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If it’s too in, it might soon be out


WHILE New York showed a goody two-shoes attitude, Milan Fashion Week, which concludes on Feb. 25, showed excess and a fighter attitude that only the Italians could pull off.
MAKE A MAN OUT OF YOU
For decades, the man’s suit has been a symbol of power, and women are taking control by adopting the uniform of the Man. Armani, of course, is known for its suits, but translates it as chic pantsuits for women, opening its show with such pieces, with a cool blue streak running down the middle.
Fendi also takes a cue from the men with light brown jackets reminiscent of the tuxedo, translated as coats, with giant bows to emphasize their relation to the men’s evening outfit.
Versace, meanwhile, showed the suits as hints in the fabric, using houndstooth and tweed.
LET ME TOUCH YOU
Gucci, Prada, and Versace showed an almost baroque attention to texture: think velvet, fur (or faux), lace and leather: we’re in love, for example, with a crocodile leather skirt and jacket combo at Versace, while we love the lace capes and dresses from Prada, as well as the 3D leather appliques on some outfits.
Details such as fur stoles are still in, apparently, as seen in Versace and Gucci. Sequins as a glam look are seen uniformly on all the runways, so you can shine all you want.
YOU BETTER WORK
Utilitarian aesthetics were seen in Prada and Armani, if only in olive jumpsuits from Prada and the stark silhouettes at Armani. Versace took a tack from the street in its collection, showing a more fabulous working woman. We’ll have to point out the frou-frou richness of Moschino, however, for contrast.
I’M RICH
We’ve mentioned the sequins, but now we’ll have to discuss the objets d’art prints on Versace and the overt consumerism present on the prints of Moschino (the outfits are printed with a pattern of money). We’re guessing that we’re moving away from the sobriety and grunge of the ’90s revival, and seeing the cycle of fashion revolving towards the overt, sometimes vulgar, glam of the 2000s.
Leopard prints, and animal prints in general; as well as bright patent leather, are ready to hit the streets.
To BusinessWorld’s eye, however, the animal print trend might die soon, since it’s all on the world’s runways; and as soon as a trend becomes too in, it’s gone. If you’re looking for an inspiration, Paris Hilton’s outfits from her glory days might be relevant again — we saw a peach sequined Versace dress that her old self might have liked to wear. If not that, the gold lame outfits from Moschino might do the trick. — Joseph L. Garcia

DA backs raising biodiesel coconut content, protection from palm oil imports

THE Department of Agriculture (DA) will resubmit its recommendations for the coconut industry which include the increase of coconut content in biodiesel as well as the imposition of quantitative restrictions on palm olein from Malaysia and Indonesia, Secretary Emmanuel F. Piñol said on Sunday.
“The increase in the use of coconut oil in the biodiesel program is frowned upon by the fuel industry because it could increase the cost of biodiesel by about P0.35 per liter,” Mr. Piñol said in a social media post.
“What has not been emphasized, however, is the fact that by using more coconut oil in biodiesel, the mileage of vehicles increases by about three kilometers per liter and improves the air pollution index,” Mr. Piñol added.
Mr. Piñol said last year that his office will lobby for the increase of biofuel content in diesel from B2 to B5 to absorb oversupply in the copra industry.
“On Tuesday, the DA will resubmit its recommendations on how to address the low copra prices which include: increase in the use of coconut oil in the biodiesel program from B2 to B5 which would effectively use up an estimated 200,000 metric tons (MT) of copra, [and the] imposition of a quantitative restriction on the volume of palm olein imported from Malaysia and Indonesia because of a drastic volume increase of 900% over the last three years,” Mr. Piñol said.
“The imposition of a QR on Palm Olein or tariffs could actually be employed by the Philippines in cutting down on the volume of the imports to protect the local industry,” Mr. Piñol added.
According to Mr. Piñol, Executive Secretary Salvador C. Medialdea asked him last week to resubmit the recommendations. — Reicelene Joy N. Ignacio

BSP to set higher fines for banks

By Melissa Luz T. Lopez
Senior Reporter
HEFTIER FINES await banks and financial firms who will violate rules set by the Bangko Sentral ng Pilipinas (BSP), which officials hope will keep banks on their toes in terms of compliance.
BSP Senior Assistant Governor and General Counsel Elmore O. Capule said among the key reforms provided by Republic Act (RA) 11211 — which updates the provisions of the central bank’s Charter — sets higher penalties for violating industry regulations.
“We want to make it painful on the part of banks to violate rules and regulations,” Mr. Capule said in a briefing last Friday.
Updates to the New Central Bank Act raise the fines which the Monetary Board can impose on erring institutions. From a ceiling of P30,000 per day for each violation, the rate has been raised to P1 million “for each transactional violation,” or P100,000 per calendar day for continuing lapses.
A new provision was also introduced, which reads: “In case profit is gained or loss is avoided as a result of the violation, a fine no more than three times the profit gained or loss avoided may also be imposed.”
“We are imposing a lot of penalties, but the Monetary Board will say — ‘that’s only the amount we will impose? Look at the magnitude of what they did,’” Mr. Capule added. “With this imposition, it’s not the fine that will kill them but the three times the profit… That’s very expensive on their part. I think that will really be a deterrent.”
An “informer’s reward” worth a maximum of P1 million is also included in the new law, which BSP officials hope to be a way to get more insider tips or whistleblowers to develop cases against financial firms and bank officers who go against the rules.
The biggest fine imposed by the BSP in history is the P1-billion penalty for the Rizal Commercial Banking Corp. over the lender was used by cyber criminals to pocket $81 million stolen from the Bangladesh central bank in 2016. It was settled by the lender in two tranches. To date, only $15 million has been returned to Dhaka.
The updated provisions of the New Central Bank Act are touted to strengthen the BSP’s monetary and regulatory functions, after having been left pending before Congress for roughly 20 years since its passage in 1993.
Apart from cash penalties, the BSP maintains the authority to suspend or revoke licenses granted to the financial firms, as well as their access to BSP services.
On the flipside, the new law also provides legal protection for BSP officials and staff when performing their official duties, which Mr. Capule said will provide more confidence as it would limit intimidation for lawsuits from subject banks.
RA 11211 takes effect March 5, or 15 days after it was published.

Keeping reading fashionable

Text and photos by Giselle P. Kasilag

TO PARAPHRASE the saying, it takes a library to raise a child. For a country like the Philippines where children (14 and below) account for 35% of a population of 104 million, it will certainly require more libraries filled with more books to adequately raise the nation’s youth.
The arrival of the Big Bad Wolf — a massive book sale boasting of 2 million books under one roof — last year appeared to have energized the country and increased the engagement with the physical book. For over a week, thousands lined up, browsed, and purchased cartloads of books while taking the required selfies for various social media platform.
The much-awaited return to Manila, however, raised the question of whether the interest would be sustained or even surpassed. Big Bad Wolf officially opened on Feb. 22 and while it is still too early to tell how it compares to the success of the first run, clearly the interest is still there.
A good number of changes were made. For one, more traditional shopping carts are available on top of the plastic bins. After all, pulling the latter filled with hardbound books can be painful to the shoulders. The traditional carts are more friendly to buyers looking to bring home a bigger haul.
Like last year, buyers are allowed to store their finds temporarily before heading to the cashier. This allows them to shop for more books without the difficulty of pulling around a heavy bin. This year, however, the temporary storage has been expanded and more personnel are on hand to assist people who are buying more than a cartload.
Food, which was a major issue in last year’s sale, has now been made available within the complex (but outside the sale area). It is still quite small and the number of tables are not really adequate but there are far more choices this year and many options are of the street food variety — easily to hold and can be consumed without having to sit on a table.
The main focus, however, is still the books. And just like the year before, there are many bargains to be had. This year’s sale follows exactly the same lay-out as last year. The row of fiction books greet buyers entering through the far-right (facing the building). The opposite end is where the children’s books can be found. The rest is non-fiction heaven — including art, sports, culinary, history, travel, crafts, and science books. In the center are special titles — either special editions or boxed sets of hard to find books that are pricier than the rest but are still a massive bargain.
Bargain is best defined by a full-color, hardbound book entitled Aftermath by Joel Meyerowitz. It is a photographic record of Ground Zero after the Sept. 11 attacks on the World Trade Center. In pristine condition, it is available for P480.
Similar quality books on history and art sell for under P1,000 including Life And Death of Picasso (P480), The Art Of Living (P580), and Regarding Warhol: Sixty Artists Fifty Years (P780).
Just like last year, there were several tables devoted to graphic novels. But even casual comic book fans would be happy to bring home books highlighting the favorite Marvels Avenger characters. Hardbound copies of Marvel: Absolutely Everything You Need To Know sells for P580; Ultimate Marvel sells for P980; and for the more serious Marvel geek, the Marvel Infinity Companion sells for P2,350.
While the original Harry Potter series books are still unavailable, there are companion books that can be purchased, especially those the highlight the magic it took to bring the books on to the big screen.
Rick Riordan (of Percy Jackson fame) fans, however, will have much to celebrate. An entire spread is dedicated to his books. Hardbound copies of his various series’ are sold for P230 each. A large, hardbound companion book entitle Percy Jackson’s Greek Heroes sell for only P350.
Fans of Jeffrey Archer, Sidney Sheldon, and other major authors of thrillers can bring home pristine paperback copies for P190 to P230 per title. The arrangement can be a bit confusing since every Crime and Thriller table (spanning about four rows) would contain different titles from the same authors rather than having the same author on the same table. If the title needed isn’t on the first table, buyers can check the others and may be rewarded for their patience.
For parents looking to stock up their libraries with classic titles that their children will definitely study in school, there is an ArtFolds series that provides readers with folding instructions of the book pages (yes, they want you to fold the pages!) to create a sculpture that is related to the story. Treasure Island & Other Adventures folds up to reveal a sun pattern. The Snow Queen & Other Tales folds up to a snowflake. Sense & Sensibility folds up to reveal the word “Love.” All the books are being sold for P290 each.
Culinary books still offer some of the best bargains. Hardbound books by noted chefs such as Nigella Lawson, Jamie Oliver, Mike Isabella, and Heston Blumenthal go for P380 to P580.
Clearly, printed books are not a thing of the past. Beyond the selfies and the social media check-ins, the success of the Big Bad Wolf is a wonderful affirmation that reading is always fashionable.
The Big Bad Wolf Book Sale is ongoing at the World Trade Center in Pasay City, open 24 hours until March 4. Admission to the sale is free. There are on-ground contests with 20 winners selected daily. There is also one grand prize to be won — a bookshelf worth of books. The winner for this grand prize will be announced on March 3.

WeWork to open hub in Makati within Q2

WEWORK IS planning to launch a second hub in Makati City by the second quarter to take advantage of the robust demand for co-working spaces.
This after WeWork officially launched last week its first hub at Uptown Bonifacio Tower Three, Fort Bonifacio, Taguig City.
The New York City-based co-working space provider said it will open a 680-desk hub in RCBC Plaza, Makati City within the second quarter.
Turochas Fuad, managing director for WeWork Southeast Asia, said the company’s expansion is not just benefitting their members, but also contributing to the economy of the city where it is present.
During the WeWork Uptown Bonifacio launch, Mr. Fuad cited a survey done for the London market in 2018, wherein 81% of the members said WeWork helped them become more productive. Also, an average four-person company is also able to save 38% over traditional real estate options.
He also noted WeWork members in London are able to hire an average of 5.8 new employees since joining the co-working space.
“The whole social economic factor about how hiring, the 2.1x multiplier effect. I think that’s a great impact of what we’re trying to do. Not just WeWork, but because the fact that we put in a few other companies within each space. That few other companies hire an average of 5.8 people. That just balloons up in terms of the creation of jobs that we help manage contribute to,” Mr. Fuad told BusinessWorld after the company’s event on Feb. 19.
For its Manila operations, WeWork counts not just global enterprises but also local firms as members. These include education technology enterprise Edukasyon.ph, activities booking platform Klook and cashback reward start-up Shopback.
“We hope and we aspire to do big things in [the] Philippines and Southeast Asia. We aspire to do more. If we can contribute more then we can create more jobs and help our landlord partners to generate better yields and better returns… not only on the spaces that we take but to the entire asset that we own,” Mr. Fuad said.
Aside from Makati, Mr. Fuad said WeWork is also looking into opening hubs in Ortigas and other central business districts.
“We’re still looking for a few more… closer… low hanging fruit for us to execute the leases and partnerships with the landlords… there is plan for more in Manila and this year. A few more before the year ends,” Mr. Fuad said.
“We’re finding a balance of going really fast but at the same time really understanding what people are looking for so that when we build it it’s the right solution, it’s the right service, it’s the right fit for everyone,” he added. — Vincent Mariel P. Galang

Potential Effects of RA 11203 (Philippine Rice Tariffication)

By Caesar B. Cororaton, Krista Danielle S. Yu and Marites M. Tiongco
School of Economics, De La Salle University
AFTER 24 YEARS since the Philippines was granted approval in 1995 by the World Trade Organization (WTO) to impose quantitative restriction (QR) on rice importation into the country, the government finally eliminated the quota system on rice importation through the passage of RA 11203. The law, which was recently signed, will be implemented on March 5, 2019. One of the key features of RA 11203 is the replacement of the rice importation quota system with tariffs. In the new law, the following tariffs apply:

(i) 35% if rice was imported from within ASEAN

(ii) 40% if within the minimum access volume (MAV) of 350,000 metric tons for imports coming from countries outside of ASEAN

(iii) 180% if above the MAV and from a non-ASEAN country.

The Philippine government expects to generate additional tariff revenue of P10 billion as a result of the tariffication of the rice quota. This amount is expected to be allocated to assist rice farmers who will be negatively affected by the expected increase in the inflow of cheaper rice imports of similar quality (Class C or 25% broken) into the country.
The objective of this short note is to present our simulation results of the potential economic impact of RA 11203 on rice farmers, rice imports, consumer prices, Filipino consumers, government tariff revenue, and poverty. The simulation was conducted using a Philippine economic model. We considered two scenarios involving a complete elimination of QR: (i) without tariff replacement on rice imports; and (ii) with rice tariffs in RA 11203. The simulations were compared to the base case where the QR on rice importation is retained.
1. In the case of QR elimination with no tariff replacement, the volume of inflows of cheaper rice will increase by 92.7%, displacing local palay production by 5.9%. The price of local palay will also decline by 2.9%. Overall, the value of local palay production will decrease by P35.1 billion as a result of the drop in both the volume of production and prices. Because there are no tariffs to replace the quota, government revenue will drop by P1.3 billion.
2. If the elimination of the QR is replaced with tariffs stated in RA 11203, the volume of inflows of cheaper rice imports increase at significantly lower rate of 8.1 %. The drop in palay price is also considerably smaller at 0.2%. Overall, the value of local palay production will decline by P2.7 billion. Because of the tariffs imposed on rice imports, government tariff revenue will increase by P18.9 billion, significantly larger than the estimates of the government.
3. In both cases, the elimination of the rice QR will result in lower domestic prices of rice, which in turn leads to higher volume of rice consumption. The value of rice consumption however will decline by P2.1 billion despite the increase in the volume of rice consumption largely because of the decrease in the domestic prices of rice as a result of the tariffication of rice QR.
4. In both cases, the tariffication of the QR will result in lower inflation. The reduction in the overall price is larger in the case of no tariff replacement, mainly because tariffs are additional taxes on consumption. Across decile income groups, however, the decline in consumer prices is higher in lower income groups largely because these groups have relatively higher expenditure share on rice in their consumption basket. Cororaton and Yu (2019) have noted that 20.2% of consumption of poor households is on rice as compared to 10.9% of consumption of non-poor.
5. Both cases are poverty-reducing. The number of poor who will be lifted out of poverty is considerably higher in the first case at 409,956 compared to 38,060 for the second case mainly because of the higher reduction in consumer prices. However, the negative effects on palay farmers are significantly higher in the first case with no tariff replacement compared to the case with tariffs under RA 11203.
The rice QR system which lasted for 24 years generated sizable pure economic rent that went directly to the pockets of select few. It is about time to tariffy the rent and redistribute these to the rice farmers who will be negatively affected by the influx of cheaper imported rice. The higher expected increase in government tariff revenue generated through RA 11203 will be more than enough to assist palay farmers and may be used by the government to increase the assistance to palay farmers through direct income support or through productivity assistance, e.g., the development of improved rice varieties that can withstand and adapt to rapid changes in weather conditions, in addition to the programmes specified under the Rice Competitiveness Enhancement Fund.
All told, the implementation of RA 11203 was a right policy move by the government to correct the distortion created by the rice QR that puts heavy burden on poor.
Caesar B. Cororaton is a Senior Research Fellow at the Global Issues Initiative of the Virginia Polytechnic Institute and State University. He has been working on global economic modeling focusing on regional trade agreements, country-level modeling focusing on policy reforms and poverty, and community-level modeling focusing on impact evaluation of policy interventions.
Krista Danielle S. Yu is an associate professor and research fellow in the School of Economics of De La Salle University. Her research activities centers on the development of quantitative models for disaster risk and vulnerability analyses, as well as on the economic impact of natural disasters. In 2016, she was recognized by Thomson Reuters as the Philippines Promising Star in Economics and Business. In 2017, she received the National Academy of Science and Technology Outstanding Young Scientist Award in the field of Economics.
Marites M. Tiongco is a Full Professor and Dean of the School of Economics at the De La Salle University in Manila, Philippines. Her research work focus on the impact of human and social capital on development and poverty, and on the economics of agricultural development with emphasis on critical natural resources and policy issues as they affect food security, food and water safety along the value chain, market access of smallholder producers, agricultural health and productivity, climate change mitigation and adaptation, and environmental sustainability.

The Pen earns its 5th star

MAKATI’S grand dame, The Peninsula Manila, has gained a five-star rating from Forbes Travel Guide thus making the Hong Kong-based Peninsula brand the first hotel company in the world to garner five stars across all its properties.
“It is extremely gratifying to know that The Peninsula Manila… has become the 10th and final Peninsula hotel [to earn the rating], allowing us to become the first hotel company in the world with all-Forbes 5-star hotels in their portfolio. This validates our company’s never ending pursuit to be the best in anything that we undertake,” Mark Choon, general manager of The Peninsula Manila, told BusinessWorld in an e-mail interview on Feb. 22.
The award, he added, was a “testimony to the daily commitment and passion for service we expect from each other as colleagues, combined with gracious Filipino hospitality.”
Fondly called The Pen, the 43-year-old hotel in Makati was the first Peninsula hotel to open outside Hong Kong.
Mr. Choon said what made them gain the award was their people.
“The difference — and our most valuable asset — are our people. We worked with our trainers and managers who helped develop a common mindset and the ‘grit’ necessary to get over the hurdles (consistency and personalization and service with heart) to achieve the Forbes 5-Stars,” he explained.
Not resting on their laurels after winning the rating, Mr. Choon said there will be “many exciting new changes in store for The Peninsula Manila which will complement our recent Forbes five-star designation.”
“We will undergo a soft room renovation of all of our guestrooms and suites, plus 2019 will see the creation of a new 100-seat Club Lounge in our Lobby 3rd Floor Gallery and we will introduce a new concept of becoming Manila’s Only ‘All Club Hotel.’ We plan to elevate the concept of luxury Peninsula service which we have been known for in 2019 and beyond,” he said.
According to the Forbes Travel Guide, the “inspectors highlights” are the hotel’s being a foodie destination “thanks to top restaurants Spices and Old Manila”; its service “from airport pickups in the hotel’s fleet of Mercedes-Benz S-Class vehicles to 24-hour room service and personalized amenities”; the spa whose “minimalistic aesthetic with bamboo-and-wood-paneled accent walls that transport you out of bustling Manila and into one of the Philippines’ breathtaking islands or jungles”; its being “a blissful oasis despite its location in the middle of Manila’s busiest district”; and its location “in the heart of Manila’s financial district has made it a favorite meeting place for international and Filipino businessmen and women.”
Aside from The Pen, Marco Polo Hotels Ortigas was also awarded a five star rating for a third year. It is the only non-gaming hotel in Philippines to have earned the rating for five consecutive years.
Other hotels in the country which recieved 5-star ratings this year are Nüwa Manila at City of Dreams and Sky Tower at Solaire Resort & Casino.
“At Forbes Travel Guide, we verify luxury. Our independent inspection process is the gold standard in the hospitality industry,” said Filip Boyen, CEO of Forbes Travel Guide in a press release.
“Discerning travelers can trust that each winner is the best of the best. We are pleased to honor the 2019 Star Rating recipients, an exceptional collection of hotels, restaurants and spas dedicated to guest service.”
The Forbes Travel Guide, established in 1958, is a global star rating service and online travel guide for hotels, restaurants, and spas. Anonymous inspectors evaluate “based on up to 900 objective standards” with “an emphasis on exceptional service, to help discerning travelers select the world’s best luxury experiences,” said the release.
The awards ceremony will be held at The Beverly Hilton in Beverly Hills, California on Feb. 26 and 27. — ZBC

Senate adopts House bill backing private-sector partners for farmers

THE SENATE has adopted the House version of the bill institutionalizing a Department of Agriculture (DA) program promoting partnerships between farmers, fisherfolk and the private sector.
House Bill No. 8857 or the proposed Sagip Saka Act enshrines in law the DA’s Farmers and Fisherfolk Enterprise Development Program.
The proposed measure encourages partnerships between the farmers and fisherfolk groups and the private sector “to improve market access of producer groups.” The Agriculture and Fishery Councils (AFCs) and the Philippine Council for Agriculture and Fisheries (PCAF) are also directed to provide mechanisms for private sector participation in the sector.
Private sector partners must be committed to enter into marketing contracts or buy-back agreements with their production partners and must be willing to provide technology transfer.
The program covers agricultural and fisheries production; acquisition of work animals, farm and fishery equipment; acquisition of seed, fertilizer, poultry and livestock; procurement of agricultural and fisheries products for storage, trading, processing and distribution; construction of related facilities; working capital for agriculture and fisheries graduates, agribusiness activities supporting soil and water conservation; and credit guarantee on uncollaterized loans to farmers and fisherfolks.
It also offers assistance to farmers and fisherfolk in the form of agricultural extension services, skills development, crop insurance, and business support. It covers the following areas: agricultural and fisheries production, acquisition of work animals, farm and fishery equipment, and the acquisition of seeds, fertilizer, poultry and livestock.
The measure exempts from donor’s tax organizations donating real and personal properties to farmers and fisherfolks. Real property tax exemptions from local government units are also provided to structures and warehouses with assessed value of less than P3 million used for the farm inputs and outputs.
Exemptions from income tax may also be given to farmer or fisherfolk-owned enterprises that are also registered as barangay micro-business enterprises under Republic Act No. 9178 or the Barangay Micro-Business Enterprises Act.
The bill also requires the national and local government to directly purchase agricultural and fishery products from accredited farmers and fisherfolk cooperatives and enterprises.
It also creates a Farmers and Fisherfolk Enterprise Development Council tasked to oversee the implementation of the program. It will be headed by the Agriculture Secretary and will be composed of representatives from the Department of Trade and Industry (DTI), Department of Interior and Local Government, Department of Finance (DoF), Cooperative Development Authority (CDA), national organizations of farmer and fisherfolk cooperatives or associations as well as from the agriculture, food, restaurant and business sectors. — Camille A. Aguinaldo

Yields flat ahead of RTBs

By Christine J.S. Castañeda
Senior Researcher
YIELDS on government securities (GS) were flat last week ahead of the government’s retail Treasury bond (RTB) offering.
On average, GS yields — which move opposite to prices — were up by 2.62 basis points (bp) week on week, according to the PHP Bloomberg Valuation Service Reference Rates as of Feb.22 published on the Philippine Dealing System’s website.
“Government securities yields ended mixed [last] week with some securities ending the week slightly higher, and others slightly lower, presumably due to the announcement of the five-year retail Treasury bond to be priced [tomorrow], with settlement date on March 12,” Carlyn Therese X. Dulay, first vice-president and head of Institutional Sales at Security Bank Corp., said.
She said the market expects yields on the RTBs to settle between 6.125% and 6.25%.
Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, shared this view, saying: “Market players were cautious for most of the week, wary about fresh supply given the possible RTB.”
In addition to the scheduled RTB offering, Michael L. Ricafort, economist at the Rizal Commercial Banking Corp. (RCBC), also attributed the slightly higher yields to “…wider budget deficit data for 2018 at -3.2% of GDP (gross domestic product) that exceeded the target of -3% amid increased government spending especially on infrastructure, somewhat hawkish signals from local monetary authorities on any possible cut in policy rates especially if inflation remains above the 2%-4% target, higher global oil prices hovering recently among the highest levels in about three months that led to some upward adjustments in local fuel pump prices…”
In an announcement posted on its website, the Bureau of the Treasury said it will offer peso-denominated five-year RTBs worth P30 billion starting tomorrow until March 8. This will be the first RTB offering for 2019 and the 22nd issuance overall.
On the other hand, the national government’s fiscal position posted a P558.3-billion shortfall last year, or 3.2% of the country’s GDP, data from the Treasury showed. This was wider than the P350.6-billion deficit in the 2017, and was higher than the P523.7 billion programmed for the year.
At the close of trading on Friday, yields on the 91- and 182-day Treasury bills (T-bill) went up by 6.3 bps and 1.9 bps, respectively, to 5.571% and 5.915%, while 364-day T-bill dipped by 2.2 bps to close at 6.097%.
At the belly of the curve, the two-, three- and four-year debt papers were quoted at 6.039%, 6.068%, and 6.096%, respectively, which were 2.4 bps, 4.3 bps, and 5.1 bps higher than the rates seen the previous week. Yields on the five- and seven-year bonds also rose by 4.4 bps and 0.4 bp, respectively, to 6.127% and 6.201%.
Yields on the 20-, and 25-year bonds also went up 0.5 bp (6.651%) and 8.8 bps (6.797%), while the 10-year paper declined by 3.1 bps (6.280%).
Looking forward, ING Bank’s Mr. Mapa said: “Market will take its cue from the RTB [this] week and inflation in the first week of March.”
“For [this] week, local benchmark interest rates could be steady to slightly higher amid the RTB auction that fundamental increases new supply of local fixed income securities and could somewhat fundamentally siphon off some excess funds from the market, including about P70 billion Treasury bonds that matured on Feb. 19, 2019,” RCBC’s Mr. Ricafort said.
“However, offsetting positive factors that could somewhat limit any further healthy/slight upward correction in local interest rate benchmarks, at the very least, may include market anticipation for the latest local inflation figure…,” he added.
February inflation data will be released by the Philippine Statistics Authority on March 5.

Wilcon to open eight stores this year

WILCON Depot, Inc. is aiming to open eight stores this year, as it ramps up its expansion to take advantage of the growing demand for home improvement and construction supplies.
Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan said the company is currently mapping out its next phase of expansion to reach its goal of having 100 stores.
“We’re thinking sana maka-100 pero inaalam pa namin kung anong year mapa-plot. We’ll average five to six (store openings) a year. This year we’ll have eight, then mag-taper off (in the next years),” Ms. Belo-Cincochan told reporters in a chance interview in Makati City last week.
The listed home improvement and construction supplies retailer had set a target of 65 stores by 2020, to be funded by the proceeds from its P7-billion initial public offering back in 2017.
Wilcon ended 2018 with a total of 51 stores. This year, it has opened one in Puerto Princesa, Palawan, bringing its current store count to 52. The next store opening for the year is scheduled in April.
Ms. Belo-Cincochan said the company is looking at both new and existing markets where it can further boost its presence.
She added that Wilcon is still bullish on the business’ prospects.
“Consumer demand is, I think affected ’yung consumer (business). We weren’t that affected cause we’re not fast moving consumer goods. People will still build houses,” she explained.
Asked on the company’s profit guidance for the year, Ms. Belo-Cincochan said they want to push for a double-digit profit growth. Same-store sales growth is also seen to be steady and in line with its 5% target in 2018.
Ms. Belo-Cincochan added that they are hoping that the Philippine economy, in light of the May elections, would show steady growth this year to boost business.
Wilcon launched earlier this year its digital store where customers can shop from a wide range of product categories, including appliances, automotive, building materials, electrical, furniture, home interior, outdoor living, sanitary wares, and hardware, among others.
The online shop is seen to complement Wilcon’s brick and mortar stores, in an effort to ride the growing e-commerce trend in the country.
Incorporated in 2015, Wilcon is a subsidiary of Wilcon Corp., which opened its first branch along Quezon Avenue in Quezon City in 1977. It operates two retail formats, the depot store format and home essentials format.
Wilcon saw its net income rise by 24% to P1.39 billion in the first nine months of 2018, following a 17.9% increase in net sales to P15.36 billion.
Shares in Wilcon slipped 0.84% or 12 centavos to close at P14.20 each at the stock exchange on Friday. — Arra B. Francia

Stocks trek higher ahead of corporate earnings

By Arra B. Francia
Reporter
THE MAIN INDEX managed to end in positive territory last week amid sideways trading for most of the period as investors awaited the release of more corporate earnings.
The 30-company Philippine Stock Exchange index (PSEi) rose 0.38% or 30.83 points to close at 7,962.13 on Friday.
On a weekly basis, the PSEi firmed up 0.67% or 53.24 points, supported by industrials’ 1.93% increase amid financials’ 1.8% plunge. The main index was also seen to trade within a much tighter range of 7,830 to 7,964, with a variance of 134 points, compared to the previous week’s 7,889 to 8,105, with a variance of 216 points.
Foreign buying averaged at P178 million last week on the back of an average value turnover of P8 billion.
“Here at the PSE, the main index ends the week flat as the investor sentiment remains cautious and as investors wait for more earnings reports to come in,” Eagle Equities, Inc. Research Head Christopher John Mangun said in a weekly market report.
“It basically continued its negative momentum from last week and if not for the bounce that we saw on Wednesday, it would have ended the week with losses.”
For online brokerage 2TradeAsia.com, the PSEi’s ascent was due to developments in the trade war between the United States and China.
“The market closed the week on the plus side, as hopes were kept afloat by positive hints on US-China trade discussion,” 2TradeAsia.com said in a weekly market note.
Investors have been closely watching the developments between US and Chinese officials to see whether they could arrive at a trade deal before their 90-day truce expires on March 1. US and Chinese negotiators held a two-day meeting in Washington from Thursday to Friday to arrive at a deal.
Reports over the weekend noted that Chinese negotiators had agreed to extend their stay in the US capital, with a statement from both parties saying there was progress in the negotiations.
While the US had initially threatened to increase tariffs on $200 billion worth of Chinese goods to 25% from 10% if they fail to agree on a deal by March 1, US President Donald J. Trump recently said he may not impose the increase on the said date.
Optimism on the trade deal propped up global equities markets abroad. Wall Street’s major indices were up on Friday, with the Dow Jones Industrial Average closing 0.7% higher or 181.18 points to 26,031.81. The S&P 500 index rose 0.64% or 17.79 points to 2,792.67, while the Nasdaq Composite index jumped 0.91% or 67.84 points to 7,527.55.
Local financial markets are closed on Monday to commemorate the EDSA People Power Revolution.

UA&P to launch agribusiness book on March 20

THE UNIVERSITY of Asia and the Pacific (UA&P) will launch a book by Rolando T. Dy, the head of its agribusiness studies center, on March 20.
The book is called Agribusiness: Pathways to Prosperity by Mr. Dy, a professor and the executive director of the UA&P Center for Food and Agribusiness.
The book contains 63 articles about agriculture from global and Southeast Asian perspectives and industry or business-specific concerns on the use of agricultural productivity to reduce poverty.
“Agribusiness: Pathways to Prosperity” is the fourth book written by Mr. Dy and is intended as a reference for agribusiness practitioners, economists, researchers, policymakers, students, and the public.
Mr. Dy’s earlier books are “Agribusiness and Rural Progress: Actions for Poverty Reduction” released in 2017, “Agribusiness and Inclusive Growth: An Expert’s Advocacy” in 2015, and “Food for Thought: How Agribusiness is Feeding the World” in 2009, along with other books he has co-authored.
Mr. Dy has been studying international agribusiness for nearly 40 years, with engagements in the ASEAN countries, especially Indonesia, Malaysia, Thailand, Vietnam and the Philippines.
Proceeds of the book sales will fund the scholars of UA&P’s Agribusiness Executives’ Program (AEP), of which Mr. Dy is the academic director. — Reicelene Joy N. Ignacio

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