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TDF yields drop on bets of more rate cuts

TERM DEPOSITS continued to fetch lower yields as the markets brace for the upcoming holidays and as they look forward to 2020, with the central bank eyeing at least 50 basis points (bps) in rate cuts.

Tenders for the central bank’s term deposit facility (TDF) totaled P165.274 billion on Wednesday, surpassing the P150 billion on offer, according to data from the Bangko Sentral ng Pilipinas (BSP).

This week’s tenders also went beyond the P181.538 billion in bids the BSP received last week for the P180 billion placed on the auction block.

“Total TDF offer volume in today’s auction was reduced…amid expected increase in demand for cash ahead of the holidays,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement on Wednesday.

Banks’ tenders for the eight-day term deposits reached P73.831 billion, higher than the P60 billion auctioned off by the BSP and also beyond the P66.835 billion in bids seen on Dec. 11.

Yields for the one-week paper ranged from 4.2% to 4.35%, a slimmer margin compared to last week’s range of 4.125-4.4%. This resulted in an average rate of 4.2724%, slipping by 3.16 bps from last week’s 4.304%.

Meanwhile, the 15-day papers saw total bids of P41.519 billion, failing to fill the P50 billion on offer and also lower than the P69.993 billion bids seen last week for the P60 billion the BSP offered.

Lenders sought returns from 4.2% to 4.4099%, a wider band compared to the 4.3% to 4.4055% range last week. With this, the rate for the two-week deposits averaged at 4.3288%, inching up by 0.39 bp from the 4.3249% logged the previous auction.

On the other hand, tenders for the 28-day deposits amounted to P49.924 billion, well above the P40 billion offered by the central bank and also beating the P44.71 billion in tenders seen last week for the P60 billion placed on the auction block.

Rates of the one-month papers clocked in from 4.2750% to 4.4125%, a slimmer margin compared to last week’s 4.29% to 4.49%. This resulted in an average rate of 4.3436%, lower by 0.6 bp from last week’s 4.3496%.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the lower yields came as the market positions ahead of the holidays.

“Expect the market to slant sideways as the year comes to a close. Market moving events have to wait for the new year,” Mr. Asuncion said in an e-mail.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted that the yields this week came after BSP Governor Benjamin E. Diokno’s hints of at least 50 bps worth of rate cuts next year.

“Most BSP TDF auction yields today were slightly lower, consistent with the continued positive reaction by the local financial markets after the recent signals from BSP Governor Diokno about a possible 50-basis-point cut in 2020 that also led to some easing in local interest rate benchmarks since last week,” he said in an e-mail.

Speaking to reporters on Tuesday evening, Mr. Diokno said the BSP gives “forward guidance” and that it looks to cut “interest rates [by] at least 50 bps]” in 2020.

“But on the interest rates at least 50 bps for next year. Kasi (Because) remember we have to raise interest rates by 175 bps [in 2018],” Mr. Diokno said.

“But we’re observing what the other central banks are doing. Eh parang cutting pa rin (It looks like they’re still cutting)…so babantayan natin (we will observe)… but at the moment, we are comfortable where we are,” he added.

The central bank cut benchmark rates by a total of 75 bps this year through three 25-bp reductions done in May, August, and September. This partially dialed back the 175 bps in hikes implemented in 2018 due to elevated inflation.

Currently, policy rates are at four percent for the BSP’s overnight reverse repurchase facility, 3.5% for overnight deposit, and 4.5% for overnight lending.

While auctions for TDF regularly fall on Wednesdays, next week’s auction will be moved to Dec. 26 to make way for Christmas Day. — Luz Wendy T. Noble

PNOC unit to acquire additional stake in Malampaya project

By Victor V. Saulon, Sub-editor

THE exploration unit of state-led Philippine National Oil Co. (PNOC) is exercising its right to acquire 10% of the shares being sold by one of its partners in the offshore Malampaya gas-to-power project, the Energy department’s top official said.

“We exercised the right because we feel that the acquisition price is very advantageous for EC (PNOC Exploration Corp.) to invest,” Department of Energy (DoE) Alfonso G. Cusi told reporters during an informal gathering at the PNOC head office on Wednesday night.

“It’s an opportunity for EC to invest. Maganda ‘yung return na nakikita (The expected return is good),” he added.

Mr. Cusi said he was not sure about the acquisition price, but the board of directors of PNOC-EC had approved of the move. The DoE secretary chairs the PNOC board by virtue of his office.

PNOC’s upstream oil, gas and coal subsidiary holds a 10% stake in the Malampaya deepwater project, with Chevron Malampaya LLC holding 45% and Shell Philippines Exploration B.V. (SPEx) holding the other 45%.

SPEx is the operator of the Service Contract (SC) 38 for Malampaya, the country’s large scale gas discovery. The project is said to supply about a third of the country’s power needs and has contributed over $10 billion in government revenues.

On Nov. 13, Udenna Corp. announced that its subsidiary UC Malampaya Philippines Pte. Ltd. had signed a sale and purchase agreement to acquire the stake of Chevron Corp.’s Philippine unit in the project.

Udenna is the holding firm of Davao City businessman Dennis A. Uy, who also leads Phoenix Petroleum Philippines, Inc., the country’s fastest-growing independent oil firm with a plan to build a liquefied natural gas (LNG) import terminal with Chinese state firm CNOOC Gas and Power Group Co., Ltd. The parties have since sought a suspension of the LNG project.

Separately, DoE Undersecretary Donato D. Marcos said that under the joint operating agreement of SC 38, the partners have a right to match an offer to acquire the stake of any of them.

He said SPEx is “contented” with its 45% share “and they don’t intend to make it bigger.” He said the right to match of PNOC-EC is its proportional participating interest in the project, or 10%. He added that the state firm could buy the entire stake being sold if SPEx declines to exercise its right.

“Ngayon si PNOC-EC pinag-aralan nila ang kanilang financial capabilities. Hindi nila kaya (PNOC-EC evaluated its financial capabilities. They cannot afford it). They are inclined to get only their apportionment,” he said, referring to the 10% of the shares being sold by Chevron Malampaya.

Mr. Marcos said the cost of the 10% shares is about $100 million, although he qualified that the amount was still “under review.” The figure he cited translates the price of the 45% stake being sold at $1 billion. He declined to confirm the price.

Tinder, Netflix, Tencent lead record-breaking year for mobile apps

TINDER, Netflix Inc. and Tencent Holdings Ltd. took the top three spots in App Annie’s 2019 ranking of consumer spending on non-gaming apps, underlining the growing importance of subscription services for generating revenue.

Games offering in-app purchases of virtual currency and upgrades, commonly called microtransactions, continued to lead overall rankings, with video subscriptions dominating the rest of the field. Even before the much-anticipated Disney+ and Apple TV+ services have taken off, Baidu Inc.’s iQiyi, Google’s YouTube and Alibaba Group Holding’s Youku all ranked in the top 10 apps by revenue. This comes in a year when App Annie said total new app downloads and consumer spending will both break records, judging from data collected from January to November.

Tinder’s leading position should not be a surprise, said App Annie, as dating apps of its kind have “unlocked the keys to monetization through subscriptions” and their combined annual revenue has grown 920% between 2014 and 2019, exceeding $2.2 billion in the current year. Facebook Inc. retained its historic lead on overall app downloads, with the top three most-downloaded apps globally remaining Facebook Messenger, Facebook and WhatsApp for the sixth year in a row. It launched its own Facebook Dating service in September.

By the close of this year, App Annie said consumers will have downloaded 120 billion new apps across Apple Inc.’s iOS App Store and Google’s Play Store — that’s without factoring in app updates, re-installations of existing apps or Android installs done via unofficial means. The number marks a 5% increase on last year, and the app-tracking company predicted the record will be broken again in 2020. Consumer revenue is said to be growing at 15% each year, with 2019 set to record close to $90 billion, another new high.

On the gaming front, Sea Ltd.’s Free Fire, the app that has minted two billionaires already, garnered the most global downloads, followed by Tencent’s PUBG Mobile. Call of Duty: Mobile, another Tencent property, also made it into the top 10 for the year, in spite of only being released at the start of October. Sony Corp.’s Fate/Grand Order took the title as most lucrative game — and overall app — of the year, followed by Tencent’s Honour of Kings and perennial moneymaker Candy Crush Saga by Activision Blizzard Inc. All three games are free to play, deriving their massive revenues from small purchases of in-game perks and upgrades.

Looking for the breakout hits of the year, App Annie highlighted Likee by YY Inc., an app for sharing short videos akin to TikTok, as the one with the largest absolute growth in downloads during the year. Two more apps by the same company were in the top four: Noizz for editing video and Hago for social gaming, the latter being especially popular with young users in Indonesia, according to the researchers.

For 2020, App Annie said it expects to see each of the current trends intensifying, with video-centric apps and subscription-based services growing in importance, ubiquity and revenue. — Bloomberg

Sweet treats are made of these

CANADIAN quick service restaurant Tim Hortons launched its holiday collection with the Dark Chocolate Iced Capp and Truffle Timbits.

The signature Iced Capp is given a twist with Hershey’s Cocoa Powder and drizzled with chocolate syrup; while the classic bite-size Timbits are mixed with chocolate brownie filling and Hershey’s Snow Cocoa Powder.

“We listened to our consumers and they want something sweet and indulgent,” Stephanie B. Guerrero, Tim Hortons Philippines marketing director, told BusinessWorld at the store’s branch in Ayala Ave. in Makati City on Dec. 12, adding that the brand has decided on chocolate as “the best sweet treat.”

“The chocolate flavors [in general], really sell well.” Ms. Guerrero said regarding the Filipino’s reception to the brand’s chocolate flavors.

The Dark Chocolate Iced Capp are priced at P155 (small), P175 (medium), and P190 (large); the Truffle Timbits are prized at P15 per piece.

Other items offered during the holiday season are merchandise including notebooks (P90 each), and holiday sweater mug (P650), and hampers (P350 each).

Beginning this month, Tim Hortons also introduced its six cake offerings with American restaurant chain Cheesecake Factory: Red Velvet Cheesecake; Black Out Cake; Wild Strawberries and Cream Cheesecake; Dulce De Leche Caramel; Cinnamon Layer Cheesecake; and Banana Foster Cheesecake.

“Christmas comes once a year, so we’d like to celebrate the season with these luscious offerings as a thank you to our loyal guests. After all, chocolates give you that warm and fuzzy feeling so it’s something that Filipino families will enjoy this festive season,” Guerrero said in a press release.

The cakes are sold at P300 per slice while whole cakes are sold at P4200. Tim Hortons and The Cheesecake Factory’s cakes are available at the following branches: Tim Hortons BF Presidents, Tim Hortons Estancia, Tim Hortons Glorietta 4, Tim Hortons I-Care, Tim Hortons L’Ermitage, Tim Hortons Paseo 111, Tim Hortons SLC Building, Tim Hortons Three E-Com, and Tim Hortons Vistamall, Laguna.

The Cheesecake Factory cakes are a permanent item on the menu, while the holiday offerings are available until Jan. 5, 2020. — Michelle Anne P. Soliman

Era of low sovereign bond yields to persist well into next year — poll

BENGALURU — Major sovereign debt yields will feel the pull of gravity well into next year, with the US 10-year benchmark barely rising by the end of 2020, according to a Reuters poll of fixed-income strategists.

Stock markets have soared this year, with most major indices registering double-digit returns on an improving trade outlook and central banks reverting to easy policies.

That has pushed down most sovereign bond yields to below where they were at the start of 2019, completely wrong-footing bond strategists who this time last year forecast the 10-year Treasury note would rise to 3.30%. It’s now at 1.85%.

Economic growth and inflation expectations in major economies are relatively subdued, although in better shape than thought a few months ago, and so the 85 experts polled by Reuters have tamed their expectations for yields accordingly.

Fixed-income strategists forecast the US 10-year Treasury would yield 1.9% by end-2020, according to their median projection. That is just 5 basis points higher than where it is now, the smallest 12-month predicted increase in 17 years of Reuters polls on major sovereign bond markets.

Yields on Germany’s 10-year bunds and Japanese government bonds are expected to stay negative for the next 12 months. British 10-year gilts are forecast to yield less than 1% for the same period. The yield is currently about 0.8%

“It’s our view that the era of low bond yields will continue. When you have economic growth between 1% and 2% and inflation expectations really mute at the same time, there’s not much forcing bond yields higher,” said James Orlando, senior economist at TD.

“That’s just the world we live in right now. Until you see economic growth really starting to accelerate, like consistent 2%-3% growth, bond yields close to 2% is probably what you’ll be looking at in the US”

While fears of a US recession and an escalating trade war with China pushed major sovereign bond yields to multi-year lows in September, improvement in sentiment on both fronts has not translated into analysts predicting major changes in the sovereign bond market.

UK GILTS SEEN MOST AT RISK
A significant minority of analysts — 12 out of 27 — who answered an additional question on which major sovereign bonds were most at risk of a sell-off in 2020 chose UK gilts.

Eight picked US Treasuries and the rest, seven, chose German Bunds.

Among analysts who answered a separate question, 17 of 33 — a near-split — said risks to their yield forecasts were skewed more to the upside.

The rest, 16, said risks were skewed to the downside.

“The combination of slightly better economic data and trade war tensions easing has been the main driver of markets,” said Elwin de Groot, head of macro strategy at Rabobank.

“Ultimately we think this will not be sustained and we will see resumption of declines in yields.”

A much-awaited “Phase One” trade deal between the US and China, following a couple of years of tensions and tit-for-tat tariff hikes, has not yet done much beyond push up the stock market.

Among analysts who answered a question on what was likely to happen to US Treasury yields if there was clear evidence of both countries working towards resolving their trade dispute, 17 of 32 said there would be a significant pickup.

A remaining 14 said there would be no material impact, and only one said there would be a significant decline.

“In the short-term we are being led around by the nose over these trade headlines… it’ll (a trade deal) certainly help boost yields in the short term but it’s not going to last more than a couple of weeks,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott. — Reuters

SN Aboitiz plans venture into ground-mounted solar power plants

SN Aboitiz Power is planning to venture into ground-mounted solar power plants to add to its portfolio of energy sources, which are mostly large hydroelectric power plants, the company’s president said.

“I’d like to at least have maybe 50 megawatts (MW) a year, 25-50 MW a year, that we could trade,” Joseph S. Yu, President and Chief Executive Officer of SN Aboitiz.

Asked about when the company plans to starting building solar power projects, he said: “Maybe the year after.”

Mr. Yu said the company does not see any reason to stop expanding its annual capacity target.

“We just keep going as long as the market could bear it,” he said, adding that the company would continue to push hydroelectric power development.

SN Aboitiz is the joint venture of Norway’s SN Power AS and listed energy company Aboitiz Power Corp. It owns and operates the 360-MW to 380-MW Magat hydroelectric power plant on the border of Isabela and Ifugao provinces; the 8.5-MW Maris hydro plant in Isabela; the 105-MW Ambuklao hydro plant in Benguet; and the 140-MW Binga hydro plant in Benguet.

Last year, the company confirmed an announcement made by state agency National Irrigation Administration that they partnered to develop a floating solar farm on Magat dam with a capacity of 200 kilowatts.

The pilot floating solar project was meant to be tested for strong typhoons this year, but the storms that came were not in the strength that the facility was meant to withstand, Mr. Yu said.

He said the company has spent about $400,000 for the pilot project.

For the company’s planned solar power capacity, Mr. Yu said he was looking at a combination of ground-mounted and floating solar farms.

SN Aboitiz may also study other technologies such wind power, although it had never dabbled on onshore or offshore wind farms.

“But if [the opportunity is] there we can put resources on that,” Mr. Yu said.

“The other thing also is as more variable renewable energy comes in, somebody has to come in and help modulate the frequency of the grid,” he said, referring to battery storage systems.

“So you have two places there for us. One is the hydro side because hydropower plants are one of the biggest batteries you could have. And of course, battery energy storage systems,” Mr. Yu said. — Victor V. Saulon

Intel buys Habana Labs for $2 billion

JERUSALEM — Intel Corp. has bought Israel-based artificial intelligence (AI) firm Habana Labs for about $2 billion, the chipmaker said on Monday, seeking to expand its AI portfolio to bolster its data-center business.

Intel expects the fast-growing AI chip market to exceed $25 billion by 2024, with its own AI-driven revenues this year seen rising 20% from 2018 to more than $3.5 billion.

Intel has increasingly been depending on sales to data centers as PC sales stagnate.

Habana, an AI processor firm, was founded in 2016 and has offices in Tel Aviv, San Jose, Beijing and Gdansk, Poland. It has raised $120 million to date, including $75 million in a funding round led by Intel Capital last year.

The deal follows a string of AI-related acquisitions by Intel in recent years, including Movidius, Nervana, Altera and Mobileye.

Navin Shenoy, who oversees Intel’s data center group, told Reuters in an interview that each set of chips is designed to solve a different problem, whether it is helping cars drive themselves or training machine-learning algorithms in data centers.

Shenoy said Habana’s chips are aimed at so-called deep learning, a subset of machine learning, being done in data centers.

“What we hear from our customers is that there’s a heterogonous set of needs,” Shenoy said. “The market opportunities are significant and large enough that we can build out a specialized portfolio to go solve those problems and do it in a way that customers feel good about and respond well to.”

Habana launched its new Gaudi AI training processor in June that it said will deliver much faster processing speeds to compete with similar offerings from Intel’s rival Nvidia Corp.

Nvidia outbid Intel last March to buy Israeli chipmaker Mellanox for $6.9 billion, boosting its data-center chip business.

Habana will remain an independent business unit led by its current management team and report to Intel’s data platforms group.

The company will continue to be based in Israel and its Chairman Avigdor Willenz will serve as a senior adviser to Intel, the companies said.

Willenz sold chip designer Galileo Technologies to Marvell Technology Group for $2.7 billion in 2001, and Annapurna Labs to Amazon for an estimated $370 million in 2015.

With five facilities, Intel already has a significant presence in Israel and has become one of the country’s top exporters since launching operations there in 1974.

The California-based chip giant moved its automotive technologies headquarters to Jerusalem after buying Mobileye for $15 billion in 2017. It is investing $11 billion to expand its local chip factory and also launched a tech accelerator in Israel in June. — Reuters

Whisky galore! Largest ever collection could fetch up to $10M

LONDON — Scottish auctioneers hope to sell off 3,900 bottles of rare whisky for up to £8 million ($10.3 million) next year in what they said would be the largest private collection of the tipple ever to go up for auction.

Colorado businessman Richard Gooding, who died in 2014 aged 67, amassed the collection over two decades, flying regularly to Scotland to visit auction houses and distilleries in a quest for some of the world’s rarest single malts.

Perthshire-based Whisky Auctioneer will sell the individual bottles in the so called “perfect collection” of Scotch at two separate online auctions next year. The collection includes the world’s most expensive whisky — a Macallan.

A single bottle of Fine and Rare Macallan from 1926 is expected to fetch up to £1.2 million. A 1919 Springbank from the collection is valued at £180,000 to £220,000. A rare 1937 Glenfiddich is likely to sell for £60,000.

“Its sheer scale and rarity makes it one of the most exciting discoveries in the whisky world,” Iain McClune, the founder of Whisky Auctioneer, said.

A bottle of Gooding’s favorite Black Bowmore from 1964 has an estimated hammer price of up to £17,000.

The collection includes bottlings from some of Scotland’s lost distilleries, including Old Orkney from Stromness Distillery and Dallas Dhu.

“Collecting Scotch was one of Richard’s greatest passions — an endeavor that spanned over two decades,” said Gooding’s wife, Nancy. “He loved every aspect of it; from researching the many single malt distilleries to visiting them and tasting their whiskies.”

Gooding, who kept the collection at his own private pub at his home in the United States, owned the Pepsi Cola Bottling Company from 1979 until 1988, when he sold it to its parent company PepsiCo. — Reuters

More Fed officials see little need to change interest rates anytime soon

US FEDERAL Reserve officials said they support the central bank’s current stance. — REUTERS

NEW YORK — Two Federal Reserve policy makers on Tuesday made clear that they back the central bank’s current stance, echoing words by other policy makers last week that interest rates are in a sweet spot heading into 2020 and that the bar to cutting or raising them will be high.

“The appropriate path of policy is to stay where we are,” Dallas Fed President Robert Kaplan, who is a voting member of the Fed’s rate-setting committee next year, said at an event hosted by the Council on Foreign Relations in New York. He added that he had “penciled in” no changes to borrowing costs in 2020.

Boston Fed President Eric Rosengren also said the Fed is unlikely to need to cut interest rates further in the near term, barring a “material change” in the outlook for the US economy. He said that so far, there is little chance of an economic downturn next year.

The US central bank unanimously voted to leave interest rates steady last week. It had lowered its benchmark overnight lending rate three times this year to counteract harmful impacts on the economy from slowing global growth and the US-China trade war.

At the recent meeting, economic projections showed 13 of the Fed’s 17 policy makers forecast no change in interest rates until at least 2021. The other four saw only one rate hike next year.

Mr. Kaplan previously said he supported the most recent rate cut on the condition that the Fed send a signal that no further cuts were likely without a substantial change to the economic outlook.

Last Friday, two top Fed policy makers also said they were content to leave rates where they are for the foreseeable future.

Mr. Kaplan said he believed the Fed’s cuts had helped balance risks to the economy compared with earlier this year and that his base case is that US consumers will continue to power the economy in 2020 as long as the job market remains tight. US unemployment is near a 50-year low.

Mr. Rosengren, who voted against all three of the central bank’s interest rate reductions this year, also expressed confidence in the outlook, reiterating the Fed’s recent mantra that the economy is in “a good place.” He noted retailers he has spoken with are optimistic about the holiday sales period.

“Plentiful jobs and growth in income have provided improvements in confidence and bode well for holiday sales and beyond,” Mr. Rosengren said in a speech to the Forecasters Club of New York.

That said, Mr. Kaplan argued that while he expects the economy to grow about 2% next year, inflation pressures are likely to remain benign because businesses are not able to pass higher prices along to their customers.

Rosengren, by contrast, said he sees inflation rising to around the Fed’s 2% goal, despite the central bank having missed that mark repeatedly in the decade since the financial crisis.

On risks to the economy, Mr. Kaplan cautioned that the Trump administration’s strategy of using tariff threats as a foreign policy tool against multiple countries poses ongoing uncertainty. While an easing of tensions in the US-China trade war last week was a welcome development, he said, it did not mean tensions are going away.

“‘Phase one’ is better than not having a ‘phase one’ but it doesn’t mean there won’t still be trade uncertainty,” Mr. Kaplan said in an interview later on Tuesday with Bloomberg TV. “I think the trade issues with China are going to go on for… years.” — Reuters

Asian business sentiment bounces back this quarter

SYDNEY — Confidence among Asian businesses rebounded sharply this quarter to hit an 18-month high with firms reporting a pickup in sales, though most are holding off on hiring as trade war uncertainty weighs, a Thomson Reuters/INSEAD survey found.

The Thomson Reuters/INSEAD Asian Business Sentiment Index tracking firms’ six-month outlook jumped 13 points to 71 for the fourth quarter. That lifted confidence from close to a decade low in the previous quarter to its highest since June last year.

The swing is also the strongest turnaround since the tail end of the eurozone debt crisis in 2011, when China was pouring stimulus into its economy as well.

A reading above 50 means optimistic respondents outnumbered pessimists.

This quarter revealed a noticeable shift from neutral to optimistic, and showed the strongest reading on sales growth in a year. Yet the majority of firms are not yet confident enough to plan hiring.

“Conditions, expectations and some of the uncertainty has improved over the last quarter,” said Antonio Fatas, economics professor at global business school INSEAD in Singapore, pointing to easing tensions between China and the United States.

“But I don’t see this uncertainty disappearing, I think some of these tensions are going to stay with us maybe for years or decades.”

Respondents rated their chief risk as the Sino-US trade war, which has been a regular feature in the survey for much of the past two years as the conflict has weighed on global growth.

A total of 102 companies responded to the survey, conducted in 11 Asia-Pacific countries where 45% of the world’s population lives and almost a third of global gross domestic product is generated.

Participants included firms in industries as varied as automaking, tourism and energy, such as Japan’s Suzuki Motor Corp., Thai hotelier Minor International PCL and Australia’s Oil Search Ltd.

READY TO REAP
The survey was conducted from Nov. 29 to Dec. 13, as Chinese and U.S. negotiators finalized a “phase-one” deal to reduce some tariff barriers.

The most recent International Monetary Fund global growth projections forecast the trade war will drag the world’s economy to its slowest pace of expansion since the 2008-2009 financial crisis.

“Although the external environment remains challenging, Minor is confident that we will be able to withstand such challenges,” said Chaiyapat Paitoon, deputy corporate chief financial officer at Minor International.

The firm has sought to diversify, increasing its stake to control nearly all of Spain’s NH Hotels Group last year, and has grown its food segment with the November purchase of a Korean fried chicken franchise in Thailand.

“We are putting in extra effort to remain at the forefront of consumers’ minds, so we are ready to reap the benefit when the environment becomes more conducive,” Paitoon said.

Elsewhere, there are already green shoots. After months of weakness, growth in China’s industrial and retail sectors beat expectations in November, as government support propped up demand.

The chipmakers benchmark, the Philadelphia SE Semiconductor Index — seen as a bellwether of the global economy since demand for chips is a reliable proxy for growth and consumption — hit an all-time high this week.

However the headline numbers remain subdued as protectionism bites, with China’s economic growth, for example, at its slowest in about a generation.

“At least as far as next year is concerned, I think the caution is still pretty much warranted,” said Howie Lee, economist at OCBC Bank in Singapore.

“We are not out of the woods yet … but deeper into the decade I think the dynamics will change a little bit, assuming that this first wave of the trade war has fully blown over.” — Reuters

Apple buys UK startup to improve iPhone picture taking

APPLE INC. acquired a UK-based startup with technology that improves photos taken on smartphones.

According to filings made public in the UK on Thursday, Apple corporate lawyer Peter Denwood was recently named a director of Cambridge, UK-based Spectral Edge Ltd., while the startup’s other advisers and board members were terminated.

The documents show that Apple now controls Spectral. Similar filings in the past have revealed other startup acquisitions by the Cupertino, California-based tech giant, such as the purchase of digital marketing startup DataTiger earlier this year.

A purchase price for Spectral Edge could not be ascertained. The startup said last year that it raised more than $5 million in funding.

Apple didn’t respond to requests for comment. The US company has opened offices in Cambridge in recent years to work on artificial intelligence for products like the Siri digital assistant.

Spectral Edge uses a type of AI called machine learning to make smartphone pictures crisper, with more accurate colors. Its technology takes an infrared shot and blends it with a standard photo to improve the image.

Photography has become a key differentiator in the smartphone market. Apple has rapidly added new camera features to the iPhone, including a triple-lens system in the iPhone 11 Pro earlier this year. It’s also planning to add a 3-D camera to iPhones next year for improved depth sensing and augmented reality.

Spectral Edge’s technology could contribute to the AI Apple already uses in its Camera app by continuing to improve the quality of photos in low-light environments. The startup has said its technology can be applied via software or chips. Apple’s latest devices include custom processors that assist with picture taking.

Apple’s purchase of the firm is one of several deals it has made this year, including buying Drive.ai’s self-driving car team and acquiring Intel Corp.’s smartphone modem business. — Bloomberg

Holiday feasts in the Metro

WHEREVER YOU go, you’ll have a taste of Christmas cheer with these selections from some of the city’s best-known restaurants.

MANILA AND BAY AREA
Crystal Dragon

Diners are in for an excellent gourmet Cantonese dining experience with Crystal Dragon’s Festive Seasons set menu available for lunch and dinner this December. The bespoke menu (P2,580++ per person) includes a Combination Happiness Platter consisting of Wok-fried Diced Turkey in Golden Cup and Brown Bean Sauce and Baked Marinated Eel and Crispy Bean Curd with Chilled Rose Oolong Tea Jelly with Winter melon completing the celebratory menu.

Nobu Manila
This yuletide season, Nobu curated eight-course Omakase meal (P5,600++) showcasing Chef Nobu Matsuhisa’s Japanese-Peruvian fusion artistry. The menu includes an assortment of nigiri and a serving of Whitefish with Extra Virgin Olive Oil, Ponzu and Crispy Red Onion, and dessert composed of Kuromitsu Syrup, Kiwi, Strawberries, and Green Tea Ice Cream.

Red Ginger
For cravings of Southeast Asian flavors, Red Ginger highlights five dishes for its Festive Season Menu: Crab and Prawn Rolls, a medley of soft-shelled crab, poached prawns, pork jowl and mango rice paper roll; Beef Luc Lac, a sumptuous dish of wok-flamed beef tenderloin with brandy, watercress and heirloom tomatoes; Clay Pot Pork Knuckle, a serving of slow-braised pork knuckle with fermented bean curd, assorted mushroom and baby Chinese cabbage; Ikan Goreng Berempah or crispy-fried pomfret fish with spicy creamy tomato sauce; and Ayam Kodok or Indonesian-style slow-roasted chicken with seven spices and traditional stuffing served with assorted steamed vegetables. For inquiries, call 8800-8080 or e-mail guestservices@cod-manila.com or visit www.cityofdreamsmanila.com.

Sheraton Manila
The Buffet of S Kitchen in Sheraton Manila will be decked with signature holiday staples from glazed ham, leg of lamb, roasted turkey, steak, and all other appetizing trimmings. Mark your calendars for these special festive buffets for P2,900–both for lunch and dinner- during Noche Buena and Christmas Day. Call 7902-1800 for buffet reservations.

Diamond Hotel Philippines
Take your holiday reunions to a whole new level with culinary surprises at the lunch and dinner buffet at Corniche restaurant. For an Asian twist on your yuletide get-together, let Japanese chefs set up a lavish menu at Yurakuen, crafted to satisfy groups of up to six persons. Christmas celebrations take a sky-high turn at Bar 27, where snazzy signature cocktails are accompanied by a live band, tapas and pica-pica. Purchase dining vouchers for all these festive holiday offers at onlineshopping.diamondhotel.com for up to 30% off on online exclusive discounts. For reservations, call Diamond Hotel at 8528-3000 ext. 1121.

Marriott Manila
On Christmas Day, savor a flavorful feast with a Christmas Eve Dinner (6 p.m. to 10:30 p.m.) for P3,300, Noche Buena Buffet (11:30 p.m. to 1 a.m.) for P1,900, Christmas Day Lunch (12 a.m. to 3 p.m.) for P3,300, and Christmas Day Dinner (6 p.m. to 10:30 p.m.) for P3,300. Apart from festive gatherings, join the evening mass on December 24 (9 p.m.) and 31 (7 p.m.) at the Manila Ballroom of Marriott Hotel Manila. Drop by at Marriott Café during Karneval Sundays and on Christmas Day for an exclusive photo opportunity with Santa Claus from December 8, 15, 22, and 25 (12 p.m., 1:45 p.m., and 2:30 p.m.). For reservations, call 8988-9999 or visit www.manilamarriott.com.

New World Manila Bay Hotel
Relish classic holiday dishes which include the famous Christmas ham, the perfect roast turkey, Christmas Yule log cake and other holiday treats at the Market Cafe. The Yuletide Buffet is available on both the 24th and 25th lunch and dinner at P3,500 per person. At Li Li, indulge with an All-You-Can-Eat Dim Sum feast featuring classic favorites and carefully handcrafted specialties. Enjoy the Christmas Yum Cha on the 25th for lunch at P2,288 per person and delight in the Festive Special Menu that comes in two special sets at P2,888 and P3,488 on 24 and 25 December 2019 lunch and dinner, for a minimum of two persons.

MAKATI
Discovery Primea
Tapenade highlights a decadent buffet selection of Mediterranean dishes coupled with local favorites at P2,500++ per person. On Dec. 24, enjoy a classic Italian-themed Christmas Eve dinner feast featuring a hearty spread of antipasti, the hotel’s signature brick oven-baked pizzas, pastas and risottos, Osso Bucco and USDA Prime Rib Roast. The Christmas Day lunch and dinner buffet spreads offer fresh salads, appetizers, baked rice specialties, and French flavors from Lamb Bourguignon, Salmon Coulibac, and Chicken Chasseur. The dinner buffet spread on New Year’s Eve features a medley of Spanish fare including Tapas and Cocas ended by Churros con Chocolate. The Christmas Eve dinner at Flame features a four-course menu of finely cooked dishes such as the Pacific White Snapper Carpaccio, Pan-Seared Foie Gras, Grilled US Beef Short Ribs, and Auro Chocolate Kulfi offered at P3,500++ per person. For inquiries and reservations, call 7955-8888 or e-mail primea.restaurants@discovery.com.ph.

Peninsula Manila
The holiday dining options and schedules of the Peninsula Manila for the holidays include meals at The Upper Lobby, Spices, Old Manila, and Escolta. On the 24th, the Upper Lobby’s Merienda Buffet will be open from 2:30 p.m. to 5:30 p.m. and is priced at P2,900 (including a glass of Champagne), P2,300 (adults), and P1,150 (children under 12). For dinner on the 24th, the buffet will be priced at P4,500 (adults) and P2,250 (children under 12), and will be available from 6:30 p.m. to 10 p.m. Spices, offers à la carte Lunch & Dinner at 11:30 a.m. to 2:30 p.m., and 6 p.m. to 11 p.m., priced at P2,300 for adults, and P1,100 for children. At Old Manila, there’s the five-course set dinner menu, priced at P6,000, but P7,500 will get free-flowing champagne spirits. The Christmas Roast at Escolta is available for lunch, at P4,500 with free-flowing sparkling wine, and P3,200 and P1,600 for adults and children. A lobster and seafood dinner priced at P5,300 with free-flowing champagne andspirits and P3,800 and P1,900 for adults and children. The Lobby opens at breakfast on Christmas Day priced at P1,700 for adults and P950 for children. The five-course set dinner at Old Manila will be priced at P6,000 on Christmas Day with free-flowing drinks, but the rest of the promotions will have the same prices for Christmas day. Call 8887-2888 for reservations.

New World Makati Hotel
On Christmas Eve, guests can experience a five-course dinner at The Glasshouse priced at P3,888 nett per person.

The evening menu includes pan-seared duck foie gras with celeriac purée, roasted pear and marsala jus and ending with a white chocolate parfait with ginger crumbs and black currant ice cream. On Christmas Eve and Christmas Day at Cafe 1228, guests dine on oven-roasted turkey stuffed with chestnuts and prunes, roasted marinated rib eye,and native lechon. Prices are at P2,300 for Christmas Eve lunch, P2,988 for Christmas Eve dinner and Christmas Day lunch and dinner. Chinese cuisine take center stage at Jasmine restaurant, as it offers three lunch and dinner set menus for Christmas Eve and Christmas Day. The Happiness set menu (P1,960) includes hot prawn chicken salad, lobster corn soup, and wok-fried beef tenderloin in XO sauce. The roasted suckling pig salad introduces the Prosperity set menu (P2,070), followed by crab roe with fish maw in bamboo pith soup and stir-fried fish fillet with bean curd and vegetables soya sauce. For the Auspicious set menu (P2,180), the Peking duck salad precedes the dried scallop with fish maw in sea cucumber soup and braised local abalone with duck feet and vegetables. For inquiries, reservations, and orders, call 8811-6888 or e-mail reservations.manila@newworldhotels.com, catering.manila@newworldhotels.com, or FandBreservations.manila@newworldhotels.com.

QUEZON CITY AND PASIG
Richmonde Hotel Ortigas
The Christmas Eve Dinner Buffet features a splendid selection of Noche Buena favorites of Filipino-Spanish dishes like queso con pimiento, Lucban jardinera, arroz Valenciana, Lechon roll, and churros con tsokolate. The Christmas Eve Dinner Buffet,served from 6 p.m. to 10 p.m., is priced at P1480 nett per person. For inquiries and reservations, call 8638-7777.

Eastwood Richmonde Hotel

Eastwood Richmonde Hotel offers a holiday party package for P46,100 nett for 30 people including sound system and buffet lunch and dinner. A carving station can be added for P220 per person. For banquet inquiries and bookings, contact Eastwood Richmonde Hotel at 8570-777 or e-mail erhbanquets@richmondehotel.com.ph.

Marco Polo Ortigas Manila
Guests having Christmas Even dinner at Cucina may enjoy a special per-guest rate of P3,850, while those feasting on Noche Buena may do so at P1,850. Cucina offers Christmas classics at P2,988 per guest (lunch or dinner) on Christmas day. Authentic Cantonese cuisine are centerstage at Lung Hin. The restaurant’s team led by Chinese Executive Chef Ken Leung, present curated set menus for Christmas (available from 24 to 26 December 2019). These selections are available for tables of 10 guests. Reservations may be made in advance for guests who wish to dine in any of Lung Hin’s private dining rooms. For reservations, call 7720-7720 or through restaurant.mnl@marcopolohotels.com.

Luxent
Those who want a great place to celebrate Christmas without the hassle of cooking will find the Holiday Dinner Buffet offer at the Garden Café the perfect pass to a foodie celebration. For P1,888 per person, guests can dine all they want with mouth-watering Christmas specials like Lechon, pine ham, and the finest house wines and local beers available. It’s a season for indulgence for guests who want to have their fill of various cuisines. For reservations or inquiries, please call (02) 8863-7777.

OUTSIDE THE CITY
Discovery Country Suites
This year’s Christmas Feast Sets (P3,650+) at Restaurant Verbena highlight entrées of signature USDA Shortplate with Roasted Brussels Sprouts and Truffle Potato Gratin and Roasted Turkey Roulade with Sausage and Herb Stuffing, Giblets Gravy and Cranberry Sauce, among others. A three-course holiday set menu (P1,285+) is also available featuring Roasted Chestnut and Carrot Ginger bisque served with Turkey Croquettes and garnished with Smoked Paprika and Edible flowers and Braised Short Ribs with Truffle Sweet Potato puree, Roasted Brussels Sprouts. For dessert, Pumpkin pie with bacon and parmesan ice cream will be served. Restaurant Verbena is located at Discovery Country Suites along 300 Calamba Road, San Jose, Tagaytay City, 4120 Philippines. For inquiries and reservations, call 529-8172, or e-mail reservations@dcs.discovery.com.ph.

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