PRESS DIGEST - Philippine newspapers - Oct 10

MANILA, Oct 10 (Reuters) - These are the leading stories in Manila newspapers on Friday. Reuters has not verified these stories.

- The Office of the Ombudsman will investigate the possible involvement of Bureau of Customs officials in the smuggling of tainted China milk products into the country. (PHILIPPINE DAILY INQUIRER, BUSINESSWORLD)

- The Philippine financial system is not likely to crash like the collapse threatening its American counterpart due to the conservative and prudent stance of local banks and monetary authorities, President Gloria Macapagal Arroyo said. (THE PHILIPPINE STAR, MALAYA)

- The Moro National Liberation Front (MNLF) has joined the civil society's call for the government and Moro Islamic Liberation Front (MILF) to resume peace negotiations. (BUSINESSWORLD)

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BUSINESS

- Food and beverage giant San Miguel Corp (SMC.PS) has joined the throng of suitors interested in acquiring the country's largest and most profitable insurer, Philippine American Life and General Insurance Co (Philamlife). (PHILIPPINE DAILY INQUIRER)

- State-run Philippine Deposit Insurance Corp (PDIC) has backed a proposed measure to double the maximum deposit insurance coverage to 500,000 pesos ($10,550), alongside five-pronged reforms to strengthen its capability as co-regulator of the local banking system. (PHILIPPINE DAILY INQUIRER, THE MANILA TIMES)

- The Philippine government's outstanding debt rose 0.1 percent in July from June as it borrowed more from the domestic market, the Bureau of Treasury said in a statement. (BUSINESSWORLD, THE MANILA TIMES)

($1 = 47.39 Philippine pesos)

(Reporting by Karen Lema)