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Analysts’ September Inflation Rate Estimates

INFLATION this month could turn out to be the slowest since mid-2016 due to “base effects” from the year-ago nine-year-high 6.7%, according to a poll of 16 economists, who also cited opposing pressures from oil price volatility after the Sept. 14 attack on Saudi oil facilities and lower pork prices amid the African swine fever (ASF) outbreak. Read the full story.

Analysts’ September Inflation Rate Estimates

Believing in and living your brand

The Entrepreneur Of The Year Philippines 2019 has concluded its search for the country’s most successful and inspiring entrepreneurs. Entrepreneur Of The Year Philippines is a program of the SGV Foundation, Inc. with the participation of co-presenters Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange. In the next few weeks, BusinessWorld will feature each of the finalists for the Entrepreneur Of The Year Philippines 2019.

Miguel Garcia
Founder and Chairman,
President and CEO
DTSI Group

MIGUEL GARCIA has always aspired to create his own brand.

Born into a family of entrepreneurs, he was exposed to business from a very young age. He graduated from Bentley College and went to the Stanford University Graduate School of Business. He also studied for a year in Sophia University in Tokyo, Japan.

Mr. Garcia remembers being offered a job in the family business, but he wanted to make a name for himself.

His first job after college was in a telecommunications company where he worked for three years.

In 1997, Mr. Garcia met people from the Philippine branch of a multinational Japanese information technology company, whom he invited to invest in his start-up company, Diversified Technology Solutions International Inc. (DTSI). DTSI has now become a leading enabler of facilities and IT solutions for Enterprises, Business Process Outsourcing (BPO) and shared services clients. DTSI designs, builds and manages facilities and enables clients with the best in class technology solutions.

Mr. Garcia recalls that back when he started DTSI, it took off immediately. After a few years and although it was doing well and was profitable, DTSI faced the same problem of many start-ups during the Asian financial crisis, which was access to credit.

“I had no collateral,” Mr. Garcia recounts, “it took me almost two years before I could get the first bank loan.”

After months of persistent applications, he was finally able to convince a local bank to extend him a loan, with both he and his wife signing a Joint and Solidary Signatures (JSS) Guaranty. The loan was put to good use and the business thrived, allowing him to repay the loan ahead of schedule.

DTSI continued to grow until it came to a point when he realized that he had to deleverage risk by bringing in a partner. In 2010, to further globalize DTSI, Mr. Garcia sought a partner with depth, breadth and aligned cultural values. He started talking to one of his supplier vendors, Nippon Telegraph & Telegraph (NTT) of Japan, a Global Fortune 100 company. After 18 months of due diligence and negotiations, DTSI and NTT forged a partnership.

DTSI’s target market includes large enterprises and multinationals. Mr. Garcia said they are only one of two service providers in the country that offer full end-to-end facilities solutions for companies. DTSI sells technology and develops services tailored to the needs of its customers, from designing office space to building their IT systems. As part of the NTT Group, DTSI develops technology-based products, solutions and services for digital disruptors. It provides digital transformation, robotic process automation, intelligent business solutions, intelligent infrastructure, intelligent workplace and cybersecurity. To date, DTSI manages over 21,000 seats of various clients spread over 30 sites.

For Mr. Garcia, the importance of trust and values is most significant when it comes to dealing with customers and stakeholders.

“People don’t do business with companies, they do business with people they trust,” Mr. Garcia said.

This is the reason DTSI’s slogan is “Going Beyond Solutions.” It means doing not only what is right, but going above and beyond what is expected. He is focused on his passion for excellence and the speed to produce better business and social outcomes.

Mr. Garcia states he is an advocate for the Philippines.

“That’s what I’m really passionate about, selling the Philippines,” he expresses, “before I could sell DTSI it’s always about selling the Philippines first and that’s what I love doing.”

DTSI has a team of people in the USA, Colombia and Morocco that markets the Philippines.

Mr. Garcia is one of the founding members of the Business Process Association of the Philippines (BPAP). As early as 2002, he foresaw the business process outsouring (BPO) industry as a major provider of jobs for the Philippines.

According to him, DTSI has played a key role in the growth and development of the IT-BPO sector. “We’ve gone so far as a company, industry and as a country. The second largest contributor to the Philippine GNP is the BPO industry,” he said. “Changing society, that’s what we’re doing and for me that’s the greatest pride of DTSI.”

He also takes pride in DTSI’s indirect contribution to Philippine growth: it is a catalyst in bringing new businesses to the Philippines, which then cascades to generating more business and employment for other industries.

As part of giving back to society, DTSI also has an annual CSR Foundation called “Fair Play for all Foundation.” It is a year-long program where DTSI employees go to Payatas to paint houses, give donations and provide education services in order to keep the youth away from drugs and crime.

Mr. Garcia sees DTSI creating the workplaces of the future. The company anticipates collaborating in the digital journeys of businesses while providing a secure environment against digital threats. Aside from foreign companies and the traditional BPOs, DTSI now aims to offer the same solutions to local enterprises and conglomerates, including banks and insurance companies.

Innovation is an ongoing process at DTSI. Mr. Garcia is aware that the technology the company sells now will be very different in 5 years.

“As soon as the technology is there, we want to make sure that we’re at the forefront and be the enablers,” he says, “there will be hurdles and detours but the challenge is to find ways to make the goal a reality.”

The official airline of the Entrepreneur of the Year Philippines 2019 is Philippine Airlines. Media sponsors are BusinessWorld and the ABS-CBN News Channel. Banquet sponsor is Uratex.

The winners of the Entrepreneur Of The Year Philippines 2019 will be announced on Oct. 15 in an awards banquet at the Makati Shangri-La hotel.

The Entrepreneur Of The Year Philippines will represent the country in the World Entrepreneur Of The Year 2020 in Monte Carlo, Monaco in June 2020.

The Entrepreneur Of The Year program is produced globally by Ernst & Young.

Big Boss allocates P10 billion for 2 cement manufacturing facilities

BIG BOSS Cement, Inc. (BBCI) is spending P10 billion to build two cement facilities in the country as it looks to increase production to 10-12 million bags of cement a month.

The cement manufacturer led by businessman Henry Sy, Jr is currently undertaking a P7-billion expansion of its plant in Porac, Pampanga, and a P3-billion new facility in Zamboanga del Norte.

BBCI President Gilbert S. Cruz said the Pampanga plant is currently running with two lines, while two more will be opened by February and May next year. This will bring its capacity to 4-5 million bags per month.

Meanwhile, one more line will be opened in Roxas, Zamboanga del Norte before the year ends. It will have a total of two lines each producing two million bags every month.

With 25 bags of cement equivalent to one ton, BBCI will have a capacity of about 4.8-5.76 million tons annually from the two plants.

“For the last one year and three months, we produced 10 million bags already. Everybody prefers our cement. The only problem is we don’t have the volume,” Mr. Cruz said in a media roundtable in Bonifacio Global City on Friday.

Mr. Cruz added that once they reach their target of 10-12 million bags per month, they plan to bring down prices to as low as P100 for each bag of cement, from the current price of P150 to P160.

“This will really bring about construction development and it may not sound good, but this will drive (away) all the foreign companies, because there is no way they can compete with our process,” he said.

Unlike other companies that use clinker as the main material to produce cement, BBCI uses a cement manufacturing process called Grinded Activated Sand by Heating, or G-ASH. This replaces clinker with substitute material that are readily available. The company’s patent for this technology is currently pending.

Once they secure the patent, the company is eyeing to expand to other countries. Mr. Cruz said they already have invitations from Malaysia and Indonesia.

BBCI has also requested for tax incentives from the Board of Investments (BoI) for its cement plants, although Mr. Cruz said they were previously turned down because they do not use clinker, which is what is granted tax breaks under the law.

“We changed our position and said that we are making clinker-like material which is called G-ASH. They’re now listening to us, and they’ve given the case to DoST (Department of Science and Technology)…Looks like they were convinced so now we’re waiting for BoI,” BBCI Vice President Ishmael D. Ordoñez said in the same event.

BBCI launched on Friday bulk cement products called B40 and B43, used for ready mix concrete and precast applications, respectively. The products have a minimum strength of 40 megapascal (MPa), indicating how much pressure concrete can withstand before it cracks or breaks down. This follows the same standards as the US and other parts of Europe. — Arra B. Francia

Geely returns to PHL with the Coolray SUV

By Ulysses Ang

LAST JULY, Sojitz G Auto Philippines (SGAP) was officially appointed as the importer and distributor of Geely cars in the Philippines. The company is the newest member of the Sojitz Corporation group, which has been in the automotive business locally since the 1960’s.

Today, two months after SGAP’s appointment, they are launching their very first vehicle offering: the 2020 Geely Coolray subcompact SUV.

With the tagline “Bring the fun back in driving,” the Geely Coolray comes with turbocharged power as standard. Also equipped with direct-injection and dual variable valve timing (Dual VVT), the 1.5-liter 3-cylinder motor generates a healthy 177 horsepower and 255Nm of torque. Paired with a wet-type 7-speed dual-clutch automatic, 0-100 km/h is achieved in just 7.9 seconds. Cruise control is standard.

As the parent company of Volvo Cars, Geely used the Swedish premium automaker’s expertise to develop the BMA or B-segment Modular Architecture. With a team of about 100 individuals from 20 countries working together, the BMA allows the Coolray, and in turn, upcoming Geely models to exceed the criteria of a five-star Euro NCAP safety rating. Apart from using the BMA platform, Geely is upping the safety game with standard ABS with EBD, Traction Control, Stability Control, and Hill Descent Control on all variants.

Targeted towards millennials and young buyers, the Coolray uses lines and angles to distinguish itself from other small SUVs in the market. Based on the company’s concept of “Racing through Space and Time,” it is confident, athletic, and bold. Seventeen-inch wheels are standard on the base Comfort model, while moving to the mid-tier Premium and top-tier Sport variants ups it to 18 inches. The Sport model also has a black roof fitted with a panoramic sunroof and various carbon fiber accents.

Inside, the Coolray uses a 7-inch LED display panel embedded in its instrument cluster that switches layout based on the selected driving mode — Normal, Eco, and Sport. For its infotainment system, it uses a 10.25-inch multimedia touchscreen with QD Link Android connectivity. The Sport trim adds the G-Pilot system which includes Auto Park Assist that slots the car into parallel and perpendicular parking spots with the touch of a button, Blind Spot Detection, and even a 360-degree parking camera. Other features on the Sport include tire pressure monitoring system and a remote start feature.

The Geely Coolray is available in three variants with the following suggested retail prices: Comfort 1.5 A/T (P978,000), 1.5 Premium A/T (P1,088,000), and the 1.5 Sport A/T (P1,198,000). The first Geely dealership is located along EDSA corner Corregidor Street in Quezon City.

Strong investor interest in AllHome IPO seen

By Arra B. Francia
Senior Reporter

UNDERWRITERS of Villar-led AllHome Corp. are confident investors will participate in its bid to raise up to P14.878 billion in its initial public offering (IPO), after a series of both local and international roadshows.

“We have been receiving a lot of interest, so that has been a strong sign of support of potential investors,” PNB Capital & Investment Corp. President Gerry B. Valenciano told reporters after AllHome’s investors’ briefing for the IPO in Taguig last Friday.

PNB Capital is the lead domestic underwriter for the offering.

Ryan Martin L. Tapia, president of co-lead domestic underwriter China Bank Capital Corp., also said that they have seen interest from cornerstone investors.

“As part of the roadshow for the bookbuilding process, the company was able to attract a lot of interest,” Mr. Tapia said in the same event.

The underwriters have allotted 70% of the offer to international investors and other qualified domestic institutions. Trading participants of the Philippine Stock Exchange (PSE) will be given 20%, while the remaining 10% will be offered through the local small investors program.

“We’re pretty confident local investors can make a good show and give the international investors a run for the allocation,” Mr. Tapia said.

AllHome has also hired UBS AG, Singapore Branch as the offer’s sole global coordinator and joint bookrunner, while CLSA Ltd. and Credit Suisse (Singapore) Ltd. will act as joint bookrunners.

The offer period for AllHome’s IPO will run from Sept. 30 to Oct. 4. Its shares will be listed on the main board of the PSE on Oct. 10.

The company, led by the country’s richest man Manuel B. Villar, is offering to the public a total of 1.29 billion shares at P11.50 each. This is made up of 1.125 billion common shares and 168.75 million shares as part of the over allotment option.

AllHome will use proceeds from the issuance to finance the establishment of 43 out of 45 new stores it will put up until 2020. This will bring its net selling area to 443,280 square meters by 2020.

Portions of the proceeds will be also used to repay debt obtained for the initial working capital of its existing 20 stores.

Asked if the company is on track to meet its target openings, AllHome Investor Relations Head Robirose M. Abbot answered in the affirmative, noting that they lease the property from other Villar-led establishments such as VistaMalls and Starmalls. The fit-out for their stores only takes about three to four months.

Treasury bonds likely to fetch higher yields

By Beatrice M. Laforga

YIELDS from three-year Treasury bonds (T-bonds) on offer on Tuesday will likely increase on the back of recent cuts by the central bank on banks’ reserve requirement ratio (RRR) as well as its benchmark interest rate.

The Bureau of the Treasury (BTr) plans to raise P20 billion via reissued bonds with a remaining life of two years and nine months, carrying a coupon rate of 4.75%.

The government raised P20 billion out of the total bids worth P56.6 billion via its offering of reissued three-year notes. The papers fetched an average rate of 3.961% when it was last offered on Aug 27., 84.2 basis points (bps) lower than the 4.803% quoted when the bonds were first offered on July 2.

A bond trader expects the average rate to fall between the 4-4.2% range while Robinsons Bank Corp. peso debt trader Kevin S. Palma said he sees it hovering around 4.000% — 4.125%.

Mr. Palma said there will be a strong interest on the three-year papers following the Bangko Sentral ng Pilipinas’ (BSP) announcement on Friday that there will be a 100-bp cut on banks’ RRR effective on the first reserve week of November.

“Three-year paper up for issuance could possibly be slightly higher from the previous auction. Strong interest for the said paper will persist after the BSP announced a cut in banks’ reserve requirements by 100bps effective November,” Mr. Palma said in a phone message on Sunday.

The first trader also said the market price will likely price in BSP’s move to slash its policy rates last Thursday.

“Slightly higher lang dun sa secondary kasi market will price in the recent cut in its policy rate and if ever kung mag-cut ng RRR, i-price in din ‘yun,” the trader said in a telephone interview.

At the secondary market on Friday, the three-year bonds were quoted at 4.210% based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.

After a late Friday meeting, BSP’s Monetary Board (MB) announced that it will slash banks’ RRR by 100 bps starting the first reserve week of November, bringing the reserve requirement for universal and commercial banks to 15% from 16%, thrift banks to five percent from the current six percent, and three percent from four percent for rural and cooperative banks.

This was just a day after the MB slashed its benchmark interest rate by 25 bps during its policy-setting meeting, reducing the rates for overnight reverse repurchase, overnight deposit and lending to four percent, 3.5% and 4.5%, respectively.

Meanwhile, the policy rate cut was the third time this year amid continued easing inflation and the need to spur economic growth, against the cumulative 175-bp hike on interest rates implemented last year to temper the inflation crisis in 2018.

Economists estimate that the one-percentage point reduction in banks’ RRR will release around P100 billion of additional liquidity into the financial system.

“Besides, the 3-year tenor has always been a sweet spot for investors,” Mr. Palma added.

The government plans to borrow P220 billion from the local market in the fourth quarter via a mix of T-bonds and Treasury bills.

It is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product.

Suzuki launches Carry subcompact utility vehicle

By Manny N. de los Reyes

SMALL CAR specialist Suzuki Philippines, Inc. (SPH) introduced Thursday last week its newest generation of workhorse vehicle, the all-new Suzuki Carry. Designed to meet the light cargo transport needs of commercial users, the Carry features upgraded specifications and a lightweight, fuel-efficient engine.

“Filipinos are a hard-working people. The all-new Suzuki Carry is engineered to match the level of dedication Filipinos put into their businesses. We designed this new workhorse vehicle to deliver any business requirements with efficiency and power to do more. With the all-new Suzuki Carry, we extend the “Suzuki Way of Life” to small and medium enterprises and be a part of their journey to success,” Suzuki Philippines Director and Automobile Division General Manager Keiichi Suzuki shares.

Succeeding the Suzuki Super Carry, which bagged the 2016 Best Commercial Utility Vehicle by Car Awards Group, Inc., (COTY-P), the new Carry amps performance with Suzuki’s stronger and fuel-efficient K15B 1.5-liter engine, providing more power to carry out every task in any road conditions with greater ease. This upgrade delivers more output power of 96hp at 5,600rpm and torque of 135Nm at 4,400rpm.

The all-new Carry stays true to Suzuki renown as a reliable and functional workhorse with its exterior design exuding simplicity, durability and a sense of balance. It has a wider and longer body with access to side gates opening from all sides, making loading and unloading cargo of any size and shape easier. The new truck is also packed with 22-rope hooks to safely secure any cargo during transit.

Supported with a bed 365mm longer and 75mm wider than its predecessor’s, the new Carry boasts a greater loading capacity of 940kg with better weight distribution when fully loaded. Its cabin space now features a more spacious design to ensure a more comfortable seating position with ample distance between the hip point and the center of the accelerator pedal. Aside from the added storage in the dashboard and the cabin, the shift lever is now situated on the dashboard to provide extra legroom for an optimum driving experience.

The Carry can be converted and modified to suit any business needs. It can be used as a utility van, cargo truck, or pickup truck with the same reliability and functionality expected of a workhorse.

The new Suzuki Carry’s prices are P509,000 for the Carry truck, P576,000 for the Carry Cargo Van, and P614,000 for the Carry Utility Van.

Also making an appearance side by side with the all-new Carry was the latest version of Suzuki’s subcompact sedan, the new Dzire GA.

Suzuki hopes to provide Filipino commuters with additional ride-sharing options with the all-new Suzuki Dzire GA. Suzuki’s popular sedan gets a fresher look to go with its easy-to-handle compact dimensions and expanded storage capacity, making it an ideal addition to a taxi fleet or ride-sharing business.

The new Dzire GA features a more compact K12M engine under its hood with increased fuel efficiency. Its interior and engine specifications help deliver economical comfort and convenience traversing the busy streets of the metro.

The Suzuki Dzire GA 1.2L with manual transmission retails for P549,900.

PLDT to upgrade network in Cauayan City

PLDT, Inc. and its wireless unit Smart Communications, Inc. signed a memorandum of agreement (MoA) with the Cauayan City government in Isabela province to help boost the latter’s efforts to become a “smart city.”

“Under the MoA, PLDT and Smart will upgrade their fixed and mobile network services to transform Cauayan, an agro-industrial hub in Northern Luzon, into a fully fiberized and Smart LTE-powered city that provides efficient digital services to its constituents,” the company said in a statement.

PLDT is committing to deliver internet speeds of up to 1 gigabits per second (Gbps) for its fixed broadband network in the area. Existing cell sites are also being upgraded to provide fourth-generation (4G) mobile data services.

“We are happy to join hands with the Cauayan City government in ushering in this new age of smart cities, and supporting their leaders’ efforts to advance the digital transformation of their communities,” PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan said in the statement.

For his part, Smart President and Chief Executive Officer Alfredo S. Panlilio said he hopes Smart’s service will help Cauayan achieve the fullest of its smart city initiatives, such as its mobile app for business transactions, tax payment and permit processing.

PLDT is investing a record-high capital expenditure of P78.4 billion this year to support its network expansion all over the country. It said its fiber footprint has now reached more than 283,000 kilometers.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

The constantly evolving terno

A COLLABORATION by clothing conglomerate Bench and the Cultural Center of the Philippines (CCP) culminates again in a celebration of the Philippine national dress, the terno, in a gala on Jan. 26, 2020 called Ternocon.

Last year’s Ternocon featured designers JC Buendia, Cary Santiago, and Len Cabili as the mentors for the contestants, but for Ternocon 2020, the mentors will be Ivar Aseron, Lesley Mobo, and Philip Rodriguez. Like last year, designer Inno Sotto will serve as chief mentor.

The gala was launched via a press conference and a fashion show in the Bench Tower in BGC on Sept. 25. It included a short preview of some of the collections next year by the mentors, along with last year’s double gold medalist, Marlon Tuazon. The contestants — Hannah Adrias, Hanz Coquilla, Jean Dee, Abdul Dianalan, Jaggy Giarino, Krizia Jimenez, Windell Madis, CJ Martin, Dinnes Obusan, Xernan Orticio, June Pugat, Renz Reyes, Gavin Ruffy, and Toping Zamora — were also introduced.

Mr. Tuazon showed off a terno in ultramarine sprinkled with crystals, while Mr. Aseron showed a white one with wide-legged trousers, accented with black patterns recalling the Vinta. Mr. Mobo showed a beautiful white brocade terno with a mantilla tied around the skirt as a tapis (overskirt), and then Mr. Rodriguez showed a bit off flamenco flare with a terno paired with an asymmetrical balloon skirt.

EVOLUTION
The terno is a national dress that is in constant evolution. Think about it this way: you’ll always know what a kimono or a sari would look like, but the terno can always surprise you. This may have to do with the terno’s history, which began with the quasi-Victorian traje de mestiza, with a fichu and other such details, which was eventually pared down to a simpler dress, retaining the butterfly sleeves. “It has nothing to do with fashion,” said Mr. Sotto in an interview with BusinessWorld. “I think it has everything to do with us as Filipinos. Filipinos are constantly changing things.”

Margie Moran-Floirendo, former Miss Universe and current CCP chair, meanwhile, praised the innovations in the terno, but pronounced a caveat for those who might take it too far. “I think it’s very innovative for designers to produce a terno that evolves. But maintaining the sleeves — for me, it is important, the sleeve. The size of the sleeve, you can’t drastically change it, because that’s what it’s known for.”

“It’s good to be traditional,” she adds. “You still maintain the tradition of having the correct sleeves. Some designers try to be too modern, making too short or too small a sleeve. That does not look nice, because it’s [about] the proportion of the arm.”

The ultimate goal of Ternocon is to introduce the terno to a wider audience, via training and cultivating the talents of designers to make impeccable ternos. “When you make the right terno, more designers are able to participate.”

If anything, it has working. Ms. Floirendo noted that more women of more varied ages are wearing the terno these days, as opposed to during her time as a beauty queen in the 1970s. “What’s nice about it is even the younger ones are also wearing it now, versus during our time. We never wore the terno when we were young. It felt too old to wear one,” she said with some girlish laughter. — Joseph L. Garcia

Government debt yields end mixed after rate cut

By Marissa Mae M. Ramos
Researcher

YIELDS on government securities (GS) ended mixed last week as market players reacted to the developments between the US and China as well as BSP’s interest rate cut.

Debt yields dipped by an average of 3 basis points (bps) on a week-on-week basis, according to the PHP Bloomberg Valuation Service (BVAL) Reference Rates published on the Philippine Dealing System’s website last Sept. 27.

“Local yields were slightly lower this week due to safe haven demand from fluctuating trade developments between US and China,” a bond trader said in an interview.

The market reaction was due to the cancelled visit of a Chinese delegation to farms in Montana after US President Donald Trump’s comments against China during the UN General Assembly, the bond trader said.

“Yields likewise fell due to dovish BSP (Bangko Sentral ng Pilipinas) policy expectations and impeachment concerns in the US,” he added.

Rizal Commercial Banking Corporation (RCBC) economist Michael L. Ricafort called the decline a “slight healthy downward correction” which came after the “widely expected 0.25 bps cut in the local policy rates by the BSP following the 0.25 bps cut in the key short-term interest rates by the US Federal Reserve on Sept. 18.”

“Any further easing of local monetary policy by way of a cut in local policy rates and/or any further cut on banks’ RRR (reserve requirement ratio) cannot be completely ruled out, especially if the US Federal Reserve makes further cut/s in the key US short-term interest rates and/or local GDP growth data remain relatively soft,” he said in an e-mail.

The BSP trimmed benchmark interest rates for the third time this year on its policy meeting last Thursday. The move left the overnight reverse repurchase (RRP) rate at four percent (from 4.25%), the overnight deposit rate at 3.5% (from 3.75%), and the overnight lending rate at 4.5% (from 4.75%).

The country’s central bank also decided to cut its inflation forecast to 2.5% this year from the 2.6% in its Aug. 8 meeting. Headline inflation rate averaged 3% as of August.

RRR of the local banks were likewise lowered by 100 bps a day after the policy rate cut. Reserve requirements for universal banks decreased to 15%, thrift banks to 5%, and rural banks to 3%.

At the external front, the Fed already cut its interest rate by a quarter-point earlier this month.

On Thursday, US Agriculture Secretary Sonny Perdue confirmed China’s cancellation of the visit in the US farms that was previously labelled as a “goodwill” gesture. The cancellation further fueled market sentiment which came after Mr. Trump said he would not like an agreement with China to buy more US goods, but a complete trade deal instead.

The US president further said that China’s “abuse” of the system was “over” at the UN. Formal impeachment proceedings were also filed by US Democrats against Mr. Trump last week.

As a result, GS yields finished mixed in the secondary market last Friday. Short-term debt papers such as the three- and six-month Treasury bills (T-bill) declined by 7.8 bps and 6.1 bps, respectively, to end at 3.129% and 3.401%. Meanwhile, the one-year T-bills were steady at 3.705%.

At the belly of the curve, yield of the two-year notes inched upward by 0.5 bp to 4.051% from 4.046% the previous week. On the other hand, the rate on the three-year Treasury bonds (T-bond) remained at 4.21%, while the four-year T-bonds slipped 0.4 bp to 4.365% from 4.369%.

Yields on the five- and seven-year debts increased by 0.2 bp and 1.3 bps, respectively, to 4.512% and 4.701%.

In contrast, debt papers at the long end fell with the 10-, 20-, and 25-year papers, losing 1.6 bps (4.82%), 8.6 bps (5.115%), and 10.1 bps (5.1%), respectively.

Moving forward, RCBC’s Mr. Ricafort said that “[m]ost local interest rate benchmarks (PHP BVAL yields) could still continue the latest week’s slight healthy downward correction” which could stem from the quarter point cut by the BSP, the easing inflation trend in the country to be reported on Friday, and the stronger performance of the peso.

Mr. Ricafort also noted the lower global oil prices and the easing of the benchmark bond yields in the US and in other developed countries as possible catalysts.

The bond trader added, “Local yields might move with a downward bias next week, as expectations of weaker Philippine and Eurozone inflation releases for September 2019 might support views of further monetary policy easing from various central banks.”

“The decline in yields, however, might be capped by likely stronger US labor reports and market optimism ahead of the scheduled trade talks between the US and China on Oct. 10.”

Keep calm and worry no more with Hyundai’s 5×5 promo

AS THE FAMOUS SONG by Bobby McFerrin goes, “In every life we have some trouble. But when you worry, you make it double.”

Everyone dreams of owning a car yet buying one can be a bit of a challenge. Maintaining a car in the long run also becomes an issue since it might cost you a lot.

Don’t worry. Hyundai’s got a plan for you.

Hyundai Asia Resources, Inc., the official distributor of Hyundai passenger cars and commercial vehicles in the Philippines, once again pushes the limits in giving customers the best motoring experience possible by bringing you the exclusive and limited “5×5” Special Service Promo! “5×5” offers a worry-free ownership experience so you can drive more confidently and comfortably.

Get an extra 5-year free Preventive Maintenance Service (PMS) when you buy a Tucson, Santa Fe, or Grand Starex on top of Hyundai’s groundbreaking 5-year unlimited mileage warranty coverage.

Hyundai’s industry-first 5-Year Unlimited Mileage Warranty program covers all Hyundai cars bought from an authorized Hyundai dealer from Dec. 1, 2015 onwards. With “5×5”, you are entitled to an extra 5 years of free Basic PMS inclusive of free labor and free Hyundai Genuine Parts, oils, and lubricants. Promo runs from Sept. 23 to Nov. 30.

Experience the phenomenal performance of the Hyundai Tucson’s mix of powerful 2.0-liter fuel-efficient CRDi engine and tough but light Advanced High Strength Steel (AHSS).

With the Hyundai Santa Fe’s monocoque body, riding comfort will never be compromised on any kind of terrain.

The well-loved Hyundai Grand Starex gives you more reasons to love it by offering you, your family, and your businesses the best options for getting around.

Hyundai Philippines has been known for its superior after-sales services with its focus on customer convenience, efficiency, and service excellence. Hyundai uses Genuine Parts for car roadworthiness and genuine peace of mind for customers. Hyundai Genuine Parts comply with the global quality standards of Hyundai Motor Company to guarantee safety and long-lasting performance.

SEC approves ACE Tacloban’s P1-billion IPO

ALLIED CARE Experts Medical Center-Tacloban, Inc. (ACE Tacloban) can now proceed with its plan to raise up to P1 billion in an initial public offering (IPO), after obtaining clearance from the Securities and Exchange Commission (SEC).

In a statement issued over the weekend, the country’s corporate regulator said it approved the company’s registration statement during its en banc meeting on Sept. 26.

ACE Tacloban will be offering 36,000 common shares worth P200,000 to P400,000 for every block of 10 shares. The issuance will be done in four tranches, with the shares to be traded over the counter.

The company is targeting medical specialists and individuals related to the field of medicine to participate in the offer. It will also require physicians and medical specialists who will practice in the hospital to subscribe to the offering.

Physicians who want to hold clinic at ACE Tacloban must pay a “Privilege to Practice” fee of P150,000. They will then be part of the hospital’s active staff, as well as the rotation of house and walk-in cases.

Those who will not pay the one-time fee will be members of the visiting staff. While they can admit patients, such physicians will not be allowed to hold clinic in the facility. They will likewise be excluded from the rotation of house and walk-in cases.

However, these stockholders must first undergo a screening process and possess the minimum requirements as stated in the company’s articles of incorporation, bylaws, and internal rules.

At the same time, stockholders will have access to benefits and privileges such as discounts on medical and dental services. The principal investors may extend these benefits to their spouse, dependents, and natural parents in other affiliates of the ACE Group of Hospitals.

Funds raised from the IPO is expected to reach P987.88 million, which will be used for loan payments, medical equipment, working capital, construction, furniture and fixtures, pre-operating expenses, and professional fees of architects and other professionals.

The company is currently building the 10-storey ACE Medical Center-Tacloban in Barangay 78, Marasbaras, Tacloban City. The 152-bed hospital is scheduled to be completed in October.

Other firms under the ACE Group of Hospitals have also applied for an IPO to support the construction of their respective facilities. The SEC earlier cleared the fund-raising activities of ACE Malolos Doctors, ACE Medical Center-Butuan, ACE Dumaguete Doctors, ACE Medical Center-Gensan and ACE Medical Center- Bohol for P1 billion each.

The IPO of ACE Medical Center-Iloilo has also been approved by the SEC, allowing it to raise up to P1.44 billion.

The ACE Group of Hospitals is composed of around 30 medical centers, with five operational facilities in Valenzuela, Baliwag, Pateros, and Quezon City, according to its website. — Arra B. Francia

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