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Investors take cover in Asia ahead of US election

A VIEW of the city skyline in Singapore, Dec. 31, 2020 — REUTERS

HONG KONG/SINGAPORE – Investors are selling yen and taking shelter in cash, India, pockets of China’s markets and Singapore dollars ahead of a U.S. election that could shake out global money and trade flows.

Asia’s financial markets stand on the front line of what could be a wild ride when votes are tallied and in the months ahead since the region is an export powerhouse and shares and currencies are sensitive to changes in U.S. trade policies.

That has money managers shying away from outright wagers on the outcome and looking instead to reduce exposure to vulnerabilities from Japanese manufacturers to Hong Kong stocks and make bets in India or China that stand to gain regardless of the U.S. leader.

“We actually view China as a decent place to hide,” said Jon Withaar who manages an Asia special situations hedge fund at Pictet Asset Management, since the market has a lot of domestic drivers and lower correlation with global asset moves.

“The best thing for us to do is just sit on the sidelines and wait,” he said, having already cut down on bets in Japan, where tariffs pose a risk for automakers and Hong Kong, where foreign selling of Chinese assets is likely to focus.

In the final stretch to the Nov. 5 election, betting odds have Republican Donald Trump leading Democrat Kamala Harris and financial markets have moved to sell U.S. bonds and buy dollars in anticipation a Trump administration would increase inflation.

In Asia, the low-yielding yen is favoured for selling against the dollar. Vantage Point Asset Management chief investment officer Nick Ferres is not directly trading the election but is keeping a short yen position and owns Japanese stocks.

“Our sense is that the Donald is going to win and it might even be a Republican sweep,” he said.

“The implication for the dollar is Trump is probably a bit more pro-growth…the consequence is likely higher path of rates and even more of the rate cuts that are still there for the Fed might be priced out.”

The yen’s 6.5% drop on the dollar through October is the largest fall of any G10 currency.

CLOSE CALL
Investors say they are also seeking markets least exposed to tariff risks or where other big tailwinds, from demographics to China’s promised stimulus plans, look to be blowing.

The Singapore dollar would stand tall against regional currencies, as the city-state guides the currency, said Ray Sharma-Ong, head of multi asset investment solutions for Southeast Asia at abrdn, while Indian stocks may be insulated.

“India benefits from strong domestic economic growth, low exposure to potential trade conflict due to low export-to-GDP ratio exposure and a tilt towards services exports, supported by strong earnings that are not reliant on tech,” he said.

“We also expect the equity market to prefer defensive sectors with lower exposure to exports and potential tariffs,” such as staples and utilities.”

To be sure polls show the race is too close to call and the range of outcomes, including a drawn-out or contested vote count, mean policy implications may not be immediately obvious.

“I honestly don’t know what Trump can achieve,” said John Hempton, founder and chief investment officer of hedge fund Bronte Capital in Sydney.

“If I genuinely don’t know what I’m doing, then I just try and stay out of the way – try to minimise the damage.”

Still, Goldman Sachs notes that emerging market funds have been raising exposure to China and North Asia over the past month, which could accelerate rapidly once the election passes and uncertainty hanging over investors lifts.

“We see emerging markets equities to be well placed to outperform next year regardless of the outcome,” said Gary Tan, portfolio manager, Allspring Global Investments, as China bolsters its economy and the U.S. cuts interest rates.

“We see a Harris win being marginally more positive for emerging markets.”  — Reuters

Billionaire Ambani’s Reliance plays catch-up to ride India quick commerce wave

Source: https://www.ril.com/news-media/resource-center/media-kit/mukesh-ambani

NAVI MUMBAI, India – Asia’s richest man Mukesh Ambani is mimicking the strategy of popular Indian grocery startups to drastically change how his retail empire operates: from home deliveries that can take a day or two, his business is now targeting a 10-30 minute service.

Quick commerce has reshaped how Indians shop as Zomato, SoftBank-backed Swiggy and Zepto now promise deliveries from their neighborhood warehouses within 10 minutes, even beating Amazon. These multi-billion-dollar quick commerce businesses, though loss-making, have disrupted sales of mom-and-pop stores and supermarkets as people opt for quick deliveries of everything from milk and chocolates to Apple iPhones.

The sector has become too hot, too fast for Mr. Ambani’s Reliance to ignore, even though experts say its late entry will face challenges including a lack of small-scale warehouses and running the business from supermarkets focused on walk-in customers.

Datum Intelligence estimates quick commerce sales will hit $6 billion this year, up from just $100 million in 2020.

Reliance plans to leverage its 3,000 supermarkets in 1,150 cities for quick deliveries by deploying small teams operating from dedicated kiosks inside, according to three people familiar with its strategy and Reuters’ visits to outlets near Mumbai, where the service was launched this month.

The sources provided previously unreported details of order volume targets, delivery plans and links to Reliance Retail’s long-awaited IPO.

Reliance’s bet is sparked by changing shopping trends. A recent Datum survey of 3,000 Indian quick commerce shoppers showed 36% had reduced shopping at supermarkets and 46% cut back purchases from mom-and-pop stores.

“Reliance is making an entry as quick commerce is already impacting modern retail and will also impact Reliance stores,” said Satish Meena, an adviser at Datum.

Reliance is aiming for a 10-30 minute delivery window because it does not believe customers need orders within 10 minutes and the longer timeframe will help ensure the business is sustainable, said the first person.

Ambani wants to ensure quick commerce helps bolster its business ahead of an IPO of Reliance Retail, which was last year valued at $100 billion, has backers including KKR, two of the sources said.

Reliance runs the biggest brick-and-mortar retailer in India’s $600 billion grocery market, though it still plays catch-up with Amazon in e-commerce.

Reliance did not respond to Reuters‘ queries.

 

CHALLENGES

Reliance is betting a wider product portfolio at its supermarkets – some of which stock more than 10,000 items – will help distinguish its offering from smaller rivals, though it has decided not to add any new warehouses, the sources said.

Once expanded nationwide in coming months, Reliance expects quick commerce to help take daily orders on its JioMart app from around 200,000 now to roughly 500,000, said the second person.

Like he did with mobile data offerings, Ambani has a strong reputation of using cutthroat pricing to disrupt businesses he enters. But cracking quick commerce will not be easy.

Rahul Malhotra, a senior analyst at Bernstein, said quick commerce needs neighborhood warehouses for fast deliveries under 10 minutes, so any large retailer will need to offer superior product selection and cheaper pricing to ensure customers are willing to wait for up to 30 minutes.

A former Reliance executive who declined to be named for fear of reprisal said many stores are multi-storied and items are located far from each other on shelves, making quick packaging difficult, a task further complicated by in-store crowds.

Inside two Reliance stores in Navi Mumbai, Reuters found distinct “Q-Commerce” areas have been created for stocking frequently ordered items such as noodles, dairy products and chocolates. Riders outside waited for app alerts to pick up orders.

Ajit Karande, a Reliance store manager, said an eight-member team had been tasked to “completely focus on quick commerce”, adding “we need to bill and pack the items within 10 minutes.”

Earlier visits to IPO-bound Swiggy’s Instamart and Zomato’s Blinkit warehouses by Reuters showed workers there are mandated to pack orders in under two minutes.

 

‘TOP RIDER’, ‘BOTTOM RIDER’

The rapid quick commerce growth appears to be hitting the supermarket business.

Reliance Retail, which does not break down its grocery, fashion, electronics and telecom revenue, in October reported its first quarterly revenue decline in at least three years – a 1.1% fall in July-September sales to $9 billion.

Zomato’s Blinkit sales surged 122% to $730 million in that period and recorded average growth of 103% in the last six quarters, when Reliance Retail’s average stood at 13%, Bernstein said. But Reliance has reported profits for years, while Blinkit remains loss-making.

While Reliance has not commented on quick commerce stress, its rival DMart, which has 377 supermarkets, said this month it can “clearly see the impact of online grocery formats” on its big-city stores but has declined to compete in that area, leading several analysts to downgrade the stock.

Reliance’s “Hyperlocal” grocery service has begun in a handful of Navi Mumbai and Bengaluru stores and will next be launched in cities like New Delhi and Chennai, a fourth source said, adding there was a plan to incentivize its delivery drivers with weekly bonuses to boost the business.

The company also plans to rope in quick delivery startup Dunzo, in which it holds a near 26% stake, to further beef up its delivery fleet, said a fifth source. Dunzo declined comment.

To lure customers and trump rivals, Mr. Ambani is using free delivery.

In Mumbai, customers can use Reliance’s JioMart app to get a 40 rupees ($0.48) can of Coca-Cola delivered free. Rivals impose levies such as “small cart fee” and “high demand surge” of up to 65 rupees on such an order.

At the Reliance store in Belapur near Mumbai, riders are tracked by the minute. A whiteboard inside names “Top Picker” and “Top Rider” to acknowledge efficiency, and “Bottom Picker” and “Bottom Rider” for slow work.

A “customer order has to be delivered in 30 minutes,” said Supriya Naik, a JioMart delivery executive.

“I need to run around a lot.” – Reuters

EU slaps tariffs on Chinese EVs, risking Beijing backlash

A EUROPEAN UNION’S flag flutters outside the European Commission headquarters in Brussels, Belgium, Oct. 15, 2020. — REUTERS

BRUSSELS – The European Union has decided to increase tariffs on Chinese-built electric vehicles to as much as 45.3% at the end of its highest profile trade investigation that has divided Europe and prompted retaliation from Beijing.

Just over a year after launching its anti-subsidy probe, the European Commission will set out extra tariffs ranging from 7.8% for Tesla to 35.3% for China’s SAIC, on top of the EU’s standard 10% car import duty.

The extra tariffs were formally approved and published in the EU’s Official Journal on Tuesday, meaning they will take effect on Wednesday.

The Commission, which oversees EU trade policy, has said tariffs are required to counter what it says are unfair subsidies including preferential financing and grants as well as land, batteries and raw materials at below market prices.

It says China’s spare production capacity of 3 million EVs per year is twice the size of the EU market. Given 100% tariffs in the United States and Canada, the most obvious outlet for those EVs is Europe.

“China does not agree with or accept the ruling,” China’s commerce ministry said on Wednesday in a statement.

“We also noticed that the EU side indicated it would continue to negotiate with China on price commitments,” the ministry said, adding that Beijing hoped to find a “solution acceptable to both sides as soon as possible to avoid escalating trade friction.”

The China Chamber of Commerce to the EU said it was profoundly disappointed by the “protectionist” and “arbitrary” EU measure and was disheartened by the lack of substantial progress in negotiations to find an alternative to tariffs.

Beijing launched its own probes this year into imports of EU brandy, dairy and pork products in apparent retaliation.

It has also challenged the EU’s provisional measures at the World Trade Organization.

European automakers are grappling with an influx of lower-cost EVs from Chinese rivals. The Commission estimates Chinese brands’ share of the EU market has risen to 8% from below 1% in 2019 and could reach 15% in 2025. It says prices are typically 20% below those of EU-made models.

 

The EU’s stance towards Beijing has hardened in the last five years. It views China as a potential partner in some areas, but also as a competitor and a systemic rival, but EU members are not united on EV tariffs.

Germany, the EU’s biggest economy and major car producer, opposed tariffs in a vote this month in which 10 EU members backed them, five voted against and 12 abstained.

Germany’s economy ministry said on Tuesday that Berlin supported ongoing EU negotiations with China and hoped for a diplomatic resolution to mitigate trade tensions while protecting EU industry.

“The Federal Government stands for open markets. Because Germany in particular, as a globally interconnected economy, is dependent on this,” the spokesperson added.

German carmakers have heavily criticised the EU measures, aware that possible higher Chinese import duties on large-engined gasoline vehicles would hit them hardest.

The measures come as thousands of German industrial workers, including at the carmakers, strike for higher wages, with Volkswagen VOWG_p.DE possibly about to announce shutting plants on home soil for the first time in its 87-year history.

Hungarian Prime Minister Viktor Orban said the EU was headed for an “economic cold war” with China.

However, France’s PFA car association has welcomed duties, adding it backed free trade as long as it was fair.

The Commission has held eight rounds of technical negotiations with China to find an alternative to tariffs and said talks can continue after tariffs are imposed.

The two sides are looking at possible minimum price commitments for imported cars and agreed on Friday to hold a further round, although the Commission said there were “significant remaining gaps”.

It remains to be seen what impact tariffs will have on consumer prices. Some producers may be able to absorb them at least partially.

In the first nine months of 2024, China’s EV exports to the EU were down 7% from a year earlier, but they have surged by more than a third in August and September, ahead of the tariffs, data from the China Passenger Car Association show. – Reuters

Harris warns of dangers of another Trump presidency in speech at Jan. 6 site

US Vice-President Kamala Harris and former US President Donald Trump are seen in a combination of file photographs. — REUTERS FILE PHOTO

WASHINGTON – Democrat Kamala Harris warned tens of thousands of people gathered in Washington at her biggest rally that her Republican opponent Donald Trump was seeking unchecked power as their tightening race for the presidency entered its final week.

Ms. Harris spoke on Tuesday evening to an outdoor rally estimated by her campaign to number more than 75,000 people at the spot near the White House where on Jan. 6, 2021, Trump addressed his supporters before they attacked the U.S. Capitol.

“We know who Donald Trump is,” Ms. Harris said. She said the then-president sent an “armed mob” to the U.S. Capitol to try to overturn his loss in the 2020 presidential election.

“This is someone who is unstable, obsessed with revenge, consumed with grievance and out for unchecked power,” Ms. Harris said during what her campaign called her closing argument before a tightly contested Nov. 5 election.

More than 53 million Americans have already voted in the election, according to Election Hub at the University of Florida, in a battle that will decide who runs the world’s richest and most powerful country for four years.

Ms. Harris was flanked by American flags on stage and surrounded by blue and white banners that said “FREEDOM” with a well-lit White House behind her.

The crowd included older people and college students, people from overseas, from New York and from nearby Virginia. Many women came in groups with other female friends.

“It’s important that we do not go back to the horrible past policies under President Trump,” said Saul Schwartz, a former federal worker from Alexandria, Virginia.

“She is everything that I always wanted in a president. She is joyous. She is real, she is powerful. And she is a woman,” said Danielle Hoffmann from Staten Island, New York. “It’s time for you guys... to take a backseat because we’re driving right now,” she said, addressing men in general. Her husband, she noted, is a Trump supporter.

A Reuters/Ipsos poll on Tuesday showed that Ms. Harris’ lead had eroded to just 44% to 43% among registered voters.

Ms. Harris has led Mr. Trump in every Reuters/Ipsos poll since she entered the race in July, but her advantage has steadily shrunk since late September.

Mr. Trump and his allies have sought to play down the violence of Jan. 6.

Thousands of his supporters stormed the Capitol, sending lawmakers fleeing for their lives after Mr. Trump’s address on the Ellipse, where as president in 2021 he told the crowd to “fight like hell” to prevent Congress from ratifying his loss.

Four people died in the ensuing riot at the Capitol, and one police officer who defended the Capitol died the following day. Mr. Trump has said that if reelected, he would pardon the more than 1,500 participants who have been charged with crimes.

“We have to stop pointing fingers and start locking arms,” Ms. Harris told the Washington crowd on Tuesday and urged Americans to put divisions behind them.

 

TRUMP SAYS NEW YORK RALLY ‘AN ABSOLUTE LOVEFEST’

In Florida earlier in the day, Mr. Trump sought to move on from the racist and other vulgar remarks made by allies at his New York rally on Sunday.

Mr. Trump did not comment on the remarks made by speakers at the Sunday event where comedian Tony Hinchcliffe called Puerto Rico a “floating island of garbage” and disparaged Black Americans, Jewish people, Palestinians and Latinos.

Mr. Trump’s campaign had said previously that the comments about Puerto Rico did not reflect the former president’s views, but Trump on Tuesday called the New York event “an absolute lovefest” and said he was honored to be involved.

President Joe Biden drew ire from Mr. Trump’s campaign for remarks he made about the Sunday rally during a fundraising call on Tuesday.

According to a transcript posted by a White House spokesperson on X, Mr. Biden said: “the only garbage I see floating out there is his supporter’s – his – his demonization of Latinos is unconscionable and it’s un-American.”

Several news organizations cited the same quote but without the apostrophe.

Mr. Biden later posted on X, the social media site: “Earlier today I referred to the hateful rhetoric about Puerto Rico spewed by Trump’s supporter at his Madison Square Garden rally as garbage — which is the only word I can think of to describe it. His demonization of Latinos is unconscionable. That’s all I meant to say. The comments at that rally don’t reflect who we are as a nation.”

 

COURTING HISPANIC VOTERS

As Ms. Harris spoke in Washington, Mr. Trump visited a heavily Hispanic city in Pennsylvania, two days after Hinchcliffe’s comments about Puerto Rico drew outrage at the New York rally.

The U.S. Census Bureau says Puerto Ricans are the largest Hispanic group in Pennsylvania, a state that holds the highest number of Electoral College votes of the seven battleground states expected to decide the election.

“I’d like to begin with a very, very simple question: Are you better off now than you were four years ago? I’m here today with a message of hope for all Americans,” Mr. Trump said.

Ms. Harris, who would be the first female president, and Mr. Trump, seeking a return to office after his 2017-21 term, diverge on support for Ukraine and NATO, abortion rights, taxes, basic democratic principles and tariffs that could trigger trade wars.

On tariffs, Mr. Trump on Tuesday explicitly mentioned the European Union. “They’re brutal,” he said in Pennsylvania. “They sell millions and millions of cars in the United States. No, no, no, they are going to have to pay a big price.” – Reuters

 

Australia to ramp up missile production as Indo Pacific enters new missile age

STOCK PHOTO | Image by Dice Me from Pixabay

SYDNEY – Australia said it will establish domestic manufacture of artillery ammunition with France’s Thales, and guided rocket systems with Lockheed Martin, to boost its weapons stockpiles and export to security partners including the United States.

Minister for Defense Industry Pat Conroy said in a speech on Wednesday that Australia was boosting its missile defense and long-range strike capability.

“Why do we need more missiles? Strategic competition between the United States and China is a primary feature of Australia’s security environment,” he told the National Press Club in Canberra.

China test fired an Intercontinental Ballistic Missile in September that travelled over 11,000km to land in the Pacific Ocean to Australia’s north-east.

Conroy did not mention the Chinese test in his speech, but said the Indo Pacific was on the cusp of a new missile age, where missiles are also “tools of coercion”.

“They pose a threat night and day, regardless of when or whether they are actually launched,” he said.

Australia has previously said it would spend A$74 billion ($49 billion) on missile acquisition and missile defense over the next decade, including A$21 billion to fund the Australian Guided Weapons and Explosive Ordnance Enterprise, a new domestic manufacturing capability.

“We must show potential adversaries that hostile acts against Australia would not succeed and could not be sustained if conflict were protracted,” Conroy said in the speech.

Australia will spend A$316 million to establish local manufacture of Guided Multiple Launch Rocket Systems (GMLRS), in partnership with Lockheed Martin, to produce the rapidly deployable, surface-to-surface weapons for export, from 2029.

The factory will be capable of producing 4,000 GMLRS a year, or a quarter of current global production, Conroy said.

France’s Thales will establish Australian manufacturing of 155mm M795 artillery ammunition, used in howitzers, at an Australian government-owned munitions facility in the small Victorian city of Benalla.

It will be the first dedicated forge outside of the U.S., with production starting in 2028, and the capacity to scale up to produce 100,000 rounds a year.

The war in Ukraine was using 10,000 rounds of 155-millimeter artillery shells a day last year, outstripping European production, he said.

“In a world marked by supply chain disruption and strategic fragility, Australia needs not only to acquire more missiles, but to make more here at home,” he said.

In August, Australia said it would jointly manufacture long-range Naval Strike Missiles and Joint Strike Missiles with Norway’s Kongsberg Defence in the city of Newcastle on Australia’s eastern coast, the only site outside of Norway.

Earlier this month, Australia announced a A$7 billion deal with the United States to acquire SM-2 IIIC and Raytheon SM-6 long-range missiles for its navy.

Australia’s navy will also have Tomahawk missiles, with a range of 2,500 km (1,550 miles), by the end of the year, increasing the fleet’s weapons range 10-fold. – Reuters

Australian grocer Woolworths warns food earnings to fall as shoppers seek bargains

By Orderinchaos - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=71024040

SYDNEY – Australian grocer Woolworths warned first-half profit from its main Australian food division would dip as a hunt for bargains and intense scrutiny of supermarkets during a cost-of-living crisis lower shelf prices, sending its shares tumbling.

The company, which is being sued by the consumer regulator for alleged fake discounts, said sales in the September quarter rose as shoppers bought more cheap goods, but its margins were being squeezed and food profit would fall in the six months to December.

The limited first-quarter update reflects the tough environment for market leader Woolworths and rival Coles, which dominate Australian grocery sales. The companies have become targets of consumer angst about elevated living costs while they themselves face persistently high expenses.

The supermarket operators are being sued by the Australian Competition and Consumer Commission (ACCC), which accused them of jacking up prices then luring customers with relatively small discounts. They also face a host of influential government inquiries, and some lawmakers have called for them to be broken up.

Sydney-based Woolworths forecast earnings before interest and taxes between A$1.48 billion ($970.73 million) and A$1.53 billion for Australian food in the half-year ending Dec. 31, down from A$1.60 billion a year earlier. The company said the forecast was below its previous expectations, without adding what those were.

At the midpoint, the forecast is about 9% below Citi and about 7% below Visible Alpha consensus expectations.

“Costs increasing, as we see across every other business in the country, and inflation coming down, which is good for customers, makes for a challenging mix,” said CEO Amanda Bardwell told reporters.

“We’ve got customers ever more seeking value and … trading more into deeper specials and promotions. That absolutely has an impact.”

Bardwell declined to comment on the ACCC lawsuit but said “what’s important … is continuing to focus on how we rebuild customer trust in the current environment”.

Shares of Woolworths were 6% lower in morning trade, contributing to a broader market decline .AXJO of 0.3%, as investors digested the profit warning. Shares of Coles, which is expected to give a quarterly update on Thursday, were down 2%.

“The downgrade has been driven by greater discounting and higher than expected online sales that have impacted margin mix,” Citi analysts said in a note.

“Woolworths appears to have lifted discounting to improve sales momentum in the face of weakening brand perception.”

Australia’s central bank has maintained interest rates at a 12-year peak while inflation remains above its targeted levels, leading to higher housing costs and tighter consumer spending, including on food.

Woolworths posted total group sales of A$18 billion for the September quarter, compared with A$17.22 billion a year ago, beating a Visible Alpha consensus estimate of A$17.25 billion. – Reuters

India’s festive gold buying spree continues, defying record price

STOCK PHOTO | Image from Freepik

MUMBAI – Indian buyers of gold brushed off record high prices and made purchases for the Dhanteras and Diwali festivals starting on Tuesday, hoping bullion would continue to rally and deliver promising returns amid a cooling stock market, industry officials told Reuters.

Robust demand in the world’s second-biggest gold consumer could further support global prices, which hit record highs last week. Rising demand for imports of gold could also widen India’s trade deficit and put pressure on the rupee.

“People are still into gold big time, even with prices at record highs during Dhanteras. With gold giving better returns than the stock market, there’s been solid demand for coins and bars,” said Saurabh Gadgil, chairman of PNG Jewellers PNGD.NS.

Indians were celebrating Dhanteras on Tuesday, a day considered auspicious for buying gold and one of the busiest gold-buying days in India.

Local gold prices MAUc1 jumped to a record high of 78,919 rupees per 10 grams last week, marking an increase of more than 31% since last year’s Diwali. India’s NSE Nifty 50 share index has dropped about 7% from a record high hit on Sept. 27.

Investors are working to diversify their portfolios by adding to or increasing their allocations in gold and silver, Gadgil said.

“In value terms, turnover during this year’s Dhanteras is expected to be significantly higher than last year due to higher prices. In volume terms, it may be slightly lower or around the same level as last year,” Prithviraj Kothari, president of the India Bullion and Jewellers Association (IBJA), said.

Indian dealers on Tuesday charged a premium of up to $1 an ounce over official domestic prices – inclusive of 6% import and 3% sales levies, up from the last week’s discount of $4.

Local silver futures hit a record high of 100,081 rupees per kilogram last week.

“Demand for silver coins and bars was strong today, as silver has delivered better returns than gold in recent months,” said Chirag Thakkar, CEO of Amrapali Group Gujarat, a leading silver importer. – Reuters

ACCESS MCLE upholds commitment to offer the most interesting MCLE courses

When it comes to providing the best and most in-demand programs for mandatory continuing legal education (MCLE) in the country, ACCESS MCLE continues to be the leader. The legal education provider has always been ahead of the league, setting the standard with the commitment to keep Filipino lawyers abreast of the changing legal landscape.

“By providing interesting courses with thought-provoking topics that are conversation starters, ACCESS is continuously persuading our practicing legal professionals to comply with the MCLE requirement,” says Atty. Peaches Martinez-Aranas, Co-Founder of ACCESS MCLE.

“We always offer new courses with new topics that are available only from ACCESS. It is not unusual for speakers of different providers to lecture on exactly the same topic across various providers. But in ACCESS, we make sure all our topics are unique and carefully curated, meticulously written by our seasoned lecturers specifically and exclusively for ACCESS learners,” she added.

Equally interesting learning tools

To further build interest in its curated and timely topics, ACCESS has pioneered in using the most effective learning aids when conducting MCLE lectures, whether in face-to-face (classroom) or online setup.

“We also make sure that our courses are presented with interesting animation and fun gamification to take learning to another level,” says Atty. Martinez-Aranas. “Such materials boost engagement and retention during lectures, making MCLE more enjoyable for lawyers across all ages.”

ACCESS MCLE has tapped the expertise of e-learning solutions provider Jump Interactions to guarantee flexibility especially when producing on-demand or online lectures, which are currently the more in-demand option for taking MCLE among Filipino lawyers due to its convenience and cost effectiveness.

Thus, ACCESS is considered an innovator and trend-setter in its industry. It has introduced the use of creativity in learning, which complements its strategic approach when developing courses on topics that are attuned with the ever-changing society and environment.

Tapping legal luminaries as lecturers

ACCESS MCLE is also known for bringing the country’s legal luminaries to convey topics in their respective areas of expertise that would interest and engage learners. Every compliance period, ACCESS introduces new topics to further widen the options for local legal practitioners. 

Some of the most interesting and timely courses offered during the 8th Compliance Period are “Exploring the Right to Have a Good and Dignified Death” by Atty. Neil Anthony Borja, “Impugning Filiation: Is the Child Yours?” by Atty. Katrina Legarda, “Food Adequacy as a Demandable Right” by Atty. Karlo Alexei Nograles, and “Reproductive Health as a Basic Human Right of Filipino Women” by Atty. Joan de Venecia-Fabul, among others.

“ACCESS is committed to constantly bringing more choices in courses, along with higher level of animation and gamification as well as improvement on all aspects of course design and delivery. We are known for always leveling up MCLE in the country and we’ll keep it that way,” Atty. Martinez-Aranas concludes.

All three modes or platforms for learning are currently available for MCLE learners at ACCESS — face-to-face sessions are for those preferring to take traditional classroom-style learning, while online synchronous sessions are facilitated online via Zoom for real-time lectures and online asynchronous sessions use videos on-demand to conveniently and creatively present topics or lessons.

To learn more about ACCESS MCLE and its programs, visit https://accessonline.ph/.

 

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Forest Lake launches new Pagpag video: A blend of humor, Filipino culture, and a reminder to plan for the future

Forest Lake Memorial Parks has released the fourth installment of its groundbreaking series, Pagpag.

Following three humorous and fun videos that featured unique Filipino cultural beliefs, trusted name in memorial care Forest Lake Memorial Parks has released the fourth installment of its groundbreaking series in time for Halloween, Pagpag.

In a light-hearted and quirky way, Pagpag is a Halloween video that explores the Filipino tradition of “pagpag,” in which mourners avoid going home straight from a funeral wake to “deter” the spirit of the departed from following them home.

The Pagpag Halloween Video is the fourth video of a campaign series titled ‘Di Mo Inexpect No.’

Through this long-standing custom, Forest Lake also delivers a deeper and more significant message: while we may try to delay or avoid death, the “end of life” is very much a part of our life cycle — and one that we must ultimately embrace. In Pagpag, Forest Lake also reminds families of the importance of planning ahead — taking proactive steps for the future as preparedness is key to ensuring security for the ones we love.

Forest Lake uses its Halloween Video to approach the realities of death in a lighthearted way.

“Old customs like ‘pagpag’ reflect Filipinos’ desire to shield themselves and their families from the unknown. Forest Lake, however, believes that true peace of mind comes not from avoiding the topic of death, but from accepting it as an inevitable part of life and preparing for it in meaningful ways,” said Alfred Xerez-Burgos III, CEO & President of Forest Lake Development, Inc.

The Pagpag Halloween video is the fourth video of Forest Lake’s campaign series titled ‘Di Mo Inexpect No’, which aims to present Filipino life-and-death-related customs and superstitions in unique and unexpected ways.

Previous videos in the series are Paliwanag, which reflects on the unpredictability of life; Itim na Pusa, which tackles superstitions involving bad luck; and Talon, a fun take on the belief that jumping on New Year’s Eve will make you taller.

This latest campaign stresses the importance of preparation, reminding Filipinos that accepting death is also about planning for it in different ways: arranging memorial services, securing interment rights, and considering long-term care options, which, in the long run, ease the emotional and financial burdens that come with loss.

Forest Lake helps Pinoys anticipate the realities of deaths with their line of deathcare services.

Juan Carlos Xerez-Burgos, Director for Business Development & Digital at Forest Lake, adds, “We hope this campaign helps Filipinos face death with a lighter heart, knowing that with preparation, they can offer comfort to their loved ones. We’re here to support families in every step of the way.”

Designed to provide comprehensive support while celebrating and preserving memories for generations, Forest Lake’s Total Memorial Care Services include the following services, Libing Anywhere, which provides flexibility in interment locations; Libre Burol, a free standard funeral service for families availing of interment services; QRonicle, a digital storytelling platform that allows families to store and share stories of loved ones; and the easy-to-use Customer Portal, which enables families to purchase memorial services with just a few clicks.

For more information on Forest Lake Memorial Parks and their services, visit their social media pages: Facebook (@forestlakememorialparks), and Instagram (@forestlakememorialparks), and explore hashtags #Pagpag, #ForestLakeCares, and #TotalMemorialCare.

For over 27 years, Forest Lake has established itself as a leader in providing thoughtfully designed, family-friendly memorial parks throughout Luzon, Visayas, and Mindanao. These parks are more than places of remembrance; they are vibrant spaces where families gather, connect, and celebrate their loved ones’ memories.

Forest Lake has established itself as a leader in providing thoughtfully designed, family-friendly memorial parks throughout the country.

As the foremost memorial park developer in the Philippines, with over 37 parks nationwide, Forest Lake is committed to expanding its offerings to include total memorial care services such as chapels, columbariums, and cremation. This expansion underscores the company’s dedication to meeting the evolving needs of Filipino families.

Guided by its mission to create “A Better Place,” Forest Lake upholds values of innovation, creativity, teamwork, personalized service, value creation, and professionalism. The company integrates cutting-edge technology to enhance service delivery and foster a seamless, personalized experience for every client. Forest Lake’s collaborative approach ensures that each park is a testament to thoughtful design and professional excellence, offering significant value to both clients and investors through low-risk, high-yield opportunities.

Forest Lake Memorial Parks is headquartered on the third floor of Alexcy One Building, 51 President’s Avenue, 1718, Parañaque City. For more information, email info@forestlakeparks.com or visit forestlakeparks.com. Follow Forest Lake on Facebook and Instagram.

Join Forest Lake in its vision to provide spaces where the memories of loved ones are celebrated and immortalized, and where families can create new, lasting memories together. Check out the viral video on Facebook, YouTube, and TikTok.

 

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August infrastructure spending declines 11%

HEAVY FLOODS are seen along Araneta Avenue in Quezon City, Aug. 28, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

INFRASTRUCTURE SPENDING by the National Government declined by an annual 11.1% in August as heavy rains hampered the implementation of public works projects, the Department of Budget and Management (DBM) said. 

In its latest report posted on its website on Tuesday, the DBM said infrastructure and other capital outlays fell to P108.6 billion from P122.1 billion a year earlier.

Month on month, infrastructure spending dropped by 13.1% from P125 billion in July.

The DBM attributed the drop  to lower disbursements by the Department of Public Works and Highways (DPWH) due to “adverse weather conditions which slowed down project implementation.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said recent typhoons had caused heavy floods that delayed infrastructure projects.

The DBM also cited “delays in the submission of billing documents by contractors, which affected the timelines for the processing and release of payments for ongoing projects.”

There were also adjustments in project timelines as some major infrastructure projects experienced delays or were rescheduled, it said.

About P22 billion worth of outstanding checks as of end-August had not yet been encashed by contractors, the DBM said.

“Likewise, capital expenditures were down year on year sans the big-ticket releases for local counterpart funds for the various foreign-assisted projects of the DoTr (Department of Transportation),” the DBM said.

As of Aug. 31, key allotment releases included P13.3 billion under the DoTr for capital outlays.

This was allocated “mostly to cover the loan proceeds requirement for the implementation of the Davao Public Transport Modernization Project and for the payment of right-of-way expenses relative to the implementation of the Metro Manila Subway Project Phase I and North-South Commuter Railway System,” the DBM said.

About P3.7 billion was also released to the Department of Information and Communications Technology at the end of August as part of the funding requirements for the government’s Free Internet Wi-Fi Connectivity in Public Places program.

In the January-August period, infrastructure and other capital outlays rose by 14.2% to P845.3 billion from P740.3 billion a year ago.

The DBM expects infrastructure spending to improve after the issuance of P15.1 billion worth of allotments to the DPWH in September. This will mainly cover the government’s counterpart requirements for various foreign-assisted projects this year, such as the Metro Manila Subway, North-South Commuter Railway System and Davao Public Transport Modernization Project.

About P10 billion will be allotted for the revised modernization program of the Armed Forces of the Philippines.

Mr. Ricafort said agencies would likely ramp up infrastructure spending before the midterm elections in 2025.

“For the coming months, government spending especially on infrastructure and other projects could be accelerated in preparation for the midterm elections, especially before the election ban, which could be a major source of economic growth.”

Nigel Paul C. Villarete, senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc., said the government should implement catch-up plans as bad weather could affect construction schedules.

“Midyear to later months will have much more deviations in spending due to the onset of the rainy season, which has a significant effect on construction schedules,” he said in a Viber message.

The government aims to spend 5-6% of gross domestic product on infrastructure this year. — Beatriz Marie D. Cruz

Supreme Court issues TRO vs PhilHealth fund transfer

A person holds a sign protesting the transfer of Philippine Health Insurance Corp. funds to the National Treasury during a rally in Manila. — PHILIPPINE STAR/EDD GUMBAN

By Chloe Mari A. Hufana, Reporter

THE SUPREME COURT (SC) issued on Tuesday a temporary restraining order (TRO) on the further transfer of excess funds of Philippine Health Insurance Corp. (PhilHealth) to the National Treasury.

“The TRO is effective immediately,” SC Spokesperson Camille Sue Mae L. Ting said. “The TRO is just really to prevent the further transfer of more funds from PhilHealth to the National Treasury.”

The SC consolidated the petitions filed by 1SAMBAYAN Coalition, a group led by Senator Aquilino Martin “Koko” D. Pimentel III and another group led by Bayan Muna Chairman Neri J. Colmenares.

The three petitions were filed to stop the transfer of P89.9 billion in excess funds from PhilHealth to the National Treasury.

“All three petitions challenge the return of excess reserve funds from government-owned and -controlled corporations to the National Treasury to fund unprogrammed appropriations,” the SC public information office said in a statement.

The TRO was issued after P60 billion in PhilHealth funds have already been transferred to the Treasury in three tranches since May.

A fourth and final tranche worth P29.9 billion was scheduled to be transferred to the Treasury in November.

Ms. Ting said it is still possible for the High Court to tackle the plea for a status quo ante order, which could allow the return of the P60 billion to PhilHealth’s coffers.

The oral arguments scheduled for Jan. 14, 2025, would push through, she added.

A copy of the TRO had yet to be released.

In a statement, Finance Secretary Ralph G. Recto said the department “respects the Supreme Court’s intervention.”

“I recognize the right of every citizen to seek redress from the courts. Rest assured that the DoF (Department of Finance) will fully comply with the order of the Supreme Court,” he said.

“We give our full cooperation to the Supreme Court as we look forward to the opportunity to shed light on the issues presented during the oral arguments.”

A provision included in the 2024 General Appropriations Act allowed the DoF to issue Circular No. 003-2024, authorizing PhilHealth and the Philippine Deposit Insurance Corp. to transfer P89.9 billion and P110 billion, respectively.

These would help fund unprogrammed appropriations worth P203.1 billion, which would support government programs in health, infrastructure and social services.

“We reiterate that before proceeding with the utilization of GOCC (government-owned or -controlled corporation) idle funds, our agency exercised due diligence and consulted extensively with the government’s legal experts,” Mr. Recto said.

“These include the Governance Commission for GOCCs, the Government Corporate Counsel and the Commission on Audit. These efforts were undertaken to ensure full compliance with our laws,” he added.

In a statement, PhilHealth said it fully respects and will abide by the ruling.

PhilHealth said it remains focused on its mission to provide healthcare to Filipinos through “better and responsive benefit packages and availment policies that ensure greater access to healthcare services.”

Solicitor-General Menardo I. Guevarra, whose office represents government agencies in legal cases, said they would “respect the TRO,” noting that it is “limited to PhilHealth funds only.”

One of the petitioners, former SC Senior Associate Justice Antonio T. Carpio, said the TRO “saves the poorest of the poor of Filipinos… whose only source of life-saving medicine is PhilHealth.”

“We hope that the Executive branch will return all the transferred funds back to PhilHealth pending the final decision of the Supreme Court,” he said in a Viber group chat message with reporters.

Mr. Carpio, along with 1SAMBAYAN, said in their petition that since PhilHealth funds are “special funds,” they cannot be transferred unless their purpose has been abandoned or accomplished.

They added that the fund transfers violated Article VI, Section 25 (5) of the Constitution. Under the Charter, “no law shall be passed authorizing any transfer of appropriations.”

Former Finance Undersecretary Cielo D. Magno, who filed the first petition questioning the transfer with Mr. Pimentel, said they are hoping the top court would declare the fund transfer as unconstitutional.

“This measure will temporarily stop the financial hemorrhage of PhilHealth,” she told BusinessWorld in a Viber message.

PHL motor vehicle production jumps 35% in Aug.

Workers at the Toyota Aisin Transmission Plant at the Toyota Special Economic Zone, Santa Rosa City, Laguna, Aug. 22, 2023. — YUMMIE DINGDING / PPA POOL

By Justine Irish D. Tabile, Reporter

PHILIPPINE MOTOR VEHICLE output jumped by 34.7% in August, logging the second-fastest growth in the region, the ASEAN Automotive Federation (AAF) said.

In a report released on Tuesday, the AAF said the country produced 10,941 units in August, 2,816 more than 8,125 units produced a year earlier.

At 34.7%, the Philippine motor vehicle output growth was behind Myanmar’s 48.7% growth but faster than the 8.9% growth in Malaysia.

It also outperformed the 11.3% decline in the region during the month. A decline in output was seen in Vietnam (7.4%), Indonesia (14.6%), and Thailand (20.6%).

In the first eight months of 2024, Philippine motor vehicle production expanded by 17.3% to 86,585 units from 73,789 a year ago.

This was the second-fastest growth in the region, behind Myanmar, which expanded by 180% to 1,697 units in the first eight months from 606 last year.

In third spot was Malaysia, whose production grew 7.8% to 536,313 units from 497,309 a year ago.

Indonesia (18%), Thailand (17.7%), and Vietnam (8.5%) recorded a drop in production in the January-to-August period. The region’s production had fallen by 12% to 2.51 million as of end-August.

Meanwhile, motorcycle and scooter production in the Philippines surged by 101.3% in August to 115,974, the fastest growth so far this year.

The Philippines posted the highest growth in motorcycle and scooter production among the four countries in August. Indonesia posted a 6.9% growth in production to 630,601 units, followed by Malaysia where output went up 3.3% to 53,323 units.

Motorcycle and scooter production in Thailand slumped by 15.8% to 144,244 units in August.

Overall, the four countries produced 944,142 motorcycles and scooters in August, up by 8.5% from 870,144 units a year ago.

In the first eight months, Philippine motorcycle and scooter production jumped by 5.2% to 893,293, followed by Indonesia which increased production by 2.2% to 4.69 million.

Thailand saw a 12.2% drop in production to 1.29 million, while Malaysia’s output fell by 9.6% to 365,876.

This brought the region’s total motorcycle and scooter production to 7.24 million in the January-to-August period, down 1% from 7.31 million a year ago.

Vehicle manufacturers may have ramped up production in August in anticipation of increased demand.

Toyota Motor Philippines, Inc. (TMP) First Vice-President for Corporate Affairs Josephine Villanueva said production is also driven by market requirements.

“We have been placing greater importance in providing the best Toyota ownership experience to our customers. As the customer requirements continue to evolve, we ensure that we provide value-chain offerings suited to the needs of the Filipino market,” she said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said higher vehicle sales might have also spurred manufacturers to ramp up production.

“For the coming months, rate cuts could further reduce borrowing costs, thereby further supporting demand for auto and motorcycle loans that could, in turn, lead to faster growth in vehicle and motorcycle sales and production,” he said in a Viber message.

Last week, TMP President Masando Hashimoto cited cooling inflation, strong remittances from overseas Filipino workers and interest rate cuts as revenue drivers.

In the AAF report, the Philippines had the third-fastest growth in motor vehicle sales in the first eight months at 10.3% to 304,765 units.

Meanwhile, motorcycle and scooter sales grew 4.9% in the January-to-August period to 1.1 million, representing the fastest growth in the region.

Region-wide, motor vehicle sales declined by 7.7% to 2.02 million, while motorcycle sales were almost flat (0.3%) at 6.98 million.

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