YIELDS on Treasury bills (T-bills) on offer today are seen to go down a tad as the market see indications a break in the central bank’s monetary tightening, although some upward pressure still remains over slower economic growth.
The Bureau of the Treasury (BTr) is offering P15 billion worth of short-dated government securities, broken down into P4 billion, P5 billion, and P6 billion for three-month, six-month, and one-year debt notes, respectively.
Traders interviewed noted that inflation has likely peaked already at the start of the fourth quarter, which means the central bank may hold off from hiking interest rates further. This could boost demand for the debt papers and, in turn, cause rates to go down.
“We expect yields for the Treasury bills to fall about slightly by five basis points (bp) primarily because we expect no rate hike, and because the peso is improving. There’s still demand on the short end,” a trader said in a phone interview on Friday. “Inflation might have been contained because of the month to month data which was at 0.3% from 0.8%.”
Inflation steadied at 6.7% in October from the same figure in September, in line with market expectations, but the nine-month average is still elevated at 5.1% — above the central bank’s 2-4% target band. The Bangko Sentral ng Pilipinas’ Monetary Board will hold its rate-setting meeting on Thursday.
Another trader however said yields may still go up as the third-quarter economic growth data was below forecasts.
“[I] expect T-bills yields to inch to 10 bps higher next week given that CPI (consumer price index) seemed to peak but GDP (gross domestic product) is below target. BSP may likely take a break in hiking rate,” the trader said.
GDP growth in the July-September period stood at 6.1%, slower than the 7.2% in the same period last year and a notch slower than the 6.2% second quarter figure. Analysts however expected a 6.3% print. The nine-month average is at 6.3%, from 2017’s 6.8% in the same period, is below the government’s target of 6.5-6.9% for the whole year.
Last week, the BTr fully awarded the P15 billion T-bills with tenders reaching up to P22.95 billion. Average yields rose by 10 bps across all 91-day, 182-day, and 364-day tenors as traders caution before the release of the October inflation data the day after.
The Treasury is raising P270 billion from the domestic market this quarter through auctions of securities, offering P180 billion in T-bills and another P90 billion in Treasury bonds. — Elijah Joseph C. Tubayan
LAGUNA — The onset of 6.7% inflation in September disrupted many people’s lives, not least of them the poor, who now have to make do with less. Inflation’s effects are visible to anyone who fills up his car with fuel or puts together a household budget or buys groceries. For those who spend most of their time in the online world, inflation has even become meme-worthy, with the price of the humble sili scandalizing the population and urban legends cropping up about commuters offering to pay their way with chili peppers, once so common as to be given away free at restaurants, now worth their proverbial weight in bus fare.
The visible impacts are obvious enough but perhaps the depth of the disruption remains under appreciated. High costs send businesses scrambling to find lower-cost suppliers, and governments wary of public unrest seeking to find ways to make grocery shopping less traumatic for the public. Technocrats struggle to control the narrative about what exactly caused inflation, denying that tax reform was the main culprit and blaming, among oher things, oil. Typhoons raise the prospect of massive supply disruptions as well as the brief promise of a bonanza for those growing the crop away from the path of destruction. Along the way, this race to find low-cost alternatives in the face of mounting inflation creates winners and losers, not to mention a slew of unintended consequences, though 6.7% price growth would suggest that times have become extreme and the fate of the losers, even more so.
Such is the backdrop for the perfect storm that last month hit the tomato farmers of Kalayaan, Laguna, a place which by rights ought to be perfectly situated to serve the agricultural needs of a nearby capital region. Why it didn’t realize a windfall after a storm effectively knocked out Luzon’s main vegetable-growing areas in the mountains of the north is a question that bears some unraveling, and the list of suspects is diverse: climate change, the misplaced optimism of farmers, the market competitiveness of food grown in upland regions, the creaky logistical arrangements not just between producers in Mindanao and consumers in Luzon, but between those in Laguna and Metro Manila, only a short distance away.
Months before typhoon Ompong (international name: Mangkhut) hit northern Luzon in mid-September, tomato farmers like Wilma C. Combes went into debt to plant tomatoes in Kalayaan, Laguna, which is on Laguna de Bay on the shore directly opposite the region’s natural market, Metro Manila.
Ms. Combes estimates that she took in debt of P200,000 earlier in the year to be able to afford to plant one hectare of land to tomatoes, paying 10-12% interest, with the loan due in six months, or after the crop is sold following the harvest. There was reason for optimism because a previous crop yielded her P200,000 on an investment of P100,000. The hope was for a hectare to yield 10 tons of tomatoes on average. All told, the farmers of Kalayaan planted 50 hectares to tomatoes.
The math was attractive: At 10 tons per hectare, a farmer will only need to clear a bit over P20,000 per ton to break even just on the loan; the better the price at market, the bigger the margin to pay for overhead and perhaps a good chance of clearing a tidy profit. There was even a reason to hope that Laguna’s position away from the normal track of late-year storms and the protection offered by the Sierra Madre range might shield the area from the worst of the typhoon damage that later befell other parts of Luzon
“Magandang pagkakitaan ang kamatis, marami kasing bumunga iyon. Kung kumita lang kami sa dami ng bunga nu’n, makakabayad kami ng utang. May tubo pa. Ngayon lang talagang lugi. Noong isang taon, kumita kami,” (The earnings potential from tomatoes is large because the crop generates lots of fruit, usually enough for us to pay our debts, and with a profit. This year we are in the red, unlike last year, when we made a profit”) according to Ms. Combes.
So what happened?
Another farmer, Vilma C. Cabus-Cabus, said the first sign of trouble was when traders started returning unsold produce after failing to dispose of the town’s shipments to wholesalers in Divisoria. The reason given was oversupply.
“Sa dami ng kamatis, hindi siya naubos sa market. Ang daming nagsobra na sa market. ‘Yung kamatis, kaya binalik diyan ng traders para paniwalaan ng farmers na hindi nabenta (There were a lot of tomatoes on the market and our crop was returned by the traders so the farmers would believe that they were not sold),” according to Ms. Cabus-Cabus.
“Sobrang daming dumating na kamatis nu’ng time na iyon, kung saan-saan nanggaling, nagkasabay-sabay na, (There was a surplus of tomatoes during that time, from all sorts of places, and they all came in at the same time),” Ms. Cabus-Cabus said.
Municipal Agriculture Officer (MAO) Liza L. Yee said that most farmers were not able to recoup half of their capital, and noted that oversupply makes farmers extremely vulnerable with no secondary markets to sell to.
Ms. Yee said the problem of secondary markets boils down to the absence of processing facilities that can take unwanted product off the farmers’ hands if they fail to sell the fruit in unprocessed form. The processor, which makes derivative products like canned tomatoes, tomato paste or ketchup, may not pay the best price compared to dealers selling whole fruit, but the surplus at least won’t be a total loss.
“‘Pag nag-oversupply, dapat may mga processing facilities kung saan mo dadalhin iyong sobra. Sana may mga processing facilities sila (When a crop is in oversupply, there needs to be a facility where you can bring the excess. I wish they had processing facilities),” Ms. Yee said.
But that doesn’t really answer the question of why a favorably-placed farming region can’t sell to its natural market at a time of perceived scarcity caused by a storm.
Recall the turbulent economic atmosphere of early September, and how it was becoming a serious political problem: August inflation had just hit 6.4%, the highest in nine years, and food prices were blamed alongside oil prices and tax reform. Worries about food were especially prominent following a high-profile scandal at the National Food Authority (NFA), which had somehow allowed its inventory of rice, a critical part of the Filipino diet, to be depleted. Thus relieved of the need to compete with low-cost rice typically purchased by the poor, commercial rice became the only game in town, and demand for it spiked. And that was even before the storm made landfall, on Sept. 15., traversing northern Luzon, doing serious damage to the road network and, not least, the vegetable growers of the Cordilleras, and making it clear to everyone that key parts of the food basket were going to become even more expensive.
The Department of Agriculture (DA) announced plans to ease the supply crunch by hosting farmer’s markets called TienDA, targeted at some of Metro Manila’s poorest neighborhoods. The TienDA model depends on direct sales from farmers that cut out the middleman, and sellers benefit from indirect subsidies because the DA supplies the sourcing and market-matching function and plays a role in logistics. Speculation quickly emerged about TienDA’s supply chain, with Kalayaan’s farmers, speaking not for attribution, picking up a rumor that Agriculture Secretary Emmanuel F. Piñol had chartered a cargo aircraft to bring vegetables from Bukidnon to Metro Manila markets.
Were low-cost, government-subsidized Bukidnon tomatoes responsible for the oversupply in Metro Manila after Ompong? For this to even be possible, one must assume that TienDA sales were more than a political gesture, and were sizeable enough to crowd out produce grown by unsubsidized suppliers closer to Metro Manila. In any event, the Department of Agriculture, asked to comment on the Bukidnon cargo plane speculation, said most of the TienDA vegetables were sourced from Nueva Vizcaya, a northern upland province which appears to have avoided the worst of the storm damage.
A Divisoria vegetable trader, Bowi Cortez, said in a phone interview that traders have long sourced seasonal vegetables from Cagayan de Oro (CDO), the port city serving the Bukidnon hinterland, and those orders coincided with high yields in the Laguna area.
“June to December, nanggagaling ang supply sa CDO. Bakit? Dahil rainy season ‘yan (in Luzon) (Between June and December the supply comes from CDO because it’s rainy season in Luzon).”
He said a shift in climate means more dry months for Luzon, when previously they used to be rained out for farming; suddenly more land became suitable for planting at, from a market point of view at least, the worst possible time.
Mr. Cortez said in typical years, Laguna can only produce during April and May.
“Ngayon, dahil nagbago na ang klima, nakapagtanim na sila ng rainy season. (Now that the climate has changed, they can plant during what used to be rainy season)… Kung susundin ang season na ang tag-ulan ay tag-ulan, nanggagaling lang ang kamatis sa CDO. (If we were following the traditional rainy season, the tomatoes would all be coming from CDO). Dahil siguro nakita nila na pinagkakakitaan ang kamatis ng ganyang panahon, maraming nagka interest na magtanim dahil gusto nila kumita (Because they saw that tomatoes can be profitable when planted out of the usual season, more farmers were interested in planting),” Mr. Cortez said.
Mr. Cortez said that the oversupply was also unfavorable for traders, who failed to fully recoup their costs shipping produce from Mindanao to Divisoria, plus workers’ pay and storage.
He said for traders, the math worked out as follows: “Namumuhunan kami ng P1,400 tapos binenta lang namin ng P300. (We invested P1,400 and we were able to sell at P300). ‘Di naman kami umo-order ng isang kahon. Ino-order namin per container, isang van. Ang isang van naglalaman ng 260 boxes (We don’t order by the box, we deal in container loads at one container van to 260 boxes.”
A provincial-level DA official thinks the tomato farmers knew the risks of planting too much tomato and may have been encouraged by the returns of previous years, while denying that they suffered losses to the extent claimed.
Laguna Agricultural Program Coordinating Officer (APCO) Antonio C. Visitacion doubts that the farmers lost as much as they are claiming, but conceded that they did not reach the expected earnings. “Nalulugi lang sila based sa kanilang assumption (They are only unprofitable relative to their initial assumptions of profit),” he said, noting that in previous plantings farmers earned as much as P500,000 and there were reports of individuals being able to pay for new vehicles with their proceeds.
“Sa agriculture production, masasabi nating nalugi kung tinamaan ng calamity, totally wiped out (You can only claim losses in agriculture when you’re hit by a calamity and your crop is totally wiped out),” he added.
He suspects freakish local supply conditions aided in part by favorable weather. “Simula nu’ng September hanggang ngayon, ang ganda ng climate dito sa CALABARZON (between September and now the climate has been good in CALABARZON), he said, referring to the region formed by the provinces of Cavite, Laguna, Batangas, Rizal and Quezon. “The moment na masira ‘yung Norte, ang supply nggulay partially manggagaling sa CALABARZON (The moment that the vegetable crop in the North suffered damage, the supply of vegetables was going to be filled partially by CALABARZON).”
So far, so good. The problem? “Kaso nga sa puntong iyon, nagsabay-sabay naman ng harvest… nagbaba ang presyo (However at that point, everyone harvested at the same time, and prices plunged”), Mr. Visitacion said.
Ms. Yee, the Kalayaan MAO, confirms this assessment of the weather. “Maganda talaga ‘yung naging klima, tsaka itong area namin, upland area ito… In-expect namin na kami ‘yung may magandang production (The climate was good in our area, and our farms were in upland areas as well. We were expecting good production),” Ms. Yee said.
Things came to the broader public’s attention when the farmers in Kalayaan, with TV cameras rolling, dumped a reported 10 tons in unsold tomatoes to protest their inability to find a market.
The Agriculture director for CALABARZON, Arnel V. De Mesa, denied that tomatoes were dumped in those volumes, estimating the actual quantity at about a tenth of what was claimed in television reports.
“Hindi siya tonetonelada. (It wasn’t in the tons),” Mr. De Mesa said. “Yung nakita nila roon is as little over one ton (What the news crews saw was a little over one ton).
He said when the shipments from Kalayaan were brought to Divisoria, the main wholesale market in Manila, “hindi na-absorb ng trader at tsaka ng merkado iyong ganung klase ng kamatis (the traders and the market were not able to absorb the supply)… Dahil hindi pa consummated iyong transaction, hindi pa bayad ‘yung kamatis na dinala sa Divisoria (because the order was not consummated at that point, the produce brought to Divisoria was not paid for), kailangan ibalik sa source para sabihin sa mga farmers na hindi nabenta o hindi nabili, kasi hindi iyon mababayaran. (the unsold produce needed to be returned to the farmers, because it was not paid for). Pagbalik doon ‘di alam ng farmers gagawin ‘yunng trader, dinamp ‘yung kamatis doon sa kalsada (The farmers never expected the traders to do that so when the tomatoes were returned they dumped the shipment in the street),” Mr. De Mesa said.
Mr. De Mesa said that the tomatoes of Kalayaan could have been sold locally or processed into ketchup or puree, though the produce had been dumped by the time the MAO and APCO found out about the protests.
“‘Yung ganoong karaming kamatis, pwede pa ‘yun, fresh pa, pwede pa sana ibenta sa palengke, o sa mga karatig bayan, through the coordination with our municipal agriculturist or provincial agriculturist (That quantity of tomatoes could have been sold in local markets through coordination with out municipal or provincial agriculturist),” he said, noting that the officials could have also helped arrange a sale to processors even outside the area.
Mr. De Mesa said stronger collaboration is needed among the region’s farmers and agriculture officials.
“Kailangan talaga pagplanuhan, hindi dapat sabay-sabay. (We need to plan and not plant the same things at once) Itong kamatis… alam nating pagka masyadong marami… kung gugustuhin nilang kumita ng malaki ay mahihirapan sila (With tomatoes, if the supply goes up, anyone who wants to earn a lot will have a hard time),” according to Mr. De Mesa.
In a final twist, Mr. De Mesa noted that three tons of the harvested Laguna tomatoes were actually brought to the DA’s TienDa market in Taguig and were offered at P20 per kilo. They sold out.
What do the economists, who presumably have seen it all, make of all this?
University of Asia and the Pacific (UA&P) Center for Food and Agribusiness executive director and professor Rolando T. Dy said supply disruptions “will happen,” and the general areas that need to be addressed include “imperfect information, logistics to market, area competitiveness, seasonality, climate change, etc.”
Marites M. Tiongco, dean of the De La Salle University (DLSU) School of Economics, who specializes in agricultural economics, said government agencies like the DA and the Department of Trade and Industry (DTI) must collaborate to manage supply and demand disruptions in agriculture.
“Problema ngayon sa ating mga government agencies, wala pa siyang coordination, convergence. Produce, produce, produce, pero pagdatingsa marketing, wala. Marami kang supply pero wala kang market (The problem with government agencies is that they have no coordination or convergence of policy. They are focused too much on production but the marketing functions are wanting. So when there’s a lot of supply, sometimes the produce has no markets),” Ms. Tiongco said, noting that the farmers in Laguna even used a high-yielding type of seed which was introduced by the DA.
“‘Yung role ng DTI, kahit ng DA, ay mag-provide sila ng postharvest facilities, ‘yung pwede mo silang ma-preserve (The DTI and even the DA have to play their part in providing post-harvest facilities to preserve the unsold crop),” according to Ms. Tiongco.
Ms. Tiongco said oversupply conditions do not happen only in Laguna but in other farming areas as well.
“Problem talaga iyan ng ating government kasi putol ang kanilang chain. Ang DA bahala sa increasing production, ‘pag nag high yield na siya, walang sasalo roon (The problem with the government is that the chain is broken. The DA is in charge of increasing production, but when it brings yields higher, there is nothing to absorb the crop),” she said. “It has been so many years na ganyan ang problema, bumabagsak ang price kasi sobrang dami wala namang pagbebentahan (The problem has been there for so many years — prices fall because supply is excessive with no markets to absorb the crop,” she added. “‘Pag harvest time, oversupply talaga siya, summer time usually iyon. ‘Di lang naman iyan nangyayari sa tomatoes, pati rin sa ibang commodities (During harvest, oversupply conditions are typical, usually in the summer. It happens with many commodities, not just tomatoes),” Ms. Tiongco said.
Ms. Tiongco held up as a model the trading posts of the Cordillera Administrative Region (CAR), which can take up the produce from nearby farmers, sparing them the need to find distant markets. She added that the relationship between farmers and traders needs to be regulated to avoid situations like the consignment deal that left the Kalayaan farmers on the hook for unsold goods.
“Dapat may mga contracts man lang ‘yung traders and farmers, na ‘pag ‘di mo nabenta, you still have to pay (the farmer) kung ano ang minimum kung consignment siya (There need to be contracts between traders and farmers that guarantee minimum payment),” Ms. Tiongco said.
By Mark T. Amoguis Researcher
YIELDS on government securities (GS) went down last week after the release of steady October inflation as well as slower third-quarter economic growth data, which may prompt the central bank to moderate its policy tightening at its meeting this week.
Debt yields, which move opposite to prices, dipped by a week-on-week average of 12.5 basis points (bps), according to the PHP Bloomberg Valuation Service (BVAL) Reference Rates as of Nov. 9 published on the Philippine Dealing System’s Web site.
Carlyn Therese X. Dulay, first vice-president and head of Institutional Sales at Security Bank Corp., said last week’s yield movement followed the release of the October inflation print and the third-quarter gross domestic product (GDP) figure.
“This emboldened market participants and end clients onshore and offshore to take positions,” she said.
Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, agreed: “This week-on-week decline may have seen more stable factors such as the positive sentiment that inflation may have already peaked. Another possible driver is the still respectable, but slower, Q3 GDP growth result.”
He added that other external factors that may have influenced yields last week such as the US midterm elections and the continuing saga of the trade war between the US and China.
For his part, Nicholas Antonio T. Mapa, senior economist at ING Bank NV-Manila Branch, said: “Risk sentiment for bonds and currencies has improved considerably in November with global developments relatively positive.”
The Philippine Statistics Authority (PSA) reported last Tuesday that the increase of prices of widely used goods steadied in October amid high food, transport, and utilities costs.
October inflation printed at 6.7%, steady from September and picking up from 3.1% a year ago.
It matched the median of BusinessWorld’s poll of 15 economists and fell within the 6.2-7% forecast range given by the Bangko Sentral ng Pilipinas, but was faster than the 6.5% estimate of the Department of Finance.
The latest reading brought year-to-date inflation to 5.1%, beyond the BSP’s 2-4% target albeit below the 2018 forecast of 5.2%.
In a separate report last Thursday, the PSA said the economy grew at its slowest pace in three years during the July-September quarter due to dampened household spending brought about by high inflation as well as the agriculture sector’s decline.
GDP grew by 6.1% annually in the third quarter, slower than the 6.2% in the April-June period and the 7.2% posted in the third quarter last year.
This was slower than the 6.3% median estimate in the BusinessWorld’s poll of 15 analysts and the slowest pace since the 6% recorded in the second quarter of 2015.
Economic growth averaged 6.3% in the first nine months, below the government’s revised 6.5-6.9% target range for the year.
GS yields declined across all tenors, except for 91- and 182-day debt, which went up by 7.4 bps and 3.3 bps, respectively, fetching BVAL rates of 5.172% and 5.948% at the close of the market last Friday.
The largest decline was recorded in the seven-year note, which went down by 29.5 bps to 7.553%. It was followed by five-, four-, 10-, 20-, and three-year bonds, which fell by 28.5 bps, 21.6 bps, 20.0 bps, 19.7 bps, and 12.5 bps, respectively, yielding 7.274%, 7.133%, 7.814%, 8.142%, and 6.979%.
Yields on 25-, two-, and one-year notes also declined by 7.5 bps, 4.9 bps, and 4.2 bps, respectively, to 8.37%, 6.77%, and 6.522%.
For this week’s trading, ING’s Mr. Mapa said: “Market will be looking to the BSP meeting for direction.”
Security Bank’s Ms. Dulay expects GS yields’ levels “to stay rangebound until there is clearer direction from the MB (Monetary Board) meeting.”
The policymaking body of the central bank, the Monetary Board (MB), is scheduled to hold its review on Nov. 15, Thursday.
In late October, BSP Governor Nestor A. Espenilla, Jr. hinted on a “moderate” policy tightening for this meeting.
Meanwhile, MB Member Felipe M. Medalla has said monetary authorities may “take a pause” should latest month-on-month inflation show signs of easing.
Since May, MB has implemented rate hikes worth 150 bps, bringing the benchmark rates to 4-5% range, to temper rising inflation.
THE Bureau of Fisheries and Agricultural Resources (BFAR) said that the Philippines has to develop markets for tilapia, a widely-cultivated fish, amid a consumer preference for galunggong, or round scad.
Speaking to reporters, BFAR National Director Eduardo B. Gongona said, “Tilapia growing is well-developed. What we have to develop is the market.”
Mr. Gongona said that among widely-available protein sources the clear leader is galunggong, while many other countries also produce tilapia, which means the export market will be tough to penetrate.
“Producers want to produce more, but the problem is markets. We need to export. There is a lot of competition. The US would rather import from South America because the costs are low, but our tilapia is better-tasting,” Mr. Gongona said.
Mr. Gongona also noted that Philippine is also smaller.
“The genetics should be improved because what we have now is table tilapia. It should be bigger so it could be suitable for value-added activities,” Mr. Gongona said, noting that bigger fish make for a better filleted product.
In an email, the Acting Executive Director of the Department of Science and Technology’s Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (DOST — PCAARRD), Reynaldo V. Ebora, said that the Philippines has quality tilapia strains such as the Freshwater Aquaculture Selected Tilapia (FAST), Genetically Improved Farmed Tilapia (GIFT) and Genetically Enhanced Tilapia.
“To have export-quality tilapia and compete in the international markets, there is no need to change the existing tilapia strains in the country,” Mr. Ebora said.
“Genetic improvement is just one facet in the development of the tilapia aquaculture industry. There is also a need to reduce mortality due to parasites and diseases and provide nutritious and affordable feeds. Increasing the profitability of tilapia farming can be achieved only with improved hatchery techniques, promotion of nursery systems to produce post-fingerlings for stocking, and a more efficient farming system,” Mr. Ebora said.
According to the Philippine Statistics Authority (PSA), the Philippine aquaculture industry produced 18,401.64 metric tons (MT) of tilapia in 2017.
Mr. Gongona also said there is a need for more production of male tilapia as the male grows more rapidly, cutting time to market.
In a presentation by Mr. Ebora during the Science Policy and Information Forum 2018: Caring for our Galunggong and Tilapia Fisheries for Food Security, he said that PCAARRD employs phytoandrogens from pine pollen, an environment-friendly natural product used to change functional female tilapia into functional males.
“Increased tilapia production from aquaculture is possible if information on advances in husbandry, genetics, systems, water, nutrition and health management, harvest and post-production are effectively disseminated and adopted by farmers,” Mr. Ebora said.
Mr. Ebora said that PCAARRD started distributing to farmers an updated compilation of latest technologies in the breeding and farming of tilapia. — Reicelene Joy N. Ignacio
GOING ONLINE isn’t the only big news to have come from Kiehl’s as the brand launched last month its newest product meant to beef up its mask line — the Ginger and Hibiscus Firming Mask.
“We currently have a hydrating mask, one for radiance, and if you think about it, it’s only right that we also try to complete the different benefits we can offer through masks,” Joan Hwang, Kiehl’s Philippines product manager, told BusinessWorld during a media preview in October at Okada Manila, Pasay City.
She described facial masks as the “new frontier” now that people are more knowledgeable about skincare and know how to use serums and moisturizers in their routines.
“It could also be because of Korean beauty trends — it became popular that’s why Kiehl’s has to come up with our solution,” she said.
Korean beauty companies commonly promote a frequent masking routine — sometimes, even every day — to ensure healthy, glowing skin.
The Ginger and Hibiscus mask is also the brand’s first sleeping mask and is priced at P3,350 for 100ml.
(Sleeping masks are masks used at the end of a nighttime routine and are only washed off upon waking up.)
The product, which is light mauve in color, has a balm-like texture and is said to “help smoothen and firm skin with hibiscus seed extract and sustainably sourced ginger leaf,” according to the product description on the BeautyMNL site.
The product is also said to make the person wake up to skin that “feels and looks smoother.”
The company said it can be used every day for five days, and you bet that’s what this reporter did when she got a sample from the launch.
For almost a month, I used the mask religiously (you only need a small dollop to cover the entire face) and observed on the first few days that I did get minor breakouts around the chin area but chalked it up to my skin adjusting to a new product in a my extensive routine (I have a seven-step routine that involves two serums and two moisturizers because I have very dry skin).
And then I remembered Ms. Hwang recommended using the mask as a substitute for moisturizer and I cringed because I couldn’t do without a moisturizer — but I removed one of my moisturizers and a serum from my routine and after another week, the breakouts calmed down and I could feel that my skin was a bit firmer and moisturized.
So I took it a notch higher and further simplified my routine to only Kiehl’s products for an entire week — the Calendula Deep Cleansing Foaming Wash (P1,725 for 230ml), Calendula Herbal Extract Alcohol-Free Toner (P2,425 for 250ml), Creamy Eye Treatment with Avocado (P1,725 for 14g), Midnight Recovery Concentrate (P2,825 for 30ml), and, finally, the Ginger mask, in that order.
Was I going too far? Yes, but I like to call it commitment.
And I could say that the combination worked better for me when I used the mask with the brand’s other products — my skin wasn’t dry and there were no breakouts.
Do note that it is important to let all the products you put on your face time to sink in — a minute or two per product is okay — especially when using the mask after the Midnight Recovery Concentrate because in my experience, when put on too early, the mask doesn’t apply well and flakes into little balls, which really isn’t a good look.
The question now is, will I revamp my routine for this mask? No, but I will concede that I will probably do this on weekends to rejuvenate my often tired skin, because if we can’t remove stress from our lives, at least our skin can give the world (and ourselves) the illusion that we are living our best lives. — Zsarlene B. Chua
ABS-CBN Corp. said it has expanded the coverage of its digital terrestrial television (DTT) service to include Batangas.
“Batangas is the 16th signal coverage area of ABS-CBN TVplus, accelerating further the network’s mission to lead the country’s migration from analog to digital before the government mandated deadline for all broadcasting companies to switch to digital broadcast by 2023,” the Lopez-led media giant said in a statement over the weekend.
The country is undergoing a shift to digital television by 2023. The government plans to switch off the analog system under its Digital Terrestrial Television Broadcasting Migration Plan that started last year.
ABS-CBN said it has already sold 6.2 million units of ABS-CBN TVplus since it was launched in 2015. In Manila, the company said 71.6% of non-cabled households have already moved to adopt the DTT product as of August this year from 55% in the same month last year based on an establishment survey from Kantar Media.
It also said DTT penetration in Mega Manila has reached 64.7% of non-cabled households as of August from only 44% last year, and 57% of households in the suburbs this year from only 33% last year.
“ABS-CBN TVplus continuously expands its signal coverage areas that also include Metro Manila, Bulacan, Nueva Ecija, Pangasinan, Rizal, Laguna, Pampanga, Tarlac, Benguet, Cavite, Metro Cebu, Cagayan De Oro, Iloilo, Bacolod, and Davao,” it added.
GMA Network, Inc. also revealed its plans earlier this year to come up with its own DTT product that would convert analog television to digital. The listed firm said it is investing P700 million for the project and is tapping a manufacturer in China for the device. — Denise A. Valdez
FOR THE 35th anniversary of Carolina Herrera, it’s taking the founder’s initials seriously in a campaign called the “Insignia.”
The campaign includes an exhibit shown at the Maybank Performing Arts Theater at BGC during a launch late last month. The exhibit featured celebrities from different fields, such as actresses Heart Evangelista and Lovie Poe, chefs Josh Boutwood and Bruce Ricketts, to designers Kenneth Cobonpue and Ken Samudio.
It also served to launch Carolina Herrera’s line of new handbags, all featuring Ms. Herrera’s CH initials. The bags include the casual insignia bag, the top-handled Victoria bag (the initials are embossed on the leather), and beaded clutches with the clasp displaying the initials. Jewelry in the shape of CH, including bracelets, rings, and earrings, were also shown during the event.
In the Philippines, CH Carolina Herrera is located in Greenbelt 5. According to Obee Ham, Business Development Head for the Trimark group (which brought the brand to the country), “We’re the number one in Asia now,” speaking about the location’s performance a year after opening. — JLG
GLOBAL market research agency Ipsos is focusing on developing talents in emerging markets like the Philippines, as it continues to strengthen its presence in Southeast Asia.
The Paris-based firm announced last week that it has opened its second office in the country at the Bendel Center in Mandaluyong City, alongside the relocation of its main office to Rockwell Business Center Sheridan, Sheridan corner United Streets in Mandaluyong as well.
“This is a milestone for Ipsos in the Philippines. We always strive to deliver excellent service to our clients and to be more efficient in our operations. This expansion will positively impact us in our quest to better understand people, society, and markets,” Ipsos Philippines Managing Director Marie Lee said in a statement.
The company’s services include marketing research, client and employee relationship management, media and advertising research, and opinion and social research, among others.
The establishment of the new offices forms part of the company’s commitment to grow its network worldwide. The company has recently acquired four global divisions of American research firm GfK Custom Research Business, with a footprint in 26 countries including Australia, China, India, Japan, and Singapore.
Ipsos has also negotiated with mystery shopper firm Market Pulse International to acquire its staff, clients, and shopper panelists in Australia, New Zealand, and Thailand.
“Our key priority for the Southeast Asia Market is talent mentorship and development, coupled with laser sharp client focus, and providing innovative solutions,” Ipsos Southeast Asia Chief Executive Officer Suresh Ramalingan said in a statement.
Ipsos has been in the Philippines since 2011. The company also has offices in Cebu and Davao aside from its Manila operations. — Arra B. Francia
THE PESO could weaken and go back to the P53-per-dollar level this week as market players expect strong economic data in the United States, although eyes are also on the local central bank’s rate decision due on Thursday.
The local unit closed at P52.96 on Friday, 39 centavos weaker than the P52.57 finish the previous day which was a five-month high. Week on week, the local unit appreciated coming from a P53.535-per-dollar rate logged last Oct. 31 but ended a five-day rally.
Traders sought for comment said the peso could depreciate further in response to a stronger dollar.
A bond trader said the currency will likely see a “correction” following the sudden and substantial drop, and in the absence of big-ticket inflows logged early last week.
She added that players will be watching out for the interest rate decision of the Bangko Sentral ng Pilipinas (BSP) during their seventh policy meeting later this week.
Eleven analysts tapped for a BusinessWorld poll were split, with six saying that policy makers will hold fire on interest rates this week, while five expect a 25-basis-point (bp) tightening move.
The central bank has raised rates in four consecutive meetings since May worth a total of 150 bps. The key policy rate now stands at 4.5%, the highest since 2009.
Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines, pointed out that external developments will also shape peso-dollar trading this week.
“The dollar is expected to appreciate this week, supported by likely upbeat US economic data and hawkish comments from US Federal Reserve officials. The greenback’s recovery might be capped by similar hawkish moves or hints from the BSP,” Mr. Dumalagan said.
Due this week are US data on consumer sentiment and inflation, as well as third-quarter economic growth data from Japan.
During their policy meeting last week, the Fed affirmed that the US economy remains on solid footing. Investors took it as a hawkish stance which bolstered the chances for another 25bp rate hike before the year ends.
The first trader expects the peso to trade within P52.80 to P53.50 this week, while Mr. Dumalagan gave a P52.70-P53.30 range. — Melissa Luz T. Lopez
THE United States is projecting a 10% increase in foodexports to the Philippines to $2.83 billion in 2018.
According to the United States Department of Agriculture (USDA) Global Agricultural Information Network (GAIN), consumer-oriented food and beverage products including wine are viewed as having the strongest prospects for future export growth driven by consumer confidence in the quality of US goods.
USDA said that the Philippines has been the largest market for US wines in Southeast Asia by volume since 2009. It forecast US wine exports to the Philippines of 4.3 million liters this year, up 10.3%.
The USDA’s Foreign Agricultural Service (FAS) in Manila held promotional events in Makati to increase awareness of the availability, variety and quality of US fine foods and wines.
USDA noted that the Philippines has a strong and growing consumer base, and gross domestic product (GDP) per capita has surpassed $3,000, while 20% of the population earns an average annual income of $12,510.
The USDA noted high levels of awareness and preference for US food and beverage, growing demand for healthy, organic, gourmet and convenience foods, as well as steady growth in the retail, food service and processing industries in the Philippines.
According to USDA, consumption growth in the coming years will be driven by a robust economy, and a young, fast-growing and highly urbanized population with increasingly sophisticated preferences, as well as growing access to modern supermarkets. — Reicelene Joy N. Ignacio
NATIONAL SCIENTIST Romulo G. Davide will be the guest speaker at a scientific conference, “Couldn’t AGRI More: Harvesting S&T Knowledge” on Nov. 23 at the University of the Philippines Open University (UPOU) in Los Baños, Laguna.
“We are honored to have Dr. Davide in this scientific conference where he will talk about the Farmer-Scientist Training Program or FSTP, an initiative that he carried out since 1994 to help farmers gain productive and sustainable yield,” said Alnard Pagulayan, class coordinator or DEVC 263 Class (Scientific and Technical Communication), which is organizing the event in partnership with San Miguel Corp.
The conference will have 20 slots open to the public.
Mr. Davide, a Ramon Magsaysay awardee in 2012, was named “Outstanding Agricultural Scientist” in 1994. He used his award money to launch the FSTP in his hometown of Colawin, Argao, Cebu.
Mr. Davide is the brother of former Chief Justice Hilario Davide Jr. — Mindanao News Bureau
By Arra B. Francia Reporter
SHARES MAY move upward in the week ahead as sentiment improves in anticipation of better economic growth figures and earnings results in the last quarter of 2018.
The 30-member Philippine Stock Exchange index (PSEi) dropped 0.95% or 66.89 points to close at 6,968.82 on Friday, pulling the main index 2.4% or 171 points lower on a weekly basis. The services and mining and oil counter declined the most, slipping 5.4% and 4.7%, respectively.
Turnover for the week reached P90.17 billion, with a foreign net buying position of P30.78 billion, as foreigners flocked the P39-billion follow-on offering of San Miguel Food and Beverage, Inc.
Eagle Equities, Inc. Research Head Christopher John Mangun said analysts are optimistic that economic data will improve in the coming months, despite the slower gross domestic product (GDP) figures seen in the third quarter at 6.1%. This is lower than the previous quarter’s revised 6.2%.
He noted that inflation seems to have plateaued, oil prices are dropping, while the peso is now getting stronger.
“Coinciding with the index being at a strong support level, there is a strong possibility that investors will start getting back into this market and begin picking up issues that have been heavily battered this year,” Mr. Mangun said in a weekly market report.
Online brokerage 2TradeAsia.com explained the same, saying in a market note that while the view might still be hazy, at least the peso has started to strengthen and crude futures have been on a downtrend.
“Markets should eventually let demand and supply work over time,” 2TradeAsia.com said.
Meanwhile, the online brokerage noted that measuring 29 stocks that have reported their nine-month earnings reports, the year-on-year weighted growth is now at 2.9% for the first nine months of the year, and 4.3% for the third quarter alone. This is better than the first half’s 1.43% growth and 2.03% in the second quarter.
The 29 stocks measure account for 57% of the PSEi basket, and 42% to the all-shares index.
“Looking solely on conglomerates, expansion initiatives remain intact despite immediate challenges of higher interest rates. We hold the view of improved 4Q results, which will be aided mainly by hastened investment initiatives,” 2TradeAsia.com said.
The companies set to release their third-quarter performances for the week are LT Group, Inc., San Miguel Corp. and its subsidiaries, Ayala Corp., Alliance Global Group, Inc., GT Capital Holdings, Inc., and Puregold Price Club, Inc., among others.
Together, these firms contribute 14% to the PSEi and 19% to the all-shares index.
Mr. Mangun placed the main index’s resistance at 7,200 to 7,500, while support is at 6,800 to 7,000.
