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BSP securities fetch lower yields

BW FILE PHOTO

YIELDS on the central bank’s short-term securities ended lower on Friday, with strong demand seen for the two-month tenors.

The Bangko Sentral ng Pilipinas’ (BSP) bills fetched bids amounting to P153.009 billion on Friday, higher than the P130-billion offer but slightly below the P155.76 billion in tenders for the P190-billion volume auctioned off the week prior.

Still, the central bank awarded just P121.684 billion in securities as the one-month tenor was undersubscribed.

Broken down, tenders for the 28-day BSP bills reached P41.684 billion, lower than the P50 billion placed on the auction block and the P59.534 billion in bids for the P70-billion volume offered in the previous week. The central bank accepted all the submitted bids.

Banks asked for rates ranging from 5.645% to 5.85%, lower than the 5.78% to 5.86% margin seen a week earlier. This caused the average rate of the one-month securities to fall by 4.39 basis points (bps) to 5.7782% from 5.8221% previously.

Meanwhile, bids for the 56-day bills amounted to P111.325 billion, well above the P80-billion offering and the P96.226 billion in tenders for the P120-billion offer by the central bank a week ago. The BSP made a full P80-billion award of the two-month papers.

Accepted yields were from 5.6125% to 5.816%, lower than the 5.773% to 5.86% band seen a week prior. With this, the average rate of the 56-day securities declined by 8.59 basis points to 5.743% from 5.8289% logged in the previous auction.

The central bank uses the BSP securities and its term deposit facility to mop up excess liquidity from the financial system and to better guide market rates.

The BSP bills were calibrated to not overlap with tenors of the Treasury bills and term deposits also being offered weekly.

Earlier data from the central bank showed that around 50% of its market operations are done through the short-term BSP bills.

Short-term instruments offer more stability and predictability, the BSP has said. These are also considered high-quality liquid assets, giving banks more flexibility.

Central bank securities can also be traded in the secondary market. — Luisa Maria Jacinta C. Jocson

Prada brings Versace home to create Italian luxury contender

MILAN — Prada’s deal to buy Versace revives hopes for a “Made in Italy” luxury champion after many other family-founded brands ended up in French, Swiss, or US hands, and comes as many Italian groups are outperforming the struggling sector.

The $1.375-billion deal brings one of fashion’s best-known Italian labels back under Italian control after it was sold to US-listed Capri Holdings, then known as Michael Kors, for $2.15 billion including debt in 2018.

Despite Italy accounting for 50% to 55% of global personal luxury goods production, according to consultancy Bain’s estimates, the country lacks a group with a scale that matches up to French players such as LVMH and Gucci-owner Kering.

Milan-based Prada, controlled by designer Miuccia Prada and husband Patrizio Bertelli and listed in Hong Kong with a market capitalization of about €14 billion ($15 billion), is the largest Italian luxury fashion group by revenue.

But the group, which also includes the fast-growing Miu Miu label, has been a relative minnow in terms of stock market valuation compared with the likes of Louis Vuitton-owner LVMH.

The Versace deal comes after Andrea Guerra became Prada’s chief executive officer in 2023 to bridge a change in generation, with Lorenzo Bertelli, the son of the company’s main owners and its chief marketing officer, regarded as the heir apparent.

“Prada’s ambition to become a leading Italian luxury conglomerate is a significant move in a market that is dominated by French groups. It’s exactly what many Italians have been hoping for,” said Achim Berg, a fashion and luxury industry adviser.

The combined revenue of the five biggest Italian-owned listed luxury groups — Prada, Moncler, Ermenegildo Zegna, Brunello Cucinelli, and Ferragamo — is still well below Kering’s roughly €17 billion, even after a big fall in sales at the French group last year.

Company founder Brunello Cucinelli summed up the difference in approach on the two sides of the Alps in typically colorful fashion.

“Our esteemed French counterparts are great financiers,” he told the Milano Fashion Global Summit 2024 last October. “But we Italians regard our ‘tiny big’ companies as if they were our little children, so we want to look after them and hand them down to a next generation,” he added.

AMBITIOUS MOVE
While LVMH and Kering have swallowed many Italian brands, even the larger Italian groups have until now been comparatively reluctant to make big acquisitions.

“This acquisition represents Prada’s serious attempt to build a group — and a much more ambitious one compared to their past ventures with Helmut Lang and Jil Sander,” Berg said.

Prada’s chairman and co-owner Patrizio Bertelli defined the acquisition of those two brands — which were bought at the turn of the century and sold a few years later — as “strategic mistakes.” The group has since focused mainly on organic growth, with the exception of acquisitions of suppliers.

Both Prada and Versace have their roots in Milan and still have headquarters there, just four kilometers apart.

Milan-based Moncler, the mountain gear brand that was bought and revived by Italian entrepreneur and current main shareholder Remo Ruffini in 2003, has also shown some interest in dealmaking, buying Italian streetwear brand Stone Island in a €1.15-billion agreement in late 2020.

Moncler’s net cash position of €1.3 billion has fueled analyst talk of more deals, but the group has denied such speculation.

Jil Sander is now part of Italian entrepreneur Renzo Rosso’s OTB Group, which also includes brands such as Diesel and Maison Margiela. But with annual sales of €1.7 billion, it remains relatively small.

The big Paris-based groups, meanwhile, have continued to make forays into Italy, underscoring the challenge an enlarged Prada would face to compete with them.

In the latest deals, Kering bought a 30% stake in Italian maison Valentino in 2023, and LVMH last year helped to take Tod’s private and took a 10% stake in Moncler’s top shareholder.

In the longer term, eyes are on companies such as Milan-based Armani and Dolce & Gabbana, among the few in Italy that are still fully family-owned and unlisted.

Their ultimate fates could be decisive in any effort to create a true Italian powerhouse in global fashion. — Reuters

Chevron Philippines signs new lease deals for BLC-owned terminal sites

CHEVRON.COM

CHEVRON PHILIPPINES, INC. (CPI), a downstream oil company and marketer of the Caltex brand of fuels and lubricants, has renewed its lease agreements with Batangas Land Company, Inc. (BLC) for four properties that house its terminals.

The companies signed new lease contracts covering BLC-owned sites in San Pascual, Batangas; Lapu-Lapu, Cebu; San Fernando (Poro), La Union; and Sasa, Davao City, Chevron said in a statement on Friday.

“This lease renewal not only solidifies Chevron’s presence in the Philippines, but it also provides a solid foundation that allows Chevron to confidently invest in our growth and expansion,” said Yu Lee Toh, CPI’s vice-president for Asia Pacific sales.

In 2023, CPI and BLC signed a memorandum of understanding for the renewal of leases on the properties that host the oil company’s terminals serving the country’s fuel requirements.

“These four terminals that we are leasing from BLC in Batangas, Cebu, Sasa, and Poro serve as the backbone of our operations. This seal of renewed partnership enables CPI to continue serving our customers and ultimately providing for the growing energy needs of the country,” said CPI Chairman Billy Liu.

CPI is engaged in the importation of crude oil and natural gas and in the manufacture of transportation fuels, lubricants, petrochemicals, and additives.

“This ongoing relationship between Chevron and BLC is more than just a business transaction. It is proof of what can be achieved when both sectors unite with a shared vision, an example of how working together can create lasting impact,” said BLC President Lilia Arce.

BLC is a joint venture between CPI and the National Development Company, the government’s investment arm. — Sheldeen Joy Talavera

Playing God with tariffs

FREEPIK

“I’m telling you, these countries are calling us up, kissing my ass,” Donald Trump, US President, told his fellow Republicans at a dinner on Tuesday, April 2 (according to the Philippine Star on April 10).

What’s the crass “ass-licking” braggadocio all about?

At his inaugural address on Jan. 20, Trump pledged to “immediately begin the overhaul of our trade system to protect American workers and families. Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” he said (whitehouse.gov/, retrieved Feb. 4, 2025).

On April 2, Trump declared a national emergency to address what he described as a “large and persistent US trade deficit,” enabling him to invoke presidential powers in an emergency, to impose the initial 10% tariff on all imports to the US, and then the additional reciprocal tariffs based on the US trade deficits per country to be imposed starting April 9. (Politico, retrieved April 3, 2025).

These tariff-increase announcements prompted retaliation from trade partners and triggered a stock market crash. The Wall Street Journal pointed out that across April 3 and 4, US stocks lost $6.6 trillion in value, their largest two-day loss in history by a margin of $2.2 trillion. Of course, the tumble in the capital and financial markets frightened not only the 57 countries charged with increased tariffs, but the global market players as well as the small developing countries that wrongly, seemed unaffected.

Politico reported that Treasury Secretary Scott Bessent tried to change Trump’s mind about the tariffs, warning him that the stock market would continue to decline unless he changed course. On April 9, Trump turned 180 degrees and announced that reciprocal tariffs above the base 10%, which had gone into effect that morning, would be paused for 90 days for all countries except China. China’s minimum tariff rate was increased to 145%, while imports from all other countries were sustained at the 10% baseline tariff (Wall Street Journal, April 9). Other global tariffs on products like cars, steel, and aluminum remained in effect.

And indeed, the affected countries (some, at least), came calling on Trump to “kiss-ass,” and try to negotiate for solutions to their increased tariffs for trading with the US. Time Magazine (“Nothing Is Certain but Uncertainty: How the World Is Reacting to Trump’s Tariff Reversal,” April 11) describes “how countries around the world have begun responding to the whiplash”:

Bangladesh. The US is the biggest export market for Bangladesh, which had been hit hard by a 37% tariff. “We will continue to work with your administration in support of your trade agenda,” Interim leader Muhammad Yunus said.

Brazil. The US is among Brazil’s biggest trading partners, second only to China. Trump imposed a 25% tariff on steel — a key export for Brazil, and 10% on other products. Brazil will negotiate with the US on the increased tariffs, at the same time, the country plans to expand its trade partnerships with other countries.

Cambodia. Faced with a 49% “reciprocal” tariff, Cambodia offered to reduce its tariff on 19 categories of US imports from 35% to 5%. Last year, Cambodia exported $9.9 billion in goods to the US, around 38% of the country’s total exports.

European Union. The EU had voted in favor of retaliatory tariffs on $23 billion in goods in response to Trump’s previously announced 25% tariffs on steel and aluminum — which remain in effect. The EU faced a 20% “reciprocal” tariff — which is now a baseline 10% tariff during the pause — on top of the metals tariff and a separate 25% tariff on cars and car parts. “If negotiations are not satisfactory, our countermeasures will kick in,” EU President Ursula von der Leyen said.

Germany. Will be united with the stand of the EU.

Greece. Prime Minister Kyriakos Mitsotakis hopes for a “win-win” solution between the EU and the US, as Greece is a member of the EU. “(But) as far as Greece is concerned, we have a strategic partnership with the US. I have worked with President Trump before and I can work very well with him again addressing regional challenges,” he said.

India. Wants to move swiftly on a trade deal with the US, after Trump temporarily reduced a 27% “reciprocal” tariff on the country to 10%.

Ireland. As a member of the EU, Ireland hopes for a group negotiated solution to the Trump tariffs, but “direct bilateral engagement with the United States is one of my priorities,” Simon Harris, the Tánaiste or second-ranking government leader of Ireland said.

Italy. Economy Minister Giancarlo Giorgetti said, “Within the G7 all of us outside the US spoke to try to calm the situation and find a way to bring the Trump administration to the table and to a reasonable position.”

Japan. Ryosei Akazawa, Japan’s Minister for Economic Revitalization, said about the tariffs on Japan’s metals and automobiles, key exports for the country: “We continue to express our strong concerns and strongly request that they be reviewed.” Finance Minister Katsunobu Kato ruled out using Japan’s US Treasury holdings as a bargaining chip in negotiations with the US.

Lesotho. Hit by a 50% “reciprocal” US tariff, the textile industry is the biggest private employer in the country, with around 30,000 people — nearly half of whom produce apparel for American brands. Lesotho hopes to negotiate for lower tariffs.

Malaysia. Has been hit with a 24% “reciprocal” US tariff, along with other members of ASEAN, including Vietnam and Thailand, among others. The 10 ASEAN member states and Timor-Leste agreed not to retaliate against Trump’s tariffs, and will “find a pragmatic and mutually advantageous solution for ASEAN in a strategic and tactful manner.”

Poland. Prime Minister Donald Tusk of Poland, an EU member, said, “The reaction to the tariff war was predictable. The stock market earthquake from Japan through Europe to America must be survived without nervous decisions.

Saudi Arabia. Commerce Minister Majid bin Abdullah al-Qasabi spoke with his Chinese counterpart on Thursday about strengthening bilateral trade, according to a statement by the Chinese ministry. Saudi Arabia faced a 10% “reciprocal” tariff on exports to the US.

Singapore. Singapore’s Monetary Authority said that it is “ready to work constructively with all partners, including the United States.” Singapore was hit with a 10% “reciprocal” tariff.

South Africa. Faced a 31% “reciprocal” tariff, it previously said it had no plans to retaliate against the US and will instead seek negotiations.

South Korea. Trade envoy Cheong In-kyo met with US Trade Representative Jamieson Greer last week about lowering tariff rates on South Korea. The US had imposed a 26% “reciprocal” tariff plus 25% tariffs on the auto industry, a key export.

Spain. Spain is a member of the EU, which was subject to a 20% tariff on exports to the US before the pause. “Expanding the trade relations that we have with other countries, including a partner as important as China, does not go against anyone,” Spanish Agriculture Minister Luis Planas said.

Taiwan. The bulk of Taiwan’s trade surplus with the US is in its export of semiconductors, which accounts for around 40% of its total exports. Taiwan is willing to cut its tariff rate on US products from an average nominal rate of 6% to 0% to counter and lower the US 32% “reciprocal” tariff on Taiwan.

Thailand. As Thailand faced a 36% “reciprocal” tariff, Prime Minister Paetongtarn Shinawatra offered to increase imports of energy, aircraft and agricultural products from the US. Surplus American farm products would be processed in Thailand, and then re-exported as higher-value products.

United Arab Emirates. The UAE, who is one of the world’s top 10 oil producers, will consider a bilateral free-trade agreement with the EU after the 10% “reciprocal” tariff imposed by the US.

United Kingdom. The UK will continue to “coolly and calmly” approach negotiations with the US, a spokesperson for Downing Street said last week.

Vietnam. The two countries exchanged nearly $150 billion in goods last year. The US is the biggest export market for Vietnam. Trump claims that Vietnam had earlier offered to cut its tariff rates on US goods to 0%, but he said the offer was not enough.

But no ass-kissing, no begging to negotiate, for China.

US tariffs on China total 145% — the 125% rate announced last week on top of an existing 20% tariff. China “firmly opposes” the US tariffs and vows to continue with countermeasures. “There is no winner in a trade war, and that China does not want a trade war,” He Yongqian, a commerce ministry spokesperson, said. “China is open to dialogue with the US but it must be conducted on an equal basis with mutual respect. We do not provoke trouble, nor do we fear trouble,” he said.

China has also filed a complaint against the US with the World Trade Organization (WTO), according to the People’s Daily. At a meeting of the WTO’s Council for Trade in Goods on Wednesday, China said US tariff policy violates WTO rules and called it a “typical act of unilateralism, protectionism, and economic bullying.”

Yes, it is only China, of its active trade partners, that has no fear of Trump’s bullying and threatening. China knows its own strength and consistency, and its firm focus on objectives for the good of the nation and its people.

The China Economic Journal brags that China is the world’s largest manufacturing industrial economy and exporter of goods. Manufacturing has been transitioning toward high-tech industries such as electric vehicles, renewable energy, telecommunications and IT equipment, and services have also grown as a percentage of GDP. China is the world’s largest high technology exporter. With 791 million workers, the Chinese labor force was the world’s largest as of 2021, according to The World Factbook.

And Trump thinks that with the imposition of higher tariffs on imported goods and services, the US will replace local demand for these items that an instant US manufacturing industrial economy would produce for whatever Americans and the world would need or want? Make America great again (MAGA)! But the entire world has been spoiled and abetted by cheaper, easily accessible goods made in China, Vietnam, Thailand, India, Bangladesh — by any country other than America.

Trump, playing God with his onerous tariffs on foreign goods and services, has alienated himself and the US from most of the world.

 

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

ahcylagan@yahoo.com

MEGA mindset

EDSA at night on a holiday is welcome sight for traffic-weary commuters and motorists. — PHOTO BY JOYCE REYES-AGUILA

Make EDSA Great Again

LOOMING ROAD repairs along Epifanio delos Santos Avenue (EDSA) are already causing a lot of motorists to gnash their teeth and have nightmares of a traffic meltdown in Metro Manila.

EDSA, of course, is the main thoroughfare traversing the north and south axes of the metropolis. A report by ABS-CBN last December placed the number of vehicles passing through EDSA every day at 464,000. The clincher, according to the same report: This volume of traffic is nearly double EDSA’s carrying capacity of 250,000 vehicles — and has exceeded it since 2012.

EDSA used to be called Highway 54 before it was subsequently renamed MacArthur Boulevard in 1945. The year after, it became known as Avenida 19 de Junio — commemorating the birth date of national hero, Jose Rizal. It was only in 1959 that it received its present name to honor the Rizaleño historian, jurist, and scholar: Epifanio de los Santos y Cristobal.

Road construction started back in 1939 and the main artery was partially opened in 1940 just before World War II. In the 1950s, the northern end of EDSA was designated as the Bonifacio Monument in Caloocan. Work continued, expanding it from two lanes to four. It was only in the 1960s that the Guadalupe Bridge was constructed to connect the northern and southern segments of EDSA. In the south, the end point is the EDSA Extension that crosses Roxas Boulevard and terminates at the rotunda in front of the Mall of Asia.

EDSA is the longest and, unfortunately, the most congested highway in the Metro Manila area. It runs 23.8 kilometers and passes six of the 17 local government units in the metropolis. Traffic crawls especially during the rush hours. Last December, the Metropolitan Manila Development Authority (MMDA) reported that the average speed along EDSA was expected to slow from 21kph to 15kph at the peak of the yearend holiday season.

I travel on EDSA every day to and from work. I live in Mandaluyong and my office is in Makati. Actually, I have walked along EDSA to the office a few times as part of my cardio workouts on weekends. It’s not that far — it took my legs about an hour and a half to cover eight kilometers or so. On the other hand, when I take the car to work in the mornings, it takes me about 20 minutes if leaving my place of residence at around 6:30 a.m. Going home, however, is a whole other story — taking about 40 to 60 minutes. If I leave the office at the peak rush hour of around 5 to 6 p.m., getting home can take as long as 90 to 120 minutes. It would be faster, require less patience, and even be healthier (minus the smog) if I just walked the distance.

Probably the most dreadful part of the scheduled road repairs will be work done on the aforementioned Guadalupe Bridge. It is, even now, already a choke point in the daily drive or commute. In fact, repair of the bridge was initially reported to start late last year but was deferred in consideration of the usual Christmas “car-mageddon.” The latest report from the Department of Public Works and Highways (DPWH) is that repairs will have to start this month. Roadworks on the northbound lanes will precede those of the southbound ones.

One hopes that the worry might be misplaced. I had a similar sense of dread last year when work on the Kamuning flyover was announced. As it turned out, there were some disruptions as a result of rerouting, but it seemed that the MMDA and local police units managed to keep things under control. They did an extensive communication campaign preceding the closure of lanes so motorists could identify alternative routes. I believe that maximum tolerance was also practiced in consideration of possible confusion among drivers. This will be even more critical this time around. I urge calm and think we should wait for official announcements rather than let our imagination get ahead of us.

Clearly, there is a way of managing road use so that maintenance work can proceed smoothly. In the first place, motorists need to accept that there is no avoiding the work that needs to be done. Due to age and heavy use, EDSA has, indeed, deteriorated. As I pointed out at the start, the number of vehicles plying the highway is twice its carrying capacity. Driving along its breadth, one is sure to notice that it is full of patchwork — much like a heavily injured person covered with Band-Aids. As is wont to happen, the “Band-Aids” peel off and the road sores reappear. Any vehicle operator knows to step on the brakes or take the foot off the gas when manuevering around potholes or unevenly paved roads. In turn, this causes traffic to slow down, leading to unnecessary and inordinate delays.

With acceptance comes patience and perseverance — from both motorists and traffic enforcers. One thing we can be sure of is that repairs will be completed at some point. In fact, I noted that the repaving of the northbound lanes between Kalayaan and Guadalupe was done with minimal disruption. If we follow alternate traffic instructions, we allow the road crews to do their job quicker and complete their repairs sooner. Hopefully, work can be hastened during the summer.

I am encouraged by the resolve of the government to take on the repair and upgrade of EDSA now. There really is no putting it off. It is necessary to protect the driving and riding public. The mantra should be “safety first, always.” Then, of course, the elimination of potholes, uneven road surfaces and other impediments should — nay, must — result to a smoother traffic flow, getting us from point to point in greater comfort and less time. Let us be a part of the solution by following directions of traffic enforcers, keeping out of the way of road repair crews, and allowing them to get the job done sooner rather than later.

ADB pushes for Blue Economy Act

THE Asian Development Bank (ADB) said the Philippines needs to sign the proposed Blue Economy Act to improve marine-based livelihoods and ensure the long-term sustainability of the ocean economy.

In the Asian Development Outlook released April 10, the ADB said: “The pending legislation provides a comprehensive policy framework to integrate marine spatial planning, environmental-economic accounting, industry development, and climate action into national and regional development plans.”

Senate Bill No. 2450 seeks to guide the use and development of marine wealth within the coastal and maritime domain.

It passed on final reading in August. The House counterpart legislation passed in December 2023.

“Swift passage and implementation of this bill are crucial to achieving a coherent and well-coordinated blue economy strategy,” the ADB said.

The bank said ocean-based industries accounted for an average 4% of Philippine GDP in 2018–2023.

Output of the ocean-based industries consisted of fisheries at nearly 30% in 2023, followed by the manufacture of ocean-based products (20.9%), maritime transport (15.0%), and ocean-based power generation (10.3%).

“Marine renewable energy — offshore wind, solar, wave, and tidal energy — can help the country reach the target of increasing renewable energy’s share in power generation to 35% by 2030 and 50% by 2040,” it said.

The ADB also called for stricter enforcement of the Extended Producer Responsibility Act.

This law requires producers, manufacturers and other companies to move away from single-use plastics and establish their own waste recovery schemes in partnership with communities, local governments, and other stakeholders.

Rose-Liza Eisma-Osorio, acting vice-president of Oceana, said the Blue Economy Bill also covers reclamation and other coastal development activities.

“There’s something wrong with how they view the blue economy,” she said, citing reclamation along Manila Bay, which has “permanently or irreversibly destroyed coastal resources and marine resources,” she said by phone.

Ms. Osorio instead called for the bill to be “reframed” and highlight economic drivers from the oceans without engaging in destruction of resources.

Ms. Osorio also noted the need for immediate release of the implementing rules and regulations of the Philippine Ecosystem and Natural Capital Accounting System Act. — Aubrey Rose A. Inosante

Bella Ramsey teases action-packed season 2 of The Last of Us

Bella Ramsey in a scene from The Last of Us.

LONDON — Makers of the post-apocalyptic TV series The Last of Us say fans are in for extra action and scarier zombies when the show returns for a much-awaited second season, two years after the first season finale aired.

The series is based on the video game franchise of the same name and follows survivors Joel Miller, played by Pedro Pascal, and his young protege Ellie (Bella Ramsey), who fight mutated creatures and other people.

The show’s second season takes place five years after the events of the first season, and sees Joel and Ellie, who is now 19, settled in Jackson, Wyoming, and at odds with each other.

“There’s a lot more action in this season, or more like physical fighting. It was more intense, more emotionally complex,” Ramsey said premiering the new season in London on Thursday.

Craig Martin, who co-created the series with Neil Druckmann, said the seven-episode second season stays loyal to its source material and the style they established previously.

“Neil and I just said, we’re going to adapt following the same method as season one. So, let’s not change anything, which I think sometimes people change things, but if it’s working, you sort of keep your process,” Mazin said.

“But we did learn a lot about mounting action and about portraying the infected and making them even more convincing, more grounded, and more scary. So, people that really like the infected and maybe thought, ‘oh, I wish we had seen some more,’ there will be more because the story demands it,” he added.

The second season also introduces audiences to new characters. It stars Isabela Merced in the role of Dina, Ellie’s best friend, and Beef actor Young Mazino as Dina’s ex, Jesse, a “pillar of his community.”

The series has already been confirmed to return for a third season.

“Season 3 is very exciting. There’s a little hint in the second season, I reckon, as to where the third season is going to go, so watch out for that,” said Ramsey.

The Last of Us season 2 debuts on HBO and Max on April 13 and Sky and NOW on April 14. — Reuters

Manila continues to slump in IMD’s Smart City Index

Manila fell four places to 125th out of 146 cities in the latest edition of the Smart City Index. This was the Philippine capital’s lowest ranking thus far according to Switzerland-based International Institute for Management Development (IMD). The Smart City Index measures and rates each city’s level of technological application to the five key areas: health and safety, mobility, activities, opportunity, and governance.

Manila continues to slump in IMD’s Smart City Index

LCF touts DEI to boost corporate growth

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THE League of Corporate Foundations (LCF) said companies should incorporate diversity, equity, and inclusivity (DEI) as well as corporate social responsibility (CSR) into their business strategies, as these could help boost corporate growth.

“Businesses that prioritize DEI do more than adapt; they lead. By embedding DEI into their core strategies, they unlock new opportunities, drive meaningful change, and contribute to a more equitable and sustainable future for all,” LCF Chairperson and Vivant Foundation, Inc. Executive Director Shem Jose W. Garcia said during a launch event in Makati City last week.

“This includes intentional efforts to ensure the inclusion of underrepresented groups, particularly women, persons with disabilities, senior citizens, Indigenous people, people of various faiths and beliefs, and others,” he added.

According to Mr. Garcia, businesses should embrace DEI as a key driver of sustainable development in the country.

LCF said that 43% of Southeast Asian companies, including those in the Philippines, have diversity programs, higher than the 36% in 2020, based on a study by the Boston Consulting Group.

Mr. Garcia said this as LCF launched its 2025 CSR Conference and Expo last week with the theme “DEI for Shared Prosperity.”

The conference will be held from July 1 to 3 at Dusit Thani Manila, while the Expo will be on July 1 and 2 at the Glorietta Activity Center in Makati City.

The 2025 CSR Conference and Expo aims to highlight the role of businesses in embedding DEI into their core strategies, ensuring CSR initiatives are a catalyst for systemic change, sustainability, and shared prosperity.

“Integrating DEI into business strategies is not only about corporate responsibility,” Mr. Garcia said.

The 2025 CSR Conference and Expo will feature discussions, networking opportunities, and insights on integrating DEI into both CSR initiatives and overall business operations.

The event is co-presented by Cebuana Lhuillier Foundation, Inc. and co-organized with Metro Pacific Investments Corp. Foundation, Inc., and The SM, Henry Sy, and Felicidad T. Sy Foundations, Inc.

LCF is the country’s leading network for fostering environmental, social, and governance-driven initiatives. It is composed of operating and grant-making corporate and family foundations. — Revin Mikhael D. Ochave

Climate change and health

PCH VECTOR-FREEPIK

Climate change is having profound and far-reaching effects on human health, the World Health Organization (WHO) warns. It contributes to death and illness through increasingly frequent extreme weather events — such as heatwaves, storms, and floods — as well as the disruption of food systems; rising cases of zoonotic, water-, food-, and vector-borne diseases; and growing mental health challenges.

In simple terms, climate change refers to long-term shifts in temperatures and weather patterns. While these changes can occur naturally — such as through solar activity or volcanic eruptions — human activities have been the dominant driver since the 1800s. The primary culprit? The burning of fossil fuels like coal, oil, and gas, which releases greenhouse gases such as carbon dioxide and methane. These gases trap the sun’s heat in the atmosphere, causing the planet to warm like a blanket wrapped around it.

Today, around 3.6 billion people live in areas highly vulnerable to climate change. Between 2030 and 2050, the WHO estimates that climate change will cause an additional 250,000 deaths annually, from causes like undernutrition, malaria, diarrhea, and heat stress. The projected direct health-related costs (excluding those related to other sectors like agriculture and water supply) are estimated at $2-4 billion per year by 2030. Regions with under-resourced health systems — often in developing countries — face the greatest risks.

But climate change doesn’t just affect physical health. It also threatens many of the social determinants of health — livelihoods, access to care, equality, and support systems. The burden falls most heavily on vulnerable groups: women, children, the poor, the elderly, migrants, and those with chronic illnesses.

To avoid catastrophic health consequences, the WHO emphasizes that global warming must be limited to 1.5°C. Reducing emissions through improved transport, food systems, and energy choices can yield immense health benefits, especially by reducing air pollution.

PHILIPPINE RESPONSE
The Philippines is a signatory to the Paris Agreement, which aims to limit the global temperature rise. The country has also endorsed the COP28 UAE Declaration on Climate and Health and is part of the WHO-led Alliance for Transformative Action on Climate and Health — all steps toward building climate-resilient health systems.

At home, the Department of Health (DoH) has been leading multistakeholder efforts to safeguard health from climate impacts. In line with the Climate Change Act of 2009, the DoH sits on the Climate Change Commission’s advisory board and chairs the Inter-Agency Committee on Environmental Health. The DoH also plays a key role in the National Climate Change Action Plan (2011-2028) and the National Adaptation Plan (2023-2050).

Most notably, in January, the DoH established the Health and Climate Change Office (HCCO) — a dedicated unit tasked with coordinating a whole-of-society response to climate threats while promoting sustainable, low-carbon, and climate-resilient health systems.

The HCCO is responsible for:

• Embedding climate considerations into health policies and programs;

• Integrating health concerns into broader climate strategies and plans;

• Leading cross-sector collaboration to protect public health from climate risks;

• Developing a unified Health and Climate Change Program across DoH units;

• Crafting a Health and Climate Change Roadmap and Action Plan, with clear short-, medium-, and long-term targets.

BIOPHARMACEUTICAL INDUSTRY’S ROLE
Innovative biopharmaceutical companies are also stepping up — not only by addressing the health challenges posed by climate change, but also by minimizing their own environmental footprints. These companies are:

• Developing new technologies to detect, treat, and prevent climate-sensitive diseases;

• Reducing emissions across their operations and supply chains;

• Investing in renewable energy and energy efficiency;

• Lowering water use and increasing recycling and sustainability practices;

Together with the DoH and other partners, the biopharmaceutical industry is committed to ensuring that the health impacts of climate change are addressed with urgency, innovation, and shared responsibility.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines which 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.

Hongqi PHL to introduce next-gen EVs

A profile of the Hongqi EH7 — PHOTO FROM EVOXTERRA

EVOxTerra, exclusive distributor of Hongqi in the Philippines, said it is set to augment its lineup with the introduction of “next-generation electric vehicles” — the Hongqi EH7 all-electric sedan and Hongqi EHS7 all-electric SUV.

Launched recently at the Paris Motor Show, both the Hongqi EH7 and Hongqi EHS7 continue to gain global recognition and popularity as parent company FAW-Hongqi develops new vehicles that are “technologically advanced, and feature uncompromised comfort, performance, and safety that exceed global standards.”

Hongqi Philippines President Rashid Delgado said, “What you’re about to see from Hongqi isn’t just your typical vehicle rollout. What we’re about to unveil speaks to a brand-new design paradigm for Hongqi. These models reflect a radical change in our design philosophy that we believe is as modern and innovative as the technology in the cars themselves.”

Mr. Delgado further commented that both the Hongqi EH7 and Hongqi EHS7 have markedly different designs from Hongqi’s current design language. With sleek external lines and improved internal architecture, the EH7 and EHS7 will be Hongqi’s interpretation of electric luxury. Both vehicles will feature next-generation battery and electric motor technology that boast of greater power efficiency through high-capacity batteries and high-output motors.

Hongqi’s new-generation electric vehicles highlight their shift to a sleeker, more modern approach to automotive design and innovation. As Hongqi continues to grow in Europe, Southeast Asia, and the Americas, the global market can expect even more exciting products soon.

Hongqi’s full lineup is available for viewing and test drive at showrooms located at BGC, Manila Bay, Alabang, and Quezon City. Test drives may be booked through https://www.hongqi.ph. For more information, follow Hongqi’s official Facebook page at https://www.facebook.com/hongqi.philippines/ and Instagram (@hongqi.ph).

Debt yields end higher on Trump tariffs, BSP

YIELDS on government securities (GS) traded in the secondary market went up last week amid increased volatility due to the Trump administration’s shifting tariff policies and the Bangko Sentral ng Pilipinas’ (BSP) policy meeting.

GS yields, which move opposite to prices, rose by an average of 6.17 basis points (bps) week on week, according to the PHP Bloomberg Valuation Service Reference Rates as of April 11 published on the Philippine Dealing System’s website.

Rates at the short end of the curve were mixed, with the 91- and 364-day Treasury bills (T-bills) increasing by 2.47 bps and 0.69 bp to fetch 5.3701%, and 5.7804%, respectively. Meanwhile, the yield on the 182-day T-bill fell by 6.39 bps to 5.6180%.

At the belly, yields went up across all tenors. The two-, three-, four-, five-, and seven-year Treasury bonds (T-bond) saw their rates increase by 2.52 bps (to 5.7505%), 6.89 bps (5.8097%), 10.82 bps (5.8865%), 14.54 bps (5.9774%), and 20.83 bps (6.1572%), respectively.

At the long end, rates were mixed. The 20- and 25-year bonds inched down by 0.09 bp and 0.02 bp to fetch 6.3156% and 6.3156%, respectively. Meanwhile, the yield on the 10-year T-bond surged by 15.57 bps to 6.2576%.

GS volume traded was at P36.07 billion on Friday, lower than the P96.37 billion recorded a week earlier.

Trading last week was volatile due to uncertainties over US President Donald J. Trump’s trade policies, a bond trader said.

“There was a significant rise in investor demand for fixed-income securities as a hedge against the more pronounced movements in the local equity market,” the trader said in an e-mail.

“However, bond movements were still being primarily driven by anticipated inflationary impact of the announced tariffs on imported goods, especially on the longer end of the yield curve. The recently announced 90-day lowering of US tariffs to 10% for applicable Philippine imports have likewise eased significant market concerns over its potential impact to inflation,” the trader added.

ATRAM Trust Corp. Vice-President and Head of Fixed Income Strategies Lodevico M. Ulpo, Jr. said in a Viber message that the yield curve steepened last week, partly driven by the increase in US Treasury rates amid global trade concerns.

“Yields reacted to global and domestic developments with longer-dated bond yields tracking global bond markets. US Treasury yields jumped on concerns about the US economy post Trump’s tariff tantrum. Short end yields edged lower, tracking the BSP’s much anticipated rate cut,” said Nicholas Antonio T. Mapa, chief economist at Metropolitan Bank & Trust Co.

Beijing increased its tariffs on US imports to 125% on Friday, hitting back against Mr. Trump’s decision to raise duties on Chinese goods and increasing the stakes in a trade war that threatens to upend global supply chains, Reuters reported.

The retaliation intensified global economic turmoil unleashed by Mr. Trump’s tariffs. US stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark US 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signaling a lack of confidence in America Inc.

The $29-trillion Treasury market saw an acute sell-off following Mr. Trump’s initial announcement about what he calls reciprocal tariffs. That turbulence was seen as part of what drove Mr. Trump to announce a 90-day pause for countries other than China on Wednesday.

The White House has said since then that more than 75 countries have sought trade negotiations with the United States and that future deals would bring certainty.

The tit-for-tat tariff increases by the US and China stand to make goods trade between the world’s two largest economies impossible, analysts say. That commerce was worth more than $650 billion in 2024. 

Benchmark 10-year US Treasury yields, which move opposite to prices, registered their biggest weekly rise in more than two decades, with trading volumes well above average, amid fears that China may be offloading a large portion of its US bond holdings.

The market’s anticipation of a jumbo issuance of new 10-year benchmark T-bonds also drove yields higher, Mr. Ulpo said, overshadowing the BSP’s widely expected rate cut on Thursday.

“While the BSP’s decision was aligned with easing inflation and signaled a dovish stance, its market impact was muted amid heightened supply concerns and shifting risk sentiment. The upcoming bond issuance created a defensive tone in the belly to the long end of the curve as investors positioned ahead of expected duration supply. With global factors still dominant, market expectations have tilted toward higher long-end yields despite the easing cycle,” he said.

“Despite the rate cut, yield movements were more reactive to global rate volatility and looming supply risks, dampening the downward pressure on yields that typically follows a policy easing,” Mr. Ulpo added.

The Bureau of the Treasury (BTr) is looking to raise at least P30 billion through 10-year fixed-rate Treasury notes that will start this week. National Treasurer Sharon P. Almanza said the offering will establish a new 10-year benchmark bond.

The BTr will hold the price-setting for the bonds on Tuesday. The offer is set to run until April 24, unless closed earlier, while the issue date is scheduled for April 28.

Meanwhile, the Monetary Board on Thursday cut benchmark interest rates by 25 bps to bring the policy rate to 5.5%, as expected by all 17 analysts in a BusinessWorld poll.

BSP Governor Eli M. Remolona, Jr. said expectations of easing inflation support the shift to a more accommodative monetary policy stance.

He added that the Monetary Board is considering further rate cuts this year but maintained that these will be delivered in “baby steps” of 25 bps at a time.

“For now, what we’re looking at is a few more cuts, but we have more meetings than the number of cuts we are thinking about,” Mr. Remolona said.

The Monetary Board has four meetings left this year, which are scheduled for June 19, Aug. 28, Oct. 9, and Dec. 11.

For this week, the market’s focus will be on the Treasury’s bond offer, Mr. Ulpo said.

“All eyes will be on the expected issuance of a jumbo 10-year bond, which is likely to test market appetite for duration and drive positioning across the curve. Preliminary indications suggest the bond may price with a coupon in the 6.25%–6.5% range, reinforcing expectations of continued steepening unless strong demand emerges,” he said.

“At the same time, external risks — particularly upcoming US inflation data and any Federal Reserve commentary — remain critical drivers for sentiment and could exacerbate volatility in long-end yields. Market participants should remain cautious, as supply pressures and global macro factors continue to dominate short-term rate direction,” Mr. Ulpo added.

The trader said that the market will continue to monitor the US government’s trade policy announcements. “Moreover, they will also consider major economic releases on Chinese GDP (gross domestic product) and US retail sales, which might provide an initial assessment of the potential impact of a protracted trade war on broader global economic prospects.” — Abigail Marie P. Yraola with Reuters

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