01:02.0
Over on Wall Street, futures are pointing to a negative open as traders assess first-quarter earnings reports from big banks.
01:08.6
The Dow and the S&P 500 are on pace for weekly losses following a hotter-than-anticipated inflation reading this week that raised bets of higher for longer rates.
01:21.0
But Boston Fed President Susan Collins told Reuters,
01:24.6
She's eyeing a couple of interest rate cuts this year.
01:29.9
Here are some stocks to watch out for. We're monitoring shares of Intel and AMD after the Wall Street Journal reported China is looking to face out American chips in a bid to reduce its reliance on foreign technology.
01:42.5
Both stocks are down 2% in pre-market trading.
01:45.9
Also in focus, shares of BlackRock after the asset management giant boasted better-than-expected first-quarter results.
01:53.0
BlackRock shares are up 3%.
01:54.6
We're also keeping a close watch on shares of JPMorgan Chase, which topped profit expectations as it earned more from interest payments.
02:03.9
Shares of the banking giant, though, plunged 4% in the pre-market.
02:08.3
The CEO, Jamie Dimon, called for caution, citing persistent inflation and geopolitical tensions.
02:16.1
Meanwhile, Asian markets ended the week mostly lower following disappointing trade numbers from China.
02:22.5
Data showed exports in March plunged.
02:24.6
7.5%, while imports unexpectedly shrank 1.9% due to soft overseas demand and tight global monetary policy.
02:34.9
Both figures missing forecasts by big margins, highlighting China's shaky economic recovery.
02:42.0
Worries over the health of the world's biggest economy sent to Hong Kong-Hang Seng tumbling more than 2%.
02:47.5
Investors in the region also digested the policy decisions of the Singapore and South Korea central banks,
02:53.9
which most of the time, they're not sure if they're going to be able to make it to the top.
02:54.0
So, let's keep an eye out for that.
02:54.0
We're also keeping a close watch on shares of JPMorgan Chase, which topped profit expectations as it earned more from interest payments.
02:54.1
We're also keeping a close watch on shares of JPMorgan Chase, which topped profit expectations as it earned more from interest payments.
02:54.2
which both kept interest rates unchanged.
02:57.0
Now, here at home, Philippine shares extended their losing streak to seven sessions,
03:01.4
with the main index logging a weekly loss of 1.3% in the holiday-shortened week.
03:09.5
I think the market has slowly been coming to terms, though.
03:13.6
First, with the declining probabilities of early and big cuts in rates.
03:18.8
Somehow, pH growth targets are still neutral at worst.
03:24.1
The strong economy continues to surprise, which is actually the biggest contributor of the reduced expectation for lower rates this year.
03:31.9
So, if what we see in the PSEI is of any clue, I think it is the market possibly telling us that it is discounting these factors already.
03:40.5
Although we don't know yet how far this discounting would go, especially lower for the PSEI,
03:47.3
but I think this is the market already telling us that these factors concern us.
03:51.3
So, maybe you wait.
03:52.7
Maybe you wait for this concern to pan out, and maybe we can see the fundamentals more clear in the coming days or weeks.
04:05.2
China remains confident its imports and exports remain in the growth channel in the first half of the year,
04:11.5
despite shrinking trade in March.
04:13.9
The Chinese Customs Bureau cites improving global trade.
04:17.1
Policymakers have been rolling out support measures to bolster a shaky economic recovery.
04:22.9
On Wednesday, China received a negative downgrade on its sovereign credit rating from Fitch,
04:28.3
which cited economic uncertainties.
04:33.1
The Philippines, U.S. and Japan wrap up their historical trilateral summit in Washington
04:38.7
with the allies agreeing to further deepen their maritime and security cooperation
04:43.1
amid China's aggressive incursions in the South China Sea.
04:47.0
Tokyo and Washington also vowed to pour in investments to Manila
04:49.9
to help make the Southeast Asian country more resilient.
04:53.2
Katrina Domingo reports.
04:57.8
The Philippines, Japan and the United States will work to build an open and free Indo-Pacific.
05:03.2
This is what President Joe Biden told his Filipino and Japanese counterparts
05:06.5
during their first trilateral summit,
05:08.9
where Manila, Tokyo and Washington condemned China's illegal and dangerous actions in the South China Sea.
05:14.6
A great deal of history in our world will be written in the Indo-Pacific over the coming years.
05:19.9
As the three allies,
05:23.1
and three proud democracies
05:25.5
representing a half a billion people.
05:28.5
Today, we commit to writing that story in the future together.
05:34.1
To building an Indo-Pacific that is free,
05:39.0
and secure for all.
05:41.8
Among the initial steps to achieve this goal,
05:44.7
the conduct of more combined naval and maritime exercises.
05:48.6
Washington is expected to train some American, Filipino and Japanese personnel
05:52.4
aboard the Indo-Pacific.
05:53.1
The United States will be the first to board a U.S. Coast Guard vessel this year,
05:54.9
while fresh drills will be held around Japan in 2025.
05:59.0
Biden also reiterated a stipulation from the Mutual Defense Treaty
06:02.2
that the U.S. will come to the aid of its allies in the event of an armed attack.
06:07.1
The United States' defense commitments to Japan and to the Philippines are ironclad.
06:13.5
Any attack on Philippine aircraft, vessels or armed forces in the South China Sea
06:18.7
would invoke our Mutual Defense Treaty.
06:22.7
Philippine President Ferdinand Marcos adds
06:25.4
this closer cooperation involving the three countries
06:28.4
will help secure a safer future for the region.
06:32.1
It is a partnership born not out of convenience nor of expediency
06:36.3
but as a natural progression of a deepening relation
06:40.5
and robust cooperation amongst our three countries.
06:44.5
Linked by a profound respect for democracy, good governance and the rule of law.
06:51.0
For Japanese Prime Minister,
06:53.7
it is very natural for the Philippines, Japan and the U.S.
06:57.0
to become allies as the three countries adhere to the rule of law.
07:01.2
In the midst of compound crisis faced by the global community,
07:06.4
multi-layered cooperation between allies and like-minded countries
07:10.8
is essential if we are to maintain and bolster a free and open international order
07:16.1
based on the rule of law.
07:18.5
Today's meeting will make history as an occasion
07:22.7
that significantly pushed forward such initiative.
07:27.0
The three allies will also launch humanitarian assistance
07:29.7
and disaster response exercises in the future.
07:32.7
Despite this show of force from the trilateral summit,
07:35.5
China continues to insist that Manila should seek Beijing's permission
07:39.0
before bringing fresh supplies to soldiers stationed in the Ayungin Shoal.
07:43.6
The Chinese Embassy in Manila for its part says
07:45.8
the U.S. is not a party to the South China Sea issue
07:48.8
and is not in the position to interfere in issues between Manila and Beijing.
07:52.7
It adds the recent tension in the South China Sea
07:55.5
would not have occurred without the U.S. egging on the Philippines.
07:59.4
On the economic front,
08:00.4
Tokyo and Washington have agreed to help Manila build the Luzon Economic Corridor,
08:04.5
a series of development projects that will link Subic, Clark, Manila, and Batangas.
08:09.6
Japan and the U.S. will also allot some 8 million U.S. dollars
08:12.4
to establish an Open Radio Access Network or ORAN system,
08:16.2
which will make communications in the Philippines more secure and reliable.
08:19.8
Efforts will also be made to boost the Philippines'
08:22.3
safe and peaceful use of nuclear energy
08:24.5
and the semiconductor industry
08:26.2
through the training of Filipino personnel
08:28.0
and specialty institutions in Japan and the U.S.
08:33.0
While the first trilateral summit was well-received inside the White House,
08:37.2
some groups trooped outside the U.S.'s seat of power
08:40.0
in protest of Marcus Jr.'s alleged compliance
08:42.6
to sell the Philippines to foreigners.
08:45.0
The trilateral summit has been described as historic
08:48.0
and the first of its kind for the Philippines.
08:50.0
But one question still remains.
08:52.3
On how the operational details of these deals
08:55.1
would actually affect Filipinos on the ground.
08:58.2
Katrina Domingo, ABS-CBN News, Washington, D.C.
09:03.6
President Marcos also met with Google executives in Washington
09:07.6
in line with his administration's digital transformation vision for the Philippines.
09:12.5
Google Global Vice President Karan Batya says
09:15.4
they discussed possible additional infrastructure investments by the tech giant
09:19.9
to further improve internet connectivity.
09:22.3
Some of the specific areas we talked about
09:27.9
included some of the infrastructure investments
09:31.0
that we have already made in the Philippines
09:33.9
including on subsea cables
09:36.3
that are connecting the Philippines to the rest of the world
09:41.1
enabling ongoing growth of the Philippines' internet industry,
09:47.8
YouTube creators.
09:52.3
a lot of good discussion there about some of the things that we have been doing
09:55.9
and things that we would like to consider continuing to do.
10:01.6
The International Monetary Fund says
10:03.6
inflation is easing faster than expected
10:06.2
but it has not been fully defeated.
10:08.2
IMF Chief Kristalina Georgieva says
10:11.2
headline inflation for advanced economies was at 2.3% at the end of 2023
10:16.7
down from 9.5 18 months ago.
10:20.2
The downward trend is expected to continue.
10:22.3
This year which could lead central banks to begin cutting rates
10:25.6
in the second half of the year.
10:27.6
But she urges central banks to calibrate their policy decisions.
10:30.6
She also warns of weak global economic growth
10:34.6
adding rising debt levels pose a major challenge
10:37.6
to public finances in many countries.
10:42.6
We need good policies more than ever.
10:45.6
Making the right policy choices
10:49.6
will define the future
10:51.6
of the world economy.
10:53.6
On this final stretch,
10:55.6
it is doubly important that central banks uphold their independence.
10:59.6
As we know, policy credibility is vital
11:03.6
in the fight to restore price stability.
11:08.6
policymakers must resist calls
11:11.6
for premature interest rate cuts.
11:14.6
Because premature easing
11:17.6
can see new inflation,
11:19.6
surprises that may even
11:21.6
necessitate a further bout of monetary tightening.
11:25.6
And we have to recognize on the other side,
11:28.6
delaying too long
11:30.6
could pour cold water
11:32.6
on economic activity.
11:37.6
Business confidence in the Philippines
11:39.6
less upbeat in the first quarter of this year.
11:42.6
That's according to the Philippine Central Bank's latest business expectations survey report.
11:47.6
The BSP says overall confidence index dropped
11:54.6
in the fourth quarter last year.
11:56.6
However, business sentiment for the next quarter
12:00.6
due to expected higher demand for products and services,
12:03.6
the seasonal summer uptick in business activities
12:06.6
for the tourism and fishery sectors,
12:08.6
and easing inflation.
12:10.6
Businesses also expect the Philippine peso
12:12.6
to appreciate against the US dollar,
12:14.6
but they believe inflation in peso borrowing rates may rise
12:18.6
in the first half of the year.
12:20.6
Meanwhile, Filipino consumers
12:24.6
turned less optimistic on the economy
12:26.6
in the first quarter of the year.
12:28.6
Based on the BSP's Consumer Expectations Survey,
12:31.6
the overall confidence index
12:33.6
remained in the negative,
12:35.6
but improved to negative 10.9%.
12:37.6
Monetary authorities say
12:39.6
the improved outlook is due to expectations
12:41.6
of additional and higher income
12:44.6
and the availability of more jobs,
12:48.6
But consumer outlook for the second quarter
12:50.6
and for the next year
12:53.6
in anticipation mainly of higher inflation.
12:56.6
The BSP survey also found
12:58.6
Filipinos still expect borrowing rates to go up
13:00.6
and for the Philippine peso
13:02.6
to weaken against the US dollar.
13:06.6
Here are some local corporate headlines.
13:08.6
LucioCo's Costco Capital's
13:10.6
full-year earnings in 2023
13:12.6
nearly flat as the aggressive expansion
13:15.6
of its grocery business
13:16.6
tempered overall growth.
13:18.6
The company says its bottom line
13:20.6
only grew 1% last year,
13:22.6
despite an 8.8% climb in revenue.
13:25.6
Its retail businesses,
13:26.6
Pure Gold and SNR,
13:28.6
accounted for 69% of total earnings
13:31.6
while its liquor segment brought in 24%.
13:34.6
As for Andrew Tan's Global Estate Resorts,
13:37.6
it saw a modest 3% growth
13:39.6
in its bottom line last year.
13:41.6
GERI sides strong real estate sales
13:44.6
as well as hotel and leasing operations.
13:46.6
The company currently has nine tourism estates
13:49.6
and integrated lifestyle communities
13:51.6
across the country.
13:53.6
And finally, Ayala Corporation
13:55.6
is fully redeeming 4 billion pesos
13:57.6
worth of Series A bonds due in May.
14:00.6
The bond shall be redeemed in cash
14:02.6
with a redemption price set at 100%
14:05.6
the issue prices plus all accrued
14:07.6
and unpaid interest based on the
14:09.6
coupon rate of around 3% per annum.
14:13.6
And we're taking a quick break.
14:14.6
Up next, the Philippine government files
14:16.6
a petition to take over the operations
14:18.6
of the Manila Cavite Toll Expressway or Cavitex
14:22.6
from a Mani Pangilinan-led firm.
14:35.6
The Philippine government files a petition
14:37.6
to take over the operations of the
14:39.6
Manila Cavite Toll Expressway or Cavitex.
14:42.6
The toll road is run by the Cavite Infrastructure Corporation
14:45.6
which is under the Mani Pangilinan-led firm.
14:48.6
The government insists CIC's authority
14:51.6
to operate and maintain Cavitex
14:53.6
expired back in 2021.
14:56.6
It adds government is missing out
14:58.6
on huge revenue from toll collections.
15:00.6
Under the joint venture agreement
15:02.6
with the government,
15:03.6
the revenue-sharing ratio should shift
15:05.6
from 90-10 to 60-40
15:08.6
once CIC recovers its investments.
15:13.6
I hope we can get this.
15:16.6
It will really benefit the Filipino people.
15:21.6
Imagine kapag 60-40 na ang hatian
15:24.6
in favor of the government.
15:26.6
Yun, binabayaran tol ng ating mga motorista
15:30.6
dyan sa Cavitex ay bababa.
15:34.6
Considerably bababa.
15:39.6
Metro Pacific said the company has already
15:41.6
been meeting with government to discuss
15:43.6
their concerns on the revenue sharing.
15:45.6
It added the court action
15:47.6
will be responded to properly.
15:50.6
The Philippine Tax Bureau maintains
15:53.6
there will be no extension
15:55.6
in the April 15 deadline
15:57.6
for the filing of annual income tax returns.
15:59.6
The agency urges taxpayers
16:01.6
to use the BIR's online services
16:03.6
saying they are available 24 by 7.
16:09.6
Napaka-init po ng panahon eh.
16:11.6
Kaya daman na masinisigurado po natin
16:13.6
na itong pangalaman,
16:15.6
online facilities natin ay gumagana po.
16:17.6
Binabantayan po natin yan
16:19.6
at dun sa mga magdagbigay ng extra na
16:23.6
mga security para naman masigurado na talagang
16:26.6
gagana yan at hindi magda-down ang ating system.
16:29.6
Sa filing, alam naman natin na
16:31.6
magdadagsa po ngayong mga panahon na to
16:33.6
ang gagamit po ng online facilities.
16:36.6
At patuloy din po ang aming information systems group
16:39.6
dito po sa BIR na tutukan at bantayan ang
16:43.6
any form of hacking.
16:48.6
Metro Manila local governments will shift to a 7am to 4pm
16:52.6
work schedule on May 2nd instead of April 15.
16:56.6
San Juan City Mayor and Metro Manila Council President Francis Zamora
17:00.6
cites the need for more time to disseminate the new work hours to the public.
17:04.6
The Metropolitan Manila Development Authority also clarifies
17:08.6
the modified working hours are not rigid.
17:12.6
government agencies can still implement other schedules
17:15.6
which suit their needs.
17:17.6
The shift of working hours is part of government's efforts
17:20.6
to ease traffic congestion in the region during rush hour.
17:26.6
Yung 7 to 4 naman po, general rule po yan.
17:31.6
Pero pwede naman po mag-adjust ang LGU,
17:34.6
ang mga government agencies kung ano yung suited sa kanina.
17:38.6
Meron pong nagsasabi na mas preferred nila yung
17:41.6
four-day work week.
17:44.6
Pero ang nakasentro po ito na 7 o'clock magsisimula na po
17:48.6
yung servisyo publiko.
17:51.6
Napatapos po ng four.
17:53.6
Yung iba naman po ang gagawing four-day work week tapos alternate po
17:59.6
para lang po maikalat yung ating mga empleyado sa mas maraming oras
18:04.6
o araw para po hindi po magkasabay-sabay sa pag-commute.
18:11.6
Meanwhile, the Metro Manila Council says some government workers
18:14.6
will still stay in their offices until 5 in the afternoon
18:18.6
to cater to the public as they adjust to the new schedule.
18:24.6
Hindi naman po makaka-disrupt sa servisyo ng lungsod ang isang oras.
18:28.6
At mag-iiwan naman po tayo ng skeletal force from 4pm to 5pm
18:34.6
for frontline services dahil baka meron pa rin mga darating po
18:38.6
between 4pm to 5pm.
18:41.6
Asahan po nila na meron pa rin skeletal workforce na maiwan po sa City Hall.
18:48.6
Some bad news for motorists.
18:50.6
Oil prices seen rising for a fourth straight time next week.
18:54.6
The Philippine Energy Department expects gas prices to increase by up to 20 centavos.
18:59.6
While diesel and kerosene may climb as much as 1 peso on Tuesday,
19:04.6
the DOE still attributes the higher pump prices to the ongoing conflict in the Middle East.
19:11.6
The Philippine Franchise Association confident it will hit its growth targets this year
19:16.6
despite some challenges of scaling up businesses here and abroad.
19:20.6
Jackie Pascual reports.
19:24.6
The Franchise Asia Philippines Expo opens in Pasay with over 700 participants.
19:29.6
Senator Mark Villar, chairperson of the Committee on Trade, Industry and Entrepreneurship says,
19:34.6
with over 1,800 brands, the Philippines is the biggest franchise market in South America.
19:41.6
And it is expected to grow even further.
19:44.6
2022 alone, this industry has contributed 7.8% of the country's GDP
19:51.6
and has generated roughly 2 million direct and indirect jobs for our countrymen.
19:56.6
He says the food and beverage franchise sub-sector contributed 10.8 billion US dollars to the economy
20:04.6
and the non-food, retail and services contributed 1.34 billion US dollars.
20:10.6
The Philippine Franchise Association sees about 8-10% growth this 2024.
20:16.6
This includes the entry of more foreign players.
20:20.6
We see, you know, many Malaysian, Taiwanese, Korean brands wanting to enter here.
20:24.6
There are also American franchise brands that want to enter.
20:27.6
PFA, however, wants more Filipino companies to expand overseas.
20:31.6
But government needs to step in and help amid the many challenges of scaling up businesses here and abroad.
20:39.6
We want to get more Filipino global brands.
20:41.6
So gusto natin mas marami tayo mga franchise brands that go international.
20:45.6
And for this, we need a lot of government support.
20:47.6
It's very expensive to join a lot of these shows and expos.
20:50.6
The tax incentive programs, what are the concessions being given?
20:54.6
Access to funding, kasi ang taas ng interest rates ngayon for loans if you want to expand your business.
21:00.6
Secondly is the compliances in terms of FDA for food and the cosmetic sector.
21:08.6
The group is happy with the interest of the public in franchising, saying the sector continues to evolve.
21:14.6
Like the growth of coffee shop business, which has now developed into various segments and price points.
21:21.6
But for those just starting, they have this advice.
21:25.6
Start with the small one. Don't get into something big if you're just starting.
21:30.6
The difficulty of starting big, you have a lot of, you know, not only resources but the capital also, requirements.
21:37.6
Big and small companies have various packages that will suit investors' needs.
21:41.6
Like a doughnut company offering a trial program of six months for interested franchisees.
21:47.6
Another fast food company, meanwhile, wants to increase the number of its franchise stores.
21:52.6
Business trial program, hindi mo kailangan maglabas muna ng malaking halaga.
21:56.6
All you need to prepare is at least 100,000 pesos. 50,000 doon is refundable.
22:01.6
So for three to six months, you want more.
22:03.6
In the next five years, we are planning to open additional businesses.
22:06.6
And additional 300 stores. And 60% of which would be franchise stores.
22:12.6
The franchise expo will last until Sunday.
22:14.6
And organizers urge the public to consider franchising as one option to become an entrepreneur.
22:20.6
Jackie Pascual, ABS-CBN News.
22:24.6
That's your Business Outlook. I'm Ron Cruz.
22:26.6
And I'm Salve Duplito.
22:28.6
The world tonight comes your way at the top of the next hour.
22:31.6
Keep it here on ANC.
22:36.6
We'll be right back.
