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Paris Fashion Week: Saint Laurent offers fresh shapes and bright fabrics

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Chanel riffs the black bow; LV shows strong shoulders; slick leather at Hermes; Beckham shows curled hems; Stella McCartney’s feminine power suits; Dior’s ruffles

PARIS — Anthony Vaccarello, creative director of French fashion house Yves Saint Laurent, showed a runway lineup of evening-appropriate minidresses in bright colors and round, voluminous gowns, capping over a week of fashion shows in Paris.

Held near the Eiffel Tower after nightfall, the first model marched out on towering sling-back heels, her hands thrust deep into the pockets of a short dress in bright, marigold orange. The shoulders were broad and the sleeves were wide, while a tall collar rose to the model’s jaw line. Similar silhouettes followed, in colors like fuchsia, teal or yellow. (See the show here: https://www.youtube.com/watch?v=gqOeWBxN4_Q)

“Instead of speaking through ornament or padding, fabrics and precise construction shape the garments,” the Kering-owned label wrote in notes about the winter collection.

Partway through the show, the focus on volumes suddenly shifted to below a dropped waist, with a series of silky slip dresses that ballooned into hulking, rounded shapes that floated down the runway.

There were also trim, transparent dresses in a lightweight silicone fabric, with leopard or floral prints. Model Bella Hadid paraded a bright blue dress in stretchy lace.

Front row guests included famous Parisians Betty Catroux, Catherine Deneuve, Carla Bruni and Charlotte Gainsbourg.

CHANEL
Trim, tweed tailored suits and flowing dresses adorned by decorative black bows showcased Chanel’s fall-winter runway collection in Paris. (See the show here: https://www.chanel.com/us/fashion/collection/fall-winter-2025-26/ )

Under the soaring glass-and-steel dome of the Grand Palais, models strode through a sparse set, built around an enormous black ribbon sculpture curling up into the air.

Kicking off the show were suit jackets and mini-skirts or shorts in tweed, all in monochrome, some covered by dresses or skirts in sheer fabric with extra ruffles emphasizing the hem.

Black bows embellished the looks, whether tied under the neck, worn as hair attachments or fixed to brimmed hats, skirts or thick-heeled boots.

Moving away from the strict palette of black and ivory, the French fashion house also showed chunky knits in raspberry or mint green and a red tweed ensemble in the form of a bustier minidress, trousers and over-the-elbow gloves.

There were also glossy, black overcoats, oversize pearl accessories and a puffer jacket — distinctly Chanel, with rows of bows.

Chanel fans are awaiting the arrival of Matthieu Blazy, who fills the high-profile designer role left vacant since the departure of longtime Karl Lagerfeld collaborator, Virginie Viard, last June.

Blazy, whose first show will be in October, is credited with the recent success of Kering-owned Bottega Veneta.

LOUIS VUITTON
Louis Vuitton designer Nicolas Ghesquiere brought his Paris audience to the Gare du Nord for his fall-winter runway presentation, showing an eclectic and futuristic mix of styles that featured 1980s-flavored shoulders and scrunched boots along with a wide array of handbags.

Models marched through rows of seated guests as if charging through a bustling train station — only they were just across the street from the Paris train station, in an indoor courtyard. (See the show here: https://eu.louisvuitton.com/eng-e1/magazine/articles/women-fall-winter-2025-show )

The first model wore bright red trousers with a gathered, elastic waist, cinched at the ankles and paired with a colorful blouse that was covered with a smoky, translucent raincoat. Her hair was teased out, brushed mostly to one side.

Other sporty looks followed, including nylon jackets with hoods and zippered pockets that contrasted with dressier styles like lacy slip-dresses and skirts with piles of ruffled layers.

The LVMH-owned label, which welcomed guests with a clip from Kraftwerk’s “Trans-Europe Express” on repeat, added images from the album cover to some looks.

At the end of the show, French First Lady Brigitte Macron leapt out of her seat to embrace Ghesquiere. Macron, who sat alongside the family of LVMH CEO Bernard Arnault, is known to wear Vuitton for official outings.

HERMES
Hermes Nadege Vanhee presented a fall-winter 2025 collection of glossy coats, dresses, and trousers in dark-colored leather on Saturday, showing the sleek styles on a dirt-covered runway in Paris. (See the show here: https://www.hermes.com/us/en/content/338474-women-fall-winter-2025-runway-show/ )

Held at the Garde Republicaine, the sprawling stables of the French capital’s mounted gendarmes or police, the fashion house built a set with curved walls that resembled a Richard Serra sculpture — but were covered in brown felt.

Attendants raked the catwalk before the start of the show and the models strode out in riding boots, the toes stretched out into points, their silky hair bouncing.

They paraded skirts and micro shorts with tassels, a cropped jacket with quilted panels and long coats lined with felted wool, zippers running down the back — all of it in leather.

Extra layers came in the form of ribbed knit gloves that covered the arm and piles of sweaters worn like scarves around the neck and cinching outerwear. Contrasting with the mostly all-black looks were a few styles in beige, a brown marbled pattern molded into a fitted dress and a coat and trouser ensemble in bright green leather.

VICTORIA BECKHAM
Victoria Beckham showed a line-up of sleek, monochrome looks featuring curled hems and collars for her fall/winter catwalk outing, held in a stripped-down building in the center of Paris. (See the show here: https://www.youtube.com/watch?v=pZ_XJ5HwxgA

. The show itself starts at the 40-minute mark.)

Models marched steadily through the bare set in square-toed shoes — some flat, others with spiked heels — parading minimalist suits with long lapels that stretched down below the navel, tapered trousers, shoulder-baring dresses and long overcoats.

There were mini dresses, overcoats, and suit jackets with striking, rolled-up hems, while sweaters and jackets had collars similarly curled up at the neck.

Long, fluid dresses were trim, snug at the waist, contrasting with an elegant, bulked-up leather coat in taupe, worn like a minidress. Completing the looks were thick, curvy glasses and roomy tote bags.

After the finale, which was accompanied by a melancholy soundtrack, Beckham walked out for her bow and blew a kiss to her audience. Her family was seated together in the front row.

STELLA MCCARTNEY
Stella McCartney drew her audience to an office building for her namesake label’s winter 2025 runway outing on Wednesday, showing a feminine line-up of power suits with low waisted trousers and broad-shouldered jackets along with glittering eveningwear. (See the show here: https://www.youtube.com/watch?v=VFhJDcXpHnA

Guests including French First Lady Brigitte Macron, actor Cameron Diaz and designer and movie producer Tom Ford were greeted on an upper floor with a sweeping view of the outskirts of Paris and a packet of sticky notes on their seats, which were arranged around desks, water coolers, and hulking copy machines.

Model Natalia Vodianova opened the show, wearing an all-grey ensemble — a double-breasted jacket, paired with glossy boots that rose above the knees and matching gloves, her hair pulled into a neat ponytail. Adding texture, thick, hooded sweaters, jeans and suits embellished with tassels and elaborately draped minidresses followed.

“I was thinking the best of, the best of, the best of,” Ms. McCartney said after the show, noting she sought to relay her label’s day-to-night designs for her first show as an independent designer.

Ms. McCartney, who famously does not use leather or fur, in January announced she was repurchasing LVMH’s minority stake in her label, but continues to advise LVMH on sustainability matters.

“It’s just always been the goal, always the dream, and it’s the right time,” she said of the split.

For last week’s show, which featured pole dancers performing in sparkling leotards, Ms. McCartney said she wanted to put the spotlight on exotic dancing — rather than exotic skins, the use of which has “just got to end.”

DIOR
Christian Dior creative director Maria Grazia Chiuri presented a lineup of ruffled styles for the French fashion house’s fall-winter runway show, set to a dramatic backdrop of fiery meteorites, smoking icebergs, and a giant, prehistoric bird. (See the show here: https://www.youtube.com/watch?v=7vIiT07fMn8  )

The set was orchestrated by American director Robert Wilson, who sent models marching through changing scenery — under hovering rocks, pointy mountains of ice and across a striped runway.

They wore sharp-tipped boots, tailcoats and bustiers worn like shields, with knee-high socks, hair pulled into ponytails tucked into the clothing.

Ruffled collars, lace and sheer fabrics added softness to the designs, which included references to past creative directors, including a T-shirt marked “J’adore Dior” in a nod to John Galliano.

Held in a temporary structure set up in the Tuileries Gardens of the Louvre Museum, the show drew crowds and screaming fans angling for a view of celebrities, who included K-pop group Blackpink’s Jisoo.

At the end of the show, the models returned to the stage in pairs, and paused, facing the audience as feathers floated from the ceiling.

When the models left, the spotlight lit one of the entrances, and Chiuri emerged for her bow, prompting cheers from the audience. — Reuters

ABP Group enters Manila, citing urgent cybersecurity needs

PHILIPPINE STAR/ MIGUEL DE GUZMAN

ABP GROUP, a Singapore-based cybersecurity provider, has opened an office in Manila, citing the Philippines’ rapid digital growth and the urgent need for stronger cybersecurity frameworks. 

“The Philippines is experiencing rapid digital growth, and with that comes the urgent need for stronger cybersecurity frameworks,” said Sun Yi, chief executive officer of ABP Group, in a statement.

“We are excited to bring our expertise to the market, working alongside businesses and institutions to enhance their security posture and ensure the Philippines’ resilient digital future.” 

About 41% of Philippine businesses cited the lack of cybersecurity experts as the top challenge in addressing cybersecurity threats, according to a joint report by cybersecurity firm Fortinet and the ASEAN Innovation Business Platform (AIBP). 

ABP Group provides security solutions tailored to address risks in the evolving threat landscape.

Sunnic, a technology company under ABP Group, offers advanced cryptographic solutions to secure critical infrastructure for banks, governments, and enterprises.

“With a strong focus on post-quantum cryptography (PQC), Sunnic provides expert advisory services to help organizations develop and implement robust data and identity protection strategies.”

ABP Cyber delivers end-to-end solutions spanning security design, integration, and intelligence-driven managed security.

ABP Securite, a value-added distributor (VAD), specializes in cybersecurity and network performance.

“By providing cutting-edge solutions alongside expert professional services, maintenance and support, and cloud administration, ABP Securite optimizes IT infrastructures, enabling businesses to enhance security, improve performance, and future-proof their digital operations.”

In the last six months of 2024, organizations in the Philippines faced an average of 4,003 cyberattacks per week, exceeding the Asia-Pacific average of 2,870, according to cybersecurity solutions firm Check Point Software Technologies Ltd. 

“With a strong presence across Asia, ABP Group brings to the Philippines its specialized business entities, each playing a crucial role in fortifying digital security,” it said. — Beatriz Marie D. Cruz

I dreamed a dream: A BSP decoupling from the US Fed funds policy

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The Bangko Sentral ng Pilipinas (BSP) paused the reduction of the benchmark rate at 5.75% in the first policy meeting last month. No surprise here, after the US Federal Reserve Board (Fed) paused its Fed Funds rate at 4.50% in January. The slew of monetary easing by the Fed since September 2024 came to a halt. But the growth rate of the Philippine economy slowed down to 5.6%, lower than the rosy average 6% of official and private forecast, and the inflation rate at 2.10%, the expectation was more easing. But the BSP paused the easing trend for fear of reducing the gap between the Fed funds rate and the BSP policy rate which could bring about capital flight from Philippine papers to US Treasuries.

The US Fed entertains more goals in its Fed fund rate decisions than does the BSP. Foremost among US Fed goals is that the US dollar being a global reserve currency, the Fed must maintain an attractive return to its investors in US Treasuries to stem the de-dollarization trend. That is how the USA raises the wherewithal to finance its trade deficit.

The BSP, by contrast, is concerned primarily with price stability and, with that achieved, secondary goals like economic growth and poverty reduction may be entertained. I don’t totally agree with this hierarchy of goals but that is the law. Price stability is the metric for which the BSP governor can be summoned by the Congress to account if inflation meanders too much higher than expectation. On the other hand, if the BSP policy rate violates the acceptable risk premium between itself and the Fed funds rate (5.75% – 4.50%), we risk being placed in the rear-view mirror of arbitrage chasing portfolio investors and disruption in the stock market. Thus, we run the risk of missing our own county-specific targets, say the growth of poverty reduction target, if we slavishly follow the Fed funds rate movement. Our monetary authorities have made the threat of adverse arbitrage response the tail that wags our monetary policy.

It is reassuring though that BSP is aware of the tradeoff of piggybacking our monetary policy to that of the US Fed. This is the subject of the HSBC Global Research report authored by Aris Dacanay and Lenny Jin. It reported that the BSP Governor admitted that the pause in monetary easing was a decision that they took very seriously precisely because it could be easily construed as humoring vulture capital profit over growth of the economy and poverty reduction. That is not a reason to call the BSP Governor to account. But the Governor admitted that it may resume monetary easing when the “clouds of uncertainties clear.” That resumption unfortunately could be a long way off.

With the onset of US President Donald Trump’s second term — which includes the “total reset” waged against the overreach of DEI (diversity, equity, and inclusion) policies of the previous administration, the weaponization of monetary and trade policies as the posture of the MAGA (Make America Great Again) Republicans, the overtures for the US takeover of Gaza, Canada, the Panama Canal, and Greenland, and the resulting retaliation and walk-back frenzy — the world has just stepped into the uncharted territory of the non-ergodic universe where uncertainty is Knightian or Keynesian. In the familiar ergodic universe we have become used to, the states of the world are known or knowable and the governing probability distributions are well-defined though still to be revealed. To say it mildly, the state of the world in 2025 has turned Hobbesian (from Thomas Hobbes’ Leviathan) and our best course of action is to keep our guns loaded and our powder dry. With the deployment of aggressive weaponization of foreign and trade policy echoing the trade war that deepened and prolonged the Great Depression in the early 1930s, we no longer know who our friends and who our enemies are. Canada is rewarded with a warlike 25% tariff for its friendship and lasting loyalty; Australia is being enveloped in the fallout. Kissinger’s oft-repeated quip has now become the norm: “To be an enemy of America is dangerous, to be its friend is fatal!”

Since we opened our capital account in the early 1990s, ostensibly to improve our performance in attracting foreign investment, the Philippines’ monetary arena have become a playground for the disruptive vagaries of arbitrage chasers. Then Prime Minister of Malaysia Mahathir Mohammed declared a war against these speculative vultures in 1998 to the great outcry of arbitrage chasers and their neo-liberal allies (led by George Soros). Mahathir of course pushed the capital control pedal to the metal to frustrate arbitrage chasers. The verdict, so condemnatory of Mahathir in 1998, has slowly heaved in favor of Mahathir over Soros.

In National Bureau of Economic Research (NBER) Working Paper #30944, Paul Bergin and others using data for 45 countries from 1985 to 2019, found that strategic capital account policies (capital controls) combined with reserve accumulation policies associate positively and strongly with growth in real GDP and TFP (total factor productivity). It appears that the presence of tight capital controls results in a one-to-one correspondence between the growth of reserves and the level of net exports which requires the expansion of the traded goods sector and which has a knock-on effect on TFP.

Our own experience with capital account liberalization is that while we attracted a tons of portfolio investment and its disruptive effects, we failed to improve our direct foreign investment share in the ASEAN. Indeed, the Asian Financial Crisis was exacerbated many times in the Philippines by the capital account liberalization as local banks soaked up on dollar borrowings which eventually they could themselves not service and this became a national liability. Their stop-go cyclical nature tended to exacerbate the boom-and-bust trajectory of the pre-2000 Philippine economy.

As observed, the BSP paused the expected easing of monetary policy at 5.75%. Pausing the expansionary policy when the economy is losing growth momentum, and inflation is in some remarkable quietude (2.1% in February) went contrary to market expectation. Together with many observers, I have expected BSP to continue the reduction of the BSP interest rate.

If ever there was a good time to remind ourselves of our monetary independence, this was it. Instead, the BSP bowed to the arc of history, having surrendered our monetary independence to humor the arbitrage chasers. Still, we take comfort in the BSP governor’s intimation that this decision was not taken lightly. As little as this was, it seems a ray of hope. A reason perhaps to dream that the BSP will finally decouple from the Fed on monetary policy.

But rather than quiver in fear, we need to build our own muscles. Others have gone before us to superior results. When economic growth is the performance criterion, the emerging evidence seemed to favor the fixed exchange rate. Frankel et al. (2019) found that growth performance tends to be negatively related to de facto flexible exchange rate regimes and tends to be positively related to either de facto fixed exchange rate or “systematic managed floating” (intermediate exchange rate regime) regimes. This latter supports a perception of “greater price stability” and consequently more stable macro policy under a fixed exchange rate. Herein is the reason why so-called “currency manipulators” seem to exhibit better results than currency neutralizers.

A “currency manipulator” is a pejorative label attached by the US Treasury or State Department to an economy characterized by a persistent trade surplus (especially against the US) atop a refusal to allow the domestic currency to appreciate. As of November 2024, several countries — China, Japan, South Korea, Singapore, Taiwan, Vietnam, and Germany — were in the US Treasury/State Department watchlist of potential currency manipulators. Vietnam was warned by the US State Department of currency manipulation when it refused to let the Vietnamese Dong appreciate despite an emerging trade surplus. If you ask me, those in the currency manipulator fraternity are among the stellar performers in the development arena.

So, is there a BSP decoupling from the US Fed monetary policy in our future? Yes, but only in my dreams despite the sans pareil Lea Salonga song (“I dreamed a dream” from Les Miserables) goes: “But there are dreams that cannot be and there are storms we cannot weather.”

Perhaps so in the ergodic universe we have long been accustomed to, but perhaps not in the emerging non-ergodic universe. After all, who dared dream that Rodrigo Duterte would ever be whisked to The Hague, Netherlands to face the ICC tribunal?

 

Raul V. Fabella is a retired professor of the UP School of Economics, a member of the National Academy of Science and Technology and an honorary professor of the Asian Institute of Management. He gets his dopamine fix from bicycling and tending flowers with wife Teena.

Toyota new vehicle warranty extended to 5 years

PHOTO FROM TOYOTA MOTOR PHILIPPINES

TOYOTA MOTOR PHILIPPINES (TMP) recently announced the commencement of its “Toyota Five-Year Warranty” program — applicable to all Toyota vehicles sold from Jan. 1, 2025 onwards. Previously, Toyota vehicles were covered by a three-year/100,000-km warranty. With the new coverage, customers get up to two years/40,000km of additional warranty provided that they are able to avail of the minimum number of periodic maintenance services (PMS) sessions during the three-year warranty period, with at least one PMS visit per year at any Toyota dealer. All Toyota models released from Jan. 1, 2025 onwards and all Toyota vehicles under contract with Kinto One or Kinto One Business starting on the same date qualify for the Toyota Five-Year Warranty.

Customers who avail of at least six PMS visits at any Toyota dealer with at least one PMS visit per year during the three-year/100,000-km warranty period will qualify for additional full coverage for the fourth year, which has the same coverage as the three-year/100,000-km warranty.

However, customers who will avail of less than six PMS sessions will qualify for the Fourth-Year Limited Coverage additional warranty on the condition that they were able to make three to five PMS visits with at least one PMS per year at any Toyota dealer. The limited-coverage additional warranty does not cover wear-and-tear parts related to suspension, steering, and the brake system.

Customers able to avail of the full-coverage additional warranty on the fourth year are eligible for an additional one-year/20,000-km extension on the fifth year, provided they were able to make at least two PMS visits during the fourth year of ownership. Vehicles of customers that were only able to avail of one PMS session during the fourth year of ownership are qualified for a limited-coverage additional warranty.

For more information, contact a Toyota dealership. The complete list of authorized Toyota dealerships is available at https://www.toyota.com.ph/dealer. Updates on Toyota products, services, events, and promos are also available through Toyota Motor Philippines’ social media platforms: Facebook (ToyotaMotorPH), Instagram (toyotamotorph), and X (toyotamotorph). TMP also has a ToyotaPH community on Viber.

Rates of T-bills, bonds to move sideways before Fed meeting

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RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) to be auctioned off this week may be mixed before the US Federal Reserve’s policy meeting.

The Bureau of the Treasury (BTr) will auction off P22 billion in T-bills on Monday, or P7 billion each in 91- and 182-day papers and P8 billion in 364-day papers.

On Tuesday, the government will offer P30 billion in reissued 10-year T-bonds with a remaining life of eight years and 10 months.

T-bill and T-bond rates could track the mixed movements in the secondary market last week amid expectations that the US central bank can resume its easing cycle this year amid slowing inflation despite the uncertainties brought by the Trump administration’s policies, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The T-bond offer could see “good demand” and fetch rates ranging from 6.175% to 6.225%, a trader said via e-mail.

“The Federal Open Market Committee meeting [this] week will be the next catalyst,” the trader said.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills eased by 2.03 basis points (bps), and 0.6 bp, and 0.21 bp week on week to end at 5.2499%, 5.5675% and 5.792%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website.

Meanwhile, the 10-year bond rose by 2.04 bps week on week to close at 6.2301%.

The US central bank will review its policy settings on March 18-19. Fed policy makers are universally expected to leave rates in their current 4.25%-4.5% range when they meet this week, and traders are also betting against a rate cut at their May meeting, Reuters reported.

Investors will pay particularly close attention to the Fed’s own projections for inflation, unemployment and the path of rates, due to be published at the end of their two-day policy-setting meeting. In December Fed policy makers forecast two interest-rate cuts this year.

Pricing of short-term interest-rate futures still reflects an expectation for a June start to Fed rate cuts, with likelier than not a total of three quarter-point reductions by the end of the year.

Last week, the BTr raised P30.8 billion from the T-bills it auctioned off, higher than the P22-billion plan, as total bids reached P90.598 billion, more than four times as much as the amount on offer.

The strong demand prompted the government to double the accepted noncompetitive bids for the 91- and 182-day securities to P5.6 billion and to P6.4 billion for the 364-day T-bill.

Broken down, the Treasury borrowed P9.8 billion via the 91-day T-bills, higher than the P7-billion plan, as tenders for the tenor reached P35.628 billion. The three-month paper was quoted at an average rate of 5.178%, declining by 10.5 bps from the previous auction, with the BTr only accepting bids with this yield.

The government also made a P9.8-billion award of the 182-day securities, above the programmed P7 billion, as bids stood at P30.05 billion. The average rate of the six-month T-bill was at 5.48%, 13 bps lower than the yield fetched in the previous week, with accepted rates ranging from 5.49% to 5.568%.

Lastly, the Treasury raised P11.2 billion via the 364-day debt papers, more than the P8 billion placed on the auction block, as demand for the tenor totaled P24.92 billion. The average rate of the one-year debt inched up by 0.3 bp to 5.773%, with bids accepted carrying yields of 5.755% to 5.779%.

Meanwhile, the T-bonds to be auctioned off on Tuesday were last offered on Feb. 18, where the BTr raised P30 billion as planned at an average rate of 6.118%, lower than the 6.25% coupon rate.

The Treasury is looking to raise P147 billion from the domestic market this month, or P22 billion from T-bills and P125 billion from T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.54 trillion or 5.3% of gross domestic product this year. — A.M.C. Sy with Reuters

Louis Vuitton to branch into beauty products, taps makeup star Pat McGrath

PARIS — Louis Vuitton, the world’s biggest fashion label, will begin selling beauty products this fall and has tapped British makeup artist Pat McGrath to lead creative direction for the new venture, expanding its offer as the industry seeks new avenues of growth to offset a current slump.

The move by the LVMH-owned label, announced in a statement on Wednesday last week, comes as the fashion industry, including LVMH, faces its slowest sales in years, struggling in particular to reignite interest from younger, inflation-weary shoppers.

A number of high-end fashion houses including Hermes, Valentino, and Celine, which is also owned by LVMH, have branched out in recent years into makeup, which even at the high end, where lipsticks can cost over $50, is more affordable than fashion handbags that are priced upwards of $1,000.

Ms. McGrath, whose makeup company Pat McGrath Labs sells concealers in over 30 color shades, is well-known for her influence in the fashion industry.

For John Galliano’s Maison Margiela fashion show last year, one of the industry’s buzziest runway outings in recent years, she famously made models look like dolls, adding a glossy sheen to their faces that resembled porcelain.

Vuitton, which already sells perfumes, will launch 55 lipsticks, 10 lip balms, and eight eyeshadows in over 100 brand stores around the world.

Production will be in France and the label will also make leather goods for the products. Vuitton made vanity cases in the 19th century and in the 1920s sold powder compacts, brushes, and mirrors. — Reuters

BSP bills fetch mixed rates

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YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) short-term securities ended mixed on Friday, with rates moving sideways and both tenors going oversubscribed.

The BSP bills fetched bids amounting to P176.724 billion on Friday, above the P140-billion offer and the P172.312 billion in tenders for the P130 billion auctioned off in the previous week. The central bank made a full P140-billion award of its offer.

Broken down, tenders for the 28-day BSP bills reached P58.659 billion, higher than the P50-billion offer and the P52.228 billion in bids for the same volume auctioned off the week prior. The central bank awarded P50 billion in one-month papers as planned.

Accepted yields ranged from 5.825% to 5.89%, narrower than the 5.809% to 5.9% band seen a week earlier. This caused the average rate of the one-month securities to inch up by 0.96 basis point (bp) to 5.857% from 5.8474% previously.

Meanwhile, bids for the 56-day bills amounted to P118.065 billion, above the P90-billion offering but lower than the P120.084 billion in tenders for the P80-billion offered by the central bank in the previous week. The BSP made a full P90-billion award.

Banks asked for yields ranging from 5.84% to 5.874%, narrower and lower than the 5.85% to 5.9% margin seen a week prior. With this, the average rate of the securities dropped by 1.87 bps to 5.8576% from 5.8763% logged in the previous auction.

The central bank uses the BSP securities and its term deposit facility to mop up excess liquidity in the financial system and to better guide market rates.

The BSP bills were calibrated to not overlap with tenors of the Treasury bills and term deposits also being offered weekly.

Data from the central bank showed that around 50% of its market operations are done through the short-term BSP bills.

Short-term instruments offer more stability and predictability, the BSP has said. These are also considered high-quality liquid assets, giving banks more flexibility.

BSP securities can also be traded in the secondary market. — Luisa Maria Jacinta C. Jocson

CTA denies Green Cross’ P118-M tax refund petition

CTA.JUDICIARY.GOV.PH

THE COURT OF TAX APPEALS (CTA) has denied Green Cross, Inc.’s tax refund claim, affirming the imposition of excise taxes and related value-added tax (VAT) on its taxable goods, totaling nearly P118 million.

The court en banc affirmed an earlier ruling that denied Green Cross’ request for a refund of P117,973,507.78 covering November 2018 to December 2019.

It ruled that the company’s cologne products and splash colognes qualify as “toilet waters” and are subject to excise tax under prevailing tax laws.

The tribunal held that the repeal of Revenue Regulations (RR) No. 8-84 — which defined “toilet waters” as scented preparations with more than 3% essential oils — was implicitly superseded by subsequent amendments to the National Internal Revenue Code (NIRC) of 1977, particularly Executive Order (EO) No. 273 in 1987.

EO No. 273 reclassified the tax on “perfumes and toilet waters” from a percentage tax to an excise tax.

The court said the rules and regulations governing the percentage tax under the old law are inconsistent with the policy framework for excise tax under Section 150(b) of the NIRC of 1997.

“Since the language of the statute is plain and unambiguous, there is no need for further interpretation or to examine legislative intent,” the 22-page ruling promulgated on March 3, 2025, read.

“The law must be applied as written. Following the valid and binding interpretation made by the CIR in RMC No. 17-02, cologne products and splash colognes are considered ‘toilet waters,’ which are non-essential goods subject to the 20% excise tax imposed by Section 150(b) of the NIRC of 1997, as amended,” it added.

The ruling was penned by Presiding Judge Roman G. Del Rosario.

The tribunal reiterated that colognes are classified as “non-essential goods” under the tax code.

It emphasized that Section 150 of the NIRC explicitly imposes an excise tax on toilet waters, which are categorized as “non-essential goods” without any price-based qualifications. The common understanding of “non-essential goods” refers to their function rather than their market value.

The case originated when Green Cross, Inc. filed a Petition for Review on May 8, 2024, seeking to reverse the Decision dated Nov. 22, 2023, and the Resolution dated April 16, 2024, issued by the CTA Special Second Division.

These prior rulings had denied Green Cross’ Petition for Review, which sought the refund of P117,973,507.78 for alleged erroneously paid excise taxes on the removals of cologne products and splash colognes, as well as VAT imposed on these excise taxes.

Green Cross argued that its cologne products should not be taxed as “toilet waters” under Section 150(b) of the NIRC of 1997, as amended, asserting that the older definition under RR No. 8-84 should still apply.

The Bureau of Internal Revenue (BIR) maintained that Green Cross was liable for these taxes based on BIR Ruling No. 043-2000, which classified colognes as “toilet waters” subject to excise tax.

After the CTA Special Second Division denied Green Cross’ refund claim, the company elevated the case to the CTA en banc, which ultimately upheld the ruling. — Chloe Mari A. Hufana

The growing youth epidemic of alcohol, tobacco, and vape use: A call for higher health taxes

WILD VIBES-UNSPLASH

On March 5, leading doctors and public health advocates gathered at the Philippine Medical Association (PMA) headquarters in Quezon City to sound the alarm on the growing epidemic of alcohol, tobacco, and vape consumption among Filipino youth. With the 2025 elections looming, they issued a challenge to aspiring lawmakers: Will they stand for public health, or will they allow industries that profit from harm and addiction dictate policy?

The evidence presented at the event was nothing short of alarming. According to data from the National Nutrition Survey data, alcohol and tobacco consumption among adolescents aged 10 to 19 doubled between 2021 and 2023. This means hundreds of thousands more Filipino youths are picking up smoking, vaping, and alcohol drinking at an early age. They are falling prey to industries that market these harmful substances.

The human toll of addiction and disease as expressed in the economic cost of alcohol and tobacco consumption is staggering. Action for Economic Reforms’ (AER) research estimates that the total economic burden of these harmful products reaches P1.05 trillion, or 5% of GDP annually. This cost stems from direct healthcare expenditures for treating diseases caused by alcohol and tobacco, the larger impact of lost productivity due to illness and premature death, and the broader social consequences of alcohol, including road crashes, domestic and community violence, and law enforcement costs.

To put this number into perspective, P1.05 trillion is larger than the combined 2025 budgets for the departments of Education and Health. It is a cost borne not just by those who consume alcohol and tobacco, but by every Filipino taxpayer who funds public hospitals, subsidizes healthcare programs, and deals with the economic burden caused by preventable diseases.

Despite this immense financial burden, excise tax collections from alcohol and tobacco in 2021 amounted to only P266.6 billion — barely a quarter of the damage these industries inflict on our economy and society. Companies that manufacture and market alcohol and tobacco products should be held accountable and taxed accordingly. The revenue from these taxes should then be funneled directly into Universal Health Care, as well as treatment and cessation programs to break the cycle of addiction.

Aggressive marketing tactics are a major factor behind the rising prevalence of alcohol and tobacco use among young people. Flavored vape products, cheap alcohol, and celebrity- and influencer-driven promotions are all designed to attract and hook young people. Without stronger regulations and higher excise taxes, the next generation will continue to be the primary target of these industries.

Time and again, the evidence has shown that higher excise taxes on alcohol and tobacco reduce consumption, especially among price-sensitive groups such as young people. Increasing these taxes is a dual-purpose policy: it deters use and generates much-needed revenue for healthcare services.

Yet despite overwhelming evidence supporting higher taxes, current policymakers remain hesitant — largely due to industry pressure.

The recent House Bill 11360 (which has been criticized as the Sin Tax Sabotage Bill), threatens to roll back hard-won gains by making cigarettes more affordable. If passed, the bill could lead to an additional 1.86 million smokers over the next decade while costing the government at least P176.5 billion in lost revenues.

What we need is increasing sin taxes. Tax rates must reflect the true cost from consumption of alcohol, tobacco, and vape products reflect their true cost to society.

With the elections fast approaching, voters must demand accountability from candidates. Where do they stand on Sin Taxes? Will they prioritize the health and well-being of the Filipino people, or will they bow to corporate interests?

This is a public health issue. It is also an issue of governance, integrity, and leadership.

To those running for office in 2025: Stand with the people, not with the industries profiting from harm. Support higher taxes on alcohol, tobacco, and vapes. Protect our youth. Safeguard the future of our nation.

 

AJ Montesa is a program officer for research and heads the tax policy team of Action for Economic Reforms.

JMC Philippines to bring in electrified sub-brand

PHOTO FROM ASTARA PHILIPPINES

JMC PHILIPPINES, backed by global mobility leader Astara, said it is “taking a bold step into the future of mobility” by introducing a line of electric cars to the market under the JMEV (Jiangxi Jiangling Group New Energy Vehicle Co., Ltd.) sub-brand. “This expansion marks a significant milestone, as JMC broadens its lineup beyond its renowned Grand Avenue and Vigus pickups to include sustainable EV options,” the company continued in a release.

JMEV features electric pickups and electric sedans — said to highlight a “balance of advanced technology, efficiency, and reliability.” These will be seen as complementing the existing lineup of JMC in the Philippines through “a versatile selection for both eco-conscious drivers and those who demand rugged performance.”

Astara Philippines promised to announce model details for the Philippine market “soon.” JMEV currently offers models such as the EV2, EV3, and E Light in global markets, including China and Europe.

For more information, visit https://jmcph.com/ or follow the official social media accounts of JMC Philippines on Facebook and Instagram (jmcpickupsph).

Gucci’s pick of Demna as new design chief unsettles Kering investors

PARIS/MILAN — Kering lost around $3 billion in stock market value on Friday after the group chose in-house talent Demna to reinvigorate its Gucci label rather than hiring one of fashion’s big-ticket names as chief designer.

Kering’s shares fell by up to 13% in morning trade in Paris and were on track for their worst day in almost a year following the appointment of Balenciaga designer Demna.

Although widely praised for his streetstyle-inspired looks and attention-grabbing showmanship at Balenciaga, many analysts said 43-year-old Demna — who was born in Georgia and is known by one name — was a risky pick for much larger label Gucci with its reputation for timeless elegance.

The fashion world had been eagerly anticipating news of the new design chief at Gucci, which generates nearly half of Kering group sales and two-thirds of operating profit, after the brand fired Sabato de Sarno in February as sales of its handbags, loafers, and dresses kept sliding.

“This in-house solution might appear to have been taken in lack of better options, but is also a bold move given Balanciaga’s success. Time will tell,” said Ariane Hayate, European Equity Fund Manager at investment bank Edmond de Rothschild.

Kering did not immediately reply to a Reuters request for comment.

“Some investors are wondering: ‘Who is driving the bus?’” Bernstein analyst Luca Solca said, citing a string of bad news at the group including expensive brand and real estate acquisitions, several profit warnings and now the upheaval around Gucci’s design chief.

Barclays analysts said choosing Demna rather than a famous external candidate like Hedi Slimane, Maria Grazia Chiuri, or Pier Paolo Piccioli — three of the most-cited names by fashion watchers for the job — appeared as an attempt to make the label a global trend setter again.

PROLONGED SALES DECLINE
Gucci’s prolonged sales decline, including a 24% drop in revenue in the fourth quarter of 2024 alone, has heavily weighed on Kering, with group shares down around 40% year-on-year while a European sector benchmark index was down only nearly 6% over the same period.

The group also recently lost Matthieu Blazy, its star designer at Bottega Veneta, who left to lead Chanel.

Sacking De Sarno was the first major decision under Gucci’s new chief executive, Stefano Cantino, who took over the helm in January.

De Sarno’s shift to minimalist and more timeless styles failed to gain traction with shoppers.

Kering executives said last month De Sarno helped the century-old label shift its focus back to more classic elegance, leaving a clean slate for his successor.

Demna now needs to redefine Gucci’s artistic direction and reinvigorate shoppers and retail buyers in Europe, the United States and China, which has been a struggle for the label since Alessandro Michele’s departure in 2022.

In China, where Gucci is highly exposed and suffered heavily from a recent slowdown in consumer spending, Demna’s appointment was met with mixed reaction.

“The appointment has generated significant media attention and digital buzz in China, but early indicators suggest a divergence between excitement and skepticism,” said Alexis Bonhomme, CEO of China-based luxury consultancy Trinity Asia.

“Demna’s hype-driven, streetwear-centric playbook made Balenciaga a sensation in China, but Gucci’s broader audience and deeper heritage necessitate a more refined approach,” he added.

At Gucci’s main store in Milan, shopper Elena Cucchi was puzzled. “I don’t understand why they made this change and put in this new designer who to me, seems a bit over the top.”

The fact Demna is set to take over the helm only in July also raised questions.

“It is unclear whether his imprint on the brand will already be evident at Gucci’s September Milan fashion show. Or whether we will have to wait until 2026,” Jeffries analysts said.

Demna’s appointment was the latest reshuffle at the top of luxury fashion and came a day after Donatella Versace stepped down as Versace’s main designer, with Dario Vitale taking over. The industry’s slowdown has also triggered designer changes at other houses including Maison Margiela, Valentino, and LVMH-owned Fendi and Celine.

Demna grew up in Soviet-era Georgia and studied economics before migrating to Germany and then Belgium where he became a designer. He has mocked modern consumer culture, creating a Balenciaga bag that resembled one from IKEA, but sold for €2,000 ($2,180.20). He has also voiced support for Ukraine in its war against Russia.

“I read the news,” Demna was quoted as saying by the New Yorker in a 2023 portrait. “I can’t disconnect from reality.”

At Balenciaga, Demna had also sparked a major backlash in 2022 over ad campaigns involving children, which he later said was the “wrong artistic choice.” Kering kept him in the role, where he carefully managed the brand’s exposure and ramped up sales. — Reuters

PayMongo could raise fresh capital early next year

PAYMONGO Philippines, Inc. could look to raise fresh capital again by 2026, its top official said, with its current war chest still sufficient for its expansion plans this year.

“We want to make sure that 2025 remains steady, but the growth will justify that next move. There’s been a lot of interest to raise money… and the company is still going through major changes. So, we don’t know to what extent we will be able to grow the business,” PayMongo President and Chief Executive Office Elmer M. Malolos told BusinessWorld on Friday.

The company’s last fundraising round was in 2022 through which it was able to raise a total of $31 million. Mr. Malolos said this was enough to last them for two years.

PayMongo plans to use the fresh capital to expand overseas likely in Southeast Asia, the official said.

“That has always been the plan, but it commands a different type of consideration because we need to understand what will be required of us when we go to this country — how much is the license and all that. If we have this much money to run the operation for 24 years, will I be willing to cut it to 12 years? So, those are those are considerations I need to make,” Mr. Malolos said.

“It will have to be in Southeast Asia. It will have to be in areas where we can maximize our partnership with Stripe, which is our major shareholder, and also with some of the partners that we are looking at,” he added.

PayMongo could also breakeven within the next two years as they expect strong gross profit growth, Mr. Malolos said.

“We will probably breakeven, the earliest will be maybe in the first quarter of 2026. Although I’m projecting that at the current run rate, it could be faster.”

Last year, the company’s gross profit increased by 240% year on year. Mr. Malolos said in a separate speech on Friday.

He added that gross profit growth this year will be faster than the pace seen in previous years. They also expect total payment volume coursed through PayMongo to grow to $1.7 billion this year from $1.1 billion last year.

The company will also partner with more digital banks to scale its small business lending, Mr. Malolos said.

“We’re also partnering with banks. We’re also partnering with financial institutions that all have licenses to basically lend money so we don’t lend ourselves, because we don’t have a license to lend money. But they use our rates to get to our customers,” he said.

PayMongo expects partner merchants that actively borrow from the company to grow further this year, he added.

“We have about 20,000 merchants. We have 7,000 actively engaged,” Mr. Malolos said.

The company on Friday unveiled a full-scale financial operating system (OS) with dynamic onboarding as part of its sixth anniversary.

The expanded financial platform will “streamline business payments, provide instant access to funding, and enable software platforms to embed financial tools seamlessly,” the company said.

It will offer instant settlement capabilities, embedded finance infrastructure, comprehensive payment assistance, advanced fraud prevention compliance, and PayMongo Capital, which will give partner merchants access to funding.

“We’re not just changing our look, we’re redefining how businesses access financial power,” said Luis Sia, chairman and co-founder of PayMongo. “With our upcoming dynamic onboarding and new Financial OS, businesses will soon be able to start accepting digital payments faster than ever. PayMongo Capital further ensures they have the resources to scale seamlessly.” — Aaron Michael C. Sy