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Yields on gov’t debt flat on Fed cut

YIELDS ON government securities (GS) ended flat after the US Federal Reserve cut its rates for the third time this year, as widely expected.

Debt yields, which move opposite to prices, went down by an average of 0.3 basis point week-on-week, according to the PHP Bloomberg Valuation Service Reference Rates as of Oct. 31 published on the Philippine Dealing System’s Web site.

“The local GS market propelled its way to modest gains week-on-week after the US Federal Reserve cut its rates for the third time this year,” Robinsons Bank Corp. peso sovereign debt trader Kevin S. Palma said.

“The market also took cue from BTr’s (Bureau of the Treasury’s) 7-year bond reissuance with its average yield printing at the lower-end of expectations,” he added.

Another bond trader said yields on local bonds went almost flat due to mixed market signals last week.

“Initially yields were lower on expectations of another 25-basis point policy rate cut from the US Federal Reserve, some movement prior to the Nov. 1 cut in the local reserve requirement, and the surprise announcement of another reserve cut in December,” the bond trader said in an e-mail interview last Thursday.

For his part, Rizal Commercial Banking Corp. (RCBC) economist Michael L. Ricafort said that local benchmark interest rates were mostly slightly lower week-on-week due to “already priced in” Fed rate cut.

“Nonetheless, any corresponding cut on key short-term interest rates by other major central banks around the world, including on local policy rates, remains… despite recent signals from the BSP (Bangko Sentral ng Pilipinas) about no more local policy rate cut for the rest of 2019 (after three quarter-point cuts since the start of 2019),” Mr. Ricafort said in an e-mail.

At the end of its two-day meeting last Wednesday, the US central bank slashed for the third time this year its benchmark rates by another 25 bps to a target range of 1.5% to 1.75%.

Meanwhile, the BTr raised P20 billion last Tuesday via reissued seven-year papers with a remaining life of six years and three months. These bonds fetched an average yield of 4.322%, lower by 18.1 bps from the 4.503% quoted during the Sept. 10 auction.

At the end of the trading last Thursday, the rates of the 91-, 182-, and 364-day Treasury bills climbed by 3 bps, 4.4 bps, and 0.7 bp, respectively, to 3.172%, 3.308%, and 3.615%.

The belly of the curve dipped as yields on the two-, three-, four-, five-, and seven-year notes decreased by 0.9 bp, 2.7 bps, 3.8 bps, 4.4 bps, and 4.9 bps, respectively, to 3.881%, 3.999%, 4.126%, 4.259%, and 4.479%.

The long end of the curve ended mixed as the rate of the 10-year debt dropped by 3.6 bps to 4.669%, while yields on 20- and 25-year papers inched up by 4.3 bps and 5 bps to 5.082% and 5.087%, respectively.

Local financial markets were closed on Nov. 1 in observance of All Saints’ Day.

For this week, market watchers said they expect local yields to continue their downward trajectory amid low inflation expectation tempered by likely upbeat third quarter gross domestic product (GDP) print.

“Yields might continue to fall next week mainly due to subdued expectations on the October local inflation reports this week… However, optimism ahead of the Philippine third-quarter GDP report could temper the decline in yields,” the bond trader said.

For his part, Mr. Palma sees bond yields may continue to trend sideways with downward bias this week amid benign inflation as well as a rebound in the third quarter GDP data.

“[L]ocal bond yields could still continue to ease slightly [this week] due to the increase in peso liquidity into the banking system/financial system with the effectivity of the RRR cut and as the financial markets are anticipating for favorable economic data on local inflation for the month of October 2019 and on local GDP growth data for 3Q 2019…,” Mr. Ricafort said. — Mark T. Amoguis

Toyota champions compassionate mobility

Text and photos by Kap Maceda Aguila

AMERICAN WRITER and novelist Pearl Buck once wrote: “Our society must make it right and possible for old people not to fear the young or be deserted by them, for the test of a civilization is the way that it cares for its helpless members.”

It’s become highly apparent that this sentiment underpins what Toyota Motor Corporation (TMC) is doing for quite a while now. At the 2017 staging of the Tokyo Motor Show (TMS), the Japan-headquartered multinational automotive manufacturer declared it had ceased to be a “car company” and was calling itself a “human movement company” — a concept further emphasized by the firm’s President, Akio Toyoda, at last year’s Consumer Electronics Show in Las Vegas, Nevada.

The executive spoke of Toyota becoming a “global mobility company” as he unveiled the “e-Palette mobility-as-a-service concept and a new corporate focus on products and services designed to extend freedom of movement to all,” according to a recent release. The e-Palette is a fully autonomous, battery-electric vehicle which can be used for purposes like ride-sharing, logistics, and mobile shops.

This is not set to debut in the distant future, either. Just like the rest of Japan, Toyota is keen on taking advantage of next year’s staging of the Summer Olympics in Tokyo to flex its muscles. More importantly, it is flexing said muscles on behalf of the infirm or differently abled. This sentiment converges perfectly with an industry push towards the seeming inevitability of autonomous vehicles.

At the Big Sight, venue of the 46th TMS, there were no new market-ready production vehicles on display for Toyota. Rather, the booth was rendered as a “mobility theme park,” with the theme: “Play the Future.”

Earlier, Toyota had bannered its active involvement as a major sponsor of both the Olympic and Paralympic games — highlighted by the words “Start Your Impossible.” The company says this “marks Toyota’s commitment to supporting the creation of a more inclusive and sustainable society in which everyone can challenge their impossible. The fully integrated campaign also highlights Toyota’s mission to create a barrier-free society, and reinforces the company’s values of humility, hard work, overcoming challenges, and never giving up.”

Some 300 members of the media from 31 countries were shown how Toyota is helping a number of para athletes — including our own Paralympic swimmer Ernie Gawilan — in their quest for glory. In addition, Toyota is aiding these so-called “dual heroes” champion other causes. In Mr. Gawilan’s case, it’s about saving the environment through coastal cleanups. In Tokyo, he recalled to this writer how he learned to swim at age 11 or 12 in the waters off Samal Island.

“At Toyota, we embrace the potential of new technology to help us create products and services that enable people to overcome barriers and to reach their potential. The Olympic and Paralympic Games align with Toyota’s values and are platforms to showcase our global commitment to the concept of mobility for all,” said TMC Marketing Division General Manager Susumu Matsuda. A total of 16 athletes are taking part in Toyota’s “Mobility for All” campaign.

The company will deploy 20 e-Palettes at the 2020 Olympics to help transport athletes, along with Human Support Robot (HSR) and Delivery Support Robot (DSR) units. Wheelchair-riding attendees will be guided to accessible seating by the HSRs, which can also deliver light meals and goods to them. The DSRs “will directly deliver drinks and other goods to spectators that they have ordered from a dedicated tablet.” Some 500 seats at the Olympics and another 500 at the Paralympics reserved for spectators who needed mobility assistance will be served by these robots.

Mr. Toyoda underscored in his speech at the opening of the Toyota booth at TMS: “Our booth this time does not feature a single car to be launched next year. All that is found here are forms of mobility that link to society and communities and that provide modes of getting around and services to people.

“I believe that the more automation advances, the more the ability of people… will be put to the test. For example, people’s warmth and kindness… and also the hearts that feel such. What we want to express through our booth is the concept of people connected. (It) refers to a society in which people are linked — a society in which the warmth and kindness of people can be felt.”

Peso to climb on inflation, GDP

THE PESO may strengthen this week on the back of expectations of lower inflation and faster economic growth.

The local unit closed at P50.74 against the greenback on Thursday, stronger by 14 centavos from the P50.885-a-dollar close on Wednesday.

The peso gained 50 centavos week-on-week from its P51.24 finish on Oct. 24.

Dollars traded on Thursday grew to $1.16 billion from $1.049 billion on Wednesday.

A trader said the peso’s performance last week was driven by the rate cut made by the US Federal Reserve.

“The peso strengthened together with other Asian currencies after another rate cut by the Fed which deducted another 25 basis points to key interest rates,” the trader said in a phone call.

The US Federal Reserve on Wednesday cut interest rates for the third time this year to help sustain US growth despite a slowdown in other parts of the world, but signaled there would be no further reductions unless the economy takes a turn for the worse.

“We believe that monetary policy is in a good place,” Fed Chair Jerome Powell said in a news conference after the US central bank announced its decision to cut its key overnight lending rate by a quarter of a percentage point to a target range of between 1.50% and 1.75%.

For this week, a combination of local and US data could affect the peso’s swing.

“The markets will be anticipating the latest inflation data and the gross domestic product (GDP) growth as well as the effectivity of the one-percentage point cut in the banks’ RRR (reserve requirement ratio)…that could support sentiment on the local economy and financial markets,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Meanwhile, the trader said the US job growth slowdown could also affect peso-dollar trading.

“We have seen the US job data release and next week will have a barrage of data including the inflation and the GDP,” the trader said.

US job growth slowed less than expected in October as the drag from a strike at General Motors was offset by gains elsewhere and hiring in the prior two months was stronger than previously estimated, offering some assurance that consumers would continue to support the slowing economy.

US non-farm payrolls increased by 128,000 jobs last month, with manufacturing shedding 36,000 positions because of the strike — the most since October 2009, the government’s survey of establishments showed. Striking workers who do not receive a paycheck during the payrolls survey period are treated as unemployed. The strike by about 46,000 workers at GM plants in Michigan and Kentucky ended last Friday.

Meanwhile, the Philippine Statistics Authority will report the inflation and GDP data on Nov. 5 and Nov. 7, respectively.

Mr. Ricafort sees the peso trading at P50.50-51.00 this week, while the trader sees it playing around the P50.80-51.30 band. — L.W.T. Noble with Reuters

Suzuki showcases transformative concept cars at Tokyo Motor Show

By Ulysses Ang

SUZUKI has been making strides in creating truly valuable automobiles and motorcycles that delight customers. As the Japanese car maker celebrates its 100th anniversary, they’ve used the 46th Tokyo Motor Show 2019 to show their initiatives in the development of products and technologies for opening up a “big future” towards the next 100 years.

One such example is the Waku Spo Concept, a car that carries two distinct personalities. Powered by a plug-in hybrid electric (PHEV) powertrain, it switches from a coupe to a wagon at the whim of the driver. The secret is the concept car’s retractable rear section which folds down at the press of a button. When transformed into a wagon, the rear seats slide back and automatically recline giving a much roomier, comfortable cabin. Moreover, it has sliding rear doors that makes entry into the second row easier despite its two-door body style.

Along with the transforming body style, the Waku Spo Concept’s front fascia changes as well as the dashboard. In standard wagon mode, it has a simple virtual wood grain finish that displays only necessary information. In contrast, switching to the coupe Sport mode brings out a full-length monitor that displays a wider variety of information.

Another mobility concept is the Hanare, Suzuki’s take on future autonomous vehicles. Named after the Japanese word for detached cottage, the Hanare is basically a room on wheels. Swinging open the large side doors show off a wide variety of seating arrangements, all designed for enjoyment of the passengers. Furthermore, thanks to in-wheel motors and a completely symmetrical design, it eschews the concept of ‘front’ and ‘back.’ This helps it navigate through parking lots and other tight spaces easily.

Through this pair of concepts, Suzuki is not only showing the possibilities of future mobility, but also shows how everyone can move about more freely while still expressing his or her personality whether it’s with a car that transforms to suit one’s intended use, or one that changes from a private space to one that can accommodate family or friends.

Expectations of better third-quarter earnings drive Ayala Land’s stock movement

By Marissa Mae M. Ramos
Researcher

AYALA LAND, Inc. (ALI) was the seventh most actively traded stock last week, ahead of the release of the company’s earnings report this week.

A total of P1.059 billion worth of 21.663 million shares were exchanged on the trading floor from a shortened trading week from Oct. 28 to 31, data from the Philippine Stock Exchange (PSE) showed.

ALI shares closed at P48.55 apiece on Thursday, up by 0.10% from the P48.5 on Oct. 25, but down 2.02% from the previous day’s P49.55 closing price. Year to date, it is up 17.55%.

“The recent movement of ALI shares is primarily due to the anticipation of [nine-month] and [third-quarter] earnings,” said Philstocks Financial, Inc. Client Engagement Officer and Research Associate Piper Chaucer E. Tan in an e-mail.

“We think that ALI will still bring strong earnings primarily from its retail, residential and office leasing business. The bulk of the revenue drivers will be coming from its residential business due to its rapid expansion of townships across Philippines…,“ he added.

For Diversified Securities, Inc. Equity Trader Aniceto K. Pangan, ALI’s share price movement last week was influenced by improving market sentiment due to the US-China trade talks “moving in a positive direction” as well as the “expectation of a better second-half for the [Philippine] economy.”

“Ayala Land sustained its growth momentum in the first half of this year despite a lower local economic growth of less than six percent. This is indicative of a strong fundamental,” said Mr. Pangan.

“ALI will continue to project a strong growth as our country maintains its strong growth momentum.”

The company booked an attributable net income of P7.834 billion in the second quarter, up 11.58% from its P7.021-billion earnings in the same period last year. This brought its bottom line in the first half to P15.157 billion, up 12% from last year’s P13.538 billion.

Philstocks’ Mr. Tan expects ALI’s net income to reach P33.8 billion for 2019: “The long term outlook for ALI is [a] rapid expansion outside Metro Manila adding to the government’s easing monetary policy which will ease credit, thus increasing demand for real estate properties,” he said.

However, he cautioned of the delay in the government’s infrastructure projects that might pose a risk to ALI’s growth prospects as well as that of the entire industry.

The Philippine economy’s 5.5% gross domestic product (GDP) growth in the first half of the year was slower than the 6.3% expansion recorded in 2018’s comparable six months, with analysts blaming the disappointing result to the 2019 budget’s nearly four-month delay which had left new projects unfunded. Up until April 15 when the 2019 budget was signed, the government had operated on a reenacted 2018 budget.

Third-quarter GDP growth is set to be released on Thursday, with the market expecting the economy to recover from the disappointing first-half performance.

Meanwhile, Reuters reported last Thursday of Chinese officials expressing optimism that Beijing and Washington could still sign a trade deal next month despite the abrupt cancellation of the Asia-Pacific Economic Cooperation (APEC) Summit in Chile last Wednesday due to ongoing protests in the South American nation. The said meeting would have potentially led to both economic superpowers signing a much needed trade deal to de-escalate the 15-month-old trade war.

Moving forward, Diversified Securities’ Mr. Pangan said that ALI is expected to continue consolidating with a major resistance level of P50 and a support of P45 “due mainly to challenging external and internal factors such as US-China trade war, Brexit, geopolitical tension, [and] the catch-up [on] government spending…”

For Philstocks’ Mr. Tan: “We see the stock reaching the primary resistance as earnings of ALI may be released [this] week…”

Mr. Tan pegged ALI’s primary and secondary support at P48.5 and P47, respectively, with primary resistance at P50 and secondary resistance at P52.7.

Palay farmgate price falls in mid-October

THE average farmgate price of palay, or unmilled rice, declined in the second week of October by 0.2% week-on-week to P15.53 per kilogram (kg), the Philippine Statistics Authority (PSA) said.

According to PSA’s weekly price update, the average wholesale price of well-milled rice fell 0.5% week-on-week to P37.85 per kg. Retail prices fell 0.1% to P41.89.

The average wholesale price of regular-milled rice fell 0.5% to P33.70 per kg, week-on-week. Retail prices declined 0.8% to P37.22.

The price of the staple grain has been falling in recent months after the implementation of the Rice Tariffication Law, which made the entry of imported rice easier.

Week-on-week, farmgate price of yellow corn grain declined 1.1% to P12.20 per kg. The average wholesale price rose 15.8% to P21.17. The retail price increased 6.0% to P25.71.

The average farmgate price of white corn grain fell 0.3%, week-on-week, to P13.47 per kg. The average wholesale price was stable at P16.80, as was the average retail price of P26.53. — Vincent Mariel P. Galang

Shares to climb on positive inflation, GDP data

By Denise A. Valdez
Reporter

SHARES may rise this week on the release of likely positive October inflation and third-quarter gross domestic product (GDP) data, along with the continuation of corporate earnings filings.

After three straight days of gains, the Philippine Stock Exchange index (PSEi) ended last Thursday’s trading session down 42.94 points or 0.53% to close at 7,977.12. The local bourse was closed on Friday in observance of All Saints’ Day.

On a weekly basis, however, the main index was still able to record a 0.69% growth during the four-day trading week versus the prior week.

Last week also saw the PSEi reach the 8,000 level for the first time since Aug. 2 when it closed at 8,020.06 on Wednesday. However, its immediate surrender the next day showed the market is “not yet prepared for 8,000,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said last week.

“We still need compelling factors that can lift our market above the crucial resistance line. And these factors may come next week,” Mr. Tantiangco said in a text message Thursday, referring to the October inflation report, third-quarter GDP data and corporate earnings.

The Philippine Statistics Authority is scheduled to release inflation data on Tuesday and GDP data on Thursday. Listed firms will also continue filing their earnings reports until the Nov. 15 deadline.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun named the same factors as among what he expects will influence the local bourse this week. In a market, he said inflation likely remained on a downtrend, while no surprises are expected in the third-quarter GDP data .

“However, the recent pick up in infrastructure spending and consumer spending may have a better than expected effect on growth. This may also give investors an extra boost of confidence to get back into this market,” he said.

Philstocks Financial’s Mr. Tantiangco said if the local data due for release this week will be favorable, there is a chance for the main index to return to the 8,000 level.

“A slower October inflation print and good corporate figures could also give us a boost,” he said.

However, AAA Southeast Equities’ Mr. Mangun warned that the PSEi going above the 8,000 mark could result in sellers overwhelming buyers.

“We need to see a pickup in trading volumes in the coming weeks for this market to rally higher. The current buying pressure is not going to be enough for this market to go higher,” he said.

Turnover value last week stood at P26.26 billion, with foreign inflows logging net purchases worth P1.75 billion.

“Foreign inflows have been an unexpected positive which will help the general sentiment improve if it continues… More foreign inflows may find its way into local equities before the end of the year which may be a pleasant revelation for everyone,” Mr. Mangun said.

I like these

By Zsarlene B. Chua
Reporter

IN the past few months, I have practically overhauled my skincare routine save for a few staples because there have been a lot of good releases this year. So unlike my other reviews that usually contain products I liked and products I don’t like, this one is focused on the new products I have incorporated in my skincare routine.

Do note that I now do take longer when it comes to reviewing skincare products more than color cosmetics because, in my experience, two weeks is not enough to see tangible results and decide whether I like the product or not. Several times I liked a product for a few weeks but then it didn’t work for me in the long run. So the products here are those that I have been using for at least a month, some even as long as three months.

Another thing that’s important to note: I am 25 years old and my skin is currently cycling between normal and dry, and while I do have hormonal flare-ups before my period, I have generally unproblematic skin though I do am sensitive to pollutants and dust and usually have to combat dry patches. So what might have worked for me might not work for you depending on your skin type and skin concerns, so please use discretion and if you are able to, try to buy or get sample sizes first to try out before buying a full size.

AHC’S THE REAL PURE EYE CREAM FOR FACE (P920 FOR 30 ML)
AHC is a Korean brand that started in high-end aesthetic clinics in 1999. It became so popular that in 2017 it was acquired by Unilever. The brand is known for its The Real Pure Eye Cream for Face, an eye cream that is said to contain over 90% natural ingredients and is so effective it can be used on one’s entire face as a daily cream.

It entered the Philippines in September, and is currently available in Watsons stores and in various online stores.

I was given the Real Pure Eye Cream for Face (such a mouthful) during the launch that month. Now, the thing about eye cream is that it can be an optional step in one’s routine (it is said to be gentle enough for the thin, sensitive skin around the eyes) and there’s not really a hard and fast rule on how to apply it — some suggest applying it only on the undereye area and some prefer doing the entire eye socket. I prefer doing the latter and even extend until the brow bone just to ensure full coverage — but to each their own.

I’ve been using the cream for more than a month now and I found it frustrating that the packaging is in Korean and thus I did not know what really makes the thing work — so I sleuthed around for the ingredients list and found it. It is said to contain glycerin (a humectant which limits moisture loss in the skin), algae extract (for skin elasticity and hydration), coconut water and oil, centella Asiatica (a plant that has antioxidant properties and soothes irritated and compromised skin), and Hyaluronic Acid (another humectant), among a host of other seed oils and fragrances.

It has a spreadable but not-so-thin-it’s-watery texture that allows one to glide the product around the eyes. It does have a fragrance so people who are sensitive, please take note, though the smell is mild and herbaceous.

It is also very hydrating and softened fine lines and dry patches that have started appearing around my eyes. Did it help with the mild discoloration of my undereye area? Not really, it did not lighten my eyebags but the area is hydrated now so it looks softer.

I use it day and night, though I use less in the day time because if there’s a gripe I have about it, it takes time to set. I understand there’s a The Real Eye Cream for Face (without the “Pure”) variant that’s supposedly lighter in texture, so people who don’t want a heavy consistency might want to consider that.

This is not a budget brand so I only use it around my eyes because I want it to last longer and, by my reckoning, it will take me a solid year to get through an entire tube.

Will I purchase this if I run out? Probably because I really do enjoy it.

GOODAL CAMELLIA MOISTURE BARRIER LINE (CREAM, TONER, AND AMPOULE);
GOODAL CAMELLIA MOISTURE BARRIER TONER (P1,000/200 ML);
GOODAL CAMELLIA MOISTURE BARRIER CREAM (P1,400/50 ML);
GOODAL CAMELLIA MOISTURE BARRIER AMPOULE (P1,450/12 ML)

I got these products in July when Luxasia, the brand’s distributor in the Philippines, brought samples during a roundtable interview. It wasn’t available in the Philippines until a few months later, but now it’s available in the Club Clio stores and in Lazada and Zalora.

Goodal is a Korean skincare brand by Club Clio and is known for its Green Tangerine line and is said to merge Korean traditions of fermentation alongside natural products making it “good for all,” hence the name.

I love these products and I’ve been using them for three months now. I mentioned before that while I have unproblematic skin, it can get really dry and irritated due to pollution and the line really helps my skin combat irritation and dryness because of ceramides.

Again, it rankles that the packaging is only in Korean but I did some research and it has ceramides that help for the skin’s moisture barrier do its thing: it’s the outermost layer of one’s skin and protects from too much moisture loss and environmental aggressors. Ceramides also soothe irritated skin.

The cream, which I use only at night, is a bit thick and is suitable for drier skin types. For oilier skin types, there’s a water gel version so you may want to go for that.

It has a faint smell of flowers and herbs — it’s not nauseating but it’s there. It smells stronger than the AHC eye cream. I am not a fan of the smell but I am all for the product.

In the morning, I use the toner and the ampoule. The ampoule is thicker than serum and is said to have a higher concentration of active ingredients. It usually comes in smaller 20 to 30 ml bottles so a 120 ml ampoule for P1,450 is a steal but still an investment.

The toner has a thin watery consistency unlike my other ceramide toner from The Face Shop — the Ceramide Moisturizing Toner (P390/150 ml) — which has almost a gel-like consistency. The thinner consistency makes it perfect for daytime use because it sinks in faster.

The ampoule has a thick consistency and a small amount is enough to cover the face. I suggest that you let the product sink in for less than a minute before applying your creams because, in my experience, creams work better when the skin is damp (not wet) not bone-dry.

In two months of consistent usage, I noticed that I have fewer flare-ups and faster recovery time. My skin is also plumper and more hydrated than before.

I would probably buy the ampoule again because my skin really loves it, and I would also consider the cream if I don’t find something better at a lower price. The toner, while I did like it, I might have to pass on it once it runs out because I have a cheaper alternative in my Face Shop toner.

NEUTROGENA DEEP CLEAN BRIGHTENING FOAMING CLEANSER (P239 FOR 100 G) AND SENKA PERFECT WHIP FOAM (P440 FOR 120 G)
Here are two facial washes that I would recommend because they check all my requirements: foamy enough despite using only a really small amount; adequately removes residual makeup and dirt as my second-cleanse; and do not dry me out in the short time between leaving the bathroom and commencing my skincare routine in the bedroom.

Note that at night I double-cleanse, first using Calmia Oatmeal Therapy Cleansing Oil (P570 for 200 ml) that I bought online from Althea Korea, followed by a foaming face wash.

(In the morning I do a gentle cleanse with Avene Extremely Gentle Cleanser at P1,280 for 200 ml. I got it several months ago in an Avene event.)

The two facial washes were given to me during press events and they are available in leading drugstores and online.

The Neutrogena cleanser is glycerin-based with mulberry extract for brightening. I liked it because it’s affordable and my skin tolerates this variant so much better than the classic version which dries out my skin despite being supposedly hydrating. Did it brighten my skin? Not a lot but I did see some changes — my hyperpigmentation on my left cheek lightened and it balanced my skin tone despite not using any other brightening products.

Those struggling with oiliness and acne, Neutrogena also has an Acne Control variant.

Meanwhile, the Senka Perfect Whip Foam is something I use when I want a deeper clean — which is a bit ironic because Neutrogena is supposedly meant for a deep clean, but I feel that this product lifts away more dirt and is perfect for days when I’m out all day and use heavier-than-usual makeup.

Senka is a Japanese diffusion line from Shiseido and the crowd-favorite Perfect Whip Foam also contains glycerin and lauric acid for a deeper clean. A small, pea-sized dollop is enough to foam the whole face. Word of caution though, it does not hydrate the skin and it does dry the skin but not enough to bother me.

House to tackle budget issues after returning from break

A MEASURE extending the validity of the 2019 budget until next year and the proposed P4.1 trillion spending plan for 2020 are expected to be tackled in the 18th Congress when it resumes session on Monday after a month-long break.

Majority Leader Ferdinand Martin G. Romualdez of Leyte’s 1st district said Sunday that the House of Representatives is due to approve on final reading the resolution which will extend the availability of P3.662-trillion budget for 2019 until Dec. 31, 2020.

“We aim to hit the ground running on the first day of work. Time to roll up our sleeves once again,” Mr. Romualdez said in a statement Sunday.

The House is also scheduled to approve the bill postponing the May 2020 Barangay and Sangguniang Kabataan elections. House Bill No. 4933 provides that the May 2020 election be moved to May 2023, a year after the 2022 national election.

This is intended to allow more time for incumbent Barangay and SK officials, who assumed office in May 2018, to implement their respective programs and projects. Its counterpart measure in the Senate, Senate Bill No. 1043, won final reading prior to the Oct. 4 adjournment. Its version, however, provided to delay the elections to Dec. 5, 2022.

Mr. Romualdez said the chamber is also set to continue deliberation of other economic measures during the resumption, particularly the remaining packages of the comprehensive tax reform program.

“Other economic bills that needed swift action from the House include measures dealing with the Real Property Valuation and Assessment system, amendments to the Public Service Act, (and) a measure raising the Motor Vehicle Road Users’ Tax.”

He said in accordance to earlier pronouncements of Speaker Alan Peter S. Cayetano, the House will aim for passage of the bills creating three new departments by year’s end. These are the Department of Overseas Filipino Workers, the Department of Water, and the Department of Disaster Resilience, all of which were mentioned in President Rodrigo R. Duterte’s fourth State of the Nation Address.

The Senate, for its part, will begin plenary sessions on the 2020 spending plan next week, in time for its targeted passage by year’s end.

Senate Finance Committee Chairman Juan Edgardo M. Angara said in a text message to BusinessWorld that he plans to sponsor the budget “not this week, the following.”

A subcommittee, led by Senator Sherwin T. Gatchalian, on Monday is set to deliberate the budget of the Philippine National Oil Co.; while a subcommittee headed by Senator Panfilo M. Lacson, has submitted its report.

“Ang aking subcommittee, nakapag-submit na kami ng aming report sa main committee (my subcommittee has filed its report to the main committee), within one week on break,” Mr. Lacson said in a radio interview with DzBB Sunday.

Senate Majority Leader Juan Miguel F. Zubiri has said that aside from the budget, the chamber is also expected to deliberate on the following measures during the resumption: Increasing Excise Taxes on Alcohol Products, Heated Tobacco and Vapor Products and Creation of Malasakit Centers in all Department of Health Hospitals, Creation of a National Transportation Safety Board, and Amendments to the Anti-Terrorism Act. — Charmaine A. Tadalan

Shipping price regulation order still subject to consultation

THE government’s bid to regulate the rates charged by shipping lines may have to wait longer as the Department of Finance (DoF) makes its final revisions for the proposed joint administrative order (JAO).

Asked about the status of the JAO draft, Finance Assistant Secretary Antonio Joselito G . Lambino II said last week that the department cannot give a timeline yet as meetings with stakeholders are still ongoing.

“Meetings are still ongoing,” Mr. Lambino said in a mobile phone message, adding that “[there is] no information yet on the timeline.”

Finance Undersecretary Antonette C. Tionko said that the Bureau of Customs (BoC) is still “coordinating with the Philippine Ports Authority, the Maritime Industry Authority as well as the Department of Trade and Industry (DTI),” which heads the initiative.

In a meeting with the presidential anti-corruption commission (PACC), Customs Assistant Commissioner of the Post Clearance Audit Group Vincent Philip C. Maronilla said that among the issues raised were the lack of regulation on costs imposed by shipping lines even if it concerns public interest because of its inflationary effect as well as the issues on profiteering and other fraudulent activities.

“The PACC has also, although these are private entities, raised the issue on why it remains unregulated when the costs of shipping lines are right now impressed with public interest because inflationary rin naman yung effect nya (the effects of high prices are inflationary) and at the same time there are profiteering issues,” Mr. Maronilla said in an interview on Thursday.

While it understands that the issue of imposing fees involves private entities, PACC is still “looking very keenly” into the matter as it concerns public interest, he said.

Once the government regulation is allowed through the JAO, the state can determine the costs being charged if they are “fair and reasonable” as “any charges that are unwarranted will have to go through some sort of a process,” he said.

He also said that the regulation will help the Bureau on port congestion issues as well as help bring down the high shipping fees.

“Minamadali din namin yun (We are expediting it) because that’s very important for port congestion issues,” he said.

Mr. Maronilla said the Department of Transportation (DoTr) and the BoC have both expressed interest in the regulation.

He said the DoTr is more suited for the part as it has “more jurisdiction and technical expertise” on the matter.

“If nobody else wants to, we’re very much willing to take the cudgels of regulating these, but again, I think regulation of shipping lines is a broader issue than customs clearance,” he said.

“But of course we would prefer, being a mode of transportation, if DoTr, who I think has more jurisdiction and technical expertise relative to these matters, can assume jurisdiction over the regulation of this shipping line business.”

The proposed JAO was initiated by the DTI, the DoTr and the DoF to regulate the charges imposed by international shipping lines as well as introduce port reforms that could lessen port congestion.

“There are just concerns, there’s a few tweaks that DoF wants to do [and needs] some time to be able to resolve this issue,” Mr. Maronilla said.

Currently, he said the Association of International Shipping lines is determining the rates since it is a “private contract between consignee or the one exporting, whoever shoulders the cost, and the shipping lines.”

“You cannot stop the imposition of charges by private entities in a private transaction because those are protected by the Constitution… that there should be no impairment of contracts, but of course, there are exemptions to it,” he said.

If there are public interest issues involved “and if it’s not fair and reasonable and would border on some sort of fraudulent and profiteering activity, then the state could come in to help out its citizens and regulate these activities.” — Beatrice M. Laforga

Bill creating cash transfer scheme for rice farmers filed in Senate

A BILL establishing a conditional cash transfer program for Filipino farmers has been filed in the Senate.

Senate President Pro Tempore Ralph G. Recto, in Senate Bill No. 1074, proposed to create the Pantawid Magsasakang Pilipino Program as a national strategy to address rural poverty.

“These interventions are sought in cognizance of the short-term obligation to mitigate the abrupt reduction of farmer incomes caused by the rescission of quantitative rice import restrictions,” Mr. Recto said in the explanatory note.

The program will cover farmers or rice farming households classified as poor or near-poor by the Philippine Statistics Authority.

Conditions for remaining beneficiaries include continued palay production, and the use of inbred palay seeds to be developed, bred, registered, certified and distributed by the Philippine Rice Research Institute, among others.

The funding will come from revenue in excess of the P10 billion generated for the Rice Competitiveness Enhancement Fund (RCEF), which is authorized to receive funding from import tariffs under the Rice Tariffication law or Republic Act 11203. RCEF is entitled to P10 billion a year for six years from tariffs.

Agriculture Secretary William D. Dar announced on Oct. 18 that the government is setting aside P3 billion from rice import tariffs. The Department plans to provide P5,000 worth of cash assistance to 600,000 farmers.

In a separate development, Finance Secretary Carlos G. Dominguez III said on Oct. 23 that the cash assistance program will prioritize farmers “most affected” by the Rice Tariffication Law.

The cash transfer bill requires all qualified beneficiaries to be covered by the Rice Insurance Program of the Philippine Crop Insurance Corp., subsidized by the national government. — Charmaine A. Tadalan

GOCC Sept. subsidies rise 179% to P54.7 billion

GOVERNMENT subsidies to state firms rose 179% in September, with more than half going to the Philippine Health Insurance Corp. (Philhealth).

According to the Bureau of the Treasury, the total subsidies remitted by the national government to government-owned and -controlled corporations (GOCC) hit P54.7 billion that month, from P19.58 billion a year earlier.

In the nine months to September, total subsidies amounted to P151.5 billion.

Philhealth received 54.7% of the September total with P29.76 billion, up 461% from a year earlier.

This was followed by the subsidies granted to the Land Bank of the Philippines at P12 billion, up 142.42% and the P7.54 billion extended to the National Irrigation Administration, up 56.11% year-on-year.

Other GOCCs that received subsidies during the month were Small Business Corp. at P1.25 billion, Philippine Coconut Authority P726 million, National Food Authority P668 million and Philippine Crop Insurance Corp. P581 million.

The government extends subsidies to state corporations to cover their operational expenses that are not supported by the revenue they generate.

Meanwhile, state firms that did not receive budgetary assistance from the national government during the month were Philippine Fisheries Development Authority, Tourism Infrastructure and Enterprise Zone Authority, Philippine Center for Economic Development, Philippine National Railway, National Housing Authority, National Electrification Administration, Development Academy of the Philippines, and National Home Mortgage Finance Corp.

The government allotted P187.1 billion this year for subsidies to GOCCs. — Beatrice M. Laforga

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