THE PGA Championship, one of golf’s four majors, has been rescheduled for Aug. 6–9 after being postponed due to the coronavirus pandemic, the San Francisco Chronicle reported on Sunday.
The event will remain at the city’s Harding Park course, the paper said.
The championship is run by the PGA of America, which did not immediately respond to a request for comment.
The PGA Championship was originally planned for May 14–17 but the PGA of America announced on March 17 that the event had been postponed due to the coronavirus outbreak.
The spread of the virus has prompted the shutdown of almost all sports events worldwide.
The first major championship of the year, the Masters, was scheduled to start this Thursday at Augusta National, but the club announced on March 13 that it had been postponed.
The US Open, scheduled for Winged Foot in New York from June 18–21, and the July 16–19 British Open at Royal St. George’s in Kent, are still officially on the schedule.
But it is believed an announcement on the postponement of the US Open will be made in the next few days.
The major championship organisers and the PGA Tour, which runs the weekly circuit of non-major tournaments, have been discussing a revamped schedule.
However, any plans to resume the professional circuit depend on the coronavirus subsiding over the next couple of months. —Reuters
LONDON — Formula One is in “a very fragile state” due to the coronavirus disease 2019 crisis and risks losing some of its 10 teams unless some big changes are made, McLaren boss Zak Brown warned on Sunday.
The season has yet to start, with two races — including the showcase Monaco Grand Prix in May — cancelled and six postponed so far.
The sport has already made some changes, including postponing a planned major technical rule change from 2021 to 2022 and agreeing teams will use the same cars next year but Brown said more was needed.
“Could I see — through what is going on right now in the world if we don’t tackle this situation head-on very aggressively — two teams disappearing? Yeah,” the American told the BBC.
“In fact, I could see four teams disappearing if this isn’t handled the right way.”
Brown said the economic and health situation meant it should not be assumed anyone would be lining up to take over any struggling teams.
“I don’t think the timing could be worse from that standpoint,” he added. “So I think F1 is in a very fragile state at the moment.”
McLaren last week became the first team to put staff on furlough while ratings agency Moody’s changed Formula One’s outlook to negative from positive.
Team bosses are due to discuss cost-saving plans on a call on Monday.
A $150-million budget cap, still well above the spending levels of some smaller teams, is due to come into force next year but Brown indicated there was a push for it to be reduced further — possibly to $100 million.
“You have everyone at $150 million, and the strong majority — including one of the big teams — willing to come substantially under $150 million,” he said.
There is also some discussion about a further postponement of the technical rule changes to 2023. —Reuters
The Department of Science and Technology (DOST) has partnered with a global community of Filipino tech experts to launch digital solutions addressing key challenges brought about by the Covid-19 crisis. First among these is RapidPassPH, a quick verification system that removes congestion, speeds up vital deliveries, and protects frontliners via contact-free verification through Metro Manila’s 56 checkpoints. This addresses the choke points that have sprung up as a result of the manual checking of credentials of “Authorized Persons Outside of Residence,” mandated by the government’s enhanced community quarantine measures.
As DOST Secretary Fortunato de la Peña explained, “RapidPassPH is a virtual identification system that utilizes QR code-based technology to provide ease for frontliners and priority vehicles. To use the system, “Authorized Persons Outside of Residence” must register online through the RapidPassPH app. A QR code will then be sent to them upon approval. This QR code must be printed and placed on one’s vehicle window for checkpoint personnel to scan using the same app. The system provides a safe, efficient, and contact-less method for manning our various checkpoints.”
Public-Private Partnership vs Covid-19
RapidPassPH was developed free-of-charge in partnership with Developers Connect (DEVCON Philippines), the largest community of Filipino IT professionals and tech enthusiasts, and the DEVCON Community of Technology Experts, a global volunteer-based community of Filipino experts working on digital solutions to address the challenges of the current pandemic. Tested in Mandaluyong on March 27, it was approved by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases the same day.
Two hundred Samsung A10 smartphones, donated by PLDT, will be distributed to checkpoint personnel to be used in verifying QR codes, recording the comings and goings at checkpoints, and providing statistical data to inform our nation’s response efforts.
Winston Damarillo, founder of DEVCON Philippines, assured that the centralized database is anonymized and that only an individual’s name and control number will be seen in checkpoints. “We’re only capturing what data we need.”
Damarillo also shared that they had tremendous support from private sector organizations for this initiative, and cited Microsoft Philippines, the PLDT Group, Amihan Global Strategies, and Talino Venture Labs as some of its industry stakeholders.
“Now, more than ever, we are seeing the importance of adapting to a more digital way of life,” said Department of Information and Communications Technology Secretary Gregorio Honasan in a press statement.
“RapidPassPH is aligned with the department’s mandate of privacy, cybersecurity and resilience,” he said. “Hundreds of DEVCON volunteers made this possible just three weeks after the quarantine. This proves to the world the triumph of the indomitable Filipino spirit.”
RapidPassPH is set to be deployed this week beginning Monday, April 6.
FORGET about the seedings, resorted to mostly out of convenience. For fans compelled to digest their required dose of hoops from the comfort of their homes, the NBA2K20 Players-Only Tournament aimed to deliver the needed adrenaline rush, and from a bevy of the sport’s households names. And given the quick turnaround time from conception to implementation, it has done extremely well based on the completion of the first round of matches. At the very least, it has managed to keep National Basketball Association stakeholders busy.
Make no mistake. The participants took the tournament seriously. Most went all out from the start, choosing strong squads in order to get the win. Never mind their inability to reuse a team from a list of eight. And, in hindsight, their decision was rewarded. Four chose the Bucks, and all four moved on to the quarterfinals following convincing outcomes. Meanwhile, only two stuck with the franchises for which they actually play; up against each other, the Clippers’ Montrezl Harrell and the Pacers’ Domantas Sabonis showed their loyalty, respectively, and the latter was promptly blown off the court — but not before complaining out loud how his in-game likeness “sucks! He really sucks!”
Parenthetically, the refusal of the protagonists to stick to their colors is telling. Andre Drummond threatened to opt for the Cavaliers, getting a “you know something I don’t” reaction, before opting for the Lakers and coming up with a 52-point victory over DeMarcus Cousins’ Nets. Devin Booker said “ehh, no” when asked if he wanted to use the Suns, instead going for the Bucks and prevailing against Michael Porter Jr.’s Lakers in convincing fashion. “Because @NBA2K has my player messed up,” he later tweeted in defense of his decision.
Perhaps the proceedings would have been more intriguing were the players inclined to be more vocal. The very first match of the tournament proved to be a relative snoozefest, with Kevin Durant and Derrick Jones Jr. hardly interacting. The mere handful of quotable quotes had the future Hall-of-Famer bemoaning the actions of the Bucks’ Ersan Ilyasova against his Clippers. “Hold up. They got Ilyasova out here?” He asked at one point. And then, after the 36th overall pick in the 2005 draft got a steal, he argued: “Come on, man. This is a fluke!”
Needless to say, the most entertaining contests featured competitors proficient with the Xbox controllers. And it was also no shock to find the good ones predisposed to doing a lot of trash talk. Patrick Beverley’s Bucks demolished Hassan Whiteside’s Lakers, even getting in a jab against his real-life foil. “Uh uh. This ain’t videogame [LeBron] James,” he said after a block. “He got some years on him now. He can’t just be jumpin’ all over the rim now.” And when he was told he had Giannis Antetokounmpo for “a cheat code,” he contended, “It ain’t Giannis that’s playing. I’m controlling him. So I’m just a cheat code. You can just call me The Cheat Code.”
Next up are set-tos between Jones and Harrell, Drummond and Beverley, Booker and Rui Hachimura (whose Lakers escaped with a triumph over Donovan Mitchell’s Nets on Monday), and the Hawks’ Trae Young and the Suns’ DeAndre Ayton. All are certified gamers, but the latter is especially proficient at NBA2K play. Then again, anything can happen with six-minute quarters in a one-and-done setting. Under the circumstances, going with the best team still available is sound. Bragging rights are at stake, so there can be no risking the present for a projected advantage.
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.
While the Philippines is blessed with many budding entrepreneurs offering innovative solutions, the reality is that most are lacking experience and connections. This is where incubators come in: providing a nurturing environment to help startups get off the ground through mentorship and access to resources and network.
More and more institutions are creating their own incubators—even yours included, perhaps. But before you launch, what important factors must you consider? Rosstyn Fallorina, QBO Innovation Hub’s senior program lead for ecosystem development, shares four:
Timeline
It may seem like an obvious consideration, but the simple act of determining the length of your program and setting deadlines can help you run your program more definitively and efficiently.
“You need to see the timeline of your program so you can see how long you can allot for your selection process,” Fallorina said.
Your target market
Different groups have a different set of needs, so it’s vital to pinpoint which one you want to help. Crafting a program for women entrepreneurs, for example, might take a very different direction from one that’s catered towards students.
Opening your program to a specific startup stage only could also help you hone in further. Early-stage startups often have more time and are less choosy with activities. But they also have less business experience and need more guidance. Mature startups lie on the opposite end of the spectrum, already having a clearer idea of their needs but unable to commit their time to things outside their core business operations.
When QBO decided to focus their program on mature startups, they made sure that it would mesh well with their work life. “We didn’t ask them to go to QBO every week so that they could update us and attend workshops or seminars, since we knew that they have a lot of other things to worry about,” said Fallorina. “We didn’t want to give a lot of responsibilities to them.”
Selection processes and methods
If all goes well and you do your research, you should be able to draw in a ton of startup applications for you to choose from, and nearly as many selection processes to choose among them with.
Whether it’s an online form, a panel interview, or a mix of both, what’s important is that your processes are designed to get what you’re looking for.
“For example, if we do a competition, we might just do an online assessment, choose the startups, and then they pitch to the partners or panel,” said Fallorina. “Or for a bootcamp, it can just potentially be one-on-one interviews. It really depends on your program and your needs as an organization.”
Your program’s strengths, gaps, and offerings
As the adage goes, “know thyself”—or in this case, know your program’s strengths and limitations. Doing so will not only guide your team but also the startups that you could potentially be helping.
“A lot of the startups throughout the process will be asking, ‘What can you help us with? Who can you connect us with?’” said Fallorina. “They’ll be selecting from different programs. This is one way for them to figure out, ‘Okay, this program is for me at my stage and my needs.’”
Ford partners with GE Healthcare to produce 50,000 ventilators 100 days
Ford Motor Company, in collaboration with GE Healthcare, announced today it will begin producing in Michigan a third-party ventilator with the goal to produce 50,000 of the much-needed units within 100 days.
Ford will provide its manufacturing capabilities to quickly scale up production, while GE Healthcare will lend its expertise and license the current ventilator design from Airon Corp. — a small, privately held company specializing in high-tech pneumatic life support products. GE Healthcare brought the Airon Corp. design to Ford’s attention as part of the companies’ efforts to scale production of ventilators quickly to help clinicians treat COVID-19 patients.
“The Ford and GE Healthcare teams, working creatively and tirelessly, have found a way to produce this vitally needed ventilator quickly and in meaningful numbers,” said Jim Hackett, Ford president and CEO. “By producing this ventilator in Michigan, in strong partnership with the UAW (United Auto Workers), we can help health care workers save lives, and that’s our number-one priority.” Ford will initially send a team to work with Airon to boost production in Florida, and by the week of April 20, will start production at Ford’s Rawsonville Components Plant in Ypsilanti, Mich., quickly ramping up to reach full production to help meet surging demand.
Ford expects to produce 1,500 by the end of April, 12,000 by the end of May and 50,000 by July 4 — helping the US government meet its goal of producing 100,000 ventilators in 100 days.
Seaoil gives free fuel to transport medical frontliners
Seaoil is giving a subsidy is for ambulances and vehicles of hospital frontliners handling COVID-19 cases. The fuel company is supplying free fuel to over 20 hospitals nationwide, including the Philippine General Hospital (PGH), the Research Institute for Tropical Medicine (RITM), San Lazaro Hospital, East Avenue Medical Center, and the Philippine Children’s Medical Center and the Philippine Heart Center (PHC), among others.
The fuel e-vouchers are given directly by Seaoil to the hospitals. These vouchers are honored in all open Seaoil stations nationwide.
Seaoil CEO Glenn Yu said that the company “continues to do its part in helping… frontliners conquer COVID-19. We are maximizing resources to (provide) assistance and aid for our employees and the community.”
The company previously extended P5 (gasoline) and P3 (diesel) discounts in selected stations across the country for those directly involved in maintaining health and security. The campaign benefits medical professionals and technicians, hospital and clinic staff, uniformed personnel of the AFP, PNP and Coast Guards, and LGU officials, health workers, and quarantine enforcers.
Hino’s Euro 4 AC Class II PUVs are ready to serve health workers and frontliners against the pandemic.
Hino x DoTr for free rides to health workers, frontliners
Hino Motors Philippines partners with the Department of Transportation for free shuttle services for health workers and frontliners in Metro Manila. Free rides using Hino’s Euro 4 AC Class II PUVs have been made operational daily until from 8 a.m. to 5 p.m. Qualified commuters only have to present their IDs for proper identification. The shuttle services prioritize health workers and frontliners, but citizens of the city who need to go to the hospital or other establishments for basic necessities may also ride the shuttle as long as they present their quarantine pass.
In compliance with the enhanced community quarantine guidelines, preventive measures against COVID-19 are implemented inside the PUVs such as social distancing, basic alcohol sanitization, and free face masks for passengers. The PUV units also undergo disinfection before and after deployment.
Said Hino Chairman Vicente T. Mills Jr.: “We thank and sympathize with our health workers and frontliners. We stand by our corporate mission of making the world a better place to live, by helping people and goods get where they need to go ― safely, economically and with environmental responsibility. Through this simple effort, we hope that our frontliners would know that they are not alone in this fight. We from Hino and the DoTr are with them.”
Boxes of surgical masks from Geely await distribution to hospitals.
Geely donates surgical masks to DoH
The Geely Holding Group, through the foundation of its chairman, the Li Shufu Charity Foundation, has donated through Sojitz G Auto Philippines (SGAP) 20,000 pieces of surgical masks to the Department of Health (DoH) to support the medical frontliners battling the COVID-19 pandemic. The company heeded the call of hospitals for medical supplies and personal protective equipment which health workers and frontliners desperately need to safely attend to COVID-19 patients.
As countries race to end the global coronavirus pandemic, Geely Holding Group said in a release that it is “looking forward to seeing the Philippines and the world win this battle very soon and bring every single person’s life back to normalcy.”
Shell Country Health Advisor Dra. Rose Rivera (third from right) leads Shell officials in turning over N95 face masks to Department of Health (DoH) Undersecretary Myrna Cabotaje. Also in photo are (from left): Shell country occupational health nurse Patrick Jeremillo, DoH Director Gloria Balboa, Assistant Secretary Kenneth Ronquillo, Usec. Gerry Bayugo, Usec. Rosette Vergeire, and Asec. Nestor Santiago.
UP-PGH, DoH receive N95 face masks from Shell Philippines
Shell Philippines has also stepped up to the plate by making much-needed donations of N95 face masks to those who most need them: frontliners in the fight against the virus.
“We learned of the dilemma of our frontliners, our everyday heroes, struggling to have their basic mask as part of their PPEs,” said Cesar Abaricia of Shell Philippines external relations. “We donated 5,000 face masks for UP-PGH (University of the Philippines-Philippine General Hospital) and DoH (Department of Health)… We salute all our health workers fighting against COVID-19.”
Mr. Abaricia added that the firm hopes to send out more PPE supplies, should it be able to source more, to those who need it most. The firm is also donating its Select Water to seven hospitals, and is leveraging its retail network to give “food packs, biscuits and water for medical workers, police force, and military personnel, and logistics drivers.”
Shell also gave to the Municipality of Pasacao, Camarines Sur toward the purchase of relief goods for indigent families, and is a partner of the Philippine Disaster Resilience Foundation in its pandemic response.
The company’s “Project Shelter” gives employees flexible working arrangements, and available available financial assistance instruments such as emergency loans. Shell is also providing virtual counseling services, as well as a 24-hour “Tele-Medicine” service to “minimize staff exposure to hospitals and clinics.” If needed, staff members can access “temporary accommodation and transportation support needed for business continuity.”
Meantime, the firm said on its website (shell.com.ph) that it has “business continuity plans in place to sustain (its) operations.” Malampaya is still online, providing “30% of Luzon’s power needs,” it continued, and promised to strive to continue providing “vital energy products to… customers and communities.”
For forecourt staff, Shell provides accommodations in its stations — plus transportation to and from work, face masks, and alcohol for when they are on duty and when traveling to and from work. Staffers are also provided meals when on duty; financial support is extended to those grounded by the quarantine.
I know what you’re thinking: Cars are polluters of Mother Nature, so environmental awareness and mobility don’t make a logical match. The evidence is plain to see during this difficult time of the enhanced community lockdown, when the metro skyline has been smog-free. Even as we consider that, when things get back to normal, we as car owners can still do our part to assure that we don’t clog up nature’s lungs again.
It starts with being more conscious about how we use and maintain our vehicles. Read on.
1. Use fully synthetic engine oil.
It definitely makes more sense from a green perspective to keep your old car running and well-maintained for as long as you can — especially if the car is giving you great mileage. A good start to good performance is the oil that you are using. The general belief is that fully synthetic, the purest type of synthetic oil, is the way to go. However, there is no global standard that grades synthetic oils. Each manufacturer has its own secret additives and processes. But the fact of the matter is that you don’t need to change oil as often when you’re using the fully synthetic kind. You can go as far as 10,000 kilometers before needing to replace it, and its use can promise reduced emissions, lower engine drag from greater resistance to thickening, and better all-weather protection. If you can afford it, get it. A higher oil grade gives better engine protection that may save overall costs in the future. Make sure your local shop disposes your used oil safely and remind them of the benefits to the environment when they do so.
2. Stop idling your car needlessly.
You can stop idling your car a long time as you warm up the engine. You’re just wasting fuel and releasing emissions. Modern cars take as little as two minutes to warm up. Avoid staying in the car with your engine running just to kill time or to meet a deadline as you work on your laptop. There are a lot of coffee shops waiting to accommodate you — post-ECQ, of course.
3. Wash your car smartly.
Going to the car wash a little less means conserving water. You know the drill; If you’re washing your car on your driveway, try not to let the water run from the hose too long. You can also try car wash alternatives such as the waterless option. A waterless car wash cleans your car, of course, without the use of water. Instead, it uses a pre-mixed spray detailer that you wipe on your vehicle’s surface. Alternating a traditional car wash and the waterless car wash should do the trick of properly cleaning your car and conserving water.
4. Clean your trunk space.
Remember, your trunk space is not a spare closet or storage compartment. Sometimes, people treat it as such. They either forget some of the items they keep in the back or they deliberately place items to save on garage space. Putting junk or needless stuff in the back of your car adds to its payload, which negatively impacts fuel economy. Plus, cleanliness keeps pests and bacteria away — as well as allergens that can get into the cabin.
5. Carpool with your friends and coworkers
If there are days that you can leave your car at home other than its “coding day,” do it. Carpooling with your friends and coworkers once or twice a week makes a lot of sense, and it reduces the wear and tear to your car (and saves on fuel, too). Of course, it’s also better for the environment.
LOCAL SHARES may decline this week as investors are expected to err on the side of caution with the expected extension of the Luzon-wide lockdown due to the lingering coronavirus disease 2019 (COVID-19) outbreak.
The benchmark Philippine Stock Exchange index (PSEi) picked up 4.66 points or 0.09% to 5,346.97 on Friday. It also posted a 1.53% climb on a weekly basis, marking the second straight week the main index closed with a gain.
Value turnover dropped 23% to an average of P5.35 billion week on week. Net foreign selling was trimmed 9% to an average of P703.82 million.
Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said activity at the local bourse last week was mainly driven by opportunistic investors looking for attractive prices.
He noted, however, that gains last week were smaller than the prior week’s 10.21% climb. “This shows that the bargain hunting has already been tempered, selling pressures are already creeping up as worries over the COVID-19’s economic impact weigh on investors’ sentiment,” Mr. Tantiangco said in a text message.
Luzon has been put under enhanced community quarantine for a month until April 13. But the government is now considering extending the lockdown as the number of COVID-19 cases continue to rise, both locally and abroad.
As of Saturday, the Department of Health reported 3,094 COVID-19 cases in the Philippines, while 144 have died and 57 have recovered. Globally, confirmed cases stood at more than 1.2 million and deaths at more than 64,700 as of Sunday afternoon.
“As local coronavirus cases continue to mount, concerns over a possible extension of the mainland Luzon enhanced community quarantine are likely to weigh on the market,” Mr. Tantiangco said.
“Investors will also continue to assess the pandemic’s adverse effect on the global economy primarily on our country’s top trade and investment partners with the latest evidence available such as the rise in US jobless claims and the contraction of manufacturing activities around the world,” he added.
US reported last week it lost 701,000 jobs in March, putting an end to 113 months of boom and fanning worries of a recession.
Mr. Tantiangco warned if there will be no positive drivers this week to counter COVID-19 worries, selling pressure is expected to dominate the market, which may lead to a breach of the 5,300 support level.
But the trading break on Thursday and Friday in observance of Holy Week may be a driver of the local bourse, online brokerage 2TradeAsia.com said.
“With the global environment on a standstill, this would be a good time to reflect on investment strategies. Long-term positioning is a must if one were to ride on a V-shaped recovery, once emotions tied to COVID-19 ebbs,” it said in a market note.
2TradeAsia.com is putting immediate support for the market at 5,000 and resistance at 5,500. Mr. Tantiangco is putting the next support at 4,850 and current resistance at 5,700. — Denise A. Valdez
Shipping and logistics provider 2Go Group, Inc. will convert two of its vessels into “quarantine ships” for returning seafarers and other overseas Filipino workers (OFWs), the Transportation department said.
“2GO Shipping has agreed to convert two of its ships into ‘quarantine ships’ that can serve 1,500 patients and will be operational by next week,” the Department of Transportation (DoTr) said in a statement on Sunday.
The department said more shipping companies have expressed their intention to join the initiative.
“The DoTr has been continuously reaching out to various shipping companies to seek their support for the project. A lot of them have already signified their intent to make use of their ships as floating quarantine facilities. We are grateful that more of them are expressing their willingness to cooperate with the government during this very critical situation,” DoTr Undersecretary for Administrative Service Artemio U. Tuazon Jr. said.
For his part, DoTr Secretary Arthur P. Tugade said: “Most hospitals in Metro Manila have already pleaded for help in attending to COVID-19 patients. Some of them can no longer accept more patients due to overcapacity. And that is what we are trying to address here. We will deploy these ‘quarantine ships’ to help our hospitals, our health workers, and our countrymen.”
President Rodrigo R. Duterte signed into law on March 24 Republic Act No. 11469, or the Bayanihan to Heal as One Act, authorizing him to exercise powers “necessary and proper” to fight the spread of the coronavirus disease 2019 (COVID-19).
The law states that “when the public interest so requires,” the President can direct the operation of any privately owned hospitals and medical and health facilities including passenger vessels and other establishments to house health workers; serve as quarantine areas or centers; and public transportation to ferry health, emergency, and frontline personnel and other persons; among others.
Mr. Dutere locked down the entire Luzon island on March 17, suspending classes and public transportation to contain the COVID-19.
The so-called enhanced community quarantine, which bars people from leaving their homes except to buy food, medicine and other basic goods, seeks to slow the spread of the virus and prevent the collapse of the country’s health care system. –Arjay L. Balinbin
Universal Robina Corp. (URC) is donating film commonly used in food packaging to hospitals for use as protective material between patients and health workers.
In a statement Sunday, the Gokongwei-led manufacturer said it is distributing Biaxially Oriented Polypropylene (BOPP) films to hospitals dealing with coronavirus disease 2019 (COVID-19) patients.
It said the films will become an added measure to protect health workers from contracting the virus given the current lack of personal protective equipment (PPEs).
The film rolls are currently being used by the Philippine General Hospital Obstetrics and Gynecology department as a protective barrier in their triage, examination area, diagnostic area and operating room.
URC said it has also given film rolls to Philippine Heart Center and Batangas Municipal Health Office, and will be distributing to more hospitals in the coming days.
“We will do our best to help our communities during this difficult time, not only through keeping our products available for the people we serve, but also with initiatives from other parts of our value chain,” URC President and Chief Executive Officer Irwin C. Lee said in the statement.
Aside from aiding hospitals, URC is also donating film rolls to its sister company Robinsons Bank Corp. to be used as a protective barrier in bank branches. The film acts as a safety measure for employees in transacting with clients.
URC is one of the core units of JG Summit Holdings, Inc. It is the manufacturer behind food products like Great Taste Coffee, Magic Crackers, C2 Green Tea and Nova Multi-Grain Snacks.
The company booked earnings of P7 billion in the nine months to September 2019, up 3% year on year. Its shares at the stock exchange increased P1.50 or 1.48% to P103 each on Friday. –Denise A. Valdez
Increased demand for shelf-stable food products and expectations of their sustained demand during the Luzon-wide enhanced community quarantine (ECQ) led investors to buy shares in Universal Robina Corp. (URC).
A total of 10.11 million URC shares worth P1.03 billion were traded last week, data from the Philippine Stock Exchange (PSE) showed.
Shares in the Gokongwei group’s food manufacturing arm closed at P103 apiece on Friday, up 5.1% from P98 per share a week ago. The stock has declined 27% since the start of the year.
“Given the general market sentiment is weak amid the COVID-19 (coronavirus disease 2019) concerns, URC is one of those stocks maintained in the watchlist [last] week as investors expect that the company will receive consistency in demand for its product portfolio,” Charlene Ericka P. Reyes, officer-in-charge of trading and research at First Resources Management and Securities Corp., said in an e-mail.
“Consumers stocking up common staples, with URC having instant coffee, noodles and snacks among others, while the ECQ in Luzon is being implemented, is a clear driver of the company’s resiliency during the current situation,” she added.
Despite the temporary suspension of most commercial operations in Luzon, Ms. Reyes noted that URC will be able to continue its food production and distribution.
“The company ensured business continuity with their sufficient inventory and constant communication with suppliers to avoid supply disruptions, in addition to the eased quarantine rules of the DTI (Department of Trade and Industry) and IATF (Inter-Agency Task Force on Emerging Infectious Diseases) for the logistics of food manufacturers,” she said.
Jeff Radley C. See, analyst at Mercantile Securities Corp. was of the same view: “Consumer stocks are the ones at play right now, especially URC where the company is not that affected as people continue to buy its products.”
“There won’t be an impact in their (consumer stocks) financials as demand is bigger in times like these,” he said in a text message.
Since March 16, the entire island of Luzon has been placed by President Rodrigo R. Duterte under ECQ to contain the spread of COVID-19, limiting commute to grocery stores. Households have been stocking up on shelf-stable food items as well as local government units for their food relief packs.
Outside Luzon, Davao City has also been placed under a 15-day ECQ since April 4.
In a statement, URC has assured the public that their supply of its food and beverage brands, namely, Great Taste coffee, Nissin Cup Noodles, Magic Crackers, C2 Green Tea, Robina Farms meat and eggs, Baker John bread, and its agro-industrial products and commodities are sufficient.
Analysts noted that URC shares are on a bargain, as the COVID-19 crisis places a general downward pressure on local stocks.
“URC joined the list of most actively traded stocks [last] week as bargain hunters picked up its heavily battered shares upon visiting oversold levels,” Timson Securities, Inc. Trader Darren T. Pangan said in an e-mail.
In a separate interview, China Bank Securities Corp. Senior Research Associate Rastine Mackie D. Mercado said: “URC, along with other companies, are likely to be adversely affected by the ECQ. Moreover, expectations of slower consumer spending may place downward pressure on consumer companies’ profitability for the year, but those in the business of food and drinks may be less affected compared to others.”
First Resources’ Ms. Reyes said that URC’s growth prospects for the year remain intact despite the COVID-19 crisis. She expects URC’s 2020 net income to record a “high single-digit growth” as supported by the low inflation rate environment.
“With URC poised to take advantage of domestic demand from consumers, this should provide continued recovery in their domestic branded consumer foods (BCF) segment which should overshadow the weakness in their international BCF, including its exposure in China with their manufacturing facility catering to Chinese market and other countries in the region,” she said.
URC reported a 2.9% growth in its attributable net income to P7 billion in the nine months to September last year from P6.8 billion in 2018. Revenue from its branded consumer foods, commodity food, and agro-industrial units reached P99.8 billion as of end-September, up 4.8% from P95.2 billion in 2018.
This week, First Resources’ Ms. Reyes expects URC’s price to remain between P95 and P108.
“As long as its support at P95.00 holds, a quick rally is a possibility, as bullish momentum is still in play with the PSE index above 5,000,” she said.
Timson’s Mr. Pangan sees the stock’s immediate support level at P95 while its immediate resistance level at P120.
“If support holds, then we may see it move closer to its resistance level in the coming weeks,” he said.
THE central bank has ample space to further cut interest rates, as it seeks to shield the economy from the coronavirus disease 2019 (COVID-19) fallout.
Amid a “real risk” of a technical recession, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said that there is a “a lot of room for cutting interest rates and also a lot of room in cutting the reserve requirement.”
“Our decision will be dependent on what the actual inflation is, the inflation outlook for the next three quarters and what’s happening in the world economy,” he told ABS-CBN News Channel on Sunday.
A BusinessWorld poll of 11 economists held last week yielded a 2.3% median estimate for March headline inflation, closer to the lower end of the BSP’s 2-2.8% estimate.
The Philippine Statistics Authority will report March inflation data on Tuesday (April 7).
“There’s a downward trend [in inflation]. So how much can we cut? We have a lot of policy space. As you know, the interest rate was increased by 175 basis points (bps) in 2018 and we have only cut it so far 1.5%… So we can still have room for cutting,” Mr. Diokno said.
Last year, the central bank cut rates by a total of 75 bps. This was followed by another 75 bps worth of easing this year through the 25 bps cut in February and another 50 bps cut done in March.
This has brought down the overnight reverse repurchase, lending, and deposit rates to 3.25%, 3.75%, and 2.75%, respectively.
Meanwhile, the reserve requirement ratio (RRR) of universal lenders has been effectively reduced by 200 bps on Friday to 12% to give the financial market a liquidity boost amid the enhanced community quarantine (ECQ) currently imposed in Luzon.
For now, RRR of thrift, rural, and quasi-banks are maintained at four percent, three percent, and 14%, although the BSP said that they will also evaluate on bringing down RRR for the said financial institutions.
The Monetary Board has also authorized Mr. Diokno to bring down RRR by a total of 400 bps for the whole of 2020.
In 2019, the BSP slashed lenders’ reserve requirement by 400 bps in a bid to bring down its level closer to its regional counterparts before Mr. Diokno’s term ends in mid-2023.
RECESSION RISK
The BSP chief acknowledged the headwinds the economy might face given the looming risk of a technical recession which is defined as two consecutive quarters of negative growth.
“There’s a real risk that there will be a technical recession…I think Q2 and Q3 we might have negative growth…I think we can restart the economy in May so even Q3 may not be negative,” Mr. Diokno said.
Amid the pandemic and the Luzon quarantine, the National Economic and Development Authority said that gross domestic product (GDP) growth could settle between -0.6% to 4.3% in 2020, a major downgrade from the 6.5 to 7.5% growth target set by the government before the outbreak.
In 2019, growth settled at a below-target growth of 5.9%.
“We’re confident that the economy can take the adjustments,” Mr. Diokno said, noting that the country had 84 quarters of continuous growth in the past despite the Asian financial crisis and the global financial crisis.
“We have gross international reserves (GIR) equivalent to almost eight months of import, our peso is fairly steady so we don’t have any foreign exchange problems as our neighbors,” he said.
As of end-February, GIR stood at $87.606 billion, going beyond both the January level of $86.868 billion and the $82.78 billion traced in February 2019, according to BSP data.
Meanwhile, the peso has relatively recovered compared to its level at the onset of the Luzon ECQ. On Friday, it closed at P50.72 against the greenback, stronger from its P50.85 dollar close on Thursday as well as its flat P51 finish level a week ago.
“Really our concern is the public health issue and then we’ll take care, Secretary of Finance [Carlos G.] Dominguez [III] and myself will take care of the economy and also [Socioeconomic Planning] Secretary Ernesto M. Pernia,” Mr. Diokno said.
COVID-19 cases in the country rose by 76 on Saturday, its lowest pace of daily growth rate in a week, bringing the total to 3,094 cases, according to health officials. Meanwhile, COVID-19 has already claimed 144 lives while 57 recoveries have been recorded. — Luz Wendy T. Noble
Seaoil gives free fuel to transport medical frontliners
