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00:00.0
Hello everyone, I'm Michelle Long, it's name in Manila, 10 a.m. in Tokyo, 9 p.m. in New York.
00:11.9
The headlines, Asia ready to de-risk, markets on tenterhooks as investors watch closely
00:19.4
ratcheting geopolitical tensions in the Middle East after Iran attacked Israel over the weekend
00:25.4
with over 300 drones and missiles, most of which were downed in retaliation for a strike
00:31.8
on its embassy compound in Damascus. So far, gold and the mighty dollar jumping,
00:37.9
but overall market reaction has been muted. Here at home, the PSE Index kicking off from 66.59.
00:47.7
Edgar Saavedra seems to be in fundraising mode weeks after his Citicor Energy REIT
00:52.6
got a fresh 5 billion peso capital injection.
00:55.4
From the SM Group, his construction company Megawide is now looking to raise up to 5 billion
01:01.7
pesos in the bond market. The Philippine Agriculture Department lifts the temporary ban on the
01:10.0
importation of domestic and wild birds from Belgium and France. And later, our monthly chat
01:18.1
with the British Chamber of Commerce's Chris Nelson, and today he will be joined by James
01:22.7
Thackeray, Director of Trade and Investment at the British Chamber of Commerce.
01:25.4
At the British Embassy in Manila.
01:29.6
We are getting more details following the G7 leaders summit called to tackle escalating tensions in the
01:35.9
Middle East following Iran's massive aerial strike on Israel over the weekend. Bloomberg reports the
01:42.0
leaders have agreed to use all channels of influence on Israel not to launch a retaliatory
01:47.9
attack on Iran. They also expressed some cautious optimism that Islamic State won't launch another
01:55.4
At the UN Security Council, the United States also warning Iran it will be held responsible if it takes further action against Israel or the US. The UK representative echoing the US in condemning the attack.
02:10.7
In the coming days, and in consultation with other member states, the United States will explore additional measures to hold Iran accountable here at the United Nations.
02:25.4
More immediately, the Security Council must unequivocally condemn Iran's aggressive actions and call for Iran and its partners and proxies to cease their attacks. If Iran or its proxies take actions against the United States or further action against Israel, Iran will be held responsible.
02:43.7
As we have demonstrated, the United Kingdom will continue to stand up for Israel's security and for that of all our regions.
02:55.4
We welcome the actions of our allies to deter the Iranian threat.
03:07.7
Turkish, Jordanian and Iraqi officials meanwhile say Iran gave wide notice before Saturday's attack, allowing mass casualties and rampant escalation to be averted.
03:18.2
The US however denies receiving an extensive warning, saying Tehran only sent a message after the attack.
03:25.4
In the meantime, Israel remains on high alert. Most of the hundreds of drones and missiles launched by Iran were downed even before reaching Israel.
03:34.4
The overnight barrage was its first ever direct assault on Israeli territory and came in retaliation for a deadly strike on Tehran's consulate in the Syrian capital.
03:44.1
It remains unclear how Israel would respond to this major escalation in the long-running covert war between regional foes.
03:53.6
Last night was a proof.
03:55.4
Iran launched over 350 threats, ballistic missiles, cruise missiles, rockets and suicide drones towards Israel and also other countries in the region could have got that threat on the way.
04:17.4
Iran doesn't just pose a threat to Israel, Iran poses a threat to the entire Middle East.
04:23.4
Iran, from the beginning of the war, has been a threat to the entire Middle East.
04:25.4
Iran, from the beginning of the war, wants only one thing, to escalate the region.
04:30.0
Until now, she worked through her proxies, but now she revealed, trying to escalate the region herself.
04:41.9
Oil, of course, will be of close focus and one key question for the region and for oil will be the safety of vessels around the Strait of Hormuz.
04:50.7
While Iran may struggle to block the key choke point, it can certainly step up attacks,
04:55.4
to existing disruption in the Red Sea and to oil's risk premium.
04:59.9
The Philippine Energy Department explains around 21 million barrels per day pass through that Strait.
05:05.6
And if this is shut, risks delaying supplies, forcing vessels to find another route, most likely longer and more expensive.
05:14.0
Meanwhile, Clean Fuels Bongsuntay expects petroleum products to see another price hike next week.
05:19.4
That would be a fifth week of upward adjustments already following this week's big pop.
05:25.4
He supplies the 40% of global crude oil exports.
05:29.1
As it is, Brent crude is already up almost 20% this year and last traded around $90 a barrel.
05:38.1
Global markets on de-risking mode.
05:40.7
Investors treading cautiously in early trade as markets grapple with escalating tensions after Iran's unprecedented attack on Israel over the weekend.
05:49.8
Look at the board.
05:50.7
We are seeing early losses across the region from the Nikkei 225.
05:55.4
1.6% down to the KOSPI 1.1 to the ASX 200 down by half of 1%.
06:02.8
Even futures for Chinese stocks and Hong Kong's Hang Seng Index are pointing to lower opens already when trade resumes later on within the hour.
06:11.6
Looking at the U.S. stock futures though, they are edging higher.
06:15.6
It could be a rebound as well after the S&P last week suffered its worst session since January amid a flight to safety.
06:23.1
The U.S. dollar steady against.
06:25.4
Major developed market peers oil after that initial spike already normalizing this morning on expectations and hopes that the conflict will remain contained.
06:36.4
Global benchmark Brent crude initially rose just 0.7% to 91.05 a barrel before trading flat.
06:44.4
While gold jumped at the open rising as much as 1.2% to near a record high as the conflict in the Middle East entered a dangerous new phase before pairing around half of that gain.
06:55.4
Now, the precious metal has already surged by almost 20% since mid-February in a rally that's taken many investors by surprise.
07:03.9
Now, aside from gold, silver, which trades at a fraction of the price of gold, also gaining this time by as much as 1.7% as haven demand ticks higher.
07:18.2
Before all of that weekend attack, it was also the perfect storm for stocks last Friday.
07:23.6
From geopolitical tensions to lackluster...
07:25.4
...earnings, U.S. equities suffered their worst day since January, sending investors fleeing to safe havens like bonds and the dollar, which, by the way, notched its best week since September 2022.
07:37.3
Gold topping the $2,400 an ounce mark before erasing gains.
07:43.0
Wall Street got hit by a flare-up in geopolitical tensions in the Middle East following reports.
07:48.3
At that time, there were still reports that Israel was bracing for an attack by Israel and government targets.
07:54.2
It eventually materialized.
07:55.9
Brent oil settling above $90 a barrel last Friday.
07:59.4
Adding to the gloom, it was a pretty bad day for big banks with first-quarter results from giants like J.P. Morgan, Wells Fargo, and Citi failing to impress.
08:10.3
Capping a week marked by market-moving inflation data that fueled concerns the Federal Reserve will keep rates higher for longer.
08:17.7
Taking a look at the board, all three major indices fell more than 1% each.
08:22.7
More than 1.2%, in fact.
08:24.1
And registered losses on the week.
08:26.5
The S&P 500 saw banks and chipmakers lead the losses, posting its biggest weekly drop for the year so far.
08:33.3
Wall Street's favorite fear gauge, the VIX, also spiking to levels, last seen in October.
08:41.9
This has been a very tough week.
08:46.4
I mean, up until just Wednesday, markets we felt were in a belief stage.
08:51.9
Things were going good.
08:52.8
People were letting their.
08:55.8
And it's obvious why, through March, the S&P was up 1%, and that happened five consecutive months in a row.
09:02.7
That only happened 12 times in history.
09:05.2
And going forward from that, 12 months going forward, a median up of 9.7.
09:10.4
So, a lot of good feelings, in contrast, by the way, to the beginning of 23, when we had the 2022 hangover.
09:18.8
But then Wednesday rolled around, and we saw a big drop in the market.
09:23.5
Came out with a 0.4% rise.
09:26.0
And that, coupled with a bad labor report of 303,000 and unemployment ticking down, you put that all together, and you get scared market.
09:39.5
Now, back here at home, here's a look at the local corporate headlines we're watching this morning.
09:43.4
Fresh off the disclosures page, first-gen corporation successfully concludes its international tender for an LNG cargo.
09:51.3
It awarded a contract to Senuk Gas and Power.
09:53.5
For trading and marketing for Senuk.
09:55.6
Now, Senuk will supply one LNG cargo of approximately 130,000 cubic meters to be delivered this May.
10:03.6
Now, that LNG cargo to be provided by Senuk will be delivered by an LNG carrier, which will be unloaded into the storage tanks of the BW Batangas FSRU that's currently birthed at the first-gen clean energy complex in Batangas City.
10:18.9
The LNG will be utilized by FGEN's existing gas-fired power plants, also located within.
10:23.5
The first-gen has a portfolio of four existing gas-fired power plants with a combined capacity of 2,017 megawatts that have supplied, that have been supplied for many years with gas from the Malampaya field and indigenous offshore gas field that's seeing its supply get depleted.
10:42.7
Meantime, in the earning stream, homegrown seafood company Alliance Select Foods International narrowed its consolidated net loss last year to $2.6 million.
10:53.5
A $3.5 million loss back in 2022.
10:57.1
This, as consolidated revenues grew 63% to $56.5 million in 2023, driven by a jump in export volumes of tuna products and better selling prices across all product segments.
11:10.0
This, in turn, helped cushion some of the impact from unfavorable interest rate environment, higher finance costs, and sticky inflation.
11:19.7
Meanwhile, following findings from the Department of Energy.
11:22.8
Environment and Natural Resources Region 6 rather of Petro Wind Energy's compliance to its various environmental permits for its 13.2 megawatt phase two project, the Sangguniang Bayan of Malay re-endorsed that project last February 22.
11:37.3
Now, for context, Petro Wind Energy had started site development in March last year after securing a $1.8 billion loan from DBP to partially fund the renewable energy project.
11:49.5
The first three wind turbine generators located on the North Shore.
11:52.8
The first three wind turbines located on the North Shore were completed recently and started its testing and commissioning in April 4, supplying, as we reported earlier, the much-needed electricity to a power-starved Panay Island.
12:03.3
But work on the three remaining wind turbines on the Malay side had to be put on hold after the Malay SB or Sangguniang Bayan revoked the project endorsement it issued back in 2021.
12:15.2
They revoked that last August 2023 amid some environmental concerns.
12:20.8
And another news.
12:22.8
Mega White's board has approved an up to 5 billion peso denominated fixed-rate bond offering an up to three series.
12:29.8
That's a three-, five-, and seven-year series.
12:33.7
We'll bring you more details on that as soon as they come in.
12:38.8
Shifting gears now, transport groups Piston and Manibela are staging another two-day transport strike in protest of the government's PUV modernization program.
12:47.3
The groups are demanding that transport officials reconsider their decision.
12:52.8
It is expected to stick to the April 30 consolidation deadline.
12:56.1
At least 20,000 drivers and operators are expected to join the strike.
13:01.0
But authorities assure commuters the government is ready.
13:03.6
I think the government is ready.
13:03.7
Nagpasabit na kami na inventory ng assets ng lahat ng government agencies at mga NGOs.
13:12.2
So far, I think we have sufficient number ng pang-augment ng buses, vans.
13:22.9
Kung may mga namumonitor na nanghaharas or namumwersa ng mga drivers para sumama sa tigil pasada,
13:31.3
kagad naman yan ibabato on the ground.
13:35.3
Naka-preposition din naman yung ating mga kapolisan.
13:41.5
The Office of Transportation Cooperatives claims 78% of operators in the country have already consolidated,
13:49.0
but Manibela doubts the accuracy of that number.
13:55.2
Regarding sa percentage kasi, after the report of LGFRB sa ating pangunod,
14:01.3
for us to reach 60 to 65% is already a good number.
14:08.1
For us to reach 78%, definitely it's a very good number for us to go ahead with this program.
14:16.5
Ang sabi nila dati, 3% na lang ang hindi na nga kapag-consolidate.
14:21.8
Alam nyo, pabago-bago. Pagka wala ka talagang tamang datos, nagsisinungaling ka.
14:30.5
Still in traffic.
14:31.3
For transport, the ban on e-bike, e-trikes and similar vehicles on major roads in Metro Manila begins today, April 15.
14:39.5
The Metro Manila Development Authority reminds owners of such vehicles that those found violating the regulation
14:44.3
will face a P2,500 fine.
14:48.3
Vehicles without licenses or registration documents, meanwhile, will be impounded.
14:53.5
The MMDA, however, says those caught on Monday and Tuesday will only be issued a warning
14:59.1
with strict implementation set to begin.
15:01.3
This Wednesday, April 17.
15:07.4
From transport to agri, the Philippine Agriculture Department lifts the temporary ban
15:12.5
on the importation of domestic and wild birds from Belgium and France.
15:17.3
The move covers products like poultry meat, day-old chicks and eggs.
15:22.2
The DA issued the order following reports there have been no additional bird flu outbreaks in Belgium since February 21
15:28.4
and in France since February 24 this year.
15:31.9
Infections of the highly pathogenic avian influenza H5N1 strain were reported in the two countries
15:38.7
which share a border late last year.
15:40.9
This follows similar actions by the DA on American poultry.
15:47.1
Still on agriculture, the department distributed more than P75 million worth of financial and farm equipment
15:54.0
to Bicolano farmers in Pili, Camarines Sur.
15:57.6
Included in the package is a P10.64 million.
16:01.3
The DA says it will provide other interventions like fertilizer discount vouchers and technical assistance.
16:31.3
The DA says it will provide other interventions like fertilizer discount vouchers and technical assistance.
16:34.6
The DA says it will provide other interventions like fertilizer discount vouchers and technical assistance.
16:35.0
Now here's a look at the other stories we're tracking today.
16:38.2
We are monitoring President Marcos' activities for the day happening within the hour.
16:42.8
He is attending the launch of the energy sector's emergency operations center and mobile energy system.
16:49.1
While at two this afternoon, Marcos will grace journalists group FOLCAP's presidential forum.
16:54.2
And at around three, he's attending another tourism event, this time in Pasi City.
16:59.2
We're also keeping tabs on the transport strike.
17:01.3
It's happening today as well as the start of the implementation of the ban on e-bikes and e-trikes on national roads.
17:07.3
And don't forget, April 15th, the deadline by the BIR for the filing of your annual income tax returns.
17:15.1
We'll also try to bring you updates on that all throughout the day.
17:19.6
Up next, we're about eight minutes before the opening bell.
17:23.0
We'll bring you the opening numbers at the Philippine Stock Exchange with AIA Investment Management's Angel Basis.
17:28.9
Don't go away. Market Edge. We'll be right back.
17:31.3
We'll be right back.
18:01.3
Market Edge, the headlines.
18:02.8
The U.S. says it will not take part in any Israeli retaliatory action against Iran amid fears of a broader regional conflict.
18:13.6
Manila working to secure the release of Filipino crewmen on board a cargo ship seized by Iranian forces.
18:22.7
And President Marcos confident the recently concluded trilateral summit with the U.S. and Japan will improve security in the region.
18:31.3
Philippine shares now on a seven-day slide, failing to reclaim the 6,700 support on Friday following a second month of inflation uptick.
18:43.1
That's making the rate environment truly, truly very uncertain.
18:47.3
The index kicking off today at 6,659.
18:50.3
We're about three minutes away from the opening bell.
18:53.0
Joining us this morning to get us set up for trade this week, a full trading week, is Angel Basis, CEO of AIA Investment Management.
19:01.3
Angel, happy Monday. Good morning.
19:03.9
Happy Monday with me.
19:06.3
All right. So, Angel, you think about what happened over the weekend.
19:12.4
It was sort of a black swan.
19:15.2
Do you think markets are going to de-risk at this point?
19:18.7
You know, start off.
19:21.2
Yeah, you really expect a knee-jerk reaction.
19:24.8
First, there was really negative leads on Wall Street.
19:28.2
And, of course, because this was unprecedented.
19:30.2
The unexpected, totally, an attack on Israel.
19:36.4
You kind of expect really a knee-jerk reaction from the market.
19:41.1
And this knee-jerk reaction, it's knee-jerk, so it's going to be, you know, just a one-time thing.
19:47.9
And then you think markets are ready to go back to the usual course of business.
19:51.6
I mean, how deep will the knee-jerk reaction be?
19:54.1
I expect the market to go as low as between 6.6 to 6.5.
19:59.5
But after that, it's still going to be a period of consolidation because the lingering questions, right, data dependency on whether, when interest rates will actually start to go down.
20:12.8
And as you know, it has been pushed, expectation has been pushed back.
20:16.9
And on the other end of the spectrum, people are already talking about, you know, zero rate cuts for the year.
20:23.6
That's actually the extreme thing.
20:25.1
Now, the other thing to note is really, will this...
20:29.5
Oh, wow. All right.
20:43.9
And on top of that, you know, you think about the last couple of weeks, the fallout from the inflation that we got, flashing red signals of delays in central bank easing, and the mixed bag of earnings.
20:56.8
Has your general view of the market changed significantly?
20:59.5
Are you seeing more reasons to be cautious now?
21:02.9
Or was this all expected?
21:05.7
We were kind of expecting a pause because if you remember the last time I was here, the market was priced for perfection.
21:16.1
Now, the problem is the narrative is changing.
21:19.6
So essentially, the growth still seems strong, right?
21:24.2
But if interest rates do stay high for long, you need to see...
21:29.5
To what extent it's actually going to impact the positive sentiment that we were...
21:36.2
Or the earnings picture that we were expecting at the beginning of the year.
21:39.8
And if you look actually at the general macro factors that are happening now, you actually have your dollar on a rampage.
21:51.1
Oil up significantly year to date.
21:56.9
And not only that, you see other commodities.
22:01.7
So all of those are actually going to hit the Philippines more than some countries, mainly because of our lack of self-sufficiency on agricultural and even energy.
22:14.8
You actually hit it in the nail.
22:17.5
You talk about oil, very hot.
22:20.1
The dollar is up.
22:21.7
Gold is now at records.
22:24.2
Tactically, when you see where these assets are going, what kind of allocation makes sense?
22:29.5
For Q2, you think, what is your advice to investors who are trying to decide where to put their eggs?
22:35.6
Yeah, definitely the weakness will be an opportunity to pick up.
22:40.4
It's just that, you know, you don't want to catch a falling knife.
22:43.5
You want to see things stabilize a bit before you go in, especially because there's a wild change in the narrative since the beginning of the year.
22:53.3
So we're actually, of course, right now, with rates high, money market looks good.
22:58.7
But we're actually...
22:59.5
We're taking advantage of this spike in interest rates to pick up bonds.
23:03.9
And later on, we're still bullish on equities overall.
23:08.7
But this correction could be a little bit deeper than what we've seen in the last few months.
23:17.0
How bullish are you on equities?
23:20.2
Because we have been up, what, 7-8% in the first three months of the year.
23:24.8
Is it time to watch our back or you're seeing more upside?
23:29.5
We're looking at the equities towards the year-end hitting above 7,000.
23:36.1
So if it goes down some more, right, if you hit around 6-4, 6-5, that's kind of a good risk return already.
23:46.6
But then again, it really depends on what the overall environment is going to look like.
23:52.4
If the geopolitical tension escalates, and remember, it's not just Iran and Israel.
23:59.5
You still have China, you still have Ukraine, and if all those come, yeah.
24:05.8
So you have China, Taiwan, China, Philippines.
24:09.2
So all of these things actually are things to watch out for.
24:13.6
And these are event risks, right?
24:15.8
So you can only do so much insofar as analysis is concerned.
24:21.8
It's a very binary thing.
24:25.2
Did I catch that right?
24:26.7
Do you think the index is going to end the year at 7,000?
24:30.0
We're almost there.
24:31.6
We're almost there, yes.
24:33.1
It's the path, actually.
24:35.6
It's going to go up.
24:36.6
We believe it's going to go above 7,000.
24:39.0
At least that was the view before all of these geopolitical tensions flared up.
24:45.1
So yeah, if you're looking at 7,000, maybe 7-4, then any corrections at this point could be an opportunity to pick up.
24:53.4
But the question is, yeah, I think it will be quiet between now and next.
25:01.4
Talk about sell in May and go away.
25:06.1
But in the meantime, when you look at what's on tap this week, I think we have a calendar for the data in the pipeline.
25:13.4
Philippine Consumer Confidence, we're getting that later in the day.
25:17.4
We got business confidence numbers last week.
25:20.2
Today, it's going to be consumer confidence numbers.
25:23.2
Our remittances are out this Wednesday.
25:25.0
Are you expecting to get any support?
25:29.5
Sentiment-wise from these numbers?
25:32.5
Yeah, these are lagging indicators.
25:34.7
And the upset actually happened last week when there was a pivot in the narrative on interest rates.
25:42.1
And of course, the escalation of the tensions in the Middle East.
25:47.1
So I don't think people are going to be particularly keen on the economic data going forward.
25:57.4
In the next few days, I think they will be worried.
25:59.5
The geopolitical arena.
26:03.3
Angel just wanted to bring in, we're five minutes into trade for the day.
26:07.1
The PSEI not spared from the bloodbath because of geopolitical tensions.
26:11.8
The index is down six-tenths of one percent.
26:14.0
Thirty-nine points.
26:16.5
The broader all shares is down by just as much.
26:19.5
Everybody in the red, deeply in the red, except for two.
26:22.5
Services and mining and oil, which is hanging on to positive territory.
26:26.0
Services up by just less than a tenth of one percent.
26:29.1
Mining and oil, except index up by even less than that.
26:33.8
We're going into the first quarter earnings season.
26:36.6
We know they say the 2023, it's a rearview mirror.
26:40.1
But at least the Q1 earnings season could give us a clearer picture of what the rest of the year might look like.
26:45.8
Banks tend to fire the opening salvo.
26:48.6
What are you expecting to see in the Philippine context when you think about earnings?
26:53.3
I believe earnings will look good.
26:56.4
They benefit actually from...
26:59.1
Higher interest rates because their margins improve.
27:02.0
And if you look at actually the loans growth, it has still been good.
27:06.1
So that actually ogres well for bank earnings.
27:10.3
But for the rest of the listed companies though?
27:14.6
I think it's going to be a mixed bag.
27:19.6
Mainly because, remember at the start of the year, a lot of expectations were upgraded.
27:27.2
Coming from the pivot.
27:29.2
That happened in October.
27:31.2
So if it was the opposite in 2023.
27:34.1
2023, the expectations were downgraded.
27:37.3
So you had a lot of beats happening, right?
27:40.5
During the latter part of the year.
27:44.0
So I think it's the opposite now.
27:47.0
Commodity prices have been going up.
27:52.1
The earnings, I think, will continue to be a mixed bag.
27:55.1
Save for certain sectors.
27:56.9
You mentioned telco.
27:59.1
You mentioned telco services.
28:01.1
And that's really largely because of the structural advantages that the telco has.
28:07.1
Alright, alright.
28:09.1
We're going to be keeping our fingers crossed.
28:11.1
I think we are now ready for your blind item.
28:14.1
Talk to us about this indicator.
28:16.1
It's not a stock.
28:17.1
It's an indicator that you watch very closely.
28:19.1
We mentioned it several times during the show already.
28:22.1
But let's see whether our viewers can guess what this is.
28:24.1
So what do you have for us?
28:25.1
And why does this indicator matter?
28:28.1
So this indicator actually is a very good predictor of volatility going forward.
28:36.1
So I presented two views here.
28:38.1
Short term, the one on the left panel.
28:40.1
And the longer term, this weekly on the right panel.
28:44.1
So if you look at the red formation as well as the yellow formation on the left panel,
28:51.1
it's actually pointing to some upward movement in this indicator.
28:57.1
And when this indicator goes up, you actually expect a lot of volatility in the markets.
29:04.1
Now, that actually is expected in the short term.
29:07.1
What I'm more worried about is the panel on the right because this actually points to a longer term picture of the same indicator.
29:17.1
And it's actually pointing to much higher levels than what we are expecting shortly.
29:23.1
And if you look at the lower chart on the left,
29:25.1
or chart on the right panel,
29:29.1
that little orange circle there,
29:31.1
that orange circle is a major pivot point.
29:35.1
So if that continues to go up and if it goes above that horizontal axis,
29:39.1
that really means you actually need to watch out.
29:44.1
We're just going to have to guess which indicator this is.
29:48.1
Angel, always a pleasure to speak with you.
29:49.1
Thank you so much for the time.
29:52.1
So happy to be here, Mimi.
29:54.1
Have a great and profitable weekend.
29:58.1
Now, before we zip through the top headlines from major business papers,
30:01.1
we have this just in.
30:03.1
The Securities and Exchange Commission has slapped fines totaling 560 million pesos on ABRA mining officers, transfer agents, and stockholders.
30:13.1
Let me just go over the actual press release from the SEC.
30:18.1
They've imposed those fines for the unauthorized and fraudulent trading of unissued
30:24.1
and unlisted shares.
30:26.1
That's from the year 2015 to 2019.
30:30.1
The decision was promulgated on April 8 this year
30:34.1
when the SEC Markets and Securities Regulation Department found ABRA Mining guilty
30:39.1
of violating Section 26 of RA 8799 and Section 61 of RA 11232.
30:48.1
Also found liable, they elicited down ABRA Mining President James Belloy,
30:53.1
Corporate Secretary Amelia Belloy, some directors as well.
30:57.1
What is Section 26 of the SRC provides that it shall be unlawful for any person to directly or indirectly
31:04.1
to employ any device, scheme, or artifice to defraud or engage in any act, transaction, practice, or course of business
31:10.1
which would operate as a fraud or deceit upon any person.
31:14.1
In a separate decision, they also found that ABRA Mining's transfer agent, that's Asian Transfer and Registry Corporation,
31:22.1
as well as its president and several other officials violated Sections 26 of 52.1 of the SRC
31:29.1
and Section, it's a whole list really.
31:32.1
There was another decision, several, it's a string of decisions, another decision,
31:36.1
the MSRD also held several stockholders of ABRA Mining, namely Ferdinand Collado, Leila Collado,
31:42.1
and several others liable for violating as well Section 26.
31:46.1
Again, the case stems from discrepancies in ABRA Mining's shares,
31:51.1
lodged with the Philippine Depository and Trust Corporation,
31:55.1
which were in excess of the number of listed, registered, issued, and subscribed shares submitted
32:01.1
in the company's filings with the SEC.
32:04.1
The total number of AR shares lodged with the BDTC totaled 258.9 billion,
32:12.1
whereas the total number of the company's listed shares at the stock exchange was only 72.9 billion shares.
32:21.1
according to the SEC,
32:22.1
the total shares indicated in ABRA Mining's latest approved registration statement stood at 95 billion,
32:29.1
while the issued and subscribed shares indicated in its corporate documents only totaled 99 billion and 199.3 billion respectively.
32:38.1
The illegal issuances of AR shares totaling 169 billion shares covering 474 stock certificates
32:46.1
were found to have been made from 2015 to 2019.
32:50.1
These illegally issued shares were lodged and traded on the Philippine Stock Exchange in numerous transactions.
32:58.1
We'll bring you more details on this story.
33:00.1
Again, the SEC has slapped fines totaling 560 million on ABRA Mining officers, transfer agents, and stockholders.
33:09.1
More details all throughout the day.
33:11.1
Meantime, let's now zip through the top headlines from major business papers.
33:15.1
Let's begin with Business World,
33:17.1
the national government's gross borrowings,
33:19.1
up by 22% to 420 billion pesos in February as domestic debt surged.
33:25.1
The Bureau of Treasury says month-on-month,
33:27.1
gross borrowings also more than doubled.
33:31.1
Mayor of the Banco Central says competition from foreign traders and more goods in the market
33:35.1
were among the reasons that made businesses less optimistic in the first quarter of this year.
33:40.1
The latest business expectations survey shows business sentiment in the Philippines turned less upbeat in Q1
33:46.1
as the overall confidence index declined.
33:48.1
The index declined to 33.1% from 35.9% in the fourth quarter of last year.
33:55.1
And from the Philippine Daily Inquirer,
33:57.1
at least 20 more homegrown brands are planning to debut in the international market,
34:01.1
a development which will nearly double the current number of Filipino brands already operating overseas.
34:07.1
At least that's according to the Philippine Franchise Association,
34:10.1
which by the way, just concluded its Franchise Expo over the weekend.
34:18.1
President Fernando Marcos, Jr.,
34:20.1
are confident the recently concluded trilateral summit between Manila, Washington and Tokyo
34:25.1
will improve the situation in the region.
34:27.1
Beijing's maritime aggression was front and center during the historic event
34:31.1
with the three nations expressing solid commitment to ensure freedom of navigation in the West Philippine Sea.
34:40.1
We explored ways of enhancing our cooperation in a number of areas of mutual concern,
34:45.1
including in enhancing economic relations,
34:48.1
resilience and security,
34:50.1
promoting inclusive growth and development,
34:52.1
addressing climate change
34:54.1
and maritime cooperation.
34:56.1
I emphasize that trilateral cooperation between the U.S., Japan and the Philippines
35:01.1
is a natural progression of the strong relations between close allies.
35:08.1
Aside from defense, the Philippines also bagged investment pledges from the summit.
35:12.1
America and Japan committed billions of pesos worth of investments
35:15.1
covering the sectors of communication,
35:17.1
semiconductor and nuclear energy.
35:20.1
The U.S. International Development Finance Corporation also pouring in
35:24.1
$20 million for housing projects in the country.
35:30.1
I'm confident that our collaborative efforts will pave the way
35:33.1
for a brighter, more prosperous future for the Indo-Pacific region.
35:38.1
Together, we can harness the power of infrastructure and innovation
35:42.1
to drive sustainable development and economic growth.
35:49.1
Joining us now for this month's Outside Looking in Perspective
35:52.1
on regional and Philippine trade issues
35:54.1
is British Chamber of Commerce's Chris Nelson,
35:56.1
who is joined today by a special guest,
35:59.1
the British Embassy's Director of Trade and Investment, James Thackeray.
36:02.1
Gentlemen, welcome to Market Edge. Good morning.
36:06.1
Good morning, Mimi. Yes, very good to be here with James.
36:11.1
Good, good. Hi, James. Good morning. Welcome to Market Edge.
36:14.1
Good morning. Thank you for having me.
36:17.1
All right. So I want to start with Chris.
36:19.1
You're probably monitoring this big news as well over the weekend,
36:23.1
the Israel-Iran war.
36:25.1
As Israel debates a response to the attacks,
36:28.1
its war cabinet is saying it would respond in the manner
36:31.1
and at the time of its choosing.
36:33.1
Do you think the U.S. and Western allies, including you guys, the U.K.,
36:37.1
can stop this slide into an all-out war?
36:39.1
We have just heard some developments from the G7 meeting of the richest countries,
36:43.1
being called and, you know, calling on restraint.
36:46.1
So what are your thoughts on this, Chris?
36:49.1
Well, everyone's asking for restraint.
36:52.1
Tensions have been rising, which obviously has an impact.
36:55.1
We've seen it in the discussion in the earlier part of your program.
36:59.1
Oil prices have been going up.
37:01.1
This is obviously having an impact on the stock markets.
37:04.1
And, of course, going forward, what people are looking at is what's the impact
37:09.1
on interest rates in various markets.
37:12.1
And, of course, what people are looking at is what's the impact
37:15.1
It's very hard to say.
37:16.1
Obviously, we all implore and appreciate restraint.
37:20.1
Israel's saying it will study how it's gonna do it.
37:23.1
Iran, as you've noticed, said that they consider the response to be over.
37:29.1
We'll let it see.
37:30.1
In context of how we can assist,
37:33.1
there's very little that anybody can do on those macro developments
37:36.1
apart from Pray and Hope.
37:38.1
I would just reiterate that inflation is a key concern
37:42.1
countries which we've discussed on the previous
37:44.4
program and in that I would
37:46.3
say that the UK is working hard
37:48.2
with the Philippines on supply chain
37:50.1
and even in particular as we've discussed
37:52.2
before on the supply of meat and
37:54.2
particularly pork, in that
37:56.0
context we would once again say we would
37:58.3
like to see the complete implementation
38:00.4
of the Executive Order 50
38:03.9
alteration or approach
38:06.5
on the minimum access tariff
38:08.2
which could actually reduce supply
38:10.3
therefore potentially have an impact
38:12.3
on inflation. So in summary
38:14.4
we all hope for restraint
38:16.0
and what we can try to do is how
38:18.3
we can assist say the Philippines with supply
38:20.5
opportunities. Hopefully
38:22.4
the tensions in the Middle East
38:24.4
don't impact supply chains
38:26.0
that you mentioned Chris but I'm
38:28.3
very curious aside from the local issues that we have
38:30.4
here which is inflation
38:32.1
plus how the UK has been supplying
38:34.4
the Philippines with meat
38:38.0
the various British chambers
38:40.2
of commerce around the world because
38:42.1
you have one in almost all
38:44.0
countries. Have you guys gathered and
38:45.9
started having a discussion
38:47.4
on what happened over the weekend?
38:51.0
No, I mean I think
38:52.2
what we do have coming up actually
38:54.1
is the annual meeting
38:56.0
for British chambers of commerce.
38:58.2
We would express concerns
39:00.1
what we will try to do is
39:02.2
what can we do as a group
39:03.9
working also of course with the UK government.
39:06.9
I've just mentioned we'll
39:10.2
meeting of the British chambers
39:11.9
that's actually scheduled in June
39:13.8
in London at the same time there's a
39:15.8
possibility there could be some
39:17.7
engagements and I think what
39:19.9
the British chambers will be trying to do is how
39:21.8
we can continue to reinforce
39:23.5
trade. How can trade continue?
39:26.3
Obviously there's been tensions in the
39:27.9
Middle East leading to shipping
39:31.5
via the Horn of Africa
39:33.8
rather than through the Middle East
39:36.0
area through the Suez
39:37.9
Canal. So I think our
39:40.2
approach has got to be is how
39:41.8
we can work again with our government
39:43.7
how we can assist
39:45.9
in continuing to seeing trade grow
39:47.7
because that's good for not only
39:50.0
obviously UK Philippines but
39:52.2
world growth trade in general.
39:54.4
All right and speaking of trade
39:56.3
James, what do you think
39:58.1
does this new geopolitical
40:00.4
narrative imply for the global economy
40:03.2
and the markets? I mean the UK economy
40:04.9
just started growing slightly
40:07.4
0.1% in Feb increasing hopes.
40:10.0
You guys might be on your way out of
40:11.7
recession. I know that the strength is
40:13.8
coming from production and manufacturing
40:15.3
especially in the auto industry but does this
40:19.1
your hopes and what you expect to see for
40:21.7
the rest of the year in terms
40:29.6
in conflict there
40:31.5
are impacts on all
40:33.8
of us in one way or another and
40:35.7
one of those ways is through
40:37.6
economics and the ways that we are all
40:40.0
linked through trade and that poses
40:42.7
a challenge for everyone particularly
40:44.2
through cost of living.
40:47.1
At the British Embassy here in the Philippines
40:49.1
we believe that trade is a really important
40:52.9
engine for prosperity and peace and we're
40:57.4
hoping that we will be able to reinforce
41:01.5
that through continued promoting restraint
41:06.8
in this conflict. When it comes to the UK,
41:10.0
it's positive news. We are
41:12.3
happy to not be in a
41:14.3
recession and that we've seen some positive growth
41:16.3
rates. We obviously like it to be
41:18.3
higher and we'd like to continue to grow.
41:20.2
This is something that every country in the
41:22.2
G7 has struggled with recently and
41:24.2
the UK is doing pretty well
41:26.3
in comparison to them.
41:30.2
I think on the whole, we need
41:32.3
to be wary of this to make
41:34.2
sure that we don't count
41:36.3
our chickens before they've hatched
41:38.4
and to make sure that we
41:40.1
recognize the threat
41:44.2
of growing conflict and make sure that
41:46.2
we are reinforcing
41:47.3
our trade to make sure that
41:52.1
into the future to be a
41:56.0
plan and route into further prosperity
41:58.3
and peace. So, yes,
42:00.4
a challenging time for
42:02.2
everyone, a challenging time for the world market
42:04.2
but we believe that trade
42:06.0
and the peace and prosperity that come through
42:08.3
it are the way out of it.
42:10.3
James, the World Trade
42:12.1
Organization is forecasting goods trade
42:14.2
to pick up this year by 2.6%
42:18.4
year following last year's 1.2%
42:20.5
contraction. Are you confident
42:22.3
that this narrative will stay
42:24.3
despite all of the black swans
42:26.6
and the geopolitical tensions and
42:28.1
stickier than expected inflation
42:33.0
Yes, very hopeful.
42:36.3
a lot of positivity
42:42.3
despite the conflict
42:48.2
the reason for that increase
42:50.2
is because of inflation but actually
42:52.4
there is a recognition across the
42:54.4
world that there is a
42:58.0
for increased trade both in goods
43:00.4
and services to bring
43:02.3
us all closer together
43:03.8
and make sure that we are
43:06.2
de-incentivized from
43:08.3
conflicts such as this and
43:10.3
have the incentives to work
43:12.3
together as closely as possible.
43:14.0
Alright, and so Chris and James, for both gentlemen
43:16.4
the Philippines, US and Japan
43:18.5
are building a so-called Luzon
43:20.1
corridor of investments. What are we
43:22.4
expecting from the UK?
43:25.3
Well, let me take that
43:26.4
first and hand over to James.
43:28.1
The UK has expressed a great deal
43:30.5
of interest, particularly
43:32.2
obviously in renewable energy
43:33.7
also on the infrastructure side.
43:36.7
I'd also like to say as from
43:38.2
the chamber perspective
43:39.4
we've just recently had an event on
43:41.9
cyber security. The UK is a leader
43:43.9
in that and that's actually a very key and
43:45.9
important area for the
43:48.1
Philippines. It's actually been noted as one of the
43:51.1
for this administration
43:53.6
and in that we see that as important
43:56.0
both for the private and the public sector.
43:58.3
We just held a recent event with
43:59.9
DICT and one of our members, CyberQ
44:02.5
UK and we will continue
44:04.3
to push forward on that.
44:06.4
So we expect the investments to be
44:08.2
there. I've just made in the previous time
44:10.0
a reference that we will have the British
44:12.1
Chamber of Parliament's annual meeting
44:14.0
at the same time the embassy through
44:17.8
actually the UK Trade Commissioner
44:20.0
Martin Kent who's based in Singapore
44:22.8
are looking to do a series of events
44:25.0
in the UK in June and that's to encourage
44:28.9
more companies to do trade and investment.
44:31.0
So I think the UK is looking at that
44:33.3
and let's not forget, now I'll hand over
44:35.4
to James, they're looking to upgrade the trade
44:38.2
relations between the UK to what they call
44:40.4
a joint economic or a jet
44:43.9
All right, James, you want to take over?
44:47.4
Yeah, I think let me first start by saying this is
44:54.0
really exciting news. I think it's brilliant that
44:56.2
the Philippines is getting increased investment,
44:58.4
particularly in this part of the country.
45:01.7
I was actually just on holiday in Northern Luzon
45:06.6
going through the rice terraces of the Philippines,
45:08.2
going through Norway and climbing up Mount Balag.
45:10.1
So really, really exciting to see that so much
45:12.8
investment is going to go into such an amazing place.
45:16.2
In the UK, I'll agree with Chris,
45:19.0
it's got a huge amount to offer as well.
45:21.3
So lots of the priority areas at this partnership
45:27.2
are in infrastructure, as well as clean energy.
45:30.6
And these are things that the UK has a huge expertise in.
45:33.6
So there is hopefully going to be lots more investment from the UK.
45:37.0
So there is hopefully going to be lots more investment from the UK.
45:37.6
investment from the UK, but even
45:39.1
where there is investment from other
45:41.3
countries, what the UK is brilliant
45:43.4
at are third country
45:44.9
cooperation. So we
45:47.2
love to work closely with other countries
45:49.5
to make sure that our expertise
45:51.3
in some of these really
45:53.5
critical infrastructure
45:54.6
projects can help to support
45:57.4
the successful implementation of it.
45:59.9
So we're hoping to do
46:01.6
lots more in this space following
46:03.2
on from this brilliant
46:05.4
announcement. And
46:07.1
as Chris has mentioned, we have
46:09.3
some of our own excellent announcements coming up soon
46:11.6
in this year to further the
46:13.5
UK-Philippines trade relationship.
46:15.3
We're really excited about it.
46:16.8
James, while you do want
46:19.4
to see the trade ties improve,
46:23.6
a pending legislative policy seeking
46:25.3
to raise the daily minimum wage in the Philippines.
46:28.1
Local companies have already
46:29.3
expressed worries about it.
46:31.5
Is this a make or break deal
46:32.8
for foreign, for UK investors in particular
46:35.4
doing business here?
46:37.1
I certainly think it will
46:39.4
impact the decision of
46:41.4
investors. It would make sense
46:43.6
for them to. It would be an oversight
46:45.1
not to consider it. But what I would
46:47.4
say is that it is really
46:49.3
important to have strong minimum wage.
46:51.5
The UK knows this. We've got a
46:53.1
long, proud history of making
46:55.5
sure that our workers
47:00.9
are fairly paid and looked after
47:03.2
by the government through a minimum
47:05.5
wage. We were actually the third
47:07.1
country in the world to implement a minimum wage.
47:09.5
Earlier this month, we have increased
47:11.3
our own. So, whilst
47:13.3
it's important to recognize
47:19.5
minimum wage will have an impact
47:22.8
minimum wage is there to make
47:25.3
sure that the workers get
47:27.1
a fair deal. And that's really important for the
47:29.3
long-term sustainability of the
47:31.3
economy and the country, which make
47:33.0
Philippines a longer-term
47:37.1
investment. So, there may be
47:41.5
from investors, but
47:42.9
I think this policy and minimum
47:46.6
is there to make sure that
47:50.6
remains a strong source of investment.
47:53.5
So, we are supportive in that
47:55.4
respect. Alright. And finally,
47:57.4
Chris, every time we talk
47:59.4
to you, it seems like
48:00.8
the key areas of priorities
48:03.0
for the chamber would be pork,
48:07.1
and travel. You have travel talks coming up.
48:09.4
They also know that you enjoy
48:11.4
golf very much. They say
48:13.3
a lot of the deals are actually sealed
48:15.5
in the green. I think we have
48:17.4
a photo of you playing golf.
48:27.6
Bailey, playing as well. Yes, we
48:29.4
just recently had the British Chamber Golf
48:31.6
on the 11th of April
48:35.6
We'd like to thank one of our main
48:37.1
partners. This time was actually FWD,
48:39.8
but we'd also like to thank, we're very
48:41.3
much supported by a wide range of sponsors.
48:45.0
players. This is our 12th
48:47.5
golf day. And I think it shows
48:50.9
both UK and Philippine
48:53.4
companies, because we have obviously
48:55.0
broad membership, over 300.
48:57.4
And that does reinforce.
48:59.1
And yes, it's a reinforcement again.
49:03.4
thank you for mentioning our travel talks.
49:07.1
12th edition of Travel Talks.
49:09.0
We're very confident. We want to see
49:12.9
British tourists grow.
49:15.3
We were 8th last year.
49:17.3
And we're looking forward to working with the Department of
49:19.2
Tourism and highlighting key opportunities.
49:23.3
a good golfing day. And at the same
49:25.2
time, we're looking forward to Travel Talks
49:26.8
and growing relationships
49:29.2
between the Philippines and UK. And on that note,
49:31.3
gentlemen, thank you so much for joining
49:33.3
us this week. Great to see
49:35.4
you. Great to hear your insights. See you soon.
49:37.1
Thank you very much. And a good
49:39.3
day to you and all your viewers.
49:41.1
Alright. Thanks, Chris. Thanks, James.
49:45.1
Now, a very quick look at the flash business
49:47.1
headlines. We're overseas. The much contested
49:49.3
acquisition of US Steel
49:51.2
now a step closer to becoming a reality.
49:53.3
The shareholders just approved
49:54.6
the nearly $15 billion proposed acquisition
49:57.4
by Japan's Nippon Steel
49:59.2
despite political opposition.
50:01.9
On to more news. German Chancellor
50:03.3
Olaf Scholz brings a
50:05.2
warning as he visits China this week.
50:07.1
Failure to act on Europe's
50:10.6
discriminatory business practices
50:13.1
will result in escalation
50:14.9
of tensions. That is the warning.
50:18.9
four years Bitcoin software update
50:20.9
called The Halving
50:22.5
set to trigger multi-billion dollar declines
50:24.8
in revenue for the companies that ensure
50:26.5
Bitcoin's smooth functioning. Around
50:28.8
April 20, The Halving will
50:30.8
cut the amount of Bitcoin that miners cut
50:32.8
can earn each day for validating
50:34.9
transactions to $450 from
50:39.0
Bitcoin holders watching out for that
50:40.9
moment to see if prices will spike.
50:43.2
On to more news. BNP Paribas
50:45.0
signs an agreement with China's Fosun
50:47.1
Group to acquire around 9%
50:48.8
of its stake in Belgian insurer
50:50.9
Aegis. While Boston is
50:53.0
anticipating a $200 million
50:54.4
economic windfall, as it
50:57.0
prepares, this is the next story, as it
50:59.0
prepares for the 128th
51:01.0
Boston Marathon. The event takes
51:02.9
place Monday, set to welcome
51:06.9
And a vast number of spectators
51:09.0
from over 130 countries.
51:11.1
Finally, Nike unveils a barrage
51:13.1
of new products as it hopes the shoes
51:15.2
can reignite its fortunes.
51:16.5
The shoes which was released ahead of the
51:18.4
Paris Olympics set for July include
51:20.2
an Alphafly built for marathoners,
51:22.9
improved track spikes, boots
51:24.7
for footballers, and its landmark
51:28.3
And that's it for the show. Before
51:30.5
we go, by the way, those who tried to guess
51:32.3
the indicator, the favorite indicator
51:34.4
of Angel Passes is the VIX.
51:38.7
Do let us know if you got that. Do tweet us at
51:40.4
ANC Alerts. In the meantime, that's it for the show.
51:42.8
I'm Michelle Long. Thank you all so much for
51:44.6
watching. Stay safe and stay with ANC.
