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Yields on T-bills, bonds to go up

YIELDS ON Treasury bills (T-bill) and Treasury bonds (T-bond) to be auctioned off this week are likely to move sideways or slightly higher, with bids to continue stabilizing as the market expects better economic data to be released this week.
The Bureau of the Treasury (BTr) is offering P15 billion worth of T-bills at its auction today, of which P4 billion will be in 91-day debt papers, P5 billion in six-month securities, and P6 billion in the one-year tenor.
The government is also offering P15-billion worth of reissued 10-year T-bonds with a remaining life of nine years and four months on Tuesday. The notes carry a 6.25% coupon rate.
Traders interviewed last week said debt yields will likely move sideways or slightly higher as the market expects an easing in inflation and a more robust third-quarter economic growth.
“Last week, we saw a good rally in bonds. Mainly because of improving CPI (consumer price index) outlook. So expect the positive momentum to somehow carry over this week,” a trader said in a text message.
“However, I see CPI data hours before bond auction will dictate the tone,” the trader added, while noting it would be “hard to gauge if there will be good demand for that given the recent US jobs report, which means the Fed rate hike is almost sure this coming December.”
Last week, the government made a full P15-billion award of the T-bills it offered, with yields remaining low on strong investor demand amid expectations of easing inflation. Total tenders stood at P26.985 billion, climbing from the P24.51 billion recorded at the previous offering.
Broken down, the government borrowed P4 billion as planned via the 91-day T-bills last week as bids amounted to P5.936 billion. The average rate rose just 2.7 basis points (bp) to 4.979% from the 4.952% logged in the previous auction.
The Treasury also made a full award of the 182-day papers, accepting P5 billion as planned out of offers totalling P7.534 billion. The average yield likewise rose 10 bps to 6.159% from 6.059%.
For the 364-day T-bills, the BTr borrowed the programmed P6 billion out of the P13.515 billion tendered by banks. Strong demand caused the average rate to slide 7.9 bps to 6.41% from the 6.489% tallied in the previous offering.
Another trader said by phone that the 10-year T-bond’s rate tomorrow “will likely move sideways, or if higher, it would be modest, as they await the inflation and GDP (gross domestic product) data, but the consensus is that the rise in prices may have plateaued and that the third quarter growth will likely accelerate from the previous quarter.”
A BusinessWorld poll of 15 economists bared a median inflation estimate of 6.7% for October, which if realized would be steady from September’s print — signalling that inflation may have already peaked.
The median also sits within the Bangko Sentral ng Pilipinas Department of Economic Research’s 6.2-7% forecast range.
A separate poll of the same economists showed a median forecast of 6.3% for the country’s third-quarter economic growth, faster than the 6% recorded in the second quarter but slower than the 7% in the July-September period in 2017.
Moreover, the first trader said yields on the shorter-dated T-bills will continue to see higher rates, although at a moderate pace.
“The T-bills is possibly unchanged, or about 10 basis points higher, which was tamed compared to previous weeks,” the trader said.
At the secondary market last week, the three-month, six-month and one-year T-bills were quoted at 5.098%, 5.915% and 6.564%, respectively, based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website. Meanwhile, the 10-year T-bonds fetched 8.014%.
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 T-bonds. — Elijah Joseph C. Tubayan

The meaning of emptiness … according to Muji Art Director Kenya Hara

WE SAY “emptiness” like it’s a bad word.
When we think of emptiness, we think of blank slates, deleted and vacant — but is that such a bad thing, when the now-empty space can provide room for the new?
This is the philosophy by which Muji Art Director Kenya Hara stands by, and by extension, so does the brand for which he works for. During his talk in the Ayala Museum late last month, a reverent hush hung in the museum’s air, waiting for his every word — it was fitting for a talk about emptiness to be characterized by its aural form, silence.
Muji was born in 1980, in the middle of a Japanese economic boom that improved the fortunes of many Japanese citizens. Perhaps it was a response to that culture of excess that Muji emerged, first called Mujirushi Ryohin, which meant “no-brand quality goods.” From a generic line for the Seiyu Supermarket group, Muji became its own independent brand, marketing minimalist objects that espouse this emptiness, a sort of consumable Zen philosophy made solid and tangible.
While Muji became an entity in the 1980s, it draws upon centuries of Japanese art and culture for its ethos. Mr. Hara used Japanese history to give context to the Japanese concept of emptiness.
For example, he used the architecture of Japanese shinto shrines to illustrate his point about emptiness. In the past, the Japanese believed in multiple gods and goddesses that resided in every object, from temples to grains of rice. In making shrines that were “empty,” it allowed the gods to reside in them. “Because it is empty, so there’s a possibility to be filled,” he said. He contrasts this with the architecture of other cultures, such as India’s rich Mughal tradition, and the similarly flamboyant Baroque and Rococo styles of Europe. To him, these were meant to show the power of kings, or of God (who anointed kings). Japan also employed such a level of flamboyance, and this flair, was used to honor “a higher level of being — the noblest being.” But society has changed in the years since then, and in societies with more equity, “decoration is needless.” He points out, however, that even before the age of kings ended, the Japanese have been using objects that were “very plain and minimal.” For this he points to the Onin War of the 15th century.
Kenya Hara 2
The Onin War was a civil war fought in the mid-1400s in Japan, between the feudal Shogun warlords. From the rubble of these wars came the Higashiyama culture, as perpetuated by shogun Ashikaga Yoshimasa. Higashiyama culture makes up many of the tenets of the Japanese culture that we know today, such as the Japanese tea ceremony, and wabi-sabi aesthetics (a type of refined roughness). These place importance in emptiness and plain spaces, with Mr. Hara noting, “By using this empty space, the visitor can make a communication with himself.”
“Every space can create a receptacle for imagination,” he said. “This space can accept any kind of image.” This is what forms the backbone of Muji products: by reducing decoration and emphasizing a plain aesthetic, it becomes an extension of the user, and then become anything the user wants it to be. Muji, after all, provides tons and tons of stuff meant to reduce life to its basics: from extremely plain unbleached notebooks, to storage units in clear material into which anything can be placed and stacked away, forgotten until needed so you can live your own life as you please, unhampered by stuff.
To him, the brand’s philosophy can be summarized by its differentiation from others. While other brands clamor to be seen, Muji becomes a sort of transparent palate-cleanse. “The brands always want a customer to say, ‘I want to have it. I must have it.’ The only thing that Muji would want the customer to say [is], ‘Muji will do.’” This was followed by a hum of laughter from the audience.
It is a bit of a mistake to simplify Muji as simple. Mr. Hara makes a distinction between what is “simple,” and what is “empty.” For example, he points to a knife of German design, with an elegant, ergonomic handle. That’s what is simple; it makes handling it much easier. But then, he points to a knife by Muji, with an octagonal handle that allows the user to use it from any possible angle created by the octagon’s eight points. “This is empty,” he said.
As Art Director of Muji since 2001, Mr. Hara also presided over Muji’s commercials, some of which he showed. There were modular sofas in one commercial, where one popped out slowly next to the other, creating a line and a natural link from the previous one. He showed a photo for a Muji campaign shot in one of Bolivia’s salt flats, where a vast expanse of emptiness allowed for a lone figure to stand in it.
So: emptiness. It’s not so much stripping something down, but making something so it provides space. Pointing again at the photo, empty but ripe with possibilities, he said, “There’s nothing, but there’s everything.” — Joseph L. Garcia

USDA, farm businesses head to S. Korea

WASHINGTON — The U.S. Department of Agriculture (USDA) said on Friday it will lead a trade delegation of farm organizations and businesses to South Korea, in an apparent effort to boost opportunities for U.S. farmers in a key U.S. export market.
The planned visit, scheduled for Nov. 5-8, comes after the United States and South Korea signed a revised free trade agreement on Sept. 24 and at a time when American farmers have been struggling due to the absence of Chinese buyers, their largest export market, due to a trade war between Washington and Beijing.
USDA’s Foreign Agriculture Service (FAS) Administrator Ken Isley will be heading the mission with nearly 50 U.S. agriculture businesses which will hold one-to-one meetings with potential customers.
“Korea is consistently among the largest and most reliable export markets for U.S. agriculture and the U.S.-Korea Free Trade Agreement, known as KORUS, has opened up even greater opportunities,” Isley said in a statement.
South Korea was the seventh biggest export market for the United States in 2017, according to figures from the office of U.S. Trade Representative (USTR), with U.S. exports to the country totaling $48.3 billion last year.
U.S. farmers have been hit hard by the Trump administration’s ongoing trade dispute with China, which has shut off billions of dollars’ worth of agricultural trade between the giant economies.
U.S. Secretary of Agriculture Sonny Perdue last month said the United States had probably made a mistake in becoming too trade dependent on China and that the administration was pursuing trade deals elsewhere to diversify its export markets. — Reuters

Peso likely to rise ahead of data

By Melissa Luz T. Lopez
Senior Reporter
THE PESO could maintain its strength this week ahead of positive inflation and economic growth data expected onshore, which could offset the possible appreciation of the dollar.
The local unit ended the shortened trading week at P53.535 versus the greenback on Oct. 31, stronger than its P53.59-per-dollar finish the previous day. This was the peso’s best showing in nearly two months since it ended at P53.46 on Sept. 3.
Sought for comment, two traders said the peso could move stronger and hit a fresh high in recent weeks in anticipation of better economic data in the Philippines.
“The dollar is expected to depreciate this week amid likely better Philippine economic data on inflation and GDP (gross domestic product) growth,” said Guian Angelo S. Dumalagan, market economist at the Land Bank of the Philippines.
“While the dollar is expected to weaken overall, its decline might be tempered by strong US labor reports and expectations of more hawkish hints from the US Federal Reserve during its November 2018 policy meeting.”
The US Labor department reported that non-farm payrolls (NFP) went up by 250,000 jobs in October, marking a sharp rebound accompanied by higher wages and a steady unemployment rate. This added confidence that their economy is recovering and is ready for another rate hike from the Fed by December.
Back home, market watchers are anticipating a slower October inflation rate as the Bangko Sentral ng Pilipinas (BSP) has noted that inflation may have already peaked the previous month. The central bank gave a 6.2-7% forecast range for the month, slightly lower than the 6.3-7.1% estimate given for September.
However, a BusinessWorld poll late last week yielded a median inflation forecast of 6.7% to match September’s print. In the same poll, analysts pegged third-quarter GDP growth at 6.3%, better than the six percent expansion from April-June.
Another currency trader said that the US jobs report will “set the tone for the dollar” come Monday.
“Let’s see what the NFP figures will be and it continues to give a positive dollar move, or (if) we are going to see a disappointment, then we’ll see a selldown in the dollar,” the trader said.
This trader expects the currency to trade between P53.50 to P53.75 this week, but noted that the peso may strengthen further.
Meanwhile, Mr. Dumalagan gave a wider range of P53.20 to P53.80.
“The factors that could reverse or temper the greenback’s projected depreciation include weaker-than-expected Philippine GDP growth and higher-than-expected Philippine inflation. Geopolitical concerns might keep volatility elevated,” Mr. Dumalagan added.
Eyes are on the trade talks between the United States and China which started last week, following a tariff war on imports slapped on incoming products.

PPA to decide on CLC’s unsolicited proposal for Sasa port by yearend

THE PHILIPPINE Ports Authority (PPA) is aiming to make a decision on Chelsea Logistics Holdings Corp.’s (CLC) P11.2-billion unsolicited proposal for the development of Sasa port in Davao City before the year ends.
PPA General Manager Jay Daniel R. Santiago told reporters on Oct. 31 that it has already terminated the planned bidding to rehabilitate the Sasa port, allowing it to consider CLC’s unsolicited proposal submitted in August.
“They submitted, but as part of the process, there has to be a closure of the bidding process previously undertaken by the previous administration, yung sa P19 billion. We only got the approval for the closure of that bidding process about two weeks ago. But concurrently we’re already evaluating the proposal of Chelsea, and we will make a decision whether or not to entertain the unsolicited proposal no later than December this year,” he said.
Mr. Santiago said once approved by the PPA Board, CLC’s proposal would then be passed to the National Economic and Development Authority (NEDA) for further evaluation. If it gets the go-ahead, the project will then undergo a Swiss challenge where other companies are invited to submit counterproposals that CLC may match.
CLC president and chief executive officer Chryss Alfonsus V. Damuy previously told reporters the proposal involves rehabilitation of the port facilities and increasing the Sasa port’s capacity over a 25-year concession period.
To recall, the previous administration initially had a P19-billion rehabilitation plan for the Sasa port, but was suspended after the city government and business groups opposed it over the high cost.
The Duterte administration then removed the Sasa Port Modernization Project from the public-private partnership program in December 2016, then reinstated it earlier this year, according to the NEDA regional office in Davao.
Aside from CLC’s proposal for the Sasa port, Mr. Santiago said the PPA also received last month a proposal from terminal operator Kudos Trucking Corp. for the Port of General Santos.
“We’ve received two unsolicited proposals: one is in Davao-Sasa, and another unsolicited proposal for General Santos. The one for General Santos is from Kudos. Kudos Trucking. That is a private terminal operator whose main facility is in Davao also,” he said.
Like CLC’s, Kudos’ proposal is for the rehabilitation and improvement of the port in General Santos, including the installation of new equipment such as cranes.
Mr. Santos said the PPA is only entertaining unsolicited proposals for ports under Tiers 1 and 2, which are identified as ports that handle large volumes.
“So far those are the ports that we’ve identified that if ever we will be entertaining unsolicited proposals for,” he said. — Denise A. Valdez

Air Jordan 33 promises ultimate lockdown and flight

THR 33rd iteration of the iconic Air Jordan shoe line was recently released in the country, promising “ultimate lockdown and flight” thanks to the FastFit technology it was built around.
Touted as taking shoe comfort, performance and style to a whole new level, the Air Jordan XXXIII underscores the Jordan Brand’s commitment to continued evolution of basketball footwear.
Like all Jordans since the XXX, this year’s flagship Jordan sneaker features subtle design cues from the past.
The window to the tightening system mimics the original Air window, and the use of “Nike Air” on the heel tab is a reflection of the III, IV, V, and VI.
The huge tongue is also used for the Jumpman logo in the same way show designer Tinker Hatfield debuted the logo on the III.
Jordan brand’s distinct tech continues on the shoe’s bottom, with the XXXIII’s Flight Speed technology (now made with the same carbon fiber plate as the Nike Zoom Vaporfly 4%) and the Nike Zoom Air unit.
Under the arch a circular cutout reveals the mechanism of FastFit, and how it tightens and loosens.
How FastFit works is as simple as “pull and go.”
Loops on the tongue and heel allow for easier entry with the tightening system activating its cables with a single tug of the forefoot strap, creating a full 360-lockdown.
Ejecting the lockdown is by pulling the side loops to release the cables.
“Flight has always been part of our DNA. Our team considered the utility-led design of space flight suits and used that as inspiration in crafting the sneaker,” said Jordan Brand Vice-President of Design David Creech of the inspiration for the Air Jordan XXXIII.
The Air Jordan 33 “Future of Flight” colorway was made available in the country on Nov. 2 at Nike Park stores, Nike Forum, Titan, The Athlete’s Foot, and Sports Central stores. It retails for P9,895. — Michael Angelo S. Murillo

Russia to resume some Brazil beef and pork imports

MOSCOW/SÃO PAULO — Russia’s agriculture safety watchdog said on Wednesday it would allow imports of beef and pork from nine Brazilian plants to resume from Thursday, ending an 11-month ban triggered by food safety concerns.
Russia’s Rosselkhoznadzor had placed temporary restrictions on imports of pork and beef products from Brazil in December 2017 after it said it found ractopamine in some shipments, a feed additive that is permitted in Brazil but banned in Russia.
The decision could boost Brazil’s pork exports by 20,000 tonnes this year to 640,000 tonnes in total, Brazilian meat industry group ABPA said.
The plants now cleared for shipments to Russia — once the destination for 40 percent of Brazil’s pork exports — include one operated by Minerva Foods and another by leading privately-owned food processor Aurora Alimentos.
A list on the food safety agency’s website shows 32 Brazilian plants that continue to be restricted from exporting meat products to Russia.
Moscow has not discussed the possibility of expanding the decision to other plants yet, the watchdog said.
“The measure is positive even though it only involves a small number of plants,” Ricardo Fantin, ABPA’s executive director, said in an interview on Wednesday. Other companies would have to wait for more information from Russian authorities to see if they would be cleared in the future, he added.
Only plants that process meat from animals that have not been given any ractopamine were allowed to resume sales to Russia, Fantin said.
Ractopamine allows livestock to grow at a faster rate while consuming less feed. It is banned in countries including Russia and the European Union, but allowed in others, including the United States.
“The presence of ractopamine in Brazilian products indicates a glitch in the entire veterinary control system,” Rosselkhoznadzor told Reuters in an email earlier this week.
The Russian agency said on Wednesday it decided to lift the restrictions after Brazil provided guarantees over its products.
Shares in Minerva, one of Brazil’s largest meat-packers, rose 8 percent to 5.48 reais.
BRF SA, Brazil’s largest pork processor by capacity, ended 3.45 percent higher at 21.90 reais although its plants still show up on the Russian watchdog’s website as “temporarily restricted.”
Minerva, Aurora Alimentos and BRF did not immediately reply to requests for comment. — Reuters

Prudential Guarantee tops non-life insurers in net premiums in 2017

PRUDENTIAL Guarantee & Assurance, Inc. (PGA) was named the top non-life insurer in 2017 based on premium income after writing P4.81-billion worth of net premiums, moving up from second place in 2016, the Insurance Commission (IC) said.
The IC released over the weekend the list of top non-life insurers in 2017 on the basis of net premiums, assets, net worth and net income, based on audited annual statements submitted by the firms.
PGA was followed by Charter Ping An, which jumped three places from the fifth rank in 2016, with P4.08-billion in net premiums. Malayan Insurance Company, Inc. slid from the top spot in the previous year and ranked third with P4.07 billion in net premiums in 2017.
BPI/MS Insurance Corp. went down a spot to take the fourth rank with P2.96 billion net premiums written, and FPG Insurance Co., Inc. stayed at the fifth rank in 2017 with a P2.51-billion premium income.
An insurer’s net premium income is premiums written on direct business plus assumed premiums and less cessions and retrocessions.
Meanwhile, Malayan Insurance took the top spot in terms of assets with P38.81 billion in 2017, climbing from second place in 2016. Pioneer Insurance & Surety Corp. which ranked first in terms of assets the previous year, placed second with P25.43 billion in total assets.
BPI/MS Insurance ranked third with P12.59 billion worth of assets, swapping places from 2016 with PGA, which had total assets worth P12.57 billion this year.
Charter Ping An stayed at fifth place with P10.53 billion in assets.
“The combined assets of top five non-life insurance companies account for 48.72% of the total assets of the non-life insurance industry last year,” the IC said.
In terms of net worth, Pioneer and Malayan Insurance kept the first and second rank, respectively, with P13.95 billion and P6.90 billion in 2017.
Philippines’ First Insurance Co., Inc. followed with a P2.30-billion net worth, up from fourth place in 2016.
BPI/MS had a net worth of P2.08 billion in 2017 and came at fourth place, one rank higher from 2016. AIG Philippines Insurance Co. stayed at fifth place with a P1.79-billion net worth.
Ranked based on 2017 net income, BPI/MS Insurance climbed to get the top rank with P427.50 million after placing second in 2016. PGA ranked second with P259.78 million in 2017, up from the fourth rank in the previous year. The Insurance Company of North America jumped to the third place in 2017 from 40th in 2016 as it booked a P212.13-million net income.
Card Pioneer Microinsurance, Inc., a microinsurance company, took the fourth spot with a P210.34-million net income, up three notches from seventh place in 2016. Chater Ping An also jumped to the fifth spot with P185.90 million, from 60th place in 2016. — Elijah Joseph C. Tubayan

PXP Energy Corporation (PXP)

By Christine J. S. Castañeda
Senior Researcher
The possible lifting of the moratorium on Service Contract (SC) 72 and the investment of businessman Dennis A. Uy’s Dennison Holdings Corp. in PXP Energy Corp. (PXP) made the latter’s stock one of the hottest last week.
PXP Energy was the ninth most traded stock in terms of value turnover last week. A total of P413.891 million worth of 23.271 million shares exchanged hands on the trading floor from Oct. 29 to Oct. 31, data from the Philippine Stock Exchange showed.
Shares closed at P17.84 apiece on Wednesday, up P0.22 or 1.25% from the previous day. It was 1.44% lower than its closing price of P18.10 on Oct. 26. It is, however, up 114.42% year to date.
“PXP has been one of the most actively traded stocks in the market because the investors are anticipating market-moving updates on the possibility of lifting the moratorium on SC 72.” said Cristopher Adrian T. San Pedro, a certified securities representative at Unicapital Securities, Inc.
“This will enable PXP Energy to restart talks with China National Offshore Oil Corporation for oil and gas exploration in Recto Bank located in the West Philippine Sea, [to which] I believe there is a strong possibility that this could happen on the visit of Chinese President Xi Jinping [this] month,” he added.
Mr. San Pedro said the market-moving news on PXP Energy was Dennison Holdings’ subscription to the company’s 340 million common shares at P11.85 per share. This gives Dennison Holdings 14.78% total ownership interest in PXP Energy.
Piper Chaucer E. Tan, research associate at Philstocks, Inc., noted the sudden movement of PXP was due to Dennison Holdings’ entry.
“Investors perceived this as a definitive move that the joint oil exploration [is] most likely to happen and take note that the speculation of the joint exploration is [what’s] keeping PXP actively traded in the local bourse,” he added.
On the other hand, PXP Energy said in its disclosure dated Oct. 24 that it would take guidance from the government regarding the future activity in SC 72 and SC 75 — the latter referring to the oil and gas exploration permit that covers the offshore area of 610,000 hectares in the Northwest Palawan basin — and that it “remains hopeful” that the force majeure would be lifted by the Department of Energy (DoE) for the company to resume exploration works in the two service contracts.
To recall, the DoE issued a moratorium on all exploration and drilling works in SC 72 and SC 75 in December 2014 and 2015, respectively, due to the maritime dispute between the Philippines and China over the West Philippine Sea.
Meanwhile, the crude oil and natural gas explorer’s latest consolidated earnings report showed that PXP Energy posted a net loss after taxes amounting to P49.093 million in the first nine months of the year, 43.30% higher than the P34.258-million loss in 2017’s comparable period. For the third quarter alone, the company’s net loss stood at P16.251 million from P17.068 million in 2017.
Mr. San Pedro pegged the stock’s short term support and resistance at P16.30 and P18.96, respectively.
Philstock’s Mr. Tan gave primary and secondary support prices of P16 and P15.30 as well as primary and secondary resistance prices of P18 and P19.42.

Style (11/05/18)

fine jewelry FilipinaZ Fair
The FilipinaZ Fair showcases fine jewelry among others.

Zonta Club’s FilipinaZ Fair pays tribute to Ramon Valera

NATIONAL ARTIST for Fashion Design Ramon Valera’s legacy lives on in his notable works that celebrate the Filipina. His creations and significant contributions to the modernization of the Filipino national dress will take stage at this year’s FilipinaZ Fair called “Valera Unearthed.” Presented by Zonta Club of Makati and Environs together with Security Bank, this fashion vignette will feature some of Valera’s finest creations, as well as pieces belonging to some of the members of the club and their friends that have never been publicly showcased. Designed to be an immersive experience, the presentation will recreate Valera’s workspace — revealing stories, beautiful creations and the creative processes of the late designer. At a time when everything was done painstakingly by hand, Valera’s elegant and timeless creations were fueled by passion. “Valera Unearthed” will also serve as a platform to unveil new designs as the late designer’s family unveils a few pieces to pay homage to his legacy of craftsmanship and artistry. “Valera Unearthed” will be on display at this year’s FilipinaZ from Nov. 9 to 11 at 8, Rockwell Center, Makati. The three-day FilipinaZ Fair features art, fashion, and jewelry pieces that celebrate Filipino culture and heritage. The exhibit will feature the works of over 60 visual artists.

Wynn Wynn Ong’
Wynn Wynn Ong’s new collection, “Sa Dagat At Bundok,” is a highlight of the The KaLIKHAsan Ball.

Designer Wynn Wynn Ong’s new collection

DESIGNER Wynn Wynn Ong’s new collection, “Sa Dagat At Bundok,” will presented at The KaLIKHAsan Ball on Nov. 10 at the Metropolitan Museum of Manila. This is a project of Metro Society magazine and ABS-CBN Lingkod Kapamilya Foundation, Inc. in celebration of the foundation’s 20th anniversary. The collection was inspired by creatures of the sea and mountains and brought to life by the designer’s distinct sense of aesthetics. Each item is designed with specific gems in mind and crafted entirely by hand. Among the pieces which will be on view at the ball is Newly-Discovered Fruit-Eating Bayawaks of the Cordilleras, Staghorns, Philippine Hornbill, and Malakas at Maganda & Manananggal. There will also be a special performance by the Steps Dance Studio — Steps Dance Project and RAMA.

SSI presents #PassionForward campaign

LUXURY retailer Stores Specialists, Inc. (SSI) Group has been marking its 30th anniversary with the “The Curated Life” campaign which was launched earlier this year. As part of this it has come up with the #PassionForward campaign featuring personalities who “just like SSI are forging new paths to the curated life,” according to a press release. The #PassionForward campaign launch will include a photo exhibit by photographers Mark Nicdao, Kai Huang, and Cyrus Panganiban, together with photographer hobbyists Kyla Olives, and film director Paul Soriano. Featured are Mariana Zobel de Ayala, Armie Jarin-Bennett, Ernest Cu, Kevin Tan, Steven Tan, and Annette Gozon Valdes from the business sphere; Tourism Secretary Berna Romulo Puyat; blogger Nicole Andersson, Heart Evangelista-Escudero, Tricia Gosingtian-Gabunada, Tessa Prieto Valdes representing the fashion arena, while Aryanna Epperson and Rissa Mananquil Trillo represent the area of beauty. The arts are represented by Sofia Zobel Elizalde, Paulina Luz Sotto, Trickie Lopa, Dindin Araneta, and Lisa Periquet, while design is represented by Kenneth Cobonpue, Lesley Mobo, Royal Pineda and Budji Layug. Home and entertainment feature Mia Borromeo, Stephanie Zubiri Crespi, and Happy Ongpauco-Tiu, while the lifestyle press is represented by Irene Martel Francisco, Millet Mananquil, Thelma Sioson San Juan. The areas of social enterprise and advocacy are represented by Krie Lopez, Paloma Urquijo Zobel, Angelo and Mariglo Laririt, Joel Palma, and Senator Sonny and Tootsy Angara. Food is represented by JP Anglo and Bruce Ricketts.

Commonwealth opens its biggest PHL store

COMMONWEALTH, a specialty boutique composed of lifestyle apparel and footwear, which first opened in Washington DC, in 2014, opened its third — and biggest store — in the Philippines at the Powerplant Mall in Makati, on Oct. 22. Commonwealth is the only Tier 0 NikeLab and Adidas Consortium account in the country. Since it was first introduced by Welcome Worldwide into the Philippine market in 2015, the retail brand and footwear specialist has become a haven for the city’s growing market of sneakerheads who willingly get in line to “cop” the store’s latest “drop.” On the shelves, a wide selection of sought after Converse, ASICS, Vans, Nike, Adidas, and New Balance shoes. At the flagship Powerplant outlet, different brands will be in full display: Stone Island, Human Made, APC, Nanamica, Stussy, Carhartt WIP, Polythene Optics, Cav Empt, Neighborhood, Maharishi, Aries, Wacko Maria, Saturdays NYC, DIME, and Brain Dead. “Our third and biggest flagship store is only the beginning of bigger things. With our third Commonwealth flagship opening, along with focusing on Commonwealth’s apparel line, we are excited to start unveiling some of our collaboration projects we have planned for the near future,” said Commonwealth founder Omar Quiambao in a press release.

US farmers turn back to grains on weak soy demand

CHICAGO — Since the mid-2000s, North Dakota farmer Paul Thomas has planted more of his land with soybeans as China’s demand for the oil seed grew. The shift culminated this year when Thomas planted 1,600 of his 5,000 acres with soybeans, the most ever.
But Thomas and many farmers like him plan to return to the old US farm belt staples in 2019: corn and wheat. The change will reverse a trend that saw US farmers plant more acreage this year with soybeans than corn for the first time in 35 years.
The expected shift to other grains comes as farmers struggle to sell the soybean crop because of President Donald Trump’s trade war with China. China typically buys 60 percent of US soybean exports but has bought almost none for months due to the trade war, pushing prices to a decade low.
Thomas plans to plant more wheat next year, hoping he can earn more by decreasing his reliance on the crop dependent on Chinese demand.
Soybean prices are “kicking our butts,” said Thomas.
Without China, Thomas said local cash prices near his farm are $7.10 per bushel of soybeans, below the $8.50 necessary to cover costs.
The trade war has hit US farmers at a vulnerable time. They had planted more acreage than ever with soybeans this year and are harvesting the largest ever US crop.
But Beijing slapped an import tax on US soybeans in July in retaliation for Trump’s taxes on Chinese imports into the United States.
The US Department of Agriculture, in the agency’s first estimate for next year’s planting to include the impact of the tariffs, on Friday estimated 2019 corn plantings to rise about 3 million acres to 92.0 million acres. Wheat acres would rise to 51.0 million acres, up from 47.8 million this year, while soybean acres would fall to 82.5 million acres.
Acreage of soybeans, planted before retaliatory tariffs were imposed, rose to 89.145 million this year, up about 15 million acres from a decade ago.
Corn acres are up by less than 5 million acres since 2008 to 89.1 million acres while wheat acres of 47.8 million this year were near the lowest in a century.
Aron Carlson, president of the Illinois Corn Growers Association, devoted nearly half of his 3,600 acres to soybeans this year but plans to cut back.
He said he may increase corn planting by up to 20 percent at his farm in northern Illinois. The state is the biggest US soy producer.
Soybeans yield fewer bushels per acre than corn but also require less fertilizer, making them generally cheaper to grow. A switch to corn could raise costs for farmers but benefit some companies including fertilizer sellers like The Andersons Inc. The firm’s Chief Executive Pat Bowe told Reuters he expected a switch to corn would be good for fertilizer use.
Bayer AG, too, expects to benefit from a switch to corn.
“Corn has a longer growing period, more issues with weeds and fungi … This is a benefit for our overall business,” Liam Condon, president of the company’s Crop Science division, said at an event in St. Louis this week.
DEMAND DYNAMICS
While soybean prices tumbled to a decade-low on Sept. 18, corn is not frequently exported to China and slumped to merely a 22-month low. Wheat prices are up 19 percent this year as reserves in many exporting countries have fallen to their lowest since 2007-08.
Corn demand has benefited from long-term growth in the livestock industry and grain-based ethanol. Drought in Brazil and Argentina also made corn importers more reliant on the United States.
Stocks soar on jobs reports, hopes of US-China trade deal
A record 3.2 billion bushels of US corn were consumed from June to September, the USDA said on Sept. 28.
Illinois farmer Eric Honselman said his family farm planted about equal amounts of corn and soybeans on their 5,600 acres. But corn acres next year will likely increase by up to 5 percent.
“Next year, we will be longer corn than soybeans,” Honselman said. “Every time the market tells me to grow corn, I will do it.” — Reuters

Stocks may climb ahead of inflation, GDP data

By Arra B. Francia
Reporter
SHARES may continue their upswing in the week ahead as investors look forward to the release of economic figures alongside more corporate earnings from the third quarter.
The bellwether Philippine Stock Exchange index (PSEi) jumped 1.77% or 124.23 points to close at 7,140.29 last Wednesday, before the local market paused for the holiday break.
On a weekly basis, the PSEi was up 1.08% or 75.96 points, taking cues from the positive sentiment on Wall Street. The financials and mining and oil counters led advancers, climbing 2.84% and 1.7%, respectively.
“If the index can sustain this run and break above resistance at 7,200 [this] week then this may signal that the main index has bottomed out and is officially in a reversal to the upside,” Eagle Equities, Inc. Research Head Christopher John Mangun said in a weekly market note.
Leads for the week include the release of corporate earnings, including Globe Telecom, Inc.; Ayala Land, Inc.; Manila Water Company; SM Investments Corp.; AboitizPower Corp.; Aboitiz Equity Ventures, Inc.; International Container Terminal Services, Inc.; 8990 Holdings, Inc.; PLDT, Inc.; and Eagle Cement Corp. These companies account for 39% of the PSEi basket and 26% to the all-shares index, according to online brokerage 2TradeAsia.com.
So far, Mr. Mangun said corporate earnings have exceeded expectations. “This may be just what the market needs right now to draw investors back in.”
Investors will also be looking ahead to the October inflation data, which the Philippine Statistics Authority will release on Nov. 6, Tuesday. Meanwhile, the third-quarter gross domestic product (GDP) growth print will be announced on Nov. 8, Thursday.
“Consensus points to 5.8%-6.3% for 3Q, with the bulk of the downside explained by July to September weather interruptions on agri output,” 2TradeAsia.com said in a weekly market note, noting that the damages brought by typhoons Gardo (international name: Maria), Karding (Yagi), Ompong (Mangkhut), and Paeng (Trami) are valued at around P29 billion.
“Also note that the National Capital Region’s share to GDP is at 36%, Calabarzon at 17%, and Central Luzon at almost 10%. To meet the low end of the government’s revised 6.5% to 6.8% target this year, 3Q GDP may need to rise 6.4% and 6.8% in 4Q,” the online brokerage said.
Meanwhile, the Bangko Sentral ng Pilipinas said inflation likely stood at 6.2-7% in October, down from its 6.3-7.1% forecast range for September.
Eagle Equities’ Mr. Mangun also pointed to the slowdown of net foreign outflows likely bringing optimism back to the market, after it recorded net buying for the first time since Aug. 30 last Wednesday.
The analyst pegged the PSEi’s support level at 6,800 to 7,000, while resistance could go from 7,200 to 7,500.

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