Cebu Pacific cancels 30 flights, PAL mounts more repatriation flights during extended MECQ

August 30, 2021 | 12:02 am

CEBU Pacific and its regional brand Cebgo canceled several flights as the government extended the strict community quarantine status of the capital region until Sept. 7.

“The Philippine government, through the Inter Agency Task Force (IATF) Resolution No. 135-A, has retained the Modified Enhanced Community Quarantine (MECQ) status of the National Capital Region until Sept. 7, 2021,” Cebu Pacific said in a statement over the weekend.

“Following this, Cebu Pacific and Cebgo have canceled… flights from Sept. 1 to 5, 2021,” it added.

The airline canceled 30 domestic flights. Among the affected flights are those from Manila to Bohol, Boracay, Cebu, Coron, Davao, Tacloban, Masbate, San Jose, and Siargao.

It also canceled flights from Cebu to Boracay, Butuan, Cagayan de Oro, Siargao, and Tacloban.

The budget carrier said it will continue to operate flights for essential travel during the period.

PHILIPPINE AIRLINES
Meanwhile, flag carrier Philippine Airlines (PAL) said in an advisory that it will be mounting more repatriation flights from the United Arab Emirates, Malaysia, and Thailand next month.

It will have repatriation flights from Dubai to Manila on Sept. 2, 4, 6, 8, and 14. Its flight from Kuala Lumpur will be on Sept. 4, followed by a flight from Bangkok on Sept. 9.

PAL said only Philippine passport holders are allowed to board the repatriation flights.

PHILIPPINE AIRASIA
Low-cost carrier Philippines AirAsia is offering a promo fare (P199 one-way base fare) for authorized travelers, especially returning overseas Filipino workers.

Destinations include Puerto Princesa, Iloilo, Caticlan, Tacloban, Bohol, Kalibo, Cagayan De Oro, Bacolod, Davao, General Santos, and Zamboanga.

“Booking should be made from 30 Aug. to 5 Sept. to avail of the promo which is available for travel from 30 Aug. 2021 to 31 Jan. 2022,” the low-cost airline said.

Philippines AirAsia also offers an unlimited date change. — Arjay L. Balinbin

Chery Tiggo 5X: A wallflower with star power

August 30, 2021 | 12:01 am

VELO_image6_CHERY — Lending presence and some Euro inspiration to this crossover in the middle of the local Chery portfolio are a big blacked-out grille, black mesh side air intakes, and aggressive-looking headlamps. — PHOTO BY MANNY N. DE LOS REYES

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Priced just right, this crossover contender punches above its class

SANDWICHED BETWEEN its siblings, the price-leading entry-level Tiggo 2 (which starts at a stunningly low P695,000 for the stick-shift version) and the head-turning European-inspired all-new Tiggo 7 Pro (which retails for P1.198 million and boasts a staggering array of standard comfort, luxury and safety features), the Chery Tiggo 5X finds itself in somewhat of a gray area.

It’s not as generously sized and upscale as its more expensive sibling, but isn’t exactly priced to draw out the budget-conscious buyers like its entry-level little brother.

So while the Tiggo 2 does a good job of attracting potential buyers who would otherwise be looking at tiny hatchbacks or entry-level variants of subcompact sedans, the Tiggo 5X finds itself being compared to a lot of other cars, from a stalwart crossover like the MG ZS, to the ever-popular subcompact sedans like the Toyota Vios and Honda City.

The Tiggo 5X 1.5 starts at P818,000 for the manual transmission variant — curiously the same price as the starter manual-equipped MG ZS 1.5 Style. Pricing stays very close even with the lowest priced automatic models (P860,000 for the Tiggo 5X AT and P868,888 for the ZS Style AT).

But while the ZS has two more higher-end automatic variants at P898,888 and P998,888, the Tiggo 5X only has one at P970,000. Its pricing also puts it smack dab in the upper half of the vast range of the Vios lineup (as well as that of almost all other subcompact sedans).

For many people, a spacious and high-riding crossover that’s priced the same as a small and less versatile sedan is a no-brainer. This alone dramatically expands the Tiggo 5X’s potential market.

Of course, I cannot always be on the same wavelength as others when it comes to a vehicle’s looks and a new brand’s perceived reputation and image. Those would be mostly subjective.

Nonetheless, I find the Tiggo 5X’s design good-looking enough in a chunky way — almost like a Nissan Juke but with less of the visual quirkiness. The chunky side panels, high beltline, and thick C-pillar all connive to make the car look shorter than it is, but it’s actually longer and more spacious than it seems.

This crossover punches above its weight with a generous array of standard features inside and out. The big blacked-out grille, black mesh side air intakes, and aggressive-looking headlamps lend the Tiggo 5X that “Euro-inspired face” that’s both compelling and characterful.

The Tiggo 5X’s 17-inch alloy wheels wear a very sporty five-triple-split spoke design and are wrapped by big 215/60R17 rubber that works wonders in soaking up bumps and potholes and makes curb-jumping relatively painless — as opposed to some crossovers’ tires that have aspect ratios of 50 or even less and result in a choppy or jarring ride.

Inside the well-crafted cabin with plenty of soft-touch surfaces (in contrast to many small sedans’ hard plastic inner door panels), judicious space utilization results in a spacious cabin with generous headroom, legroom, and shoulder room for both front and rear passengers. Cargo space is better than most sedans’ trunk space and can be increased a lot more by folding down the 60:40-split rear seats.

The faux leather upholstery on the highly supportive and comfortable seats feels plush, with multi-way power adjustments for the driver’s seat. Yet another premium feature is the electronic parking brake, which does away with the conventional handbrake lever for greater convenience (and more space on the console). There’s also push-button engine start/stop, a power sunroof and rear aircon vents.

Under the hood of the Tiggo 5X is a smooth and impressively refined 1.5-liter four-cylinder petrol engine that produces 114ps and 141Nm of torque — hardly superlative numbers but plenty adequate for everyday driving. No less than automotive giant Borg Warner developed the engine’s dual variable valve timing system. Other advanced engine technologies include cylinder head-integrated exhaust manifolds, and an intake manifold-integrated water-cooled intercooler.

Since the Tiggo 5X is a step above the Tiggo 2, there are a lot more safety features included like HDC or hill descent control, which allows the car to safely descend steep roads in full control, and HHC or hill hold control, which automatically uses the brakes to prevent the car from rolling backward when you want to accelerate from a standstill on a slope.

Another safety feature of the car is the 360-degree around-view monitor, which provides more viewing angles and wider vision for a stress-free drive. The Tiggo 5X’s instrument display utilizes a seven-inch LCD, which is among the largest in its class. For infotainment, the Tiggo 5X’s huge and nicely intuitive nine-inch touchscreen display allows you to control and display your phone’s various functions (including playlist and navigation) via Mirror Link.

The Tiggo 5X’s leather-wrapped steering wheel has intelligent speed control, which integrates cruise control, overspeed alarm, active speed limit and other functions. A welcome change from most cars is the four-door power window in which all four windows support one-touch push-button descend. I also applaud the use of idiot-proof large knobs and buttons for the climate control that let you set the cabin climate without taking your eyes off the road.

All things considered, the Chery Tiggo 5X has what it takes to steal sales from any number of sedans or crossovers — and not just based on a lower price. And if you’re still having second thoughts about the after-sales experience, there’s always Chery’s industry-leading five-year/150,000-km general warranty and 10-year/one-million-km engine warranty plus three-year free PMS and three-year roadside assistance.

Profit taking, investor sentiment drives ICTSI stock

August 30, 2021 | 12:01 am

INTERNATIONAL Container Terminal Services, Inc.’s (ICTSI) stock price remained largely unchanged on a week-on-week basis but was among the most actively traded stocks during the period as both selling and buying pressures evened out.

Data from the Philippine Stock Exchange (PSE) showed ICTSI ranking eighth in value turnover with P876.42-million worth of 4.87 million shares having exchanged hands on the trading floor from Aug. 23 to 27.

ICTSI shares closed at P178 apiece on Friday, unchanged from the Aug. 20 close. For the year, the stock has gone up 41.3%.

The week started with the stock trading as high as P185.10 per share on Aug. 23 with 1.31 million shares worth P239.08 million exchanging hands, before returning to its opening price of P180 to close that day. The next day saw the stock’s highest value and volume turnover with P335.55 million and 1.88 million shares, respectively, but closed lower at P177.30 per share.

“The share has been on a sideways movement [last] week amid the presence of both selling and buying pressures,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in an e-mail.

“The stock’s steep rally for this year so far makes it susceptible to profit taking. This explains the selling pressure. At the same time, there is buying pressure with respect to the stock, a reflection of investors’ confidence towards its strong fundamentals, evident in its first-half financial results,” he added.

ICTSI reported a 98.2% increase in its attributable net income to $106.592 million in the second quarter from $53.78 million. This exceeded its attributable net income of $101.76 million for the entire 2020.

The second-quarter result brought attributable net income in the first half to $196.66 million, up 73.5% from $113.38 million in 2020’s comparable six months.

Meanwhile, ICTSI saw two developments last week that include the announcement of the company looking at business opportunities in the technology space and the launch of a new feeder service by its Argentine subsidiary TecPlata.

In an online forum organized by the Makati Business Club, ICTSI Executive Vice-President Christian Martin R. Gonzalez said the company is looking at opportunities in the technology space “at least at the terminal level.” He also noted that they are also looking at opportunities “vertically, within the logistics sector,” but noted they are careful not to compete with their customers in that regard.

Meanwhile, ICTSI subsidiary TecPlata, which operates at the Port of La Plata in Argentina, is collaborating with Brazil’s Sta. Fe Port Administrative Entity to connect the latter’s port to the rest of Brazil and Asia via a new feeder service that would make a minimum of two calls per month using 500-TEU (twenty-foot equivalent unit) barges operated by service operator Newport Management.

“There are still room for questions with respect to ICTSI’s planned venture into the technology space. In what part of the technology segment will it specifically be? Will it complement its main operations? I believe investors are watching out for further details with respect to this plan,” Mr. Tantiangco said.

“As for the development with TecPlata, this is seen to somehow give boost to ICTSI’s financial performance. This is seen as positive for its investors,” he added.

In a separate e-mail, AAA Southeast Equities, Inc. Head of Research Christopher John A. Mangun considered these developments to be of little bearing to last week’s stock price movements.

“I think investors will wait for more developments on these tech-upgrades before factoring them in. The new feeder service in Argentina is a welcome development but it is also a non-event,” he said.

Asked for his net income forecasts. Mr. Mangun said it would depend largely on the results during the last six months of the year.

“[I]f everything goes well, we may see them post 10-15% higher revenues and earnings from its pre-pandemic 2019 levels,” he said.

For Philstocks’ Mr. Tantiangco, ICTSI may be able to keep its strong earnings growth momentum for the remainder of the year, given the global economy and international trade also recovers and that the company “would be able to maintain its cost efficiency.”

“Currently, ICTSI has an initial support seen at its 20-day exponential moving average (P176.71 as of Aug. 27), and a secondary support seen at the P175.00 level. Meanwhile, it has a resistance seen at 186.00,” he said.

“The COVID-19 pandemic is still seen as a significant risk to ICTSI. A resurgence of global cases may lead to the reimposition of lockdowns and consequently a weakening of economies around the world which is seen to negatively affect ICTSI’s operations,” he added.

Meanwhile, AAA Southeast Equities’ Mr. Mangun pegged support and resistance levels at P170 and P185, respectively.

“The stock is trading at near all-time high levels and is one of the best performers for the year due to the changes that its management made at the onset of the pandemic. I think most investors are already looking at this and if they are not, they should be,” Mr. Mangun said. — Abigail Marie P. Yraola

Style (08/30/21)

August 30, 2021 | 12:01 am

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Celebrate pride with COS

COS worked with artist Coco Capitán on a T-shirt capsule collection, featuring three unique designs in her signature handwriting style to share messages of love, freedom and inclusivity. “Always love because love is always love” is a shout-out to love in all its forms, available at COS Manila SM Aura Premier at P3,250. Two other designs “A boyfriend called my girlfriend” and “Would you be my boyfriend girl queer friend?” explore gender orientations, inspired by Coco Capitán’s personal relationships, are available in COS EU and US. The designs are embroidered onto an organic heavy-weight cotton T-shirt to lend a boxy, structured fit and are available in unisex sizing. Alongside the T-shirts, a special edition of the repurposed cotton tote will also be available. Featuring the colors of the Progress flag, the tote utilizes excess cotton from COS’ production process, made to replace disposable packaging and 100% recyclable. A 100% of the proceeds from the sales of T-shirt capsule collection and 100% of the profits from the sales of the Pride edition tote will be donated to: Galang, a female-led non-profit organization working with and for economically disadvantaged LGBTQI (http://www.galangphilippines.org/) and Love Yourself, a non-profit LGBT organization that provides safe spaces and services (https://loveyourself.ph/).

Salvatore Ferragamo presents the new SF logo

SALVATORE Ferragamo presents the SF logo, featuring two artfully reproduced initials (S and F). The SF Logo line makes its debut with the Pre-Fall 2021 collection for men, presenting several product categories with fresh appeal and a focus on low environmental impact. Three of the brand’s best-selling footwear models are included: the loafer, the driver and the sneaker. The SF logo is presented in various ways. These include either a small, side buckle logo on the band of the shoe upper, or a central decorative logo set within a metal frame and with the two initials either varnished to match the color of the leather or decorated with rhinestones. The sneaker has a side buckle logo in light metal-effect resin or a printed, maxi, color-contrast logo. The logo has also been added to a selection of large and small leather goods and belts. The SF logo line incorporates nylon in the large leather goods, creating a unique dégradé-effect on the shoulder bag, backpack, and briefcase. Made of Econyl nylon (a fiber that has been entirely regenerated from fishing nets and from other nylon waste), sewn with thread that is made from 100% post-consumer certified recycled PET, and finished with a zip tape made with regenerated polyester yarn made from recycled plastic bottles, SF logo nylon accessories emphasize environmental consciousness. The logo features as a bold rubber version on wallets and credit card holders in the small leather goods range. Belts come in two models, with an SF logo buckle and a metal frame or with the SF initials set within Ferragamo’s iconic Gancini hook.

Uniqlo releasing new Ines De La Fressange 2021 Fall/Winter collection

GLOBAL apparel retailer Uniqlo announces its latest collaboration collection with lifestyle icon and symbol of French chic Ines de la Fressange. The inspiration for the Uniqlo/Ines De La Fressange 2021 Fall/Winter collection was the Swiss village of Rossinière, where Ms. De la Fressange spends her Christmas holidays. From a base of beige moss-green earth tones, the many items offer an expanded range of stylings such as cashmere blend knit ponchos, and 3D Knit dresses with a simple yet shapely silhouette. The collection includes items with check patterns or small floral accents, ensemble knits in a lambswool material, and a characteristically De la Fressange style of masculine jacket. Small items such as berets and reusable shopping bags in a wide variation of patterns are also included. The 41 items in the 2021 Fall/Winter collection will be available at select Uniqlo stores across the Philippines and through the uniqlo.com/ph online store starting Sept. 10.

Montblanc extends its ‘M’ pattern collection

SINCE first launching last year, the Montblanc M_Gram 4810 has quickly established itself as a signature Montblanc leather collection with its original all-over logo treatment. The collection now sees the arrival of new multi-functional medium and small leather pieces that can be worn in different ways — around the neck, cross body, carried by hand, on the belt, alone or even mixed with other pieces. The assortment has also been enriched with a selection of new pieces that stand out in a bright all blue combination. The PVC coated-canvas resistant to scratches and everyday wear is paired with black leather trimming details to enhance the craftsmanship of the Montblanc M_Gram 4810 collection, while giving it a sophisticated design twist. By simply adding a shoulder strap, available both in leather and webbing, wrist handle or necklace, the leather piece — pocket, business card holder, wallet 8cc with zip, necklace strap, and coin case zip — can be worn completely differently and have different uses. Even the smallest accessories can be worn in unexpected way, around the neck or wrist, or on a belt. The Folio Mini, and Mini Envelope, can, with the addition of a shoulder strap or wrist handle, can serve many different purposes and looks. Then there are the Backpack, Clutch, and Vanity Bag, additional functional pieces for busy days on-the-go for nights away enrich the current assortment. The necklace strap, shoulder strap, and wrist handle are sold separately.

Lacoste presents new sneaker silhouette

LACOSTE presents its new footwear silhouette, the L001, which takes Lacoste’s rich tennis heritage and twists it into a new modern shoe. The sneaker’s key details are taken from the Lacoste archive; the Rene, the first ever shoe created by Rene Lacoste, and a vintage racket from the 1980s. The retro shape and mood of the Rene informs the spirit of the new L001, while kinetic lines running along the racket’s handle are directly transferred into an angular triangular design on the sneaker’s upper. The all-new shoe pays tribute to the iconic details and recognizable motifs of classic sportswear; the clean stripes and the subtle use of primaries brights and classic hues; timeless white, court green, rich navy, light mahogany, plum, saffron, classic red and mint. Clean, geometric lines compliment a classic herringbone-patterned upper, which nods to classic footwear styles. A thick yet streamlined sole has a nostalgic appeal, while a smooth tumble leather makes this an elevated choice, workable for all occasions. While there is visible Croc branding on the heel, logos are treated lightly and subtly, crafting a minimalist look that ensures longevity. In the Philippines, the L001 will be available at Lacoste retail stores and lacoste.com.ph (http://laco.st/RHnzUdNA) starting Sept. 8, and is now available at Zalora PH (https://zlrph.com/3AClV60).

PH art and culture honored in online make up tilt

LET’S Get Glam, an online make-up competition, celebrated Filipino tradition and heritage, culture and arts amid the lockdowns as it challenged aspiring and budding make-up artists to interpret some of the biggest Philippine festivals into works of art. Themed “Buwan ng Wika: Hala Bira,” the virtual tourney was hosted to recognize freelancers and creatives behind small businesses who support their families during these trying times. First prize was awarded to Andrea Asuncion, an advertising student from De La Salle University, who gave a glimpse of the treasures of Davao City in her Kadayawan-inspired look, incorporating indigenous tribal patterns, the colors of the Philippine flag, and images of the Philippine eagle and the South Sea and fresh water pearls. Second place went to Pangasinan-based make-up artist Nyle Lyndon Lalata, who encapsulated the Pintados Festival in a complementing clash of prints and colors; third place went to De La Salle-College of Saint Benilde (DLS-CSB) Culinary Arts student Emmanuel Ochoa for his detailed floral painting suggesting the Panagbenga Festival. The contest was spearheaded by the Let’s Get Glam Organization, composed of culinary arts and tourism management students from the School of Hotel, Restaurant, and Institution Management from DLS-CSB.

PayMaya makes hopping easy for BLK Cosmetics

FOR BLK Cosmetics Co-Founder Jacqe Gutierrez, the company is staying true to its mission in bringing “uncomplicated beauty” to its customers with PayMaya’s digital payments solutions. Gutierrez, together with her partners Anne Curtis-Smith and Stephanie Abellada, launched BLK Cosmetics in 2017, offering a line of makeup essentials such as lipsticks, foundations, blush, and eyeliners, among others. Because BLK Cosmetics had a strong presence online even before the coronavirus disease 2019 (COVID-19) pandemic, the company was able to easily shift its focus and strengthen its business in the digital space. Gutierrez and their team expanded the product line, launched campaigns, and offered personal consultations with their beauty advisors to give customers a similar shopping experience online as they would get in-store. Since BLK Cosmetics had already been using the PayMaya One all-in-one payment terminal in the physical stores, it was an easy decision to also enable their e-commerce store with the PayMaya Checkout online payment gateway solution, which allows them to easily manage and track all of their transactions coming from various channels in a single platform via the PayMaya Business Manager. The PayMaya online payment gateway enables BLK to seamlessly accept PayMaya, Visa, Mastercard, and JCB credit, debit and prepaid cards, as well as other e-wallet accounts. To know more about PayMaya’s products and services for enterprises, visit www.enterprise.PayMaya.com.

Debt yields rise on BTr borrowing plan, Powell

August 30, 2021 | 12:01 am

YIELDS ON government securities (GS) rose last week after the Treasury released its September borrowing plan and as the market awaited the US Federal Reserve’s Jackson Hole symposium.

GS yields rose by 1.37 basis points (bps) on average week on week, based on PHP Bloomberg Valuation Service Reference Rates as of Aug. 27 published on the Philippine Dealing System’s website.

Rates of most tenors rose last week, except for the four-year Treasury bond (T-bond), which dipped by 0.01 bp to yield 2.6124%.

At the short end of the curve, the 91-, 182-, and 364-day Treasury bills (T-bill) went up by 0.33 bp, 1.21 bps, and 0.74 bp, respectively, to fetch 1.1412%, 1.4420%, and 1.6315%.

At the belly, the yields on the two-, three-, five-, and seven-year T-bonds increased by 1.53 bps (to 1.9427%), 0.63 bps (2.2751%), 0.33 bps (2.9652%), and 1.59 bps (3.5982%), respectively.

The long end of the curve also climbed as the rates of the 10-, 20-, and 25-year papers rose by 1.07 bps (to 4.099%), 3.59 bps (4.9739%), and 4.01 bps (4.9601%), respectively.

First Metro Asset Management, Inc. (FAMI) said trading activity last week improved following the Bureau of the Treasury’s (BTr) announcement of its September borrowing plan, which showed less supply of longer-dated papers.

“Overall sentiment was also better ahead of Fed Chair [Jerome H.] Powell’s Jackson Hole speech as downside risks to global recovery emerge,” FAMI said in a Viber message.

The BTr last week said the government plans to raise P250 billion from local debt market in September, 25% higher than the August borrowing program, as market remains awash with cash.

Broken down, it is looking to borrow P75 billion via T-bills and P175 billion via T-bonds. T-bills worth P15 billion will be offered every week. Meanwhile, T-bonds worth P35 billion will also be auctioned off weekly — five-year bonds on Sept. 1, seven-year papers on Sept. 7 and 21, and 10-year debt on Sept. 14 and 28.

On the other hand, Mr. Powell, in his remarks at the virtual Jackson Hole conference on Friday, said there has been clear progress toward maximum employment and that he was of the view that if the US economy evolved broadly as anticipated, “it could be appropriate to start reducing the pace of asset purchases this year,” Reuters reported.

Meanwhile, ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said there was “sharp selling” over the last two weeks as expectations of lower inflation were largely offset by bond supply speculation, a gradual increase in global bond yields, and Bangko Sentral ng Pilipinas comments on its open market operations.

“This sentiment was reflected in the elevated bid levels at BTr’s 11-year bond auction earlier [last] week. Yields adjusted marginally lower after BTr opted not to award at the elevated bids,” Mr. Liboro said in an e-mail interview.

On Tuesday, the Treasury rejected all bids for the reissued 20-year T-bonds with a remaining life of 11 years and seven months as yields rose despite increased investor appetite.

The auction was met with P46.122 billion in bids versus the P30 billion on offer. Had the Treasury made a full award, the bonds would have fetched an average rate of 4.533%, 34.6 bps higher than the yield fetched at the June 29 auction of the papers.

For this week, FAMI and Mr. Liboro said market players are likely to remain cautious as they await more clues on the Fed’s future policy path.

FAMI said local yields could move sideways this week as market digests the Jackson Hole event, with investors anticipating firmer statements from the Fed during its September meeting.

“Subdued economic activity and dovish remarks from Fed would provide upside to US Treasury prices as well as PHP bonds. Investors would likely stay cautious for tenors facing heavy supply risk,” FAMI said.

Mr. Liboro said yield movements this week will likely depend on investor reaction to the Fed and the five-year T-bond auction on Wednesday.

“We expect the five-year bond auction to receive decent demand and be well-supported but for the trend in yields adjusting gradually higher to continue,” he said. — B.T.M. Gadon

The environmentalist case for fish farms

August 30, 2021 | 12:01 am

THIS SUMMER, tens of millions of salmon have been cooked in California in their own native habitat. Record-breaking heat and drought have drawn down the water flows and turned up the temperatures of the state’s streams and rivers. The heat shock, along with the impacts of parasites and fungal blights that are fueled by warmer waters, has decimated the wild salmon populations.

To stem the crisis, scientists have literally gone above and beyond, hurling salmon over dams via pneumatic cannons and trucking millions of fish to the Pacific Ocean to bypass unlivable rivers. Meanwhile, with support from the Biden Administration, policy makers and water managers have diverted precious water resources from farms and cities to stem the salmon die-off. Even so, iconic salmon species such as Chinook could be wiped out along the US West Coast as drought persists.

The extreme preservation measures serve as glaring reminders that America urgently needs bold federal legislation to mitigate climate change. But the salmon crisis is sending another clear message: We need longer-term strategies of adaptation, including a significant expansion of aquaculture in the United States; federal lawmakers, investors, consumers and even environmentalists must all play a role.

While we expand fish farming, we should be extremely wary of creating an environmentally destructive feedlot industry in the ocean. Radical new advances in technologies and marine cultivation methods make it possible to correct existing problems so that aquaculture can grow sustainably.

§The growth potential is especially dramatic in the US, which imports 90% of its seafood — of which more than two thirds is farmed — yet it’s 17^th in the world in aquaculture production.

Here’s the caveat: For decades, aquaculture — and salmon farming in particular — has been a severe threat to wild fish and marine ecosystems rather than a necessary measure to protect them. Still today, salmon farming operations from Patagonia to Norway are plaguing pristine marine ecosystems with parasites, pollution, escaping fish and disease, while depleting wild fish populations like herring and sardines used as feed.

According to the UN, aquaculture could be the most sustainable method of protein production on earth if done right. Farmed salmon is the most environmentally intensive form of aquaculture — more resource-intensive than farmed tilapia, catfish and cod, for example — but salmon are frugal eaters compared to land animals. Fish generally need fewer calories because they’re cold-blooded and don’t have to heat their bodies or build layers of fat and fur for warmth. Nor do they need energy to resist gravity or walk upright on four legs. While it takes almost two pounds of feed to produce a pound of chicken, three for a pound of pork, and about seven for a pound of beef, it takes roughly one pound of feed to produce a pound of farmed salmon.

Because salmon farming is also the most profitable form of aquaculture — an $18 billion global industry that’s expected to nearly double by 2027 — technological advances in this field influence all other forms of fish farming. Where salmon farming goes, so goes aquaculture, is the industry adage.

In just the past decade, salmon farmers have cut in half the volume of wild fish used as feed and developed plant-based foods as alternatives; they’ve found ways to control parasites with robotic and laser technologies that can eliminate the use of insecticides; they’ve introduced closed containment systems that can capture waste and prohibit escapes. The most promising innovation is in fact thousands of years old — a practice known as “multi-tropic” aquaculture used by Chinese farmers circa 500 BC that cultivates diverse underwater farming habitats with multiple species — seaweed, bivalves, and finfish. It’s the marine equivalent of regenerative agriculture practices.

Investors need to support these innovations, and environmentalists need to update their argument against aquaculture rather than blocking its growth, pressuring producers to modernize their practices and calling on lawmakers to regulate the industry effectively.

In the US, the Magnuson-Stevens Fishery Conservation and Management Act has done an exceptional job of managing and restoring coastal fisheries and set an example worldwide. We need a policy this ambitious to guide the growth of aquaculture — requiring the highest standards for production and equipment as proposed by the Aquaculture Stewardship Council, Seafood Watch, and World Wildlife Fund.

Wild-caught seafood remains the dominant source of protein for nearly 4 billion people, mostly in the developing world. As climate pressures intensify, industrial nations must rapidly shift away from wild fish capture, protecting those resources for the populations that need them most. Aquaculture done right can help deacidify oceans and restore their health, supporting a climate-resilient food supply. America must take the lead in helping to ensure that a major expansion of aquaculture protects marine systems rather than destroys them.

Philippines lags behind regional neighbors in public spending on health, social protection in 2020

August 30, 2021 | 12:00 am

The coronavirus pandemic has led governments to increase spending to support economic growth, as well as vulnerable groups through fiscal stimulus packages and the easing of monetary policy to buoy domestic demand. The Asian Development Bank (ADB), in its Key Indicators for Asia and the Pacific report published on Aug. 24, noted in particular a “marked increase” in expenditures on health and social protection last year. The infographic shows the levels of spending in these areas among select economies in the Asia-Pacific* region. Relative to gross domestic product (GDP), the Philippines managed to increase its spending on health and social protection in 2020 by 19% (to 1.06% of GDP) and 139% (to 2.98% of GDP), respectively. However, the country continues to lag behind its neighbors in these two areas.

How PSEi member stocks performed — August 27, 2021

August 30, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Friday, August 27, 2021.

Peso may climb vs dollar as US central bank chief fails to signal taper timing

August 29, 2021 | 10:32 pm

THE PESO is likely to strengthen versus the dollar this week after the US Federal Reserve said it would continue to support the world’s largest economy.

The local unit finished trading at P49.955 per dollar on Friday, appreciating by 2.5 centavos from its P49.98 close on Thursday, based on data from the Bankers Association of the Philippines. It likewise strengthened by 41.5 centavos from its P50.37-per-dollar close a week earlier.

The peso rose after the country’s balance of payments (BoP) yielded a surplus, reflecting higher dollar buffers than initially reported, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed the country’s BoP position stood at a surplus of $642 million in July, significantly bigger than the $8-million surfeit seen a year earlier. It was also a turnaround from the $312-million gap in June and ended two months of the BoP position in deficit.

The BSP attributed this mainly to the foreign currency deposits of the National Government and its net income from investments abroad.

The July BoP position reflects the country’s final gross international reserves (GIR) level of $107.15 billion as of end-July, higher than the preliminary figure of $106.548 billion and the $105.76 billion seen at end-June.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso appreciated as more vaccines arrived in the Philippines, boosting reopening prospects.

Finance Secretary Carlos G. Dominguez III on Thursday said the country has already secured 194.89 million vaccine doses.

Fully vaccinated persons in the country made up 16.71% or 18.061 million of the population, based on latest data from the Johns Hopkins University. This is still far from the 70% the government targets to inoculate by end-2021 to achieve herd immunity.

For this week, Mr. Asuncion said the peso could rise following dovish signals from the US central bank chief at the Fed’s Jackson Hole symposium on Friday.

Fed Chairman Jerome H. Powell said there has been clear progress toward maximum employment and that he was of the view that if the US economy evolved broadly as anticipated, “it could be appropriate to start reducing the pace of asset purchases this year,” Reuters reported.

However, he told the Fed’s annual late-August symposium in Jackson Hole, Wyoming, that the timing and pace of tapering does not involve a signal for when interest rates will begin to rise, a message the market perceived as being dovish.

Meanwhile, Mr. Ricafort said manufacturing data to be released this week could also affect foreign exchange trading.

IHS Markit will release the August Philippine Manufacturing Purchasing Managers’ Index (PMI) on Sept. 1. The country’s PMI stood at 50.4 in July, slipping from the 50.8 reading in June but still above the 50 neutral mark that separates contraction from expansion.

For this week, both Mr. Asuncion and Mr. Ricafort expect the peso to move within P49.70 to P50.20 against the dollar. — LWTN with Reuters

COVID-19 situation to dictate market movement

August 29, 2021 | 10:30 pm

INVESTORS will continue monitoring the coronavirus disease 2019 (COVID-19) situation as the country continues to post record daily tallies, causing the government to extend restrictions.

The benchmark Philippine Stock Exchange index (PSEi) shed 33.91 points or 0.49% to close at 6,786.62 on Friday, while the broader all shares index went down by 0.89 point or 0.02% to 4,204.11.

Still, the PSEi gained 153.40 points from its 6,633.22 finish on Aug. 20.

Financial markets are closed today, Aug. 30, in observance of National Heroes Day.

“The market’s strength for the past sessions is atypical for the season and has rewarded those who were able to buy the dips. Based on our research, August and September are usually down,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a text message on Friday.

Timson Securities, Inc. Trader Darren Blaine T. Pangan said the local bourse performed well this month due to positive corporate earnings reports and economic data releases.

“The ascent of the index was, however, tempered by the resurgence of COVID-19 cases in the capital region, which in turn prompted the government to put back strict quarantine measures in Metro Manila and nearby provinces,” Mr. Pangan said in a Viber message on Saturday.

Metro Manila was placed under enhanced community quarantine for two weeks until Aug. 20 to curb rising cases due to the more infectious Delta variant of COVID-19. This has since been eased to a modified enhanced community quarantine, which will be implemented until Sept. 7.

The Health department logged a record 19,441 new infections on Saturday, bringing total cases to 1,935,700. Active cases stood at 142,679.

Mr. Pangan said the market’s performance in the coming months will depend largely on the COVID-19 situation in the Philippines.

“Major catalysts for the rest of the year are inoculation targets being met, enabling looser mobility restrictions, [the] ramp-up in government infrastructure spending, BSP (Bangko Sentral ng Pilipinas) liquidity support, and global economic recovery boosting OFW (overseas Filipino workers), BPO (business process outsourcing) and Philippine exports,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a separate Viber message on Friday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail that the increase in vaccine arrivals “will structurally help better manage or control new COVID-19 cases in a more sustained manner or at least help prevent the more contagious Delta variant from spreading further.”

“Our [outlook] for the rest of the year is positive, the market will probably test 7,000 and beyond as more investors take positions in anticipation of a sustained recovery in the economy,” PNB Securities’ Mr. Lisbona said. — Keren Concepcion G. Valmonte

Trade dep’t backs 20% restaurant capacity for vaccinated diners

August 29, 2021 | 7:51 pm

TRADE SECRETARY Ramon M. Lopez is recommending 20% capacity for restaurants and personal care shops for vaccinated customers.

“Just 20% capacity. For vaccinated workers and customers,” he told reporters in a Viber message Sunday.

Mr. Lopez has said that he wants government to allow those who are inoculated against coronavirus disease 2019 (COVID-19) to be allowed into dine-in restaurants and personal care shops during the modified enhanced community quarantine (MECQ).

He added museums and exhibits to the list, after a proposal from the Tourism department.

Such businesses are not allowed to run on-site operations during MECQ, which in Metro Manila has been extended until Sept. 7.

“Once approved, this will be part of new protocol,” he said, referring to guidelines from the interagency task force on the coronavirus.

Mr. Lopez has said that the move would incentivize vaccination and bring back jobs as the sectors reopen. Dine-in restaurants account for around a million jobs, while personal care services employ 200,000, he said.

Public transportation and entry to malls, where essential shops like supermarkets are allowed to operate, are still allowed regardless of vaccination status.

Both vaccinated and unvaccinated would also be allowed into these shops when restrictions are eased.

“If it’s not lockdown, all vaccine status allowed subject to operating capacity,” Mr. Lopez said. — Jenina P. Ibañez

GOCC subsidies fall 66% in July

August 29, 2021 | 7:50 pm

BUDGETARY SUPPORT to government companies declined 66% to P6.079 billion in July, with the National Irrigation Administration (NIA) and the National Housing Authority (NHA) receiving the top allocations, the Bureau of the Treasury (BTr) said.

Preliminary data from the BTr indicate that subsidies to government-owned and -controlled corporations (GOCCs) last month fell 27% from subsidies granted in June.

The NIA remained the top subsidy recipient, having been allocated P2.756 billion, or 45% of the total. The subsidy rose 44% from a year earlier and 4.2% larger than the June subsidy.

The NHA received P1.483 billion, accounting for 23.4% of the total. The agency did not receive financial support from the government in July 2020.

Other GOCCs that received allocations in July were the National Power Corp. with P933 million, the Philippine Heart Center P147 million; the Philippine Postal Corp. P135 million, and the National Kidney Transplant Institute with P107 million.

Others receiving more than P50 million were the Civil Aviation Authority of the Philippines (P98 million), the Philippine Children’s Medical Center (P87 million) and the Light Rail Transit Administration (P85 million).

GOCCs that received no subsidies in July were the: Bases Conversion Development Authority, the Development Academy of the Philippines, the Local Water Utilities Administration, the National Food Authority, the National Home Mortgage Finance Corp., the Philippine Crop Insurance Corp., the Philippine Fisheries Development Authority, the Philippine Health Insurance Corp. (PhilHealth), the Philippine National Railways, the Subic Bay Metropolitan Authority and the Tourism Infrastructure and Enterprise Zone Authority.

In the seven months to July, GOCC subsidies fell 35.6% from a year earlier to P94.361 billion due to base effects after the government coursed through the Social Security System a P50-billion wage subsidy program to help employers retain their workers during the lockdown last year.

PhilHealth got the biggest subsidy worth P45.456 billion during the seven months, followed by the NIA with P19.596 billion.

Subsidies are granted to GOCCs to cover operational expenses not supported by their revenue. — Beatrice M. Laforga