New RS models to spearhead Audi Sport arrival in PHL

December 7, 2020 | 12:02 am

THE LOCAL PORTFOLIO of Ingolstadt-based car maker Audi will get a sporty boost with the imminent arrival of RS models from Audi Sport, its high-performance division.

Set to debut this month, according to PGA Cars, are the Audi RS 3 Sedan, RS 6 Avant and RS Q8. More RS models, including the new R8 supercar, will join Audi Sport’s RS range in the Philippines in 2021.

Audi Sport’s RS models encompass all vehicle segments — from compacts, sedans, coupes and wagons, to crossovers and full-size SUVs. RS models head the respective product lines in the Audi range, “defined by distinct designs and a capacity to be driven daily even if these are focused on performance.” Other current RS models include the RS 4 Avant, RS 5 Coupe, RS 5 Sportback, RS 7 Sportback, TT RS Coupe, TT RS Roadster, RS Q3 and RS Q3 Sportback. Of note, the R8 was also developed by Audi Sport.

RS models boast Audi’s iconic Quattro all-wheel drive system — with the Quattro name “representing sportiness, safe driving, technical expertise and peak performance in a competitive environment.”

The brand points to the success of Quattro models on the road and victories on the track in the last 40 years as testament to the benefits and advantages of the technology.

Employing Quattro technology, Audi won the World Rally Championship’s manufacturers’ title in 1982, the drivers’ title in 1983 and both crowns in 1984. In 1987, Walter Rohrl, driving an Audi Sport S1, won the legendary Pikes Peak hill climb event. Quattro technology is also said to have helped the brand get the US Trans-Am championship in 1988 and seven national championships in 1996. Audi Sport now exits the Deutsche Tourenwagen Masters (or German Touring Cars Masters) after taking the German touring car series’ overall championships in 1990, 1991, 2002, 2004, 2007, 2008, 2009, 2011, 2013, 2017, 2019, and 2020.

Audi Sport teams since 2000 have scored 12 victories in the 24 Hours of Le Mans, counting in the three consecutive wins of the diesel-powered Audi R10 TDI quattro in 2006, 2007 and 2008. The Audi R18 e-tron Quattro with a hybrid drive accounted for three of the Le Mans victories. It also won two drivers’ and manufacturers’ crowns in the World Endurance Championship.

Motorsports participation inspires and shapes RS models and their form-follows-function approach. In most RS models, the proportion and position of Audi’s signature Singleframe grille are similar to the Audi R8’s — wider and lower compared to standard Audi models. Instead of chrome, they get black trims. “Some RS models have horizontal slits between the grille and the hood, evoking the iconic Audi Sport Quattro of 1984, while others have flared fenders or wider wheel arches — in the case of the Audi RS6 Avant and RS Q8, these can accommodate 22-inch and 23-inch wheels, respectively. Meanwhile, huge air inlets and elliptical tailpipes hint at the models’ turbocharged engines,” said Audi in a release.

RS models undergo development work at the Nürburgring — with each logging at least 8,000 kilometers of testing at the acclaimed German track. “Through this, Audi Sport can determine how RS models’ powertrain and suspension components perform under extreme conditions.” The company revealed that the Audi RS Q8, which currently holds the official fastest lap time for SUVs at the Nürburgring, especially benefited from the testing there.

Audi Sport RS models are also said to boast modern efficiency. Audi technologies like a mild hybrid system based on a 48-volt electrical system, and the cylinder deactivation feature as used in Audi’s V8 TFSI engine, “are fine-tuned to a greater degree, creating a character that is more identifiable to the RS line.”

Audi Sport rolls out RS models mainly from Neckarsulm, Germany, where the cars are assembled by hand. “In this place, RS models’ bodies are assembled on aluminum jigs that use laser scanners to adjust surfaces, joints and radii down to the tenth of a millimeter. This benefits the aerodynamics and build quality of each RS model. Other development work on RS models focuses on their powertrain and suspension,” said the company.

“Our customers demand the best products on the market,” said Oliver Hoffmann, managing director of Audi Sport. “We have the best specialists and teams to meet their high expectations.”

Australian wheat exporters pull back from key China market

December 7, 2020 | 12:01 am

BEIJING/SYDNEY — China’s wheat buyers are scrambling to source low-gluten wheat for the country’s booming fancy bakery market, traders said, as exporters in key supplier Australia shy away from striking sales deals amid escalating trade tensions.

The unusual move by Australian exporters to hold back from offering grain in the Chinese market comes even as the country harvests one of its largest-ever crops while demand from the world’s second-biggest economy has surged.

But after China blocked some imports of timber, and introduced high tariffs on wine and barley that immediately halted trade, exporters say the risk of political entanglements has simply become too high.

“Obviously China is a big market but no one in their right mind would be selling to them and putting new business into that market because of what is happening with barley and other agricultural commodities,” said Brett Donoghue, export manager for New South Wales-based grain marketer Agracom.

Australia’s ties with top trade partner China soured in 2018 when it became the first country to publicly ban Chinese tech giant Huawei from supplying equipment for its 5G network over data security concerns.

Things have gone sharply downhill since Canberra called for an inquiry into the origins of the novel coronavirus pandemic, first observed in central China late last year.

Tit-for-tat diplomatic reprisals have since followed, as well as a raft of trade measures imposed by China on Australian exports.

While China has in recent years been the dominant buyer of Australian barley, it typically purchases well under 10% of Australia’s wheat exports.

But arrivals in the first 10 months of this year have surged to 385,259 tons, almost five times the level of the same period last year, amid favorable pricing and Beijing stepping up buying of grain to fulfil World Trade Organization obligations.

Australia’s low-gluten wheat is ideal for producing the flour used in white, fluffy cakes that have become popular among the fast-growing Chinese middle class, traders said.

Though China is the world’s top wheat producer, it does not produce enough high quality low-gluten wheat to meet demand for changing tastes.

China usually buys Australian wheat in the fourth quarter for shipment in January, said a manager with a Chinese buyer who declined to be identified because he was not authorized to speak with the media.

But Beijing has already warned it would strengthen inspections on Australian wheat shipments, raising the chances that cargoes of grain could be rejected or stranded in China and prompting sellers to avoid the market.

“We bought US white wheat instead, for delivery in the first quarter next year. But there aren’t many other options left,” said the Chinese manager.

China has booked about 386,000 tons of American white wheat in the marketing year that started in June, the most since 2017, according to US Department of Agriculture data.

French wheat is too yellow for use in white cakes, and also pricey after demand surged for its use in animal feed in China, added the buyer.

Reluctance to enter deals for Australia’s wheat could also soon be felt in China itself.

“Going forward, no one in their right mind in China will buy Australian wheat,” said a senior trader at a leading wheat miller in China, speaking on condition of anonymity because he was not authorized to speak to the media.

Pre-existing deals for Australian wheat are being executed without washouts, he noted. Still, he said, “Importers have to see what is going on and toe the line.” — Reuters

Style (12/07/20)

December 7, 2020 | 12:01 am

Ortigas Library holds Christmas sale

THE ORTIGAS Foundation Library will be holding a special Christmas sale from Dec. 14 to 16, 9 a.m. to 4 p.m., at the library premises. Take advantage of the price drops onsite as regular prices apply on online orders. The sale includes books, and bags, mugs, cards, pouches, T-shirts, gift bags, scarfs, and pouches all decorated with illustrations of Philippine life from the library’s collection. The Ortigas Foundation Library is on the 2^nd floor of the Ortigas Bldg., Ortigas corner Meralco Aves, Ortigas Center, Pasig City. Wear face masks and face shields for safe shopping.

Holiday decor and gifts at Artefino

THE POPULAR Artefino bazaar has gone online and can be found here: SHOPARTEFINO — shopartefino. Among its many finds from traditional artisans to updated crafts, Artefino has a Holiday Home & Décor collection that will enhance home based gatherings this holiday season. Among these are an eight-piece capiz shell nativity set and upcycled ornaments from the NVC Foundation, and the cunning Islaw planter (a carabao shaped basket) from Zarah Juan. Meanwhile, in collaboration with The Seven Pantry, Artefino has put together gift selections that come in a beautiful pandan basket made by local communities of Cebu. Each gift bag holds a collection of locally sourced, homegrown, and delicious snacks and condiments.

Shop and support the museums

The famous MaArte bazaar has gone online this year. One can start working on their Christmas list in the comfort of one’s home through MaArte @ ZALORA and in the process support local craftsmen and help preserve our cultural heritage as well. From clothes and jewelry to houseware and personal items, bags to gift tags, watches to handwoven fabrics, all these and more are available. The MaArte Fair is organized by the Museum Foundation of the Philippines to raise funding support for the National Museum and its network. A portion of the proceeds from the sales goes to support the National Museum of the Philippines and other cultural projects of the Museum Foundation of the Philippines, Inc.

Rustan’s shopping chat platform

TO MAKE gift-giving easy this Christmas, Rustan Marketing Corp. has launched its Chat Commerce platform: Shop & Shop. It makes shopping from home a social experience by allowing customers to browse through the official Facebook page and connect with the virtual assistant. Highlighting over 1,000 products from 40 global brands, shoppers can now purchase their favorite products and enjoy exclusive discounts up to 60% off. Among the brands on the page are Samsonite, American Tourister, Max Factor, Nuxe, BKR, Babyliss, Charriol, Vera Wang, Anne Klein Watches, Maidenform, Champion, Jack Nicklaus, Levi’s Footwear, Tefal Cookware, and Cuisinart. Shop & Shop’s virtual assistant helps customers find the best item, the right size, and the correct specs while guaranteeing safety for an overall convenient purchase. Shop & Shop is open from Monday to Saturday, 10 a.m. to 7 p.m. Featured brands from different categories will be highlighted weekly along with discounts that customers can enjoy until the end of the year. Among the current promos are: 60% off on luggage from brands like Samsonite, American Tourister, Kamiliant and High Sierra; buy one, get one deals from Samsonite’s Popsoda Collection and American Tourister’s Sky Park Collection; 50% off on all styles of Levi’s Footwear; 50% off on home brands including Tefal Cookware, Beka, Cuisinart, Oneida, Conair, Reisenthel and Aladdin; 30% off on all Champion and Hanes apparel; 50% off on select styles of Maidenform shapewear, with additional promos for singles bras at P800 off and a pack of two bras at P1,000 off; 30% off on all Spanx intimate apparel; 70% off on Jack Nicklaus items; 50% off on all styles of Anne Klein and Nine West Watches; 40% off on salon-grade hair tools from Babyliss and VS Sassoon, among many others.

Nivea offers holiday gift set

BELIEVING that gifts promoting wellness and care are needed for this unique holiday season, Nivea has released limited edition Holiday Gift Sets in time for the Christmas shopping season. These gifts show recipients that they deserve to feel good, without making a huge dent on your gift budget. Choose from five sets containing the best Nivea products and exclusive gift items. They are: the Nivea Care Essentials Set (P299) featuring Nivea Crème and Nivea Intensive Body Lotion; the Nivea Dreamy Fresh Face Set (P189) which contains the Nivea Micellair Face Cleanser and Nivea Whip Face Foam combo; the NiveaSmooth & Even Skin Set (P279) which contains Nivea Extra White Body and Deo Serums; the Nivea Fresh and Bright Set (P299) for men which consists of Nivea Men Black & White Fresh Deodorant and Nivea Men Whitening Acne Oil Control Face Scrub; and the NIVEA Fresh & Smooth Set (P299) for men, containing Nivea Men Deep Deodorant Spray and Nivea Men Créme. The Holiday Gift Packs are available online through the official Nivea stores on Lazada and Shopee, Nivea via Beauty MNL, or through at select Watsons, Puregold, Waltermart, Mercury Drug, Robinsons Supermarket and Department Stores, Landmark Department Store, Shopwise, Rustans Supermarket, Metro Gaisano, AllDay Supermarket, Landers, Ever Supermarket, South Supermarket, Cash & Carry, Unimart, and Merry Mart stores nationwide.

Yields on gov’t debt inch up on faster inflation print

December 7, 2020 | 12:01 am

YIELDS ON government securities (GS) inched up last week after the November inflation print jumped to a near two-year high.

GS yields — which move opposite to prices — rose by a week-on-week average of 3.9 basis points (bps), data from Philippine Dealing System’s website as of Dec. 4 showed.

Rates on benchmark tenors increased last Friday from week-ago levels, except for those on the 91- and 364-day Treasury bills (T-bills), which declined by 1.1 bps and 0.3 bp, respectively, to 1.12% and 1.701%.

Meanwhile, the yield on the 182-day T-bills edged up by 0.2 bp to 1.43%.

At the belly of the curve, yields on two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) rose by 4.5 bps (to 1.957%), 3.6 bps (2.226%), 1.9 bps (2.462%), 1.1 bps (2.650%), and 3 bps (2.868%), respectively.

At the long end, the 10-, 20-, and 25-year papers yielded 3.028%, 3.948%, and 3.961%, up by 8.7 bps, 9 bps, and 12.7 bps, respectively.

“Yields adjusted higher by 3-5 basis points on initial knee-jerk selling with the upside surprise in CPI,” ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said in an e-mail interview, referring to the consumer price index used to measure inflation.

“However, investors are discounting the print as transitory due to the recent typhoon and there was no follow through on the selling pressure with trading volumes staying relatively muted,” he added.

“At current levels, the market is essentially back to the levels it had been at prior to the most recent Bangko Sentral ng Pilipinas (BSP) policy cut in November,” Mr. Liboro said.

A bond trader said in a mobile phone message that recent developments on coronavirus vaccine candidates caused market players to shift to riskier assets such as equities.

“This puts upward pressure on bond yields, which are already at low levels, and is ripe for some profit taking,” the trader said.

Inflation quickened to a 21-month high of 3.3% last month from 2.5% in October and 1.3% in the same month last year amid faster upticks in the prices of heavily weighted food and non-alcoholic beverage items.

Inflation has averaged 2.5% so far this year, still within the BSP’s 2-4% target and the government’s updated 2.4-2.6% projection this year. However, this is higher than the central bank’s forecast of 2.4%.

BSP Governor Benjamin E. Diokno said on Friday that the increase in November inflation is “transitory” after the food supply disruptions caused by the recent typhoons that battered the country.

Mr. Liboro said the next local catalyst will be the seven-year bond auction — the last offering for the year — on Dec. 17.

“While the market has taken the upside CPI surprise calmly, we expect yields to gradually drift higher over the last few weeks for the year. We expect trading activity to remain relatively muted, barring any surprises, with more investors likely to trim positions further moving towards yearend,” he said.

Potential buying demand may surface if the central bank signals adjusting the reserve requirement ratio over the short term, Mr. Liboro added.

“For [this] week, we may see GS to trade sideways with an upward bias as the market will try to monitor statements from BSP and look for hints if another policy adjustment is within the horizon,” the trader said. — Michelle Anne P. Soliman

Vaccine news, regulatory approval of energy JV deal lift Ayala stocks

December 7, 2020 | 12:01 am

AYALA CORP. was among the most actively traded stocks last week, with traders and investors taking their cue from news of the country’s first supply agreement for a potential vaccine for the coronavirus disease 2019 (COVID-19) that lifted market sentiment as well as the Philippine Competition Commission’s (PCC) approval of the joint venture (JV) between Ayala-led subsidiary AC Energy Philippines, Inc. and the Philippine energy unit of Japan-based Marubeni Corp. that is looking to build a diesel-fired plant in Rizal province.

Data from the Philippine Stock Exchange showed a total of P1.46 billion worth of 1.73 million Ayala Corp. shares being exchanged between Dec. 1 and 4, making it the seventh most actively traded stock during the period.

Shares in the conglomerate closed P864.5 apiece last Friday, up five percent from a week ago. Year to date, the stock has gained 12.3%.

“Vaccines were the top news for the past two weeks that helped the market recover, especially Ayala Corp.,” Mercantile Securities Corp. Analyst Jeff Radley C. See said in an e-mail.

Mr. See also pointed to the PCC’s recent approval of the joint development of a diesel-fired plant in Rizal province between Ayala subsidiary AC Energy Philippines and Marubeni subsidiary Axia Power Holdings Philippines Corp., which he said encouraged investors to take positions on the stock last week.

RCBC Securities, Inc. Equity Analyst Daphne T. Yang noted in a separate email that the stock recovered after being sold down since Nov. 18.

“The stock fell from P865.50 to P823.50 over seven days, so bargain-hunting followed,” Ms. Yang said.

In a tripartite agreement between the government, the private sector, and the UK-based drugmaker AstraZeneca Plc last month, the Philippines secured around 2.6 million doses of COVID-19 vaccine with a ₱600-million donation from over 30 companies in the country. It is also in talks with other drugmakers.

The procured vaccines will be deployed by the Department of Health and administered to government frontline workers and private-sector employees. Two doses of the vaccine are expected to cost around P500 or $10.

Meanwhile, AC Energy told the bourse on Wednesday that the PCC approved the joint venture with Marubeni through Axia Power Holdings Philippines for a diesel-fired plant in Rizal, saying it will not substantially affect competition in the industry.

The company signed in July a shareholders’ deal with Axia, which will buy half of both shares and economic rights in Ingrid Power Holdings, Inc., the Ayala unit’s corporate vehicle for the 150-megawatt Ingrid diesel-fueled power plant project in Pililla, Rizal.

The plant is expected to supply peaking and reserve power to the Luzon grid by the first quarter of 2021.

“[Ayala Corp.] has been focusing more on its energy arm. They had been expanding its portfolio and increasing its exposure to renewable energy. Hopefully, we can see improvement on their financials next year,” Mercantile Securities’ Mr. See said.

Ayala logged a 58.9% decline in its attributable net income in the third quarter of the year to P3.42 billion from P8.32 billion in the same period last year. The decline was attributed to the double-digit drops in incomes from its core businesses, such as its property, banking, and telco segments.

For the coming weeks, Mr. See said Ayala stocks may move in a range between P800 and P880 apiece. — Marissa Mae M. Ramos

Caltex partners with PayMaya for contactless transactions

December 7, 2020 | 12:01 am

CALTEX, marketed by Chevron Philippines, Inc. (CPI), partners with digital financial services firm PayMaya for a safer cashless payment solution for customers purchasing fuel, lubricants, and other products and services in select Caltex stations nationwide.

Caltex now accepts credit, debit, and prepaid card payment options for Visa, Mastercard, and JCB cardholders, as well as e-wallet accounts such as PayMaya QR through the PayMaya One point-of-sale (POS) Android device.

CPI General Manager and Country Chairman Billy Liu said, “We continue to employ strict safety measures in all our retail stations as we transition to the ‘new normal.’ This initiative with PayMaya is one more way of showing that we value the safety of both our customers and frontline workers, as we continue to provide premium quality clean fuels from Caltex.”

PayMaya offers an end-to-end payment ecosystem solution for enterprises, consumers, government, and its agent network. For enterprises, it provides cashless convenience to millions of Filipinos “through its widest deployment of digital payments acceptance solutions to everyday merchants across the country.”

PayMaya President Shailesh Baidwan said, “As we enable the entire transportation chain with contactless payment solutions for the benefit of motorists and the riding public, petroleum providers like Caltex play a role in keeping everyone safe even while on the road. We are excited to work with Caltex in elevating the experience of their customers.”

On top of safety and convenience, motorists can also enjoy up to 100% “cash back” when they scan-to-pay using their PayMaya app at select Caltex stations. Robinson’s Rewards and MVP Rewards will also be integrated with PayMaya soon, allowing motorists to earn reward points that they can use for purchases. The PayMay facility will be rolled out to more Caltex stations in the future.

ADB survey: Most MSMEs ‘strongly wanted’ further government financial support

December 7, 2020 | 12:00 am

How PSEi member stocks performed — December 4, 2020

December 7, 2020 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Friday, December 4, 2020.

Shares to decline as prospects remain uncertain

December 6, 2020 | 11:10 pm

By Revin Mikhael D. Ochave, Reporter

PHILIPPINE SHARES are expected to decline this week as investors continue to absorb news on the country’s inflation rate and the upcoming release of other economic data.

The 30-member Philippine Stock Exchange index (PSEi) ended Friday’s trading at 7,134.56, lower by 59.57 points or 0.82% than the previous session.

Week on week, the main index rose 343.1 points or 5.05%, improving from the downward trend it logged in the previous trading week.

The market’s average value turnover dropped 40.76% to P9.73 billion, while net foreign selling eased 62.29% to P590 million.

“Optimism sprang anew from encouraging reports of vaccine availability next year, prodding the bulls to regain some buying momentum,” online brokerage 2TradeAsia.com said in a market note.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said he sees a downward trend for the local market in the upcoming trading week following faster-than-expected inflation in November.

“Investors are expected to look towards the upcoming economic data including our September foreign direct investments and October foreign trade for further clues on our economic condition,” Mr. Tantiangco said in a mobile phone message. “Our data are still conveying a challenged local economy as the recent typhoons aggravate our pandemic stricken situation.”

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said market movement may vary as investors will examine the latest inflation figure.

“Investors will be assessing whether the inflation was just because of (recent) typhoons and whether the Bangko Sentral ng Pilipinas (BSP) will continue cutting rates aggressively moving forward,” Mr. Limlingan said in a mobile phone message.

“Eyes will be on the December 17 meeting of the BSP’s Monetary Board. Another rate cut of the same degree will put policy rates below 2%,” 2TradeAsia.com said. “Not only will lower rates shore us business confidence as capital costs get reduced, the effect will be twofold for equities as this increases the appeal to switch from fixed income securities.”

Inflation quickened to a 21-month high of 3.3% last month from 2.5% in October and 1.3% in the same month last year amid faster upticks in the prices of heavily weighted food and non-alcoholic beverage items, data released on Friday showed.

Inflation has averaged 2.5% so far this year, still within the BSP’s 2-4% target and the government’s updated 2.4-2.6% projection this year. However, this is higher than the central bank’s forecast of 2.4%.

2TradeAsia.com said the market’s immediate support will be at 7,000 and resistance will range from 7,200 to 7,350.

“As we march on to the final weeks of the year, we may have to observe if investors are willing to hold the critical support at 7,000,” Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said.

Peso may strengthen on progress of stimulus bills

December 6, 2020 | 11:00 pm

THE PESO is expected to appreciate further against the US dollar this week in anticipation of developments on vaccines against coronavirus disease 2019 (COVID-19) and on pending stimulus bills.

The local unit inched up to P48.04 against the greenback on Friday from its P48.045 finish the day before, data from the Bankers Association of the Philippines showed.

Week on week, the peso strengthened by two centavos from its P48.06 finish on Nov. 27.

The peso’s sustained appreciation was supported by rising optimism over COVID-19 vaccine developments.

The local unit may strengthen further against the greenback can be seen this week on expectations that pending stimulus bills and with the P4.5-trillion budget for next year will gain final approval soon, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a mobile phone message.

Among these stimulus measures are the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE bill that seeks to cut corporate income tax and streamline tax perks and the Financial Institutions Strategic Transfer or FIST Act, which aims to create institutions where banks can offload their bad loans.

The two measures form part of the country’s recovery program as they give relief to the private sector hit hard by the pandemic.

Both bills have been passed by the Senate and the House of Representatives and are now awaiting for the approval of a Bicameral Conference Committee before they can be enacted by President Rodrigo R. Duterte.

Meanwhile, both chambers assured last week that the ratification of the 2021 P4.5-trillion budget can happen this week to prevent the government from operating on a reenacted spending plan while the economy recovers from the impact of the coronavirus pandemic.

Other possible catalysts include the expected increase in remittances sent by overseas Filipino workers ahead of the Christmas season and more positive news about the development of COVID-19 vaccines, Mr. Ricafort added.

Britain last week approved the COVID-19 vaccine developed by Pfizer, Inc. and its partner BioNTech which was seen 95% effective in preventing the illness, Reuters reported.

Meanwhile, the release of latest data on international trade should also provide some lift to the peso this week, said Ruben Carlo O. Asuncion, chief economist at the UnionBank of the Philippines, Inc.

The Philippine Statistics Authority (PSA) is set to release October international trade data on Thursday, Dec. 10.

Latest PSA data showed goods exports ended a six-month losing streak in September after growing by 2.2% to $6.22 billion. Meanwhile, goods imports remained in the red that month, falling by 16.5% to $7.92 billion. This brought the trade deficit to $1.71 billion.

In the 10 months to October, exports were down 14% to $45.87 billion and imports fell 26% to $61.95 billion, taking the year-to-date trade balance to a narrower $16.07-billion deficit.

For this week, Mr. Ricafort sees the peso moving between P47.90 and P48.15 against the greenback, while Mr. Asuncion expects it ranging from P47.85 to P48.15 per dollar. — B.M. Laforga

Barangay Ginebra takes a commanding 3-1 finals series lead

December 6, 2020 | 8:44 pm

By Michael Angelo S. Murillo, Senior Reporter

The Barangay Ginebra San Miguel Kings are one win away from bagging the PBA Philippine Cup title after they took a 3-1 lead over the TNT Tropang Giga in their best-of-seven finals series with a 98-88 victory in Game Four on Sunday at the Angeles University Foundation Sports Arena in Pampanga.

Steady in their attack on both on ends throughout the match, the Kings proved to be hard to crack for the hurting Tropang Giga once they had it going on their way to booking the win that now has them on the brink of a first Philippine Basketball Association All-Filipino title in more than a decade.

The contest had a defensive start, with the first quarter ending with Barangay Ginebra just up by three points, 17-14.

Offense picked up in the second frame and the teams went back-and-forth.

Barangay Ginebra held a 39-36 advantage at the 2:46 mark before it went on a 10-3 blast the rest of the way to extend its lead to double digits, 49-39, at halftime.

The Kings continued to pour it on to begin the third quarter, outscoring the Tropang Giga, 7-0, in the first two minutes to create further separation, 56-39.

TNT tried to claw their way back but Barangay Ginebra stood its ground, still in command, 65-48, at the halfway point of the frame.

The Kings continued to have a safe distance, 77-60, entering the fourth canto.

Seeing that the game was slipping from their grip, the Tropang Giga came out charging to begin the fourth, scoring two quick baskets, care of Poy Erram and Simon Enciso, to narrow the gap, 77-64, inside a minute.

They kept their push in the succeeding minutes to come even closer, 88-85, at the 2:50 mark.

But like what they had been doing all game long, the Kings would extricate themselves from the Tropang Giga.

LA Tenorio produced clutch treys to keep the Kings above water, 94-88, with 1:43 to go.

They added four more points to it after a minute to make it a 10-point cushion, 98-88.

No TNT comeback would happen from there, preserving the win for the Kings.

Mr. Tenorio shone for Barangay Ginebra with 22 points, six rebounds and three steals.

Japeth Aguilar also had 22 points, to go along with nine boards and two blocks.

Stanley Pringle had 16 points while Scottie Thompson finished with a near triple-double of 11 points, 11 rebounds and nine assists.

For TNT it was Roger Pogoy who led with a game-high 34 points, followed by Poy Erram with 19 points on top of 16 rebounds and two blocks.

The Tropang Giga played without Ray Parks Jr. for the third straight game while they lost veteran Jayson Castro in the third quarter of Game Four because of injury.

Barangay Ginebra can close out the series on Wednesday in Game Five at 6 p.m.

PEZA pursuing ‘township’ strategy for ecozones, upgrading worker skills

December 6, 2020 | 6:47 pm

THE Philippine Economic Zone Authority (PEZA) said it hopes to transform economic zones into “townships” that will become integrated centers for work, commerce, and homes, while also pursuing initiatives to make workers multi-skilled.

In a webinar on industrial market opportunities in Luzon, PEZA Director-General Charito B. Plaza said the agency’s overall goal is to make such zones the economic drivers of their respective regions, forming the core of future smart towns and digital cities across all the regions.

“PEZA’s priority project is to create different types of ecozones in every region, and to transform these ecozones into townships where industrial, commercial, and residential buildings are put as an integral part, so investors and workers can work, live, learn, and play in one area,” she said.

There are 408 operating ecozones nationwide, 74 of which focus on manufacturing. Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) has 35 manufacturing zones; second is Central Luzon, with 12. Ms. Plaza said these are preferred locations because of the presence of critical infrastructure, manpower, and local government unit support.

The number one demand for industrial locators is improved logistics, which are currently concentrated in the National Capital Region. The leading manufacturing sectors in the Luzon economic zones are electronics, metal, rubber, and plastic products, as well as real estate.

Real estate advisory firm PRIME Philippines expects the Cavite-Laguna-Batangas (Calaba) corridor to maintain its position as the center of production in Luzon, according to Francis Mina, head of research for the firm. It also sees North Luzon as a growing industrial hub, as well as new industrial parks being developed in Central Luzon — mostly in Pampanga.

Ongoing infrastructure projects in Luzon like the Tarlac-Pangasinan-La Union Expressway Extension, the Sangley International Airport, the Subic-Clark Railway, and the Marikina Vista Real Bridge will help address the need for infrastructure, Mr. Mina said.

Ms. Plaza said incentives need to remain competitive if the Philippines is to retain and attract locators.

“Export company investors say they’re here because the PEZA incentives compensate for the high cost of doing business in the country,” she said at the webinar. “This will change once the CREATE bill becomes a law.”

She was referring to the proposed Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), which the Senate passed in late November.

Current PEZA incentives are an Income Tax Holiday (ITH) of six to eight years for a pioneer project, or four to six years for a non-pioneer one. After the ITH, a special 5% tax on gross income earned less allowable deductions is given in lieu of all national and local taxes.

The CREATE bill will cut corporate income tax to 25% from the current 30%, with further reductions of one percentage point each year starting 2023 until it falls to 20% by 2027.

The Senate version allows for small firms with assets of up to P100 million and up to P5 million in net taxable income to avail of an expedited reduction to 20% this year. The measure seeks to reform the tax system and authorizes the Fiscal Incentives Review Board to create tailored incentive schemes.

She said logistics and transportation hubs, public works, and infrastructure are needed to make the country self-reliant, self-sustaining, and resource-generating.

“PEZA’s worldview is to think global, act local. We want to eradicate our import and consumption-driven dependency and become an export and production-driven economy,” Ms. Plaza added. — Patricia B. Mirasol