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THE WE TELL IT LIKE IT IS D AILY NEWS Vol. 11 No. 219 November 26, 2010 Phil. Copyright 2002 THE WALLACE BUSINESS FORUM, INC. accepts no liability for the accuracy of the data contained in this report. WEATHER FORECAST The Nation METRO MANILA 24°C to 31°C • PH prepares for outcome of U.S. – S. Korea Moderate Northeast drill Manila Bay: Moderate • PCSO integrity to be protected Currency Currency in 1 Peso in COUNTRY • Search for new Comelec chief in Peso US$1 Currency • Palace submits version of 'amnesty' EXCHA NGE RAT E US (dollar) 44.1260 1.0000 0.0227 Japan (yen) 0.5284 0.0120 1.8925 UK (pound) 69.6308 1.5780 0.0144 The Economy and Business Hong Kong (dollar) 5.6874 0.1289 0.1758 Canada (dollar) 43.6761 0.9898 0.0229 • GDP growth slows to 6.5% in 3Q Australia (dollar) 43.3185 0.9817 0.0231 • Tax effort slips to 13.2% New Zealand (dollar) 33.6326 0.7622 0.0297 • Gov’t borrowings up 35% in 10 months EMU (euro) 58.8288 1.3332 0.0170 • P-Noy signs complete set of new peso bills PESO–DOLLAR RATE • Bank-to-bank remittance settlement now / 30 trading days to November 25, 2010 possible 42.00 Open: P 44.020 42.50 Close: P 44.080 Corporate Briefs 43.00 High: P 43.980 • SK Lubricants (Korea) & SK Techno-lube Corp. to launch new line of products Low: P 44.150 43.50 • Forum Energy Plc seals $10-M facility to W.A.: P 44.093 fund exploration works in Palawan 44.00 Vol: 873.69 M • Shareholders of Filinvest Development 44.50 Corp. okay plan to raise capital stock PSE COMPOSITE INDEX 30 trading days to November 25, 2010 Open: 4,125.92 4450 Close: 4,097.49 4350 High: 4,157.68 4250 Low: 4,089.75 4150 Index: 4,097.49 Vol: 1.098 B 4050 Val: P5.346 B 3950 Disclaimer: The articles in this Daily News have been culled from various media sources. We cannot, therefore, vouch for the accuracy of what is reported. For more information on the WBF please contact our Marketing and Business Development Director Jorge Lontoc Jr. @ Mobile: 0927-365-7984, Tel: 810-96-06 to 09, or visit our website at www.dataphil.com 1 THE NATION PH prepares for outcome of U.S. - S. Korea drill The Philippines is worried that a joint United States-South Korea military exercise scheduled on Sunday might heighten tensions in the region and stir anxieties among civilians, including Filipino workers in the Korean peninsula. “The coming exercise is creating anxiety because we have so many OFWs (overseas Filipino workers). This is the uncertain factor in the equation today,” Foreign Affairs Undersecretary Esteban Conejos Jr. said. Last Tuesday, North Korea shelled a tiny South Korean island, killing 4 people and burning 19 houses. In preparation, the Overseas Workers Welfare Administration (OWWA) board has initially set aside P25 million as part of contingency measures. Meanwhile, Philippine Coast Guard commandant Admiral Wilfredo Tamayo said they were ready to help evacuate 60,000 Filipinos in South Korea in the event of a full-blown war. PCSO integrity to be protected Malacañang justified its decision to return the Philippine Charity Sweepstakes Office (PCSO) to the Office of the President (OP) as it vowed to protect the integrity of the agency. Presidential spokesman Edwin Lacierda said the PCSO had always been an attached agency of the OP because of its complementary concerns such as charity and games of chance. “Only (former President Gloria Macapagal-Arroyo) played around with the PCSO, transferring it to the (Department of Social Welfare and Development) and then (the Department of Health),” Lacierda said. “PCSO is governed by a board and attachment (to the Office of the President) is only for coordination. Attachment is logical because of coordination with such OP functions as the (Presidential Social Fund),” Lacierda said. Lacierda also said the Aquino administration was bent on protecting the agency from anomalies. Executive Secretary Paquito Ochoa Jr. said they acted on the request of PCSO chair Margarita Juico to put the agency back to OP. Search for new Comelec chief Malacañang has activated its search committee to scout for the replacement of Jose Melo following his resignation as chairman of the Commission on Elections (Comelec). President Benigno Simeon C. Aquino III issued the order to the search committee after accepting the resignation of Melo. The President also ordered the committee to scout for other people to fill the 2 vacancies in the poll body. Melo’s resignation will be effective Jan. 31, cutting short his term as Comelec chief which is until 2015. Presidential spokesman Edwin Lacierda confirmed Melo had a meeting with the President but did not elaborate. Mr. Aquino, for his part, is also mum on whether he offered Melo a new post after he was told by the Comelec chairman of his plan to retire from government service. Melo, however, clarified that he resigned, and not filed for early retirement. He noted that he could not avail of any of the benefits of retiring. Palace submits version of 'amnesty' Malacañang submitted to the Senate yesterday the amended version of Proclamation 50 seeking to grant amnesty to former soldiers and policemen implicated in mutinies against former President Gloria Arroyo. Proclamation 75 was transmitted to the Senate less than a week after Executive Secretary Paquito Ochoa Jr. informed Sen. Teofisto Guingona III of his intention to withdraw Proclamation 50.Proclamation 75 addressed various “flaws” that lawmakers raised during a hearing at the House of Representatives. Proclamation 75 states that the amnesty shall take effect upon concurrence of a majority of all the members of Congress. Under Proclamation 50, it was to take effect immediately upon the signing by President Aquino. Sen. Guingona, Senate committee on peace, unification and reconciliation chairman, said Proclamation 50 was most likely lifted from Proclamation 80 issued by President Corazon Aquino during the revolutionary government set up immediately after the ouster of President Ferdinand Marcos in 1986. At that time, Aquino exercised legislative powers, he added. Proclamation 75 specifies the ranks of soldiers and policemen eligible to apply for amnesty, which was not stated in Proclamation 50. ECONOMY & BUSINESS GDP growth slows to 6.5% in 3Q The local economy expanded by 6.5% in the 3rd quarter from a year ago, below market expectations and slower than the growth in the first half, the National Statistical Coordination Board (NSCB) reported. Gross domestic product (GDP) growth for the July to September period was below the revised 8.2% and 7.8% expansions recorded in the second and first quarters, respectively. The third-quarter figure brought the average GDP growth for the first 9 months to 7.5%, well above the full-year government target of 5-6%. NSCB Secretary General Romulo Virola, however, pointed out that the GDP expansion booked in the first quarter of President Aquino was the fastest compared to the comparable period during the terms of President Fidel Ramos, President Joseph Estrada, and President Gloria Arroyo. 2 Tax effort slips to 13.2% The government’s tax effort slipped as the pace of the growth of collections of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) failed to match the expansion of the economy as measured by the gross domestic product (GDP), the Department of Finance (DOF) reported. Data released by the DOF yesterday showed that the government’s tax effort slipped to 13.28% of GDP in the first 9 months of the year from 13.39% of GDP in the same period last year. The government’s tax effort refers to the ratio between tax collections and the domestic economy as measured by the GDP. Taxes collected by the government from January to September this year totaled P798.3 billion or 13.28% of the nominal GDP of P6.083 trillion from January to October this year from P722.4 billion or 13.39% of the nominal GDP of P5.463 trillion in the same period last year. Gov't borrowings up 35% in 10 months Total government borrowings jumped 35% in the first 10 months of the year as the Philippines borrowed more from both foreign and domestic creditors to plug the country’s ballooning budget deficit, data from the Bureau of Treasury showed. The government borrowed P701.7 billion from January to October this year or P180.54 billion higher than the P521.16 billion it borrowed in the same period last year. Borrowings from domestic creditors surged 57% to P457.73 billion in the first 10 months of the year from P291.57 billion after the successful issuance of overseas Filipino workers’ bonds worth P22.3 billion in April and retail treasury bonds (RTBs) amounting to P97.5 billion in August. Furthermore, the Treasury issued P394.54 billion worth of 91, 182, and 364-day Treasury bills (T-bills) but redeemed only P463.74 billion worth of the same government papers from January to October. It also issued P407.13 billion worth of 3, 4, 5, 7, 10-, 20-, and 25-year year Treasury bonds (T-bonds) during the period. On the other hand, data released by the treasury showed that borrowings from foreign sources inched up by 6.3% to P243.97 billion from P229.59 billion. P-Noy signs complete set of new peso bills President Aquino signed yesterday a complete set of Philippine peso bills that will be in circulation for the next 3 to 4 years while the Bangko Sentral ng Pilipinas is expected to launch a new set of “redesigned” denominations by December.