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A labor of love

Michael Leyva’s bridal fashion show at The Pen

DESIGNER Michael Leyva closed the Manila Peninsula’s bridal fair, “Weddings at The Peninsula and More,” with a grand fashion show, starring his latest bridal and couture collection. Mr. Leyva has dressed celebrities like Kris Aquino (particularly during her turn on the emerald carpet for the Hollywood film Crazy Rich Asians) and Anne Curtis.

For the show on April 6, the great marble frontispiece of The Peninsula’s staircase was covered up and draped, the models coming out of the two staircases on the side. A model first appeared on the mezzanine’s balcony, then two more appeared from the sides, like figures in a music box — then disappearing.

The show began in earnest with a dress with a tight bodice wrapped around the body, paired with a flared skirt. The sleeves and bodice were scattered with larger-than-life white roses, and another white rose pinned to a hat. The next look was pared down with a simple sleeveless bodice with a giant skirt covered all over with silk petals, while a third dress had a sweetheart neckline with a draped silk skirt. The menswear choices were limited to tuxedos in jewel tones (no complaints here).

Another dress seemed inspired by the Art Deco era, with a halter neck, and completely beaded all over. The throwback to the 1930s continued with a tiered lace skirt topped with a jacket, and a slinky sheath dress, stark as a Greek column, with the same big white roses on the shoulder and the bust. There was a sleeveless bodice rising up to cover the shoulder, the rest of the dress had a tiny bow at the waist, also scattered with floral appliques.

The collection played a lot with volume: we saw a dress resembling the 2000s bandage dress, tight; but given body with a puffed-up silk shawl. The same puffs and drapes were seen all over, such as in a bright, slinky magenta number. Another halter dress with a fringe had the skirt scrunched up around the waist like a cloud of fabric. A teal number mimicked the same effect with a voluminous sleeve. There was a lovely delicate high-necked dress with an overlay of lace, then another little terno (the Filipina traditional dress with butterfly sleeves) with a circle skirt and a pattern in black recalling cathedral windows.

The show came alive with the background music from The White Lotus, Season 2, a great contrast to the rather somber black terno with a giant white rose on the bodice; its skirt gathered, draped, and dropping below the waist. This was followed by a gray number with an accordion skirt, the aforementioned voluminous shawls and skirts, and an amethyst-colored suit. We saw an emerald dress, draped like a sack, held up by straps, and a nice little cocktail dress sewn to look like a single rose.

Mr. Leyva also did three-dimensional effects with his clothes, such as in a nice brown silk suit with flowers in the same color and material, rising out of the suit like a bas-relief. We saw the same effect on a simple gray corseted gown, and a slinky purple dress. A spectacle was a pair of twins in identical brown dresses, which can be altered by pulling at the tendrils on them.

One might think gray dresses are for the drab and shy, but not one of these gowns was meant for wallflowers. Mr. Leyva showed off a big gray dress with a massive ballgown skirt of layered tulle, then an aubergine drop-waisted number with a skirt that flared out (think of it like this decade’s robe de style); this one was worn with a black head ornament like a bubble of vines.

The show and the songs were reaching a climax with a magnificent off-shoulder red dress with fringe sleeves, a hooded black gown with priestess sleeves, and an accordion skirt on an otherwise sleek black sheath, topped off with a cheeky velvet wide-brimmed hat.

For the finale, Mr. Leyva brought out a huge red dress with a ballgown skirt covered in tiny red ruffles that probably took hundreds of man-hours to make: in rose red, the illusion was a flower come to life.

The allusions to flowers were no coincidence: the collection was named “Memoria ng Hardin” (Memory of a Garden). The collection is a tribute to his late brother Brian, himself a designer before his demise. “Every stitch, fold, and delicate detail is a labor of love,” said Mr. Leyva in a statement. “This collection is a narrative of gratitude, remembrance, and celebration.

“Designing this collection for The Peninsula show allowed me to pour my heart into each piece. It’s more than just fashion — it’s a celebration of love, dreams, and timeless beauty,” he said.

For more information, follow Michael Leyva at https://www.instagram.com/michaelleyva_/Joseph L. Garcia

DigiPlus shares inch higher despite market instability

DIGIPLUS.COM.PH

SHARES OF DIGIPLUS Interactive Corp. edged higher last week despite tariff-driven uncertainties in the local bourse, as analysts remained optimistic about the company’s fundamentals and position in the market.

DigiPlus was the 12th most traded stock on the exchange during the week, with 20.91 million shares worth P730.63 million changing hands from April 7 to 11, data from the Philippine Stock Exchange (PSE) showed.

Week on week, shares of the Tanco-led company inched up by 0.3% to P35.75 on Friday  — slightly higher than the 0.1% gain of the services index and the 0.03% decline recorded in the PSE index.

Year to date, the stock has risen by 31.7% from its P27.15 closing price on Dec. 27, 2024.

Jemimah Ryla R. Alfonso, equity research analyst at Unicapital Securities, Inc., said in an e-mail interview that the online gaming operator’s domestic market exposure kept it insulated from international trade disruptions, which triggered spillover effects from broader market sell-offs last week.

Last Monday, the PSEi dropped to the 5,800 level following an aggressive sell-off driven by global tariff escalations. DigiPlus closed at P32.85 that day, its lowest for the week.

“We believe DigiPlus’s fundamentals remain robust despite the backdrop of shifting US trade dynamics,” said Ralph Jonathan B. Fausto, research associate at China Bank Securities Corp., in an e-mail interview.

In 2024, the company’s revenues surged by 176% to P75.22 billion from P27.25 billion in the previous year. Likewise, the company’s attributable net income rose by 208.5% to P12.58 billion from P4.08 billion.

“With revenues primarily derived from the domestic mass gaming segment, the company is less exposed to the volatility affecting traditional brick-and-mortar gaming operators that rely on inbound tourism for VIP player activity,” said Mr. Fausto.

Ms. Alfonso also said the company could consistently deliver solid gross gaming revenue growth if it maintains strong user base expansion and engagement.

The company’s 2024 integrated annual report showed it had over 40 million registered users across its digital entertainment platforms — up from more than 30 million users in 2023.

Its product portfolio includes digital bingo platform BingoPlus, online sportsbook ArenaPlus, and digital card gaming platform GameZone.

The company’s offerings also feature digital carnival games inspired by traditional Filipino amusements, such as Color Game, Pa Pula, Pa Puti, and Drop Ball.

“We believe DigiPlus could have another banner year as it remains a dominant player in the e-gaming space,” Ms. Alfonso added.

“We expect earnings to remain resilient, backed by a steadily expanding active user base and a proven track record of successfully launching high-engagement gaming products,” said Mr. Fausto.

Mr. Fausto and Ms. Alfonso also said the rollout of DigiPlus’s Brazil operations could serve as a key catalyst for the stock in 2025.

In January, DigiPlus obtained a definitive authority from the Brazilian government, enabling operations in the Brazilian market through its unit, DigiPlus Brazil Interactive Ltda.

“Regarding their expansion strategy — particularly in Brazil — the risk of overextension appears contained. Their Brazil venture is being managed by a different team, which limits operational overlap,” said Ms. Alfonso.

“While the Brazil market offers compelling long-term potential, competitive intensity may moderate the pace of initial market penetration,” said Mr. Fausto.

Ms. Alfonso also said DigiPlus stands as a strong contender for inclusion in the PSEi rebalancing this August, which could serve as another major driver of investor interest and momentum.

However, Mr. Fausto said competitive headwinds may intensify, particularly with the forthcoming entry of integrated resort operators into the online gaming space.

In its annual report, DigiPlus identified competition from Playtime, OKBet, CasinoPlus, Bet88, and other digital gaming operators offering comparable services.

Additionally, Bloomberry Resorts Corp., a holding company for resorts and casinos listed in the 30-member PSEi, said in its own annual report that it is currently developing an online platform intended to compete directly with DigiPlus’s BingoPlus platform.

“We continue to view the online gaming sector as a sunrise industry, with substantial headroom for growth for all industry participants,” Ms. Alfonso said.

For 2025, Ms. Alfonso forecasted DigiPlus to deliver a net income of P16.5 billion.

Mr. Fausto forecasted the company’s earnings to reach P19.9 billion in 2025, driven by continued strength in domestic gaming operations, tempered cost growth, and expected initial contributions from its Brazil operations.

“We currently identify support levels for the stock at P35.25 and P35.85, corresponding to the 20-day exponential moving average,” said Ms. Alfonso.

“Meanwhile, resistance is expected at around the P37.50–P38.40 zone.”

Mr. Fausto pegged support levels at P34.40 and P32, and resistance at P38 and P40. — Pierce Oel A. Montalvo

Treasury bill, bond rates may be mixed due to market volatility

RJ JOQUICO-UNSPLASH

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) to be auctioned off this week may end mixed to mirror secondary market yield movements amid global trade war concerns, expectations of fresh supply of debt papers, and dovish signals from the Bangko Sentral ng Pilipinas (BSP).

The Bureau of the Treasury (BTr) will auction off P25 billion in T-bills on Monday or P8 billion each in 91- and 182-day papers and P9 billion in 364-day papers.

On Tuesday, the government will hold its price-setting auction for an offering of new 10-year fixed-rate Treasury notes (FXTN), from which it wants to raise at least P30 billion. The offer period is scheduled to run until April 24, unless closed earlier.

The BTr has canceled the auction of 15-year bonds scheduled for April 22 to make way for the FXTN offering.

Yields on the T-bills and bonds may track the mixed rate movements at the secondary market last week, which came amid broad volatility due to overseas and domestic developments, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

T-bill auction yields this week may be little changed or slightly lower following the BSP’s latest rate cut and signals of further monetary easing amid an improving inflation outlook, he said.

Meanwhile, the 10-year bonds could fetch rates in line with secondary market levels to track the rise in US Treasuries due to the shifting trade policies of the United States and fears of a global trade war, Mr. Ricafort added.

“Yields on government securities (GS) shot up by as much as 20 basis points (bps) as stops were triggered following rising uncertainties globally. Moreover, [this] week’s 10-year jumbo FXTN auction repriced the local curve higher. The coupon rate is now expected to be either 6.375% or 6.5%,” a trader said in an e-mail.

At the secondary market on Friday, rates of the 91- and 364-day T-bills rose by 2.47 bps and 0.69 bp week on week to end at 5.3701%, and 5.7804%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of April 11 published on the Philippine Dealing System’s website. On the other hand, the 182-day paper went down by 6.39 bps to yield at 5.618%

Meanwhile, the 10-year bond saw its yield rise by 15.57 bps week on week to close at 6.2576%.

The BSP 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, putting its easing cycle back on track after an unexpected pause in February amid uncertainties stemming from the policies of US President Donald J. Trump.

BSP Governor Eli M. Remolona, Jr. said expectations of easing inflation support the shift to a more accommodative monetary policy stance, adding that the Monetary Board is considering further rate cuts this year in “baby steps” of 25 bps at a time.

The Philippine central bank has now reduced borrowing costs by a cumulative 100 bps since it kicked off its easing cycle in August last year.

Meanwhile, 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.

Benchmark 10-year US Treasury yields, which move opposite to price, 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.

Last week, the BTr raised P24.46 billion from the T-bills it auctioned off, short of the P25-billion plan, even as total bids reached P63.33 billion.

Broken down, the Treasury borrowed just P7.46 billion via the 90-day T-bills, lower than the P8-billion program, even as tenders for the tenor reached P12.96 billion. The three-month paper was quoted at an average rate of 5.393%, rising by 8.6 bps from the previous auction. Tenders accepted by the BTr carried yields of 5.325% to 5.449%.

Meanwhile, the government made a full P8-billion award of the 181-day securities as bids for the paper amounted to P19.03 billion. The average rate of the six-month T-bill was at 5.645%, 0.8 bp lower, with accepted rates ranging from 5.545% to 5.747%.

Lastly, the Treasury raised P9 billion as planned via the 363-day debt papers as demand for the tenor totaled P31.34 billion. The average rate of the one-year debt went down by 2.2 bps to 5.726%, with bids accepted having yields of 5.71% to 5.745%.

Last week’s T-bill tenors were adjusted as the issue date was pushed back due to a holiday. — A.M.C. Sy with Reuters

Heart’s beauty secrets are no secret

The new Ultherapy PRIME endorser admits to using Botox and fillers

HEART EVANGELISTA (a.k.a. Love Marie Ongpauco-Escudero, after her marriage to now-Senate President Francis “Chiz” Escudero) adds a feather to her cap as the country’s new face for Ultherapy PRIME, an upgraded version of the Ultherapy treatment available in the Philippines.

According to a statement, “Ultherapy PRIME is the only US FDA-cleared non-invasive medical aesthetics treatment with real-time visualization that provides a truly personalized and long-lasting lift of the skin in one session with zero downtime.” According to the company, the platform features a modern design with an advanced operating system, delivering 20% faster treatments, elevated ergonomics and more efficient workflows for aesthetics physicians. Additionally, with a 35% larger screen, faster image refresh rate with brighter, crisper images from all angles, Ultherapy PRIME provides a vivid visualization experience. By combining advanced ultrasound technology, vivid real-time visualization and proven results, Ultherapy PRIME’s advancements can promote long-lasting results paired with healthier-looking skin. The machine goes beyond other non-invasive treatments to target the right collagen and elastin-rich layers of the tissue at multiple depths. The machine is brought to the Philippines via Vanguard Aesthetics.

Ms. Evangelista’s endorsement was launched at a Makati dinner on April 4. Raymond Ong, Merz Asia Pacific Assistant Vice-President for Regional Commercial said in a speech, “Ultherapy PRIME is an evolution of Ultherapy; the same gold standard we have come to love over the years and now made better.” The first Ultherapy machine came out in 2009; this second one was launched in October last year. “We have waited almost 14 years,” he said. “It comes with overwhelming demand,” he added, noting that the waiting list for the machine across the globe is in the thousands.

In the region, Ultherapy PRIME is represented by stars Lee Min Ho and Jun JiHyun in the See My Skin, Lift My Way: Love My Prime campaign; Ms. Evangelista is the Philippines.’ Upon being praised about her looks onstage, the once-teen star who turned 40 in February thanked the host and said, “You know what I did.”

IN HER PRIME
“I try to say everything I do,” said Ms. Evangelista, saying that she had just landed from Greece, and was wearing a blue velvet dress at the event (which was seen on the red carpet of a TV network’s ball later in the evening). “I just turned 40,” she said in response to a question about being in her prime (as per the campaign). “I used to be afraid of aging and all of that. But truly I feel like I’ve only just begun.

“I feel like it’s your experiences in life. Sometimes, when you’re young; you’re pretty, you have so much collagen production in your face — but the honest truth, there’s something about age and wisdom that really brings you to that moment that you know that (you’re) in your prime,” she said. “I truly love myself these days. I always give myself a pat on the back, for everything I’ve been through.”

She told the audience about her experiences with the new Ultherapy machine. “I’m always at the clinic. Whenever I’m here… I do everything just to make sure that everything’s in place, intact, it’ll stay that way.

“It’s less painful,” she said of treatments with the new machine, noting that she doesn’t actually like to “put a lot of Emla (a topical anesthetic; back in 2017, she told a magazine she uses it on her feet to stay in heels).” For her, the numbing cream takes too long to take effect (around 20 to 30 minutes by her count). “It’s my family time,” she said.

BOTOX, FILLERS
In a group interview backstage, Ms. Evangelista talked about the work that she had done on her face. “I do my Botox. I did my lip fillers a long time ago, pero humupa na (they have since calmed down). Itigil na natin (let’s stop it). I do. of course, my machines,” she said, noting that her Ultherapy treatments are spaced out every six months. “For that, I do a lot of skin treatments. Just really trying to maintain the jawline and the neck.”

As for her summer beauty tips, she said, “Moisturize, no sun, drink lots of water, and pray a lot.”

She talked about how other celebrities do not admit to having cosmetic procedures or plastic surgery, while touching on rumors about her own face. “I understand. I always get — people say I got my eyes done; I got my nose done. But I really didn’t. So if I did, I would just say it para maturo nila kung saan sila pumunta (so people will learn where they can go). Share the blessings!”

“And if I do get anything done, I will let you know.”— Joseph L. Garcia

Meralco, French firm partner to explore nuclear energy dev’t

(L-R) Meralco Vice-President and Head of Business Development Andrew Jason B. Tan, EDF Senior Vice-President Vakisasai Ramany, Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan, and Meralco Executive Vice-President and Chief Operating Officer Ronnie L. Aperocho

POWER DISTRIBUTOR Manila Electric Co. (Meralco) has partnered with state-controlled French multinational electric utility company Electricité de France SA (EDF) to explore the potential deployment of nuclear energy in the Philippines.

Under a two-year memorandum of cooperation, EDF will provide technical and strategic support to Meralco for a feasibility study focused on site activities, power system integration, and the economic viability of nuclear energy in the country’s energy mix, the company said in a media release on Sunday.

The French utility firm will also conduct “customized training sessions” on nuclear reactor technology and nuclear project management. It will also extend assistance and services to Meralco to implement a potential nuclear program in the country.

“One of the Philippine government’s key objectives is to achieve greater energy security for our country, and nuclear power is one viable path toward that goal,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said.

“We see this cooperation as a significant first step for Meralco, and we are committed to taking a leadership role in advancing nuclear energy in the Philippines. We look forward to deepening our collaboration with France in this crucial area,” he added.

Under the Philippine nuclear energy roadmap, the country is targeting to have at least 1,200 megawatts (MW) of nuclear energy capacity by 2032, scaling this up to 2,400 MW by 2040 and 4,800 MW by 2050.

“Through this important first step — and the opportunity to engage in meaningful discussions with you — we hope to make real progress at your site as well. This is the beginning of what we envision as a remarkable, long-term journey, one that could span the next hundred years,” EDF Senior Vice-President for International Nuclear Development Vakisasai Ramany said.

Last year, Meralco, along with the Meralco Power Academy, tapped Université Paris-Saclay to be a partner institution for its Filipino Scholars and Interns on Nuclear Engineering (FISSION) program to enhance the competencies of Filipino energy professionals in the field of nuclear energy.

The power distributor also engaged several French government research and industrial institutions, such as the Nuclear Safety and Radiation Protection Authority and The French Alternative Energies and Atomic Energy Commission, among others, to explore potential partnerships for knowledge sharing on nuclear energy.

“As the country’s largest electric distribution company, Meralco has since forged partnerships with reputable global institutions to gain insights and delve into opportunities that can pave the way for the safe adoption of nuclear energy in the country,” the company said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Understanding Trump’s America

MONG SING HAI MARMA -VECTEEZY

Why is the US President Donald Trump waging a trade war against its closest neighbors and allies, Mexico and Canada? Why is the United States abandoning Ukraine and its security commitments to Europe? Why is he befriending Russia’s authoritarian, Vladimir Putin, and sacrificing Europe, which shares democratic values with the United States? Why does Trump want to impose universal tariffs on America’s friends, and not just China? Why does Trump let the world’s richest man, Elon Musk, and his DOGE (Department of Government Efficiency) slash and burn federal institutions?

The answer is national insecurity. The US is anxious that it’s entering the twilight of its empire. The US is a country addicted to debt. The US deficit is approximately P124 trillion in 2023, or 6% of its GDP. The total debt-to-GDP ratio was 124% in 2024. As British historian Niall Ferguson observed, when the interest the US pays on its debt is bigger than its defense expenditures, it’s a sign of an empire in decline.

The US is no longer so rich that it can take care of the needs of its citizens at home and maintain its security commitments abroad. Its ability to fight a two-front war — in Europe and in Asia, against a militarily powerful China, is increasingly in doubt. It’s finding that China is nipping at its heels, especially in core and leading technologies like artificial intelligence, quantum computing, semiconductor manufacturing, robotics, and biotechnology.

The US’s security vulnerability has been exposed by COVID-19 and the Ukraine war. During COVID, the US’s lack of manufacturing made it dependent on vital imports, from masks to ventilators. China supplies a significant share of the active pharmaceutical ingredients (APIs) as well as antibiotics, painkillers, and vitamins that go into US made drugs.

Supply chain disruptions during COVID, particularly of semiconductors. demonstrated American vulnerability. Semiconductors are the brains of almost all modern products, from doorbells and microwave ovens at the low end, to iPhones and supercomputers on the other end. However, the US has only 12% of the world’s semiconductor manufacturing capacity. Moreover, the leading-edge chips are manufactured in Taiwan and South Korea, both countries facing security threats from China and North Korea, respectively.

The US has allowed its shipbuilding industry to wither. China has 200 times more shipbuilding capacity than the United States. China presently has the world’s largest navy, while its commercial ships are now blanketing the world’s oceans.

The Ukraine war also showed that the United States needs to rebuild its defense industrial base. The war caused a rapid depletion of tanks, artillery shells, armaments, and drones of Ukraine and its US and European allies. One lesson from that war is that sustaining and eventually winning an intense and protracted war needs a strong and vibrant defense industrial base.

Considering the US’s national insecurity, Trump wants to rebuild manufacturing capacity in the United States. (American deindustrialization under free trade is what Trump calls “American carnage.”) The tariffs on steel and aluminum are intended to encourage producers to establish factories in the US.

Why desire Canada to be the 51st state? Because it has the rich mineral resources and cheap energy to power a US manufacturing revival. It guards the Artic, which has become a strategic geographic asset because of climate change and opening of vital sea routes.

Why target Mexico? Not because of fentanyl but because it’s a backdoor for Chinese goods to enter the US duty-free through NAFTA (North American Free Trade Agreement).

Why target allies like Japan and South Korea with tariff threats? Because they are seen as benefiting from the US security umbrella, but posting large trade surpluses against the US. They are also seen as unreliable allies because China is their largest trading partner.

Why DOGE? Because the US urgently needs to get its fiscal house in order. Whether firing federal employees will make a dent in the US budget deficit, considering that Social Security and Medicare represent the biggest budget items, is another question.

Why deregulation? Because US capitalists, particularly the IT behemoths represented by Jeff Bezos, Elon Musk, Marc Andreessen, and Peter Thiel, believe too much regulation is holding them back. The US needs a productivity revolution powered by Artificial Intelligence, to outpace the rise in debt.

Why abandon Ukraine, torpedo NATO (North Atlantic Treaty Organization), and befriend Russia? Because Russia is not an existential threat to the US. Perhaps to Europe, but not the US. Russian GDP is less than a tenth of that of the US. Russia’s economy is weak. It’s based on natural resources, and not advanced technology (it can’t produce its own semiconductors). Its military capacity is brittle. It can’t even conquer Ukraine.

Why deride Europe and abandon its commitments to NATO? Because Europe is seen as not spending enough for its own defense and “free riding” on the US security umbrella. Its dependence on the US is highlighted by the lack of innovation in its economy, its slow productivity growth, and widening disparity with the US on economic output per capita.

Trump wants to make America great again by cutting government spending, avoiding non-strategic wars, deregulating and unbinding tech capital, and restoring its industrial capacity by reordering the international trading system to balance its trade deficit.

The move to blow up the post-World War II rules-based order based on free trade, multilateral institutions like the WTO (World Trade Organization), and strong integrated alliances represents a high-risk gamble by the US that this will restore America’s greatness.

Waging a trade war with allies like Canada, Europe, and Japan can make them lose faith in the US and make the US strategically weaker without allies and friends. High tariffs can prompt domestic producers to raise prices for US consumers without them investing in new plants and equipment, especially given the erratic implementation of Trump’s tariff plan. The move to shift from the US dollar could accelerate, raise the cost of US debt, and undermine a major source of US power, which is the US dollar as the world’s reserve currency. Overall, Trump’s policies risk a lose-lose move for the US and the world.

On the other hand, the other superpower, China, is similarly insecure. China is still not self-sufficient in energy and food. It doesn’t have the blue water navy capable of defending its supply lines of oil from the Middle East, or its imports of food from the rest of the world, or the exports for which its economy is dependent. It has an unbalanced economy with low private consumption and overproduction. Accordingly, China faces a deflationary crisis, with falling prices and stagnant demand. It has a high debt-to-GDP ratio. It suffers from high income inequality, with a GINI coefficient (a measure of inequality) of more than 0.46, much worse than the United States.

While it has high-tech smart cities, a significant share of the population (about 500 million), mostly rural, is uneducated. A sharp urban-rural divide exists that could lead to social instability. (According to the Sinologist and economist Scott Rozelle in the book Invisible China, China has one of the lowest educational attainments of its rural population of any comparable country.) China is also facing a demographic disaster with a fast-ageing population (one of the fastest in the world) and a shrinking labor force.

It’s our bad luck that two insecure superpowers are butting heads in our neighborhood. With insecurity comes instability and the risk of a hot war. (Japan attacked Pearl Harbor because of its insecurity about its oil supplies, which former US President Franklin D. Roosevelt cut off.)

There’s a saying that when elephants fight, it’s the grass that gets trampled on. We — and the rest of the world — are the grass. Sigh.

 

Calixto V. Chikiamco is a member of the board of IDEA (Institute for Development and Econometric Analysis).

totivchiki@yahoo.com

Happy Inster

Fantastically ridiculous: The Hyundai Insteroid (or an Inster ‘on steroids’) integrates gaming elements with over-the-top sporty design. — PHOTO BY KAP MACEDA AGUILA

This concept version of Hyundai’s electric subcompact ‘urban SUV’ stretches the imagination

REMEMBER THE DAYS in school when you had nothing but a pen in hand and a blank piece of paper in front of you? Your inspiring, supportive teacher (raise your hand if you had more than one) just gave you a theme and challenged you to imagine anything you wanted onto that clean sheet.

That was basically the brief: To take the Inster and run away with the idea.

“It was one of our fastest projects. I think it was six months from scratch to running car,” said Hyundai Insteroid Exterior Design Manager Nicola Danza in an interview with “Velocity” and Ulysses Ang of CarGuide.ph at the Peaches D8NE in Seoul, South Korea recently. “The initial inspiration was extremely clear,” added Hyundai European Design Center Head of Interior Design Raphael Bretecher. “So there were no loops of change, things like that. We identified nice sketches… (and) just ran with them. We had the green light. We could do the car without any doubts. We went straight to the point.”

This writer asked for the project brief — the mission or use case for the Insteroid. “It was a simple question. What if young guys designed a car for themselves? Why don’t we do a car for the next generation that you can use yourself, without the pollution of all this experience or too much experience in the process? Well, just have fun and see what you could come up with. And that was the result,” revealed Mr. Danza.

Mr. Ang asked if the youth-oriented nature of the project was the reason for choosing the Inster as a “starting point.” “Yeah, it’s the smallest car in our range, and we put it on top of a big battery pack to see what comes up. And that’s why the name combines these two words: ‘Inster’ and ‘steroids’ from the high-powered battery,” continued Mr. Danza.

To be clear, the Insteroid was not created with the purposive intent of realizing a production model in the near future, but to “push the boundaries of automotive design.” The model was crafted to enshrine Hyundai’s “bold approach, merging gaming influences with extensive customization to capture a new generation of drivers,” Hyundai Motor Company said in a release.

As designers explained shortly after the unveiling of the Insteroid during a special preview, they were unfettered by pragmatic considerations when crafting the vehicle. “It’s concept car; it’s a platform with lots of ideas. And even if the car doesn’t come like it is into production — it’s not the goal anyway — there are always sport ideas that we can identify later,” insisted Mr. Bretecher. “(We can) mature them and probably use them in more realistic projects. So I would say again, I mean, it’s a kind of platform of ideas.”

Joined Mr. Danza: “Even more than that, if I can add, is that I think we can get back even more than two lines on the production car. It’s more the creativity level of the guys raised so much that everybody gets inspired by that, even the rest of the team. So the team benefits from this sort of experiment… then we bring this creativity and emotional part into a production project. And at brand level, I think it lifts up even more the image of Hyundai to a younger generation.”

As Hyundai Motor Company Senior Vice-President and Hyundai Design Center Simon Loasby put it in a statement, “It’s not just about how (the Insteroid) looks, also how it sounds and how it makes you feel. From its bold visual language to the immersive sound experience, it’s a concept car that invites everyone to dream a little louder and smile a little longer.”

Certainly, the videogame-inspired aesthetics of the Insteroid drew not a few media practitioners and content creators during the opening day of the Seoul Mobility Show where Hyundai unveiled a couple of new models (more on those soon).

Seen through a wider lens, there is something additional at stake, as elucidated by Mr. Bretecher. “And you should notice, and I think you did, that this car is not just a car, a next car. It’s this combination of a car and the video games which we want to appeal to the younger generation… I’m quite convinced that you can grab the attention of the younger people.”

It’s important to do so, he stressed, because, “in Europe, at least, you see a dissatisfaction… many young people are not interested in cars anymore.” Mr. Bretecher added that, also in Europe, a growing number of people are not getting a driver’s license. With the Insteroid, the designers want them to feel a connection with cars — and its industry — again. From that, hopefully, passion will follow.

Mr. Danza concluded, “(Kids) used to have a car poster in their bedroom. Maybe, the Insteroid can be that poster now.”

‘Asia’s Queen of Songs’ Pilita Corrales, 85

BW FILE PHOTO

VETERAN SINGER Pilita Corrales passed away on April 12.

Her granddaughter, Janine Gutierrez, confirmed her death on her social media page. The cause of death was not revealed.

“It is with a heavy heart that we announce the passing of our beloved mami and mamita, Pilita Corrales,” said Ms. Gutierrez in her post.

She added that Ms. Corrales (whose full name was María del Pilar Corrales y Garrido) “touched the lives of many, not only with her songs but also with her kindness and generosity,” both within the entertainment industry and with her loved ones.

Born on Aug. 22, 1939 in Lahug, Cebu, the singer, actress, and comedienne started her career at age 16. She topped music charts in the Philippines and globally, her most well-known songs including “A Million Thanks to You,” “Kapantay ay Langit,” “Rosas Pandan,” “Usahay,” and “Matud Nila.”

She released over a hundred albums in the course of her career. She earned a Lifetime Achievement Award from the Philippine Association of the Record Industry and was honored with a Doctorate in Music by the University of Visayas for her contributions to Philippine music.

With a clear voice and powerful singing style, Ms. Corrales is regarded as one of the foremost singers of the Philippines, her signature being the dramatic bending of her back while singing. Upon winning the Tokyo Music Festival in 1972, the singer was given the moniker “Asia’s Queen of Songs.”

There was an outpouring of tributes on social media by fellow musicians. Janno Gibbs, who collaborated with the veteran singer to remake “Kapantay ay Langit” in 2002, remembered her excitement to make a music video for the song. “Your voice stayed golden till the end,” he said in his post. Raymond Lauchengco shared in his tribute: “I love you, Tita Pilita. I will forever be grateful that I got to know someone as great and as kind as you!”

For Martin Nievera, the Filipina icon’s impact is unrivaled. “Thank you for giving me my first pair of wings. Because of you I could fly into my dreams. Now I ask the entire Showbiz industry to bend the ‘Pilita bend’ with me in honor of a legend; an icon,” he said in a post.

Ms. Corrales is survived by her two children, Jackie Lou Blanco and Ramon Christopher “Monching” Gutierrez. A documentary on her life is in the early stages of development, produced by her granddaughter Ms. Gutierrez and directed by filmmaker Baby Ruth Villarama.

Her wake is ongoing until April 16 at The Heritage Park, Fort Bonifacio, Taguig. — Brontë H. Lacsamana

Concluding the PhilHealth oral arguments

SUPREME COURT Chief Justice Alexander G. Gesmundo led the 2nd oral arguments on the proposed PhilHealth P90-billion fund transfer on Feb. 25, 2025. — PHILIPPINE STAR/JOHN RYAN BALDEMOR

Nine months after the first Supreme Court petition challenging the constitutionality of the PhilHealth (Philippine Health Insurance Corp.) fund transfer was filed, oral arguments on the petitions finally came to an end on April 3.

Petitioner groups led by Senator Koko Pimentel, the Makabayan bloc, 1SAMBAYAN Coalition, and the Federation of Free Workers (FFW) argued that Section 1(d) of the 2024 General Appropriations Act (GAA) and Department of Finance (DoF) Circular 2024-003 implementing the said provision directing PhilHealth to return P89.9 billion of its fund balance to the National Treasury violated the 1987 Constitution, the Universal Healthcare (UHC) Act of 2019, and the Sin Tax Reform Laws of 2012 and 2019 (RA 10351 and RA 11346).

Over the five oral argument hearings, the Court didn’t only tackle the legal and constitutional issues of the fund transfer, but also dwelled on the moral issues and the implications of the transfer on PhilHealth’s role as the country’s social health insurance provider and strategic purchaser of healthcare in implementing UHC.

From the very first hearing, Associate Justice Amy Lazaro-Javier went to the heart of the matter: Section 11 of the UHC Act, which clearly states that no portion of the PhilHealth reserve funds shall accrue to the general fund of the National Government, and that when the reserve fund hits its ceiling, the excess must be used to increase benefits or reduce the amount of members’ contributions.

Associate Justice Lazaro-Javier repeatedly noted that the UHC and Sin Tax Laws are clear: PhilHealth funds should be exclusively used for its programs and not for other purposes. She also noted that of the government projects funded by the PhilHealth fund transfer, some, like the Panay-Guimaras-Negros Island Bridges, were already fully funded.

For its part, the DoF, through Secretary Ralph Recto, defended its actions by arguing that the diverted PhilHealth funds that were used for infrastructure projects were still beneficial to health, given that patients badly need roads to access healthcare. The Department of Health (DoH) also noted that some of the diverted PhilHealth funds went to health programs like health facility enhancement.

But, as Associate Justice Lazaro-Javier noted, the Sin Tax Law is clear: tobacco and sweetened beverage excise taxes must go to PhilHealth (not the DoH, given that the DoH is responsible for population-based healthcare and PhilHealth is responsible for individual-based healthcare). Although 78% of the P60 billion that PhilHealth remitted to the National Treasury financed health projects, these have separate line items in the budget which should be funded by the DoH and not PhilHealth.

Secretary Recto argued that the PhilHealth fund transfer was what the country needed for fiscal responsibility. But as counsel for petitioners, Makabayan chair Neri Colmenares, argued, “Fiscal responsibility ends when it transgresses the Constitution.”

The government further justified the transfer of funds by arguing that tobacco and sweetened beverage excise tax revenues are only “soft earmarked” to PhilHealth — when sin taxes are collected, the funds form part of the general fund and do not go towards a special account in the general fund or an SAGF. Associate Justice Benjamin Caguioa contested this practice, saying: “If the sin tax laws already determine the source and use of funds to implement the UHC Act, even if the funds pass through the GAA, their character as earmarked for a special purpose remains intact… in order to preserve the special funds that are declared by law to be used only for a specific purpose, wouldn’t it be better to set them aside from the general fund? We should put guardrails so they are not used for a purpose other than the purpose they were levied for.”

Several Justices asked questions on the morality of the transfer, including Associate Justice Samuel Gaerlan, who asked questions his household help had asked him on the matter. Justice Gaerlan asked: Who does PhilHealth belong to? Why did the government take away members’ contributions? Is the country close enough to fully realizing universal healthcare to have “excess” funds to begin with?

The government, in its responses to Associate Justice Gaerlan’s questions, said that PhilHealth is hinged on social solidarity where the healthy pay for the healthcare of the poor and those with the ability to pay subsidize the healthcare of the poor. This very concept of risk sharing and resource pooling is what makes the fund transfer not only illegal, but immoral.

Petitioners highlighted that six years into UHC’s implementation, we are far from achieving the law’s aspirations as out-of-pocket spending remains high and provincial health system integration and health information systems, among others, remain a pipe dream. The immorality of the transfer was highlighted even further when Associate Justice Jhosep Lopez shared his own experience in 2022 when he was diagnosed with esophageal cancer and had to raise P7 million to pay for his surgery, only P50,000 of which was funded by PhilHealth.

PhilHealth said that it has ramped up benefit expansion in the past year, a feat that the DoH and DoF take pride in and chalk up to the pressure of the fund transfer. An improvement in efficiency, however, should not be celebrated if it came at the expense of forgone healthcare funds that could have saved the lives of the poorest of the poor.

Petitioners and respondents were asked to submit memoranda not more than a month after April 3. While we wait for the final decision of the Court, attention has to be brought to the 2025 budget, branded by advocates as “the most corrupt budget in Philippine history,” and the Supreme Court petition challenging the zero-budget given to PhilHealth in the 2025 GAA.

To quote Associate Justice Benjamin Caguioa’s closing statement during the oral arguments on April 2: “We have seen the many years, from 2003 all the way up to 2019, of discussions, staff work, interpellations, deliberations, extensive and thorough study — in order to come up with a Universal Health Care Act. A law that, in my view, has a particularly good design in establishing funding and sustainability. And all of that, all of it, gets undone by a one-sentence insertion in the 2024 GAA. Don’t you think there is something wrong [with] that?”

 

Pia Rodrigo is strategic communications officer at Action for Economic Reforms.

Fami-Li ties

The Li 9 is Li Auto’s flagship offering — a luxurious six-seater full-size SUV. — PHOTO BY JOYCE REYES-AGUILA

Li Auto enters Philippine market with 2 SUVs

By Joyce Reyes-Aguila

CHINESE AUTOMOTIVE manufacturer Li Auto selected the Philippines as its first Southeast Asian location for its strong family ties. “(It) aligns perfectly with our vision,” stated Stone Yu, chief executive officer of the brand’s official dealer HomeAuto, Inc., in a release. “They will appreciate the unique blend of luxury and technology that Li Auto offers. The local market presents a significant opportunity for us with its increasing awareness of electric vehicles and interest in modern technology.”

The brand is initially offering two plug-in hybrid electric vehicle (PHEV) sport utility vehicles (SUVs) locally: the five-seater Li L7 and six-seater full-size flagship model, the Li L9. “All our cars are family SUVs, and our designs have family users (in mind),” Home Auto, Inc. Marketing Director Emma Qiao told “Velocity” in an exclusive interview.

“We noticed that people here prefer larger SUVS, and ours perfectly target the premium sector. All in our product portfolio are SUVs. We’re focused on this position. Notice the halo lights in front of the vehicle? They are unbroken points, shaped like a hug for the family.”

The Li L7 reportedly has a combined driving range of 1,360km and a pure electric range of 286km, with the ability to go from zero to 100kph in 5.3 seconds. Power is rated at 330kW, torque at 620Nm.

The SUV’s spacious interior is designed to provide a “home-like experience” to passengers with features like electric footrests and a forward-moving front passenger seat that expands the second-row leg room to 1,160mm. A bed can be created by putting down and joining the first row with second row seats as well. The Li L7 comes in three models: Pro, Max, and Ultra — all equipped with the brand’s Magic Carpet Air Suspension Pro. The Pro variant will have the AD Pro Pilot assistance with 360-degree omni-directional sensing, while the Max and Ultra have the AD Max 3D digital sensor system.

The larger Li L9 has a driving range of 1,412km and a fuel tank of 65 liters. It is equipped with a 2.3-kW battery pack. Its Pro model is currently available, with an Ultra version to be offered in the future. The SUV has expansive three-row designs and a four-seat 16-point massage feature. There is a five-screen, three-dimensional interactive intelligent cockpit, and 4D immersive audio and video system. A Gen4 OLED screen is provided for the center console and the front passenger and rear seats.

Both SUVs are built on Li Auto’s advanced REEV (range-extended electric vehicles) platform that supports dual energy sources, with the range extender functioning as a generator to power up the battery without being the main power source.

According to Ms. Qiao, “Li” stands for “leading intelligence” that is experienced by passengers through its smart driving (features), technology, and comfortable interiors.

The executive added that construction is under way for its showrooms at the Bonifacio Global City and at the Mall of Asia. “We are looking for a third location. This year, we will (also) have four service centers. And we already have the spare parts (available).” And while the brand wasn’t a part of the Manila International Auto Show (MIAS), Ms. Qiao said Li Auto Philippines customers can look forward to displays in other malls in the metro.

Li Auto was founded in 2015, with sales reaching 500,508 vehicles in 2024, marking a 33.1% increase from the previous year.

Nordeco to seek legal remedies over franchise areas

JEROME CMG-UNSPLASH

NORTHERN DAVAO Electric Cooperative, Inc. (Nordeco) said it will explore all legal options to defend its franchise areas following the passage of a law allowing Davao Light and Power Co. (DLPC) to operate in additional areas.

“Nordeco strongly opposes this law and shall pursue all available legal remedies to defend the sanctity of the cooperative’s franchises, the welfare of its member-consumer-owners, and the integrity of the rural electrification program,” the cooperative said in a statement over the weekend.

Republic Act (RA) No. 12144 allows Samal Island, as well as the municipalities of Asuncion, Kapalong, New Corella, San Isidro, and Talaingod in the province of Davao del Norte, and the municipalities of Compostela, Laak, Mabini, Maco, Maragusan, Mawab, Monkayo, Montevista, Nabunturan, New Bataan, and Pantukan in Davao de Oro, to be included in DLPC’s franchise areas.

House Bill No. 11072 lapsed into law on April 6 without the signature of President Ferdinand R. Marcos, Jr.

“The enactment of this law by the inaction of the President raises significant legal concerns, particularly regarding potential violations of established franchise boundaries, as the Supreme Court has declared that franchises are property rights under the constitutionally guaranteed due process clause,” Nordeco said.

The cooperative said that the law “directly affects” its contractual obligations in the areas as mandated by Presidential Decree No. 269 and reinforced by the Electric Power Industry Reform Act and RA No. 10531, known as the National Electrification Administration Reform Act.

“We urge our member-consumer-owners to keep calm, continue your support and patronage of the cooperative as this will pass and we can all overcome this challenge as we did in decades,” the cooperative said.

“Nordeco stands firm in its position to uphold its valid and existing franchises to protect the interests of the member-consumer-owners it serves. We will not yield even an inch of Nordeco’s franchises,” it added.

Nordeco, which serves parts of Davao de Oro and Davao del Norte, was established to provide electricity to urban and remote areas, based on its website. Its franchise area is adjacent to Davao Oriental Electric Cooperative, Inc. in the western part, Agusan del Sur Electric Cooperative, Inc. in the northern part, and privately owned DLPC in the eastern part.

DLPC, one of the distribution utilities of Aboitiz Power Corp., is the country’s third-largest electric distribution utility in terms of customers and annual kilowatt-hour sales.

It holds a legislative franchise to build, operate, and maintain a power system in Davao City, Panabo City, and the municipalities of Carmen, Dujali, and Santo Tomas in Davao del Norte for 25 years or until September 2025.

The franchise term was extended for another 25 years or until September 2050 under RA No. 11515.

Sought for comment, DLPC said it has yet to receive official communication from the Office of the President or the concerned national government agencies.

“In the meantime, we are staying focused on delivering reliable and affordable electricity across all areas we serve,” the company said. — Sheldeen Joy Talavera

Inflation expectations, market jitters heighten Fed’s dilemma

REUTERS

WASHINGTON — Soaring consumer inflation expectations, driven to a level not seen since the early 1980s, coupled with jittery markets and rising US Treasury yields on Friday amplified the US Federal Reserve’s dilemma in determining whether the economy is facing a new price shock or headed for a downturn.

With households, businesses, and global investors adjusting fast to the implications of President Donald J. Trump’s aggressive import tariff policies, Fed policy makers said the outlook has grown increasingly difficult to predict as they took stock of recent market moves and an unsettling surge in consumer attitudes about upcoming inflation.

“It’s hard to know with any precision how the economy will evolve,” New York Fed President John Williams said in the text of a speech to the Puerto Rico Chamber of Commerce that included estimates of growth falling under 1% this year, inflation reaccelerating to as high as 4%, and the unemployment rate rising to as much as 5% — bad outcomes for a central bank that wants to keep inflation low and employment high, and a potentially sharp blow to US households’ spending power.

“Given the uncertain effects of recently announced tariffs and other policy changes, there is an unusually wide range of outcomes that could transpire,” Mr. Williams said.

In the worst case, the spike in the short-term outlook for inflation among consumers begins to infect the long-term view, and spreads into market-based measures that have so far remained, in the view of Fed policy makers, consistent with the central bank’s 2% inflation target.

Fed policy makers put a premium on keeping long-term inflation expectations in check, but are also watching the steady rise in year-ahead expectations that new data from the University of Michigan on Friday showed had soared to 6.7% in the wake of Mr. Trump’s April 2 reciprocal tariffs announcement.

A surge in inflation expectations would threaten the progress the Fed has made in controlling a pandemic-era rise in prices, and could also sideline the central bank from providing support for an economy facing new risks, with markets struggling to find footing.

“The Fed or Treasury stepping in should be done reluctantly, should be done when it is only truly needed,” said Minneapolis Fed President Neel Kashkari, who led the Troubled Asset Relief Program as a US Treasury official during the 2007-2009 financial crisis.

“I think we should be very cautious about taking moves that could demonstrate a weakening, which I don’t think is there, to the Fed’s commitment to getting inflation down,” Mr. Kashkari told CNBC.

SHIFT IN INVESTOR PREFERENCES
The new University of Michigan data continued a four-month rise in year-ahead inflation expectations among consumers and a drop in consumer sentiment that has crossed party lines.

It was a combination of high inflation and high unemployment that led former Fed Chair Paul Volcker in the late 1970s and early 1980s to put the priority on inflation control with punishing interest rates that triggered a recession.

St. Louis Fed President Alberto Musalem said that Friday’s University of Michigan consumer survey, which showed longer-term consumer inflation expectations surging to the highest level in more than 30 years, was a “notable” exception to other data he feels indicates longer-term inflation expectations still anchored.

“But if the public begins to expect inflation will remain high over the long term, the job of restoring price stability and maximum employment would be much more difficult,” Mr. Musalem said.

The implication for monetary policy — of interest rates at least left on hold even if the economy stutters as many now expect — highlights the crossroads the Fed may be approaching at a time when there has been speculation about market intervention or even emergency rate cuts to restore eroding confidence.

Mr. Kashkari, in the most explicit comments yet from a Fed official about a possible emergency response to the volatility that has torn across markets in response to Mr. Trump’s tariff barrage, said it would take a clear emergency in the financial system for the central bank to intervene.

“If there’s a dislocation — I’m not forecasting this, but if there were a dislocation — we have the ability to smooth out that dislocation,” Mr. Kashkari said. “But I’m not seeing big dislocations yet. I’m seeing some stresses, but markets seem to be adjusting.”

Though “markets are continuing to function well,” Boston Fed President Susan Collins told the Financial Times, the central bank “does have tools to address concerns about market functioning or liquidity should they arise.” Ms. Collins noted that the Fed has brought those tools to bear quickly in past instances. “We would absolutely be prepared to do that as needed,” she said.

Since Mr. Trump’s tariff announcement on April 2, US stock and Treasury prices have plunged at the same time — a potentially worrisome sign of investors turning away from US assets more broadly.

A pause on some of Mr. Trump’s planned import taxes has done little to reverse the shock.

The yield on the benchmark 10-year Treasury bond has risen a hefty 60 basis points over the past week, and the S&P 500 index has fallen about 13% since hitting a peak in February, before the scope of the tariff plans became clear.

More typically, US Treasury yields fall in times of stress as investors seek a safe place to park cash.

Mr. Kashkari said investors might be turning away from the US, whose deficit in goods trade Mr. Trump is trying to shrink.

“There’s a lot of complexity,” the Minneapolis Fed president said, noting that the dollar also had been weakening.

“Normally when you see big tariff increases, I would have expected the dollar to go up. The fact that the dollar is going down at the same time, I think, lends some more credibility to the story of investor preferences shifting.” — Reuters