McDonald’s raises UK cheeseburger price for first time in 14 years

July 29, 2022 | 12:01 am

LONDON — McDonald’s will increase the price of its cheeseburger by 20% in Britain, in the first price hike for the popular item in 14 years as it responds to soaring inflation.

The cheeseburger’s price will now rise to £1.19 from 99 pence. McDonald’s will also increase prices by 10p-20p for other items that have been hit by rising costs, the burger chain’s UK chief told customers on Tuesday.

“We’re living through incredibly challenging times,” McDonald’s UK & Ireland CEO Alistair Macrow said. “Just like you, our company, our franchisees who own and operate our restaurants, and our suppliers are all feeling the impact of rising inflation.”

The increase, which will take the cheeseburger above the psychologically important price point of £1, comes as British consumer price inflation hovers around 40-year highs and is forecast to top 11% in October.

Mr. Macrow said the increases had been delayed for as long as possible, and that the company was still committed to keeping prices affordable.

The Chicago-headquartered chain, which runs more than 36,000 restaurants in more than 100 countries, also raised US prices by 6% last year, in line with increases at other consumer-focused companies which are facing higher inflation amid strong post-pandemic demand and supply chain disruption.

The British Retail Consortium said on Wednesday shops and supermarkets had increased prices by 4.4% in the 12 months to July, the largest rise since these records began in 2005.

Helped in part by higher prices, McDonald’s Corp. on Tuesday reported better-than-expected profit even as expenses soared. It said it was also considering whether to add more discounted menu items as higher inflation, particularly in Europe, forces some consumers to buy fewer big combination meals. — Reuters

Netflix orders sequel and spinoff to Ryan Gosling film The Gray Man

July 29, 2022 | 12:01 am

Ryan-Gosling-in-The-Gray-Man-(2022) — Ryan Gosling in The Gray Man

LOS ANGELES — Netflix, Inc. is turning its new spy thriller The Gray Man into a franchise, announcing plans on Tuesday for a sequel and spinoff to the action movie starring Ryan Gosling.

The Gray Man, one of Netflix’s most expensive movies to date, began streaming last Friday and was the most watched film on the streaming service in 92 countries, the company said.

Mr. Gosling stars in the film as Sierra Six, a former inmate sprung from prison by the CIA in exchange for servitude in a secret program.

A Gray Man movie sequel is now in development with Gosling and directors Joe and Anthony Russo, Netflix said in a statement.

The company also announced a separate spinoff movie but did not provide details on the storyline or characters.

The expansion of Gray Man is part of Netflix’s strategy to build brands with well-known characters that can traverse film, television, video games, and movies. — Reuters

Manila ranks 93^rd in 100-city sustainability list

July 29, 2022 | 12:00 am

The Philippine capital placed 93rd out of 100 in the Sustainable Cities Index (SCI) 2022 by the consultancy firm Arcadis. The SCI ranks global cities by assessing their environmental, social, and economic health. Manila placed last among the East and Southeast Asian cities included in the index.

How PSEi member stocks performed — July 28, 2022

July 29, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, July 28, 2022.

Marcos vetoes bill expanding DLPC franchise

July 28, 2022 | 9:17 pm

PRESIDENT Ferdinand R. Marcos, Jr. has vetoed House Bill 10554, an Act Expanding the Franchise Area of Davao Light and Power Co., Inc. (DLPC), noting that the area targeted for expansion would mean that DLPC would effectively “kill” the current franchise holder, North Davao Electric Cooperative, Inc. (Nordeco).

In his veto letter sent to the Senate and House of Representatives on Wednesday, Mr. Marcos said that he is concerned that the measure could be subject to a court challenge if Nordeco defends its interests.

“I remain committed to the pursuit and attainment of this objective in a vigorous and systematic manner, with utmost respect for the concomitant rights of the public service entities engaged in supplying electric service,” Mr. Marcos said in his letter, noting that with Nordeco’s franchise ending in 2023, “House Bill 10554, aims to kill the (electric cooperative’s) franchise.”

He said the measure would violate Section 27 of Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001. Section 27 allows franchises to continue operating over their full term.

“Likewise, the resulting repeal of North Davao Electric Cooperative, Inc.’s franchise over the expanded franchise area will violate the non-impairment clause as provided in Section 10, Article III of the 1987 Constitution,” the President said.

Asked to comment, Rodger S. Velasco, president and chief operating officer of DLPC, said the company has been notified of the veto.

“We can confirm that we have received information that Malacañang vetoed House Bill 10554, which is meant to expand the franchise area of AboitizPower subsidiary Davao Light and Power Co. to Davao del Norte,” Mr. Velasco said in a text message.

Mr. Velasco declined to comment further pending the issuance of an official company statement and “until we receive final instructions from regulators and government authorities.” — Ashley Erika O. Jose with Maya M. Padillo

Minimal 2023 budget increase could force sacrifice of some programs for agri, Angara says

July 28, 2022 | 9:16 pm

senate-budget-angara — PHILSTAR FILE PHOTO

THE 4% funding increase in the 2023 General Appropriations Act will require the government to set clear spending priorities and possibly sacrifice some spending items to achieve its goal of expanding agriculture, according to the chairman of the Senate Finance Committee.

The budget increase over 2022 is “a very small increase compared to previous years,” Senator Juan Edgardo M. Angara told ABS-CBN news channel on Thursday, in response to expectations that the government will spend freely on agriculture, to the extent of tripling the agriculture budget.

He was referring to expectations that the administration will triple the budget and spending on the agriculture sector.

Mr. Angara said the limited expansion of the budget will mean cutbacks for some programs, which will “bear the brunt” as the food crisis takes priority.

He expects that there will be a “more focused spending” as “the President wants to do so many things so, the departments have to take their cue and focus on what the President mentioned in his SONA (State of the Nation Address).”

“Maybe that’s why the President started off his SONA with a kind of budget responsibility call, maybe a fiscal responsibility call, but there will be no wasteful spending, precisely so he can focus on all of these issues he wants to spend on,” he added.

The senator approved of the chief executive’s decision to talk about taxes to open his address, saying that “if you want to have funds (for) your projects, do it at your most popular.”

To simplify taxation, Mr. Angara proposed to strengthen the role of the Department of Information and Communications Technology (DICT) and pass bills digitizing government processes and transactions.

“These are all intertwined with ease of doing business. So, if you can do this online, if people can do this from the comfort of their home, just punch in their bank account and transact, that would be fantastic,” he said.

“But of course, the adjunct to that is there are also cyber security concerns. So, as cyber commerce grows, then… your ability to protect that space becomes more important also,” he added.

Mr. Angara believes that the government’s goal should be to return to pre-pandemic levels and achieve goals previously set.

“We were on track to achieve those goals during the previous administration, except that COVID (coronavirus) hit us,” he said. “I guess, the biggest challenge is how to put us back on that track.”

“That’s why I am happy that he mentioned agriculture (and) tourism, because these are all components of our country’s GDP (gross domestic product). And if you look, what has been driving our GDP is services and government spending, as well as IT-BPOs (information technology-business process outsourcing),” he added. — Alyssa Nicole O. Tan

Oct. set as arrival target for fresh fertilizer shipments

July 28, 2022 | 9:09 pm

THE Department of Agriculture (DA) said fertilizer from overseas suppliers to ease price pressures on farmers must arrive by the next planting season in October.

“We are continuing to research and source cheaper fertilizer, which is very important for our farmers right now,” Undersecretary-designate for Consumer and Political Affairs and DA spokesperson Kristine Y. Evangelista said.

The DA’s National Rice Program (NRP) will lead the fertilizer import initiative, according to Ms. Evangelista.

“Together with the NRP, we are studying the appropriate schedule of utilizing fertilizer. We are counting the days, from the time of planting, and how many days is required to use fertilizer,” she said.

Ms. Evangelista said that the DA and regional field offices will guide farmers in availing of credit programs.

“Financial assistance is available. It is just a matter of applying as an individual farmer or a cooperative. As of now, we are really pushing for clustering and cooperativism,” she said.

“We encourage farmers to register under the Registry System for Basic Sectors in Agriculture (RSBSA) so they can avail of the many interventions and support from the government,” she added.

The DA is looking into government-to-government agreements with China, Indonesia, Malaysia, and the United Arab Emirates to ensure favorable prices.

“The logistics are very important. Even if it’s cheap, if it comes from somewhere far away, it will end up being more expensive. We are looking at strategic sources for fertilizer,” she said.

“We are currently conducting a national inventory of our facilities (to) maximize fertilizer storage (and) food mobilization as well,” she added. — Luisa Maria Jacinta C. Jocson

PEMC launches commercial operations in renewable market

July 28, 2022 | 9:06 pm

THE Philippine Electricity Market Corp. (PEMC) said it opened the renewable energy market (REM) to interim commercial operations on Thursday.

“The REM will incentivize the harnessing of our wealth of natural resources, bringing in additional, more sustainable sources of electricity,” PEMC President Leonido J. Pulido III said in a statement.

Mr. Pulido said that PEMC hopes that more diverse sources of energy will boost energy security.

REM is a venue for buying and selling renewable energy certificates (REC), representing property rights over renewable electricity generated by market participants.

Under the Renewable Energy Act of 2008, PEMC serves as the Renewable Energy Registrar, which will be responsible for issuing, keeping, and verifying RE Certificates corresponding to energy generated from eligible RE facilities.

The PEMC, as the DOE-designated registrar for renewable energy, issues one REC for every megawatt hour of actual output from eligible RE facilities. — Ashley Erika O. Jose

ASEAN not in favor of excluding Russia, DFA says

July 28, 2022 | 9:03 pm

THE Association of Southeast Asian Nations (ASEAN) does not support efforts to isolate Russia and seeks to pursue further engagement with Moscow in the near future, including on matters of trade, the Department of Foreign Affairs (DFA) said in a briefing.

Foreign Affairs Assistant Secretary for ASEAN Affairs Daniel R. Espiritu said during an online briefing on Thursday that Russia’s prime minister is due to participate in upcoming ASEAN meetings, and that the bloc plans to organize “economic and socio-cultural activities” involving Russia.

The ASEAN position leaves the region’s options open regarding key commodities that Russia can export in volume, like energy and grain.

“Russia has been a partner for a long time of ASEAN, and so we have a lot of common cooperation projects,” Mr. Espiritu said.

“In fact, 2022 is a year of scientific and technological cooperation between ASEAN and Russia. The relations between ASEAN and Russia transcend politics, and they include all of these economic and socio-cultural cooperation activities,” he added.

“We are also working on a work program… on trade and investment between ASEAN and Russia, and that would still go towards helping economic recovery in the wake of the pandemic and of course the crisis in Ukraine.”

ASEAN, however, remains concerned about the humanitarian situation in Ukraine and the destruction of its infrastructure. The bloc intends to provide humanitarian assistance to displaced people, and has called for a cessation of hostilities a number of times, he said.

Regarding the impact on the regional economy from the Russia-Ukraine war, Mr. Espiritu said ASEAN “will not be hampered simply because of the economic crisis” with active discussions within the bloc regarding energy security, food security and supply-chain disruptions.

In the past two years, ASEAN member-states have also come to broad agreement on relaxing travel restrictions within the region without sacrificing health safeguards, with similar travel arrangements reached with the European Union.

Mr. Espiritu said the DFA supports Philippine participation in the world’s largest trade bloc.

“Of course, the implementation of the RCEP (Regional Comprehensive Economic Partnership) can be a big help in regards to (gaining) leeway for economic recovery,” he said. “It is now up to the countries to maximize the benefits they can get from this agreement.”

The RCEP, which started coming into force in the various jurisdictions on Jan. 1, involves Australia, China, Japan, South Korea, New Zealand and the 10 members of the ASEAN.

The Philippines is one of three countries that have not ratified RCEP, along with ASEAN members Indonesia and Myanmar.

Representing about 30% of global gross domestic product, the RCEP allows for zero or reduced tariffs in trade between the members of ASEAN and its free trade agreement partners.

The DFA also reiterated Philippine backing for the ASEAN condemnation of Myanmar’s execution of two pro-democracy activists and two alleged terrorists.

“Aside from the position of ASEAN of expressing being extremely troubled and saddened by the execution of the four in Myanmar, the Philippines denounces that execution,” Mr. Espiritu said.

The Philippines raised its alert level for Filipino citizens in Myanmar after the military takeover, allowing only workers with live contracts to go to that country.

Despite appeals from Filipino workers in Yangon to lift travel restrictions, the DFA on Wednesday issued an Alert Level 4 warning covering 1,273 Filipinos resident in Myanmar.

“The DFA acknowledges the concerns of OFWs wishing to return to Myanmar despite the uncertainty and danger posed by the ongoing crisis. However, the safety and security of every single Filipino overseas remain the top priority of the Philippine government,” the department said in a statement.

A total of 701 Filipino nationals or around 60% of the resident population have been repatriated, the DFA said. — Alyssa Nicole O. Tan

Condos seen as main beneficiary as businesses resume on-site work

July 28, 2022 | 9:02 pm

Makati-buildings-skyline — A VIEW of buildings in Makati City. — PHILIPPINE STAR/MICHAEL VARCAS

A RETURN to on-site work for most employees is expected to boost the recovery of the residential property market, particularly condominiums, according to Colliers Philippines.

“In terms of supply, we are seeing sustained recovery in condominium completion…. a lot of employees are returning to traditional work spaces and are looking for condo units near(by),” Colliers Senior Research Manager Joey Roi H. Bondoc said in a virtual briefing.

On the other hand, the market for pre-selling condominiums in Metro Manila is likely to be hampered by rising interest rates, according to Colliers.

“In our view, compressing yields have also been compelling developers to delay condominium launches in the capital region. Colliers believes that developers are now taking a more cautious stance as they await the release of the new administration’s economic agenda, including property reforms, and gauge general consumer sentiment amid rising inflation and interest rates,” the company said in its report.

“The secondary market, meanwhile, is likely to benefit from the return of foreign employees as well as local firms’ return-to-office mandates. We see this positively influencing prices and rents in major business districts,” it added.

Mr. Bondoc said that the administration’s plans for infrastructure development will also support the recovery of the residential property sector.

“There’s a push to support ecozones and investments and data centers, which is a potential driver for spaces,” he said.

Colliers projected the delivery of 10,100 units by the end of 2022, with the Bay Area accounting for about 60% of this new supply.

“Looking at the second half, we are expecting the delivery of about 8,800 new units. This is an aggressive completion (rate which) we are projecting,” Mr. Bondoc said.

“This relentless completion will propel Bay Area to top the business districts in terms of completion or total share of condo supply. By 2024, the Bay Area will overtake Fort Bonifacio,” he added.

Rents increased by 0.4% in the second quarter this year, Colliers said. “The return of more local and foreign employees to their offices should support leasing demand and lift rents 1.2% year on year in 2022.”

In the second quarter, vacancies declined across all submarkets except for the Bay Area.

By the end of the year, Colliers said it projects vacancies easing to 17.3% after the record 17.9% set in 2021.

“Given the subdued residential demand during the last two years, developers offered attractive promos and discounts to attract potential buyers and investors. Common offerings included lower reservation fees, split or no down payments, and free furniture, gadgets and appliances such as air-conditioning units,” the property consultant said.

“In our view, developers should continue to be aggressive in offering innovative and attractive promos to recapture residential demand. Some developers may opt to offer early move-in promos or rent-to-own schemes for their ready-for-occupancy (RFO) units. For non-RFO units, developers may offer extended payment terms even beyond turnover. These promos should be highlighted especially for a client base wary of rising inflation and mortgage rates,” it added.

The office market is expected to grow as economic activity recovers, with the government indicating that there will likely be no more lockdowns.

“Overall, the Philippines is open for business. We like the increase of foreign portfolio investment (FPIs) and the strengthening dollar. The President has also stated that no more lockdowns will be implemented and we think this is a significant development,” Colliers Associate Director Kevin Jara said.

In his State of the Nation Address on Monday, President Ferdinand R. Marcos, Jr. declared that he will observe a no-lockdown policy over the remainder of the pandemic.

“Colliers Philippines has recorded two consecutive quarters of positive net office space take-up. This indicates that Metro Manila transactions are holding firm despite the popularity of hybrid work arrangements, and we project sustained absorption for the remainder of the year. New supply, meanwhile, is reverting to pre-POGO levels last seen in 2016,” the company said, referring to the boom-and-bust cycle seen in the office market due to Philippine Offshore Gaming Operators.

In 2022, Colliers projected about 808,900 square meters of new supply.

“From 2023 to 2026, we project new office space completion to revert to pre-POGO levels,” it added.

“We see a gradual market recovery and we recommend landlords and tenants capitalize on the growth trajectory by assessing hybrid work arrangements that will support operations; leveraging opportunities brought about by the tenants’ market; clarifying concerns on investment promotion agency (IPA) transition and incentive qualification; and by providing flexibility on office handover conditions depending on tenant preferences,” it added. — Luisa Maria Jacinta C. Jocson

PSEi surges as Fed’s 75-bp hike eases uncertainty

July 28, 2022 | 9:00 pm

STOCKS rose following another 75-basis-point (bp) rate hike from the US Federal Reserve and less hawkish comments from its chief.

The Philippine Stock Exchange index (PSEi) went up by 142.50 points or 2.28% to close at 6,379.26 on Thursday, while the broader all shares index increased by 54.38 points or 1.61% to 3,424.96.

“Fed hiking rates by a widely-expected 75 bps has cleared the markets from the 100-bp uncertainty, leading to the market upswing that we saw earlier,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

“The local bourse notched a winning session, following a widely expected 75-bp rate hike from the Fed. Chairman Jerome Powell hinted that the central bank could slow the pace of tightening by the next policy meeting,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Investors also cheered on his statement that the US economy hasn’t entered a recession,” Mr. Limlingan added.

He said investors are waiting for the release of US second quarter gross domestic product (GDP) data to gauge the state of the world’s largest economy.

The Fed on Wednesday raised its policy rate by 75 bps for a second straight meeting, bringing total interest hikes since March to 225 bps.

After the meeting, Mr. Powell said while the labor market remains strong, other economic indicators have softened. He also hinted at an eventual slowdown in hikes.

US economic growth likely rebounded moderately in the second quarter as companies boosted exports and maintained a strong pace of spending on equipment, which could assuage financial market fears that the economy was already in recession, Reuters reported.

The US Commerce Department’s advance second-quarter GDP report on Thursday will, however, still show that the economy was losing momentum because of high inflation that has prompted the Fed to aggressively tighten monetary policy.

Back home, all sectoral indices ended in the green on Thursday. Financials jumped by 47.04 points or 3.18% to 1,526.47; holding firms climbed by 159.91 points or 2.70% to 6,079.42; services went up by 31.15 points or 1.90% to 1,663.69; property increased by 51.78 points or 1.86% to 2,834.06; mining and oil rose by 154.01 points or 1.36% to 11,466.31; and industrials added 88.78 points or 0.94% to end at 9,448.02.

Advancers outnumbered decliners, 140 versus 50, while 40 names closed unchanged.

Value turnover climbed to P4.73 billion on Thursday with 567.76 million shares changing hands from the P3.83 billion with 325.86 million issues seen the previous day.

Net foreign selling increased to P166.42 million from the P136.75 million seen on Wednesday.

AP Securities’ Mr. Temporal placed PSEi’s support at 6,000 and resistance at the 6,400 area, while Regina Capital’s Mr. Limlingan put the PSEi’s support at 6,100 and resistance at 6,400. — J.I.D. Tabile with Reuters

Peso sinks further after Fed decision

July 28, 2022 | 9:00 pm

THE PESO weakened further versus the dollar on Thursday after the US Federal Reserve hiked rates by 75 basis points (bps) for a second straight meeting, as expected.

The local unit closed at P55.82 against the dollar on Thursday, down by 14 centavos from P55.68 on Wednesday, data from the Bankers Association of the Philippines’ website showed.

The peso opened the session at P55.58 against the dollar. Its weakest showing was at P55.97, while its intraday best was at P55.55 versus the greenback.

Dollars exchanged went up to $1.27 billion on Thursday from $1.01 billion on Wednesday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso dropped after the Fed’s widely expected 75-bp hike and “as Fed Chair Jerome H. Powell signaled that the US economy is not in recession, the pace of Fed rate hikes would slow at some point.”

Mr. Ricafort said the peso’s decline versus the dollar was a healthy correction after its recent surge.

“Market sentiment also supported by the latest gains in the local stock market, as well as lower global crude oil price lingering among three-month lows recently,” he added.

“The FOMC (Federal Open Market Committee) doubled down on aggressive policy tightening by raising the benchmark Fed funds rate by 75 bps yet again last night as largely expected,” Mitsubishi UFJ Group Global Markets Research analyst Sophia Ng said.

The Fed on Wednesday raised its policy rate by 75 bps for a second straight meeting, bringing total interest hikes since March to 225 bps.

After the meeting, Mr. Powell said while the labor market remains strong, other economic indicators have softened. He also hinted at an eventual slowdown in hikes.

Philippine shares rose following the Fed’s latest move. The Philippine Stock Exchange index went up by 142.50 points or 2.28% to close at 6,379.26 on Thursday, while the broader all shares index increased by 54.38 points or 1.61% to 3,424.96.

For Friday, Mr. Ricafort sees the peso moving within P55.60 to P55.90 against the dollar, while Ms. Ng expects it to remain below P56. — DGCR