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T-bill, bond rates may be mixed before BSP meet

BW FILE PHOTO

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week may end mixed ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting.

The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Tuesday, or P5 billion each in 91-, 182-, and 364-day papers.

On Wednesday, it will offer P30 billion in reissued 20-year T-bonds with a remaining life of 19 years and 11 months.

Rates of T-bills and T-bonds to be auctioned off this week could track the mixed movements in secondary market yields last week amid policy signals from local monetary authorities, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The market is also anticipating the next BSP rate-setting meeting on Thursday, June 27,” Mr. Ricafort added.

At the secondary market on Friday, yields on the 91-day and 364-day T-bills went up by 3.29 basis points (bps) and 1.18 bps week on week to end at 5.6998% and 6.0896%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website. Meanwhile, the 182-day paper’s rate went down by 2.31 bps to 5.9463%.

On the other hand, the 20-year bond’s yield rose by 1.76 bps week on week to 6.8316%.

The BSP is widely expected to maintain its policy stance for a sixth straight meeting on Thursday amid persistent risks to the inflation outlook and a weak peso, analysts said.

All 15 analysts in a BusinessWorld poll conducted last week expect the Monetary Board to maintain its target reverse repurchase rate at a 17-year high of 6.5% at its policy meeting on Thursday.

The reissued 20-year bonds on offer this week could see “weak” demand and fetch yields ranging from 6.8%-6.95%, which could lead to a partial award, a trader said in an e-mail.

“We expect most investors to remain cautious while awaiting BTr’s borrowing schedule for the next quarter,” the trader added.

Last week, the government raised P15 billion as planned from the T-bills it offered as total bids reached P40.282 billion, or almost thrice the amount on the auction block.

Broken down, the BTr borrowed P5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P17.18 billion. The average rate for the three-month paper inched down by 0.1 bp to 5.666% from the previous week. Accepted rates ranged from 5.645% to 5.674%.

The government likewise made a full P5-billion award of the 182-day securities, with bids reaching P12.56 billion. The average rate for the six-month T-bill stood at 5.914%, inching up by 0.6 bp, with accepted rates at 5.898% to 5.925%.

Lastly, the Treasury raised the planned P5 billion via the 364-day debt papers as demand for the tenor totaled P12.465 billion. The average rate of the one-year debt went up by 0.7 bp to 6.046%. Accepted yields were from 6.035% to 6.055%.

Meanwhile, the reissued 20-year bonds to be auctioned off on Tuesday were last offered on May 21, where the government raised just P22.717 billion out of the P30 billion placed on the auction block. The bonds were awarded at an average rate of 6.797%, 7.8 bps above the 6.875% coupon for the series.

The BTr wants to raise P180 billion from the domestic market this month, or P60 billion from T-bills and P120 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy

Seres you in September

Seres 7 — PHOTO BY KAP MACEDA AGUILA

Premium electric vehicles are coming from another Chinese marque

I THINK it’s safe to say that we’ve reached an inflection point in our country’s mobility journey as it pertains to the brands we allow into our consideration set.

It’s already a bewildering selection as it is. Japanese, Korean, American, and European marques have long been competing for our attention and budgets. But the influx of so many Chinese brands in recent memory has been unprecedented.

Now, another challenger enters the ring. Formerly known as SF Motors and/or Chongqing Jinkang New Energy Automobile, Seres Automobile is a “new energy” vehicle specialist. The company itself falls under the larger Seres Group (itself formerly called the Chongqing Sokon Industry Group). If you’re not familiar with the term “new energy vehicles,” it’s China’s term for electrified vehicles, and even a cursory glance at the local industry reveals a growing selection of electrified mobility options from our neighbor from the north.

Of course, it is impossible to talk about China without addressing the ever-growing elephant in the room — namely, the contentious relationship of our two countries, especially when viewed through the prism of territory. “Let the customers ultimately decide if they would like to purchase a car from China. We are, after all, an open market economy, and more choices benefit the consumers and increase competition among industry players. Even top players like Toyota needed to dig deep in their product portfolio and introduce models from their Daihatsu line in order to compete with the rise of more affordable options from China,” recently wrote our occasional contributor Chris Yu — an industry veteran who now works for the United Asia Automotive Group, Inc., specifically looking after the Beijing-headquartered BAIC brand as its brand head and general manager.

Mr. Yu raised another valid point: “After World War II, there were many sentiments against both German and Japanese vehicles, because of the two nations’ involvement in the war. This clearly did not last long, as both countries now enjoy a robust automobile manufacturing industry and brands from both countries top the list in desirable automotive marques. Whether or not Chinese brands will share a similar trajectory in the Philippines is completely up to Filipino consumers.”

This is quite a long-winded introduction to my column this week, but I think it’s a needed discourse that cannot be glossed over — particularly since “mischief” between Philippine and Chinese troops in the West Philippine Sea is seemingly escalating. To say that this has no bearing on our choices and biases would be an egregious mistake. A Filipino executive for a Chinese brand here lamented how he believed sales would be a lot better without the intramurals. I agree. At the end of the day, buyers veritably “vote” with their pesos.

While technically debuting at the recent Manila International Auto Show, Seres Auto (here represented by heavy equipment distributor QSJ Motors Philippines, Inc.) did a more focused brand launch in Pasay City recently. It was a more thorough presentation that delved into the company’s roots that traces back all the way to 1986. The “technology-driven car manufacturer” counts itself among the top 500 companies in China and today is an “A-share listed company,” with new energy vehicles comprising its core business. It also is said to employ over 20,000 employees.

In a release, the partners tout the deal as “(marking) a pivotal moment in the Philippine automotive industry. This partnership leverages Seres’ expertise in electric vehicle manufacturing and QSJ Motors’ robust distribution capabilities to introduce a range of intelligent electric vehicles to the Philippines. This move is set to promote sustainable transportation solutions and support the country’s environmental goals.”

Even as a handful of models were unveiled at the brand launch, these were basically teases. We were told by Jona Chiang of QSJ Motors that pricing for the first batch of nameplates — the Seres 7 three-row SUV, Seres 5 EV, Seres SF (Saker Falcon) 5, and Seres 5 — will be available by September this year when these are officially launched. The company would also be ready to talk about dealerships by then, along with specific plans and aspirations for Seres, she promised.

What we could communicate though is that Seres is not playing in the traditional mass- to mid-market price point or even value proposition. Rather, the brand is introducing “intelligent luxury electric vehicles that combine innovation, sustainability, and unparalleled driving experiences.”

Of course, we will hold off judgment until we actually get behind the wheel of one of these models. Seres is saying, however, that many of its promises are anchored on its so-called MF platform that is said to introduce an industry-first “comprehensive safety system… covering over 150 safety scenarios (and boasting) more than 200 safety features (plus) 40 safety technologies.” Seres maintained that “this comprehensive approach significantly elevates the safety standards of the driving experience.”

But perhaps the sexiest value proposition, particularly for new energy vehicle fence-sitters, is range extender technology. Just what is it? “This technology extends the driving range of the electric vehicle by incorporating an additional generator that charges the battery when it runs low, thereby significantly enhancing the overall driving range. With this technology, (the user) gets the convenience of using electric power for city driving while also having the choice of traditional fuel for longer trips. This range extender technology ensures that drivers can travel longer distances without the anxiety of depleting the battery,” Seres reported.

Speaking of anxiety, here’s wishing our spat with our China deescalates soon. Everyone will surely be better served by peace than provocations.

For more information on Seres, e-mail info@seres.com.ph or sales@seres.com.ph. Its official Facebook account is Seres Motor Philippines; its website is www.seres.com.ph.

Farmers back 4-6 months of tariff review

REUTERS

By Adrian H. Halili, Reporter

A FOUR-TO-SIX-MONTH review of tariffs imposed on agricultural goods would promise relief for domestic producers against tariffs lowered potentially until 2028, farmers said.

Federation of Free Farmers (FFF) National Manager Raul Q. Montemayor said the more frequent review proposal shortens the review period from the one year the FFF originally proposed for the 15% tariff on rice.

“A review could result in cutting short the implementation period and reverting to 35% or even 50% for shipments exceeding the Minimum Access Volume quota,” Mr. Montemayor said via Viber.

Executive Order (EO) No. 62, signed by President Ferdinand R. Marcos, Jr. last week, formally approved the reduced tariff on rice imports to 15% from 35%, until 2028. It also covers lower tariffs on pork, corn, and mechanically deboned meat.

The EO also called for a review of the tariff schedule every four months to adjust to changes in global prices and supply.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said last week that he had proposed a shorter period for tariff reviews, following consultations.

In May, the Board of the National Economic and Development Authority approved a plan to lower tariffs on industrial and farm goods, including the further reduction of rice import tariffs.

Jayson H. Cainglet, executive director of the Samahang Industriya ng Agrikultura said that there should be a mechanism for the retraction of the executive order.

“We propose benchmarks for revoking the EO if the price of rice does not fall, and when the farmgate price falls,” Mr. Cainglet said via Viber.

He added that about 500,000 farmers would be affected by the EO due to the decline in farmgate prices of palay, or unmilled rice.

“The executive order was not clear; it did not state what (actions) would be done after a review,” Danilo V. Fausto, president of the Philippine Chamber of Agriculture and Food, Inc. said by phone.

He added that rice farmers could face a potential P10 per kilogram decline in farmgate prices should import tariffs be lowered.

“The traders and rice millers will have to buy (palay or unmilled rice) at a lower price to compete with imported rice,” Mr. Fausto said.

The average farmgate price for palay rose 30.2% year on year to an average of P24.81 per kilo in May, according to the Philippine Statistics Authority.

Mr. Montemayor said issues raised in previous consultations with the Tariff Commission have remained unaddressed.

“In the past, we carried the burden of proving that the tariffs were not effective; I think, it should be the proponents of the tariff cut who should prove that their prescription was effective,” he added.

Roy S. Kempis, a retired professor at the Pampanga State Agricultural University, said the more frequent tariff reviews would make them more responsive to changes in global prices and supply.

“A periodic review and eventual adjustments of rates can adapt to these changes. This makes the tariff regime more realistically set based on how sensitive the changes are in world prices and supply,” Mr. Kempis said via Viber.

The Philippines is expected to import about 4.6 million metric tons (MMT) this year in the face of the lowered tariffs and increased consumption, the US Department of Agriculture reported.

The Philippines has imported 2.23 MMT of rice as of June 13, according to the Bureau of Plant Industry.

Model Naomi Campbell gets her own exhibition at London’s V&A museum

LONDON — Naomi Campbell brings her stylish looks and runway walk to London’s V&A in a new exhibition that the museum says is the first of its kind dedicated to a model.

“Naomi: In Fashion” looks at the career of one of fashion’s most recognizable faces through key looks she has modeled as well as her influence and activism.

The exhibition, which opened to the public on Saturday, features glamorous frocks, towering heels, as well as a display of Ms. Campbell’s fashion photos and magazine covers, curated by former British Vogue editor Edward Enninful.

“There’s been so many exhibitions about fashion designers and fashion photographers, but the model is often left out of the story,” Sonnet Stanfill, senior curator of fashion at the V&A, told Reuters on Wednesday last week.

“And Naomi Campbell’s remarkable 40-year career is really… proving that she’s an exemplar in the field, because not only is she working with the best designers and photographers, magazines in the industry, but also she uses her platform to spotlight the careers of emerging creatives as well.”

Ms. Campbell, 54, began her career as a teenager and has modelled for fashion heavyweights like Versace, Chanel, Prada, and Dolce & Gabbana, among many others. She has also championed African designers.

She was the first Black model to appear on the covers of French Vogue and Time magazine and was also the first Black model on the cover of American Vogue’s key September issue.

Outfits on display include a mix of famous fashion names such as the late Gianni Versace and Azzedine Alaïa as well as African designers including Kenneth Ize and Thebe Magugu.

The sparkling Dolce & Gabbana dress Naomi Campbell wore on her last day of community service at a New York garbage depot — after pleading guilty to reckless assault for throwing a phone at her housekeeper during a dispute over a pair of jeans — as well as the blue platform shoes in which she fell on the catwalk at Vivienne Westwood’s Autumn-Winter 1993 show also feature.

The exhibition, which runs until April 6, 2025, includes written and audio commentary from Ms. Campbell reminiscing over key moments of her career, as well as a makeshift catwalk for those wanting to imitate her runway walk. — Reuters

The mighty dollar

PRECONDO-UNSPLASH

“Russians lined up to purchase US dollars after the Moscow Exchange enforced an immediate suspension of trading in dollars and euros in response to fresh US sanctions,” Newsweek reported. Russia’s central bank announced on June 12 that exchange trading and settlements of deliverable instruments in US dollars and euros were suspended effective June 13 “due to the introduction of restrictive measures by the United States against the Moscow Exchange Group.” It added that over-the-counter trading data would be used to set official exchange rates for the currencies.

This retaliatory reaction of Russia follows the US Treasury’s expansion of an executive order issued by President Joe Biden in December that allows Washington to directly sanction foreign banks facilitating significant transactions for Russia. The US threatened to block banks that conduct business with firms that support Russia’s defense industry from its financial system, Newsweek explains.

It could be with sardonic humor, and some sadistic triumph that some pro-West readers took to the news of the Russian common folk still believing in the US dollar, despite their leaders now fighting bared teeth against America in the Russian grab of Ukraine’s territories.

With the rapid escalation of Russia’s invasion of Ukraine, the US and a large coalition of states, including the EU, Canada, and the UK, among others, had agreed on Feb. 26, 2022, to ban select Russian banks from the Society for Worldwide Interbank Financial Telecommunications (SWIFT) international payment messaging. The SWIFT system in over 200 countries facilitates the exchange of interbank messages containing secure payment and transfer information for settling international transactions (foreignpolicy.com).

Professor Peter C. Earle of the American Institute for Economic Research (AIER) sees the “Weaponizing of the dollar” as an unfair practice, detrimental to the operative concept of the US dollar as an unbiased global settlement and reserve system. “Shortly after its invasion of Ukraine, Russia had most of its links to the dollar-based trading network SWIFT severed, as well as seeing some $300 billion in US dollar reserves frozen. Those sanctions — unwittingly, I believe — provided a cautionary tale even to current and long-time allies of the United States. The risk that getting on the wrong side of a US policy position could result in a nation’s being effectively shut out of global commerce” (aier.org, June 19, 2023).

Further, Earle describes the “mismanagement” of the US central bank. “In the early phase of the COVID pandemic, the Fed unleashed a multi-trillion dollar deluge in which rates of money creation briefly exceeded 25% annualized at one point. They then watched as inflation broke out, wasting precious months on inaction while calling the rise in the general price level ‘transitory.’”

What the US does, and what happens in its economy, affects the world that trades and transacts in the Mighty Dollar.

The Observer Research Foundation (ORF) of India points out that “while the dollar-led international monetary system has morphed over the years to accommodate the changing dynamics of globalization, it continues to feed a cycle of inter-country inequality and amplifies business cycle fluctuations in developing and emerging economies. Particularly during times of monetary tightening, currency values collapse against the greenback and capital flees emerging economies’ shores. Asian governments are increasingly taking action to stop the fall of their currencies that have been battered this year by the mighty US dollar” (asia.nikkei.com, May 13).

The threat of losing the ability to do business in an interconnected world has further pushed countries to consider a shift from the dollar, as well as develop alternatives to US-controlled clearing and communication systems like the Clearing House Interbank Payments System (CHIPS) and SWIFT. Prof. Earle of the AIER cites sizeable trade deals like that between China and Brazil, denominated and settled in the renminbi (RMB) and the real (BRL) instead of, as it customarily has been, the US dollar. India and Malaysia settled trades in rupees, and France has reported successfully executing a natural gas trade with China settled in renminbi. Some 19 nations settled trades with India in rupee, like Russia, Sri Lanka, and Bangladesh, including the United Kingdom, Germany, New Zealand, and Israel. Last year the government of Iraq made the use of the US dollar illegal. The United Arab Emirates currency, the dirham, is seeing an increase in use throughout the Middle East.

But perhaps the most direct challenge to the mighty dollar for global transactions is from the “BRICS plus” coalition, an economic club that started with Brazil, Russia, India, China, and South Africa, and which expanded with the inclusion of Iran, the United Arab Emirates, Ethiopia, and Egypt this January.

After its 2009 Yekaterinburg summit, the BRICS nations announced the need for a new global reserve currency, which would have to be “diverse, stable and predictable.” Although the statement that was released did not directly criticize the perceived “dominance” of the US dollar — something that Russia had criticized in the past — it did spark a fall in the value of the dollar against other major currencies, the AIER paper said.

During the fifth BRICS summit in 2013 in Durban, the member countries agreed to create a global financial institution, the $100-billion New Development Bank to cooperate with the western-dominated IMF and World Bank. At the 2015 BRICS summit in Russia, ministers from the BRICS states initiated consultations for a payment system that would be an alternative to the SWIFT system. A major development in the 2022 summit was the creation of a new, basket-type reserve currency. The currency, which is challenging US dollar, combines BRICS currencies and is backed by precious metals.

“For countries seeking to mitigate the economic risks of intensifying US-China competition, joining BRICS is an attempt to straddle some of those tensions. In Southeast Asia, many nations depend economically on trade with China while also simultaneously welcoming the security presence and investment Washington provides. But BRICS membership is also a way of signaling increasing frustration with the US-led international order and key institutions that remain firmly in the control of Western powers, like the World Bank and International Monetary Fund” (bloomberg.com, Aug. 23, 2022).

But it is China and Russia who are keen to expand BRICS into a coalition to counter the US. Brazil and India, however, are reluctant, an analysis in The Diplomat says (Aug. 8, 2023). “The current turmoil in international politics has direct consequences for all the countries in the group, which are expressed in varied ways of intra- and extra-BRICS competition. In addition to the growing rivalry between China and India over border disputes and a military standoff on the so-called Line of Actual Control, as well as India’s concerns about China’s projection in its immediate surroundings, the BRICS are also dealing with the consequences and economic repercussions of the Russian invasion of Ukraine. For the first time, Russian President Vladimir Putin was not able to attend the summit last year, due to the possibility of being arrested since South Africa is party to the International Criminal Court. The ICC has issued a warrant for President Vladimir Putin’s arrest, due to allegations of war crimes in Ukraine.”

BRICS’ economic arm, the New Development Bank (NDB), is also facing complications from the Russia-Ukraine war. As of March 2022, Russia has had all trading within the NDB frozen, representing a total exposure of $1.8 billion to entities domiciled in Russia, The Diplomat noted. Political motivations of the bigger countries contradict the noble declarations of equality and fairness in this economic coalition. Although BRICS Plus presents a platform for developing countries, enabling them to increase their representation in global governance, this expansion process is also part of China’s broader economic and geopolitical interests, The Diplomat says. “Beijing’s objective in defending the expansion of the BRICS would be the formation of a coalition of countries in opposition to the G-7 bloc and its attempts to curb China’s global growth.”

So, the same sins of politicizing the global economic system and weaponizing the clearing and exchange transactions for foreign trade will predictably be committed (knowingly or unwittingly, let’s say) by whoever dominates the BRICS or any alternate system to the Mighty Dollar. The Mighty Yuan, perhaps?

The Chinese currency’s use surged to a record amount in the first quarter of 2023. Foreign exchange swaps referencing the yuan, in fact, saw their second largest surge ever in March owing to growing use of the currency. The dollar’s share in Chinese trade fell from 83% to 47% between 2010 and this year.

But Prof. Earle of the AERI says that “The idea that the death of the dollar is either imminent or inevitable is highly unrealistic, however. None of the currently proposed replacements are viable for several reasons:

“The Chinese yuan or renminbi is, at present, completely inappropriate owing to its closed capital account (capital controls) and the fact that the yuan is pegged to the dollar and manipulated in value to positively impact its exports.

“Any nation or group of nations wanting to capture the role of global reserve currency would additionally have to be willing (and able) to run current account deficits and have a wide variety of debt issues outstanding — IOUs called Treasury bills, notes, and bonds — in US dollars still trusted as the ‘safe haven’ for the end-user, the investor/saver.”

Thus do the Russian common folk still trust the US dollar.

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Ayala Land Premier breaks ground for LEED-registered Park Villas project

AYALA Land Premier, Inc. said it has broken ground for its 51-storey exclusive residential project Park Villas in Makati City.

In a statement on June 21, the property developer said Park Villas would feature 45 villas, with each villa occupying the entire floor and located inside the Ayala Triangle Gardens.

Park Villas is LEED (Leadership in Energy and Environmental Design)-registered, reflecting Ayala Land Premier and the Tagle Group’s commitment to environmental stewardship, it said. “This aligns with their vision to create extraordinary living spaces that harmonize with sustainable principles.”

“Together with the new Mandarin Hotel, the Park Central Towers and now, the iconic Park Villas, we are committed to setting a new benchmark in contemporary living and sustainability,” Ayala Land Premier President Joseph Carmichael Z. Jugo said in a statement.

The company said the villas, spanning 610 square meters fitted with floor-to-ceiling windows that showcase the view of Ayala Triangle Gardens and the Makati City Skyline to the northwest and Urdaneta Village and the Bonifacio Global City Skyline to the southeast.

Among the amenities are thermal protective glass, strong data support, expansive service areas, a lounge, pool complex and a 2,400 sq.m wellness facility.

Park Villas pushes the boundaries of urban living while honoring the city’s legacy, said Marc Louie Tagle, president and chief executive officer at the Tagle Group of Companies.

“It embodies the shared vision and uncompromising commitment of Ayala Land Premier and the Tagle Group, bringing a new high-rise that will continue the Makati redevelopment story,” he said in the same statement.

Ayala Land Premiere said the design of Park Villas was credited to Skidmore, Owings & Merrill for the architecture and Yabu Pushelberg for the interiors.

The company said Park Villas, Ayala Land Premier’s signature development, touts to be a landmark addition to the Makati skyline.

“This iconic project is posed to contribute significantly to the city’s narrative of urban sophistication and progress and mark a new chapter in the city’s vibrant history,” he said. — ARAI

Mercedes-Benz PHL adds EQE SUV to pure-electric choices

Flanking a newly revealed Mercedes-Benz EQE SUV are (left) Inchcape Philippines Finance Director Vincent Mansilla and Inchcape Philippines GM for Mercedes-Benz Passenger Cars Rhomel Franco. — PHOTO BY KAP MACEDA AGUILA

IC STAR AUTOMOTIVE, INC., official distributor of Mercedes-Benz vehicles in the Philippines, recently debuted the Mercedes-Benz EQE SUV at its dealership in Bonifacio Global City, Taguig.

Aside from “further solidifying (the) Mercedes-Benz commitment to electrification, innovation and sustainability,” the release of the EQE SUV is a testament to the increased readiness or openness of the market to the format.

The SUV version of the EQE (whose sedan iteration has already been launched here) is the latest electric import from IC Star Automotive, under the aegis of Inchcape Philippines. The newest model joins the EQA, EQB, EQS, and the aforementioned EQE, and carries the signature look of its electric siblings, while purveying a “perfect blend of style, comfort, and sustainability,” insisted the distributor.

Based on WLTP-standardized testing, Mercedes-Benz reported a single-charge range of 536km to 628km — which could promise a drive from Manila to Baguio and back. Output numbers are 292hp and 565Nm, made possible by the EQE SUV’s lithium-ion battery with a 96-kWh capacity, and which accepts charging of up to 170kW. The sole 350+ AMG Line variant carries an introductory price of P7.19 million.

The all-new EQE SUV’s sleek, aerodynamic lines are not merely for aesthetics but play a crucial role in enhancing the vehicle’s efficiency and performance, reported Mercedes-Benz. Fitted onto the EQE SUV are 21-inch AMG multi-spoke light-alloy wheels, and seamless door handles and black panel grille with three-dimensional star patterns. Fringing the grille are advanced headlamps — so-called Digital Light with Ultra Range high beam, featuring the “lighting strike band” of the EQ series. The LED taillights, on the other hand, are designed in the shape of a curved illuminated 3D helix. These are topped off with an illuminated strip.

Inside, the EQE SUV is said to offer ample legroom and headroom for both driver and passengers.

“The all-new EQE SUV boasts an elegant design complemented by cutting-edge technology seamlessly integrated to elevate (the) driving experience,” IC Star Automotive said in a release. The vehicle gets a 15-speaker Burmester 3D surround sound system dishing out up to 710W of sound, and Active Ambient Lighting allows for the customization of the light strips within.

On the dash is a large 56-inch “high-tech glass” called the MBUX Hyperscreen, which tucks in three displays within a curved glass surface. Mercedes-Benz said that the system, powered by advanced AI, “learns preferences and habits to provide tailored suggestions, transforming every drive into a highly personalized journey.” It is effectively the EQE’s brain — communicating “with all systems to optimize both performance and enjoyment.” Zero Layer feature “prioritizes essential information, minimizing distractions and ensuring that the most important data is always within easy reach.”

As for cargo capacity, with the rear seatbacks up, the EQE serves up 580 liters of space — growing to 1,675 liters with the seatbacks folded.

In an interview, IC Star Automotive Assistant Vice-President for Product and Training Benjie Bautista said, “For the past three or four years, I’ve seen the EV awareness growing, and with that awareness also comes the (sales growth) in electric vehicles.” EVs comprise some 15% of Mercedes-Benz Philippines sales, he revealed, and that share is projected to go up to 20% this year.

He added that the “vital thing” is the continued support of government, along with the expansion of charging infrastructure. “It can’t be not just situated in Metro Manila, but also to the north and south of it. And that’s why we are partnering with Shell e-Mobility to speed up the infrastructure rollout. Of course, this is all for our customers to enjoy a better driving experience, with our EVs — without range anxiety.” — Kap Maceda Aguila

PHL coffee imports seen falling 3.7% this year

ALFRED KENNEALLY-UNSPLASH

PHILIPPINE coffee imports are expected to fall 3.7% this year, according to the US Department of Agriculture (USDA).

In a report, the USDA estimates that imports of soluble coffee to the Philippines would amount to 6.3 million 60-kilogram bags, against 6.5 million bags in 2023.

The Philippines imports most of its coffee requirement as domestic production cannot meet demand. Philippine-grown coffee can service about 38% of market requirements.

Most imports are soluble or instant coffee.

The Philippines is the fourth-largest coffee importer after Japan, the US, and the European Union.

The USDA reported that its global coffee export estimate in 2024 was downgraded to 119.5 million bags following lower output from major coffee producers.

“Central America and Mexico are reduced to 12.9 million on reduced exportable supplies. Indonesia is down 700,000 bags to 4.3 million on lower output,” it said.

On the other hand, the USDA raised its export forecast for Vietnam to 29.1 million bags as farmers reported improved yields through better irrigation, mitigating the effects of drought and high temperatures.

The Philippines imports most of its coffee requirement from Vietnam.

It added that domestic consumption is expected to drop 1.8% to 6.95 million bags this year.

The global coffee production forecast this year was downgraded to 169.2 million bags, likewise, due to lower production from Central America, Mexico, and Indonesia.

“Central America and Mexico are reduced… to 16.4 million bags due to higher-than-anticipated incidents of coffee cherry borer insect infestation as well as coffee rust. Indonesia is revised to 8.2 million as drought conditions in Southern Sumatra lowered Robusta yields,” it said.

Philippine coffee production was estimated at 450 thousand 60 kilo bags, against the 475 thousand bags in 2023. — Adrian H. Halili

Banks seen to remain robust this quarter

BW FILE PHOTO

BANKS could continue to post strong performances this quarter after mostly recording higher earnings in the first three months of 2024, analysts said.

“So long as nonperforming loans remain manageable and loan growth continues to be stable, then second quarter earnings should still perform within or above market expectations,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The Philippine banking industry’s net profit rose by 2.95% to P92.107 billion in the first quarter from P89.47 billion in the same period last year, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.

“Macroeconomic indicators such as economic growth, inflation rates, and employment figures provided a backdrop for banks’ performance,” Mr. Limlingan said.

He added that lenders’ profitability on the first quarter was affected by high interest rates and changes in central bank policies.

He noted that Bank of the Philippine Islands (BPI) and China Banking Corp. (Chinabank) were top performers during the period, posting robust loan growth, improved asset quality, diversified revenue streams, and effective cost management.

BPI saw its net income grow by 25.8% year on year in the first quarter to P15.3 billion as higher revenues helped offset increases in loan loss provisions and operating expenses.

Meanwhile, Chinabank saw an 18% increase in its net profit to P5.9 billion in the same period on the back of robust core business growth.

For her part, First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message that banks could see easing margins in the coming months amid higher funding costs.

There is “competitive pressure to rise and prompt banks to seek bigger business volumes, lending and fee income,” she added.

Banks could also struggle in the third quarter due to elevated overhead costs, Ms. Ulang said.

Meanwhile, lenders that have invested in technology could see reduced costs, resulting in enhanced efficiency, she added.

Banks could offset elevated costs through trading income if the Bangko Sentral ng Pilipinas (BSP) implements a rate cut in the third quarter, Ms. Ulang said.

BSP Governor Eli M. Remolona, Jr. has said the central bank could begin its easing cycle with a 25-basis-point (bp) cut as early as the Monetary Board’s Aug. 15 meeting, and could slash borrowing costs once or twice within the second semester.

The BSP raised borrowing costs by a cumulative 450 bps from May 2022 to October 2023, bringing its key interest rate to a 17-year high of 6.5%. — Aaron Michael C. Sy

Top 5 in National Costume chosen at Bb. Pilipinas

MS. ABRA

THE BINIBINING Pilipinas pageant released its top five picks for its National Costume category after a fashion show at Quezon City’s New Frontier theater on June 11. The fashion show also served as the pageant’s preliminary round, where the candidates walked the runway in evening gowns.

The pageant’s winner will be sent to the Miss International and Miss Globe international pageants.

Binibining Pilipinas Charities, Inc., which operates the pageant, was founded by the world’s first Miss International Stella Marquez Araneta, the spouse of Araneta Group chair Jorge Araneta.

The top five candidates for the National Costume category — which gives them a boost in points for the Grand Coronation Night on July 7 at the Araneta Coliseum — are Myrea Caccam from Oriental Mindoro, Joyce Ann Garduque of Quezon Province, Monica Acuno from Laguna, Zianah Famy representing Cavite, and Myrna Esguerra, representing Abra.

The candidates provided their own voiceovers to describe their dresses, making it easier for viewers to understand their costumes.

Ms. Caccam said that her dress, a silver number with flared-out fins on her shoulders, represented Lake Naujan in her hometown, and was designed by Michael Jayzon Dela Cruz. “The skirt is a true work of art, crafted from recycled plastic bottles collected from the coastal area of Naujan. This innovative use of materials not only showcases the commitment to sustainability but also highlights the importance of protecting the environment,” she said.

Meanwhile, Misses Garduque and Acuno, from Quezon Province and Laguna, respectively, appeared back-to-back on the runway, as candidates No. 23 and 24.

Ms. Garduque said that her dress was a celebration of Quezon’s coconut crop, with the base fabric of the dress woven from coconut husks which are usually used to make sacks. The dress was designed by Roy Aquino and featured a headdress made from corn husks. “This is a testament to the creativity and resourcefulness of Quezon Province’s people, showcasing a beautiful blend of tradition and innovation,’ she said.

Meanwhile, Ms. Acuno, who hails from the town of Kalayaan, appeared in a neat and simple traje de mestiza designed by Patrick Isorena, complete with a tapis overskirt and bearing a basket of fruits and vegetables. “Growing up as a daughter of a farmer, I am honored to showcase the enduring legacy of strong Filipina women through my National Costume,” she said.

Ms. Famy of Cavite wore a dress with a bodice made from the traditional woven mat, the banig, designed by Karl Balao. The dress was designed to recall Cavite’s Kawayan Festival, which was why noisy kawayan (bamboo) tassels made up her skirt.

Ms. Esguerra was the last to appear on the runway (as candidate No. 40). Representing Abra, she wore a basket shaped like a terno with panels on the sides of the “skirt” made with indigenous textiles. The dress, designed by Richard Stranz, was meant to represent Dulimaman, a heroine from the tales of the Tinguian people of Abra. As a tribute to another strong woman, she dedicated the dress to her mother, a basket weaver and single mother of 13 children.

“It honors her remarkable journey and the cultural heritage she embodies. Mama, this one’s for you,” she said. — Joseph L. Garcia

Dengue Awareness Month

BRGFX-FREEPIK

There were 67 deaths due to dengue in the country from January to February alone, according to the Department of Health (DoH). With this number, it is crucial to put spotlight on the Dengue Awareness Month, held every June to highlight the importance of multi-sectoral collaboration among the government, civil society, and private sector in the prevention and control of dengue.

Dengue is a viral infection transmitted to humans through the bite of infected female mosquitoes, primarily the Aedes aegypti mosquito, which are active during daytime.

Most people with dengue have mild or no symptoms and will get better in one to two weeks, according to the World Health Organization (WHO). If symptoms occur, they usually begin four to 10 days after infection and last for two to seven days. Symptoms may include high fever (40°C), a severe headache, pain behind the eyes, muscle and joint pains, nausea, vomiting, swollen glands, and a rash.

According to the WHO, it’s important for people who develop dengue to rest; drink plenty of liquids; take acetaminophen (paracetamol) for pain; avoid non-steroidal anti-inflammatory drugs, like ibuprofen and aspirin; and watch for severe symptoms and seek medical care as soon as possible if such symptoms develop.

In rare cases, dengue can be severe and lead to death, the WHO warns. Individuals who are infected for a second time are at greater risk of severe dengue. Severe dengue symptoms often come after the fever has gone away. These include severe abdominal pain, persistent vomiting, rapid breathing, bleeding gums or nose, fatigue, restlessness, blood in their vomit or stool, severe thirst, pale and cold skin, and feeling weak. People with these severe symptoms should seek emergency treatment at the nearest hospital immediately.

Studies have shown that in the past 50 years, the number of reported cases of dengue fever increased more than 30 times, with transmissions mainly occurring in tropical regions that have warm and wet climates.

In addition to rapid population growth and frequent national travel that accelerate dengue fever transmission, climate change is also a potential contributor to the increased incidence of dengue fever and its geographical expansion, as global warming could create more favorable environments for mosquito breeding and the spread of the disease, according to a Brazilian study published in 2021.

The results of a 2023 modeling study indicate that climate change is expected to increase the risk of dengue fever transmission in tropical areas of South and Southeast Asia. Limiting greenhouse gas emissions could be crucial in reducing the transmission of dengue fever in the future, the study concluded.

A local study published in 2015 found that the level of dengue virus isolated and detected in Aedes aegypti mosquitoes in selected sites in Cebu City was higher during the dry season than in the wet season. On the other hand, the study showed that dengue transmission among people is higher during the wet season, most especially during the early months of the wet season.

A local study published in 2022 mirrors the findings of the 2021 Brazilian study, as it found that Aedes aegypti mosquito eggs survive longer in environments affected by global warming. In light of the study’s findings, the authors recommended that the DoH dengue prevention and control program, particularly the enhanced 4S strategy, be implemented year-round rather than just during the dengue epidemic wet season, with a particular focus in the Visayas and Mindanao.

4S stands for “Search and destroy” mosquito-breeding sites, employ “Self-protection measures” (i.e., wearing long pants and long-sleeved shirts, and daily use of mosquito repellent), “Seek early consultation,” and “Support fogging/spraying” only in hotspot areas where increase in cases is registered for two consecutive weeks to prevent an impending outbreak.

The authors also recommend the reduction of breeding sites, covering of water storage containers, and hygiene and sanitation around households as constant components of a community-based, integrated approach, combined with educational programs to increase knowledge and understanding of best practices. They also recommend the installation of pipelines for the water supply system in rural highlands to decrease potential breeding sites.

For individuals and families, there are effective ways to prevent dengue and control the mosquitoes that carry the dengue virus. Wear clothes that cover as much of your body as possible. Install or repair window and door screens in your house. Apply mosquito repellents and use mosquito coils and vaporizers, when appropriate.

It is also recommended to dispose of solid waste properly and remove artificial man-made habitats that can hold water. Cover, empty, and clean domestic water storage containers weekly. And apply appropriate insecticides to outdoor water storage containers.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP). PHAP represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that  affect Filipinos.

Stake sale deal, buybacks lift shares of Aboitiz Equity Ventures

By Andrea C. Abestano, Researcher

ABOITIZ EQUITY VENTURES, Inc. (AEV) shares rose last week, backed by a modest rally spurred by a share-sale agreement and consecutive share buybacks.

Data from the Philippine Stock Exchange (PSE) showed that from June 18 to 21, 11.79 billion shares worth P458.61 billion were exchanged on the trading floor.

The holding company’s stocks climbed 0.91% to P38.80 each on Friday from P38.45 on June 14. Year to date, the stock price has fallen by 13% from P44.60 on Dec. 29.

“AEV’s stock movements this week were largely driven by flows, with a notable modest rally in the days following the disclosure of its 50% stake sale,” Rastine Mackie D. Mercado, research director at China Bank Securities Corp., said in an e-mail.

On Monday last week, Aboitiz Equity Ventures disclosed a share sale deal with Ayala Land, Inc. (ALI). Ayala Land bought AEV and AboitizLand’s 50% interest in Cebu District Property Enterprise, Inc.

The transaction involved 18.1 million shares at P100 apiece and gave Ayala Land full ownership of Cebu District Property.

“We think the move aims to capitalize on an improving outlook for its property business,” Mr. Mercado said. He added that investors might view the stake sale as positive since AEV could use the proceeds to fund projects in the pipeline.

“[Despite] the initial positive sentiment, the market also perceived potential negative impacts on AEV’s future earnings from this divestiture, leading to mixed reactions from investors,” Mark Crismon V. Santarina, a trader at Globalinks Securities and Stocks, Inc. said in a Viber message.

“The divestiture may be strategic for resource reallocation but also raises questions about AEV’s long-term growth in the Visayas region,” he added.

AEV shares at P38.80 on Friday from P39.25 a day earlier, ending the stock’s short-term rally.

Mr. Santarina attributed the price volatility to investors’ concern about potential revenue losses from the Cebu District Property stake sale.

After the sale agreement, Aboitiz Equity Ventures held three consecutive share buybacks.

AEV used excess cash to buy 3.66 billion shares at P38.40 to P39.25 each. The company said in a separate disclosure on April 25 said the repurchase program aims to optimize the company’s market position.

Both analysts said these transactions positively influenced market sentiment on the stock last week.

“[Buybacks] typically indicate that the company has a strong balance sheet and expects future growth, thus positively influencing investor sentiment and providing support to the stock price amid market fluctuations,” Mr. Santarina said.

Mr. Mercado said “transactions related to its share buyback program may buoy investor sentiment as this reinforces confidence towards the stock given its first-quarter performance and positive business outlook over the balance of the year.”

For January to March, Aboitiz Equity’s net income attributable to its parent rose by 22.38% to P4.9 billion from a year earlier. Consolidated revenues fell by 8.98% to P69.1 billion.

Mr. Mercado pegged AEV’s support and resistance levels at P38.30 and P39.70, respectively.

“Immediate support level is anticipated around P35, given recent buyback activities bolstering investor confidence,” Mr. Santarina said. “The resistance level is expected near P42.”

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