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00:00.0
Hello everyone, I'm Stanley Palizada. It's 9am in Manila, 10am in Tokyo and 9pm in New York.
00:12.4
We headline Asian stocks trading cautiously as investors digest key data and the latest round of corporate earnings in the US.
00:21.3
Here at home, the PSE index kicks off from the 6572 level.
00:26.3
The massive fire that hit home improvement retailer Wilcon Depot leaves hundreds of millions in damages.
00:36.1
The Philippine government's budget deficit narrows in March.
00:41.9
And later, we continue our discussion on renewable energy and the country's power woes with RMI's Paula Valencia.
00:50.9
We begin with a look at the regional equities this morning.
00:54.0
Asian markets taking a breather.
00:55.8
After two straight days of rallies, Japan's Nikkei fell 1.34% while South Korea's KOSPI index also seeing a decline.
01:06.3
Investors will assess Seoul's advanced first quarter GDP growth of 3.4% year on year, the highest quarterly growth since the fourth quarter of 2021.
01:17.0
Now separately, the Bank of Japan kicks off its monetary policy meeting as investors monitor the action against yen's weakness.
01:25.8
The yen slid past the 155 mark against the US dollar Wednesday, hitting a fresh 34-year low.
01:34.9
Meanwhile, markets in Australia and New Zealand are closed for a public holiday.
01:41.0
Meanwhile, US stocks were mostly lower on Wednesday as traders digested the latest round of corporate earnings.
01:47.7
The benchmark S&P 500 was flat while the Dow Jones finished lower.
01:52.3
The tech-heavy Nasdaq, meanwhile, gained only a tenth of a percent.
01:55.8
The latest market movement came after more mega-caps released their earnings reports.
02:02.2
Shares of Meta platforms fell 15% in extended trading after the tech giant forecasted higher expenses and lighter-than-expected revenue.
02:12.9
The disappointing outlook overshadowed Meta's better-than-expected first quarter results.
02:18.6
Microsoft and Alphabet also scheduled to report their results later this week.
02:23.6
Now investors are waiting for...
02:25.8
The first quarter GDP to roll out today, as well as the personal consumption expenditures price index set to be released Friday.
02:34.2
These will give markets a sense of how strong the economy is growing and point to the Federal Reserve's next move.
02:42.4
I think investors are going to be very focused on earnings probably for the next two weeks.
02:49.0
It's hard to say whether they're going to send stocks back up.
02:52.1
It really depends on what numbers are reported.
02:55.8
Are we seeing continued resilience to inflation?
03:00.3
Or on the other hand, are we seeing higher costs, higher input costs, and therefore shrinking profit margins?
03:07.8
So at this point today, we don't really know how that's going to fall out just yet.
03:16.3
I think the market is going to turn back to what the Fed might do.
03:25.6
You know, what's happening in the geopolitical world, you know, with the two wars going on and so on.
03:35.1
And then I think, you know, as we move out maybe a couple of months, we're going to start to...
03:40.1
The election is going to really start to weigh heavily on investor expectations.
03:48.4
Taking a look at the U.S. futures, they are pointing to fall amid concerns that the industry that has power,
03:54.5
the bull market in equities...
03:59.9
Now here's a look at the local corporate headlines we're watching out for this morning.
04:04.3
AirAsia CEO is deferring his retirement to ensure the survival of the Malaysian Budget Airline Group.
04:10.9
Capital A announced Wednesday that Tony Fernandez is staying on for another five years.
04:16.4
The entrepreneur credited for steering AirAsia to profitability will be tasked to focus on driving the company's growth and financial returns.
04:25.6
Fernandez had said in January that he plans to retire within the next five years.
04:31.8
And GSIS sees its bottom line growth 21% in the first quarter of the year.
04:37.4
The insurance system for state workers cites strong growth as it focuses on building efficiencies in its various businesses.
04:45.0
Now GSIS, which has shares in some publicly listed companies, says its total assets are now at 1.7 trillion pesos.
04:52.6
It added that its pension fund can now last...
04:55.6
until 2058 due to sustained investment returns.
05:02.1
Philippine mining operator Oceana Gold says a regional trial court in Nueva Vizcaya has denied a petition against its mining permit renewal.
05:11.3
The company in a statement today said the provincial RTC denied local groups petition against its operations in the DDPO mine.
05:20.5
OGPI reiterates it complied with government's requirements...
05:24.6
for the renewal of its mining...
05:26.5
Groups earlier this week alleged Oceana Gold's permit was renewed illegally and lacked consultation with communities.
05:34.7
The legal action by stakeholders comes weeks before Oceana Gold's public listing at the stock market.
05:42.9
The Securities and Exchange Commission cancels the registration of an operator of some online lending platforms.
05:49.4
The SEC revoked the license of Copperstone Lending over unfair debt collection practices.
05:55.9
The company was ordered to pay 20,000 pesos for this.
06:00.6
The SEC says Copperstone also failed to disclose to borrowers the true and correct terms of their loan contracts.
06:07.0
The agency responded to complaints filed by borrowers who said Copperstone's lending platforms resorted to unfair debt collection tactics...
06:17.1
such as threatening them with possible legal action and sending messages to their non- guarantors or even references.
06:25.6
SM Investments Corporation, one of the country's largest conglomerates, says the country's ongoing territorial row with China has no major effect on the company.
06:37.8
Jackie Pascual tells us more.
06:41.4
SM Investments Corporation is allotting around P115 billion in capital expenditures this year, excluding CAPEX for its banks.
06:50.1
The group is confident of growing all its core and non-core businesses amid inflation and other external challenges.
06:57.9
At its annual stockholders meeting, SMIC Chairman Amando Titangco Jr. says many consumers have adjusted their spending habits, which is why SM is also offering products at different price points.
07:10.6
We have seen steady discretionary spending on fashion, health and beauty, pets, toys, and other discretionary items.
07:20.1
We also see discretionary spending in the malls through dining and entertainment activities.
07:27.9
Consumers are adjusting their spending behavior amid the heightened inflation environment to continue meeting their daily needs.
07:36.4
The group is also not affected by the ongoing territorial dispute with China, even if SM has eight malls in China.
07:44.4
SMIC says it is much more focused on its Philippine market.
07:50.1
Our strategy is not deeply affected or in any way affected by geopolitics.
07:55.1
It is a risk that we look at as a way of risk management.
08:02.0
But really our strategy in terms of our expansion and the core strategy of our core businesses are not impacted by that at all.
08:11.0
Gomez says overall they are very bullish with the Philippine economy, driven by the low unemployment rate and high remittances sent from overseas.
08:18.5
There are headwinds.
08:20.1
There are headwinds on inflation along the way and some uncertainty around geopolitics.
08:26.6
But we are still confident that the fundamentals of the country remain intact.
08:31.9
So there shouldn't be significant changes in the outlook for the long term.
08:39.6
SMIC with SM Prime Holdings are also tapping the overseas market with a 3 billion euro medium term note program.
08:47.0
The company has been...
08:50.1
...on its continuous expansion mode.
08:52.8
So we will always be in need of financing.
08:56.2
We are investing in fixed capital, which would require a steady flow of sources of financing for the company.
09:07.2
Expand the portfolio of our sources so that we have the ability to fully fund our expansion.
09:16.3
Expansion plans are underway mostly to provincial areas.
09:20.1
SM Prime is to open four malls this year, three of which will be in the provinces.
09:25.6
About 100 supermarket and specialty stores are also being planned for the year,
09:29.8
as well as 400 new Alphamart branches and 8,000 to 10,000 additional residential units this year,
09:38.2
including in North Luzon, Visayas, and Mindanao.
09:42.1
Jackie Pascual, ABS-CBN News.
09:46.7
Around P288 million pesos.
09:49.9
The most worth of damage recorded after a massive fire hit a branch of home improvement retailer Wilcon Depot on Wednesday.
09:58.0
The fire which erupted at Wilcon's Baliwag Bulacan store reached fourth alarm before it was declared out after 10 hours.
10:05.8
No one was reported injured from the incident.
10:08.3
The store owned by businessman William Velo meanwhile vowed to cooperate with investigators to determine the cause of the blaze.
10:14.8
The manager said that...
10:19.6
May narinig daw po sila sa may gawing electrical section,
10:22.9
electronic section, yung mga...
10:25.0
...yung section ng mga ilaw, mga ganon, appliances.
10:28.5
And then, nung pagtingala daw po nila, nakita nila, gumapang na sa...
10:34.0
Aluminum tube, ang tawag doon, ng aircon.
10:36.5
Yung apoy, malayo na daw po yung narating.
10:38.3
Sa area na yun, electrical and then paints and then wood, yung mga door, yung mga...
10:44.6
...wood supplies nila.
10:49.6
In other news, industry players warned power situation in the Philippines could worsen further as the country deals with searing temperatures.
10:58.8
Alvin El Chico reports.
11:01.2
After Luzon and Visayas, now comes Mindanao.
11:05.1
The National Grid Corporation declared a yellow alert status for Mindanao from 10 a.m. until 4 p.m. Wednesday, which means thinning electricity reserve.
11:14.6
Merong malaking planta na nag-out na coal.
11:17.7
Nasa 138 megawatt siya.
11:21.6
So, noong April 17, may isa pang coal na 135 naman.
11:26.5
And of course, yung mga hydro natin, medyo mababa talaga ang paggawa niya ng kuryente.
11:36.3
Since it's impossible to build power plants overnight, the energy department has no choice but to resort to demand-side management...
11:43.8
...which means appealing to consumers to use energy efficiently.
11:47.7
Hindi naman bawal ang mag-aircon, for example.
11:52.3
Pero siguro dapat yung maayos lang ng paggamit ng ating mga appliances.
11:57.5
Halimbawa, sa aircon, sa halip na 18 degrees yung setting natin, pwede naman tayo ng 25 degrees or even a little lower at 23 degrees.
12:06.6
But it appears that the appeal is not working as the country posted the highest electricity consumption for 2024 last Tuesday amid rising temperatures all over the country.
12:17.7
Ito siguro ang naging dahilan kung kaya't nagkaroon tayo ng pag-nipis ng supply ng kuryente, lalong-lalo na sa ating mga reserba.
12:27.2
None of the industry experts ABS-CBN talked to can categorically declare that the power situation will be back to normal soon considering the number of plants on shutdown.
12:37.8
According to NJCP and Miralco, it's possible that the worst is yet to come.
12:43.0
Kailangan natin ang tabayanan araw-araw kung mag-improve ba yung sitwasyon.
12:47.7
At yun na lang talaga ang magagawa natin sa ngayon.
12:52.6
Yun yung kailangan din natin pang pagpahandaan. Hindi pa ito tapos.
12:56.7
Gusto ko lang sabihin sa ating mga kababayan, we have not seen the highest demand yet based on the historical data that we have.
13:04.6
Alvin Olchico, ABS-CBN News.
13:08.7
Now amid the worsening power crisis, the Philippine government is taking a more aggressive stance to ramp up renewable energy in the country.
13:16.5
Now it is targeting to reach 35% renewable energy share by 2030 and eventually raise it to 50% by 2040.
13:26.0
Now a US-backed market research firm recently released a study pinpointing three areas in the Philippines suitable for offshore wind power development.
13:34.7
And among these, the Manila Bay.
13:37.3
To talk to us now more about the result of that study, we have with us Paula Valencia, RMI's Senior Associate.
13:44.5
Hi Paula, welcome to Market Edge.
13:46.5
Hi, good morning Stanley.
13:49.6
It's good to have you here.
13:50.7
Now really it's amazing that the Philippines has what, over 36,000 kilometers of coastline with a total technical potential of 178 gigawatts from offshore wind alone.
14:02.9
Now tell us just how much that potential can ease the current and even the future power supply situation in the country.
14:12.4
So as we've seen in the last report, we have yellow.
14:16.6
And red alerts in the Philippines right now, especially during the summer months.
14:20.9
It's because of the high demand for electricity and again, the scheduled and unscheduled shutdowns of our coal power plants.
14:29.4
So with this, the Department of Energy is really aiming to reach 35% renewable energy by 2030.
14:37.9
And since we have a moratorium on coal, that means no new coal power projects other than those that are already in the pipeline.
14:46.5
There is more push for more bigger and larger renewable energy installations, one of which is offshore wind.
14:53.8
So if we get these offshore wind developed in these decades, then it will really provide that ease for us and will provide more reserves for electricity in the country.
15:06.6
All right, Paula, you mentioned decade.
15:08.3
Now it's really an understatement to say now is a good time to be talking about additional energy sources and even improving the country's power mix.
15:16.5
Given the power crisis we're experiencing right now, but time is really not on our side when you talk about decades now.
15:23.7
Offshore wind and other large-scale renewable energy development projects may take more years to provide really a sizable supply.
15:32.6
Is there a way to hasten our progression towards these options?
15:36.2
What do you think?
15:40.6
So actually, the main purpose of our study is to pinpoint which of the sites in the Philippines has the most.
15:46.5
Potential in the near-term development.
15:48.9
So not all sites are made equal.
15:52.4
So some of them can be easier developed than the others.
15:56.4
So we conducted pre-visibility study in the areas of Manila Bay, Tayabas Bay, and the water surrounding Guimaras Island.
16:02.9
And the study focused on the zones that accommodate fixed-bottom installation to support the government's 2030 renewable energy targets.
16:09.9
So with this one, we are looking at the sites.
16:14.8
They have wind speeds.
16:16.5
They have wind speeds of greater than 7 meters per second.
16:18.8
Proximity to major load centers in southern Luzon and western Visayas.
16:23.1
Areas with relatively shallow water depths of 50 meters, which would allow fixed-bottom foundation wind turbine generation designs.
16:30.6
And access to deeper areas for floating in the near future.
16:34.3
So the reason why this is such the case is because 90% of the country's offshore wind potential is actually for floating solar.
16:43.5
And the technology for floating solar is not yet readily available.
16:46.5
So for the available technology, which is fixed-bottom foundation, it's already available.
16:53.5
But the areas that will allow it are very limited.
16:57.2
So these are Manila Bay, Tayabas Bay, and the ones that we have surrounding Guimaras.
17:02.0
But for these areas, for example, for Manila Bay and Tayabas Bay, we have already interconnection points available and ports available for assembly.
17:12.0
So these are good sites actually.
17:13.5
But for example, for Guimaras.
17:16.5
Higher capacity is available, but it would require more infrastructure, especially in transmission and ports.
17:23.6
So as we all know, Panay Island faced power shortage earlier this year due to temporary maintenance shutdown of one of their power plants.
17:31.1
So connecting Panay Island to Negros and Cebu with bigger transmission lines will help solve this power issue.
17:37.6
And at the same time, will allow absorption and exchange of large-scale renewable energy.
17:42.2
Okay, so you mentioned Manila Bay, Tayabas Bay, and Guimaras.
17:46.5
I thought for a moment, this was chosen strategically because of the power crisis in the Visayas where Guimaras can, of course, respond to those needs.
17:56.0
And then you have Luzon.
17:57.0
But really, it's capacity.
17:59.4
It is the type of areas that can provide maximum potential in terms of harnessing wind energy.
18:07.7
It is quite surprising that we don't have a lot in the Philippines.
18:10.9
Are you looking at other areas as well still?
18:14.6
We have actually a lot.
18:17.1
But the issue with our country is, again, we have really deep waters.
18:21.2
So for deep waters, the technology is not yet as mature as the ones that can be done in shallow waters.
18:29.8
So for example, we have good areas in Ilocos Norte.
18:37.7
So right now, we have onshore wind in the Burgos-Bangui area.
18:42.1
But once you go further offshore, then it will be deep.
18:47.0
And it would require more floating, similar to the other areas in Guimaras.
18:51.3
I think the issue why we didn't include Ilocos is because they have small ports.
18:56.1
And if you have small ports, that means that more infrastructure investment is needed in that area.
19:02.6
So the nearest port in that area where you can assembly is not that ready for big-scale development.
19:13.0
The turbines that we're looking at is around 150.
19:16.5
They are about 350 to 250 meters in length.
19:20.3
So it would require really big ports.
19:23.0
I was wondering too, Paula, why no selection in areas like the eastern seaboard, if you will?
19:28.7
I mean, you know, we have a very long coastline there.
19:31.3
Possibly, the wind potential is also encouraging.
19:34.8
Why is that not included in the selection?
19:37.7
And even areas in Mindanao, there could be a lot of potential there as well.
19:42.1
Are we looking at those right now?
19:45.2
So for the areas in Mindanao, there could be a lot of potential.
19:46.4
So for the areas in Mindanao, there could be a lot of potential there as well.
19:46.5
And now, they actually don't have enough wind resource.
19:49.6
It's not as abundant as the ones that we have in the northern areas of the country and also in western Visayas.
19:56.7
For the case of the eastern seaboard, it was avoided because one of the deep waters,
20:02.0
but also because it's where the typhoons are strongest.
20:06.6
So, this is where the typhoons come in and they're so strong that it might actually damage the turbines.
20:12.4
So, it's not recommended that we put them in those areas.
20:17.0
Okay. Now, Paula, it is said that 90% of the Philippines' offshore wind technical potential is in deep waters.
20:24.1
So, really, long-term offshore wind market in the Philippines will need to focus on the floating foundation turbines.
20:31.4
Now, what factors must we consider to tap into this potential knowing how costly this type of project can be?
20:39.1
I mean, is it possible through public-private partnership or foreign investors?
20:44.0
What's the direction there?
20:46.5
So, the DOE actually is currently looking at different types of investment opportunities.
20:53.3
So, right now, we're DOE studying the ports and what types of upgrades can be done to the ports near offshore wind development sites.
21:02.9
Another one is transmission upgrades.
21:06.7
Other than ports and transmission upgrades, most will be done like on-site studies,
21:11.5
like the geotechnical, geophysical studies of these sites,
21:16.5
to make sure that we're not installing in areas that are protected.
21:22.8
So, these are marine-protected areas.
21:26.1
But also, the Philippines opened 100% foreign ownership for renewable energy projects.
21:32.3
So, this actually attracts investors.
21:34.3
So, I think the investment issue that we're looking at right now is more on the transmission side and the port side of things.
21:41.7
But on the development side of things,
21:45.0
there is a lot of interest.
21:46.4
There is a lot of interest coming in from other countries and international financing institutions as well as commercial banks for offshore wind.
21:54.4
You know, one of the assumptions of your study at Rocky Mountain Institute also points to the Philippines as having, you know, promising wind potential and high electricity costs.
22:04.4
These are factors making us an ideal market to catalyze on offshore wind industry across Southeast Asia.
22:12.4
Now, are there other countries here that are in a similar situation as us?
22:20.4
is there any country in the world that has a wind energy company that was able to capitalize on wind energy and what was their experience like?
22:25.4
If you can share with us.
22:27.4
For the rest of Southeast Asia, not yet.
22:29.4
For example, countries like Vietnam and Indonesia are looking at it as well.
22:31.4
But I think the success stories that we can share, the ones probably in Taiwan.
22:38.4
So, Taiwan has more shallow waters and they have more consistent wind speeds.
22:42.4
So, if you think about batanes,
22:44.4
you know, we have a lot of cool things in Taiwan.
22:45.4
batanes. The wind speeds
22:47.8
of Taiwan is similar
22:49.2
to the ones in batanes. So they really have
22:53.8
for them to install
22:55.3
offshore wind. There's also
22:57.8
a lot of interest coming in from foreign
22:59.9
companies in Taiwan
23:01.4
to make their case and
23:05.5
a pilot in Taiwan to show
23:07.7
the rest of the region what
23:09.4
the potential could be for them.
23:12.0
Alright. Now we know that government
23:13.8
has of course mandated to
23:15.5
prioritize renewable and sustainable energy
23:17.9
moving forward now. Are policies
23:19.8
to push this shift
23:21.8
adequate? What's your view? I mean,
23:23.6
how do you think policymakers and regulators
23:28.1
Do they do more to accelerate offshore
23:29.8
wind energy use in the country? Is there
23:31.7
enough encouragement
23:35.9
shift in that direction soon?
23:39.7
So President Marcos actually
23:41.9
signed executive order number
23:43.7
21 to direct the establishment
23:45.8
of the policy and administrative
23:47.6
framework for offshore wind development
23:49.8
in the country. And after that
23:54.2
and DNR has been working
23:57.1
to work on permitting
23:59.6
requirements and other
24:03.0
policies needed to
24:05.5
make this happen. I think
24:07.4
what needs to be done
24:08.9
will be more push on the
24:12.9
give NGCP more nudge
24:17.6
transmission lines
24:20.0
because like regardless if you
24:21.7
have these offshore
24:23.7
wind zones or not,
24:25.2
if there's no place or if there's
24:27.7
no line to connect it to, then
24:29.3
it won't go to the consumers.
24:31.2
It's a challenge I would imagine.
24:33.4
Now Paula, if you were to plot a
24:35.2
road map for offshore wind power
24:37.1
in the Philippines, maybe a scale of 1
24:42.9
and 1 being just starting,
24:45.1
where are we right now?
24:49.2
are around 4 or 5
24:51.3
right now, so we're laying all the foundations
24:53.5
all the ground. That's already a
24:55.0
considerable score
24:56.5
at 5, don't you think?
25:01.1
Maybe I'm being optimistic, but
25:02.8
maybe also because I see
25:07.4
DNR and the other government
25:09.4
agencies have been working on this one.
25:15.2
all the foundation, they're laying all the
25:17.0
groundwork, they're accepting all
25:19.1
the help they can get from
25:21.0
different CSOs and even
25:23.1
foreign government just to really
25:25.2
prepare ourselves for offshore wind development.
25:27.7
And it's a matter of
25:28.7
identifying, okay, which
25:31.0
ports do we invest on first?
25:32.9
Which transmission line do we
25:38.7
Finally, offshore wind is just one
25:41.1
of the many options the government
25:42.9
is looking into right now. In fact,
25:44.8
a mix of renewable energy, clean
25:46.9
energy, and even nuclear energy.
25:49.5
They're even considering
25:51.0
those possibilities. Now, if you were to make
25:53.0
a pitch now for offshore wind,
25:55.2
what would be your best case
25:56.7
argument for this?
26:02.7
renewable offshore
26:04.7
wind is one of the best types of
26:06.8
renewable energy available because
26:08.4
it provides us with
26:10.5
economies of scale that
26:12.9
would provide us with
26:14.8
more electricity over the
26:16.9
course of many years in the
26:18.8
Philippines. It is capital
26:21.0
intensive, yes, but
26:22.6
the return would be much
26:24.6
greater once we have done the
26:26.7
investments early on.
26:29.3
Alright. On that note, we end this
26:30.8
conversation. Again, thank you so much for joining us
26:32.9
today. Paula Valencia,
26:35.3
Rocky Mountain Institute
26:36.2
Senior Associate. It was great talking
26:38.7
to you. Thank you so
26:40.9
much, Stanley. Alright. Moving
26:42.9
on to more news, the Philippine government's
26:44.7
budget deficit narrows in March on higher
26:46.8
revenue collection and increased
26:48.9
state spending. Data from
26:50.9
the Treasury Bureau show the country
26:52.7
posted a fiscal gap
26:57.1
billion pesos last month,
26:59.0
nearly 7% smaller
27:00.5
year over year, but
27:03.0
30 billion higher
27:04.6
month on month. Now, the overall
27:06.6
deficit in the first quarter also widened
27:10.7
billion pesos from last year.
27:12.9
Treasury said tax revenues
27:15.0
dipped to nearly 224
27:17.2
billion pesos amid a decline
27:18.9
in collections by the Bureau
27:20.9
of Customs. Now, government
27:23.1
spending reached 1.2
27:24.9
trillion in the first three
27:31.3
The Philippine Deposit
27:32.9
Insurance Corporation putting up over
27:34.8
100 real properties up for
27:36.9
sale in an electronic bidding
27:38.8
next month. The attached agency of
27:40.9
the Banco Central ng Pilipinas says
27:42.9
subdivision, residential, and
27:44.9
commercial lots would be sold in
27:46.9
the bidding from May 22nd
27:48.9
to the 23rd. Now,
27:51.0
most of these are in Luzon with
27:52.9
sizes reaching as much as
27:54.9
nearly 3,000 square meters.
27:57.8
The properties are from banks
27:59.1
previously closed and acquired by the
28:00.9
PDIC. The deposit
28:02.7
insurer is tasked by the law
28:04.4
to liquidate assets of closed banks
28:06.7
and help pay claims of
28:08.9
the closed lenders' creditors.
28:12.9
A crypto trading platform
28:15.2
says some Bitcoin miners could be
28:17.1
discouraged from continuing their mining
28:19.1
activities following the cryptocurrency's
28:21.4
so-called halving.
28:23.3
Now, this phenomenon occurs
28:25.0
around once every four years,
28:27.3
cutting the reward for Bitcoin miners
28:35.1
that there is a ledger
28:37.2
called the blockchain that
28:39.0
maintains all the transactions
28:42.9
these ledgers are maintained
28:44.9
by what we call miners.
28:47.3
Obviously, they're using a lot of
28:48.8
computing power to maintain the network.
28:53.0
in exchange for giving that
28:54.9
computing power, they get
28:56.9
rewarded by the blockchain with
29:00.6
Right now, every 10 minutes,
29:04.8
Bitcoins are being created.
29:07.1
But since the halving,
29:09.1
it's dropped down to
29:10.7
3. How might that impact the
29:12.9
market is obviously, when
29:14.6
supply shrinks, what tends
29:16.9
to happen if demand is constant,
29:22.9
What will happen to the miners?
29:25.0
Well, some of the miners who
29:26.5
are not able to offer their
29:28.9
quote-unquote mining services
29:33.1
hash rate or at the current
29:34.6
mining output, they
29:36.8
will probably stop mining
29:38.4
and the more efficient miners
29:40.7
will get more of the reward.
29:45.0
PDACS remains bullish on the
29:46.8
attractiveness of Bitcoin post-halving.
29:53.1
nearly 25 million pesos worth
29:55.1
of illegal vape products
29:56.7
confiscated by Philippine authorities.
29:58.9
The illicit items were being sold
30:00.6
at a milk tea shop near the premises
30:03.0
of an elementary school.
30:04.9
Lady Bicentio reports.
30:09.0
boxes of vape products were confiscated
30:11.4
by the Philippine Trade Department,
30:12.9
and the PNP Southern Police
30:14.8
District in an operation in
30:16.4
Baclaran, Paranaque on Tuesday.
30:18.5
These were discovered in a milk tea shop
30:20.5
used as a front for selling vape.
30:22.8
The site is only 20 meters away
30:24.8
from Baclaran Elementary School
30:26.4
and operating without registration to sell
30:28.6
such commodity. Under the
30:30.6
vape law, selling vape products within
30:32.6
100 meters of schools is
30:34.5
prohibited to prevent miners from being
30:36.6
enticed to use electronic cigarettes.
30:39.1
The DTI also found out
30:40.7
that the brand of these confiscated items,
30:42.9
was issued a preliminary order
30:44.7
and was ordered to halt operations.
30:47.4
We established more or less
30:48.8
its pattern since it was released.
30:50.5
March 15, preliminary order,
30:52.1
DTI also suspended trading,
30:55.1
meaning manufacturing, importing,
30:57.3
distribution, and selling.
30:58.9
We followed this particular brand.
31:01.8
The items were also
31:03.5
labeled with flavor descriptors,
31:05.4
also prohibited under the vape law.
31:07.6
The confiscated vape products
31:09.1
are valued at 24.8 million pesos.
31:11.9
The confiscated vape products are valued at 24.8 million pesos.
31:12.9
The confiscated vape products are valued at 24.8 million pesos.
31:13.2
The confiscated vape products are valued at 24.8 million pesos.
31:13.2
The confiscated vape products are valued at 24.8 million pesos.
31:13.6
They are the same again and again
31:16.2
that there are always flavor descriptors,
31:19.7
there are always events
31:21.0
that influencers use.
31:23.2
It just happened that when it opened,
31:25.5
we saw that their entire stock
31:28.7
But there are many other brands
31:30.8
that violate the vape law
31:32.7
and all of that, we caught
31:34.3
online and physical
31:38.6
An initial investigation revealed
31:40.8
that the milk tea shop is owned by
31:42.7
to Chinese nationals.
31:44.5
A notice of violation has been given to the owners
31:46.8
for multiple violations of the
31:48.8
vape law. The DTI also
31:50.6
committed to hold the manufacturer accountable
31:52.7
for violating the preliminary order
31:54.9
issued to them. Lady
31:56.5
Vicencio, ABS-CBN News.
32:00.6
The agricultural damage due
32:02.7
to the prolonged drought caused by the
32:04.6
El Niño phenomenon nearing 4 billion
32:06.7
pesos. Government's El Niño
32:08.4
task force said over 100
32:10.4
cities and municipalities in the country
32:12.4
were also put under a state of calamity.
32:15.2
El Niño is projected to
32:16.4
affect all but two provinces
32:18.0
by the end of this month.
32:23.3
billion na po ang
32:24.3
danyo sa agrikultura. That's
32:26.3
equivalent to about 66,000
32:28.4
hectares. Pero I would like to
32:30.2
emphasize po na 78 percent
32:32.5
nung 66,000 hectares na yun
32:34.6
may chance of recovery
32:36.6
or salvageable pa. Ibig sabihin
32:39.9
itsura ng taniman e
32:42.0
tuyong-tuyo o brown na brown
32:44.1
na siya, mapapakinabangan po yung
32:46.0
78 percent ng pananim doon.
32:54.0
Meanwhile, State Weather Bureau
32:55.9
Pagasa projects by the end of May
32:57.9
the water level at Angat Dam could
32:59.9
fall near its minimum operating level
33:01.8
while that of Pantabangan Dam
33:03.9
could increase to a figure
33:06.0
slightly above its MOL.
33:08.5
Magat Dam, on the other hand,
33:10.3
could reach its normal high,
33:14.1
in the same month.
33:18.0
Now, here's a look at the other stories
33:20.0
we're tracking today at 10 in the morning.
33:22.0
A forum will be held in UP Diliman
33:24.2
in Quezon City, tackling data
33:25.9
privacy, cyberbullying, and other
33:28.0
tech issues. Happening
33:29.9
within the same hour, the National
33:31.7
Wage Coalition will hold a press conference
33:34.1
about its protest action
33:38.1
And we will also keep tabs on the
33:40.0
2024 Balikatan exercises,
33:42.0
the Philippines, and the United States.
33:48.4
today's market guide with Katrina Dizon
33:50.4
of AIA Investment Management
33:52.1
and Trust Corporation Market Edge.
33:54.1
We'll be right back.
34:12.0
You're still watching Market Edge,
34:20.8
the headlines, Philippine authorities
34:22.3
going after those behind the deep fake
34:24.3
audio of President Ferdinand Marcos Jr.
34:27.4
U.S. President Joe Biden
34:28.8
signs a multi-billion dollar
34:30.7
aid package for Ukraine, Israel,
34:32.7
and the Indo-Pacific after
34:36.4
And Israeli Prime Minister Benjamin Netanyahu
34:38.6
condemns the ongoing
34:39.6
Palestinian protests across California,
34:42.0
the United States.
34:46.1
Trading at the Philippine Stock Exchange
34:47.9
officially kicked off this Thursday.
34:49.7
Today's opening numbers at 65.82.
34:52.4
Actually, five minutes after trade,
34:54.1
we're now up about
34:55.5
three-tenths or four-tenths of a percent
35:01.7
main index up by over
35:03.8
four-tenths of a percent,
35:06.3
that is, value so far is at
35:07.8
162 billion pesos
35:10.1
with advancers and decliners
35:11.7
at 162 billion pesos.
35:14.7
Now, what should investors do
35:16.0
next, especially amid geopolitical
35:18.2
challenges and worries on the Fed's next
35:20.0
moves? To give us guidance
35:21.8
for this week, we have with us Katrina
35:23.8
J. Dizon from AIA Investment
35:25.9
Management and Trust Corporation for a
35:29.6
bonds and even fixed income
35:31.9
instruments. Welcome to the
35:35.8
Morning. Hi, Stanley. Thank you for
35:38.0
having me. It's good to have you here. Now, we're
35:39.9
now resigned to the fact that the Banco Central
35:42.0
or even the Federal Reserve
35:44.1
is in no hurry really
35:45.9
to temper those interest rates.
35:47.9
This has affected investor appetite in
35:49.9
risky assets. What about fixed
35:51.8
income and bonds? Are you seeing
35:53.9
yields trending up higher in a
35:55.8
high interest rate environment?
35:58.3
Well, you're right, Stanley.
36:01.9
after so much anticipation for a policy,
36:04.4
you know, for policy recuts at the
36:05.9
start of the year, strong data
36:07.7
out of the U.S. seems
36:12.0
or stalled the disinflation
36:14.0
scenario for now.
36:16.3
So, here we go again.
36:20.1
our expectations. And so,
36:27.6
stalled or pushed
36:30.1
back to late 2024 or even
36:32.0
possibly to 2025,
36:34.0
the view for high
36:35.8
for longer interest rates is now back on the table.
36:40.2
on the supply side, J., see,
36:42.0
seeing corporates, you know, disheartened
36:43.8
by prohibitive borrowing rates,
36:46.2
they may be looking for other ways to raise
36:47.8
capital in lieu of, you know, regular bank
36:49.8
lending. Are you seeing more companies
36:51.9
now raising funds via bonds?
36:54.6
It's very interesting, you know,
36:56.1
despite the recent uptick in rates,
36:58.6
I still think tapping
37:00.1
the bond market is still a viable
37:02.0
option for companies. In fact,
37:03.9
we're seeing a number of
37:05.5
issuers right now. There's a healthy
37:07.8
pipeline. Well, I know that it's
37:10.0
a costlier route for
37:11.7
issuers to do this, but it gives
37:13.9
them a chance to raise funding
37:15.8
with a diverse investor base,
37:17.9
right? So, I think
37:20.0
it's not a, the current
37:21.9
interest rate environment is not a showstopper
37:24.1
given prospects of growth for
37:25.7
these companies as well.
37:27.4
Okay. Now, J., without many options,
37:29.7
you're saying currently within the fixed income
37:31.6
space, what must investors consider
37:33.7
now before stocking up on those instruments?
37:37.6
tell us what kind of risk appetite must
37:39.7
one have these days when looking into
37:41.6
bonds versus equities,
37:44.1
for instance. Okay. Yeah,
37:47.4
we all know that risk drives the
37:49.5
firms, right? Investors should be aware
37:51.7
of their risk-taking
37:52.8
capacity. How long can they invest
37:55.7
in bonds? What's the horizon
37:57.8
or tender that they're comfortable
37:59.6
to lock their money in,
38:01.8
right? While the prospect
38:03.8
of capital growth
38:04.9
is always there when you
38:07.6
sell the bonds at a higher price,
38:09.7
the probability of losses when you sell it is
38:11.6
also there. So, investors just have to
38:13.7
be aware of these risks.
38:16.4
If I can't sell this
38:17.7
bond, if I need money, will I have
38:19.7
other sources? So, diversification
38:21.6
is also key, aside
38:23.8
from being aware of your
38:28.1
Alright. There's a bit of conflict
38:29.6
there because, you know, when you talk about
38:31.7
tenors, companies that issue them
38:33.8
would want longer tenors, but investors
38:35.6
might prefer much shorter
38:37.8
timelines. What yield ranges
38:40.0
and tenors would you think is best?
38:41.6
Given investors may not want to be locked
38:45.8
Well, again, it goes
38:48.5
the investors' risk appetite.
38:51.9
If I look at the yield curve right now,
38:54.1
even if we've seen
38:55.5
yields to steepen, meaning
38:57.7
the two-and-a-ten-year
38:59.8
differential has actually
39:03.2
since the recent move in interest rates,
39:09.0
the belly, meaning the five-to-seven-year
39:11.6
and even at the ten-year
39:12.8
at closer to seven percent,
39:17.5
yeah, it all boils
39:19.6
down to how investors
39:25.6
investment requirements
39:27.3
with these outlets
39:31.4
And usually, primary issuances
39:33.8
will have different charges
39:35.0
for investors to get into.
39:38.0
There will be a three, five, seven,
39:39.6
and even a ten-year.
39:41.6
Okay. On the flip side, of course,
39:43.1
is company performance.
39:44.7
We have persisting headwinds
39:46.9
from global economic and geopolitical challenges.
39:49.5
This may temper growth
39:50.6
of many businesses. A risk
39:52.8
on the part of investors, in a way.
39:55.2
Now, what do you advise your clients?
39:57.5
What to consider when shopping
39:59.0
for fixed income? This is not just about
40:01.1
yields or tenors now, but really,
40:03.0
it's about performance and returns.
40:06.1
Right. But you know,
40:07.5
geopolitical risks
40:09.0
and even other kinds
40:11.3
of risks, black swan, will always
40:13.1
be present, right? So,
40:15.4
again, we've stressed that risk
40:17.0
drives returns, but more
40:19.2
importantly, investors
40:20.9
should be looking at long-term
40:22.9
investing, meaning it's
40:25.0
time in the market than
40:26.9
timing the market that's more
40:29.0
important, right? So,
40:30.9
with the recent move in
40:32.9
rates, I think it's a good opportunity
40:37.0
right? We've always stressed on
40:39.0
cost averaging there
40:41.3
investment holdings,
40:46.4
all your eggs in just one
40:49.1
basket, right? Diversifying
40:50.7
through, you know,
40:52.8
different tenors, different securities,
40:55.9
and different issuers.
40:57.5
And you get to be picky at
40:59.2
that, right? In terms of
41:05.4
more stable and have
41:07.2
more capacity as well.
41:08.6
Okay. And speaking of diversifying
41:11.3
the market, looking at the pandemic
41:12.6
years up to now, I'm wondering,
41:14.4
Jay, if the portfolios
41:16.7
at AIA have changed,
41:18.4
did you see growing interest in preference
41:20.4
for fixed income bonds and treasury
41:22.3
notes being the choice when it
41:24.4
comes to capital preservation as compared
41:26.4
to maybe stocks or even
41:32.5
is actually a long-term investor.
41:34.6
We were a staunch advocate
41:36.2
of long-term investing and
41:38.5
ESG investments as well.
41:40.3
Having said that,
41:41.3
you know, we have a healthy profile
41:43.3
or a strategic mix of assets in our investment
41:45.7
portfolio, whether it be bonds,
41:47.5
stocks, even real estate
41:49.5
investments, whether it be
41:51.5
private or public,
41:54.0
you know, fixed income
41:56.8
or even funds, right?
42:01.0
the pandemic, we've actually been
42:05.9
in terms of our allocation.
42:10.0
tactical allocation regulations.
42:11.3
in order to keep up with the market trends.
42:14.6
Having said that, we welcome the high interest rate environment
42:17.7
to source and issue a combination of guaranteed products
42:22.1
for our policyholders.
42:25.7
And over the past two years, we've issued funds
42:29.3
that either have dynamic asset allocation
42:32.2
and even a fund that has a regular dividend payout.
42:37.5
So, the investment acumen has not changed.
42:42.8
Okay. Now, Jay, on another topic,
42:46.0
in line with the Fund Managers Association of the Philippines' anniversary,
42:49.5
we've been speaking with members on this show for all the week,
42:52.6
and all of them have bannered gains in terms of professionalizing
42:56.8
the investment management landscape in the country.
42:59.5
Now, what are the current activities at FMAP that you're excited about?
43:04.2
Thank you for bringing that up, Stanley.
43:06.6
Thank you for bringing that up, Stanley.
43:07.0
Thank you for bringing that up, Stanley.
43:07.5
I know that my co-board trustees have already tackled on our partnership
43:14.5
with the IFC on the recently launched ESG workshops.
43:24.5
We've partnered up with the PSE.
43:27.1
There's a PSE Star Investor Day that's going to be held.
43:30.7
Yes, on May 15 and 16, where FMAP members,
43:36.9
equity analysts, will be moderating forums with different companies.
43:53.3
So, that's one, and a lot more in the pipeline.
43:56.6
A lot more maybe in the pipeline.
43:58.8
These days, government is talking a lot about improving financial inclusion numbers.
44:05.1
And aside from...
44:06.9
You know, getting the unbanked into the financial system,
44:09.5
the goal also includes encouraging more Filipinos to invest and grow their money.
44:14.1
Do you have activities at FMAP, whether current or in the future,
44:17.6
in the pipeline to support this?
44:20.6
Actually, FMAP is also an advocate of financial literacy, right?
44:25.7
And we've always believed in making sure that we cover or we disseminate investor information to the public.
44:36.9
We've held seminars publicly, as well as we've partnered with educational institutions like QP,
44:45.2
where we actually sponsor scholarships, and we even sponsor theses, you know,
44:56.4
in terms of topics about deepening the capital market, and we provide allowances type for these students.
45:06.2
So, we want to...
45:06.9
We can hit it at the fundamental side of things, basically shoring up on investor education and sharing it to the public.
45:18.7
Pretty exciting times there.
45:20.7
Jay Dizon, thank you so much.
45:22.2
This has been a good conversation.
45:23.9
Good luck with FMAP, and have a great day.
45:28.4
Thank you, Stanley.
47:00.5
We're taking a quick break now.
47:02.1
Coming up, though, South Korea's GDP grew at the fastest rate and pace in more than a decade.
47:07.8
That story and more when we come back.
47:18.8
We're back on Market Edge.
47:20.3
Time to zip through the top headlines for major business papers.
47:23.7
From Business World, a market research firm projects the Philippines sustained its positive growth momentum in the first quarter.
47:30.9
But Global Source Partner also notes the growth rate is likely to miss government's target of 6 to 7%.
47:36.9
Mainly due to El Nino and higher inflation.
47:40.8
Now, from Business Mirror, the World Bank's International Finance Corporation commits to help the Philippines reduce carbon emissions in its economic zones.
47:50.4
And from the Philippine Daily Inquirer, the Philippine Institute for Development Studies urges government to explore multilateral options to secure foreign online platforms cooperation in its bid to tax digital transactions.
48:06.9
Here's a quick look at the flash business headlines from overseas.
48:10.1
Embattled Chinese property developer Country Garden Holdings receives an approval to further delay payments on three onshore bonds, staving off its first local default for now.
48:21.5
Bloomberg reports note holders concluded voting this week to extend coupon and principal installment payments until September.
48:28.8
Country Garden already defaulted on dollar bonds last year, becoming one of the biggest cash flow fees of the real estate crisis that's rattled.
48:36.7
The U.S. Secretary of State Antony Blinken is in Shanghai for a three-day visit, pushing to resolve a raft of issues threatening the newly gained calm between the two rivals.
48:52.4
America's top diplomat will kick off his visit with a meeting with business leaders at the Chinese Financial Hub.
48:59.2
He heads next to Beijing for talks with Chinese Foreign Minister Wang Yi.
49:03.6
A meeting with President Xi Jinping also likely.
49:07.3
Meanwhile, South Korea's economy grew at the fastest pace in more than two years in the first quarter on robust exports beating estimates.
49:16.5
GDP for January to March period was 1.3% higher than the preceding three months on a seasonally adjusted basis.
49:24.0
Now this, the sharpest expansion since the fourth quarter of 2021.
49:29.1
And finally, Japanese retail giant 7&1 Holdings wants huge growth.
49:36.1
For its 7-Eleven convenience store chain globally, it is aiming to boost the global number of 7-Eleven stores by 18% to about 100,000 in six years.
49:48.3
It also wants the chain to be in 30 countries and regions up from the current 20.
49:56.9
And before we go, scientists are harnessing the power of artificial intelligence to predict the potential medicinal properties of plants.
50:03.9
The International Collaboration...
50:06.1
...of sequencing the DNA more than 9,500 flowering plants, including 800 species for the first time.
50:13.4
The data set used 1.8 billion letters of genetic codes to develop a comprehensive map of the evolutionary history of plants.
50:24.8
By cross-referencing the genetic sequences with known medicinal properties, AI can predict which unexplored plant species might hold potential for novel treatments.
50:36.1
So this is a huge mammoth task.
50:42.4
So the project I'm leading at Kew aims to address this challenge by developing an artificial intelligence approach to predict which plant species would be more likely to contain lead compounds for drug discovery.
51:04.2
Currently about 25%.
51:06.1
And that's it for the show.
51:13.7
I'm Stanley Palisada.
51:14.7
Thank you so much for watching.
51:15.8
You can listen to our interviews again on the ANC Market Edge podcast available on Spotify.
51:20.5
You can also watch highlights, recaps, and exclusive content of our shows online.
51:25.0
Subscribe to the ANC YouTube channel, like us on Facebook, and follow us on Twitter.
51:29.7
Stay safe everyone as we stay with ANC.
