Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 4418

Chinese EV maker launches new models, upgraded battery swaps

CHINESE electric vehicle (EV) maker Nio, Inc. unveiled two models at a glittering annual customer event on Saturday evening, expanding its lineup in a bid to grab a bigger share of the market as demand for cars in the nation slows.

At the weekend event in Hefei in central Anhui province, Shanghai-based Nio launched a revamped ES8, an iteration of the original electric sports utility vehicle it’s been selling since 2018, and a new pure electric coupe dubbed the EC7.

With a starting price of 488,000 yuan ($69,800), the coupe targets buyers who want more space as well as sporty performance. The new ES8 will start at 528,000 yuan. Deliveries are expected to kick off in May and June, respectively.

Nio Day, first held in 2017, is a gathering for corporate partners, customers and media meant to foster brand loyalty and a sense of community around the carmaker.

Nio on Saturday also presented its latest generation of battery swapping stations, which allow drivers to quickly swap out their battery for a new one instead of recharging the existing one. Each of the upgraded stations allows a maximum of 408 swaps per day, and can store as many as 21 replacement cells.

In addition, the company demonstrated a power swapping pilot for highways, with which the driver can stay inside the car and leave it all up to the vehicle to automatically plan the route for changing batteries, driving to the closest available power swap stations through intelligent navigation, completing the swap, and driving out of the service area, back onto the highway. 

About 4,000 participants from across China attended the gala, despite surging Covid cases in various cities. As many as 248 million people, or nearly 18% of China’s population, likely contracted the virus in the first 20 days of December, Bloomberg reported earlier.

In a year in which China’s major auto shows were delayed or canceled, Nio rewarded its followers not only with the new models but also with a concert featuring local pop singers, as well as short films and a charity bazaar.

Nio delivered 106,671 vehicles in 11 months this year, up almost 32% from the same period in 2021. Even so, annual deliveries are expected to miss its original target of 150,000 units given the challenges posed by the pandemic and China’s strict adherence to a Covid Zero policy for much of 2022.

The company was particularly hard hit by Shanghai’s two-month lockdown in the spring. The restrictions forced a temporary suspension of production at Nio’s plant in Hefei, and kept consumers away from showrooms.

Nio shipped only 12,098 vehicles in April and May, and by October had fallen behind on both producing and delivering thousands of vehicles due to component supply shortages and disrupted logistics caused by regional lockdowns.

The company continued to face challenges from of sick workers after China recently lifted the Covid restrictions, founder and Chief Executive Officer William Li said in an interview with BloombergTV after the show. “We and our suppliers are both affected under the latest wave,” Li said, adding that the overall supply chain “should be stabilized next March or April.”

The run of extraordinary conditions have put pressure on Nio’s progress toward turning a profit. To help mitigate spiraling costs and better control its own destiny, the company is establishing a research and development center that will concentrate on lithium-ion batteries and packing technologies. It also plans to spend around 3 billion yuan each quarter on R&D, with a focus on chips and batteries.

Li also noted panic buying of semiconductors, and called for all carmakers and suppliers to “reasonably place orders for chips.”

While China is the world’s biggest market for EVs, with almost one in every five cars sold now electric, consumer demand has been flagging. Some EV subsidies also fall away at the start of 2023 and that’s expected to make buying a cleaner car less attractive versus a gasoline model, which are still ubiquitous and affordable.

Deliveries of new-energy vehicles — pure electric and hybrid cars — to dealerships in China are expected to reach 6.5 million by the end of the year, and may touch 8.4 million in 2023, China’s Passenger Car Association said at a briefing earlier this month. But the year-on-year growth rate is slowing.

There’s also a lot more competition in China for EVs.

Warren Buffett-backed BYD Co., along with Tesla Inc., lead the market but there are scores of other companies selling electric cars. That includes SAIC-GM-Wuling Automobile Co., Zhejiang Geely Holding Group Co., Guangzhou Automobile Group Co. and Hozon New Energy Automobile Co. All told there are about 500 electric car models in China and most foreign auto brands also have an electric offering.

Nio, which has said it aims to break even in 2024, needs to expand its product lineup to better compete. Exporting its cars into Europe is also a big part of its strategy.

Following a year of modest sales in Norway, Nio will offer three models in Germany, Denmark, Sweden and the Netherlands, it said at an event in Berlin in October.

Nio’s US-listed shares are down almost 65% this year. — Bloomberg

H&M confirms it has rights to Justin Bieber merchandise

STOCKHOLM — Swedish clothes retailer H&M said on Thursday it had the rights to sell Justin Bieber merchandise it pulled from stores that week after the popstar said he had not given his approval.

“Justin’s license holder has confirmed that H&M had the right contracts in place and followed all proper approval procedures for each selected design,” H&M wrote in a statement.

On Monday last week, Mr. Bieber urged his 270 million Instagram followers not to buy the merchandise, calling it “trash” and said it was on sale without his approval. H&M pulled the items from sale.

“Out of respect for Justin, we removed the products from our site and stores, and we’re working to find the best way to make use of them,” H&M said, adding that the company had been Bieber’s merchandise partner since 2016.

H&M, the world’s second biggest fashion retailer, offered hoodies, T-shirts and sweatshirts with pictures of Mr. Bieber or quotes from his lyrics such as “I miss you more than life” from the song “Ghost.” — Reuters

A plurality for carbon neutrality

A Toyota product expert explains a Mirai cutaway at Buriram. — PHOTO BY KAP MACEDA AGUILA

Toyota insists there are many ways to get to zero

IT’S A CHILLY and windy late afternoon in Buriram.

The Thailand province, which lies about an hour by plane northeast of Bangkok, is the site of the Chang International Circuit — venue of the Idemitsu 1500 Super Endurance 2022 (or Thailand 25H Endurance Race). With participants’ cars lined up on the grid, spectators and media practitioners have descended upon the start-finish straight. It’s pretty obvious though that one car is drawing the most attention.

That’s the #S32 ORC Rookie GR Corolla concept (yes, concept) vehicle being piloted by, among other people, Toyota Motor Corp. (TMC) President and CEO Akio Toyoda. He is slated to start the grueling race (putting in a 30-minute shift) and get behind the wheel again for the finish the next day. To be clear, the hydrogen-fueled GR Corolla, along with the GR86 CNF concept (a carbon-neutral fuel vehicle) fielded with it, will not run the entire 25 hours but “the first and last few hours of the race.” The race — and others like it — are viewed as a laboratory for Mr. Toyoda (who assumes the moniker Morizo when he’s behind the wheel), along with the engineers and designers of the automaker. They’re doing earnest work on achieving a stated goal of achieving carbon neutrality by 2050.

Simply put, carbon neutrality is a state of net zero carbon where actions that redound in emissions are matched by ones to reduce or offset them. Compared to a “zero carbon” state, experts have declared that carbon neutrality is more realistic to aspire for to keep the “planet in an equilibrium.”

While most auto brands will tell you that the fullest expression of this ambition is the battery electric vehicle (and many are indeed trotting out models bearing this powertrain), Toyota politely begs to differ. The discussion is much more nuanced than we’d like to believe, the brand says.

Mr. Toyoda getting behind the wheel of a hydrogen-fueled car is just the tip of the iceberg. He’s here in the region for several other reasons: To celebrate Toyota Motor Thailand’s 60th founding anniversary, to formalize a deal with the country’s largest private conglomerate (the CP Group) which would entail working on — among other things — hydrogen-powered fuel cell transport and extracting hydrogen from biomass, and to unveil Toyota first workhorse BEV in the Hilux Revo BEV Concept and a highly modular platform called IMV 0.

The Japan-headquartered automotive giant is espousing that “multi-pathway approach” because, avers Mr. Toyoda, a specific powertrain isn’t the enemy; carbon is. And there are lots of way to get from Point A to Point B. It also makes good sense not only from a business standpoint but in terms of practicality. For while BEVs emit no carbon, a complete appraisal of electric vehicles and their impact should also examine how a grid produces the electricity in the first place. Where and while coal-fired plants remain the norm means the power produced is “dirty.”

Mr. Toyoda said in his earlier speech at the Queen Sirikit National Convention Center that Toyota will not espouse a “one-size-fits-all approach to (its) products and powertrains,” and stressed that people “need to be realistic about when society will be able to fully adopt battery electric vehicles and when… infrastructure can support them at scale.”

He added, “Just like the fully autonomous cars that we were all supposed to be driving by now, I think BEVs are just going to take longer to become mainstream than the media would like us to believe. And frankly, BEVs are not the only way to achieve the world’s carbon-neutrality goals. Personally, I would rather pursue every option, not just one, — options such as emission-free synthetic fuels and hydrogen. I still believe hydrogen is as promising a technology for our future as BEV.”

In a separate session with the press, “Velocity” asks TMC Chief Branding Officer, Lexus International President, and Gazoo Racing Company President Koji Sato about the timing of the announcements. He shares through an interpreter that the 60th anniversary of Toyota’s presence in Thailand is an important milestone for the company, and Toyota feels that there is a clear need for carbon neutrality in the country. “That’s why this is the right time to get into Thailand, if you look at the multiple pathway of Toyota… to look at viable alternatives.”

We also asked about Lexus and if there’s any plan to roll out a hydrogen vehicle as well. “Nothing has been decided yet, but the possibility is not zero.”

“Do you expect a hydrogen Lexus supercar?” Mr. Sato playfully asks me. “Yes, a hydrogen-powered LFA, please.”

But why hydrogen? For starters, it ticks the most crucial box: There’s no harmful emission. The only byproduct is water. Second, the vehicle’s range is not limited by the battery’s capacity. Testing of the hydrogen-fueled FCV Mirai in other markets has regularly yielded an eye-popping maximum of more than 1,000 kilometers on a full tank of hydrogen (the record is 1,352 kilometers, set in the US). Third, Toyota said that the technology has evolved so much that hydrogen is now extremely safe to transport, store, and use. Hydrogen can also be extracted readily from the environment — from water, from biomass (think livestock manure), and other sources. Hydrogen is simply available everywhere. “It is the Swiss army knife of energy,” according to Toyota Daihatsu Engineering and Manufacturing Co. Ltd. Executive Vice-President and Chief Information Security Officer Pras Ganesh.

Having multiple pathways to ending the dumping of carbon into the atmosphere is not a bad thing. In fact, offering customers the power of choice — whether HEV, PHEV, BEV, FCEV, HiCEV or bio-fuels — allows them to choose green more easily, as it respects the “economic circumstances, energy source, charging infrastructure readiness, industrial polices, and usage needs” wherever they may be.

That truly sounds like a win-win.

Mastercard ordered by FTC to help rivals route transactions

THE FEDERAL Trade Commission (FTC) ordered Mastercard, Inc. to start providing its competitors with customer account information they need to process debit payments, a move that could cut costs for merchants.

The enforcement action, approved in a 4-0 vote, is the culmination of a years-long investigation focused on Mastercard and Visa, Inc.’s policies prohibiting merchants from routing card transactions over alternative debit networks. At issue is whether the payment giants were violating part of the Dodd-Frank Act, which required banks to enable at least two unaffiliated networks on every debit card.

“This is a victory for consumers and the merchants who rely on debit card payments to operate their businesses,” Holly Vedova, director of the FTC’s Bureau of Competition, said in a statement Friday.

FTC Chair Lina Khan has pledged to use the agency’s full authority to crack down on corporate abuses of power. The announcement on Friday is the latest in a series of actions against large corporations, including Microsoft, Inc., which the commission is suing over its $69-billion acquisition of Activision Blizzard, Inc.

Mastercard and Visa have spent years investing in so-called tokenization technology, which swaps sensitive information such as account numbers with a unique, one-time-use set of numbers that validates a customer’s identity. The payment networks say those services were designed to reduce online card fraud and help the banks that issue credit and debit cards approve more transactions.

“While we are taking these steps to bring this matter to a close, there should be no question that tokenized transactions provide an increased level of protection to both consumers and merchants,” Seth Eisen, a spokesman for Mastercard, said in an e-mailed statement. “This focus on security guides our efforts in a highly competitive market and provides the incentive for us to continue investing in innovations that promote the peace of mind every person expects.”

But merchants have long complained about tokenization technology, especially its use in mobile payments. And the FTC said Purchase, New York-based Mastercard used its control over the tokenization process to block the use of competing card networks.

The statement didn’t say whether the FTC had reached a similar agreement with Visa. A representative for Visa didn’t immediately respond to a request for comment.

DODD-FRANK ACT
More than a decade ago, Congress passed a provision in the Dodd-Frank Act called the Durbin Amendment, which ordered banks to put two competing networks on all debit cards to give merchants more choice in how they route such transactions. The move was meant to lower card acceptance costs by improving competition among networks. Banks typically issue debit cards with either Visa or Mastercard, but there are also smaller, lesser-known networks such as Pulse, Shazam and Star. These networks often charge a lower fee.

According to the FTC, Mastercard historically wouldn’t let these alternative networks access its so-called token vault. The agency said that meant that when a debit card user chooses to pay with Apple Pay or Samsung Pay, merchants would have no choice but to route the transaction over Mastercard’s network to ensure the payment would be authorized.

With Friday’s move, the agency ordered Mastercard to provide alternative debit-card networks with customers’ personal account numbers. It also banned Mastercard from “taking any action to prevent competitors from providing their own payment token service or offer tokens on Mastercard-branded debit cards.”

Mr. Eisen said the company believes its existing routing practices “are lawful and have always provided choice to merchants,” adding that Mastercard “will continue the work to update our processes to comply with the consent order and provide even greater choice.”

Visa and Mastercard have faced a barrage of criticism from regulators and lawmakers over their debit card practices in recent years. Visa said last year that the US Department of Justice informed the company of plans to open an investigation into its US debit practices after the agency earlier blocked its proposed takeover of Plaid, Inc. due to concern that Visa would use the acquisition to dominate online debit-card transactions.

The FTC’s agreement with Mastercard will be subject to public comment. After that closes, the commission will decide whether to make the order final. — Bloomberg

Harry and Meghan dismiss Sun apology for offending column as ‘PR stunt’

LONDON — Britain’s Prince Harry and his wife Meghan on Saturday dismissed an apology by the tabloid Sun newspaper for publishing a column highly critical of Meghan as a “PR stunt” and said the newspaper had not contacted her to say sorry.

In the column, television presenter Jeremy Clarkson wrote of Meghan: “At night, I’m unable to sleep as I lie there, grinding my teeth and dreaming of the day when she is made to parade naked through the streets of every town in Britain while the crowds chant, ‘Shame!’ and throw lumps of excrement at her.”

Britain’s Independent Press Standards Organization (IPSO) regulator said on Tuesday that it had received more than 17,500 complaints, the most about any article since it was established in 2014.

“While the public absolutely deserves the publication’s regrets for their dangerous comments, we wouldn’t be in this situation if The Sun did not continue to profit off of and exploit hate, violence and misogyny,” a spokesperson for Harry and Meghan said.

“A true apology would be a shift in their coverage and ethical standards for all. Unfortunately, we’re not holding our breath.”

The Sun, in its apology, said: “We at The Sun regret the publication of this article and we are sincerely sorry,” adding that the article had been removed from its website and archives.

More than 60 lawmakers signed a letter written by Caroline Nokes, chair of parliament’s Women and Equalities Select Committee, to the editor of The Sun warning such articles contribute to a climate of hatred and violence against women.

In a statement posted on Twitter on Monday last week, Mr. Clarkson said he was “horrified to have caused so much hurt” and would be “more careful in future.”

The Duke and Duchess of Sussex, as Harry and Meghan are officially known, stepped down from royal duties in March 2020, saying they wanted to make new lives in the United States away from media harassment.

In a Netflix documentary series, Meghan spoke about how her treatment by the media had left her feeling suicidal as well as concern over whether she and her children were safe. — Reuters

Amazon looks to sell cargo space as demand cools

AMAZON.COM, Inc. is trying to sell excess space on its cargo planes, according to people familiar with the matter, its latest effort to adjust from a rapid pandemic-era expansion to a slowdown in online growth.

The e-commerce retailer, which has a fleet of about 100 planes in the US and Europe, in recent months has hired executives with experience marketing cargo space for airlines. Possibilities include filling empty jets returning from Hawaii and Alaska with pineapples and salmon, according to two of the people. An Amazon spokesperson declined to comment on the plans.

The long-term plan for Amazon Air hasn’t changed despite the current turmoil, said one of the people, who asked not to be identified as the discussions are confidential. The pressure to make money from unused space aboard its jets is increasing as the company looks to boost profits in a period of slower revenue growth, another person said.

Amazon unveiled the air cargo service in 2016, prompting speculation that it would ultimately create an overnight delivery network to rival United Parcel Service, Inc. (UPS) and FedEx Corp. Amazon Air operates out of smaller regional airports close to its warehouses around the country, helping the Seattle-based company quickly move inventory to accommodate one- and two-day delivery.

The company’s ultimate goal has befuddled industry experts, who have written conflicting reports about Amazon’s ambitions. Fast growth in its earlier years and a $1.5 billion investment in a hub at Cincinnati/Northern Kentucky International Airport fueled speculation that the company was ramping up to be an overnight parcel service. Other investors said Amazon remains far shy of larger carriers like FedEx and UPS, which have more planes and more flight connections that don’t overlap with Amazon’s core online retail business.

Demand for air cargo has cooled this year, and is expected to tail off again in 2023. IATA, an airline trade group, projects the sector will generate sales of $149.4 billion, about $52 billion less than 2022 but still $48.6 billion more than in 2019.

Amazon’s flights in September grew at their slowest pace since the start of the pandemic, according to researchers with DePaul University’s Chaddick Institute for Metropolitan Development, who have been monitoring Amazon Air flights since 2020.

Despite slowing demand, Amazon in October announced it would add 10 Airbus A330-300 freighters starting next year through a partnership with Hawaiian Airlines. Amazon plans to also trim its fleet by not renewing some leases for aircraft with Air Transport Services Group, two of the people said.

Even the largest package carriers are tightening belts as consumers resume pre-pandemic spending habits, which takes pressure off the shipping industry. FedEx on Dec. 20 unveiled plans to cut $3.7 billion in expenses next year, with the cost cuts including using digital tools to rebalance flights between company-owned jets and lifts from third-party operators.

Amazon is offering space on its planes, and charter flights, said one of the people. The effort is the latest maneuver to address slowing online sales and a fragile economy that could be on the brink of recession, including subletting excess warehouse space and eliminating an estimated 10,000 jobs. — Bloomberg

No rebound seen for Philippine farms

PHILIPPINE STAR/ MICHAEL VARCAS

By Luisa Maria Jacinta C. Jocson, Reporter

PHILIPPINE FARM output is likely to either contract or stay flat next year due to elevated input costs on faster inflation, according to analysts.

“We will be starting from a low 2022 base,” Raul Q. Montemayor, chairman of the Federation of Free Farmers, said in a Viber message. “I cannot see agriculture rebounding significantly in 2023 unless the problems of high fertilizer and fuel prices are addressed.”

Farm output value rose by 1.8% in the third quarter after declining by 0.6% a quarter earlier and by 2.6% a year ago, according to data from the local statistics agency.

For the nine-month period, agricultural output inched up by 0.3% from a year earlier. Production contracted by 2.5% in January to September last year.

Agriculture Undersecretary Mercedita A. Sombilla last week said the agriculture sector might expand by 2.3% to 2.5% in 2023 on crop, livestock and poultry growth.

The average yearly agriculture growth in the past two decades was 1.3%, former Agriculture Undersecretary Fermin D. Adriano said in a Viber message. “With lower fertilizer application, rising fuel costs, lingering African Swine Flu and avian flu virus, not to mention destructive typhoons brought by climate change, I don’t know how that growth can be achieved next year.”

Fuel and fertilizer prices have been rising amid soaring inflation, which quickened by 8% in November — the fastest in 14 years and breaching the central bank’s target for an eighth straight month — mainly driven by rising food prices.

As of Dec. 20, the prices of gasoline have risen by P13.95 a liter this year, by P27.50 for diesel and by P20.80 for kerosene.

As of Nov. 11, the average price of a bag of prilled urea fertilizer had risen by 16.5% to P2,538.27 from a year earlier.

Mr. Montemayor said the farm sector faces recurrent shortages in rice, corn, pork, fish and many vegetables. “The slack has been filled up by imports. Excessive imports including smuggling have discouraged farmers from increasing their production, making us even more susceptible to seasonal shortages and reliance on imports.”

“In the case of poultry and livestock, the unlimited import policy of the government, including the extension of the effectivity of Executive Order No. 171, will dampen the willingness of producers to step up,” he added.

President Ferdinand R. Marcos, Jr. last week approved the recommendation of the National Economic and Development Authority to extend lower tariffs for pork, corn, rice and coal until the end of next year.

Tariffs on pork for in-quota shipments will be kept at a reduced rate of 15% from 30%, while those for out-quota shipments will be kept at 25% from 40%.

Rice tariffs will be retained at a lower rate of 35% for in-quota shipments and 50% for out-quota imports. Corn tariffs will be cut to 5% for in-quota imports from 35% and to 15% from 50% for out-quota shipments.

Analysts said the government should focus on boosting its support for the agriculture sector.

“Food security and the agricultural sector should be one of the primary concerns,” Antonio A. Ligon, a law and business professor at De La Salle University, said in a Viber message. “We have big tracts of land that can be utilized for food production.”

Mr. Ligon said ensuring adequate food supply would lessen the country’s import dependence. “We need not import if we have sufficient supply of basic food commodities. The prices of basic ingredients should not have been an issue if we had good production and support for our farmers.”

The government should upgrade the skills of farm workers, John Paolo R. Rivera, an economist at the Asian Institute of Management, said in a Viber message.

“Put effort in developing agriculture from largely subsistence to more commercialized farming by equipping farmers with technical skills and business acumen,” he said. Middlemen should be eliminated as much as possible, while improving transportation and investing in technology to boost productivity, he said.

“This will alleviate food shortages and manage inflation driven by food prices.”

“We cannot see for now a clear policy direction and game plan from the Department of Agriculture,” Mr. Montemayor said. “What they are doing and planning to do is more of the same, except with a larger budget, so we cannot expect much difference in the results.”

Mini PHL flagship showroom, Triumph Moto headline Autohub’s BGC facility

At the inauguration of the Mini BGC facility are (from left): Mini Philippines General Manager Jefferson C. Lizardo; Barangay Fort Bonifacio Chairman and Taguig Association of Barangay Captains Councilor Jorge Bocobo; Autohub Group Chair Benita Q. Tee Ten; United Kingdom Ambassador to the Philippines Laure Beaufils; Autohub Group President Willy Q. Tee Ten; and Autohub Group VP for Marketing, Creatives, and Fleet Owee Cruz. — PHOTO FROM AUTOHUB

THE AUTOHUB Group recently opened a new site at the Bonifacio Global City (BGC) in Taguig. With a total floor area of 2,863.16 sq.m., it is bannered by Mini and Triumph — two of the automotive brands under the automotive conglomerate’s wing.

“After our stay at Eastwood City, BGC is now our permanent home in Manila,” said Autohub President Willy Tee Ten. “In addition to being the largest Mini showroom in the country, it boasts new designs and amenities that are aligned with the new corporate identity of Mini globally.” It is the sole Mini dealership in Metro Manila to offer after-sales services, lifestyle and lounge areas, and “future-ready” facilities — the last denoting readiness for electric vehicles once they arrive in the country (expected in 2024).

“Electric vehicle charging points will soon be installed,” continued the executive. The 753-sq.m. Mini BGC can display up to four cars in its showroom. The establishment also boasts a receiving area for guests and a roof deck venue. The brand’s array of lifestyle merchandise is also available for purchase.

Meanwhile, following news that it became the UK motorcycle marque’s leading dealer in the world (having sold more than 700 units year-to-date) Triumph Motorcycles Philippines has also opened shop in the BGC location — and at the LausGroup Corporate Center on Jose Abad Avenue in San Fernando, Pampanga. “We were able to see an increase in our audience’s interest in owning a modern-classic, sport, naked, and adventure Triumph bike, ultimately enabling Autohub to launch new branches in different hotspots,” said the company in a release. Along with Triumph bikes, apparel and genuine accessories are also available for purchase.

Also at the location are Autohub Car Care Services (ACCS) and VKool — with their range of accessories, tints, and after-sales services. Featured products include: Shark helmets; motorcycle, denim, and puffer jackets, and motorcycle gear from Segura and Furygan; Labl-branded jerseys; Falco high-cut riding shoes; Kriega backpacks and bags; Cardo speakers, microphones, and communication systems; Zard exhaust pipes; Wagantech air compressor units, jump-starters, and power banks; Two Scents perfumes and air fresheners; and Diamondbrite paint protection and leather cleaners. Autohub also announced the availability of its APP or Autohub Premium Protection extended warranty.

Mr. Tee Ten told “Velocity” that a third car brand is slated to open at the BGC site, which has been leased until 2029.

For Moto ACCS and VKool inquiries, contact Jeff 0917-812-4870 or Diane 0917-767-6512. A Greenhills branch of Moto ACCS will open in January 2023 at the Triumph and Vespa locations. — Kap Maceda Aguila

Yields on gov’t debt up on hawkish BSP, holidays

YIELDS on government securities (GS) traded in the secondary market soared across the board on Friday as investors remained on the sidelines amid hawkish remarks from the Bangko Sentral ng Pilipinas (BSP) and the holidays ahead.

On average, GS yields — which move opposite to prices — went up by 6.02 basis points (bps) week on week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of Dec. 23 published on the Philippine Dealing System’s website.

Total volumes of GS traded thinned given the holiday season, reaching P5.316 billion on Friday, lower than the P7.744  billion recorded on Dec. 16.

At the secondary market on Dec. 23, yields on Treasury bills (T-bills) increased from their week-ago levels. The 91-, 182-, and 364-day T-bills picked up 8.20 bps, 2.02 bps, and 2.91 bps to yield 4.2012%, 4.9130%, and 5.1835%, respectively.

At the belly, the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) saw their yields rise by 10.95 bps (5.9609%), 7.56 bps (6.1920%), 7.03 bps (6.3430%), 7.72 bps (6.4601%) and 7.97 bps (6.6637%), respectively.

At the long end of the curve, rates of the 10-, 20-, and 25-year T-bonds went up by 7.37 bps, 1.12 bps, and 3.32 bps, respectively, to fetch 6.9246%, 7.2430%, and 7.2399%.

A bond trader said GS yields’ average increase over the week came after “hawkish policy remarks from BSP Governor Felipe M. Medalla over two more potential rate hikes in 2023, as well as the surprise policy tweak by the Bank of Japan.”

The bond trader said that investors remained on the sidelines and that market activity was relatively subdued.

“These market developments have firmed expectations of continuing hawkish policy guidance for at least until early 2023,” added the bond trader.

Last week, Mr. Medalla said that the Monetary Board’s first two meetings next year might announce rate hikes to help bring inflation near 3% by the third quarter of 2023.

The country’s Inflation rate accelerated to 8% in November, well above its 2-4% target for the current year.   

Meanwhile, the Bank of Japan stunned markets after its recent meeting by tweaking its yield curve policy, allowing long-term interest rates to increase more in a move aimed at ironing out market strains given its huge bond buying, said a Reuters report.

The decision to allow the 10-year bond yield to move 50 bps on either side of the 0% target is wider than the previous 25 bps band.

The central bank kept its yield target unmoved and said it would increase bond buying, a sign of fine-tuning the ultra-loose monetary policy rather than a withdrawal of stimulus.

“Pretty much rangebound for the GS market with yields higher as market players lighten their positions ahead of the holidays,” a second bond trader said in a Viber message.

For this week, the bond trader expects the same movement to continue. 

For the first bond trader, bond yields might move sideways with a downward bias because of “thin” market activity as investors might remain on the sidelines from the holidays and potentially downbeat economic data releases.

“This downside might be supported by unexpected geopolitical worries, driving some safe-haven demand,” added the first bond trader. — Lourdes O. Pilar

Style (12/26/22)

Boxing Day sale at Shangri-La Plaza

SHANGRI-LA PLAZA is celebrating Boxing Day with a mall-wide sale starting today, Dec. 26, to Jan. 8, 2023. After Christmas is the time to get the latest tech and gadgets, furniture and accessories to refresh personal spaces, and new outfits and footwear for the new year. Mall guests can access the Shang’s roster of top brands which are offering deals up to 80% off. Shop for fashion and beauty items at Adora, Shoe Salon, Melissa, Naram Pashmina, and Beauty Bar, new eye wear at J. Vinas and LS Pascual Optical, and new things for the kids at multi-brand store Playground. Spruce up spaces with furniture and home accessories from Ashley and Sheridan, and books, crafting, art and supplies at National Bookstore. In addition, customers who join the Boxing Day Sale will have a chance to be one of the winners of a Suzuki Jimny GLX. Every single receipt worth P2,500 entitles shoppers to claim a digital raffle coupon for the Christmas Holidaze Raffle Promo by scanning the QR code at the Concierge or website to submit their personal details. For updates and inquiries, follow Shangri-La Plaza on Facebook at www.facebook.com/shangrilaplazaofficial and on Instagram @shangrilaplazaofficial.

Albert Andrada in Paris Fashion Week Couture 2023

ALBERT Andrada is set to make fashion history for the Philippines as he becomes the first Filipino designer to showcase his haute couture designs in a solo show at the Paris Fashion Week Couture 2023. The high fashion event, happening from Jan. 25 to 26 at the Westin Paris Vendome, will see the collaboration of Andrada and BaroQco, a jewelry-maker known for creating crowns for Miss Universe Netherlands, Germany, and Singapore. The partnership is a milestone for the Philippines as it presents a perfect opportunity to showcase Filipino creativity and artistry on the venerable and highly-publicized Paris runway. Andrada established a stellar career when he became a favorite designer of members of the royal families of the Middle East. He was appointed designer of the ruling family in Fujairah of the United Arab Emirates. Among his clients and muses is Pia Wurtzbach who wore an iconic blue Andrada creation when she was crowned Miss Universe 2015. Paris Fashion Week, also known as Semaine de la mode de Paris, is held semi-annually in the French capital as a regular designer presentation featuring designs for spring/summer and autumn/winter. Dates are determined by the French Fashion Federation. Paris Fashion Week is part of the global “Big 4” fashion events in London, United Kingdom; Milan, Italy; and New York, United States.

Penshoppe releases new collection

Penshoppe has just released a new collection that takes everyday outfits to the next level. The Penshoppe Essentials Collection was put together with an understanding on how comfort takes the lead in making life easier. Think of clothes that allow the user to move with ease and comfort as they go about their day. The collection offers a range of hoodies, pullovers, and T-shirts paired with either joggers or shorts. Accessorize with casual yet stylish sliders which come in tan, black, and pearl blush. Complete the getup with a beanie or hat. These pieces are available online and in select Penshoppe stores. Customers can try Penshoppe’s “Shop Online, Pick-up in Store” option where orders can be made online and they can pick up the items at any participating branch of their choice. Check out the latest from Penshoppe, visit https://www.penshoppe.com/.

Asics unveils the EX89 sneaker

ASICS Sportstyle has launched the EX89 sneaker. This style was inspired by the Gel-Extreme basketball shoe from 1989 and converted into a low-top silhouette. It was originally created by Toshikazu Kayano as his first design project with Asics. Perhaps more well-known for his Gel-Kayano running shoe series, this silhouette became a milestone that would pave the way with technology breakthroughs for Asics footwear. During the late 1980s, performance basketball shoes were primarily covered with white bases. The EX89 sneaker’s ancestor — the Gel-Extreme — became one of the first to sport color blocking influenced by basketball team uniforms. This season, the shoe returns with its traditional leather construction plus with team-centric color palettes. The updated model will also be available with various renditions that are modified with modern lifestyle materials. The EX89 debuted at Culture Cartel 2022, the street culture convention on Dec. 2 to 4.  In its playing days, the shoe was designed with Gel technology for impact absorption when jumping or rebounding. This iteration is reconstructed with a sculpted heel shape and FF Blast cushioning system. These features help the shoe remain lighter and more comfortable for an everyday lifestyle. The Asics Sportstyle EX89 sneaker will feature original-inspired makeups with team color blocking and neutral versions that are constructed with classic lifestyle materials. The shoe will be available for ₱6,490 on Asics online and in Asics stores in blue and green colorways. The black and grey colorways of the EX89™ are FootLocker Exclusive and will be available at FootLocker online and stores.

BLCKBOX launches flagship store in the Philippines

TIER ONE Entertainment has opened the first-ever flagship store for BLCKBOX, its official apparel and merchandise division. Tier One’s first merch offering dates back to Electronic Sports and Gaming Summit (ESGS) 2019, where they released their first limited collection called the “First Drop,” which paved the way for a new business venture for Tier One Entertainment. June 2021 marked the official launch of BLCKBOX in the e-commerce space through Lazada and Shopee. This established BLCKBOX’s presence as a new gaming lifestyle brand, providing fans with high-quality fashion items for gamers. This year, BLCKBOX was a fixture in conventions and gatherings throughout the year, including CONQuest Festival 2022, ESGS 2022, and the Mobile Legends Professional League Philippines (MPL-PH) playoffs among others. BLCKBOX also collaborated with internationally renowned artists Quiccs and Egg Fiasco to create bold new jersey designs for Blacklist International’s Mobile Legends team. BLCKBOX also was the Philippine Esports Organization’s official merchandise and apparel partner, clothing the athletes that would represent the Philippines in various international competitions. Located on the 3rd floor of Bellagio Square, 119 Scout Fuentebella St., Laging Handa, Quezon City, the physical store carries the Day One collection which commemorates the 5th anniversary of Tier One Entertainment. This collection will be an annual release showcasing the history of the company. Other lines include the SIBOL 2022 line, a new BLCK cap, and the MLBB Championship Jersey. The shop is open from 10 a.m. to 7 p.m.

DMCI Holdings’ stock moves on positive sentiment and earnings

INVESTORS bought shares in DMCI Holdings, Inc. as the year nears its end, with market players riding on the firm’s upward trend and its better-than-expected performance despite high-interest rates and the threat of inflation rising in the coming months.

A total of 53.19 million DMCI shares worth P575.42 million were traded from Dec. 19 to 23, data from the Philippine Stock Exchange (PSE) showed.

The holding firm’s share price went up by 7.7% week on week, finishing at P11.48 apiece on Friday from its P10.66 close the previous week. Year to date, the stock has gained 48.9%.   

Analysts pointed to positive market sentiment for DMCI’s performance despite the caution on investing in companies with units in the property sector ahead of higher interest rates and inflation. 

Mark Crismon Santarina, head of electronic trading at Globalinks Securities and Stocks, Inc., said in a Viber message that the sales numbers of DMCI’s property arm remain to be strong.

“From July to September, DMCI Homes more than doubled (159%) its sales and reservations,” he said.

Mr. Santarina said DMCI Homes’ partnership with Robinsons Land Corp. (RLC) for a property project in Las Piñas “surely will attract investors taking advantage of redevelopments and high growth areas” south of Metro Manila.

“DMCI bagging the subway project and of course, the demand for coal and power is the catalyst for DMCI’s recent price movements,” he added.

DMCI and its subsidiaries are in construction, real estate, coal and nickel mining, power generation, and water distribution.

Jose Rafael Mendoza, equity research analyst at Philippine National Bank (PNB), said in an e-mail interview that DMCI’s listed subsidiary Semirara Mining and Power Corp. contributed to the group’s growth due to continued coal demand. 

“However, we remain cautious that the real estate industry will be challenged next year amid rising interest rates and input costs which will keep project launches subdued relative to pre-pandemic levels. The effect of recent news of the joint project of DMCI Homes and RLC was likely minimal to investors,” Mr. Mendoza added.

Last week, DMCI’s property subsidiary DMCI Homes announced the completion of the first building of its joint condominium project with RLC named Sonora Garden Residences in Las Piñas.

Cadence, the first building with 40 storeys and 867 units, is expected to be turned over by June 24 next year. Post-turnover, DMCI and RLC are expected to record P5.55 billion in sales from the project, which is expected to bring more once its amenities are completed.

Two more buildings, named Liran and Stellan, are set to rise in Sonora Garden.

Analysts said that the ongoing projects of DMCI’s subsidiaries and the positive market outlook will continue to drive the stock’s uptrend in the short term. They added that economic reopening could boost the residential property segment next year unless the government fails to tame inflation, which could cause prices to further rise.

“There are definitely headwinds next year, but I think DMCI will still be profitable given the recent numbers that they disclosed, demand continues to be there,” Mr. Santarina said.

Analysts said that DMCI’s better performance made the stock more attractive to investors. The company’s attributable net income in nine months to September surged by 105% to P27.63 billion.

Mr. Mendoza said the stock is fairly priced this year, hitting PNB’s P10.60-per-share target and surpassing it, as DMCI was trading at above P11 per share.

“DMCI definitely is one of the winners of 2022. As mentioned by the management they are projecting strong earnings next year because of the continuous demand for the products of their subsidiaries. I believe DMCI will still be a market favorite next year,” Mr. Santarina said.

He placed his full-year profit estimate for the stock at P35.8 billion, factoring in higher costs of raw materials and construction slowdown due to inflation.

PNB’s Mr. Mendoza said that the favorable third-quarter income was mostly due to Semirara Mining and Power’s 152% year-on-year growth to P5.8 billion.

For the last trading week of the year, Mr. Santarina gave his support and resistance levels for DMCI at P10.20-P9.60 and P12, respectively, as the stock recently hit its 52-week high. — Bernadette Therese M. Gadon

Philippines in talks with China for solar-powered irrigation system

DEPARTMENT OF AGRICULTURE HANDOUT

THE Philippine Agriculture department plans to negotiate with China for the country’s solar powered irrigation system.

The agency has formed a team that will handle the proposed solar-powered irrigation system, Agriculture Assistant Secretary Arnel V. de Mesa told a news briefing last week.

“We are drafting a possible engagement with China. Hopefully, by next year we can submit a feasibility study to the National Economic and Development Authority.”

Mr. De Mesa said that the proposal came after the Agriculture department got requests for a possible engagement with China to help boost farmers’ productivity. “As of now, the discussion is ongoing and we are not seeing any roadblocks.”

He said that the Agriculture department also seeks to revive a proposal by Israel to help the Philippines promote solar-powered irrigation after it was terminated in the absence of a government-to-government deal.

Mr. De Mesa said that the Israel Embassy was still trying to iron out terms with the Philippine Finance department, which serves as the Philippine negotiator.

Earlier this month, Agriculture Senior Undersecretary Domingo F. Panganiban said the Philippines and Israel were discussing a potential agricultural collaboration.

Israel is willing to provide technical assistance to Filipino farmers and fisherfolk particularly in the field of solar farms, hydroponics, drip irrigation and dairy farming, the Agriculture department said. — Ashley Erika O Jose

1...4,4174,4184,419...13,192Page 4,418 of 13,192
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube