PRESS DIGEST - Philippine newspapers - July 18

MANILA, July 18 (Reuters) - These are the leading stories in Manila newspapers on Friday. Reuters has not verified these stories.

- President Gloria Macapagal Arroyo's public satisfaction rating has fallen to levels last seen during the regime of the late dictator Ferdinand Marcos in 1986, based on a survey done by independent pollster Social Weather Stations. (BUSINESSWORLD)

- Arroyo issued a new order limiting the scope of the two-year moratorium on the conversion of agricultural lands for other uses to cover just rice fields (THE PHILIPPINE STAR, PHILIPPINE DAILY INQUIRER)

- With an under-recovery of 5 pesos ($0.11) per litre for diesel, petroleum players will continue raising diesel prices in the coming weeks, a high ranking oil company official said. (THE PHILIPPINE STAR)

- The state-run National Power Corp has asked the Energy Regulatory Commission to allow it to increase its basic rate by 0.37 pesos per kilowatt hour. (THE PHILIPPINE STAR)

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BUSINESS

- The central bank raised its key policy rates by 50 basis points, tightening policy for the second month in a row to combat inflation running at a 14-year high. (ALL PAPERS)

- The country's national treasurer said it has become less likely that the government will fully use the additional foreign borrowing programme of $750 million this year (ALL PAPERS)

- The Environment Department said it expects to resolve within two weeks a dispute between a subsidiary of Australian mining giant BHP Biliton (BHP.AX) and its local joint venture partner involving a nickel production project in the southern province of Davao Oriental. (MANILA STANDARD TODAY)

($1 = 45.503 Philippine pesos)

(Reporting by Rosemarie Francisco)