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BSP likely to keep dovish stance

By Luz Wendy T. Noble, Reporter

THE Philippine central bank would probably remain dovish and might cut benchmark interest rates again next month and in the next quarter as the recovery outlook remains uncertain, analysts said.

“If the pace of economic recovery continues to underperform official forecasts, as we expect in the near term, then policy rate cuts will be warranted,” Nomura Global Markets Research analysts Euben Paracuelles and Rangga Cipta said in a note.

Further cuts would likely come especially as inflation remains benign and stays within the target of the Bangko Sentral ng Pilipinas (BSP), whose monetary policy decisions continue to rely on data, they added.

“We reiterate our forecast that BSP will cut its policy rate by another 50 basis points (bps) to 1.5%, likely delivering 25 bps at its next monetary board meeting in December and then another 25 bps in the first quarter of 2021,” Mr. Paracuelles and Mr. Cipta said.

The central bank unexpectedly cut benchmark rates to a record on Thursday, citing the uncertainty caused by a fresh surge in coronavirus cases globally and recent typhoons on the struggling economy.

The economy shrank by 11.5% in the third quarter, bringing the total contraction in economic output for the three quarters to 10%.

Central bank Governor Benjamin E. Diokno also cited the continued contraction in domestic output and weak confidence among companies and households.

“The Monetary Board assessed that there remains a critical need for continuing policy support measures to bolster economic activity and boost market confidence,” he added.

The policy-making Monetary Board has slashed 200 bps from key interest rates this year to support the virus-stricken economy. This brought the overnight reverse repurchase, lending, and deposit facilities to new record lows of 2%, 2.5%, and 1.5% respectively.

The BSP expects inflation to average at 2.4% this year and at 2.7% next year, well within its 2-4% target.

Despite rate cuts this year, lending growth eased to 2.8% in September, the slowest in more than 13 years, as banks tightened their credit standards while borrowers’ confidence remained low.

“The benchmark overnight reverse repurchase rate is unlikely to be the only tool the BSP will utilize,” Sophia Ng, an analyst at Mitsubishi UFJ Global Markets Research, said in a separate note on Friday.

The central bank stands ready to “deploy the full arsenal of tools” as needed, she said, citing Mr. Diokno.

SLOW PACE
The central bank might also further cut the reserve requirement ratio for banks or may do another tranche of lending to the National Government, Ms. Ng said.

She said the Philippines is unlikely to get vaccines for the coronavirus in the first half of next year, which could lead to a slow recovery as restrictions remain in place.

The Monetary Board is authorized to cut the reserve ratio by as much as 400 bps this year. It has slashed the ratio by 200 bps for big banks to 12%, and by 1% for thrift and rural banks to 3% and 2%, respectively.

Meanwhile, the slow pace of fiscal stimulus measures from the government is a major concern and may force the central bank to cut rates further, ANZ Research Chief Economist for Southeast Asia and India Sanjay Mathur and economist Kanika Bhatnagar said.

“We do not rule out further rate cuts next year,” they said in a note. “Even so, in our view its efficacy will be limited by weak transmission.”

Fiscal measures from the Philippine government are equivalent to 3.9% of the gross domestic product (GDP), according to the policy tracker of the International Monetary Fund.

Fiscal responses from its neighbors are bigger including Malaysia at 5% of GDP, Thailand at 9.6%, Vietnam at 4.2% and Indonesia at 4.4%.

Congress passed a law in March to provide P275 billion in stimulus funds to sectors affected by the pandemic.

It allotted another P165.5 billion in a follow-up law in response to the crisis. The law also allowed the central bank to advance as much as P850 billion to the National Government at zero percent interest.

Lawmakers are also trying to fast-track the approval of the P4.5-trillion national budget for next year as it battles the COVID-19 pandemic.

Blue chips’ 2020 profits may fall deeper after Q3 upset

By Denise A. Valdez, Senior Reporter

EARNINGS of blue-chip stocks may fall deeper this year as third-quarter earnings results came in weaker than expected due to quarantine measures meant to contain a coronavirus pandemic.

The reporting season for corporate earnings ended last week, and the 30 members of the Philippine Stock Exchange index (PSEi) posted an aggregate profit decline of 38% in the third quarter, based on data from Philippine National Bank (PNB).

This was better than the previous quarter’s 59% year-on-year drop, but resulted in a 52% slump in earnings for the nine months through September.

“Although the slower decline in the third quarter was expected, the magnitude of the improvement was lower than our expectations,” PNB Vice-President and Head of Equity Research Alvin Joseph A. Arogo said in a Nov. 20 e-mail to BusinessWorld.

The lender’s full-year forecast was a 34% year-on-year decline for the aggregate earnings of PSEi members.

“This will be revised down given that the total nine-month  decline was 52% year on year,” Mr. Arogo said. “Earnings growth in the fourth quarter is unlikely given the slower-than- expected recovery in the economy.”

Philippine economic output fell by 11.5% in the third quarter, resulting in a year-to-date contraction of 10%.

Earnings weakened in the third quarter after the capital region and nearby provinces reverted to a stricter lockdown after a fresh surge in infections in August, breaking the recovery momentum.

Government spending growth also slowed to 5.8% last quarter from 21.8% in the second quarter, Mr. Arogo said.

Some sectors managed to perform better or on par with expectations, Christopher John Mangun, research head at AAA Southeast Equities, Inc. said in an e-mailed reply to questions.

“Bank earnings came in better than expected as revenues are at their highs,” he said. “The reduction in net income was only due to added buffers for potential bad loans.”

Mr. Mangun also said property earnings were 50-70% lower year on year, but almost double the level in the previous quarter.

He now expects full-year earnings to slump by 50-60% from a year earlier, with fourth- quarter earnings improving by as much as 40% from the previous quarter.

“The PSEi is currently up 22% since the beginning of the fourth quarter, recovering all its losses from the drop that we saw back in March,” Mr. Mangun said. “We may see it climb further towards the end of the year.”

Mr. Arogo expects corporate earnings to start posting growth next year as the economy recovers from the crisis.

“Key factors that will drive earnings growth next year are containment of new virus cases, which would allow consumers and businesses to spend even without a vaccine, as well as timely and meaningful government spending,” he added.

Among PSEi members, those that will drive recovery next year are companies that made the biggest adjustments to new trends, such as going online and improving logistics, Mr. Mangun said.

Companies in the retail and manufacturing sectors might continue to lag, along with those that rely heavily on exports, he added.

“Our economy is consumer-based,” Mr. Mangun said. “We need to see a pickup in spending from consumers as well as the government, which is highly possible as consumers gain confidence that the risks of the pandemic are gone and it is OK to spend again.”

He expects government spending to pick up next year after the national budget was increased to P4.5 trillion to fund more infrastructure projects and boost state response to the pandemic.

The PSEi closed at 7,169.79 on Friday, its highest finish since February after gaining 2.46% or 172.17 points from the previous session.

Gov’t told to expand digital tax foothold

THE government should look at digital payment systems that can cover cross-border transactions to widen its digital tax base, according to the National Tax Research Center (NTRC).

Long-standing issues such as poor internet connection and the lack of infrastructure should also be addressed, the state think tank said in a recent study.

The center urged the country’s tax agencies to maximize the use of digital payment systems because they are proven to be an effective tool to make online transactions more efficient. Faster tax collection could also help the country’s economic recovery, it added.

“Many countries have already adopted a progressive movement of taxing digital transactions to capture the fast-growing digital economy and level the playing field,” according to the study.

“Payment systems have the potential to help tax authorities in monitoring tax compliance and enforcing tax rules,”  it added.

The Finance department in May said it would study how to plug potential value-added tax (VAT) leakages on goods and services sold online, including cross-border transactions. House Bill 6765 or the Digital Economy Taxation Act was filed seeking to impose a 12% VAT on online transactions.

Aside from the public’s lukewarm attitude toward digital payments and the lack of a reliable and secure payment infrastructure, there’s also a need to ensure the efficient implementation of payment systems involving cross-border online transactions, the NTRC said.

The adoption of digital payments has been slow because many Filipinos think cash is still the fastest and safest way to pay, the agency said, citing past studies.

It said most countries that impose VAT or its equivalent on cross-border digital services do not require foreign companies to establish a physical office in the country where they sell, though some do have a representative office.

The Bureau of Internal Revenue issued a memo in June reminding online businesses to register with the agency for tax purposes. More than 7,000 businesses have registered as of the Sept. 30 deadline.

“During the COVID-19 pandemic, the digital transformation of BIR’s digital services has become crucial to ensure the safety of taxpayers from the threat of the virus,” it said.

“With lower revenue expectations due to the COVID-19 pandemic, the increased use of digital technologies along with strong macroeconomic fundamentals can help the government quickly return to high growth once the health crisis is over,” it added.

Tax revenues dropped by 11.28% to P1.854 trillion in the nine months through September due to weak consumer spending and business closures during the pandemic.

The tax agency also aims to start the pilot of its electronic receipts and e-invoicing system next year.

Online payment transactions of the government accounted for 59% of 472 million digital payments done, while individuals and businesses accounted for 9% and 4%, respectively, the NTRC said, citing estimates by the Better than Cash Alliance last year.

Total digital payments remained low, accounting for only 8% of the total monthly volume of payments made nationwide.

The center said there were 98 operators of payment systems registered with the Philippine central bank, while 25 others have provisional licenses. — Beatrice M. Laforga

Moody’s cites country’s strong growth outlook

By Luz Wendy T. Noble, Reporter

THE country’s midterm growth potential remains strong amid a coronavirus pandemic, and good fundamentals continue to guard its credit rating and outlook, according to Moody’s Investors Service.

But remittances and investments could be hit if the government fails to contain infections, Christian de Guzman, senior vice-president of Sovereign Risk Group at Moody’s, told BusinessWorld via Zoom Cloud Meetings last week.

“We don’t necessarily think that there is going to be a structural downshift in growth, assuming that there will be a degree of normalization and a resolution to the pandemic starting next year,” he said.

The global credit watcher affirmed its Baa2 rating and stable outlook for the Philippines in July, saying the country’s strong fiscal position would shield it from the health crisis.

Moody’s expects the Philippine economy to slump by 7% this year before bouncing back with a 6.8% growth next year.

The government expects economic output to shrink by 4.5% to 6.6 this year and grow by 6.5% to 7.5% next year.

Mr. De Guzman said economic weak points remain, such as the tourism sector, though border restrictions around the world won’t cause as much damage compared with its neighbors in the region.

“There is a bit of nuance because compared with Thailand and the region, the nature of travel and tourism in the Philippines is more domestic than international,” he said.

Some destinations in the Philippines such as Boracay, Tagaytay, Baguio and Palawan started to welcome local tourists last month, provided they come from areas of the country under a relaxed community quarantine.

Tourist numbers are also limited and they must comply with minimum safety standards.

Mr. De Guzman said remittances and investment flows would depend on travel restrictions in both source and destination countries.

He cited Singapore and Hong Kong’s travel bubble after they allowed their citizens to travel between them without the need for quarantines because both have managed to control the virus.

A government failure to control coronavirus infections “could very well affect the deployment of overseas Filipino workers, which can then affect the remittance inflows down the road,” Mr. De Guzman said.

Cash remittances rebounded with a 9.3% growth to $2.601 billion in September from a year earlier, but inflows for the 10 months were still down by 1.4% to $22.187 billion, according to data from the Philippine central bank.

Foreign direct investments (FDI) will also depend on travel restrictions since some transactions require investors to physically come here.

FDIs grew for a fourth straight month in August due to renewed investor confidence despite the pandemic, the central bank said this month.

Net inflows climbed by 46.9% to $637 million in August from a year earlier. For the eight months through August, FDI inflows dropped by 5.6% to $4.432 billion from last year.

The Philippines would continue to be on a “better footing” than many of its Baa2-rated peers despite risks to growth, Mr. De Guzman said, citing the country’s improved fiscal position in the past decade and its strong banking system.

“We understand that the country’s debt will rise, effectively erasing some of the gains that were made over the past decade,” he said. “But we are viewing this as a cyclical shock.”

Seiko watch inspired by Tubbataha

PHILIPPINE-EDITION Prospex watch, SRPF33K1

A VERY specific wish for a watch had been fulfilled with the release of a new line of Seiko’s Prospex diver’s watches. We’re talking about a limited Philippine edition.

The watch was launched early this month via Facebook Live, in an event hosted by athlete and host Marc Nelson. It was launched alongside a 55th anniversary edition (the first Seiko diver’s watch was released in 1965).

The Philippine-edition Prospex watch was codenamed SRPF33K1 and limited to only 1,000 pieces. It has a 42.4mm stainless steel case, with Seiko’s caliber 4R36 automatic movement with manual winding capacity. The power reserve is approximately 41 hours and it is water resistant up to 200 meters. It comes with a Day/Date display, stop second hand function, glowing Lumibrite on the hands and indexes; all sitting atop a blue IP dial and yellow gradation dial. It comes with a two-tone stainless steel band with an extra silicone blue band that will be placed inside a special box engraved with limited edition numbers and the words “Philippine Limited Edition).”

As a diver’s watch, of course it would have a touch of marine influence, but as Yoshikatsu Kawada, Director and Senior Vice-President for Seiko Japan, noted, “Seiko Corp. recognizes the Philippines as one of the best diving destinations in the world. It is for this reason that we have created the first Philippine Prospex Limited Edition, inspired by the Philippines’ beautiful treasure, Tubbataha Reef.” The coral reef has indeed been rated many times by magazines as one of the world’s best, and also has the distinction of being considered a World Heritage Site by UNESCO.

As such, Karl Dy, President of Timeplus Corp. (which distributes Seiko watches in the country) pledged that a certain amount from the proceeds from the sales of the limited edition Prospex will go towards protecting the reef. “The design is a collaboration between Seiko Watch Corp. of Japan and Seiko Philippines,” said Mr. Dy.

“Seiko Watch Corp. and Seiko Philippines had met several times to discuss the design of the watch. It took about a month to finalize but it was well worth it,” said Mr. Dy in an e-mail to BusinessWorld, asked about how long it took to plan the watch’s release. “Seiko Philippines was always hoping for a limited edition since other countries already released their own years ago. Seiko Watch Corp. also acknowledges the Philippines as one of its important markets; that is why the idea was quickly implemented and prioritized.

“I think the Philippines is overdue in having its own Philippine limited edition. Seiko Watch Corp. was thinking of the perfect time to launch it and thought that it would do well to coincide with the Tokyo Olympics. Obviously, the situation with COVID-19 (coronavirus disease 2019) was unexpected but we are so thankful to the Filipino community for embracing our very first Seiko limited edition,” said Mr. Dy.

Seiko is not averse to fulfilling wishes. Mr. Kawada discussed a letter the company received in 1968, three years after the release of the first Prospex. In it, a diver said that no diver’s watch in the market could withstand a saturated diving system in depths greater than 300m. “Answering the request, Seiko established a new development team,” said Mr. Kawada. Of course, he was very proud to say that in 1975, they managed to go above and beyond the diver’s request, and released a watch that could work in depths of 600m.

“‘Keep moving forward’ is exactly the expression that explains both the will of the people who have been wearing Prospex, and who keep making Prospex watches,” he said.

The Philippine-edition Prospex watch is priced at P29,000 and will only be available at Official Seiko Boutiques and Authorized Dealers. For more details, visit seikowatches.com/ph-en or Seiko Philippines on Facebook and @seikophilippines on Instagram. You may also shop directly at shop.seikoboutique.com.ph. — Joseph L. Garcia

Cavite sees ‘signs’ to seal JV for Sangley airport

By Arjay L. Balinbin, Senior Reporter

THE Cavite government sees “signs” that it will finally seal a joint venture (JV) agreement by Nov. 24 with MacroAsia Corp. and its partner China Communications Construction Co. Ltd. (CCCC) for the $10-billion Sangley Point International Airport project.

“November 24 is the last day for the partners to enter into a joint venture agreement. We have given them an extendable deadline, so we will know then. But all signs point that they will sign the agreement before that,” Cavite Gov. Juanito Victor “Jonvic” C. Remulla told BusinessWorld in a recent phone interview.

Mr. Remulla stressed he is optimistic that the airport project will push through.

Jesse R. Grepo, Cavite’s public-private partnership selection committee legal officer, said on Sept. 24 that the Lucio C. Tan-led MacroAsia and its partner CCCC were given another 90 days to complete their post-qualification requirements for the airport project, after they missed the Sept. 9 deadline.

“The consortium was able to make partial submission of documents as required by Notice of Award. However, considering the continuing adverse impact of Covid-19 (coronavirus disease 2019) and in the exigency of service, the request for extension of 90 days immediately after air travel resumes between China and the Philippines to comply with all the conditions of the Notice of Award is granted,” Mr. Grepo said in a mobile phone message.

He said the extension was granted because of the “firm commitment” of the consortium to fully comply with the requirements on or before the new deadline.

MacroAsia said in a recent disclosure to the stock exchange that among the documents it had already submitted was the “newly and fully authenticated copy” of the joint venture proposal.

The post-qualification documents were supposed to be completed and submitted 60 days after the group received the notice of award in February.

Cavite had initially given the consortium until June to process and submit the documents before a joint venture development agreement could be signed.

The groundbreaking for the first phase of the airport project was initially expected to take place in the second quarter of the year.

The first phase of the project, which will cost $4 billion, includes the construction of the Sangley connector road and a bridge to connect the Kawit segment of the Manila-Cavite Expressway to the airport.

Phase 1 also involves the construction of the airport’s first runway.

The airport is rated at 25 million passengers yearly, and is intended to help decongest the Ninoy Aquino International Airport.

It is expected to be fully operational by 2023, with partial operations to start a year earlier. The fourth runway will be opened after six years.

The same consortium will work on the other two phases of the airport project, but there may be contract renegotiations, according to the Cavite government.

The second phase, which will cost about $6 billion, involves the construction of two more runways, giving the airport an annual capacity of 75 million passengers.

The last phase is the expansion to four runways, bringing capacity to 130 million passengers.

MacroAsia incurred losses of P269.44 million in the third quarter, a reversal of its profits a year ago, as the group’s core business segments “continue to be impacted by the downturn in air travel due to COVID-19-related quarantine and airport restrictions from March 2020 onwards,” the company said in a recent stock exchange disclosure.

In the same quarter last year, MacroAsia recorded an attributable net income of P300.05 million.

LVxNBA capsule collection now available in the country

LOUIS VUITTON and the National Basketball Association (NBA) recently partnered on a capsule collection which is now available at the LV Greenbelt 4 branch in Makati City.

Done under the artistic direction of American Louis Vuitton designer Virgil Abloh, the LVxNBA collection is “motivated by the exchange between French craftsmanship and American sports.”

For the line, Mr. Abloh created a limited clothing and accessories collection which he is described as uniting the emblems of the two renowned institutions.

The collection adapts the designer’s codes with the visual images of the basketball world, and honors the values of relatability and inclusion which Mr. Abloh has been underscoring since joining Louis Vuitton as artistic director for men’s wear in 2018.

Taking its cue from a player’s wardrobe, the collection captures three main dress codes: travels and transits are represented in a grey cashmere tracksuit adorned with graphics informed by the lines of a basketball; game arrivals manifest in a blue hooded leather jacket, Monogram jeans and T-shirts; and the press conference dress code is expressed in suits and a dress shirt.

Among the prominent features here is how the NBA logo is employed in an infinite houndstooth pattern used in tailoring, shirting and a tie.

Multi-functional bags draw on the red, blue, and white colors of the NBA logo. The collection sees the debut of a multi-pocket backpack in LV’s classic Monogram pattern with white contrast straps as a nod to the graphics associated with the game.

Shoes meld the insignia of Louis Vuitton and NBA in classic loafers, chunky-soled leather derbies, slip-ons, and in lace-up leather boots fused with components from existing sneakers; each recognizable by the new LVxNBA emblem embossed on the foot-bed.

Fashion jewelry have NBA logos as pendants, highlighting the meshing of sports and craftsmanship.

“Fashion muses aren’t predictable. Ideas of luxury can be found in the sports world and its champions as much as in traditional forms of artistry. This collection celebrates the cultural contribution of basketball and its diverse characters, and the idea of relatability as a force of unity today,” said Mr. Abloh of the collection in a statement. — Michael Angelo S. Murillo

AC Energy readies sale of stake in Bataan and Mindanao power projects

AYALA-LED AC Energy, Inc. plans to sell its investments in coal-fired power plant projects in Bataan and Lanao del Norte in line with its goal to generate more than half of its energy output from renewables by 2025.

Eric T. Francia, AC Energy president and chief executive officer, said the company had completed the transfer of all onshore Philippine assets to publicly listed subsidiary AC Energy Philippines, Inc., or ACEN, except for these projects.

“Ang hindi lang in-infuse na Philippine assets ng AC Energy, Inc. is the GNPower plants, both Mindanao, Kauswagan; and ‘yung AA thermal, ‘yung Dinginin and tsaka Mariveles,” he told reporters in an online briefing.

(The Philippine assets of AC Energy, Inc. that were not infused are the GNPower plants, both the one in Kauswagan, Mindanao, and those under AA Thermal, Inc.—the projects in Dinginin and Mariveles.)

GNPower Kauswagan Ltd. Co. is building a four-unit, “clean”, coal-fired power plant, each with an identical capacity of 138 megawatts (MW) or a total of 552 MW in Kauswagan, Lanao del Norte.

AC Energy has a stake in the 632-MW GNPower Mariveles Coal Plant Ltd. Co. and in the 668-MW supercritical coal-fired plant GNPower Dinginin Ltd. Co. AA Thermal holds AC Energy’s interests in the Mariveles and Dinginin projects.

AC Energy, whose change of name to AC Energy and Infrastructure Corp. (ACEIC) was approved by the Securities and Exchange Commission on Nov. 18, is the holding firm for ACEN’s energy platform.

“‘Yung naiwan kay ACEIC because we have plans of divesting those coal plants… We didn’t feel the need to infuse those large coal plants in ACEN,” Mr. Francia said.

He earlier said that ACEN would need around $1.8 billion to $2 billion to help it realize that vision. He said that the company would undergo corporate restructuring in the next couple of years, and that ACEN would seek to raise funds of $500 million to $600 million as growth capital to add to its $700 million cash reserves.

The company aspires to exceed 5 gigawatts of attributable capacity and generate at least 50% of energy from renewables by 2025.

On Friday, shares in ACEN rose by 11.96% to close at P5.80 apiece. — Angelica Y. Yang

Lush Prize aims to stop animal testing

LUSH is a beauty brand that prides itself on being cruelty-free by not testing its products on animals, and now it is giving prizes to anyone with ideas on how to stop the practice. This is because, as a company release says, “Every year, it is estimated that more than 115 million animals are used in testing laboratories around the world.”

Earlier this month, Lush awarded the £250,000 Lush Prize (P16,022,500 at an exchange rate of P64.09 = £1), the largest prize fund in the non-animal testing sector. There are nine winning projects, organizations, and scientists from seven countries, as well as a winner of the Andrew Tyler Award. The winners share the total prize fund.

Several projects won for finding ways of testing and assessing chemicals and molecules without having to use animals in the process. The MIE Atlas Team from Cambridge University/Unilever in the UK, presented a study called “In Silico Models to Predict Human Molecular Initiating Events.” Edoardo Carnesecchi, from Utrecht University’s Institute for Risk Assessment Sciences (IRAS) in the Netherlands won for an innovative software platform to assess chemical mixtures’ toxicity and exposure, while Domenico Gadaleta from the Computational Toxicology Unit — Mario Negri Institute for Pharmacological Research in Italy won for the study “Screening Based on Structure-Activity Relationships Predicting Molecular Initiating Events of Neurotoxicity.”

Other projects won for lobbying, public awareness, and training. The Environment and Animal Society of Taiwan (EAST), won for a lobbying project which aims to erase mandatory animal testing requirements and prioritising non-animal testing methods in the chemical registration process. Meanwhile, SOKO Tierschutz in Germany won for an undercover investigation at the Laboratory of Pharmacology and Toxicology in Mienenbuettel, Germany. Helpathon from the Netherlands won for its “innovative brainstorming sessions to help scientists who currently use animals explore new approaches,” according to the Lush Prize Instagram account.

The rest of the winning projects took a look at biology. Nadine Dreser from the University of Konstanz, Germany won for a project about early neurodevelopmental disturbances during sensitive periods of stem cell differentiation. Dr. Johana Nyffeler, from the US Environmental Protection Agency, presented a study on “High-throughput phenotypic profiling of human neural progenitor cells to identify putative modes-of-action of developmental neurotoxicants.” Dr. Yuan Pang from Tsinghua University, China won for the project “Construction of advanced in-vitro tissue models based on 3D bioprinting and their application in drug discovery and toxicity tests.”

Andrew Rowan, PhD took home the Andrew Tyler Award, a nonfinancial prize, for oustanding contributions to ending animal testing. Mr. Rowan is President of Wellbeing International, and was the former CEO of Humane Society International. He has also served on the committees of several animal protection groups, including the World Society for the Protection of Animals.

“The judges were particularly excited by the fact that this year’s shortlist contained a new wave of projects which were modelling the cellular pathways of toxic molecules in their datasets. This combination of 21st century technologies showed perhaps the greatest promise yet for a widespread replacement of older and less reliable animal models on a global scale,” said Rob Harrison, Lush Prize Director.

In the Philippines, Lush is exclusively distributed by Stores Specialists, Inc. — JL Garcia

SMC vows stricter measures after Skyway accident

SAN MIGUEL Corp. (SMC) President and Chief Operating Officer Ramon S. Ang on Sunday said the company and its contractor EEI Corp. will be implementing “stricter” safety measures at the  Skyway Extension project site after an accident that resulted in one fatality and four injuries.

Mr. Ang “vowed that the incident will be investigated thoroughly, and that SMC and its contractor EEI will make sure even stricter measures are in place at the project site,” SMC said in an e-mailed statement.

A steel girder from the project fell on six vehicles, killing one person and hurting four others, at the East Service Road, Cupang in Muntinlupa City on Saturday morning, according to the company.

“To the family, I can only offer my sincerest and deepest condolences, and my personal assurance that your family will be taken care of. To those who were injured, please be assured we will provide all the means necessary for you to recover and restart,” Mr. Ang said.

The company announced on Saturday its new deadline for the P10-billion project because of the accident.

“From the December 2020 deadline, target completion is now February 2021,” it said.

The project aims to extend the Skyway from Susana Heights on the South Luzon Expressway to Sucat and back and provide direct access to the elevated section of the Skyway. Construction of the four-kilometer elevated viaduct started in June last year.

Once fully completed, the project’s three new northbound lanes will be able to accommodate an additional 4,500 vehicles per hour. The two additional southbound lanes will be able accommodate an additional 3,000 vehicles per hour. — Arjay L. Balinbin 

SRP imposed on more meat, vegetable products

wet market meat section
BW FILE PHOTO

THE Department of Agriculture (DA) said it has expanded the list of basic commodities subject to a suggested retail price (SRP), including more types of meat and vegetables following the series of late-year typhoons that hit the Philippines.

In an administrative circular, Agriculture Secretary William D. Dar issued the new price-control list applicable to wet markets and supermarkets in the National Capital Region.

“These events have resulted in the tightening of supply, resulting in the declaration of a state of calamity in Luzon,” Mr. Dar said.

“In order not to aggravate the current difficulties of the Filipino people who are affected by the COVID-19 pandemic and the series of calamities, there is a need to manage prices for basic necessities in the market,” he added.

The government is authorized by law to cap prices during emergency periods.

The price caps are listed as follows:

Beef rump – P380 per kilogram

Beef brisket – P300 per kilogram

Ampalaya (Bitter gourd) – P80 per kilogram

Sitaw (String beans) – P80 per kilogram

Native pechay (Chinese hit cabbage) – P80 per kilogram

Squash – P30 per kilogram

Eggplant – P60 per kilogram

Tomato – P100 per kilogram

Cabbage (Scorpio) – P60 per kilogram

Carrots – P80 per kilogram

Baguio beans – P100 per kilogram

White potato – P70 per kilogram

Baguio pechay – P60 per kilogram

Chayote – P30 per kilogram

The DA derives its pricing authority over agricultural goods from Republic Act No. 7581 or the Price Act.

The DA and other government agencies recently implemented a price freeze on selected agricultural and fishery commodities after President Rodrigo R. Duterte placed Luzon under a state of calamity due to the effects of typhoons Quinta, Rolly, and Ulysses.

Some of the products covered by the price freeze include milkfish, tilapia, sugar, pork, and chicken, among others. — Revin Mikhael D. Ochave

T-bill rates seen moving sideways

RATES OF the Treasury bills (T-bills) on offer this week may inch down or remain unchanged on the back of high liquidity among investors and the central bank’s latest rate cut.

The Bureau of the Treasury (BTr) will offer P20 billion in T-bills on Monday: P5 billion each in 91-day and 182-day papers and P10 billion in 364-day securities.

A trader said T-bill yields may remain unchanged or move sideways on the back of strong liquidity in the financial system.

“There is still ample liquidity in the market. While inflation grew at a faster rate in October, it remained benign and within the government’s target for this year,” the trader said in an e-mail.

“The interest rates from the central bank could encourage more demand for short-term debt, especially for the 91-day tenor as investors are still waiting for better indicators of economic growth,” the trader added.

Another trader said T-bill rates may continue to decline slightly as investors prefer shorter tenors amid an uncertain economic environment, with coronavirus cases rising anew around the world.

“Investors will continue to park their excess cash on T-bills amid the low-interest environment and lack of better economic outlooks,” the second trader said in an e-mail.

The Treasury last week increased its award of T-bills as yields mostly declined on the back of strong liquidity and as investors continued to favor short-dated debt.

The BTr borrowed P22 billion via the T-bills it auctioned off on Monday, more than the programmed P20 billion, as the offer was over four times oversubscribed, with bids amounting to P80.407 billion.

Broken down, the BTr awarded P7 billion in 91-day papers, higher than the P5-billion program, as tenders reached P24.631 billion. The three-month debt fetched an average rate of 1.019%, down by 0.5 bp from the 1.024% seen in the previous auction.

The government accepted more bids from non-competitive investors for the three-month securities to take advantage of the lower average yield.

Meanwhile, the Treasury awarded P5 billion in 182-day T-bills as planned as bids for the tenor amounted to P22.246 billion. The six-month papers were quoted at an average rate of 1.443%, 1 basis point (bp) lower than the 1.453% logged in the previous offering.

Lastly, the government borrowed the programmed P10 billion via 364-day T-bills as tenders reached P33.53 billion. The average rate of the one-year securities was steady at 1.745%.

At the secondary market on Friday, the 91-day, 182-day and 364-day T-bills were quoted at 1.084%, 1.429% and 1.758%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Inflation rose to its fastest pace in three months in October, the government reported earlier this month.

Preliminary data from the Philippine Statistics Authority showed headline inflation at 2.5% in October, picking up from the 2.3% pace the month before.

The October inflation result marked the fastest pace in three months or since the 2.7% reading in July 2020.

Year to date, inflation settled at 2.5%, still within the central bank’s 2-4% target this year.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) unexpectedly cut benchmark rates to new record lows on Thursday, the fifth reduction this year, citing the continued uncertainty caused by a fresh surge in coronavirus cases globally and the impact of recent typhoons on the struggling economy.

The Monetary Board on Thursday trimmed the rates on the BSP’s overnight reverse repurchase, lending, and deposit facilities by 25 bps to 2%, 2.5%, and 1.5%, respectively. 

The latest easing move followed a “prudent pause” by the central bank since its June meeting. The central bank has already cumulatively lowered interest rates. The central bank also upgraded its inflation forecast this year to 2.4% from the 2.3% it gave in the October meeting.

On the other hand, the inflation outlook for 2021 and 2022 were lowered to 2.7% (from 2.8%) and 2.9% (from 3%), respectively, due to the slower-than-expected pickup in domestic activity, the decline in global crude oil prices, and the strengthening of the peso.

The Treasury plans to borrow P140 billion from the domestic market this month: P80 billion in weekly T-bill auctions and P60 billion in fortnightly Treasury bond auctions.

It is also offering another tranche of Premyo bonds to raise at least P3 billion. The offer period is set to run from Nov. 11 to Dec. 18.

The government wants to raise around P3 trillion this year from local and foreign lenders to help fund its budget deficit, which is expected to hit 9.6% of the country’s gross domestic product. — KKTJ

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