Residents struggle to navigate the floods caused by typhoon Ulyssess in Rodriguez, Rizal. — PHILIPPINE STAR/MICHAEL VARCAS

DAMAGE CAUSED by the recent string of typhoons and massive floods is estimated to shave 0.15 percentage point off the already grim gross domestic product (GDP) outlook for the year, preliminary estimates by the National Economic and Development Authority (NEDA) showed.

NEDA Undersecretary Rosemarie G. Edillon estimated the five typhoons that struck the country this quarter — Pepito, Quinta, Rolly, Siony and Ulysses — may have caused P90 billion in output losses so far, or equivalent to a reduction to the full-year GDP by 0.15 percentage point.

The economic team is currently reviewing its forecast of a 4.5-6.6% drop in GDP this year, after the economy contracted by 10% in the first nine months.

In an online briefing, Ms. Edillon said initial estimates showed the damage caused by Typhoon … Read the rest

The Canadian dollar traded higher overnight, lifted by AUD/USD and NZD/USD gains. The antipodean currencies rallied on improved global risk sentiment. The Chinese yuan continued to trade higher, and that development raised expectations for a trade fueled, global economic rebound, on the heels of a successful COVID-19 vaccine.

There is a danger that markets may be getting too far ahead of themselves. A coronavirus vaccine won’t be readily available till some time in the late spring, and that doesn’t necessarily mean that an effective distribution mechanism will be in place. More immediately, new COVID-19 cases continue to rise or remain stubbornly high in Ontario, Quebec, Manitoba, as well as in the U.K., Europe, and the U.S.. The impact of measure to contain the virus will negatively effective short-term economic growth, and it is hard to see the current “risk-rally” lasting.

The British pound continues to grind higher on anticipation that … Read the rest

S&P Global Ratings expects the Philippine economy to shrink by 9.5% this year, before growing by 9.6% in 2021. — PHILIPPINE STAR/MIGUEL ANTONIO N. DE GUZMAN

A DEEPER-THAN-EXPECTED recession in the Philippines will increase the downside risks for the banking industry, S&P Global Ratings said.

“This year’s recession is likely to impair the debt-servicing ability of consumers, small businesses, and leveraged companies. The extent of the impact on banks depends on the economic recovery and stabilization of credit conditions in 2021,” S&P analyst Nikita Anand said in a note on Tuesday.

Ms. Anand said Philippine banks are facing a negative economic risk trend, as the economy remained in a recession in the third quarter. Gross domestic product (GDP) shrank by 11.5% in the July to September period, slightly easing from the record 16.9% decline in the second quarter as lockdown restrictions gradually loosened amid the coronavirus disease 2019 (COVID-19) pandemic. Read the rest

The Canadian dollar, like the rest of the G-10 FX major currencies, traded in relatively narrow ranges in a somewhat subdued overnight session.

The euphoria about possible coronavirus vaccines started to fade in Europe, with the top equity indexes all posting losses at the Toronto open. Traders continue to keep a cautious eye on the elevated U.S. coronavirus cases and talk of measures to slow the rise, as well as the fall-out from the U.S. election.

GBP/USD is trading at the top of its $1.3194-$1.3255 range, underpinned by Brexit rumours and headlines. The U.K. Express reported that Prime Minister Boris Johnson was told by Chief Negotiator David Frost to expect a trade deal by next Tuesday. A contradicting report in another paper claimed that France would veto any deal unless the fishing rights issues were resolved in its favour. The short-term GBP/USD technicals are looking for additional gains above $1.3280 … Read the rest

CASH REMITTANCES rebounded in September, as overseas Filipino workers sent more money to help families weather the coronavirus crisis. — REUTERS

By Luz Wendy T. Noble, Reporter

CASH REMITTANCES from overseas Filipinos rebounded in September, growing at the fastest pace in more than two years after a decline in August.

Cash remittances coursed through banks jumped by 9.3% to $2.601 billion in September from $2.379 billion a year ago, data released by the Bangko Sentral ng Pilipinas on Monday showed. This was the quickest growth in remittance inflows since 12.7% in April 2018.

Month on month, cash remittances also rose by 4.8% from  $2.483 billion in August, when these dropped by an annual 4.1%.

The BSP reported a 10.2% rise in remittances from land-based overseas Filipino workers (OFWs) to $2.031 billion, and a 6.5% jump in money sent by sea-based workers to $570 million.

“The year-on-year comparison benefited from a Read the rest

Shares of Dollarama Inc (TSX:DOL) are up 11% this year, well above the TSX’s 3% decline over the same period. The dollar store chain is an appealing investment especially amid a recession and when consumers are on tighter budgets.

In its most recent quarterly results, for the period ending Aug. 2, the retailer reported solid sales growth of 7.1%, reaching $1.0 billion. Its comparable store sales grew at a rate of 5.4% (when excluding temporary store closures), and even when including all stores, the growth rate was still a positive 2.5%. President and CEO Neil Rossy stated that “our sales were strong, driven by the demand for summer seasonal items, and store traffic improved with each month as provincial reopening plans unfolded.”

The company is scheduled to release its third-quarter results on Dec. 9

Currently, the stock’s trading at a forward price-to-earnings multiple of 18 and a price-to-sales ratio of … Read the rest

* This weekend's Barron's cover offers a low-risk strategy for investors optimistic about an ecomomic recovery. * Other featured articles discuss what a COVID-19 vaccine would mean for the stock market and how it could shake up the pharmaceutical industry. * Also, the prospects for semiconductor stocks, a leading retailer, a financial services giant and more."A Low-Risk Strategy for Those Optimistic About a Recovery" by Daren Fonda suggests that small companies typically outperform over the long term, even more so at the beginning of an economic rebound. With a coronavirus vaccine on the horizon, Barron's believes Acme United Corporation (NYSE: ACU) is among the small cap stocks worth a look.Max A. Cherney's "Intel Can Shine Again" looks at how repeated manufacturing delays have dented the reputation of chip giant Intel Corporation (NASDAQ: INTC). In addition, Apple now has ditched Intel's products. Discover why Barron's thinks the stock is down but … Read the rest

By Luz Wendy T. Noble, Reporter

BENCHMARK policy rates will likely be maintained by the Bangko Sentral ng Pilipinas (BSP) on Thursday, with the financial system seeing excess liquidity and an anticipated pickup in state spending, according to analysts.

Some analysts, however, pointed to the sluggish pace of recovery and benign inflation as signs there is still room for the central bank to further cut rates.

In a BusinessWorld poll held last week, 11 out of 16 analysts said the Monetary Board (MB) will likely continue the “prudent pause” at its sixth policy meeting on Nov. 19.

The central bank may consider the difficulty of unwinding “excessive” monetary easing once recovery starts, said Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr.

BSP Governor Benjamin E. Diokno has vowed to carefully assess the timing of the rolling back of aggressive policy measures taken during the Read the rest

Stocks throughout North America finished Friday much the way they started it, with booming gains pretty much up and down the board.

The TSX recovered 93.46 points to close Friday at 16,675.64. On the week, the index vaulted 392 points, or 2.41%.

The Canadian dollar backtracked 0.03 cents to 76.08 cents U.S.

Health-care stocks carried much of the load Friday, with Trillium Pharmaceuticals picking up $1.96, or 10.6%, to $20.43, and Aphria triumphing 37 cents, or 5.2%, to $7.50.

Energy stocks were the next largest gainer, with Husky Energy up 21 cents, or 4.9%, to $4.51, while Cenovus Energy gained 25 cents, or 4.7%, to $5.62.

In the consumer discretionary sector, Linamar Corp. improved $1.69, or 3%, to $58.15, while Spin Master Corp. advanced 82 cents, or 2.7%, to $31.15.

Consumer staples, particularly grocers, did not fare so well, as Loblaw dumped $1.90, or 2.8%, to $65.70, while Empire Company … Read the rest

(Bloomberg) — Natural gas producer Gulfport Energy Corp. filed for bankruptcy, joining a slew of U.S. energy companies that are collapsing after the global pandemic deepened their struggle with low prices and too much debt.The Oklahoma City-based driller filed a Chapter 11 petition on Nov. 13 in U.S. Bankruptcy Court in Houston, declaring an estimated $2.5 billion in liabilities as of Sept. 30.Gulfport, which produces gas from fields in Ohio and Oklahoma, was grappling to stay afloat even before Covid-19, after a series of acquisitions over the past decade left it too indebted to weather the energy rout. Following pressure from activist investor Firefly Value Partners to change its board, the company on Aug. 7 warned it might not be able to stay in business if it failed to refinance its debt.Many investors have shunned producers operating outside of the Permian Basin of West Texas and New Mexico, the most … Read the rest