Growing up

August 30, 2017 | 12:05 am

Text and photos by Kap Maceda Aguila

AS the crossover vehicle format has gained increased traction in the market, automakers have continued to scramble to develop their own products in the niche. That premium manufacturer Mercedes-Benz releases the GLA is further testament to the robustness of market demand for a car that marries the tenets of SUVs and the sedan.

Growing up

First launched in 2013 at the Frankfurt Auto Show, the car’s nomenclature suggests how it is classified by the Stuttgart-based car maker; the G stands for geländewagen (German for “off-road vehicle”) and the LA points to its affinity with the A-Class. The updated variant was unveiled globally last January at the Detroit Motor Show, and sports a slew of tweaks and options.

“The refreshed GLA comes with an extended range of engines, targeted visual accentuation in the interior and exterior design plus updated equipment lines. This sees the look of the compact SUV gaining considerably in presence, and the body impresses with a significantly more powerful design idiom,” said Mercedes-Benz Philippines in a statement.

Powered by a 2.0-liter, four-cylinder engine developing 381hp and 475Nm, the GLA 45 4MATIC variant boasts all-wheel drive with AMG’s performance 4MATIC gearbox. This supplies variable torque distribution. The GLA’s power plant is mated to an AMG SPEEDSHIFT DCT seven-speed sports transmission.

Growing up — Options include 20-inch light-alloy wheels that can come in either matte black with high-sheen rim flange, or titanium gray with a high-sheen finish.

Mercedes-Benz improves the styling on the new GLA, supplying it with updated light-alloy wheels, heftier bumpers, and a redesigned grille. The bi-xenon head lamps have now been swapped with LEDs, which are reported to boast “brilliant illumination” and “are characterized by a color temperature similar to daylight and relieve the strain on the eyes at night.” The new headlights also consume significantly less power — 60% lower than xenon and 70% less than halogen.

Among the exterior changes are the low A-pillar step with corresponding A-pillar geometry and aerodynamically optimized exterior mirror housings. Trims on the main floor, center section of the rear axle, and “aerodynamically optimized rear silencer with a connected diffuser improve the flow of air beneath the underbody.” In addition, an “elaborate roof spoiler lip, specially shaped tail lights plus discreet side rear spoilers also ensure that the air flow at the tail end is… optimal.” These changes have actually lessened the GLA’s coefficient of drag from 0.29 to 0.28.

The new Mercedes-AMG GLA 45 4MATIC boasts a sharpened front section, with an apron given a more dynamic shape, new air intake grilles, and a splitter insert in silver chrome plus flics in high-gloss black. A twin louver on the radiator grille is now rendered in silver chrome, as are the inserts in the side sill panels. “As an additional option, a multi-spoke 20-inch light-alloy wheel is available for selection in two color variants: painted matte black with high-sheen rim flange or painted titanium gray with a high-sheen finish.”

The Smartphone Integration Package (available in select units) allows users to pair iOS and Android smart phones to the infotainment system — accessing interfaces, apps and voice recognition via Apple CarPlay and Android Auto.

In the area of safety, Mercedes-Benz supplements the GLA with Active Brake Assist as standard. The system warns the driver if the vehicle in front gets too close and, if required, delivers situation-appropriate braking force — particularly if the driver is reacting too late. Also standard is the Attention Assist system which detects “typical signs of drowsiness via the steering behavior and warns the driver about an impending microsleep.”

Another new feature in the GLA is the hands-free access to the rear boot. The tailgate can be opened and closed with a wave of a leg or foot at the back.

During the launch held at a Makati City mall, Mercedes-Benz Philippines also purveyed the positioning of the GLA as a vehicle for one who has, well, crossed over into adulthood. With the motto “grow up,” the GLA seeks to reflect the values that responsible and conscientious individuals must have. Clearly, it’s about the art of arrival.

Holiday on Sept. 1 for Muslim Feast of Sacrifice

August 30, 2017 | 12:04 am

FRIDAY, SEPT. 1, has been officially declared a holiday for the observance of Eid’l Adha, or Feast of Sacrifice, considered as one of the two great feasts for Muslims. Malacañang released yesterday Proclamation 297 based on Republic Act 9849, which sets the annual festival as a regular holiday. The date for the Eid’l Adha, like the Eid’l Fitr at the end Ramadhan, changes based on the Islamic lunar calendar. Amina Rasul-Bernardo, president of the Philippine Center for Islam and Democracy, wrote on her Sept. 25, 2015 column on BusinessWorld that the Eid’l Adha “commemorates the story of the Prophet Ibrahim (Abraham), who was ready to sacrifice his son Ismail (Ismael) at Allah’s command. As the prophet was on the verge of sacrificing his son, God spared Ismail and replaced him with a lamb.” In modern times, she continued, “Pilgrims no longer have to do the act themselves. They contribute a fee and millions of sheep and goats (cows, if sheep and goats are not available) are ritualistically slaughtered and the meat donated to the poor all over the world.”

Maynilad allots P7B for QC water treatment plant upgrade

August 30, 2017 | 12:04 am

MAYNILAD Water Services, Inc. is spending around P7 billion to upgrade the La Mesa water treatment plants (LMTP) in Quezon City with 2020 as the target completion year, an official of the water concessionaire said on Tuesday.

“Investment in additional treatment technologies is necessary given the dramatic shifts in raw water quality brought by climate change,” said Randolph T. Estrellado, Maynilad chief operating officer, in a statement.

The facilities have a combined production capacity of 2,400 million liters per day (MLD), and supplies potable water for about nine million customers of Metro Manila’s west zone concessionaire.

“With this upgrade, water service to our customers will no longer be affected whenever turbidity level in the raw water increases,” he added.

The “massive” improvement project will involve enhancing the facilities’ treatment capacity, retrofitting structures to better resilient to quakes, and automating processes for more reliable operations, Maynilad said.

The project will also enhance the treatment technology used in the plants to respond to the problem of increasing turbidity levels in the raw water from Angat and Ipo dams.

“Maynilad is upgrading the treatment capacity of LMTP 1 and 2 from only 300 NTU (nethelometric turbidity units) to 2,000 NTU,” the company said.

Ramoncito S. Fernandez, Maynilad president and chief executive officer, said the project is part of the company’s P42-billion capital expenditure plan for 2013 to 2017.

He said the company is pursuing the projects “despite the delayed implementation of the tariff adjustment because we have an obligation to our customers, and that includes pursuing the projects that will sustain improved service levels for current and future water consumers.”

Maynilad, the country’s largest water concessionaire in terms of customers, is an agent and contractor of the government agency Metropolitan Waterworks and Sewerage System.

It serves certain portions of the cities of Manila, Quezon and Makati. It also covers Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon in Metro Manila.

Outside the Philippine capital, it serves the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.

Metro Pacific Investments Corp., which has majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

The Leonard Bernstein project celebrates the musician with a call for memories

August 30, 2017 | 12:04 am

FOR SOME, Leonard Bernstein was the person who opened up the world of classical music for the first time. Others played in his orchestras. One man remembers hearing of Bernstein’s death as a nine-year-old.

LEONARD BERNSTEIN is shown in this 1971 photo in rehearsal for his musical theater work *Mass*. — *PHOTO COURTESY MARION S. TRIKOSKO/US NEWS & WORLD REPORT MAGAZINE PHOTOGRAPH COLLECTION/LIBRARY OF CONGRESS/HANDOUT VIA REUTERS*

Composer, conductor and teacher, Bernstein touched the lives of millions of people around the world during his 50-year career, and now they have a chance to tell their stories for generations to come.

“There were so many people that were moved and inspired by Leonard Bernstein, not only in a public way but in a very personal way,” said the conductor’s longtime personal assistant, Craig Urquhart.

The Leonard Bernstein Memory Project invites fans, friends or just people who were influenced by his work to contribute brief anecdotes, photos or videos online.

The project is part of a two-year centenary celebration of the musician’s life and work called Leonard Bernstein at 100 that starts in September and will feature more than 1,000 concerts and celebrations around the world.

“We hope to hear from people who studied with him, musicians who performed with him in orchestras,” Urquhart said.

American composer Leonard Bernstein, the longtime director of the New York Philharmonic, was known for the emotion he brought to his conducting and interpretation of classical works. He died in 1990, leaving a legacy that includes popular musicals like West Side Story, television lectures and hundreds of recordings.

Jacob Slattery, who is building the Leonard Bernstein Memory Project Web site (leonardbernstein.com/memories), calls it a “digital quilt of remembrance.”

“It’s a very unique thing. I can’t think of other artists who have this digital memorial in the way that Leonard Bernstein will do,” Slattery said.

Urquhart said Bernstein, whose Facebook page has some 320,000 followers, was happy to spend time with fans after concerts “sometimes to the chagrin of his hosts. He would stay for an hour, or an hour and a half to interact with them.” One memory already submitted comes from Matt Walter in Los Angeles, who recalled his nine-year-old self seeing his mother’s grief at hearing the news of Bernstein’s death at age 72.

“I felt a strange and unsettling loss, like my own grandfather had died, without even knowing who the man was,” Walter wrote. “Later on in life, I listened to Leonard’s recordings, read his biographies, watched his Young People’s concerts and lectures, and came to know and love him almost like he was a friend.”

The project and the centennial celebration also aim to introduce Bernstein to people born after his death.

“There is a whole generation of people who didn’t know Bernstein personally, or who never had the opportunity to hear him conduct, but their lives were affected by him even after he passed away,” Urquhart said. – Reuters

Clearing mining misconceptions

August 30, 2017 | 12:04 am

By Lysander N. Castillo

After the rejection of Gina Lopez as the Department of Environment and Natural Resources secretary, the mining industry seems to remain a controversial sector, if President Rodrigo Duterte’s second State of the Nation Address (SONA) is any indication. In that SONA, the environment agenda of the administration appears to be focused on mining, as President Duterte minced no words in hurling criticisms against certain mining operations perceived to be destroying the environment along with the livelihood of farmers living in the nearby communities.

Clearing mining misconceptions

What is striking in that portion of the speech, however, is the clear reference to a television show hosted by a popular broadcaster and aired by a local network owned by the family of the former DENR secretary. Indeed, our notion of what mining is, and how the activity is done in the Philippines, is largely influenced by what comes out in the media. Sadly, the media space, whether traditional or social, is dominated by anti-mining sentiments that often blur the truth behind scientific data or pieces of information. Of course, any campaign must appeal to its audience in order to be effective. It is therefore imperative that the receiving public must be circumspect of messages conveyed especially as regards mining.

In analyzing information, it is always prudent to check on the credentials and credibility of the person painting the picture so as to arrive at a sound judgment. In the case of mining, an impeccable source will be Dr. Carlos A. Arcilla, a renowned geologist from the University of the Philippines National Institute of Geological Sciences (UP NIGS) with an extensive industry experience.

In order to provide sobriety in the rabid mining debates, Dr. Arcilla wrote a policy paper entitled: “Mining in the Philippines: Problems and Suggested Solutions,” published by the Stratbase-ADR Institute. In his paper, Dr. Arcilla outlined what he considers as misconceptions to mining.

UP TO 40% OF THE PHILIPPINES WILL BE MINED
Dr. Arcilla, in establishing the misconception, observes that: “One graphic shown consistently by anti-mining groups shows that 40% of Philippine land area will be mined … This gives avenues for comparison with places such as Nauru, where 75% of the area was mined for phosphate, leaving it a barren wasteland.” For the author, however, the proposition cannot be any farther from that truth based on the reasoning that: “What is not explained is that the exploration permits are subject to many no-go rules where mining cannot occur. For example, areas that are populated, that are agricultural, that are protected, or meet other standards, are automatically excluded from mining. The reality is this: the areas that have active mining tenements only comprise less than 3% of the total area of the country, and of these MPSA-covered areas, less than half a percent (0.3%) are being actively mined.”

THE PHILIPPINES IS ONE OF THE MOST MINERALIZED COUNTRIES IN THE WORLD
For Dr. Arcilla, this assumption “can give rise to the mistaken thinking that since we have mineral wealth, investors will be lining up to mine it.” It is pointed out by the author, however, that the huge amount of investments needed to utilize these minerals are not taken into account and that miners will not be willing to invest unless there are “stable and predictable rules governing the mining business.” This is considering that despite being located on the Pacific “Ring of Fire,” “the quality of our ore deposits is not better than other deposits elsewhere in the world,” according to Dr. Arcilla.

MINING CONTRIBUTES < 1% TO GDP AND EMPLOYMENT AND SO IT CAN BE STOPPED WITHOUT HARM TO THE COUNTRY
Dr. Arcilla concedes that, “mining contributes only < 1% to the GDP and employment, and it would seem logical to just cancel this segment of the industry because of the pollution it is causing.” This statistic must, however, be put it the proper perspective as Dr. Arcilla takes note of the fact that “the industry has not been allowed to grow, as there has been a moratorium on new mining permits for the last five years …” In the author’s opinion, one important aspect to consider is that “the 1% contribution arises because the GDP contributions from areas without mining are included in the averaging, thus diluting the contribution of mining. However, when we consider the economies of regions where mining is actually occurring (e.g., Caraga Administrative Region [CARAGA] and MIMAROPA Region [MIMAROPA], mining contributes at least 20% of the regional or local government unit’s GDP.”

SMALL-SCALE MINING IS SMALL
Dr. Arcilla simply rejects this notion, to wit:

“Small-scale mining is the biggest problem of mineral extraction in the Philippines. Small-scale mining refers to operations that, in theory, should not exceed 50,000 tons per year and should not use heavy equipment. Many small-scale mining operations do not have permits, although some can be obtained from local governments, which have varying degrees of discipline in the disposition of these permits. In actual scale, small-scale mining for gold comprises over 70% of the total gold production, greatly exceeding the combined output of all the large gold mines.”

From above, it is obvious that spectators to the whole mining saga must look beyond what is presented in the media to form an informed opinion. Doing this is a sure step to finding out the real problems facing our environment.

Atty. Lysander N. Castillo is the Secretary-General of Philippine Business for Environmental Stewardship (PBEST) and Environment Fellow at Stratbase ADR Institute.

BMW X4 xDrive20d M Sport

August 30, 2017 | 12:04 am

THE Germans invented the product segmentation game. Not content with having small/mid/large offerings, they went on to create slightly different models, filling in every perceived gap in their product range, or completely concocting new niches. BMW’s X4 is one result of this. The X4 sits between its two conventional SUV (well, SAV in BMW-speak, meaning Sport Activity Vehicle) siblings to play an even more athletic role — that of a Sport Activity Coupe. In the M Sport trim worn by the xDrive 20d variant that’s the subject of this review, the X4 proves it’s an all-wheel drive jock.

BMW X4 xDrive20d M Sport — *ALL PHOTOS: BRIAN M. AFUANG*

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• Despite sitting high off the pavement the X4 feels secure, leaning its body ever so minimally even during fast cornering, or when changing directions. No doubt the substantial 19-inch footwear and tuned suspension included in the M Sport package help in this regard.

• It responds to steering, throttle and braking inputs immediately, but remains a snap to drive smoothly. Credit the easy-to-modulate controls for this, as well as the feedback coming from them. Press on the controls hard and the X4 can accelerate briskly, as well as turn and stop abruptly. But be smooth and it rewards with corresponding finesse — similar to BMW’s proper coupes.

• Clatter, if at all, coming from the diesel mill under the hood is muffled at idle. At high revs engine notes entering the cabin are inoffensive, too, which is uncommon for a diesel. And, as expected from present BMW diesels, this abundance of grunt has somehow been combined with the ability to sip fuel.

• The eight-speed transmission — which sends the engine’s output to the xDrive all-wheel drive system — is as discreet. It rows through the gears sans any jerking, and is smart enough to choose which gear is best for any requirement.

• Thanks to 400Nm of torque, the X4 can speed up instantly no matter what gear the transmission happens to have chosen.

• The X4 feels solidly built; finding any part of it that squeaks or rattles or vibrates is an exercise in futility. Both outside and inside panel gaps are uniformly tight, testaments to excellent construction.

• Cabin is filled with well-crafted furniture. The leather wrapping on the heavily bolstered seats and other surfaces are pleasant to touch. The switchgear and various trim are finished in a way that these become not too shiny or slippery, but nor are these drab or rough. The graphics on the instruments and multimedia display have consistent color schemes, very legible text, and easily decipherable icons. The dashboard and door trim are lined with soft-touch material with differing textures.

• Special M interior items like the doorsill finisher, driver’s footrest, steering wheel, headliner, seat upholstery trim and various aluminum décor add sporty details, matching the body’s equally sport-oriented pieces — like the M aero kit.

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• Drooping “fastback” coupe roofline cuts headroom for backseat passengers. So BMW dropped the rear seat closer to the floor, leaving passengers with very little view of the outside. Narrow greenhouse does not help one bit.

• View of the rear from the driver’s seat isn’t any good either, with the high deck and sloping rear hatch conspiring to limit rear visibility to a mere few inches. Good thing the X is fitted with reversing camera/sensors.

• Same fastback silhouette may have worked for the longer BMW X6. But the truncated proportion of X4 only makes the car look too bulky at the bottom, too swoopy on top — odd, in short.

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Without doubt, the X4 is best experienced from the driver’s seat. — Brian M. Afuang

BLUFFER’S BOX

BMW X4 xDrive20d M Sport

Price: P4.640 million

Engine: 2.0-liter inline-four, diesel with twin-scroll turbocharger; 190hp @ 4,000rpm, 400Nm @ 1,750 — 2,500rpm

Transmission: Eight-speed automatic

Drivetrain: All-wheel drive

Wheels/Tires: 19 inches, staggered size

Key features: M aerodynamics package; sport suspension; M interior package (steering wheel, aluminum door sill finisher and other trim, driver’s footrest, headliner, seat trim); BMW ConnectedDrive driver assistance systems (head-up display, front-end collision warning, pedestrian alert, lane departure/change warning, navigation, intelligent voice assistant, surround view); multimedia system; selective beam headlights; smart entry including contactless tailgate opener; active cruise control with automatic engine start/stop

Alcantara Group’s 105-MW power plant to supply Zamboanga City exclusively

August 30, 2017 | 12:04 am

DAVAO CITY — The Alcantara Group is going ahead with its 105-megawatt (MW) power plant project in Zamboanga City, with the supply taken up by the Zamboanga City Electric Cooperative (Zamcelco) for the city’s exclusive use.

A Zamboanga City Electric Cooperative substation — *ZAMCELCO.COM.PH*

Alcantara Group President Nicasio I. Alcantara told BusinessWorld the dedicated power source will serve growing demand in the city, the economic center of western Mindanao.

“We are optimistic that the plant will serve as a catalyst in growing the economy of Zamboanga City,” Mr. Alcantara said.

The new plant, initially planned five years ago and now targeted for ground-breaking before the end of 2017, will cost about $300 million. It is expected to be completed within the next three years.

The 105-MW coal-fired plant will be backed up by the existing 100-MW diesel-fired facility of the Alsons Power Group’s Western Mindanao Power Corp.

The diesel power plant currently supplies about 50 MW to Zamcelco.

“We need to take advantage of the growing demand for power brought about by new investments,” Mr. Alcantara said.

He added that the group is confident that Zamcelco, which has been operating at a loss, will eventually be able to settle its debts and improve its financial standing with enough power to distribute.

About two years ago, Zamcelco was proposed for privatization as its debt at that time hit about P1.3 billion.

However, two auctions failed after prospective bidders withdrew from the investment and management contract bidding. — Carmelito Q. Francisco

Huge field vies in Shell Davao active chess

August 30, 2017 | 12:04 am

THE Shell National Youth Active Chess Championships braces for a fierce two-day battle of wits when it holds the Southern Mindanao leg on Sept. 2-3 at SM City in Davao.

A full-packed field has marked all the stops of the annual tournament sponsored by Pilipinas Shell in Davao, being one of the spawning grounds of chess talents in the country.

Registration is on-going on a first-come, first-served basis with slots limited to 400. For details, contact tournament coordinator Alex Dinoy at 0922-828-8510. Registration forms can also be downloaded from www.shell.com.ph/shell_chess. Fee is pegged at P100.

Keen competition is seen all three divisions with the top two from the kiddies, juniors and seniors divisions gaining berths in the national finals slated Oct. 7-8.

The top female player from each category will also advance to the grand finals at SM Mall of Asia Arena in Pasay City.

The kiddies section features players aged seven to 12 (born between 2004 and 2009), the juniors for 13 to 16 years old (born between 2000 and 2003) and the seniors for 17 to 20 (born between 1996 and 1999) for boys and girls.

Twenty nine players have made it so far to the grand finals after three legs of the circuit sanctioned by the National Chess Federation of the Philippines.

Meanwhile, the five-stage regional circuit winds up on Sept. 16-17 in Cebu for the Visayas qualifier at SM City.

The milestone 25^th staging of the circuit is held to discover fresh talents, especially in the countryside, and develop them to become members of future national teams. It has produced top grandmasters, the foremost of which is current world no. 2 super GM Wesley So.

The event is backed by Shell V-Power, Shell Advance, Shell Rimula, Shell Helix, Shell Fuel Save, and Shell Card and held in partnership with SM Supermalls. It is open to all Filipinos, non-titled players who are bonafide students certified by their respective schools and registrars. Previous grand final winners are allowed to compete again in their respective categories provided they are still within the age limit.

Government fully awards T-bills

August 30, 2017 | 12:04 am

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Tuesday after the papers were met by strong demand amid liquidity in the market.

The Bureau of the Treasury raised P15 billion as planned via the T-bills as investors wanted to lend as much as P43.17 billion to the government or nearly three times the volume of the debt papers placed on the auction block.

The government awarded P6 billion worth of 91-day T-bills as programmed as total offers reached P20.867 billion, also more than three times the amount up for auction. These short-termed notes fetched an average rate of 2.143%, down 1.8 basis points (bps) from the 2.161% yield seen during the Aug. 14 auction.

Similarly, the Treasury was also able to raise the planned P5 billion under a 182-day term after total tenders reached P11.610 billion, more than two times the government’s offer. The papers’ average rate rose slightly to 2.592%, up 1.5 bps from the 2.577% fetched during the previous offering.

It also sold P4 billion worth of 364-day debt papers, which attracted some P11.229 billion in bids, nearly thrice the programmed offer. The notes fetched an average rate of 2.935%, down 1.1 bps from the 2.946% seen previously.

At the secondary market before Tuesday’s auction, the 91-day, 182-day and 364-day T-bills were quoted at 2.1148%, 2.9804% and 2.9210%, respectively.

Yields on the papers dropped as the market closed, with the three-month debt quoted at 2.1109%, the six-month T-bills fetching 2.5798%, and the one-year papers at 2.9073%.

National Treasurer Rosalia V. de Leon said they decided to make a full award of the debt instruments of offer on the back of a liquid market and investor preference for shorter-termed securities.

“[It was] full[y] award[ed], [due to] the liquid market… but other than that, they have a very strong bid,” she told reporters.

The National Treasurer said the strong appetite for instruments at the short end of the curve was driven by external factors, primarily the Jackson Hole Economic Policy Symposium in Wyoming last Friday.

US Federal Reserve chair Janet L. Yellen and European Central Bank president Mario Draghi gave speeches during last Friday’s symposium but did not drop hints on future policy directions, leaving investors with no leads as to when they would tweak rates.

“And also there has not been a lot of news lately so I think that is why the auction is, in terms of the bids, not really [high,]” the National Treasurer added.

Sought for comment, a bond trader said rates sought by banks were within market expectations amid demand for securities on the shorter end of the curve.

“It was pretty much expected. As seen in previous T-bills auctions, investors really like short term papers,” the trader said.

Asked what factors drove rates to move sideways, the trader said: “Uncertainty on future central bank policy decisions in September and next week’s inflation data,” the trader said.

The Philippine Statistics Authority is set to release August inflation data on Tuesday. The prices of widely used goods and services averaged at 3.1% as of July, still within the central bank’s 2-4% target.

The government plans to borrow up to P180 billion locally this quarter — P90 billion each of Treasury bills and Treasury bonds — steady from the previous quarter. It secured P150.602 billion from the sale of government-issued papers during the first quarter, lower than its P180-billion program.

DEBT MARKET REFORM
Meanwhile, in a statement on Tuesday, the Treasury outlined the features of the government’s planned debt market reform, which aims create more fund-raising platforms for the state and produce fresh money supply.

The Bangko Sentral ng Pilipinas, the Department of Finance, the Securities and Exchange Commission, and the Bureau of the Treasury will implement the initiatives announced last Friday, when they were presented at a workshop the Bankers Association of the Philippines, the Money Market Association of the Philippines, and other market participants and stakeholders.

“The proposed reforms are designed to increase efficiency and reduce the cost of dealing in government bonds, provide market incentives to increase levels of participation, introduce new products including hedging tools based on global standards, and reduce current levels of variability and uncertainty in the pricing of government bonds” it said.

Future reforms include a permanent hike in the volume of T-bills and the consolidation of Treasury bonds into six liquid tenors, namely two, three, five, seven, 10, and 20 years. The government is also looking to adopt common semi-annual coupon payment dates for its bonds.

Under the planned reforms, the government is also looking to designate market makers — or firms, like banks or brokerages, that will agree to buy or sell securities or other assets at all times to provide liquidity to markets — with concomitant obligations and privileges.

The reform package also includes the introduction of a GMRA-based repurchase market. GMRA or the Global Master Repurchase Agreement is a model legal agreement designed for parties transacting repos and is published by the International Capital Market Association.

The government will likewise consider putting up a self-regulatory organization for a possible “organized OTC (over-the-counter) market” for securities, the statement said, and implement regulatory reforms to support the adoption of market based and IOSCO-compliant pricing benchmarks. The IOSCO or International Organization of Securities Commissions develops and implements global standards for securities regulation.

“The reforms will be undertaken over an 18-month time frame upon formal launch with specific targets for regulatory and institutional milestones every six months,” the Treasury said. “All reforms will be implemented in a coordinated manner in the respective spheres of responsibility of each of the implementing partner government agencies.” — Janine Marie D. Soliman

Japan wakes up to North Korean missile warnings

August 30, 2017 | 12:04 am

TOKYO — Millions of Japanese awoke to ominous text messages Tuesday warning them to take cover as a North Korean missile flew overhead, with one train operator bluntly explaining its halted service as “Reason: Ballistic missile launch.”

Sirens blared out in northern communities that were on the flight path of the ballistic missile as it soared over Japanese territory for two minutes before crashing into the Pacific.

“Missile passing. Missile passing.” warned an official text message sent to people across the north of Japan.

“A short time ago, a missile apparently passed above this area.”

“If you find suspicious objects, please don’t go near them and immediately call police or firefighters.”

“Please take cover in secure buildings or underground.”

North Korea’s launch towards neighboring Japan — a key US ally and Korea’s former colonial overlord — marked a major escalation by Pyongyang amid tensions over its weapons ambitions.

And for the first time in the most recent round of weaponized brinkmanship from the North, it brought real worries to people in Japan.

Morning commuters in northernmost Hokkaido were greeted by warning signs at train stations — bringing many rail services to a halt.

At one metro station in Sapporo, a major city of nearly two million, passengers were warned there would be delays.

“All lines are experiencing disruption,” said one sign. “Reason: Ballistic missile launch.”

Commuters took the government messages to heart.

“Some passengers came down to take cover in a couple of subway stations,” a Sapporo subway spokesman told AFP.

Others had little choice but to carry on with their usual schedule, including the crews aboard some 15 fishing vessels that had already left port off southern Hokkaido in an area under the missile’s path.

“I was surprised that it went above our area. This has never happened before,” Hiroyuki Iwafune, an official at the local fishery co-op, told AFP.

“I was worried. Everyone felt the same. But what can you do? Hide? But where?”

“We called those who were at sea. But then they said, ‘Even with this (warning), what are we supposed to do?’” Mr. Iwafune added.

‘VERY DANGEROUS’
In Tokyo, more than 700 kilometers (435 miles) south of the missile’s flight path, some train services were temporarily halted.

“Currently, a North Korean missile is flying above Japan,” said announcements at Tokyo stations handling bullet trains, minutes after the launch.

“It is very dangerous. Please take cover at the waiting areas or inside the trains.”

Yoshiaki Nakane, a retired government worker, said he feared Pyongyang’s provocative launch would aggravate already tense US-North Korea relations.

“North Korea repeatedly launches missiles and don’t seem to take any warnings seriously,” the 68-year-old said.

“I’m hoping that the United States will not react too strongly to it and cause trouble. It would be Japan and South Korea that get damaged.”

At a US military base in Tokyo on Tuesday, Japan deployed a Patriot Advanced Capability-3 (PAC-3) missile defense system as part of a previously scheduled drill.

The last time a North Korean rocket overflew Japan was in 2009, when Pyongyang said it was satellite launch. Washington, Seoul and Tokyo believed it was a clandestine test of an intercontinental ballistic missile.

Japan has previously aired public service TV ads and held emergency drills — with schoolchildren ducking on the street, covering their heads and running for cover — to prepare for the ever-present threat from its erratic neighbor.

Tokyo university student Julia Kotake said she was scared that North Korean missile may strike Japan one day.

“But I don’t think there is anything that we could do,” the 18-year-old told AFP. — AFP

Security Bank prepares P20-B LTNCD offering

August 30, 2017 | 12:03 am

SECURITY BANK Corp. (Security Bank) is planning to raise P20 billion in fresh funds through the issuance of long-term negotiable certificates of time deposits (LTNCD), with the offer still subject to regulatory approvals.

In a disclosure to the local bourse on Tuesday, the country’s sixth largest bank in asset terms announced it received the green light from its board of directors yesterday to issue P20 billion worth of LTNCDs.

The listed lender, however, did not disclose further details about the planned issuance.

Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold at the secondary market — thus, they are deemed “negotiable.”

Security Bank’s last LTNCD issuance was in August 2012 when the bank was able to successfully raise P5 billion from the instruments, more than its initial P3-billion offer.

Security Bank’s net profit reached P5.2 billion in the first half of the year, 8% up from the P4.9 billion recorded in the comparable period in 2016.

Similarly, its second quarter bottom line soared 32% to P2.43 billion from the P1.85 billion registered in the same period a year ago.

Shares in Security Bank lost P1.20 or 0.47% to close at P252.80 apiece on Tuesday. — Janine Marie D. Soliman

Lucio Co-led Puregold acquires B&W stores

August 30, 2017 | 12:03 am

PUREGOLD Price Club, Inc. on Tuesday said it acquired five B&W stores in Roxas City, Capiz, as the listed grocery operator continues to broaden its footprint in the Visayas region.

In a disclosure to the stock exchange, Puregold said the acquisition would bring its total store network in the Visayas region to 17, six of which are in the Panay province and 11 in the Negros province.

“This will give Puregold a total of 307 Puregold stores nationwide. Puregold expects the purchase to bolster its store presence in the Western Visayas region,” the company owned by billionaire Lucio L. Co said.

Puregold earned P2.49 billion in the first six months of 2017, up 9.8% growth from the P2.27 billion in the same period in 2016. Consolidated net margins was flat at 4.4% in the six months through June.

Consolidated net sales went up by an annual 10.8% — a shade above the upper end of its 8-10% guidance for the full year — to P56.6 billion in the first semester from P51 billion, fuelled by the 26 Puregold stores and two S&R Membership warehouse that opened in 2016.

Same-store sales inched up 4% for Puregold stores and 10% for S&R stores, driven by robust consumer demand and the country’s strong economic growth momentum.

At end-June, the retailer was operating 345 stores comprising 288 Puregold stores, 12 S&R membership shopping warehouse, 28 S&R New York Style outlets, nine NE Bodega Supermarkets and eight Budgetlane Supermarkets.

Shares in Puregold slipped 0.10% to close at P47.95 each on Tuesday. — A.B. Francia

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