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High Rollers at the Goodwood Festival of Speed

Words and photos by Manny N. de los Reyes

GOODWOOD, UK — Count on Rolls-Royce to make everyone attending the annual Goodwood Festival of Speed to feel right at home. Goodwood, after all, is literally the Home of Rolls-Royce, the iconic luxury automaker having made this tranquil English estate in the Sussex countryside its headquarters since Jan. 1, 2003.

The bespoke English brand served a highly contemporary presence at the recently concluded Goodwood Festival of Speed, presenting a spectacularly faithful recreation of the Grand Courtyard at the Home of Rolls-Royce.

No less than 14,000 cobbles and 50 tons of sand were employed to authentically recreate the picturesque Nicholas Grimshaw-designed entrance to Rolls-Royce Motor Cars on the Festival of Speed’s Laundry Green where highly bespoke displays of the brand’s full product portfolio were presented to the public.

The Phantom, the marque’s flagship, was presented front and center, reflecting its standing as the rarest and most desired object in the luxury world.

During the development of the new Phantom, many clients informed Rolls-Royce that they often drive their Phantom rather than employ a chauffeur; they enjoy its commanding stature on the road and, by taking the wheel, they can further absorb themselves in the experience that they had curated through Bespoke design.

This shift in user case has led clients to more vibrantly express the marque, often displaying a refreshing irreverence towards the expected codes of automotive luxury. Conveying both the rebellion and tradition that exists at the heart of Rolls-Royce, a head-turning Salamanca Blue exterior is balanced by Scivaro Grey leather with Cobalto Blue accents.

Following its global launch in the peaks of the Grand Tetons, Wyoming, the Cullinan ultra-luxury SUV has embarked on a remarkable Bespoke journey with the brand’s patrons who continue to create truly personal expressions of their lifestyles. An exclusive Cullinan has been curated in recognition of this extraordinary adventure.

The commission boldly reconciles the distinct notions of luxury and utility that Cullinan embodies. The brand’s hallmark high-gloss paint finish is rendered in Dark Indigo, while Selby Grey with contrasting Tailored Purple interior appointments represent a more playful expression of the brand. In addition, natural Open Pore Blackwood veneer is jeweled with a bespoke timepiece and highly polished aluminum bespoke audio speaker grilles, referencing the technical capability of Rolls-Royce’s proprietary audio system.

Since the introduction of the marque’s family of Black Badge models, younger, more dynamic patrons of luxury have responded by progressing the marque’s bold alter ego through their own highly personal Bespoke commissions. For the 2019 Festival of Speed, Rolls-Royce presented three powerful visions informed by the taste patterns of this new breed of owners.

A Magma Red exterior finish was selected to signify the dramatic intent of the Ghost Black Badge commission. Beyond the marque’s hallmark nine-coat paint finish is a Mugello Red leather interior that is emboldened by a Starlight Headliner with 1,340 individual red fiber optic lights, confidently underscoring the interior’s theme.

A Wraith Black Badge, meanwhile, was presented in heavy metallic Dark Emerald coachwork with a deep gloss black hood. The exterior colorway is extended to the interior: black textured Natural Grain leather is discreetly highlighted with fine cotton Dark Emerald monogramming to the headrests.

The dynamic substance of Dawn Black Badge is sensationalized by Galileo Blue coachwork and a modernist Selby Grey interior, complemented by the marque’s carbon fiber Aero Cowling, trimmed in Selby Grey, creating the elegant silhouette of a two-seat roadster.

A visceral demonstration of the most assertive expression of the marque, a Wraith Black Badge ascended the rigorous Hillclimb course at Goodwood during the Festival’s Supercar Run. It was driven by a House Driver from Rolls-Royce’s Black Gloves Program, a bespoke driving curriculum for Black Badge patrons who wish to exploit the full dynamic potential of their motor car.

The Course Director’s car at the Festival of Speed is recognized as the vehicle that carries celebrities, dignitaries and media guests throughout the event. The marque’s flagship, Phantom, was selected for this honor and was a regular presence on the course.

Last but not least, taking every Festival-goer utterly by surprise, a completely stock Cullinan took to the track for an improbable flat-out run — the huge automobile hurtling through the high-speed curves and corners supremely confident and composed, despite all four tires squealing. It was an absolutely surreal sight — and one that marked Rolls-Royce not just as a bespoke brand of luxury, but one of genuine driving excitement.

Energy dep’t seeking comment on smart grid policy circular

THE Department of Energy (DoE) is asking interested parties to comment on a draft circular that provides a national policy framework for smart grids and a “roadmap” for distribution utilities.

The move comes as distribution utilities have come up with their own initiatives to introduce smart grids that use innovative technologies to modernize the electric grid infrastructure.

The DoE said it saw a need to transform the Philippine power sector into “a secure, stable, flexible, sustainable, digitally enabled and interoperable system that provides reliable, efficient, and quality energy towards grid modernization and consumer empowerment.”

Under the proposed circular, the department has adopted several criteria for transitioning the power system into a smart grid by 2040: safety/reliability; efficiency; flexibility/sustainability; resiliency; and consumer empowerment.

The DoE said it hopes the Philippines will reach a level of smart grid development capable of “self-healing” and responding to recent policy issuances on Retail Competition and Open Access (RCOA); Renewable Portfolio Standards (RPS); Green Energy Option Program (GEOP); and Net Metering.

The department defines a smart grid as modernized electrical grids that use innovative technology with two-way and/or multi-way communication technologies, real-time monitoring and control systems.

The proposed policy framework anticipates the emergence of smart homes or buildings that are capable of monitoring and control of electricity and energy usage within their premises.

The grid reform plans also come amid the introduction of smart appliances and devices that allow real-time, automated, interactive technologies.

The DoE also expects the greater use of smart meters, or electronic real-time energy-measuring devices that are capable of remote connect/disconnect switching with two-way communication between the meter and the power utility.

Smart meters record consumption of electric energy in intervals of an hour or less, and communicate the information back to the power utility for monitoring and billing.

The proposed circular applies primarily to distribution utilities, including grid-connected, micro-grids and off-grid systems.

The DoE said if needed, it would coordinate with other government agencies to establish new incentive mechanisms for smart grid development.

It is enjoining the Energy Regulatory Commission (ERC) to promulgate, within six months from the effectivity of the circular, guidelines and to ensure proper and timely implementation of the policies to be set forth.

The proposal instructs the National Electrification Administration to provide concessional loans to smart grid projects of electric cooperatives. — Victor V. Saulon

Third telco license boosts Chelsea’s prospects

AFTER Dito Telecommunity Corp. (formerly known as the Mislatel consortium) received its operating license last week, major shareholder Chelsea Logistics and Infrastructure Holdings Corp. was one of the most actively traded stocks last week.

A total of P687.2 million worth of 83.3 million shares exchanged hands on the trading floor from July 8-12, data from the Philippine Stock Exchange showed.

Chelsea shares closed at P7.87 apiece on Friday, down 0.76% from the previous day and 8.38% week on week. However, the stock is up 22.4% year to date.

“The value turnover of Chelsea… soared last week. Last Monday, the market reacted on news that the Mislatel consortium received its permit to operate as the country’s third telecommunication player,” A&A Securities, Inc. trader Jeng T. Calma said in a phone interview.

Dito Telecommunity was formerly known as the Mislatel consortium, which is composed of China Telecommunications Corp., Udenna Corp. and Chelsea. It received a certificate of public convenience and necessity (CPCN) after complying with the P25.7-billion performance bond for their commitments as the new major telco player, Chelsea confirmed in a disclosure last Tuesday.

Through this CPCN, the National Telecommunications Commission assigned the radio frequency bands of 700 megahertz (MHz), 850 MHz, 2100 MHz, 2010 MHz, 2.5 GHz, 3.3 GHz, 3.5 GHz, and 10.5 GHz to Dito Telecommunity. This will make the group an official competitor to industry incumbents PLDT, Inc. and Globe Telecom, Inc.

A&A Securities’ Ms. Calma noted that Chelsea shares’ price reached a 30-day high of P9.36 apiece on Tuesday, but immediately pulled back midweek.

“Investors were fast to take profits on the stock, bringing its price to [last week’s] lowest at P7.20 per share on Thursday,” Ms. Calma said.

“Every time Chelsea’s stock price reaches a high, it usually corrects immediately, as investors would quickly sell, bringing its price lower. Meanwhile, every time the stock’s price drops, it becomes an opportunity to buy as investors prepare for the official onboarding of subscribers of Mislatel in the fourth quarter,” she added.

AP Securities, Inc. research analyst Roberto Miguel B. Ong said most investors were just waiting for the Mislatel consortium to comply with the required performance bond.

For Unicapital Securities, Inc. technical analyst Cristopher Adrian T. San Pedro: “[The] [m]arket is always forward-looking, and the investors already anticipated the awarding of the CPCN last month. Therefore, the result was a sell-on-news scenario which happened the day after the awarding of the permit to operate to the Mislatel consortium,” he said in a separate e-mail.

“The volume was unusually high due to the fact that some investors and short-term traders who accumulated last month below P7 per share decided it’s time to take profits.”

Commercial launch of Dito Telecommunity is scheduled in the second quarter of 2020.

The consortium committed to render a minimum broadband speed of 27 Megabits per second (Mbps) in its first year of operations and 55 Mbps in the succeeding years. It also committed to having a 37.03% coverage of the national population within its first year and 84.01% cumulative coverage in five years.

If it fails, the government must recall the CPCN and frequencies awarded to Dito Telecommunity and will keep its performance bond of P25.7 billion.

AP Securities’ Mr. Ong noted that for the year, Chelsea’s fundamentals remain strong although it is mostly driven by its shipping and logistics businesses as its telco unit is expected to start generating income next year.

“As a whole, the company’s structure is diverse. Earnings wise, its logistics and infrastructure segments could generate more revenues but are capital-intensive, and would greatly impact its balance sheet,” he said.

The listed firm led by Davao-based businessman Dennis A. Uy reported a net income of P139 million in the first quarter, up 21% from the same period last year with a bulk of its revenues coming from its shipping business.

In another development, Unicapital’s Mr. San Pedro noted a “bounce play” on the stock’s price during the latter part of last week brought partially by Chelsea’s latest shipping business expansion.

Last Friday, Chelsea disclosed the launching of the M/V Trans-Asia 20, a bed/seat “ro-ro” (roll-on, roll-off) type passenger ferry held at Kegoya Dock Co., Ltd.’s Japan shipyard on July 5. The ferry is a 98-meter vessel that can carry a total of 740 passengers, 22 buses and 6 trucks. M/V Trans-Asia 20 is scheduled to be delivered in October this year.

Next week, analysts expect Chelsea’s stock to continue its price action.

“The stock will probably continue its movement depending on further news and development on Mislatel,” A&A Securities’ Ms. Calma said.

She pegged the stock’s support at P7.5 apiece and resistance at P9.35 apiece.

For Unicapital’s Mr. San Pedro, “I expect the stock to consolidate between P7.20 [per share] support and P8.04 [per share] resistance in the short term. A bullish scenario is for the stock to test P8.28 [per share] and P8.54 [per share] resistance levels if it stays above P7.70 [per share]. The stock can also test the next support levels at P6.95 [per share] and P6.70 [per share] if it falls below P7.20 [per share] to confirm a dead cat bounce scenario (or a short-term rebound in the price of a declining stock).”

In a separate phone interview, a technical analyst from AP Securities said Chelsea’s stock price will continue to consolidate before another run-up following last week’s sharp decline with the company’s telco license through Mislatel remaining a catalyst for investors.

The technical analyst placed the stock’s support and resistance at P6.85-P7.2 per share and P8.05-P8.4 per share, respectively. — Carmina Angelica V. Olano

Major grain traders face one-two punch from US floods, trade war with China

CHICAGO — Severe US weather likely dented earnings for large grain companies including Archer Daniels Midland Co and Bunge Ltd for a second straight quarter, adding to headwinds from a still-unresolved US-China trade war, analysts and economists said.

ADM and Bunge, as well as peers Cargill Inc [CARG.UL] and Louis Dreyfus Co [LOUDR.UL], known as the ABCD quartet of global grain trading giants, faced processing-plant downtime, rail and barge shipping delays and other supply uncertainty this spring as historic floods ravaged the central United States.

The weather woes are heaping more pain on the battered US agricultural sector already hard-hit by a years-long crop supply glut and the US-China trade war now entering its second year. The tariffs China imposed on soybean exports from the United States in retaliation for US duties on Chinese goods curbed shipments of the most valuable US export crop.

The excessive rains and flooding could also have a lasting impact on the grain merchants, whose latest round of quarterly earnings will start this week. ADM and Cargill are viewed as particularly vulnerable due to their outsized US footprints. Reduced US corn and soybean plantings will likely cut available crop supplies in the United States, potentially driving up raw material costs and squeezing margins.

“They thrive on volumes and margins and both of those are going to be depressed in the coming year with the bushels being smaller and the margins likely not being there,” said Kevin McNew, chief economist with Farmers Business Network. “Export business is just going to fall off the cliff, especially for corn.” The US corn crop was more affected by floods than soybeans, because soy can be planted later in the season.

WEAKER RESULTS
The first of the companies scheduled to report is privately held Cargill, which announces fiscal fourth-quarter earnings on Thursday.

The results will cover the March-to-May period, when flooding disrupted grain movement, including export shipments, and the year’s second “bomb cyclone” blizzard temporarily shuttered at least six Cargill grain handling facilities and a beef processing plant.

Cargill and ADM both own barge companies that haul grain and other products on the Mississippi River and its tributaries. Grain barge movement so far this year is down about 37% from a year ago, according to US Army Corps of Engineers data, due largely to prolonged river closures triggered by floods.

Cargill is expected to report weaker results compared with the very strong earnings of the year-ago quarter, due partly to expected lower profit in its origination and processing unit, said Bill Densmore, senior director of corporate ratings at Fitch Ratings.

Bunge and ADM will follow, with second-quarter results covering April, May and June scheduled for release on July 31 and Aug. 1, respectively. Privately held Louis Dreyfus is expected to issue interim first-half results in the autumn.

Shares of publicly traded ADM and Bunge are hovering just above three-year lows notched this spring as mounting concerns about US plantings and trade fueled investor nervousness.

UNEVEN IMPACTS
With its concentration of assets in the United States and its large US ethanol business, ADM was likely hit harder by adverse US weather than Bunge, analysts said.

ADM cited poor US weather for a nearly $60 million drop in operating profit in its first quarter and warned in April that lingering weather impacts would cut second-quarter earnings by $20 million to $30 million. Some analysts expect ADM to post as large a hit to second-quarter earnings as in the first quarter as adverse weather stretched through the spring season.

“ADM’s first-quarter estimate of $50-60 million seems like a good starting point” for the second-quarter impact, said Seth Goldstein, analyst with Morningstar.

ADM’s soy processing, ethanol and sweeteners and starches units may post lower margins, and smaller corn and soybean crops will hurt its grain origination business, said Heather Jones, founder and senior analyst with Heather Jones Research LLC.

The price of corn, the most common feedstock for US ethanol makers, has surged as US farmers struggled to plant the 2019 crop due to a historically soggy spring. Cash corn premiums in parts of the eastern Midwest, where planting delays were most acute, are at a six-year high. Soybean prices hit a one-year top last week.

“Bunge is less exposed, but higher bean costs would squeeze soy crush margins in the US,” Jones said. Bunge is the world’s largest soybean processor. — Reuters

Being chic isn’t enough; today’s ‘It’ handbags must solve problems, too

HANDBAGS with organizational compartments aren’t known for being chic. They’re more the realm of busy soccer moms than fashion influencers. But with the ongoing popularity of athleisure and new social-media savvy lines such as Dagne Dover and Caraa, convenience and functionality are a bigger part of the pitch to professional women on the go.

Sales of traditional handbag makers in the US were down 7% during the 12 months ending May 2019, says Beth Goldstein, analyst for fashion and handbags at research firm NPD. One bright spot in the industry — valued at $8.6 billion in the US — are bags with innovative organizational techniques.

“The meaning of luxury is starting to change,” Ms. Goldstein says. “Consumers are responding to these brands that are solving problems. They are seeing a lot of value in that.”

For instance, New York-based Lo & Sons specializes in a two-in-one tote called the Seville ($428), which has an interchangeable shell design to transform it into a travel bag.

The Jemma handbag line, launched in 2015, features a model called the Emma ($395) with pockets dedicated to every item you can think to put in a purse — a tablet sleeve, a phone pocket, a lipstick holder, a credit-card pocket — plus a nifty central zipper pocket that can be detached and worn as a smaller crossbody bag.

There’s also a back pocket that can be unzipped at the bottom, creating a sleeve that slides onto the handle of a carry-on suitcase, allowing you to secure it while rushing through a busy airport.

Joanna Lau, founder and chief executive officer of Jemma, created the purse after striking out in her search for a handbag she could carry to work as a trader on Wall Street. “Many from established brands don’t include these pockets,” she says. “People are constantly digging for things that go missing in their bags.”

Professional organizer Kacy Paide recommends totes from the Montreal-based brand Want Les Essentiels for its sleek lines and luxury look. The company’s Lesage Leather Work Tote ($895) has three distinct sections and multiple interior pockets with magnetic closures, which are easier to use than sliding zippers.

The Knomo London Derby Leather Tote ($349) also has a cleverly concealed top compartment for such items as your phone, wallet, and keys that you want accessible but hidden, while the large interior pocket can fit a water bottle and a pair of shoes.

For Laura Cattano, a professional organizer in New York who has worked with Lena Dunham and Misty Copeland, the key to avoiding handbag clutter is going through your purse at the end of each day. But she recognizes that many people don’t have the time or inclination to do so.

She turns to British label Anya Hindmarch, whose bags have small interior slots for credit cards and cash. “Her whole angle is about organization,” Ms. Cattano says of the designer. “I have some of her smaller bags. It has a little wallet inside the bag.”

The purses don’t sacrifice style for functionality. For instance, Hindmarch’s Postbox Bag ($1,550) has a handmade vintage-gold frame and a shoulder strap that you can personalize.

Melanie Charlton, a founder of closet design firm Clos-ette who has worked with Beyoncé and Jay Z, says some of her clients are using Prada’s new pouches to store items in their purses. The brand’s Nylon Pouch ($480) is made with Saffiano leather and offers two zippered internal compartments, along with two external pockets.

Multiple compartments are also ideal for bags that need to transition between the office and the gym. Carmen Chen Wu, founder of handbag line Caraa, recognized the need for a combination purse and gym bag that looks more professional than a Nike duffel.

She designed the Caraa Studio Tote ($225), which has adjustable and removable backpack straps to transform the bag and distribute the weight between shoulders. And it has a waterproof built-in shoe compartment that keeps smelly sneakers and clothes separate from other items.

“Our lining is antimicrobial, so it won’t mold and will never start smelling,” Wu says. “The interiors of our bags are all wipeable.”

For a further multitasking option, the Senreve Voya Tote ($895) has eight interior pockets and a roomy main compartment that’s big enough to fit a spare pair of flats or a change of clothes. A suede, removable laptop sleeve gives you two bags in one, while the Italian scratch-resistant leather can handle a haul from the office to the gym to happy hour.

Avoid the tote trend that’s “just a bucket,” Cattano says. “Sections are good,” she says. “If you just throw everything in the bag, then you don’t know where anything is.” — Bloomberg

Peso seen to strengthen on bets of policy easing

THE PESO will likely strengthen against the dollar this week on bets of monetary policy easing by the US central bank.

The local currency closed Friday’s session at P51.13 versus the greenback, six centavos stronger than the P51.19-per-dollar finish on Thursday, on the back of lingering expectations of a rate cut by the US Federal Reserve.

Week on week, the peso strengthened from the P51.195 finish on July 12.

“The peso could continue its sixth straight week of appreciation…amid weaker US dollar versus major global currencies due to possible Fed rate cut as early as the next FOMC (Federal Open Market Committee) meeting later this month,” Rizal Commercial Banking Corp. economist Michael L. Ricafort said in a text message yesterday.

On Wednesday, Fed chair Jerome Powell hinted of a cut in benchmark rates in a prepared speech to the House Financial Services Committee.

He said the central bank will “act as appropriate” to sustain expansion as “crosscurrents” such as trade tensions and concern on global growth are weighing on the economy.

Mr. Powell’s testimony strengthens the case of a rate cut from the Fed when FOMC meets again later this month. According to the minutes of FOMC’s June 18-19 meeting, several Fed officials said a near-term rate cut was warranted to quell the effects of possible economic headwinds.

“The dollar might continue to depreciate this week, as dovish expectations on US monetary policy might further be bolstered by potentially weak US economic reports on retail sales and industrial production,” a market analyst said in an e-mail on Sunday.

On Friday, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the Fed has two options: to either cut rates by 25 basis points (bp) or by 50 bps. However, he noted that the probability of half-a-percentage point cut is “low.”

“That (gives) out, to me (and) the entire world more policy space for cutting,” Mr. Diokno said.

The BSP chief last week said the local central bank will likely to cut policy rates in the second half before moving to reduce banks’ reserve requirement ratios anew.

“Possible easing of local monetary policy amid easing inflation and possible Fed rate cut has also supported recent gains in the local financial markets, including the peso,” Mr. Ricafort said.

For this week, the market analyst expects the peso to trade between P50.70 and P51.30 versus the dollar, while Mr. Ricafort gave a P51.90-P51.30 forecast range. — K.A.N. Vidal

MINI makes maximum impact at the Goodwood Festival of Speed

Words and photos by Manny N. de los Reyes

GOODWOOD, UK — Diminutive dimensions aside, MINI made a big splash as the iconic British brand continued its 60th anniversary celebrations at the ever-festive Goodwood Festival of Speed, which ran from Thursday to Sunday the other week.

More than half a century after its improbable win in the 1964 Monte Carlo Rally, no one was taking the Oxford-based mini-car specialist for granted — especially on a world stage as grand as this annual speed fest. Setting hearts racing on the performance end of the brand’s range, and inspired by the car makers motorsport heritage, the 2020 MINI John Cooper Works GP made its UK debut at the Festival, following its world premiere at the Nürburgring 24-hour race last month. The new model stood proudly in the First Glance Paddock for the full duration of the Festival, and followed up its imposing presence with an electrifying run up Goodwood’s infamous hill climb.

Also making its UK premiere was the new 306-hp MINI John Cooper Works Clubman, which gets a 2.0-liter turbo four (mated to an eight-speed automatic with paddle shifters) generating some 300 horses and around 450Nm of torque — way more power than the current JCW Clubman and enough to rocket the eminently practical Clubman to 100 km/h in five seconds and on to an electronically limited top speed of 250 km/h.

The full model lineup was showcased on the MINI stand, including the MINI 3-Door John Cooper Works and 5-Door Hatch, the MINI Convertible, the MINI Countryman, and the MINI Plug-In Hybrid.

Featuring a distinctive silhouette and those infamous split rear doors, the refreshed MINI Clubman was on display for the first time in the UK. The five individual models sat within their own mood worlds, demonstrating their own personalities and characteristics for visitors to explore.

MINI owners were treated to rest and relaxation in the MINI Owners Lounge with free tea, coffee and water as well as mobile phone charging stations. To gain access, MINI owners simply showed their MINI key fob to gain entry to the top floor of the MINI stand.

The memorable David Bowie Classic Mini was also on display for MINI enthusiasts to enjoy — as was the 1964 Monte Carlo Rally-winning MINI Cooper of rally legend and now-MINI UK Ambassador Paddy Hopkirk, who himself came out to meet the public and sign autographs.

Continuing MINI’s 60th anniversary celebrations, a delightful selection of the brand’s lifestyle collection of various apparel, bags, mugs, and other items were available for purchase on the stand. A UK-exclusive, limited-edition t-shirt was on offer, with only 2,000 pieces available.

The exhibit even had a salon that offered complimentary male grooming services. London-based barbers and expert groomers were on the MINI stand throughout the duration of the festival.

The Goodwood Festival of Speed always brings with it the icons and legends of automobiledom’s sporting world. And standing head and shoulders with these giants is a small car named MINI.

Developer to invest P1.8B for Cavite expansion

By Vincent Mariel P. Galang
Reporter

LAGUNA-BASED developer P.A. Properties and Development Corp. (P.A. Properties) and Japanese real estate firm Hankyu Hanshin Properties Corp. (HHPC) are investing P1.8 billion to further develop its residential project in Dasmariñas, Cavite.

“For phase 2 and phase 3, the investment is about P1.8 billion… P700 million plus of that is Hankyu and… about P1.1 billion is P.A. (Properties),” P.A. Properties President Jonathan G. Lu told reporters after the groundbreaking ceremony for Idesia Dasmariñas Phase 2 and Idesia Heights.

Idesia Dasmariñas is the flagship project of PA-Hankyu One, Inc., the second joint venture between the two companies. It is a 37-hectare masterplanned community that targets young professionals, starting families, and overseas Filipino workers (OFW).

Phase 2 is a 9.18-hectare development which will have 648 units ranging from 42 square meters (sq.m.) to 63 sq.m. Prices for house-and-lots range from P2.8 million to P7 million.

The property firm expects P2 billion in sales from Idesia Dasmariñas Phase 2, which is scheduled to be completed by June 2024.

On the other hand, Idesia Heights is a 5.64-hectare community which will have 300 units. Unit sizes are either 63.3 sq.m. or 82.98 sq.m., with prices ranging from P5 million to P8 million.

The company expects to generate P1.5 billion in sales from the project, which will be finished by June 2024.

For the commercial component, Mr. Lu said there may be a mini-mall, but no solid plans for now.

There are also plans to put up business process outsourcing (BPO) offices, as well as food and beverage outlets.

Mr. Lu said Phase 1 of Idesia Dasmariñas is currently 60% sold.

“(Phase 1) is expected to be fully sold within the year to first quarter of next year. Actually, ang commitment namin sa [our commitment to] Hankyu is two and a half years from the time we launched it. We launched it December 2017,” Mr. Lu said.

The company expects P2.3 billion from the sale of 918 units in Phase 1.

Meanwhile, Romarico T. Alvarez, chairman of P.A. Properties, said that the company is now very aggressive in terms of land banking, given that its partner is keen on developing more communities in the Philippines. Currently, the company has 137 hectares of land.

“We are still into land banking kasi agresibo ‘to [because HHPC is aggressive]. Kami, noong [Before, when it’s] P.A. (Properties) lang [only], ang [our] inventory namin umaabot ng [lasts for] three years, four years. With Hankyu Hanshin good for one, two years lang kami. Currently, the company still has land inventory good for two years, and is still purchasing land for 2022 to 2024,” Mr. Alvarez said.

In November 2018, the two companies signed their third joint venture for the Launch of Idesia Lipa. This will be a 17-hectare mixed-use township in Lipa City, Batangas, which will have 1,144 housing units and commercial spaces.

Debt service payments fall 82.7% in May

THE government’s debt service bill in May fell 82.7% from a year earlier to P27.41 billion, the Bureau of the Treasury (BTr) said.

Interest payments, which accounted for the bulk of the total, fell 6.8% year on year to P19.67 billion.

Domestic interest payments decreased 15.34% to P15.78 billion from P18.63 billion year on year.

Foreign interest payments, meanwhile, rose 57.21% from a year earlier to P3.89 billion.

Amortization declined by 94.3% to P7.74 billion.

The government made no amortization payments to domestic creditors during the month, while amortization paid to foreign creditors rose 5.2%.

In the five months to May debt service fell 21.7% to P301.43 billion.

Interest payments during the period totaled P150.98 billion, up 6.7% year on year.

Amortization in the first five months accounted for P150.45 billion, down 38.2% a year earlier. — Reicelene Joy N. Ignacio

US Midwest floods to weigh on demand for diesel during fall harvest season

PUTNAM COUNTY, ILLINOIS — A disappointing planting season due to massive flooding in the US Midwest this spring is expected to have spillover effects on diesel demand during harvest season, analysts and traders said.

Heavy storms that lingered over the Midwest left millions of acres unseeded and put crops that were planted late at a greater risk for damage from severe weather during the growing season, which is expected to reduce overall harvested acres in the fall.

Usually, Midwest diesel demand jumps during corn and soybean harvest season around September and October as farmers rely on equipment that runs on the fuel. Now, market participants expect demand will sag in those months.

“The delayed planting will push the demand period back by about a good month. For the volume of product used, that should be down from last year,” said Rich Nelson, chief strategist at Allendale, a commodities brokerage in McHenry, Illinois.The delayed planting season sapped demand and prices for diesel in the region, leaving behind a glut of supply. Midwest distillate stockpiles are at 32.6 million barrels, the most seasonally since 2017, US Energy Information Administration data shows.

In the cash markets, Chicago ultra-low sulfur diesel sank to 18 cents per gallon below the NYMEX futures benchmark in mid-June, lowest seasonally on record, according to Refinitiv Eikon data going back to 2011. While it has gained since then, to 9 cents below futures, it is still the weakest on record for this time of year.

Group Three diesel, priced out of Tulsa, Oklahoma, is at 7.50 cents per gallon below futures, the lowest for early July since 2015.

The effects of the flooding could ripple through the remainder of this year, according to diesel traders and grain sellers. The day after the July 4th holiday, Rob Colby, who sells corn and soybeans across north-central Illinois, assessed a field of corn in Putnam County, Illinois, and estimated the crops to be three to four weeks behind schedule. The delayed planting will push back harvest season, which will then push back autumn tillage, when fields are prepared for the next season of planting.

“This year there probably won’t be much fall tillage done, which will delay progress into next spring even. So the lasting effects of this year are going to be probably two years until we’re fully recovered,” Colby said. — Reuters

Final call for applications: SSS condonation program

The new Charter of the Social Security System (SSS) took effect on March 5 with the passage into law of Republic Act (RA) No. 11199 or the “Social Security Act of 2018.”

The law aims to strengthen the state pension fund through the introduction of a new monthly contribution rate of 12% (with gradual increases up to 15% by 2025), the setting of minimum and maximum monthly salary credits, and the expansion and mandatory coverage of the fund for certain individuals, i.e., self-employed persons and OFWs, among others.

More importantly, the law introduces a condonation program, which allows employers with delinquent SSS contributions to settle their delinquencies without the imposition of penalties.

Following the passage of the SSS Charter, the Social Security Commission (SSC) issued Circular No. 2019-004, which implements the Transitory Clause of RA No. 11199, granting a six-month period for qualified employers or covered persons to settle their delinquencies and apply for a condonation of penalties. In general, the penalties offered to be waived under the program are the 3% penalty (2% beginning April 2019) per month, possible initiation of litigation, and damages, among others.

Notably, the offer period for the condonation is set to end on Sept. 6 (after its commencement on March 5).

Given that the window closes in less than two months, it now becomes worthwhile for employers to check on possible delinquencies that would call for an application for condonation. To an employer, questions like “am I or my employees covered by the requirement to contribute?,” “are there any missed contributions for covered employees?” would need some answers before a decision can be made. Here are some points to consider.

Basically, all employers, acting on behalf of covered employees, are required to withhold and remit monthly employer-employee contributions to a Social Security authorized agent or bank — and any employer or covered person who has not remitted all contributions due and payable to the SSS may avail of the Program.

Under the law, the types of employees covered include contractual or permanent employees not more than 60 years old, regardless of citizenship or nationality, the nature and duration of employment, and the manner of payment of compensation.

Even foreign nationals or expatriates under a local employment contract are considered covered “employees” in the absence of an explicit exemption under bilateral agreements. While the Philippines has Bilateral Social Security Agreements with 13 countries possibly providing exemptions from the mandatory coverage, the exemption is, however, not automatic. To be exempt, there needs to be a submission of a Certificate of Continuing Liability from the employees’ home country Social Security Office and approval of the Philippine SSS.

Other than the said general coverage, the following employers or covered persons are specifically included in the list of those who may apply for condonation:

• Those not yet registered with the SSS, including household employers;

• Those with pending or approved proposals under the existing Installment Payment Scheme Program of the SSS;

• Those with pending or approved applications under the SSS Program for the Acceptance of Properties Offered Through Dacion En Pago;

• Those with pending cases involving the collection of contributions and/or penalties or non-reporting of employees before the SSC, the regular Courts or the Department of Justice or Office of the Prosecutor;

• Those against whom judgment had been rendered either by the SSC or the regular Courts but have not complied with the judgment;

• Those who settled all contributions before the effectivity of RA No. 11199 but with unpaid or partially paid penalties for late or non-remittance; and

• Those against whom a Warrant of Distraint/Levy/Garnishment (WDLG) or Encumbrance had been issued.

The program also extends the entitlement to a condonation to those who have already paid contributions, partially or in full, before the effectivity of RA No. 11199, but are still faced with accrued penalties.

Now that the condonation program is about to close on Sept. 6, the SSS is making a final call on all employers to revisit their compliance and settle all past due SSS contributions, if any, without the pain of penalties.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Elena D. Manuel is a Tax Senior Director of SGV & Co.

Roberto Coin’s pretty and ethical jewelry

THE PIECES by renowned jewelry designer Roberto Coin — who went into design after a successful stint as an entrepreneur in the hospitality industry — are undoubtedly pretty, but are they smart, and as a bonus, even kind? That could be argued; and you’re welcome to ask some of his clients, a very long list that includes Oprah, Hillary Clinton, and Michelle Obama.

Mr. Coin’s designs are backed by the ethical manner by which they are produced. A Roberto Coin product is signed with a discreet red ruby hidden somewhere within the piece, synthetically produced as to avoid conflict stones. The stones adhere to the Kimberley Process, which certifies that diamonds do not come from conflict areas. Asia Sales Director Philip Grima also said that Mr. Coin is a member of the World Diamond Council, which, in cooperation with the United Nations, founded the aforementioned Kimberley Process in 2003. “He’s been one of the co-instigators and helped to develop the UN regulations,” he said.

The metals used in Mr. Coin’s creations are also compliant to the Dodd Frank Act that requires that the origins of all gold imported into the United States be certified conflict-free. “It’s a moral obligation, I think, that we have towards our customers to be able to assure them that the manufacture of the products that they’re using purely for beautification are not on the backs of child labor, conflicts, or other things of the nature.

“It is a payback, if you like; a contribution to the consumer so that they can sleep well… they can do that with a good conscience, because they know that we have ethically sourced all our materials,” said Mr. Grima.

One can see the discreet synthetic ruby that serves as Roberto Coin’s promise of adherence to the Kimberley Process in this Princess Flower ring, made with garnet and diamonds set in 18k white gold (P125,000)

A collection launched two years ago, the Princess Flower collection, showing diamonds in various colors set in configurations made to resemble stylized flowers, was used to display the newly redesigned Roberto Coin space in Rustan’s last week. The new space takes a lighter tone, and did away with the video screens to showcase the brand’s pieces without distractions.

Roberto Coin launches 500 to 600 different pieces every year. Asked about the prolific nature of Mr. Coin, Mr. Grima said, “Mr. Coin does not want to be identified with any single collection, or any particular single design. This is just as the diversity of the human race.”

Apparently, no one profile of the Roberto Coin woman exists, which is also why the brand endeavors to keep producing new pieces so often. “Each one: they dress differently, they have wear it differently, they have different lifestyles. He wants to allow each and every person to be able to wear a different piece of jewelry, as opposed to being pressed into a standard mold that they all have to wear the same thing,” said Mr. Grima.

We’ve mentioned some of Mr. Coin’s clients, such as Michelle Obama and Hillary Clinton, but Mr. Coin has also served women from various fields, such as entertainment. There is no one Roberto Coin woman, but they do all share something in common: more often than not, they’re very successful (a bracelet can go up to P2.4 million, after all).

“I would like to say that the design philosophy of Mr. Coin has correctly interpreted the taste of precisely this demographic,” said Mr. Grima. “It’s not overdesigned, it’s not… like whipped cream.

“In other words, intelligent, smart women appreciate the type of design that we are doing.” — JLG

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