PRESS DIGEST - Philippine newspapers - Aug 6

MANILA Aug 6 (Reuters) - These are the leading stories in Manila newspapers on Thursday. Reuters has not verified these stories.

- Filipinos turned out in the tens of thousands on Wednesday, braving heavy rains and a long wait, to bid farewell to former President Corazon Aquino, who was laid to rest beside her slain senator husband in Manila. (ALL PAPERS)

- East Timor president Jose Ramos Horta broke protocol by attending the private funeral of Aquino, saying he was very impressed and touched by the outpouring of public affection for her. (PHILIPPINE DAILY INQUIRER)

- The leader of the opposition said the government of President Gloria Macapagal Arroyo should interpret the outpouring of grief over the death of Aquino as a warning that it faces a political upheaval should it push through with its agenda of staying in power beyond 2010. (MALAYA)

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BUSINESS

- The expected strengthening of the dollar may push the peso exchange rate to 50 by the end of the third quarter, aggravated by concerns over the possible rise in the cost of government borrowings, according to a study by DBS Bank. (PHILIPPINE DAILY INQUIRER)

- Inflation fell to a 22-year low of 0.2 percent in July from a year earlier as price increases for food and other commodity items continued to slow. (ALL PAPERS)

- Central bank governor Amando Tetangco said he would not be surprised if the country's foreign reserves hit $40 billion in July due to a combination of strong dollar inflows from remittances, earnings of business process outsourcing companies, and stock market investments. (MANILA STANDARD TODAY)

($1 = 47.84 Philippine pesos)

(Reporting by Rosemarie Francisco)