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Welcome to the Business Outlook. I'm Ron Kroon.

And I'm Savvy Duplito. The Headlines.

U.S. futures slide while European markets are up in afternoon trade.

China's exports and imports tumble, raising worries anew about the health of the world's second biggest economy.

And the Philippines, the U.S. and Japan agree to deepen maritime security cooperation and open a corridor for investments.

Let's check on European markets first. They are seeing gains with basic resources leading the rally.

Investors in the region digesting economic data from the region, including the U.K. economy, managing a 0.1% monthly growth in February.

It is a sign of exiting a shallow recession it entered into in the second half of last year.

Meanwhile, inflation in Germany eased in March to 2.3%, the lowest in almost three years.

Over on Wall Street, futures are pointing to a negative open as traders assess first-quarter earnings reports from big banks.

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.

But Boston Fed President Susan Collins told Reuters,

She's eyeing a couple of interest rate cuts this year.

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.

Both stocks are down 2% in pre-market trading.

Also in focus, shares of BlackRock after the asset management giant boasted better-than-expected first-quarter results.

BlackRock shares are up 3%.

We're also keeping a close watch on shares of JPMorgan Chase, which topped profit expectations as it earned more from interest payments.

Shares of the banking giant, though, plunged 4% in the pre-market.

The CEO, Jamie Dimon, called for caution, citing persistent inflation and geopolitical tensions.

Meanwhile, Asian markets ended the week mostly lower following disappointing trade numbers from China.

Data showed exports in March plunged.

7.5%, while imports unexpectedly shrank 1.9% due to soft overseas demand and tight global monetary policy.

Both figures missing forecasts by big margins, highlighting China's shaky economic recovery.

Worries over the health of the world's biggest economy sent to Hong Kong-Hang Seng tumbling more than 2%.

Investors in the region also digested the policy decisions of the Singapore and South Korea central banks,

which most of the time, they're not sure if they're going to be able to make it to the top.

So, let's keep an eye out for that.

We're also keeping a close watch on shares of JPMorgan Chase, which topped profit expectations as it earned more from interest payments.

We're also keeping a close watch on shares of JPMorgan Chase, which topped profit expectations as it earned more from interest payments.

which both kept interest rates unchanged.

Now, here at home, Philippine shares extended their losing streak to seven sessions,

with the main index logging a weekly loss of 1.3% in the holiday-shortened week.

I think the market has slowly been coming to terms, though.

First, with the declining probabilities of early and big cuts in rates.

Somehow, pH growth targets are still neutral at worst.

For the U.S.

The strong economy continues to surprise, which is actually the biggest contributor of the reduced expectation for lower rates this year.

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.

Although we don't know yet how far this discounting would go, especially lower for the PSEI,

but I think this is the market already telling us that these factors concern us.

So, maybe you wait.

Maybe you wait for this concern to pan out, and maybe we can see the fundamentals more clear in the coming days or weeks.

China remains confident its imports and exports remain in the growth channel in the first half of the year,

despite shrinking trade in March.

The Chinese Customs Bureau cites improving global trade.

Policymakers have been rolling out support measures to bolster a shaky economic recovery.

On Wednesday, China received a negative downgrade on its sovereign credit rating from Fitch,

which cited economic uncertainties.

The Philippines, U.S. and Japan wrap up their historical trilateral summit in Washington

with the allies agreeing to further deepen their maritime and security cooperation

amid China's aggressive incursions in the South China Sea.

Tokyo and Washington also vowed to pour in investments to Manila

to help make the Southeast Asian country more resilient.

Katrina Domingo reports.

The Philippines, Japan and the United States will work to build an open and free Indo-Pacific.

This is what President Joe Biden told his Filipino and Japanese counterparts

during their first trilateral summit,

where Manila, Tokyo and Washington condemned China's illegal and dangerous actions in the South China Sea.

A great deal of history in our world will be written in the Indo-Pacific over the coming years.

As the three allies,

three steadfast,

partners

and three proud democracies

representing a half a billion people.

Today, we commit to writing that story in the future together.

To building an Indo-Pacific that is free,

open,

prosperous

and secure for all.

Among the initial steps to achieve this goal,

the conduct of more combined naval and maritime exercises.

Washington is expected to train some American, Filipino and Japanese personnel

aboard the Indo-Pacific.

The United States will be the first to board a U.S. Coast Guard vessel this year,

while fresh drills will be held around Japan in 2025.

Biden also reiterated a stipulation from the Mutual Defense Treaty

that the U.S. will come to the aid of its allies in the event of an armed attack.

The United States' defense commitments to Japan and to the Philippines are ironclad.

Any attack on Philippine aircraft, vessels or armed forces in the South China Sea

would invoke our Mutual Defense Treaty.

Philippine President Ferdinand Marcos adds

this closer cooperation involving the three countries

will help secure a safer future for the region.

It is a partnership born not out of convenience nor of expediency

but as a natural progression of a deepening relation

and robust cooperation amongst our three countries.

Linked by a profound respect for democracy, good governance and the rule of law.

For Japanese Prime Minister,

Humio Kishida,

it is very natural for the Philippines, Japan and the U.S.

to become allies as the three countries adhere to the rule of law.

In the midst of compound crisis faced by the global community,

multi-layered cooperation between allies and like-minded countries

is essential if we are to maintain and bolster a free and open international order

based on the rule of law.

Today's meeting will make history as an occasion

that significantly pushed forward such initiative.

The three allies will also launch humanitarian assistance

and disaster response exercises in the future.

Despite this show of force from the trilateral summit,

China continues to insist that Manila should seek Beijing's permission

before bringing fresh supplies to soldiers stationed in the Ayungin Shoal.

The Chinese Embassy in Manila for its part says

the U.S. is not a party to the South China Sea issue

and is not in the position to interfere in issues between Manila and Beijing.

It adds the recent tension in the South China Sea

would not have occurred without the U.S. egging on the Philippines.

On the economic front,

Tokyo and Washington have agreed to help Manila build the Luzon Economic Corridor,

a series of development projects that will link Subic, Clark, Manila, and Batangas.

Japan and the U.S. will also allot some 8 million U.S. dollars

to establish an Open Radio Access Network or ORAN system,

which will make communications in the Philippines more secure and reliable.

Efforts will also be made to boost the Philippines'

safe and peaceful use of nuclear energy

and the semiconductor industry

through the training of Filipino personnel

and specialty institutions in Japan and the U.S.

While the first trilateral summit was well-received inside the White House,

some groups trooped outside the U.S.'s seat of power

in protest of Marcus Jr.'s alleged compliance

to sell the Philippines to foreigners.

The trilateral summit has been described as historic

and the first of its kind for the Philippines.

But one question still remains.

On how the operational details of these deals

would actually affect Filipinos on the ground.

Katrina Domingo, ABS-CBN News, Washington, D.C.

President Marcos also met with Google executives in Washington

in line with his administration's digital transformation vision for the Philippines.

Google Global Vice President Karan Batya says

they discussed possible additional infrastructure investments by the tech giant

to further improve internet connectivity.

Some of the specific areas we talked about

included some of the infrastructure investments

that we have already made in the Philippines

including on subsea cables

that are connecting the Philippines to the rest of the world

enabling ongoing growth of the Philippines' internet industry,

YouTube creators.

So a lot of...

a lot of good discussion there about some of the things that we have been doing

and things that we would like to consider continuing to do.

The International Monetary Fund says

inflation is easing faster than expected

but it has not been fully defeated.

IMF Chief Kristalina Georgieva says

headline inflation for advanced economies was at 2.3% at the end of 2023

down from 9.5 18 months ago.

The downward trend is expected to continue.

This year which could lead central banks to begin cutting rates

in the second half of the year.

But she urges central banks to calibrate their policy decisions.

She also warns of weak global economic growth

adding rising debt levels pose a major challenge

to public finances in many countries.

We need good policies more than ever.

Making the right policy choices

will define the future

of the world economy.

On this final stretch,

it is doubly important that central banks uphold their independence.

As we know, policy credibility is vital

in the fight to restore price stability.

Where necessary,

policymakers must resist calls

for premature interest rate cuts.

Because premature easing

can see new inflation,

surprises that may even

necessitate a further bout of monetary tightening.

And we have to recognize on the other side,

delaying too long

could pour cold water

on economic activity.

Business confidence in the Philippines

less upbeat in the first quarter of this year.

That's according to the Philippine Central Bank's latest business expectations survey report.

The BSP says overall confidence index dropped

to 33.1%

from 35.9%

in the fourth quarter last year.

However, business sentiment for the next quarter

is more bullish

due to expected higher demand for products and services,

the seasonal summer uptick in business activities

for the tourism and fishery sectors,

and easing inflation.

Businesses also expect the Philippine peso

to appreciate against the US dollar,

but they believe inflation in peso borrowing rates may rise

in the first half of the year.

Meanwhile, Filipino consumers

turned less optimistic on the economy

in the first quarter of the year.

Based on the BSP's Consumer Expectations Survey,

the overall confidence index

remained in the negative,

but improved to negative 10.9%.

Monetary authorities say

the improved outlook is due to expectations

of additional and higher income

and the availability of more jobs,

among others.

But consumer outlook for the second quarter

and for the next year

turned gloomier

in anticipation mainly of higher inflation.

The BSP survey also found

Filipinos still expect borrowing rates to go up

and for the Philippine peso

to weaken against the US dollar.

Here are some local corporate headlines.

LucioCo's Costco Capital's

full-year earnings in 2023

nearly flat as the aggressive expansion

of its grocery business

tempered overall growth.

The company says its bottom line

only grew 1% last year,

despite an 8.8% climb in revenue.

Its retail businesses,

Pure Gold and SNR,

accounted for 69% of total earnings

while its liquor segment brought in 24%.

As for Andrew Tan's Global Estate Resorts,

it saw a modest 3% growth

in its bottom line last year.

GERI sides strong real estate sales

as well as hotel and leasing operations.

The company currently has nine tourism estates

and integrated lifestyle communities

across the country.

And finally, Ayala Corporation

is fully redeeming 4 billion pesos

worth of Series A bonds due in May.

The bond shall be redeemed in cash

with a redemption price set at 100%

the issue prices plus all accrued

and unpaid interest based on the

coupon rate of around 3% per annum.

And we're taking a quick break.

Up next, the Philippine government files

a petition to take over the operations

of the Manila Cavite Toll Expressway or Cavitex

from a Mani Pangilinan-led firm.

Welcome back.

The Philippine government files a petition

to take over the operations of the

Manila Cavite Toll Expressway or Cavitex.

The toll road is run by the Cavite Infrastructure Corporation

which is under the Mani Pangilinan-led firm.

The government insists CIC's authority

to operate and maintain Cavitex

expired back in 2021.

It adds government is missing out

on huge revenue from toll collections.

Under the joint venture agreement

with the government,

the revenue-sharing ratio should shift

from 90-10 to 60-40

once CIC recovers its investments.

I hope we can get this.

It will really benefit the Filipino people.

Imagine kapag 60-40 na ang hatian

in favor of the government.

Yun, binabayaran tol ng ating mga motorista

dyan sa Cavitex ay bababa.

Considerably bababa.

In a statement,

Metro Pacific said the company has already

been meeting with government to discuss

their concerns on the revenue sharing.

It added the court action

will be responded to properly.

The Philippine Tax Bureau maintains

there will be no extension

in the April 15 deadline

for the filing of annual income tax returns.

The agency urges taxpayers

to use the BIR's online services

saying they are available 24 by 7.

Napaka-init po ng panahon eh.

Kaya daman na masinisigurado po natin

na itong pangalaman,

online facilities natin ay gumagana po.

Binabantayan po natin yan

at dun sa mga magdagbigay ng extra na

mga security para naman masigurado na talagang

gagana yan at hindi magda-down ang ating system.

Sa filing, alam naman natin na

magdadagsa po ngayong mga panahon na to

ang gagamit po ng online facilities.

At patuloy din po ang aming information systems group

dito po sa BIR na tutukan at bantayan ang

any form of hacking.

Metro Manila local governments will shift to a 7am to 4pm

work schedule on May 2nd instead of April 15.

San Juan City Mayor and Metro Manila Council President Francis Zamora

cites the need for more time to disseminate the new work hours to the public.

The Metropolitan Manila Development Authority also clarifies

the modified working hours are not rigid.

The MMDA says,

government agencies can still implement other schedules

which suit their needs.

The shift of working hours is part of government's efforts

to ease traffic congestion in the region during rush hour.

Yung 7 to 4 naman po, general rule po yan.

Pero pwede naman po mag-adjust ang LGU,

ang mga government agencies kung ano yung suited sa kanina.

Meron pong nagsasabi na mas preferred nila yung

four-day work week.

Pero ang nakasentro po ito na 7 o'clock magsisimula na po

yung servisyo publiko.

Napatapos po ng four.

Yung iba naman po ang gagawing four-day work week tapos alternate po

para lang po maikalat yung ating mga empleyado sa mas maraming oras

o araw para po hindi po magkasabay-sabay sa pag-commute.

Meanwhile, the Metro Manila Council says some government workers

will still stay in their offices until 5 in the afternoon

to cater to the public as they adjust to the new schedule.

Hindi naman po makaka-disrupt sa servisyo ng lungsod ang isang oras.

At mag-iiwan naman po tayo ng skeletal force from 4pm to 5pm

for frontline services dahil baka meron pa rin mga darating po

between 4pm to 5pm.

Asahan po nila na meron pa rin skeletal workforce na maiwan po sa City Hall.

Some bad news for motorists.

Oil prices seen rising for a fourth straight time next week.

The Philippine Energy Department expects gas prices to increase by up to 20 centavos.

While diesel and kerosene may climb as much as 1 peso on Tuesday,

the DOE still attributes the higher pump prices to the ongoing conflict in the Middle East.

The Philippine Franchise Association confident it will hit its growth targets this year

despite some challenges of scaling up businesses here and abroad.

Jackie Pascual reports.

The Franchise Asia Philippines Expo opens in Pasay with over 700 participants.

Senator Mark Villar, chairperson of the Committee on Trade, Industry and Entrepreneurship says,

with over 1,800 brands, the Philippines is the biggest franchise market in South America.

And it is expected to grow even further.

2022 alone, this industry has contributed 7.8% of the country's GDP

and has generated roughly 2 million direct and indirect jobs for our countrymen.

He says the food and beverage franchise sub-sector contributed 10.8 billion US dollars to the economy

and the non-food, retail and services contributed 1.34 billion US dollars.

The Philippine Franchise Association sees about 8-10% growth this 2024.

This includes the entry of more foreign players.

We see, you know, many Malaysian, Taiwanese, Korean brands wanting to enter here.

There are also American franchise brands that want to enter.

PFA, however, wants more Filipino companies to expand overseas.

But government needs to step in and help amid the many challenges of scaling up businesses here and abroad.

We want to get more Filipino global brands.

So gusto natin mas marami tayo mga franchise brands that go international.

And for this, we need a lot of government support.

It's very expensive to join a lot of these shows and expos.

The tax incentive programs, what are the concessions being given?

Access to funding, kasi ang taas ng interest rates ngayon for loans if you want to expand your business.

Secondly is the compliances in terms of FDA for food and the cosmetic sector.

The group is happy with the interest of the public in franchising, saying the sector continues to evolve.

Like the growth of coffee shop business, which has now developed into various segments and price points.

But for those just starting, they have this advice.

Start with the small one. Don't get into something big if you're just starting.

The difficulty of starting big, you have a lot of, you know, not only resources but the capital also, requirements.

Big and small companies have various packages that will suit investors' needs.

Like a doughnut company offering a trial program of six months for interested franchisees.

Another fast food company, meanwhile, wants to increase the number of its franchise stores.

Business trial program, hindi mo kailangan maglabas muna ng malaking halaga.

All you need to prepare is at least 100,000 pesos. 50,000 doon is refundable.

So for three to six months, you want more.

In the next five years, we are planning to open additional businesses.

And additional 300 stores. And 60% of which would be franchise stores.

The franchise expo will last until Sunday.

And organizers urge the public to consider franchising as one option to become an entrepreneur.

Jackie Pascual, ABS-CBN News.

That's your Business Outlook. I'm Ron Cruz.

And I'm Salve Duplito.

The world tonight comes your way at the top of the next hour.

Keep it here on ANC.

We'll be right back.