In our view, if the state of emergency is short-lived, then it should not have a measurable impact on economic activity and thus preserve the gains from the fiscal reform effort, which is the cornerstone of the positive view toward the Philippines.
We think that foreign buying, which has been a key support for the market, may dry up until the state of emergency is lifted.
In the early part of 2005, people were talking about the Philippines being the next Argentina. People aren't talking about that scenario anymore.
