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Ultra-luxurious hideaway in the middle of the city

IT’S EASY to blow P500,000 in a day. You can buy mounds of jewelry, buy out a store, or drop a downpayment for a car. Integrated entertainment property and rich people-playground Okada gives you a new way to spend P500,000 in a day, and we’re not talking about the casinos.

Last week, Okada launched its new villas: El Nido, Coron, and Cebu, located in the complex’ Pearl Wing. Guests partied away at the 1,400-square meter El Nido Villa, while the Cebu Villa was used to tour guests. The Coron Villa, unfortunately for us, was occupied by a very fortunate guest.

The Cebu villa, with 1,170 square meters of well-decorated space, has four bedrooms with seven beds, while the El Nido and Coron villas have five bedrooms and nine beds, all decked out with Rivolta Carminiagni linens. The villas boast of their own living rooms, 16-seat dining room with a minibar, state-of-the-art entertainment room (even karaoke) and spacious his-and-hers bathrooms. The bathrooms are lit with chandeliers by the pink marble bathtub. They also have smart toilets and Roberto Cavalli toiletries along the counters.

The villas have a private garden with outdoor patios, a private swimming pool, and a jet tub. They all have indoor gyms and a couples’ spa suite with a sauna. They have their own private access going inside the casino, parking area, and everywhere else in the resort.

The villas are equipped with a DigiValet system, a special iPad that allows guests to take full control of the room’s devices. Guests will also have access to a 24-hour butler service and a private chef who can prepare any type of cuisine.

The villas all have indoor gyms and a couples’ spa suite with a sauna.

For reasons of privacy, Julius Santos, Director for Sales and Marketing for Okada Manila, demurred from saying what any of their guests requested since they opened a month ago. “Anything that’s legal, we will do for the guest.”

The villas are available at an introductory price of P500,000, but the actual published rate is at P800,000 for weekdays, and P1 million during weekends. What guests will be paying for is the room with all its amenities, but anything else will come on top of the room price.

“I think our villas are priced very competitively for the size that you’re getting,” said Mr. Santos,

The three villas are just the beginning of several luxury suites about to be opened in Okada. Mr. Santos says that the original plans for the property include that 33% of the hotel would consist of suites. Suites that would compare to the size of the villas should be completed by a year, he said.

Speaking about how the price of the villas compare to the presidential suites of other properties, Mr. Santos said, “Hoteliers like to say they have the most expensive suite. That doesn’t matter if nobody pays for it.” — Joseph L. Garcia

Mexico studying avocado exports to Davao City

By Maya M. Padillo
Correspondent

DAVAO CITY — Mexico is exploring the possibility of exporting Hass avocados and limoncito, a citrus-like fruit, to Davao City, according to Mexico Ambassador Gerardo Lozano.

Mr. Lozano told Businessworld at a welcome dinner in the Marco Polo Davao Monday that he sees expanded exports for the fruit as an opportunity to strengthen trade collaboration beyond Metro Manila.

“The level of relations between the Philippines and Mexico is a very good one as you know we have a very long history of relationship since the galleon time. But unfortunately in some cases the relationship has been concentrated in Manila and now we want to diversify the relationship with Davao City where we have a consulate,” Mr. Lozano said.

“He described the limoncito as a type of “green juicy lemon that is that is from Mexico. In Mexico we (also) have avocado fruits year round,” he said.

Mexican produce is mostly exported to neighboring countries like the United States.

Mr. Lozano said Mexico’s strategy for strengthening trade will include sister-city arrangements, which will also identify opportunities for collaboration in technical, scientific and cultural matters.

“This is my first time in Davao and a good opportunity to have a first view of the city. I met people from the chamber of commerce and discussed some business opportunities between Mexico and Davao City,” he said.

“We have a new government in Mexico City and now we are pushing it again. The new city government took office two months ago… I am sure it intends to finalize sister-city arrangements with negotiations before the end of the year,” he said.

Mr. Lozano said he views the current level of trade between Mexico and the Philippines as below potential, and invited Davao’s business leaders to visit Mexico to identify areas where trade can be expanded.

“I am expecting to receive before the end of the year a business delegation from Manila from various sectors with most of them interested in the food industry of Mexico,” Mr. Lozano said.

Mexico’s Honorary Consul to Davao, Malou G. Monteverde said one possibility for collaboration is agricultural research, with the Mexican side also interested in dealing with a coconut pest known as “kukulisap.”

Ms. Monteverde said the Davao Fashion Design Council (DFDC) is also hoping to exhibit in Manila and also to the foreign community there.

FOTON displays new commuter vehicles at LTO Motor Show 2019

FOTON Motor Philippines, Inc. (FMPI), the exclusive distributor of FOTON vehicles in the Philippines, showed off its latest commuter vehicles in the 107th Anniversary of the Land Transportation Office in LTO East Avenue, Quezon City, last May 21 to 24.

FOTON showcased three workhorses built for various transport requirements of the Philippine market: first, the F-Jeepney as the brand’s entry for the government’s Public Utility Vehicle (PUV) modernization program, the utilitarian Gratour TM MPV designed to move people and cargo of small and medium enterprises, and the TransVan HR suitable for private and more luxurious transport services.

“The launch of our commuter vehicles is a substantial effort to move the Philippines toward an efficient transportation network that is in line with the standards of our government, commuters, and environment,” said FOTON Philippines President Rommel Sytin.

The F-Jeepney was derived from the brand’s best-selling light-duty truck, the Tornado 2.4C, with the rear body designed by Centro Manufacturing Corporation. It’s powered by an ISF 2.8S41 17V CRDi 4-cylinder, in-line, turbocharged Cummins diesel engine paired to a 5-speed manual transmission. It generates 116hp at 3,200 rpm and torque of 260Nm from 1,300 to 3,200 rpm, and belongs to FOTON’s lineup of Blue Energy Euro 4-compliant vehicles designed for cleaner and more powerful mobility.

It is equipped with stainless fixed bench-type seats that can hold up to 24 passengers — 16 seating and 8 standing. With a length of 5650 mm, width of 1828 mm, and height of 2615 mm, the F-Jeep is more spacious, providing maximized room for cargo and legroom. It has comparatively wider passenger doors, making ingress and egress much easier.

“The birth of the F-Jeepney is also FOTON’s way of supporting the government’s policy for economic and social development, and adapting its innovations and smart technologies to advance transportation efficacy,” Sytin added.

Aside from the essentials, the F-Jeepney is also equipped with air-conditioning, GPS navigation system, a CCTV camera, dashboard camera, Wi-Fi connection, and entertainment system to keep the passengers in comfort and connected while on the road. The middle entrance operates electronically, and supports cashless payments, too. These may just be the icing on the cake, but they can make a world of difference in improving the quality of commuting for passengers.

Representing the smaller people moving segment is the Gratour TM MPV. This vehicle is capable of carrying 14 passengers at the back and has a 1455-kg payload capacity. The side-facing benches can be folded up to provide additional cargo room. Powering the Gratour TM is a 1.5-liter DAM15R four-cylinder gasoline engine that produces 110ps at 6000 rpm and 142Nm of torque between 3000 and 4500 rpm and is connected to a five-speed manual gearbox.

Sytin noted: “Our main mission is to improve basic infrastructure and provide public transportation services to drive economic and social development, to enhance the Filipino livelihoods and sustainability, and to increase the country’s ability to compete.”

Specially designed for private transport, the TransVan HR uses the luxury-oriented Traveller as basis when it comes to its exteriors particularly with its high roof. It features a 16-seater configuration, dual air-conditioning, a full-fledged entertainment system, and power windows and door locks. It is also equipped with an Anti-lock Braking System (ABS) with EBD and Brake Assist for added safety. To ensure that the TransVan HR has the power to pull its bigger and wider body, it is equipped with a 2.8-liter turbocharged common-rail direct-injection (CRDI) 4JB1 engine.

“With these vehicles, commuting and transporting goods from point A to point B will be smooth, accessible and cost-effective, give value to the existing resources and move the country’s system toward a less-hassle transportation system, because that’s what we all deserve,” Sytin closed.

FOTON is considered to be Asia’s largest commercial vehicle manufacturer. It has a wide range of commercial vehicles, which include, but is not limited to, passenger vehicles, light-, medium-, and heavy-duty trucks, agricultural and heavy machinery. For more info, contact 0999-999-9998 or visit www.foton.com.ph and www.facebook.com/FOTONPhilippines.

Amway’s Paris style

By Zsarlene B. Chua
Reporter

AMERICAN direct-selling company Amway has brought to the Philippines the second collection off of its Artistry Studio line which takes its name and design cues from Paris. It features three eyeshadow palettes, cheek and lip duos, liquid lip colors, brow shapers, and a setting spray.

“Artistry Studio is all about helping beauty lovers have fun, express who they are, and ultimately treat themselves,” Amway Philippines Country Manager Maria Elenita Olmedo, was quoted as saying in a press release.

“[We aim to] attract the younger generation, that’s why we’re making it fun and playful and trendy,” Daniela Farnache, Amway Philippines’ Head of Market Innovation, told BusinessWorld during the launch on May 29 at Amway Place in Makati City

Last year, the line launched its first collection which was inspired by New York City and featured an on-the-go palette with eye shadows, highlighters and finishing powders; tinted lip balms; two-in-one lipsticks and eye sticks; an illuminating powder palette; and a three-in-one lash boosting mascara.

(The mascara — priced at P1,415 — is one of the best mascaras I’ve tried so far: one can twist the mascara wand to the desired size — full blast for really thick, long lashes or one can turn it into a mini wand to really get at those inner lashes or bottom lashes. The formula also does not smudge, clump or move around. It can also last 12-hour work days. It’s magic.)

This year, the focus in on the City of Lights as the brand took cues from “Parisienne’s minimal yet bold looks, lit-from-within skin and effortlessly styled hair,” according to a press release.

The collection’s art was created by French artist Adolie Day.

The collection includes three eyeshadow palettes, each with six shadows: Macarons, which features pastel colors, City of Lights which has bolder grays and blacks, and Sparkling Watercolors which has lighter shimmer shades.

All three palettes (P1,675 each) have shimmer shades which are completely fine if one prefers a sparkly look, but I confess that I had to pick up several matte shades from my own personal stash to provide a base for my eyeshadow look for the day. I would prefer a couple of matte shades especially since the release noted that the colors in the palettes were done so they can be used as “base shades, highlighter, color or contour,” shades.

But that is not to say that the products aren’t any good — they are very pigmented, especially the City of Lights palette which I’ve continued to use on and off for two weeks now, especially the icy white shade which is a good inner eye highlight, and the bronze shade which gives my lids a pop of color.

What I particularly liked from the line was the Cheek and Lip Duo (P1,265) which is available in three shades: Pantheon Peach (coral and light pink), Polaris Pink (hot pink and blush), and Rouge (dark red and pink).

The formula is creamy, pigmented, and very long-lasting. I’ve worn Pantheon Peach for an entire week and it has lasted longer than my current top shelf favorite from Generation Happy Skin Active, the On-the-Go Cheek Stick in Glowing. I didn’t like how the Cheek and Lip Duo applied on my lips though, as it is incredibly drying and patchy though it does last long.

The two products I felt ambivalent about were the brow shaper (P1,115) and the liquid lip (P1,190). From the liquid lipsticks, I tried the shade Notre Dame Nude, a brown with a hint of pink liquid lip that functions more like a gloss than a proper liquid lip. While the color was flattering on me, I have never been a fan of glossy lips.

Meanwhile, the issue I had with the brow shaper — though it applies well (I used the shade Creme Caramel, a medium ashy brown) — is that the brush was a pain to remove from its place. The entire packaging looks like the Eiffel Tower — cute — but the effort I had to use to pull out the brush from its scabbard was enough to throw me off. I also fear breaking everything off because unlike the other products’ packaging, this one feels a bit flimsy.

While not included in the Artistry Studio, I think the Amway Artistry Exact Fit Cushion Foundation All Day Cover SPF50 PA+++ (P2,275) deserves a special mention because it is the first cushion foundation that has worked on my dry, sensitive skin without issues. It has a dewy finish and stays until the end of the day even without using the Artistry Studio Setting Spray (P1,450).

Sadly, the cushion is only offered in two shades, light medium and medium.

Oh, the setting spray is good: the nozzle spritzes enough product on my face without drowning me and does its job of keeping the makeup on my skin even during the hottest day, though I would say that the makeup itself does a good job on its own even without the setting spray.

The Artistry Studio Parisian Style Edition is available at My Amway Place in Makati and Amway Distribution Centers. For more information, visit amway.com.ph or its corresponding social media sites.

PLDT in talks with Huawei, 4 others for 5G network equipment

PLDT, Inc. said it is expecting to secure its vendors for fifth-generation (5G) network equipment before the year ends as it targets the commercial launch of the advanced network by the fourth quarter of the year.

PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan told reporters last week the company is currently talking to five international technology providers as possible vendors of 5G equipment.

These companies are China’s Huawei Technologies Co., Ltd. and ZTE Corp.; Sweden’s Ericsson, Inc.; Finland’s Nokia Corp.; and United States’ Cisco Systems, Inc.

“We’re pilot testing several use cases in several areas where we have installed the plants,” he said.

“Hopefully by the fourth quarter pwede na ’yung Home, ’yung fixed wireless for the Home and Enterprise [Hopefully by the fourth quarter we can launch 5G for fixed wireless for the Home and Enterprise],” he added.

Last year, PLDT and its wireless unit Smart Communications, Inc. fired up two 5G cell sites located in Makati Central Business District and Clark Freeport Zone, where it said was able to record speeds of up to 700 megabits per second (Mbps). Technology partners Huawei for Makati and Ericsson for Clark provided the 5G radio and core equipment for the firing up of the sites.

Mr. Pangilinan said the company may eventually finalize a deal with about two technology providers for the commercial launch of 5G.

“Wala pa naman ’yung mobile gadgets. ’Yung standards wala pa rin [The mobile gadgets and standards for 5G are not yet here]. So…we might start with home/enterprise. But we have to ask, what are the relevant cities, customer premises equipment for home enterprise,” he added.

Mr. Pangilinan also noted PLDT remained in touch with Huawei after United States government placed the latter on a blacklist on national security grounds.

“We’re constantly in touch with them. They’re the suppliers of our 4G and some elements of our fixed network. Of course we raised the security issues with them. They promised to cooperate,” Mr. Pangilinan said.

There has been growing concern over Huawei’s role as a major supplier to 5G networks around the world, with some seeing the Chinese tech giant as a potential tool for espionage or network disruption.

Meanwhile, PLDT rival Globe Telecom, Inc. is scheduled to launch its 5G network to the home this week. It earlier said the next-generation network could provide speeds from 50 Mbps to 100 Mbps.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

T-bill rates may rise ahead of Fed

RATES OF Treasury bills (T-bill) on offer today are likely to move sideways with a slight upward bias as the market awaits the result of the Federal Open Market Committee’s (FOMC) meeting this week and the release of the government’s third quarter borrowing program.

The Bureau of the Treasury (BTr) is offering P15 billion worth of Treasury bills (T-bill) today, broken down into P4 billion in 91-day papers, P5 billion in 182-day debt, and P6 billion in the one-year securities.

A trader said T-bill yields may inch higher this week ahead of the US central bank’s policy meeting on June 18-19.

“T-bills yields for auction may move sideways slight upward bias from the previous auction. Market players wait for the FOMC meeting this week where statements of a possible monetary policy easing this year will be closely watched,” Robinsons Bank Corp. peso sovereign debt trader Kevin S. Palma said.

“The market’s also looking forward for the release of BTr’s third quarter borrowing program,” Mr. Palma added.

The Treasury borrowed P15 billion as planned at its T-bills auction last week, with bids from market participants surging to P53.6 billion, more than thrice the amount the government wanted to borrow.

Broken down, the government borrowed P4 billion as planned via the 92-day tenor as bids amounted to P7.8 billion. The average rate declined 43.7 basis points (bp) to 4.555% from the 4.992% logged in the previous auction.

The Treasury also made a full award of the 183-day T-bills as it accepted P5 billion as planned out of offers totalling P20.132 billion. The average yield dropped 47.7 bps to 4.923% from 5.4%.

For the 365-day T-bills, the government borrowed the programmed P6 billion out of the P25.655 billion tendered by banks. Its average yield also slid 42.9 bps to 5.069% from the 5.498% quoted in the previous offering.

Based on the PHP Bloomberg Valuation Service Reference Rates, the three-month, six-month and one-year papers were quoted at 4.642%, 4.935% and 5.213%, respectively, on Friday.

On the other hand, National Treasurer Rosalia V. De Leon said last week that the third quarter borrowing program will be lower than the P315 billion planned during the April to June period amid slow government spending seen earlier this year.

Ms. De Leon said the government has more than enough cash to finance the “sustained” higher spending for the next quarter or so.

Meanwhile, an analyst said demand for the T-bills could rise ahead of more scheduled cuts to banks’ reserve requirement ratios (RRR).

The Bangko Sentral ng Pilipinas (BSP) slashed the RRR of lenders by a percentage point effective May 31 to 17% for universal and commercial banks, 7% for thrift banks, and 4% for rural and cooperative banks, unleashing billions of pesos into the financial system.

The reserve ratios of big banks and thrift lenders will be reduced further by 50 bps each on June 28 and July 26 to finally settle at 16% and 6%, respectively.

The government is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of the country’s gross domestic product. — RJNI

Ottawa expands insurance for Canadian canola exporters amid China dispute

OTTAWA/WINNIPEG, MANITOBA — Ottawa increased the insurance coverage available for canola exporters, a government corporation said on Thursday, as it seeks to reduce trade risks amid a dispute with China.

China halted purchases of Canadian canola in March, citing pests in shipments by Richardson International Ltd and Viterra Inc. The move, coming as Beijing has also expressed anger that Canadian police had arrested a Huawei Technologies Co Ltd executive in December, has pressured canola prices.

China was the biggest canola export market for Canada, which is the world’s biggest producer of the crop used to make cooking oil.

Export Development Canada (EDC), a government corporation, will increase the credit insurance available to exporters by an additional C$150 million ($112.59 million) worth of sales, EDC Executive Vice President Carl Burlock said at a news conference announcing the change.

The insurance will be available for commercially viable sales contracts of canola seed, oil and meal, and will cover potential non-payment.

Burlock could not identify the total amount of credit insurance available for canola sales.

Reuters reported on Wednesday that Ottawa would boost its insurance program for canola exporters.

Pakistan and Bangladesh are two markets that canola exporters have expressed an interest in, Burlock said.

Dwayne Couldwell, senior merchandiser of oilseeds for Winnipeg-based Paterson Grain, said he had never used EDC insurance for canola sales because the premium exceeds the usual profit on a shipment.

“I’m fully supportive of the concept but unless it’s considerably different than the former EDC financing, it’s just too expensive for the profits we can generate on the export market,” he said.

EDC prices its insurance relative to the risk, Burlock said.

Spokespersons for Richardson and Viterra did not respond to requests for comment.

Canadian pork, soybean and pea exporters have also run into problems shipping to China. Agriculture Minister Marie-Claude Bibeau said at the news conference she was open to boosting credit insurance to commodities other than canola if needed. — Reuters

Nissan, Shell Fuels unite to deliver exciting customer initiatives

NISSAN, the Philippines’ third largest automaker in automotive sales, is partnering with Shell Fuels to give customers in the Philippines a chance to win free fuel for five years. The initiative is part of several customer-focused activities developed by the two global brands.

“Today, it’s all about the customers. It’s about giving them our best products and services — cars and fuels that work best together,” said Kit Bermudez, Shell National sales manager and marketing manager for Retail. “If you have an entry-level vehicle that needs fuel efficiency, we have Shell FuelSave. If you have a Nissan Patrol and need power and performance, we also have the Shell V-Power. There’s always a Shell fuel that works great with whatever your drive is.”

Nissan Philippines General Manager for Marketing Dino Obias said that this partnership will create significant impact for both brands, particularly recent with fuel price rises, through initiatives that show how Nissan and Shell can collaborate to make journeys even better for motorists.

“At Nissan, our customers always come first. And that is why we are supporting them by creating a retail campaign that gives them a chance to win free fuel for five years,” explained Obias. “Starting with this, we are subsequently looking forward to continuing our partnership with Shell in the months to come.”

Under the Shell-Nissan partnership, all customers who purchase a participating Nissan model via cash or bank purchase order of financing will be automatically entitled to join the raffle promo.

A customer will get a chance to win Free Shell Fuels with the corresponding prizes (whichever comes first):

• Five years or P500,000 worth of Shell Fuels

• Three years or P300,000 worth of Shell Fuels

• One year or P100,000 worth of Shell Fuels

This raffle promotion can be availed on top of all other existing or ongoing Nissan promotions from April 1 to June 30.

For more information on this offer, visit www.nissan.ph/latestdeals.

Physical therapy clinic introduces new way to heal

LOOKING for ways to better serve its clients and expand the services it offers, physical therapy clinic Almario Physio Team (APT) has come with a new program which it touts as an “error-free method” for treating recurring pain.

APT’s Prueba is an all-encompassing genetic profiling treatment program designed to optimize one’s health and well-being. It uses innovative diagnostics technology from the United States.

“Prueba is a physical therapy program based on a person’s DNA. This is a first in the country. Here we get insights from your genes and we use those to tailor-fit the program to how we can help you reach your health potential. It’s like customizing the program for a specific person,” Marianne Yee, a pioneer physiotherapist at APT and head of its training and research department, told BusinessWorld at Prueba’s media launch on May 30 at the clinic’s branch at The Infinity in Bonifacio Global City, Taguig.

The program aims to find out one’s underlying health problem on recurring pain on muscles and joints, which usually occur even after a patient has already taken medicines or when procedures were already done.

Using the results of the genetic analysis as “map,” Prueba combines pain management, weight management, and strength and conditioning in one program.

This helps patients, APT said, return to their productive lives and reach their maximum health potential, without worrying about constantly going back to their physiotherapy centers.

The Prueba Premium Program consists of four steps — identification (gene profiling), preparation of the body, enhancement, and maintenance — and makes use of machines like the Rehab Roller, Rehab Capsule, Vacuum Treadmill, Body Composition Analyzer, and Real Time Ultrasound Imaging (RTUI) for core muscles. APT’s physiotherapists are trained to use these, keeping in mind the mission of giving the most comfortable and pain-free experience for the patients.

“It saves you time, money, and effort as it assures results. It utilizes the most accurate of references which are your genes. And it is for everybody,” said Ms. Yee.

She was seconded by APT Chief Executive Officer Ayeza Almario, who highlighted that a program like Prueba is very apt nowadays.

“During our seven years in the physical therapy industry, my team has constantly been looking for how we can treat patients to prevent the recurrence of pain. It’s not because I don’t want to see them again but because I understand what they are going through,” said Ms. Almario.

“If I myself spend this much time and effort but still am unsatisfied with my results, what more our patients. I told myself that I want a map that will bring me to the right direction for my health. I want to share this map with our patients,” she added.

Ms. Yee said that for now the Prueba program is only available at the clinic in The Infinity BGC but they hope to bring it to the other branches in the future.

For more information on the Prueba treatment program and other APT services and programs, visit www.almariophysioteam.com. — Michael Angelo S. Murillo

Tanduay targets 10% sales volume growth this year

TANDUAY Distillers, Inc. (TDI) is targeting to grow sales volume by 10% this year, as it plans to expand overseas distribution of its products.

TDI Chief Financial Officer Nestor C. Mendones said the company is on track to hit its 10% sales volume target for this year. It hopes to boost sales to 22 million cases this year, from 20 million cases in 2018.

“For the first quarter, (sales volume) are ahead by five percent so hopefully we could continue to do that throughout the year,” he said during a briefing at the Century Park Hotel in Manila on Saturday.

Parent company LT Group, Inc. reported TDI revenues from liquor increased during the first quarter, “on the back of a 5% growth in volume.” This helped TDI’s net income surge 73% to P234 million in the first three months of 2019.

“Realistically siguro five percent increase… We’re happy with that, although we are trying to be aggressive by targeting 10% increase this year,” Mr. Mendones said.

TDI has seen lackluster second-quarter sales, as inventory from dealers is still high. But Mr. Mendones is optimistic sales will pick up in the third quarter, as sales typically peak during the first and third quarters.

However, TDI may face some headwinds as the incoming Congress is expected to restart discussions on a proposed hike in excise taxes on alcohol products.

Mr. Mendones said the higher excise tax would be “very detrimental” to local industry.

“What could possibly happen when excise taxes become extraordinarily high would be to encourage more the influx of foreign brands which can really shoulder these amounts of taxes because of their higher selling prices,” he said.

TDI Chief Marketing Officer Paul Lim said Tanduay distribution will be expanding to Singapore next month.

“Pina-priority namin kung saan muna maraming mga Pinoy. Kasi ’yung mga Pinoy ’yan ’yung mga tutulong sa’tin eh, we’re very proud of the Philippine product (We are prioritizing places where there are a lot of Filipinos. Because Filipinos, they’re the ones who will help us, we’re very proud of the Philippine product.),” Mr. Lim said.

TDI is also looking to further expand Tanduay distribution in the United States, Guam and five countries in Europe.

At the same time, TDI said global spirits market think tank Drinks International named Tanduay as the world’s number one rum for the second straight year.

“The two horse-race between Bacardi and Tanduay seems to be a thing of the past, with the latter boasting an additional 3 million cases in 2019,” Drinks International was quoted as saying by TDI in a statement.

Tanduay’s market share in the Philippines rose to 27% in 2018, from 25% in 2017. — Katrina T. Mina

Yields on gov’t debt drop

By Mark T. Amoguis
Senior Researcher

YIELDS ON government securities (GS) edged lower as they continued to track US Treasuries’ decline due to a possible Federal Reserve rate cut within the year.

GS yields, which move opposite to prices, dropped by a week-on-week average of 17.3 basis points, the PHP Bloomberg Valuation Service Reference Rates as of June 14 published on the Philippine Dealing System’s Web site showed.

Nicholas Antonio T. Mapa, senior economist at ING Bank NV-Manila Branch, said the local bond market continued to take its cue from the movement of the US Treasuries, which have been edging lower due to expectations that the US Federal Reserve will cut policy rates this year.

“Economic data out from the US bolstered the chances for a Fed cut, pushing Treasuries lower and dragging global bonds with them,” Mr. Mapa said in an e-mail interview on Friday.

“Reports that the BTr (Bureau of the Treasury) would be borrowing less in 3Q also pushed the rally further, although some profit-taking began to take place to close the week,” he added.

“Market expectations of a possible cut in fed funds rate this year have also supported the recent easing of most local interest rate benchmarks, especially short-term tenors,” Michael L. Ricafort, economist at Rizal Commercial Banking Corp. (RCBC), said in a separate e-mail.

Last week, Reuters reported that US inflation in May went up by 0.1% from 0.3% in April. Core inflation for that month increased by 0.1% for the fourth consecutive month.

In a separate Reuters report, initial claims for state unemployment benefits rose by 3,000 to a seasonally adjusted 222,000 for the week ended June 8 against a market consensus of a decreasing trend to 216,000.

These developments could bolster the case for the Fed to trim interest rates this year. Yields on two-year debt, which are a proxy for market expectations of rate moves, dropped the most across maturities, and were last down by 2.1 bps to 1.868%, Reuters said.

On the local front, National Treasurer Rosalia V. De Leon said last week that borrowings in the third quarter will likely be lower than the P315-billion program during the April to June period amid slow government spending seen earlier this year.

Ms. De Leon said the government has more than enough cash to finance the “sustained” higher spending for the next quarter or so.

At the close of the trading last Friday, bond yields on almost all benchmark tenors dropped except for the 10-year bond, which increased by 3.1 bps to 5.248%.

The three-month, six-month, and one-year debt were down by 40 bps, 41.0 bps, and 24.4 bps, respectively, to fetch 4.642%, 4.935%, and 5.213%.

The two-, three-, four-, five-, and seven-year Treasury bonds also declined by 17.2 bps, 13.9 bps, 10.9 bps, 8.3 bps, and 4.2 bps, respectively, to yield 5.099%, 5.119%, 5.140%, 5.163%, and 5.211%.

Yields on 20- and 25-year notes likewise dipped by 11.4 bps and 22.4 bps, respectively, to 5.378% and 5.509%.

For this week, economists said the market may take cues from the policy meetings of the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board (MB) and the Fed’s Federal Open Market Committee (FOMC).

“BTr’s canceled T-bond auction may entice some more action, although most dealers will likely look for clues to the BSP’s decision, with the market split on whether the BSP will cut or stay,” ING’s Mr. Mapa said.

“Philippine local interest rate benchmarks (PHP BVAL yields) could continue their recent downward trend in the coming week especially if there would be another cut in local policy rates on June 20, 2019 and if benchmark bond yields in the US and in other developed countries continue to ease as well and if global oil prices remained relatively low (at four-month lows recently) that could help further ease inflation,” RCBC’s Mr. Ricafort said.

Inflation stood at 3.2% last month from 3% in April but lower than the 4.6% last year, bucking the six consecutive month of slowing down. This brought the year-to-date average to 3.6%, still within the 2-4% target range of the BSP but above the 2.9% full-year forecast.

Currently, policy rates are in the 4-5% range after the MB slashed benchmark interest rates by 25 bps in May. The move partially dialed back a cumulative 175-bp hike to benchmark rates last year as the central bank tempered increasing inflation expectations after inflation surged to 6.7% in September and October last year.

Meanwhile, in a notice posted on its website, the BTr said it canceled the auction of seven-year bonds scheduled on June 26.

Brazil lifts suspension of beef exports to China

SAO PAULO — Brazil’s government said on Thursday it has lifted a suspension of beef exports to China after dealing with an atypical case of mad cow disease, sending shares of Marfrig Global Foods, Minerva SA and other Brazilian meatpackers soaring.

The suspension had been in effect since June 3 after a case was reported in a 17-year-old cow in the state of Mato Grosso. Cases can arise spontaneously in cattle herds, usually in animals 8 years old or older.

Tereza Cristina Dias, the agriculture minister, said on her Twitter account that Brazil would resume issuance of international health certificates to allow for beef exports to China.

Marfrig, whose shares jumped 5% after the announcement of the end of the suspension, said in a securities filing that the government’s issuance of these certificates had been normalized on Thursday.

Shares of rival Minerva also rose 3% in São Paulo.

China is the only country among Brazilian importers that enforces a health protocol requiring suspension of beef imports when an atypical case of mad cow disease is reported, Brazil’s agriculture ministry said in a statement.

The ministry reiterated the Brazilian government’s intention to negotiate a new health protocol with Chinese authorities to address the issue. — Reuters

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