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BAIPHIL MARKETWATCH

24 Jan

2017

Legend Improvement / Up Deterioration / Down No Movement

FINANCIAL MARKETS AT A GLANCE

PHILIPPINES

Financial Rates Current Previous

USD/PHP 49.8700 49.9200

30-D PDST-R1 2.0214% 2.0304%

91-D PDST-R1 2.0233% 1.7500%

180-D PDST-R1 2.4196% 2.4286%

1-Y PDST-R1 2.2245% 2.6875%

10-Y PDST-R1 5.0625% 4.9071%

30-D PDST-R2 2.0214% 2.0304%

91-D PDST-R2 2.0233% 1.8381%

180-D PDST-R2 2.4196% 2.4286%

1-Y PDST-R2 2.2371% 2.6875%

10-Y PDST-R2 4.4112% 4.3975%

Stock Index Current Previous

PSEi 7,374.35 7,232.66

Market Cap (Php Trillion) 12.471 12.301

Total Value (Php Billion) 5.608 5.694

PSEi Performers Closing % Change

Top Gainers

SSI Group Inc 2.77 7.78%

Calata Corporation 2.91 5.82%

Waterfront Philippines 0.37 5.71%

Top Losers

Imperial Resources 115.00 - 8.00%

The Philidrill Corp 0.01 - 7.69%

Manila Mining Corp “A” 0.01 - 7.69

ASIA-PACIFIC

Stock Index Current Previous

NIKKEI 18,891.02 19,137.91

HANG SENG 22,901.89 22,885.91

SHANGHAI 3,136.77 3,122.83

STRAITS Closed 3011.08

SET 1,568.55 1,562.99

JAKARTA 5,260.17 5,254.31

Currency Exchange Current Previous

USD/JPY 113.4000 114.9000

USD/HKD 7.7569 7.7583

USD/CNY 6.8575 6.8729

USD/SGD Closed 1.4289

USD/THB 35.2900 35.4200

USD/IDR 13,349.00 13,375.00

REST OF THE WORLD

Stock Index Current Previous

FTSEuro First 300 1,425.49 1,432.37

FTSE 100 7,151.18 7,198.44

DAX 11,545.75 11,630.13

CAC 40 4,821.41 4,850.67

DOW JONES 19,799.85 19,827.25

S&P 500 2,265.20 2,271.31

NASDAQ 5,552.94 5,555.33

Various Current Previous

EUR/USD 1.0761 1.0694

GBP/USD 1.2520 1.2372

Gold Spot (USD/oz) 1,219.00 1,210.00

Brent Crude(USD/bbl) 55.37 55.49

3-M US Treasury Yield 0.47% 0.48%

10-Y US Treasury Yield 2.40% 2.47%

30-Y US Treasury Yield 2.99% 3.05%

PHILIPPINES

The Philippine peso strengthened, along with other Asian currencies, against the Dollar as investors were disappointed follow ing Trump’s inauguration’s failure to provide more clarity on his policies. The USD/PHP fell by -0.10%, closing at 49.87.

In the local fixed income market, prices of government securities corrected as yields went up ahead of the auction tomorrow. Yields rose by an average of 6.49 bps.

Economists see a faster uptick in inflation this year on the back of expectations of a weaker peso as well as further interest rate hikes of the US Federal Reserve, results of a Bangko Sentral ng Pilipinas survey showed. In the BSP’s survey of private sector economists for December 2016, average inflation forecasts for 2017 and 2018 were raised to 3 percent and 3.1 percent respectively, from

2.7 percent and 2.8 percent during the survey last September. “For 2017, the respondents assigned a 77.1-percent probability that inflation will fall within the 2-4 percent target range,” the BSP said in a report. According to the BSP, “analysts attributed their higher inflation expectations to a weaker peso, higher global oil prices, robust domestic demand, and increased probability of further Fed rate hikes.” “The

increase in the mean inflation forecast was also driven by the recent uptick in domestic fuel prices and its impact on housing and transport inflation as well as possible effects on prices of the proposed tax reform measures, along with higher government spending,” the BSP

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added. “These were seen to outweigh the downside risks brought by the slowdown of the Chinese economy and the yuan devaluation, as well as the risk of recession and deflation in Japan and the Eurozone,” according to the BSP. The BSP’s latest survey of private sector

economists was conducted among 26 analysts between Dec. 7 and 29. The BSP forecasts inflation to accelerate to 3.3 percent this year after settling last year at 1.8 percent, below the government’s 2-4 percent annual target in the medium term. Last week, BSP Deputy Governor Diwa C. Guinigundo said that initially, they computed an additional 0.4-0.5 percentage point increase in the inflation rate this year

if ever the plan to impose higher excise tax rates on fuel as well as vehicles pushes through. “Basically, if that’s the case, that’s the upper end of the target. We need to assess how monetary policy can respond to these changes. But remember: this is a one-off development,” Guinigundo said.

A proposed measure that seeks to revert to the two-tier tax system on cigarettes may violate the country’s anti-trust law,

Federation of Philippine Industries chair Jesus Arranza said. “Imposing two tax rates on cigarettes is creating market segmentation

that favors manufacturers that sell cheaper brands and are subject to lower taxes. It’s against the competition law. If you are going to have a bigger market share, it should stem from fair competition in the market and not because the tax system is favoring you,” Arranza said in a statement. Tobacco products are currently subject to a single excise tax rate of P30 each pack as mandated under the Sin Tax Reform

Law or RA 10351 passed in December 2012. The House of Representatives, however, swiftly approved last month House Bill 4144, which seeks to amend the Sin Tax Reform Law. HB 4144 is not even a priority bill of the administration but it only took less than 10 days to have it approved in the Lower House. It only went through two meetings at the Ways and Means committee and two plenary sessions. Backed

by local tobacco firm Mighty Corp. and some lawmakers, House Bill 4144 proposed slapping an excise tax rate of P32 on cigarette packs priced at P11.50 and below, and P36 for those priced higher. “We in the business community were surprised with the passage of HB 4144 because we did not hear any complaints against RA 10351 in the last three months. “It is ironic that the same Congress that passed RA

10351 are the same ones who are pushing for the retention of a two-tier tax system,” Arranza said. “Once HB 4144 is passed in the Senate and becomes a law, I will file a case (before the Philiippine Competition Commission) because that’s anti-competitive behavior,” Arranza said. A quasi-judicial body, the PCC is mandated to protect consumer welfare by promoting a level playing field among businesses. Its task

is to conduct inquiries, investigate and penalize all forms of anti-competitive agreements, abuse of dominant market position, and anti-competitive mergers and acquisitions. Arranza said the Sin Tax Reform Law has resulted in increased budget for health, and reduced smoking prevalence. “Based on reports from the Bureau of Internal Revenue and the Department of Health, the government is achieving

the objectives of RA 10351. The law will even be more effective with a single tax rate as tax collections will go up because there will be less room to avoid paying taxes, and at the same time, there is a higher probability that the number of smokers will go down further,” Arranza said. According to the Philippine Society of General Internal Medicine, eight million Filipinos had already quit smoking since the Sin Tax

Reform Law was implemented. Government spending on infrastructure grew in November last year as concerned agencies continued to implement road and

construction projects in the country, data from the Department of Budget and Management (DBM) showed. Capital outlays reached P37.4 billion for the month, 37.5 percent higher than the P27.2 billion recorded in the same period in 2015. The bulk of capital outlays went to actual infrastructure projects at P30.4 billion, 49.3 percent higher from the previous year’s infrastructure spending. The remaining P7

billion was transferred to local government units, also for the same purpose. As of end-November, the DBM data showed the government has spent 80.5 percent of its total budget for capital outlays. This corresponds to P528 billion, up 40.8 percent from P375 billion in the same period in 2015. Actual infrastructure disbursements, alone, reached P426.3 billion during the January to November period, an increase of

46.3 percent from the same period in 2015. The DBM said infrastructure spending continued to be a steady source of growth of government disbursements from January to November last year. “This is attributed to the projects implemented by the Department of Public Works and Highways for both regular maintenance, upgrading of national roads and convergence programs,” the DBM said. Aside

from this, the DBM said disbursement for the modernization program of the Department of National Defense and Armed Forces of the Philippines, and the capital outlays for hospitals, schools and other facilities, also contributed to the upswing. Meanwhile, the DBM report also showed total government spending reached almost P2.27 trillion as of end-November last year, 13.7 percent higher than the previous

year’s level. Allotment releases, on the other hand, amounted to P2.84 billion or 94.6 percent of the P3.002 trillion budget for 2016, the DBM said. “Given the spending behavior of agencies to accelerate implementation before the closing of books, this could further boost the disbursements in December to surpass the 8.8 percent year-on-year growth recorded in 2015,” the agency said.

The typhoons that impacted on agricultural production in the last three months of last year likely dragged gross domestic

product (GDP) growth lower during the quarter, although economist polled by the Inquirer expected the full-year figure to have

settled near the upper end of the government target despite the transition to a new administration. Nine of 10 financial institutions asked said they expected a lower fourth-quarter GDP expansion than the better-than-expected 7.1-percent growth posted in the third quarter or the first three months of the Duterte administration. The government will announce the fourth quarter as well as full-year GDP

growth figures on Thursday. Only Moody’s Analytics had a higher forecast of 7.2 percent for the October-to-December period. “This would be the seventh consecutive quarter in which year-on-year GDP growth accelerated. The main driver of output growth will continue to be domestic demand, with private consumption and investment both expanding rapidly. Goods exports should also post a modest

improvement compared with previous quarters because of the uptick in global demand in recent months,” the research arm of Moody’s Corp. said. DBS Bank Ltd. economist Gundy Cahyadi said Philippine GDP likely grew 6 percent year-on-year in the fourth quarter, bringing the full-year expansion to 6.7 percent. The government targeted a growth of 6-7 percent in 2016. At the end of the first nine months, GDP

expansion averaged 7 percent, one of the fastest among emerging economies. “Ahead of the fourth-quarter GDP release [this] week, the government reported that farm output declined by 1.11 percent year-on-year in the fourth quarter. This indicates another weak number in the agricultural sector for the fourth quarter, capping the gains in investment,” noted Eugenia F. Victorino, ANZ Research ec onomist for

South and Southeast Asia. Victorino said they expected growth in the fourth quarter to have eased to 6.1 percent, although the full-year average would be a higher 6.7 percent. For economist Euben Paracuelles of Japanese financial giant Nomura, fourth-quarter GDP growth slowed to 6.4 percent “given more stable growth in the industrial sector and a significant decline in agriculture output due to the impact of

two typhoons.” “This will bring full-year 2016 growth to 6.8 percent, which is at the high end of the government’s target,” Paracuelles added. In a Jan. 12 report, Deutsche Bank Research said it expected 2016 expansion at 6.8 percent as the growth momentum drifted low er and eased to 6.5 percent in the fourth quarter. “While still above trend, our growth momentum measure drifted lower in October/November as

motor vehicle sales, remittances and factory output weakened pace (against non-oil imports, real credit growth and employment, which gained pace). Manufacturing output according to the Purchasing Managers’ Index survey also slowed a tad in the fourth quarter, albeit remaining solid, weighed down by slower input buying and employment. Likewise, exports are unlikely to prop up overall output , with

growth pared down by higher commodity prices,” Deutsche Bank said. Rajiv Biswas, Asia-Pacific chief economist at IHS Markit, projected a moderation in fourth-quarter growth to 6.5 percent to bring the end-2016 average to 6.8 percent. “Consumption expenditure continued to be a key growth driver in 2016, with private consumption boosted by strong consumer confidence and robust overseas worker remittances,

while public consumption was helped by election-related spending in the first half of the year. Rapid growth in the information technology-

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business process outsourcing (IT-BPO) industry is continuing to boost exports of IT-related services as well as creating rapid employment growth in the IT-BPO sector and catalyzing the development of office parks in major cities. The manufacturing sector showed very rapid

expansion, helped by strong domestic demand. However one sector that acted as a drag on growth was manufacturing exports, with electronics exports remaining weak despite a pickup in global electronics demand in the second half of 2016,” Biswas said. For Bank of the Philippine Islands vice president and chief economist Emilio S. Neri Jr., the economy grew 6.6 percent in the fourth quarter and 6.9 percent

for the entire 2016. “Hefty growth was sustained in the fourth quarter as government sustained spending just as the private sector continued to expand [its] fixed capital outlays. Household spending likely remained one of the strongest in the region but higher oil prices may have been a slight damper. Agriculture reverted to contraction due to bad weather but industry and services likely managed to sustain

their rapid growth led by construction and trade. The transport sector may have been mildly weighed down by higher petroleum prices quarter-on-quarter,” Neri explained. Standard Chartered Bank economist for Asia Chidu Narayanan said he expected GDP growth at 6.7 percent in the fourth quarter such that full-year expansion averaged 6.9 percent. “Fourth-quarter growth was also likely driven by still-robust

domestic demand and continued services-sector growth,” Narayanan said. In a note to clients, Metrobank research analyst Pauline May Ann E. Revillas said they expected the fourth quarter 2016 GDP growth to come in at 6.8 percent, making the full-year average growth at 6.9 percent. Land Bank of the Philippines market economist Guian Angelo S. Dumalagan said fourth-quarter expansion likely hit 6.9

percent, bringing the average 2016 growth to 7 percent. President Duterte’s economic managers will be in China today to firm up $15 billion in two-way investment and trade deals,

especially rail projects, committed when the President visited Beijing last year, the Department of Finance said. In a statement, the DOF said the high-level Philippine delegation visiting the mainland until tomorrow includes Finance Secretary Carlos G. Dominguez III, Budget Secretary Benjamin E. Diokno, Socioeconomic Planning Secretary Ernesto M. Pernia, Transportation Secretary Arthur Tugade, as

well as Public Works Secretary Mark Villar. Following its “economic and political separation” from long-time ally the United States, the Duterte administration adopted an “independent” foreign policy that pivots to China, among the Philippines’ other Asian neighbors. “While in Beijing, the Philippine officials are due to hold separate meetings with China Vice Premier Wang Yang, Commerce Minister Gao Hucheng,

and National Development and Reform Commission (NDRC) chair Xu Shaoshi,” the DOF said. NDRC is China’s chief planning and strategy agency. The Filipino officials would also meet with top executives of China Investment Corp., a sovereign wealth fund of the Chinese government, the DOF added. “The meetings will cover discussions on the government-to-government projects signed between the

Philippines and China; the proposed projects for financing and feasibility studies; the chairmanship of the Philippines this year of the Association of Southeast Asian Nations (Asean); and matters concerning the Asian Infrastructure Investment Bank (AIIB) and the Philippines’ flagship infrastructure projects such as the Phil ippine National Railway South Line, the Mindanao Railway and the Subic-Clark

Railway,” according to the DOF. As a whole, about 31 projects are in the pipeline for financing by the Chinese government, including the AIIB, state planning agency National Economic and Development Authority had said. The government planned to borrow up to $500 million from the AIIB this year to fund ready-to-implement projects, the DOF had said. Membership in the AIIB would allow co-financing with the

Manila-based multilateral lender Asian Development Bank (ADB) of the P37.76-billion Edsa Bus Rapid Transit project, as well as with the World Bank for the P23.46-billion Metro Manila flood control project, National Treasurer Roberto B. Tan had said. DOF documents had noted that the AIIB “can provide an annual financing window to the Philippines of about $200-500 million, representing a 400-1,150 percent

return on investment of our required paid-in capital of $200 million in five years.” The financing that can be provided by the AIIB dwarfs the $11.56 million in investments needed by the country yearly to narrow the infrastructure gap until 2020, as earlier projected by the ADB, the DOF had said. However, an ADB Institute report warned that an economic slowdown in China will significant ly impact on the Philippines’

merchandise exports, especially electronics. “Malaysia, the Philippines and Thailand export a lot in [parts and components as well as final goods]. Since China is a large economy that is close by, these Asean neighbors are clearly vulnerable to a slowdown in China,” Research Institute of Economy, Trade and Industry senior fellow Willem Thorbecke said in a working paper titled “How Would a Slowdown in the

People’s Republic of China Affect Its Trading Partners?” published this month. ADB Institute data showed that Philippine exports to China accounted for 7.4 percent of the gross domestic product. As a share of total exports, shipments of Philippine-made goods to China composed 29.5 percent of the total. Processed exports to China, meanwhile, accounted for 45.7 percent of total processed and ordinary

exports combined. The paper noted that “for the six most exposed economies (Taiwan, Malaysia, South Korea, Thailand, Singapore and the Philippines), exports of electronics products predominate.”

International foreign exchange trading guru Greg Secker is setting up shop in the Philippines as his charitable arm also pours almost all of its funds into the country this 2017. Secker said they have finished the legwork for the opening of offices for his Learn To Trade forex education business, as well as Capital Index, FX Capital and Smart Chart, that will offer their forex trading education and forex

trading platforms to Filipinos. Secker said his Greg Secker Foundation, which is building a model village in Lemery, Iloilo for 100 families rendered homeless by Super Typhoon Yolanda more than three years ago, will remain based in Iloilo City. “2017 is the year that we’re setting up our operations here in the Philippines. We set it up just before Christmas last year,” Secker said. “We’ll probably double our

operations here to pay for our foundation,” Secker said. “I made a commitment to this country three years ago, and I will stand by it,” Secker said. “We’re doubling up our operations, doubling up our seminars, and of course doubling up our trading. What’s interesting is that some of the wealthier Filipinos will be helping us pay for the village which is great, it’s a great way to give back,” Secker said. Secker said

that Filipinos have a huge potential to succeed and make good money from forex trading if they have the right education and tools. “With our new offices in the Philippines, we will deliver a more understood and fairer financial trading service. Our goal is to make you a successful trader by learning the value of true risk management and how to use it to profit from the markets,”Secker said. In his Learn to

Trade education and forex trading platform business, Secker says sustainability was also a goal similar to the GSF charitable projects. “We don’t want clients to lose, we want them to trade. Every time they trade you make some more commission. If they lose and we took all their money, you hit them one time and you get all their cash, but then you got nothing else. We want clients to grow their accounts so they

make money. Then they bring people in and then they make money. But we make a little tiny pieces on all of their trades,” Sec ker said. “That’s the best business model — beçause it’s sustainable.” “We believe anyone can financially free themselves by trading the markets. Most people will never take that leap because no one has been there to help them step by step; as they ‘learn to trade’ the markets,”

Secker added. “Learn to Trade is the largest trading educator in the world and we believe firmly in corporate and client responsibility. Providing first class risk management training, a trading platform that prevents trading errors while keeping risk low, with a brokerage that believes leverage should be based on education and trading experience. Setting a maximum leverage of 15:1, we believe this makes us

unique as allowing clients to trade with up to 300:1, inherently creates greater risk to client portfolios,” he explained. The Greg Secker Foundation (GSF) is pouring most of its philanthropic funds for 2017 into the Philippines to complete the transformation of a model village made up of 100 brand new homes it is building in the fifth-class municipality of Lemery, Iloilo which was devastated by Yolanda more than

three years ago. Secker, a “prophet of profit” in the high-stakes lucrative world of online foreign exchange trading and young founder of the GSF, said that about 90 percent of the foundation’s budget for its projects this 2017 will go to the Philippines, particularly for the GSF Village they are building in Lemery. “This is our big year for the Philippines,” Secker said. “This will be the year when we will launch the first

100 homes of our village. We’ll also build a school, and we’ll build a training center, and a farm,” Secker said in a press briefing at the

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Shangri-la The Fort last Friday. “We wont go live with this village ‘til the training center, school and farm is in place because we want it to be sustainable,” Secker said. Secker shared that the huge funding they were giving to the Philippines was a necessity after they met with

“challenges” as they neared the completion of the first 50 of the 100 homes they are building in the GSF Village. “We’ve had some big challenges. We underestimated the amount of erosion caused by rain and local typhoons,” Secker said. The foundation, however, is undaunted by the need to undertake some costly “slope protection” works. “We’ve had to increase our investment by about 40 percent....

The land is sliding away. So we have to go in with wire mesh and rocks, completely re-establish the land,” Secker said. “It was unexpected..It’s a bigger year than we thought it would be,” Secker said. “We’ve currently built 50 houses now, We’ve got 50 more to go. We’re building the houses at quite a fast rate,” Secker said. The homes being built by the foundation for the selected beneficiaries are

showcase homes that can even put to shame houses being built by the middle-class in rural Iloilo. The concerete homes being built in the Greg Secker Foundation Village have a lot area of more than 80 square meters, and floor areas of more than 40 square meters, with tiled comfort rooms and stainless steel sinks and whose future lawns are now already being landscaped by the designated beneficiary families

who will live in the beautiful houses. “They’re good quality houses, they’re typhoon resistant,” Secker said. “If you look at the quality of the homes compared to the other ones around that have been built by other organizations, these are a little bit more expensive. But I wanted to create something which is sustainable and would last,” Secker said. Secker went to the Philippines in the weeks after super typhoon

Yolanda devastated Lemery, Iloilo. The Western Visayas, along with Eastern Visayas, Central Visayas, and even up to Palawan in Region 4-B or the MIMAROPA (Mindoro-Marinduque-Romblon-Palawan) bore the brunt of the furious winds and heavy rains, which also brought with it a storm surge on November 8, 2013.

Tourist arrivals continued to climb last year, driven mostly by the improvement in the country’s air accessibility, the Department

of Tourism (DOT) reported. In a press conference during the ASEAN Tourism Forum in Singapore, Tourism Undersecretary for

administration Rolando Canizal told reporters international arrivals to the Philippines reached 5.39 million as of end-November last year, up 12.12 percent higher than the 4.8 million accumulated arrivals in the same period in 2015. Tourism receipts from foreign travelers, meanwhile, reached $4.46 billion or P210.76 billion, up 3.24 percent as compared to revenues recorded in the previous year. Canizal told

The STAR the improved air connectivity through the opening of more flights and routes fueled the growth of international arri vals to the Philippines. “Secondly, visitors now have greater confidence in the Philippines because they see that this administration takes peace and order seriously,” he said. The official also noted that foreigners’ reception of the country’s marketing initiatives is already “picking up.” “They

find the Philippines as a very good choice for vacation,” Canizal said. Korea remained the top source market of Philippine tourism with 1.33 million total arrivals, followed by the US with 772,000 and China with 630,000. Japan and Australia also made it to the top five markets, contributing 491,000 and 218,000 in arrivals, respectively.

More international cruise companies have started to express interest to dock in the Philippines, further strengthening the

government’s bid to make the country a major hub for international cruise ships. Tourism Secretary Wanda Teo on Thursday

revealed the agency was in discussions with cruise giants Carnival Cruise Line and the Genting Group. “I’ve been meeting with the executives of Carnival Corp. and Genting. Both agreed that the Philippines has great potential to become one of Asia’s cruise hubs,” Teo said. Star Cruises, a subsidiary of Genting Hong Kong, earlier announced its fleet flagship, Superstar Virgo, was set to establish Manila as

its new home port this summer. This is the first time a company has chosen the city as its vessel’s base. Michael Goh, SVP of Genting’s Dream Cruise Line, said the ships would start docking in Manila waters in March until May. He said Superstar Virgo would then offer a five-day cruise itinerary starting from Manila as its home port, going to Laoag, then Kaohsiung, Taiwan, and finally to Hong Kong, before going

back to Manila. “It’s the first time we’ll do it and we want to test out the market. And we have confidence about it,” Goh said in an interview. From January to October 2016, a total of 19 cruise ships carrying 24,712 passengers made calls to the Philippines. This was s till short of the 72,350 passenger target set by the DOT under its National Cruise Tourism Strategy. This year’s target, meanwhile, is to attract 85 port

calls, bringing in 75,000 travelers into the country. Superstar Virgo has a passenger capacity of 1,870. Tourism undersecretary for Administration Rolando Canizal said having a cruise home port in Manila would make it more affordable and convenient for locals to buy cruise packages. “What’s important about it is it will allow the Filipinos to take the cruise from Manila. This means to say Flipinos don’t

have to go to Hong Kong to take the cruise because they can just take the cruise from Manila,” the official said. Meanwhile, Canizal said the DOT was scheduled to meet with representatives of Royal Caribbean next week. “The vice president (of Royal Caribbean) will be seeing the Tourism Minister on Monday to discuss how we’ll be able to work with them, not only in terms of attracting more cruise visits to

the Philippines, but more in terms of how they would be able to help us develop our cruise products and infrastructure,” he said. The Bangko Sentral ng Pilipinas has eased rules on past due and non-performing loans to align them with international

standards. In a statement, the BSP said the amendments to the regulatory definitions of past due and non-performing exposures, including restructured loans, were aimed at aligning them with predominant global conventions as well as achieving internal consistency of classification across all types of loan products regardless of payment schedule. The Monetary Board, the BSP’s highest policy-setting

body, earlier approved these refined definitions in a bid to “promote a more responsive and consistent regulatory approach for BSP -supervised financial institutions.” According to the BSP, “the general rule is that an account that does not pay on contractual due date is deemed past due the following day” under the new definition. “However, BSP-supervised financial institutions are allowed to provide for a

cure period policy on a credit product-specific basis within which clients may be allowed to catch up on a late payment without being considered as past due, provided that the cure period policy is based on actual collection experience and reasonable judgment that support tolerance of occasional payment delays,” it said. “On the other hand, an account or exposure is considered non-performing, even without

any missed contractual payments, when it is deemed impaired under existing applicable accounting standards, classified as doubtful or loss, in litigation, and/or there is evidence that full repayment of principal and interest is unlikely without foreclosure of collateral, in the case of secured accounts. All other accounts, even if not considered impaired, shall be considered non-performing if any contractual principal

and/or interest is past due for more than 90 days, or accrued interests for more than 90 days have been capitalized, refinanced, or delayed by agreement,” the BSP added. The BSP will give the financial institutions it supervises until Dec. 31 to revise their management information and reporting systems with regards past due as well as non-performing exposures.

Most Philippine banks maintained their credit standards for loans to enterprises and households during the last quarter of 2016,

a survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed. The BSP’s Senior Bank Loan Officers’ Survey (SLOS) during

the period showed this is the 31st consecutive quarter that majority of local banks reported unchanged credit standards since the second quarter of 2009. The BSP came up with this result through the modal approach, which looks at the option with the highest share of responses. On the other hand, using the diffusion index (DI) approach showed a net tightening of credit standards for loans to enterpris es

and households. This means that the proportion of banks that have tightened their credit standards exceeds those who eased theirs. Results of the SLOS showed that the bulk, or 90 percent, of the respondents said credit standards imposed on firms remained unchanged, which translated to a steady credit standard based on the modal approach. Seven percent of the respondents said their standards have

been tightened, as compared to three percent who eased theirs. This indicated a net tightening based on the DI approach. Banks who have

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tightened their standards attributed it to their less favorable economic outlook, deteriorating profitability and perceived stricter financial system regulations. These banks are now implementing stricter collateral requirements and loan covenants, and increased use of interest

rate floors, increased credit line sizes and longer loan maturities. Majority of the banks also reported that they have maintained their standards for household loans, while the remaining five percent indicated a more tightened standard for households. “The tighter credit standards were attributed by respondent banks largely to their reduced risk tolerance and deterioration in borrowers’ profile,” the BSP said.

Ninety percent of the banks indicated that they have maintained their credit standards for commercial real estate loans during the period, while 94.1 percent said they did not change their standards for housing loans to individuals. However, respondents who claimed that they have tightened their credit standards for commercial and household real estate loans outnumbered those who eased theirs. Most banks

also anticipate steady credit standards for loans extended to enterprises and households in the following quarter this 2017, while some banks expect a tightening due to their unfavorable economic outlook and lower tolerance for risk, among others.

Port operator Asian Terminals Inc. (ATI) is putting up a state-of-the-art multilevel CBU storage facility (MCSF) within the Batangas Port to increase the port’s storage capacity by nearly 50 percent. The investment comes after a record year for Batangas Port when it handled over 200,000 completely built imported car units (CBUs), its highest car throughput in a single year. ATI said the MCSF, which will

be fully operational early next year, is being developed in support of the car industry’s rapid growth. “The MCSF will allow South Luzon’s international gateway port to handle over 7,000 imported vehicles at a single time,” ATI said. ATI’s Batangas Port accounts for majority of the country’s annual car imports due largely to the convenience, efficiency, and proximity it offers to the major car manufacturers,

importers, and distributors based in the Calabarzon region composed of Cavite, Laguna, Batangas, Rizal, and Quezon. The Social Security System (SSS), the state-owned pension fund for private employees, is targeting to raise the return on

investments to an average of 15 to 20 percent this year from an average of seven percent last year, its chairman said . “We hope to bring it up by 15 to 20 percent this year following the enhancements in investment practices and the new investing projects and activities we plan to carry out in the next several months,” SSS chairman Amado Valdez said. SSS has an Investment Reserve Fund (IRF)

amounting to roughly P480 billion, said SSS president and CEO Emmanuel Dooc. To maximize returns, Dooc said the pension fund plans to look for investment opportunities abroad, similar to the strategy of the Government Service Insurance System (GSIS). He said SSS can invest abroad to a maximum of 7.5 percent or roughly P36 billion of its IRF. Valdez said SSS is also pushing for amendments to its charter

to be able to remove the conservative provisions on SSS’ investing capacities. For instance, SSS could only invest in private securities, housing, real estate, short and medium-term member loans, government financial institutions and corporations, infrastructure projects, foreign currency denominated investments and any particular industry that the Commission deems profitable. But SSS wants to diversify

assets by directly investing up to 25 percent ownership in a wide range of industries, including infrastructure projects like toll roads, real estate and even lottery operations, which are being studied rigorously by the agency. “For example, these innovative approaches of SSS in earning more for the pension fund may even result in the eradication of jueteng operations which is controlled by the rich. SSS plans to

conduct lottery operations on its own and share the income from it to our pensioners,” Valdez said. “With proposed innovations in investments, SSS is shaping a new developmental ideology to give the working class an opportunity to be the richest in the country through their pooled savings in the pension fund,” he said. Early this month, President Duterte approved an across-the-board pension increase of

P2,000 that would benefit over two million pensioners, with the initial P1,000 increase immediately and another P1,000 in 2022 or earlier. At the same time, Duterte approved the proposal of the economic managers to ensure the sustainability of the pension fund by implementing an additional 1.5 percent contribution rate and lifting the maximum monthly salary credit (MSC) to P20,000 from the current

P16,000 by May 2017. Dooc said the P1,000 increase in SSS benefit is already fully financed and that the additional hike in contribution would be used to enlarge the IRF.

The Big Chill Inc. (TBCI), a subsidiary of publicly listed Agrinurture Inc. (ANI), is eyeing an initial public offering (IPO) this year to enable the company to expand in the Greater China Region as it hitches on improved bilateral relations between Manila and Beijing. The company owns iconic brands Big Chill and Fresh Bar and is the franchisor of Tully’s Coffee in the Asia Pacific region. In

recent years, it started offering franchises in major cities in the Philippines and Asia with the fastest growth expected in Greater China Region. Proceeds from the planned public listing would fund the capital expenditures it needs to expand in China. With the craze for Japanese-themed food chains in Asia, the combined Tully’s and Big Chill stores are expected to be well accepted by consumers in Asia.

Tully’s is the famous coffee brand originally from Seattle that outperformed Starbucks in Japan. As part of the planned listing, ANI has notified its shareholders on Monday (Jan. 23, 2017) that they are going to receive one warrant — (5-year American call option) — of TBCI priced at par value of 1 peso each for every 2,000 shares of ANI as of cut off date February 3, 2017. The Big Chill Inc. was established in

1994 as a new concept serving premium quality blended shakes made with 100 percent fresh-cut fruit, targeting mainly the AB and upper C market segments through its extensive network of shops and kiosks that provide convenient access to fresh fruit shakes. Its parent firm ANI has been serving the raw material to the food service sector in Asia for the last two decades following its farm to plate model. The Fresh

Bar, meanwhile, is an expanded concept of Big Chill which offers the same fresh fruit shakes along with a line of hearty gourmet soups, healthy pasta offerings, fresh salads and sandwiches. Both The Big Chill and Fresh Bar brands provide new food service beverage concepts ideally suited for today’s healthy and fast paced lifestyle. ANI, which is engaged in the trading and distribution of fresh fruits and

vegetables in the Philippines, acquired TBCI in 2011 as part of its strategy to forward integrate and complete its vision of becoming a global leader in providing nutrition from farm to fork. ANI is engaged in the management and operation of food and beverage outlets under a range of brands that cater to different market segments in Manila, Hong Kong, and Xiamen. Taipei and Xuzhou are expected after the

lunar new year break. Under ANI’s management, TBCI is projected to churn revenues close to P5 billion a year. To date, there are eight F&B brands in the TBCI roster catering to a variety of market segments. The company will file the necessary regulatory approvals for the planned listing this year. The Philippine Stock Exchange (PSE), the operator of the local bourse, is looking at six to eight initial public

offerings (IPOs) this year or possibly double the four IPOs last year. PSE president Hans Sicat said the environment is better this year as some of the global uncertainties have already dissipated. These include last year’s policy rate setting meeting of the US Federal Reserve, the US elections and move of Britain to exit from the European Union. Last year, total capital raised from the local bourse including IPOs

amounted to P170.12 billion, slightly lower than the P184.60 billion raised for the whole of 2015.

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ASIA-PACIFIC

Japan's Nikkei share average dropped more than 1 percent on Monday as exporters fell on a stronger yen, while sentiment was subdued on concern over U.S. President Donald Trump's protectionist trade views. The Nikkei dropped 1.3 percent to 18,891.03. The broader Topix dropped 1.2 percent to 1,514.63, and the JPX-Nikkei Index 400 slipped 1.3 percent to 13,567.32. The Mothers index was up

0.2 percent, while the Jasdaq market added 0.5 percent. China's main share index ended at a two-week high on Monday, but pared some of its earlier gains in thin turnover as investors were

reluctant to stake out fresh positions ahead of the country's biggest holiday. Most sectors were largely unchanged but gains were led by the materials sector, underpinned by a broadly weaker U.S. dollar. The Shanghai Composite Index gained 0.4 percent to 3,136.77 points while the blue-chip CSI300 index rose 0.3 percent, to 3,364.08 points. The People's Bank of China said on Friday it would provide

temporary liquidity support for 28 days to several major banks to address seasonal liquidity stress ahead of the Lunar New Year, a new policy tool designed to ease cash shortages. The stock market will be closed from Jan. 27 to Feb 2. State media reported on Monday that the move signalled stable and neutral monetary policy. "Given the rising inflation and stable growth, the focus of monetary policy is unlikely

to move away from containing financial risk for now," Larry Hu and Jerry Peng from Macquarie Securities wrote in a research note. Among best thematic gainers were defence stocks , which added 1.3 percent, after news President Xi Jinping would head a new commiss ion overseeing joint military and civilian development.

Japanese Prime Minister Shinzo Abe said on Monday he believed U.S. President Donald Trump understood the value of free trade

and that he would keep pitching a multinational trade pact that Trump's administration has vowed to exit. "I believe President

Trump understands the importance of free and fair trade, so I'd like to pursue his understanding on the strategic and economic importance of the TPP (Trans-Pacific Partnership) trade pact," Abe told a session of parliament's lower house. Abe also said he wanted to strengthen the U.S.-Japan security alliance, based on mutual trust with Trump. "When we met last time, I believed him to be trustworthy, this belief has

not changed today," Abe added, referring to his November meeting with then-president-elect Trump. Abe also said Tokyo wanted to explain how its companies have contributed to the U.S. economy, a stance the Japanese government has adopted to try to fend off threats of a "border tax" on imports into the United States. Japanese Chief Cabinet Secretary Yoshihide Suga said separately that Tokyo would

closely monitor any impact of the new U.S. administration's policies on its companies and that he wanted to deepen economic ties between the two countries. Trump took office as the 45th president of the U.S. on Friday and pledged to end what he called an "Americ an carnage" of rusted factories and crime in an inaugural address that was a populist and nationalist rallying cry. The new Trump administration said on

Friday its trade strategy to protect American jobs would start with withdrawal from the 12-nation Trans-Pacific Partnership (TPP) trade pact. The trade deal, which the United States signed but has not ratified, was a pillar of former president Barack Obama's pivot to Asia, and Abe has touted it as an engine of economic reform, as well as a counter-weight to a rising China.

Japan is threatening to take India to the WTO over restrictions that nearly halved its steel exports to the South Asian nation over

the past year, a step that could trigger more trade spats as global tensions over steel and other commodities run high. Such

action is rare for Japan. The world's second-biggest steel producer typically tries to smooth disputes quietly through bilateral talks, but with global trade friction increasing, Japan's defence of an industry that sells nearly half of its products overseas is getting more vigorous. Besides concern over India's protection of its domestic steel industry, Japan is also worried about the more rough and tumble climate for

global trade being engendered by incoming U.S. President Donald Trump, and feels it must make a strong stand for open and fair international markets. "We need to stop unfair trade actions from spreading," said a Japanese industry ministry official, exp laining a Dec. 20 request for WTO dispute consultations with India over steel safeguard duties and a minimum import price for iron and steel products.

India imposed duties of up to 20 percent on some hot-rolled flat steel products in September 2015, and set a floor price in February 2016 for steel product imports to deter countries such as China, Japan and South Korea from undercutting local mills. "If consultations fail to resolve the dispute, we may ask adjudication by a WTO panel," the industry ministry official said. Such action could come as soon as 60

days - in February - after its consultation request was filed in December. Tokyo says India's actions are inconsistent with WTO rules and contributed to the plunge in its steel exports to India, which dropped to 10th-largest on Japan's buyer list in 2016 through November, down from sixth-largest in 2015. "We are following the WTO guidelines," said a top official at India's steel ministry, though adding that New Delhi

is ready to sit across the table for trade talks. As of Friday, the date of a WTO-led consultation had not been set. China's three largest bitcoin exchanges, whose activities have drawn increased scrutiny from the central bank, said they will

begin charging trading fees effective Tuesday. BTCC, Huobi and OkCoin said in separate statements on their websites late on Sunday that they will charge traders a flat fee of 0.2 percent per transaction. Each of the statements said assessing fees will "further curb market manipulation and extreme volatility". The absence of trading fees has encouraged volumes and boosted demand at Chinese bitcoin exchanges. The New York Times, citing data by blockchain analysis firm Chainalysis, reported in late June that 42 percent of all bitcoin

transactions took place on Chinese exchanges in the first half of the year. The bitcoin price BTC=BTSP soared to near-record highs in the first week of this year, attracting attention from Chinese regulators. During 2016, China's yuan currency CNY=CFXS weakened 6.6 percent against the dollar, its worst performance since 1994. On Jan. 11, the People's Bank of China (PBOC) launched spot checks on BTCC,

Huobi and OkCoin to look into a range of possible rule violations, amid increasing government efforts to stem capital outflows and relieve pressure on the yuan. A person familiar with the matter said the exchanges had not received direct instructions from the PBOC, but decided to introduce trading fees to align with its wishes to see the bitcoin market cool down. On Monday morning, the price of bitcoin was

down around 1 percent on the BTCC exchange to 6,317 yuan, equivalent to around $923. BTCC Chief Executive Bobby Lee said last week that the three exchanges had discussed introducing trading fees.

Singapore is set to be 2017's hottest spot for initial public offerings (IPOs) in tropical Southeast Asia with sales of stakes in business and real estate trusts, while currency volatility and weak investor sentiment curb deals elsewhere in the region.

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Singapore's stock exchange has promoted itself as a center for business trusts and real estate investment trusts, which offer stable dividends. That has helped it partly make up for a drop in major share sales as large Chinese firms favor the higher valuations and liquidity

of Hong Kong. Fundraising via IPOs in Singapore hit $1.7 billion last year, up fivefold from 2015 when it slumped to its lowest since 1998, Thomson Reuters data showed. "REITs and business trusts have been the flavor for some time because they give a steady income stream for investors and typically the play in Singapore has been dividend-focused rather than pure capital gains-focused," said Srividya

Gopalakrishnan, managing director of corporate finance advisor Duff & Phelps Singapore. Dasin Retail Trust, comprising three shopping malls in Zhongshan city in China's Guangdong province, kicked off its S$146 million ($102 million) IPO this month. Bankers also expect Singapore Telecommunications Ltd to list broadband unit NetLink Trust in the second half of the year, in a deal that could raise about $2.5

billion. Elsewhere in Southeast Asia, significant fluctuation in the rupiah over the past year could dampen appetite for list ings in Indonesia, while firebrand politics and a drop in the peso are risks for the Philippines, bankers and analysts said. Higher benchmark interest rates under a new government in the United States could also tempt international investors to pull money out of riskier emerging markets, they

said. Sizeable listings are planned in Malaysia but market sentiment has been crushed by a slump in commodity prices and a financial scandal involving state investor 1Malaysia Development Bhd Last year, just $238 million was raised in Kuala Lumpur IPOs, the lowest since 2008, Thomson Reuters data showed. "We think that there is a healthy pipeline out there. However, because capital markets are so

acutely vulnerable to investor sentiment and market conditions, it would be a matter of timing as to when these listings will happen," said Wong & Partners deputy managing partner Munir Abdul Aziz. Oil and gas engineering firm Serba Dinamik Holdings Bhd [IPO-SERB.KL], which aims to raise $130 million through a listing early this year, has not secured cornerstone investors.

REST OF THE WORLD

U.S. stocks edged lower on Monday as early moves by President Donald Trump highlighting a protectionist stance on trade gave investors cause to rethink the post-election rally. In his latest executive order, Trump signed to formally withdraw the United States from the 12-nation Trans-Pacific partnership trade deal. Trump has also vowed to renegotiate the North American Free Trade Agreement (NAFTA)

with leaders of Canada and Mexico. "Investors are really trying to gauge what the potential fallout or impact of Trump’s approach to trade, economics, taxes and regulation looks like," said Peter Kenny, senior market strategist at Global Markets Advisory Group, in New York. Earlier in the day, Trump met with a dozen prominent American manufacturers at the White House and said he would slash regulations and

cut corporate taxes to boost the economy. Trump also plans to meet with leaders of construction and sheet metal unions on Monday and automotive executives Tuesday.

U.S. President Donald Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal on Monday, distancing America from its Asian allies, as China's influence in the region rises. Fulfilling a campaign pledge to end American involvement in the 2015 pact, Trump signed an executive order in the Oval Office pulling the United States out of the 12-nation TPP.

Trump, who wants to boost U.S. manufacturing, said he would seek one-on-one trade deals with countries that would allow the United States to quickly terminate them in 30 days "if somebody misbehaves." “We're going to stop the ridiculous trade deals that have taken everybody out of our country and taken companies out of our country," the Republican president said as he met with union leaders in the

White House's Roosevelt Room. The TPP accord, backed heavily by U.S. business, was negotiated by former Democratic President Barack Obama's administration but never approved by Congress. It had been the main economic pillar of the Obama administration's "pivot" to the Asia-Pacific region to counter China. Trump has sparked worries in Japan and elsewhere in the Asia-Pacific with his

opposition to the TPP and his campaign demands for U.S. allies to pay more for their security. But his trade stance mirrors a growing feeling among Americans that international trade deals have hurt the U.S. job market. Republicans have long held the view that free trade is a must, but that mood has been changing. "It's going to be very difficult to fight that fight," said Lanhee Chen, a Hoover Institution fellow who was domestic policy adviser to 2012 Republican presidential nominee Mitt Romney. "Trump is reflecting a trend that has been

apparent for many years." Harry Kazianis, Director of Defense Studies at the Center for the National Interest think tank in Washington, said Trump must now find an alternative way to reassure allies in Asia. "This could include multiple bilateral trade agreements. Japan, Taiwan and Vietnam should be approached first as they are key to any new Asia strategy that President Trump will enact,” he said. Trump is also

working to renegotiate the North American Free Trade Agreement to provide more favorable terms to the United States, telling reporters he would meet leaders of NAFTA partners Mexico and Canada to get the process started.

The new U.S. administration of President Donald Trump vowed on Monday that the United States would prevent China from taking over territory in international waters in the South China Sea, something Chinese state media has warned would require Washington to "wage war." The comments at a briefing from White House spokesman Sean Spicer signaled a sharp departure from

years of cautious U.S. handling of China's assertive pursuit of territory claims in Asia, just days after Trump took office on Friday. "The U.S. is going to make sure that we protect our interests there," Spicer said when asked if Trump agreed with comments by his Secretary of State nominee, Rex Tillerson, on Jan. 11 that China should not be allowed access to islands it has built in the contested South China Sea. "It’s a

question of if those islands are in fact in international waters and not part of China proper, then yeah, we’re going to make sure tha t we defend international territories from being taken over by one country," he said. Tillerson's remarks at his Senate confirmation hearing prompted Chinese state media to say the United States would need to "wage war" to bar China's access to the islands where it has built

military-length air strips and installed weapons systems. Tillerson, who was expected to be confirmed as secretary of State on Monday, was asked at the hearing whether he supported a more aggressive posture toward China and said: "We’re going to have to send C hina a clear signal that, first, the island-building stops and, second, your access to those islands also is not going to be allowed.” The former

Exxon Mobil Corp (XOM.N) chairman and chief executive did not elaborate on what might be done to deny China access to the islands. But analysts said his comments, like those of Spicer, suggested the possibility of U.S. military action, or even a naval blockade, that would risk armed confrontation with China, an increasingly formidable nuclear-armed military power. It is also the world's second-largest economy and

the target of accusations by Trump that it is stealing American jobs. Spicer declined to elaborate when asked how the United States could

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enforce such a move against China, except to say: “I think, as we develop further, we’ll have more information on it.”

American International Group Inc. (AIG) has agreed to pay roughly $10.2 billion to Warren Buffett’s Berkshire Hathaway Inc. to take on many long-term risks on US commercial insurance policies it has already written. The reinsurance transaction covers “long-tail” exposures, which are liabilities that emerge long after policies are issued, from excess casualty, workers compensation and other AIG

policies issued before last year. Berkshire’s National Indemnity Co unit, led by Buffett’s reinsurance chief Ajit Jain, will take on 80 percent of net losses in excess of the first $25 billion, with a maximum liability of $20 billion. AIG said the payment comprises $9.8 billion plus interest since Jan. 1, 2016, and will be made by June 30. The transaction helps AIG chief executive Peter Hancock lower risk at his New York-

based insurer, which has reduced exposures and shed businesses since its 2008 federal bailout, and frees up capital for share buybacks. “This decisive step enables us to focus firmly on the future,” with “additional risk capacity to serve our clients and return capital to shareholders,” Hancock said in a statement. For Buffett, the transaction boosts how much his Omaha, Nebraska-based conglomerate can

invest, including stocks and whole companies. Berkshire’s float, which helps fund growth and reflects the premiums collected upfront before claims are paid, totaled $91 billion on Sept. 30. In a research note, Barclays Capital analyst Jay Gelb said the transaction’s long-term economics should be “attractive” for Berkshire. But Gelb and US analyst Brian Meredith said the transaction may signal lingering

problems in AIG’s portfolio, even after a $3.6 billion charge in late 2015. “This announcement indicates that there may be more pain left,” wrote Meredith, who rates AIG “neutral.” Gelb rates it “overweight.” Berkshire did not respond to requests for comment. AIG plans to take a charge in the just-completed quarter for the transaction. It said it would have recognized a $2.9 billion loss had the transaction occurred a

year ago. The payment to Berkshire represents nearly three percent of AIG’s investment portfolio. AIG will retain authority to handle and resolve claims, similar to an arrangement that Hartford Financial Services Group Inc. struck when it passed some asbestos liabilities to National Indemnity this month. National Indemnity in 2014 reached a similar reinsurance transaction with Liberty Mutual covering $6.5

billion of liabilities, but took responsibility for resolving asbestos and environmental claims. In afternoon trading, AIG shares rose 13 cents to $66.42, while Berkshire Class A shares rose $690 to $239,550.

British Prime Minister Theresa May will stress the value of free trade and her support for the Iran nuclear deal when she meets U.S. President Donald Trump later this week, her spokeswoman said on Monday. Trump's election has raised questions over the future of the so-called special relationship that has underpinned close British-American ties for decades, but the new U.S. leader has

praised last year's vote to leave the EU and says he wants to arrange a swift bilateral trade deal with Britain. Supporters of Britain's exit from the European Union have cheered these comments, but others have questioned how this will fit with Trump's protectionist policies, including his inaugural speech promise to put "America first". "You can expect the prime minister to be very clear during her U.S. visit on

the benefits of free trade and championing them and wanting to look at what more can be done to increase that," May's spokeswoman told reporters on Monday. The spokeswoman said she expected the prime minister would also make clear to Trump that Britain is a strong supporter of the 2015 nuclear accord between Iran and world powers, which the new U.S. leader has threatened to either scrap or change.

At the White House, Trump spokesman Sean Spicer said the new U.S. president will discuss the potential for greater trade with Britain in his meeting with May. He said he did not believe there were plans for the two leaders to hold a news conference. Spicer acknowledged the "special relationship" between the United States and the UK, adding, "but we can always be closer." May is due to attend the annual

"Republican Retreat" in Philadelphia on Thursday, becoming the first serving head of state to speak at the event, before holding bilateral talks with Trump in Washington on Friday. Thousands of women marched in London on Saturday to protest about Trump's attitude to women, joining demonstrations held in major cities across the globe. When asked during a BBC interview on Sunday about controversy

over Trump's comments on women, May, Britain's second female premier, said she would not be afraid to challenge any "unacceptable" talk from Trump. She is also expected to discuss NATO with Trump, who has described the military alliance as "obsolete." Ahead of her U.S. visit, May spoke with NATO Secretary General Jens Stoltenberg on Sunday. "They discussed the continued importance of the alliance

as the bulwark of our defense and agreed on the need for the alliance to continue to evolve to be able to effectively counter the biggest threats of the day, in particular terrorism and cyber attacks," a spokesman for May said after the call. "The prime minister said she would be taking these messages to Washington later this week."

Counterfeit Detection – 04 February 2017

Seven Basic Quality Tools – 04 February 2017

RA. 10173: Data Privacy Act – Aligning Information Security Compliance to ISO 27001:2013 – 11 February 2017

BSP Cir. No. 706, AMLA Law, RA 10365 and the AML Risk Rating System – 17

February 2017

ISO 22316: Organizational Resilience - Moving from Continuity to Resiliency –

18 February 2017

Solving Problems in the Workplace: Creative Problem Solving & Decision

Making – 23 & 24 February 2017

Excel Training for Bankers – 23 & 24 February 2017

Accounting for Non-Accountants with Analysis of Financial Statements – 03 & 04 March 2017

EQ and Leadership for Bankers – 17 March 2017

Compliance with Operational Risk Management Guidelines – 17

March 2017

Related Party Transactions – 17 March 2017

Signature Verification & Forgery Detection – 18 March 2017

Understanding Bank Regulations for Bank Products – 18 & 25 March 2017

Training the Bank Trainers – 24 & 25 March 2017

Fraud Risk Management – 25 March 2017

Establishing Internal Controls per BSP Cir. No. 871 – SEMINAR TWO – 25

March 2017

IT Security and Auditing – 8 April 2017

How to Spot Fake IDs and Money Mules – 29 April 2017

For details, please contact BAIPHIL via telephone (853-4457/519-2433) or email training@baiphil.org.

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JANUARY 15-31

19 Irene S. Quintana - UCPB

23 Gloria C. Sinlao - Sumitomo Mitsui

23 Rebecca S. Torres - BDO

24 Thelma M. Idaba - Northpoint Development

27 Marilyn G. Yuchenkang - ChinaBank

29 Alex V. Buenaventura - One Network

LIMITED EDITION - A copy of a work of art made from a master image, and which is made in batches

of a set size. A limited edition may be created from a hand-created original print, or may be created

using more advanced technology. The number of limited edition prints is often limited by the lifespan

of the material the print is created from.

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BAIPHIL Market Watch – 24 January 2017

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LUNCH WITH WARREN BUFFETT

They say time is money. If you’re name

is Warren Buffett, your time is very, very expensive. A couple years ago, the third wealthiest man in the world decided to hold

an auction where the proceeds would benefit the San Francisco-based Glide Foundation. What was he auctioning off?

Himself. For $2,630,000, an anonymous bidder and seven of his friends won the opportunity to attend lunch with the

legendary investor at NYC’s Smith & Wollensky steakhouse. Big money talk.

REFERENCE COMPILED AND PREPARED BY: RESEARCH AND INFORMATION COMMITTEE FY 2016-2017

BPI Asset Management Business World Philippine Daily Inquirer Philippine Star GMA News ABS-CBN News Bulletin Today PSE

Reuters Bloomberg CNN Wall Street Journal Investopedia Brainy Quotes Goodreads Corsinet- Trivia

Director: Maria Teresita R Dean (ChinaBank Savings) Chair: Sheryll K. San Jose (Equicom Savings Bank) Member: Rachelle A Fajatin (Equicom Savings Bank)

DISCLOSURE: The BAIPHIL Market Watch (BMW) is for informational purposes only. The content of the BMW is sourced from third party websites and may be subject to change without notice. Although the information was compiled from sources

believed to be reliable, no liability for any error or omission is accepted by BAIPHIL or any of its directors, officers or employees, and BAIPHIL is not under any obligation to update or keep current this information