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Mazda showcases ‘premium experience’ with new CX-30, CX-8

By Manny N. De los Reyes

MAZDA PHILIPPINES’ two all-new crossovers made their public debut over the weekend at the Bonifacio High Street Big Bear Oval. The 2020 Mazda CX-30 compact crossover and the all-new 2020 Mazda CX-8 three-row crossover headed the Hiroshima-based car maker’s expanded CX family lineup of upscale, stylish and fun-to-drive crossovers in a display and test drive activity designed to let customers discover and experience the next-generation Mazda Premium.

Bigger than the CX-5 but smaller than the flagship 7-seater CX-9 (but with the same wheelbase as the latter), the CX-8 is Mazda’s newest three-row sport utility vehicle (SUV). Its key feature is its availability as a luxurious 6-seater in a 2-2-2 seating configuration. For those with more traditional passenger-carrying needs, a more traditional 2-3-2 setup is also available.

The CX-8, which comes in front- or all-wheel drive models, is powered by a 190hp/252Nm normally aspirated 2.5-liter Skyactiv-G engine mated to a 6-speed automatic. It comes with adaptive LED headlamps, 19-inch wheels with 225/55R19 tires, power tailgate, and rain-sensing wipers.

Mazda’s new midsize SUV offers standard Nappa leather seats in a very upmarket deep red color, power adjustment for the front occupants (10-way with memory for the driver, 6-way for the passenger), tri-zone automatic climate control, heads-up display, power sunroof, and an 8-inch Mazda Connect infotainment system with a 10 Bose speakers.

The CX-8 boasts six airbags, ABS with EBD, front and rear parking sensors, a 360-degree camera, blind spot monitoring with rear-cross traffic alert, and lane departure warning with lane keep assist. The AWD variant comes with i-Activ Sense which bundles adaptive radar-based cruise control, smart brake support, and driver-attention alert.

The 2020 Mazda CX-8 starts at P2,290,000 for the 4×2 Signature and P2,450,000 for the 4×4 Exclusive.

Mazda seems to be plugging in all the gaps in its crossover-SUV line. While the CX-8 slots in between the CX-5 and CX-9, the curiously named CX-30 (why not CX-4?) squeezes in between the subcompact CX-3 and compact CX-5. The CX-30 is designed for those who adore the tiny but lovable CX-3, but want a little more space (it’s four inches longer and a little over an inch wider) and higher ground clearance (by 15mm). The CX-30’s 2,655mm wheelbase is closer to the CX-5’s generous 2,700mm, though, effectively addressing one of the CX-3’s weaker points — limited rear legroom.

Like the CX-3, the base variant of the CX-30 rides on 16-inch wheels (215/65R16 tires) while the mid- and top-of-the-line variants roll on 18-inch wheels with 215/55R18 tires. LED lighting, rain-sensing wipers, and power folding mirrors are standard, but only the mid- and high-trim models benefit from adaptive front lighting, with the range-topper getting a power tailgate.

And while the CX-3 shares its platform with the Mazda2, the CX-30 shares its chassis with the new Mazda3. All three Mazdas (CX-3, Mazda3 and CX-30) come with the same engine: a 155hp/200Nm 2.0-liter Skyactiv-G mated to a 6-speed automatic. And like the CX-3, the flagship model gets all-wheel drive.

All CX-30 variants have two-tone black-and-dark brown interior, with leather seats on the two higher models and power-adjustable driver’s seat for the flagship. All models also sport a 7-inch LCD instrument panel in tandem with Mazda’s Connect infotainment system with an 8.8-inch display and 8-speaker Mazda Harmonic Acoustics audio system.

The mid-range variant gets cruise control, dual-zone climate control with rear vents and an auto-dimming rearview mirror while the range-topper gets adaptive cruise control, heads-up display, and no less than 12 Bose speakers.

All CX-30 variants get seven airbags, ABS with EBD, stability control, and rear parking camera, with the top-end model adding front and rear parking sensors, a 360-degree camera and Mazda’s i-Activsense, which combines smart brake support, front-cross traffic alert, and driver-attention alert along with blind-spot monitoring with rear cross-traffic alert.

The 2020 Mazda CX-30 comes in four variants: the entry-level 2WD Pro at P1,490,000, the mid-range 2WD Sport at P1,790,000, the flagship AWD Sport at P1,990,000 and the AWD Signature (with white leather seats, which add P15,000 to the AWD Sport’s price).

“Mazda simply has the best-looking vehicle lineup in the country today. And what better way for car buyers to see, feel and drive them in one go than at this weekend’s Mazda Premium Experience,” shared Mikko David, Senior Manager for Marketing and PR of Mazda Philippines, before the opening of the event.

“Mazda customers can experience and feel for themselves the premium difference in design, interior quality and driving feel of the Mazda car and crossover range,” he added.

Aside from test drives of the new Mazda around BGC, the three-day event gave an in-depth tour of the new Mazda design philosophy as well as showcased the craftsmanship and safety technologies that can be found in the brand’s latest models.

Aside from the new CX-30 and CX-8, Mazda also made available for test drive the all-new Mazda3, the Mazda6 Turbo executive sedan, the award-winning CX-5 premium 5-seat crossover, and the CX-9 premium executive 7-seat crossover.

Ayala energy unit to ramp up overseas expansion

AYALA-LED AC Energy, Inc. is setting aside the bulk of the $1.5 billion shored up from recent capital-raising activities for projects in the Philippines, Australia and Vietnam, while looking at India and Myanmar as new markets, its top official said.

Eric T. Francia, AC Energy president and chief executive officer, said 2020 would be a “massive investment year” for the company as it expands into foreign countries, in part because of the near-term supply adequacy in the country.

“This year we raised a lot of funds,” he told reporters last week. “We’ve effectively raised around $1.5 billion. Half a billion of that is already deployed, committed.”

Mr. Francia said AC Energy, which includes its listed local unit AC Energy Philippines, Inc., is looking at the five countries to invest the remaining $1 billion, with the Philippines, Vietnam, and Australia receiving a quarter of that amount or $250 million each. India, Myanmar and other markets will get the rest.

Included in the fund raising is the rough estimate of the proceeds from the upcoming stock rights offering of AC Energy Philippines, adding to the capital raised from two bond offerings and the selldown of AC Energy’s stake in AA Thermal, Inc.

“We’re looking to build over 1,500 megawatts (MW) of attributable capacity to AC Energy… for financial close by 2020,” Mr. Francia said. “That’s where we’ll deploy the billion dollars.”

He said the power plant projects would be “predominantly renewables.” The company’s overseas expansion is “partner-driven” or similar to what it had done in Vietnam and Australia.

AC Energy has two types of foreign partners — a “development” partner with experience in building power plants, and a “local” partner with knowledge of the regulatory landscape.

“They’re experts and they do the on-the-ground work, and we help on the management and governance, the financing … and the big decisions,” he said.

The Philippines, Australia and Vietnam will get the “critical mass” of next year’s investments each with an installed energy capacity of at least 400 MW. India, Myanmar and other markets are where AC Energy expects its partnership platforms to “gain traction,” Mr. Francia said.

He said completing power plant projects — many of which are a hybrid of solar, diesel and battery storage — would take about a year, except in Australia where labor restrictions might require a longer construction phase.

In the Philippines, AC Energy plans to build solar and diesel-fired power plants, and potentially expand its existing wind farms. In Australia, the company is looking at solar power and possibly, pumped hydroelectric plant, Mr. Francia said.

AC Energy has existing solar farms in Vietnam, but the capital expenditure next year is largely for wind farms as the company targets to avail of the guaranteed feed-in tariff that has a November 2020 deadline.

Mr. Francia said India provides the least cost in building energy projects, while Australia is the most expensive. No utility-scale project is planned in Myanmar.

“That’s why it’s [2020) a big year because we’ve never done 1,500 MW of new investments in one year,” he said. — Victor V. Saulon

Geely holds Coolray drive to Bataan

SOJITZ G Auto Philippines (SGAP), the local distributor of Geely, recently conducted an overnight media drive to the north in its striking new Coolray subcompact SUV. Geely is the Chinese automaker which owns Volvo, Lotus, and the London Electric Vehicle Co., which now makes the iconic black London taxicabs.

Officials from Geely Auto International Corporation and SGAP joined the media participants over the two-day Coolray drive from Manila to Anvaya Resort in Bataan and back the next day.

At least 15 attendees from various media outfits joined an 8-vehicle convoy and embarked on the over 360-kilometer round-trip drive.

Driving to the destination, Geely challenged the participants to beat the Coolray Sport’s 15.5 km/L average fuel consumption claim within the mix of city and highway driving. The winning car achieved a 16.4 km/L fuel mileage.

With this, SGAP vows to continuously offer value for money in its vehicles, making sure that customers would find more high-tech features in Geely vehicles, which are normally found on luxury European brands, but at an affordable price.

The Geely Coolray Sport retails for P1,198,000, which includes premium features like auto parking, state-of-the-art gasoline direct injection turbo engine and 7-speed dual-clutch automatic transmission, and a 360-degree camera view — high-end features normally found in luxury cars.

The Coolray Sport variant was formally launched to the Philippine market last September. The flagship model was followed by two more affordable Coolray variants — Comfort and Premium — that start at an affordable price of P970,000.

For 2020, Geely will be growing its nationwide dealership network as well as adding more models to complement the Coolray. The Geely showroom on 1016 EDSA in Quezon City is currently its sole showroom.

LRWC ends talks with Galaxy, drops plans for Boracay casino

By Denise A. Valdez
Reporter

LEISURE & Resorts World Corp. (LRWC) is dropping its plan to build a casino on its 23-hectare property in Boracay, as the company is no longer in talks with Galaxy Entertainment Group for the project.

In a chance interview last week, LRWC Acting Chairman Eusebio H. Tanco said the company is no longer looking at building a casino when asked by reporters for updates on the planned $550-million integrated resort.

“Wala na… We are not looking at casino. But I’m keeping that piece of land,” he said after the Philippine Stock Exchange Bell Awards 2020 press conference in Bonifacio Global City.

“I’ll just hold on to that piece of land, but I’m not going to do a casino there. I’ll just land-bank it,” Mr. Tanco added.

LRWC bought the parcels of land in Boracay in 2017 for the planned million-dollar resort development. It was supposed to partner with Macau-based casino giant Galaxy Entertainment Group for the casino component of the resort.

“Wala na muna [There are no more talks for now]. We’ll just land-bank it, then we wait for opportunities,” he said, referring to talks with Galaxy.

Mr. Tanco said LRWC will instead focus on retail and its core businesses in 2020.

“You have Shangri-La Mactan, they’re doing very well without a casino. I have a joint venture with Ayala in Mactan, wala rin casino [there’s also no casino]. We’re building a huge resort complex without a casino. I’m not a casino guy kasi eh. Leave the casino to the casino players,” he said, explaining LRWC’s decision to withdraw the Boracay casino plan.

LRWC was initially planning to open the Boracay resort in 2021.

The project, however, encountered obstacles as the planned casino drew negative reactions from various stakeholders including President Rodrigo R. Duterte.

With the suspension of the casino plan, Environment Undersecretary Benny D. Antiporda said the department is happy as Boracay is better off without the gambling facility.

“If indeed it is true that they will no longer push through with their casino project, we consider it a positive development, for in this administration we are really eager to convert Boracay Island into a family-oriented tourism area, not a party place to vices like gambling and intoxicating drinking,” he said in a text message on Sunday.

Meanwhile, Mr. Tanco said LRWC’s is expecting to complete next month the redemption of all its preferred shares worth P1.65 billion.

“We have internal resources… We should be able to redeem everything by January,” he said.

The company told the stock exchange in October it was buying all its outstanding preferred shares where the redeemed shares “will be treated as Treasury Shares until and unless the shares are retired or reissued.”

Once the transaction is completed, the company’s foreign ownership would go down to 18.37% from 18.43% as of end-September.

Earnings of LRWC was slashed to P23.56 million in the first nine months of 2019 from P266.04 million in the year prior due to a slowdown in its casino and online businesses.

Bentley racks up top recognitions in UK

BENTLEY’s new Continental GT V8 recently clinched twin honors at the 2019 News UK Motor Awards, with the grand tourer crowned as People’s Car of The Year by Jeremy Clarkson. The Continental GT V8 was also named “Best British Built Car” following a poll among the readers of prestigious UK publications The Sun, The Times and The Sunday Times, as well as by listeners of talkSPORT.

Following these recognitions, Bentley at the Walpole British Luxury Awards led the roster of this year’s winners, which includes premium brands Church’s, Burberry, FLOWERBX, Smythson and Dunhill. Among those which were also cited were fashion designer Dame Zandra Rhodes and Ewan Venters, CEO of upmarket department store Fortnum & Mason.

Collecting the People’s Car of the Year award was Bentley Regional Director for the UK Sarah Simpson, who said, “We are delighted that the Continental GT V8 has been recognized both as the best British-built car and as the People’s Car of the Year. With the launch of the GT V8 in the UK, the success of the Continental GT here will go from strength to strength.”

For his part, Clarkson called the Continental GT V8 a “wonderful, wonderful car… particularly when you sit inside.”

“I want one,” he said.

The Continental GT in 2018 won 19 awards from publications in the UK, Europe, Russia and China. Its overall success at the 2019 News UK awards builds on last year’s inaugural event, where the GT claimed the “Luxury Car of the Year” title. The award-winning trend has continued this year, with the GT being crowned the Middle East Car of the Year and the GT Convertible winning a WardsAuto Best Interior award, as well as honors in the German Design Council’s Automotive Brand Contest.

Meanwhile, the Walpole British Luxury Awards’ program, held at The Dorchester in London’s affluent Mayfair district, was attended by more than 350 luxury industry creatives, executives and influencers, all of whom gathered to applaud both Britain’s established luxury companies and emerging talent alike for their outstanding work in the luxury sector.

Dedicated to celebrating the best high-end products and services coming from a range of British businesses — such as fashion, fragrance, fine jewelry, hotels, automobiles and accessories — the annual Walpole British Luxury Awards also fosters the premium goods industry’s unique qualities through mentorship programs, events, research and public affairs with the British government and those of the rest of Europe.

Bentley was chosen in the new Future Legacy category that has been added to this year’s awards’ list. The iconic luxury carmaker was recognized because it chose to use the power of its heritage, on which it built a visionary and relevant story for the future. Honored in particular was the Bentley Centenary program which presented the future of luxury mobility through the EXP GT 100 concept car.

The EXP 100 GT is a zero-emission, all-electric concept car that is also fully autonomous. Created to celebrate Bentley’s centenary year, it sets a new benchmark for sustainable luxury by adopting 5,000-year-old Copper Infused Riverwood, 100% organic leather-like textile that is a byproduct of winemaking, and British-farmed wool carpets and embroidered cotton interior surfaces, among other items. Even the car’s paint is made from recycled rice husks.

To bring the EXP 100 GT to life, Bentley collaborated with companies which also help protect the tradition of British craftsmanship, as well as put sustainable innovation at the top of their priorities.

Walpole CEO and Harrods Managing Director Helen Brocklebank called the EXP 100 GT “a technological tour de force of design and driver excitement.”

The winners of the prestigious Walpole British Luxury Awards were selected from a shortlist of brands across 10 categories by a panel of industry experts, headed by Walpole Chairman Michael Ward and Brocklebank.

Cavitex operator aims to post P3-billion revenues in 2020

THE operator of the Manila-Cavite Expressway (Cavitex) is targeting to generate P3 billion in revenues in 2020.

“We are targeting P3 billion next year. [Because of] CALAX (Cavite-Laguna Expressway project), then the full year of operations of C-5 (Circumferential Road 5 South Link), and then we are hoping to get our toll fee increase, yung 2011-2014 namin na [petition] naka-pending pa sa TRB (Toll Regulatory Board), by next year,” Roberto V. Bontia, president of Cavitex Infrastructure Corp. (CIC), told reporters on Dec. 2.

Mr. Bontia said the company is confident that it will hit its P2.2-billion revenue target for this year.

“Siguro we will be ending the year with close to 175,000 vehicles a day. Last year 149,000 or 150,000 [vehicles a day],” he said.

Cavitex has also benefitted from the traffic problem along the South Luzon Expressway (SLEx) due to the ongoing construction of the Skyway Extension.

“In fact, in November, we were averaging 190,000 vehicles a day, and that’s coming from a year-to-date of 175,000,” Mr. Bontia noted.

“Traditionally, December is a peak season but we were actually a beneficiary of the SLEx problem. We saw an uptick in Kawit (Cavite) and R-1 (Expressway) nuong nag-umpisa ‘yung problema doon. In fact, we’ve seen 4% to 5% increase in traffic because of the SLEx problem,” he added.

CIC, which is part of Metro Pacific Investments Corp. (MPIC), is the private concessionaire for the Cavitex project.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — A. L. Balinbin

Three-year T-bonds likely to fetch lower rates

TREASURY BONDS (T-bonds) on offer on Tuesday will likely fetch lower rates as the market awaits the central bank’s move on interest rates after the release of latest inflation data.

The Bureau of the Treasury (BTr) is offering on Tuesday P20 billion worth of reissued three-year T-bonds with a remaining life of two years and six months.

For Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., the yields on the tenor on offer tomorrow may move within the 3.6%-3.8% range.

On Oct. 1, the BTr borrowed P20 billion as planned from three-year bonds out of bids totaling P50.8 billion. The three-year papers fetched an average rate of 3.996%, 3.5 basis points (bps) higher than the 3.961% quoted when the tenor was offered on Aug. 27.

“The markets will anticipate the next BSP (Bangko Sentral ng Pilipinas) monetary policy-setting meeting on Dec. 12, 2019 for a possible cut in local policy rates that cannot be completely ruled out amid relatively low/benign inflation that is still well below the 2%-4% target,” Mr. Ricafort said via text message.

The three-year bonds were quoted at 3.922% at the secondary market on Friday, based on the PHP Bloomberg Valuation Service Reference Rates.

Inflation picked up to 1.3% in November due to higher prices in some commodity groups. Last month’s print was higher than the 0.8% recorded in the preceding month as well as the 1.2% median estimate in BusinessWorld’s poll of 16 economists.

Year-to-date, inflation averaged at 2.5% which is still within the 2-4% target range set by the BSP for 2019.

BSP Governor Benjamin E. Diokno earlier said the Monetary Board will watch out for November inflation data during its eighth and last policy-setting meeting on Thursday, Dec. 12.

ING Bank NV Manila Branch Senior Economist Nicholas Antonio T. Mapa expects the auction to be met with strong demand from the liquidity released after the banks’ reserve requirement ratio (RRR) cut took effect this month.

This may even prompt the Treasury to open its tap facility to accommodate oversubscription, he said.

“BSP recently released a fresh P100 billion in liquidity from a RRR reduction and this could help drive the government securities market rally for the time being as funds stay away from bank loans for the time being,” Mr. Mapa said.

“However, an offsetting factor would be some seasonal increase in short-dated local interest rates, or some premium for crossing-the-year peso funds/deposits/borrowings amid some window-dressing activities in view of the accounting yearend,” RCBC’s Mr. Ricafort added.

The RRR for universal and commercial lenders now stands at 14% and four percent for thrift banks following 400 bps worth of cuts for the year thus far, while the reserve ratio of nonbank financial institutions with quasi-banking functions is at 14%. Meanwhile, the RRR of rural banks is at three percent.

The Treasury has set a P220 billion borrowing program this quarter for the local market, broken down into P100 billion in Treasury bills and P120 billion via Treasury bonds. — B.M. Laforga

Suzuki PH inaugurates 77th dealership in Ilocos Norte

ADVANCING its commitment to deliver top-quality products and services to more Filipinos, Suzuki Philippines (SPH), the country’s pioneer compact car distributor, expands its reach in the northern part of the country with a new 3S dealership in Ilocos Norte.

Suzuki Auto Ilocos Norte is Suzuki’s 77th dealership nationwide and the 13th dealership under the supervision of Grand Canyon Multi-holdings, Inc., which has recently held a groundbreaking ceremony for the Suzuki Auto Tagum targeted to open by 2020.

Besides strengthening its presence in North Luzon, the new Suzuki dealership aims to engage in the local business and culture of our fellow Ilocanos and contribute to further growing the livelihood industry of Ilocos region by providing convenient and accessible car dealership with variety of vehicles that suit the locales’ commercial and passenger vehicle needs.

“Continuing our business momentum this year, we are very pleased to prove to our Filipino market our commitment to bring Suzuki vehicles to more locations nationwide. We have made it easier and more accessible for more Ilocanos to experience the Suzuki Way of Life through our award-winning and engineered-for-excellence Suzuki vehicles. We are excited to see them in the new Suzuki Auto Ilocos Norte,” shared SPH Director and General Manager for Automobile Division Keiichi Suzuki.

Suzuki Auto Ilocos Norte is located at Barangay 16, San Nicolas. All well-loved Suzuki vehicles, including the recently launched All-New Carry together with the New Vitara, All-New Jimny, Suzuki Swift, Dzire, and the All-New Ertiga, will be available at Suzuki Auto Ilocos Norte.

“Aside from our firm belief in and reliance on Suzuki and its vehicles, we see a strong potential in Ilocos Norte to contribute to local economic progress not just as a tourist district but also, and more importantly, as a promising business zone,” shared Grand Canyon Chairman Peter Po.

With the back-to-back dealership inaugurations and groundbreakings this year, SPH is optimistic about being able to share the Suzuki Way of Life with more Filipinos and taking a more active role in driving growth in the local automotive industry.

For more information about Suzuki visit http://suzuki.com.ph/auto/, like it on https://twitter.com/SuzukiAutoPH and follow on Instagram at @suzukiautoph.

PSALM targets to finalize privatization structure of two power plants by 2020

STATE-LED Power Sector Assets and Liabilities Management Corp. (PSALM) is targeting to complete next year the privatization structure for two power plants through the consultancy assistance of the Asian Development Bank (ABD), its president said.

“Hopefully by next year, we will be able to decide on the privatization structure,” PSALM President and Chief Executive Officer Irene Joy B. Garcia told reporters about the remaining facilities under the company, which was created by law to sell government energy assets.

She identified these as Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants, and the Casecnan multi-purpose project.

“The power plants, they have different structures. We are seeking the assistance of ADB to look at the technicalities of that,” she said, adding CBK will be privatized first.

Ms. Garcia said the need to first come up with a privatization structure through a study by the ADB is because of Casecnan’s ownership structure.

She said government agencies National Irrigation Administration (NIA) and National Power Corp. (Napocor) have an agreement to transfer the latter’s 60% stake in the project to PSALM as called for under Republic Act No. 9136, the Electric Power Industry Reform Act (EPIRA) of 2001.

“Obviously, we need to carve out that 60%. So how do you carve it out? How do you divide the assets? Is it going to be an identification of what are the irrigation assets and what are the power assets?” she said.

She said the agreement between NIA and Napocor does not provide implementing provisions how to divide the 60-40.

Based PSALM’s website, Casecnan is contracted to CE Casecnan Water and Energy Co., Inc. as its independent power producer administrator (IPPA) until April 5, 2022. IPPAs are qualified private sector entities that manage the output from the contracts that Napocor entered into with the independent power producers.

For CBK, Ms. Garcia said ideally the agency wants a single buyer for the power plants. CBK is operated by CBK Power Co. under an IPPA contract until Feb. 7, 2026. IPPAs are appointed through public biddings conducted by PSALM. They gain an opportunity to trade in the wholesale electricity spot market without the expense of building a new plant.

“We are fine-tuning the scope of the coverage of the study of ADB, so that by next year they can start the study,” she said. “I’m not very certain how much time they need, but I’m thinking [that’s about] six months before they come up with the study.” — Victor V. Saulon

Yields on gov’t debt end flat on BSP rate bets

By Carmina Angelica V. Olano
Researcher

YIELDS ON government securities (GS) traded at the secondary market remained flat last week amid mixed expectations on whether the central bank will cut rates or not as the November inflation print picked up last week.

Debt yields went down at an average 3.3 basis points (bps) week on week, according to PHP Bloomberg Valuation (BVAL) Service Reference Rates published on the Philippine Dealing System’s website on Dec. 6.

“The drop in yields was a result of expectations of a rate cut…[Even] as the November inflation was slightly above consensus, year-to-date inflation was still within the Bangko Sentral ng Pilipinas’ (BSP) range. This fuels hopes that the government will consider doing another round of rate cut,” First Metro Asset Management, Inc. said in an e-mail.

For Jonathan L. Ravelas, chief market strategist at BDO Unibank, Inc., most yields moved sideways to down last week, but the downside was “limited.”

He noted that on Nov. 25, BSP Governor Benjamin E. Diokno hinted that a rate cut is still possible this year.

“These recent statements opened the doors for an expansion. [This is why] yields slightly went down [last week]. But with inflation printed higher…[traders] were on a wait-and-see attitude,” he said.

“The increase from 0.8% in October to 1.3% in November is quite fast. So, baka hindi na sila mag cut. (So, the BSP might decide not to cut rates anymore),” he added.

On the sidelines of the Financial Education Stakeholders Expo at SMX Convention Center in Pasay City on Nov. 25, Mr. Diokno hinted that the Monetary Board (MB) could still slash benchmark interest rates anew in their eighth and last policy review for the year on Dec. 12. if conditions warrant further easing this soon beyond the 75 bps in total cuts done so far this year.

“The BSP will always be data-dependent so we will evaluate…every time we have a policy meeting,” he told reporters.

Last week, the Philippine Statistics Authority (PSA) reported that November headline inflation rate was up from 0.8% in October, albeit slower than the six-percent inflation rate posted in November 2018.

The overall rise in prices of widely used goods averaged 2.5% in the 11 months to November, which came out higher than the BSP’s 2.4% forecast, but still within its 2-4% target range for 2019.

At the secondary market last Friday, the 182- and 364-day Treasury bills (T-bills) dropped by 2.6 bps and 3.8 bps, respectively, to fetch 3.345% and 3.472%. On the other hand, the 91-day debt paper inched up by 0.1 bp, yielding 3.179%.

Rates at the belly and long end of the yield curve fell across the board. The rates on the two-, three-, four-, five- and seven-year Treasury bonds (T-bonds) declined by 0.2 bp (3.789%), 1.9 bps (3.922%), 3.2 bps (4.067%), 3.8 bps (4.218%), and 4.2 bps (4.473%).

The 10-, 20-, and 25-year T-bonds saw its yields went down by 5.7 bps, 5.2 bps, and 6.2 bps, respectively, to 4.684%, 5.231%, and 5.236%.

For this week, FAMI said, “We expect the yield curve to trade sideways to slight upward bias as traders await the result of the BSP Monetary Board Meeting on Thursday.”

For BDO’s Mr. Ravelas, he expects yields to go sideways to down.

“Between [last Friday and this] Thursday, most likely yields will move sideways. If expectations of another rate cut persist, these will go down,” he said.

In terms of the possibility of another rate cut, Mr. Ravelas, however, mentioned that the central bank will “most likely…wait for another inflation print to see if there is a need to cut rates.”

The PSA’s December inflation report is expected to be released in January 2020.

Dongfeng opens Isabela dealership

PILIPINAS AUTOGROUP, Inc. (PAI) announced recently the opening of its Dongfeng Isabela showroom and service center. Auto Ten Trade and Services owns and operates the Dongfeng Isabela dealership located at Barangay Taringsing, Cordon, Isabela.

“This is the second Dongfeng dealership of Pilipinas Autogroup, Inc. to be established and this is exactly in line with the statement made a month ago by our chairman, Mr. David Coyukiat. We entered the market of Isabela as we recognize a lot of potential growth as business in this area is booming. From construction, hauling, and transport needs, Dongfeng trucks will provide quality vehicles backed up by after sales support. Four more outlets will be soft-launched in the coming weeks to cover strategic high traffic locations,” revealed Cresencio Fernandez Jr., president of Pilipinas Autogroup, Inc.

Present during the soft launch and blessing were (from left to right): Ruben Ronquillo Jr., Sales Director of PAI; Julie Zuniega; Fr. Patrick Caro; Neil Carlo Federizo, GM of Auto Ten Trade and Services; Nicomedes Federizo; Efren Malupeng, Municipal Administrator of the municipality of Cordon; Jun Deri — consultant for Auto Ten Trade and Services; and Ramil Mendoza, Division Head of Technical and Engineering at PAI.

Financial compensation expected to encourage ASF self-reporting

THE Department of Agriculture (DA) said it will offer financial assistance to hog farmers who file early reports about possible African Swine Fever (ASF) outbreaks in their herds, to reduce the possibility of diseased pigs making it to market.

“Para ma-encourage iyong mga backyard hog raisers to report immediately to authorities kung may sakit na ‘yung mga baboy nila at huwag na nilang ibenta iyong may mga sakit sa mga hog trader (This is to encourage backyard hog raisers to report diseased hogs immediately to authorities, and to not sell these to hog traders),” Agriculture Secretary William D. Dar said in a text message.

Memorandum Order no. 32, series of 2019, signed by Mr. Dar on Dec. 2, calls for “farmers affected by government-organized culling operations (to be provided) financial assistance in cash and/or credit in order to ease the production and financial losses incurred by the farmers.”

The DA will make the payouts from a special account to be initially provided P250 million by the Department of Budget and Management (DBM).

The assistant secretary for livestock and the Bureau of Animal Industry (BAI) have been ordered to draft a Compensation Procedure Manual for approval by the Secretary.

In its report to the World Organization for Animal Health on Nov. 4, the BAI tallied 40,480 affected pigs all over Luzon, including Bulacan, Pampanga, Nueva Ecija, Rizal, Cavite, Pangasinan, and Metro Manila. Of this total, 177 died from ASF, while 40,303 were culled and disposed of.

Compensation will not cover losses related to contaminated feeds, disinfection of plants and equipment and other control measures, restocking costs, economic losses due to unfavorable market conditions, and improvement of biosecurity measures. Rates will also be adjusted from time to time by the Agriculture secretary through an Administrative Order. — Vincent Mariel P. Galang

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