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By Noel Vera

Restaurant Review
Junior
1964 Notré-Dame St. W, Montreal, Canada

JUNIOR ISN’T the only Filipino eatery in Montreal, but as all the others are clustered around the Cote-des-Neiges neighborhood it’s the only one that chose to strike out for other pastures, establishing itself in 2014 in Griffintown, a former Irish immigrant community turned industrial area turned urban renewal experiment.

A Filipino restaurant as part of the effort to revitalize an economically depressed community? Why not?

The carinderia/bistro sits in a charming little space, with artwork hanging from brick walls, sports shirts tacked to a board, strings of fiesta lights crisscrossing above the tables. A foodcart stands to one corner, the chairs fold and are painted bright colors, utensils and napkins are stuffed into tall plastic glasses centered on each table. Flanking the glass are bottles of three classic condiments in Philippine cuisine: Mang Tomas’ lechon sauce, pinakurat vinegar, and Jufran banana catsup.

Oh, and the restaurant’s glass front rolls up and turns the whole establishment into an open-air terrace (or terrassé, as they put it here) with some tables more open-air than others (we were right next to the window). This being my first night in Montreal I would soon realize that having an outside patio is almost a law among Quebecois restaurants, ready to throw wide open doors and windows and patios at even the hint or possibility of sun, or of reasonably warm weather.

Still! Watching the people glance sideways as they walked by was a fun way to pass the time while we waited on our food.

We ordered. At one point the server asked with a concerned tone: “That’s three pork dishes. Don’t you want any other kind of meats?” My first impulse was to lecture her on the eccentricities of Filipino cuisine, that while we have a few excellent beef dishes (bulalo — bone marrow and shank boiled in broth — comes to mind) and fish is a mainstay, our genius specialty is pork, in particular pork skin fried or roasted to a seductive crispiness, but thought better of it and instead asked for a vegetable and fish dish.

For drinks we opted for water, a glass of calamansi (Philippine lime) juice, and one other. “What’s ‘Ovaltine?’ one of our party asked. I had to explain: a malt drink, add milk or water; often drunk hot or cold (but mostly hot) for breakfast. Blank stare. I sighed and asked for a cup for him. How long has it been for me? Thirteen years, at least, since leaving the country — more, not having tasted the beverage since childhood.

The cup arrives. I asked for a sip. Yep, exactly what I remember, the nutty malt flavor of Nestlé in hot water. No fireworks or burst of music, no camera zooming in on my face as I recall scenes of a long-forgotten youth — just simple confirmation that the corporation with patented ownership of this oddball chunk of my childhood has not fiddled with my memories, that this much of my past against all odds remains intact. Also, that I still liked the drink, and wonder why I stopped imbibing.

The lumpia sariwa (fresh vegetable eggroll) was less about ubod (heart of palm) than it is about tofu — not kosher, but an interesting variation on what is actually a versatile dish, able to take in shrimp, pork, jicama, and a range of wrappers, heavily garlicked and peanutted and dipped in a dark sweet and savory sauce.

The lechon kawali — basically pork belly fried in a wok — boasted of crispy skin as most Filipino pork dishes should; with steamed rice as its necessary accompaniment (the blank canvas on which it would create garish textures and flavors) and a soy-and-lime dip, the sizzled belly is arguably the highlight of the meal — or would be if it wasn’t for the pork sisig.

The pork sisig — basically chopped up pig’s ears and chunks of pork, boiled then seared then served on a hot plate, what the late Anthony Bourdain once called “my single favorite Filipino street food,” and “possibly the best thing you can ever eat with a cold beer,” and yet another time declared was “everything I love about food” — the plate laid before us that night was a lovely version of the classic dish; where some opt for mayonnaise and others a runny-yolked fried egg, Junior serves it both ways: topped with a brilliantly yellow-yolked egg and drizzled with a decadent dollop of mayonnaise. Mix immediately and temper with steamed rice.

The bangus (milkfish) sisig was our one seafood dish (if I remember right they were out of the squid kilawin or ceviché) and as a lighter version of the pork I thought it was a valid iteration, the fishiness of the bangus nicely countered by a squeeze of lime.

The highlight of the meal, surprisingly, was their Bicol Express. I’m familiar with the homely dish of chopped taro leaf, green-gray and greasy from the coconut milk with chunks of pork; Junior’s version was more like a curry — spicy and rich with coconut milk, briny with shrimp paste, ornamented with pork and bright-red tomatoes and bright-green long beans. Was it still Bicol Express without the taro leaf? It tasted good — that sufficed for me.

The waitress — who we mistook for Filipina but turned out to be Taiwanese (she spoke — to my inexpert ears — excellent French) took the time to chat with us and recommended a few places to see in the city, hoped we’d come back Monday for the five-dollar menu ($5 fried chicken, $5 lumpia — Canadian, not US dollars) while a DJ played from a collection of vinyl records (alas, scheduling problems prevented us from attending). All in all not a bad way to enjoy one’s first meal in Montreal.

Meralco-led consortium’s joint venture with BCDA gets PCC approval

By Janina C. Lim, Reporter

THE Philippine Competition Commission (PCC) has approved the proposed joint venture between the Bases Conversion and Development Authority (BCDA) and the consortium of Manila Electric Co. (Meralco) and Japanese firms Marubeni Corp., Kansai Electric Power Co., Inc. and Chubu Electric Power Co., which will undertake the development of a power distribution system in New Clark City (NCC).

The joint venture will distribute power to the host of locators and facilities in the NCC in Capas, Tarlac for 25 years.

In a Commission decision dated June 25, the anti-trust agency said “the proposed transaction has been found to not likely result in a substantial lessening of competition in the retail electricity supply market within New Clark City and the distribution utility market of generated electricity through a supply agreement in the Luzon and Visayas grids.”

The PCC noted that as more businesses are expected to enter NCC, a development which government is positioning to be Luzon’s next economic growth driver, there will be more potential “contestable customers” who can choose their own power provider and not necessarily be limited to the joint venture firm.

Contestable customers are consumers with an average monthly consumption of at least 750-kilowatts (kW) and are deemed by the Department of Energy (DoE) as qualified establishments to participate in its Electricity Open Access Scheme and choose their own retail power suppliers from anywhere in the country.

“Given the development of New Clark City, the PCC expects an influx of potential locators, particularly agro-industrial and institutional clients, to qualify as contestable customers,” the agency added.

The PCC also noted that the DoE’s recent implementation of the competitive selection process (CSP) ensures competition among distribution utilities and electric cooperatives in securing supply from power generators.

“The antitrust authority views the CSP in securing power supply agreements as important competitive step that would constrain the joint venture’s ability to foreclose other power generation companies,” the agency added.

“Lastly, the PCC sees the competitive constraints posed by other generation companies to limit the joint venture company’s ability to foreclose other distribution utilities and electric cooperatives.”

The Meralco-led consortium will have a 90% stake in the joint venture company, while BCDA holds the remaining 10%.

BCDA is a government-owned and controlled corporation that engages in public-private partnerships to develop public infrastructure such as tollways, airports, seaports, and major real estate developments.

The Meralco-Marubeni consortium comprises of Meralco, Japanese conglomerate Marubeni, and power distributors Kansai Electric Power and Chubu Electric Power.

Marubeni Corp. and its consolidated subsidiaries are engaged in the handling of products and provision of services in the areas of import and export. It also conducts business investment, development and management.

The PCC has so far approved three joint ventures involving the BCDA in relation to the development of the 9,450-hectare NCC.

The others are namely the investment promotion agency’s joint venture with Malaysian firm MTD Capital Berhad for the National Government Administrative Center and with the consortium of PrimeWater Infrastructure Corp., Tahal Consulting Engineers, Ltd., Prime Asset Ventures, Inc., and MGS Construction, Inc., for the water and wastewater management of the city.

Metrobank raises P11.25B in fresh funds from bonds

METROPOLITAN Bank & Trust Co. raised P11.25 billion from the fourth tranche of its P100-billion bond program. — BW FILE PHOTO

By Karl Angelo N. Vidal, Reporter

METROPOLITAN BANK & Trust Co. (Metrobank) raised P11.25 billion in fresh funds via fixed-rate bonds, marking the fourth tranche of its P100-billion bond program.

In a regulatory filing Wednesday, the Ty-led lender said it successfully raised P11.25 billion via the two-year bonds after completing its public offer last June 21.

The two-year debt papers carry a coupon rate of 5.5% to be paid quarterly until July 2021.

The bonds were issued and listed on the Philippine Dealing and Exchange Corp. yesterday.

The total amount raised was higher than the bank’s initial target of P5 billion as it accommodated strong demand from institutional, high net worth and retail clients.

Jette C. Gamboa, Metrobank senior vice president and head of strategic planning and investor relations, said proceeds of the fund-raising activity will be used to support its lending activities and to diversify funding sources.

“Metrobank remains optimistic about the prospects of the Philippine economy, and we will continue to participate in the development of the capital markets,” Ms. Gamboa told BusinessWorld in a text message.

HSBC served as the sole arranger and bookrunner of the transaction. It also acted as a selling agent alongside Metrobank and First Metro Investment Corp.

The fund-raising activity marks the fourth tranche of Metrobank’s P100-billion bond program, bringing the issue size so far to P56.75 billion.

In November, the bank raised P10 billion from the issuance of two-year fixed-rate bonds, carrying an interest rate of 7.15%. This offer was reopened in December to raise an additional P18 billion.

Metrobank also raised P17.5 billion in April via three-year bonds.

Philippine Savings Bank, the thrift banking arm of Metrobank Group, announced on Tuesday its maiden peso bond offering where it wants to raise P3 billion via two-year debt papers from July 1-17 to diversify its funding sources and expand its consumer business.

Metrobank posted a P6.8-billion net income in the first quarter, up 15% from P5.9 billion in the same period last year, driven by consistent lending and margin expansion as well as higher fee-based income.

The bank’s shares stood at P71.50 apiece on Wednesday, down 90 centavos or 1.24% from the previous close.

Boxing with giants: Italy’s packing robots are not just cardboard cutouts

CITTÀ DI CASTELLO, ITALY — Amazon’s new recruit comes from a medieval walled town in central Italy and can box and seal at least 600 items of different shapes and sizes every hour. Twenty-four hours a day, seven days a week.

That recruit is the CartonWrap, brainchild of CMC, a small firm that is just one of 630 Italian companies making automated packaging machines — one of Italy’s fastest growing industries, raking in nearly €8 billion in 2018, or about a quarter of the world market.

Machinery is Italy’s top export, worth almost €50 billion ($57 billion) last year and a rare bright spot for a stagnant economy plagued by low productivity and high unemployment.

And leading the pack is — automated packaging — growing nine times faster than the economy as a whole, according to the trade association UCIMA.

“We doubled our turnover in the last three years and I think we will double it again in the next three years,” said CMC Chief Executive Francesco Ponti.

His father, Giuseppe, a technician with a local packaging company, founded CMC in 1980 in a domestic garage not far from the frescoed 16th century palazzi of Città di Castello.

It now employs 300 people and has revenues of €50 million — thanks mainly to CartonWrap, which measures goods coming down a conveyor belt through a scanner and wraps each in a custom-made box.

Both Amazon and Walmart are customers, though Ponti said client relationships were confidential. Others include the Italian fashion group Gucci, the French retailer Leclerc and the Dutch online shop Bol.com.

FASTER AND CLEANER
At up to 1,000 boxes per hour, CartonWrap machines not only pack much faster than humans; they also save money by reducing packaging waste, CMC says.

“We were doing it manually but the problem was handling the volumes,” Tim Fronzek, co-founder of the German online retailer reBuy.com, which dispatches up to 25,000 items a day, told a CMC customer presentation.

“The machines have allowed us to manage the packaging process more efficiently, and process all outbound shipments in just a few hours with the help of two or three employees.”

The machines may not eat lunch but they do need breaks, for on-site technicians to fix problems and clean away the excess hot glue that can clog the machine.

Production capacity is also limited — CMC can only make five or six machines a month, though it plans to double that soon.

While Italian and German companies dominate the automated packaging market, Chinese competition is growing.

The German robotics firm Kuka and the Italian Romaco group have both been bought by Chinese firms in the last three years — and across industrialized countries, humans will soon become redundant on many packaging lines.

Back at CMC, Francesco Ponti is relaxed.

“There are no more people who want to do this job by hand,” he said.

“If automation grows, the (number of) people who work in automation grow, and the quality of their work will be much better than it is today.” — Reuters

South Africa slings back the f ynbos-f lavored gin

JOHANNESBURG — Last year, gin consumption in South Africa grew by an astonishing 50%, to half a pint for every man, woman, and child. No wonder that distilleries are mushrooming, trying to give a colonial tipple a distinctive flavor of the fynbos.

If the British made use of the freely available local juniper berries to bequeath the taste for gin, it is South Africa’s young entrepreneurs who are exploiting the unique vegetation of the shrub and heathland of the coastal Cape.

From under a dozen gin distilleries in 2015, there are now around 65 nationwide, according to the Gin Box subscription club, supplying outlets from artisanal and farmers’ markets in Cape Town to the gastronomic hot spots of Johannesburg.

“Before craft gin drinks came around, the gins that we had were all imported gins. And they only used international flavors, foreign flavors,” said Albert van Wyk, co-owner of the Johannesburg gin maker Ginologist.

The distillery sits in a refashioned warehouse under Johannesburg’s busiest highway that also hosts live bands and art markets on weekends. Inside, clear liquids bubbled disconcertingly in industrial-size glass vessels above outsize versions of science-lab Bunsen burners.

“Our Citrus Gin gets all its citrus from the region up north in Mpumalanga,” van Wyk said. “And our Floral Gin uses hereditaranium, which is a unique South African flavor.”

Beer remains easily South Africans’ favorite alcoholic drink, and the higher-margin craft beers have also enjoyed a recent upswing.

But analysts say the beer market, craft and commercial, has reached its ceiling, and that South Africans are joining a global trend in shifting to whiskey, brandy, and gin — especially women between 18 and 35. Van Wyk said gin sales in some grocery chains were growing by 40% a year.

A 2018 report by market researcher Euromonitor International found craft spirits in South Africa were set for healthy growth in coming years — even if “increasingly obscure and radical botanical tinctures” risked overcrowding the segment.

South African retailers this year surprisingly reported alcohol performing better than grocery items in an otherwise depressed environment where consumers are spending less.

With the cheapest bottle of artisanal gin averaging around 350 rand ($28), annual consumption around last year’s 15.2 million liters or more should keep the distillers in business for a while yet. — Reuters

Manila Water inks JV deals for Lambunao, Calbayog districts

MANILA WATER Co., Inc. has signed and executed a joint venture agreement (JVA) with the Lambunao Water District to handle the water system of the town in Iloilo province in a 35-year project that will entail a capital expenditure of P78.98 million.

The deal covers the design, construction, rehabilitation, maintenance, operation, financing, expansion and management of the water system in Lambunao municipality.

Manila Water said upon the completion of conditions precedent set out in the JVA, the Ayala-led company, through its designated wholly owned subsidiary, shall execute the project for 35 years.

The project is estimated to deliver a potential billed volume of 2.93 million liters per day by year 2054.

Separately, the Ayala-led company disclosed signing and executing a similar JVA with the Calbayog City Water District (CCWD).

Upon completion of the conditions precedent set out in the JVA, Manila Water, through its wholly owned subsidiary, Calbayog Water Co., Inc. and CCWD shall execute the project for 25 years from start date as defined in the JVA.

The project will have an estimated capital expenditure of P1.197 billion, and projected to deliver a potential billed volume of 28.48 million liters per day by year 2043.

Manila Water and its strategic partner, Tubig Pilipinas Group, Inc., have agreed that the latter will acquire shares in Calbayog Water.

Meanwhile, Manila Water said it had completed its 11-kilometer long, 800-millimeter diameter pipelaying and road restoration works along Manila east road traversing the towns of Taytay, Angono, and Binangonan.

It said the completion of the project enables the east zone water concessionaire to bring water supply from its Cardona water treatment plant to the towns in Rizal province.

The Cardona water treatment plant transmission lines project, which started in the third quarter of 2018, was completed ahead of the original target completion date of August 2019, the company said.

“The restoration works needed fast-tracking for completion before the rainy days set in and before the start of the school year to mitigate traffic congestion. This necessitated Manila Water to work 24/7, to be able to meet the adjusted timeline of restoration of May 31 to June 30,” it said.

Traffic schemes were adjusted to address the heavy traffic in certain areas along Manila east road, it added.

On Wednesday, shares in Manila Water were unchanged at P25.50 each. — Victor V. Saulon

Packetworx to complete rollout of IoT wireless connectivity this year

INTERNET of Things (IoT) solutions provider Packetworx, in partnership with Taiwan-based tech firm Browan Communications Inc., is set to complete the rollout of wireless connectivity for IoT devices nationwide by this year.

“Packetworx is in the business of rolling out a nationwide network of wireless connectivity for IoT,” Packetworx founder and chief executive officer Arnold Bagabaldo said in a June 19 interview at the IoT Technology Hub in Pasig City, Manila.

“We want to expand to the whole Philippines, to cover at least 90% of the Philippines in 2019,” he added, with the end goal of turning the Philippines into the world’s IoT capital by 2021 or 2022.

Packetworx uses Long Range Wide Area Network (LoRaWan) technology to allow wireless communication between devices and the internet through LoRaWan gateways developed by Browan.

“Browan, they specialize in developing and manufacturing gateways, cell sites. Browan makes cell sites for LoRaWan, kaya kami partner kasi sila ‘yung nagpu-provide ng (we’re partners because they provide the) hardware,” Mr. Bagabaldo said. He said Packetworx has over 200 cell sites in Metro Manila.

“They’re continuing to support us in providing gateways, but sometimes they also make IoT devices. Although Packetworx develops IoT devices, we also get some from them,” he said.

The company is also providing services to utility companies like Manila Electric Co. and Manila Water Company, Inc., as well as the government, such as the Philippine Atmospheric, Geophysical and Astronomical Services Administration and Quezon City hall, among others.

Browan Communications Senior Account Director Steve Lin said that while it had initial discussions with other local firms, only its talks with Packetworx had “fruitful results.”

“There are several other companies that have also sent us inquiries, but eventually, they’re not following up; only one had fruitful results, Packetworx,” Mr. Lin said during the Taitronics pre-media tour in their headquarters in Hsinchu Industrial Park, Taiwan on June 13.

He added that they are currently working on other original design manufacturer projects, one of which involves creating a mini weather station.

Browan Communications is among the participants of this year’s Taipei International Electronics show Taitronics which will be held from Oct. 16-18. — Charmaine A. Tadalan

Trump’s Fed nominees likely to support easier policy

AFTER A yearlong assault on the Federal Reserve and its chairman, US President Donald Trump has tapped two wildly different economists to the central bank’s board who seemingly have one important thing in common.

They’re both likely to support the president’s call for lower interest rates.

One, Christopher Waller, is the more conventional choice drawn from within the Fed’s own ranks. The other, Judy Shelton, has spent decades outside mainstream economics and has already faced criticism for some of her unconventional views on monetary policy.

Waller is director of research for St. Louis Federal Reserve Bank President James Bullard, who was the only dissenting vote in favor of a rate cut at the Fed’s meeting in June. Shelton, who has been an informal adviser to Trump, has publicly said the central bank should reduce rates.

“It seems like both are going to be in favor of lower rates, and sooner rather than later,” said Kathleen Bostjancic, an economist at Oxford Economics in New York.

“They are much more dovish, and obviously that’s what President Trump wants.”

Trump, who announced his picks within minutes of each other on Twitter Tuesday, has recently struggled to find candidates for the Fed that are acceptable to senators who must confirm nominees. The president previously advanced four people for the two remaining open seats on the board of governors. None of them made it, raising questions about the White House vetting process for his picks.

“It was a great pleasure to meet with the president this afternoon,” Shelton said in an email on Tuesday night. “This president really gets it. His pro-growth economic agenda should not be undermined by wrongheaded ‘Phillips Curve’ thinking that punishes productive economic growth and subverts continued gains while turning a blind eye to the currency impact of ‘additional stimulus measures’ by other central banks. We have high employment and low inflation; so much for the supposed trade-off.”

The Phillips Curve holds that there’s an inverse relationship between unemployment and inflation.

SENATE CONFIRMATION
As a high-ranking Fed staffer, Waller may have a better chance of passing muster with lawmakers than some of Trump’s previous contenders. As for Shelton, the Senate has already confirmed her in her current role as the U.S. executive director for the European Bank for Reconstruction and Development.

Her unorthodox views, though, could attract opposition.

In an interview with Bloomberg in May, she said she was “highly skeptical” that the goals for the Fed set by Congress — the pursuit of maximum employment, stable prices and moderate long-term interest rates — were relevant.

The White House has conducted the search for Fed candidates as Trump has repeatedly blasted Fed Chairman Jerome Powell over the Fed’s interest rate increases. The president has told confidants that he believes he has the authority to replace Powell as Fed chairman, demoting him to the level of board governor, according to people familiar with the matter. But Trump said he doesn’t plan to do it. The president chose Powell as Chair, replacing Janet Yellen last year.

Trump’s eagerness to get rid of Powell makes both of these nominees potential chairs-in-waiting, a factor that may also affect their confirmation process in the Senate. Powell has said he intends to serve his full four-year term and that “the law is clear” on that issue.

Earlier this year, Trump advanced two supporters for the Fed board, Stephen Moore and Herman Cain, but both withdrew their names after they came under criticism.

ST. LOUIS FED
Waller, who declined to comment Tuesday on his nomination, is a Ph.D. economist who previously served as a professor of economics at the University of Notre Dame before joining the St. Louis Fed in 2009. His key research focus has been on monetary and macroeconomic theory and the political economy.

Waller was approached by the White House last month about the job and met with Trump Tuesday, said Karen Branding, a spokeswoman for the St. Louis Fed.

The overture came after the White House talked to his boss, Bullard, about joining the Fed board of governors himself. But Bullard told reporters last month that he’s happy in his current position.

The two men are close and have co-authored monetary-policy papers. Waller shares, and helped to develop in 2016, Bullard’s dovish view that policy is in a new regime in a world with low inflation and high savings — where higher interest rates are not needed.

“We didn’t see any overheating in the economy coming, and so the question was, why are we raising rates,” Waller recalled in a June interview with Bloomberg. “We didn’t see any reason to raise rates just for the sake of raising rates.”

Waller also said that he doesn’t worry about pushing the unemployment rate too low and sparking higher prices. “We don’t buy into the Phillips curve story that low unemployment causes inflation. Look at Japan,” he said.

FED POLICY
Shelton has a doctorate in business administration from the University of Utah with an emphasis on finance and international economics. She previously worked for the Sound Money Project, which was founded to promote awareness about monetary stability and financial privacy.

In her interview with Bloomberg in May, Shelton questioned the use of the Fed’s basic interest-rate tool to adjust the price of money, and thereby guide an economy toward a sustainable level of growth.

“A Fed that is too eager to artificially put in an interest rate that isn’t close to what the market would be suggesting is not so good,” she said at the time. “I would try to be the voice saying, are you sure you know better than the markets?”

Shelton has also in the past argued for a return to a gold standard, fixing the value of the US dollar to a weight of gold, a system the US followed to varying degrees until 1976.

If appointed to the Fed, however, Shelton said she would not call for a return to the gold standard or for a sudden abandonment of other established policies.

After raising interest rates last year in the face of criticism from Trump, Powell and fellow Fed colleagues are widely expected to cut rates at their next meeting at the end of this month. — Bloomberg

Nestlé starts delivery service for its milk, which includes recycling of used cartons

THERE IS not question that by nurturing the planet, you nurture your kids. Nestle’s subscription service, with the help of goodfood.ph — think of it as having milkmen like the days of yore — makes it easier for parents to do the same.

Families can sign up at https://subscriptions.goodfood.ph/ready-to-drink to subscribe to a milk delivery service, offering Nestlé products Chuckie, Milo Ready-to-Drink, Bear Brand Yogu, and Nestle Fresh Milk, Low-Fat Milk, and Non-Fat Milk. The subscription plans can cost from P629 for 24 cartons of Chuckie, to P1,239 for more flexible options.

In the spirit of sustainability, the used milk cartons will also be collected from the subscribers and brought to a partner upcycling facility.

“For now, this initiative focuses on collecting the used beverage cartons of our subscribers, regardless of the manufacturer or brand, for our upcycling initiatives. In the Philippines, there are current recycling facilities that can take in UBCs, making this type of packaging recyclable,” said Veronica Cruz, Business Unit Manager of the Nestlé Ready-To-Drink portfolio.

According to Ms. Cruz, the collected cartons will be sent to a partner paper mill in Bulacan that recycles them. The fiber in the cartons will be used to make craft paper products such as notebooks, paper bags, and the like. Later in the year, machinery to turn UBCs into chipboard or roofing sheets material will be operational.

“Tackling the problem of plastic waste in the environment and arriving at sustainable solutions are of paramount importance to Nestlé. It is for this reason that our vision is that none of our packaging, including plastics, should end up in the landfill or as litter, including in seas, oceans, and waterways. We remain steadfast in our commitment that 100% of our packaging should be recyclable or reusable by 2025,” she said. “While we continue to work on sustainable packaging for our other products, we also focus on collection and recycling.” These plans include partnerships with LGUs in places such as Bulacan, Cagayan de Oro, and Isabela. According to Ms. Cruz, they have partnerships with start-ups and social enterprises to recycle sachets into eco-bricks and eco-pavers for building homes. — JLG

Shiseido’s beauty smartphone app promises perfect skin at $92 a month

SHISEIDO Co. is making it easier for customers to benefit from — and pay for — perfect skin.

For 10,000 yen ($92) a month, customers will be able to access the Japanese cosmetics maker’s skincare subscription service called Optune. Using a smartphone app that analyzes skin and a dispenser with five serum cartridges, Shiseido says it can deliver the most appropriate skincare formula for women.

Shiseido is the latest beauty products provider to embrace technology in the $440-billion global industry. Last year, France’s L’Oreal SA bought a company called ModiFace, which develops software that lets consumers use augmented reality to see how they would look with different types of blushes and eye shadows.

“We see scope for benefits that will exceed expectations,” Shima Yamanaka, an analyst at SMBC Nikko Securities, wrote in a research note, adding that annual sales of Optune could reach 67.9 billion yen. “Shiseido sees advantages in the lack of marketing costs and better attachment with customers.”

Shiseido is targeting women facing “the dilemma of valuing skincare but struggling to find the time to find the perfect formula,” Shigekazu Sugiyama, president of Shiseido Japan, said at a news conference in Tokyo. Research by the company shows that the more hectic the lifestyle, the greater the fluctuation seen in complexion, he said.

Optune’s cylindrical device mixes and dispenses a personalized formula twice a day, with as many as 80,000 different combinations. The product’s software, available as an iPhone app, takes photos of the user’s face in order to detect skin conditions. The data is analyzed together with sleep rhythms and menstrual cycles, as well as external factors such as weather and air pollution, in order to deliver the right mix of serums.

That will help to take the guesswork out of choosing the right skincare formula everyday, Shiseido said. Sales for the monthly subscription started Monday, the Tokyo-based company said.

The Optune service is available in Japan, and depending on its success, may be expanded abroad, Sugiyama said, adding that it will be more challenging to serve the needs of a greater variety of complexions. — Bloomberg

Regulator issues cease-and-desist order against mining firm

THE Securities and Exchange Commission (SEC) has issued a cease-and-desist order against Alabel Maasim Mining Corp. (ALMAMICO), Alabel-Maasim Small Scale Mining Cooperative and/or Alabel Maasim Credit Cooperative (ALAMCCO) for its illegal solicitation of investments from the public.

In a statement issued yesterday, the corporate regulator said its Enforcement and Investor Protection Department found substantial evidence proving the group has been offering and selling public securities through investment contracts without a secondary license from the commission.

The groups, which are operating in Sarangani, General Santos City and Koronadal City, have allegedly been inviting members to invest certain amounts with the promise of a 35% monthly return. The returns will then be compounded with the capital if investors agree to lock in their investments for a year.

These investments are offered to the public through videos posted online.

“(ALMAMICO, ALAMCOO) their partners, officers, directors, agents, representatives, and conduits, assigns and any person claiming and acting for and on their behalf are hereby ordered to immediately cease and desist under pain of contempt, from engaging in activities of selling and/or offering for sale of securities in the form of investment contracts,” the commission en banc said in a June 4 ruling.

The SEC highlighted that ALMAMICO is registered only as a stock corporation, but its articles of incorporation explicitly state that it is not authorized to enter into businesses that require a secondary license such as acting as broker or dealer in securities, investment house, and close-end or open-end investment company.

Meanwhile, ALAMCCO is registered only with the Cooperative Development Authority. ALMAMICO’s incorporators are the same as ALAMCCO’s cooperators and directors. They also share the same principal office address.

Citing Section 8.1 of the Securities and Regulation Code, the commission said that “securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the Commission.”

The SEC added that ALMAMICO and ALAMCCO resemble a Ponzi scheme, or an investment fraud where the promised returns to investors are paid out through funds coming in from newer investors.

The commission also instructed the groups to stop transacting business involving the funds in their depository banks. They were also cautioned against transferring, disposing, or conveying in any other manner all related assets to reserve them for the benefit of investors.

The SEC previously warned the public against ALMAMICO and ALAMCCO in an advisory last April 30, on the back of inquiries and concerts regarding their investment activities. — Arra B. Francia

Nomura chief executive’s next task is avoiding a cut to firm’s credit rating

NOMURA HOLDINGS Inc. Chief Executive Officer Koji Nagai, who narrowly escaped an attempt to oust him last week, now faces the challenge of demonstrating to credit-rating companies that his latest turnaround plan will succeed where two previous efforts failed.

S&P Global Ratings said it’s monitoring Nagai’s effort to cut about $1 billion of costs for any signs of falling behind schedule, while Moody’s Investors Service said a failure to improve profitability would put downward pressure on Nomura’s credit rating. Both have negative outlooks on the firm.

While they stopped short of signaling imminent action, any downgrade could undermine Nagai’s efforts to revive Nomura’s money-losing operations abroad because his plans hinge in part on deepening ties with corporate clients and institutional investors.

“Lower credit ratings would raise Nomura’s funding costs, reduce the number of counterparties willing to deal with it and make it harder to attract the quality of customers and staff they need to succeed overseas,” said David Marshall, co-head of Asian bank research at CreditSights Inc. in Singapore.

S&P may cut Nomura’s credit score from A-, four levels above junk territory, if its overhaul stalls, analyst Toshihiro Matsuo said in an interview. Moody’s rates the Tokyo-based bank Baa1, the third-lowest investment grade.

Nomura’s rating could improve if its overhaul, including the $1 billion cut to wholesale business costs and the reduction of branches in Japan, stays on track, Matsuo added.

“Our client base remains strong, and we have a high level of core capital and liquidity,” Nomura said. “We remain committed to prudently managing risk, while transforming our business model and reviewing our cost base to further improve profitability.”

Nagai, 60, was re-elected to the board last week with only 61.7% of shareholders’ votes, after an influential proxy adviser urged his ouster over an information leak. In past years since taking the post in 2012, he obtained more than 90% support even after cost-cutting plans failed to sustain a profit recovery overseas.

S&P “needs to look critically” at Nomura’s overhauls after the previous unsuccessful rounds of restructuring, said Matsuo, who became the ratings firm’s main analyst covering the brokerage in April. “If it becomes clear to us that they won’t be able to achieve the goals they have set themselves, that could naturally work negatively to their creditworthiness.”

Despite its challenges, Nomura’s credit rating at S&P is one grade higher than Deutsche Bank AG’s and the same as that of domestic rival Daiwa Securities Group Inc.

Moody’s changed its outlook on Nomura’s credit rating to negative from stable last November, citing the firm’s “weaker and increasingly more volatile profitability.”

The rating would face downward pressure if Nomura can’t improve its return on assets without increasing balance-sheet risk, Moody’s analyst Shunsaku Sato said in an emailed response to questions.

Conversely, the outlook could return to stable if the firm improves the profitability of its domestic wholesale and retail businesses and limits losses abroad — all without increasing its risk profile, Sato said. — Bloomberg

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