Manila, Metro Manila, Philippines (AHN) – Car sales in the Philippines went up 29 percent in the first 11 months of 2010. According to the Chamber of Automotive Manufacturers of the Philippines, 153,163 units were sold from January to November.

For the same period last year, only 118,848 vehicles were sold.

CAMP President Elizabeth Lee said because of the strong sales, the chamber is confident 12-month sales would exceed their target of 162,000 units.

The last time that number of cars was sold across the country was in 1996.

Lee attributed the fast pace of auto sales to high business and consumer confidence from the peaceful May national elections and the entry of a new administration. The confidence spilled into the second half of the year, she said.

Lee added that auto sales also were boosted by attractive financing packages from car makers and financial institutions and strong remittance from overseas Filipino workers.

The Bangko Sentral ng Pilipinas confirmed the improved consumer confidence. According to the central bank’s fourth quarter survey, the consumer confidence index rose to minus 8.5 percent from minus 14 percent in the 3rd quarter.

However, the index continued to stay in negative territory because there were more pessimists than optimists, particularly among the low-income group.

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Dublin, Ireland, United Kingdom (AHN) – Financially challenged Allied Irish Banks is scheduled to give $50 million (EUR 40 million) bonuses to bank officers despite the company being a possible recipient of another bailout from the Irish government.

The bonuses, amounting to $214,328 (EUR 161,000) for each of 2,400 bankers in the Dublin capital markets division, are part of a court award in 2008. The bonuses are scheduled to be given Dec. 17.

Because of the AIB situation, European banking regulators were scheduled to meet in London Thursday to come up with new rules applicable within the regional bloc on payment of bonuses amid financial crises. The rules propose to defer paying the bonuses over three years and forfeiting the payments if the banks suffer more losses.

AIB is 19 percent owned by taxpayers, but the government share is expected to go up to 95 percent after the Irish central bank required AIB to raise another $6.9 billion (EUR 5.2 billion) by the end of February. The amount will likely come not from the private sector, but from the $113 billion (EUR 85 billion) bailout from the International Monetary Fund and the European Union.

AIB investors, including some of the world’s largest fixed-income pension and insurance funds, are scheduled to meet Friday to discuss a possible lawsuit against the Irish government if the bank will be required to reduce again the value of subordinated debts issued by AIB.

Investors who held Tier 1 and Tier 2 bonds in AIB agreed in June 2009 to trade in these bonds for a new issue of lower Tier 2 debt. The move caused investors to lose 33 to 50 percent of their investments’ face value.

The investors warned that if they were forced to another round of swap, many pension funds, insurers and main fixed-income funds would shirk from Irish paper in the future for a long time.

Subordinated debt investors have filed similar legal cases against the Anglo Irish Bank and Irish Nationwide, but with little success.

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Ottawa, Ontario, Canada (AHN) – Economists agree that the Bank of Canada will likely keep interest rates at its present level until July 2011.

They believe that Bank of Canada Governor Mark Carney will wait for developments in the U.S. economy and the eurozone.

The Canadian central bank is expected to release its decision on the key lending rate on Tuesday after the monetary board meeting.

The current key lending rate is still a low 1 percent. The governor kept it at that level due to uncertain economic conditions and a lower-than-expected third quarter growth rate due to weak trade and real estate investments.

The fixed-income markets predict 50-50 odds that the Bank of Canada will increase key lending rates in March and 100 percent chance in April.

According to the C.D. Howe Institute, the central bank should keep benchmark interest rates on Tuesday and on Jan. 18. It also forecast that by July next year the key lending rate should not exceed 1.5 percent.

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London, England, United Kingdom (AHN) – Because of Britain’s commitment to help bail out European Union countries facing financial difficulties, British families could have to shell out $1,050 (GBP 700) as their share despite already having to tighten their own belts.

The $1,050 is on top of yearly contributions of Britain to the EU and a potential UK liability of $60 billion (GBP 40 billion) for the eurozone bailout.

However, assurance of an international bailout to Ireland and Greece has not placated the markets, as the contagion has started to spread to Portugal, Spain and Italy. On Wednesday, borrowing costs for Portugal went up to 5.3 percent from 4.8 percent two weeks ago for buyers of the $627 million (GBP 418 million) 12-month Portuguese bonds on the table.

After the auction, ratings agency Standard & Poor’s warned Lisbon it may cut Portugal’s credit rating. By evening, S&P placed Portugal’s debt on negative credit watch and said it may further downgrade Lisbon’s A-minus rating in three months.

The worsening currency crisis has prompted the U.S. Treasury to send a representative to Europe this week to sit down with the governments of German, Spain and France.

The nervousness of the markets over the situation in the eurozone has fueled speculation that the European Central Bank could increase the bailout funds, which would translate into higher costs and liabilities for EU residents.

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