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2G ethanol overcoming technical glitches, seen competitive with oil at $70 per barrel

SAO PAULO — Second-generation ethanol production is overcoming the technical difficulties that had slowed its development and is now seen as commercially competitive with oil prices near $70 per barrel, industry representatives said on Thursday.
As countries worldwide prepare to deliver on their respective commitments to the Paris climate deal, growing global regulations that favor advanced biofuels and programs that put a price tag on carbon-based fuels are creating a more positive environment, biofuels executives said at the “Forum Brasil Bioeconomia 2018” seminar in Sao Paulo.
After years of investment and technical glitches, 2G biofuels, or cellulosic biofuels, are seen as the future of green fuels since they can be made from biomass, overcoming criticism about the use of food crops to produce fuel and sharply reducing carbon emissions from vehicles.
“We had that moment of excitement some years ago, then came a downsize with players leaving the arena due to big difficulties to operate plants in a stable way,” said Victor Uchoa, Latin America biorefining head for biotech company Novozymes.
“But that is in the past now, we are again in a ‘up’ moment. The Raízen plant is an example of that,” he said.
Brazil’s Raízen, a joint venture between Royal Dutch Shell Plc and Cosan SA Indústria e Comércio, is producing some 40 million liters of cellulosic ethanol per year at its plant in Piracicaba, Sao Paulo state.
“We solved the operational problems, production is currently stable and we are hitting the numbers we planned,” Raphaella Gomes, head of Raízen’s innovation arm told Reuters on the sidelines of the seminar.
Raízen has previously said that it sells all of its 2G ethanol at a price premium over regular, sugar cane-based ethanol, due to its environmental credentials.
Cellulosic ethanol in Brazil is mostly made from the cane waste from the production of sugar and ethanol. Novozymes supplied Raízen with enzymes used in the fermentation process, which was another technological challenge since the biomass needed a new type of fermentation to produce ethanol.
Mauricio Adade, head of Latin America at DSM, a firm supplying products for cellulose fermentation, said that in other countries — including the United States, where 2G ethanol is made from corn waste — production is very close to being financially feasible.
“With oil around $70 we can compete,” he said.
Adade expects strong demand from Asian countries such as China and India, which are seeking to drastically cut carbon emissions from the transportation sector. — Reuters

Peso to drop on strong US data

THE PESO will likely weaken this week as the dollar is seen to strengthen on the back of the upbeat US economic data as well as a likely hawkish statement out of the policy meeting of the Federal Reserve.
The local unit strengthened on Friday as it closed the session at P53.285 against the greenback, 15 centavos stronger than its P53.435 finish on Thursday on the back of hawkish remarks from the Bangko Sentral ng Pilipinas (BSP).
Week on week, the peso also strengthened from its P53.51-per-dollar finish on July 20.
Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines, said the dollar may bounce back this week amid a “string of possibly firm US economic data and a hawkish Fed” during its meeting.
However, the dollar’s ascent might be capped by expectations of future monetary policy tightening from the BSP as well as the central banks of Europe and Japan.
On Friday, a foreign exchange trader said the peso will likely lose its strength versus the dollar on Monday due to likely upbeat US gross domestic product (GDP) growth which was released later that day Manila time.
The American economy grew 4.1% in the second quarter, its fastest pace in nearly four years, as consumers boosted spending and farmers rushed shipments of soybeans to China ahead of the imposition of trade tariffs earlier this month, Reuters reported.
US President Donald J. Trump hailed the economic data, saying that the US “accomplished an economic turnaround of historic proportions.”
However, Mr. Dumalagan said the dollar may “move sideways with an upward bias” on Monday as the upbeat US economic growth is accompanied by the upward revision of July consumer sentiment and the weaker-than-expected personal consumption expenditures price index.
“Overall, latest US economic reports keep the US Federal Reserve on track to two more US rate hikes before the year ends,” he said.
Mid-week, Mr. Dumalagan said the dollar may shed some of its gains amid some speculations of a policy tweak from Bank of Japan as well as positive GDP growth data in Europe which may support views of an interest rate adjustment from the European Central Bank in the future.
The market analyst also noted that the greenback might resume its upward trend due to likely hawkish tone of the Fed’s policy gathering.
“While the US central bank is not expected to hike its rates again in August 2018, it may provide more hints of another rate adjustment in September and December this year,” Mr. Dumalagan added.
For this week, he is expecting the peso to move between P53 and P53.60, while the trader sees the pair to trade between a P53-P53.40 range. — Karl Angelo N. Vidal

Ideal Vision Center marks its 32nd year with a sale


BACK IN THE 1950s Ideal Optical started selling eyeglass frames and watches in Quiapo, Manila. And back in the day, getting a pair of glasses made was not as simple as it is today.
“Before the 1980s, you’d buy your frame and lenses separately. You [would] go to another place for refraction test,” explained Joy Go, whose grandfather launched Ideal Optical. Ms. Go is the AVP for marketing and merchandising of Ideal Optical’s successor, Ideal Vision Center.
To avoid the hassle of hopping from one place to another to buy eyeglass frames, lenses, and schedule an optometric consultation, Dr. Mary Chan decided to provide all of these in one store called Ideal Vision Center, which opened at SM North EDSA in 1986. Today, it provides a wide range of eyewear, lenses, and optometric consultation to its customers nationwide, in those in its branches in the USA and in Guam.
COMPUTER AND SIGHT
Things have changed a lot from the days when people just read books to today when people are engrossed in their digital gadgets.
“[Before] you’d stay with the computer for eight hours for school or for work tapos ‘pag uwi mo, tapos na (when you’d get home, it would be over). You wouldn’t use any other gadgets — you’d read books and do other stuff,” Ms. Go told BusinessWorld at the anniversary sale’s launch at the store’s branch in Glorietta 2. The phrased “computer vision syndrome” in the 1990s to describe the effect of computers on the eye.
According to the American Optometric Association website, Computer Vision Syndrome — also referred to as Digital Eye Strain — “describes a group of eye and vision-related problems that result from prolonged computer, tablet, e-reader and cell phone use. Many individuals experience eye discomfort and vision problems when viewing digital screens for extended periods. The level of discomfort appears to increase with the amount of digital screen use.”
Today, the Ideal team has come up with the term “digital vision syndrome.”
“With all the digital gadgets, all the exposure of the harmful blue rays is evident [more] now compared to before,” Ms. Go said, citing a study in the US which found that myopia (nearsightedness) in children and teens has increased by 30%.
The Ideal Vision Center addresses eye protection and vision enhancement with its blue filter lenses. “It cuts the blue rays. It only allows the good light to go in,” Ms. Go said.
In line with Ideal Vision Center’s 32nd anniversary, it is offering new products and a sale.
Frames of selected luxury, sporting, and casual brands will be priced at P32, P320, and P3,200; while those getting new lenses put will get a 32% discount until July 30.
Meanwhile, Ideal Vision Center launched a new line of eyewear for gamers — specially designed for protection to reduce eye fatigue — at last weekend’s Asia Pop Comicon (APCC).
For information on the sale and branches, visit www.idealvisioncenter.com.ph. Like and follow Ideal Vision Center on Facebook and Instagram for updates. — Michelle Anne P. Soliman

PetroEnergy expects slight profit dip

PETROENERGY Resources Corp. (PERC) is expecting a slightly lower net income for the first half of 2018 as its wind farm in Nabas, Aklan failed to match its performance during the same period last year, company officials said.
Francisco G. Delfin, Jr., PetroEnergy vice-president, said the company is expecting “a little dip” in its first-semester profit, although recovery is expected in the second half.
“We expect to recover in the second half even if the preliminary figures on the first half are slightly lower than the first half 2017,” he told reporters.
He declined to give PetroEnergy’s expected profit for the first six months, but in the same period last year, the company reported a 180% increase in its consolidated net income to $6.55 million. The company reports its financial data in dollars for ease in accounting for its overseas oil revenues.
He said the growth drivers for the rest of the year are the company’s renewable energy projects, especially its 36-megawatt (MW) Nabas wind project in Aklan.
“As we enter the second half of the year, presumably we will increase generation from our wind farm —the Nabas plant. In fact, that increase has already started,” he said.
Last year’s strong performance was driven by higher income contribution from its renewable energy projects, including the 20-MW Maibarara geothermal power project in Batangas, and the 50-MW solar power project in Tarlac.
Mr. Delfin said the full operations of the 12-MW second phase of Maibarara geothermal plant is among the growth drivers this year.
“And if oil prices continue to remain between the $70-$80 price per barrel, we should be able to sustain the profitability and the revenue of our Gabon operations as well,” he said.
PetroEnergy previously said that its petroleum asset in Gabon, West Africa produces about 16,000 barrels of oil per day from four producing fields.
Carlota R. Viray, PetroEnergy assistant vice-president for finance, said the Nabas wind farm has started to pickup only in June and July, but its output during the early months of the year was slight lower than the previous year’s when the plant experienced strong winds.
PetroEnergy has a total renewable energy power generation portfolio to 118 MW. It expects the installed power capacity to reach 200 MW by 2021, the year when it should have invested a total of P6.755 billion for a number of new and expansion projects.
Ms. Viray said that by 2021 solar power would be the company’s biggest contributor in terms of installed capacity at 80 MW.
She placed wind power’s contribution at 50 MW, with geothermal accounting for 32 MW of the total. She said the remaining capacity would come from several small hydropower projects that the company was studying.
The company declined to disclose details of the proposed hydropower projects because of a non-disclosure agreement it had signed ahead of the final investment decision. — VVS

Monetary Board orders closure of Bangko Buena

THE MONETARY BOARD has shuttered a rural bank based in Iloilo, marking the fifth lender to fold this year.
In a circular letter issued on Thursday, the Bangko Sentral ng Pilipinas (BSP) said it has ordered the Bangko Buena Consolidated, Inc. to stop its operations.
As regulator, the BSP can order the closure of problem banks with unhealthy balance sheets and insufficient assets to remain in business. The Philippine Deposit Insurance Corp. (PDIC) has taken over the bank as receiver effective last Friday.
Bangko Buena is run by its president, Cherlyn P. Dela Cruz-Payongayong, based on the BSP’s directory of lenders.
According to PDIC records, the bank runs seven branches in the Visayas. Bangko Buena is headquartered in Iloilo City but also had presence in other towns as well as in nearby Guimaras, Antique, Capiz, and Bacolod.
PDIC’s takeover allows the state-run deposit insurer to acquire the lender’s assets in order to pay outstanding liabilities to depositors. Bank deposits are insured up to P500,000 per depositor, according to the law. Funds used to settle valid deposit insurance claims are drawn from the Deposit Insurance Fund managed by the PDIC.
The state insurer also collects and resolves loans from borrowers and disposes of the bank’s remaining assets through its regular public biddings and negotiated sale, which will be used to settle claims beyond the P500,000 limit.
Bangko Buena follows the fate of four other small lenders shut down by the central bank this year. These are the Women’s Rural Bank, Inc., the Rural Bank of Initao (Misamis Oriental), Inc., the Empire Rural Bank and the Rural Bank of Loreto, Inc. in Dinagat Islands.
The central bank ordered the closure of six rural banks and one thrift bank last year. In 2016, the regulator closed 22 lenders.
The central bank has been encouraging mergers among small banks in order to fortify their financial footing by dangling a host of incentives for those who pursue such plans. — Melissa Luz T. Lopez

India milk powder exports to surge on subsidies, dampen global prices

MUMBAI — A massive milk glut in India could hit international prices for dry milk powder after government subsidies aimed at supporting local farmers look set to spur a ninefold surge in exports, industry officials told Reuters.
India’s skimmed milk powder (SMP) exports are expected to rise to 100,000 tons in the 2018/19 fiscal year as rare government incentives spur overseas sales and make shipments from the world’s biggest milk producer competitive on the global market.
The rise in shipments from India could weigh on global SMP prices that have more than halved in four years due to surplus supplies, according to analysts and industry officials.
The exports will also help India bring down inventories that have dragged local raw milk prices to three year lows and below cost of the production, sparking widespread farmer protests.
In the wake of the protests, the western states of Gujarat and Maharashtra, India’s leading milk producers, offered a 50,000 rupees ($727.86) a ton subsidy for exports of SMP, while the central government approved a further subsidy of 10% of the export price.
“India was not exporting a big quantity. The government assistance will revive exports in coming months,” said R. S. Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation Ltd., the country’s biggest milk processor.
The potential 100,000 tons of shipments expected in the 2018/19 year starting April 1 compare to 11,500 tons a year earlier, Sodhi and other industry officials said.
INTERNATIONAL IMPACT
India rarely impacts the dried milk export market. The US Department of Agriculture recently forecast the country’s 2018 non-fat dry milk powder shipments to be only 15,000 tons, compared to 410,000 tons from New Zealand and 720,000 tons from the United States.
Substantially larger-than-expected Indian exports could therefore weigh on global skimmed milk prices that only recently recovered from all time lows plumbed in January of around $1,550 per ton. Benchmark prices traded on the CME Group are currently around $1,730 per ton.
“The potential addition of Indian SMP to global stocks will keep the global SMP prices depressed,” said Shiva Mudgil, senior dairy analyst at Rabobank.
Historically, Indian SMP is offered at a discount to SMP from New Zealand, which is perceived as of higher quality.
In the global market, Indian SMP was fetching around $1,700 per ton compared to local price of $1,900 per ton and production cost of more than $2,900, industry officials said.
Indian dairies were not previously exporting SMP due to the wide gap between local and overseas prices, but with the government subsidy, that difference has narrowed, said Devendra Shah, chairman of Parag Milk Foods, a diary firm based in western state of Maharashtra.
“Even after the subsidy, dairies will be losing money on the exports,” Shah said.
FARMER LIFELINE
India’s dairy industry has been a lifeline for millions of small farmers across India, providing critical revenue especially during poor crop years. Indian farmers earn more money from the sale of milk than from wheat and rice sales combined.
The country’s milk production has grown at compound annual rate of 4.9% over the last decade and is expected to reach a record 180 million tons this fiscal year, Rabobank estimates.
But a fall in raw milk prices this year has hammered farmers’ earnings, which have already been squeezed by lower crop prices, and added to pressure on authorities to act.
Raw milk prices have fallen 20-25% in the last 18 months in India, even as cattle feed and fodder prices have been rising, said Rabobank analyst Mudgil.
The price fall also poses a challenge to Prime Minister Narendra Modi’s government which is trying to woo the critical rural vote ahead of key elections next year.
As raw milk prices dropped, farmers in Maharashtra tried to cut supplies to the country’s financial capital Mumbai last week.
Some activists from Swabhimani Shetakari Sanghatana, a farmer’s organization led by member of parliament Raju Shetty, blocked tankers carrying milk to the city, while thousands of farmers poured milk on roads to register their protest.
“There wasn’t any other way to draw the government’s attention towards falling milk prices,” said Shetty.
India’s SMP stockpile has already risen to more than 300,000 tons and increased exports may not be enough to reduce inventory significantly, said Arun Narke, director at co-operative dairy Gokul in Maharashtra.
“Additional local demand can be created by including milk in government’s midday meals scheme for school children. It will help in bringing down malnutrition,” Parag Milk’s Shah said. — Reuters

New Era and UAAP tap school spirit with themed caps


CELEBRATING Filipinos’ love and passion for collegiate sports, New Era Philippines and the University Athletic Association of the Philippines (UAAP) collaborated on a line of caps bearing the designs of UAAP member institutions in time for the start of Season 81 of the league in September.
In a celebration marking its 3rd anniversary in the Philippines on July 28 at SM Megamall’s Mega Fashion Hall, New Era officially unveiled its partnership with the UAAP, showcasing the first batch of UAAP-themed caps to be made available to the public.
The New Era-UAAP collection comes in signature 9Forty silhouettes, with each cap featuring university sports logos and primary color, and highlighting, New Era and UAAP said, “the union of rich heritage and tradition aimed to innovate a whole new age of lifestyle.”
“New Era is rooted in sports. It has been associated with the MLB (Major League Baseball), NBA (National Basketball Association), and NFL (National Football League). And in the Philippines, the UAAP is one of the biggest sports leagues, if not the biggest, so it makes sense to partner with them and be its official cap,” Melvin Lloyd Lim, president and CEO of Authentic Caps Distributions Inc., the company handling New Era in the country, told BusinessWorld at the launch.
He went on to say that the collaboration with the UAAP is also New Era’s way of making the brand relatable and fresh for the local market.
“In a way it’s like customizing New Era for the Filipino market. The caps are for the alumni of the teams and local collegiate fans in general who want to be identified with a particular school or team,” said Mr. Lim, who said that the partnership will run for three years, beginning in Season 81.
“This is just the start. A lot is still in store for New Era as far as collaboration goes. This is the first batch for UAAP and we are planning to come up with lifestyle products as well. We are also looking at partnering with other groups and artists to make our offering fresh for the local market,” said Mr. Lim, whose group also has partnered with local rapper Gloc-9, National Artist Benedicto “Bencab” Cabrera, and streetwear brands Progress and Sole Slam.
For the UAAP, the tie-up with New Era should only enhance its already big fan following.
“This is big for the UAAP. Just to be mentioned, through New Era, alongside Major League Baseball, NBA, and NFL means that the UAAP has truly come a long way. I think this is the first time that New Era has partnered with a local league. So it’s really a big recognition on our part,” said UAAP commissioner Rebo Saguisag in a separate interview,
“I think it will do well. Fans nowadays, especially the millennials, really follow their favorite athletes and if they see them wearing certain apparel they would want to buy it. So it’s an opportunity for the UAAP to reach out to more fans and grow. We are excited for future collaborations with the New Era,” he added.
The New Era-UAAP collection was offered for pre-selling for a limited time last Saturday but will be in general release come the UAAP season. The caps will sell for P1,895. — Michael Angelo S. Murillo

Cavite-Laguna expressway fund-raising extended

THE METRO PACIFIC group is pushing back its target closing of fund-raising for the Cavite-Laguna Expressway (CALAX) to August from its original end-July target.
MPCALA Holdings, Inc. President Luigi L. Bautista said in a text message on Sunday that the change in closing date is because the “financial close is being timed with the acquisition of the balance of right of way in Laguna and Cavite.”
He told reporters on Thursday, after an awarding ceremony with the Department of Public Works and Highways (DPWH) for another project, that he was anticipating to close the P25.3-billion CALAX financing by next month.
Mr. Bautista said the budget would be used for both the Cavite and Laguna sides of the expressway, but the company was already using equity for part of the Laguna side, which has already started construction.
He added, the funding will be sourced from around six local banks. “We went to each and every one of them. But we talked to them as a group,” Mr. Bautista said.
MPCALA Holdings, a part of the Metro Pacific Tollways Corp. (MPTC), is the private concessionaire for the 45.29-kilometer CALAX project. Once finished, the toll road will connect the South Luzon Expressway (SLEx)-Mamplasan interchange to the Cavite Expressway (CAVITEx).
Mr. Bautista said earlier this month that segments 7 and 8 in the Laguna side of CALAX is 45% complete. It is targeted to be fully completed by the first quarter of 2019.
The whole Laguna segment begins at Laguna Boulevard and ends in Mamplasan, Biñan. The road is supposed to reduce travel time from the two ends by half.
For the Cavite side, the DPWH said earlier it was yet to deliver the right of way by mid-next year. But initial construction work is eyed to begin by the third quarter of this year.
The CALAX project is expected to be completed by 2020. The four-lane expressway is aimed to cut travel time from SLEx to CAVITEx by 45 minutes.
MPTC is the tollways unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three key Philippine units of Hong Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Yields on government debt climb on bets of BSP hike

EXPECTATIONS of faster economic growth in the US pushed yields on local government securities (GS) north last week, coupled with hawkish comments by the Bangko Sentral ng Pilipinas (BSP) governor that fuelled bets of another rate hike in August.
GS yields went up 12.96 basis points (bp) on average last week, data from the Philippine Dealing & Exchange Corp. as of July 27 showed.
“The increase in GS yields [last] week can be traced to three factors: indications from the BSP of another rate hike in August, expectations of upbeat US second-quarter GDP (gross domestic product) growth, and positive developments regarding the trade talks between the US and the European Union (EU),” said Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines (LANDBANK).
Ruben Carlo O. Asuncion, chief economist at the UnionBank of the Philippines, shared the same view on expectations of another BSP rate hike next month.
“There seem to be some consistency with yields going sideways but upward bias in the short-term. Market players are waiting and anticipating the ‘strong follow-through monetary adjustment’ communicated by the BSP Governor recently,” he said.
He added that the “clarity” on the state of further cuts in the reserve requirement ratio (RRR) “may have also played a role that signals a more contractionary or hawkish stance by the BSP consistent with how inflationary pressures should be addressed.”
In a speech last July 20, BSP Governor Nestor A. Espenilla, Jr. said the Monetary Board is considering a “strong follow-through” policy action for its upcoming Aug. 9 policy rate meeting to quell inflation expectations. This will follow the back-to-back rate increases in the BSP’s May and June policy reviews that jacked up key rates by a total of 50 bps.
Inflation averaged 4.3% in the first semester and peaked at 5.2% in June, leading the country’s economic managers to adjust their inflation outlook to 4-4.5% in 2018 from 2-4%.
However, some economists have flagged confusing signals by the BSP when it lowered the RRR to 18% from 20% through two equal one-point reductions in March and June, saying that this ran counter to the back-to-back 25 bps interest rate hikes.
The BSP chief told bank economists and other market watchers last Wednesday that the two cuts in the RRR introduced earlier this year should be enough for now, adding that the goal of achieving single digit RRR could be resumed next year when inflation “returns to target” based on their forecasts.
Meanwhile, on the external front, a survey conducted by Bloomberg among economists showed an expected average of 4.2% economic growth in the US on the back of narrowing trade deficit and robust consumer spending.
Furthermore, threats of an all-out trade war between the US and the EU showed signs of cooling off after US President Donald J. Trump and European Commission chief Jean-Claude Juncker agreed “to work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.”
To recall, retaliatory tariffs have been imposed on US goods by China, the EU, Canada, and Mexico.
In the secondary market, the short-end of the curve saw yields on the 91- and 364-day Treasury bills (T-bill) climb by 2.21 bps (3.2773%) and 12.49 bps (4.8237%), respectively. On the other hand, the 182-day T-bill dropped 10.77 bps to fetch 4.2506%.
All tenors in the belly of the curve saw their yields go up. The five-year Treasury bonds (T-bond) led the way with a 44.03 bps increase to yield 6.1339% followed by the four-year T-bonds which rose by 25.71 bps to 5.9357%. The two-, three- and seven-year debt papers likewise increased by 16.55 bps (5.0427%), 9.30 bps (5.1127%) and 0.06 bp (6.3%).
In the long-end, the 10-year paper climbed 25.50 bps to fetch 6.65%. The 20-year T-bond also rose albeit slightly by 4.47 bps to yield 7.4518%.
Looking forward, UnionBank’s Mr. Asuncion expects yield movements to be sideways “with upward bias” due to the “expected hawkish decision” of the upcoming central bank meeting.
LANDBANK’s Mr. Dumalagan likewise shared the same outlook as the US Federal Reserve may yet again drop hawkish hints during its policy meeting on Aug. 2. Other factors that may push GS yields higher, he said, include possible tweaks to the Bank of Japan’s stimulus program, expectations of faster domestic inflation in July and bets of a BSP rate hike next month. — Vann Marlo M. Villegas

Local shares seen to drop ahead of ghost month

By Arra B. Francia, Reporter
LOCAL EQUITIES may drop in the coming days following their four-day rally last week, with investors cautious on the looming Chinese ghost month.
The 30-member Philippine Stock Exchange index (PSEi) climbed 0.46% or 35.53 points to end at 7,701.38 on Friday.
On a weekly basis, the main index rose 4.08% or 301.77 points, supported by a 5.3% increase in holding firms, 3.8% in financials, and 3.6% in property.
Online brokerage 2TradeAsia.com attributed last week’s upward performance to the clarity of some issues brought by President Rodrigo R. Duterte’s state of the nation address last Monday.
“Our ‘wish list’ last week on President Duterte’s third State of the Nation address was highlighted, and the market gave fervor with the resumption of foreign buying. This covers the Duterte administration’s thrust to sequels on the tax reform plan, plus support for provincial expansion under the [infrastructure] agenda,” 2TradeAsia.com said in a weekly market note.
Eagle Equities, Inc. Research Head Christopher John Mangun said he will not be surprised to see a pullback for the last two trading sessions in July.
“This was the pullback that was delayed from last week. The index cannot continue to maintain this momentum without relieving some pressure,” Mr. Mangun said.
Analysts are also being wary of the Chinese ghost month, when the index historically goes into a slump as investors typically hold off on trading.
The Chinese ghost month this year will last from Aug. 11 to Sept. 9.
“With the approaching ghost month, some might be prompted to go neutral over the near term and reposition in a more active manner after this period,” 2TradeAsia.com said.
For Eagle Equities’ Mr. Mangun, however, the ghost month could spell a different trend this year.
“This year is a very different situation as the index has just bottomed out in July. The index has just broken above the strong resistance at 7,500 and we shall see if this will get investors back into the market regardless of the ghost month,” he explained.
Meanwhile, investors will also be looking at the release of earnings reports for the second quarter. Scheduled to release their financials this week are BDO Unibank, Inc., Manila Electric Co., D.M. Wenceslao & Associates, Inc., Aboitiz Power Corp., Aboitiz Equity Ventures, Inc., Metro Pacific Investments Corp., and Eagle Cement Corp.
“Trends that show improved outlook (especially for core recurring earnings) will be lauded, as players see these listed leaders as proxy in their category,” 2TradeAsia.com said.
The online brokerage firm sees immediate support at 7,600 this week, while resistance can play from 7,900 to 7,950.

Iowa, wary of aid, trade wars, still turns out for Trump

DUBUQUE, IOWA — Iowa farmers criticized President Donald Trump’s $12-billion farm aid package and worried about trade wars impacting their business, but many still turned out to support him on Thursday during a visit to the top corn-producing state.
Eugene Wiederholt, who rents out land used to produce soybeans in the town of Zwingle, said the farm assistance package announced Tuesday to help farmers weather lost markets and low prices from the trade disputes reminded him of welfare.
“I don’t want nothing to do with it,” he said at a public viewing area next to Dubuque’s airport, awaiting Trump. “It’s just not wholesome.”
The concern from Wiederholt, a supporter who said Trump “is one of us,” shows a dilemma facing many Republicans who have traditionally shunned aid and prefer free trade.
Many Republican lawmakers have spoken out against Trump’s trade policy and the aid.
Republican Senator Chuck Grassley of Iowa said Trump should work to resolve the trade dispute with top soybean buyer China.
“I hope President Trump’s trip to Iowa gives him a sense of urgency,” he said in a statement. “Farmers are depending on the President for a speedy resolution.”
China and other top U. trade partners zeroed in on American farmers with retaliatory tariffs after the Trump administration imposed duties on Chinese goods as well as steel and aluminum from the European Union, Canada and Mexico.
Rural and agricultural states supported Trump by wide margins in the 2016 election, and China has targeted them with tariffs on soybeans and other products. The aid package comes ahead of US mid-term elections in November.
Trump may be taking on fights with too many trading partners at once, said Bob Weber, a corn farmer in nearby Bellevue, Iowa. But Weber still turned out to watch Trump, for whom he voted, land on Air Force One.
“What he’s doing is right but he might be doing too much at the same time,” Weber said.
Trump visited a community college in Peosta, Iowa, in Dubuque County, which flipped from supporting Barack Obama in 2012 to Trump in 2016.
Eleven people interviewed by Reuters who earn incomes from farming around Dubuque said they voted for Trump and continue to back him.
Still, BJ Reeg, a farmer in nearby Bellevue, worries that trade tensions have hurt prices for the soybeans he grows and meat he produces from cattle.
“This trade war thing, it has to be done,” Reeg said as he leaned on his silver pickup truck. “In the long run, it’s gonna be good, if a guy can hang on.”
Reeg said he was glad the Trump administration offered aid to farmers but worried it would not be enough.
“The whole farm industry is really in the gutter,” he said. “You take $12 billion and divide it by all the crops out here and it does not amount to much,” he said.
The largest emergency farm assistance announcement since 1998 will offer cash payments to farmers from a depression-era program, buy foods for food banks and other programs and aim to promote trade starting in September.
Reeg has contracts to sell about 60% of the soybeans he expects to harvest this autumn to global grain merchant Archer Daniels Midland Co. and a local cooperative.
He plans to put the remainder of his harvest into storage because of low prices.
Trump spoke down the road from where Pat Merkes raises 80 dairy cows.
It is a tough time for dairy producers because milk prices have been low for more than a year, farmers said. They hope the government helps to open new markets for US products.
“He’s not afraid to stand up to anybody,” Merkes said of Trump from atop a rusted red tractor. He also voted for the Republican. — Reuters

Morocco comes to Rustan’s


THIS AUGUST, Rustan’s brings the heart of Morocco to the Philippines at the 5th Level of Rustan’s Makati.
The month-long festival, titled “Le Coeur du Maroc”(The Heart of Morocco) — held in partnership with HSBC, Fairmont Makati, and the Moroccan National Tourism Office — features a wide range of authentic Moroccan home items, fashion pieces, and beauty products, and even Moroccan cuisine.
Available are intricately decorated tajines and ceramic plates, handmade rugs, baskets and bags, a variety of Moroccan tea glasses hand-painted by artisans from Casablanca, as well as lanterns, lamps, and silverware hand-hammered by master metalworkers.
As Morocco is the only place to get authentic argan oil — produced from the kernels of the argan tree that is endemic to Morocco, and often referred to as “liquid gold” — Rustan’s also presents a variety of serums and soaps infused with argan oil, as well as 100% pure argan oil.
There is also a selection of accessories and fashion pieces featuring intricate hand embroidery and beading. The babouche — flat, slipper-like shoes with an exaggerated point at the toes — will also be found in Rustan’s.
There will be an array of scarves, kaftans, and djellaba — both traditional and modern — and fashion jewelry accessories like tassel earrings and beaded necklaces.
For something special, Moroccan designer Fatim-Zahra Ettalbi will be visiting the country in August to showcase her collection in a by-invite only event.
To give visitors a true feel of Morocco as they shop, Moroccan musicians will be performing at the retail floor from Aug. 1 to 8, while artisans will offer henna painting from Aug. 1 to 8 (free for a minimum purchase of P3,000 of Moroccan merchandise). They can also join the Arabic calligraphy demo workshop on Aug. 1-10, for a minimum purchase of P5,000 worth of Moroccan merchandise.
For the first week of the Festival, one of Morocco’s best known chefs, Moha Fedal, will be working at Rustan’s Casablanca Café. The celebrity chef will host special cooking demos (the final schedule of activities will be announced soon).

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