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Asia stocks open lower on fears over US growth

Tokyo — Asian markets opened lower Monday, following Wall Street’s downbeat finish last week on fears that US economic growth has peaked, and with investors watching the Bank of Japan’s meeting.
On Friday, data showed the US economy expanded at an annual rate of 4.1 percent in the second quarter, matching analyst expectations.
The rise was due in part to strong consumer spending and a trade-war driven bump in exports. It was the fastest growth in almost four years.
But despite US President Donald Trump hailing the figure as an “American economic miracle”, US investors were unimpressed, sending stocks lower on a sense that the figures represent a peak.
US shares also took a battering from a largely disappointing round of earnings, with Exxon Mobil, Intel and Twitter all falling.
In Asia stocks trading Monday, Japan’s benchmark Nikkei 225 index opened down 0.46 percent, while the broader Topix index slipped 0.26 percent.
Investors are closely watching the Bank of Japan’s two-day meeting starting Monday, with widespread speculation about whether the central bank may be looking to alter its ultra-loose monetary policy.
Reports earlier this month suggested minor changes were possible in the bank’s bond-buying programme, as it seeks to offset its effects on the banking sector.
The BoJ has engaged in massive bond-buying as part of a programme to push the country’s inflation rate up to 2.0 percent, seen as necessary to turbocharge the world’s third-largest economy.
But the goal has proved stubbornly elusive and experts said the BoJ might reset expectations on when it could be achieved.
“The BoJ will most likely dole out a plan for eventually adjusting stimulus,” wrote Stephen Innes, head of APAC trading at OANDA.
He cited a report suggesting the bank would revise its inflation forecast down, and “forgo any immediate yield curve measure”.
China’s stock markets also opened lower as the yuan continued to weaken, with the benchmark Shanghai Composite Index opening down 0.06 percent, though it picked up.
Markets in Sydney and Seoul also opened lower.
In currency trading, the dollar was rangebound after the US GDP data announcement and with investors focused on monetary policy meetings by the BoJ and other central banks this week.
“It’s going to be a ‘central-bank’ week… and the market is paying close attention to the BoJ,” said Masakazu Satou, senior analyst at Gaiame Online.
“I don’t think the BoJ will change its policy dramatically, but it may send a message indicating its willingness to mitigate the negative impact of the current policy,” Satou told AFP. — AFP

UnionBank’s first-half profit up by 8%

UnionBank of the Philippines’s earnings rose in the first half due to higher interest rates.
In a disclosure to the bourse, UnionBank reported its net income for the first six months of 2018 reached P4.7 billion, 8% higher than the P4.4 billion recorded in the same period last year.
Net revenues grew by 9.1% to P12.7 billion from P11.7 billion a year ago.
Its total loans increased by 18% year-on-year to P313 billion, with retail loans accounting for 33% of total loan portfolio. This boosted its total assets to reach P623.2 billion, up by 12.8% year-on-year from P552.6 billion in the same period a year ago. Assets were mainly supported by deposits at Php452.9 billion.
“We are ahead of our target for the year despite margin compression in the first half due to higher interest rates and regulatory compliance. For the remainder of the year, we expect recurring income to drive profitability. We anticipate margins to improve as loan rates start to catch-up against deposit cost,” said Jose Emmanuel U. Hilado, UnionBank Treasurer and CFO.

Storm of news to hit global economy this week before August calm

People charged with running or monitoring the world economy are set for a busy week before those in the Northern Hemisphere get to enjoy their summer vacations.
Central bankers in the US, Japan, the UK, Brazil and India all meet to set their respective monetary policies at a time when Eric Oynoyan, senior European interest-rate strategist at BNP Paribas SA, is telling clients that “central banks are back in the bond market driving seat.”
Here’s what to watch for:
TUESDAY
Despite speculation it could soon flesh out its plan for eventually adjusting stimulus, all 44 economists surveyed predict the Bank of Japan will maintain the current setting on interest rates. Governor Haruhiko Kuroda also will unveil fresh forecasts. In China, a purchasing manager index is expected to show manufacturing expanded at a slower pace again July. A wave of statistics in the euro area is predicted to show inflation ticking up above 2% in France, unemployment staying put in Germany and the economy slowing slightly in the second quarter in Spain and Italy. In the US, it’s the end of the review period for potential tariffs on $16 billion of Chinese goods.
Market View: Recent media reports on potential Bank of Japan changes already helped spur a slight steepening of developed-market yield curves. As a result, investors will be on the lookout for any hint of a tweak that could put the brakes on the longer flattening trend that has dominated major bond markets.
WEDNESDAY
US Federal Reserve Chairman Jerome Powell and colleagues meet with all but one analyst predicting no change in rates. By contrast, onlookers are bracing for the Reserve Bank of India to raise its benchmark as emerging market currencies get buffeted, although those in Brazil are betting it won’t shift from a record low of 6.5%. The US Treasury Department delivers details of its bond selling with Wall Street analysts readying for an increase in supply. Also in Washington, the U.S. Agriculture Department stops giving crop data to media organizations under embargo.
Market View: Traders will be looking to see if the Fed firms up expectations for a rate hike in September and clues on just how high rates might ultimately go. Meanwhile, the market will be watching whether Treasury, in its attempt to fund a widening budget deficit, opts to raise the five-year auction size by $1 billion every month, rather than once a quarter.
THURSDAY
The Bank of England is expected to raise its key rate to 0.75 percent, the highest since 2009, although not every policy maker may back the decision as risks of a disorderly Brexit mount. Mexico isn’t seen changing monetary policy as it assess the impact of recent tightening.
Market View: While the market has priced around 80 percent odds of a rate hike at this BOE meeting, traders will be looking for any signs that it won’t be a one-and-done as Brexit concerns weigh on the pound. There will be close attention on the vote count too.
FRIDAY
The first Friday of the month means the US publishes its non-farm payrolls data. The latest Bloomberg survey points to payrolls rising 193,000 in July and unemployment dipping to 3.9 percent. Also of interest amid the trade war will be the U.S. trade balance, which is seen swelling to a deficit of $46.1 billion.
Market View: The jobs report will be keenly watched as always, but while the last one weighed on the dollar, it’s worth noting that Treasury market reaction in recent months has tended to be relatively fleeting. With the U.S. unemployment rate near its lowest levels in nearly two decades, a key focus will likely be average hourly earnings and what that might say about inflation more broadly. — Bloomberg

The spirit of going global

Over the past years, Emperador Inc. has successfully strengthened its position in the liquor industry. It is able to sustain its leadership in the Philippine market, and has made bold steps to explore global routes through acquisition of major foreign brands. Every year, the company always meets the challenges brought by the extremely competitive spirits industry, which deserves a good toast.
Emperador is off to a good start this 2018 as it recorded a positive growth from its international operations – Scotch whisky and Spanish brandy – in the first quarter. The single malt whisky business, in particular, continues to enjoy greater demand globally. Similarly, the brandy business continues to geographically expand its reach on the back of greater distribution, visibility, and availability.
In the first three months of the year, the company’s net income went up 6% to P1.58 billion, and its revenue likewise increased 8.5% to P9.7 billion, compared from the figures it recorded in the same period in 2017.
Emperador is a holding company that operates an integrated business of manufacturing, bottling and distributing distilled spirits and other alcoholic beverages from the Philippines and Europe. It owns Emperador Distillers, Inc. (EDI), Scotch whisky maker Whyte and Mackay Group, and Bodegas Fundador in Spain.
The company’s consolidated product portfolio is comprised of domestic and foreign brands led by Emperador Light, Emperador Deluxe, Andy Player Whisky, Smirnoff Mule, The Bar, The Dalmore and Jura Scotch single malt whiskies, and Fundador, among others.
Through EDI, which is the Philippines’ largest liquor company and the world’s largest brandy producer, Emperador has established its identity in the Philippine alcoholic beverages business. Aside from sustaining its dominance, Emperador is expanding its brand footprint in the global market.
It was in early 2013 when the company first established its roots outside the country when it found ground in Spain with the acquisition of Bodega San Bruno, and an investment in Bodega Las Copas in the following year.
From Spain, it has reached United Kingdom when it acquired Whyte and Mackay in October 2014. This move has given the company the chance to enter the global Scotch whisky business.
The company returned its sight in Spain with the acquisition of brandy and sherry business under Bodegas Fundador in 2016 as well as the acquisition of Domecq brandy, and wine brand portfolio and related assets in 2017.
The company’s efforts to acquire new assets not only allowed Emperador to grow its portfolio outside the country, they also provided platform for domestic premiumization, which the company says is a “key to long-term growth.”
“While there’s a need to solidify and future-proof dominance in local liquor, there’s also a great potential in higher price points, and that’s where other brands like Tres Cepas and Fundador come in, for instance,” Emperador said. “Premiumization is unique to Emperador in general, since local competitors don’t have a broad array of products that capture various price points.”
Within its premiumization focus, it has successfully launched Fundador Supremo 12YO, 15YO, and 18YO in the Asian markets through the Duty Free channel.
Fundador Supremo 18YO, which was named “Brandy of the Year” at the 2017 China Wines and Spirits Awards, spearheaded a new Super Premium category within the brandy segment that targets new consumers of the single malt and cognac segments.

IMF expects wider current account gap

THE International Monetary Fund (IMF) expects the Philippines’ external position to log a bigger deficit this year, although the central bank chief said the level will remain manageable and supportive of further economic growth.
The IMF’s annual health check on the Philippines showed the multilateral lender saw the current account deficit settling at 1.5% of gross domestic product (GDP) this year, which if realized would exceed the 0.9% of GDP forecast of the Bangko Sentral ng Pilipinas (BSP). It will likewise widen from the gap posted in 2017 at 0.8% of GDP at about $2.518 billion.
The current account measures fund flows in goods and services trading. A deficit means more funds left the country compared to what went in.
The IMF said a wider current account deficit reflects “increased imports of capital goods and raw materials” that will be matched by a “more than adequate” stash of dollar reserves amounting to $77.525 billion as of end-June.
‘THERE’S NOTHING WRONG’
BSP Governor Nestor A. Espenilla, Jr. sought to allay any concern, saying that the expected bigger gap is not all bad for the Philippines.
“I think the way to usefully look at it is not just look at the US dollar level of it. Talagang lalaki ‘yun (It will really grow) but the economy is also growing. From a policy standpoint, we are looking at that in terms of deficit size to GDP — that’s the defining element of manageability,” Mr. Espenilla told reporters last week when sought for comment.
“There’s nothing wrong with a deficit if there is still financing for it in a voluntary way,” the BSP chief added, noting that increased imports are often accompanied by increased foreign direct investments that fuel greater demand for raw materials and capital goods.
The BSP expects the current account to balloon to a $3.1-billion deficit this year, assuming 11% growth in imports versus a 10% increase in export of goods.
The current account settled at $208-million deficit in the first quarter, narrower than the $860-million deficit logged in last year’s first three months.
Several analysts have blamed the country’s current account deficit for the persistent weakness of the peso, which has lately been trading at P53 to the dollar.
However, central bank officials said the “modest” deficit should not be taken negatively, as the increased imports will support productive activities, spur business expansions and support infrastructure development. — Melissa Luz T. Lopez

State mining body to review audit findings

THE MINING Industry Coordinating Council (MICC) will convene on Wednesday to discuss the final report of a technical review team on the mines ordered closed or suspended last year by the Department of Environment and Natural Resources (DENR).
“They will discuss it on Aug. 1,” Finance Undersecretary Bayani H. Agabin said in a mobile phone message on Sunday when asked when the MICC will meet to review the final report.
This was after the MICC met on June 21 on results of the initial review that cleared 23 of the 27 mines checked for compliance with regulations.
“We hope the reports are approved,” said Mr. Agabin.
However, the Finance official said earlier that the number of those who failed or pass since the initial review may change.
Mr. Agabin said that after the MICC approves the report, it will recommend the document to the DENR and the Office of the President for implementation.
Former Environment Secretary Regina Paz L. Lopez in February last year ordered to either close or suspend 27 of the country’s 41 metal mines due to various violations of environment regulations, especially for being located in watersheds.
It was only in March that an independent review team of mining experts formed by the MICC began a three-month review.
The mines were assessed on various criteria such as whether the mining firms involved had secured necessary permits to operate a mine, their required rehabilitation efforts, social development programs, whether they have enough capitalization, and their contribution of total mining operations to the host community.
The MICC said it will subject all other mines in the country to a similar review.
President Rodrigo R. Duterte in his third State of the Nation Address on July 23 reiterated his strong stance against irresponsible mining, warning of “restrictive policies” like the ongoing open-pit mining ban despite the MICC’s recommendation to lift the order.
The country’s mining sector has been reeling from an unfriendly policy environment since former president Benigno S.C. Aquino III issued Executive Order No. 79 in July 2012 that imposed a moratorium on new mining projects until a new mine revenue sharing scheme is enacted. — Elijah Joseph C. Tubayan

Cavite government’s Sangley airport plan gets green light from Transportation dep’t

THE DEPARTMENT of Transportation (DoTr) has given the green light to the Cavite provincial government’s plan to build an airport at the former US naval facility at Sangley Point, Cavite.
“We conveyed to them that we have no objections to their proposal, under the condition that they have to coordinate with the Manila International Airport Authority (MIAA) and the Civil Aviation Authority of the Philippines on the utilization of the air space,” Transportation Undersecretary for Planning Ruben S. Reinoso, Jr. said in a telephone interview on Sunday, adding that the project should not require a sovereign guarantee.
“Because it’s a transport project for an international airport, they need the endorsement of the DoTr. They cannot proceed on their own… It’s a go, so they now have to comply with the requirements for approval.”
The P552.018-billion project has two phases, according to the document Cavite’s provincial government submitted to the DoTr, with the first segment estimated to cost some P208.487 billion and the second, P343.531 billion.
With no objection from the department, Mr. Reinoso said the next step is for the provincial government to secure endorsement of the Philippine Reclamation Authority for the planned reclamation work and secure final approval of the National Economic and Development Authority (NEDA) Board that is led by President Rodrigo R. Duterte.
PRIORITY
On the separate $12-billion unsolicited proposal from private group Sangley Airport Infrastructure Group, Inc. — a consortium formed by Solar Group’s Wilson Y. Tieng and tycoon Henry T. Sy, Sr. — Transportation Secretary Arthur P. Tugade told reporters in Clark Freeport on July 17: “Under the rules, kung merong dalawang ‘yan, our priority is government to government (Under the rules, if there are two proposals, our priority is government to government).”
The Cavite government submitted its proposal for a Sangley international airport to the DoTr in February.
The planned airport is one of the ways the government is considering to decongest Ninoy Aquino International Airport (NAIA), which itself will be rehabilitated and upgraded in order to handle more passengers and more flights.
The proposal of the consortium of seven major companies to rehabilitate and upgrade NAIA is now up for approval by the MIAA board, which will then endorse it to the NEDA board for final green light. It will then undergo a Swiss challenge, opening it to competing proposals from other groups. The seven companies that comprise the NAIA consortium are Aboitiz InfraCapital, Inc.; AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; JG Summit Holdings, Inc. and Metro Pacific Investments Corp.
Aside from Sangley, the government also plans to redirect more passengers to Clark International Airport in Pampanga whose operation and maintenance contract is targeted for award in August.
San Miguel Corp. has also submitted a proposal to build, operate and maintain an international airport in Bulacan at an estimated cost of about P735 billion.
The current government has embarked on a more aggressive infrastructure development drive in a bid to fuel overall economic growth to a faster 7-8% pace till 2022, when Mr. Duterte ends his six-year term, compared to a 6.3% average in 2010-2016 under former president Benigno S. C. Aquino III. — Denise A. Valdez

Poland may take Filipino workers — minister

WARSAW — Poland, whose right-wing government opposes taking in migrants, may have to look to Filipino workers to cover a growing labor shortage hurting the economy, a senior official said Saturday.
“We are on course to conclude an agreement. I hope that in the autumn we will be able to at least sign a preliminary accord” with the Philippine authorities, Deputy Labor Minister Stanislaw Szwed said according to a PAP news agency report.
Mr. Szwed noted that Poland and the Philippines were both Roman Catholic countries and so shared many cultural values.
Poland was in particular looking to attract qualified workers, in the information technology, medical and construction sectors, he added.
According to analyst forecasts, Poland by 2030 will be short of four million workers, partly the result of continued emigration of its own workforce to other EU countries and partly due to a low birth rate.
Up to now, Poland has relied on neighboring Ukraine to fill the gap, with a million Ukrainians in the country already and up to another 300,000 expected in the next few years.
The Philippines is a major exporter of workers, with millions employed abroad in every line of work and sending home billions of dollars crucial to the economy. — AFP

SMC to ‘invest heavily’ in renewable energy

DIVERSIFIED conglomerate San Miguel Corp. (SMC) plans to build up to 10,000 megawatts (MW) of renewable energy facilities in the next 10 years, adding to its existing installed capacity coming mostly from traditional coal and gas power plants.
“San Miguel is going to invest heavily on renewable energy,” Ramon S. Ang, SMC president and chief operating officer, told reporters.
Among renewable energy resources, he identified hydropower, wind, ocean tide and battery storage as the company’s possible investment ventures. He declined to disclose details on which of these will corner the biggest share, saying competitors might beat him in the projects.
“We predict to invest up to 10,000 megawatts in the next 10 years,” Mr. Ang said.
He said the required investment in renewable energy would be substantial as these remain costlier to build than a coal-fired power plant, except for solar energy. He brushed off solar energy, saying its availability is limited as experienced by other countries that had to resort to other sources to maintain the delivery of the required power capacity.
“The idea is to put up as many as possible,” Mr. Ang said, adding that each of the target projects has a good potential even the small ones.
“Sana (Hopefully), each hydro can produce 1,000 MW,” he said.
Mr. Ang said initial studies have shown good “wind profile” in an area in Luzon, which the company is considering to build a wind farm. He said a wide area within the country’s main island remains viable for a wind energy project.
“We have a report already — a very good wind profile, a very big capacity can be installed. And the land for that project is already owned by San Miguel,” he said.
SMC, through its energy subsidiaries, has an installed capacity of around 4,000 MW after the addition of the 630-MW Masinloc coal-fired power plant, which it bought for $1.9 billion in December last year from the equity holders of the plant’s owner Masin-AES Pte. Ltd.
In the same media briefing, Mr. Ang gave an update on the case between SMC unit Petron Corp. and state-led National Oil Co. (PNOC).
In October last year, Petron Corp. filed a case against PNOC for breach of a binding and compulsory sale-leaseback contract, which the listed company said threatens to hurt its operations, its shareholders and the Philippine economy.
Petron had asked the Mandaluyong Regional Trial Court for the issuance of a temporary restraining order to “stop PNOC from performing acts aimed at ousting Petron of its leased properties.” The company sought the court’s help over PNOC’s “threats, breach of sale and leaseback agreement.”
Petron said it had offered to negotiate the agreement with PNOC as early as 2016, but it had been constrained to seek judicial intervention after the government company said earlier last year that it would terminate the lease.
Mr. Ang said depending on the outcome of the case, he might elevate the legal dispute for international arbitration.
The case stemmed from a notice from PNOC directing Petron to abandon and clean up the contested sites on or before expiration of the lease, which is in August this year. Petron said PNOC had offered the properties covered by the leases to interested new independent oil companies, “in total disregard of the rights of Petron.”
Petron has existing lease agreements with PNOC for the sites of its $3-billion refinery in Bataan, 24 bulk plants and 67 gasoline stations. The company supplies more than a third of the country’s petroleum requirements.
Mr. Ang said Petron’s leased properties are originally owned by it and acquired over several years to be used for its refinery, distribution and sales operations. Petron, however, was compelled to give up its land to PNOC in 1993 to comply with the requirements of its privatization.
“To secure foreign and local investments in Petron and ensure stability of its operations, the transfer of the properties was enabled through a deed of conveyance and lease agreements that guaranteed its long-term and continuous use by Petron,” the company previously said. — Victor V. Saulon

State bank eyes bigger stake in fixed-income bourse

LAND BANK of the Philippines expects to buy more shares in the fixed-income bourse once the two have signed a share purchase agreement (SPA) in the coming weeks.
Alex V. Buenaventura, the state-run bank’s president and chief executive officer, said the signing of the SPA with the Philippine Dealing System Holdings Corp. (PDSHC) had been pushed bank because of “internal procedures.”
“Hindi pa (Not yet). We have procedures in finalizing it,” he said in an interview during a reception hosted by the Bangko Sentral ng Pilipinas on Friday.
Earlier this month, Mr. Buenaventura said shareholders representing 43% of PDSHC had accepted the bank’s offer to buy the bourse’s shares, with the SPA expected to be signed around that time.
He said that the lender had not received additional sellers who wish to sell their shares in PDSHC.
“Wala pang (There are no) additional sellers on top of the 43% that we got three weeks ago,” he said.
He noted that shareholders had signed nondisclosure agreements to proceed with further negotiations before the SPA for shares in the PDSHC is finalized.
The bank’s chief executive added that he expects the SPA to be signed within the next two weeks as the sellers are getting weary.
“I don’t want to give a deadline but for me, my deadline is within the next few weeks because the sellers are getting apprehensive,” Mr. Buenaventura said.
“I personally hope that we can do this within the next two weeks.”
In June, the bank said the Philippine Stock Exchange (PSE), which had earlier planned to take over the PDSHC, has indicated interest in selling its shares.
The bank offered to buy the shares in the fixed-income market at P360 per share, higher than the PSE’s P320 apiece offer in its previous SPAs that already lapsed.
However, only one shareholder has accepted the bank’s offer in April. Mr. Buenaventura said that once PSE agrees to the terms, others may follow.
The government wants to take at least a majority stake in the fixed income bourse through the bank to expedite the development of the capital markets and to improve the bank’s finances to deliver more robust credit for farmers and small enterprises.
The state lender currently owns 1.56% of PDS through the Bankers Association of the Philippines, which holds a cumulative 13.26% share for itself and its member banks.
The planned PSE-PDS merger had dragged on due to the PSE’s failure to secure exemptive relief from the Securities Exchange Commission on the 20% single-industry ownership limit. — Karl Angelo N. Vidal

RFM counts on flour mill upgrade to remain competitive as costs rise

RFM Corp. is banking on the upgrade of its flour mills to help it stay competitive in the market, as it continues to see rising prices of raw materials due to the weakening peso.
RFM Chief Financial Officer Enrique Oliver I. Rey-Matias said the capacity upgrade would improve competitiveness against other players, especially at a time when input costs are rising due to the weaker peso.
The listed ice cream and flour manufacturer earlier said it was investing P240 million to enhance the quality of flour it produces. RFM imports the wheat it uses to make flour from the United States, Australia, and Canada, among others.
“So essentially may (there are) ups and down sa (in the) price of raw material. Despite the ups and downs, price of flour is steady. Bottomline, there’s more supply to meet the growing demand. In that respect, you see more competition,” Mr. Rey-Matias told reporters after the company’s annual shareholders’ meeting in Mandaluyong last week.
“Kaya kami nag-upgrade ng flour (We upgraded our flour) so we can maintain our price and increase our volumes,” Mr. Matias said.
RFM’s share in the local market for flour is currently below 10%.
To offset the weaker performance of its flour business, RFM is focusing on strengthening its ice cream business, citing the potential to tap markets in the country, a large part of which remain underserved, Mr. Rey-Matias said.
“There’s a lot of people wanting to eat ice cream during a lot of occasions. What we’re doing is putting the ice cream freezer closer to the consumer,” he said.
RFM is one of the companies behind the Selecta ice cream brand, which was created through a joint venture partnership with global consumer goods giant Unilever.
Mr. Rey-Matias said RFM is deploying more ice cream freezers in sari-sari stores and local groceries to bring the Selecta brand closer to more Filipinos. In addition, it is also investing P1.1 billion to expand its current capacity for ice cream.
“Based on our estimation, this is enough to support the growth of our fast growing ice cream business over the next four years,” he said, noting that the demand for ice cream has been steadily growing in previous years, leading to the full utilization of most of its production lines.
Sales of Selecta ice cream jumped by 11% during the second quarter of 2018, which in turn supported a double-digit increase in the company’s revenues.
RFM recorded a 3% increase in net income attributable to equity holders of the parent to P525 million during the first six months of 2018, driven by an 11.6% jump in revenues to P6.31 billion.
For full year 2018, the company expects to sustain a double-digit growth in revenues and high-single digit increase in net income. — Arra B. Francia

Jewelry for millennials


IN THE hands of Manila’s mahjongeras lies the past and present of the jewelry trade. Huge stones and statement pieces sit on the hands and necks of maturing women, leaving a huge gap on the fingers of minimalist millenials.
Most millennials, said to be the world’s poorest generation, will have to forego the luxury of owning fine jewelry. But that does not mean they have to forgo jewelry altogether.
Enter Suki, a jewelry brand by husband and wife team Aaron and Sharlynne Cabigas. It pushes itself as a jewelry brand ready, willing, and able to sell to millenials through solid gold and gemstone pieces that are minimalist, tapping into the millennial aesthetic, and, which are, more importantly, quite affordable. Pieces by Suki can range in price from P3,000 to P50,000.
According to Ms. Cabigas, her partner and husband Aaron comes from a family of jewelers and the couple noticed that their peers couldn’t relate to the designs being made by Mr. Cabigas’ family. They were too intricate, too fancy, and probably much too expensive. Thus, Mr. Cabigas began to design simpler pieces, which BusinessWorld saw in Makati late last week.
There were simple rose gold pieces studded with small diamond baguettes forming the shape of a feather, and very simple thin rings with a single diamond dot which are designed to be stacked together. As for earrings, standing out among many other designs was a thin hoop surrounded a cluster of gemstones, forming a halo.
The designs create the impression that they are worn by you, instead of the other way around.
“The main inspiration is the modern individual,” said Ms. Cabigas. Note that she didn’t allude to any sex or gender when expressing this: the pieces are so simple that anyone of any stripe could wear them.
Discussing the sale of jewelry to a generation reluctant to shell out money for baubles, Ms. Cabigas said, “It’s a very daunting task…, to introduce solid-gold pieces to millennials.”
According to her, millennial reluctance to shell out money for jewelry (aside from the obvious fact that many are quite broke) is due to their not being ready to do so, to having a sense of intimidation over making the investment, and in some cases, they may just not like jewelry (when trips to Bali are well within reach). “I feel like, there’s a lack of knowledge and education, that really, solid gold can actually be accessible.”
While older women hold the cards in the jewelry game, their progeny might be lucky enough to inherit a few pieces, but few of these younger people actually own pieces that are wholly theirs, with their own style splashed across it instead of the memory of lola firmly encrusted in a pair of earrings.
“Traditionally, we wait for someone to buy a piece for us,” said Ms. Cabigas. “We want you to have that freedom…, that access. We want you to buy jewelry for yourself.”
That’s sort of the reason for the name.
Suki in Filipino means a trusted source, and implies a strong customer-client relationship. On the other hand, according to Ms. Cabigas, “suki” in Japanese means “to like, or to love.”
“We want you to buy jewelry for your special loved ones, or, really, for yourself. That’s who you are, your own special loved one.” — Joseph L. Garcia

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