EU, US fashion retailers bet bras with wires and a splash of color will sell this spring

April 5, 2021 | 12:04 am

LISBON/CHICAGO — After a year of nesting in pastel-colored loungewear, shoppers are opting for styles with floral prints, feel-good slogans, and statement jewelry to jazz up working-from-home outfits as optimism makes a comeback in spring collections, designers and retailers told Reuters.

While neutral, comfortable clothing remains more popular than in a normal spring, retailers from Neiman Marcus to Walmart and Macy’s, Inc. reported growing sales of bright, optimistic color, flowy fabrics or dresses for the first time since the start of the pandemic as shoppers prepared for a return to normal life.

“We’re seeing a return to occasion dresses and even bras with wires,” Marie Ivanoff-Smith, fashion director at department store Nordstrom, told Reuters. “As it gets warmer and more people go outside, we thought people would really want to showcase optimism and joy with prints and vibrant colors.”

So far, ditzy floral prints are up 31% in Europe and 16% in the United States from last year, according to Heuritech, a data firm analyzing millions of pictures a day on social media and catwalks.

Colors seen in catwalks for spring and summer 2021 collections were vibrant pinks and bold blues — “an energizing source of inspiration to help carry us through,” the company said in a Feb. report. While vibrant colors and floral motifs are typical of spring styles, the difference this year is that fashion lines also include nude T-shirts and what Walmart’s head of fashion editorial, Alison Hilzer, called “slouchy cardigans.”

British online fashion retailer ASOS said in an e-mail that it noticed in recent weeks its customers were “into feel-good slogans, brighter colors, and floral accessories as the weather has started to improve and they start to get ready for the summer ahead.”

“While neutral tones are still prevalent, we’re excited to inject some much-needed optimism into our wardrobes with bright accents. We’re loving yellows and greens for (spring),” an ASOS spokesperson told Reuters in an e-mail.

“Bold colors, draping, and light fabrics created a perfect complement to spring with collections from Dior, Loewe, and Dries van Noten,” said Lana Todorovich, president and chief merchandising officer at luxury retailer Neiman Marcus.

“It’s clear that the trend is also about coming out of this, although it’s still a lot about comfortable garments,” H&M CEO Helena Helmersson told Reuters on Wednesday after the Swedish retailer reported earnings.

A ‘NERVE-RACKING’ PLANNING PROCESS
Still, planning has never been harder than this year, as designers used to finishing designs months and sometimes years ahead were forced to adjust collections and marketing in line with the fluctuating circumstances of the coronavirus pandemic.

In general, fashion trend forecasting will look two years out, according to consumer product director at fashion trend analysis company Stylus, Emily Gordon-Smith. But amid the uncertainty of the pandemic, the company advised its clients to play it safe with “seasonless” clothing.

“We tend to plan six months ahead, which is nerve-racking when you think about it,” Nordstrom’s Ms. Ivanoff-Smith said.

“How are you feeling in New York? L.A.? Seattle? We realized we needed to cater to all the scenarios,” Ms. Ivanoff-Smith said. The Seattle-based department store “eased into the spring season” by starting with casual clothes and then moving into special fashions like jewelry and colorful dresses. Still, convincing consumers spoiled by comfy clothing seven days a week to go back to heels and suits may not be easy, Ms. Gordon-Smith said.

“Once consumers are embedded in a comfort-based wardrobe, it’s a very tough mindset to shift,” Ms. Gordon-Smith said. “It’ll be underpinned by a desire to dress up again, but by our predictions that’s not going to happen on a large-scale until 2022.”

‘GET OUT OF SWEATSUITS’
But as the return of spring and progressing vaccination campaigns brought some cheer, Neiman Marcus, Walmart, and Macy’s said they have already begun to see people starting to tire of cozy and comfy clothes.

“We’ve begun to see many of our iconic designers show looks and pieces that reflect a return to customers attending special occasions,” said Neiman Marcus’ Todorovich. Brands like The Row, Brunello Cucinelli and Victoria Beckham have embraced “optic whites that symbolize a sense of refresh, rebirth, and a natural reset,” she added.

“The customer mentality is wanting to get out of sweatsuits and sweatshirt pajamas and put on something that makes them feel pretty and excited to go out,” Walmart’s Hilzer said.

At Macy’s, Durand Guion, vice-president of the department store’s fashion office, said he is even starting to see a return to formal clothes and wedding gowns as states open up.

“Weddings can happen again, gatherings can happen again,” he said. “I think a lot of that momentum will just sort of continue as vaccinations take place.” — Reuters

Bank for OFWs gets MB’s first digital banking license

April 5, 2021 | 12:04 am

THE OVERSEAS Filipino Bank (OFBank) obtained a digital banking license from the Monetary Board (MB) on March 25, making it the first official digital-only bank in the country, the Department of Finance (DoF) reported.

OFBank started its operations in June 2020 using its existing license to operate as a thrift bank, before receiving the country’s first digital banking license last month, the DoF said in a statement on Sunday.

The Bangko Sentral ng Pilipinas (BSP) issued the rules and regulations for digital banking license through Circular No. 1105 for banks that want to set up branchless and digital-only banks in the country. OFBank applied in February to convert its thrift bank license to that of a digital bank.

The lender is wholly owned by state-led Land Bank of the Philippines and was established in September 2017.

“This milestone in the country’s banking history not only fulfills President Duterte’s campaign pledge to create a bank that caters to overseas Filipinos, but will also help the Philippines leapfrog to the digital economy,” Finance Secretary Carlos G. Dominguez III said in a statement over the weekend.

OFBank currently has four digital products and services: Digital Onboarding System with Artificial Intelligence (DOBSAI); fund transfers; bills payments; and applications for multi-purpose loans.

DOBSAI allows clients to open a mobile banking deposit account using mobile phones in real time. It now has 19,887 accounts as of end-2020 with outstanding deposits worth P104.37 million.

The bank’s digital banking recorded P467 million worth of inflows from 45,997 accounts, and P372.41 million of outflows from 62,633 accounts so far.

The small bond offerings of the Bureau of the Treasury (BTr) also boosted the usage of the mobile app, it said, with 3,517 transactions worth P40.72 million done for the second series of Premyo bonds, and 380 transactions worth P8.27 million in issuance of retail Treasury bonds (RTBs).

The bank is accessible across 112 countries, while 763 merchants are connected in the mobile app via the LinkBiz.Portal.

Under the BSP’s new circular, interested parties wanting to apply for a digital banking license need to put up a minimum capital of P1 billion to establish their presence in the country. The framework also allows currently established brick and mortar lenders to convert to digital banks.

Other digital banks in the country that have yet to obtain an official digital banking license include CIMB Bank Philippines, Inc. and ING Bank N.V. Manila. — Beatrice M. Laforga

The electric nexus of Lexus

April 5, 2021 | 12:04 am

How the LF-Z Electrified concept car points to the brand’s future

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LEXUS is about to experience a global transformation, and the brand gave a rare glimpse of what to expect in this metamorphosis.

Since the launch of the RX 400h (the world’s first luxury hybrid model) in 2005, Lexus has sold nearly two million electrified vehicles and currently offers nine models of hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs) in approximately 90 countries around the world.

And now, Lexus has unveiled the LF-Z Electrified, a concept midsize BEV that embodies the transformation of Japan’s premiere luxury automaker in terms of driving performance, styling, and technologies envisioned for realization by 2025.

FROM SPINDLE GRILLE TO SPINDLE BODY
If you think you’re missing the traditional Lexus spindle grille in the LF-Z Electrified, you need to expand your vision — literally. Whereas the grille alone presented the distinctive spindle design in previous and current Lexus models, the future execution will now include the whole car itself — the grille and the hood of the LF-Z, for instance.

Lexus is evolving the design icon of its spindle grille into a spindle body as the overall body architecture. The aim was to create a three-dimensional design that transforms the form of the vehicle body itself into the icon of the Lexus brand.

In the rear, a clean and simple horizontal design combines with the molding that emphasizes the wheels to express a powerful stance. Also, horizontally displaying “LEXUS” in the continuous slim taillamp contributes to styling that symbolizes the next generation of the brand.

THE NEW ‘TAZUNA’ INTERIOR DESIGN
To embody to an even higher degree the company’s human-centered approach, the cockpit was designed based on the new concept of tazuna (Japanese for “rein”). Inspired by the relationship between horse and rider, who communicate through a single rein, steering wheel-mounted switches and the vehicle’s head-up display have been coordinated to create a space in which the navigation system, audio system, and driving mode selection, can be performed without movement of the driver’s line of sight or need to operate complicated switches.

The entire interior has been made a clean and high-quality space by a form that seamlessly connects the cowl to the front doors and on to the rear doors. Also, a panoramic roof uses long plates of glass that bring about a feeling of openness.

LEXUS DRIVING SIGNATURE
The LF-Z Electrified evolves the “Lexus Driving Signature,” a unique Lexus driving experience that aims for a linear response that is faithful to the driver’s intentions, including the feeling of seamlessly connecting acceleration, steering, and braking in any driving situation.

The LF-Z Electrified achieves an ideal balance by optimally positioning the battery and motors. By orienting the lithium-ion battery assembly longitudinally under the floor of the vehicle, the chassis becomes more rigid and the vehicle’s center of gravity is lowered for improved dynamics. In addition, this design helps mitigate vibrations and unpleasant noises from penetrating the passenger cabin. The Lexus DNA of quietness and ride comfort has evolved dramatically yet remains.

The new DIRECT4 four-wheel drive technology controls the front and rear drive wheels independently and can switch between front-wheel drive, rear-wheel drive, or all-wheel drive, depending on the driving situation. The system controls the distribution of driving force through the seamless orchestration and calculation of accelerator pedal and steering wheel inputs, resulting in powerful acceleration (zero-100kph in three seconds) and exhilarating cornering performance that delivers precisely what the driver expects. The use of steer-by-wire eliminates the need for a mechanical connection through the steering shaft, resulting in a more direct response and enabling the vehicle to turn with less steering angle and more precision.

ARTIFICIAL INTELLIGENCE TO ENRICH THE MOBILITY EXPERIENCE
The LF-Z Electrified’s voice recognition system uses the latest artificial intelligence (AI) to recognize, learn, and adapt to a driver’s habits and preferences, supporting tasks such as determining driving routes and even making restaurant reservations.

A digital key allows family and friends to access the car without having to hand over a conventional key, in addition to operating the vehicle with a smartphone, such as opening and closing the door locks. And by enabling service providers to access the car via the digital key, it will be possible to provide vehicle-linked services such as package delivery to the car and car sharing.

The retractable door handle automatically appears above the vehicle’s surface when a driver or passenger approaches with key in hand. The door can be unlocked and opened by touching the sensor inside the handle. Sensors scan the surrounding environment for oncoming traffic prior to passenger egress to provide an additional layer of passenger safety.

The panoramic roof uses electrochromic glass and is equipped with entertainment functions such as dimming for privacy and shade, or illumination to reflect the passing night sky. In the center of the roof is a touch panel that connects the front and rear seats, and is used for communication between passengers. The reclining rear seats are equipped with a massage function while a next-generation Mark Levinson audio system, working with an active noise cancelation feature, reproduces a quiet, concert hall-like audio experience.

LEXUS CIRCA 2025
By 2025, Lexus plans to introduce 20 new or minor-change models, including more than 10 electrified models such as BEVs, plug-in hybrid electric vehicles (PHEVs), and HEVs, in line with the needs of each country and region around the world.

Lexus aims to offer electric variants of all its models by 2025, with the sales ratio of electric vehicles exceeding that of gasoline-engine vehicles. It also plans to develop vehicles such as sports models that continue to provide the fun of driving, a car that redefines the concept of having a chauffeur, and new genres that have never before existed.

SEC warns public against Align Assets’ unauthorized investment scheme

April 5, 2021 | 12:04 am

THE Securities and Exchange Commission (SEC) issued a warning against unlicensed entity Align Assets for offering unauthorized investment schemes.

“The advisory is prompted by numerous inquiries from the public who would like to know whether or not an entity called Align Assets is registered with this commission and whether or not Align Assets has a secondary license to solicit investments/placements from the public,” the corporate regulator said.

Based in the United Kingdom, Align Assets is said to be a “decentralized” trading platform. Reports collected from the public and online sources say that the entity is not supervised or handled by a person or a group, but is instead headed by a robot or a “bot.”

The bot conducts the trading activities. It offers investors services that convert investments to digital currency or bitcoin.

The scheme promises a three percent return every working day, or a total profit of 150% in 50 working days. Members with referrals are promised as much as five percent per direct referrals and 0.5% for indirect invites.

Align Assets is not authorized to collect or offer investments to the public since “it has not secured prior registration and/or license from the commission as prescribed under Section 8 and 20 of the Securities Regulation Code.”

The SEC also said that Align Assets is not registered with the Bangko Sentral ng Pilipinas (BSP) to engage in digital assets. The Guidelines for Virtual Currency Exchanges of the BSP requires all entities in the Philippines engaged in businesses in virtual currency to get a certificate of registration to operate as remittance and transfer company.

Align Assets is also not registered as a crowdfunding intermediary nor as a funding portal with the SEC.

The commission reminded the public to conduct due diligence on the company before diving into investment programs. The SEC also told would-be investors to avoid investments “offering unrealistic returns.”

The SEC calls on the public to report groups or individuals who are offering unlicensed investment programs to the commission’s Enforcement and Investment Protection Department via epd@sec.gov.ph. — Keren Concepcion G. Valmonte

An alternative to ‘no alternative’: How bonds snuck up on stocks

April 5, 2021 | 12:03 am

A COMMON narrative in markets is that with global rates so low, equities are the only game in town for investors with an appetite for upside. But after the worst selloff in Treasuries since 1980, the edge for stocks is starting to dull.

While yields are still low relative to history, the mantra of “there is no alternative” is losing its pull with 10-year Treasury rates nearly 80 basis points (bps) higher than they started in 2021.

As a result, the so-called Fed model — which compares corporate profits to bond yields — shows that S&P 500 Index stocks are the least attractive relative to Treasuries in more than a decade. The equity benchmark’s earnings yield — how much profits you get relative to share prices — is about 1.3 percentage points above the yield on 10-year Treasuries. That’s the smallest advantage since 2010.

Minds are being changed thanks to the rapid repricing of the US economic outlook — nonfarm payrolls increased by 916,000 last month as more vaccines found arms and the government delivered trillions of dollars in fiscal aid. Meanwhile, as inflation expectations hit multi-year highs, Federal Reserve policy makers have made it clear that they won’t act preemptively to curb price pressures. Long-dated bond yields have rocketed higher as a result, breathing new life into the asset class after rates fell to all-time lows last summer.

“That we’ve had such a swift selloff in bonds while stocks have continued to hit new highs very much implies that the relative attractiveness of bonds is quickly improving,” said Dan Suzuki, Richard Bernstein Advisors LLC’s deputy chief investment officer.

Bonds may stay attractive for the next decade, according to a Bank of America analysis. The firm’s valuation framework — which it says has proved 80% prescient over 10-year intervals — forecasts returns of 2% per year over the next decade, analysts wrote in a note last month. That’s “close to levels that renders bonds compelling,” particularly if the 10-year Treasury yield hits the bank’s year-end target of 2.15%. The note yielded about 1.68% on Thursday.

The rise in yields is also taking the shine off dividend-yield stocks. For the first time since late 2019, the S&P 500’s payout is below the yield on the benchmark note. As of Wednesday’s close, the S&P 500 had a dividend yield of 1.46%, 30 bps below the yield on 10-year Treasuries.

On Thursday, there were 231 companies in the S&P 500 with a higher dividend payout than the 10-year Treasury rate, according to data compiled by Bloomberg. That compares with 341 companies at the start of the year.

“The 10-year yield finally passed the S&P 500 dividend yield and I think if those yields rise, it becomes a more and more attractive place to park some money,” said Ross Mayfield, investment strategy analyst at Baird. “There’s probably room for yields to continue to move higher — 1.75% could be an attractive level. But if yields continue to rise, the price of those bonds is going to feel it. So it’s a tough balancing act for sure, but they’re becoming more attractive.”

Richard Bernstein’s Mr. Suzuki agrees. The Fed model and the dividend yield eclipse aren’t necessarily buy signals for bonds — yet. Should the consensus in markets play out — that the vaccine rollout will kick-start a surge in growth — then bonds have the capacity to underperform equities further even as their valuations begin to look enticing, Mr. Suzuki said.

“But clearly, one’s interest rate outlook has a lot to do with how you view the relative attractiveness of stocks and bonds. We are in the camp that interest rates will continue to trend higher in the coming years, which makes the relative attractiveness of bonds all the worse,” Mr. Suzuki said. — Bloomberg

John le Carre was so furious with Brexit he got Irish citizenship

April 5, 2021 | 12:03 am

JOHN LE CARRE — KRIMIDOEDEL/EN.WIKIPEDIA.ORG

LONDON — John le Carre, the British novelist who cast flawed spies onto the bleak chessboard of Cold War rivalry, was so disillusioned by the 2016 Brexit vote to leave the European Union that he secured Irish citizenship shortly before he died.

David Cornwell, known to the world as John le Carre, discovered his Irish roots and gained Irish citizenship before he died aged 89 last year.

His son, Nicholas, told the BBC that Mr. Le Carre’s disillusionment with modern Britain and Brexit in particular had driven the quest for Irish citizenship. In one photograph, his son said, Mr. Le Carre wraps himself in an Irish flag and grins.

Mr. Le Carre’s novels cast post-imperial Britain — and its spies — as incompetent, ruthless, and often corrupt, and his later novels show a growing anger at the foreign policy of the United States and the actions of its powerful corporations.

On Brexit, Mr. Le Carre did not mince his words, comparing it to the 1956 Suez crisis which confirmed post-imperial Britain’s loss of global power. “This is without doubt the greatest catastrophe and the greatest idiocy that Britain has perpetrated since the invasion of Suez,” Mr. Le Carre said of Brexit. “Nobody is to blame but the Brits themselves — not the Irish, not the Europeans.”

“The idea, to me, that at the moment we should imagine we can substitute access to the biggest trade union in the world with access to the American market is terrifying,” he said.

In the June 23, 2016 referendum, 17.4 million voters, or 51.9%, backed leaving the EU while 16.1 million voters, or 48.1%, backed staying. Supporters see Brexit as an escape from a doomed Franco-German project that has stagnated while the United States and China surged ahead. Opponents say Brexit will weaken the West, further reduce Britain’s global clout, make people poorer and lessen its cosmopolitanism. — Reuters

Dream team

April 5, 2021 | 12:03 am

Will this harvest of foreign exotics soon make its way into the country?

THE PREVIOUS months may have reflected a significant decrease in overall car sales due to the pandemic, but most car manufacturers have not slowed down in churning out new models to tease the appetite of hopeful motorists. So, what new, innovative cars are we looking forward to, and do we wish to be offered in the Philippines this 2021? Allow me to run through a few.

PEUGEOT 508 SPORT ENGINEERED

If you remember, a while back I wrote about Peugeot’s global announcement that it was coming out with a very special and new Sport Engineered line. Well, the time has finally come for Peugeot to showcase the beginning of its latest aesthetics, led by efficiency, via its Peugeot 508 Sport Engineered model. Offered both in the form of a saloon and as an estate car, the 508 PSE will become the fastest car in the Peugeot range so far. It’s expected to show off some great sport tuning thanks to input from Peugeot’s specialized Sport tuning division. With a 200hp petrol engine further strengthened by two 110hp electric motors, the new Peugeot 508 Sport Engineered vehicle will definitely become the apple of many an enthusiast’s eye!

PORSCHE 911 GT3

Have you seen the Porsche 911’s hot-looking and track-focused GT3? It’s an awesome, 510hp sportscar that, unlike the rest of the 911 range, is powered by a four-liter, naturally aspirated engine. We hear it’s going to be solid fun to drive this thing around the track; and even more so in its manual transmission variant. The 911 has always been one of my all-time favorites of the Porsche models, and I can’t wait to see this one on our roads!

BMW iX

The BMW iX is truly exciting because it will be BMW’s first, fully electric compact SUV. The anticipated drive range of this vehicle is set at approximately 300 miles per full charge; and it will be powered by two electric motors that also enable the compact SUV to run on full-time all-wheel drive (AWD). The vehicle is based on BMW’s Vision iNext concept that was showcased back in 2018. And the production model is expected to look just as futuristic, while incorporating a spacious cabin decorated with carbon-fiber reinforced, plastic body panels.

VOLVO XC40 RECHARGE

The Volvo XC40 Recharge is the Scandinavian brand’s fully electric SUV, and the company says it can take you as far as 418 km on a single, full battery charge. It uses a one-pedal drive system and is powered by twin electric motors that can be fast-charged to 80% capacity in just 40 minutes. That makes this vehicle realistically viable for driving within the city, and with zero tailpipe emissions at that. Doesn’t this make it the absolute ideal model for a city car? Imagine: safety at the forefront, combined with cleaner city air. This is my perfect automobile combo for highly populated areas!

MERCEDES BENZ S-CLASS

The seventh-generation Mercedes Benz S-Class is an amazingly future-proof car that takes connectivity, digitization, electrification and the quest for driving autonomy all to the next level. Although it still relies on an internal combustion engine as its main source of power — in the form of a three-liter, inline six that spits out 429hp — it is also boosted by a mild hybrid system that adds an additional 22hp to the mix. Furthermore, there is rumor that a 580e plug-in hybrid variant will be released later in the year.

NISSAN ARIYA

It was at the 46^th Tokyo Motor Show (TMS 2019) that Nissan HQ unveiled its impressive electric crossover — the Nissan Ariya. It is one of the company’s icons of the latest design direction which it likes to call “Timeless Japanese Futurism.” And at the time, their Senior Vice-President for Global Design Alfonso Albaisa described it as “a concept which we will soon be able to drive.” True enough, the Ariya soon became Nissan’s first-ever, all-electric crossover SUV available as a production vehicle.

The Ariya offers the most spacious cabin in its class — with a flat, open floor and slim-profile Zero Gravity seats, that result in enormous legroom. It is almost as if its interior is no longer simply a car cabin, but rather transformed into a pleasant living space for the driver and passengers to enjoy.

MAZDA MX-30

After stating for years that it was not yet time to penetrate the electric realm, Mazda fascinated TMS 2019 guests with the revelation of its very first mass production EV — the Mazda MX-30 electric hatchback crossover. Carrying its proprietary e-SkyActiv powertrain that draws power from a lithium-ion battery with a total battery capacity of 35.5kWh, the MX-30 puts forward the company’s new “Human Modern” concept for EVs, while still maintaining the same human-centric philosophy and jinba ittai (“horse and rider as one”) driving dynamics that the company has long been known to value.

The MX-30 presents an open-feeling cabin that wishes to set the mind free — designed with rear-hinged suicide doors, which they like to call “freestyle doors,” and is made from sustainable materials (including airy fibers made from recycled plastic bottles, and Heritage Cork trim, laid out in the center console). It’s already available as a production car in Europe, and I truly wish it would find its way to the Philippines.

RANGE ROVER

A new Range Rover is due to be launched soon, and it’s expected to showcase an ultra-high-technology cabin and a plethora of innovative, driver-assistance technology. Both petrol and diesel variants will be assisted by electric motors, qualifying them as mild hybrids. A fully-electric variant is also expected to emerge, making use of technology co-developed with BMW.

ROLLS-ROYCE GHOST

The new Rolls-Royce Ghost has already been hailed as many a governing body’s 2021 luxury car of the year. It has been completely redesigned, and is lighter, stronger, and more refined than ever. It has an additional 200 pounds of sound-insulating material and, of course, lives up to its legendary “magic carpet ride.” What’s best is that this model — using its powerful 6.75-liter, twin-turbocharged V12 engine — is able to combine ultra-luxury and exhilarating performance into a single vehicle — a combination long thought to be too difficult to achieve.

SOCResources unit to launch second tower of Anuva Residences

April 5, 2021 | 12:03 am

By Keren Concepcion G. Valmonte

THE real estate arm of SOCResources, Inc., SOC Land Development Corp., plans to launch and begin constructing the second tower of its four-tower condominium project in Muntinlupa CIty.

“We did very well the moment the [quarantine] restrictions were lifted, that is why our second tower is 70% sold,” Edgardo P. Reyes, SOCResources chairman, told BusinessWorld in a Zoom interview.

Construction for the project’s second tower Anuva Residences will begin in the coming months, which was initially delayed because of the pandemic. Pre-selling of the units in the third and fourth towers, “which will carry some additional improvements,” will be offered soon.

Mr. Reyes said Anuva Residences boasts of “real true suburban living,” featuring swimming pools, basketball courts, a clubhouse, and a skylounge on each tower. The development stands on some two hectares of land, 75% of which is said to be left for open space.

“It’s a product that would normally cost you tens of thousands [per square meter] than what we’re selling it for,” Mr. Reyes said.

With the development’s first tower Anala already 90% occupied, the property developer is looking to make the project more attractive to buyers.

“You can see our buyers are not speculators who rent it out. They actually occupy their units, the majority of them, so we have a thriving community and we believe that we need to give them additional amenities to serve their needs,” Mr. Reyes said.

The company is planning to add a small strip mall, and a better entrance to the development to welcome residents to the facilities.

Plans for expansion and construction of SOC Land’s real estate developments, which include house and lot project Althea Residences in Laguna, are said to be internally funded by the company.

In 2020, the company said it lost some buyers due to the effects of the health crisis. However, SOC Land noted that it “recouped everything” it lost over its “good value proposition.”

Expansions for the next year would, however, still depend on what is going to happen in the next six months in light of the pandemic.

“If we handle it well and we come out of it well, that’s fine. We have the capital and the resources necessary to take full advantage of the opportunities,” Mr. Reyes said.

The company previously disclosed that its Laguna-based project, Althea Residences, had begun constructing its second phase. It is expected to be completed in eight months.

SOC Land also plans to add more projects adjacent to its existing developments, to offer more townhouses.

“We are very responsible developers and we aim to be one of the best, if not the biggest,” Mr. Reyes said.

On Wednesday, the last trading day of last week, shares of SOCResources went up by 1.45% or P0.01 to close at P0.70.

Farmers pushing for more say in coco levy benefits distribution

April 5, 2021 | 12:03 am

COCONUT FARMERS need to play a bigger role in determining the distribution of benefits resulting from Republic Act No. 11524 or the Coconut Farmers and Industry Trust Fund Act, an agricultural organization said.

The Federation of Free Farmers (FFF) said in a statement that it proposed the creation of a farmers’ advisory council to advise the Trust Fund Management Committee at a virtual meeting with the Department of Agriculture and the Philippine Coconut Authority (PCA).

Under the law, the committee decides on the disposition of coconut levy-acquired assets and the subsequent strategy for investing the proceeds. Members of the committee are the Secretaries of Finance, Justice, and Budget and Management.

According to FFF Secretary Dioscoro A. Granada, some of the acquired companies include the United Coconut Planters Bank, the Coconut Industry Investment Fund-Oil Mills Group, the United Coconut Planters Life Assurance Corp., the UCPB General Insurance Co., and the United Coconut Chemicals Corp.

“Coconut farmers paid the coconut levies. They have the moral and legal right to be consulted on the fate of these corporations and other assets that are supposed to benefit them directly,” Mr. Granada said in the statement.

Mr. Granada added that clarification is needed on who will approve the implementing rules and regulations governing the work of the Trust Fund Management Committee.

“Under the law, the President shall approve the coconut farmers and industry development plan to be prepared by the PCA, in consultation with coconut farmers’ organizations and other coconut industry stakeholders. Shouldn’t he also approve the implementing rules and regulations drafted by the Trust Fund Committee, which handles the assets privatization and funding for the road map,” Mr. Granada said.

The FFF urged Agriculture Secretary William D. Dar and PCA Administrator Benjamin R. Madrigal, Jr. to implement a provision under Republic Act No. 7607 or the Magna Carta of Small Farmers during the selection of the three farmer representatives in the PCA board.

The FFF said under the law, farmers who have been elected at the barangay, municipal, provincial, and regional levels, must elect from among themselves their national officials who will fill a seat in the boards of government agencies such as the PCA.

Signed on Feb. 26, the law puts coconut levy assets in a trust fund that aims to modernize the coconut industry under a development plan to be created by the PCA, and improve the lives of coconut farmers.

It authorizes the Bureau of the Treasury to transfer P10 billion to the trust fund in the first year, P10 billion in the second, P15 billion in the third, P15 billion in the fourth, and P25 billion in the fifth.

Former President Ferdinand E. Marcos and his associates imposed the coconut levy on farmers, promising to modernize the coconut industry using the proceeds as well as a share of the investment returns.

However, the money was diverted to purchase corporate assets like shares in the United Coconut Planters Bank and San Miguel Corp. — Revin Mikhael D. Ochave

A $27-trillion challenge looms as yen Libor shift approaches

April 5, 2021 | 12:02 am

JAPAN is emerging as a key area of concern in the global migration away from the London interbank offered rate (Libor).

With just nine months until yen Libor is phased out, only a fraction of the roughly Y3 quadrillion ($27 trillion) in derivatives pegged to the discredited benchmark have switched to alternative reference rates. A further $150 billion in cash products such as loans and floating-rate notes — many of which can’t be easily shifted to new benchmarks — aren’t due to mature until after Libor expires, Fitch Ratings says.

As the deadline nears, worries are mounting that the country could face a disorderly transition come yearend marred by technical problems, legal disputes and increased interbank rate volatility. Global regulators overseeing Libor’s end announced in March that they were considering the creation of a ‘synthetic’ yen rate as a stopgap measure to allow more so-called tough legacy contracts to roll off the books.

“The problem lies across the whole spectrum,” said Willie Tanoto, director of financial institutions with Fitch Ratings in Singapore. “Things can still fall into place in time, it’s just that it leaves very little room for error.”

The Bank of Japan (BoJ) and the Financial Services Agency say they will monitor firms’ progress and take steps as needed. Companies should work to cease issuing new loans and bonds referencing yen Libor by the end of June, and to significantly reduce the amount of such securities on their books by the end of September, according to a joint statement. A representative for the BoJ-backed cross-industry committee on Japanese yen interest rate benchmarks declined to comment.

Japan, like the US, the UK and others, has been racing against the clock to prepare for the demise of Libor, a bedrock of the financial system being phased out by global policy makers due to a lack of underlying trading and following a high-profile rigging scandal. Japan’s total exposure is limited compared with the $223 trillion pinned to its dollar equivalent, where progress has been sluggish too.

EARLY STAGES
Britain’s main Libor replacement has been around since 1997, as has the Tokyo overnight average rate, or TONA, while its US equivalent was launched three years ago. Markets are still waiting for one of the main yen Libor alternatives to get started in April, less than nine months before the legacy benchmark expires. And in the U.S., adoption of the Secured Overnight Financing Rate (SOFR) remains tepid with no term structure introduced yet.

While the U.S. late last year extended the retirement date of key dollar Libor tenors by 18 months, such a move has proven impractical in Japan due to a lack of support from the panel banks that help determine the rate. Decisions made by Japanese authorities in recent years have also added an extra layer of complexity to certain parts of the transition.

Unlike in the US and UK, Japanese officials aren’t pushing market participants toward a single Libor alternative. The decision to reform and keep alive the Libor-like Tokyo interbank offered rate, or Tibor, may slow adoption of TONA, according to Fitch. TONA will be used mainly for derivatives while another benchmark, the Tokyo term risk-free rate, or TORF, will be employed for loans and bonds.

In fact, just 3.5% of yen risk in cleared over-the-counter and exchanged-traded interest-rate derivative transactions was pegged to TONA in February, according to data and analytics firm Clarus Financial Technology, among the lowest of the alternative rates it monitors.

“The TONA market is not ready to absorb the overall Libor exposure,” said Takeshi Iwaki, a director at Deloitte Japan, though he added that many remain optimistic that volumes will pick up in the coming months.

The lack of liquidity could also delay efforts to develop a TONA-based forward-looking term structure that lets borrowers know their interest payments in advance, seen as critical to facilitating wider adoption, according to Fitch.

LEGACY PROBLEM
Just as worrisome to some are Japan’s struggles to address tough legacy contracts that will still be linked to Libor when it eventually expires.

Unlike in the US — where lawmakers are pursuing legislation that would impose fallback rates on troublesome deals — officials in Japan have made little progress addressing the issue, market watchers say.

Senior officials at Japan’s FSA, which is also involved with planning the transition, say that the scope of tough legacy issues is limited. And the move to new rates could also make further progress once TORF gets going, according to those officials.

TORF remains at prototype stage, and financial information company QUICK Corp. is scheduled to begin publishing the rate on April 26. The BOJ expects yen Libor contracts to start shifting in earnest to alternative rates once TORF begins in April, and sees most transitions to be completed before the end of September.

For its part, the British regulator that oversees Libor said in March that it plans to consult on the establishment of a synthetic yen Lwibor for an additional year to allow more legacy contracts to mature.

While the rate can’t be used for new transactions, it could help forestall a flurry of lawsuits between counterparties of Libor-linked deals once the benchmark ceases to be published.

But synthetic Libor isn’t a panacea and bankers will still need to work on adjusting existing contracts, according to Fitch’s Tanoto.

Others see more reason for optimism. A term version of TONA could be published as soon as mid-year, according to Ann Battle, head of benchmark reform at the International Swaps and Derivatives Association.

“We would expect to see a steady increase in liquidity in TONA over the course of this year, particularly now there is further clarity for the timetable on Libor’s demise,” she said via email.

Yet if plans are going to fall into place to facilitate a smooth transition, they need to do so quickly. Earlier this year Clarus warned Libor’s administrator that the nation’s derivatives market is in a “precarious position” given the low adoption of alternative benchmarks.

“I know how difficult it is to create a new market, I know how difficult it is to move liquidity from one product to another,” said Chris Barnes, a senior vice president at Clarus. “It still looks like a big concern.” — Bloomberg

Tigers get chicken ice pops at Thai zoo

April 5, 2021 | 12:02 am

CHIANG MAI, Thailand — Tigers were fed frozen chicken “popsicles” and were enticed to splash in a wading pool at a Thai zoo on Thursday as temperatures rose. Around 50 of the big cats live at the Tiger Kingdom zoo in Chiang Mai, 700 km north of Bangkok, according to Patchara Chanted, coordinator of the tiger handlers there.

“Tigers will save their energy during most of the day by lying down or trying to exert themselves as little as possible,” said Patchara. “But if it gets too hot for them, they will start panting like cats or dogs to avoid heat stroke.”

“We provide some activities in the water or a toy to help them cool down.”

Two tigers splashed in a pool, jumping to swat at a bunch of leaves held above the water by a handler. Twice daily during the summer months, the tigers are fed chicken encased in ice blocks.

Thailand’s hot season began at the end of Feb. and temperatures are expected to rise as high as 35 degrees Celsius. — Reuters

Nürburgring conqueror Audi RS Q8 now available in PHL

April 5, 2021 | 12:02 am

AUDI PHILIPPINES has brought in the all-new 2021 Audi RS Q8. The flagship SUV of the Ingolstadt-headquartered automaker has the distinction of being the fastest production SUV to lap the iconic Nürburgring’s North Loop at 7:42.253.

Each high-performance vehicle (be it sedan, coupe, crossover, or SUV) developed by Audi Sport is tested at the proving ground in Germany. Each logs at least 8,000 kilometers of evaluation and development work. Through this, Audi Sport determines how the RS models’ powertrain and suspension components perform under extreme conditions.

Audi Philippines offers the local market the opportunity to experience the capabilities of the all-new, 2021 RS Q8. “The SUV’s numerous technologies and features can even be presented to clients from the comfort of their homes through the Audi Live View. This fully digital luxury experience lets clients engage in real time, via a smartphone, with an Audi product expert who is at an Audi Philippines showroom,” said the company in a release.

The SUV is powered by a 4.0-liter, twin-turbocharged TFSI V8 engine that delivers 600hp and 800Nm of torque between 2,200rpm and 4,500rpm — output that can propel the SUV from standstill to 100kph in just 3.8 seconds, and to 200kph in 13.7 seconds.

The Audi RS Q8 boasts a “distinct voluminous sound coming from a dual exhaust system finished by oval tailpipes.” The sound can be tuned using the Audi drive select system, which also alters handling and dynamic response of the vehicle. Despite the heightened power, the SUV is fuel-efficient owing mild hybrid system that, “in certain conditions, can let the vehicle coast for up to 40 seconds with the engine switched off.” Audi’s cylinder-on-demand system also deactivates some of the cylinders when not needed to cut on fuel consumption.

The vehicle is equipped with Audi Sport’s Quattro permanent all-wheel drive system that splits the drive power between the front and rear axles depending on available traction. An eight-speed tiptronic transmission delivers the engine’s power to the Quattro system.

Equipped as standard is the RS adaptive air suspension sport with controlled damping, which can be set up toward dynamic handling even while retaining the model’s inherently comfortable and smooth ride. Boosting the model’s performance are an all-wheel steering system, massive RS ceramic brakes, and RS sport exhaust.

On the outside, the RS Q8 gets a Singleframe, RS-specific radiator grille, side air inlets and other trim pieces; HD Matrix headlamps; wide Quattro blisters above the wheel arches that provide space for the model’s more generous wheel track; the RS roof-edge spoiler and rear skirt with a diffuser clip that provide increased downforce; and 23-inch sport alloy wheels.

Inside are special RS displays and graphics in the Audi virtual cockpit and MMI, including a shift light. RS badges on the sport seats, illuminated door sill trim and flat-bottom leather steering wheel elevate the model. Also included among other luxury features are the air quality package, seats with massage function, a premium Bang & Olufsen audio system, carbon fiber trim, an extended leather package, and soft-closing doors. The vehicle also features a comprehensive range of assist systems.

For more information on the all-new Audi RS Q8, call Audi Centre Greenhills at 0917-806-2946 for, Audi Centre BGC at 0917-935-4111, Audi Centre Westgate Alabang at 0917-813-9064, and Audi Centre Seaside Cebu at 0917-842-3419 for. E-mail sales@audi.ph.