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Seven-year bonds may fetch lower yields

SEVEN-YEAR Treasury bonds (T-bond) on offer on Tuesday are seen to fetch slightly lower rates on bets of fresh monetary easing by the central bank later this month and ahead of initial trade talks between the United States and China.

The Bureau of the Treasury will be offering P20 billion worth of reissued seven-year T-bonds tomorrow with a remaining life of six years and five months.

Two traders interviewed said the bonds’ yields may fall within the 4.3% to 4.4% range, lower than yields seen during the previous auction.

“Yields have been going up, especially on the long end. Traders remain cautious due to a lack of strong catalysts to drive the market. Now, most of the traders are waiting on RRR (reserve requirement ratio) cut or potential cut on monetary policy [rates] (by the Bangko Sentral ng Pilipinas),” a bond trader said by phone on Friday.

Amalgamated Investment Bancorporation fixed-income peso trader Rocky A. Bautista said improvements overseas have driven rates higher, with players locking in gains as yields on US government securities rose as the US and China said they will hold fresh trade talks in October.

“We can still expect strong demand in this coming auction as domestic liquidity is very much still there,” Mr. Bautista said.

The Treasury raised P20 billion via the reissued seven-year T-bonds it auctioned off on July 16 as the offer was more than thrice oversubscribed, with total bids reaching P74.94 billion.

The bonds, which carry a coupon of 6.25%, fetched an average rate of 4.845%, 89.8 basis points (bps) lower than the 5.743% rate logged on May 15.

At the secondary market on Friday, the seven-year papers were quoted at 4.459%, according to the PHP Bloomberg Valuation Service Reference Rates.

BSP Governor Benjamin E. Diokno has hinted on further cuts to benchmark rates and big banks’ RRR within the year.

The central bank has cut benchmark interest rates by a total of 50 bps so far this year — by 25 bps each on May 9 and Aug. 8 — to 4.25% for the overnight reverse repurchase rate, 4.75% for overnight lending and 3.75% for overnight deposit, partially dialling back the 175-bp cumulative hikes triggered last year by successive multi-year high inflation that peaked at a nine-year high.

Headline inflation slowed to 1.7% in August from 2.4% in July and 6.4% in August 2018, the Philippine Statistics Authority reported on Thursday.

The August reading matched the 1.7% logged in September 2016 and was the slowest in three years or since the 1.3% inflation rate posted in August 2016. Last month’s inflation also fell at the midpoint of the BSP’s 1.3%-2.1% forecast.

Year to date, headline inflation is at three percent, well within the BSP’s 2-4% target range for 2019, albeit still above the central bank’s 2.6% forecast for the entire year.

Mr. Diokno said following the release of data on Thursday that the BSP will take the August inflation print into consideration when the Monetary Board holds its policy meeting on Sept. 26.

On the other hand, banks’ reserve ratios now stand at 16% for big banks and six percent for thrift banks after the phased 200-bp cut implemented after an off-cycle meeting last May. The RRR of rural and cooperative lenders was also cut to four percent from five percent effective May 31.

Reductions to lenders’ reserve ratios were estimated to have released some P200 billion of liquidity into the system.

Mr. Diokno has said he is committed to trim big bans’ RRR to a single-digit rate before his term ends in 2023.

Meanwhile, deputies from the US and China trade teams will talk in mid-September to prepare for negotiations between US Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin, and China’s Vice Premier Liu He in early October. Both sides agreed to take actions to create favorable conditions, but gave no details.

Neither side has signaled it would shift from positions that led to the impasse in May, when Beijing revised a draft of the trade deal, removing references to changes in Chinese law.

US officials have previously said that the resumption of talks would depend on China returning to the original May deal text, but there has been no sign that China has agreed to take that step.

The government is set to borrow P230 billion from the domestic market this quarter through T-bills and Treasury bonds.

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. — B.M. Laforga with Reuters

Warehouse Receipts Law amendment to allow use of crops as collateral

A MEASURE proposing to allow farmers to use their crops as collateral for bank loans has been filed in the Senate.

Under Senate Bill No. 632, Senator Francis N. Pangilinan sought to update Act No. 2137, or the 107-year-old “Warehouse Receipts Law.”

“The law, as it stands, does not allow farmers to use their crops as collateralize for taking a loan because banks are not able to verify the quantity and quality of crops by virtue of the existing warehouse receipts,” Mr. Pangilinan said in a statement Sunday.

“This, among other modern and technological advances for transparency and efficiency, needs to be accounted for. Hence, we are pushing for this measure.”

The bill among others provides for the creation of an online warehouse receipts registry to serve as a database of warehouse receipts, warehouse operators, and warehouses.

The bill noted that warehouse receipts, issued by accredited operators, serve as evidence of “title over goods stored at a warehouse.”

“This will be an instrument of transparency that will allow the public, banks, and other financial institutions to access relevant data for validation. Warehouse receipts can serve as evidence and farmers will now have a way to credibly prove their harvest thereby allowing them to secure loans,” Mr. Pangilinan said.

The bill also provided for the establishment of a seven-member Warehouse Accreditation Council and a warehouse receipts assurance fund.

The Council is to be led by the Chair of the Security and Exchange Commission, and will include the Secretaries of Trade and Industry, Finance, and Agriculture. The other three members will represent the warehouse industry.

Meanwhile, the proposed warehouse receipts assurance fund will be established to shoulder losses involving warehouse receipts caused by registry-based failures. The funding will be partially sourced from one-fourth of 1% of the assessed value of the goods covered by the warehouse receipt.

“While this measure will also benefit other industries, we certainly hope that it will further improve the agriculture sector. We hope that farmers will be given more financing options to help improve their yield or for other emergency purposes. We reiterate that progress in the agriculture sector must be measured in the improvement in the lives of farmers,” Pangilinan said.

“We must do everything within our power to empower the farmer,” he said. — Charmaine A. Tadalan

Nickel Asia’s stock price soars on earnings prospects following Indonesia’s nickel export ban

By Lourdes O. Pilar
Researcher

INVESTORS took positions on Nickel Asia Corp. following the news of Indonesia’s ban on nickel exports, in which the company is seen to benefit in increase ore production in order to supply the market demand.

A total of P3.063 billion worth of 706.93 million shares were traded from Sept. 2-6, data from the Philippine Stock Exchange (PSE) showed. This made Nickel Asia the most active stock last week.

Shares closed at P4.32 apiece on Friday, up 57.7% week on week from the P2.74 finish on Aug. 30. For the year, the stock has gained 94.6%.

“The stock drew attention following a reported plan of the Indonesian government to impose a ban on its nickel exports next year, which will give a squeeze to supply. [Nickel Asia] is one of the largest nickel miners in the country,” said Philstocks Financial, Inc. Research Head Justino B. Calaycay, Jr. in an e-mail.

Unicapital Securities, Inc. technical analyst Cristopher Adrian T. San Pedro also said that traders and investors bought Nickel Asia shares on the news of Indonesia’s ban on nickel exports, which could “lead to the shortage of minerals and nickel price surge in the global market.”

In addition, Mr. San Pedro noted the possible closure of a plant owned by Metallurgical Corp. of China (MCC) that spilled mine waste into Papua New Guinea’s Basamuk bay.

“[The news of the possible closure] is getting the local and foreign investors to become excited as they pick the Philippines as the next alternative for the source global nickel demand,” Mr. San Pedro said in a separate e-mail.

A nickel processing plant owned by Metallurgical Corp. of China, a unit of China Minmetals, is facing the threat of closure following reports of the plant’s waste spilling into the Basamuk Bay in Papua New Guinea, according to a report by Reuters.

Meanwhile, Indonesia announced last Monday that they would stop nickel ore exports starting Jan. 1, 2020, which is two years earlier than earlier announced, in an effort to produce its own resources at home.

The move is seen to increase nickel production in the Philippines. The country is the world’s second-biggest supplier, estimated to account for a fifth of the global mined nickel supply only next to Indonesia. Of this, Nickel Asia accounts for about half of the Philippines’ nickel ore output.

Nickel Asia reported an attributable income of P566.11 million in the second quarter, 39.4% lower than P934.28 million in the same period in 2018. For the first half, attributable income is P713.75 million, 48.7% than P1.39 billion in 2018’s comparable six months.

“Numbers have been relatively flat to negative for [Nickel Asia], and if the ban does come around, we may see an improvement in its numbers going forward,” Philstocks’ Mr. Calaycay said.

However, he cautioned that this “knee-jerk” reaction in its share price “may need something more concrete than this news to keep it moving higher.”

For Unicapital’s Mr. San Pedro: “The stock is a potential trend reversal candidate as we head towards the fourth quarter. Support is expected at P4.00 and P4.11 while resistance is at P4.69 and P5.10.”

“I expect the stock to remain bullish with a target of P5.74 and P6.00 for as long as it holds above P4.00 in the short term,” he added.

Toyota Vios Racing Festival banners heart-racing action

By Argie C. Aguja

INSTEAD of dampening the mood, intermittent rain showers intensified the waku-doki spirit of racers from different classes and participating teams as they sped their way through the tracks of the Clark International Speedway during the third leg of the Toyota Vios Racing Festival last Aug. 31.

At the end of race day, more than 20 racers successfully made it to the winner’s podium after competing at the second round of the Vios Circuit Championship and the third round of the Vios Autocross Challenge, both organized by Toyota Motor Philippines (TMP).

Celebrity contender Troy Montero clinched two first-place victories at the Circuit Challenge Celebrity Class, but unfortunately, had to drop out of Race 6 after an unexpected crash with fellow Sporting Class racer John Dizon, right after crossing the finish line for Race 5. Daniel Matsunaga took the top spot of the Celebrity Class for Race 6.

Aside from Montero’s incident, celebrity racer Chie Filomeno failed to finish the final race as she slid off-track due to aquaplaning.

Both celebrities were quickly brought to the hospital for checkups, and were cleared to be back at the venue in time for the awarding ceremonies.

“No matter what happens, I still find myself coming back to this sport. The adrenaline rush it gives me is out of this world,” Filomeno said in a post-race Instagram post.

“Despite the outside damage, the driver’s area was totally untouched. We also have a roll cage, race suit, and helmet, and most especially the HANS (head and neck) device to keep us safe,” Montero explained on his own Instagram account.

In the Circuit Challenge’s Sporting Class, Red Diwa of JBT Racing-Toyota Isabela won Race 4 while Eggy Ong of JBT Racing-Toyota San Fernando managed to keep the first place title in both Races 5 and 6.

In the Promotional Class, Julian Tang of Toyota Otis Obengers took the victory in Race 4 while one of the only two female racers in this class, Elysse Menorca of Toyota North EDSA Obenger, won Races 5 and 6.

During the Autocross event, Carlos Inigo Anton triumphed in the Car Clubs category; AutoIndustriya’s Jose Luis Altoveros led the Media Category; while Jules Aquino took the top spot in the Social Media Personalities category.

“On behalf of Toyota Motor Philippines, I would like to express my deepest appreciation to our customers and fans who have dedicated time and effort to witness our Vios motorsports events,” said TMP President Satoru Suzuki during the race’s opening ceremonies attended by the race participants and spectators.

For six years now, TMP has been organizing Vios motorsport events in the country and added the Autocross Challenge, transforming the annual Vios Cup into a more inclusive and accessible Vios Racing Festival.

The next and final leg of the Vios Racing Festival is scheduled on Nov. 9, still at the Clark international Speedway. The final races will determine the overall winners of this season’s Circuit and Autocross competitions. The Vios Racing Festival is supported by TMP’s partners and sponsors Bridgestone, Petron, Motul, Rota, Brembo, Denso, AVT, 3M, OMP, and Tuason Racing.

Below is the complete list of the podium finishers from last weekend’s races:

All things beauty at Rustan’s

RUSTAN’S The Beauty Source launches the month-long Beauty Addict 2019: the GLOW Beauty and Beats Festival at Rustan’s Makati.

Shoppers can avail of discounts on various skincare, haircare, fragrance, and makeup brands such as Chanel, Clarins, Neal’s Yard Remedies, Perricone, Murad, Sisley, L’Occitane, Jane Iredale, and Stila, during the entire September.

In line with the seventh iteration of the beauty festival, different promos are mounted per week: this week, Sept. 9 to 15, “Come On, Skin Love” offers up to 20% off on skincare brands; “Glowed Up” on Sept. 16 to 22 offers promos on makeup; and “Bath, Body & Soul” on Sept. 23 to 30 on bath and body brands.

Patrons of brands under the Rustan’s The Beauty Source may avail of the Beauty Addict membership — customers can shops for products worth P2,500 then apply for the card for free.

THERE IS AN APP FOR THAT
Rustan’s also launched the Beauty Addict mobile app. Shoppers can update or download the Rustan’s FSP app on Google Play or the App Store which allows access to various brands.

“Rustan’s pride is in being a luxury retailer for beauty, carrying most of the luxury brands,” Jackie R. Avecilla, Marketing and Communications Manager of the Rustan’s Cosmetics, Perfumery, and Toiletries Division, told BusinessWorld during the launch at Rustan’s Makati on Sept. 5.

“With technology coming in, we have information readily available. So we get to inform our customers faster about the new brands that we have here, the latest collections and latest promotions through social media or any digital platform,” she said.

For more information, visit bit.ly/RustansBeautyAddictGlow. — Michelle Anne P. Soliman

Bank of Japan’s Kuroda says deepening negative rates is among options — Nikkei

TOKYO — Bank of Japan (BoJ) Governor Haruhiko Kuroda said cutting interest rates further into negative territory is among the bank’s policy options, according to an interview with the Nikkei newspaper published on Friday.

But he stressed that if it were to ease, the BoJ must take into account the impact such a move could have on Japan’s banking system and financial market functions.

“There are various things we can do, such as combining various tools or enhancing them,” Mr. Kuroda said on what the BoJ could do if it were to ease again.

Cutting rates “further into the negative zone is always an option,” the newspaper quoted him as saying in the interview, held on Thursday.

Mr. Kuroda said while Japan’s economy was sustaining momentum to achieve the BoJ’s 2% inflation target, risks surrounding the overseas economy were heightening.

“We can’t rule out the possibility that conditions will deteriorate further, so we need to be vigilant mainly on developments in US-China trade tensions,” he said, suggesting that overseas developments will key to the BoJ’s decision on whether and how quickly it could expand stimulus.

Markets are rife with speculation the BoJ could ease policy as early as this month to fend off an unwelcome yen spike that could be caused by expected monetary easing steps by the US Federal Reserve and the European Central Bank.

But some BoJ policy makers are wary of ramping up stimulus due to the rising cost of prolonged easing, such as the strain years of ultra-low rates are inflicting on commercial banks.

BoJ board member Hitoshi Suzuki, a former commercial banker, said earlier he did not see the need to ease more as further falls in rates could do more harm than good.

Mr. Kuroda said life insurers and pension funds have seen the return on their investments decline significantly due to falling long-term yields, which could hurt consumer sentiment.

“Yields on super-long government bonds with maturities of 20 or 30 years have fallen a bit too far,” he said. “If necessary, the BoJ could review the volume and methods of its market operations” to address excessive declines in yields, he added.

Robust household spending and capital expenditure have partly offset pressure on Japan’s economy from weak exports this year. It grew 1.8% in the second quarter on an annualized basis.

But the outlook remains murky as the Sino-US trade dispute intensifies, and as domestic consumption is expected to slow after a sales tax hike in October.

The BoJ said in July it will ease “without hesitation” to fend off any risks to the economic recovery, heightening market expectations of near-term monetary easing.

The central bank has said it had four options if it were to ease — deepening negative rates, cutting its long-term rate target, increasing risky asset buying and accelerating the pace of money printing.

Some analysts have said the BoJ will not opt for deeper negative rates due to strong resistance from the banking sector and the public backlash it triggered in introducing minus rates in 2016.

“If were to ease further, we will take the most appropriate step by looking at the pros, cons and side-effects such as whether the measure won’t hurt financial intermediation and market functions,” Mr. Kuroda said.

Under a policy dubbed yield curve control, the BoJ guides short-term rates at -0.1% and the 10-year government bond yield around 0%.

On recent declines in long-term yields, Mr. Kuroda said the BoJ won’t forcefully try to bring up yields when they are driven by market forces.

But he said there are limits to how much the BoJ will allow yields to deviate from the 0% target, stressing that it will intervene to keep falling yields in check if necessary. — Reuters

House bill seeks to promote bamboo plantations, product research

A BILL has been filed at the House of Representatives seeking to encourage the adoption of plantation production of bamboo, as well as research and development to promote its wider use.

House Deputy Majority Leader and Las Piñas City Rep. Camille A. Villar filed House Bill 3309, which if passed will become the Philippine Bamboo Industry Development Act of 2019.

The bill hopes to set up the Bamboo Industry Research and Development Center (BIRDC) “tasked to continuously provide relevant technologies and new products to the bamboo industry.”

The measure requires that bamboo represent 20% of the annual planting of the national greening program a reforestation initiative. It also calls for 25% bamboo content in desks and chairs used by public schools.

Ms. Villar noted that the main challenge in the development of a bamboo industry is a shortage of land.

“There are about 8,500 hectares devoted to bamboo cultivation, with four economically viable species — the Kawayan Tinik, Giant Bamboo, Buho, and Bolo. According to the DTI (Department of Trade and Industry), while 8,500 hectares is a significant number, the huge demand for bamboo requires more coverage,” said Ms. Villar said in a statement Sunday.

The measure requires the BIRDC to promote the establishment of bamboo nurseries, plantations, and processing facilities; and promote the commercialization and market access of the “appropriate innovative and viable” bamboo industry products.

The BIRDC is also expected to provide capacity-building initiatives for farmers, processors, designers, and other stakeholders in the bamboo industry.

“Nursery and plantation owners shall be exempt from the payment of rent for the use of public lands for commercial bamboo plantation for the first 10-years or when the plantation owner starts to harvest his/her nursery/plantation subject to existing tenurial agreement with concerned government agencies,” according to the bill.

“Plantation owners in public lands shall be exempt from the payment of forest charges imposed by national government and other fees or taxes imposed by local government units.”

It added, “Plantation owners, including nursery facilities, bamboo processing, and other related businesses shall be exempt from the payment of import duties for imported machines and equipment subject to pertinent rules and regulations.”

If signed into law, the bill directs the Office of the President through the Philippine Amusement and Gaming Corp. to allocate P100 million to start-up the trust fund. — Vince Angelo C. Ferreras

TLDC-Dusit to build Princess hotel as its 4th Davao project

DAVAO CITY — Torre Lorenzo Development Corp. (TLDC) and Dusit International are embarking on their fourth project in the Davao Region, a Dusit Princess hotel in the city.

The Princess hotel, Dusit’s upper mid-scale brand, will be located in the same complex where the Dusit D2 Davao and the Dusit Thani Residences are located.

“We will break ground on that soon,” Christopher Wichlan, general manager of the Davao Dusit hotels, said in an interview at The Beach Club at Lubi Plantation, the third property under the TLDC-Dusit partnership.

TLDC President and Chief Executive Officer Tomas P. Lorenzo, in a press briefing Friday before the grand launch of Dusit D2, said the Davao City complex is planned to be a bigger mixed-use development which will be named Tierra Lorenzo Davao.

“This is only one-third of what we’re doing here. We’re putting office buildings, followed by a retail area and an esplanade,” Mr. Lorenzo said.

“This is an anchor, this hotel (Dusit D2) is the anchor to a bigger development in Davao,” he added.

Mr. Lorenzo declined to give the projected investment needed for the project, which would include the acquisition of surrounding properties, with some already settled and others under negotiation.

“In another year, it will be a different landscape,” Mr. Wichlan said.

In April, TLDC Chief Finance Officer Noel A. Rapadas said they have allocated P3 billion for capital expenditures this year to support projects that have been lined up.

Meanwhile, The Beach Club at Lubi Plantation, located on a private island in nearby Compostela Valley province, is currently on soft opening for day trips and with several of the initial 18 villas ready for occupancy.

The other facilities open are a pool, restaurant, function area, spa, and indoor game center, while a chapel for wedding ceremonies and dive shop are expected to be completed within the next six weeks.

“Soon as we have the other core elements, we’ll rebrand, probably before Christmas, to Dusit Thani at Lubi Plantation Resort. That’s the masterplan,” Mr. Wichlan said.

The next phase of the Lubi development would include the construction of 22 more villas, a Dusit Devarano Spa, a Benjarong and western cuisine restaurants, and another pool exclusive to staying guests, among others.

Dusit International Chief Operating Officer Lim Boon Kwee said their Davao operations, which was their first venture with TLDC, is the only one in their global network that combines urban and island resorts.

“This is very unique for us,” he told BusinessWorld on the catamaran ride from the Davao City complex to Lubi Plantation.

Mr. Lim said Dusit Thani Public Company Ltd., the Bangkok-based firm behind Dusit International, sees their partnership with TLDC as a “long-term relationship.”

TLDC and Dusit have also teamed up for the Tierra Lorenzo Lipa project in Batangas, which will have residential buildings and a Dusit Princess Hotel.

“As a company, it’s not just a transaction for us… we see it as a relationship and a journey,” he said. — Marifi S. Jara

10 millionth MINI rolls off the line

OXFORD — MINI fans all over the world have a variety of opportunities to look back on the 60 years of history enjoyed by the British brand over these weeks and months. Now there is another reason to celebrate: The ten millionth vehicle of the heritage brand was produced at the British MINI Plant Oxford where the classic Mini was manufactured from 1959 onwards.

The anniversary vehicle rolling off the production line was a model of the MINI 60 Years Edition — and it then came face to face with the brand’s first small car ever manufactured. The classic Mini from 1959 and the Edition model from the year 2019 then joined forces with 60 other vehicles of the brand — each of them from one of the production years. They all took part in a road trip traveling to Bristol in convoy, where thousands of fans celebrated the world’s biggest birthday party for the British original at the International Mini Meeting held last August.

The production anniversary to celebrate 60 years of the brand’s existence bears witness to the uninterrupted popularity of MINI in the 21st century. In 1959, the genius who designed the classic Mini, Alec Issigonis, laid down a definitive milestone in automobile history. The vehicle concept with the engine mounted transversely at the front of the car along with the gearbox configured beneath the engine, and the wheels positioned at the corners of the car together with a tailgate body provided maximum interior space on a minimum footprint. The design also ensured amazingly agile driving characteristics and it became the blueprint for modern small and compact cars. Around 5.3 million units of the classic Mini were sold worldwide up until the year 2000.

Just one year later, the global success story of the brand was continued. Since the relaunch of this marque, MINI is the original in the premium segment of small cars. The reinterpretation of the inimitable design, the unsurpassed driving fun that is unique in the competitive environment and the individual style of the brand are not simply generating enthusiasm in the class of small cars. These characteristic qualities are empowering MINI to continuously acquire new target groups in the premium compact segment.

And the next stage is about to be launched. In November 2019, production of the all-electric powered MINI Cooper SE will commence — also in Oxford. In future, this will also make electromobility a typical MINI experience full of driving fun and individuality.

Last year, almost 400,000 MINIs were sold in 110 countries. This means that the sales figures for the modern MINI are following hot on the heels of its historic predecessor. The models MINI 3-door, MINI 5-door and MINI Clubman are currently being produced at the MINI Plant Oxford. Up to 1,000 MINIs are manufactured there every day. The MINI Convertible and the MINI Countryman roll off the assembly line at MINI’s Dutch production partner, VDL NedCar.

“Seeing the 10 millionth vehicle of our brand come off the production line here in Oxford was a moment of pride for all the employees. Some of them have family members who were already producing the classic Mini at this site,” explained Peter Weber, head of the MINI Plant Oxford. “This is a wonderful chapter in the history of MINI and proof of the passion that our customers have for this very special British motor car.”

In the run-up to the production anniversary, MINI put posts on social media asking the brand’s British community to share their personal stories from 60 years of MINI with other fans. The huge response made it possible to bring together characteristic vehicles from each production year between 1959 and 2019 as the showpiece for the anniversary celebration at the MINI Plant Oxford.

The highlight of this exceptional coalescence was the joint outing to the International Mini Meeting in Bristol. The first classic Mini ever built drove at the head of the convoy. It bears the registration 621 AOK well known among MINI fans and the car was followed in chronological order by protagonists from 60 years with the 10 millionth vehicle of the brand bringing up in the rear of the impressive anniversary procession.

Peso likely to move sideways ahead of US economic reports

THE PESO could move sideways this week ahead of more data releases in the United States.

On Friday, the local unit closed at P51.905 versus the greenback, 10.5 centavos stronger than its Thursday close of P52.01, data from the Bankers Association of the Philippines (BAP) revealed.

On a week-on-week basis, the peso strengthened by 14 centavos from its P52.05-to-a-dollar close on Aug. 30.

“General market perception may have also been a factor due to positive US economic data recently released,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

“Expect the peso this week to move within P51.70 to P52.00 as the market expects more positive signs from the US economic data releases,” Mr. Asuncion added.

The US manufacturing sector contracted in August for the first time since 2016 amid worries about a weakening global economy and rising trade tensions between China and the US, an industry report released last Tuesday showed.

The Institute for Supply Management (ISM) said its index of national factory activity decreased to 49.1, the lowest level since January 2016.

This compared with a figure of 51.2 in July. Analysts polled by Reuters had forecast a reading of 51.1 for August.

Meanwhile, US services sector activity accelerated in August and private employers boosted hiring, suggesting the economy continued to grow at a moderate pace despite trade tensions which have stoked financial market fears of a recession.

The Institute for Supply Management (ISM) said its non-manufacturing activity index increased to a reading of 56.4 in August from 53.7 in July. A reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of US economic activity.

Economists polled by Reuters had forecast the index would rise to 54.0 in August. The ISM said businesses “remain concerned about tariffs and geopolitical uncertainty,” but also noted “they are mostly positive about business conditions.”

On the other hand, US job growth slowed more than expected in August, with retail hiring declining for a seventh straight month, but strong wage gains should support consumer spending and keep the economy expanding moderately amid rising threats from trade tensions.

The US Labor department’s closely watched monthly employment report on Friday also showed a rebound in the workweek after it shrunk to its shortest in nearly two years in July, suggesting that companies were not yet laying off workers.

Non-farm payrolls increased by 130,000 jobs last month, flattered by temporary hiring of 25,000 workers for the 2020 census. The economy created 20,000 fewer jobs in June and July than previously reported. Economists polled by Reuters had forecast payrolls rising by 158,000 jobs in August.

More US data are dye for release this week such as the August producer price index report, data on wholesale inventories, jobless claims, retail sales, as well as the August consumer price index. — with Reuters

Fashion photographer Peter Lindbergh, 74

BERLIN — German fashion photographer Peter Lindbergh, credited with inventing the concept of the supermodel in the 1980s, has died aged 74, a message on his Instagram account said last Wednesday.

Born in 1944 in German-occupied Poland, he is seen as the creator of a style of naturalistic fashion photography which showed women without heavy make-up and is known for famous images of Cindy Crawford, Naomi Campbell and Christy Turlington.

German daily Bild quoted him as having told the newspaper in May: “Nothing is more beautiful than photographing the women you love. I was really in love with each of my supermodels.”

Oscar-winning actor Charlize Theron described him as a genius and a master of his craft.

“Beyond that, what made him truly one of a kind was his consistent kindness, warmth, and incredible sense of humor,” she tweeted.

Mr. Lindbergh recently shot pictures of women for the “Forces for Change” issue of British Vogue magazine that Meghan, wife of Britain’s Prince Harry, guest edited. The women he photographed included actress Jane Fonda, climate activist Greta Thunberg, and New Zealand Prime Minister Jacinda Arden.

He also shot three editions of the Pirelli calendar.

“He was a master, a protagonist of the history of photography and also of the Pirelli Calendar,” said Marco Tronchetti Provera, Executive Vice-Chairman and CEO of Pirelli.

Mr. Lindbergh, known for his cinematic approach, made an appearance at the Berlin Film Festival in February for a documentary about him called Women’s Stories.

The Instagram message said the photographer, who also directed films and documentaries, had died on Sept. 3. It gave no further details, saying only he was survived by his wife Petra, his first wife Astrid, four sons and seven grandchildren.

“He leaves a big void,” it said.

Supermodel Linda Evangelista wrote: “Heartbroken. R.I.P. my Peet.”

Mr. Lindbergh grew up in the Ruhr area of western Germany before studying at the Berlin Academy of Fine Arts in the 1960s.

On his website he said he was inspired by Vincent van Gogh and, like the Dutch artist, lived in Arles in France as a young man before travelling through Spain and northern Africa.

In the 1970s he turned to photography and pioneered a form that became known as “New Realism” which rejected retouching.

“This should be the responsibility of photographers today to free women, and finally everyone, from the terror of youth and perfection,” he is quoted as saying on his website. — Reuters

Cacao the focus of third Startup Weekend Women

DAVAO CITY — A conference for female entrepreneurs is focusing on identifying and addressing gaps in the production of cacao and its by-products with the aid of technology.

The Startup Weekend Women, now on its third staging, will hold on Sept. 20–22 while pre-event “ideation” session is set for Sept. 9.

Mary Rose P. Ofianga, coordinator of the University of Southeastern Philippines-Advancing Great Ideas Lab Technology Based-Incubator and among the organizers, said cacao is considered “one of the hottest fields of agriculture.”

Apart from the female participants, industry stakeholders will also be attending to discuss challenges “while innovators conceptualize innovative business models to solve these challenges,” she said.

Ms. Ofianga also noted that there is a lot of opportunity for women in the cacao sector considering that micro, small and medium enterprises in the city have been thriving and winning awards for their products.

Lizabel G. Holganza, founding member of the Cacao City Marketing Cooperative and former president of Information and Communications Technology-Davao, said there is a need to integrate technology into the industry.

“We need to tap modern technology both in marketing and in production to ensure that we can maximize production of our farms as well as access the best prices for our produce,” Ms. Holganza told BusinessWorld.

Agriculture Secretary William D. Dar, in a recent visit to Davao, said his department will also be helping expand cacao production in the region.

He said, “We (will) look for some potential areas where we can expand the cacao industry because the market is open.” — Carmelito Q. Francisco

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