IKEA and Mober bring in e-truck, more e-vans

January 31, 2023 | 12:02 am

IKEA Philippines’ electric trucks and vans

IKEA Philippines said on Monday that it remains committed to working towards being more “people and planet positive” by 2030.

In a statement, the home furnishings retailer said Mober, its on-demand delivery service partner, added 10 new electric vans and two electric trucks

It described the e-trucks as “the first set of electric delivery trucks in the Philippines,” which it will use to deliver in-store and online purchases to IKEA customers across Metro Manila.

“IKEA is proud to partner with an efficient and reliable service such as Mober who also align with the sustainability practices we observe across IKEA locations all over the world,” said IKEA In-store Logistics Manager Jarek Lesniewski.

PCC commissioner aims for renewed M&A appetite

January 31, 2023 | 12:02 am

THE new commissioner of the Philippine Competition Commission (PCC) has committed to “renewed appetite” for mergers, acquisitions and post-pandemic restructuring, the agency said on Monday as it welcomed the official.

In a media release, the PCC said that with the appointment of Lolibeth Ramit-Medrano as one of its commissioners, she would “champion robust merger reviews, competition cases, and market policies to help the recovering economy.”

Her appointment was announced by the Office of the President on Jan. 10. She will serve a seven-year term until 2030.

She will join other PCC commissioners Marah Victoria S. Querol and Michael B. Peloton whose term runs until 2028. As members of the Commission en banc, the commissioners will decide on the different market competition cases.

Ms. Ramit-Medrano previously served as undersecretary of the Office of the President, and director of the Bureau of Patents at the Intellectual Property Office of the Philippines.

The PCC is mandated to promote competition among businesses and enforce the broad powers of the Philippine Competition Act (PCA). It is also mandated through fair competition to ensure business innovation, increase global competitiveness, and expand consumer choice to improve public welfare. — Ashley Erika O. Jose

Philippines’ freedom of expression ‘partially restricted’

January 31, 2023 | 12:01 am

The Philippines ranked 7th overall (out of 10) and was labeled “partially restricted” in the inaugural Index Index by Index on Censorship. The index tracks the state of free expression across academic, digital, and media/press freedoms.

Londoners sell homes on WhatsApp as private sales market flourishes

January 31, 2023 | 12:01 am

Londoners-Bloomberg-395277595 — ALMOST a quarter of London homes were sold off-market in the final three months of last year, according to broker Hamptons International. — BLOOMBERG

A RECORD share of Londoners are shunning property portals and opting to sell their homes on their own terms — which are increasingly negotiated over WhatsApp.

Almost a quarter of London homes were sold off-market in the final three months of last year, according to broker Hamptons International. That’s more than double compared to the same period of 2019 — the final quarter before the pandemic — when under-the-table sales claimed 11% of total market share. It is also the highest quarterly figure since Hamptons began recording data in 2007.

The trend is particularly pronounced among Londoners with more expensive offerings. “Tougher conditions have increased the number of £1 million-plus ($1.2 million) homes being marketed quietly,” said David Fell, a senior analyst at Hamptons.

Almost a third of homes sold for £1 million or more were traded off-market in the final three months of last year, the highest quarterly share since 2017.

The rise in luxury off-market sales is partly due to a surge in activity at the top of London’s real estate market. New sales of homes priced at £5 million or more were 74% higher in the final quarter of 2022 compared with the pre-COVID average, according to data compiled by researcher LonRes. The dollar’s strong position against the pound is also drawing more international buyers to London’s luxury market.

Real estate broker Charles McDowell, whose Charles McDowell Properties firm advises wealthy clients on London real estate, says high-end buyers and sellers value privacy over anything else, and prefer to not showcase their homes on public portals. As such, he said, most negotiations have migrated to other spaces, and namely, WhatsApp.

“The need for internet sales is reducing, providing the agent has a strong network,” said Mr. McDowell, who sold four homes under the counter between October and December, including a £45-million property in Holland Park. “Our clients like WhatsApp because it is more instant and secure, as well as fast-becoming the preferred method of communication.”

Anthony Payne, managing director at LonRes, echoed that point. “This is a discrete sector,” he said, adding that homes will be “just as quietly withdrawn if they fail to meet their asking price.”

Mr. Fell, the Hamptons analyst, singled out another benefit of off-market transactions: they allow sellers to experiment with pricing “without leaving a digital footprint,” meaning they won’t be at a disadvantage “if they chose to take their home off the market with a view to trying again in six or 12 months’ time.”

Mr. Fell anticipates that strong off-market sales will continue through 2023. “Prime and super-prime sellers will look to quietly test the water to see if they can get the price they’re looking for,” he said.

That, however, doesn’t mean that available high-end properties will disappear from public view entirely. “We’ll also likely see more sellers start life off-market before deciding to market their home more widely if reaction from ‘black book’ buyers was favorable but they still weren’t quite able to secure a sale.” — Bloomberg

Entertainment News (01/31/23)

January 31, 2023 | 12:01 am

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The Clark Aurora Music fest returns

AFTER the success of the inaugural Clark Aurora Music Festival in June 2022, that drew more than 150,000 attendees, the music festival is returning this year on April 15 and 16. The music festival will feature Ben&Ben, December Avenue, Arthur Nery, Adie, MRLD, Lola Amour, Ely Buendia, Parokya ni Edgar, Kamikaze, Sponge Cola, Silent Sanctuary, and Mayonnaise. There will also be hot air balloons displayed which will light up Clark’s skyline. The Clark Aurora Music Festival is presented by EP!C EVENTS and EGGSTOP in cooperation with Clark Global City, the Clark Development Corp., and The Medical City Clark. For tickets, visit http://ticket.clarkaurorafest.com/, www.smtickets.com. They are also available at all SM Tickets outlets and via Shopee at https://shopee.ph/aurorafestival. For inquiries, call 0981-239-0349.

KAIA releases new single

FOLLOWING the release of the track “Dalawa,” Filipino pop group KAIA now have a new single, “Turn Up,” with sounds of early 2010s dance-pop. The song comes with a music video (performance version) directed by Denny Lee and Jake Jung. The visuals find KAIA performing the track with a synchronized choreography. “Because it’s upbeat and danceable, we thought a party concept will best for it, so people could have fun whenever they hear ‘Turn Up,’” KAIA said in a group statement. “We want our listeners to feel good as they vibe with the song.” The song will be part of KAIA’s debut EP, to be released in the coming months. It will be performed live at the Pinoy Pop Convention 2023, a fan gathering and celebration of Filipino pop culture and music. “Turn Up” is available on all digital music platforms worldwide.

Love is Blind S3 premieres in Feb.

A YEAR after the weddings, some old flames have reunited, while others try to navigate next steps in their relationships in Season 3 (S3) of the Netflix series, Love is Blind. Love is Blind: After the Altar premieres on Netflix on Feb. 10.

Clara Benin releases new single

SINGER-songwriter Clara Benin opens 2023 with a soothing tune that revels in the idea of “what ifs.” She said in a statement that the new single, “different…”, was inspired by the movie, When Harry Met Sally. “My song… is about having a really good friendship with someone and wondering if you two could take that relationship somewhere different.” The track is produced by Francis Lorenzo and Gabba Santiago, with her father, Side A’s Joey Benin, playing fretless bass. Clara Benin initially recorded the vocals and guitars in her father’s studio in December 2021, when she visited her family her hometown. The song is available on all digital music platforms via OFFMUTE.

PSE approves Upson’s nearly P5-B initial public offering

January 31, 2023 | 12:01 am

INFORMATION technology retailer Upson International Corp. has secured approval from the Philippine Stock Exchange (PSE) on its P4.88-billion maiden offering.

“We are both thrilled and grateful to have received the PSE’s approval for our planned initial public offering (IPO). This is a significant milestone as we look forward to sharing our growth prospects with everyone,” Upson President and Chief Executive Officer Arlene Louisa T. Sy said in a press release on Monday.

Subject to post-approval requirements, the local bourse issued the notice of approval to the company on Friday.

The maiden offering will allow Upson to sell up to 789.47 million primary common shares and up to 98.68 million secondary common shares, with an over-allotment option of up to 98.68 million secondary common shares, at P5.50 each.

The IPO’s price-setting date is set on Feb. 28, while the offer period will run from March 6 to 10. The tentative listing date is on March 16.

“Upson aims to raise gross primary proceeds of around P4.34 billion at its offer price, which will be used to fund the expansion of its store network and for other general corporate purposes,” the company said.

Among its plans is to open 250 new stores or an additional 25,000 square meters of retail space from 2023 to 2027. Its expansion plans also include adding warehouses and distribution facilities in nine other areas nationwide.

“The nationwide logistics infrastructure that supplements its retail network is to ensure uniform pricing of its products across all its branches,” the company said.

Upson’s nine-month 2022 net income grew by 68.6% to P400.23 million from P237.38 million in the same period a year earlier.

The company’s net sales as of September of last year also rose by 10.2% to P7.03 billion from P6.38 billion in 2021.

“Our long-valued suppliers and clients have helped us grow to where we are today. Going public is Upson’s way of sharing our growth and our success with them through partnership,” said Ms. Sy.

Upson operates a nationwide retail network of 200 stores as of Sep. 30, 2022, through its several wholly-owned retail brand outlets which are: Octagon Computer Superstore, Micro Valley, Gadget King, and Octagon Mobile.

It also has concept and specialty stores like Acer, HP, Brother, and Silvertec in select locations. — Justine Irish D. Tabile

How PSEi member stocks performed — January 30, 2023

January 31, 2023 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, January 30, 2023.

Shares decline as market awaits Fed, US data

January 30, 2023 | 9:00 pm

STOCKS dropped on Monday amid a lack of catalysts as investors await the US Federal Reserve’s policy decision and economic data releases.

The benchmark Philippine Stock Exchange index (PSEi) went down by 81.19 points or 1.15% to close at 6,970.97 on Monday, while the broader all shares index lost 37.67 points or 1.01% to end at 3,659.96.

“The market was jittery ahead of Fed key rate hiking and forward guidance, which is expected to remain hawkish,” First Metro Investment Corp. (FMIC) Head of Research Cristina S. Ulang said in a Viber message.

“Philippine shares started the week in the red, with attention specifically on the Fed interest rate decision out this week,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mr. Limlingan said investors are waiting for more signals from the Fed on its policy direction amid the current inflation environment in the world’s largest economy.

The US central bank is holding its first policy meeting for the year on Jan. 31 to Feb. 1, where markets widely expect a smaller 25-basis-point (bp) hike.

Data on Friday showed that US consumer spending fell in December, while inflation continued to subside, which could give the Fed room to further slow the pace of its rate hikes, Reuters reported.

The US central bank raised its fed funds rate by 50 bps in December to a 4.25%-4.5% range following four straight 75-bp increases, bringing total hikes for 2022 to 425 bps.

Mr. Limlingan added that investors are also waiting for the release of the US Dallas Fed manufacturing index, Institute of Supply Management manufacturing purchasing managers index, JOLTS job openings and US employment data.

“Locally, it will be a relatively quiet week, with the December producer price index set to be released on Tuesday and the January S&P Global manufacturing purchasing managers index on Wednesday,” he said.

Most sectoral indices closed lower on Monday except for financials, which went up by 9.23 points or 0.5% to close at 1,825.92.

Meanwhile, mining and oil dropped by 377.53 points or 3.25% to 11,223.83; property went down by 68.93 points or 2.21% to 3,047.04; industrials declined by 150.98 points or 1.52% to 9,737.85; services lost 23.71 points or 1.34% to close at 1,734.97; and holding firms retreated by 74.74 points or 1.08% to 6,817.61.

Value turnover went up to P8.3 billion on Monday with 1.21 billion shares changing hands from the P5.65 billion with 1.12 billion issues traded on Friday.

Decliners outnumbered advancers, 147 versus 57, while 38 names closed unchanged.

Net foreign buying declined to P135.02 million on Monday from P967.18 million the previous trading day.

FMIC’s Ms. Ulang placed the PSEi’s support at 6,850 and resistance at 7,100. — J.I.D. Tabile

How each segment contributed to Q4 2022 GDP

January 30, 2023 | 9:00 pm

THE PHILIPPINES weathered record inflation and interest rate increases last year by posting the fastest economic growth since 1976 — one of the strongest in Asia amid a dreary global outlook. Read the full story.

Peso weakens vs dollar

January 30, 2023 | 9:00 pm

THE PESO weakened against the dollar on Monday after China’s cabinet pledged support for the economy’s recovery.

The local currency closed at P54.545 versus the greenback on Monday, declining by 7.5 centavos from Friday’s P54.47 finish, data from the Bankers Association of the Philippines showed.

The peso opened Monday’s trading session at P54.55 per dollar. Its weakest showing was at P54.60, while its intraday best was at P54.45 against the greenback.

Dollars traded dropped to $687.86 million from $946.65 billion on Friday.

“The peso weakened amid prospects of increased global activity from reports of further economic support by the Chinese government,” a trader said in an e-mail.

China’s cabinet said on Saturday it would promote a consumption recovery as the major driver of the economy and boost imports, state broadcaster CCTV reported, at a time of cooling global demand as major economies teeter on the brink of recession, Reuters reported.

At a meeting chaired by Premier Li Keqiang, China’s state council — which functions as the cabinet — also vowed to speed up the rollout of foreign investment projects, maintain a stable yuan, ease cross-border travel and help companies to participate in domestic and overseas trade shows.

“The US dollar/peso exchange rate also corrected higher after the local stock market gauge, the Philippine Stock Exchange Composite index (PSEi), corrected lower for the second day in three days,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The benchmark PSEi went down by 81.19 points or 1.15% to close at 6,970.97 on Monday.

For Tuesday, the trader said the peso might weaken further against the dollar on expectations of caution in the market ahead of the US Federal Reserve’s policy meeting.

The trader sees the peso moving from P54.45 to P54.70 a dollar, while Mr. Ricafort expects it to trade at P54.45 to P54.65. — AMCS

Universal charge hike proposed to sustain off-grid power services

January 30, 2023 | 8:22 pm

THE Department of Energy (DoE) will propose raising the universal charge to sustain off-grid services provided by the National Power Corp. (Napocor) as diesel prices rise.

In a virtual briefing on Monday, the DoE and Napocor are considering a higher universal charge for missionary electrification (UCME), which funds Napocor’s operations in off-grid areas, many of which are reliant on generator power.

“As you know the price of diesel in the international market has been on the uptick in the last week or so, and for the rest of the year there are indications that unless there are economic developments in the global area that the price will remain high,” Energy Secretary Raphael P.M. Lotilla said.

Republic Act No. 9136 or the Electric Power Industry Reform Act authorizes the collection of UCME to fund Napocor’s operations, including those of its Small Power Utilities Group (SPUG), which serves remote areas not connected to the grid.

“Electricity prices in missionary areas are subsidized but the subsidy comes from on-grid customers. When increases are needed in order to support the off-grid areas, the on-grid areas customers will have to bear the burden, subject to the approval of the ERC (Energy Regulatory Commission),” Mr. Lotilla said.

The DoE and Napocor are proposing a UCME increase of about 15 centavos per kilowatt-hour (kWh), adding that they hope the ERC would “act swiftly on the petition.”

ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said in a Viber message that the ERC is currently completing its review of UCME applications.

“The ERC is committed to support the rest of the government in addressing the financing issues of NPC-SPUG in the short term and, in the long term, to come up with a viable program for sustainable development of our off-grid areas,” Ms. Dimalanta said.

Assuming that the ERC approves the petition, Bernadette T. Rivero, Napocor spokesperson, said the increase could take effect as early as May.

Mr. Lotilla said regulators are also taking steps to fund a sustainable solution that addresses the “financial woes that are crippling the operations of Napocor.”

As of Jan. 26, Napocor’s outstanding fuel payables to operate SPUG power plants and barges amount to P1.03 billion for the November-December billing period. Its payables to new power providers and qualified third parties amount to P5.51 billion, representing three to four months of arrears.

The DoE and Napocor’s board are planning to borrow P5 billion from government financial institutions, which will require special authority from the President.

“The big issue here is there is a funding deficit, there is fuel to be bought but the problem is the funding. If we can work together to manage a rationing system, it will be better for everybody; of course, we will do our best to garner additional funding but we have to be prepared to bear some of the cost,” Fernando Martin Y. Roxas, Napocor president, said.

If Napocor fails to secure funding, it will need to cut back on SPUG operating hours.

The proposed reduction in SPUG operating hours of SPUG power plants will start on March 1 and run until Dec. 31. Power plants that operate for 24 hours a day will be reduced to 15 hours, while power plants that operate for 16 hours will run for 12 hours. Those that operate for less than 16 hours will run for five hours.

Separately Mr. Lotilla said that the DoE is working on policy reforms to increase investment in the energy industry.

“It is the government that sets the policies but it is the private sector that drives investment and operations in the upstream, midstream and downstream sectors. All our efforts in this administration have been directed at reforming policies that blocked entry of new investment,” Mr. Lotilla said on Monday during the panel discussion of Philippine Development Plan 2023-2028 Forum.

Mr. Lotilla added that the DoE will take a market-driven approach to attracting more energy investment.

“One is the secondary price cap that was imposed way back in 2013… this has been difficult to lift at this time because of the impact on prices but we will have to deal with this if we want to attract more investment down the line,” he said.

The secondary price cap mechanism was designed to avert excessive rises in market prices. The ERC sets the secondary price cap at P6.245 per kWh in the event of a P9 per kWh breach in the rolling average of the generator-weighted average price over a three-day period.

“We’ve got to also to address the general attitude of government at all levels towards investment in energy,” Mr. Lotilla said, noting that local government units must not refuse the development of power projects.

“When we had typhoons last time in Luzon, a number of efforts to rehabilitate transmission lines could not be implemented immediately because some local government units refused. We’ve got to make all sectors realize that they cannot be blocking power projects that are going to benefit the entire country if we are to see the sustainable development of our economy,” Mr. Lotilla added.

He also called for the need to diversify the country’s indigenous sources to achieve energy security, adding that new technologies such as nuclear power are also an option.

“The tragedy of the past is that we tend to ban technologies but our effort is to be open to all technologies,” he added. — Ashley Erika O. Jose

Sole bidder for Southern Leyte port upgrade project disqualified

January 30, 2023 | 8:21 pm

THE Philippine Ports Authority (PPA) has declared a bid failure for the upgrade works at the Port of San Juan in Southern Leyte after the sole bidder failed to meet the formatting requirements of the bid submission.

“The lone bidder for the project, R.A. Bensig Construction & General Services, was declared disqualified for its failure to comply with the bid submission required,” according to a Jan. 23 memorandum approved by PPA General Manager Jay Daniel R. Santiago.

The project involves the improvement and expansion of the port operational area and construction of other facilities. The contractor will also be tasked with the construction of a passenger shed, pumphouse, powerhouse, and guardhouse. The contract package has an approved budget of P51.26 million, according to the PPA.

The lone bidder was declared “ineligible” because of deficiencies in its bid, according to the Bids and Awards Committee.

“Each bidder shall submit one original and six copies of the technical and financial proposals, properly labeled, book-bound, with hard cover and corresponding index tab, (but the) R.A. Bensig Construction & Services submitted its technical proposals with plastic cover, not book-bound, and without index tabs,” the committee said in its resolution.

Mr. Santiago has approved the recommendation to re-bid the contract.

The PPA is committed to modernizing port infrastructure to improve the user experience for shippers, the sea-going public, and tourists.

The United Nations Conference on Trade and Development said in a report that more investment is needed in maritime supply chains, including ports, shipping fleets, and hinterland connections, to boost sustainability and prepare for future global crises.

The Philippines was one of many countries that experienced serious vessel delays and container shortages during the pandemic.

In his first State of the Nation Address, President Ferdinand R. Marcos, Jr. said that his administration will work on improving the transportation system and modernize seaports to maximize the Philippines’ strategic location in the Pacific. — Arjay L. Balinbin