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Local startups seek gov’t, private sector support

STARTUP COMPANIES are looking for government and private sector support as they deal with the effects of the Luzon enhanced community quarantine (ECQ).

Startup support platform QBO Innovation Hub Operations Head Natasha Dawn S. Bautista said Philippine startups are either racing to meet increased demand or pausing operations.

Live streaming and food delivery services companies are “overwhelmed with demand,” she said in an online interview on Friday.

“They’re definitely hiring…getting more people onboarded, but at the same time doing overtime.”

On the other hand, companies like AdMov that place advertising in ride-hailing app vehicles, can’t run their usual operations.

Luzon is currently under ECQ to limit the coronavirus disease 2019 (COVID-19) outbreak, limiting the movement of people, suspending public transport, and placing most businesses under work-from-home schemes.

While she said QBO has not yet seen any startups signalling possible closure or bankruptcy given the quarantine measures, Ms. Bautista said small companies are concerned.

“It is definitely a valid concern. There are some startup founders that are worried.”

Ms. Bautista said she is hoping bigger companies would collaborate with startups, such as partnering with car rental startups looking to help deliver necessities like personal protective equipment.

She explained that startups are able to execute quicker decision-making amid the outbreak as they are spared from the hierarchies of larger corporations.

Ms. Bautista is also asking that deferred utilities payments be staggered or flexible instead.

“Instead of deferring the entire payment to next month, why don’t we spread it out in the remaining of the year at zero percent instalment?”

Manila Electric Co. has granted its customers a 30-day extension for bills due between March 1 to April 14, while Maynilad Water Services Inc. and Manila Water Co. Inc. have announced a 30-day grace period for bills payments, as well as suspended meter readings.

Startups are looking for allowances and loans from government, Ms. Bautista said, noting that the Department of Trade and Industry (DTI) announced loans for micro and small businesses.

DTI last week said it is allotting P1 billion in an economic relief program for micro and small businesses affected by COVID-19.

Ms. Bautista added that she supports government’s call for companies to pay and offer incentives to employees regardless of their current work status under the quarantine. But startups are also looking for government support as they do so.

“Not all employers are rich, not all employers are able to provide for the next number of months, so what can the government do to also support the employers?” she said.

QBO is retaining its target of onboarding nearly 150 new startups in 2020 to reach 500 startups. As QBO switched to work-from-home arrangements, Ms. Bautista said they are noticing more startups as they become more active in promoting their products and services on social media.

QBO also moved its technology business innovation conference with the Department of Science and Technology online. — Jenina P. Ibañez

Britain’s top banks scrap dividend payments on coronavirus fears, pressure on bonuses

LONDON/HONG KONG — Britain’s top banks said on Tuesday they would suspend dividend payments after pressure from the regulator, saving their capital as a buffer against expected losses from the economic fallout from the coronavirus.

Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland, Standard Chartered and the British arm of Spain’s Santander all halted payouts.

The lenders had been due to pay out over 8 billion pounds ($9.93 billion) between them in 2019 dividends, with HSBC the biggest payer at $4.2 billion.

The move came in response to a request from the Prudential Regulatory Authority (PRA), which also asked banks and insurers not to pay senior staff bonuses this year.

Hong Kong shares of HSBC fell as much as 9.9% to their lowest since March 2009, while StanChart dropped 7.4% in the morning trade on Wednesday. The broader Hong Kong market index was down 0.4%.

The British lenders said they would not pay interim dividends for 2020 and scrapped planned 2019 payouts, but held off announcing changes to their executive pay policies.

The PRA said banks entered the epidemic, which has put Britain into lockdown, with strong capital positions, enough to withstand a severe UK and global recession.

“The bank has a strong capital base, but we think it is right and prudent, for the many businesses and people that we support, to take these steps now,” Barclays Chairman Nigel Higgins said.

Banks pay out dividends as a means of rewarding shareholders and disposing of excess profits, but they have the option to retain the earnings instead to preserve their capital levels.

FOLLOWING ECB’S LEAD
The statements from British lenders come after the European Central Bank (ECB) last week asked euro zone lenders to skip dividend payments and share buybacks until October at the earliest, and use their profits to support the economy.

Several of Europe’s largest lenders, including UniCredit, and Societe Generale, have already announced they will hold off paying 2019 dividends for now.

However, there are some hold outs. Swiss banking giants UBS and Credit Suisse have both said they plan to press ahead with 2019 dividends despite their home regulator urging caution over payouts.

The move to scrap 2019 shareholder distributions is expected to free up capital that banks can instead lend to businesses and consumers rocked by the coronavirus pandemic.

But some analysts believe cancelling dividends could actually harm the supply of credit to the real economy.

“We note that euro area bank market capitalization fell on 30 March by the same as the 30 billion euros ‘saved’ by its dividend ban on Friday 27 March,” analysts at Bank of America Merrill Lynch said in a note to clients, referring to the ECB’s move.

The European Union’s banking watchdog said earlier on Tuesday that banks should be “conservative” in how they award bonuses to preserve capital and keep lending during the coronavirus pandemic.

However it stopped short of calling on banks to stop bonuses altogether.

Italy’s UniCredit and Spain’s BBVA have both said this week that their top management will waive their 2020 bonuses.

Standard Chartered signaled in a memo on Monday that the bank would likely cut its 2020 executive payouts.

PRA Chief Executive Sam Woods also wrote to heads of insurers, saying they should pay “close attention” to the need to protect policyholders and maintain safety and soundness when considering bonuses or dividends.

HSBC signaled a gloomy first-quarter earnings season for British banks, warning in its statement that it would see bad loans rising and revenues falling as the economic impact of the pandemic hits.

The coronavirus has infected more than 850,000 people globally, and killed over 42,000, a Reuters tally shows. — Reuters

DFNN incorporates acquisition unit

GAMING COMPANY DFNN, Inc. is incorporating a new subsidiary that will function as a holding firm for future acquisitions.

In a disclosure to the stock exchange yesterday, the listed firm said its board of directors had approved forming a company with an authorized capital stock of P100 million and a subscription of P25 million. The stocks of the subsidiary will be fully subscribed by DFNN.

“The incorporation of this wholly-owned subsidiary is intended to be used as a holding vehicle for future asset acquisitions as may be deemed proper by the board,” it said.

Some of DFNN’s existing subsidiaries are Inter-active Entertainment Solutions Technologies, Inc.; Pacific Gaming Investments Pte. Ltd.; HatchAsia, Inc.; iWave, Inc.; and PGI Systems PTE Ltd.

While the company’s business is currently comprised largely of gaming operations, it also provides information technology solutions to corporate clients like financial institutions. — Denise A. Valdez

Alsons stays operating

THE POWER unit of Alsons Consolidated Resources, Inc. said it maintains its operations to supply energy in areas under enhanced community quarantine in Mindanao.

“Our operations are ongoing and we continue to dispatch power to our various customers in Mindanao,” Alsons Power Group Executive Vice-President Tirso G. Santillan, Jr. said in a statement on Wednesday.

The energy firm also said projects on its pipeline are well on track, including its first renewable energy project, a 14.5 megawatt (MW) hydroelectric power plant in Maasim, Sarangani Province, and the 105-MW San Ramon Power, Inc. coal-fired power plant in Zamboanga City.

In communities where it operates, the company has been providing food assistance as part of its initiative to help those affected by the quarantine. — Adam J. Ang

IBM developing AI tool to track virus infections

FILIPINOS will soon be able to track the spread of the coronavirus disease 2019 (COVID-19) in the country through an AI-enabled tool developed by the International Business Machines Corp. (IBM).

“The tool provides trend graphs, interactive mapping and details on confirmed cases and deaths by state and county in the US — Philippine data coming soon — as well as the latest news and video,” the US-based multinational technology company said in a statement emailed to reporters on Monday.

The IBM offers the tool through The Weather Channel mobile app and its website weather.com.

“The Weather Channel digital team knows how to cover severe events at a local level and is using that expertise to provide this data in a visual way to help people get trusted information related to specific locations they care most about,” it said.

IBM added that it has also designed an interactive dashboard based on IBM Cognos Analytics to help media organizations and data scientists conduct more in-depth analysis and filtering of regional data.

IBM’s The Weather Company General Manager Cameron Clayton was quoted as saying: “As the coronavirus causes uncertainty in our daily lives, we are all looking for data to help us make more informed decisions and check on our family and friends in different areas. With that in mind, we feel it’s critical to provide the most trusted information currently available to help people stay informed on the reach of COVID-19.”

“The Weather Channel is now providing COVID-19 data — so you can see why social distancing matters in your community and why it’s important to heed instructions from your local, state and national resources,” he added.

IBM said its tools provide localized data from the World Health Organization and national, state and local governments. Such data include confirmed cases, deaths, and recoveries, among others. — Arjay L. Balinbin

SC approves new rules on liquidation of banks

THE SUPREME COURT (SC) approved new rules on the liquidation of closed banks which will take effect on April 16.

Under A.M. No. 19-12-02-SC dated Feb. 18, the Supreme Court approved the proposed rules of the Philippine Deposit Insurance Corp. (PDIC), as reviewed by the Sub-committee on Commercial Courts, to assign as liquidation courts the regional trial courts designated as special commercial courts (SCC).

All pending petition for assistance in the liquidation (PAL) of closed banks that have not been given due course by regular courts will be transferred to SCCs.

“Other PALs which have been given due course shall continue to be heard by the courts where they are pending, but shall be governed by these Rules, unless the LC orders otherwise to prevent manifest injustice to the parties involved,” the resolution read.

Under the rules, the receiver, who will take over and liquidate the bank, will file a petition with the court within 180 days from the publication of the notice of the bank’s closure.

If the PAL is insufficient in form, the court shall order the receiver to comply with the requirements within 10 days from the receipt of the petition.

If the petition is sufficient, the court will issue an order setting for initial hearing in 60 days and direct claimants whose claims were denied by the receiver to file their claims with the court within 20 days from the date of publication of the order or 60 days from the receipt of notice of denial or disallowance of the claim, whichever is issued later.

The receiver will present proof of compliance with publication requirements and submit a formal offer of evidence before the court, submitting the petition for resolution. The court, within 10 days, shall issue an order giving due course to the petition.

The court, meanwhile, may dismiss a dispute claim on any applicable grounds under the Rules of Court or hold a pre-trial and trial before rendering a decision.

After the court gives due course to the petition, the receiver should file a liquidation report on the closed bank not later than the end of the third quarter of the succeeding year or as may be required by the court.

The partial or final asset distribution plan (ADP) of a closed bank for its creditors may be filed anytime after the submission of the liquidation report and the motion for approval for the final ADP will be filed within five years from the date of the closure but maybe extended to seven years based on compelling grounds.

A hearing will be set within 90 days from the receipt of the ADP and creditors will have to file their comments within 10 days.

The resolution approving the partial or final ADP must be published in a newspaper within five days and its finality will take effect after 30 days or after denial of motion for reconsideration. The receiver will implement the ADP.

“No temporary restraining order may be issued by any court, except the Court of Appeals when the matter is of extreme urgency, against the implementation of the Partial or Final ADP,” it said.

A final report on the implementation of the final ADP will be submitted by the receiver to the Monetary Board and Securities and Exchange Commission after expiration of winding-up period under the charter of the PDIC and submit a copy to the court.

The resolution also states the rule directing the receiver to file a motion for approval of plan within five years from closure should apply prospectively to banks which will close after the effectivity of the rules while for banks closed prior to this, receivers are given seven years from the effectivity of the rules to file a motion for approval of a final ADP. — V.M.M. Villegas

Stuff to do at home (04/02/20)

National Museum of the Philippines


The National Museum uploaded a coloring sheet of Juan Luna’s Spoliarium by Bryan Ferrer which may be physically or digitally colored. For more information, visit https://www.facebook.com/nationalmuseumofthephilippines/posts/3123148164376147.

Children’s books online

Enjoy digitized children’s book titles from the University of California (UCLA)’s children’s book collection at https://archive.org/details/yrlsc_childrens&tab=collection; and University of Florida’s digital collection of the Baldwin Library of Historical Children’s Literature at https://ufdc.ufl.edu/baldwin/all/thumbs.

Five-hour museum tour

Experience a five-hour tour in Russia’s Hermitage Museum, shot by filmmaker Axinya Gog on an iPhone 11 Pro. To watch, visit https://www.youtube.com/watch?time_continue=4&v=49YeFsx1rIw&feature=emb_title.

Guitar lessons with Fender

Fender is offering three months of free lessons for guitar, bass and ukelele. It includes high-resolution videos with teachers, and a progress tracker. Follow along to videos, and practise at your own pace with the adjustable scrolling tablature and a metronome. To sign up, visit https://try.fender.com/play/playthrough/?utm_source=bouncex&utm_medium=popup&utm_campaign=PlayThrough_BXPopup&utm_term=fender&src=emaill00DTplaypopup/

Toei anime on YouTube

Japanese animation studio Toei launches its YouTube channel that will stream shows for free. On April 6 it will release 70 shows with English subtitles; on April 13, it will release episode 3 and 4 of National Kid (updated on Mondays); and April 14, it will release episode 3 and 4 of Suki Suki Majo Sensei (updated on Tuesdays). To watch, visit https://www.youtube.com/user/ToeiAnimationUS.

Educational TV shows return to ABS-CBN

ABS-CBN brings back 1990s educational TV shows every Saturday. Sineskwela (8:30 a.m.) explains topics on science, Bayani (9 a.m.) is about historical figures and events, and Hiraya Manawari (9:30 a.m.) which focuses on values.

Cirque Du Soleil online

Enjoy free 60-minute specials from shows such as Kurios — Cabinet of Curiosities, O, and Luzia. To watch, visit https://www.cirquedusoleil.com/cirqueconnect.

Ayala Museum online

Continue learning at home with the Ayala Museum’s resources available online. Enjoy previous exhibitions and performances, coloring pages, and playlists. Visit https://www.ayalamuseum.org/online-resources/?fbclid=IwAR2psdA2kvBhhEC-iJs-seLvPXICAZ4zWO-bBIwvxjrhuTm18C_0zyOm3VE.

E-books for kids

Expand your kids’ library at home through the BuriBooks app. Titles include books from publisher Adarna House, reviewers, and Filipino textbooks. Access the app via iOS, Android, or a web browser. Sign up via https://buribooks.com/. Enjoy it free for 30 days.

National Gallery of Victoria virtual tours

The National Gallery of Victoria has developed several virtual tours. Audiences can view exhibitions such as Companionship In The Age Of Loneliness of New York-based artist Brian Donnelly, a.k.a. KAWS; and the world premiere of Crossing Lines, featuring the works of Keith Haring and Jean-Michel Basquiat. Visit https://www.ngv.vic.gov.au/channel/.

New free plays on Thursdays

The National Theatre in London brings its shows to YouTube. Beginning April 2, and every Thursday thereafter (7 p.m. GMT/2 p.m. EST),  National Theatre at Home will release a new play free to watch for one week. It includes cast and creative interviews and post-stream talks. The show starts with Richard Bean’s One Man, Two Guvnors on April 2, Jane Eyre on April 9, Treasure Island on April 16, and Twelfth Night on April 23. For information, visit https://www.nationaltheatre.org.uk/nt-at-home?queueittoken=e_safetyevent25mar20~q_b79a6e28-67d9-44de-88e6-29cedc812122~ts_1585490458~ce_true~rt_safetynet~h_8c7928d22caa971981f7edf53563d20e2fe8f68a3a3a1458b34b1cb17f11b50b.

Dulaang UP’s Ang Nawalang Kapatid on YouTube

Enjoy Dulaang UP’s Ang Nawalang Kapatid, a musical adapted from the Indian epic The Mahabharata, on YouTube. Directed by Dexter M. Santos, the show is written by Floy Quintos (book and lyrics), with music by Ceejay Javier. To watch, visit https://www.youtube.com/watch?v=vISTL9hHTcc&feature=emb_title.

Ballets at the Bolshoi Theatre

The Bolshoi Theatre in Russia showcases The Golden Series of classic opera and ballet performances via livestream on the theater’s YouTube channel. Livestreaming began on April 1 with The Tsar’s Bride. To watch, visit https://www.youtube.com/user/bolshoi

Free Murakami books online

Japanese best-selling author Haruki Murakami’s stories are made available online for free at http://www.openculture.com/2014/08/read-five-stories-by-haruki-murakami-free-online.html. Titles include Kino, A Walk to Kobe, and Samsa in Love.

PETA’s free classes online

Philippine Educational Theater Association (PETA) continues this week with a fresh lineup of free classes. From March 30 to April 3 (3 to 4 p.m.), actor and designer John Moran returns with the Part II of his DIY Crafting Class, acting coach and actor Norbs Portales will hold an Improv session, and director and actor Ian Segarra will conduct his Storytelling Techniques class. For more information, visit https://www.facebook.com/PETATHEATER/posts/10157360402972799.

Free books on modern art

Enjoy PDF and ePubs on modern art from the Guggenheim Museum’s archive. The collection includes books on Francis Bacon, Max Ernst, and Mark Rothko. Visit https://archive.org/details/guggenheimmuseum.

Free vet consultations online

Dr. Cyron Sarmiento opened his Facebook (https://www.facebook.com/mcejsarmiento) and Twitter (@Cyrooon) accounts for free online consultations.  For more inquiries, visit https://www.facebook.com/groups/648196199302932/. Consultations will run for the entire duration of the enhanced community quarantine.

Free Japanese courses

The Japan Foundation Manila launched an e-learning program of free Japanese courses. It includes six-month beginner and intermediate lessons on calligraphy, vocabulary, grammar, and conversation. Sign-up for your chosen course at https://minato-jf.jp/?fbclid=IwAR2SrhYV-9nH4Hbc9TbTspxg0t39DH6xtLQ-jz1n1uOkeGMK3bCdL022O8I.

Arts and Culture

Learn something new every day with Google Arts and Culture from virtual tours of sites, and museums to food, fashion, and design. Visit https://artsandculture.google.com/.

Frida Kahlo’s artworks online

View Frida Kahlo’s work online through the Google Arts & Culture platform. The website has 800 paintings, photographs, and objects by the Mexican artist from 33 international museums. To view the exhibition, visit https://artsandculture.google.com/project/frida-kahlo.

Scribd materials for free for 30 days

Enjoy free books, audiobooks, magazines, and documents for 30 days at Scribd. To view titles, visit https://www.scribd.com/readfree?fbclid=IwAR363ywNP9yoBbKJVQFYCtilfGfljPDGeOatqKJgWMV5Pj9-p7j-gkaGOb8.

Classic Pinoy films online

Director Mike de Leon uploaded classic Filipino films from the 1930s to 1960s on his vimeo account, Citizen Jake. Titles include Manuel Silos’ Pista sa Nayon (1948), Gregorio Fernandez’s Kung Ako’y Mahal Mo (1960), and Lamberto V. Avellana’s Aklat ng Buhay (1952). Watch films at https://vimeo.com/user83013343.

Free Neil Gaiman stories online

Best-selling author Neil Gaiman offers free essays, audiobooks, book excerpts, and videos at his official website under “Cool Stuff and Things.” Visit https://www.neilgaiman.com/Cool_Stuff.

Arts BGC at Home

Every Wednesday, Arts at BGC offers creative prompts at the Arts at BCG (https://www.facebook.com/artsatbgc/ and @artsatbgc) and BGC Art Center ( https://www.facebook.com/BGCArtsCenter/ and @bgcartscenter) Facebook and Instagram pages. Join the Arts at BGC Community to get in touch with other participants. https://www.facebook.com/groups/artsatbgc.

Ballet and opera free online

The Royal Opera House is showing its performances online through its Facebook (https://www.facebook.com/royaloperahouse/) and YouTube (https://www.youtube.com/user/RoyalOperaHouse) pages.  Performances include Handel’s Acis and Galatea opera on April 3; Mozart’s Così fan tutte on April 10; and the ballet The Metamorphosis on April 17.

Meg Cabot’s The Princess Diaries – Quarantine Edition online

Best-selling author of The Princess Diaries Meg Cabot offers The Princess Diaries – Quarantine Edition for free on her official website. Entries are updated daily. Visit https://www.megcabot.com/2020/03/corona-princess-diaries-day-1/?utm_content=122945851&utm_medium=social&utm_source=facebook&hss_channel=fbp-67512624694.

Bayanihan Musikahan

Bayanihan Musikahan gathers Pinoy musical artists online through marathon singing. The movement is aimed at raising funds to help urban poor communities in Metro Manila amidst COVID-19. For more information and live shows, visit https://www.facebook.com/pg/bayanihanmusikahan/about/?ref=page_internal. To donate, visit https://donate.paymaya.com/products/philippine-business-for-social-progress.

NHCP Documentaries on YouTube

The National Historical Commission of the Philippines (NHCP) makes Philippine history education accessible through documentaries on YouTube. For more information, visit https://www.facebook.com/historymuseumsPH/posts/997233837339314. Titles include: Jose Rizal: Sa Landas ng Paglaya, Apolinario Mabini: Talino at Paninindigan, Kababaihan ng Rebolusyon, and,  Gregoria de Jesus: Lakambini ng Katipunan.

Drawing lessons for kids with Mo Willems

Best-selling author and illustrator Mo Willems is hosting drawing lessons for kids called Lunch Doodles every weekday on YouTube. Each session will be between 20 to 28 minutes long. Mr. Willems is also welcome to questions (send to: LUNCHDOODLES@kennedy-center.org) which he will try to answer during sessions. For sessions of Lunch Doodles, visit https://www.youtube.com/playlist?list=PL14hRqd0PELGbKihHuTqx_pbvCLqGbOkF.

Paulo Coelho’s books online

Best-selling author Paulo Coelho has made his books available for free. Titles include: The Way of the Bow, The Manuscript Found in Accra, and Brida. Visit his blog at https://paulocoelhoblog.com/books-online/.

Shakespeare plays online

Shakespeare’s plays recorded at the Globe Theater are now available for online streaming. Titles include Hamlet and The Two Noble Kinsmen. To watch, visit https://globeplayer.tv/

Learn at home with Scholastic

Scholastic is offering free online courses for levels pre-kindergarten to Grade 6. Duration of the courses are approximately three hours per day. They include writing, research projects, and virtual field trips. The website is accessible on any device. Visit https://classroommagazines.scholastic.com/support/learnathome.html

Free opera streaming online

OperaWire will host Nightly Met Opera Streams of the Metropolitan Opera for free. The performances begin at 7:30 p.m. EST and will be available to stream for 20 hours. Visit https://operawire.com/metropolitan-opera-to-offer-up-nightly-met-opera-streams/. The Paris Opera is also streaming operas for free. Visit https://www.operadeparis.fr/.

Free films on YouTube

Catch Filipino films for free on the following channels: Regal Entertainment (https://www.youtube.com/user/regalcinema/featured); Cinema One Originals (https://www.youtube.com/channel/UCzggCZVkynvnjNV29L9EccA); and TBA Studios (https://www.youtube.com/channel/UChh0rmwGvToBd3owvN2vRMg).

Free online courses

Enjoy 1,500 free online courses from leading universities such as Stanford, Yale, Harvard, and more. Download the audio and video courses (from iTunes, YouTube, or university websites). Topics include archeology, art, finance, writing, law, health, religion, mathematics, and personality development. Visit http://www.openculture.com/freeonlinecourses.

Online yoga classes

YogaPlus offers daily yoga classes via Facebook live. For schedules, visit https://www.facebook.com/yogaplusph/.

Free Broadway performances online

Enjoy your favorite Broadway performances online for a limited time at https://www.broadwayhd.com/.

Virtual tours

Explore museums around the world through virtual tours: the Solomon R. Guggenheim (https://artsandculture.google.com/partner/solomon-r-guggenheim-museum?hl=en); the Smithsonian National Museum of Natural History (https://naturalhistory.si.edu/visit/virtual-tour/current-exhibits); the Louvre Museum (https://www.youvisit.com/tour/louvremuseum). View animals such as otters, penguins, turtles, and corals on live camera at https://www.montereybayaquarium.org/animals/live-cams.

How PSEi member stocks performed — April 1, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, April 1, 2020.

Peso weakens versus the dollar as manufacturing PMI ends below 50

THE PESO weakened against the greenback on Wednesday amid profit taking and after a contraction in the manufacturing sector due to the Luzon lockdown.

The local unit finished trading at P50.88 per dollar yesterday, shedding 20 centavos from its P50.68 close on Tuesday, according to data from the Bankers Association of the Philippines.

The peso opened the session at P50.70 per dollar. Its weakest showing for the day was at P50.93, while its strongest intraday level was seen at P50.67 against the greenback.

Dollars traded went down to $346 million from $363.1 million on Tuesday.

A trader said despite the weaker peso at the close of the session, trading was mostly sideways.

“In the past days, the peso strengthened, so today was for profit taking and the start of reversal although it’s not full reversal as it did not reach the P51 figure,” the trader said in a phone call on Wednesday.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso’s decline came after news of a contraction in local manufacturing activity.

“The peso exchange rate closed weaker after the latest decline in the Philippine manufacturing gauge,” Mr. Ricafort said in a text message.

The IHS Markit Philippines Manufacturing Purchasing Managers’ Index released Wednesday showed a reading of 39.7 for March which means a contraction, as it fell below the 50 mark which signifies growth.

This was also lower than the 52.3 seen in February and the 51.5 logged in the same month in 2019.

“The lockdown of Luzon island to halt the spread of coronavirus disease 2019 (COVID-19) had a dramatic impact on the Philippines manufacturing sector in March,” IHS Markit said in a report.

The enhanced community quarantine is set to end on April 12 if officials see the virus outbreak has been contained.

As of Tuesday, health officials reported that COVID-19 cases in the country reached 2,084, with 88 deaths and 49 recoveries.

For today, both Mr. Ricafort and the trader expect the peso to trade within the P50.70 to P51 range versus the dollar.

Meanwhile, Asian currencies eased on Wednesday as investors braced for a steep economic slump in the wake of lockdowns in many countries to contain the coronavirus’ spread, although losses were limited by the US Federal Reserve’s move to increase dollar liquidity, Reuters reported.

The Fed on Tuesday broadened the ability of dozens of foreign central banks to access US dollars during the coronavirus crisis by allowing them to exchange their holdings of US Treasury securities for overnight dollar loans. — L.W.T. Noble with Reuters

Stocks climb on expectations of slower inflation

THE MAIN INDEX sustained its climb yesterday as investors focused on expectations that inflation slowed in March amid the virus outbreak.

The 30-member Philippine Stock Exchange index (PSEi) picked up 87.29 points or 1.64% to 5,408.52 on Wednesday. The broader all shares index also gained 41.04 points or 1.26% to 3,278.81.

“Philippine shares started the second quarter on an optimistic note as investors are hoping the market has bottomed, with many strategists expecting a ‘V’ shaped recovery, a sharp drop in GDP (gross domestic product) in the (second quarter) and a swift snapback in the (third quarter),” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

The Bangko Sentral ng Pilipinas (BSP) said on Tuesday it expects March headline inflation to ease to 2-2.8% from 2.6% in February. The driver would be the drop in oil prices and the stable food prices due to the implementation of a price freeze amid the declaration of a state of calamity in the country.

Like Mr. Limlingan, Philstocks Financial, Inc. Research Associate Claire T. Alviar pointed to this reason to be among the confidence boosters of investors in yesterday’s trading.

She added the expansion of China’s manufacturing output was also a catalyst for growth, after the country reported a Purchasing Managers’ Index (PMI) of 52 in March earlier this week, exceeding expectations.

“Service sector had the biggest gain today given the slower inflation forecast of BSP as investors anticipate that this sector would benefit the most… This pushed the market in the green territory, despite World Bank’s 3% GDP growth forecast for the Philippines in 2020,” Ms. Alviar said in a text message.

Services rose 27.02 points or 2.26% to 1,219.06 on Wednesday. Other sectoral indices also advanced: holding firms by 94.39 points or 1.80% to 5,327.91; mining and oil by 56.25 points or 1.35% to 4,218.15; financials by 15.77 points or 1.28% to 1,239.41; property by 29.69 points or 1.08% to 2,777.99; and industrial by 50.92 points or 0.80% to 6,412.63.

Value turnover ended at P5.58 billion with 498.18 million issues switching hands, down from Tuesday’s P7.42 billion with 546.31 million issues.

Some 99 names ended higher, 87 names ended lower, and 41 names ended unchanged yesterday.

Net foreign selling narrowed to P418.75 million on Wednesday from P634.52 million on Tuesday.

Meanwhile, Wall Street’s three major indexes tumbled on Tuesday, with the Dow registering its biggest quarterly decline since 1987 and the S&P 500 suffering its deepest quarterly drop since the financial crisis on growing evidence of massive economic damage from the coronavirus pandemic.

The Dow Jones Industrial Average fell 410.32 points or 1.84% to 21,917.16; the S&P 500 lost 42.06 points or 1.60% to 2,584.59; and the Nasdaq Composite dropped 74.05 points or 0.95% to 7,700.10. — Denise A. Valdez with Reuters

Imports needed for COVID-19 fight declared tax-exempt

IMPORTED GOODS, supplies and equipment, including test kits and protective equipment needed for containing the coronavirus disease 2019 (COVID-19) outbreak, as well as imported materials needed to manufacture these products have been declared exempt from all taxes, duties and fees, the Bureau of Customs said.

In Customs Administrative Order (CAO) 07-2020 released Wednesday, the BoC said such imports are exempt from value-added tax (VAT), excise tax and other fees.

The exemption was also outlined in Revenue Regulations (RR) No. 6-2020, which was also issued Wednesday.

According to CAO 07-2020 and RR 6-2020, these tax exemptions will be implemented and “in full force” during the three-month validity of Republic Act. No. 11469 or the “Bayanihan to Heal as One Act.”

The exemption covers COVID-19 testing kits; personal protective equipment (PPE) such as gloves, gowns, masks, goggles, and face shields; surgical equipment and supplies; laboratory equipment and reagents; and medical equipment, devices and tools, as well as other items to be identified by the Department of Health (DoH).

Other imported items declared exempt were medical consumables such as alcohol, sanitizers, tissue, thermometers, hand soap, detergent, sodium hypochlorite, cleaning materials, povidone iodine, and common medicines such as paracetamol, mefenamic acid, vitamins, hyoscine, oral rehydration solution and cetirizine.

Further, “importation of materials needed to make health equipment and supplies deemed critical or needed to address the current public health emergency” are also exempt from taxes, duties, VAT, excise tax and other fees.

Only manufacturers in the “master list” of the Department of Trade and Industry and other incentive-granting bodies can avail of the exemption, the BoC said.

“Donations of these imported articles to or for the use of the national government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the government are exempt from donor’s tax and subject to the ordinary rules of deductibility under existing rules and issuances,” according to RR 6-2020.

CAO 07-2020 and RR 6-2020 implement Section 4 (o) of the “Bayanihan to Heal as One Act,” stating to “liberalize the grant of incentives for the manufacture or importation of critical or needed equipment or supplies for the carrying-out of the policy declared herein, including healthcare equipment and supplies: Provided that importation of these equipment and supplies shall be exempt from import duties, taxes and other fees.”

Even before the issuance of the implementing rules, Customs Assistant Commissioner Vincent Philip C. Maronilla said in a mobile phone message that the bureau has been implementing the tax exemption “provisionally.”

Separately, the BoC said Tuesday that it seized P15 million worth of alleged smuggled personal protective equipment in Manila, recovering gloves, facemasks and goggles.

“Smuggled PPE may pose a health risk to users since such items may not comply with the safety standards set by the government rendering them not fit for human utilization,” the BoC said in a statement Wednesday.

As of Tuesday, the BoC processed more than 3,800 shipments of PPEs.

Also Wednesday, the BoC released CAO 06-2020 implementing conditional tax or duty-exemption on imports of coffins and urns, among other items. — Beatrice M. Laforga

Fitch Solutions reduces PHL consumer spending 2020 growth outlook

FITCH SOLUTIONS Macro Research said it reduced its 2020 consumer spending growth estimate for the Philippines to 6.7% from 7% due to the lockdown imposed on Luzon to contain the coronavirus disease 2019 (COVID-19) outbreak.

Fitch Solutions said spending will be focused on food and health-related products, depressing purchase activity for items deemed less essential like clothing, footwear and appliances.

In a note issued Tuesday, Fitch Solutions said the new estimate is also lower than the 9.8% rise in consumer spending in 2019.

It said the assessment was based on spending patterns observed during the China lockdown in January and February and the social distancing measures in South Korea.

“We expect this to hold even for non-essential e-commerce shopping online (e.g. for clothing and footwear), due partly to the aforementioned ‘prioritizing’ mindset among consumers, and partly due to delivery companies prioritizing the delivery of the increased essential food and grocery orders over those of non-essential goods,” Fitch Solutions said.

The month-long enhanced community quarantine (ECQ) was initially implemented in Metro Manila on March 15 and was then expanded to Luzon. It will run until April 12 if the outbreak is controlled by that time. Fitch Solutions said the lockdown “could be extended, given initial difficulties implementing the measures and confusion over what restrictions were in place.”

Fitch Solutions is of the view that the first fiscal stimulus package worth P27.1 billion may not have a “considerable” impact on the economy or consumer spending.

The P27.1 billion stimulus program announced by economic managers early in the lockdown was focused on supporting the tourism sector. The program also includes a package for the health sector and some subsidies for affected workers and establishments.

“For scale, Malaysia, with less than one third of Philippine’s population, announced a stimulus package worth $57 billion (about P2.9 trillion) on March 27.”

Fitch Solutions said that the P200 billion package for vulnerable Filipinos recently announced by President Rodrigo R. Duterte may help to boost consumer spending outlook in the second half of 2020 and in 2021.

Mr. Duterte said Monday that the government has allotted P200 billion to aid low-income households to support those who may have been thrown out of work during the lockdown.

Cash assistance for the vulnerable population will range from P5,000 to P8,000.

Fitch Solutions downgraded its 2020 growth outlook for the Philippines to 4% in late March from an earlier forecast of 6% mainly due to the outbreak’s impact on tourism, remittances, the supply chain, and foreign direct investment. If realized, this projection will be lower than the 5.9% recorded in 2019 and the official target of 6.5% to 7.5% set by the government. — Luz Wendy T. Noble

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