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British Council and Design Center to map design economy in the Philippines

THE BRITISH Council in the Philippines and Design Center of the Philippines have commissioned a study to analyze the economic contribution and value chain of the design industry by mapping the design ecosystem of nine areas: Manila, Makati, Quezon City, Taguig, Baguio, Pampanga, Cebu, Davao and Cagayan de Oro.

Recommendations from this undertaking will contribute towards the formulation of a National Design Policy to support the Philippines’ development agenda following the impact of coronavirus disease 2019 (COVID-19) on designers and creative enterprises in the country.

“The Philippines has a rich design tradition. However, its impact and contribution are not fully understood. With this mapping project, we hope to provide an evidence-based model of the country’s design ecosystem that would be instructive on how we can unleash the power of design to nurture globally competitive MSMEs (micro-small-medium enterprises) and contribute design-led strategies to nation building,” Rhea Oreta Matute, Executive Director of Design Center of the Philippines, was quoted as saying in a release.

The mapping study will be conducted by Nordicity, a London-based creative economy consultancy; Bayan Academy, known for its social enterprise work in the Philippines; and Anna Whicher, who has conducted design ecosystem studies in Wales and Scotland.

In the UK, evidence-based policies have helped spur the growth of the creative industries sector that now contributes £111 billion to the UK economy.

The results of the design economy mapping will be presented at the International Design Conference next year, which will be hosted by the Design Center of the Philippines. UNESCO has declared 2021 the International Year of Creative Economy for Sustainable Development.

Tax appeals court affirms canceled taxes on Manila Medical Services

THE Court of Tax Appeals (CTA) affirmed the cancellation of the alleged tax deficiency of Manila Medical Services, Inc. (Manila Doctors Hospital) for 2009 worth P127.6 million.

In a 12-page ruling dated Oct. 29, the court, sitting en banc, affirmed the decision of its special third division and denied for lack of merit the appeal of the Bureau of Internal Revenue (BIR).

The court’s division in January last year granted the petition of Manila Doctor Hospital to nullify the Warrant of Distraint and/or Levy issued in July 2014 over its alleged tax deficiencies for violation of due process requirements.

It ruled that there was not as there was no sufficient evidence to prove that the company received the preliminary assessment notice (PAN) and final assessment notice (FAN).

“After a careful review of the records of the case, the Court En Banc finds no cogent reason to deviate from the Special Third Division’s assailed 30 January 2019 Decision and its 09 May 2019 Resolution, respectively,” the court said.

The court said that on the PAN that the bureau claimed to have personally served the hospital, there was not receiving copy found in the BIR records.

The court also said that the BIR failed to prove that the hospital received the FAN sent through registered mail, noting the declaration of a witness that no action was taken to ensure that the company received the assessment notice.

Even if there was valid issuance of the notices, the assessment for deficiency taxes will be “struck down as void for failing to comply with due process requirements,” the court said. The court noted that the division found that the FAN was issued before the lapse of the 15-day period for the company to respond to the preliminary assessment.

“Tax assessments issued in violation of the due process rights of a taxpayer are null and void,” the ruling read.

“While the government has an interest in the swift collection of taxes, the BIR and its officers and agents cannot be overreaching in their efforts, but must perform their duties in accordance with law, with their own rules of procedure, always with regard to the basic tenets of due process,” the court said.

The BIR in its petition claimed that a valid PAN and FAN were issued and received by the respondent. It also claimed that pharmacy sales to in-patients are not included in “hospital services”, which are exempt from value-added tax (VAT). It also said that valid waivers extended the prescribed period for three years, and its right to assess the company has not yet prescribed.

Manila Medical Services, on the other hand, said the claims of the bureau were “mere rehash” and were already resolved by the division. It cited the division’s ruling that there was no valid service and receipt of the notices and the assessment should be cancelled due to denial of due process. It also claimed that sales to in-patients are exempt from VAT.

Due to void assessment, the court said it deem “unnecessary to delve” into the validity or invalidity of the waiver executed and the VAT treatment of its sales to in-patients. — Vann Marlo M. Villegas

Segment Okavan-guard

Geely unveils the Okavango electrified seven-seater crossover

By Kap Maceda Aguila

SOJITZ G AUTO PHILIPPINES (SGAP), local distributor of Geely, recently launched its third offering in the country — the Okavango.

Positioned as a seven-seater crossover multi-purpose vehicle (MPV), the Geely Okavango is expected to further solidify the presence of the China-headquartered automaker which debuted here in September 2019.

The MPV takes its name after an inland delta in Botswana, Africa — formed where the Okavango River “reaches a tectonic trough in the central part of the endorheic basin of the Kalahari.” Of note, this is the end of the line for the water; it does not find an inlet into another body of water and simply evaporates or seeps into the soil. The Okavango Delta has been declared as one of the Seven Natural Wonders of Africa.

SGAP President and CEO Mikihisa Takayama said, “Coming from the successful launch of the Coolray and Azkarra, we are confident that the new Geely Okavango will be a game-changer in the industry as it combines the best qualities of a multi-purpose vehicle and an SUV into one exciting seven-seater mid-size crossover. This promises to give you a luxurious, uncompromising, and wonderfully distinct ride.”

Outside of China, where the Okavango is badged as Haoyue, the Philippines is the first country to get the vehicle. Remarked SGAP General Manager for Sales and Marketing Froilan Dytianquin to “Velocity” in an exclusive interview, “Geely would really like to expand in the ASEAN market having both Malaysia (as Proton) and Philippines as their initial successful market.”

He added that since the country has a left-hand drive configuration, our market “had the opportunity to be the first to (sell) it after China. I believe the Middle East/GCC (Gulf Cooperation Council) markets will follow soon given different conditions (there), e.g. extreme heat.”

The Okavango is presented as a “wonderfully distinct” vehicle in of terms of “space, technology, design, power, and safety to elevate the driving experience.” It is also the only 48V EMS (electric motor synergy)-equipped seven-seater vehicle in the country today — promising more efficient performance with the aid of a mild hybrid system which works with its 1.5-liter turbocharged engine for a system output of 190hp and 300Nm. The power plant, jointly developed by Geely and Volvo, is mated to a seven-speed wet-type dual-clutch transmission.

It gets six SRS air bags, a 360-degree panoramic camera system with “a best-in-class guidance system and dynamic auxiliary lines,” speeding warning, electronic stability control, hill start assist, central locking with speed-sensing auto lock, and hill descent control.

The crossover boasts a spacious cabin, with three-row seating configurable in 19 ways. For added convenience, the vehicle gets an impressive 42 storage nooks and compartments. It also receives a triple-zone air-conditioning system, enabling the driver, front passenger, and rear passengers to select their own desired temperature setting. A CN95 cabin filter helps assure air quality within the vehicle.

During an online Q&A session with Geely and SGAP executives, Zhejiang Geely Holding Group’s Ashley Sutcliffe expressed hope that the Haoyue’s success in China would be mirrored by the Okavango in the Philippines. “We’re off to a good start (in China), and hopefully it would translate there.”

As for its “game-changer” positioning, the Okavango is said to possess value propositions unique in its segment/price point — such as the aforementioned heightened safety feature, mild hybrid system, and the “highest power-to-weight ratio in its class,” according to Mr. Dytianquin.

Addressing the timing of the release, Mr. Takayama acknowledged, “It has been a challenging year for all of us particularly in the automotive businesses,” and said hopefully that the Okavango comes “in at the right time” with renewed vehicle demand in coming months, “particularly on core segments such as subcompact cars, MPVs, and SUVs.”

The niche that Okavango is getting into is populated with heavy hitters. “It’s challenging, but our intention is to be able to present to the market that we’re delivering products that you’re missing out on… We’re different and we’re able to deliver products that (give) value for money,” explained Mr. Dytianquin.

SGAP targets to sell some 400 units of the Okavango a month. Concluded the executive, “Geely definitely sees a huge potential in the Philippine market to further grow (demand for the vehicle) given our 110 million-strong population.”

The vehicle comes in two variants with the following pricing: Comfort (P1.208 million) and Urban (P1.328) million. Geely Philippines presently has four dealerships (North EDSA, Quezon Avenue, Cagayan de Oro, and Imus Cavite), and intends to grow that to 28 by the end of 2021.

TNT to dominate market by yearend — Smart

TELCO brand TNT is expecting to dominate the market by the end of 2020 after it gained the most subscribers in the third quarter of the year, Smart Communications, Inc. said.

As of Sept. 30, TNT’s subscribers reached over 40 million, Smart said in a statement at the weekend. TNT had over 37 million subscribers in the same period last year, according to PLDT Inc.’s disclosure to the stock exchange.

“TNT’s growth was driven largely by an increase in data users among its subscribers and an increase in LTE SIM and LTE device users. Market research has shown TNT to be the strongest telco brand in the market today—enjoying significant growth in the prepaid category, and looking to dominate by the end of 2020,” it added.

PLDT’s disclosure showed Smart’s subscribers, both prepaid and postpaid, declined by 5% to over 25 million for the nine months ended September, compared with last year’s nearly 27 million users. Sun subscribers, both prepaid and postpaid, also went down by 9% to more than six million from last year’s total subscribers of over seven million.

These brought PLDT group’s total mobile subscribers as of Sept. 30 to more than 72 million, up to 1%.

Meanwhile, Globe Telecom, Inc. saw its “cumulative subscribers” for the nine-month period decline by 20% to over 78 million from last year’s more than 97 million users.

Broken down, Globe postpaid cumulative subscribers went down by 4% to more than two million, the company’s recent disclosure said. Prepaid subscribers, which include TM, decreased by 20% to over 75 million.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Agriculture startup seeks to empower farmers through digital sale platforms

By Revin Mikhael D. Ochave, Reporter

AGRO-DIGITALPH, a startup, hopes to organize a new “digital ecosystem” of farmers to encourage greater use of technology in the industry with the end goal of raising farmer incomes following the disruptions caused by the coronavirus disease 2019 (COVID-19) pandemic.

In an interview with BusinessWorld, Agro-DigitalPH Founder Henry James M. Sison said the company hopes to empower farmers through greater adoption of digital platforms.

“Farmers can also use gadgets nowadays. It is ironic that the people feeding this country are among the poorest members of society,” Mr. Sison said.

Mr. Sison said the startup’s primary service is its production management module, which forecasts demand and likely prices for crops selected for planting.

“The problem usually for farmers is that they don’t usually record. They just plant their crops,” Mr. Sison said.

“If you plan out what you plant, and guarantee that somebody is going to buy your produce at a certain price point, it is a game changer. Our farmers should not be thinking of where they will sell their produce” he added.

Mr. Sison said the company also organizes smallholder farmers into cooperatives and associations and advises on which crops to plant.

The digital platform also links farmers directly to institutional buyers to cut out middlemen.

“We forecast what crops the farmers should produce and we bring them upfront to these distributors and marketplaces,” Mr. Sison said.

“With our digital platform, farmers can solely focus on production, which also raises their productivity,” he added.

However, Mr. Sison said not all farmers who subscribe to the platform are tech savvy, but added there are workarounds to bring them around to using the platform proficiently.

Mr. Sison said before the company teaches farmers how to use their platform, it teaches the basics of using other digital platforms such as social media.

“You don’t expect a 60 or 70-year-old farmer to use Facebook and our platform. But there are some farmers who really want to learn,” Mr. Sison said.

For technology-challenged farmers, Mr. Sison said one solution is to enlist the aid of their children or nieces and nephews.

“We ask the farmers to bring their child or any member of the family who is capable of using technology and get them involved,” Mr. Sison said.

Established in February 2019, Mr. Sison said the digital platform currently has 84 partners consisting of institutional buyers and cooperatives. By the end of the year, Agro-DigitalPH aims to add 20 more partners to its system.

“Our platform is really striving to change and transform the lives of our farmers and our producers in general,” Mr. Sison said.

Resort taps couturier for uniforms that meld function and style

IN THE midst of the coronavirus disease 2019 (COVID-19) pandemic, Discovery Resorts, a group consisting of Discovery Shores Boracay and Club Paradise Palawan, has teamed up with couturier Avel Bacudio, in the creation of the group’s protective gear for its employees.

“We didn’t want anything off the rack. We wanted something bespoke for Discovery Resorts, something that will perfectly suit our colleagues’ needs,” Erwin Lopez, Hotel Manager of Discovery Shores Boracay, was quoted as saying in a statement. “And since this is something that our colleagues will wear every day, the choice of fabric and materials are important in not only ensuring the safety of our colleagues but also ensuring the proper representation of the Discovery brand,” said Joegil Magtanggol Escobar, Hotel Manage of Club Paradise Palawan in the same statement.

Mr. Bacudio conducted research to make sure that what he created would be effective in protecting the wearer — and still look good. “The Avel x Discovery Resorts Face Mask is made of a combination of cotton spandex and polyester, which appear to effectively filter droplets and aerosols, as claimed by a team of researchers in the US while the Avel x Discovery Resorts Apron is made of anti-static microfiber and polyester. It is important to select clothing material based on its ability to resist degradation and permeation caused by different agents,” Mr. Bacudio said in a statement.

The bespoke personal protective gear are part of the Discovery Resorts Home Safe Program where both Discovery Shores Boracay and Club Paradise Palawan have incorporated more rigid cleanliness and sanitation protocols in all areas of the resort operations so that guests can enjoy a worry-free stay.

To know more about the resorts’ Home Safe Program, visit https://www.discoveryshoresboracay.com/discover/home-safe/ for Discovery Shores Boracay and https://www.clubparadisepalawan.com/discover/home-safe/ for Club Paradise Palawan. For inquiries and reservations, visit www.discoveryshoresboracay.com or  www.clubparadisepalawan.com.

Baguio revisited

 

Nissan PHL, DoT work to restart domestic tourism via land travel

I ADMIT there was a time when I dreaded driving up to Baguio City on a weekend, and it was simply because of the sheer traffic I had to endure on the way up there! I recall to have made it a point to drive up to the beautiful city only on weekdays — during off-peak hours — while secretly wishing I could just somehow teleport to Camp John Hay where I could enjoy crisp morning jogs with the forest bathed in fresh pine.

Obviously, nine months into our several shades of community quarantine, my feelings have changed. I’ve absolutely missed driving up to Baguio — or anywhere else outside of Metro Manila, for that matter — and couldn’t wait for the time when we could all happily journey over to our favorite destinations in Luzon again. And this feeling, I reckon, is mutual. Summer capitals such as Baguio City — once the most visited holiday destination within Luzon — have suffered great economic losses from the abrupt dive in tourism. They couldn’t wait for us to come visit them, either.

So, thankfully, the Department of Tourism (DoT) has implemented safety guidelines on how certain holiday destinations could slowly and carefully open themselves to visitors once more. Nissan Philippines, Inc. (NPI) saw this as a beautiful glimmer of hope and optimism for the Filipinos who are bordering on contracting cabin fever, and immediately jumped on the idea to help the DoT market the “reopening” of certain holiday hubs, as part of NPI’s latest CSR project.

And this is what brought me my latest drive story — a journey to somewhat “test the waters” and experience what it’s like to safely travel in the new normal. My trusty vehicle was the spacious and brawny Nissan Terra, which already had me daydreaming about all the pasalubongs I could fit in and take back home with me, even before leaving Manila!

While it may appear a bit intimidating at first, the protocol to enter Baguio City as a tourist is pretty straightforward. The two most important things: You have to register online and receive a QR code as proof of approval of your visit, and you have to prove that you and your party are COVID-free. You see, the city of Baguio currently applies a tourist cap of about 200 visitors a day. To make sure that you and your companions fall within the daily quota of tourist entries applicable on the day that you plan to arrive, you must each submit an online application via visita.baguio.com.ph.

After submitting your online application — which will require you to enter a valid e-mail address and to upload a photograph of yourself — you will receive an e-mail confirming that your application is currently being processed. Once your request is finally approved, you will receive a second e-mail that will explicitly state the approval and that will also include a personal QR code (which you will have to present for scanning, upon entry into Baguio). In my opinion, it is also best to get COVID-tested before you go on your journey, as it would be such a shame to be turned away at the checkpoint, should you ever test COVID-positive while already entering Baguio.

Nevertheless, it is worth noting that even if you did not have the chance to get yourselves COVID-tested while at your point of origin, you may opt to get COVID antigen-tested (this is also a swab test) in the official triage area of Baguio City (which is a checkpoint that you will have to pass through anyway). Of course, testing on site will come with a fee. And should you opt to get COVID-tested beforehand, it is important to remember that the result will be considered valid if it was produced within the last 72 hours.

It is also important to pre-book your accommodations via any DoT-accredited hotel in Baguio. This will also ensure your safety, as these accredited hotels already have in place the recommended safety protocols for visitors — including temperature checks and the filling out of health declaration forms prior to entry.

What I can say is that as of the time of my visit — which was on a weekend in mid-November — going around Baguio City felt safe as it was not as crowded as one would expect it to be in the “ber” months. I also commend the local government for having nicely implemented a plethora of safety protocols all over the city (which the locals were also diligently abiding by, per my observation).

As a matter of fact, I trotted to the Baguio City Public Market and found that there were clearly marked one-way lanes for foot traffic going up, through, and down the foot bridges leading to the market. And while inside the market, all the vendors appeared to be wearing their face masks (properly) and had their face shields planted on their heads. Sometimes they lifted their shields upward to take a better look at things, but they were mindful of their actions and were excited to see some Manileños finally coming back to shop.

The market also had directional lanes for passersby on each side, ensuring that no one would bump into each other face-to-face. There were also alcohol dispensers and trash bins every few meters, so people could disinfect their hands whenever they deemed necessary.

I drove the 4×4 Terra throughout this journey and it gave me the priceless peace of mind I needed, knowing that I would be safe and always in control of my driving through any kind of weather conditions. The vehicle is also gifted with several active and passive safety features, and the 360-degree-view parking is especially handy when parking is often scarce and tight. Moreover, I departed Metro Manila (BGC area) aboard the Terra, with a full tank, drove through the highway (and used cashless RFID, of course), climbed up the mountain via Marcos Highway (Kenon is closed), drove around Baguio City, and returned to BGC with still almost a quarter tank of fuel! Of course, I am an eco-driver by default, but I did push down on the pedal while having to overtake the occasional overloaded truck on the last bit leading to the entry point of Baguio. Travel time was approximately 4.5 hours per way, from initial departure to the first checkpoint. If there’s a golden window to visit Baguio in the Christmas Season sans the usual hustle and bustle, now is the time. Thank you, Nissan Philippines, for helping stimulate our local tourism back to life via land travel!

Corn industry asks government for more mechanical dryers rather than cash aid

THE Philippine Maize Federation, Inc. (PhilMaize) said the provision of mechanical dryers will have a bigger long-term impact on the corn industry than financial or food aid for farmers.

In a statement, PhilMaize President Roger V. Navarro said mechanical dryers enable longer storage of corn, allowing farmers to wait out unfavorable swings in prices.

Mr. Navarro said mechanical dryers will also help rice farmers meet the requirements of the National Food Authority (NFA) for buying palay or unmilled rice, which must have a moisture content of 14%. The ideal moisture content for corn is 15.5%.

NFA purchases palay from farmers at P19 per kilogram.

Mr. Navarro said farmers who do not have access to mechanical dryers opt to put their palay along the provincial road system for sun drying, contaminating their produce with stones and dirt and lowering yields.

He added that road drying is not possible during the rainy season.

“We can still see farmers drying their produce on the highways.  We must resolve this problem first and foremost. This is a fundamental infrastructure intervention support that the government should do.  Or else it will fail in its mandate and can therefore be charged with dereliction of duty,” Mr. Navarro said.

Mr. Navarro said the group is wary of plans to hand out excess rice tariff collections to farmers, at P5,000 each.

The Senate Committee on Agriculture, Food, and Agrarian Reform in October approved a resolution that would give financial assistance to farmers from excess revenue generated by rice tariffs.

Mr. Navarro said the money from excess rice tariffs should be used to empower farmers.

“More funds should be invested for long-range and sustainable projects that farmers badly need, which are post-harvest and storage facilities,” Mr. Navarro said. — Revin Mikhael D. Ochave

Investors snatch up Security Bank after Q3 earnings data

INVESTORS took positions on Security Bank Corp. last week after it released its third-quarter (Q3) earnings report.

A total of 9.113 million Security Bank shares worth P975.2 million were traded between Nov. 16 and 20, data from the Philippine Stock Exchange (PSE) showed.

The stock closed at P111.5 apiece on Friday, up 5.7% from its Nov. 13 closing price of P105.5 per share. Year to date, its price per share has lost 38.1%.

“We believe Security Bank was among the most actively traded stock this week following the release of its third-quarter 2020 financial results,” said Wendy B. Estacio, senior equity research analyst at Philippine National Bank’s (PNB) Research Division, in an e-mail.

Ms. Estacio added that SECB — Security Bank’s stock ticker symbol — leads in most of the key metrics compared with other listed banks in the PSE index (PSEi).

“The Bank remains the most capitalized in the industry with end-September CET1 (common equity tier 1) ratio of 19.1% and CAR (capital adequacy ratio) of 19.9%, meaningfully higher than the average of index banks at 16.7% and 17.6%, respectively. In addition, SECB had the highest net interest margin in [the nine months to 2020] at 4.90% (4.22% average) and the lowest cost-to-income ratio at 38.4% (48.2% average),” Ms. Estacio said.

“The bank also registered the highest pre-provision operating profit growth at 120% year-on-year (49% average) and the lowest decline in the bottom-line at 13% year-on-year (-33% average), despite having the biggest increase in provisions at over 12 times year-on-year (seven-times average). From November 16 to 19, SECB rose by 1.9% while the PSE index was up by 0.4%.”

In a phone interview, RCBC Securities, Inc. Equity Analyst Daphne T. Yang attributed Security Bank’s stock movement to the overall performance of the PSEi last week, adding that the first to benefit usually are index names such as Security Bank.

On a Nov. 13 disclosure to the PSE, Security Bank reported a net profit of P1 billion in the third quarter, down from P2.7 billion a year earlier after it raised loan loss reserves “proactively” to P10.1 billion to account for the likely impairment of loan assets due to the coronavirus pandemic. In the nine months to September, net income fell 13% to P6.7 billion.

The bank also set aside P21.1 billion as provisions for credit losses in the first nine months of 2020, around 12 times higher compared with P1.8 billion last year.

During the nine months, operation income rose 66% year-on-year to P40.2 billion as net interest income grew by 24% to P23.4 billion. Net trading gains amounted to P9.2 billion from P1.4 billion a year earlier.

PNB’s Ms. Estacio forecast Security Bank’s full-year 2020 net income to decline by 10% year-on-year to P9.13 billion. 

“Management also expects provisions to remain elevated due to the volatile macro environment, which we think may put stress on its capital position. However, we view this risk as priced in, as the stock’s 2021 P/E (price-to-earnings ratio) of 8.0 times is a 45% discount to its five-year average of 14.5 times,” Ms. Estacio said.

“We have a weighted dividend discount model and target P/B (price-to-book)–based target price of P137.30 per share… At our target price, Security Bank will only trade at a 2021 P/E of 10.3 times, which is still a hefty 29% discount,” she said.

For RCBC Securities’ Ms. Yang, the major concern for banks including Security Bank is the growth in nonperforming loans (NPLs), noting that Security Bank is one of the banks that “did not give any guidance on big NPLs.”

Security Bank’s gross NPL rose to 4.03% during the third quarter from 1.58% in the previous quarter.

Ms. Yang expects recovery in net income for banks to be “around 2022” as most of the lenders expect high NPLs for this year.

“[W]e can expect that loan growth will be tempered, or that they will increase the provision or maintain an elevated level of provisioning, which in time, will hurt income. So until next year, we cannot really say that the banks will recover…,” she said.

Ms. Yang placed Security Bank stock’s support and resistance levels at P103.04 and P111.70, respectively. — Michelle Anne P. Soliman

Yields on government debt inch down on surprise cut

YIELDS ON government securities (GS) edged lower last week after the central bank’s surprise move to bring down borrowing costs to fresh record lows amid a sluggish economic backdrop.

Debt yields, which move opposite to prices, went down by an average of 3.9 basis points (bps) week on week, based on the PHP Bloomberg Valuation Service Reference Rates as of Nov. 20 published on the Philippine Dealing System’s website.

“Local yields closed almost unchanged for the week after initially rising amid market expectations that the Bangko Sentral ng Pilipinas (BSP) will keep its policy rates unchanged during its policy meeting [last] week,” a bond trader said in an e-mail interview.

“However, yields substantially declined on Friday following the unexpected 25-bp BSP policy rate cut which was announced Thursday afternoon,” the bond trader said.

First Metro Asset Management, Inc. (FAMI) shared a similar view, saying bond yields were “generally sideways” last week with some pullback in tenors in the belly to the long end before the rate cut.

The central bank’s Monetary Board unexpectedly slashed benchmark rates by 25 bps on Thursday — its fifth cut this year — to new record lows to prop up an economy battered by recent typhoons and muted sentiment amid the coronavirus pandemic. This brought the rates on the BSP’s overnight reverse repurchase, lending, and deposit facilities to 2%, 2.5%, and 1.5%.

The central bank has trimmed key rates by a total of 200 bps this year.

The central bank also adjusted upwards its inflation forecast for this year to 2.4% from the 2.3% it gave last month.

Meanwhile, the BSP sees inflation at 2.7% (from 2.8%) and 2.9% (from 3%), respectively, in 2021 and 2022 as domestic activity remains sluggish and amid a strong peso and lower global crude oil prices.

But market reaction was relatively muted even as the policy cut was largely viewed as a surprise, ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said.

“Buying interest surged as expected, but it was focused on the belly (five- to seven-year bonds) of the curve with a rally of 10-12 bps. Interest on longer-tenor securities remained thin with bids adjusting just marginally lower,” he said.

At the secondary market last Friday, yields were lower than week-ago levels except for 20- and 25-year papers, which rose by 6.4 bps and 7.6 bps, respectively, to 4.065% and 4.08%.

Yields on the 91-, 182-, and 364-day Treasury bills (T-bills) declined by 2 bps, 4.3 bps, and 1 bp to 1.084%, 1.429%, and 1.758%, respectively.

At the belly of the curve, rates of the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) also fell by 9.6 bps (to 1.953%), 9.2 bps (2.223%), 8.5 bps (2.463%), 7.5 bps (2.663%), and 6.8 bps (2.875%), respectively.

The 10-year T-bond likewise slid by 7.7 bps to fetch a rate of 2.934%.

The bond trader said GS yields may continue to decline this week following the BSP’s rate cut and market expectations of dovish guidance from the minutes of the US Federal Reserve’s latest policy meeting.

“We expect the downward bias for yields to continue going into [this] week,” FAMI said. “Current yield levels favor the government’s borrowing cost which is crucial to its deficit funding and budget disbursements. Near-term trading might also factor in the possibility of a reserve requirement ratio cut.”

For his part, Mr. Liboro said despite the BSP rate cut, he expects yields to increase in the short term.

“We expect some more profit taking on the back of policy moves and yields to continue their gradual adjustment higher towards yearend,” he said. — Jobo E. Hernandez

Style (11/23/20)

BGC lights, sales for Christmas

BONIFACIO Global City (BGC) during Christmas is known for its sparkling lights, gastronomic experiences, shopping choices, and Christmas events. The ongoing pandemic is not slowing things down. With “Lights will guide you home” as this year’s theme for Christmas festivities in BGC, it celebrates what matters most — the gift of health, friendship, family, and community. This year BGC goes back to basics by stripping down the frills and focusing on a warm and bright display of lights embodying the holiday spirit,with the whole stretch of Bonifacio High Street filled with colorful light decors. Bonifacio High Street hosts its biggest sale of the year from Nov. 26 to 30, with huge discounts (up to 70%) and deals from over 70 participating brands like Sole Academy, Uniqlo, Nike Park, Adidas, Aldo Shoes, Old Navy, Fully Booked and more. There will also be treats from Romulo Café, Malongo Café, Chili’s, The Alley, You+ Clinic, Faces and Curves, Tempur, and many more up for grabs this holiday season. Visitors will also have a chance to win a shopping spree: 10 winners of P10,000 worth of gift certificates from Bonifacio High Street’s flagship sports brands Nike, Adidas, and Under Armour are up for grabs. For every P2,000 single or accumulated receipts, dated Nov. 15 to Dec. 30, a shopper earns one raffle coupon entry. Winners will be announced on Jan. 4, 2021, at 3 p.m., through Bonifacio High Street’s official Facebook page. People who prefer to stay at home can still join the fun through Bonifacio High Street’s Live Holiday Shopping online shopping party, which will be aired on the Facebook pages of BHS. To make the holiday season special for the kids, children are encouraged to send their wish list online in the form of letters, videos, and comments for a chance to be one of the three lucky winners who will get their wish granted by Santa. Visitors also get a chance to receive a Christmas feast from BHS food merchants by posting photos of them in BHS talking about the reasons why they choose to celebrate their milestones and why they keep on coming back to Bonifacio High Street. Finally, in the first week of December, BHS goers will get a chance to spot Santa live as he rides an e-scooter in his very own PMD lane, falls in line for coffee, eats al fresco, or gives away gifts at the BHS amphitheater. Visitors can post all about Santa online and get a chance to be one of the five winners of P1,000 worth of gift certificates from MUJI. Health protocols will be strictly implemented to ensure a safe and seamless shopping and dining experience for all. For more details, visit  Bonifacio High Street’s official Facebook page as well at https://www.facebook.com/BoniHighStreet/ for the latest updates and announcements.

Tod’s bags get a makeover

TOD’S has launched its new Signature Bags, a series of versatile top-handle handbags featuring the iconic pattern inspired by the imprint of the house’s famed Gommino loafer. The new designs represent a revision of the original Signature pattern by the house’s new creative director Walter Chiapponi, a part of his mission to reaffirm Tod’s excellence in leather work and overall dedication to craftsmanship in a contemporary context. This reinterpretation of an icon sees a loosening of the Signature pattern, giving space for the natural quality of the leather to breathe and shine, while retaining and celebrating the circular pebble motif that echoes the base of the Gommino. Anchored by the signature Timeless T buckle, discreetly settled at the flap opening, the Matelassé texture is retained. The new design also better salutes the caliber of the raw materials. In the Philippines, Tod’s is exclusively distributed by Stores Specialists, Inc., with boutiques at Greenbelt 4, Rustan’s Shangri-La, and Shangri-La Plaza.

Montblanc honors Elvis Presley with pen series

MONTBLANC tells the story of cultural icons who made their mark on history through its Great Characters Edition, and is dedicating its latest Great Characters Edition to Elvis Presely. The collection is made up of three writing instruments, each one paying tribute to an important stage of Elvis’ career: a Special Edition inspired by his special 1968 comeback concert, a Limited Edition 1935 evoking his time in Las Vegas and a Limited Edition 98 based on the Aloha from Hawaii concert broadcast via satellite to 1.5 billion people across 40 countries. Many design details of the Special Edition are inspired by Elvis’ love of cars. The silhouette of the writing instrument is inspired by the shape of a spark plug, and his quote “Ambition is a dream with a V8 engine” is embossed on the cone. The V shape of the clip and its eight-hole design reminiscent of the engine block are a further tribute to Elvis Presley’s love of cars. The pattern on the cap and barrel of the Special Edition are inspired by a ring custom-made for the famous Aloha in Hawaii concert. The top of the clip is decorated with the initials “EP” in reference to the design of his sunglasses. The Montblanc emblem on the cap top is combined with the ELVIS logo, the first time the iconic emblem has been adapted. The barrel is adorned with “Elvis has left the building.” The Special Edition comes in black resin, the color of the leather suit he wore for the 1968 NBC Elvis’ TV Special, enhanced with platinum-coated fittings. The Limited Edition 1935 features a lacquer eagle inlay worked into the cap inspired by the cape Elvis wore during the Aloha from Hawaii performance. “Jailhouse Rock,” is engraved on the handcrafted, rhodium-coated Au 750 solid gold nib. The cap of the Au 750 solid gold Limited Edition 98 fountain pen is adorned with the eagle from his costume. It features a floating Montblanc emblem with gold dust beneath; the little pillar in the center of the dome is a reference to Aloha in Hawaii’s being broadcast via satellite, and the dust represents Elvis’s performance. The Au 750 solid gold nib is embellished with an engraving of the song “Suspicious Minds.” Montblanc is also introducing a Montblanc Great Characters Elvis Presley limited edition ink in Old Glory Blue, as well as a white calfskin leather notebook with digital print and stud design of the eagle, a pair of steel and lacquer round “Elvis” cufflinks, and a steel and leather bracelet. The Montblanc Great Characters Elvis Presley Edition is available at Montblanc boutiques worldwide. Montblanc is at Rustans Makati, Rustans Shangri-La, Rustan’s Cebu,Greenbelt 5, City of Dreams and Resorts World.

Sodexo GCs go virtual

SODEXO Benefits and Rewards Services offers a multitude of exclusive deals for its corporate clients and consumers for the holidays. For companies to reward their employees in a safe and efficient way during these times, Sodexo is also launching its new digital solution, the Sodexo+ app to complement their paper solution, Premium Pass. “We recognize the challenges faced by companies and business owners since the onset of the pandemic. Through our products, we want to help them enhance employee engagement through meaningful rewards, while getting the most value. Now, Filipinos can share and receive GCs in an instant and contactless way,” says Sharon Kayanan, Sodexo Marketing Director. With Sodexo+, the gift certificates can now be distributed from an easy to use web portal into a free app. Through the app, users can then enjoy their digital GCs at merchants nationwide and purchase e-vouchers from e-commerce giants Shopee and Zalora. Users can also share their GCs with other users through the “Share GC” feature on the app. Since September, Sodexo has been treating its corporate clients with early holiday deals to reward their employees as well as their customers to help keep them engaged for the rest of the year and beyond. There is Sodexo’s One-derful Christmas Gifts, in which a minimum of P100,000 Co-Branded GCs gets 1% off or a rebate. Promo duration runs until Dec. 31. Then there is Buy More, Get More: get free P500 worth of Sodexo+ credits for every P1M purchase of Sodexo GCs. Promo duration runs until Dec. 31. There is also a Digital Christmas Ham or Basket: Instantly distribute gifts to employees, partners, and customers with Sodexo Digital Christmas ham or basket GC. Promo runs to Dec. 31. Until Dec. 31, consumers can also enjoy exclusive freebies and discounts when they use their Sodexo GCs at selected Miniso, Red Ribbon, Krispy Kreme, Yellow Cab, and Figaro Coffee branches nationwide. The Sodexo+ app is available for download on both IOS and Android smartphones. For more information on Sodexo+ and Sodexo’s Christmas deals and offers, visit and sign-up at bit.ly/SodexoChristmasDeals. For personal gifting needs, you can also buy Sodexo gift certificates at www.gcregalo.com and have these delivered to your doorstep.

Philippines slips in world prosperity list (2020)

Philippines slips in world prosperity list (2020)

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