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Ayala Corp.

AYALA CORP. was the most actively traded stock in the exchange last week on account of the results of the country’s fourth-quarter economic performance and the spillover effects from Mitsubishi Corp.’s block sale a week prior.
Data from the Philippine Stock Exchange showed a total of P2.832 billion worth of 3.098 million shares having exchanged hands on the trading floor from Jan. 21-25.
Shares in Ayala closed at P921.5 apiece on Friday, up 0.99% from the previous day and down 1.9% on a week-on-week basis. For the year, Ayala’s shares were up 1.7%.
“What made [Ayala] one of the most actively traded recently is the share sale made by Mitsubishi after the latter sold around 13 million shares at P900 apiece. So, market participants are probably repositioning or rebalancing their holdings after the event and they’re probably assessing the growth prospects and expansion plans of the firm… [T]hat’s why we’re seeing large volume of shares being exchanged in the market,” said Jervin S. de Celis, trader at Timson Securities, Inc.
Rachelle C. Cruz, research analyst at AP Securities, Inc. said the Mitsubishi sale was a negative for the stock in the short term. “When a placement like this happens, expect consolidation. It was an overhang from the placement made by Mitsubishi,” she said.
On Jan. 16, Mitsubishi cut its stake in Ayala Corp. as part of its portfolio rebalancing. The transaction weighed down the market that day, with Ayala having a 6.4% weight on the benchmark Philippine Stock Exchange index.
Meanwhile, Ayala bounced back later in the week, which analysts attributed to foreign buying.
Ms. Cruz said Ayala benefitted from the fourth-quarter gross domestic product (GDP) growth reading that came out last Thursday, noting it “is one of the companies representing the Philippine economy. If the economy does well, expect more foreign inflow.”
“The country’s GDP did not disappoint. Although it remained below consensus, it is better compared to what’s happening outside the country,” she added.
The Philippine economy expanded by 6.1% in the fourth quarter, which is slower than expectations. This brought full-year 2018 GDP growth at 6.2%, falling short of the downward-revised 6.5%-6.9% growth target of the government for the year.
“We don’t often see big dips among blue chip stocks, so I think people took it as a chance to buy at lower price,” Mr. de Celis said, noting P880-P900 per share remains as the “support area” for Ayala, with P940 per share as the stock’s short-term resistance.
For this week, Ms. Cruz placed the stock’s support and resistance at P905 per share and P945 per share, respectively.
The conglomerate’s net income attributable to owners of the parent went up by 3% to P23.86 billion during the first nine months of 2018, from P23.24 billion in the same period a year ago supported by strong earnings growth of its real estate, telecommunications, and power segments. It, however, posted higher interest expenses at the parent level on account of increased borrowing to finance its capital spending.
Mr. de Celis noted Ayala has been “consistently profitable” for the past five years, with the company projected to book P279 billion in revenue. “If the odds go in favor of the firm, Ayala can rake as much as P310 billion worth of revenue by the end of 2019,” he said.
He also noted that Ayala will continue to benefit from its main revenue contributor Ayala Land, Inc., followed by its electronic business Integrated Micro-Electronics, Inc. (IMI) through AC Industrial Technology Holdings, Inc.
“I think Ayala Land is well positioned in this area because the demand for office spaces is still strong while housing sales is getting a boost from Chinese investors. In its electronics business (IMI), it can benefit from lower peso, [which is] projected to weaken this year,” Mr. de Celis said. — Carmina Angelica V. Olano

When is a shoe like a building?

QUICK, what does a building have in common with a shoe?
Not much, when you think about it, but both play a vital role: in being structurally sound, both a building and a shoe support humans and their ambitions: a building doing so by placing a roof over your head, while a shoe lifts and supports the human body and protects the foot.
Rem D. Koolhaas, nephew of esteemed Dutch architect Rem Koolhaas, came to the Philippines once again to promote his shoe brand, United Nude — last year the came to open the shoe store in Resorts World Manila.
Now, central to the shoe brand’s creation is a heartbreak he experienced while in university. He has since been happily married, but while in the delirium of his distress, he switched his course from buildings to designing shoes. “It’s the birth of the idea of the downscaling from larger architecture to its smaller, more intimate kind of scale,” he said, delineating the relationship between shoes and buildings (at least, for him).
He says about his creative streak during the unfortunate romantic episode, “If you’re stuck in something, say a broken heart… you have to use that energy and flip it.
“You can cry, and hide yourself in your room, but while you’re doing that, bring a notebook; bring a sketchbook,” he said, and that could be a tip for any creative person out there.
He also likes designing in what he calls an “in-between space”: airports, buses, trains, and the like. It says a lot about how his mind works: while he says that he is inspired during his travels, it’s not so much that he’s literally inspired visually, but the rush of movement makes his mind accelerate. But in an in-between space, he puts pen to paper, because, “You know you’re stuck.”
As he was talking with BusinessWorld at the sidelines of a United Nude event on Jan. 12, he was wearing a clunky pair of black sneakers. It turns out that he is expanding his men’s line, noting that the shoe is part of his Fall/Winter 2019 collection, which he took out to test before its release in July.
He is also planning to make a high-heeled shoe for men with model Shaun Ross.
The brand is known for its various avant-garde creations, which attract the attention of people like Lady Gaga, or else creative collaborations with the likes of the late architect Zaha Hadid.
If a shoe can tell so much about a person, then what does a United Nude shoe say about its wearer? “It’s basically a statement that says, ‘I like design,’ said Mr. Koolhaas. — Joseph L. Garcia

Only a minority of farmers prefer hybrid rice seed

MOST rice farmers in the Philippines still prefer inbred seed instead of hybrid varieties despite the latter’s higher yields, the International Rice Research Institute (IRRI) said.
In a briefing, IRRI Plant Breeding Rice Breeding Platform Senior Scientist II Arvind Kumar said that in the Philippines, 90% of agricultural lands are planted to inbred seed, and only 10% at most are planted to hybrid varieties.
“Hybrid seed is supposed to give 10% or 15% higher yields as compared to inbred seed provided that farmers have access to better practices and knowledge about how to manage the hybrid seeds,” Mr. Kumar said.
According to Mr. Kumar, cost is also a factor for farmers choosing which seed variety to plant.
“Both inbred and hybrid play [a role] in rice contribution,” Mr. Kumar said.
“Hybrid is still a bid costlier than inbred seed. The cost is an effective thing to consider which seed you select for,” according to Mr. Kumar.
According to IRRI, in choosing a rice variety, farmers consider grain quality, price at market, optimum yield potential and stability over seasons, maximum tillering capacity for weed competition, resistance or tolerance to major diseases, insects and other stresses, the right growth duration to match the season, and resistance to lodging under normal management.
Meanwhile, Mr. Kumar said that IRRI continuously develops rice seed that can withstand climate change, noting that there are eight drought-tolerant rice seed varieties in the Philippines available for highland and lowland planting. — Reicelene Joy N. Ignacio

Haute Couture Fashion Week:Gaultier goes to Japan; Lagerfeld a no show


PARIS — French designer Jean Paul Gaultier evoked a sea journey to Japan at his latest Haute Couture fashion show last Wednesday, in a riot of colors and pleats that drew celebrities including actress Catherine Deneuve and model Irina Shayk to the front now.
To the soundtrack of “La Mer” by Charles Trenet, the show opened with a short series of blue and white striped tops, an emblematic pattern of Mr. Gaultier’s repertoire since the 1980s and his famous Toy Boy collection.
From the French coast and its sound of waves, the designer, whose brand is owned by Spanish perfumer Puig, continued his journey to a colorful Japan where he revisited the art of pleating, including in the waffled hair sported by some models.
Wearing high heeled jelly shoes, one model strutted down the runway in an asymmetrical cascade of pleated purple organza on a black bustier and a creme pants, tied together by an obi belt.
Elsewhere neon green tights were coupled with a rainbow of intricately pleated tulle, and the outfits, with extravagant names like “Floating Island,” featured elaborate braiding and embroidering.
A wedding dress of sheer organza built around a see-through cage closed the show.
In one highlight, burlesque artist Dita Von Teese sashayed down the runway to thunderous applause in a translucent black and skin tone dress, with huge pointed shoulders that gave her a fairy look.
Ms. Von Teese recently performed in Gaultier’s Fashion freak show, a cabaret-style act put on by the designer in Paris and featuring dance, songs, acrobatics and fashion.
Mr. Gaultier quit ready-to-wear fashion in 2014 to focus on the one-of-a-kind outfits presented in Haute Couture Week in Paris, as well as his perfume line.
VALENTINO BRINGS POETRY TO PARIS WITH FEAST OF FLOWERS
Meanwhile, Italian fashion label Valentino created a dreamlike ode to spring on the catwalk in Paris, as models appeared to float down the runway in a series of vaporous dresses adorned with shimmering flowers, oversized ruffles and feathers galore.
Fashion veteran Naomi Campbell wowed in an enormous half sheer, all-black gown at the close of the Haute Couture show.
But softer pastel tones and delicate floral patterns dominated other looks, as celebrities including Celine Dion looked on in the audience.

Models wore feathers on their eyelashes in a presentation that almost resembled an extravagant masked ball.
The brand has long been go-to for Hollywood movie stars, with creations by its now retired founder Valentino Garavani, whose magenta red gowns became a signature trait, featuring heavily during awards season.
Current creative chief Pierpaolo Piccioli’s bouffant dresses, and oversized designs in sumptuous taffeta and vibrant colors have earned him plaudits from a fashion forward crowd and a clutch of awards.
The label’s Qatari owners, investment vehicle Mayhoola, had examined plans to list Valentino on Milan’s stock market, sources told Reuters in late 2017, although the company has been evasive about such plans since.
ARMANI’S GLITTERING ART DECO FASHION DRAWS STARS
Italy’s Giorgio Armani played off bright reds against dazzling blue tones in his Haute Couture fashion collection, in an Art Deco-inspired feast of feathers, sequins, patent leather and crystals.
The designer’s gowns have long been red carpet favorites, and the catwalk show drew Hollywood actresses Uma Thurman and Dakota Fanning to the front row, along with Canadian singer Celine Dion.
Beaded caps sported by some models gave outfits a 1920s-era flapper twist, as swaying, fringed skirts succeeded slinkier numbers and intricately textured jackets which caught the light at certain angles.
Clunky earrings and patterned gowns recalled the geometry of Art Deco architecture, and models walked to the sultry soundtrack of Bernardo Bertolucci’s 1970 film The Conformist.
Some outfits in the label’s high-end Armani Prive range had an oriental air, in the rounded necklines of some dresses, flowing silk styles, or a kimono-style cloak.
The brand said it had also drawn on Chinese lacquer as an inspiration and to enhance some looks.
CHANEL RECREATES SUMMERY BLISS, MINUS LAGERFELD
Chanel hosted guests in a mocked-up Mediterranean garden for its Haute Couture show last week though Karl Lagerfeld, the octogenarian designer responsible for the collection and extravagant set, failed to show up for his customary bow.
“For the traditional greeting at the end of the show, Mr. Lagerfeld (…) , who was feeling tired, asked Virginie Viard, director of the creative studio of the house, to represent him and greet the guests,” the brand said in a statement.
Mr. Lagerfeld — one of fashion’s most prolific designers who also creates looks for LVMH’s Fendi label as well as his eponymous brand — has been Chanel’s artistic director since the early 1980s and is known for his striking visual displays.
His latest show transported onlookers to the palm-tree lined garden and pool of a Tuscan-style villa, contrasting with the wintry surroundings in Paris as snow fell on the venue’s glass ceiling inside the Grand Palais exhibition hall.
In a collection inspired by Mr. Lagerfeld’s favorite period, the 18th century, feathers adorned new twists on the brand’s classic tweed suits, which came with ankle length or fishtail skirts.
Some models wore pastel colored prom-style dresses. One strutted down the catwalk in a pale green number embellished with life-like flowers as celebrities including film director Sofia Coppola and actress Tilda Swinton looked on from deck chairs.
The fashion show closed with a glittering silver swimsuit as the brand’s bridal look, complete with a veil trailing from a swimming cap.
Mr. Lagerfeld, who has long maintained a mystery about his exact age, had been expected to put in an appearance after the second run-through of the collection.
The German designer is credited with helping jazz up the label founded by Coco Chanel in 1910 and attract younger clients. And at a time when fashion labels are relying ever more on creating a buzz on social media, Mr. Lagerfeld’s over-the-top catwalk settings have proved a hit too.
Chanel’s statement said Viard and Director of Image Eric Pfrunder “would continue to work with (Lagerfeld) and follow through with the brand’s collections and image campaigns.”
Haute Couture Fashion Week, which ran until Jan. 24, allows an elite club of top-end designers to show off elaborate creations, which are not mass-produced for stores but tend to be sold to a single client. — Reuters

Soybean R&D program hoping to boost yields

THE Department of Science and Technology-Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (DOST-PCAARRD) said it launched a soybean research and development (R&D) program with the aim of increasing farmers’ incomes by boosting production and lowering post-harvest losses.
“There are several factors contributing to the low competitiveness of our soybean. One main reason is the relative high cost of domestically producing soybean due to high cost of inputs such as land, labor, capital and management. Also, the Philippines’ soybean production is relatively small in terms of area and volume of production,” PCAARRD Acting Executive Director Reynaldo V. Ebora said in an email interview last week.
“This can be due to inefficient value chain and logistics for local beans. Some of the problems encountered by farmers in production and marketing are low yield, high post-harvest losses, lack of capital and planting materials, problems on insects, pests, and diseases, lack technical know-how, low market price, and limited market outlets,” Mr. Ebora added.
However, Mr. Ebora said that soybeans can be competitive in a way because the freshness of imports cannot be preserved for long.
“Nevertheless, there is an opportunity to compete in the food soybean market since local beans have the advantage of freshness and fewer food miles. For this reason, PCAARRD launched the program with the aim of increasing soybean productivity for higher farm income and more sustainable farming resulting from integrating soybean in the cropping system; supply chain improvement, and enhanced health and wellness from higher consumption of soybeans as food,” Mr. Ebora said.
The program involves four projects: analysis of supply chain and competitiveness, productivity and technical efficiency of soybean as food; soybean for higher income and enhanced soil health under different cropping systems; enhancing the sustainability of informal soybean seed sector; and soybean variety development for large seed size, higher yields and enhanced function properties.
The program is in cooperation with the University of the Philippines Los Baños (UPLB), University of the Philippines Mindanao (UPM), Central Luzon State University (CLSU), and Department of Agriculture Regional Field Offices 2, 10, 11, and 13.
Included in the program is the teaching of farmers how to process soy milk, make soybean curd or taho, tofu, and hotcakes.
“With the help of our R&D partners (such as the Department of Agriculture), we hope that our farmers will start adopting the developed technologies and system, and will breed the new and improved soybean varieties for food/feed use. Eventually, we anticipate that these will result in increased soybean productivity, improved quality of soybean, and more sustainable farming,” Mr. Ebora said.
Mr. Ebora said the program does not seek to achieve self-sufficiency in soybeans.
“The program is not pushing for the Philippines to be self-sufficient in soybeans. Since the Philippines is currently importing 99% of its soybean requirement (for both feeds and food), it cannot be self-sufficient in the short term,” Mr. Ebora said.
Mr. Ebora said that the program, rather, will help farmers by providing information on where and how to improve the soybean supply chain; technologies for optimum yield management under different cropping systems (rice-based, corn-based, cassava-based) for improved farm productivity and soil health, and training for stakeholders in technology; systems for on-farm seed post-harvest handling, packaging, and storage; new and improved soybean varieties for various agro-ecological zones; and stable soybean lines with large seeds, good processing quality, high yields and tolerance to diseases, and soybean lines with enhanced levels of functional properties. — Reicelene Joy N. Ignacio

Treasury bill rates to end mixed

RATES OF THE Treasury bills (T-bill) on offer today will likely end mixed as market participants await the first policy meeting of the US central bank.
The Bureau of the Treasury is offering P20 billion worth of T-bills on Monday, broken down into P6 billion each for the three- and six-month papers and another P8 billion for the one-year instruments.
Bond traders interviewed before the weekend said yields on the 182- and 364- securities on auction will likely decline from the previous offering, while the rate of the shortest tenor is seen to move sideways or end flat.
“The rate of the 91-day bills will move sideways. Then, the 182- and 364-day [papers] will fetch rates 5-10 basis points (bps) lower from the previous auction,” a trader said on Friday.
Last week, the Treasury borrowed just P16.347 billion out of the P20 billion it intended to raise at its T-bills auction, partially awarding the shortest tenor amid tepid demand as market participants sought to park their funds in the longer-dated securities.
The 91-, 182- and 364-day papers fetched 5.418%, 5.914% and 5.969%, respectively, at that offering.
Based on the PHP Bloomberg Valuation Service Reference Rates, the three-month, six-month and one-year papers were quoted at 5.473%, 6.004% and 6.069%, respectively, on Friday.
Another trader said rates of 182- and 364-day papers will be 10 bps lower from the previous offer as market participants are ahead to the US Federal Reserve policy meeting on Jan. 29-30.
The US central bank is expected to keep rates steady during the Federal Open Market Committee’s meeting. The Fed has signaled it will raise its benchmark rates twice this year, although some central bank officials indicated that they will be patient in tightening borrowing costs.
“It’s pretty much discounted what the Fed will do. What’s crucial about the meeting is what Fed Chair (Jerome) Powell would say during the press conference following the meeting,” the trader said in a phone interview.
The trader added that the market will also price in Philippine gross domestic product (GDP) growth data released last week.
The economy grew at a 6.2% pace in 2018, missing the already downgraded 6.5-6.9% growth target band of the government, as elevated inflation slowed consumer spending.
Meanwhile, fourth-quarter GDP growth stood at 6.1%, slightly faster than the revised six percent growth in the previous quarter, but still slower than the 6.5% pace in the same quarter in 2017.
“The recent GDP data is supportive of a lower interest rate. Or the BSP (Bangko Sentral ng Pilipinas) would basically [hold its interest rates] on their Feb. 7 meeting,” the trader added.
The government plans to raise P360 billion this quarter through domestic means. Some P240 billion will be borrowed through 12 weekly T-bill auctions during the three-month period, while P120 billion worth of T-bonds will also be issued through six fortnightly auctions.
The state wants to borrow P1.189 trillion in 2019 to fund its spending plans. Of the amount, 75% will be sourced domestically while the remainder will be from foreign creditors.
However, the 2019 national budget has yet to be passed by Congress and signed into law, leaving the fiscal program hanging so far. — Karl Angelo N. Vidal

EDC to rehabilitate Boracay wetland

LOPEZ-LED Energy Development Corp. (EDC) has allocated P10 million to rehabilitate a 7.79-hectare wetland in Boracay that it “adopted” in a three-year plan that is expected to turn the area into a money-earning venture for the community while reviving an important ecosystem in the popular tourist destination.
“Wetland No. 2,” one of nine wetlands identified for environmental rehabilitation by the Department of Environment and Natural Resources (DENR), is being transformed by EDC into “Boracay Wetland Conservation Park” (BWCP).
“Under our memorandum of agreement with the DENR, the BWCP is a three-year project,” Allan V. Barcena, EDC head for corporate social responsibility, told reporters over the weekend.
“We plan to invest P10 million during this period. Aside from the walkway and view deck, a visitor information center and other visitor amenities will be built here in the future,” he added.
Southwest of Diniwid beach, Wetland No. 2 is a brackish water swamp that has been turned into a construction dump through the years when Boracay was experiencing rapid visitor growth and construction expansion.
The wetland will serve as an arboretum for threatened native tree species under the BINHI reforestation and greening initiative. The project was launched in October 2018, coinciding with the island’s reopening.
EDC said the move to adopt a wetland was in support of the government’s continuous rehabilitation efforts as well as to further stimulate eco-tourism in Boracay. It entered into the partnership with DENR by bringing the geothermal energy company’s flagship environmental program Binhi to Boracay.
EDC is the largest diversified renewable energy firm in the country, with installed total capacity of 1,456.8 megawatts (MW) of RE. Binhi is its forest restoration program that prioritizes the propagation of 96 identified rare and threatened native tree species.
After thorough assessment of endemic flora and fauna in Boracay, EDC said it had planted the “appropriate” native tree species that thrive in a wetland environment and that can support existing marine and land animals.
“BWCP is rich in rare plants, including threatened species like Sander’s Alocasia, Narra, Ipil, Kubi, Antipolo, Isis, Sakat, Balakat, and Bakauan Dagat,” EDC said.
EDC said its partnership with DENR is a continuing initiative “that goes beyond just rehabilitating the wetland and planting more trees in the area.”
“At present, visitors can also commune with nature from the scenic view deck and delight in observing local and migratory birds,” it said.
Now on its 10th year, the Binhi program has reforested 9,196 hectares across EDC’s geothermal sites located in Leyte, Bicol, Negros Oriental and North Cotabato. The program now has 162 partners across 16 regions in the country. — Victor V. Saulon

Debt yields drop on GDP

YIELDS ON government securities (GS) fell slightly following data showing slower Philippine economic growth.
On average, debt yields — which move opposite to prices — slid by 5.35 basis points (bps) week on week, the PHP Bloomberg Valuation Service Reference Rates as of Jan. 25 published on the Philippine Dealing System’s website showed.
Michael L. Ricafort, economist at Rizal Commercial Banking Corp. (RCBC), pointed to the country’s slower fourth-quarter gross domestic product (GDP) growth as one factor that caused the decline in yields on all tenors.
“Slower-than-expected Philippine economic/GDP growth data announced last Thursday partly caused the latest decline in local interest rates, with the long-term interest rate tenors already at the lowest levels in 4-7 months and already down by a total of 1.80/2.00 [bps] from the decade-highs posted on Oct. 22, 2018,” he said.
“Furthermore, stronger peso on Friday at P52.54, the best in a week, also led to the latest declines in local benchmark interest rates. Local interest rates were lower amid continued expectations that inflation will continue to ease/trend lower in the coming months,” Mr. Ricafort added.
The economy grew by 6.1% in the fourth quarter, slower than the 6.5% expansion recorded a year earlier. The final quarter’s outcome brought the full-year GDP growth to 6.2%, missing the downward-revised 6.5%-6.9% target of the government for 2018.
Meanwhile, Jose Patricio F. Casas of Union Bank of the Philippines, Inc.’s Treasury-Peso Government Securities Desk described last week’s trading as “subdued” as market players mostly stayed on the sidelines.
RCBC’s Mr. Ricafort said external factors also affected the decline in rates across all tenors. “Slower global economic growth as earlier estimated by the International Monetary Fund, as well as signals that the US-China trade war talks is still far from being resolved…have led to greater cautiousness on US and global economic prospects, thereby resulting (in) more dovish signals and lower US/global bond yields that, in turn, partly leading to lower local interest rates as well.”
At the secondary market on Friday, rates of all tenors declined across the board. Yields dropped the most in the short end as the one-year debt fell 20.10 bps to 6.069%, followed by 91-day and 182-day Treasury bills (T-bill), which declined 19 bps and 9.9 bps to fetch 5.473% and 6.004%, respectively.
Treasury bonds (T-bonds) at the belly of the curve also declined across-the-board. The rates of the two-, three- and seven-year bonds fell by 1.4 bps, 1.8 bps and 2.1 bps, respectively, to finish at 6.216%, 6.266% and 6.387%. Meanwhile, yields on the four- and five-year T-bonds also fell to end at 6.3% and 6.33%, respectively.
Longer-term debt papers likewise dropped, with the 10-, 20- and 25-year T-bonds yielding 6.478%, 6.784% and 6.92%, down by 0.40 bp, 3.60 bps and 3.2 bps, respectively.
Looking forward, Mr. Ricafort expects benchmark rates, especially those on short-term tenors, to continue their decline this week. “Amid slower-than-expected economic/GDP growth locally and in the US/globally as the US-China trade war and the US government shutdown persist and both with no imminent resolution in sight yet, as all of these support the easing trend in local/global inflation,” he said.
Meanwhile, UnionBank’s Mr. Casas said: “Treasury bill auction is scheduled [this] week and we expect yields to be 5-10 bps lower for the three tenors. As for the T-bonds, we expect yields to trade within range with a bias on the downside. Market players will be looking at global developments for further direction.” — Lourdes O. Pilar

Store warns shoppers of edited images touting beauty products

NEW YORK — CVS Pharmacy unveiled an initiative in US stores on Thursday, labeling photos of models in its beauty aisles to make it clear whether the images had been digitally altered.
The US No 2 drugstore chain, part of CVS Health Corp., is the first major American company to adopt such a policy in the face of rising concerns about doctored images setting unrealistic ideals of beauty, especially for young women.
The retailer said on Thursday that 70% of all in-store beauty imagery was now flagged as “beauty unaltered” or “digitally altered.” The company announced its “Beauty Mark” initiative a year ago, but only on Thursday did it appear in stores.
CVS has promised that by 2020 all images in its stores nationwide will be marked. The policy has already been applied to all images on CVS.com and in marketing materials, including on social media, the company said.
Neutrogena, CoverGirl, and Revlon are among 13 brands working with CVS on the policy, the company said. Celebrities and others paid to promote products on social media are required to post only unaltered, unfiltered images.
CVS was the first US drugstore chain to take cigarettes off the shelf in 2014, a decision it says reduced smoking.
“We believe by not putting significantly altered images in our stores, it’s aligning to what our customers want and expect to see,” said Kevin Hourican, president of CVS Pharmacy. He said he expected the move to attract more millennial shoppers.
Actress Kerry Washington has been a part of the Beauty Mark initiative since its inception.
“I know firsthand what it looks like to wake up in the morning and look at the cover of a magazine and say, ‘Who is that? Why did some person at a computer change the shape of my face to appease their own idea of what I should look like when that is not who I am?’,” she told Reuters.
Other brands that have committed to marking their images as altered or not include: Olay, Almay, Aveeno, Rimmel, JOAH, L’Oreal, Maybelline, Unilever, Burt’s Bees, and Physicians Formula.
CVS is the third-most popular US retailer of skin care and cosmetics products, behind Walmart Inc. and Target Corp, according to Coresight Research. — Reuters

Philippine fund looks to frontier markets

A PHILIPPINE FUND manager that made money amid the 2018 equity meltdown is now looking for new horizons.
Michael Garcia, the chief executive officer and chief investment officer of MBG Capital, Inc. in Manila, wants to apply his expertise of Philippine shares to Vietnam and Myanmar. While considered frontier markets, he says they offer investment themes similar to the ones he’s familiar with and bets they’ll take his Seahedge Philippines Fund a step further after a 14% rally last year.
“These are like the Philippines before the reforms that attracted global investors,” said Mr. Garcia, who quit his job as CIO of Union Bank of the Philippines in 2011 to be on his own. He manages $60 million now. “These will be Asia’s hottest markets in the future with consumption, tourism and infrastructure stories similar to what we see now in the Philippines.”
He started dipping his toes into Vietnam in early 2017, and 10% of his Seahedge fund is invested in the country’s stocks. His holdings include Vietnam Technological & Commercial Joint Stock Bank and FPT Digital Retail JSC. The remaining 90% is in Philippine shares.
While Mr. Garcia said the Philippines will remain his primary market, he wants to bring the portion of overseas shares to 20%. He’s now looking into Yoma Strategic Holdings Ltd., a Burmese property developer listed in Singapore.
The countries he’s targeting are among Asia’s fastest-growing economies, with the World Bank estimating this year’s expansion will reach 6.5 percent for Myanmar and the Philippines, and 6.6 percent for Vietnam.
The lack of liquidity and of regular, reliable corporate information in frontier markets are not a source of worry for Mr. Garcia. As a long-term investor, he keeps his positions until they hit his perceived potential based on the companies’ growth prospects. With jumps of more than 50% last year, it’s his San Miguel Food and Beverage, Inc. and Filinvest Development Corp. shares that did the trick — he’s had them since 2015. He’s keeping his Philippine stock holdings unchanged for now.
“I buy stocks nobody loves,” he said. “I find my stocks in the market subset that’s overlooked, under-researched, misunderstood and under-owned by institutions. It’s when everybody wants to hold and my targets are achieved that I say it is time to go and look for the next gem.” — Bloomberg

PHilMech to launch three demonstration centers

THREE technology demonstration centers will be set up in Camarines Sur, Leyte and Davao this year by the Department of Agriculture’s (DA) Philippine Center for Postharvest Development and Mechanization (PHilMech).
“All of out research and development resources will be launched in the regional centers, depending on their appropriateness for each region,” Rodolfo P. Estigoy, PHilMech Chief Science Research Specialist for Agricultural Extension, Development Communication, Rural Development, told reporters in a briefing in Quezon City on Friday.
“That’s where we will hold our regional training courses appropriate for the areas) for agricultural extension workers, farmer leaders, and agricultural engineers,” Mr. Estigoy said.
Mr. Estigoy said that PHilMech alloted P5 million each for each center, for the initial development stage.
According to Mr. Estigoy, businesses can also invest in PHilMech’s equipment.
“If there are businessmen who want to invest in our new technology, they will just incorporate these to their businesses. We will teach them,” Mr. Estigoy said.
The use of the facilities in the regional centers are free of charge, Mr. Estigoy said.
The equipment to be demonstrated include corn mills, impeller-type rice mills for brown and white rice, cassava diggers, and moisture meters.
“We also accredit manufacturers,” Mr. Estigoy said, referring to manufacturers who are interested in producing PHilMech’s designs.
Farmers, either individual or cooperative members, are welcome to the regional centers, Mr. Estigoy said.
The regional center in Camarines Sur will be the first to be launched on Feb. 20. — Reicelene Joy N. Ignacio

Peso to rise ahead of Fed review

THE PESO is seen to strengthen against the dollar this week as market players expect the US Federal Reserve to keep its benchmark rates unchanged.
The local unit ended last week at P52.535 versus the greenback, recovering from the P52.86-per-dollar finish on Thursday. Week on week, however, the peso weakened slightly from its P52.515 finish last Jan. 18
A market analyst said in an e-mail that the dollar is expected to weaken against the peso ahead of the first Fed policy meeting this year amid growing expectations of dovish hints from the central bank in response to signs of slowing growth.
“In the first three days of the week, the greenback is expected to weaken, as investors anticipate some dovish guidance from the US Federal Reserve during its January 2019 meeting,” the analyst said.
“While the US Federal Reserve is expected to keep its policy rates unchanged and perhaps maintain its view of two more rate hikes this year, it may increasingly open the possibility of a temporary pause in its rate tightening,” the analyst added.
Meanwhile, Rizal Commercial Banking Corp. economist Michael L. Ricafort said signals from US Commerce Secretary Wilbur Ross indicating the US-China trade talks may still be far from resolution “weighed on the US dollar vs. major currencies.”
US and Chinese officials are set to meet in Washington for another round of trade talks, with a month remaining before their truce expire.
“[However], this could be partially offset by the three-week reopening of the US government shutdown,” Mr. Ricafort added.
He also noted that continued net foreign portfolio inflows as well as expectations of lower inflation rate in the coming months would also support the peso, or at least limit any peso weakness this week.
For this week, Mr. Ricafort expects the peso to trade between P52.30 and P52.60, while the analyst gave a wider range of P52.10-P52.80. — Karl Angelo N. Vidal