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Startup helps Filipinos turn their kilometers into pesos

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By Almira Louise S. Martinez

MALAYSIA-BASED startup Carching Ventures Sdn. Bhd. has launched its service in the Philippines to help drivers earn from product ads while driving.

“It’s just doing what they’re supposed to do during the day, and they get paid by utilizing their car,” Carching Chief Operating Officer and co-founder Thalia Bondoc said in a Zoom interview last week.

Drivers in Southeast Asia including the Philippines, Singapore, Malaysia, and Indonesia face the same problems such as traffic jams and the rising cost of repairs, said Jeshua Choong, chief executive officer and co-founder of Carching.

Passive income from the Carching app could help them ease these costs, he pointed out. “They can earn passive income through advertising. We’re in the same traffic, we’re on the same road. Why can’t we earn the same money as well?”

Using the app, Filipino drivers can register for free by submitting a copy of their license and filling out the application forms.

The company, whose slogan in Malaysia is “Turning your KM into RM (Malaysian ringgit),” will then conduct a know-your-customer procedure to ensure applicants own or have permission to drive the car.

The ads, which are made of vinyl wraps, are then installed on the car body.

Drivers could earn as much as P2,000 a month once they reach their distance quota per campaign, Ms. Bondoc said.

Drivers can also pick the brands they want to advertise in their cars. “It will be like a little Tinder card — swipe left, swipe right,” Mr. Choong told Businessworld.

“The drivers become the ambassadors themselves because they are not forced to put whatever brands on the car,” he added.

Looking back at their journey, Mr. Choong said one of their clients sparked the idea of branching out in the Philippines.

“One of our biggest clients actually expanded to the Philippines and they were looking around and they can’t find a similar solution in the Philippines,” he said. This prompted Carching to assess the Philippine ad scene.

“How many hours do you get stuck on EDSA on a weekly basis?” he asked. “There are so many billboards there, media is still very traditional.”

In January, the Metropolitan Manila Development Authority said EDSA remained the busiest road in Metro Manila. About 400,000 cars pass through the highway daily, above its 300,000 capacity, the agency said.

Ms. Bondoc said entering the Philippine market was easy because drivers were already looking for other ways to earn, and brands were looking for more advertising avenues.

Although Carching has competitors, Mr. Choong said what sets them apart is their technology to provide the number of impressions generated during a campaign.

“We are able to track where all these vehicles go on a per-second basis,” he said. “We are able to get GPS pings of all the cars that we deploy and from there, we’ll be able to generate a heat map.”

“We also come out with our own algorithm to estimate how many cars you will pass by on different roads in Manila,” he added.

The Carching app has been downloaded about a thousand times on Google Play.

Mr. Choong said the company has given back $40,000 (P2.3 million) to their drivers in Malaysia and hopes to do the same in the Philippines.

The service is available in Metro Manila and aims to reach close to a thousand drivers by yearend, he added.

Philippine Merchandise Trade Performance (July 2024)

THE PHILIPPINES in July posted its widest trade deficit since March 2023 as imports grew at their fastest clip in three months, outpacing the uptick in exports, the Philippine Statistics Authority (PSA) reported on Tuesday. Read the full story.

Philippine Merchandise Trade Performance (July 2024)

Dollar falls before US inflation data, debate

A bank employee counts US dollar notes in this file photo, May 16, 2016. — REUTERS

THE DOLLAR edged down on Tuesday before US inflation data and the televised US presidential debate, which could affect expectations for the interest rate outlook.

A mixed labor report on Friday failed to make a clear-cut case on whether the Federal Reserve would deliver a regular 25-basis-point (bp) rate cut or an outsized 50 bps one at its Sept. 17-18 policy meeting. Traders were waiting for Wednesday’s US consumer price index report.

Barclays strategists noted that the greenback typically weakened ahead of Fed easing cycles and tended to overestimate rate cuts during soft landings. Still, they argued, a large part of its move was probably behind us.

Investor focus will also be on the highly anticipated televised US presidential debate later on Tuesday that could weigh heavily on the November election.

Investors expect the greenback to rise in the event of a Donald Trump victory, as tariffs would prop up the currency, and higher fiscal spending would boost interest rates.

The dollar index, which measures the US currency against six rivals, was at 101.59, down 0.06%.

Markets are fully pricing in a 25-bp cut next week, with a 50-bps cut priced in at 30%, down from as high as 50% on Friday, the CME FedWatch tool showed.

For 2024, traders expect 110 bps of easing, up from around 100 bps from the remaining three meetings.

Fed policy makers last week signaled they are ready to kick off a series of rate cuts, with Governor Christopher Waller arguing that he could support back-to-back cuts, or bigger cuts, if the data suggest the need.

Meanwhile, the euro was last at $1.1043 after dropping nearly 0.5% on Monday.

Investors were watching Europe’s political backdrop, mentioning the stalemate in France and heightened uncertainty across the EU bloc after German regional elections.

“The resilience of the euro this year can be partly explained by the region’s current account surplus and by the market’s nonchalance regarding the budget issues faced by various EU countries such as Italy and France,” said Jane Foley, senior forex strategist at RaboBank.

“However, in the second half of the year fiscal policy will be more in focus and this could affect the single currency.”

Economists at Barclays expect political fragility to hinder fiscal adjustments in the euro area in 2024-2025.

The European Union needs massive investment if it wants to keep pace economically with rivals, former European Central Bank chief and Italian prime minister Mario Draghi said on Monday, before calling for new sources of common funding which countries led by Germany have been reluctant to agree to.

“In our view, these issues (raised by Draghi) should provide a cap on rallies on the euro/dollar going forward,” RaboBank’s Ms. Foley argued.

The spotlight though will also be on the messaging from the ECB on Thursday after the policy meeting. Traders are pricing in 63 bps of easing this year from the ECB.

The dollar was up 0.15% at 143.42 yen, creeping away from the one-month low of 141.75 touched on Friday. The greenback fell 2.7% last week against the yen.

China’s yuan eased slightly on Tuesday, but losses were capped by better-than-expected export data.

Imports, however, missed forecasts and grew just 0.5%. That follows lower-than-expected inflation data published on Monday, highlighting still weak domestic demand.

The pound rose after UK data showed robust employment growth. It was last up 0.15% at $1.3095.

In other currencies, the Australian dollar was last at $0.66659, having touched a more than three-week low of $0.66445. The New Zealand dollar last bought $0.6155, staying close to the three-week low it touched on Monday. Reuters

Beyonce’s Cowboy Carter shut out of Country Music Award nominations

LOS ANGELES — Voters for the Country Music Awards (CMAs) snubbed superstar singer Beyonce’s album Cowboy Carter and showered singer Morgan Wallen with seven nominations on Monday.

Mr. Wallen will compete for entertainer of the year against Luke Combs, Jelly Roll, Chris Stapleton, and Lainey Wilson. Four of Wallen’s nominations came for the song “I Had Some Help,” a collaboration with Post Malone.

Winners of the CMAs will be announced at a ceremony broadcast live on ABC on Nov. 20.

In the spring, Cowboy Carter became the first album by a Black woman to land at No. 1 on the Billboard Top Country Albums chart. The single “Texas Hold ’Em” also became the first by a Black woman to claim the top spot on Billboard’s Hot Country Songs chart.

Beyonce had said that Cowboy Carter was born out of an experience in which she “did not feel welcomed” in the world of country music.

Experts and fans viewed the album as a reclamation and homage to an overlooked legacy of Black Americans within country music and culture. — Reuters

Pope Francis’ Asia trip is all about China

MAZUR-CATHOLICNEWS.ORG.UK

POPE FRANCIS is making an Asia-Pacific tour that’s about more than spreading the word or connecting with the devout. It is a run-through for the ultimate prize the Roman Catholic Church covets: a visit to China.

By some estimates, the world’s second-largest economy is on track to have the biggest population of Christians by 2030. The pope has been keen to engage with the Chinese Communist Party, which has historically controlled the appointment of bishops in the country, independent of the Vatican. This has led to worries of a schism, one of the many reasons the pontiff wants to unify China’s Catholics.

His overtures come despite the nation’s worsening track record on religious freedoms. Any future outreach can’t downplay these concerns, or compromise the Vatican’s diplomatic relations with Taiwan, one of the few remaining examples of recognition that the self-ruled island — which Beijing claims as its own — still has.

No pope has ever visited China, and the Holy See doesn’t have official diplomatic relations with it, despite pursuing closer ties over the last few years. The trip is being viewed as a way to engage with Beijing, but that shouldn’t discount the importance of Francis’ current tour to four Asian nations, many of which have sizeable Catholic populations: Indonesia (3%, 8 million),  Papua New Guinea  (26%, approximately 3 million), Timor-Leste (97%, 1.5  million), and Singapore — home to almost 400,000 Catholics, or 7% of the population, many ethnically Chinese — and the last leg of his historic voyage this week.

Still, China is watching very closely. The Communist Party is officially atheist, and forbids its members from having a religion. But that dogma has evolved over time and the current constitution, adopted in 1982, states that ordinary citizens enjoy “freedom of religious beliefs.”

What this means in practice, though, is that all faiths are under President Xi Jinping’s control. His Sinicization program, introduced in 2015, stipulates religious groups must adapt to socialism, by integrating their beliefs and customs with Chinese culture and political ideology. So in other words, you have the right to worship — but with Chinese characteristics.

“This is not the China of the past, there is no systematic enforcement of atheism now,” Michel Chambon, research fellow at the Asia Research Institute at the National University of Singapore, told me. “The party is not interested in how you celebrate Mass. Officials just want to ensure that Catholic networks cannot be mobilized against them.”

The relationship between the church and China is complex. Religion was essentially banned during the Cultural Revolution in the 1960s and ’70s, but flourished in the 1980s after the country entered an era of economic reforms. Roughly 2% of Chinese adults, or about 20 million people, self-identify with Christianity, according to the 2018 Chinese General Social Survey. Protestants account for roughly 90% of those, while the remainder are mostly Catholics.

A 2022 US State Department report pointed to some 10 million to 12 million Catholics, noting that many have to practice their faith in secret, away from the scrutiny of officials. Those who refuse to join the government’s Chinese Catholic Patriotic Association or pledge allegiance to the party were harassed, detained, imprisoned, or disappeared it found.

Reaching out to the faithful is one reason behind the Vatican’s overtures to China, but it’s also about winning hearts and minds among believers divided into two groups: one under a state-controlled church, and the other that worships in “underground churches” whose bishops are not approved by Chinese authorities.

The Holy See has been fighting a battle with Beijing about who gets to appoint bishops, and in 2018 reached a compromise — candidates recognized by both would be appointed. For the Vatican, it was a way to bring more Chinese Catholics into the fold, but some high-profile figures in the Church, including the now retired Cardinal Joseph Zen of Hong Kong, worried it had ceded too much power.

At the time, Zen told Bloomberg that the pontiff was too optimistic about the Chinese government, and warned closer ties “will have tragic and long-lasting effects, not only for the Church in China, but for the whole Church.” His remarks were prescient. In 2022, Zen was fined after being found guilty on a charge relating to his role in a relief fund for Hong Kong’s pro-democracy protests in 2019, which he denied. 

Taiwan is a pressing dilemma. The Vatican is among 12 diplomatic allies the island still has left. There are concerns these loyalties could shift, as the Holy See attempts to improve ties with Beijing. Regular meetings between Chinese clergy and their counterparts in Rome, a trend toward normalizing relations, and even discussions about setting up a “stable presence” by the Vatican in China, all point to an upgrading of that relationship.

Beijing’s efforts to switch international allegiances away from Taipei have been remarkably successful. Getting the Vatican on side would be a high-profile victory, but the Church has consistently maintained that it would never abandon Taipei. It is conceivable, given its religious authority, that it could have spiritual ties with both, and some Taiwanese have even asked the Holy See to press for “dual recognition.”

China won’t make that easy, given it’s animosity toward the island. The Vatican wants to bring all Catholics in China under its umbrella, but that cannot mean a compromise on issues of religious freedom, or a downgrading of its relationship with Taiwan. The Holy See is the island’s only diplomatic ally in Europe. A pope has never visited there, despite enjoying diplomatic ties for several decades. Casting aside Taiwan for growth in China would seriously damage the Church’s credibility as an upholder of spiritual principles.

The Vatican should be transparent about its agreements with Beijing rather than compromise to get deeper access in the country. Consistently voicing concerns about the treatment of the oppressed — a key moral value — should be part of any dialogue with the Communist Party.

As adherence to spirituality declines in the West, growth in the number of faithful will most likely come from Asia. Sacrificing principles for progress is not the way.

BLOOMBERG OPINION

Robinsons Ilocos hosts DFA Apostille Receiving Center

THE DEPARTMENT of Foreign Affairs (DFA) has opened an Apostille Receiving Center (ARC) in Robinsons Place Ilocos Norte mall to provide more accessible authentication services, according to Robinsons Land Corp. (RLC).

An apostille is an internationally accepted form of public document verification. It is attached to documents such as birth certificates, professional licenses, and school records.

“This is the very first ARC branch in Ilocos Norte and just the second Apostille Receiving Center in the country. The newest DFA ARC can be found at Robinsons Ilocos’ Lingkod Pinoy Center,” RLC said in a statement on Tuesday.

With the new facility, residents in the north no longer have to travel far or book online appointments in advance to get their documents verified, the company said.

The ARC is open to all citizens, not just those based in Ilocos.

“If it’s more convenient, one may also apply for the apostille at three other DFA consular offices based in Robinsons Malls, more specifically in Robinsons Iloilo, Robinsons Starmills (Pampanga), and Robinsons Galleria Cebu,” RLC said. — Aubrey Rose A. Inosante

Security Bank launches program for MSMEs beyond banking

ARENESTO DEGUEN making an infant's walker from ratan. — JASON HOUSTON FOR USAID/FLICKR

SECURITY BANK CORP. has launched a program to help its micro, small, and medium enterprise (MSME) clients with business registration and renewal, legal support and other services in their quest for growth.

The Philippine lender’s Beyond Banking Partnership program also provides timekeeping and payroll, business intelligence and data analytics, and tax filing services, as well as discounts and access to third-party partners, it said in a statement on Tuesday.

The program was announced at a signing ceremony with partners on Sept. 4.

“Beyond Banking is more than just a concept; it’s a commitment to going above and beyond traditional financial services,” Security Bank Senior Vice-President and Micro and Medium Head John David G. Yap said in the statement.

“It’s about creating a holistic ecosystem where our MSME customers can thrive in every part of their business journey. We’ve brought together a diverse group of partners who share our mission of being the most reliable partner for MSMEs in the Philippines,” he added.

The program includes partnership opportunities with Empleyado, which offers a cloud-based human resource system for employee records, attendance, salary management, and recruitment.

“Security Bank has helped expand our human resource information system platform to more organizations,” Empleyado Chief Financial Officer Arlyn Kim said. “Your commitment to innovation matches our goal to improve HR in the Philippines.”

Meanwhile, FilePino, Inc. helps entrepreneurs set up their business and expansion.

“Registering and renewing permits in the Philippines offers legal protection, access to financial resources, government support and networking opportunities,” FilePino President Marie Christine Duran Schulze said in the statement.

Another partner under the program is My-LegalWhiz, which provides virtual legal support to MSMEs without the resources for traditional legal services in labor, corporate governance, commercial transactions, and taxes.

“Bundling MyLegalWhiz with Security Bank’s services helps businesses focus on their strengths by providing excellent legal and financial support,” MyLegalWhiz President Dexter Feliciano said.

The program also includes SYCARDA, a business intelligence platform that turns data into insights to help businesses sell smarter.

“SYCARDA gives insights on customer behavior, spending patterns, operational efficiency and inventory management. We’ve helped many businesses increase revenue and cut costs,” SYCARDA Chief Executive Officer Vernon Chua said.

Meanwhile, Taxumo allows self-employed professionals, small business owners and corporations to file and pay taxes conveniently.

“Like Security Bank, we aim to empower businesses by offering seamless, efficient and hassle-free financial and tax solutions,” Taxumo Chairman EJ Arboleda said.

The Beyond Banking Partnership program was launched on the back of a 68% loan growth for the bank’s business banking segment after its launch last year.

Security Bank’s net income rose by 10.2% year on year to P2.82 billion in the second quarter amid higher revenue. — Aaron Michael C. Sy

Net Foreign Direct Investment

PHILIPPINE foreign direct investment (FDI) net inflows sank to an over four-year low in June amid lower placements across all instruments, the Bangko Sentral ng Pilipinas (BSP) reported on Tuesday. Read the full story.

Net Foreign Direct Investment

HSBC Philippines expects growth in all market segments amid rate cuts

HSBC PHILIPPINES expects to grow across all its market segments as expected rate cuts from the central bank spurs loan demand, its top official said on Tuesday.

“As interest rates are cut, one expects to see more capex (capital expenditures) activity in the market,” HSBC Philippines President and Chief Executive Officer (CEO) Sandeep Uppal told reporters.

Consumers are also expected to borrow more because loans and mortgage are cheaper, he said. “We believe we are well-positioned as the economic activity picks up on the back of declining interest rates.”

The Bangko Sentral ng Pilipinas (BSP) last month cut benchmark interest rates for the first time in almost four years amid an improving inflation and economic outlook.

The Monetary Board on Aug. 15 cut its policy rate by 25 basis points (bps) to 6.25% from a 17-year high of 6.5%.

BSP Governor Eli M. Remolona, Jr. said they could cut rates by another 25 bps within the year. The Monetary Board will meet again on Oct. 17 and Dec. 19.

Mr. Uppal said he expects HSBC to benefit from the Philippines’ economic growth.

HSBC Philippines expects the economy to grow by about 6% this year, hitting the lower end of the government’s 6-7% target. “That can be sustained, especially as interest rates are reduced,” Mr. Uppal said.

HSBC Philippines expects “strong” growth across its retail, wealth, and corporate segments.

Mr. Uppal said the bank’s retail side would be driven by the growing middle class, benefiting the lender’s consumer finance and credit card segments.

On the corporate side, Mr. Uppal said they are looking at funding companies that have been eager to expand internationally.

“A number of household names from the Philippines are investing overseas,” he said. “So we’re helping them go overseas. At the same time, a number of multinationals, especially in areas like IT (information technology), BPO (business process outsourcing), renewables, infrastructure and investing are coming in.”

Mr. Uppal said the bank faces risks from geopolitical tensions. “Obviously, the world is looking at the outcome of the US elections, so that provides uncertainty. I would say it’s more the unforeseen challenges,” he added.

Meanwhile, HSBC Philippines seeks growth opportunities in digital currency, he said.

“Clearly, that’s something we keep an eye on,” the CEO separately told the Management Association of the Philippines (MAP) International CEO Conference on earlier on Tuesday.

“But from the Philippine banking ecosystem perspective, it’s still very far off into the future. Our driving vision is to be the bridge to the world for Philippine corporates and Philippine individuals,” he added.

Mr. Uppal said HSBC Philippines would not be including every trend in the banking industry such buy now, pay later (BNPL) as part of its strategy.

“Is BNPL part of the strategy? Are we able to differentiate ourselves if we introduce that? Probably not,” he said. “We’d rather focus on what’s here now compared with something which is too far out.”

He added that he is “not a fan” of transformation since companies that undergo transformation all the time reflect indecisiveness or slack.

“Looking at your competition and environment and reacting to it on a daily basis is probably a much better strategy compared with coming up with a revolution,” he said. “Don’t change things too drastically, but do it one step at a time.” — Aaron Michael C. Sy

K-pop stars become models as fashion brands eye their global fanbase

INSTAGRAM.COM/GUCCI

LONDON/NEW YORK — designer Tommy Hilfiger browses through a rail of custom-made suits worn to this year’s Met Gala by K-pop stars Stray Kids, before opening up a tuxedo to reveal a special label.

The eight-member South Korean boy band are Tommy Hilfiger brand ambassadors and caused an online frenzy when they became the first K-pop group to attend the prestigious Manhattan fashion event in May.

“We did a special label ‘Tommy Hilfiger with the Stray Kids’ and they loved it, we loved it and I think it will go down in history as probably one of the most exciting projects we’ve had to date,” Hilfiger told Reuters ahead of his New York Fashion Week show on Sunday.

“We were, if not the most talked about brand at the Met Ball, one of the most talked about brands at the Met Ball… because the strength of what is going on in K-pop and for our association I think it was appropriate timing.”

Stray Kids are just one of an ever-increasing number of K-pop idols luxury fashion houses are enlisting as brand ambassadors as they seek to tap into their global followings.

Last year, around 30 K-pop stars were appointed as the new faces for labels including Versace and Dior, while in the last two months, Lisa of BLACKPINK, BTS’ Jin, and Karina from aespa were announced as brand ambassadors for Louis Vuitton, Gucci, and Prada respectively.

“(K-pop idols have) built their own following. They’ve built their own community … and so for when brands are working with them, they’re not only getting the press coverage of working with those K-pop stars but they’re getting that huge community of followers,” said Alison Bringe, chief market officer at data and technology company Launchmetrics.

“And because of these different voices that are supporting the K-pop stars, it is driving a phenomenal amount of media impact value that is considerably higher than Western celebrities.”

In a report on June’s Spring-Summer 2025 Menswear Paris Fashion Week, Launchmetrics said South Korea ranked as the third top region driving buzz, most of which was generated by South Korean celebrities.

K-pop stars are now among the most highly anticipated celebrities attending fashion week shows, and often draw the loudest cheers from fans waiting outside. As usual, many are expected this catwalk season.

“When you look at K-pop fans, they obviously like the members but they also like the glitz and glamour of K-pop … each group has its own kind of amazing style,” Lily of K-pop girl band NMIXX, brand ambassadors for Loewe, told Reuters.

“Fashion is very important to K-pop and K-pop is very important to fashion.” — Reuters

How PSEi member stocks performed — September 10, 2024

Here’s a quick glance at how PSEi stocks fared on Tuesday, September 10, 2024.


PSEi loses steam before close on profit taking

PHILIPPINE STAR/KRIZ JOHN ROSALES

By Revin Mikhael D. Ochave, Reporter

PHILIPPINE SHARES closed less than a point higher on Tuesday, with the main index testing the 7,100 level before succumbing to profit taking at market close.

The benchmark Philippine Stock Exchange Index (PSEi) added 0.005% or 0.38 point to close at 6,984.63. The broader all-share index gained 0.21% or 8.25 points to 3,786.30.

The PSEi reached as high as 7,109.75 before losing steam at the end of trading.

“The benchmark index traded strongly above 7,000 for most of the session until it succumbed to sharp market-on-close selling that pushed the PSEi below its major resistance to end the day just a slight notch above yesterday’s close,” Juan Paolo E. Colet, managing director at Chinabank Capital Corp., said in a Viber message.

The market closed only slightly higher as investors turned cautious, said Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc.

“Most gains were wiped out in the final minutes due to profit taking,” he said in a Viber message. “Investors also took a cautious stance due to the lingering uncertainties in the United States economy.”

“The market rallied intraday, even breaching 7,000 as investors remained hopeful that the Bangko Sentral ng Pilipinas will continue with its monetary policy easing moving forward in light of the country’s improved inflation situation and the likelihood of monetary policy easing by the Federal Reserve,” he added.

Luis A. Limlingan, head of sales at Regina Capital Development Corp., in a Viber message said local shares closed flat as traders await US consumer price index and producer price index reports due later this week.

Back home, the market’s sectoral indices were mixed. Property increased by 1.87% or 52.76 points to 2,861.99, while services added 0.99% or 21.76 points to 2,220.19. The industrial index gained 0.18% or 17.45 points to 9,280.67.

On the other hand, financials lost 1.7% or 37.33 points to 2,152.92, while mining and oil shed 0.61% or 48.56 points to 7,891.89. Holding companies dropped by 0.3% or 17.57 points to 5,817.51.

Value turnover improved to P7.26 billion from P7.12 billion, while shares traded fell to 776.85 million from 804.4 million.

Advancers beat decliners 111 to 82, while 65 stocks were unchanged. Net foreign buying fell to P759.26 million from P1.03 billion.

“The repeated failure to close above 7,000 should caution investors that there is a fairly high risk of a pullback from current levels,” Mr. Colet said.