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SEC warns public against Align Assets’ unauthorized investment scheme

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

REUTERS

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

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

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 46th 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

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

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

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

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

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.

Investors lukewarm on JG Summit after posting net loss

INVESTORS were on the sidelines last week after Gokongwei-led JG Summit Holdings, Inc.’s bottom line swung to a net loss in 2020.

A total of 4.69 million JG Summit shares worth P282.57 million were traded from March 29 to 31, data from the Philippine Stock Exchange showed.

Financial markets were closed on April 1 and 2 in observance of the Holy Week.

Shares in the holding company ended at P59.75 apiece last Wednesday, inching up by 0.1% than the previous week’s P59.70-per-share finish. Year to date, the stock fell by 16.1%.

“[JG Summit] may have been affected by the re-enforced movement and travel restrictions, and the uncertainty as to whether they will be extended for a few more weeks in April,” Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a Viber message.

Mr. Pangan noted the holding company’s air transport arm and petrochemical segment as some of the contributors to JG Summit’s loss due to lower sales as well as the selling prices swayed by the overall weaker global demand.

“With the conglomerate’s diversified portfolio with exposure to food, real estate, air transportation, petrochemicals, and banking to name a few, its performance for the year may still greatly depend on the country’s movement and travel restrictions, as well as other guidelines that the government will enforce amid the ongoing pandemic,” Mr. Pangan added.

JG Summit shares traded sideways last week “and ended basically flat from a week before despite reporting a net loss for the full year of 2020 which means it was already factored into the price,” AAA Southeast Equities, Inc. Head of Research Christopher John A. Mangun said in a separate text message.

In a disclosure to the local bourse last Wednesday, JG Summit reported a consolidated net loss of P468 million last year, dragged by booking nonrecurring fuel hedging losses and a one-off impairment charge from its investment in Manila Electric Co. This was a turnaround from the P31.29-billion attributable net income posted in 2019.

Meanwhile, the company’s consolidated revenues plunged by 27% year on year to P221.6 billion.

JG Summit has stakes in food (Universal Robina Corp.), air transportation (Cebu Air, Inc.), real estate (Robinsons Land Corp.), petrochemicals (JG Summit Petrochemical Corp.), and banking (Robinsons Bank Corp.), among others.

Mr. Mangun said Cebu Air’s higher-than-expected P22.2-billion net loss ate into JG Summit’s bottom line.

“The stock (JG Summit) has been trading flat for the last two weeks… It is basically moving with other blue chips with a slight negative bias due to the weakness in CEB,” he said, referring to the ticker symbol of Cebu Air, the operator of budget carrier Cebu Pacific Air.

“We may have to see how and when the air transportation restrictions will be eased, as this will greatly help with the conglomerate’s earnings recovery. If vaccines are rolled out as planned and COVID-19 (coronavirus disease 2019) cases decline in the coming months, then we might witness some easing of losses for JG Summit’s air transportation segment this 2021,” Mr. Pangan said.

He added market participants may have opted to stay on the sidelines given that it was a shortened trading week ahead of the Holy Week holidays.

For this week, Mr. Mangun placed the stock’s major support at P56.00 and he doesn’t expect that it will be breached, while resistance at P66.60.

Mr. Pangan pegged JG Summit’s immediate support at P56.00, while immediate resistance at P68.70 and next resistance at P74.50. — Jobo E. Hernandez

African swine fever inflicts renewed toll on northern China’s hog herd

CHINA pork & hog prices under pressure as fresh hog disease outbreaks boost slaughter rates. — REUTERS

BEIJING — A wave of African swine fever outbreaks this year has wiped out at least 20% of the breeding herd in northern China, industry sources and analysts said, exceeding expected losses and raising fears about the potential for further impact in the south.

The estimates point to the extent of the disease’s resurgence in the first quarter of 2021 after more than a year of declining outbreaks, heralding a significant setback to China’s efforts to replenish its hog herds after African swine fever reached the country in August 2018 and wiped out 50% of the country’s pigs within a year.

The virus’ impact slowed by late 2019 as pig numbers fell and large producers learned to minimize its spread by removing infected pigs from herds early, a process the industry calls “tooth extraction.”

But an exceptionally cold winter, a higher density of pigs following a year of restocking, and new strains of swine fever triggered a fresh wave of outbreaks across the northeast, northern China and Henan province, the country’s third-biggest hog producing province.

“At least 20% of the herd was affected, maybe even 25%” in the northern and northeastern Chinese provinces because of outbreaks during the first quarter, said Jan Cortenbach, chief technical officer at feed maker Wellhope-De Heus Animal Nutrition.

Henan lost between 20% and 30% of its breeding sows, a report by Founder Cifco Futures said on Monday, adding the damage could be “irreversible.”

Beijing Orient Agribusiness Consultant Ltd. said in a report last month that sow stocks in northern China in March fell by between 25% and 30% compared to February.

“This feels like 2018, 2019 all over again,” said a China-based manager with a company that supplies large hog producers.

Several customers in northern China have lost thousands of sows in recent months, he added, with some losing more than half of their breeding stock.

The Ministry of Agriculture and Rural Affairs did not respond to a fax seeking comment on a resurgence of the disease and significant losses over the winter.

Food security is a sensitive issue in China and the government has confirmed few African swine fever outbreaks since the virus began spreading. Numerous industry insiders have described the impact as worse than official data show. The disease is not harmful to humans.

The agriculture ministry reported eight African swine fever outbreaks in the first quarter, mostly on small farms or in pigs in transit in southern China. It said the sow herd grew by 1.1% in January versus December and a further 1% in February.

NORTHERN WAVE
Shandong and Hebei provinces in northern China are both among the country’s top six pig producing provinces and the first quarter outbreak was especially severe in Shandong, Beijing Orient said.

New Hope Liuhe, China’s fourth-largest hog producer, told investors in March that African swine fever had a large impact in Hebei and northern Shandong, where it has many farms.

Though losses varied between companies, “in general it may be more serious than in early 2019 when most companies did not master prevention and control methods such as precise tooth extraction,” said Yan Zhichun, the company’s chief science officer, according to a transcript of a call with investors on March 4.

A considerable portion of New Hope’s farms in Hebei and Shandong were impacted by “atypical” swine fever strains, said Yan. The firm had previously reported finding a less deadly, but chronic form of swine fever on its farms.

It said its sow herd shrank 7.5% from December to February, or by 90,000 pigs, because of African swine fever as well as the elimination of inefficient sows.

The agriculture departments for Hebei, Shandong and Henan provinces did not reply to questions sent by fax about the resurgence of swine fever.

PIGLET PRICES RISE
While live hog prices fell sharply from January to March, piglet prices are rising because of the hit to the breeding herd, Changjiang Securities said in a note this week.

Piglets cost on average more than 1,800 yuan ($273.94) per head, it said, not far off the record 2,356 yuan in February 2020, and significantly up from 995 yuan in November.

That will eventually translate to higher pork prices.

Producers in the south are on high alert, said industry sources, after rain and floods were blamed for swine fever outbreaks last year.

“With the arrival of the rainy season in the second quarter, it is still unknown how swine fever will impact the south,” said the Changjiang analysts. — Reuters

Style (04/05/21)

5 sandal styles for summer

THE PERFECT footwear to go with hot weather outfits are undoubtedly sandals. These trendy styles will easily match with just about anything: slides, which are easy to slip on and off, and as easy to wash and clean; flip-flops for when you’re off to take a dip in the pool or splash around the beach; wedges are a closet staple even after summer, versatile shoes that work whether you dress up and down; flat sandals that are easy to slip-on, are stylish and chic; strappy velcros are the trendy sandal-of-the moment, plus, they’re comfy and fit snugly on your feet. Check out the sandals from SSI brands online at www.Trunc.ph or through The Specialist, SSI’s At-Home Concierge service (facebook.com/SSILifePH).

Tumi luggage collection inspired by McLaren

LEADING international travel and lifestyle brand, Tumi has unveiled its new collection designed and developed in partnership with luxury supercar maker and Formula 1 team, McLaren. McLaren’s designers, engineers, and racers travel thousands of miles around the world each year in pursuit of perfection. Just as each driver relies on their car to get them across the finish line, the team depends on their luggage and travel necessities to get them to their destination. That inspiration manifests in the superior made-to-last quality of the collection. Since announcing in 2019 that the two companies would work together, Tumi’s Creative Director Victor Sanz and Rob Melville, McLaren’s supercar Design Director have created a premium capsule collection of elegant business, travel and everyday essentials. The capsule collection consists of nine pieces. Each encompasses elements of McLaren’s sleek, bold supercars and race cars. All are highlighted with McLaren’s signature Papaya colorway and feature CX6  carbon fiber accents. Key travel pieces include the Aero International Expandable 4 Wheel Carry-On and the Quantum Duffel. The carry-on is crafted in a hybrid of materials, including Tegris, an extremely hard-wearing thermoplastic composite found in race cars. The hard shell is contrasted by a moulded-fabric front panel with a supercar-influenced design that is echoed throughout the collaboration. The interior features a compression strap that takes its cues from the six-point racing harnesses found in its race cars and track-only models such as the limited-edition McLaren Senna GTR. The Velocity Backpack was created to keep wearers connected all day long thanks to the inclusion of a USB port and padded laptop compartment. Tumi’s hallmark “Add-a-Bag” sleeve makes it a fitting companion to the collection’s carry-on. The Torque Sling and Lumin Utility Pouch are additional contemporary styles for light-carry and hands-free days. The Orbit Small Packing Cube, Trace Expandable Organizer, and split compartment Teron Travel Kit are all ultra-portable accessories to keep belongings protected, organized, and readily available. The collection is now via TUMI.com, Tumi’s global retail stores, McLarenstore.com, and select McLaren retailers globally.

Michael Kors releases the Bradshaw bag

MICHAEL Kors has come up with a small convertible shoulder bag called the Bradshaw, a refined take on the iconic baguette bag. Inspired by 1990s style, the bag features a compact shape, fold-over silhouette, and short shoulder strap. Modern design elements give it of-the-moment appeal. Smooth leather is punctuated by high-shine hardware, like a gleaming push-lock fastening that opens to an interior sized to hold all the essentials, and an MK charm that, in a design first, is meticulously incorporated into the shoulder strap. Available in an array of luxe colors, this bag makes for the perfect staple in any city girl’s wardrobe. For something a little larger, the Bradshaw Messenger is the perfect go-to. The bag features the same ’90s-inspired baguette shape as the small Bradshaw, but with a roomier interior and a utilitarian webbing strap, which is embellished with an MK charm. In the Philippines, Michael Kors (MK) is exclusively distributed by Stores Specialists, Inc., located at Central Square in Bonifacio High Street Central, Greenbelt 5, Newport Mall, Power Plant Mall, Rustan’s Makati, and Shangri-La Plaza Mall, and online at Trunc.ph and Rustans.com. Visit www.ssilife.com.ph for details.

GUESS opens its first outlet store in Batangas

AMERICAN clothing retailer GUESS recently opened its first-ever outlet store in Batangas at The Outlets at Lipa. The GUESS outlet store offers shoppers high quality apparel and fashion accessories such as watches, jewelry, perfumes, bags, and shoes at discounted rates. It joins other big lifestyle brands at The Outlets such as Adidas, Nike, H&M, Puma, Cotton On, Ipanema, Samsonite, and Speedo. The Outlets at Lipa is one of Luzon’s largest outlet shopping destinations, offering products from some of the biggest global brands at a discount all-year-round. It is located within LIMA Estate in Lipa-Malvar, Batangas, a 700-hectare Philippine Economic Zone Authority-registered economic zone that is home to 127 industrial locators, 167 retail and restaurants spaces, a 138-room four-star hotel, a transportation hub, over 2,000 households, and more than 58,000 employees.

Easy Spirit offers comfy shoes

THE 35-YEAR-OLD brand Easy Spirit’s mission is to be makers of shoes and experiences that are all about making life easy for all women. Now exclusively distributed by Rustan Marketing Corp., Easy Spirit will once again be accessible to all Filipinas who believe comfort should be uncomplicated. This season, Easy Spirit offers all-day walking shoes, mules, and sandals made for everyday ease. Each pair offers an easy support system and unique benefits. Easy Spirit’s product range includes orthotic friendly and ultra-flexible, breathable and super lightweight options with easy-on and easily adjustable designs. The Traveltime Family is a collection of sandals, sneakers and more, inspired by the comfort of Easy Spirit’s No. 1 bestselling Traveltime mule. The Spring collection also includes Walk-Easy Essentials, sneakers, sandals and mules that go the extra mile in comfort. Select styles feature the Easy Spirit 3 Triple the Comfort technology — three layers of advanced technology to soften each step. The Comfort Around the Clock collection offers footwear that can be worn from work to commute, from all-day wear and to every occasion. The Sandals collection is a one-stop shop for lightweight and supportive sandals. One step closer to a green future, Easy Spirit also offers Easy Eco, a collection for a more sustainable carbon footprint with select components made with recycled materials. Now all available on Zalora, this season’s collection combines the latest trends with comfort from denim and color-pop tie-dyes to flirty florals, artisan materials in classic and colorful shades and lightweight active knits designed with materials crafted from recycled components. The shoes at the Easy Spirit Flagship Store on Zalora are now available for introductory prices as low as P3,250 on select styles, plus there is a 30% off voucher that can be used until April 11.

FedEx pallets become upcycled furniture

FEDEX Express, a subsidiary of FedEx Corp., is collaborating with Filipino furniture designer Trademark Kawpeng Designs (TMK), to breathe new life into discarded shipping pallets in support of an emerging circular economy and finding ways to reduce environmental impact. A Manila-based furniture and home decor start-up known for its unique made-to-order pieces that embody Scandinavian minimalist functionality, TMK works closely with clients in realizing their designs using various quality materials. For this special project with FedEx, TMK created sustainable furniture by repurposing and upcycling wooden pallets from FedEx. To transform the donated pallets, they were first cleaned, dried, sanded, and treated. TMK’s Matti Kawpeng then crafted them into a collection of functional furniture, including a study desk, an arm table, a side table, and a media console. The rest were turned into useful crates and were marketed to TMK clients. Proceeds were used to subsidize bicycles for TMK workers who were affected when public transport stopped during the coronavirus lockdown. A portion of the sales generated from donated materials are used for employees’ needs, such as their daily uniforms, snacks, coffee, and maintenance of their bikes. Check out Trademark Kawpeng Designs on Facebook and @tmkawpeng.designs on Instagram for more pieces and design inspirations.

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