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SEC extends deadline for new manual on governance

THE Securities and Exchange Commission (SEC) is extending the deadline for the submission of a new Manual on Corporate Governance for public companies and registered issuers until the end of next month.

In an Aug. 6 memorandum uploaded on its website, the SEC said the commission en banc had agreed to move the original July 12 deadline of the new manual to Sept. 30 in light of the coronavirus situation in the country.

Upon submission, the new manual must be signed by the company’s chairman of the board and compliance officer, otherwise it will not be considered filed.

Late or non-submission of the new manual may be fined P10,000 as basic penalty and P1,000 monthly penalty, which will accrue until the document is filed.

These rules apply only to public companies and registered issuers that are not publicly listed at the Philippine Stock Exchange. Publicly listed companies are guided by a different code of corporate governance.

To recall, the SEC issued a memorandum circular in December adopting a new Code of Corporate Governance for public companies and registered issuers. In line with this, it required the respective companies to submit a new Manual on Corporate Governance within six months, or by July 12.

The new code seeks to recommend 16 points for corporate governance, which tap into governance responsibilities, disclosure and transparency, internal control and risk management, relationships with shareholders, and duties to stakeholders.

Some of its recommendations are the submission of nonfinancial and sustainability report, and the disclosure of strategic and operational objectives alongside the sustainability initiatives that will support them.

The SEC said the code is in line with its goal of patterning the operations of local corporations with international standards. — Denise A. Valdez

T-bill, T-bond rates to decline

GOVERNMENT SECURITIES on offer this week will likely fetch lower rates amid weaker economic outlook and the possibility of monetary easing.

The Bureau of the Treasury (BTr) plans to borrow P20 billion in Treasury bonds (T-bonds) on Monday, broken down into P5 billion each from the 91- and 182-day debt papers and P10 billion via the 365-day instruments.

On Tuesday, the BTr will offer P30 billion in reissued 10-year Treasury bonds (T-bonds) carrying a coupon of 2.875% and with a remaining life of nine years and 11 months.

Rates of the T-bills could ease by seven to 15 basis points (bps), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message over the weekend.

He said the market is pricing in weaker economic conditions with Metro Manila and other key cities shifted back to stricter lockdown, as well as the record 16.5% contraction in second-quarter gross domestic product (GDP), which “could increase the possibility of further monetary easing measures especially by further cuts in banks’ RRR (reserve requirement ratio) as further support meadow may be needed most by the economy at this time.”

The country officially entered a technical recession after posting two straight quarters of decline. This brought the first-half average to -9%. The economy must post a 2.2% decline at most in second-half GDP to keep the full-year average within the projected 5.5% contraction.

Meanwhile, the central bank has been easing monetary policy to cushion the impact of the coronavirus pandemic on the economy, slashing benchmark interest rates by 175 bps so far this year and trimming the reserve requirement of banks to boost liquidity.

Rates on the Bangko Sentral ng Pilipinas’ (BSP) overnight reverse repurchase, lending and deposit facilities are currently at record lows of 2.25%, 2.75 and 1.75%, respectively.

The RRR of thrift and rural banks were cut by 100 bps last month to three percent and two percent, respectively, and the reserve ratio of universal and commercial banks was slashed by 200 bps in April to 12%.

Meanwhile, a bond trader expects demand for the T-bills will be “less than usual as investors will try to extend to longer tenors given the “higher consumer price index (short term) and slow growth (as recovery is not yet in sight).”

The BTr made a full P20-billion award of the T-bills it offered last week as rates declined across-the-board. Total tenders hit P76.405 billion.

Broken down, the government raised P5 billion as planned via the 91-day debt papers from bids worth P25.51 billion. The average rate fetched went down to 1.221% from the 1.335% logged in the July 27 auction.

It also made a full award of P5 billion in 182-day papers out of P23.585 billion in tenders at an average rate of 1.454%, down from 1.605% previously.

For the 364-day securities, the Treasury fully awarded its P10-billion offer at a lower average rate of 1.749% against 1.758% previously.

The average yield of the 10-year T-bonds may settle between 2.6-2.7%, Mr. Ricafort said, to hit “new record lows.”

“However, an offsetting factor is the record RTB (retail Treasury bond) issuance of P516.3 billion that could siphon off some of the excess peso funds in the financial system,” he added.

The government made a full P30-billion award of its offer of 10-year bonds on July 7 out of total bids worth P59.71 billion.

At the secondary market, rates of 91-, 182- and 364-day T-bills stood at 1.288%, 1.535% and 1.790%, respectively, while the 10-year notes were quoted at 2.693%, based on Bloomberg Valuation Service Reference Rates posted on Philippine Dealing & Exchange Corp.’s website.

The Treasury on Friday raised a record P488.5 billion in fresh funds or new money via the five-year retail Treasury bonds and P27.8 billion from the bond switch offer.

The bonds bear a coupon of 2.625% and will be issued on Wednesday, Aug. 12. The debt papers will be listed on the Philippine Dealing and Exchange Corp.

The government has set a P170-billion borrowing program for August. It will offer P110 billion in T-bills weekly and P60 billion in T-bonds to be auctioned off fortnightly.

It borrows from local and foreign lenders to plug its budget deficit seen to hit 9.6% of GDP this year. It plans to borrow around P3 trillion this year. — B.M. Laforga

PHL rice inventory falls 7.8% in June

THE NATIONAL rice inventory fell 7.8% year on year to 2.40 million metric tons (MT) in June, the Philippine Statistics Authority (PSA) said.

In its Rice and Corn stocks inventory report, the PSA said the year-earlier inventory level was 2.60 million MT. May total 2.80 million MT.

In June, the PSA said rice stocks held by households rose 19.8% year on year to 1.26 million MT while inventory held by commercial warehouses fell 10.7% to 891.40 thousand MT.

Meanwhile, the National Food Authority (NFA) inventories fell 54.9% to 248.33 thousand MT.

Compared to the previous month, the PSA said the national rice inventory fell 14.3%, with household stocks down 17.4%, commercial warehouse holdings falling 6.8%, and NFA depositories declining 22%.

“Of the month’s total rice stocks, 52.4% were in the households, 37.2% were in commercial warehouses, and 10.4% in NFA depositories,” the PSA said.

Meanwhile, corn stocks in June rose 5.3% year on year to 905.52 thousand MT.

Corn stocks held by households rose 20% to 96 thousand MT while the inventories of commercial warehouses rose 3.8% to 809.53 thousand MT.

NFA held no corn stocks for the month.

Month on month, the country’s corn stocks in households fell 38.9% while holdings of commercial warehouses rose 18.5%.

“About 89.4% of this month’s inventory were in commercial warehouses and the remaining 10.6% were in the households,” the PSA said. — Revin Mikhael D. Ochave

BIR issues rules on tax treatment of Islamic banks

THE BUREAU of Internal Revenue (BIR) has issued the guidelines to implement the neutral tax treatment of equivalent transactions between Islamic banks and conventional banks.

BIR Commissioner Caesar R. Dulay issued Revenue Regulations No. 17-2020 dated June 22 to serve as the implementing rules and regulations (IRR) for the tax neutrality provision under Republic Act No. 11439 or “An Act Providing for the Regulation and Organization of Islamic Banks” enacted in August 2019.

The IRR was signed by Finance Secretary Carlos G. Dominguez III on Aug. 5. The rules will take effect 15 days after their publication in a newspaper on Saturday.

“Islamic banking transactions must have a parity of tax treatment of equivalent conventional banking transactions within the provisions of the NIRC (National Internal Revenue Code of 1997), as amended, such that Islamic banking transactions are taxed no more heavily (and no more lightly) than conventional banking transactions,” RR 17-2020 read.

The BIR said the tax treatment of Islamic banking arrangements will be based on the “economic substance rather than their form.”

It said the tax treatment will be the same for Islamic bank arrangements and their counterpart products from traditional banks if they are “economically equivalent.”

“Any reference to interest shall apply to gains or profits received and expenses incurred in Islamic banking arrangements, in lieu of interest income and/or expenses under the conventional banking transactions.”

“Any reference to a disposal or lease of an asset shall not apply to any disposal or lease of an asset by or to a person that is carried out in accordance with Islamic banking arrangements as defined by the Bangko Sentral ng Pilipinas; Provided that the resulting tax effect on the Islamic banking arrangement would approximate or be similar to that applicable to the corresponding conventional banking transactions,” the rules state. 

The BIR said it will issue a separate circular to discuss the tax treatment of Islamic banking arrangements on Murabahah, Tawarruq, Salam, Ijarah, Mudarabah Partnership, Wakalad Investment, Istisna, Musharaka, Sukuk and other transactions.

The bureau said the financial statements prepared by Islamic banks, following the Philippine Financial Reporting Standards, should maintain a system separating the transactions of their Islamic banking arm from conventional banking operations.

It said Islamic banks should also register with the BIR based on existing guidelines on registration of businesses, while traditional banks with Islamic banking windows are also mandated to issue receipts on the profits made from Islamic banking operations. — B.M. Laforga

More brands release face mask versions

WITH THE coronavirus disease 2019 (COVID-19) pandemic still a concern in the country, the value of face masks as protection against cannot be more underscored.

And joining the brands offering their own versions of the trusted face mask here are Under Armour and Nano Wave Mask.

The Under Armour (UA) Sportsmask will be available come September but pre-orders for it can already be placed.

The UA Sportsmask is a reusable, water-resistant performance face mask, designed to optimize breathing and maximum comfort, a common concern particularly for those who want to continue with their active lifestyle despite the limitations of the current situation with COVID-19.

It can be used by people who want to train and exercise for health and wellness amid the pandemic, from serious athletes to casual fitness enthusiasts.

The sports mask has been available in the United States, United Kingdom, and Singapore and is proving to be sought-after. The UA Sportsmask has a suggested retail price of P1,395.

For more information on the pre-order and release dates, follow @AthletesProPH, the official distributor of Under Armour in the Philippines, on Instagram and Facebook.

NANO WAVE MASK
Meanwhile, the Nano Wave Mask is now available in the country with no less than world champion athletes vouching for its functionality and effectiveness as protection.

The Nano Wave Mask is touted to successfully combine function and form, featuring “state-of-the-art materials, a five-layered filtration system and a valve system designed for easy breathing and talking.” It also comes in a variety of colors as well as a full junior range for children.

Filipino World Boxing Organization world bantamweight champion John Riel Casimero is one of those who have come away impressed with the innovative mask, particularly how it is a good complement for his training.

“The Nano Mask is the first mask I can use while I am training in the gym,” he said.

Mr. Casimero is in Las Vegas right now preparing for his next title defense.

One must note that while valved masks are more comfortable to wear and can keep the wearer safe, they do not protect those around them from the wearer. As “the purpose of masks is to keep respiratory droplets from reaching others to aid with source control,” the CDC does not recommend using masks that have exhalation valves or vents. In the Philippines, some locations, like Healthy Options stores, do not allow customers wearing valved masks from entering as part of their safety protocols.

For more inquiries on the Nano Wave Mask, contact Scott Farrell at e-mail Scott@nanowavemask.com or number +63 929 775 6798. — Michael Angelo S. Murillo 

Regulator shuts down BOSS Network for fraud

THE Securities and Exchange Commission (SEC) has ordered the shutdown of Building Our Success Stories Network, Inc. (BOSS Network), which it said is fooling investors that it runs a multi-level marketing program.

In a statement over the weekend, the SEC said it had issued a June 18 a cease-and-desist order to BOSS Network for soliciting investments from the public without authorization from the regulator.

Its collaborator 101Upper Class Corp., which Boss Network runs an unauthorized investment scheme with named BOSS Ultimate Program (BOSS UP), is also covered by the order.

The involved parties must immediately stop offering securities to the public and refrain from transacting any business involving funds in depository banks.

“It is clear that BOSS Network is soliciting investments from the public in the guise of operating a multi-level marketing business, with a promise of guaranteed high return of investment,” the SEC said.

BOSS Network was found by the regulator offering investment opportunities through social media, masking itself as a multi-level marketing program for personal care products.

Its “member-investors” are promised to earn points from buying personal care packages and from recruiting more investors into the company. These points are supposedly convertible to incentives, which the SEC said is equivalent to selling securities in the form of investment contracts.

However, BOSS Network is only registered as a corporation engaged in the direct selling of goods and merchandise. Its certification of incorporation prohibits it from soliciting investments and issuing investment contracts, as this activity would require a secondary license from the SEC.

The regulator flagged BOSS Network’s activities as having the features of a Ponzi scheme.

“Clearly, BOSS Network’s business model and capitalization cannot sustain the promised returns on investment, especially if no new investors will come in,” it said.

“Payouts for investors are financed from investments of new recruits/investors. This is a fraudulent scheme which will likely cause grave or irreparable injury or prejudice to the investing public,” it added.

Aside from violating the Securities Regulation Code for selling securities without a registration statement, two of BOSS Network’s incorporators were also found by the SEC as submitting and using invalid Tax Identification Numbers.

BOSS Network was reached out to for comment on the shutdown order but was not able to respond.

The SEC regularly issues warnings on its website about groups that maliciously offer investment opportunities to the public. It has said in several advisories that one of the red flags should be any promise of “ridiculous rates of return with little or no risks.” — Denise A. Valdez

The casa that COVID-19 built

 

Many things have changed since you last visited your auto dealership

SAYING THAT the ongoing COVID-19 (coronavirus disease 2019) pandemic has inspired some changes in the workplace and the way we do things is truly an understatement. Every person and organization have been forced to evolve not just in order to restore some form of normalcy but, more often than not, to survive.

The car industry and its clientele are no strangers to these abrupt changes that we all somehow, like it or not, have had to embrace. The virus remains floating and communicable within our communities, yet people and goods still need to move. To move, people need vehicles. And vehicles, like all other machines in the physical world, eventually tire and need to be serviced. People still need to buy cars, fix cars, maintain cars. And ultimately, it becomes clear: There is definitely a call to keep the casa running.

If you haven’t been to your affiliated casas yet, you’d be surprised with how fast they’ve adapted, albeit some more effectively than others. I drive a Mazda CX-3 and found myself in a situation where I needed some servicing. And so I did some research on the latest protocols, and figured that I was comfortable with the way they run things in my frequented casa — Mazda Makati.

The steps are quite straightforward: Each customer is requested to contact the casa beforehand, to set an appointment via phone or online via Facebook. Once a date and time is registered, the client is encouraged to arrive on time, so as to align with the establishment’s managed foot traffic in the spirit of social distancing (and with the goal of keeping their mechanics’ work streams moving as efficiently as possible, too).

After setting my appointment, proceeding to Mazda Makati, and turning over my vehicle, I found that the dealership, whose skeleton workforce were all donning face masks and other protective gear, had already rearranged the showroom and office in a way that promoted serious social distancing. I found cleaners constantly fussing over common touch points (like door handles, tables and chairs — even the showroom cars), and spraying the building’s glass windows with cleaning agents as if they were Santa’s meticulous elves.

The discussion between service attendant and customer over what type of service is to be done is usually kept short and sweet, as these service requests and the parts needed (which, ideally, would already be ordered and prepared by then) are already discussed in detail prior to arrival.

For payments, Mazda Makati also offers contactless payment options, wherein customers could choose to do online banking transfers instead of having to physically hand over and touch money.

All common touch points of your car are also cleaned with a potent disinfecting solution before and after the mechanics work on the vehicle. And if you’re one of those people who just prefer to be a tad more cautious (like myself), they now also offer an anti-bacterial/anti-microbial sort of fumigation service, wherein human-safe, disinfecting fumes are blown into your car cabin, so it could also penetrate into your air-conditioning system and wipe out any molds and bacteria in its wake. It costs only a bit over a thousand pesos, and leaves a faint, fresh scent that quickly fades. I like this as a finishing touch, to blow any remaining worries away.

It is also worth mentioning that during the time I visited in late July, I noticed Mazda Makati (specifically) was offering customers a special discount on the purchase of a new car battery — apparently because they had figured that a lot of vehicles that were left unused over several months during the strict ECQ period had lost their battery potency. It was their way of helping to ease the burden of their loyal customers, and was sort of like their special quarantine offer for the month.

Out of curiosity, I chatted with their service manager Rod Abanes and asked what it was like backstage, working during these quarantine months. To my surprise, he revealed that they had actually enjoyed an amazing 90% show-up rate of customers (who had set appointments) — an impressive increase in percentage compared to our once carefree days as customers, when most of us had the luxury of bringing our car over on a whim (as a walk-in client). And since everything had inevitably become so structured, the turnaround times of their work had also become shorter. High punctuality means greater efficiency for the workers, and less waiting time for the customers.

Rod also pointed out that they find it rather convenient that Mazda’s YOJIN (free three-year PMS) involved no payments, and therefore often excluded any need for money exchange. “Now, we’re even busier than ever!,” he exclaimed, while making reference to the inevitable backlog due to the ECQ weeks when casas were not yet allowed to operate.

As a courtesy to its clients, Mazda also made some adjustments to the period when vehicle owners could still claim their free Yojin PMS. More specifically, people whose cars’ PMS dates fell within the strict ECQ weeks were given a grace period for claiming the service. It was an important move, as Mazda holds strict rules when it comes to its free PMS checkups: Miss one within the designated times, and you forfeit the rest. But clearly, exceptional times call for exceptions.

Semirara Mining and Power posts 61% profit fall

Semirara
CONSUNJI company’s power generation business reports mixed results. — SEMIRARAMINING.COM

SEMIRARA Mining and Power Corp. reported a 61% drop in after-tax income to P2.2 billion in the first semester as quarantine policies enforced since March pulled down coal demand and electricity sales.

The Consunji-led listed firm netted P1 billion in the second quarter, while it booked P1.2 billion in the first three months of 2020.

Its coal business brought P1.8 billion in earnings contribution, almost down by three-fifths. It sold 5.7 million metric tons (MT) of coal between January and June with prices averaging at P1,765 from P2,229 in the same months a year ago.

The company noted the “historic dips” in coal prices, particularly in April when the benchmark Global Coal, Ltd.’s NewCastle prices plunged to $49.30/MT, touted as “the sharpest drop in six years,” according to Semirara President and Chief Operating Officer Cristina C. Gotianun.

Moreover, the company’s power generation segment recorded mixed results.

Sem-Calaca Power Corp. delivered P726 million to the holding firm in the first half from a loss of P242 million previously.

Its energy sales increased by 22% to 1,095 gigawatt-hours (GWh) on volume improvement after it completed the life extension program for its two units, leading to an outage cut of 53% to 2,750 hours.

Southwest Luzon Power Generation Corp. suffered a P236-million loss, a reversal of its P1.6-billion earnings in the first half of last year, as its energy sales plunged by 43% to 489 GWh with an average price of P2.92 per kilowatt-hour (kWh) from P4.73/kWh last year.

“The decrease in spot market prices in April was also staggering,” Ms. Gotianun said. In the month, prices averaged at P1.40/kWh compared with P6.71/kWh in 2019.

Though it claimed to be “largely unaffected” by the pandemic-induced lockdowns, the listed company has deferred P3.75 billion worth of capital expenditure projects to next year as part of its attempt to stay afloat around this time of a public health crisis. — Adam J. Ang

Palay farmgate price declines 0.5% in mid-July to P18.49/kg

THE AVERAGE farmgate price of palay, or unmilled rice, fell 0.5% week on week to P18.49 per kilogram in the second week of July, with the price up 3.9% against year-earlier levels, according to the Philippine Statistics Authority (PSA).

In its weekly update on palay, rice, and corn prices, the PSA said the average wholesale price of well-milled rice fell 0.4% to P39.05 while the average retail price fell 0.3% to P42.27.

The average wholesale price of regular-milled rice fell 0.3% to P35.50 while the retail price fell 0.1% to P38.35.

The farmgate price of yellow corn grain was flat week on week at P12.82.

The average wholesale price of yellow corn grain rose 0.2% to P21.12 while the retail price rose 0.1% to P25.75.

The farmgate price of white corn grain fell 0.4% to P14.05.

The average wholesale price of white corn grain fell 0.8% to P17 while the retail price rose 0.4% to P28.20.

The PSA released two weeks’ worth of data in its latest report. During the first week of July, the farmgate price of palay fell 0.3% to P18.58 per kilogram — with prices up 4.5% year on year.

Meanwhile, the farmgate prices of yellow corn grain and white corn grain rose 0.4% and 0.8% to P12.82 and P14.11, respectively. — Revin Mikhael D. Ochave

Debt yields drop on GDP

YIELDS ON government securities (GS) fell last week following news that the Philippine economy entered a recession, increasing demand for these papers.

Debt yields declined 6.6 basis points (bps) on average week on week, based on the PHP Bloomberg Valuation Service Reference Rates of Aug. 7 published on the Philippine Dealing System’s website.

“The larger than expected contraction in GDP (gross domestic product) spurred buying interest as investors speculate on prolonged economic weakness and increased chances of further BSP (Bangko Sentral ng Pilipinas) action,” ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said in an e-mail.

“Dealers and investors alike continued to park funds in the local bond market as the reimplementation to stricter containment measures and… the economy registering a deeper contraction opened a room for speculation of more stimulus needed as the economy officially enters into a recession,” Robinsons Bank Corp. peso sovereign debt trader Kevin Palma said in a Viber message.

The Philippine economy shrank for the second straight quarter, plunging into a recession for the first time in nearly three decades. The second-quarter GDP, which recorded a 16.5% slump, was the biggest contraction on record based on available government quarterly data dating back to 1981, eclipsing the 10.7%. drop in the third quarter of 1984.

For the first half, GDP averaged -9%, lower than the government’s initial expected contraction of 2%-3.4% this year, as well as the later-revised 5.5% decline.

A few days before the GDP results were released, President Rodrigo R. Duterte put Metro Manila, Laguna, Cavite, Rizal and Bulacan back under modified ECQ (MECQ) to slow the rise in COVID-19 cases. The new lockdown began on Aug. 4 and will last until Aug. 18 after exhausted health workers asked for a “timeout” to ease the pressure on the healthcare sector. 

“Apart from this, trading activity remained relatively light with most players waiting for the new 5-year retail Treasury bonds (RTB 05-13) to set the tone in the market once it lists [this] week,” Mr. Liboro added.

The RTBs, which were offered in denominations of P5,000, are deemed as low-risk instruments with relatively high yields. These five-year fixed-rate bonds, which were offered until last Friday, will be issued this Wednesday and mature on Aug. 12, 2025. The papers will be listed on the Philippine Dealing and Exchange Corp.

This is the second time the Bureau of the Treasury has offered retail bonds this year. The government raised a record P310.8 billion via three-year RTBs in February — P250 billion in new money or fresh funds and P60.8 billion from the exchange offer program.

At the secondary market last Friday, yields were lower than week-ago levels across all tenors, except for 20-year papers which inched up 5.6 bps to 3.588%.

The yield on the 91-day Treasury bill went down 14.1 bps to 1.288%. The 182- and 364-day papers likewise declined 7.1 bps and 1.5 bps, respectively, to fetch 1.535% and 1.79%.

At the belly of the yield curve, rates of two-, three-, and four-year Treasury bonds (T-bonds) went down 3.5 bps (2.009%), 4.7 bps (2.143%), and 5.4 bps (2.265%), respectively. Yields on the five- and seven-year papers also dropped 6.2 bps (2.381%) and 5.7 bps (2.585%).

At the long end, rates of the 10- and 25-year T-bonds decreased 8.2 bps and 21.8 bps, respectively, to 2.693% and 3.665%.

“Right now, COVID-19 (coronavirus disease 2019) still dictates everything with both health and economic authorities still trying to find the perfect equilibrium,” Robinsons Bank’s Mr. Palma said.

“For the week, local bond yields may trade sideways albeit with downward bias as the market continues to put their excess cash to work,” he added. — Michelle Anne P. Soliman

Makeover: UK fashion bible Vogue turns serious for September

VOGUE.CO.UK

LONDON — Misan Harriman hopes to encourage employers to cast the recruitment net more widely with his Vogue cover portrait of influential Black activists in place of the usual pouting stars.

Footballer Marcus Rashford, who helped force a UK government U-turn on children’s meal vouchers, and Adwoa Aboah, a model and mental health campaigner are featured with the banner “Activism Now, The Faces of Hope” on the front of the fashion bible.

For Harriman, the first Black male photographer to shoot a UK Vogue cover, the picture is “really of this moment,” reflecting a summer of protest for social justice following the death of George Floyd in Minneapolis.

It was Harriman’s pictures of London’s Black Lives Matter movements that brought him to the attention of UK Vogue Editor-In-Chief Edward Enninful, himself the first Black person to lead the magazine.

Vogue needed to change in the wake of the protests and the coronavirus pandemic, Enninful told the BBC, and that is what led to Harriman’s cover for the September issue.

“You couldn’t just sell, you know, beautiful clothes and shoes when the world was going through such a crisis,” the editor said.

Leafing through the magazine in his garden, Harriman said he felt cover stars Rashford and Aboah represented both hope and empathy and reflected on his own achievement.

He is the first Black man ever to shoot a Vogue cover after Nadine Ijewere became the first Black photographer to shoot a cover when she did the January 2019 issue.

“If you’re looking for a talent in a non-diverse place then it doesn’t matter because you’ll never see the talent,” he said in an interview.

“So I think you have to cast the net wide. I’m not the only black photographer — there are thousands, hundreds of thousands, of amazing black photographers out there.”

The September issue traditionally sells more copies as fashions shift from summer to winter. Last year it was guest-edited by Meghan, Duchess of Sussex, and featured influential women on the front. — Reuters

The business of living and why living should be our business

DEPENDING on how you look at it, the successful lobby of medical frontliners to get critical areas under tighter quarantine control (as it turns out, modified enhanced community quarantine or MECQ) is either a blessing or a curse. On my Facebook feed, I’ve seen very strong arguments for and against the measure, and there are truly valid points for both.

One thing’s immutable: At this point, the pandemic that COVID-19 (coronavirus disease 2019), the blackest of black swan events, has wrought irreparable (at the very least, over the short term) damage to our economy. Businesses, big and small, are reeling. Whether well off or not, hardly anyone can admit at this point that he or she has not been affected.

My heart bleeds for workers bereft of public transportation and have to resort to riding bicycles or even walking a long way just to get to and from work, the jeepney drivers who have been denied a living, waitstaff who have no recourse but stay home and weather this storm within a storm, salesclerks of shuttered businesses, SME hopefuls who had once great and surefire enterprises but now are gutted.

Being cognizant of them, of course, in no way should diminish the deeds and commitment of our valiant medical workforce. What it does is paint a more complete picture of the hellish 2020 we’ve had thus far. This is what we all need to do: Have a macro view where we take stock of what we’re going through. People need a livelihood, true. But they deserve to live safely as well.

And let me be clear: Lives should always be more important than anything else, and I’m sure no one will argue with this statement. By this measure, the biggest tragedies are the lives cut short by COVID-19; people shedding their mortal coil without family by their side, and denied of the wake they deserve. No one deserves to go through that, and we should do anything to prevent that.

***

As for the car industry, we know that, based on recent reports from the Chamber of Automotive Manufacturers of the Philippines, Inc., Truck Manufacturers Association, and Association of Vehicle Importers and Distributors that sales are beginning to trend upward — though still nowhere near pre-COVID-19 numbers.

I reached out to Autohub Group President Willy Tee Ten for his comment on the new MECQ imposition. “Hopefully, we’ll see no further dip in terms of sales,” he said. “Fortunately, we’re also in the two-wheel segment as well, and there’s continuous segment growth nationwide. We will still continue to do what we’ve been doing for the past months which is the full transformation of our business to Brick and Click (which) pushes all our sales digitally.”

He continued: “We work from home, and make necessary advancements to our Autohub Mobile App for aftersales. We retail all our accessories utilizing all our social media platforms, do synergistic sales among the companies of the Autohub Group and cultivate more partnerships collaborations with possible partners that will benefit both our numbers.”

Meanwhile, multi-brand dealer principal Vincent Licup stated, “In terms of customer inquiries or people waiting to buy a car, we’ve seen an increase.” However, as often mentioned by auto executives we’ve interviewed these past months, crucial to the renaissance of the industry is the willingness of banks to okay more car loan applications during this time.

To be fair though, financial institutions are being understandably more careful these difficult days when a lot of people have lost their jobs, been forced to take pay cuts, or belong to companies that are on the brink of collapse.

Still, Mr. Licup observed, “All banks are now aggressive. As expected, they are all geared toward recovery from NPLs (nonperforming loans) by supporting consumer financing.”

Having said that, Mr. Licup revealed bank decisions have been lengthened from “the usual 48 hours to five days… The only issue is they are on skeleton workforce, so that cycle — actual CI or credit investigation and the processing of these reports — takes longer.”

Even more telling from the executive: The previous approval rate of 80% is now down to 40%.

For now, the tug-o-war between factors stoking the flames of car sales and ones that dampen them continues. Mobility (particularly public transportation) will be an issue while there is no vaccine, so there may yet be demand — pent-up or otherwise — even if the situation is not so normal.

“I really hope this will be the last MECQ,” continued Mr. Tee Ten. “We’re looking forward to GCQ again, and to when we can fully adjust to the new norm.”

There’s always hope.