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Treasury raises P20B from bond tap facility

THE GOVERNMENT raised an additional P20 billion via the facility. — KARL ANGELO N. VIDAL

THE GOVERNMENT raised another P20 billion through the 10-year bonds on Tuesday after it opened its tap facility to accommodate strong demand from investors.
The Bureau of the Treasury (BTr) made a full award of the Treasury bonds (T-bond) it offered through a tap facility, which was opened from 2 to 4 p.m. on Tuesday for its market makers.
The 10-year instruments, which fetched a coupon of 6.875%, carry a 6.829% average based on the yield fetched during the bond auction. The average rate is 14.6 basis points lower than the 6.975% rate fetched when the 10-year bonds were last offered last month.
The Treasury has already raised a total of P75.91 billion from the tap facility after opening it for six straight auctions.
Last Monday, the Treasury also offered one-year Treasury bills through tap facility, accepting all bids amounting to P300 million.
The 10 market makers allowed to participate in the tap facility are Bank of the Philippine Islands, BDO Unibank, Inc., China Banking Corp., Citibank Philippines, Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank & Trust Co., First Metro Investment Corp., Rizal Commercial Banking Corp. and Security Bank Corp.
These financial institutions are given privileges such as the facility in exchange for obligations like submitting rate bids within a prescribed range.
Following Tuesday’s auction proper, National Treasurer Rosalia V. De Leon said market participants are now looking to park their funds in longer-dated bonds as inflation is expected to decelerate and amid ample liquidity onshore.
Following its policy meeting last December, the central bank said it expects inflation to return below four percent by the end of the first quarter, well within the 2-4% target band of the government.
Sought for comments, a bond trader said Tuesday’s tap facility offer was a successful one on the back of strong demand from market players.
“It was a success given the strong demand for the 10-year bonds, since it fetched tenders reaching P50 billion during the T-bond auction,” the trader said in a phone interview.
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

Seya tackles classics with a twist and urban farming


By Michelle Anne P. Soliman, Reporter
SANDWICHED between two pet service stores along Katipunan Ave. in White Plains is a two-month-old restaurant adorned with produce — white bitter gourd, chili, tomatoes, and edible flowers — in pots of varying sizes.
According to restaurant owner and chef Isaiah “Seya” Ortega, he originally wanted to pursue a farmer’s kitchen concept for his new business. To avoid the notion of the place as “too healthy” or “very farm to table,” he and his partners decided to name the restaurant after him since it was a chef-driven establishment. “Hopefully, the food will stand out. Never mind the name, the food should be the real star,” Mr. Ortega told BusinessWorld during last week’s visit.
Compared to his previous business ventures — a small mall-based food business and a restaurant specializing in sinigang (sour soup) — where he was restricted to theme-based dishes, Mr. Ortega said that opening this restaurant has allowed him to explore his creativity as a cook. “In terms of the menu, I have more freedom since we serve [a mixture of] Filipino and international cuisine,” he said.
“I don’t want to stick to a certain cuisine. With my background in cooking, you’ll have the urge to really practice what you’ve learned,” added Mr. Ortega, who took up a vocational course in culinary studies for two years at Center for Culinary Arts Manila before earning a degree at De La Salle-College of Saint Benilde (DLS-CSB).
Seya’s Kitchen serves 13 main dishes to keep the choices concise and simple for the diner. Changes in the menu are done every month which allows the chef to create and explore more dishes.
Mr. Ortega noted that the dishes are not fusion but a “use of the available ingredients to enhance a cuisine.”
For lunch that day, Mr. Ortega served coconut garlic squid adobo (meat stewed in vinegar) which he explained includes Japanese ingredients such as bonito flakes. The torch salmon fillet with Thai basil lemongrass broth was a prepared with a combination of cooking techniques as the salmon done in Japanese aburi style (flame seared) and flavored with Thai herbs. The roast pork for the special lechon bagnet with lechon sauce and vinegar went through a 48-hour cooking process to achieve the right flavor and texture; Mr. Ortega describe it as “how you would cook bagnet (a deep fried crispy pork belly dish) but season lechon (whole roast pig).” For dessert, he served salted caramel and moist chocolate liquor cakes in cans by Pastry Amore.
Mr. Ortega plans to convert the restaurant’s outdoor space into an edible landscape. He said that having an urban farm in Manila makes the ingredients more accessible for him rather than sourcing them from his farm in Batangas. In the future, he plans to include the produce of his small urban farm as part of the restaurant’s product line.
Mr. Ortega noted cooking a better version of dishes as his philosophy as a chef. “It is very easy to cook something so good. But it’s very hard to cook something so bad,” he said.
PLANTING IN YOUR OWN SPACE
Mr. Ortega’s introduction to farming began with planting his own herbs which he used in cooking competitions he joined as a culinary student. He further enriched his knowledge through attending seminars, and reading magazines and online articles on urban farming.
“When you say urban farming per se, [it means] you’re producing more than enough for yourself. It will depend on how big your space is for it,” Mr. Ortega explained, differentiating it from gardening which is done as a hobby or to “supply enough for yourself.” He added that vertical farming is the current popular method.
There is no minimum area requirement for farming he said, noting that gardening may be done in spaces as small as one’s window or porch. “It’s not really a space issue. It’s more about how you creatively utilize the space for your crop,” he said.
Given an example of a family of five, Mr. Ortega explained that “what they eat within a week is more than enough for them to have a cycle of food when they try to plant their food.”
For households that plan to start growing their own food, composting is practiced in order to produce organic fertilizer.
He pointed out that using banana peels and eggshells in compost give “more than enough calcium for the soil for an entire month.”
Companion planting or planting crops in proximity with each other is another suggestion. “Some types of plants grow better if they are accompanied by certain type of plant of a different variety since they benefit from each other,” he said.
For Mr. Ortega, learning about farming alongside cooking makes one aware of a crop’s distinct taste and the best time for it to grow. Cautioning that it may sound boastful, he said, “It will make you a better cook.”
“If you learn both practices, you get to be more intimate with the ingredients,” he added. “Most of the time, the chefs would work with farmers. They ask about how you cook it. But they fail to ask how you plant it and care for it.”
Based on Mr. Ortega’s observations, one advantage of growing your own food is a decrease in food expenses.
“I think farming should be a common knowledge for everyone. It’s more rewarding to take care something, harvest it, and not just rely on groceries or other food sources.”
He pointed out that for most of history the majority of humans were involved in farming and raising livestock. That changed with industrialization. Now farmers are in the minority. “So, for me that’s quite sad. It developed a negative connotation of being ‘dirty’ and ‘muddy.’ It’s part of it. But it’s not like that. There’s more to it than just that,” said Mr. Ortega.
Farming requires planning and patience. “It took me a really long time to really somehow understand. I’m not saying I mastered it. It takes time,” he said.
Seya’s Kitchen is located at 42 Katipunan Ave., White Plains, Quezon City. It is open Tuesdays to Saturdays, 11.30 a.m. to 2.30 p.m. and 6 to 10 p.m., and Sundays at 10 a.m. to 2.30 p.m. and 6 to 10 a.m. For inquiries, call 911-4734 or 0917-674-1445, or visit www.facebook.com/seyaskitchen/.

Wireless firms put big 5G gambles on display at CES

FIFTH-GENERATION wireless technology may one day handle sci-fi tasks like guiding driverless cars, but today’s consumers are more concerned with making their phones work faster — and that’s not lost on mobile carriers headed to CES in Las Vegas.
In coming weeks, AT&T Inc. will introduce an interim “5G E” service that promises 50% faster Internet speeds in many places. Verizon Communications Inc. was out first in September with a 5G home service, pitching ultra-high-definition TV and speeds up to 20 times faster.
Whether it’s the more-distant future or improvements just around the corner, CES is the place for carriers to connect with investors and members of the media who’ll carry their message to consumers. Verizon and AT&T have bet their futures on the next generation of wireless technology and are eager to show what it might look like.
Full-fledged 5G networks are still more than a year away, but selling investors on the idea, and touting eye-popping speeds to jockey for the lead in consumers’ minds is every bit the game — even if it means slapping that label on technology that isn’t really fifth generation.
AT&T is on a multistep path to 5G. Starting this spring, it will rebrand recent models of 4G Android phones as 5G Evolution or “5G E,” a transitional step intended to reflect speed and capacity upgrades to the carrier’s current network.
NOTICEABLY FASTER?
And if it’s noticeably faster, mobile customers might not split hairs about 5G definitions, BTIG LLC analyst Walt Piecyk said in a note Monday.
“The broad availability of ‘real 5G’ could be years away, providing AT&T with a window of opportunity to surpass Verizon’s historical dominance as the wireless network leader in the US,” he said.
Verizon Chief Executive Officer Hans Vestberg is hosting his company’s CES demonstration Tuesday and will attempt to show, through several examples, how 5G is entirely different from current technology. He’s expect to demonstrate how the new technology can virtually eliminate latency — those annoying delays when you’re trying to connect — enabling services that aren’t possible now.
Beyond speed, Verizon will try to show how 5G networks can support 200 times more connections than 4G — or more — within the same service area.
On Wednesday, AT&T plans to reveal deals to help cities automate some services and embed more communications technology in cars — steps that are consistent with its slower run-up to genuine 5G technology. Late Monday, the company said it will work with Toyota Motor Corp. and telecom provider KDDI Corp. to provide customers with services like Wi-Fi hot spots, remote starting and remote diagnostics on its existing network.
5G ARMS RACE
In addition to serving as a theme for this year’s tech show, 5G shoulders some other heavy burdens, including in the area of national security.
China, for example, has made leading transition to 5G a priority and that’s set off warning bells among US executives and the military. Charlie Ergen, co-founder and chairman of Dish Network Corp., has accumulated billions of dollars in unused bandwidth and likens his development of a network to the Manhattan Project — the US race to be first with a nuclear weapon.
Last week, a retired US general said China’s desire to dominate new wireless technology poses a global threat that should be thwarted by a new, secure network.
China will gain a capability for mayhem and mass surveillance if it dominates advanced 5G networks that link billions of devices, retired Air Force Brigadier General Robert Spalding said in a memo that was obtained by Bloomberg News.
“The more connected we are, and 5G will make us the most connected by far, the more vulnerable we become,” said Mr. Spalding, who left the National Security Council last year.
Beyond the military implications, the build-out of 5G could also unleash some $200 billion in estimated spending on product development and networks. And for carriers including Sprint Corp. and T-Mobile US Inc., which are awaiting approval of $26.5 billion merger, 5G can open the door to sales of advanced services like nationwide broadband and TV. — Bloomberg

DoubleDragon partners with Cargill-Jollibee JV

DOUBLEDRAGON Properties Corp. has teamed up with the local unit of multinational firm Cargill for the development of industrial facilities in the country.
In a statement issued Wednesday, the listed property developer said its industrial leasing unit CentralHub Industrial Centers, Inc. has formed a strategic partnership with Cargill Joy Poultry Meats Production, Inc. (C-Joy) for the expansion of its industrial leasing facilities.
DoubleDragon said the partnership will enable Cargill to achieve its target to have about 30 hectares of industrial development space in several locations in the country.
C-Joy is a joint venture of the US-based Cargill and Jollibee Foods Corp. (JFC). It currently operates a poultry processing plant in Santo Tomas, Batangas, which supplies dressed and marinated chicken for JFC brands such as Jollibee, Mang Inasal and Chowking.
“This partnership with Cargill is in line with DoubleDragon’s vision to make CentralHub the leading provider of industrial complexes in the Philippines. These industrial facilities will add a substantial amount of leasable space to our growing leasable portfolio nationwide,” DoubleDragon Chairman Edgar J. Sia II said in a statement.
CentralHub targets to have 100,000 square meters of leasable industrial space from a total of eight projects by 2020. The sites are spread out across Luzon, Visayas, and Mindanao.
“We are very optimistic for the growth prospects of CentralHub as we expect the demand for modern industrial complexes to continue to increase significantly as more companies will require modern standardized multi-use warehouses suited for commissaries, cold storage, light manufacturing and logistic distribution centers,” DoubleDragon Chief Investment Officer Marianna H. Yulo said in a statement.
Ms. Yulo added that CentralHub has the potential to be the first industrial REIT (real estate investment trust) in the country.
Industrial leasing is one of the company’s four segments, the others being mall, office, and hotel. Mr. Sia earlier said the company will generate P10.52 billion in sales and rental income from these four units in 2019.
DoubleDragon, which is led by Mang Inasal founder Mr. Sia and JFC founder Tony Tan Caktiong, is ramping up its expansion to have 1.2 million sq.m. an overall leasing spaces by next year. This will include 100 CityMalls, 5,000 hotel rooms under the Hotel101 and JinJiang Inn Philippines brands, and eight industrial hubs.
DoubleDragon generated a net income attributable to the parent of P966.02 million in the first nine months of 2018, 19% higher year-on-year, following a 16% uptick in gross revenues to P4.72 billion.
Shares in DoubleDragon jumped 5.15% or P1.05 to close at P21.45 each at the stock exchange on Wednesday. — Arra B. Francia

zGlue pitches ‘chiplets’ to make custom chips for start-ups

A VETERAN of the world’s two biggest chipmakers is hoping to make affordable custom silicon chips for start-up companies by rolling out new software on Monday at the Consumer Electronics Show in Las Vegas.
Custom-designed chips power top-tier smartphones from companies such as Apple Inc. and Huawei Technologies Ltd. But they are costly to design and difficult to make, requiring huge teams of engineers and years to complete, with special design software that can cost millions of dollars a year.
Ming Zhang founded Mountain View, California-based zGlue Inc. after a career at Intel Corp. and the chipmaking division of Samsung Electronics Co. Ltd., where he helped work on Intel’s first mobile processors and the designs for some of Samsung’s chips. zGlue, itself a small start-up with only a few dozen employees, aims to decrease the complexity and cost of custom chips and launched its full system on Monday.
To do that, Mr. Zhang’s zGlue has broken up complicated chip designs into “chiplets” that can be combined on a single chip using free Web-based software. The chip uses a special bottom connective layer that gives the chiplets a speedier connection and smaller footprint than if they were each made as individual chips on a circuit board. The process is similar to technology recently introduced by Intel to stack different circuits together for faster chips.
zGlue offers three things to start-ups: A pre-set library of the chiplets, software to combine them without having to know complicated chip-design rules, and managing the relationship with the sprawling centralized chip factories that will ultimately manufacture them.
Foundries like Taiwan Semiconductor Manufacturing Co. Ltd. are accustomed to dealing with large customers such as Apple or massive chip firms like Nvidia Corp. or Qualcomm Inc.
But Mr. Zhang told Reuters the key for start-ups is to get the chips made at a price they can afford. To that end, zGlue on Monday also introduced a program where zGlue will pool its small customers’ orders and work with TSMC’s chip factories to get them made faster than if the start-ups went to TSMC on their own.
“We are trying to make this available to anyone. We have a software tool so that anyone can go from a design on a napkin to receiving a chip in a month,” Mr. Zhang told Reuters in an interview. “All these [larger] companies are making amazing technology, but they’re keeping it for themselves.” — Reuters

Now under Udenna, Conti’s plans for more branches with Instagrammable interiors

CONTI’S Bakeshop and Restaurant, the well-loved source of holiday Mango Bravo cake along with other goodies, was gobbled up by Davao-based Dennis Uy’s Udenna Corp. last year. As it stands, expect a few changes in the coming year for the familiar brand including a major expansion.
Conti’s officially opened its newest branch at Gateway Tower in the Araneta Center, Quezon City on Jan. 8. It is the chain’s 22nd branch, and the second to open since its Udenna Corp. acquisition (the first was in Festival Mall).
The chain was founded by three sisters: Cecille Maranon, Carole Sumulong, and Angie Martinez, who shared the maiden name Conti. The bakery and restaurant was founded in 1997 from their kitchen in Parañaque. The sisters expanded it to 20 branches around Metro Manila, and currently hold 30% of the company, while the majority of 70% has been bought by Udenna Corp.
Joey Garcia, CEO for Conti’s, told BusinessWorld that the changes to expect with Conti’s in 2019 would include a thrust in store development: from redesign to expansion. “Hopefully, we can open another 20 stores,” he said. Conti’s Business Development and Marketing Director, Michael Martinez, said, “Make it 30.”
In any case, Mr. Garcia plans to double the store count for Conti’s, citing to their advantage good relationships with developers and landlords. “A lot of these developers are looking forward to working with us,” he said.
He also cited as a thrust the improvement of store designs for added efficiency. As well, there’s a search for relevance in the younger market. “Our stores, I must say, were not that ‘Instagrammable’,” said Mr. Garcia.
In line with the goal of a doubled store count, is the goal of bringing Conti’s locations closer to Metro Manila’s neighborhoods.
As well as Conti’s, Udenna Corp.’s shopping spree included the purchase of Enderun Colleges back in 2017. The company added these to a portfolio which includes the franchise for Japanese convenience store chain FamilyMart. The company also has dealings in shipping and logistics via Chelsea Logistics Holdings Corp., real estate and infrastructure ventures through Udenna Development and Udenna Infrastructure, respectively, and Phoenix Petroleum.
Speaking about the diversity of the Udenna Corp.’s holdings, Mr. Garcia said, “For us, I think what we bring in to the group is our expertise in shared services.” For example, since the culinary programs of Enderun Colleges are within Udenna Corp.’s reach, the chefs behind those programs can help with research and development of products and the restaurants.
If one worries about changing too much of the familiar, however, Mr. Garcia assured BusinessWorld that since the original founders are still on board, the changes won’t be too radical. “We will maintain what they have started, and we will get better,” said Mr. Garcia.
Earlier in a statement announcing the acquisition in September 2018, Udenna Corp. Chair and Founder Mr. Uy said, “We are very bullish on the Philippine food industry, which has expanded with the growing demand for convenience. Specifically, the Philippines food service industry amounts to roughly $7.2 billion and over the past decades has had annual growth of 15% to 20%. We believe this transaction brings strong synergies with our existing portfolio, which includes hospitality and tourism.”
“Having Conti’s is just one step,” said Mr. Garcia. “We will still want to grow our F&B group under the Enderun Food Group, which is part of the Udenna Corp.”
“Eventually, you will hear more news about Enderun Food having more brands.” — Joseph L. Garcia

Owner of Friday’s Boracay resort sees lower sales in seven months

BOULEVARD Holdings, Inc. said its Friday’s Boracay Resort reopened on Oct. 30, 2018. — HTTPS://WWW.FRIDAYSBORACAY.COM/

BOULEVARD Holdings, Inc. (BHI) reported a decrease in sales in the seven months ending December, as operations were still affected by the six-month closure of Boracay.
In a disclosure to the stock exchange on Wednesday, the company said sales dropped by seven percent to P10.74 million in December. On a seven-month basis, BHI’s sales further fell 42% to P29.42 million, versus P50.52 million in the same period a year ago.
BHI owns Friday’s Holdings, Inc., which in turn operates Friday’s Boracay Beach Resort.
The company attributed the negative performance to the closure of Boracay Island from April to October last year, upon orders by President Rodrigo R. Duterte to rehabilitate the renowned tourist destination.
BHI said it resumed the hotel operations of Friday’s Boracay Beach Resort last Oct. 30, and is upbeat on the business prospects on the island.
“With the reopening to local and international tourists which started on Oct. 26, 2018, Friday’s Boracay Resort management and staff are excited to welcome their guests on a successful relaunch with our continued efforts to make resort experience more enjoyable to our guests around,” the company said.
The company is also banking on the increase of travel agents promoting Boracay’s cleaner environment, which it said is comparable to its state in the 1980s. This could ensure the continuity of their business operations. — Arra B. Francia

BSP sets rules on loan limits for NSSLAs

THE CENTRAL BANK published new rules to streamline the process of computing loan limits for non-stock savings and loans associations (NSSLAs) to better manage credit risks.
The Bangko Sentral ng Pilipinas (BSP) through Circular 1026 published in a newspaper this week details changes to the computation of the single borrower’s limit (SBL) for these non-bank players. The measure seeks to enhance safeguards against over-lending.
NSSLAs collect the savings of its members and provide long-term financing for homes and extend personal loans. This is usually formed by employees and officers in one company, as well as government employees in an agency including member-retirees and their immediate family members.
Meanwhile, SBLs put a cap on the amount which a financial firm can lend to a certain person or institution in order to minimize risks in the case of the borrower’s default.
“While the Bangko Sentral recognizes that the NSSLAs have to adequately serve their members’ financial needs, their lending operations shall be bound by the standards and expectations set forth in the NSSLA Law and its implementing rules and regulations,” the circular read, as signed by BSP Governor Nestor A. Espenilla, Jr.
The new rules break down the computation of loan limits for member-borrowers. In general, credit lines extended to one person must not exceed the member’s deposits and capital contributions, plus 12 months’ worth of his or her regular salary.
A variable limit is also allowed, which entails 70% of the fair market value of a property which has been posted as collateral for a previous loan. Appraisal may be done in-house if the asset is worth below P5 million, but independent appraisers must be tapped for properties with a higher value.
“The amount of loans to be used in determining compliance with the SBL of a member shall be the sum of gross amount of the new loan he applied for and the total outstanding balance of his existing loans with the NSSLA,” the issuance also noted.
The BSP also places the burden on the financial firm’s board of trustees to “adopt appropriate policies and procedures” to monitor their compliance to the SBL, which should be included in the NSSLA’s risk management system.
An individual borrower’s loan limit must be computed every time a person gets a loan approved or restructured. For their part, NSSLAs shall keep documentary proof to support their SBL computations. They are likewise required to submit a quarterly report to the regulator on their compliance to the loan limits.
The central bank has been tightening rules on non-bank firms as they seek to tighten its watch on the financial sector.
In 2018, the BSP also raised the standards on NSSLAs by installing a compliance risk management system and capping service fees.
These non-bank lenders have also been prohibited to engage in unfair practices like recognizing unused insurance premiums as income, limiting capital contributions or concentrating control to family and relatives, granting unauthorized salaries, and handing out new or additional loans with poor credit history, among others. — Melissa Luz T. Lopez

Sake, vegans and cannabis: Seven ways wine will change in 2019

By Elin McCoy, Bloomberg
THE WINE world can change faster than you’d think. Upended by turbulent politics, 2018 was beset with trade wars, ongoing Brexit instability, and more climate-change-driven chaotic weather events. All this made some wine regions winners, others losers, while investors scored big time: Fine vino outperformed stocks and bonds, according to Liv-Ex.
This year promises similar contrasts, surprises, and the continuation of some of last year’s trends. If you think everything pink to drink has already happened, for example, you would be wrong. Rosé sour beer is about to be a thing, while rosé love is even hitting sports figures such as basketball All-Star guard Dwyane Wade. His wine project with Napa wine maker Jayson Pahlmeyer released its first rosé at a very pricey $75.
Expect the link between technology and wine to expand, with new fine wine trading apps, AI, robots in vineyards, and more. Ditto more good bubbly, from just about every wine region in the world.
Here’s what else I see in my crystal glass for 2019:
WHAT’S OLD IS NEW
The rediscovery of old, abandoned vineyards and embrace of forgotten varieties will continue to feed our voracious thirst for tastes beyond the classics — and may reveal useful ways to adapt to climate change.
Chile, for example, is working to rescue ancient vineyards planted by Spanish explorers centuries ago, as well as resurrect old wine making techniques. Agricultural engineer Max Morales, at the forefront of efforts, is also helping to create wines from them.
Unfamiliar native and hybrid grapes, such as pais, Marquette, petite arvine, and zibibbo are in your future.
Don’t understand the appeal? Dip into one of 2018’s most entertaining wine books, Godforsaken Grapes.
CANNABIS INFUSIONS ARE ON THEIR WAY
The first time I tasted marijuana-laced wine was a decade ago in Mendocino, where a handful of wine makers (my lips are sealed) surreptitiously infused pot cuvées for themselves and their friends.
With the legalization of pot in California, Canada, and elsewhere last year, wine and weed mixes are coming. Canadian investment bank Canaccord Genuity LLC suggested to Business Insider that marijuana-infused beverages could become a $600 million market in the US in the next four years. Constellation Brands Inc. has already invested in cannabis companies.
Among the first is Sonoma’s Rebel Coast Cannabis Infused Sauvignon Blanc ($60), with about 20 milligrams of THC in each bottle. Legally you can’t mix alcohol and THC, so the alcohol has been removed. As a result, a glass of this wine has only 35 calories (not 150 as with regular wine) and is sold only through licensed California THC dispensaries.
Bring on the buzz…
CLIMATE CHANGE WILL PUSH VINEYARDS TO EXTREME FRONTIERS
Cool regions aren’t necessarily cool anymore.
Some wineries, like that of the famous Catena family in Argentina, see one solution in planting vineyards at much higher altitudes. Others are heading farther north to more marginal climes. You’ll see more wines from both locations in 2019.
Wines from Idaho (and even Minnesota) are promising, and famous Rhone Valley wine maker Louis Barruol is creating delicious pinot noir in New York’s Finger Lakes district. One new, much buzzed-about winery, Pinard & Filles, is hunkered in icy Quebec, and a few of the winery’s cuvées, championed by natural wine aficionados, are now available in the US.
DRINKING WINE ON AIRLINES WILL REACH NEW HEIGHTS
You’re trapped in place for hours on end as you hurtle at 35,000 feet toward your destination, and really, watching movies can hold your attention for only so long. Why not enjoy a wine experience?
Global private jet company VistaJet is the first to completely cater to your wine passion, but other private airlines will surely follow. VistaJet has studied the effects of air pressure and air quality on wines served on board and chosen accordingly. Their new wine program also includes blind tastings, bespoke wine tours for the perfect detour (such as three days with Marchesi Antinori at his estates), and even a concierge to help you buy en primeur.
VEGAN WINE WILL BECOME A THING
The focus on health and wellness is making veganism one of the fastest-growing consumer trends, with sales of plant-only foods rising 20% in the US in 2018, to $3.3 billion.
This fringe-to-niche development will lead to more vegan-friendly wines, with key info on the label. In 2018, UK. retailer Majestic Wine added vegan (and vegetarian) symbols to the information for each wine on its Web site.
But wait, how are fermented grapes not vegan, anyway?
Many wine makers use fining agents derived from milk, egg whites, or animal and fish proteins to remove heavy tannins from reds and give white wines clarity. Though removed in the final product, their temporary presence makes the wines nonvegan. Vegan wines replace these with clay or charcoal-based alternatives.
SAKE IS TAKING THE STAGE
When the chef de cave of Dom Pérignon says his next project is making sake in Japan, you know big change is coming. Richard Geoffroy, who spent 28 years as the wine maker of DP, retired at the end of 2018 and is working on a joint venture with sake brewery Masuizumi that will launch in September.
Sophisticated, premium examples of sake are just beginning to be the darlings of sommeliers in non-Japanese restaurants, where they turn up on tasting menus and wine lists as alternatives to wine. And as if to underscore the drink’s coming importance, glassmaker Riedel introduced a new Junmai glass last spring, designed for this category of very complex sakes.
BOTTLE BUYING GOES LUXURY,
HIGH-TECH, INSTANT
Buying wine could involve much more than grabbing a bottle at your local shop. The latest from Vivino is a way to scan a bottle you’re enjoying in a restaurant, purchase it, and arrange to have it delivered to your home, all in under a minute.
Self-serve booze vending machines will surely be part of your future, especially for wines in cans and, as at the Mama Lion supper club in Los Angeles, for 187-milliliter splits of Champagne.
Brick-and-mortar stores will woo your actual presence with fun in-shop experiences like those at London’s Harrods, whose luxurious new Fine Wines and Spirits Rooms offer sniffing at an aroma table and interactive info play.
And anticipate more ways than ever to get your hands on rare bottles. Renowned London retailer Berry Bros. & Rudd just launched its services in the US, giving American customers the chance to buy other clients’ wines through its BBX trading platform, while New York’s new Pressoir wine looks like one-stop shopping for the serious imbiber. Besides the chance to buy difficult-to-obtain exclusive wines, it offers educational tasting sessions and bespoke wine trips.
AND BEYOND…
Naturally, I still have plenty of questions: Will synthetic wines — chemically identical versions of great names — really catch on? Will gimmicks such as the new wine condoms that slip over the neck of opened bottles really “protect your pinot” as the product promises?
I’ll be reporting on these stories and many more in 2019.

Apple’s TV deals with Samsung, LG show shift to services

APPLE INC. and Samsung Electronics Co. announced a deal that only recently would have seemed unthinkable: The iPhone maker will begin offering iTunes movies and TV shows on its arch rival’s TV sets.
Coming ahead of the annual CES technology show in Las Vegas, Sunday’s move demonstrated Apple’s shift toward developing into a tech- and media-services company as sales of gear like the iPhone continue to wane. It’s “further evidence that Apple is willing to change its hardware-first approach and work with third parties to boost services revenue,” said Gene Munster, a longtime Apple watcher.
The deal also includes support for AirPlay, which means iPhone users will be able to stream video content from their phones to Samsung TVs. On Monday, LG Electronics Inc. and Vizio Inc. said their latest sets will also support AirPlay, creating a larger base of products where users can stream Apple videos. The LG and Vizio deals, however, do not include the iTunes integration like the one with Samsung.
Last week, after Apple shocked investors by saying iPhone sales missed expectations for the holiday quarter, it pointed to record services revenue of $10.8 billion for the quarter.
“With services a key part of the Apple flywheel and one of the only silver linings in an otherwise dark period of growth, Cook & Co. need to double down on content and distribution partners going forward,” according to Dan Ives, an analyst with Wedbush Securities.
Apple and Samsung were at war for years over smartphone patents, with Apple accusing its rival of copying the iPhone’s design. After multiple trials and Apple being awarded millions of dollars, the two companies eventually settled in June 2018, ending litigation.
BEST OF ENEMIES
Beyond lawsuits and hardware competition, the companies have still long shared a close partnership, with Apple relying on Samsung for components such as screens in the latest high-end iPhones. In recent years Apple has taken steps to wean itself off Samsung by developing its own future screen technology and device processors.
The “deal shows that perhaps Apple doesn’t quite view Samsung as the enemy it used to,” Michael Gartenberg, a former Apple marketing executive, wrote in Twitter. “There are others both Apple and Samsung should worry about. Or the enemy of my enemy is my friend.”
The addition of iTunes on Samsung TVs comes just weeks after Apple opened up Apple Music to the Amazon Echo. In 2015, when it launched its streaming music service, it released a version of it for Android. In 2003, Apple opened up iTunes to Windows PCs, which Apple co-founder Steve Jobs likened to “giving a glass of ice water to someone in hell.”
SPOTIFY COMPETITION
The debut of Apple Music on Amazon Echos and Android devices made business sense. Apple Music is based on the 2014 acquisition of Beats Music, which was known for being a cross-platform music service.
Apple has also been seeking to rapidly grow user numbers as it seeks to compete with Spotify Technology SA, and placing the service on the world’s most popular smartphone operating system and voice control service will help that, in addition to generating an extra $10 a month per customer.
It also exposes non-Apple hardware users to the company’s products, potentially pushing them to Apple devices when it is time to upgrade.
The move will give Apple another revenue source for people who purchase movies and TV shows through iTunes, and signals another potential slot for the company to place its original video content service, which it plans to introduce as early as this year.
MORE REACH
In order to compete with Netflix and Amazon Prime’s original content offerings, which have been around for a number of years, Apple will need as much reach as possible. Samsung TVs held 33% of the smart TV market last year, beating out Vizio, LG, and Sony Corp., according to Statista.
According to Mr. Munster, the deal also signals that Apple has no imminent plans to enter the physical TV space. Opening up iTunes to Samsung TVs means that Samsung television users no longer need to purchase an Apple TV set-top-box to access Apple content. — Bloomberg

Regulator renews MGI’s certificate of compliance

PETROENERGY Resources Corp. said on Wednesday that the certificate of compliance of Maibarara Geothermal, Inc. (MGI) had been renewed by the Energy Regulatory Commission (ERC), allowing the unit to continue its commercial operation.
MGI President Francisco G. Delfin, Jr. said the renewal of the certificate “testifies to the continuing technical, operational, and financial compliance of our two geothermal facilities to regulatory standards.”
The ERC notified MGI on Jan. 8, 2019 that the renewal application of its certificate of compliance (CoC) for the 20-megawatt (MW) unit 1 was approved by the commission en banc on Dec. 4, 2018. The certificate is proof that a power plant complies with the applicable regulations, making it safe to switch on and operate.
Mr. Delfin, who is also PetroEnergy vice-president, said the release of the certificate at the start of 2019 “is auspicious as MGI achieved a record annual gross generation of more than 240 GWh (gigawatt-hours) in 2018.”
The listed energy company also said that the ERC had incorporated MGI’s 12-MW unit 2, which has a separate certificate issued on April 16, 2018, into the renewed certificate of compliance of unit 1.
The move was in compliance with ERC Resolution No.16, Series of 2014, which requires the consolidation of all individual CoCs of one generation company under a single certificate.
Both Maibarara generating plants are now cleared for commercial operations from Oct. 2018 to Oct. 2023, when the next five-year renewal is set.
MGI is a joint venture among PetroGreen Energy Corp., with a 65% stake, Phinma Energy Corp. (25%), and PNOC Renewables Corp. (10%). PetroGreen is the renewable energy subsidiary of PetroEnergy.
On Wednesday, shares in PetroEnergy rose 0.81% to close at P3.74 each.
MGI’s unit 2 started exporting power to the Luzon grid around the first quarter of 2018 after it was successfully synchronized to the transmission system. Its power plant units are in Sto. Tomas, Batangas.
In December 2017, PetroEnergy said its second geothermal power unit had secured approval to participate in the wholesale electricity spot market, paving the way for its commercial operation.
PetroEnergy described MGI’s unit 2 as the fourth power generating plant completed by the Yuchengco-led company and put online in four years.
It marked the second wave of the company’s investment and operation in the renewable energy sector after the first wave with the 20-MW Maibarara unit 1 in February 2014, the 36-MW Nabas unit 1 wind farm in June 2015, and the 50-MW Tarlac unit 1 solar facility in February 2016. — Victor V. Saulon

FOMC minutes to reveal debates behind unanimous rate decision

INVESTORS MAY have moved on from the Federal Reserve’s December policy meeting after Chairman Jerome Powell offered more-soothing remarks two weeks later, saying the central bank is “prepared to adjust policy quickly.”
But don’t dismiss the minutes of the session, which are due out at 2 p.m. Wednesday in Washington. The report may provide important clues about the level of solidarity among officials at the Dec. 18-19 Federal Open Market Committee (FOMC) meeting, when policy makers raised interest rates and forecast further increases despite plunging stocks and pressure from President Donald Trump for a halt.
“These minutes will still be relevant because they’re going to give us a sense of the debate within the FOMC,” said Michelle Meyer, head of US economics at Bank of America Corp. Rate moves are “still a committee decision, and understanding the division of views on the committee is important,” she added.
Here are four things economists will be looking for:
WHY ‘FURTHER GRADUAL?’
While an interest-rate hike had been fully anticipated by investors, many Fed watchers had expected the FOMC’s post-meeting statement would turn more dovish by dropping altogether the long-standing call for “further gradual increases.” Instead, officials merely tweaked the language to say “some further gradual increases” were still in their outlook.
“I’m sure there was further discussion about the ‘some further gradual,”’ said Sarah House, senior economist at Wells Fargo & Co. “Maybe it will show some reasons why they kept it in, or how close that decision was.”
BALANCE OF RISKS
Similarly, the committee stuck with an assessment that risks to their economic outlook were “roughly balanced.” Fed officials did add here that they would “continue to monitor global economic and financial developments,” but they might have gone further, acknowledging that risks had tilted to the downside, as many in financial markets believe.
Again, details of any debate around that decision could be illuminating. In addition, Jennifer Lee, senior economist at BMO Capital Markets, said she’s hoping for more information on what specific risks policy makers see as most prominent. For example, how much are they worried about softer growth in China or in Europe, and to what extent is the former driven by, or independent of, the ongoing trade war?
FINANCIAL CONDITIONS
Economists are also keen for details on how Fed officials viewed the tightening of financial conditions, which included a precipitous drop in stocks.
“I’ll be very interested in the paragraphs that talk about market events leading into the meeting, and were there concerns that the decision should have been altered,” said Carl Tannenbaum, chief economist at Northern Trust Corp. in Chicago.
The Fed’s rate hike was unanimously approved by the FOMC’s 10 voters, Tannenbaum said, “but beneath the surface there may be churn, and it will come out in the debate over how seriously to take market conditions.”
BALANCE SHEET
Economists would also welcome any signal on what officials plan to do with the Fed’s balance sheet, and on two levels.
Powell’s comments on Jan. 4 were reassuring to financial markets, in part because he said the Fed’s policy flexibility extended to the ongoing balance-sheet runoff, currently capped at $50 billion per month. Before last week, including at his Dec. 19 press conference, Powell had consistently said the balance-sheet trimming was “on autopilot.”
The minutes could show whether any officials were already calling for a rethink of that stance.
Second, market participants are hungry for a signal about the Fed’s long-term plans for sticking with its current set of tools for controlling short-term interest rates, or shifting back to a system based on a far leaner balance sheet. It’s not clear if that will come in the minutes, though.
“They are way overdue” in communicating more about which regime they’ll go with, Meyer said. — Bloomberg

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