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Isabela corn farmer enjoys bountiful harvest with LANDBANK’s aid

LANDBANK helped Isabela corn farmer Levy Mateo turn down private lenders with unfair terms. She now enjoys an affordable interest rate of only 2% per annum under the ACEF Lending Program, allowing her to save for the future and provide a more comfortable life for her family.

Born to a family of farmers in the remote barangay of Sindun Bayabo, corn farmer Levy Mateo learned about the value of hard work at a young age.

Levy started helping out in their corn fields as a young student and eventually became a full-time farmer. She relied on the three-hectare corn field she inherited from her parents as a means to support her own family, especially in raising her three children.

But despite Levy’s diligence over the years, she struggled to enjoy her earnings and save for her family’s future, as she had to allocate a large portion of her income to pay the hefty interest from loans she regularly availed from a private lender.

For 12 years, Levy turned to a nearby rice and corn mill that offered loans to farmers in order to sustain her corn production. The mill charged an interest rate of 30% per annum, and as a condition to avail of a loan, required borrowers to sell all of their produce to the mill at a low price — leaving Levy and other farmers with little profit.

“’Yung panggastos sana para sa pangangailangan ng aming pamilya, ibabayad pa namin sa napakalaking porsyento ng interes. Pati ang presyo ng mais na ibebenta, sila [rice mill] rin ang nag-didikta,” said Levy.

At the height of the COVID-19 pandemic in 2020, Levy’s income decreased further due to the limited movement of goods and strict imposition of lockdowns in the area. She was then faced with a grim circumstance: if she continued to avail of high-interest loans from the mill, there will be almost nothing left for her family and their daily expenses.

LANDBANK support

It was during this time that Levy was encouraged by a fellow farmer to avail of a loan under the Agricultural Competitiveness Enhancement Fund (ACEF) Lending Program offered by the Land Bank of the Philippines (LANDBANK) and the Department of Agriculture (DA).

“Nung nakahiram ako sa LANDBANK, hindi na ako lumipat sa iba. Sa LANDBANK na ako laging lumalapit para sa aming mga pangangailangan sa sakahan. Napakaganda talaga dahil ang baba ng interes ng ACEF,” said Levy.

Under the Program, Levy availed of an initial loan for working capital amounting to P120,000 — which has since grown to P600,000 — for the purchase of farm inputs such as seedlings and fertilizers.

With the Program’s affordable interest rate of only 2% per annum, Levy was able to provide a more comfortable life for her family while repaying her loan on time. She was also free to choose a buyer in the market who can offer the best price for her produce, which can reach as high as P1,000 per cavan, multiplied by Levy’s average yield of 400 cavans per harvest.

Banking on her good experience as a borrower, she has encouraged fellow farmers to seek assistance from LANDBANK to finance their production, including her own daughter, who likewise ventured into farming.

“Ang laki ng pasasalamat ko sa LANDBANK dahil talagang umunlad at guminhawa ang aming pamumuhay. Hindi na kami nagigipit sa pagbabayad ng interes,” she added.

Under the ACEF Lending Program, farmers, fishers, their cooperatives and associations, as well as micro and small enterprises (MSEs) can borrow funds from LANDBANK to boost their agricultural productivity.

Farmers and fishers can borrow up to P1 million while cooperatives, associations, and MSEs may avail of loans up to P5 million for the purchase of farm inputs and equipment, as well as the acquisition or establishment of agri-based production and processing machineries, equipment and facilities, among others.

LANDBANK has released a total of P9.2 billion in loans under the ACEF Lending Program in support of over 38,900 borrowers composed of small farmers and fishers, cooperatives, and MSMEs nationwide.

 

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At the home of Zara, fast and slow fashion collide

MARIAN Fernandez, 56, a former employee of Inditex, rearranges clothes at the store window display of her fashion shop Maazi in downtown A Coruna, in northern Spain, Nov. 18, 2022. — REUTERS/MIGUEL VIDAL

A CORUNA, Spain/LONDON — In Spain’s A Coruna, two contrasting fashion business models collide — pitching the growing demands for the clothing industry to become more sustainable against the constant need to drive sales.

This rainy, windswept city on the rugged Atlantic coast is the unlikely headquarters of Zara-owner Inditex — the world’s biggest fast fashion retailer.

It also hosts small boutiques offering high quality, durable products that consider themselves an alternative to the fast and affordable fashion propelling Inditex’s annual sales of 28 billion euros ($30 billion).

Inditex’s massive output of garments was a factor behind the European Union’s (EU) pledge last year to reverse the “overproduction and overconsumption of clothing.” It wants all clothes sold in the bloc to be “long-lived and recyclable” by 2030.

The EU will announce its most significant proposals for the industry yet at the end of March, environment commissioner Virginijus Sinkevičius told Reuters on the sidelines of an event in Portugal last week.

The European Commission wants to ensure companies only manufacture the number of products they need. It will stop short of imposing restrictions, instead asking firms to police themselves to be called sustainable, Mr. Sinkevičius said.

“If you release tons and tons of clothes, textiles, shoes into the market, you will have to collect it,” he said.

Around 5.8 million tons of textile products are discarded every year in the EU, equivalent to 11 kg per person. A truckload of textile products is landfilled or incinerated somewhere in the world every second, according to EU figures.

Inditex had 565,027 tons of garments on the market in 2021, more than the 528,797 tons in 2018, according to its annual report. The company may disclose a further increase when its 2022 annual report is published next month.

So far, Inditex shows no sign of slowing production. But it is changing some processes, aiming to reduce its environmental impact while sticking to its strategy of regular new ranges.

Central to that plan is using recycled materials and cutting water, energy, and raw material usage, Inditex told Reuters in emailed responses to questions.

“We believe that it is not a question of how much (is manufactured), but of how,” the company said.

Half of Inditex’s garments were produced in a more sustainable way in 2021 — by for example using organic cotton or fibers that do not pose a risk to endangered forests — compared with 9% in 2018, the company said in its annual report, without giving specific data on how these materials reduce its environmental impact.

Inditex adjusts production to match customer demand and only 2% of stock needs to be recycled or donated, it said in its e-mailed responses to questions.

The company is targeting net zero emissions by 2040, and its strategy has been approved by the Science Based Targets Initiative (SBTi), a body which scrutinizes companies’ sustainability policies.

LEAVING LITTLE TRACE
Some of A Coruna’s smaller boutiques are run by former Inditex designers or sales staff who left to set up their own operations, emulating Inditex founder Amancio Ortega who established his first Zara store in A Coruna in 1975.

Among them are Jorge Toba, 37, and Antia Montero, 31, who worked at Inditex in purchasing and design. They launched children’s clothing brand The Campamento in 2018, producing just two, made-to-order collections a year, mostly with organic fibers.

They don’t add new products mid-season and they charge online shoppers for returns to encourage conscientious shopping.

“This is a very polluting industry, so we try to leave as little trace as possible,” Montero said at a warehouse in the heart of the city from which the business is run.

‘A DROP IN THE OCEAN’
Inditex, itself, is working with more than 100 startups specializing in recycling fibers.

Circ, a US company focusing on textile-to-textile recycling in which Inditex invested last year, is developing new technologies to separate cotton and polyester blended in most clothes, the first step to produce clothing from used or waste textile materials, its president Peter Majeranowski said.

But Circ and its competitors are only capable of producing 1% of the textiles needed to make the 109 million tons of clothes per year that the global fashion industry churns out.

“It’s really a drop in the ocean,” Mr. Majeranowski said. The goal is to recycle 10% of annual production by 2030, he said.

Marian Fernandez, 56, spent 25 years at Inditex, rising to become one of the top managers of its luxury brand Uterque before setting up her own fashion shop, Maazi, in downtown A Coruna. She posts weekly videos on social media teaching customers how to build a “responsible” wardrobe with dresses that can be used for multiple occasions and seasons.

Boutique labels in A Coruna could show the way to others.

“It’s in new and smaller companies where innovation starts,” said Achim Berg, a senior partner at global firm McKinsey & Co. — Reuters

Sustainability certification gains favor with fisherfolk

PHOTOGRAPH © ALO LANTIN/WWF-PHILIPPINES/ WWF.ORG.PH

By Patricia B. Mirasol, Reporter

FISHERFOLK said they are working towards a Marine Stewardship Council (MSC) certification following initiatives being pursued by the tuna industry to ensure that its operations adhere to international best practices.

“Kami ngayon is nasa proseso pa lang (We’re still in the process of getting the certification),” Suzette B. Villano, an official of the Sagnay Tuna Fishers Association in Sagnay, Camarines Sur, said.

The Philippines Tuna Handline Partnership (PTHP) was granted a 5-year certification in October 2021. PTHP is composed of the Gulf of Lagonoy Tuna Fishers Federation, Inc., the Occidental Mindoro Federation of Tuna Fishers Association, and the Philippine Association of Tuna Processors, Inc.

What they are all shooting for is the blue MSC label applied to wild fish or seafood from fisheries that meet international norms for sustainable fishing. The label signals to consumers the fish they purchase comes from a sustainable source.   

Ms. Villano told BusinessWorld via Zoom that one of the certification requirements is the use of handlining, a method that involves a handheld line with one or more baited hooks attached to the end.   

The requirements for fisherfolk participating in the initiative include registration with the Department of Agriculture and the licensing of their equipment. 

“Marami pa kaming inaasikaso [We’re still working on the requirements],” added Ms. Villano. “Bawat huling isda, dapat naka-record (Each catch has to be recorded).”

Ms. Villano said the changes in fishing conditions, possibly the result of climate change, include Sagnay’s receding shoreline and the growing difficulty of finding fish.

“Dati sa lugar namin, kahit hindi ka na pumunta sa malayo, may isda (You didn’t have to venture far to fish before),” she said. “Ngayon hinahanap na ang isda (Nowadays, you have to look for the fish).”

Handline fishing is sustainable, she said, because it does not negatively affect the ecosystem.

STRINGENT PROCESS
“Our partner small-scale fisherfolk are already able to export their products to the international market,” said Raisa D. Pandan, World Wide Fund for Nature (WWF)-Philippines’s technical operation manager of Sustainable Tuna Partnership (STP) 2.

“WWF-Philippines works closely with the PTHP to ensure that fisherfolk are represented at the negotiating table with processors and exporters,” she said via Messenger.

The global conservation group facilitates the tuna fishery improvement project (FIP), a program that aims to establish sustainable fishing practices and improve the livelihoods of fisherfolk, such as Ms. Villano’s group and others in the PTHP.

The fisherfolk have decided to shoot for MSC certification on their own, with guidance from the WWF-Philippines, which runs the STP.

It took PTHP ten years to get its MSC certification, according to Joann P. Binondo, WWF-Philippines’ overall program manager for STP 2. “We started in 2011 with the Tuna FIP.”

“MSC is really difficult and expensive to obtain and maintain, especially for small-scale handline fisheries from a developing country,” Ms. Binondo said via Messenger.

“I salute the tuna fishers from Lagonoy and Mindoro (who) committed to continue over the years despite the stringent process,” she said.

REIGNITED INTEREST
The Lagonoy Gulf and Mindoro Strait fisherfolk MSC certification has “reignited the interest” of securing the certification among General Santos City’s tuna fishing industry, Ms. Pandan said.

In 2021, she added, the Fresh Frozen Seafood Association of the Philippines and the Socsksargen Federation of Fishing and Allied Industries, Inc. signed a partnership with the SARGEN Fish Port Tuna Handline Fishing Association, Inc. with the aim of establishing a Fisheries Improvement Project (FIP) in General Santos.

“The FIP is a precursor to their goal to achieve an MSC certification, an undertaking we support and welcome,” she told BusinessWorld.

Ms. Pandan added that it’s “not only about how to make our fishers more competitive, but also how to ensure that they reap the benefits that they should rightly be receiving as producers of export commodities at the international scale.”

Tuna and tuna-like species account for 20% of the entire value of the world’s marine capture fisheries, per the Food and Agriculture Organization of the United Nations. Worldwide demand for sustainably sourced fish has been rising in recent years, including in the UK and US.

Ms. Villano, who estimates that it might take her group five more years to get MSC-certified, says they expect their catch to command higher prices at the conclusion of the process.

The current price of tuna, she said, is P280-P300 per kilo during the lean months of April to July.

“Sana mabigyan pansin ’yung mga maliliit na mangingisda, para matanggal ang mindset na ang mga fisherfolk poorest among the poor (I hope small-scale fisherfolks get more attention, to eliminate the mindset that fisherfolk are among the poorest of the poor),” she added.

Fed’s Daly says more hikes needed to cool inflation

FEDERAL RESERVE Bank of San Francisco President Mary Daly said policy makers will likely need to raise interest rates higher and maintain them at elevated levels for a longer period of time.

“It’s clear there is more work to do,” Ms. Daly said in a speech Saturday at Princeton University in New Jersey. “In order to put this episode of high inflation behind us, further policy tightening, maintained for a longer time, will likely be necessary.”

Ms. Daly said inflation remains high in each sector — goods, housing and other services — and that the bumpy nature of incoming data paints an unclear picture for disinflation momentum. While Daly doesn’t vote on policy this year, she is a participant in Federal Open Market Committee meetings and discussions.

The Fed has tightened aggressively in the last 12 months, lifting its benchmark policy rate from nearly zero to a target range of 4.5% to 4.75%, though policymakers have recently slowed the pace of rate increases. They downshifted to a quarter-percentage-point move on Feb. 1 after hiking by a half point in December, which followed four consecutive 75-basis-point (bp) increases.

“This tightening, while pronounced, was and remains appropriate given the magnitude and persistence of elevated inflation readings,” Ms. Daly said.

During a post-speech question and answer session she discussed the potential impact of lags but made clear that the Fed could not afford to pause with inflation still too high.

“In my judgment it would be a mistake to say we’ve done all we need to do, it’s all going to be working down the road,” she said. “That’s where you have to think about continuing tightening.”

In a call with reporters following the speech, Ms. Daly repeated that she supports raising rates to somewhere between 5% and 5.5%, roughly in line with the December dot plot median of 5.1%.

Inflation, which reached a 40-year high last year, fell in the last three months of 2022, but ticked back up in January. That month’s data also showed strong consumer demand and blockbuster hiring by firms.

Ms. Daly said while it’s important to recognize the recent reversal “it is not an indicator, necessarily, that the trend has changed.”

Several of her colleagues have since said that interest rates may need to go higher than they previously thought, and investors are now betting on a peak around 5.45%. That level could be achieved by 25-bp hikes at each of the three following meetings. Ms. Daly did not specify in Saturday’s speech nor in a call with reporters afterward how much more tightening she thinks is appropriate, but told reporters that she is focused on more on the level the rate needs to get to than the pace.

“It would be enough of a preponderance of evidence that the economy is on a track that is going to require significantly more tightening that would lead me to say that we should change the pace,” Ms. Daly said. “Most of my energy right now is focused on thinking about the level at which we’ll hold.”

Policy makers will update their economic projections at their March 21-22 meeting.

Ms. Daly also spoke about the uncertainty of what will most drive future inflation. Before the pandemic, Fed officials struggled for years to get prices up to the central bank’s 2% target as an aging workforce and sluggish productivity growth weighed on inflation.

Now, new factors including the reshoring of production, a domestic labor shortage, the need for increased investment in technology and infrastructure amid a transition to greener sources of energy, and a potential change to inflation expectations could all pressure inflation upward. How these forces interact with the disinflationary ones of the past remains to be seen, Ms. Daly said.

“We don’t know what the trend will be,” Ms. Daly said. “But we do know that, while we continue to diffuse the ongoing inflation shock, we need to be working to gather data and research that illuminates the likely path forward.” — Bloomberg

Mitsubishi eyes extension of CARS program

At the 60th anniversary celebration of Mitsubishi Motors Philippines Corp. (MMPC) held in Sta. Rosa, Laguna are (from left): MMPC President and CEO Takeshi Hara, Philippine Economic Zone Authority Zone Manager Mary Jane Sanchez, Mitsubishi Motors Corp. (MMC) President and CEO Takao Kato, Sta. Rosa Mayor Arlene B. Arcillas, and MMC Executive Vice-President for Sales Yoichiro Yatabe. — PHOTO FROM MITSUBISHI MOTORS PHILIPPINES CORP.

By Revin Mikhael D. Ochave, Reporter

AUTOMOBILE MANUFACTURER Mitsubishi Motors Corp. (MMC) is eyeing a three-to-five-year extension of its commitment to the country’s Comprehensive Automotive Resurgence Strategy (CARS) program, citing the effects of the COVID-19 pandemic.

“Let’s say (a) three-to-five-year (extension) — something like that,” MMC President and Chief Executive Officer Takao Kato said after being asked for an update during an ambush interview on the sidelines of the 60th anniversary celebration of MMC’s local unit, Mitsubishi Motors Philippines Corp. (MMPC), in Sta. Rosa City, Laguna last Friday.

Mr. Kato said the company aims to add a new model for local production at its Sta. Rosa manufacturing plant once the extension request is approved by the Philippine government, along with other locally produced models such as the Mirage hatchback, Mirage G4 sedan, and the L300 utility vehicle.

“If (the) government can think about CARS program extension, we would be very happy. In that case, we definitely want to introduce another new model to this MMPC manufacturing plant. That is my plan. In 2023, I would like to decide (on) that,” Mr. Kato said.

The P27-billion CARS program, signed in 2015, grants fiscal incentives and budgetary support to MMPC and Toyota Motor Philippines Corp. (TMP). The two car manufacturers are required to produce 200,000 units over a six-year period.

Under the program, MMPC produces the Mirage and G4 while TMP manufactures the Vios subcompact sedan. However, both car manufacturers have asked for an extension from the Philippine government due to the effects of the pandemic on their manufacturing operations. TMP has requested for a three-year lengthening. MMPC’s participation in the program is set to end this year while TMP’s will end in 2024.

Asked on the planned new model to be produced at MMPC’s Sta. Rosa plant, Mr. Kato said that he has yet to reach a final decision.

Previously, the Department of Trade and Industry (DTI) said it is hoping that MMC would consider the local production of its Xpander multipurpose vehicle (MPV) model. “I have not decided yet. But not only Xpander… we now have a lot of plans to introduce new models. Definitely, some of those new models will come to this MMPC manufacturing plant. I have not decided yet. But probably, in the next couple of months, I’d like to decide,” Mr. Kato said.

“Last time, we had a meeting with President Marcos. We have requested to extend our CARS program more because during the COVID (pandemic), we (could not) operate… very well because as everybody knows, (the) pandemic was terrible, and economic activity was almost stopped,” he added.

The executive said that Mr. Marcos is “very positive” about providing an extension to MMPC’s CARS program commitment. “He completely agrees with my opinion and he agrees that during the pandemic, economic activity almost stopped.” Mr. Kato said, and maintained that MMC remains committed to the Philippines following the celebration of MMPC’s 60th anniversary.

“I am very happy, and very proud that MMPC can celebrate the 60th anniversary here in the Philippines because, for Mitsubishi Motors, the Philippines is one of the most important markets. I know that Filipino people love Mitsubishi Motors very much,” Mr. Kato said.

MMPC President Takeshi Hara said that the company remains committed to the Philippine market, moving forward. “We have successfully surpassed all the challenges over a period of time, and we will remain steadfast and strong. We will continue to work as a team to further achieve our goals,” he explained.

Meralco stock jumps on earnings, supply talks

By Abigail Marie P. Yraola, Researcher

SHARES in Manila Electric Co. (Meralco) moved upward last week as investors bought on its pre-pandemic-beating income report and news about negotiations with Aboitiz Power Corp. for a lower rate under another emergency power supply agreement (EPSA).

Data from the Philippine Stock Exchange showed Meralco ranking sixth in value turnover with P2.01 billion worth of 6.35 million shares changing hands from Feb. 27 to March 3.

Meralco shares finished at P315 apiece on Friday. On a weekly basis, the stock inched up by 1.9% from its P309.20 close on Feb. 23. For the year, the stock has grown by 5.4%.

Andrei Jorge G. Soriano, a research associate at China Bank Securities Corp., attributed the stock’s movement to its earnings report, which was released on Monday last week.

“Strong performance was driven by higher energy sales as volumes grew 6%,” he said in an e-mail, citing a sustained economic reopening such as the resumption of face-to-face learning and business activities, as well as better income contributions from its power generation business.

Mr. Soriano added that the price action in Meralco could have been influenced by flows related to the MSCI rebalancing, which concluded on Tuesday.

In a separate e-mail, Joylin F. Telagen, research head at IB Gimenez Research Securities, Inc., said that Meralco’s “excellent” financial report was also a factor and that price movement was due to traders and investors wanting to have a slice of the P11.028 cash dividend.

“For the year 2022, that will be a total of P16.834 versus the P15.283 in 2021, up by 10.15%,” she added.

The company booked a 10.2% increase in its consolidated core net income to P27.11 billion in 2022 compared with P24.61 billion a year earlier as energy sales surpassed pre-pandemic levels.

Energy sales grew by 6% to 48,916 gigawatt-hours (GWh) last year from 46,073 GWh in 2021, driven by sustained growth across all customer segments.

Meralco’s reported net income, which is adjusted to exclude one-time charges, grew by 21% to P28.43 billion.

Meanwhile, its consolidated revenues grew by 33.9% to P426.53 billion last year from P318.55 billion a year earlier.

Ms. Telagen estimates Meralco’s earnings at P6 billion for the first quarter of 2023 and P29.5 billion for the full year.

For Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., Meralco’s net income in the first quarter may increase by 5%-9% based on initial projections while for full-year 2023, it may grow between 12% and 16%.

“These are hinged on the following assumptions: stronger energy sales for the year as the economy continues with its expansion; and improvements in the company’s cost efficiency,” he said in an e-mail.

Other reports also said that the electricity seller was negotiating for a lower rate with AboitizPower to forge another 300-megawatt EPSA for one month.

The company’s previous EPSA with AboitizPower unit GNPower Dinginin Ltd. Co. ran from Feb. 3 to 25. It was their second emergency supply deal to immediately replace a separate stalled agreement.

Earlier last week, Meralco said it was working on securing a power supply contract after its deal with GNPD ended on Feb. 25.

Last year, the company secured an EPSA with AboitizPower for P5.96 per kilowatt-hour from Dec. 15, 2022 until Jan. 25, 2023.

Mr. Soriano said that should the company secure a new EPSA, its impact is more likely on consumers.

“We think that it has minimal impact on MER’s profitability given that MER is a distributor, and power costs are generally passed through to consumers,” he said, referring to Meralco’s ticker symbol.

He added that under a new power supply deal, “rates would likely have a similar fuel pass-through mechanism, especially given the outlook for tighter supply as we head into the summer months.”

For Mr. Tantiangco, a new EPSA is deemed beneficial to Meralco as it would somehow help the company in managing its purchased power cost.

Mr. Soriano said investors should consider prospects of continued growth in energy demand as Meralco’s management placed energy sales volume in January to be up by 5%.

He also said that Meralco’s history of issuing dividends may highlight its position as a defensive stock. “Investors are also likely to closely monitor for developments relating to Meralco’s pending rate rebasing.”

For Ms. Telagen, Meralco is good to hold in the portfolio of investors looking for a stable and better dividend payout. She pegged the company’s support and resistance levels at P309 and P320, respectively.

For Mr. Soriano, support is at P308 while resistance is at P330.

Mr. Tantiangco sees immediate resistance at the P318 level and the next resistance at P329. He expects the support level at the P295-P300 range.

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

Style (03/06/23)

KEDS Champion Canvas in White

Natori looks to roots in Spring

AN ode to Josie Natori’s Philippine roots and the art of Spanish culture, the Spring 2023 collections are an artisanal affair. An exotic exploration of bold prints, vibrant colors, and fun silhouettes, inspired by the beauty of Boracay, El Nido, and Amanpulo in the Philippines. After a celebratory year, marking 45 years, this next chapter is a culmination of Natori’s signature comfort and glam. Vibrant colors and ombrés bring the collections to life, enhanced by details such as micro beads, embroideries, and Maria Clara-inspired sleeves. The Natori Ready-To-Wear collection includes packable, throw-on-and-go dresses, caftans, bralettes, and other unique separates that feel versatile with an in or out of office appeal. New textures such as Guipure lace and calado open work, are inspired by Filipino craftsmanship and a dress Josie Natori’s mother, Angelita wore decades ago. The Josie Natori collection is resort ready. Textures, such as luxe linen, breathable cottons, and sultry silk feel rich and timeless. Piña, a key new fabric, is made from pineapple fibers, creating a fresh and natural appeal. The collection is enhanced with embroidery and sleek new shapes that feel slimming yet roomy at the same time. Natori is available at Rustans Makati and Rustans Shangri-La For more information, visit www.Rustans.com.

Footwear picks for Women’s Month

MARCH 8 is International Women’s Day and to celebrate, here is a list of shoes every kind of woman would appreciate, whatever stage she is in her life. The styles under Merrell’s Bravada collection may look dainty, but they’re tough enough for the trails as they are on pavement. Featuring a sleek take on the outdoor sandal, they include the Bravada Backstrap, Bravada Cord Wrap, and Bravada 2 Wrap. Buy any two pairs in any Merrell concept store and receive a Merrell branded T-Shirt free until April 30. Check out the full collection and more at www.merrell.com.ph. Then there is the Keds’ Champion which now comes in spring-ready shades of Sunny Lime, Light Pink, and Light Blue. Constructed in the signature circular vamp oxford style, the white Champion is a timeless classic that pairs well with virtually anything. This Women’s Month, get P500 off on a colored Champion pair when one buys a white pair — available online at www.keds.com.ph and Keds retail stores nationwide. While Sperry is known for their classic boat shoes, they also have a selection of classy and trendy minimalist sneakers. This March, get P500 off for a minimum purchase of P5,000 on full-priced women’s styles in a single receipt transaction. This promo is available exclusively in www.sperry.com.ph and retail stores nationwide.

The Peninsula’s spa journey

ENJOY a full-day spa journey this March at the Peninsula Manila Fitness Center. Start with a 30-minute body scrub, 90-minute full body massage, and a 60-minute facial treatment. Also, get full access to exclusive yoga classes in the morning and enjoy the Naturally Peninsula Afternoon Tea Set and breakfast menu. Available every Tuesday, Thursday, and Saturday from March 1 to 31,

Fendi’s womenswear Autumn/Winter 2023

FOR AUTUMN/WINTER 2023, Kim Jones explores classicism and elegance through the lens of subtle subversion. Drawing directly upon the wardrobe of Delfina Delettrez Fendi — how she wears her Fendi archive with an instinctive sense of self-expression — here is a collection which plays with binaries: the exploration and elevation of deconstruction; the interpolation of gendered archetypes; the disturbance of ladylike sophistication. The pieces are designed to be worn every which way. Masculine tailoring and traditional fabrics are twisted into feminine forms, while elements of utilitarianism appear throughout: boilersuits, aprons, uniforms. Lace is lacquered and layered; flashes of fetishism appear through slips of lingerie peeking through, or thigh-high lace-up boots. A clean-cut mac falls open to flash its sequined lining; bias-cut draped dresses or Persian lamb bibs appear with harnessed straps. In a perfected perspective on punk, knitwear appears cleanly slashed or gently warped. Felted wools are slightly shrunken, ribbed knits left unbuttoned, or worn askew. Satin dresses with a twisted drape are romantically trailed by billowing scarves. With graphic motifs drawn from the Autumn/Winter 1996 Fendi archive seamlessly expressed in intarsia, alongside Karl Lagerfeld’s 1981 sketches for multipurpose knitwear offering a formative inspiration, the history of the House is reflected anew. There is also a new handbag, the Fendi Origami, with a shape which has been engineered to transform between two distinct silhouettes.

COS and Linda Farrow collaborate on eyewear

COS celebrates the launch of sunglasses for the first time in Philippines through a pioneering collaboration with eyewear designer Linda Farrow. Established in 1970, Linda Farrow was a pioneer in showcasing glasses as true fashion accessories. The collaboration’s nine-piece collection contains five iconic styles, from aviator to wayfarer which elevate the everyday. Featuring cut-outs, gold accents, and a spin on contemporary color ranges, quality sits at the forefront of design while all lenses provide 100% UV protection. The collection is available globally on cos.com and in the COS Store at SM Aura for a limited time only.

Furla introduces its first bag in biodegradable leather

FURLA has reinterpreted an icon from its 1990s archives with a modern twist. Unica Furla Earth Limited Edition is the first Made in Italy bag in biodegradable leather realized in collaboration with Cyclica. Thanks to Oleum, the brand which identifies the biodegradable leather line produced by Cyclica, the Unica Furla bags follow a circular model for their production. The leathers, which are meant to become Oleum originate from traceable European farms, which are by-products of the food industry and are vegetable tanned with wastewater from oil production, thus avoiding the direct use of aldehydes and glyphosate. The leather is metal-free and environmentally non-toxic. Dyeing is done with components such as corn, spirulina, logwood bark, and fern, free from synthetic agents and heavy metals. Performance comparable to that achieved through traditional manufacturing is conferred by natural elements such as beeswax or specific salts used for the finishings. Unica Furla Earth Limited Edition retains Furla’s architectonic DNA: a maxi or medium-sized crossbody bag with a sculptural profile that is softened by soft curves with well-finished details such as the metallic turn-lock closure with the stylized arch logo and the Furla macro lettering impressed on the external bottom. Colors range from mogano (purple) to mais rosa (pink), from spirulina (azure) to clorofilla (green) in addition to deep black and pure white. Unica Furla Earth Limited Edition is available globally on Furla.com and in selected flagship stores. In the Philippines, Furla is located at Central Square in Bonifacio High Street Central, Greenbelt 5, Newport Mall, Power Plant Mall, Rustan’s Makati, Shangri-La Plaza East Wing, and online at Trunc.ph, Rustans.com, and Zalora.

Gap blooms this spring

GAP brightens a wardrobe with the colors of spring. The Men’s default Gap outfit — denim and tees — has a springtime touch with floral logo tee updates. Women can find poplin shirts, sustainably-made denim, sweatshirts, and dresses in spring colors and florals. Even the kids get a touch of spring. Visit the following Gap stores to catch these Spring Essentials for all: Glorietta 4, Shangri-la Mall, SM Mall of Asia, SM Megamall, Trinoma, Alabang Town Center and Abreeza, Davao, or shop online at gap.com.ph.

Rustan’s summer trends

RUSTAN Marketing Corp. has put together a list of some of summer’s must-have items, designed to make one’s summer vacation enjoyable and stress-free. First there is Nuxe Super Serum containing natural hyaluronic acid and micro-spheres of fractionated botanical oils delivering powerful anti-aging correction in a single bottle. The Nuxe Super Serum Gift set includes a pink quartz Gua Sha, a facial massage tool known for its firming properties. Achieve flawless legs with Sally Hansen Airbrush Legs, water- and transfer-resistant leg makeup for coverage of freckles, veins, and imperfections. There is also the Sally Hansen Airbrush Legs Illuminator with a hydrating and quick-drying formula. No time for a full-face makeup? Max Factor’s Masterpiece Divine Lashes Waterproof Mascara is all that is needed. This mascara provides clump-free application and soft volume that builds up layer after layer. Achieve the latest summer hairstyles with a bouncy and glossy look using the VS Sassoon Moistwrap Straightener. Its innovative Moistwrap technology delivers moisture retention, protection, and smoothness, resulting in shiny and frizz-free hair. Meanwhile, the BaByliss Hydro-Fusion Air Styler can give salon-level locks at home. This large rotating brush with ceramic barrel and soft polishing bristles will guarantee a smooth, frizz-free finish that adds shape and bounce to your locks. Add a pop of color to your nails with the OPI Nature Strong Collection, a high-performing, natural origin nail lacquer with long-lasting properties and various vibrant color options. Start the day with the luminous scents of Solinotes Freesia Eau de Parfum (EDP) with freesia notes, osmanthus and sandalwood. Guess Bella Vita Rosa EDT opens with sparkling Italian lemon, cassis, and quince, leading to a lush exotic floral heart of jasmine, magnolia, cypress, and muguet, and ends with orris flower, moss, and sandalwood for an unforgettable feminine trail. There is also the zen scent of the Maison Margiela REPLICA Matcha Meditation EDT, with bergamot and orange blossom essences, matcha tea accord and benzoin. Or try an intensely sensual and opulent note with Viktor&Rolf Flowerbomb Ruby Orchid EDP, featuring intense ruby flower orchid and red foxy vanilla bean accords, vine peach and red fruit notes. Packing your bags for a trip? Try Samsonite’s award-winning Beamix collection, which seamlessly merges form and function to create a sleek and minimalist luggage masterpiece. Equipped with an integrated fingerprint lock that stores up to 20 unique fingerprints and an Aero-Trac Suspension II wheel system that minimizes rolling vibration. For a go-to daypack, the High Sierra Loop Backpack is a jack-of-all-trades with a multitude of compartments, adjustable compression and bottom webbing straps. Stay breezy with the Jack Nicklaus Geometric Print Polo Shirt whose StayDri moisture-wicking technology and UV protection make it an ideal choice for summer activities. Elevate an ensemble with the Champion Classic Twill Hat, a brushed cotton twill cap that boasts a unisex fit and leather adjustable back strap. Its minimalist design is accented by the embroidered Champion script logo. Go on summer dinner dates in style without compromising comfort with Easy Spirit Morgana Loafers, a classic slip-on that boasts superior traction, flexibility, and arch support. For a more casual affair, the Easy Spirit Aggie Slip-on Loafers have cloud-like cushioning, a breathable sock liner, and flexible outsole.

Montblanc opens new NEO 3.0 boutique concept

MONTBLANC has opened a new boutique at Solaire Resort Entertainment City at Parañaque. Leather goods, watches, and writing instruments from the On the Move collection were highlighted at the opening. The boutique is the first in the Philippines to showcase the newly enhanced NEO 3.0 concept. Key collections and products are incorporated into the store’s design as unique themes. The designer Noé Duchaufour-Lawrance drew inspiration from the fluid, cursive handwriting evocative of Montblanc’s signature fountain pen. With new materials such as walnut and travertino, black lacquer and wood; a minimalist design, and warm lighting, the space is elegant and inviting, allowing patrons to focus on the most important aspect — the products themselves. The boutique also pays tribute to its origins by incorporating a Meisterstück counter, which pays homage to the signature Meisterstück collection. The boutique’s immersive experience is further elevated with leather wall fittings that highlights the Maison’s diverse key leather collections, ranging from the timeless Meisterstück to the recently launched collection made for those with a fast-paced and active lifestyle — Extreme 3.0. The Montblanc boutique is on the Ground Floor of The Shoppes, Solaire Resort Entertainment City. It is open from 11 a.m. to midnight daily.

Lazada holds first 11-day sale

ECOMMERCE pioneer Lazada celebrates its 11th anniversary with an 11-day long #LazadaPH11Birthday, which runs from March 3-13. Lazada has teamed up with brands such as Forever 21, Penshoppe, and Mikana Jewelry to help fashionistas bring their dream outfits to life. As part of the celebration there is a LazLook Mannequin exhibit at the Activity Center of Market! Market! from March 2 to March 29, showcasing epic styles, stackable vouchers, up to P1,000 cashback as well as deals for as low as P99 and up to 80% off. Lazada has online and in-app challenges and giveaways. Together with partner banks, Lazada is giving shoppers the opportunity to avail of vouchers that they can use during the 11th Birthday Sale, like Bank of Commerce’s discount for up to P2,000 off (on a minimum spend of P2,500), Metrobank’s P1,000 voucher (on a minimum spend of P2,000), and many more. Lazada has created an Instagram filter where shoppers can play to get vouchers worth over P100,000. These are just some of the deals to be found during the sale. To stay updated on all the programs and promos, follow https://www.facebook.com/LazadaPhilippines.

Shopee launches the 3.3-3.15 Mega Shopping Sale

SHOPEE launches its first mega campaign of the year, the 3.3-3.15 Mega Shopping Sale with deals and offers for shoppers. Ongoing until March 15, users can enjoy daily free shipping vouchers at ₱0 minimum spend, 15% off vouchers, up to 50% off deals, and more. Every day of the sale, shoppers can enjoy discounts and vouchers on various categories. From March 1-15, shoppers, fashion and beauty finds will feature discounts of up to 90% and ₱199 & Below deals. Shopee offers a personalized shopping experience with SkinCam, an AI-enabled diagnostics tool that identifies different areas for skin improvement and recommends a skincare routine complete with products to address each concern. And just in time for the sale, Shopee partnered up with even more brands to make personalized skincare shopping more accessible for all. These include skincare products from Innisfree, Laneige, Pond’s, Olay, and Senka. Shopee users can look forward to special discounts when they use exclusive voucher codes from its bank partners. Qualified Credit, Debit and Prepaid cardholders (new and existing Shopee users) can enjoy savings of up to ₱500 and cashback of up to ₱1,500 with any of the voucher codes when they purchase on Shopee. More details can be found on the 3.3 Partner Promos page.

Heat wave in India hinders gov’t efforts to stockpile wheat

REUTERS

NIWAI, India — A heatwave in northern and central India at a time the crop is ripening is threatening to damage grains and dent the country’s wheat production for the second straight year.

The reduction in production amid a drop in inventories to the lowest level in six years may force the world’s second biggest producer of the grain to allow imports after banning exports last year.

“Winter hasn’t ended yet, but during the day temperatures rise like summer,” said Rameshwar Chowdhury, who has planted wheat on six acres in the Niwai village in the northwestern state of Rajasthan. “We are irrigating fields to limit the impact, but beyond that we can’t do anything.”

The maximum temperature in some wheat-growing areas jumped above 39 degrees Celsius for a few days in February, nearly 10 degrees Celsius above normal, according to weather department data.

Higher temperatures would lead to early maturity of the crop and grains could be shrivelled, like they were last year, said Mr. Chowdhury.

India recorded its highest ever maximum temperature in February and the weather office has warned the country is likely to experience another heatwave in March, especially in the key wheat-producing central and northern states.

A heatwave in March could further harm the crop, which has already been showing signs of stress, said another farmer, Gopilaal Jaat.

In 2022, a heatwave in March curtailed India’s wheat production to 100 million tons against local consumption of 103.6 million tons, estimates the US Department of Agriculture’s Foreign Agricultural Service.

India last month estimated wheat production in 2023 could rebound to a record 112.2 million tons, but trade bodies are less optimistic due to the heatwave.

“Higher temperatures in March can trim output by 4 to 5 million tons. We are estimating production of around 106 to 107 million tons,” said Pramod Kumar S, president of the Roller Flour Millers’ Federation of India (RFMFI).

Global and Indian trade houses are even more bearish and forecasting a far bigger drop in production. “We trimmed the estimate to 103 million tons from 109 million tons,” said a New Delhi-based dealer with a global trading firm, adding production could fall to around 100 million tons if temperatures remain above normal in March as forecast by the weather department.

Lower production would keep wheat prices above the government’s buying price and encourage farmers to sell to private players, the dealer said.

State purchases fell by 53% in 2022 to 18.8 million tons, pushing up local rates and forcing the government-backed Food Corp. of India (FCI) to release 5 million tons of the grain from its reserves to cool prices.

But the sales, which are ongoing, would halve the government’s stocks at the start of the April-March marketing year to 10.2 million tons, the lowest in six years, estimates USDA.

To replenish stocks, the government is aiming to procure about 34 million tons from farmers in 2023. “The government will do everything to ensure food security and to keep prices under control. It can even allow imports if needed,” said Mr. Kumar of RFMFI. — Reuters

Multisys partners with Bruneian firm DST to co-develop a digital platform for telcos

From left to right: DST Vice-President of Information Technology, Digital & Innovation, Digital Business Andy Lai Boon Ho; DST CEO Radin Sufri Radin Basiuni; DST Chairman Awang Haji Sofian bin Hj Mohd Jaini; Multisys CEO & President Victor Aliwalas; and Multisys Vice-President for Technology Nico Penaredondo

PLDT-backed software solutions provider Multisys Technologies Corporation is set to co-develop an all-in-one telco, fintech, and mobile commerce digital platform with Brunei’s largest telco company, Datastream Digital Sdn Bhd (DST).

The two companies recently signed a Joint Intellectual Property (IP) Development and Commercialization Agreement in Bandar Seri Begawan, Brunei. The ceremony was witnessed by Awang Haji Sofian bin Hj Mohd Jaini, Acting Managing Director of Brunei Investment Agency and Chairman of DST Digital. Also in attendance was Her Excellency Marian Jocelyn R. Tirol-Ignacio, Philippines Ambassador to Brunei Darussalam.

Under the agreement, the two companies will co-develop an end-to-end telco business operations support system, which will be integrated with five flagship platforms of Multisys. This aims to expand the horizon of services offered by DST—providing solutions beyond the traditional telco services.

Multisys CEO & President Victor Aliwalas shared that the platform will be jointly marketed as a Platform as a Service offering beyond Brunei and the Philippines.

“This Joint Intellectual Property Development and Commercialization Agreement is a step further into our synergetic journey with DST. We are eager more than ever to spearhead the development and architecture of a specialized digital ecosystem, side by side with DST who has been very collaborative and professional from day one. Our legacy is to help seamlessly manage various operational activities for the telco market, not just in Brunei or the Philippines, but also in the entire region,” Aliwalas said.

To accomplish this feat, DST is allocating about 15 local DST developers to collaborate with around 20 Multisys’ full-stack developers and project team. Through this synergy, DST and Multisys aim to roll out the first tranche of its IP development by the fourth quarter of the year.

DST CEO Radin Sufri Radin Basiuni said, “Co-owning Intellectual Property is a fundamental direction for a DigitalCo innovation strategy. The core of our vision is also believing in our own teams. DST has geared to increasing its development team and also undertook reskilling and upskilling exercises to all its disciplines to realize its digital aspirations. Around 15 local DST developers will be involved in the collaboration with Multisys in-house development team. DST further continues to harness and develop further the Bruneian innovation culture through its own DST InnoLab and Brunei Innovation Lab.”

 

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Yields on government debt rise ahead of inflation data

YIELDS on government securities (GS) rose last week on expectations of faster February inflation.

GS yields, which move opposite to prices, went up by an average of 10.41 basis points (bps) week on week, based on PHP Bloomberg Valuation Service Reference Rates as of March 3, published on the Philippine Dealing System’s website.

Rates at the short end of the curve rose, with the 91-, 182-, and 364-day Treasury bills (T-bills) going up by 11.82 bps (to 4.617%), 3.49 bps (5.1764%), and 16.25 bps (5.6089%), respectively.

The belly of the curve also increased, with the rates of the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) going up by 1.42 bps (to 5.6673%), 0.18 bp (5.8025%), 3.74 bps (5.9454%), 8.47 bps (6.0847%), and 12.81 bps (6.2815%), respectively.

At the long end of the curve, the 10-, 20-, and 25-year debt papers gained 13.18 bps, 20.65 bps, and 22.50 bps to yield 6.4496%, 6.7439%, and 6.758%, respectively.

Total GS volume traded reached P7.773 billion on Friday, lower than the P13.022 billion on Feb. 23.

Yields rose as traders were on the defensive after the Bangko Sentral ng Pilipinas (BSP) said February headline inflation could have reached 9% last month, a bond trader said via e-mail.

“Local yields broadly moved up as the BSP inflation forecast hinted at potentially higher inflation for February and raised expectations of a stronger local policy rate hike this month,” the trader said.

“While local markets were definitely looking forward to the central bank’s estimate, bond yields already increased as the stronger-than-expected PCE (personal consumption expenditures) inflation report in the US,” the trader added.

February inflation likely settled within the 8.5% to 9.3% range, the BSP said last week. This would follow January’s 8.7% print, which was the quickest since November 2008.

If realized, February would mark the 11th straight month that inflation would exceed the BSP’s 2-4% target range.

The upper end of the forecast would also be the fastest headline print recorded in more than 14 years or since the 9.7% recorded in October 2008.

The Philippine Statistics Authority will release the February consumer price index report on March 7, Tuesday.

BSP Governor Felipe M. Medalla said on Friday that the central bank may hike rates by another 50 bps this month if February inflation rises above 9%.

The Monetary Board will hold its second policy meeting for this year on March 23.

At its Feb. 16 review, the BSP hiked benchmark interest rates by 50 bps for a second straight meeting, bringing its key rate to 6%, the highest in nearly 16 years.

The Monetary Board has increased borrowing costs by a total of 400 bps since May 2022 to tame inflation.

Meanwhile, the US PCE price index shot up 0.6% last month after gaining 0.2% in December, prompting hawkish comments from US Federal Reserve officials.

“While the moves of the US central bank might still continue to induce short-term fluctuations in the market, local bond yields are largely seen to be more vigilant about the BSP’s policy moves and domestic inflationary dynamics instead after the BSP decided to un-anchor its moves from the US Federal Reserve last February,” the bond trader said.

A second bond trader also said in a Viber message that expectations of a higher terminal rate in the US have been priced in.

“Bond markets will likely remain defensive with inflation continuing to put pressure on central banks globally, including BSP. As such, BSP will likely counter any moves of the Fed with an equal magnitude of tightening,” the second trader added.

For this week, both traders expect secondary market yields to continue rising due to the February inflation report.

“Yields are likely to move broadly higher [this] week amid expectations of continued uptick in the domestic inflation. A stronger inflation print will give enough room for long-term yields to continue increasing. However, short-term yields might move faster due to potentially stronger rate hike expectations from the BSP,” the first trader said.

“I expect traders to remain defensive in the upcoming weeks as they recalibrate their expectations based on current market outlook,” the second bond trader added. — Bernadette Therese M. Gadon

How PSEi member stocks performed — March 3, 2023

Here’s a quick glance at how PSEi stocks fared on Friday, March 3, 2023.

Analysts’ February 2023 inflation rate estimates

PHILIPPINE INFLATION likely further quickened in February, with upward pressure expected from higher prices of cooking gas and food, analysts said. Read the full story.

Analysts’ February 2023 inflation rate estimates

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