PRRD urged to ‘promptly’ name next BSP chief

P hilippines’ economic journalists have called on President Rodrigo R. Duterte to “promptly” name the successor of Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr., who died of cancer Saturday, to address any market uncertainty.

“Even as we mourn, we urge President Rodrigo Duterte to ease market uncertainties by promptly filling the void with someone just as suitable and committed to the BSP’s mandate of price and financial stability — one who can hit the ground running and ensure policy continuity,” the Economic Journalists Association of the Philippines (EJAP) said in a statement on Sunday.

EJAP dubbed Espenilla, 60, as “an exemplary public servant who heeded the call of duty even when he was grappling with his own health issues”.

“Governor Espenilla’s nearly four-decade service to the country was marked by dogged banking supervision while pioneering the use of digital means to achieve financial inclusion,” it added.

The BSP chief was diagnosed with tongue cancer in November 2017.

He took time off from his work several times since then to seek medical treatment, including the one overseas last January.

He headed the BSP starting July 3, 2017 after the end of the two six-year terms of BSP Governor Amando Tetangco Jr.

Prior to this, he was Deputy Governor responsible for the central bank’s Supervision and Examination Sector, which oversees banks and non-bank institutions.

BSP’s policy-making Monetary Board, in a special meeting Saturday, “designated Deputy Governor Almasara Cyd Tuano-Amador as BSP Officer-in-Charge effective immediately until such time that Duterte shall have designated an OIC or appointed a successor”.

Espenilla graduated magna cum laude with a Bachelor of Science degree in business economics from the University of the Philippines.

He also had a master of science degree in policy science from the Graduate Institute of Policy Science in Tokyo, Japan.

He is survived by his wife, Maria Teresita Festin Espenilla; daughter, Jacqueline Joyce and son-in-law, Ben Baltazar; sons Nikko Nestor and Leonardo Nestor; and, grandchild, Zev Eron.

Relatively, Voyager President and Chief Executive Officer Orlando B. Vea said Espenilla’s death “is a sad day for the country and the financial services industry”.

He described Espenilla as a “humble public servant, progressive central banker, and relentless champion of financial inclusion”.

“His legacy lives on in every effort that we all do to serve the unbanked, uncarded and underserved Filipinos with digital financial services,” he added. OMAHA, Neb. (AP) — Warren Buffett’s company recorded a $25 billion loss in the fourth quarter because of a big drop in the paper value of several of its stock investments.

Buffett said Saturday that Berkshire Hathaway’s businesses are performing well overall, but it has to record the market value of its stock holdings at the end of each quarter and Buffett has struggled to find attractive acquisitions recently. Berkshire lost $25.4 billion, or $10.31 per Class B share, in the quarter. That’s down from last year’s profit of $32.6 billion, or $13.19 per B share.

The biggest drop in the value of Berkshire’s investments was a $3 billion write off it recorded on its Kraft Heinz stake. Berkshire controls roughly 26 percent of that food maker run by the Brazilian firm of 3G Capital, which is known for its tight cost controls.

Edward Jones analyst Jim Shanahan said the question now is how much Berkshire wants to continue working with 3G Capital, which it teamed up with to buy Kraft and Heinz. Shanahan said the Kraft Heinz investment hasn’t paid off as much as initially hoped, and now some question whether 3G’s lean operating model can prosper at a consumer goods company that needs significant marketing investments. “I think this relationship has permanently soured,” Shanahan said.

In the fourth quarter, Berkshire’s revenue grew to $63.7 billion, up from $58.8 billion in 2017.

Buffett has long said Berkshire’s operating earnings offer a better view of quarterly performance because they exclude investments and derivatives, which can vary widely.

By that measure, Berkshire reported operating earnings of $5.7 billion, or about $2.32 per B share. That’s up from $3.3 billion, or about $1.35 per share.

The five analysts surveyed by FactSet expected Berkshire to report operating earnings of $9.58 per share for the full year. Berkshire reported operating earnings of $24.8 billion, or about $10.05 per B share.

Berkshire said its 2018 revenue grew to $247.8 billion, up from $239.9 billion the previous year.

Shanahan said the operating earnings appeared solid, but he was disappointed Buffett didn’t find more ways to use Berkshire’s roughly $130 billion in cash and short term investments.

Berkshire’s BNSF railroad added $5.2 billion to the company’s net income last year, up from $4 billion the previous year.