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Suzuki maintains growth in Q3, introduces new Vitara

CONSISTENT with its strong performance for the first two quarters of the year, pioneer compact car distributor Suzuki Philippines (SPH) finished the third quarter with positive growth yet again, enabling the company to post 19% sales growth for the first nine months of the year over the same period in 2018.

The continued sales increase is the result of the brand’s strategic marketing efforts, which emphasize numerous promotions and interactive events and are aimed at boosting product visibility. SPH hopes to ride on this strong market and brand momentum to further strengthen its position in the market through the remaining months of 2019.

“Suzuki’s current standing in the Philippine automotive industry is a significant milestone for the brand. After securing the 4th spot in the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) ranking — the highest rank in the brand’s history — and climbing to the 5th spot in the local automotive industry roster last quarter, we at Suzuki Philippines can definitely say that 2019 has been a monumental year for the brand,” shared SPH Director and General Manager for Automobile Division Keiichi Suzuki.

“These back-to-back achievements further fuel our drive to deliver on the brand’s promise of quality driving experience with every Suzuki vehicle,” he added.

TOP SALES DRIVERS: ERTIGA, SWIFT, CELERIO
The Ertiga, Swift and Celerio continue to excite and stimulate the market as Suzuki’s best-selling vehicles. The three award-winning models combined accounted for 56% of total sales from January to September this year.

The well-loved family vehicle Ertiga still dominates the Suzuki auto sales chart with a 34% share. This 7-seater vehicle fortified its position as the top-favorite Suzuki vehicle with the release of the Ertiga Black interior version, which drove sales up even further.

Aside from its fuel efficiency and spacious interior that complement the body’s elegance and modern style, the Ertiga demonstrates good engine performance that is powerful and cost-efficient, making it an ideal vehicle for practical Filipino families.

The Swift kept its position as the second top-selling Suzuki model with an 11.4% share of total sales. This hatchback remains the millennials’ top choice among Suzuki vehicles. With its sleek and stylish design that is very recognizable on the road, millennials can definitely identify with this fun and compact Suzuki hatchback.

Accounting for 11% share of sales, the Celerio ranks third among Suzuki’s top-selling vehicles. This hatchback, known for its space and roomy dimension, can accommodate up to 254-liters worth of cargo with an uncompromised 5-seater capacity, alongside its remarkable fuel efficiency that ups the ante for its category.

DEBUTS NEW VITARA
Another vehicle from Suzuki Philippines that stunned the market this year and won the 2019-2020 Auto Focus Media’s Choice Awards’ Compact SUV of the Year: Best Value for Money award is the Suzuki Vitara. Committed to continue its legacy and stand firm to its promise to provide value-packed and affordable products to more Filipinos, Suzuki proudly debuts the improved and upgraded New Vitara. This CBU Unit from Magyar Suzuki Corporation (MSC Hungary) is available in GL+ 6-speed automatic and GLX 6-speed automatic variants.

Suzuki has made several improvements and upgrades in both the exterior and interior of the new Vitara. It is now equipped with a new grille, bumpers and rear combination lamps, all of which create an expressive exterior. The new stylish suede front and rear seats, cluster meter and premium-feel cabin create a comfortable yet stylish interior vibe.

“The new Vitara will surely appeal to car enthusiasts looking for an improved version of the classic Suzuki vehicle. It is our pleasure to bring another modified Suzuki vehicle to the Philippines. The New Vitara will certainly deliver an exceptional driving experience to Filipinos — the Suzuki way,” shared Keiichi Suzuki.

For more information about Suzuki Philippines and its automobiles, please visit www.suzuki.com.ph and like them on www.facebook.com/SuzukiAutoPH.

Peso to strengthen as BSP halts easing cycle

THE PESO is seen to climb this week on the back of local economic data coming up and signals of a pause in monetary easing from the central bank.

The local unit closed at P50.49 against the greenback on Friday, depreciating by less than a centavo from the P50.481-a-dollar finish on Thursday, according to data from the Bankers’ Association of the Philippines.

Week on week, it appreciated by 25 centavos from its close of P50.74 on Oct. 31.

Dollars traded on Friday slipped to $789.65 million from $1.15 billion seen on Thursday.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort attributed the peso’s weakness to factors such as US-China trade developments and US data.

“The peso was slightly weaker…due to positive developments in the US-China trade talks particularly the optimism on the possible phase one trade deal in the coming weeks… Stronger US economic data on initial jobless claims also supported the slight upward correction in the US dollar,” Mr. Ricafort said in a text message.

Meanwhile, UnionBank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion said the peso’s sideway movements could be due to the lack of leads.

“The peso was steady on Friday after the higher-than-expected Q3 GDP (gross domestic product) on Thursday and this is due to lack of drivers [on Friday],” he said in a text message.

The United States and China have agreed to roll back tariffs on each others’ goods in a “phase one” trade deal if it is completed, officials from both sides said on Thursday, sparking division among some advisers to US President Donald Trump.

The Chinese Commerce Ministry, without laying out a timetable, said the two countries had agreed to cancel the tariffs in phases.

Meanwhile, data from the Philippine Statistics Authority (PSA) showed the Philippine economy grew 6.2% in the third quarter, with the government catching up on spending after delays in the passage of the national budget took its toll on expansion in the first half.

For this week, economists believe the peso’s performance will gain traction from the market taking cues that there will be no more monetary easing in the upcoming Bangko Sentral ng Pilipinas (BSP) policy review and the slew of data to be reported this week, including foreign direct investments (FDI).

“The upcoming BSP monetary policy meeting would be the major lead… No cut on policy rates would support sentiment on the peso, in view of the [recent] Fed rate cut as this would increase the peso’s interest rate premium over comparable US interest rate benchmarks, thereby making the peso more attractive with relatively higher interest rate returns without a local policy rate cut,” RCBC’s Mr. Ricafort said.

UnionBank’s Mr. Asuncion also sees the upcoming Monetary Board meeting to affect the peso’s performance as well as the upcoming FDI data.

“The local currency’s strength next week is expected to be driven by FDI data release and the BSP’s interest rate decision,” he said.

BSP Governor Benjamin E. Diokno told ANC and Bloomberg earlier this month that the central bank is done cutting rates for this year. The Monetary Board’s policy meeting is set on Thursday, Nov. 14.

Mr. Diokno also said the current monetary policy “remains appropriate” as the “economy is back on track to a strong growth path” following the release of data showing gross domestic product growth of 6.2% in the third quarter.

So far, the central bank has already slashed benchmark interest rates by 75 basis points this year, partially dialling back the 175-bps rate hike barrage in 2018 amid an elevated inflation environment.

Meanwhile, the central bank is set to report the FDI in August today. Data on remittances and hot money will also be released by Friday.

For this week, RCBC’s Mr. Ricafort expects that the peso will trade at a range of P50.25-50.65, while UnionBank’s Mr. Asuncion believes the local unit will play around the P50.30-50.60 band. — Luz Wendy T. Noble with Reuters

Global rice output seen flat in November — USDA

GLOBAL rice production in November is expected to remain flat as a large harvest from India is expected to offset lower volumes from Indonesia and the Philippines, the US Department of Agriculture (USDA) said.

“Global rice production is nearly unchanged this month, as a larger Indian crop is fully offset by smaller harvests for Indonesia and the Philippines,” USDA said in its Grain: World Markets and Trade report for November.

During the month, the USDA estimated rice imports by the Philippines at 2.5 million metric tons (MT), down 7% month-on-month. The decline in imports is also associated with a preliminary investigation into possible safeguard duties by the Philippine Department of Agriculture (DA), which was later cancelled.

Output of milled rice in the Philippines is expected to decrease 1.6% month-on-month to 12 million MT. Consumption and residual totals of purchased rice in the country is also projected to decrease 2% month-on-mont to 14.2 million MT.

Philippine rice inventory at the end of the month is expected to remain steady at 3.790 million MT.

In a separate report on World Agricultural Production, USDA noted that the Philippines’ November production is projected to rise 2.28% year-on-year.

Yields is also projected to increase 4.05 MT per hectare, or 1.5% month-on-month. Over the same period, area harvested is projected to decrease 3% to 4.7 million hectares.

The USDA said the Philippines remains is one of the leading markets for Chinese corn starch.

“Major destinations for China’s exports have been neighboring countries. For corn starch, Indonesia, Malaysia, the Philippines, and Vietnam have been the leading markets,” the USDA said.

Corn production in the Philippines is projected to be stable at 8.1 million MT in November.

Southeast Asia is projected to import 18.005 million MT of corn in the November, up 5% compared to the estimate for October. Consumption is expected to increase 2% to 50.450 million MT. — Vincent Mariel P. Galang

New Megaworld condo to generate P5.2-B sales

MEGAWORLD Corp. is targeting to raise P5.2 billion in sales from a new residential condominium project in Sta. Cruz, Manila.

In a statement, the listed property developer said it launched the 34-storey Kingsquare Residence within the San Lazaro Tourism and Business Park.

The residential tower will offer 961 units, composed of studio type, which will span up to 31 square meters (sq.m.); one-bedroom type, which will span up to 46 sq.m.; and two-bedroom type, which will span up to 46 sq.m.

Megaworld said it is bullish on the project as it is located near the University Belt and several hospitals such as the University of Santo Tomas Hospital, Chinese General Hospital and Metropolitan Medical Center.

“This new residential development is perfect for students, teachers, doctors and other professionals, including families who have kids studying within the area. It is very close to schools and universities, hospitals, and soon, a mall that will have a direct connection for residents,” Wilson Sy, first vice-president for sales and marketing in Megaworld Manila, was quoted in the statement as saying.

Megaworld said the project is also located near the Light Rail Transit Line 1 and Philippine National Railways. It is also close to the España Interchange which would link it to the South Luzon Expressway and North Luzon Expressway.

“Everything is just within easy reach, whether you want to go north or south. It is also walkable to downtown Manila via Rizal Avenue (Radial Road 9), and Lacson Avenue (Circumferential Road 2),” Mr. Sy said.

The Kingsquare Residence project is scheduled for completion in 2024.

Megaworld is owned by tycoon Andrew L. Tan and is primarily engaged in real estate development, leasing and marketing.

In the first half of the year, the company saw its attributable net income grow 16% to P8.3 billion, driven by the 20% rise in its revenues to P16.8 billion.

Megaworld is under Mr. Tan’s holding firm Alliance Global Group, Inc., which operates businesses in liquor, gaming, quick-service restaurants and infrastructure development. — Denise A. Valdez

Frou frou and excess mark Giambattista Valli x H&M collaboration

THERE WAS Wang, Kawakubo, Balmain, Kenzo, and even Lagerfeld. Every year, H&M collaborates with an important brand or fashion designer, and this year, it’s Giambattista Valli. Manila couldn’t have been more pleased.

Minimalism and clean lines could suck it, Mr. Valli seems to say, for his creations of fizz and frou frou seems like a middle finger to stark lines and sober colors. If it’s bright, ruffled somewhere, and has layers and layers of tulle, it’s probably Giambattista Valli. He brings this aesthetic to his collaboration with H&M, with models such as Kendall Jenner. His regulars meanwhile, include figures such as Demi Moore, Reese Witherspoon, and even Queen Rania of Jordan, so in a way you can say you’ve worn the same thing.

Now, for the items: girls nearly almost fought for a red dress with an asymmetrical tulle skirt, during the invitation-only drop last Thursday, where the H&M store in Greenbelt 4 was transformed into a feminine paradise with pink faux fur carpeting.

Other items were hoodies encrusted with pearls, beautiful leopard print coats, a tiger-print blazer, tulle dresses in pink.

The collection was elevating — it looked rich the way people looked at the rich a century ago. It was unabashedly excessive, with, for example, a leather jacket trimmed in faux ermine. Sequinned jackets were up for grabs, as well as transparent t-shirts — for something more modern, there’s a collection of hoodies too.

Gym duffels with prints of paintings with a Baroque feel were also available, and shares a print with a scarf.

And, yes, of course they were a bit pricey for fast fashion fare: the least expensive item was a scarf for about P2,000, while the red dress the girls were all ogling cost about €399 (P22,228.99 at a conversion rate of 55.71).

“The goal is to share my love for beauty and to be able to be part of everyone’s “happy moments,” to help create love stories all around the world,” Mr. Valli was quoted as saying in a press release. — JLG

DoE won’t approve Meralco’s terms for selection process

MANILA Electric Co. (Meralco) is free to adopt its preferred terms of reference in the competitive bidding for the supply of 1,200 megawatt (MW), but the Energy chief will not approve a process that is different from what he previously suggested.

“Wala na ako magagawa kung ayaw nila eh ayaw ko rin (I cannot do anything if they do not like [my suggestions], I also don’t like theirs),” Department of Energy (DoE) Secretary Alfonso G. Cusi told reporters last week when asked about an update on Meralco’s planned competitive selection process (CSP).

Mr. Cusi said he replied to the letter from Meralco detailing how the company intends to conduct the CSP.

The continuing exchange of correspondence between him and Meralco arose after the company invited power generation companies to supply its energy needs for the coming years. Two of the three bid invitations resulted in power supply agreements (PSA). The third was declared a failure as only one company — Meralco’s power generation unit — came forward with an offer.

Mr. Cusi suggested changes in the term of reference for the CSP to allow existing or brownfield projects to participate. Meralco preferred only new power plants or greenfield projects to supply the 1,200 MW.

“I don’t need to approve it if they want to publish it, they can do it as long as sasabihin nilang hindi ko ito inaprubahan (they will say that I did not approve it),” Mr. Cusi said.

“Kasi ’yung first bidding, sabi inaprubahan ko eh hindi ko naman inaprubahan ’yun. Ang inapruba ko lang eh publication nila (Because in the first bidding, it was said I approved it, but I did not. What I approved is the publication),” he added.

Asked whether a CSP called by Meralco under its preferred terms would be valid, Mr. Cusi said: “They are a private entity at meron kaming (and we have) CSP rules.”

The CSP rules were issued by DoE to allow bidders to offer the least cost power to benefit consumers. The power generation charge agreed under a PSA is passed on to electricity users and appear in their monthly electricity bill.

“Pero (But) to avoid these problems, we are coming up with a CSP template,” Mr. Cusi said.

“Mahirap kasi sa Meralco kaya I want it open eh because sila ang DU (distribution utility) at the same time owner ng generation. Kaya dapat medyo iba ang sistema ng CSP. (The difficulty with Meralco, that’s why I want the bidding open to all, is because they are the DU and at the same time the owner of power generation. That’s why it must follow a different CSP system),” he added.

Mr. Cusi said he had been working on coming up with a CSP template, but said its application must be prospective. — Victor V. Saulon

Stock index to rise further on earnings reports

By Denise A. Valdez
Reporter

THE MAIN INDEX is seen to keep rising this week, driven by earnings reports from listed banks which analysts expect to have seen gains in the third quarter.

The benchmark Philippine Stock Exchange index (PSEi) closed flat on Friday, inching down 8.05 points or 0.1% to 8,065.76 at the end of last week’s trading.

However, on a weekly basis, it was still 0.69% higher at 8,065.76, as last week also saw a record-breaking performance from the main index when it closed at 8,216.68 on Tuesday — its best finish since July.

Trading volume improved last week to P33.96 billion from the previous week’s P26.26 billion, but offshore investors trimmed their net purchases to P722 million from P1.75 billion in the week prior.

Heading into a new week, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said there is a “strong possibility” that the PSEi will keep moving up, driven by fund inflows from foreign investors.

“We may see it build momentum and trade in a new range… Once investors realize how well our economy has performed and start looking at fundamentals again, we will see investors flood back into this market and take it to new highs,” he said in a market note sent Sunday.

“We are looking to the financials sector to lead the rally as banks will continue to post enormous growth due to rate cuts from the central bank,” he added.

After last week’s positive reports on the easing of October inflation to 0.8% and the robust economic expansion in the third quarter, with gross domestic product growth at 6.2%, analysts are hopeful investors will keep the market’s momentum.

But Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said the market may consolidate from 7,800 to 8,200 as it continues to be “saddled with a lot of offerings.”

He said in a text message he expects this week’s drivers to be “still the developments in the US-China trade negotiation, earnings report of local companies, economic stimulus announcements in China as well as in Europe, & MSCI rebalancing of local companies.”

Next week will also be the last for listed firms to report third-quarter earnings, with the deadline set on Nov. 15.

Mr. Mangun said it is important to watch what happens in the next few weeks as it will determine whether there will be a “Christmas rally” at the local bourse towards the end of the year.

“The main index has traded sideways since the beginning of the year, building momentum for a bigger move. We are still convinced that it is going to be a move higher in the long term despite all the gloom and doom that we are seeing abroad,” he said.

BSP orders closure of two rural banks

THE BANGKO SENTRAL ng Pilipinas (BSP) ordered the closure of Batangas-based Maximum Savings Bank., Inc., mandating the Philippine Deposit Insurance Corp. (PDIC) to take over the rural bank.

The lender was prohibited from doing business on Nov. 7 pursuant to Section 30 of the amended Republic Act. No. 7653 or the New Central Bank Act, according to a circular letter from the central bank.

“Maximum Savings Bank, Inc. has a network of three branches with its main branch located in Batangas City and the other branches located in Sabang and Calapan City, both in Oriental Mindoro,” the BSP said in a statement.

Aside from Maximum Savings Bank, AMA Rural Bank of Mandaluyong, Inc. was also ordered to shut down. The latter has said it will challenge the closure and will seek ways to resume their operation.

“AMA Bank assures our clients, employees, and stakeholders that we are fit to operate in every capacity. We challenge the closure as unreasonable. Guided by legal measures, we are exploring all possible courses of actions to resume our full operations and continue to serve you,” the bank said in a statement on Sunday.

With its main branch in Mandaluyong, AMA Rural Bank of Mandaluyong has a total of 10 branches that are in Pasig; Cainta and Morong, Rizal; Bacoor, Cavite; San Pablo and Calamba in Laguna; Baliuag, Bulacan; San Fernando, Pampanga; and Baguio City.

“The bank’s management regrets this development as the bank based on its latest financial statement filed with the Bangko Sentral ng Pilipinas (BSP) is the 15th largest rural bank in the country in terms of assets with total resources at P2.76 billion as of end September 2019,” the bank said.

“The bank is considered as the fifth largest in capitalization with P1.04 billion, and a net loan portfolio of P1.90 billion, consisting mainly of teacher salary loans, estimated to be the 13th largest among rural banks. The bank is liquid with its shareholders’ capital injection of an additional P405 million, and a total deposit due from BSP/other banks amounting to P246 million,” it added.

The BSP assured depositors of both shuttered banks that the PDIC will be “ready to serve” valid deposit claims and complete the processing of claims in accordance to PDIC’s guidelines.

Moreover, the central bank assured that the shutdown of both rural lenders will not do harm to the Philippine banking system considering their “relatively small sizes.”

“As of 30 June 2019, their total assets are equivalent to only 0.02% and 0.002%, respectively, of the total assets of the banking system. The overall Philippine banking system remains sound and stable with ample liquidity and high level of capitalization as BSP continues to promote good governance among its supervised institutions to ensure the soundness of the banking system and to protect the interest of the banking public,” the BSP said.

Despite the closure of more rural banks this year, central bank data showed that total assets of small lenders grew 4.9% to P275 billion from P262 billion as of end-June last year. — L.W.T. Noble

Nike Kyrie 6 now available in PHL

THE LATEST iteration of National Basketball Association superstar guard Kyrie Irving’s shoe line for Nike is now available in the local market, including a special “Manila” colorway which stands to celebrate the passion of the Filipinos for the game of basketball.

Officially dropping today, the Manila colorway of the Kyrie 6, which is part of the line’s Preheat Collection, will be made available in limited quantities at select Titan and Nike retailers.

Much like the last two editions of the shoe line, Kyrie 6 brings to the fore the style and personality of the NBA All-Star, who is now playing for the Brooklyn Nets after spending the previous two seasons with the Boston Celtics.

The Kyrie 6 boasts of new as well as familiar features to enhance one’s game.

New is the Traction 360 grip which helps one feel quicker and more connected to the court. Micro textures on the top of the forefoot extend that connection during extreme banking.

It features a plush foam, or optimum cushion, and a smooth underfoot feel at the heel while the midfoot strap offers increased stability and arch support.

Familiar are Mr. Irving’s personal and spiritual connections on the design, including the healer’s hand, all-seeing eye, number 11 and his mantra “hungry and humble.”

“The Philippines’ boundless enthusiasm and passion for the game is celebrated through a side lenticular graphic of the uniquely designed courts you find tucked away in the smaller neighborhoods of Manila. A Filipino flag inspired image is featured on the left strap and to signify the Philippines, the right strap boasts the letters ‘PH’,” said Nike, in a release, of the Manila colorway of the Kyrie 6.

The Nike Kyrie 6 sells for P6,745 with the “Jet Black” colorway set to be released on Nov. 22. — Michael Angelo S. Murillo

China reshapes global meat markets as African Swine Fever rages

LONDON/BEIJING — China is scouring the world for meat to replace the millions of pigs killed by African swine fever (ASF), boosting prices, business and profits for European and South American meatpackers as it re-shapes global markets for pork, beef and chicken.

The European Union, the world’s second largest pork producer after China, has ramped up sales to the Asian giant although it can only fill part of the shortfall caused by ASF. Argentina and Brazil have approved new export plants to meet demand and are selling beef and chickens, as well as pork, to fill the gap. U.S. producers, however, have been hampered due to tariffs imposed by Beijing.

Other Asian countries are also ready to step up imports as they, too, deal with outbreaks of ASF. Vietnam, the Philippines, North and South Korea, Laos, Myanmar and Cambodia are all struggling to contain outbreaks of the disease, which is deadly to pigs although not harmful to humans.

“It is very good news for those involved in processing and have licenses for exports to China,” said Justin Sherrard, global strategist, animal protein at Rabobank.

Major EU pork processors include Danish Crown, Tonnies Group and Vion Food Group although the market is fragmented with many small- and medium-size players.

Shortages in the world’s top pork consumer have been exacerbated by the upcoming Lunar New Year celebrations in late January, when pork, and pork dumplings in particular, play a central role in the food on offer.

One of the biggest European players Danish Crown said there had been a very clear jump in demand from China in the run-up to the Lunar New Year and it was bullish on the outlook for 2020.

China’s state-owned agriculture conglomerate COFCO said this week it had agreed to buy $100 million of pork from Danish Crown in 2020 to help ease the domestic shortage.

NEW PLANTS APPROVED IN SOUTH AMERICA
Rabobank estimates that China’s hog herd, the world’s largest, fell by half in the first eight months of 2019 and will likely shrink by 55 percent by the end of the year.

Many more meat plants in Argentina and Brazil have recently been approved to export to China including beef and chicken as well as pork.

Nicholas Lafontaine, a cattle rancher from the town of Azul, 300 kilometers (186 miles) southwest of Buenos Aires, said China had traditionally taken cheap cuts with premium steaks destined for the EU.

China is now taking the whole carcass, reducing the amount of meat sold on the local market for Argentina peso, a currency which has lost around a third of its value this year.

As processing margins have improved, plants have reopened.

The other benefit that comes from growing Chinese demand is the reopening of beef plants, he said, adding that when a factory opens its doors it is thinking about China.

Neighboring Brazil has also benefited.

According to Brazilian meat trade groups, in one go Beijing authorized Brazil to more than double the number of beef plants with permits to sell directly to mainland China — to 33.

Brazil exported 1.64 million tonnes of beef in 2018 with China buying 19.3% of the volume, trailing only Hong Kong. The South American country’s exports have been forecast to rise to 1.8 million tonnes this year.

“China is the market paying the highest premiums for Brazilian meatpackers,” Luciano Pascon, chief executive of privately-owned meatpacker Frigol, told Reuters in an interview.

TRADE WAR HITS U.S. PRODUCERS
Hefty tariffs on American pork imposed by China as part of the ongoing trade conflict are likely to mean that the US industry will benefit less than its rivals.

US-based meat packers such as Smithfield Foods have, however, been able to secure some direct sales. Tyson Foods expects to benefit from African swine fever by increasing sales to China or other countries as the outbreak redirects global meat trading.

Tyson Foods’ share price has risen about 50 percent so far this year.

Trent Thiele, a farmer who raises about 60,000 hogs a year in Elma, Iowa, said, however, the trade war is hurting American hog producers. Thiele said he would prefer selling US pork to Chinese buyers than picking up residual business elsewhere in the world because China is a main buyer of products such as pigs’ feet and organ meat that other countries have little appetite for. “A lot of our other competitor countries are obtaining the market share that naturally would have been ours if we didn’t have the retaliatory tariffs,” said Thiele, president of the Iowa Pork Producers Association.

ASTRONOMICAL
Imported pork ribs currently cost around 40,000 yuan ($5,680) per tonne, compared with 17,600 yuan in spring 2019, traders said, while prices for other cuts such as pig front leg and rib meat have roughly doubled in that period.

“Right now, prices are astronomical, and the risk is very high,” said a Beijing-based beef importer, who was struggling to gauge the right volumes to meet demand and avoid being left with expensive stock at the end of the holiday period.

The United Nations Food and Agriculture Organization’s Meat Price Index is up 12.5% so far this year and is at the highest level since January 2015.

The pork component has risen by more than 20%. — Reuters

First Hyundai class 2 modern jeepneys roll off production line

HYUNDAI ASIA Resources, Inc. (HARI) marked another milestone as it received the first five units of the HD50S Modern Jeepney Class 2 from assembly partner Del Monte Motor Works, Inc. (DMMWI) recently.

These initial units were turned over to HARI Commercial Vehicle (CV) dealerships in support of the government’s PUV Modernization Program.

HARI President and CEO Ma. Fe Perez-Agudo said at the roll-off ceremony, “Since we began our Commercial Vehicle business in 2016, we have strongly supported PUV Modernization, as we are excited about the many new ways we could serve Filipinos. At last, we are thrilled to see our vision and our promise come to life! We forged this strong partnership with Del Monte since we share the same aim — give jeepney operators and commuters a safer, more efficient, and convenient mode of transport.”

The Hyundai H-100 Modern Jeepney Class 1 and Hyundai HD50S Modern Jeepney Class 2 recently received their Certificate of Compliance (COC) from the Department of Transportation, signaling that the models are ready for deployment across the country.

Narciso Morales, president of DMMWI, expressed confidence in his plant’s capacity to meet the gold standards of Hyundai: “We have been in this business for 70 years… with six plants all over the country. Combining Korean technology and Del Monte’s experience in the manufacturing sector, we are determined to accomplish HARI’s projected target.”

Established in 1950, DMMWI promotes Filipino engineering ingenuity through skilled craftsmanship of durable bodies for trucks and buses. Del Monte also assembled Hyundai’s initial Class 2 prototype unveiled during the opening ceremonies of the Hyundai Power Solutions Mobility Expo held at the LausGroup Event Centre in San Fernando, Pampanga.

After delivering their messages, the company presidents presided over the ceremonial champagne spraying of the new units. HARI and Del Monte also conducted a test ride of the new units with Hyundai dealer principals and transport cooperatives to showcase the Modern Jeepneys’ safety and comfort.

The Hyundai Modern Jeepney Class 2 is built on Hyundai’s HD50S platform and is powered by a 2.9-liter Euro 4-compliant CRDi engine that provides better fuel efficiency, reliability, and cleaner emissions. It is designed for enhanced stability and power-to-weight ratio, boasting a 3,415mm wheelbase.

The Class 2 vehicle also features roof-mounted air-conditioning, AFCS, Wi-Fi, GPS tracking, CCTV cameras, 7-inch monitor, and speed limiter. It can accommodate 22 seated passengers + 1 driver as well as 8 to 10 standing commuters.

This roll-off ceremony came on the heels of HARI and DMMWI formalizing their partnership by inking a Memorandum of Agreement. DMMWI will assemble Class 2 Modern Jeepneys for local transport cooperatives as part of the PUV Modernization Program.

Senate rules out delay in 2020 budget approval

THE Senate finance committee is set to sponsor on Monday the proposed P4.1-trillion national budget for 2020, in time for its target enactment in mid-December.

Senator Juan Edgardo M. Angara, who heads the panel, is working to avoid a repeat of the almost four-month delay in the signing of the 2019 General Appropriations Act (GAA).

“The experience has only underscored that for us to maintain our country’s momentum and upward trajectory, we can afford no more delays, especially when public spending can account for up to 20% of the entire economy,” Mr. Angara said in a statement yesterday.

He said the chamber is on track to submit the annual spending plan to President Rodrigo R. Duterte “by mid-December or the third week at the latest.”

Senate Majority Leader Juan Miguel F. Zubiri said last week the Senate might debate on the budget measure for two weeks before it starts reconciling its version with the House of Representatives version in a bicameral conference committee on Nov. 25 to 30.

Under a report approved by the finance committee, the lion’s share of the budget will go to the education sector — P525.88 billion to the Education department and P67.31 to state universities and colleges.

Among the agencies that will receive the highest appropriations are the Public Works department with P529.77 billion; Interior and Local Government department with P237.99 billion; Defense department with P191.34 billion; Social Welfare department with P158.41 billion; and Transportation department with P126.86 billion.

The smallest share will go to the Joint Legislative-Executive Council (P4.36 million); newly created Department of Human Settlements and Urban Development (P613 million); Office of the Vice President (P664 million); and the Commission on Human Rights (P863 million).

The House gave P519.65 billion to the Education department and P65.36 billion to state universities. The bill allotted P529.75 billion to the Public Works department, P237.22 billion to the Interior and Local Government department, P189.65 billion to the Defense department, P158.35 billion to the Social Welfare department and P146.04 billion to the Transportation department.

The House approved its version of the 2020 budget bill on final reading on Sept. 20. The bill was certified as urgent by Mr. Duterte, allowing the chamber to do away with the required three-day interval between second- and third-reading approval. — Charmaine A. Tadalan

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