Philippines' Arroyo likely to step down next year

MANILA: Fears that Philippine President Gloria Macapagal Arroyo may amend the constitution to stay on in power have worried financial markets for months, but signs are now emerging that she may go quietly, analysts say.

The clearest, they say, was last week's visit to Washington where she was the first leader from Southeast Asia to hold discussions with US President Barack Obama since he was elected.

"Because Obama would never risk a photo opportunity with a leader who could ostensibly extend her illegitimate grip on power, the Obama-Arroyo meeting might be the most telling sign that Arroyo will abandon any tactic to do so," said Pete Troilo of risk consultancy Pacific Security and Assessments.