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NG gross borrowings slump in Sept.

BW FILE PHOTO

THE NATIONAL Government’s (NG) gross borrowings fell in September, mainly due to a decline in domestic debt, the Bureau of the Treasury (BTr) reported.

Data from the BTr showed that NG’s gross borrowings plummeted by 76.79% to P103.246 billion in September from P444.874 billion in the same month a year ago.

Month on month, borrowings were also 16.8% lower than P124.056 billion in August.

Domestic debt accounted for the bulk or 89% of total gross borrowings during the month.

Gross domestic borrowings plunged by 78.92% to P92.067 billion in September from P436.709 billion in the same month in 2022.

Broken down, the BTr raised P61.064 billion from fixed-rate Treasury bonds and P31.003 billion from Treasury bills.

Meanwhile, external borrowings jumped by 36.91% year on year to P11.179 billion from P8.165 billion. This consisted entirely of new project loans.

In the first nine months, the NG’s gross borrowings slipped by 2.28% to P1.78 trillion from P1.82 trillion in the same period a year ago.

Domestic borrowings stood at P1.38 trillion, lower by 6.86% from P1.48 trillion in the previous year.  This accounted for 77% of total gross borrowings in the nine months to September.

The BTr raised P965.828 billion from the issuance of fixed-rate Treasury bonds, P283.763 billion from retail Treasury bonds, and P126.845 billion from Treasury bills.

Meanwhile, gross external debt climbed by 17.28% to P405.741 billion in the January-September period from P345.959 billion a year ago.

This was composed of P163.607 billion in global bonds, P145.059 billion in program loans, and P97.075 billion in new project loans.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the decline in gross borrowings was likely due to the narrow budget deficit and maturing government bonds in August and September.

“The narrower budget deficit from January-September fundamentally reduced the need for the National Government to borrow,” he said in a Viber message.

In the first nine months, the NG’s budget deficit narrowed by 2.89% to P983.5 billion from P1.01 trillion a year ago. This was also 11% lower than the P1.106-trillion program for the period.

“Some frontloading of borrowings earlier this year when interest rates were still lower also reduced the latest National Government borrowing data,” Mr. Ricafort added.

Oikonomia Advisory & Research, Inc. President and Chief Economist John Paolo R. Rivera said that high interest rates also reduced the capacity to borrow.

The Bangko Sentral ng Pilipinas (BSP) delivered an off-cycle 25-basis-point (bp) rate hike in October, bringing the benchmark rate to a 16-year high 6.5%. Since May 2022, the central bank has hiked rates by a cumulative 450 bps.

“Data from the previous months have shown underspending for many agencies which prompted them to spend instead of borrow. Other than that, reduced borrowing may indicate that there are funding sources available besides borrowing,” Mr. Rivera added.

For 2023, the National Government set its borrowing program at P2.207 trillion, consisting of P1.654 trillion from domestic sources and P553.5 billion from foreign creditors. — Luisa Maria Jacinta C. Jocson

Short selling debuts in PHL after a 27-year wait

BLOOMBERG

AFTER a nearly three-decade wait, traders will finally be able to short-sell stocks in the Philippines.

A total of 52 stocks and one exchange-traded fund, including all the equities on the benchmark gauge, will be available for short selling on Monday after regulators signed off on a proposal first made by the Philippine Stock Exchange, Inc. (PSE) in 1996.

“Without short selling or any index futures, we will be a long-only market, so if there’s uncertainty on the economy, the political situation or even in emerging markets, they will all sell,” PSE President Ramon S. Monzon said in an interview. “With short selling, they can stay here and hedge,” he said, referring to foreign investors.

The Philippines is embracing short selling just when regional peers such as China and South Korea are tightening control over it with emerging markets under pressure from higher US rates. Mr. Monzon is seeking to revive interest in a market where average daily stock transactions have slumped by almost 40% in the past decade, and foreign equity investments are set to shrink for a sixth year.

“It’s definitely a step in the right direction and about time,” said Conrado Bate, president at COL Financial Group, Inc., the nation’s biggest online stock brokerage. It will take time for investors and brokers to be familiar with shorting equities, he added.

For the debut, the Philippine Depository and Trust Corp. is the only licensed lending agent that can provide shares that it does not own for short selling. Other brokers can lend out shares that they own to clients or borrow stocks that they do not have from the depository for a fee.

LIQUIDITY FEARS
Brokers will be able to lend out shares that they don’t own to other borrowers once they have their own lending permits. To do that, they need monitoring systems to track the shares. But brokers aren’t in a rush to become lending agents due to the costs required, according to Alex Dauz, president at Maybank Securities’ Philippine unit.

The benchmark has declined nearly 9% in 2023, among the worst performers in Asia. Foreigners have withdrawn nearly $6 billion from the country’s equity markets since 2018.

The ability to short-sell may not be enough to lure back global funds. “Liquidity has been one of the key constraints to foreign investors to build large positions in the Philippines stock market,” said Ernest Chew, portfolio manager for Southeast Asia equities at BNP Paribas Asset Management.

“Short selling might cause more unfavorable volatility particularly in a market with lower liquidity,” he said. — Bloomberg

PHL on track to hit medium-term targets — Diokno  

Finance Secretary Benjamin E. Diokno — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINES is on track to achieve its growth and fiscal targets in the Medium-Term Fiscal Framework (MTFF) due to the “better-than-expected” revenue and spending performance, Finance Secretary Benjamin E. Diokno said.

“Specifically, the debt-to-GDP and deficit-to-GDP ratios are likely to be less than forecasted in the MTFF,” he said in a statement on Sunday.

As of end-June, the government’s debt as a share of GDP stood at 61%, still above the 60% threshold considered by multilateral lenders to be manageable for developing economies. The government targets to end the year with a 61.2% debt-to-GDP ratio and bring it below 60% by 2025.

Meanwhile, the deficit-to-GDP ratio stood at 4.8% as of end-June. The government has set a budget deficit ceiling of P1.499 trillion for 2023, equivalent to 6.1% of the GDP.

The Development Budget Coordination Committee (DBCC) said on Friday it “maintains optimism” on reaching its macroeconomic goals this year.

The DBCC held a special meeting on Friday but did not make any changes to its macroeconomic assumptions or growth targets.

The Department of Budget and Management (DBM) said that the committee is scheduled to meet within the first week of December for a final review of its macroeconomic assumptions and fiscal program this year.

The DBCC said it expects to exceed its revenue target this year. “The emerging total revenue collection for 2023 is estimated to be P3.84 trillion to P3.9 trillion, which is above the P3.73-trillion approved DBCC level for the year,” it said.

Government revenues rose by 6.79% to P2.84 trillion in the January-to-September period, surpassing by 2.98% its P2.76-trillion revenue program. As of end-September, revenue collections already accounted for 76.1% of the full-year program.

Meanwhile, the DBCC said that government expenditures are expected to improve in the fourth quarter due to agencies’ accelerated spending and implementation of projects.

The National Government disbursement rate rose to 98.9% as of September from 93.4% as of June.

Data from the Treasury showed that state spending increased by an annual 4.12% to P3.82 trillion in the nine-month period. However, it missed its P3.86-trillion target by 1.06%.

In July, agencies have been ordered to draft catch-up plans to address low budget utilization, after a 7.1% contraction in government spending contributed to the weaker-than-expected 4.3% gross domestic product growth in the second quarter.

Meanwhile, analysts said that while current macroeconomic targets are still doable, the government may need to introduce some reforms.

“If the reforms needed to bring inflation back to (2-4%) target and if the public sector spending commitments are delivered, the goals still look viable,” BPI Lead Economist Emilio S. Neri, Jr. said in a Viber message.

Reforms that will address regulatory bottlenecks and improve ease of doing business may boost private sector confidence, he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that any downward revisions made would only be slight, especially on economic growth.

Economic managers are currently targeting 6-7% GDP growth for this year.

“If a revision is made, I think full-year 2023 growth at 5.8% has a higher probability than 6%,” Bienvenido S. Oplas, Jr., president of a research consultancy and of the Minimal Government Thinkers think tank, said in a Viber message.

Mr. Ricafort said economic growth will be driven by improved labor market figures, overseas Filipino worker remittances, and manufacturing data. — Luisa Maria Jacinta C. Jocson

Greenhouse gas emissions from PHL land transport to quadruple by 2050

The World Bank said that phasing out old public utility vehicles (PUV) may significantly help in reducing emissions in the transport sector. — PHILIPPINE STAR/WALTER BOLLOZOS

GREENHOUSE GAS (GHG) emissions from the land-based transport sector in the Philippines are projected to quadruple by 2050, the World Bank said.

“Economic and population growth along with rapid urbanization has led to an increase in the number of vehicles per capita in the Philippines which will grow fivefold between year 2020 and 2025, from 114.7 per 1,000 people to 672.9 vehicles per 1,000 people,” it said in a background paper.

It noted that vehicle ownership, particularly motorcycles and tricycles, will likely increase as public transport systems remain undeveloped in the country.

“If current motorization continues, greenhouse gas emissions from land transport would more than quadruple from 25 million tons of carbon dioxide equivalent (MtCO2e) in 2020 to 147 MtCO2e by 2050, growing at an average annual rate of 5.39%,” the World Bank said.

Among land-based transport systems, motorcycles and tricycles will contribute the most to these emissions, with its share increasing to 29.6% in 2050 from 21.2% in 2020.

Light vehicles such as cars, vans, taxis, are expected to contribute 20.9% to these GHG emissions by 2050.

The transport sector accounts for 13% of the Philippines’ greenhouse gas emissions and is the largest source of urban pollution, according to the World Bank.

“Road-based transport contributes the highest share of greenhouse gas emission of about 87.3% of total transport (emissions),” the lender said.

Meanwhile, water-based transport accounted for 8% of emissions, domestic aviation contributed about 5%, and rail for 0.3%.

“The dominance of road-based transportation may well be related to the country’s relatively low levels of other modes of transport including rail and ferry services,” the World Bank said.

In terms of energy consumption, the country’s transport sector accounts for 35% of total consumption, particularly in oil. It also has the second-highest growth rate in final energy consumption.

“The transport sector has been one of the dominant sectors of final energy consumption and is on a fast-growth trajectory. The Philippine transportation sector used 12,735 kilotons of oil equivalent (ktoe) in 2019,” it added.

Due to the sector’s energy consumption and expected increase in emissions, the World Bank said there is a need to employ low-carbon strategies and practices.

“Given the relatively low motorization rate and rapid urbanization at the same time, the country has a good window of opportunity to pursue sustainable low carbon transport development,” it said.

The Philippines is targeting to reduce its greenhouse gas emissions by 75% in 2030 under its Nationally Determined Contribution as part of its commitment to the Paris Agreement.

The World Bank said that it would be “very challenging” for the Philippines to achieve the target.

“To achieve the target of 75% reduction, the greenhouse gas emission from the transport sector will need to follow a different trajectory by reaching an average of 71% reduction per year,” it said.

“To achieve net-zero emission from land transport by 2050, the Philippines needs to completely decarbonize the sector by converting all land transport to electric vehicles (EVs) and utilizing 100% RE (renewable energy) in power generation, or use of biofuels for non-EVs,” it added.

The multilateral lender recommended that the Philippine government encourage more private sector investments in low-carbon transport initiatives by improving the overall environment for public-private partnerships.

Meanwhile, the World Bank noted that phasing out old public utility vehicles (PUV) may significantly help in reducing emissions in the transport sector.

“Currently, plenty of public utility vehicles as old as 20 years and above are still in operation in the country, resulting in a lower overall fuel economy in the sector,” the lender said. “Thus, implementing a vehicle retirement policy together with improving new vehicle standards can have significant benefits towards emissions reduction.”

The World Bank said that ramping up the electrification of mass transit will also substantially reduce emissions by 2050, especially if “all mass transit fleets are using 100% renewable electricity.”

“Another opportunity is the electrification of the vehicle fleet. The full implementation of the government program requiring 5% electrification of government, commercial and public transport fleets will contribute a 2.4% greenhouse gas emission reduction,” it added.

The transition of public utility vehicles to electric variants would also require $1.5 billion subsidies to achieve cost parity.

“On top of this, the bulk of the necessary investment needed to support this transition would come from the construction and installation of charging stations, which is estimated to cost around $100.2 billion, distributed until 2040. While this is such a huge number as of writing, technology developments and demand uptakes in the next few years can significantly reduce the costs,” the multilateral lender said. — Luisa Maria Jacinta C. Jocson

15 years and a P20-million bra

ANTHONY RAMIREZ has been designing for celebrities for 15 years. Among his favorite clients are LGBTQ+ TV host Vice Ganda, actresses Nadine Lustre and Kathryn Bernardo, and beauty queen Celeste Cortesi, he said during a group interview after his Oct. 18 show. For that show, he tapped into a current fantasy: the 1990s-era socialite.

Mr. Ramirez is riding on the Gen Z wave of ‘90s nostalgia as well as old money style, which explains the sleek bobs most of the models sported on the runway. For the clothes, he used a color palette of pastels and neutrals.

The show opened with a glittering bikini top with pants, and a shawl wrapped around a bag, which the designer said he is getting into (he also said that the shoes for the show were his design, and that he’s definitely thinking about going into that field).

The ’90s had a touch of nostalgia for Old Hollywood glam if we’re judging from red carpet looks from that era, so that reference was not lost in a white sheath dress accompanied by a trailing wrap. The designer used velour and velvet, also a ’90s staple, seen on suits and coats on both men and women.

A male model went down the runway in a bronze jumpsuit with tuxedo lapels, its silhouette reflecting loose and easy styles. Another bronze dress felt like one seen in a Marilyn Monroe movie, and more dresses followed ‘90s red carpet styles (a lavender dress reminded one of a dress worn by Uma Thurman). A sky blue number on a woman featured another ‘90s detail, corsetry details (thanks, Madonna). More outfits with these hints were seen on the runway. With fuchsia suits and romantic dresses paired with bare midriffs, it seemed like a ’90s magazine spread come to life.

Still, we saw local details like a capiz (windowpane oyster) body chain and a capiz skirt.

The designer did remark that he was moving on to more elegant directions. We pointed out how some of the outfits could be quite revealing, but Mr. Ramirez said, “That’s the most controlled hubadera (stripper). I can do more!” When his use of trails and trains were pointed out, the designer said: “We just want to add drama.”

We’re not ignoring the elephant in the room here: the P20-million bra. This was made in collaboration with jewelry brand Viera. “I designed a bra, and I asked for the diamonds,” the designer said.

The bra was worn by a model under a white silk shirt and a black ballgown-length skirt. Upon closer inspection backstage, it was made of two small triangles studded with diamonds, joined by several diamond strips forming a network over the model’s bosom. Jo Ann Bitagcol, the Filipina supermodel of the 1990s, also walked the runway while wearing serious jewelry: her dress was held up by a long diamond chain, from the same brand.

The models finished the show while walking to The Verve’s “Bittersweet Symphony.”

This collection reflects many changes in direction for the designer: he recently moved his atelier from one part of Quezon City to Horseshoe Village, moving into a house built in the 1960s. There was a light drizzle on the day of the show, putting a damper on attempts to hold the show in the garden, designed to mimic the set from Meet Joe Black (which featured Claire Forlani as a 1990s socialite).  They eventually did hold the show outdoors, but this reporter stayed inside. Perhaps the little wrinkles of the day were telling of the designer’s method: “I create clothes based on my emotions for that day.” — Joseph L. Garcia

Two to three initial public offerings likely next year

BW FILE PHOTO

THE Philippine Stock Exchange (PSE) could see two to three initial public offerings (IPOs) next year, the top official of an investment house said.

“Realistically, I see about two to three IPOs,” BDO Capital and Investment Corp. President Eduardo V. Francisco told BusinessWorld in a recent roundtable.   

“Five IPOs are already optimistic because the first half will be muted if rates are still high. If the rates don’t go down, no one would do an IPO… Those might all come in the second half of next year,” Mr. Francisco added.   

Three companies conducted IPOs this year, namely Alternergy Holdings Corp. in March, Upson International Corp. in April, and Repower Energy Development Corp. in July.

This is well below the PSE’s target of 14 IPOs this year amid unfavorable market conditions.

The PSE index closed at 5,989.27 on Nov. 3, down by 577.12 points or 8.79% from its Dec. 29 finish of 6,566.39.

Persistently elevated inflation has caused the Bangko Sentral ng Pilipinas (BSP) to keep its benchmark rates high.

In its first policy adjustment since March, the BSP on Oct. 26 raised its key rate by 25 basis points (bps) to a 16-year high of 6.5% in an “urgent” move to anchor inflation expectations.

Philippine headline inflation accelerated for a second straight month to 6.1% in September. This brought the nine-month average to 6.6%, still above the BSP’s 5.8% forecast and 2-4% target for the year.

Mr. Francisco said possible IPOs by next year include Maynilad Water Services, Inc., Citicore Renewable Energy Corp., and the local subsidiary of Australian-Canadian mining firm OceanaGold Corp. 

“For Citicore, it has a chance because there is demand from institutional investors. There are investors who might invest there regardless of the yield because they are looking at long-term pay rather than dividend yield,” he said.

“Maynilad’s IPO has a chance. It is required by law. For OceanaGold, it is also required by law and also they are very profitable, so there is a chance that it would push through,” he added.

Maynilad has to list on the local bourse by 2026 as part of the terms of its franchise and revised concession agreement with the government, Metro Pacific Investments Corp. (MPIC) Chairman, President, and Chief Executive Officer Manuel V. Pangilinan said in September.

Maynilad is managed by a joint venture among MPIC, DMCI Holdings, Inc., and Marubeni Corp. The water concessionaire provides water and wastewater service for Metro Manila’s west zone and nearby areas. 

OceanaGold is also mandated to list its local unit, OceanaGold Philippines, Inc. (OGPI), on the PSE under its 25-year Financial or Technical Assistance Agreement (FTAA) with the government. 

OGPI operates the Didipio gold and copper mine in Nueva Vizcaya. OceanaGold announced in July 2021 that its FTAA with the government had been renewed. 

Meanwhile, Citicore Renewable Energy President and Chief Executive Officer Oliver Y. Tan said in September that the company is aiming to go public by next year and is already preparing its registration statement. — Revin Mikhael D. Ochave

One of the world’s priciest fabrics may be sitting in your backyard

LHASA APSO — GILSON GOMES-UNSPLASH

IN THE summer of 2021, Ugo Apuzzo and Floriano Bollettini spent months crisscrossing Italy in search for what they believed was the perfect fabric. Each day, as part of their program at École des Hautes Etudes Commerciales de Paris, they’d meet with potential prospects and, between espressos and glasses of Chianti, try to convince them that they should save the trimmings that would otherwise be tossed.

Their efforts reaped dividends five month later. Retracing their steps, the men collected nearly a ton of animal hair. The commercial spinners in Italy that they brought it to told them it was better than fine cashmere.

But it wasn’t the hair of sheep or goats or alpaca. It wasn’t even vicuña, one of the finest, most expensive wools in the world used by top fashion houses like Zegna, which weaves it into expensive sweaters.

Chiengora — the art of turning dog hair into textiles — has lived in relative obscurity for decades, coveted by hobbyists and fanatics. But efforts are underway to turn the unlikely fiber into a hyper-sustainable fabric. The term is a portmanteau of chien, French for dog, and gora, borrowed from the angora breed of rabbits and goats whose hair is used to make fabrics.

“In Germany alone we have each year 1,600 tons of dog fibers that are just thrown out,” says Ann Cathrin Schönrock, a pioneering chiengora entrepreneur. “Why are we throwing these high quality fibers away instead of using it as a sustainable alternative yarn?”

The idea of turning dog hair into comfortable clothes dates back millennia. The first animals to be domesticated by humans, canines also became the first creatures willing to sit long enough for their hair to be harvested in the way sheep and goats are for wool and cashmere today. The breeding of small dogs for their hair was a cornerstone of trade among the Salish peoples of North America.

But the use of dog hair declined as sheep and mass-produced textiles became more common. For North American weavers, that was around the 19th century as European explorers and traders introduced cheaper alternatives. Colonies producing cotton and wool for textile mills around the world made the chiengora process far more expensive, compared with its peers.

Today, however, the fashion industry has become a major consumer of key resources and a contributor to pollution. Popular fabrics such as cotton typically require huge amounts of water to grow, and the environmental impact of materials such as wool and leather has come under criticism for taking up land and producing methane, which adds to global warming.

It’s led to investments in the hunt for alternative materials. General Motors Co.-backed MycoWorks, which turns mushrooms into imitation leather, is said to have raised $187 million, while Modern Meadow is trying make fake leather via vat-grown collagen. Even textiles made of algae are attracting research attention.

But the answer could already be sitting in a growing number of households. A recent survey from the American Veterinary Medical Association found that nearly half of American households had a dog, compared with 38% in 2012.

The logic is simple. Many breeds of dog shed twice a year, and their owners take them to groomers for a trim anyway. Why toss the trimmings when they can be so valuable?

A SUPERIOR BREED
The potential superiority of dog hair has long been known to a select number of material scientists. A paper from North Carolina State University 20 years ago helped pave the way by evaluating 18 different breeds, concluding even then that “chiengora may prove to be a profitable and useful fiber.” Others from academics led by Audrone Ragaisiene at Kaunas University of Technology in Lithuania found that dog hair was so warm, it could be used in socks to brave the coldest winters and help patients with rheumatic diseases.

When Surjit Ramamoorthy, an assistant professor at PSG College of Technology in India, spent long hours procrastinating by grooming Shuffney, his beloved Indian Spitz, his mother suggested he may as well make it his next research topic. Intrigued, he began research and has since written several papers analyzing strands and weaves of dog hair down to a microscopic level in an effort to find the perfect blend of properties.

Depending on the breed, dog hair can be hardier than camel hair — one of the toughest commonly farmed animal fibers — and better than wool in almost every way. One commercial spinner who worked with Ms. Schönrock says some of the material provided was so fine it could be compared to vicuña.

One of the best breeds that Mr. Surjit has worked with is Lhasa apso — so much so that he wrote an entire paper focused on the breed. The dogs are short, but their hair is long, with better insulation. “If someone can make this commercial, it would be so good, because there’s a lot of scope for using dog hair,” he says.

Golden retrievers, on the other hand, may be popular as pets, but they produce hair with less wax and stronger fibers and, Mr. Surjit says, their coats are shorter than you might expect, resulting in less usable material.

The American Kennel Club suggests that dogs with long undercoats, such as the Chow Chow and Bernese Mountain Dog, work best. Each strand should be at least an inch and a half long. Samoyeds are especially prized by hobbyists for their soft white coats.

On the craft website Etsy, searches for chiengora turn up hundreds of results. They run the gamut from spinners who turn bags of your pet’s hair into yarn to knitters hawking socks and beanies made from the material.

There, handspun Samoyed yarn can set you back $420 a kilogram — more than double the price of fine cashmere, which is prized by luxury textile mills like Loro Piana. That’s still below the €600 ($636) per kilogram cited by the 2022 edition of industry textbook Fibers as the “typical price” of chiengora. A kilogram of cashmere, by comparison, runs €40 to €120.

THE DUAL BARRIERS
Despite the clear benefits of weaving dog hair into textiles, the material has yet to take off commercially.

The main issue is twofold. One is cultural: When the idea comes up in conversation, many think of Cruella de Vil, the fictional villain of One Hundred and One Dalmatians who covets the eponymous pets for their spotty fur. But proponents say most people quickly get past their inhibitions once they understand that the process is harmless.

Rachel Casey, a veterinarian and director of the UK dog welfare charity Dogs Trust, said she could understand its appeal. Over the past few decades, dogs have shifted from being guards and ornaments to members of the family, a trend intensified by the pandemic. Owners are looking for ways to feel even closer to their pets.

“It’s probably the increasing number of dogs, but also the changing role of dogs in people’s lives, that have led to the increase” in interest in chiengora, Ms. Casey says. “From a dog health point of view, combing is actually a good thing to do, so it’s clearly something that could be a really sustainable way of creating yarn.”

The bigger issue, though, is gathering it at scale. Where other fibers have generations of harvesters collecting hairs in exactly the right way, getting commercial quantities of chiengora would require teaching households and groomers exactly how to correctly comb their pets, in the same way cashmere goats are today.

A dog’s outer coat is typically too tough; hair on the foot can be too short. The cleaner and softer undercoat around the chest, however, is an ideal source. Once the hair is combed, it’s sorted through a process called carding to align the strands so it can be processed into yarn and eventually weaved.

An easier alternative to combing would be using clipped hair from grooming salons — but there the problem is consistency. You don’t want to mix the silken threads of a Lhasa Apso with the notoriously matted curls of a poodle, all at wildly different lengths.

Over the next two years, Mr. Surjit aims to use industrial techniques to soften the hair from such suppliers. That could involve using chemicals to wash the hairs and reduce their spikiness — regardless of which coat they come from — so that they’re soft to the touch. He says he’s already solved some of the other issues by blending dog hair with synthetic materials: A mix of 75% Lhasa Apso and 25% polyester is an ideal cocktail of insulation and comfort. But even this approach depends on the kindness of strangers.

“There is enough material out there, but it’s not like sheep rearing, where you’ll find hundreds together,” Mr. Surjit says. His constant hunt for more Lhasa apso hair has turned every car ride into a scouting expedition. “Near my area, whenever I see one I stop my vehicle, go to the owners’ home and negotiate to cut their hair.”

After working with dog hair gathered from Italian groomers, Mr. Bollettini and Mr. Apuzzo got their Chiengora Project into the prestigious incubator Station F. Later that year, they merged with Ms. Schönrock’s company, Yarnsustain Schönrock Uhl, in 2021. While it reaped sales and publicity (and even appeared on the German version of Shark Tank), it suffered from an inability to scale.

It shuttered in April 2023, and Mr. Bollettini and Mr. Apuzzo parted ways, but Ms. Schönrock continues to try to find a way forward. Pre-sales of her book that details the best breeds and methods of gathering their hair will start from November.

Unlike Mr. Surjit, Ms. Schönrock remains wary of introducing synthetic materials into the mix. She believes that more research and education will reap the Holy Grail — pure, consistent chiengora harvested ethically and sustainably from the near-billion dogs living around the world today.

“I’m so deeply convinced this will be a legacy I can leave,” she says. She hopes her upcoming book will educate dog owners and supercharge the ethical gathering of hair at scale. “As soon as we achieve that and scale the sourcing,” she says, “we will have an unbelievably high-quality yarn.” — Bloomberg

Figaro stays bullish despite growing competition

LISTED food and beverage retailer Figaro Coffee Group, Inc. (FCG) remains bullish on their growth prospects despite increasing competition in the retail coffee market, its top official said. 

“No. Not at all, because we have a different market,” FCG Chief Executive Officer Divine G. Cabuloy said at the sidelines of a recent briefing when asked if the company is affected by rising competition in the retail coffee sector.

Ms. Cabuloy said FCG remains optimistic about its market presence as it has expanded its product offerings under the Figaro Coffee brand.

“Before, we were more of coffee products. But now, we have also captured the young crowd market because Figaro Coffee right now is not just offering coffee products — we also have other products. We have pasta, sandwiches, and rice meals,” Ms. Cabuloy said.

Jollibee Foods Corp. recently announced that it is set to bring Singapore’s Common Man Coffee Roasters to the Philippines.

The brand’s first branch, set to open this year, will be located at the Ayala Triangle Gardens in Makati

Japanese apparel retailer Uniqlo also opened on Oct. 13 its signature café Uniqlo Coffee in Glorietta 5, Makati City as part of expanding its business in the country.

For their part, FCG is eyeing to open 50 to 75 stores overall next year, with the investment for each store ranging from P8 to P13 million depending on its size, Ms. Cabuloy said.

Currently, FCG has 192 stores nationwide across its various food brands, made up of 116 Angel’s Pizza outlets, 60 Figaro Coffee stores, 10 Tien Ma’s Taiwanese Cuisine stores, and six Café Portofino establishments.    

“Per store, the investment is around P8 to P10 million. That includes the franchise package and the construction of the store. If the store has a second floor, the investment reaches P13 million,” Ms. Cabuloy said.

FCG Chief Operating Officer Michael T. Barret said their Angel’s Pizza and Figaro Coffee brands will be focused on expanding in Visayas and Mindanao. 

“For Angel’s Pizza, we are targeting Cebu, Tacloban, Leyte, and Samar in Visayas, while we are looking at Cagayan de Oro and Butuan in Mindanao,” Mr. Barret said. 

“In terms of expansion for Figaro, we are also focusing on Mindanao because there is a huge demand for coffee shops,” he added.

Currently, 70% of FCG stores across all brands are company-owned, while the remaining 30% are operated under franchises, he said, adding the company is hoping to bring back the ratio to 50% company-owned and 50% franchise stores.

FCG earlier reported that its net income rose by 133% to P462.6 million for its fiscal year ended June 30 from P198.2 million in the prior fiscal year.     

The company’s revenues jumped 75% to P4.28 billion from P2.44 billion and same-store sales climbed 6%.

Shares of FCG closed at 63 centavos each on Friday, down by one centavo or 1.56% from the previous trading session. — R.M.D. Ochave

Securing business growth with ICS’ holistic cybersecurity solutions

In today’s digital age, nearly every aspect of our lives, from socializing and shopping to work and transportation, is influenced by technology. This technology not only connects businesses more than ever before but also enhances and streamlines their operations.

However, with deeper immersion in the digital realm comes heightened vulnerability to cyberattacks. This emphasizes the crucial need for vigilance and proactive defense strategies.

Recent data from the Philippine National Police (PNP) Anti-Cybercrime Group revealed an alarming 16,000 cybercrime cases in the Philippines this year alone. Furthermore, the Department of Information and Communications Technology (DICT) reports that the country ranks fourth worldwide in terms of cyberattack frequency.

In a bid to address this, the Philippines demonstrated its commitment to cybersecurity through Proclamation No. 353, designating September and October as Cybersecurity Awareness Month. This highlights the nation’s “unwavering commitment towards a unified approach in the digital era of governance.”

The repercussions of cyberattacks on businesses are profound. From data breaches to financial losses, threats like phishing, malware, and ransomware can severely disrupt operations. The growing prevalence of hybrid work models further exacerbates these risks.

To fortify against these threats, businesses must adopt comprehensive cybersecurity measures, encompassing data encryption, firewalls, and intrusion detection systems. Crucially, employee education on cybersecurity—from recognizing to promptly reporting potential threats, and adopting secure online practices—is a vital step in safeguarding a company’s digital assets. Such initiatives dramatically reduce the likelihood of falling victim to cybercrime.

In the evolving digital landscape, integrating cybersecurity measures as core components of business operations becomes increasingly crucial. Companies seeking tailored solutions that align with their specific needs and financial capacities are best served by collaborating with experienced, reliable partners—partners not merely focused on solution implementation but also deeply committed to preventing cybercrime and enhancing cyber resilience.

Integrated Computer Systems, Inc. (ICS), a leading security-focused IT solutions provider, presents a holistic suite of cybersecurity solutions designed to shield data from both internal and external threats.

ICS’ solutions cover five critical areas: identification, protection, detection, response, and recovery.

For threat identification, ICS provides businesses with tools that uncover security gaps within networks and systems.

In terms of protection, ICS offers a gamut of services—from monitoring and safeguarding servers, web applications, networks, and endpoints, to implementing advanced firewalls, securing emails, managing user access, and amplifying user threat awareness through training.

ICS’s detection and response suite includes integrated endpoint security systems, network analysis tools for device interactions, preventative measures against cyberattacks, and streamlined security orchestration and automation.

For recovery, ICS’s arsenal includes cloud infrastructure solutions, alongside backup and recovery software, ensuring seamless data restoration without disrupting business operations.

In this digital era, where threats lurk around every virtual corner, solutions like those from ICS are more than just tools—they’re essential lifelines for businesses. With a comprehensive approach spanning identification to recovery, ICS ensures that businesses remain resilient and secure. As cyber threats continue to evolve, so must our defenses, reminding us of the ever-present need for vigilance, adaptability, and partnership in safeguarding our digital futures.

For more information, contact info@ics.com.ph or visit ics.com.ph.

 


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Adidas and Puma eye chances in soccer’s fashion moment

SECOND-DIVISION Greek football club Athens Kallithea’s campaigns show women wearing the unisex tops with satin skirts and styled as smart casual clothing to wear out to dinner — @AKFC66/X (TWITTER.COM)

LONDON — Sportswear brands like Adidas and Puma are seeking to take advantage of a flirtation with soccer by the fashion world to reach a new customer base, building in part on demand created by this summer’s successful Women’s World Cup.

With celebrities like Kim Kardashian seen attending matches and wearing soccer jerseys, clubs too spy new merchandising opportunities. One Premiership team has hired a creative director to expand its apparel offering, while Adidas in September launched an “exclusively off-pitch” apparel collection for some of the big-name teams it sponsors.

“The love-in between football and fashion is only just beginning,” said Richard Busby, Chief Executive Officer at sponsorship consultancy BDS Sponsorship.

The Women’s World Cup showed there is huge unmet demand for soccer-related merchandise for women: Nike drew a backlash from fans for not offering replica kits for England’s Mary Earps and other goalkeepers playing in the competition.

But the trend extends to fashion-conscious fans of both sexes, Mr. Busby said. “Premiership clubs have a lot of wealthy supporters but very few of the items they sell appeal to them, whether men or women.”

Second-division Greek football club Athens Kallithea is among those giving its jerseys a makeover. Its campaigns show women wearing the unisex tops with satin skirts and styled as smart casual clothing to wear out to dinner.

The ranges are designed to appeal beyond a club’s traditional fan base.

Kim Kardashian has been spotted wearing vintage Roma and Paris Saint-Germain shirts, while 20-year-old model Mia Regan paired an Arsenal shirt with a long denim skirt and boots at a Paris Fashion Week show in October.

In August, Crystal Palace hired Kenny Annan-Jonathan as creative director focused on apparel. He is expected to expand the range of clothing offered by the Premier League club.

HYPE AROUND FOOTBALL CULTURE
Adidas and Puma have long been associated with streetwear and pop culture.

But with the German companies each spending two-thirds of their annual sponsorship outlay on soccer, according to a GlobalData report published this month, football’s fashionable turn could prove lucrative.

For Nike, which also invests significantly in basketball and college sports, soccer accounts for 48% of its annual sponsorship spend, GlobalData found.

“We are experiencing hype around football jerseys and general designs influenced by football culture across streetwear and fashion,” said Puma’s global creative director Heiko Desens.

Puma is seeking to further fuel that hype. Its newest footwear collaboration with popstar Rihanna’s Fenty brand, launched last month, was a trainer inspired by cleats worn by the late, legendary Brazilian soccer player Pele.

The launch campaign featured Rihanna inside a giant de-constructed soccer ball. The shoes, priced at $170 for a silver colorway and $160 for a black and white model, sold out on Puma’s website on the day they were released.

“Puma has a higher sales exposure to women than Adidas or Nike, and the original Rihanna partnership in 2015 was really effective in helping it build strong demand and a lot of credibility with the female consumer,” said Graham Renwick, analyst at Berenberg.

“So with the relaunch of this partnership Puma will be hoping for a similar response.”

Adidas’s apparel range for Arsenal, Bayern Munich, Juventus, Manchester United, and Real Madrid, launched in September, included crop tops and dresses made in a jersey knit and featuring more subtle club branding.

“We want to cater to the needs of both the consumer who plays football actively and the consumer who is attracted by football culture,” Adidas said.

High fashion is also getting involved: in May, Italian label Prada collaborated with Adidas on soccer cleats in three colorways including white, retailing for $595 a pair.

Liverpool and Newcastle United are also seeking to hire creative directors, in a trend that could change the dynamic between the Premiership clubs and their sponsoring brands.

Athens Kallithea and Italy’s Venezia FC have used slick social media campaigns to sell apparel globally despite a smaller fanbase.

“There’s a risk of tension with existing fans whenever you start moving beyond the core culture,” said Athens Kallithea’s president and creative director, Ted Philipakos. He said teams from the Premier League and Bundesliga had contacted him to learn from his strategy.

“It’s a delicate balancing act that requires more nuance and sensibility than many big clubs tend to have,” Mr. Philipakos said. — Reuters

Improving our African Swine Fever virus surveillance

ALEKSANDARLITTLEWOLF-FREEPIK

It was a very helpful initiative by the Chairperson of the Senate Agriculture Committee, Senator Cynthia Villar, to call a public hearing on the African Swine Fever (ASF) vaccine last week. With it, we were able to focus our attention on the concerns surrounding the vaccine from Vietnam. For months now, stakeholders have heard about a significant importation of the vaccine, reportedly amounting to 3,000 doses, by a private sector firm. Allegedly, once the Food and Drug Administration (FDA) issues the importer a Certificate of Product Registry (CPR), those doses will be commercially sold to vaccinate the country’s pig inventory.

At the outset, we should feel good upon learning that perhaps we can get rid of the ASF virus sooner than expected. Unfortunately, there are ongoing concerns of the vaccine, which tell any country to take extra care before permitting its use.

Reports indicate that the vaccine had been used in Indonesia, Vietnam of course, and China. In all three, swine mortalities were observed, reportedly linked to the use of the vaccine.

The major concern can be traced to the source of the virus strain. The agent used to develop the Vietnamese vaccine was developed by USDA Agriculture Research Service (USDA/ARS). Called, the ASFV-G-ΔMGF, the agent was initially listed by the US regulator, in this case the USDA Animal and Plant Health Inspection Service (APHIS), under its Select Agent Regulatory Exclusions List. Such registration indicates it may be used for further research in the US and in this case to develop the ASF vaccine.

USDA/APHIS, however, delisted the ASF virus agents as these were evaluated to potentially pose a severe threat to animal health and animal products. However, Vietnam had already developed the vaccine and was getting started to commercialize the product.

I am for the vaccine if it is efficacious and safe to use. And this is why the regulator, the FDA with BAI (Bureau of Animal Industry), must conduct, or cause to conduct, randomized control trials on the Vietnamese vaccine. These trials must be conducted by professionals with no conflicts of interest. The stakes are large — our entire livestock industry.

These trials take some time, and there are protocols to follow to ensure the integrity of the trials. Moreover, the results of it must be publicly disclosed and reviewed by third party experts. That must happen first before a CPR is issued on the vaccine.

Critics have bewailed the poor performance of the country’s agricultural sector, especially during the administration of President Rodrigo Duterte. Of course, this can be explained by the African Swine Fever, which has nearly destroyed the industry. By 2019, we lost about 3 million heads of the country’s swine inventory and a third of a million of our breeders.

It used to be that the livestock industries (swine and poultry) had led the growth of the agricultural sector. Despite severe weather which dampened the contribution of the rice and corn industries to the gross value added of agriculture, the sector’s performance continued to float above a percent or two. But when ASF hit the country in 2019, that role dwindled, pulling down the economic performance of primary agriculture to about nil.

It would seem now that ASF would be with us for several decades. There are analysts who point out that it took Spain 30 years to get rid of the virus. When the disease hit us in 2019, it only decimated the swine industries of Luzon around the National Capital Region. A good part of the Visayas and Mindanao was spared.

Not anymore. It is affecting the entire country, except for a few island provinces with leaders passionate in conducting effective surveillance of the virus and closing its borders at the smell of it, like the governor of Cebu.

A SURVEILLANCE SYSTEM WANTING IMPROVEMENTS
In the meantime, the country must apply an effective surveillance system on the ASF virus. When the disease hit in 2019, the Agriculture department came out with several circulars on swine depopulation (AC No. 22 s. 2020), national zoning and movement plan (AC No. 2, s. 2022, amending AC No. 12, s. 2019), and the Bantay ASF Program (AO No. 7, s. of 2021).

That ASF had spread to many places in the country may be traceable to the current weak surveillance system that regulators use.

This surveillance approach is wanting for several reasons. One, it is reactive. Virtually blind with respect to the virus, regulators act when the clinical signs of the disease are observed, i.e., the pigs are dying or are sick. Two, confirmation of the presence of the disease is slow, with only a few animal disease diagnostic labs available. Three, samples used in verifying the disease are themselves carriers of the disease, risking the spread of the disease. Four, when regulators have to depopulate, they do so by zones, raising the cost to producers. Five, while producers are compensated, the amount is not readily available and below the cost of raising the sick pigs until they must be destroyed.

Incentives are all stacked in favor of just being quiet about the disease, which perpetuates the incidence.

Lastly, the implementors are few relative to the surveillance work done. This is why regulators allow a three-month validity of ASF clearances, which is just too long.

A FEW IDEAS TO IMPROVE OUR SURVEILLANCE SYSTEM
1. We must use mobile PCRs or mPCRs to conduct on-site testing, instead of waiting to observe clinical signs of the presence of the virus. The onsite testing using mPCRs generates qualitative results, evidencing the sample tested has or does not have the virus. With this device, we manage the ASF disease by exception. The device is capable of producing onsite results in at most two hours after testing. Only those with positive results are to be confirmed and analyzed for the viral load and virulence of the virus.

2. We must deputize the municipalities/cities to conduct onsite testing. This solves the lack of manpower for surveillance.

3. Municipal/city LGUs deputized to implement the surveillance system may be allowed to charge fees to recover costs.

4. The provincial LGUs must be deputized to verify positive results of onsite testing in the province with qPCRs, following World Animal Health protocols. In some provinces like Batangas, the regional animal disease diagnostic labs may serve as verifiers of the disease.

5. Samples of positive results are transported in DNA and not biological form to avoid the spread of the disease.

6. Provincial LGUs must maintain a database of the incidence of the disease in the province.

7. An ICT application is to be developed to send the testing results in real time to the province. This allows a buildup of the disease to geomap the progress of the disease in the province.

 

Ramon L. Clarete is a professor at the University of the Philippines School of Economics.

Globe’s attributable income down by 27% in Q3

GLOBE TELECOM, INC. posted an attributable comprehensive net income of P4.97 billion in the third quarter (Q3), down by 27% from P6.81 billion a year ago, amid higher non-operating charges for the period, it said on Sunday.

Globe recorded consolidated revenues of P44.27 billion in the quarter, a 3.2% increase from P42.88 billion a year ago, amid strong service revenues, its financial statement showed.

Service revenues, totaling P40.66 billion, accounted for the majority of the company’s third-quarter top line, rising by 4% year on year from P39.1 billion.

Meanwhile, its non-service revenues declined by 5% to P3.61 billion from P3.80 billion previously.

“Our third quarter results show that our telecom business performance is very much aligned to the guidance we have set. On the other hand, our pivot to a techco business is showing signs of momentum. We are happy that more of the non-telco businesses are contributing to the Group’s overall business growth and resilience,” Ernest L. Cu, president and chief executive officer of Globe, said in a statement.

Higher expenses pulled down the company’s bottom line in the period. Costs and expenses climbed by 4.2% to P38.87 billion in the third quarter, up from P37.30 billion a year ago.

“We will continue to look for opportunities to thrive amidst the macroeconomic challenges and competition. We believe that our renewed focus on innovation, collaboration, sustainability and service, backed by our unwavering commitment to network excellence are the imperatives that will keep us ahead and will pave the way for a digitally inclusive and prosperous Philippines,” Mr. Cu said.

For the first nine months, Globe’s attributable comprehensive net profit fell by 27.1% to P19.29 billion from P26.46 billion in the same period last year.

Its consolidated revenues stood at P133.79 billion in the period, 2.8% higher than the previous year’s P130.20 billion.

Services revenues made up bulk of the total at P121.1 billion, up by 2.7% from P117.96 billion last year and an “all-time high,” Globe said.

“This remarkable performance was mainly fueled by the strong contributions from its mobile, corporate data and non-telco services, which fully offset the anticipated decline in home broadband,” it added.

Non-service revenues increased by 4% to P12.73 billion in the nine-month period from P12.24 billion previously.

Meanwhile, the company invested about P54 billion in capital expenditures (capex) in the first nine months, down 27% year on year.

Most of its capex was used for data requirements to ensure reliable connectivity access, Globe said.

“Moreover, Globe built 833 new cell sites, and upgraded 5,395 mobile sites to LTE as of September 2023, to ensure seamless connectivity, high-speed data transmission, and consistent service availability across the country. The company also deployed around 175 thousand fiber-to-the-home lines, notably lower than last year’s rollout to maximize the utilization of its existing fiber inventory and this year’s reduction in capex,” it said.

“With Globe’s relentless pursuit of expanding its 5G technology nationwide, the Company has deployed 716 new 5G sites across the Philippines, increasing its 5G outdoor coverage to 97.67% of the National Capital Region and 92.06% of key cities in Visayas and Mindanao. Globe likewise logged 5.2 million 5G devices in its 5G network for the month of September 2023,” the company added.

Globe’s shares went up by P2 or 0.11% to close at P1,762 apiece on Friday. — A.E.O. Jose

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