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A NEWSPAPER IS A PUBLIC TRUST P25. METRO MANILA, PHILIPPINES S1 / 1

CONTENTS VOL. XXV, ISSUE 239 CONTENTS VOL. XXV, ISSUE 239
SECTION 1 cont SECTION 2
OPINION 4-5 STOCK MARKET 2
THE ECONOMY 6 WORLD SPORTS 4-5
CORPORATE NEWS 7 BULLETINS 6
MOTORING 8 ARTS & LEISURE 7-8
THE WORLD 9 THE ECONOMY S1 / 6 CORPORATIONS S1 / 7 THE NATION S1 / 11 BANKING S2 / 1 SECTION 3
THE NATION 10-11
SECTION 2 Talks eyed Limits OIC execs Moody’s FINANCIAL TIMES
WORLD BUSINESS
1-2
3
BANKING & FINANCE 1&3
by gov’t not defi ned? to visit cites banks WORLD MARKETS 4

BY DIANE CLAIRE J. JIAO, Senior Reporter

STOCK MA R K ET

Goals kept despite optimism

30 days to JUNE 26, 2012
5210
IND EX
OPEN: 5,167.85
5132
HIGH: 5,201.20
5054
LOW: 5,163.75
4976
CLOSE: 5,193.84
4898 VOL.: 1.443 B
▲ 26.64 pts.
0.52 %
4820 VAL(P): 4.818 B

Full-year GDP target maintained even as Q2 could again surprise

COMPOSITE

A SIA N MA R K ETS JUNE 26, 2012

Close Net %

Japan (Nikkei 225) 8,663.99 ▼ -70.63 -0.81 Economic growth for the April-
Hong Kong (Hang Seng) 18,981.84 ▲ 84.39 0.45
Taiwan (Weighted) 7137.93 ▼ -28.45 -0.4 June period could fall within the
Thailand (SET Index) 1,149.73 ▲ 2.30 0.2
full-year target or go even higher, Toiler no more
S.Korea (Kse Composite) 1,817.81 ▼ -7.57 -0.41
Singapore (Straits Times) 2,805.63 ▼ -9.63 -0.34 economic managers yesterday said A former child worker paints
Sydney (All Ordinaries) 4,056.32 ▼ -15.64 -0.38 his hand during the launch
Malaysia (Klse Composite) 1,594.10 ▼ -9.02 -0.56 even as they held off from adjusting of a campaign against child
W OR LD MA R K ETS JUNE 25, 2012
the 2012 goal despite a surprisingly labor in Manila yesterday.
Close Net strong first quarter.
Dow Jones 12502.66 ▼ -138.12
NASDAQ 2836.16 ▼ -56.26 “The leading economic indicators are positive for
S&P 500 1313.72 ▼ -21.30 the second quarter ... GDP (gross domestic product)
FTSE 100 5450.65 ▼ -63.04 growth will definitely be within the 5-6% target of
Euro Stoxx50 2312.34 ▼ -29.30 the government,” Acting Socioeconomic Planning
W OR LD CU R R ENCIES JUNE 26, 2012
Secretary Arsenio M. Balisacan said at the sidelines
Close Previous
$/UK pound 1.5611 ▲ 1.5555 of a Development Budget Coordination Committee
$/Euro ▼
1.2484 1.2488 (DBCC) meeting.
$/Aust dollar 1.0033 ▲ 1.0013 GDP growth exceeded expectations at 6.4% in
Canada dollar/US$ 1.0268 ▼ 1.0275
the first quarter, beating market forecasts, and Mr.
Swiss Franc/US$ 0.9619 ▲ 0.9613
Balisacan said another surprise could happen.
P ESO-D OLLA R R ATE “Higher than 6% is still a possibility this quarter,”
30 days to JUNE 26, 2012 he said.
42.00
FX There were no adverse shocks to the domestic
OPEN P42.550
42.45 economy from April to June, he explained. Inflation
HIGH P42.460
42.90
LOW P42.580
and interest rates remained low while fuel prices were
43.35 CLOSE P42.470 rolled back, he added. There were also no typhoons
43.80 W. AVE. P42.503 or dry spells.
44.25
▲ 11.4
ctvs VOL. 832.41 M National Economic and Development Authority
WEIGHTED AVE.
(NEDA) assistant director-general Ruperto P. Majuca afp

A SIA N CU R R ENCIES JUNE 26, 2012 Goals, S1/ 3

Latest Bid
0900GMT Previous
Japan (yen)
Hong Kong (HK dollar)
Taiwan (NT dollar)
79.26
7.7586
29.96
▼ 79.88
▼ 7.7598
— 29.96
April’s 13.7% imports drop steepest in 30 months Spending boost
Thailand (baht)
S. Korea (won)
Singapore (dollar)
31.81
1158.45
1.2812
▼ 31.85
▼ 1162
▼ 1.2819
Imports slipped further in the same month last year. For Imports of mineral fuels, lu- dent Ernesto B. Santiago said in a widens deficit to
Indonesia (rupiah)
Malaysia (ringgit)
9435
3.194
— 9435
▼ 3.197
in April as fuel prices fell and
inbound electronics shipments
the January to April period, the
deficit also narrowed to $2.76 bil-
bricants and related materials fell
by 24.3% in April to $1.06 billion
telephone interview.
Experts’ forecasts on merchan- P22.8B as of May
continued to dwindle, data re- lion from $4.66 billion. from $1.40 billion last year, a re- dise imports were a mixed bag as
leased by the government yester- “The weak performance of versal of March’s 74.4% growth. they noted problems in the global The government swung
DAYS day showed.
A total of $4.77 billion worth
imports was mainly due to the
reduced importation of petroleum
Electronics, which accounted
for 27.6% of the total import bill,
economic front.
“Risks of a synchronized slow-
back to a deficit in May, having
posted its highest public spend-
TO of goods was imported that crude due in part to lower oil went down by 22.1% year on year. down in the major economies ing performance yet this year.
GO month, 13.7% lower than the
$5.53 billion a year earlier, the
prices in the international market
and the relatively depressed prices
On a monthly basis, however,
imports of electronic products
could dampen domestic demand
for raw materials imports and
The budget shortfall hit
P19.901 billion last month,
to BusinessWorld’s National Statistics Office said. of electronics on the account of improved by 4.6% to $1.32 billion capital imports. For the full year, overturning April’s record-high
25th Anniversary The annual decline was the sluggish demand in the world from $1.26 billion. total import growth is expected to P31.024-billion surplus that was
steepest in 30 months: a double- market,” said Ruperto P. Majuca, Industry executives said the reach only 1.3%,” Mr. Leow said. driven by the annual income tax
digit decline was last recorded in National Economic and Develop- decline was mainly due to an in- But Mr. Majuca said the NEDA filing deadline.
October 2009 when inbound ship- ment Authority (NEDA) assistant ventory correction. saw a recovery in the second quar- The deficit as of May now
ments went down by nearly 17%. director general. “If you will trace back the data, ter of 2012. stands at P22.786 billion, up
The steep drop resulted in a Eugene Leow, economist at imports grew fairly high at the “We anticipate already higher substantially from the P2.885 bil-
4.6% contraction as of April to DBS Bank Ltd., said imports had start of 2011. I believe that this volume of production resulting lion posted a month earlier. The
$20.27 billion. reverted to the trend after a surge is just an inventory correction,” from increased orders and new government, however, still has
The trade deficit narrowed to in mineral and fuel shipments in Semiconductor and Electronic contracts,” he said. — Daniel a lot of catching up to do given
$134.7 million from $1.22 billion March. Industries in the Philippines presi- Anne N. Rodriguez its first-semester deficit cap of
P109.341 billion.
The “wide fiscal space,” Fi-
P2.006-trillion budget nance Secretary Cesar V. Purisima

ready to be presented Investment priorities list said in a statement, “will now

give us an advantage to finance
infrastructure projects and social

The 2013 budget has been pegged at P2.006 tril-

lion but the figure could still be revised when the
proposal is forwarded to President Benigno S. C.
Aquino III and his Cabinet on Friday.
The Development Budget Coordination Com-
mittee (DBCC) met yesterday to approve the na-
tional expenditure plan for next year along with its
accompanying macroeconomic assumptions.
“We are now ready to present the 2013 national
budget to the President and the Cabinet on Friday.
The P2.006-trillion ceiling is the proposal,” Budget
Secretary Florencio B. Abad said at the sidelines of
the DBCC meeting.
The Department of Budget and Management
(DBM) maximized the P2.006-trillion cap set but
ISSN 0116-3930 this could yet be whittled down following Mr.
Aquino’s review, Mr. Abad explained.
At P2.006 trillion, the proposed 2013 budget is
10.4% or P190 billion more than this year’s P1.816
trillion.
Budget, S1/ 3
approved by Aquino programs that shall in the long-
term, curb poverty and promote
equality.”
This year’s Investment Priorities • agriculture/agribusiness and fishery; The Development Budget Co-
Plan (IPP), which lists business ac- • creative industries/knowledge-based ordination Committee (DBCC)
tivities entitled to incentives from the industries; yesterday also retained the full-
government, has been approved by • shipbuilding; year deficit ceiling of P279.1 bil-
President Benigno S. C. Aquino III. • mass housing; lion, equivalent to 2.6% of gross
“This year’s IPP has been crafted to • iron and steel; domestic product.
focus on four critical areas: job genera- • energy; “The deficit may be low as
tion, enhanced delivery of social services, • infrasctructure; of May but it is on the up, so we
international competitiveness, and cli- • research and development; decided not to change the cap,”
mate change mitigation and adaptation,” • green projects; Budget Secretary Florencio B.
Memorandum Order 40 signed on June • motor vehicles; Abad said at the sidelines of the
13 and published in a newspaper yester- • “strategic” projects; DBCC meeting.
day states. • hospital/medical services; and The government collected
The 2011 list was practically carried • disaster prevention, mitigation and P131.403 billion last month,
over, with the addition of iron and steel recovery projects. 9.4% more than the P120.088
products plus the establishment and Public private partnership projects, billion netted the year before. This
operation of primary and secondary a separate listing in the 2011 IPP, have brought the five-month revenue
hospitals in the list preferred activities: IPP, S1/ 3 haul to P645.645 billion, an 11%
Deficit, S1/ 3
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WEDNESDAY, JUNE 27, 2012 S1 / 3

Deficit Goals
from S1/1 from S1/1

jump from the P581.501 billion
shored up in the same period in
2010.
The Bureau of Internal Rev-
enue contributed P428.496 billion
while the Bureau of Customs ac-
counted for P120.126 billion. The
Bureau of Treasury also added
P46.886 billion and other govern-
ment offices, P38.817 billion.
“We are pleased with the con-
tinued rise in revenue collec-
tions, especially since this allows
us to pursue with our spending
program for the year while mak-
ing sure that our fiscal position
remains under control,” Mr. Puri-
sima said.
The government must collect
P130.302 billion this month to hit
the first-half target of P775.947
billion.
The Finance chief assured that
work to plug loopholes in the tax
system would continue. He also
urged Congress to ensure the
passage of two priority revenue
measures: the streamlining of
fiscal incentives and the increase
of excise taxes on tobacco and
alcohol.
Expenditures, meanwhile,
stood at P151.304 billion in May,
up 16.7% from the P129.689 bil-
lion a year ago. It is the highest
level so far this year, dwarfing
March’s P144.052 billion.
The government has now
spent P668.431 billion as of May,
up 13.1% from the P591.041 bil-
lion disbursed in the same period
a year ago.
“We are pleased to report that
national government disburse-
ments continue to accelerate and
gain momentum ... We continue
to closely monitor the financial
and physical performance of
agencies to troubleshoot imple-
mentation bottlenecks and to
address capacity constraints,” Mr.
Abad said.
Expenditures must hit
P216.857 billion this month so
the government can meet its
P885.288-billion goal for the first
semester.
“That’s a big challenge for
the [government] and June is
practically over,” University of the
Philippines economist Benjamin
E. Diokno yesterday said when
sought for comments.
Mr. Diokno, Budget secretary
during the Estrada administra-
tion, stressed that underspending
remained “serious,” particularly in
public infrastructure and capital
outlay.
Mr. Abad, however, pointed
to reforms that would accelerate
public spending well throughout
the second semester.
“We will assess all agencies by
June 30 and realign or even recall
any unused funds. These will be
moved to projects that are ready
for roll-out,” he said.
Debt payments and salary in-
creases for government employees
should also buoy public spending
in the second half, he added.
The government expects to
collect P1.561 trillion in revenues
this year and make P1.84 trillion
in disbursements, for a fiscal
deficit of P279.1 billion. — Diane
Claire J. Jiao
supported the forecast, saying
GDP growth in the second quarter
would not be “substantially far
away” from the level seen at the
start of the year.
“Like in the first quarter,
growth will also be broad-based,”
Mr. Majuca added.
Services, construction and
manufacturing are possible strong
performers, the NEDA officials
said. Agriculture could also re-
bound from its measly 1% growth
in the first quarter.
Despite this optimism, eco-
nomic managers turned down a
proposal to hike the GDP target
this year to 5.5-6.5%.
“[The DBCC] considered it
but we prefer to err on the side of
conservatism,” Budget Secretary
Florencio B. Abad said.
Europe still accounts for a sig-
nificant share of the country’s ex-
ports and the trade bloc’s ongoing
debt woes could dampen demand
for local products, he explained.
“The gloomy global environ-
ment could also lead to a possible
slowdown in our overseas remit-
tances,” Mr. Abad added.
Mr. Majuca said NEDA pro-
jections supported the higher
5.5-6.5% goal.
“However, considering the ex-
ternal headwinds, it may be better
to adopt the conservative stance
and just to maintain the 5-6% as
it is,” he added.
Work continues on support-
ing the domestic economy, Mr.
Balisacan said, via investments in
infrastructure and industries such
as agriculture and tourism.

Budget
from S1/1

After Friday’s presentation the DBM will

have several weeks to incorporate any changes
requested by the president and the Cabinet. It
then aims to submit the 2013 budget to Con-
gress on July 23 — right after Mr. Aquino’s
State of the Nation Address — so it can be
enacted into law within the year.
The DBCC also greenlighted 2013 macro-
economic assumptions. The gross domestic
product (GDP) growth target was affirmed
at 6-7%, up from the 5-6% goal for this year.
The fiscal deficit cap, meanwhile, was set at
P241 billion, equivalent to 2% of GDP, down
from 2012’s P279.1 billion or 2.6% of GDP.
“We are committed to stay within these
fiscal ceilings,” Mr. Abad said.
The increase in the national budget will
mainly benefit social services as the Aquino
administration aims to meet its infrastructure
and education targets in 2013.
“The 2013 budget will fund the employ-
ment of 61,000 teachers and the construction
of 27,000 classrooms so we can close the
teacher and classroom gap in the country next
year,” Mr. Abad said.
It will likewise support the Department
of Public Works and Highways (DPWH) in
its goal to pave all national arterial roads by
2014, he added.
The DPWH, in particular, will play a major
role next year.
“Given the efficiency the DPWH has dis-
played so far, we will make adjustments so it
acts as the government’s principal infrastruc-
ture agency,” Mr. Abad said.
The identification of projects and their
beneficiaries will still be assigned to respective
agencies such as Health, Agriculture, Educa-
tion and Transportation departments, he
explained. Design, costing, procurement and
implementation, however, will be transferred
to the DPWH.
“By the third quarter, the DPWH will be
done with most of its small projects this year. It
even wants to advance some of its 2013 budget
so it can already bid out some of its projects
for next year,” Mr. Abad claimed. — Diane
Claire J. Jiao

IPP
from S1/1

been placed under the infrastructure listing.

Activities related to tourism were moved to
the mandatory list in light of the signing into
law of Republic Act 9593 or the Tourism Act
of 2009.
The energy category under the preferred
list applies to all ventures, dropping a Trade
department proposal to limit perks to projects
in far-flung areas or those providing capacity
to Mindanao.
“[The Energy Department] said incen-
tives are still needed to attract more power
investments,” Trade Undersecretary Cristino
L. Panlilio told reporters.
Trade Undersecretary Adrian S. Cristobal,
Jr. meanwhile, said: “Iron and steel investments
have again been included as we recognize
that we need to grow this sector if we are to
industrialize.”
“There is also strong interest from foreign
firms to bring in more investments in this
area,” he added.
Trade Secretary Gregory L. Domingo said
tax breaks for hospitals and medical services
are expected to support the government’s pro-
gram of improving healthcare and is also in
line with the goal of making the Philippines a
medical tourism hub.
Trade officials said multisectoral consulta-
tions will soon be launched for the drafting
of the 2012 IPP’s implementing rules and
regulations.
“The policy direction is to get value for our
incentives through these rules,” Mr. Cristobal
said.
“We have to tighten some of these rules to
make that incentives the government grants
are sound and may be used effective to achieve
the goals of inclusive growth.” — NMG, KAMP
 4 / S1 OPINION
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FEATURE
Taxman quiet
as US churches
get political
ATLANTA — Pastor Jim Garlow will stand before
congregants at his 2,000-seat Skyline Wesleyan
Church in La Mesa, California, on Sunday, Oct. 7,
just weeks before the US presidential and congres-
sional elections, and urge his flock to vote for or
against particular candidates.
He knows such pulpit pleading could endanger
his church’s tax-exempt status by violating Internal
Revenue Service (IRS) rules for a 501(c)(3) charitable
organization. A charity can take a position on policy
issues but cannot act “on behalf of (or in opposition
to) any candidate for public office.” To cross that line
puts the $7-million mega-church’s tax break at risk.
Even so, Mr. Garlow not only intends to break the
rules, he also plans to spend the next four months re-
cruiting other pastors to do the same as part of Pulpit
Freedom Sunday. On that day each year since 2008,
ministers intentionally try to provoke the IRS. Some
even send DVD recordings of sermons to the agency.
“I believe we’re on the early stages of the next
great awakening,” Mr. Garlow said last year. “We’re
going to see it just sweep across this nation.”
The situation is fraught with peril for the IRS,
which needs to be seen as apolitical. When it cracks
down on political activities proscribed by the 501(c)
(3) regulations, it is inevitably branded as partisan.
When the target is a church, mosque or syna-
gogue, enforcement puts two fundamental American
values at odds: freedom of speech and the separa-
tion of church and state. Although the agency has
enforced the tax-exemption rules against churches
in the past, it has so far ignored the provocations of
Freedom Sunday.
The IRS has also been silent about the increas-
ingly aggressive political activity of the US Catholic
bishops, who have called for their own Fortnight for
Freedom this week. Masses, rallies, and parish bul-
letins are being mobilized against the Obama admin-
istration’s healthcare regulations on contraceptives.
The result of agency inaction, according to tax
experts and former IRS staffers, will be a lot more
electioneering by leaders of the faithful, in local races
as well as national, and to the benefit of Democrats
as well as Republicans. “It will get worse unless the
IRS takes action, and they seem reluctant,” said
Nicholas Cafardi, dean emeritus and professor of law
at Duquesne University and the longtime lawyer for
the Catholic diocese of Pittsburgh. Mr. Cafardi called
the current state of affairs “toxic” in its mingling of
the two worlds. Many religious leaders do not sup-
port the trend toward more political involvement by
organized religion and worry it will undercut their
moral authority.
The money involved is enormous. Combined,
federal tax breaks on donations to churches and
exemptions from state and local property taxes likely
add up to something on the order of $25 billion in lost
revenue each year. Unlike other charities, churches do
not have to file financial statements with the govern-
ment. There are only rough estimates of church en-
dowment or investment income, which is also tax-free
and believed to be larger than annual contributions.
Using tax data from the US Congress’s Joint
Committee on Taxation and data on giving to
churches from the Indiana Center, a Reuters analysis
found that tax breaks on church giving shaved $12
billion or so from total US tax collections in 2011
and approximately $145 billion over the last decade.
Former IRS staff now insist that being seen as
weak on enforcement of the law would be more dam-
aging than any allegation of partisanship. — Reuters
Tribute to Pidol
A
re national honors, such as the title of National Artist, appropriate for a co-
median? The French thought it was proper to confer the Legion of Honor on
Jerry Lewis. Queen Elizabeth named Charlie Chaplin a Knight Commander of
the Order of the British Empire. And Bob Hope not only received the Congressional
Gold Medal, the Presidential Medal of Freedom and the Ronald Reagan Freedom
Award, the airport in Burbank in Los Angeles County, is also named after him.
If joy is one of art’s main reasons for being, and
if excellence in one’s profession is the measure for
conferring honors, there should be no doubt that
our own King of Comedy, Dolphy, deserves to be
named a National Artist.
Regretfully, the Supreme Court, notorious for
virtually permanent temporary restraining orders,
still has to sort out the last conferment of this ti-
tle, which was tainted during the tenure of Gloria
Macapagal-Arroyo.
For this reason, according to Malacañang,
Noynoy Aquino’s hands are tied, even while he ac-
knowledges the clamor to confer the title on Dolphy
before it becomes posthumous.
Meanwhile, let us savor the Great Comic’s pre-
carious presence on this earth by recalling the gift
of laughter that he so generously gave for as long as
we can remember. To mark Dolphy’s 80th birthday, I
wrote a piece entitled, “Pidol,” in Filipinas Magazine
in the US. Allow me to share it with you.
Long before the nickname stuck to Joseph Estra-
da, Armando Garces, the top director of Sampaguita
Pictures in the late ‘50s, was already calling everybody
Erap (pare, meaning close friend, said backwards).
Dingma, like most movie folk, had a habit of
saying people’s names backwards. Not surpris-
Europe’s weary magicians
BRUSSELS — Europe’s leaders will meet again at the end of June. The question they must answer
this time is not whether they can rescue this or that country, but whether they can rescue the euro
zone — if not the European Union (EU) in its current form.
To see why, just review the last 12 months. In
July 2011, Europe’s leaders agreed on a (limited)
restructuring of Greek debt, while at the same time
making financial assistance nimbler and cheaper. A
year later, Greece remains on knife-edge.
Throughout last autumn, they agonized over the
rise of Spanish and Italian bond rates, until finally the
European Central Bank decided to administer pain
relief in the form of large-scale liquidity provision
to banks. But, despite the arrival of new, reform-
minded governments in both Italy and Spain, the
relief proved short-lived.
Then, last December, they agreed on a new fiscal
treaty, a more robust financial firewall, and new re-
sources for the International Monetary Fund (IMF),
so that it could intervene on a larger scale. But, by
early spring, bond rates for Spain and Italy were again
approaching unsustainable levels.
Finally, earlier this month, they decided to devote
€100 billion to help Spain clean up its ailing banks.
The market’s reaction was to send Spanish govern-
ment bond rates even higher.
Contrary to some perceptions, Europeans have
not remained inactive over the last year. But they
have lost their touch. Like aging magicians, they still
try tricks that used to impress, but that fail to deliver
Conflicted
T
he Filipino leaders’ decision to lend $1 billion (approximately P43 billion) to
the International Monetary Fund (IMF) for its $430-billion fund to support
the debt-ridden, 17-nation euro zone in the face of rising joblessness, poverty,
and hunger at home, shows the conflicted life of the Philippines as a nation. Is the
country a net lender or net borrower?
Those who favor the decision see it as our ticket to
respectability on the world stage or, at the very least,
a way to impress the credit rating agencies.
On the other hand, those who are opposed to the
move see the decision as insensitive to the plight of
the Filipino masses, lending hard-earned dollars to
nations much richer than us, some hosts to our in-
creasing army of Filipino overseas workers in search
of jobs that they can’t find at home.
Those who favor the decision argue that “as a
member of the global community of nations…it is
also in our interest to ensure economic and financial
stability across the globe.” That’s Bangko Sentral ng
Pilipinas (BSP) Governor Tetangco’s argument, and
I assume Aquino’s economic team concur with him.
The argument is that by being a member of the
188-nation IMF, the Philippines has a responsibility
of sharing the burden of easing the pains of fellow
member countries faced with financial difficulties.
And then there’s the utang-na-loob rationaliza-
tion for the loan. For nearly four decades and until
2006, the Philippines was a net borrower from the
IMF. Now that the IMF needs help to raise a $430-bil-
lion rescue fund, it is our obligation to support the
ingly, when I first met Dolphy at the Sampaguita lot,
Dingma introduced him as Pidol.
Because Dingma gave me my break as a screen-
play writer, I was a regular hanger-on at Sampaguita
even while I wrote mainly for neighboring LVN
Studios. Despite being in my teens, I often went
along with Dingma and Eddie Garcia (they couldn’t
call him Die-e for obvious reasons) for all-night
binges at Kapitbahay Sa Riviera and Bayside on
Dewey Boulevard (that was what Roxas Boulevard
was called then), where Carding Cruz and the Tirso
Cruz Band played.
Pidol was always there, too, doing the nightclub
rounds, night after night after night. Even in those
days, he was quite a charmer with the women.
But, most of all, he was a charmer with the
moviegoers. After doing Jack En Jill and Facifica
Falayfay, in both of which he played a hilariously
lovable gay who always turned out in the end being
simpatico with the heroine, Pidol could do no wrong
in comedy.
Those were the days when the movies, TV, radio
and stage had some of the most formidable names
in the annals of showbusiness. Pugo (also known as
Mang Nano, his name being Mariano Contreras)
was the grand old man of comedy. But Chiquito was
results — or, worse, prove counterproductive. Mean-
while financial fragmentation within the euro zone
continues; Spain, and to a lesser extent Italy, suffers
a seemingly irresistible rise in borrowing costs; and
political strains grow more visible.
One summit will not result in decisions that take
months to prepare. But Europe’s leaders nonetheless
have a chance to impress and start turning the tide,
provided that they are sufficiently bold, comprehen-
sive, and forward-looking. Here is a five-point agenda.
1. Accept a limited renegotiation of the Greek
program. The bomb has not been defused. While
Greece was having two rounds of elections, its reces-
sion deepened and policy action stalled. The EU-IMF
program is off track, and more focus must be put on
growth. The EU should streamline and front-load
existing transfers to Greece, and it should help to
trigger capital injection into state assets slated for
privatization.
2. Agree on a risk-sharing scheme for Spanish
banks. To lend more to Spain’s government so that
it can recapitalize the country’s banks adds to its
debt burden and scares markets, which fear future
debt restructuring. To use the partner countries’
taxpayers’ money to rescue Spanish banks is neither
economically justified nor politically acceptable. In-
IMF by pledging a significant, not a token, amount.
Of course, it assumes that the years of IMF tute-
lage was truly helpful rather than distressing. In the
past, whenever IMF lent money to the Philippines,
the country had to put in place painful adjustment
measures as conditions for the loans. Is the Philip-
pines imposing the same harsh conditions on the
IMF this time?
Quite frankly, I doubt whether the $1-billion loan
to IMF would impress the credit-rating agencies.
Today, the Philippine government remains indebted
to the tune of P5.1 trillion. A large part of its expen-
diture needs is unmet. And it has yet to transform its
tax system into a high-yielding, sustainable source
of financing.
Those who are critical of the decision to lend, on
the other hand, said the US$1-billion (approximately
P43-billion) could be better used to expand the gov-
ernment’s programs to create jobs, alleviate poverty,
and reduce hunger. Charity begins at home, they
argue. Some finance guys may ask: Why not use the
$1 billion to retire expensive Philippine public debts?
That would translate into smaller budget deficits in
the future give a higher payoff.
WEDNESDAY, JUNE 27, 2012
AD LIB
GREG
B. MACABENTA
holding his own, and so did a slew of old and new
comics like Lupito, Patsy, Chichay, Aruray, Pugak,
Tugak, Casmot, Cachupoy, Dely Atay-Atayan, Apeng
Daldal, Menggay, Eddie San Jose, Sylvia La Torre,
Oscar Obligacion, Jose Cris Soto and Panchito.
Note the obviously comic names of most of them.
You were supposed to immediately know that they
were comedians by their names, as in, “What do you
guys call yourselves?” “Si Goto at si Kare.” “Oh, you
must be comedians.”
I guess this was why, when he started out on the
Opera House stage during the Japanese occupation,
Pidol called himself Golay, like “Vegetable.” Eventu-
ally opting to be called the more sedate Dolphy, a
derivative of his given name, Rodolfo Quizon, didn’t
seem funny.
But there was a quality in Pidol’s comedy that
made him stand out, which was a reverse effect,
because he preferred self-effacing, low decibel gags
that portrayed him as vulnerable and an underdog.
None of the garrulous cuss-laden language of Eddie
Murphy or the hard-sell antics of The Three Stooges.
Pidol could make you laugh till you realized you
were weeping. The closest comparison would be
Charlie Chaplin in Limelight.
Macabenta, S1 / 5
COMMENTARY
JEAN PISANI-FERRY
stead, Spain should incur the first losses, and the euro
zone’s financial-rescue fund, the European Stability
Mechanism, should shoulder an increasing amount
of the risk above a certain threshold (say, 5-10% of
gross domestic product).
3. Map a scheme for a banking union. A banking
union — consisting of common deposit insurance,
supervision, and crisis resolution — would help
to avoid the mutual contamination of banks and
sovereigns, which is why the idea was endorsed at
the recent G-20 summit in Mexico. But it is an ambi-
tious endeavor that cannot be launched overnight. If
Europe’s leaders want to show that they are seriously
considering it, they should agree to launch concrete
discussions on key parameters, giving their ministers
a mandate to produce results by autumn.
4. Explore options for Eurobonds. Financial as-
sistance can conceivably help Spain, but not Italy.
If Italy’s situation worsened, debt mutualization in
one way or another would ultimately end up being
the only alternative to large-scale default. But, while
the European Commission has endorsed schemes
for partial debt mutualization, there has never been
a serious discussion about their conditions and im-
plications. Europe’s leaders cannot decide anything
Perry, S1 / 5
CORE
BENJAMIN E.
DIOKNO
Critics can’t reconcile the decision to lend $1
billion to the IMF with the continuing propensity
of the government to borrow money from abroad
to fund its various social and economic programs
and projects. The government has to borrow from
the World Bank and the Asian Development Bank
(ADB) to fund its conditional cash transfer pro-
gram. And it has to borrow money from various
multilateral banks and bilateral sources to finance
the much needed roads and bridges, airports and
seaports projects.
Why lend and borrow at the same time?
Looking at the issue from a purely financial
standpoint, one might ask: Is the Philippine gov-
ernment getting better return on investment for its
$1-billion loan to the IMF than what it is paying in
interests for its loans from the World Bank, ADB, and
other bilateral sources (China, Japan, and others)?
Some big, fast-growing countries are contribut-
ing large amounts to the IMF’s $430-billion rescue
fund. The BRICS — Brazil, Russia, India, China
and South Africa — countries pledged to loan $75
billion. China will contribute $43 billion, 10% of
Diokno, S1 / 5
WEDNESDAY, JUNE 27, 2012
Diokno
from S1 / 4
the total rescue fund. India, Russia, and Brazil will
contribute $10 billion each, South Africa will make
up for the rest.
But these countries, except South Africa, ranked
among the top 10 countries in the world in terms
of foreign exchange reserves. China is top leader
with $3.3 trillion, Russia ranked second with $510
million, Brazil ranked sixth with $374 million, and
India ranked ninth with $294 million.
The Philippines, by contrast, ranked 26th, with
$76.1-billion gross international reserves.
With China’s hefty reserves, its decision to lend
IMF $43 billions appears reasonable. It is also con-
sistent with China’s interest: the euro zone is China’s
number one export destination. A hobbled, crawling
Europe is not in China’s best interest.
On the other hand, other large countries, cer-
tainly much bigger than the Philippines in terms of
gross international reserves, are not contributing to
the rescue fund. How much is the US committing
to the IMF rescue fund? The last time I looked it
was zero.
Won’t the weak euro zone be a drag on economic
growth in the Philippines?
Not so if we are to believe our own economic
managers. But realistically, a weak Europe will sap
the growth potential of the United States, Asia and
the rest of world. A slower global growth would no
doubt affect the Philippines, but not in a big way,
and especially if its fiscal policy is bolder and more
expansionary.
But assuming that the Philippines is obliged to
contribute to the $430-billion IMF rescue fund, here
are some other legitimate questions: Is the $1-billion
contribution of the Philippine government small,
big, or just right? Can we afford it? Don’t we have
better use for it? Or are we just trying to impress the
credit-rating agencies in our quest for the elusive
upgrade to investment grade?
I’m sure that the $1 billion won’t come from the
national government. There is no provision for it in
the 2012 budget. And putting it in the 2013 budget
will most certainly face stiff opposition. The 1987
Philippine Constitution is clear: no money may be
released from the Treasury without an appropriation
made by law.
Lending $1 billion (P43 billion) to the IMF goes
against the grain for the famously austere President
Aquino. He knows he faces large and increasing
budgets in his remaining four years. The K+12
education program, the universal health care, the
conditional cash transfer program, the modern-
ization of the armed forces, the rice sufficiency
program, and the public infrastructure program
have all huge budgetary requirements. Aquino
also needs a large sum to give the agrarian reform
program one final push.
Since it is not the national government that is
funding the $1-billion loan to the IMF, then it must
be the Bangko Sentral ng Pilipinas. But I’m sure
BSP, on its own account, does not have that kind
of money. BSP was a big loser in recent years — in
2011, BSP lost P33.7 billion, and in 2010, another
P59.0 billion. Even now, BSP is asking the national
government for a sizable fund infusion.
As managers of public funds, present and future,
our national leaders have to face the Filipino people
and answer this difficult question: Are we better
off lending $1 billion to the IMF instead of using
the same to help the national government finance
its programs against joblessness, poverty, hunger,
ignorance, and income inequality?
Benjamin Diokno is professor of Economics at the
School of Economics, University of the Philippines (Dil-
iman). He was formerly secretary of budget and man-
agement in the Estrada Cabinet and undersecretary
for budget operations in the Aquino 1 administration.
Perry
from S1 / 4
at this stage, but they should task a group of “wise
men” (and women) to evaluate and report on options
by summer’s end.
5. Create conditions for macroeconomic adjust-
ment. Southern Europe needs to deflate to restore
competitiveness vis-a-vis northern Europe. Yet,
in addition to being horribly painful, domestic
deflation threatens the sustainability of public and
private debt. With lower nominal income and the
same level of debt, the threat of default necessar-
ily increases. Northern Europe should temporarily
accept somewhat higher inflation, provided price
stability is maintained in the euro zone as a whole.
Fortunately, German policy makers have indicated
that they understand this logic. Leaders must now
forge a consensus around it.
Most importantly, the leaders should break the
political deadlock. Germany does not want closer
financial solidarity if not accompanied by political
integration. France wants financial solidarity without
closer political integration. Both camps have stuck to
their positions for at least a quarter-century.
It is time to bridge the gap between them. The
perception that Europeans can agree on abstruse
technicalities, but not on essentials, is a fundamental
reason why the euro’s magicians are losing their touch.
Jean Pisani-Ferry is Director of Bruegel, an inter-
national economics think tank, Professor of Economics
at Université Paris-Dauphine, and a member of the
French Prime Minister’s Council of Economic Analysis.
Copyright: Project Syndicate, 2012.
www.project-syndicate.org
China’s 2012 growth target at risk
BEIJING — China’s annual growth target for 2012
looks increasingly in jeopardy as demand at home
falters and Europe’s debt crisis worsens, complicat-
ing matters for Beijing as the country heads into a
once-in-a-decade leadership transition.
The slowdown in the world’s second-largest
economy could be more entrenched than expected
as Beijing’s property tightening measures dilute the
impact of any fresh policy stimulus, diminishing
China’s ability to offset faltering demand in Europe
and the United States.
“I cannot see a bottom in economic growth. The
general slowdown trend may not change anytime
soon,” Shi Xiaomin, vice president of the China
Society of Economic Reform, a government think
tank in Beijing, told Reuters.
HSBC’s flash PMI showed China’s factory sector
shrank for an eighth straight month in June as export
order sentiment hit its weakest level since early 2009,
indicating the economic trough may extend well into
the third quarter.
“The economy is definitely on a downward
slope,” said Gao Shanwen, chief economist at China
Essence Securities in Beijing.
Mr. Gao expects annual gross domestic product
(GDP) growth to hover between 7-7.5% in the sec-
ond- and third-quarter, before a modest recovery to-
wards the year-end as policy stimulus gains traction.
Premier Wen Jiabao in March cut the 2012
growth target to 7.5%, which if realized would be
the lowest since 1990.
While that target was seen as typically conser-
vative for Chinese leaders, global conditions have
deteriorated sharply since then, with much of Eu-
rope now facing a prolonged recession and the US
economy appearing to be losing steam.
Analysts forecast in a Reuters poll in May that
China would deliver second-quarter economic
growth of 7.9% from a year earlier, with full-year
growth of 8.2%, which would be the lowest since
1999.
But weaker domestic and overseas data since
then has prompted some to cut forecasts and many
analysts now believe second-quarter growth could be
just over 7%. In early June, the central bank surprised
markets by cutting interest rates for the first time
since 2008 to combat faltering growth.
Continued weak performance into the second
half could increase the risk of missing Beijing’s 2012
target, although most analysts still see that as the
worst-case scenario.
SHOPTALK
Shoptalk
Opportune time
Some legislators are reportedly planning to meet with
President Benigno S.C. Aquino III in a bid to persuade
him to reconsider his opposition to easing constitutional
restrictions on foreign ownership in several sectors. Mr.
Aquino had said in a speech before alumni of US schools
in May that he supports a “nationalistic position” on pro-
moting investments in the country — a statement that
raised not a few eyebrows in the business community.
“Some of our legislators believe that now is the time
to lift foreign ownership limits,” a senior official of the
Executive branch, who declined to be named, said at
the sidelines of a recent economic forum.
Ever-present factor
Rumors have it that the replacement of former Civil
Aviation Authority of the Philippines (CAAP) Director
General Ramon S. Gutierrez last week stemmed from his
failure to promptly regain the country’s Category 1 status
from the US Federal Aviation Administration. To recall, Mr.
Gutierrez, who was a pilot of the late former president
Corazon C. Aquino, promised to President Benigno S.C.
Aquino III to improve the country’s status by the end
of last year. At the same time, it is an open secret in the
aviation industry that Mr. Gutierrez may have differences
with his boss, who reportedly walked out from a CAAP
meeting. The boss, an aviation sector official said, “had
always wanted somebody to be there (CAAP director
Macabenta
from S1 / 4
I wrote a few films that starred or featured Pidol,
among them, Larry Alcala’s Kalabog En Bosyo; a spy
comedy that also starred Chiquito, the title of which
I can no longer recall; as well as Nardong Putik and
Karate Champion, in which he played cameo roles. But
it was not until I became executive producer of Buhay
Artista, that I really saw him up close as a performer.
Buhay Artista was ABS-CBN’s highest-rating
show and the forerunner of Pidol’s other TV hits,
John En Marsha and Home Along Da Riles. It also
established his team-up with Panchito Alba, a com-
bination as great as that of Laurel and Hardy, Abbot
and Costello, Jerry Lewis and Dean Martin and, oh
yes, Pugo and Tugo.
For sure, one of the secrets of Buhay Artista’s
success was writer-director Ading Fernando, creator
of many of television’s greatest sitcoms.
But Ading never really wrote a script for Buhay
Artista, a fact I would find out soon enough, being
the concurrent head of Script Quality Control of
OPINION S1 / 5
“I think they are likely to achieve it, but obvi- However, analysts say the central bank may
ously there could be a risk,” said Yiping Huang, chief have to ease policy further by cutting banks’ reserve
economist for emerging Asia at Barclays Capital in requirement ratios (RRR) or interest rates again to
Hong Kong. help stabilise growth.
“The bottom line is that they still want to stabilize “Probably the second quarter will be the low in
growth because this is the year of leadership transi- terms of the growth rate and growth will pick up in
tion,” said Huang, who still expects the economy to the third quarter. If they (policy makers) don’t see
grow 8.1% in 2012. it, they will ease more,” said Tim Condon, head of
But Mr. Shi maintained his bearish outlook that Asia research at ING in Singapore.
2012 growth could slow to around 7% from last Mr. Condon expects two more interest rate cuts
year’s 9.2%. and two cuts in the RRR, both in the third quarter.
Is policy easing working? Gao at China Essence has penciled in one more rate
There is no authoritative definition of a hard cut and two to three RRR cuts by the yearend.
landing in China, but analysts expect job losses to Still, some economists are sceptical about the
rise if GDP growth dips below 7%. effectiveness of policy easing, noting Chinese manu-
The last time Beijing’s annual target was under facturers are already facing overcapacity and are
threat was in 2009, when growth tumbled to just less likely to take out fresh loans. While May bank
6.6% in the first quarter, before Beijing’s massive 4 lending was stronger than expected, many of the new
trillion yuan ($629 billion) stimulus powered full- loans were believed to be linked to Beijing’s move to
year expansion back to 9.2%. fast-track infrastructure investment as opposed to a
Unlike in 2008/09, the job market has remained rebound in broader economic activity.
relatively tight so far this year, “The government has been
partly reflecting the country’s ANALYSIS gradually relaxing monetary con-
demographic shifts, but evidence ditions, but credit has not shown a
abounds that smaller and mid-sized private firms significant increase because demand for long-term
are increasingly struggling with slackening orders, loans is shrinking,” Wang Jian, a researcher with the
rapid wage increases and higher raw material costs. National Development and Reform Commission,
Sportswear brand Li Ning Co. recently became wrote in an article published in the official China
the latest Chinese firm to issue a profit warning, Securities Journal last week. “The trend of economic
saying earnings could drop sharply this year due to slowdown may not change before the end of 2013.”
weaker sales, further dampening confidence in the The biggest drag on domestic demand stems from
power of the once-vaunted Chinese consumer to a slowdown in the property sector, which was worth
offset any external weakness. about 13% of China’s GDP in 2011 and directly affects
Many local governments, bearing the brunt of more than 40 industries. “It’s hard to do, because the
economic slowdown, have been lobbying for Beijing best way to boost domestic demand is property. It’s
to relax property controls and credit curbs to local the easiest way,” said Mr. Condon. “In some sense, they
projects, according government economists familiar tied their hands behind their backs a bit.”
with the policy-making process. Beijing appears to be sticking to two-year-long
Local governments have seen revenues from campaign to curb property speculation, though
property-related land sales tumbling, as they struggle home prices may be nearing their bottom as the
to repay 10.7 trillion yuan ($1.68 trillion) in debt. government eases monetary policy and local govern-
But Beijing has made clear that it will not repeat ments look for ways around the property restrictions.
another massive fiscal stimulus similar to the one in “At the central government level, they still want
2008, which bolstered growth but left an unwelcome to keep some pressure, at least until the political
legacy of strong inflationary pressures and a potential transition,” said Wei Yao, China economist at Societe
property bubble. Generale in Hong Kong.
Policy makers have so far offered a few modest President Hu Jintao and Premier Wen are due to
and more targeted programs, such as extending make way later this year for a new leadership.
a “cash for clunkers” program to boost car sales “That’s why we are not very positive about the
and offering incentives for consumers to buy more second half. The property sector is still a big drag
energy-efficient appliances. (on the economy).” — Reuters
Long-standing obstacle
general position).” Mr. Gutierrez was also first learned of the risks,” the insurer said. However, the IC deducted the
his replacement from media. “Now, it seems that there is premium paid for reinsurance from the total premium
politics involved here,” another official said. income.“As a company, I am doing the conservative thing
by spreading the risk to reinsurance, but now I am going
Disputed to be penalized for it in the rankings,” the insurer said.
Questions have been raised about the methodology used “If a company takes on the risks alone and something
in the 2011 rankings of insurance companies, released by bad happens to the company, the policyholders will
have nothing.”
regulators on Monday. An official of one insurer that placed
well in the top 10, declined to comment on the topic since
he didn’t agree with the rankings of the Insurance Com- Advantage
mission (IC). The rankings, which use total premium income At the 114th anniversary celebration of the Agriculture
as the main indicator, are biased towards older insurance department last Monday, the agency paid tribute to past
companies, one official explained. Premiums are held by secretaries, with Salvador H. Escudero III, who headed the
insurers for the long term — more often than not, for the department during the Marcos and Ramos presidencies,
entire lifetime of their clients. The top two in the rankings receiving a lifetime achievement award. In his accep-
— Sun Life Financial Philippines (Sun Life) and Philippine tance speech, Mr. Escudero proceeded to give advice to
American Life and General Insurance Co. (Philam Life) — incumbent Agriculture Secretary Proceso J. Alcala, noting
are some of the oldest insurers in the country. Hence, they that Mr. Alcala is among the Cabinet members closest
enjoy a natural advantage in accumulating premiums over to President Benigno S.C. Aquino III. “Because you’re
the years, the official pointed out. “When you compute close to the president, you should use that…for all the
total premium income, that still includes the premiums people that this department caters to,” said Mr. Escudero.
that your grandmother paid,” the official said. The indica- Asked for a reaction, Mr. Alcala, said at the sidelines of the
tor doesn’t show the new premiums accumulated over
the previous year alone, which would show the growth of
event that he is “not at all close” to the president. “[The
president] doesn’t play favorites,” he said. “And even if
the companies. Another complaint involves computation
of total premium income. “As an insurer, you don’t take all
he did, I would not be one to use personal relationships
to my advantage. What I am here to do is to relay the
of the premium paid to you by your client. Part of it, you department’s concerns to the president and present to
pass on to reinsurance companies because they help share him our plans, the same way other agencies do.”
the network. It was my job to go over all the scripts But Pidol’s jokes weren’t just funny. They had a
churned out for taping. Ading would only give me way of making you see certain truths. They made
a piece of paper, no bigger than a restaurant receipt. you laugh because they reminded you of your own
“That’s the script,” Ading would say in his usual vulnerability. If the joke was on Panchito and on
deadpan way. him, it was also on you.
But on the set of Buhay Artista, Ading only But hey, don’t take it too seriously, Pidol seemed
needed to tick off some gag ideas from his “script” to be saying. And don’t let it go to your head. Learn
and bounce them off Dolphy. to laugh at yourself. At your foibles and weaknesses.
“What do you think?” And at the things you aren’t and can’t ever hope to be.
“Ayos iyan,” Pidol would say, breaking into a A Pidol classic was his riposte when asked if he
grin that meant the idea had opened a reservoir of had any plans to become president of the Philippines.
comedy routines filed in his system, going back to “No,” was his reply.
Golay and Opera House days. The rest of the night “Because you might lose?”
would see him shooting gag after gag at Panchito and “No,” he said again. “Because I might win…and
the latter parrying, dodging, grimacing and shooting I wouldn’t know what to do.”
back, to ensure a full hour of laughter. Some of his colleagues could have learned some-
On dry idea nights, the old reliable skits could thing from that Pidol quip. It would have been good
always be summoned, chief among them, Panchito for them. And for the country, too.
singing an English standard and Pidol providing the
Tagalog interpretation. gregmaabenta@hotmail.com
 6 / S1 THE ECONOMY
Country seeks meetings with Thailand
The Philippines may call for
consultations with Thailand as
early as next month to kick off
a fresh arbitration process over
Bangkok’s missed deadline to
reform taxes on imported ciga-
rettes.
“[W]e are proposing a con-
sultation session in Bangkok in
July or August so that we can also
get more information and details
on [Thailand’s] compliance and
then we’ll take it from there,”
Trade Undersecretary Adrian S.
Cristobal said in a media briefing
on Tuesday.
This came, as he noted that
the Philippines remains “vigilant”
and will “aggressively pursue”
Thailand’s implementation of
reforms in customs and fiscal poli-
cies deemed by a WTO ruling as
discriminatory against Philippine-
made cigarettes.
In a status report dated June
14, Thailand has so far imple-
mented only one of several re-
forms it vowed to implement by
May 15, as per an agreement with
the Philippines in September last
year.
“[I]f necessary, we will go for
compensation or suspension of
concessions at the proper time
and in the proper forum,” Mr.
Cristobal said.
ADB okays Three LRT-1 projects delayed anew
$350-M loan
for the youth
The Asian Development Bank
(ADB) has approved a $350-mil-
lion loan for programs aimed
at improving labor skills of
out-of-school Filipino youth
and enhancing the country’s
competitiveness.
In a statement released yester-
day, the ADB said it approved the
Increasing Competitiveness for
Inclusive Growth Program loan
worth $350 million in a bid to
improve the country’s business
climate “through a mix of policy
reforms and programs to promote
competitiveness and develop labor
skills among out-of-school youth.”
The loan will be mainly fun-
neled into labor market integra-
tion and workplace skills develop-
ment projects targeting Filipino
youth along with other initiatives
making the labor market more
inclusive.
Currently, the ADB is working
closely with the Labor department
in designing a youth job search
program, dubbed MyFirstJob,
which will be piloted in 2013.
“The initial pilot will provide
up to 1,600 youth with career
counseling services, grants for
vocational training, and intern-
ships with employers,” the state-
ment read.
Others programs in the pipe-
line include the tourism industry-
led skills development program
and a new tourism quality assur-
ance and accreditation system that
are seen to improve the country’s
competitiveness in the tourism
industry, it added.
Moreover, $100 million will be
taken from the loan to co-finance
a Japan International Cooperation
Agency (JICA) program improv-
ing the country’s competition
policy and best practice regulation
as well as strengthening the cur-
rent public-private partnership
framework.
Despite noting gains in global
competitiveness, Kunio Senga, di-
rector general at ADB’s Southeast
Asia Department, said more needs
to be done.
The country fell two places
this year to rank 43rd in a list of
59 after being ranked 41st in 2011,
according to the latest World
Competitiveness Yearbook by Ge-
neva-based International Institute
for Management Development.
But the report said the waning
attractiveness was traced from
the global economic slowdown,
noting that the country actually
improved in most of the factors
it measured. — A.S.O. Alegado
The country is set to pursue Thailand’s implementation of reforms in taxes on
Philippine-made cigarettes.
The WTO allows complainant
countries to seek compensation of concessions or other obliga-
or suspension of concessions or tions authorized by the DSB shall
other obligations against member be equivalent to the level of the
countries which fail to implement nullification or impairment,” the
rulings within an agreed period WTO noted.
of time.
Compensation is the first yet to identify its next move, with
remedy offered under Article 22 Mr. Cristobal saying that the gov-
of the “Understanding on Rules ernment is yet to assess Thailand’s
and Procedures Governing the reforms.
Settlement of Disputes.”
“Compensation is voluntary of the horse,” Mr. Cristobal said.
and, if granted, shall be consistent
with the covered agreements,” the that aside from reforms it should
WTO said.
If no agreement on compensa- Thailand should also amend its
tion is reached, complainants may legislation by Oct. 15 to ensure that
also move to suspend concessions the same value-added tax applies to
or obligations.
The implementation of
three projects included in the
P1.064-billion rehabilitation
plan for Light Rail Transit Line
1 (LRT-1) has been delayed fur-
ther as the government needs
to resolve new issues to proceed
with the awarding next month,
an official said.
Hernando A. Cabrera, Light
Rail Transit Authority (LRTA)
spokesperson, said projects 1, 3,
and 5 are being questioned after
bids were opened in February.
“There were technical and
legal issues raised by the bidders
[concerning the projects],” Mr.
Cabrera said in telephone inter-
view Monday.
“Some bidders were ques-
tioning the specifications of a
certain project while there were
issues that cropped up for other
projects during the post-bidding
evaluation such as the legitimacy
of the bidders,” Mr. Cabrera said
but declined to be more specific.
Project 1 is the P381-million
rail replacement, Project 2 is the
P150-million systematic replace-
ment of gantry anchor bolts and
Project 4 is the P150-million
rehabilitation of 21 dilapidated
DAR identifies more land
available for distribution
Over 9,000 hectares of land
have been identified for distribu-
tion under the agrarian reform
program, a notice published
yesterday said.
The Department of Agrarian
Reform (DAR), in a notice of
coverage published in a national
broadsheet, announced that 632
properties owned by 612 corpora-
tions, organizations and individu-
als have been placed under the
Comprehensive Agrarian Reform
Law. A total of 921,962 hectares
is still up for redistribution under
the program as of December last
year.
The agrarian reform program
was started during the administra-
tion of the late former president
Corazon C. Aquino in 1988. It was
originally scheduled to run until
2009 but was extended until 2014
through an extension law.
One hundred and eight lands
in the coverage are located in Sor-
sogon, 79 in Camarines Norte, 49
in Western Samar, 42 in Bulacan,
39 in Nueva Ecija, 34 in Pampan-
ga, 33 in Leyte and 31 in Mindoro.
Another 22 lands each are in
Compostela Valley and Lanao del
Norte, 21 are in South Cotabato,
17 each in Bataan and Negros, 16
each in Bohol and Zamboanga
“We stand firm that Thailand
jonathan l. cellona
should follow these deadlines
and we will seek remedies if they
fail to comply,” Mr. Cristobal
noted.
Sought for comment, George
N. Manzano, economist at the
University of Asia and the Pacific,
said in a phone interview that the
Philippines may suspend conces-
sions or obligations on goods for
which it has limited supply.
“Basically, you should imple-
ment the suspension in products
or sectors where there is local
supply or production in order
“The level of the suspension to benefit the local market,” Mr.
Manzano said.
University of the Philippines
economist Ramon L. Clarete
in a separate phone interview,
however, warned that retaliation
The Philippines, however, has will only result in “friction with
Thailand.”
“Now is not the time to raise
that rhetoric… The WTO is a
system where we are supposed to
“Let’s not put the cart in front talk and not point our guns at each
other,” Mr. Clarete said.
The Trade official also stressed “There should be a balancing
have implemented by May 15,
act between urging compliance
to the WTO ruling on one hand
and protecting our relationship
with Thailand on the other,” Mr.
Clarete told BusinessWorld. —
both local and important cigarettes. Kim Arveen M. Patria
units (coaches), according to the
bid bulletin published on Dec. 1.
as “issues need to be resolved first.”
Implementation for Project
Schedule undetermined
Meanwhile, LRTA has not yet
1 was initially scheduled from
February 2012 to September
determined the schedule of open- 2013; Project 2 (March 2012 to
ing of bids for Projects 3 and 5, February 2015); Project 3 (April
which auction has been deferred 2012 to January 2015); Project 4
for four times due to “technical (March 2012 to February 2013);
issues” raised by the bidder, such Project 5 (April 2012 to Septem-
as “copyrights of bogie frames ber 2013), according to the bid
designs” that are being auctioned bulletin.
off, Mr. Cabrera said. The rehabilitation of LRT-1 is
Project 3 is the P184 million part of the P72-billion stimulus
procurement of modified bogie package pledged by the govern-
frames while Project 5, which is ment in October last year in a bid
the P197-million restoration proj- to boost economic growth.
ect for 14 coaches in the system, Of this figure, P6.5 billion has
according to the bid bulletin. been allocated for the rehabilita-
Amid delays, awarding and tion of the LRT-1 and LRT-2 and
implementation of the projects the purchase of new coaches for
1, 2, 4 was moved from July from the Metro Rail Transit Line 3
June. (MRT-3).
“We don’t want to face failure The 20.7-kilometer LRT-1
in procurement so it better to be runs from Baclaran in Pasay to
late but sure,” Mr. Cabrera said. Roosevelt station in Quezon City,
“We are now settling the issues while the 13.8-km LRT-2 runs
and we will try to award projects from Santolan in Pasig to Recto
in July from the June target... the station in Manila.
implementation will follow,” he The 16.95-km MRT-3 runs
added. along EDSA (Epifanio Delos
He also said that the agency Santos Avenue) from North Ave.
has not set a timetable for the im- in Quezon City to Taft Ave. in Ma-
plementation of Projects 3 and 5 nila. — Cliff Harvey C. Venzon
More Filipinos choosing to work abroad
The number of Filipinos
working abroad grew by a tenth
Sibugay, 15 in Zamboanga del last year from 2010, the govern-
Norte, 10 in Aklan, eight each in ment said in a report, as lack
Albay and Antique and seven in of employment opportunities
Quezon. continued to persist.
The notice also included six Results of the 2011 Survey of
properties in Palawan, five each in Overseas Filipinos showed that the
Capiz, Guimaras, Northern Samar total number of Filipino workers
and Davao del Sur, four in Marin- who worked abroad anytime be-
duque, two each in Isabela, Aurora tween April to Sept. 2011 grew to
and Davao Oriental and one each 2.2 million in 2011 from 2.0 mil-
in Quirino and Davao City. lion in the same period in 2010.
Landholdings in Sorsogon Total remittances also grew for
cover 1,651.54 hectares, while the the period, to P156.3 billion from
properties in Camarines Norte the previous year’s P141.2 billion.
total 1,188.407 hectares, Western Remittances from Asia amounted
Samar 740.7668 hectares, Bulacan to P82.6 billion. This was followed
676.7285 hectares, Nueva Ecija by Europe (P13.5 billion) and
625.8734 hectares, Pampanga North and South America (P12.2
373.0404 hectares, Leyte 489.947 billion).
hectares and Mindoro 501.5088 Jorge V. Sibal, dean of the Uni-
hectares. Majority of the other versity of the Philippines School
lands were under the names of of Labor and Industrial Relations,
companies and private individu- attributed the growing numbers
als. of OFWs to the lack of available
The land reform program local jobs.
requires the distribution of all ag- “[Desp er ate] just to go
ricultural landholdings above five abroad, [some OFWs] would
hectares to qualified beneficiaries. work even without contracts,”
A total of 1.034 million hect- Mr. Sibal said.
ares is up for distribution under Overseas contract workers
the CARP extension. As of last — workers with existing work
year, the department had distrib- contracts — comprised 95.3% of
uted a total of 264,880 hectares. the total OFWs. The remaining
This year’s target is 240,247 hect- 4.7% of OFWs worked abroad
ares. — Bettina Faye V. Roc without contracts.
Alternative markets eyed
for country’s banana exports
The government is eyeing
a broader market for its banana
exports through a trade mission
to the Middle East and Europe,
even as it noted that remains
keen on increasing shipments to
China, Trade officials yesterday
said.
“We have a banana mission
to the Middle East and Europe,”
Trade Undersecretary Cristino L.
Panlilio said in a media briefing
on Tuesday.
The trade mission left for Abu
Dhabi and Dubai on Saturday, Mr.
Panlilio said, and it also set for
Italy and Brussels.
The trade mission is part of
the government’s effort to seek
alternative markets for its banana
exports, Trade Secretary Gregory
L. Domingo said.
This came, as the Philippines
has yet to fully resolve heightened
restrictions in China, allegedly
Country still in debt,
says IBON Foundation
Non-government orga-
nization IBON Foundation,
Inc. yesterday said the country
remains in debt despite being
a creditor at the International
Monetary Fund (IMF).
“The country’s external
debt still totaled $62.9 billion
as of March, $79.1 billion if
other debt monitored by the
Bangko Sentral ng Pilipinas
but relegated to a footnote
are included,” IBON said in a
statement.
“And while the country
stopped being a net borrower
from the IMF in 2006, it still
has $11.7 billion in multilateral
debt including $3.3 billion to
the World Bank and $6.0 bil-
lion to the Asian Development
Bank,” the group added.
Outstanding national gov-
ernment stood at P5.1 trillion
as of April 2012, IBON contin-
ued, noting P2.1 trillion of this
is foreign debt.
Last week, the IMF an-
nounced the Philippines has
committed an addition $1 bil-
lion to the fund, in aid of the
crisis-stricken countries in the
euro area.
The country’s commit-
ment was part of the $456
billion in fresh funds from 37
countries.
“It’s an old practice and not
every OFW is directly-hired.
[OFWs without contracts] are es-
pecially vulnerable because they’re
outside the scope of government
protection, cannot be easily traced
by the government and have no
benefits,” Mr. Sibal said.
Mr. Sibal, however, said the
domestic economy is getting bet-
ter and this should translate to
more local jobs.
“If the local economy con-
tinues to improve, the growth in
the number of Filipinos working
abroad would eventually taper off
and decline,” Mr. Sibal said.
More than half (52.7%) of
OFWs worked in Western Asia.
Saudi Arabia remained as the
leading destination of OFWs,
employing 22.6% of the total. It
was followed by the United Arab
Emirates and Qatar with shares
of 14.6% and 6.9%, respectively.
Western Asia is still the top
destination for OFWs because
it has “feminized” its hires, Mr.
Sibal said.
“The construction trend [in
Western Asia] is over. The region
is now hiring more females as
household help and service work-
ers,” he said.
Of the total overseas workers
in 2011, 52.2% were male and
47.8% were female.
WEDNESDAY, JUNE 27, 2012
after pests were discovered on fruit
shipments.
China nonetheless remains
“a big market for bananas,” Mr.
Domingo said.
“We’d like to continue to have
access to that one,” he said further.
The import restrictions were
imposed amid a territorial spat
over Scarborough Shoal, which
had Filipino and Chinese vessels
squaring off in the South China
Sea.
Banana groups earlier sought
government subsidies to minimize
the impact of tighter rules.
The Ag r iculture depar t-
ment meanwhile reportedly
announced that local bananas
have recently been approved
for entry into the continental
United States, after inspectors
completed sanitary and phy-
tosanitary evaluations. — Kim
Arveen M. Patria
“The Philippines is sup-
porting the global efforts to sta-
bilize the world economy and
maintain it on a growth path.
This is the reason why the Phil-
ippines is extending a $1 billion
loan to the IMF,” BSP Governor
Amando M. Tetangco, Jr. said in
a statement last week.
The funds were sourced
from the country’s gross in-
ternational reserves controlled
by the BSP and used to pay for
imports, settle foreign exchange
obligations of the national
government, or to temper the
peso’s volatility.
Latest BSP data shows the
country’s GIR stood at $76.016
billion May, 0.68% below the
$76.538 billion in April.
“Today, our economic fun-
damentals are sound, our banks
are able to meet domestic credit
needs, and we are capable of
lending $1 billion from our
international reserves to the
IMF,” Mr. Tetangco said.
“In effect, by extending a
loan to the IMF that will earn
money for the Philippines, we
are also able to help other na-
tions saddled with financial
problems. Other nations have
also committed to help IMF
address the current financial
crisis.” — Kathleen A. Martin
There was little change from
the 2010 data, where 52.3% were
male and 47.7% were female.
Laborers and unskilled work-
ers accounted for nearly a third
(32.7%) of OFWs.
Service workers and shop and
market sales workers accounted
for 15.5% while plant and ma-
chine operators and assemblers
accounted for 13.6%.
OFWs also worked as trade
and related workers (12.8%),
professionals (10.6%), techni-
cians and associate professionals
(6.0%), clerks (5.5%), officials of
government and special-interest
organizations, corporate execu-
tives, managers, managing pro-
prietors and supervisors (2.9%),
and as farmers, forestry workers
and fishermen (0.4%).
Majority of the OFWs (43.3%)
came from Metro Manila and
its neighboring regions, Cen-
tral Luzon and CALABARZON
(Cavite, Laguna, Batangas, Rizal
and Quezon). Meanwhile, Caraga
registered the smallest share of
OFWs at 1.6%.
The 2011 Survey of Overseas
Filipinos covered OFWs aged
15 years and above and who
were working abroad during the
period between April 1, 2011 to
Sept. 30, 2011. — Luis Nonito
Q. Pasuelo
WEDNESDAY, JUNE 27, 2012 CORPORATE NEWS S1 / 7

Constitution framers shed light on PLDT ownership limits

CONSTITUTION EXPERTS Mr. Villegas said the country tion as well as in the 1935 and pany’s total foreign equity to some “For many years… the SEC “If you go to the Constitu-
told the Supreme Court (SC) had then been known as “the sick 1973 texts. 35% from the current 65% even as has taken the view that ‘capital’ tion, it says only 60% of capital
yesterday that the framers of man of Asia” and needed foreign This is contrast to the high it appealed the SC decision. refers to the total sum of capital [should be owned by Filipinos].
the law did not have specifics in investments at the time when the court’s ruling in June 2011 that The case had stemmed from stock irrespective of their nomen- If you want to understand what
mind when they drafted limits Constitution was being drafted. the Constitution “refers only to a complaint filed by PLDT stock- clature or classification as com- capital means, go to FIA (Foreign
on foreign ownership of utili- “You have to really interpret it the shares of stock entitled to vote holder Wilson P. Gamboa who mon preferred or non-voting,” Investments Act of 1991),” the
ties, contrary to the court’s more in the context of circumstances,” in the election of directors…and claimed that the telco was in viola- said SEC Commissioner Manuel magistrate said.
definitive interpretation last year Mr. Villegas said. not to the total outstanding capital tion of the equity rule. Huberto B. Gaite. The court, after the oral argu-
involving the Philippine Long Mr. Bernas, for his part, said stock” in determining whether The Securities and Exchange “[But] should the court rule ments, then ordered all parties to
Distance Telephone Co. (PLDT). the law did not explicitly define PLDT complied with the 40% Commission (SEC), a respondent on the finality of the definition submit their memoranda within
Fr. Joaquin G. Bernas and Ber- the meaning of “capital” when re- foreign ownership limit. in the case, for its part asserted of capital, the SEC will follow its 30 days, after which the case will
nardo M. Villegas, who had both ferring to the shares of a Filipino- The telco has since then pre- yesterday that contrary to the pe- interpretation,” he added be up for resolution.
been part of the commission that owned corporation. pared the issuance of 150 million titioner’s claims, it had not been However, acting SC Chief Jus- Mediaquest Holdings, Inc., a
created the 1987 Constitution, He noted that the basis for common shares to Filipino inves- “negligent” in its duties in making tice Antonio T. Carpio countered unit of PLDT’s Beneficial Trust
discussed the context behind the 60-40 rule was not also clearly tors, particularly to its Beneficial sure that the PLDT is still owned that laws have been clearly against Fund, has a minority stake in Busi-
provision during oral arguments. specified in the 1987 Constitu- Trust Fund, to lower the com- by Filipinos. SEC’s interpretation. nessWorld. — A. E. Barrameda

Frontier Oil prepares IPO

totaling up to $50 million
EXPLORATION FIRM Frontier million, BioProspect would hold
Oil Corp., which has stakes in approximately 13% of the issued
prospects in the Cagayan Val- common stock of Frontier Oil on
ley, the Visayan Basin, and the a post initial public offer basis,”
offshore Palawan, is preparing the firm said.
an initial public offering (IPO) Frontier Oil and its parent
worth up to $50 million on the firm Frontier Gasfields hold sev-
local bourse. eral oil and gas exploration con-
“Frontier Oil is currently final- tracts in the Philippines.
ising the acquisition of a number It has a 30% interest in service
of oil and gas projects in the contract 52 in the Cagayan Valley.
Philippines ahead of a planned Service contract 52 is operated
$30-50 million IPO on the Phil- by E.F. Durkee and Associates,
ippines Stock Exchange (PSE),” Inc. Other companies that have
Australia-based firm BioProspect an interest in the area are Monte
Ltd., which until recently held Oro Resources and Energy, Inc.
a 50% interest in Frontier Oil’s and Philippine National Oil Co.-
parent firm, said in a disclosure Exploration Corp.
to the Australian Stock Exchange Frontier Oil also holds a 15%
dated June 19. interest in service contract 69 in
BioProspect said it is poised to the Visayan Basin after it farmed
acquire a 35% stake in Frontier Oil into the interest of Trans-Asia Oil
represented by 430 million newly and Energy Development Corp.
www.maxicare.com.ph
offered shares after it entered into a The service contract 69 con-
MAXICARE Healthcare Corp. expects sales to hit P5.5 billion this year versus P4.25 billion in 2011 on efforts to offer more services and expand its network in the country.
share sale and exchange agreement sortium is led by NorAsian Energy

HMO Maxicare aims to grow revenues by 30%

with Frontier Gasfields Pty. Ltd. Ltd. with a 70% stake.
“Under the agreement, Bio- Frontier Oil also has a stake in
Prospect has agreed to exchange service contract 55.
its 50% shareholding in Frontier Service contract 55, which
Gasfields, and cancel its option to covers 9,000 square kilometers MAXICARE HEALTHCARE by 18.06% from the P3.6 billion “We are definitely focused on pital, the Capitol Medical Center,
increase its shareholding to 75%, in the Southwest Palawan Basin, Corp., a health maintenance recorded in 2010. expanding our presence,” said Ms. and the De La Salle University
in consideration of it receiving is located within a regional oil organization (HMO), aims to Mr. Gines added that the Malaluan. Medical Center in Dasmariñas
newly issued shares of the com- and gas fairway that extends from grow sales by some 30% this company’s current investments The official said the firm plans within the year.
mon capital stock of Frontier Oil,” offshore Borneo in the southwest year as it expands its services and are mainly focused on acquiring to establish more regional offices “We are also opening a new
BioProspect said in the disclosure. to offshore Philippine oil and gas nationwide membership base, an new technology and improving and primary care centers. wing in the Makati Medical Cen-
Each of the 430 million shares production assets northwest of official yesterday said. its ongoing services to cater to “We’re opening three new sat- ter,” she added.
has a par value of P1 per share. Palawan. “We are hoping to reach rev- more people. ellite offices in Luzon, which will The firm is also introducing a
With the newly issued shares, The local bourse had earlier enues of P5.5 billion this year, “We want to improve our be in Batangas, Pampanga, and new product called My Maxicare
Frontier Oil is expected to increase said it expected at least 10 petro- and maybe P5.5 to P6 billion by products for our current custom- Baguio. For Visayas and Mind- Lite, which is a prepaid card for
its authorized capital stock upon leum and renewable energy firms next year as we hope to increase ers while introducing new initia- anao, we’re expanding our current in-patient medical care for six
approval from the Securities and to list after it eased IPO rules for our membership to one million tives to attract other parts of the offices in Bacolod, Iloilo, Cagayan diseases, namely: dengue, malaria,
Exchange Commission. the sector. by 2013,” said Jean Paul I. Gines, market,” he said. de Oro and General Santos,” Ms. cholera, typhoid and paratyphoid,
These shares will also be sub- The supplemental require- Maxicare vice-president for fi- Membership is currently at Malaluan said. gastroenteritis, and pneumonia.
ject to escrow for one year from ments became effective last Sep- nance on the sidelines of a briefing over 700,000 card holders, 900 The company, she added, has This should help the firm tap
Frontier Oil’s planned listing on tember 2011. It seeks to relax on the occasion of the firm’s 25th corporations and over 2,000 also opened more customer care into a wider customer base, said
the PSE. the one-year operating history anniversary. small-to-medium enterprises, said help desks in its key providers and Jose Pastor Z. Puno, Maxicare
“Should the listing raise the requirement of the second board The firm posted P4.25 bil- Armi C. Malaluan, the firm’s vice- will open similar facilities in the president and chief executive. —
maximum targeted amount of $50 listing rules of the PSE. — ENJD lion in sales revenue last year, up president for sales and marketing. University of Santo Tomas Hos- Bettina Faye V. Roc

DEBT WATCHER Philippine

Rating Services Corp. (PhilRat-
ings) has given Manila North
MNTC gets top credit score hikes have since eased. The current
decline in fuel costs is expected to
lessen travel expenses and further
Bloomberry agrees to help
Tollways Corp. (MNTC) its high-
est corporate credit score of PRS
flow generation, its stable core
income, and the relatively resilient
MNTC’s free cash flow, mean-
while, which stood at P3.4 billion
boost MNTC’s top line results,”
said PhilRatings. fund airport road project
Aaa, it announced in a statement demand for the company’s toll was “sufficient to cover current MPIC is a unit of Hong Kong’s
yesterday. services.” debt, as well as interest payments.” First Pacific Co. Ltd., which partly BLOOMBERRY RESORTS Corp. Construction is expected to
PhilRatings said the rating MNTC, a unit of Metro Pacific The firm had also recorded owns Philippine Long Distance has agreed to provide fund- begin sometime this year until
took into consideration the toll Investments Corp. (MPIC), is the a 20.8% hike in its net income Telephone Co. (PLDT). ing for a road project earlier 2015, earlier reports show.
operator’s financial position, its concessionaire for the North Lu- in 2011 from the previous year, Mediaquest Holdings, Inc., a described as a link between its The government said it wants
services, as well as other informa- zon Expressway. The company’s with earnings amounting to P1.6 subsidiary of PLDT’s Beneficial casino complex and the Ninoy to offer the NAIA Expressway as
tion and projections about the cash flow from operations, said billion. Trust Fund, has a minority stake Aquino International Airport the next public-private partner-
company. The score, it said, was PhilRatings, had posted a 14.4% “Up until March 2012, gas in BusinessWorld. — Bettina Faye (NAIA), the firm disclosed to the ship (PPP) deal this month.
based on MNTC’s “strong cash surge to P3.6 billion last year. prices were still rising but such V. Roc bourse yesterday. Since the NAIA Expressway
The firm’s board of directors will be a link to PAGCOR’s En-
has agreed to allow the signing of a tertainment City in Parañaque,

Trump sons note sophistication of local market memorandum of agreement “with

the Philippine Amusement and
Gaming Corp. (PAGCOR), to-
the government had said funding
could come from licensees in the
area.
TWO SONS of American real es- scious period in history,” Erick gether with the other licensees of PAGCOR had earlier said
JONATHAN L. CELLONA

tate tycoon Donald John Trump Fredrick Trump, who also holds PAGCOR in the Bagong Nayong project proponents were open to
yesterday led launch ceremonies the position of executive vice- Pilipino Entertainment City, for help fund the project and con-
for a namesake condominium president, said. an infrastructure support facility tributing at least P1 billion each,
in Makati City, signaling what “This is very true in the world, for the NAIA Expressway project,” with the amount to be reckoned
they said was global recognition and specifically true in Asian mar- a disclosure read. as part of their investment com-
of the local market’s growing kets and in the Philippines,” the Bloomberry is building the mitment.
sophistication. younger Trump said. five-star Solaire Manila casino In the meantime, Bloomberry
“We are excited in bringing the “People are very aspirational resort in the complex, which will has began construction on a 300-
brand to the Philippines, a coun- these days. They want to live the also feature similar projects by de- room hotel as part of the Solaire
try that has done so well as of late most luxurious property… And velopers Travellers International Manila casino-resort on March 30.
and as of recent years…” Donald it makes sense here in the Phil- Hotel Group, Inc., SM Consor- According to earlier reports,
Trump, Jr. the tycoon’s eldest son ippines, which is becoming an tium, and Tiger Resorts Leisure the first phase of the 14-storey
and the Trump Organization’s international destination and such and Entertainment, Inc. Solaire Manila will feature an
executive vice-president, said in a incredible city. It really fits our The planned NAIA road proj- 11-storey hotel atop a three-level
DONALD John Trump, Jr., executive vice-president at Trump Organization addresses
a briefing. brand perfectly,” he added. ect is a P13.575-billion, four-lane podium, as well as a 10-storey
the press before launching ceremonies of a namesake tower in Makati City yesterday.
“People have started to under- The older brother went on elevated expressway that will run parking building, with the casino
stand brand quality construction, The project, which was an- As of May, the company said to declare that more projects are 5.2 kilometers from the airport to and gaming area alone expecting
and when it came time for us to do nounced in September last year, is it had already sold 67% of the underway for the Philippines. Roxas Boulevard according to the to occupy some 22,268 square
a project in the Philippine market, a $150-million, 56-storey residen- tower’s 220 residential units priced “This will not be our last Department of Public Works and meters.
we partnered with the people tial development. It is owned and at around P200,000 per square project in the Philippines and we Highways Web site. Its shares closed at P8.87
who can do the best,” he added, developed by a unit of Century meter. are looking forward to rolling out It was approved by the Na- apiece yesterday, down by 0.34%
referring to the so-called Trump Properties Group, Inc. Turnover “There is no question that, more a couple of things,” he said. tional Economic and Develop- from its previous close. — Emilia
Tower Manila. of units is slated for 2016. right now, we live in a brand con- — Cliff Harvey C. Venzon ment Authority Board on May 31. Narni J. David
 8 / S1 MOTORING ARNOLD E. BELLEZA EDITOR WEDNESDAY, JUNE 27, 2012

Good luck getting one BRIEFS

Porsche cited in survey Motul partners with Zytek

J.D Power and Associates, in its “Initial Quality
Study” on customer satisfaction, gave the Porsche
911 – the icon of the Stuttgart-based sports car
manufacturer – first place. The Panamera sports
saloon came in third in the luxury car segment
and the sporty Cayenne SUV was in 6th place. In
the brand ranking, Porsche came in second out
of a total of 34 international automakers covered
in the survey. In its evaluation of production sites,
the main Porsche plant in Stuttgart-Zuffenhausen
won second place in Europe and the Leipzig plant
came in sixth.
High performance competition lubricant special-
ist Motul has announced a new technical partner-
ship with Zytek Engineering Limited. Motul has
been named as Zytek’s official lubricant and will
be working closely with them on development
of the engines, supplying oils for all Nismo power
plants and offering on-track technical support.
The fluids will be provided through Motul’s as-
sociate company, MotulTech In the Philippines,
Motul is exclusively distributed by Autoplus
Sportzentrium. Call 726-0399 or visit http://www.
motul.com.ph for more details.

NOT SO FAST
TITO F. HERMOSO Two that matter
Good news! Agricultural production is climbing,
thanks to shorter dry seasons since 2006. Summer water
and power shortages are becoming a thing of the past.
The downside? It’s bad weather for construction, which
Winnie Monsod recently pointed out barely contributed
to the record GDP growth posted this first quarter.

FUN TO DRIVE: The Toyota 86.
There’s something to be said about doing things
big. Staging a car launch over two days certainly qualifies,
which is just what Toyota Motor Philippines Corp. did
last week when it debuted the much-awaited 86 sports
coupe.
The world’s been teased long enough, first with parent
Toyota Motor Corp. and Fuji Heavy Industries’ Subaru a
few years back unveiling what became quickly known as the
“Toyobaru” or “Subayota” concept, the production version
of which finally started delivery this year.
In the Philippines, TMPC went the route of staging
“sightings” around the metropolis and releasing ads with
the 86 piston logo – itself a nod to the Subaru boxer engine
under the hood, whetting buyer appetite and setting the
automaker up for the happy problem of matching demand
with limited supply.
Demand there will be, no question, given the extremely
attractive price point the 86’s being offered at. Forget about
getting your itch scratched if you’re signing up just now,
however: the Philippines’ been allotted less than a hundred
units this year – numbers being bandied about revolve
around 70, a ration said to be already sold out save for a few
display/test units. The rumor mill has it that four - some
say two – are going to San Miguel’s Ramon Ang, a known
auto aficionado.
Last week’s launch was a canny marketing move, with
TMPC also inviting car clubs and clients to the unused
Subic International Airport where, just before the sun
set, all were treated to the sight of the carmaker’s entire
domestic lineup racing down the runway before being ar-
ranged as a backdrop for, first, a drifting display of Corolla
Levin/Sprinter Trueno AE86s – the new coupe’s spiritual
predecessors.
A very long pause followed, then the view of an 86
convey that, upon reaching the front of the crowd, broke
up for a fresh drifting display. Delighted screams and ap-
plause, naturally.
The obligatory party followed, with an eclectic mix of
rock songs, Pinoy love ballads and even the Voltes V theme
song thrown in at one point by the event-appropriate
Draybers band. A lucky few managed to score rides later
in the evening, latching on to TMPC President Michinobu
Sugata’s being unable to keep away from the AE86s – in
his afternoon speech he spoke of having owned, and then
regretting selling, one in his youth – that had been brought
in for the occasion.
The rest of us were content to wait for the following
day, which promised two opportunities – a straight runway
run and a handling exercise – to actually drive the 86. What
we weren’t told was that for our timeslot there would only
be 100 slots available and that the runway had to be closed
before lunch, so a few in the media contingent weren’t able
to score full drives, this writer fortunately not included.
While the runs were really too short to explore what
the 86 is really capable of, they validated what prelimi-
nary reviews have already said: the car’s a joy to drive. It’s
not about straighline acceleration, though there’s plenty
enough of that, it’s about handling: the 86 keeps itself
planted firmly and is so well-balanced that you’d want to
keep flinging it about.
The weather is just one of the many upgrade and the link to LRT-1 either. The
hurdles of a DPWH trying to catch up with squabble with Stradcom hasn’t been laid to
more than a quarter century’s worth of in- rest and a rebid for outsourced electronic
frastructure backlog. In mid 2010, things got data processing for the LTO was challenged
Part of that’s due to the fact that we were prohibited
worse when the new administration ordered in court by Amalgamated Motors, Inc. The
from turning off stability control – with a co-driver on
a top to bottom review of many ongoing and DoTC cancelled the North Rail project at
board to check compliance – although I have it on good
approved projects from the GMA era. And great penalty cost but without an Option B,
authority that, within reason, full-on manual’s even more
since the new administration is pushing for apart from tossing between a NAIA-DMIA
of a delight.
the PPP, its enhanced “fairer” version of the rail link or high speed rail. A pity as North
Yet it comports itself well enough, and doesn’t look
BOT law, the DPWH is working quadruple Rail successfully cleared 50 years of squat-
overstyled to the point of being in-your-face, that it can
time making feasibility studies to attract ters on the PNR Rail right of way. And what
be used as a daily drive.
private investors to bankroll infrastructure about the new navigation and air traffic
Prospective family men looking to justify a purchase
investment. All this is on top of programed control system after the Sumitomo/Thales
with the fact that it’s a four-seater will have to rein in ex-
projects and maintenance that the depart- deal was cancelled?
pectations. While the front two bucket seats are comfort-
ment does year in and year out. Recently, the DoTC declared that it
able enough, the rear two (folding) will only fit children
To denizens of Metro Manila, the would undertake the LRT 2 extension to
or the vertically challenged. Use the space instead to park
DPWH’s currently visible projects, both Masinag. We say the government should
your stuff. The trunk’s got depth but is shallow; blame
rehabs and new, are the Buendia flyover, regulate business but not be in business.
the dearth of rear space to the coupe and rear-wheel drive
Araneta-Quezon Ave. underpass, EDSA-P. Being the regulator makes the government
configuration. Perhaps letting the wife take a spin will do
Tuazon U-turn, Sales-Nichols interchange, an unfair competitor, even if it claims to
the trick, although then you’ll probably have the problem
Katipunan-Commonwealth flyover and of get good credit terms. Given if the DoTC
of taking it off her hands.
course, it wouldn’t be summer without the contracts operations and maintenance to
Leather, chrome and red accents dominate the interior;
annual concrete blocking of EDSA, a tradi- private companies, the department still has
the latter even extends to the instrument display illumina-
tion since 1980. The DPWH wisely chose to to raise train fares to reduce the bleeding of
tion. If there’s a niggle it will have to be the stock head unit,
approve both cross town expressway propos- the light rail mass transit system and allow
a bland green-lit affair that does put out decent sound. Not
als, the Skyway Stage 3 and the NLEx-SLEx a reasonable rate of return for any private
a problem really, and dealers will surely offer an option that
connector. concessionaire to deliver good service. Popu-
includes an LCD display and GPS navigation.
Meantime, while the Sales interchange list politicians can call low fares consumer-
The 2.0-liter naturally aspirated four-cylinder boxer
rehabilitation is going on, the DPWH will friendly to reap votes, but the rest of the
engine delivers 200 hp and 205 nm of torque. There’s the
have to resolve that unsafe railroad cross- country, which does not benefit from low
choice of a six-speed automatic (paddle shifters included)
ing from the East Service Road to the SLEx train fares, unfairly foots the bill.
or manual transmission gearbox. The design of the Subaru-
under the Nichols-Sales Interchange. Whatever happened to the French made
made powerplant – part of the supply shortage is said to
The department now has plans for a modular, adjustable and portable Ro-Ro
be the limited capacity of the Japan plant – allows it to be
dream network of interlinked expressways ports? It was faulted for being too hi-tech,
placed low, giving the 86 a center of gravity that’s perfect
covering Luzon. Then it tickled the public’s too expensive – but compared to what? Com-
for sporty driving that’s aided by a limited slip differential.
fancy and alarmed the traffic agencies when pared to concrete piers that take far longer
The weight distribution’s nearly 50:50, another plus, and
it proposed the EDSA Skyway. to build, are not transferable and cannot
the entire package tops out at just 1,298 kilos.
Just as vital to infrastructure is the DoTC. accommodate the majority of landing craft
Stopping power’s provided by 16- and 15-inch ven-
Former Transportation Secretary Ping de in changing tides? It’s like comparing apples
tilated disc brakes at the front and rear, respectively, and
Jesus inherited a long list of projects from to oranges. If the French Ro-Ro warranty
215/45 R17 Michelins. There’s front, side, curtain and
his predecessor, Larry Mendoza, to which he was void because all installation sites beside
driver’s knee airbags, and all passengers get three-point
added still more. The long consolidated list existing concrete ports and new ones were in
ELR seatbelts.
includes the TRB approved expressway toll the open sea, then why not re-bid the proj-
The 86 will be available in six variants, starting with the
hikes, train fare increases, MRT-LRT loop, ect using modular, adjustable and portable
2.0 M/T (P1.55 million), 2.0 M/T in White Pearl (P1.565
LRT-1 extension, LRT-2 extension, LRT-7, specifications? It doesn’t make sense to go
million), 2.0 A/T (P1.65 million), 2.0 A/T in White Pearl
train signaling upgrades, additional coaches, back to ancient specifications just because
(P1.665 million), 2.0 A/T Full Option (with an aero kit,
upgraded electronic data processing for the the terms of the cancelled winning French
P1.86 million) and 2.0 A/T Full Option in White Pearl
LTO and the LTFRB, the Stradcom mess, bid were allegedly disadvantageous.
(P1.875 million). The first ten units that were at the Subic
North Rail, South Rail, culling of colorum And what about the toll hikes for the
launch were in base configuration, although there was one
buses, wholesale TESDA retraining of public STAR and the SCTEx due January 2012?
in TRD kit that was not part of the test.
utility drivers, mandatory motor vehicle What’s keeping the DoTC’s TRB from acting
Subaru’s version, the BRZ, is expected to make its local
inspection, multi-character plate numbers, on a done deal? The delay in raising tolls at
debut later this year and is expected to come at a higher
uniform standards for road side smoke the SCTEx means less income for the BCDA.
price point. For those seeking bragging rights, try import-
belching testing, airport upgrades, naviga- The BCDA was supposed to hand over the
ing the Scion FR-S, which how Toyota is branding the 86
tion equipment rehabilitation, modular and operations of the SCTEx to Metro Tollways
to the younger generation in the US.
adjustable Ro-Ro ports and many more. last year so headaches like paying interest on
Colors include Sterling Silver Metallic, Lightning Red,
These all came to an abrupt end one year the loan to the JBIC and subsidizing opera-
Galaxy Blue Silica, Dark Gray Metallic and Crystal Black
later when Ping and his team resigned. tions from low toll fees or low volume would
Silica. An Orange Metallic version will be available once
Then Mar Roxas took over. Secretary not be its problem. But the Palace continues
the kitted-out options become available.
Roxas is no stranger to the workings of the to sit on the long delayed Metro-Tollways
The base model’s more than enough for most, truth to
government and the government working integration of SCTEx.
tell, and it’s good that Toyota – more known for conserva-
with the private sector during the pre-Hyatt Still Mar’s DoTC has delivered. There are
tive yet dependable offerings – is pushing through with the
10 days of the reign of GMA. At the DTI, lots of airport upgrades up for bidding and
promise to make its vehicles “Fun to Drive, Again”. — AEB
Mar crossed swords with the DoF and the they are doing a marvelous job restoring the
BIR in reforming automobile excise taxes. NAIA 1 to its original Lindy Locsin glory,
His success revived and expanded the local which should do Imelda Marcos proud.
auto industry which is now performing even Perhaps, Mar would make a fine Tourism
better than its best years before the 1997 Secretary, in case he tires of the DoTC.
Asian Financial crisis. Even before Noynoy In the early days of this Aquino admin-
Aquino took his oath as our 15th president, istration, a weather bureau chief was sacked
Mar already waged war against red tape in because a storm diverted from PAGASA’s
the DTI. As senator, Mar also pushed for a forecast position. Surprise, surprise as nature
rather controversial version of the Generics shows man who’s boss, just to spite him.
Drugs Act. Nature picked a no-contest loser in PAGASA
But at the DoTC, we’ve heard little of because its antiquated equipment is beyond
what Mar has done to the long laundry list repair and whatever is working is obsolete.
that Ping left behind. Sure, the DoTC is lend- Later, the administration disregarded Su-
ing a helping hand to the PPP, as it should, preme Court decisions and imprisoned an
but did it have to treat ongoing projects and ailing ex-president and sitting congress-
proposals initiated by the previous admin- woman in a hospital. After that, it skewered
istrations as suspect in concept and intent? the chief justice in a demeaning public trial.
Well and good that the DoTC has dumped If only the same “take-no-prisoners”
projects it found disadvantageous to govern- determination and zeal was applied to
ment, but what replaced these? moving all those DoTC projects in limbo,
The DoTC did not like the terms of then headlines wouldn’t be all about the
the service contract for the MRT upgrade government being summary judge-jury-
but it hasn’t prioritized that sorely needed executioner to foes.
WEDNESDAY, JUNE 27, 2012
WikiLeaks suspect wins
battle over US documents
FORT MEADE, MARYLAND —
A US military judge has ordered
prosecutors to show they are
not withholding evidence from
WikiLeaks suspect Bradley Man-
ning after defense lawyers ac-
cused them of hiding documents
that could potentially help their
client’s case.
The ruling was a victory for
Mr. Manning, whose defense team
has argued for months that pros-
ecutors are dragging their feet on
requests for government files that
could prove crucial in the trial of
the Army private.
Mr. Manning, 24, accused
of handing over a massive trove
of classified documents to the
WikiLeaks Web site, smiled at his
attorneys after the judge read out
her decision at a pre-trial hear-
ing at Fort Meade, northeast of
Washington.
Judge Denise Lind ruled that
prosecutors would have to turn
over reports from the CIA, the
FBI, the State Department and the
Office of the National Counterin-
telligence Executive that assessed
the impact of the leaks.
Mr. Manning’s lawyers believe
the assessments will show the
disclosures had no major effect
on the country’s national security
and did not “aid the enemy” as the
government alleges.
But the judge ruled against a
request for documents related to
WikiLeaks from the House Com-
mittee on Oversight and Govern-
ment Reform, saying it was not
relevant to the case.
Rising inequality to dominate Mongolia polls South Korea to halt Iran oil
ULAN BATOR — Mongolians
will vote on Thursday to elect
a new parliament tasked with
distributing the spoils of a min-
ing boom that has brought rapid
growth but also rising inequality
to the resource-rich nation.
Mongolia’s economy has ex-
ploded in recent years, as a rela-
tively stable political environment
has drawn in foreign investors keen
on exploiting its vast untapped
reserves of coal, copper and gold.
Foreign investment quadru-
pled last year to nearly $5 billion,
according to government data, but
little of that has trickled down to
the poorest of Mongolia’s 2.8 mil-
lion people.
The ruling Mongolian People’s
Party (MPP) and the main oppo-
sition Democratic Party both say
they want to ensure a fairer distri-
bution of wealth in the vast and
remote nation, although neither
has given any detailed indication
of how.
“The issue now is how the par-
ties will use the further proceeds
of mineral wealth coming into the
country,” said Jargalsaikhan Dam-
badarjaa, a Mongolian political
commentator and television pre-
senter. “One thing that is for sure
is that they will not be giving out
ATHENS — Greece’s new finance
minister resigned on Monday
due to ill health, throwing the
government’s drive to soften the
terms of an international bailout
into confusion less than a week
after it took office.
Vassilis Rapanos, 64, chairman
of the National Bank of Greece,
was rushed to the hospital on Fri-
day before he could be sworn in,
complaining of abdominal pain,
nausea and dizziness.
The mild-mannered banker,
who was imprisoned by a military
junta in the 1970s, has a history of
ill-health.
The office of Prime Minister
Antonis Samaras, who only took
office last Wednesday follow-
ing a June 17 election, said Mr.
Rapanos’s resignation on health
grounds had been accepted.
Mr. Rapanos said in his resig-
nation letter: “Following discus-
sions with my physicians, I have
concluded that my health would
not at the moment allow me to
carry out my duties fully.”
Mr. Samaras has only just
emerged from hospital himself
Under Ms. Lind’s decision, the
prosecution will have to give a de-
tailed account showing it met legal
obligations to share all pertinent
evidence with the defense.
In a statement of “due dili-
gence,” the prosecutors would
have to show when they obtained
documents, why they were not
shared with the defense and to
what extent they had queried
dozens of agencies about relevant
papers, she said.
The judge imposed a deadline
of July 25 on prosecutors but
indicated she would be willing to
give them more time if necessary.
Mr. Manning’s civilian attor-
ney, David Coombs, had asked
the judge to suspend the pro-
ceedings while the prosecutors
prepared their “due diligence”
statement, but that request was
not granted.
Ms. Lind did leave open the
possibility that the defense could
ask for time to review any new
evidence that emerges.
Mr. Coombs had argued ear-
lier Monday that government
prosecutors had displayed a “pat-
tern” of obstruction on document
requests that “should cause alarm
to the court.”
The government’s explanation
for why some files were unavail-
able “defies logic” and violated
the bedrock legal principle that
a defendant must have access to
the same evidence as his accusers,
Mr. Coombs said. “This is not the
way the discovery process works,”
he added. — AFP
any more cash payments to any-
one. We are tired of the conflict of
interests and using public money
for their political purposes,” he
told AFP.
Before the last parliamentary
elections in 2008, voters were of-
fered cash payments of up to
1.5 million Mongolian tugrik
($1,130) as the leading parties at-
tempted to gain political capital
from the economic boom.
That practice has been banned
this year. But what politicians
do with the proceeds of foreign
investment has become a major
election issue, with more than $1
trillion worth of mineral deposits
yet to be extracted.
The vast wealth pouring into
Mongolia has also led to accusa-
tions of large-scale political graft
— including against former presi-
dent Nambar Enkhbayar, who was
charged with corruption earlier
this year.
Mr. Enkhbayar, who broke
away from the MPP last year to
form his own party, has also been
barred from standing for a seat in
parliament — a move he says is
politically motivated.
He denies the corruption
charges and opinion polls suggest
his Mongolian People’s Revolu-
Greek finance minister resigns in a blow to new gov’t
after undergoing eye surgery to
repair a damaged retina. Both he
and Mr. Rapanos had already said
they would not be able to attend
the June 28-29 European summit.
It was a chaotic start for the
new government, formed after
the second election in a month
and facing huge domestic op-
position to a harsh international
bailout and steadfast European
opposition to any watering down
of its terms.
Only hours before Mr. Rapa-
nos’s resignation, a hospital bul-
letin said he would be discharged
on Tuesday. He had undergone a
gastroscopy and colonoscopy, an
official at the Hygeia Hospital told
Reuters on condition of anonym-
ity. The tests “showed everything is
completely normal,” it said.
According to a source from
one of the three parties in the new
coalition government, Mr. Rapa-
nos had been under heavy pres-
sure from his family to turn down
a job in which he would have been
Turkey assails Syria’s warplane attack
US denounces UN’s ‘colossal failure’
DAMASCUS — Turkey has told
the UN Security Council that
Syria’s downing of one of its
fighter jets poses a “serious threat
to peace and security,” as Da-
mascus insisted the plane had
violated its airspace.
The United States meanwhile
denounced the UN’s “colossal
failure” to protect civilians inside
Syria as the death toll there con-
tinued to mount.
And a Syrian general was
among a new group of officers
and soldiers to defect and join
the growing rebel ranks in Turkey.
Turkey, in a letter to the United
Nations Security Council and UN
chief Ban Ki-moon, said Monday
its plane had gone down in inter-
national airspace.
“The aircraft did not display
any hostile attitude or maneuver
and was flying with its identifica-
tion systems open. The shooting
came without any prior warning,”
said the letter which was obtained
by AFP.
Turkey’s UN ambassador Er-
tugrul Apakan said the incident
was “a serious threat to peace and
security in the region, in the con-
text of the Syrian crisis” but did
not call for the world body to act
against Damascus.
Syria continued to insist that
its downing of the Turkish F-4
Phantom jet on Friday had been
justified.
“The Turkish warplane vio-
lated Syrian airspace, and in turn
tionary Party (MPRP) will suc-
ceed in snatching a significant
number of votes from the MPP.
One poll conducted this
month by the independent Sant
Maral Foundation showed the op-
position Democratic Party in the
lead with 42% of the vote, while
just 28% said they would support
the Mongolian People’s Party.
A coalition of Mr. Enkhbayar’s
MPRP and the Mongolian Na-
tional Democratic Party (MNDP)
was close behind with 24% —
double the support they achieved
in an April opinion poll.
Luvsandendev Sumati, head of
the Sant Maral Foundation, said
many Mongolians believed the
ruling party had mishandled Mr.
Enkhbayar’s case, costing it votes.
The MPP — Mongolia’s old-
est party — and the Democratic
Party have spent much of the last
decade in power together as part
of a coalition. Some in Mongolia
see both parties as serving their
own interests at the expense of an
adversarial political system.
“People really don’t like the
parties because they have been
working together for years,” said
Bayanjargal Oyuntuya Khatgiin,
a 27-year-old Mongolian student
who is supporting an indepen-
charged with negotiating a soften-
ing of the bailout terms.
Earlier on Monday the three
party leaders had announced a
transatlantic road show to try
to persuade skeptical lenders to
give them more time to repay the
country’s massive debt.
Troika visit postponed
The medical problems of
Messrs. Samaras and Rapanos
had also forced a postponement of
the first meeting between the new
government and Greece’s “troika”
of international lenders, originally
slated for Monday. A new date has
not been set.
Mr. Samaras’s government,
an unlikely alliance of right and
left that emerged from the June
17 election, has promised angry
Greeks it will soften the punish-
ing terms of a bailout saving them
from bankruptcy in exchange for
deep economic pain. But euro
zone paymaster Germany has
rejected major concessions. Berlin
signalled on Monday that Europe
Syrian air defenses fired back and
the plane crashed inside Syrian
territorial waters,” Syrian foreign
ministry spokesman Jihad al-
Makdissi said Monday.
“What happened is a gross
violation of Syrian sovereignty,”
he added.
The incident has reignited
international concern over the
Syria conflict.
European Union foreign min-
isters meeting in Luxembourg
condemned the attack and an-
nounced new measures targeting
Syrian government ministries and
companies, including a bank and
a television channel.
But a day ahead of a NATO
meeting called at Turkey’s request,
the ministers also warned of the
dangers of a military escalation
in the crisis, and praised Turkey’s
“measured and responsible initial
reaction.”
NATO members Britain,
France and the United States have
all condemned Syria, with Britain
saying Damascus should not be
allowed to act with impunity.
German Foreign Minister
Guido Westerwelle said it was “im-
portant that all forces understand
that de-escalation is now decisive.”
Turkey called Tuesday’s emer-
gency NATO meeting by invok-
ing Article Four of the alliance’s
founding treaty, which covers
threats to members’ security.
“The facts in our possession
show that our plane was hit by a
dent candidate at this year’s polls.
“They say that both parties are
too close and that everybody has
become corrupt.”
Landlocked Mongolia, wedged
between China and Russia, shook
off seven decades of communist
rule in 1990 without a shot being
fired, and held its first elections
in 1992.
Since then, its transition to
a democratic capitalist state has
been largely peaceful, although
accusations of vote-rigging in
the 2008 parliamentary elections
resulted in deadly riots.
A range of new measures have
been introduced in this year’s elec-
tion to boost transparency, includ-
ing an electronic voting system.
Whichever party comes first,
Mongolia’s parliament — known
as the Great Khural — will be
under intense pressure to ensure
the country’s wealth is equally
distributed.
“Economically, it (Mongolia)
is incredibly unequal,” said Kirk
Olson, an environmentalist who
has worked in Mongolia for 12
years.
“You have guys renting the
airport… but at the same time
you have six-year-old street kids.
You have all sectors of life.” — AFP
would wait for the troika’s report
on Greece before taking any deci-
sions on how to make adjustments
to the bailout package to compen-
sate for weeks of political paraly-
sis and a deeper-than-expected
recession.
Mr. Samaras, 61, emerged from
hospital on Monday with a ban-
dage over one eye. He was under
orders not to fly or make the long
road trip to Brussels, doctors said.
Speaking to Mega TV earlier,
government spokesman Simos
Kedikoglou said Mr. Rapanos
told Mr. Samaras on Friday, after
being offered the job, that he had
a “chronic situation” that he had
learned to live with and would be
able to do the job.
Mr. Kedikoglou later said the
government was not expected
to name a replacement for Mr.
Rapanos on Monday. A senior
official from one of the coalition
parties said a new finance minister
was likely to be announced on
Tuesday. The government said
heat-seeking guided laser missile,”
Turkey’s Vice Prime Minister Bu-
lent Arinc said.
The jet had been “intention-
ally shot down… in international
airspace,” he added.
“To target an aircraft in this
fashion without any warning is a
hostile act of the highest order,”
he said, adding that Ankara could
soon announce a cut in power
supplies to Syria.
Later Monday, Arinc accused
Syria of having opened fire on a
rescue plane searching for the jet’s
two pilots who are still missing.
“Everyone must know that
this sort of behavior will not go
unpunished,” he said.
“Colossal failure”
In New York, the US ambas-
sador to the United Nations gave
a withering assessment of UN ef-
forts to end the bloodshed inside
Syria.
“The situation in Syria repre-
sents a colossal failure by the Secu-
rity Council to protect civilians,”
Susan Rice said as the 15-nation
body debated the crisis.
“It is a shame that this Council
continues to stand by rather than
to stand up,” she added.
She called for tougher sanc-
tions against Syrian President
Bashar al-Assad, a position backed
by Britain.
Inside Syria, the killing con-
tinued.
The Syrian Observatory for
Human Rights said 95 people
imports as EU-wide ban bites
SEOUL — South Korea became
the first major Asian consumer of
Iranian crude to announce a halt
to imports after the government
said it would be suspended from
July 1 due to a European Union
ban on insuring tankers carrying
Iranian oil.
The insurance ban makes it al-
most impossible to ship Iranian oil
as most insurance is undertaken
by EU-based companies and the
move comes as part of a series of
measures designed to put pressure
on Iran to halt what the United
States and others say is a nuclear
weapons program.
South Korea depends on the
United States for security, but it
has no natural resources and has
been scrambling for alternative
crude supplies to replace those
from a country that supplied 9.4%
of its needs in 2011.
The world’s fourth largest
buyer of Iranian crude said it has
no plan to provide state guarantee
like Japan to continue its imports.
Another two major Asian buyers,
China and India, will allow Iran to
deliver the crude from July. “South
Korea’s imports of Iranian oil
Mr. Samaras and the leaders of his
two coalition allies — the Socialist
PASOK and smaller Democratic
Left — would take their case for
renegotiating the bailout condi-
tions to Europe and the United
States as soon as the prime min-
ister was well enough.
Greek tactics
At the two-day EU summit
starting on Thursday, Greece will
be represented by Foreign Minis-
ter Dimitris Avramopoulos and
outgoing Finance Minister George
Zanias in a delegation headed by
President Karolos Papoulias.
Messrs. Avramopoulos and
Zanias met on Monday to discuss
tactics, working from a govern-
ment program that calls for tax
cuts, extra help for the poor and
unemployed, a freeze on public
sector layoffs and two more years
to bring Greece’s deficit under
control.
Much of this program, an-
nounced by the coalition over
the weekend, would unravel basic
THE WORLD S1 / 9
including 61 civilians had died
across the nation Monday, as the
army pounded rebel strongholds
and other towns and cities.
According to the Observatory,
the conflict has cost more than
15,000 lives.
An AFP correspondent re-
ported fierce clashes in the Homs
province town of Qusayr between
troops and rebel fighters followed
by an army assault on the town
during in which helicopter gun-
ships were used.
And as pro-regime troops
bombarded the central city of
Homs, the rebel Free Syrian Army
warned of an impending “mas-
sacre.”
The opposition Syrian Nation-
al Council called for international
help “before it is too late.”
But the Red Cross said that
booby traps and the lack of a
clear agreement from troops and
rebels were blocking its efforts to
evacuate the sick and wounded
from Homs.
A Turkish diplomat told AFP
that one Syrian general, two colo-
nels and five other army officers
including two majors, accom-
panied by 24 family members,
had crossed into Turkey late on
Sunday.
That brought to 13 the num-
ber of generals seeking refuge
in the country since the revolt
against the government of Presi-
dent Bashar al-Assad erupted in
mid-March 2011. — AFP
will be suspended, as the EU will
suspend crude imports from Iran
and also halt its insurance and
reinsurance cover on the crude
imports from July 1,” a joint state-
ment from the economy, finance
and foreign affairs ministries said.
“The government will con-
tinue to make efforts to minimize
impacts on domestic industry and
the economy including oil supply,
and exports to Iran, although the
imports of Iranian oil are sus-
pended,” the statement said.
The official confirmation fol-
lows a Reuters story on May 21
that had cited sources as saying
South Korea would become the
first of Iran’s major Asian custom-
ers to halt oil purchases.
EU governments on Monday
approved an embargo on Iranian
oil to start on July 1 and warned
Iran that more pressure could be
put in place if it continued to defy
international demands for limits
on its nuclear program.
Around 90% of the world’s
tanker fleet is covered by Western-
based protection and indemnity
(P&I) clubs, which insure against
personal injury. — Reuters
elements of a bailout agreement
reached with lenders as recently
as March. “We have facts and data
to show the medicine is not work-
ing,” a government official, who
declined to be named, said after
the Avramopoulos-Zanias meet-
ing. “The recession is very deep
and unemployment [at almost
23%] is very high.”
He warned of “long and
tough” negotiations. “Our pri-
mary aim will be to reinvigorate
the economy and provide relief
to the sectors of society that are
hurting the most.”
The coalition of Mr. Samaras’s
conservative New Democracy,
PASOK and the small Democratic
Left party faces an emboldened
opposition committed to tearing
up the terms of the bailout if it
ever gets into power.
Critics and much of the popu-
lation argue that the terms are
only driving Greece ever deeper
into recession and fraying the
edges of society. But Germany is
unsympathetic, frustrated by the
slow pace of reform in Greece. —
Reuters
 10 / S1 THE NATION WEDNESDAY, JUNE 27, 2012

Government backtracks on ‘Hong Kong ship-ram’ charge

THE PHILIPPINES backed away
yesterday from allegations a
Hong Kong vessel may have
rammed a Filipino fishing boat
in stormy waters of the South
China Sea, leaving one man dead
and four missing.
The authorities have not iden-
tified the mystery vessel behind
the June 20 incident west of Luzon
island, Philippine Navy chief Vice-
Admiral Alexander P. Pama said.
The Philippine Coast Guard
on Monday named Hong Kong-
flagged Peach Mountain a suspect,
but Pama said the authorities
had since reviewed its track and
concluded the vessel was nowhere
Legal steps being prepared to seek redress for victims
near the supposed collision site.
“If we are just going to com-
pute on the basis of the speed of
the ship at 9 in the morning, she
cannot be in that particular (area)
which is 130 nautical miles[222
kilometers] away,” Mr. Pama said
of the bulk carrier.
Defense Secretary Voltaire T.
Gazmin also said the coast guard’s
initial description of the incident
as an accidental collision was
incorrect.
Four of the eight crew mem-
bers were rescued three days
after the incident, but one later
died. Four other crew members
remain missing.
Mr. Gazmin said the surviv-
ing crew noticed the markings
“Hong Kong” as well as Chinese
characters at the mystery ship’s
stern, which he said was how the
Peach Mountain had come under
suspicion.
About 90 cargo vessels had
passed the busy sea lane in the
general area of the accident over
a 24-hour period, and the Phil-
ippine authorities are trying to
narrow the vessels most probably
involved down to about 20.
The incident has threatened to
complicate the dispute between
China and the Philippines over
the disputed Scarborough Shoal in
the South China Sea, which both
countries claim.
Legal remedy
Meanwhile, the Palace has
ordered legal experts to map out
the next steps to seek redress for
the victims, a Malacañang official
said yesterday.
“We are asking our legal ex-
perts on that first so I cannot give
you any further information. But
certainly we are looking into the
effect,” Presidential Spokesman
Edwin Lacierda said when asked
how the government is seeking
justice for the fishermen.
“We will have a contact person
of that registered vessel assuming
we are able to identify the proper
vessel that hit the fishermen. So
we’re now asking our legal experts
as to the process,” he added.
Mr. Lacierda said the Navy
confirmed that another Hong
Kong-registered vessel and not
Peach Mountain was involved in
the incident.
“It is not Peach Mountain
that rammed the vessel that hit
those fishermen. However, it is
another Hong Kong-registered
vessel and we’re still looking at
it and there’s a continuing in-
vestigation as to what particular
vessel hit the fishermen,” he said
in a briefing at the Palace.
Monetary assistance has been
extended to the families of the
fishermen and rescue operations
are ongoing, said the govern-
ment.
In a related development, the
Department of Foreign Affairs
yesterday confirmed that Chinese
ships have withdrawn from nearby
Scarborough Shoal or Bajo de
Masinloc.
“It has been confirmed by
the Philippine Navy that, as of
two days ago, there were no more
ships inside the lagoon. The Chi-
nese fishing boats have obviously
returned,” it said in a statement.
— AFP and N. M. Gonzales

Probe sought on port calls
of nuke-powered submarines
A PARTY-LIST group will seek
a congressional probe on the
frequent port calls of US nuclear
submarines and warships in
Subic Bay in relation to the
constitutional ban on the entry
of nuclear weapons into the
country.
Gabriela Women Rep. Luzvi-
minda C. Ilagan said in a state-
ment yesterday that she will file
a resolution that will seek to
conduct an investigation on the
contract entered into by US war-
ship builder and developer AM-
SEC Huntington Ingalls Industries
(AMSEC-HII) with Subic-based
shipyard company Hanjin Heavy
Industries Corp.-Philippines.
“Our Constitution explicitly
bans nuclear weapons. The port
calls of these US nuclear subma-
rines being done supposedly for
maintenance and repairs in Subic
Bay is a direct breach of the Con-
stitution,” she said.
“If AMSEC-HII’s contract
with Hanjin Heavy Industries
allows this direct attack on our
Constitution and our nation’s
sovereignty, then it should im-
mediately be canceled,” she added.
The lawmaker said it is also
important that Congress look into
the process that transpired which
led to AMSEC-HII’s partnership
with Hanjin Heavy Industries.
“We have strong reason to
suspect that this partnership is
being used by the US govern-
ment to effectively circum-
vent the Constitutional ban on
nuclear weapons and reactivate
its bases in the Philippines,” said
Ms. Ilagan.
The statement then cited Ar-
ticle II Section 8, of the Constitu-
tion which states that the Philip-
pines, consistent with the national
interest, adopts and pursues a
policy of freedom from nuclear
weapons in its territory.
Ms. Ilagan further said that
the frequency of the visits and
port calls of US warships and
submarines in the Philippines
supposedly under the ambit of
the Visiting Forces Agreement and
the Mutual Defense Treaty have
remained unchecked.
Senators, congressman, priest join Local firm
list of aspirants for chief justice distributor of
THREE LAWMAKERS and a
priest have been added to the
list of nominees to replace
former chief justice Renato C.
Corona.
According to the list of rec-
ommendees submmitted to the
Judicial and Bar Council (JBC)
as of 1:16 p.m. yesterday, con-
stitutional expert Fr. Joaquin G.
Bernas, Cagayan de Oro Rep.
Rufus B. Rodriguez (2nd district),
and Senators Franklin M. Drilon
and Miriam Defensor-Santiago
were nominated to the post that
was vacated on May 29.
Their inclusion in the list
brings to 37 the number of aspir-
ants who have yet to formally
accept their nominations.
Meanwhile, the number of
those who have submitted their
confirmations to the JBC did not
change since last week; it still
remains at 13.
Those who declined, on the
other hand, have reached 13,
including Supreme Court As-
sociate Justices Estela P. Bernabe,
Mariano del Castillo and Bienve-
nido L. Reyes.
The JBC, the body tasked
to screen aspirants to ranking
posts in the Judiciary, will accept
nominations and applications
until July 2.
It targets to submit to Presi-
dent Benigno S. C. Aquino III the
short list of candidates. The Presi-
dent has until Aug. 27 to appoint
a new chief justice.
Mr. Corona was ousted after
the Senate Impeachment Court
found him guilty of betraying
public trust for failing to fully
disclose assets in his Statement of
Assets, Liabilities and Net worth,
Meanwhile, two business
groups yesterday called for the
appointment of a new justice who
will be able to withstand public
scrutiny in terms of qualifications
for the office and in efforts to re-
form the Judiciary.
“We join others in agreeing
that honesty, probity, integrity are
essential characteristics our Chief
Justice must exhibit. There can be
no compromise on this,” said the
Financial Executive Institute of
the Philippines and Management
Association of the Philippine in a
joint statement.
“… (T)he Chief Justice should
be someone with vision and
strong leadership and administra-
tive skills to carry out the much
needed structural reforms in the
Judiciary so we can achieve a truly
fair, impartial court system that
can act with dispatch on cases
brought before it.”
The group also cited the need
for independence in balancing
the powers of the Executive and
Legislature.
“The Judiciary is one of three
independent and separate branch-
es of government. Its head, the
chief justice, must be equally
independent,” the statement read.
The chief justice should have
“a strong and unquestioned repu-
tation based on extensive experi-
ence in law, and a high sense of
justice in its application,” said the
groups.
Turkish arms
DAVAO CITY — A company
based in the city has been ap-
pointed as Philippine distributor
of two firearm manufacturers in
Turkey.
Carlos Omar A. Vargas, presi-
dent of Tactix Trading Corp.,
said his company now represents
Safir Arms Group, maker of as-
sault rifles and shotguns, and the
Tisas Trabazon Industry Corp.,
manufacturer of pistols and am-
munition.
Mr. Vargas sees strong demand
for pistols especially for the police
force. “We hope to supply at least
10% of this shortage in the next
three years to help augment the
needs of the PNP (Philippine
National Police) and other law
enforcement agencies in the Phil-
ippines,” he said.
Early this year, Cagayan de Oro
Rep. Rufus B. Rodriguez and his
brother, Maximo, representative
of party-list Abante Mindanao,
called for an investigation on the
lack of guns for the police. — CQF

Five bills initially identified as priority

THE HOUSE of Representatives has initially
identified five priority bills when the third
regular session of the 15th Congress opens
next month, a lawmaker said yesterday.
Lined up for discussion at various stages
are the Freedom of Information Bill, the Re-
productive Health Bill, the K to 12 substitute
bill, the measure amending the Electric Power
Industry Reform Act (EPIRA), as well as the
proposed budget for 2013, Aurora Rep. Juan
Edgardo M. Angara said in an interview.
“It’s my view of what would be the pri-
orities since they are carried over from 2010
and were already prioritized,” he said in a
separate text message.
House Bills (HB) 11, 22, 53, 59 and 86,
all pushing for freedom of information, are
pending in the committee level.
The HB 4244, also known as the Reproduc-
tive Health Bill, is being debated in plenary.
Meanwhile, the consolidated K to 12 is still
crafted by a technical working group, although
the program has been started by the Depart-
ment of Education in public schools this year.
HB 1428, which aims to amend the EPIRA
law, has been pending with the committee of
energy since August last year.
Speaker Feliciano R. Belmonte, Jr. and
Majority Leader Neptali M. Gonzales II could
not be reached for comments.

Online school sets expansion

for English language course
CEBU CITY — Taking advantage of the large
number of non-English speaking Asians
who want to learn the language, a Japanese-
owned online school based here has invested
$4 million to open a bigger facility that will
accommodate more students.
QQ (Quick and Quality) English Tutorial
School has inaugurated its new learning school
which now occupies three floors of the Skyrise
4 building in the Cebu IT Park.
Raiko Fujioka, president and chief execu-
tive officer of QQ, said Filipinos are the best
non-native speakers of English in Asia and
other Asian people like the Japanese and Ko-
reans would like to learn from them.
“The Philippines speaks very clean English
unlike the ordinary American who uses a lot of
slang. Japanese students feel comfortable with
our Filipino teachers because they also studied
the language and know how hard it is,” he said.
QQ employs all Filipino teachers and its
new facility has 120 classrooms for offline
students, which currently number around 30.
Mr. Fujioka said majority of their students,
which number about 3,000, are being taught
online by Filipino teachers through Skype
interactions.
With the expansion, Mr. Fujioka said they
can now accommodate a maximum of 200
offline students.
QQ started operations in 2009 occupying
only 700 square meters of space in another
building.
Mr. Fujioka added that 90 of their students
are Japanese but they’re hoping to attract
more from countries like Korea, China and
the Middle East.
QQ also plans to partner with the De-
partment of Tourism (DoT) through a
program that seeks to bring international
students to Cebu destinations where they
can have the chance to practice their English
skills outside of the classrooms. — Marlen
D. Limpag

In print and online

Tel : +632 535 9901
Fax : +632 535 9940
E-mail : editor@bworld.com.ph
Web site : www.bworldonline.com
WEDNESDAY, JUNE 27, 2012 THE NATION S1 / 11

High-level Islamic body delegation to grace Moro summit

KORONADAL — Efforts to
achieve a political settlement
in the Mindanao conflict will
gain international recognition
next month with the expected
attendance of officials from the
Organization of Islamic Coop-
eration (OIC) in a summit of
Moro leaders, a rebel official said
yesterday.
Ghazali Jaafar, MILF (Moro
Islamic Liberation Front) vice-
chairman for political affairs, said
OIC Secretary-General Ekmeled-
din Ehsanoglu has been asked to
attend the four-day Bangsamoro
Leaders’ Summit next week at
Camp Darapanan, the rebel head-
quarters in Sultan Kudarat town in
Maguindanao province.
“The main objective of the
summit is to listen to the views of
Bangsamoro leaders in achieving a
negotiated political solution to the
Mindanao problem,” Mr. Jaafar
told a local radio station.
Mr. Ehsanoglu is expected to
be accompanied by Sayed Kassem
El-Masry, OIC special envoy for
peace in southern Philippines, Mr.
Jaafar said, adding that Malaysian
facilitator Dato’ Tengku Ab’ Gha-
far bin Tengku Mohamed has
also been invited. Malaysia is the
mediator in the peace talks.
The event on July 6 to 9 will
have as theme “Strengthening
Bangsamoro Unity and Solidar-
ity.”
The government and the MILF
peace panels agreed in March to
have the OIC sit as an observer in
the peace process.
Mr. Jaafar said also invited in
the event are government peace
panel head Mario Victor F. Leonen
and Presidential Peace Process
Adviser Teresita Q. Deles.
The Moro National Liberation
Front (MNLF), which forged a
final peace deal with the gov-
ernment in 1996, will also be
represented by Muslimin Sema,
vice-mayor of Cotabato City, Mr.
Jaafar said.
Tribal support sought on peace process
The MNLF was the main rebel
KORONADAL — Tribal sup- Mohagher Iqbal, MILF peace indigenous people rights and
group in the 1970s until Salamat
port has been sought on the panel chairman, and Jun Man- interests.
Hashim and some leaders who
peace process, particularly tawil, head of the peace panel Mr. Iqbal has encouraged
opposed the peace deal broke
on ancestral domain, during secretariat, represented the MILF the tribal leaders to intervene
away to form what is now known
consultations at the weekend side, while around 30 leaders should the ceasefire agreement
as the MILF.
between the leadership of the from different tribal groups from fail, by asking the government
Cotabato Archbishop Orlando
Moro Islamic Liberation Front Maguindanao and Sultan Kudarat and the MILF to continue the
B. Quevedo will deliver a message
(MILF) and representatives of attended the discussions. negotiations until a deal is
during the summit, Mr. Jaafar
indigenous tribes in Cotabato The tribal leaders raised the signed.
said.
City. issue of tribal land ownership “Continue organizing your-
Peace negotiations between
The gathering tackled three under the proposed Bangsamoro selves and assert your rights
the government and the Moro
pointed that were listed in the political entity, and the alleged through democratic means,” Mr.
rebels are now in the end stages
MILF Web site, www.luwaran. occupation by “outsiders” in land Iqbal was quoted as telling the
and significant strides have been
com, namely: adjacent to paved highways con- tribal leaders.
achieved, including the forging of
• expression of support by necting Cotabato City and Lebak He also invited the tribal
the Decision Points on Principle.
indigenous communities in town in Sultan Kudarat. leaders to take part in the forth-
The document, signed dur-
the ongoing government-MILF Mr. Mantawil has assured that coming assembly of Bangsam-
ing the 27th exploratory talks in
peace negotiations; land confiscation will not happen oro leaders on July 6-9 to be
Malaysia in April, shall serve as
• updates on the negotia- under the proposed setup. held at the MILF headquarters
the framework in the discussion
tion; and The meeting, the MILF state- in Camp Darapanan in Sultan
and formulation of the compre-
• discussions on important ment noted, was an expression Kudarat, Maguindanao. — L.
hensive peace compact. — Romer
issues linked to the talks. of the rebel group’s support for O. Pacardo
S. Sarmiento

Over 3M Pinoy children in risky work conditions Quezon City to ban political
OVER THREE million Filipino
children worked in risky condi-
tions last year, latest government
data show, a situation traced by
experts to poverty and lack of job
opportunities among parents.
In a forum yesterday, Car-
melita N. Ericta, administrator
of the National Statistics Office,
said the 2011 Survey on Children
(SoC) showed that the number
of children from ages five to 17,
who were “employed in hazardous
industries or worked longer than
the hours allowed” by law, has
reached 3.028 million or 7% of
the total population of 29 million
Filipino children.
There were more child labor-
ers (55.1%) than child workers
(44.9% or 2.46 million), for a
total working population of 5.49
million children.
Child workers are defined by
law as those between ages five
and 17 that do “permissible work”
under the responsibility of parents
or legal guardian and where only
family members are employed.
Republic Act (RA) No. 9231 or
the Special Protection of Children
against Child Abuse, Exploitation
and Discrimination Act of 2003,
also allowed work, with certain
conditions, “where a child’s em-
ployment or participation in pub-
lic entertainment or information
through cinema, theater, radio,
television or other forms of media
is essential….”
The law, however, prohibits
children from working in indus-
tries and workplaces that pose
risks to their health and well-
being.
Meanwhile, almost all child
laborers, or 2.99 million, were
involved in hazardous working
conditions, such as exposure to
chemical, physical and biological
risks, while the rest worked for
long hours, said Ms. Ericta. The
data also showed boys dominated
the child labor population, or
66.8%, while nearly 69.5% of the
total, or 2.106 million children,
attended school.
The SoC, which is conducted
by the National Statistics Office as
commissioned by the Internation-
al Labor Organization (ILO) and
the US Department of Labor, was
last conducted in 2001 and 1995.
Ms. Ericta, however, said that
the surveys are “not comparable,”
noting the “revisions and im-
provements in capturing child
labor data.”
The latest SoC used methods
under RA 9231, and international
statistical standards adopted in
2008, the ILO said in a statement
yesterday.
Despite the enactment and
implementation of laws protect-
ing child rights, experts said eco-
nomic growth has failed to have
an impact on the poor, forcing
families to resort to child labor to
make ends meet.
In the same forum, Lawrence
Jeff Johnson, country director of
ILO-Philippines, noted that “the
root of child labor is linked with
poverty and lack of decent and
productive work for parents.”
“Addressing child labor is
really about inclusive growth. A
fast economic growth that does
not translate in jobs and poverty
eradication is nothing,” he added.
Ms. Ericta agreed, noting that
survey results show “most” of the
child laborers assist in family-
run farms, augment the family
income, pay for their schooling,
and even to help pay family debts.
“While we strive to keep
children in school and away from
child labor, we need to ensure
decent and productive work for
parents and basic social protec-
CHILD LABOR in a quarry site
tion for families,” Mr. Johnson
said.
The country, through the
Philippine Program Against Child
Labor, has committed to substan-
tially reduce child labor by three-
fourths in 2016.
For her part, Labor Secretary
Rosalinda D. Baldoz said the gov-
ernment is addressing child labor
through “convergence programs”
that provide services to child la-
borers and their families.
“Government agencies have
gone together to give livelihood
credits in project markers
NAMES AND faces of politi-
cians plastered on markers on
city-funded projects will be
banned in Quezon City under
a new ordinance that will take
effect in August.
Ordinance No. SP-2146,
S-2012, which set standards and
regulations on physical infrastruc-
ture projects funded by the local
government, was signed by Mayor
Herbert Constantine M. Bautista
on June 1. It will take affect after
60 days.
The city council passed the or-
dinance on third and final reading
on May 14.
The law limits the attribution
of markers only to the office of
the public servant who initiated
the project.
“… (A)s a matter of policy and
uniformity, the project may bear
the following phrase: ‘A project of
the Quezon City citizens in coop-
eration with (name of the office
or department [of] elected official
who is responsible for making this
[project] successful),’” section 7 of
the ordinance read.
Also under the ordinance au-
thored by then Councilor Edcel
bw file photo B. Lagman, Jr., all infrastructure
projects by the city government
assistance to parents, provide have to pass a set of uniform
alternative learning modes for design and construction specifi-
children and remove children
from abject work conditions,” she
said at the forum.
Ms. Baldoz also said the in-
teragency National Child Labor
Committee is formulating an ac-
tion plan for July 2012-June 2016,
without elaborating.
“We have just upped the ante
in our fight against child labor
and we are prepared for it,” she
added. — Antonio Sigfried O.
Alegado
cations to be created by the city’s
engineering department. Projects
include roads, bridges, public
buildings and waiting sheds, read
section 4 of the ordinance.
“… [S]trict adherence to uni-
form standards with respect to the
design and material composition
of public buildings and infra-
structure could minimize the use
of scarce resources, help improve
the visual aesthetics of our built
environment as well as guaran-
tee the safety of individuals who
shall use public structures,” the
ordinance read.
The remaining term of Mr.
Lagman, who resigned as coun-
cilor on March 23, is being served
by his wife, Ivy Lim-Lagman, until
next year’s midterm elections.
The ordinance reflects a pro-
posal filed by Senator Miriam
Defensor-Santiago.
Senate Bill No. 1967, which is
pending at the committee on civil
service and government reorga-
nization, seeks to prohibit public
officers from claiming credit
through signage announcing a
public works project.
The proposal has obtained
the support of Malacañang, with
President Benigno S. C. Aquino
III expressing preference for the
policy. — MJOC

Court defers issuance Russian nabbed in card fraud

BACOLOD CITY — A Russian More fake credit cards, includ-

of verdict in tax case national is facing charges of

A VERDICT on a tax evasion case
has been postponed for Monday
tional Internal Revenue Code last
February. The accused claimed
credit card fraud after he used
counterfeit cards to purchase
expensive cellphones, said the
Bacolod City Police Office yes-
ing five Citi Visa cards, were found
in the suspect’s possession after
his arrest. Police also confiscated
a fake driver’s license and several
identification cards believed to be

after the accused failed to appear
in a tax court yesterday.
Gloria V. Kintanar, a distribu-
tor of Forever Living Products,
Inc., a multi-level marketing
company, failed to show up at the
Court of Tax Appeals (CTA) after
her lawyer presented a medical
certificate which stated that the
accused was suffering from hyper-
tension, “with severe dizziness and
headaches.”
The court, however, gave a
non-extendable deadline for her
appearance, otherwise a warrant
of arrest will be issued if she fails
to appear on July 2.
The case was filed by the Bu-
reau of Internal Revenue (BIR) in
2005 against Ms. Kintanar after
the issuance of several notices
from 2003 to 2005 for failure to
file income tax returns. She was
charged with violating the Na-
that she ordered the company’s
accountants to work on her tax
returns to show she had no intent
to commit the crime.
According to the BIR, the
agency assessed Ms. Kintanar with
a tax deficiency of P6.3 million.
On the other hand, the CTA
has denied last month the peti-
tion for review of Benjamin G.
Kintanar, Ms. Kintanar’s husband
who has been charged separately,
due to lack of merit. All nine jus-
tices upheld the third division’s
ruling that he was guilty beyond
reasonable doubt, according to an
earlier statement by the BIR.
Also a distributor of Forever
Living, he has been fined P20,000
and was assessed income tax de-
ficiencies worth P8.25 millon and
P10.73 million plus interest and
surcharges for the taxable years
2000 and 2001.
terday.
Detained Oqil Oqilov, 24, is
facing charges of violating Re-
public Act No. 8484 or the Access
Devices Regulation Act before the
City Prosecutor’s Office.
Senior Supt. Ricardo de la Paz,
city police director, said they are
looking into the possibility that
the Russian national is a member
of a fake credit card syndicate
operating in the country.
“There might be other busi-
ness establishments that were
victimized by the suspect,” he said.
Mr. de la Paz said the suspect
used a fake Banco de Oro card
when he purchased two mobile
phones worth P29,990 each from
Po’s Digital along Araneta St. on
Thursday. He was arrested on Sat-
urday afternoon when he returned
to purchase another cellphone us-
ing a fake Metrobank card.
for update
counterfeit as well.
Aside from Po’s Digital, two
other complainants in Bacolod
have positively identified Oqilov
for also using fake credit cards in
their stores.
Mr. de la Paz said the suspect
admitted he was aware that he uses
fake credit cards.
“There’s deceit and fraud,” the
police chief said.
The suspect told the police the
fake credit cards were sold to him
by his two Filipino friends from
Antipolo City, in Rizal province.
He said he was in Bacolod to visit
his girlfriend, who is a resident of
Barangay Mandalagan.
A check with the Immigra-
tion field office here showed that
Oqilov has no arrival records,
local alien control officer Mita
Chuvy Arguelles said. — Nanette
L. Guadalquiver
 S2 Banking & Finance
/1-8
BUSINESSWORLD NEWS UPDATED DAILY
www.bworldonline.com SECTION 2 : n STOCK MARKET n WORLD SPORTS n BULLETINS n ARTS & LEISURE

WEDNESDAY, JUNE 27, 2012 VOL. XXV, ISSUE 239 ISSN 0116-3930 S2/ 1

SE Asian banks well-positioned — Moody’s

BANKS in Southeast Asia have
improved credit fundamentals,
making them better-placed than
Western peers to grow amid
currently challenging global
economic conditions, Moody’s
Investors Service said in a state-
ment from Singapore yesterday.
“The ratings gap that had long
separated banks in Asia from their
Western peers has now essentially
been closed because the stable
credit quality of Asian banks
throughout the global financial
crisis has resulted in a com-
parative improvement in their
ratings,” the statement quoted
Jean-Francois Tremblay, Moody’s
associate managing director, as
saying during the credit rater’s an-
nual Asian Banking & Soveriegn
Conference in Singapore.
“In contrast to Western banks
that have experienced significant
credit quality challenges since
the outset of the global financial
crisis, Asian banks are only mod-
erately leveraged, largely deposit-
funded and generally conservative
in their lending,” he noted.
This, in turn, enabled South-
east Asian banks to take advantage
of opportunities created by with-
drawal from Asia of European
and other foreign banks, Mr.
Tremblay noted further.
“Rapid growth in both size
and geographic scope has con-
tributed to improve asset quality
and profitability metrics…it has
also made Southeast Asia’s banks
take on sizeable new risks,” Mr.
Tremblay said.
“Given the evolving credit
profile of Asian banks, it is im-
portant to continuously update
stress tests to reflect these changes
and assess their resilience in an
economic downturn,” he added,
reiterating the view that “the
biggest risk to the banks is the
contagion from the euro area
through trade channels.”
Moody’s said it has a stable out-
look on large banks in Singapore,
Indonesia, Malaysia, Thailand,
the Philippines and Sri Lanka,
but a negative outlook on those
in Vietnam and India. A stable
outlook means banks in countries
concerned have “sufficient buffers”
in case of “a worse-than-expected
economic scenario”.
The statement said Moody’s
“central scenario” is that South-
east Asian banks will continue
to grow, “albeit at a slower pace”,
despite the currently challenging
external economic environment.
Speaking in the same event,
Tom Byrne, senior vice-president
Peso recovers
and regional head of Moody’s
Sovereign Risk Group, said
growth of Asia-Pacific econo-
on positive US
mies is expected to remain robust
despite downward revisions in economic data
projections for many of them.
“And unlike governments in THE PESO strengthened against the
Europe whose credit profiles dollar yesterday as signs of recover-
have deteriorated, the capacity of ing demand in the US, as borne by
Asian governments to stimulate housing sales data, lifted sentiment
the economy or provide support that was otherwise still weighed
to banks in times of stress has down by doubts over the European
remained intact or has even im- Union (EU) summit later this week.
proved in some cases,” he noted. Peso, S2 / 3

Sun Business and ACE

Insurance partner to
create mobile phone
insurance program
After bringing Sun Cellular’s best-value
mobile services, Sun Business takes a
bigger leap by partnering with Insurance
Company of North America (ACE Insur-
ance) to create a mobile phone insur-
ance program.
The “Sun Mobile Shield” is a value-add-
ed feature to mobile subscriptions of Sun
Business clients that protects their Sun
Cellular-powered mobile phones and cov-
ers the cost of unit replacement, in cases
of untoward incidents like theft.
In addition, Sun Business clients may
choose to upgrade the standard coverage
to include instances of accidental dam-
ages on these mobile phones.
Enhancing its ability to deliver value-
added services through its partnership
with ACE Insurance, a trusted and leading
insurance provider for device protection
benefits, the Sun Mobile Shield Program
has been designed to complete the cus-
tomer experience and augment connectiv-
ity offerings of Sun Business.
“Because we truly value our relationship
with our customers, we offer the Sun Mo-
bile Shield service to give them the addi-
tional benefit of having their mobile assets
secured and protected, especially through
the risks and uncertainties that they face
in their operations,” says Michele Curran,
Vice President for Sun Business.
To know more about the Sun Mobile
Shield Program and the best-value mobile
plan packages of Sun Business, visit HY-
PERLINK “http://www.sunbusiness.comp.
ph” www.sunbusiness.comp.ph, call the
24/7 Sun Business hotline at (02) 395-
8PRO (8776) or visit the nearest branch of
The Sun Shop.
Sun Business is the corporate solutions
arm of Sun Cellular, a member of the PLDT
Group.

Sun guarantees 24/7

support for roaming
subscribers
Telecommunications network Sun Cellular
intensifies its customer service efforts by
providing guaranteed 24/7 support for its
roaming subscribers.
“As Sun Cellular’s subscriber base
continues to branch-off to different ar-
eas around the world, we recognize the
customer’s need to maintain reliable and
comprehensive communication with us,
especially with a service as dynamic and
as flexible as Sun Cellular Roaming,” says
Reuben S.J. Pangan, Vice President for
Customer Relationship Management of
Sun Cellular.
The company has recently opened its
TXTHotline1200, where subscribers can
address their roaming concerns simply
by texting these to 1200. Subscribers
may also use TXTHotline1200 to report
network issues, apply for postpaid lines,
and send their inquiries, among others.
Interested users need only to register by
keying in REG <space> Last Name, First
Name and sending to 1200.
Sun Cellular is also taking advantage of
the immense popularity of social network-
ing sites by establishing its own official
Facebook (facebook.com/suncellularph)
and Twitter (twitter.com/suncelltweets)
accounts. “We would like to give ‘neti-
zens’ a channel that they can use to reach
us while online. We realize that social
networking sites have already become
an integral part of our customers’ lives,”
Pangan adds.
Users may also receive immediate
feedback through Sun Cellular’s own chat
channel by logging on to suncswebchat2.
sun.net.ph, or by sending an e-mail di-
rectly to suncellular@digitel.ph.
Sun Cellular is a member of the PLDT
Group.
ADVT
 2 / S2 the stock market WEDNESDAY, JUNE 27, 2012

1340
PHILIPPINE INDEX CHARTS
Financial: 1,282.88 All Shares: 3,411.45

3510 5400
TUESDAY, JUNE 26, 2012

PSEi: 5,193.84 Indices mixed as bourse continues climb

1260 3410 5180 STOCKS yesterday continued to Blue-chip Dow Jones industrial Though not completely immune This, she noted, is why sectoral
1180 3310 4960
climb towards the 5,200 mark, average shed 1.10% or 138.12 points to the contagion risk from Europe, indices ended mixed yesterday.
3210 4740
ignoring a drop in Wall Street and to 12,502.66. The Standard & Poor’s investors have found sufficient rea- Services surged 1.49% or 25.73
1100
doubts a European summit later 500 index slid 1.60% or 21.30 points son to keep optimism afloat,” Mr. points to 1,754.24, followed by
1020 3110 4520
this week would show the way out to 1,313.72, while tech-heavy Nas- Calaycay said. holding firms which added 0.38%
3.18 9.85 26.64
940 3010 4300 of the region’s crisis. daq composite index went down “The approaching end of the or 16.88 points to 4,427.07, and
J F M A M J J F M A M J J F M A M J Unlike Monday, however, the 1.95% or 56.26 points to 2,836.16. second quarter raises anticipation the industrial index which gained
six sectoral indices were equally “Cautious trading remains the on window dressing, boosting 0.22% or 17.37 points to 7,772.30.
Industrial: 7,772.30 Property: 1,885.53 Mining & Oil: 24,535.83
divided between gainers and losers. principal stance, with markets look- near-term trades. The overriding Ending in the red were mining
8040 2010 27420 The Philippine Stock Exchange ing ahead to a summit of European optimism is based on a promising and oil which dropped 0.32% or
7830 1900 26320
index (PSEi) rose 0.52% or 26.64 leaders. Markets are waiting for prognosis for the economy based 79.77 points to 24,535.83, financials
7620
points to settle at 5,193.84, while more substantive results other than on the stronger-than-expected first- which fell 0.25% or 3.18 points to
1790 25220
the broader all-share index added the oft-heard communiques vowing quarter results,” he added. 1,282.88 and property which shed
7410 1680 24120
0.29% or 9.85 points to 3,411.45. necessary assistance to troubled Freya B. Natividad, analyst of 0.16% or 2.98 points to 1,885.53.
7200
1570
23020 “In yet another display of resil- members,” Mr. Calaycay said. online brokerage 2TradeAsia.com, Decliners outnumbered ad-
17.37 2.98 79.77
6990
1460
21920 ience, investors largely ignored the European leaders will converge said the fact that businesses “usu- vancers 80 to 76, while 42 were
J F M A M J J F M A M J J F M A M J slump in US equities overnight and on Brussels on Thursday and Fri- ally” window-dress financial data unchanged.
a similar drop among its peers in the day to craft a clearer path towards “to end the quarter with positive Analyst Elizabeth S. Abadillo
PSE Turnover and Averages region,” Justino B. Calaycay, analyst greater economic union. results” should provide more lift to of brokerage Angping & Associates
SHARES VALUE (P) AVERAGES of brokerage Accord Capital Equi- “Moody’s latest downgrades of market sentiment. Securities, Inc., cited a number of
FINANCIAL 8,164,734 549,863,039.80 FINANCIAL 1,282.88 down 3.18 ties Corp., said in a market report 28 Spanish banks added to risks and “Also, there is obviously a profit blue chips that moved the market,
INDUSTRIAL 77,769,876 873,194,583.99 INDUSTRIAL 7,772.30 up 17.37
HOLDINGS 69,058,738 1,223,991,664.79 HOLDINGS 4,427.07 up 16.88 yesterday. “Europe continues to be thus negative sentiment,” he said.” taking in the market as investors try including Globe Telecom, Inc.
PROPERTY 111,315,277 407,411,373.48 PROPERTY 1,885.53 down 2.98 the main culprit for market declines At home, analysts said optimism to reposition their portfolio to sec- which surged 3.24% or P35 to
SERVICE 103,055,228 1,245,806,924.74 SERVICE 1,754.24 up 25.73
MINING & OIL 1,073,737,703 517,968,291.42 MINING & OIL 24,535.83 down 79.77 across the globe. It is no different continues to propel the market to tors that might boost the economy,” P1,115 apiece; DMCI Holdings,
GRAND TOTAL 1,443,101,556 4,818,235,878.22 ALL SHARES 3,411.45 up 9.85 today as Asian markets, which post slight gains. Ms. Natividad said. Inc., 2.9% or P1.6 to P56.70; and

Advances 76 Declines 80 Unchanged 42 PSEi 5,193.84 up 26.64
though generally in the red, see “The performance of the local “There is still confidence in the Semirara Mining Corp., 2.33% or
OPEN HIGH LOW some managing to buck the trend.” market, however, is a unique story. local market.” P5 to P220 apiece. — CHCV

Financial 1,284.49 1,288.24 1,277.30
Industrial 7,756.49 7,791.89 7,751.93 ODD LOTS VOLUME : 759,056
Holding Firms 4,411.39 4,442.40 4,388.22 ODD LOTS VALUE : 329,335.72
Property
Services
Mining & Oil
1,877.20 1,905.32 1,873.91
1,737.83 1,757.67 1,737.83
24,615.60 24,884.27 24,535.83 TOTAL FOREIGN BUYING : 2,882,637,972.29
PHILIPPINE STOCK EXCHANGE TUESDAY, JUNE 26, 2012
Provided by: Technistock

All Shares 3,401.94 3,417.76 3,399.31 TOTAL FOREIGN SELLING: 2,297,472,677.91 52 Wk 52 Wk MkCap Stock Stocks Volume Open High Low Close Prev Net Foreign 52Wk 52Wk MktCap Stock Stocks Volume Open High Low Close Prev Net Foreign
PSEi 5,167.85 5,201.20 5,163.75 High Low (Pmil)
Code Close Trade(peso) High Low (Pmil)
Code Close Trade(peso)
Buy(sell) Buy(sell)
Top 10 in Volume Top 10 in Value
Stocks Volume Stocks Value
Banks
The Philodrill Corp. 670,100,000 Phil. Long Dis. Tel. Co. 896,951,000 68.4 41.72 226,669 BDO Banco de Oro Unibank, Inc. 759,590 63 63.4 62.9 63.3 63 14,354,324 0.58 0.06 1,145 WIN Wellex Industries, Inc. 1,060,000 0.34 0.35 0.34 0.35 0.35 -
Oriental Pet. and Min. Corp. “A” 240,700,000 Alliance Global Group, Inc. 393,022,000 76.15 51 260,859 BPI Bank of the Phil. Islands 1,427,510 73.4 73.65 72 73.35 73.4 35,201,753 1.26 0.185 1,394 ZHI Zeus Hldgs., Inc. 304,000 0.52 0.52 0.51 0.51 0.53 -
IP E-Game Ventures, Inc. 70,000,000 Bloomberry Resorts Corp. 250,056,000 518.18 340.91 64,115 CHIB China Banking Corp. 1,130 490 495 490 494 495 (495,000)
Megaworld Corp. 58,631,000 Ayala Corp. 250,012,000 31 27 2,256 CSB Citystate Savings Bank 0 31 31 31 31 31 - Property
Manila Mining Corp. “A” 53,100,000 MetroBank and Trust Co. 234,357,000 19.78 18.52 21,372 EW East West Banking Corp. 1,125,300 18.96 18.96 18.92 18.94 18.96 (14,356,942) 2.97 1.74 3,159 BRN A Brown Co., Inc. 428,000 2.61 2.8 2.61 2.78 2.6 -
Alliance Global Group, Inc. 32,860,900 SM Investments Corp. 176,984,000 92.95 60.1 190,130 MBT MetroBank and Trust Co. 2,599,580 90 90.7 89.9 90.05 90.15 53,585,233 0.206 0.15 947 ALCO Arthaland Corp. 440,000 0.176 0.178 0.176 0.178 0.168 -
120 45 3,577 PBC Philippine Bank of Comm. 0 68 68 68 68 68 - 24.95 9 17,299 ALHI Anchor Land Hldgs., Inc. 8,800 24 27.45 23.05 24.95 24 54,260
Bloomberry Resorts Corp. 28,165,900 Aboitiz Power Corp. 144,519,000
77.4 41 46,854 PNB Philippine National Bank 88,370 71.8 71.85 70.75 70.75 72 352,904 0.8 0.31 1,015 ARA Araneta Properties, Inc. 18,000 0.65 0.65 0.65 0.65 0.65 -
Abra Mining and Ind’l. Corp. 23,000,000 Ayala Land, Inc. 143,107,000
85 63 19,701 PSB Philippine Savings Bank 6,380 82 82 82 82 82 - 22.5 13.5 278,471 ALI Ayala Land, Inc. 6,680,300 21.1 21.55 21.1 21.35 21.45 (31,842,615)
Manila Mining Corp. “B” 22,620,000 DMCI Holdings, Inc. 142,607,000 45.5 26.3 49,285 RCB Rizal Commercial Banking 227,500 42.6 43.5 42.6 43.2 43.4 3,531,880 5.18 3.18 50,791 BEL Belle Corp. 4,013,000 4.82 4.93 4.8 4.81 4.81 2,319,320
Filinvest Land, Inc. 18,829,000 Megaworld Corp. 121,949,000 155 77.1 68,371 SECB Security Bank Corp. 832,830 138.4 138.4 135.8 136.1 138.5 (36,783,421) 8.59 2.26 11,501 CHI Cebu Hldgs., Inc. 335,700 5.86 6.15 5.81 5.99 5.97 (34,770)
135 58 64,142 UBP Union Bank of the Phils. 56,510 100 100.5 99.9 100 99.9 1,457,000 3.93 0.76 12,727 CPG Century Prop. Group, Inc. 835,000 1.45 1.46 1.43 1.43 1.43 5,720
Leaders 2.65 1.38 1,623 LAND City and Land Developers 40,000 2.42 2.42 2.4 2.4 2.43 -
Other Financial Institutions 1.31 1.08 3,593 CDC Cityland Dev’t. Corp. 0 1.22 1.22 1.22 1.22 1.22 -
Stocks Volume Close Net ±%
1.45 0.68 1,070 BKD Bankard, Inc. 129,000 0.71 0.71 0.7 0.7 0.68 - 0.091 0.062 1,047 CEI Crown Equities, Inc. 20,000 0.077 0.077 0.077 0.077 0.076 -
MJC Investments Corp. 348,300 7 1.8 34.62%
1.84 1.42 3,719 BLFI BDO Leasing & Fin., Inc. 0 1.72 1.72 1.72 1.72 1.72 - 0.87 0.56 7,642 ELI Empire East Land, Inc. 3,665,000 0.75 0.75 0.72 0.73 0.75 (11,100)
Manila Jockey Club, Inc. 3,456,000 2.59 0.39 17.73% 23.9 13 10,851 COL COL Fin’l. Group, Inc. 400 23.2 23.2 23.2 23.2 23.3 (9,280) 3.57 3 4,608 ETON Eton Prop. Phils., Inc. 0 3.53 3.53 3.53 3.53 3.53 -
F and J Prince Holdings Corp. “A” 21,000 2.74 0.24 9.60% 17.78 8 229 FFI Filipino Fund, Inc. 600 9.62 9.62 9.6 9.6 10 - 0.29 0.107 845 EVER Ever Gotesco Res. 360,000 0.157 0.169 0.157 0.169 0.17 -
ATN Holdings, Inc. “A” 1,748,000 2.58 0.19 7.95% 0.91 0.62 847 FAF First Abacus Financial 0 0.71 0.71 0.71 0.71 0.71 - 1.43 0.98 30,555 FLI Filinvest Land, Inc. 18,829,000 1.24 1.28 1.24 1.26 1.24 4,149,970
A Brown Co., Inc. 428,000 2.78 0.18 6.92% 3.13 2 1,662 I I-Remit, Inc. 277,000 2.78 2.79 2.7 2.76 2.78 60,800 3.01 1.7 14,984 GERI Global-Estate Resorts, Inc. 2,273,000 1.78 1.78 1.76 1.78 1.77 (863,700)
Paxys, Inc. 5,081,000 3.07 0.19 6.60% 710 450 825,993 MFC Manulife Financial Corp. 130 457 457 457 457 460 - 3.1 1.21 4,762 HP Highlands Prime, Inc. 473,000 2.19 2.25 1.95 2.12 2.19 (9,750)
Polar Property Holdings Corp. 2,068,000 4.44 0.26 6.22% 39.15 3.6 41,133 MAKE MayBank ATR Kim Eng Fin’l. 69,700 37.9 38.5 37.9 38.5 38.25 - 3.6 1.5 564 KEP Keppel Phils. Prop., Inc. 1,000 1.92 1.92 1.92 1.92 2.1 -
3.03 1.3 4,141 National
NRCP Reinsurance Corp. 210,000 2 2 1.95 1.95 2 - 2.26 1.52 53,380 MEG Megaworld Corp. 58,631,000 2.07 2.1 2.07 2.08 2.09 3,322,340
Philex Petroleum Corp. 2,718,200 43.15 2.45 6.02%
463 207.2 21,414 PSE The Phil. Stock Exchange, Inc. 810 351 351 349 351 355 - 0.45 0.173 743 MRC MRC Allied Industries, Inc. 2,560,000 0.188 0.188 0.18 0.18 0.186 -
Arthaland Corp. 440,000 0.178 0.01 5.95% 1,240 890 543,708 SLF Sun Life Financial, Inc. 10 920 920 920 920 910 - 0.96 0.08 983 PHES Phil. Estates Corp. 1,953,000 0.68 0.69 0.68 0.68 0.69 -
LMG Chemicals Corp. 1,118,000 1.69 0.09 5.62% 1.99 1.43 3,823 V Vantage Equities, Inc. 351,000 1.81 1.82 1.81 1.82 1.81 - 0.67 0.45 2,264 RLT Philippine Realty & Hldgs. 160,000 0.47 0.47 0.46 0.46 0.49 -
4.44 2.32 21,722 PO Polar Property Hldgs. 2,068,000 4.16 4.47 4.16 4.44 4.18 -
Laggards 18.5 10.4 70,086 RLC Robinsons Land Corp. 541,300 17 17.22 16.92 17.12 17 3,208,010
Stocks Volume Close Net ±% Electricity, Energy, Power & Water 4.9 2.6 18,793 ROCK Rockwell Land Corp. 61,000 3.08 3.09 3.08 3.08 3.08 -
Globalport 900, Inc. 200 22 -5.5 -20.00% 35.35 27 247,249 AP Aboitiz Power Corp. 4,304,000 33.45 33.8 33.45 33.6 33.45 33,557,105 2.6 1.81 12,101 SHNG Shang Properties, Inc. 66,000 2.5 2.54 2.5 2.54 2.54 -
Easycall Comm. Phils., Inc. 10,000 3.2 -0.6 -15.79% 1.62 1.1 8,305 ACR Alsons Cons. Res., Inc. 421,000 1.3 1.34 1.29 1.32 1.3 - 8.09 6 56,276 SMDC SM Development Corp. 414,100 6.01 6.11 6.01 6.07 6 (527,238)
2.85 2.12 396 H2O Calapan Ventures, Inc. 172,000 2.58 2.58 2.4 2.44 2.7 - 14.56 8.8 223,426 SMPH SM Prime Hldgs., Inc. 4,393,500 12.98 13.2 12.78 12.86 12.9 11,661,810
Synergy Grid and Dev’t. Phils., Inc. 140 425 -65 -13.27%
7.02 4.9 111,750 EDC Energy Dev’t. (EDC) Corp. 5,468,600 5.99 6.04 5.96 5.96 5.96 (3,019,477) 0.98 0.64 7,450 SLI Sta. Lucia Land, Inc. 143,000 0.7 0.7 0.67 0.69 0.68 -
Bogo Medellin Milling Co. 500 52.3 -7.7 -12.83% 17.4 12.88 58,381 FGEN First Gen Corp. 3,836,900 17.48 17.66 17.36 17.36 17.4 22,676,300 0.67 0.45 1,193 SUN Suntrust Home Dev., Inc. 306,000 0.52 0.53 0.52 0.53 0.52 -
Metro Pacific Tollways Corp. 1,100 6.51 -0.79 -10.82% 74.65 51.8 40,863 FPH First Phil. Hldgs. Corp. 1,211,340 74.65 75.2 74.3 74.55 74.65 (1,078,716) 4.49 2.7 34,870 VLL Vista Land & Lifescapes 1,566,000 4.14 4.14 4.12 4.14 4.14 1,247,110
Calapan Ventures, Inc. 172,000 2.44 -0.26 -9.63% 25.55 18.5 49,604 MWC Manila Water Co. 1,108,400 24.5 24.5 24.15 24.35 24.5 (17,484,075)
Keppel Phils. Properties, Inc. 1,000 1.92 -0.18 -8.57% 284 216 272,768 MER Manila Electric Co. 215,460 241.8 246.2 241.8 242 241.8 21,071,708 Media
Phil. Realty and Holdings Corp. 160,000 0.46 -0.03 -6.12% 17.2 9.74 95,064 PCOR Petron Corp. 1,641,300 10.14 10.18 10.12 10.14 10.14 (10,607,640) 41.8 28.6 27,130 ABS ABS-CBN Corp. 12,000 34.55 35 34.55 34.8 35 -
Oriental Pet. and Min. Corp. “A” 240,700,000 0.017 -0.001 -5.56% 9.92 6.93 5,967 PNX Phoenix Petroleum Phils. 141,000 8.08 8.12 8.07 8.12 8.13 - 10.4 6.2 34,484 GMA7 GMA Network, Inc. 717,400 10.18 10.3 10.16 10.26 10.18 -
5.6 2.9 8,222 SPC SPC Power Corp. 4,200 5.7 5.7 5.4 5.5 5.3 -
Alaska Milk Corp. 4,900 17 -1 -5.56%
1.33 0.92 3,453 TA Trans-Asia Oil and Energy 216,000 1.22 1.22 1.21 1.22 1.22 61,000 Telecommunications
14.52 2.55 12,773 VVT Vivant Corp. 8,700 11.8 12.88 11.78 12.48 12.32 - 1,249 831 147,615 GLO Globe Telecom, Inc. 85,485 1,080 1,120 1,080 1,115 1,080 17,186,260
Dividend Update 3.88 2.65 3,622 LIB Liberty Telecoms Hldgs. 166,000 2.75 2.8 2.75 2.8 2.71 -
Food, Beverage & Tobacco 2,870 2,100 577,733 TEL Phil. Long Dis. Tel. Co. 336,325 2,628 2,684 2,628 2,674 2,624 433,721,600
ISSUE STOCK CASH EX-DATE RECORD PAYABLE 11.1 6.86 4,800 ANI Agrinurture, Inc. 23,600 8.73 9 8.73 8.96 8.97 -
BDO Leasing and Finance, Inc. P0.05 28-May-’12 31-May-’12 27-Jun-’12 23.75 12 15,058 AMC Alaska Milk Corp. 4,900 16 17 16 17 18 - Information Technology
Sun Life Fin’l., Inc. C$0.36 25-May-’12 30-May-’12 29-Jun-’12 1.64 0.85 1,432 FOOD Alliance Select Foods Int’l. 152,000 1.41 1.43 1.39 1.42 1.39 (36,830) 9.1 5.5 775 DFNN DFNN, Inc. 130,400 6.19 6.31 6 6.31 6.19 -
EEI Corp. P0.025 30-May-’12 04-Jun-’12 29-Jun-’12 85 45 314 BMM Bogo Medellin Milling Co. 500 52.4 52.4 52.3 52.3 60 (26,154) 4.4 2.2 488 CLOUD IP Converge Data Ctr., Inc. 207,000 2.13 2.26 2.11 2.2 2.2 -
Cirtek Hldgs. Phils. Corp. 20% 05-Jun-’12 08-Jun-’12 29-Jun-’12 30.9 20.5 6,063 GSMI Ginebra San Miguel, Inc. 6,200 20.85 20.9 20.5 20.9 20.9 - 0.33 0.039 736 EG IP E-Game Ventures, Inc. 70,000,000 0.039 0.04 0.038 0.039 0.039 39,000
119.5 81.95 112,137 JFC Jollibee Foods Corp. 191,140 107 108.2 106.6 107.9 107 15,969,892 3.5 1.02 1,360 IP IPVG Corp. 441,000 1.06 1.06 1.05 1.05 1.05 -
Pancake House, Inc. P0.1469 11-Jun-’12 15-Jun-’12 29-Jun-’12
12.2 7.5 2,497 PCKH Pancake House, Inc. 0 10.5 10.5 10.5 10.5 10.5 - 0.074 0.042 259 IS Island Info. and Tech., Inc. 410,000 0.053 0.053 0.053 0.053 0.053 -
SPC Power Corp. P0.10 11-Jun-’12 15-Jun-’12 03-Jul-’12 2.97 1.96 10,232 PIP Pepsi-Cola Products Phils. 710,000 2.77 2.78 2.77 2.77 2.7 554,000 4.94 2.55 4,982 ISM ISM Comm. Corp. 21,000 2.65 2.65 2.6 2.6 2.65 -
3.04 1.05 9,260 RFM RFM Corp. 307,000 2.92 2.95 2.91 2.93 2.92 (234,420) 17.62 12.33 19,378 WEB Philweb Corp. 208,200 13 13 12.8 12.8 13 (726,546)
Schedule of Meeting 3.72 2.01 2,274 ROX Roxas Hldgs., Inc. 0 2.5 2.5 2.5 2.5 2.5 -
33 28 446,904 SMB San Miguel Brewery, Inc. 2,000 29 29 29 29 29 - Transportation Services
Date Company Time & Place 132.2 110.6 274,352 SMC San Miguel Corp. 308,220 115 115.9 114.9 115.8 115.5 25,577,118 4.45 1.25 4,305 2GO 2Go Group, Inc. 4,000 1.76 1.76 1.76 1.76 1.76 -
June 0.221 0.115 209 SFI Swift Foods, Inc. 2,150,000 0.129 0.129 0.125 0.126 0.129 - 9.3 7.3 17,500 ATI Asian Terminals, Inc. 4,000 8.75 8.75 8.75 8.75 8.6 -
5.1 3.3 15,945 TDY Tanduay Hldgs., Inc. 1,159,000 4.4 4.47 4.4 4.45 4.43 (44,600) 92 62 41,235 CEB Cebu Air, Inc. 988,950 68 68.5 67.7 68.05 67.4 (5,846,673)
27 Nat’l Reins. Corp. of the Phils. (Annual) 3:00 p.m. C.P. Romulo Auditorium, Podium 4, Tower II,
25 12.5 385 CAT Central Azucarera De Tarlac 1,000 17 17 13.62 13.62 13.52 - 77 45.25 138,680 ICT Int’l. Cont. Term’l. Serv., Inc. 802,610 71.5 71.85 71 71.4 71.5 (17,810,599)
RCBC Plaza, 6819 Ayala Avenue, Makati City 68.05 37 135,253 URC Universal Robina Corp. 804,250 61.45 62.2 61.35 62 61.2 (3,026,850) 3.81 2.71 3,461 MAC Macroasia Corp. 13,000 2.8 2.8 2.8 2.8 2.8 -
27 Philex Mining Corp. (Annual) 2:30 p.m. Dusit Thani Hotel, Ayala Center, Makati City 2.99 1.2 3,017 VMC Victorias Milling Co. 3,400,000 1.5 1.51 1.48 1.49 1.49 (1,366,020) 9.49 5.6 32,410 TOL Metro Pacific Tollways 1,100 6.51 6.51 6.51 6.51 7.3 -
27 Century Prop. Group, Inc. (Annual) 9:30 a.m. Mandarin Oriental Hotel, Makati City 0.88 0.28 279 VITA Vitarich Corp. 1,392,000 0.68 0.7 0.67 0.68 0.69 - 8.3 4.8 39,523 PAL PAL Hldgs., Inc. 30,500 7.3 7.5 7.29 7.29 7.23 -
27 RFM Corp. (Annual) 11:00 a.m. RFM Corporate Center, Pioneer corner
Construction, Infrastructure & Allied Services Hotel & Leisure
Sheridan Streets, Mandaluyong City
55.85 15.08 4,770 ABG Asiabest Group Int’l., Inc. 63,000 24.4 24.5 22.75 23.85 24.5 2,450 5.69 0.5 1,544 ACE Acesite (Phils.) Hotel Corp. 127,000 4.67 4.67 4.22 4.48 4.68 69,100
NOTE: These schedules are subject to change without any further notice. 100 42 1,744 CA Concrete Aggregates “A” 250 79 79 79 79 79 - 0.49 0.092 1,115 BHI Boulevard Hldgs., Inc. 10,100,000 0.14 0.142 0.139 0.14 0.14 -
6.4 2.8 6,415 EEI EEI Corp. 512,600 6.24 6.24 6.19 6.19 6.24 (2,655,592) 10.76 5.99 6,589 LR Leisure and Resorts Corp. 290,200 6.7 6.7 6.59 6.59 6.69 596,893
NAV One Year Three Year Five Year Y-T-D 18 5.8 368 FED Federal Res. Inv. Group 0 9.8 9.8 9.8 9.8 9.8 - 2.71 1.25 2,234 MJC Manila Jockey Club, Inc. 3,456,000 2.2 2.69 2.2 2.59 2.2 388,490
MUTUAL FUNDS 12.3 7.8 74,199 HLCM Holcim Philippines, Inc. 222,700 11.2 11.5 11.2 11.5 11.5 (2,054,250) 9.5 5 5,423 PRC Philippine Racing Club 5,900 9.26 9.26 9.26 9.26 9.26 -
per share Return Return* Return* Return
TUESDAY, JUNE 26, 2012 6.48 0.75 2,959 MMI Mariwasa Siam Hldgs., Inc. 15,000 2.63 2.63 2.63 2.63 2.65 - 0.41 0.24 602 PHA Premiere Horizon Alliance 1,200,000 0.33 0.33 0.33 0.33 0.32 -
% % % %
Stock Funds 17.98 7.2 18,940 MWIDE Megawide Const. Corp. 234,500 17.2 17.2 17 17 17.2 (93,510)
Primarily invested in Peso securities 13.6 10.2 2,650 PHN Phinma Corp. 3,000 10.28 10.28 10.28 10.28 10.28 - Education
ATRKE Equity Opportunity Fund, Inc. * 3.2031  14.15%  26.37%  6.39%  16.72%  9.2 5.25 49,211 RCM Republic Cement Corp. 2,800 8.44 8.45 8.44 8.45 8.2 - 10.6 8.2 3,873 CEU Centro Escolar University 5,700 10.4 10.4 10.4 10.4 10.4 -
First Metro Save & Learn Equity Fund, Inc. * 4.3656  25.1%  36.8%  14.07%  15.61%  1.85 1.3 11,094 CMT SE Asia Cement Hldgs. 16,315,000 1.72 1.73 1.7 1.72 1.73 - 6.68 4.3 4,643 IPO iPeople, Inc. 0 6.2 6.2 6.2 6.2 6.2 -
Philam Strategic Growth Fund, Inc. * 471.43  22.7%  31.82%  11.55%  21.42%  1.17 0.71 551 VUL Vulcan Industrial Corp. 18,000 0.93 0.93 0.93 0.93 0.93 -
Philequity Fund, Inc. * 25.544  22.35%  34.21%  12.67%  19.2%  Diversified Services
Philequity PSE Index Fund, Inc. * 3.4184  21.13%  28.64%  10.71%  16.72%  Chemicals 0.74 0.51 4,958 APC APC Group, Inc. 1,652,000 0.66 0.66 0.66 0.66 0.65 -
Philippine Stock Index Fund Corp. * 568.4  22.8%  28.1%  7.33%  19.31%  3.01 2.32 3,503 COAT Chemrez Technologies, Inc. 70,000 2.65 2.65 2.65 2.65 2.65 132,500 23.95 7.35 3,277 CAL Calata Corp. 836,600 9.18 9.25 9.08 9.1 9.3 (101,052)
Sun Life Prosperity Phil. Equity Fund, Inc. * 3.1672  16.64%  26.38%  8.59%  17.9% 
2.85 1 7,443 EURO Euro-Med Lab. Phil., Inc. 1,000 1.81 1.81 1.81 1.81 1.78 - 5.09 1.6 480 ECP Easycall Comm. Phils., Inc. 10,000 3.2 3.2 3.2 3.2 3.8 -
United Fund, Inc.* 2.9604  8.17%  13.17%  4.91%  7.56% 
Primarily invested in foreign currency securities 8 1.21 327 LMG LMG Chemicals Corp. 1,118,000 1.62 1.84 1.62 1.69 1.6 (15,100) 59.15 1.54 4,946 PORT Globalport 900, Inc. 200 22 22 22 22 27.5 -
ATR KimEng Asia Plus Recovery Fund ** $0.862  -23.28%  n.a.  n.a.  -2.72%  2.49 1.05 605 MIH Manchester Int’l. “A” 65,000 2.35 2.35 2.2 2.22 2.26 - 0.87 0.36 553 ICTV Information Capital Tech. 140,000 0.41 0.42 0.41 0.42 0.41 -
Balanced Funds 21.9 17.2 4,251 LOTO Pacific Online Sys. Corp. 78,100 21.4 21.8 21.4 21.8 21.4 -
Primarily invested in Peso securities Diversified Industrials 3.21 1.05 3,526 PAX Paxys, Inc. 5,081,000 2.86 3.09 2.85 3.07 2.88 284,110
ALFM Growth Fund, Inc. * 215.51  17.42%  30.41%  n.a.  16.03%  50 28 56,355 ALPHA Alphaland Corp. 200 28.4 28.4 28.4 28.4 28.5 - 26.8 10.68 53,600 PGOLD Puregold Price Club, Inc. 1,120,400 26.8 27.1 26.75 26.8 26.8 228,810
ATRKE Phil. Balanced Fund, Inc. * 1.7906  13.11%  18.85%  5.19%  13.24%  76 3.02 93,932 BLOOM Bloomberry Resorts Corp. 28,165,900 8.94 8.96 8.8 8.87 8.9 (37,210,690) 60 17.39 15,252 SEVN Philippine Seven Corp. 20,100 42.5 44 42.5 44 43.1 -
Bahay Pari Solidaritas Fund, Inc.* 1.6902  18.21%  n.a.  n.a.  18.07%  9.64 6.33 1,845 CHIPS Cirtek Hldgs. Phils. Corp. 101,100 9.3 9.59 9.05 9.48 9.34 -
First Metro Save & Learn Balanced Fund * 2.4329  23.47%  33.52%  19.54%  14.77%  0.019 0.0071 1,227 GREEN Greenenergy Hldgs., Inc. 1,000,000 0.013 0.013 0.013 0.013 0.013 - Mining
GSIS Mutual Fund, Inc. * 3.5478  19.51%  27.23%  10.62%  20.33% 
6.6 3.9 5,736 Integ.
IMI Micro-Electronics 63,000 4 4 4 4 4 - 0.0077 0.0039 768 AR Abra Mng. and Ind’l. Corp. 23,000,000 0.0042 0.0042 0.0042 0.0042 0.0041 -
NCM Mutual Funds of the Phils., Inc. * 1.7292  19.93%  n.a.  n.a.  16.84% 
Optima Balanced Fund, Inc. * 1.4564  16.69%  19.29%  8.94%  13.07%  1.02 0.47 668 ION Ionics, Inc. 140,000 0.79 0.79 0.77 0.78 0.78 (15,800) 5.79 3.25 4,553 APX Apex Mining Co., Inc. “A” 13,000 5.13 5.2 5.13 5.2 5.25 -
Philam Fund, Inc. * 15.5508  21.43%  27.82%  10.71%  19.52%  2.3 1.81 1,208 SPH Splash Corp. 55,000 1.93 1.93 1.86 1.86 1.84 - 24.85 14.8 33,183 AT Atlas Cons. Mng. & Dev’t. 2,015,800 18.08 18.52 18.08 18.44 18.04 (1,571,922)
Sun Life Prosperity Balanced Fund, Inc. * 3.0863  13.64%  18.94%  7.55%  13.37%  38.6 21.75 75,841 AB Atok-Big Wedge Co., Inc. 1,000 29.8 29.8 29.8 29.8 30 (29,800)
Primarily invested in foreign currency securities Holding Firms 29.8 18 2,424 BC Benguet Corp. “A” 101,400 23.05 24 22.5 23.7 24.4 -
Cocolife Dollar Fund Builder, Inc. * $0.03251  6.44%  n.a.  n.a.  4.53%  1.15 0.66 1,885 ABA Abacus Cons. Res. & Hldg. 369,000 0.71 0.71 0.71 0.71 0.7 - 2.15 1.39 4,231 CPM Century Peak Metals Hldgs. 160,000 1.5 1.5 1.5 1.5 1.54 -
PAMI Asia Balanced Fund, Inc. * $0.9228  -8.65%  n.a.  n.a.  0.3%  54.8 36 259,252 AEV Aboitiz Equity Ventures 2,523,800 46 47.5 46 46.95 46.75 (91,942,295) 59.95 5.3 2,816 DIZ Dizon Copper Silver Mines 1,128,000 37.9 38.5 36 36.1 38 (14,536,255)
Paradigm Global Growth Fund, Inc. * $0.02442  3.39%  n.a.  n.a.  3.39%  0.019 0.014 2,040 APM Alcorn Gold Res. Corp. 0 0.016 0.016 0.016 0.016 0.016 - 1.13 0.51 2,485 GEO GEOGRACE Res. Phils. 2,290,000 0.73 0.73 0.7 0.71 0.73 -
Sun Life Prosperity Dollar Advantage Fund * $2.717  0.41%  2.84%  1.89%  2.48%  13.7 8.42 123,238 AGI Alliance Global Group, Inc. 32,860,900 11.98 12 11.88 12 12 72,385,360 1.79 0.9 35,386 LC Lepanto Cons. Mng. “A” 17,798,000 1.39 1.4 1.36 1.36 1.39 -
Bond Funds
Primarily invested in Peso securities 2.8 1.8 2,330 APO Anglo-Phil. Hldgs. Corp. 335,000 2.01 2.01 2 2 2 - 2.04 1 25,152 LCB Lepanto Cons. Mng. “B” 4,746,000 1.47 1.47 1.44 1.45 1.47 (2,622,020)
ALFM Peso Bond Fund, Inc. * 287.84  8.13%  6.59%  6.05%  1.62%  5 3 11,450 ANS A. Soriano Corp. 91,000 4.57 4.58 4.45 4.58 4.57 400,260 0.082 0.043 8,482 MA Manila Mining Corp. “A” 53,100,000 0.069 0.07 0.069 0.07 0.069 -
Cocolife Fixed Income Fund, Inc. * 2.1191  8.54%  11.06%  8.93%  4.58%  6.71 0.28 4,040 AAA Asia Amalgamated Hldgs. 110,000 5.12 5.2 5.05 5.05 5.11 - 0.085 0.044 5,570 MAB Manila Mining Corp. “B” 22,620,000 0.07 0.07 0.069 0.069 0.07 (690,100)
Ekklesia Mutual Fund, Inc. * 1.7664  12.26%  7.08%  5.41%  1.96%  2.63 1.51 955 ATN ATN Hldgs., Inc. “A” 1,748,000 2.4 2.59 2.3 2.58 2.39 - 35.5 16.5 40,286 NIKL Nickel Asia Corp. 726,700 30.95 30.95 30 30.05 30.85 (4,480,920)
First Metro Save & Learn Fixed Income Fund 1.7052  14.4%  9.84%  7.57%  2.61%  3.88 2.22 215 ATNB ATN Hldgs., Inc. “B” 279,000 2.55 2.75 2.53 2.69 2.55 (76,650) 12.56 2.15 7,980 NI Nihao Min. Resources 4,357,900 8.7 9.08 8.65 8.74 8.7 87,400
Grepalife Bond Fund Corp. * 1.1954  2.89%  n.a.  n.a.  0.07%  474 273.2 271,348 AC Ayala Corp. 533,250 468.8 474 465 470 468 (39,759,228) 1.2 0.69 756 OM Omico Corp. 3,000 0.72 0.72 0.72 0.72 0.71 -
Philam Bond Fund, Inc. * 3.4317  8.61%  6.36%  5.7%  0.5%  900 260 315 BH BHI Hldgs., Inc. 0 630 630 630 630 630 - 8.25 2.63 7,507 ORE Oriental Peninsula Res. 2,311,900 5.29 5.32 5.1 5.17 5.3 10,240
Philequity Peso Bond Fund, Inc. 2.8448  8.38%  7.38%  6.2%  1.8%  63.4 30.6 150,567 DMC DMCI Hldgs., Inc. 2,516,350 55.85 57.2 55.4 56.7 55.1 35,980,140 28.6 18.56 118,377 PX Philex Mining Corp. 4,976,300 23.95 24.8 23.9 24 23.95 11,269,180
Prudentialife Fixed Income Fund, Inc. * 1.648  5.15%  3.36%  3.39%  1.26% 
3.56 1.25 802 FJP F&J Prince Hldgs. Corp.”A” 21,000 2.45 2.74 2.41 2.74 2.5 - 256 164 78,375 SCC Semirara Mining Corp. 230,280 217 220.2 215.2 220 215 37,537,600
Sun Life Prosperity Bond Fund, Inc. * 2.4381  8.86%  6.96%  5.28%  1.25% 
Sun Life Prosperity GS Fund, Inc. * 1.4231  8.28%  7.83%  6.14%  1.64%  5.06 3.3 36,338 FDC Filinvest Dev’t. Corp. 243,000 3.95 3.95 3.9 3.9 3.94 - 0.027 0.015 5,226 UPM United Paragon Mng. Co. 14,200,000 0.019 0.02 0.018 0.02 0.02 -
Primarily invested in foreign currency securities 0.34 0.1 368 FPI Forum Pacific, Inc. 0 0.2 0.2 0.2 0.2 0.2 -
ALFM Dollar Bond Fund, Inc. * $377.27  6.29%  5.97%  4.86%  4.02%  513 465 77,104 GTCAP GT Capital Hldgs., Inc. 62,510 481.4 492.8 481.4 488 489 6,570,550 Oil
ALFM Euro Bond Fund, Inc. * €186.47  5.62%  4.19%  3.12%  4.03%  4.92 2.93 2,680 HI House of Investments, Inc. 11,000 4.27 4.35 4.26 4.35 4.26 - 0.38 0.148 672 BSC Basic Energy Corp. 3,050,000 0.28 0.28 0.27 0.28 0.28 -
ATR KimEng Total Return Bond Fund, Inc. ** $1.0394  4.34%  n.a.  n.a.  1.11%  35.5 19.5 235,547 JGS JG Summit Hldgs., Inc. 1,009,700 34.5 35.25 34 34.95 34.55 7,226,355 0.031 0.013 2,040 OPM Oriental Pet. & Min. “A” 240,700,000 0.018 0.018 0.017 0.017 0.018 -
Grepalife Dollar Bond Fund Corp. * $1.4593  4.29%  6.54%  5.55%  2.31%  1.49 0.66 807 LIHC Lodestar Invest. Hldg. “A” 132,000 1.08 1.09 1.08 1.09 1.09 - 0.031 0.014 1,440 OPMB Oriental Pet. & Min. “B” 2,700,000 0.018 0.018 0.018 0.018 0.019 -
Grepalife Fixed Income Fund Corp. * P1.5172  6.93%  6.56%  5.19%  1.15%  6.13 4 26,860 LPZ Lopez Hldgs. Corp. 1,691,800 5.9 5.9 5.78 5.86 5.9 4,588,883 6.8 5.22 1,698 PERC Petroenergy Res. Corp. 200 6.2 6.2 6.2 6.2 6 -
MAA Privilege Dollar Fixed Income Fund, Inc. $1.37975  6.43%  2.25%  2.51%  n.a. 0.8 0.3 480 MHC Mabuhay Hldgs. Corp. 160,000 0.4 0.4 0.4 0.4 0.42 - 43.15 4.48 73,355 PXP Philex Petroleum Corp. 2,718,200 41.2 43.6 40.75 43.15 40.7 20,770,150
MAA Privilege Euro Fixed Income Fund, Inc. €0.02813  n.a.  n.a.  n.a.  -97.9% 
3.73 1.79 4,319 MARC Marcventures Hldgs., Inc. 2,616,000 2.54 2.59 2.49 2.49 2.56 (999,680) 0.06 0.017 9,593 OV The Philodrill Corp. 670,100,000 0.049 0.05 0.048 0.05 0.049 (3,265,800)
PAMI Global Bond Fund, Inc. * $1.2026  -0.76%  2.91%  n.a.  -0.36% 
Philam Dollar Bond Fund, Inc. * $1.9616  7.1%  8.15%  6.2%  4.48%  4.6 2.61 101,343 MPI Metro Pac. Inv. Corp. 10,135,000 4.16 4.17 4.12 4.12 4.16 (9,887,970)
Philequity Dollar Income Fund, Inc. $0.0508344  8.12%  8.35%  6.73%  5.47%  5.86 2.52 931 MIC Minerales Industrias Corp. 224,000 4.9 4.9 4.8 4.9 4.85 - Preferred
Sun Life Prosperity Dollar Abundance Fund * $2.7999  9.97%  8.19%  5.77%  4.68%  7 1.23 745 MJIC MJC Investments Corp. 348,300 5.2 7.1 5.2 7 5.2 (177,350) 103.5 100.2 10,200 FGENG First Gen Corp. Pref. G 49,240 100 103.4 100 102 103.5 -
Money Market Funds 0.074 0.045 2,040 PA Pacifica, Inc. 4,200,000 0.052 0.052 0.05 0.051 0.051 - 109 100.5 4,472 FPHP First Phil. Hldgs. - Pref. 100,100 104.8 104.8 104 104 104.8 -
Primarily invested in Peso securities 2.13 1.3 523 PRIM Prime Media Hldgs., Inc. 3,000 1.35 1.35 1.35 1.35 1.36 - 1,050 998 15,255 PFP San Miguel Purefoods Pref. 9,310 1,018 1,018 1,017 1,017 1,018 -
ALFM Money Market Fund, Inc. * 107.78  3.57%  n.a.  n.a.  1.26%  1.66 1.1 2,623 SGI Solid Group, Inc. 4,880,000 1.42 1.5 1.39 1.44 1.42 (14,200) 116.7 106.9 11,000 PPREF Petron Corp. Perpetual Pref. 9,550 110 110 110 110 110 -
ATRKE Alpha Opportunity Fund, Inc. * 1.113  0.53%  0.59%  -1.03%  0.09%  799.5 425 21,023 SGP Synergy Grid & Dev’t Phils., Inc. 140 440 440 425 425 490 - 6 0.87 68 SFIP Swift Foods, Inc. Conv. Pref. 54,000 1.05 1.05 1.05 1.05 1.07 -
First Metro Save & Learn Money Market Fund 1.0566  2.18%  1.83%  n.a.  1.13%  0.48 0.28 2,537 SINO Sinophil Corp. 310,000 0.32 0.32 0.32 0.32 0.32 -
Philam Managed Income Fund, Inc. * 1.1334  2.44%  1.9%  2.03%  1.43% 
710 450 435,851 SM SM Investments Corp. 248,690 717 718 708 710 710 35,343,910 Warrants, Phil. Deposit Receipts, Etc.
Sun Life Prosperity Money Market Fund * 1.1296  0.5%  0.63%  1.19%  0.25% 
Source: Philippine Investment Funds Association, Inc. (PIFA) 1.9 1 217 SPM Seafront Resources Corp. 1,000 1.33 1.33 1.33 1.33 1.32 - 50 29.5 9,234 ABSP ABS-CBN Hldgs. Corp. 100 33.95 33.95 33.95 33.95 33 -
NOTE: * NAVPS as of the previous banking day; ** NAVPS as of two banking days ago; 0.37 0.1 334 UNI Unioil Res. And Hldgs. Co. 20,000 0.21 0.21 0.21 0.21 0.21 - 10.94 6.03 8,751 GMAP GMA Hldgs., Inc. 4,350,100 10.2 10.2 10.16 10.16 10.2 4,819,280
WEDNESDAY, JUNE 27, 2012 BANKING & FINANCE S2 / 3

Cyprus fifth euro zone state to seek aid

MARKET WATCH Peso
from S2/1
LENDING RATES
TUESDAY, JUNE 26, 2012
High Low The local currency gained 17
UNIVERSAL BANKS centavos to close at P42.47 to the NICOSIA/ATHENS — A fifth on June 9. Moody’s Investors Ser- shut out from raising new funds breaking up by electing a govern-
LOCAL BANKS
dollar from a P42.64 finish on euro zone country turned to vice cut the ratings of 28 out of 33 on capital markets, with yields on ment this month committed to
Allied Banking Corporation 8.4000 8.4000
Banco de Oro Unibank 6.1740 5.1740 Monday. Brussels for emergency funding rated Spanish banks by one to four existing bonds well into double implementing its €130-billion
Bank of the Philippine Islands 6.4000 5.0000
China Banking Corporation 9.0000 5.5000 “The peso strengthened as new on Monday when Cyprus an- notches in a decision announced digits. bailout program, was also thrown
Development Bank of the Philis. 6.6500 4.6500 home sales in the US increased to nounced it was seeking a lifeline late Monday afternoon in New An island with just 1 million into confusion on Monday when
Land Bank of the Phils. 7.3590 4.3590
MetroBank and Trust Co. 8.0000 6.0000 a new high, showing signs of a for its banks and its budget, York. Those downgrades followed residents, Cyprus has a dispro- its new finance minister, Vassilis
Philippine National Bank 9.2980 7.2980
housing market recovery,” a trader hours after Spain submitted a a cut of Spain’s sovereign rating portionately large financial sector Rapanos was forced to resign due
Philippine Trust Co. 7.1740 5.1740
Rizal Commercial Banking Corp. 7.7500 5.7500 said in a phone interview. formal request to bail out its to just above junk status earlier that is heavily exposed to Greece, to ill health. Newly elected Prime
Security Bank Corporation 8.4000 6.4000
Union Bank of the Philippines 8.5000 6.5000 Sales of new houses grew by banks. this month. a neighbor more than 10 times Minister Antonis Samaras, who
United Coconut Planters Bank 8.1250 6.1250 an annual 19.8% to 369,000 in Global share prices and the Tiny Cyprus has just four the size with which it shares a wants to win easier terms from the
AVERAGE 7.7869 5.8715
May, the US Census Bureau and euro slid as investors bet that days to raise at least €1.8 billion language, culture and close politi- EU for the bailout, will also miss
BRANCHES OF FOREIGN BANKS
the Department of Housing and European leaders — due to meet — equivalent to about 10% of cal links. the European summit because
ANZ Bank 10.4000 7.8000
Deutsche Bank 8.8870 4.0000 Urban Development reported this week for the 20th time since its domestic output — to meet a It received €2.5 billion in a of an eye operation. A visit by
Hongkong & Shanghai Bank 5.6300 3.3800
ING Bank 7.6800 6.6300 yesterday. The latest figure was the currency zone’s debt crisis hit deadline set by European regula- loan from Russia last year and has “troika” inspectors representing
Mizuho Corporate Bank Ltd. 7.2500 3.5000 also 7.6% more than the 343,000 Greece in 2010 — would fail to tors to recapitalize Cyprus Popular been scrambling for funding from Greece’s international creditors
Standard Chartered Bank 9.6800 6.8900
AVERAGE 8.1280 5.6400 recorded in April. The May 2012 come up with radical measures to Bank, its second largest lender Moscow or Beijing to avoid the — the EU, European Central Bank

data was the highest in two years. back up weak countries. which saw its balance sheet hurt terms Brussels imposes in return and IMF — which was due this
COMMERCIAL BANKS
LOCAL BANKS: Still, another trader said “sen- Germany’s Chancellor An- by bad Greek debt. for EU bailouts. week has been postponed.
Asia United Bank 7.0000 6.0000
Bank of Commerce 9.2500 6.7500 timents remain cautious against gela Merkel dashed any hope that Finance Minister Vassos Shi- Jean-Claude Juncker, head of A German spokesman said
BDO Private Bank 6.1740 5.1740 [sic] the EU Summit at the end Berlin would allow joint bonds arly said the country would also the Eurogroup of euro zone lead- no decisions would be taken on
East West Bank 8.5000 6.6250
Phil. Bank of Communications 8.2500 7.2500 of this week” which observers say issued by the euro zone or other seek enough money to help with ers, said Cyprus would have to Greece at the two-day Brussels
Philippine Veterans Bank 8.0000 6.0000
will not likely provide a clearer measures sought by partners. its budget deficit. The full amount negotiate aid conditions with the summit which starts on Thursday.
Robinsons Bank Corp. 9.7500 5.5000
AVERAGE 8.1320 6.1856 path out of Europe’s current crisis. Cyprus joins Greece, Ireland, would be decided over the course EU and European Central Bank. Leaders will discuss a cross-

BRANCHES OF FOREIGN BANKS The euro, which is tracked by Portugal and Spain in seeking of weeks. “The amount will be “This will include measures border banking union, closer fiscal
Bangkok Bank 8.0000 3.5300 the peso, settled at $1.252 against EU rescue funds, meaning more as much as it may be needed to that will address the main chal- integration and a possible debt
Bank of America 7.1740 5.1740
Bank of China 7.5000 4.5000 its $1.2488 finish on Monday. Dol- than a quarter of the 17 euro zone cover the recapitalization and fis- lenges of the Cyprus economy, redemption fund.
Bank of Tokyo-Mitsubishi 6.0000 5.0000
lars traded on totaled $832.410 members are now in the bloc’s cal requirements,” he told Reuters. primarily those of the financial But Ms. Merkel, who leads
Citibank, N.A. 6.5000 3.5800
JPMorgan Chase Bank 8.9000 6.9000 million, more than the $902.360 emergency ward. Italy’s fund- With its coffers emptying sector, and I expect that Cyprus Europe’s biggest economy and
Korea Exchange Bank 9.5000 6.3000
Mega Int’l. Comm’l. Bank Co. Ltd. 8.5000 6.0000 million traded the previous day. ing costs have soared too, which rapidly and hurtling towards an will engage with strong deter- the main contributor to its rescue
AVERAGE 7.7593 5.1230 The peso is seen to trade with- means it could be next. immovable deadline, Cyprus suf- mination in the required policy funds, said sharing debt liability

SUBSIDIARIES OF FOREIGN BANKS in the P42.40-42.70-per-dollar Spain formally submitted its fered a further sovereign credit actions,” he said. within the 17-nation euro area
Chinatrust Bank 6.4170 5.4170
band today, compared to yester- request for up to €100 billion of rating cut on Monday by Fitch, to Greece, which brought the would be “economically wrong
Maybank 11.2500 6.5000
AVERAGE 8.8335 5.9585 day’s P42.46-42.58 range. — KAM funds to bail out its banks, agreed the junk BB+ grade. It is already euro zone back from the brink of and counterproductive”. — Reuters
GENERAL AVERAGE 7.9839 5.6869

MANILA Reference Rates

Source: BSP

BSP REFERENCE RATES

of foreign of US$1 of foreign

TUESDAY, JUNE 26, 2012

Equivalent Equivalent Equivalent Equivalent Equivalent Equivalent

of RPP in of foreign of EURO
India rupee steps fail to cheer mart
Percent per annum; Weekly rates currency in in foreign currency in foreign currency in in foreign MUMBAI/NEW DELHI — India pressures, I think markets will be such plans said at the weekend
Currency US Dollar currency RP peso currency EURO currency
New MRR (days)
announced steps on Monday left disappointed,” he said. that they were unaware of the
Convertible currencies with BSP to bolster the embattled rupee, The steps were the latest by pending measures. At the finance
Mar 12-16 Jun 04-08 Jun 11-15 US dollar 1.000000 1.000000 42.617000 0.023465 0.799808 1.250300
Japanese yen 0.012555 79.649542 0.535100 1.868810 0.010042 99.581757
including a $5-billion increase Indian policymakers trying to ministry in New Delhi, officials
60 3.7500% 3.7500% 3.6875%
UK pound 1.557400 0.642096 66.371700 0.015067 1.245621 0.802812 in the foreign investment cap combat a loss of confidence in the rushed in and out of a meeting
90 6.5625% 6.6250% 6.6250% Hongkong dollar 0.128863 7.760179 5.491800 0.182090 0.103066 9.702521
Swiss franc 1.041450 0.960200 44.383500 0.022531 0.832960 1.200538
in government bonds, but dis- economy, which slumped in the for more than three hours. At one
180 6.6875% 6.7500% 6.6875% Canada dollar 0.971817 1.029000 41.415900 0.024145 0.777267 1.286559 appointed markets hoping for March quarter to its worst growth point a participant said officials
Singapore dollar 0.780762 1.280800 33.273700 0.030054 0.624460 1.601384
Australia dollar 0.997108 1.002900 42.493800 0.023533 0.797495 1.253926
bolder action to prop up a cur- in nine years. were themselves trying to “figure
FOREIGN Interest Rates Bahrain dinar * 2.652661 0.376980 113.048500 0.008846 2.121620 0.471338 rency that hit a record low on The rupee has hit a succession out” what to do.
Kuwait dinar N/A N/A N/A N/A N/A N/A
Percent per annum Saudi Arabia rial 0.266660 3.750094 11.364200 0.087996 0.213277 4.688738
Friday. of record lows this year in a slide “Once again, the government
Apr 30 May 28 Jun 25
Brunei dollar 0.777726 1.285800 33.144300 0.030171 0.622032 1.607634 After the central bank raised that began in the middle of 2011. unnecessarily raised expectations
Indonesia rupiah 0.000106 9433.962264 0.004500 222.222222 0.000085 11764.705882
LIBOR Thailand baht 0.031377 31.870478 1.337200 0.747831 0.025096 39.846988
the bond limit to $20 billion and It has fallen about 7% this year, only to disappoint,” CLSA econo-
90-days 0.4659 0.4669 0.4606 U. A. E. Dirham 0.272272 3.672798 11.603400 0.086182 0.217765 4.592106 announced other relatively minor making it the worst performing mist Rajeev Malik said in a client
E.M.U. euro 1.250300 0.799808 53.284000 0.018767 1.000000 1.000000
180 0.7284 0.7364 0.7339
South Korea won 0.000860 1162.790698 0.036700 27.247956 0.000688 1453.488372
steps, the rupee trimmed gains currency monitored daily in Asia note. “India’s macro imbalances
SIBOR China yuan ** 0.157151 6.363307 6.697300 0.149314 0.125691 7.956019 built up earlier in the day on hopes by Reuters. cannot be fixed by a patchwork of
90-days 0.4650 0.4675 0.4667
180 0.7275 0.7363 0.7367 Others (Not Convertible with BSP)
for more aggressive moves. Stocks After the rupee hit another re- Band-aids or by applying balm.”
Argentina peso 0.221828 4.507997 9.4536 0.105780 0.17742 5.636343 tumbled. cord low, Finance Minister Pranab The rupee rose as high as
Brazil real 0.482649 2.071899 20.5691 0.048617 0.386027 2.590492
FOREX RATE Denmark kroner 0.1682 5.945303 7.1682 0.139505 0.134528 7.433397
“Well, not the ‘shock and awe’ Mukherjee said on Saturday that 56.37 per dollar before the mea-
TUESDAY, JUNE 26, 2012 India rupee 0.017516 57.090660 0.7465 1.339585 0.014009 71.382683 the market was looking for but we steps to arrest the slide would be sures were announced but ended
Malaysia ringgit 0.312989 3.195000 13.3387 0.074970 0.250331 3.994711
41.70
Mexico new peso 0.071799 13.927771 3.0599 0.326808 0.057425 17.414018
shall see what else gets announced. unveiled on Monday, spurring domestic trading on Monday at
New Zealand dollar 0.784929 1.274001 33.4513 0.029894 0.627793 1.592882 Not surprised to see dollar/rupee rampant market speculation. 57.01/02, edging back towards
42.20 Norway kroner 0.166583 6.003014 7.0993 0.140859 0.133234 7.505592
Pakistan rupee 0.010593 94.401964 0.4514 2.215330 0.008472 118.035883
higher,” said Jonathan Cavenagh, The comments from Mr. Friday’s record low of 57.32.
42.70 South African rand 0.117709 8.495527 5.0164 0.199346 0.094145 10.621913 senior forex strategist at Westpac Mukherjee, due to step down The central bank stepped into
Sweden kroner 0.141635 7.060402 6.0361 0.165670 0.113281 8.827606
43.20 Syria pound 0.015662 63.848806 0.6675 1.498127 0.012527 79.827572
in Singapore. on Tuesday so he can run for markets late in the day to support
Taiwan dollar 0.033361 29.975121 1.4217 0.703383 0.026682 37.478450 “Until they address longer- the largely ceremonial post of the currency.
Venezuela bolivar 0.233138 4.289305 9.9356 0.100648 0.186466 5.362908
43.70
SDR Rate = $1.51219 SDR GOLD Buying: $1,585.05 SILVER Buying: $27.50
term structural issues around president, seemed to catch India’s Indian stocks on Monday fell
44.20
▲ * Various banks in Bahrain as quoted in Reuters’ Screen capital flows and competition in policymaking establishment off- 0.53%, having traded higher on
11.4 ** Asian Time Closing Rate as of June 25, 2012
ctvs the domestic retail sector which guard. Three finance ministry the day before the measures were
source: Bangko Sentral ng Pilipinas
44.70
can help bring down inflation officials ordinarily in the loop on unveiled. — Reuters
Feb Mar Apr May Jun

PDS weighted
average rate Current: P42.503
PESO CROSS RATES
Phil Aussie Bahrain Canadian HKong Japan Saudi S’pore Swiss UK US EMU
TUESDAY, JUNE 26, 2012
Indonesia’s central bank
readies bank ownership rule
Volume: $832.41 M
one unit of currency peso dollar dinar dollar dollar yen rial dollar franc pound dollar euro
Previous: P42.617
Philippines 1.0000 0.0235 0.0088 0.0241 0.1821 1.8688 0.0880 0.0301 0.0225 0.0151 0.0235 0.0188
Australia 42.4938 1.0000 0.3759 1.0260 7.7377 79.4128 3.7393 1.2771 0.9574 0.6402 0.9971 0.7975
INTERBANK RATES Bahrain 113.0485 2.6604 1.0000 2.7296 20.5850 211.2661 9.9478 3.3975 2.5471 1.7033 2.6527 2.1216
MONDAY, JUNE 25, 2012 Canada 41.4159 0.9746 0.3664 1.0000 7.5414 77.3984 3.6444 1.2447 0.9331 0.6240 0.9718 0.7773 JAKARTA — Bank Indonesia ownership would depend on the
Demand Rate HIGH: 4 1/4% LOW: 4 1/8% AVE.: 4 3/16%
Hong Kong 5.4918 0.1292 0.0486 0.1326 1.0000 10.2631 0.4833 0.1650 0.1237 0.0827 0.1289 0.1031 said on Tuesday that it was likely bank’s financial health.
Japan 0.5351 0.0126 0.0047 0.0129 0.0974 1.0000 0.0471 0.0161 0.0121 0.0081 0.0126 0.0100 to issue new rules on bank own- The central bank said last
HIGH LOW CLOSE
Saudi Arabia 11.3642 0.2674 0.1005 0.2744 2.0693 21.2375 1.0000 0.3415 0.2560 0.1712 0.2667 0.2133
4.65 Singapore 33.2737 0.7830 0.2943 0.8034 6.0588 62.1822 2.9279 1.0000 0.7497 0.5013 0.7808 0.6245
ership by the end of this month, month that it planned to cap
Switzerland 44.3835 1.0445 0.3926 1.0717 8.0818 82.9443 3.9056 1.3339 1.0000 0.6687 1.0415 0.8330 with majority ownership to be single ownership in the country’s
4.50 United Kingdom 66.3717 1.5619 0.5871 1.6026 12.0856 124.0361 5.8404 1.9947 1.4954 1.0000 1.5574 1.2456 allowed above 40% depending banks at 40% for new investment,
United States 42.6170 1.0029 0.3770 1.0290 7.7601 79.6431 3.7501 1.2808 0.9602 0.6421 1.0000 0.7998 on the central bank’s approval. a rule that if implemented would
4.35 EMU 53.2840 1.2539 0.4713 1.2866 9.7025 99.5776 4.6888 1.6014 1.2005 0.8028 1.2503 1.0000
source of raw data: Bangko Sentral ng Pilipinas
Deputy governor Muliaman D. scupper a $7.3 billion bid by Sin-
4.20 Hadad, in charge of banking regu- gapore’s DBS Group Holdings for
MONDAY, JUNE 25, 2012
lation, said approval of majority Bank Danamon. — Reuters
4.05 MONEY QUOTATIONS source: REUTERS

Asia FX up on short covering

EXCHANGE RATES
3.90
NEW YORK-one US$ expressed in respective India per 10 0.8180 0.8880 Forwards & Deposits (Singapore)
Feb Mar Apr May Jun unit of foreign currency Japan per 100 0.1750 0.1900 One month 0.1250 0.3750
EMU 1.2502/0 1.2502/0 Korea per 100 5.3350 5.4410 Two months 0.1250 0.3750
United Kingdom 1.5569/7 1.5569/7 Philippines 1.4850 1.5550 Three months 0.1875 0.4375 SINGAPORE — Most Asian cur- The Indian rupee was likely
Daily Volume P2.160 B Canada 1.0290/9 1.0290/9 Austria per 100 1.3700 -1.4000 Six months 0.2500 0.5000
Switzerland 0.9602/0 0.9602/0 Belgium per 100 1.1800 -1.2000 Nine months 0.3125 0.5625 rencies edged higher on Tuesday to remain vulnerable in the near
Japan 79.65/6 79.65/6 Brunei 11.4800 -11.5000 One year 0.3750 0.6250
35.0
India 56.96/9 56.96/9 Singapore 5.3350 5.4410 due to short covering, but the term, market players said, add-
Mexico
Denmark
13.9278/5 13.9278/5
5.9453/6 5.9453/6
Switzerland
Taiwan per 100
6.9970 7.0970
23.3000 25.3000
SIBOR RATE-Singapore Interbank Offered
Rates charged in US$ for Asian Dollar loans
Indian rupee was still on shaky ing that they were unconvinced
28.0
Norway 6.0030/7 6.0030/7 Thailand per 100 22.5000 24.5000 Rates fixed at 11:00 a.m. Singapore time ground after traders were disap- that currency bolstering steps
Sweden 07.0604/ 07.0604/ United Kingdom 15.8800 -16.1000 One month 0.2467
21.0 Singapore 1.2808/ 1.2808/ United States 7.7240 7.7940 Two months 0.3550 pointed by rupee bolstering steps announced by the government
Australia 1.0008/ 1.0008/ Japan T/C per 100 7.1040 7.1690 Three months 0.4667
New Zealand 0.7873/ 0.7873/ UK T/C 15.8800 16.0730 Six months 0.7367 announced the previous day. on Monday would have much of
14.0
Hong Kong 7.7600/ 7.7600/ USA T/C 7.7340 7.7860 Nine months 0.9033 Gains in emerging Asian cur- an impact. The Indian measures
S. Africa 08.4860/ 08.4860/ Netherland 5.8600 -5.0000 One year 1.0667
Hungary 230.01/ 230.01/ New Zealand 0.9660 1.1660 rencies were tepid, with traders included a $5-billion increase
Israel 3.9175/ 3.9175/ Norway 1.3770 1.4470 LIBOR RATE -London Interbank Offered
7.0
Iceland 126.23/ 126.23/ Spain per 100 1.0500 -1.0000 Rates charged in US$ for Eurodollar loans skeptical that a European summit in the foreign investment cap in
Czech Koruna 20.671/ 20.671/ Rates fixed at 11:00 a.m. London time
MONEY RATES One Month 0.2453 later this week would deliver con- government bonds.
0.0
LONDON - one pound sterling expressed in Prime rate-charged by large Two Months 0.3428 crete steps to stem the euro zone’s “It’s just too little and too late,”
respective unit of foreign currency at 1637 GMT comm’l banks to their best corp. borrowers; Three months 0.4606
Feb Mar Apr May Jun US 1.5582 1.5586 Broker Loan Rate-charged to broker on stock Four months 0.5621 debt crisis. said Andy Ji, Asian currency strat-
Swiss Franc 1.4946 1.4953 exchange collaterals; Federal Funds-reserves Five months 0.6462
Japan 124.1600 124.33 traded among comm’l banks for overnight use Six months 0.7339 “The disappointment camps egist for Commonwealth Bank of
T-BILL 91-DAY Norway 9.3370 9.3502 Prime rate 3.2500 Nine months 0.9038
EURO 1.2444 1.2451 Discount 0.7500 One year 1.0660 are buying the dollar on dips Australia in Singapore.
MONday, APRIL 30, 2012 Canada 1.6012 1.6022 Broker Loan Rate 2.7500
Denmark 9.2518 9.2550 Federal Funds Rate 0.2500 against Asia,” said a trader for a “I think at the current junc-
4.00 Sweden 10.9838 10.9979
Treasury Bills
Malaysian bank in Kuala Lumpur. ture, the most effective way will
* * * GOLD BULLION * * *
JAPAN-in ¥ per unit of foreign currency 90 days 5.0100 5.0000 WORLD BULLION-in US$ per troy The dollar dipped versus the probably be some sort of FX
3.20 UK 0.8046 0.8051 180 days 5.0700 5.0600 ounce, rupees/10 gms, won/gram
Switzerland 1.2029 1.2037 360 days 5.2100 5.2000 Ldn morning fix 573.50 Malaysian ringgit but its drop was capital controls, which probably
Ldn aftrn fix 156.00 a mild 0.1%, and market players will be more effective than liber-
2.40 SINGAPORE-in S$ per unit of foreign currency EURODOLLAR DEP (New York) London close 133.00 3.04
US 1.2792 1.2794 One month 0.2000 0.3000 New York CLSD cited talk of some dollar bids from alization,” he added.
UK 1.9926 1.9942 Two months 0.2300 0.3600 Zurich CLSD
1.60 Australia 1.2829 1.2837 Three months 0.2800 0.4300 Bombay 24 carat 7,144.00 7,159.00 British and US names. Dollar- Measures aimed at attracting
Per 100 Four months 0.3500 0.5100 Seoul 53,390.00 53,390.00
Hong Kong 0.1648 0.1650 Five months 0.4000 0.6200 selling by South Korean exporters inflows into the rupee may not
Japan 1.6039 1.6050 Six months 0.4900 0.6300 HONG KONG
0.80
Nine months 0.6000 0.7600 International market (99.5 fine US$ per oz)
and hedge funds lent support to work very well at a time when
BANK NOTES One year 0.7100 0.9600 Close 5.00 10.00 the South Korean won, which also investors’ risk tolerance is low and
(Hong Kong)-in HK$ per unit of
0.00
foreign currency; TT-telegraphic transfer MONEY RATES (London) US Gold Prices ($/Troy ounce) gained a slight boost as interbank demand for the safe-haven dollar
Buying Selling Euro$ Depo Engelhard gold (bullion) 1573.32
January 11, 2010 — April 30, 2012 Australia 6.8110 6.9060 One month 0.1600 0.2400 Engelhard gold (fabricated) 1691.32 traders liquidated their long dol- remains strong, Mr. Ji said.
Canada 7.8510 7.9380 Three months 0.3800 0.4600 Handy & Harman (base price) 1570.00
Average yield Current: 2.174 France 1.7500 -2.0000 Six months 0.6500 0.7300 Handy & Harman (fabricated) 1695.60 lar positions and covered short The rupee edged up 0.2% ver-
Previous: 2.494 (April 2, 2012) Germany 7.1100 -7.2000 One year 0.9800 1.0600 Krugerrand 1557.30 8.50 positions in the won, traders said. sus the dollar to 56.91. — Reuters
 4 / S2 WORLD SPORTS
Djokovic, Federer and Sharapova shine; Venus’ star wanes
LONDON — Men’s champion
Novak Djokovic arrived on court
with a golf club, Roger Federer
with his own unique brand of
magic and Maria Sharapova
basking in a Parisian glow as
Wimbledon’s headline acts shone
in the opening day sunshine
yesterday.
While that trio claimed rou-
tine victories to launch the 126th
edition of the grasscourt grand
slam, five-time women’s winner
Venus Williams had a forgettable
day, ditching out in the first round
after losing 6-1 6-3 to Russian
doubles specialist Elena Vesnina.
The 32-year-old, who has been
beset by health problems, was one
of 11 grand slam champions in the
women’s draw, including current
US Open champion Samantha
Stosur and 2011 French Open
winner Li Na, both of whom had
comfortable wins.
World number one Djokovic
was in a playful mood after a clini-
Laylo tops Manila Open Chess
GRANDMASTER Darwin Laylo
grabbed the top spot in the 2012
Manila Open Chess Champion-
ship, dubbed as Mayor’s Cup, last
Sunday at the SM City Manila.
Laylo collected a total score of
7.5 points, half point ahead with
12-time National Open champion
GM Rogelio “Joey” Antonio, Jr. of
Calapan, Oriental Mindoro and for-
mer Philippine Junior Champion
NM Rolando Andador of Talisay,
Negros Occidental, who settled for
second and third place, respectively.
The San Roque, Marikina City
native Laylo defeated fellow GMs
Antonio and Mark Paragua in the
last two round to clinch the title
in the 8-round National Chess
Federation of the Philippines-
sanctioned tournament.
cal 6-3 6-3 6-1 defeat of Spain’s
Juan Carlos Ferrero.
“I mixed it up with a tennis
racket,” the amiable Serb told
reporters of the stunt where he
pulled out a junior club from his
racket bag just moments after
walking on to a packed Center
Court.
“It was a little funny thing.
Fans corrected me straight away,
saying ‘this is not a golf club’,”
he said.
Djokovic could probably have
used the club to beat former
French Open champion Ferrero,
such was his dominance of a con-
test that barely got a mention in
the post-match conference which
ended with the Serb discussing his
pet poodle.
“It’s four years old and cute as
candy,” he said.
Federer, eyeing a record-
equalling seventh Wimbledon
title, limbered up with a tasty 6-1
6-1 6-1 defeat of Spain’s Albert
Laylo took home the P20,000
top prize in the one-day affair,
which was held as part of kickoff
activities for the city’s 441st found-
ing anniversary, also known as
“Araw ng Maynila”.
“Medyo nasa kondisyon po tayo
saka nagbunga din yung araw-
araw na paghahanda natin at
pagre-review ng mga latest ideas
at technique sa chess,” said Laylo,
who is also fresh from winning the
2012 POC-PSC National Games
Open Chess Championships in
Dumaguete City this month.
A veteran member in the Chess
Olympiad and World Cup, Laylo
is also member of the Philippine
Team which captured the silver
medal in the 2010 Asian Games in
Guangzhou, China. — MB
FRANCISCO P. BALTAZAR EDITOR
Ramos, a player without a single
win on grass.
Federer’s 106th on the surface
— a record among active players
— was never in doubt.
Not even being overlooked
for a Centre Court slot ruffled
the majestic Swiss who needs one
more title here to equal the seven
of Pete Sampras.
“Absolutely special, because
you do realize the moment you
walk on to the court that it is a dif-
ferent place here than any other,”
the 30-year-old told reporters.
“Just the respectful clap, no
music. The whole thing is very
much focused on the players and
on the sport, which is beautiful.
We had a great atmosphere on
Court One.”
Sharapova, fresh from win-
ning the French Open and re-
claiming the world no. 1 rank-
ing, dropped only one point in
the opening four games against
Australia’s Anastasia Rodionova
COURTSIDE
ANTHONY L.
CUAYCONG
When the powers that be
at the All England Club an-
nounced the seedings for the
Wimbledon ladies’ singles
championship, not a few ob-
servers were shocked to note
the absence of acknowledged
grasscourt powerhouse Venus
Williams from the list. Forget
that she had played in just five
events this year, and that she
made an unceremonious exit in
the second round of the French
Open, her last tournament. For-
get, too, that she suffered from
Sjogren’s Syndrome, making
her significantly susceptible to
fatigue and joint pain, hence her
although she was eventually
forced to engage second gear in
6-2 6-3 victory.
The Russian will face Bulgar-
ian Tsvetana Pironkova in the
second round — a dangerous
opponent who reached the semi-
finals in 2010 and the quarterfinals
last year.
“The first one’s always tricky,”
Sharapova, the darling of Wimble-
don 2004, told reporters.
“To go out there after not
competing for a couple weeks,
the transition from clay to grass,
I thought I started off the match
really well.”
On paper, Williams’ defeat
by Vesnina represented a shock,
although those present on the
bowl-like Court Two were watch-
ing a pale imitation of the woman
who has graced the tournament
since appearing with her braids,
beads and raw talent in 1997.
The American, who since los-
ing that debut match to Poland’s
Out of shape
spotty schedule and tumble to 55th
in world rankings. As far as her
fans were concerned, her sterling
record in the sport’s preeminent
event merited for her a far more
favorable draw.
As things turned out, Williams’
place in the brackets proved ir-
relevant; for all her experience
as an eight-time finalist and five-
time titleholder, she failed to
even survive her opening match.
In succumbing to unheralded
Elena Vesnina one and three, she
exposed her myriad frailties and
painted herself as willing in spirit
but weak in flesh; considering that
she put only 38 percent of her first
Magdalena Grzybowska had never
experienced an opening round de-
feat here, was 5-0 down in a flash
and never recovered in front of a
sympathetic Court Two crowd,
some of whom had queued from
the early hours of the morning to
grab a ticket for the more intimate
show court.
“I feel like I’m a great player
but I have to deal with circum-
stances that other people don’t
have to deal with in the sport,”
Williams, who finished 2011
outside the world’s top 100 after
battling with injury and Sjogren’s
syndrome, a little-known disorder
that causes fatigue and joint pain.
“There’s no way I’m just go-
ing to sit down and give up just
because I have a hard time the first
five or six freaking tournaments
back,” added the former world
number one who only returned to
action after a seven-month layoff
in March.
“I’m as tough as nails.”
serves in play and managed to win
just 35 percent of total receiving
points, it’s actually a wonder she
lasted 75 minutes on Number Two
Court. No doubt, those who spent
part of Opening Day on the 4,000-
seat show venue were not angling
for a tepid performance.
In hindsight, perhaps it was
too much to expect Williams to
contend for the Venus Rosewa-
ter Dish given her questionable
fitness and evident rust. On the
other hand, it was fair to believe
her capable of working her way
into shape, especially in light of
her previous triumphs at the All
England Club. That she could do
WEDNESDAY, JUNE 27, 2012
All eyes were on Argentine
bad-boy David Nalbandian as he
walked out on Court One to face
Serbia’s Janko Tipsarevic, eight
days after being defaulted in the
final of the Queen’s Club warm-
up tournament for booting an
advertising podium and gashing
the shin of a line judge.
This time the former Wimble-
don finalist kept his cool despite a
6-4 7-6 6-2 defeat.
Injury-hit Belgian Kim Cli-
jsters, playing her farewell Wim-
bledon after announcing she will
retire for a second time in Sep-
tember, showed she is still a class
act when she beat Serbia’s Jelena
Jankovic, another former world
no. 1, 6-2 6-4.
No. 6 Tomas Berdych, a final-
ist two years ago, was beaten by
Latvian Ernests Gulbis 7-6 7-6 7-6,
while John Isner, the top-ranked
American and 11th seed here, lost
to Alejandro Falla of Colombia in
five sets. — Reuters
no better than make a cameo ap-
pearance speaks volumes of her
utter lack of competitiveness.
True, Williams deserves the
benefit of the doubt. As inept as
she may have seemed the other
night, her lengthy resume earns
her a reprieve, but not for long. If
she is really serious about rekin-
dling her love affair with success,
she would do well to increase her
workload. Selective participation
won’t cut it, not with the opposi-
tion getting better and increas-
ingly motivated. Her storied past
can get her only so far; she needs
to fare well in the present in order
to secure her future.
WEDNESDAY, JUNE 27, 2012 WORLD SPORTS S2 / 5

‘Bata,’ other Pinoys advance in World 9-Ball Championship

HALL-OF-FAMER EFREN “Bata”
Reyes and several other Filipino
cue masters scored emphatic vic-
tories over their respective oppo-
nents to advance to the knockout
stage of the 2012 World 9-Ball
Championship at the beautiful Al
Sadd Sports Club in Doha, Qatar,
yesterday.
Reyes, known as “The Magi-
cian” in the pool circuit, outplayed
Al Awadi Bader of Kuwait, 9-2.
“I got lucky,” he said with his
toothless grin.
“He’s a good player but the
break was against him, he never
got a shot. Me, I always got a shot
after the break.”
With the win, Reyes, one of
the top players of Philippine Bil-
liards Godfather Aristeo “Putch”
Puyat, barged into the knockout
stage of the competition after two
consecutive wins.
Following in his footsteps
were compatr iot Fr ancisco
“Django” Bustamante, Lee Vann
“The Slayer” Corteza, Ronato
“Volcano” Alcano, Antonio “Ga-
Ga” Gabica, Carlo “The Black
Dennis Orcollo in a must-win situation
EFREN “BATA” REYES
Tiger” Biado and Roberto “Super-
man” Gomez.
Bustamante toppled Al You-
suf Abdullah of the United
Arab Emirates, 9-4, just as Cor-
teza beat countryman Marlon
Caneda, 9-5.
Alcano, meanwhile, edged
Hunter Lombardi of the United
States, 9-8; Gabica waylaid Den-
However, Dennis Orcollo,
Ramil Gallego, Raymund Faraon,
Joyme Vicente and Jundel Mazon
were relegated to the loser’s side
joining Caneda, Elvis Calasang,
Joven Alba and Israel Rota.
Orcollo
Orcollo was beaten by Andrew
Kong of Hong Kong, 9-5; Gallego
lost to Tony Drago of Malta, 9-6;
Faraon bowed to Johnny Mar-
tinez of Venezuela, 9-8; Vicente
dropped his match against John
Morra of Canada, 9-8; and Mazon
yielded to Vincent Facquet of
France, 9-5.
“Masyadong pressured si Den-
nis (Orcollo). Ang daming Fili-
pinong nagche-cheer sa kanya sa
Qatar. Lahat nakatutok sa kanya,”
said Billiards Managers and Play-
ers Association of the Philippines
(BMPAP) founding head and
BW photo Busgy Promotions top honcho
Ceferino “Perry” Mariano, long-
nis Grabe of Estonia, 9-7; Biado time manager of Orcollo. “Ang
whacked Roman Hybler of Czech masakit sila pa ni Raymond (Far-
Republic, 9-3; and Gomez out- aon) sa do-or-die match. Isa na
played Mohammed Saeed of namang Filipino ang malalagas,”
Qatar, 9-1. added Mariano.
“Mas malaki ang t’sansa na-
tin ngayong maiuuwi ang World
9-Ball crown sa Pilipinas dahil
marami tayong player na naka-
pasok sa KO stage. Saka iilan-ilan
lamang ang nagkatapat sa draw,”
said Puyat.
Orcollo goes up against com-
patriot Faraon; Vicente opposite
Hudiji See of the Netherlands;
Gallego takes on Hsu Kai Lun
of Chinese-Taipei; Mazon versus
Shane Van Boening of the United
States; Calasang will square off
with Al Amar Abdul Rahman of
the Kingdom of Saudi Arabia;
Caneda will meet Ceri Worts of
New Zealand; Alba will face Alba
Nayf Abdel Afou of Jordan and
Rota versus David Anderson of
Republic of South Africa. The
Filipinos need to win if they are
to advance to the Last 64.
Oliver Medenilla is the first
Filipino casualty.
A total of 128 of the best pool
players from over 50 countries, are
vying for $300,000 in prize money,
with $40,000 going to the eventual
winner. — Marlon Bernardino

GIVE AND GO Germany prepares to end Italy jinx in semis

MICHAEL ANGELO
S. MURILLO Jersey sales WARSAW — The four teams left in showed how good a team they
soccer’s European Championship are.”
If player jersey sales are to be used as gauge, then it can be said took a welcome breather from The tournament, being held in
that Los Angeles Lakers superstar guard Kobe Bryant is the National match action yesterday, the first eastern Europe for the first time,
Basketball Association’s top draw internationally. of two rest days ahead of a pair of has been the most closely fought
Last week, the league released its first-ever overall international intriguing semifinals which pit in years.
top selling jersey list. The list was based on sales at Adidas locations familiar foes against one another. But for Poland’s co-host
outside the United States during the 2011-12 season. Germany and holder Spain are Ukraine the successful staging
While the league did not provide exact sales figures, it none- favorites to reach next Sunday’s of matches on the pitch has been
theless ranked “The Black Mamba” as having the most jersey sold final but must overcome respec- marred by a diplomatic boycott
outside of the US. Bryant, who sports #24 as sort of a “symbolism” tively the weight of history and due to the jailing of former prime
for one getting “only 24 hours a day” and needing to “take each day the world’s most expensive player minister Yulia Tymoshenko.
as it comes and not taking a day for granted,” led the Lakers to the Cristiano Ronaldo to get there. A Ukrainian court on Monday
Western Conference semifinals this season but fell short against The Germans, whose exciting adjourned Tymoshenko’s tax eva-
eventual West champs Oklahoma City Thunder. Still, it was a solid young side has won all its games sion trial until mid-July, but that
year for Bryant who finished with averages of 27.9 points, 5.4 so far, scoring nine goals along the will do little to unfreeze talks on
rebounds and 4.6 assists. He continued to make his assault on the way, have never beaten opponent trade and other issues with the Eu-
record books, taking fifth spot on the all-time scoring list (29,484 Italy at a major tournament in ropean Union, or persuade foreign
points) and taking the no. 1 position in career All-Star points (271 seven attempts and are sweat- leaders to attend the tournament
points) while tying a record 14th consecutive All-Star appearance. ing on the fitness of playmaker final in Kiev.
Apart from topping the overall international jersey sales, Bry- Bastian Schweinsteiger ahead of Spain and Portugal meet in
ant was also tops in three key NBA regions: China, Europe and Friday’s game in Warsaw. the first semifinal in the eastern
AFP
Latin America. However, ‘Schweini’ returned A combination of pictures madeonJune25shows Italianmidfielder Andrea Pirlo(L) Ukrainian city of Donetsk on
Coming in second in overall sales was Chicago Bulls All-Star to training yesterday after two days runningwiththeball duringtheir Euro2012football championshipquarterfinal match Wednesday, with the focus on the
guard Derrick Rose (#1). Despite an injury-mired season that was on the sidelines and Germany is against England on June 24 at the Olympic Stadiumin Kiev and German midfielder clash of Ronaldo and his team-
capped by a season-ending ACL injury in the first round of the hopeful he will be able to shake off Bastian Schweinsteiger running with the ball during their Euro 2012 quarterfinal mates from La Liga champion
playoffs, last year’s league most valuable player Rose continued to a nagging ankle problem in time match versus Greece on June 22 at the Gdansk Arena. Germany will face Italy in the Real Madrid.
build on his fame by proving to be in equal parts clutch and excit- to face the Italians. semifinal on June 28 inWarsaw. Madrid midfielder Xabi Alon-
ing when he was healthy. “D-Rose,” who is an Adidas endorser, was Italy has its own injury head- so said Spain did not have a spe-
second in China and Europe and third in LatAm. aches and coach Cesare Prandelli As in 2006, when Italy was first game to go to extra time at cific plan to counter the threat
Third was newly minted champ LeBron James of the Miami complained that the timing of eventually crowned world cham- the finals — before prevailing on of the team’s third top scorer of
Heat (#6). “King James” continued to build on his legend by sweep- the quarterfinals meant their op- pion, the team came into the tour- penalties. all time.
ing MVP honors for the regular season and in the finals with his ponents will have had two extra nament with unwanted headlines “Italy has been surprising “We always play with the same
ever solid all-around game. More importantly, he chalked up that days to recover. at home due to a domestic match- at this tournament and it fully idea whoever the opponent. In this
elusive first-ever NBA title to formalize his entry into the pantheon “It’s a problem that UEFA fixing scandal. deserves to be in the last four,” case, we will analyze Cristiano’s
of the greats. James also finished third in sales in China and Europe must consider for the next Euro- But the Azzurri have drawn Germany midfielder Mesut Ozil game and there may be small
while going up to second in Latin America. pean Championship,” he told a praise for playing an attractive told reporters. adjustments but we will try to
Rounding out the top five were big men Kevin Garnett of the news conference yesterday. attacking game and they had 35 “There was a lot of negative play as a team because that’s the
Boston Celtics (#5) at no. 4 and Dwight Howard of the Orlando “To play a semi with this small shots on goal in Monday’s 0-0 stuff written about them before best way to stop a player,” he told
Magic (#12) at no. 5. Despite all of 36 years of age, “KG,” who was gap does not help the spectacle.” draw with England in Kiev — the the tournament but they have reporters. — Reuters
also fourth in both Europe and Latin America, showed he still has

Spain’s Iker Casillas eyes 100th win in Portugal semifinal

what it takes to compete with the young guns and actually had the
Celtics one win away from advancing to yet another NBA Finals.
Howard, meanwhile, had a distraction-filled season but still solidi-
fied his spot as the best center in the league with averages of 20.6
points, 14.5 rebounds and 2.2 blocks. He finished fourth in China GNIEWINO, POLAND — Spain
and fifth in Europe. captain Iker Casillas can become
Finishing sixth to 10th place were Miami “Big Three” member the first player to notch up 100
Dwyane Wade (#3), Boston point guard maestro Rajon Rondo (#9), victories in international foot-
New York Knicks main man Carmelo Anthony (#7), Los Angeles ball if his team beats Portugal in
Clippers must-see forward Blake Griffin (#32) and Oklahoma City Thursday’s Euro 2012 semifinal.
top-gun Kevin Durant (#35). Wade and Rondo figured prominently To do so, on his 136th appear-
in the key locations as well with the former ending up fifth in LatAm ance for his country, the Real Ma-
and the latter fifth in China. drid goalkeeper will have to thwart
Lakers big man Pau Gasol (#16) was 11th, followed by Dal- his club teammate and Portugal
las Mavericks captain Dirk Nowitzki (#41), frontliner Amar’e captain Cristiano Ronaldo, who
Stoudemire (#1) of the Knicks, Frenchman Tony Parker of the has three goals at the tournament
San Antonio Spurs (#9) and rookie sensation Ricky Rubio of the and has been on scintillating form.
Minnesota Timberwolves (#9) at no. 15. Eliminating the Portuguese,
*** who have only beaten their Ibe-
Just how engaged are Filipinos in social media? Well, for the rian neighbors once in seven
National Basketball Association very much. In data also released last competitive games, would give
week, the Philippines ranked first among countries following the Spain a chance to become the
league on Facebook and Twitter outside of the United States and first nation to win back-to-back
China. The Pinoys bested Turkey, Indonesia, Mexico and France continental titles with a World
in the top five on FB while doing the same on “tweeting,” going Cup in between.
ahead of Indonesia, Brazil, United Kingdom and India. Casillas believes former World
Player of the Year Ronaldo has still
not quite reproduced the form
that helped Real win La Liga for
the first time in four years last
season.
In print and online “His season at Madrid was
Tel : +632 535 9901
Fax : +632 535 9940
incredible in terms of the way he
E-mail : editor@bworld.com.ph played, the goals and the records,”
Web site : www.bworldonline.com the 31-year-old, known in Spain as
“Saint Iker” thanks to his miracu-
Cape Town but the introduction of
striker Fernando Llorente early in
the second half changed the game.
Llorente, whose strength and
height were too much for the Por-
tuguese center backs, could be an
option on Wednesday if the game
follows a similar pattern, defender
Gerard Pique said.
“He used his power in the air to
great effect and fought like a lion,”
Pique told Reuters in an interview
at Spain’s training base in Gniewino,
northern Poland on Monday.
“He could be an option for
Wednesday and he is training very,
very well,” added the 25-year-old.
AFP “He is one of the players who
Combination photo made on June 25 during the Euro 2012 football championship has yet to feature but for sure he
shows Spanish midfielder Xavi Hernandez (R) on June 14 at the Gdansk Arena and will get his chance and that could
PortugueseforwardCristianoRonaldoonJune21at theNational StadiuminWarsaw. be against Portugal.”
Portugal will face Spain on June 27 during their Euro 2012 football championship Pique knows Ronaldo and
semifinal match. fellow winger Nani from his time
lous saves, was quoted as saying in in the air due to the peculiar way at Manchester United and said it
Monday’s Marca sports daily. Ronaldo strikes the ball. would be wrong for Spain to think
“I don’t think that right now Spain’s last competitive meet- Portugal were a one-man team.
he is at his best level,” he added. ing with the Portuguese came at “We will have to use all the
A fired-up Ronaldo has been the 2010 World Cup, when it won weapons in our arsenal to stop
peppering opposition goals with a close encounter 1-0 thanks to him and Ronaldo.”
shots in Portugal’s four Euro 2012 a second-half David Villa strike. The winner of Wednesday’s
outings and Casillas said he will Spain struggled to penetrate game will meet Germany or Italy in
have to be wary of any deviation Portugal’s defense in that match in Monday’s final in Kiev. — Reuters
 6 / S2 BULLETINS
BRIEFS
Bank fun run set
The Bank Marketing Association of
the Philippines (BMAP) is staging
the first-ever fun run for bankers
on July 22 at the Filinvest City in
Alabang. Dubbed as “The Great
Bank Fun Run,” the race event is ex-
pected to bring together more than
2,000 runners from the banking
community and will also be open
to regular running enthusiasts to
promote the habit of saving among
Filipino adults and children. The run
will have 3k, 5k and 10k distance
races with P500 flat registration fee.
Proceeds of the race event will fund
the various programs and initia-
tives of BMAP such as the Banking
On Your Future-Kiddie Account
Program in partnership with the
Bangko Sentral ng Pilipinas, as well
as the review of the Banking Code,
the BMAP National Convention
and other advocacies for the year.
Bangko Sentral ng Pilipinas Gov-
ernor Amando M. Tetangco, Jr. will
lead the gun start and the awarding
ceremonies. For more information,
call 0922-838-6200.
Gov’t workers invited
The Civil Service Commission (CSC)
is holding the “Give It Your Best
Shot! ” Nationwide Photography
Contest in line with the upcoming
celebration of the 112th Philippine
Civil Service Anniversary (PCSA).
The contest is open to all state
workers regardless of appointment
status. However, CSC employees
and all other government employ-
ees affiliated with the National
Press Club and Press Photographers
of the Philippines are ineligible to
join. The contest theme is “Kawani,
Ikaw ay Isang Lingkod Bayani! ”
Thus, submitted photos should
capture the essence of public ser-
vice in the Filipinos’ everyday life.
Deadline of entries is on July 16
at 5 p.m. The contestant with the
best photo will win P20,000, while
the second and third placer will
receive P10,000 and P5,000, respec-
tively. Ten other contestants will be
chosen by the judges to receive a
consolation prize of P1,000 each.
Entries will be judged according to
relevance to the theme, creativity,
technique or use of the elements
of photography, and overall im-
pact. The entry form and full text of
contest guidelines can be viewed
at the official PCSA website at cel-
ebratepcsa.wordpress.com.
Support bared
Hyatt Hotel and Casino Manila
supports Hope in a Bottle, a cause-
oriented campaign that aims to
increase the quality of education in
the Philippines. Hope in a Bottle is
a 500ml bottle of purified drinking
water exclusively distributed by
the Friends of Hope, Inc. Every time
you drink “Hope”, 100 per cent of
the profit goes to building public
schools around the Philippines,
with the priority being on districts
that are in desperate need of class-
rooms and development. Hyatt
Hotel and Casino Manila strongly
believes in the power of education
and its significant role in develop-
ing a nation, which is why bottles
of “Hope” are now available at the
hotel’s Pastry Boutique. For every
“Hope” bottle sold, P10 will benefit
the students of the Divine Healer
Academy, a school run by the Heal-
ing Servants Foundation, Inc. The
Healing Servants Foundation, Inc.
is an organization committed in
giving hope, strength and joy to
the children and families who suf-
fer from poverty in the province
of Sorsogon through various pro-
grammes — one of which focuses
on education. For more informa-
tion, call the Pastry Boutique at
245-1234 ext. 7215.
Contest announced
Share your stories of perfect
Hallmark Moments you shared
with Mom or Dad and get a chance
to win a Canon Vixia FS400 Figital
Camcorder or Canon PowerShot
A3200 Camera by joining the “That
Hallmark Moment” writing contest.
Put those writing skills to the test
and let the whole world know
just how much you treasure your
beloved parents. Entry must have a
maximum of 1,000 words in English
language and must be original and
exclusive to this contest. Submit
entry with a single-receipt purchase
of any Hallmark Mother’s Day and/
or Father’s Day cards from May 1
to June 30 at any National Book
Store branch and other retail stores
nationwide plus a duly filled out
registration form available on-line.
Upload entries on www.filstar.com.
ph. Deadline for submission of en-
tries is on June 30.
Efforts to protect moms bared
“More than ever, there is
now a greater sense of urgency to
strengthen our efforts towards
protecting our mothers,” said
Dr. Eduardo P. Banzon, presi-
dent and chief executive officer
of the Philippine Health Insur-
ance Corporation (PhilHealth)
in response to the 2011 Fam-
ily Health Survey on maternal
deaths released recently by the
National Statistics Office.
Maternal deaths during preg-
nancy or delivery are primarily
due to delays in seeking medical
care, in reaching appropriate
care or in receiving care at health
facilities. To address these delays,
PhilHealth started providing
coverage for facility-based de-
liveries since 2003 through its
Normal Spontaneous Delivery
Package for accredited govern-
ment and private hospitals and
Maternity Care Package (MCP)
for non-hospital facilities.
Over the years, the package
has expanded from covering only
the first normal delivery at P4,500
to four deliveries at P8,000. It also
ensures that the whole spectrum
of care – from prenatal to post-
natal – is delivered. Combined
with the No Balance Billing or
“WalangDagdagBayad ” policy
for all member types, mothers
Youth program Project Pagsulong launched
Select private sectors unite to
play a crucial role in helping the
country meet one of the Millen-
nium Development Goal’s (MDG)
objectives — alleviate poverty
through an impact-oriented pro-
gram, through the launching of
Project Pagsulong, a unique pro-
gram that will search, mold and
enable the best business ideas
from the ‘cream of the crop’ of
young talents nationwide.
PLDT KaAsenso, PLDT-Smart
Foundation, The Outstanding Stu-
dents of the Philippines Alumni
Community (TOSP-AC) and RFM
Foundation are supporting Proj-
ect Pagsulong, a P1 Million youth
challenge to be launched for bud-
ding Pinoy entrepreneurs, 18 to
30 years old.
The program invites a team of
3 to 5 young adults, from all socio-
economic and educational back-
grounds to put together a business
idea that can help alleviate poverty.
Rufo’s restaurant continues expansion plans
Rufo’s Fa mous Tapa (or
simply Rufo’s) is aggressively
pursuing the implementation
of its expansion plans as it sets
to open five more branches by
October this year as announced
by its president, Paul Izon Reyes.
After signing up new fran-
chises, construction of new stores
in SouthPark Highs in Las Pinas,
A.Venue in Makati, Saint Benilde
in Vito Cruz, Blue Wave in Maca-
pagal, Pasay and at the SM Makati
Food Court is expected to go into
full swing.
Rufo’s has branches in Ka-
layaan Ave., Makati; Shaw Blvd
and most recently in Eastwood
City and in Pearl Plaza in Ortigas
Center. Mr. Reyes projects that by
Weber Shandwick names new local president
Global public relations firm
Weber Shandwick recently an-
nounced the appointment of Di-
ana Lesaca as president and chief
operating officer of its Philippines
operations, effective immediately.
Based in Manila, Ms. Lesaca
will oversee both strategy and op-
erations across all practice areas of
the firm, with a particular focus on
digital client communications. Ms.
Lesaca brings with her over two de-
cades of experience in advertising
and communications, consistently
delivering successful creative solu-
tions and managing client accounts
spanning the food and beverage,
consumer goods and telecommu-
nications industries. Lesaca
NOTE: Press and photo releases are published in this paper free of charge. Priority will be accorded to releases of news value, which are
subject to editing. Releases may be e-mailed to bulletins@bworld.com.ph. Materials sent become BW property.
need not worry about expenses
they would incur when delivering
in PhilHealth-accredited non-
hospital facilities and government
hospitals.
“The package is there, but
there remains to be significant
barriers to access to this package.
This is precisely why we launched
the 1MOM (1Municipality, One
MCP Provider) Campaign,” said
Mr. Banzon. The 1MOM Cam-
paign promotes access by pro-
actively ensuring that there is at
least one PhilHealth-accredited
provider in each municipality.
“Accreditation is critical, as it
not only improves quality of
care through implementation
of standards, but also assures
a steady inflow of resources to
the facility. This money can be
used to enhance the facility’s
infrastructure, procure more
supplies and equipment, and
provide incentives to the staff,
thereby capacitating them to
provide better care to mothers,”
he added.
“From 198 accredited fa-
cilities in 2007, the number has
increased to 998 as of March
2012,” reported Dr. Narisa J.
Sugay, head of PhilHealth Ac-
creditation Department and
MDG Benefits Team. “Despite
The program encourages young
individuals to put their heads to-
gether, and come up with workable
and feasible business ideas that
could eventually transform into
social enterprises — the pillar of a
solid economy.
“Today’s young Filipinos are
aggressive, full of ideas and have
the talent and creativity but the
lack of the right avenue to ‘get
out of the box’ and execute their
business ideas hinder them from
achieving their dreams,” said PLDT
head of HOME Marketing for Voice
and Micro-business, Patrick Tang.
“We feel Project Pagsulong is the
answer to their quest to trans-
forming their business concepts
into reality.”
‘Project Pagsulong’ is part of
the PLDT KaAsenso program to
empower and enable progressive
micro-businesses and start-ups, to
increase their profits and maximize
savings with the right communi-
end of 2012, there will be 15 Rufo’s
branches in Metro Manila and
nearby municipalities through
its Rufo’s Famous Franchise
Program.
Partnering with Francorp and
with the help of PSBank’s SME
programs, Mr. Reyes plans to
more than double that number
by end of 2013.
Rufo’s has been a favorite
go-to place for delicious and af-
fordable Pinoy dishes since its
inception in 1984. Mr. Reyes said
that Rufo’s staying power in the
highly-competitive restaurant
landscape is due in large part to
its food. “Our tapa is unique be-
cause we serve it in Rufo’s Famous
Sauce. It is juicy and tender and
PEOPLE
WEDNESDAY, JUNE 27, 2012
the increase in number, our
assessment of distribution has
revealed that only 607 out of
1,646 municipalities and cities
has at least one accredited MCP
provider. Clearly, much still
needs to be done. But we are
very much willing to streamline
processes and provide necessary
support to get more providers
on-board,” she added. Manulife rings PSE bell to mark 125th year
“The 1MOM Campaign is a Indren Naidoo, president and chief executive officer of Manulife Philippines (MFC),
call to action for players within led the ceremonial ringing of the bell at the Philippine Stock Exchange (PSE) in cel-
and outside the health sector. If ebration of MFC’s 125th anniversary. Also present (fromleft) were Margarita Lopez,
you believe that it’s unacceptable senior vice-president and chief operating officer, Manulife Phils.; Hans Sicat, presi-
that our mothers are dying, join dent and chief executive officer, PSE; Ambassador Christopher Thornley, Embassy
us in this campaign. There are of Canada in the Phils.; Jose Pardo, chairman, PSE; Gigi Mantaring, vice-president
many opportunities for you to and general manager, Manulife Business Processing Services; Darren Thomson,
contribute,” said Mr. Banzon.
vice-president - StrategicChannel Dev’t; Manulife Financial Asia; John Curtis, senior
Among the areas of collabo- vice-president andchief agency officer, Manulife Phils.
ration that the campaign offers
are developing management
sk ills of front line prov iders
including midwives; generat-
ing resources for health facility
enhancement to improve deliv-
ery of basic and comprehensive
emergency care; and designing
creative information, education,
and communication programs
for mothers, Mr. Banzon said. He
mentioned that it is also impor-
tant to ensure that mothers are
enrolled in the National Health
Insurance Program to make
Maybank inaugurates branch in Lipa City
them eligible for the package.
Maybank Philippines, Inc. (MPI) recently inaugurated its branch in Lipa City,
Batangas. The inauguration was graced by Dindo Katigbak, chairman and
president of YCP Group of Companies (eighth fromleft); and Antonio DMLacdao,
president of MARLA Land Development Corp. (fourth from left). With them are
Glenn Tabora, Branch head (seventh from left); and Doris Gonzales, Area head
cation and information tools.
This challenge is designed to be (ninth from left). Maybank Lipa branch is located at C.M. Recto Avenue corner
sustainable and impact-oriented; Rizal Street, Lipa City, Batangas.
grants are awarded to the win-
ning teams in phases as the proj-
ect is implemented.
According to Pamela Asis-
Layugan, chairperson of TOSP
Alumni Community, Project Pag-
sulong is unique from other com-
petitions because winners of the
contest, besides receiving cash
grants, will be mentored by PLDT
ambassadors, successful entrepre-
neurs and alumni that are product
of the TOSP search.
IdeaSpace Foundation, Inc.
(IdeaSpace), a non-profit foun-
dation with an incubator and PMA sets Asian Marketing Conference
accelerator program, will also be The Philippine Marketing Association (PMA) recently discussed ongoing prepara-
tapped as a ‘mentor partner’ to
tions in relation to the Asian Marketing Conference (AMC) 2012. The event will be
help the technology entrepre-
held on July 19 to 20 at the Rizal Ballroom of Makati Shangri-La Hotel in Makati
neurship component of this P1-
million youth challenge. City. The conference will gather some of the best marketing minds in Asia and the
For more information, visit world, who will present case studies and the latest global marketing trends that
www.projectpagsulong.ph. will benefit local marketing professionals. In photo (from left) are Richard Yang,
director, National Marketing Conference, PMA; Donald Lim, overall chairperson,
Asian MarketingConference 2012; GregArmshaw, chief technology catalyst, McCann
Worldgroup Singapore; Gwenn Albarracin, PMA president; and Alex Flores, PMA
executive vice-president.
with a sweet sauce that Filipinos
love. That’s why we have this slo-
gan: ‘Sauce Pa Lang, Ulam Na.’
That’s how delectable our food
is,” Mr. Reyes said.
While the restaurant has ex-
panded its menu to include other
Filipino dishes, its signature
Beef Tapa or “Tapsilog” remains
the star and the bestseller to
this day. “We give people real,
freshly-cooked food at the time
they need it. We are open 24/7,
everyday for dine-in, delivery
GIDCI donates to GMA Kapuso Foundation
and take out. We are accessible
Globe International Distributor Center Inc. (GIDCI), the exclusive distributor of house-
and affordable and we strive to
holdbrands Faultless Quality Locksets andPr1merowater-basedelastomericsealant,
walk the ‘extra mile’ in terms of
recently inkeda deal withthe GMAKapusoFoundationtosponsor locksets tomore or
service,” he added.
less 200 units housing for families affected by Typhoon Sendong in 2011. As a spon-
For more information, visit
sor, GIDCI will be donating around 400 Commercial Grade Faultless locksets which
www.rufos.com.ph.
will be used for the Kapuso Foundation’s Housing project called “Kapuso” Village in
Iligan City. In photo (from left) are Carmela Tiangco, executive vice-president and
chief operatingofficer, GMAKapusoFoundation, Inc.; andSheela Bizarra, marketing
officer, Globe International Distributor Center Inc.
Prior to her new appointment,
she spent 11 years at Weber Shand-
wick’s sister agency DraftFCB as
senior vice-president and new busi-
ness division head, and has previ-
ously worked at J. Walter Thompson
and Lintas Manila. “A complex and
growing market like the Philippines
demands local experienced leader-
ship, and that’s why I am excited
about bringing Diana on board,” said
Baxter Jolly, vice-chairman of Weber
Shandwick, Asia Pacific. “The Manila Filipino students win in Intel science fair
office is gearing up for more business
Julian Paolo Biyo, Paul Caesar Flores and Hazel Anne Hernandez from the Philip-
opportunities in brand PR, corporate
pine Science High School - Western Visayas Campus represented the country at the
reputation and crisis management
— all areas in which Diana’s expertise recently concluded Intel International Science and Engineering Fair. The students’
will prove a tremendous boon to project on coral assemblage establishment andartificial reef enhancement through
both our firm and our clients.”
 coral transplantation won fourth place grand award in the environmental sciences
category. In photo (from left) are Lolita Andrada, director, Bureau of Secondary
Education; Ricky Banaag, country manager, Intel Philippines; Julian Paolo Biyo and
Paul Caesar Flores, ISEF 2012 delegates; Secretary Armin Luistro, Department of
Education; andYvonne Flores, corporate affairs manager, Intel Philippines.

REUTERS
Massive
rock rolls
into LA museum art installation
LOS ANGELES — The 340-ton gran-
ite rock that became a star during its
slow sojourn across California roads
in March took up residence at the Los
Angeles County Museum of Art on
Sunday at an unveiling that included
an appearance by the reclusive artist
who conceived the project.
Levitated Mass, the well-traveled
boulder at the center of artist Mi-
chael Heizer’s new art work, drew
the admiration of Museum Director
Michael Govan, Museum Board Co-
Chair Terry Semel, Mayor Antonio
Villaraigosa and other local dignitar-
ies at a ribbon-cutting.
Smile, you’re on Yoko Ono’s new app
TORONTO — In the 1960s Yoko Ono
set out to create a film that would
include the smiling face of every
person in the world. Now, nearly five
decades later, the project has come to
life as an app.
The #smilesfilm, a new iPhone app,
is the digital manifestation of Ono’s
long-envisioned project. The app al-
lows people around the world to view
and upload snapshots of smiling faces.
It is also part of a global piece of her
artwork, a changing collection of pho-
tos which reflect Ono’s original vision
of connecting people across the world.
“It is the simplest thing to make
yourself healthy and make others feel
good,” the artist, peace activist and the
widow of John Lennon, said about
smiling.
The app features three sections
— dream, watch and smile. Users can
look at recently uploaded snapshots
geographically on a map, view them
in a moving slideshow chronologically
A crowd of people
attends the opening of
Levitated Mass, artist
Michael Heizer’s art
work which features a
340-ton rock.
“Art is made to memorialize time,”
Heizer, making a surprise appearance,
told Reuters. “A culture is known by its
art, not by its science.”
After opening remarks, the com-
mittee led hundreds of art lovers
through the 456-foot-long (140 me-
ters) groove that runs beneath the
21-foot-high (6.4 meters) boulder in
the museum’s north lawn.
“It does make the impossible possi-
ble,” Govan told the crowd. “As Michael
said to me once, when do you ever get
to see the bottom of sculpture?”
The stone made its 170 km journey
over 11 days in March, inching nightly
and take snapshots of their own smiling
faces, which are collated into the app
and placed on a map based on where
the photo was taken.
Since June 1 more than 3,300 pho-
tos have been added to the app, which is
also available online as a website.
The #smilesfilm isn’t the first time
that Ono’s artwork has featured the
theme of smiling.
Her 1968 film No. 5, commonly
known as SMILE, featured Lennon in
the garden of his home in Weybridge,
England, as he looked into the camera,
shifting between a straight face and a
full-on smile. The film premiered at the
Chicago Film Festival in 1968.
Her 1971 piece A Box of Smile is
a conceptual artwork, consisting of
a small plastic box, which the viewer
opens to reveal a mirror.
Ono admitted it is not always easy
to smile.
“It was hard for me, too,” she said in
an e-mail interview. “After my husband
WEDNESDAY, JUNE 27, 2012 ARTS & LEISURE S2 / 7
on a massive heavy-duty trailer along
California highways at an average speed
of 11 kph. It rested in the middle of the
Stolen Rodin bust found in France
road by day, forcing the closure of some LYON, France — A bronze bust of Auguste Rodin
Buste d’Auguste Rodin,
traffic routes. by sculptor Camille Claudel has been found in an
antique shop near Lyon after it was stolen 13 years the French sculptor
The sojourn sparked celebrations
ago leading to the arrest of two men, police said. (1840-1917),
in neighborhoods along its route and
The 8 kg bust, which is valued at around €1 a 15 inch bronze
made headlines around the world.
million ($1.25 million), was discovered on Saturday by French
“Los Angeles is an automobile cul-
during a police investigation into a series of robber- sculptor
ture,” Heizer said. “What you saw was ies in the region. Camille
just the biggest automobile in town The relationship between the two sculptors is Claudel
going down that road.” considered to be one of the most artistically fruit- (1864-1943).
Project dates to 1968 ful and passionate turn-of-the-century love affairs.
Heizer, 67, has lived in a remote Rodin and Claudel made a number of sculptures
Nevada desert for the past 40 years, of each other.
carving City, a monumental landscape An antiques dealer was spotted loading his van
sculpture to rival Mount Rushmore, with a suspicious object and arrested on June 19 in
Montbrisson, 60 km east of Lyon.
out of the earth.
The object turned out to be the Rodin bust,
He conceived of Levitated Mass which was stolen in 1999 at the Gueret museum,
in 1968 when he found a similarly near Clermont Ferrand in central France.
shaped but smaller (120-ton) boulder The judicial investigation was opened by the
in Nevada, which he attempted to place Lyon public prosecutor to determine how the men
over a slot dug in a dry lake bed. The ef- got hold of the masterpiece. Police gave no details
fort, which broke the boom on a crane, of the second suspect who was arrested. — Reuters AFP
ended in failure.
After years of searching and pro- Germany mediates talks on sacred rock row with Venezuela
ducing subsequent landscape installa- BERLIN — The German government said Monday it was mediating talks for an “amicable” end to a row
tions such as Double Negative (1969- over the return of a rock considered sacred by an indigenous community in Venezuela from a Berlin park.
1970), two enormous trenches each 50 The foreign ministry said it had put forward proposals in discussions with the parties in the protracted
feet (15 meters) deep and 30 feet (60 dispute which had led to progress “in important factual issues” but that further talks were needed. The
feet) wide, with a combined span of dispute centres on a 30-ton rock that the indigenous Pemon people call Kueka (meaning grandmother),
1,500 feet (457 meters), on the eastern which they claim was given without their consent to a German artist 14 years ago by a former Venezu-
elan president. Last week the indigenous community in Venezuela staged a protest outside the German
edge of Mormon Mesa, Nevada, Heizer
embassy in Caracas to demand the rock be repatriated from its current spot as part of an outdoor art
found the perfect boulder for a second
exhibition in Berlin’s central Tiergarten park. — AFP
go at Levitated Mass.
“We knew it was going to attract
attention,” Heizer said, addressing the
media attention lavished on last win-
ONSTAGE
ter’s move, as well the well-attended JUAN ANTONIO LANUZA Mr. Lanuza is indisposed. He will resume writing his column shortly.
Sunday debut. “That’s not really the
art, as far as I’m concerned.”
The journey and installation of
the new artwork cost about $10 mil- SUDOKU PACIFIC
lion, causing some to question such Complete the grid so that every row, column and 3x3 box contains every digit from 1 to 9 inclusively.
profligacy during lean economic
times.
But Govan insisted that the funds,
which were raised through private
donations, created jobs for those who
moved the boulder, and predicted Levi-
tated Mass would draw tourist dollars
into the city, although there is no charge
for viewing the sculpture.
“It is a monument to our own time
and our own place and our own aspira-
tions as people,” said Govan. “Perhaps
it will be here millennia forward, to
communicate those feelings to future
civilizations.” — Reuters
CROSSWORD
BY
BYTHOMAS
THOMAS JOSEPH
JOSEPH
John Lennon passed away, I tried to
smile for my health.” 20 Yak it up 29 Complete
She suggested people just give it ACROSS 41 Ultimate 21 Take to court 30 Sports spot
1 Planted 42 Oxford features 24 Stiff 31 Pub game
a try. “Look at yourself in the mirror 6 Horn sound 25 Give life to 35 Easy gait
and force a smile. It is just awkward at 10 Sweet liqueur DOWN 27 Disencumber 36 Rum mixer
first. But after you keep trying it every 11 O’Neill work 1 Justice symbol 28 Declares 38 Hair goo
morning, one day you will start giving 12 Improvise 2 Lunch counter cry
13 Shred 3 Good fortune
your smile to your whole body… and 14 Headed out 4 Throw off
then giving your smile to people with 15 African-inspired 5 Cotillion girl
emotion.” dance 6 UK resident
The app, released last week, is avail- 16 Memorable period 7 Accept eagerly
17 Letter before psi 8 Entertain
able worldwide for iPhone. Photos can 18 Stock holder 9 Short putt
also be uploaded via Twitter and Ins- 19 Hospital workers 11 Watershed
tagram using the #smilesfilm hashtag. 22 Dessert fruit 15 Question of identity
The art project, which started as a 23 Mystique 17 Blue shade
26 Flourishes
Flickr group in 2009, originally con- 29 Smidgen
sisted of a set of images of smiling faces 32 Prevaricate
collected at photo booths at art exhibits 33 Drill need
in Tokyo, Berlin and New Delhi. 34 Gave an address
36 Deep sleep
It will be shown until Sept. 9 at the 37 Caesar’s land
Serpentine Gallery in London as part 38 Suggested
of the London 2012 Festival, where 39 Composer Bruckner
a photo booth will be available for 40 Upper crust
visitors. Photos collected in the app will
also be part of the exhibit. — Reuters
 8 / S2 ARTS & LEISURE
Out of the streets
and into the gallery
G
raffiti in the metro’s busy streets would at
best only get a passing glance from pass-
ersby. In fact, most would earn a disap-
proving frown.
Aside from crude hand-painted
or spray-painted tags, scattered
around the metropolis are more
sophisticated stencil graffiti, which
are usually repeated on walls or
lampposts as many times as street
artists possibly can manage. Stencil
graffiti is created through spraying
or rolling-on paint over paper or
cardboard cut-outs to create im-
ages that can easily be reproduced.
It sounds simple, but creating
art in any form requires skills.
And Frances Abrigo, who is one
of the many artists walking Metro
Manila streets with a stencil and
spray paint in hand, is a testament
to these skills.
He takes his favored art form
several notches up in his first solo
show, Subconscious Terrains, at Kan-
to Artists Run Space in Makati City.
Featured are seven quaint
and well-made stencil portraits
on canvas, as well as elaborately
reworked used spray cans.
“The exhibit allows people
to closely examine street art in a
more solemn and meditative man-
ner,” explained Philip A. Paraan,
space manager at Kanto Artists
Run Space.
The haunting portraits were
made by superimposing one elabo-
rate stenciled image over another,
creating precise contours of facial
features. Like mug shots or ID pic-
tures, the faces stare back at you in a
questioning but intriguing manner.
“Itong mga portrait ay pinag-
patong-patong na stencil [These
portraits were made through
multilayered stencils],” Mr. Abrigo
told BusinessWorld. “Yung iba dito
four layered o five layered [Some
ALICIA A. HERRERA EDITOR
By Antonio Siegfrid O. Alegado, Reporter
images used four to five layers],”
explaining that a stencil is placed
over the canvas and is spray paint-
ed, then a second stencil is put in
place and sprayed with a different
color, and so on.
The resulting portraits feature
deformed children and old people
in black, gray, silver, and at times
gold and red. These portraits,
Mr. Abrigo said, are his own
“interpretations” of photographs
referenced from Google.
Asked about his choice of
subjects, Mr. Abrigo said: “Parang
sila yung nakikita ko sa kalsada…
yung mga matatanda’t bata, nasa
kung saan-saan sila. [These are
like people I see in the streets.
The elderly and children, they are
everywhere.]”
“Yung mukha nila may kwento
e. Kwento ng paghihirap, pag-asa
‘tsaka kwento kung pa’no sila namu-
muhay [Their faces tell stories. Sto-
ries of hardships, of hope, and of
how they live their lives],” he said.
Mr. Abrigo’s works could easily
be considered pochoir — “a highly
refined technique of making fine
limited editions of stencil prints”
(Encyclopaedia Britannica) rather
that ordinary stencilling.
Mr. Abrigo’s finely made sten-
cils also fill the gallery walls,
showing the time-consuming and
insistent way they were created.
Viewers may be surprised
to learn that he is a high school
drop-out with no fine arts train-
ing. “Natuto lang ako mag-stencil
sa isang kurso namin nung high
school [I learned stenciling from STENCILLED FACES (clockwise from top): Five Years Old, Eighty
a subject I took in high school],” Years Old, Seventy Eight Years Old, stencil on canvas
said Mr. Abrigo.
ARTS & CULTURE
Group show in Baguio
Portrait of Baguio Artists as Culture Bearers, a group
show of Baguio artists, opens at the BenCab Mu-
seum’s Gallery Indigo today. The museum is located
at Km. 6 Asin Road, Tuba, Metro Baguio.
Film retrospective
THE Cultural Center of the Philippines (CCP) and
the Embassy of France presents Irma Vep Invades
CCP!, a retrospective of films by the acclaimed
French director Olivier Assayas, on June 28-30. Seven
of his films will be shown at the CCP Tanghalang
Manuel Conde (Dream Theater) namely: Cold Water
(June 28, 4 p.m.); Irma Vep (June 28, 7 p.m.); HHH:
A Portrait of Hou Hsiao-hsien (June 29, 4 p.m.); Les
Destinées sentimentales (June 29, 7 p.m.); Demonlover
(June 30, 1 p.m.); Clean (June 30, 4 p.m.); and Summer
Hours (June 30, 7 p.m.). Admission is free. Seating on
a first come-first serve basis. For details call the CCP
Film, Broadcast & New Media at 832-1125, locals
1704 and 1705.
Altro Mondo at Picasso
Exit Shangri-La, a group exhibition by Altro Mondo
at The Picasso Boutique Serviced Residences (119 L.
P. Leviste St., Salcedo Village, Makati City) is on view
until Aug. 18. On view are works by three young art-
ists — Paulo Catolos, Jomar Galutera, and Amer Mira.
New works by Leeroy New and Pancho Villanueva
are also on view along with the show. For details call
Altro Mondo at 501-3270 to 71.
Collaborative show
Digital Tagalog, a collaboration between Lani Mae-
stro and Poklong Anading will open at mo_space
at Bonifacio High Street, Taguig on June 30 and
run until July 29. Their installation sets the stage for
a communal composition generated from both
recorded sounds and the live sounds that inhabit
the space.
Genodepa at Alliance Française
Dream Women, a collection of coral stone sculp-
tures by Martin Genodepa, will be on view at the
Alliance Française de Manille Total Gallery from July
3 to 26. Dream Women, Genodepa’s 11th solo exhibit,
presents images of women who have exhibited the
conflicting traits of strength and weakness, fortitude
and acquiescence who are culled from myths, the
pantheon of saints and from memory. Alliance Fran-
çaise de Manille is located at 209 Nicanor Garcia St.,
Bel-Air 2, Makati City.
Tribute concert
MCO Foundation presents Hommages: A Tribute to
violinist Donnie Fernandez on July 5 at the University
of Makati. Fernandez was an exceptional violinist
WEDNESDAY, JUNE 27, 2012
Using the stenciling skills he
acquired, Mr. Abrigo roamed the
alleys of his province, Sorsogon,
and created street art.
“Nahabol ako ng pulis at tanod,
na-blotter na ‘ko dahil dito. Pag-
vavandal daw [I got chased by the
police and town guards, and was
charged with vandalizing,]” he said.
Mr. Abrigo’s parents sent him
to Manila in 2010 “to find some-
thing to do.” Here he continued
to make his stencil graffiti in the
streets, but also honed his skills by
“pagiging tambay (hanging out)”
at the University of the Philip-
pines’ (UP) College of Fine Arts,
where his brothers were studying.
“Sa mga taga-fine arts ako na-
tuto na i-improve yung gawa ko.
’Yung mga estudyante, teacher, pati
sina kuya lagi ko tinitignan kung
pano nila ginagawa ang trabaho nila.
[It is from those in the Fine Arts
school that I learned to improve my
work. I always observed the way the
students, teachers, even my older
brothers, worked],” Mr. Abrigo said.
He then started joining group
exhibits, mostly with UP Fine Arts
students. When invited to do a
solo show by Kanto Artists Run
Space, Mr. Abrigo grabbed at the
opportunity.
“Sa gallery, respetado ka at
tinitignan talaga yung gawa mo. Sa
kalsada kasi parang minamata lang
ng mga tao. [At the gallery, people
respect and really look at your art,
whereas in the streets they are
frowned upon,]” said Mr. Abrigo.
“Kapag na-invite ulit, siyempre
papayag ako. Pero habang wala
gagawa pa rin ako ng quality art
na abo’t kaya. [If invited to do
another show, I’d say yes. For now,
I’ll continue to create quality art
that’s affordable,]” he said, noting
that he takes pleasure in making
art that is accessible to the masses.
“He is good, really good. He’s
just not any street artist, but a fine
artist,” Mr. Paraan said, remind-
ing viewers to think twice before
frowning at the next piece of graf-
fiti we see.
Subconscious Terrains runs until
July 8 at Kanto Artists Run Space
at The Collective, 7274 Malugay St.,
San Antonio, Makati City. For details,
call 478-9470.
who died at a young age. She was an MCO friend,
and was featured once as soloist with the Manila
Chamber Orchestra. She was the concert master of
the US Army Orchestra at the time of her passing
last year. This tribute will feature her children who
are keeping their mother’s memory alive through
music: Catherine F. Belleza, violinist, Isabel F. Belleza,
flutist/pianist, and Therese F. Bonoan, cellist; with col-
laborating artists Robert P. Alcala, pianist; Ruggiero
Barbieri, conductor and the Makati String Ensemble.
This concert will be followed by Trio (The Best of
Chamber Music) on July 20 at the Filipinas Heritage
Library with pianist Mary Anne Espina, violinist Gina
Medina and cellist Wilfredo Pasamba. Finally, the
MCO Foundation’s The Young Artists’ Series 2012 has
the theme “Three prodigies now, tomorrow’s music
Masters.” It features consistent NAMCYA winner
violinist Christian Tan on July 12; soprano Elainne
Vibal on July 19; and another consistent NAMCYA
winner, flautist John Raymond Sarreal on July 26. All
three shows will be at the Filipinas Heritage Library.
Hommages will be opened to the public for free.
Tickets to the Young Artists’ Series concerts are P500;
and Trio tickets at P800 with discounts offered to
students, faculty and senior citizens. For details, call
750-0768 or 0920-954-0053.
Three at Silverlens
Opening on June 28 are Skyscapes by photogra-
pher and graphic designer Jay Yao (Jose Campos
III), Skinskin by Chati Coronel, and Red Fights Back by
Geraldine Javier. Silverlens is at 2320 Pasong Tamo
Extension, Yupangco Bldg. 2, Makati City.
A SCULPTURE by Martin Genodepa which will
be on view at Alliance Française de Manilla.

VOL. XXV, ISSUE 239 ISSN 0116-3930
BY GIDEON RACHMAN
Our obsession with Iran
obscures the bigger threat
It is funny what people choose to
worry about. The west is obsessed
with stopping Iran getting nuclear
weapons. By contrast, Pakistan’s
nuclear program is not much dis-
cussed. And yet, by any sensible
measure, Pakistani nukes are much
more worrying.
Start with the obvious: Pakistan
already has nuclear weapons – prob-
ably more than 100 of them – and is
thought to be increasing production.
Iran has still to assemble a single
nuclear weapon. The prospect of an
Iranian bomb is said to be unthinkably
dangerous because of the country’s
connections to terrorist groups, its
hostility to the west and Israel, the
risk it will spread nuclear technology
and the prospect of a regional arms
race. And yet, almost all these con-
siderations apply even more forcibly
to Pakistan.
Pakistan supplied nuclear tech-
nology to North Korea, Libya and Iran
itself. It came dangerously close to
nuclear conflict with India in 1999.
As for terrorism, Osama bin Laden
was actually living on Pakistani soil
for many years and the tribal areas
of Pakistan are still al-Qaeda’s most
important base.
Pakistan was also the launch pad
for the terrorist attacks in Mumbai in
2008, in which 164 people were killed.
Although Pakistan’s government con-
demned the attacks, there is strong
evidence that the terrorists had links
to Pakistani intelligence. If the Mumbai
attacks had been launched from Iran,
the west would be shouting about
“state-sponsored terrorism”.
With Pakistan, all you get is awk-
ward mumbling.
Of course, there are reasons for
this difference in treatment. Unlike
Iran, Pakistan is nominally an ally of the
US and receives billions in aid. General
Ashfaq Kayani, the chief of staff of the
Pakistani military, is a charming fellow
who once studied at Fort Leaven-
worth in the US. As senior Pakistanis
are swift to point out, many of their
soldiers have died fighting Islamist
militants.
But Pakistan has yet to come up
with a satisfactory explanation for the
fact that bin Laden was living just a
stone’s throw from a big Pakistani mili-
tary academy. The Pakistani reaction to
the raid that killed bin Laden was one
of anti-American outrage, rather than
self-criticism. A doctor who helped
the US track down bin Laden has just
been sentenced to decades in prison
in Pakistan.
In the aftermath of the bin Laden
raid, many in Pakistan speculate that
the US may be planning another
raid – this time to seize the country’s
nuclear deterrent. Partly in response
to that, Pakistan is believed to have
cranked up production of nuclear
weapons and fissile material, and to
have adopted a policy of moving its
nukes around more frequently, often
by road.
The threat of a nuclear weapon
“falling into the wrong hands” is ob-
In print and online
Tel : +632 535 9901
Fax : +632 535 9940
E-mail : editor@bworld.com.ph
Web site : www.bworldonline.com
Brought to you by In partnership with
BY ED CROOKS and KEITH FRAY
Declaration
of interdependence
America’s founding fatherS were typically wary of
overseas military commitments but enthusiastic about
international commerce. While modern US foreign policy
might have troubled them, they would have found its
economy much more cheering.
Interdependence, S3 / 2
WEDNESDAY, JUNE 27, 2012 • S3/ 1
Top honchos enjoy best views
at the PLDT ALPHA Corporate Suites
vious. Just as worrying is the rise of
For executives, corporate life can Offering the use of the corporate annual events are ref lective of
Islamist militancy within the ranks of be both exciting and exhausting. suites is just one of the many its efforts to promote work-life
the Pakistani military itself – a problem This is why respites from the fast ways in which PLDT ALPHA balance. “In the previous years,
that is acknowledged by the country’s
top brass.
pace of business, however brief, are Enterprise keeps to their mantra we’ve held t he ALPHA Track
While visitors to Iran often report always welcome. “Relat ionsh ips Fi rst ”. “O u r Day event where our customers
that the general public is well-dis- With this in mind, PLDT ALPHA customers may be top honchos – got to compete on actual races
posed towards the US, no visitor to
Pakistan can miss the country’s deep
Enterprise offers their customers a CEOs, CIOs and the like – who at the Clark Speedway,” shared
anti-Americanism. Episodes such as way to achieve work-life balance. At are very busy leading successful Hernandez. “The ALPHA Royale
the bin Laden raid and the repeated the PLDT ALPHA Corporate Suites compa nies, but t hey are a lso event, on the other hand, was a
US drone strikes on militants in Paki-
stan – which have indeed killed many in the Mall of Asia Arena, they can regular folks who need time away charity poker event that was well-
innocents – have plunged relations enjoy the most exciting shows and f rom t heir hectic schedu les,” attended and much appreciated by
between the US and Pakistan to a events in style and comfort. says PLDT Vice President and our customers.”
new low. As many as 69% of Pakistanis
say they regard America as an enemy. PLDT A LPH A Enter pr ise Corporate Business Group Head These affairs have enabled PLDT
Yet it is Iran’s non-existent nukes customers got to experience the Jov y Her na nde z . “ T h rou g h ALPHA Enterprise to not just build
that continue to obsess the west. Dip- suites during the recent concerts t he PLDT A LPHA Cor porate business relationships, but also
lomats have spent so long trying to
stop Iran that I get the impression they at the MOA Arena featuring Lady Suites, we enable them to have personal connections with their
no longer even ask themselves why it Gaga, New Kids on the Block and the that much-needed break from customers. “We see ourselves not
is such a high priority. Press them, and Backstreet Boys, Taylor Dane and their busy professional lives via just as their partners in building
you will get explanations about the
dangers of a Middle Eastern arms race Edwin McCain, and the OPM Icons. simple pleasures such as watching businesses,” noted Hernandez,
and Iran’s regional ambitions. From the PLDT ALPHA Corporate concerts, sporting events and other “but also their ardent supporters
Interestingly, few seem to take Suites, they had an amazing view of entertaining shows.” in achieving a balanced lifestyle
seriously the idea that Israel often
evokes – that Iran might actually com- these spectacular shows. PL DT A L PH A E nter pr i s e’s that is truly ALPHA.”
mit nuclear genocide.
Western concerns are valid. But, in
themselves, they do not seem compel-
ling enough to explain the desperate
focus on Iran. The main reason the
Iranian dossier is so urgent seems to
be the fear that Israel will soon attack
Iran’s nuclear facilities, provoking a
wider war.
American and European diplo-
mats are reluctant to put it quite that
directly, since this carries the uncom-
fortable implication that western
policy is driven by Israel. But when
people say “time is running out” over
Iran, it is the prospect of an Israeli at-
tack they are usually thinking about.
Most of those I know, in govern-
ment and outside, who have a close
knowledge of the Iranian nuclear
issue seem to believe that Israel is
likely to attack this summer. Last week,
I thought I had found a dissenter. But
he simply said: “Israel will wait until
September or October because the
weather is better and it’s closer to the
US elections.”
For Israel, it does make sense to
worry more about Iran than Pakistan.
Iran has missiles that could hit Israel.
Pakistan’s missiles do not have the
range; its nuclear doctrine is focused
PLDT ALPHA Enterprise supports
on India. But the terrorists based in
Pakistan are no friends of the Jewish
state. One of the targets they attacked
in Mumbai was a Jewish cultural
center.
Korean Chamber of Commerce annual membership meeting
In the end, the desperate effort
to stop the Iranian nuclear program – PLDT ALPHA Enterprise recently PPPC sharing its many projects Tagorda, Vice President for Luzon,
while living with Pakistani nukes – may
have a simple explanation. Pakistan
joined the Korean Chamber of and the forum providing guests PH I L KOFA ; Au ror a Q u i r ay,
already has nuclear weapons. Iran can Commerce Philippines (KCCP) with a briefing on the Philippine President, PHILKOFA; R hean
still be stopped. a s it held its a n nua l genera l economy. delos Reyes, PRO, PHILKOFA;
But next time somebody tells you
that Iranian nuclear weapons would
membership meeting at the Dusit Shown on photo are (front row Edward Eun-Gap Chang, President,
be an unparalleled and intolerable Thani Hotel in Makati City. The L-R): Jerry Sy, Relationship Manager, KCCP; Michelle Carreon, Office
threat to international security, you event was a venue for member PLDT ALPHA Enterprise; Kwan Manager, KCCP; (back row L-R):
might remember that we are already
living with a more alarming menace:
companies to update themselves Soo Lee, KCCP Past President Jin Su Kim, EVP for IT, Corea Inc.
the Pakistani bomb. — Financial Times on economic issues as well as & Adv iser; C oset te Ca n i lao, and IT Manager, KCCP; Eligio
get to know the new officers of Executive Director, PPPC;   Bernabe Ildefonso, Committee on Education
KCCP. This year’s meeting also Sanchez, VP-Mindanao, Philippine &Training, PHILKOFA; Aurora
featured presentations by Public- KOIC A Fel low s A s s o c i at ion Collantes, Vice President for NCR,
Private Partnership Center and (PHILKOFA); Teresita Puente, PHILKOFA; and Jae Jung Jang,
The Wallace Business Forum, with Treasurer, PHILKOFA;  Marlon KCCP Past President & Adviser.
advt

Interdependence
from S3 / 1
Over the past couple of de-
cades, the US has become sig-
nificantly more integrated into
the rest of the world economy.
That shift has brought great ben-
efits, in terms of US companies’
diversification and access to faster-
growing emerging economies, the
productivity gains brought about
by increased specialization, and
the spur to innovation created by
larger markets and greater compe-
tition. As Europe sinks deeper into
its crisis, however, and fears grow
about the slowdown in China
and other emerging economies,
America’s ties to the rest of the
world are coming to look like
restraints rather than supports.
The increased integration of
the world economy was a central
BY ANDREW JACK
In 2007, overweight consum-
ers became aware of a new
weight-loss drug they could
buy over the counter from
any pharmacist or even at the
supermarket.
The drug, called Alli, was
the result of a new commercial
strategy at GlaxoSmithKline. In
2005, it had bought the rights to
Xenical, rival Roche’s prescrip-
tion-only version, with plans to
market it directly to individuals
using its consumer marketing
expertise and altering the prod-
uct in line with a few regulator-
approved changes.
Now, as GSK struggles to
find a buyer for Alli, the deal is
viewed by many as a diversifica-
tion too far.
Alli was launched by GSK in
the US in 2007 with hopes that
it would broaden the reach of
its consumer business. Instead,
despite expansion into Europe
and beyond, it has met with
slumping demand and regula-
tory scrutiny, and spent more
than a year trying to offload
the drug.
Projected annual sales
were more than £1 billion, but
peaked at a little over £200 mil-
lion and last year generated just
£100 million.
“It was a problematic prod-
uct launched by GSK at an
inopportune time,” says Steve
factor in the synchronized global
downturn of 2007-2009. The
outlook for the US economy, the
world’s largest, is important for
every other country. But by the
same token the US is increas-
ingly dependent on the rest of
the world.
With US unemployment stub-
bornly high, the internationaliza-
tion of the US economy is also
becoming a central issue for
November’s presidential election.
President Barack Obama’s team
has been attacking Mitt Romney,
the Republican challenger, for
having “sent jobs overseas” while
working in private equity at Bain
Capital.
The US has traditionally been
seen as a relatively closed econ-
Slim pickings for a drug strategy
Brozak, head of industry analyst
WBB Securities.
GSK’s experience is a lesson
for drug developers seeking to ex-
pand into non-prescription health
products, and hoping to squeeze
additional sales by “switching”
medicines that were previously
available only on prescription
into products available directly to
consumers over the counter.
Roche, the Swiss pharmaceu-
tical group, first won regulatory
approval for Orlistat, which it
branded as Xenical, as a prescrip-
tion medicine in the late 1990s.
By limiting absorption of fat in
the body, it helped the obese to
reduce weight. But it also had two
problems, which have haunted the
product ever since: limited effi-
cacy; and “side effects” of diarrhea
and flatulence in users who did
not sufficiently limit their intake
of fatty food.
With the patent moving to-
wards expiry and disappointing
sales, one option was to seek regu-
latory approval to sell it without
a prescription. Such switching is
common for medicines treating
pain, heartburn and allergies,
provided regulators are satisfied
the product is safe to use without
medical supervision – and nor-
mally required for only a short
period.
The price the company re-
ceives may be lower than when
omy, but that is much less true
today.
Since the late 20th century, it
has become significantly more
open on just about every measure.
When globalization became a hot
topic in the 1990s, it often seemed
that it was affecting only poor
countries and former members of
the Soviet bloc. However, the US
was globalizing at the same time.
The simplest measure of eco-
nomic openness – exports and im-
ports as a share of gross domestic
product – is about 30%, in line
with the global average, having
risen about 10 percentage points
over the past two decades.
That is not only because of a
widening of the trade deficit: ex-
ports as well as imports have risen.
the product is sold as a prescrip-
tion drug, but switching allows
the developer to generate sales
after the patent has expired and
the medicine has become open
to cut-price generic competition.
The company can build on its ex-
pertise and infrastructure, develop
new sales efforts thanks to the
different restrictions on advertis-
ing, and continue to exploit the
brand name, over which it retains
exclusivity.
Laura Mahecha, health care
specialist at consultancy Kline
Group, estimates that more than
a quarter of over-the-counter
sales in the US are such switched
products, some of which have
maintained market share over
decades.
“There is no doubt they gener-
ate a lot of growth,” she says. “Advil
[ibuprofen] switched in 1984, and
still brings in $300-400 million a
year” for Pfizer.
Like several other companies,
Pfizer has set up its own con-
sumer health division to handle
switches. Others, meanwhile,
have used partnerships. Novartis,
for example, sells the heartburn
drug Prevasid over the counter,
on behalf of its developer Takeda.
One reason Sanofi bought
Chattem, a US consumer health
company, in 2009 was to acquire
the expertise to switch its anti-
allergy drug Allegra.
Some of the measures of
financial integration are even
more striking. Bank lending, the
ownership of US securities, and
corporate assets and earnings, are
now all significantly more inter-
national than they were.
Foreign direct investment and
takeovers, both into and out, of
the US have boomed. There has
also been an immigration increase
to match the great influx of people
in the 1860s-1920s.
Energy is one area where the
US has managed to disengage
itself slightly from the rest of
the world, as the boom in shale
gas and oil production has cut
imports.
Yet even here, the US remains
tied to the rest of the world econ-
Roche had gone in another
direction. Having sold its con-
sumer health arm in 2004, it was
increasingly focusing on specialist
hospital medicines, rather than
drugs prescribed in primary care.
It also became mired in contro-
versy after practitioners without
proper medical qualifications in
diet clinics illegally “prescribed”
Xenical, which ultimately gener-
ated disciplinary action against it.
GSK, by contrast, looked well-
suited to take over the drug as
it had an established consumer
health care division that oversaw
selling everything from Senso-
dyne toothpaste to Ribena drinks.
It also had previous success in
switching, notably with Nicorette,
its medicine to help smokers quit.
In investor presentations, GSK
pointed to steep increases in obe-
sity and the fact that consumers
spent billions of dollars a year on
weight-loss products. Alli would
stand out as the only switched
weight-loss drug.
The move was innovative in
several ways. It was the first switch
authorized across the EU through
a centralized procedure of the EU
medicines authority. On acquiring
Xenical from Roche for $100 mil-
lion, GSK rebranded it globally
to signal a distinction with the
prescription drug.
By getting approval for Alli at
60 mg, half the prescribed dose,
omy and is likely to become more
so. Oil is a global market, so the
price is set principally by the in-
ternational balance of supply and
demand.
There is a 12% discount for
US domestic crude compared
to international prices, because
shortages of pipeline capacity cre-
ated bottlenecks, but that is likely
to close over time.
As the economic ties between
the US and the rest of the world
tighten, the consequences are
complex and difficult to disen-
tangle. Economies that trade more
with each other are more likely to
move into recession and recovery
together, but some of the implica-
tions of capital market integration
may work the other way. If a slow-
GSK executives pinned their hopes
on it combining sufficient efficacy
with enough of a reduction in
unpleasant side effects. It was
packaged in an eye-catching box
displayed on elaborate stands in
pharmacies. GSK spent more than
$150 million in the first year alone
on US television advertising, and
initially sales were strong.
“It’s natural for people to
want to believe in a miracle pill
that helps them lose weight. This
coupled with Alli being the first
regulatory approved weight-loss
medication to go over the counter,
created significant expectation,”
says Kerry O’Callaghan, former
global brand leader for Alli.
“To manage this, we wanted to
communicate that Alli only works
when coupled with a healthy
lifestyle.”
The company backed the drug
and the message with Web sites,
online blogs, a recipe book and
social media.
But GSK failed to target sales
outlets in a way that would have
both maintained premium pric-
ing and attracted customers to
specialist stores. Instead, Alli was
quickly and widely released into
supermarkets’ in-house pharma-
cies.
The result was too much dis-
counting and not enough in-
formed advice being offered to
consumers.
2 / S3 • WEDNESDAY, JUNE 27, 2012
down in Europe or Asia encour-
ages capital to flow into the US, for
example, it could help to support
American economic growth.
On balance, greater economic
integration seems to increase the
synchronization of countries’
economic cycles. The latest evi-
dence from the US, including the
weakness of the stock market over
the past three months, faltering
manufacturing output, and a dip
in exports in April, may be early
warning signs of the impact of the
latest problems in Europe and Asia.
In a turbulent world, the possi-
bility of US economic self-reliance
is a comforting thought for many
Americans. But it looks increas-
ingly unlikely to be viable. — Fi-
nancial Times
Another setback arose
when consumer groups in Ire-
land found Alli was often sold
with little checking that the
customer was in the regulator-
approved customer group of
those aged over 18 with a body
mass index above 28. Leading
regulators began to scrutinize
claims of side effects, although
they held back from withdraw-
ing its over-the-counter status.
But it was the product’s
inherent limitations that were
the greatest challenge. With an
estimated 5% weight reduc-
tion on average for consumers
compared with 3% for those
on a weight-loss diet alone,
disappointment soon set in.
The nuanced message on the
need for lifestyle changes – and
that the drug was not a direct
alternative to dieting – was
hard to explain.
If promoting Alli now, says
Ms. O’Callaghan: “We would be
much more conversational and
focus on health care profes-
sionals and digital media rather
than ... on TV.”
That will be just one chal-
lenge for any acquirer of Alli.
Another, as Mr. Brozak argues,
will be to integrate the product
into a broader range of weight-
loss products and approaches
offering a better chance of suc-
cess. — Financial Times
WEDNESDAY, JUNE 27, 2012
BRIEFS
Woman director named
SAN FRANCISCO — Facebook, Inc.
named Chief Operating Officer Sheryl
Sandberg a director yesterday, elevat-
ing the first woman to a board that
includes seven men. For years one of
the most vocal critics of the gender
imbalance in Silicon Valley's executive
ranks, Ms. Sandberg, 42, joined Face-
book in 2008 and played a central role
in guiding the social networking com-
pany to its $16-billion IPO in May. Her
promotion comes as Facebook seeks
to cultivate a more mature image as
opposed to the college dorm-room
startup reputation that has dogged
the company since Harvard dropout
Mark Zuckerberg founded it in 2004.
Still, even after Facebook elevated Ms.
Sandberg yesterday, the composition
of its board remains a continuing
point of scrutiny for a young company
that has touched countless industries
and boasts close to a billion users from
every corner of the world. — Reuters
Microsoft buys Yammer
SEATTLE — Microsoft Corp. agreed to
buy online social network firm Yam-
mer, Inc. for $1.2 billion in cash, which
will allow the software company to
offer a service like Facebook, Inc.’s to
corporate customers. Talk of a deal
had circulated earlier this month, but
the two companies only confirmed
an agreement on Monday. Four-year-
old Yammer, which has five million
users of its private, in-company social
networks, helps companies’ internal
communications and collaboration
by allowing employees to form groups
and interact with each other freely.
Companies such as Ford Motor Co.,
Supervalu and Deloitte are custom-
ers. The 400-employee firm will keep
its headquarters in San Francisco but
will become part of Microsoft’s Office
unit under Kurt DelBene in Seattle.
Yammer will still be led by current CEO
David Sacks, a former PayPal executive.
— Reuters
Genting to boost shares
MELBOURNE — Malaysian gaming
group Genting Group has applied
to Australian authorities to boost its
stake in Australian casino operator
Echo Entertainment, a source said,
potentially pitting it against billionaire
James Packer. Genting confirmed last
week it had increased its stake in Echo
to almost 10%, putting it on par with
Packer who is seeking to gain control
of the $3-billion Australian casino
operator, which owns Sydney’s only
casino. Mr. Packer is hoping to attract
more Asian high-rollers to Sydney and
Genting may want to set up its own
VIP room there, analysts have said. Un-
der Echo’s constitution, no single party
can hold more than 10% and needs
regulatory approval to go further. The
source who is familiar with the matter
declined to be named because the
matter is confidential. The New South
Wales Liquor and Gaming Authority
and a spokesperson for Genting both
declined to comment. — Reuters
L inn fi les for $ 1 -B IP O
NEW YORK — Linn Co. LLC, an affiliate
of oil and gas company Linn Energy
LLC, filed with US regulators yesterday
to raise up to $1 billion in an initial
public offering (IPO) of common stock.
The Texas-based company told the
US Securities and Exchange Commis-
sion in a preliminary prospectus that
Barclays was underwriting the IPO. The
filing did not reveal how many shares
the company planned to sell or their
expected price. The company intends
to list its common stock on the Nasdaq
Global Select Market under the sym-
bol “LNCO.” The amount of money a
company says it plans to raise in its first
IPO filings is used to calculate registra-
tion fees. The final size of the IPO could
be different. — Reuters
Firm eyes Fortescue stak e
MELBOURNE — Fortescue Metals
Group founder Twiggy Forrest is seek-
ing to buy 60 million shares or 1.9% in
the iron-ore miner for about A$294 mil-
lion ($294 million), dealers said adding
the book build by Morgan Stanley is yet
to be completed. Morgan Stanley was
bidding for 60 million shares at around
A$4.90 a share on an all-or-nothing
basis, meaning if the full order was
not met, no shares would be bought.
Fortescue shares closed on Monday at
A$4.85. One dealer said a special trade
for one million shares was put through
at A$4.92 on Tuesday morning, but that
was not part of the bundle Morgan
Stanley was seeking. A spokeswoman
for Fortescue declined comment as
did a spokesman for Morgan Stanley.
Separately Forrest, who owns 31.6%
in Fortescue according to Thomson
Reuters data, disclosed in a filing that
he had picked up 12.78 million shares
in the open market between June 20
and June 25. Fortescue, valued by the
market at A$15.1 billion, fell 0.5% to
$4.825 by 0102 GMT. The broader mar-
ket was down 0.3%. — Reuters
GM’s female manufacturing chief faces big truck test
DETROIT — General Motors Co.
(GM) sells its big, brawny trucks
for their torque, testosterone
and hefty profits, so when the US
automaker wanted to introduce
the next models, they turned to
one of the toughest executives
in its ranks.
Global Manufacturing Chief
Diana Tremblay is one of the
highest-ranking women in the
automotive industry. Through-
out her 35-year career at GM, she
has made her mark in what were
regarded as male domains, from
directing foundry workers to star-
ing down union labor negotiators.
Now she faces an even more
critical task for the world’s larg-
est automaker — ensuring the
smooth 2013 introduction of the
remodeled full-size pickup trucks
and SUVs, GM’s high-profile
equivalent of a new Apple iPhone.
While executives at GM touted
its strength in overseas markets
like China after the Detroit com-
pany’s bankruptcy and $50-billion
US taxpayer bailout, it turns out
the profit engine has instead been
North America. And nothing is
more important to that success
than the second-quarter introduc-
tion next year of the big Chevrolet
Silverado and GMC Sierra pickups
and related SUVs, which analysts
Rinehart may sell Fairfax Ghosn remains Japan’s top-paid CEO
stake, shares at record low
MELBOURNE — Australia’s rich-
est woman, mining magnate Gina
Rinehart, has threatened to dump
her strategic stake in Fairfax Me-
dia if she doesn’t win editorial
influence, prompting a 6% slide in
the newspaper publisher’s shares
to a record low yesterday.
Ms. Rinehart’s aggressive push
into media, including a 10% stake
in TV broadcaster Ten Network,
has helped stoke the biggest shake-
up in the industry in decades, with
Fairfax and rival News Corp. last
week announcing overhauls of
their newspapers, massive job cuts
and expansions online.
Ms. Rinehart, who only last
week lifted her stake in the pub-
lisher of some of the country’s
leading broadsheets to 18.7%
from 13%, is seeking up to three
board seats.
Her company Hancock Pros-
pecting said in an e-mail state-
ment to the Australian Broadcast-
ing Corp. (ABC) that was placed
on the ABC Web site that she had
hoped to be considered as a “white
knight” to help rescue the strug-
gling newspaper empire.
“Unless director positions are
offered without unsuitable con-
ditions, Mrs. Rinehart is unable
to assist Fairfax at this time,” the
statement said.
In addition to the three board
seats, Ms. Rinehart, a critic of
Australia’s Labor government and
its controversial mining tax, has
sought influence over the news-
paper’s editorial direction and
the right to hire and fire editors,
newspaper reports have said.
Fairfax shares slid to a record
low of A$0.53 in early trade, valu-
NEW YORK — Quest Software,
Inc. has received an improved
bid from Dell, Inc. to buy the
maker of enterprise management
software for about $2.32 billion,
a source close to the matter said
yesterday.
Two bidders have recently been
competing to buy Quest: a buyout
group led by private investment
firm Insight Venture Partners, and
an undisclosed bidder.
Yesterday, a source close to
the matter told Reuters that the
mystery bidder was actually Dell,
the no. 2 US PC maker. Quest
disclosed yesterday that it had re-
ceived an improved bid of $27.50
per share in cash from the mystery
bidder, but did not reveal the bid-
der’s identity.
Reuters reported on May 25
that Dell planned to offer $23
to $26 per share to buy Quest.
The source who spoke to Reuters
on Monday requested anonym-
FRANCISCO P. BALTAZAR EDITOR
say generate profits of $12,000 to
$14,000 per vehicle.
The “military precision” of the
changeover for the truck platform
dubbed K2XX has impressed Ms.
Tremblay’s boss, US Navy veteran
and GM Chief Executive Officer
Dan Akerson. “She’s small in
physical stature, but she’s like a pit
bull,” he said.
But the 5-foot-2 Ms. Tremblay
faces a far different task than she
would have before GM filed for
bankruptcy in 2009. Instead of
leading the changeover at seven
North American plants that used to
make the big GM vehicles, her team
now must do the job with four.
It is a somewhat welcome prob-
lem, though, for an executive who
during the bankruptcy helped ne-
gotiate key labor deals while work-
ing to shore up employee morale.
While new small cars like the
Chevy Cruze have garnered posi-
tive reviews, the big pickups and
SUVs — Chevy Tahoe and Sub-
urban, GMC Yukon and Cadillac
Escalade — remain top draws at
dealerships. Their combined US
sales rose 11% last year to more
than 799,000 vehicles.
And even though they are the
oldest truck models on the market,
GM pickups still ranked no. 2 in all
US vehicle sales last year, behind
ing the company at A$1.2 billion
($1.2 billion), or about half its
value from a year ago.
Asia-Pacific region’s richest
woman with a fortune estimated
by Forbes at $18 billion already
has a board seat on Ten, where she
recently spent A$20 million ($20
million) to take up her entitlement
in a capital raising, holding her
stake at 10%.
Ms. Rinehart, whose wealth
stems from her stakes in iron ore
and coal lodes, has been battling
with three of her four children
over control over the family trust,
and in the same statement blamed
the legal fight for holding up plans
for her Roy Hill iron ore mine in
Western Australia.
Hancock Prospecting sold a
30% stake in Roy Hill to Asian
companies led by South Korean
steel maker POSCO and Japan’s
Marubeni Corp., earlier this year
to help fund the project.
Hancock said the court fight
between Ms. Rinehart and her
children delayed the sell down of
the Roy Hill stakes, which in turn
slowed down debt raising for the
A$7-billion project, making it
more challenging to secure the
financing in the current uncertain
environment.
That has delayed develop-
ment of the mine, which had
been due to start shipping ore
in 2014.
Hancock said there has been
“substantial interest” from Aus-
tralia’s big banks, international
banks and some export credit
agencies to back the project, and
it is trying to line up the financing
this year. — Reuters
Dell bids $2.32B for Quest Software
ity because the takeover talks are
private.
Dell declined to comment yes-
terday, and a Quest representative
was not immediately available for
comment.
Major tech companies have
often preferred to keep their
identities private when bidding
wars heat up. This helps prevent
the bidder from feeling compelled
to overpay and also spares it the
public embarrassment of an un-
successful takeover attempt.
One of the last public battles
occurred when Dell fiercely com-
peted against Hewlett-Packard Co.
(HP) for data storage company
3Par, Inc. in 2010.
Dell spurred that fight with
an $18-a-share bid, but HP ended
up buying the company for $33
a share.
only Ford Motor Co.’s F-150 truck.
Trucks and SUVs account for
about 60% of GM’s North Ameri-
can profit, analysts said.
Citi analyst Itay Michaeli esti-
mates the new trucks could bring
GM more than $1 billion in ad-
ditional operating earnings in 2013
and 2014. That kind of money leads
to jockeying, especially among US
automakers, for bragging rights
about which has the toughest truck
with the most towing capacity or
highest fuel-efficiency.
GM ran an ad during the broad-
cast of this year’s NFL Super Bowl
that depicts an apocalyptic scene
in which Silverado owners escape
death and make it to a pre-arranged
meeting point in their trucks while
a friend who drives a Ford does not.
GM has told analysts and in-
vestors the magnitude of product
advancements in the new trucks
will be as large as the last redesign
in 2006, which helped the auto-
maker gain market share.
GM North American Chief
Mark Reuss told Reuters the
launch remained on track and that
the trucks would be competitive
with rival offerings.
Ms. Tremblay, who speaks in a
low, measured voice that has man-
agers and factory workers leaning
in to hear her, may be a GM insider,
YOKOHAMA, Japan — Carlos
Ghosn, chief executive of Nissan
Motor Co., told shareholders
yesterday he was paid a salary
and bonus of ¥987 million ($12.5
million) for the past fiscal year, a
package that makes him Japan’s
highest-paid executive.
Mr. Ghosn has led Nissan since
2001 and steered the automaker
through a turbulent 2011 that saw
it bounce back faster than its do-
mestic rivals Toyota Motor Corp.
and Honda Motor Co. from dis-
ruptions caused by the March 2011
earthquake and tsunami in Japan.
Although Mr. Ghosn’s 0.5%
pay rise for the past year put him
just short of becoming the first
CEO of a Japanese company to be
paid more than ¥1 billion, inves-
tors have been far more concerned
with his tenure than the terms of
his compensation.
Nissan has justified the higher
pay for Mr. Ghosn and other
Nissan executives by saying they
should be compared to compen-
sation packages for CEOs at other
big, global industrial companies
including Ford Motor Co. and
US trade panel to revisit ruling vs Apple
NEW YORK — A US trade panel
said yesterday it would revisit
an initial ruling that Apple, Inc.
infringed one of four patents as-
serted by Motorola Mobility, now
a Google, Inc. unit.
The smartphone industry has
seen dozens of lawsuits on several
continents. The legal challenges
are a proxy for the larger fight
for market share between Apple
and companies that make smart-
phones that use Google, Inc.’s
Android software.
Dell’s latest offer for Quest beats
an earlier bid of nearly $2.17 billion
or $25.75 a share from the Insight
Venture Partners buyout group
which includes Vector Capital.
Shares of Quest were up 5.3%
at $27.60 on Monday afternoon
on the Nasdaq, suggesting that
investors expect a counter-offer
to emerge. Dell shares were down
1.9% at $11.97.
Je f f e r i e s a n a l y s t Aa ro n
Schwartz wrote in a note on
Monday that the flexibility of the
buyout group is limited at and be-
yond the $27.50 to $28.00 level. An
amended bid would require In-
sight and Vector to increase their
equity commitments and change
the debt financing structure.
JPMorgan Chase & Co., RBC
Capital Markets and Barclays
are currently providing approxi-
WORLD BUSINESS
but as a woman executive in a part
of an industry dominated by men,
she also is an outsider.
Ms. Tremblay’s career was
forged in the foundries of Defi-
ance, Ohio, where she supervised
men whose job was swinging
sledge hammers to knock excess
metal off auto castings.
Family history, however, set
her path earlier, as her grand-
father spent his entire career
as an hourly employee at GM’s
now-idled Janesville, Wisconsin
assembly plant. Her father was the
first in the family to go to college,
graduating from Flint, Michigan’s
Kettering University, a training
ground for many GM managers.
Her father rose to head main-
tenance at GM’s Lordstown, Ohio
assembly plant, which Ms. Trem-
blay sometimes visited on week-
ends. As a child, she would also
listen to his work stories.
Ms. Tremblay, who mostly
drives a Chevy Tahoe SUV and
uses her Pontiac Solstice sports
car for special occasions, rose to
become head of labor relations
in North America in 2006. A year
later, she helped negotiate the
watershed VEBA deal with the
United Auto Workers union that
shifted GM’s retiree health care
liabilities off its balance sheet.
Volkswagen AG, rather than the
lower pay for Japanese CEOs who
tend to have come up through the
ranks over a career.
The disclosed compensation
for Mr. Ghosn does not include
stock options he was granted in
the Japanese automaker. Those
will be disclosed later this week, a
spokesman said.
The tally also does not include
his compensation as head of Nis-
san’s alliance partner, Renault SA.
Nissan said its board had
weighed cash compensation for
Mr. Ghosn against pay for CEOs
at other major industrial compa-
nies with global operations based
on advice from consulting firm
Towers Watson.
Nissan said the average CEO
pay at the industrial companies
it had used as a benchmark was
$16.1 million, while the average
CEO pay for global automakers
was $17.5 million.
That average included the
$29 million paid to Ford Chief
Executive Alan Mulally and the
$23 million paid to VW’s Martin
Winterkorn.
International Trade Commis-
sion (ITC) Judge Thomas Pender
had said in a preliminary ruling
that Apple infringed on a patent
for eliminating noise and other
interference during voice and data
transmissions.
Motorola Mobility had origi-
nally accused Apple of disre-
garding three other patents —
including one for touchscreen
technology — but the ITC judge
found that the company infringed
just one.
mately $1.2 billion for the joint
bid from Insight and Vector.
Dell has been actively snap-
ping up companies as it tries to
diversify away from personal com-
puters, a market where growth is
decelerating as Apple, Inc.’s iPad
and other mobile devices pull
consumers away.
Dell executives have said they
view software and services as a key
growth area.
When the PC maker an-
nounced its acquisition of net-
work security provider SonicWall
in March, a senior Dell executive
vowed that more such deals were
in the pipeline.
On-again, off-again talks be-
tween Dell and Quest had broken
off last month, sources have said.
Dell has yet to publicly acknowl-
edge any interest in buying Quest.
S3 / 3
Walking the assembly line at
the Wentzville plant outside St.
Louis earlier this year, Ms. Trem-
blay recalled the long hours. “If
my husband and I were going any-
where, he would drive because I’d
just fall asleep,” she said. “Anytime
I sat down, I would just doze off.”
Her adaptability comes in
handy in her current job, which
she took on in 2009, as workers
at the plants under her care learn
to adjust to changing on the fly.
Instead of shutting down paint
shops for two weeks, changes must
happen while the assembly line is
running.
In Fairfax, Kansas, for in-
stance, employees replaced 1.3
miles of conveyor belts a section
at a time last year so as not to shut
down a busy plant that builds the
Chevy Malibu and Buick LaCrosse
mid-sized cars. Now Ms. Trem-
blay’s team must basically pull off
a similar trick on a larger scale,
putting the tooling in place for the
new full-size trucks while mini-
mizing down time to maintain
production of current models.
It is all part of a bigger effort
for Ms. Tremblay and executives
like her, who came up through a
system deemed too bureaucratic,
to mold GM into a leaner, faster-
moving company. — Reuters
Mr. Ghosn made another €1.2
million ($1.7 million) for heading
Renault in 2010. A comparable
number for 2011 was not imme-
diately available.
Mr. Ghosn’s pay at Nissan has
topped that of his counterparts at
Toyota and Honda by a wide mar-
gin. Toyota President Akio Toyoda
received ¥136 million ($1.71
million) for the past fiscal year,
unchanged from a year earlier.
In another point of compari-
son, Mr. Ghosn’s pay topped the
total compensation for the 21 most
senior executives at Sony Corp.,
another Japanese company that
had been headed by a foreign CEO.
Sony has asked its sharehold-
ers to approve payments of just
over $10 million for its top execu-
tives including newly-appointed
Chief Executive Kazuo Hirai, who
took over from Howard Stringer.
Mr. Ghosn, 58, told Reuters on
Friday that he was not planning to
step down from his post anytime
soon, following a Bloomberg re-
port that he would retire before
the automaker’s next business plan
starts in about five years. — Reuters
Motorola Mobility had asked
for the infringing devices to be
barred from importation into the
United States. The full commis-
sion is expected to issue a final
ruling in August.
The ITC, a US trade panel that
investigates patent infringement
involving imported goods, is a
popular venue for patent lawsuits
because it can bar the importation
of infringing products and be-
cause it issues decisions relatively
quickly. — Reuters
Quest said its board of direc-
tors has determined the new pro-
posal is superior to prior offers.
Last week, Quest agreed to
sell itself to Insight for $25.75 per
share, after the private investment
firm and new partner Vector Capi-
tal raised their bid.
The Insight-Vector cash offer
of $25.75 a share had topped a
$25.50 bid made by a “strategic
bidder” that Reuters later identi-
fied as Dell.
Insight has three days to match
rival offers, or adjust its own bid.
Aliso Viejo, California-based
Quest is led by Chief Executive
Vinny Smith, who has served as
either chairman or CEO for more
than a decade.
Any deal with Quest is fraught
with complications as roughly 34
percent of Quest is owned by Mr.
Smith, who took over in February
after Doug Garn stepped down,
citing poor health. — Reuters
 4 / S3 WORLD MARKETS
Wall St. sinks on Europe summit doubt
NEW YORK — US stocks fell
sharply on Monday, putting the
S&P 500 near break-even for June
so far, as investors saw little rea-
son to be optimistic about a Eu-
ropean Union summit this week.
Markets remain sensitive to
European headlines as the region’s
spiraling debt crisis could wreak
further havoc on a slowing global
economy.
Financial and energy stocks
were among the primary drags.
US crude futures lost 0.7% to
remain near the eight-month low
hit last week. News that Spain had
requested help for its struggling
banks pressured financial stocks.
The PHLX oil service sector
index dropped 3.4% and the KBW
bank index slumped 2.7%.
Expectations for the two-day
summit, which starts on Thursday,
are low after Germany resisted pres-
sure for common euro zone bonds
or a flexible use of Europe’s rescue
funds at a meeting of the region’s
four biggest economies last week.
Austerity measures pushed
forward by Germany have Greece
mired in a long recession. Inves-
tors worry Spain could be the
next domino to fall as Madrid’s
borrowing costs remain stub-
bornly high.
Among individual stocks,
Chesapeake fell 8.5% to $17.03 as
the worst performer on the bench-
mark S&P 500 index. Reuters re-
Crude steady as US storm
fears ease; eyes on Europe
NEW YORK — Oil steadied on
Monday as short-covering coun-
tered easing concerns that Tropi-
cal Storm Debby would batter US
production platforms in the Gulf
of Mexico and fading hopes that a
European summit would produce
a viable solution to the region’s
debt crisis.
Prices traded lower for most of
the US session as forecasts showed
Debby, the first named storm of
the 2012 Atlantic hurricane sea-
son to threaten the Gulf, turning
toward Florida and away from the
region that is home to roughly
20% of US oil production.
Oil companies had shut down
over 44% of oil production in
the Gulf on Monday after earlier
forecasts showed the storm head-
ing into the region, but producers
were already returning workers to
platforms and restoring output as
the threat waned. Debby’s threat
to the Gulf had pushed oil prices
up about 2% on Friday.
Investors were also cautious due
to worries that the European Union
summit this week would do little to
calm market anxiety about the euro
zone debt crisis. As expectations of
positive action from EU leaders have
wilted, the euro fell to a near two-
week low against the dollar.
Gold rises ahead of Euro meeting
NEW YORK — Gold rose on
Monday, breaking ranks with
the lower equities and crude oil
markets, as safe-haven buying was
promoted by growing uncertainty
ahead of a key European summit
and signs of a worsening debt
crisis in that region.
The metal spiked higher af-
ter being range-bound early on
Monday.
News of Cyprus becoming
the fifth euro zone countr y
needing rescue funds hours
after Spain formally requested
help for its banks, and Ger-
many’s opposition to issue euro
zone bonds to boost the single
currency also increased gold’s
investment appeal.
Gold’s rally was particularly
impressive on a day when Wall
Street dropped nearly 2% and
crude oil prices were down on
investors’ skepticism that an EU
summit this week would result
in action on the bloc’s crisis. A
grains rally due to dry weather
DOW JONES
30 days to 25 JUNE 2012
12900
12730
12560
12390
12220
12050
OPEN: 12,639.80 CLOSE: 12,502.66
HIGH: 12,639.87 NET: -138.12
LOW: 12,458.01 PREV: 12,640.78
DJ EURO STOXX
30 days to 25 JUNE 2012
2220
2188
2156
2124
2092
2060
OPEN: 2178.33 CLOSE: 2130.71
HIGH: 2178.33 NET: -56.1
LOW: 2124.98 PREV: 2186.81
ported that under the direction of
Chief Executive Aubrey McClen-
don, the company plotted with its
top competitor to suppress land
prices in one of America’s most
promising oil and gas locations.
The Dow Jones industrial av-
erage dropped 138.12 points, or
1.10%, to 12,502.66. The Stand-
ard & Poor’s 500 index lost 21.30
“Oil continues to be weighed
down by negative sentiment for
global growth ahead of a two-day
summit of EU leaders June 28,”
said Addison Armstrong, senior
director of market research at
Tradition Energy in Stamford,
Connecticut.
Short-covering late in the
day helped Brent crude settle up
slightly, by 3 cents at $91.01 a
barrel, off earlier lows of $89.60.
In late trading, the contract con-
tinued to gain, and was up 40 cents
at $91.38.
Also supportive for Brent was
a strike by Norwegian oil workers
which hit production at two Sta-
toil-operated oilfields, although
exports have not been affected.
US crude fell 55 cents to settle
at $79.21 a barrel, after hitting an
early high of $80.68.
Trading volumes were light,
with Brent down 18% from its
30-day average while US crude
was down 27%, according to
Reuters data. Brokers said con-
cerns about the European crisis
had pushed many players to the
sidelines.
US gasoline futures rose nearly
3% due to concerns about supplies
in the New York Harbor, the deliv-
ery point for the contract.
in the US Midwest underpinned
gold buying.
“It’s obviously a flight to qual-
ity, and gold is trading like a cur-
rency instead of a commodity. Un-
til gold breaks out of this trading
range, I suspect volume is going to
remain tepid,” said James Dailey,
portfolio manager of TEAM Fi-
nancial Asset Management.
Spot gold was up 0.8% at
$1,583.99 an ounce by 2:31 p.m.
EDT (1831 GMT).
Silver rose 2.7% to $27.57 an
ounce on pent-up demand after
the metal has recently underper-
formed gold.
Some investors covered their
bearish bets after gold posted a
3.5% decline last week on defla-
tion worries and a lack of aggres-
sive Federal Reserve stimulus.
On Friday, gold briefly crossed
into negative territory for 2012
due to frustration over the Federal
Reserve’s decision to lengthen its
“Operation Twist” program aimed
at lowering long-term interest
NASDAQ COMPOSITE
30 days to 25 JUNE 2012 30 days to 25 JUNE 2012
2940 5630
2900 5550
2860 5470
5390
2820
2780 5310
2740 5230
OPEN: 2863.89 CLOSE: 2836.16 OPEN: 5513.69 CLOSE: 5450.65
HIGH: 2863.89 NET: -56.26 HIGH: 5513.69 NET: -63.04
LOW: 2829.23 PREV: 2892.42 LOW: 5435.46 PREV: 5513.69
225-NIKKEI
30 days to 26 JUNE 2012 30 days to 26 JUNE 2012
8925 1,920
8790 1,890
8655 1,860
8520 1,830
8385 1,800
8250 1,770
OPEN: 8671.61 CLOSE: 8663.99 OPEN: 1818.51 CLOSE: 1817.81
HIGH: 8712.68 NET: -70.63 HIGH: 1826.66 NET: -7.57
LOW: 8619.36 PREV: 8734.62 LOW: 1814.46 PREV: 1825.38
points, or 1.60%, to 1,313.72. The
Nasdaq composite cndex declined
56.26 points, or 1.95%, to 2,836.16.
For the month, the Dow is up
0.88% while the S&P 500 is up
0.26%. The Nasdaq is up 0.31%.
Spain formally requested euro
zone rescue loans for up to €100
billion ($125 billion) to recapi-
talize its banks, saying the final
ASIA-DUBAI
(JUNE CONTRACT)
117
109
101
93
85
77
s DOLLARS PER BBL
J 30 days to June 25
June 19 20 21 22 25
$/bbl 93.89 94.27 90.70 89.23 89.70
Average (Jun 1-25) $95.18
Average (May 2-31) $107.33
Source: Reuters
US gasoline futures also gained
as cash prices in the US Gulf Coast
rose as a new cycle traded against
August RBOB futures rather than
July.
They also remain supported by
a potential extended shutdown of
half of the Motiva Enterprises LLC’s
325,000-barrels-per-day refinery
in Port Arthur, Texas, the largest in
the country, due to problems with
a newly built crude distillation unit.
Sovereign debt troubles as
well as shaky banks in some euro
zone nations, currently ample
supply from the Organization of
Petroleum Exporting Countries
(OPEC) and slowing growth in
the United States and China have
pressured oil futures due to wor-
ries about demand.
As of last week, Brent and US
crude have fallen more than 25%
rates instead of a new outright
bond purchase program
US gold futures for August de-
livery settled up $21.50 an ounce
at $1,588.40.
US futures trading volume was
just more than half of its 30-day
average, preliminary Reuters data
showed.
Turnover was light as some
traders avoided adding posi-
tions because of likely volatility
from news out of the two-day
meeting of European Union
leaders in Brussels that begins
on Thursday.
James Steel, chief commodity
analyst at HSBC, said gold was
helped by safe-haven bids against
the headwinds of weaker crude
and equities, which are usually
negative on bullion prices.
Physical buying from India,
one of the world’s top bullion
consumer, failed to rebound de-
spite a recovery in the rupee from
last week’s record lows versus the
dollar, dealers said. — Reuters
FTSE amount of assistance would be
set at a later stage. Some market
economists say it is merely a prel-
ude to a full bailout for Spain.
Spanish government bonds
came under pressure with the 10-
year bond yield up almost 30 basis
points at 6.64%, near the 7% mark
that forced other indebted Euro-
pean countries to ask for bailouts.
A European equity benchmark
fell 1.6% and the dollar, seen as a
safe haven when European mar-
kets are volatile, rose as worries
about global growth lingered after
KOSPI
last week’s soft data on manufac-
turing worldwide.
New US single-family home
sales surged in May to a seasonally
adjusted 369,000-unit annual rate,
the highest since April 2010, and
prices rose from a year ago amid
tightening supply. But the European
concerns outweighed any signs of
life in the long-struggling industry
as a homebuilding index fell 1.6%.
Wal-Mart Stores, Inc was
the lone advancer on the Dow.
Walmart Canada said the com-
pany is opening of 47 hiring
centers across Canada to support
its growth plans. The stock rose
1.3% to $68.18.
Volume was light with about
5.84 billion shares traded on the
New York Stock Exchange, NYSE
Amex and Nasdaq, well below the
daily average of 6.85 billion.—
Reuters
NEW YORK-WTI
(AUGUST CONTRACT)
LONDON-BRENT
(AUGUST CONTRACT)
117 117
109 109
101 101
93 93
85 85
77 77
J J
s DOLLARS PER BBL s DOLLARS PER BBL
J 30 days to June 25 J 30 days to June 25
June 19 20 21 22 25 June 19 20 21 22 25
$/bbl 84.35 81.45 78.20 79.76 79.21 $/bbl 95.76 92.69 89.23 90.98 91.01
Average (Jun 1-25) $83.05 Average (Jun 1-25) $96.20
Average (May 1-31) $94.72 Average (May 1-31) $110.29
from their year’s high of $128.40
and $110.50, respectively, achieved
in March as investors have been
pruning their positions in riskier
assets such as oil.
Saudi Arabia is showing no
sign of changing its policy of high
output in order to support global
economic growth.
The top OPEC producer is
largely responsible for the extra
volumes that have taken OPEC in
excess of its official output ceiling
of 30 million barrels per day.
OPEC ministers this month
said they would adhere to the
collective limit, implying a 1.6-
million-bpd cut from actual
supply from 12 members. To
achieve that, Saudi Arabia has
to reduce production sharply
and prospects of that appear
slim. — Reuters
US COMMODITY FUTURES
PLATINUM
(JULY CONTRACT)
30 days to JUNE 25,2012
1,490
1,472
1,454
1,436
1,418
1,400
Dollars per ounce
OPEN: 1430.40 CLOSE: 1439.40
HIGH: 1443.60 NET: 8.20
LOW: 1428.10 PREV: 1431.20
COFFEE
(JULY CONTRACT)
30 days to JUNE 25,2012
182
175
168
161
154
147
US cents per pound
OPEN 154.70 CLOSE: 158.70
HIGH: 159.00 NET: 3.55
LOW: 153.75 PREV: 155.15
WEDNESDAY, JUNE 27, 2012
MONDAY, JUNE 25, 2012
SPOT PRICES
••• METAL •••
••• FOOD •••
COCOA ICCO Dly (SDR/mt)
COCOA ICCO $/mt
COFFEE ICA comp ‘79cts/lb
1440.99
2182.55
142.50
COPPER Journal, spot, US cts/lb —— COFFEE mild arabica NY cts/lb 168
COPPER Merchant,US cts/lb 335.20 COFFEE mild arabica B’men/H’burg 164.55
COPPER No.2 Refined, US cts/lb 355.35 COFFEE robusta NY cts/lb 109.58
COPPER Bare Bright,del US cts/lb 389.85 COFFEE robusta Le Havre/Marseilles 101.79
LEAD battery scrap, del US cts/lb 32.50 SUGAR world 11 cts/lb ——
LEAD Premium, del US cts/lb 7.25 SUGAR world 11 weighted ave. ——
LEAD Asarco Premium, del US cts/lb —— SUGAR ISA FOB Daily Price, Caribbean port cts/lb 20.18
ALUMINUM Premium, del US cts/lb 9.88 SUGAR ISA 15-day ave. 20.37
ALUMINUM Alloy, spot, US cts/lb 87.00 ••• GRAINS •••
ALU Mixed Clips, del US cts/lb 61.00 (FOB Bangkok basis at every Thursday)
ALU Turnings, del US cts/lb 49.00 FRAGRANT (100%) 1st Class, $/ton 1083
TIN Premium/Grade A, US cts/lb 34.03 FRAGRANT (100%) 2nd Class, $/ton 1067
TIN Premium/Low Lead, US cts/lb 41.90 RICE (5%) White Thai- $/ton 612
PALLADIUM free $/troy oz 605.75 RICE (10%) White Thai- $/ton 609
PALLADIUM JMI base, $/troy oz 607.00 RICE (15%) White Thai- $/ton 598
PLATINUM free $/troy oz 1442.30 RICE (25%) White Thai- $/ton (Super) 581
PLATINUM JMI base $/troy oz 1441.00 RICE (35%) White Thai- $/ton (Super) 0
KRUGGERAND, fob $/troy oz 1557.30 BROKER RICE A-1 Super $/ton 547
NICKEL Premium, del US cts/lb 22.50
ZINC Premium, del US cts/lb 7.00 ••• RUBBER •••
IRIDIUM, whs rot, $/troy oz 1075.00 Standard M’sian Rubber 5 (FOB)Mal cts/kilo 900.00
RHODIUM, whs rot, $/troy oz 1200.00 Standard M’sian Rubber 20 (FOB)Mal cts/kilo 879.00
COCONUT LONDON METAL EXCHANGE
MANILA COPRA(based on 6% moisture) LME FINAL CLOSINGPRICES, US$/MT
Peso/100kg Buyer Seller
Manila 1600/1650
CASH 3 MOS 15 MOS
Lag/Qzn/Luc 2650/2750 ALUM. H.G. 1826.50 1865.00 1981.00
Coconut Oil-CRUDE 64.50/65.50 ALUM. Alloy 1774.50 1795.00 1851.50
COCONUT OIL (PHIL/IDN),$ per ton,
CIF Rotterdam COPPER 7345.75 7335.50 7339.00
Jul12/Aug12 1100.00 LEAD 1770.00 1788.00 1846.00
Aug12/Sep12 1110.00
NICKEL 16372.00 16420.00 16638.00
COCONUT OIL (US)-cents/lb TIN 18533.00 18525.00 18613.00
Crude CIF, NY Nola Mar/Apr 64.50
ZINC 1804.75 1805.00 1846.75
Crude FOB rail Nola Mar 66.50
LIFFE COFFEE LIFFE COCOA (Ldn)-10 MT-£/ton
New Robusta 10 MT - $/ton
High Low Sett Psett High Low Sett Psett
July 1,488 1,504 1,486 1,498
July 2012 2019 1990 2013
Sept 1,470 1,477 1,468 1,474
Sept 2030 2036 2005 2028
Dec 1,443 1,450 1,441 1,444
Nov 2029 2035 2009 2030
Mar 1,427 1,430 1,422 1,427
Jan 2014 2014 2000 2014
London copper settles up
on China buys, US data
NEW YORK/LONDON — Lon- lb, after dealing between $3.2880
don copper rose on Monday for and $3.3420.
the first time in four days and COMEX copper volumes
New York prices also firmed, with stood at 84,500 lots in late New
sellers silenced at the start of the York business, a shade above the
week by signs of buying in China 30-day average of around 80,000
and improved demand prospects lots, according to preliminary
in the US. Thomson Reuters data.
Copper pressed higher in Initial optimism following
healthy volume, as investors shift- an agreement by the leaders of
J
ed their attention away from the Germany, France, Italy and Spain
European debt situation and on a €130-billion ($156-billion)
focused on an improved demand package to revive growth faded
outlook in the US after data as investors remained pessimistic
showed new home sales surged in that this week’s European Union
May to a two-year high. summit will yield concrete meas-
Most other base metals fol- ures to tackle the region’s debt
lowed copper’s lead. Aluminum crisis.
futures ended up after sinking to The Thursday-Friday summit
a two-year low, tin bounced away of European leaders is likely to
from its lowest since September include discussions about spe-
last year, and zinc fully recovered cific steps towards a cross-border
after dropping to its cheapest since banking union, closer fiscal inte-
late October. gration and the possibility of a
Investors bet demand pros- debt redemption fund.
pects will improve should a June The focus also remained on
28-29 meeting of European Un- Spain, which formally requested
ion leaders produce substantive euro zone rescue loans on Mon-
measures to tackle the debt crisis, day to recapitalizes banks that are
now in its third year, and bolster laden with bad debts.
Spain, the euro zone’s fourth larg- Highlighting investor uncer-
est economy. tainty surrounding global growth
London Metal Exchange prospects, data last week from
(LME) benchmark copper ended the Commodity Futures Trad-
up $26 at $7,336 a ton, recovering ing Commission showed money
from a Friday trough at $7,219.50 managers trimmed their net short
— a low dating back to December. copper position during the week
In New York, the now-active of June 19, the first decline in this
COMEX September contract rose bearish position in four weeks.—
1.05 cents to settle at $3.3255 per Reuters
Source: Reuters
MONDAY, JUNE 25, 2012
GOLD SILVER COPPER
(JUNE CONTRACT) (JULY CONTRACT) (JULY CONTRACT)
30 days to JUNE 25,2012 30 days to JUNE 25,2012 30 days to JUNE 25,2012
1,635 2,959 358
1,614 2,899 351
1,593 2,839 345
1,572 2,779 338
1,551 2,719 332
1,530 2,659 325
Dollars per ounce Dollars per ounce Dollars per ounce
OPEN: 1574.90 CLOSE: 1587.50 OPEN: 2682.00 CLOSE: 2752.00 OPEN: 330.70 CLOSE: 331.60
HIGH: 1587.30 NET: 21.50 HIGH: 2759.00 NET: 85.90 HIGH: 333.80 NET: 1.00
LOW: 1571.00 PREV: 1566.00 LOW: 2656.50 PREV: 2666.10 LOW: 327.85 PREV: 330.60
COCOA SUGAR WHEAT
(JULY CONTRACT) (JULY CONTRACT) (JULY CONTRACT)
30 days to JUNE 25,2012 30 days to JUNE 25,2012 30 days to JUNE 25,2012
2315 21.95 730
2260 21.30 704
2205 20.65 678
2150 20.00 652
2095 19.35 626
2040 18.70 600
US cents per pound US cents per pound Dollars per bushel
OPEN: 2093.00 CLOSE: 2087.00 OPEN: 20.36 CLOSE: 20.30 OPEN: 682.00 CLOSE: 724.25
HIGH: 2103.00 NET: -7.00 HIGH: 20.46 NET: 0.06 HIGH 725.25 NET: 51.00
LOW: 2093.00 PREV: 2094.00 LOW: 20.13 PREV: 20.24 LOW: 682.00 PREV: 673.25