MANILA, Philippines— The new owners of  listed Philippine Telegraph & Telephone Corporation (PT&T), the firm being touted as the as likely 3^rd player in the country’s telco sector, has revealed its plans to get there.

In a disclosure to the Philippine Stock Exchange on Friday, October 13 in response to news reports, PT&T confirmed that “it intends to regain its status as a major telecommunications force in the Philippines and expand its present fixed broadband business across the country.”

The firm further confirmed that “it is looking for a strategic partner, possibly foreign, with regard to said expansion plans” and that “the firm is preparing itself for future talks.”

Reports put forwards firms like state-owned China Telecom, and India’s Joi owned by India’s richest man Mukesh Ambani of Reliant Industries as possible partners.

Trading on the firm’s shares however is currently suspended as it owes various creditors around P12 billion. PT&T announced a rehabilitation plan to lift the suspension and said it is currently holding talks its creditors.

PT&T noted that lifting the 13-year suspension of trading of its shares will allow the entry of strategic partners and that “barring any unforeseen delay, it intends to complete the rehabilitation plan by next year.”

Partnering with government agencies

The newly bullish telco intends to focus on fixed broadband connections to make headway into the sector dominated by Ayala-led Globe Telecom and Manuel V. Pangilinan-led PLDT, Incorporated.

“[PT&T] intends to expand our existing businesses across the country. For this purpose, the firm will set up a nationwide fixed broadband network and is looking at entering into agreements with various government agencies to help achieve this”.

Broadband’s penetration rate in the country is currently only between 14-16% while the 55-year old PT&T currently holds an estimated 500 kilometer fiber optic network throughout Metro Manila and the provinces.

One possible partner is state-run firm National Transmission Corporation (TransCo), who said that PT&T wrote to them signifying its interest to enter into a lease agreement with the firm.

Earlier this month, TransCo, which controls the cables that underpin the country’s power transmission system, said that it plans to diversify into telecommunications as a natural step and will petition congress to amend its charter.

For its part, PTT was non-committal saying that “it cannot speak on behalf of TransCo and its management plans.”

Control of PT&T was taken over by Business magnates Salvador "Buddy" Zamora II and Benjamin "Benjie" Bitanga through their private investment firm Menlo Capital Corporation which acquired 70% of PT&T.

Zamora is now PT&T’s chairman while Bitanga serves as President and CEO after its board approved the resignations of directors Jose Luis Santiago, Lucie Bantolino, and Maureen Santiago.

Lucio “Bong” Tan Jr, son of LT Group and PAL Holdings chairman Lucio Tan, is also a minority shareholder in Menlo Capital Corporation. — Rappler.com

COLOGNE, Germany – Coconut products, banana chips, snacks and the Pili nut took center stage at the Philippine delegation's trade fair booths at Anuga, the world's biggest food trade fair.

New, healthy products that will pique the interest of Western consumers were also highlighted. Nine companies participated as exhibitors in Anuga while 10 others were part of an outbound business mission that went around Europe to study markets and their trends.

Companies like Doxo Trading, Green Life, and Coconutcures Inc. were elated when they found out that coconuts are still a prevailing trend in the European food market, while Pili nut product manufacturer Rains Delicacies is seeing new opportunities for their products. This, after it was discovered in Switzerland that they are actually rich in Vitamin E.

However, entering a new market is never without challenges – something that businessmen from the Philippines are now ready to face head on with the help of new market knowledge and support from the Department of Trade and Industry. – Rappler.com

MANILA, Philippines – There will be no clearing and settlement operations by the Bangko Sentral ng Pilipinas (BSP) and the Securities Clearing Corporation of the Philippines on Monday, October 16, following an order from Malacañang to suspend government work due to a two-day nationwide transport strike.

The Philippine Stock Exchange (PSE) also suspended trading for Monday.

"Following the announcement by Malacañang of work suspension in government offices, [BSP] clearing operations for tomorrow, October 16, are suspended," the central bank announced on Sunday, October 15.

"Please be informed that there will be no trading at the [PSE] and no clearing and settlement at the Securities Clearing Corporation of the Philippines tomorrow, October 16, 2017, due to the suspension of operations in the Philippine Payments and Settlements System," the local bourse also announced on Sunday.

Aside from government offices, Presidential Spokesperson Ernesto Abella also announced the suspension of classes at all levels in public and private schools nationwide on Monday, due to the planned transport strike.

Several groups are set to protest the government's jeepney modernization program. (READ: Buses, jeepneys in the Philippines to be modernized by 2020)

The Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (Piston) and other transport groups oppose the plan to phase out jeepneys aged 15 years and older.

A similar transport strike staged last September also prompted several local government units to call off classes. – Rappler.com 

MANILA, Philippines – Government spending on infrastructure and other capital outlays surged by 18.1% in August, mainly lifted by efforts to complete road repair and flood control projects by the Department of Public Works and Highways (DPWH).

A report from the Department of Budget and Management (DBM) showed that disbursements for infrastructure and other capital outlays in August stood at P40.1 billion, up 18.1% from the P34 billion spent in the same month a year ago.

This supports the increase in total spending for August, which grew by 13.9% from the same month last year.

The DBM said the infrastructure expenditures in August included "payments for completed infrastructure projects" of the DPWH, as well as "capital outlay projects" of the Department of Education (DepEd) and Department of Health (DOH).

8-month results

From January to August this year, infrastructure spending grew by 11.9% to P377.6 billion, from the P301.7 billion recorded in the same period in 2016.

Total government spending for the 8-month period grew by 9.8% to P1.8 trillion, from P1.6 trillion in the same period last year. (READ: World Bank cuts Philippine GDP forecast again)

The DBM said the "upswing in infrastructure and other capital outlays resulted from the implementation of public infrastructure projects of the DPWH and Department of Transportation."

The budget department also attributed the increase in infrastructure spending to "capital outlay projects in state universities and colleges," the upgrade of the DOH's health facilities, as well as the modernization program of the Armed Forces of the Philippines (AFP).

The DBM added that the disbursements for September are seen to be substantial, owing to the huge infrastructure spending requirements of the DPWH.  

"The growth rate, however, is projected to be moderate in view of the one-off P20.5 billion just compensation to PIATCO Incorporated, which was paid in September of  the previous year in connection with the expropriation case of the NAIA Terminal 3," the budget department said.

"Nonetheless, the payment for the right-of-way claims for various DPWH projects, as well as the procurement for the respective modernization programs of the DND-AFP and DILG-Philippine National Police are already ongoing following the release of their allotments in August this year," it added.

The DBM said these are expected to further increase disbursement levels in the succeeding months. – Rappler.com

MANILA, Philippines – Globe Telecom on Monday, October 16, said that "emergency operations" on its database servers are affecting service to its subscribers.

"Emergency operations on our database servers early this morning have caused several Prepaid and Postpaid customers to experience intermittent access to voice, text and data services," the company said in its official Facebook page.

{source}<iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fglobeph%2Fposts%2F10155394005639748&width=500" width="500" height="313" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowTransparency="true"></iframe>{/source}

The company said that as of 9 am Monday, data services for affected subscribers, as well as mobile services for Globe Postpaid consumers, are "back to normal."

As of 10:43 am, Globe said "that voice and SMS services have been fully restored for Globe prepaid customers" and that "all mobile services for Globe customers are now back to normal." – Rappler.com

MANILA, Philippines – Money sent home by overseas Filipinos last August saw the fastest growth in 5 months, fueled by those with work contracts in the United Arab Emirates (UAE) and the United States, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The central bank on Monday, October 16, reported that cash remittances– money sent through banks and transfer agents – grew by 7.8% to $2.5 billion (P128.02 billion) in August 2017, from the same month a year ago. This was its fastest growth since it registered a 10.7% growth in cash remittances in March 2017.

The BSP said the primary contributors to the rise in cash remittances for August were the UAE, the US, Singapore, and Qatar.

This brought the cash remittances in the 1st 8 months of 2017 to $18.6 billion (P952.66 billion) or a 5.4% increase compared to the level registered in the same period last year. (READ: Due to Trump? Filipinos in US sending more money home)

Meanwhile, personal remittances – transfers in cash and in kind through banks and hand-carried deliveries – grew by 9.4% year-on-year to reach $2.8 billion (P143.48 billion) in August.

This brought personal remittances for the 1st 8 months of 2017 to $20.7 billion (P1.06 trillion), higher by 6.4% relative to the year-ago level.

"The increase in personal remittances was driven largely by the sustained inflow of transfers from land-based workers with work contracts of one year or more [at $16 billion]," the BSP said.

For the 1st 8 months of 2017, the bulk of cash remittances – or 82.5% of the total – came from the US, Saudi Arabia, UAE, Singapore, Japan, United Kingdom, Qatar, Kuwait, Germany, and Hong Kong. – Rappler.com

P51.2342 = $1

MANILA, Philippines – Malaysia-based infrastructure conglomerate MTD Capital Berhad submitted an unsolicited P121.8-billion proposal to build a 207-hectare national government administrative center at New Clark City in Capas, Tarlac – similar to Putrajaya in Malaysia.

The Bases Conversion and Development Authority (BCDA) on Monday, October 16, announced that it received an unsolicited proposal from MTD Capital Berhad to establish the New Clark City National Government Administrative Center through a joint venture agreement.

MTD Capital Berhad is an investment holding company with interests in civil engineering and construction, infrastructure development, real estate and property development, energy, ports, and manufacturing of construction-related materials. It is the parent company of AlloyMTD Philippines.

The BCDA said that under the proposal, MTD Capital Berhad will finance the project, as well as provide technical and engineering expertise for the construction, operations, and maintenance of the New Clark City National Government Administrative Center.

"All of its components, salient features, and terms shall be subject for thorough review, negotiations, and approval of BCDA," the state-run agency said.

Like Putrajaya, the proposed national government administrative center in Tarlac is seen to house satellite offices and major administrative offices of various departments and agencies.

Putrajaya serves as the federal administrative center of Malaysia.

As part of its proposal, MTD Capital Berhad will also construct an extension office for the Philippine president and executive buildings, as well as develop sites for embassies and international schools.

Replicating Putrajaya

The proposed Putrajaya-like government center in Tarlac is also expected to have housing for government employees, sports facilities, a central communications and security command center, public schools, a government hospital, a public library, as well as buildings for community centers.

The BCDA said MTD Capital Berhad's proposed site plan for the 1st phase of the project costs P17 billion. The agency said the 1st phase will cover 50 hectares of the 207-hectare total area.

"MTD Capital Berhad's proposal follows the practice of other progressive countries such us Putrajaya in Malaysia and Sejong City in South Korea by establishing national government administrative centers outside the country's capital — helping ease traffic congestion and overpopulation in the metropolitan area," the BCDA said.

New Clark City will rise in the Clark Special Economic Zone in Capas and Bamban, Tarlac.

The BCDA envisions it to become the country's 1st and only smart and green city, with mixed-use real estate developments, an agro-industrial park, and a food processing terminal.

Aside from New Clark City, the BCDA is also implementing projects such as the Clark International Airport upgrade and the Subic-Clark Cargo Railway, aimed at providing interconnectivity to Manila. (READ: Auction for new Clark airport terminal starts)

MTD Capital Berhad has operations in Saudi Arabia, the United Arab Emirates, the United States, the United Kingdom, Australia, Indonesia, Singapore, Sri Lanka, India, Thailand, Chile, and China. – Rappler.com

MANILA, Philippines— Officials of the Bureau of Customs (BOC) said they have no objections to being subjected to intensified lifestyle checks to weed out corruption, they however said that officials from other agencies should also undergo the same checks.

The Department of Finance (DOF), which has suppervision of the BOC, said late last year that it would intensify efforts to end corruption including checking bank accounts, as part of lifestyle checks on bureau officials on the orders of President Rodrigo Duterte.

“Public office is a public trust and government employees are accountable to the people,” said lawyer Lourdes Mangaoang, a senior collector assigned in BOC’s Revenue Collection and Monitoring Group who voiced her approval of the measure.

Lifestyle checks is “one of the means by which corruption can be eradicated,” she added.

The attorney noted that a government employee may be subjected to a lifestyle check under the Anti-Graft and Corrupt Practices Act, Ethical Standards and Code of Conduct for Government Employees, and Civil Service Law.

The DOF’s anti-corruption arm, the Revenue Integrity Protection Service (RIPS) implements lifestyle checks on officials from BOC as well as the Bureau of Internal Revenue (BIR).

Specifically, they  look for unexplained wealth and evidence that officials are living beyond their means based on their filed Statement of Assets, Liabilities and Net Worth (SALNs).

“We have to be smart about catching corrupt people. You cannot always catch them like, you know, playing cops and robbers. We have to catch them by …checking their lifestyle, checking their bank accounts, checking how many cars they own,” Finance Secretary Carlos Dominguez said when the lifestyle checks were announced.

Mangaoang, who is also the President of the BOC Collectors’ Association, said however that these lifestyle checks should be applied throughout the government.

“There are other collection agencies which are tainted by corruption… The Office of the Ombudsman releases a yearly report which names the 10 most corrupt government agencies. Lifestyle checks should also be conducted on employees of those agencies and the BOC and BIR should not be singled out,” she said.

Time to adjust

The BOC is currently undergoing a reshuffle involving several district collectors and section chiefs. Several officials of the Philippine Drug Enforcement Agency (PDEA).  have assumed key posts in BOC this month.

Meanwhile, 30 section chiefs from the Formal Entry Divisions of the Port of Manila (POM) and Manila International Container Port (MICP) were reassigned to other provincial collection districts.

For her part, BOC Employees Union President Remedios Princesa said that custom officials are used to lifestyle checks but time should be allotted to allow the BOC to normalize operations. She suggested that the lifestyle checks be done early next year.

“Bigyan muna nila panahon na maging maayos takbo ng bureau. Huwag sabay-sabay. Napakadami ng burdens sa BOC, (They should give time to allow for the efficient running of the bureau. Don’t do at the same time. The BOC is already carrying a lot of burden),” she said.—Rappler.com

MANILA, Philippines – The chief of the Philippine Stock Exchange (PSE) thinks the proposal of Calata Corporation to sell out to Millennium Global Holdings Incorporated to save itself from being delisted "is not workable."

The local bourse has instead proposed that Calata conduct voluntary delisting, with a condition.

Back in August, Calata had said it plans to spin off its assets and sell an 81% stake to Millennium Global – a move that might save the agriculture firm from being delisted from the local bourse.

This comes amid the PSE initiating an involuntary delisting procedure against the company because of multiple disclosure violations.

But on the sidelines of a forum conducted by the Shareholders Association of the Philippines, PSE president Ramon Monzon said Calata's proposal involves many uncertain things. These include getting approval from the Securities and Exchange Commission (SEC) for the proposed increase in authorized capital stock to facilitate the entry of Millennium Global.

At the same time, Monzon said Calata would need to secure shareholders' approval for the planned spinoff of its assets and the proposed sale of an 81% stake to Millennium Global. (READ: To save the firm, Calata to sell out to Millennium Global)

"To be able to do that, Calata would need [a] 67% vote; and right now, these small shareholders of Calata own [a] 72% stake in the company," the PSE chief said.

Millennium Global said it plans to use Calata to acquire the business of its subsidiary Millennium Ocean Star Corporation, which is a leading exporter and importer of seafood and aquaculture products in the local and international market.

"Would the small shareholders agree to that move wherein their 72% stake will only be equivalent to 8% stake in Millennium Global? It is not practical. We told them this is not workable," Monzon told reporters.

Voluntary delisting

The PSE's proposal that Calata conduct voluntary delisting includes a condition that it must conduct a tender offer to small shareholders.

"The message we gave them is if you (Calata) really are concerned for small shareholders, PSE is going to bend its rules and make it a voluntary delisting offer so they could conduct a tender offer. If they make a tender offer then PSE will allow them to conduct voluntary delisting," Monzon said.

Companies that are involuntarily delisted from the PSE face stiffer penalties as they are not allowed to relist within 5 years of being delisted.

At the same time, the officers or directors of involuntarily delisted firms are disqualified from becoming officers or directors of any company applying for listing with the PSE.

Companies that voluntarily delist from the PSE may apply for relisting anytime. – Rappler.com

PARIS, France – Airbus will take a majority stake in Bombardier's marquee C-Series airliner program, the companies announced Monday, October 16, as the Canadian firm battled against a stiff tariff ruling in the US.

The landmark agreement comes after the US administration slapped a 220% countervailing duty, as well as an 80% anti-dumping tax, on Bombardier CS100 and CS300 aircraft imported into the United States.

Boeing accuses Bombardier of manufacturing its 100-150 seat planes with public subsidies and selling them at a loss to Delta Air Lines.

The agreement between Airbus and Bombardier aims to allow for significant production savings on the C-Series aircraft and to make use of Airbus's international reach for sales, the two groups said in a statement.

"It's a win-win deal for everyone," said the president of Airbus, Tom Enders.

"I have no doubt that our partnership with Bombardier will boost sales and the value of this program enormously."

The program's production headquarters will remain in Quebec.

Airbus will take approximately 50.01% of the shares in CSALP, the entity which manages the C-Series program, with Bombardier and Investissement Quebec holding 31% and 19% respectively.

"We are very happy to welcome Airbus to the C-Series program," Bombardier's CEO Alain Bellemare said.

"Airbus is the perfect partner for us, Quebec, and Canada," he added.

A deal between the two companies had been mooted previously but discussions stalled two years ago and the project was abandoned.

The C-Series is a state-of-the-art aircraft largely built from composite materials. It complements Airbus' medium-range carrier, the A320, which can carry some 140 passengers.

"The single aisle market is a key growth driver, representing 70% of the expected global future demand for aircraft," according to a statement from Bombardier.

"Ranging from 100 to 150 seats, the C Series is highly complementary to Airbus' existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats)."

Trade dispute

The US aerospace firm Boeing, claiming its competitor received unfair state subsidies, successfully petitioned the Trump administration to impose financial penalties on Bombardier to keep it from selling its C-Series planes in the massive US market.

In turn, Canada has voiced interest officially in some Australian military aircraft and called off discussions with Boeing on a possible purchase of 18 new Super Hornets. It intends to renew its fighter jets and is set to seek offers in 2019.

Bombardier's C-Series is the first new design in the 100- to 150-seat category in more than 25 years, and US-based Delta Airlines has ordered 75 of them.

In the complaint to the US Commerce Department that led to massive anti-dumping duties being imposed on Bombardier, Boeing accused its rival of unfairly benefiting from state subsidies that allowed it to sell C-Series aircraft at below cost to Delta Air Lines.

During a conference call for the airline's third quarter results, Delta chief executive Ed Bastian said the duties imposed on the C-Series were "nonsensical," and vowed not to pay the additional tariffs.

The trade row escalated to include rebukes from Canadian Prime Minister Justin Trudeau, who vowed to retaliate by nixing plans to buy 18 Super Hornet fighter jets from Boeing, and Britain's Prime Minister Theresa May, who is worried for 4,200 C-Series wing assembly jobs in Northern Ireland.

Bombardier, meanwhile, has noted that the C-Series rollout would generate more than US$30 billion for US suppliers and support 22,700 American jobs. – Rappler.com

MANILA, Philippines – The Philippine Stock Exchange (PSE) plans to revise its rules to allow trading even on days when the clearing activities of the Bangko Sentral ng Pilipinas (BSP) or Philippine Clearing House Corporation (PCHC) are suspended.

The local bourse issued the proposed amendment after the suspension of trading on Monday, October 16, which was due to Malacañang's decision to call off classes and government work because of a nationwide transport strike. (READ: Transport strike shuts Philippine financial markets)

Under its current trading rules, the PSE trades every day except for Saturdays, Sundays, legal holidays, special holidays, days when the BSP is closed, and suspension days declared by the Securities and Exchange Commission (SEC) or the local bourse.

The PSE uses the central bank's Philippine Payments and Settlements System (PhilPaSS) to facilitate cash payments for cash purchases. This means the PSE needs PhilPaSS to allow settlements to be completed.

"The exchange recognizes the global market dynamics in operating the country's sole stock market. As such, it is important for the exchange to have the ability to allow investors to trade in the market and minimize situations where trading is suspended unexpectedly," the local bourse said on Tuesday, October 17.

"However, the exchange also recognizes that the declaration of non-working days for government offices is a prerogative vested on government alone, even if such decision affects the ability of the PSE to open the market for its investors," it added.

In a memorandum, the PSE sought comments from investors on the proposed change.

Meanwhile, trading resumed at the local bourse on Tuesday, even after Malacañang's late announcement on Monday evening that again suspended government work and classes.

Jeepney drivers and operators are protesting the government's public utility vehicle (PUV) modernization program. (READ: Buses, jeepneys in the Philippines to be modernized by 2020) – Rappler.com

CEBU, Philippines – More Chinese airlines are set to launch regular direct flights between China and Cebu – a move that will allow the Philippine province to cash in on the highest spending tourist market in the world.

GMR Megawide Cebu Airport Corporation (GMCAC), the developer of the Mactan-Cebu International Airport (MCIA), said China Eastern and Juneyao Airlines will start flights from Shanghai City in China to Cebu and vice versa, through the Shanghai Pudong International Airport, this month.

Okay Airways will also launch thrice weekly flights to China's historic Xi'an City on October 30, GMCAC said in a statement.

This will bring the total number of international destinations from Cebu to 18, from just 7 in 2014.

"Promoting the province and its surrounding areas to other Asian countries, especially China, is among our highest priorities," GMCAC president Louie Ferrer said on Tuesday, October 17.

China Eastern will have 7 weekly flights in its first run from October 18 to October 28. It will resume operations on January 18, 2018.

Juneyao Airlines, meanwhile, will begin thrice weekly flights starting October 30. (READ: Cebu airport building up to be alternative gateway)

GMCAC said Juneyao Airlines and Okay Airways are MCIA's newest Chinese airline partners.

The airport operator added that new routes to Beijing and Bangkok are expected to be launched in the next two months.

By end-October, MCIA will serve a total of 18 international destinations and 35 domestic destinations.

"We have seen outstanding results from our destination marketing initiatives these past 3 years but this is only the beginning. We are looking to promote Cebu to other untapped markets and this includes other provinces in China. Australia and other Southeast Asian countries like Thailand are also high on our list," Ferrer said.

He added that they are targeting new flights to North Asia, the Middle East, North America, and Europe. MCIA will also open more domestic flights later in the year.

GMCAC took over operations of MCIA on November 1, 2014. At the time, MCIA had only 7 international and 23 domestic destinations. – Rappler.com

MANILA, Philippines – Listed agribusiness Calata Corporation declined the offer of the Philippine Stock Exchange (PSE) to take the voluntary delisting route, saying conducting a tender offer to small shareholders is "grossly impractical" and "will kill the company."

Calata on Tuesday, October 17, told its shareholders in an open letter that the firm is not capable of conducting a tender offer because of insufficent earnings to cover the buyback of shares.

This open letter comes as a response to the PSE proposal for the company to delist voluntarily on the condition that it will conduct a tender offer to small shareholders. 

PSE president Ramon Monzon had said Calata's plan to sell out to Millennium Global Holdings Incorporated in a bid to save the firm from being delisted "involves many uncertain things." This includes getting approval from the Securities and Exchange Commission (SEC) for the proposed increase in authorized capital stock to facilitate the entry of Millennium Global.

But for Calata, selling out to Millennium Global remains the best solution for its small shareholders. (READ: To save the firm, Calata to sell out to Millennium Global)

Calata said it has only "around P400 million in retained earnings as of end-2016," which is below the P1 billion needed to conduct a tender offer to small shareholders.

"It is grossly impractical because if the company will force itself to generate cash for the tender offer despite its limited retained earnings, it will have to sell its assets," Calata told its stockholders. "This would easily be a red flag for its existing business creditors such as the banking institutions."

Liquidating entire Calata?

Calata, which considers itself as a neophyte member of the PSE, also said that a tender offer will likely liquidate the entire firm, given the large public float, which is at 73.15%.

"To liquidate the company just because the PSE wants a tender offer is not only impractical but grossly unfair. It is unfair simply because a regulatory violation by a single shareholder should not be a justification to kill a legitimate business which has been profitably operating for the past decades," Calata said.

"Necessarily, once it is learned that a liquidation process is being done to generate cash for the tender offer, all creditor banks will call on their loan."

It was last July 22 when the local bourse initiated a delisting procedure against Calata for committing multiple violations of the PSE disclosure rules.

PSE had said Calata committed 29 violations of Section 13.1 of the disclosure rules from November 29, 2016 to June 20, 2017.

Section 13.1 provides that a listed firm should file within a 5-year period any direct and indirect ownership change of its directors and principal officers.

The local bourse added that Calata also committed 26 violations of Section 13.2, which prohibits directors or principal shareholders of a listed firm from trading the company's stock when material non-public information is obtained and up to two full trading days after the price-sensitive information is disclosed.

Calata management said asking it to conduct a tender offer appears to be a punishment for the company, which it said is "an innocent juridical person which did not have anything to do with the violation committed by the shareholder."

"Thousands of families are depending on the business which include not only its employees but hundreds of thousands of farmers and dealers who very much depend their livelihood on the business," Calata management said.

"This does not mean however, that the person responsible should go unpunished. It is simply stated that the tender offer being forced upon the company is not a win-win solution after all."– Rappler.com

MANILA, Philippines – Business and politics do not mix.

This was the conclusion when Trade and Industry Secretary Ramon Lopez spoke Tuesday, October 17,  at the European Union-Philippines Business Summit held at the Solaire Grand Ballroom.

Lopez warned about political interference and he cited  "the importance of mutual respect for sovereignty," echoing the stern statements of President Rodrigo Duterte. 

President Duterte on Thursday, October 12, wrongly claimed that the EU wanted to expel the Philippines from the United Nations Human Rights Council. As a retaliation, Duterte threatened to kick out EU ambassadors.

However, the Duterte's fiery speech did not affect the EU businessmen in the summit. 

Statement of the EU businessmen

"You know, rhetoric is rhetoric and we have taken it with a smile. I think we have issued a statement, it was very loving. We have cleared – the issue has been addressed adequately. I think that should be the end of it," said European Chamber of Commerce of the Philippines President Guenter Taus.

Their statement on Thursday, October 12, said: "The recent visit of the delegation of the 'International Delegates of the Progressive Alliance' to the Philippines on 8-9 October was not a 'European Union mission', as falsely reported by some media outlets.

"The European Union was not part of the organisation or planning of that visit - neither the Delegation of the European Union in the Philippines nor the European Union institutions in Brussels. The statements made by the Progressive Alliance during its visit to the Philippines were made solely on behalf of the Progressive Alliance and do not represent the position of the European Union.

"The Delegation continues to operate and function normally, and is committed to working constructively and productively with the Philippines for the benefit of the population," the statement continued.

During the summit, the DTI secretary said Duterte does not take foreign interference well.  "That’s his [the President's] statement and of course that will be the government policy – we’re not changing it. What we are just emphasizing is the importance of mutual respect for sovereignty," Lopez said, referring to the President's EU remarks.

After Duterte's erroneous speech about the EU, Presidential Spokesperson Ernesto Abella on Friday said the President was reacting to "statements by a 7-member delegation of the International Delegates of the Progressive Alliance which has falsely portrayed itself as an EU mission." (READ: Malacañang admits Duterte 'being fed wrong info' on EU)

Secretary Lopez said any interference in the Philippines' sovereignty may result in the "extreme reaction" that "even the trade is willing to be sacrificed... Hopefully it does not happen." 

'Business is different from politics'

Taus clarified that the previous statements by European delegates and the EU Parliament do not represent the EU Commission's opinion which is in charge of the trade agreements.

He furthermore stated that "while EU Commission cannot stop the EU Parliament from seeing the things they see, the EU Commission only looks after business and not politics."

According to him, trade negotiations are still on track and only time will tell what will happen next. 

In previous years, the EU has played an important role in the Philippine economy and agribusiness industry. The EU has been the 2nd top export market and the 4th top source of OFW remittances. (READ: FAST FACTS: How important is the EU to the Philippines?) – Rappler.com

MANILA, Philippines – After several years of being named one of the "worst airports," the Ninoy Aquino International Airport (NAIA) has finally lost the tag.

The latest survey released by travel website The Guide to Sleeping in Airports showed that NAIA is no longer included in the top 20 worst airports in the world, and even in the top 5 worst airports in Asia for 2017.

From 2011 to 2013, NAIA was named the world's worst airport. In 2014, it landed in 4th place. It was not included in the top 10 worst airports in the world in 2015, but was ranked 8th worst airport in Asia. NAIA was then named the 5th worst airport in Asia in 2016.

The government attributed this development to the resolution of the laglag-bala or bullet-planting scam, where bullets were planted inside unsuspecting passengers' bags in an attempt to extort money from them.

"While it is good that we are not listed among the worst, let us work even harder to be included amongst the best," Transportation Secretary Arthur Tugade said in a statement on Wednesday, October 18. (READ: 'Worst airport' no more? What changed in NAIA in first 100 days)

No complacency

Tugade said the government should not be complacent, as there are several things yet to be improved at NAIA.

Manila International Airport Authority (MIAA) General Manager Ed Monreal echoed his remarks, saying this result "is only as good as the last race."

"The bigger challenge is to maintain or even surpass our achievement," Monreal said.  

Meanwhile, 4 regional airports in the country again joined the top 25 best airports in Asia for 2017. These are the Iloilo International Airport, Mactan-Cebu International Airport, Clark International Airport, and Davao International Airport. (READ: DOTr's hits and misses in 1st 100 days: NAIA, EDSA traffic, MRT3)

The developments implemented at NAIA during the administration of President Rodrigo Duterte include the restriction on general aviation to prioritize commercial flights and reduce flight delays; the imposition of the 5-minute rule to reduce flight delays; as well as the construction of rapid exit taxiways.

During his 1st week in office, Tugade had agreed to let local airlines undertake the maintenance of public restrooms at NAIA's 4 terminals – at no cost to the government. 

Tugade had also asked help from the country's two telecommunications giants, PLDT Incorporated and Globe Telecom Incorporated, to set up free Wi-Fi in almost all airports. – Rappler.com

NEW YORK CITY, USA – It's the prize of a lifetime – a $5 billion investment creating 50,000 well-paid jobs that everyone wants, but only one US city will get.

From East to West, from North to South, metropolises across the United States are locked in a frenzied bidding war desperate to woo Amazon into favoring them as the site of the e-commerce giant's second headquarters.

From $7 billion in tax breaks in Newark, New Jersey – 50 years ago aflame by deadly race riots – to a giant cactus shipped inter-state, bids range from the colossally ambitious to the silly before Thursday's (October 19) deadline for submissions.

The e-commerce giant announced last month that it planned to invest more than $5 billion in opening Amazon HQ2, a second company headquarters in North America that would create up to 50,000 jobs, and tens of thousands of spin-off jobs.

"We expect HQ2 to be a full equal to our Seattle headquarters," promised Amazon founder Jeff Bezos, America's second richest billionaire worth $85.8 billion.

The Seattle-based company's unusual announcement unleashed nationwide competitive juices as some of America's most glittering cities – New York and Chicago vie with lesser-known backwaters looking to exit oblivion.

"Let any state go and try to beat that package," announced a typically bombastic New Jersey Governor Chris Christie on behalf of Newark's bid.

Christie, a Republican ally of US President Donald Trump, reached across the increasingly bitter US partisan divide to join forces with Democratic Senator Cory Booker and champion Newark's chances.

Amazon zipcode

New Jersey dangled the prospect of $5 billion in tax incentives over 10 years, $1 billion in property tax abatement and wage tax waivers that would allow Amazon employees to keep around $1 billion of their hard earned money over 20 years.

As part of New York's metropolitan area, Newark fulfills Amazon's preference for places with more than one million people, a business-friendly environment and urban or suburban locations able to attract and retain strong technical talent.

But that wishlist hasn't stopped lesser contenders resorting to gimmicks in a bid to win attention and perhaps circumvent the stipulations from Amazon.

Atlanta suburb Stonecrest, Georgia has offered to surrender 345 acres to create a new city called – wait for it – Amazon.

"They have an eternal brand if they create and live in Amazon," Mayor Jason Lary told Fox Business. "Their own zipcode."

Birmingham, Alabama erected giant replicas of Amazon's distinctive grey shipping boxes downtown, a business group in Tucson, Arizona, uprooted a 21-foot (6.5-meter) cactus and shipped it to Amazon's Seattle head office.

"Unfortunately, we can't accept gifts (even really cool ones)," tweeted the retailer in response, saying they had donated it to the Desert Museum.

Then there have been the letters. Basketball legend Michael Jordan reportedly wrote to Bezos recommending Charlotte, North Carolina.

So did the city of Gary, Indiana – part of the US Rust Belt where more than a third of the population is believed to live in poverty.

'Far-fetched'

"I know locating (to Gary) may seem far-fetched," it said in an advertisement taken out in The New York Times.

"But far-fetched is what we do in America. It was far-fetched for 13 scrawny American colonies to succeed against the might of the British Empire."

Gary didn't make the top-10 shortlist drawn up by Moody's Analytics, which put Austin, Texas in pole position, but included Atlanta, Philadelphia, burgeoning tech hub Pittsburgh, New York metropolitan area and Boston and Salt Lake City.

Chicago, America's third largest city, has also jumped into the fray but "to ensure the competitiveness" of the bid, made few details available.

A study commissioned by World Business Chicago claimed that in 17 years, HQ2 would generate $341 billion in total spending, including $71 billion in salaries.

But not everyone is over the moon at the prospect of Amazon, which has attracted criticism for offshore tax dodging, coming to town.

Writing to Bezos on Tuesday, October 17, leaders from more than 80 civic groups warned that Amazon must be ready to hire locally, pay its fair share of taxes, and make sure that the entire community benefits.

"We're expecting Amazon to pay your fair share if you end up being our neighbor," it said. – Rappler.com

MANILA, Philippines – It is not a secret that the Philippines has infamously poor internet service. Even the acting chief of the Department of Information and Communications Technology (DICT) acknowledges this, likening it to Metro Manila traffic jams.

"The effect of traffic and the effect of the internet speed in the country are the same – slow, congested, and expensive. That is why we have to do something about it," DICT Undersecretary and Officer-in-Charge Eliseo Rio Jr told civil groups in a conference in Quezon City on Wednesday, October 18.

"We could not be the world's number one business process outsourcing (BPO) voice service provider if our internet speed is slow and expensive. Our problem is that most of us access internet on the mobile data infrastructure of telcos," Rio added.

The internet service in the archipelagic country is mainly controlled by two telecommunications giants – PLDT Incorporated and Globe Telecom Incorporated. It was only last August when the Philippine government signed a law providing free Wi-Fi in all public places.

Access points

Under Republic Act No. 10929, Rio said the DICT targets to put up around 250,000 access points before the term of President Rodrigo Duterte ends. The plan is to provide connections of at least 4 megabits per second (mbps) to 100 people at every access point.

Rio said deployment of each access point costs about $600. This is on top of the government's subscription of about P12,000 per megabit per month.

"We lack in cellular towers," Rio pointed out. "Right now, the Philippines only has around 20,000 cellular towers, when we need at least 67,000 to improve mobile data access."

Last May, Akamai Technologies' Global State of the Internet Report showed that the Philippines has the slowest average internet speed in Asia Pacific. Its average connection speed is just 5.5 mbps, falling short of the global average internet connection speed of 7.2 mbps.

Common towers

But the DICT official said telecommunications providers are not solely to blame for this.

"Building it is expensive. Of course, it won't make business sense for them to go to underserved areas if they are already making a profit in Metro Manila, especially if they are not being incentivized," he explained.

To help in this aspect, Rio said the government will construct common towers to be leased out to telecommunications service providers as soon as possible.

Under the National Broadband Plan, these common towers will address the need for 67,000 more cell sites, Rio told reporters on the sidelines of the event.

"We estimate that within 3 years, we can also migrate from the subscribing to telcos to the National Broadband Plan's common towers. By that time, we won't need to subscribe to telcos," he added.

Aside from putting up access points and common towers, Rio said the government will soon have a telecommuting law "to encourage content providers to make people subscribe to high-speed internet from their homes."

"With these solutions, we can improve internet access at the earliest time possible. We still have a lot of catching up to do," he added. – Rappler.com

BEIJING, China – China's economy slowed marginally in the third quarter but is well on course to beat the government's annual target, cementing Xi Jinping's standing as he prepares to be handed a second term in power at a key Communist Party conclave.

The world's number two economy expanded 6.8% in July-September, but while the figures release on Thursday, October 19, were slightly down from the 6.9% of the previous two quarters it indicated stability after a years long slowdown in growth.

"The national economy has maintained the momentum of stable and sound development in the first three quarters, with favorable factors accumulating for the economy to maintain medium-high rate of growth," said National Statistics Bureau spokesman Xing Zhihong.

"However, we must be aware that international conditions remain complicated and volatile and the national economy is still at a crucial stage of restructuring with the foundation for sound development yet to be consolidated."

While well off the breakneck rates of a decade ago, the reading was in line with a survey of analysts by Agence France-Presse and put the economy well on course to eclipse the official target of about 6.5% for the whole year.

The economy grew 6.7% last year, which was its slowest pace for more than a quarter of a century.

Key reforms

The readings come as Xi is set to secure another 5-year term as the party's general secretary at the highly choreographed week-long congress, which he is expected to use to surround himself with loyalists at key leadership posts.

And analysts say he now has a chance to push through key reforms.

"Relatively strong economic performance this year offers a good opportunity for the government to address several long-term economic issues," Raymond Yeung, chief Greater China economist at Australia & New Zealand Banking Group in Hong Kong, wrote in a recent report.

"Xi also needs to shift China’s economy from a credit-intensive, property-led growth model to one that supports sustainable growth," he said, according to Bloomberg News.

Beijing has for years been trying to transition the economy from one reliant on exports and state investment to domestic consumption.

And Thursday's figures suggest their work is paying off. Brisk consumer spending and strong factory output fueled economic growth in July-September, while retail sales rose 10.4% on-year during the first 3 quarters.

"Consumption is the stabilizing factor of the economy, and industrial output actually quickened in September," Grace Ng, an economist at JPMorgan Chase &amp; Co. in Hong Kong, said.

The services industry contributed the majority of China's economic growth, according to the Statistics Bureau, and in line with sentiment expressed on Wednesday by Xi.

"China's economy has been transitioning from a phase of rapid growth to a stage of high-quality development," Xi told an audience of 2,300 party leaders when he opened the congress on Wednesday, October 18.

Debt worries

He emphasized this point by leaving out new growth targets from his speech. His predecessor Hu Jintao made doubling the country's GDP by 2020 a key point of his opening remarks at party gathering in 2012 and in 2007 pledged to double per capita income.

Less pressure for high growth could roll back the policy stimulus that has caused China's debt to spiral to levels that have led to two sovereign rating downgrades and warnings of a financial crisis.

The soaring debt is most concentrated in China's state-owned enterprises, which have continued overbuilding and overproducing for example with a glut of steel. 

The latest figures showed some progress on that front, with the debt to asset ratio, one measure of leverage, at China's largest industrial enterprises ticking downwards slightly from last year.

The NSB's Xing said China had continued "the work of cutting overcapacity, reducing excess inventory, deleveraging". 

But Xi made it clear market forces would not be used to constrain the state-owned companies' ambitions or decisions.  

"We will support state assets in becoming stronger, doing better, and growing bigger," he said in his speech, a nod that China's massive state-owned enterprises would continue to hold sway in the economy for years to come. – Rappler.com

MANILA, Philippines – The Philippines' second biggest bank said on Thursday, October 19, it will spend $288 million buying out the minority stake that Australia's ANZ has in a credit card joint venture.

Metrobank will take over ANZ's 40% share in Metrobank Card Corporation as part of a deal to turn the tie-up into a wholly-owned subsidiary.

Metrobank, short for the Metropolitan Bank and Trust Company, formed the 60-40 joint venture with ANZ in 2003.

Metrobank head of investor relations Joey Mapa said the sale was "a mutual agreement."

"We feel we are in a position to manage it on our own as it eventually becomes a 100% subsidiary," Mapa told Agence France-Presse.

Metrobank said the sale would provide it with additional earnings and improve efficiencies between the bank and the credit card company.

"With this transaction, we now have great opportunities to further expand our retail capabilities," Metrobank president Fabian Dee said in a statement. (READ: George Ty and MVP transaction is best deal of 2016 – IHAP)

ANZ deputy chief executive officer Graham Hodges said in a statement that "the sale makes sense for ANZ given our continued efforts to simplify our business." – Rappler.com

MANILA, Philippines – The local unit of Southeast Asia's biggest budget airline AirAsia Berhad is set to fly from Manila to Bali and Jakarta in Indonesia as well as to Ho Chi Minh City in Vietnam soon. This will give Philippines AirAsia enough muscle to face to regional competition just before it goes public in 2018.

"We have to firmly establish our position as a truly ASEAN (Association of Southeast Asian Nations) airline. This is to prove the world that we are able to operate in all ASEAN countries, and these 3 destinations are the only missing links," Philippines AirAsia chief executive officer Dexter Comendador told reporters on the sidelines of a briefing in Taguig City on Thursday, October 19.

AirAsia Berhad is the only airline that directly serves all 10 ASEAN countries with established operations in the Philippines, Thailand, Indonesia, and Malaysia. (READ: From 2 jets to 70: AirAsia returns to its Clark roots)

Comendador told reporters that Philippines AirAsia it is eyeing to conduct its initial public offering (IPO) in the middle of 2018.

The Philippines AirAsia chief said the carrier will start flying to Ho Chi Minh on November 17. It will operate flights from Manila to Ho Chi Minh every Tuesday, Friday, and Sunday.

The budget airline will start its Manila to Jakarta on January 9, 2017, and its Manila to Bali flights starting on January 19 next year.

Aside from these 3 ASEAN destinations, Comendador said Philippines AirAsia is also looking at connecting Clark International Airport to Taipei, Korea, and China soon.  (READ: APEC 2015: AirAsia banks on Philippines after first airliner disaster)

The airline is planning to increase its fleet to 17 jets this year from the current 14 to accommodate its new operations. By 2032, the airline targets to have a total of 70 planes.

To fund the carrier's expansion plan, Comendador said Philippines AirAsia is talking to some foreign banks to plan its debut on the Philippine Stock Exchange.

Philippines AirAsia operates a fleet of 14 aircraft with domestic and international flights out of hubs in Manila, Cebu, Kalibo, and now Clark. It flies to Manila, Davao, Cebu, Kalibo, Tacloban, Tagbilaran, Puerto Princesa, Clark, Shanghai, Taipei, Incheon, Hong Kong, Macau, Kuala Lumpur, Kota Kinabalu, and Singapore. – Rappler.com