01:24.7
We begin with stocks.
01:29.3
Markets in Asia opening mixed after a tech-driven rally on Wall Street.
01:34.1
Let's take a look at the board.
01:35.1
Shares in Australia, even futures for Hong Kong pointing lower.
01:39.1
While Japan is seeing some modest gains, the Nikkei 225 up by about half of 1%.
01:45.0
The yen fairly steady after softening yesterday.
01:48.4
The currency had earlier slumped to its weakest against the dollar since 1990, prompting many to speculate.
01:54.7
We'll start to intervene.
01:57.1
Meanwhile, gold climbing to a fresh record after the latest U.S. inflation print, that is the producer price index, offered some calm to the markets.
02:05.3
Up ahead, we are waiting to get China's trade numbers.
02:09.9
Now, stateside, U.S. futures looking pretty good with the Dow leading gains up by a tenth of 1% for futures.
02:17.4
And the S&P and the Nasdaq also marginally higher when trading resumes tonight, Manila time.
02:23.1
Now, in commodities again.
02:24.7
Resuming gains ahead of a report from the International Energy Agency on the outlook as traders brace for a potential strike on Israel by Iran or its proxies.
02:33.9
The West Texas Intermediate climbing towards $86 a barrel after closing 1.4% lower the previous session, while Brent settled near $90.
02:43.3
Oil now on track for a weekly loss, but prices are still around 19% higher this year, in part due to OPEC plus supply cuts.
02:54.7
The world's largest tech companies drove a rebound on Wall Street Thursday, with traders now bracing for a daily reach of results from corporate America that could test or support this year's $4 trillion rally.
03:08.6
Earnings season kicks into full swing today with JPMorgan Chase, Wells Fargo, and Citigroup, Inc. reporting their numbers.
03:14.9
According to a Bloomberg data, 3.8% projected annual earnings growth per share for Q1 for S&P 500 members is being...
03:24.7
Also helping lift sentiment was an inflation report focused on producer prices, showing a rise, but one that trailed estimates and already showing some relief in key categories, rekindling hopes that inflation while ticking higher remains in a cooling trend.
03:40.7
Let's take a look at the board.
03:42.0
The S&P hovering near 5,200, while the Nasdaq is up by 1.7%.
03:49.0
That's as Alphabet got closer to the $2 trillion mark.
03:54.7
Amazon also hitting a record high, while Apple jumped on news that it plans to overhaul its Mac line.
04:24.7
What they are most about is what they see going forward.
04:27.6
I think we're going to have strong earnings from the quarter, maybe even upside surprises, but given the stickiness of inflation that we're seeing, we're really going to want to hear what these banks see in their business trends for the next quarter and the rest of the year.
04:46.2
The euro dropped after the UPN Central Bank signaled cooling inflation will soon allow it to cut rates.
04:54.7
Now, here's a look at the local corporate headlines we're watching this morning.
04:58.5
State Pension Fund Social Security System has chosen Metrobank to manage a 1.5 billion peso balanced fund by investing in various equities and fixed income assets.
05:10.2
Metrobank Trust's mandate actually started back in February and is slated to run for the next three years.
05:19.2
And Medalco Energy, or MSERV, has been tapped by Allied Care Experts, their ace group of hospitals.
05:24.7
For the installation of electrical facilities that are crucial to the day-to-day operations of two medical centers in the country,
05:32.6
MSERV turned over the load-side facilities that include two first private poles and six 250 KVA transformers for San Jose del Monte Muzon Medical Center in Bulacan and Ace Medical Center Saraya in Quezon.
05:47.7
Ace Group of Hospitals is a nationwide network of hospitals which currently has around 30 medical centers nationwide.
05:54.7
And we have this Justin Jerry, or Global Estate Resorts, Inc., a premier developer of integrated tourism and leisure townships owned by the Andrutan Group,
06:04.7
as actually reporting net income to parent company shareholders grew 3% to 1.8 billion pesos for 2023, as consolidated revenues grew by 14% to 8.3 billion pesos.
06:19.2
They're saying the exceptional growth was propelled by strong performance across its business segments,
06:24.4
including real estate, rental, and hotel operations.
06:28.9
Just a bit of a background and a breakdown, real estate sales actually grew 10%, hitting 6.5 billion pesos,
06:36.6
driven by improvements of real estate bookings from the company's projects in Bulacan New Coast, Southwood City, and Twin Lakes.
06:44.5
Reservation sales, meantime, hitting 19.2 billion pesos, marking its full recovery from 2019 and highlighting the sustained demand for its innovative,
06:54.4
innovative property offerings.
06:56.3
Hotel segment benefiting from resurgence in travel, back online tourism, recording a 35% surge in revenues to 567 million pesos.
07:07.1
We do know that Jerry has nine tourism estates and integrated lifestyle communities across the country, covering more than 3,300 hectares of land.
07:18.8
Shifting gears now, more investment pledges committed to the Philippines as the Trilateral Summit in Washington,
07:24.4
the White House announced Japan and the U.S. will open a string of investments across the Philippine island of Luzon to accelerate the impact.
07:34.1
The creation of high-impact infrastructure projects there, the so-called Luzon Corridor,
07:39.4
which will be part of the U.S. Partnership for Global Infrastructure and Investment, will connect Subic Bay, Clark, Manila, and Batangas.
07:47.4
It will also include investments in transportation, clean energy, and semiconductors, among others.
07:52.8
Philippine Ambassador to the U.S.
07:54.4
Jose Manuel Ramaldez earlier said the country is expected to receive at least $100 billion in investments from Washington and Tokyo over the next 5 to 10 years.
08:07.7
Some workers of local governments in Metro Manila will need to extend their working hours as part of a skeletal workforce between 4 to 5 p.m.
08:16.2
as agencies shift to the modified working hours schedule.
08:20.2
The Metro Manila Council earlier issued a resolution mandating,
08:24.4
LGUs in the Metro to adjust working hours in government offices to 7 a.m. to 4 p.m. from the current 8 to 5 p.m. window starting Monday, April 15th.
08:35.2
This is part of government's efforts to ease traffic congestion in the region during rush hours.
08:40.2
Metro Manila Council President San Juan, Mayor Francis Zamora says a skeletal workforce will be needed as the publics will still need to adjust to the new schedule.
08:54.4
Melinda Te 1985,qui рассказaw,
09:18.7
which estimates only
09:19.1
around 30 percent
09:19.7
of LGUs workforce will be affected
09:23.1
annual schedule because the city will not continue fund it.
09:23.7
New York City Council Member,
09:23.8
because the city has already been implementing flexible working hours.
09:30.9
The National Food Authority Council has approved a higher buying price for unhusked rice,
09:36.7
locally known as palay, to stay competitive.
09:39.6
Under the new guidelines, dry palay can be bought from 23 to 30 pesos per kilo,
09:45.2
while fresh palay will have a buying price of 17 to 23 pesos.
09:49.3
This is higher than the previous 19 to 23 pesos per kilo buying price for both fresh
09:53.7
and dry unhusked rice.
09:55.7
The move comes after NFA reported it has been struggling to procure palay this harvest season
10:00.6
due to lower prices compared to private counterparts.
10:04.4
Aside from the approval of higher buying prices,
10:06.9
the NFA Council also approved a program that will modernize their operations.
10:14.1
Some bad news for motorists.
10:15.9
All prices seen rising for a fourth straight week.
10:18.3
Next week, the Philippine Energy Department expects gasoline to increase
10:23.7
While diesel and kerosene may climb by as much as 1 peso next Tuesday.
10:29.6
The DOE still attributes the higher pump prices to the ongoing conflict in the Middle East,
10:34.4
particularly in Gaza.
10:40.7
Various government agencies preparing for next week's transport strike by Piston and Manibela
10:45.7
against the PUV modernization program.
10:48.5
The Philippine National Police says it is coordinating with the groups to identify areas
10:53.7
that will be affected by the rally.
10:55.6
It will also deploy mobility assets to help stranded passengers.
11:01.3
We will give them that day.
11:04.0
Of course, but we will exercise as usual the maximum tolerance
11:07.5
so that there will be no trouble if the day comes when they will really rally on our roads.
11:19.1
Meanwhile, the Land Transportation Franchising and Regulatory Board or LTFRB
11:23.3
assures the public there will be enough Libreng Sakay vehicles deployed,
11:27.9
especially in areas that are expected to see a shortage of public transport like Sukat and Quezon City.
11:34.0
It stressed the PUV consolidation must be completed by April 30,
11:38.9
a final extension as mandated by President Bongbong Marcos
11:42.3
where operators will have their franchises revoked.
11:45.2
The agency estimates 79% of operators have already consolidated.
11:53.3
Our first guest this morning comes from the family that's been making the so-called
11:57.7
King of the Road jeepney since 1947 or post-World War II.
12:02.6
An icon in Philippine transport, Francisco Motors has unveiled an ambitious plan
12:06.7
to manufacture modern jeepneys and under its Chupere Hero program,
12:11.9
give some of them away.
12:13.7
How? We're glad its chairman, Elmer Francisco, joins us live this morning.
12:17.9
Elmer, hi. Good morning. Thank you so much for taking our call.
12:20.9
Hi, Mimi. Good morning.
12:22.4
Thank you for having me in your show.
12:24.3
All right. Elmer, you know, much has been said about the PUV modernization.
12:28.1
So I want to start from a different angle.
12:30.1
You are a second-generation Francisco.
12:32.4
I understand it was your dad who set it up.
12:35.8
And you're passing the baton soon to your son as well.
12:39.1
I wonder, this PUV modernization program,
12:42.1
do you see this as the next leg of growth for Francisco Motors?
12:46.8
Yes, actually, that's something that we are looking at.
12:52.4
It's really a chance, not only for Francisco Motors,
12:55.2
but it's a chance for the Philippines to industrialize, finally.
12:59.4
So this is our chance.
13:00.6
So why are we giving it to foreign manufacturers
13:03.2
when we local manufacturers can build better jeepneys than what they are doing?
13:09.6
So that's actually our question.
13:13.7
Local manufacturers can build better jeepneys.
13:16.8
That takes me to my next question.
13:19.4
Do the local industry,
13:22.4
do the local industry have the manufacturing capacity?
13:25.2
Do we have the supply chain, the logistical chain,
13:27.7
and the financial muscle to take on this daunting task and compete?
13:32.9
If you think about it,
13:34.6
with China-made cars that are very cheap,
13:37.0
you can get them for as low as 500,000 pesos.
13:40.4
Yes, actually, Mimi,
13:41.8
I've always believed that we have to think big to solve smaller problems.
13:46.5
In fact, the jeepney manufacturing of Francisco Motors
13:49.7
is just a tiny part of the bigger project.
13:52.2
That we are doing because we are developing a special economic zone,
13:57.3
a 200-hectare special economic zone in Camarines Norte,
14:00.6
of which the jeepney manufacturing is just one of those locators in that economic zone,
14:07.8
wherein we are inviting all of the suppliers in the supply chain
14:12.6
of the manufacturing of electric jeepneys to locate in that special economic zone.
14:18.1
So this endeavor will generate a lot,
14:22.2
a lot of jobs for Filipinos here at home,
14:25.0
of which if we continue to import minibuses from other countries like China, India, or wherever,
14:33.3
we are taking away jobs that are supposed to be for the Filipino workforce.
14:37.4
So this is one of the reasons why Francisco Motors is doing this,
14:42.1
to preserve or to save the jobs that are supposed to be for Filipinos
14:48.1
and not export those jobs to other countries.
14:53.5
I'm personally curious,
14:54.9
I would like to know and visualize,
14:56.5
how does your manufacturing facility look like today?
14:59.7
We all know how the jeepney is iconic.
15:03.9
it's very rich in history.
15:05.7
But when you go to,
15:07.3
the Francisco Motors facility,
15:10.4
Do we see automated supply chains moving these jeepneys from one point to the next?
15:18.3
do we see lateros?
15:19.7
What's the plan here?
15:20.6
Do you buy the engines?
15:24.7
isasalpak na lang yung katawan ng jeepney?
15:29.1
How will this work?
15:34.9
we have been building jeepneys for 77 years already.
15:38.7
So ever since 1967 to 1959,
15:43.7
lahat yan surplus.
15:45.0
Galing yan sa military jeeps that were left by the US Army after World War II.
15:52.2
lahat ng jeepney na ginagawa ng Francisco Motors ay 100% brand new.
15:58.0
we brought in Isuzu to the Philippines.
16:00.1
So we used Isuzu engines from Japan.
16:02.5
Then we added Mazda in the 1970s.
16:05.8
So dalawang engines ang Francisco Motors.
16:07.9
So Isuzu and Mazda.
16:11.2
since we already dito sa POV modernization program,
16:14.8
we already have yung EVIDA,
16:16.9
yung Electric Vehicle Industry Development Act,
16:20.3
which was passed last,
16:24.0
which enables us to locally build or locally manufacture our own drivetrains,
16:29.8
our electric drivetrains.
16:31.7
we will no longer be importing engines from foreign manufacturers.
16:36.6
We will be mass producing them in our utility that we are building at Camarinas Norte.
16:42.4
So since you asked,
16:45.9
even in the 80s and 90s,
16:47.4
without automation,
16:48.3
without computers,
16:49.8
ang mass production or assembly line ng Francisco Motors,
16:50.9
ang assembly line ng Francisco Motors sa Las Piñas,
16:53.7
ay nakakagawa ng 12,000 units per year.
16:57.0
So ganoon ng ganoon natin kasi mass production yan,
16:59.2
hindi yan yung pok-pok-pok-pok sa backyard.
17:02.6
Hindi ganoon yan.
17:03.4
Mass production talaga yan.
17:04.5
Because Francisco Motors,
17:05.8
hindi lang naman jeepney ang ginawa natin.
17:07.9
We also built commercial vehicles,
17:13.1
yung mga Mazda na pick-ups,
17:16.6
We also brought in Hyundai from South Korea sa Pilipinas,
17:20.5
and Fiat from Italy.
17:21.9
So marami tayong ibang experience sa ibang mga vehicles.
17:25.6
Not only the jeepneys,
17:26.5
we also have the locally developed ANFRA na utility vehicle,
17:29.9
and Pinoy na utility vehicles.
17:33.6
what we're doing right now is,
17:34.8
yung sa Las Piñas namin na planta,
17:37.1
we already closed it down because we're transferring to Camarines Norte sa Special Economic Zone
17:42.6
so that we can avail of fiscal and non-fiscal incentives from the government
17:47.1
so that we could further lower the costs of production.
17:50.5
So natutuwa ko dahil ang pesa,
17:52.5
meron na silang domestic market enterprise of which we cater to the domestic market
17:57.2
aside from keeping our eyes on export because in the future,
18:03.6
we will be exporting.
18:04.7
So gagawa tayo dito ng ating mga electric vehicles.
18:07.8
And Francisco Motors has gone full electric.
18:10.8
So we will not be building fossil fuel powered vehicles anymore.
18:16.1
Then, aside from the battery electric vehicles,
18:20.5
going to the direction of hydrogen.
18:23.0
So hydrogen fuel cells for our land transportation and also for our EV tolls.
18:28.8
EV tolls are electric vertical take-off and landing vehicles.
18:34.2
you'll be seeing flying jeepneys.
18:38.1
But before we get to the flying jeepneys,
18:39.7
let's talk about the Special Economic Zone in Camarines Norte.
18:43.4
When will it be fully operational?
18:45.9
When are you making the big move?
18:48.0
And how many players
18:49.8
are currently signed up
18:51.6
for this Special Economic Zone?
18:53.4
It's a 200-hectare property, you say?
18:56.8
So it's a 200-hectare property.
18:59.8
Yan yung pinag-uusapan namin ni Governor Dong Padilla of Camarines Norte
19:04.8
and also Director General Teo Panga ng PESA.
19:09.0
So we will start developing the 30 hectares out of the 200 hectares.
19:15.1
Kasi yung 30 hectares, meron na yung presidential proclamation.
19:19.8
So we can already start developing that.
19:23.6
So nandun tayo sa point na yun ngayon.
19:27.6
We will be starting land development
19:29.7
and we will be putting our equipment,
19:32.2
our plant and equipment for the manufacturing ng mass production ng jeepneys,
19:36.8
ng electric jeepneys.
19:38.1
So we will also be mass producing the drivetrains there,
19:41.6
electric drivetrains and the batteries.
19:44.4
So we will have those locally produced, yung mga drivetrains.
19:48.6
Of which, hindi lang yan para sa flyers.
19:49.8
So hindi lang yan para sa flyers.
19:51.1
Ang plano namin, nakikipag-usap din kami sa ibang mga local manufacturers.
19:55.4
Katulad sila sa RAU.
19:57.0
We can also supply drivetrains to them and also local manufacturers.
20:01.9
Kasi hindi naman madamot si Francisco.
20:03.8
So we are sharing.
20:05.1
So you're confident, Elmer, that you can gather the key critical suppliers
20:12.2
needed to set up an EV supply chain in that ecozone?
20:18.1
So we are starting. But alam mo,
20:19.6
ang Francisco Motors kasi hindi kami bago dun sa electric na space.
20:26.1
Because since the 1980s, meron na tayong electric jeepneys.
20:30.6
1980s pa. Pero of course, the battery technology back then was different.
20:35.6
Lead-acid deep cycle pa yung batteries noon. Ngayon, lithium na.
20:40.6
Then, like what I said, soon enough, maybe by next year,
20:44.6
we will replace already the lithium batteries with hydrogen fuel.
20:49.6
What is the difference, Elmer, for those who are not technical,
20:53.1
what's the difference between EV that runs on lithium versus hydrogen fuel cell?
20:58.1
Number one difference, the range.
21:00.6
So yung range niyan, ang battery kasi, very limited ang range.
21:05.6
Kasi as you add more batteries, bumibigat yung sasakyan.
21:08.6
So yung range mo, parang hindi na nagiging efficient.
21:11.1
So you can go as maybe 400 kilometers or 500 kilometers.
21:15.6
With hydrogen, you can have more range.
21:18.6
Like 500 to 900 kilometers.
21:21.1
Kasi ang battery electric, you charge it sa charging stations,
21:25.6
of which Francisco Motors din ang maglalagyan ng charging stations
21:30.1
sa lahat ng lugar na magde-deploy tayo ng electric jeepneys.
21:33.1
But with hydrogen, you will just refuel it with hydrogen, green hydrogen.
21:37.6
So yung part din yung ginagawa ng Francisco Motors in collaboration with different companies,
21:43.1
both local and foreign, will be producing green hydrogen.
21:48.6
So it will be renewable sources.
21:50.6
Alright, so from this special economic zone, let's talk about your Chupere Hero program.
21:56.6
You've actually been pitching this to government,
21:59.6
but I heard it's taking a very long time to get approvals,
22:03.6
considering that you plan to give away some of these EVs to drivers.
22:09.1
How will this work? What's the business model here?
22:11.6
You own the electric jeepneys and the operators are just partners.
22:16.6
How about the drivers?
22:18.6
What's the process?
22:19.6
Okay, the Chupere Hero program.
22:21.6
First, sinong mga pwedeng sumali sa Chupere Hero program ng Francisco Motors?
22:25.6
Ito yung proposal natin sa DOTR and sa LTFRB,
22:29.6
of which yung pag-uusap namin ay ongoing.
22:33.6
Nagpapasalamat nga po sa inyo, pati sa ibang mga kasamahan natin sa media,
22:38.6
dahil nang dahil sa inyo, medyo bumilis-bilis ng konti yung pagsagot ng LTFRB.
22:44.6
So before our interview, I was in another interview,
22:48.6
the new USEC of Department of Transportation, si Andy Ortega,
22:53.6
is now coordinating with me.
22:55.6
And he's also talking to chairman Guadiz of LTFRB on the best way forward.
23:02.6
So I'm very optimistic na nandyan si USEC Ortega na he's been two days as USEC,
23:10.6
but he was the chairman of OTC before that.
23:13.6
I'm very confident na medyo bibilis yung process ulit.
23:17.6
So what is the process? How will this work?
23:19.6
Yes, so the Superhero Program is ang pwedeng sumali dito ay yung mga jeepney operators with valid franchises.
23:26.6
So it could be yung mga transport cooperatives, transport corporations.
23:30.6
So ang nagbibigay naman ng valid franchise is LTFRB.
23:34.6
So it's part of it. So lahat sila pwedeng sumali.
23:37.6
And lahat ng sasali, meron sila mga lumang jeep.
23:40.6
So yung mga lumang jeep nila, we can still use them to operate them
23:47.6
Nalumaki yung kita nila because we will have the unlimited rides na tickets.
23:52.6
Isa yan sa proposal natin sa LTFRB of which pinag-aaralan nilang mabuti.
23:57.6
Yung unlimited rides, it's just like sa ibang developed countries
24:01.6
na kapag sumakay ka ng train, you can buy a ticket,
24:04.6
you can hop on, hop off unlimited times in a day or in a week or in a month.
24:08.6
So depende sa ticket na bibiliin mo.
24:10.6
So kung kayang gawin nyo ng developed countries, why can't we do it here sa Philippines?
24:15.6
So of course, I understand that LTFRB, it's a good thing.
24:17.6
I understand that LTFRB has to follow some existing rules and regulations, existing laws.
24:22.6
But of course, we can never have progress if we will just follow the old rules, old laws
24:28.6
na dekadekada na rin katanda yung mga rules na yan.
24:32.6
So we have to change certain things for us to have real progress.
24:37.6
Now, why are we doing this?
24:39.6
Ang problema kasi ng mga operators natin is the cost ng mga sasakyan.
24:45.6
So kung ang problema nila ay cost, ang solusyon is hindi pa utangin.
24:50.6
We create a business model na hindi yung lulubog sila sa utang.
24:54.6
We create a business model that is sustainable enough that we can actually give the jeepneys for free.
25:00.6
Kasi dito sa model na ito, we will have yung unlimited rides nga.
25:04.6
So dito sa unlimited rides tickets na ito, diyan kukunin yung sweldo ng mga drivers,
25:09.6
diyan kukunin yung kita ng mga transport cooperatives.
25:13.6
Of course, Francisco Motors will have a profit also because we are a social enterprise.
25:17.6
It's a business. Hindi naman kami DSWD.
25:20.6
Elmer, but you mentioned earlier, pwedeng gamitin ng mga operators yung mga lumang jeepney nila.
25:28.6
So you will convert these jeepneys?
25:31.6
No. Pwede pa nilang gamitin yung jeepneys nila.
25:35.6
Kasi ang rule ng LTFRB is from the approval ng LPTRP or Public Transport Rules,
25:43.6
from that approval, binibigyan sila ng 27 months or a little more than 2 years
25:49.6
to replace the old jeepneys with modernized units.
25:54.6
Yes. So within that period, ang gagawin natin, continue pa rin.
25:59.6
So magkakonsolidate sila.
26:01.6
Then tuloy-tuloy pa rin, gagamitin pa rin yung mga old jeepneys nila
26:06.6
hanggang sa unti-unti natin mapalitan ng modernized units.
26:10.6
But the difference is wala silang kailangan bayaran.
26:12.6
We will give these jeepneys to them for free.
26:15.6
Then aside from that, ang maintenance ito kasi under warranty.
26:19.6
Lifetime yung ano niya, yung warranty niya.
26:21.6
So yun yung maganda.
26:23.6
So ang maganda dyan, yung mga pasahero makakatipid din sila dahil doon sa unlimited rides.
26:30.6
So instead of paying every time sasakay sila, they'll just be paying once in a month.
26:34.6
Alright. Elmer, just very quickly, we're showing live footage from the Philippine Stock Exchange.
26:40.6
This is coming to us live from
Taguig.
26:43.6
The countdown to the special bell ringing.
26:46.6
This is for the listing of Cebula and Masters.
26:49.6
Five billion pesos to follow on offer.
26:51.6
Three, two, and one.
26:54.6
I hope we have a sound here.
26:57.6
Alright, just imagine the sound.
26:59.6
But it's a special.
27:00.6
We are seeing Mr. Sobedano, the father.
27:03.6
His son, Joe, shaking hands now with PSC President Ramon Monzon.
27:09.6
From the bell, wearing a gray suit.
27:12.6
We just had him about a few weeks ago.
27:14.6
That's Grant Chang, the CFO.
27:17.6
So again, this is for the five billion pesos to follow on offer of Cebula and Masters.
27:21.6
This comprised of five million Series A preferred shares.
27:24.6
One thousand apiece issued in two sub-series.
27:27.6
That's Series A1 and A2.
27:29.6
The funds raised will be used to partially finance project development and capex.
27:33.6
The Wisman developer, as we reported a few weeks ago, posted a 29% growth in full year 2023.
27:38.6
Consolidated at income at 4.6 billion as revenue grew 20% to nearly 19 billion pesos.
27:45.6
More on that later.
27:46.6
I think we can go back to Elmer just very quickly.
27:50.6
Sorry about that.
27:51.6
We just had to bring in the live shots from the stock exchange.
27:55.6
Actually, it's like I heard the actual ringing of the bell.
27:58.6
The Philippine Stock Exchange is just next door.
28:02.6
Elmer, just speaking of investors.
28:05.6
Maharlika Investment Fund is key.
28:07.6
The Philippine Stock Exchange Fund is keen on putting money into your project, into your ambitious plan.
28:12.6
Where are you on that?
28:14.6
Yeah, we're talking.
28:15.6
We haven't agreed on anything yet.
28:17.6
Anything concrete.
28:18.6
We're talking si Joel Conzing, pati yung board ng Maharlika.
28:23.6
But what we are talking about are about the terminals.
28:26.6
Because Francisco Motors, hindi lang jeepney ginagawa natin.
28:29.6
Like what I mentioned, the manufacturing is just a tiny part of the bigger plan.
28:34.6
Part of it is we will put up terminals.
28:37.6
We have an ambitious plan of putting up 100 terminals.
28:40.6
That's one for each province, 82 provinces.
28:44.6
Then 17 sa Metro Manila and one Central.
28:47.6
So ang pinag-uusapan namin ng Maharlika Investment Corporation is for them to fund the first terminal.
28:53.6
So yun pala yung pinag-uusapan namin ngayon.
28:55.6
Of which ang pinag-uusapan namin is I'm coordinating with the Office of House Speaker of all this.
29:02.6
Because we are looking into idle government properties.
29:06.6
Owned by the national government.
29:08.6
Because with that, magiging yung non-performing asset ng government magiging revenue generating.
29:15.6
Aside from that, we don't have to buy the property.
29:18.6
So makakatipid tayo dun.
29:20.6
It could be a tripartite agreement.
29:22.6
So owned by the national government.
29:24.6
Then Maharlika Investment Corporation may fund the development.
29:29.6
Then we can operate the terminal.
29:31.6
Sa terminal, magkakaroon niya ng ano.
29:33.6
Of course, yung mga modernized jeepney.
29:36.6
Diyan yung terminal.
29:37.6
We'll have service base after sales parts.
29:40.6
And we'll have depots for our charging stations and hydrogen.
29:45.6
So yan yung isang pinag-uusapan namin ng MIC.
29:49.6
How much investments will the MIC need to make?
29:52.6
To make this work?
29:53.6
Because you're looking at them funding just one.
29:55.6
The first one, right?
29:57.6
Actually, for the whole project, yung 100 terminals, that would cost us around $200 million.
30:05.6
I'm sorry, $500 million.
30:08.6
But since it's one terminal, let's just do the math.
30:12.6
It's around $5 million.
30:16.6
Yes, for the first terminal.
30:19.6
And how do you plan to bankroll the rest of the 99 terminals that you plan to set up?
30:26.6
Actually, aside from internal funding, we also have negotiations.
30:32.6
Ongoing negotiations.
30:33.6
With many different financing companies, financing institutions, both foreign and domestic.
30:40.6
So yung sa foreign, medyo malaki-laki din.
30:44.6
They're very interested.
30:46.6
Alam mo, ang pinaka-interesado sila is the green portion of it.
30:50.6
Kasi ano nga eh, renewable energy, renewable sources, electric vehicles.
30:55.6
Then we're going for hydrogen.
30:57.6
Then aside from that, I also got a pledge two days ago of which ina-announce yan ngayon.
31:03.6
As we speak, ina-announce yan ngayon ni Climate Change Commissioner Albert de la Cruz sa Kapihan sa Manila Hotel.
31:10.6
Our COO, Mr. Christian Sano, says there with him.
31:14.6
Right now, i-announce niya yan.
31:15.6
Dahil nag-pledge siya ng 200 million pesos para dito sa project na ito.
31:20.6
For ano, igagawa natin yan ng mga electric jeepneys for us to give away for free.
31:25.6
And Elmer, how many electric jeepneys are you looking to give away for free again?
31:30.6
As many as we can, actually.
31:33.6
Because with this business model, Mimi, we can give all jeepneys for free.
31:40.6
With this business model that we did, yun sa Superhero Program, of which niya nagkuya ng klarong-klaro sa LTFRB.
31:47.6
I understand that their hands are tied, they have to follow certain rules.
31:50.6
But the way to move forward is to keep the communications open so we can work on possible solutions.
31:58.6
Because we're not ano eh, madali naman kaming kausap.
32:01.6
So we can make adjustments dun sa mga policies.
32:05.6
Pati kung meron tayong kailangan sundin ang existing policies, we can do that.
32:10.6
Final question, Elmer.
32:11.6
Are you looking at welcoming new investors into Francisco Motors?
32:15.6
Maybe tapping the capital markets?
32:20.6
Yes, we are talking.
32:22.6
Actually, nag-uusap kami.
32:24.6
Kahit SEC, nag-uusap kami regarding that.
32:27.6
But for now, alam mo.
32:29.6
Sabi mo nga, Mimi.
32:30.6
It's an ambitious plan.
32:32.6
My plan is to go for the unicorn status.
32:35.6
So we're not going public anytime soon because we have a unique situation here and it's achievable.
32:42.6
Maganda na meron tayong Filipino-owned and Filipino-grown company to become a unicorn.
32:49.6
So a unicorn is a business that is valued at least one billion dollars.
32:54.6
Then we'll go public.
32:56.6
Okay. And when will this unicorn be born?
33:00.6
Ano eh, ginagawa pa namin eh.
33:04.6
We will let you know.
33:07.6
Hopefully before that.
33:09.6
Alright. On that note, Elmer, thank you so much for joining us, for walking us through the manufacturing requirements of a modernized jeepney.
33:17.6
We are very excited to see what you will do with the Chaper Hero program and for this unicorn to be born.
33:23.6
Thank you again and have a great weekend.
33:26.6
Alright. Now, here's a look at the other stories.
33:29.6
We're tracking in the newsroom today.
33:31.6
Happening within the hour, the Franchise Asia Philippines Expo 2024 will kick off with over 700 franchise brands expected to attend.
33:41.6
In the next hour at around 10, the Metro Manila Council will discuss adjustments in the working hours of government offices in the Metro to ease traffic congestion.
33:50.6
And we'll also monitor today the continued trilateral summit between the Philippines, Japan, and the U.S.
33:59.6
Time for a short break.
34:01.6
Coming up, now on a six-day losing streak, could the PSEI be primed for a rebound?
34:06.6
Market Chat with Ferdinand Subito of AP Securities is next.
34:09.6
When we return, stay with AMC.
34:29.6
We'll keep you up to date on all the latest news.
34:44.6
I've been going to.
34:47.6
New York to answer to.
34:51.6
Welcome children.
34:54.6
And the parents discussing their children's playhouse comes this afternoon.
34:57.6
You're still watching Market Edge.
34:59.8
The headlines, U.S. President Joe Biden vowing an ironclad commitment
35:03.8
to defend the Philippines in the face of China's growing maritime aggression.
35:11.2
Former President Rodrigo Duterte denies conceding anything to China during his administration.
35:19.4
And disgraced football hero O.J. Simpson dies of cancer.
35:24.3
The PSE Index tumbled back to the 6,600 level on Thursday, down 1%.
35:32.3
His net foreign selling hit a quarter of a billion.
35:35.7
Joining us now for more in the markets is Ferdinand Subito.
35:38.8
He is Senior Research Analyst at AP Securities.
35:42.7
Ferdinand, hi. Good morning.
35:45.3
Hi, good morning. Thanks for having me today.
35:47.6
All right, so it seems like it's pretty listless.
35:49.9
This market's pretty confused where to go.
35:52.4
The market is trading flat.
35:54.3
We're up by just 2 points, 66.79.
36:00.1
You know, in the next few weeks, earnings become the next big driver of markets.
36:04.4
Do you think the Q4 season raised the bar so high
36:07.4
and estimates have raised substantially
36:10.0
that it becomes extra tough, tougher for local companies to top, even meet the expectations?
36:17.0
I mean, what are you expecting to see for Q1 earnings?
36:22.2
All right, actually on that,
36:24.1
I don't really think that the Q4 earnings really raised the bar that high.
36:29.0
Actually, we were monitoring our roster of covered companies
36:32.8
and we actually saw that while there was still a significant number of outperformers,
36:37.7
there was actually also quite a solid number of performances
36:41.3
that were just in line with analyst estimates
36:43.6
along with a handful of results that were below what consensus was expecting.
36:49.6
So, looking ahead to Q1 earnings,
36:55.5
we would most likely still see earnings that are more or less in line with analyst expectations.
37:01.7
So, on the banking side,
37:07.7
lending revenues would still be quite hefty
37:10.7
given that we are still in a high-rate environment
37:13.4
and coupled alongside with this,
37:15.3
we are seeing some strengthening in loan growth as well.
37:18.8
And then on property,
37:20.8
malls have been actually quite a strong driver for property,
37:24.1
for property revenues.
37:25.4
So, that's one factor we're looking out for in that.
37:28.9
And then for consumer though,
37:30.5
I think that's one probably sector wherein we might still see some weakness
37:34.9
given that high cost of living have really weighed on the spending habits of consumers.
37:41.8
we could still see some possible scrimping by consumers
37:45.6
when it comes to their expenditures.
37:49.3
So, we are expecting,
37:51.0
you did talk about banks,
37:52.2
they tend to kick off the earnings season.
37:54.1
The sector has been one of the better ones in the last quarters because of rates.
37:58.8
So, we are watching out for banks.
38:02.0
So, is there a number that you're looking at,
38:03.8
an average corporate earnings growth for Q1?
38:09.4
I think I'm expecting average corporate earnings growth
38:12.4
of still in the low to mid-teens actually.
38:17.1
In general, across the board,
38:20.3
Across the board,
38:21.1
probably around high single digits
38:23.0
to mid to high-end.
38:24.1
I think that's reasonable to expect.
38:27.0
Ah, mid to high single digits.
38:29.3
And when you zoom out a little bit,
38:32.3
outside of the earnings season,
38:34.2
did anything change for you this week?
38:37.4
I mean, we got inflation print from the U.S.,
38:40.0
we got the BSP's hawkish commentary on Monday,
38:44.7
hawkish pause there.
38:46.3
Is there anything that you're seeing that seems to validate
38:48.9
what many have already started to talk about a couple of weeks ago,
38:52.1
that there will be no rush?
38:55.3
Does this market feel like it's rushing
38:57.2
or does the market feel like it's accepting
38:59.3
and starting to, you know,
39:01.4
just accept the fact that these rate cuts
39:03.2
will not happen as soon as we all hoped?
39:07.0
Well, definitely, yeah.
39:08.3
Yesterday, following the release of CPI figures in the U.S.,
39:12.6
that was a big talking point among investors in the market.
39:16.2
So, on our end, yes,
39:18.0
we're actually subscribing to the notion
39:20.4
that rate cuts here at home
39:22.5
might potentially be delivered,
39:24.1
so initially, we were looking at the month of June
39:27.2
for our first rate cut,
39:28.6
but now we're pushing this back a little bit to August.
39:32.8
So, our reasoning here is that
39:35.3
while, yes, the BSP has communicated in the past
39:38.5
that they would want monetary policy
39:40.7
to now be more disconnected from the Fed's movement,
39:44.0
it still can't be ignored that the movements
39:46.8
of the Federal Reserve with regards to rates
39:49.1
will still have an impact on the currency.
39:51.7
So, while there may be an impact
39:53.7
on the price of the currency,
39:54.0
on the USD-PESA side,
39:56.3
simultaneously, the BSP cannot afford to delay for too long
40:00.4
given that that might result in headwinds already
40:04.4
for our already struggling GDP growth.
40:08.4
So, which is why we landed at the middle ground around August.
40:12.9
So, you're expecting rate cuts to begin in August,
40:16.4
a middle ground, as you say.
40:17.8
How many cuts and how deep?
40:20.4
We're factoring in around three rate cuts,
40:24.0
a total of 75 basis points.
40:26.6
Probably the highest,
40:27.8
it can go would be around 100
40:29.3
if ever growth really starts to struggle.
40:33.6
we were talking about this since last year.
40:36.1
When rates start going down,
40:37.6
it's going to be party time for equity investors.
40:40.6
So, what is your year-end forecast for the PSEI?
40:44.0
I mean, if we're going to be chatting
40:45.2
December this year,
40:47.6
at the end of this year,
40:48.8
where do you think the index will be by then?
40:52.5
Actually, we're still...
40:54.0
we're still sticking true to our conviction
40:56.7
of around 7600 by year-end.
41:00.9
this is actually quite reasonable
41:02.3
given that our forecast factored in
41:05.0
around only three rate cuts
41:06.6
along with modest earnings growth for the PSEI.
41:10.8
So, we're still sticking true to that, yeah.
41:13.0
That's actually one of the more aggressive
41:17.3
Many are saying it's 71, 72,
41:19.7
and we're almost there already.
41:21.1
But you guys are at 76.
41:22.4
We're coming from...
41:23.5
Let me just check where we're coming from.
41:25.7
We actually ended last year at 64.
41:30.0
So, that's over 10% gain,
41:32.9
yield from the index year on year.
41:36.1
If we do end at 76,
41:38.4
a welcome development considering we've had,
41:40.5
what, three, four years of negative returns.
41:43.4
I think we are now ready for your blind item.
41:47.0
Oh, but before that, we have this.
41:48.7
Today, we had the listing
41:50.9
for the follow-on offer of Cebula and Masters.
41:53.5
And now, we're getting this.
41:54.7
Arthalan Corporation is set to offer
41:56.7
up to 4 million peso-denominated preferred shares
42:00.3
with an oversubscription of 2 million
42:02.8
at an offer price of 500 pesos per share.
42:06.4
Are you seeing encouraging signs
42:09.3
from fundraising activities
42:11.1
at the stock exchange at this point?
42:16.6
mostly, the capital raising
42:18.6
we've just been seeing is in preferred shares.
42:23.5
the preferred shares offering
42:24.8
is meant to leverage
42:27.9
the appetite of investors for fixed rates
42:30.5
given that, you know,
42:31.8
the expectation eventually down the line
42:34.1
is for rate cuts.
42:35.0
So, companies are likely saying,
42:37.4
all right, let's capture
42:40.8
whatever segment of investors there
42:43.4
that would be satisfied
42:45.0
with relatively high rates
42:46.6
given that next year,
42:48.0
rates will likely be lower.
42:49.8
So, the high preferred dividend rates
42:53.5
the opportunity to lock in those higher yields
42:56.5
compared to what they would likely get by next year.
42:60.0
However, for the coming months,
43:02.0
I think, in order to truly gauge
43:04.9
the success of capital raise,
43:07.5
the state of capital raising in the market this year,
43:10.1
we would have to look at the upcoming
43:12.0
CREC IPO as our benchmark.
43:14.6
So, if that goes well,
43:16.0
then most likely,
43:17.9
that could raise some further optimism
43:19.8
amongst corporates here in the capital market.
43:23.5
So, that would further entice
43:27.5
investors to place their money
43:29.6
in new fundraising
43:31.9
the benchmark would provide
43:35.5
positive performance
43:36.5
if ever the CREC IPO goes well.
43:41.2
Lots of things to watch out for.
43:43.3
I think we're ready for your blind item.
43:44.9
Talk to us about the stock
43:45.8
that you're monitoring closely
43:47.2
and that you like.
43:48.3
Don't tell us, just describe.
43:50.4
We're going to leave our viewers to guess what this is.
43:51.8
What do you have for us today?
43:55.0
it's kind of tricky to describe
43:56.9
without giving it away.
43:59.9
I'll just try to be very general about it.
44:03.4
It's a property company.
44:06.7
It's been expanding globally.
44:11.9
You're giving it away.
44:19.2
Well, it has a number
44:20.5
of significant properties,
44:23.8
in the Pasay area.
44:26.7
And we're seeing around
44:29.1
at least 27% upside
44:31.7
given that recent overseas
44:35.0
capital raising initiatives
44:37.1
have really jacked up the value
44:39.0
of one of its subsidiaries.
44:40.7
And it just celebrated
44:42.6
its 10th year listing anniversary yesterday, right?
44:49.2
27% upside in the next 6 to 12 months, correct?
44:55.7
I think it was a giveaway,
44:57.7
Thank you so much, Ferdinand,
44:59.7
It was a pleasure to speak with you
45:00.9
and picking your brain this morning.
45:02.5
We'll see you soon.
45:03.2
Have a great weekend.
45:05.0
Have a good day, too.
45:07.4
The venture capitalist blitz
45:09.7
urging government
45:10.4
to proceed cautiously
45:11.8
with AI regulations
45:13.5
to foster greater opportunities
45:15.1
without stifling innovation.
45:17.6
Nations have been actively pursuing
45:19.4
the regulation of the new technology
45:20.9
due to its potential
45:22.0
to surpass the market.
45:22.8
And to surpass human intelligence
45:23.7
which could result
45:24.7
in unintended consequences.
45:26.8
Now, in November last year,
45:28.9
including the U.S.,
45:30.3
and those from the EU,
45:34.1
a unified approach
45:38.8
There has been a lawsuit
45:40.4
or regulatory lawsuit
45:43.1
One of the countries
45:44.8
for indexing their content
45:47.3
and turning it into AI.
45:48.7
And it's hundreds of billion dollars
45:51.0
Europe has put forth
45:52.8
regulations around AI
45:54.8
from U.S.-based countries.
45:57.0
Now, the upside of this
45:57.8
is it protects their culture.
46:00.1
is it reduces the opportunity
46:02.7
in their own cultures.
46:04.9
countries' instincts
46:07.9
technically Silicon Valley
46:09.6
and the Seattle area
46:10.7
where a lot of these technologies
46:12.9
But they need to be careful.
46:14.9
in the wrong way,
46:15.7
their entrepreneurs
46:16.3
are not going to want to build
46:19.0
that their country may.
46:20.2
They're just not going to flee
46:21.3
in kind to the West Coast,
46:22.8
which is happening
46:27.4
Time now to zip through
46:28.6
the top headlines
46:29.3
from major business papers
46:30.4
from Business World.
46:31.9
Philippine rice imports
46:33.0
totaled 1.15 million metric tons
46:36.0
in the first quarter.
46:36.9
That's up 44% year on year.
46:39.3
The country's Plant Industry Bureau
46:40.6
says Vietnam remains
46:42.1
the country's top supplier of rice,
46:44.3
accounting for 62%
46:48.2
From Business Mirror,
46:49.2
Manila ranks 121st
46:51.0
out of 142 cities
46:54.9
that measures cities' readiness
46:56.9
of advanced technologies
46:58.2
to foster sustainable communities.
47:00.8
The Philippine capital's ranking
47:02.1
in this year's Smart City Index
47:03.5
was six notches lower
47:05.7
than its 115th finish last year.
47:09.6
And from the Philippine Star,
47:11.1
the Philippine Education Department
47:18.0
public schools nationwide.
47:19.9
That's about 10%.
47:21.0
A little more than 10%
47:22.3
have suspended in-person classes
47:24.6
due to the hot weather
47:25.7
worsened by the El Nino phenomenon.
47:30.5
Now, here's a quick look
47:31.8
at the Flash Business headlines
47:35.5
sentences real estate tycoon
47:40.6
in a $12 billion fraud case.
47:44.2
of Van Tran Phat Group
47:45.8
was arrested in 2022
47:47.4
for charges including
47:49.0
bribery of government officials
47:50.4
and violation of bank lending rules.
47:52.3
She was also accused
47:53.5
of embezzling funds
47:55.0
from Saigon Commercial Bank
47:57.5
between 2018 to 2022.
48:00.5
Lan's trial put the spotlight
48:01.7
on Vietnam's years-long
48:03.2
anti-corruption campaign
48:04.5
spearheaded by the Communist Party.
48:09.1
shares of Morgan Stanley
48:11.8
to nearly $87 on Thursday,
48:14.4
the most in five months
48:16.7
that U.S. regulators
48:19.1
the firm's efforts
48:19.9
to prevent potential money laundering
48:21.6
by wealthy people.
48:24.1
focused on the firm's
48:25.0
wealth management arm
48:26.1
generating almost half
48:27.4
the company's revenue
48:29.9
The U.S. government
48:30.6
has been ramping up
48:31.5
pressure on the industry
48:32.6
to tighten money laundering
48:37.5
UBS might need to retain
48:38.9
$10 to $15 billion
48:39.9
in excess capital
48:41.1
after the Swiss government
48:43.3
for tougher capital requirements
48:45.4
for the enlarged lender.
48:47.5
Autonomous research analyst
48:48.8
Stefan Stallman says
48:52.2
to 300 basis points more
48:55.5
which is a measure
48:56.5
of a bank's resilience.
48:58.1
The government's recommendations
48:59.3
is part of New Switzerland's
49:01.3
efforts to shield the country
49:04.4
of Credit Suisse.
49:07.3
Ford's set to ship
49:09.6
of its redesigned F-150,
49:12.0
its best-selling model
49:13.2
and ranger pickup truck
49:14.4
to North American dealers.
49:16.2
Ford stopped the shipment
49:17.2
of these vehicles earlier
49:18.2
due to quality problems.
49:23.7
pre-tax profit target
49:25.6
of $10 to $12 billion.
49:31.9
its entire Mac line
49:33.3
with a new family
49:34.1
of in-house processors
49:35.2
designed to highlight
49:36.5
artificial intelligence.
49:43.1
nearing production
49:44.0
of the next generation
49:48.5
at least three main varieties
49:49.8
and Apple is looking
49:53.9
are part of Apple's
49:55.4
to weave AI capabilities
49:56.7
into all of its products.
50:00.8
Taylor Swift's music
50:01.8
now back on TikTok
50:03.0
despite an ongoing dispute
50:04.3
between her record label
50:05.5
and the social video platform.
50:08.3
Universal Music Group
50:10.1
of its recording artists
50:11.7
from TikTok in February
50:14.9
on a new licensing agreement.
50:18.3
to adequately compensate
50:21.3
accused the record label
50:22.3
of putting its own interests
50:23.6
above that of the artists.
50:25.2
The timing also coincides
50:26.6
with the impending release
50:27.6
of Swift's newest album
50:28.9
The Tortured Poets Department
50:35.0
It's next Friday.
50:36.3
We're all excited.
50:38.3
for those who tried
50:39.0
to guess the blind item
50:40.9
it's pretty much a giveaway.
50:42.9
It's a double dragon
50:45.7
in the next 6 to 12 months.
50:48.4
Do tweet us at ANC Alerts.
50:50.3
that's it for the show.
50:51.3
I'm Michelle Long.
50:52.2
Thank you so much for watching.
50:53.8
Stay safe and stay with ANC.
50:55.7
Have a great weekend everybody.
