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Cebu Pacific working with gov’t for vaccine delivery, Cebgo CEO says

CEBU PACIFIC said it is coordinating with the government to participate in the transport and delivery of the coronavirus vaccines.

“Cebu Pacific is working with the government to make sure that both public and private sectors are coordinated in this national endeavor,” Cebgo President and Chief Executive Officer Alex B. Reyes said in a statement to BusinessWorld on Feb. 11.

“We have been carrying vaccines for some time now, whether it be for polio or flu, throughout our network,” he noted.

The budget carrier said it is ready to support “fast and efficient” delivery of the vaccines to large and small cities.

Both Philippines AirAsia, Inc. and Philippine Airlines have also expressed interest in the distribution of the vaccines.

Philippines AirAsia recently applied for regulatory approval as a carrier of dangerous goods.

Philippine Airlines participated in the recent simulation exercise on vaccine handling organized by the National Task Force on Vaccine Rollout.

Cebu Air, Inc., the listed operator of Cebu Pacific, suffered a net loss of P14.69 billion for the first nine months of 2020 from the P6.77-billion profit it generated in the same period in 2019.

The company is pushing through with a P12.5-billion share sale from March 3 to March 9, according to its announcement last week.

Cebu Air said it intends to use the net proceeds from the offer to strengthen its balance sheet “by providing liquidity to address its financial liabilities, including P4.805-billion allocation for repayment of an advance by JG Summit Philippines Ltd.; P3.913-billion budget for aircraft operating lease payments due in 2021; P3.328 billion for principal debt repayments, which is also due this year; and P0.384-billion allocation for general corporate purposes, “which are primarily for passenger refunds in case cash inflows from operations become insufficient as a consequence of the pandemic’s impact on health and travel-related concerns.” — Arjay L. Balinbin

Rates of T-bills to move sideways on RTB

THE RATES of Treasury bills (T-bills) to be auctioned off on Monday will likely move sideways due to the ongoing offering of three-year retail Treasury bonds (RTBs).

The Bureau of the Treasury (BTr) is looking to borrow P20 billion via the T-bills on Monday: P5 billion each from the 91- and 182-day debt papers and P10 billion via the 364-day securities.

A bond trader said the yields on the short-term debt will move sideways or dip by 5 basis points (bps) as the market continues to monitor the government’s ongoing RTB sale.

“The total volume issued for the RTB will be closely monitored so some investors may decide to place liquidity in shorter tenors such as T-bills for now,” the trader said via Viber over the weekend.

ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro likewise said the auction will continue to see strong reception but total bids may come in lower than previous exercises as some investors may choose to subscribe to the three-year RTBs instead.

The Treasury last week hiked the volume of the T-bills it awarded as rates continued to decline across the board.

The BTr borrowed P24 billion via the T-bills on Monday, higher than its initial plan to raise P20 billion, after it accepted more non-competitive bids for the three-month and six-month papers.

Total tenders reached P95.35 billion, making Monday’s offering nearly five times oversubscribed. However, this was smaller compared with the P103.65 billion in bids seen during the previous week’s auction.

Broken down, the BTr raised P7 billion via the 91-day T-bills, more than the P5-billion program, as tenders hit P21.6 billion. The three-month papers fetched an average rate of 0.846%, down by 7.1 bps from the 0.917% seen previously.

The government also borrowed P7 billion from the 182-day papers versus the P5-billion plan, with bids reaching P29.834 billion. The average rate of the six-month papers went down by 11.6 bps to 1.094% from the previous week’s 1.21%.

Lastly, the Treasury made a full P10-billion award of the 364-day securities on the auction block out of total tenders worth P43.915 billion. The one-year instruments were quoted at an average yield of 1.446%, down 4.6 bps from the 1.492% fetched at the previous offering.

At the secondary market, the 91-, 182- and 364-day T-bills were quoted at 0.974%, 1.149%, and 1.432%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, the government sold an initial P221.218 billion in three-year RTBs during the rate-setting auction on Feb. 9 as total bids reached P284.183 billion.

The bonds fetched a coupon rate of 2.375%, 200 bps lower than the 4.375% rate quoted for the RTBs sold in February 2020. The offering is set to run until March 4, unless closed earlier.

“We expect demand to remain strong. Still too early to tell whether it will be able to surpass the previous 5yr RTB (RTB 5-13) as the largest issuance ever, but it has had a very strong start,” Mr. Liboro said via e-mail.

“Despite fears of rising inflation, the BSP (Bangko Sentral ng Pilipinas) remains unlikely to raise policy rates anytime soon and investors will continue to see the 2.375% coupon level as attractive given current levels and alternatives in the market,” he added.

The BSP kept benchmark rates unchanged at record lows at the first policy-setting meeting of the Monetary Board last Thursday to support the economy’s recovery.

The central bank maintained the overnight reverse repurchase rate at a record low of 2%. The lending and deposit facilities were likewise kept at 2.5% and 1.5%, respectively.

The BTr plans to borrow P110 billion from the local debt market this month: P80 billion via weekly auctions of T-bills and P30 billion from a Treasury bond offer. It canceled a previously scheduled bond auction for its RTB offering.

The government is looking to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — Beatrice M. Laforga

Mini opens pop-up store in Cebu

By Kap Maceda Aguila

AFTER HAVING forged a partnership with a new dealer principal in Cebu, Mini Philippines is looking to gain a firm foothold in the Visayas-Mindano region. Its push will start with the establishment of a pop-up store, which opened last Friday.

The 8,000-square-feet Mini facility on N. Escario Street Cor. Tojong Street, in Camptuhaw, Cebu City is operated by Mini AutoStudio Cebu, led by dealer principal Pancho Luzuriaga. AutoStudio Philippines Corp. acquired the Mini dealership in Cebu in late 2019.

Mr. Luzuriaga described the shop as a “memorable milestone,” and is structured differently from a typical pop-up showroom. It features a two-car display, a lifestyle area with Mini-branded items for sale, a lounge, and even a two-bay service center. Mr. Luzuriaga shared that it took six weeks to construct the showroom.

While admitting that it is “challenging to open during this time,” the entrepreneur acknowledged that they believe in the brand and their partners in Mini.

Mini Philippines and Autohub Group President Willy Q. Tee Ten said, “I’m happy to announce that Mini is here, still strong, and we’re going to take it to the next level. Our customers are our top priority, and they deserve only the best… This is an exciting new beginning for Mini AutoStudio Cebu. I can’t wait to see more Minis on the roads down south and the smiles they bring to Cebuanos.”

Meanwhile, Mini Philippines General Manager Jefferson Lizardo noted that all the five models of the UK brand will be made available in Cebu, and the company is looking at bringing in John Cooper Works variants as well.

Responding to a question from “Velocity,” Mr. Luzuriaga said the pop-up store will continue to remain up even when the main facility of Mini AutoStudio Cebu opens this year. The showroom will rise on Cebu Veterans Drive, Nivel Hills in Lahug.

In a release, Mini Asia Head Kidd Yam said, “Cebu is a dynamic and vibrant city, qualities that tie in perfectly with what Mini stands for — fun, passionate and spirited… I want to thank the Mini Philippines and Mini AutoStudio Cebu teams for their hard work in making this new facility a reality. Together, we look forward to once again connecting with our customers in the Visayas and Mindanao regions and offering them the exciting cars that they have come to love in a safe and conducive environment.”

The unbearable lightness of Uniqlo

IT’S ALL about lightness for Uniqlo’s Spring/Summer 2021 collection.

The Uniqlo U line features signature neutral tones and classic looks, with a focus on black and white. The company is also taking into consideration the new work-from-home setups with what it calls “transitional wear.”

“In fashion, effortless style is now mainstream because the boundaries between home and places of work or study have been blurred, making comfort even more important,” said the Japanese company in a press release. “On top of that, a rising interest in splitting time between living in cities during weekdays and in the countryside on weekends and the slow living movement have focused more attention on flexible style and more functional beauty in line with more adaptable work practices. Fabrics and textures for more active lifestyles and easy-care cleaning are imperative when choosing clothes.”

For this theme, Uniqlo is releasing a line of comfortable dresses, but also highlighting a wrinkle-resistant and low-maintenance rayon blouse. The U Crewneck T-shirt is also a star, thanks to its comfortable fit, and this will pair well with a line of jeans made with technology from Toray. The denim on the new jeans is designed to be light, stretchy, and wick away sweat.

Speaking of sweat, the sweat-wicking and cooling Airism line by Uniqlo, usually used for shirts, is expanding into linens: think cooler nights on Airism bedsheets. Ankle pants and soft Uniqlo sweats are also up for grabs, for wearing around the house.

INES DE LA FRESSANGE
The model turned designer Ines de la Fressange, who looked like a younger Coco Chanel, has again taken a page from her lookalike’s book. The Ines de la Fressange collaboration with Uniqlo is inspired by Deauville, the legendary seaside resort where Coco Chanel first found her footing. It was here that she opened her first boutique in 1913, aided by a loan from the love of her life, Arthur “Boy” Capel. According to Uniqlo’s release, the young De la Fressange, of aristocratic descent, holidayed there with her grandmother.

The result is a line in which elongated silhouettes featuring straight-lined skirts and dresses are the stars, made in a dusty palette designed to look like Deauville’s sea and sky. The collection incorporates a rich variety of the shirts that are essential to Parisian wardrobes. The range extends from casual 100% linen items to soutien collar twill shirts in translucent fabric and silk shirts with fine details. — JLG

Turnitin to upskill local university staff

TURNITIN Philippines is partnering with local universities to upskill staff in using its technologies in 2021.

The online plagiarism detection and educational feedback company set up its first Philippine office last March after operating in the country with a reselling partner for about seven years.

Turnitin Southeast Asia Head of Business Partnerships Jack Brazel said in an online interview on Thursday that local schools are enthusiastic about the technology.

“The challenge is what we’re going to have to help our partner universities with in 2021 is how do you roll out enterprise technology right across the university?” he said.

“The challenge is obviously there’s a lot of change to the end user — that being the lecturer and the student — and I think universities will need to come up with ways to upskill their staff to become more tech-savvy.”

Potential upskilling partnerships this year are the key advantage, he said, of moving from a reselling model to a direct service model in the country.

The move to the Philippines, he added, “signals our faith in the market. It signals the interest in I suppose the universities’ agenda — we can see them having a strong modernization agenda — and we wanted to come to the market to give them the best experience of Turnitin.“

Turnitin plans to release Gradescope, an artificial intelligence-based platform that can help instructors grade paper-based assessments online, in the Philippines.

“We all know that Filipinos struggle with their internet connection. And so this will allow students to do their work on maybe note pads, take a picture with their phone, and then upload it to the system perhaps when they’re back in a more effective internet area and then the teachers can mark it,” Mr. Brazel said.

Turnitin previously rolled out this platform in other countries, including Australia, the United Kingdom, and Singapore.

The company could continue to expand in the country, Mr. Brazel said, depending on customer growth. — Jenina P. Ibañez

Volvo makes child safety resource available online

ACCORDING to the World Health Organization (WHO), some 1.35 million people lose their lives in traffic accidents every year. Additionally, road traffic injuries are the leading cause of death for children and young adults ranging from five to 29 years of age.

Volvo said in a release that the disturbing statistic fuels its “passion for finding solutions to curb the number of road traffic injuries.” With an avowed goal that “no one should be seriously injured or killed in a new Volvo,” the company says that each vehicle it develops is designed with people in mind: drivers, passengers, other motorists, and even pedestrians.

Volvo Philippines makes available for free online the “Volvo Children & Cars Safety Manual,” an insightful guide that is also available on international Volvo portals.

In 1964, just a few years after Volvo had generously shared the three-point seat belt invention with the world in 1959, the company also began testing rear-facing child seats. Since then, it has progressively improved on safety technologies explicitly designed for children in cars. Today, Volvo has some of the most advanced and comfortable child seats in the world.

Backed by decades of safety research, Volvo underscores the importance of using child restraint systems appropriate to age, height, and weight. As a pioneer in child safety, Volvo Cars’ testing and clear installation guidelines for parents and caregivers are unequaled.

Said Adjunct Professor, PhD, and Senior Technical Leader for Injury Prevention at Volvo Cars Safety Center Dr. Lotta Jakobsson, “We understand that many people find child safety in cars a complex and sometimes confusing subject. We have focused for many years on communicating clear guidelines around how child seats should be used and the correct way to install them.”

Volvo’s unique approach to child safety has led to creating and carrying out tests based on real-life traffic situations. These tests enable Volvo to tailor car designs based on how each child seat performs in a real-life car environment. As a result of over 40 years of in-depth research, Volvo Cars strongly recommends using rearward-facing child seats for children up to the age of four.

“Children up to four need to travel rearward-facing in cars, simply because their neck is too weak to support the head. You, therefore, need to protect them. We need to communicate this message to everybody, so they understand the importance of having the children rearward-facing because if they end up in high-severity frontal impact, it’s a question of life and death,” concluded Dr. Jakobsson.

For more information on Volvo Child Safety, visit: https://www.volvocars.com/ph/why-volvo/human-innovation/future-of-driving/safety/child-safety.

Virtual front rows as New York kicks off digital fashion shows

NEW YORK — Fashionistas will be turning to their screens to see the latest designer trends this fashion week as the traditional autumn/winter catwalk calendar kicks off virtually in New York on Sunday.

With coronavirus disease 2019 (COVID-19) restrictions in place, the usual celebrity-packed front rows, snapping street photographers and exclusive parties are gone, replaced with virtual or, in a very few cases, socially distanced shows.

Designers will show more than 100 “pieces of content” from their autumn/winter 2021-2022 collections in a film, live event or lookbook, said IMG, which runs New York Fashion Week: The Shows.

“There’s a lot of hope coming out of this year and the past month with the momentum of (the US presidential) inauguration and the vaccine,” said April Guidone, global senior vice-president for marketing and brand strategy at IMG, in an interview.

“I think everyone has a hopeful outlook for the rest of the year but also excited to be able to show in any form that they can in creative ways.”

Brands such as The Blonds and Badgley Mischka will share video streams while big names Tommy Hilfiger and Ralph Lauren are absent from the show schedule. The few live events include shows by designers Jason Wu and Rebecca Minkoff, Ms. Guidone said.

“We’ve been working very closely with the governor and health officials to make sure that our protocols are in place,” she said, adding a new fashion week podcast would also debut.

Earlier this month the Council of Fashion Designers of America (CFDA) unveiled its American Collections Calendar, a renamed and expanded New York Fashion Week, with added presentations from US designers showing at later dates.

The fashion and luxury goods industry has been hit hard by the global pandemic with store closures and travel restrictions shrinking demand.

Worldwide personal luxury goods sales fell 23% to 217 billion euros ($262.42 billion) in 2020, the first drop since 2009, according to consultancy Bain.

“It’s been a tough time for everyone in the business. Fashion is all about looking good, and if no one is really looking at you there’s not much point. … Spiritually it’s a very difficult moment,” said Godfrey Deeny, global editor-in-chief of FashionNetwork.com.

“A number of younger designers sadly will go through the wall, but in a curious way the fact the season went digital helped a few of them because it’s cheaper somehow to shoot video in a studio or out in the street rather than stage a runway show.”

New York Fashion Week runs until Feb. 18. London will follow, also in a digital version. — Reuters

SMB weighs next move on P3.8-M disallowed refund

San Miguel Brewery, Inc. (SMB) is weighing its next move after the Court of Appeals (CTA) disallowed its appeal for a refund of P3,792,392.50, its parent firm said on Tuesday.

“SMB will either move for reconsideration or elevate the matter to the Supreme Court,” San Miguel Corp. (SMC) said in its clarification sent to the Philippine Stock Exchange.

The conglomerate clarified that it was SMB, its subsidiary, which is the party to the case at the appellate court and not the listed firm. It also said that the unit had yet to receive a copy of the decision.

It said the case emanated from CTA Case No. 9513, which is a claim for refund filed by SMB with the Bureau of Internal Revenue (BIR) in the total amount of P48,266,780.24, which it said represented “erroneous, excessive or illegal collection of excise taxes on its beer products.”

The collection covered the period from Jan. 1, 2015 up to Dec. 31, 2015.

“The BIR imposed excise taxes at the tax rate of P22.25 per liter when the tax imposed under Section 143 of the National Internal Revenue Code, as amended by Republic Act No. 10351, is only either P19.00 per liter or P22.00 per liter, depending on the net retail price of the product,” it said.

The company said that in a June 13, 2019 decision, the Special Second Division of the CTA partially granted SMB’s petition and ordered the refund of P44,474,387.74 while disallowing the amount of P3,792,392.50.

SMB then appealed the disallowed amount to the CTA En Banc, it said, while the BIR appealed the ordered refund.

SMC said that based on the CTA En Banc’s Feb. 4, 2021 decision that was posted on the court’s website, the June 13, 2019 decision was affirmed.

Note: this story has been updated to correct the name of the company party to the case — San Miguel Brewery, Inc.

LANDBANK books lower net income

STATE-RUN Land Bank of the Philippines (LANDBANK) saw a 7.57% drop in its net income last year amid the economic downturn caused by the coronavirus pandemic.

LANDBANK’s net earnings went down to P17.1 billion in 2020 from P18.5 billion in 2019, it said in a statement on Sunday.

The bank recorded P168.3 billion in capital, up 13% from the P149 billion recorded the year prior. Its net interest margin was at 3.16%.

On the funding side, its deposits grew by 17.4% to P2.093 trillion last year from P1.783 trillion in 2019.

The bank attributed the increase to the 41% expansion in investments to P983 billion from P695 billion.

Meanwhile, LANDBANK’s assets expanded by 16% to P2.362 trillion last year from the P2.033 trillion logged in 2019.

“LANDBANK posted marked growth in assets and deposits in 2020 — a record achievement given the widespread economic impact of the health crisis. We will build on these gains and continue along this path to better serve our priority sectors, especially small farmers and fishers, micro, small and medium enterprises and other key development players,” LANDBANK President and CEO Cecilia C. Borromeo was quoted as saying.

The lender’s return on assets was at 0.78% while return on equity was 10.8%.

LANDBANK is the conduit bank for social protection projects and lending programs of the government.

One of the bank’s priority areas is the agriculture sector. Its lending to the sector inched up by less than 1% to P237.62 billion in 2020 from P236.31 billion in 2019.

LANDBANK has 411 branches, 66 branch-lite units and 55 lending centers across the country. — B.M. Laforga

Foton PHL fortifies digital touchpoints

FOTON MOTOR Philippines, Inc. (FMPI) is adjusting to the needs of the new normal by strengthening its presence in the digital realm. The largest commercial vehicle manufacturer in Asia is bringing in “innovative platforms” that aim to better connect customers to the brand, while providing necessary information, quality services and swift assistance.

DIGITAL SHOWROOM
The newly introduced Foton Digital Showroom is an interactive platform accessible on mobile devices and computers. Customers may “walk around” and are afforded a 360-degree view of Foton commercial vehicles. Detailed specification sheets of the units are also linked in the tags, and can be downloaded for offline viewing. Interior and exterior beauty shots, as well as videos, are available as well. Two “showrooms” are available: Showroom 1 presents six units of the Traveler XL 19-seater, TransVan HR 16-seater, TransVan 13-seater, Gratour TM 300 MPV, Thunder 4×2 A/T and the Toano EX 11-seater. Showroom 2 features the Tornado M5.2C Dropside, F-Jeepney F29, Hurricane EST-M 4×2 Dump Truck, and the GTL 8×4 Dump Truck HR.

Visitors may access the showrooms through http://bit.ly/FOTONShowroom1 and http://bit.ly/FOTONShowroom2.

FOTON WEBSITE
The Foton website (www.foton.com.ph) gets a new look, along with more user-friendly features. The portal is now more aligned with the brand’s commitment to provide faster services and easily accessible communication lines. Foton Philippines says the new website plays a vital role in ensuring customer satisfaction by offering useful functions where visitor can check the latest news and promos, browse the complete vehicle lineup, get updates on after-sales programs and warranties, visit the virtual showroom, inquire about a vehicle, find the nearest dealer and even apply for a job.

FOTON PH MOBILE APP
The Foton PH Mobile App provides vital information and offers features and services all in one convenient portal. Launched this year, the interactive mobile application levels up on quality service; users can conveniently browse the latest news updates, prices, promos and reserve their Foton vehicle. Foton owners can also schedule a preventive maintenance service (PMS) appointment or get in touch with the nearest dealer. Users can even earn points and win exciting rewards through successful referrals, services and the purchase of parts. The Foton PH Mobile App is available for download from the Google Play Store and App Store.

For more information, call any Foton dealer or the Foton sales hotline at (0999) 999-9998. E-mail inq@foton.com.ph; follow FB/FotonPhilippines, IG/FotonPhilippines, and Twitter@FotonPH.

Shopee launches beauty page

SOUTHEAST ASIAN e-commerce platform Shopee has launched a dedicated page for all things beauty in Shopee Beauty, offering the “best deals from top make-up and skincare brands,” according to a company statement.

Among the brands available on the page are Dove, TRESemmé, Cream Silk, Organic Skin, Vice Cosmetics, Beauty Avenue, Senka, and Yves Rocher.

“We are proud to introduce Shopee Beauty as the Filipino’s one-stop destination for all things related to beauty. With the strong demand for make-up and skincare products in our platform, Shopee looks forward to giving our buyers a better buying experience by creating an avenue for them to discover new products and find the best deals from top beauty brands,” Ruoshan Tao, head of marketing at Shopee Philippines, said in a statement.

Shopee’s dedicated beauty page comes a year after competitor Lazada introduced a similar page called Beauty by LazMall.

Aside from the launch of the beauty page, Shopee also introduced a loyalty program, Shopee Loyalty, where users can enjoy a range of exclusive perks, vouchers, and deals every month when they shop more with Shopee. Membership is free and consists of four tiers. Shoppers can unlock higher tiers and enjoy bigger rewards by completing a certain number of orders within a month.

“We are excited to bring more joy and reward Shopee users better with Shopee Loyalty. Shopee has seen online shopping grow in importance for Filipinos in the past year, as more people turn to Shopee for their needs, from groceries to entertainment. Shopee Loyalty gives users more ways to save and have fun with Shopee as they shop online more, together with our in-app features, membership clubs, and shopping campaigns that users enjoy regularly. We look forward to helping users unlock more value with Shopee in the future,” Martin Yu, Shopee Philippines director said in a separate statement. — ZBC

Hog repopulation, ASF control funding set at P2.1B

THE EFFORT to restore the hog population and curb the spread of African Swine Fever (ASF) has been allocated a combined P2.1 billion, Agriculture Undersecretary William C. Medrano said.

As the government grapples with rising pork prices that is threatening to trigger another inflation crisis, the Department of Agriculture (DA) announced the hog industry revival measures in Batangas on Feb. 11, with Mr. Medrano saying that repopulation will initially receive P600 million and ASF control measures P1.5 billion.

Mr. Medrano said at the program launch that the repopulation program also includes the establishment of breeder farms and the modernization of the hog growing process.

“The program aims to accelerate the repopulation and recovery of the hog industry to ensure availability, accessibility, and affordability of pork and pork products,” Mr. Medrano said.

Agriculture Secretary William D. Dar said during the program launch on Feb. 11 that the ASF program needs a united effort from both the public and private sectors.

“I urge local government units, hog industry stakeholders, veterinary associations, universities and research institutions, farmers’ cooperatives and associations, and backyard and commercial hog raisers to join us in implementing stringent, sustainable biosecurity measures,” Mr. Dar said.

The DA has also set a budget of P800 million in transport subsidies for hog growers and traders to encourage the delivery of more hogs to Metro Manila public markets, thereby increasing supply and bringing down prices.

The DA also announced a P500-million lending program to encourage backyard and semi-commercial raisers in ASF-free areas to return to swine fattening and piglet production. The program offers zero-interest loans payable in three to five years.

Mr. Dar also said the Land Bank of the Philippines and Development Bank of the Philippines have allocated P15 billion and P12 billion, respectively, for lending to commercial hog raisers.

He added that the DA will tap insurance cover to compensate farmers for hogs culled due to ASF, paying out P10,000 each.

“The DA will continuously provide technical assistance in risk assessment, surveillance and monitoring of ASF at the barangay level, strict biosecurity implementation, and use of locally-developed molecular rapid test kit to support disease surveillance,” Mr. Dar said.

Mr. Dar also announced that the national food security summit has been penciled in for April 7 and 8.

“This is the time to bring ideas to the table. This is the time to cooperate. This is the time to understand the mix of interventions that we have put together,” Mr. Dar said. — Revin Mikhael D. Ochave