Analysts’ August Inflation Rate Estimates
THE GENERAL INCREASE in prices of goods and services used by average Filipinos is expected to have cooled further last month amid slowing food prices as well as base effects. Read the full story.
THE GENERAL INCREASE in prices of goods and services used by average Filipinos is expected to have cooled further last month amid slowing food prices as well as base effects. Read the full story.
TREASURY BILLS (T-bill) on offer today are expected to fetch slightly lower rates following dovish remarks by the central bank.
The Bureau of the Treasury is offering P15 billion worth of Treasury bills today, broken down into P4 billion, P5 billion, P6 billion for the three- and six-month and one-year debt papers, respectively.
A bond trader said the short-term securities may fetch “slightly lower” yields today.
“91[-day] T-bill kasi, it’s already below the policy rate ng BSP (Bangko Sentral ng Pilipinas). It’s basically nagpa-park na ng funds ‘yung investors. We’re concerned na because the BSP already hinted on a cut by the end of this year (The 91-day T-bill’s rate is already below the BSP’s policy rate. Basically, investors are parking their funds while rates are still relatively high since we’re already concerned because the BSP already hinted on a cut by the end of this year,” a bond trader said over the phone on Friday.
Meanwhile, another bond trader said in a phone interview that T-bill rates will likely move sideways as the market still look for “new catalyst both locally and offshore.”
The government fully awarded the T-bills it offered last Aug. 19 as rates declined across all tenors on the back of dovish remarks from central bank officials here and abroad and strong liquidity.
The Treasury made a full award of T-bills worth P15 billion at that auction as its offer was more than thrice oversubscribed, with tenders totalling P45.8 billion.
Broken down, the government raised P4 billion as planned via the 92-day T-bill, with tenders reaching P10.76 billion. The tenor’s average rate dropped to 3.254% yesterday, 14.4 basis points (bp) lower than the 3.398% fetched during the Aug. 6 offering.
For the 183-day debt papers, the Treasury fully awarded P5 billion as programmed out of bids worth P14.11 billion. The average yield declined 20.6 bps to 3.471% from the previous offer’s 3.677%.
The government also raised P6 billion as planned via the 365-day T-bills, with tenders amounting to P20.885 billion. The one-year tenor’s average rate declined 26.2 bps to 3.636% from the 3.898% logged during the previous T-bill offering.
The T-bill tenors were adjusted due to the advance settlement date of Aug. 20, with Aug. 21 being a non-working holiday.
At the secondary market last Friday, the three-month, six-month and one-year T-bills were quoted at 3.319%, 3.518% and 3.687%, respectively, based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.
Meanwhile, Bangko Sentral ng Pilipinas (BSP) chief Benjamin E. Diokno last week said the central bank is looking at cutting benchmark interest rates by another 25 bps before the end of the year.
The central bank has cut benchmark interest rates by a total of 50 bps so far this year — by 25 bp 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 dialing back the 175-bp cumulative hikes triggered last year by successive multi-year high inflation that peaked at a nine-year high.
Meanwhile, Mr. Diokno earlier said another cut in big banks’ reserve requirement ratio (RRR) could happen anytime towards the next policy review on Sept. 26 — the sixth for the year. He had said that the Monetary Board’s consensus is to “pre-announce” plans for the RRR on a quarterly basis.
The RRR now stands 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 reserve ratios of rural and cooperative lenders was also cut to four percent from five percent effective May 31.
The central bank chief is committed to bring down the reserve requirement down to single digit when he ends his term in 2023.
The Philippine Statistics Authority will also report August inflation data on Thursday, Sept. 5.
In an e-mail to reporters last Friday, the BSP’s Department of Economic Research said it expects inflation in August to settle within the 1.3-2.1% range due to lower fuel, rice, and power prices. This compares to the 2.4% inflation rate logged in July and 6.4% in August last year.
The lower end of the BSP’s estimate matches the 1.3% print logged in June, July, and August 2016 and will the slowest reading since the 0.9% clip posted in May 2016. Meanwhile, the upper end of the forecast range is equal to November 2016’s 2.1% pace and would be the slowest since October 2016’s 1.8%.
A BusinessWorld poll of 12 economists late last week yielded a median inflation estimate of 1.8% for August, settling above the midpoint of the 1.3-2.1% forecast range provided by the BSP’s Department of Economic Research.
SWITZERLAND is known for its stolid reliability and a scientific approach to living. As one of the world’s richest and most successful nations, the country reflects that perhaps hot-blooded passions don’t always work, and we should all strive for stability and balance.
Victorinox, a Swiss-based manufacturing company that lent its name to the Swiss Army knives it has issued since the late 1800s, recently showed off what else they can do with regards to luggage and watches. An exhibition to celebrate Swiss Month at the Podium that ended late last month showed off the brand’s history, starting out at its founding in 1884 as a cutlery workshop by Karl Elsener. The founder had a vision of generating jobs and preventing the local population from leaving the area. Meanwhile, the Swiss Army had thought it fit to distribute multifunctional knives to its units that could both open cans of food and disassemble their service rifles, which required a screwdriver. The special knives were created by both Victorinox and Wenger under a government contract, until Victorinox acquired its rival in 2005.
The Podium exhibit proved to be a partnership between three Philippine distributors: the Primer Group of Companies showed off the luggage division, Lucerne showed off the brand’s timepieces, and Grimalkin was in charge of showing off the knives.
The knives at the exhibit included the Classic Limited Edition, with 10 available designs created by fans of the brand all over the globe. Blueprints for the Classic Limited Edition were submitted by Victorinox fans via an online crowdsourcing contest. A final vote on the brand’s website awarded the 10 winning designs out of a total of 2,380 submissions. Designers faced the challenge of representing the images on a surface of just 58 mm, the size of the pocket knife. The resulting entries delighted the family-run Swiss company in terms of their variety and creativity, testifying the dedication and imagination of their customers around the globe. What’s more, the countries that participated were as varied as the blueprints received. Chosen designs range from Sardine Can and Banana Split, to the lighted Burger Bar and the elegant When Life Gives You Lemons.
The limited edition of the 10 designs will be tempting collectors while stocks last.
LUGGAGE
Meanwhile, the luggage division showed off the Spectra 2.0 Dual Access Luggage which comes in two new colors, Dark Teal and Beetroot. The line is equipped with an integrated expansion system, allowing for an extra three centimeters with the carry-ons and 11 centimeters with the checked in styles, the latter representing a 47% space gain. Extremely durable, the cases feature a stylish, scratch-resistant finish and protective corner guards as well as ultra-strong, water-resistant, rip-stop expansion, rubberized bumpers and stretch zippers. With smooth-rolling dual-caster wheels and a dual-trolley handle system, the Spectra 2.0 exemplifies performance-focused design at every turn.
WATCHES
The timepieces division, meanwhile, showcased the INOX Mechanical, with a transparent back case showing the mechanism behind it. The guilloche dial is in the style of the Swiss officer’s knife, and a unique touch is its strap crafted from both wood and leather.
Swiss Ambassador Alain Gaschen said about Swiss products, especially by Victorinox: “You can really trust that this will work.”
He mentioned that Switzerland has ranked again as the World’s Most Innovative Country, according to the World Intellectual Property Organization. “We never stop and say ‘that’s it.’ We always have to change and to innovate.”
Mr. Gaschen credits this to the character of the Swiss, saying, “They’re open to change, they’re open to new ideas, they’re open to other countries. We have a very tolerant society — more than 25% of our people in Switzerland are not Swiss.
“The people are open, hardworking, and innovative,” he said — and we guess you can say that about the knives too. — Joseph L. Garcia
STORAGE IS expected to be a bottleneck for the rice industry during the harvest this month due to significant volumes of stock accumulated from the previous harvest, which traders can only sell at a loss because prices have dropped as a result of stiff competition from cheap imports, industry officials said.
“Palagay ko lahat ngayong season na ito, loaded pa rin (I think this season, all warehouses will be loaded.),” Elizabeth Mendoza-Vana, president of the Nueva Ecija Rice Millers Association, told BusinessWorld in a phone interview.
“Naghahanap sila [National Food Authority] ng mga warehouses na uupahan… Dito sa amin sa San Jose (Nueva Ecija), wala pa akong nababalitaan na mgapapa-upa ng warehouse sa kanila. Naghahanap daw sila sa Gapan, Nueva Ecija… parang wala pa silang concrete na plano ngayong harvest season (The NFA is looking for warehouses to rent… Here in San Jose, I haven’t heard of anyone who can rent out warehouses. I heard the NFA is also looking in Gapan, Nueva Ecija… it seems like they do not have a concrete plan yet this harvest season.)” she added.
She noted that Isabela warehouses still have about 30% to 40% of their capacity taken up by palay, or unmilled rice, from the April–May harvest season, while Nueva Ecija still has about 20%.
The government has pushed the NFA to accelerate the sale of its remaining stock of imported rice and purchasing palay from domestic rice farmers, especially now the harvest season is about to start.
During the public hearing on the implementation of the Rice Tariffication Law on Aug. 28, NFA Administrator Judy Carol L. Dansal said that the agency still has 290,000 metric tons (MT) or 4 million bags of imported rice valued at about P6 billion remaining unsold.
In a statement, Ms. Dansal said that the agency has never stopped domestic procurement even with the volume of imported rice it has it its warehouses.
“As we have repeatedly explained, the NFA’s procurement operations are a year-round activity. Our field personnel are always ready to receive palay deliveries from farmers through our more than 300 buying stations strategically located across the country,” Ms. Dansal said.
Ms. Mendoza-Vana said that the NFA has invited rice millers to bid for stocks of imported rice valued at about P1,200 per 50-kilogram (kg) bag as a way of clearing out NFA warehouses.
Ms. Mendoza-Vana said private rice millers are open to buying palay from farmers as long as the grain meets their standards.
“Mayroon akong quality na mine-maintain, so hindi ko pwedeng sabihin na bibilhin ko ‘yung palay mo, gigilingin ko, pero hindi ako sure kung pasado ‘yan sa quality ko. Kaya minsan hesitant din kaming mga private rice millers na makisama (We need to observe a certain quality standard, so I can’t just agree to buy any palay and mill it when I’m not sure it will meet my standards. That’s why private millers are reluctant to participate in any buying initiative)” she said.
“Patuloy pa rin naman kaming bibili sa mga magsasaka, kaya lang nga sa lumalakad na presyo (We will buy from farmers, but at a competitive price),” she added.
Asked to comment, Rosendo O. So, chairman of Samahang Industriya ng Agrikultura (SINAG), said that 80% of rice millers still have old stock.
“Some of them have sold at P17 per kg, so they can buy newly-harvested palay again,” he said, adding that he will set up a meeting with Agriculture Secretary (William D. Dar) and rice millers “because this will be another problem with rice millers unable or unwilling to buy.” — Vincent Mariel P. Galang
NOW ON ITS eighth year in the country, iconic outdoor gear brand JanSport has shored up its offering by partnering with top urban retailers for its Signature Series 2019.
Still in line with its commitment to making durable, functional and versatile products that people can rely on, JanSport has collaborated with Sole Academy, Don’t Blame the Kids (DBTK), and Grind for a limited-edition signature series of packs.
The series features three collections — Right Pack, Waisted, and Fifth Avenue — each showcasing unique embroidered designs that creatively reflect their distinct brand identities.
All three collaborations include Right Pack back packs which have a capacity of 31 liters with dimensions of 46 x 33 x 21 centimeters. It is made of 915 Denier Cordura fabric with a suede leather bottom. The laptop compartment can fit a 13-inch laptop. It is priced at P4,990.
The JanSport x Grind Right Pack comes in three colors (black, blue and red).
There are also belt bags for the DBTK and Grind collaborations. The DBTK collaboration includes the Waisted waist bag for P1,490. The waist bag has a capacity of three liters with dimensions of 14 x 25.5 x 5 cm. It is made of 915 Denier Cordura with suede leather trims.
JanSport’s collaboration with Grind includes both the Waisted belt bag and Fifth Avenue, another belt bag variant. Fifth Avenue (P1,290) has a 2.5-liter capacity and dimensions of 15 x 31 x 10 cm. The fabric used is also 915 Denier Cordura.
JanSport said the Signature Series 2019 is a continuation of its push to connect with the communities it has presence in, coming up with fresh products to keep its standing as the go-to brand of choice for different packs.
The Signature Series 2019 is available in limited quantities in select stores nationwide.
The Sole Academy Collection will be available at its branches in Bonifacio Global City, UP Town Center, Alabang Town Center, Ayala Cebu, Trinoma, and online via Soleacademy.net.
The DBTK Collection can be found at its DBTK Flagship Store, select Bratpack stores (Greenbelt 5, UP Town Center, Robinsons Ermita, Alabang Town Center), and online at DBTKco.com.
The Grind Philippines Collection will be available at its stores in Gateway, Glorietta, Ayala Cebu, Harbor Point, Legazpi, Fairview, KCC Gen San, UP Town Center, Ayala Abreeza and over Grind.com.ph. — Michael Angelo S. Murillo
By Arra B. Francia
Senior Reporter
DOUBLEDRAGON Properties Corp. said it is on track to have 100 malls under its portfolio by 2021, as it moves to secure all lots for the projects within the year.
“We’re still on target to have 100 malls by 2021…We have almost secured all lots, hopefully by end of this year, we’ll secure them,” DoubleDragon Chairman and Chief Executive Officer Edgar J. Sia II told reporters after the company’s annual shareholders’ meeting in Pasay on Friday.
Mr. Sia noted that only the construction of the malls will be completed by then, with operations to start soon after since they may experience delays with tenants.
The listed property developer is set to end the year with 51 malls, from its current network of 39.
“We’ll end this year with 51. So we’ll have to open 12 more. We build the same thing all the time, so it’s faster,” Mr. Sia said.
DoubleDragon’s mall business carries the CityMall brand, which is primarily located in second and third tier cities in the provinces. This aims to meet the demand for malls in provincial areas, while also avoiding competition from more mature players in key cities in the country.
CityMall is 66% owned by DoubleDragon. The remaining 34% is owned by Sy-led SM Investments Corp., which by itself is the country’s largest mall operator with 72 malls in the country and seven in China.
The company is counting on its commercial mall business to help boost recurring revenues by 2021, alongside its three other segments namely office leasing, industrial warehouses, and hotels.
It aims to have 1.2 million square meters (sq.m.)of leasable space across the four segments by 2020, around double its current 603,000 sq.m. This further supports its goal of hitting P10.8 billion in recurring revenues by 2021, after which the company will start declaring cash dividends worth about 30% of their net income to shareholders
This year alone, Mr. Sia said they expect to generate P4 billion in recurring revenues, and is seen to rise to P5.4 billion by 2020.
With more than one million sq.m. of leasable area under its portfolio by next year, the company is also eyeing to place its assets under a real estate investment trust (REIT) once regulators come out with the final rules.
“In the meantime, we’re just building more and maturing out leasable space. If the rules get delayed, the effect of that is we will just be able to raise higher amounts. But as soon as it’s ready, and it looks okay, we will go,” Mr. Sia said.
The company earlier said it wants to raise up to P15 billion from a REIT offering in early 2020, while its entire portfolio could potentially raise up to P59.4 billion
DoubleDragon’s net income attributable to the parent jumped 104% to P1.52 billion in the first half of 2019, after gross revenues surged 54% to P5.59 billion.
THE BANKING SECTOR remains robust following “sound and strategic” reforms by the central bank and cooperation from lenders, according to the 2020 Fiscal Risks Statement (FRS) prepared by the Development Budget Coordination Committee.
“The Philippine banking system sustained its growth trajectory and continued to operate in a safe and sound manner due to the sound and strategic reforms the Bangko Sentral ng Pilipinas (BSP) has implemented through the years, involving prudent regulations, risk-based supervision, and earnest cooperation from the banking sector,” the FRS said.
Early this year, the Republic Act No. 11211, an Act Amending Republic Act No. 7653, or the New Central Bank Act was signed into law, updating the central bank’s Charter as well as strengthening its monetary and regulatory functions.
Among the reforms included are the higher fines on banks and financial firms who violate regulations, as well as the authority of the central bank to suspend or revoke licenses of financial firms.
The new law also restored BSP’s authority to issue debt papers which gives it “greater flexibility” in deciding the timing of monetary operations.
“Several regulatory measures have been put in place to improve corporate governance and risk management standards, including the adoption of Basel reforms, promotion of the integrity and transparency of the financial system, and advancement of the financial inclusion agenda,” the statement added.
Meanwhile, domestic consumption is expected to remain as the main driver of expansion next year amid easing inflation and global oil prices.
Household spending in the second quarter still accounted for the bulk of the 5.5% gross domestic product (GDP) expansion, the FRS said. GDP growth in the April-June period slowed from the previous quarter’s 6.1%.
“In real terms, GDP is targeted to grow by 6.5 to 7.55% in 2020, with domestic demand seen to remain as the country’s main driver of economic growth. Household consumption is deemed to recover in the near term, as inflation is anticipated to revert back to the 2.0 to 4.0% target of the government,” it said.
Construction by both public and private sectors is likewise seen to boost investment while government spending is also expected to pick up next year, it said.
The FRS also said the Foreign Investment Act will allow the government to open up the economy and further boost investments next year.
“Reforms in the area of public utilities and retail trade should be prioritized. The amendment of the Foreign Investment Act is likewise important to increase foreign investments in both domestic- and export-oriented enterprises,” it said.
The FRS aims to present risks to the government’s fiscal position and aid in the formulation of necessary policies and plans of action.
It outlines the country’s exposure to fiscal risks stemming from various channels such as the projections used for budgetary purposes, public debt dynamics, operations of local governments and government corporations as well as public-private partnerships, contingent liabilities and the mechanics of the financial sector. — B.M. Laforga
Text and photos by Kap Maceda Aguila
THE DECISION to pull the trigger on releasing the all-new GR Supra locally surely makes a lot of sense for Toyota Motor Philippines (TMP) from both emotional and business standpoints.
An iconic nameplate now cycling on its fifth iteration, the Supra has made a reputation for itself as a capable sports car, with each succeeding generation pushing the limits of the performance bar its time. But it must be said that its allure has gone up steadily as a result of a prolonged absence of 17 years since the last Mark 4 rolled out of the production line.
Speaking of the Mark 4 or A80, it bore an SJZ-GTE 3.0-liter DOHC turbo inline six good for 320hp and 427Nm. It had a body extensively made of aluminum. A 0-to-60mph rate of 4.6 seconds is remarkable even by today’s standards, yet that Supra’s biggest claim to fame was a 70-0mph stopping distance of 45 meters — a world record that stood for more than 15 years.
Toyota Motor Corporation Technical Adviser David Lovett remarked to the group of regional motoring media at the Sportsland Sugo track in Miyagi Prefecture, Japan, that the Mark 4 truly enabled the Supra to “push (towards) world-class sportscar models.”
Cognizant of the Supra’s undeniably rich history, Toyota believes it has released a worthy inheritor of the badge. That said, the GR Supra is expected to key TMP’s entry into the local specialty passenger car segment — currently able to move 60 to 85 units a month.
The “GR” prefix stands for Gazoo Racing, which “embodies Toyota’s commitment to overcoming every limit to make even better cars by forging new technologies and solutions under the extreme conditions of motorsports.” Made in the Magna Steyr plant in Graz, Austria, the GR Supra shares a heart with the BMW Z4. The two vehicles also have a common transmission (a ZF eight-speed automatic), dampers, and steering rack.
There are two engine options available: the four-cylinder, 2.0-liter B2001 supplying 255hp and 400Nm, and the 3.0-liter, inline-six B30M1 blurting out 335hp and 500Nm. The Philippine market gets the more potent power plant, while the other is earmarked for territories more heavily taxing powerful engines.
The first leg of the GR Supra drive took us from Sugo to the Kamafusa Dam in Kawasaki. The scenic, undulating route proved an appropriate way to acquaint ourselves with the car. Sticking to the speed limit and ascertaining lower-rev poise allowed assessment of its everyday drivability. The car doesn’t seem anxious even when merely coasting along.
Much torque satisfyingly comes low on the rev range. Mr. Lovett had indeed noted earlier how one can realize maximum torque at 1,500rpm — a value helped along by the Supra’s 11:1 compression ratio — allowing the twin-scroll turbo to spool up even faster.
Engaging the Sport mode yielded an eagerness to rev up. “It’s an additional measure to enhance driving pleasure,” said Mr. Lovett. The car let out hearty “pops and burbles,” reaffirming what the Supra is really all about — heightened performance. That pleasing sound, helped along by the GR Supra’s sound system, isn’t artificial at all because the car’s advanced system actually doesn’t go into “fuel cut” when Sport is engaged, hence the real backfire.
On the outdoor, serpentine closed course of the Sportsland Sugo, we got a chance to stretch the legs of the GR Supra even more. After taking speed even through corners, the vehicle revealed excellent rigidity and poise — facilitated by a low center of gravity and an ideal 50/50 weight distribution ratio.
Inevitably, on the Fédération Internationale de l’Automobile (FIA)-accredited track of Sugo, the GR Supra appeared and felt most at home. It is a track weapon, after all. Toyota also wanted to highlight its straight-line ability. But the GR Supra shines most around corners. It has a rear that won’t quit — keeping firmly planted even when much is asked of its front wheels.
The GR Supra stretches 4,379mm, is 1,854mm wide, and towers 1,294mm. By comparison, the Toyota 86 is 4,240mm long, 1,775mm wide, and 1,320mm high. But despite being larger than 86, the GR Supra’s wheelbase is shorter by 100mm. In tandem with a wide track width, it achieves what its chief engineer Tetsuya Tada calls a “golden ratio” of 1.55 (computed by dividing the wheelbase with the track width). The lower the number, the more the car adheres to a go-kart experience as far as easy cornering goes. Still, one cannot go too far down this number as straight-line stability suffers. For comparison, the previous-generation Supra had a 1.67 value.
The front-mid engine configuration in the new Supra was achieved by moving the engine as far back as it could to be entirely behind the front axle. Alternative materials such as aluminum (for the hood, front side members, suspension towers, and doors) and resin (for the trunk lid) were used to save on weight. There’s no vestigial back seat like the 86’s.
And true to the vision of the Supra, Mr. Tada had been adamant about the Supra being accommodating to modifications and customizations. “He wants people to modify. He wants them to get excited about cars again,” underscored Mr. Lovett.
Speaking of exciting, Velocity asked Mr. Tada about the possibility of a manual-transmission Supra. “If enough people ask for it,” he said with a smile.
DAVAO CITY — Micro and small enterprises involved in coffee, cacao, coconut, and processed fruits and nuts in the Davao Region will be among the first beneficiaries of the Rural Agro-enterprise Partnership for Inclusive Development and Growth (RAPID Growth) project.
The program, funded mainly by the International Fund for Agricultural Development’s (IFAD) and implemented by the Department of Trade and Industry (DTI), will cover 17 provinces in Mindanao and three in Eastern Visayas.
DTI-Davao Assistant Regional Director Edwin O. Banquerigo said the “market-driven program” would boost the income of farmers by helping them develop value-added products and linking them with buyers.
Mr. Banquerigo, also RAPID Growth project director, said the target is to start implementation within the last quarter of the year.
“We are still in the initial stage of preparations,” he said.
The total budget for the 20 provinces is P4.78 billion, or about $91.6 million.
Some $62.9 million will come from IFAD in the form of loans and another $3 million as grant. The rest will be covered by the national government, local government units, and the project beneficiaries.
According to a RAPID Growth briefer, the products supported by the program “have strong domestic and international market potential.”
The targeted commodities also involve “large numbers of rural farmers with high final value adding potential” and “a good number of cooperatives and SMEs (small and medium enterprises) in processing and trading segments, serving as anchor firms.”
More sectors may covered by the program later on based on “jobs, livelihoods, income generating potential and market considerations.”
The beneficiary provinces in the Eastern Visayas Region are Northern Samar, Leyte, and Southern Leyte. In Mindanao, the 17 provinces are: Compostela Valley, Davao Oriental, Davao del Sur, and Davao del Norte in the Davao Region; Agusan del Norte, Agusan del Sur and Surigao del Sur in Caraga; Misamis Oriental, Bukidnon and Lanao del Norte in Northern Mindanao; Cotabato, Maguindanao, Sultan Kudarat and Sarangani in the south-central portion of the island; and Zamboanga del Norte, Zamboanga del Sur and Zamboanga Sibugay in Zamboanga Peninsula. — Carmelito Q. Francisco
KIEV — Ukraine’s innovative OCHIS eyewear brand is getting customers to literally smell the coffee — by making sunglasses out of coffee waste.
Driven by an ambition to create eco-friendly yet fashionable sunglasses, OCHIS COFFEE CEO Maksym Havrylenko experimented with various herbs like mint, parsley, and cardamom, before he found the right natural material in coffee waste.
Green industries already use coffee waste to produce furniture, cups, printing ink, and biofuel, but Havrylenko is a pioneer in using it to make sunglasses, which smell of the freshly brewed beverage.
“First, coffee is black which is a classic color of sunglasses which suits everything. Secondly, there are lots of coffee grounds in the world. There are millions of tons of coffee grounds in the world,” Havrylenko told Reuters.

Havrylenko, who comes from a family of opticians and had 15 years of experience in the eyewear industry, had to dump some 300 samples before creating what he said were perfect OCHIS COFFEE sunglasses that are now available for $78 to $89.
The main advantage of sunglasses made of coffee grounds and flax glued by vegetable oil is that if disposed, they turn into a fertilizer after 10 years, he said.
OCHIS COFFEE’s first fund raising effort on crowdfunding platform Kickstarter raised $13,000, surpassing an initial $10,000 target and attracted customers from the United States, western Europe, Japan, and Australia. Havrylenko said only 10% of clients were from Ukraine.
“Our super goal is to promote at least in Ukraine and in the entire world, first, the idea of production of clean products and, second, proper waste disposal,” he said. — Reuters
THE PESO is likely to perform stronger this week amid expectations of a slower August inflation print.
The local unit closed at P52.05 against the greenback on Friday, 13 centavos stronger than the P52.18-to-a-dollar finish on Thursday, ahead of the implementation of the first tranche of the planned 15% tariffs by the United States on some $125 billion worth of Chinese goods.
On a week-on-week basis, the peso went up by 22 centavos from its P52.27-per-dollar finish last Aug. 23.
“There seems to be a consensus that August inflation further slowed down. This will weigh and may strengthen the peso further as inflation numbers are set to be revealed [this] week,” Ruben carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc., said in an e-mail late last week.
“If and when we hear something to be announced over the weekend regarding the trade agreement between the US and China, we’ll see a continuation in the improvement in the risk tone or risk sentiment of the market players,” a currency trader said separately on Friday.
A BusinessWorld poll of 12 economists late last week yielded a median inflation estimate of 1.8% for August, settling above the midpoint of the 1.3-2.1% forecast range provided by the Bangko Sentral ng Pilipinas’ Department of Economic Research.
If realized, this would mark the third straight month of slower inflation from June’s 2.7%.
This reading would also be lower from 2.4% in July and 6.4% in August last year.
The estimate matches October 2016’s 1.8% print and would be the slowest reading in 35 months or since the 1.7% pace recorded in September 2016.
The Philippine Statistics Authority is scheduled to report August inflation data on Sept. 5.
Meanwhile, the US was set to begin collecting 15% tariffs on more than $125 billion worth of Chinese imports, including smart speakers, Bluetooth headphones and many types of footwear starting yesterday.
No grace period will be provided on those tariffs for goods in transit, the US Customs and Border Protection agency said on Friday.
As part of its retaliation, China will begin imposing a 5% tariff on US crude oil also from Sept. 1, the first time US oil has been targeted since the world’s two largest economies started their trade war more than a year ago, Reuters reported.
Tariffs have been imposed on $250 billion of Chinese products so far since the trade war began in 2018, and US trade groups and manufacturers have criticized the policies for hurting profits.
This week, UnionBank’s Mr. Asuncion expects the peso to trade between P51.90 and P52.20 versus the dollar, while the trader sees the local unit moving from P52.00 to P52.50. — Mark T. Amoguis
LOCAL DEBT watcher Philippine Rating Services Corp. (PhilRatings) assigned the highest credit rating for Aboitiz Power Corp.’s (AboitizPower) fixed-rate bonds worth up to P12 billion.
In a statement, PhilRatings said it gave AboitizPower an issue credit rating of PRS Aaa, which indicates the company’s “extremely strong” capacity to meet its financial obligations.
The rating was also given a stable outlook, which means that it is unlikely to change in the next 12 months.
AboitizPower looks to sell P10 billion worth of bonds, with an over subscription of up to P2 billion. The bonds will have a tenor of seven years, maturing in 2026. This is the third tranche from its P30-billion shelf registration at the Securities and Exchange Commission.
The company expects to push through with the offering in the fourth quarter. The bonds will then be listed at the Philippine Dealing and Exchange Corp.
Proceeds from the offering will be used for repayment of short term loans and general corporate purposes. AboitizPower obtained the loan from Metropolitan Bank & Trust Co. from May 2018 to April 2019, to partially finance its acquisition of AA Thermal, Inc., according to a prospectus posted on its website.
The company engaged BDO Capital & Investment Corp. and First Metro Investment Corp. to be the offering’s joint issue managers. The two firms will work with China Bank Capital Corp., SB Capital Investment Corp., and PNB Capital & Investment Corp. to be joint lead underwriters.
At the same time, PhilRatings also maintained the PRS Aaa rating for AboitizPower’s outstanding bonds worth P23.2 billion.
The debt watcher said it took into account AboitizPower’s significant level of cash flow and financial flexibility, adequate capital structure, diversified portfolio, and its experienced management team in coming up with the ratings.
“PhilRatings’ ratings are based on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to AboitizPower and may change the rating at any time, should circumstances warrant a change.”
AboitizPower ended the first half of 2019 with 3,349.7 megawatts (MW) of attributable net sellable capacity. It has interests in hydroelectric, geothermal, solar, coal-fired, and oil-fired power plants.
The company targets to add 133 MW within the year, and 935 MW in 2020, in a bid to reach its target of having 4,000 MW of attributable net sellable capacity by next year.
AboitizPower’s net income attributable to the parent slipped 2% to P5.02 billion in the second quarter of 2019, on the back of a 4% decline in gross revenues to P34.86 billion.
For the first half, its attributable profit dropped 7% to P8.65 billion, while gross revenues were lower by 2% to P63.96 billion. — Arra B. Francia