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Toyota launches home delivery for vehicles

TOYOTA MOTORS Philippines Corp. is delivering vehicles directly to customers’ homes during the lockdown.

Car companies like Toyota have rolled out digital sales platforms while the lockdown declared to contain the coronavirus pandemic has limited the movement of consumers.

Toyota will now use its network of dealer outlets to deliver newly purchased vehicles directly to customers, the company said in a press release on Friday.

“Safety procedures will be properly observed by the dealership personnel to ensure a smooth and safe turnover of the customer’s brand new Toyota vehicle,” Toyota said.

The company currently has a virtual showroom that includes information about Toyota’s model lineup and pricing. Customers would then be endorsed to a preferred dealer.

Customers can also use the company’s virtual tool to book appointments and send out aftersales inquiries.

The company said that it continues to apply health safety procedures at its facilities. Motor vehicle sellers may operate at limited capacity under the modified enhanced community quarantine.

Vehicle sales in the country declined by 51.2% to 85,041 units in the first half of 2020 compared with the same period last year. Many car dealerships temporarily shut down due to stricter restrictions at the start of the lockdown.

The industry expects the year’s total sales to fall by 40% from last year, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said. — Jenina P. Ibañez

What’s Going On (08/11/20)

Online news satire show premieres

SMALL BUT TERRY RIDON, an online news commentary and satire show hosted by Infrawatch PH convenor Terry Ridon was launched on Youtube and Facebook Sunday night. The show is created and produced by lawyer Terry Ridon, director Victor Tagaro, and photojournalist Jes Aznar through Manila Shimbun TV. The pilot episode takes on President Rodrigo Duterte’s tirades on health workers despite calling for unity against the coronavirus pandemic in the State of the Nation Address. Mr. Ridon was former chair of the Presidential Commission for the Urban Poor and former legislator representing Kabataan Partylist. He is currently completing the General Management Program at the Harvard Business School after studying public policy at the Harvard Kennedy School. For his work in the 2018 film Yield, Mr. Tagaro was awarded the FAMAS Award for Best Documentary Film and Outstanding Achievement in Editing, and the Gawad Urian Award for Best Documentary. Mr. Aznar is an award-winning photojournalist working with several international publications such as the New York Times, Washington Post and for Getty Images. To view the pilot episode, go to https://www.youtube.com/watch?v=D_GE_wgSzpY or  https://web.facebook.com/smallbutterryridon/videos/605888590070739/.

New HBO series Lovecraft Country debuts Aug. 17

HBO’s new drama series Lovecraft Country debuts at the same time as the US on Monday, Aug. 17 at 9 a.m. exclusively on HBO GO. The episode will air on the same day at 10 p.m. on HBO. New episodes will premiere at the same time every Monday. Based on the novel of the same name by Matt Ruff, the 10-episode series follows Atticus Freeman (Jonathan Majors) as he journeys with his childhood friend Letitia (Jurnee Smollett) and his uncle George (Courtney B. Vance) on a road trip from Chicago across 1950s Jim Crow America in search of his missing father Montrose (Michael Kenneth Williams). Their search-and-rescue trip turns into a struggle to survive and overcome both the racist terrors of white America and monstrous creatures that could be ripped from an H.P. Lovecraft paperback. Meanwhile, HBO’s drama series Perry Mason has been renewed for a second season. Starring Emmy winner Matthew Rhys, the executive producers of the series include Robert Downey, Jr. and Susan Downey. The penultimate episode of Perry Mason Season 1 debuts next Monday, Aug. 3 at 9 a.m. exclusively on HBO GO and HBO, with a same day encore at 10 p.m. on HBO. The season finale premieres the following Monday, Aug. 10, at 9 a.m. Catch up on previous episodes on HBO GO. Based on characters created by author Erle Stanley Gardner, the drama series follows the origins of American fiction’s most legendary criminal defense lawyer, Perry Mason in 1931, Los Angeles. When the case of the decade breaks down his door, Mason’s relentless pursuit of the truth reveals a fractured city and just maybe, a pathway to redemption for himself.

The Steve McQueens release new EP

UNDER Umami Records, jazz quartet The Steve McQueens has released a new six-track EP called Tape Ends which features previously unreleased music from the band’s 2018 TAPE tour where they played shows across Singapore and Japan including the Tokyo Jazz Festival. Tape Ends treads a fine line between jazz, soul, and “all-out chaos,” according to a press release. Explaining the EP’s title, the group says “tape obfuscates, hides. Tape repairs, heals. Tape records, history. Tape ends.” Facing 2020’s tumultuous times with their unpredictable nu-jazz form, the four-piece group is currently penning its next album, The Observer. Slated for release in 2021, The Observer pokes at the culture clash between jazz traditionalists and the new vanguard. Upcoming releases from Umami Records include VANNA’s High Hopes (Ran Nir Remix) on Aug. 14, in which Berlin-based producer-songwriter Ran Nir turns VANNA’s indie-folktronica gem into a three-part story, with the main character as the acoustic guitar line traveling through worlds of hope, relaxation, and longing for change; Dominic Chin’s deeply personal song “Alone” on Aug. 21, in which the singer-songwriter lays bare his struggle with anxiety disorder; and, Blahza’s Bandz on Aug. 28, in which it raps about hustling, minding your own business, and keeping your cool when the chips are down to a trap/west coast/bounce/dirty south beat.

The Itchyworms to hold virtual album launch

THE Itchyworms will be hosting a virtual album launch to celebrate the release of their  fifth album, Waiting For The End To Start. A few hours before the nine-track album drops on digital platforms worldwide, the pop-rock outfit is set to debut the songs through an online listening and live commentary party, which will be streamed live via The Itchyworms’ official Facebook page on Aug. 17, (Monday), from 7:30 p.m. onwards. The Itchyworms will perform select cuts from the upcoming release. Waiting For The End To Start was conceptualized and recorded with the members of the band confined in their respective homes during the nationwide lockdown. Thematically, the songs are written as a reflection of their individual and collective experiences during the quarantine period. It also inhabits a more adventurous and relentless approach in terms of production and songwriting. The Itchyworms’ Waiting For The End To Start virtual album launch is presented by Sony Music Philippines, GNN Entertainment, and Linya-Linya.

Barbie Almalbis drops “Umagang Kay Ganda” music video

FILIPINA rock icon Barbie Almalbis hopes to encourage and inspire listeners to rise above the extraordinary times with the official release of “Umagang Kay Ganda,” the third single of her upcoming new album under Sony Music Philippines. “The current situation has made so many of us experience such a profound sense of loss, and it has also given us a rare chance to stop and reassess our lives and consider the things that we really value,” the pop-rock artist said in a statement. “I hope ‘Umagang Kay Ganda’ will be a blessing especially to our frontliners. It is our little way to say thank you for the selflessness that they have continually shown and the sacrifices that they have made to help us get through this together.” The new version of the song conveys the timeless appeal of the original, while exuding a warmer approach in terms of production details. The official release of Almalbis’ latest single comes with an accompanying music video that features scenes of the new normal, and also showcases the heroic deeds of frontliners and several acts of compassion and resilience from ordinary Filipino folks. The music video is also part of Magnolia Dari Creme’s campaign reminding the public that in extraordinary times as in the normal times, tomorrow always brings new chances for a brighter day.

AUB posts double-digit drop in Q2 net income

ASIA UNITED Bank Corp. posted lower earnings as it ramped up loan loss reserves. — BW FILE PHOTO

ASIA UNITED BANK Corp. (AUB) booked a double-digit drop in its consolidated net income in the second quarter on higher loan loss provisions amid the coronavirus pandemic.

AUB and its subsidiaries’ net earnings dropped 24% to P1.114 billion last quarter from the P1.461 billion in the same period last year, its unaudited financial statement filed with the bourse on Monday showed.

The bank’s total operating expenses, including provisions for losses, jumped 79% to P2.825 billion “mainly due to the 715% increase in provision for credit and impairment losses as the bank factored in the effect of the pandemic.”

“Significant elements of the group’s net income for the three- month period ended June 30, 2020 and June 30, 2019 came from its continuing operations.”

The lender’s net interest income rose 14% to P2.6 billion on lower interest expenses. Net interest margin stood at 4.57% as of June, up from 4.55% a year ago.

“Increase in interest income from deposits from banks and others were offset by the decrease in interest income from loans and receivables and trading and securities,” it said.

Its other operating income climbed 44% to P1.4 billion in the second quarter, buoyed by the 94% increase in trading and securities gains, but was tempered by the 35% decline in foreign exchange gains due to market volatility.

In the first half, AUB posted a consolidated net income of P2.3 billion, down 10% from a year ago, as the 18% increase in its operating earnings was partly offset by the P1.2 billion it set aside for loan loss reserves.

“Loans and receivables increased by 8%…to P171.7 billion as of June 30, 2020. Propelling the growth were commercial loans and other loan segments such as housing, auto, and salary loans,” the bank said.

AUB’s nonperforming loan (NPL) ratio was at 1.19% at end-June, up from 1.01% a year earlier. Its NPL coverage ratio stood at 118.4%, also higher than the 72.48% logged as of June last year.

Meanwhile, total deposits rose 10% to P230.3 billion from P210.2 billion in the first half, largely due to higher demand deposits.

Its net loan-to-deposit ratio stood at 74.52% as of June, down from 78.58% a year ago.

AUB’s total assets hit P289.011 billion as of June, up from the P251.67 billion logged in the same period last year.

Its return on assets and return on equity were at 1.7% and 13.9% as of June, respectively, down from 2.22% and 17.62% a year earlier.

The bank posted a common equity Tier 1 ratio of 13.81%, higher than the 13.34% posted a year ago, while its capital adequacy ratio was at 16.93%, up from 16.66%.

The bank’s shares dipped 3.43% to close P45.05 apiece on Monday from the Friday’s finish of P46.65 each. — B.M. Laforga

DMWAI unit tops off office building

ASEANA HOLDINGS, INC. recently topped off its newest office development in Parañaque City.

In a statement, the subsidiary of D.M. Wenceslao & Associates, Incorporated (DMWAI) said 8912 Asean Ave. building is on track to be completed by the first half of 2021.

Despite uncertainty brought by the pandemic, DMWAI Chief Executive Officer Delfin J. Wenceslao, Jr. is keeping a positive outlook on the construction and real estate industry.

“However, celebrating a milestone of one of our developments that is included in our five-year pipeline projects despite the challenges that we are currently facing is something that should not be overlooked. This only demonstrates the dedication, commitment and competence of our team and the trust that we have earned in the decades-long relationships and partnerships with our internal and external stakeholders, clients and vendors,” he said.

8912 Asean Ave. is a 15-storey office development along Asean Avenue, located across Ayala Malls Manila Bay. The project has around 69,000 square meters of leasable office and retail spaces with four levels of parking.

EuroPelikula features in Cinemalaya

SELECTED short films focusing on environment and climate change will be screened in EuroPelikula, one of Allied Festival partners of Cinemalaya, now ongoing in the Cinemalaya Philippine Independent Film Festival until Aug. 16.

The films are offered for free on the Vimeo platform.

A film festival presented by the European Union, EuroPelikula is screening A Sunny Day by Moroccan director Faouzi Bensaïdi, Hungry Seagull by Chinese director Leon Wang, Olmo by Italian director Silvio Soldini, Tuã Ingugu by Brazilian director Daniela Thomas, Kokota: The Islet of Hope by Craig Norris, Qurut by Shahrbanoo Sadat, In One Drag by Alireza Hashempour, and Tant de Forets by Burku Sankur and Geoffrey Godet.

A Sunny Day is a short film on how men and women survive under the impact of a changing climate, in a distant and near future, both fantastic and absurd. Hungry Seagull focuses on the lives of a family of seagulls living on an island not far from the mainland, and how they survive amidst the threat of offshore overfishing and the pollution of the marine environment.

Olmo is about an 80-year-old grandfather, and his grandson Giulio who read an article from a newspaper about melting glaciers, the greenhouse effect, methane and CO2.  Instead of going to school, the two go on an adventure looking for an old tree. Tuã Ingugu captures the relationship between the Xingu community and their river, and the emotions of one of them when he is taken to see Sao Paulo rivers.

Kokota: The Islet of Hope tells about a man who visits a tiny neighboring islet called Kokota, and tries to help after seeing the island teeter towards a collapse due to climate change and deforestation. Qurut is about a woman who cooks quruti, one of the most popular meals in the entire Afghanistan, especially in central Afghanistan. For some years people have been making less and less quruti as they struggle to feed their animals because the mountain pastures have dried up.

In One Drag tells the story of a man who leaves a building late in the evening to light a cigarette and smoke it in one drag. He casually flicks the stub away, and then all the cigarette butts in the city become alive. Tant de Forets is a short film based on a poem of Jacques Prévert which speaks of the irony of the fact that newspapers warn us about deforestation although they are made of paper themselves.

The EU signed a cooperation agreement with Cultural Center of the Philippines (CCP) this year, which immediately was translated to EuroPelikula, a platform to feature films from Europe at the CCP, but was unfortunately stopped due to the pandemic.

The Allied Festival section of the Cinemalaya Festival features selected shorts from international film programs, held in collaboration with the Japan Foundation, European Union, the Embassy of the Islamic Republic of Iran, and the Embassy of Mexico.

From The Japan Foundation’s Eiga Sai Film Festival, the films My Little Goat by director Misato Tomoki, and A Japanese Boy Who Draws by director Kawajiri Masanao will be screened.

From Iran, the film I am American by director Omid Mirzaei will be featured.

From Mexico, the film Bruma by writer and director Max Zunino will be shown.

In view of the COVID-19 situation, the 16th edition of Cinemalaya has migrated to the online platform Vimeo. For details, visit www.cinemalaya.org or www.culturalcenter.gov.ph, or contact the CCP Media Arts at 8832-1125 local 1704 to 1705 and the CCP Box Office at 8832-3704.  Check out the official CCP and Cinemalaya Facebook and Instagram accounts.

Rediscount facility untapped amid BSP’s easing measures

BANKS did not tap the rediscount facility of the Bangko Sentral ng Pilipinas (BSP) in July as policy easing measures have already boosted liquidity in the market.

“For the period covering Jan. 1 to July 31, total availments under the peso rediscount facility remains at P20.7 billion as there was no availment in July,” the central bank said in a statement on Monday.

Lenders last touched the facility in March and April for peso rediscount loans worth P20.7 billion.

This is lower compared to the P116.574 billion in loans from the facility recorded from January to July 2019.

Banks likewise left the facility untapped from November 2019 to February 2020.

The BSP’s rediscount facility allows banks to get hold of additional money supply by posting their collectibles from clients as collateral.

In turn, the banks may use the cash — in peso, dollar or yen — to disburse more loans for corporate or retail clients and service unexpected withdrawals.

The halt in rediscount availments is a sign of high liquidity in the market, said UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion.

“We know that liquidity has been high recently with the various monetary actions of the BSP since February to address the impact of the COVID-19 pandemic. Demand for the facility may remain subdued as long as liquidity remains high in the coming months,” Mr. Asuncion said in an e-mail.

The BSP slashed the reserve requirement of universal and big banks by 200 basis points (bps) to 12% in April to provide a liquidity boost during the lockdown. The move freed up some P200 billion into the financial system.

The central bank in July also reduced the reserve requirement ratios of thrift and rural banks by 100 bps to three percent and two percent, respectively, releasing about P10 billion in liquidity.

The BSP has also allowed banks’ lending to micro-, small, and medium-sized enterprises as well as to some large enterprises hit by the pandemic to count as reserve compliance.

AUGUST RATES
Meanwhile, for this month, all peso loans, regardless of maturity, will be priced at 2.75%, which is the lending rate of the BSP.

For dollar-denominated loans, applicable rates are at 2.24875% for all tenors.

Yen loans are priced at 1.94483% regardless of maturity. — Luz Wendy T. Noble

Roxas and Co. posts P195-M net loss

ROXAS AND CO., Inc. (RCI) reported a net loss attributable to equity holders of P195.12 million in the second quarter, wider by 13% compared with the previous year’s losses after the suspension of its operations due to lockdown protocols during the period.

The quarter’s net loss brings the company’s first-half losses to P341.92 million, an expansion of 35.9% from a year ago due to the effects of the Taal volcano eruption along with the business disruption from the quarantine measures to contain the spread of the coronavirus disease 2019 (COVID-19).

“The COVID-19 pandemic resulted in the temporary closure of all our hotel operations in Any Resort Tagaytay and Go Hotels in Metro Manila as well as the shutdown of the Roxas Sigma Agriventures, Inc. (RSAI) coconut processing plant in Tupi, South Cotabato,” the company said in its disclosure to the stock exchange.

RCI said its operating expenses for the first six months declined 9.5% to P168.46 million compared with P186.05 million in the same period a year earlier, as a result of the company’s continued efforts to cut controllable expenses.

Its consolidated revenues for the first half fell 50% to P206.25 million after the suspension of its hotel operations.

RCI said the Go Hotels resumed operations in mid-April but served as quarantine facilities for home-bound overseas workers while its RSAI plant reopened only in May.

Meanwhile, the company said it would proceed with its plans and projects to establish continued growth such as efforts to develop and increase processed coconut export sales and maximize plant capacity, and limit the land development of Hacienda Palico to the ongoing residential project in Nasugbu, Batangas in 2020.

“The company will be doing a reforecast of its directions and performance in order to determine if there is a need to provide for impairment losses,” the disclosure said.

RCI has interests in real estate, sugar and ethanol manufacturing. Some of its companies include RSAI, Roxas Holdings, Inc., and Roxaco Land Corp.

On Monday, shares in RCI fell 0.85% or P0.01 to close at P1.16 per share. — Revin Mikhael D. Ochave

Zadia’s first tower nears completion

EQUUS PROPERTY VENTURE, Inc., a subsidiary of Greenfield Development Corp., recently held a topping off ceremony for the first tower of Zadia in Greenfield City, Sta. Rosa, Laguna.

Construction of Zadia Tower 1 is being completed, with turnover set by 2021. Zadia Tower 2 is scheduled to break ground within the year.

The mid-rise condominium’s Towers 1 and 2 are already sold out, while pre-selling for Zadia Tower 3 started in January.

“We planted the idea of Greenfield City with the intention of providing spaces that give importance to a high quality of life. With the topping off ceremony of Zadia’s first tower and construction of our future developments in the process, we are happy to see the seeds we once sowed start to flourish and bear fruit,” Duane A.X. Santos, executive vice-president and general manager of Greenfield Development Corporation, said in a statement.

Greenfield City is a 400-hectare development in Sta. Rosa, Laguna.

How PSEi member stocks performed — August 10, 2020

Here’s a quick glance at how PSEi stocks fared on Monday, August 10, 2020.


Household spending plunges in Q2, shifts towards essential goods

Household spending plunges in Q2, shifts towards essential goods

Peso strengthens as Diokno signals steady policy stance

THE PESO strengthened against the greenback on Monday as the central bank chief signaled rates are likely to be maintained in the upcoming policy-setting meeting.

The local unit closed at P49.01 per dollar, appreciating by 3.10 centavos from its P49.041 finish on Friday, data from the Bankers Association of the Philippines showed.

Monday’s close is its strongest in more than three years or since it finished at P48.95 per dollar on Nov. 11, 2016.

The peso opened Monday’s session at P49.05 per dollar. Its weakest was at P49.06 while its strongest showing was at its close of P49.01 against the greenback.

Dollars exchanged dropped to $409.3 million on Monday from the $647.4 million logged on Friday.

The peso gained after Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said they do not need to raise rates at the moment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

This comes ahead of the Aug. 20 policy-setting meeting of the Monetary Board.

“Signals of no local policy rate cuts supported the peso,” Mr. Ricafort said in a text message.

Mr. Diokno said in a television interview on Monday there is “no compelling reason” to slash rates further following the 175 basis points in cuts so far this year.

“I don’t see a strong reason why we should have another policy cut,” Mr. Diokno said.

Rates on the BSP’s overnight reverse repurchase, lending, and deposit facilities are at record lows of 2.25%, 2.75%, and 1.75%, respectively.

Meanwhile, a trader said the peso strengthened on expectations of a continued rise in the country’s dollar reserves.

Gross international reserves stood at a record $93.32 billion at end-June, rising by a tenth from a year ago and by $30.5 million from its May level, BSP data showed. This has already surpassed the central bank’s $90-billion projection for the year.

For today, the trader expects the local unit to move between the P49 to P49.20 levels against the dollar while Mr. Ricafort gave a forecast range of P48.95 to P49.10. — L.W.T. Noble

Bargain hunting pushes benchmark index higher

THE MAIN INDEX started the week with gains as investors continued looking for bargain stocks following last week’s sell-off.

The bellwether Philippine Stock Exchange index (PSEi) picked up 84.90 points or 1.45% to close at 5,930.92 on Monday. The broader all shares index increased 45.84 points or 1.32% to end at 3,513.37.

“Bargain hunting spilled over to the start of the week as the latest (United States) employment report showed the economy added more jobs than expected last month…,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

The Nasdaq closed lower on Friday, as data showed a sharp slowdown in US employment growth and investors worried lawmakers would fail to agree on another fiscal stimulus bill to bolster the economy from a coronavirus-induced recession.

The S&P 500 and the Dow Jones index ended flat to slightly higher on the day.

With the benchmark S&P 500 index now about 1.5% below its record high, defensive sectors including utilities and real estate were among the gainers. Tech-related stocks, which have fueled a Wall Street rally since March, posted the biggest declines and helped push the Nasdaq down more than 1% during the session.

The United States reported adding 1.8 million jobs in July, its third straight month of improvement, to boost its slowing economy that saw a record 20.5 million job losses in April.

The Dow Jones Industrial Average rose 46.50 points or 0.17% to 27,433.48; the S&P 500 gained 2.12 points or 0.06% to 3,351.28; and the Nasdaq Composite dropped 97.09 points or 0.87% to 11,010.98.

Leftover optimism, as well as bargain hunting, brought the PSEi up on Monday, particularly from a push from the property sector.

“Investors picked up on (the property) sector after it had the biggest loss last week of 3.46% week-on-week,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message. The property index rose 72 points or 2.56% to 2,884.12 on Monday.

Most of the other sectoral indices also ended the session with gains. Holding firms grew 103.76 points or 1.73% to 6,076.56; industrials increased 107.34 points or 1.39% to 7,822.97; services added 15.94 points or 1.12% to 1,437.12; and mining and oil climbed 43.85 points or 0.75% to 5,856.25. The only index in red territory was financials, which shed 6.06 points or 0.54% to 1,115.65 at the end of session.

Monday’s value turnover of P4.88 billion was down from Friday’s P10.92 billion. Some 82.96 billion issues switched hands.

“Trading…remained tepid with value turnover of P4.88 billion only, lower than year-to-date’s average of P6.5 billion, indicating that some investors are on the sidelines waiting for the fresh strong catalyst to move the market,” Ms. Alviar said.

Advancers outnumbered decliners, 125 against 74, while 45 names ended unchanged. Net foreign selling dropped to P714.27 million from P6.78 billion in the last session. — Denise A. Valdez

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