01:03.4
We begin with a look at morning trade in Asia.
01:06.7
Equities here saw a mixed opening on Wednesday as the rally on Wall Street overnight faltered.
01:13.2
Investors now also split on the sustainability of the markets rally amid economic headwinds in the region and in the other side of the world.
01:22.4
A look at some of the major indices this morning.
01:25.4
The Nikkei 225 is down seven-tenths of a percent.
01:28.2
As traders await earnings reports from auto giants Toyota and Mitsubishi.
01:35.2
Also out this week, pay statistics in Tokyo and the closely watched April trade data from China.
01:41.8
South Korea's KOSPI and the ASX 200 marginally higher so far.
01:48.2
A look at now the financial markets in the United States.
01:51.7
Wall Street saw a mixed close to Wednesday with the S&P and the Dow extending their winning streaks.
01:58.0
Last night's advances pushed the S&P to its best winning run since March.
02:02.5
Now that performance came as even Walt Disney reporting profit for the first time from its streaming platform but also warned of bumps ahead.
02:13.3
The tech-heavy Nasdaq meanwhile was down.
02:17.6
Well, you know, we've been calling this whole year for the markets the bucking bull and that's both stocks and bonds.
02:24.1
And we've seen some bucking recently in equities.
02:28.6
But that's begun to reverse.
02:30.6
We're now actually seeing the bull run in equities and fixed income.
02:34.6
So markets have been a little choppy today.
02:37.1
But we're still running with the bulls.
02:39.1
We're still buying equities and we're still buying fixed income.
02:43.8
Taking a look at U.S. futures now.
02:46.3
They are poised for another mixed session.
02:48.2
But the Nasdaq looks set for a higher open.
02:53.4
Now to another story making the headlines overseas.
02:56.9
TikTok and its Chinese.
02:58.0
His parent firm challenged a new U.S. law that would force the popular app to divest from ByteDance or face a ban in America.
03:06.7
ByteDance in a lawsuit argues the new law vaguely paints its ownership of TikTok as a national security threat despite no concrete evidence.
03:16.8
It also asserts the law is unconstitutional saying it unfairly singled out the platform.
03:22.1
The measure signed by U.S. President Joe Biden marks the first time Washington.
03:28.0
Singled out a social media company for a potential ban due to concerns China could spy on sensitive data in the U.S.
03:35.8
Around 170 million Americans are using TikTok currently.
03:42.1
Our big corporate story back here at home.
03:45.0
Top Philippine conglomerates team up with government to preserve marine life in the crucial Verde Island Passage.
03:51.7
Now tycoons Manny Pangilinan of Metro Pacific Investments, Ramon Ang of San Miguel Corporation,
03:57.1
and Sabi Naboyti.
03:58.2
Of a boy these equity ventures signed the agreement on Tuesday with the environment and energy departments.
04:03.6
Now the five-year deal puts into the firm's responsibility the conservation and protection of the critical waterway that connects Luzon to the Mindoro Islands.
04:15.4
Now parties would also be required to put up a marine science research station in the area with Philippine universities and California's Academy of Sciences.
04:25.0
The move follows the landmark partnership between the three.
04:28.0
Firms last March to develop the country's most expansive integrated liquefied natural gas facility in Batangas province.
04:37.2
Environment chief Tony Yulo Loizaga says the new agreement shows the government's commitment to transitioning to renewable energy sources.
04:46.1
I'm hopeful that these new partnerships will empower us to better serve this ecosystem, our communities, and the country as we collectively strive to achieve a low carbon and climate-friendly future.
04:58.0
The Verde Island Passage is deemed a crucial route for international ports and oil and gas facilities.
05:08.9
Beyond its environmental value, Verde Island Passage is also critical to our nation's shipping, fisheries, and tourism sectors.
05:21.2
Responsible management of these resources is key to supporting local communities and their communities.
05:28.5
And ensuring sustainable future for the generation to come.
05:33.0
Gas is a transition fuel. It is not a permanent fuel for this country in the future.
05:39.4
The goal remains to be a clean, sustainable, and renewable mix for this country. And we all subscribe to that conviction.
05:52.8
Now here's a look at some of the local corporate stories we're watching out for this morning.
05:58.0
SM Investments and SM Prime announcing the creation of a $3 billion European medium-term note program.
06:04.6
The C Group says the move, previously reported in April, will allow it to tap the offshore bond market for funding of its growth and expansion.
06:14.5
And in earnings this morning, DMCI reports a 25% drop in its first quarter profit.
06:20.4
Net income stood at 5.6 billion pesos on lower contributions from most of its businesses.
06:26.4
Now net earnings.
06:28.0
Now we're up to 4.7 billion pesos.
06:31.4
That's nearly double its pre-pandemic level.
06:37.6
Now inform a market set to host Livestock Philippines and Aquaculture Philippines later this month.
06:43.5
The three-day event aims to showcase innovations in the agriculture sector featuring cutting-edge products and technologies from market-leading exhibitors.
06:52.9
Now joining us to discuss more about that event are Dante Palabrica from the Agriculture Department.
06:58.0
And Rungpek Chitanwat from Informa Markets.
07:02.7
Hi Dante and Rose. Welcome to the show.
07:05.8
Hi. Good morning.
07:08.4
All right. Now I'd like to talk to Dante first.
07:11.2
The Livestock and Aquaculture Expo couldn't have come at a better time when we are grappling with food supply-driven inflation.
07:18.5
First, maybe a sense of the livestock and aquaculture landscape in the Philippines.
07:23.5
And are these industries growing, shrinking, or stagnating?
07:28.0
Okay. Good morning.
07:31.2
The industry is growing.
07:34.7
And with the Department of Agriculture support, we intend to have an incremental growth in the agricultural sector.
07:47.8
So it is growing.
07:49.7
Now what are the current challenges to the growth of these sectors, specific to these sectors in fact?
07:55.6
If you're able to tell us.
07:60.0
The biggest challenge will be diseases, emerging diseases, which can decimate our pig, chicken, and other livestock.
08:15.2
But we're up to it.
08:16.8
We're doing our part in order to see to it that our livestock will be growing despite all these diseases.
08:28.0
We're doing our part in order to see to it that our livestock will be growing despite all these diseases that are happening in the country.
08:30.7
And what about aquaculture?
08:32.2
Are there specific threats to these sectors as well?
08:37.4
Also in aquaculture, we're doing animal husbandry practices, animal aquacultural practices.
08:48.4
And this is part of the DA move in order to help the aquaculture business.
08:58.1
Dante, you know, we're also currently grappling with El Niño, which is of course threatening the supply of food in the country.
09:05.1
Are measures sufficiently in place now to minimize the droughts effect on livestock and fish production in particular?
09:11.9
And perhaps, what are the threats that are unique to each of these sectors when it comes to El Niño?
09:19.1
I have to deal with livestock because I am the asset for livestock.
09:23.1
And we are ready.
09:25.1
The private sector is ready.
09:27.1
We are ready with El Niño.
09:29.1
This time, we have a lot of farms which are cool-cell houses and not anymore open-sided houses.
09:39.1
When you have a cool-cell houses, especially in pigs and poultry, you can avoid fluctuation of 5 degrees and 5 degrees down.
09:50.1
Because once the temperature goes up or it goes down by 5 degrees,
09:56.1
you will have some respiratory problem on animals.
10:01.1
So we're ready for this.
10:03.1
Our private sectors have invested a lot of money for controlled houses.
10:12.1
So these problems can partly be addressed by technology, which brings me to my next point.
10:18.1
You know, you're gathering industries and stakeholders.
10:21.1
Rongpets, they're coming together for Livestock Philippines 2020.
10:25.1
This is going to happen from May 22 to the 24th this year for the International Trade Fair
10:32.1
for innovative production and processing for poultry and livestock.
10:36.1
Now, there is a concurrent event as well with Aquaculture Philippines 2024.
10:41.1
Now, what sets this gathering apart from those in the past,
10:45.1
given the new challenges that we are encountering, Rongpets?
10:51.1
From your question to Sir Dante,
10:53.1
we can see that El Nino is affecting our livestock production.
10:57.1
This year, the difference is we are bringing the technology and innovation into the event.
11:04.1
There are more than 200 exhibitors from around the world,
11:08.1
from local and also international,
11:10.1
to showcase that technology cover the livestock and aquaculture.
11:15.1
The interesting is how our farmers can handle with the change in temperature,
11:21.1
have the ventilation system,
11:23.1
have the cooling system,
11:26.1
and also how to do the farm in the smart way and sustainable and save the energy.
11:33.1
The other note is it's interesting that we need to help in promoting
11:40.1
and improving the development in livestock and aquaculture production
11:44.1
is the aim also to increase the food security in Philippines.
11:50.1
Alright, Rongpets.
11:52.1
For this year's exhibit,
11:53.1
we have that two events that are supposed to happen soon.
11:57.1
What are the unique features of these exhibits
12:00.1
and what kind of attendance are you expecting from the Philippines?
12:04.1
We expect about 10,000 attendance from the farmers around Philippines.
12:10.1
And the highlight of this year,
12:12.1
we are going to addressing on the biosecurity
12:15.1
like Sir Dante has mentioned on the disease.
12:19.1
So, the biosecurity is the key things in every farming.
12:24.1
Aquaculture and livestock has to be starting by the hygiene.
12:29.1
So, we are addressing that
12:31.1
and we are bringing ASEAN associations around Southeast Asia
12:36.1
to share what is their expertise
12:39.1
and what's their experience happening in their country.
12:43.1
And hopefully, it will help to setting the tone
12:47.1
that how we can cope up
12:48.1
with the challenge in Philippines.
12:51.1
And aside from exhibits,
12:52.1
you also have specific sessions and conferences,
12:55.1
small groups to talk about stakeholder issues.
12:59.1
What can we expect from the two days?
13:02.1
What are the most important perhaps gatherings
13:04.1
that you are pushing in the two-day exhibit?
13:08.1
The two-day exhibits and the features
13:11.1
and the seminar that happening in the show,
13:13.1
we want to highlight the new technology
13:17.1
with the livestock farming in Philippines.
13:21.1
And also, we would like to highlight
13:24.1
on the promoting egg consumption in the Philippines
13:27.1
which egg is the cheapest protein source
13:30.1
among other things else.
13:33.1
So, we want to promote that
13:35.1
and we want to highlight on farmers.
13:38.1
We need to start addressing more on biosecurity
13:42.1
to bring back our wild production
13:45.1
in the level of...
13:46.1
in the level of pre-ASF.
13:50.1
I'd like to go back to Asec Dante now.
13:52.1
What directions are both industries
13:54.1
or the agriculture industries taking in the future?
13:57.1
Because we know for a fact that,
13:58.1
you know, it's the President's marching orders
14:01.1
to include strengthening processing
14:04.1
and exports in agriculture
14:06.1
given these ventures could exponentially increase revenues
14:09.1
against just exporting raw produce.
14:12.1
Now, what initiatives are we seeing in this front?
14:14.1
And other activities
14:15.1
that could add value to our local products?
14:21.1
We cannot compete with other countries
14:23.1
if we are just going to sell...
14:26.1
Raw produce, right.
14:28.1
Like pork, chicken and...
14:32.1
pork and chicken.
14:34.1
So, the Department of Agriculture is working on
14:38.1
value adding of this product
14:42.1
so that we can do the export.
14:44.1
We can crack the export market.
14:47.1
And the Department of Agriculture has...
14:53.1
We have also attache in other countries.
14:58.1
And we work together to come up with
15:00.1
what is needed by other countries,
15:03.1
especially on processed meat
15:06.1
and other things that we can export
15:15.1
we are looking...
15:17.1
Right now, we are already exporting
15:21.1
a lot of animals.
15:23.1
These are not the basic animals,
15:36.1
flies and everything.
15:42.1
we can export these to other countries.
15:49.1
value added can happen with technology,
15:51.1
and some improvement in our processes.
15:53.1
And while we welcome technology to do that,
15:56.1
any improvement in production processes
15:58.1
and even systems must still be within
16:00.1
a sustainable farm development framework.
16:03.1
Now, is sustainability front and center
16:06.1
for industries right now in agriculture?
16:11.1
We are very focused on sustainability.
16:16.1
And we have this kind of system
16:19.1
in the Department of Agriculture and Bio
16:22.1
where we have the good animal husbandry practices,
16:26.1
animal antibiotic residue.
16:30.1
And at the same time,
16:32.1
we would like our farmers
16:35.1
to make use of their waste.
16:37.1
We're encouraging and...
16:40.1
having programs on waste management
16:44.1
and how to convert the waste into energy
16:47.1
so that we again have
16:49.1
this kind of sustainability,
16:51.1
especially in pig farms and poultry.
16:54.1
We are producing electricity
16:56.1
coming from biogas.
16:58.1
And this is from pig waste
17:00.1
and also chicken waste.
17:06.1
this is a perfect time to invite stakeholders
17:08.1
to participate in the export.
17:10.1
So perhaps you can give us reasons
17:12.1
why they should go.
17:14.1
So the Livestock Philippines
17:16.1
and Aquaculture Philippines
17:17.1
is taking place with free of charge
17:20.1
participation from all farmers in Philippines.
17:24.1
It is great opportunity that
17:26.1
you can learn about new technology
17:28.1
and also it is the knowledge platform
17:30.1
that you can get the sharing from expert
17:35.1
on sustainable farming,
17:39.1
on the technical aspect
17:40.1
you can adapt to your farm.
17:42.1
It is free of charge.
17:43.1
Just pre-register to visit the show
17:48.1
at World Trade Center Manila.
17:50.1
All right. That's good to know
17:51.1
it's free of charge.
17:52.1
Now, this may be an opportunity
17:53.1
considering it's free,
17:55.1
to invite also some local stakeholders,
17:59.1
those that are close to Metro Manila
18:02.1
to be part of this event.
18:03.1
Perhaps an invite from you as well.
18:06.1
I would like to encourage
18:08.1
the farmers to attend this
18:10.1
livestock program
18:12.1
and get in touch with
18:18.1
in order to come up with
18:20.1
the new, innovative,
18:23.1
more efficient program
18:25.1
for the livestock.
18:27.1
We cannot anymore,
18:29.1
we have to look forward
18:31.1
for a very competitive livestock
18:34.1
and this livestock affair
18:37.1
is the right venue
18:41.1
with the suppliers
18:44.1
of the best product
18:46.1
that we can use in the Philippines
18:49.1
to make our pigs and chickens
18:54.1
and to be competitive
18:59.1
All right. On that note,
19:00.1
we thank you so much
19:01.1
Asec Dante Palavrica,
19:03.1
Secretary for Philippine
19:05.1
Agriculture Department
19:06.1
and Rongpech Shitanwat,
19:09.1
Country General Manager
19:10.1
for Informa Markets.
19:11.1
Good luck with your events.
19:18.1
All right. Moving on to more news.
19:19.1
GoTime has acquired
19:20.1
the Philippines' biggest salary lender,
19:22.1
the Gokong Waste Digital Bank
19:24.1
announced Tuesday
19:25.1
its stakeholders,
19:26.1
JG Summit and GoTime
19:29.1
have bought SAVI.
19:33.1
the acquisition will help
19:34.1
it sell more payroll-enabled loans
19:37.1
and boost its path
19:38.1
to profitability.
19:41.1
GoTime Bank's ambition
19:43.1
is to become the largest
19:44.1
consumer retail bank
19:46.1
And I think if you really
19:47.1
want to be effective
19:49.1
you have to get into
19:50.1
payroll relationships.
19:51.1
And I think what makes it
19:52.1
that a bit trickier
19:53.1
than most markets
19:55.1
is that in the Philippines,
19:58.1
don't actually choose
19:59.1
their payroll account, right?
20:00.1
The corporate dictates it.
20:02.1
so while we actually
20:03.1
have a payroll offering,
20:04.1
we've been getting
20:05.1
some good traction early on,
20:07.1
that B2B sales cycle's
20:09.1
very slow, right?
20:17.1
had an incredible track record
20:18.1
over the last seven years.
20:19.1
They've, you know,
20:20.1
Liam and team have signed up
20:21.1
over 170 corporates,
20:23.1
have access to over
20:24.1
half a million salaried employees
20:26.1
with their lending proposition.
20:28.1
So we're very excited
20:30.1
to kind of combine
20:31.1
the consumer banking proposition
20:33.1
that's leading from GoTime
20:34.1
with the lending proposition
20:36.1
and the relationships they have.
20:40.1
The Marcos administration
20:42.1
secures the commitment
20:43.1
of the intergovernmental
20:45.1
finance institution OPEC Fund
20:47.1
to address right-of-way
20:48.1
acquisition issues
20:49.1
in its big-ticket
20:50.1
infrastructure projects.
20:52.1
Such issues are said
20:53.1
to hinder the construction
20:55.1
of key infra projects
20:56.1
including the Metro Manila subway.
20:58.1
The finance department
20:59.1
announced Tuesday
21:01.1
made that commitment
21:03.1
of the World Bank
21:04.1
International Monetary Fund's
21:06.1
in Washington, D.C.
21:10.1
also expressed interest
21:12.1
the Public Financial Management
21:15.1
which aims to ensure
21:16.1
the effective delivery
21:17.1
of public services,
21:18.1
especially for the poor.
21:24.1
The Philippines makes its return
21:25.1
to the international bond market.
21:27.1
It announced on Tuesday
21:29.1
dual-tranch U.S. dollar
21:33.1
the Marcos administration
21:35.1
which has a tenor
21:38.1
sustainability tranche.
21:40.1
The initial price guidance
21:42.1
for the 10-year tenor
21:46.1
plus 120 basis points.
21:50.1
sustainability bond,
21:56.1
of the bond issuance
21:58.1
for general budget financing.
22:00.1
Finance Secretary Ralph Reck
22:04.1
government is seeking
22:05.1
to raise as much as
22:06.1
two billion dollars
22:07.1
from the bond sale.
22:08.1
He added the offer
22:09.1
is part of a plan
22:11.1
five billion dollars
22:13.1
from overseas markets
22:18.1
The World Bank extends
22:19.1
its support to local governments
22:20.1
in the Philippines.
22:21.1
The international financial
22:24.1
the Union of Local
22:25.1
Authorities of the Philippines
22:27.1
to help address challenges
22:29.1
faced by local governments.
22:30.1
Including infrastructure
22:35.1
the need for capital investments,
22:37.1
technical expertise,
22:38.1
and direct partnerships
22:40.1
with the World Bank
22:41.1
to address resource constraints
22:43.1
and enhance service delivery.
22:46.1
Now, the group asserts
22:47.1
there is a need for government
22:48.1
to empower its local arms,
22:51.1
is key to the country's
22:56.1
We now have the latest
22:57.1
Philippine jobs print.
22:58.1
The country's unemployment rate
22:59.1
climbs to 3.9% in March
23:00.1
from the 3.5% in February.
23:01.1
The Statistics Bureau says
23:02.1
this is equal to 2 million
23:03.1
jobless Filipinos.
23:04.1
The underemployment rate
23:05.1
meanwhile was down
23:07.1
from the previous 12.4%.
23:08.1
The number of those
23:11.1
for more hours of work
23:12.1
stood at 5.4 million.
23:19.1
of jobless Filipinos
23:20.1
in the Philippines.
23:24.1
of jobless Filipinos
23:25.1
in the Philippines
23:28.1
of jobless Filipinos
23:29.1
in the Philippines
23:34.1
by an advertising group
23:38.1
the midterm elections.
23:39.1
Lady Vicencia reports.
23:40.1
As the election season nears,
23:41.1
political advertising
23:42.1
is again expected
23:43.1
to occupy various media.
23:45.1
of the Ad Standards Council,
23:46.1
Kapisanan ng mga Broadcaster
23:48.1
Chairman Ruperto Nicdao Jr.,
23:49.1
reminded the public
23:53.1
on digital media.
23:56.1
that the government
24:00.1
of jobless Filipinos
24:01.1
in the Philippines.
24:03.1
of the organizations
24:08.1
of the regulatory body.
24:13.1
is to remind people,
24:15.1
during elections,
24:16.1
to be more discerning
24:17.1
about the messages
24:18.1
that's put out there.
24:23.1
traditional media
24:24.1
because meron tayong mga
24:27.1
The self-regulatory body
24:29.1
of the advertising
24:30.1
industry reiterated
24:35.1
consumer protection.
24:39.1
of advertisements
24:41.1
on digital media.
24:47.1
on social behavior.
24:49.1
Whatever we show,
24:51.1
what I've been mentioning
24:54.1
paulit-ulit siyan,
25:26.0
Whatever we put out there, whether it's advertising or content, what you do in fact, you're in media, has to be truthful.
25:35.8
Especially in this age where we have a lot of disinformation, well there's some in traditional media but more disinformation happens I know in digital media.
25:48.5
Former Senator Francisco Kit Tatad, who was also co-chairman of the Mass Media Advisory Council, advised public officials to present ideas and platforms in their ads.
26:00.1
What we need to do, if you are in public office, is to be able to give our countrymen a vision of what we can become. A vision of what to aspire for.
26:16.6
Hindi tayo nagbabangayan.
26:18.5
The former lawmaker was among the 22 honorees of the ASC for pioneering self-regulation in the advertising industry.
26:32.4
Tatad adds he is in favor of allowing foreign ownership of advertising companies in the country.
26:38.3
It has proven to the world that the Filipinos can do a very good job at it and that they can stand competition from the foreign.
26:48.8
That's why we are ready to face foreign competition.
26:54.6
That's why there is a move now in Congress to open up ownership of media and advertising to foreign competition.
27:07.8
I have always been in favor of that because nakikita ko yung puhunang dayuhan.
27:18.5
At yung talinong dayuhan dapat pumasok sa Pilipinas para makatulong sa atin.
27:23.6
Hindi ko nakikita yung threat of being stifled by the foreigners.
27:32.3
Yung Pilipino mas magaling naman kasa mga ibang lahi.
27:37.6
ASC marked its 50 years of self-regulating the advertising industry, which it believes to be more efficient in resolving complaints
27:46.2
and cheaper compared to being regulated.
27:48.5
If you don't self-regulate, that means government will have to regulate.
27:56.1
And based on the experiences of all companies involved in the industry, that is not only expensive, but it's very slow.
28:03.7
It's inefficient, and not because government is increasingly efficient, but they're concerned with a lot of other things
28:11.0
rather than regulating advertising content.
28:14.4
In bringing its pioneers together, the council looks to renew its system.
28:18.4
ASC marked its 50 years of self-regulating the advertising industry, which it believes to be more efficient in resolving complaints and cheaper compared to being regulated.
28:18.5
ASC marked its 50 years of self-regulating the advertising industry, which it believes to be more efficient in resolving complaints and cheaper compared to being regulated.
28:48.3
That I'm sure we will also have to bite a garlic by the fork.
29:18.3
Welcome back. You're still watching Market Edge.
29:38.3
The headlines, the Philippine police chief rules out a loyalty check in their ranks amid an alleged plot by some police officials to overthrow the government.
29:48.3
Top Philippine conglomerates team up with government to preserve a critical waterway connecting Luzon and the Mindoro Islands.
29:57.5
Time to zip through some of our top headlines now from major business papers from Business World S&P New Energy of Mani Pangilinan.
30:06.4
It says five foreign firms are looking to invest in Terra Solar, the firm building a 200 billion peso solar project in Nueva Ecija.
30:15.4
And from Business Mirror, Australia launches in the Philippines the second phase of its program to empower women in the workplace and help invest in women-owned and led businesses.
30:27.3
And from the Philippine Star, the Philippine ports authorities investing 839 million pesos to build dedicated infrastructure in the region.
30:38.8
The Philippine Stock Exchange kicks off trading this Wednesday.
30:42.5
The local bourse opens at 66.15 and will attend.
30:45.4
The Philippine Stock Exchange will attempt to recover from its slump in the previous sessions.
30:49.4
Now, Gabriel Aguila of Uni Capital Securities joins us for his trading guidance for the middle of the week.
30:56.8
Hi, Gabriel. Welcome to Market Edge.
30:59.1
Hi, good morning. Happy to be here.
31:00.8
All right. Let's talk about inflation first.
31:03.0
For April, it wasn't as bad as expected.
31:05.8
Now, is the market happy with the latest numbers?
31:08.0
What showed in the way sentiment is right now at the PSEI when it comes to the latest inflation print?
31:16.1
Inflation coming in yesterday at 3.8% in our view was quite positive being in the low end.
31:22.2
Market reception has been lukewarm so far.
31:25.3
I think we finished a little bit of a contraction yesterday.
31:28.6
Up until now, we're just trading nearly flat so far.
31:31.4
But I think most of that is attributed to the anticipation of first quarter GDP figures due for tomorrow.
31:39.6
Putting two together would be what would definitely catalyze market sentiment.
31:45.4
So, a more certain direction.
31:48.4
All right, Gabriel. You know, inflation will remain elevated.
31:51.2
That is anticipated at least for this quarter and next.
31:55.5
Now, are we likely now to miss this year's target for inflation?
31:58.6
Is that being priced in by the market?
32:01.5
Target for inflation is for inflation to be at around 3.9 to 4.1% at least for the first half of the year.
32:10.3
Going into the second quarter, we're actually going to be entering a low base period.
32:15.4
To the first low that it had last year by July at around 4.7%.
32:20.4
So, the lower base does give a little bit of a risk for a higher inflation, especially with inflationary pressures going on.
32:29.7
But so far, fortunately, we are staying below the 4% target or 2 to 4% target band by the BSP.
32:38.1
And it's for us quite positive and we're still maintaining our view of positive outcome for the year.
32:43.9
And I don't know if investors.
32:45.4
Also feel that way.
32:46.6
If you look at the stock market now, trends from last year, in fact, were started strong and then fizzled out towards the second quarter and range traded at least for the last quarter where trades and prices eventually picked up.
33:00.5
Now, so far, the last four months this year seem to mirror that kind of pattern.
33:05.2
How likely are we to achieve now the same finish in 2024 given that trend?
33:11.3
Compared to last year, things are quite different now.
33:13.9
Last year, we were still.
33:15.4
Going through the peak of inflation, we were still having rate hikes by the BSP and the US Fed, and there was a lot of uncertainty on how high interest rates would go given the trajectory of inflation at that period.
33:29.6
For this year, more of our retracement comes at an uncertainty of when rate cuts would be.
33:35.5
But as far as the trajectory of heading towards rate cuts are going, yes, we are heading there.
33:40.2
So, in terms of weakness this year compared to last year, this is more of a success.
33:45.4
When shall correction?
33:47.0
And we still expect a positive finish for the PSE towards the end of the year, especially as rate cut views begin to reappear in the horizon.
33:56.7
And how positive is that?
33:58.3
I mean, we've spoken to some analysts.
34:00.3
The consensus, of course, is 8,000.
34:02.2
How far are you from that number for 2024 PSEI finish?
34:07.6
Going into 2024, we were actually looking at the current risks considered.
34:12.4
And we know that there is a possibility.
34:15.4
We're at 8,000 view.
34:16.5
But we have our target at at least 7,200 for the PSEI this year,
34:21.7
which we nearly almost achieved already in the first swing of the rally this year, near 7,000 points.
34:28.4
But that is contingent to rate cut timings getting more certainty as we move from the month-to-month outcomes of inflation.
34:41.3
Let's look at the market right now.
34:43.5
You know, the Bourse is up.
34:45.4
About 5% again from the recent rallies, gains, and the fact that we wiped out a lot of those gains in the past three months.
34:56.0
Now, are investors likely to pocket profits now at these levels, at these current levels?
35:01.6
How does that impact direction short-term for this market?
35:06.7
Currently, we're treating the 6,400 to 6,600 levels as the support.
35:45.1
and we have a better view on rate cuts towards the end of the year,
35:48.6
which we're currently estimating at fourth quarter of 2024,
35:52.8
this would be, for us, a good time for accumulation.
35:56.6
All right. Now, as far as investors are concerned,
35:59.4
you know the latest inflation print came out yesterday,
36:02.0
and another thing to look forward to or dread is the GDP figures.
36:07.6
These are due out tomorrow.
36:09.6
What are your expectations for GDP?
36:11.4
How much do you think did we grow last quarter?
36:13.5
Well, so far this year, I think definitely the expectations from late last year is less now.
36:21.8
We're looking at around 5.8% to 6% for the first quarter of 2024,
36:27.4
which we still think is decent growth for Philippine GDP
36:30.1
given the current headwinds that we're currently going through right now.
36:34.2
And are you seeing GDP now significantly tempered by high borrowing rates?
36:38.9
We know for a fact that these rates are here to stay for longer.
36:43.5
Relative to the original target of the government of the 6.5% to 7.5% growth,
36:49.2
yes, there's still a bit of tempering in terms of GDP growth.
36:53.6
However, again, if we're looking at it at around 5.8% to just 6% on that lower end,
36:58.7
there is still some decent growth that's getting logged in.
37:02.9
And we're seeing it that despite the high interest rate environment,
37:06.4
we are seeing decent growth coming out of Philippine GDP.
37:09.9
It's also being reflected by the first results,
37:13.5
first set of earnings that are coming out for Philippine corporates
37:16.4
that we are still going through a period of growth despite the headwinds.
37:21.1
Gabriel, you know the jobs numbers just came in.
37:23.6
It is up 3.9% in March versus 3.5% in February.
37:28.7
How much of an indicator is this of a slowing economy,
37:31.5
the latest rise in jobless numbers?
37:34.5
Well, right now, I know that our numbers are still higher than last year.
37:37.6
So we're not still looking at it as a slowing economy.
37:40.7
We're looking at it as just the ebbs and flows moving in.
37:43.5
into the summer season for the year.
37:46.5
Lastly, what is your trading guidance for the market
37:48.9
in the remaining trading days of the week?
37:51.9
Remaining trading days of the week as we go through support levels
37:56.1
where we're now currently looking at potential catalysts for the Philippine GDP.
38:01.5
For us so far, it's been positive with inflation.
38:04.3
Given that we are moving on a month-to-month basis
38:07.1
with inflation outcomes relative to rate cut guidance,
38:13.5
some points of profit-taking would come when we start to hit resistance.
38:18.0
So accumulation of the low levels and a little bit of profit-taking
38:22.3
as you get good returns while we're still awaiting the next market development on inflation.
38:29.4
Gabriel Aguila, Head of Research at Uni Capital Securities Incorporated.
38:32.8
Thank you so much for joining us this morning.
38:34.9
All right. Thank you.
38:36.8
We now turn the spotlight to a multinational personal care firm
38:40.6
as it ramps up efforts to help address the situation.
38:43.3
Severe plastic pollution in the Philippines.
38:45.8
ANC's Bettina Magsaysay spoke with the L'Oreal Group
38:49.4
about its commitment to the so-called green beauty.
38:55.1
So joining us now, we have with us Mr. Visme.
38:58.2
We have Yannick and we have Jared from Watson.
39:00.5
So let's first start with you, Mr. Visme.
39:03.2
Let's first talk about the beauty, the current state of the beauty
39:07.1
and the cosmetic industry in Asia amid inflation.
39:11.9
Do you see shrinkage?
39:13.3
Do you think shrinkflation has gotten into the company?
39:16.6
Well, in our case, so firstly, thank you very much for having me here.
39:20.3
I'm really happy to be a part of the beauty industry,
39:22.8
which is one of the most dynamic industries and it continues to be dynamic.
39:27.0
L'Oreal, as you know, has been a company that's been in the beauty industry
39:29.5
for the last 115 years.
39:31.5
And we have seen numerous challenges, war, etc. in different parts of the world.
39:36.7
And one industry which manages to keep ahead of everything and keep on growing is beauty.
39:42.3
It's the case today.
39:43.3
It's the case today as well in beauty as a category.
39:45.1
And that's the case across the world.
39:46.8
It's the case in Asia as well.
39:48.8
It continues to grow.
39:50.5
And to answer your question very directly in terms of shrinkflation,
39:53.8
has there been any shrinkflation within L'Oreal?
39:55.9
No, there hasn't been.
39:57.3
At L'Oreal, we are very conscious of our consumers, their needs,
40:01.9
and the ability to acquire our products.
40:04.8
Of course, our products are not the cheapest.
40:06.6
They are at a higher end of the price spectrum if you take all the L'Oreal brands.
40:10.4
But we are very proud that the value we deliver,
40:13.3
one of these price points, is exceptional
40:15.3
because we put very serious science and research behind our products.
40:19.6
We have by far the biggest research facility in the world.
40:22.1
We invest over a billion euros every year.
40:23.6
We have 4,000 scientists.
40:25.1
So some of the best innovations in beauty as an industry in the last 30 years
40:28.2
have come from L'Oreal.
40:29.5
And then we have a portfolio of very powerful brands.
40:32.0
We have 37 international brands.
40:33.8
So when you put these two things together,
40:35.8
you have the ability to increase your prices
40:38.1
when there is inflation of commodities,
40:40.4
which is what we could do.
40:41.7
So we don't need to shrink.
40:43.3
We don't need to shrink the inflation.
40:44.7
And fortunately, we haven't had to.
40:46.3
That's great. That's great.
40:47.3
We're here now with L'Oreal.
40:49.3
We're here with Watson.
40:51.3
So we have this new project called the Green Joint and Business Project
40:54.3
between L'Oreal and Watson.
40:56.3
So maybe you guys can tell us a little bit more about that.
40:58.3
So I can tell you a little bit about L'Oreal's commitment towards sustainability globally
41:02.3
and what we are doing in the region.
41:04.3
And then I'll hand over to Yannick and Jared
41:07.3
to really tell you a little bit more about it.
41:09.3
So L'Oreal as a company has been very committed to sustainability.
41:12.3
So L'Oreal as a company has been very committed to sustainability.
41:13.3
And we've been on this journey for over 20 years now.
41:16.3
We were one of the first companies worldwide to go down the route of sustainability
41:20.3
because we feel that the impact of our activities on the climate,
41:23.3
on the consumers is very important.
41:25.3
And we want to make sure that we have a positive impact.
41:28.3
And very importantly, because it's the right thing to do.
41:30.3
So L'Oreal is one of the most recognized companies worldwide
41:33.3
in the space of sustainability.
41:35.3
For example, we are the only company that has got a triple A from CDP
41:39.3
for eight years in a row across all industries.
41:42.3
And that's something which is at the heart of my region as well,
41:44.3
South Asia Pacific, Middle East and North Africa.
41:47.3
Because this part of the world is one of the most impacted by climate change,
41:50.3
by gender inequality, by economic challenges.
41:53.3
So we decided to put sustainability at the heart of every decision that we take.
41:57.3
For instance, all our sites across this region at the end of last year went to renewable energy.
42:02.3
So every manufacturing site, every administrative site, which is offices, warehouses,
42:07.3
they are now using renewable energy, which is a big commitment.
42:10.3
This is two years ahead of L'Oreal's commitment.
42:12.3
Which was 2025, we did it at the end of 2023.
42:15.3
So that's something that we are very proud of.
42:17.3
Equally, we have a number of causes to help women who are coming from economically challenged households,
42:23.3
to teach them beauty skills, to help them get jobs.
42:26.3
We are working to restore natural habitat like mangroves in South Asia, Southeast Asia,
42:31.3
the Great Barrier Reef in Australia.
42:34.3
We have L'Oreal Fund for Women, which is now helping,
42:38.3
which is now working with charities and on-the-ground organizations,
42:41.3
to help vulnerable women and is now impacting positively 1.2 million women.
42:46.3
So there's a lot of work we are doing in the region and we are very proud of it.
42:49.3
And then I hand over to Yannick to tell you a little bit more about this.
42:52.3
Yannick, the project, please.
42:55.3
Well, you know, it starts with a dream and it's now becoming reality.
42:59.3
So that's the first thing that I wanted to say.
43:01.3
So, you know, in business, we do joint business plans.
43:04.3
This is something that we do every year.
43:06.3
You know, we partner between companies to basically foresee what we are going to do.
43:11.3
For the year to come and how we basically are doing business.
43:15.3
But this time we decided to do it a little bit differently and to add to the financial objective,
43:20.3
some extra financial objective, which basically are about sustainability.
43:25.3
So we really looked at what mattered for L'Oreal in the L'Oreal for the Future program that we have,
43:33.3
as well as the program of Watson on sustainability.
43:36.3
And we actually, we were quite surprised in finding so many similarities.
43:41.3
In between our programs, the both programs are about people, about the planet and about products.
43:48.3
And then when we look at all the program, it was very easy to find, you know, which one we were going to focus.
43:53.3
So basically on the planet part, we have a new program that is starting actually today.
43:58.3
Correct. That is called Recycle for Reward, where we are piloting it in 23 stores right now,
44:05.3
which basically incentivize, you know, people to do the right thing and to bring, you know, their plastic bottle.
44:11.3
And in exchange, we will give them some reward, you know, like kind of in order to motivate them to do the right thing
44:16.3
and to, you know, to collect that plastic.
44:19.3
This will be in turn, you know, recycled by, you know, our partner for recycling, you know, which is also a Filipino company.
44:28.3
The second piece that we are doing is actually on people.
44:31.3
And on people, we are joining force with an initiative that L'Oreal has launched, you know, last year called L'Oreal Digital Beauty Activity.
44:41.3
Which basically aim at teaching, you know, social commerce skills to women in order for them to become entrepreneur and make a living.
44:50.3
You know, with social commerce, as you know, influencers and creators are now starting to make a lot of money, correct?
44:56.3
In selling product on social commerce.
44:58.3
So this is the other initiative that we are partnering in.
45:01.3
We are also going to support some of the initiative of Watson, you know, in their reach, you know, like to people with invulnerable conditions.
45:09.3
And then, this is our second initiative.
45:11.3
And the other piece that we are doing is about product.
45:14.3
So Watson has launched an initiative called Sustainable Choice to show to their, actually, consumer which products are really, you know, walking the talk in terms of sustainability with labels.
45:27.3
So our products are actually very competitive to have a lot of these labels.
45:32.3
So we will be participating into this program.
45:36.3
And lastly, all our material in the point of sales.
45:40.3
You know, the display.
45:41.3
Where you can see our products are all 100% eco-design where that means that basically we use either, you know, less material, less weight, but also materials that have a better footprint from an environmental standpoint.
45:55.3
I think L'Oreal has a whole sustainability supply chain.
45:59.3
I think you have to make sure it's not just from start.
46:02.3
It's from start to finish.
46:03.3
You want to make sure that the whole project is sustainable and environmentally friendly.
46:07.3
That's in the heart of L'Oreal, it seems like.
46:10.3
Actually, actually, I would like to build on what you're saying because we were, you know, as you know, you know, better than I do, plastic is really, plastic waste is really an issue, you know, for the Philippines.
46:21.3
Actually, for many countries in Asia.
46:24.3
And we were very inspired by the government last year who said very boldly, you know, you need to start, you know, recover the plastic footprint that you're putting out there.
46:37.3
The products that are bought by our consumers.
46:38.3
Who is taking them back?
46:40.3
So, basically, the EPR bill set up by the government for year one was 20% of all the products, all the plastic, you know, waste that has been put outside, you know, like need to be collected.
46:52.3
And putting the onus on us, you know, to basically do the work.
46:56.3
We were very inspired by that.
46:58.3
And we said, what about doing even more?
47:00.3
What about recovering 100% of all the plastic footprints that have been there?
47:06.3
But not only recovering, but also recycling.
47:08.3
Because recovering one thing, correct?
47:10.3
But where do you put this plastic after that?
47:12.3
So, we recover it at 100% through upcycling, but also recycling methodology with a partner called PCX that is helping us to achieve this.
47:23.3
And this is not just to L'Oreal products.
47:25.3
It's to all cosmetic products.
47:27.3
This is for any, it's basically the equivalent of the plastic waste that we have.
47:32.3
Because it's very difficult to pinpoint which product is mine, which product.
47:35.3
So, it's any kind of plastic waste.
47:37.3
But any kind of plastic we recover equivalent to the tons that we have put out there.
47:43.3
And the recycle and rewards program, is that for Watsons as well?
47:48.3
Thank you, Bettina, for the question.
47:50.3
Now, the recycle for rewards program is a starting point of how we can make it easy for our customers.
47:57.3
Especially with the network of Watsons of around 1,100 plus stores nationwide already.
48:03.3
And this is a good starting point.
48:05.3
Where customers can easily deposit any empty bottles.
48:10.3
They don't have to check the labels.
48:12.3
Is this PET? Is this PVC?
48:15.3
They just put the bottles in.
48:17.3
They automatically get a reward, which is a 50 peso coupon.
48:22.3
And they can actually avail of different products.
48:25.3
That is also a sustainable choice.
48:28.3
And what we love about this is the collaboration between Watsons and L'Oreal is very strong.
48:35.3
In fact, just a trivia, Bettina.
48:37.3
But Watsons' sustainability practices started 185 years ago.
48:43.3
When our founder, Alexander Skirving Watsons, there was an issue of cholera outbreak in Hong Kong back then.
48:52.3
And his goal was to put clean fresh water in glass bottles.
48:58.3
And he would give that to children, to the hospitals.
49:02.3
And that's where the sustainability.
49:05.3
The sustainability values of Watsons started.
49:08.3
So here in the Philippines, we are proud to be partnering with L'Oreal in their sustainable choice practices.
49:15.3
In their planet practices.
49:17.3
And we are more than happy to be their ally in this, in our goal to be able to have a much more sustainable planet.
49:29.3
And maybe for our last words, I mean, how important is it, Vismay or Yannick or Jared,
49:34.3
anyone can just put in their input.
49:36.3
How important is it for private companies to join in the sustainability cycle?
49:42.3
How important is it for them to be able to recycle, to be eco-friendly as well?
49:46.3
And it's not just the local government unit.
49:48.3
You don't have just the government, but the big players as well coming in to making sure that the environment is safe.
49:54.3
So probably from the most loved health and beauty retailer in the country, I can probably say that our responsibility to the environment,
50:02.3
especially the Philippines, is critical.
50:06.3
With our wide network, with millions of products sold on a monthly basis,
50:12.3
we really have a responsibility to make sure that our customers choose the best product,
50:18.3
not just for their everyday essentials, but even the best product for the environment.
50:23.3
And what we have done is we tried to lemonize what are sustainable choices.
50:29.3
We've also made it affordable.
50:31.3
To make sustainable choices easy to adapt.
50:34.3
And I think that's an important thing.
50:37.3
Now, going to businesses, Bettina, it's critical that businesses such as Watson's and L'Oreal are working together
50:45.3
because when we work together, we create much more better effects for the environment.
50:54.3
So our belief at L'Oreal is that, firstly, climate change is an existential threat.
50:59.3
It's a big challenge that the world faces today.
51:01.3
And big challenges have to be able to solve big challenges.
51:06.3
All the companies, all the resources, all the actors have to come together.
51:10.3
Big corporation has big responsibility as well.
51:13.3
We cannot say it's only for the government or it's only for NGOs or it's only for consumers.
51:17.3
So at L'Oreal, we very strongly believe that these things have to be solved by everybody.
51:21.3
And we like to come together with like-minded partners like Watson's to join forces because like Jared rightly said,
51:28.3
one plus one in this case means 11.
51:30.3
We can create much, much stronger impact and that's what we intend to do.
51:33.3
Okay, well, great. Thank you.
51:36.3
Yeah, please, go ahead.
51:37.3
Always for the lady.
51:39.3
Now, one thing that comes to my mind when you're asking that, it's actually, does it make sense?
51:44.3
Of course, it does because it's the right thing to do.
51:48.3
And the second is by being here today with you.
51:51.3
What we are hoping to do is not to be, we are happy to be the first ones to do this Green GBP.
52:01.3
What we hope is that we will not be the only one.
52:04.3
Because indeed, we have this responsibility to be also the catalyst for change.
52:08.3
And I would leave that with, I will leave this with that.
52:10.3
I was going to say that.
52:12.3
Maybe other industries will follow in your footsteps and in your trend.
52:17.3
By no mean, we want to be just the first.
52:18.3
We don't want to be the only one.
52:20.3
Maybe just an example.
52:22.3
Just to kick-start it.
52:25.3
Thank you very much, Bisme.
52:26.3
Thank you very much.
52:27.3
Ms. Yannick and Jared.
52:28.3
Thank you so much.
52:30.3
And that's it for the show.
52:31.3
I'm Stanley Palizana.
52:32.3
Thank you so much for watching.
52:33.3
You can listen to our interviews again on the ANC Market Edge podcast available on Spotify.
52:39.3
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52:44.3
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52:46.3
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52:48.3
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