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Heavy rains slow European Union winter crop sowings, disrupt maize harvest

LONDON — Heavy rains have delayed grain sowings in parts of the European Union with the situation particularly severe in Britain where they could trigger a significant shift to spring planted crops.

The rains have also disrupted the harvesting of maize and sugar beet, adding to the challenge faced by farmers who are trying to get winter crops planted.

“Overall it is estimated that wheat plantings are just about 40-50% complete in the UK. We still have a bit of time but the weather forecast is far from ideal,” said Ben Bodart, Director at CRM AgriCommodities.

Bodart noted the last time that Britain had significant planting issues was for the 2013/14 campaign when the final wheat area fell by nearly 19%.

UK wheat futures on ICE have been rising sharply for 2020/21 crop positions with the Nov. 2020 contract climbing to a peak of 160.00 pounds a ton on Thursday, up 10% from a month earlier.

“Some farmers are already considering rolling their 2019 harvest over to sell it next season,” Bodart said.

In France, winter barley is most at risk of losing area because of its earlier planting period compared with wheat.

However, the main threat from rain was to the ongoing maize harvest, with potential for disease in late-gathered crop, analysts and traders said.

“The rain has hampered winter barley sowing quite a bit in France and the UK, and there will be some sowing intentions that won’t be fulfilled,” Benoit Fayaud of crop analysts Strategie Grains said.

“It’s also slowing soft wheat sowing but there’s a longer window than for winter barley.”

French farmers had sown 67% of the expected soft wheat area as of Nov. 4, with sowing now eight days behind the average of the past five years, according to farming agency FranceAgriMer. Winter barley sowing was 81% complete and also eight days behind the five-year average.

German winter grains sowings have also been delayed.

“It is the winter grain sowings on the harvested maize and sugar fields which are being delayed, earlier sowings went very well,” one German grains analyst said.

“Currently it is not a very serious problem but it is making estimates of the winter wheat planted area for next summer’s crop difficult as we do not know if some farmers will be compelled to move to planting more spring grains.”

Poland also had a rainy autumn, but with enough sunny days allowing farmers to sow winter crops, said Wojtek Sabaranski of analysts Sparks Polska.

“Polish farmers have generally managed to plant winter crops in a timely manner,” Sabaranski said. “Warm weather helped establish winter crops already sown and enabled maize harvesting to run at a pretty good pace.” — Reuters

Porsche introduces new Taycan sports sedan in Barcelona

By Manny N. de los Reyes

FUTURISTIC VISIONS of supercars zooming along highways without consuming a drop of fossil-based fuel is happening — right now. This future is today as Porsche introduces its latest model lineup — the fully electric Porsche Taycan — to its global dealer network during an event held recently in Barcelona, Spain. And because a Porsche event is never complete without including the firsthand experience of driving, guests were able to put the Taycan through its paces on the iconic racetrack of Catalunya — the home circuit of the Spanish Grand Prix.

The Taycan is no mere concept car. In fact, the dealer launch program, themed as “Soul Electrified,” presented Porsche’s first fully electric vehicle in preparation for its much-anticipated arrival in various markets next year. Included among these markets is the Philippines.

“We promised a true Porsche for the age of electromobility — a fascinating sports car that not only excites in terms of its technology and driving dynamics, but also sparks a passion in people all over the world, just like its legendary predecessors have done. Now we are delivering on this promise,” said Michael Steiner, member of the Executive Board of Porsche AG — Research and Development.

The Taycan dealer launch culminated in an impressive unveiling that focused on the model’s design elements. With its clean, pure design, the Taycan signals the beginning of a new era even as it retains the unmistakable Porsche design DNA. The model’s technical features, as well as the e-preparedness of all the countries, also formed a crucial part of the launch program.

Currently available in two versions, the Taycan is the first production vehicle with a system voltage of 800 volts, instead of the usual 400 volts for electric cars. This is a particular advantage for Taycan drivers. Because in just over five minutes, the car’s battery can be recharged using direct current (DC) from the high-power charging network, which is good for a range of up to 100 kilometers (according to WLTP). The charging time for 5% to 80% SoC (state of charge) takes 22.5 minutes under ideal conditions, and the maximum charging power, or peak, is 270 kW. The overall capacity of the Performance Battery Plus is 93.4 kWh. This all means Taycan drivers can comfortably charge their cars with up to 11 kW of alternating current (AC) at home.

The flagship Turbo S version of the Taycan can generate up to a whopping 761ps. It has a combined power consumption of 26.9 kWh/100 km and a combined CO2 emissions 0 g/km on overboost power in combination with Launch Control. It accelerates from zero to 100 km/h in a mere 2.8 seconds. Its driving range is rated at up to 412 kilometers.

Meanwhile, the Taycan Turbo can deliver up to 680ps and has a combined power consumption of 26.0 kWh/100 km and a combined CO2 emissions 0 g/km. It can sprint from zero to 100 km/h in 3.2 seconds and has a range of up to 450 kilometers. The top speed of the Taycan Turbo S and Taycan Turbo — both all-wheel drive — is 260 km/h.

“The Taycan links our heritage to the future. It carries forward the success story of our brand — a brand that has fascinated and thrilled people the world over for more than 70 years,” said Oliver Blume, chairman of the Executive Board of Porsche AG.

Porsche simultaneously premiered the Taycan in three continents — North America, China and Europe — last September. The new four-door sports sedan is a unique package offering characteristic Porsche performance and connectivity with everyday usability. At the same time, highly advanced production methods and the features of the Taycan are setting new standards in the fields of sustainability and digitalization.

Skyway extension to be completed by Oct. 2020

THE construction of the Skyway extension at South Luzon Expressway (SLEx) is expected to be finished by September or October next year, two to three months ahead of the initial target completion date.

“By next year, September or October, we will complete the Skyway Extension. This will solve northbound and southbound traffic congestion once and for all,” San Miguel Corp. (SMC) President and Chief Operating Officer Ramon S. Ang was quoted as saying in a statement on Saturday.

SMC manages the Skyway Operations and Maintenance Corp. (SOMCO) which is currently undertaking a P10-billion extension on both directions of the Skyway from the toll plaza of the main line linking to Susana Heights. Construction of the four-kilometer elevated viaduct started in June and was initially scheduled for completion by December 2020.

Once 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.

Mr. Ang admitted the preliminary work on the project has inconvenienced motorists. He reiterated that the traffic flow along SLEx will normalize by Dec. 1 this year.

“My commitment to you is that by Dec. 1, all preliminary work will be done,” he said, adding that the company has started installing a temporary steel on-ramp connecting the Alabang viaduct to the Skyway.

SMC said the ramp will have two lanes and will be operational by Dec. 1. It will expand the northbound section of SLEx in Alabang from three lanes to five lanes.

“Traffic will not only return to normal levels, it will even improve. That’s because we are also opening the temporary ramp from the Alabang viaduct going up to Skyway. With a total of five lanes northbound, I think we can expect a significant improvement in the traffic,” Mr. Ang said. — Arjay L. Balinbin

Sarah Jessica Parker on ‘stunning’ demise of ‘beacon’ that was Barneys

ACTRESS Sarah Jessica Parker is forever linked to New York City and its luxury shops. In six seasons of HBO’s Sex and the City, her character, Carrie Bradshaw, cherished the gilded halls of Saks Fifth Avenue, Bergdorf Goodman, and Bloomingdale’s, with their pristine shelves and racks filled with Chanel handbags and Prada dresses. But her heart belonged to Barneys, its Madison Avenue flagship heralded as one of the premier couture epicenters of America. (“So what district do you vote in?” someone asks Carrie in the third season. “Whichever one is near Barneys,” she responds.)

Now Barneys New York is bankrupt, and those glory days are long gone. But for Parker, now a shoe-selling businesswoman with two SJP Collection boutiques in the city, it wasn’t just her character that had the love affair with that illustrious department store.

“To me, Barneys was the gold standard,” Parker says backstage at Bloomberg’s The Year Ahead conference, one week after it was announced that the Barneys business would be sold for scraps. “It wasn’t a store that I could afford, but I didn’t mind it. It was like a beacon. Like maybe one day — if you save smart and earned enough…” she stops herself, trying to find the right words to properly eulogize a fading New York cultural icon. “It’s stunning. It’s really shocking.”

In August, Barneys New York, Inc. filed for bankruptcy protection with the hopes that it could find a buyer that would allow it to keep seven stores open, but that didn’t work out. Authentic Brands Group has bought the Barneys name and will license it out to other companies. Its stores will shutter, and the couture goods will be liquidated, sold off in ongoing clearance sale with private events for Barneys loyalists. As of Friday, gift cards can no longer be redeemed. The flagship store, once a nine-story titan of high fashion, will remain open for now — albeit in a shrunken state. Remnants of Barneys will cling to life within Saks, which will roll out scaled-down Barneys-branded shops inside some of its locations.

The store’s founder Barney Pressman opened the original shop in 1923 hawking discounted men’s clothing for the salesmen who couldn’t afford the higher realms of tailoring. Parker, who moved to New York from Cincinnati as a kid in the 1970s, remembers when her brothers would get suits for themselves there. The store went upmarket decades later, replacing the dusty overstock merchandise with European designer goods to court Wall Street bankers and businessmen. Her parents, Parker says, would sometimes shop there, but they’d always wait for that annual warehouse sale.

As sad as it is for shoppers, it’s even more trying for designers, says Parker, as the fall of Barneys also closes an important avenue for fashion’s upstarts to get visibility in a crowded industry. Barneys played a role as a gatekeeper to the city’s other department stores and trendy fashion boutiques because it was willing to take chances on new label. (Parker’s show label wasn’t sold at Barneys, but it’s on the shelves and websites of many of its competitors, including Saks, Bergdorf, and Bloomingdale’s.)

“It’s been a leader in fashion, and I think it’s really upsetting for a lot of designers who have counted on that relationship to open the door to other retail opportunities,” says Parker.

Despite clearance-tagged items and “Everything must be sold!” signs in Barneys’ windows, Parker doesn’t plan to scurry to the liquidation sale. She has already cashed in her last gift card, given to her years ago. The last item she bought at Barneys was a backpack, although she couldn’t remember the brand.

“There are some really dedicated and devoted Barneys shoppers. I don’t count,” says Parker, “but a moment of silence will be observed.” — Bloomberg

Yields on gov’t debt flat

By Lourdes O. Pilar
Researcher

GOVERNMENT BOND yields barely changed last week even with lower inflation and faster-than-expected economic growth in the third quarter.

Debt yields, which move opposite to prices, went down by 0.4 basis point (bp) on average week-on-week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates of Nov. 8 published on the Philippine Dealing System’s website.

Yields on Treasury bills (T-bill) fell across the board, led by the 364-day T-bill with a 3.7-bp decline to 3.578%. This was followed by the 91- and 182-day T-bills, which dropped one basis point and 0.8 bp to yield 3.162% and 3.3%, respectively.

Bonds at the belly of the curve also went down. The two- and three-year Treasury bonds (T-bonds) yielded 3.877% and 3.997%, down 0.4 bp and 0.2 bp, respectively. Similarly, the four-, five-, and seven-year papers yielded 4.125%, 4.253%, and 4.466%, which were lower by 0.1 bp, 0.6 bp, and 1.3 bps week on week.

On the other hand, yields on longer-term T-bonds went up, with the 10-, 20-, and 25-year debt papers yielding 4.674%, 5.094%, and 5.108%, up by 0.5 bp, 1.2 bps, and 2.1 bps, respectively, from a week ago.

“[Y]ields may have been nearly sideways week-on-week as inflation is already widely expected by the financial markets to have bottomed out in October 2019 at 0.8%…due to the easing high base/denominator effects starting November 2019,” said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in an e-mail interview.

“Local benchmark yields were also nearly steady with minimal changes week-on-week after the stronger-than-expected Philippine gross domestic product (GDP) growth data of 6.2% year-on-year in [third quarter of 2019], the highest so far [this year] and above market expectations of about six percent, as this may have been an offsetting factor to the slight easing in the latest inflation data and the softer data on imports and exports,” he added.

In a separate e-mail, a bond trader said yields on the short- and medium-term tenors mostly declined after the Bangko Sentral ng Pilipinas (BSP) reduced the reserve requirement ratio (RRR) by another 100 bps effective this month, as well as from market expectations of subdued domestic inflation for October.

The reserve ratio of universal and commercial banks (U/KBs) now stands at 15% following the effectivity of the 100-bp cut in the RRR that was announced in September. Meanwhile, the RRRs of thrift banks and rural banks are now at five percent and three percent, respectively.

The BSP announced last month that the reserve ratio of universal, commercial and thrift banks will be slashed by another 100 bps effective December, bringing total reductions to their reserve ratios for this year to 400 bps. This cut will also apply to the reserve ratio of non-bank financial institutions and quasi-banking functions (NBQBs).

This will bring the RRRs of U/KBs and thrift banks to 14% and four percent by December, respectively. On the other hand, the reserve ratio of NBQBs will be cut to 14% next month.

Meanwhile, the Philippine Statistics Authority (PSA) reported last Tuesday the headline inflation decelerated to 0.8% in October from 0.9% in September, the slowest in three-and-a-half years or since April 2016’s 0.7%.

The day after, PSA reported the country’s trade-in-goods deficit narrowed to $3.12 billion in September from $4.02 billion in the same month last year amid an import decline of 10.5% outpacing that of exports, which contracted by 2.6%.

On Thursday, the government reported a third-quarter GDP growth of 6.2%, marking the fastest clip this year so far and picking up from the year ago’s six percent. This brought year-to-date GDP growth to 5.8%, closer to the lower end of the full-year goal but still a slower than last year’s 6.2%.

“Local interest rate benchmarks could again be steady to slightly lower, in view of the upcoming local monetary policy-setting meeting on [Thursday], especially if the BSP keeps its key policy rates unchanged, as consistent with earlier signals from local monetary authorities that there will be no more cuts in both local policy rates and RRR for the rest of 2019,” Mr. Ricafort said.

“However, in view of the 0.25-percentage-point [policy rate cut by the US Federal Reserve] on October 30, a possible cut in local policy rates cannot be completely ruled out, especially in the coming months.”

For the bond trader, local yields “might move with an upward bias” this week as the BSP is expected to hold its policy rates steady during its November meeting amid views that inflation has already bottomed out in October.

“Moreover, positive developments on the US-China trade talks are also seen to boost yields,” the bond trader added.

For ING Bank N.V.-Manila Senior Economist Nicholas Antonio T. Mapa: “Market players will be looking to the BSP meeting later next week for direction even if BSP Governor Benjamin E. Diokno signalled no more policy adjustments.”

“Possible comments from Governor Diokno on forward guidance could still give traders direction,” he said.

Social enterprise to set up urban farms on subscription model

SOCIAL enterprise Uproot Urban Farms said it hopes to establish 10 grow hubs in Metro Manila next year to serve the growing population which it believes may not be adequately served by the agriculture industry in its current state.

“Next year, we are hoping to have at least 10 across Metro Manila,” Uproot Founder and Chief Executive Officer Robi F. Del Rosario told BusinessWorld in an interview.

“I really believe our present agriculture system is not enough to feed our population, and they say that by 2030, majority of the people will be living in cities, so it us makes sense that we grow the food where it is consumed,” he said.

According to the Philippine Statistics Authority (PSA), the National Capital Region (NCR) has a total population of 12.877 million in 2015, up 8% from the last census.

According to the Social Weather Stations (SWS) polling organization, the national hunger rate in the third quarter was 9.1%, or about 2.3 million families experiencing involuntary hunger at least once during the period. Of this total, 7.4% or about 1.8 million families experienced “moderate hunger”, down from 8.7% in the second quarter, and 1.7% or 426,000 families experienced “severe hunger,” up from 1.3%.

People are classified under the “moderate hunger” category if they experienced involuntary hunger once or a few times in the past three months. Those under “severe hunger” experienced hunger often or always.

“For a country still struggling to attain food security, this is unacceptable. Our goal is to have every barangay to have a grow hub to lessen food waste and to provide our consumers, not just high-quality, but also high-nutrient produce,’ Mr. Del Rosario said.

He noted that target areas include the cities of Pasig, Taguig, Makati, and Pasay. Currently, the company has three hubs in Rizal province, while another hub will soon be built within Intramuros, which will be built through the prize money the company received from the country’s first-ever Total Philippines’ Startupper of the Year challenge in February.

“The plan is really to grow food within the cities, and (there is really) limited space, and the only way to grow a significant amount of food is by using… aquaponics,” he said.

Aquaponics is a combination of aquaculture, or growing fish and other aquatic animals, and hydroponics, or growing plants without soil.

Prior to building 30-square meter (sq.m.) hubs, the company establishes facilities which could contain 100 tilapia and grow 36 varieties of plants. Capital needed to build such a facility is P30,000; for a 30-sq.m. grow hub, the required investment is P200,000-P250,000.

Mr. Del Rosario said that one of the main reasons why people choose to eat unhealthy food is the need to travel to the market or grocery, which adds cost and time. These hubs serve as growing centers for a variety of vegetables, which are then delivered to subscribers. The company also shares recipes with subscribers.

“The most common feedback that we have received is convenience… they do not have to go to the grocery to buy more tomatoes than the one or two that they need,” with the rest going to waste,” Mr. Del Rosario said. — Vincent Mariel P. Galang

Honda introduces new City variant, the 1.5 S CVT

HONDA has introduced a new variant of its best-selling City model, the 1.5 S CVT. This new variant is designed for customers who wish to own a well-equipped City in a more affordable package.

The Honda City is Honda’s best-selling nameplate in the Philippines. It enjoys the trust of Filipinos looking for a practical, stylish and comfortable subcompact sedan, equipped with a powerful and efficient engine, spacious interior and cargo capacity.

The new City 1.5 S CVT is Honda’s most affordable variant in the City model lineup to be equipped with a Continuously Variable Transmission. Together with the City’s 1.5-liter SOHC i-VTEC engine that produces a maximum power of 120 ps and a maximum torque of 14.8 kg-m, the synergy of the engine and the CVT transmission provides a smoother ride with uncompromised fuel efficiency. Combined with the various safety and convenience features such as LED Daytime Running Lights, Front Driver and Passenger Airbags, Anti-Lock Braking System (ABS) with Electronic Brake-force Distribution (EBD), 1-DIN Audio with USB and AUX inputs, and Keyless Entry as standard, the City 1.5 S CVT aims to give customers one of the best value for money propositions in its class.

The New Honda City 1.5 S CVT is now available at all Honda Dealerships with a suggested retail price of P820,000 and will be available in four colors: Lunar Silver, Modern Steel Metallic, Crystal Black Pearl, and Taffeta White.

Better-than-expected earnings drive SMIC stock higher

SM Investments Corp. (SMIC) was the most actively traded stock last week after the company’s third-quarter earnings exceeded expectations.

A total of P3.345 billion worth of 3.181 million SMIC shares exchanged hands from Nov. 4 to 8, Philippine Stock Exchange (PSE) data showed.

SMIC stock grew by 3.88% on a week-on-week basis to P1,070 apiece last Friday. Since the start of the year, the stock has risen by 16.88%.

“SMIC recently reported 3Q earnings, which were above expectations,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in an e-mail interview last Friday.

“The strong performance of its core businesses, namely property and banking, was enough to offset the one-percent decline in SM Retail, Inc…,” he added.

Unicapital Securities, Inc. Technical Analyst Cristopher Adrian T. San Pedro likewise cited the conglomerate’s earnings growth, noting foreigners are taking positions on the stock.

“It also recorded net foreign buying of P985.64 million (Nov. 4-7) in value turnover [last] week as the investors anticipate the rosy third-quarter earnings report,” Mr. San Pedro said.

The day before the release of the earnings report saw 729,660 SMIC shares being traded, bringing the stock’s intraday and closing price to P1,091 apiece. Some traders then took profits the day after, bringing the stock’s closing price down to P1,057 per share.

Net foreign buying for SMIC stood at P1.53 billion last week, 41% more than the P1.08 billion recorded the previous week.

The holding firm of the Sy family posted a net income of P33.1 billion as of end-September, up 26% from a year ago.

Its banking business accounted for 44% of SMIC’s reported net earnings. The period saw the earnings of BDO Unibank, Inc. and China Banking Corp. surge by 49% to P32.1 billion and 21% to P6.7 billion, respectively.

SM’s property segment, which is operated by SM Prime Holdings, Inc., saw an 18% year-on-year growth in its net income to P27.6 billion amid a 14% rise in revenues to P85 billion. Its mall segment posted an 8% growth in revenues to P42 billion while that of its residential business increased 26% to P31.9 billion.

On the other hand, its retail business, which is operated by SM Retail, reported a net income of P7.8 billion during the nine-month period, lower by 1% as a result of the implementation of the Philippine Financial Reporting Standards (PFRS) 16 that took effect this year. Excluding the impact of PFRS 16, net income in this segment grew by eight percent.

SM Retail’s revenues rose 12% to P253.9 billion during the nine-month period.

“We believe SMIC is in a position to break out net income forecast of P45 billion given that it is already ahead by 26% for the first nine months of the year,” Regina Capital’s Mr. Limlingan said.

For Unicapital’s Mr. San Pedro: “We expect the company to earn at least P36.4 billion [for the full-year 2019] to be driven by the core business of its property and banking segments.”

Mr. San Pedro noted the stock “remains bullish” as it is “supported by the bullish rounding bottom pattern in the medium term.”

“We expect the stock to range between [the support of] P1,020 and [the resistance level of] P1,091 with a [target price of] P1,142 if it stays above P1,040 in the short term,” Mr. San Pedro said.

Meanwhile, Regina Capital’s Mr. Limlingan pegged the stock’s support at P1,020 and resistance at P1,100. — Jobo C. Hernandez

Suzuki maintains growth in Q3, introduces new Vitara

CONSISTENT with its strong performance for the first two quarters of the year, pioneer compact car distributor Suzuki Philippines (SPH) finished the third quarter with positive growth yet again, enabling the company to post 19% sales growth for the first nine months of the year over the same period in 2018.

The continued sales increase is the result of the brand’s strategic marketing efforts, which emphasize numerous promotions and interactive events and are aimed at boosting product visibility. SPH hopes to ride on this strong market and brand momentum to further strengthen its position in the market through the remaining months of 2019.

“Suzuki’s current standing in the Philippine automotive industry is a significant milestone for the brand. After securing the 4th spot in the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) ranking — the highest rank in the brand’s history — and climbing to the 5th spot in the local automotive industry roster last quarter, we at Suzuki Philippines can definitely say that 2019 has been a monumental year for the brand,” shared SPH Director and General Manager for Automobile Division Keiichi Suzuki.

“These back-to-back achievements further fuel our drive to deliver on the brand’s promise of quality driving experience with every Suzuki vehicle,” he added.

TOP SALES DRIVERS: ERTIGA, SWIFT, CELERIO
The Ertiga, Swift and Celerio continue to excite and stimulate the market as Suzuki’s best-selling vehicles. The three award-winning models combined accounted for 56% of total sales from January to September this year.

The well-loved family vehicle Ertiga still dominates the Suzuki auto sales chart with a 34% share. This 7-seater vehicle fortified its position as the top-favorite Suzuki vehicle with the release of the Ertiga Black interior version, which drove sales up even further.

Aside from its fuel efficiency and spacious interior that complement the body’s elegance and modern style, the Ertiga demonstrates good engine performance that is powerful and cost-efficient, making it an ideal vehicle for practical Filipino families.

The Swift kept its position as the second top-selling Suzuki model with an 11.4% share of total sales. This hatchback remains the millennials’ top choice among Suzuki vehicles. With its sleek and stylish design that is very recognizable on the road, millennials can definitely identify with this fun and compact Suzuki hatchback.

Accounting for 11% share of sales, the Celerio ranks third among Suzuki’s top-selling vehicles. This hatchback, known for its space and roomy dimension, can accommodate up to 254-liters worth of cargo with an uncompromised 5-seater capacity, alongside its remarkable fuel efficiency that ups the ante for its category.

DEBUTS NEW VITARA
Another vehicle from Suzuki Philippines that stunned the market this year and won the 2019-2020 Auto Focus Media’s Choice Awards’ Compact SUV of the Year: Best Value for Money award is the Suzuki Vitara. Committed to continue its legacy and stand firm to its promise to provide value-packed and affordable products to more Filipinos, Suzuki proudly debuts the improved and upgraded New Vitara. This CBU Unit from Magyar Suzuki Corporation (MSC Hungary) is available in GL+ 6-speed automatic and GLX 6-speed automatic variants.

Suzuki has made several improvements and upgrades in both the exterior and interior of the new Vitara. It is now equipped with a new grille, bumpers and rear combination lamps, all of which create an expressive exterior. The new stylish suede front and rear seats, cluster meter and premium-feel cabin create a comfortable yet stylish interior vibe.

“The new Vitara will surely appeal to car enthusiasts looking for an improved version of the classic Suzuki vehicle. It is our pleasure to bring another modified Suzuki vehicle to the Philippines. The New Vitara will certainly deliver an exceptional driving experience to Filipinos — the Suzuki way,” shared Keiichi Suzuki.

For more information about Suzuki Philippines and its automobiles, please visit www.suzuki.com.ph and like them on www.facebook.com/SuzukiAutoPH.

Peso to strengthen as BSP halts easing cycle

THE PESO is seen to climb this week on the back of local economic data coming up and signals of a pause in monetary easing from the central bank.

The local unit closed at P50.49 against the greenback on Friday, depreciating by less than a centavo from the P50.481-a-dollar finish on Thursday, according to data from the Bankers’ Association of the Philippines.

Week on week, it appreciated by 25 centavos from its close of P50.74 on Oct. 31.

Dollars traded on Friday slipped to $789.65 million from $1.15 billion seen on Thursday.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort attributed the peso’s weakness to factors such as US-China trade developments and US data.

“The peso was slightly weaker…due to positive developments in the US-China trade talks particularly the optimism on the possible phase one trade deal in the coming weeks… Stronger US economic data on initial jobless claims also supported the slight upward correction in the US dollar,” Mr. Ricafort said in a text message.

Meanwhile, UnionBank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion said the peso’s sideway movements could be due to the lack of leads.

“The peso was steady on Friday after the higher-than-expected Q3 GDP (gross domestic product) on Thursday and this is due to lack of drivers [on Friday],” he said in a text message.

The United States and China have agreed to roll back tariffs on each others’ goods in a “phase one” trade deal if it is completed, officials from both sides said on Thursday, sparking division among some advisers to US President Donald Trump.

The Chinese Commerce Ministry, without laying out a timetable, said the two countries had agreed to cancel the tariffs in phases.

Meanwhile, data from the Philippine Statistics Authority (PSA) showed the Philippine economy grew 6.2% in the third quarter, with the government catching up on spending after delays in the passage of the national budget took its toll on expansion in the first half.

For this week, economists believe the peso’s performance will gain traction from the market taking cues that there will be no more monetary easing in the upcoming Bangko Sentral ng Pilipinas (BSP) policy review and the slew of data to be reported this week, including foreign direct investments (FDI).

“The upcoming BSP monetary policy meeting would be the major lead… No cut on policy rates would support sentiment on the peso, in view of the [recent] Fed rate cut as this would increase the peso’s interest rate premium over comparable US interest rate benchmarks, thereby making the peso more attractive with relatively higher interest rate returns without a local policy rate cut,” RCBC’s Mr. Ricafort said.

UnionBank’s Mr. Asuncion also sees the upcoming Monetary Board meeting to affect the peso’s performance as well as the upcoming FDI data.

“The local currency’s strength next week is expected to be driven by FDI data release and the BSP’s interest rate decision,” he said.

BSP Governor Benjamin E. Diokno told ANC and Bloomberg earlier this month that the central bank is done cutting rates for this year. The Monetary Board’s policy meeting is set on Thursday, Nov. 14.

Mr. Diokno also said the current monetary policy “remains appropriate” as the “economy is back on track to a strong growth path” following the release of data showing gross domestic product growth of 6.2% in the third quarter.

So far, the central bank has already slashed benchmark interest rates by 75 basis points this year, partially dialling back the 175-bps rate hike barrage in 2018 amid an elevated inflation environment.

Meanwhile, the central bank is set to report the FDI in August today. Data on remittances and hot money will also be released by Friday.

For this week, RCBC’s Mr. Ricafort expects that the peso will trade at a range of P50.25-50.65, while UnionBank’s Mr. Asuncion believes the local unit will play around the P50.30-50.60 band. — Luz Wendy T. Noble with Reuters

Global rice output seen flat in November — USDA

GLOBAL rice production in November is expected to remain flat as a large harvest from India is expected to offset lower volumes from Indonesia and the Philippines, the US Department of Agriculture (USDA) said.

“Global rice production is nearly unchanged this month, as a larger Indian crop is fully offset by smaller harvests for Indonesia and the Philippines,” USDA said in its Grain: World Markets and Trade report for November.

During the month, the USDA estimated rice imports by the Philippines at 2.5 million metric tons (MT), down 7% month-on-month. The decline in imports is also associated with a preliminary investigation into possible safeguard duties by the Philippine Department of Agriculture (DA), which was later cancelled.

Output of milled rice in the Philippines is expected to decrease 1.6% month-on-month to 12 million MT. Consumption and residual totals of purchased rice in the country is also projected to decrease 2% month-on-mont to 14.2 million MT.

Philippine rice inventory at the end of the month is expected to remain steady at 3.790 million MT.

In a separate report on World Agricultural Production, USDA noted that the Philippines’ November production is projected to rise 2.28% year-on-year.

Yields is also projected to increase 4.05 MT per hectare, or 1.5% month-on-month. Over the same period, area harvested is projected to decrease 3% to 4.7 million hectares.

The USDA said the Philippines remains is one of the leading markets for Chinese corn starch.

“Major destinations for China’s exports have been neighboring countries. For corn starch, Indonesia, Malaysia, the Philippines, and Vietnam have been the leading markets,” the USDA said.

Corn production in the Philippines is projected to be stable at 8.1 million MT in November.

Southeast Asia is projected to import 18.005 million MT of corn in the November, up 5% compared to the estimate for October. Consumption is expected to increase 2% to 50.450 million MT. — Vincent Mariel P. Galang

New Megaworld condo to generate P5.2-B sales

MEGAWORLD Corp. is targeting to raise P5.2 billion in sales from a new residential condominium project in Sta. Cruz, Manila.

In a statement, the listed property developer said it launched the 34-storey Kingsquare Residence within the San Lazaro Tourism and Business Park.

The residential tower will offer 961 units, composed of studio type, which will span up to 31 square meters (sq.m.); one-bedroom type, which will span up to 46 sq.m.; and two-bedroom type, which will span up to 46 sq.m.

Megaworld said it is bullish on the project as it is located near the University Belt and several hospitals such as the University of Santo Tomas Hospital, Chinese General Hospital and Metropolitan Medical Center.

“This new residential development is perfect for students, teachers, doctors and other professionals, including families who have kids studying within the area. It is very close to schools and universities, hospitals, and soon, a mall that will have a direct connection for residents,” Wilson Sy, first vice-president for sales and marketing in Megaworld Manila, was quoted in the statement as saying.

Megaworld said the project is also located near the Light Rail Transit Line 1 and Philippine National Railways. It is also close to the España Interchange which would link it to the South Luzon Expressway and North Luzon Expressway.

“Everything is just within easy reach, whether you want to go north or south. It is also walkable to downtown Manila via Rizal Avenue (Radial Road 9), and Lacson Avenue (Circumferential Road 2),” Mr. Sy said.

The Kingsquare Residence project is scheduled for completion in 2024.

Megaworld is owned by tycoon Andrew L. Tan and is primarily engaged in real estate development, leasing and marketing.

In the first half of the year, the company saw its attributable net income grow 16% to P8.3 billion, driven by the 20% rise in its revenues to P16.8 billion.

Megaworld is under Mr. Tan’s holding firm Alliance Global Group, Inc., which operates businesses in liquor, gaming, quick-service restaurants and infrastructure development. — Denise A. Valdez

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