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With miniature mannequins, Dior unveils post-lockdown collection

PARIS — French couture house Christian Dior upended its traditional catwalk show last week, presenting its intricate designs on miniature mannequins in a twist brought on by the coronavirus pandemic.

Brands had to unveil their collections online and through film as part of Haute Couture week in Paris, a showcase of high-end craftsmanship and one-of-a-kind outfits, after the presentations usually attended by fashionistas from around the world were canceled in the wake of the outbreak.

Dior’s gowns were inspired by female surrealist artists such as photographer Lee Miller and featured intricate embroideries as well as head-to-toe feathers in one lilac look.

The looks were fitted onto 37 tiny dressmaker’s mannequins, which will later be dispatched to top clients around the world, and were presented to the public last Monday through a whimsical film shot by Gomorrah director Matteo Garrone.

“We made this project in a very particular moment of our lives,” said designer Maria Grazia Chiuri, who began working on the show remotely under lockdown in Rome, coordinating with seamstresses and production crew who were also at home.

The traveling miniatures echoed a format French couture houses last used during World War Two to try and keep collections going and reach customers.

Chiuri said the label had sought to send the message that “traditions were alive” in Paris.

“It’s a different experience. But I think it’s a beautiful experience,” Chiuri said of working on the film, which featured nymphs and mermaids mesmerized by the couture gowns. — Reuters

Franchisers group launches buy local campaign as businesses try to bounce back from lockdown

THE Association of Filipino Franchisers, Inc. (AFFI) launched a campaign backing local consumption to support small businesses affected by the coronavirus disease 2019 (COVID-19) pandemic.

AFFI in a virtual launch of its “BUYanihan” campaign on Friday presented stakeholders offering services to micro-, small-, and medium-sized enterprises (MSME), including mobile application and financial service companies.

Startup company LOCQ, for example, presented its Price LOCQ mobile application for monitoring fuel prices and buying fuel at the preferred price for future redemption.

“As you know, the prices [of oil have] been increasing a lot over the last few weeks and if you had the app then you would’ve been able to save a lot already. You can fix your opex (operation expense) on fuel and control your budget,” LOCQ Founder and Chief Executive Officer Mark L. Yu said.

The program also presented an online business loans platform, transportation services, and health services.

The BUYanihan campaign is AFFI’s multisectoral campaign supported by the Trade department, the intellectual property office, and in cooperation with the Philippine Marketing Association.

MSMEs make up more than 99% of Philippine businesses. Based on 2018 Philippine government statistics, they generated more than 5.7 million jobs or more than 60% of local employment.

The businesses, after suspending operations throughout the stricter lockdown, are seeking funding assistance.

Applications for loans from the Small Business Corp. (SB Corp.), the financing arm of the Trade department, has reached double its current available funding.

Applications have already reached more than P2 billion, but initial funding is only at P1 billion while the department awaits government economic stimulus packages.

Trade Secretary Ramon M. Lopez said that there is an ongoing nationwide buy-local campaign.

“This is really to renew the consumer confidence and kasama din dito ’yung kampanya natin na (this includes our campaign) Go Lokal at OTOP hub kung saan fine-feature natin ang mga product ng (where we feature the products of) micro SMEs. In promoting BUYanihan we are increasing and improving consumer confidence,” he said. — Jenina P. Ibañez

Kia’s Aligada proffers hope amid industry gloom

IMAGE FROM KIA PHILIPPINES

IF THERE’S anything I’ve learned over the last few months of interviewing auto executives and dealer principals, it’s that the renaissance of the industry is more of a group project. The business of selling cars doesn’t only hinge on making digital showrooms available, or equipping salespeople with gadgets and the resources to reach out to prospects in this new normal, or even the rollout of enticing promos.

While these are obviously good to have in the pocket, the chief enabler of growth will be the banks — particularly since about 70% of vehicle purchases involve some form of financial instrument or car loan.

Having said that, Kia Philippines President Manny Aligada said that we should see (and expect) “a very cautious approach” for banks, such as enacting measures to “ascertain liquidity of customers who are applying” for loans. The Bayanihan to Heal As One Act certainly helped to ease payment woes for those affected by the lockdown, but if we get down to the brass tacks, this buys a grace period and not much else.

The Philippines, the executive averred, is in recession, and a full recovery isn’t expected until the fourth quarter of next year. He added that household spending is weak, and that we might still see companies closing down.

Mr. Aligada is one of those people to talk to if you want straight answers and, to be honest, hope. And who can’t benefit from a dose of that right now? But don’t get me wrong, though. It’s not false hope he’s peddling but one based on empirical data (see the graph he presented to media).

That’s a pretty steep and optimistic upward trend, but he thinks it can be realized. “We think the economy is resilient, (much like) Filipinos,” he said, and added that total vehicle sales are expected to end at 275,000 units (or 35% below the original 420,000 projection). In concert with a market decline, Kia Philippines is expecting a shift to “entry segments and commercial vehicles due to the need for personal mobility and movement of essential goods.” Indeed, from an all-time low of 133 units in April sold for CAMPI and TMA members, a 3,500% jump was registered the next month — due in no small part to a (limited) reopening of showrooms.

But this was no surprise.

To be honest, this is consistent with what many in the industry are divining as well. Because of the continued limitations of public transportation and the uncertainty (i.e. risks) with taking it, personal mobility is seen to grow. And while the dire economic effects of pandemic cannot be discounted, it’s becoming apparent that there is still, as in other markets and territories, pent-up demand.

However, what is a yellow light for unmitigated growth is the aforementioned (expected) cautiousness of banks.

Having said that, aside from entry-level personal mobility, Mr. Aligada said that the “new star” of this COVID-19 period is logistics, so Kia Philippines is covering those bases (see Angel Rivero’s article) to make the affordable even more accessible.

Kia Philippines is also busy adjusting to the new normal in other ways, while soldiering on ahead as planned in areas such as the opening of additional dealerships (Kia Marikina, Kia Fairview, Kia Isabela, and Kia Bonifacio Global City) in Q3 — bringing the total to 34. Isn’t this counterintuitive, we asked. The executive said it’s still about widening the reach of the brand to reach underserved or unserved markets. Four more facilities are planned to go up by the end of the year or early 2021. It’s also about “mimicking” the anticipated rebound of business.

One of the uncertainties that the company had prepared for is a disruption in parts supply. Mr. Aligada boasts that they have bolstered their inventory from 2,000 to 8,000. All told, 14 containers of parts are now awaiting distribution to dealerships for both current and future models.

Speaking of future models, Kia is set to unveil a new model in the last quarter of 2020. The company isn’t confirming just yet but, based on the teaser graphic, the vehicle in question might be the Kia Stonic crossover. I took a different tack and asked, “So, how many variants of the Stonic will you be bringing in?” The Kia executives in the Zoom call laughed heartily and said we’ll know soon enough. It was worth a shot, right?

The firm also intends to unveil its virtual showroom by the last quarter, as it is cognizant of how “customers “will increasingly prefer to do their product research online.” Meanwhile, “traditional customer interactions” such as during test drives, showroom visits, and coordination with sales agents will be done via “digital touchpoints” to promote physical distancing.

“All these are designed to not only jump-start our brand but the economy as well,” concluded Mr. Aligada.

Vivant Energy unit taps Wärtsilä for 23-MW Bantayan power plant

CEBU-BASED Vivant Energy Corp. said its subsidiary had tapped Finnish firm Wärtsilä to provide the engineering and equipment for a 23-megawatt (MW) power plant that will supply power to Bantayan island.

“The new power plant is an essential element for a secure economic future for Bantayan island. We are, at the same time, actively seeking to deliver electricity to small islands throughout the region, and a capable, reliable partner, such as Wärtsilä, is needed for this,” said Emil Andre M. Garcia, chief operating officer of Vivant Energy, in a statement.

The company said the power plant under its unit Isla Norte Energy Corp. would supply electricity to the entire island in northern Cebu, which experiences frequent power interruptions because of the lack of a reliable power supply.

The power plant is expected to be completed in 2021.

Isla Norte is a joint venture of Vivant Energy and Gigawatt Power Corp. It was awarded a 15-year power supply agreement by the Bantayan Electric Cooperative, or Banelco.

Vivant Energy described Bantayan as having a population of about 80,000. It also said the area is a major tourist destination with a growing trade and commerce.

It quoted Frederic Carron, vice-president of Wärtsilä’s Middle East and Asia energy business, as saying: “We have enjoyed a long-term relationship with Gigawatt and Vivant, and are pleased to be again providing a power plant solution tailored to the specific requirements of the project.”

“The Wärtsilä solution features the latest technology with high efficiency engines, and it will certainly add reliability to the local supply system and another addition to the growing installed base in the off-grid areas in the Philippines,” he added.

Wartsila provided the engineering and equipment for Delta P, Inc., which operates a 47-MW diesel-fired power plant in Puerto Princesa, and the Calamian Islands Power Corp., which supplies power to the off-grid areas of Coron and Busuanga through the Busuanga Island Electric Cooperative.

Pest control funds mobilized to contain armyworm infestation

FARMERS received P150 million worth of assistance to help control infestation by the fall armyworm, the Department of Agriculture (DA) said.

DA Corn Program Director Lorenzo M. Caranguian said: “We have provided affected farmers with 63,017 packs of Pheromone lures, 86,983 liters of pesticide and biological control agents such as Trichogramma chilonis to control fall armyworm eggs and earwigs, and Metharhizium species against fall armyworm larva.”

The DA’s Bureau of Plant Industry (BPI) and regional field offices will also conduct seminars on integrated pest management practices, pest control techniques, and good agricultural practices.

“We are deploying crop experts and procuring needed crop protection chemicals and biocontrol agents to effectively manage, control and contain fall armyworm that has to date infested 8,000 hectares planted to corn nationwide,” Agriculture Secretary William D. Dar said.

As of June 30, the DA reported that the fall armyworm has damaged crops in Cagayan Valley, affecting 4,214 hectares, followed by SOCCSKSARGEN (South Cotabato, Cotabato City, Sultan Kudarat, Sarangani, and General Santos City), where 1,730 hectares were affected.

Areas in Northern Mindanao reporting damage totaled 882 hectares, and the Zamboanga Peninsula 665 hectares.

Mr. Dar said the fall armyworm infestation was monitored in 208 municipalities across 47 provinces, based on reports from the BPI, the DA Corn Program directorate, and DA regional field offices.

The appearance of the fall armyworm was first reported in June 2019 in Piat in Cagayan Province.

The fall armyworm larva feeds on corn, rice, and other crops, affecting yields. — Revin Mikhael D. Ochave

Yields on gov’t securities drop on auctions

YIELDS on government securities declined following auctions conducted last week, with investors and traders deploying their excess liquidity to get these papers.

Debt yields, which move opposite to prices, went down by six basis points (bps) on average week-on-week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of July 10 published on the Philippine Dealing System’s website.

With the exception of the 20- and 25-year debt papers, all tenors saw their yields go down at the secondary market last Friday.

At the short end, the 91-, 182-, and 364-day Treasury bills (T-bills) declined by 13.2 bps, 13.8 bps, and 6.9 bps to fetch 1.695%, 1.735%, and 1.879%, respectively.

At the belly of the curve, the rates of the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) went down 7.7 bps (2.019%), 6.2 bps (2.143%), 5.9 bps (2.252%), 6 bps (2.363%), and 6.6 bps (2.575%), respectively.

At the long end, the 10-year debt paper went down by 5.1 bps (2.763%), while yields on the 20- and 25-year T-bonds increased by 0.1 basis point (3.589%) and 5.1 bps (3.710%).

“Demand had been initially cautious at the Bureau of the Treasury’s (BTr) 10-year auction earlier in the week. BTr opted to award at a concession of 20 bps above where the market had been trading (2.875%). This result initially caused rates to shoot higher — before persistent demand caused buyers to take yields lower once more,” ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said in an e-mail.

The BTr raised P30 billion as planned from its sale of fresh 10-year T-bonds out of tenders worth P59.71 billion last Tuesday. The debt papers carry a coupon of 2.875%, 400 bps lower than the 6.875% coupon recorded for the last 10-year bond series issued in January last year, but 8.7 bps higher compared to the previous day’s 2.788% rate in the secondary market.

National Treasurer Rosalia V. de Leon said demand for these papers remained strong with the market “still awash with liquidity.”

Monday last week also saw the Treasury raising P24 billion via T-bills out of P116.9 billion in total tenders, which was more than five times the initial offer of P20 billion.

“Investors will now be looking towards the pricing of the 5-year Retail Treasury Bond (RTB) [this] week to set the market direction. Based on current levels, it could potentially price within a wide range of 2.375%-2.75% (in our view, likely to be within the mid-point of 2.50%-2.625%),” ATRAM Trust’s Mr. Liboro said.

“However, similar to the previous RTB in February, if the BTr is inclined to grant additional concessions on the rate in order to generate stronger overall demand, we foresee a higher possibility of pricing towards the high end at 2.75% as opposed to the low end of 2.375%,” he added.

A bond trader said: “[W]e expect the market to focus on the RTB issuance. So market players are expected to reposition ahead of the rate-setting on [Thursday],” the bond trader said on a mobile-phone message.

For Security Bank Corp.’s Chief Investment Officer for Trust and Asset Management Group Noel S. Reyes: “Rates will still have a bias to be lower [this] week, but inflation numbers released [last] week should cap significant down moves in yields,” he said in an e-mail.

Headline inflation accelerated to 2.5% in June, picking up from 2.1% in May, albeit still slower than 2.7% in June 2019. Year to date, inflation settled at 2.5%, still within the central bank’s 2-4% target and above the 2.3% forecast for the entire year.

In February, the BTr raised a record P310.8 billion from its sale of RTBs, consisting of P250 billion from “new money” and P60.8 billion from the exchange offer program.

The second RTB sale is set to be conducted on Thursday.

The BTr has set a P205-billion borrowing program for July and will offer P145 billion in T-bills via weekly auctions and P60 billion in T-bonds to be auctioned off every other week. — MAPS

Haute couture goes online during a pandemic

NOT EVEN a global pandemic can freeze a fashion capital. Due to measures placed on gatherings, Haute Couture Week in Paris presenting the Fall/Winter 2020/2021 collections became an exercise in creativity — not just for the clothes, but how the brands would reach people, and most opted to show online. With people enjoying the collections at home, instead of jostling in Paris for the seats closest to the runway — the whole world gets a front-row seat.

Chanel ’s Virgine Viard showed her 2021 collection via YouTube in a video uploaded last week. Models, appearing alone on seamless backgrounds, danced to “Acid” by Jockstrap in a video shot by Swedish fashion director and photographer Mikael Jansson. Ms. Viard, who replaced Chanel Creative Director Karl Lagerfeld last year, showed an earlier collection that was meditative and monastic, based on founder Coco Chanel’s childhood in a convent at Aubazine. For this season, she takes inspiration from Chanel’s replacement, her own predecessor: Karl Lagerfeld himself.

Well, not quite.

In a statement, Ms. Viard says, “I was thinking about eccentric princesses, the kind of women that Karl Lagerfeld liked to accompany at parties at Le Palace.” Le Palace was a theater in Paris that operated as a nightclub, then went back to being a theater.

Taking inspiration from princesses, then, the collection is undeniably patrician, with luxurious velvet gowns, rich embroidery, and magnificent beading and jewelry. The nod to eccentricity is provided in styling, where these outfits contrast with faux-hawked models.

Tweed becomes a central element in this collection (a fabric long been associated with Chanel), worn of course as the familiar Chanel suit, but also in ankle-length dresses. The fabric favored by country gentry is given the runway treatment with embellishments such as sequins and embroidery. The Chanel suit also reached a high in the 1980s, around the time Karl Lagerfeld took over, perhaps because women were taking executive positions previously unavailable to them, and they had to suit up. The suits, then, also have a bit of predatory garishness that won’t look out-of-place in a catfight: we’re talking about a crystal-embellished black tweed suit, or one in fuchsia with gold trim.

The evening dresses, meanwhile, possess a certain je ne sais quoi that seems blessed with the spirit of models from the 1950s — think Suzy Parker, Lisa Fonssagrives, or Dovima. There’s a magnificent midnight blue dress with jeweled buttons running down its bodice, with bell sleeves making a statement, on a model with a hairdo matching the color of the dress. Another dress is in the same hue, tied at the high neckline with a bow, with a sheer cape trailing behind. As we discuss the 1980s, the influence of the New Romantic look can be seen in voluminous skirts, statement sleeves, and lace.

View the collection here: https://youtu.be/byGgiKj1LRY

BALMAIN
In a video uploaded last week by the maison, its haute couture collection appears to be a barge party. Called Balmain-sur-Seine (Balmain on the Seine), the collection was shown on the river of Paris itself, with models gliding on a runway set up on its deck. People lined up on bridges and the banks of the rivers to take photographs; it certainly was a spectacle to see haute couture on the river, with the sky and the city as its background.

We’re in love with a black beaded ball gown paired with full-length opera gloves, and a beret, of all things. Dresses with full-length ball skirts, such as a lovely black number beaded with a foliage pattern in white, or a cream ruched number with a crumpled sash, were seen on the boat. Another striking dress employed primary colors, with a hint of a pattern outlined in black, looking as if lifted from a Picasso. There are other references to art, such as in a rich velvet dress with what seems to be a baroque pattern running down its skirt. French singer Yseult, dressed in a Balmain white cape, performed during the show.

View the collection here: https://youtu.be/PeAgucSGVro

The use of rich fabrics in both shows point to a certain optimism for abundance and parties (read: gatherings in general) to return. Balmain Creative Director Olivier Rousteing said in a statement at the beginning of the video: “My own history makes it clear. Change can happen. Progress is possible. Today, as Balmain celebrates 75 years of Parisian excellence, Balmain-sur-Seine also looks to the future to highlight the powerful beauty of optimism.” — Joseph L. Garcia

Jaguar bares electric clause with I-Pace

IF PEOPLE are asking for it anyway, might as well bring it in. All British Cars (ABC), exclusive distributor of Jaguar vehicles in the Philippines, has just announced the arrival of “one of the most highly decorated cars ever,” it’s all-electric SUV, the Jaguar I-Pace. Speaking from the new Jaguar Land Rover boutique showroom at the Bonifacio Global City in Taguig, ABC General Manager Chris Ward described the I-Pace as “Jaguar’s smartest five-seater sports car.” The I-Pace is said to deliver power instantly, surpassing the performance of automobiles with conventional engines.

In a release, ABC said that, “Unlike cars with engines and gearboxes that can only deliver around 70% to 75% of what the engine can produce at the wheels, the I-Pace delivers 97% of electric power at the wheels. Thanks to its instant and efficient powertrain, I-Pace produces 400ps of power and 696Nm of torque, (making it) capable of accelerating from zero to 100kph in just 4.8 seconds. All these figures (are) without emissions.”

Two electric motors deliver power to all four wheels. The I-Pace body is made of an alloy and steel to maximize strength and safety without compromising on weight. The company said that the SUV is also designed to maintain downforce as the vehicle increase speed. A 90-kW lithium ion high-voltage battery powers the I-Pace, which charges from empty to full in 12 hours, 48 minutes using the “bundled 7kW charger, ideal for home charging. It is covered with an eight-year, 160,000-kilometer, 70% health state warranty.” Installation costs are not included, and may vary per household. It should be noted that ABC’s relevant supplier “will be evaluating interested households if their homes are qualified for a charger before (being sold an I-Pace).”

The I-Pace is said to feature regenerative braking which allows it to harness energy during deceleration. “Users can leave the charger plugged and can set when the I-Pace will charge. The (system) can pre-condition the battery and cabin temperature prior to planned departure. The thermal management system ensures the battery is optimized for the journey. Moreover, the I-Pace can also update its software over the air. This allows users to always get the latest version of telematics and battery energy control software without visiting Jaguar service centers,” added ABC.

But the company seems content to take its time for the moment, and is using the time wisely as it waits for orders and the units to fill them. It has an “evaluation unit” I-Pace in operation, and the company is observing real-world performance and other metrics for a better idea of the vehicle’s acclimation here. So far, they’ve seen that it can go two weeks without needing to recharge, so that should at least count for something to dispel range anxiety.

Something surprising, too: The I-Pace actually has an impressive 500mm wading depth.

Orders are being accepted at ABC, with a price tag of P7.59 million. An additional charger may be purchased for P105,000 (installation charge not included). The first customer units are expected to arrive before the end of the year.

The new boutique showroom of Jaguar Land Rover is located at 5th Avenue cor. 24th Street, Bonifacio Global City, Taguig. Customers may set an appointment before visiting the showroom or book a virtual appointment through (02) 8784 5003 or +63 919-068-2798.

China floods blamed for fresh ASF outbreaks

BEIJING — Outbreaks of deadly African swine fever are surging in some parts of southern China following heavy rains, analysts and industry sources said, in what could be a big setback for Beijing’s goal of replenishing pork supplies.

China’s hog herd, by far the world’s largest, shrank last year by around 180 million pigs, or 40%, after the incurable disease decimated farms. Pig producers are building new farms and restocking amid the push to restore lost pork production and tame runaway meat prices.

But while African Swine Fever (ASF) outbreaks have declined, partly due to smaller herds and better hygiene, the disease remains an obstacle to herd recovery. ASF is typically fatal for pigs but does not affect people.

Heavy rains and flooding across China’s south since mid-June appear to have triggered fresh cases, hurting restocking efforts, said Zheng Lili, chief analyst with consultancy Shandong Yongyi.

A Shandong Yongyi survey of small pig farmers, corporate farmers, traders and slaughterhouses in 20 provinces revealed dozens of ASF cases had occurred since the heavy rains in Guangdong province, the Guangxi region and other areas.

“Even the medium to large farms were hit,” said Zheng.

Farmers typically bury infected pigs, and the rains may have spread the disease via groundwater, analysts said.

The Ministry of Agriculture and Rural Affairs reported a dozen outbreaks of the fever in March and April, however, indicating it was spreading before the rains.

The last case reported by the ministry occurred in Yunnan on June 5. Many outbreaks, though, go unreported.

China’s agriculture ministry and the Guangdong government did not respond to faxes seeking comment on the disease’s resurgence. The Sichuan and Jiangxi governments could not be reached for immediate comment.

An official with the veterinary division under the agriculture bureau in Guangxi told Reuters by phone that they had not received any reports of ASFoutbreaks lately in the whole region, including Laibin.

Pig inventories in Guangxi in the first half of the year rose 1.12% from the previous year, according to government statistics, the official added. — Reuters

OUTLIER: ALI declines as market braces for new round of lockdown

By Marissa Mae M. Ramos, Researcher

INVESTOR concerns over stricter lockdown dragged property stocks, making Ayala Land, Inc. (ALI) the third most actively traded stock last week.

A total of 49.08 million ALI shares worth P1.65 billion were traded last week, data from the Philippine Stock Exchange (PSE) showed.

Shares in the property developer closed P32 apiece on Friday, down by 9.1% from the P35.2 price per share on July 3. Since the start of the year, ALI has retreated 28.7%.

“Property stocks, with ALI leading the charge, were actively traded for the duration of the week as investors continued to speculate on quarantine uncertainties,” Regina Capital Development Corp. Equity Analyst Anna Corenne M. Agravio said in an e-mail.

“Fundamentally speaking, a shift back to stricter types of quarantine would be another hit to the property industry, which has only just started to recover. Investors are pricing this in and the possible effects that it will have to ALI in the near-term,” Ms. Agravio added.

Wendy B. Estacio, senior equity research analyst at Philippine National Bank’s (PNB) Research Division, attributed the stock activity to “sustained profit-taking following its outperformance of the PSE index (PSEi) during market’s rally from March 19 (first trading day after the two-day closure of the stock exchange) and June 9 (post-lockdown peak).”

“During the aforementioned rally, ALI was the fourth-best performing index stock and gained 66%, which outpaced the PSEi’s 42%…” Ms. Estacio said in an e-mail.

After the country’s confirmed cases of the coronavirus disease 2019 (COVID-19) reached hundreds in mid-March, President Rodrigo R. Duterte imposed a lockdown on areas where there is a high concentration of the disease.

Community quarantines in some areas in Luzon were already eased by May to dampen the strain on the economy, but the increasing number of COVID-19 cases in July have renewed investors’ fears about stricter measures. Since July 3, the daily number of additional cases range from 1,233 to as high as 2,539.

“This year will be particularly tough on ALI since there are large downside risks to its property development and leasing revenues. This was already evidenced by its first-quarter performance, and it is widely expected that in second quarter, it will post an even deeper decline in topline,” Ms. Agravio said.

“In addition, the limited construction capacity and delayed residential launches in the second half of the year will be two more hurdles to recognizing real estate sales. Since this makes up a lion’s share of the ALI’s operations, the continuing narrative would be a brief extension of the company’s negative income growth,” she added.

Ms. Estacio shared the same assessment: “[T]he company’s residential business, in general, may be affected by soft investor demand during the pandemic. Therefore, we forecast ALI’s full-year earnings to decline by 30% y/y (year on year) as its property development segment (about 70% of total revenues) is seen to drop by 38% y/y as the company deferred all new project launches for this year.”

“Meanwhile, we believe ALI’s balance sheet remains healthy and we see the company will continue to prioritize financial stability over growth during the crisis,” Ms. Estacio said.

The company’s net income attributable to parent declined 41% to P4.32 billion in the first quarter from P7.32 billion in the same period in 2019 after being dragged by the slowdown in reservations and project completion due to the Taal eruption in January and the lockdown in March.

It pushed ALI to cut its capital expenditures for 2020 by 37% to P69.8 billion. Meanwhile, the Securities and Exchange Commission approved on Friday its real estate investment trust (REIT) offering this year.

The country’s first REIT listing would raise around P15.1 billion worth of shares and will likely debut at the PSE on Aug. 7 under the trading symbol “AREIT.”

Regina Capital’s Ms. Agravio sees the approval of the REIT to be a “plus to ALI’s valuation” as investors price in gains from the offering into ALI’s fundamentals.

“The REIT would allow ALI access to a wider pool of capital in the long term, which the firm would then be able to reinvest or recycle into higher-return opportunities,” she said.

In the coming weeks, Ms. Agravio placed ALI’s support between P30 and P31 apiece while resistance at its 100-day moving average of P34 apiece.

Manuel Antonio G. Lisbona, president of PNB Securities, Inc., noted that since the peak of P38.30 last month, ALI’s stock price trended lower and broke below its 50-day moving average of P34.28 apiece.

“It is quite likely that the price will cover the gap formed between May 28 and May 29 or P30.85 to P31.35,” Mr. Lisbona said in an e-mail.

Style (07/13/20)

Kiehl’s offers dark spot solution

THESE ARE stressful times and stress can take a toll on the skin through visible signs of aging that include dullness, hyperpigmentation, melasma, and blemishes. Developed by Kiehl’s Since 1851, the Clearly Corrective Dark Spot Solution is a long-lasting and efficacious facial serum for men and women that treats dark spots, discoloration, and textural changes that occur due to the constant exposure to internal and external stressors. The serum is dermatologist-tested for gentleness and safety across all skin types, including sensitive and dry skin. Clinical tests based on a 12-week study of 17 women of varying skin types have shown that Kiehl’s Clearly Corrective Dark Spot Solution visibly reduces hyperpigmentation by 49%, dark spots by 39%, and post-acne marks by 24.8%. Additionally, Clearly Corrective Dark Spot Solution brightens the skin by 41% and enhances clarity by 37%. The serum is made from a number of naturally-sourced ingredients, including: Activated Vitamin C which penetrates the skin to reduce dark spots and diminish discoloration; White Birch Extract which restores hydration and nutrients in the skin, and, when combined with Activated C, can help even the skin tone; Peony Extract, a staple in traditional Chinese medicine which is a natural antioxidant that when paired with Activated C, enhances skin clarity The Clearly Corrective Dark Spot Solution is available all Kiehl’s Since 1851 stores nationwide, via Facebook through Kiehl’s Philippines, and online at http://www.kiehls.com.ph. Prices start at P3,200.

BOSS Fall/Winter 2020

THIS SEASON, BOSS celebrates a new generation. Ultra-modern tailoring, elevated outerwear, and fluid jersey pieces come together in a collection named “Generations,” which reworks and restyles BOSS icons to reveal a new contemporary aesthetic. The designs are created for BOSS men and women of every age, background and walk of life. The collection illustrates how the brand’s suiting heritage is more relevant than ever before, with sharp silhouettes in new fabrications and colors paving the way forward for tailoring in the 2020s. A striking organic pattern features in multiple forms across coats, tailoring, leather, dresses, and accessories. The embroidered pieces are expertly crafted in Germany, a reflection of the longstanding BOSS dedication to hand workmanship. Outerwear is relaxed and oversized, while impeccably cut jersey dresses, skirts, and tops skim over the body. Hand-woven leather, flowing fringes, and glossy, bonded fabrics with digital prints all add depth and detail. Vivid red and coral accent a fall-inspired palette of browns, creams, grays, and black, while a fresh shade of lilac offers the perfect counterpart to these warm hues. A new approach to color blocking brings three and four colors together in many looks. This season’s new bags and shoes are offered in luxurious materials and finishes, with square-toe stretch fabric boots for her, and utility-inspired cross-body bags for him as highlights. In the Philippines, BOSS has stores at Greenbelt 5, Shangri-La East Wing, Rustan’s Shangri-La, Rustan’s Makati, City of Dreams, 158 Designer’s Blvd. Newport Mall and Rustan’s Cebu. Visit www.hugoboss.com and www.ssilife.com.ph or follow @ssilifeph on Instagram for more information.

Lady Rustan’s and Lotus’ Spring/Summer 2020

LADY RUSTAN’S Spring Summer 2020 collection inspired by a sense of lightness. Barely there shades of mint green, cloudy blue, and petal pink are introduced, followed by a mix of varying degrees of darker, richer earth tones and denim blue. There is a balance of soft and structured in this line of everyday separates. Asymmetrical lines, bias cuts, and unexpected stitching details add a new modernity this season. Meanwhile, the Summer 2020 collection for Lotus features vibrant prints and soft watercolor hues in bold shapes and silhouettes. Lotus presents cropped tops, loose flowy pants, cover-ups and caftans in a mix of geometric prints and stripes, accented with playful trims. Lady Rustan and Lotus are exclusively available at Rustans Makati, Rustans Shangri-La, Rustan’s Alabang, Rustan’s Gateway, and Rustan’s Cebu. For more information, visit Rustans.com.

SM shops for you

SM MEN and SM Youth have a new collection of exuberantly vibrant clothing that reminds us that there’s always something to look forward to and celebrate. The collection, along with SM Woman, can be accessed through its Call to Deliver service, an alternative way to shop safely from home. In the service, customers phone in whatever it is they need from The SM Store, and the brands’ team of shoppers will handpick each item in store and arrange for the goods to be delivered to the buyer straight to the comfort of their homes. All shoppers have to do is contact 0917-800-1074, and they will be readily assisted. Alternatively, they can shop via ShopSM.com. Visit @SMMen and @SMYouth on Facebook and Instagram for more info and promos.

Landers promotes safe shopping

WITH THE easing of quarantine regulations, Landers Superstore is expecting an influx of members looking forward to enjoying its sales and promos, wide range of products, and different food and pastry shops. As part of its initiative to promote safe shopping, alcohol dispensers are ready for use at the entrance and shoppers are required to step on the disinfecting mats before proceeding to the store premises. The shopping carts are regularly disinfected, as well as the checkout counters after every transaction. Shoppers and employees are required to wear face masks all the time and to strictly observe social distancing. At the checkout counter, everyone is encouraged to stay behind the yellow lines when waiting for their turn. Store management is also limiting the number of people inside the shopping area. In case the store is at full capacity, shoppers will have to patiently wait for their turn while maintaining a distance of at least one meter from other customers. Food stores within Landers Superstore, including Landers Central, Dough and Co., and Doppio are open for takeout services only. Visit Landers Superstore branches in Alabang, ArcoVia City, EDSA Balintawak, Otis, or Ceb. For more information about Landers Superstore’s exclusive offerings, visit http://landers.ph/.

Peso may decline on weaker remittances

THE PESO may depreciate versus the greenback this week as the market awaits the release of remittance data expected to show a further decline due to the fallout from the coronavirus pandemic.

The local unit finished at P49.485 per dollar on Friday, depreciating by 7.5 centavos from its P49.41 close on Thursday, data from the Bankers Association of the Philippines showed.

It however strengthened by 6.5 centavos from its July 3 close of P49.55 per dollar.

“The peso was strong for the fourth strong week. Eventually, it’s driven by the sharp slump in import,” a trader said in a phone call.

Preliminary data from the Philippine Statistics Authority showed merchandise exports in May fell 35.6% year on year to $3.99 billion. Meanwhile, merchandise imports declined 40.6% to $5.85 billion.

With this, the country’s trade deficit narrowed to $1.87 billion from the $3.65 billion shortfall in May 2019. Year to date, the trade gap shrank to $9.84 billion from the $17.79 billion seen in the first five months of 2019.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso’s day-on-day depreciation on Friday was on the back of safe haven demand after declines in the US stock market.

“The peso was weaker after the upward correction in the dollar after profit-taking in the US/global stock markets amid the latest spike in COVID-19 (coronavirus disease 2019) cases,” Mr. Ricafort said in a text message.

For this week, the trader said market sentiment on the peso will depend on the upcoming release of latest remittances data.

“March [cash] remittances is down by 4.7% and expectation is a decline much wider than that,” the trader said.

Data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances in March decreased 4.7% to $2.397 billion because of the COVID-19 outbreak and escalating tensions among global oil producers as demand slumped.

The BSP expects cash remittances to decline by 5% this year due to the worsening fallout from the pandemic, down from the 3% growth estimate it gave last year.

Meanwhile, Mr. Ricafort said major catalysts this week will be the latest data on COVID-19 infections as well as “any further government moves to ease restrictions on businesses and the economy.”

Both Mr. Ricafort and the trader expect the peso to move within the P49.30 to P40.70 levels against the dollar this week. — L.W.T. Noble

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