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Avon releases new floral fragrance

AS the warm weather returns and with the opening up of mobility with the end of the COVID-19 lockdowns, fragrances, along with cosmetics, have seen an increase in market demand.

Taking advantage of this interest, Avon has released its new fragrance, Eve Truth, in the Philippines, with actress Heart Evangelista serving as the ambassador for its ad campaign, “Own Your Truth.”

“It’s really part of our innovation to be launching different kinds of products within the beauty category, and because fine fragrances are increasing in terms of demand, we saw this as an opportunity,” Avon Cosmetic marketing director Anna Garces told BusinessWorld during the product launch on Feb. 8 in Makati City.

“The fine fragrances are the ones that are more concentrated,” Ms. Garces explained.

Eve Truth is an eau de parfum that means that it contains a high concentration of fragrance oils. Formulated by French perfumer Laurent Le Guernec, Eve Truth’s top notes are cassis, carambola (star fruit), black currant, and pomegranate, with middle notes of pink freesia, peony, and gardenia.

“Eve Truth is an intensely fresh floral fragrance created with an exclusive-to-Avon Natural Aura Accord that captures the olfactive family of fresh freesia combined with warm cedarwood,” explained Kariz Gabrin, Avon Cosmetics group category manager for fragrance, during the launch. “Personally, what I like about this product is it’s a very clean scent, it’s a pure scent that doesn’t mask your true self,” she said.

The fragrance comes in a 50ml geometric-cut glass bottle with a lime green tint.

As a perfume wearer, Ms. Garces said that she usually applies the scent on pulse areas “because that’s where there is warmth to distribute the scent.”

When a stronger scent is desired, she advised to spray it on clothes, on the back of the calves, and on the user’s hair too.

Avon’s Eve Truth is available at avonshop.ph, Lazada and Shoppee for P795. — Michelle Anne P. Soliman

BillEase, Rex Book Store to offer light, cardless installments 

CONSUMER finance app BillEase has partnered with Rex Book Store, Inc. to offer light and cardless installment payment options for the customers of the educational products retailer.

Under the partnership, BillEase and Rex Book Store will offer a “Read Now, Pay Later” program with flexible payment methods for customers without a debit card or credit card. Rex Book Store is the retail arm of local educational publisher Rex Education. 

In a statement, BillEase said students, parents and guardians, and practitioners shopping at Rex Book Store branches and Rex E-Store may pay upfront only one-third of the price of their selected books, assessments and digital learning products. They can then split the balance for up to 12 months.

“Meanwhile, law students can also get authentic law books and references and pay in light and easy installments. For instance, aspiring attorneys purchasing Ferdinand Tan’s Criminal Procedure 2021 Edition, priced at P2,320, will only have to pay P773.00 upfront and split the rest into customizable installment plans,” it added. 

BillEase Co-Founder and Chief Executive Officer Georg Steiger said the partnership aims to help learners by making Rex Book Store products more accessible. 

“BillEase is privileged to partner with Rex Book Store in equipping learners. Quality education usually requires a significant amount of money; some may find that a hindrance. We want to bridge that gap and help learners in developing the minds of future leaders,” Mr. Steiger said.

Marjorie Mallari, Rex Book Store chief revenue officer for retail, said the partnership with BillEase is part of the company’s efforts to improve its customer experience. 

“This becomes another opportunity for us to enhance our customers’ experience and help them achieve financial ease. They would have better control of their budget, given the offer of light and easy installments even without a credit card. With this, we hope that more and more people explore and maximize this program because Rex Book Store cares,” Ms. Mallari said. 

Rex Book Store is a learning solutions provider that offers educational products such as textbooks, teachers’ resource materials, modules, learning assessments, children’s books, digital products, and other services. It has branches in Recto, Morayta, Cubao and Ortigas in Metro Manila; Bicol region; Cabanatuan City; and Pampanga province.   

BillEase, launched in 2017, is an on-demand consumer credit app that provides personal loans, e-wallet top-ups, prepaid load, gaming credits, and a “buy now, pay later” program that allows customers to avail of installment plans even without a debit or credit card. — Revin Mikhael D. Ochave

Aston Martin DBX707: A beast of both worlds

It’s the DBX — only scarier

By Kap Maceda Aguila

WITH THE RELEASE of the DBX in 2020, Aston Martin formally joined the ranks of luxury marques deigning to put out sport utility vehicle — make that high-performance SUV — models to a global market that can’t get enough of them.

Powered by an AMG-supplied four-liter V8 putting out 500ps and 700Nm, the DBX gets from a standstill to 100kph in 4.5 ticks, on the way to a top rate of 291kph — incredible even by sports car standards.

But at such stratospheric heights in both pricing and performance, more is always more. So, Aston Martin obliged in the form of a souped-up DBX — which also earns a “707” suffix, reflecting the new power rating. Even the torque value gets a bump to 900Nm.

“The DBX isn’t a slouch, but Aston Martin always prides itself in craftmanship and luxury — in addition to having more pace in recent times. When I say more pace, Aston Martin wants to be on par with competitors such as the Lamborghini Urus, Mercedes-Benz G63, the Porsche Cayenne,” said Aston Martin Manila Chairman and President Marc Louie Tagle, in an interview with “Velocity” following the local launch of the DBX707 last Tuesday.

Aston Martin Manila calls the DBX707 “the pinnacle of the segment — with a unique combination of blistering performance, supreme dynamics, unmistakable style and absolute luxury. Engineered with an abundance of character and compelling capability, DBX707 is the ultimate SUV in every respect.”

Though still utilizing the aforementioned 4.0-liter mill, the Aston Martin engineers set about unleashing its full potential — employing ball-bearing turbochargers and “a bespoke engine calibration to liberate more power and torque.” The power plant is now mated to a nine-speed wet clutch automatic transmission, said to be able to manage the increased torque load versus a regular torque converter automatic. The transmission also allows faster gear changes and launch capability. Speaking of which, the DBX707 now boasts a standstill-to-100kph time of 3.3 seconds.

To better corral the vastly improved performance, the DBX707 wears massive carbon ceramic brakes (420mm in front, 390mm in the rear), gripped by six-piston calipers, and yet offer a large reduction in unsprung weight. “The brakes are gigantic, and will stop you on a dime,” underscored Mr. Tagle to this writer. “Aside from the straight-line performance, the suspension has been recalibrated, but isn’t stiff.”

One of the interesting observations about the Aston Martin SUV is that it effectively channels the look of its sedan counterparts. Mr. Tagle affirmed, “Yes, but not in an awkward way. Some brands want their SUVs to approximate their (sedans’) look and they end up looking weird. I may be biased, but for me, it translates. The back of the DBX707 is more of a Vantage, the front is a DBS/Vantage/DB11.”

Affixed up front is a larger front grille (in satin chrome) with double vanes and split horizontal bars to accommodate the increased demand for ventilation as a result of higher performance. A new DRL design is complemented with new air intakes, brake cooling ducts, and a changed front splitter profile.

Windows of the SUV boast dark satin chrome surrounds, and from the side the DBX707 receives a “more heavily sculpted profile” for a “ground-hugging stance.” It also receives soft-close doors.

A new lip spoiler appears on the roof wing to increase downforce even at speed and promote stability. The twin rear diffuser has been enlarged, and it gives emphasis to a new large diameter quad exhaust system.

“The thing with the DBX is that even if the silhouette looks small, when they stop inside, people are shocked at the space. It’s very comfortable. You can fit two six-footers front and back — no problem,” added Mr. Tagle. “It’s really the best of both worlds; it has pace, comfort, and space.”

Declared the executive, “Obviously, with sports cars, use is limited. With an SUV, you can load it up and go cross-country if you want to. It’s more usable.”

With a tag of P33.5 million, the DBX707 clears the garden-variety DBX pricing by almost P10 million. Mr. Tagle explained, “I know there’s a big uptick in price, but once you drive it and you’re a car enthusiast, you’ll understand where the premium goes.”

For more information, visit https://astonmartin.com.ph/.

Spurred on by the pandemic, hydroponics farming thrives

RAFAEL L. PAGALING

By Patricia B. Mirasol, Reporter

HYDROPONICS farming gained momentum in cities after the pandemic threatened to cut urban areas off from access to food, with the limited growing area required proving to be suitable for built-up areas with limited open space.

With only one square meter needed to grow 2.5 kilograms of lettuce, soil-less planting methods are demonstrating their potential in a rapidly urbanizing country, though there are examples of rural hydroponics farms.

With proof of concept having been demonstrated, the next phase of developing the industry has now moved to a fairly advanced stage — tailoring the nutrients to the plants deemed suitable to urban growing.

“Interest was generated during the pandemic, especially in the urban areas, (because) urban areas don’t have access to food,” Roberto F. Rañola, Jr., an agriculture economics specialist and chairman of the Philippine Association of Agriculturists, said.

“The market really is in urban areas,” Mr. Rañola said in a Viber call. Citing organic vegetables, he said, “Not sure if all were really organic like the (sellers) say they are, but they can command a higher price, and people go for it because they think it’s healthy.”

“It’s the same thing. There is a market niche for it,” he added.

FOOD SECURITY
The owner of Project Natural Farming, which conducts online agriculture training and supplies vegetables to hotels and restaurants, said that its usual market is the upper middle class, which are “the ones who are into salads and healthy living.”

Keith F. Hernandez, also a Technical Education and Skills Development Authority accredited instructor for natural farming, said interest had broadened with trainers “seeing a lot of people who want to study for food security.” 

According to the 2022 Food Security Index, the Philippines was 67th out of 113 countries in the food security matrix. President Ferdinand R. Marcos, Jr., in a January World Economic Forum meeting, said that food security is at the forefront of the national agenda.

“We must invest in facilities, logistics, and systems that bring nutritious food to our people, much like a grander scale of farm-to-table and increase the capacity of our institutions to enforce regulations that enhance food quality,” Mr. Marcos was quoted as saying.

About 2.9 million Filipinos suffered from involuntary hunger in the third quarter of 2022.

QUALITY CONTROL
An advantage of hydroponics is its “strict quality controls, producing high-quality products,” Mr. Rañola said.

Quality is the industry’s selling point, according to Rafael L. Pagaling, owner and Learning Site for Agriculture operator of Zennor Hydroponics Farm in Zambales. He said that farm sales grew 20% in 2022 as compared to 2021.

“Tumaas po ang sales (Our sales increased) because we are producing premium quality,” Mr. Pagaling said in a Viber message. “Mas gusto kasi ng mga customers namin mga veggies namin kasi hindi kami nag-spray ng (Our customers like our veggies more because we don’t use) pesticides at insecticides.”

“Virtually any vegetable” can be grown with hydroponics — provided the grower knows what each plant’s nutrient needs are, Mr. Hernandez told BusinessWorld by phone.

PROPER EDUCATION
Production costs, Mr. Hernandez added, can also be reduced by customizing nutrient solutions, which are different for each plant.

“People think na ’yung makita mo sa YouTube, ’yun na ’yun (that what you see on YouTube is the whole story),” he said. “There’s so much more. If properly guided, your cost of production for lettuce could be P10 per kilo. ’Yun ang hindi alam ng tao (That’s what people don’t know).”

Proper education for those interested in the field will help grow the hydroponics market in the Philippines, according to Avelino A. Alomesen, owner of Beyond Fresh by Don Avelino, an urban farm in Pasig City. He added in a Facebook message that another problem faced by those looking to scale was “the large amount of funds needed to establish a commercial hydroponic farm.”

Mr. Alomesen estimated the cost for such farms to be at least P1 million.

Mr. Pagaling, who also conducts tours around his Department of Tourism-accredited farm, said the answer lies in legislation for the hydroponics industry. A law would guide interested hydroponics growers in building their business.

“Hydroponics is not just an option or alternative; it is now part of the agriculture chain needed to produce a sustainable and continuous source of food, and an innovative livelihood,” he said.

The global hydroponics market is projected to hit $13.4 billion in 2027.

Analysts’ expectations on policy rates (February 2023)

THE BANGKO SENTRAL ng Pilipinas (BSP) is widely expected to raise benchmark interest rates at its meeting on Thursday, with some analysts forecasting a 50-basis-point (bp) increase after inflation accelerated to a fresh 14-year high in January. Read the full story.

Analysts’ expectations on policy rates (February 2023)

Carlos Saura, who led Spanish art cinema’s revival, 91

REUTERS

MADRID — Filmmaker Carlos Saura, who led the awakening of Spain’s art cinema after decades of fascist dictatorship under Francisco Franco and captivated international audiences with passionate flamenco choreography dramas, died on Friday. He was 91.

The Spanish Academy of Cinematographic Arts and Sciences said Mr. Saura, died at home surrounded by loved ones. He had been due to receive the academy’s Honorary Goya Award at the annual awards ceremony on Saturday.

Actor and director Antonio Banderas, one of Spain’s most famous faces, wrote on Twitter that “a hugely important part of Spanish cinema died with Carlos Saura, who leaves behind an oeuvre essential for a profound reflection on the behaviors of the human being.”

Spanish Prime Minister Pedro Sanchez tweeted: “Carlos Saura leaves us, a fundamental figure of Spanish culture.”

Although critics likened him to Sweden’s Ingmar Bergman for a similar concern with dreams, symbolism, and death, Mr. Saura dealt with intrinsically Spanish themes, often evoking the 1936-39 Civil War and the subsequent rule of Mr. Franco that ended in 1975.

His films enjoyed great popularity at home but it was his 1983 production of Carmen — a drama-within-a-drama involving a dance troupe and based loosely on the Georges Bizet opera — which gained him worldwide commercial success.

Carmen won prizes at film festivals, including Cannes, and continued Mr. Saura’s collaboration with choreographer Antonio Gades that had begun in 1980 with a dance version of Federico Garcia Lorca’s play Blood Wedding.

Along with the 1986 El Amor Brujo (The Bewitched Love), the films make up Saura’s Flamenco Trilogy, shot as stage productions, or even rehearsals, with minimal set design.

Mr. Saura first gained wide international fame with Cria Cuervos (Raise Ravens) in 1977, a symbolic treatment of death and Spanish society seen through the eyes of a young girl and starring his muse and common-law wife Geraldine Chaplin as her mother.

Mr. Saura, whose films shared a common theme of destructive, obsessive love, wed thrice and lived with Ms. Chaplin for 13 years. Ms. Chaplin worked on several scripts with him and starred in half his films until they separated in 1979.

Admired by American filmmaker Stanley Kubrick, Mr. Saura traced his criticism of bourgeois culture and use of fantasy and flashbacks to surrealist Luis Bunuel, a fellow native of the Aragon region and a close personal friend.

Bespectacled and introspective, Mr. Saura cultivated a hermetic image, and was more concerned with self-expression than profits. A critic once said he resembled a seminary student more than a member of the slick film world.

“For me the cinema is a type of drug, an obsession,” Mr. Saura once said. “What I like is that it is a solitary pleasure.”

Born in the northeastern city of Huesca in 1932, Mr. Saura was raised in Murcia in the arid south. His brother Antonio became one of Spain’s leading modern painters.

Mr. Saura dropped his industrial engineering studies in 1949 to become a photographer, and later studied journalism and film- making. He taught cinema and worked on several short films before making his first feature-length work, The Delinquents in 1960.

Influenced by Italian neo-realists, he never lost this early concern with social issues and condemned censorship under Mr. Franco, but never considered himself a political artist.

Mr. Saura had seven children, including a son by Ms. Chaplin and a daughter by his third wife, Spanish actress Eulalia Ramon. — Reuters

Treasury bills seen to fetch slightly higher rates

BW FILE PHOTO

RATES of the Treasury bills (T-bills) on offer this week could be steady or slightly higher, tracking secondary market levels ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting.

The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Monday, made up of P5 billion each in 91-, 182-, and 364-day papers.

The scheduled offering of three-year Treasury bonds (T-bonds) on Tuesday was canceled to make way for the government’s ongoing retail Treasury bond (RTB) offer.

“Upcoming Treasury bill auction yields could be higher after the comparable PHP BVAL (Bloomberg Valuation Service) yields corrected slightly higher week on week,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

At the secondary market on Friday, the rate of the 91-, 182-, and 364-day papers rose by 6.71 basis points (bps), 3.72 bps, and 2.02 bps week on week to 4.3439%, 4.9379%, and 5.3252%, respectively, based on the PHP BVAL Reference Rates published on the Philippine Dealing System’s website.

“According to our traders, the market will continue to trade sideways as we await the Monetary Board (MB) meeting outcome on Thursday and other developments in the RTB sale,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a report.

“On the back of the hotter-than-anticipated January inflation of 8.7% year on year and its trajectory, we now expect the MB to accelerate its terminal policy rate of 6% as the policy outcome in Thursday’s meeting,” Mr. Asuncion added.

The government last week raised an initial P162.18 billion from the rate-setting auction for its offer of 5.5-year RTBs.

Tenders for the offer hit P196.109 billion, or more than six times the P30 billion on the auction block. The RTBs fetched a coupon rate of 6.125%.

The offer period for the retail bonds is set to run until Feb. 17, while settlement is on Feb. 22.

Meanwhile, the BSP’s policy-setting Monetary Board is widely expected to raise benchmark interest rates at its meeting on Thursday, with most analysts penciling in a 50-bp increase after headline inflation hit a 14-year high in January.

A BusinessWorld poll last week showed 17 out of 18 analysts see the Monetary Board hiking borrowing costs at its first meeting of the year. Nine analysts see a 50-bp hike, while eight anticipate a 25-bp increase.

Headline inflation was at a 14-year high of 8.7% last month, faster than the 8.1% in December and 3% a year ago.

This was also above the 7.6% median estimate in a BusinessWorld poll and the 7.5% to 8.3% forecast range given by the central bank for the month.

The BSP in December raised rates by 50 bps, bringing its policy rate to 5.5%, the highest since November 2008 when it was at 6%.

The rates on the central bank’s overnight deposit and lending facilities were also increased to 5% and 6%, respectively.

The move brought total increases for 2022 to 350 bps.

Last week, the BTr raised P15 billion as planned from the T-bills it auctioned off as bids reached P37.786 billion, more than twice the amount on offer.

Broken down, the Treasury raised P5 billion as programmed via the 91-day T-bills, with tenders reaching P6.756 billion. The average rate of the three-month papers inched up by 3.4 bps to 4.186%, with accepted rates ranging from 4.12% to 4.245%.

The government also made a full P5-billion award of the 182-day securities as bids for the papers reached P10.15 billion. The six-month tenor was quoted at an average rate of 4.867%, declining by 0.8 bp, with accepted rates at 4.82% to 4.923%.

Lastly, the BTr borrowed P5 billion as planned from the 364-day debt papers as demand for the tenor reached P20.88 billion. The average rate of the one-year T-bill fell by 6.2 bps to 5.292%. Accepted yields were from 5.27% to 5.317%.

The Treasury wants to raise P130 billion from the domestic market this month, or P60 billion via T-bills and P70 billion via T-bonds. The T-bond borrowing program was initially at P140 billion but the government canceled two bond auctions make way for its RTB offer.

The government borrows from domestic and external sources to finance its budget deficit, which is capped at P1.47 trillion this year or 6.1% of gross domestic product. — Aaron Michael C. Sy

Megaworld Corp. says seven of its buildings are certified for healthiness

MEGAWORLD Corp.’s 8 Forbes Town

LISTED developer Megaworld Corp. said it now has seven buildings certified for their resiliency, safety and healthiness as issued by accreditor Healthy by Design Building Institute (HDBI).

In a press release, the developer said six of its office buildings and one of its residential condominiums received their “IMMUNE Building Standard.”

Three of its office buildings — 1800 Eastwood Avenue, 1880 Eastwood Avenue and eCommerce Plaza, located in Megaworld’s 18.5-hectare Eastwood City — were given IMMUNE “Powerful” or four-star certification.

Meanwhile, three buildings in the 50-hectare McKinley Hill — One World Square, Two World Square and Three World Square — received a “Resilient” or five-star certification.

Eight Forbes Town Road, a residential building of Megaworld within the five-hectare Forbes Town, also received a “Resilient” or five-star certification.

According to the company, it expects to receive two more IMMUNE certifications for its 8/10 Upper McKinley and 18/20 Upper McKinley once HDBI completes its assessment this month.

All of the seven certified buildings are under the portfolio of Megaworld’s real estate investment trust, MREIT, Inc.

The certification is said to “help mitigate the effects of pandemics and other bacteriological and toxicological health threats by creating and promoting healthy buildings of the future.”

It measures the indoor environment parameters, devices and available technologies, specialized equipment, dedicated personnel and amenities that promote operation and health rules.

The certification has three labels, which are “Strong” for three stars, “Powerful” for four, and “Resilient” for five stars. — Justine Irish D. Tabile

‘A venue for brands to shine together’

PGA Cars Director Benedicto T. Coyiuto on the company’s new multi-brand space

Interview by Kap Maceda Aguila

VELOCITY: How did the idea of the PGA Cars Studio come about? How was its design and execution arrived upon?

BENEDICTO T. COYIUTO: When this huge facility became available to us, we immediately and completely rebuilt it into one that keeps to PGA Cars standards. The service center was the first to be constructed — fitted with the latest equipment adhering to the requirements of our brands. While doing this, the idea for a lifestyle center was also being considered. We wanted to reimagine traditional auto showrooms and make the customer journey quite different from what is usually found in dealerships. We would like guests to experience the luxurious features and to feel the passion of our brands in a more immersive but subtle way. Through what came to be known as PGA Cars Studio, we give guests a taste of the premium lifestyle that goes with our brands.

These basically dictated the design of the place. The materials — wood, metal, glass — reflect the textures and contours of our car models’ exteriors and cabins. The décor is automotive in theme, harmonizing classic and contemporary touches into a rich mix of opulent design.

How do you administer over a shared space for four independent, very distinct brands?

Balance is key. Yes, each of our brands has a distinct identity. But there are also common values between them, like a focus on heritage, technology and luxury. So at PGA Cars Studio, we take each brand’s identity and strengths, then blend both the shared and the contrasting characteristics to create an interesting venue where no one brand shines alone, but instead all brands are able to shine together.

It’s said that while there are several concepts in this setting, there are also no boundaries — which allows them to basically spill into one another in one seamless experience. Can you discuss this, please?

PGA Cars Studio’s car display area can be transformed into a theater or exhibition space, or expanded to accommodate additional cars, depending on the type of activity. The café space can also be adjusted to suit a cocktail party or a more formal dinner setting. Several walls of the venue are blank canvasses for art and multimedia installations. Should an event call for an even larger space, the mezzanine and the service facility can easily be set up to take in more guests. The spaces can adapt to casual or formal, daytime or evening settings. All these are possible because one concept within PGA Cars Studio does not disrupt, but rather complements, the other concepts. This allows the boundaries, the flexibility and capability for each one to flow onto the other.

How is the curation process like for what are featured in the Studio? Over the weeks, we’ve seen changes in the cars (and brands) on the showroom floor. How are the models chosen?

We curate the cars on display in such a way that the presentation always becomes interesting. Some of the factors considered are the activities lined up for a certain period, the guests who are expected to visit, or the latest models we feel are best to be highlighted. The selection changes nearly every day, so even regular guests can have an experience that is at once familiar and fresh. We consider the car display more like as an art installation, not static but dynamic.

How does PGA Cars Studio complement the fixed showroom spaces or locations of the four brands?

Our brands’ showrooms are well appointed, welcoming guests with premium amenities. PGA Cars Studio expands what are possible in showrooms by presenting not just the cars and their features, but also the wealth of experiences and delights that come with the ownership journey.

Can you tell us how Antonio’s was chosen as the dining/food locator?

Antonio’s in Tagaytay is as much a driving destination as it is a dining destination. Its status as one of the best restaurants not only in the Philippines, but also in Asia, makes it a top choice among diners who would not settle for nothing but the finest.

For our part, PGA Cars’ brands — Porsche, Audi, Lamborghini and Bentley — are undisputed leaders in their segments in the luxury market. This means that in choosing a restaurant group for the Studio, PGA Cars cannot go for anything less than the recognized leader in the field. This affiliation between a culinary institution and the global luxury powerhouses with which PGA Cars is a partner with is complimentary. Discerning guests can only benefit from the enhanced experiences PGA Cars Studio offers.

WFP warns food stocks running low in quake-hit northern Syria

REUTERS

GENEVA — The World Food Programme (WFP) is running out of stocks in northwest Syria and called to open more border crossings from Turkey after both countries were ravaged by earthquakes, the UN food aid organization said on Friday.

“Northwest Syria, where 90% of the population depends on humanitarian assistance, is a big concern. We have reached the people there, but we need to replenish our stocks,” Corinne Fleischer, WFP regional director in the Middle East, Northern Africa and Eastern Europe, told reporters.

“We are running out of stocks and we need access to bring new stocks in. The border crossing is open now, but we need to get new border crossings open.”

Currently, there is only one open crossing, at Bab al-Hawa, between Turkey and the opposition-held northwest Syria. It was shut briefly after Monday’s massive earthquake and aftershocks, but reopened on Thursday.

The International Organization for Migration said that 14 trucks carrying humanitarian aid, including electric heaters, tents, blankets, had crossed into northern Syria from Turkey on Friday.

Six trucks carrying UN aid made it across the border on Thursday. Ms. Fleischer stressed that opening a second border crossing was essential to getting aid to northwest Syria.

“We need the second opening because of the delay of the transport to the damaged roads,” she said. “We were able to manage with this in the circumstances before the quake, now we are not anymore. We need both crossings to be open.”

A Turkish official said on Friday that Ankara is discussing reopening a border crossing into Syrian government territory and also looking at opening another into Syria’s opposition-held Idlib region. — Reuters

Mexican genetically modified corn spat could affect US sugar trade

REUTERS

NEW YORK —  Mexico’s proposed ban on genetically modified (GM) corn imports could impact other areas of trade with the United States, including the large sugar and corn syrup exchange, according to an independent report released on Thursday.

Mexico’s government of Andres Manuel Lopez Obrador approved a ban of all GM corn from 2025, a regulation that would block most US corn exports to Mexico. The US is the world’s largest corn exporter and is against the ban.

Mexico claims GM corn can hurt its ecosystem by killing some species, an allegation some scientists question. The country also wants to boost local, non-GM corn production.

The report, from trader and supply chain services provider Czarnikow, said the restriction would also block shipments of US high fructose corn syrup, a sweetener used in the food and beverage industry.

“This could lead to severe repercussions. The US could potentially ban the 1.35 million tons of imported Mexican sugar (70% raw sugar, 30% white),” analyst Adrian Torrebiarte said in the report.

According to the US Department of Agriculture, Mexico accounts for nearly half of all the sugar the US imports annually that is projected at 3.46 million short tons (ST) in 2022/23.

“A ban by the US on Mexican sugar could lead to severe complications. The US could give more TRQ allocations to Brazil, the Dominican Republic, or Central American countries,” according to the report.

The TRQs, or tariff rate quotas, are the share of imports that follow World Trade Organization import rules for reduced tariffs. That quota is currently at 1.61 million ST. The TRQs plus the Mexican imports make up 90% of all sugar the US buys every year.

Those low-tariff quotas only cover raw sugar, so Mr. Torrebiarte says the US would still have to replace around 400,000 tons of white sugar, also known as refined sugar, currently imported from Mexico, in case the GM corn ban goes ahead and derails bilateral trade. — Reuters

Yields on government debt rise as Jan. inflation hits fresh 14-year high

YIELDS on government securities (GS) increased last week as headline inflation accelerated to a fresh 14-year high in January, which could prompt the Bangko Sentral ng Pilipinas (BSP) to increase benchmark rates again at its upcoming meeting.

Bond yields, which move opposite to prices, went up by 10.2 basis points (bps) on average week on week, based on PHP Bloomberg Valuation Service Reference Rates as of Feb. 10, published on the Philippine Dealing System’s website.

Rates at the short end of the curve went up, with the 91-, 182- and 364-day T-bills rising by 6.71 bps, 3.72 bps, and 2.02 bps to fetch 4.3439%, 4.9379%, and 5.3252%, respectively.

Similarly, the belly of the curve, also increased, with the rates of the two-, three-, four-, five-, and seven-year T-bonds gaining 3.42 bps (to 5.3838%), 3.87 bps (5.6136%), 7 bps (5.7881%), 10.49 bps (5.9279%) and 14.88 bps (6.0981%), respectively.

The long end of the curve rose, with yields on the 10-, 20-, and 25-year debt papers increasing by 18.23 bps (to 6.2272%), 21.05 bps (6.5395%), and 20.85 bps (6.5357%).

Total GS volume traded reached P14.118 billion on Friday from P9.068 billion seen on Feb. 3.

Noel S. Reyes, Security Bank Corp. chief investment officer for Trust and Asset Management Group, said US jobs numbers and high Philippine inflation in January were the main drivers for bond yields last week.

“Longer bias for hawkishness needs to be undertaken by both the Fed and BSP (Bangko Sentral ng Pilipinas) as a result,” he said in an e-mail.

Similarly, the bond trader said inflation data drove yield movements last week.

The trader said the latest retail Treasury bond (RTB) sale and the Fed’s comments of a higher peak rate this year also affected rates.

“[It] indicated strong demand, therefore, influenced the secondary market. Yields are somewhat anchored to the RTB demand despite the bad news (inflation),” the bond trader said in an e-mail.

The Bureau of the Treasury last week raised an initial P162.180 billion from the rate-setting auction for the 5.5-year RTBs.

The RTBs fetched a coupon rate of 6.125%. The papers were awarded at rates ranging from 5.375% to 6.24%, bringing the average to 6.022%.

Meanwhile, Philippine headline inflation soared to a 14-year high of 8.7% in January, above the 7.5% to 8.3% forecast of the central bank for the month. It also marked the 10th straight month inflation was above the BSP’s 2-4% target.

Inflation last month was higher than 8.1% in December and 3% a year earlier.

Abroad, Fed Chair Jerome H. Powell last week said borrowing costs may reach a higher peak than traders and policy makers anticipate, Bloomberg reported.

“We think we are going to need to do further rate increases… The labor market is extraordinarily strong,” he said.

Data released earlier showed employers added 517,000 new workers in January while unemployment fell to 3.4%, the lowest rate since 1969.

For this week, Mr. Reyes sees remittances and the central bank’s policy action influencing this week’s trading as well as US inflation and retail sales data.

“So far, from the looks of it, the sell-off [last] week seemed to be welcomed by the market which I think should be the same case as well for any sell-off [this] week,” he said.

He added that with the latest inflation data, the market is expecting a 50-bp increase from the BSP at their policy meeting this week, as anything lower could push back further the timeline of achieving a lower inflation trend.

The Monetary Board is set to review its policy settings on Feb. 16, Thursday. It hiked key policy rates by a total of 350 bps last year to control surging inflation. — Abigail Marie P. Yraola

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