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Quasi-banks’ NPL ratio down as of December

BW FILE PHOTO

BAD DEBT held by the quasi-banking industry dropped as of end-December, central bank data showed.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed the nonperforming loan (NPL) ratio of nonbanks with quasi-banking functions stood at 9.9% as of end-December, lower than the 10.3% seen as of end-September.

However, it was still higher than the 9.6% ratio in December 2020.

Financial institutions with quasi-banking functions include financing companies and investment houses.

NPLs held by quasi-banks amounted to P14.081 billion as of end-December last year, up 4.1% from the P13.523 billion a year earlier and down by 2.9% from the P14.501 billion as of end-September.

The downtrend in the share of NPLs in total loans of quasi-banks was similar to the ratio for the entire banking industry, which reached an 11-month low of 3.99% as of end-December.

Meanwhile, the gross loan portfolio of the quasi-banking industry inched up by 0.7% to P141.976 billion as of end-December from P140.948 billion a year earlier.

Their nonperforming assets, which include real and other properties acquired, rose by 2.9% year on year to P15.432 billion from P15 billion.

The industry’s restructured loans also increased by 67% to P2.106 billion from P1.26 billion. This was at 1.5% of their entire loan book from 0.9% a year earlier.

As of end-December, the NPL coverage of the quasi-banking industry stood at 40.1%, while covered nonperforming assets was equivalent to 37.7%. Both improved from the 32.8% and the 30.9% seen a year earlier.

Quasi-banks continued to ramp up their loan loss reserves, which increased by 27.5% to P5.646 billion from P4.43 billion. This is equivalent to 4% of their loan portfolio from 3.1% a year earlier. — L.W.T. Noble

Disney launches new level of immersion in Star Wars experience

DISNEYWORLD.DISNEY.GO.COM

ORLANDO, Fla. — Walt Disney Co.’s newest theme park offering aims to make fans forget they are in Florida and instead feel like they are vacationing in luxury in a galaxy far, far away.

The two-night Star Wars: Galactic Starcruiser experience, opening Tuesday at Walt Disney World in Orlando, puts guests into a story set on the Halcyon, a sleek space vessel said to be the place where Princess Leia and Han Solo took their honeymoon.

Disney’s designers hope visitors embrace the chance to play a role in the fictional world created by George Lucas. Guests on the Halcyon can interact with space droids, or Han’s hairy sidekick Chewbacca, and meet new characters.

Crew members will offer training in how to handle a lightsaber or battle incoming threats from the ship’s bridge. Star Wars costumes are encouraged.

“We are trying to make it safe and fun to play Star Wars,” said Scott Trowbridge, portfolio creative executive at Walt Disney Imagineering.

The first-of-its-kind adventure is pricey, starting at $4,809 for two guests. That includes two days and two nights in one of 100 Starcruiser cabins, galactic-inspired food and drink, and a visit to Batuu, the Star Wars planet inside the Disney World theme park.

Designers said the Starcruiser experience takes elements from gaming, theater, storytelling and hospitality. Matt Martin, senior creative executive in the Lucasfilm Story Group, called it “immersive theater meets a cruise.”

The company did not disclose what it spent to build the experience, which was in development for more than six years. But executives said they adhered to Disney’s famous attention to detail and aimed to create a high-tech, luxury experience.

The Starcruiser is adjacent to Walt Disney World’s Galaxy’s Edge, one of two Star Wars areas that cost more than $1 billion to create. — Reuters

Torres-Sunang rules long jump at the PATAFA athletics event

THE 41-YEAR-OLD Ms. Torres-Sunang overcame the windy condition in registering 6.11 meters in claiming the gold. — FEU.EDU.PH

VETERAN Marestella Torres-Sunang bolstered her hope of competing in the Southeast Asian (SEA) Games possibly one final time after she topped the Milo-PATAFA (Philippine Athletics Track and Field Association) Performance and Time Trials at the Imus Sports Complex on Sunday.

The 41-year-old Ms. Sunang, a former Asian champion and four-time SEA Games gold medalist, overcame the windy condition in registering 6.11 meters in claiming the gold.

It was a big leap from her 6.06m effort in the Ayala Philippine Athletics Championships in December last year in Baguio that was only good for a silver behind Katherine Khay Santos, who snatched the mint via count back.

“I’m happy with my jump. I had a good fitness and conditioning also,” said Ms. Sunang, who turned a leaf last Feb. 20.

While she fell short of the SEA Games bronze medal standard of 6.16m, Ms. Sunang is optimistic she can make the cut in time for Hanoi where she hopes to come through with a podium finish in what could be her last hurrah in the SEA Games.

“We can pull her (Ms. Sunang) so she can be jumping between 6.20 to 6.30 that would boost her chances of a podium finish,” said national team coach Joebert Delicano.

Southeast Asian Games relay bronze medalists Frederick Ramirez and Jessel Lumapas ruled the men’s and women’s 400m in 47.42 and 57.31 seconds, respectively, in this three-day meet backed by Lily’s Peanut Butter and Philippine Sports Commission.

Other winners were Clint Neri (men’s long jump), Edwin Giron, Jr. (men ‘s 800m), Bernalyn Bejoy (women’s 800m), and James Orduna (men’s 5,000m). — Joey Villar

Peso may weaken on inflation data

BW FILE PHOTO

THE PESO may continue to weaken versus the greenback this week amid expectations of faster inflation in February.

The local unit finished trading at P51.34 per dollar on Thursday, shedding 24 centavos from its P51.10 close on Wednesday, Bankers Association of the Philippines data showed.

It moved sideways from its P51.35 finish on Feb. 18.

Philippine financial markets were closed on Friday, Feb. 25 for a special non-working day in commemoration of the People Power Revolution anniversary.

Geopolitical tensions, which eventually led to a Russian invasion in Ukraine, were the major cause of uncertainty for global markets last week, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

Russian forces invaded in Ukraine on Thursday following an announcement by President Vladimir Putin. Western powers, including the US, European Union and the UK, immediately imposed economic sanctions on Russia in light of their actions, Reuters reported.

The unfolding events in Eastern Europe and their impact on oil prices also affected the peso, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Global crude prices surged on Thursday, with Brent surpassing $100 a barrel for the first time since 2014. This was following Russia’s invasion of Ukraine, which caused worries about supply disruptions.

For this week, Mr. Asuncion said the market will be looking out for the February inflation outturn.

A BusinessWorld poll of 15 analysts yielded a median estimate of 3.3% for the February inflation as they cited the impact of higher global oil prices to domestic inflation. If realized, inflation will still be within the 2-4% target range by the central bank but faster than the 3% in January.

The Philippine Statistics Authority will release the February consumer price index report on Friday, March 4.

Oil price movements will also be factored in by market participants in this week’s trading, Mr. Ricafort said.

“It is interesting to note that global oil prices already eased back to $90 levels, which are right before the Russia attacks/invasion of Ukraine,” he said.

Oil prices declined on Friday with April Brent crude futures down by 1.2% to $97.93 per barrel after reaching a high of $101.99, while the US West Texas Intermediate crude dropped $1.22 or 1.3% to $91.59 per barrel following a high of $95.64.

For this week, Mr. Ricafort gave a forecast range of P51.15 to P51.50, while Mr. Asuncion expects the local unit to move within P51.20 to P51.50 a dollar. — Luz Wendy T. Noble with Reuters

War in world’s breadbasket leaves big buyers hunting for grain

REUTERS

RUSSIA’S invasion of Ukraine is threatening shockwaves through two of the world’s staple grain markets, prompting countries that rely on imports from the region to seek alternative supplies and heightening concerns about food inflation and hunger.

Grain exports from Russia will probably be on hold for at least the next couple of weeks, the local association said on Friday, after turmoil erupted in the Black Sea. Ukrainian ports have been closed since Thursday.

That means the war has temporarily cut off a breadbasket that accounts for more than a quarter of global wheat trade and nearly a fifth of corn. Major importers are already looking at their options to buy from elsewhere, and prices for both grains swung wildly in the past two days. 

The disruptions come at a time when global crop prices have already soared to records, while hunger has surged dramatically in the past two years.

“There will be a big impact with respect to wheat prices and prices of bread for ordinary people,” World Trade Organization Director-General Ngozi Okonjo-Iweala said on Friday.

Russia and Ukraine supply crops to a long list of countries around the world, including large volumes to buyers in the Middle East and Africa, who will have to look elsewhere and probably pay more for both the grain itself and the cost of shipping. Egypt, the top wheat importer, had scheduled a tender on Thursday but canceled it after only receiving one offer — of French wheat.

“It is difficult to plan any transactions at the moment,” said Eduard Zernin, the head of the Russian Union of Grain Exporters. “I think it might take a couple of weeks.”

Demand is beginning to shift to alternative export origins including India and the European Union, according to two people familiar with the matter.

In Tunisia, the agriculture ministry said it’s looking to Uruguay, Bulgaria and Romania for supplies of soft wheat to shield itself from possible supply disruptions, while Indonesian flour mills are also hunting for other origins due to the escalating crisis. A Moroccan millers group said it would turn to Argentina, France and Poland, according to chairman Abdelkader El-Alaoui.

However, the outsized role that the Black Sea plays in global grains markets means that alternatives may be limited. Global grain stockpiles are already declining, making it more difficult to offset lost supply.

“It really does put a squeeze on an already tight market and creates a huge amount of uncertainty for the coming weeks if not months,” said James Bolesworth, managing director at UK-based CRM AgriCommodities. “For wheat and corn, it pushes demand to other parts of the world where we know stocks are tight.”

In the US, the war in Ukraine may have a modest impact on food costs, though grocery inflation is likely to ease this year regardless of the conflict, said Joseph Glauber, former chief economist for the US Department of Agriculture (USDA). The crisis may have a more severe impact on food prices in the Middle East and Africa, especially if spring planting is disrupted in Ukraine, he said.

The impact on US consumers will be muted because food commodities account for only a small portion of the price Americans pay for groceries — less than 15 cents of each dollar spent, according to USDA. Volatility in global wheat markets has little impact on the supermarket cost of a loaf of bread or a box of cereal.

Where the US will likely be more affected is in the cost of grains such as corn and soybeans used to feed livestock and poultry. It could exacerbate the pressures meat producers are already feeling, with drought in the US plains accelerating the decline of herds.

For Russian grains, in addition to the challenges of shipping in the Black Sea, some of the country’s biggest wheat exporters have links to state-owned bank VTB Group, which is now under sanctions from the US.

Overall, the war is likely to have far-reaching effects, the World Food Programme said.

“The food security impact of the conflict will likely be felt beyond Ukraine’s border, especially on the poorest of the poor,” the Rome-based agency said in a statement. “Interruption to the flow of grain out of the Black Sea region will increase prices and add further fuel to food inflation.” — Bloomberg

Iligan Light and Power seeks nod for P142-M projects

ILIGAN Light and Power, Inc. has asked the Energy Regulatory Commission (ERC) to approve its proposed electric and non-electric projects “to address load growth.”

“[The company has] several electric and non-electric capital projects planned which are necessary to maintain the reliable and safe operation of its distribution network as well as to provide for the growing electricity demand in the franchise area,” Iligan Light said in its application filed with the regulator on Feb. 14.

In its filing, Iligan Light also submitted the breakdown of its proposed projects totaling to P142.4 million.

The biggest chunk of the budget, which is P39.48 million, will go to the construction of its Tubon 20/30 mega volt ampere (MVA) substation, a project carried over from its 2021 regulatory year and will be continued this year.

Iligan Light will also spend P23.64 million for line construction projects and P11.96 million to buy poles.

The projects, which are mostly covering improvement on safety, capacity, vehicles, and electrification, were from 2015 until 2021. If granted approval, Iligan Light can start the construction, implementation, ownership, or operations of the projects.

“The proposed electric and non-electric capital projects will not have a direct impact on the current rates of [Iligan Light] until approved by the Honorable Commission as part of [its] Regulatory Asset Base in its next regulatory reset application under performance-based regulation,” the company said.

Iligan Light is among the largest private utilities in the country, covering Iligan City, Lanao del Norte province in Mindanao. — Marielle C. Lucenio

Autohub Group turns 23, opens YouTube channel

IMAGE FROM AUTOHUB GROUP

THE AUTOHUB GROUP marked its 23rd year by opening its own YouTube channel last week. The automotive conglomerate — which houses 22 multinational brands, operates over 65 dealer branches, and employs over 2,000 people across the country — is inviting the public to visit its channel (https://www.youtube.com/watch?v=1OKeRwbc6F8).

“Please don’t forget to click Like and Subscribe,” said Autohub Executive Assistant to the Chief Executive Officer Wayne Tee Ten, who is directly involved with the project. He invited the public to stay tuned for regular updates and news on Autohub’s extensive network of well-known automotive brands, which includes Rolls-Royce, Lotus, Mini, Ford, Mitsubishi, Suzuki, Geely, Fuso, MG, Nissan, Hyundai, Piaggio Ape, Vespa, Shelby, and Triumph.

In a release, the Autohub Group maintained that it “continues to reinvent (its) journey, empower alliances, and forge new partnerships with the core goal of providing only the excellent experience for all stakeholders as well as clients.” The Autohub Group YouTube channel will serve up the “latest reviews, reveals, exclusives, and updates” on its aforementioned network of flagship brands and models.

“Aside from the breakthrough Autohub app, the first-ever one-stop Autohub Showroom and the reinvigoration of the Autohub Institute of Technology (AIT) that were earlier initiated, bigger things are about to unfold for this year for the brand and its distributorship stable,” concluded the release.

Style (02/28/22)

Samsung and Aranaz collaborate on a bag

SAMSUNG has partnered with Aranaz, one of the leading Filipino handbag brands, for a special version of Aranaz’ best-selling signature style, the Mini Charlie Bag, inspired by the hues and compact design of the Galaxy Z Flip3 5G. The Charlie Mini Cube Bag in Lilac and the Charlie Mini Handbag in Green are priced at P6,500. Starting Feb. 28, Aranaz will launch the collection in its stores in Powerplant Mall, SM Aura, Greenbelt 5, and Rustan’s Makati. The Galaxy Z Flip3 5G is available on Samsung.com, Samsung Experience Stores and Authorized stores, Lazada, Shopee, Abenson.com, and MemoXpress Online. The flip phone is priced at P52,990 for the 128GB variant and P56,990 for the 256GB variant in Cream, Green, Lavender, and Phantom Black colorways. To find the nearest Samsung Experience Store, visit samsung.com/ph/samsung-experience-store/locations.

Havaianas collaborates with Oreo

HAVAIANAS and Oreo have collaborated on a unique, limited capsule collection. Havaianas and Oreo, a brand that belongs to Mondelēz International, have come up with the Havaianas + Oreo TOP flip-flops (P1,399) which, in addition to having a chocolate scent on its straps, features a fun print — all that on a sole that mimics the layers of an Oreo biscuit. The line of products includes an Oreo-shaped earphone case (P599), and socks with the iconic biscuit printed on them (P699). The limited collection is now available until supplies last, at select Havaianas, and All Flip Flop stores, and online on the Havaianas Philippines e-commerce site (https://havaianas.ph).

Women’s Month sales at Robinsons

Robinsons Malls celebrate Womens Month with sales: a Women’s Fair on March 4 to 31, and a 3.3 Sale on March 3-6. Exclusive deals will also be offered throughout the month.

Century City Mall marks an early summer

FROM Feb. 28 to March 6, Century City Mall kicks off an early summer celebration with hot deals, cool beats, and refreshing offers to shoppers and mallgoers. Retail tenants will be offering special discounts, promos, and other deals with up to 70% off. On Feb. 28, the Dining Park at the Skyloft (Level 4) will be officially launched. The Skyloft has been transformed into an al fresco dining space where customers can safely dine with their take-out. To make it more convenient for mall visitors, participating F&B tenants can provide delivery service to the Dining Park. Customers can order at their chosen restaurant then have it delivered to Level 4. Customers can also head straight to the Dining Park and check out some of the select F&B merchants that will set up booths in the area. Meanwhile, Sounds of Summer at Century City Mall will showcase live acoustic sessions at the Dining Park from 4:30 p.m. to 6:30 p.m. from Feb. 28 to March 6. For more information and to stay updated, follow Century City Mall on Facebook: https://www.facebook.com/CenturyCityMallPH and Instagram: Instagram.com/centurymallph. Century City Mall is located at Century City, Kalayaan Avenue corner Salamanca Street, Makati City.

The Beauty Source welcomes Women’s Month

RUSTAN’S The Beauty Source’s (RTBS) annual Women’s Month celebration kicks off with a new theme that calls for being unapologetically bold and confident because the future belongs to those who dare to use their femininity to make a difference. Rustan’s Beauty Addict #GRLPWR Generation You Facebook Live event will be held on March 4, 4 p.m. The roster of speakers includes host Issa Litton and panel speakers Yanna Cowper, Happy Ongpauco, Audrey Zubiri, and Daphne Paez. The celebration also continues at the “Beauty Live” event hosted by Laura Lehmann. The broadcast will commence via Instagram Live @iamlauralehmann on March 11 at 5 p.m. The special guests share their inspiring stories and their favorite beauty products that help boost their confidence from CHANEL, Maison Francis Kurkdjian, La Prairie, Tom Ford, Jo Malone, Kilian, Calvin Klein, NARS, Laura Mercier, Shiseido, and many more. Participants in the two events will have the chance to win special giveaways and raffle prizes from participating RTBS beauty and fashion brands. Meanwhile, the month of March is packed with special gifts and exclusive offers. On March 4, take advantage of one-day promos running from midnight to 11:59 p.m. All shoppers can enjoy big discounts from L’Occitane, Acca Kappa, Diptyque, Deborah Lippmann, Baylis & Harding, Stila, Murad, Mario Badescu, Perricone, Clarins, Murad, and many more. From March 5 to 15, all shoppers can enjoy special discounts and gifts from Phyto, Palmer’s, RMS Beauty, Jane Iredale, Koh Gen Do, Sisley, Nuxe, Anastasia Beverly Hills, Neal’s Yard Remedies, and many more. Finally, March 11 to March 13 features the exclusive Girl Talk promo wherein shoppers can use the code GRLPWR500 to avail P500 off with a minimum purchase of P10,000. All these special offers are available in Rustan’s stores, Personal Shopper On Call, and rustans.com. Beauty Addict members are in for back-to-back treats on March 4. For every purchase of P15,000 at Rustan’s The Beauty Source, the member will receive a Kanya Bea Knot Bag. Kanya is a homegrown sustainable brand of woven accessories inspired by nature. Additionally, members get P1,000 Rustan’s Beauty Vouchers when they spend a minimum of P30,000. They can earn x10 Beauty Addict points for all purchases made on March 4. Become a Beauty Addict member for any purchase at Rustan’s The Beauty Source with no minimum amount required. Download the Beauty Addict mobile app on the same day and receive +50 bonus points. Earn x5 Beauty Addict points for all purchases made within March 5 to 15. Those who will apply for the membership until March 15 will also receive a complimentary Eco Tote and +50 bonus points upon signup. All Beauty Addict promos are applicable in Rustan’s stores and through Personal Shopper on Call.

Barreto tops 100m, 800m freestyle of national open

MIGUEL Barreto splashed his way to a pair of golden performances at the conclusion of the 2022 Philippine Swimming, Inc. National Open. — PHILIPPINE STAR/ JOEY MENDOZA

MIGUEL Barreto splashed his way to a pair of golden performances at the conclusion of the 2022 Philippine Swimming, Inc. National Open at the Teofilo Yldefonso Swimming Complex, formerly Rizal Memorial Pool Center on Sunday.

Representing Ayala Harpoons Swim Club, Mr. Barreto took the men’s 800-meter freestyle gold in eight minutes and 52.01 seconds as well as in the 100m freestyle where he timed in 53.03 seconds, which was her best time in the event.

“Thankfully, I had the best time because out of my five events, that was my best swim,” said Mr. Barreto referring to the 100m.

Pierre Chan and Jordan Lobos likewise made their presence felt by topping the 50m backstroke in 26.91 and 200m breaststroke in 2:21.77, respectively.

Jass Mojdeh, 16, edged Chloe Daos in ruling the women’s 200m butterfly in 2:19.90 while Mervien Mirandilla pocketed the gold in the 200m fly in the men’s 2:11.18.

Xiandi Chua, a SEA Games silver and bronze medalist, struck gold in the women’s 100m while Hannah Sanchez was triumphant in the women’s 800m free in 9:58.65.

All-Star Swim Club annexed two races with Hannah Sanchez and Xiandi Chua taking the women’s 800m freestyle in 9:58.65 and the women’s 100m freestyle in 59.26 seconds, respectively. — Joey Villar

Shares to drop further on Russia-Ukraine crisis

BW FILE PHOTO

PHILIPPINE shares could continue to slide as Ukraine declared a state of emergency after Russia’s advance into the state, dampening investor sentiment across the globe.

The bellwether Philippine Stock Exchange index (PSEi) went down by 151.98 points or 2.06% to close at 7,212.23 on Thursday, while the broader all shares index fell by 75.01 points or 1.91% to 3,842.85.

Week on week, the PSEi fell by 206.56 points from its finish of 7,418.79 on Feb 18.

Philippine financial markets were closed on Friday in commemoration of the People Power Revolution anniversary.

“The market was heavily downed after [Russian President Vladimir] Putin ordered military operations for the invasion of Ukraine. This will further heighten market volatility that may further aggravate… global inflation with further disruptions in oil and other supplies,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.

“The deployment of Russian forces in Ukraine dragged down investor sentiment across all assets, with Philippine shares included,” AAA Southeast Equities, Inc. President William M. Cabangon said in a Viber message. “We await the response of the Western powers to the situation.”

Mr. Cabangon added that the non-working holiday on Friday incentivized many to sell their holdings as there was a real risk that the situation would worsen over the long weekend.

On Saturday, Ukrainian leader Volodymyr Zelenskiy said Ukraine’s forces were repelling Russian troops advancing on Kyiv, as Russian forces renewed their assault and attacked the capital and other cities with artillery and cruise missiles.

Western allies are preparing sweeping new sanctions against Russia, including banishing its key banks from the main global payments system, drawing thanks from Ukraine on Sunday as its forces battled advancing Russian troops, Reuters reported.

The biggest assault on a European state since World War Two threatens to upend the continent’s post-Cold War order.

Analysts said the Russia-Ukraine crisis will continue to affect the market this week.

“Volatility is seen, with global investors attuned to headlines unfolding in Russia-Ukraine and its consequent effect on world crude prices,” online brokerage 2TradeAsia.com said in a report.

2TradeAsia.com put the PSEi’s immediate support at 7,300 and resistance at 7,400 to 7,430.

“Expect positioning at intraday lows, as some players seize on weakness to selectively position for prospects this year. Steer clear for possible supply pressure on select stocks, given the month-end portfolio rebalancing,” the online brokerage said.

Meanwhile, Diversified Securities’ Mr. Pangan placed the PSEi’s immediate support at 7,000 and resistance at 7,400. — Luisa Maria Jacinta C. Jocson with Reuters

Yields on government debt increase

GOVERNMENT SECURITIES (GS) continued to be sold off last week, pushing yields higher, as investors turned cautious after Russia moved to invade Ukraine.

GS yields, which move opposite to prices, went down by a week-on-week average of 17.82 basis points (bps), according to the PHP Bloomberg Valuation Service Reference Rates as of Feb. 24 published on the Philippine Dealing System’s website

Local financial markets were closed on Friday in commemoration of the People Power Revolution anniversary.

Yields went up across the board at the secondary market on Thursday from their Feb. 18 finish. At the short end of the curve, yields on the 91-, 182-, and 364-day Treasury bills (T-bill) rose by 16.05 bps, 10.08 bps, and 4.5 bps, respectively, to 0.9723%, 1.1639%, and 1.5453%.

The belly of the curve similarly increased as the rates of the two-, three-, four-, five- and seven-year Treasury bonds (T-bonds) climbed by 37.48 bps (to 3.0566%), 32.09 bps (3.7535%), 25.58 bps (4.3604%), 19.37 bps (4.8164%), and 9.59 bps (5.2529%), respectively.

At the long end, yields on the 10-, 20- and 25-year debt rose by 0.65 bp (to 5.4122%), 19.70 bps (5.6938%), and 20.97 bps (5.6992%).

“Traders are looking at how FOMC (Federal Open Market Committee) and US Treasuries (UST) will react to CPI (consumer price index) pressures given the backdrop of risk aversion due to the ongoing invasion in Ukraine,” a bond trader said in a Viber message on Thursday.

The bond trader added that the Bureau of the Treasury’s (BTr) announcement of its March borrowing plan moved the market last week.

“Markets saw a rout as rising global inflation pressures took precedence over local drivers. The market tracked surges in USTs when US inflation printed 7.5%, while news of the five-year RTB (retail Treasury bonds) added on to the selloff when it was announced,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in an e-mail.

Expectations of the US Federal Reserve tightening by next month has been weighing on economies worldwide recently as US inflation rose at its fastest pace in nearly four decades at 7.5% annually in January.

Meanwhile, Russia’s invasion of Ukraine sent stock markets around the world falling on Thursday while prices of commodities such as oil rose, Reuters reported.

The conflict pushed Brent oil past $100 a barrel for the first time since 2014. Russia is the world’ second-largest crude oil producer.

Back home, the BTr announced last Tuesday it plans to borrow P250 billion from the domestic debt market in March, higher than the P200 billion programmed in February.

Broken down, it targets to borrow P75 billion from its weekly T-bill auctions and P175 billion via T-bonds.

The government taps domestic and foreign lenders to help fund its budget deficit capped at 7.7% of the economy this year.

The Treasury raised an initial P120.76 billion from its sale of five-year RTBs at its rate-setting auction on Feb. 15, more than four times the P30-billion issue size. The market flocked the offering as total bids amounted to more than six times the offer at P183.44 billion.

The RTBs, targeted at small investors who want low-risk, higher-yielding savings instruments backed by the government, fetched a coupon rate of 4.875%, higher than the 4.625% set for the same RTB in November last year.

The offer period runs from Feb. 15 to 28 and the bonds will be settled on March 4.

This week, the bond trader expects continued upward pressure on rates especially if the Russia-Ukraine news will help oil prices remain elevated as higher oil prices lead to higher inflation expectations.

“On the domestic end, we have the three-year auction on Tuesday, on top of the ongoing RTB and the February CPI data which will be known on March 4,” the bond trader added.

The Treasury will offer fresh three-year papers worth P35 billion on Tuesday.

Meanwhile, the Philippine Statistics Authority is scheduled to release February inflation data on March 4.

A BusinessWorld poll of 15 economists last week bared a February inflation median estimate of 3.3%. This is higher than 3% print in January but lower than the 4.2% print in February last year. — Lourdes O. Pilar with Reuters

‘Climate-smart’ agriculture budget for 2022 set at P24 billion

THE Department of Agriculture (DA) said it has P24 billion to invest in climate-smart agriculture projects in 2022, mainly involving research, but with funds also allocated to upgrade the telecommunications infrastructure to improve access to climate information.

“In the Philippines, we have centered our climate change and resiliency agenda on strengthening agriculture research for development, including the establishment of biotechnology centers for crops, livestock and fisheries,” Agriculture Secretary William D. Dar said in a statement.

He said the DA is also working with private firms to improve telecommunications infrastructure to provide climate information service and enhance farmers’ ability to adopt productivity-enhancing technology.

It is also working on credit and insurance programs for climate adaptation, geospatial databases, and climate-proof facilities.

The department is implementing climate projects in 130 barangays.

“We must introduce adaptation and mitigation measures to communities rather than to individual farmers and fisherfolk, where communities facing similar climate risks are provided with tailor-fitted, integrated support service,” Mr. Dar added. — Luisa Maria Jacinta C. Jocson

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