Vista Land, BPI expect interest rates to

remain low
ABS-CBNnews.com
Posted at 09/17/2012 3:37 PM | Updated as of 09/17/2012 3:37 PM
MANILA, Philippines - Business executives expect interest rates to remain at record lows,
boosting property markets and bank lending.
Vista Land chief finance officer Ric Tan said housing loans will continue enjoying single digit
interest rates.
"The economic team has signified that the low interest rate regime will continue for the
foreseable future so single digit rates on the mortgage market we expect for the next few years,"
he told ANC's Coco Alcuaz.
He dispelled fears of a property glut, saying call center workers would likely take up
condominiums, whose supply will triple in the next five years from levels seen a decade ago.
"What we're seeing so far is no glut. What you can say possibly is there could be a potential glut
if we're not able to sustain the momentum," Tan said.
Meanwhile, BPI president Aurelio Montinola said agriculture and manufacturing companies are
potential growth areas for bank lending.
"We recognize that agriculture should play a major part but just because there are opportunities
in other areas, banks today are more involved in consumer lending, housing, they're also good
priorities but I think at some point in time, people should again take a look at agriculture,"
Montinola said.
The Monetary Board left its benchmark interest rate unchanged at a record low of 3.75% at its
policy meeting last week. - ANC

Billionaires get richer, many millionaires lose

ground
Reuters
Posted at 09/17/2012 6:24 PM | Updated as of 09/17/2012 6:24 PM

SINGAPORE - Many millionaires got poorer in the last year, but billionaires did just fine, using
their heavyweight money management teams to ride out market and economic turmoil that hit
the lesser rich, research company Wealth-X said on Monday.
The ranks of people with at least $30 million edged up to 187,380 but their total wealth fell 1.8
percent to $25.8 trillion -- still a sum bigger than the combined size of the U.S. and Chinese
economies, Wealth-X said in a report.
Hardest hit globally were those in the $200 million to $499 million range, whose numbers
dropped 9.9 percent and whose fortunes shrank 11.4 percent, the World Ultra Wealth Report said,
using data for the year through July 31.
But the really, really rich got even richer as the number of billionaires rose 9.4 percent to 2,160
people and their wealth grew 14 percent to $6.2 trillion.
"Even at a billion or two billion, they have a much larger entourage, they have much more in the
way of investment advice. They certainly get the attention of every major bank," Mykolas
Rambus, Wealth-X's chief executive officer, told Reuters.
"This was the issue about that mid tier, the $100- to $500-million risk land. I don't think it
appears these guys employ enough talent to help their own portfolios plus their holding
companies to be successful."
As Europe struggles and the U.S. economy recovers fitfully, the affluent are shifting away from
speculative investments into private companies, commodities and property, said Wealth-X, a
Singapore-based firm that provides intelligence on the ultra-rich to banks, fundraisers and luxury
retailers.
Asia suffered the worst regional loss of wealth, with a fall of 6.8 percent to $6.25 trillion due to
weaker equity markets and lower export demand from the West, it said.
While wealth also shrank in Europe, Latin America and the Middle East, the rich saw their
fortunes grow in North America (up 2.8 percent to $8.88 trillion) and Oceania (up 4.4 percent to
$475 billion) -- much of that in Australia.
But Asia's rich cannot be discounted, Wealth-X said, as the fall in wealth in Japan, China and
India -- home to 75 percent of ultra high net worth (UHNW) Asians -- will reverse, based on the
strength of the region's financial systems and economies.
"Total Asian UHNW wealth is forecast to surpass the U.S. combined wealth by 2020," it said.

McDonalds left hungry by rivals, economy in

July

the Mesh Report Staff August 9, 2012 Comments (0)

By CANDICE CHOI
NEW YORK The Golden Arches are starting to lose some of their shine.
McDonalds Corp. says a key revenue figure came in flat in July, its worst showing in more than
nine years, as diners pulled back amid a rough economy. After years of outperforming rivals with
a string of popular new items, the snag also suggests competition is intensifying for the worlds
biggest hamburger chain.
The last time the global sales figure dipped for McDonalds was in April of 2003. The figure had
grown every month since then, even through the recession.
McDonalds may be underperforming the industry, which is not typical for them, said Sara
Senatore, a Bernstein analyst. She noted that Taco Bell is showing strength as a result of its
popular new Doritos-flavored tacos, with revenue at restaurants open at least a year registering
double-digit growth in the second quarter.
Burger King Worldwide Inc. and Wendys Co. are also revamping their menus and stepping up
their marketing campaigns.
In the U.S., McDonalds said its promotions failed to drive growth in July, and revenue at
restaurants open at least 13 months dipped 0.1 percent. The Oak Brook, Ill.-based company also
says it faced a tough comparison from a year ago, when it launched the mango pineapple
smoothie.
The figure dipped 0.6 percent in Europe because of weakness in Germany and several Southern
European markets. It fell 1.5 percent in the Asia Pacific, Middle East and Africa region a key
growth area for McDonalds.
Sales in Latin America and Canada, which are not reported separately, helped pull overall results
even with last year.
Overall, analysts polled by Thomson Reuters had expected growth of 2.8 percent in July.
Revenue in restaurants open at least 13 months is a key measure of a restaurant chains
performance because it strips out the impact of recently opened or closed stores. The figures are
a snapshot of money spent on food at both company-owned and franchised restaurants. They do
not reflect corporate revenue.
In economically hard-hit regions, McDonalds has been working to emphasize the value of its
meals to entice penny-pinching consumers to eat out more often. In Europe, which accounts for
40 percent of the companys business, the company said last month that guest traffic was down in
several regions during the second quarter.

McDonalds, which has more than 33,500 locations around the world, is often seen as a
bellwether for the industry. Its stock price has nearly quadrupled over the past decade and
surpassed the $100 mark late last year. But shares have since declined and closed down almost 2
percent at $87.53 Wednesday.
The company has exceeded expectations over the years by emphasizing value and evolving its
menu to keep up with changing tastes. Some of its most successful new offerings such as snack
wraps and specialty coffees have high profit margins, yet give customers a way to treat
themselves for just a few bucks.
This chain has gone through a complete metamorphosis since the early part of the 2000s, said
Jack Russo, an analyst with Edward Jones. Now McDonalds may struggle to continue delivering
the same level of growth, he said.
Instead of leading the pack as they have for so long, theyre running with the pack, he said.
Still, Russo noted that disappointing results for one month dont necessarily spell doom for
McDonalds. He noted that there was also one less Friday and Saturday in July, which likely
affected sales, and the timing of Ramadan this year could have hurt sales in the Asia Pacific,
Middle East and Africa region. And McDonalds sheer size still gives it a considerable marketing
edge over competitors going forward.
Growth might not be as fast in the future but still should be respectable, Russo said. Theres
something to be said for consistency.
CEO Don Thompson, who took the helm in July, said in a statement Wednesday that hes
confident the company will build sales over the long term.
McDonalds said it plans to restart growth in the U.S. by continuing to offer variety and new
menu items. In Europe, it said it will boost customer traffic by featuring everyday value items. In
Asia, the company has been working to offer locally relevant menu options and convenience
enhancements, such as delivery.
But there are no signs competitors will pull back on their efforts or that the economic climate
will improve. Last month, McDonalds said its net income fell 4 percent in the second quarter as
unfavorable currency exchange rates and high costs ate into profits.
Revenue at restaurants open at least a year rose 3.7 percent in that quarter, which was the slowest
growth since the fourth quarter of 2009.
A service of YellowBrix, Inc.