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PAL Holdings appoints president

PAL HOLDINGS, Inc., operator of flag-carrier Philippine Airlines (PAL), has named billionaire Lucio C. Tan as its president.

In a disclosure to the stock exchange on Wednesday, PAL Holdings said Mr. Tan, who also sits as the company’s chairman, has also been appointed as president “on concurrent capacity.”

Mr. Tan replaces his son, Lucio K. Tan, Jr. who passed away on Nov. 11 last year.

PAL Holdings said its board of directors approved Mr. Tan’s appointment at a meeting held in Manila on Tuesday.

They also agreed to increase the number of the company’s directors to 11 from nine members.

The holding firm said further that at the meeting of stockholders held on the same day, the increase of the authorized capital stock to P30 billion from P13 billion had also been approved.

Philippine Airlines, Inc. President and Chief Operating Officer Gilbert Gabriel F. Santa Maria told reporters in a chance interview on Tuesday that the company “needs new capital.”

PAL said in a statement that the capital hike “is part of the flag carrier’s transformation towards sustainable profitability and a higher level of competitiveness.”

Mr. Tan’s son took over the holding firm on Oct. 28 after the resignation of Mr. Santa Maria. The latter remains as president and chief operating officer of PAL.

In late July, PAL Holdings named Mr. Santa Maria as its president. He was handpicked by Mr. Tan to replace Jaime J. Bautista who retired in June.

PAL Holdings reported in November that in the nine months ending September, its attributable net loss widened 116.2% to P8.5 billion from the previous year’s P3.92 billion, as expenses and financing charges increased.

PAL, along with other major local airlines, canceled flights to and from China, Hong Kong, Macau and Taiwan recently amid a coronavirus disease 2019 (COVID-19) outbreak that has killed more than a thousand people and sickened tens of thousands more in the mainland. — Arjay L. Balinbin

Samsung to benefit from China virus woes afflicting Apple, rivals

SEOUL — Samsung Electronics stands to be a major beneficiary of the China production problems announced by rival Apple, Inc. on Monday, reaping the rewards of a decade-long bet on low-cost smartphone manufacturing in Vietnam.

Half of Samsung’s smartphones are now made in Vietnam, where the coronavirus that has crippled the China operations of Apple and many other firms has so far had only a limited impact on its production.

Apple said on Monday it would not meet its revenue guidance for the March quarter due to the coronavirus impact on both production and sales in China, where most iPhones are made. Chinese smartphone maker Xiaomi Corp. last week also flagged a hit to its March quarter sales.

Huawei, another major Samsung rival, has not announced any production problems, but Samsung insiders, analysts and suppliers expect it will also be hit hard due to its heavy reliance on Chinese manufacturing and parts. Many Chinese and foreign firms have begun to re-open China factories that were idled for weeks, but shortages of workers and other problems have in many cases kept output to a minimum.

Samsung has also largely ceded the China market to its rivals in recent years, meaning it won’t suffer from the store closures and drop in demand that is hitting Apple and others.

“Samsung is better positioned to weather the virus fallout than its formidable rivals such as Huawei and Apple,” a person with knowledge of Samsung’s supply chain told Reuters.

“The virus exposed China risks. We feel fortunate that we were able to escape the risks,” he said.

Another person familiar with Samsung’s thinking told Reuters: “Samsung does not say it publicly. But it is relieved.”

Still, two sources familiar with Samsung’s Vietnam operations cautioned that should the virus outbreak be prolonged, Samsung would feel the impact, as the company sources many components from China.

Problems with cross-border shipments also cropped up in the early phases of the virus outbreak as Vietnam imposed stricter border controls, according to Hong Sun, vice chairman of Korea Chamber of Business in Vietnam. The issues have since been resolved, Sun said, but risks remain if Chinese parts suppliers cannot get back to work.

Samsung also relies on Chinese contract manufacturers for some low-end models.

In a statement to Reuters, the company said: “We are making our best effort to minimize any impact on our operations.”

TrendForce recently cut its first quarter production forecasts for Huawei by 15% and Apple by 10%. It cut projections for Samsung Electronics by a smaller 3%.

Before the virus, the global smartphone market had been expected to end two consecutive years of falls, driven by smartphones running on faster 5G wireless networks. But the virus outbreak will throw cold water on any rebound, with global shipments likely to record another decline.

Since starting phone production in Vietnam in 2009, Samsung has aggressively boosted output through cheaper labor and generous government incentives. A number of South Korean suppliers followed suit, powering its breakneck growth.

Samsung ended its own smartphone production in China last year as its market share plunged to nearly zero.

Apple makes most of its iPhones in China via Chinese company Foxconn. Manufacturing facilities there that produce Apple’s iPhone and other electronics have begun to reopen, but they are ramping up more slowly than expected, Apple said on Monday.

Last week, Samsung unveiled a trio of flagship Galaxy S20 smartphones as well as its new foldable phone. Sources said the virus could delay new product launches by rivals. — Reuters

Lower your cholesterol with the Quaker Smart Heart Challenge

WITH STUDIES revealing that heart disease is among the top causes of death in the Philippines, Quaker Oats has moved to sustain the conversation about it and is challenging Filipinos to address the concern by lowering their cholesterol levels through its Smart Heart Challenge.

Back for another run this year, the Quaker Smart Heart Challenge aims to help individuals lower their high cholesterol in just 30 days by making one simple change: incorporating two scoops or eight tablespoons of Quaker oatmeal daily, as part of a diet low in saturated fat and cholesterol.

The challenge, which was first started here in the mid-2000s, was created to help adults learn about and develop heart-healthy eating habits, especially now that more and more individuals — including a growing number of young Filipinos — are experiencing heart problems and high cholesterol levels.

“Heart health continues to be a pressing concern here in the Philippines. The number of people having high cholesterol is growing. And it is not only older people who are experiencing it as more and more young people are having it. And Quaker Oats wants to address that,” said Kay Paras, Quaker Philippines marketing manager, at the Challenge’s formal unveiling on Feb. 11 at House Manila in Bonifacio Global City.

She was joined in the unveiling by Dr. Rodney M. Jimenez of the Philippine Heart Association, clinical nutritionist Jake Brandon Andal, and Dr. Rodolfo F. Florentino, immediate past Chairman-President of the Nutrition Foundation of the Philippines, Inc, who also shared their take on heart health and the benefits that can be derived from oats.

“Oats is a common cereal noted for its heart benefits, owing particularly to its high soluble fiber content called beta-glucan,” highlighted Dr. Florentino, adding, “Scientific studies have shown that beta-glucan is capable of lowering the cholesterol level in the blood, particularly LDL-cholesterol.”

The Quaker Smart Heart Challenge started on Jan. 6 this year and runs until April 30.

Those joining must be 20 years old and above, be a resident of the Philippines, have borderline high to high total cholesterol levels (above or equal to 200 mg/dl), willing to maintain a standard cholesterol lowering diet throughout the 30-day challenge, and able and willing to give written informed consent and to comply with the requirements of the promo.

Registration mechanics can be found at https://quakeroats.ph/. By joining the Challenge one gets the chance to win a Smart Watch plus one-year supply of Quaker products for the top three participants with the highest percentage reduction, and Fitbit Bands plus a six-month supply of Quaker products for the next 10 participants with the highest percentage reduction.

To aid participants in their journeys in the Smart Heart Challenge, Quaker Oats partnered with health coach Nadine Tengco to come up with a variety of sweet and savory recipes to take cue from.

Recipes like Coco-Choco Oat Jar, Oats n’ Mango Breakfast Jar, Oats n’ Raisins Banana Mug Cake, and Whipped Egg-Whites n’ Oats are some of the items found at Quaker Philippines’ website which participants can use as a pattern for their dietary needs.

“Incorporating oats into your daily diet need not be boring nor complicated. It’s easier and more accessible now than ever to kick-start a heart-healthy lifestyle,” Ms. Tengco assured. — Michael Angelo S. Murillo

Pru Life UK launches health management app

PRU LIFE UK launched its artificial intelligence-powered digital app in the Philippines which offers health management to both policyholders and non-policy holders.

By March this year, the app called Pulse will also have a Filipino version in a bid to cater to a wider public who wants to monitor their health and lifestyle.

The app, which was initially introduced in Malaysia in 2019, will be free for downloading by Android users for the soft launch and soon for users of Apple iOS devices.

“We want to use technology so that everyone can be concerned about their health,” Allan M. Tumbaga, Senior Vice President and Chief Marketing Officer at Pru Life UK Philippines, said in a briefing on Wednesday.

He cited data from the Department of Health which showed that one-third of Filipinos may die prematurely due to non-communicable diseases such as cancer and some heart diseases, among others, which can be caused by their lifestyle choices such as diet and smoking habits.

Meanwhile, Pru Life UK Philippines’ Jomar O. Mislang said among the key features for the initial launch of the app is HealthCheck which will help users manage their lifestyle through a series of questions which will then give them their health score depending on the user’s answers.

The app also has a Symptom Checker feature to help users gauge their health whenever they feel sick.

“So symptom checker is a way for you to check what you’re feeling and give you recommendations on what to do or give you information on basically what you should do next when you’re feeling sickly or not in a good mood,” Mr. Mislang explained.

Both HealthCheck and Symptom Checker are powered by UK-based health technology firm Babylon.

“Please remember the services only for general information purposes and it isn’t a personalized or medical diagnosis,” he added.

Officials from the insurer said that they are also looking to partner with wearables as well as the Department of Health in order to fine tune the features of the app within this year.

In 2018, Pru Life was the fourth-biggest life insurer in the country based on premium income which hit P22.03 billion, according to data from the Insurance Commission.

The insurer also approved P644 million for the 2,737 approved claims in 2018. — LWTN

IMI swings to loss as market slows down

AYALA-LED Integrated Micro-Electronics, Inc. (IMI) swung to a net loss in 2019 amid slower revenues held back by a declining market environment.

The listed electronics and automotive manufacturer said in a regulatory filing yesterday its attributable net loss in 2019 stood at $7.78 million, a reversal of the previous year’s income of $47.19 million.

Revenues during the year dropped 7% to $1.25 billion, which the company said was due to a slowdown in global markets and higher overhead expenditures from new investments in capacity and technical building. Operating expenses grew 10% to $106.22 million in 2019.

Revenues from IMI’s wholly owned businesses fell 3% to $1 billion. By region, operating units in Asia were the most affected with an 11% decline due to the underperformance of China’s domestic market.

IMI Europe helped slow down the group-wide revenue drop with a 3% growth, backed by a new production facility in Serbia. Another positive performer is the Mexican market, which showed a 50% jump in revenues last year.

Other members of the IMI group of companies, namely Via Optronics and STI, Ltd., had a combined revenue of $248 million in 2019, a 21% reduction from a year ago. Revenues in Via were weighed down mainly by the contraction of the computing consumer segment and the delayed release of the new generation Intel chip. On the other hand, the decline in STI revenues came from the delayed awarding of programs due to Brexit uncertainty.

Moving forward, IMI Chief Executive Officer Arthur R. Tan said the company wants to continue focusing on improving its technological capacity in hopes that it will lift the company’s finances in the future.

“Despite the continuing decline of the market environment, we are resolute in setting the bar to key technological advancements and remain ahead of the curve,” he was quoted in a statement as saying. “…I’m confident that we shall continue to win significant businesses in emerging technology platforms.”

He added, “As the adoption of these new products begins to accelerate, we will relentlessly take the necessary steps to achieve sustainable returns as we pull through this current market situation.”

IMI operates globally with manufacturing plants in the Philippines, China, Bulgaria, Czech Republic, Germany, Japan, Mexico, Serbia, United Kingdom and the United States. However, its four facilities in China suspended work in late January to early February due to the coronavirus disease 2019 (COVID-19).

Shares in IMI at the stock exchange lost 66 centavos or 10.65% to P5.54 apiece on Wednesday. — Denise A. Valdez

Sony struggling with price of PlayStation 5 due to costly parts

SCARCE components have pushed the manufacturing costs for Sony Corp.’s next PlayStation to around $450 per unit, forcing a difficult price-setting decision in its battle with Microsoft Corp., according to people with knowledge of the matter.

The Japanese conglomerate is preparing to gradually replace the six-year-old PS4 console, releasing its PlayStation 5 the same holiday season its archrival debuts the upcoming Xbox Series X. Sony typically finalizes a console’s price in February of the release year, followed by mass production in the spring. With the PS5, the company is taking a wait-and-see approach, said the people, asking not to be named because the details are private.

The PS4, released in 2013 at a retail price of $399, was estimated by IHS Markit to cost $381 to manufacture. With the $450 unit cost and a similar gross margin, the PlayStation 5’s retail price would have to be at least $470. That would be a hard sell to consumers, considering Sony’s most expensive machine now is the $399.99 PS4 Pro and is often discounted, according to Macquarie Capital analyst Damian Thong.

“Consumers will benchmark their expectations based on the PS4 Pro and PS4,” Thong said. “If Sony prices above that, it would likely be to balance a need to offset higher materials cost, against risk to demand.”

Sony declined to comment.

The company’s biggest headache is ensuring a reliable supply of DRAM and NAND flash memory, with both in high demand as smartphone makers gear up for fifth-generation devices, according to people familiar with Sony’s operations. Samsung Electronics Co. just announced its Galaxy S20 product range, each variant of which will have 5G and a minimum of 12GB of RAM in the US.

Videogame companies often sell hardware at thin margins or even at a loss because they profit from lucrative game software and recurring online subscription services. Sony’s Chief Executive Officer Kenichiro Yoshida has said the business should be judged by the number of active users, not the number of hardware units sold. Some Sony games staff think it should sell the new console at a loss if necessary to match Microsoft’s price, while other Sony executives would prefer to make money as the company did with the PS4.

“We must keep PlayStation 5’s bill of materials under our control and we need to make the correct number of units in the initial production,” Sony’s Chief Financial Officer Hiroki Totoki said at an earnings briefing earlier this month.

Most of the components for the console have been locked down, the people said, including the cooling system, which is unusually expensive at a few dollars per unit. Typically, companies would spend less than a dollar, but Sony opted to lavish more on making sure heat dissipation from the powerful chips housed inside the console isn’t an issue.

The ongoing coronavirus outbreak has had no impact so far on preparations for PlayStation 5 production, they said. The company has yet to decided how many PlayStation 5 units it will make in the first year, they added.

Separately, Sony plans to release a new version of the PlayStation VR virtual-reality headset, tentatively scheduled after the PlayStation 5 goes on sale, the people said.

Sony has already canceled some previously planned features for a new mirrorless camera due this year owing to the constrained DRAM supply, several people with knowledge of the matter said.

Sony executives are voicing patience about the next console’s pricing as they anticipate the transition to be a gradual one, said people familiar with its day-to-day operations. Many of the games launched for the PlayStation 5 will also be available to play on the predecessor machine, so revenue from software and related network services is expected to keep the business performance intact. Microsoft and Sony are both expanding their respective online subscription services, revenue from which may allow them greater flexibility on hardware pricing.

People within the PlayStation business unit said a key factor in deciding the ultimate PlayStation 5 retail price will be where Microsoft sets its price for the next-generation Xbox Series X. Microsoft is widely expected to hold that information back until the E3 gaming expo in Los Angeles in June.

There is pressure from CFO Totoki for Sony to provide more transparency and information in the buildup to the PS5’s release, which has caused some consternation internally. Asked about when he expects Sony to provide guidance on the gaming business outlook for the new fiscal year, Totoki said the plan is no different from the recent past, meaning the guidance can be expected around the end of April. — Bloomberg

New GrabKitchen offers Makati residents tastes beyond their boundaries

MAKATI RESIDENTS can now stop fretting: the dishes of Omakase, Mister Kabab, 24 Chicken, Recovery Food, and Frank and Dean, all restaurants which are outside the city, are now available in the area, while CoCo Fresh Tea and Juice has expanded its delivery operations in the area. This isn’t because they’ve opened up new branches. They’re all there thanks to Grab’s GrabKitchen.

Grab, collecting data from its GrabFood operations, figured out that the aforementioned restaurants are those most-widely searched for in the area (among other factors), but due to the limitations of delivery radii, aren’t available in Makati.

Now, under one roof in Glorietta 2, the six merchants have been equipped with fully operational kitchens so as to fulfill orders within the area. GrabKitchen also has a dine-in area, seating around 20, where one can order via a digital kiosk. Furthermore, one can mix and match orders from the partner merchants, and make food bundles such as the Awesome Twosome Bun-deal, with seven pieces of 24 Chicken’s Boneless chicken, and CoCo’s Three Buddies Milk Tea, and Omakase’s California Maki, for a limited period. Consumers can get discounts on bundles with promo codes GKBUNDEAL60 and GKBUNDEAL100 until Feb. 29.

This is the first GrabKitchen in the Philippines, but Grab has had them up and running in Indonesia, Thailand, Vietnam, and Singapore. According to GrabFood Head EJ Dela Vega, they plan to build three more in six months, in different locations around Metro Manila. “The goal is to have as much coverage as possible,” Mr. Dela Vega told BusinessWorld at the media launch of Feb. 12 at the GrabKitchen in Glroietta 2.

The ease for customers is quite obvious, but we asked how it benefits merchants who might want to get on the program. “They don’t have to pay a fixed rent (a percentage is taken from their sales); they don’t have to build a space,” he said. “It opens a virtual branch for them, basically. They don’t have to invest in the high costs of putting up a new branch.” — Joseph L. Garcia

Singapore dollar vulnerable to 2017 low on surprise easing risk

SINGAPORE’S CURRENCY may tumble to the lowest level since 2017

SINGAPORE’S CURRENCY may tumble to the lowest level since 2017 if the central bank responds as strongly to the spread of the coronavirus as it did to the SARS epidemic two decades ago.

That’s the view of Tan Teck Leng, a macro strategist at UBS Group AG’s Global Wealth Management Chief Investment Office, who thinks the Monetary Authority of Singapore (MAS) could re-center its policy band for the currency lower. It took this rare action in 2003 to deal with the fallout from SARS and doing so again could see the local dollar dip through 1.40 versus the greenback, according to Mr. Tan.

Singapore’s fiscal chiefs pledged S$6.4 billion ($4.6 billion) in dedicated support for the economy on Tuesday, underscoring the level of concern among policy makers about the threat posed by the virus. The city state has more than 80 confirmed cases of the coronavirus and its trade-dependent economy is particularly vulnerable.

“There is a chance that if the virus were to get worse, that a re-centering down is possible,” Mr. Tan said in an interview in Singapore. “They can be very granular about how much they want to ease.”

Singapore’s dollar has already slid 3.3% against the greenback this year, making it the worst-performing currency in Asia after Thailand’s baht.

The MAS most recently eased policy in October by slightly reducing the slope amid the US-China trade war and slowing growth. The central bank has re-centered the band lower only three times since 2001, and it did so only after it had shifted to a neutral policy stance.

The currency dropped to a four-month low earlier this month after the MAS said there was room within its exchange-rate band to accommodate currency weakness to counter the economic fallout of the disease.

The central bank conducts it monetary policy through its currency and has three parameters to control the Singapore dollar: the pace of appreciation in the exchange rate, known as the slope; the width of the policy band; and the level at which that band is centered.

Over the past two decades, most changes have been made by altering the slope.

“The immediate consequence of a downward re-centering is that there’s suddenly additional room for the Sing NEER to weaken,” said Mr. Tan, referring to the nominal effective exchange rate. Assuming that the currency is trading close to the weaker end of the band, re-centering down could open the way for 1%-2% of additional depreciation, he said.

The Singapore dollar was trading at 1.3907 per greenback on Wednesday.

The central bank’s next policy review is in April.

UBS sees the most likely scenario for April is that MAS flattens the slope as the impact of the virus is brought under control.

Still, re-centering the band downward while keeping the slope positive is “in the realm of possibility,” said Mr. Tan. — Bloomberg

Nonprofit group maps waste management plan

A NONPROFIT group has pledged to improve waste management, particularly the problem of plastic and other garbage that end up in the ocean and waterways.

On Wednesday, Philippine Alliance for Recycling and Materials Sustainability (PARMS) led the signing of a multi-sectoral commitment towards this end by coming up with an action plan for the coming years.

The event came after the signing on Jan. 26 by snacks manufacturer Mondelez Philippines, Inc. and other companies of their pledge “Ambisyon 2030: Zero Waste to Nature.”

PARMS will conduct consultation and planning sessions to make a roadmap. The timeframe of the goal will be divided into short (2022), medium (2025), and long-term (2030) targets.

PARMS Founding President and Commissioner Crispian N. Lao said the public needs to better understand the issue of plastic waste.

“We would like to be a partner to the government, advocacy groups and consumers to better understand the issue of plastic waste,” he said in a statement.

The short-term goal is for PARMS, together with the signatory companies, to develop a preliminary draft of a roadmap by April.

“What we want to do is to develop that roadmap and the activities of PARMS will be guided by that roadmap, towards achieving that roadmap,” Mr. Lao said.

One of the challenges that the pledge will face is the lack of waste infrastructure, Mr. Lao said, as he called for the collective effort of both the government and the private sector for the pledge to be successful.

“It is a collaborative effort inclusive of the government to put up the waste infrastructure to complement the packaging changes that manufacturers will implement. It is an ambitious target for the Philippines. But it is achievable and we are committed to see it through,” he said.

Another goal of “Ambisyon 2030” is to shift the public’s consumption patterns and to increase the people’s awareness to minimize waste generation.

Mondelez Philippines CGA Country Manager Toff M. Rada said that one of the company’s goals is to make the packaging of its products recyclable by 2025.

“The recycling industry has to be ready to take up the recyclable packaging for the pledge to be sustainable,” he said.

Mr. Rada described the project as a work in progress as the process of changing Mondelez’s product packaging is still being studied and will take time.

“Our company is studying a reasonable roadmap and timeframe that would allow us to change our packaging by 2025,” he added.

Mr. Lao said that small and medium-sized enterprises are also included in the same goal.

“Bigger companies will come in first in achieving the goal but other companies will also follow within the 2030 target,” he said.

Partner companies for “Ambisyon 2030” include Coca-Cola Philippines, Monde Nissin Corp., Nestle Philippines, PepsiCo, Inc., Procter and Gamble Philippines, and Unilever Philippines, among others. — Revin Mikhael D. Ochave

US mulls cutting Huawei off from global chip suppliers, with TSMC in crosshairs

WASHINGTON — The Trump administration is considering changing US regulations to allow it to block shipments of chips to Huawei Technologies from companies such as Taiwan’s TSMC, the world’s largest contract chipmaker, two sources familiar with the matter said.

New restrictions on commerce with China’s Huawei are among several options to be considered at high-level US meetings this week and next. The chip proposal has been drafted but its approval is far from certain, one of the sources said.

The measure would be a blow to the world’s no. 2 smartphone maker as well as to TSMC, a major producer of chips for Huawei’s HiSilicon unit and mobile phone rivals Apple Inc. and Qualcomm, Inc.

“What they’re trying to do is make sure that no chips go to Huawei that they can possibly control,” the second source said.

Huawei is at the heart of a battle for global technological dominance between the United States and China. The United States is trying to convince allies to exclude its gear from next generation 5G networks on grounds its equipment could be used by China for spying. Huawei has repeatedly denied the claim.

To target global chip sales to Huawei, US authorities would alter the Foreign Direct Product Rule, which subjects some foreign-made goods based on US technology or software to US regulations.

Reuters reported possible changes to that rule in November.

Under the draft proposal, the US government would force foreign companies that use US chipmaking equipment to seek a US license before supplying Huawei — a major expansion of export control authority that could anger US allies worldwide.

The US Commerce Department declined to comment on the proposal.

But a Commerce spokesman said recent US charges against Huawei, including conspiring to steal trade secrets, “reaffirm the need for caution in considering license applications. The US continues to have major concerns about Huawei.”

Huawei did not respond to requests for comment.

A spokeswoman for TSMC said the company does not answer “hypothetical” questions and does not comment on individual customers.

The United States placed Huawei on a blacklist in May last year, citing national security concerns. That forced some US and foreign companies to seek special licenses from the Commerce Department to sell to it, but China hawks in the US government have been frustrated by the vast number of supply chains beyond their reach.

Others in the Trump administration fear antagonizing Beijing, which just signed a trade deal with Washington. They also worry the restrictions will drive innovation offshore and benefit foreign rivals.

Most chip manufacturers rely on equipment produced by US companies like KLA, Lam Research and Applied Materials, according to a report last year from China’s Everbright Securities.

“There is no production line in China that uses only equipment made in China, so it is very difficult to make any chipsets without US equipment,” Everbright wrote. — Reuters

The Dalmore unveils 51-year-old single malt whisky

THE DALMORE has unveiled a limited edition 51-year-old single malt, with only 51 bottles created. Each is in a crystal decanter and high gloss presentation case.

The striking decanter is adorned with the iconic 12-point “Royal” stag in sterling silver and crowned with a crystal stopper. Every decanter is held in a hand-crafted high-gloss coffret case crafted from black sycamore wood.

This unique whisky will be available to purchase in select domestic and travel retail partners from February.

The latest release is The Dalmore’s first of the new decade, and reflects the distillery’s pioneering spirit and the enduring legacy of its 180-year history.

Richard Paterson, Master Distiller at The Dalmore, said: “The Dalmore 51 Year Old is a noble single malt of rare profundity and it has been my pleasure to closely follow its maturation over five decades. I am always looking towards the future and I carefully consider how each distillation will evolve, moving our spirits to new wood to transform their conclusion. The Dalmore 51 Year Old is a fine example of this.”

The special single malt began its maturation journey in ex-bourbon casks and was then distributed between Port Colheita 1938 casks, exclusive Matusalem sherry casks and first-fill bourbon casks. The spirit was finally reunited in specially selected bourbon barrels for a final flourish.

Paterson, who has been the creative force behind the brand for over 50 years, joined in 1970. He has developed a reputation for the curation of exquisite casks, sourcing casks from the world’s finest bodegas and wineries to craft different expressions.

Since the end of 2019, The Dalmore has been celebrating its 180th anniversary, marked by a series of special releases and events throughout this year.

The Dalmore Aged 51 Years is available to purchase at a selection of retail and travel retail outlets across the globe, with a suggested RRP of £55,000.

For more information, visit www.thedalmore.com.

Nomura finally making money from Asia investment banking business

NOMURA HOLDINGS Inc.’s investment banking business in Asia is set to return to profit this fiscal year after more than a decade of losses since its Lehman Brothers Holdings, Inc. acquisition, according to its division chief.

Cost cuts and fees from financing will drive the profit rebound in the year ending March 31, said Kenji Teshima, head of investment banking for Asia excluding Japan. Revenue is set to rise by about one third, led by private financing and dealmaking in India and Australia, he said, while warning that some transactions in China may be affected by the coronavirus outbreak.

Japan’s biggest securities firm last year unveiled plans to cut $1 billion of costs at its struggling global wholesale operation, helping to revive profit that’s been under pressure from years of losses abroad. Teshima’s group is benefiting from the firm-wide savings even as he keeps net headcount largely unchanged.

The cost cuts “will indirectly have a positive impact in terms of cost to my business,” he said in an interview in Hong Kong. Coupled with the revenue gains, that means “all of a sudden, it’s a game-changer year.”

Nomura’s 2008 purchase of Lehman assets in Asia swelled costs as it took on bankers. For global firms in the region, it can be harder to make money from investment banking than in Europe and America because of lower fees and high costs of running operations in multiple countries.

Teshima has shifted Nomura’s focus in several nations since taking the role four years ago. In India, he increased the emphasis on financing and the capital markets business rather than mergers advice, because many companies there need access to funds for growth. In Australia, he built a sponsor business from scratch, helping private equity funds execute deals.

While Nomura doesn’t split out regional earnings figures for its investment banking unit, wholesale revenue — which also includes global markets — in Asia ex-Japan jumped 53% in the nine months ended Dec. 31. Pretax profit from the region was 23.1 billion yen ($210 million) in the period, compared with a 3.7 billion yen loss a year earlier.

MAKING MONEY
Shares of Nomura closed 0.3% higher on Wednesday in Tokyo. The stock has gained about 68% since early June on renewed optimism over the profit outlook.

Private financing, which involves giving loans against collateral, has been growing in India and Australia in the past few years, Teshima said. India has provided “a very good mix” of revenue as the bank bolsters its margin lending business there, enabling it to compete with foreign players, he said.

The bank set up a joint entity with the markets division two years ago to better structure financing deals when advising clients on mergers and stock and bond transactions. One growth area is to provide leverage to hedge funds and insurers to purchase high-yield bonds underwritten by the bank, allowing it to earn multiple fees from one transaction, he said.

Mergers advisory between Japan and Asia and cross-border activity between the region and the rest of the world “has also made a step up,” contributing to the growth, Teshima said. Nomura was ranked 12th in Asia ex-Japan M&A last year, up from 30th a year earlier, data compiled by Bloomberg show.

In Australia, there are opportunities stemming from Japanese companies’ appetite for acquisitions. “Australia is a country where there’s a hot eye from Japan in terms of foreign investment,” he said.

Australia and India contribute about 20% and 15% of ex-Japan Asia investment banking revenue respectively, while China is the biggest market, making up about 40%, Teshima said.

Deals involving public fund raising in China may be affected by the coronavirus outbreak and the trade war as market valuations shrink, Teshima said. Still, that will lead to more deals where companies need to raise funds privately, he said, adding that he expects inbound mergers and offshore financing for Chinese clients to increase. Investors will switch to investment-grade issuance due to higher perceived risks, he added.

The virus that originated in China has led to more than 1,800 deaths in the country and at least 72,000 confirmed cases globally. It has caused delays in dealmaking as travel restrictions put discussions on hold. A handful of Hong Kong-based managing directors at Nomura who were on business trips elsewhere in Asia have opted to stay in other offices temporarily for health and safety.

“Over this period, it is about being as flexible as possible,” Teshima said. “In fact, it works to our advantage to have some of the active bankers to be sitting outside of Hong Kong for a temporary period.” — Bloomberg

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