The Losing Power of the Pinoy Peso-- Again!

[uls]

Ya they have already outsourced production to China and Taiwan and other countries years ago

they have already outsourced call center work and other back office work to the Phils and India

and they are still on the verge of bankruptcy

US companies are coming out with profit warnings for the coming months

they have problem paying their loans

they might default on their debt (corporate bonds)

they don't have money coming in the door (consumers arent spending)

let's see what happens in the first 3 month of 2009

Obama is gonna come out with a stimulus package

[jpdm]

Its seems the government through BSP is bent on not allowing the peso to slide down further.....

[uls]

the BSP would definitely try to defend the peso

peso losing value = increased debt servicing

[uls]

weak peso?

we have an expanding trade deficit

MANILA, Nov 26 (Reuters) - Philippine imports rose 2.5 percent in September despite a fall in purchases of electronics parts, which reflects the sharp slowdown in the country's biggest export item. Electronics purchases, which make up over one-third of all imports, fell 26.1 percent year-on-year in September while cereal and cereal preparations imports surged 241.5 percent. Electronics imports mainly comprise parts used as inputs for semiconductor exports and the sector is feeling the effects of a slowdown in U.S. demand that is contributing to a rising trade deficit. The Philippines had a trade deficit of $425 million in September and a deficit of $6.419 billion in the first nine months of the year. The nine-month trade deficit is the highest in three years.

[tidus1203]

At the end of the day exports is only good if you can sell it, meanwhile our imports don't stop

[uls]

cereal and cereal preparations imports surged 241.5%...

Tidus, malakas ka ba sa breakfast cereal these days?

[tidus1203]

Na. I prefer bread and oats for breakfast and I am sure they are local But I do prefer imported clothes and shoes

[Gen. Miting]

They have already outsourced everything that can be outsourced and they are still in trouble.

what is there left to outsource? Their core businesses?

if their business activity gets cut in half, they wouldnt have that much work to outsource.

cost cutting? reduce BPO expenses. that's cost cutting.

who said they will move outsourcing work back to the US?

There's no work to move back to the US. Business activity has vanished.

When times were good, you bought a mansion, and you need 10 household staff just to maintain the place...

then you fall into hard times, and move into a tiny apartment, and you no longer need the 10 staff

anyway, no point in arguing

it's all speculation

we'll see in the coming months

*uls, i'm a night owl. usually, i'm still roaming the roads 11pm to 2am.

my meter for BPO activity is Mcdonald's and Jollibee. actually Mcdo lang talaga. Mcdo just opened their newest and sleekest store in Frontera Verde Tiendesitas. sometimes I eat a slice of cake in their Mc Cafe at 1am.

if one will observe Mcdo emps uniforms nowadays, it has a big 24 hour open sign at the back. so what can I read from this? Mcdo is bent on dominating the 24 hour fast food joint.

now why open in tiendesitas whereas the rest of the Ortigas elite are sleeping (valle verde, green meadows etc)? there is now a call center inside tiendesitas. even tiendesitas gates are open 24 hours na.


let's say I have a BMW with gps ...

if I position myself in front of Medical City Ortigas at 11pm on a gps map and scan a 5km radius, I will see 4 successful 24-hour Mc Donald's. eastwood, tiendesitas, shell station meralco, el pueblo.

imagine all that investment for a burger joint (and selling the same menu) with less than 5km distance with each other. i'm just wondering what the Mcdo execs are seeing that most of us are failing to see. Mcdo is an american company ...

[uls]

what u are observing is the present time.

i'm talking about looking forward a year or more

i'm not saying the Phil. BPO industry will slow down considerably

i'm just saying i doubt that the BPO industry will keep on EXPANDING in this global crisis.

again, speculation lang

we will see.

[Gen. Miting]

i'm not really observing the present time bec. as you can see Mcdo is investing a lot of money on burger joints that's worth more than 20M to build and that's excluding the investment on the lot that they are build upon. hindi naman siguro nila mababawi ito in 3-5 years.

====

now, let's scan world events. India is under attack. world politicians, businessmen, investors are caught with their "pants down" in some of the most luxurious places in Mumbai. I believe some of them even died na. there is even a group of european lawmakers almost held hostage.

the question is why were all they there in the first place? what is so enticing in India in the midst this global crisis, that they have to make a "geneva" like convention of India's capital city.

China's factories are closing, chinese laid off.
Americans are losing credit, americans laid off.
Europe even with a stronger euro and doing their homework by adopting diesel efficient small cars and other efficiencies since the past decade, suddenly find themselves part of the domino that is the US today.

but India ... exotic india became a meeting ground of the world's elite or at least, their proxies. the situation was so intense that even India's counter-terrorist chief got eliminated before the full invasion.

what is India before the attacks? yun ang tanong hehehe. pero siguro after what happened, India will be back to square one. why? they just sent a message to the whole world that they cant protect their capital city, what more their investments and investors.