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LTO office opens in Robinsons Galleria Cebu

THE Land Transportation Office (LTO) Cebu City District Office recently opened in Robinsons Galleria Cebu.

The LTO office is part of the Robinsons Malls Lingkod Pinoy Center at level 4 of the mall. It is open 10 a.m. – 7 p.m., Mondays to Fridays.

Services at the LTO office include driver’s license application and renewal, student permit application, and registration and renewal of privately owned vehicles.

San Miguel plans plastic-made bike lane projects with local governments

SAN MIGUEl Corp. (SMC) is hoping to work with local governments and its so-called “technology partners” to build bicycle lanes made of recycled plastics, it said in a statement on Monday.

SMC is also hoping to use recycled plastics for road projects “someday.”

“But development is still considered to be in the early stages, considering the need for continuous testing to determine its long-term viability,” it noted.

SMC President and Chief Operating Officer Ramon S. Ang said: “It has almost been a year since we started our plastic road initiative and so far, our pilot site has held up very well. It’s in our logistics facility—used heavily everyday by large vehicles with heavy loads. Very soon, I think we can graduate it for light public use, specifically, for bicycle lanes.”

The Bayanihan to Recover as One Act (Bayanihan II), which was signed by President Rodrigo R. Duterte on Sept. 11, set aside P1.3 billion for the development of accessible sidewalks, protected bicycle lanes, and promotion of active transport, according to the Department of Finance.

The Department of Transportation partnered with Metropolitan Manila Development Authority, Department of Health, and Department of Public Works and Highways to construct protected bike lanes “to connect major roads, residential areas, and high-volume commuter areas to major medical facilities.” — Arjay L. Balinbin

Disney UK ad pays homage to the Pinoy Christmas

DISNEY UK has launched a Christmas ad that not only has all the hallmarks of a tearjerker holiday ad, but also pays homage to the Filipino Christmas and diaspora while supporting the Make-A-Wish Foundation.

The three-minute ad, called “From Our Family to Yours,” starts in a town in the Philippines in 1940 where a young girl is given a Mickey Mouse doll by her father.

The opening scene would be familiar to Filipinos as the town is decked in colorful parols or Christmas lanterns. The girl also greets her father with a mano — the sign of respect given to an older person by bringing the back of their hand on one’s forehead.

The ad then moves on to 2005, to a snowy town in the United Kingdom when the girl is now a lola or grandmother. She gives her treasured Mickey Mouse doll to her granddaughter while together they make a parol.

The ad skips forward to the future where the granddaughter, now an adult,  decides to repair the well-worn Mickey Mouse doll as a present to her lola and decorates the house with parol to bring the lola back to her younger days celebrating Christmas in the Philippines.

While highlighting some Filipino Christmas traditions, the ad also put the spotlight on the Filipino diaspora, seeing that the young girl’s family is now in the UK. According to the Commission on Filipinos Overseas, there are more than 10 million Filipinos living outside the country.

Disney UK is also celebrating a partnership with the Make-A-Wish Foundation by selling the vintage-inspired Mickey Mouse soft toy featured in the ad campaign. The toy is available for purchase at Disney Stores and shopDisney across Disney Europe, Middle East, and Africa. Twenty-five percent of the retail price of every toy purchased until April 29, 2021 will be donated to the Make-A-Wish organizations to help grant wishes for children.

The Make-A-Wish Foundation is a non-profit organization founded in the United States that helps fulfill wishes of children with critical illness between the ages of 2 ½ to 18.

Those who want to support the Make-A-Wish Foundation can also do so by purchasing and downloading the charity single “Love is a Compass,” sung by English singer Griff, which is featured in the ad. — ZBC

AUB income steady at end-Sept. on increased loan loss provisions

ASIA United Bank Corp.’s net income was steady in the first nine months as it continued to ramp up its loan loss reserves. — BW FILE PHOTO

ASIA UNITED BANK Corp. (AUB) booked a steady net income in the first nine months of the year as it increased its loan loss reserves amid the coronavirus pandemic.

AUB posted a net income of P3.8 billion at end-September, steady from the same period a year ago, it said in a disclosure to the local bourse on Monday.

The bank’s net interest income grew by 17% to P8.1 billion in the period from P6.9 billion a year ago. Loans and receivables increased by 4% to P165.4 billion from P158.6 billion, while its nonperforming loans (NPL) ratio stood at 2.2%. NPL coverage was at 96.3%.

Loan loss provisions reached P3 billion or four times bigger than the P693 million allocated in 2019. The bank attributed this to the “uncertainty in the economy brought about by the pandemic.”

Total deposits also went up by 4% to P232 billion from P223 billion on the back of a higher volume of low-cost current account, savings account or CASA deposits.

Its net interest margin stood at 4.3%.

Meanwhile, non-interest income jumped by 50% to P3.4 billion in the first nine months from P2.3 billion in the previous year on the back of higher trading revenues.

AUB’s operating income from its core businesses came in at P11.5 billion in the nine-month period, 25% higher year on year.

Its assets totaled P290.1 billion as of September, higher than the P271.2 billion recorded in the comparable year-ago period.

“Our current position and utmost priority lies within the balance of running the business while ensuring the safety of both our people and our customers.  These times may be challenging, yet AUB’s core business remains fundamentally strong” AUB President Manuel A. Gomez was quoted as saying.

AUB shares closed at P44.10 apiece on Monday, down by five centavos or 0.11% from its previous finish of P44.15 each. — KKTJ

Keepr Storage PH taps Project Assistant

ENTREPRENEUR ANNA Moncupa turned to Project Assistant, a company that provides digital solutions to startups and enterprises, when she was looking to start her business Keepr Storage PH.

Project Assistant helped create an app for Keepr Storage PH, which allows users to access a personal storage service from a mobile device.

In a statement, Ms. Moncupa said he picked Project Assistant over dozens of developers because it provided world-class quality.

Launched in 2011, Project Assistant provides a host of tech solutions such as comprehensive web marketing, design, branding, and mobile app development. It helped entrepreneurs turn their ideas into actual websites and mobile apps.

Keepr provides users in Metro Manila with flexible storage solutions that can be easily accessed on both Android and Apple devices.

How PSEi member stocks performed — November 9, 2020

Here’s a quick glance at how PSEi stocks fared on Monday, November 9, 2020.

Meralco help restore power in typhoon-hit areas

The Manila Electric Company (Meralco), along with its social development arm One Meralco Foundation (OMF), joined the Power Restoration Rapid Deployment ( PRRD)Task Force Kapatid 2020 early Saturday morning to help expedite the restoration of electricity service in areas severely battered by super typhoon Rolly.

Meralco deployed a 206-strong contingent of engineers, linemen, and support personnel to help in the power restoration in Albay, Catanduanes, and parts of Camarines Sur. 65 of them will be helping the National Grid Corporation of the Philippines (NGCP) in its restoration efforts in Bicol.

Meralco is closely coordinating with the Department of Energy (DOE), National Electrification Administration (NEA), Philippine Rural Electric Cooperatives Association Inc. (Philreca), and the

PSE index ends flat ahead of 3rd quarter GDP data

By Denise A. Valdez, Senior Reporter

PHILIPPINE SHARES closed flat on Monday as investors were on wait-and-see mode ahead of the release of third quarter gross domestic product (GDP) data and amid post-election developments in the United States (US).

The benchmark Philippine Stock Exchange index (PSEi) inched up 0.16 point or less than 1% to close at 6,685.85, while the broader all shares index climbed 16.40 points or 0.41% to end at 3,961.12.

The index opened the session at 6,665.08 and posted losses throughout the day, hitting an intraday low of 6,619.59. It started to pick up in the last minute of trading to close at its best showing for the session.

“Buyers were mainly on the sidelines, despite the rally in other Asian markets. Investors may be waiting for developments on the status of the global economy as well as the political situation in the US before deciding whether to make a move in the market,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

Most Asian stocks were recording gains at the PSEi’s close on Monday following the election of Joe Biden as 46th US President over the weekend.

“The market closed marginally higher as investors were cautiously optimistic after the US Presidential election concluded… Despite this, market breadth remained positive as traders speculated on which issues would perform well during the last quarter of the year,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message.

Also a key driver in Monday’s market movement was third-quarter GDP data which the government is scheduled to release on Tuesday. A BusinessWorld poll of 19 economists showed an expected GDP contraction of 9.2%, improving from the downward-revised 16.9% decline in the second quarter.

Most sectoral indices ended Monday’s session in green territory: mining and oil rose 249.70 points or 3.15% to 8,153.71; industrials grew 168.26 points or 1.89% to 9,028.59; property added 37.13 points or 1.16% to 3,232.41; services picked up 5.70 points or 0.37% to 1,517.84; and financials climbed 2.94 points or 0.23% to 1,283.11.

The holding firms sub-index was the only one that recorded a loss, sliding 89.38 points or 1.26% to close at 6,953.35 on Monday.

Value turnover stood at P8.02 billion with 1.71 billion issues switching hands, down from P10.08 billion with 4.08 billion issues in the last session.

Advancers outnumbered decliners, 131 against 83, while 43 names ended unchanged.

Foreign investors returned to selling on Monday, posting net outflows of P394.7 million against the net foreign buying of P453.57 million seen on Friday.

“6,900 may be considered the next resistance level, while 6,400 is where support may be pegged at,” Mr. Pangan said.

“The market may move higher in the coming days as the sentiment improves,” Mr. Mangun added.

Peso climbs versus the dollar ahead of GDP data

THE PESO strengthened versus the dollar on Monday as the market expects the economy to have rebounded in the third quarter from its double-digit contraction in the April to June period.

The local unit closed at P48.145 versus the dollar on Monday, rising by 7.5 centavos from its P48.22 finish on Friday, data from the Bankers Association of the Philippines showed.

The peso opened Monday’s session at P48.15 against the greenback and reached an intraday high of P48.11. Meanwhile, its weakest showing for the day was at P48.18 versus the dollar.

Dollars traded declined to $679.3 million on Monday from $779 million in the previous session.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso went up as the market expects a smaller economic contraction in the third quarter.

“Peso was stronger a day ahead of the latest third-quarter GDP (gross domestic product) data, which is expected to improve from the record contraction of -16.9% year-on-year in the second quarter,” Mr. Ricafort said in a text message.

A trader said in an e-mail on Monday that a better economic performance will increase demand for peso.

The Philippine economy is expected to have declined in the third quarter, though at a slower pace than the previous three-month period amid relaxed lockdown restrictions, economists said.

A BusinessWorld poll of 19 economists yielded a median estimate of a 9.2% decline in gross domestic product (GDP) in the third quarter, easing from the downward-revised 16.9% plunge in the second quarter.

If realized, this will bring the GDP contraction in the first three quarters of 2020 to 8.9%.

The government expects the economy to shrink between 4.5% and 6.6%, or an average of 5.5%, this year.

The Philippine Statistics Authority will report third-quarter GDP data on Tuesday.

Mr. Ricafort sees the peso moving from P48.08 to P48.18 versus the dollar, while the trader expects a range of P48 to P48.20. — KKTJ

Moody’s Analytics downgrades PHL growth outlook for 2021

MOODY’S ANALYTICS downgraded its growth outlook for the Philippines for 2021 to 6.2% from its 7.8% estimate issued last month, citing the government’s tepid fiscal response which may result in a recovery weaker than it could have been.

“The 2021 forecast has been revised downward because there has been a smaller fiscal policy response than we had previously assumed,” Steve Cochrane, chief Asia-Pacific economist at Moody’s Analytics, said in an e-mail Monday.

Republic Act (RA) No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II) allocated an additional P165 billion for the country’s pandemic response. It followed the P275 billion provided by RA 11469 or Bayanihan I to address the economic crisis. In total, the government’s fiscal response is equivalent to about 3.9% of gross domestic product (GDP), according to a policy tracker maintained by the International Monetary Fund.

Meanwhile, Moody’s Analytics upgraded its 2020 GDP outlook to minus 8.2%, against the earlier forecast of minus 9.2%, citing some improvements seen in manufacturing and trade.

“Manufacturing is rebounding a little better than expected. Further, exports, which had been following an uncertain path, improved quite a bit in September, and with trade picking up globally and in Southeast Asia, trade should add some support to economic growth,” Mr. Cochrane said.

The Monthly Integrated Survey of Selected Industries reported that factory output, as measured by the Volume of Production Index, contracted by 8.4% year on year in September, according to the Philippine Statistics Authority (PSA). This represented an improvement from the decline of 9% in August.

Merchandise exports rose 2.2% to $6.22 billion in September following a 12.8% year-on-year drop in August, the PSA said. This is the first month of expansion in exports since the 2.8% seen in February, before the coronavirus disease 2019 (COVID-19) outbreak became a pandemic.

In the third quarter, Moody’s Analytics said GDP likely contracted 6%, a less drastic decline than the minus 9.2% median estimate from a BusinessWorld poll of 19 economists last week. In the second quarter, which included the weeks when the lockdown was at its most strict, the contraction was a record 16.5%.

Mr. Cochrane said the easing restrictions will pave the way for the economy to gradually pick up.

“We should be able to characterize the economy as beginning its recovery some time in the third quarter, perhaps in late August. So far, the fourth quarter looks like it is continuing the recovery, and 2021 will look better as well.”

The government expects the economy to contract between 4.5% and 6.6% before bouncing back with growth of 6.5% to 7.5% next year.

The PSA will report third-quarter GDP data on Tuesday, Nov. 10. — Luz Wendy T. Noble

Typhoon damage to power co-ops hits P369.821M

THE estimated cost of damage sustained by electric cooperatives due to Typhoon Rolly (international name: Goni) has climbed to P369.821 million, according to the National Electrification Administration (NEA) on Monday.

It said 1.3 million affected households or 62.68% have had their power restored, leaving some 780,597 households still without access to electricity, many of them in the Bicol region.

The NEA reported that power has been restored in 14 municipalities in Camarines Norte and Sorsogon as of Monday afternoon.

The power situation in Masbate, including Ticao Island, and the Calabarzon Region is normal, according to the NEA.

In a separate advisory, the National Grid Corp. of the Philippines said that its transmission lines and facilities are operating normally.

METRO MANILA’S DISTRIBUTION UTILITY
Asked about the impact of Typhoon Rolly on Manila Electric Co., Meralco Head of Utility Economics Lawrence S. Fernandez said power supply and demand both fell.

“For a few days, both supply and demand were affected. They were both reduced by Typhoon Rolly pero after that, nag normalize (but after that, they have since normalized),” Mr. Fernandez said in a briefing Monday.

“On the supply side, there were several power plants that were affected… Nagbaba sila ng output (they reduced output) in preparation for the arrival of the typhoon. On the demand side, bumaba rin sa Meralco system (it also fell within the Meralco system) for a few days as Typhoon Rolly passed through the Meralco service area,” he added.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc., Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

Pandemic restrictions on restaurants seen driving more coffee consumption at home

THE constraints imposed by the pandemic on restaurant operations will force more consumers to prepare coffee at home, providing an opportunity for brands to sell more via groceries, according to Fitch Solutions Country Risk & Industry Research.

Consumers are also looking to spend less, limiting their purchases to essentials like groceries, which will make supermarkets the new battleground for coffee companies competing for space in their customers’ shopping carts, Fitch Solutions said.

“Within the coffee segment, this will play out with the substitution of on-trade coffee with coffee bought through retail channels,” it said in a report Monday.

The changes in consumer behavior will benefit not only instant coffee makers but also producers of premium coffee as higher-income individuals opt out of cafes, Fitch Solutions added.

“Between 2020 and 2024, coffee consumption is projected to increase from 3.9 kilograms per capita in 2020, to 5 kilograms by 2024,” it said.

Prospects for the coffee industry are also supported by estimated household spending on coffee of about $352 in 2020, much higher compared with Malaysia ($240) and Indonesia ($137).

Coffee is widely consumed across all income brackets, with instant coffee accounting for about 90% of the market.

“Breaking this down, coffee is the most popular non-alcoholic drink purchased through the mass grocery retail channel, accounting for approximately 43% of total non-alcoholic drinks spending. This is followed by fruit and vegetable juices, which account for a further 31%,” Fitch Solutions said.

By 2024, coffee as a proportion of total non-alcoholic drinks spending is expected to grow to 44%.

The country’s large young adult population could boost the outlook of spending on coffee products, it said. More than 35.1 million or nearly a third (32%) of the population are aged between 20 to 39.

“We classify this group as the trendsetting generation, who are earning incomes and have larger discretionary spending levels. These consumers are more likely to spend on more speciality and more premium products,” Fitch Solutions said.

It noted the growing middle-income population of the Philippines — those with annual disposable income of more than $10,000. It estimated this population at 4.5 million households, which Fitch Solutions expects to rise to 8 million by 2024.

“This target market will be key to supporting sustainable growth in spending on coffee products over the next five years,” it said. — Luz Wendy T. Noble

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