Facebook Instagram Linkedin X Youtube
Home Blog Page 12281

ABS-CBN ends network-sharing deal with Globe, cites ‘financially unsustainable’ mobile business

ABS-CBN Corp. announced it will no longer renew its network-sharing deal with Globe Telecom, Inc. to deliver content through its ABS-CBNmobile brand after its five-year agreement expired.
In a disclosure to the stock exchange on Monday, July 16, ABS-CBN said its mobile business is “financially unsustainable,” hence the decision.
“ABS-CBN Convergence and Globe reached an agreement not to renew their mobile network sharing agreement and to look at more profitable opportunities in the content business,” it said.
The two companies have agreed, however, to keep its connections for the TVplus boxes, Kapamilya Box Office and iWant TV offers of ABS-CBN. — Denise A. Valdez

EU urges big powers to avert trade ‘conflict and chaos’

Beijing, China — The European Union called Monday on the United States, China and Russia to work together to cool worsening global trade tensions, warning that they could spiral into violent “conflict and chaos.”
The comments from EU Council President Donald Tusk comes as Washington and Beijing stand on the brink of an all-out trade war many fear could hammer the global economy, while the US has also picked fights with allies in Europe and Canada.
“It is the common duty of Europe and China, but also America and Russia, not to destroy (the global trade order) but to improve it, not to start trade wars which turned into hot conflicts so often in our history,” Tusk said in Beijing.
“There is still time to prevent conflict and chaos.”
Tusk spoke after meeting Chinese Premier Li Keqiang as part of an annual EU-China summit that opened against the backdrop of the deepening global trade discord.
The EU — the world’s biggest single market with 28 countries and 500 million people — is trying to buttress alliances in the face of the protectionism unleashed by US President Donald Trump’s “America First” administration.
The meeting between Chinese and European officials in Beijing, which also included European Commission head Jean-Claude Juncker, comes as Trump prepared to hold talks in Helsinki with Russian leader Vladimir Putin.
Trump sprinkled further spice on the rising rancour in a interview aired Sunday in which he labelled the EU, Russia and China as “foes” of the United States.
Tough talk
Tusk said in Beijing that the world needs trade reform, not confrontation.
“This is why I am calling on our Chinese hosts, but also on presidents Trump and Putin, to jointly start this process from a thorough reform of the WTO (World Trade Organization),” Tusk said.
“Today we are facing a dilemma, whether to play a tough game, such as tariff wars and conflict in places like Ukraine and Syria, or to look for common solutions based on fair rules.”
Tusk did not immediately specify what sorts of reform he was referring to.
French President Emmanuel Macron had called in late May for talks on overhauling the WTO.
At the time, European companies were bracing for punishing US tariffs on steel and aluminium imports that ultimately went into effect on June 1.
Besides the steel and aluminium tariffs on the EU, Russia and major US trading partners, Trump earlier this month implemented tariffs on $34 billion worth of Chinese imports, drawing a tit-for-tat response from Beijing.
Washington last week threatened yet more measures on another $200 billion in Chinese goods, prompting Beijing to vow further retaliation.
The back-and-forth has heightened fears that trading powers will hunker down into a destructive all-out trade war that could hit global growth.
China said on Monday that its economic growth rate had slowed slightly to 6.7 percent in the second quarter of this year, from 6.8 percent the previous quarter, and a government spokesman warned a trade conflict threatens all the affected economies.
“The China-US trade friction unilaterally provoked by the United States will have an impact on the Chinese and US economies,” Mao Shengyong, a spokesman for the national statistics bureau.
“Now that the world economy is deeply integrated, industrial Chains have become globalized, and many related countries also will feel an impact.” — AFP

Noteworthy sedans

It is hard not to see sedans plying on the road. They are well patronized whether for single driving, for family use, or even for income-generating ventures such as ride-hailing services.

The five-passenger vehicle type has become a preferred choice for its road performance, great driving experience, generous boot capacity, and good fuel economy. Moreover, sedans are said to remain among the vehicle types with the broadest categories, typically with a wide range of sizes and prices that can fit a car buyer’s needs and preferences.

Here are some of the well-loved sedans in the country:

Honda Civic RS Turbo

The all-new Honda Civic RS Turbo boasts of its VTEC turbocharged engine mated to a responsive Continuously Variable Transmission (CVT) with paddle shifters. This engine, which has a maximum power of 173ps/5, 500rpm and maximum torque 220Nm/1,700–5,500rpm, enables higher cruising efficiency and robust performance while being environment friendly at the same time.

Matching this noteworthy engine is a notable exterior, which has a coupe-like silhouette, low and wide stance, and eye-catching alloy wheels. As described by Honda, the Civic RS Turbo’s aerodynamic design was inspired by the active and sophisticated character of the Honda Sport DNA. Moreover, Honda Civic RS Turbo is sure to keep you entertained on the road with its reliable and entertaining multimedia features.

Hyundai Accent

Under the hood of Hyundai Accent is a 1.6 CRDi diesel engine with VGT, which produces a maximum power of 136 ps/4,000 rpm and 30.6 kg-m/torque at 1,750-2,500 rpm for its DCT variant. This is complemented by continuously variable transmission that enables optimal rpm when driving and provides superb fuel efficiency, acceleration performance, as well as smooth driving experience.

These features are then matched with a number of colors to choose from, a stylish exterior, and refined lamps. Apart from its well-performing engine and stylish exterior, the other features of Hyundai Accent include SRS airbags, anti-lock braking system, electronic stability program, electronic brakeforce distribution, and keyless entry among others.

Nissan Sylphy

Nissan boasts of this compact sedan as top of its class with luxury features and technology that is hard to beat. Under its hood is a 1.6L 116ps, dual overhead cam, fuel injected four-cylinder engine that delivers a performance that are smooth-revving, powerful, as well as responsive while being fuel efficient and environment friendly at the same time.

This engine is matched with an exterior that is characterized by clean sculpted lines, graceful arcs, and seductive curves. This design are not only sophisticated in style but delivers other satisfactory benefits, as well including excellent visibility and low wind noise among others. Complementing these features are generous head and shoulder room, perforated leather seating surfaces, wide door armrests, and soft touch materials that make the riding experience a luxurious one.

Mitsubishi Mirage G4

Made for everyday driving, the Mitsubishi Mirage G4 is equipped with Euro-4 compliant 1.2L DOC 12-Valve Mitsubishi Innovative Valve-timing Electronic Control System (MIVEC) system engine that delivers 78ps/6,000rpm of maximum power and 100Nm/4,000rpm of maximum torque. Matching the engine is a lightweight and aerodynamic body that delivers better performance and fuel efficiency.

Equally important to note is Mitsubishi Mirage G4’s spacious cabin and trunk, as well as its multimedia entertainment system that makes driving a better experience. This vehicle’s interior is then complemented with an exterior characterized by dark alloy chrome wheels, dark chrome diamond cut front grille, and has a good range of colors to choose from.

Suzuki Ciaz

Suzuki claims that their Ciaz blends sportiness and elegance as seen in its lean yet expansive body that evokes an impression of sophistication matched with a spacious and ergonomically designed cabin. Along with this sophisticated exterior, comfortable cabin, as well as ample luggage space, are a number of amenities that enhance one’s driving experience.

Under its hood is the refined K14B VVT engine, which according to Suzuki, incorporates new cylinder heads and piston crowns. And because it features friction reduction in each engine component, it delivers great dynamic performance with excellent fuel efficiency. This engine delivers a maximum output of 92 hp/6,000 rpm and a maximum torque of 130 Nm/4,000rpm. Moreover, Suzuki Ciaz is also built with safety in mind, thus, its body is made with the Total Effective Control Technology concept, which offers enhanced protection to the occupants.

Toyota Vios

This best-selling sedan is a staple on the road that it is almost impossible not to encounter one. Toyota Vios sports a fuel efficient Dual VVT-i, 4-Cylinder In-Line DOHC 16V EFI that delivers a maximum output of 98hp/6,000rpm and maximum torque of 123Nm/4,400rpm. This performance is then complemented by a stylish exterior characterized by carefully crafted curves that also defines the car’s aerodynamic efficiency and stability. Toyota Vios promises to deliver a good time while riding with its comfortable seats and featured MirrorLink System that can complement with smartphones’ latest applications. Without compromising on safety, this car is equipped with airbags for the driver and passengers.

Choosing the right sedan

With the increasing number of vehicle categories in the market today, sedan remains as the practical choice for millions of car buyers. The traditional four-door car sets the bar higher in terms of overall quality, performance, fuel economy and reliability — the factors every consumer should consider in purchasing a car.

Sedan, or saloon as often called in other countries, is a vehicle type with three major distinct sections for the engine, the passenger cabin, and the luggage compartment. Its primary purpose is to transport people and their baggage on ordinary roads.

According to international auto Web site Edmunds.com, sedan is one of the most versatile forms, ranging from econobox basic to first-class executive comfort to back-road speed special.

“Today, the crossover SUV has replaced the sedan as America’s vehicle of choice. An SUV’s high seating position offers easy step-in entry and a commanding view of the road, and voracious cargo capacity makes them a staple for active families. But for many, a sedan offers a level of driver engagement, handling and performance that still eludes even the best crossovers, with enough space and utility to make it an ideal daily commuter or family hauler,” the site says.

With a broad range of sedan cars in the market, it is difficult to find one that suits the needs and the situation of a certain car buyer. To winnow the choices, here are some important features to consider, as enumerated by Consumer Reports on its Web site.

When comparing sedans in terms of engine and fuel economy, Consumer Reports says that the number of cylinders doesn’t always equate to horsepower or fuel economy.

“In fact, some V6s are thriftier than some fours. Many modern engines have adopted direct-injection technology and turbocharging to maintain power while saving fuel, although real-world fuel economy can vary based on driving conditions and style. Some of these turbocharged cars and many upscale sedans require premium fuel,” it says.

In terms of accessibility, choose sedan with wide doors and enough headroom so that front and rear passengers can enter and exit easily without bumping their heads, and sit in the rear without brushing the ceiling.

“Some sedans are styled with low, sloping rear rooflines that concede practical considerations for appearance. Such coupelike designs can degrade rear-seat accessibility, headroom, and the driver’s aftward view,” Consumer Reports says.

For car buyers who expect to carry long or bulky cargo, look for sedans that has a fold-down rear seat with a tall, wide opening to the trunk behind. Even a small pass-through port can be handy for long, slender items such as skis, Consumer Reports says.

Although sedans, especially the mid-sized and large ones, are known for their good balance of maneuverability, protective structure, and available safety equipment, it is still important to check the safety ratings of a certain car model as not all models afford the same protection.

At present, all new sedans have standard safety features including front and side-curtain air bags; lap-and-shoulder belts in all outboard seating positions; child-seat top-tether; and lower LATCH (lower anchors and tethers for children) attachments in the rear seats. In addition to these, car buyers should be mindful of some advanced safety technologies, such as forward-collision warning and automatic emergency braking.

The two valued systems are fast-becoming standard equipment on many new vehicles today. Forward-collision warning technology provides a visual, audible, or tactile alert to warn the driver of an impending collision with a car or object directly in its path, while the automatic emergency braking technology senses a potential collision, and starts braking when the driver doesn’t react on time.

Other modern safety features to look into, according to Consumer Reports, are telematics systems that alert emergency personnel if an air bag deploys; lane-departure warning systems that sound an alert to the driver if it change lanes without signaling; lane-keeping assist to center vehicle in the lane if the driver starts to drift; and blind-spot warning systems that indicate vehicles driving in the blind spots to the side and rear.

State spending to sustain GDP growth

By Elijah Joseph C. Tubayan
Reporter
THE Organization for Economic Cooperation and Development (OECD) sees Philippine economic growth sustaining its 2017 growth pace until next year on the back of government spending that will take up the slack from weaker private consumption and export growth.
The OECD expects Philippine gross domestic product (GDP) to grow 6.7% this year and in 2019, falling short of the government’s 7-8% targets for these two years but still faster than a 5.3% forecast for Southeast Asia in the same periods and the 6.6% and 6.5% averages for 2018 and 2019, respectively, for “emerging Asia,” a group that covers the 10 members of the Association of Southeast Asian Nations (ASEAN) plus China (6.7% this year and 6.4% next year) and India (7.4% this year and 7.5% in 2019).
All three less developed ASEAN members — Cambodia, Laos and Myanmar — will lead regional growth, but among the seven bigger ASEAN economies, only Vietnam will grow faster than the Philippines at 6.9% this year and 6.6% in 2019.
“The Philippines is estimated to replicate its 2017 GDP growth of 6.7% in 2018 and in 2019,” the OECD said in its preliminary report for the Economic Outlook for Southeast Asia, China and India 2018 – Update that follows the 2018 report presented at the ASEAN-East Asia Summit in Manila in November last year.
“Government spending and public investment will likely anchor economic growth, with private consumption facing some friction and exports substantially weakening.”
The Philippines’ latest estimates are faster than the 6.4% average forecast for 2018-2022 which the Paris-based organization gave in November last year.
Propelling state spending potentially faster, the bi-annual report added, would be front-loaded disbursements ahead of next year’s mid-term elections.
“Upcoming regional events are likely to increase countries’ motivation to implement and complete infrastructure projects. Several elections are expected in the near term. Public investment in democracies tends to peak 21-25 months before elections, including through the construction of high-visibility projects ready to be built,” OECD said.
“Planned upcoming general elections… in the Philippines in May 2019… are likely to provide additional incentives to announce and deliver on infrastructure projects.”
The OECD’s latest forecast for the Philippines matches the World Bank’s 6.7% estimate for 2018 and 2019, but is slower than the Asian Development Bank’s and United Nations Economic and Social Commission for Asia and the Pacific’s 6.8% and 6.9% projections for the same two years.
It also compares with Moody’s Investors Service’s 6.8% estimate for 2018, Fitch Rating’s 6.8% for 2018 and 2019 and S&P Global Ratings’ 6.7% and 6.8% for the same two years, respectively.
CONFIDENCE
Noting that “[t]he acceleration in GDP growth was propelled mainly by government spending, which rose by 13.6%, from 0.1% a year earlier” while “growth in private spending, fixed investment and gross exports weakened during the period,” OECD said: “A similar pattern seems likely in the coming quarters.”
“Government consumption is expected to remain buoyant; revenue intake is on track to surpass targets, as seen in the first four months of 2018,” the group added, noting that investment has “room to grow faster than before,” but will depend on agencies’ efficiency in implementing projects.
The OECD noted that the record $10-billion foreign direct investment net inflows to the Philippines in 2017 were “indicative of well-grounded investor confidence presumably due to optimistic economic prospects and the strong infrastructure campaign.”
Moreover, the OECD noted that lower personal income tax rates granted by Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion law, could further fuel household consumption — which contributes over 60% to overall economic output — although weaker remittances from abroad and quicker inflation could soften it.
“Private spending can benefit from lower income-tax payments covering most workers. Some degree of monetary accommodation (exemplified by reserve requirement ratio adjustments) will help. Yet, the moderation in overseas remittances could drag down household spending growth,” the report read.
It noted that the January-April remittance growth of 3.5% was slower than the 4.2% in 2017’s first four months
“Rising domestic prices and lower consumer optimism in Q1-Q2 2018 and relatively weaker tourism prospects — due to the government’s decision to close a top destination for rehabilitation — can also further stifle private spending,” OECD said.
“The higher global fuel prices and the continued weakness of the currency will likely provide ammunition to inflation in the coming months,” it added.
“The central bank may have raised its policy rate, but the impact of this move may be limited since the push comes largely from the supply side. The reduction in the reserve requirement ratio will also keep the liquidity in the system ample.”
Inflation clocked at a five-year-high 5.2% in June, fueling last semester’s pace to 4.3% that is beyond central bank’s 2-4% target for 2018 though short of a downgraded 4.5% full-year forecast average.
“Separately, offshore goods shipments nominal growth slowed down in the first four months of 2018,” the report added, noting: “This slowdown sends a pessimistic signal to domestic production.”
“However, the encouraging growth of the industrial production index and net sales index in the same period suggests that the volume of orders for future shipments is somewhat picking up.

DoF lines up more tax reforms

THE DEPARTMENT of Finance (DoF) plans to submit to Congress this month the tax reform packages on property valuation and passive income.
“By the end of the month, we will submit package three and four sabay (simultaneously),” Finance Secretary Carlos G. Dominguez III told reporters late Thursday.
Mr. Dominguez said that the two reform packages are “mostly revenue neutral.”
The third package seeks to provide a harmonized valuation scheme for national and local taxes.
“For the real estate — hindi naman samin mapupunta yung pera (collections will not go to the national government) — we just want to make sure that the appraisal is done in an internationally accepted way and is done regularly,” Mr. Dominguez.
“Now the local government, they will have the right to tax to set the rate. We just want the valuation [standardized] because the valuation now is really crazy.”
Currently, the government has two valuation schemes for real property: zonal values prepared by the Bureau of Internal Revenue to serve as basis for estate and capital gains taxes and fair market values used by local governments to compute annual real property taxes.
The DoF’s Bureau of Local Government Finance has said that the proposed reform should ease pressure on local officials — who are elected every three years — from their constituents to keep real property assessments low, resulting in delayed review of property values despite the requirement to do so every three years.
DoF said that the reform will also supplement the unitary six percent estate and donors tax provided by the Tax Reform for Acceleration and Inclusion law.
“And then the other thing also is the higher tax on real estate, you will remove the speculative aspect of it. Because you know, it’s going to cost you too much to hold undeveloped idle real estate. So you want to force them to develop it,” Mr. Dominguez explained.
The fourth package, meanwhile, seeks to streamline taxes on financial investments.
“In the financial taxes, the goal is to simplify it. We have 80 different types of tax in financial products and instruments. We’re working very hard we were able to reduce it to about 42. Ang dami palang batas diyan,” said Mr. Dominguez.
The DoF earlier said that the package includes reduction of interest income tax earned from peso-denominated deposits to 12% from 20% and at the same time increase capital income tax rate for dollar deposits, investments, dividends, equity and fixed income, among others, to the same rate. This move would take out the arbitrage among financial products.
The DoF has also said that it would make them more inclusive by taking out the interest income tax for deposits with a minimum deposit period of five years.
The department targets Congress to approve all packages this year, including the Package 1B on general and estate tax amnesty; the second package on corporate income tax and fiscal incentives; and the Package 2+ on further hikes in tobacco and alcohol taxes, as well giving the government a bigger share of mining revenues. Packages 1B and 2, and the tobacco part of Package 2+ are now in Congress. — Elijah Joseph C. Tubayan

State economic managers cautious on federal system — Pernia

By Jose Bimbo F. Santos
One News
STATE economic managers are lukewarm to implementing federalism in the Philippines since many regions may be ill-prepared to stand on their own feet, the chief socioeconomic planner said.
Such a system could wreck the country’s fiscal health, leading to a deterioration in its investment-grade credit rating, and may blunt the infrastructure drive.
Socioeconomic Planning Secretary Ernesto M. Pernia said in a taped interview with The Chiefs, a public affairs talk show on Cignal TV’s One News that will be aired Monday 8:30 pm after the primetime newscast The Big Story, that President Rodrigo R. Duterte’s economic team believes not all regions in the Philippines are ready for federal form of government.
“Federalism my be good for the economy and for the people but we really have to do our homework first in terms of preparing well for the country to be ready for federalism,” Pernia said.
Mr. Duterte is expected to formally endorse to Congress in his July 23 State Of the Nation Address the draft charter for a federal government crafted by the 22-member consultative committee chaired by former chief justice Reynato Puno.
Mr. Pernia said “it’s unlikely that the regions will be ready” for a federal form of government and that moves to spend over P8 trillion on infrastructure till 2022, when Mr. Duterte ends his six-year term, could lose steam.
“The momentum of infrastructure improvement in the regions is going to be disrupted,” Mr. Pernia said.
BusinessWorld columnist Andrew Masigan echoed Mr. Pernia’s point during the episode, noting that “[s]ome regions don’t have the infrastructure to be self-sufficient.”
“They don’t have the farm-to-market roads, they don’t the institutions to be self-sufficient.”
Mr. Pernia said another concern is that a federal system could weigh on the state’s balance sheet.
“The expenditure will be immense,” Mr. Pernia said, estimating that the fiscal deficit may balloon to “six percent or more.”
The inter-agency Development Budget Coordination Committee has set the deficit cap for next year at 3.2% of the country’s gross domestic product.
“That’s really going to wreak havoc in terms of our fiscal situation and we will certainly experience a downgrading in our ratings,” Mr. Pernia said.
Asked if the president has been made aware of these concerns, Mr. Pernia was ambivalent, saying: “We are thinking about these concerns, too. It’s a presidential decision.”
The first-quarter Social Weather Survey of the Social Weather Stations conducted March 23-27 showed that only about one in four Filipinos knows about the federal system of government, while 75% of those surveyed said they got to know about federalism only because of the survey. The survey showed that 37% agreed with the federal system of government, 29% disagreed and 34% were undecided.

BSP seeks to allay inflation worries from RRR reduction

By Melissa Luz T. Lopez
Senior Reporter
ADDITIONAL money supply due to cuts in bank reserves has been siphoned by the central bank’s open market operations, its chief said, as he sought to dispel worries that these adjustments offset rate tightening moves.
The Bangko Sentral ng Pilipinas (BSP) has trimmed the reserve requirement ratio (RRR) to 18% via two equal one-point reductions that took effect in March and June. These moves are estimated to have released around P200 billion in additional liquidity into the financial system, before policy interest rate hikes announced by monetary authorities in their May and June policy reviews.
The Monetary Board raised rates by 25 basis points in each of those meetings, citing the need for policy tightening to rein in inflation pressures as prices of basic goods and services have kept rising faster over the past six months.
A number of economists and market watchers have said that the BSP’s recent moves have been a source of confusion as they appear contradictory.
“It is easy to say that the RR cuts result in injecting liquidity into the system at a time when inflation seems to be on the rise… This is a simplistic view,” BSP Governor Nestor A. Espenilla, Jr. said in a speech before the Bankers Institute of the Philippines on Friday last week.
“Monetary policy is evolving in the context of a financial system that is becoming more and more sophisticated. Thus, all our present reform actions — reducing our reliance on the reserve requirement to control money supply, our liberalization of the FX market, our efforts to deepen the capital market… All our macro- and micro-prudential measures are not diversions from the goals of price and financial stability.”
Mr. Espenilla added that the BSP has siphoned liquidity released by the RRR cuts. “In fact, the liquidity releasing impact of the two previous RR cuts that we’ve done so far this year is actually less than the liquidity draining impact of open market operations and our significant FX (foreign exchange) operations to manage excessive peso volatility in the face of external uncertainties,” he said. “This has resulted in tighter financial conditions as evidenced by rising market interest rates.”
The BSP has raised auction volumes for its weekly term deposit auctions, where average yields have also moved higher to hover close to the four-percent ceiling. Mr. Espenilla also pointed out that the RRR cuts are not changes to the policy stance, and were introduced to “promote efficient financial intermediation” and help curb shadow banking, as it arms big banks with usable cash to keep up with buoyant economic activity.
Mr. Espenilla added the RRR level should reach single digit — coming from 20% — “five years from now” or by the time he ends his term as BSP chief.

Online shopping seen to boost sales of fast-moving goods


By Arra B. Francia, Reporter
MORE people are preferring to shop online driven by the convenience e-commerce platforms have to offer, with sales of fast-moving consumer goods (FMCG) sold online expected to grow by 7.2% by 2020, according to global research firm Kantar Worldpanel.
In a report entitled “Winning Omnichannel: Finding Growth in Reinvented Retail,” Kantar Worldpanel noted that in 2017 alone, the global FMCG market through e-commerce platforms grew by 1.9%. This was driven by less mature markets such as Africa, Latin America, and Asia, which grew by 8.8%, 7.3%, and 4.3%, respectively.
Kantar Worldpanel made use of data from its global research team and partners who employed consumer panel data to measure real shopping behavior and retail choices of over three billion people across 28 countries to come up with the Winning Omnichannel report.
“Our research shows that on a global level, more shoppers are turning from bricks to clicks and thus, e-commerce is significantly growing and is expected to continue outpacing other FMCG sales channels,” Kantar Worldpanel Philippines’ Director Lourdes Deocareza said in a statement.
FMCG from China grew the fastest compared to other developed countries at 29%, generating $15 billion in total e-commerce sales.
Meanwhile, western Europe’s FMCG market was weighed down by inflation, growing by only 2.2%. The United States, meanwhile, only picked up by 0.5%, despite still being the largest contributor to FMCG spending in the world. The US, along with China and Japan, account for 70% of the global FMCG value in e-commerce.
Kantar Worldpanel expects India and Indonesia to further drive FMCG growth in e-commerce platforms in the future.
E-commerce is among the top three fastest-growing channels for FMCG, along with discounters — or retail shops that sell privately labeled products lower than branded prices, and cash and carry, which sells goods from a wholesale warehouse.
Traditional channels such as supermarkets and hypermarkets continued to take the largest share of FMCG sales at 49.2% in 2017. Kantar Worldpanel expects e-commerce, discounters, and cash and carry to grow by a total of 15.3% until 2020, outperforming supermarkets and hypermarkets. Share of traditional channels are projected to slip to 48.4% by 2020.
With this trend, Kantar Worldpanel said consumers are showing that they want convenience and value for money when they shop.
“Brands that adapt their retail strategy to the expected evolution of channels in their region, especially here in the Philippines, will have more possibilities to succeed. They need to understand the changing shopping behavior of the market in order to stay competitive in the FMCG shopping game,” Ms. Deocareza said.

ATR plans aircraft for short runways, night landing

By Denise A. Valdez
TURBOPROP aircraft manufacturer ATR said it is considering developing new planes that would make landing at night and on shorter runways easier, and expects a market for it in the Philippines.
In an e-mail to BusinessWorld on Monday, the European company said it would soon be launching a “ClearVision system” on its aircraft, a technology that would combine enhanced vision with synthetic vision.
“ATR is introducing a new option available on its aircraft, the ClearVision system, which it aims to have certified early next year,” said Christophe Potocki, ATR general manager for Southeast Asia and the Pacific.
“It will help pilots in the Philippines and elsewhere because it means they will be able to see better at night or during poor weather conditions,” he added.
Mr. Potocki also said the company might make a new version of its ATR 42, a short take-off and landing (STOL) aircraft, that would be able to land on even shorter runways.
He said the “super STOL” would be crafted to have the capability to land on a runway as short as 800 meters.
“This will be useful in a country like the Philippines where you have many small airports with short runways. ATR will make a decision later this year on whether to develop the ‘super STOL,’” Mr. Potocki said.
If it pushes through, and airlines in the Philippines would acquire the product, it may open new routes in locations that have airports with shorter runways. This has been an issue that limits airlines from flying to certain destinations.
ATR said last year that flights to Masbate, San Jose, Mabalacat, Canayan, Zamboanga, Tagbilaran, Virac and Cotabato were opened because of ATR aircraft.
“Using ATR aircraft has also given Philippine carriers flexibility to bypass congested Manila Airport and develop more point-to-point services in the country linking second and third-tier cities direct rather than have all the domestic traffic routed through Manila,” Mr. Potocki said.
He noted there are many airports in the country that could not accommodate a jet aircraft because of runway length and minimal passenger volume.
“The Philippines has many beautiful islands that have great potential for tourism and economic development but to facilitate that, there needs to be regular air services to the island,” he added.
ATR also announced it is making a dedicated freighter, the ATR 72-600F freighters, which will be used first by FedEx Corp. It said e-commerce is pushing the company to venture into cargo aircraft as the demand for cargo planes grows.
“It means people are ordering goods through the internet that then need to be delivered via express post. Consumers expect to receive their goods quickly, which means demand for express air cargo is growing,” Mr. Potocki said.
Last week, Cebu Pacific ordered for the conversion of two of its ATR 72-500 passenger planes into freighters, noting the Philippines’ e-commerce businesses is growing fast.

From now to eternity


POPE Gregory XIII’s calendar managed to not only approximate both the tropical year and sidereal year — the 365 days-plus-change that it takes the sun to return to the same position (after the seasons have passed) as seen from Earth, or for the Earth to complete a rotation around the sun, respectively — but also threw watchmakers a challenge, particularly those which intended to incorporate a calendar complication in their timepieces.
Patek Philippe is one those watchmakers. And it’s the Genevan brand’s continued involvement in this pursuit — especially its focus on making perpetual calendar timepieces — that was presented on July 5 and 6 during the Manila leg of its “knowledge series,” basically classroom-style lectures and presentations of current Patek Philippe annual and perpetual calendar watches.
Patek Philippe’s hyping such types of watches is hardly surprising. After all, it was the first to introduce a perpetual calendar complication (in watch-making terms a “complication” is any function that is added on top of what a mechanical watch displays, meaning the hours, minutes, and seconds) in a wristwatch.
But, to be clear about this: credit for the first perpetual calendar timepiece (not including clocks) goes to a pocket watch made by Englishman Thomas Mudge in the mid-1700s. It took another century for the Swiss to create their own perpetual calendar pocket watch, with Patek Philippe only securing a patent for its perpetual calendar movement, intended for a pocket watch, in 1889. What Patek Philippe lays claim to is the first perpetual calendar wristwatch, which it brought out in 1925.
CALENDARS, DEFINED
A perpetual calendar requires vastly more complex engineering — if not higher math — than a regular or an annual calendar function. In whichever type of calendar function though, what is common between them is that a gear in the watch movement revolves a disc on which are printed are the numbers 1 to 31, indicating the dates in a month (there are separate discs for calendars displaying days and months).
A watch fitted with a regular calendar — a date display, or a day and date display — needs to be adjusted five times in the course of a year to keep its day/date display correct. This is to account for the different number of days in a month, so the date has to be advanced to 1 on months following those ending in 30. Or 28 or 29, in the case of February.
An annual calendar function does the regular calendar one better by “knowing” which months end in 30, and which end in 31. What it does not account for is February, and so an annual calendar needs to be adjusted every March 1. Also, it cannot tell the years when February throws a tantrum and takes an extra day for itself.
As is commonly known, a year with a Feb. 29 is called a leap year. What is less well known is Pope Gregory XIII’s innovation in which not every fourth year automatically qualifies as a leap year. In the Gregorian calendar, a leap year has to be exactly divisible by four (meaning no decimal points). But it is not a leap year, even if a year is exactly divisible by four, if it is also exactly divisible by 100. In most cases these are centurial years — the end of a century. For a centurial year to qualify as a leap year it must be exactly divisible by 400. This explains why 1700, 1800 and 1900 were not leap years, but 1600 and 2000 were. The Pope’s calendar, put in place in 1582, corrected Julius Caesar’s Julian calendar, which over the preceding centuries drifted away from the equinoxes, and threw the Easter season away from the time it was originally celebrated by the Church.
A perpetual calendar accounts for both the different number of days in a particular month and the leap years over the course of a century. As shared by Deepa Chatrath, general manager for Patek Philippe’s business in southeast Asia, a “perpetual calendar must be smart enough to recognize if it’s a 28-day month, a 29-day month, a 30-day month or a 31-day month.”
PERPETUALLY PATEK PHILIPPE
Patek Philippe has dedicated much effort in tracking such intricacies of the calendar, merging astronomy with haute horlogerie in the process. It lists 27 references (or models, not including the variations of each) of perpetual calendar watches from 1941 to 2017, with three other models built between 1925 and 1937. Among these, the most notable, as cited by Ms. Chatrath, are the manually wound Ref. 96 of 1937, which featured a retrograde hand for the date display; the manually wound Ref. 1526 sold from 1941 until 1952, which pioneered the day and month apertures located at 12 o’clock; references 3448 and 3450 that were available from 1962 to 1985, which distinguish themselves as the first self-winding perpetual calendars for the brand; and the Ref. 3940 which replaced the 3448 and 3450. The Ref. 3940 was the first Patek Philippe perpetual calendar to use an extra thin caliber, a practice adopted by most of the subsequent models.
In 2014 Patek Philippe marked its 175th anniversary by taking the perpetual calendar complication for wristwatches further through its Ref. 5175 Grandmaster Chime. This piece, considered the brand’s most complicated wristwatch to date, adds two types of sonnerie, a minute repeater, a date repeater, an alarm, a moon phase indicator, and a second time zone to its perpetual calendar function. Because of this, it is also regarded as one of the most complicated watches in history.
Meanwhile, for 2018, Patek Philippe at Baselworld — the annual Swiss horology and jewelry expo — released the Ref. 5270 and the Ref. 5740, a Nautilus model fitted with a perpetual calendar. Clearly, its pursuit of the technology continues.
Crediting the brand’s “93-year experience at making perpetual calendars” as key to its mastery of the complication, Ms. Chatrath noted that Patek Philippe pieces with such functions would need to have their dates adjusted only by the time Jan. 1, 2100 rolls around (a centurial that isn’t a leap year, by the way) so these could determine the next sequence of leap years. Now, the Gregorian calendar is computed to lose only one day in 3,030 years. By all indications, Patek Philippe perpetual calendars are just as accurate. — Brian M. Afuang

BIR told to drop P28-M tax case vs Hard Rock Café

By Dane Angelo M. Enerio
THE COURT of Tax Appeals (CTA) has granted a tax petition filed by Makati City-based Hard Rock Café in Feb. 29, 2016, canceling and setting aside a P28-million tax assessment made by the Bureau of Internal Revenue (BIR) over alleged deficiency amusement tax.
According to a 22-page July 12 decision penned by CTA Third Division Associate Justice Esperanza R. Fabon-Victorino, the BIR in May 6, 2015 sent a Formal Assessment Notice (FAN) to Hard Rock Café that claimed the business had deficiency percentage tax of P27,799,898.28 representing 18% amusement tax from its P100,835,374.21 gross sales and receipts for taxable year 2013.
The tax agency said the establishment was allegedly an “amusement place” that was within the definition of night and day club and cabaret under the Revenue Memorandum Circular (RMC) No. 18-2010, which amended the National Internal Revenue Code (NIRC) of 1997, because “it serves liquor and food to its customers, with stage performances by musicians and dancers.” The RMC added an 18% amusement tax to the gross sales and receipts of cabarets and day and night clubs.
The BIR added: “[I]t is also a venue for dancing which encourages prolonged stay resulting in more revenue from sales of food and drinks to its customers”
Section 2 of Revenue Regulations (RR) No. 14-67 defined cabarets as establishments where “patrons are entertained by performers who dance and sing and/or where the patrons are allowed to dance with said performers or entertainers who are ordinarily professional hostesses while night and day clubs were defined as establishment where “foods and wines and drinks are served and music furnished and the patrons allowed to dance whether with their own partners or professional hostesses furnished by (the club.)”
The appelate court, however, found “that the business activities of [Hard Rock Café] do not fall within the scope or coverage of cabarets and/or night clubs, since there is no indication that its customers frequent its establishment to dance, either with their own partners, or with professional hostesses provided by [the café].”
“The evidence presented show that the actual business activities of petitioner are those of a restaurant, with the entertainment usually by the performances of live bands, which is merely incidental to its main business to encourage or attract customers with the end in view of promoting sales of food and drinks served in the restaurant,” the CTA said.
The CTA noted the testimony of Hard Rock Café Treasurer and Finance Controller Joseph Y. Yang, who admitted to the court the café “has no dance floor, nor does it encourage its customers to dance.”
“[F]or petitioner to be deemed a cabaret, or night and day club, it must be established that its operations involve dancing as the main business and customers patronize the place in order to dance either with their own partners or with professional hostesses engaged by petitioner for that purpose,” the CTA ruled.
The CTA pointed out: “[A]dmittedly, petitioner provides entertainment to its customers through live bands and singer, but these are incidental to the main restaurant business of providing food and drinks to its diners and are merely for the purpose of advertisement and promotion of petitioner’s restaurant.”
Aside from that, the CTA also pointed out Hard Rock Café was given by the city government of Makati a license to operate as a restaurant and that its menu “indicates that petitioner operates as a restaurant whose main line of business is to serve food and drinks to its customers.”
“Not being expressly covered by the terms ‘cabaret’ and ‘night or day club,’ pursuant to RR No. 14-67 . . . petitioner thus cannot be held liable for the payment of percentage tax (amusement tax) under Section 125(b) of the NIRC of 1997, as amended,” the CTA ruled.
Those who concurred with Ms. Fabon-Victorino’s decision were Associate Justices Lovell R. Bautista and Ma. Belen M. Ringpis-Liban.

1...12,28012,28112,282...14,244Page 12,281 of 14,244
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube