00:48.1
So I think that the U.S. economy continues to perform very, very well.
00:56.3
And I think to me that was evident.
00:58.7
The headline figures...
00:59.9
Here was off a little bit, but for reasons that are peculiar and not really indicative of underlying strength.
01:09.1
The fundamentals here are in line with inflation continuing down back toward normal levels.
01:18.2
Here in Asia, the market story is different.
01:21.0
We're seeing major Asian markets trading in the green.
01:24.0
Japan's Nikkei 225 is up 0.8 percent after the Bank of Japan kept interest rates around 0%
01:29.9
in line with expectations, and Tokyo's inflation eased in April.
01:35.0
Japanese shares are also rallying even after the yen hit its weakest level in three decades
01:40.2
against the U.S. dollar on Friday.
01:42.6
The ASX 200 meanwhile closed lower, down 1.4 percent, dragged by industrial and health services stocks.
01:53.2
Let's take a look now at futures in Europe.
01:55.2
They are pointing to a mixed open with the German DAX seen to extend its losses for a third.
01:59.9
On the earnings front, L'Oreal and Total Energies are set to release their results today.
02:08.6
Stateside now, Wall Street futures are up after Microsoft and Alphabet climbed in extended trade Thursday
02:14.3
as the tech giants reported bumper earnings.
02:18.2
In focus today, we closely watched Fed inflation gauge, the PCE price index.
02:26.5
Also stateside, earnings of two Wall Street stocks.
02:29.9
Its magnificent seven shines still driven by their investments in artificial intelligence.
02:35.6
Google's parent, Alphabet, fattened its profit to $23 billion, along with revenues of $80 billion.
02:43.0
The Silicon Valley titan credits growth to its cloud computing services on its video platform YouTube
02:50.1
and on online search advertising.
02:53.7
Alphabet also announcing its first ever dividend of $0.20 per share and a $70 billion buyback.
02:59.9
Microsoft, meanwhile, topped estimates for quarterly revenue at near $62 billion.
03:07.1
Net profit was also higher as it reaped the rewards of its partnership with ChatGPT, maker of OpenAI.
03:18.0
U.S. Secretary of State Antony Blinken meets with Chinese Foreign Minister Wang Yi in Beijing.
03:23.0
The two diplomats are due to spend several hours in a closed-door meeting for talks on a range of complex issues,
03:29.9
including China's support for Russia's invasion of Ukraine, the South China Sea issue, and trade.
03:36.1
During their opening session, Wang told Blinken,
03:38.3
U.S.-China relationship has stabilized, but negative factors are persisting.
03:44.0
In response, Blinken said active diplomacy is needed to move forward with the agenda set by Presidents Biden and Xi
03:51.4
during a face-to-face meeting in November.
03:55.0
Blinken is likely to meet with Chinese President Xi Jinping today before he returns to Washington.
03:59.9
Nothing is off the table when it comes to responding to China's excess industrial capacity.
04:08.7
That statement from U.S. Treasury Janet Yellen in an interview with Reuters.
04:13.6
Yellen said the issue which Washington claims threatens producers of similar goods in other parts of the world
04:19.6
was again discussed intensively with Chinese officials in Washington on the sidelines of the spring meetings last week.
04:29.9
We're having engaging in a dialogue about balancing growth in the domestic and global economies.
04:40.8
And a long-standing theme in discussions about China is the need to support domestic demand
04:50.1
and in particular to boost consumption, not on a transitory basis, but on a...
04:59.9
An economy at its stage of development, consumer spending as a share of GDP is incredibly low in China.
05:08.7
Its savings rate is close to 45%.
05:12.3
And for an economy as large and significant as China, ending up exporting its way to full employment
05:22.7
is something that's not something that's acceptable to the rest of the world.
05:29.9
This year's Balikatan exercises between the Philippines and the U.S.
05:35.7
isn't just the biggest iteration of the war games, it's also the most complex.
05:41.3
That's according to the militaries of both countries.
05:43.9
Over 16,000 Filipino and American troops are training side-by-side using new technologies
05:50.7
that will prepare them for any possible conflict.
05:56.6
It also highlights our...
05:59.9
Training with them, with our new equipment.
06:03.9
Not only highlights our defense collaboration, but also provide a better interaction.
06:11.8
Realistic training is how you get ready for real-world operations.
06:15.6
And that's what Balikatan has become.
06:17.7
We've added in more complex operations, more of them across the entire width of the country.
06:23.9
And really that's the challenges that we face in this training is what prepares us,
06:29.9
Called upon to answer.
06:31.0
We've also incorporated in what we're calling an information warfare exercise
06:34.6
and a cyber defense exercise.
06:36.9
Because as the modern security environment changes, the military has to evolve and change with it.
06:41.6
Technology is great, but it's how you integrate it and how you work together with those things that really matters.
06:49.0
The Philippine and U.S. militaries also stress the importance of their civic work in communities
06:54.7
where the Balikatan exercises are taking place.
06:59.9
So we've got five different sites across the Philippines, two in northern Luzon, two central Luzon, and one down in Palawan,
07:08.6
where armed forces of the Philippines and U.S. service members are doing things like building schools,
07:15.0
community health centers, we're going out and doing cooperative medical engagements with the community.
07:20.7
And it's really about making a long-term investment in the relationship between the military and those local communities.
07:29.9
Beijing, meanwhile, warns the Philippines bringing in parties not involved in their maritime row
07:35.6
could only worsen the situation.
07:37.7
The Chinese Defense Ministry reiterated Thursday its opposition to what it called
07:43.3
external interference and muscle flexing in the South China Sea.
07:48.2
Beijing also says its military is closely watching the situation and vowed to respond with action.
07:57.6
Women's groups led by the Gabriela...
07:59.9
Gabriela Party List are protesting the latest Balikatan exercises between Philippine and U.S. forces.
08:06.4
They assert the war games are fueling tensions between Manila and Beijing, which are mired in a maritime dispute.
08:13.9
Gabriela also raised concerns on the reported disruption of the livelihood of Filipino fisherfolk
08:19.6
where the joint military exercises are being conducted.
08:24.0
The National Security Council earlier stated the Balikatan is not a prelude to war.
08:29.9
The Philippines and France planning to deepen their defense cooperation.
08:36.5
The two countries set to begin talks for a visiting forces agreement next month.
08:41.6
Back in December, top defense officials of the Philippines and France signed a letter of intent to boost security cooperation,
08:49.1
including a commitment to start negotiations for a VFA.
08:53.3
Such a deal would allow French forces to train with their Filipino counterparts.
08:59.9
We will have an opportunity in May to maybe start officially the negotiations or at least discuss the modalities.
09:11.1
The next meeting is May 20, May 21, so that's the perfect occasion to officially discuss the ways to negotiate the VFA.
09:26.1
The French ambassador also highlighting the role of the Philippines.
09:29.9
in maintaining regional peace and the freedom of navigation in the South China Sea.
09:59.9
In the framework of our Indo-Pacific strategy, we are both maritime country.
10:09.6
We have very strong convergence in our assessment about the dynamic within the Indo-Pacific.
10:23.2
You also, through the Indo-Pacific strategy,
10:29.9
provide options to meet the challenges posed by the growing assertiveness of China.
10:45.9
The Philippines has visiting forces agreements with the U.S. and Australia,
10:50.5
but it has been expanding defense ties with other allies as maritime tensions with China escalate.
10:57.0
It recently signed separate defense cooperation,
10:59.9
and it is also negotiating a military access pact with Japan.
11:08.4
Now here's a look at the local corporate headlines.
11:11.9
A $305 million deal is struck by the Consuni Group to acquire the Philippine unit of Mexican cement giant CEMEX.
11:20.4
The two firms announced the widely speculated deal Thursday,
11:23.7
which would see DMCI, Semirata Mining, and the KON Corporation taking over CEMEX.
11:29.9
CEMEX Holdings Philippines.
11:31.8
The transaction involves 42 million worth of common shares of CEMEX owner, Kasek,
11:37.2
which the entities expect to be finalized before the end of the year.
11:41.7
CHP shares ended yesterday's trade significantly higher by 15%.
11:47.8
Also in mergers and acquisitions,
11:50.5
Ayala Land secured shareholders' approval for the company's planned merger with its 34 entities.
11:56.9
The property developer is undertaking the merger.
11:59.7
The CEMEX Holdings Philippines is also undertaking the merger with its 34 entities.
11:59.9
It will simplify ownership structure,
12:01.9
which it hopes would lead to operational synergies and efficient funds management, among others.
12:08.0
ALI's merger plan heads next to the Securities and Exchange Commission,
12:12.5
with approval expected within the year.
12:16.5
In earnings, Philex Mining's profit down significantly in the first quarter.
12:20.7
Its core net income stood 105 million pesos from the 388 million last year.
12:27.7
Philex EBITDA also lowered by more.
12:29.9
at 295 million pesos.
12:33.6
The firm cites, among others, higher gold prices,
12:36.5
which it said provided tailwinds for its Silangan and Pancal mines.
12:42.4
Finally, Funvestland and KMC Community launched a joint venture to foray into the co-working business solutions.
12:50.1
FLI says the new entity, R-Space Solutions,
12:53.3
will cater to the growing demand for co-working spaces here at home.
12:57.0
The JV will be tasked to establish, operate, and develop flexible workspaces
13:02.3
such as private service office seats and co-working arrangements within commercial buildings.
13:12.3
To the Philippine Benchmark Index now,
13:14.5
the PSEI joins the regional rally closing at 66.28 after gaining a tenth of a percent today.
13:21.7
As for the Philippine Peso, the local currency is still hovering at the 57 level.
13:27.0
To the dollar, and is now close to touching the 58 level.
13:33.6
Christina Ulam, First Metro Investment Corporation,
13:36.2
is now on the Business Roadshow to help us assess today's trading and more stories about the economy.
13:41.0
Christina, again, welcome to the show.
13:42.8
Hello. Hi, good afternoon, Stanley. Thanks for having me.
13:46.1
All right. The 6400 level seems strong now.
13:48.8
I mean, by the looks of it, it's also been a good finish for the market as this week.
13:54.0
All things considered, global markets have been tumultuous.
13:57.1
Lately, what is the market's mood right now, Christina?
14:00.3
What are you seeing in investors today?
14:04.4
I think in recent days, we've seen investors trying to sell the rally,
14:10.6
selling on strength and apparently lightening up in favor of alternative assets.
14:16.9
We're seeing the dollar very strong, so there's appetite to accumulate dollars.
14:21.0
And then gold is also very strong, gold ETFs.
14:25.4
And of course, D.
14:27.1
The bonds, the bonds are very attractive now because of the yield peak.
14:31.2
We're seeing the 5-year and the 10-year hit new highs.
14:35.0
The 10-year likely flirting with 7%, 6.9, and the 5-year 6.8.
14:40.7
So the yield curve is like steepening and moving upward because of this higher for longer theme.
14:47.6
And the equities market a bit looking for safer haven, alternative assets,
14:54.3
and so investors trying to lighten up.
14:57.0
Hopefully, the accumulation, the start of accumulation could happen
15:01.4
because we have this April being seasonally low.
15:06.9
We're exiting April, and I think May, we're going to see recovery, sustained recovery.
15:13.2
This sell in May and go away maybe may happen towards end of May.
15:16.8
Okay, but it's still happening. What do you think?
15:20.8
Yes, of course, there is that feeling that we say is trapped within.
15:27.0
In this 6,004, 6,600, and maybe it's luggage within the next few weeks
15:32.9
because we have this geopolitical tension is still not very much contained.
15:37.8
Although the tension has eased, but anything can happen.
15:40.8
The strikes can happen, and we have this very, very strong dollar.
15:44.8
Very strong dollar higher for longer, and the peso flirting with closer to 57.80, 57.75.
15:52.9
So we have not seen this since 2022 when the volatility,
15:57.0
the volatility was higher, approaching like 59.60.
15:59.9
So it's a return to that sentiment, a bit of a cautiousness, increased cautiousness.
16:05.0
Okay, about that sentiment over the U.S. dollar and the Philippine peso,
16:08.7
what's your outlook now for local currency, which is now about to touch 58,
16:13.8
which is a bit concerning.
16:15.6
How does an extended timeline of a rate cutting by both the U.S. Fed
16:20.3
and even the BSP bode for the currency in terms of strength?
16:25.7
The weakening of the currency.
16:27.0
The currency is only a concern to the jumpy and the nervous
16:30.3
because we're not alone.
16:31.9
The entire emerging market is, even China and the yen is at a 34-year low.
16:35.7
And Japan, in fact, is in the same situation, right?
16:38.8
Yes, yes, Stanley, you're correct.
16:40.7
The yen is at a 34-year low, and the yuan cannot be helped by stimulus coming from the PBOC
16:48.4
because they cannot really embark on aggressive interest rate cutting.
16:55.1
Japan is also cannot.
16:57.0
They cannot give up on the yield curve control.
16:58.9
And all of these are part of the dynamic that weakens all the currencies versus the dollar.
17:03.8
The dollar is still really the choice of haven investors.
17:08.4
And so we're seeing weakness in the Philippine peso.
17:11.6
But it doesn't reflect any negative fundamentals,
17:15.3
any weakening of the general fundamentals of the Philippines
17:17.9
because we continue to see very positive numbers like unemployment 3.5% versus like 5% 2019.
17:25.5
And this is one of the best levels.
17:27.0
And only 1.8 million people.
17:30.1
There's been an improvement in the employment by 1.8 million increment.
17:34.6
Our PMI, SP Global PMI, factory data, factory, a measure of factory activity strength,
17:42.3
is in the ninth month of expansion, above 50.
17:46.4
And our GIR, Gross International Reserves, is still at 101 billion and very much closely watched by the BSP.
17:53.1
Our GDP forecast, in fact, in First Metro is going to be 6%.
17:57.0
Or even 6.1% in the first quarter.
17:60.0
And look at corporate earnings.
18:01.8
BPI and BDO are all growing in double-digit.
18:05.3
And I think they're guiding for, the CEOs are guiding for like a double-digit growth in loans.
18:11.2
So those are all very positive for the currency.
18:15.3
In fact, the volatility of the currency is one of the lowest now.
18:18.5
It's just 0.27 in terms of standard deviation compared to the 2022 level.
18:27.0
59.90 when we had like two times the standard deviation.
18:30.9
And in 2018, when we have like one in terms of the SD.
18:35.1
Now, it's very low.
18:37.9
I think this is just a product really of the U.S. Hire for Longer team.
18:43.5
The one-rate cut.
18:47.5
From three-rate cuts, it's now down to one-rate.
18:50.6
It's just a product.
18:52.0
A minor hiccup, really.
18:54.1
Let's go through some of our corporate stories now, Christina.
18:57.0
Oceana Gold's IPO, which might be exciting to some investors in the coming week.
19:02.7
It comes at a time when gold is seeing highs.
19:05.1
Oceana said to also be offering good dividends as a company,
19:08.5
which may offer some caution against extreme market price volatility.
19:12.8
Is there appetite now for such a stock,
19:14.8
which may be one of just a few listings that we are going to experience at the PSE this year?
19:21.4
I think the timing is in terms of the team,
19:24.4
like a haven asset, gold alternative asset,
19:27.0
I think in terms of the timing, it's good.
19:30.6
It happens at this time of a very strong gold price rally.
19:34.4
But the local context is very weak.
19:38.7
The risk appetite towards risk assets is very weak right now.
19:42.8
So there should be appetite in terms of the team,
19:46.7
but in terms of the liquidity of the overall market and the daily value turnover and risk appetite,
19:53.5
it comes at a time when it seems to be at its weakest.
19:57.1
After a very strong rally in the first quarter,
19:59.9
and on the second quarter, this was weak,
20:02.6
the IPO should have, in hindsight, this is all in hindsight,
20:05.4
the IPO should have happened in the first quarter.
20:09.1
But towards year-end, I think there's a very good chance of it benefiting from the overall market strength.
20:16.7
And even in the intermittent rallies that we will be seeing towards the approach of the rate-cutting exercise towards year-end.
20:25.3
All right, here's another one.
20:27.0
The production of Cemex by DMC, SEC, DMC, and Dakon at 89%, that's total company.
20:32.9
Now, how do you think this will benefit the businesses involved?
20:36.9
I think very wise move by the Consul.
20:39.4
He's because this ensures that the supply chain of cement for the Consul he grew for the DMCI group,
20:47.6
which is a construction, very active construction business,
20:50.7
and also a very strong exposure to infrastructure.
20:54.6
They're bidding in government projects.
20:57.1
This very important input, which is cement.
20:59.3
I think it makes them very resilient against supply disruption when it comes to a very important input to their core business.
21:06.3
They're also into civil works for Manila.
21:08.6
They are a part owner of Manila, which will require a lot of sewerage projects and then more connections and also Semirara mining.
21:18.6
All the future projects and initiatives in infra, I think this is one key booster as far as the competitive edge is concerned.
21:26.8
So it's really, really a wise move.
21:28.5
But I think they will be looking into the technology of Cemex to make it more maybe on par with the requirements of the current trends in construction.
21:40.7
All right, step in the right direction for the Consul group.
21:43.4
What about Ayala Land now?
21:44.7
It's getting shareholders nod for planned mergers with dozens of entities, its own entities, in fact, to simplify ownership structures and improve synergies.
21:53.9
Are you expecting more M&As this year?
21:56.8
And the consolidations might be a way to improve the earnings numbers as well.
22:02.4
It's already happening.
22:04.9
The Consul, the MCI acquisition of the Cemex cement and then we have this recent one by Ayala.
22:16.2
I think they're trying to simplify the entire business model and they're trying to save up on energies and efforts that go into reporting requirements.
22:26.8
Removing all the facts within the business structure.
22:30.3
I think that's the main goal is efficiency, simplification and trying to focus on make all the indicators of profitability more visible.
22:41.0
Because if you have so many subsidiaries, so many affiliates, then it becomes very convoluted and hard to really assess where the growth and the strategies are to be placed, which one is making contributing more profits than the other.
22:55.9
So I think this is going.
22:56.8
I think this is going to be crystallizing and making it very visible for Ayala management to see future growth and then the direction overall of the company.
23:06.5
I think they're very bullish, actually, like 16% growth in capital expenditure.
23:11.2
So the upmarket for property is really very strong in the Philippines, although Ali, of course, is one among the many property companies that remain sensitive to interest rate movements, mortgage deals.
23:24.9
But but their orientation towards.
23:26.6
the high end has made it
23:30.4
sensitive really to the cost of
23:32.4
financing. So very strong
23:34.4
earnings there also for Ali last
23:36.5
year. Alright, lastly, Christina, you already
23:38.8
described May, what it
23:40.6
will look in the next couple of months. Let's look
23:42.5
back now because we know for a fact that everything
23:44.5
is 2020 in hindsight.
23:47.0
What is your assessment? How
23:48.5
is the ride was in the first three
23:50.4
months of the year for this market?
23:54.1
any other year where we are
23:56.4
seeing a very strong
23:58.0
PCE rebound usually
24:00.3
in the first quarter in
24:02.2
January. There is that optimizing
24:04.3
that is prevailing in the minds
24:06.3
of investors and then the Chinese
24:08.0
New Year. All of these are helping to
24:10.3
really buoy the PCE usually
24:12.3
in the first quarter. But as
24:14.3
soon as we get, and of course the inflation
24:16.3
picture helped. We saw the
24:20.3
And then there's this optimism also
24:22.2
in the US that there will be like more than
24:24.4
100 basis points.
24:28.0
have reversed. All of this
24:29.8
expectation and we have reversed and we have a third
24:32.0
war, another layer of
24:34.0
uncertainty, Israel-Iran.
24:36.4
So this is not just a war
24:37.7
between Israel and proxy
24:40.2
terror groups. So it's
24:41.9
a war between two nations already
24:43.9
and that really sent
24:45.7
shockwaves to the market. And so you have
24:47.9
this knee-jerk reaction of a sell-down.
24:49.9
But I'm very optimistic we're going to be climbing
24:51.9
back to 7,000 once the
24:53.9
rate-cutting stimulus
24:55.0
gets into the picture
24:57.1
again. It's just that inflation is very
24:58.9
sticky for now and
25:00.2
higher for longer is the theme.
25:03.6
Alright. On that note,
25:04.9
Christina Ulang again, thank you so much for those
25:06.9
insights here on the Business Roadshow. We hope
25:09.0
to talk to you again soon about markets.
25:11.5
Have a great weekend. Thanks, Tati.
25:13.2
Alright. You too. Bye-bye.
25:15.3
We're stepping aside now for a short
25:16.9
break, but stick around because when we return
25:19.1
we talk to an environmental group about
25:21.0
a proposal to remove the moratorium
25:23.0
on the construction of coal-fired power
25:24.8
plants. Stay with us.
25:28.9
The camp of Cagayan Governor Manuel
25:30.9
Mamba set to appeal his
25:32.7
disqualification before the
25:34.7
Cominec en Banque as early as
25:36.9
today. The Philippine Poll Body's
25:39.0
First Division disqualified the Governor
25:40.8
for releasing public funds
25:42.4
during the 2022 campaign period.
25:45.5
Mamba reportedly used these
25:46.8
funds during his campaign to provide
25:48.8
financial aid, scholarship
25:50.6
grants, and vehicles to his constituents.
25:53.7
His position will be
25:54.8
automatically filed by the
25:56.5
Vice Governor. Automatically filled
25:58.8
by the Vice Governor. His camp is confident
26:01.0
they have a strong case to overturn
26:03.0
the disqualification.
26:07.9
Yung mga kasong yan, may kaugnayan
26:09.7
yan sa mga social service funds
26:11.9
noong panahon ng pandemic pa halos
26:13.8
na yan ipinamahagi
26:16.0
ni Governor Mamba
26:17.4
noong bago mag-eleksyon.
26:22.5
ng Cominec ngayon,
26:24.8
labag sa batas kasi wala
26:26.8
naman yung Certificate of Exemption.
26:28.8
Kasi bago kang magbigay ng ganyan mga
26:30.6
social service funds,
26:32.5
ay dapat merong exemption sa Cominec.
26:35.6
Bago naman yan ibinigay
26:36.9
ng Governor Mamba o ng kanyang
26:38.8
mga tauhan, yan ay humingi na sila,
26:41.1
nag-file na sila ng application for
26:42.7
exception. Hindi nga lamang kagad
26:46.1
exemption na yan.
26:48.6
Kaya, anong nangyari?
26:50.8
Pinamahagi na rin yung mga social service
26:52.7
funds. Ayun ang nais namin ipunto.
26:54.8
sa Cominec and Bank
26:56.8
na yung exemption na hinihingi
26:59.4
namin ay naprovulgate
27:01.1
na bago maghalalaan.
27:05.3
President Marcos attends
27:06.8
the inauguration of the Batangas
27:08.8
Passenger Terminal Building.
27:10.9
Our correspondent, Pia Gucheres, joins
27:12.8
us on the line with the details. Hi, Pia.
27:17.2
President Ferdinand Marcos Jr.
27:18.9
on Friday led the inauguration
27:20.7
of the new and improved
27:22.3
Passenger Terminal Building of the Port of
27:24.8
Batangas here in Batangas City.
27:27.1
The new one-level, 1.5
27:29.1
hectare facility is considered
27:30.8
the biggest, busiest, and
27:32.8
most modern passenger building
27:34.5
in all the ports managed by the
27:36.8
Philippine Port Authority. It
27:38.6
significantly increases the capacity of the
27:40.8
terminal to 12.8 million passengers
27:43.1
annually from the previous
27:44.7
4 million passengers per year.
27:47.2
That's a capacity of around
27:48.7
8,000 passengers daily
27:50.5
up from the previous number of only
27:52.6
2,500 passengers per
27:54.6
day. The terminal also boasts
27:56.6
of amenities such as
27:58.3
fully air-conditioned lounges,
28:00.9
food kiosks, a prayer room,
28:03.0
breastfeeding room, as well as
28:04.7
facilities for the elderly and persons
28:06.7
with disabilities. The building also
28:08.8
has baggage, x-ray machines,
28:11.2
walk-through metal detectors, and
28:12.8
extensive CCTV coverage.
28:15.2
As a major transportation
28:16.6
hub connecting mainland Luzon to
28:18.7
Mimaropa, Iloilo,
28:20.7
Negro Cebu, and Mindanao, President
28:22.4
Marcos Jr. says the Batangas Port,
28:24.6
plays a crucial role in the
28:26.5
development of the country's economy,
28:28.7
particularly in the business, tourism,
28:30.7
and agricultural sectors.
28:32.5
That's why he says the country's economic
28:34.2
planners have underscored the importance
28:36.2
of the continuous expansion of
28:38.5
the port to support the country's
28:40.4
economic transformation.
28:43.5
The President says
28:44.4
maximizing the port of Batangas helps
28:46.6
in decongesting Manila ports,
28:48.6
resulting to the dispersal of economic
28:50.7
activities to other places in the country.
28:53.3
Planning for the Batangas
28:54.5
Terminal modernization began in
28:56.2
2020, with construction
28:58.2
commencing in 2021, despite
29:00.5
the pandemic. Phase 1 of the development
29:02.6
was completed in 2022,
29:04.8
while Phase 2 was completed in
29:06.5
the first quarter of 2024.
29:08.8
Denise? Thanks for that, Pia.
29:14.4
Secretary has called for the lifting
29:16.3
of the moratorium on the construction of
29:18.3
coal-fired power plants.
29:20.5
In 2020, the Duterte administration
29:22.6
banned new applications for such
29:24.2
plans. But Jericho Petilia
29:26.1
suggests instead of a ban,
29:28.2
the country could impose emission standards
29:30.3
to mitigate coal's environmental
29:32.0
impacts. Now the question is,
29:34.3
is it time to lift the ban?
29:36.4
Joining us now on the show to discuss
29:38.4
that is Kevin Yu of Greenpeace
29:40.3
Philippines. Hi, Kevin. Welcome to the Business Roadshow.
29:44.2
Thank you for inviting us.
29:46.1
Alright. I'll talk about the coal-fired
29:48.4
power plants in a bit.
29:50.1
I want to go macro now.
29:52.6
First, power supply challenge.
29:54.2
Now reviving more options to
29:56.3
improve the energy mix.
29:58.5
One of the proposals of late
30:00.4
is nuclear power, which
30:02.3
is said to be a better option when it comes
30:04.2
to costs of power as well as
30:05.9
reliability. What does that mean
30:08.1
for Greenpeace? What does the group stand on this?
30:12.4
is one of the bad
30:14.0
and worst options for the
30:16.2
Philippines, considering that
30:17.6
we have better options and
30:20.2
considered assets in our
30:22.2
country, which is more cheaper.
30:25.5
included in utilizing
30:27.8
nuclear energy. And we already
30:29.9
have the expertise in utilizing
30:31.7
renewable energy. And that should be
30:33.6
the priority. And we are already
30:36.0
utilizing it. Nuclear as
30:38.0
an energy within the region is not yet
30:39.9
fully utilized. And they are introducing
30:43.7
to us. These are the small
30:45.9
modular reactors that have not yet
30:47.9
been operational at a
30:49.7
commercial scale globally. So
30:51.9
if that is approved here in our
30:54.0
country, that means that we will be one of
30:56.1
the first country who will use this
30:57.6
that will also face
31:01.5
possible catastrophe
31:03.7
involved in these kinds of technology. So this
31:06.0
is a false solution for us and should not
31:07.9
be entertained. Alright, now some senators
31:10.1
are already calling for a review first
31:12.1
of the nuclear mix
31:14.0
energy proposal to make sure
31:16.1
safety nets of course are in place.
31:18.4
They are saying we cannot adopt
31:20.1
the technology unless acceptable
31:22.2
standards are present. Now, what
31:24.1
is your message to our lawmakers regarding
31:28.1
pursue the nuclear option?
31:33.0
our effort and our resources
31:35.9
going to be a waste
31:37.8
in really focusing and
31:39.4
developing the safeguards in
31:41.8
utilizing nuclear energy.
31:43.4
It will cost us a lot
31:45.6
in providing the proper
31:47.5
safeguards in utilizing conventional
31:49.8
nuclear technology.
31:51.8
What more for new
31:53.4
technologies that have not yet been
31:58.0
So this is a very risky
31:59.4
endeavor for us and
32:01.8
we also understand
32:05.8
have a recommendation that
32:07.1
utilization of nuclear energy is a long-term
32:10.0
game. It will take us
32:11.2
decades and centuries of commitment
32:14.0
for us to really ensure
32:15.9
that we are following
32:18.0
international standards. It's
32:19.9
something that is not
32:21.8
guaranteed in our case, unfortunately,
32:24.2
because we've seen that
32:31.4
operating power plants
32:33.3
is not really good. And it can be seen right now.
32:36.4
The reason why we're
32:37.6
having yellow and red
32:39.7
alerts right now is as
32:41.4
we understand that the whole power plants
32:43.6
that are being operated here are not
32:47.9
properly and they're having some problems
32:50.0
due to the extreme heats.
32:51.8
You know, even before El Nino,
32:53.5
in the time of the pandemic,
32:55.5
there were already faults and
32:57.5
unscheduled maintenance. What more
32:59.5
if we are operating nuclear power plants?
33:01.3
I don't think it will only be
33:03.0
a lack of energy, but also
33:05.5
nuclear environmental risk involved in this
33:07.5
technology. So it should not be entertained.
33:10.1
Yeah, you're saying, you know, we have
33:12.1
to have a longer timeline when it comes to nuclear
33:14.3
energy, but government is also saying,
33:16.8
or at least some sectors are saying, there
33:18.8
are low-hanging fruits here. Former Energy
33:21.4
Secretary Jericho Petilia is thinking of,
33:24.0
you know, it might be good to lift finally
33:27.5
the moratorium on the construction of coal-fired
33:30.3
power plants as an important move to improve
33:32.9
the country's power supply here and now.
33:36.2
That's immediately given the urgency of the
33:38.2
situation, the power supply problems that we're
33:41.1
experiencing. What do you make of this proposal
33:43.2
now? Do you agree that the moratorium should be
33:47.9
The reason why the moratorium was
33:51.4
lifted in the first place is the problems
33:53.9
involved in utilizing coal power plants. So the
33:57.2
idea of expanding the utilization of a coal power
34:02.8
plant, again, given the same circumstances
34:05.7
with worse conditions, due to the reason that we
34:09.1
have El Niño right now, it's not the right way
34:12.8
to go. Actually, the opposite should happen. We
34:15.6
should maintain the coal moratorium and strictly
34:21.4
provisions, because we understand that there
34:24.2
are some challenges right now in really identifying
34:28.4
what is captured by the coal moratorium and what
34:32.3
is it. And there should be a phase-out plan already
34:37.4
for existing coal power plants. And I think that
34:40.2
should be the priority right now, because we know
34:43.3
that these kinds of technologies, particularly
34:46.1
coal, are not really reliable during times of, you
34:51.4
know, extreme weather occurrences, as we've seen
34:55.2
right now. So the coal phase-out plan should be the
34:58.7
next step, and eventually looking into the transition
35:02.0
towards renewable energy.
35:03.7
All right. Kevin, let's walk through some of the
35:06.1
issues also involving Greenpeace, a lot of
35:09.4
environmental issues here. One of which, of course, is
35:11.9
the landmark climate inquiry in the Philippines,
35:14.1
recently found that Shell willfully concealed the
35:16.7
fact that their activities have led to significant
35:19.5
harm to the environment and the climate system.
35:21.4
You've been fighting this. Are you gaining ground?
35:24.5
Yes. So one of the hallmarks of our effort is that
35:30.8
we finally were able to have the recommendation of
35:35.2
the Commission on Human Rights. So it took us seven
35:37.8
years to finally have this report. This is the
35:42.6
National Inquiry on Climate Change. And although it
35:45.6
was filed in the Commission on Human Rights, it paved
35:48.6
way to succeeding in the climate reform and the
35:51.4
success of litigation cases globally. So the impact
35:56.9
that we had here is not only in the Philippines, but
35:59.2
globally. And that shows that there can be attribution
36:02.8
for the climate impacts, for our suffering for the
36:06.1
climate crisis, to these big oil companies.
36:09.7
All right. And here's another one. What do you want
36:12.2
the Marcos administration to do to address the power
36:14.6
laws without damaging the environment? You were
36:17.2
mentioning that nuclear power, coal, steps in the wrong
36:21.4
direction. What should they do addressing the power
36:25.4
shortage and still responding to this crisis with
36:30.5
So we believe that the majority of the installed
36:34.1
capacity that was mentioned by DOE, they mentioned
36:37.2
that there's around 4,000 megawatts and that will
36:41.4
be operational for this year. The majority of this
36:45.5
are still fossil fuel based. Some are coal and some
36:51.4
We believe that the Marcos government should focus in
36:55.7
utilizing our assets, which is already here. These are
36:59.1
renewable energy. And the targets, unfortunately, are not
37:02.7
high enough to really make a dent in this continuous energy
37:08.9
insecurity. So we demand, actually, that the government
37:13.1
increase the targets for renewable energy in the country
37:16.4
by extending the 50 percent target of renewable energy
37:21.4
by 2030 to beyond, around to 70 or 100 percent. And there
37:25.7
are studies already showing that this is possible, even with
37:29.7
the right political intention from the government.
37:35.0
All right. Lastly, and very briefly, what is your stand
37:37.7
on calls for the resignation of Environment Secretary
37:39.9
Tony Yulo Loizaga? Is that with or without merit?
37:44.9
We understand that there are some concerns, but there
37:48.8
should be a thorough dialogue in terms of
37:51.4
reaching out to the government. And we do believe that
37:54.1
more can be done from the part of the DNR. But this is a sign
38:00.6
that they should do more. Listen to the people and heed
38:04.4
to their demands and their struggle.
38:08.3
All right. Kevin Yu, Greenpeace Philippines campaigner,
38:11.1
thank you so much for joining us today. Happy weekend.
38:13.5
Thank you, Stanley.
38:15.1
Let's take a look now at the alert status of major power
38:18.0
grids in the Philippines. National Grid Operator NGCP says
38:21.0
Luzon was placed on yellow alert at 1 in the afternoon
38:24.4
and will remain so until 5 p.m. It will be under yellow
38:27.8
alert again later at 7 p.m. to 10 p.m. The Visayas grid,
38:32.3
meanwhile, will be under a red alert status from 3 p.m.
38:35.6
to 4. It will also be put on yellow alert for most parts
38:38.8
of the afternoon. As for Mindanao's power grid, it was
38:42.0
on yellow alert from 1 p.m. to 3.
38:48.7
Philippine Senator Sherwin Gatchalian,
38:51.0
calling for an investigation into power plant operators
38:54.5
that repeatedly failed to operate amid an energy supply
38:58.4
shortage. Gatchalian said Thursday, 47 power plants
39:02.3
will come to force outages, sparking concerns about
39:05.5
potential rotational brownouts nationwide.
39:11.1
Importante ma-imbestigahan mabuti ito ng Energy Regulatory
39:15.1
Commission ng ERC dahil mahigpit ang ERC sa
39:19.9
international grid.
39:21.0
Ito ang tinatawag nating reliability ng ating mga
39:24.7
planta. Kung matatandaan natin, nung ilan taon ng nakaraan,
39:28.8
ang ERC pinamulta yung ilan sa mga planta dahil lumampas
39:32.4
nga sila doon sa tinatawag nating reliability index.
39:36.2
So ang ibig sabihin nito, dapat yung pananugutan, yung
39:40.8
accountability ng planta na dapat i-maintain nila, dapat may
39:45.4
spare parts sila, dapat kompleto sila sa mga pagkukumpuni
39:51.0
Dahil kung pumalyaman lang, dapat mabilis na bumalik.
39:58.2
Meanwhile, Senator Rafi Tulfo, chairperson of the Senate Committee
40:02.0
on Energy, has filed a resolution seeking a probe on the power
40:06.6
supply woes in the country. He says proper interventions must
40:10.6
be taken to ensure enough power supply and prevent more
40:16.8
We're going on another quick break. Stay with ANC.
40:21.0
Welcome back to the show. The Philippine Government's El Nino Task Force has reported 103 cities and municipalities are now under states of calamity because of the prolonged dry spell. We talk about that and more with Joey Villarama of Government's Task Force El Nino. Hi, Joey. Good to have you on the Business Roadshow.
40:47.0
Good afternoon, Denise. Thanks for having me.
40:51.0
Now, Joey, we've seen reports, we've
40:53.4
read the reports of crop damage
40:55.3
reaching 3.9 billion pesos
40:57.4
and just now over
40:59.0
103 municipalities and cities
41:01.1
declared under a state of calamity.
41:03.4
I mean, can you give us a
41:05.1
more specific update on the most
41:07.2
severely affected areas
41:08.8
and also the estimated
41:11.0
number of families that were impacted
41:15.7
Actually, I'm adding
41:17.1
two more municipalities to your list,
41:19.1
Denise. So as of 6am.
41:21.0
Based on the report of the Office of Civil Defense, there are now 105 municipalities that have declared a state of calamity.
41:29.2
In terms of provinces, there are five entire provinces that have declared the same.
41:35.4
So that's Occidental Mindoro, which the President visited a few days ago.
41:39.9
And then there's Antique, Sultan Kudarat, Basilan, and Maguindanao del Sur.
41:47.2
So in terms of the number of farmers, there are about 75,000 farmers and fisher folk that are affected, and then about 2.2 million individuals.
41:58.2
So that's not just the farmers and the fisher folk, but also their dependents that have been affected, spread across 105 cities and municipalities.
42:09.5
So the government, again, is not just focusing on agricultural damage,
42:15.3
but in helping all those.
42:17.2
Individuals that are affected by this dry spell.
42:20.8
Aside from the agricultural disruptions, the farmers and their families, are there also other reports of water shortages and disruptions in the agricultural production?
42:32.7
How has this impacted the provinces and their capabilities to usually be able to sell and how it has impacted the local economy?
42:43.4
Most of the municipalities that declared a state of calamity.
42:47.2
Did so because of agricultural damage, but about a handful, maybe 13 municipalities or cities declared state of calamity because of lack of water or water crisis in terms of how the El Nino phenomenon has affected the state of agriculture.
43:07.9
Obviously, we've seen the figures 3.94 billion pesos in damage and losses, but I'd like to emphasize or would like to emphasize that.
43:16.8
Even if there's a specific area or a big area covered in terms of damage and losses, that's actually 66,000 hectares on 78% of that area still has recoverable or salvageable produce.
43:32.3
So I understand some farmers are having difficulty selling their produce or some have no yield at all in terms of how the government is helping them, supposing the farmers in Benguet can no longer sell their lettuce.
43:46.3
Their string beans and their tomatoes.
43:49.0
So there's such a thing as market matching by the Department of Agriculture.
43:52.8
So the local producers can be able to sell their produce.
43:58.7
Also, there's the Padiwa ng Pangulo Caravan, which brings the produce of the farmers straight from the market to the consumer.
44:08.1
So those are among the measures that are being implemented by the government to help the farmers sell their produce.
44:15.1
Given this difficulty.
44:16.3
Let's go to the other side.
44:19.2
There is an overproduction and I guess, you know, now they are those concerns are addressed.
44:24.7
But how about the other concerns about price hikes for some agricultural products due to El Nino's impact on production?
44:32.1
How is that being addressed?
44:34.6
The Department of Agriculture and the Department of Trade and Industry are closely monitoring the prices of basic commodities.
44:42.9
So as we know, in the areas that have declared a sale.
44:47.1
There is an automatic price freeze for 60 days.
44:51.7
So nobody, no merchandiser or seller can increase the prices of basic commodities for that period.
44:59.5
But I understand that in some areas, even from the data of the Department of Agriculture and the Philippine Statistics Authority,
45:08.3
that in some areas, prices of palay or rice have increased.
45:13.7
But again, the Department of Agriculture..
45:16.3
is saying that at this time, there should be no significant increase
45:21.2
and that any increase or unscrupulous increase or taking advantage of the situation
45:29.1
will be dealt with by the Department of Trade and Industry.
45:32.4
So I'd like to add that for now, the supply of food, particularly rice, is stable, is sufficient,
45:40.8
and we're actually expecting an augmentation in the yield
45:46.4
because of the ongoing harvesting season from the last cropping season.
45:50.9
So there should be no cause for alarm,
45:53.3
and there should be no big hikes in the prices of basic commodities
45:57.8
because the supply of these basic commodities are still stable.
46:03.4
And we started our interview already with such bad news.
46:07.8
From the $103, there are 105 municipalities.
46:11.2
So Joe, you have to forgive me for asking.
46:13.1
I mean, with El Nino persisting, are there concerns that the situation could worsen?
46:19.2
We still have about five weeks to go before the anticipated dissipation of the El Nino climate pattern.
46:29.6
So we're hoping that the condition will shift to neutral conditions
46:33.7
before shifting to La Nina, which is obviously another problem.
46:39.2
So given the situation...
46:40.8
Given the situation now when we're experiencing extreme heat,
46:44.4
obviously there is expectation that there will still be damage to agriculture,
46:48.7
there will still be impact to the health of the population,
46:52.2
and there might be problems with water supply.
46:57.1
And as you discussed with your guests before, there might be problems with electricity.
47:02.9
But we would like to assure the Philippines that we and the government are doing everything we can.
47:10.8
To help stave off the effects of El Nino.
47:14.8
And hopefully, by the end of May, we can see through the worst of what El Nino has to offer or to give
47:26.2
in terms of the damage and the impact of the extreme heat.
47:31.0
I mean, this year is the worst yet.
47:32.9
So beyond immediate relief, I mean, also with climate change, a lot of us are expecting this.
47:37.2
This could be the hottest one yet for this year.
47:40.1
But who knows what next year holds.
47:42.3
So what longer-term plans are in place to mitigate future El Nino events,
47:46.7
especially knowing that there also is La Nina,
47:49.0
that the administration in the country is still trying to find a solution to?
47:54.5
Many, obviously, the focus now is on how to mitigate the effects of El Nino.
48:01.0
But most of the programs that are being set in place have to do with long-term goals by the Marcos administration.
48:10.1
For example, in terms of food security, obviously, the president said,
48:14.4
okay, we should increase our irrigation systems.
48:17.8
We should put up more food storage facilities or cold storage facilities.
48:23.1
We should build more high dams.
48:25.0
So those are the solutions being proposed now during the time of El Nino.
48:30.6
But obviously, that's also for the long term.
48:33.3
So El Nino recurs every two to seven years.
48:36.8
And based on a recent report,
48:40.1
it may increase or it may become more frequent,
48:43.6
not just between two to seven years, but more frequent.
48:47.2
So we might see incidences or occurrences of dry spelt or droughts more frequently.
48:53.4
So in terms of what the government is doing now,
48:56.3
in terms of the long-term solutions or projects,
49:00.2
as I mentioned, there will be more silos to store food.
49:04.3
Irrigation systems will be put up.
49:06.8
And then there's the high dams for water.
49:10.1
And then there's the high dams for water impounding or the collection of water
49:13.5
to help ensure that we have water security and proper water management
49:19.6
when El Nino recurs, not just El Nino, but when the regular summer season occurs.
49:26.0
And lastly, is there a way for the public to get involved in assisting affected areas?
49:31.6
You know, whether it's volunteering, donations, or water conservation efforts,
49:36.6
how can Filipinos contribute to this recovery process?
49:40.1
In terms of directly contributing,
49:43.3
obviously, small gestures like conserving water at home,
49:48.7
turning off lights when you're not in a room,
49:51.7
those are small things that can have a big impact
49:54.5
in helping save our limited resources,
49:58.8
meaning water and electricity and even food.
50:01.8
But in terms of how you can help report a specific situation in your area,
50:08.2
there is a website called,
50:10.1
the El Nino Online Platform,
50:13.3
El Nino Southern Oscillation Platform.
50:15.7
That's enop.ndrrnc.gov.ph.
50:21.1
If you'd like to report a specific situation or problem in your area,
50:25.9
including far-flung areas,
50:27.5
there's a QR code at the bottom of that website.
50:30.8
And then you can report to the government,
50:33.2
and the government, like Department of Agriculture, DSWD,
50:37.5
will be able to assist you.
50:40.1
And look into your particular problem.
50:42.9
Spokesperson of the Philippine Task Force, El Nino Asek,
50:45.8
Joey Villarama Asek, thank you so much for joining us.
50:49.6
Thank you very much, Denise.
50:51.8
More news, passenger ferry firm Tugo launches the latest member of its fleet
50:56.7
as it sees bullish growth in sea travel this year.
51:00.3
Lady Vicencio joins us now with that story.
51:06.1
Demand for sea travel is expected to grow this year according to freight.
51:10.1
And passenger operator Tugo, as it further expands its fleet
51:13.5
of roll-on, roll-off passenger or rope-packed vessels.
51:17.3
It launched the MV Matigla set to travel to tourist destinations
51:21.3
and high-trade routes, including Iloilo, Bacolod, and Cagayan.
51:25.6
The renovated vessel from Japan currently has a passenger load of 400 passengers,
51:30.4
but the company is looking to make more developments
51:33.7
to almost double its carrying capacity to 700 passengers.
51:38.4
The launch of the vessel was led,
51:40.1
by First Lady Liza Araneta Marcos.
51:43.3
MV Matigla is Tugo's fourth vessel in its transportation and logistics fleet.
51:49.0
A fifth vessel is set to make its maiden voyage this year
51:52.5
as a boom in sea travel, particularly for leisure,
51:55.5
is expected this year according to SM Investments Vice Chairperson Teresita C. Coson.
52:02.3
Tugo Group is part of SM Investments Corporation.
52:05.9
Meanwhile, Tugo Chief Financial Officer Will Howell also expects the company
52:10.1
to grow further with its investment in its fleet,
52:13.2
particularly for its southbound routes in the Visayas and Mindanao region.
52:19.7
Thanks for that, lady.
52:23.1
And before we go,
52:24.0
Philippine regions continued to record growth in 2023.
52:27.2
Our numbers that matter this Friday,
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7.3% the statistics authority says.
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This was the growth rate in central Visayas last year,
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the fastest in the country.
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Western Visayas follows in,
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along with Ilocos region.
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Nakaraga and Bagsamoro regions, meanwhile,
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saw the lowest growth rates below the national average of 5.5%.
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Statistics officials say the capital region contributed the most
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in the services sector,
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Calabarzon in industry,
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and Centro Luzon in agriculture and fishing.
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And those are the latest in all things business.
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You can watch highlights, recaps,
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and exclusive content of our shows online.
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And I'm Stanley Palisada.
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Subscribe to the ANC YouTube channel,
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and follow us on Twitter.
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Join us again on Monday for another edition of the Business Roadshow.
