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Vivienne Westwood’s clothes and jewels headed for auction

LONDON — Dresses, suits, shoes and jewelry from the personal collection of late British designer Vivienne Westwood will go under the hammer this month in an auction aimed at raising funds for charity.

More than 200 lots are being offered by Christie’s in London for the two-part “Vivienne Westwood: The Personal Collection” auction, made up of a live sale on June 25 and an online auction running June 14-28.

Ms. Westwood, one of British fashion’s biggest names, died in December 2022, aged 81. Her collaborator and widower Andreas Kronthaler has selected looks spanning some 40 years for the auction, with the earliest from Ms. Westwood’s Autumn-Winter 1983-1984 collection.

“These are the things that she chose to wear herself throughout the last 40 years of her life,” Adrian Hume-Sayer, head of sale for the auction, told Reuters at a press preview on Thursday.

“It’s very personal… These are the things you can see her on her bike, riding around London, press interviews, end of the catwalk… just conducting her day-to-day life. But she also lived… as she spoke. And so unlike many people… in her position she wore things repeatedly. She had favorites.”

Ms. Westwood, whose name was synonymous with 1970s punk rebellion, was also known for her activism. Her T-shirts bore slogans against fossil fuel-driven climate change and pollution, as well as her support for WikiLeaks founder Julian Assange.

In addition to clothes and accessories, a set of enlarged prints of a pack of playing cards Ms. Westwood designed in 2017 — focusing on issues such as climate change and inequality — are also being offered for sale with an estimate of £30,000 – £50,000 ($38,292 – $63,820).

Proceeds from the auction will go towards causes and charities Ms. Westwood supported — her own Vivienne Foundation, Greenpeace, Amnesty International and Médecins Sans Frontières, Christie’s said.

An exhibition of the lots will be open to the public at Christie’s London from Friday until June 24. — Reuters

From northwest to east China, parched and baking regions grapple with drought

REUTERS

BEIJING — Weeks of scarce rainfall in parts of China, coupled with sweltering heat, has brought drought to several provinces, prompting alerts and actions from authorities to minimize impacts on agriculture, and water and energy supplies.

Temperatures this week are forecast to scale record highs in parts of China as countries across Asia brace themselves for another summer of extreme weather.

China’s Water Resources Ministry this week launched emergency responses to manage drought on in Gansu, Shaanxi, Shanxi, Henan and Shandong provinces, indicating various regions in the country spanning the northwest to the east are facing parched and scorching conditions.

With dwindling precipitation since May in areas around the Yellow River Basin, in combination with the onset of searing temperatures this month, drought is threatening cultivated land that were being prepared to be sown as well as sown crops, Xinhua reported.

The harsh weather conditions will feature until the end of this week, with drought expected to worsen, the official media said.

In some parts of Hebei, Henan and Shandong provinces, temperatures could reach 44 degrees Celsius (111.2 degrees Fahrenheit), potentially breaking historical records for the month of June, state broadcaster CCTV said.

Surface temperatures could hit 70 degrees Celsius in some localities including in Shanxi and Shaanxi, it added. The emergency management ministry has alerted affected regions including northwestern Shaanxi, northern Hebei and Shanxi, eastern Anhui and Shandong as well as central Henan to protect water and food production.

China’s national forecaster predicted continuous heat wave conditions and warned about the need to prepare for emergency power supplies as well as fire prevention in forest areas, the People’s Daily reported.

Electricity demand typically soars in high temperatures as people crank up the air-conditioning to stay cool.

Rain, not heat, is the threat in southern China. Coastal Fujian’s provincial observatory raised a warning for wet weather and potential disasters after forecasting heavy rainfall until Saturday. — Reuters

Trends in fleet management: Technology, sustainability, and safety solutions for future success

Image by jcomp on Freepik

Over recent years, fleet leasing has grown in popularity due to the convenience it grants to businesses and government agencies alike. With its ability to solve parking challenges in urban areas, access the latest technologies, and be cost-effective, the automotive leasing market has grown in value to more than $25 billion in 2023 and is estimated to register a compounded annual growth rate of 6% from 2024 to 2032, according to consulting firm Global Market Insights.

Alongside the rise in fleet leasing as an option for companies, several trends have emerged in fleet management solutions driven by technological advancements and shifting market demands.

One of the new practices gaining traction in the past months is the use of telematic systems in fleet management solutions. Telematic systems typically refer to mechanisms that combine telecommunications and information processing.

However, in fleet management, telematics can help overcome operational challenges by tracking vehicle location, monitoring vehicle performance, analyzing driver behavior, and facilitating communication through the global positioning system (GPS). This data helps fleet managers optimize routes, improve fuel efficiency, enhance safety, and streamline maintenance schedules.

Fleet management software Wialon indicated on its website that telematic systems are about to receive an upgrade with the emergence of artificial intelligence (AI). The developers suggest that generative AI will revolutionize telematics platforms and provide tailored responses to fleet owners, managers, and dispatchers about their vehicles.

Another trend to look out for in fleet management for 2024 is the strong push towards sustainability with more fleets adopting electric vehicles and hybrids. With the Biden administration and the European Union implementing regulations encouraging the purchasing of EVs and prohibiting the sale of gas vehicles in the near future, companies are gradually transitioning to green fleets in an effort to reduce greenhouse gas emissions and combat climate change.

Several big companies have already started incorporating electric vehicles into their fleets. Delivery giant Amazon partnered with Rivian to integrate 100,000 electric delivery vehicles to their fleet by 2030. Car rental company Hertz also announced in 2021 an initial order of 100,000 electric vehicles from Teslas signaling a shift to sustainable transportation solutions in the industry.

A greater focus on safety features such as collision avoidance systems, driver monitoring, and in-cab video systems has also become trendy in 2024. Fleet management companies have prioritized driver safety to help reduce the risk of accidents and improve their brand reputation.

“The benefits of using advanced safety features in fleet management are significant. By reducing the risk of accidents, companies can protect their drivers and cargo, minimize downtime and repair costs, and maintain a positive reputation for safety,” Volpis, a fleet software management developer, noted on their website.

As these trends of new telematics systems, car models, and safety features continue to revolutionize fleet management, the need to upskill technicians becomes increasingly more important. To ensure that these trends become the new norm, companies have realized that technicians must be trained to handle new technologies and EV maintenance is driven by the industry’s need to reduce repair costs and improve service quality​.

The fleet management industry has grown to be a favorable solution for businesses seeking flexibility and efficiency in managing their vehicle fleets. As fleet management evolves with trends focused on technology, sustainability, and safety, companies that embrace and invest in these developments are well-positioned to achieve operational excellence, cost-efficiency, and environmental stewardship in the years to come. — Jomarc Angelo M. Corpuz

EVAP, CCPIT-Auto to cooperate for EV industry

Electric Vehicle Association of the Philippines (EVAP) Chairman Rommel Juan (second from right) shakes hands with China Council for the Promotion of International Trade Automotive Sub-Council (CCPIT-Auto) Assistant Chairman James Chai at the recent signing of a memorandum of understanding. With them are CCPIT-Auto’s Zhao Yang (left) and EVAP Chairman Emeritus Ferdinand Raquelsantos. — PHOTO FROM EVAP

THE ELECTRIC VEHICLE Association of the Philippines (EVAP) and the China Council for the Promotion of International Trade Automotive Sub-Council (CCPIT-Auto) have signed a memorandum of understanding (MoU) to establish a strategic international partnership.

EVAP Chairman Rommel Juan and CCPIT-Auto Assistant Chairman James Chai formalized the agreement, with EVAP Chairman Emeritus Ferdinand Raquelsantos witnessing the event. The MoU aims to foster collaboration between the Philippines and China in the electric vehicle (EV) industry, encompassing the entire value chain. The signing ceremony took place during the China Auto Chongqing Summit, held last June 6 to 8 in Chongqing, China.

This landmark partnership seeks to leverage the strengths and capabilities of both organizations to accelerate the growth and adoption of electric vehicles. By combining resources and expertise, EVAP and CCPIT-Auto are committed to advancing innovation, technology transfer, and market development in the EV sector.

Chairman Rommel Juan expressed his enthusiasm for the partnership, stating, “This MoU marks a significant milestone for EVAP and the Philippine EV industry. Our collaboration with CCPIT-Auto will open new avenues for knowledge-sharing, investment opportunities, and the development of sustainable transportation solutions.”

Assistant Chairman James Chai echoed these sentiments, highlighting the mutual benefits of the agreement. “China and the Philippines share a common vision for the future of mobility. Through this MoU, we aim to create a robust platform for cooperation that will drive the electric vehicle industry forward, benefiting both nations and contributing to global sustainability goals.”

The MoU outlines several key areas of cooperation: Technology exchange and innovation — facilitating the exchange of technological advancements and best practices in EV manufacturing, battery technology, and charging infrastructure; investment and market development — promoting joint ventures, investments, and market expansion initiatives to enhance the competitiveness of the EV industry in both countries; policy advocacy and support — collaborating on policy recommendations to support the growth of the EV sector and address regulatory challenges; training and capacity-building — organizing training programs, workshops, and seminars to enhance the skills and knowledge of professionals in the EV industry.

Yields mixed on Fed, US inflation reports

YIELDS on government securities (GS) were mixed last week following the Federal Reserve’s latest policy hints and the release of US consumer and producer inflation data.

GS yields, which move opposite to prices, inched down by an average of 0.77 basis point (bp) week on week, based on the PHP Bloomberg Valuation Service Reference Rates as of June 14 published on the Philippine Dealing System’s website.

At the short end, yields on the 91-, 182-, and 364-day Treasury bills went down by 3.69 bps, 3.09 bps, and 0.36 bp week on week to 5.6669%, 5.9694%, and 6.0778%, respectively.

At the belly, yield movements were mixed. The rates of the three-, four-, and five-year Treasury bonds (T-bonds) dropped by 0.3 bp (to 6.3388%), 0.58 bp (6.3934%), and 0.47 bp (6.4517%), respectively. Meanwhile, the two- and seven-year T-bonds saw their yields climb by 0.58 bp and 0.59 bp to 6.2876% and 6.5704%, respectively.

At the long end of the curve, yields on the 20- and 25-year T-bonds dropped by 1.14 bps (to 6.814%) and 0.61 bp (6.808%), respectively, while the 10-year paper rose by 0.57 bp to fetch 6.7004% on Friday.

Total GS volume traded reached P28.55 billion on Friday, higher than the P14 billion seen on June 7.

“Local yields initially saw some sell-off [last] week in reaction to the strong nonfarm payrolls in the US. Sentiment improved in the latter part of the week after the release of key data and the latest Federal Open Market Committee meeting result,” Alessandra P. Araullo, chief investment officer at ATRAM Trust Corp., said in a Viber message.

The lower-than-expected US inflation prints and the Fed’s policy comments at the end of their two-day review spurred market optimism towards the end of the week, Ms. Araullo said.

GS rates moved sideways to down due to the Fed’s cautious easing outlook, Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., likewise said in a Viber message.

The US central bank on Wednesday kept its benchmark overnight interest rate in the current 5.25%-5.5% range, where it has been since last July, Reuters reported. Fed officials pushed out the start of rate cuts to perhaps as late as December, with policy makers projecting only a single quarter-percentage-point reduction for this year.

The Labor department’s Bureau of Labor Statistics said the producer price index (PPI) for final demand decreased 0.2% in May. That was the biggest drop in the PPI since October and followed an unrevised 0.5% rise in April. Economists had forecast the PPI nudging up 0.1%.

In the 12 months through May, the PPI gained 2.2% after rising 2.3% in April.

The data followed Wednesday’s cooler-than-expected consumer price index (CPI) report. US consumer prices were unchanged in May from April, against market expectations of a 0.1% rise.

The CPI rose at an annual rate of 3.4%, still well above the Fed’s target of 2%.

At home, investors weighed comments from Finance Secretary Ralph G. Recto that the Bangko Sentral ng Pilipinas (BSP) could cut its key interest rate after the Fed begins its policy easing, Ms. Araullo added.

“These factors combined ultimately caused yields to move sideways week on week, with only the front-end bonds being the heavily favored,” she said.

For this week, the leading catalyst for the market activity would be the 15-year bond auction on Tuesday, Ms. Araullo said.

“Investors will try to gauge if the buying momentum will be sustained given that the issuance is a longer-term bond. If decent demand for the bond can be seen, then we may see some follow through buying,” she said.

“Another factor that we will also closely look at is the regular monetary policy meeting by the BSP Monetary Board. The meeting will take place on June 27. Investors will be looking for more concrete guidance from the BSP governor on when the first rate cut for the year will be and their outlook on inflation,” Ms. Araullo said.

GS yields may continue moving sideways this week as investors are expected to stay on the sidelines before the BSP’s next policy meeting, where they expect no adjustments in rates, Mr. Ravelas likewise said.

Anticipation for the release of the Bureau of the Treasury’s borrowing plan for next quarter could also drive market activity this week, Ms. Araullo added.

“This will allow players to reposition accordingly as more bond supply comes in the market,” she said. — Lourdes O. Pilar with Reuters

Adult immunization as a smart investment

PHILIPPINE STAR/ MIGUEL DE GUZMAN

An aging population compounded by the threat of vaccine-preventable diseases and their link to chronic diseases are compelling reasons to maximize efforts to vaccinate the adult population.

Speaking during the Health Connect media forum, the Adult Immunization Committee of the Philippine Society for Microbiology and Infectious Diseases (PSMID) co-chair Dr. Faith Villanueva revealed that adults comprise nearly 70% of the country’s total population, a large proportion of whom are in the workforce, providing for their families and essentially driving the economy.

However, Dr. Villanueva explained, the protection provided by childhood and adolescent vaccines and natural immunity derived from getting sick with infections weaken with age, making adults susceptible to various infectious diseases, including vaccine-preventable diseases. She noted that the link between infectious diseases and chronic diseases is well-established.

Individuals with chronic diseases such as diabetes, heart and lung conditions, chronic kidney failure, and other chronic conditions that weaken the immune system are at increased risk for infectious diseases. The misuse and overuse of antibiotics have also contributed to the problem of antimicrobial resistance in the country, she added.

Of the top 11 leading causes of sickness and death in the country in 2021 and 2022, four are infectious diseases, namely pneumonia, chronic lower respiratory diseases, pulmonary tuberculosis, and COVID-19, citing data from the Philippine Statistics Authority (PSA). She also pointed out that the top causes of death in the country — ischemic heart diseases, cancers, cerebrovascular diseases, and hypertensive diseases — are almost always associated with infections.

A new study by the UK-based Office of Health Economics (OHE) shows that investing in adult immunization can pay huge dividends in terms of health and socioeconomic benefits.

Commissioned by the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA), the study reviewed published evidence on the burden of influenza, pneumococcal disease, herpes zoster, and respiratory syncytial virus (RSV) in adults, the health, and healthcare systems of Australia, Brazil, France, Germany, Italy, Japan, Poland, South Africa, Thailand, and the United States. It then utilized health economic modelling to estimate the benefit-cost ratios and net monetary benefits associated with adult immunization programs in the 10 countries.

The study found that adult vaccines against the four aforementioned infectious diseases can return up to 19 times their initial investment to society, when their significant benefits beyond the healthcare system are monetized. This is the equivalent of billions of dollars in net monetary benefits to society, or more concretely, up to $4,637 (P265,378) for one individual’s full vaccination course. The study pointed out that these results are based on mostly conservative estimation methods and inputs are proportionate with returns observed in childhood immunization programs, which are widely recognized as some of the most cost-effective interventions available to healthcare systems.

The study also uncovered significant evidence for the value of adult immunization across the three overarching domains of vaccine value. In terms of value for population health, evidence shows that adult immunization is highly effective in preventing diseases, their sequelae (complications or aftereffects), and mortality, particularly in older adults and those with chronic health conditions.

In terms of value for healthcare systems, the study found that adult immunization programs are highly cost-effective and can result in net cost savings for healthcare systems. It noted that recent studies have highlighted that these programs not only offer health benefits but also yield financial gains by averting hospital inpatient and emergency care.

In terms of value for society, the study found that expanding adult immunization programs and coverage can lead to substantial productivity gains by individuals and their caregivers and economic benefits for society. Additionally, adult immunization programs can contribute to health and economic equity within countries, particularly benefiting vulnerable populations and underserved communities.

The study also showed that many broader elements, for example societal-economic elements such as productivity value, are currently underrepresented in academic literature.

The study made three key recommendations. First, adopt a prevention-first mindset and provide robust funding for adult vaccination programs. It urged healthcare systems to invest in strategies to cope with unprecedented and growing demand. Prevention must be at the heart of such strategies, and robust adult immunization programs are a fundamental component of effective prevention, the study stated.

Second, implement and optimize adult immunization programs as part of a life course immunization approach to address the projected rise in the burden of vaccine-preventable diseases. The study stressed that expanding access to a broader adult population can generate more value and higher net cost savings for healthcare systems and society. Adult immunization programs also present a great opportunity to help our societies age well and sustainably long into the future — and deliver an excellent return on investment in the process.

Third, expand and develop the evidence base for the value of adult immunization programs to address significant gaps in evidence regarding the broader elements of the value of these programs. Further research is needed to close these knowledge gaps, particularly in middle- and lower-income countries. Doing so is vital for informed decision-making and targeted policy interventions that aim to optimize the value of adult immunization programs.

 

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.

Italian prosecutors probing supply chain of around a dozen fashion brands, says source

LONDON — Prosecutors in Milan are investigating the supply chain of around a dozen more fashion brands, a person with knowledge of the matter said, after a unit of France’s LVMH in Italy was placed under court administration in a worker exploitation probe.

On Monday last week, a Milan court appointed a commissioner to run an LVMH-owned maker of Dior-branded handbags after an investigation into four of its suppliers based in the surroundings of Italy’s fashion capital uncovered illegal working conditions for staff.

On-site inspections and checks on electricity usage data led prosecutors to allege workers were employed for extended hours, working often into the night and during holidays. Some of the staff slept where they worked, had no regular contracts, with two having illegally immigrated into Italy.

This is the third such decision this year by the Milan court in charge of pre-emptive measures, which in April took similar steps in relation to a company owned by Giorgio Armani due to accusations the fashion group was “culpably failing” to properly oversee its suppliers. Armani Group said at the time it had always sought to “minimize abuses in the supply chain.”

LVMH on Monday declined to comment on the court’s decision.

Milan prosecutors and Italian police are investigating further small manufacturers that supply around a dozen other brands, the person told Reuters, declining to provide additional details because the information is confidential.

The appointment of a special commissioner is intended to give the fashion brands’ subsidiaries time to fix problems in their supply chain while continuing to operate.

Neither LVMH nor Armani are under investigation, while the suppliers targeted by the probe face accusations of worker exploitation, copies of the court decisions seen by Reuters showed.

‘MADE IN ITALY’
Milan prosecutors have been investigating for the past decade recruitment firms that allegedly illegally employed workers, evading taxes, as well as welfare and pension contributions, to slash the cost of the services they supplied.

The probes traditionally targeted sectors such as logistics, transportation and cleaning services, where workers were supplied by firms that sprung up and were wound down every couple of years.

The focus then shifted onto the fashion sector, where probes have highlighted similar problems this year.

Italy accounts for 50% to 55% of the global luxury goods production, consultancy Bain calculated, with thousands of small manufacturers supplying big brands and allowing them to sport the prized “Made in Italy” label on their goods.

The latest Milan investigation has shown a small manufacturer was able to charge Dior as little as 53 euros ($57) to make a handbag, which the fashion house then sold in shops at €2,600.

Under Italian law, brands outsourcing production are responsible for carrying out adequate checks on suppliers.

In the past, the measures taken by Italian magistrates in relation to worker exploitation probes concerned only the suppliers who mistreated workers.

However, Milan prosecutors have been able to make use of a provision in the law that was originally designed to deal with companies infiltrated by the Mob.

These companies would be placed under court, or judicial, administration through the appointment of special commissioners to run them. — Reuters

G7 leaders launch initiative for global food security

REUTERS

BARI, Italy — Group of Seven (G7) leaders have pledged to step up efforts against global malnutrition, according to a draft statement on Friday that noted Russia’s invasion of Ukraine had “aggravated” the world’s food problems.

The G7 Apulia Food Systems Initiative (AFSI) — named after the Southern Italian region hosting the leaders’ summit — will aim to “overcome structural barriers to food security and nutrition,” according to the draft.

The initiative will focus on low-income countries and support projects in Africa, one of the top priorities under Italy’s rotating G7 presidency this year.

Prime Minister Giorgia Meloni announced a flagship Italian plan to help Africa earlier this year and has repeatedly said that support for the continent is essential to address the root cause of illegal migration to Europe.

The Western powers also committed to work together to “improve the fiscal space for food security” including by reducing borrowing costs for poorer nations via mechanisms such as debt swaps.

Debt-for-nature swaps are financial instruments through which a developing country’s debt is cut in return for protecting vital ecosystems.

The AFSI initiative, whose details will be agreed by G7 development ministers in the coming months, drew criticism from African agricultural groups who said they had not been consulted.

“It is missing family farmers organizations that have not been involved even though small-scale producers will be key to its success,” according to Ibrahima Coulibaly, President of the West African Network of Peasants and Agricultural Producers.

“And it’s missing a plan to ensure that the finance raised gets to family farmers and supports a shift to more diverse and nature friendly approaches which are key to adaptation. The G7 urgently needs to fill these gaps,” he added. — Reuters

PLDT shares dip despite positive developments

WIKIMEDIA COMMONS/PATRICKROQUE01

SHARES in PLDT Inc. fell last week despite finalizing the $1-billion data center sale and planning to accelerate fifth-generation (5G) adoption in low-income markets.

Data from the Philippine Stock Exchange (PSE) showed the Pangilinan-led company ranking 13th in value turnover with P295.23-million worth of 206,830 shares exchanging hands from June 10 to 14.

Financial markets were closed on June 12, in observance of Independence Day.

The telco giant’s shares closed at P1,420 apiece on Friday, dipping by 2.7% from its P1,460 close a week earlier.

Year to date, the stock grew by 11%.

Aniceto K. Pangan, equity trader at Diversified Securities, Inc., said that the downtrend in the stock’s price movement was mainly due to the unexpectedly strong job report data in the US.

Given this, it may further delay the decrease in lending rates until next year, which will keep high lending rates in place and restrain global economic activity.

The US economy created more jobs in May and annual wage growth picked up, highlighting the resilience of the labor market and reducing the likelihood of the US Federal Reserve cutting rates in September, Reuters reported.

Reuters report added that the unemployment rate ticked up to 4% from 3.9% in April, a symbolic threshold below which the jobless rate had previously held for 27 straight months.

Back home, the Bangko Sentral ng Pilipinas said earlier this month that it might cut its policy rates before the US Fed despite the peso’s volatility.

The central bank’s Monetary Board maintained its policy rate steady at a 17-year high of 6.5%, hiking borrowing costs by a cumulative of 450 basis points from May 2022 to October 2023.

Last week, the Pangilinan-led telco said it is moving forward with the sale of 49% of its data center business to a foreign company for over $1 billion.

The company is in discussions to sell up to 49% of its data center business, ePLDT, Inc., to Japan’s Nippon Telegraph and Telephone (NTT), with its data center valued at $1 billion.

PLDT Chairman and Chief Executive Officer Manuel V. Pangilinan said that the company is in discussions with the final bidder and has agreed on the valuation.

Given this development, the company may no longer pursue its planned real estate investment trust (REIT) listing for ePLDT.

Mr. Pangilinan previously said that its data center unit might consider a REIT listing if negotiations with a foreign entity for its data center sale would not push through.

“The sale of data center for PLDT will definitely be a positive step in sustaining the growth as this will be utilized for the payment of maturing debts and lessen the burden of PLDT in its debt exposure,” Mr. Pangan said in a Viber message.

He added that the launch of low-cost phones with 5G technology will boost revenue by targeting the affordable sector of society where demand is high.

Last week, PLDT officials also discussed that they would focus on the low-cost market by introducing new products tailored to customers on a tight budget.

Mr. Pangilinan said that the telco giant is introducing thousands of entry-level phones with the capability to connect to 5G.

In the first quarter, PLDT’s attributable net income reached P9.82 billion from P9.02 billion in the same period in 2023, up by 9%.

Meanwhile, consolidated revenues grew by 3.6%, reaching P54.22 billion from P52.36 billion in the first quarter of 2023.

Mr. Pangan said that earnings will continue growing in the second quarter, and the full-year growth momentum is expected to be sustained.

“Immediate support [level] is P1,400 while immediate resistance [level] is P1,480,” he said.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Abigail Marie P. Yraola

PSEi member stocks performed — June 14, 2024

Here’s a quick glance at how PSEi stocks fared on Friday, June 14, 2024.

How minimum wages compared across regions in May

(After accounting for inflation)

Inflation-adjusted wages for May were 17.3% to 24.5% lower than the latest daily minimum wages across the regions in the country. In peso terms, real wages were  P73.49 to P113.90 lower than the current daily minimum wages set by the Regional Tripartite Wages and Productivity Board.

How minimum wages compared across regions in May

Peso may move sideways as market awaits economic data

BW FILE PHOTO

THE PESO could trade sideways against the dollar this week as the market awaits the release of local and US data for catalysts.

The local unit closed at P58.65 per dollar on Friday, weakening by seven centavos from its P58.58 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, the peso declined by six centavos from its P58.52 finish on June 7.

The peso declined on Friday as the dollar strengthened amid easing expectations of a rate cut from the US Federal Reserve this year following cautious signals from policy makers, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

However, the weakness was slightly tempered by inflows ahead of the long weekend, Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

The Federal Reserve held interest rates steady on Wednesday and pushed out the start of rate cuts to perhaps as late as December as policy makers sketched out their view of an economy that remains virtually unchanged across its major dimensions for years to come, Reuters reported.

With growth and unemployment lodged at levels better than the US central bank considers sustainable in the long run, Fed Chair Jerome H. Powell said policy makers were content to leave rates where they are until the economy sends a clear signal that something else is needed — through either a more convincing decline in price pressures or a jump in the unemployment rate.

So far, Mr. Powell noted in a press conference after the end of a two-day policy meeting, inflation had fallen without a major blow to the economy, and he said there was no reason to think that can’t go on.

The result is the Fed accepting a slow expected decline in inflation back towards its 2% target, with the central bank’s preferred inflation measure — the personal consumption expenditures price index — virtually unchanged at the end of this year from its current level and the number of rate cuts held to a single quarter-percentage-point reduction.

Those rate reductions are projected to gather pace next year, with Mr. Powell deferring on the timing.

Inflation data published hours before the release of the policy statement and updated projections showed the consumer price index rose not at all on a month-to-month basis in May, causing some analysts to argue the latest projections were already “stale.”

Mr. Powell himself said the decision about the rate path was a “close call” for many policy makers, and that to some degree the Fed had merely traded an earlier start to rate reductions this year by tacking an additional anticipated cut onto 2025.

Still, he called the decision to start policy easing “consequential,” and the drop in expectations for this year completes a broad swing in sentiment from just six months ago when policy makers in their December 2023 forecasts envisioned an imminent kickoff to three years of steady rate reductions.

Under the current projections, absent a surprise in upcoming inflation or jobs data, the cuts would likely not begin until December, moving the Fed’s decision out of the Nov. 5 US presidential election cycle.

The policy statement issued on Wednesday combined an acknowledgement of “modest further progress” on inflation in recent months with a restatement of language that rate reductions won’t be appropriate until officials have “gained greater confidence” that price pressures will continue to ease.

The Fed raised rates aggressively in 2022 and 2023 to curb inflation that had surged to a 40-year high in the aftermath of the COVID-19 pandemic.

For this week, the market will monitor the release of the US retail sales report and Philippine remittances data, Mr. Roces said.

Policy comments from Monetary Board members and Fed officials could also affect foreign exchange trading, Mr. Ricafort added.

The Bangko Sentral ng Pilipinas (BSP) will probably cut its policy rate after the Fed, which has signaled it may start easing as late as December, Finance Secretary Ralph G. Recto said last week.

Asked if the BSP would begin its easing cycle once the US central bank cuts rates, Mr. Recto, a member of the Monetary Board, said this was “highly probable.”

The Monetary Board has kept its benchmark rate steady at a 17-year high of 6.5% since October 2023.

BSP Governor Eli M. Remolona, Jr. has said that the earliest the central bank can begin cutting rates is in August, noting they do not need to wait for the Fed to begin its own easing cycle.

The Monetary Board’s next policy meeting is on June 27.

Mr. Ricafort expects the peso to move between P58.30 and P58.80 per dollar this week. — A.M.C. Sy with Reuters

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