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MPIC logistics arm buys 12% in Air21

The logistics unit of Metro Pacific Investments Corp. (MPIC) has completed its acquisition of a 12% stake in logistics services provider Air21, in line with its goal to become the leading player in the sector within the next two years.
Metropac Movers, Inc. (MMI) President and Chief Executive Officer Marilyn V. Aquino said it has sealed the deal last July, adding that the company has the option to further raise its ownership to as high as 100% in the future.
“12% is an entry point to understand the business more…Until we know the complexity of the business and the major challenges, then we can raise it…We have been granted certain rights to increase our stake. There is no cap,” Ms. Aquino told reporters during a media briefing organized by its parent in Makati City on Thursday.
The acquisition is part of the infrastructure conglomerate’s goal to step up its investments in the logistics sector, in a bid to keep up with the rising e-commerce industry and need for more warehousing spaces in the country. — Arra B. Francia

Case filed vs Philam Life for alleged policy manipulation

Philippine American Life and General Insurance Co., Inc. (Philam Life) is facing administrative case for allegedly manipulating insurance policies.
In a statement, the Insurance Commission (IC) said Philam Life is facing an administrative case filed by a customer named Mona R. Tan, accusing the insurer of policy manipulation.
“Based on the records of this Commission, Ms. Tan filed an administrative case
sometime in February 2017 against respondents Philippine American Life and General Insurance Company (PhilAm) and three (3) PhilAm agents alleging that the methods of business of the respondents is such as to render its proceedings hazardous to its policyholders,” the IC said in a statement sent to reporters Thursday.
The commission added that both parties have undergone stages of administrative proceeding from filing of the complaint until the conduct of mediation proceedings and pre-trial. — Karl Angelo N. Vidal

July inflation seen at 5.6%

Inflation likely surged to 5.6% in July led by higher electricity rates and rice prices plus a new wave of excise taxes on cigarettes, a global bank said, meriting a stronger response from the central bank.
Nomura economists said prices of widely-used goods likely hit another high last month, coming from a 5.2% print in June.
“The pick-up reflects the combined impact of the next round of increase in excise tax for tobacco as mandated by the TRAIN reforms, higher electricity rates and higher rice prices in July. Importantly, beyond these supply-side factors, we believe core inflation likely rose further as the output gap becomes more positive and demand-side pressures remain strong,” the bank analysts said in a report. — Melissa Luz T. Lopez

One overheated laptop battery could down an airliner — study

A single personal electronic device that overheats and catches fire in checked luggage on an airliner can overpower the aircraft’s fire suppression system, potentially creating a fire that could rage uncontrolled, according to new government research.
Regulators had thought that single lithium battery fires would be knocked down by the flame-retardant gas required in passenger airliner cargo holds. But tests conducted by the US Federal Aviation Administration found the suppression systems can’t extinguish a battery fire that combines with other highly flammable material, such as the gas in an aerosol can or cosmetics commonly carried by travelers.
“That could then cause an issue that would compromise the aircraft,” said Duane Pfund, international program coordinator at the U.S. Pipeline and Hazardous Materials Safety Administration, speaking Wednesday at an aviation safety forum in Washington. PHMSA regulates hazardous materials on airliners along with FAA.
The research highlights the growing risks of lithium batteries, which are increasingly used to power everything from mobile phones to gaming devices. Bulk shipments of rechargeable lithium batteries have been banned on passenger planes.
The findings last year by the FAA prompted the government to advocate that the United Nations International Civil Aviation Organization call for a ban on electronic devices larger than a mobile phone in checked bags. That effort fell short, Pfund said.
“One way or another, we have to deal with these hazards,” said Scott Schwartz, director of the Air Line Pilots Association’s hazardous goods program. ALPA, the largest pilots union in North America, is holding its annual safety conference.
ALPA hasn’t taken a formal position on whether there should be a ban on lithium batteries in checked bags and some fear that many passengers would simply ignore it. At the very least, the union is seeking greater education campaigns so travelers are less likely to place spare batteries and electronics in their checked bags.
While fires in carry-on items create their own hazards on flights, experience has shown that they can be extinguished with water. Crew can’t reach bags in cargo areas during flight, so must rely on a plane’s fire suppression systems.
The U.S. Homeland Security Department in June 2017 funneled more such electronics into cargo holds out of fears that electronics as small as a tablet computer could be used to hide terrorist bombs. The agency stopped short of a threatened ban on taking the devices into airline cabins, but required additional screening of electronics.
The FAA hasn’t imposed any new restrictions on what passengers may pack in checked bags. Last year, in a notice to airlines, it said they should conduct a safety study to determine what more they should do to limit the risks of battery fires in cargo areas.
The FAA tests found that the anti-fire halon gas installed in airline cargo areas wouldn’t extinguish a lithium battery fire, but it prevents the blaze from spreading to adjacent material such as cardboard or clothing.
However, aerosol cans exploded in tests even after being bathed in the halon gas, the FAA found.
“There is the potential for the resulting event to exceed the capabilities of the airplane to cope with it,” the FAA said in a notice to airlines last year. — Bloomberg

Manufacturing growth weakens in July

By Elijah Joseph C. Tubayan
Reporter
PHILIPPINE manufacturing activity grew at a slower pace as the second semester began — marking the weakest reading in five months — amid softer demand, according to the latest survey IHS Markit conducted for Nikkei, Inc.
The seasonally adjusted Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) slid for the second consecutive month to 50.9 in July from 52.9 logged in June, reflecting “marginal improvement in the health of the sector.”
The country rose to second place from third in June among the seven Association of Southeast Asian Nations (ASEAN) member economies covered, behind Vietnam’s “solid” 54.9 though still above the ASEAN average of 50.4.
The PMI is a composite index with new orders having the biggest weight among components at 30%, followed by output (25%), employment (20%), suppliers’ delivery times (15%) and stock of items purchased (10%). The 50 mark separates readings above it that reflect expansion from those below it that denote deterioration of business conditions.
“The Philippines manufacturing economy expanded further at the start of the second half of 2018, but at a weaker pace. Growth in both output and new orders slowed noticeably in July, accompanied by a milder accumulation in input stocks,” the report read, explaining that “[t]here were signs of softening demand at the start of the third quarter.”
The report noted that new business increased at its weakest pace in survey history despite export growth hitting a 19-month high, and cited input shortages amid high prices of raw materials.
“Slower sales led firms to scale back their production volumes. Output growth reached a six-month low. That said, there was anecdotal evidence that input shortages disrupted production activity,” the report read.
“Inflationary pressures in the sector remained marked. Higher prices for raw materials… a weaker peso and effects of the TRAIN regulations all contributed to input cost inflation, which remained well above that seen in recent years,” it added, referring to the Tax Reform for Acceleration and Inclusion law. “Greater cost burdens led firms to raise selling prices further in July.”
The latest PMI reading led IHS Markit Principal Economist Bernard Aw to say that “[s]lowing demand presents a worrying development and raises questions whether the recovery from the rollout of new excise taxes at the start of this year is losing steam.”
“One area where the TRAIN laws are still felt strongly is prices. However, external factors are also driving inflation. Survey evidence pointed to higher oil prices and a weaker peso. Input cost inflation remained marked in the manufacturing sector in July which, in turn, led to further increases in selling prices.”
Mr. Aw also noted that lower personal income taxes under TRAIN may do only so much to fuel overall household spending.
“While higher discretionary income may encourage more consumption of manufactured products, the boost will be limited to specific sub-sectors, such as food and beverages. Other key manufacturing sub-sectors such as electronics and electrical as well as chemicals may not benefit as much — or even at all,” he said in an e-mailed reply to queries.
The Bangko Sentral ng Pilipinas gave a 5.1-5.8% estimate for July inflation, compared to the preceding month’s 5.2% pace.
Mr. Aw noted the rise in selling prices “remained far weaker than that of costs, suggesting pressure on profit margins.”
Two other economists said that inflation played a significant role in the slowdown of manufacturing growth, estimating that the overall rise in prices of widely used goods likely picked up to 5.5% in July from June’s 5.2%.
“With the steady acceleration of consumer prices, it is not surprising to see some softening in both consumer demand and manufacturing output. In fact, this trend of slower demand was already evident in the first-quarter GDP (gross domestic product) growth report of the Philippines,” said Land Bank of the Philippines market economist Guian Angelo S. Dumalagan, noting that household spending had then eased.
“If the average inflation of 3.8% in the first quarter was already enough to temper consumer demand, it would be reasonable to expect demand growth to remain short of its full potential given the above-5% inflation in June and July.”
For Ruben Carlo O. Asuncion, chief economist of Union Bank of the Philippines, “Inflation and the weak peso… have been a drag to manufacturing lately.”
“Inflation because domestic input costs go higher, while weak peso makes imported inputs become more expensive; although, the impact of higher government spending may have more than offset these economic growth holdbacks,” he said.

Infrastructure, other state capital outlays top first-half target

GOVERNMENT infrastructure spending and other capital outlays breached the first-half program, the Budget department reported on Wednesday.
Budget Secretary Benjamin E. Diokno presented the government’s first-half disbursement performance in a media briefing, with infrastructure and other capital outlays reaching P352.7 billion, 41.6% more than the P249.1 billion recorded in 2017’s first six months. That was also 4.3% more than the P338.3-billion program for last semester.
“This is attributed to infrastructure projects of various agencies, especially the road infrastructure projects of the Department of Public Works and Highways (DPWH),” Mr. Diokno said.
In June alone, infrastructure and other capital outlays grew 38.5% to P71.9 billion from P51.9 billion in June last year, and by 23.8% from May’s P58.1 billion.
“Specific to June 2018, these projects include the construction, widening, upgrading and preventive maintenance of road networks under the DPWH, the repair and rehabilitation of classrooms and school facilities under the Department of Education and State Universities and Colleges, acquisition of hospital and medical equipment of the Department of Health, and rail transport projects and purchase of airport security equipment of the Department of Transportation,” said the Budget chief.
Mr. Diokno also noted that the government has front-loaded the construction of some infrastructure projects in the first six months of the year, given the appropriate dry season for public works.
Overall government disbursements reached P1.604 trillion last semester, 20.5% more than P1.331 trillion the past year and 2.2% more than a P1.57-trillion program.
“The performance of government spending is unprecedented, because we are ahead of the program for the first time in history,” Mr. Diokno said. “This is a result of the reforms we have implemented in planning and budgeting. The quicker spending should translate to more classrooms for our students, better transport systems for our commuters, improved health and social protection programs for the poor, among other public service provisions.”
Of the total first-half disbursements, personnel services accounted for P460.5 billion, 20.1% more than the year-ago P383.3 billion and 5.6% above a P436-billion target mainly due to the release of retirement and gratuity benefits, as well as the pension of military and police retirees.
Maintenance and other operating expenses grew 16.3% to P242.1 billion from P208.2 billion and exceeded a P238.1-billion program by 1.7%.
Allotments to local governments increased by 8.1% to P210.6 billion from P194.8 billion, but fell 0.6% short of a P211.8-billion program.
Interest payments totaled P165.5 billion, 9.2% more than P151.6 billion last year but 4.3% short of a P173-billion program. — Elijah Joseph C. Tubayan

Moody’s says fresh rate hike should help temper ‘imported’ inflation

By Melissa Luz T. Lopez
Senior Reporter
ADDITIONAL rate hikes from the central bank will temper exchange rate movements and outbound capital flows, Moody’s Investors Service said, against a backdrop of a resilient and fast-growing economy.
In its annual credit update, the debt watcher said the Philippines shows “high” economic strength and is expected to weather the “temporary” episode of faster inflation.
“Bangko Sentral ng Pilipinas (BSP) the Philippines’ central bank, has already hiked policy rates twice to anchor inflation expectations. Tighter monetary policy will also serve to temper capital outflows, peso depreciation and, hence, imported inflation,” Moody’s said in the report sent to reporters yesterday.
The peso has been trading weaker than P53 per dollar since mid-June, but has been gaining strength in the past few days amid bets that the BSP will raise benchmark interest rates for the third time this year in next week’s policy review.
At the same time, the debt watcher said that it “expects the rise in prices since the beginning of 2018 to be temporary and not as a result of excessive overheating risks.”
Moody’s made these remarks after it affirmed the Philippines’ credit rating at “Baa2” with a “stable” outlook last month, keeping the country one notch above minimum investment grade. It took stock of the fast-growing economy and improving revenue base, but flagged rising prices and “domestic political developments” — particularly the planned shift to a federal government system — as key risks.
Credit analysts also noted that recent trends in commodity prices present a major challenge for policy makers in terms of managing inflation pressures, but pointed out that these remain “transitory.”
“We also do not expect the acceleration in the pace of growth in oil prices earlier this year to be sustained,” Moody’s said, noting that it expects inflation to return to the 2-4% target range by next year.
Inflation has shot beyond target to average 4.3% last semester, hitting a nine-year high of 5.2% in June.
For July, the central bank said prices may have picked up even faster by 5.1-5.8% year-on-year, which if realized will mark a fresh multi-year peak.
Simon Chen, senior analyst at Moody’s, earlier said that future rate increases from the central bank are likely to be “gradual” and “modest,” which will be manageable for both banks and borrowers as far as loan pricing is concerned.
NOMURA SEES 50 BP HIKE
In a separate market report, Nomura economists said they expect the Monetary Board to raise key interest rates by 50 basis points (bp) next week, taking cue from BSP Governor Nestor A. Espenilla, Jr.’s signal of a “strong follow-through” in monetary policy action next week.
“We read this as a step up from a ‘measured’ response, which was the language BSP officials used ahead of previous 25bp rate hikes,” the bank analysts said yesterday ahead of the Aug. 9 policy review.
“We put a lot of weight in Governor Espenilla’s comments because he tends to be deliberate in his signals, and — as decisions at the last two meetings demonstrate — there is ultimately follow-through action even though decisions are collective on the part of the Monetary Board.”
Meanwhile, Moody’s gave the Philippines a better score in terms of managing the economy.
“We set the Philippines’ institutional strength score at ‘Moderate (+),’ one notch above the indicative score of ‘Moderate,’ to reflect its track record of fiscal and monetary policy effectiveness,” the debt watcher said.
“The government’s demonstrated ability to pursue its economic and fiscal reform agenda in the face of heightened political noise informs our assessment, despite a deterioration in the Worldwide Governance Indicators.”
It noted that the Duterte administration was able to deploy “considerable” political capital to push key reforms, resulting in enactment of the first of up to five planned tax reform packages and the Ease of Doing Business law, as well as increased infrastructure spending and expanded social protection programs.
“Fiscal authorities have continued to focus on revenue reform, budgetary control, and proactive debt management, which have combined to result in lower debt and debt servicing costs over the past decade,” Moody’s noted.
“Political noise has not resulted in a significant reduction in the President’s approval ratings, negative spillovers to business and consumer sentiment, or a decrease in the government’s ability to advance its socioeconomic reform agenda.”
The credit rater gave the Philippines a “high” score for economic strength in the face of rising prices, a volatile external financial market and local political noise. Moody’s expects the Philippines to remain a growth leader in Asia, attracting even more foreign investments that, in turn, will support further expansion.
Moody’s expects the economy to expand by 6.8% in 2018, which would be faster than last year’s 6.7% but will fall short of the state’s 7-8% goal.

AEV’s first-half net income slips on forex losses

ABOITIZ EQUITY Ventures, Inc. (AEV) reported a first-half net income of P10.1 billion, lower by 2% compared with the P10.3 billion it recorded a year ago as the holding firm continued to suffer non-recurring foreign exchange losses on its dollar-denominated debt.
“Our first-half results reflect challenges that continue to test the resilience of our diversified portfolio,” said Erramon I. Aboitiz, AEV president and chief executive officer, in a statement on Wednesday.
AEV’s biggest income contributor, its power business, reported a 6% drop in income to P9.1 billion from P9.7 billion after booking non-recurring foreign exchange losses.
For AEV, the net foreign exchange losses reached P467 million, down from P495 million a year ago. Aboitiz Power Corp. placed these losses at P1.4 billion, bigger than last year’s P744 million.
During the semester, power contributed 68% of AEV’s income, followed by banking and finance at 22%, food at 22%, food at 6%, land at 3% and infrastructure at 1%.
“We continue to grow the business with the capacity additions and the expanding distribution business,” said Antonio R. Moraza, AboitizPower president and chief executive officer.
“Energy sales are up; however, margins are getting tighter due to competition. This is a reality that we have prepared for — and our organization is equipped to compete,” he added.
AboitizPower’s income contribution to AEV in the first-half dropped nearly 7% to P7 billion from P7.5 billion in the same period last year.
In contrast, UnionBank of the Philippines’ contribution rose by 9% to P2.3 billion from P2.1 billion. The bank and its subsidiaries recorded a net income of P4.7 billion, up 9% from P4.3 billion a year ago.
Pilmico Foods Corp. and its subsidiaries reported a net income of P662 million in the first semester, lower by 8% compared with P717 million a year earlier, largely because of higher raw material costs.
Aboitiz Land, Inc. posted a net income of P283 million, 40% higher than the P202 million recorded last year. Revenues for the period hit P2 billion, rising 30% from a year ago, due mainly to the industrial business having recognized more hectares sold.
Meanwhile, Republic Cement and Building Materials, Inc.’s income fell by 91% to P44 million from P494 million. The decline came because of the rise in fuel and power costs, which offset the modest growth in prices while demand stayed as is.
“For the rest of the year, we remain confident in ably executing our focused strategy. We look forward to more opportunities as well as the contributions of newly-acquired businesses as we stay true to our purpose of driving change for a better world by advancing business and communities,” Mr. Aboitiz said.
For AboitizPower, without the one-off losses its core net income was “flat” in the first- half at P10.5 billion. It recorded consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) of P24 billion, up 10% from the P21.8 billion a year ago.
Its consolidated EBITDA for the generation and retail supply business was at P20.2 billion, up 9% from the P18.5 billion recorded after the new contributions from Pagbilao Energy Corp.
“Higher contracting levels versus last year also contributed to the higher EBITDA. These upsides were partially offset by the lower contributions coming from the company’s hydro plants due to lower hydrology during the first six months of 2018,” the company said.
AboitizPower’s capacity sold for the period increased 8% to 3,319 megawatts (MW) from 3,086 MW, driven by new capacities sold from the Pagbilao plant.
For the first-half, the consolidated EBITDA of the distribution business was P3.9 billion, up 13% from the P3.4 billion. Energy sold during the period rose 7% to 2,719 gigawatt-hours (GWh) from 2,546 GWh.
The company said Improving margins also contributed to the increase in consolidated EBITDA during the period in review, resulting in a 14% increase in the income contribution of the distribution business to P2.1 billion.
On Wednesday, shares in AEV went up P2.35 or 4.10% to close at P59.70 each, while those of AboitizPower were higher by 75 centavos 2.02% at P37.95 apiece. — Victor V. Saulon

A Kadayawan kind of feast at the Seda Abreeza


By Marifi S. Jara, Mindanao Bureau Chief
THE ANNUAL celebration of Davao City’s Kadayawan Festival during the month of August is timed with nature’s calendar.
It is within the period of what has historically been the peak of harvest season, not just in Davao, but also in other parts of Mindanao where such fruits as durian, mangosteen, and pomelo grow.
While modern agricultural practices have allowed for the year-round supply of the fruits, albeit in smaller quantities, the impact of climate change has also been disrupting crop cycles.
“In 2015, there was so much durian, but in 2016 we were hit by drought and there was so much rainfall in 2017. We are recovering this year,” Candelario B. Miculob, president of the Davao City Durian Industry Council (DCDIC) President said in a media forum earlier this month. (http://www.bworldonline.com/growers-seek-to-tap-china-demand-for-frozen-durian/)
“We are expecting a lot of production this year… Mangosteen is coming also as well as lanzones and rambutan. There’s a lot of fruits this year, luckily,” Mr. Miculob said.
In this anticipated bumper year, the Seda Abreeza hotel is celebrating its 5th year with dishes that honor the agricultural goods that Davao takes pride in.
“The region’s food products are an attraction of the city,” Seda Abreeza General Manager Kennedy V. Kapulong said, enumerating the varied fruits that do not readily grow in other parts of the country, the seafood from the Davao Gulf, and the Malagos chocolates and cheeses that he calls the “rising stars” in culinary art. (http://www.bworldonline.com/goat-cheese-could-be-next-big-venture-for-malagos-group/)
“Fruits are one of the attractions of Seda Abreeza in our breakfast buffet,” he said.
The ala-carte menu of the hotel’s Misto restaurant includes their own version of the tuna kinilaw (ceviche), Malagos dark chocolate cheesecake, and durian panna cotta.
For this year’s Kadayawan, the Misto kitchen is serving up specials such as a twist on its popular crispy prawns with Misto chili sauce by adding mangosteen to the dip.
Another main course special for the festival season is pan-seared red snapper filler with a generous dressing of Malagos blue goat cheese sauce.
The normally big serving of Malagos dark chocolate cheesecake has been tapered, and paired with a banoffee tart with a real banana slice inside.
“Davao’s culinary offerings have become particularly exciting in the past few years since some Davao exports gained prominence on the world food stage,” Mr. Kapulong said.

PT&T appeals for rehab exit

THE PHILIPPINE Telegraph and Telephone Corp. (PT&T) has appealed to the regional trial court (RTC) of Makati City to be allowed to leave its court-assisted corporate rehabilitation to proceed with its operations.
In a disclosure to the stock exchange late on Tuesday, the telco company said it filed a request to the Makati RTC on Monday to exit rehabilitation, given that it will be subjected to the requirements as outlined in the approved Rehabilitation Plan.
“Part of the compliance is for PT&T to conduct a stockholders’ meeting to increase its authorized capital stock. This will enable PT&T to pay its debts through debt-to-equity conversion as mandated by the approved Rehabilitation Plan,” it said.
PT&T is currently lobbying for its 14-year rehabilitation plan for its P8.8-billion debt at the Supreme Court. The rehabilitation plan was reversed in a decision by the Court of Appeals in May 2017. But in its recent appeal, it said it wants to leave the program.
“The exit from rehab is well within the plan of our new shareholders and another proof point that PT&T is serious in it’s intention to be a major player in the Philippines telecommunications industry,” PT&T president and chief executive officer James G. Velasquez said in a statement on Wednesday.
The telco company, which was once PLDT, Inc.’s biggest rival in the telco industry, has expressed its interest to participate in the government’s search for the so-called “third telco player.”
“PT&T’s exit from receivership enables the company to raise additional capital in the stock market to fund our expansion plans, both in fixed broadband and beyond,” PT&T chief operations officer Miguel Marco A. Bitanga said in the statement.
In March, the company signed an agreement with state-owned National Transmission Corp. (TransCo) to allow for the use of the government’s national fiber optic backbone facility.
PT&T has scheduled its annual stockholders’ meeting on Sept. 14. — Denise A. Valdez

Nick Malgieri: A date with a pastry chef

WHILE PEOPLE say cooking is a relaxing habit, we don’t think it could compare to the act of baking. Sure, measuring and mixing might make you sweat a bit, but once you pop your confection in the oven, all you’ll have to do is wait, cool, and taste. It’s not that it’s easier, but the longer, more stretched-out timeline allows one to really immerse oneself in the act.
A person who might embody this relaxing activity is Nick Malgieri, a New York-based pastry chef who has been baking since the late 1970s. Mr. Malgieri has been honored several times for his baking and his cookbooks, awarded the Chevalier d l’Ordre de la Channe du Valais for promoting Swiss gastronomy, and receiving the Philadelphia Toque Award in 2006. He has written 13 cookbooks, some of which have received awards, including the James Beard Foundation cookbook award for Best Baking Book of 1995. He also appeared on TV next to Martha Stewart and the legendary Julia Child. Despite all this, he speaks with an air of a grandfather delighted with the achievements of his progeny, and enters a room with the same aura as a birthday cake: it doesn’t announce itself, has a soft glow around it, and it’s something we’ve wanted and waited for.
Mr. Malgieri is in Manila this week for a cooking demo titled “A Date With Chocolate” at the World Food Expo at SMX Convention Center at the Mall of Asia complex from 10 a.m. till 1 p.m. on Aug. 3.
“People love it,” he said of chocolate in an interview with BusinessWorld during a press conference earlier this week at The Conrad Manila. It’s supposed to stimulate the pleasure sensors of the brain, but I don’t know.
“Things that are made with chocolate, most of them taste really good!” he said. “I like chocolate. I like the smoothness; it feels good in your mouth.”
Of course, with a career as long as his, one picks up many influences along the way, like being mentored by Albert Kumin, the head pastry chef in the White House during the Carter administration. “He’s a very, very hard worker,” he noted. However, an earlier influence was his grandmother, an Italian immigrant who spoke the Neapolitan dialect. “I have a recipe in my grandmother’s handwriting, for something that I’ve never made. I have it framed with a picture of her.” His earliest memory of food was his grandmother’s pastina, made with milk, sugar, and cinnamon. “I hated it,” he recalls with some laughter.
Harried home cooks today have the luxury of ordering a cake from shops or some other great baker, but judging from Mr. Malgieri’s cookbooks, it means that some people would still find the time and energy to bake today. “I think it’s relaxing. People want to have that pleasure being able to do it,” he said. Of course, he warns about getting too carried away: “Anytime you start to go to the psychotic edge of something, it’s not pleasurable for anybody.”
“It’s satisfying to make something and have it turn out well.” — Joseph L. Garcia
The World Food Expo runs from Aug. 1 to 4 at the SMX Convention Center and at the World Trade Center.

Huawei passes Apple in global market share for the first time

HUAWEI Technologies Co. pulled ahead of Apple, Inc. to claim the no. 2 position in global smartphone shipments in the second quarter just behind Samsung Electronics Co., solidifying the rise of Chinese competitors.
Global Market Share of Top Smartphone Makers
Huawei shipped 54.2 million phones in the quarter, 41% more than a year earlier, to jump ahead of the iPhone maker for the first time, according to market research firm IDC. The telecoms giant accounted for 16% of the market, compared with 21% for South Korea’s Samsung and 12% for Apple. Xiaomi Corp. and Oppo, both based in China, rounded out the top five.
Chinese smartphone makers have been gaining influence as their domestic market grows and they expand abroad. Huawei has pushed into Europe and Africa, though it’s failed to crack the massive US market. Apple tends to sell iPhones at higher prices than its rivals and profits from services like iTunes, which helped it top earnings estimates for the quarter.
“The importance of Huawei overtaking Apple this quarter cannot be overstated,” said Ben Stanton, a senior analyst at Canalys, which also reported the shift in quarterly market share. “It is the first time in seven years that Samsung and Apple have not held the top two positions. Huawei’s exclusion from the US has forced it to work harder in Asia and Europe to achieve its goals.”
Canalys pointed out that the second quarter has historically been a weak one for Apple. The Cupertino, California-based company introduces new phones late in the year, then usually sees sales climb in the fourth and first quarters. That momentum for the iPhone X, which starts at $1,000, wasn’t sustained into the second quarter, the firm said.
Globally, the smartphone market continued its slowdown with shipments slipping 1.8% for the quarter to 342 million units. The number of smartphones shipped in 2017 fell 0.3%, according to IDC, the first decline after years of strong growth.
Samsung earnings took a hit from the sluggish market when it reported earnings Tuesday. The South Korean company, which makes memory chips and screens as well as smartphones themselves, reported net income that fell short of analysts’ estimates.
“Huawei’s momentum will obviously concern Samsung, but it should also serve as a warning to Apple, which needs to ship volume to support its growing services division,” Stanton said in a statement. “If Apple and Samsung want to maintain their market positions, they must make their portfolios more competitive.” — Bloomberg

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