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Weak demand to push up rates of T-bills, bonds

BW FILE PHOTO

RATES OF government securities on offer this week may inch higher after the peso hit the P50-per-dollar level and as demand for safe-haven assets wanes as economic recovery picks up.

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

On Tuesday, the BTr will offer P35 billion in fresh 20-year Treasury bonds (T-bonds).

Two bond traders interviewed on Friday said they expect T-bill rates to move sideways with a slight upward bias from the yields fetched at last week’s auction.

For the 20-year bonds, the first trader sees its coupon rate ranging from 4.875% to 5.125%, while the second trader gave a higher forecast range of 5% to 5.25%.

“The market has put on a defensive stance this past week due to relatively elevated USD/PHP levels and breaching the P50 psychological handle,” the first trader said.

The peso depreciated to P50.08 against the greenback on Friday from its P49.875 close on Thursday. This was its weakest finish in more than a year or since its P50.19-per-dollar close on June 23, 2020.

Meanwhile, the second trader said demand for government securities has been tapering off recently as investors are starting to shift to other high-yielding assets on signs of economic recovery here and abroad.

The Philippines’ exports and imports of goods continued to grow in May, albeit at a slower pace than April, latest Philippine Statistics Authority data showed.

Exports rose 29.8% year on year to $5.89 billion in May to bounce back from the 27% contraction a year ago, while imports increased by 47.7% to $8.65 billion from the 41% decline in the same month last year. However, analysts noted that the rebound was lower than  expected and the surge may have been largely due to base effects.

Local manufacturers also reported improving conditions in June after IHS Markit’s Philippine Manufacturing Purchasing Managers’ Index (PMI) grew to 50.8 last month from 49.9 in May, the first time since March that the index breached the 50 neutral mark that separates contraction from expansion.

The BTr last week made a full award of its offer of P15 billion in T-bills, with total tenders reaching P49.323 billion.

Broken down, the Treasury raised P5 billion as programmed via the 91-day debt papers. The three-month papers fetched an average rate of 1.044%, up from the 1.031% quoted at the June 28 auction.

It also borrowed the planned P5 billion from the 182-day T-bills at an average rate of 1.351%, up from 1.332% previously.

Lastly, the BTr made a full P5-billion award of the 364-day securities it offered, as the average yield inched up to 1.568% from 1.562% seen the week prior.

Meanwhile, the last time the Treasury offered the 20-year tenor was on June 29, when it raised P35 billion as planned via reissued papers which have a remaining life of 11 years and eight months. The offer attracted P65.265 billion in bids.

The reissued bonds fetched an average rate of 4.187%, higher than the 3.635% coupon quoted for the series.

At the secondary market on Friday, the 91-, 182- and 364-day T-bills were quoted at 1.178%, 1.412% and 1.602%, respectively based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website. Meanwhile, the 20-year note fetched a rate of 4.967%.

The Treasury is looking to raise P235 billion from the local market this month: P60 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Beatrice M. Laforga

Mitsubishi PHL welcomes new president and CEO

Outgoing Mitsubishi Motors Philippines Corp. (MMPC) President and CEO Mutsuhiro Oshikiri (second from right) turns over a symbolic key to his successor, Takeshi Hara. With them are MMPC FVP for Sales Cecil Capacete (left) and MMPC SVP for Finance Arnold Armario (right). — PHOTO FROM MITSUBISHI MOTORS PHILIPPINES CORP.

Takeshi Hara vows to work on ‘customer experience’

By Kap Maceda Aguila

AT THE START of the month, Mitsubishi Motors Philippines Corp. (MMPC) officially welcomed Takeshi Hara as its new president and CEO. He succeeds Mutsuhiro Oshikiri, who had helmed the company since Aug 1, 2017.

In a release, MMPC said that it “remained to be the strong number two automotive brand in the country” throughout the outgoing executive’s stint. “During the most challenging time of the COVID-19 pandemic, Mr. Oshikiri steered the company and implemented structural reforms to strengthen MMPC,” the company continued.

Under his watch, Mitsubishi in the country reached several milestones: one million units in sales, its 700,000th vehicle produced, and the 200,000th L300 made. Additionally, MMPC sold its most number of units in a month (6,822 in March 2017), launched its best-selling Xpander MPV, and also unveiled a Euro 4-compliant Mitsubishi L300.

“Though there are a lot of challenges that we encountered in the past, I consider myself lucky to have been part of a strong organization that demonstrated admirable resiliency during the most trying times. I am confident that I am leaving MMPC to good people that will uphold its values and will serve the brand well,” said Mr. Oshikiri in a speech delivered last week during the online turnover ceremony, attended by MMPC officials and members of the media.

As he paid tribute to his predecessor (who will be retiring), Mr. Hara said that he aims to “develop and execute programs that revolve around customer experience,” with a view to bringing the Mitsubishi brand “closer to the heart of the Filipinos.”

The new MMPC chief has spent a huge chunk of his career with the brand, having joined Mitsubishi Motors Corp. (MMC) back in 1993. Mr. Hara assumed various roles and assignments ranging from plant operation, corporate planning, sales and after-sales for MMC in Japan, and several other countries including Thailand. Prior to his posting here, he was in Puerto Rico from 2019 to 2021 as president and CEO of Mitsubishi Motors Sales Caribbean, Inc., MMC’s subsidiary and distributor there. Mr. Hara started to transition into his new role MMPC last April as executive vice-president and assistant to the president and CEO.

“Similar to our products that are designed to cater to various lifestyles and life stages, we will use each moment as an inspiration to provide more value to our offerings and further improve our service. We will forge brand partnerships that will align us better with Filipino interest and considerations. We will strengthen brand love by supporting all things that matter to our valued customers,” continued Mr. Hara. “I’d like to create more ways to appeal to our various customers.”

Along with the improvement of customer experience, the executive said MMPC will continue to leverage the brand’s technology and embark on a digital transformation — areas that are expected to appeal to a tech-savvy market. “The Philippines is a very young country,” Mr. Hara noted.

Meanwhile, MMPC FVP for Sales Cecil Capacete expressed hope that the business climate will be much better this year, adding that the company seeks to improve on its 15% market share, as well as fortify its strong number two position. For his part, MMPC SVP for Finance Arnold Armario said that while he is “confident about (the business) rebounding this year,” it hinges upon the rollout of vaccines.

Replying to a question from “Velocity,” Mr. Hara said he sees the opportunities and strengths in the Philippine market predicated on “relationships, family, (a) great atmosphere.” He noted the brand’s “very strong” SUV and pickup products, and its manufacturing activities as well.

“We can increase market share,” he declared, and shared that the company will be launching two new vehicles in the near future.

Gov’t debt yields end flat

YIELDS on government securities (GS) traded in the secondary market ended flat last week as the market reacted to the peso’s depreciation, bond auctions, and the release of the minutes of the US Federal Reserve’s June meeting.

Debt yields fell by an average of 1.27 basis points (bps) week on week, based on the PHP Bloomberg Valuation Reference Rates as of July 9 published on the Philippine Dealing System’s website.

The short end of the curve saw rates of the 91- and 364-day Treasury bills (T-bills) decline by 1.07 bps and 0.05 bp, respectively, to 1.1775% and 1.6022%. The yield on the 182-day paper was nearly flat as it increased by just 0.02 bp to 1.4123%.

Meanwhile, the three-, four-, five-, and seven-year Treasury bonds (T-bonds) saw their yields fall by 0.24 bp (to 2.3357%), 2.38 bps (2.6543%), 3.27 bps (2.9501%), and 3.93 bps (3.4285%), respectively. On the other hand, the rate of the two-year bond went up 2.38 bps to 1.9805%.

At the long end, yields on the 10-, 20-, and 25-year T-bonds lost 4.52 bps, 0.63 bp, and 0.31 bp to 3.8513%, 4.9665%, and 4.9658%, respectively.

A bond trader said there was “very strong two-way interest” last week as profit takers and bargain hunters clashed.

“There were multitude of factors for the past week: June’s CPI (consumer price index) inflation printed better than expected at 4.1% and then US Treasury yields traded lower on a week-on-week basis as COVID-19 (coronavirus disease 2019) variants may have fueled some concerns about a possible slowdown in global economic growth,” the trader said.

The bond trader also noted improved sentiment for bonds after the minutes of the Federal Open Market Committee’s June 15-16 meeting released last week showed that while there were discussions on reducing asset purchases, US central bank officials expressed the need for patience in unwinding its pandemic-driven easy monetary policy.

“On the other side of the spectrum, some profit taking was seen on the recently reissued seven-year paper which cheapened by 7.5 bps week to date. Some market players were also vigilant on the rise of the [peso-dollar] exchange which already moved past the P50.00 handle,” the bond trader added.

ATRAM Trust Corp. Head of Fixed Income Miguel B. Liboro said yields on government debt initially drifted lower last week.

“[T]owards the latter part of the week, market focus shifted towards the sharp peso depreciation and supply inflow via the 20-year auction [this] week. Yields adjusted back up to close the week largely flat with a decent portion of the week’s volume focused on seven-year and longer tenors with players freeing up some space prior to the auction,” Mr. Liboro said in an e-mail.

The peso closed at P50.08 per dollar on Friday, its weakest in more than a year or since the P50.19 finish on June 23, 2020. 

Meanwhile, the Bureau of the Treasury on Tuesday raised P35 billion as planned via the reissued seven-year T-bonds with a remaining life of six years and nine months. The offer was nearly two times oversubscribed with tenders reaching P61.175 billion, causing the Treasury to open its tap facility to raise an additional P5 billion from the tenor.

The reissued bonds fetched an average rate of 3.576%, 10.8 bps higher than the 3.468% quoted for the seven-year tenor at the secondary market prior to the auction.

On the other hand, the government reported last week that headline inflation eased to 4.1% in June, the slowest rate in six months. It brought the six-month average to 4.4%, above the central bank’s 2-4% target and 4% forecast for the year.

“For [this] week, local bond yields are expected to continue trade range bound. T-bill auction results should guide direction for the short end of the curve, while the 20-year auction results (expected to clear within 4.875% to 5.125%) will navigate yield direction for belly to long-end securities,” the bond trader said.

ATRAM Trust’s Mr. Liboro also expects the 20-year T-bond auction to be the “catalyst for short-term movements.”

“We expect it to clear around 5% where it will have decent value given the recent deceleration in inflation. While there may be some short-term pressure higher on yields, we expect yields to gradually run lower from current levels as inflation drops below 4% by year-end,” Mr. Liboro said.

The Treasury will auction off P15 billion in T-bills on Monday and P35 billion in fresh 20-year T-bonds on Tuesday. — B.T.M. Gadon

What is cultural appropriation, and how does it differ from cultural appreciation?

The government of Mexico accused clothing companies including Anthropologie of appropriating and selling designs derived from indigenous Mexican cultures — HTTPS://WWW.GOB.MX/

FASHION COMPANIES are increasingly being taken to task for selling expensive versions of traditional Indigenous dress. Gucci’s kaftans came with a $3,500 price tag, which is far more than the $10 that Indians pay for a very similar-looking traditional kurta. Louis Vuitton’s $700 scarfs resembled the keiffyeh that is viewed as a symbol of Palestinian nationalism and sold in much of the Arab world at a far lower cost. Both fashion labels received criticism, but not only for the seemingly inflated prices. They were accused of appropriating Indigenous cultural artifacts for profit.

It is also an accusation that has been leveled against many celebrities. The American model Kendall Jenner was accused of “hijacking Mexican culture and wearing it as a costume” for her new Tequila 818 advertising campaign. And Canadian singer Justin Bieber is yet again being accused of cultural appropriation for sporting dreadlocks — a natural hairstyle for people of color across many different civilizations.

These are just a few examples of the increasing global phenomenon of people, organizations, and businesses being held to account for appropriating cultures outside of their own. Interestingly, though, the boundaries between ethical cultural sharing and exploitative cultural appropriation are not always clear. I am a scholar researching American race and ethnic relations, and students often ask me how they can differentiate between the two.

In the halls of academia, discourse regarding cultural appropriation arose in the late 1970s, sparked by the publication of Edward Said’s famous book Orientalism. In this work, Mr. Said explored how, in the West, cultural notions of the “orient” invariably aided and abetted the material and cultural plundering of Asia.

As research on the history of Western cultural exploitation of Indigenous peoples proliferated, the work and research of American historian and cultural theorist George Lipsitz came to be viewed as laying the foundation for today’s debates regarding what is and what is not cultural appropriation.

Mr. Lipsitz, writing in the 1990s, argued that cultural appreciation becomes cultural appropriation “when an element of culture is adopted from a marginalized group without respect for its cultural meaning or significance or with the purpose of exploiting the culture for economic or social gain.”

That being said, scholarly consensus regarding cultural appropriation has long accepted that the lines between cultural appreciation and appropriation may be difficult to clearly determine in real time, and especially within the contemporary social media-driven zeitgeist.

There have been myriad cases of cultural appropriation of Indigenous and traditional cultures. However, some cases appear to be more clearly unethical and exploitative of culture than others.

The vast plundering of Indigenous cultural artifacts, treasures and traditions that occurred throughout the colonial era provides the clearest historical examples of unconscionable exploitation and appropriation of Indigenous cultures. And, for the most part, the treasures still have not been returned.

A more recent example of clearly unethical cultural appropriation and exploitation of Indigenous cultures for profit came to the fore in 2021 when the government of Mexico accused clothing companies Zara, Anthropologie, and Patowl of appropriating and selling designs based on patterns and symbols derived from indigenous Mexican cultures and demanded recompense.

The line blurs a bit when celebrity influencers unwittingly appropriate and inappropriately flaunt sacred symbols of Indigenous and traditional cultures — as in the case of Kim Kardashian sporting earrings patterned from the sacred Hindu Om symbol during a photo shoot for her beauty products line.

In another example, lingerie company Victoria’s Secret has repeatedly used designs inspired by sacred Native American traditions during its fashion shows.

A similar case of blurred lines between cultural appreciation and appropriation arose just last month when actor Michael B. Jordan announced on the US holiday Juneteenth the launch of his new rum brand J’ouvert. The name derives from the Trinidadian word for the early morning celebrations kicking off the nation’s annual Emancipation Day — a holiday marking the abolition of slavery in the Caribbean in 1838.

The marketing campaign for Mr. Jordan’s rum reduced this important Trindadian holiday to the tagline — “J’OUVERT Rum is a tribute to the party start,” provoking wide condemnation from Trinidadians, including Trinidadian rapper Nicki Minaj.

In support of Mr. Jordan and the rum’s name, some Trinidadians pointed out that one of Mr. Jordan’s business partners is Trinidadian and that Trinidad as a nation benefits from the exposure. Some social media commentators argued that the criticism may be misguided because, although Mr. Jordan may not be from Trinidad, he is Black, and diverse Black cultures should unite broadly in support of Black capitalism more generally.

Nevertheless, after a few days of contemplation, Mr. Jordan and his business partners apologized and opted to rebrand their rum.

The reality is that adjudicating between cultural appreciation and appropriation is never simple, and that is because cultures are vast, complex, historically determined and ever-changing.

In the cases of both Ms. Kardashian and Mr. Jordan, I would argue that had either of them sought to establish true cultural appreciation for the cultures from which they were drawing, the accusations and inappropriate use of cultural symbols could have been avoided. This could have been achieved through long immersion and deep learning over the years about the history and current manifestations of the cultures.

Americans are increasingly living within fantastically diverse multicultural worlds. Sharing in each other’s cultures is not only good; when done right, it is important and helps build community.

But cultural sharing is best when done mindfully. And cultural appreciation is best when it is not ephemeral or fad-inspired.

 

Joshua E. Kane is a Lecturer at the Arizona State University

Agriculture tourism seen benefiting from greater mobility for children

BUKID AMARA FB PAGE

By Revin Mikhael D. Ochave, Reporter

AN AGRI-TOURISM business owner said a recent resolution by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) allowing children to visit more sites will help the industry bounce back from the coronavirus disease 2019 (COVID-19) pandemic.  

Michael S. Caballes, owner of agri-tourism destination Bukid Amara in Lucban, Quezon, said he is hoping foot traffic will increase after the issuance of IATF Resolution No. 125 which allowed children aged 5 years old and above to go outdoors in areas under general community quarantine and modified general community quarantine. 

Quezon Province is observing general community quarantine between July 1 and 31 while its capital, Lucena City, is under modified enhanced community quarantine between July 1 and 15, according to IATF Resolution No. 124 signed on June 30.  

Mr. Caballes told BusinessWorld by mobile phone that his farm has only been seeing around 20% of pre-pandemic foot traffic.

“We welcome this news as most families would really like to bring their kids outdoors. Majority of the inquiries we were getting in the past few months were about whether we allow kids. With this development, foot traffic will definitely increase,” Mr. Caballes said.

“We have been lobbying for this since most agri-tourism destinations have outdoor facilities like Bukid Amara, and so long as we follow social distancing and wearing masks and health protocols are followed, the families can enjoy outdoor leisure activities,” he added.

Mr. Caballes said he was also forced to make adjustments during the pandemic, including a Grab&Grow line of urban gardening products launched in May 2020 to cash in on the boom in plant cultivation.

“When the pandemic hit, we had no income for a few months. Since we have a small (business) involving potted flowers and herbs and some vegetables, we focused our effort on production during the pandemic,” Mr. Caballes said.  

Some of the tourist attractions of Bukid Amara include flower meadows, a café, a fish feeding pond, and picnic grounds.

Grab&Grow offers seeds and starting and potting mixes for urban gardeners.   

“Even during the lockdown, we continued to cultivate the bloom field to give our followers a positive vibe in the middle of the pandemic. The tourists are coming back although not as much compared to before the pandemic,” Mr. Caballes said.

Mr. Caballes said he plans to keep the entrance fee at P100 despite the projected higher demand as a result of the IATF resolution.

He also encouraged other agri-tourism sites to find other opportunities and diversify their revenue streams.  

“The pandemic has presented us with plenty of challenges and also an opportunity to re-strategize our business plan and adopt to the new normal,” Mr. Caballes said.

“We do wish tourism can return to the old normal but for the time being, the pandemic also opened up some opportunities for us (in) the urban farming market,” he added.

SC affirms nearly P2-B suspended taxes from Shell

PHILSTAR

THE Supreme Court (SC) affirmed the suspension by the Court of Tax Appeals (CTA) of the collection of excise taxes from Pilipinas Shell Petroleum Corp. (PSPC) for its importation of a petroleum additive from January 2010 to June 2012 amounting to P1.99 billion.

However, the SC also ruled that CTA correctly refused to issue a suspension order on further taxation of PSPC’s shipment of the petroleum additive, alkylate.

In its decision promulgated March 15 and published on July 8, the high court said that the CTA can only decide on final and executory tax assessments.

The high court also remanded to the CTA First Division PSPC’s petition for a temporary restraining order on future taxation of its alkylate shipment.

The Bureau of Internal Revenue (BIR) earlier stated in 21 Authorities to Release Imported Goods (ATRIGs) that it issued for PSPC’s alkylate importations that these are not subject to excise tax because they are “not among those articles enumerated under Title VI of NIRC (National Internal Revenue Code) 1997.”

Title VI states that “the production of petroleum products, whether or not they are classified as products of distillation and for use solely for the production of gasoline, shall be exempt from excise tax.” 

The Bureau of Customs (BoC) later conducted a third-party test of the alkylate specifications, which showed that alkylate is “not in the nature of premium plus, premium, or regular gasoline but a mere component additive, and hence, should not be subject to excise tax.” 

However, in September 2011, the BIR began inserting in subsequent ATRIGs issued directly to the BoC that its “tax assessments were without prejudice to the collection of the corresponding excise taxes, penalties and interests depending on the final resolution of the Office of the Commissioner on the issue on whether this item is subject to the excise taxes under the NIRC of 1997, as amended.”

On June 27, 2012, however, the Department of Energy held that alkylate is not a finished product but an intermediate product, and thus, is not subject to excise tax.

Two days after, in response to a letter from then-BoC commissioner Rozzano R. Biazon requesting clarification on the matter, the BIR wrote back that its laboratory had found alkylate to be a product of distillation, and thus subject to excise and value-added taxes. — Bianca Angelica D. Añago

Land Rover Defender 110: Defending a legacy

A return to form — almost: The Land Rover Defender 110 is both an ode to the old and a paradigm of the 4x4’s future. — PHOTO BY MANNY N. DE LOS REYES

How do you reimagine an icon that virtually invented the art and science of off-roading?

THE ANSWER: You turn to Land Rover. You watch. And you learn.

Land Rover did exactly that when they rolled out their 21st-century interpretation of one of the most iconic 4x4s of all time — the Defender. The result is a stunningly compelling new design that brings all the half-century-old visual values (and charm) of the pioneering Defender, and applies them to an absolutely cutting-edge new body style that is still instantly identifiable as nothing but a Defender.

The aesthetic redo was arguably the most challenging aspect of bringing an ancient yet evergreen icon to the digital age. Despite its 71 years, the tried-and-true mechanicals and off-road capability of the Defender was always unrivaled. Amid the prevalence of so many sport utility vehicles from just about every automaker, the Defender still reigns.

Of course, the changes weren’t all skin deep, especially when you consider the wealth of technological advancements its siblings — namely the Land Rover Discovery and the Range Rover — have on offer.

“We’ve embraced Defender’s stunning capability and minimalistic, functional interior to reinvent the icon for the 21st century. (The) new Defender gives us the license to do things differently, to push the boundaries and do the unthinkable, without ever losing the character and authenticity of the original. From the start, we had an absolute obsession with functionality beneath the skin, from choosing the right materials through to state of the art connectivity. The result is not only the most capable Land Rover ever made, but also a truly comfortable, modern vehicle that people will love to drive,” said Jaguar Land Rover Executive Director for Product Engineering Nick Rogers.

A distinctive silhouette — still squarish but with more softly rounded edges — makes the new Defender instantly recognizable. Minimal front and rear overhangs provide superb approach and departure angles. Land Rover designers re-envisioned signature Defender design cues, giving the new 4×4 a purposeful upright stance, while retaining the Alpine light windows in the roof, the side-hinged rear tailgate, and the tailgate-mounted spare wheel that make the original so identifiable.

The spartan personality of the original Defender has been embraced inside, where functional elements and small details usually hidden from view not only remain exposed, but actually become stylistic throwback elements. There is still an emphasis on simplicity and practicality. Innovative features include a dash-mounted gear shifter to accommodate an optional central front “jump” seat, which provides three-abreast seating across the front like in early Land Rovers. You only realize how much the Defender has advanced, technologically speaking, when you see the huge central touchscreen and the fully digital and configurable instrument panel.

The Defender 110 offers seating for five, with the cargo area behind the second-row seats able to swallow 1,075 liters, and as much as a cavernous 2,380 liters when the second row is folded. The tall and boxy shape allows for generous headroom and legroom. And while the interior design certainly harks back to the Defenders of old, the tactile experience is anything but. Every interior surface is softly padded and much more ergonomic in design.

User-friendly features include practical touches and advanced technological innovations. Durable rubberized flooring shrugs off the spills of daily adventures and once-in-a-lifetime expeditions, providing an effortless brush-off or wipe-clean interior. An optional full-length folding fabric roof provides an open-top feel. It also allows passengers in the second-row seats of the Defender 110 to stand up when parked for that full safari experience.

A major departure from Land Rover practice is the use of a monocoque chassis in lieu of the traditional body-on-frame construction. Land Rover’s new purpose-engineered D7x (for extreme) architecture is based on a lightweight aluminum monocoque construction to create the stiffest body structure Land Rover has ever produced. It is three times stiffer than traditional body-on-frame designs, providing perfect foundations for the fully independent air or coil sprung suspension and supports the latest electrified powertrains. More importantly — especially to the vast number of SUV buyers who almost never venture off road — the new Defender’s monocoque chassis results in a downright luxurious ride; certainly a boon for day-to-day city driving.

In an age of extensive digital prototyping, the new Defender has been through nothing less than 62,000 real-world tests before engineering sign-off. The chassis and body architecture have been engineered to withstand Land Rover’s Extreme Event Test procedure: Repeated and sustained impacts, above and beyond the normal standard for passenger cars and even SUVs. During development testing, prototype models covered millions of kilometers across some of the harshest environments on earth, ranging from the 50-degree heat of the desert and minus-40-degree cold of the Arctic to altitudes of 10,000 feet in the Rocky Mountains in Colorado. It’s a beautiful case of over-engineering.

As for hardware, full-time all-wheel drive and a two-speed transfer box with a rear axle open differential (or an optional electronic active differential), ensure the Defender can traverse the trickiest and most challenging terrain. Meanwhile, Configurable Terrain Response allows experienced off-roaders to fine-tune individual settings to suit the conditions, while inexperienced drivers can let the system detect the most appropriate vehicle settings for the terrain, using the intelligent Auto function.

The new Defender provides a ground clearance of 291mm and world-class off-road geometry, giving the 110 approach, breakover and departure angles of 38, 28, and 40 degrees (on Off Road height), respectively. Its class-busting wading depth of 900mm is supported by a new Wade program in the Terrain Response system, which ensures drivers can ford deep water with complete confidence.

On dry land, Land Rover’s advanced ClearSight Ground View technology helps drivers take full advantage of the Defender’s all-conquering capability by showing the blind spot hidden by the hood, directly ahead of the front wheels, on the central touchscreen.

The new Land Rover Defender D240 is powered by a very high-torque yet utterly refined Ingenium D240 twin-turbo diesel powerplant (mated to an eight-speed automatic). I got to test the extremely loaded top-of-the-line Defender D240 Explorer variant. It retails for P6,510,000 and comes equipped with a raised air intake, side-mounted gear carrier, deployable roof ladder, wheel arch protection, handsome “110” matte black hood decal, classic mud flaps, a spare wheel cover, and an expedition roof rack. (The Defender 110 starts at P6,210,000 with the Urban variant.)

The new Land Rover Defender absolutely redefines the 4×4’s breadth of capability, raising the threshold for both off-road ruggedness and on-road comfort. It can negotiate crowded city streets as effortlessly as climbing mountains, crossing deserts and withstanding freezing temperatures. Its meticulously honed handling delivers both rewarding drive and luxury car comfort across all terrains. And as it has been for the last 71 years, it’s in a league of its own.

Big in Japan

Pinoy designers set their sights for Tokyo

Eight Filipino designers are hoping to impress the fashionistas of Tokyo, in the culmination of a project referred to as PhX.

These designers are: Feanne Mauricio, Jill Lao, Joseph Bagasao, Neil Philipp San Pedro, Kelvin Morales, Joyce Makitalo, HA.MÜ’s Abraham Guardian and Mamuro Oki, and Jerone Lorico.

The project started as a series of talks in 2019, expanding into a series of portfolio reviews, and mentorship programs, with the help of Center for International Expositions and Missions (CITEM), and Tokyo’s H30 Fashion Bureau and LIT Fashion Consultancy. The collections resulting from this program are currently in Tokyo (as per the PhX Instagram account) for the 2022 fashion buying season.

The designers’ mentors for the project were market specialists Jason Lee Coates and Hirohito Suzuki of H3O Fashion Bureau and Tetta Ortiz-Mattera of LIT Fashion Consultancy. Over eight months they discussed a variety of essential skills needed to crack the Japanese market, including marketing, branding, and the rudiments of Japanese retailing.

“Alongside aesthetic, of course, there was always the commercial component that they had to consider. Under the watchful and expert eye of Jason, Hiro, and Tetta, our PHx Tokyo designers were also able to tailor their sartorial voices for the discerning Japanese market,” CITEM Executive Director Pauline Suaco-Juan was quoted as saying in a statement from CITEM.

“Japanese buyers are always fascinated to look at new brands. So hopefully we can have that knowledge with respect to quality, with respect to cut and fit, with respect to fabrications and pricing,” Mr. Coates was quoted as saying in the same statement.

“They know their design aesthetic, their market. But we need to pivot and make them understand that what they know in the Philippines does not necessarily apply to the Japanese market. So the mentoring program addresses that,” said Ms. Ortiz-Matera of the mentoring sessions. “The designers we are working with are very receptive. They acknowledge that what they already know is not the end-all and be-all of fashion. And there’s also the mutual respect between us and designers.”

BusinessWorld caught up with Messrs. Bagasao and San Pedro during the PHx Fashion Previews, a series of talks held earlier this month, where the two designers discussed their collections.

“When I design a collection, it’s always a response to how I feel,” said Mr. Bagasao. A moderator during the event, Junior Fashion Editor at L’Officiel Philippines Yanna Lopez, described the collection as tasteful and with singular detail. Mr. Bagasao’s collection reflects something airy and light, a response to the isolation brought on by the global pandemic. “There’s a lot of people stuck in homes. It is a way for me to kind of help to get you out of your minds and make a destination within your own mind,” said the designer. He also imagines those clothes in a world populated by figures from the pictures taken by society photographer Slim Aarons in the 1960s.

From his mentorship program, Mr. Bagasao learned that certain details wouldn’t work in Japan: these include showing too much skin and too-tight necklines. “They’ve spoken about the details that the Japanese would or wouldn’t like,” he said of his mentors.

Still, it’s no hindrance to his creative direction: “I always had to come back to what is true for me, as a designer and as a creative,” he said. “As long as you stay true, and you trust in your own timing, you wouldn’t need to push yourself out of who you are just to please everyone. The right people will see your clothes.”

Mr. San Pedro, on his end, showed off a collection of bags, blooming from his previous experience in molding minaudières. Yes, everyone has a version of one these days, but how many of those bags have made it to the set of Crazy Rich Asians? His mermaid-clasped minaudière was seen on the hands of the character Astrid Young in the movie. His Tokyo-bound collection, however, is a lot softer, moving from his usual hard materials to abaca. He manipulated the material with metallic thread to get an illusion of the sun’s light hitting then reflecting off the sea. “I wanted to introduce to Japan a material that is very known here in the Philippines, and giving it a modern twist [with] our craftsmanship,” he said.

“One of our missions really is to work with local communities, innovate [with] their craftsmanship, and update it in a way that it can follow global standards,” he said.

All PHx Tokyo brands can be seen on FAME+, CITEM’s digital platform for the country’s home, fashion, and lifestyle sectors. — JLG

Farmers urged to plant more durian as new markets open

SMALL-SCALE durian growers sell their harvest for as low as P25 per kilo from the back of mini trucks parked on roadsides. — BW/MMPADILLO
SMALL-SCALE durian growers sell their harvest for as low as P25 per kilo from the back of mini trucks parked on roadsides. — BW/MMPADILLO

DURIAN FARMER Candelario B. Miculob has called on fellow growers to expand production to sustain export markets such as Australia and the United States as well as capture others that are showing interest.  

“Exports are gaining traction based on current inquiries,” Mr. Miculob, former president of the Durian Industry Council of Davao City, said in an online interview.

He said traders from Japan and China, two of the Philippines’ top fruit export destinations, have been asking about durian supply.

He added that local demand for both fresh and frozen durian has also been increasing in the capital Manila.

“Kaya lang wala tayong (However, we do not have) supply at the moment,” he said.

He added that lower production is expected in the coming harvest season within this quarter due to high levels of rainfall in recent months.

In March, the first shipment of frozen durian arrived in Australia following an order by Melbourne-based importer, Aus Asia Produce Pty Ltd. — Maya M. Padillo

Supreme Court favors Levi Strauss in trademark case

LEVI STRAUSS & CO FB PAGE

THE Supreme Court (SC) granted the petition of foreign corporation Levi Strauss & Co., owner of the word mark “LEVI’S,” to cancel “LIVE’S” mark due to the confusing similarity of the latter with that of the clothing brand.

In its decision dated March 1 and published on July 6, the high court said the two marks have “the same look and feel… from the color scheme, border used, fringe banners, to even some of the textual additives surrounding the mark.”

It added that the use of the number design “105” with the LIVE’S mark is an imitation of LEVI’S “501” mark.

The high court further stated that the LIVE’S mark is a “mere colorable imitation” of the LEVI’S mark, which the law defines as “such a close or ingenious imitation as to be calculated to deceive ordinary purchasers.”

A 1995 survey by Levi Strauss in the Philippines revealed that 90% of the respondents read the LIVE’S mark as LEVI’S, and 86% of the people surveyed associated the LIVE’S mark with LEVI’S.

Levis Strauss’ petition for cancellation of the LIVE’S mark was denied by the Intellectual Property Office’s Bureau of Legal Affairs in January 2009 because “they had different pronunciations, spellings, meanings, designs, prices, and trade channels.”

The Court of Appeals also dismissed the petition in September 2014 because the rights and interests over the LIVE’S mark had already been transferred, which the SC reversed in its decision because the registration of the mark remains valid until Nov. 16, 2022. — Bianca Angelica D. Añago

Outstanding government securities rise to P7.398 trillion in June

OUTSTANDING Treasury bills (T-bills) and Treasury bonds (T-bonds) inched up to P7.398 trillion as of end-June as the government hiked its borrowings to take advantage of low interest rates, data from the Bureau of the Treasury (BTr) showed.

Latest BTr data showed that the outstanding government securities recorded as of June inched up from the P7.376-trillion recorded at end-May after the government increased its local borrowings.

The Treasury raised P257 billion via T-bills and T-bonds in June against the programmed P215 billion and the P217.4 billion borrowed in May.

National Treasurer Rosalia V. de Leon had said they increased the borrowing program to take advantage of strong demand and low interest rates.

Broken down, outstanding T-bonds grew by 1.1% to P6.375 trillion as of June from P6.306 trillion at end-May.

This total was made up of P252.51 billion in three-year bonds, P401.78 billion in five-year papers, P605.13 billion in seven-year debt, P820 billion in 10-year notes, P420.33 billion in 20-year T-bonds and P236 billion in 25-year securities.

Meanwhile, outstanding retail Treasury bonds (RTBs) issued totaled P2.483 trillion.

On the other hand, outstanding T-bills reached P1.023 trillion as of last month, down by 4.4% from the P1.07 trillion seen as of May.

This consisted of P138 billion in 91-day T-bills, P242.4 billion in 182-day papers and P642.676 billion in 364-day debt.

Meanwhile, separate Treasury data showed the government also increased its debt repayments in May.

Its total debt service bill grew by 53.41% to P37.8 billion in May from P24.64 billion in the same month a year ago. Month on month, however, this declined by 41% from P64.29 billion in April.

Interest payments made up 76.5% of the total bill, while the rest went to amortization.

The BTr paid P28.93 billion in interest in May, 57.6% higher than the P18.353 billion seen in May 2020 and also 21% more than the P23.82 billion spent in April. Around 83% of the total or P24.11 billion went to domestic interest payments, while the remaining P4.82 billion was paid for interest on its external debt.

Meanwhile, amortization payments reached P8.867 billion in May, up by 41% from P6.289 billion a year ago, but 78% lower compared to the P40.469 billion paid in April.

Domestic amortization payments totaled P793 million that month, while principal payments made to its foreign creditors reached P8.074 billion.

The May debt service bill pushed the five-month tally to P623.593 billion,21.6% higher than the P512.96 billion logged in the same period last year.

Amortization payments made up 71.4% of the total while the rest were interest payments.

Principal payments grew 26.12% to P445 billion in the first five months from P352.85 billion a year ago, while interest payments stood at P178.61 billion, up 11.6% from P160 billion.

The government is looking to raise P3 trillion from domestic and external lenders as the fiscal gap is seen to hit 8.9% of gross domestic product. It plans to source 85% of the total from the local debt market, while the rest will be raised abroad.

Its outstanding debt reached P11.071 trillion at end-May, up by 0.73% from the previous month. — B.M. Laforga

Suzuki PHL unveils refreshed Ciaz

PHOTO FROM SUZUKI PHILIPPINES

SUZUKI PHILIPPINES, Inc. (SPH) recently revealed the upgraded version of its Ciaz sedan. The vehicle is given “numerous improvements,” from exterior modifications to a refurbished interior.

On the outside, the Ciaz gets a new stylish chrome grille as well as a new, sportier-looking bumper design. It now wears LED lamps and newly designed fog lamps with chrome accents. Inside, the Ciaz gets elegant fabric-covered ergonomic seats, a refined instrument panel, and a black interior with silver accents.

The new Ciaz also receives an upgraded infotainment system — now predicated on an eight-inch screen. It features a soft-touch button and compatibility with Apple Car Play and Android Auto functions. Users can connect their smartphones via Bluetooth or a USB cable to use their apps through the Ciaz’s display. Under the hood is the familiar 1.4-liter petrol engine with a maximum output of 91hp at 6,000rpm.

Suzuki equips the Ciaz with a slew of safety features — a reverse camera, dual air bags, an anti-lock braking system with an electronic brakeforce distribution. The refreshed Ciaz is available in three different colors: Mineral Gray Metallic, Pure White Pearl, and Super Black Pearl. SPH prices it at P888,000.

For more information, follow Suzuki Philippines on Facebook or visit its online showroom at www.suzuki.com.ph; like https://twitter.com/SuzukiAutoPH and follow on Instagram at @suzukiautoph.

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