Asian Games rescheduled for next year in Hangzhou, China

July 21, 2022 | 12:02 am

A PIECE of good news greeted the Filipino athletes after learning that the Asian Games have been rescheduled from Sept. 23 to Oct. 8 in Hangzhou, China next year, or more than a year of its original date.

The Olympic Council of Asia on Tuesday confirmed the development after months of discussions with organizing Chinese Olympic Committee.

The quadrennial event was originally set Sept. 10-25 but was moved due to the coronavirus disease 2019 (COVID-19) pandemic.

“Yes it will push through next year and we are all excited because it was postponed,” Philippine Olympic Committee president Abraham Tolentino yesterday told The STAR.

The Tagaytay City Mayor said the games will still have 40 events and more than 480 gold medals at stake.

“No changes in the events, only there will be new athletes,” said Mr. Tolentino.

The country is confident it could improve on its four-gold, two-silver and 15-bronze haul for a 19^th place finish in the last edition of the Asian Games in Jakarta, Indonesia four years ago.

The optimism comes from the country’s slew of world-class athletes like Tokyo Olympics gold medalist Hidilyn Diaz and a group of young promising lifters, world champion gymnast Caloy Yulo, the boxers, pole-vaulter EJ Obiena, and Asian Games skateboarding gold winner Margie Didal. — Joey Villar

Yields on term deposits rise after BSP rate hike

July 21, 2022 | 12:02 am

YIELDS on the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) increased on Wednesday amid slightly weaker demand and after the central bank unexpectedly hiked benchmark interest rates last week.

Total bids for the central bank’s term deposits reached P321.566 billion on Wednesday, short of the P330-billion offer and also lower than the P385.602 billion in tenders recorded last week.

Broken down, the seven-day papers fetched bids amounting to P151.948 billion, lower than the P160 billion auctioned off by the BSP. It was also less than the P204.106 billion in tenders logged the previous Wednesday.

Banks asked for yields ranging from 2.75% to 3.69%, climbing from the 2.64% to 2.71% band seen a week ago. This caused the average rate of the one-week paper to rise by 56.21 basis points (bps) to 3.2459% from 2.6838% last week.

Meanwhile, demand for the 14-day term deposits amounted to P169.618 billion, below the P170-billion offering as well as the P181.493 billion in tenders recorded a week ago.

Accepted rates for the papers were from 2.775% to 3.72%, higher and wider than the 2.625% to 2.75% margin seen on July 13. With this, the average rate of the two-week paper increased by 61.82 bps to 3.3417% from 2.7235% in the prior auction.

The central bank has not auctioned 28-day term deposits for more than a year to give way to its weekly offering of securities with the same tenor.

The term deposits and the 28-day bills are used by the BSP to mop up excess liquidity in the financial system and to better guide market rates.

“The results of the auction show that there has been a partial pass-through of the policy rate to market rates amid ample overall liquidity in the financial system,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement. “The weighted average interest rates of both tenors increased, reflecting the impact of the 75-bp hike in the policy interest rate on 14 July 2022.”

“Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” Mr. Dakila said.

The BSP last week raised benchmark interest rates by an all-time high 75 bps in an off-cycle move and left the door open for further tightening amid growing risks to inflation.

BSP Governor Felipe M. Medalla said the Monetary Board’s “significant” hike was due to signs of “sustained and broadening price pressures” as well as spillover effects from aggressive tightening in other countries, such as the United States, amid global inflation concerns.

The hike was done outside of their scheduled policy meetings and was the first off-cycle increase since April 16, 2020. Following Thursday’s move, the BSP has now raised rates by a total of 125 bps this year and the key rate is now at 3.25%, matching the March 2020 level.

The BSP has become more aggressive as headline inflation reached 6.1% in June, the fastest in nearly four years. This brought the first-half average to 4.4%, above the central bank’s 2-4% goal but still lower than its 5% forecast for the year.

TDF yields were also higher amid hawkish signals from the US Federal Reserve, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Fed is widely expected to raise interest rates by at least 75 bps at its July 26-27 meeting to combat inflation, which quickened to a 40-year high of 9.1% in June. — Keisha B. Ta-asan

Reclaiming the throne

July 21, 2022 | 12:02 am

IMG_0051.HEIC — THREE wines during the virtual tasting event. — PHOTO BY SHERWIN A. LAO

ROBERT Mondavi Napa Valley Cabernet Sauvignon has been my go-to California wine ever since I started my wine career in the mid-1990s. The 1994 vintage was the very first Robert Mondavi Napa wine I had sometime in 1998, and several vintages later, this wine and this brand just simply resonate with me.

Robert Mondavi, the man, the legend, was truly the best ambassador of Californian wines to the world, and I would argue that he may have been the most influential and impactful individual by far who put Napa Valley — and Californian wines in general — on the world wine map.

I was, however, not a fan of using the Robert Mondavi name in other wine ranges, including Woodbridge, Coastal, and the Private Selection — all commercially successful, competing in the mid to lower priced broader California AVA (American Viticultural Area) mass-based segment. The Coastal range was eventually discontinued in the early 2000s and replaced by the Robert Mondavi Twin Oaks range.

I do understand that the Mondavi Napa Valley wines are on the pricier side (like every Napa AVA) and could not be an everyday indulgence, but the Robert Mondavi brand seemed to be best associated with only the premium Napa wine level and above. I guess I just had the Robert Mondavi brand on a pedestal so that any wine, like Woodbridge, that bears this legendary name but is of less than Napa quality, felt like a stain on the Mondavi brand’s luster.

This was the same way I felt with Rawson’s Retreat being under the Penfolds umbrella brand, until recently when Treasury Wine Estates, the company that owns Penfolds, rightfully took the Penfolds name out, and named this range simply “Rawson’s Retreat” sans the “Penfolds.”

NEW ROBERT MONDAVI CAMPAIGN
Recently, Constellation Brands, the company that owns Robert Mondavi wines, conducted a big regional media event and I was very elated to be at their “Robert Mondavi Winery Reimagined: Soul of Napa campaign” media launch. As the campaign’s title suggested, this one was all about the premium Mondavi wines that start at the Napa Valley AVA level. This was a virtual tasting event, and, ironically, I just wrote my sentiments about virtual wine tasting in my previous month’s column. But in fairness to this specific virtual tasting event, the concerns I raised in my column, while all relevant and valid still, were not in view. The Mondavi event was pulled off quite successfully despite the logistical challenge of sending three outstanding Napa wines to over 10 countries in the Asia-Pacific region and for an audience of at least 40 people.

Constellation Brands, a huge Fortune 500 liquor conglomerate and a New York Stock Exchange publicly listed company (listed as STZ and STZ.B) created quite a stir in the wine industry back in 2004 when they purchased the Robert Mondavi Winery for over $1.3 Billion. At the time of purchase, founder Robert Mondavi was already 91 years old. Robert Mondavi Winery remains the flagship premium wine brand of the Constellation Brands’ growing wine portfolio.

Robert Mondavi, founder of his eponymous winery, passed away in 2008 at the age of almost 95 years old. His legacy had lived on, and this “Robert Mondavi Reimagined: Soul of Napa campaign” is a tribute by Constellation Brands to inspire wine lovers to dream, do, share and celebrate founder Robert Mondavi’s spirit.

LABEL UPGRADE
I received three bottles of Robert Mondavi premium Cabernet Sauvignon wines: the Napa Valley (region), the Estates Oakville (sub-region), and the Reserve To Kalon (vineyard).

The first thing that jumped out from the new Robert Mondavi wines are the stylish labels. As part of the “transformation,” the new look Mondavi Napa Valley wine uses a cream-colored torn-paper label with gold fonts, gold accents, and the familiar winery façade. Quite noticeable too is the prominent signature of Robert Mondavi right in the front, which was not present in previous Mondavi Napa Valley wine labels.

Both the new Oakville and new Reserve labels went through a 180⁰ makeover. Both these new labels are much darker (literally …), sleeker, elegant and more polished than their respective old counterparts, though the similarity between the new Oakville and the new Reserve label is quite close and is mainly differentiated by the color of the sticker paper. The Estates Oakville uses gold font on Parisian-blue paper and the Reserve uses silver font on black paper. Both labels also bear the Robert Mondavi signature and the iconic winery symbol. The new labels befit Robert Mondavi’s unparalleled stature in this region.

These Mondavi bottles were sent to me on time for the virtual tasting and came in a beautifully crafted wine carrier box that not only contained the wines, but also included three stemless wine glasses, winery notes, and a collectible corkscrew. Mark de Vere, at Robert Mondavi Winery’s in-house Master of Wine guided all the participants via Zoom direct from Napa Valley in this virtual wine tasting event.

MY CUSTOMARY TASTING NOTES
(in order of tasting):

• Robert Mondavi Napa Valley Cabernet Sauvignon 2019 — this is the original wine that started it all, and until now it remains one of the most consistent Napa Valley Cabernet Sauvignons made, vintage after vintage. Made from 80% Cabernet Sauvignon and 20% other classic Bordeaux varietals — Merlot, Petit Verdot, Cabernet France and Malbec. “Choco-mint, vanilla, peppercorn spice, voluptuous, silky body, friendly tannins, and berry-laden finish.”

• Robert Mondavi The Estates Oakville Cabernet Sauvignon 2018 — this sub-Napa region of Oakville AVA is another go-to wine for upper-tier Napa wines. Oakville AVA is also where cult wines Screaming Eagle and Harlan Estate produce their ultra-expensive Napa wines. Made from 86% Cabernet Sauvignon with 14% from the four other Bordeaux varietals. “Opulent nose, cassis, black berries, warm pie nose, figs, very juicy on the palate, herbal with bitter-sweet tannins, flinty and long, luscious finish.”

• Robert Mondavi The Reserve To Kalon Vineyard Cabernet Sauvignon 2018 — this single vineyard To Kalon, from Oakville, Napa Valley is Mondavi’s main source of their best Cabernet Sauvignon grapes. To Kalon had been voted as North America’s best vineyard three times already and Robert Mondavi chose To Kalon to be the home of his winery in 1966. Made from 93% Cabernet Sauvignon, with 5% Cabernet Franc and 2% Petit Verdot. “Intense nose, a fruit bomb but with much more complexity, star anise, cinnamon bark, tobacco, mint, meatier and more textured on the palate, herbal and flinty with lovely lingering licorice finish.”

The Robert Mondavi wines have been given a very nice facelift and with the resources of Constellation Brands and the gifted winemakers behind this iconic Napa winery, Robert Mondavi is back to reclaim its throne as California’s BEST – a title they may not relinquish again with this new-found focus.

Robert Mondavi wines are available in the Philippines through Future Trade International. Those interested in these premium Robert Mondavi Napa wines can contact Eric Khan at federico.kahn@futuretradeinc.com.

The author is the only Filipino member of the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, please e-mail the author at wineprotege@gmail.com, or check his wine training website https://thewinetrainingcamp.wordpress.com/services/.

NLEX Corp. upgrades Subic Freeport Expressway

July 21, 2022 | 12:02 am

NLEX Corp. said on Wednesday that it is investing more in the enhancement of the Subic Freeport Expressway (SFEX) to make it safer for motorists.

“The P105-million worth of improvements, which include pavement surface upgrade, construction of ditch and slope protection, installation of guard rails, and application of hazard paint, intend to make the SFEX and its surrounding slopes safer for motorists,” the company said in an e-mailed statement.

The company aims to make its roads safe for all weather conditions.

“With these enhancements, we expect to further protect motorists from roadside hazards by strengthening the slopes and improving the drainage system and other safety features at the SFEX,” said NLEX Corp. President J. Luigi L. Bautista.

To recall, the company completed in February last year the SFEX capacity expansion.

“A total of 16.4 new lane kilometers, two new bridges, and a new tunnel were constructed as part of the P1.6-billion expansion project,” it said.

It also installed international standard LED lights, raised the elevation of the Maritan Highway-Rizal Highway-Tipo Road junction, and enhanced the area’s drainage system.

“This was constructed despite the pandemic in response to the need to accelerate business activities and facilitate the flow of goods and services between the economic zones in Clark and Subic,” the company said.

The company announced recently that it had allocated P1.2 billion for this year’s capital expenditures to improve customer experience.

NLEX Corp. is part of Metro Pacific Tollways Corp., the tollway unit of Metro Pacific Investments Corp. (MPIC).

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Coins.ph, Globe tie up for crypto transactions

July 21, 2022 | 12:01 am

crypto-currency — MICHAEL FÖRTSCH-UNSPLASH

COINS.PH, a fiat and crypto wallet services provider in the Philippines, said on Wednesday it has partnered with Globe Telecom, Inc. for a new offering for its loyalty program Globe Rewards.

“Starting July 20, prepaid and postpaid subscribers can start exchanging rewards points in their new GlobeOne app for Bitcoin and cryptocurrency vouchers redeemable at Coins.ph,” the crypto wallet company said in an e-mailed statement.

Through the partnership, users can redeem rewards points and complete a crypto transaction without using their own money. The new feature on the Coins.ph application is called Redeem Crypto. Users must be “Level 2 verified” to redeem.

“The available denominations are P5, P10, P25, P50, and P100, each with a corresponding number of points required for redemption,” the company said.

The goal is to “empower Filipinos in their quest for financial freedom,” said Wei Zhou, CEO of Coins.ph.

“Customers can now take advantage of mainstream loyalty programs such as Globe Rewards for a low- or almost zero-risk approach to get started with their crypto journey.”

The company also said that it will be opening opportunities for enterprises to diversify their loyalty program offerings to “remain competitive and maximize their potential for growth.”

The platform gives access to 24 cryptocurrencies and crypto tokens, including BTC (Bitcoin), ETH (Ether), BCH (Bitcoin Cash), BAT (Basic Attention Token), XRP (Ripple), USDC (USD Coin), USDT (Tether), AAVE, AXS (Axie Infinity Shard), CHZ (Chiliz), GALA, KNC (Kyber Network Crystal v2), LINK (Chainlink), MATIC (Polygon), MKR (Maker), SAND (The Sandbox), SLP (Smooth Love Potion), UNI (Uniswap), and YGG (Yield Guild Games).

“Cryptocurrency values are highly volatile and prices may go up and down in real time. Buying Bitcoin and other cryptocurrencies carries a high level of risk and may not be suitable for everyone,” Coins.ph said. — Arjay L. Balinbin

La Salle battles San Sebastian for top two finish

July 21, 2022 | 12:01 am

KNOCKING at joint third place, EcoOil-La Salle and Apex Fuel-San Sebastian figure in a crucial tiff to stay in the thick of the race for a top two finish and an outright semifinal berth in the PBA D-League Aspirants’ Cup today at the Smart Araneta Coliseum.

Game time is at 12:30 p.m. with the winner between the Green Archers and the Golden Stags gaining a share of second place with idle Marinerong Pilipino (3-1) behind unbeaten pacer Wangs Basketball @26-Letran (3-0).

La Salle, parading a formidable core led by UAAP Mythical Five member Michael Phillips, looms as a slight favorite but coach Derrick Pumaren is not keen on being complacent especially against the gritty wards of mentor Egay Macaraya.

The Golden Stags indeed are becoming a tough nut to crack even against an established La Salle program with a two-game win streak highlighted by a 40-point demolition of AMA Online, 93-53.

But more than trying to land an upset over the towering Green Archers that finished third in the UAAP Season 84, Mr. Macaraya sees this as a learning opportunity for his frontline.

Adalem Construction-St. Clare (2-2) eyes a bounce back win after a loss while Builders Warehouse-Santo Tomas (0-3) aims to break through in their separate outing at 10:30 a.m. — John Bryan Ulanday

Dining In/Out (07/21/22)

July 21, 2022 | 12:01 am

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Kenny Rogers Roasters brings back chimichurri

KENNY Rogers Roasters is bringing back its famous chimichurri to the menu — not only with the roasted chicken but with more meat selections this time around. Kenny Rogers Roasters is now offering seven meat options. Apart from Chimichurri Roast, guests can also choose from their ribs, premium steak, burger steak, burger bun, Schublig sausage, and fish as protein options. Starting July 18, guests can have chimichurri in their Kenny Rogers Roasters favorites, which can be enjoyed solo or as a group. Kenny’s Solo B plate (starts at P290) comes with a portion serving of their choice of meat with chimichurri sauce, two side dishes, rice, and a muffin. A Group Meal (starts at P1,025) comes with a whole serving of their choice of meat with chimichurri sauce, four side dishes, four cups of rice, four muffins, and 1.5 liters of soda. Meanwhile, the All Chimichurri Group Meal (starts at P1,330) includes a quarter chimichurri roast, a half-slab of chimichurri ribs, one chimichurri Schublig sausage, one chimichurri burger steak, four side dishes, four cups of rice, four muffins, and 1.5 liters of soda. Completing the Chimichurri Festival are two new side dishes, which are offered for a limited time only: the baconized corn and chips & salsa. With every Solo Plate purchased of Chimichurri, Kenny Rogers Roasters will donate P1 to selected NGOs to support local farmers. The Chimichurri Farmvocacy is Kenny Rogers Roasters’ way of helping local farmers in today’s challenging time. The chimichurri dishes are available for dine-in, takeout, or delivery through www.kennyrogersdelivery.com.ph, hotline: 8-555-9000, or via Grab Food and Food Panda.

Shakey’s offers Spinach Pizza selection

SHAKEY’S Pizza launches its Spinach Pizza selection, featuring three flavors, and Spinach Roll-ups. Made with fresh spinach, the pizzas also come with either bacon, shrimp, or mushroom toppings.

Sheraton opens Pinas Muna Hub

THE SHERATON Manila Hotel at the Newport Grand Wing in Resorts World Manila (RWM) has opened its first in-house souvenir shop that features all-Filipino fare. It is called the Pinas Muna Hub, and is filled to the brim with expertly crafted and locally made products, gift items, single-origin coffee, and a variety of delicacies. Located at the front and center of the hotel’s lobby, the Pinas Muna Hub is open daily from 8 a.m. to 8 p.m. The souvenir shop’s inventory includes a line of Filipino-signature Barong Tagalog and hand-woven pouches from Marikina, single-origin Hineleban Farms coffee, and award-winning Theo & Philo Artisan Chocolates among other available delicacies. For more information visit www.rwmanila.com.

Mekeni brings tocino to the US market

MEKENI Food Corp. has announced that they are bringing their tocino to the US market through Island Pacific Supermarket. Last January, Mekeni made their kikiam and fish balls available on the US West Coast also through its partnership with Island Pacific Supermarket, one of the area’s biggest Asian/Filipino supermarkets. For more information about their products, visit Mekeni’s official Facebook page at www.facebook.com/mekeniph.

FamilyMart now offers milk tea

FAMILYMART Tea Creations is the latest addition to the offerings of the Japanese convenience store brand’s local franchise, catering to the popularity of milk tea and other tea-based drinks in the country. Available in five variants, FamilyMart Tea Creations offers two types; milk tea, which comes in chocolate, wintermelon, and honeydew flavors, featuring tapioca pearls as sinkers; and fruit tea, which comes in grape and lychee flavors, and served with nata or coconut gel sinkers. Each 16 oz cup goes for P95 for the milk tea, and P80 for the fruit tea, while additional sinkers go for P18. The drinks are initially available at select stores (Udenna Tower, Market! Market!, and Science Hub in Taguig) from 10 a.m. to 8 p.m. for walk-in customers, but those in other areas can get their fix delivered via GrabFood.

Jollibee brings back JolliBots

THE ROBOT-themed Jolly Kiddie Meal toys are back. With its highly successful launch last February, Jollibee is bringing back the JolliBots starting July 16. Leading the pack is Jollibee who pops out of a Chickenjoy Bucket by retracting both arms and flipping its lid. Simply twisting and turning the upper corners of the Jolly Spaghetti box will reveal Hetty. A Jollibee Chocolate Sundae will reveal Twirlie from the robot cup — just split the ice cream portion and rotate the arms to extend the toy figure. Kids can complete the JolliBots experience with the robotized Jolly Crispy Fries and Yumburger. They have to flip the upper portions of the toys to reveal Popo and Yum, respectively. Each of the five collectible pieces are available with every purchase of a Yumburger (P82), Yumburger Meal with Drink (P102), Jolly Spaghetti (P97), Jolly Spaghetti Meal with Drink (P107), Burger Steak (P97), Burger Steak Meal with Drink (P114), Chickenjoy with rice (P129), or a Chickenjoy Meal with Drink (P144), each coming with its own Jolly Joy Box. Collectors can also get their hands on the complete set with a purchase of the six-piece Chickenjoy Bucket for P624.

How travel-friendly is the Philippine passport?

July 21, 2022 | 12:01 am

A Philippine passport holder can travel to 67 visa-free or visa-on-arrival locations out of 227 possible travel destinations. With this, it moved up three spots to 80th out of 199 passports in the third quarter release of the Henley Passport Index, which ranks passports according to the number of destinations their holders can access without prior visa. The Philippine passport tied with Cape Verde Islands and Uganda.

Security Bank raises P16 billion from offer of 1.5-year peso bonds

July 21, 2022 | 12:01 am

SECURITY BANK Corp. has raised P16 billion from 1.5-year corporate bonds, more than the original plan of P1 billion as the offer was oversubscribed.

The bank said in a disclosure to the stock exchange that the bonds maturing in 2024 were successfully issued and listed on the Philippine Dealing & Exchange Corp. on Wednesday.

“Security Bank raised P16 billion worth of bonds at 3.7407% per annum, with a tenor of 1.5 years. Due to strong demand for the bonds, the bank exercised its oversubscription option and accepted offers above the initially announced P1-billion issue size,” the lender said.

“Security Bank offered the bonds to support its lending activities and expand its funding base,” it added.

Security Bank Executive Vice-President and Financial Markets Segment Head Raul Martin A. Pedro said the successful issuance and oversubscription is testament to investor confidence in the lender.

The bonds were issued out of Security Bank’s P100-billion peso bond and commercial paper program.

The offer period for the bonds was July 5-15. The bonds were offered at a minimum investment of P1 million and increments of P100,000 thereafter.

The lender tapped Philippine Commercial Capital, Inc. (PCCI) to be the sole bookrunner for the issuance, it said in a previous stock exchange disclosure.

The joint lead arrangers and selling agents for the transaction were PCCI and SB Capital Investment Corp.

Security Bank recorded a higher net income in the first three months of the year amid lower loan loss buffers and an improvement in its core earnings.

The lender’s net profit rose by 66% to P2.7 billion in the first quarter. This translated to a return on shareholders’ equity of 8.81%, while return on assets stood at 1.55%.

It was the 10^th biggest private bank in the country with total assets of P707 billion as of end-March.

Security Bank shares closed at P89 apiece on Wednesday, down by 0.56% or 50 centavos. — K.B. Ta-asan

Bayan Muna asks SC to reverse ruling on Meralco price hike

July 21, 2022 | 12:01 am

BAYAN MUNA party-list group on Wednesday asked the Supreme Court (SC) to reconsider its decision upholding a 2013 approved rate hike application of P22.6 billion by Manila Electric Co. (Meralco).

In a 37-page motion, the group said the Energy Regulatory Commission (ERC) abused its discretion when it approved the “highest power hike in history.”

“The highest rate hike is not at all the consumers’ fault, but those of the power sector,” said Bayan Muna. “Despite this, it will be the consumers who will bear this great burden and ultimately pay for the rate hike as part of our electricity bill.”

The group added that the court committed a reversible error when it held that the ERC did not abuse its discretion when it “hastily” approved Meralco’s rate increase.

Under the latest High Court decision, Meralco is allowed to implement an additional charge of P4.15 per kilowatt hour, SC Associate Justice Amy C. Lazaro-Javier said in her separate dissenting opinion.

Bayan Muna pointed out that the ERC’s approval of the price hike violated the Electric Power Industry Reform Act of 2021.

Under the law, the ERC is mandated to enforce the rules and regulations that ensure the rational pricing of electricity.

The distributor is also tasked to “protect the public interest as it is affected by the rates and services of electric utilities of electric power.”

In 2014, the tribunal issued a temporary restraining order on Meralco’s staggered charges and recovery costs totaling P22.6 billion.

The country’s biggest electricity distributor applied for the rate increase after the maintenance shutdown of Shell Philippines Exploration B.V.’s Malampaya gas-to-power project, which forced the company to buy more expensive supplies from the Wholesale Electricity Spot Market.

Bayan Muna noted that the ERC neglected its duty to protect the consumers from unreasonable prices of electricity.

“From where we sit, the consumers do not feel that their interests are being protected and promoted. There is a failure of regulation,” former Bayan Muna Rep. Carlos Isagani T. Zarate said in a separate statement.

“With the current dispensation, the consumers’ welfare is not only at the mercy of the power players, but also at the mercy of how well (or badly) the ERC would exercise its vast powers,” he added.

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

How PSEi member stocks performed — July 20, 2022

July 21, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, July 20, 2022.

Peso weakens on latest balance of payments data

July 20, 2022 | 9:00 pm

THE PESO declined against the dollar on Wednesday as latest data showed the country posted another balance of payments deficit in June. — BW FILE PHOTO

THE PESO weakened against the dollar on Wednesday as the country’s balance of payments (BoP) position was at a deficit in June.

The local unit closed at P56.29 per dollar on Wednesday, losing 3.5 centavos from its P56.255 finish on Tuesday, based on Bankers Association of the Philippines data.

Year to date, it has weakened by 10.3% or by P5.29 from its close of P51 versus the dollar on Dec. 31, 2021.

The peso opened Wednesday’s session at P56.18 versus the dollar, which was also its intraday best. Its weakest showing was at P56.35 against the greenback.

Dollars exchanged rose to $710.05 million on Wednesday from $663.05 million on Tuesday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso weakened versus the dollar as latest BoP data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday showed the country’s external position was at a deficit last month.

The country’s BoP position stood at a $1.57-billion deficit, wider than the $312-million gap booked a year ago. Still, this was lower than the $1.61-billion deficit recorded in May, which was the widest gap since $2.019 billion seen in February 2021.

In the first half of the year, the country’s BoP deficit widened to $3.1 billion from the $1.9 billion recorded in the same period in 2021.

The BSP expects the country’s BoP to yield a deficit of $6.3 billion this year or equivalent to -1.5% of gross domestic product.

The peso also weakened due to concerns over rising coronavirus disease 2019 (COVID-19) cases in the country, Mr. Ricafort said.

“The peso weakened due to some caution ahead of the US existing home sales report,” a trader said in an e-mail.

“The local currency might appreciate [on Thursday] as expectations of an ECB (European Central Bank) rate hike could taper some of the greenback’s strength,” the trader added.

ECB policy makers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday to tame record-high inflation, two sources with direct knowledge of the discussion told Reuters.

To cushion the impact of the higher borrowing costs, policy makers are also expected to announce a deal to help indebted countries like Italy on the bond market. The deal will require they stick to European Commission rules on reforms and budget discipline, the sources said.

The ECB is set to deliver its first rate hike in more than a decade on Thursday against a difficult economic backdrop exacerbated by the war in Ukraine. Inflation is high and rising while economic growth has slowed and a political crisis in Italy is keeping investors on edge.

That dynamic creates a balancing act for the ECB, between raising rates to curb price growth and ensuring that the most indebted of the euro zone’s 19 member countries don’t run into financial trouble as a result.

The trader expects the local unit to move within P56.20 to P56.40 per dollar on Thursday, while Mr. Ricafort gave a forecast range of P56.15 to P56.35. — K.B. Ta-asan with Reuters