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Europe, don’t bow to Trump on tech

BRITISH LIBRARY-UNSPLASH

HE HASN’T taken office yet, but the potent influence of President-elect Donald Trump may have already extended from Silicon Valley to Brussels.

Just days after Mark Zuckerberg said he would shut down fact-checking for American users on Meta Platforms Inc., an obvious placating move to Trump, the European Commission has said it’s “assessing” investigations into the market dominance of Apple, Inc., Alphabet, Inc. and Meta.

Confirming any information in Brussels is often a messy endeavor. “There is no such assessment taking place,” a spokeswoman for the commission told me. But at a press conference on Tuesday, another representative said “there may be a political reality that puts pressure on the technical work,” in response to questions about Trump.

Of course there is. It would be foolhardy for Europe’s antitrust cops to ignore what’s happening on the other side of the Atlantic. Among other things, Trump has threatened the region with tariffs, and Zuckerberg has accused the EU of “screwing with” US companies and urged the incoming president to stop the bloc’s fines and new standards.

But there’s a reason why this is in the news. Read between the tea leaves and it seems there’s concern in Brussels that its new antitrust officials* won’t hold the line and enforce the quick and blunt regulatory tools given them by the new Digital Markets Act (DMA), which came into force in January. The Financial Times first reported the assessments on Monday, citing a senior official as saying that Trump’s election “was a factor.” That leak itself suggests worry.

At stake is the outcome of three ongoing cases against Apple, Alphabet, and Meta, all under the DMA. None have yet been fined, but there have been efforts to extract changes in behavior. That’s no bad thing. For years, fines have simply been a cost of doing business for the largest tech companies, and shareholders know it. When the US Federal Trade Commission imposed a $5 billion fine on Facebook in 2019, its stock went up.

But the commission is also working to change the more egregious behavior affecting its citizens. For instance, as part of its efforts with Meta, it has pushed the company to offer EU users an option to use Facebook without targeted advertising. Meta recently started providing that option — with a €12.99 ($13.34) subscription fee. That wasn’t good enough, the commission told Meta. There should be a version that better protects personal data and is free. In November, Meta agreed to lower that subscription price by 40%.

This was like pulling teeth, but it was progress. Europe’s previous antitrust cases against Big Tech took many years because they hinged on old, vague laws that put the burden of proof on the regulator. The DMA with its 22 concrete rules about market abuse was designed to allow the commission to move more quickly. And at a time when the biggest tech firms have copied the ideas of their competitors, absorbed their teams or found ways to lock customers into their ecosystems — often without much pushback thanks to their armies of lobbyists and lawyers — smarter tools for policing were sorely needed.

As the commission evaluates its cases, it must resist pressure to hold back on its enforcement plans. In 2023, Brussels officials said they might order a breakup of Alphabet. The idea was ludicrous not long ago, but the following year, the US Department of Justice made the same proposal. One must wonder if that could slide off the table, too, if the commission decides it’s politically expedient to roll back antitrust efforts.

That would be highly unfortunate both for businesses and the public. The EU has already shown it can yield real behavioral change, as seen with Meta’s concessions on ad-free access. With new leadership taking the helm in Brussels, backing down would signal that political pressure can impede its role of fostering market competition and protecting European citizens. That’s a message the bloc can’t afford to send.

BLOOMBERG OPINION

*The European Commission is in the middle of a leadership transition. Margarethe Vestager, who for years has been the EU’s top antitrust cop, is being replaced by Teresa Ribera. Henna Virkkunen is also taking the role of EU industry chief from Thierry Breton.

BPI shares inch up on integration news

BW FILE PHOTO

SHARES in Bank of the Philippine Islands (BPI) inched up last week following news of the Ayala-led lender’s plans to complete its integration with Robinsons Bank Corp.’s (RBC) branches this year.

Data from the Philippine Stock Exchange showed the Ayala-led lender ranking 10th in value turnover with P947.10 million worth of 7.96 million shares changing hands from Jan. 13 to 17.

BPI shares finished at P121.50 apiece on Friday, inching up by 0.5% from its P120.90 close on Jan. 10.

For the year, the stock dipped by 0.4%.

Aniceto K. Pangan, equity trader at Diversified Securities, Inc., said that market sentiment may have been affected by US President-Elect Donald J. Trump’s inauguration.

Additionally, Mr. Pangan said that the integration of Robinsons Bank into BPI is expected to enhance cross-selling of consumer loan products, which will add to its interest income and boost profits.

Likewise, for Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., the broader local stock market faced mixed sentiments due to global economic concerns which likely affected BPI.

“The ongoing integration with RBC may have caused investor speculation. While mergers generally signal growth potential, the integration process introduces temporary uncertainties,” Mr. Arce said.

In a report published last week, BPI Chief Executive Officer Jose Teodoro K. Limcaoco said to reporters at a central bank event that the Ayala-led lender expects that all branches of Robinsons Bank Corp. (RBC) will be rebranded by the end of the year, following their merger on Jan. 1, 2024.

Meanwhile, Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte said that RBC will be fully integrated into BPI’s systems within 12 to 18 months.

For Mr. Arce, this integration of RBC into BPI’s operations is a strategic move that is already beginning to boost profitability and that the bank’s offer of consumer loan products is anticipated to enhance revenue streams.

He added that investors are likely to view this as a sign of expansion, but the actual impacts will be clearer as integration milestones are achieved.

He also said that RBC’s incorporation aligns with the Ayala-led bank’s broader strategy to dominate the Philippine banking sector, which is expected to support its valuation in the medium to long term.

As to the impact this will have on its customers, Mr. Arce said that the rebranding of RBC’s branches is expected to improve accessibility for BPI’s customers and standardize service offerings across branches.

For Mr. Pangan: “With the rebranding of Robinsons Bank to BPI, BPI will further boost its presence in those areas where RBC now operates, thereby further increasing their clients.”

In the third quarter, BPI’s attributable net income went up 29.4% to P17.42 billion. Likewise, the Ayala lender’s nine-month attributable bottom line rose 24.3% to P47.99 billion from P38.62 billion previously.

“For the fourth quarter of 2024, revenue gains from cross-selling and operational synergies may position BPI for a robust year-end performance,” Mr. Arce said.

Projected net revenues, he said, are estimated to reach P44.7 billion while net income is projected at P15.4 billion.

Additionally, he said that full-year earnings could exceed P63 billion, assuming sustained growth in the last quarter of 2024.

Mr. Arce said that market players could consider BPI due to its market leadership and strong financial health, as well as the potential growth opportunities that could result from the merger.

Though, he cautioned that short-term uncertainty during the integration process could discourage risk-averse investors.

“Barring any significant market news or events, BPI’s support level may range between P117.00 and P115.00, while resistance is estimated to range between P125.00 and P127.00,” Mr. Arce said.

For Mr. Pangan, he said that the easing of overnight lending rates may impact the bottom line, making it normal for a market correction to occur during this period of uncertainty with US President-Elect Trump, especially given his protectionist stance.

He pegged BPI’s immediate support level at P116.00 per share and immediate resistance level at P125.00. — Abigail Marie P. Yraola

Style: Trend forecasts for this year, from jeans to furniture

ROOTED IN MODERNITY, this Lambat eight-seater dining table seamlessly blends rustic charm with contemporary elegance. Its sturdy beige rattan frame evokes natural, earthy textures, while the sleek glass top adds a touch of sophistication, making it the perfect centerpiece for a cozy, modern dining space.

HERE’S a prediction for you: wide jeans are here to stay.

During the launch of the Uniqlo Jeans Spring/Summer Collection at Xception in Makati, Uniqlo tapped the know-how of Kiichuro Shibue of Amekaji Philippines and celebrity stylist Bea Constantino to show the various ways one can wear Y2K survivor wide-leg jeans.

Ms. Constantino advocated for pairing blue (denim on denim), using color, and heralding a return of the preppy look (less 1980s old money, more casual expensive location vacation). Ms. Constantino also suggested a relaxed formal approach to things, showing wide jeans paired with untucked shirts and large blazers.

Styles that are about to be popular include Uniqlo’s Wide Tapered Jeans and Wide Straight Jeans. Guests tried on their own size at the event with Uniqlo’s new in-app MySize Assist. The Wide Straight Jeans are made with 100% soft cotton denim, with a five-pocket design and a high waist. They’re slightly fitted at the hips with a wide, straight cut from the thighs to the hems. Meanwhile, the Wide Tapered Jeans is made from the same material, but come up to a mid-rise. They’re loose-fitting at the hips with a voluminous cut through the thighs that tapers to the ankle.

“No doubt, it’s really the wide silhouette,” Ms. Constantino said about jean trends this year. “It is having a moment.”

“The jeans offer flexibility,” she said about the current cut’s popularity. “It really caters to all body types, and style preferences.”

FURNITURE DIRECTIONS
ITOOH Homestyle shares four key design directions for the year ahead, along with expert insights to help create a home that’s stylish and meaningful.

Trend No. 1, “Rooted Modernity,” celebrates local artisanship in contemporary homes, blending tradition with modern sensibilities. This emphasizes the use of handcrafted pieces that tell a story, such as solihiya chairs, abaca rugs, or capiz accents. These elements, while steeped in heritage, integrate seamlessly into sleek, modern spaces.

“Rooted Modernity brings depth and authenticity to interiors,” said Andrew Bercasio, Principal Interior Stylist at ITOOH Homestyle in a statement. “A handwoven rattan bench paired with minimalist furniture or a narra wood coffee table with sculptural metal decor adds a timeless elegance to any room.”

To incorporate this trend, mix native materials like bamboo or narra with contemporary textures like glass or metal for a balanced, sophisticated aesthetic that pays homage to local culture.

Playful nostalgia with a modern spin defines “Retro Revival,” Trend No. 2, which brings mid-century silhouettes, bold geometric patterns, and vibrant jewel tones back into the spotlight. This look is about reimagining vintage charm with contemporary relevance, creating a dynamic and stylish space.

“Retro Revival is about injecting joy into your home through nostalgic yet timeless pieces,” said Mr. Bercasio. “Think velvet armchairs in deep emerald or sapphire hues, paired with geometric wallpaper and sleek metallic accents for a fresh take on vintage aesthetics.”

One can incorporate retro-inspired furniture, such as a curved swivel chair or an Art Deco bar cart. Add finishing touches with jewel-toned throw pillows or geometric light fixtures to achieve a playful yet curated look.

The art of curated chaos takes center stage in “Maximalist Layers,” Trend No. 3 which champions bold self-expression through the layering of textures, patterns, and personal collections. This vibrant approach allows one to tell their story through an eclectic mix of decor.

“Maximalism is about celebrating your individuality,” Mr. Bercasio explained. “Whether it’s a gallery wall of family portraits or a mix of ornate mirrors and textured rugs, this trend thrives on diversity and creativity.”

The space can be grounded by using warm, earthy elegance through “Mocha Mousse,” Trend No. 4 and Pantone’s 2025 Color of the Year. This rich yet versatile brown serves as a foundation for creating harmonious and inviting interiors. Its understated sophistication pairs with a variety of palettes, from soft neutrals to vibrant jewel tones.

“Mocha Mousse creates a grounding effect in any space,” said Mr. Bercasio. “Use it as the backdrop for bolder colors, or let it shine on its own through accent walls, plush seating, or textured ceramics.” The color can be incorporated through statement furniture pieces like a sofa or armchair, or layered in smaller accents such as throw pillows and decorative bowls. It can be paired with natural materials like stone, wood, or leather to amplify its warmth and elegance.

For more information, visit ITOOH’s website, www.shopitooh.com . — JLG

Argentina’s Milei poised to announce record trade surplus led by grain, energy exports

JAVIER MILEI — REUTERS

BUENOS AIRES —  Argentina likely logged the largest trade surplus in its history in 2024, a Reuters analyst poll released on Friday showed, on the back of libertarian President Javier Milei’s bid to boost grains and energy exports in his first full year in office.

Milei, who has been president since December 2023, vowed to make Argentina a net energy exporter using the vast shale reserves in the Patagonian Vaca Muerta region. Grains exports, aided by some easing of currency controls and better weather, also rose.

Argentina is the world’s top exporter of processed soy oil and meal, the third largest for corn and an important wheat and beef producer. It has major lithium reserves needed for electric batteries, as well as shale gas and oil.

Analysts polled by Reuters forecast the year-end trade surplus between $18 billion and $19 billion, blowing past the previous record of $16.89 billion set in 2009.

The December monthly data, set to be published by the national statistics agency on Monday, was estimated to be a $921 million surplus, according to the median of the Reuters poll.

From January to November, Argentina logged a $17.20 billion trade surplus, official data show, turning around the $7.94 billion trade deficit in the first 11 months of 2023.

Milei’s drive to turn Argentina’s economy around through an austerity push has also brought inflation down to close the year at 117.8%, after an April peak of nearly 300%.

Analysts say Argentina’s trade surplus is likely to narrow.

“From here on out, we’ll likely see a scenario in which imports grow considerably,” said Federico Gonzalez, an economistat Empiria Consultores.

Imports have already begun to tick up as the Argentine peso has strengthened against other regional currencies, such as the Brazilian real, and as the Milei administration has lifted some taxes on certain goods.

The government this week announced plans to lift

anti-dumping restrictions on imports to bring down prices on goods such as household appliances.

“In 2025 we may see the trade balance come in at just 40% of the 2024 surplus,” said Milagros Suardi, economist at consulting firm Eco Go. “That would come with a recovery in imports, as well as an economic recovery and improved exchange rate.” — Reuters

Gov’t debt yields mostly rise after US inflation data

YIELDS on government securities (GS) traded on the secondary market mostly rose last week following the release of key US inflation data that led markets to reprice their US Federal Reserve rate cut bets.

GS yields, which move opposite to prices, went up by an average of four basis points (bps) last week, based on data from PHP Bloomberg Valuation Service Reference Rates as of Jan. 17 published on the Philippine Dealing System’s website.

Rates at the short end mostly went down. The 91- and 182-day Treasury bills (T-bills) saw their yields decline by 25.38 bps (to 5.4973%) and 19.34 bps (5.6265%), respectively. Meanwhile, the rate of the 364-day T-bill climbed by 3.92 bps to 5.8954.

At the belly, yields were higher week on week except that on the two-year Treasury bond (T-bond), which declined by 1.40 bps to 5.948%. Rates of the three-, four-, five-, and seven-year bonds rose by 6.08 bps (to 6.0656%), 10.85 bps (6.1457%), 13.41 bps (6.1975%), and 16.23 bps (6.2716%), respectively.

Lastly, at the long end, rates climbed across the board. Yields on the 10-, 20-, and 25-year T-bonds went up by 18.48 bps (to 6.3333%), 10.49 bps (6.3931%), and 10.64 bps (6.3919%), respectively.

GS volume traded was at P27.87 billion on Friday, lower than the P34.56 billion recorded a week earlier.

Traders said GS yields were higher following the release of US inflation data and amid elevated US rates in recent weeks as markets continue to adjust their Fed policy outlook, especially with US President-elect Donald J. Trump set to take office.

“We saw bond yields trade higher this week following some data releases in the US, which could support the case of slower interest rate cuts,” the first bond trader said in a Viber message.

“The market reacted more to the news in US rather than from domestic front,” the second trader said in a phone interview.

The second trader said local yields have been moving up amid higher US Treasury rates, even amid better-than-expected US consumer inflation data and dovish comments from some Fed officials.

On Friday, US Treasury yields turned higher with the dollar as upbeat economic data and earnings appeared to help investors shrug off any jitters ahead of the US presidential inauguration, Reuters reported.

The US dollar strengthened against major peers after four days of declines, while benchmark US Treasury yields — after a three-session drop — hit a two-week low before reversing course.

On Wednesday, softer-than-forecast core inflation data had pushed down the US 10-year yield. Adding more encouragement were comments from Fed Governor Christopher Waller on Thursday signaling that three or four rate cuts are still possible in 2025 if data is weaker.

Yields drifted higher in a choppy session after the upbeat housing and industrial production data supported expectations that the Fed would slow the pace of rate cuts.

The yield on benchmark US 10-year notes rose 1.5 basis points to 4.621%, from 4.606% late on Thursday while the 30-year bond yield rose to 4.8535% from 4.845%.

The two-year note yield, which typically moves in step with Fed interest-rate expectations, rose 4.5 basis points to 4.283%, from 4.238% late on Thursday.

The Fed is widely expected to keep rates steady at its policy meeting later this month, with the markets pricing in a greater than 50% chance for a cut of at least 25 basis points until June, LSEG data showed.

Both traders said the market’s focus remains on how Mr. Trump’s potential policies would affect US inflation and, in turn, the Fed’s policy path, with the second trader noting that bets on the Bangko Sentral ng Pilipinas’ future easing moves have been priced in already.

The second trader added that the market turned defensive after last week’s T-bond auction as the awarded average rate was at the higher end of the expected range due to cautiousness before Mr. Trump’s inauguration, which indicates some aggressiveness on the Bureau of the Treasury’s (BTr) part.

The BTr’s willingness to award at high rates could cause GS rates to rise further, the trader said.

On Tuesday, the BTr raised P30 billion as planned via the reissued 10-year bonds as total bids reached P54.219 billion or almost double the amount on offer.

The bonds, which have a remaining life of seven years and eight months, were awarded at an average rate of 6.249%. Accepted yields ranged from 6.075% to 6.29%.

The average rate of the reissued papers was 2.3 bps above the 6.226% seen for the same bond series and 9.1 bps higher than the 6.158% quoted for the seven-year bond at the secondary market before the auction.

For this week, the first trader said GS rates may continue to track US yield movements.

“We do expect yields to stabilize at a clearer range [this] week, although traders will likely pay close attention to President Trump’s rhetoric when he is sworn into office and how he will pursue his policies moving forward,” the first trader said.

“We expect market to continue to monitor comments from the Fed and the BTr’s awarding behavior,” the second trader added.

On Monday, the Treasury will auction off P22 billion in T-bills, or P7 billion each in 91- and 182-day papers and P8 billion in 364-day papers. On Tuesday, it will offer P30 billion in reissued 10-year T-bonds with a remaining life of nine years and 14 days. — P.O.A. Montalvo with Reuters

NAIAX and portions of Skyway Stage 3 hike speed limit to 80kph

PHOTO BY JOYCE REYES-AGUILA

SMC INFRASTRUCTURE announced an increase in the speed limit on the NAIA Expressway (NAIAX) to 80kph from 60kph, which took effect last Jan. 15. “Similar speed limit adjustments will be implemented on straight sections of Skyway Stage 3 starting Jan. 20, 2025. These adjustments follow a comprehensive study conducted by the company’s traffic safety managers,” said the company in a release.

“This change will make travel on NAIAX and Skyway Stage 3 faster and more efficient for everyone,” said SMC Chairman and CEO Ramon S. Ang. “We have carefully studied this to make sure that it benefits motorists while prioritizing safety.”

He added, “This also complements the ongoing reconfiguration of exit plazas at NAIAX, which should allow for less congestion and help improve motorists’ experience on the expressway.”

Mr. Ang stressed that the 60-kph speed limit will continue to be enforced for all motorists on curved sections of both expressways. “This is to maintain safety, as we do not want to put any motorist at risk of accidents due to miscalculation or oversteering, especially where there are sharp curves, given the limitations to the design of both the NAIAX and Skyway 3,” he explained.

The executive shared that right-of-way issues during the construction of NAIAX and Skyway Stage 3 forced redesigns of some sections and even a number of access ramps due to very limited space. As a result, portions of both expressways have sharp curves where motorists need to slow down.

To ensure compliance, Mr. Ang said traffic patrollers equipped with radar speed guns will continue to monitor and issue citations to motorists caught violating the speed limits. All traffic patrollers are deputized by the Land Transportation Office (LTO) to apprehend erring motorists at exits, confiscate their drivers’ licenses, and issue temporary operator’s permits.

“We appeal to our motorists to observe speed limits at our expressway facilities for the safety of all,” Mr. Ang concluded.

NAIAX is the elevated toll road that connects the Skyway System to the three passenger terminals of NAIA, and other key areas such as Entertainment City, Macapagal Boulevard, Sucat Road in Parañaque City, and the road network to Cavite province.

On the other hand, the 18-km Skyway Stage 3 connects Balintawak, Quezon City, and NLEX to the Skyway System at Buendia Ave. in Makati and the South Luzon Expressway at Alabang, Muntinlupa City. Stage 3 also features key exits in the cities of Manila, San Juan, and Caloocan, providing alternative routes to these areas.

Multisectoral efforts to broaden access to medicines

ALEXANDER GREY-UNSPLASH

As an archipelago of over 7,000 islands, the Philippines faces considerable obstacles in providing equitable access to healthcare including medicines. Universal health coverage can only be achieved when there is access to safe, effective, and quality healthcare, including medicines, according to the World Health Organization (WHO).

Takeda Healthcare Philippines organized the Access to Medicines Summit with the aim of identifying challenges and co-creating solutions to achieve sustainable and equitable access to medicines in the country. Themed “Building Bridges: A Blueprint for Collaborative and Innovative Access to Medicines,” the two-day summit brought together 206 stakeholders from the government, the healthcare sector, non-governmental organizations, patient advocacy groups, and the pharmaceutical industry.

Based on the insights during the summit, Takeda created “Charting a course for sustainable and equitable access to medicines in the Philippines: Proposed roadmap to implementation.” The roadmap discusses government, civil society, and NGO initiatives to address barriers to healthcare and medicines access within the framework of four focus areas for access. These areas for access are the patient journey, health education, advocacy, and supply chain.

As part of the Universal Health Care (UHC) Act, which mandates structural and functional changes in health financing, service delivery, and governance with the goal of achieving UHC, the Department of Health (DoH) is implementing the agency’s medium- to long-term Eight-Point Action Agenda, Para sa Healthy Pilipinas 2023-2028. The action agenda aims to improve health outcomes, strengthen health systems, and enhance access to all levels of care in the country.

Some years ago, the government also established Malasakit Centers in general hospitals to improve access for indigent patients. At these centers, financially incapable patients can conveniently request special assistance from government agencies, charities, and patient advocacy groups in one place.

Beyond the initiatives implemented by the central government, there are also regional schemes for local populations. The Provincial Government of Pangasinan, for example, is implementing the Kalusugan Karaban (Health Caravan) initiative, which delivers mobile health services, including free medical consultations and laboratory services, to remote areas in the province.

After determining that hospital re-admissions are driven by patients not completing courses of medication, the Eastern Visayas Medical Center is implementing Project Tambal (Take-Home Medications Benefit Assistance Link), which provides patients with a complete course of medication for free upon their discharge from hospital.

Public-private partnerships can also provide innovative solutions for expanding and improving access to healthcare and medicines. Baguio City Mayor Benjamin Magalong signed a memorandum of understanding (MoU) with the Pharmaceutical and Healthcare Association of the Philippines (PHAP) aimed at accelerating the implementation of Access to Medicines programs of PHAP members and building a strong ecosystem to broaden healthcare access.

Implementation of the MoU began with Project Genesis, a health-profiling study of the healthcare status, patterns of healthcare use, medicine access, and expenditure of 1,000 households in Baguio City.

The Philippine Pharmacists Association is implementing its Immunizing Pharmacist Certification Program, which provides training to pharmacists in administering vaccines to broaden access to vaccines in the country. To date, more than 1,200 pharmacists have been certified through the program.

In Quezon City, healthcare information technology company MedProjects is collaborating with local healthcare providers to pilot the Health Care Information System, a secure, cloud-based health IT system. The pilot program has led to increased patient access to data and patient empowerment, improved data management, and reduced work burden of healthcare providers.

Philanthropic programs implemented by both government and patient advocacy groups help enhance underprivileged patients’ access to healthcare and medicines. Since 1990, the Philippine Charity Sweepstakes Office (PCSO) has been implementing its Medical Assistance Program (MAP) which provides qualified patients with financial assistance, in partnership with government and private hospitals, health facilities, medicine retailers, and other partners.

Since 2016, Hemophilia Advocates Philippines (HAP) has assisted over 1,000 patients with the cost of 3,000 treatments for hemophilia, primarily through overseas charitable donations. However, customs duties and taxes on hemophilia medicines add to the financial burden of patients. HAP continues to advocate for a more sustainable source of funding for hemophilia care through the inclusion of hemophilia in the PhilHealth Z benefit packages.

Members of the Cancer Coalition Philippines, meanwhile, provides patients with access to cancer medicines through charitable donations.

The challenge of providing access to safe, effective and quality healthcare and medicines rests on multi-stakeholder initiatives and public-private partnerships committed to the same goal of improving the health outcomes of the people.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

Wilcon Depot expects strong sales growth

BW FILE PHOTO

WILCON DEPOT, Inc. is banking on improved consumption as the listed home improvement and construction supplies retailer expects a positive financial performance this year.

“Our outlook is always positive. We have nowhere to go but really grow. Of course, we don’t have control over the external factors, but we see some improvements in all the headwinds that have been happening in the past year,” Wilcon Chief Operating Officer Rosemarie B. Ong told reporters on the sidelines of an event in Taguig City last week.

“Hopefully, 2025 will be a better year for us. Once consumption improves, that will stimulate everything,” she added.

Ms. Ong said Wilcon is looking to open more stores this year, without disclosing specific figures.

The company operates two store formats, consisting of the traditional depots and the smaller Do-It-Wilcon stores.

“We will still continue to expand because we see a lot of opportunities in other areas where we are not present,” she said.

In December last year, Wilcon opened its 100th store, located in Lubao, Pampanga. The company reached the milestone a full year ahead of the company’s 2025 target.

Ms. Ong said Wilcon is also renovating its legacy stores to improve the customer shopping experience.

“What we’re doing now is we’re trying to improve the legacy stores. Our focus is really to renovate and to be more adaptive to consumer behavior, how we can make their shopping experience more seamless, more convenient, and more comfortable,” she said.

For the first nine months of 2024, Wilcon recorded a 22.3% decrease in net income to P2.12 billion as net sales shrank by 1% to P25.68 billion.

The company attributed the decline to the persistent softness of demand for major home improvement and finishing construction supplies as well as delayed construction projects due to bad weather.

It added that expansion-related expenses hampered the company’s net income.

Wilcon shares were last traded on Jan. 17 at P9.89 per share. — Revin Mikhael D. Ochave

TikTok’s purveyors of creams and candies under threat from US ban

NEW YORK — TikTok’s Sunday shutdown in the US poses the biggest threat to the universe of small- and medium-sized firms and so-called influencers who depend on the short-form video site for their livelihood, while big brands are expected to move to other sites.

TikTok says its US site generates billions for businesses selling candies, beauty products, clothes ,and other consumer goods. But now, that economy is under threat. The Supreme Court on Friday unanimously upheld the law banning TikTok in the United States on national security grounds ahead of a blackout this weekend.

After the ruling President-elect Donald Trump said he would make a decision on TikTok, without providing details.

As a marketing tool for businesses, Bytedance’s TikTok generates revenue for itself, and for many of its users and merchants, through sponsorships and by collecting fees on sales.

Many TikTok users are paid to be brand ambassadors for companies, selling merchandise and affiliate partnerships where users are paid commissions by companies when audiences purchase items linked on their social profiles. TikTok also compensates some creators for making videos.

Those who receive revenue from TikTok also include startups, consumer companies, and bloggers cashing in on the platform’s massive reach of up to 170 million Americans.

For example, small- and medium-sized food and beverage businesses, which saw revenue increase by $4.1 billion in 2023 from marketing and advertising on the app, stand to lose the most, according to estimates by economic advisory firm Oxford Economics. That data was commissioned by TikTok.

TikTok CEO Shou Zi Chew said in a video posted to the app on Friday that seven million American businesses earn a living on the platform.

For Mama V’s Candy, TikTok Shop, the e-commerce arm of Bytedance’s video platform, changed the trajectory of the business, said owner Valerie Verzwyvelt.

“We have pretty much stayed viral since the beginning of the TikTok shop launch last year,” said Ms. Verzwyvelt. The company, “which sells extremely sour candies,” made $6 million in 2024 and has sold close to 300,000 units on the app, she said.”

“We are on our second expansion,” she said, a decision the Pineville, Louisiana-based company made before the reality of the Jan. 19th deadline set in. “I have to rebuild my business now.”

Sven Greany, co-owner of California-based independent beauty brand Simply Mandys, said that a TikTok ban would bring his business to a “screeching halt” after a record holiday shopping season.

Simply Mandys made more than $20 million in sales in 2024 on TikTok Shop with the help of livestreaming and Mr. Greany said he never fretted the app’s ties to China. Ninety-five percent of the company’s total sales come from shoppers on the platform, he said.

However, the company has plans to shift its marketing to Instagram once TikTok is no longer available.

But TikTok’s privacy policy blocks sellers from accessing shopper e-mails, addresses, and other information that could be useful for marketing outside of the platform. Essentially, if TikTok disappears, so do Simply Mandys’ customers, Mr. Greany said.

Other businesses were holding sales and dropping prices to clear out inventory in the event that traffic to their shops would come to an abrupt end on Sunday.

But that was not stopping some influencers from recommending products as they looked to cash out ahead of the ban.

“These TikTok shops are mass ‘clearancing’ their products in anticipation of the ban, so I’m linking some clearance products that I love for skincare,” one user told her 65,000 followers.

Beyond commissions, a TikTok influencer with 10,000 to 100,000 followers can potentially earn $2,000 per brand campaign, according to Lithuania-based influencer marketing agency Billo. For some of TikTok’s top US creators, the entirety of their income will come to a halt, while the major companies they’ve partnered with pivot to other platforms, such as YouTube or Meta’s Instagram.

Oxford Economics said that small- and medium-business-activity on TikTok contributed $24.2 billion, or a small sliver of overall US gross domestic product (GDP) in 2023, while supporting 224,000 jobs. Reuters could not independently verify those estimates.

Yuriy Boykiv, chief executive of e-commerce consultancy Front Row, said his clients made contingency plans to shift their marketing spending to other platforms which have similar short-form videos including Instagram and YouTube.
“Every client has known about this possibility of TikTok going away since April of 2024, so everybody has done some preparation,” Mr. Boykiv said. Front Row’s clients include Procter & Gamble’s haircare brand Ouai and LVMH’s Sephora, according to its website.

“We go where our community is and right now that includes TikTok. If they shift to other platforms in the future, we’ll be right there with them,” Kory Marchisotto, chief marketing officer at e.l.f. Beauty, said in a statement to Reuters.

Mitchell Halliday, the founder and creative director of British beauty brand Made By Mitchell, which launched on TikTok Shop US at the end of August, started selling on TikTok Shop in the UK in 2022 and became the first British beauty brand to hit $1 million in sales in one day on the platform.

“TikTok is the hub of beauty nowadays. It used to be YouTube, then it was Instagram, and now it is TikTok,” Mitchell Halliday said. — Reuters

How PSEi member stocks performed — January 17, 2025

Here’s a quick glance at how PSEi stocks fared on Friday, January 17, 2025.

The Philippines’ 20 Most and Least Profitable Companies in 2023

The 2024 edition of BusinessWorld Top 1000 Corporations in the Philippines contains the country’s largest companies with a combined net income of P2 trillion in 2023. This infographic shows the 20 companies with the best and worst bottom lines in 2023.

The Philippines’ 20 Most and Least Profitable Companies in 2023The BusinessWorld Top 1000 Corporations in the Philippines can be purchased directly by reaching out to BusinessWorld’s Circulation Department at (+63 2) 8527-7777 locals 2651 to 2654 or via e-mail at circ@bworldonline.com. The portable document format (PDF) version will also be available for purchase at https://bworld-x.com/.

Market to remain cautious with Trump in focus

The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

PHILIPPINE SHARES may remain weak this week as market sentiment stays cautious, with US President-elect Donald J. Trump set to take office on Monday and amid the absence of fresh catalysts.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) rose by 1.38% or 86.60 points to 6,352.12, while the broader all shares index increased by 0.76% or 27.95 points to 3,703.73.

However, week on week, the PSEi fell by 2.22% or 144.20 points from its 6,496.32 finish on Jan. 10, marking its second straight weekly decline.

“Local equities tracked regional peers, succumbing to profit-taking ahead of Mr. Trump’s inauguration. Shaky global capital markets were gripped by politico-economic anxiety,” online brokerage firm 2TradeAsia.com said in a market note. “Apart from uncertainties in trade, immigration, and taxation, the overall well-being of the US economy has been sending pain signals to the rest of the globe.”

“The local market has turned more bearish as it extended its decline. At the same time, the market has broken below the 6,400 level, which previously served as a support line,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

The week saw the benchmark index fall to the 6,200 level twice as the release of key US inflation reports caused markets to recalibrate their Federal Reserve policy easing expectations.

On Thursday, the PSEi sank to 6,265.52, which was its lowest close in nearly seven months or since it ended at 6,158.48 on June 21, 2024.

For this week, Mr. Trump’s inauguration will likely be a key source of leads for the market, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“We still expect the cautious atmosphere to remain in the local bourse amid the lack of fresh leads. Investors are expected to wait for new catalysts. Until then, cues are expected to come from other financial markets,” Mr. Tantiangco said.

“We may also see episodes of bargain hunting given that the local market is still at attractive levels, fundamentally speaking,” he added, putting the PSEi’s support at 6,150 and resistance at 6,400.

For its part, 2TradeAsia.com placed the market’s support at 6,000 and resistance at 6,500.

Mr. Trump arrived in the Washington area on Saturday evening for a celebration of his return to power, Reuters reported.

In the Capitol Rotunda, Mr. Trump will be sworn in at 12 p.m. ET (1700 GMT) then deliver an inaugural address, a speech that typically sets the tone for the president’s four-year term. He told NBC News the theme would be “unity and strength, and also the word ‘fairness.’”

Once he returns to the White House on Monday afternoon, Mr. Trump is expected to begin signing dozens of executive orders and directives to crack down on migration, boost US energy production and other priorities. — Revin Mikhael D. Ochave with Reuters

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