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Time looks different with Reservoir

THE FACT that its horological instruments are inspired by vintage meters from cars, a submarine, and a plane, is what separates the young French-based, Swiss-made Reservoir from other watch brands. That and its “affordable luxury” pricing — which does not mean skimping on fine watchmaking.

The brand was the brainchild of former banker Francois Moreau who always had a fascination with vintage meters and “anything related to old car dashboards, old plane dashboards,” said Francois Nakkadchji, business development director and partner at Reservoir, during the brand’s launch on Oct. 24 at the Raffles Makati Hotel.

“He had this idea of duplicating the readings of vintage meters into a watch. That’s the concept of Reservoir: combining three horological complications… to create a unique watch with a unique proposition,” he said.

In its designs, hours are indicated digitally on the lower half of the dial which “jumps” when the minute hand — located on the upper half of the dial — reaches 60. After reaching 60, the minute hand cycles back to one without the hand ever making a full turn. A power-reserve display reminiscent of fuel gauges is located below the hour display.

The unique watch garnered enough interest since its first foray into Baselworld 2017 to be able to enter 19 countries around the world with 80 points of sale.

The brand currently has 25 designs categorized into cars, aeronautics, and marine, all designed after speedometers, dials, and gauges.

Reservoir’s first — and currently one of the most popular — design, the GT Tour, was fashioned after the tachometers of 1970s race cars, with a red minute hand and red markings for five and six, representing the 50th and 60th minutes. It has a 43 mm face with a 316L stainless steel case, a black dial, and self-winding mechanical movement with 37 hours power reserve, according to the company website.

Also popular (particularly in the UK and Japan, according to Mr. Nakkadchji) is the Longbridge collection, inspired by the dashboard of the classic 1960s Mini Cooper.

“Reservoir takes inspiration from this little audacious’ measurement instruments to embody urban chic and English luxury,” the website said.

The Longbridge comes in the usual 43mm face and a 39mm version called Lady Longbridge. It comes in several colors with the top-of-the-line watch coming with gemstone cabochons reminiscent of the speedometer’s diodes.

During the launch where five designs were presented, the one that came out the favorite was the Tiefenmesser Bronze, inspired by the gauges of a German U-boat. It has a 43mm bronze case, a white dial, and blue minute hand.

Mr. Nakkadchji explained that the bronze case is untreated so as time goes on, it will show a patina of wear. People who have allergies to heavy metals need not worry as he said that the back is titanium so the bronze does not come in contact with the skin.

Lucerne — which is the exclusive distributor of the brand in the Philippines — noted that the watches will range in price from P270,000 to P800,000. Of the current 25 designs, 22 will be available in the Philippines.

“We started to see in China [that our customers] are young people who wants something different from their father’s watches… [but] they want something different, something unique, something their friend won’t know about, and they don’t want the big names,” Mr. Nakkadchji said.

In Asia, Reservoir is currently available in Japan, Indonesia, Malaysia, and China, with plans to enter Thailand “very soon.”

The brand will be available in the Lucerne Atelier in Bonifacio Global City and temporarily in Glorietta.

Lucerne President Ivan Yao said in the same event that because of ongoing renovations at SM Mall of Asia in Pasay City, they will first carry Reservoir in their Glorietta branch before moving it to Mall of Asia. — Zsarlene B. Chua

Bosconians drive the future in 3rd leg of Toyota’s Hybrid Campus Tour

TOYOTA MOTOR PHILIPPINES (TMP) further strengthens its efforts to educate the public on the benefits of vehicle electrification by staging another leg of its Hybrid Campus Tour series in Don Bosco Technical College (DBTC), Mandaluyong. This whole-day event marks the first time that the all-new Corolla Altis hybrid variant is offered for a public test drive, following its introduction to the Philippine market last September.

A total of 465 students from different fields joined three batches of educational seminars, achieving the highest participation record to date for the Hybrid Campus Tour series since its inception in March 2019. Toyota’s technical experts also gave experiential lessons to the students and faculty through a whole-day test drive activity inside the school grounds. Almost 50 students signed up to try out the Prius C and the Corolla Altis hybrid.

“Toyota’s initiative reflects the global shift to cleaner energy sources, and addresses the numerous crises we are experiencing now,” said TMP First Vice-President Cristina Arevalo. “From energy conservation, transportation, and global warming, TMP wants to make sure that we are doing our part for a more sustainable future. We chose to start with university students because they are the shapers of tomorrow.”

Both faculty and students of Mechanical Engineering, Architecture, Electronics & Communication Engineering, Computer Science, and Aviation Mechanical Technology were able to experience firsthand Toyota’s hybrid technology.

Even student-trainees from Don Bosco’s Technical Vocational courses were given the chance to drive the hybrid vehicles and discover the inner workings behind each model’s seamless driving.

In a statement, DBTC Director Engr. Winston Dereje expounded: “We educate for life — this is the mission of all Don Bosco Educational Centers. Through this partnership between Don Bosco and Toyota, our students were able to understand the science behind hybrid tech, and how it helps the environment by lowering our carbon footprint. It is truly a technology with a soul, and an inspiration for the young to be lifelong learners.”

Aside from the hybrid electric cars, attendees in Don Bosco Technical College Mandaluyong were also treated to interactive displays like the stationary bike charger and multimedia exhibits.

Korean Air starts Clark-Incheon flights

SOUTH KOREAN flag carrier Korean Air on Sunday began offering direct flights from Clark, Pampanga to Incheon, South Korea, the Department of Transportation (DoTr) said.

“Travelers to Korea can now add Clark as their gateway beginning today, 27 October 2019,” the DoTr said in a statement.

Korean Air’s Clark-Incheon flights run seven days a week. KE 636 departs Clark at 13:10 and arrives in Incheon at 18:10. The return flight KE 635 departs Incheon at 7:55 a.m. and arrives in Clark at 11:05 a.m.

“Today, it’s not about coming in and flying out, it’s all about trust. And I know that Korean Air came here not only because of the revenue that is to be generated, but more importantly, and this was mentioned to me by Ambassador Han — ‘we are going to Clark, if we are going to expand our operations in the Philippines, it’s because we want to show faith and trust in the Republic of the Philippines,” Transportation Secretary Arthur P. Tugade was quoted as saying during the inaugural ceremony for Korean Air’s new route at the Clark International Airport.

Mr. Tugade noted that Clark remains to be an “attractive and viable destination” for air traffic and logistics hub in Central Luzon.

He added that pursuing Clark’s development as an alternative gateway “will vastly improve” the Philippines’ travel and tourism industry.

Korean Air has 17 flights from Manila to Incheon every week.

The South Korean carrier planning to mount more flights to Southeast Asia, China and Oceania, after it suspended or reduced flights to some Japanese cities amid an ongoing trade row with Japan. — Arjay L. Balinbin

MinDA backs sorghum to counter Panama disease

DAVAO CITY – The Mindanao Development Authority (MinDA) has proposed the planting of sorghum in banana farms that have been affected by Fusarium wilt, also known as Panama disease, to provide an alternative income to farmers and allow the land to recover.

MinDA Chair Emmanuel F. Piñol put forward the proposal to banana stakeholders last week in a forum held in Tagum City, Davao del Norte.

“Planting sorghum does not require you to overhaul the terrain of your fields so it will be easier to grow, and these are guaranteed to grow in your fields with less maintenance,” Mr. Piñol said in a statement after the meeting.

Reynaldo A. Araneta Jr. of Diamond Farms Agrarian Reform Beneficiaries Cooperative expressed support for the plan, which he said would also benefit their members, none of whom have been affected by the infestation, as growing sorghum could help stop the spread of the soil-borne disease into other farms.

“At least we (fellow farmers) will have an alternative crop while we allow the farm to recover,” Mr. Araneta told BusinessWorld.

Areas that have been infected by Fusarium wilt cannot be replanted with banana unless the infestation is fully eliminated, or new cultivars that are resistant to the disease are introduced.

Mr. Piñol said sorghum commands a good price in the global market with potential buyers lined up, including one based in Thailand.

He also said an American company has offered to provide support through planting materials. — Carmelito Q. Francisco

The iPhone of 1939 helped liberate Europe. And women

By Virginia Postrel
Bloomberg Opinion

LAST week marked the 80th anniversary of one of the most successful and consequential product introductions ever. On Oct. 24, 1939, nylon stockings went on sale to the public for the first time. The frenzied reception was comparable to the one that greeted the original iPhone, and so were the long-term consequences.

“Customers were lined three deep at the counters most of the day,” reported the New York Times, noting that many buyers were men. The sale was merely a trial: 4,000 unbranded pairs sold by DuPont to demonstrate its new fiber’s real-world wearability. By 1 p.m., the six Wilmington, Delaware, stores offering them were completely sold out.

The stockings cost $1.15 to $1.35 a pair ($21.09 to $24.76 in today’s dollars), depending on their sheerness, or about four hours of work at the minimum wage of 30 cents. When the national rollout took place the following May, about 800,000 pairs sold the first day.

Nylon’s inventor was a brilliant, troubled organic chemist named Wallace Carothers, who was hired by DuPont with the promise that he could research whatever he wanted to. He decided to investigate the nature of polymers, which many chemists believed were too large to be single molecules.

By 1931, his team had synthesized the first polyester and demonstrated that polymers were in fact regular molecules of extraordinary, theoretically unlimited, length. It was an enormous scientific achievement with no immediate commercial applications. Although it easily produced fibers, the new polyester melted at too low a temperature to be practical for textiles. After briefly trying different polymer components — amides rather than esters — Carothers turned to other research topics.

Nylon came about because DuPont broke its original promise of complete research freedom. As the Great Depression deepened, the company needed to show a return on its scientific investment. Carothers’ boss told him to figure out how to make a practical polymer fiber.

“Wallace, if you could just get something with better properties, higher melting point, insolubility, and tensile strength, you could have a new type of fiber,” he said. Why not revisit the polyamide research? After all, he noted, “wool is a polyamide.”

So beginning in early 1934, Carothers abandoned pure research and set out to make a polyamide that would tolerate hot water and dry cleaning fluid. After a few months of systematic trials, the lab had its first success: a silk-like filament that stood up to both. Further experiments found a way to synthesize it using benzene, a plentiful coal derivative, thereby making the new fiber affordable. By the end of 1935, the first nylon yarn was ready for testing.

Here we see the tricky balance that makes research management so difficult. Without the freedom to do fundamental research on the nature of polymers, nylon would have never been invented. Yet only by demanding that Carothers turn his attention to a more mundane, less scientifically appealing problem did the lab realize his research’s commercial potential.

From the start, DuPont knew that women’s hosiery would be a big market for its new fiber. It touted nylon stockings as a substitute for silk, boasting of the geopolitical implications of slashing Japan’s silk exports. “These may change the map of the world,” said an executive. Early sales mostly cut into the market for cheaper rayon and cotton stockings, however, giving silk stocking makers time to make the transition.

The new fiber did, of course, shape the map of the world. World War II temporarily diverted nylon away from consumer products to parachutes, glider tow ropes, tire cords, mosquito nets, and flak jackets. When Allied paratroopers dropped from the skies to launch the Normandy invasion, they unfurled nylon parachutes. Someone, perhaps an astute DuPont P.R. man, called the new synthetic the “fiber that won the war.”

DuPont made a deliberate decision not to promote nylon as “artificial silk” but, rather, as an exciting new synthetic made from “coal, air, and water.” The clear implication was that nylon was better than old-fashioned silk — stronger, more elastic, quicker drying, less likely to spot in the rain, more durable. Having promoted nylon as more resistant to snags than silk, the company had to damp down public expectations that the new stockings would never run.

Just as the iPhone defined a new device category, leading to competing smartphones, so nylon inspired similar synthetic fibers. After reading Carothers’ results, British chemists Rex Whinfield and James Dickson developed the fiber we know today as polyester, using the “less familiar and long neglected” terephthalic acid as an ingredient. They correctly hypothesized that its greater molecular symmetry would produce better results than Carothers’ polyester experiments.

Synthetic fibers fostered a fundamental shift in fashion expectations that continues to this day. “More than looks,” writes business historian Regina Lee Blaszczyk, “the characteristic that I call ‘high performance’ distinguished the panoply of postwar products from their early-20th-century predecessors… Curtains that could be drip dried, uniforms that never needed ironing, and sweaters that could be washed without shrinking reduced domestic burdens.” Comfort and convenience became paramount, and casual styles followed.

Nylons quickly became a synonym for women’s hose, including the pantyhose that supplanted garters and girdles in the era of miniskirts and women’s liberation — the latter made possible in part by synthetics that made keeping house a less than full-time job. Eventually, nylons, too, went out of style, supplanted by bare legs or, in colder temperatures, polyester-spandex tights and leggings. Today’s young woman is more likely to wear nylon in her sneakers or backpack than on her legs.

DuPont coined the generic term nylon but didn’t trademark it, reserving proper names for specific uses, such as the Exton toothbrush bristles that were the first nylon on the market, beating stockings by a full year. More even than stockings, those plastic bristles illustrate a technological truth that the iPhone’s makers are facing.

A thrilling new technology, if successful, is soon completely taken for granted. Incremental improvements will continue, but the excitement will dim. When was the last time you appreciated your toothbrush bristles for not absorbing water?

MINI PHL celebrates 60 years of an icon

By Manny N. de los Reyes

ONLY ONE CAR can lay claim to being true to its original identity even 60 years after its rules-defying pioneer first put wheels to the ground.

This is the inimitable and enduring MINI. Cheeky styling. Small outside yet surprisingly spacious inside. Wickedly quick. Razor-sharp handling. Wonderfully fuel-efficient.

These descriptions applied to the seminal MINI way back in 1959 and it applies to the latest MINI in 2019.

With its inventive spirit, MINI continues to turn heads with its iconic design both on and off the track. MINI celebrates its 60th birthday this year, and to this day, there is no other automobile quite like it. To commemorate this landmark occasion, MINI Philippines celebrated 60 Years of MINI at Eastwood Citywalk two weekends ago.

As part of the celebration, MINI Philippines unveiled the MINI 60 Years Edition, an exclusive model highlighting the British origins of MINI, and gathered more than 135 MINI owners and their beloved cars together to create a special ‘60’ formation with their MINI cars at the Eastwood Mega Tent that Sunday.

“With its rich heritage and impact on contemporary culture, MINI is more than the car — it is also a lifestyle that celebrates the connections between people, as well as the passion for life,” said Willy Tee Ten, president of MINI Philippines and Autohub Group of Companies. “It gives us great pleasure to bring together the growing MINI community in one place to celebrate this storied brand. We thank all MINI fans for journeying with us, and together, we look forward to the next 60 years!” he added.

MINI aficionados at every turn were greeted with a special lineup of classic Mini cars at Eastwood’s Central Plaza. It was a perfect blend of tradition and modernity as the classic cars provided a unique backdrop for guests as they got up close with the modern MINI models in the heart of the event — the MINI Monte Carlo, MINI Countryman John Cooper Works, MINI Clubman, and the MINI Convertible.

Guests also took a walk down memory lane with the MINI History wall, showcasing the rich heritage of MINI and key brand milestones. Highlights also included the immortal sketch of the Mini concept by car designer Sir Alec Issigonis, the brand’s momentous triumph at the Monte Carlo Rally, as well as its presence on television as the Beanmobile in the world-beloved sitcom character, Mr. Bean.

Needless to say, the star of the weekend was the MINI 60 Years Edition, the exclusively designed anniversary model to commemorate six decades of passion and driving fun.

Guests were treated to exciting activities such as live art demonstrations, street magic performances, acoustic acts from local musicians, a special MINI photobooth to memorialize their time at the MINI 60 Years Event, as well as games and raffles conducted by MINI Philippines.

‘MINI 60’ CAR FORMATION
MINI Philippines brought more than 135 MINI owners and their friends together to create a special ‘60’ car formation with MINI vehicles. Organized in conjunction with the MINI Car Club of the Philippines, this landmark occasion was held at the Eastwood Mega Tent, with the owners gathering at MINI Pampanga and MINI Alabang before commencing the celebratory drive to the Mega Tent.

“The MINI community in the Philippines has the most enthusiastic fans who appreciate driving fun, expressive design and premium quality,” said Mr. Tee Ten. “It’s fantastic to have so many MINI owners join this milestone event. A big thank you to all of our MINI customers for their continuous support, and we look forward to doing even more with the MINI community in the years ahead,” he added.

Investors unload URC shares after lower-than-expected Q3 earnings

By Mark T. Amoguis
Senior Researcher

GOKONGWEI-LED Universal Robina Corp. (URC) was among the most traded stocks last week as investors started to unload some of their shares after the company’s third-quarter earnings fell below expectations.

A total of P1.195 billion worth of 7.786 million URC shares exchanged hands from Oct. 21 to 25, making it the fifth most traded issue in the local bourse, the Philippine Stock Exchange data showed.

The stock declined by four percent on a week-on-week basis to P150 apiece last Friday. Since the start of the year, however, it has risen by 17.6%.

“The third quarter 2019 earnings release is the biggest catalyst that drove the stock’s price movement. It has been on a narrow consolidation for the past several days before breaking down the day of its earnings release,” Paola Beatrice C. Lopez, equity analyst at Regina Capital Development Corp., said in an e-mail interview last Friday.

“We have been expecting that URC will be able to sustain the positive growth it had shown for the past two quarters, so its (third-quarter) results came as a surprise. This resulted in the stock’s breakdown,” she said.

In a separate interview, AP Securities, Inc. Senior Research Analyst Rachelle C. Cruz said URC’s third-quarter earnings were below estimates, setting the market expectations for the consumer sector.

“People are banking on the recovery of its coffee segment… apparently this third quarter, [URC’s] competitors are aggressively doing marketing efforts… The competition has led to slowdown the coffee volume of URC…,” Ms. Cruz said in a phone interview on Friday.

URC, which makes Great Taste and Blend 45 coffee, has described itself as a “competitive 3rd player in the coffee business.”

In a disclosure last Thursday, URC reported a 6.2% year-on-year decline on its attributable net income to P1.968 billion despite registering a 6.2% growth in its revenue to P32.744 billion during the three-month period.

This brought URC’s nine-month attributable net income to P6.997 billion, an increase of 2.9% from last year. Its top line, meanwhile, went up by 5.8% to P99.785 billion during the January to September period.

Accounting for the bulk — almost 80% — of its revenues during the nine months to September is URC’s branded consumer goods group, which includes Jack’N Jill snacks, C2 tea and Nissin noodles, Revenues under this segment increased by 3.8% to P79.017 billion from P76.113 billion previously.

Its agro-industrial segment jumped by 18% to P9.963 billion, while the commodity foods group inched up by 1.6% to P10.805 billion.

The company targets a 7-9% increase in its sales this year, banking on the recovery of its coffee segment as well as the growth of its food and agro-industrial businesses.

For this week, URC will be trending sideways with some downward bias, AP Securities’ Ms. Cruz said, placing the stock’s support and resistance levels at P143.2 and P160, respectively.

For Regina Capital’s Ms. Lopez: “Given the bearishness of its indicators, it is likely that URC will bottom out first before investors pick up again.”

Ms. Lopez pegged URC’s support and resistance levels at P144-149.5 and P156.3, respectively.

Suedzucker raises earnings outlook on improved ethanol demand

HAMBURG — Suedzucker, Europe’s largest sugar refiner, on Friday raised its forecast of operating profits in its current financial year as environmental concerns have boosted demand for biofuel ethanol enough to partially offset weakness in the sugar sector that is slumping due to a global glut of the sweetener.

“We are seeing robust demand for bioethanol in several European countries,” a Suedzucker spokesman said. “In the current debate about protecting the climate, the message is getting through that bioethanol is a good method of reducing CO2 and dust emissions in cities.”

“We are hopeful this trend will continue. The sugar outlook is improved slightly but unfortunately the overall sugar market remains depressed.”

The company now expects group 2019/20 operating profits to reach 50 million euros to 130 million euros ($55.50-$144.3 million) against its previous forecast of zero to 100 million euros and 27 million euros operating profit in the previous year.

The main improvement will come from its CropEnergies bioethanol unit, now expected to achieve operating profit of 70-90 million euros, up from its previous forecast of 50-75 million euros.

Suedzucker now estimates its core sugar sector will post an operating loss of 200–260 million euros against its previous forecast of a loss of 200-300 million euros.

“We have taken measures on cost reduction (in the sugar sector) while we are seeing a moderate improvement in sugar spot market prices in Europe which is being reflected in new contracts we are signing,” the spokesman added.

Europe’s sugar producers are still suffering from the double blow of low sugar prices and European Union market liberalization that has exposed them to depressed world markets.

Suedzucker also warned it would see “a significantly negative impact” from business development of British commodity trading company ED&F Man Holdings in which Suedzucker has a shareholding of about 35%.

Suedzucker on Oct. 10 also posted a fall in earnings as sugar prices remained depressed. Germany’s second largest sugar refiner Nordzucker on Friday also posted a pre-tax loss of 12 million euros in the first half of its 2019/20 fiscal year.

The European Union liberalized its sugar market in 2017, ending its system of guaranteed minimum prices and protected production quotas. That gave European producers more freedom to expand and export but left them exposed to collapsing world prices. — Reuters

Shopping diplomacy

THE International Bazaar Foundation’s International Bazaar 2019 (now on its 53rd year) has a unique proposition: shop — and help bolster international relations at the same time.

BusinessWorld attended a preview of the bazaar’s offerings at the Department of Foreign Affairs (DFA) on Oct. 24. The Bazaar itself will be held on Nov. 24, from 9 a.m. to 7 p.m. at PICC Forums 1, 2, and 3. Tickets are sold at P150 and donor cards for P250. The tickets are available at Tesoro’s in Makati, at the Special Projects Unit of the old DFA building, and at the PICC gate on the day of the bazaar.

There will be 216 booths at the bazaar, representing 37 embassies and seven consulates. The Philippines will be offering horn accessories from Silnag and textiles from Habi and Kalakal, among other treats like Malagos chocolate.

The Indian embassy showed off jewelry and textiles, and Indonesia’s booth showed off batik items. The booths from both Australia and Argentina showcased snacks and wine. Spain’s booth showed off preserves and wine (a popular choice), while Switzerland’s booth offered chocolate, a fast-selling item during the bazaar.

The International Bazaar Foundation is traditionally headed by the spouse of the Secretary of the DFA, a space now occupied by Maria Lourdes Locsin, wife of Secretary Teodoro “Teddyboy” Locsin, Jr.

“I think what is different is that I have made it my mission to convince more of the foreign embassies to participate, number one,” said Mrs. Locsin. “Number two, is to talk to them and encourage them to lower their prices because I don’t want to appeal only to the market that’s on the high end.”

Asked how her committee curated the items for sale, Mrs. Locsin said that aside from accepting applications, they have also invited bazaar mainstays which are singled out by her staff when they attend bazaars around the country.

As for the booths from the other nations, she said, “The embassies have gone out of their way, like the way Australia has. They’ve contacted traders.”

The bazaar’s primary purpose is charity: among its beneficiaries this year are 41 scholars in colleges and universities in Metro Manila; the Ayala Foundation; Habi; Pilak Silvercraft; Our Lady of Peace Hospital; the Bogo, Cebu Provincial Hospital; the Missionaries of Charity; the Little Sisters of the Poor; Pasay city feeding programs; Steps Mission Foundation; and Sayaw Foundation.

However, is it also possible that the bazaar is a way to improve international relations? Mrs. Locsin agrees. “It does, because the wives are active.”

“When we come to meetings and we do activities, whatever conflicts there are, or disagreements, are forgotten; left outside the door, and we enjoy ourselves,” she said. “It helps our husbands also, because when we get to exchange ideas, you get to know the opinions of whatever country you’re talking to.”

Mrs. Locsin should have said it with a wink: She told BusinessWorld, “As they always say, the wives do have a different network, sometimes more effective.” — Joseph L. Garcia

T-bonds seen fetching lower rates

YIELDS ON reissued seven-year Treasury bonds (T-bond) on offer on Tuesday will likely decline amid strong liquidity and as the market reacts to the “sooner-than-expected” cut in banks’ reserve requirement ratios (RRR).

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

A bond trader said the debt papers’ average rate will likely settle within the 4.35-4.45% range.

Robinsons Bank Corp. peso debt trader Kevin S. Palma said in a mobile phone message on Friday: “Yields of the 7-year paper for reissuance would be lower versus the last time it was auctioned in September.”

“Liquidity will be abundant towards end of the year, due to a jumbo-bond maturity amounting to P197 billion in November, alongside decisive central bank actions to cut banks’ RRR effective November and December by 100 basis points (bp) apiece,” Mr. Palma added.

Last Sept. 10, the Treasury made a partial award of its P20 billion offer of reissued seven-year bonds, raising just P10.399 billion even as total bids amounted to P22.149 billion. The notes fetched an average rate of 4.503%.

At the secondary market on Friday, the seven-year bonds were quoted at 4.528%, according to the PHP Bloomberg Valuation (BVAL) Service Reference Rates published on the Philippine Dealing System’s website.

In a statement on Thursday,the Bangko Sentral ng Pilipinas (BSP) said its policy-setting Monetary Board (MB) decided to slash the RRR of universal, commercial and thrift banks by another 100 bps effective December, bringing total reductions to their reserve ratios for this year to 400 bps.

The MB said the cut will also apply to the reserve ratio of non-bank financial institutions with quasi-banking functions (NBQBs).

This latest cut will follow a 100-bp reduction in all banks’ RRR announced on Sept. 27 which takes effect next month and will bring the reserve ratio of universal and commercial lenders to 14% by December, while the RRR of thrift banks will stand at four percent.

Meanwhile, the reserve ratio of rural banks, which will go down to three percent next month, was untouched.

On the other hand, the reserve ratio of NBQBs will be cut to 14% by December.

Mr. Palma said the market also expects the US Federal Reserve to slash its benchmark interest rates again by the end of the month.

“Bond bulls may continue to take center stage and dictate the tempo of this auction due to slew of bond-friendly catalysts such as expectations of a Fed cut towards end of the month,” he said.

“Icing on the cake is the sustained downward trend in domestic inflation outlook for the rest of the year along with prospects of a GDP (gross domestic product) growth rebound in the third quarter,” he added.

The BSP’s Economic Research department reported last week that headline inflation in the third quarter slowed further to 1.7% from the three percent clocked in the second quarter.

In September, inflation slowed to 0.9% due to lower prices on food and electricity, taking the nine-month average to 2.8%, well within the central bank’s 2-4% target band for 2019.

The government will release third-quarter GDP growth data on Nov. 7, while inflation data for October will be reported on Nov. 5.

The government is set to borrow P220 billion from the local market this quarter, broken down into P100 billion in Treasury bills and P120 billion via T-bonds.

It is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of GDP. — Beatrice M. Laforga

Bring home all-new wheels with FOTON’s Fun Christmas Holideals

THINKING of a great Christmas present? ‘Tis the season to drive home a brand new ride as FOTON Motor Philippines, Inc. brings an early yearend treat with their Fun Christmas Holideals promo.

Running until Dec. 31, FOTON’s Fun Christmas Holideals showcases low cash-out and low monthly amortizations for the brand’s best-selling passenger and commercial vehicles.

Suitable for either transport business or family applications, the 15-seater TransVan is made available for as low as P78,000 DP, while the 16-seater Traveller and 19-seater Traveller XL vans are only for P98,000 DP. If you’re looking for a more luxurious and flight-like road hit, tap on the Toano Executive van and drive it for as low as P98,000 DP.

For first-time car buyers, even more compelling is the Gratour MiniVan, which is offered at a low monthly amortization of only P5,800. That’s like owning a fully-capable 8-seater van for as low as P194 per day — less than the price of a daily lunch and commute!

If comfort, power, capped off with style are the top stuff to consider, leading the charge are the brand’s SUV and brute pickup truck: the Cummins-powered Toplander and Thunder, both with an automatic transmission, available at P78,000 and P88,000, respectively.

Trucks best for micro, small, and medium enterprises are also up for grabs under Fun Christmas Holideals. The Gratour MT may be availed for as low as P5,143 while the bigger and wider Gratour TM can be bought for as low as P5,800 per month!

Apart from big savings, the all-in low down payment schemes come with free comprehensive insurance with acts of nature, chattel mortgage fee, a 3-year LTO registration plus accessories such as seat covers, matting, and tint. So beat the holiday rush and drop by the nearest FOTON dealership to revel in the Fun Christmas Holideals today.

FOTON is known as Asia’s largest commercial vehicle manufacturer including passenger vehicles, light-duty trucks, medium-duty trucks, heavy-duty trucks and heavy machinery. For inquiries, visit www.foton.com.ph or contact 0999-999-9998. You may also follow them on www.facebook.com/FOTONPhilippines.

DM Consunji tapped for NLEx-SLEx connector

NLEX Corp. said the construction of the first section of the North Luzon Expressway-South Luzon Expressway (NLEx-SLEx) connector road will begin by the second week of November.

“[On the] connector road, we had a final meeting last week with the contractor, so we made final our appointment of DMCI, D.M. Consunji as the contractor for the NLEX Connector Project Section 1. Because the connector project is divided into two sections, we will start with Section 1 first,” Luigi L. Bautista, president and general manager of NLEX, told reporters on Oct. 24.

Mr. Bautista said the contract with construction giant D.M. Consunji, Inc. will be signed next week.

“Next week, we will sign the contract and then the first bored pile that will be executed will be second week of November. So between today and the second week of November, DMCI will start preparing for mobilization.”

Mr. Bautista said the construction on the NLEx-SLEx connector road will take about 20 months.

The P23.3-billion 8-kilometer toll road linking the tail of NLEx Harbor Link Segment 10 in C3 Road, Caloocan City to PUP Sta. Mesa, Manila aims to provide an alternate route for trucks coming from the port area. From Sta. Mesa, vehicles traversing the expressway may connect to the Metro Manila Skyway Stage 3 through an elevated road.

Mr. Bautista said the Section 1 covers five kilometers of the entire 8-kilometer project. “That’s from Caloocan connecting to C3 all the way to España, so five kilometers,” he said.

NLEX has completed preliminary works on the project after a ground-breaking ceremony held last February. Preliminary works included the ground survey, finalization of design, and clearing of roads through tree cutting and relocation of informal settlers.

The target is to open the expressway by December 2021. Once operational, it is expected to reduce travel time from NLEx to SLEx to 20 minutes from the usual two hours. It will have a capacity of 35,000 motorists daily.

“We will open by phases. For the second phase, by next month we will start the bid process to select the contractor for Section 2. So maybe by around February next year, we would have appointed also the contractor for Section 2,” Mr. Bautista said.

NLEX is part of the Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp. (MPIC).

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