a statement that David was simple, concise and poetic. It is no wonder that so many of his lyrics have become part of our everyday vocabulary and his songs... the backdrop of our lives, Williams said. David served as president of ASCAP from 1980 to 1986. His parents were immigrants from Austria. His older brother, Mack David also achieved success by composing or co-writing a number of songs, including the 1944 Candy and the English version of Edith Piafs La Vie En Rose. David is survived by his wife, sons Jim and Craig, three grandchildren and two stepsons. Reuters

Author injured in plane crash

CAMANO ISLAND, Wash. Richard Bach, a pilot and author of the 1970s bestselling book Jonathan Livingston Seagull, was seriously injured when he flipped his small aircraft on landing at an island in northwestern Washington state, authorities said on Saturday. Bach, 76, clipped power lines with the landing gear of his 2008 Easton Gilbert Searey as he tried to land on a grass airstrip on San Juan Island, said Michael McElrath, the dispatcher for the San Juan County Sheriffs Office. The crash left Bach suspended upside down and strapped to his harness in the single-engine plane, McElrath said. A group of tourists found Bach and cut him loose from the wreckage. He was bleeding and had a dent in his head, Lucy Williams, one of the tourists, told the San Juan Islander, a local publication. A nursing supervisor at the Harborview Medical Center in Seattle said on Saturday that he was listed in serious condition. Bachs novella Jonathan Livingston Seagull, which was published in 1970 and topped the New York Times Best Sellers list two years later, tells of a daring seagull who pushes himself to become a phenomenal flyer and is expelled from his seagull clan. It was made into a movie in 1973. Reuters

In print and online

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Sudoku Pacific

Complete the grid so that every row, column and 3x3 box contains every digit from 1 to 9 inclusively.

Crossword
By Thomas Joseph
ACROSS 1 Locks of hair 6 Delicious 11 Customary 12 Carmen, for one 13 Stallone role 14 Make fresh 15 Portent 17 Decimal base 18 Authorization 22 Spring up 23 Conforms 27 Tycoon John Jacob 29 44th president 30 Already? 32 October birthstone 33 Ed Asner TV series 35 Member of the force 38 Halt 39 Concerning 41 Circus worker 45 Cats quarry 46 Pageant crown 47 Wendys friend 48 Like some beer DOWN 1 Scoundrel 2 Much of N. Amer. 3 Grog ingredient 4 All available workers 5 Replay feature 6 Twister 7 Gorilla or gibbon 8 Dispatched 9 Spruce or sequoia 10 Show boredom 16 Juan Perns wife 18 Woe is me! 19 Mexican coin 20 Light touches 21 Contraction 24 Mamas mate 25 Fed 26 Shaker fill 28 Weather vane motif 31 Squirrel snack 34 Reached 35 Summer spot for some 36 Bassoons kin 37 Sullen look 40 Employ 42 Small rug 43 Memorable time 44 Jay-Zs music

EDITOR ALICIA A. HERRERA Monday, September 3, 2012

S2/11

ARTIST Tyler Ramsey holds one of the TOMS shoes he embellished.

Art on your feet

If you blinked, you missed it. Last week, American artist Tyler Ramsey dropped by the country for a live art event to benefit the Philippine Red Cross. One might think his Asian tour couldnt have come sooner given the devastating floods that paralyzed parts of the capital last month. Actually the tour had been planned even before the rains poured in early August. The live art event held on Tuesday was also a way to drum up interest in TOMS, the footwear brand started by Blake Mycoskie that gives a pair of shoes to a needy child for every pair it sells. To date, the company has given over two million pairs of new shoes to children through giving partners around the world, including the Philippines. For the past few years now, Mr. Ramsey has been working with TOMS since his friend Mr. Mycoskie invited him to paint several pairs in his distinct style. Since then, the artist has painted 100,000 pairs. It may be more but I dont want to say that because the IRS might run after me, Mr. Ramsey quipped. Unlike other painters who have an array of brushes at the ready, he uses only his fingers to daub and smear. He is also known to squirt liberal amounts of paint on canvases ranging from wall-sized frames to those as small as a pair of TOMS. My relationship with the brand is one of the most important things that has ever happened to me. When I paint, I look at each color as having a personality of its own, and I create relationships for each color on every shoe I customize, he said. NO BLOCKS Mr. Ramsey said he has never experienced a real mental block although he feels something akin to it when somebody tells him what they want. My mother-in-law once asked me to paint a piece for her which I was willing to do. However, when she said it had to have some maroon in it, I didnt want to do it anymore, he said. The piece has yet to be painted. I dont think of myself as a decorator and I will not do anything inauthentic because I know it wont be any good, he said. At the live art event, Mr. Ramsey asked attendees to place their bags, shoes and whatever else they wanted spattered with paint in an open space. He then proceeded to squirt the pieces with a riot of colors. Those who were unable to attend can still bring home a piece of Mr. Ramseys work when they choose from and purchase any of several pairs of TOMS customized by the artist. Aside from the pair of shoes to be given to a child in need, P500 will go to the Philippine Red Cross for every pair sold. Raoul J. Chee Kee

Sunlight and desert inspire make-up line

An American cosmetic brand has been inspired by sunlight in the desert. Theres a time of day late in the summer when the light casts a flattering glow on the skin. Everyone looks beautiful [in that light] and thats the idea behind this collection, said Jill Baysa, senior marketing executive of Bobbi Brown Philippines. Thoughts of the desert and sun do not automatically bring up images of facial beauty but the brands new collection Desert Twilight combines Southwestern-inspired turquoise against a backdrop of sun-swept rose, plum and bronze shades to mimic this certain glow. The Desert Twilight was inspired by the light in the desert at the end of the day, she noted, recounting that Bobbi Brown has always loved to photograph people at the end of the daylight. She used to do a lot of location shoots in the desert and at the end of the day, theyd always whip out their cameras and take pictures of each other. The light is so flattering and beautiful, everyone looks gorgeous. She also recounted that while brainstorming for the collection, Ms. Brown was inspired by a necklace which featured a big piece of turquoise that she had recently purchased from the New York-based jewelry brand Lulu Frost. So the collection was inspired by the light at the end of the day and the color turquoise which is a really nice juxtaposition of a natural face with an unexpected bold color. The soft hues, specifically the nudes, pinks and bronzes are tawny versions of the colors one can usually be seen wearing in the summer, she noted, adding that the collection is about layering matte, sparkle and metallic shadows on your eyes, some creamy color on the cheeks and incredible color on the lips. A perfect way to transition into fall. Desert Twilight has nine items, highlighted by the eye palette (P3,000) containing eight eye shadows. There is a mini brush set (P3,000) with four essential brushes for eyes, lips and cheeks in a handy and portable container; a high shimmer lip gloss (P1,300) which features a special mix of pearls in a clear base with added moisturizing elements and Vitamin C and E; a less sparkly lip gloss (P1,300) comes with a new custom-designed brush which makes it easier to layer gloss over lipstick, and is enhanced with botanical extracts to keep lips supple and soft. The line also includes a long-wear gel eyeliner (P1,350), a long-wear cream shadow (P1,450); creamy color for lips and cheeks (P1,100); and a bronzer-blush duo. Icing on the cake is a nail polish (P900) in two pop colors. You dont have to match your nail color to your makeup. Its more modern to use color on the nails as an accent or accessory, said Ms. Baysa. The line is available at Bobbi Brown counters in Rustans Makati (812-2507), in Rustans ShangriLa (633-4636) and in Essences Rockwell (8229400). Camille Erika R. Sarte

Strengthening the foundation of the SSS Fund

First Action: Increase the present contribution rate from 10.4 to 11 percent. Periodic increases in the contribution rate are necessary to reduce SSS unfunded liability and to move the funds actuarial life towards perpetuity. Unfunded liability is the difference between the present value of future benefit pay-outs vis--vis the present value of contributions and assets. In 2011, the SSS unfunded liability was estimated at P1.07 trillion, which, if left unattended, will increase by eight percent per annum. For the fund life to reach perpetuity, which is defined as at least 70 years, a one-time contribution rate hike to 14 percent is recommended. However, a gradual increase in the contribution rate is more feasible and realistic. Thus, for starters, the current contribution rate of 10.4 percent should be raised to 11 percent, with the additional 0.6 percent to be divided equally between employers and employees. Increasing the contribution rate would result to a higher contribution collection, and translate to a higher level of investible funds and additional income to fund benefit enhancements. Second Action: Increase the maximum monthly salary credit (MSC) from P15,000 to P20,000. The MSC is the compensation base that determines the amount of contributions to be paid by the member and the amount of benefits to be derived (e.g., sickness and maternity allowances, disability and retirement pensions, etc.). A higher MSC would mean higher benefits for members, aside from higher contributions. The last increase in the maximum MSC to the current level of P15,000 was made in 2002. It is recommended that additional MSC levels be set, until the maximum MSC of P20,000 is reached, so that a greater portion of the members incomes are covered in their contributions. Third Action: Implement a 10 percent across-theboard increase in pensions. At present there are over 1.7 million

SSS Proud to be ISO Certified

Finally, the SSS efforts in providing world-class services has been recognized after it has been bestowed with the ISO 9001 Certification for Quality Management in September 2011 for its Registration and Membership processes in the Diliman Branch. Last July, a surveillance audit was conducted to ensure whether the Quality Management System has been maintained, or better yet, surpassed, and whether the minor areas for improvement cited during the last years audit have been corrected. Such audit was successfully conducted and noted significant improvements, particularly in the efforts to redesign the process, and Managements role in initiating the reforms. The goal is to have all processes in all branches ISOCertified within the next four years.

or almost a decade now, the SSS has been slowly but surely treading the path towards strengthening the Social Security Fund (SSF). Reform programs are being developed with two basic objectives: 1) to lengthen the actuarial life of the Fund and 2) to improve the benefit structure. Towards this end, the SSS is hoping for the approval and implementation of three major reform actions.
pensioners under the Social Security and Employees Compensation programs who are clamoring for a pension increase. The SSS proposes to grant a ten percent across-the-board increase, considering that the current pension levels are already below minimum wage. The last 10 percent across-the-board increase was made in 2007 after an increase in the rate of contribution by one-percentage point from 9.04 to 10.04 percent was implemented. Since then, no across-the-board increase has been effected. Doing the former without the latter would result to more unfunded liability for the SSS. In conclusion, the SSS must continue inculcating in its members the idea that social security and SSS membership is not a financial burden or a form of taxation on their income, but a form of savings for their future needs. It is also important to make stakeholders understand that ensuring the continued financial viability and strength of the Social Security Fund through the proposed reform actions will eventually redound to the greater benefit of SSS members. Towards this end, it has held continuing consultative dialogues with both management and labor groups regarding the proposed reform measures so that it can get their support and cooperation. Once it is able to implement the reform agenda and achieve higher operational efficiencies, this would eventually allow the SSS to grant a percentage increase in the pension levels to help its pensioners cope with rising costs of living. There is still much more to do for SSS to serve its current and future members more effectively and efficiently. For while social security is a State responsibility and a recognized right of every member, it does not come for free at least, not yet. Members entitlement to benefits goes hand-in-hand with their contributions to the fund.

Finding fulfillment after retirement T

nothing. In fact, if given a choice, he would want to continue his job until he reaches 65. Kung ako lang, gusto ko pang magtrabaho kasi kaya ko pa naman, he said. Pero dahil nga compulsory ang retirement sa kompanyang pinasukan ko, wala akong choice kundi mag-retire. Pinadalhan na ako ng sulat bago pa man ako mag-60 e, he added and then laughed. Carlos is a Criminology graduate from the Philippine College of Criminology (PCCR), a course that he successfully finished while supporting himself financially. To earn money for his enrollment, he did tailoring services specializing on pants. He also worked as a Security Guard at the Mijares Protective and Security Agency, Enriquez Security Agency and FTI Organic Security where he served for seven (7) years. After his graduation in college in 1990, he was promoted as Collector at the Treasury Department of FTI. Due to his excellent performance in covering the 120-hectare FTI compound, he was again promoted and became a Senior Collector. In his 35 years of being in the private sector, he said he was fortunate enough that his previous employers had been very compliant in deducting and remitting his contributions to the SSS. In fact, he qualified to avail of the SSS Sickness Benefit twice. Swerte ako na ang lahat ng naging employer ko ay matapat namang naghulog ng kontribusyon ko sa SSS, he exclaimed. Hindi ko na nga na-monitor yun, basta nagtiwala na lang ako na hinuhulugan nila ako, he added smiling. May mga contributions din akong hindi nai-post, pero agad namang naaksyunan ng SSS ang sitwasyon ko. Masaya ako dahil napapakinabangan ko na lahat ng pinaghirapan ko noon, at ngayon nga ay tumaas pa ang pensyon ko. May nagagamit akong pangsuporta (financially) sa mga anak at apo ko. Salamat sa SSS, he noted. Aware of the benefits that a member is entitled to through active membership with the SSS, Carlos also sees to it that he regularly pays for the SSS contributions of his househelper and five store helpers. Gusto kong maranasan din nila kung anong nararanasan ko ngayon. Wala na akong masyadong iniisip pagdating sa mga usaping pinansyal. Makakapamasyal ako kung kailan ko gusto, pero darating din tayo diyan. Gusto ko ngang umuwi sa Surigao dahil matagal na akong hindi nakakauwi doon. Hahanapan pa natin ng oras dahil hindi natin basta-basta maiwan ito (store), he said. Ang mahalaga, kahit na hindi ko pa ma-enjoy ang retirement years ko, hindi nagkulang ang SSS na ibigay ang benepisyo ko. Kuntento na ako doon, he concluded.

here is an adage that says, Life after retirement is the best of all you got to enjoy everything, including your time, money (if you worked hard during your younger years) and family. You reap the fruits of your sacrifices after long years of struggling to survive, to raise a family, establish your own business, or prepare for your retirement. As a senior citizen, you now enjoy discounts from pharmacies, food establishments, movie houses, hospitalization, groceries and transportation. You get to travel wherever you want (if your health condition permits you) and be with the people that you want to spend time with. Perhaps thats the reason why most people look forward to the big day the day of their retirement. But for a retiree like Mr. Carlos Natad Ochada, that has not been the case. The 61-year old retirement pensioner of the SSS, who was born in Bacuag, Surigao del Norte on March 8, 1951, says in all honesty that he is yet to enjoy his retirement years. After retiring in 2011 at the age of 60, he focused his time and attention in helping his wife with their small business (a sariKahit na hindi ko pa ma-enjoy ang retirement years sari store). Like a typical retiree, he loves to move ko, hindi nagkulang ang SSS na ibigay ang benepisyo around a lot. He cannot ko. Kuntento na ako doon, says 61-year old retirement pensioner, Carlos Ochada. be in just one place doing

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NEWS UPDATED DAILY

Monday, September 3, 2012 VOL XXVI ISSUE 27 ISSN0116-3930

S3/1-6

EDITOR Judy T. Gulane

Finding the right revenue model for social media

Mark Zuckerbergs honeymoon with Wall Street did not last long. Since Facebooks initial public offering in mid-May, shares have fallen by 58% to $40.8 billion. Last week, its stock dipped below $20 a share with the expiration of a lockout barring the companys initial investors from selling their holdings. Mobile games developer Zynga also has fallen off a cliff since its IPO; the companys market cap has plunged by 81% from its peak as flaws in its business model emerged. Groupon, whose shares have struggled amid questions about its viability, fell even further down 85% to $3.1 billion. CEO Andrew Mason might be kicking himself for turning down Googles $6-billion buyout offer. Investors, it would seem, are giving a collective thumbs down to social networks. Yet investors across the board also tend to move in tandem, often throwing away the proverbial baby with the bath water. For example, a single piece of bad news about a company can tank shares of competitors in the same industry a malady that has afflicted social networks as well. While investors might lump Facebook, Zynga, Groupon and their ilk together, these companies are not replicas of each other. All offer an element of social networking, but only Facebook is a pure social network and, with its nearly one billion users, is a unique entity unto itself. As such, experts suggest caution when making generalizations regarding the plight of social networks based on Facebook alone. What is a social network? At its most basic, it is a group of individuals wishing to connect to each other digitally in order to socialize. Facebook users want to know what their friends, relatives and acquaintances are doing. The companys main purpose, as Mr. Zuckerberg himself has often noted, is to make the world more open and connected. Zynga is a developer of games that use social networks to connect players. Its main purpose is gaming, not socializing, although that can occur through games. Groupon uses the power of the collective to get bargains. But the purpose of joining Groupon is to purchase products and services, not to socialize. Twitter is more similar to Facebook, although its follower approach makes it a quasi-social network. LinkedIn members use the platform to socialize and network professionally. Investors might be punishing most of these companies too harshly for not getting their financial ducks in a row as they test different ways to monetize their businesses. Wall Street does hate uncertainty, experts point out. But the decline could be merely a short-term effect, given that the concept of social networks is fairly new, and business models are still being fleshed out. Its clear Facebook and other social networks havent figured it out yet, says Wharton management professor Ethan Mollick. Things are stacked against them in the short term. The Facebook Model Typically, the early focus of social networks is to build up a base of users quickly by offering their services for free. But once these networks gain traction, costs to serve the users escalate. The companies then face the dilemma of figuring out how to make money from their many followers without alienating them with too many ads or suddenly charging for basic services. It can be a tricky balancing act. Its a double-edged sword for these social networks, notes Wharton management professor David Hsu. Once consumers are used to a revenue model, its very difficult to change it. Social networks, Mr. Hsu says, should have a monetization path in mind at the beginning for a smoother transition. Its important to think through how to make money from the start, he adds, pointing to the digital revenue models of The New York Times and The Wall Street Journal as examples of how tough it is to switch business strategies once readers are used to a certain model. The Times faced a consumer outcry when it decided to charge for online content that used to be free, he says. The Journal, however, has never faced such a backlash because readers have always had to pay to access its content on the web. Facebook is attempting to modify its business model as well. Currently, nearly all its revenue comes from advertising. Can it stay that way? It can work, but it is always a good idea to supplement that with subscriptions, says Wharton marketing professor Pinar Yildirim. Whether or not the social network will implement some sort of paid subscription plan, it certainly has been busy diversifying its sources of revenue. In 2009, around 98% of total revenue came from ads. But the proportion fell to 95% in 2010 and got whittled even more in 2011, to 85%. Last year, users buying digital or virtual goods on Facebook, along with fees from other services, generated the remaining 15% of revenue, according to Facebooks registration statement filed with the Securities and Exchange Commission (SEC). Still, since advertising remains the main revenue driver for Facebook, the company is working to rev up its ad engine even more. For example, it is testing the Facebook Ad Exchange, which lets marketers

Money from friends:

bid in real time for their ad to appear on a web page while an Internet user is visiting it. Based on third-party data about the user, certain marketers may spot a target customer and decide to bid more aggressively for their ad to appear. Facebook also recently started rolling out Sponsored Stories, where ads contain comments of users who like certain products or services. However, the company is being sued for allegedly violating a California statute that bans the use of a persons name or photo in a paid ad without consent. In addition, Facebook is working to make ads more relevant, with a measurable return on investment. It has partnered with Nielsen to demonstrate that people remember its ads better. Facebook ads drive 98% better ad recalls and 31% higher brand awareness than non-Facebook online ad campaigns, said COO Sheryl Sandberg during a recent earnings conference call with analysts, citing studies of more than 500 ad campaigns. That is not surprising since people are more likely to remember a message that comes from a friend. In addition, she noted that Facebook is making progress on measuring how its ads lead to actual sales. An independent analysis of 60 campaigns showed that 70% delivered a return on ad spending of three times or better than other ads while about half of these campaigns returned five times or better, Ms. Sandberg said. For example, Electronic Arts spent $2.75 million promoting the game Battlefield 3 on Facebook and attributed $12.1 million of sales to these ads. That translates to a 4.4 times return on their ad expenditures, she added. Advertisers remain cautious. General Motors famously yanked its advertising from Facebook earlier this year, saying its ads there did not boost car sales. The Wharton, S3/ 3

2/S3

Monday, September 3, 2012

Stock picks for the week

Aboitiz Power Corp. (AP) Recommendation: Hold Brokerage firm AB Capital Securities, Inc. has placed a hold tag on shares in Aboitiz Power Corp. , as the stock is nearing its fair value. We estimated the stocks fair value at the P37.21-per-share level and given its current price, the upside is only 10%, analyst Gregg Adrian R. Ilag said, adding that investors who are looking for favorable risk and reward may opt to wait for a pullback before buying the stock. The analyst noted that based on APs fundamentals, a favorable entry price would be at the P32.5-pershare level, where investors can get a 15% upside. The stock gained 0.89% or P0.30 to close at P34 apiece last Friday. Mr. Ilag also noted that Aboitiz Power shares have been trading at a premium, since its price-to-earnings
140

Benguet Corp. (BC) Recommendation: Neutral Despite a hike in profits, Benguet Corp. got a neutral tag from Accord Capital Equities Corp. given the general uncertainty in the mining sector. While there may be a growing number of reasons to buy into BC, there are offsetting considerations metal prices, low market liquidity, and the uncertainty over the mining sector policy in general that serve to temper the near-term outlook, said Accord Capital analyst Justino B. Calaycay, Jr. Taking out extraordinary gains, Benguets core income accelerated to P91.9 million in the six months ending June from P31.1 million in the same period last year. From a trading standpoint, Mr. Calaycay said: BC isnt exactly a liquid stock, but it appears rather cheap given a trailing 12-month price-to-earnings (P/E) ratio of 3.96 times, which is below the sectors 10.2 times.

130

San Miguel Corp. (SMC) Recommendation: Hold First Metro Securities and Brokerage Corp. is advising investors to hold on to shares in San Miguel Corp., despite the stocks downward trend. Technicals are still bearish as the stock has been on a downtrend since late 2011 [However, there is] no compelling reason to buy, said research analyst Ghia Paula L. Yuson. [P]lus, the current market sentiment is rather weak, she added. The higher-than-expected 5.9% growth of the economy in the second quarter had little effect on trading as many investors remained cautious, analysts said. San Miguel posted P14.1 billion in net income during the first half, 31% higher than the year before. SMC shares closed at P112 apiece last Friday, higher by P0.50 from Thursday. Ms. Yuson pegged the stocks immediate support at

135

125

PSEi

115

PSEi

120

PSEi

110

100

105

95

AP

85

BC

90

SMC
75
August 31, 2011 = 100 August 31, 2011 to August 31, 2012 Source: Technistock

80
August 31, 2011 = 100 August 31, 2011 to August 31, 2012 Source: Technistock

70
August 31, 2011 = 100 August 31, 2011 to August 30, 2012 Source: Technistock

(P/E) ratio of 11.5 times is higher than the power generating industrys average P/E of 10.59 times. The analyst placed the stocks immediate support at P33.50 and resistance at P34.40. Judy Dannibelle T. Chua Co

Shares in Benguet last closed at P24 apiece, up by P1.10. Mr. Calaycay pegged the stocks immediate support at its 30-day low of P22.50 and its near-term resistance at P25, its 30-day high. Karen Joyce Q. Ang

P111, second support at P110, and resistance at P113 per share. SMCs price-to-earnings ratio is at 10 times, lower than its peers 15 times and the markets 15.3 times. Carmina Angelica C. Valeroso

Taiwan agrees to yuan clearing

TAIPEI Taiwan signed a longawaited pact on a clearing system for the Chinese yuan on Friday, a step that could help it grab a role in the lucrative internationalization of the yuan, while pulling closer together the two rivals financial systems that have lagged behind burgeoning business ties. With China now Taiwans top trading partner, the islands financial institutions have been clamoring to get into the yuan business, mindful of the head start enjoyed by their Hong Kong rivals, to help them into a growing market to offset a mature one at home. Taiwans companies, meanwhile, want to be able to tap yuan funding sources to boost their mainland businesses and avoid the current system of first having to convert either currency into US dollars during trade transactions. Analysts have also said the pact, three years in the making, will eventually mean that ordinary Taiwanese can trade the yuan at local bank branches. The signing of the MoU... marks an important milestone for cooperation between cross-strait monetary authorities, Taiwans central bank governor, Perng Fainan, told a media conference. He added the pact was a first step, with much work left to do. Business ties between rivals China and Taiwan have boomed as the island has pursued policies of economic rapprochement. But the financial sector has lagged behind, in part due to acute sensitivity in Taiwan to a presence in the sector by China, which still has a stated aim to take Taiwan back. The agreement will allow Taiwan banks overseas branches to do interbank business in yuan from this week, Mr. Perng said, though it achieved less than banks and analysts had expected. They have not even decided who the clearing banks will be on both sides. And theres no timetable for when to allow the yuan to trade in Taiwan either, said an analyst at a US brokerage. Apparently, China did not give Taiwan everything it wanted, he said, asking not to be identified as he was not authorized to speak to media. Nevertheless, Taiwan has expressed a desire to be a center for offshore yuan trading, and last month the Taiwan head of Chinas Bank of Communications (BoComm), one of only two mainland banks with branch status in Taiwan, said he thought the island was in a good position for this. In another sign that financial ties may be drawing closer, Taiwans regulator said earlier this month it is considering allowing brokerages into the tightly controlled foreign exchange business to help them expand in the yuan business. Taiwan, S3/ 3

REUTERS

An agreement between Taiwan and China will allow Taiwanese banks overseas branches to do interbank business in yuan.

The fast-evolving banking industry in Asia-Pacific

Jeffrey Tang
The year 2011 was another successful one for banks in Asia. Based on our analysis of large regional banks, we saw a compound annual growth rate (CAGR) in profit before tax of roughly 10% since 2007. Despite these positive results, it has become more difficult for banks to take advantage of emerging markets in the region. We are seeing tougher financial regulations, increased competition from global banks and higher operating costs that are forcing firms to rethink their reward strategies. Tougher financial regulations Regional banks are facing tougher financial regulations as more stringent capital requirements and liquidity ratios are introduced in response to Basel III. In China, for example, the minimum capital adequacy ratio has been raised to 11.5% for financial institutions of systematic significance, and several banks have recognized gaps in meeting this. These gaps will increase the focus on performance, and may affect the selection of performance measures and targets. They will also affect regional firms ability to compensate in line with global banks, creating challenges for regional institutions to compete for talent on compensation basis. As only some regulators in Asia are following European guidelines on sound compensation practices, locally parented banks operating across markets need to carefully balance the need to adhere to home country guidelines with differing compensation trends in other markets where they operate. Higher operating costs Driven by inflation, the willingness of companies to pay a premium to attract staff and an increasingly mobile work force, compensation in key emerging markets has increased dramatically over the last few years. As a result of the mobile talent pool, labor cost advantages previously enjoyed in certain locations are weakening. This is directly affecting geographic expansion strategies as firms look to tap into growth markets in a much more selective manner. Median staff costs for a number of major regional banks, as percent of pretax/pre-C&B profit, picked up in 2011. However, they remained below pre-crisis levels as profit growth outpaced compensation costs. This may suggest increases in work force productivity, as well as overall operational efficiencies. Looking ahead In response to these challenges, banks are considering changes to strategic business and financing approaches. In order to comply with tougher financial regulations, banks have sought ways to boost their capital ratios. A large Chinese bank, for example, has received approval to issue both A and H shares. Another bank has introduced its first subordinated bonds. We may see additional banks follow similar approaches. In addition, more banks are pursuing M&A activities to expand their regional presence, increase profits, diversify or refocus their product mix, and/or reduce costs. Over the last nine months: a Singapore-based bank acquired a majority stake in an Indonesian firm to enter this fast-growing market; a north Asian bank acquired a multinational companys finance arm operating in China; and paving the way to a much more focused operation, a global universal bank has agreed to sell its general insurance units in the region. Through 2012, the business environment will likely prove to be more challenging. Banks will be expected to continue to look for ways to tap into Asias limited talent pool to gain or retain access to this leading growth market. They will need to pay closer attention to businesscritical HR activities and find new ways of gaining a competitive advantage. As a result, we expect to see an increased focus on talent retention and engagement, particularly in higher growth markets where salary increases are likely to remain in double-digits and competitive compensation becomes an expectation. Mr. Tang is from the Talent and Rewards business segment of Towers Watson. For more information, call (02)902-0777 or visit www. towerswatson.com.

Monday, September 3, 2012

S3/3

Taiwan,
S3/ 2 In a statement to Chinas official Xinhua news agency, Yang Yi, spokesman with the State Council Taiwan Affairs Office, said the clearing system will lower the cost of currency exchange and the risk of exchange rate fluctuation for businesses and people on both sides. It will facilitate cross-strait investment and trade and expand economic cooperation, he said. The yuan is still tightly controlled by Beijing, but Chinese leaders say they are prepared to gradually relax their grip as they free Chinas capital account, grow its financial markets, and oversee a yuan that they aim to be basically convertible as early as 2015 and, further down the road, a global currency on par with the US dollar. Reuters

Banks pin hopes on AIA sale amid poor year

HONG KONG As American International Group (AIG) becomes free next week to sell a $7.6-billion stake in former unit AIA, deal-starved bankers in Hong Kong are jostling for a role in what may be Asia-Pacifics biggest stock market event of the year. A lock-up agreement preventing the US insurer from selling the stake expires on Sept. 4. If AIG does decide to sell the entire 18.6% stake, the deal would be Asias biggest-ever block offering, ahead of Vodafone Plc.s $6.6-billion sale in China Mobile two years ago. A role in the AIA Group Ltd. selldown could offer a major financial boost to the banks, in the form of a substantial fee for a days work, and a significant increase to their deal rankings heading into the final quarter of what has been a dismal year. AIG CEO Robert Benmosche has hinted previously the stake will be sold after the lockup date expires, though he has not specified how much or when. An AIG spokesman in New York declined to comment for this story. AIG could decide not to sell anything or it could sell off a small chunk. But sources with knowledge of the matter say the investment banking industry is preparing for the US insurer to unload the entire lot. Everyone is running around to be a part of it. Most people expect AIG to clean out its position, one financial institutions group banker said. Bailed-out AIG spun off two-thirds of AIA in 2010, raising $20.5 billion in the worlds third largest IPO ever at the time. AIG agreed to certain restrictions on its remaining stake and sold a chunk in March, raising $6 billion. MINOR TIFF An AIA transaction would come amid a slump in equity deals in Asia-Pacific, where volumes so far in 2012 are down 33% to $98.2 billion, according to Thomson Reuters data. UBS is the regions top stock underwriter year-todate, followed by Goldman Sachs and Citigroup. Revenues across Asia at investment banks, which in a year can hit several hundred million dollars, have been dampened, as stock offerings com-

Wharton,
S3/ 1 Wall Street Journal noted that GM spent a comparatively miniscule $10 million on Facebook out of a total $1.8-billion ad budget in 2011. (GM reportedly later began talking with Facebook about resuming the ads.) It did not help that around the same time, UK digital marketing agency Greenlight released a survey showing that 44% of respondents never click on a Facebook ad or sponsored listing, and 31% rarely do so. Today, nearly every one of the Global Ad Age 100 advertisers spends with us every quarter, Ms. Sandberg stated during the earnings call. But to date, most only allocate a small slice of their budget to Facebook even though their customers spend large amounts of time using our service. That is not to say that ad revenue models rarely work out. They can be the main revenue source for a business, depending on the users purpose in visiting the Web site or mobile app. Google thrives on ad revenue because when people search for information, products or services, they are open to purchases. Therefore, it is a logical place for ads. With pure social networks, people visit the sites to talk to other people. They are not there to make purchases, although it could happen. Consumers who go to Facebook arent there to buy anything, Ms. Yildirim notes. That is one reason why Facebook has a tougher time convincing advertisers to spend money on its platform. In contrast, Google and even Yahoo, with all its troubles, remain must-buys for online ads. Facebook sees the problem and is attempting to invent a revenue model for social networks that has never been seen before. Were a completely new kind of marketing. Were not TV; were not search; we are a third medium, Ms. Sandberg said. And that presents a challenge because the messages that talk at consumers on other platforms need to really be adapted and changed to be more inclusive. The right ad on TV or on search is the wrong ad for Facebook. Facebook marketers need to learn how to make their ads really a two-way dialogue with consumers. Mr. Zuckerberg thinks social ads are the future. The best type of advertising is a message from a friend. Facebook wants to offer advertisers the best tools to create ads that are social. We believe that the more our advertising includes interesting content from people you care about, the more marketers will be able to create advertising that adds value to peoples experience on Facebook, he noted during the same conference call. For example, Mr. Zuckerberg said, if he likes a restaurant and he shares it on Facebook, thats likely a more convincing ad than anything the restaurant would produce on its own. Thats an example of aligning social activity and ads. This may be true, but the quality of the tips can be degraded if they come from folks you barely know, Ms. Yildirim points out. Many people accept Facebook friend requests from acquaintances, or even someone they have never met. Facebook may be taking the lead in creating a new ad revenue model for social networks, but that does not mean its efforts can be copied successfully. At least for now, there is no other social network like it on earth. Indeed, where other social networks may fail, Facebook could succeed due to its sheer size, says Mr. Mollick. They have so much data available on customers [that] there should be a way to make it work. Scale is critical to Facebook because the company depends mainly on advertising. But businesses where socialization is secondary to its main purpose often have a greater variety of revenue models beyond just advertising and subscriptions. Because Groupons main business is to sell discounted deals, its problems are different from Facebooks. Groupons business model is under fire because it can be copied easily. Moreover, it attracts shoppers who flit from place to place for discounts but rarely become regular customers. It is highly unlikely that they will become loyal consumers, or come back for repeat purchases, Ms. Yildirim says. Zynga is a different story. Its challenge is to continue to be creative with games and reduce dependency on Facebook, she adds. Ads, subscriptions, selling of consumer data to third parties, revenue from app developers and direct sales of goods are all sources of revenue for most social networks, Ms. Yildirim notes. Some networks like Wikipedia rely on donations. Moreover, revenue-sharing models exist where the consumer gets paid to create viral content, such as Metacafe. Most networks are still experimenting to decide what revenue model works best for them, she says. There is no single one-fits-all model. Facebook at least is treading carefully and working creatively to figure out the right model for its business, Mr. Mollick states. Theres a degree to which we should be happy that Facebook is taking its time to make this work right. The social networks the way we see them now are a relatively new thing in the world. They have value, but its not clear how we are going to extract it. That doesnt mean there isnt a way. How LinkedIn Did It One major US social network that has not suffered much in the stock market since its IPO is LinkedIn. Its market cap stands at around $12.4 billion, down slightly from the all-time peak of $13 billion. Founding member Lee Hower, now a venture capitalist, says the business model for the company arose organically. Since LinkedIn was aimed at job seekers, networkers and recruiters, it was logical to charge them to get access to expanded tools on its site, with the basic membership staying free. Businesses would pay to post jobs, access a suite of recruitment tools and search user profiles for potential job candidates. Employees would pay a subscription fee to get expanded job listings and contacts. In 2011, hiring services comprised half of LinkedIns revenue. Advertising, including display ads, took up 30% of revenue while the rest came from premium subscriptions, according to LinkedIns latest annual report filed with the SEC. Mr. Hower, Reid Hoffman and other colleagues from PayPal started LinkedIn in 2002. Back then, Mr. Hower said, companies such as Monster.com dominated online job searches. But LinkedIn decided to add a social component to its jobs site something Monster did not do and that feature made the service indispensable to users, prompting them to visit more often. People created professional profiles and they linked to other people on the site for networking. If you think of Monster or a job board, end-users only use it when they are thinking of looking for a job, Mr. Hower points out. Not so with LinkedIn. Making the site a social network was a risk. According to Mr. Hower, the founders believed it would be a powerful tool, but as trailblazers, they had to invent a new business model that melded jobs services with social networking at a time when the idea was totally new. There was no real notion of social networking. Facebook didnt exist, Mr. Hower notes. We created a unique business model that was suited to a product that we built. As they innovated, they tinkered with LinkedIns features. They initially thought that adding photos to user profiles on the site would be a violation of privacy. Thats something thats changed over time, Mr. Hower says. As LinkedIn became more widespread and [better] known among white-collar professionals, people had a clear sense of the brand, and it was less of an issue. Another change was to let the public access the profiles. Back then, you could only search people you were connected to. Via the friend of a friend, you could view that persons profile and contact them. There wasnt a notion of a public profile. Now, it is a common feature. One thing that did not change was a decreased emphasis on advertising revenue, a strategy that fits well with LinkedIns business model. Unlike Facebook, people on LinkedIn visit the social network to access the ads [i.e. job listings], Ms. Yildirim says. Both from the employers and employees [point of view], it makes sense to be on LinkedIn and pay to advertise jobs and get access to people. But LinkedIn should ensure it can handle more growth, she notes. Similar to Facebook, if LinkedIn grows too large too fast, it may start to suffer from the clutter of people and jobs. Mr. Mollick agrees: LinkedIn has shown that it can monetize, but it could still run into the limits of exponential growth that Facebook is worried about. Mr. Hower says that at the time LinkedIn started, the online ad market was much smaller than it is today. Online advertising had gone through an upheaval an upsurge in the late 1990s, followed by a decline in early 2000s during the dot-com crash. Given the ad environment and LinkedIns purpose in connecting professionals and recruiters, the founders decided on a business model that charges workers and companies for expanded access to the sites career services. LinkedIn would act as a repository of professional profiles for use throughout an employees career within a dynamic social network. It was a revolutionary concept. Mr. Hower calls it resume 2.0. They were not always sure their ideas would work. With any tech start-up, you have both confidence in what youre trying to do and also some uncertainty, he says. If we look back to our original business plan, a lot of what we hoped might happen has come to fruition. While LinkedIn decided not to rely heavily on ad revenue, it does not mean the business model will be problematic for social networks in general. As long as a site can reach millions of users, ads will come in time. Advertisers lag, Mr. Hower notes, but they do come. First published on Aug. 29. Reproduced with permission from Knowledge@Wharton <http:// knowledge.wharton.upenn.edu>. 2012 The Trustees of the University of Pennsylvania. All rights reserved.

www.en.wikipedia.org

Entrance of AIA Tower at the corner of Electric Road and Oil Street, near the former clubhouse of the Royal Hong Kong Yacht Club.

mand the highest fees. An IPO typically offers 3% of the proceeds. A block deal can offer a similar payout, but fees on such a deal are rarely disclosed. Assuming even a 1% fee, a dozen banks could split around $80 million, with the larger payouts going to the lead bookrunners. But a block sale is riskier for banks, as it requires them to buy the shares first before distributing them. When demand flops for a block sale, banks are forced to sit on the shares, taking an immediate paper loss. Bankers had pushed hard for the March AIA mandate, in a deal so

competitive a spat occurred when the time came to assign league table credit. Deutsche Bank and Goldman got the lead roles on the deal, specifying on term sheets they were the active coordinators and bookrunners. That led other banks to complain the term sheets implied the rest were passive, and a major push ensued to revise the credits. In the end, all 11 banks involved got league table recognition, with Deutsche and Goldman taking a greater portion of the fees. AIA, S3/ 4

4/S3

Monday, September 3, 2012

ASEAN at the crossroads

market monitor
J. Albert Gamboa
SIEM REAP, CAMBODIA Trade and economic ministers of the 10-member Association of Southeast Asian Nations (ASEAN) converged in this tourist haven last week with their counterparts from Australia, Canada, China, India, Japan, New Zealand, Russia, South Korea, and United States. Conspicuously absent was European Union Trade Commissioner Karel de Gucht, who had met last April with ASEAN trade ministers in the Cambodian capital of Phnom Penh. Ce lebrating its 45 th anniversary last month, ASEAN was originally formed as a geopolitical and economic organization on Aug. 8, 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Later it was expanded to include Brunei, Burma, Cambodia, Laos and Vietnam. ASEAN is home to some 600 million people comprising 8.8% of the global population, with a combined gross domestic product of $1.8 trillion. If it were a single economic entity, ASEAN would rank as the ninth largest in the worldnext to the US, China, Japan, Germany, France, Brazil, United Kingdom and Italy. This year marks the first-ever hosting of the ASEAN Leaders Summit and related meetings by the Kingdom of Cambodia. The countrys coming-out party on the world stage was marred last July during the ASEAN foreign ministers meeting. For the first time in ASEAN history, there was a failure to issue the traditional joint communiqu ostensibly due to bilateral conflict between several member-states and China. Philippine Department of Foreign Affairs (DFA) Secretary Albert del Rosario had discussed the then ongoing Scarborough Shoal standoff during the foreign ministerial sessions and wanted this to be reflected in the joint communiqu, but the Cambodian chairman refused. The DFA deplored the non-issuance, which was perceived to be a capitulation to the neighborhood bully. Apparently, the Phnom Penh government is beholden to China, which is funding many big-ticket projects in this emerging nation. Beijing has maintained close ties with the regime of Cambodian Prime Minister Hun Sen, who has been in power since 1997. State-owned Chinese firms and private companies have investments in more than 200 major Cambodian projects spanning agriculture, mining, oil refineries, automobiles, ports, garments and tourism. The Export-Import Bank of China has announced plans to invest in two mega-projects that would modernize the Cambodian telecommunications and steel industries. International tourist arrivals to Cambodia reached 2.8 million in 2011, with the bulk traveling to Siem Reap province site of the worlds biggest religious complex, Angkor Wat, and other massive temples. The Angkor region was the seat of the Khmer Empire that reigned over mainland Southeast Asia from the ninth to the thirteenth centuries. During the ASEAN economic ministers meeting at the Apsara Angkor Resort here, the first ASEAN-US Business Summit was launched. The American delegation was led by US Trade Representative Ron Kirk, President Barack Obamas chief commercial adviser. Mr. Kirks participation sent a strong signal to ASEAN leaders about Americas commitment to deeper economic engagement with the region, most likely as a counterbalance to the strong presence of China. A significant development was the launch of the ASEAN Trading Link, a cross-border system linking key markets in the region. ASEANs capital market regulators have approved the projects first phase involving the Malaysian and Singaporean stock exchanges starting next month. They have also agreed on a road map for the integration of the regions capital markets by 2015. Thailands stock market will be linked soon after, followed by the Philippine, Indonesian and Vietnamese bourses. The ASEAN Trading Link is similar to South Americas Mercado Integrado Latinamericano (MILA), a joint stock exchange between Chile, Colombia, and Peru launched last year. The Brazilian and Mexican bourses recently started negotiations to join MILA, which currently involves order routing and share trading to boost liquidity in the Santiago, Bogota and Lima stock markets. Foremost on the agenda of the regions trade ministers was the ASEAN Economic Community (AEC), which seeks to brings about the free movement of goods, services, investment, skilled labor, and capital flow within Southeast Asia. According to the Washington-based Center for Strategic and International Studies (CSIS), ASEAN has reportedly completed over 70% of the AEC blueprints goals as of 2011 but independent observers have raised questions about whether the organization would fully achieve its commitments in the next three years. CSIS said the AEC would boost the regions economic competitiveness by consolidating the 10 economies into a single market. As a foreign policy think tank, CSIS was founded during the height of the Cold War 50 years ago at the Jesuit-run Georgetown University. It triggered US congressional hearings on the split between Soviet and Chinese communist leaders, as well as the first public hearing on the Cambodian genocide which revealed the extent of the Khmer Rouge regimes so-called killing fields. When the AEC finally takes off as scheduled in 2015, it is envisioned to become a highly competitive region of equitable development fully integrated into the global economy. By then, the ASEAN Free Trade Area would also be in place after the 10 member-countries have made progress in lowering intraregional tariffs.

photo

afp

Brokerages are allowing top-tier clients to put up expensive works of art as collateral for loans.

Brokers let clients borrow against their Bruegels

NEW YORK Who says that Picasso on the wall cant help earn its keep? As part of an effort to woo the ultrarich, US brokerages increasingly are offering loans collateralized by works of art to their most favored clients, offering a service that was once solely the province of mahogany-walled private banks. Earlier this month, UBS Wealth Management America unveiled to its brokers a plan to offer loans of up to $150 million collateralized by works of art, rare musical instruments and fine silver. Megan Stinson, a UBS spokeswoman, said the service was started at the request of brokers. Prior to this, UBS WMA had no way of solving for certain ultra-highnet-worth client requests where art was part of the collateral equation, she said. We have significant investor appetite. The move is the latest sign of brokerages increasing focus on top-tier clients. Over the past year, Merrill Lynch, Morgan Stanley, Wachovia Securities, UBS and others have changed the way they pay brokers to encourage them to abandon less affluent clients. This year, Merrill stopped paying brokers on accounts of less than $250,000 a household. Many of its rivals have joined it in referring such clients to call centers and other lowtouch services. FORGOTTEN ASSET CLASS Although the UBS loans are marketed to brokers through the securities-backed lending department of UBS Bank USA, they are made and underwritten by Emigrant Bank Fine Arts Finance, a subsidiary of privately held Emigrant Bank, which since 2005 has employed a small group of art world experts to assess collateral values. Emigrant pays a referral fee for each client sent by UBS. Andy Augenblick, president of Emigrant Bank Fine Art Finance, said collectors and dealers looking for working capital are traditional borrowers, but real estate investors and private business owners have grown increasingly interested in the loans. Theres a growing awareness that a lot of wealthy individuals own art, which has been kind of the forgotten asset class, he said. Private banking units of Citigroup, JPMorgan Chase and Bank of America have long offered art-backed loans to very wealthy clients who buy a variety of trust, estate and banking services. They tend to make loans of up to 50% of the appraised value of artwork, with appraisals primarily done by auction houses or in-house specialists. In most cases, borrowers are allowed to retain possession of the artwork. Banks in the business offer relatively uniform interest rates art loans are currently made at about 5.25% but specialists outside private banking such as Emigrant offer longer maturities than the one- to three-year preference of the private banks. They also tend to have higher loan minimums than the $1 million floors that Emigrant and other specialists accept from UBS and other financial institutions. Until recently, few brokers or banks were in the business because of the expertise needed to evaluate the volatile market conditions in fine and decorative art and the complex legal issues related to ownership certification. Mr. Augenblick said a growing number of financial institutions want to compete with the pioneers of artbased lending such as Citigroup. He declined to name brokerage industry clients besides UBS but said brokerages are increasingly aware that some $50 billion of art is traded annually while traditional asset management fees are shrinking after more than four years of rock-bottom interest rates. The referral arrangement through UBSs almost 8,000 North American brokers should spur growth across the entire global art-finance industry, he said. Just 22% of private banks surveyed in 2011 by Deloitte Luxembourg said they advised clients to consider art-collateralized loans. However, one-third of respondents said they were giving thought to adding art lending within two to three years. AUCTION HOUSES AND CONSULTANTS Tighter lending controls in Europe and the United States have generated additional referrals to Emigrant, Mr. Augenblick said, as have the concerns of wealthy retirees who fear that plummeting rates are eroding their principal. Many art owners want to preserve liquidity without absorbing the heavy auction-house fees and capital-gains taxes that would come from outright sales, he said. Morgan Stanley, which boasts the biggest US brokerage force through its majority-owned joint venture with Smith Barney, makes art-backed loans through third parties but has not seen great demand for the service, a spokeswoman said. A Bank of America spokeswoman said the fine-art lending services of its US Trust private banking unit are available to any clients they make sense for. She declined to say whether art loans are actively marketed by Merrill Lynch brokers. Art owners eager for short-term cash have other options. Auction houses will advance loans on art and sculpture consigned to them for sale. Consulting services such as Art Capital Group offer loans and credit lines to borrowers with riskier art assets including those of contemporary artists, which can fluctuate widely in value though often at double-digit interest rates. Art-based loans are not without risk. Art Capital made headlines three years ago by seizing three residences and all the copyrights collateralizing a $24 million loan to celebrity photographer Annie Leibovitz that was in default. The two parties ultimately reached a settlement that returned the copyrights to Leibovitz. Merrill Lynch, now owned by Bank of America, made loans totaling $177 million in 2005 and 2006 to a jewelry dealer named Ralph Esmerian that were collateralized by gilded objects made for Marie Antoinette and Czar Nicholas II, among others. Mr. Esmerian used the same collateral to secure a $40 million loan from a different lender and was sentenced last year to six years in prison on embezzlement charges. Reuters

MANSMITH MENTORS
Josiah Go
Last July 2012, I was blessed to be invited to speak at both the Asiannovation Conference of the Philippine Marketing Association (PMA), and the Franchise Asia Convention of the Philippine Franchise Association (PFA). I talked about marketing innovation in PMA and about premium branding in PFA. In both occasions, though I presented several marketing case studies, there was a common case I presented to both groups: that of the importance of top bloggers. Consider the market research data shared by Universal McCann: website visits have dropped to 70% from 86% four years ago. This trend is not just in the Philippines but globally as well. The data was supported by another study that found that consumers found bloggers much more entertaining, creative and fun to read than one-dimensional company websites, as bloggers share their personal experiences rather than merely give information. In 2005, Procter and Gamble created a new position and coined the term first moment-of-truth (FMOT), headed by a director no less, believing it needed to win at both the store shelf (their first interaction with the consumer after stimulating demand via

Why top bloggers are getting recognized

advertising) and at home (where their products will be used) as the second moment-of-truth. Today, with the increasing popularity and affordability of smart phones, coupled with unlimited data offer of telecom companies, access to online information has become a lot easier, taking over as the new first moment-of-truth (sometimes known as the zero moment-of-truth or ZMOT). Even 45-year-old and above consumers have become a significant force using online and social media, no longer just dominated by the 16- to 24-year-old group as the heavy users. Just think about how vacations and business trips are booked online. Comments about airlines and hotels are reviewed online before purchase is done. If comments are positive, consumers tend to cross-check other sources to ensure data veracity. A single negative comment can kill a transaction. I myself dropped a hotel in China when a guest commented online the picture on the website and the actual room are very dissimilar. Did I believe the website more than the stranger? A big no; I chose to believe the stranger. Another example is the rarity of complaint letters nowadays, as they have been taken over by tweets done by disappointed customers. A top fashion designer and TV show judge once tweeted about the bad quality of the food at a restaurant owned by a top celebrity chef, which sent sales of the relatively new restaurant spinning downwards in the succeeding months. In 2011, Tumblr invited 24 major fashion bloggers worldwide to cover the New York Fashion Week (in Asia, Tricia Gosingtian of the Philippines was the only one invited); this was a strong message on the importance of bloggers. Last July 2012, SMs premium mall, Mall of Asia (MOA) had its annual mid-year sale but instead of getting movie or TV stars, MOA decided to go digital and tapped major bloggers to help promote the event, highlighting its understanding of the changing market dynamics. Months earlier, Selecta launched its highly successful Magnum ice cream, supported by celebrity bloggers to help it connect online. Today, you have Malaysian-based media management company Nuffnang managing the advertising revenue needs of many bloggers, big and small. It is currently headed by a new country manager, top Filipino blogger Abe Olandres, known for blogging technology and gadgets. You also have new local companies such as ThoughtLeaders, Inc. (full disclosure: I am chairman of the board), managing only a limited number of prized top bloggers such as Anton Diaz (food and family), Tricia Gosingtian (fashion and travel) and Vince Golangco (lifestyle). Top bloggers are now celebrities, as readers follow them regularly during their chill time and talk about them in their tweet conversations. Their revenue models include banner advertisements, sponsored blogs, talent fees, event appearances or speaking fees and the like. Companies such as ThoughtLeaders even have a Code of Ethics, requiring their blogger-talents to fully disclose sponsored blogs and banning them from using their enormous online power to attack another person negatively. Mr. Go is chairman of Mansmith and Fielders, Inc. He will be conducting the 86th Marketing Strategy and Plans seminar on Sept 13-14 and the 20 th Market-Driving Strategies on Sept. 27-28. His 13 th book, Marketing Plan in the Philippine Setting, (co-authored with Chiqui Escareal-Go) is now no. 6 on National Bookstores bestsellers list. He gives marketing tips via www. twitter.com/josiahgo.

S3/ 3 SHARES RISE AIAs shares are up 9.5% so far in 2012 and have soared about 35% since the IPO. Fund managers see AIA as a top choice to benefit from Asias growing wealth and booming demand for insurance and other financial products. The Hong Kong financial services sub-index is up 4.7% in 2012. Despite this years gains, AIA is not expensive compared to its peers. It trades at 16.3 times its 12-month forward earnings, according to Thomson Reuters data, while Asia-Pacific insurers on average trade at forward price-to-earnings ratio of 15.3. AIA shares have remained resilient despite the stock overhang issue and just a week before the March selldown, the stock came within striking distance of its all-time high. AIG sold the AIA shares at HK$27.15 in the March selldown and on Friday the stock traded flat at HK$26.55. The previous placement was done in one day and not that well anticipated by the market. Even then the stock digested the placement quite well. While this one is a little larger, it is widely anticipated and the market should not have too much trouble digesting it, said Credit Suisse analyst Arjan van Veen. Nevertheless, taking no chances, the underwriters are expected to line up a large investor or strategic buyer to take up a big chunk of the deal. Reuters

AIA,

Monday, September 3, 2012

S3/5
TRUST OFFICERS ASSOCIATION OF THE PHILIPPINES UNIT INVESTMENT TRUST FUNDS
AS OF AUGUST 16, 2012
1. TAX-EXEMPT Banco de Oro Institutional Fixed Income Fund 1604.6626000 14.8373665 4.8467892 Banco de Oro Merit Fund-Short Term Portfolio 138.7296000 5.3764715 2.2481690 Banco de Oro Merit Fund-Medium Term Portfolio 126.5535000 12.1189677 4.0630759 BPI Institutional Fund UITF 198.7300000 13.2945700 8.2525300 Odyssey Tax-Exempt Peso Fixed Income Fund 242.2100000 16.8500000 6.1300000 Odyssey Tax-Exempt Dollar Fixed Income Fund 22.3200000 13.2400000 10.2200000 Odyssey Tax-Exempt Philippine Equity Fund (UITF)* 378.5600000 8.7400000 12.6300000 UBP Institutional Tax Exempt Portfolio 152.5571960 11.1651120 4.2149980 Union Bank of the Philippines 2. TAXABLE A. Money Market Funds invested principally in short-term, fixed-income deposits and securities with portfolio duration of one year or less. Banco de Oro BDO Peso Money Market Fund 1417.7358000 3.4192335 2.1246755 Banco de Oro BDO Institutional Cash Reserve Fund 102.5161000 2.2591228 BPI Short-Term Fund 133.4000000 2.8924000 1.7932100 Odyssey Peso Cash Management Fund (UITF) 14.0400000 2.7800000 1.5900000 China Banking Corporation Chinabank Money Market Fund 1.1070560 3.0800000 1.8630000 East West Banking Corp. Infinity Money Market Bond Fund 1186.4928000 2.8613000 1.8688000 Landbank Money Market Fund 1.0097850 0.9785000 Metro Money Market Fund 1.4622910 3.4721370 2.0949740 MetroBank and Trust Co. Philippine Bank of Communications Signature Trust Fund 140.8125000 2.8751000 1.7350000 PNB Mabuhay Prime Fund 1.0605230 3.3759990 2.0681710 Philippine National Bank Philippine National Bank PNB Global Filipino - Peso Fund 1.1930160 3.4648550 2.1270040 RCBC Rizal Peso Money Market Fund (vice Dragon Fund) 1.3772020 3.1342368 1.9176505 RCBC Savings Bank Molave Fund 1.3381000 2.5992950 1.5404460 Security Bank Corporation SB Peso Ease Fund 1.1977260 2.472128135 1.4854325 Security Bank Corporation SB Secure Peso Fund 1.3558550 4.9327538 3.0458786 Sterling Bank of Asia (A Savings Bank) Sterling Money Market Fund 1.0872600 2.6084800 1.5665700 United Coconut Planters Bank United Cash Management Fund 1.1961027 2.7202429 1.6097296 Union Bank of the Philippines UBP Peso Money Market Portfolio 125.7738070 4.2815330 2.4978780 B. Bond Funds invested in a portfolio of bonds and other similar fixed-income securities with portfolio duration which may exceed one year. B.1 Intermediate-Term Funds The mandate of the fund limits the duration up to 3 years. Banco de Oro BDO Peso Bond Fund 1672.3571000 5.1427133 2.2242099 BPI Premium Bond Fund 161.0300000 5.0629600 2.2088200 East West Banking Corp. Infinity Peso Intermediate Bond Fund 1560.8391000 7.8543000 4.2372000 MetroBank and Trust Co. Metro Max-3 Bond Fund 1.6485050 6.3658670 2.4344340 MetroBank and Trust Co. Metro Invest Plus 1.5813580 3.8495080 1.3880150 Philippine National Bank PNB Mabuhay Plus Fund 1.2902120 4.3860840 2.6308150 Philippine National Bank PNB Dream Builder Fund 1.1098870 3.2891160 1.9062070 UBP Current Income Portfolio (T-Bill 91) 137.7169470 5.3334320 2.5747630 Union Bank of the Philippines Union Bank of the Philippines Infinity Prime Fund 142.2063950 5.0731050 2.0232090 B.2 Medium-Term Funds - The mandate of the fund limits the duration up to 5 years. Allied Banking Corporation Allied Unit Performance GS Fund 1.3293260 5.0022196 2.3789371 Asia United Bank AUB Peso Investment Fund 180.5400000 11.9300000 5.3000000 Banco de Oro BDO Fixed Income Fund 1731.3020000 8.0772699 3.0230963 Banco de Oro GS Fund 168.8062000 8.6540269 2.9720497 BPI ABF PBIF 181.1400000 6.1408600 3.9779600 Odyssey Peso Income Fund 112.8300000 5.510000000 2.410000000 China Banking Corporation Chinabank GS Fund 1.4112030 7.0720000 3.3080000 Metro Max-5 Bond Fund 1.6511690 8.1578430 2.8453030 MetroBank and Trust Co. Philippine Business Bank Diamond Fund - A UITF 178.2313320 26.1860000 11.0000000 Rbank Blue Peso Fixed Income Fund 134.5280910 1.7700000 0.3800000 Robinsons Bank Corp. - Trust & Investment Group Union Bank of the Philippines UBP Philippine Peso Bond Portfolio 219.1051390 8.0027440 3.9182000 B.3 Long-Term Funds The mandate of the fund allows the duration of greater than 5 years. Bank of Commerce Bancommerce Peso Trust Fund 1.4643270 1.2805250 0.0170760 Odyssey Peso Bond Fund (UITF)* 234.1200000 17.6500000 5.8300000 East West Banking Corp. Infinity Peso Long-Term Bond Fund 1261.1388000 6.3111000 2.1334000 LandBank of the Phils. GS-FI Fund 1.3764260 5.5172000 2.4666000 RCBC Rizal Peso Bond Fund (vice Unicorn Fund) 1.5383190 5.4304619 1.8664581 Union Bank of the Philippines UBP Long Term Current Income Portfolio 114.1609000 11.3568390 4.4676100 United Coconut Planters Bank United Conservative Fund 1.6229398 6.276346256 1.332518342 C. Balanced Funds invested in a diversified portfolio of bonds and stocks where investment in stocks shall be up to maximum of 40% to 60% of the fund. Banco de Oro BDO Peso Balance Fund 3219.3915000 13.6061129 13.6093001 BPI Balanced Fund 137.4500000 10.8468000 10.1450000 Odyssey Diversified Capital Fund 159.3700000 14.5600000 7.9900000 Odyssey Diversified Balanced Fund 188.8400000 11.2000000 10.6300000 China Banking Corporation Chinabank Balanced Fund 1.1726940 11.3680000 8.8370000 Gintong Sikap Secure Fund - (GSSF) 1.1945080 2.6227250 1.5571420 Development Bank of the Philippines Growth Fund 1.7924200 2.4477000 4.4059000 LandBank of the Phils. Metro Balanced Fund 2.6546090 12.2326680 11.1434010 MetroBank and Trust Co. Philippine Bank of Communications Best Balanced Fund 108.6349000 11.2038000 9.8388000 Philippine National Bank PNB Mabuhay Prestige Fund 1.2922130 5.0154490 6.8303080 Rizal Balanced Fund 1.6333800 8.9662423 9.6893686 RCBC Rbank Balanced Fund 122.3290460 2.4300000 2.5100000 Robinsons Bank Corp. - Trust & Investment Group Security Bank Corporation SB Peso Asset Variety Fund 1.7109820 19.8908848 18.8450997 Union Bank of the Philippines Unionbank Peso Balanced Portfolio 118.2271410 10.3849140 9.9663190 United Coconut Planters Bank United Balanced Fund 2.1161640760 10.151332433 10.0257731 D. Equity Funds invested substantially in equities AB Capital and Investment Corp. AB Capital Equity Fund 2.4256790 16.1559520 16.3732850 Allied Banking Corporation Allied Unit Performance Equities Fund 1.2891130 23.1718608 24.5190162 Asia United Bank-TIG AUB Equity Investment Fund 197.2900000 15.8200000 16.1800000 Banco de Oro BDO Peso Equity Fund 3373.4767000 20.1590570 20.4010763 Equity Fund 314.4759000 20.1287405 19.6795691 Banco de Oro Equity Fund 119.8800000 14.3784000 13.4690000 BPI BPI Global Equity Fund 207.9900000 4.2086000 6.1715000 Odyssey Philippine Equity Fund (UITF)* 466.1100000 6.9200000 11.3700000 Odyssey Philippine High Conviction Equity Fund (UITF)* 193.1600000 -1.0300000 5.6400000 Asia Pacific High Dividend Equity Fund 9.2300000 -0.2200000 10.0100000 Odyssey Metro Equity Fund 1.8062490 13.5088310 18.6931750 MetroBank and Trust Co. Philippine Bank of Communications Value Equity Fund 111.7010000 17.7131000 14.7162000 Philippine National Bank PNB Enhanced Phil-Index Reference Fund 1.2993840 14.9977740 18.3610340 Philippine National Bank PNB High Dividend Fund 1.0468700 Security Bank Corporation SB Peso Equity Fund 1.6507890 24.0570720 24.0628525 Rizal Equity Fund (vice Tiger Equity Fund) 2.7641690 10.8487592 12.0728396 RCBC United Coconut Planters Bank United Equity Fund 2.8827880 11.6030652 14.6373252 Union Bank of the Philippines UBP - Large Capitalization Philippine Equity Portfolio 530.4646490 20.7957100 25.3074320 3. UITFs INVESTED IN DOLLAR-DENOMINATED INSTRUMENTS A. Money Market Funds invested principally in short-term, fixed-income deposits and securities with portfolio duration of one year or less. Banco de Oro BDO Dollar Money Market Fund 129.7995000 2.0640128 1.3245622 MetroBank and Trust Co. Metro Dollar Money Market Fund 1.2485920 1.9697450 1.2450150 Philippine National Bank PNB Dollar Prime Fund 1.0140860 0.9797390 0.5808200 Philippine National Bank PNB Global Filipino - Dollar Fund 1.1753620 1.3253590 0.8219390 Rizal Dollar Money Market Fund (vice Phoenix Dollar Fund) 1.2851920 1.3255502 0.8113908 RCBC SB Secure Dollar Fund 1.2149490 7.195455075 6.828049739 Security Bank Corporation Sterling Bank of Asia (A Savings Bank) Sterling $ Money Market Fund 1.0421600 1.2395600 0.7784500 United Coconut Planters Bank United US$ Money Market Fund 1.2687606 1.3119608140 0.3001105156 B. Bond Funds invested in a portfolio of bonds and other similar fixed-income securities with portfolio duration which may exceed one year. B.1 Intermediate-Term Funds The mandate of the fund limits the duration up to 3 years. Banco de Oro BDO Dollar Bond Fund 152.9822000 4.9098014 3.8420602 BPI International Fund Plus 153.5900000 2.6191000 3.2260000 Chinabank Savings, Inc. Fixed Income US Dollar Fund 1.2684720 1.7768210 1.4088830 East West Banking Corp. Infinity Dollar Intermediate Bond Fund 130.6182000 6.5529000 5.6081000 Metro$ Max-3 Bond Fund 1.5435430 4.9797870 3.8803110 MetroBank and Trust Co. PNB Dollar Profit Fund 1.3431130 3.2688020 2.6356730 Philippine National Bank B.2 Medium-Term Funds The mandate of the fund limits the duration up to 5 years. Asia United Bank AUB Gold Dollar Fund 170.8300000 7.6200000 7.2900000 China Banking Corporation Chinabank Dollar Fund 1.4764400 6.0350000 5.2150000 Banco de Oro Medium Term Dollar Bond Fund 1.6907000 7.6330532 5.9667816 BPI Global Phil Fund 264.1300000 5.3864000 5.5043000 Emerging Market Bond Fund (UITF)*# 10.0800000 3.1700000 4.2400000 Odyssey Metro$ Max-5 Bond Fund 1.7497820 8.6875120 6.5075710 MetroBank and Trust Co. Metrodollar Asian Bond Fund MetroBank and Trust Co. Robinsons Bank Corp. - Trust & Investment Group Rbank Green Dollar Fixed Income Fund 135.7923430 4.8800000 3.2900000 Union Bank of the Philippines UBP - Philippine Dollar Bond Portfolio 1.8418470 7.4165570 5.5603760 B.3 Long-Term Funds The mandate of the fund allows the duration of greater than 5 years. Allied Banking Corporation Allied Unit Performance Dollar Fund 1.3571670 9.3548535 7.6069634 Bank of Commerce Bancommerce Dollar Trust Fund 1.8700420 13.2649680 9.8257800 BPI Phil. Dollar Bond Index Fund 172.1400000 12.3703000 9.9655000 Odyssey Philippine Dollar Bond Fund (UITF) 23.8000000 12.3700000 9.8300000 Infinity Dollar Long-Term Bond Fund East West Banking Corp. Global Dollar 1.2733810 5.4548000 4.5792000 LandBank of the Phils. Rizal Dollar Bond Fund (vice Eagle Dollar Fund) 1.5138960 7.5448537 5.9926360 RCBC

6/S3
PHILIPPINE DEALING & EXCHANGE CORPORATION GOVERNMENT SECURITIES BOARD SUMMARY
(as of AUGUST 31, 2012)
Tenor Inst Name Coupon Year to Maturity Maturity Volume Last Traded Weighted Open High Low Last Date/Time Average Yield Yield Yield Traded Date Yield on Last (in M pesos) Traded Date
on

Monday, September 3, 2012

Japan,
S3/ 5
Prev. Close

INSTITUTION

UITF NAME

NAVPU

% YOY

% YTD

INCEPTION DATE
March 6, 2007 April 4, 2005 January 7, 2004 January 27, 2004 January 7, 2004 October 1, 2007 April 1, 2005 April 4, 2005 April 25, 2005 February 20, 2009 March 1, 2007 March 27, 2012 April 6, 2005 August 4, 2005 September 27, 2010 January 11, 2006 March 28, 2005 April 25, 2005 October 9, 2006 July 1, 2005 April 7, 2009 November 17, 2006 February 8, 2006 April 1, 2005 April 4, 2005 February 18, 2005 April 5, 2005 April 26, 2005 September 27, 2010 December 3, 2008 June 1, 2005 September 29, 2006 February 16, 2006 May 3, 2005 April 29, 2005 May 3, 2005 April 21, 2005 October 1, 2007 March 24, 2006 April 6, 2005 Nov. 14, 2005 March 17, 2006 January 12, 2004 March 10, 2005 May 5, 2003 March 1, 2007 March 13, 2006 March 28, 2005 June 1, 2005 May 27, 2005 January 31, 2005 December 4, 2006 May 12, 2006 February 18, 2011 August 8, 2006 March 24, 2006 April 8, 2005 September 8, 2010 June 19, 2009 March 28,2008 October 9, 2006 February 15, 2011 March 5, 2007 December 4, 2006 February 26, 2007 May 4, 2006 June 15, 2005 May 3, 2005 January 31, 2005 August 30, 2004 May 5, 2003 February 1, 2007 May 20, 2008 March 1, 2007 September 8, 2010 June 15, 2012 February 1, 2010 March 28, 2005 January 15, 2007 March 1, 2005 April 29, 2005 March 1, 2007 March 7, 2011 December 23, 2005 March 28, 2005 July 1, 2005 April 7, 2009 September 15, 2005 April 29, 2005 November 2, 2005 March 23, 2006 March 18, 2005 April 5, 2005 October 03, 2005 May 3, 2005 September 9, 2005 May 3, 2005 August 30, 2004 April 25, 2005 April 28, 2005 April 7, 2006 June 1, 2004 June 1, 2006 March 11, 2005 December 31, 2006 May 5, 2003 March 1, 2007 March 13, 2006 March 28, 2005

reuters

A man stands in front of an electronic board displaying Japans Nikkei share price in Tokyo on May 19, 2010 in this file photo.

Japan fund managers dump stocks

TOKYO Japanese fund managers lifted their bond allocation to a record high while cutting that on stocks to a 14-year low in August, as they fret over the slowdown in the global economy on top of concerns about Europe, a Reuters poll showed. The poll of 10 Japan-based fund managers, taken between Aug. 15 and Aug. 22, showed bonds made up an average of 51.6% of asset portfolios in August, the highest proportion since the survey began in 1995 and up from 51.1% in July. Equities slipped to just 41.2%, the lowest since late 1998, when Japan was mired in a domestic banking crisis, compared to 42.1% in July. There is likely to be confusion again when Europeans will discuss their safety net. The rebound in Spanish bond prices since late July has created comfort in financial markets, but there is a risk that market sentiment has become too optimistic, said Akio Yoshino, chief economist at Amundi Japan. The US S&P 500 Index hit a four-year high on Aug. 17, supported by hopes the European Central Bank (ECB) will start buying Spanish bonds next month to bring down Madrids borrowing costs. Japans Nikkei average also hit a 3 -month high in midAugust before giving up some of the gains. Share prices have risen in many countries but this is largely helped by thin trade during the summer holiday. Its questionable whether policy makers can come up with measures that will go beyond market expectations, said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance. In addition to persisting worries about the debt crisis in Europe, fund managers also cited growing concerns about signs of slowdown around the world. Although US economic data has been fairly upbeat in the past few weeks, recent data suggests Chinese manufacturing sector is facing a more severe slowdown than in the aftermath of the 2008 global financial crisis. Europe is in recession. China is slowing sharply. India is hit by abnormal weather. Brazil is growing just over two percent. Japans outlook is dimming... In this environment it is difficult for the US alone to maintain strength, said Amundis Mr. Yoshino. In equity portfolios, fund managers cut the weighting on US and Canadian shares to a record low 30.4% from 32.2% in July. Their appetite for domestic stocks also ebbed further from a Japan, S3/ 6

*Computation for UITF YOY Converted from CTF to UITF; Assets under CTF were already at mark to market. NOTICE: BSP Circular 593 requires that prior to investing in UITFs, a client should undergo a Client Suitability Assessment (CSA) to determine what UITF is best suited to his/her investment objectives, risk tolerance, preferences and experience. The CSA should be updated whenever the characteristics, preferences or circumstances of the client change or at least once every three years, provided that if the client does not notify the trust institution of such change, he/she is deemed to have waived his/her right for a new CSA for the prescribed period.

PHILIPPINE DEALING & EXCHANGE CORP. CORPORATE BOND BOARD SUMMARY

Inst Name Coupon Years-to- Maturity Volume onLast Last Traded Weighted Ave. Last Price Maturity Traded Date Date/Time Yield on Last (in M pesos) Traded Date MBT 17 R12 7.0000 0.13 10/19/2012 1.000000 8/10/2012 99.99409 99.99409 MBT 17 R12-NWT 7.0000 0.13 10/19/2012 5.000000 5/9/2012 100.21345 100.21345 FLI 11-12 7.5269 0.21 11/19/2012 0.200000 8/30/2012 100.31684 100.31684 RCB 18 R13 7.0000 0.47 2/22/2013 2.600000 7/20/2012 99.99668 99.99652 RCB 18 R13-NWT 7.0000 0.47 2/22/2013 3.500000 7/2/2012 101.79368 101.80143 ALI 08-13 8.7500 0.95 8/14/2013 0.600000 8/17/2012 104.33559 104.33559 ALI 08-13-NWT 8.7500 0.95 8/14/2013 1.000000 2/21/2012 105.01715 105.01715 MBT 18 R13 7.7500 1.08 10/3/2013 15.000000 12/8/2010 101.26015 101.26118 MBT 18 R13-NWT 7.7500 1.08 10/3/2013 0.600000 6/7/2012 101.09142 101.09142 SMB 04 APR 14 8.8750 1.58 4/3/2014 2.000000 8/16/2012 105.33504 105.34361 SMB 04 APR 14-NWT 8.8750 1.58 4/3/2014 5.000000 7/24/2012 105.35893 105.35893 MBT 19 R14 7.5000 1.67 5/6/2014 10.000000 2/6/2012 103.13142 103.13519 MBT 19 R14-NWT 7.5000 1.67 5/6/2014 0.500000 8/14/2012 100.80439 100.80439 RCB 19 R14 7.7500 1.70 5/15/2014 10.000000 2/7/2012 103.95603 104.23056 RCB 19 R14-NWT 7.7500 1.70 5/15/2014 1.000000 8/2/2012 99.58610 99.58535 SM 6-14 8.2500 1.81 6/26/2014 2.100000 8/23/2012 104.65175 104.73567 RLC 07-14 8.5000 1.86 7/14/2014 1.000000 8/28/2012 102.57985 102.58365 RLC 07-14-NWT 8.5000 1.86 7/14/2014 1.000000 4/2/2012 99.97824 99.97830 RLC 08-14 8.2500 1.98 8/27/2014 1.000000 8/15/2012 105.21280 105.21280 RLC 08-14-NWT 8.2500 1.98 8/27/2014 2.000000 8/28/2012 104.78158 104.78819 FLI 11-14 8.4615 2.21 11/20/2014 0.067000 7/11/2012 106.49770 106.49770 FLI 11-14-NWT 8.4615 2.21 11/20/2014 4.800000 7/13/2011 105.08905 105.08905 JGS 11-14 8.2500 2.21 11/20/2014 20.000000 8/29/2012 106.63493 106.63493 JGS 11-14-NWT 8.2500 2.21 11/20/2014 9.000000 8/10/2012 103.23918 103.23918 TDI 02-15 8.0550 2.45 2/13/2015 0.100000 8/30/2012 104.07284 104.07284 TDI 02-15-NWT 8.0550 2.45 2/13/2015 2.000000 3/12/2012 103.82804 103.82804 PSALM 05-01 6.8750 2.63 4/22/2015 2.978000 3:46:45 PM 103.88586 103.88586 MEG 05-15 8.4600 2.70 5/18/2015 5.000000 8/30/2012 109.33980 109.33980 MEG 05-15-NWT 8.4600 2.70 5/18/2015 2.000000 8/8/2012 104.11697 104.11697 EDC 06-15 8.6418 2.75 6/4/2015 1.230000 8/23/2012 107.48566 107.97754 EDC 06-15-NWT 8.6418 2.75 6/4/2015 1.000000 8/15/2012 108.03715 108.03715 RCB 11-15 6.5000 3.18 11/6/2015 0.450000 8/22/2011 96.42129 96.42129 RCB 11-15-NWT 6.5000 3.18 11/6/2015 2.000000 8/23/2012 107.08431 107.09012 RCB Z11-15 0.0000 3.18 11/6/2015 1.900000 12/21/2011 79.40506 79.40506 RCB Z11-15-NWT 0.0000 3.18 11/6/2015 2.000000 6/21/2012 85.63548 85.63548 UCPB 02-16-NWT 6.2500 3.48 2/25/2016 5.000000 8/28/2012 102.04659 102.04659 SM 6-16 9.1000 3.81 6/25/2016 FLI 10-16 6.1962 4.10 10/7/2016 5.000000 2/22/2012 104.90706 104.90706 UCPB 11-16 6.0000 4.21 11/19/2016 6/4/2012 UCPB 11-16-NWT 6.0000 4.21 11/19/2016 2.000000 8/22/2012 100.93409 100.93409 EDC 12-16 9.3327 4.25 12/4/2016 0.300000 8/17/2012 117.56029 117.61196 EDC 12-16-NWT 9.3327 4.25 12/4/2016 1.000000 5/21/2012 114.11631 114.11631 FMIC 2-17 5.6750 4.48 2/25/2017 13.600000 8/16/2012 99.99919 99.99919 PSALM 07-01 7.7500 4.64 4/22/2017 2.060000 3:39:03 PM 105.19377 105.16978 AC 17 P15 7.2000 4.66 4/30/2017 100.000000 8/15/2012 105.04569 104.36401 AC 17 P15-NWT 7.2000 4.66 4/30/2017 1.600000 5/8/2012 99.99856 99.99870 RCB 06-17 5.2500 4.82 6/29/2017 100.000000 6/29/2012 99.99972 100.00000 RCB 06-17-NWT 5.2500 4.82 6/29/2017 1.000000 8/30/2012 101.49564 101.49564 RCB Z06-17-NWT 0.0000 4.82 6/29/2017 0.500000 5/18/2012 76.62109 76.58779 BBSPT 8-17 4.8000 4.96 8/17/2017 UCPB 08-17 5.8750 4.97 8/21/2017 UCPB 08-17-NWT 5.8750 4.97 8/21/2017 2.000000 8/6/2012 99.99859 99.99859 GLO 17 R15 5.7500 5.00 9/1/2017 3.080000 7/10/2012 99.99747 99.99748 GLO 17 R15-NWT 5.7500 5.00 9/1/2017 20.500000 6/13/2012 100.56023 100.56023 RCB 11-17-NWT 5.2500 5.18 11/7/2017 1.000000 8/22/2012 102.01905 102.01905 FMIC 17 R16 5.5000 5.19 11/10/2017 2.000000 8/24/2012 99.99850 99.99844 SMB 19 R17 5.9300 6.58 4/2/2019 7.720000 8/13/2012 100.69915 100.69915 SMB 19 R17-NWT 5.9300 6.58 4/2/2019 2.000000 8/22/2012 99.99263 99.99249 SMB 04-19 10.5000 6.58 4/3/2019 2.250000 6/18/2012 118.63696 118.62483 SMB 04-19-NWT 10.5000 6.58 4/3/2019 12.550000 5/31/2012 128.16605 128.16605 ALI 19 R17 5.6250 6.65 4/27/2019 1.500000 8/29/2012 99.99155 99.99155 ALI 19 R17-NWT 5.6250 6.65 4/27/2019 2.000000 8/28/2012 102.81344 102.81344 GLO 19 R17 6.0000 6.75 6/1/2019 39.000000 7/10/2012 101.69671 101.69671 GLO 19 R17-NWT 6.0000 6.75 6/1/2019 120.000000 6/21/2012 100.46965 100.42254 FLI 19 R17 6.2731 6.76 6/8/2019 1.000000 8/14/2012 100.50006 100.50006 FLI 19 R17-NWT 6.2731 6.76 6/8/2019 30.000000 6/19/2012 100.40961 100.40961 SM 19 R17 6.0000 6.87 7/16/2019 3.400000 8/29/2012 100.83147 100.83147 SM 19 R17-NWT 6.0000 6.87 7/16/2019 5.000000 8/14/2012 101.26283 101.26341 FMIC 19 R17 5.7500 6.94 8/10/2019 AC 05-21 6.8000 8.69 5/12/2021 40.000000 8/29/2012 105.38948 105.38948 AC 05-21-NWT 6.8000 8.69 5/12/2021 2.000000 11:17:51 AM 105.38530 105.38530 SMB 22 R19 6.6000 9.58 4/2/2022 2.000000 8/29/2012 100.69760 100.69760 SMB 22 R19-NWT 6.6000 9.58 4/2/2022 24.000000 8/28/2012 101.40943 101.40955 ALI 22 R19 6.0000 9.65 4/27/2022 1.690000 3:05:28 PM 100.71867 100.71867 ALI 22 R19-NWT 6.0000 9.65 4/27/2022 5.000000 7/24/2012 99.98892 99.98892 SM 22 R19 6.9442 9.87 7/16/2022 12.460000 3:58:04 PM 103.55650 103.55650 SM 22 R19-NWT 6.9442 9.87 7/16/2022 2.140000 8/3/2012 100.66559 100.66676 AC 27 R22 6.8750 14.69 5/11/2027 3.940000 8/30/2012 102.33459 102.33459 AC 27 R22-NWT 6.8750 14.69 5/11/2027 1.000000 8/13/2012 99.99953 99.99968 Bid Yield Bid Price Offer Yield Offer Price Open Price High Price

AS OF AUGUST 31, 2012

Low Price Close Price

9.0000 0.0000 6.0000 7.0000 0.0000 6.0000 0.0000 9.0000 0.0000 6.5000 0.0000 9.0000 0.0000 9.0000 0.0000 5.8000 8.0000 0.0000 7.1000 0.0000 7.1000 0.0000 8.2500 0.0000 7.8000 0.0000 5.5000 8.0000 0.0000 6.8000 0.0000 7.5000 0.0000 7.5000 0.0000 0.0000 6.0500 6.1875 6.7500 0.0000 7.8000 0.0000 6.3000 6.4500 9.0000 0.0000 0.0000 0.0000 0.0000 4.8000 6.7500 0.0000 5.9500 0.0000 0.0000 5.6250 6.0500 0.0000 7.5000 0.0000 6.2500 0.0000 6.2500 0.0000 6.3750 0.0000 6.0500 0.0000 5.8000 7.5000 0.0000 6.7500 0.0000 6.5500 0.0000 6.9250 0.0000 6.9250 0.0000

99.73762 0.00000 100.31465 99.99837 0.00000 102.51124 0.00000 98.71858 0.00000 103.50948 0.00000 97.68731 0.00000 98.04637 0.00000 104.14754 100.83367 0.00000 102.09082 0.00000 102.76435 0.00000 99.97957 0.00000 100.55919 0.00000 103.34986 101.08034 0.00000 104.53575 0.00000 97.19475 0.00000 78.98438 0.00000 0.00000 110.22813 100.02846 97.26908 0.00000 105.43587 0.00000 97.57706 105.16978 93.20740 0.00000 0.00000 0.00000 0.00000 99.99896 96.33217 0.00000 99.14110 0.00000 0.00000 99.43928 99.35048 0.00000 115.35167 0.00000 96.63229 0.00000 98.63249 0.00000 99.44300 0.00000 99.71373 0.00000 99.71417 95.55659 0.00000 98.94679 0.00000 96.10119 0.00000 100.12428 0.00000 99.53863 0.00000

0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 3.80000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 5.50000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 6.40000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

0.00000 99.99409 99.99409 99.99409 0.00000 100.21345 100.21345 100.21345 0.00000 100.31684 100.31684 100.31684 0.00000 99.99652 99.99652 99.99652 0.00000 101.80143 101.80143 101.80143 0.00000 104.33559 104.33559 104.33559 0.00000 105.01715 105.01715 105.01715 0.00000 101.26118 101.26118 101.26118 0.00000 101.09142 101.09142 101.09142 0.00000 105.34361 105.34361 105.34361 0.00000 105.35893 105.35893 105.35893 0.00000 103.13519 103.13519 103.13519 0.00000 100.80439 100.80439 100.80439 0.00000 103.69029 104.23056 103.69029 0.00000 99.58535 99.58535 99.58535 0.00000 102.97771 104.73567 102.97771 0.00000 102.58365 102.58365 102.58365 0.00000 99.97830 99.97830 99.97830 0.00000 105.21280 105.21280 105.21280 0.00000 104.78819 104.78819 104.78819 0.00000 106.49770 106.49770 106.49770 0.00000 105.08905 105.08905 105.08905 0.00000 106.63493 106.63493 106.63493 0.00000 103.23918 103.23918 103.23918 0.00000 104.07284 104.07284 104.07284 0.00000 103.82804 103.82804 103.82804 0.00000 103.88586 103.88586 103.88586 0.00000 109.33980 109.33980 109.33980 0.00000 104.11697 104.11697 104.11697 0.00000 105.35204 107.97754 105.35204 0.00000 108.03715 108.03715 108.03715 0.00000 96.42129 96.42129 96.42129 0.00000 107.09012 107.09012 107.09012 0.00000 79.40506 79.40506 79.40506 0.00000 85.63548 85.63548 85.63548 0.00000 102.04659 102.04659 102.04659 0.00000 0.00000 104.90706 104.90706 104.90706 0.00000 0.00000 100.93409 100.93409 100.93409 0.00000 117.61196 117.61196 117.61196 0.00000 114.11631 114.11631 114.11631 0.00000 99.99919 99.99919 99.99919 0.00000 106.00266 106.00266 105.16978 0.00000 105.72736 105.72736 104.36401 0.00000 99.99870 99.99870 99.99870 0.00000 100.00000 100.00000 100.00000 0.00000 101.49564 101.49564 101.49564 0.00000 76.58779 76.58779 76.58779 104.49671 0.00000 0.00000 99.99859 99.99859 99.99859 0.00000 99.99748 99.99748 99.99748 0.00000 100.56023 100.56023 100.56023 0.00000 102.01905 102.01905 102.01905 0.00000 99.99844 99.99844 99.99844 102.34202 100.69915 100.69915 100.69915 0.00000 99.99249 99.99249 99.99249 0.00000 118.62483 118.62483 118.62483 0.00000 128.16605 128.16605 128.16605 0.00000 99.99155 99.99155 99.99155 0.00000 102.81344 102.81344 102.81344 0.00000 101.69671 101.69671 101.69671 0.00000 100.56450 100.56450 100.42254 0.00000 100.50006 100.50006 100.50006 0.00000 100.40961 100.40961 100.40961 0.00000 100.83187 100.83187 100.83147 0.00000 101.26341 101.26341 101.26341 0.00000 0.00000 105.38948 105.38948 105.38948 0.00000 105.38530 105.38530 105.38530 101.40899 100.69760 100.69760 100.69760 0.00000 101.40955 101.40955 101.40955 0.00000 100.71867 100.71867 100.71867 0.00000 99.98892 99.98892 99.98892 0.00000 103.55650 103.55650 103.55650 0.00000 100.66676 100.66676 100.66676 0.00000 102.33459 102.33459 102.33459 0.00000 99.99968 99.99968 99.99968

99.99409 100.21345 100.31684 99.99652 101.80143 104.33559 105.01715 101.26118 101.09142 105.34361 105.35893 103.13519 100.80439 104.23056 99.58535 104.73567 102.58365 99.97830 105.21280 104.78819 106.49770 105.08905 106.63493 103.23918 104.07284 103.82804 103.88586 109.33980 104.11697 107.97754 108.03715 96.42129 107.09012 79.40506 85.63548 102.04659 104.90706 100.93409 117.61196 114.11631 99.99919 105.16978 104.36401 99.99870 100.00000 101.49564 76.58779 99.99859 99.99748 100.56023 102.01905 99.99844 100.69915 99.99249 118.62483 128.16605 99.99155 102.81344 101.69671 100.42254 100.50006 100.40961 100.83147 101.26341 105.38948 105.38530 100.69760 101.40955 100.71867 99.98892 103.55650 100.66676 102.33459 99.99968

TREASURY BILLS <1M TBILL 09.05.12 0 0.01 9/5/2012 0.500000 8/8/2012 1.7000 1.7000 1.7000 1.7000 1.7000 <1M TBILL 09.19.12 0 0.04 9/19/2012 0.600000 3/21/2012 2.2500 2.2500 2.2500 2.2500 2.2500 1M TBILL 10.10.12* 0 0.10 10/10/2012 0.010000 10:44:21 AM 1.1000 1.1000 1.1000 1.1000 1M TBILL 10.17.12 0 0.12 10/17/2012 0.501187 8/2/2012 1.7500 1.7500 1.7500 1.7500 1.7500 2M TBILL 10.24.12 0 0.14 10/24/2012 0.551000 8/2/2012 1.7500 1.7500 1.7500 1.7500 1.7500 2M TBILL 10.31.12 0 0.16 10/31/2012 103.000000 8/30/2012 1.3750 1.3750 1.3750 1.3750 1.3750 2M TBILL 11.07.12 0 0.18 11/7/2012 1.394300 8/28/2012 1.3750 1.3750 1.3750 1.3750 1.3750 2M TBILL 11.21.12 0 0.22 11/21/2012 4.490000 8/28/2012 1.3750 1.3750 1.3750 1.3750 1.3750 3M TBILL 11.28.12* 0 0.24 11/28/2012 235.000000 7/30/2012 2.0000 2.0000 2.0000 2.0000 2.0000 4M TBILL 12.26.12 0 0.31 12/26/2012 0.100430 8/29/2012 1.6250 1.6250 1.6250 1.6250 1.6250 4M TBILL 01.09.13 0 0.35 1/9/2013 0.392725 8/9/2012 1.8150 1.8150 1.8150 1.8150 1.8150 5M TBILL 01.23.13 0 0.39 1/23/2013 0.402200 8/16/2012 2.0000 2.0000 2.0000 2.0000 2.0000 5M TBILL 02.06.13 0 0.43 2/6/2013 250.000000 8/15/2012 1.7000 1.7000 1.7000 1.7000 1.7000 5M TBILL 02.20.13 0 0.47 2/20/2013 1.608000 3:23:25 PM 1.6350 1.6350 1.6350 1.6350 6M TBILL 03.06.13* 0 0.50 3/6/2013 1.629642 4/10/2012 2.2500 2.2500 2.2500 2.2500 2.2500 7M TBILL 03.20.13 0 0.54 3/20/2013 0.235000 8/22/2012 1.7500 1.7500 1.7500 1.7500 1.7500 8M TBILL 04.17.13 0 0.62 4/17/2013 46.000000 7/18/2012 2.2000 2.2000 2.2000 2.2000 2.2000 8M TBILL 05.02.13 0 0.66 5/2/2013 24.475000 8/29/2012 2.4000 2.4000 2.4000 2.4000 2.4000 9M TBILL 05.15.13 0 0.70 5/15/2013 0.497000 3:35:16 PM 2.0001 2.0001 2.0001 2.0001 9M TBILL 05.29.13 0 0.73 5/29/2013 10M TBILL 06.26.13 0 0.81 6/26/2013 763.000000 8/10/2012 2.2000 2.2000 2.2000 2.2000 2.2000 10M TBILL 07.10.13 0 0.85 7/10/2013 500.000000 8/28/2012 2.1000 2.1000 2.1000 2.1000 2.1000 11M TBILL 07.24.13 0 0.89 7/24/2013 29.406800 10:47:20 AM 2.0348 2.0251 2.0350 2.0251 11M TBILL 08.07.13 0 0.93 8/7/2013 0.102000 8/30/2012 2.0800 2.0800 2.0800 2.0800 2.0800 1Y TBILL 08.22.13* 0 0.97 8/22/2013 73.000000 3:58:04 PM 2.1000 2.1000 2.1000 2.1000 FIXED INCOME TREASURY NOTES 1M FXTN 10-30 12.1250 0.12 10/17/2012 11.150000 7/27/2012 1.8000 1.8000 1.8000 1.8000 1.8000 2M FXTN 07-41 10.5000 0.21 11/17/2012 5.000000 6/22/2012 2.9500 2.9500 2.9500 2.9500 2.9500 4M FXTN 07-42 9.0000 0.34 1/5/2013 0.100000 8/24/2012 1.5500 1.5500 1.5500 1.5500 1.5500 4M FXTN 03-19 5.2500 0.35 1/7/2013 5.000000 8/30/2012 2.5000 2.5000 2.5000 2.5000 2.5000 6M FXTN 07-43 8.7500 0.50 3/3/2013 22.000000 8/14/2012 2.0052 2.1500 2.1500 1.9875 1.9875 6M FXTN 05-66 6.6250 0.52 3/13/2013 300.000000 8/13/2012 1.8975 1.9000 1.9000 1.8925 1.8925 7M FXTN 10-31 12.7500 0.56 3/27/2013 5.000000 3/28/2012 3.6000 3.6000 3.6000 3.6000 3.6000 9M FXTN 10-32 11.7500 0.70 5/15/2013 3.200000 8/3/2012 2.7500 2.7500 2.7500 2.7500 2.7500 10M FXTN 07-44 9.6250 0.82 6/29/2013 100.000000 7/17/2012 2.3500 2.3500 2.3500 2.3500 2.3500 1.5Y FXTN 10-33 11.0000 1.10 10/9/2013 0.100000 4/25/2012 2.6000 2.6000 2.6000 2.6000 2.6000 1.5Y FXTN 07-45 7.1250 1.16 11/2/2013 1.000000 11:09:15 AM 3.0000 3.0000 3.0000 3.0000 1.5Y FXTN 05-67 6.2500 1.40 1/27/2014 192.783977 8/30/2012 2.3750 2.3750 2.3750 2.3750 2.3750 2Y FXTN 10-34 12.3750 1.56 3/25/2014 3.420000 6/4/2012 4.3750 4.3750 4.3750 4.3750 4.3750 2Y FXTN 10-35 * 12.7500 1.86 7/15/2014 6.300000 7/13/2012 3.9500 3.9500 3.9500 3.9500 3.9500 2.5Y FXTN 07-46 6.5000 2.08 10/4/2014 3.000000 8/1/2012 3.5000 3.5000 3.5000 3.5000 3.5000 2.5Y FXTN 10-36 12.3750 2.48 2/24/2015 1.500000 8/24/2012 3.3750 3.3750 3.3750 3.3750 3.3750 3Y FXTN 05-68 6.3750 2.69 5/13/2015 50.000000 8/17/2012 3.7500 3.7500 3.7500 3.7500 3.7500 3Y FXTN 07-47 8.3750 2.72 5/22/2015 120.000000 8/24/2012 3.8525 3.8550 3.8550 3.8500 3.8500 3Y FXTN 04-20 4.8750 2.88 7/21/2015 5.000000 8/14/2012 3.6000 3.6000 3.6000 3.6000 3.6000 3Y FXTN 10-37 * 11.8750 2.98 8/25/2015 100.000000 8/29/2012 3.8525 3.8550 3.8550 3.8500 3.8500 3.5Y FXTN 05-69 4.6250 3.23 11/25/2015 50.000000 7/27/2012 3.9000 3.9000 3.9000 3.9000 3.9000 3.5Y FXTN 10-38 10.1250 3.28 12/15/2015 3.000000 6/28/2012 3.8750 3.8750 3.8750 3.8750 3.8750 3.5Y FXTN 10-39 9.2500 3.36 1/12/2016 8.000000 7/31/2012 3.9500 3.9500 3.9500 3.9500 3.9500 3.5Y FXTN 07-48 7.0000 3.40 1/27/2016 27.200000 3:38:12 PM 4.1009 4.0000 4.2000 4.0000 4Y FXTN 10-40 7.5000 3.57 3/30/2016 0.400000 1/16/2012 4.7500 4.7500 4.7500 4.7500 4.7500 4Y FXTN 10-41 * 7.0000 3.65 4/27/2016 75.000000 3/16/2012 4.2000 4.2000 4.2000 4.2000 4.2000 4.5Y FXTN 10-42 9.1250 4.01 9/4/2016 32.000000 4:07:26 PM 4.2600 4.2613 4.2613 4.2588 4.5Y FXTN 10-43 6.2500 4.21 11/16/2016 1.100000 8/14/2012 4.0500 4.0500 4.0500 4.0500 4.0500 5Y FXTN 07-49 7.0000 4.58 3/31/2017 36.000000 11:49:07 AM 4.3839 4.3982 4.3982 4.3697 5Y FXTN 20-01 14.3750 4.64 4/24/2017 3.000000 8/1/2012 4.6750 4.6750 4.6750 4.6750 4.6750 5Y FXTN 05-70 4.6250 4.84 7/5/2017 40.000000 10:16:37 AM 4.4500 4.4500 4.4500 4.4500 5Y FXTN 10-44 * 7.7500 4.97 8/23/2017 80.000000 8/29/2012 4.5500 4.5500 4.5500 4.5500 4.5500 5.5Y FXTN 07-50 5.3750 5.15 10/28/2017 5.000000 3:26:55 PM 4.4900 4.4750 4.5500 4.4750 5.5Y FXTN 10-45 5.8750 5.41 1/31/2018 50.000000 8/29/2012 4.5750 4.5750 4.5750 4.5750 4.5750 6Y FXTN 07-51 5.0000 5.96 8/18/2018 132.000000 3:49:40 PM 4.6250 4.6250 4.6250 4.6250 6.5Y FXTN 10-47 8.8750 6.22 11/20/2018 35.000000 8/17/2012 4.7250 4.7250 4.7250 4.7250 4.7250 6.5Y FXTN 10-48 7.8750 6.47 2/19/2019 316.145000 8/30/2012 4.6851 4.6850 4.8000 4.6850 4.8000 7Y FXTN 07-53 5.0000 6.65 4/26/2019 5.000000 8/24/2012 4.6100 4.6100 4.6100 4.6100 4.6100 7Y FXTN 07-54 4.7500 6.88 7/19/2019 139.000000 3:37:45 PM 4.6814 4.6850 4.6850 4.6750 7Y FXTN 07-55 * 4.7500 6.99 8/30/2019 230.000000 3:23:55 PM 4.6763 4.6950 4.6950 4.6500 7.5Y FXTN 10-50 7.7500 7.46 2/18/2020 9.030000 8/29/2012 4.9500 4.9500 4.9500 4.9500 4.9500 8.5Y FXTN 10-51 6.1250 8.04 9/16/2020 10.000000 8/24/2012 4.9000 4.9000 4.9000 4.9000 4.9000 8.5Y FXTN 10-52 5.8750 8.29 12/16/2020 10.995087 8/30/2012 4.7180 4.8000 4.8000 4.6500 4.6500 9Y FXTN 10-53 6.5000 8.65 4/28/2021 170.000000 3:58:17 PM 4.8300 4.8300 4.8300 4.8300 9.5Y FXTN 10-55 5.7500 9.23 11/24/2021 100.000000 11:06:41 AM 4.8500 4.8500 4.8500 4.8500 9.5Y FXTN 10-54 6.3750 9.38 1/19/2022 1,029.000000 3:44:15 PM 4.8329 4.8600 4.8600 4.8300 10Y FXTN 20-02 15.0000 9.53 3/14/2022 2.000000 6/28/2012 5.3267 5.3267 5.3267 5.3267 5.3267 10Y FXTN 10-56 * 4.8750 9.92 8/2/2022 10.000000 8/30/2012 4.7500 4.7500 4.7500 4.7500 4.7500 10.5Y FXTN 20-03 12.7500 10.13 10/17/2022 - 8/12/2005 0.0000 0.0000 0.0000 0.0000 0.0000 10.5Y FXTN 20-04 13.0000 10.47 2/20/2023 10.000000 8/8/2012 4.8575 4.8600 4.8600 4.8550 4.8550 11Y FXTN 20-05 11.8750 10.74 5/29/2023 0.285000 11:04:06 AM 5.1750 5.1750 5.1750 5.1750 12Y FXTN 20-06 11.3750 11.14 10/23/2023 58.000000 8/19/2011 6.3000 6.3000 6.3000 6.3000 6.3000 12Y FXTN 20-07 12.3750 11.76 6/3/2024 3.000000 6/28/2012 5.4698 5.4698 5.4698 5.4698 5.4698 FXTN 20-08 12.8750 11.93 8/5/2024 10.600000 8/8/2012 4.9775 4.9800 4.9800 4.9750 4.9750 12Y 13Y FXTN 20-09 13.7500 12.20 11/11/2024 300.600000 9/6/2011 6.5000 6.5000 6.5000 6.5000 6.5000 13Y FXTN 20-10 12.1250 12.62 4/14/2025 50.000000 12/21/2011 5.7500 5.7500 5.7500 5.7500 5.7500 14Y FXTN 20-11 12.1250 13.14 10/20/2025 40.000000 8/8/2012 5.0775 5.0800 5.0800 5.0750 5.0750 14Y FXTN 25-01 18.2500 13.25 11/29/2025 36.500000 9/26/2011 6.4000 6.4000 6.4000 6.4000 6.4000 FXTN 20-12 10.2500 13.39 1/19/2026 20.000000 8/15/2012 5.3250 5.3250 5.3250 5.3250 5.3250 14Y 15Y FXTN 20-13 8.0000 14.27 12/7/2026 40.000000 8/3/2012 5.1975 5.2000 5.2000 5.1950 5.1950 16Y FXTN 20-14 8.6250 15.02 9/6/2027 50.000000 6/1/2012 5.8075 5.8100 5.8100 5.8050 5.8050 17Y FXTN 20-15 9.5000 16.26 12/4/2028 60.000000 6/4/2012 5.8675 5.8700 5.8700 5.8650 5.8650 18Y FXTN 20-16 8.7500 17.74 5/27/2030 0.400000 2:41:45 PM 5.6500 5.6500 5.6500 5.6500 18Y FXTN 25-02 12.5000 17.91 7/28/2030 0.900000 5/23/2011 7.8000 7.8000 7.8000 7.8000 7.8000 19Y FXTN 25-03 11.2500 18.41 1/26/2031 2.000000 8/8/2012 5.5075 5.5100 5.5100 5.5050 5.5050 19Y FXTN 20-17 8.0000 18.88 7/19/2031 10,723.145549 4:11:50 PM 5.6418 5.6500 5.6500 5.4000 19Y FXTN 25-04 9.3750 19.10 10/5/2031 40.000000 6/1/2012 6.0175 6.0200 6.0200 6.0150 6.0150 19Y FXTN 20-18 5.8750 19.43 2/2/2032 14.500000 3:03:32 PM 5.7427 5.6500 5.8000 5.6500 25Y FXTN 25-05 8.5000 20.25 11/29/2032 9.982000 8/15/2012 5.7250 5.7250 5.7250 5.7250 5.7250 25Y FXTN 25-06 9.2500 22.19 11/5/2034 30.000000 8/30/2012 6.0500 6.0500 6.0500 6.0500 6.0500 25Y FXTN 25-07 8.0000 23.09 9/30/2035 25.000000 8/29/2012 5.9250 5.9250 5.9250 5.9250 5.9250 25Y FXTN 25-08 8.1250 23.30 12/16/2035 259.000000 12:03:39 PM 5.7116 5.7000 5.7200 5.6950 25Y FXTN 25-09 7.6250 24.09 9/29/2036 34.000000 8/30/2012 5.7246 5.7600 5.7600 5.7000 5.7000 FXTN 25-10 * 5.7500 24.97 8/16/2037 190.345000 3:49:36 PM 5.6817 5.7100 5.7200 5.4500 25Y RETAIL TREASURY BONDS <1M RTB 03-07 5.2500 0.06 9/24/2012 0.100000 8/30/2012 3.0000 3.0000 3.0000 3.0000 3.0000 RTB 05-07 9.0000 0.91 7/31/2013 6.500000 3:16:10 PM 2.2748 2.2250 2.8750 2.2250 11M 2.5Y RTB 05-08 6.2500 2.06 9/24/2014 51.000000 3:45:05 PM 2.9534 2.9475 3.2500 2.9475 3Y RTB 05-09 5.8750 2.96 8/19/2015 1.000000 11:24:49 AM 4.2500 4.2500 4.2500 4.2500 3.5Y RTB 05-10 6.0000 3.50 3/3/2016 4.781000 3:51:28 PM 4.0500 4.0500 4.0500 4.0500 4.5Y RTB 07-01 7.0000 4.06 9/24/2016 18.221000 10:22:50 AM 4.1250 4.1250 4.1250 4.1250 5Y RTB 07-02 6.6250 4.96 8/19/2017 2.000000 3:22:26 PM 4.4750 4.4750 4.4750 4.4750 8Y RTB 10-01 7.2500 7.96 8/19/2020 1.200000 2:40:43 PM 4.9417 4.9000 4.9500 4.9000 8.5Y RTB 10-02 7.3750 8.50 3/3/2021 1,500.000000 3:53:39 PM 4.8317 4.8350 4.8350 4.8300 9.5Y RTB 10-03 5.7500 9.13 10/20/2021 300.100000 3:16:52 PM 4.8500 4.8500 4.9500 4.8500 15Y RTB 15-01 6.2500 14.14 10/20/2026 236.010000 3:44:05 PM 5.2903 5.2850 5.4500 5.2850 15Y RTB 15-02 5.3750 14.50 3/1/2027 275.570000 3:54:24 PM 5.2806 5.2500 5.2850 5.2500 20Y RTB 20-01 * 5.8750 19.50 3/1/2032 302.643000 3:59:52 PM 5.6744 5.6650 5.7500 5.5500 SPECIAL PURPOSE TREASURY BONDS 2.5Y SPTB 10-03 12.2500 2.11 10/14/2014 450.000000 1/6/2012 3.3970 3.2500 3.5000 3.1750 3.5000 ZERO COUPON TREASURY BONDS <1M ZCB 07-03 0 0.01 9/8/2012
FOOTNOTE: (1) ISINs with asterisks are the specific securities for which designated market-makers are to post yields and prices. (2) Empty rows mean that the ISIN has not yet been traded in PDEx. (3) The date under the column Traded Time indicates the day the ISIN was last traded. (4) The time under the column Traded Time indicates the time the ISIN was traded during the latest trading day.

record high hit two months ago. The weighting fell to 36.7% from 38.1% in July and the record 41.4% in June. Growing concerns on the global economy also meant that European shares looked less bad than before in relative terms. As hopes of policy steps to bring down Spains borrowing costs underpinned European shares, with German and French shares outperforming US and Japan in July, fund managers lifted their euro zone share weightings slightly to 10.5% from 10.1%, though the level is still depressed level in historical terms. Japanese fund managers also pushed up the euro zone weighting in their bond portfolio as well, to 17.4% from 16.5% in July and a record low 15.9% in June. That is still well below the 2011

average of 22% but some fund managers said they warmed up on the euro zone after ECB President Mario Draghi unveiled some of the outline of his plan to save the euro. Mr. Draghi said the ECB would buy short-term government bonds if a government requests for help from the euro zones bailout funds. Asked if Mr. Draghis plan to intervene in the euro zone bond market changed their view on the euro zone crisis, three fund managers said it did while another three said no. The remaining four did not respond. The central bank is also considering setting yield band targets under the expected new bondbuying program, sources have told Reuters. The ECB is expected to unveil details of the program after its policy meeting on Sept. 6. Reuters

NEWS ONLINE
www.bworldonline.com

PDEX DAILY TRADE VOLUME

(in million pesos)
T-Bills FXTNs RTBs AC ALI FLI JGS MEG PSALM RLC SM SMB TDI RCBC UCPB TOTAL 27-Aug 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 28-Aug 509.71 1,059.99 5.30 2.00 0.00 20.05 0.00 1.46 3.00 4.89 24.00 0.00 0.00 5.00 29-Aug 1,294.17 1,242.81 90.00 11.50 0.00 20.00 5.00 26.79 0.00 3.40 2.00 0.00 0.00 0.00 30-Aug 240.17 3,535.08 3.94 0.00 0.20 0.00 5.00 0.00 0.00 1.99 0.00 0.10 1.00 0.00 31-Aug Average 104.52 13,128.88 2,699.03 2.00 1.69 0.00 0.00 0.00 5.04 0.00 12.46 0.00 0.00 0.00 0.00 15,953.61 537.14 13,980.77 2,134.23 25.31 5.06 0.20 20.03 5.00 11.10 3.00 5.69 13.00 0.10 1.00 5.00 16,716.60 Total for the Week 2,148.57 55,923.09 8,536.91 101.24 15.19 0.20 40.05 10.00 33.29 3.00 22.74 26.00 0.10 1.00 5.00 66,866.38

5,851.25 26,904.69 10,038.27

7,486.65 29,600.37 13,825.75

PDEX TRADE VOLUME TREND

(in million pesos)
T-Bills FXTNs RTBs AC ALI FLI FMIC JGS MEG PSALM SM SMB TDI RCBC TOTAL 31-Aug 104.52 13,128.88 2,699.03 2.00 1.69 0.00 0.00 0.00 0.00 5.04 12.46 0.00 0.00 0.00 15,953.61 Previous Day 240.17 10,038.27 3,535.08 3.94 0.00 0.20 0.00 0.00 5.00 0.00 1.99 0.00 0.10 1.00 13,825.75 Week Ago 1,998.25 9,909.83 1,496.57 0.00 3.00 0.00 2.00 20.00 0.00 1.96 55.00 0.00 0.00 0.00 13,486.61 Month Ago 3,558.29 13,924.76 1,597.23 0.00 44.96 0.00 0.00 0.00 0.00 25.37 2.00 0.00 0.00 0.00 19,152.61

PDEX PDST - F (Mart 1)

(as OF AUGUST 31, 2012)
+/- -0.0400 -0.0546 -0.0927 -0.0255 0.0335 -0.0135 -0.0089 0.0085 -0.0404 -0.0259 -0.0084 -0.0619 Week Ago 2.2342 1.5981 2.0154 2.4154 2.9538 3.8969 4.6192 4.8212 4.9296 5.0365 5.8876 5.9846 Tenor 1M 3M 6M 1Y 2Y 3Y 4Y 5Y 7Y 10Y 20Y 25Y Today 2.2023 1.5569 1.8881 2.2837 2.9750 4.0500 4.5769 4.8173 4.8896 5.0304 5.8279 5.9035 Previous Day 2.2423 1.6115 1.9808 2.3092 2.9415 4.0635 4.5858 4.8088 4.9300 5.0563 5.8363 5.9654 +/- -0.0319 -0.0412 -0.1273 -0.1317 0.0212 0.1531 -0.0423 -0.0039 -0.0400 -0.0061 -0.0597 -0.0811 Month Ago 2.3304 1.9919 2.2508 2.5369 2.9442 3.9385 4.6154 4.7500 4.8746 5.1192 5.7371 6.0038 +/-0.1281 -0.4350 -0.3627 -0.2532 0.0308 0.1115 -0.0385 0.0673 0.0150 -0.0888 0.0908 -0.1003

PDEX PDST - R1
(as OF AUGUST 31, 2012)
+/- 0.6500 -0.0750 -0.1000 -0.0400 -0.0250 -0.0500 0.0000 0.0187 -0.0300 -0.0075 -0.0228 -0.0147 Week Ago 2.0750 1.3780 1.8500 2.2500 2.5250 3.6350 4.2250 4.4585 4.7450 4.8750 5.7500 5.8000 Tenor 1M 3M 6M 1Y 2Y 3Y 4Y 5Y 7Y 10Y 20Y 25Y Today 2.0500 1.3750 1.7000 2.1000 2.5000 3.7750 4.2000 4.4875 4.6850 4.8600 5.6747 5.6993 Previous Day 1.4000 1.4500 1.8000 2.1400 2.5250 3.8250 4.2000 4.4688 4.7150 4.8675 5.6975 5.7140 +/- -0.0250 -0.0030 -0.1500 -0.1500 -0.0250 0.1400 -0.0250 0.0290 -0.0600 -0.0150 -0.0753 -0.1007 Month Ago 1.7000 1.8450 2.1000 2.3000 2.6250 3.5250 4.2350 4.4750 4.7350 4.9350 5.5507 5.7029 +/0.3500 -0.4700 -0.4000 -0.2000 -0.1250 0.2500 -0.0350 0.0125 -0.0500 -0.0750 0.1240 -0.0036

NOTE:

(1.) Empty rows mean that the ISIN has not yet been traded in PDEX.; (2.) The date under the column Traded Time indicates the day the ISIN was last traded.; (3. ) The time under the column Traded Time indicates the time the ISIN was traded during the latest trading day.

NOTE: PDEx Fixing Rates are the calculated average of the best 60% of firm BID rates posted by designated market-making banks for 12 tenors at 11:16 a.m. daily. PDEx Benchmarks are calculated from the weighted average yields of done transactions, or best firm bid rates as the case maybe for 12 tenors at 11:16 a.m. daily.