three-time rotary club of manila journalism awardee 2006, 2010, 2012
U.N. Media Award 2008
BusinessMirror
www.businessmirror.com.ph PAPAL VISIT 2015
10 DAYS
week ahead
ECONOMIC DATA PREVIEW Inflation (December)
January 6, Tuesday n November inflation: The Philippine Statistics Authority (PSA) announced last month that the growth of consumer prices last November dropped to 3.7 percent, from 4.3 percent in the previous month. This is nearer the government’s low end of the target range for the year, at 3 percent to 5 percent. Among the largest decreases in prices that pushed inflation downward during the period were seen in oil and food prices. n December inflation: Inflation was seen to go further south at the end of 2014, following the Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr.’s forecast of inflation hitting 2.4 percent to 3.2 percent in December last year. In his statement, Tetangco said their lower forecast for the month was on the assessment of lower rice prices, jeepney fares, power rates and continued rollback of oil prices during the period.
Manufacturing (November)
January 9, Friday n October’s manufacturing data: The manufacturing data last October, as reported by the PSA, hit 7.5 percent, slowing down from the 21.1 percent seen in the same month in 2013. The main sources of the manufacturing sector during the period were printing, fabricated metal products, beverages, paper and paper products, and nonmetallic mineral products. n November manufacturing data: In a recent economic research note, Moody’s Analytics said the country’s manufacturing sector was seen to slow down further at the end of 2014, due largely to the slower consumer demand as compared to the previous year, as well as the bad weather, which hampered productions at the second half of the year (See related story on A8). Bianca Cuaresma
A broader look at today’s business
n Sunday, January 4, 2015 Vol. 10 No. 87
P25.00 nationwide | 7 sections 32 pages | 7 days a week
DOTC rejects 2 proposals to replace ‘dilapidated’ Naia
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By Lorenz S. Marasigan
HE government has rejected two separate proposals to build a multibillion-dollar airport that would replace the “dilapidated” aviation hub in Manila. Transportation Secretary Joseph Emilio A. Abaya said his agency has disapproved the $10-billion proposals of San Miguel Corp. (SMC) and All-Asia Resources & Reclamation Corp. (ARRC), as the Aquino administration is not bent on pursuing unsolicited deals. He explained that auctioning off the project would remove the grueling process of subjecting it to a competitive challenge. “For such a huge facility, we are better off conducting a transparent bidding than an unsolicited
A
S the economy continues to ride high on the back of investmentrating upgrades and with the strong economic fundamentals in place, a property consulting firm’s top executive sees that the real-estate growth experienced in 2014 will continue this year and beyond. “The exact rate of growth is unclear at this time, but it will undoubtedly form a significant portion of the estimated GDP [gross domestic product] growth of around 6 percent plus for 2014,” Jones Lang Lasalle COO Lindsay Orr told the BusinessMirror. “For 2015, further growth is envisaged along the lines of 2014.”
While bright prospects are ahead of the property sector, the office segment for now, though, looks particularly rosy, given the increasing demand for space from business-process outsourcing companies and other traditional-office users. Lease rates are projected to at least maintain their current levels and, in some instances, will keep on rising owing to strong market demand. Precommitments will continue for office space, as large-scale tenantfirms vie for the same space and become more focused in pursuing their space requirement. “Precommitting prior to completion guarantees them the expansion space likely to be needed over the next
See “Real Estate,” A2
US factories grew at slowest pace in 6 months in December By Christopher S. Rugaber The Associated Press
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ASHINGTON—US factory activity grew at the slowest pace in six months in December, weakened by declines in orders and production. Yet, growth was still healthy, a sign manufacturing may help drive the economy’s expansion in 2015, as it did last year.
PESO exchange rates n US 44.6170
a wilderness of mirrors in United states-Cuba swap
proposal, and subject it to Swiss challenge,” he explained. A Swiss challenge allows other groups to dispute the initial proposal and offer a better deal. The original proponent, however, has the right to match the highest offer to pursue with the project. The process usually takes about a year to complete. SMC proposed to build a 1,600-hectare international gateway somewhere in the south of Metro Manila. The airport, which Continued on A2
Consultancy firm sees vibrant growth of real-estate market By Roderick L. Abad
Spy wars
The Institute for Supply Management, a trade group of purchasing managers, said on Friday that its manufacturing index fell to 55.5 in December, from 58.7 in November. Any reading above 50 signals expansion. November’s figure was just below a three-year high reached in October. December’s reading is the lowest since June. But it is also close See “Factories,” A2
New course on Cuba
President Barack Obama has enacted a historical policy to renew relations with Cuba for the first time in 54 years Cuban Revolution
Bay of Pigs invasion
President Kennedy sends 1959
CIA-sponsored Cuban exiles to overthrow Castro 1961
1962
Full embargo
America imposes a complete economic embargo on Cuba
Fidel Castro overthrows President Fulgencio Batista, establishing a Socialist state. Castro nationalizes all foreign assets and hikes taxes on American imports.
1966 Cuban Missile Crisis
Cuban Adjustment Act U.S. Congress enacts a law allowing anyone who flees Cuba and reaches the U.S. the opportunity to pursue citizenship
Cuba allows the Soviet Union to build a missile base on the island in secret, igniting a 13-day stand off. Negotiations between the U.S. and USSR led to the withdrawal of nuclear missiles from neighboring countries
Mariel Boatlift / mass migration
Cuba’s economy suffers from a spike in oil prices causing many to migrate. 1980 The Mariel boatlift is established, helping as many as 125,000 Cubans migrate to Florida
Arrest of the 1996 Cuban Five Five Cuban counterintelli- 1998 gence officers are charged 1999 with conspiracy to commit 2000
espionage in the U.S. They were found guilty in 2001
President Raul Castro
Fidel Castro retires after a long illness, handing his presidency over to his brother, Raul Castro
2008 Lift on travel restrictions 2009 President Barack Obama eases restrictions on travel to Cuba
U.S. to end 2014 Cuban isolation
President Barack Obama declares embargo a failure and enacts a policy to re-establish diplomatic relations with Cuba
Source: Council on Foreign Relations, Reuters Graphic: Tribune News Service
Helms-Burton act passed
The U.S. tightens the embargo on Cuba and attempts to weaken Cuban ties with foreign investors. The act penalized foreign companies doing business with Cuba
Elian Gonzalez incident The Clinton administration decides to send back 6-year-old Gonzalez after an attempt to immigrate to the U.S. by boat
Venezuela and Cuba
President Hugo Chavez of Venezuela and Fidel Castro sign an agreement to send oil to Cuba at a heavily discounted price in return for Cuban support and services in technical fields such as education, science, technology and health care
Arrest of Alan Gross
Alan Gross is arrested in Cuba and sentenced to fifteen years in prison after importing satellite phones, computers and modems to the country
Release of prisoners
Alan Gross is released from Cuban prison and 4 Cuban prisoners are released from the U.S.
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ore than two weeks have passed since the White House announced that it had traded three imprisoned Cuban intelligence officers— including one convicted of conspiracy to murder—for a super spy held in a Havana prison whom President Barack Obama labeled “one of the most important intelligence agents that the United States has ever had in Cuba.” But since the president’s announcement, there’s been only silence. Nothing more has been said of the spy or his accomplishments. Of the people released from prison as part of the deal between Washington and Havana, the three Cuban spies and US Agency for International Development contractor Alan Gross have all appeared on television to talk exultantly about their release. GlobalEye»C3
n japan 0.3706 n UK 69.4062 n HK 5.7489 n CHINA 7.1813 n singapore 33.6961 n australia 36.2063 n EU 54.3390 n SAUDI arabia 11.8899 Source: BSP (29 December 2014)