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Pair of aces: New BMW X1, 1 roll out

Text and photos by Kap Maceda Aguila

SMC ASIA Car Distributors Corporation (SMCACDC), local BMW distributor, recently brought in new versions of its entry-point vehicles in the 1 Series and X1 as part of its “Joyfest” event held at the Bonifacio Global City.

The 1 Series is an all-new iteration — its third generation since the nameplate’s launch in 2004. The model represents the Munich-based car maker’s aspiration to compete in the subcompact executive car segment, just as it is the most accessible way into the brand. Indeed, some 2.5 million units of the first two generations were produced.

On the other hand, the X1 gets a significant refresh at its presumed generational life-cycle midpoint. The SAV (sports activity vehicle, BMW’s parlance for “SUV”) first appeared back in 2008 through the Paris Motor Show — capturing attention in a then-burgeoning small ute-crossover scene. The production of the internally coded “E84” ran from 2009 to 2015, with the second generation taking over thereafter. The new X1, also known as the F48, now enters the country following its world premiere at BMW’s #NEXTGen event in Munich last June.

Both the 1 and the X1 are sourced from Germany, and are “proper” members of the distinguished family. Averred SMCACDC President Spencer Yu in an exclusive interview with Velocity: “BMW is about driving dynamics, hence our motto ‘sheer driving pleasure.’ That is one of our hallmarks — whether you have the 1 Series, 3 Series, 5 Series. It’s all about driving. That gives you maximum ownership pleasure and joy… On top of that, we have all the technologies in the car. The numbers don’t tell you the story.”

He describes the X1 as “extremely fuel-efficient and torquey,” something we confirmed for ourselves last year when we took the X1 for a drive in Munich.

SMCACDC brings in only one variant of the X1, the sDrive18d xLine. This is actually a result of listening to what customers want, averred Mr. Yu. “They’re after better value,” he said. “We could put in all the options that they want, but the price would be very high. We asked them what features are important and unimportant to them… basically, they’re looking for more comfort — for maybe when they get stuck in traffic.”

Conversations with customers have revealed the following as musts: electronically controlled seats, impressive wheels, a good stereo, and diesel power plant for SUVs. “And people prefer a standard seat over a sports seat,” added Mr. Yu.

During our aforementioned trip to Germany last year to get acquainted with the new X1, Birte Voorgang, an X1 product manager for the BMW Group, said, “Our target market is very youthful, modern, and active. They live in an urban environment, and like to go outdoors.”

Getting behind the wheel of a diesel-sipping xDrive25d for drive around the periphery of the BMW Group München Zeppelinstraße facility, we found the vehicle sprightly and communicative — a good portion of the 231hp and 450Nm reachable even low on the rev band. When on the rear seats, the X1 surprises with space and provides large windows to admire the undulating roads and unfurling scenery.

The vehicle has been “given a standalone visual presence tailored precisely to its character profile.” Immediately obvious is the larger kidney grille and new front bumper which, Ms. Voorgang averred, “(make) the exterior design even more expressive… We’ve integrated the new LED foglights into the now-bigger outer inlets… giving it a broader stance, (and) we have new LED headlights with a more modern hexagonal design.”

At the rear are “new stylistic features” such as an inlay in the body-color rear apron.

Another highlight is the driver-side exterior mirror, which features a puddle lamp to project an LED “X1” image (and aid in illumination, of course) when the car is unlocked. The X1 sports 18-inch Y-spoke Style 566 light alloy wheels with run-flat tires.

New contrast stitching adorns the instrument panel, which is black on its upper section and adopts the color of the interior upholstery lower down. A high-gloss interior trim is complemented with pearl chrome inserts, and the seats feature standard Sensatec upholstery.

A center-mounted 6.5-inch screen is operated and its features navigated using the BMW iDrive Controller. BMW ConnectedDrive comes standard, and rear passengers can access two USB-C ports located near the rear ventilation. The rear seats can be folded down in three sections (40:20:40) and can slide forward by up to 13 centimeters.

Under the hood of the sDrive18d xLine (the sole variant for now) is a four-cylinder engine that puts out 150hp and 350Nm through the front wheels. The power plant is mated to an eight-speed Steptronic transmission. The new BMW X1 is priced at P3.09 million and is available in Alpine White and black.

Meanwhile, the 1 Series comes in two flavors — the 118i Sport and M135i xDrive. Already on its third generation, the front-wheel-driven 1 is said to highlight “BMW’s signature driving pleasure and dynamic excellence with a significant increase in interior space.”

As with the X1, the 1 Series reinterprets the “iconic BMW features.” The kidney grille is larger, bestowing a more aggressive presence, and the two kidneys also merge in the middle. BMW swaps its classic bars with a 3D mesh design calling to mind racing cars. Full LED headlights are now more angular for a more modern, dynamic, and young look.

The 118i Sport is powered by a three-cylinder heart blurting out 140hp and 220Nm, harnessed through a seven-speed, dual-clutch Steptronic transmission. The more potent M135i xDrive earns its M prefix in various ways, starting with a more potent engine — a two-liter, TwinPower Turbo four-cylinder delivering 306hp and 450Nm accessed through an eight-speed Steptronic Sport transmission. BMW says this power on tap translates to a zero-to-100kph time of 4.8 seconds (0.1 second less when equipped with an M Performance package) and a governed top speed of 250kph.

The M135i xDrive is equipped with a newly developed mechanical Torsen limited-slip differential, “which gives the car an even sportier edge by creating a locking effect between the front wheels.” Launch Control mode is also available, which makes full peak torque available in first and second gear. The company says that M Sport steering makes the BMW M135i xDrive more agile and skilled on corners. M Sport brakes “offer excellent fade resistance and abundant reserves of stopping power at all times.” While the 118i Sport is front-wheel driven, the M variant features BMW’s xDrive, an intelligent all-wheel-drive system.

BMW reports that the third-generation 1 Series offers “significantly more space than its predecessor with little change to its exterior footprint,” with rear passengers benefiting greatly from the enlargement via 13 millimeters more elbow room. The rear cargo hold also grows from 360 to 380 liters. Folding down the rear seats increases this figure to 1,200 liters. The minimum width of the trunk also increases by 67mm.

Available only as a five-door, the all-new 1 Series is five millimeters shorter (at 4,319mm) than its outgoing sibling. Width is up by 34mm to 1,799mm; height (1,434mm) grows by 13mm. The wheelbase, at 2,670mm, shrinks by 20mm compared to the second-generation model.

As to why BMW brings the M version of the 1 Series, Mr. Yu quipped with a smile: “Actually, nobody needs it; but everyone wants it.”

The all-new BMW 1 Series 118i Sport costs P2.69 million and is available in Alpine White, Black Sapphire, Glacier Silver, and Mineral Grey. The BMW M135i xDrive is priced at P4.59 million and comes in Alpine White and Misano Blue.

All BMW models come with a five-year or 200,000-kilometer manufacturer’s warranty.

The executive also said that owners of BMW units 23 months old or younger who bought before the standard five-year warranty can buy additional coverage. “You pay us the warranty, and we pay the warranty to Germany. This is a BMW factory warranty — a factory extension.” Mr. Yu also promised that every BMW launched in the future will be covered by the extended warranty.

POGOs not in DFNN’s priority

DESPITE the boom in the Philippine Offshore Gaming Operations (POGO) industry in recent years, listed technology firm DFNN, Inc. is holding off on investments in the sector in the near term.

DFNN President and Chief Executive Officer Calvin Lim said last week the company is instead focusing on capacity building for online gaming and finding new revenue streams this year.

“POGO can be something… But in the near future, POGO seems to be really far away from us,” Mr. Lim told reporters in a media gathering.

“We are a listed company, so we have to abide by not just the SEC (Securities and Exchange Commission) rulings but the PSE (Philippine Stock Exchange) and a lot of other compliances as well.”

DFNN’s business is largely driven by the gaming industry at present, as it is where it pools about 80% of its revenues. The remainder is from non-gaming businesses, comprised mostly of financial technology (fintech).

Mr. Lim said DFNN currently does not have a POGO license, but its subsidiary Nico Bayan, Inc. signed a joint venture agreement with US-based lottery ticket reseller AutoLotto, Inc. to tap the opportunity.

Under the agreement, DFNN will provide live streaming services for AutoLotto’s POGO service provider Lottery.com. But Mr. Lim said this partnership is “still far from when we are going to launch,” as the parties are still fine-tuning the terms and conditions for the operations.

With this on hold, the growth of POGO for DFNN is seen to be delayed. He noted the government’s review of illegal activity among POGO operators and the Chinese government’s crackdown on POGOs are among the factors that dissuade DFNN as well.

What the company wants to focus on instead is research and development (R&D) for new ventures this year.

Mr. Lim said DFNN is exploring educational technology, which he describes as a trendy and long-term aspect of digitalizing education. He said it may start within the year and is expected to contribute significantly to DFNN’s revenues.

The company is also studying developing its fintech business further, as Mr. Lim said it is targeting to record a double-digit revenue growth from this segment for 2020.

DFNN is likewise investing in strengthening its core competencies in e-casino through the replacement of legacy systems, as it projects single-digit growth in this segment this year.

While Mr. Lim declined to disclose DFNN’s capex for 2020, he said the company is investing hundreds of thousands for R&D this year to improve the sustainability of the company.

DFNN booked a net income of P39.9 million in three quarters to September 2019, down 62% from a year ago as revenues slipped 2.7% to P957.9 million. Its shares at the stock exchange closed P3.66 apiece on Friday, down 43 centavos or 10.51%. — Denise A. Valdez

Hello Kitty collaborates with local bag brand Katre

LOCAL BAG brand Katre has unveiled its newest collection in collaboration with Sanrio’s mascot Hello Kitty, a launch that was more than a year in the making.

“Sanrio is always keen to support local brands and Katre is definitely one of the representatives. Katre is our first bag collaboration in the Philippines because we admire their dedication to leather and quality. The craftsmanship and passion made Katre became a sought-after leather goods brand and we hope our collaboration will bring excitement to both our fans,” Sanrio said in a statement.

Kat Erro, founder and CEO of Katre, said during the launch on Feb. 28 at their pop-up space in Greenbelt 5, Makati City, that the collection features the classic Katre silhouettes and, of course, Hello Kitty.

“They did not limit us or force us to go kawaii (‘cute’ in Japanese). When they did give suggestions, it was very considerate to Katre as a brand. We were able to keep our identity and learn from the process. Of course, they were very specific when it came to ribbon details, proper placement, and character colors,” Ms. Erro said in the release.

Ms. Erro said the communication was initially sent in December 2018 via Instagram and was sent by Sanrio Wave, Sanrio’s Asia Pacific subsidiary.

In 2019, the Sanrio mascot celebrated her 45th anniversary.

The collection includes five leather bags: the Camden tourist convertible (P14,500), the Hanover Midi (P13,999), the Thames camera bag (P10,500), the Picadilly print (P6,500), and the Bumbag 2.0 (P5,999).

Each bag features the Sanrio cat in different forms: from the simple signature Hello Kitty ribbon to its face on the bag. It also comes in various colors: black, red, off-white (or oat), and yellow.

“The collection is limited and until supplies last because we only have about 10 to 20 pieces per bag, per color,” Ms. Erro said during the launch.

The Katre x Hello Kitty collection is available at the Katre Glass House Pop-Up Store at the 3/F Greenbelt 5 and at shopkatre.com. — Zsarlene B. Chua

Rainforest Alliance to bolster program for cocoa certification

LONDON — The Rainforest Alliance said it was strengthening its cocoa certification programme after its Utz scheme came under fire last year for auditing lapses that resulted in it certifying cocoa farmed by children or grown in protected forests.

The non-governmental organizations (NGOs), which together with Utz audits most of the world’s certified cocoa, said it would invest an additional $7.1 million in its programme to improve transparency and strengthen audit rules.

The move follows a Washington Post report last year that found Utz-certified farms in Ivory Coast, the world’s top cocoa producer, were more likely to employ child labor than those not certified. The newspaper also found many Utz-certified farms were in protected forests.

“We are proud to announce a significantly stronger programme,” said Alex Morgan, chief markets officer at the Rainforest Alliance, which is based in New York and Amsterdam.

Utz merged with Rainforest Alliance in 2018 but remains a separate certification brand.

Chocolate companies like Mondelez, Mars Wrigley, and Hershey Co. have for years used cocoa certified by NGOs to meet consumer demands for ethical and sustainable sourcing.

Despite paying a premium for these beans, and charging consumers more for the chocolate, the certification system as a whole has had little success in stemming child labor and deforestation in the cocoa industry.

Western governments are now looking to legislate against the import of commodities linked to climate change and human rights abuses, putting companies, producing countries and NGOs under increased pressure to find solutions. — Reuters

Ready, aim, fire out!

Text and photos by Aries B. Espinosa

WHERE there’s smoke, there’s fire. And where there’s fire, there will most likely be a red Isuzu fire truck hard at work dousing the flames.

The Bureau of Fire Protection (BFP) just gave itself a much-needed boost in its daunting fire prevention campaign and modernization program, acquiring no less than 74 brand-new fire trucks comprised of 54 Isuzu FVR34, 20 CYZ52 heavy duty trucks, and three rescue trucks to be deployed to local governments across the country.

The 74 fire trucks have been specially equipped for firefighting by Korean-based body builders Hanseo (for the FVR34) and Nanomedics (for the CYZ52). The FVR34 has a 1,000-gallon capacity water tank, while the CYZ52 carries with it a 2,500-gallon tank.

The fire trucks were formally turned over Feb. 11 at the Camp General Emilio Aguinaldo military headquarters in Quezon City, with no less than President Rodrigo R. Duterte witnessing the proceedings.

In his speech, Mr. Duterte said, “I hope that with these fire trucks, the BFP will become more capable and effective in ensuring the safety of our communities and industries. I am confident that with your help, we can further boost our people’s confidence in their government and create an environment where our people can live and work in peace.”

IPC President Hajime Koso, who attended the ceremonies, said, “IPC, and the Isuzu brand in general, has always been on a mission to contribute to society by providing the most durable, reliable trucks — may it be for building bridges, airports, and this time in protecting the community against fire. With the upcoming Fire Prevention Month in March, we feel that these trucks may be in the right timing, as BFP now more than ever needs to continue to protect and serve the country against fire and other calamities.”

Isuzu Motors Limited (IML) General Manager Koichi Ito, who flew in from Japan to witness the proceedings, remarked, “Isuzu has always been supportive of providing the best vehicles to society. In Japan, in particular, you will see lots of private and government trucks produced by Isuzu, like these fire trucks and, recently, high-performance ambulances for Covid-19 prevention, which is why we are very happy the Philippines is doing the same.”

BFP Director for Logistics Senior Superintendent Jerry Candido told Velocity that the new fire trucks would be deployed to local governments that, up to now, don’t have their own firefighting vehicles.

“Since we started modernizing the BFP in 2009 with the enactment of the 2008 revised Fire Code of the Philippines, we had been updating our firefighting equipment. We have already ordered 191 brand-new fire trucks from Isuzu, to be distributed all throughout the Philippines. We are prioritizing the local fire departments that still use old fire trucks, and the almost 300 local government units with fire stations that still do not have any fire trucks.”

IPC Sales Division Head Joseph Bautista confirmed to Velocity that this would be the single biggest transaction between IPC and BFP. “We are very happy to support the modernization program of the BFP. These fire trucks not only provide the latest technology in firefighting equipment, but also makes sure that the firemen are transported in much more comfortable conditions,” he said.

The FVR34 16-tonner trucks are powered by the 6HK1TCL engine producing up to 240ps of power and maximum torque of 706Nm, while the CYZ52 33-tonners are powered by the Euro 5-compliant 6WG1TCN Isuzu direct-injection common rail engine that delivers maximum power of 420ps and maximum torque of 1,863Nm.

According to data provided by the Bureau of Fire Protection, a total of 2,269 fires in January and February this year were recorded. Since 1966, March had been declared Fire Prevention Month, as most fires have occurred during this period.

Adidas moves to reframe meaning of ‘fast’ with latest campaign

SEEKING TO give a new meaning to the word “fast,” adidas recently unveiled the “Faster Than_” campaign.

The thrust attempts to have “fast” go beyond as denoting mere “speed,” but also one invoking a personal feeling of self-betterment.

It is backed by a comprehensive new trend study from adidas Running, which saw insights gathered from 6,000 runners across the world with the end view of helping bring in a new era in running.

The trend study produced key findings which led adidas to come up with the Faster Than_ campaign which also aims to move people to pick up running and explore its positive effects.

Among the findings of the study is that two-thirds (66%) of runners run with a focus on personal betterment and transformation; 60% of respondents agreed that regular running provided mental health benefits, with 47% saying it allowed them to switch off from everyday stresses of modern life, and with 68% admitting it’s the only time their phones are left behind; and 18% of runners feel more inspired after a run, with 14% saying it gave them a sense of pride and 32% confessing to having increased confidence immediately after a run.

The social aspect of running was also revealed as part of the study, with 34% of those surveyed admitting they have met a future friend while running and 20% even meeting a future partner, showcasing the more unexpected social benefits that the activity can bring.

The positive repercussions of running were put to light as well, with respondents linking their post-running “high” to successes, including finally achieving something they had been putting off (34%), finding their creative flair and best ideas (30%), and even working up the courage to ask someone out on a date (17%).

To drive home what it wants to accomplish, the campaign spotlights a number of inspirational runners and their stories, which underscores that “fast” is a personal feeling whatever that might be.

Among the featured runners are Martinus Evans, a 300-lb distance runner who turned his doctor’s negative body comments and laughter into a motivational tool; Noah Lyles, the current Men’s 200-meter World Champion; emergency liver transplant survivor turned World Champion runner Ellie Lacey; and marathon legend Kathrine Switzer, who famously became the first female numbered entrant to the Boston Marathon in 1967 and was controversially pushed off the course by male runners but battled on and finished the race.

NEW SHOES
In conjunction with the campaign, adidas also came up with a range of shoes, which were made available in the country last week.

These are the 4D Run 1.0 shoes (P14,000), Ultraboost 20 shoes (P9,500), and SL20 shoes (P5,800).

The 4D 1.0 shoe features a uniquely designed and ultra-supportive 3D-printed midsole while the Ultraboost 20 provides maximum energy return in every step. The new lightweight SL20 design, meanwhile, has a cutting-edge Lightstrike midsole for explosive movements and enduring speed.

“‘Fast’ is, and always has been, a personal feeling: unique to whoever is experiencing it. Performance running will always be in adidas’ DNA with our rich history of 168 marathon wins, world records and personal bests,” said Alberto Uncini Manganelli, General Manager, adidas Running, in a release.

“For many people — including myself — the dream of a world record on the track or the marathon course probably isn’t something achievable. This does not disqualify me — or anyone else — from ever feeling ‘Fast.’ We want to celebrate that ‘Fast’ means something different to everyone — whether it’s the feeling of being faster than yesterday, the feeling of running for a cause, or the feeling of being faster than people expect. Through our diverse range of products and creations, we want to inspire as many runners as possible to go out and achieve their own personal feeling of ‘Fast’.” he added.

The 4D Run 1.0 Shoes, Ultraboost 20 Shoes, and SL20 Shoes (P5,800) are available at https://www.adidas.com.ph/.

Follow the Faster Than_ conversation on Instagram, Facebook and Twitter and using #FasterThan and @adidasrunning. — Michael Angelo S. Murillo

Court sides with FPIC on tax liabilities

THE Court of Tax Appeals (CTA) granted the petition of First Philippine Industrial Corp. (FPIC), canceling the firm’s alleged tax liabilities of P160.2 million because the waivers extending the period for its tax assessment for 2009 are void.

In a 45-page decision on Feb. 24, the court’s second division ruled that the waivers that were executed did not state the kind and amount of taxes to be assessed or collected, which should be indicated there.

“Such being the case, the same did not effectively extend the prescriptive period under Section 203 of the NIRC of 1997 on account of their invalidity,” the ruling penned by Associate Justice Cielito N. Mindaro-Grulla.

According to the Tax Code, internal revenue taxes are to be assessed within three years after the last day prescribed by law for the filing of return. However, assessment period may be extended if both parties agreed in writing.

The said waiver should indicate the nature and amount of tax due, the court said, citing jurisprudence.

The tax assessment of the Bureau of Internal Revenue (BIR) is void since the tax liability remains indefinite.

The court cited a Supreme Court decision which states that an assessment according to the Tax Code indicates due tax liability that is “definitely set and fixed.” Lack of which does not show the demand for payment.

“Correspondingly, the subject FLD-FAN (Formal Letter of Demand-Final Assessment Notice) hardly falls under the jurisprudential definition of a tax assessment under the NIRC, considering that it lacks a due tax liability that is there definitely set and fixed,” the ruling read.

“Clearly, the subject tax assessments are void, and thus, bear no valid fruit,” it added.

FPIC was found liable by the BIR for deficiency in income tax, value-added tax, withholding tax on compensation, final tax, fringe benefits tax, and documentary stamp tax.

The company claimed that the BIR’s right to assess it has already prescribed as the waiver FPIC executed is invalid and did not extend the prescriptive period. The assessment against it is also a clear violation of due process, making the assessment void.

The BIR, on the other hand, claimed that the waivers were duly executed by FPIC’s VP-Comptroller, and the company was not deprived of its right to due process. It also said that the bureau complied with auditing rules and procedures and petitioner’s right to speedy disposition of cases was not violated. — Vann Marlo Villegas

Brazil beef companies face reduced Chinese demand due to coronavirus

SAO PAULO — China’s beef imports will fall in the first half of 2020 due to fallout from the coronavirus outbreak, which is complicating the circulation of people and trade globally, Rabobank said in a report released on Thursday.

The situation may rein in Brazil’s meat export bonanza, as domestic food processors were among the biggest winners of additional Chinese food import demand after African swine fever has disrupted local meat suppliers since around August 2018.

The bank said China’s high inventory of frozen beef stored in local markets in preparation for the country’s Lunar New Year holiday was not used in January due to the outbreak of coronavirus, which caused restaurants to close.

Some could remain closed until March as people continue to avoid eating out, Rabobank said.

“Quick service restaurants may be impacted the least, while hotpot and full-service restaurants will see sales decline markedly in the first quarter,” the report said.

Citing uncertainties around to what degree coronavirus can be contained in the first quarter, Rabobank mentioned the possibility that the food service and tourism industries would remain disrupted through April or May.

“This lower sales volume means beef demand will be weaker than normal years in the first half,” the bank said.

Brazil’s total beef exports hit a record $7.5 billion in 2019 driven by strong demand from China, which accounted 26.6% of the volume exported by domestic beef packers, according to data compiled by meat association Abrafrigo.

If sales to Hong Kong are included, the combined volume rises to 45%. Some of Brazil’s main beef exporters include Minerva, JBS and Marfrig.

Still, after a 2019 marked by record exports and prices, the Brazilian beef industry “is experiencing a moment of rebalancing of supply and demand,” Rabobank said.

Brazil registered unprecedented price levels late last year due to strong beef exports, making the domestic market retract when the price increases reached the local consumer. Meanwhile the rainy season generated pasture growth, which lowers production costs but limits the supply of animals sent for slaughter, the bank noted.

“With [Brazil’s] domestic consumption still considered weak and China reducing purchases due to the coronavirus, abattoirs are unwilling to pay higher prices to attract increased volumes,” Rabobank said.

Although still 27% higher than in January 2019, Brazilian cattle prices in January dropped 9.8% from 211.97 reais per 15 kilograms in December, Rabobank data showed.

Aside from rise in the cost to buy cattle, rising animal feed costs constitute another challenge for Brazilian beef-packers, the bank noted. — Reuters

T-bill, bond rates to drop

RATES OF government securities on offer this week are expected to drop amid a sluggish global economic outlook due to emerging risks, which has prompted investors to flock to safe assets.

The Bureau of the Treasury (BTr) will offer P20 billion worth of Treasury bills (T-bills) on Monday, broken down into P6 billion each for the 91- and 182-day T-bills and P8 billion via the 364-day securities.

On Tuesday, the Treasury will look to raise P30 billion via five-year Treasury bonds (T-bonds) with a remaining life of four years and seven months. The tenor was changed to five years from the initial plan to offer three-year papers, which the BTr said is meant to spread its debts in different tenors after it raised P310.8 billion via three-year retail Treasury bonds last month.

A bond trader said over the weekend that rates of the T-bills will likely decline by at least 10 basis points (bps), while the yield on the five-year securities may range within 4.05-3.95%.

“Same reason (for both tenors), growth outlook just deteriorated for the global economy as travel restrictions, work stoppages and less discretionary spending sends global yields to drop on flight to safe haven,” the trader said in Viber message.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., likewise expects the T-bills’ rates to decline by around five basis points, while yields on the five-year notes may settle within 4-4.1% level.

The Treasury fully awarded the P20-billion T-bills it auctioned off last week as rates of the 91- 182- and 364-day papers declined to 3.003%, 3.365% and 3.787%, respectively.

For the five-year T-bonds, the tenor fetched a coupon rate of 4.25% after the issue was first offered on Oct. 16 last year. The BTr raised P20 billion as planned during that auction.

At the secondary market on Friday, the five-year notes were quoted at 4.117%, while the rates for three-month, six-month and one-year securities were at 3.076%, 3.407% and 3.846%, respectively, based on the PHP Bloomberg Valuation Service Reference Rates.

Mr. Ricafort said local benchmark yields were again mostly lower week on week as benchmark yields in US and globally continued to decline.

He attributed this to “increased global market risk aversion with the huge sell-off in US/global stock markets and some shift to the safest assets such as US Treasuries/fixed-income markets amid lingering concerns that the coronavirus (COVID-19) could spread to other countries worldwide and could further slow down global economic growth.”

As the number of infected cases continue to rise and spread across the globe, the Philippine government has imposed temporary travel bans to most affected countries in an attempt to contain the COVID-19.

The most recent one was a ban on Filipino tourists going to South Korea imposed late last week after confirmed cases there shot up. Authorities have earlier imposed temporary travel bans to and from mainland China, where majority of cases were recorded, as well as for Hong Kong and Macau.

COVID-19 has killed more than 2,900 and infected over 85,000 people across the globe, with majority of which in China.

The World Health Organization recently placed the risk and impact of the new disease, which has yet to have an antidote or vaccine, at a “very high” global level.

Think tanks and economists have said the impact of the disease will likely drag global economic growth as attempts to contain it, such as travel prohibitions, and growing fears of contracting it have stalled economic activities for affected countries.

Back home, the country’s businesses were not immune as affected businesses reported a slowdown in sales and demand. Philippine Airlines announced last week it will likely lay off 300 workers as part of its business restructuring plans to recover business losses.

Mr. Ricafort said the market will also take its cue from February inflation data due on March 5, as this could affect local interest rates.

The Treasury has set a P420-billion local borrowing program this quarter, broken down into P240 billion in T-bills and P180 billion via T-bonds.

The government plans to raise P1.4 trillion this year from local and foreign lenders to plug its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — Beatrice M. Laforga

A hot car for the hottest place on earth

Text by Angel Rivero; Photos by Jakob Kurc

THERE’S a strange kind of beauty that one can admire in the barren expanse of Death Valley National Park. It is the largest national park in the USA’s lower 48 states — offering beyond three million acres of protected wilderness, with some parts accessible via approximately 1,000 miles of road. Death Valley’s national park status was established on October 24, 1994, and the park’s borders run from California to Nevada. As the name alludes, this is a land of extremes — the hottest, driest, and lowest national park there is.

Why then, should one even care to visit a land so dry and harsh to life? Well, in my opinion, for that very reason — it is otherworldly and almost absent of life.

Well, almost.

As we all know, life is resilient and fascinating, with creatures managing to survive in the harshest of conditions. There’s one depicted in one of our favorite childhood cartoons — the road runner. It is also only here that one can find the Devil’s Hole pupfish, the world’s rarest fish, able to withstand high salinity and high average temperatures.

Inevitably, there are dangers when visiting this place — primarily related to heat stroke and dehydration. Therefore, as a rule of thumb, it is important to choose the appropriate season for visiting, based on your tolerance of high temperatures. One may also choose to visit the sights found in areas of higher elevation (and relatively milder temperatures). Otherwise, all visitors just need to be vigilant and to bring plenty of drinking water. More sensitive people can choose to stay within the air-conditioned shelter of their car.

Which brings me to declare how important it is to choose a comfortable and mechanically reliable vehicle for visiting a place like this. Mine was the Lexus GS 450h — a hybrid version of the conventional GS sedan — particularly because the Lexus badge is a fail-safe guarantee of superior vehicle comfort. In this case, it was a premium I did not want to compromise for a rather logistically tricky adventure.

A vessel that exuded the Lexus brand’s legendary refinement, the GS 450h proved impeccably quiet, comfortable, and luxurious on the inside. The seats were wrapped in soft, fine leather, and the seat cushions had perforations that could ventilate or heat your behind, based on your climate control settings. Both front seats offered 10-way power adjustments, and I loved the thoughtful thigh support as my legs tend to feel uncomfortable after long driving hours without them.

The GS 450h uses a 3.5-liter V6 engine mated to a hybrid CVT; in my opinion, it is one of the most fuel-efficient luxury sedans available. Fuel consumption begins to matter a bit more when you know you’re traveling large distances; and it also helps to know that while admiring nature, you’re keeping your carbon footprint at bay.

The Lexus GS 450h is a well-rounded and attractively priced rear-drive hybrid sedan that pampers with the accoutrements of the GS while offering the generous torque of a hybrid drivetrain.

The car demonstrated versatility with three easily interchangeable drive modes that varied the throttle input and steering response, depending on the selection: Eco, Normal, or Sport. It also had great forward visibility; and did very well in the darkness of the desolate landscape, with its intelligent, high-beam headlights.

Among the sights one must certainly not miss while visiting Death Valley are the Mesquite Flat Sand Dunes. It is easy to reach, and is practically the only place where sand boarding is allowed in the park. Revel at, and take pictures of, the smooth dunes that rise up to a hundred feet high from the flat. And if you’re lucky, listen to the songs of the sand (yes, they sometimes sing) if you’re high enough on a dune cliff, and the wind comes blowing the sides.

Next, do not fail to walk the lowest point in North America, Badwater Basin, at approximately 282 feet below sea level! The basin is so low, that it serves as the final catch of rainwater that erodes minerals dissolved from surrounding rocks. The result? A surreal, thick layer of salt on the valley, as if it were snow — salty snow.

Then there’s Devil’s Golf Course, except that it isn’t a golf course at all. It’s a bizarre, vast, rugged terrain that looks like it was tilled by some behemoth, and then sprinkled with salt. The salt crystals have hardened around the edges of the soil, that they’re actually sharp and can easily slice through skin. It’s tricky and evil; only the Devil could play golf here.

Zabriskie Point, with amazing vistas of golden-colored badlands with chocolate marbling, is best viewed and hiked under the gentle, morning sun.

One of my ultimate favorites in this park, however, is Artist’s Drive — a one-way, nine-mile drive that tours you through some absolutely beautiful, multi-hued hills. It is as if an artist painted a masterpiece on them. The truth is, they’re actually oxidized, natural mineral deposits — so mother nature was the true artist here. Do not miss at all cost.

Finally, you must know that Death Valley has some of the darkest skies accessible to modern man, far away from light pollution. It is actually rated as one of the premier night-sky viewing points of the world. Go stargazing when there’s a new moon. You’ll practically be able to view our beautiful Milky Way, and perhaps even realize how insignificant we really are in the vastness of the universe.

Denial of Nokia’s tax refund claim affirmed

THE Court of Tax Appeals (CTA) affirmed the denial of the P24.9-million tax refund claim of Nokia (Philippines), Inc.

In a four-page resolution on Feb. 20, the court, sitting en banc denied for lack of merit the motion for reconsideration of Nokia for not raising “meritorious argument.”

“In sum, petitioner failed to raise meritorious arguments to warrant the reconsideration of the assailed Decision. Hence, the denial of the same is in order,” said the resolution penned by Associate Justice Juanito C. Casteñeda, Jr.

Nokia is claiming refund or issuance of tax credit certificate allegedly representing its unutilized creditable input value-added tax (VAT) allocated to its zero-rated sales for 2012.

The court’s third division in October 2017, denied for insufficiency of evidence the petition of Nokia, saying that the company failed to establish that it is a VAT-registered entity.

The court en banc in its decision in August last year affirmed the decision and resolution of its division.

Nokia maintained that its alleged Certificate of VAT Registration, Exhibit P-34, should be considered by the court because it is a “certified faithful reproduction of its original and a public document which is self-authenticating.”

However, the appellate court affirmed that it cannot be considered, noting that the court in division did not commit error when it found that the evidence was not admitted since it was not identified by a competent witness during trial. The court in division also said that it was not a certified true copy as it was a “mere color-printed scanned copy.”

The court also said even granting that the evidence is a public document, which does not need to be identified, it will still be rendered inadmissible for not being a certified copy issued by a public officer with its custody, as stated in the Rules of Court.

“Hence, considering that petitioner’s Exhibit ‘P-34’ is not a certified copy issued by the public officer in custody thereof, the same cannot be accorded any probative weight,” the court said.

According to the court, to be entitled for refund of excess of input VAT traced to zero-rated sales, the taxpayer should be VAT-registered and engaged in zero-rated sales. The input taxes should have been paid, are not transitional input taxes, and have not been applied against output taxes. The proceeds for the sales should also be accounted for in acceptable foreign currency in line with rules of the central bank.

The court also said that the input taxes cannot be directly attributable to the sales and are to be proportionately allocated based on sales volume, and the claim was filed within two years after the close of the quarter when the sales were made.

Associate Justices Erlinda P. Uy, Cielito N. Mindaro Grulla, Ma. Belem M. Ringpis-Liban, and Jean Marie A. Bacorro-Villena concurred in the decision while Presiding Judge Roman G. del Rosario, Associate Justices Catherine T. Manahan, Maria Rowena Modesto-San Pedro dissented. Associate Justice Esperanza R. Fabon-Victorino was on leave. — Vann Marlo Villegas

Shanghai Fashion Week to go ahead online as virus spreads

BEIJING/SHANGHAI — Shanghai Fashion Week, initially postponed due to the coronavirus outbreak, will go ahead as scheduled online in a tie-up with Alibaba Group’s Tmall marketplace, its organizers said.

The event, which last October hosted eight couture shows in its Spring/Summer season, was among numerous trade and business events in Asia that announced changes to their dates this month due to the coronavirus.

The recent Fashion Weeks in London, Milan, and Paris have been hit by the absence of many Chinese attendees.

However, the Shanghai Fashion Week committee said on Thursday in a statement on their official WeChat account the event will go ahead as planned between March 24-30. It told Reuters that people can participate by watching livestreams.

It said it was currently accepting applications from brands and expects that more than 100 Chinese designers and brands will eventually display their 2020 Autumn/Winter designs and also use livestreaming to market their Spring/Summer products.

“We hope this new form will allow designers to try different ways to display their design and different channels to market and sell,” the vice-secretary of Shanghai Fashion Week Committee, Lu Xiaolei, told industry publication Business of Fashion.

Alibaba’s Tmall marketplace has cooperated closely with emerging Chinese designers and commercial brands in past years. Last year, a collection of Chinese brands showcased their products at New York, Milan and Paris’ Fashion Week events via China Cool, a project initiated by Tmall.

Selling through livestreaming, which sees telegenic and chatty hosts market products to consumers on e-commerce platforms, has surged in popularity among Chinese consumers in recent years. Besides Alibaba, JD.com and Pinduoduo also have livestreaming offerings. — Reuters

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