A BARTENDER holds a measuring cup while preparing a Spritz cocktail in a café in central Rome, on July 17, 2018. Aperol is a historical brand which has existed since 1919 and had a strong growth but only in some regions in Italy. The Spritz tradition comes from the occupation of Italy by Austrian soldiers, who, when a wine was not very good or hot, added sparkling mineral water to it. — AFP
S&P GLOBAL Ratings sees opportunity for growth in the Philippine banking sector as lenders continue to expand their retail loan segments.
On Wednesday, the global debt watcher said it sees a lot of opportunities in the local banking industry in terms of lending diversification as the sector is still dependent on corporate loans.
“The main issue right not is that there’s a lot of concentration [in the corporate segment.] They have a lush conglomerate-focused loan books, Ivan Tan, S&P director for financial institution ratings, said in a webcast yesterday.
Mr. Tan added that the proportion of the lenders’ retail lending versus their total loan book is “extremely small.”
Despite this, the credit rater said local banks have recognized their small retail loan portfolios and in turn, are moving to ramp up their distribution network.
“The banks have recognized this for the last three to four years. They have been trying to diversify their retail and consumer loans as they ramp up their branch network,” Mr. Tan said.
Aside from branch expansion, better underwriting practices bolstered by the local credit bureau will also help banks balance their loan book to be more retail-focused.
“They also have a consumer credit bureau. That would facilitate the underwriting consumer loans.”
In May, the debt watcher upgraded its Banking Industry Country Risk Assessment score for the Philippine banking industry to “6” from the previous “7.”
It cited the state-led Credit Information Corp. (CIC) as the agency help the banks improve underwriting practices in the consumer loans segment.
“We definitely see a lot of opportunities in terms of rebalancing of loan portfolio from chunky corporate loans to a more balanced, retail-focused loan book,” Mr. Tan added.
In April, S&P revised upward its rating outlook for the Philippines to “positive,” hinting at a possible credit upgrade in the coming months.
The Philippines currently holds a “BBB” rating from S&P, a notch above minimum investment grade.
A higher credit rating improves the chances for a country to borrow funds from foreign sources at cheaper rates. — K.A.N. Vidal
MARCO POLO Ortigas Manila has launched its annual Mid-Autumn Festival offerings with Celestial Treasures, and this year’s featured mooncakes symbolize luck, prosperity, and honor. The Plum Blossom (set of four pieces) and Peony (half-dozen set) gift boxes are available at P2,588 and P3,588 respectively. Guests receive a 15% discount on orders received before Aug. 15. Meanwhile, as part of the hotel’s ongoing 4th anniversary celebration, foodies can feast on the flavors of the world with all-day dining destination Cucina for the discounted rate of P1,399 which applies to both the lunch and dinner buffet spread. Marco Polo Ortigas Manila is making the move towards becoming plastic straw-free — it now offers bamboo straws as an alternative to single-used plastic ones to reduce unnecessary waste. The hotel is working with socio-civic organization Bambuhay, which provides livelihood to communities in Central Luzon, to ensure all its restaurants and bars are without plastic straws. For details visit www.marcopolohotels.com
THE PENINSULA Manila and Toyo Eatery join forces for a months-long one-of-a-kind hotel staycation and dining experience called The Salu-salo Series Room Package. Each guest chef will partner with chef Jordy Navarra at his restaurant Toyo Eatery in Karrivin Plaza, Pasong Tamo Ext. in Makati City to create special, multi-course dinner menus two days each month, culminating on Nov. 14 at The Peninsula Manila’s Old Manila restaurant where Mr. Navarra teams up with Chef de Cuisine Allan Briones in a four-hands dinner. The dinners are: Nouri, Singapore with chef Ivan Brehm, four-hands dinner on Aug. 8 and 9; Restaurant Suhring, Bangkok with chefs Thomas and Mathias Sühring(No. 4, Asia’s 50 Best Restaurants), six-hands dinner on Aug. 16 and 17; Meme, Taipe with chef Richie Lin (No. 18, Asia’s 50 Best Restaurants; One-star Michelin Guide Taipei 2018), four-hands dinner on Sept. 26 and 27; JL Studio, Taichung, Taiwan with chef Jimmy Lim and Restaurant Labyrinth, Singapore with chef L.G. Han, six-hands dinner, October; Toyo Eatery, Manila with chef Jordy Navarra (Miele One To Watch Award — Asia 2018, Asia’s 50 Best Restaurants), four-hands dinner, Nov. 14. The package includes guaranteed seating for one person at a Salu-salo dinner in Toyo Eatery or Old Manila, on the night of the reservation and one welcome drink (additional fee of P5,000 per additional guest); accommodation in a Deluxe Room, Grand Deluxe Room, Club Deluxe Room, or a Premier Suite; a photograph with the featured chef on the night of the dinner; breakfast buffet for two adults in Escolta. Room rates start at P15,000 for a Deluxe Room. Valid for bookings on the following dates: Aug. 8 to 9; Aug. 16 to 17; Sept. 26 to 27; Oct. 6 to 7; and Nov. 14. Salu-salo Series Dinner seatings are at 6 p.m. or 8 p.m. only. For inquiries or reservations, call 887-2888, extensions 6630 (Room Reservations) or e-mail reservationpmn@peninsula.com.
ROMULO CAFÉ reinvents a classic Pinoy dish, sisig, with its Chicken Inasal Sisig which uses Chicken Inasal strips instead of traditional pork meat mixed with spices and chicken skin chicharon on top. The dish is now available in all Romulo Café local branches: Scout Tuazon, Tomas Morato, Quezon City; Jupiter St., Makati; and Azumi Hotel in Ayala Alabang.
STARBUCKS stores now offer new items from around the world. These include its take of the German pretzel, the Bretzel, which is topped with parmesan cheese and sea salt; a Ham and Cheese Toastie modelled after the French Croque Monsieur; a French Apple Tart; Chocolate Éclair and Chocolate Truffle Cake; Vietnamese Banh Mi, a wholesome sandwich layered with grilled chicken, ham and a rich smear of paté and a smattering of crunchy pickled vegetables on crusty Sriracha bread; and Chinese Char Siu Pork Baked Bao. Visit www.starbucks.ph to learn more.
FOR FOUR decades, Pancake House has been serving tried and tested recipes. Recognizing Filipinos’ whopping appetite for chicken, it offers six affordable Classic Pan Chicken Solo Plates for as low as P185. Pancake House’s Classic Pan Chicken dishes are available until Aug. 31. The six combos are as follows: Pan Chicken with spaghetti, garlic bread and iced tea; Pan Chicken with taco, rice and iced tea; Pan Chicken with Golden Brown waffle and iced tea; two pieces of Pan Chicken with classic pancakes and iced tea; Pan Chicken with French fries, rice and iced tea; and, Pan Chicken with mashed potato, rice and iced tea. Visit www.pancakehouse.com.ph/ for details.
IN JULY, a group of Japanese volunteers launched 10 Recipes to Stay Healthy, a recipe book on healthy food inspired by Japanese home cooking, to help address Filipino nutritional needs. The launch coincided with the Philippine government’s celebration of Nutrition Month in July. Japanese volunteer Ayaka Takagi under the Japan Overseas Cooperation Volunteers Program (JOCV) of the Japan International Cooperation Agency (JICA) together with former Japanese volunteers Yui Uneme and Momoe Nishizaki spearheaded the recipe book project along with seven other Japanese volunteers in the Philippines. “The recipe book is our contribution to the efforts of the Philippine government to encourage parents and children to improve the nutrition status of more Filipinos so they may live healthier and productive lives,” said Ms. Takagi, who was dispatched to the Office of the Provincial Agriculturist in Tagbilaran, Bohol. The recipe book introduced the health departments “10 Kumainments” — a set of nutritional guidelines for Filipinos — in the book to raise awareness on balanced diet and healthy living. The volunteers also showed how to use readily available local ingredients to come up with Japanese home cooking-inspired recipes. They also explained how to measure ingredients as some Filipino households do not have measuring implements. The book features recipes for okonomiyaki (pan-fried vegetable), oyako-don (chicken and egg bowl), udon (Japanese noodle), kaki-age (fried mix vegetable), and sweet squash. Copies of the book have been distributed to families, students, teachers, farmers, health centers, and government offices in the Philippines where the JOCVs are dispatched, including communities in Bohol, Samar, and Panay.
OREO THINS entered the Philippines in 2017 with the classic vanilla and tiramisu flavors. This year the Oreo Thins launches its newest flavor in the Philippines: Lemon Cheesecake. OREO Thins Lemon Cheesecake, Vanilla and Tiramisu are available in all stores nationwide at P41.50 per box.
Here’s a quick glance at how PSEi stocks fared on Wednesday, August 1, 2018.
By Vann Marlo M. Villegas
SECOND-QUARTER inflation, as reflected in goods and services widely used by low-income households, rose to 6.5%, its highest level in almost four years, led by utilities and staple food items, according to the Philippine Statistics Authority (PSA).
The inflation rate for the consumer basket configured for items likely to be purchased by the bottom 30% income category accelerated from 5.3% in the first quarter and 2.7% a year earlier. The second-quarter reading was the highest since the 6.8% posted in the third quarter of 2014.
For all households, the PSA is scheduled to report July inflation data on Aug. 7.
The Consumer Price Index (CPI) for the bottom 30% income segment reflects a heavier weighting for food, beverages and tobacco (FBT), to more accurately capture the spending patterns of the poor.
The PSA noted that all prices in those commodity groups rose at a faster rate in the second quarter.
“Annual inflation picked up in the second quarter primarily because of rising fuel costs and higher taxes on some products such as sugar-sweetened beverages and cigarettes,” said Guian Angelo S. Dumalagan, market economist at the Land Bank of the Philippines (LANDBANK).
“Weather disturbances and a weaker peso also played a role in pushing inflation higher,” he added.
Mr. Dumalagan was referring to the inflationary effects brought by the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which slashed personal income tax rates but also introduced additional levies on consumer goods such as fuel, cars and sugar-sweetened drinks.
Security Bank Corp. economist Angelo B. Taningco added: “The CPI inflation for the bottom 30% spiked in second quarter because of sharper price increases in food and tobacco as well as fuel, light, and water.”
“Food supply disruptions, higher excise taxes on tobacco, rising global oil prices, and peso depreciation have all contributed to the Q2 inflation for the bottom 30%,” he added.
For the quarter, the fuel, light, and water index led the charge as inflation in this segment was 8.7%, against the 6.1% recorded in the first quarter and 4.8% a year earlier.
The FBT index rose 7.1% in the second quarter compared to 5.9% in the first quarter and 2.8% in the second quarter of 2017.
The index for food only accelerated to 6.2% from 5.3% in the first quarter and 2.7% a year earlier.
The PSA noted a 10.8% gain in corn prices during the period compared with the 8.5% year-on-year increase in the first quarter. Higher annual mark-ups were also recorded in fruits and vegetables (7.5% from 6.5%), cereals (6.0% from 4.1%), rice (4.9% from 3.1%), cereal preparations (2.3% from 2.1%), dairy products (2.1% from 1.6%), and “miscellaneous foods” (2% from 0.6%).
On the other hand, price growth slowed though inflation remained high in meat (6.4% from 7.3%) and fish (11.1% from 11.5%). Price growth in eggs, meanwhile, remained steady at 2.1%.
Inflation for the bottom 30% segment in the National Capital Region (NCR) was 6.6%, accelerating from the 5.9% posted in the first quarter. Those outside the NCR saw a price pickup of 6.5% from 5.3% in the previous quarter.
On a quarter-on-quarter basis, inflation for the bottom 30% slowed to 1.4% from 2.8% in the first quarter, with the PSA noting that all commodity groups recorded slower quarterly increases during the period except for services and miscellaneous goods.
“This reflects the easing impact of the TRAIN law. In particular, price adjustments were much less in the second quarter as majority of the planned price hikes were already implemented in the prior quarter,” said LANDBANK’s Mr. Dumalagan.
Still, the economist expects “a higher level of inflation” in the third quarter due to rising fuel prices, “elevated” food costs, and a depreciating peso.
“Inflation might peak in July or August,” Mr. Dumalagan said.
Security Bank’s Mr. Taningco added: “I continue to expect inflation for the bottom 30% to remain elevated in the third quarter given adverse weather conditions, food supply disruptions, peso depreciation, high oil prices, and hikes in minimum wages and transport fares.”
