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Turnover of units at Davao’s Aeon Towers faces delay

DAVAO CITY — Local property developer FTC Group of Companies Corp. is facing a one-year delay in the turnover of units for its 33-floor mixed-use Aeon Towers, but it is embarking on another project, this time a complex of five residential buildings.

FTC held the topping-off ceremony for Aeon Towers in late February 2017. At that time, FTC Group Chairman Francisco T. Cruz said the P3.1-billion building was 70% complete and they were aiming to hand over the residential units to buyers by end-2017 or January 2018.

Last week, however, Ian Y. Cruz, president of FTC subsidiary Aeon Luxe Properties, Inc., said the turnover of the condominium units is set for December 2018.

“Aeon is just a developer and part owner of the hotel, and Aeon Towers will be operated by a third party, Vanguard (Hotels). We launched Aeon Towers in 2011 and now we are running to 2018. The reason for the delay is we have to ensure the safety of our property… (Another) one of the causes of the delay is we have changed so many designs from the original one. Because we have to adapt to the trend now,” Mr. Cruz said in an interview with the media.

Mr. Cruz said the total project cost has reached P4.5 billion, including the hotel fixtures and furniture.

Aeon Towers — a mixed condominium, commercial and hotel project — would become the tallest operational building in Davao City and the rest of Mindanao once opened.

In February 2015, a 100-meter section of the road that borders the site collapsed, the second time after a similar incident took place at the same portion in September 2014. The second incident prompted the Department of Labor and Employment to issue a temporary stoppage order due to worker safety concerns.

In October last year, the project figured in another controversy when Davao City Mayor Sara Duterte-Carpio issued an ultimatum against the company for not immediately removing a crane on its rooftop, which the Civil Aviation Authority of the Philippines said exceeded the allowable height and was posing an obstruction and risks to flights coming into the Davao International Airport.

NEW PROJECT
Meanwhile, Aeon Luxe Properties will be developing Aeon Bleu, a five-building condominium complex on a 1.6-hectare property in the Bacaca area.

“Aeon Bleu, which is a mid-cost development, is going to be the first inland residential condotel resort living in the city,” said Andrew P. Bautista, Aeon Luxe Properties vice-president for sales.

Mr. Bautista said the company is targeting to launch the project within the second quarter this year.

“We are prepared to launch it anytime, as soon as we get our permits that are expected in less than a month now. We are now in the process of doing it at HLURB (Housing and Land Use Regulatory Board) and the (city) council,” he said.

The tallest of the five buildings would be 26 floors, he added. — Maya M. Padillo

Italian investor looks to rev up Shanghai Tang sales

MILAN — Italian entrepreneur Alessandro Bastagli set his sights on Shanghai Tang two decades ago and having finally bought the brand in 2017 from Richemont he aims to increase the group’s sales by 15-20% next year.

Bastagli told Reuters last Wednesday he will invest “an important amount” in the brand for its relaunch.

“We bought a Ferrari, we now have to spend money to fill the tank,” Bastagli said, declining to say how much was spent on the acquisition because of a confidentiality agreement.

The Swiss luxury conglomerate sold a controlling stake in the Chinese fashion group to a consortium of investors led by Bastagli last July.

Founded in 1994 by late Hong Kong businessman David Tang as a high-end tailor, Shanghai Tang sold Asian-inspired clothes for men and women as well as accessories and homeware.

The group now has €40 million ($49 million) in sales, and 16 boutiques in China, Singapore, and Macau, as well as some airport outlets. Its London shop was closed months before the group was bought by Bastagli.

The entrepreneur, who owns Italian brands that make leisure wear, aims to open “a couple” of European shops in the next years, ideally Milan, Paris, and London. The aim is to extend its reach in the West and target “Millennials” — young customers born between 1985 and 2000 — who account for almost a third of the luxury market.

Production of clothes and accessories has been moved to Italy while that of homeware items remains in China.

Bastagli concedes that a big investment will have to be made on communication, particularly in Europe, where the brand is less well known, positioning it in a “high-end niche… but not necessarily too expensive.”

The creative helm of the Asian brand was handed to Massimiliano Giornetti, creative director at Florence-based luxury group Salvatore Ferragamo until March 2016.

Giornetti told Reuters his first collection for Shanghai Tang, with Chinese-inspired details, quilted pieces, animal-print patterns, and damasqued silks, was a “dream-like trip between two millenary cultures that are linked by the Silk Road.”

Giornetti added that it was his intention to maintain the Chinese heritage but blend it with a contemporary look that would be appreciated by Western and Eastern customers alike. — Reuters

Globe deploys nearly 1,700 LTE sites

GLOBE Telecom, Inc. on Sunday said it has deployed close to 1,700 long-term evolution (LTE) sites using the 700 megahertz (MHz) nationwide.

“Aggressive deployment of LTE 700 sites has led to improvement in the country’s mobile speeds,” the telecommunications giant said in a statement.

The 700 MHz frequency and 2600 MHz band were among San Miguel Corp.’s telecommunications assets which were jointly acquired by Globe and PLDT, Inc. in 2016.

Globe said it also rolled out close to 2,000 sites on the 2600 MHz and 1800 MHz bands, with majority of the company’s LTE 700, LTE 2600 and L1800 sites deployed mainly in Metro Manila, Metro Cebu and Metro Davao where a high number of customers are using LTE-capable devices. Users with LTE-capable devices experience better LTE connectivity.

Using the 2600 MHz, Globe also fired up around 170 massive multiple input multiple output (MIMO) sites. It said the massive MIMO technology enables a mobile network to multiply the capacity of a wireless connection without requiring more antennas.

“The technology thus increases wireless throughput, accommodating more users at higher data rates with better reliability while consuming less power,” Globe said, adding that massive MIMO is also the fundamental radio access technology for fifth generation (5G).

The company recently said it has deployed one million broadband lines, halfway through its goal of two million lines by 2020.

The telco’s net profit fell 5% to P15.08 billion in 2017 despite record revenues, given increased investments in data network.

It may keep its $850-million capital expenditure (capex) for the next two years.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

A smartwatch that is both functional and fashionable

FOSSIL, the Texas-based timepiece brand, has introduced a follow-up to its smartwatch line called the third-generation Fossil Q.

Much like the second generation, Fossil has opted to provide a full display smartwatch and a more traditional hybrid to cater to the varying needs of the small, albeit growing market of smartwatch enthusiasts.

The proportion of the smartwatch business is small — around 2% — considering the thousands of traditional watches that Fossil has always carried, noted Judith Staples, head of marketing, fashion and sports division of the Luxent Group of Companies (the official Philippine distributor of Fossil) to BusinessWorld during the launch on Feb. 21 at the Alter Ego Restaurant in Quezon City.

Despite the small percentage, she said: “we have to face the fact that the market is evolving. It’s probably the reason why watchmakers invest in smartwatches, because they have to go with what the market wants.”

And so, the third generation Fossil Q smartwatches come with a slew of new features including a full-round touchscreen display for the Q Venture (11.5-mm case) and Q Explorist (12.5-mm case) line.

The full-display line also includes a high-res AMOLED display and the digital face can be customized with “over 30 exclusive Fossil Q watch faces” and information shown on the watch. It also has a Qualcomm Snapdragon 2100 processor and 4-GB memory as well as Bluetooth and Wi-Fi connectivity.

Interchangeable straps, a wireless magnetic charger, and integration to fitness apps like Google Fit among others, and a vintage arcade game also comes with the device.

The display watches retail from P13,910 to P15,000.

Fossil Q 2
Fossil’s Hybrid Smatwatch — Q in Alyx brown leather

ANALOG-LOOK OPTION
On the other hand, Fossil also offers an option for those who want a traditional analog face with smartwatch capabilities — the hybrid series.

Though it comes without a digital display, the hybrid watches inform the user of notifications via vibrations. It also keeps up with the user’s activities via the dedicated Fossil Q app. The three buttons can also be customized to fit the wearer’s preferred use — it can be programmed to control music, among others.

“From the way we analyze our local market, the younger people are more attracted to the display — they want the colors, they want all these different applications. For the more conservative people but [who consider themselves] techie, what’s important for them are the notifications,” Ms. Staples noted before adding that one of the draws of the hybrid watches is that it requires no charging and the battery can last for three to six months. It uses a normal watch battery.

Being smartwatches, the hybrids are dust and spill resistant but not waterproof.

The hybrid smartwatches retail for P9,150 and P10,300.

With a slew of wearable options currently in the market, Ms. Staples said that what Fossil prioritizes is fashion, with tech playing second fiddle.

“Our foundation is really fashion: if you look at other brands of smartwatches, they tend to be fashionable in terms of colors of the straps and case, but not as fashionable as you’ll see here,” she said, referring to Fossil’s versions. — Zsarlene B. Chua

PRDP backs Mindanao growers with nearly P400M

DAVAO CITY — Funding worth P398.63 million from the Philippine Rural Development Project (PRDP) has been allocated for 84 enterprise projects covering 15 commodities in Mindanao.

In a statement released over the weekend, the PRDP-Mindanao office said 77 of these projects, accounting for P363.16 million, have been approved while the rest are still being processed.

The PRDP is mainly financed by the World Bank with counterpart funding from the national government and implemented through the Department of Agriculture as lead agency.

The 15 commodities, which are covered under the PRDP’s Investment for Rural Enterprise and Agricultural Productivity (I-REAP), are abaca, banana, milk fish, cacao, cassava, coconut, oil palm, coffee, dairy, goat, mango, organic rice, rubber, seaweed and swine.

The I-REAP component of the program addresses the enterprise aspect of the crops being developed.

The south-central Mindanao area, or the South Cotabato-Cotabato-Sultan Kudarat-Sarangani-General Santos City (Soccsksargen) Region, took up the largest share of the enterprise budget at P123.49 million for 11 projects.

This covers the development of coffee in Tupi, South Cotabato, with the funding granted to the Tupi Coffee Growers Association, Inc. (TCGAI), specifically production improvement and marketing of dried green coffee beans.

“Through this project, we hope that the value of coffee farming and the lives of coffee farmers in the province will be elevated. Hopefully with PRDP, coffee growers in the entire South Cotabato would benefit and gain appreciation on the value of coffee as commodity,” said TCGAI President Marcos Gabat in the PRDP statement.

For the other regions, Caraga is receiving P69.57 million for nine projects; Northern Mindanao with P62.1 million for 33 projects; Davao with P56.30 million for seven projects; Western Mindanao (or Zamboanga Peninsula) with P28.43 million for seven projects; and the Autonomous Region in Muslim Mindanao (ARMM) with P23.26 million for 10 projects. — Carmelito Q. Francisco

Anbang mess tightens state grip on China Inc., according to analysts

SHANGHAI — Beijing’s unprecedented takeover of private insurer Anbang confirms that toxic risks lurk in the world’s second-largest economy while signalling the state’s tightening grip on China Inc. despite reform rhetoric, analysts said.

Government regulators seized control of the Anbang Insurance Group on Friday, saying its debt-fueled foreign acquisition binge left the company in financial peril and that high-flying founder and former chairman Wu Xiaohui would be prosecuted for fraud.

The takeover, to last at least a year, was the most striking step yet by regulators to rein in dizzying debt levels and a clear sign that the government saw something frightening in Anbang’s books.

“This move has huge significance. If something went wrong with Anbang it would lead to massive bad loans in the financial system,” said Beijing-based economist Hu Xingdou.

China has moved aggressively over the past year to slam the brakes on companies like Anbang, which ran up gargantuan debts to fund pricey overseas acquisitions.

Such companies have become known as “gray rhinos” — financial beasts that could charge quickly, with damaging results.

Despite expert warnings that China’s spiralling debt could spark a meltdown with global repercussions, the communist regime has steadfastly insisted that any risks remain controllable.

‘SERIOUS PROBLEM’
But a look under Anbang’s hood has clearly spooked Beijing, analysts say.

Anbang raked in cash largely by selling short-term policies promising some of the highest returns in the market, and rose from obscurity to quickly become one of China’s biggest insurers.

With the proceeds, the Beijing-based firm spent billions overseas, snapping up New York’s iconic Waldorf Astoria hotel in 2015 for nearly $2 billion, adding other pricey hotel and financial assets around the globe, and even making an aborted $15-billion bid for Starwood Hotels.

But Beijing’s clampdown on risky financial practices since 2016 crippled Anbang’s fund-raising.

“It’s a serious problem. There may now be a flood of redemptions coming through,” said Christopher Balding, a Peking University economics professor.

“If you are a $315-billion company like Anbang and have to write down even just 20% of your assets, that’s almost a $100-billion hole. That’s big even by China’s standards.”

Many Anbang holdings look likely to be sold off.

Attention will now shift to other acquisitive “gray rhinos” like HNA, Fosun and the Wanda Group.

Those companies have already been pulling back, with Wanda in particular selling off billions in assets recently to stay solvent, and are not yet seen as imminent government takeover targets.

GROWING STATE CONTROL
But the Anbang move sets a precedent of state intervention in the private sector that is expected to recur. President Xi Jinping has become the most powerful Chinese leader in decades by pushing a program of party control in all walks of life.

Fraser Howie, co-author of a book on China’s financial system, said Anbang’s takeover is a fresh example. In an essay, he wrote that government promises of economic reform to let market forces lead “really have no weight anymore.”

“While further regulatory takeovers may be unlikely, government-orchestrated bailouts and restructurings are almost certain to come,” Howie said.

“Xi’s China seems to care less and less about the distinction between the private and state sectors.” China’s debt crackdown is generally lauded as necessary to avert a credit crisis, but growing state control worries economists too.

It curbs the natural and healthy distribution of capital, and prevents an efficient modern economy from developing, said Julian Evans-Pritchard, China economist with Capital Economics. “China won’t be able to achieve the growth rates that it could with better resource allocation,” Evans-Pritchard said.

“State control gives the appearance of stability, but growth continues to slide and in a decade you’re at three percent growth.”

China’s GDP grew 6.9% in 2017, robust but well down from double-digit growth a decade ago.

BLAMING BEIJING
Anbang’s takeover also means that the Communist Party is now the ultimate owner of the Waldorf Astoria and other Anbang assets, and the specter of such state involvement could deter foreign regulators from approving some future Chinese investments overseas, analysts add.

With its vast war chest, China’s all-powerful government is expected to contain financial risks. But the current mess is Beijing’s own fault, said Balding, the Peking University professor.

Xi’s government and state media extolled the then-accelerating wave of overseas acquisitions just a few years ago, apparently oblivious of the risks. Chinese regulatory approval is necessary for major overseas acquisitions by the country’s firms, meaning regulators allowed many now considered questionable, he added.

“You have to lay the blame at Beijing’s feet,” Balding said. “Companies like Anbang clearly got drunk and got behind the wheel, but Beijing was plying them with beer and giving them the keys.” AFP

Yields on gov’t debt rise

By Jochebed B. Gonzales
Senior Researcher

DOMESTIC YIELDS rose, closely tracking the movement of US Treasuries (USTs) even as the national government partially awarded bonds at an unexpected higher coupon last week.

Bond prices dipped as yields on government securities ended higher on Friday, increasing by 11.40 basis points (bps) on the average week on week, data from the Philippine Dealing & Exchange Corp. showed.

“Yields went up by 15-37 bps across the curve driven mostly by higher US Treasury yields, which ranged between 2.91% and 2.93% levels [last week] (versus 2.875% area [in the previous week]),” said Carlyn Therese X. Dulay, Head of Institutional Sales at Security Bank Corp.

“The partial acceptance of the new 20-year [fixed income treasury note] issuance, which printed at 6.50% also forced the yield curve to align,” she added.

Helen G. Oleta, Trust Trading Head at Rizal Commercial Banking Corp. (RCBC) agreed, saying: “The local market followed the sideways movement of the 10-year US Treasury.”

“We also saw the awarding [of the 20-year Treasury bonds] a little above market expectation. For the latter part of the week, some end-users were moving the market as well,” she added.

Reaching four-year highs as it touched the 2.95%-level, the yield of the 10-year US benchmark bond traded within a 10-bp range even as last week saw a selloff in equities and the US Treasury raised its supply of government borrowings.

At the domestic primary market, the Bureau of the Treasury (BTr) only awarded P8.853 billion in fresh 20-year bonds against the P20 billion it offered last Tuesday. These securities fetched a 6.5% coupon rate, higher compared to the 5.035% fetched during the last auction of 20-year bonds in June 2017.

“It just shows how the BTr is now amenable to higher rates,” a bond trader said by phone, describing the result as “surprising.”

“Before, their tone is they have room to reject higher bids,” he added. “Now, they started accepting that the levels in the market — the yield curve — have adjusted.”

At the secondary market on Friday, Treasury bonds (T-bond) ended with higher yields week-on-week, led by the four-year note, which surged by 55.47 bps to 5.3036%. It was followed by the five-, seven- and 10-year T-bonds whose yields respectively rose by 16.05 bps, 16.61 bps, and 14.65 bps, finishing with 5.1368%, 6.6232% and 6.8554%.

The 20-year Treasury bond increased by 10.60 bps to yield 6.5628%, while the rates of the two-year and three-year papers climbed by 7.43 bps and 2.10 bps, respectively, to 4.1852% and 4.3003%.

At the short-end of the curve, the yield of the 91-day and 182-day Treasury bills (T-bills) fetched 11.65 bps and 4.61 bps, respectively, to close at 2.9012% and 3.0529%.

Only the yield of the 364-paper saw a decline, shedding 25.16 bps to 3.028%.

For this week, analysts said the market will continue to track US yields.

“Expect market to continue to track USTs and take its cue from the scheduled local T-bill auction with market indications at 5-10 basis points higher,” said Security Bank’s Ms. Dulay.

For RCBC’s Ms. Oleta: “If you follow the 10-year US Treasury, it’s on an uptrend. For the local market, we might be looking for the rate hike by the BSP (Bangko Sentral ng Pilipinas).”

Ghana risks 800,000 cocoa farmers’ ire with subsidies to end

THE GOVERNMENT of President Nana Akufo-Addo in Ghana will struggle to sidestep one of its most difficult decisions since coming to power a year ago: telling a crucial constituency to accept a pay cut.

The New Patriotic Party (NPP)-led government has little choice but to end subsidizing the prices it pays to 800,000 farmers, support that will likely cost almost $450 million this season. Ghana Cocoa Board, the industry regulator in the world’s second-biggest producer, is running out of cash with few options for funding left other than to sell short-term debt to local investors at rates as high as 22%.

Justifying a decision to end the support will be tricky. The NPP swept to power in the December 2016 polls after pledging to invest in farms and increase prices. The campaign paid off as the party won the four biggest cocoa-producing regions, compared with only one in the previous election four years earlier.

Farmers are unimpressed with the prospect of the government going back on its promises even though international prices have slumped by more than a third since the middle of 2016.

“If the government cannot afford to pay for its own loose talking, then it must borrow,” said Michael Acheampong, 37, a cocoa farmer in Kwabeng, about 120 kilometers (75 miles) northwest of the capital, Accra. “To announce a cut after promising to help us is a sacrilegious crime. We will not accept that.”

Ghana has little room to support prices even if rising output from new oil fields are supporting an economic revival. While the World Bank forecasts that the economy will expand by 8.3% in 2018, the fastest rate in Africa, the country remains bound by conditions for disciplined spending that are attached to an almost $1-billion bailout from the International Monetary Fund, agreed to in April 2015.

Ghana Cocoa Board is losing the equivalent of about $600 for every metric ton of the 850,000 tons that it plans to purchase this season until September, the regulator said earlier this month. When the next harvest starts, farmers will be paid the equivalent of 70% of the freight-on-board price for cocoa, Deputy Finance Minister Charles Adu Boahen said in January.

London futures contracts for March rose 0.5% to £1,518 ($2,121) per ton at 10:54 a.m., extending this year’s gains for most active contracts to 10%. Ghana has been paying farmers 7,600 cedis per ton ($1,700) since October 2016, an amount which excludes buyers’ fees, domestic and international freight costs and commissions.

The minimum price in Ivory Coast, the biggest producer, is the equivalent of $1,291 per ton.

To get by until next season, Ghana’s regulator will sell as much as 2.5 billion cedis ($559 million) of debt to pay for liabilities and operational costs. It will also be campaigning to explain to producers why their payments have to correspond with international trends, Boahen said.

“Paying realistic prices for cocoa is long overdue,” Edem Harrison, a research analyst at Frontline Capital Advisors in Accra, said by phone. The government “cannot spend money paying subsidies” and should prioritize spending on infrastructure and other programs that can support growth, he said.

Producers will not be convinced by the government’s arguments, said Courage Martey, an Accra-based economist at Databank Group. Very few past administrations have been transparent about a pricing policy because farmers are an important bloc of voters, he said.

Producers are not anticipating that the government will go through with the plan, said Johnson Mensah, head of a farmers cooperative in Enchi, a town near the western border with Ivory Coast. Cocoa is too important for Ghana for the government to make a decision that will set back the industry, said Boadi Yeboah, 69, who oversees a group of 2,000 farmers at Kwabeng.

“We have only heard rumors but neither the government nor the cocoa board has said anything to us,” Mensah said. “I don’t see farmers accepting reduced rates.” — Bloomberg

UA’s HOVR: Combo technology

RUNNING enthusiasts on the lookout for quality footwear to boost their performance may want to check out Under Armour’s latest line that features its new, cutting-edge cushioning technology called HOVR, which the high-performance sportswear brand said had runners in mind.

Officially launched in the Philippines last week, the UA HOVR is a cushioning platform, engineered to provide the ideal combination of cushioning and energy return.

It is the third cushioning platform from Under Armour, after Micro G and Charged Cushioning, which UA touts will deliver on runners’ needs to have a shoe that provides not only support but also energy return and shock absorption.

In the Philippines, the UA HOVR platform is initially introduced in two styles, namely the HOVR Phantom and HOVR Sonic.

“Running has been big all over the world. Even people you don’t expect going into it have started doing it even for short distances. We always had running shoes and we recognize the needs of the runners which is why we continue to develop technologies for our products,” said Yvonne Tey, marketing director of Under Armour for Southeast Asia, in an interview with BusinessWorld during the launch as she spoke of the main inspiration for the brand in coming up with the HOVR.

“We wanted to create a shoe that would go to distance without wearing you down. With all know it’s very humid in this part of the world and HOVR addresses comfort and breathability of the feet as one runs,” she added.

Both the Phantom and Sonic have the UA HOVR midsole which is made of a proprietary foam compound developed with Dow Chemical, providing a supersoft durometer with incredible cushioning and shock absorption with every single foot strike.

The shoes also boast of the “Energy Web,” a mesh fabric that wraps the cushioning core, to deliver strong responsiveness and energy return.

The combination of the two makes runners feel and perform better with less fatigue, UA said.

HOVR 2
The HOVR Phantom is for runners who want all-around cushioning.

The Phantom weighs 300.5 grams and has a plush and responsive ride for runners who want all-around cushioning. It has a knitted collar for superior comfort and adaptation around the ankle with a 5/8” collar and knitted sock-like feel.

The shoe has a microthread upper that dries fast and a 3-D molded midfoot panel with laser perforations for increased ventilation.

It comes in seven colorways for men and five for women spread in three drops. Currently, available colorways are Black/White/Red, White/Steel, and Pierce Red.

The Sonic, meanwhile, weighs in at 272 gm., with an 8-mm offset. It has a light and responsive ride, for runners who put distance first.

The shoe has a microthread upper and a unique tongue construction that is attached to the footbed by stretchable support wings to maintain a snug fit throughout the foot.

A ventilated midfoot panel increases the shoe’s breathability while the removable, anti-microbial sockliner molds to the foot for customized comfort and cushion.

It has four colorways for men and five for women spread in two drops. Available currently are white and red.

While the HOVR technology is found only in their running shoes for now, Ms. Tey said there plans to incorporate it into their other footwear lines.

The HOVR Phantom is available for P8,195 while the Sonic is P6,395 at Under Armour stores, Toby’s and Olympic Village as well as online at www.underarmour.com.ph.Michael Angelo S. Murillo

Approved foreign investment pledges

How PSEi member stocks performed — February 23, 2018

Here’s a quick glance at how PSEi stocks fared on Friday, February 23, 2018.

Mexican leader’s visit with Trump shelved over wall

WASHINGTON — Mexico and the United States have shelved tentative plans for a visit to Washington by President Enrique Peña Nieto as tensions persist over a proposed border wall, US media reported Saturday.

Mr. Peña Nieto had already cancelled a visit in January last year because of US President Donald J. Trump’s insistence that Mexico pay for the wall, which he wants as part of his efforts to curb immigration.

The White House had said in mid-February that the two presidents were working on arranging a meeting.

But The Washington Post, which first reported cancellation of the provisional meeting, said both countries agreed to call it off after a testy telephone call ended in an impasse over the border barrier.

The phone call took place last Tuesday.

Citing US and Mexican officials, the Post said Mr. Trump “would not agree to publicly affirm Mexico’s position that it would not fund construction of a border wall that the Mexican people widely consider offensive.”

Mr. Peña Nieto’s visit had been considered for February or March, the Post said, but the Mexican leader wanted to avoid public embarrassment.

Building the border wall was a primary pledge of the 2016 presidential campaign by Mr. Trump, who says the barrier is necessary for his country’s security.

Asked about the reports, a Mexican presidential source told AFP there would be no comment.

“There’s nothing additional to the last Tuesday statement,” the source said, referring to comments after the phone call.

Both countries said at the time that they agreed in their call to boost cooperation on security, trade and migration.

In addition to disagreement over the wall, Mr. Trump’s attacks on Mexican immigrants and threats to scrap the North American Free Trade Agreement have strained relations between the neighbors.

The leaders did meet once, on the sidelines of the G20 summit of major economies in Hamburg, Germany, last July.

Mexico goes to the polls this July as Mr. Peña Nieto approaches the end of his term, with his Institutional Revolutionary Party deeply unpopular. — AFP