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Peso to climb further on weak US economic data

THE PESO is expected to climb further this week on weak economic data out of the United States last week and as Brexit negotiations continue.

The local unit closed at P51.295 versus the greenback on Friday, appreciating by 12 centavos from its P51.42-to-a-dollar close on Thursday.

Week on week, it strengthened by 28 centavos from its P51.58 finish on Oct. 11.

Dollars traded on Friday thinned to $1.036 billion from the $1.291 billion seen on Thursday.

Traders attributed the peso’s rally to positive sentiments regarding the United Kingdom’s (UK) exit from the European Union (EU) and weak US data.

“The continued strength and recovery of the peso came on the back of positive risk-on sentiments as we’re seeing weak US data on manufacturing and housing,” a trader said in a phone call, also noting progress in the Brexit talks.

“There’s this progress from the Brexit deal with the EU after three long years. It’s not that stepping stone yet compared to the vote from UK parliament this Saturday,” a second trader explained in a phone call.

US homebuilding tumbled from more than a 12-year high in September, but single-family home construction rose for a fourth straight month, suggesting the housing market remains supported by lower mortgage rates even as the economy is slowing.

The moderation in economic growth was underscored by other data on Thursday showing manufacturing output falling last month and factory activity in the mid-Atlantic region decelerating in October. The economy is being constrained by a 15-month trade war between the United States and China, which has dented business sentiment and caused a drop in capital expenditures.

Ironically, manufacturing has borne the brunt of the trade tariffs, which the White House argues are necessary to protect industries from what it says is unfair foreign competition. Other parts of the economy are also starting to show cracks from the trade war, with retail sales dropping in September for the first time in seven months and services sector growth slowing.

Housing starts declined 9.4% to a seasonally adjusted annual rate of 1.256 million units last month as construction in the volatile multi-family housing segment dropped, the US Commerce department said. Data for August was revised higher to show homebuilding accelerating to a pace of 1.386 million units, which was the highest level since June 2007, instead of marching to a rate of 1.364 million units as previously reported.

On the other hand, US manufacturing output fell more than expected in September, hampered by a strike at General Motors, and the outlook for factories remained weak amid slowing global growth and unresolved trade tensions.

The US Federal Reserve said on Thursday that manufacturing production fell 0.5% last month after an upwardly revised 0.6% rise in August. Excluding motor vehicles and parts, overall industrial production and manufacturing output still fell 0.2%.

The Fed’s measure of the industrial sector comprises manufacturing, mining, and electric and gas utilities. Industrial output declined 0.4% in September after an upwardly revised gain of 0.8% in August as a result of the manufacturing softness and drop in mining production.

Meanwhile, European Union leaders gave their unanimous backing to a Brexit deal with the UK on Thursday, putting the onus on Prime Minister Boris Johnson to secure the British parliament’s approval for the deal in a vote in two days’ time.

However, things did not bode too well for Mr. Johnson with the Parliament on Oct. 19, resulting in him having to send a letter on Saturday requesting a further extension to Britain’s departure from the European Union, an EU official said, with the British prime minister obliged to ask for a delay after losing a vote in parliament.

Mr. Johnson had hoped that Saturday would see recalcitrant lawmakers support the divorce deal he agreed with EU leaders this week and finally end three years of political deadlock since the 2016 referendum vote to leave the bloc.

Instead, lawmakers voted 322 to 306 in favour of an amendment that turned Johnson’s planned finale on its head by leaving the prime minister exposed to a humiliating obligation to ask the EU for a delay until the end of January 2020, and increasing the opportunity for opponents to frustrate Brexit.

“We have been headline driven lately. If we see something favorable na mukhang walang (that it seems like there will be no) hard Brexit… it’s favorable for risk sentiment that will help the peso,” the first trader said.

“All eyes will be on…Brexit voting and the advanced [estimate for] US GDP (gross domestic product),” the second trader explained.

The traders expect the peso to move within the P51.-51.60 against the dollar this week. — LWTN with Reuters

Hog prices under pressure from panic-selling, changes in consumer preference

HOG RAISERS said prices for their produce are under pressure from small growers who were panicked into selling their herds at fire-sale prices following the outbreak of African Swine Fever (ASF) on Luzon.

Pork Producers Federation of the Philippines (ProPork) President Edwin G. Chen told BusinessWorld in a text message that the industry is also under pressure from consumer avoidance of pork due to the ASF outbreak, and urged the government to eradicate the disease quickly.

“The industry is having a hard time due to low farmgate prices,” he said, noting that farmers now fetch about P80 to P95 per kilogram (kg) for their hogs. This is much lower than the P110.15 per kg reported by the Philippine Statistics Authority for the second quarter of the year, prior to the outbreak of ASF.

“Let the industry and the government control and eradicate this animal health disease,” he said.

“Backyard and commercial farms also panicked and sold their herds at crazy low price. Many backyard and commercial farm owners are facing huge financial losses,” Mr. Chen added.

He said consumers have shifted to other types of meat amid misleading information about the dangers of consuming pork during an ASF outbreak.

“I think the consumers over-reacted to the ASF scare. They only harm their own pockets. They made the other meats more expensive,” Mr. Chen said.

“ASF is not a public health issue. ASF cannot attach to the human body. It will never cause harm to humans,” he said.

Chicken price has been increasing in recent weeks. According to the Department of Agriculture (DA), the average price of whole chicken on Oct. 18 was P173.54 per kg, up 1.7%, week-on-week.

“ASF is here to stay, [but] we will weather this and the industry will surely bounce back,” he said.

The DA’s latest count of culled pigs is 52,000, with about 17,000 infected by ASF and the remainder destroyed as a precaution. This total represents 0.41% of the 12.7 million Philippine hog population. It has yet to release an estimate on the economic impact of the disease.

About 22 areas are now confirmed to have been infected by the virus, including Rizal, Bulacan, Pampanga, Quezon City, Nueva Ecija, and Cavite.

The government has increased its financial assistance to backyard raisers whose pigs were culled to P5,000 per head from P3,000 previously. — Vincent Mariel P. Galang

Mitsubishi unveils 2020 Montero Sport

By Manny N. de los Reyes

MITSUBISHI recently took the wraps off the 2020 Montero Sport in a festive unveiling at the Grand Ballroom of Okada Manila in Parañaque City.

As expected, the new SUV sports a sharper and more robust appearance up front. Mitsubishi’s signature Dynamic Shield front view design concept has been further evolved on the new Montero Sport, emphasizing the sense of wideness with the headlights continuing from the front grille and the combination lamps at the bumper corners. The higher hood exhibits a deeper front face, while a more solid, powerful chrome part design projects a more refined, sophisticated appearance.

And the rear? The new model sports the same “melting” guitar pick-shaped taillamps, but with a fresher treatment. Save for new alloy wheel designs, the side view is largely unchanged.

Under the hood is Mitsubishi’s state-of-the-art 2.4-liter MIVEC turbo-diesel mated to an 8-speed automatic. The new Montero Sport retains the Super-Select 4WD-II system that delivers optimal traction for all surfaces and confidence-inspiring handling. The off-road mode with a newly designed switch on 4WD models elevates all-terrain performance and self-extraction capability through the integrated control of engine output, transmission settings and brake power.

Inside, Mitsubishi crafted a refreshed interior, highlighted by an 8-way power-adjustable driver’s seat, that delivers a more luxurious and comfortable feel. Needless to say, the new Montero Sport is equipped with advanced features both for convenience and safety.

An updated floor console and soft-padded interior door panels enhance luxury and comfort while a storage tray that sits under the floor console is now accessible from both left and right sides. For power users, a new 220V 150-watt AC power outlet has been added on the existing USB port at the rear panel of the center console.

Expected to be popular additions are an 8-inch color LCD meter and 8-inch Smartphone-Link Display Audio (SDA), which is compatible for Apple Carplay and Android Auto.

There is also now a power tailgate with hands-free feature, which can be opened or closed by smartphone. The tailgate system can be preset by smartphone anywhere, which enables the driver to open or close the tailgate automatically when he/she approaches or leaves the vehicle. The keyless operation system is effective between the vehicle and within Bluetooth operating range. The remote control smartphone app offers a number of functions that facilitate ease of access and added security. The app will send notification to the driver’s smartphone to lock the doors via the app when the driver leaves the vehicle with the doors unlocked.

On the safety front, the new Montero Sport is equipped with Lane Change Assist (LCA) and Rear Cross Traffic Alert (RCTA) functions, Hill Start Assist and Hill Descent Control, a multi-view camera system that limits blind spots when parking the vehicle, and seven air bags for GT 4WD, six air bags for GT 2WD, and two air bags for the GLS and GLX variants.

Initial prices for the new Montero Sport are P1,769,000 for the GLS 2WD AT and P1,998,000 for the GT 2WD AT. Color options are White Diamond, Sterling Silver Metalic, Titanium Gray, Medium Red, and Jet Black.

Charity done with style

ARGUABLY one of the most glamorous evenings of the Manila social season, the gowns and the gems were brought out for the Red Charity Gala, which would go on to benefit Philippine Red Cross, Assumption HS ’81 Foundation, and various charities throughout the country.

The grand party, on its 11th year, usually features one designer’s fashion show, and then an auction. This year, the gala went on overdrive and decided to feature 10 designers who had participated in the gala previously, namely Dennis Lustico, Furne One, Michael Cinco, Cary Santiago, Ezra Santos, Jojie Lloren, Lesley Mobo, Chito Vijandre, Joey Samson, and Rajo Laurel.

As for the auction, among the lots were: an iPhone 11 ProMax 64GB with a one-year subscription to the Globe Platinum Plan, and a one-year couple’s subscription to Kerry Sports Manila, which raised P120,000. Next came a collection of five pieces from Royal Gem, designed by actress, socialite, and political spouse Heart Evangelista, and a two-night stay at the Bellevue properties. This raised P180,000. An Ultherapy couple’s treatment was won for P680,000, and a trip to Hokkaido, with a stay at the Foxwood Chalet, was auctioned off for P680,000.

A table from Bernhardt, with chairs to match, a premier mattress from Uratex, and a trip for eight by Air Asia to Osaka was won for P500,000. Diamond earrings from Chow Tai Fook were won for P320,000, while a pair of emerald and diamond chandelier earrings from Tessera was auctioned off for P500,000. The earrings came bundled with a stay at JPark Island Resorts and Waterparks in Cebu.

A bid of P600,000 won two round trip business class tickets to any European destination by Emirates, bundled with a special bottle of Louis XIII cognac. A safari trip which would take one throughout South Africa was won for P1.2 million, and a strand of Jewelmer pearls worth $15,000 went for P 1.35 million. You do the math.

As for the fashion show, it opened with a lively presentation from Bench and its fitness wear. Everybody cheered for the guys hopping about in tracksuits (some of which were eventually peeled off). Fashion with a capital “F” started the real fun though, with Dennis Lustico’s opening number, featuring chinoiserie with headpieces like court hairstyles of the Forbidden City. The collection evokes but does not directly reference East Asia, and there was a lot of movement, verve, and color, with a bright, cheery palette given drama through volume.

Furne One’s collection made this reporter gasp. It was an almost spiritual collection in a neutral palette, with veils, capes, and surprise, bodysuits. This was accented by metal halos, and embellishments of crystal on the outfits.

Michael Cinco’s signature swishy skirts reminded one of the Powerpuff Girls, had they been found on the streets of ’60s London. The collection had been part of the designer’s collaboration with Ballet Philippines for its 50th anniversary gala at the Marriott’s grand ballroom on Sept. 29.

And as for Cary Santiago was quite the experience, and this reporter is still in a mild rush from the cleverly rendered japonisme. For example, it opened with a black kimono painted with gold, and several more kimonos and the like, with the faces of geisha dolls serving as appliques across the chest, or covering the back. I say Cary Santiago is a real genius, while the gentleman next to me, with his eyes popped open in an expression of amazement, “Well, somebody came to work today.”

The collection by Ezra Santos showed grand gowns, veils, and crystal and lace masks, accompanied by a soundtrack of whispers, which one might think references an Illuminati theme, but is actually based on his work in the UAE.

Jojie Lloren’s collection came out to “Sweet Dreams” by the Eurythmics, and the architectural construction of the terno and the Filipino kimona gave one a vision of what would happen had the soap opera Dynasty been set in the Philippines.

Lesley Mobo came out with a collection of sleek sexy gowns in jewel tones referencing the femme fatales of 1940s cinema, while Chito Vijandre’s collection showed very exotic textiles and clever references to the past: think Renaissance gowns, or Tatar culture by way of Russia, and the whole thing looked like a living painting.

Joey Samson showed an androgynous menswear collection that seemed to evoke prep schools, with the presence of a schoolmarm leading a pack of “boys” representing various stereotypes in school: the go-getter, the dunce, and so forth. Rajo Laurel’s collection was inspired by the Ati-Atihan festival, and with the movement of very heavy and rich fringe, referenced the dancing and revelry of the festival.

The show closed with a parade of all the outfits, making for one beautiful picture in the mind. — Joseph L. Garcia

Yields on government debt drop on hints of RRR cuts

YIELDS ON government securities fell as investors wait for catalysts after the Bangko Sentral ng Pilipinas (BSP) hinted on an additional cut in banks’ reserve requirement ratio (RRR) before yearend.

Debt yields, which move opposite to prices, went down by 2.2 basis points (bps) on average week on week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of Oct. 18 published on the Philippine Dealing System’s website.

“Yields tiptoed lower but volume was relatively light given the lack of fresh leads,” Nicholas Antonio T. Mapa, senior economist at ING Bank NV-Manila Branch, said in an e-mail.

“BSP Governor Benjamin E. Diokno gave hints of an end to reverse repurchase (RRP) rate cuts but also said reserve requirement ratio (RRR) may be reduced, prompting expectations for additional liquidity to help push down yields,” Mr. Mapa said.

He added that “government spending continued to free up funds previously trapped in the Treasury single account of the BSP while [foreign exchange] operations of the central bank also yielded fresh Peso funds into the system, keeping pressure on yields to edge lower.”

““The recent headline regarding the RRR cut of bond issuances from 6% to 3% effective Nov. 1 emboldened traders to be more aggressive in taking positions even as yearend is approaching,” said Security Bank Corp. First Vice-President and Head of Institutional Sales Carlyn Therese X. Dulay.

“After the Bureau of the Treasury announced they have no plans of issuing additional supply this year and Governor Diokno gave indications that the Monetary Board (MB) is open to more RRR cuts in 2019, market participants became more confident to lock in funds in bonds,” Ms. Dulay added.

Mr. Diokno earlier said the another RRR cut could be on the table depending on relevant economic data to be released in the coming months.

The BSP announced last month that it will reduce lenders’ RRR by another 100 bps effective November to bring the reserve requirement of universal and commercial banks to 15% from 16%. The reserve ratios of thrift banks will also be cut to five percent from the current six percent, and to three percent from four percent for rural and cooperative banks.

Mr. Diokno has pledged to reduce the RRR to a single-digit before his term ends in July 2023.

The MB also said it is reducing the reserve requirement rate for bonds issued by banks and quasi-banks to three percent effective next month in a bid to deepen the local debt market.

This rate is lower than the required reserves of other debt instruments issued by banks such as long-term negotiable certificates of time deposits which is currently at four percent.

On the other hand, the BSP chief said the central bank is likely done cutting policy rates for the year.

The BSP has cut benchmark rates by 75 bps thus far this year — announcing 25-bp cuts at its May 9, Aug. 8 and Sept. 26 policy meetings — to bring the interest rate on its overnight reverse repurchase facility to four percent, the overnight deposit rate to 3.5%, and the overnight lending rate to 4.5%.

These cuts partially dialed back a cumulative 175-bp increase implemented in 2018 as inflation spiked to multi-year highs.

At the secondary market on Friday, the yields on the 91-, 182-, and 364-day Treasury bills rose by 4.8 bps, 3.3 bps, and 2.1 bps, respectively, to 3.112%, 3.27%, and 3.637%.

Rates at the belly of the curve all went down. The two-, three-, and four-year debt papers lost 5.1 bps (3.91%), 5.6 bps (4.05%), and 6.1 bps (4.184%). Yields on the five- and seven-year bonds also fell 6.6 bps (4.313%) and 5.9 bps (4.522%).

At the long end, the 20-year bond saw its rate increase by 0.1 bp to 5.073% while the 10- and 25-year papers dipped by 4.4 bps and 0.4 bp to fetch 4.738% and 5.054%, respectively.

Moving forward, Security Bank Corp.’s Ms. Dulay expects yields to “stay rangebound with a downward bias…while waiting for firmer leads in the local front.”

ING Bank’s Mr. Mapa, for his part, noted that “[m]arket players will likely trade lightly for the time [being], positioning ahead of possible fresh supply and with a substantial maturity in the coming month for direction.” — Marissa Mae M. Ramos

China pork output falls 17.2% in nine months to Sept.

BEIJING — China produced 31.81 million tonnes of pork in the first nine months of this year, down 17.2% from the same period last year, official data showed on Friday, after African swine fever devastated its hog herd.

Output fell as the size of the herd declined 28.5% from a year earlier to 306.75 million head as of the end of September, the National Bureau of Statistics (NBS) said.

That was down 11.76% from the 347.61 million head it reported for the end of the first half of the year. The number of slaughtered hogs over the first nine months of the year fell 17.3% to 409.78 million head.

African swine fever, an incurable virus that kills pigs but does not harm humans, has swept through China’s hog herd, the world’s largest, since August 2018.

The decline in pork output is less than expected, with agriculture ministry data this week showing the hog herd has shrunk by 41% year-on-year, much more than the statistics bureau’s estimate of 28.5%.

Rabobank expects China’s pork production to fall by 25% this year, and a further 10% to 15% in 2020.

Agriculture ministry data shows the size of the herd has fallen for 11 consecutive months, or since October last year.

Some analysts and industry participants say the decline is even larger than the 41% estimated by the agriculture ministry.

Total meat output including pork, beef, lamb and poultry fell 8.3% in the first nine months to 55.08 million tonnes, the NBS data also showed.

China’s food prices have soared thanks to a sharp increase in pork values. Retail pork prices were up 84% from a year earlier at 43.4 yuan per kg in the week ended Oct. 2, according to data from the Ministry of Agriculture and Rural Affairs. — Reuters

Toyota CARS investments boost company capabilities

TOYOTA MOTOR Philippines Corp. (TMP) presented to the media last week its high-tech facilities, which were completed under the Comprehensive Automotive Resurgence Strategy (CARS) Program.

The company’s P5.38-billion investments in the CARS project enhanced not only the company’s local production capabilities, but ultimately added value to revitalize vehicle and parts manufacturing in the country.

In his welcome message, TMP President Satoru Suzuki said that, “We, at Toyota, have always believed that the auto manufacturing industry’s growth is a catalyst for national development. As such, we have continued the local production of our best-selling models over the years, thereby providing employment and sustaining many small- and medium-scale enterprises that are the backbone of our economy.”

TOWARDS ‘SMART’ AND ‘GREEN’ MANUFACTURING
For TMP alone, CARS investments include the local parts production of the Toyota Vios at the Resin Injection Molding Facility for bumpers and instrument panels, Roller-Hemming Robots at the welding line, and the newly inaugurated A0 Press Line for stamping of side member panels.

Through these investments, TMP has started its journey towards “smart manufacturing,” integrating high-tech equipment in the Toyota Production System. Such facilities use robots to automate repetitive tasks, making production processes more efficient. To handle new production technologies, TMP also made substantial investments in manpower training for the acquisition of new skills.

Aside from acquiring new production technologies, TMP continuously supports its local suppliers in developing technical know-how, upgrading their manpower skills, and in addressing technical gaps through Technical Assistance Agreements (TAA) with Toyota’s network of suppliers in the Asia-Pacific region. Among the CARS-enrolled suppliers having TAA include Valerie Products Manufacturing (with Ogihara Thailand Co. Ltd.) and Manly Plastics (with Toyoda Gosei Thailand Co. Ltd.).

Through strong collaboration, TMP and its suppliers were able to produce the Toyota Vios with greater local content, specifically for big body shell and large plastic parts that have a very complex nature of production. Currently, localization ratio is at 58%.

In preparing for a more sustainable future, Toyota has started equipping its manufacturing operations with greener technologies. TMP’s investment in the 1-MW solar array enables supply of about 4% of the manufacturing plant’s annual energy requirements, reducing 790 tons in CO2 emissions.

Likewise, several karakuri projects in the production line have been started to further reduce electricity consumption, such as the use of mechanical equipment which optimize a gravity-balance system. These initiatives are well aligned with the objectives of the Toyota Environmental Challenge 2050 — to lessen carbon footprint in every stage of business operations and add more value to society.

CONTRIBUTION TO PHILIPPINE ECONOMY AND SOCIETY
The demand for locally produced vehicles has enabled Toyota to expand its production operations in the country, hence contributing more to the Philippine economy in terms of investments, taxes, employment and technology transfer.

“We take it as an honor and privilege that Toyota’s business activities in the country have given us the opportunity to contribute, not only to our Team Members, but also to the development of our supply chain and our dealer network. These activities have also given us the means to implement the many corporate social responsibility projects that we have pursued directly and through the TMP Foundation,” Mr. Suzuki remarked.

In its over 30-year history, TMP has grown to be the largest auto manufacturer and distributor in the country with the widest product lineup of 21 models and 71 dealer outlets nationwide to date. Employment in TMP’s value chain has reached over 55,000 employees, encompassing white- and blue-collar jobs.

Having a high multiplier effect, the auto industry’s growth in the country has paved the way in expanding auto parts manufacturing, bringing in more investments and new technological skills and know-how. Currently, the industry employs direct and indirect manpower of over 500,000.

Serums are bestsellers at Kiehl’s

AMERICAN beauty brand Kiehl’s is ending 2019 by focusing on its bestselling serum line — from a serum which corrects dark spots to a serum which reduces fine lines and wrinkles with the power of Vitamin C — which its Philippine product manager says is an indication that Filipinos are now learning about what products will work for their skin type and needs.

“I guess people’s preferences are changing… as they go towards a more targeted type of routine,” Joan Hwang, senior product manager, told BusinessWorld during its thanksgiving event on Oct. 15 at the Peak at Grand Hyatt Hotel Manila, Taguig City.

For two years running, she said, its Clearly Corrective Dark Spot Solution, which targets post-acne marks and hyperpigmentation, has been at the top of its bestseller list, replacing the fan-favorite Midnight Recovery Concentrate which was on top for several years. Midnight Recovery is now at the fifth spot, Ms. Hwang said.

And because this year is all about hydration, something Ms. Hwang noted that many people have forgotten they need to always have no matter their skin type, she said they’ve seen “phenomenal growth” on their improved Powerful-Strength Line-Reducing Concentrate which has 10.5% L-Ascorbic Acid and fragmented Hyaluronic Acid. The serum is used for its anti-aging benefits and re-texturizing skin.

Hyaluronic Acid has been this year’s miracle ingredient with it being a humectant, or a molecule that draws hydration into the skin, as many brands came out with their own hyaluronic acid formulas.

SOCIAL COMMERCE , 2020 PLANS
But beyond its serums, Kiehl’s is ending its year with “a learning experience” as it launched its new social commerce portal in September.

“It’s not as fast [growing] as for example, an e-commerce business that already has a lot of traffic, but [social commerce] is something where we can control the branding and control what actually is communicated to the customer,” Ms. Hwang said.

Kiehl’s recently launched a portal where customers can go to its social media pages and consult with a customer representative who will then suggest products that will fit the customer’s skin type and concern. The company previously sold its products via an e-commerce platform but pulled out because they wanted an “experience comparable to what our customers will get in-store,” as Kiehl’s offer skin consultations and samples in its stores.

“There’s been demand for us [online] and we’re finding that we’re targeting people mostly from provincial areas where we’re not available,” Ms. Hwang said.

And since they’re seeing demand from places outside Metro Manila where most of Kiehl’s stores are currently located, she said that they are looking to “expand further next year to more provincial areas.”

“Right now, we currently [have a branch in] Cebu and we’re looking to add another brand in Northern Luzon… and then maybe in the future in Mindanao,” she said before adding that they can’t say where exactly yet. — Zsarlene B. Chua

DMCI acquires more land in Cebu

DMCI PROJECT Developers, Inc. has bought more land in Cebu to support its plans to expand its presence outside Metro Manila.

The operator of DMCI Homes said in a statement over the weekend it recently acquired a 9,695-square meter property in Lahug, Cebu City, which it is looking to develop into a vertical community.

“Cebu is one of the fastest growing economies in the Philippines. Expanding here is a natural step for us,” DMCI Homes President Alfredo R. Austria was quoted in the statement as saying.

The land is located near Cebu IT Park, Cebu Business Park, University of the Philippines Cebu and Metro Sports Center, making it a prime spot with guaranteed foot traffic.

The latest land acquisition brings DMCI Homes’ total land bank in Cebu to 55,617 square meters. This takes into account the property that the company had bought last year located in Brgy. Guadalupe, Cebu City. It is also eyed to be developed into a residential community.

“We are very excited to bring the DMCI Homes brand to Cebu. We believe the discerning local market will find our value-for-money proposition very attractive,” Mr. Austria said.

The two properties in Lahug and Brgy. Guadalupe are planned to become vertical communities, or a towering commercial building where different tenants occupy different floors, each catering to the needs of one another.

“Similar to its projects in other parts of the country, the two upcoming developments will be vertical communities that will bear the company’s hallmarks of innovative design and engineering coupled with resort-inspired amenities such as lush landscaping and spacious recreational facilities,” the statement said.

In the pipeline of DMCI Homes for this year are 10 projects worth P104 billion, among which are Kalea Heights in Cebu and other projects in Davao City, Quezon City, Las Piñas City, Pasig City, Mandaluyong City, and in Manila. It is allotting a total of P17.9 billion for capital expenditures this year.

In the first semester, DMCI Homes recorded a core net income of P1.19 billion, up 5% from in the same period last year due to lower project development costs. But the net income of its parent DMCI Holdings, Inc. declined 22% to P6.7 billion due to slimmer revenues from its coal and nickel mining businesses. — Denise A. Valdez

Uniqlo goes Brit with a new JW Anderson collaboration

FOR ITS fourth collaboration with Japanese apparel brand Uniqlo, British design brand JW Anderson takes inspiration from the “great British outdoors,” by offering “traditional British elements” blended with “modern designs” according to a press release.

“I liked this idea of pops of color to make the heritage Brish patterns and colors feel a bit more modern. Contrasting pops of color and tartan are very present,” Jonathan Anderson, founder of the label said in the release.

Inspired by the town of St. Ives in Cornwall, England known for its beaches and rotating modern art exhibitions, the JW Anderson Fall/Winter 2019 collection features tartan patterns and “warm Nordic designs” spread throughout a capsule collection of reversible down jackets (a collaboration standard), fleece hoodies, turtle neck sweaters, fringe skirt, a reversible two-way bag, and HeatTech lined pants for men.

The down jackets for both men and women come in “neutral and classic tones on the outside, with contrasting colors on the inside,” said the release

The Uniqlo collection is priced from P1,490 to P6,990. — ZBC

Suzuki seeks more investor-partners in car dealership business

DRIVEN to further expand its presence in the country and riding on its growing business momentum, Suzuki Philippines Inc. (SPH), the country’s pioneer subcompact car distributor, continues its Dealer Expansion Program and invites more investors across the country into the car dealership business.

The program aims to open more dealerships in the country, in particular in areas with growth potential. The dealership partnership covers the construction and operation of new dealerships.

“With the milestones Suzuki Philippines has reaped, including the ones we’ve achieved so far this year, we believe we are more equipped to grow the business further and spread to more areas in the country. We consider that now is the best time to work with more potential investors, and so we are looking for more business partners who share our vision, believe in our products and see the great possibilities in growing with the brand. We are eager to bring more of the award-winning Suzuki vehicles to more parts of the country so we hope to gain more partners to team up with and together achieve success,” Suzuki Philippines Director and General Manager for Automobile Division Keiichi Suzuki shares.

SUZUKI AUTO DEALERSHIP OPPORTUNITY OPEN IN SELECT AREAS
SPH invites investor-partners interested to venture in the car dealership business to take advantage of this opportunity to open a Suzuki Auto dealership in the country. Interested parties may submit a letter of intent to sph_auto.dd@suzuki.com.ph.

The following areas are currently available for opening a Suzuki Auto dealership:

LUZON

• Bulacan

• Camarines Norte

• Cagayan

• Cavite

• Ilocos Sur

• Las Piñas

• Oriental Mindoro

• Quezon

• Sorsogon

• Taguig

• Zambales

VISAYAS

• Antique

• Lanao Del Norte

• Masbate

MINDANAO

• Agusan Del Sur

• Bukidnon

• Cotabato

• Lanao Del Norte

• Surigao Del Norte

• Zamboanga Del Norte

SUZUKI’S BUSINESS MOMENTUM
As it climbs up the industry ranking with its continuous positive growth throughout the years, SPH drives its goal of reaching more Filipinos through various marketing initiatives. SPH brings quality driving experience to local and provincial markets with its passenger cars and commercial vehicles.

“It has always been the brand’s commitment to introduce innovative vehicles and deliver quality service that is accessible and convenient. It is our pleasure to offer our products and services to motorists in every major urban areas and provinces in the country so that we can share the Suzuki Way of Life with more Filipinos,” added Keiichi Suzuki.

For more information about Suzuki Philippines and its car dealership business plans, please visit www.suzuki.com.ph.

BoJ can ‘certainly’ cut rates if it were to ease

WASHINGTON — The Bank of Japan (BoJ) will “certainly” reduce short- to medium-term interest rates if it needed to ease monetary policy, Governor Haruhiko Kuroda said, suggesting that deepening negative rates will be the primary tool to fight heightening overseas risks.

Mr. Kuroda also said the BoJ already has a flexible framework that allows it to accelerate purchases of exchange-traded funds (ETF) if markets become volatile, signaling its readiness to moderate stock price falls that could hurt business sentiment.

“On the whole, the world economic outlook … has become less buoyant. And the timing of (pick-up) of world economic growth has been somewhat delayed,” Mr. Kuroda told Reuters, adding that risks continue to be “fairly high.”

“If we need further easing of monetary conditions, we would certainly reduce short- to medium-term interest rates. But we don’t want to reduce super-long interest rates,” he said on Saturday after attending the International Monetary Fund (IMF) and World Bank meetings.

The remarks underscore the BoJ’s concern over the pain the bitter US-China trade war and slumping global demand are inflicting on the export-reliant economy, which could prod it to ramp up monetary stimulus as early as this month.

They are also the strongest signal to date from Mr. Kuroda that if the BoJ were to ease, the most likely step would be to push its short-term rate target deeper into negative territory.

Reducing short- and medium-term rates would have a “positive” impact on the economy, while excessive cuts in super- long yields could hurt consumer sentiment by eroding investment returns for pension funds and life insurers, he said.

Under a policy dubbed yield curve control (YCC), the BoJ guides short-term rates at -0.1% and 10-year bond yields around 0% in an effort to achieve its elusive 2% inflation target. It also buys government bonds and risky assets such as ETFs.

MORE EASING STILL EFFECTIVE
Markets are rife with speculation the BoJ could ease at its Oct. 30-31 meeting, after it signaled last month the chance of imminent action by warning of escalating overseas risks.

When asked whether overseas risks remain high enough to warrant easing at that meeting, Mr. Kuroda said it was “a bit difficult to say definitely.”

While US-China trade talks have made some progress, the conflict may continue and the fate of Britain’s exit from the European Union remains uncertain, he said.

Such overseas risks and cuts in the International Monetary Funds’ global growth forecast would affect the BoJ’s projections on Japan’s economic prospects, he added.

While repeating that the BoJ won’t hesitate to ease if the economy’s momentum toward achieving its 2% inflation target is weakened, Mr. Kuroda said he had no pre-set idea on when to act.

“We have no predetermined policy decisions. It all depends on economic data,” he said, suggesting an action this month was hardly a done deal. “We have to carefully watch, analyze global and domestic economic situations.”

The BoJ has said it has four tools to ease — deepening negative rates, a cut in its long-term yield target, an increase in risky asset buying and an acceleration in money printing.

While Mr. Kuroda has said deeper negative rates is among key options, analysts have warned the move could backfire by pushing regional banks into financial trouble and hurting consumer mood.

When asked what other tools besides deeper negative rates the BoJ may opt for, Mr. Kuroda said the bank can “combine a few options” or “change some aspects” of them — without elaborating.

“We can expand our asset purchase program. Our asset purchase program includes not just long-term government bonds but also ETFs,” he said. “There are various tools to affect the economy by easing monetary conditions.”

“Our ETF purchase is very flexible … Even under the current asset purchase program, we can increase the ETF purchases significantly if needed,” Mr. Kuroda said, suggesting the BoJ can vary the pace of buying even without changing its commitment to buy at the current rate of 6 trillion yen per year.

“As far as the BoJ is concerned, we still have tools which could be used as necessary,” he said. “I don’t think the effect of monetary policy has declined.” — Reuters

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