Home Blog Page 1128

Power play

Posing with the just-unveiled BAIC B30e Dune at the BAIC Base Camp in SM Mall of Asia are (from left) United Asia Automotive Group, Inc. (UAAGI) Vice-Chairman Kenneth Sytin; UAAGI Chief Marketing Executive and Senior Vice-President Lyn Buena; UAAGI Chairman Rommel Sytin; UAAGI Marketing Manager Tim Sytin; and BAIC Brand Head and General Manager Chris Yu. — PHOTO BY KAP MACEDA AGUILA

The BAIC B30e Dune combines gas and electric mills, on- and off-road capabilities

By Dylan Afuang

IN THE BAIC B30e Dune, the SUV’s hybridity is evident in two ways: Its use of gasoline-electric power, and the duality of purposes for which the China-headquartered, crossover and SUV-focused brand designed the vehicle.

“United Asia Automotive Group, Inc. (UAAGI), the official distributor of the BAIC brand of SUVs and crossovers, (introduces) the BAIC B30e Dune, (which is) designed for both city drives and off-road adventures,” the distributor announced in its release.

Recently launched in two- and all-wheel-drive variants — with an introductory starting price of P1.488 million (lopping off P100,000 until today) — the B30e Dune is a hybrid-electric vehicle (HEV), the company’s first entry into “one of the fastest-growing segments in the automotive industry,” UAAGI continued.

Conversely, “we (are pitching it) to families and to those who want to go off-roading,” BAIC Sales and Training Manager Matthew Hildawa explained to “Velocity” during an exclusive media preview of the vehicle prior to its public launch.

Mr. Hildawa added that the B30e uses a parallel-hybrid system, which “seamlessly switches among its six energy management modes” for better fuel efficiency.

In such hybrid setups, power is provided solely by one or more electric motors, or by an internal combustion engine (ICE) together with the said motors. Many parallel-hybrid systems automatically choose whether power comes purely electric, from the ICE, or from both. Instead of being charged from the grid, the battery in this system is charged by the ICE.

In B30e Dune 4×4, this version’s 1.5-liter turbo gasoline engine — and electric motors mounted on its front and rear axles, with one powering the rear wheels only when needed — produces a combined output of 403hp and 685Nm of torque. The B30e Dune 4×2 draws 329hp and 550Nm from the same 1.5-liter and front-axle-mounted electric motor.

Front- and all-wheel-drive (AWD) versions share a two-speed dedicated hybrid transmission. While the BAIC official said that the distributor has yet to rate the SUV’s fuel consumption, UAAGI did claim that the B30e 4×4 can “accelerate from zero to 100kph in just 6.9 seconds.”

The B30e AWD features the following seven drive modes to suit one’s driving style and the kind of terrain the vehicle has encountered: Comfort, Sport, Economy, Snow, Sand, Muddy Road, and Wading. The front-wheel-driven counterpart features only the first four modes.

Standard on the SUV are 19-inch alloy wheels and, to better clear the ground, an approach angle of 24.5 degrees, departure angle of 30 degrees, and wading depth of 450mm.

To “ensure (your enjoyment of) a roadside meal or setting up a campsite,” the company boasted, the B30e Dune’s cargo cover can be detached from its mounting to fold into a picnic table. Folding the second-row seats, meanwhile, frees up 1,496 liters of cargo space.

Notable features include a panoramic sunroof, heated and cooled front seats, a 10.25-inch digital driver display, and a 14.6-inch infotainment screen. Safety features are bundled with the Level 2 advanced driver assistance systems suite, and include a 360-degree camera.

UAAGI announced that the B30e and BAIC lineup are available at the brand dealerships in the following locations: Alabang; Marilao, Bulacan; North EDSA; Bacolor, Pampanga; Iloilo; Cagayan de Oro; Zamboanga; and Davao.

Italian designer Alberta Ferretti stepping down as creative director of her brand

MILAN — Italian designer Alberta Ferretti is stepping down as creative director of her eponymous brand after 43 years, fashion group Aeffe  said last week.

The new creative director for the Alberta Ferretti brand will be announced in the next few months, the group said, adding that Ms. Ferretti will retain her role as vice-president of Aeffe.

“I believe that at this point of my career it is a right and conscious choice to pave the way for a new creative chapter for the brand I founded, and which will continue to bear my name,” Ms. Ferretti said in a statement.

The spring summer collection that the brand presented last week during the Milan fashion week was the last one carrying her signature.

In the first half of the year, the Alberta Ferretti brand accounted for roughly 7% of total revenues of the group.

Aeffe, which also owns brands Philosophy di Lorenzo Serafini, Moschino, and Pollini, is struggling to revive its sales and profitability.

The family-owned group posted a net loss of 20 million ($22.27 million) in the first six months of the year and its revenues were down 15% year on year.

“Aeffe will proceed with a careful and in-depth analysis of the roles and functions of the various departments, with the aim of internally reorganizing its human resources in order to guarantee ever greater efficiency,” the group added. — Reuters

Debt yields dip after Q4 borrowing plan

YIELDS on government securities traded in the secondary market mostly fell last week after the Philippines’ Bureau of the Treasury (BTr) announced a P310-billion local borrowing plan for the last quarter.

Debt yields, which move opposite prices, dropped by 11.86 basis points (bps) week on week on average on Friday, based on PHP Bloomberg Valuation Service Reference Rates data posted on the Philippine Dealing System website.

The rate of the 91-, 182- and 364-day Treasury bills (T-bills) fell, while yields on the two-, three-, four- and five-year Treasury bonds dipped.

On the other hand, the rates of the seven-year T-bond, 10-, 20- and 25-year debt rose.

Volume fell to P47.88 billion on Friday from P113.58 billion on Sept. 20.

A bond trader said yields on seven-year T-bonds and 10- to 25-year debt increased due to some profit taking before the borrowing plan was announced.

Last week, the Treasury bureau said it would borrow P310 billion from the domestic market in the fourth quarter — P220 billion from T-bills and P90 billion via T-bonds.

This is amid expectations of further interest rate cuts that could drive yields lower. The borrowing is less than the P672.5 billion that was raised this quarter.

“The P310-billion borrowing plan is significantly less than the P630-billion auction size in the third quarter,” Dino Angelo C. Aquino, vice-president and head of fixed income at Security Bank Corp., said in a Viber message. “The market will likely see further buying momentum given less supply of bonds in the fourth quarter.”

He added that inflation data for September due this week would likely influence bond movements.

“Expect yields to trend lower especially with the outlook for reverse repurchase, and the announced reserve requirement ratio cut,” a bond trader said in a Viber message.

Last week, Finance Secretary Ralph G. Recto said inflation is slowing, and it would likely ease to 2.5% this month from 3.3% last month.

He added that the government remained cautious since global oil prices could go up due to worsening conflict in the Middle East.

Mr. Recto also said the Philippine central bank could match the 50-bp rate cut by the US Federal Reserve to boost growth.

The central bank in August cut the key rate by 25 bps to 6.25% from the over 17-year high of 6.5% amid an improving inflation outlook.

On Sept. 20 it said reserve requirements for universal and commercial banks would be cut by 250 bps to 7% of deposits from 9.5% on Oct. 25 to promote better pricing for financial services and intermediation costs. — Charles Worren E. Laureta

Post-election violence is possible in US, political scientist says — and it could be worse than Jan. 6

FREEPIK

Should Americans be bracing for bloodshed if Donald Trump loses the 2024 presidential election?

As a political scientist who studies American politics, I can easily imagine a repeat of the Jan. 6, 2021, Capitol insurrection — or worse — following this November’s presidential election.

FLASHBACK TO 2020
Four years ago, in an attempt to overturn his loss in the 2020 presidential election, then-President Donald Trump and his surrogates furiously challenged its results. Lodging 63 lawsuits, Trump and his surrogates tried to discredit or override vote counting, election processes and certification standards in nine states.

None of these attempts was successful. Many were dismissed as baseless — often by Trump-appointed judges — before they even saw trial. Simply put, there is no evidence of widespread fraud. Even a voter data expert hired by Trump concluded that the 2020 election was not stolen.

The US legal system agreed, demonstrating that courts remain an important bulwark protecting American democracy. Yet the legal system cannot prevent political violence wrought by election denialism, as the country soon learned.

On Jan. 6, 2021, over 2,000 people stormed the United States Capitol to forcibly prevent Congress from certifying the 2020 presidential election. Four people died and 138 police officers were injured during the riot, which inflicted nearly $3 million of damage. Four officers who responded to the riot would later kill themselves.

The mob was spurred, at least in part, by Trump’s rousing speech at a rally in Washington, DC, earlier that day. There, he reiterated his claims that the 2020 election had been “stolen by emboldened radical-left Democrats” and warned the crowd of approximately 53,000 that “if you don’t fight like hell, you’re not going to have a country anymore.”

Many legal scholars considered this to be incitement.

“He clearly knew there were people in that crowd who were ready to and intended to be violent,” legal scholar Garrett Epps told the BBC. “He not only did nothing to discourage it, he strongly hinted it should happen.”

TRUMP: A SORE LOSER … AND WINNER
Trump has a long history of denying the results of any contest whose outcome he does not like.

Before entering the political arena, Trump called the 2012 Emmys “dishonest” because his show, The Apprentice, did not win. In 2012, he dismissed then-President Barack Obama’s reelection as a “total sham” and questioned the accuracy of vote tallies and voting machines. Unleashing a barrage of tweets, Trump urged citizens to “fight like hell” against a “disgusting injustice.”

As a presidential candidate in 2016, Trump called the Republican primaries fraudulent after his competitor Sen. Ted Cruz won in Iowa, tweeting that the Texan “stole it.”

Ultimately, Trump won the Republican primaries and the national presidential campaign against Hillary Clinton in 2016. Nonetheless, he falsely claimed that he only lost the popular vote —Trump fell 2 million short of Clinton’s 65.8 million votes — due to massive voting among illegal immigrants.

ATTACKING THE 2024 ELECTION
Trump has doubled down on his election denial this election cycle. By May 2024, The New York Times had documented 550 such statements, up from roughly 100 in the entire 2020 campaign.

Continuing to insist that the 2020 election was “rigged,” Trump predicts a repeat in 2024.

This narrative of pervasive victimization has been bolstered by a flurry of lawsuits and criminal investigations brought against the former president. Since 2020, state and federal prosecutors have charged Trump with 94 crimes, including business fraud, mishandling classified documents and interfering with the federal election.

In New York, he was convicted of 34 counts of corporate fraud and found liable for sexual abuse in a civil case filed by author E. Jean Carroll.

Trump has cast these legal challenges as a deliberate attempt by President Joe Biden to interfere with the 2024 election over 350 times.

“My legal issues, every one of them, civil and the criminal ones, are all set up by Joe Biden,” Trump told a New York City crowd in January 2024. “They’re doing it for election interference.”

His surrogates amplify this message. For instance, Mike Howell, director of the right-leaning Heritage Foundation’s Oversight Project, proclaimed on June 6, 2024, at a public Washington event that there is a “0% chance of a free and fair election.”

FROM DENIALISM TO VIOLENCE: WARNING SIGNS

Lying about election results is no mere tantrum. It is a cornerstone of Trump’s strategy to paint himself as the victim of an elitist deep state — an image that appeals to his base, particularly among white working-class voters, some of whom feel that they are victims themselves of globalization and shadowy elites.

This strategy is working.

A September 2023 survey by the independent pollster PRRI showed that 32% of Americans believe that the 2020 election was stolen. Even though the question has been comprehensively litigated and dismissed in the courts, many American citizens simply do not believe, under any circumstances, that Trump can lose in a fair election.

That fact, combined with other statistics from the same poll, explains why I believe another Jan. 6 is possible.

About 23% of Americans and 33% of Republicans believe that “true American patriots may have to resort to violence in order to save our country” — a 5% increase among Republicans and 8% among the general public since 2021.

Meanwhile, 75% of Americans believe that American democracy is at risk in the 2024 election. That, too, may be something worth fighting for — especially when 39% of Trump supporters and 42% of Biden supporters report having no friends who support the opposing candidate. When people do not trust or socialize with people unlike them, violence between groups is more likely.

I fear little can be done to prevent such violence.

In 2022, Congress, acting in rare bipartisan fashion, approved the Electoral Count Reform and Transition Improvement Act of 2022, which closed many doors that President Trump attempted to use to thwart the 2020 election. Yet, as history shows, rule of law is not a certain brace against violence.

Given the perceived stakes of the election for most Americans, along with Trump’s ever-sharpening incendiary rhetoric, it is hard to imagine that Jan. 6, 2021, was an isolated chapter in American history.

Indeed, it may have been just a prelude.

THE CONVERSATION VIA REUTERS CONNECT

 

Alexander Cohen is an assistant professor of Political Science at Clarkson University.

FedEx Identifies PHL as key growth market

REUTERS

LOGISTICS provider Federal Express Corp. (FedEx), an American multinational conglomerate focused on transportation, e-commerce, and business services, said the Philippines is one of its growing markets in the Asia-Pacific region, alongside Vietnam and Indonesia.

On the sidelines of a facility tour at Clark International Airport in Pampanga on Friday, FedEx Managing Director for the Philippines Maribeth E. Espinosa said that the company makes strategic investments based on the trends they monitor.

“The fact that we will expand to a bigger facility shows that we have full trust in the Philippines,” Ms. Espinosa said.

“The Philippines is strategically located. Geographically, it has access points to the different ASEAN regions. That is one, and we also look at the talent pool when we invest in a certain market,” she added.

She said the country’s English-speaking population and dedicated workforce are why the company trusts its over 1,000 Filipino employees.

In July, FedEx announced plans to more than double the size of its Clark facility by signing a lease agreement with Luzon International Premiere Airport Development Corporation (LIPAD).

“We signed a lease agreement with LIPAD to expand this facility because we want to ensure that we answer the needs of our customers and anticipate their needs because we want to help the Philippine business community to really connect to the world,” she said.

The company’s hub in Clark is among its three gateway facilities, with the others located in Singapore and Japan. Its main hub is in China.

FedEx’s 17,000-square-meter facility at Clark International Airport can sort 9,000 parcels per hour. — Justine Irish D. Tabile

Analysts’ September inflation rate estimates

HEADLINE INFLATION likely slowed to a near four-year low in September amid falling prices of rice and fuel, giving the Bangko Sentral ng Pilipinas (BSP) room to cut benchmark interest rates further, analysts said. Read the full story.

Analysts’ September inflation rate estimates

Poultry imports from France banned after bird flu outbreak

REUTERS

THE Department of Agriculture (DA) said it banned  imports of poultry and wild birds from France after an outbreak of Highly Pathogenic Avian Influenza (HPAI) or bird flu.

In Memorandum Order no. 40, the DA said shipments of domestic and wild birds, poultry meat, day-old chicks, eggs, and semen from France were suspended.

“There is a need to prevent the entry of the HPAI virus to protect the health of Philippine poultry,” it added.

According to the Bureau of Animal Industry, avian flu cases in the Philippines have been detected in 53 municipalities across nine provinces as of Sept. 20.

The French authorities had submitted a report to the World Organization for Animal Health regarding an outbreak of H5 (N untyped) HPAI cases there.

A case was reported in Saint-Malo in Brittany on Aug. 7, according to an official report submitted by the French authorities on Aug. 12.

It added that all shipments coming from France that are already in transit, loaded, or accepted into port would be allowed provided that the products were slaughtered or produced before July 25.

In April, the DA had lifted the import ban of domestic and wild birds from France after cases of HPAI were resolved. — Adrian H. Halili

DFSK enters market with 3 electrified offerings

The DFSK Candy Mini EV is priced at P658,000. — PHOTO BY JOYCE REYES-AGUILA

The Seres Group brand is now here

CHINESE AUTOMOBILE brand DFSK (Dongfeng Sokon Automobile) recently made its entry in the Philippine market official. Three electric vehicle (EV) offerings were unveiled to the public at the TriNoma Mall in Quezon City: the DFSK Candy Mini EV, the DFSK E5 PHEV (plug-in hybrid electric vehicle), and the DFSK EC75 commercial van. The Chinese brand is a wholly owned subsidiary of the Seres Group, which has maintained a partnership locally with QSJ Motors since 2018.

“This an exciting time as we unveil the latest models of our electric vehicles,” QSJ Motors Junior Business Manager Kenneth Chang told guests which included bank partners, members of the media, and key opinion leaders. “It marks a significant milestone for our company as we introduce DFSK vehicles. These vehicles are not just a culmination of our dedicated efforts but also our commitment to pushing the boundaries of automotive excellence.”

The compact Candy Mini EV is said to be a cost-effective alternative to traditional vehicles, according to DFSK. The four-seater boasts up to 220 kilometers of pure battery range on a single charge, and has a 16.8-kWh battery capacity. Technology offerings include an advanced infotainment system, parking radar, and cruise control. The Candy Mini EV is priced at P658,000 and is recommended by the brand for short trips, such as running errands or going to and from the office.

Meanwhile, with the E5 PHEV, the company targets those who are looking for a PHEV for the urban commute and weekend drives. The mid-sized sport utility vehicle seats seven and has a combined range of 1,150 kilometers, with the pure electric range pegged at 100 kilometers. Available in the E5 are a dual-screen infotainment system, seat ventilation, advanced driver assistance systems (ADAS), in addition to hill start assist, traction control, and hill descent assist. The vehicle has a panoramic sunroof and a surround sound system with four speakers for the M1 variant and 12 speakers for the M2 variant. Other features in the M2 are front and rear parking radar, automatic air-conditioner control, and an intelligent air purification system. Both variants come in black, and white plus gray colors, while the M2 can also be purchased in brown. Pricing starts at P1.58 million.

Finally, the EC75 commercial van, also referred to as the “E-Negosyo Van” by DFSK in the Philippines, is fully electric. The vehicle can accommodate two and offers a seven-cubic-meter cargo space. Fully charging the 50.38-kWh battery can take as little as 45 minutes, providing the van with up to 310 kilometers of electric range. Its smart features include ADAS and real-time tracking and fleet management systems. This vehicle is priced at P1.45 million.

In a statement, DFSK says that the introduction of its vehicle lineup is designed to meet the growing demand for sustainable transportation, and contribute to efforts to combat climate change. For more information, visit www.dfsk.com.ph. — Joyce Reyes-Aguila

H&M bets on lower prices, trendy clothing to boost holiday sales

STOCKHOLM — Swedish fashion retailer H&M is banking on lower prices and a wider range of trendy clothing compared to basics to drive sales among cautious consumers in the crucial shopping months leading up to the end of the year.

Shoppers are already starting to browse for holiday items and H&M recently launched its homeware collection for the holiday season, CEO Daniel Erver said, adding that value for money will be critical as households are still under financial pressure.

H&M is the first global retailer to offer insights into its outlook for the upcoming holiday shopping season, a critical sales driver for the sector.

“We see a high search interest, actually, in holiday (products) already now,” Mr. Erver told Reuters in an interview, referring to online search trends.

He was speaking after the retailer ditched its hope for a 10% operating margin this year and reported weaker than expected third-quarter profit, but said it sees sales for September — the first month of its fourth quarter — jumping 11% compared to a year ago.

While H&M sells many cheap evergreen basics like $19.99 jeans and $7.99 T-shirts, Mr. Erver said it is shifting to a bigger share of trendy pieces that people will buy no matter the weather.

“Where we are shifting and doing the biggest leap is updating the assortment to make it more relevant, to make it in current fashion, updated aesthetics, that’s where were performing the best and that’s also the least weather-dependent,” he said.

CELEBRITY APPEAL
Shiny leather dresses with silver studs, knee-high boots, and mohair tops and skirts embellished with rhinestones all featured prominently in H&M’s autumn/winter collection modelled by pop star Charli XCX, who performed at H&M’s London Fashion Week launch two weeks ago, and supermodel Kate Moss’ daughter Lila Moss, among other celebrities.

A fluffy leopard print coat worn by Charli XCX in the advertising campaigns sold out in minutes, Mr. Erver told Reuters. He is betting that star power will boost H&M’s brand and justify the marketing splurge that is part of his turnaround strategy.

“The focus on fashionability, brand heat and activating collections with collaborations has always been probably the strongest piece of H&M’s business, and basics have just become more and more competitive,” said Deutsche Bank Research analyst Adam Cochrane.

Increasing marketing spending is “100% the right thing to do to reignite the H&M brand,” Mr. Cochrane added.

H&M will still have to use discounts to lure cash-strapped shoppers, though, and on H&M’s US website many of the items in the autumn/winter collection were marked down between 15% and 42%. A burgundy synthetic leather skirt, slashed to $10.49 from $17.99, showed as sold out.

Overall US retail sales growth is expected to be muted during the holidays as prudent shoppers hold out for the best bargains, industry experts predict.

North America is a “more challenged” region for consumer demand, Mr. Erver said. — Reuters

Enhancing dementia care in the Philippines

RAYCHAN-UNSPLASH

More than 55 million people have dementia worldwide, over 60% of whom live in low- and middle-income countries (LMICs), according to the World Health Organization (WHO). Every year, there are nearly 10 million new cases.

As of 2020, there were 9.22 million Filipinos 60 years and older, with more women (55.5%) than men (44.5%), according to the latest Philippine Statistics Authority census. Based on the calculated prevalence rate, there are approximately almost a million Filipino senior citizens living with dementia, a figure which is estimated to increase to 1.5 million by 2030, nearly 2 million by 2040, and 2.5 million by 2050.

Dementia is a term for several diseases that affect memory, thinking, and the ability to perform daily activities. It is a syndrome that results from a variety of diseases and injuries that affect the brain. Alzheimer disease is the most common form of dementia and may contribute to 60% to 70% of cases.

The illness gets worse over time, and eventually most people with dementia will need others to help with daily activities. Dementia is currently the seventh leading cause of death and one of the major causes of disability and dependency among older people globally, the WHO said.

Dementia mainly affects older people but not all people will get it as they age. Factors that increase the risk of developing dementia include age (more common in those 65 or older); high blood pressure (hypertension); high blood sugar (diabetes); being overweight or obese; smoking; drinking too much alcohol; being physically inactive; being socially isolated; and depression.

Early signs and symptoms of dementia are forgetting things or recent events; losing or misplacing things; getting lost when walking or driving; being confused, even in familiar places; losing track of time; difficulties solving problems or making decisions; problems following conversations or trouble finding words; difficulties performing familiar tasks; misjudging distances to objects visually.

Common changes in mood and behavior include feeling anxious, sad, or angry about memory loss; personality changes; inappropriate behavior; withdrawal from work or social activities; and being less interested in other people’s emotions.

A recent study by Anlacan et al has identified major gaps and challenges in dementia care in the country in terms of limited published local data, high healthcare costs, inadequate health financing, and limited manpower. Published in the Journal of Alzheimer’s Disease in February, “Current Status and Challenges in Dementia Care in the Philippines: A Scoping Review” looked at the available literature from the earliest indexed record until June 2022 in six international and two local databases, as well as government and non-government websites.

The study found that while there is a high prevalence of dementia in the country, local research output on dementia has remained low. It cited an earlier scoping review which revealed that only 11 out of 1,006 (1.1%) published articles on dementia in Southeast Asia were from the Philippines, comprising only eight of the 687 (1.2%) publications found in journals.

The study found that cost is a major barrier, as healthcare coverage is limited. Patients and their families rely mainly on out-of-pocket payments, leading to challenges in the proper diagnosis and treatment of dementia. Moreover, the country needs more neurologists, psychiatrists, and geriatricians who are specialists in the diagnosis and management of dementia.

The study found that the majority of caregivers taking care of older adult Filipinos have never received formal training on dementia care. It acknowledged the efforts of government organizations and specialty medical societies that conduct caregiver training programs for both family caregivers and rural health workers on basic dementia care. This includes the Technical Education and Skills Development Authority (TESDA) caregiving training program which has provision of care and support to older adults as one of its core competencies.

The study authors recommended a multi-pronged approach to bridge the gaps in dementia care in the country. There are needs to enhance research on nationwide dementia epidemiology; improve government financial support spanning the different levels of dementia care; broaden access to dementia diagnostics and medications; and increase the number of dedicated manpower for dementia diagnosis and management.

“Acknowledging these gaps and challenges is a good initial step in developing plans and health policies to improve the quality of life of Filipinos living with dementia but eventually, a national dementia plan will be necessary for systematic and cost-effective delivery of care,” the study authors concluded.

The journey toward new treatments for Alzheimer’s disease is a powerful example of the role innovation plays in science. Despite a 99% failure rate in clinical trials, each setback has provided valuable insights, paving the way for significant breakthroughs. Recent advancements in treatments offer hope by potentially slowing disease progression, moving beyond mere symptom management. These successes are a testament to decades of persistent research and dedication.

By fostering a supportive environment for innovation and providing incentives for ongoing research, we can drive transformative change and make a substantial impact in the fight against dementia.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines or PHAP, which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

Philippine banks continue to miss MSME lending quota

PHILIPPINE banks continued to fall short of the mandated quota for small business loans in the first half, data from the central bank showed.

Loans extended by the banking industry to micro, small and medium-sized enterprises (MSME) had reached P488.13 billion as of end-June, accounting for only 4.52% of their total loan portfolio of P10.8 trillion, well-below the required 10% quota.

Banks must allot 10% of their loan portfolio for small businesses under the Magna Carta for MSMEs.

Under the law, 8% must go to micro and small enterprises, while 2% must go to medium-sized businesses.

As of end-June, lending to micro and small enterprises stood at P196.834 billion, equivalent to 1.82% of their total loan portfolio and well below the 8% quota.

Loans for medium enterprises hit P291.296 billion, accounting for 2.7% of their total credits and exceeding the 2% quota.

Universal and commercial banks released P134.095 billion in loans to micro and small enterprises in the first semester, or 1.35% of their total loans.

Big banks’ loans to medium enterprises stood at P235.814 billion, or 2.38% of their total lending.

Thrift banks extended loans worth P24.604 billion to micro and small enterprises or 3.74% of their portfolio, while their loans to medium enterprises hit P35.532 billion, equivalent to 5.39% of their total lending.

Meanwhile, rural and cooperative banks exceeded the quota for lending to MSMEs. They extended loans to micro and small enterprises worth P37.884 billion, equivalent to 17.61%.

They also released loans to medium enterprises worth P19.923 billion or 9.26%.

Loans granted by digital banks to the micro and small enterprise sector stood at P250 million in the first half, accounting for 1.41% of their total credits.

They disbursed P30 million to medium enterprises, equivalent to 0.16% of their portfolio.

During the coronavirus pandemic, the Bangko Sentral ng Pilipinas (BSP) allowed banks to count MSME loans as alternative reserve compliance with the reserve requirements to help support the sector.

The relief measure expired on June 30, 2023. However, it was extended to thrift banks and rural and cooperative banks until Dec. 31, 2025. — Luisa Maria Jacinta C. Jocson

Ayala Corp. share price up after planned follow-on offering

AYALA Corp. was among the most actively traded stocks last week amid the approval of its planned follow-on offering (FOO) by the market operator, following a treasury share sale and market sentiment from the US central bank interest rate cut.

Ayala Corp. was the seventh most actively traded stock last week, with a total of 2.58 million shares worth P1.8 billion having exchanged hands from Sept. 23 to 27, according to data from the Philippine Stock Exchange (PSE).

Its shares closed at P692 apiece on Friday, up 0.3% week on week. Since the start of the year, the stock increased by 1.6% from P681 per share.

“Ayala Corp. became one of the most actively traded stocks this week due to its high-profile financial activities and strategic announcements. The company disclosed its plans to raise P15 billion through an FOO shortly after it successfully generated P2.21 billion from a treasury share sale,” Toby Allan C. Arce, head of Sales Trading at Globalinks Securities and Stocks, Inc., said in an e-mail.

Mr. Arce added that the disclosure created significant interest in the market, as investors sought to capitalize on Ayala Corp.’s plans to bolster its capital and to be used for expansion and other corporate activities.

“These developments were seen as a sign of Ayala’s strategic financial management, driving up its liquidity and making it one of the week’s top-traded stocks,” added Mr. Arce.

Last week, the PSE approved Ayala Corp.’s application for the reissuance from treasury of up to 7.5 million Class B preferred shares to cover the planned FOO.

The conglomerate foresees having P14.89 billion in net proceeds if the oversubscription is fully exercised, which will be utilized for the redemption of the P15-billion Class B preferred shares callable on Nov. 29.

The FOO consists of a base offer of up to five million shares or P10 billion, with an oversubscription option for 2.5 million shares or P5 billion, both priced at P2,000 per share, based on Ayala Corp.’s prospectus dated Sept. 25.

Ayala’s consolidated revenues rose by 8.7% to P92.67 billion in the second quarter, bringing its top line in the first half to P179.44 billion, growing by 9.6%.

The conglomerate’s attributable income in the April-to-June quarter rose by 12.5% to P9.21 billion from P8.19 billion in the same period last year.

In the first semester, net income attributable to the owners of the parent company inched up by 21.1% to P22.29 billion from P18.41 billion a year ago.

Mr. Arce said that the company is poised to perform relatively well, especially if the proceeds from the FOO are deployed effectively toward growth opportunities.

“Given its strong portfolio in infrastructure, real estate, and other sectors, the Philippine conglomerate could continue to post solid revenues, especially with signs of recovery in various industries post-pandemic. However, external economic factors such as inflation and interest rates may temper this growth, making the outlook moderately positive but still subject to external risks,” added Mr. Arce.

He projected the full-year 2024 net income to reach P45.9 billion.

“Overall market sentiment lifted Ayala Corp. as the United States Federal Reserve (US Fed) started cutting interest rates. This is bullish news for the PSE Index, lifting all sectors, especially the financial and property sectors,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a Viber message.

“Investors will likely see capital raising due to the strong performance of the market,” Mr. See added.

Headline inflation averaged 3.6% in the first eight months of the year, slower than the 6.6% recorded in the same period last year.

Inflation data for September will be released on Oct. 4 by the Philippine Statistics Authority.

The Monetary Board cut rates by 25 bps, bringing the benchmark rate to 6.25% from the over 17-year high of 6.5%.

In a Reuters report, the US Fed cut its policy rate to the 4.75%-5% range, delivering a bigger-than-usual half-of-a-percentage-point cut. In addition to approving the half-percentage-point cut, Fed policy makers projected the benchmark interest rate would fall by another half of a percentage point by the end of this year, a full percentage point next year, and half of a percentage point in 2026, though they cautioned that the outlook that far into the future is necessarily uncertain.

Looking forward, Mr. Arce said that the stock’s performance could see fluctuations depending on investor response to its capital-raising initiatives and broader market trends.

“In the short term, a range-bound movement is anticipated unless there’s a significant macroeconomic development or news event that influences market sentiment,” Mr. Arce added.

Mr. Arce pegged Ayala Corp.’s stock at an immediate support of around P656 per share and resistance of P735 per share.

Mr. See expects Ayala Corp.’s stock to move sideways to down as investors will experience profit taking in the short term.

He gave support levels at P660 apiece and P630 apiece, while the resistance level is at P720. — Lourdes O. Pilar