Cebu Pacific resumes flights to Sydney

July 4, 2022 | 12:05 am

BUDGET carrier Cebu Pacific announced that it resumed its direct flights between Manila and Sydney as of July 1 amid the easing of travel restrictions in the Philippines and Australia.

“With this route resumption, we are pleased to fly once again to and from this destination after more than two years,” Cebu Pacific Chief Commercial Officer Alexander G. Lao said in an advisory. “This also allows Filipinos to reunite with friends and family. We will continue working on boosting seamless connections across our network to address demand.”

The airline will offer flights between Manila and Sydney three times per week on Monday, Wednesday and Friday.

According to the advisory, Flight 5J 39 departs Manila at 11:20 p.m. and arrives at Sydney Kingsford Smith Airport at 9:50 a.m. (local time) the following day. Its return flight, 5J 40 flies out of Sydney at 11:20 a.m. (local time), and arrives in Manila at 5:50 p.m. every Tuesday, Thursday and Saturday.

Sydney-bound tourists must present printed copies of their coronavirus disease 2019 (COVID-19) vaccination certificate upon check-in. Travelers must also complete and submit their digital passenger declaration form at least 72 hours before departure.

“Coming home, boosted Filipinos no longer need to take a COVID test pre-departure. For more information, passengers may refer to the Cebu Pacific Travel reminders page for the latest updates and complete travel guidelines to their destination,” the firm added.

Cebu Pacific said it will continue to offer its guaranteed low fares to stimulate travel across its flight network, which covers the widest Philippine destinations.

It added that it will implement “a multi-layered approach to safety, while it operates with a 100% fully vaccinated crew, 95% of whom have been boosted.” — Luisa Maria Jacinta C. Jocson

Filipinas open ASEAN women’s tournament against Matildas

July 4, 2022 | 12:05 am

Filipinas_PFFMVPSF — FILIPINAS training under the watchful eyes of Alen Stajcic. — PFF

HOST Philippines gets tested in the AFF Women’s Championship right away as it opens its campaign against Australia’s Under 23 (U23) team on Monday night at the Rizal Memorial Stadium.

The Filipinas take on the Australians, the 2008 winners, at 7 p.m., intent on making the most of their home field advantage and crowd support to get off to a winning start in Group A.

Also featured in Day 1 at Rizal is the Group A kickoff match between Singapore and Malaysia at 4 p.m.

The history-making Filipino booters are playing at home for the first time since clinching a ticket to the 2023 FIFA Women’s World Cup early this year and bagging the bronze in the Southeast Asian Games last May.

For Alen Stajcic’s charges, there’s no shortage of motivation to perform in the July 4-17 Association of Southeast Asian Nations (ASEAN) showpiece.

“We’ve been in the European subcontinent, Australia, and North America just in my seven months in the team. There’s a lot of leading and growth that has happened. We’re really looking forward to the next chapter and playing on home soil is something special,” said Mr. Stajcic.

“Since we’ve been playing all over, we really haven’t got that home field advantage. Everybody is excited for that. All the support will help us in the long tournament. Everybody is excited and honored to play in the Philippines,” said skipper Tahnai Annis.

The Filipinas, whose best finish was fourth in the 2019 edition in Thailand, are coming off a productive buildup in Slovenia, where they beat Bosnia and Herzegovina in a pair of friendlies, 3-0 and 2-1.

After the Matildas U23, the host squad battles Singapore (July 6), Malaysia (July 8), Indonesia (July 10), and four-time champion Thailand (July 12). The objective is to finish in the Top 2 of the group to advance to the knockout rounds.

The other group consists of defending champion Vietnam, 2019 bronze medalist Myanmar, Timor-Leste, Cambodia and Laos. — Olmin Leyba

SFA Semicon earnings down 20%

July 4, 2022 | 12:04 am

SFA Semicon Philippines Corp. (SSP) reported that its first-quarter net income attributable to parent equity holders went down by 20.2% to $3.19 million from $4 million despite higher revenues.

In the first quarter, revenues increased by 13.8% to $89.95 million from $79.06 million in 2021, driven by sales of card, blister, and module products.

“Based on the management’s assessment, the events surrounding the COVID-19 (coronavirus disease 2019) pandemic did not have a material impact on the financial position and performance of the company [in the first quarter],” the firm said in its quarterly report.

Last Thursday, the company announced that it approved the implementation of a share-buyback program of up to P130 million or nearly $2.5-million worth of common shares.

SSP is a global outsourced semiconductor assembly and test company whose facilities are located in the Philippines.

The company completed the second phase of its manufacturing and support facility with a production footprint of 15,000 square meters in 2018.

The facility augments the capacity of its first integrated manufacturing plant which serves as an exclusive outsourced semiconductor assembly and test facility for the assembly and test of DRAM memory modules, memory component chips, memory solutions and SD flash cards for its customers through SFA Semicon Co., Ltd. of South Korea, its parent company.

At the stock exchange on Friday, SSP shares ended lower by 3.33% or four centavos to close at P1.16. — Luisa Maria Jacinta C. Jocson

Buy a shirt to give peace a chance

July 4, 2022 | 12:04 am

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Uniqlo is donating all profits from new T-shirt line to support peace, children, refugees

WHEN we’re running away from real tragedy: riots, plagues, and wars, of which we have seen far too much in the last two years, fashion tends to take a backseat. In a press conference streamed from Japan on June 16, Japanese clothing giant Uniqlo makes a case for fashion taking a leading role in crisis.

Uniqlo released a line of T-shirts under the campaign “Peace for All.” These shirts have been designed with the collaboration of various luminaries from different fields. This list includes prominent urban planner and architect Tadao Ando, Samurai, Inc. Creative Director and CEO Kashiwa Sato, model and designer Ines de la Fressange, award-winning author Haruki Murakami, and 2012 Nobel Prize Winner for Physiology or Medicine Dr. Shinya Yamanaka.

Back in 2001, when the company first aided Afghan refugees with donations of clothes and other forms of assistance, the United Nations High Commissioner for Refugees (UNHCR) reported that there were 40 million refugees scattered around the world. “This number has doubled already,” said Koji Yanai, Group Senior Executive Officer at Uniqlo’s parent company Fast Retailing Co. Ltd., as he outlined the urgency of the project. According to him, the number of refugees around the world totalled 100 million last month, citing data from the UNHCR.

Mr. Yanai is the son of Fast Retailing’s Founder, Chair, President, and CEO Tadashi Yanai (Bloomberg’s Billionaires Index 2021 listed the senior Yanai as the 44^th richest person in the world, with an estimated fortune of $26.3 billion*).

“Many people are suffering from poverty, discrimination, conflict, and war. Of course, (in) the world, we are facing quite a significant challenge. There could be no other time for us to appreciate peace, and pray for it,” said Mr. Yanai through an interpreter in a speech.

The figures who helped design the shirts released statements where they discussed their vision. Mr. Murakami’s shirts have a drawing of a cat, and text that says: “save humans, save cats.” Mr. Murakami said, “I just wanted to be of some use (maybe not much, but still). I think it would be nice to create a world in which people, and cats, can live in peace.”

Mr. Yamanaka’s shirt has a stylized representation of DNA, and text that says, “Technologies progress. Humanity must progress. Science progresses. Humanity must progress.” He said, “I took part because I wanted to do something useful as an individual in addition to promoting research as a physician-scientist. The ability of science and technology to change the world for the better is entirely dependent on the people who use it. So, I added the message ‘Humanity must progress.’”

Ms. De la Fressange’s shirt shows a symbol of peace, the dove, spelling out the words “Peace for All” with a yellow background. “Today, designers and fashion brands must be generous and think firmly about the world and about humanity. I believe people will enjoy participating in this new and ongoing commitment and in expressing their views about peace in such a pacific way. Don’t you want to wear this T-shirt?,” she said.

Mr. Ando’s shirt displays a red drawing. “In today’s increasingly fragmented world, we need to reacquaint ourselves with the fact that we all live together on one single planet. That is why I have used this particular message. To achieve ‘The Earth is One,’ it is vital that each one of us thinks very carefully about what we, as individuals, can do for society,” he said.

Mr. Sato’s shirt, with the words “Peace for All” in black block letters repeated several times, was pretty straightforward. “I designed my T-shirt to convey the concept of peace, straight and simple. The repeated call for peace for all represents the feelings and voices of many people worldwide. It expresses a strong and heartfelt desire for a peaceful world.”

Other collaborations with other figures are forthcoming.

The shirts are available for P790 in Uniqlo stores in the country and online. According to a statement, 20% of the sales price will go to institutions including the UNHCR, Save the Children, and Plan International.

“This is going to be the first project that will donate all of the profits. That will be used for [solving] poverty, discrimination, violence, and conflict,” said Mr. Yanai in a speech.

“Clothing has a role to play in protecting people’s lives, as well as dignity.” — Joseph L. Garcia

*https://www.bloomberg.com/billionaires/profiles/tadashi-yanai/.

Rates of T-bills, bonds to climb

July 4, 2022 | 12:04 am

RATES of government securities on offer this week are expected to climb further as headline inflation likely hit a near four-year high in June, which may cause the Bangko Sentral ng Pilipinas (BSP) to hike borrowing costs more aggressively.

The Bureau of the Treasury (BTr) will offer P15 billion in Treasury bills (T-bills) on Monday, or P5 billion each in 91-, 182-, and 364-day debt papers.

On Tuesday, the BTr will auction off P35 billion in seven-year Treasury bonds (T-bonds) with a remaining life of three years and seven months.

Traders said that rates of the government debt on offer this week are expected to climb as the June consumer price index (CPI) is expected to have reached a fresh peak.

“Expecting upward bias still, especially with CPI data due on Tuesday, and most are expecting it to reach or even break 6%,” the first trader said.

The first trader said T-bill rates may increase by 10 basis points (bps), while the reissued seven-year bond could fetch yields between 5.625% and 6%.

Meanwhile, the second trader said the T-bills on offer this week could fetch rates 5-10 bps higher than those seen in the previous auction, while the seven-year bond could attract yields ranging from 5.6% to 5.9%.

“Market players will continue to ask for relatively higher yields compared to benchmark yields in the secondary market to price in a possible uptick in inflation which may cause BSP to be more hawkish than initially anticipated,” the second trader said.

The trader added that both offerings could attract “robust” demand as three-year papers worth P103.6 billion maturing this week will free up liquidity.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort also expects the government debt on offer this week to be quoted at yields as the market anticipates further tightening from the BSP.

“Weaker peso exchange rate could lead to higher import costs and overall inflation, thereby partly [justifying] local policy rate hikes going forward,” Mr. Ricafort said in a Viber message.

The Philippine Statistics Authority will release its June consumer price index report on Tuesday, July 5.

A BusinessWorld poll of 16 analysts last week yielded a median estimate of 6% for June inflation, within the 5.7-6.5% forecast given by the BSP last week.

If realized, this would be well above the BSP’s 2-4% target and 5% forecast for the year.

In May, headline inflation was at 5.4%, fueled by rising food and transport costs.

BSP Governor Felipe M. Medalla last week said the central bank may consider a more aggressive rate hike at its Aug. 18 meeting if inflation keeps its upward momentum, but noted the decision will remain data dependent.

Early in June, ahead of the US Federal Reserve’s decision to increase its own rates by 75 bps at its own meeting that month, Mr. Medalla said he is not keen on raising borrowing costs by more than 25 bps per meeting.

The BSP on June 23 raised benchmark interest rates by 25 bps for a second straight meeting to cool rising prices.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills were quoted at 1.7829%, 2.2109%, and 2.6057%, respectively, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, the seven-year bond fetched a yield of 5.5754%, while the four-year tenor, the benchmark closest to the remaining life of the bonds to be offered on Tuesday, was quoted at 5.5754%.

Last week, the BTr raised just P13.95 billion from its offer of T-bills, even as total bids reached P27.176 billion, nearly double the P15-billion offer.

Broken down, the Treasury raised P5 billion as programmed from its offer of 91-day securities as the tenor attracted P14.93 billion in bids. The average rate of the tenor climbed by 9.6 bps to 1.855 from the 1.759% fetched at the previous auction. Accepted rates ranged from 1.8% to 1.91%.

The BTr also made a full P5-billion award of the 364-day debt papers, with total tenders reaching P6.75 billion. The average rate of the one-year tenor climbed by 17.6 bps to 2.63% from the 2.454% seen previously, with the government accepting offers ranging from 2.45% to 2.874%.

Meanwhile, the government partially awarded its offer of the 182-day debt papers, raising just P3.95 billion versus the P5-billion program, even as bids reached P5.5 billion. The average rate of the six-month tenor jumped by 26.8 bps to 2.4% from 2.132%, with yields on the awarded bids at the 2.23-2.5% band.

On the other hand, the reissued seven-year papers to be offered on Tuesday were last auctioned off on Jan. 21, 2020, where the BTr made a partial award of P27.203 billion versus the P30-billion program. At that auction, the tenor fetched an average rate of 4.732%.

The Treasury wants to raise P200 billion from the domestic market in July, or P60 billion through T-bills and P140 billion via T-bonds.

The government borrows from local and external sources to help fund a budget deficit capped at 7.6% of gross domestic product this year. — Diego Gabriel C. Robles

EJ Obiena dominates the Jump and Fly in Germany

July 4, 2022 | 12:04 am

ASIAN pole-vaulter record-holder Ernest John “EJ” Obiena bounced back from a lethargic performance last time out by successfully defending the Jump and Fly in Hechingen, Germany on Sunday.

The 26-year-old Southeast Asian Games gold medalist cleared 5.80 meters to reign supreme in the annual event for the second straight year.

He bested China’s Huang Bokai and Germany’s Vincent Hobbie, who took the silver and bronze with a 5.50m and 5.10m, respectively.

While the triumph soothed the pain of a sixth-place finish in the Wanda Diamond League in Stockholm, Sweden on Friday, the recent performance was far from his career-high 5.93m he set in the Golden Roof Challenge in Innsbruck, Austria last year.

But Mr. Obiena gladly took the triumph as he hopes to bounce back from his disastrous effort in Stockholm.

The Tokyo Olympian also reigned supreme in this same meet held in Mossingen where he vaulted to 5.85m.

Next event for Mr. Obiena is the World Athletics Championships slated for July 15 to 24 in Eugene, Oregon in the United States. — Joey Villar

‘A small motor show every day’

July 4, 2022 | 12:04 am

VELO_Page1_image1 — Kia — PHOTO FROM AC MOTORS

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AC Motors Centrale showcases all affiliated brands under one roof

AS THE ECONOMY continues to open amid a hopefully receding pandemic, AC Motors doubles down as it recently opened AC Motors Centrale in Bonifacio Global City.

“Now, we can truly say, all roads lead to this one-of-a-kind venue in the center of one of the most coveted business addresses in the country. Indeed, no other place and time is fitting for this occasion. AC Industrials’ automobile and motorcycle distribution and retail businesses have been an integral part of the Ayala group for the last 30 years, enabling AC Motors to provide mobility solutions for the Filipino people,” said AC Industrials President and CEO Arthur “Art” Tan in his welcome speech at the venue. AC Motors is a “portfolio company of AC Industrials (ACI), Ayala Corp.’s holding and investment company for industrial technology, manufacturing, and vehicle distribution and retail interests.”

Rising on a 3,000-sq.m. sprawl at 932 28^th street corner 9^th Avenue, AC Motors Centrale showcases all the mobility brands overseen by, or associated with, the Ayala-led firm — namely Honda, Isuzu, Volkswagen, Kia, KTM, and Husqvarna. Another brand, Maxus, is conspicuously absent in deference to a nearby dealership.

Also speaking to attendees of the inauguration, AC Motors Automobile Group President Antonio “Toti” Zara III described the concept as a “small motor show every day” in the heart of the city. He expressed bullishness for the auto industry — noting that the sector has registered year-to-date growth of 11% versus the same period last year. Mr. Zara also reported that AC Motors has been “outpacing” the market average, while accounting for 4.8% of total industry sales across all its dealers and distributors. “It’s the best time to open Centrale,” he quipped.

Speaking to “Velocity” in an exclusive interview, the executive explained, “We will have our halo models and models of focus… the (displays) will always be changing.” The edifice is envisioned to showcase at least four vehicles per brand, and also houses the head office of AC Motors. Added Mr. Zara, “What sets AC Motors Centrale apart, aside from being able to house all our brands under a single roof, and giving customers the ability to choose the vehicle that best suits their needs from a wide range of models, is that we take this experience to the next level by offering AC Motors’ new used car program, AC Motors Trade+, which opens up a whole new world of enterprise and ownership opportunities for our customers.”

AC Motors Trade+ is clearly a calculated bid to realize an additional revenue stream for the company as well. The auction-based service — powered by the technology of established auto portal ZigWheels Philippines and the dealer market of second-hand car specialist Carmudi Philippines — streamlines the process of selling used cars for new buyers and existing owners into a “five-day turnaround time from inspection, to auction, and payment.” The facility is open to any brand of vehicle — even those outside the ambit of AC Motors.

In addition, AC Motors leverages the natural synergies it can access as part of the considerable girth of the Ayala Group. Aside from the AC Motors Fleet program, participants get to join the Ayala Rewards Circle and the Ayala Enterprise Circle for small and medium enterprises and large corporations.

This all stitches onto the bigger picture of seamless digitization that AC Motors is further building on as “one of the most digitized dealer networks.” The company has revealed that as much as 45% of current sales have been completed through its many online portals — providing a transparent, efficient experience for customers. All the brands featured in AC Motors Centrale have their own comfortable place in the facility’s footprint — with each niche executed and styled in consonance with the most current corporate image.

Also, it’s pretty apparent to the company that the future will not only be digital, but increasingly electric. Declared Mr. Tan, “AC Industrials is fully committed to support AC Motors as it plays a pivotal role entering the next stage of mobility — electrification. This venue will become a part of our sustainable electric vehicle ecosystem, allowing our customers to comfortably enjoy the EV (electric vehicle) models which we will soon be introducing.”

Among AC Motors’ own brands, Volkswagen and Kia in particular have been making a lot of noise in the EV space, and have been globally rolling out relevant models in this genre. Mr. Zara told “Velocity” that we can expect electric vehicles from AC Motors “maybe sooner than everyone expects.”

“The volume would not be much,” he clarified. “But we need to start somewhere, right? And Ayala is not only about electrification in mobility. The group has committed to being net-zero carbon by 2050. And how can we in AC Motors not contribute to this?”

The executive expressed excitement over Republic Act 11697 or the Electric Vehicle Industry Development Act (EVIDA) which lapsed into law last April. As reported in a BusinessWorld article by Bjorn Biel M. Beltran, the law “outlines the regulatory framework for the manufacturing and adoption of EVs, and includes quotas for their adoption by various industries such as cargo logistics, food delivery companies, tour agencies, and utilities providers.” This thus gives a significant push and impetus for more to go electric.

“Government is obviously moving toward promoting electrification… I would think we are ready. The pain had always been about range, but range of vehicles are becoming greater,” stated Mr. Zara. “We are also working with our chairman and CEO Art (Tan), who is working (with companies on charging stations).”

And, for sure, once these electric vehicles of AC Motors-distributed brands arrive, they will most likely be launched and on display at AC Motors Centrale.

It is, as that movie line goes, inevitable.

Analysts’ June 2022 inflation rate estimates

July 4, 2022 | 12:03 am

PHILIPPINE INFLATION probably hit 6% in June amid spiraling oil and food prices and higher electricity rates, according to a median estimate of 16 analysts in a BusinessWorld poll last week, boosting the case for bigger increases in key interest rates. Read the full story.

India’s monsoon rains cover entire country but are weaker

July 4, 2022 | 12:03 am

NEW DELHI — India’s annual monsoon covered the entire country on Saturday, six days earlier than usual, the state-run weather office said, but rain totals are 5% below average so far this season.

The monsoon, critical for farm output and economic growth in the world’s second-most populous country, arrived on the coast of the southern Kerala state on May 29, a couple of days ahead of usual, yet after a promising start the rains gradually tapered off, clocking an 8% deficit in June.

Last month’s patchy rains slowed the planting of rice, an essential summer crop.

India’s rice farmers have planted 4.3 million hectares with the grain so far this season, down 27% from the same period last year.

The progress of the monsoon, which delivers about 70% of the country’s annual rainfall, is crucial for rice output and exports from India, the world’s biggest exporter of the grain.

Poor monsoon rains would further delay rice planting, stunt the crop and cut yields, leading to a drawdown in state inventories that would trigger export curbs to ensure sufficient supplies for the country’s 1.4 billion people.

India is likely to receive monsoon rainfall between 94% and 106% of the long-term average in July, the most crucial month for planting rice and a host of other summer crops such as corn, cotton, soybean and sugarcane, the India Meteorological Department had said on Friday.

The weather office defines average, or normal, rainfall as between 96% and 104% of a 50-year average of 87 cm (35 inches) for the entire four-month season beginning in June. Rain totals or between 90% and 96% are considered below average.

Bountiful monsoon rains in July would ease concerns about the output of summer crops, promising higher incomes in the countryside where most Indians live. As almost half of the country’s farmland lacks irrigation, Indian farmers depend on the monsoon.

The farm sector employs more than half of the country’s population and accounts for nearly 15% of India’s $2.7 trillion economy, Asia’s third-biggest. — Reuters

Peso may rebound vs dollar as expectations of faster inflation fuel BSP bets

July 4, 2022 | 12:03 am

THE PESO may rebound versus the greenback this week on bets of more aggressive tightening by the Bangko Sentral ng Pilipinas (BSP) as headline inflation likely hit an over three-year high in June.

The local unit closed at P55.09 per dollar on Friday, losing 11.5 centavos from its P54.975 finish on Thursday, based on Bankers Association of the Philippines data.

This is the peso’s worst finish in more than 16 years, or since it closed at P55.26 a dollar on Oct. 25, 2005.

The local unit also weakened by 10.5 centavos from its P54.985 close a week earlier.

The peso declined anew on Friday amid recession concerns due to the US Federal Reserve’s hawkish stance, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The Fed last month hiked benchmark rates by 75 basis points (bps) to temper rising prices. Markets are pricing in another 75-bp hike at the US central bank’s July meeting as several Fed officials have said they would support more aggressive hikes.

Fed Chair Jerome H. Powell told a US Congress hearing late last month that the US central bank is committed to bringing down inflation despite risks of a downturn, but said it is not trying to engineer a recession.

Weak data on foreign portfolio investments also caused the peso to decline, Mr. Ricafort said.

Foreign portfolio investments, also called “hot money” because of the ease by which these funds enter and leave an economy, yielded a net outflow of $270.42 million in May from the $1.36-billion net inflow seen the previous month, BSP data released on Friday showed.

For the first five months, net hot money inflows reached $1.07 billion, a turnaround from the $420.7-million net outflow seen in the same period last year. The BSP expects foreign portfolio investments to yield a net inflow of $4.5 billion for 2022.

For this week, expectations of an aggressive hike from the BSP at its meeting next month as headline inflation likely quickened further in June could provide support for the peso, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

BSP Governor Felipe M. Medalla last week said the central bank may consider a more aggressive rate hike at its Aug. 18 meeting if inflation keeps its upward momentum, but noted the decision will remain data dependent.

Early in June, ahead of the Fed’s decision to increase its rates by 75 bps at its own meeting that month, Mr. Medalla said he is not keen on raising borrowing costs by more than 25 bps per meeting.

The BSP on June 23 raised benchmark interest rates by 25 bps for a second straight meeting to cool rising prices. At that meeting, it raised its average inflation forecast for this year to 5% from 4.6% previously, well above its 2-4% target.

A BusinessWorld poll of 16 analysts last week yielded a median estimate of 6% for June inflation, within the 5.7-6.5% forecast given by the BSP last week.

If realized, this would be well above the BSP’s 2-4% target and 5% projection for the year.

In May, headline inflation was at 5.4%, fueled by rising food and transport costs.

The Philippine Statistics Authority will release its June consumer price index report on Tuesday, July 5.

Mr. Asuncion added that mixed data from out of the United States last week could also prop up the peso.

Disposable income inched lower, consumer spending decelerated, inflation remained hot and jobless claims inched higher, Reuters reported.

Consumer spending, which accounts for more than two-thirds of US economic activity, gained 0.2% in May, the smallest rise in five months.

Meanwhile, the personal consumption expenditures (PCE) price index rose by 0.6% last month after gaining 0.2% in April. In the 12 months through May, the PCE price index climbed by 6.3% after a similar gain in April. It was driven by higher prices for goods and services.

Excluding the volatile food and energy components, the PCE price index rose by 0.3% for the fourth straight month. The core PCE price index advanced 4.7% on a year-on-year basis in May, the smallest increase since last November, after rising by 4.9% in April.

The PCE price indexes are the Fed’s favored measures for its 2% inflation target.

For this week, Mr. Asuncion expects the peso to trade from P54.70 to P55.20 per dollar, while RCBC’s Mr. Ricafort gave a forecast range of P54.70 to P55.25. — K.B. Ta-asan with Reuters

CTA grants property leasing firm’s tax refund claim

July 4, 2022 | 12:03 am

THE Court of Tax Appeals (CTA) has granted the appeal of Basic Housing Solutions, Inc. to cancel and set aside its income tax liabilities for the year 2014 worth P21.41 million inclusive of interest.

In a 17-page decision on June 28 and made public on July 1, the CTA Special Second Division prohibited the commissioner of internal revenue (CIR) from collecting the company’s 2014 tax assessment.

“In this case, no letter of authority (LoA) was issued for the examination of petitioner’s (Basic Housing Solutions) books of accounts and other accounting records,” according to the ruling penned by CTA Associate Justice Marie A. Bacorro-Villena.

The petitioner is a domestic corporation engaged in the business of improving, developing, and leasing real estate properties.

The court noted that only a memorandum of the assignment (MoA) was issued by a revenue district officer to conduct an audit of the company’s books of accounting, which is not a valid substitute for an LoA.

It added that the MoA only gave notice and was not signed or issued by the CIR, which does not grant the assigned revenue officers authority to conduct the audit.

“However, a notice of the fact of reassignment and transfer of cases is one thing; proof of the existence of authority to conduct an examination and assessment is, another thing,” the court said, citing prior jurisprudence.

It ruled that the revenue officers assigned were not authorized to conduct the audit based on the absence of the LoA.

Under the country’s revenue code, only the CIR or his duly authorized representative may authorize an examination of a taxpayer’s tax liabilities. Revenue officers can only perform audits and assessments through a letter of authority issued by the CIR.

The CIR represented by Batangas Regional Director Maridur V. Rosario argued that the tax assessments were presumed correct and made in good faith and that the taxpayer has to prove otherwise.

“Well-entrenched are the principles that in the absence of such an authority, the assessment or examination is a nullity and a void assessment bears no fruit,” the tax court said.

“With the foregoing disquisition, due to the invalidity of the assessment against the petitioner, the court finds it unnecessary to tackle the other issues raised as their resolution could no longer change the outcome of the case.” — John Victor D. Ordoñez

Beauty from the Grecian Isles

July 4, 2022 | 12:03 am

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A GREEK skincare brand which arrived in the Philippines during the pandemic distills the power of nature and gives back to it — with the help of actress Nadine Lustre.

During an event in Makati on June 22, Bioten, a brand owned by Greek-headquartered Gr Sarantis SA (otherwise known as the Sarantis Group), showed off its lines, Bioten Skin Glow and Bioten Vitamin C.

Bioten Skin Glow consists of mousse cleanser (P299), a toner (P299), a serum (P799), a day cream (P699), and a night cream (P699). Skin Glow is made with 10 ingredients believed to brighten skin: niacinamide, Centella asiatica, Camelia japonica, matsutake mushroom, mulberry, paper mulberry, green tea, apple fruit, Rhus semialata extracts, and glucosamine. These are enhanced with Vitamin B3, well-known for strengthening the skin barrier and improving skin tone, as well as Vitamin C, a powerful antioxidant that helps decrease hyperpigmentation. It also has hyaluronic acid, Vitamin E, Pro-vitamin B5, and glycerin.

Bioten’s Vitamin C line’s star is in its name. This line consists of a day cream (P699) and a night cream (P699), both with 100% natural orange and lime extracts. Five percent of the anti-aging ampoules from the same line (P799) are composed of Vitamin C and a brightening amino acid. Each product has 90% ingredients of natural origin.

Vitamin C doesn’t always get its accolades in the skincare world. Loved by many for its brightening properties, it comes with the price of staying out of the sun because of the risk of skin photosensitivity. In an interview with BusinessWorld, Kelly Erripi, Head of Skincare Category – Group Marketing Division of Gr Sarantis SA said that we can stay in the sun despite being slathered with Vitamin C — depending on the type.

“This is the trick. Most Vitamin Cs are very economic. When you have this economic active ingredient, it causes oxidation in the formula. This oxidation is creating all this photosensitivity on your skin.” Ms. Erripi describes the Vitamin C that they use in their products as “stable” and of high quality. “This means it is encapsulated and does not oxidize in the formula. It gives you the chance to use it in the daylight, during summer. No patches, no dark spots created from the Vitamin C.”

On another note, the company is proud to have a minimum of 88% of naturally-derived products in each bottle (the bottles themselves are made from about 30% recycled glass, and are recyclable). “We as a brand have sustainable ingredients. We have very high naturality in our formulas. You will find more than 88% in every product,” said Ms. Erripi. “We don’t have so many chemicals in (it). [Although] we need to have some chemicals to make the formula stable.”

Since customers are becoming more discerning in their skincare choices, some question whether “natural” products always mean that they’re better.

She says, “Listen: naturals have been accused of being either not very well-performing or being a bit aggressive to your skin. What we are doing, we’re trying to balance things… they are taking the actual power of the active (ingredient). This is joining nature with technology.”

Eighty-eight, a number mentioned above, is important to the company — so much so that they have launched an environmental campaign in the Philippines centered on it.

With their Philippine distributor iFace, Inc., it has launched The Green and Honest by the Numbers campaign, which aims to raise funds to plant 88,000 trees to aid the 20-year reforestation project for the Aetas of Yangil, Zambales through For The Future and Make a Difference (MAD) Travel. The project aims to cultivate 3,000 hectares of Aeta ancestral domain.

Bioten’s brand ambassador in the Philippines, actress Nadine Lustre, made an incognito visit to the community in Yangil last April. “It doesn’t feel so genuine if I push for an advocacy that I’m not immersed in,” said the Gawad Urian Best Actress awardee (for starring in the film Never Not Love You). “To know that there are people who are willing to help without anything in return — nakakataba ng puso (it makes my heart swell).”

“I could just feel all the love in the area, and everyone loving each other,” she said.

In every country that Bioten enters, they create either social or environmental projects as part of their CSR efforts. As mentioned above, they also use sustainable materials and ingredients. Ms. Erripi talked about its significance within the company. “It’s important for us as a development team because what we wanted to do is something that we would also use and will also (pass on) to our children.”

“This is the good stuff.”

Bioten Skin Glow and Bioten Vitamin C are available at Watsons, The SM Store, and online on Amorfia and Lazada.

Each seedling for the The Green and Honest by the Numbers Campaign costs P50. To donate to the cause through Nadine Lustre visit https://donation.ph/FTF-88k. To learn more about the project, visit https://www.forthefutureph.com/88k-trees. — JL Garcia