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Nation at a Glance — (07/18/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

The new BMW M5 has all-wheel drive


ALL-WHEEL drive. Seems only proper that the sixth-generation BMW M5 — which on July 15 made its Philippine debut suitably surrounded by supercars of varying makes — is capable of allocating grunt to all four wheels rather than just the rear ones, as the case had been in all previous M5s. The latest car is the most powerful rendition of the model yet, and the added traction guaranteed by all-wheel drive should raise the M5’s performance level as the engine’s output is transmitted to the tarmac more effectively than ever.
Yet the new M5 sticks to the model’s brief by still coming with four doors, a well-appointed cabin that could easily seat five, plus a huge trunk. And all this while wearing relatively subtle styling — only those who know can tell it apart from the regular, higher-variant 5 Series.
Here are key items that mark out the new M5:
• 4.4-liter V8 engine with a twin-scroll turbocharger, evolved from the previous M5, now makes 591 hp and 750 Nm. It is fitted with an eight-speed automatic transmission with Drivelogic. BMW said it shifts quickly and has “optimal ratio spacing” that isn’t only good at efficiently spreading engine output over a wide rev range but also improves fuel consumption, too.
• All-wheel drive system called M xDrive is always switched on, along with the dynamic stability control (DSC). But different driving modes vary handling characteristics, including a rear-wheel drive setting with the DSC off.
• Drive settings can be switched to Comfort, Sport and Sport Plus, each of which alters the behavior of the Drivelogic, the M-specific variable damper control with electronically controlled shock absorbers, and the power steering.
• M-specific exterior pieces are functional rather than cosmetic. These include a front apron with large air inlets for the cooling systems and the brakes; wider fenders (with signature “M gills”) to accommodate larger wheels; carbon fiber-reinforced plastic roof which lowers the car’s center of gravity and reduces weight; aerodynamic side mirrors; a rear diffuser; a rear spoiler; and various other aerodynamic appendages.
• Staggered-size, light-alloy, 20-inch wheels with split spokes are fitted with 275/35 R20 tires in front and 285/35 R 20 at the rear. Wheels are 9.5 inches and 10 inches wide, fore and aft, respectively.
• Cabin features include M leather steering wheel with shift paddles and electrically adjustable sport seats which promise to secure the driver and passengers in place during hard maneuvers.
• Price is set at P14.790 million.

Richard Mille RM 11-02

Richard Mille RM 11-02
INDEPENDENT high-end watchmaker Richard Mille, partner of the Le Mans Classic since it began in 2002, has been creating special pieces to mark each edition of the motor racing event. For the 2018 edition, held in early July, Richard Mille unveiled the RM 11-02 Le Mans Classic. Without doubt a piece of haute horlogerie, the flyback chronograph bears the colors of the competition not only on the movement, but also on its white case band and the rubber collar of its crown. Also on the dial is the Le Mans Classic logo, along with the number 16, indicating the start time of the endurance race. The RM 11-02 Le Mans Classic is limited to 150 pieces.
MOVEMENT: RMAC3 automatic in grade 5 titanium incorporating a variable-geometry rotor, annual calendar, UTC display, 24-hour flyback chronograph and countdown feature
CASE: White ceramic with carbon TPT with skeletonized dial
BRACELET: White ceramic

Dashboard (07/18/18)

Shell forum
Pilipinas Shell executives, industry partners toast their efforts.

Pilipinas Shell holds technology forum

PILIPINAS Shell Petroleum Corp. (PSPC) said the 2018 Shell Technology Forum saw representatives from the government, academe and various industries talk about developments in the business sector, as well as to “push for innovation and cooperation” among industry players.
The company said that among the products presented were the Shell Card, which aims to provide mobility solutions to fleet customers (such as roadside assistance) and the upcoming Shell Telematics, a GPS device for vehicles which collect data like performance reports, driver behavior, and fuel consumption.
Shell at the forum also highlighted its FuelSave Diesel with Dynaflex detergent technology, which a company official described as “designed to help provide better fuel economy, improve engine efficiency, and increase load pulling power when needed in heavy-duty diesel engines.”


Isuzu truck
Isuzu officials Joseph T. Bautista (left) and Hajime Koso with an EXZ truck.

Isuzu displays new jeepney in bus, truck show

ISUZU Philippines Corp. (IPC) said it displayed not only its lineup of “versatile cargo haulers,” but also its version of the modernized jeepney at the Philippines Bus & Truck Show 2018 held on July 13-15 in Pasay City.
IPC’s display included the Isuzu NMR C/C, QKR and EXZ trucks. But the company said highlighted was its jeepney “built to meet, if not exceed, the government’s standards and specifications for the Public Utility Vehicle Modernization Program.”
The Isuzu jeepney is based on the brand’s QKR77 cab-and-chassis platform. Its passenger compartment in the rear was designed and manufactured by three local companies specializing in building vehicle bodies. The jeepney’s passenger door is on the right side, facing the sidewalk, and its other features include panoramic windows and windshields, full-body insulation with GeneQ shield, automatic door closer, ECE-compliant head lamps, and provisions for persons with disabilities.
The jeepney is also fitted with LCD/LED monitors, electronic signage, fire extinguishers, GPS navigation system, a CCTV, dashboard and back-up cameras, and the BEEP automatic fare collection system.


Ferrari PortofinoFerrari Portofino gets Red Dot design award

THE V8-powered Ferrari Portofino GT has received the Red Dot: Best of the Best award for its “ground-breaking design,” the car maker said in a statement. It noted this is the fourth consecutive year Ferrari has received the design award for one of its new models.
Ferrari described the Portofino as an “elegant and versatile convertible which features a retractable hard top together with class-leading performance and luggage space.”
The company noted the Portofino follows the “unmistakable design and ground-breaking technology” of the Ferrari 812 Superfast, which it said redefined the language of a front engine Ferrari, as well as the FXX-K Evo, which features an evolved aero package.

The car is not the star

I’ve attended more car launches than my deteriorating memory can accurately recall, but I can confidently proclaim last Sunday’s BMW M5 debut as the most amusing one. It wasn’t because of production value. In fact, there were no fog machines, no balletic dancers, no executives descending from the rafters. There was only a simple backdrop that visually framed the car and the podium beside it. Quite a spartan setup for the arrival of a P14,790,000 high-performance German sedan, to be honest.
And yet the place was packed with petrolheads who were so loaded they managed to transform the venue’s parking lot into a mini version of the Geneva Motor Show without really trying. Driving to the San Miguel Corp. (SMC) compound for the event were wealthy owners of Ferraris, Lamborghinis and McLarens. On a Sunday. At seven in the morning. In heavy rains. Purportedly to attend a car launch. But surely, this wasn’t the M5’s irresistible appeal at work here.
No, the members of the so-called Supercar Club showed up to the affair for one reason only: to show their support for Ramon S. Ang, the car-crazy SMC president who acquired the BMW distributorship from Palawan Governor Jose Alvarez last year — and then proceeded to change the company name to SMC Asia Car Distributors Corp. (SMCACDC). Along the way, he poached Lexus Manila sales director Spencer Y. Yu, the same guy who had sold him mass-market Japanese vehicles during the latter’s stint at Honda Makati as a young car salesman. Mr. Yu officially became SMCACDC’s president last July 1.
If stories circulating about him are anything to go by, that’s how Mr. Ang operates. He rewards people for their loyalty, and he gets them to do his bidding. If RSA tells you to pack up your things at your current employment and asks you to look after one of his business units, you do exactly that. At least that’s what Mr. Yu did when he severed his ties with Lexus and, by extension, Toyota and George S. K. Ty.
By all accounts, friends never say no to Mr. Ang. Take CATS Motors’ Rene G. Nuñez, for instance. As president of a Mercedes-Benz dealership, he should be running as far away from any BMW gathering as he humanly could. On Sunday, not only was Mr. Nuñez one of the special guests, he also lent a couple of his classic M5s for the BMW model’s multi-generation display in the driveway.
Ah, and there was Carlos Gono, the owner of the AutoPlus Sportzentrium garage shop whom RSA fondly referred to as his “kumpadre” in his speech. It was Mr. Gono who personally invited many of the affluent supercar owners in the guest list. He and Mr. Ang go a long way back — apparently all the way back to when RSA was still running a car shop of his own. The Big Boss never forgets. He remembers who his friends were before he became a three-letter power acronym that sends top bankers quaking in their boots, and he relies on them for the occasional support he could otherwise buy with his loose change.
With Mr. Ang now at the helm of the BMW business in the Philippines, expect a major migration of customers from rival luxury and premium brands. This is not just a typical executive leading a car company — this is one of the boys, a true car nut who happened to hit the big time beyond anyone’s wildest imagination. When he takes the microphone and says the M5 is faster than your Ferrari or Lamborghini, you don’t feel insulted. You feel good. Because Ramon S. Ang wants to sell you a car. Which means he wants to do business with you. And anyone who has done so has only gratitude to express.
The M5 breakfast meeting offered a peek into how it’s going to be from this point on: car guys taking selfies with the BMW chief, grown men lining up for a chance to chat with him, prospective buyers wishing he could sell them on that new X model. Ramon S. Ang will be a traveling rock concert for the Bavarian brand.
Other car company bosses will market their products to you based on spec-sheet merit. RSA will make you want to buy a BMW M5 without the need to mention its 600-hp V8 engine and all-wheel-drive sure-footedness. You’ll get one because you’re hoping that maybe — just maybe — you could get into his circle and swap motoring stories with him, interspersed with business lessons here and there.
If you’re lucky, you could even be someone he’d demand loyalty from. A fate I’m sure brings many rewards with it.

Philippines’ top trading partners for imports (May 2018)

By Mark T. Amoguis, Researcher
The country’s main source of merchandise goods in May was China, cornering 20.3% of the total import bill that month. South Korea and Japan followed with 10.3% and 9.5% shares, respectively.
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Philippines’ top trade partners for exports (May 2018)

By Mark T. Amoguis, Researcher
The United States was the top market of Philippine-made products in May, contributing $840.15 million to total exports. It was closely followed by Hong Kong and China with receipts from these economies reaching $796.47 million and $761.40 million, respectively.
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Japan’s growing plutonium stockpile fuels fears

Tokyo — Japan has amassed enough plutonium to make 6,000 atomic bombs as part of a program to fuel its nuclear plants, but concern is growing that the stockpile is vulnerable to terrorists and natural disasters.
Japan has long been the world’s only non-nuclear-armed country with a programme to reprocess spent nuclear fuel from its power plants into plutonium.
On Tuesday a decades-old deal with the United States which allows Japan to reprocess plutonium was renewed, but the pact can be terminated by either side with just six months’ notice.
Plutonium reprocessing is meant to create a new and emissions-free fuel source for resource-poor Japan, but the size of its stockpile has started to attract criticism, even from allies.
Plutonium can be used to create nuclear weapons. Although Japan has vowed the material would never be used for military purposes, it has now amassed vastly more plutonium than it can use, since many of its nuclear plants are still offline after the 2011 Fukushima disaster.
Experts warn the growing stockpile could be dangerous in case of a natural disaster, like the earthquake and tsunami that set off the Fukushima meltdown, and is also an attractive target for terrorists.
They also fear the reserve could encourage other regional powers, including China, to press for a similar reprocessing capability, boosting the amount of weaponisable plutonium in Asia.
And some even warn that North Korea could point to the stockpile as an excuse to avoid denuclearising.
This month Japan’s government vowed for the first time to “tackle a reduction in plutonium stocks” but gave no roadmap.
The country’s Atomic Energy Commission reportedly plans a self-imposed cap on the reserve, which now stands at 10 tonnes inside the country, with another 37 tonnes in Britain and France for reprocessing.
Costly and complicated
“Promising to stop increasing the stockpile is the least they should commit to,” said Tatsujiro Suzuki, former vice chairman of the commission.
“What they really need to do is set a clear goal for reduction,” Suzuki told AFP.
“It’s time for Japan to fully review its nuclear recycling program.”
The stockpile has attracted concern in the wake of the Fukushima nuclear disaster, which forced the shutdown of all of the country’s nuclear plants.
Only some have resumed operations, and their fuel requirements fall far short of the stockpile Japan has already amassed.
Despite that, the government has continued work on a decades-long multi-billion dollar project to build a new reprocessing plant, using French and local technology.
Most reprocessing is currently done overseas, mainly in France, and Japan has struggled with technical problems at the new facility.
The planned reprocessing plant, in Aomori in northern Japan, has so far cost around $27 billion, but the technical problems mean there is no sign of an opening date despite decades of work.
Experts say reprocessing plutonium into fuel is up to ten times as expensive as producing uranium dioxide fuel.
“Japan’s plutonium separation is very costly and has no economic or environmental benefit,” said Frank von Hippel, a Princeton University professor who researches nuclear arms control and policymaking.
Regional race
Tokyo’s reprocessing programme also runs the risk of sparking a regional race, warned Thomas Countryman, a former US State Department official for arms control and non-proliferation.
“In the region, it is not in the interest of the United States or Japan or the world to see South Korea or China imitate Japan and enter the field of civilian reprocessing,” he told Japanese lawmakers last month.
“This would increase the risk to nuclear security, that is, the risk terrorists or criminals might divert plutonium, and it would increase regional competition in a technology that offers more risks than it does benefits,” he added.
China is already pushing for its own reprocessing capacity with the help of French and Russian partners, while South Korea has been researching reprocessing technologies but faces objections from environmentalists.
Japan, the only nation in the world to have suffered an atomic bomb attack, insists it would never use its plutonium for military purposes.
The reserves are subject to monitoring by the International Atomic Energy Agency, which has not raised public concerns about the stocks.
But some activists fear Japan views the stockpile as a way of keeping its options open on nuclear weapons.
“Japan appears be caught up in the idea that in an emergency it can produce nuclear weapons with its reprocessing technology,” said Hideyuji Ban, co-director of the Citizens’ Nuclear Information Centre, an anti-nuclear NGO. — AFP

STI Holdings’ attributable profit drops 10%

STI Education Systems Holdings, Inc. (STI Holdings) saw its attributable profit drop by 10% in its fiscal year ending March 2018, weighed down by interest expenses charged to operations.
In a regulatory filing, the listed firm reported a net income attributable to equity holders of the parent of P496 million for the year ending March, lower than the P550.2 million it booked in the same period a year ago.
STI Holdings’ fiscal year from April to March follows that of the academic cycle in the Philippines, since it derives majority of its income from education services.
The owner of among the country’s largest networks of private schools attributed this decline to the increase in interest expenses during the period.
“Interest expenses on loans increased by 177% or P140.2 million year-on-year mainly due to interest incurred on the STI Education Services Group’s bond issue charged to expense,” the company said. — Arra B. Francia

Shakey’s opens first store in Dubai

Shakey’s Pizza Asia Ventures, Inc. (SPAVI) is stamping its presence in the Middle East with the opening of its first store in Dubai, banking on the demand from the large population of Filipinos living in the area.
Franchised by Dubai-based firm Aljeel Capital, SPAVI’s newest store is located across Burjuman Mall and near Exit 4 of Burjuman Metro Station, which is described as one of the busiest stations in the city.
“We are excited to have more stores in the UAE (United Arab Emirates), with our flagship Dubai restaurant finally open and with the overwhelming turnout we had during opening night,” SPAVI quoted Aljeel Capital Chief Executive Officer Firas Hurieh as saying in a statement.
Mr. Hurieh noted that the store recorded the highest total net sales during opening day, as well as the largest number of pre-sold loyalty programs cards called Supercards.
“(T)he new store is strategically located and very accessible, thus attracting good traffic and high brand visibility. It features the familiar store environment of a Shakey’s pizza parlor in the Philippines and offers the many iconic products which many Filipinos have grown to love,” the company said. — Arra B. Francia

Xurpas CEO steps down to focus on firm’s blockchain projects

Xurpas Inc. Chairman Nico Jose S. Nolledo will be stepping down as the technology firm’s chief executive officer to lead one of the company’s subsidiaries that will focus on using blockchain projects.
The listed firm said in a statement Tuesday, July 17, that Mr. Nolledo will be focusing on developing Xurpas’ wholly-owned unit, ODX Pte. Ltd., which has already taken in several big wigs in the technology, telecommunications, and crypto industries as investors.
“ODX is a massive long-term opportunity for us, and the commitment to the project shown by the partners who have already signed on, is very strong validation of this…We need all hands on deck to fully realize our plans, and this is why I need to dedicate 100% of my time to ODX,” Mr. Nolledo said in a statement.
Former Xurpas President and Chief Operating Officer Raymond Gerard S. Racaza will now take over as CEO, while Mr. Nolledo will remain as company chairman. — Arra B. Francia

PSBank secures BSP approval for P15-billion LTNCD issuance

Philippine Savings Bank (PSBank) has received the central bank’s approval to raise funds through long-term negotiable certificates of deposit (LTNCD) to expand its consumer banking segment.
In a regulatory filing Tuesday, July 17, the listed savings banking arm of Metropolitan Banking & Trust Co. said it recently secured the approval from the Bangko Sentral ng Pilipinas (BSP) for its LTNCD program amounting to P15 billion.
In May, the bank’s board of directors approved of the issuance in two or more tranches and will be conducted over a year. — Karl Angelo N. Vidal