Heavy rains flood homes and crops in northern France

November 13, 2023 | 12:01 am

SAINT-ETIENNE-AU-MONT, France — Days of heavy rains in northern France have caused rivers to overflow and flood houses and fields, prompting the evacuation of residents, with some having to be airlifted to safety.

More than 100 towns are on red alert, and some 200 schools in the region have been shut. Rescue workers have also had to evacuate cattle.

“It’s catastrophic,” said 32-year-old farmer Gaetan Guche, whose poultry farm has been flooded, with up to 60 centimeters of water at times over the past five days.

Some chickens have been killed by the water, and he is worried about the others, fearing the spread of disease amid the humidity.

“We have to wait for the water to go down before we can see the whole damage. But I’ve had losses in chickens, financial losses in terms of seeds and equipment, and so today, it’s really hard.”

Nearby, strawberry farmer Jean-Loup Mionnet, whose fields are partly submerged in water, said next spring’s harvest was compromised, fearing he will have few to no strawberries.

“We’ve never seen anything like that,” said campsite owner Jean-Marc Joyez in the village of Enquin-sur-Baillons, where many houses are flooded and roads submerged.

Environment Minister Christophe Bechu said dozens of towns would be considered in a situation of natural disaster, which makes it easier for those whose homes or businesses were flooded to benefit from insurance coverage. — Reuters

Yields on gov’t securities decline after inflation data

November 13, 2023 | 12:01 am

YIELDS on government securities (GS) traded in the secondary market fell last week, driven by the slowdown of headline inflation as well as the economy’s bounce back in the third quarter.

Bond yields, which move opposite to prices, declined by 11.8 basis points (bps) on average week on week, based on PHP Bloomberg Valuation Service Reference Rates as of Nov. 10 published on the Philippine Dealing System’s website.

Last week, rates were mixed across all tenors with yields on the 91-, 182- and 364-day Treasury bills (T-bills) rising by 1.35 bps, 6.14 bps and 0.89 bp to 6.1845%, 6.4582%, and 6.5917%, respectively.

Meanwhile, the belly of the curve went down as yields on the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) fell by 11.04 bps (6.4822%), 13.77 bps (6.5022%), 18.32 bps (6.5184%), 23.27 bps (6.5413%), and 29.22 bps (6.6209%), respectively.

At the long end, the rates of the 10-, 20-, and 25-year debt papers likewise, decreased by 25.62 bps (6.7416%), 8.90 bps (6.8905%) and 8.03 bps (6.8850%), respectively.

On Friday, total GS volume traded fell to P11.43 billion from P16.43 billion, a week earlier.

The local bond market moved lower this week due to slower-than-expected headline inflation in October, a bond trader said in an e-mail.

“Market participants likewise considered the prospects of no further US rate hikes in the near term following the Fed’s dovish pause this month,” the bond trader added.

For Alessandra P. Araullo, chief investment officer at ATRAM Trust Corp., both local and global catalysts leaned hawkishly in October to put significant pressure on local rates.

“Long-end US Treasury yields surged to fresh year-highs towards the 5% level amid a backdrop of a still-hawkish sounding Fed,” she said in a Viber message.

She added that the country’s latest consumer price index (CPI) “surprised to the upside” after reversing back to the 6.1% level in September and having hit a low of 4.7% earlier in the year.

In October, headline inflation slowed down to 4.9%, significantly slower than the 6.1% in September and 7.7% in the same month a year ago, due to easing food prices.

This marked the slowest pace in three months or since July’s 4.7%.

The October figure also marked the 19^th straight month that inflation breached the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target band.

Overseas, surging US Treasury yields sapped investors’ risk appetite and weighed on stocks over the last few months by helping tighten financial conditions as they raised the cost of borrowing for companies and households, Reuters reported.

The report added that some US Federal Reserve officials last month said rising yields could substitute for further rate hikes by the central bank as they tightened financial conditions.

A lot can — and has — changed over the course of a week, Ms. Araullo said.

“[US Treasury yields] have since rallied significantly back below the 4.6% area due to myriad factors, not the least of which is a more dovish sounding Fed,” she said.

Locally, she added that the central bank has similarly tilted dovishly, ruling a November hike out of play and reiterating data dependency.

“BSP rhetoric leaned more aggressively, with an off-cycle hike similarly taking us to a 6.5% policy rate with post-hike rhetoric still indicating further action in November,” she said.

The Monetary Board will have its meeting on Thursday, Nov. 16.

For the bond trader, the downturn in local inflation has beneficially moved inflation expectations lower and its impact on bond yield levels for next year.

“Moreover, the stronger Philippine gross domestic product (GDP) report for the third quarter has bolstered views that the BSP might consider holding the policy rate steady in its November meeting in order to support the rebound in the domestic economic activity,” the bond trader said.

In the third quarter, the Philippine economy expanded by 5.9% driven by the recovery in government expenditures, better than the 4.3% expansion in the previous quarter.

The third quarter economic performance ended three straight quarters of slowing growth.

However, this was still slower than the 7.7% growth a year earlier.

“While the thesis for an immediate reversal on policy from both the BSP and the Fed has been pushed back towards the second half of 2024 potentially — relevant factors indicate that they have decelerated, indicating that the highs hit last week are toppish — with momentum unlikely to push yields significantly higher,” Ms. Araullo said.

She said she had seen a return of buying interest at these levels and continues to see value, reiterating a view on fixed income moving towards yearend and into the first quarter of 2024 when rates are expected to have dropped lower.

This week, the bond trader sees GS yields declining due to some market caution ahead of the BSP policy meeting.

“On the international front, potentially softer US consumer and producer inflation reports for October might support the declining trend in inflation which could exert less pressure for the US Fed to consider more policy rate hikes,” the bond trader said. — Abigail Marie P. Yraola

Monde Nissin rises on Q3 data, support for alternative meat

November 13, 2023 | 12:01 am

MONDE NISSIN Corp.’s share price went up last week amid a strong third-quarter (Q3) revenue report and its commitment to absorb the losses of its subsidiary.

Data from the Philippine Stock Exchange (PSE) showed a total of 28.49 million shares worth P228.76 million were traded from Nov. 6 to 10, making the stock the 16^th most actively traded in the local market last week.

Shares in the Betty T. Ang-led food manufacturer rose by 6.1% week on week to P8.38 per share on Friday from its P7.90 finish on Nov. 3.

Year to date, the stock’s price declined by 24.4%.

Analysts said Monde Nissin’s shares last week were driven mostly by the company’s third-quarter income report and its commitment to shoulder future impairment losses of its alternative meat company, Quorn Foods.

“This provided investors with something to cheer about. As in the previous quarters, Monde’s earnings had declined due to its challenged meat alternative business and lower volumes for some of its product categories,” Philstocks Financial, Inc. Research and Engagement Office Mikhail Philippe Q. Plopenio said in an e-mail.

In the third quarter, Monde Nissin recorded a 68.2% increase in its attributable income to P2.3 billion from P1.4 billion last year. Its consolidated revenues rose by 15.7% to P20.5 billion from P17.7 billion in the same period a year ago.

Meanwhile, earnings from its alternative meat business declined by 4.2% to P3.6 billion as of September due to the challenging retail market in the United Kingdom.

In a company disclosure, the controlling family shareholders said that they decided to extend “meaningful financial support” to cover future impairment losses capped at up to 12% of Monde Nissin’s outstanding shares amounting to 2.156 billion shares.

“This financial support by myself and the family shareholders comes after listening to and reflecting on the concerns that some of our shareholders have expressed about the current challenges in the meat alternative category which are impacting our business in the United Kingdom,” Chief Executive Officer Henry Soesanto said.Despite the headwinds, analysts expect upbeat market sentiment but anticipated Quorn to drag the company’s bottom line performance in the fourth quarter.

“We expect margin improvements in [the fourth quarter] for the company as they are able to acquire key commodities at favorable prices. The company’s Asia-Pacific business is expected to sustain volume recovery under the noodle division, which saw volumes decline in the same period last year due to the controversy surrounding its Lucky Me! Brand,” Manuel Antonio M. Castro, equity analyst at Regina Capital Development Corp. said in an e-mail.

Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce expects the company’s net income attributable to the parent firm to dwindle by about 3.2% in the fourth quarter to P2.2 billion.

“Monde Nissin’s cost of goods sold increased by 17.7% in the third quarter of 2023, due to higher prices for raw materials and packaging. This trend is likely to continue in the fourth quarter, as inflationary pressures remain high. For the full year, Monde Nissin’s net income attributable to parent is estimated to reach P7.2 billion,” Mr. Arce said in an e-mail.

Headline inflation slowed to 4.9% in October from 6.1% in September and 7.7% in the same period last year, well below the 5.1-5.9% forecast of the Bangko Sentral ng Pilipinas for the month.

Mr. Arce placed Monde Nissin’s support and resistance prices this week at P7.81 and P8.75, respectively.

Regina Capital Development Corp.’s Mr. Castro pegged the stock company’s support and resistance levels at P7.9 and P8.6, respectively.

“For Monde Nissin’s, our initial support and resistance are pegged at the P8.21 and P9.62 levels, respectively,” said Philstocks Financial, Inc.’s Mr. Plopenio. — Mariedel Irish U. Catilogo

Lung cancer: What you need to know

November 13, 2023 | 12:01 am

November is Lung Cancer Awareness Month. Lung cancer is the second most common type of cancer in the Philippines after breast cancer, according to the Healthy Pilipinas website of the Department of Health.

Lung cancer begins in the lungs and may spread to lymph nodes or other organs in the body, such as the brain. Cancer from other organs may also spread to the lungs. Common symptoms of lung cancer include coughing that gets worse or doesn’t go away, chest pain, shortness of breath, wheezing, coughing up blood, feeling very tired all the time, and weight loss with no known cause.

Cigarette smoking is the number one risk factor for lung cancer. People who smoke cigarettes are 15 to 30 times more likely to get lung cancer or die from lung cancer than people who do not smoke, warns the US Centers for Disease Control and Prevention (CDC). Even smoking a few cigarettes a day or smoking occasionally increases the risk of lung cancer. The more years a person smokes and the more cigarettes smoked each day, the higher the risk.

Secondhand smoke (smoke from other people’s cigarettes, pipes, or cigars) also causes lung cancer. Living in areas with higher levels of air pollution may increase the risk of getting lung cancer. Individuals whose parents, brothers or sisters, or children have had lung cancer are at risk of developing the disease. This could be true because they also smoke, they live or work in the same place where they are exposed to radon and other substances that can cause lung cancer, or because of an inherited genetic mutation, explains the CDC.

The most important thing you can do to prevent lung cancer is to not start smoking, or to quit if you smoke. Also, avoid secondhand smoke.

The only recommended screening test for lung cancer is low-dose CT scan (LDCT). The US Preventive Services Task Force recommends yearly lung cancer screening with LDCT for people who have a 20 pack-year or more smoking history; those who smoke now or have quit within the past 15 years; and those who are between 50 and 80 years old. A pack-year is smoking an average of one pack of cigarettes per day for one year. For example, a person could have a 20 pack-year history by smoking one pack a day for 20 years or two packs a day for 10 years.

The American Cancer Society (ACS) said that there are two main types of lung cancer. The first is non-small cell lung cancer (NSCLC). About 80% to 85% of lung cancers are NSCLC, and the main subtypes are adenocarcinoma, squamous cell carcinoma, and large cell carcinoma.

The second type is small cell lung cancer (SCLC). It is sometimes called oat cell cancer. This type of lung cancer tends to grow and spread faster than NSCLC, added the ACS. In most people with SCLC, the cancer has already spread beyond the lungs at the time it is diagnosed.

Lung cancer treatment includes surgery (operation to cut out the cancer), chemotherapy (using special medicines to shrink or kill the cancer), radiation therapy (using high-energy rays to kill the cancer), targeted therapy (using special medicines to block the growth and spread of cancer cells). Another option is immunotherapy which is the use of medicines to help a person’s own immune system to recognize and destroy cancer cells more effectively.

In May 2022, the Union for International Cancer Control together with close to 30 partners, including the biopharmaceutical industry, launched the Access to Oncology Medicines (ATOM) Coalition. The coalition is a global partnership with a shared goal to increase access to quality-assured essential cancer medicines in low- and lower middle-income countries, as well as increase the capacity for high-quality diagnosis and treatment.

The International Federation of Pharmaceutical Manufacturers and Associations noted that the level of precision and tailoring in new treatments is on the rise.

In order to treat a specific tumor, for example, a sample will be taken from the patient. It will then be profiled and then manufactured, effectively tailoring a treatment unique to that patient.

The era of personalized medicine has indeed began where a one-size-fits-all treatment is no longer the rule. It is a period that must be harnessed and supported by healthcare systems that put patients at the center of care.

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.

New Falken flagship tire now available here

November 13, 2023 | 12:01 am

VELO_image1 — The Falken Azenis FK520L will come in many sizes and is designed for the demands of contemporary automobiles. — PHOTO BY KAP MACEDA AGUILA

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AS JAPAN-HEADQUARTERED international tire brand Falken marks 40 years since its founding, JM Far East, Inc., its exclusive distributor here in the country, recently introduced the Azenis FK520L, which takes its place as the flagship model in the country’s portfolio.

The product, according to JM Far East President and CEO Winston Manabat in his speech during the recent formal launch of the model, is a direct successor of the brand’s popular FK510 ultra-high-performance tire, which it improves upon.

The FK520L, he maintained, addresses the general automotive trend that sees “bigger, wider, and longer” vehicles. “(This is) dictating the direction of tires.” Obviously, with larger vehicles come a bump in weight — along with the commensurate gains in torque and horsepower.

Mr. Manabat added that that Falken portfolio is reflecting this size bump, as it features 74 tire sizes for wheels measuring 12 to 16 inches, and more than double that number (155) for wheels 17 to 22 inches in size. He also attributes the disparity in the number of models in the continuing and increasing popularity of crossovers, which bear larger wheel wells. “That’s why you have to have bigger-diameter tires… and we are still adding more sizes.” The trend is also seeing the trickling down of products once meant for more expensive vehicles to entry-level ones — a change that Falken is seeking to capitalize on as it now caters to a wider demographic.

Back to the made-in-Japan FK520L, it is said to benefit from the brand’s substantial experience in motorsports. “The innovative Azenis FK520L ensures impeccable handling, providing unmatched stability and control at all speeds,” the company said in a release.

Product highlights include a new asymmetric tread pattern that “(ensures) optimum road contact, high braking force, and stability and control in wet conditions,” and a new composition promising 10% longer service life and an eight-percent improvement in dry performance. It also gets an Aramid Layer Reinforcement for better cornering and increased high-speed stability. Aramid is a tough material (stronger yet lighter than steel, insisted Mr. Manabat) used to make bulletproof vests.

The newest iteration of the aforementioned FK510 has also been “honored with multiple awards by different trusted organizations, further emphasizing its global acclaim and excellence,” said JM Far East in a release. The Falken Azenis FK520L is now available at authorized dealers nationwide. — Kap Maceda Aguila

Style (11/13/23)

November 13, 2023 | 12:01 am

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Fendi releases Golf Capsule 2023

FENDI has released its latest take on sports, the Fendi Golf Capsule, which highlights the golf-style essentials with comfort and sophistication. The collection features a refined palette of beige and navy-blue as seen in a short-sleeved polo shirt with a subtle FF logo on the collar that can be worn with blue or beige cotton Bermuda shorts and a matching knitted gilet which has two vertical jacquard FF bands on the front. A hooded rain jacket complements the looks and follows the same palette of ecru and midnight blue, featuring a reversible azure side. A new declination of the Fendi Roma logo in yellow and white is printed on a long-sleeved cotton polo shirt as well as on the nylon jacket. Bold accessories exclusively designed to hit the green course include a golf bag in black Cuoio Roma leather or in classic tobacco-colored FF logo fabric. The same color combinations are featured on the golf ball and tee holders, which include three Callaway golf balls branded Fendi and four branded wooden tees. Adding to the set, a metal divot with FF engraving can be used to repair ball marks on the grass of the golf course. A set of golf club covers is crafted from white shearling with yellow FF logo intarsia, and is made up of three sizes for Hybrid, Driver and Wood clubs. Following the same Fendi fun spirit, another golf club cover is shaped like a teddy bear knitted in soft brown FF cashmere. The Fendi Golf Capsule is available in selected boutiques worldwide and on fendi.com.

Merrell unveils Agility Peak 5 trail running shoe

MERRELL introduces the Agility Peak 5, the latest evolution in trail running footwear. Boasting a contemporary design, this fifth version of the Agility Peak series maintains its proven elements while embracing innovation, offering a versatile option for trail enthusiasts. Designed for comfort, the Agility Peak 5 prioritizes cushioning without compromising stability. The shoe incorporates a modernized midsole for improved cushioning, while the utilization of FloatPro Foam ensures a reduced overall weight. The outsole’s construction maximizes traction, allowing for a stable and secure run across uneven landscapes. Targeting runners seeking maximum cushioning without sacrificing traction, the Agility Peak 5 provides 50mm of cushion and comfort for rugged terrain. Noteworthy features include a heightened protective mud guard along the shoe’s mesh upper, contributing to increased durability. Merrell engaged pro athletes and its trail team to provide feedback during testing, including participation in the Skyrunning World Championship. Emphasizing sustainability, the Agility Peak 5 incorporates recycled materials, including a recycled mesh lining and footbed, as well as 50% recycled, non-removable EVA foam footbed. Both the Men’s and Women’s Agility Peak 5 shoes cost P6,495. The Agility Peak 5 collection can be found in Merrell concept stores nationwide, major department stores, the official Viber community, and their official webstore www.merrell.com.ph.

Hada Labo releases new moisturizers

HADA LABO, makers of Japan’s No. 1 face lotion, has come out with a new range of moisturizing products. It is introducing Hada Labo Premium Whitening Moisturizers that deliver triple brightening power. This new line of moisturizers consists of Premium Whitening Water Cream and Premium Whitening Water Gel that both contain brightening ingredients niacinamide, alpha-arbutin, and Vitamin C that work together to reawaken dull skin, fight dark spots, and even out skin tone. Each moisturizer is also formulated in a unique way to address specific skin needs. Premium Whitening Water Gel has an ultra lightweight water gel texture that’s instantly absorbed into the skin, a suitable choice for those with normal to oily skin. Premium Whitening Water Cream deeply hydrates skin, making it a great option for all skin types. The Hada Labo Premium Whitening Moisturizers are now available at Watsons stores nationwide and online through the Watsons Online Store, and the official Mentholatum stores on Lazada and Shopee.

Alabang Town Center holds sale with a disco twist

ALABANG Town Center will be holding its Paint The Town Red Sale from Nov. 13 to 19. The mall-wide event promises shoppers discounts of up to 70% from participating merchants. What will truly set this event apart from other holiday sales is the “Discount Disco,” a one-of-a-kind activation that combines Y2K nostalgia with the electric energy of disco. The “Discount Disco” is open to players aged 13 years old and above. Teams of two to four players are welcome to participate. Players will receive a briefing on safety guidelines and will be provided with safety gear. Each team starts with five lives and has 45 seconds to navigate the disco floor. The disco floor is divided into Green, Blue, and Red sections. Green blocks are safe zones, Blue blocks represent points to be collected, and Red blocks are the danger zone. Players must accumulate points during the game, but stepping on a red block results in losing one life, and one point is deducted from the total score. The game ends when a team consumes all five lives. The goal is to achieve the highest score within the time limit, making every move count. Prizes include gift certificates from select Alabang Town Center shops and merchandise. Every participant will also be entitled to a raffle entry for a chance to win accommodations at Lagen Island Resort in El Nido or roundtrip tickets to Siargao, Coron, San Vicente, Camiguin, or Naga. To secure one’s entry into the game, present single or accumulated receipts from any Alabang Town Center store, dated Nov. 13 to 19 (excluding bills payment and telecom lane). For teams of two players, a minimum of P3,000 in single or accumulated receipts is required. For teams of three to four players, a minimum of P5,000 in single or accumulated receipts is required.

Avon’s gift suggestions for Christmas

AVON has suggestions for presents with power this holiday season and beyond. Gift the power to feel confident with the Avon Anew Power Couple Set (P1,499), which is powered by Avon’s Protinol Technology. The gift set features the Avon Anew Renewal Power Eye Cream which instantly blurs and brightens the look of the total eye area, while reducing the appearance of lines and wrinkles over time, and the Anew Renewal Power Serum for dramatically smoother, plumper, and firmer-looking skin which promises a visible difference in just seven days. Then there is the Avon Black Suede Holiday Gift Set (P749) featuring the Black Suede fragrance’s strong notes of warm woods, fresh greens, and leather. The gift set consists of Black Suede Deodorant and Body Wash. Then there is the Avon 5 Days of Surprise Jewelry Set (P699), a collection designed to allow users to craft unique looks. The set includes one necklace chain, one bracelet, three pairs of stud earrings, three necklace pendants, three bracelet charms, and one ring which can be easily mixed and matched. All pieces come in a gold finish. Each box comes in gift-ready packaging. For the home there is the Avon Viennese Waltz Reed Diffuser (P499) with subtle hints of sweet pea, cassis, and musk. Able to last up to five weeks, each diffuser comes in a gift box.

There is also the Avon Dream to Shine Makeup Collection (P309 to P599), with the Dream to Shine Face Highlighter whose creamy texture makes it easy to apply for a soft-focus glitter. The Dream to Shine collection includes Ultra lipsticks in two finishes: Ultra Matte Lipstick gives velvety matte lips that won’t crack, while Ultra Creamy Lipstick provides a creamy 100% satin finish. Both are made with a blend of Vitamin E, avocado oil, and sesame oil. For true makeup lovers there is the Avon Dream to Shine Eyeshadow Palette with 12 intense colorful wells in various finishes. These are just some of the holiday gift sets available on avonshop.ph/collections/gifting-2023, through Avon representatives, and on Lazada, Shopee, and TikTok Shop.

Hello Glow’s solution for underarm woes

HELLO GLOW has launched its newest underarm care offerings: the Hello Glow Whitening Quelch Serum Deo Cream and Hello Glow Rejuvenating Quelch Serum Deo Cream to help users achieve lighter and softer underarms. The Whitening Quelch Serum Deo Cream, which uses a combination of kojic and glutathione, is able to regulate the production of sweat and prevent bad odors, lighten dark underarms, protect and hydrate the skin, and provide a skin-smoothening effect. For underarms with a textured and uneven skin tone, Hello Glow Rejuvenating Quelch Serum Deo Cream contains powerful ingredients with color correct complex that work on the skin’s surface and deep into the pores to help brighten and restore the natural tone of the skin. The addition of niacinamide acid also helps keep breakouts at bay, while tranexamic acid targets post-acne hyperpigmentation for an extra boost in brightening. These two products also have an ultra-soft cream texture that provides antiperspirant and anti-bacterial effects that can last up to 48 hours after application without leaving white or yellow marks on clothes. These products are available for P295 each at Hello Glow’s official online store in Lazada, Shopee, Tiktok Shop, and Official Ever Bilena Resellers.

How PSEi member stocks performed — November 10, 2023

November 13, 2023 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Friday, November 10, 2023.

Analysts’ Expectations on Policy Rates (November 2023)

November 13, 2023 | 12:00 am

THE BANGKO SENTRAL ng Pilipinas (BSP) is widely expected to keep benchmark interest rates steady at its meeting on Thursday, after inflation eased to a three-month low in October. Read the full story.

Peso may trade sideways ahead of BSP meeting

November 12, 2023 | 9:00 pm

THE PESO may trade sideways against the dollar this week as the market expects the Bangko Sentral ng Pilipinas (BSP) to hold its key rate unchanged at its Nov. 16 meeting.

The local unit closed at P55.96 per dollar on Friday, weakening by seven centavos from its P55.89 finish on Thursday, based on Bankers Association of the Philippines data.

Week on week, it gained 14 centavos from its P56.10 close on Nov. 3.

The peso opened Friday’s session at P56.03 against the dollar, which was also its weakest showing. Its intraday best was at P55.92 versus the greenback.

Dollars exchanged went down to $951.7 million on Friday from $1.33 billion on Thursday.

The peso weakened against the dollar on Friday after Fed Chair Jerome H. Powell said the US central bank will continue to move carefully and will not hesitate to raise rates when needed, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“[The] peso weakened following hawkish remarks from Fed Chair Powell,” Security Bank Corp. Chief Economist Robert Dan J. Roces likewise said in a Viber message.

The Fed kept its benchmark interest rate steady at the 5.25%-5.5% range for a second straight time during its Oct. 31-Nov. 1 meeting.

It has hiked rates by a cumulative 525 basis points (bps) since it began its tightening cycle in March last year.

The US central bank will next meet on Dec. 12-13 to review policy.

Mr. Ricafort said the hawkish signals from Mr. Powell resulted in a generally stronger dollar and higher US Treasury yields on Friday.

For this week, the peso could move sideways but will depend on the BSP’s move at its Nov. 16 meeting, Mr. Roces said.

The BSP is widely expected to match the Fed’s move last week, Mr. Ricafort noted.

The Monetary Board implemented an off-cycle 25-bp rate hike on Oct. 26, ahead of its Nov. 16 meeting, bringing its benchmark policy rate to 6.5%.

It has raised interest rates by 450 bps since May 2022 to temper inflation.

Mr. Roces expects the peso to move between P56.60 and P56 per dollar this week, while Mr. Ricafort sees it ranging from P55.70 to P56.20. — Aaron Michael C. Sy

Market seen to take cue from BSP, US inflation

November 12, 2023 | 9:00 pm

STOCK MARKET investors are expected to keep a close eye on the Bangko Sentral ng Pilipinas (BSP) policy meeting this week, as well as the release of the US October inflation data.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) went down by 26.33 points or 0.42% to close at 6,161.89, while the broader all shares index shed 12.52 points or 0.37% to end at 3,316.86.

Week on week, the PSEi fell by 172.62 points or 2.88% from its close of 5,989.27 on Nov. 3.

“The PSEi saw a limited pullback on Friday despite posting a steep six-day ascent, which to us indicates improving market optimism on resilient earnings, and better-than-expected economic data,” China Bank Securities Corp. Research Associate Lance U. Soledad said in an e-mail.

This week, Mr. Soledad said that the market “could be poised to test higher resistance levels” depending on the results of key events such as the release of the US inflation data and the BSP policy meeting.

“After last week’s strong rebound fueled by positive surprises in local inflation and GDP (gross domestic product) prints, investors will look at this week’s release of US October inflation data and the policy meeting of the BSP to determine the direction of stocks,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

US consumer price index data is scheduled for release on Tuesday while the BSP will hold its key policy rate meeting on Thursday.

The central bank hiked borrowing costs by 25 basis points (bps) in an off-cycle move last month, bringing the key rate to a fresh 16-year high of 6.5%. The BSP has raised policy rates by 450 bps since May 2022.

A BusinessWorld poll conducted last week showed that 15 of 18 analysts expect the Monetary Board to keep benchmark interest rates unchanged at 6.5% during its Nov. 16 meeting.

On the other hand, three analysts see the BSP raising borrowing costs by 25 bps to 6.75%

“The market found grace this week from favorable macro-economic data that gave enough escape velocity to shortly make a trip to 6,200. Sustainability will be called into question; more positive surprises in data [plus] reallocation and window dressing come December should help with this regard,” online brokerage 2TradeAsia.com said in its report on Friday.

2TradeAsia.com placed the PSEi’s support at 6,000 and resistance at 6,300 while Mr. Colet put the index’s support and resistance at between 6,050 and 6,250. — Sheldeen Joy Talavera

Self-financed investment in energy efficiency projects seen rising to P1.7T

November 12, 2023 | 8:04 pm

SELF-FINANCED projects are expected to account for up to P1.7 trillion worth of energy efficiency investments by 2040, according to the Philippine Energy Efficiency Alliance, Inc. (PE2).

“The Philippine Energy Efficiency Alliance believes that up to P1.7 trillion in energy efficiency investments will be self-financed or carried by the balance sheets of commercial and industrial establishments in the Philippines through 2040,” PE2 President Alexander Ablaza said in a Viber message.

Income tax holiday (ITH) incentives for self-financed projects could encourage some P330 billion in energy efficiency investments, Mr. Ablaza said.

The incentives are authorized by the Energy Efficiency and Conservation (EEC) Act and the Corporate Recovery and Tax Incentives for Enterprises Act.

The EEC law describes energy efficiency projects as those “designed to reduce energy consumption and costs by any improvement, repair, alteration, or betterment of any building or facility.”

This includes equipment, fixtures or furnishings to be added to any building, facility, or vehicle including the manufacturing and provision of services alike.

The P1.7 trillion in projected investments excludes the estimated P2.3-trillion investment gap in self-financed energy efficiency projects in the transport, residential, and agriculture sectors over the next two decades, Mr. Ablaza said.

He said that the ITH incentive could potentially improve the commercial viability of up to P8.1 trillion in third-party investment for energy efficiency upgrades in the commercial, industrial, transport, residential and government sectors through 2040.

“This investment volume is over and above and significantly larger than those that will be self-financed or through other on-balance sheet financing modalities,” he said.

The Board of Investments (BoI) issued last month a memorandum circular updating the guidelines to register EEC projects under the 2022 Strategic Investment Priority Plan.

The memo specified that self-financed energy efficiency projects are only entitled to the ITH incentives and duty exemption on imports of capital equipment, raw materials, spare parts or accessories.

“The general concept that BoI is adhering to is this — the more investment risk one takes on, the more it needs fiscal incentives to de-risk such investment,” Mr. Ablaza.

He said that compared to third-party investors, proponents of self-financed energy efficiency projects “take less risk” as they are investing in capital equipment to be installed within their own operations and premises.

“BoI needed more clarity in the guidelines for self-financed energy efficiency projects to ensure that ITH is narrowly limited to the confines of the capital equipment for the energy efficiency projects and not across the entire financial operations of the establishment,” Mr. Ablaza said.

He said that the EEC law “continues to trigger new policy issuances and that at least 75% of the EEC guidelines issued by the Department of Energy (DoE) and BoI and the resolutions of the Inter-Agency Energy Efficiency and Conservation Committee are already in effect.”

“We are hoping the remaining 25% of policy issuances will have to fill the policy gaps to enable P8.1 trillion in off-balance sheet capital flows toward 2040,” Mr. Ablaza said.

Mr. Ablaza also said that the PE2 expects the DoE, the Energy Regulatory Commission, and the Philippine Economic Zone Authority to draft specific guidelines “to enable demand-side management, as well as investments in load-shifting technologies in the demand side of the energy market.” — Sheldeen Joy Talavera

Taiwan investments in Philippines driven by island’s labor shortage

November 12, 2023 | 8:03 pm

THE investment pledges from Taiwan obtained by a Philippine Economic Zone Authority (PEZA) mission were a response to the island’s labor shortages, an economist said.

Foundation for Economic Freedom President Calixto V. Chikiamco said Philippine investments are a way for Taiwan companies to harness the Philippines’ surplus labor.

“Taiwan has a labor shortage and an ageing demographic profile. It’s likely they are looking to invest in the Philippines to take advantage of surplus labor in the Philippines and its location near Taiwan,” Mr. Chikiamco said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the Taiwan companies perceive opportunities in the high levels of plastic waste generated by the Philippines.

The promise lies in the current lack of cheap environment-friendly alternatives for packaging, he said.

PEZA recently led a five-day mission to Taiwan in which it was able to secure P20.6 billion in investment leads and pledges.

Some P11.36 billion was from a consortium of Japan and Taiwan companies making compostable packaging.

PEZA said that the consortium is interested in food service applications for its packaging.

A P7.95-billion investment pledge was made by a renewable energy company that wants to use recycled waste paper as feedstock. It also wants to pursue vertically integrated low-carbon papermaking and eco-packaging manufacturing.

“The same company is also interested in developing a waste-to-energy plant,” PEZA noted.

Meanwhile, another manufacturing company plans to put in P681.85 million to expand its Electronic Manufacturing Services business. It makes, assembles, inspects and tests electronic products and provides engineering support.

A company that develops eco-friendly non-asbestos friction materials used in bicycle disc brake systems is also expected to invest P484 million, according to PEZA.

The investment promotion agency also obtained a P171-million pledge from a Taiwan precision stamping and plastic model services company.

Asked when PEZA expects the pledges to materialize, PEZA Director General Tereso O. Panga said that the companies are at varying stages of the investment pipeline.

“Some are in exploratory stages, while some are in advanced stages — those who have already finalized site selection or made down payments in their preferred economic zones,” Mr. Panga said in a Viber message.

“Those in the latter stages of site selection might apply this year with PEZA. We expect those in exploratory stage to just be starting on site selection and register next year. Notwithstanding, we’re closely monitoring the developments on each of the leads,” he added.

PEZA said the companies in the exploratory stages are the Japan-Taiwan consortium and the renewable company, with the rest further along in the process.

“Whether or not these pledges will turn into actual investments depends on the ease of doing business here, the availability of power and other infrastructure, the security situation, and treatment from local governments toward investors,” Mr. Chikiamco said.

Mr. Ricafort said it is unlikely for the projects to materialize this late in the year.

“Aside from PEZA’s own efforts, we have like-minded government partners such as PTIC-Taipei that can do follow-up on the ground. Partner ecozone developers also ensure that the groundwork is done for a seamless preparation of the facilities,” he added. — Justine Irish D. Tabile