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Online auction offers art toys

SALCEDO Auctions’ subsidiary Gavel&Block will hold its “editions” online auction, which includes art toys, on June 27.

“As auction houses, collectors and art and design lovers continue to adjust to society’s ever-changing circumstances, we see new mediums of expression take the spotlight,” Salcedo Auctions director Richie Lerma said in a press release. “The accessibility of ‘editions’ is a sign of the times, where we constantly search for things that connect us. So whether it’s a fine art print or a collectible art toy, there’s something about the inherent fun and excitement of multiple originals that reminds people why we make and collect art in the first place.”

The sale features 228 lots ranging from fine prints to sculptures. The online auction has also added art toys as a new category to the sale.

“Given how well-received these pieces have been since we started offering them last year, we’re very excited to include this category in the sale,” Salcedo Auctions managing director Victor M. Silvino said in a press release. “Art toys have definitely held their own in the local and international auction scene and we’re excited to see them become a regular fixture in our auctions.”

The new category for the upcoming online auction includes works by internationally acclaimed Japanese artists, including Yayoi Kusama’s Pumpkin (in red and white, and black and yellow) and Takashi Murakami’s multicolored Mr. Dob a Figure, collaborations by KAWS, and the estate of Jean-Michel Basquiat.

Other items on sale are one of Pablo Picasso’s rare serigraphs (No. 182 of 500), Philippine costume studies by Justiniano Asuncion, fine art prints by National Artists for Visual Arts Arturo Luz and Benedicto “BenCab” Cabrera; and by Justin Nuyda and Anita Magsaysay-Ho.

Register to bid at salcedoauctions.com. To view the auction catalog, visit https://salcedoauctions.com/auction/99. For inquiries, e-mail info@salcedoauctions.com or contact 0917-8257-449 or 0917-107-5581. Follow @gavelandblock on Facebook and Instagram. — MAPS

SEC warns public against Daily Passive investment scheme

THE Securities and Exchange Commission (SEC) has raised the flag against Daily Passive Btc Ltd, which it said is operating an unlicensed investment scheme.

In an advisory on its website, the country’s corporate regulator warned the public against engaging with people representing Daily Passive and are offering investment packages.

It said this group is operated by the same people behind Bitrade/Bitrade Bitcoin Trading Ltd/Bitrade Ltd Ph, which the SEC had tagged as an unlicensed investment group in March.

The regulator said Daily Passive does not have a registration with the commission and is not authorized to solicit investments from the public.

Through its investigation, the SEC found that the group operates through Facebook accounts run by different individuals, and offers several investment packages worth P1,000 to P100,000.

It promises guaranteed returns of 40% per month and offers other ways to earn such as by recruitment and referrals.

Operating this business without a license from the SEC is a violation of the Securities Regulation Code, and may result in a maximum fine of P5 million, imprisonment of up to 21 years, or both. The SEC warned that the penalty applies for all individuals that acted as salesmen, brokers, dealers or agents of Daily Passive.

It also said the Bayanihan to Heal as One Act, or the government’s emergency law in response to the coronavirus pandemic, punishes cyber crimes that take advantage of the crisis through scams, phishing, fraudulent emails and other similar activities.

“[T]he public is hereby advised to stop investing and exercise self-restraint from investing their money into such high-yield risk investment scheme and to take the necessary precautions in dealing with the above-named entity,” the SEC said. — Denise A. Valdez

New Benguet facility to cut wastes from unsold food crops

A P20-MILLION food processing facility in La Trinidad, Benguet will be established in order to reduce waste from unsold crops, Agriculture Secretary William D. Dar said.

In a statement, Mr. Dar said the La Trinidad processing facility will complement the Benguet Agri-Pinoy Trading Center (BAPTC) and is geared towards adding value to vegetables and fruits produced by farmers in Benguet and elsewhere in the Cordillera Administrative Region (CAR).

During the quarantine, when the area’s produce farmers lost access to key markets, growers in Tinoc, Ifugao reportedly dumped their unsold tomatoes.

“There should be no reason for farmers to lose when harvest is abundant. Dumping will not happen again,” Mr. Dar said.

DA-CAR Regional Executive Director Cameron P. Odsey said that the DA regional office has negotiated with other vegetable buyers to purchase tomatoes from farmers in Tinoc and nearby areas.

“As of June 14, the Tinoc farmers were linked to eleven groups of new buyers, purchasing a total of 26 metric tons of tomatoes. This week, the farmers were able to sell 18.5 metric tons of tomatoes, totalling P166,000. Moreover, seven other private buyer-entities committed to procure vegetables from other production areas in the region,” Mr. Odsey said.

Meanwhile, Mr. Dar said the food processing facility will also serve as a learning and training center for farmers interested in processing their harvest into high-value products.

“We want our Filipino farmers to be more than growers. We want them to become entrepreneurs. This move will level up their game, and give them more financial benefits,” Mr. Dar said.

Funding for the P20-million food processing facility will come from the Bureau of Agricultural Research for disbursal to Benguet State University, which oversees the management of the BAPTC. — Revin Mikhael D. Ochave

Peso to weaken on geopolitical concerns

THE PESO is likely to weaken versus the greenback this week amid continued geopolitical tensions and as the market awaits the release of local budget deficit data.

The local unit closed at P50.06 per dollar last Friday, appreciating by 11 centavos from its P50.17 close on Thursday, according to data from the Bankers Association of the Philippines.

Week on week, the currency also strengthened by 13.50 centavos from its P50.195 close on June 11.

The peso got stronger on news on the country’s external debt stock, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

The country’s external debt dropped 2.6% to $81.4 billion as of March from the $83.6 billion as of end-December 2019, Bangko Sentral ng Pilipinas data released Friday showed.

However, the debt stock rose by $990 million from its standing as of end-March 2019.

The external debt to gross domestic product (GDP) ratio, which is a solvency indicator, improved to 21.4% from 22.2%.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the peso closed stronger on last-minute demand despite some risk-off sentiment seen in the morning over worries on a possible second wave of coronavirus disease 2019 (COVID-19) infections.

For this week, the market will monitor developments on COVID-19 infections and the continued easing or tightening of restrictions to prevent the spread of the virus, Mr. Ricafort said.

Mr. Ricafort added that tensions between China and India, South and North Korea, as well as the US and China may also impact dollar-peso trading.

US President Donald J. Trump on Thursday again threatened to cut ties with China only a day after top US diplomats told Beijing that Mr. Trump did not consider decoupling the US and Chinese economies as a viable option.

Apart from the trade tensions, the world’s two biggest economies have been dealing with multiple points of friction, with the US accusing China of not being transparent about the outbreak and their differences over Beijing’s moves related to a security legislation on Hong Kong.

In Asia, at least 20 Indian soldiers were killed at their borders in the Himalayan region. China has not released any casualty figures for its troops.

Tensions also heightened in the Korean peninsula last week after North Korea blew up its joint liaison office with South Korea following the North’s threat against defectors that have been sending propaganda leaflets into the North.

Meanwhile, a key data release this week that could impact market sentiment is the budget deficit report, Mr. Asuncion said.

“If the budget balance indeed comes this week, expect the peso to depreciate,” he said.

The budget balance was at a deficit of P273.99 billion in April, reversing the P86.9 billion surplus in the same month of 2019 and bigger than the P59.5-billion gap in March. This was on the back of the surge in state spending for subsidy programs amid the lockdown.

The May budget balance data is set to be released by the Bureau of the Treasury on Tuesday.

For this week, Mr. Ricafort expects the peso to trade within the P49.90 to P50.20 band versus the dollar while Mr. Asuncion gave a P50.00 to P50.30 forecast range. — L.W.T. Noble with Reuters

Cemetery of Forgotten Books author Carlos Ruiz Zafón, 55

CARLOS Ruiz Zafón, the Spanish author of internationally best-selling novel The Shadow of the Wind, has died. He was 55.

Hailed as the most read Spanish author since Miguel de Cervantes (Don Quixote), Mr. Ruiz Zafón died in Los Angele s last Friday, his publisher Editorial Planeta announced.

Mr. Ruiz Zafón grappled for two-and-a-half years with colon cancer, “a harsh disease, which he endured with irony and good temper to its invincible end,” his literary agent Antonia Kerrigan said in a statement.

Weidenfeld and Nicolson, his English publisher, wrote in a Twitter post that it is “deeply saddened” by the Spanish writer’s passing.

In a post via Twitter, Spanish Prime Minister Pedro Sanchez called him a “key novelist of our time.”

Mr. Ruiz Zafón’s works have been translated to more than 40 languages and have sold more than 38 million copies worldwide and garnered a number of awards.

Born on Sept. 25, 1964 in Barcelona, Mr. Ruiz Zafón worked in advertising before he made his debut in the literary world with the publication of young adult novel The Prince of Mist (El príncipe de la niebla) in 1993 which won Spain’s Edebe Award for Young Adult and Children’s Literature. This was followed by The Midnight Palace (El palacio de la medianoche, 1994), The Watcher in the Shadows (Las luces de septiembre, 1995), and Marina (1999).

Mr. Ruiz Zafón reached a breakthrough when he published a more adult-oriented mystery The Shadow of the Wind (La sombra del viento) in 2001. It was translated into English (as were his subsequent books) by Lucia Graves, daughter of the poet Robert Graves, in 2004 and became a massive international hit after selling more than 15 million copies across the globe.

Set in 1940s Barcelona, the novel follows as Daniel Sempere’s bookseller father takes him to the labyrinthine Cemetery of Forgotten Books, where he picks up a copy of The Shadow of the Wind written by an obscure author Julián Carax. With the help of his friends, Daniel seeks the true origins of Julián Carax and the mysterious figure that destroys every copy of the book.

“If you thought the true Gothic novel died with the 19th century, this will change your mind. Shadow is the real deal, a novel full of cheesy splendor and creaking trapdoors, a novel where even the subplots have subplots,” American novelist Stephen King wrote in a review of the novel in 2007.

The novel is the first book set in the Gothic mystery, Spanish Civil War-era set Cemetery of

Forgotten Books quartet — drawing heavily on the literary stylings of Charles Dickens, Edgar Allan Poe, and Alexandre Dumas to name a few. The rest of the books in the series are The Angel’s Game (El juego del ángel, 2008), The Prisoner of Heaven (El prisionero del cielo, 2011), and The Labyrinth of the Spirits (El laberinto de los espíritus, 2017).

There are now literary walking tours based on the book series in the Gothic quarter of the already tourist-packed Barcelona.

UK-based news outlet The Independent in 2012 noted Mr. Ruiz Zafón’s fascination with his hometown Barcelona as “enthralling a character as Dickens’s London or [Christopher] Isherwood’s Berlin.”

Since the 1990s, he divided his time between Barcelona and Los Angeles, where he dabbled briefly with screenwriting.

In 2016, Mr. Ruiz Zafón told the Washington Post that he did not want his books to be adapted into movies as adapting them would be a “betrayal” of the work.

“If you touch it, it will explode. Nobody can make it better because nobody knows how it was put together. A lot of devices, they’re pushed to the limit. It’ll explode,” he said.

“I write because I really have no other choice. This is what I do. This is what I am,” Mr. Ruiz Zafón said on his website.

“Sometimes people ask me what piece of advice I would give to an aspiring author. I’d tell them that you should only become a writer if the possibility of not becoming one would kill you. Otherwise, you’d be better off doing something else. I became a writer, a teller of tales, because otherwise I would have died, or worse,” he added.

Mr. Ruiz Zafón is survived by his widow MariCarmen Bellver, to whom The Angel’s Game was dedicated. — Mark T. Amoguis

DTI: refund advance payments for canceled events

ADVANCE payments for events that have been canceled or scaled down due to lockdown restrictions must be refunded, the Department of Trade and Industry (DTI) said.

DTI in a memorandum circular signed June 2 said that advance payments for events that were cancelled due to social distancing restrictions within a community quarantine must be refunded either fully or partially.

The circular includes advance payments for the use of a venue, food, and related services such as vehicle or equipment rental.

Payments made after government restrictions on social distancing are considered in effect do not have to be refunded.

Events covered by the circular include business functions such as conferences, workshops, and planning sessions and personal functions such as birthdays, weddings, anniversaries, and family reunions.

For canceled events, parties that have made payments may use the amount paid for services at a later date up to a year after restrictions are lifted. They may also either receive the full amount paid regardless of expenses after the restrictions were put in place, or get the net amount paid after deducting relevant expenses made before restrictions.

For scaled-down events, paying parties may also avail of services at a later date. They could get refunds proportionate to the agreed scale-down regardless of expenses or after deducting relevant expenses made before restrictions.

Regulations in the Consumer Act of the Philippines and the New Civil Code of the Philippines may be used as bases for filing charges if violations are made.

Reports said that participants in Ironman Philippines have recently sought registration fee refunds for the eventscheduled in October. — Jenina P. Ibañez

Doing digital dance moves in the face of crisis

 

‘Mobility in the New Normal’ webinar gives clarity to the auto industry game plan

I BEG your indulgence as I start off this week’s column expressing a deep sense of gratitude to everyone who made last Wednesday’s inaugural staging of the “Mobility in the New Normal” webinar series of our sister publication The Philippine STAR’s “Wheels” section a success. As I turn over this piece on a Friday, our webinar had tallied more than 232,000 views on the STAR’s FB page alone — breaking records and certainly surpassing our expectations. Kudos to the team behind this endeavor for the hard work, the faith, and the encouragement.

I tip my hat to the powerhouse lineup of panelists who were engaging and animated throughout our discussion (in alphabetical order): Vincent “Vince” Licup, dealer principal handling the Chery, Chevrolet, Foton, MG, and Nissan brands; Atsuhiro Okamoto, president of the country’s leading auto company, Toyota Motor Philippines Corp. or TMP; Cholo Syquia, chief executive officer of Carbay Philippines, Inc., which operates the Carmudi Philippines and Zigwheels Philippines auto portals; and Willy Tee Ten, president of the Autohub Group of Companies which features at 34 (count ’em) automotive and ancillary brands. He also helms the Philippine Automotive Dealers Association which represents around 200 dealerships around the country.

Profound gratitude is also due TMP for sponsoring that episode, and to my BusinessWorld “Velocity” family for being a media partner and a wellspring of good vibes.

During the early days of the novel coronavirus, when it wasn’t even called COVID-19 yet, hardly anyone could have predicted it would reach the pandemic levels of today. But here we are, and the disruption has been felt across a whole spectrum of industries. One of the industries hardest hit, of course, is the automotive sector. Along with shuttered manufacturing plants and dealerships, vehicles also stopped running altogether as people stayed at home to help curb the spread of the virus.

READ ’EM AND WEEP
The result? Well, I want you to look at the slide culled from the recent joint reports compiled by the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA). Total vehicle sales in March for CAMPI and TMA member companies reached 11,029 units, down 63% compared to 29,790 units sold in March 2019. CAMPI President Atty. Rommel Gutierrez attributed this to the shutdown of dealerships in the second half of March as Luzon went into ECQ lockdown.

In April, the figure dropped to an all-time low of 133 units. Last May, the figure leveled to a more respectable 4,788 units — heartening, but still a far cry from the 30,998 units sold in the same month last year. That’s a huge 84.6% decline. As of May, the year-to-date total of 69,463 units this year is still 51.1% lower compared to the same period in 2019.

While these figures taken as a whole paint a grim (albeit expected) snapshot of the year thus far, there’s reason to hope. That’s because while we’ve learned that NCR will still be on general community quarantine until the end of the month, car dealerships have resumed operations for a while now. Car companies and dealerships do not exist in a vacuum; they’ve been adjusting to the challenges and limitations in support of government regulations amid the virus.

Okamoto-san admitted that TMP projects saw a drop of 30% to 40% in sales this year compared to 2019, and that didn’t seem to be particularly surprising anymore to anyone in the panel.

“We had to follow government regulations to stay at home,” joined Willy, and said that one could look at the bleak numbers from either an optimistic or pessimistic standpoint.

It was pretty obvious though that he and the rest of our speakers were looking forward to a recovery, but expressed hesitation on just when an acceptable level of vibrancy would happen. I now wonder if we had held the webinar when the dealerships remained firmly on lockdown. Would the sentiment and general mood have still been light?

OPENING UP
Willy expressed excitement to see the business perk up once ECQ shifted to GCQ. “It’s not yet back to pre-pandemic times, but at least our after-sales department (is operational). Sales is the biggest concern right now (and) banks are key to the automotive industry,” he maintained.

“We hope that the banks will be more relaxed and less stringent when it comes to approvals, so we can increase our figures in the next few months — until things get back to normal.” That was something that Vince had told me, too, during earlier conversations: That one of the keys to the recovery of the industry is banks and their faith in people applying for car loans.

Amid the pandemic and the activity-limiting protocols we all need to practice, auto companies (as with other enterprises) are evolving to leverage whatever business tools they can, such as social media. “Everyone is going online; that’s the only way to go right now,” Vince averred. “That’s the only realistic channel to do sales in now. As Willy said, our sales executives are all working from home.”

He was quick to add that there’s actually an advantage to WFH reality. “Before, there was traffic, and everything had to be face to face. Now, one agent can easily serve 10 to 20 customers a day. There’s no need to do office visits; you just use your fingers.”

Even if Carmudi Philippines and Zigwheels Philippines exist in the digital realm, Cholo confessed that the auto portals were also hit hard by the pandemic’s fallout. “We had leads, but we couldn’t deliver them to the dealerships because these were closed. We had to put our subscription packages on hold,” he rued, and admitted that the business was hit “at a critical” time when Carbay had achieved leadership among the country’s car portals.

The auto-buying appetite of people had understandably waned as well during the lockdown, and Cholo said he noticed people spent more time reading the portals’ newsfeeds than making actual inquiries on vehicles. Still, he revealed with a smile that they have been getting more sales queries now that quarantine restrictions have generally eased.

As dealerships have opened their doors to customers in this new, more cautious normal, there have been small victories as well. “There’s no more waiting now,” Vince observed. “Everything’s by appointment, so it’s more efficient.”

Willy said it’s taking some doing, but he and his people are coping with the demands and limitations. “Before, you would smile as you shook people’s hands. We can’t do that anymore,” he admitted, and rued that runs contrary to Filipinos’ natural hospitality. He has had to keep reminding their people of the protocols. “We have to be mindful of distance, for instance.”

There are also the now-familiar routines and implements: alcohol/sanitizers, temperature scanning, social distancing, disinfecting foot baths. “You have to sanitize vehicles, promote contactless payments,” Willy shared.

And saving people’s jobs and adhering to protocols during this difficult time also warrants cost-cutting measures, multiple shifts. “Some employees would work three days a week, but technicians of course need to work more days,” revealed the Autohub head.

Okamoto-san said that up to 70% of TMP’s people usually holding office at the GT Towers in Makati City are now working from home instead. Of course, those who man the company’s manufacturing plant in Sta. Rosa, Laguna need to be on site, even as they practice standard safety protocols.

DIGITAL DIRECTION
“People have shifted a lot of their usual physical activities onto digital,” commented Cholo, who volunteered that a research firm whose services they contracted discovered that 58% of people increased their online payment transactions when quarantine restrictions happened. About half (51%) turned to online entertainment (Netflix, anyone?), and 48% browsed the Internet to check out meals and delivery services. The auto industry has been an even more dramatic study as 83% of people preferred to go online. Even if this research was conducted when NCR was still on ECQ, the digital shift surely still holds true.

The digital domain veritably allowed people to keep their dealership jobs. Salespeople went online to seek out prospective clients. “We did not have any layoffs; only the implementation of shifts,” reported Vince. “Allowances went to (social media post) boosting, rather than telecoms or gas.” The result was that more prospects were reached per day.

“Digital platforms are the way to go,” underscored Willy, who counts the iconic Mini brand (which recently rolled out a digital showroom) in Autohub’s considerable portfolio. “That and online payment will be the new norm.”

He also said, grinning, “Customers didn’t like to do online payment before. Now, they want to do online or bank-to-bank transactions.” Nonetheless, Willy commented that as digital tools and platforms become more pervasive, Internet connectivity and speed need to be improved, particularly in satellite cities and provinces.

For TMP’s part, MyToyota PH had been introduced early on to get customers into the habit of setting appointments for their dealership visits. “It promotes efficiency and a shorter waiting time,” submits Okamoto-san. Meanwhile, the Toyota Virtual Showroom affords the experience of visiting a dealership “through an easily accessible digital platform… (which enables) anyone to check out their dream Toyota anytime and anywhere. The digital experience enables users to select their preferred vehicle and get a 360-degree view of the available model’s exterior and interior.”

Even more, once a customer has selected a vehicle, “payment estimates can be calculated in the site and personal details may be submitted to connect the customer to their dealership of choice. Dealer representatives will then contact the customer to address further inquiries, offer official quotation and facilitate car purchase,” according to a TMP release.

OPPORTUNITIES
As hinted at by TMP FVP for its Brand and Product Planning Cluster Cristina Arevalo during the company’s recent press conference prior to the launch of the new Wigo, the company is set to roll out a vehicle subscription/leasing service called Kinto.

According to the Toyota’s global website, Toyota Motor Corp. actually established Kinto Co., Ltd. “to manage and operate its beloved-car subscription service that proposes a new user-car relationship. The new company is jointly funded by Toyota Financial Services, Co., Ltd. (a wholly owned subsidiary of Toyota) and Sumitomo Mitsui Auto Service Company, Limited (a member of the Sumitomo Corp. Group).”

We got a scoop as well as we heard more information about the service from the TMP president himself. Okamoto-san said, “The purpose or vision of this Kinto implementation — which has started in Japan, Europe and other regions — (is tied to the fact that) the automotive market is a mainly an ownership market, especially in Philippines. Younger people still want to own vehicle. But in other regions like the Europe or US or China, after Grab or Uber implementation, the customer automotive life is gradually changing from ownership to usership.”

In concert with a new push to reintroduce its TCUV (Toyota Certified Used Vehicle) program, Kinto seems to be laying the foundation for much easier car access, especially in view of the extreme limitations (and risks) of taking public transportation in a COVID-19 reality.

“Toyota is preparing for such a change,” Okamoto-san posited. It’s about making the concept of automotive usership appealing. “Payment is very easy. There’s no down payment, there’s a fixed monthly subscription fee (for about three to four years).”

The TCUV program actually ties into Kinto because after the subscription, the vehicle can go into the used-vehicle pool. The executive described it an “ecosystem” for Toyota and its group of companies — a cycle of retail, trading, leasing, and resale.

This is a buyer’s market we’re in at the moment, joined Willy Tee Ten. All brands are intent to get their inventories moving again, and are offering all sorts of enticements for easier acquisition. If you ask Vince, he has been of the opinion that the demand has never gone away; it merely went into hibernation.

By early indications, there is still a measure of pent-up demand as displayed by that 3,500% spike from the woeful 133 units sold amid lockdown (come to think of it, that’s still 133 units despite all our grief).

What’s beyond the purview of auto brands is, again, the willingness of banks to approve car loans, as these were obviously similarly hit hard by the black swan event that is COVID-19. We can’t blame financial institutions if they take a cautious road and become more prudent with loans. In fact, Vince intimated that banks may ultimately help dictate the segments that will move. For instance, I might apply for a loan toward a mid-size SUV, then be extended a smaller loan amount good for a sedan instead.

In the final analysis, this not-so-new normal is being defined at its core by two crucial factors: The challenges and limitations posed by public transport, and the cautious approach of banks on lending. Add to this a perceived unwillingness (and maybe incapability) of a growing segment of the population (7.3 million are unemployed, and an untold number had their paychecks slashed) to afford a new (or even used) set of wheels at this point, and you have a tug-of-war to see whether our once robust auto industry will stay in the doldrums or be on the road to the recovery.

Gov’t program reaches 830,000 buyers of fish amid virus pandemic

MORE THAN 830,000 persons and 180,000 families have been reached by fish and fishery products offered under a marketing program run by the Philippine Fisheries Development Authority (PFDA).

In a statement, the PFDA said that a total of 53,394 kilograms of such products have been sold under its marketing project, which was recently mobilized to link producers with markets following the disruption resulting from the pandemic.

Since the project’s launch in April 2019, the PFDA said it has expanded to 55 locations and continues to supply consumers despite the coronavirus disease 2019 (COVID-19) pandemic.

The PFDA said the project offers affordable fish and fishery products via retail markets; direct volume sales to groups, institutions, and villages; markets on wheels; and in partnership with a similar Department of Agriculture (DA) program offering direct access to produce.

Retail partners include 22 Waltermart outlets in Metro Manila, Bulacan, Tagaytay City, Nueva Ecija, Tarlac, Pampanga, and Batangas.

The DA and PFDA partnership currently has outlets in 19 locations in Quezon City, Marikina City, Taguig City, Navotas City, Pasig City, and Cainta, Rizal.

Direct volume sale clients include St. Luke’s Medical Center in Taguig and Sikatuna Village, and Don Jose Heights in Quezon City.

The fisheries marketing program also taps trade fairs initiated by local government units. — Revin Mikhael D. Ochave

Here Wigo: Toyota PHL unboxes refreshed version of entry-level hatch

TOYOTA MOTOR Philippines Corp. (TMP) has completed its first digital launch in this new normal as it unveiled the refreshed version of the country’s best-selling entry-level hatchback, the Toyota Wigo. The Wigo first appeared in the market back in 2014, and quickly caught on. Last year, it cornered 69% of segment sales. TMP Executive Vice-President for Marketing Kei Mizuguchi revealed that 83,000 units of the Wigo have been sold since its debut.

The timing of the launch is not lost on TMP. “The new Wigo (debuts) at a time when the public face limitations in public transportation (amid) increasing safety concerns. The new Wigo addresses mobility needs during these challenging times, providing the best option for budget-conscious first-time car buyers and those looking for extra car for other family members,” the company said in a release.

During his welcome remarks, TMP President Atsuhiro Okamoto said, “The new Wigo remains an iconic car that offers the same familiar feeling of practicality and reliability, but made more advanced, more convenient, safer, and more fun with its sleek and sporty TRD styling.”

TMP First Vice-President for Vehicle Sales Operations Sherwin Chua Lim was asked by BusinessWorld if this new normal will spell more sales of more inexpensive models such as the Wigo. He replied that it’s only been a month since dealership operations have restarted, but acknowledged that TMP has received “reports from dealers that there was been an initial surge in first-time car buyers, citing the limited public transportation options as a reason.”

Mr. Okamoto said that TMP is targeting Wigo sales of up to 1,400 a month.

The new Wigo comes in four variants — headlined by the new TRD S which is a sportier iteration of the deceptively spacious budget hatchback. Changes for the 2020 Wigo include machine cut design alloy wheels and a revised look on its rear combination lamps. The G and E variants also share a new front bumper look.

The TRD S variant gets a sportier gait as it is given a TRD kit, which includes the front spoiler, side skirt, two-tone rear spoiler, rear skirt, and TRD S badge and decals. The new Yellow SE color is only available in this variant. The new Wigo boasts redesigned seats and chrome accents, with an LCD air-conditioner panel (for TRD S and G variants) for easier access and control. These variants also receive a push start/stop button and steering switch.

The Wigo now also features power retracting and adjusting side mirrors, plus a new back camera that comes for TRD S and G variants. The TRD S trim also boasts Apple CarPlay and Android Auto compatibility, voice command feature, and a class-leading digital video recorder.

All variants come with power door lock and a new instrument panel design for easier access to controls. The Wigo also gets across its lineup SRS air bags for the driver and front passenger, back sonar, and anti-lock brake system (ABS).

For more information, visit TMP’s website at www.toyota.com.ph and follow the official social media pages at ToyotaMotorPhilippines (Facebook and Instagram) and @ToyotaMotorPH (Twitter).

Shares expected to continue slump this week

By Denise A. Valdez, Reporter

PHILIPPINE SHARES are expected to keep declining this week as concerns over the coronavirus disease 2019 (COVID-19) pandemic make a resurgence and amid worries over geopolitical events.

The benchmark Philippine Stock Exchange index (PSEi) ended Friday’s session in red territory, falling 33.38 points or 0.52% to 6,315.07.

On a weekly basis, the PSEi was down by 2.5%, ending three straight weeks of recording climbs.

Value turnover for the week grew 9% to an average of P9.34 billion, but foreign investors returned to selling with net outflows averaging P1.02 billion, a turnaround of the previous week’s average net foreign buying of P42.63 million.

Much of last week’s performance was driven by external factors such as worries on the second wave of COVID-19 cases in other countries, the US Federal Reserve’s bond-buying program, tension between Chinese and Indian forces at the Himalayan border and the rebalancing of the Financial Times Stock Exchange.

In the Philippines, one of the biggest drivers was the Asian Development Bank’s forecast that the Philippine economy may contract 3.8%, down from the 2% growth it initially forecasted, PNB Securities, Inc. President Manuel Antonio G. Lisbona said.

Another was the central bank’s announcement that remittances from overseas Filipino workers may drop 5% this year because of mounting job losses abroad.

For the coming week, Mr. Lisbona said most investors may still be on wait-and-see mode for developments on the local and foreign issues.

“Looking at the charts, the market looks poised to continue consolidating at current levels, with 6,130 as the first line of support,” he said.

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan shared the same outlook. “Market will continue to consolidate with a downward bias on concerns that the COVID-19 virus may continue to slow down economic activities as it spreads to big economies,” he said.

In the Philippines, Mr. Pangan said what would drive sentiment is the continued rise in COVID-19 cases, which may prompt a return of strict quarantine measures, as was the case for Cebu City.

The Health Department reported 943 new COVID-19 cases on Saturday, raising the country’s total to 29,400. Of this, 20,600 are active cases, 7,650 are recoveries and 1,150 are deaths.

Mr. Pangan is setting resistance for the PSEi at 6,375 and major support at 6,200. If the 6,200 support is breached, the next line would be 5,815.

For Mr. Lisbona, the 50% Fibonacci retracement level is at 5,989, and 6,000 psychologically. If this is breached, he said it may prompt a fresh wave of selling.

Debt yields rise on fresh US stimulus

YIELDS ON government securities (GS) went up as investors reacted to additional US stimulus packages unveiled last week.

Bond yields — which move opposite to prices ‚ jumped by an average of 13.6 basis points (bps) week on week, according to the PHP Bloomberg Valuation Service Reference Rates as of June 19 published on the Philippine Dealing System’s website.

“Yields reacting to fading euphoria from US Federal Reserve stimulus measures with emerging markets struggling to find footing. Rise in yields capped by BSP (Bangko Sentral ng Pilipinas) bond purchase program,” ING Bank N.V. Manila Branch Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

“[T]here was some boost over prospects of a planned $1-trillion infrastructure stimulus package by the US government,” a bond trader said in an e-mail.

Meanwhile, another trader said the increase in GS yields last week was due to lack of new leads.

“So market preferred to wait on the sidelines and turn their focus on any clues pertaining to the jumbo bond sale that was floated by the BTr (Bureau of the Treasury) early this month,” the second trader said.

The US Federal Reserve announced on Monday it would start buying corporate bonds as part of an earlier scheme to pump additional liquidity to its financial system.

Meanwhile, the Trump administration is preparing a nearly $1 trillion worth stimulus package, with the bulk of the total to be allocated to infrastructure projects such as roads and bridges to boost its economy, Reuters reported on Tuesday.

Based on the preliminary version of the US Department of Transportation’s package, it will also allocate a portion of that money for priority projects such as 5G wireless infrastructure and rural broadband, the report said.

Back home, National Treasurer Rosalia V. de Leon said earlier this month they were monitoring developments and the “risk-return tolerance of investors” as the BTr eyes a possible jumbo bond issue or another sale of retail Treasury bonds.

At the secondary market, GS yields rose across-the-board at the close of trading last Friday. Rates on three-month, six-month and one-year papers went up by 12.2 bps, 10.7 bps, and 18.6 bps, respectively, to 2.155%, 2.233%, and 2.598%.

At the belly, yields on the two-, three-, four-, five-, and seven-year bonds increased by 13.2 bps (to 2.622%), 16.3 bps (2.747%), 17.6 bps (2.852%), 16.9 bps (2.957%), and 10.8 bps (3.163%).

Yields on 10-, 20-, and 25-year debt climbed by 8.1 bps, 12.9 bps, and 12.4 bps, respectively, to 3.371%, 4.292%, and 4.396%.

For this week, all eyes will be on the central bank’s Monetary Board on Thursday, June 25, as it reviews its current policy settings.

BSP Governor Benjamin E. Diokno signaled on June 8 that key rates will likely remain unchanged as the central bank wants to have space in case of a worse coronavirus fallout.

Benchmark rates are currently at record lows as the central bank cut rates by a total of 125 bps so far this year to support the economy amid the pandemic.

The overnight reverse repurchase rate currently stands at 2.75%, while overnight deposit and lending rates are at 2.25% and 3.25%, respectively.

“Yields will take their cue from BSP [this] week with investors awaiting possible easing from Governor Benjamin E. Diokno,” Mr. Mapa said.

The first bond trader said local yields might move with an “upward bias” next week as BSP policy rates are likely to remain steady.

“Improving economic data from the US and eurozone, mainly on manufacturing and durable goods, might also drive investors away from fixed-income instruments [this] week,” the first trader said.

“We may continue to see yields move sideways with an upward bias especially on the five-year space and longer,” the second trader said.

The short-end of the curve remains “well supported” as there are market players looking for yield pickup, the trader added. — Lourdes O. Pilar

US EPA receives 52 new petitions for retroactive biofuel blending waivers

NEW YORK — The US Environmental Protection Agency (EPA) has received 52 new petitions for retroactive biofuel blending waivers that, if granted, would help bring oil refiners into compliance with a court ruling this year, EPA data showed on Thursday.

The new pending applications for blending exemptions are for compliance years 2011 through 2018. The waivers exempt oil refiners from US laws that require they blend billions of gallons of biofuels into their fuel pool.

In January, the Denver-based 10th US Circuit Court of Appeals ruled that waivers granted to small refineries after 2010 had to take the form of an “extension.” The decision called into question the future of the EPA’s exemption program because most of the recipients of waivers in recent years have not continuously received them each year since 2010.

The waivers have been a battleground for the oil and corn lobbies, both major constituencies of President Donald Trump. Biofuel advocates say the waivers hurt demand for corn-based ethanol, while the oil industry refutes that claim and says the obligations are too pricey.

Under the US Renewable Fuel Standard, oil refiners must blend billions of gallons of biofuels into their fuel, or buy credits from those that do. Small refiners that prove the rules would financially harm them can apply for exemptions.

The EPA is in charge of granting exemptions after the Department of Energy reviews applications.

The Energy Department’s Mark Menezes said last month that the EPA had asked the department to review waiver requests from refiners covering past years, but the agency had not reported the petitions on its dashboard until Thursday.

The Trump administration has roughly quadrupled the number of exemptions it grants, compared with previous years.

Biofuel advocates have called on the Trump administration to reject the waiver requests.

“EPA’s dashboard confirms that the refiners hope to rewrite years of history, just to bypass the 10th Circuit Court and push more biofuels out of the marketplace,” said Emily Skor, chief executive officer of biofuel trade group Growth Energy.

Leading US oil industry groups are split on the retroactive requests, more evidence of a growing public fracturing within the oil industry around the administration’s approach to blending laws.

The American Petroleum Institute, one of the largest US oil and gas lobby groups, said it would not support granting past-year waiver requests.

“To consider granting compliance exemptions from the RFS years after the fact is yet further evidence that the RFS program is a broken program that needs to be repealed or significantly reformed,” said Ron Chittim, API’s vice-president of downstream policy.

The American Fuel & Petrochemical Manufacturers, which represents more merchant refiners, said the EPA wrongly denied waivers in the past and, therefore, refiners were justified to seek relief now for those years.

“If continuity was breached because of EPA’s earlier misinterpretation, it would be wrong for the agency not to rectify this for qualifying facilities,” an AFPM spokeswoman said. — Reuters

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