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Treasury bills, bonds likely to fetch lower rates on inflation

GOVERNMENT SECURITIES on offer this week are expected to fetch lower rates as investor demand returns following the holiday season.
The Treasury is offering P20 billion worth of Treasury bills (T-bill) today. Broken down, the government plans to raise P6 billion each for the three- and six-month papers, and another P8 billion in one-year securities.
The government will also offer fresh 10-year Treasury bonds (T-bond) amounting to P20 billion on Tuesday.
Traders interviewed last week said the T-bills on offer today will likely fetch lower rates, with one saying yields could go down by 5-10 basis points across all tenors from the previous auction.
At its previous offering, the Treasury made partial award of the T-bills, borrowing just P4 billion out of the P15 billion it intended to borrow after rejecting all bids for the 182- and 364-day debt papers.
The rate of the three-month paper slid to 5.323%, down 2.7 basis points from the previous auction.
At the secondary market on Friday, the 91-day, 182-day, and 364-day T-bills fetched yields of 5.853%, 6.537%, and 6.773%, respectively, based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s Web site.
Meanwhile, the first trader said the 10-year bond auction on Tuesday could fetch a coupon rate of 6.85-7%.
The Treasury fully awarded the 10-year securities it offered last Dec. 4, raising P15 billion as planned versus tenders totalling P49.389 billion. The papers fetched a 6.975% average rate. The government even opened its tap facility to take advantage of the demand, raising P23.136 billion more.
“For the T-bonds, we’re expecting a demand twice the offer amount since it’s the start of the year,” the first trader added. “Investors will start to position so the demand might be strong.”
The trader added that market participants will factor in recent economic data such as the slower-than-expected December inflation.
Inflation continued to ease last month, registering a 5.1% print in December. This was slower than market expectations as well as the 5.2-6% estimate range of the central bank.
For 2018, headline inflation averaged 5.2% — faster than the Bangko Sentral ng Pilipinas’ 2-4% target range and the highest since 2008’s 8.2%.
“It looks like [the bond auction on Tuesday] will be a good one. Yields dropped [last] week following the move in US Treasuries and the [better-than-expected] Philippine CPI (consumer price index) data,” another trader said in a text message, giving a 6.8-6.9% forecast range for the 10-year bond yield.
The 10-year debt fetched 6.937% at the secondary market on Friday.
For this quarter, the government is planning to borrow P360 billion through domestic means. Some P240 billion will be borrowed this quarter through 12 weekly T-bill auctions. On the other hand, P120 billion worth of T-bonds will also be issued through six fortnightly auctions.
The state plans 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

Fertilizer prices rise

THE AVERAGE price of four grades of fertilizer rose year-on-year in November, the Philippine Statistics Authority (PSA) said.
The PSA said that the average price of Urea fertilizer rose 18.53% year-on-year to P1,102.05 per sack in November. The price was up 2.43% compared with October.
Prices rose in all regions except for MIMAROPA (Mindoro, Marinduque, Romblon and Palawan), PSA said. The top price of P1,350 was charged in the Autonomous Region in Muslim Mindanao (ARMM), while the lowest price of P1,030 was charged in Ilocos Region.
The average price of Complete fertilizer rose 3.64% year-on-year to P1,128.89 in November and rose 0.73% from October.
ARMM had the highest price for Complete fertilizer at P1,383.33 per sack, while Cagayan Valley had the lowest at P1,013.75. All regions posted price growth except for Bicol.
The average price of Ammosul fertilizer rose 10.75% year-on-year to P627 and 1.85% from a month earlier.
Prices rose in all regions except for Cavite, Laguna, Batangas, Rizal and Quezon (CALABARZON) and MIMAROPA. They were higest in ARMM at P947.50, while Cagayan Valley had the lowest at P538.75.
The average price of Ammophos fertilizer rose 8.34% year-on-year to P974.08 and rose 1.44% compared with October.
Prices were highest in the ARMM at P1,252.50, while they were lowest in Cagayan Valley at P897.88. Prices did not rise in CALABARZON and MIMAROPA.
The highest prices for Ammophos were recorded in Eastern Visayas at P1,092.50 while the lowest were in South Cotabato, Cotabato City, Cotabato Province, Sultan Kudarat, Sarangani and General Santos City (SOCCSKSARGEN) at P807.38. — Reicelene Joy N. Ignacio

Property firms interested in Fort Bonifacio lot

By Vincent Mariel P. Galang
SEVERAL PROPERTY firms showed interest in the Insurance Commission’s (IC) share in a 5,000-square meter lot in Fort Bonifacio, Taguig City.
Representatives from Filinvest Land, Inc. (FLI), Robinsons Land Corp. (RLC), and MySpace Properties, Inc. attended the pre-bidding conference conducted by the Bases Conversion and Development Authority (BCDA) at its office on Jan. 4. Representatives from construction firms also attended.
During the pre-bid conference, the interested bidders expressed concern over how the lot will be divided since only the IC’s share is up for auction.
BCDA officials said the winning bidder will have to discuss such matters with the property’s co-owner Landbank Leasing Corp. (LLC).
“It’s a 5,000 square meter (sq.m.) property. We’re not bidding out a 2,500 sq.m. lot or property. What we are bidding out is the… ideal share,” said Joshua M. Bingcang, chairperson of the BCDA asset disposition program committee.
Last week, the BCDA issued a notice inviting interested parties to bid for the IC’s share, representing half of the 5,000-sq.m. lot along Lawton Avenue, Fort Bonifacio. The minimum acceptable bid is set at P596.520-million.
Under the terms of reference, the BCDA said the lot can be turned into a mixed-use development with commercial, retail and office components.
The lot is surrounded by Megaworld Corp.’s McKinley West on the north, RLC’s Cyber Sigma Center commercial office building on the east, and the National Mapping and Resource Information Authority (NAMRIA) office complex on the west.
An adjacent lot is currently being leased by RLC from the BCDA.
The terms of reference may be purchased at the BCDA Corporate Center for a non-refundable fee of P100,000 in Bonifacio Global City, Taguig City until Jan. 22.
The deadline of submission of eligibility documents and final proposals and preliminary examination of bids is on Jan. 22, while the results will be announced on Jan. 31.
The announcement of the winning bidder and issuance of notice of award is scheduled on Feb. 7, while signing of the contract will be done between Feb. 8 to March 7.

These K-beauty products work nicely

By Zsarlene B. Chua
Reporter
AT THE tail end of 2018, Korean skincare cult favorite Dear, Klairs, officially launched in the Philippines with the presence of its brick-and-mortar shelves in select Watsons and BeautyBar stores in the country.
“It was maybe in 2016 when we noticed that we’ve been getting really good traffic [online] from the Philippines… and when we entered BeautyMNL we saw good results and that’s when we decided to launch our products offline,” Ryan Soungho Park, CEO of Wishcompany, Inc., told BusinessWorld in an interview in December at SM Makati.
Wishcompany is a beauty company whose brands include Dear, Klairs, Jungle Botanics, and By Wishtrend.
Launched in 2010, Dear, Klairs is a brand focused on “developing functional products even sensitive skin types can use,” said a statement.
Mr. Park said that while the entire Dear, Klairs catalog won’t be available in the Philippines, the favorites will be found on the shelves for purchase and that includes the Supple Preparation Facial Toner, Freshly Juiced Vitamin Drop, Gentle Black Deep Cleansing Oil and its sheet masks — Rich Moist Soothing Tencel Mask and Midnight Blue Calming Sheet Mask.
“The Philippines is known for loving all things skincare and makeup, most especially K-Beauty,” Mr. Park said before adding that this is the reason why they decided to come into the Philippines.
“We’re very optimistic with the Philippines, it’s a good time to invest more and meet our customers in person,” he added.
Dear, Klairs will have shelves in over 100 Watsons stores and 19 Beauty Bar stores but the focus for 2019 isn’t about growing their footprint, said Mr. Park as the company will focus on the “quality of the stores” and its selection more than the number.
TRYING THEM OUT
After the launch in December, this writer was given three products to try from the Dear, Klairs best-sellers line: the Supple Preparation Facial Toner (P1,150 for 180 ml), the Freshly Juiced Vitamin Drop (P1,200 for 35 ml), and the Gentle Black Deep Cleansing Oil (P1,200 for 150 ml).
I admit that I have not had the best experience with Korean skin care because I noticed that the things that I have tried — including the Laneige Water Sleeping Mask (P1,540 for 70ml) — gave me break outs or were unsuitable for my dry (and sometimes sensitive) skin, but I’d also heard a lot of good things from Dear, Klairs so I was excited to try the products out.
And the Dear, Klairs fans are not wrong — the products I tried for more than two weeks now gave me some of my best skin days in recent years, especially the toner which will probably replace my go-tos: Kiehl’s Calendula Extract Alcohol-Free Toner (P1,520 for 200 ml) and Human Heart Nature’s Hydrating Face Toner (P185 for 200 ml).
The Supple Preparation Facial toner is said to have ingredients like Lipidure and Beta-Glucan which are claimed to provide “deep hydration and help prepare the skin absorb the following products better and boost their effectiveness,” according to the bottle.
I use this right after I do my double cleanse — first with an oil-based cleanser (like the Gentle Black Deep Cleansing Oil) and a cleansing foam — and what I particularly love about this toner is how it really sinks into my skin and leaves it plump and hydrated. It has a thick, almost-but-not-quite gel texture so instead of using a cotton pad, I pour a few drops on my hands and pat the toner on my face.
It also has does not have a strong fragrance and smells a bit like baby powder, which is a plus.
Now, about the cleanser which contains “antioxidant-rich” black sesame oil and blackcurrant seed oil — I do like it but I do have some reservations: because while it does remove makeup and does not dry out the skin, the consistency is thicker than what I’m used to and, in my opinion, does not emulsify well when in contact with water.
I still prefer using my Biore Cleansing Oil (P349 for 150ml) because it disintegrates when in contact with water and doesn’t leave a still-oily surface (and it’s cheaper) though I have been using the Dear, Klairs cleansing oil on days when I think I need a deeper clean.
VITAMIN C PRODUCTS
Finally, the Freshly Juiced Vitamin Drop. For much of 2018, I was on the hunt for a good Vitamin C serum to brighten my face because while I have usually clear skin, the dryness leads to dullness which isn’t a good look.
This year, I tried Kiehl’s Powerful Strength Line-Reducing Concentrate (P3,675 for 50ml) because it contains 12.5% Vitamin C and hyaluronic acid (a humectant or moisture-binding ingredient that keeps the skin plump and hydrated) and those two things are what I need right? Wrong, because for some reason, the product gave me break outs so I decided to give it to my mother as I was not about to waste it because it did cost me a lot of money.
My mother loves it, by the way.
I also tried the Lauren & Co. Beauty Skin Vitamins Antioxidant serum with SPF 70 (P599 for 30 ml) which contains Vitamin C, Vitamin E, and other botanicals. I love it because it has SPF and has the nutrients I need for my face. My only gripe about this is that it doesn’t hydrate my skin — which probably makes this perfect for those with normal to oily skin. I still use it at daytime though because of the SPF and Vitamin E.
And then I arrived at the Freshly Juiced Vitamin Drop. I would admit that at first I was skeptical because most Vitamin C serums are encased in a dark glass bottles because Vitamin C does not react well in sunlight but Dear, Klairs’ serum was encased in a clear glass bottle — the press release said that the “non-irritating solution puts up a good fight against yellowing” because Vitamin C serums turn yellow when exposed to sunlight and this greatly reduces its efficacy.
So I tried the Vitamin Drop and initially, as the packaging suggested, I used it in combination with my night cream — I put one to two drops in my night cream before I applying it on my face as the packaging suggests this method for those with sensitive skin.
It did feel warm for a few seconds — like all Vitamin C serums — and after a few days I saw better skin texture and my skin brightened up a bit.
After a week, I decided to bite the bullet and apply it directly to my face with the fervent hope that it wouldn’t give me break outs. It didn’t and it actually brightened my skin.
I do use it only at night because I realized that using this in tandem with the Lauren & Co. serum makes me greasy.

Gov’t debt yields decline

By Christine J.S. Castañeda
Senior Researcher
YIELDS on government securities (GS) went down in the first trading week of the year amid lower inflation prospects.
GS yields — which move opposite to prices — dipped by an average of 11.28 basis points (bp) week-on-week, according to the PHP Bloomberg Valuation Service Reference Rates as of Jan. 4 published on the Philippine Dealing System’s Web site.
“The shortened work week opened with inflation forecasts below the 6%, pushing local yields lower on improved inflation prospects in the coming months,” said Nicholas Antonio T. Mapa, senior economist at ING Bank N.V.’s Manila branch.
“Friday’s inflation data release confirmed the downtrend in price gains, helping boost demand of fixed income assets to close out the week,” Mr. Mapa added.
For his part, Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, said: “The securities market has been actually performing well and has been considered to be one of the world’s best performers at the moment. Externally, there is expectation that the [US Federal Reserve] could reverse its policy tightening before the end of this year.”
“These factors may have been making government securities attractive and consequently increasing demand for such. Thus, driving yields downward,” Mr. Asuncion added.
Headline inflation eased to 5.1% in December, data from the Philippine Statistics Authority showed. This was slower than the 6% recorded in November but was faster than the 2.9% logged in the same month last year.
December’s print was the slowest pace since May’s 4.6%. The latest inflation figure was also lower than the 5.7% median in a BusinessWorld poll but fell within the 5.2%-6% estimate given by the Bangko Sentral ng Pilipinas (BSP).
For 2018, inflation averaged 5.2% — faster than the BSP’s 2-4% target range and the highest since 2008’s 8.2%.
At the secondary market on Friday, the 91- and 182-day Treasury bills were the only papers to post gains from a week ago, as their yields rose 7.7 bps and 2.3 bps, respectively, to close at 5.853% and 6.537%.
Meanwhile, the rate of the 364-day Treasury bills declined by 1 bp to 6.773%.
At the belly, yields on the two-, three-, four-, five-, and seven-year bonds fell 14.4 bps (6.741%), 17.3 bps (6.803%), 20.3 bps (6.813%), 21.9 bps (6.818%), and 19.1 bps (6.87%), respectively.
At the long end, the 10- and 20-year Treasury bonds also saw their yields decline by 12.8 bps and 11.7 bps, respectively, to end with 6.937% and 7.374%. The 25-year bond lost 15.6 bps to fetch 7.372%.
Moving forward, UnionBank’s Mr. Asuncion said: “I am expecting that yields would further go down as the external environment plays out as what global markets are expecting.”
“The performance of the local bourse may be a critical indicator moving forward,” he added.
For ING’s Mr. Mapa: “Market players will likely look to M3 (domestic liquidity) data to in the coming sessions while also looking to global developments for further direction.”

Sarangani abaca cooperative signs China supply deal

DAVAO CITY — A cooperative in Sarangani province is expanding its abaca production area to about 1,000 hectares as it started selling its products to China.
The Philippine Rural Development Project (PRDP), in an e-mail to BusinessWorld, said it is assisting the United Maligang Multi-Purpose Cooperative in Kiamba, Sarangani to maximize its output after a Chinese company ordered about 2.2 tons of its abaca products last month.
At present, the cooperative has a production area of about 600 hectares.
“They can meet the demand if abaca producers in Sarangani area consolidate,” PRDP said.
Some P35.7 million in PRDP funds will support enhanced production, processing, and marketing.
Included in the package are 74 portable stripping and dying machines for the weavers, hauling and delivery trucks, 56 heavy-duty spindle stripping machines, a pressing machine for abaca bailing and a forklift.
The PRDP is also building a processing center.
Beverly Pacquiao, treasurer of the United Maligang group, was quoted in the statement as saying that while the cooperative and the Chinese buyer still do not have final terms on the extent of its purchases, “it is an opportunity to expand our production area.”
“We were enticed to grab the trade opportunity because of the higher buying price compared to the price offered by the local market,” she added.
For the first shipment, the Chinese buyer bought about 400 kilograms (kg) of S2 fiber at P140/kg, higher than the P100/kg prevailing rate.
The other products purchased were Hank-type fiber and cake-type fiber.
Ms. Pacquiao said the cooperative, at present, can only supply about half of the eight-ton order, but she is confident that with the expansion of abaca production, it can eventually meet the requirement.
“If the construction of a warehouse and processing plant under PRDP project is completed, they will be able to produce more abaca products and definitely have more supply to sell,” PRDP said.
United Maligang is one of the cooperatives in six towns in Sarangani receiving PRDP assistance.
Abaca is among the commodities that Sarangani has identified under its Provincial Investment Commodity Plan and value-chain analysis, two requirements to qualify for PRDP assistance. — Carmelito Q. Francisco

Bright prospects expected for Puregold in 2019

FOREIGN INVESTORS snapped up shares in Puregold Price Club, Inc., as the grocery retailer is expected to benefit from slower inflation and higher consumer spending.
The Lucio L. Co-led company was the seventh most actively traded stock from Jan. 2-4, with a total of P1.021 billion worth of 22.625 million shares exchanged, based on data from the Philippine Stock Exchange (PSE).
Puregold share price jumped to P47.2 apiece on Friday, up P2.05 or 4.54% from the previous day. It was also 9.77% higher than last year’s closing price of P43.
Aniceto K. Pangan, trader at Diversified Securities, Inc., said via mobile message that the activity last week was driven “[m]ainly [by] the entry of foreign investors particularly on blue chips such as Puregold.”
Net foreign buying for Puregold was at P42.780 million on Friday, according to PSE’s daily quotation report.
Prospects for Puregold are expected to be brighter this year, as inflation showed signs of easing. The year-on-year increase in the prices of basic goods and services slowed to 5.1% in December 2018 from the previous month’s 6%.
The latest figure was the slowest in seven months since May’s 4.6%. The rate of change in prices hit a nine-year high of 6.7% in September before easing to 6% in November.
“Despite the risk of inflation in consumer spending, Puregold’s financial performance remained resilient as reflected on its double digit growth in net sales and net income recorded for the first three quarters of 2018,” Charlene Ericka P. Reyes, officer in charge of trading and research at First Resources Management and Securities Corp. (First Resources), said via e-mail.
“With consumer staples seen to be in demand in a high inflation environment, investors are starting to price-in the expected slowdown in inflation rate for the year as this will complement the lowered income taxes with higher consumer spending,” Ms. Reyes said.
Puregold posted a net income of P4.618 billion in the first nine months of 2018, 18% higher than the P3.899 billion in 2017’s comparable period. This was driven by a 14% rise in system-wide net sales to P99.818 billion versus P87.564 billion a year ago.
The company had attributed the strong performance to sustained same store sales growth (SSSG) during the nine-month period, which stood at 5.8% for its Puregold stores and 8.8% for S&R outlets.
“After the release of its financial performance in the first nine months with consolidated net sales up by 14%, they revised upward their guidance on consolidated net sales as well as, same stores sales growth by 100% indicating the unexpected performance of the company for the first [three quarters in 2018] with sustained momentum going to the [fourth quarter],” Mr. Pangan said.
Mr. Pangan expects Puregold’s continued expansion and acquisitions will drive growth this year.
For First Resources’ Ms. Reyes, “[w]e remain optimistic that Puregold will be able to hit its guidance for 2018, with a double digit growth of 12% to 14% in consolidated net sales, and 4% to 6% in same store sales growth.” — M.M.M.Ramos

London kicks off menswear fashion week

LONDON — From tailored suits to stylish leisure wear, designers unveiled their latest creations for male wardrobes this weekend at London Fashion Week Men’s, kicking off three days of runway shows and presentations on Saturday.
While a smaller event than its womenswear counterpart, the bi-annual men’s fashion week attracts its share of fashionistas to the British capital, all keen to view the latest trends designers hope to entice buyers with in a growing market.
UK menswear sales rose more than 5 % to £15.9 billion ($20 billion) last year from 2017, according to market research firm Mintel.
Among the brands showcasing their autumn/winter 2019 designs are Edward Crutchley, Cottweiler, Barbour, Raeburn and Qasimi. — Reuters

Farm road backlog estimated at 13,000 km

THE Philippines has a construction backlog of 13,000 kilometers (km) of farm-to-market roads (FMR) which needs to be addressed to bring down prices, according to Agriculture Secretary Emmanuel F. Piñol.
“The result is fewer products brought to the market and more expensive food items,” Mr. Piñol said in a Facebook post on the weekend.
“We have to build more farm to market roads now,” Mr. Piñol added.
According to the accomplishment report of the Department of Agriculture (DA) in 2018, the Philippine Rural Development Project (PRDP) conducted a Rapid Appraisal of Emerging Benefits (RAEB) for 21 completed FMRs from July 2016 to end of 2018, and results showed that the average income of farming households rose 15% over an average period of 10 months after completion of the FMRs as compared to the same period prior to the implementation.
The DA noted that livelihood opportunities increased along the road, area cultivated inside the road influence area (RIA) increased by 3.5%, transport losses reduced from 11% to 2%, hauling cost decreased by 3.3% (input) and 4.8% (output), and marketing of products improved.
“Last week, I listed the need for more rural roads leading to food production areas as the number one priority of the Department of Agriculture, “ Mr. Piñol said.
“By opening farm roads, government encourages farmers to produce more knowing that it is easier and less costly to bring their products to market,” Mr. Piñol added. — Reicelene Joy N. Ignacio

SEC issues advisory vs Angel Investor Group

THE COUNTRY’S corporate regulator has advised the public against investing in Angel Investor Group, Inc. (AIG), since the company has no license to do so.
In an advisory posted to its website, the Securities and Exchange Commission (SEC)’s Enforcement and Investor Protection Department said it has found Angel Investor Group to be soliciting investments with a promise of a 100% profit return after one month, in addition to “1,500 bonus share.”
“The public is hereby informed that Angel Investor Group, Inc. is registered with the Commission as a corporation in the year 2000 but is not authorized to offer, solicit, sell or distribute any investment or securities,” the SEC said.
Soliciting investments requires a secondary license from the commission, where the investment products and securities must also be registered before they are presented for sale to the public.
The commission warned people acting as salesmen, brokers, dealers or agents of AIG who convince people to investment in the firm, including those through the internet, that they may be prosecuted and held criminally liable under the Securities Regulation Code. This entails a fine of up to P5 million or up to 21 years in prison, or both.
People who merely invite or recruit other people to join may also be held liable or sanctioned accordingly.
“In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with Angel Investor Group, Inc. or its representatives,” the SEC said.
The SEC has constantly been sending out advisories against illegal entities inviting people to invest, remind the public that if an investment is too good to be true, it most probably is.
The commission has previously warned the public against investing in entities named Orro Platta Manna Corp., Bioglow Laundry Shop, Kapa Community Ministry International, Inc., and Bibli Online Store, among others. — Arra B. Francia

6 Questions with Longchamp’s Philippe Cassegrain


FRENCH FASHION luxury brand Longchamp celebrated its 70th anniversary in 2018. Philippe Cassegrain, son of the founder Jean Cassegrain, witnessed the beginning of Longchamp and has actively participated in developing the brand worldwide.
Unlike many luxury brands which have been swallowed up by conglomerates, the Cassegrain family has maintained Longchamp’s independent family origins. Today it has more than 300 boutiques across 80 countries.
Here Philippe Cassegrain talks about growing up in a family business, going international, and gilding leather cases.
1. Do you remember your father founding the company?
70 years may sound like a long time ago, yet it feels like yesterday. In 1948, my father, Jean Cassegrain, founded Longchamp. I was 11 at the time, and when I didn’t have school on Thursdays, I remember that I would help him by gilding leather cases. A few years later, I started doing some of the deliveries around Paris, before having the chance to travel across the world to meet our customers.
2. Did your father know from the beginning he was starting an international luxury brand?
Indeed he did, he had a vision from the start! He even commissioned Turenne Chevallereau to design the brand’s symbol — the Longchamp horse, with its fiery movement. He also created the “Smoke the Longchamp Pipe” advert used during those years, which we had displayed on our Citroën 2CV delivery car. All of Paris could see the symbol of our fiery stallion stretching out like a liana. It was so new!
3. Was the company international since the beginning?
Our showroom was located in the heart of Paris, where it received a great amount of exposure. It was situated at Boulevard Poissonnière, in the second arrondissement, and at the foot of the building was the civette. It was the place to be back then! It was a busy shopping area. My father welcomed customers from all over the world, curious to discover the latest novelties and up-and–coming fashion styles. At age 16, my father sent me on a trip around the world with travels across Africa before exploring Asia and the United States.
Upon my return, I officially joined Longchamp and assisted my father in running the business, from creation, manufacturing and marketing to sales development.
4. What does family business means for Longchamp?
Since the very early years all the members of the family contributed: my mother helped my father by hosting customers at the Paris Fair, she ran the boutique and looked after everything with him. And we (the children) would help make cigarette cases or passport cases. I had a small gilding machine that I would use to mark “Longchamp” in gold leaf. When I turned 15, I got a Vespa so I could deliver on the Boulevard Haussmann, home to many luxury hotels: the Commodore, the Ambassador, the Cabarets, the Crillon… I delivered the orders of smokers’ goods and orders to be displayed in storefronts. Tourists loved our collections! Jean-François and Dominique, my two brothers, joined in too: they did supplementary deliveries that I could not take charge of. We were four children and all of us grow up working for the family company. We were trained from an early age to run Longchamp. I was the eldest of my siblings, and since my brothers and sister had other professional plans, it was for me obvious to continue to run the business. I didn’t even consider any other career, Longchamp chose me and I chose Longchamp!
5. What ideas and insights were going through your mind when you first designed the Le Pliage in 1993?
During a trip to the US, I took with me a prototype for a collapsible travel bag. The result of my experimentation was the “Xtra bag,” which was made of a single piece of fabric. The fabric I selected was nylon, a strong yet light material that nobody had previously used for bags; it was light and resistant. In 1993, we reworked the idea to create Le Pliage. More playful and modern, Le Pliage shook up convention with its unique design and color palette introduced from the very first collection. Upon its arrival in stores, it was an instant success! Its trapezoidal structure, zip closure, two ears, two handles and flap teamed up with original new colors each season, and as always trimmed with “Russian Leather,” was a recipe for success. I think a brand needs to constantly reinvent itself and its products, that is why we change colors each season. All while keeping the same values!
6. Is the company that celebrated 70 years still the same company that your father founded in 1948?
We have grown tremendously since 1948. Today, my father’s vision of a global enterprise with high quality offerings and wide product ranges continues to guide and inspire us on this adventure. This has been accomplished with the continuous engagement and tenacity of all our teams, across the world. It has been a remarkable journey and I am proud that Longchamp is nowadays a luxury French family brand with the same core values. I’m happy to have raised my children within the firm and to have given them the desire to continue on this journey….
In 2018, we celebrated 70 years of Longchamp; 1948 marks the year Jean Cassegrain imparted his unique vision of French elegance and rewrote the rules of modern luxury under the Longchamp brand. A leather pipe maker channeling his craftsmanship into travel accessories, handbags and lifestyle fashion, the Longchamp brand now extends across the globe. His founding entrepreneurial spirit, penchant for excellence and romance with French art-de-vivre spur our adventure in innovative craftsmanship, creativity and unite us as we continue the Longchamp story.
In the Philippines, Longchamp is exclusively available at Rustan’s Makati, Rustan’s Shangri-La, Rustan’s Cebu, and Greenbelt 5.

Peso may strengthen vs dollar

THE PESO is expected to strengthen this week as the dollar declined against the other currencies due to weaker-than-expected economic data as well as declining government bond yields.
Last Friday, the peso ended the week at P52.51 versus the greenback, surging by 14 centavos from the P52.65-per-dollar finish last Thursday, following the release of the December inflation data, which came slower than expected.
Week-on-week, the peso strengthened a tad from its P52.58 finish last Dec. 28.
In a text message, Rizal Commercial Banking Corp. economist Michael L. Ricafort said the peso-dollar exchange rate could range between P52.30 and P52.60 this week as the greenback was weaker against other units.
“The US dollar was weaker versus major and emerging market currencies after [the release of the] weaker manufacturing data (biggest drop since 2008) to two-year lows,” Mr. Ricafort said on Friday.
The US Manufacturing Purchasing Managers’ Index was at 53.8 last month, down from the 55.3 recorded in November, amid a “weaker rise in new business and the joint-softest expansion in output since September 2017,” according to IHS Markit.
Mr. Ricafort added that the dollar was also lower compared with major global currencies after the benchmark 10-year US bond yield declined to 2.5%.
“This reduced the interest rate returns on US dollar-denominated bonds as well as the attractiveness of the US currency.”
For this week, he said the market will price in any developments in the US government shutdown as well as the upcoming talks between Washington and Beijing on their trade relations.
On the local front, investors will look at the latest gross international reserves data which will be released today, as well as the trade figures to be released on Jan. 10.
Meanwhile, a foreign exchange trader said the peso could trade stronger against the greenback should the dollar index continue to trade lower amid increased risk appetite among investors.
For this week, the trader expects the peso to trade between P52.45 and P52.65. — Karl Angelo N. Vidal

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