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Foreign currency loans down as of Sept. 2021

FOREIGN currency loans disbursed by banks were lower as of September 2021, reflecting tighter credit standards and the availability of other sources for funding.

Data released by the Bangko Sentral ng Pilipinas (BSP) late Friday showed outstanding loans of foreign current deposit units (FCDUs) of banks dropped 2.1% to $15.8 billion as of September 2021 from $16.2 billion at end-June.

FCDUs are BSP-approved bank units that perform transactions involving foreign currencies, such as accepting deposits and handing out loans.

More than three-fourths (78.5%) of FCDU loans as of September 2021 have a tenor of more than one year.

During the period, 65% or $11.219 billion of the total FCDU loans were extended to Philippine residents. The remaining 35% or $6.047 billion went to non-residents.

By industries, exporters (14.8%) got the biggest chunk of the credit, followed by public utilities (6.7%), and producers/manufacturers including oil companies (5.1%).

BSP data showed that local banks disbursed 87.6% or $15.132 billion of the foreign currency loans, while $2.134 billion were from foreign bank branches and subsidiaries.

Meanwhile, FCDU deposit liabilities stood at $45.952 billion as of end-September, inching up by 0.5% from the $45.644 billion as of end-June.

The overall FCDU loans-to-deposits ratio increased to 37.6% as of end-September from the 35.4% seen at the end of the previous quarter.

Last week, the central bank eased the requirements for the foreign currency deposit system, allowing covered banks to only notify the BSP of their intention to engage in expanded/FCDU operations. Prior to this, banks were required to ask for the BSP’s approval to engage in such activities.

The BSP has also allowed Islamic banks and digital lenders to engage in FCDUs.

There were 76 banks with FCDU authority as of May 2021 — L.W.T. Noble

Style (01/03/22)

New Mobile Legends official merchandise

SNK ATK Design Lab Enterprises, Inc. revealed the latest chapter of the Mobile Legends: Bang Bang official merchandise collection via Facebook and Instagram. Dubbed “Volume 2,” the new collection is a mix of technical outerwear and bold graphic prints based on Mobile Legends: Bang Bang characters and the design DNA of SNK ATK, focused on urban and utilitarian apparel. “I wanted to create a collection that tackled functional apparel with our outerwear, but also showcase the vibrance and variety of Mobile Legends: Characters in our graphic pieces,” said Psalm Alfafara, Creative Director at SNK ATK. “Finding that perfect mix between accessible technical clothing and making it inclusive for all fans was a challenge — something we were always eager to take on as a design company and the team really came together to deliver quality merchandise for fans.” The outerwear for the new collection was designed with functionality and wearability in mind, with wind-and water-resistant properties, while creating unique artwork for the Mobile Legends: Bang Bang characters used in the graphic prints. The collection is comprised of the “Bang Bang” flight jacket, tactical windbreaker, utility cap, Mobile Legends: Bang Bang logo hoodie, “Diggie” transforming plushie toy and neck pillow, “Hanabi” graphic T-shirt, “Ling” graphic T-shirt, “Gusion” graphic T-shirt, and the Mobile Legends: Bang Bang reversible bucket hat. The collection was recently released on the SNK ATK Lazada store for Philippine orders and the website https://snkatk.co for international orders. All apparel are designed and handcrafted in the Philippines, with unique artwork and designs used on the outerwear and T-shirts. The “Diggie” plushie also marks SNK ATK’s first foray into toys and accessories. For more news, follow SNK ATK on https://www.facebook.com/snkatk.co and https://www.instagram.com/snk.atk/ or visit the website at https://snkatk.co.

New bronzer from RMS Beauty

FOR a true-to-life sun-kissed finish, check out the award-winning Buriti bronzer from RMS Beauty. Founded by beauty expert and celebrity makeup artist Rose-Marie Swift, the company boasts of a catalogue of natural makeup and organic skin care products that contain high quality ingredients in their purest and most natural state. The Buriti Bronzer’s key ingredients are wild-crafted buriti oil, shea butter, and organic cocoa that, when blended together, delivers a unique sheer and subtle effect, with nourishing and hydrating properties. It works with a range of skin tones and doubles as a luminizer for darker skin tones. Apply sparingly with fingers over the face and cheekbones, and just in the places needed for a real sun-kissed look. It can also be applied on the eyes and lips for a translucent sensual summer glow. RMS Beauty’s Buriti Bronzer is now available in the Philippines exclusively through the Adora department store.

Keds’ new collection serves major ’90s nostalgia

KEDS taps into the carefree spirit of the ’80s and ’90s with a collection of modern retro kicks. The Demi TRX Leather (P3,995) is Keds’ take on the modern-retro sneaker, with chunky, lugged rubber outsoles. It comes in white and black colorways and feature a hidden wedge that adds lift. For something that leans into the “athleisure” trend, the Demi Mid TRX Leather (P4,495) takes its cues from basketball shoes from the ’80s. Keds takes this silhouette to present and elevates it with chic leather uppers and shiny hiker-inspired hardware. They’re equipped with a comfy Softerra footbed and lined with breathable twill lining for all-day wear. The Keds Chunky Sneakers Collection available in all concept stores nationwide and at www.keds.com.ph.

Seiko launches 2nd Philippine limited Edition Prospex Watch

INSPIRED by the country’s bright tropical rays, Seiko introduces its second Philippine Limited edition Prospex watch featuring 4R36 automatic movement with manual winding capacity and water resistance up to 200 meters. Built with approximately 41 hours of power reserve and LumiBrite on hands and indexes, this piece promises versatility and long-lasting use ideal for all kinds of adventures. The Philippine Sunrise — codenamed as SRPH38K1 — boasts of a sleek look provided by the watch’s silicone band material for guaranteed convenience, comfort, and sharpness. It features a warm yellow exterior upon the face of the watch, protected by a sapphire crystal with anti-reflective coating on the inner surface. It also boasts 24 jewels, a three-fold clasp with a secure lock, and a thickness of 13.2mm. The 2nd Philippine limited edition Prospex watch has 1,000 pieces only and is available online at the official Seiko Philippines E-Boutique. For more information, visit https://www.seikowatches.com/.

Tatler reinvents itself

TATLER ASIA (Tatler), a luxury brand with a legacy business in media, is reinventing itself for today’s values-driven consumer. Recognizing that people’s needs and behaviors are changing globally, Tatler Asia, which is traditionally known for being a luxury lifestyle media and publisher of the iconic Tatler magazines, initiated a study surveying luxury consumers, spanning Gen Z, millennials, boomers as well as high income earners to understand what people want and require from the media they consume. In response, Tatler is evolving to place greater focus on topics with purpose, such as female empowerment, sustainability, equality, LGBTQ, philanthropy and entrepreneurship. The brand will continue engaging with influential consumers, business leaders, creatives and personalities who are shaping Asia’s future, but will increase its younger audience base to reach Asia’s mass affluent, appealing to individuals from a greater cross-section of communities, industries and walks of life.  The survey, gathering insights from over 2,000 people in Hong Kong, China, Taiwan, Singapore, Malaysia, and the Philippines explored people’s feelings towards luxury, wellness, sustainability and Asian culture, and asked respondents what they wanted from Tatler and the impact the brand has on their purchasing decisions. The results confirmed Tatler’s approach to expanding its content pillars and audience touchpoints, as well as reaching a younger, affluent audience who are primarily digitally connected, salaried professionals or entrepreneurs. This new audience base seeks premium or exclusive products that offer value and functionality, as well as experiences to discover, network and connect with individuals and brands. The values of high-net-worth individuals (HNWI), as well as people’s perception of luxury in general, have changed. Luxury has evolved from its association with high priced consumer goods that convey status, to having more emphasis on wellbeing, value and meaning, and demonstrating personality. Additionally, and supported by over 80% of respondents, luxury consumers value sustainability and ESG, and seek to purchase from brands that commit to worthy causes. Many of these changes have been an outcome of COVID-19, with 70% of respondents stating that their luxury purchase preferences have changed since the onset of the pandemic. Based on these insights, Tatler will ensure ESG is a theme consistently explored in its content whilst aligning with real views on what luxury is. Over 75% of respondents said that they support and promote Asian culture and Asian-led businesses, and over 60% said they desire more content on entrepreneurship and social issues such as equality, diversity and inclusion. In the last five years, Tatler has expanded its coverage exploring entrepreneurship, through initiatives such as Generation T (Gen.T), a community media platform for young leaders shaping Asia’s future. Focusing on Asia’s female leaders, Front & Female, a platform for women supporting women who want to make a deep social impact, was launched in 2020. The brand is also growing audience touchpoints, adding new channels across multiple platforms with alternative business models that go beyond print and digital media. New initiatives are being rolled out in markets, with some piloted and launched, and others set to be introduced by the end of 2022. One of the most successful spin-offs, Tatler Dining, leads the way, particularly relevant since dining consistently ranks among the top hobbies across demographics, incomes and regions. Its initiatives include Tatler Dining Kitchen, a culinary hub for food lovers to experience unique off-menu dining and exclusive collaborations never before seen in the market, whilst The Tatler Bar is a curated online and offline platform designed for the drink connoisseur. Within the festival space, OffMenu is an event that mixes local and international F&B trailblazers, chefs and mixologists, with eclectic entertainment. Outside of F&B, the brand is introducing wellness events in collaboration with renowned fitness brands and experts through the sub-brand Tatler Roots. Tatler also recently introduced branded VIP venues such as Tatler House, where intimate luxury gatherings, dinners, roundtables, product activations and more, take place. Tatler House is located in Hong Kong, Beijing, Singapore and Malaysia, with more to open across the region in the coming year. Tatler also recently launched Tatler Escapes in Hong Kong, a luxuriously appointed catamaran that can play host to events and experiences at sea. Diversifying into e-commerce, Tatler The brand is also exploring rewards programs following the launch of UnitedWeDine last year to support the F&B industry in Hong Kong. Tatler Asia launched its new website — a global platform that provides each location personalized content. The multilingual website, designed to increase engagement with millennials and Gen Z audiences, features interactive and dynamic elements. Visit www.tatlerasia.com to check out a New Tatler.

Online magazine focuses on beauty

BEAUTY standards in the Philippines are quickly shifting, as more women turn their backs on stereotypes. Today’s Filipinas are actively redefining beauty standards to be more inclusive. This shift in thinking has led more women to Beautyhub.PH, an online magazine that promotes equal representation of all kinds of beauty and encourages women to be their own kind of beautiful. Beautyhub.PH is packed with practical tips not only on beauty but wellness and self-care, with women sharing stories about body image, overcoming self-doubt, and living life to the fullest. It is full of how-to guides, listicles, and simple Q&As on inclusive beauty — acknowledging real everyday concerns of women and offering simple solutions and product suggestions. The articles don’t impose a single standard or look but cover a lot of ground. The section on Skin has suggestions on skin care routines, as well as informative tips on usual concerns such as underarm care, acne-prone skin, and wrinkles. Haircare concerns are also extensively covered, ranging from haircuts, hairstyles, and the best products for different hair concerns. The Lifestyle Section touches on fitness, body care, and natural beauty. For those who need a dose of inspiration from celebrities, there are empowering articles from Pia Wurtzbach, Heart Evangelista, and Kathryn Bernardo. Because beauty is as much a concern of men as it is of women, Beautyhub.PH also has MANifesto.PH, a section that provides accessible grooming advice for men, with helpful articles on skincare, haircare, and lifestyle, and concerns such as self-motivation, keeping a positive routine, and the benefits of meditation, to name a few.

Investors buy Converge after top bond rating, international network expansion

INVESTORS snatched up fiber internet company provider Converge ICT Solutions, Inc. shares last week following a high credit rating given for its bond offering and increased international network facility.

Data from the Philippine Stock Exchange (PSE) showed Converge ranked 11th in value turnover with a total of P485.16-million worth of 15.14 million shares traded from Dec. 27 to 31.

Converge closed at P31.90 apiece on Friday, down 3.3% from P33.00-per-share close on Dec. 24. Shares in the company have more than doubled since the start of 2021.

“Converge was among the active stocks this week after being given the highest credit rating for its bond offering and further increasing its international network capacity by 1.3 TBPS (terabits per second),” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Friday.

“Investors reacted positively with this disclosure through accumulation of the shares while transacted volume increased by more than 40%,” he added.

The company, which aims to cover 55% of Philippine households by 2023, said in a statement that it increased its international network capacity by 1.3 TBPS through its C2C (city-to-city) cable system.

The cable system connects the Philippines to Hong Kong, Taiwan, Singapore, Japan, Korea, and China. Converge said it is part of the EAC-C2C (East Asia Crossing-city-to-city) network, which spans 17,000 kilometers.

“It is our vision to make the Philippines a digital hub in Asia and securing much-needed international bandwidth is key to realizing this vision,” said Dennis Anthony H. Uy, founder and chief executive officer of Converge.

In a separate report, Philippine Ratings Services Corp. (PhilRatings) has granted Converge with the highest credit rating of PRS Aaa with a stable outlook for its planned maiden bond issuance worth P5 billion.

On its website, PhilRatings says that a company rated PRS Aaa has a “very strong” capacity to meet its financial commitments “relative to that of other Philippine corporates.”

Mr. Pangan expects Converge’s revenue to continue growing by double digits this year.

Converge’s revenue rose 76.4% to P18.83 billion during the January to September period due to significant growth from its residential segment.

Its net income meanwhile more than doubled to P5.20 billion in the nine months ending in September from P2.19 billion in 2020.

For this week, Mr. Pangan pegged the stock’s support at P30.90 and its immediate resistance at P33.00.

“As valuation runs high at price to earnings ratio of more than 30, we may expect the price to consolidate with a possibility of further downward correction [this] week with the negative sentiment prevailing in the market due to sudden increase in infection rates,” added Mr. Pangan. — L.O. Pilar

The fight to slow the global crash in fish production has a big problem

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

BIENDI MAGANGA-MOUSSAVOU had a problem.

As Gabon’s minister of fisheries, agriculture and food security, he helps oversee the African country’s marine protected areas, some of the most extensive in Africa. Covering 27% of Gabon’s Exclusive Economic Zone, these waters are supervised using monitoring technology that tracks larger vessels, which are required to report their catch. But many of Gabon’s fishers run smaller operations that don’t have such systems, or even automated identification.

“Thousands of boats were going out and we didn’t know where they were going or for how long,” Magana-Moussavou said in an interview. And since whatever they caught and where they caught it wasn’t registered, scientists couldn’t tell whether fishing restrictions were being respected or whether fish stocks in protected areas were increasing — or declining.

Gabon’s problem is the world’s problem. More than 30 million fishers worldwide — around 90% of the total, according to the United Nations Food and Agriculture Organization (FAO) — are considered small-scale. Together, they bring in about half of the world’s catch. With human populations rising and developing nations getting wealthier, the demand for seafood is escalating. An accurate assessment of the shrinking global fish supply is thus crucial to planetary food security. Right now though, that’s impossible.

“Millions of tons of fish from the small-scale fisheries are ‘hidden’ in the sense of being invisible and unreported,” the FAO warned in its 2020 report on the world’s fisheries.

But in an effort to plug this data hole, some low-fi technology is being leveraged. Gabon partnered with CLS Group, a subsidiary of France’s National Center for Space Studies, which uses hundreds of satellites to provide monitoring and surveillance services for governments and scientists. Together, they developed a solar-powered device the size of a loaf of bread called NEMO.

The device relays its location via cell tower or satellite, enabling small fishers to register their catch. If widely adopted, such technology could go a long way toward filling in that critical food picture beneath the waves. In doing so, it might reveal how much time humans have left to adopt more sustainable fishing practices.

CLS said it has close to 3,000 NEMO devices installed on vessels operating in the waters of 40 countries, including France, Greece, Peru, Ecuador, Ivory Coast, Seychelles, Bangladesh and Australia. Gabon started using NEMO in July.

The program aims to eventually deploy as many as 2 million devices worldwide, the company said. While each costs around $200, international NGOs including New York’s Wildlife Conservation Society and local groups are stepping up to help pay for the devices, according to CLS.

“Any data at all would help address a major gap in our collective knowledge,” said Program Manager Michel Denjean. Even a sampling of data from small fishers, or just knowing where a boat spends its time and for how long, can provide valuable direction for conservation, he said.

But why would a subsistence fisher take part? Already barred from working in certain waters and under pressure from shifting migration patterns and falling oxygen levels triggered by warming seas, it’s reasonable to assume many wouldn’t be interested.

Safety, apparently, is the lure. NEMO can also activate a distress signal. When small boats lose sight of shore — either because they need to go farther out to find fish or just because the weather changes—they can get lost. Motors can fail, and not everyone carries a sail for emergencies. And if they’re more than a couple of miles offshore, mobile phones won’t pick up a signal.

“It’s not just control,” Maganga-Moussavou said. “It’s a way to protect the fishermen themselves.”

Fish consumption has been rising at almost double the rate of population growth for more than half a century, outpacing even animal proteins. Humans eat more than twice as much seafood as they did in 1960, with most of the increase occurring in the developing world. According to the FAO, less than two-thirds of fish stocks are now within biologically sustainable levels — down from 90% in 1974.

“One of the major challenges that fisheries face when assessing their ecological performance is the lack of data on, for example, stock assessment, species, and areas fished,” said Amanda Lejobowicz, head of fisheries standard, accessibility, at the Marine Stewardship Council. “That is particularly true for small-scale fishers and those in developing economies.”

Eric Terrill, director of the Coastal Observing Research and Development Center at the Scripps Institution of Oceanography, agreed. “Low-cost transponding devices provide a great opportunity to track patterns of fishing pressure from a cross-section of harvesters not normally managed,” he said.

The idea for NEMO had its genesis in Senegal, where a local fishery told the company that rising ocean temperatures and competition from heavy Chinese trawlers were pushing small fishers farther out to sea. “We started to develop a satellite connection for tracking but also for assistance request,” said Hervé Galabert, CLS director of sustainable fisheries management. “They wanted something robust, solid, simple, and affordable.”

NEMO transmits to a constellation of seven nanosatellites already used for animal tracking and climate research, the company said. Starting in 2023, it will switch over to a new group of 25 satellites developed by CLS subsidiary Kinéis, with space startup RocketLab contracted for the launch.

Even with the promise of additional safety, buy-in from small fishers remains a problem. With fishers licensed to operate in Gabon’s protected area for only a few hours per day, Maganga-Moussavou concedes NEMO makes it easier to catch those who stay too long. “We can monitor their activity and see what they do and fine them if they do wrong,” he said. But he added that fishers can cite NEMO data to prove their innocence if accused of illegal fishing.

“Safety of fishers is a big concern at sea and on the larger lakes in Africa,” said Sandy Davies, technical expert with the Stop Illegal Fishing Secretariat, a southern Africa NGO. “NEMO may well garner interest as storms intensify and fishers are pushed further from shore.”

The market might provide further incentive. Fish with an eco-label like that of the MSC fetches more money. Though many small-scale fishers are connected to only local markets, interest in sustainably-caught fish is growing everywhere, particularly where there’s a strong tourist presence, such as Greece, the Maldives and Ecuador.

And while using such devices is still voluntary, it may soon become compulsory. New legislation in Gabon will soon require installation of a NEMO to procure a license for commercial fishing. — Bloomberg

Autohub Institute of Technology turns 7

From left are Autohub Institute of Technology (AIT) Head Trainer Mark Gumapon, Director Jesus R. Boces, Jr., Admin Assistant/Registrar Kristelle Nabong, and Technical Trainer Israel Santos.

AUTOHUB GROUP of Companies reinvigorates its technical training institution called Autohub Institute of Technology (AIT) as the latter marks seven years of operation. In a release, AIT said that it is “more than just about being a learning hub but significantly honing the best technical experts in the automotive industry that will make them globally competitive and rev up their careers.”

AIT said that it aspires to be the premier regional and global automotive technician training center in the country as it provides the “highest standards of competence in automotive technician training with an integral and holistic approach.”

The institute is said to deliver “world-class quality training,” which also coincidentally reflects Autohub Group President Willy Q. Tee Ten’s initials, to bring out the potentials of trainees in terms of knowledge and skill. AIT also interprets Autohub Group’s corporate social responsibility as it promotes positive work values and virtues for trainees. AIT promotes the core values of competence, character, and concern for others. And more than a typical classroom setup, AIT assures that the trainees get more adept internship through hands-on mentorship by competent and seasoned professional trainers.

At AIT, the trainees are schooled according to the Technical Education and Skills Development Authority (TESDA) Automotive Servicing Training Program and Autohub’s needs and work specifications. Theoretical and practical training systems come together at the training center and the company. The student-trainee reports to the school/training center while at the same time working and training in the company. AIT said that this approach provides trainees with well-coordinated learning experiences and opportunities. This collaboration between the school and the company ensures that the trainees are assessment-ready for the TESDA National Level Certification and fully equipped with employable skills, work knowledge, and right attitude at the end of the training.

AIT’s hallmark program are a one-year TESDA Automotive Servicing NCI- and NCII-registered courses, wherein trainees are exposed to both classroom- and industry-based training thanks to Autohub’s automotive brands which include Rolls-Royce, Lotus, Mini, Ford, Mitsubishi, Suzuki, Geely, Fuso, MG, Nissan, Hyundai, Piaggio Ape, Vespa, Shelby, and Triumph.

Autohub Institute of Technology is located at Blk. 15, 6/F, Ford Global Building, 32nd St. cor. Rizal Drive, Crescent Park West, Bonifacio Global City, Taguig City, Metro Manila, 1634 Philippines. For inquiries, visit AIT’s Facebook page — Autohub Institute of Technology or call 0917-557-2100.

Market to remain volatile due to surge in cases

BW FILE PHOTO

PHILIPPINE stocks are seen to be volatile this year amid concerns over the coronavirus disease 2019 (COVID-19) pandemic and the upcoming national elections.

The Philippine Stock Exchange index (PSEi) plunged 211.93 points or 2.88% to close at 7,122.63 last week, while the broader all shares index fell by 65.26 points or 1.68% to 3,818.12.

Week on week, the bellwether PSEi dropped 59.23 points from its 7,181.86 close on Dec. 24.

The local bourse declined by 17.08 points or 0.2% from its 7,139.71 close at the end of 2020.

“From the COVID-19 hard lockdown low of 4,039.15 posted on March 19, 2020, the PSEi still posted total gains of 76.3% by the end of 2021,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in an e-mail sent over the weekend.

For this year, the market’s movement will continue to be driven by COVID-19 developments and the May elections, which is expected to boost spending in the first half, online brokerage 2TradeAsia.com said in an e-mail.

The recent spikes in cases in South Asian countries could affect markets in the first quarter, it said.

“This should not make 2022 any less forgiving of a trading year than 2021, only without the base effect advantage, but with better start-of-the-year fundamentals,” 2TradeAsia.com said.

Meanwhile, despite the government’s failure to reach its target to inoculate 54 million Filipinos at end-2021, 50 million individuals were still fully vaccinated, which could help calm down the market, the brokerage added.

Meanwhile, Regina Capital Development Head of Sales Luis A. Limlingan said trading in the coming weeks will be difficult to forecast amid tighter mobility restrictions due to the surge in COVID-19 cases and rising infections of the Omicron variant.

“My best guess is that activity will start soft as investors will be monitoring the daily cases and assess which businesses will be most affected by the Alert Level 3 status,” Mr. Limlingan said.

The national task force put National Capital Region (NCR) under Alert Level 3 from Jan. 3-15 amid a fresh surge in cases.

OCTA Research Group, a private research firm, earlier said NCR is at high risk for COVID-19 transmission as the positivity rate in the capital is now at 28.03%.

“Follow through in sports is that extra swing needed to complete a motion, and just as the market follows the law of physics, it needs a follow-through event. Strong headwinds in the horizon are likely enough to help the index generate escape velocity to 8,000,” 2TradeAsia.com said.

The brokerage placed the PSEi’s immediate support at 7,100, while resistance is at 7,300-7,400.

Meanwhile, RCBC’s Mr. Ricafort put the benchmark index’s immediate major support at 7,060 and immediate resistance at the 7,200-7,260 levels. — M.C. Lucenio

Peso to weaken on Fed, new variants

THE PESO is expected to retreat further versus the greenback in 2022 as investors opt for safe havens amid the more hawkish stance of the US Federal Reserve, and with new variants of the coronavirus disease 2019 (COVID-19) clouding recovery prospects.

The local unit closed at P50.999 per dollar on Dec. 31, the final trading day for 2021, shedding P2.976 or 6.2% from its P48.023 finish on Dec. 29, 2020.

A trader in an e-mail said the peso closed weaker last year as the Fed became more hawkish amid lingering risks caused by elevated US inflation.

“We see the dollar to continue its strength as the US Fed pushes through with its hawkish stance and start raising rates sooner rather than later,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

In November, US Fed Chairman Jerome H. Powell said inflation could no longer be accurately described as transitory. Fed officials have also agreed to quicken the pace of their taper timetable for purchase of assets and have said they expect up to three rate hikes this year.

Mr. Asuncion said there would also likely be a flight towards safe-haven currencies as an initial reaction to COVID-19 variants and the infection surge, which could cause the peso to weaken.

Data from the Centers for Disease and Control Prevention showed that about 58.6% of COVID-19 patients in the US are sick with the more transmissible Omicron variant, Reuters reported.

Other countries in Europe and Asia as well as Australia have also seen an uptick of cases in the previous weeks.

At home, Metro Manila will be placed under the stricter Alert Level 3 from Jan. 3 to 15 amid the rising infections. On New Year’s Day, active cases rose 3,617 while the infection rate hit 14.8%, which is beyond the 5% threshold set by the World Health Organization.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the market will also be monitoring the country’s vaccination progress.

More than 49.7 million have been fully vaccinated in the country as of Dec. 31, based on data from the Department of Health. This is below the 54-million target of the government by the end of 2021.

The fully vaccinated make up 49.9% of the country’s population, according to data from the Johns Hopkins University.

Developments related to disruptions and improvements on the global supply chain could also affect the peso’s movement this year, Mr. Ricafort added.

Meanwhile, Mitsubishi UFJ Group Global Research analyst Sophia Ng said a larger trade deficit caused by likely higher oil import bill could also cause the peso to depreciate.

For this year, Mr. Asuncion gave a forecast range of P51 to P53, while Mr. Ricafort expects the local unit to trade within P51 to P52 versus the greenback. Ms. Ng’s outlook for the peso is an end-2022 close of P51.50 per dollar. — Luz Wendy T. Noble with Reuters

Animam, Henson to beef up Gilas women’s team

JACK ANIMAM — FIBA

THE Gilas Pilipinas women’s team looks forward to the return of seasoned anchor Jack Animam and the debut of Filipina-American ace Mai-Loni Henson for a busy 2022 campaign none bigger than the 31st Southeast Asian Games (SEA) in Hanoi.

Coach Pat Aquino said he expects the availability of the two prized cagers that would only beef up the national team in time for a second straight SEA Games gold medal bid in May.

The 6-foot-5 Ms. Animam just came off an international pro debut in Serbia, where she impressed with a double-double average of 20.0 points and 14.3 rebounds.

Ms. Henson, the 6-foot-1 prospect from San Diego, California for her part has acquired dual citizenship to become Gilas-ready after a stint for University of Washington in the US NCAA and Al Aplemont in the France pro league.

“Yes, definitely (they will play). We’ll need the experience of Mses. Animam and Henson for our tournaments this year,” Mr. Aquino told The STAR following a fruitful return to action in the 2021 International Basketball Federation (FIBA)  Women’s Asia Cup after a two-year hiatus due to the pandemic.

Parading a hybrid squad made up of key veterans and a slew of young guns, the Philippines bested India in the relegation match to earn the right of staying in the elite Asia Cup’s Division A led by Japan, China and Australia.

And with Mses. Animam and Henson on board to reinforce Afril Bernardino, Camille Clarin, Ella Fajardo and skipper Janine Pontejos, the goal in the regional biennial meet is within closer reach for the Nationals.

“All eyes will be on the team given our performance in 2019 so we hope to defend the crown in the SEA Games,” he added after ruling the traditional 5-on-5 and inaugural 3×3 events in Manila.

Aside from the SEA Games, Gilas is also hoping to strut its stuff in the FIBA Women’s World Cup and the Asian Games. — John Bryan Ulanday

How PSEi member stocks performed — December 31, 2021

Here’s a quick glance at how PSEi stocks fared on Friday, December 31, 2021.


Analysts’ December 2021 inflation rate estimates

HEADLINE INFLATION probably slowed in December as fuel retailers reduced prices, although holiday demand and the impact of Typhoon Odette may have caused a faster rise in food prices, according to analysts. Read the full story.

Analysts’ December 2021 inflation rate estimates

Miners see no clarity on industry policy from 2022 candidates

A port is pictured as trucks and a backhoe load rocks and soil containing nickel-ore minerals into a barge in the mining town of Sta Cruz, Zambales, Feb. 8, 2017. — REUTERS

By Luisa Maria Jacinta C. Jocson

THE CHAMBER of Mines of the Philippines (CoMP) said it is not clear on whether mining policy implemented by the current government will enjoy any continuity in the succeeding administration in the absence of clear intentions expressed by the 2022 Presidential candidates.

“We have yet to hear a clear minerals development policy or strategy from any of the Presidential candidates. All candidates should develop a long-term minerals development policy as many future technologies (renewable energy, batteries, EVs, computers, etc.) all depend on scarce minerals, and securing these will be critical,” CoMP Executive Director Ronald S. Recidoro said in an e-mail interview.

“The mining industry has always looked at changes in administration with cautious optimism. This is particularly true of the 2022 national elections, considering the policy gains we have secured in the last two years,” he added. “We would like to ensure that these gains are sustained under the next administration, and that its fruits — increased socio-economic contribution from mining — are felt by the Filipino people.”

On Dec. 23, the four-year ban on open-pit mining was lifted by Department of Environment and Natural Resources (DENR). Its Department Administrative Order (DAO) 2021-40 repeals the 2017 order issued by the late Environment Secretary Regina L. Lopez.

DAO 2017-10 banned open-pit mining, noting that “most of the mining disasters in the country were to due tailings spills associated with open-pit mining.”

Mr. Recidoro said the current government is taking the steps in the right direction.

“We think the (current) administration was right in making these policy corrections. With regulatory safeguards now firmly in place, and an improved fiscal regime being implemented, the time was right to allow new mines to come onstream. We can only hope that the new administration will see it fit to continue and build upon these reforms,” he said.

In April, the government lifted the nine-year moratorium on granting new mining permits.

“The mining industry under President Rodrigo R. Duterte’s administration was a mixed bag, but which has turned in our favor in the last 12 months. Early in his administration, Mr. Duterte voiced his concern over irresponsible mining practices he had seen while mayor of Davao City. He then appointed Secretary Regina L. Lopez to introduce radical change into how mines were regulated and operated. As a result, suspensions and closure orders were issued, and a ban placed on open- pit mining,” Mr. Recidoro said.

At the time, Mr. Recidoro said the excise tax on minerals doubled ahead of the moratorium on new mining permits.  He said the industry “suffered tremendously during that time, but we took it as an opportunity to re-examine the industry, effect key environmental, social, and governance (ESG) reforms, and upgrade our capacities and capabilities.”

“Like the other mineral-rich countries, we should position the country as a global player and make best economic use of our mineral resources. Given the opportunity, we would be happy to provide the candidates with a briefing on the matter and emphasize the importance of a strong and responsible minerals industry to the country,” he added.

The Foundation for Economic Freedom (FEF) said in a statement that the lifting of the ban would boost an economy still reeling from the pandemic by generating government revenue at the national and community level and increasing export revenue to help finance critical capital imports.

“Lifting the ban on open-pit mining will accelerate the growth of the mining industry, which will generate good paying jobs in the countryside and help dent rural unemployment and poverty,” the FEF read.

“Any negative effects on the environment can be mitigated with rehabilitation measures and other environmental safeguards that mining companies must adhere to. Open-pit mining is used worldwide and in countries with strict environmental laws, such as the US, Australia, and Canada,” the FEF added.

Meanwhile, environmental groups and political parties expressed their opposition to the resumption of open-pit mining, calling it a reversal of Mr. Duterte’s election promise.

Isa na naman itong pangakong napako ng administrasyong Duterte. Sabi niya noong eleksyon na ipapasara ang mga dambuhalang mina na nakasisira sa kalikasan, ngunit ngayon  binibigyang-daan ang open-pit mining, ang panghuhuthot sa yamang mineral ng bansa, ang matinding pagwasak ng mga kabundukan,” Bayan Muna Party-list said in a statement.

(This is another promise of the Duterte Administration that was not fulfilled. During the campaign, he said he will have the big mining companies closed. But now, he is giving way to open-pit mining, which damages the environment, robs us of our mineral wealth, and destroys our mountains.)

Mukhang nais ng administrasyong Duterte na mangolekta ng malaki mula sa kompanya ng mina bago mag-eleksyon kung kaya’t ngayon tinanggal itong ban sa open-pit mining,” it added.

“It is crystal clear that if the Duterte-Marcos alliance wins the elections in 2022, we can expect more pro-mining policies from government. We must call on the opposition to campaign for the reinstatement of the open-pit mine ban and the moratorium on new mining projects. We call on all pro-environment Filipinos to unite and defeat the pro-mining Duterte-Marcos alliance,” Leon A. Dulce, national coordinator of Kalikasan People’s Network for the Environment said in an e-mail, referring to the ticket of Presidential candidate Ferdinand R. Marcos, Jr. and his running mate, Davao Mayor Sara Z. Duterte-Carpio.

Anakpawis Party-list and the fisherfolk group Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas also warned of major environmental consequences of the return of open-pit mining in a joint statement.

“The resumption of open-pit mining is (brining) our environment towards a major disaster in the making. The country’s productive agricultural and fisheries resources will be sacrificed for this extreme greed for profit of mining corporations at the cost of the people’s socio-economic rights, national patrimony, and sound and sustainable environment. Moreover, this order is a betrayal of the people who continue to defend their livelihood and rights to a healthy ecology,” the statement read.

“As a result of the nickel tailings, traditional fish species that used to thrive in the municipal waters have become extinct. Moreover, the tailings have destroyed several reefs that used to be the breeding grounds of fish. Until now, those big mining companies responsible for the degradation of fishing waters have yet to compensate the affected fishing communities,” it added.

Dominguez proposes shorter school holidays

PHILIPPINE STAR/ MICHAEL VARCAS

FINANCE Secretary Carlos G. Dominguez III said reduced school holidays could help students make up for the shortcomings of pandemic-era schooling, such as the absence of face-to-face lessons.

At a briefing in December, he said the drastic reduction in in-person school hours will have long-term effects because it reduces the earnings potential of future graduates.

“That is economic scarring, I think, that will potentially hit us in the future,” he said.

“I’m not an education expert, so I really don’t know, but we do have to catch up for those lost two years.”

Schools stopped running face-to-face classes in 2020 to deal with lockdowns designed to curb the spread of the coronavirus disease 2019 (COVID-19).

Socioeconomic Planning Secretary Karl Kendrick T. Chua has said that the unavailability of face-to-face schooling could cost the country P11 trillion in lost wages over the next four decades.

The Philippines was the last country to return to in-person classes, which are being piloted by a handful of schools. The Department of Education plans an expanded reopening this year.

Moody’s Investors Service in July 2021 said that the Philippines could face deep economic scarring over the long-lasting effects of the pandemic.

This scarring, it said, may manifest in the labor market and poverty levels.

In response, Mr. Dominguez said the economy is headed to a “strong and early recovery.”

“Improvements in our macroeconomic indicators were driven by government policies that further reopened the economy safely, including more targeted and granular lockdowns, accelerated vaccination drives and more mobility for vaccinated individuals.

The government recently raised its gross domestic product projection for 2021 to 5.5% after the economy grew 7.1% third quarter last year after lockdowns declared to curb a Delta-driven surge in cases. 

Economic managers retained the 7-9% growth target for 2022.

The government announced that Metro Manila will return on Monday to Alert Level 3, a stricter form of lockdown, to curb a recent spike in COVID-19 cases.

The economy declined by a revised 9.6% in 2020. — Jenina P. Ibañez