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Rates of T-bills, T-bonds to rise as investors prefer to hold cash

GOVERNMENT SECURITIES on offer this week will likely fetch higher rates as investors prefer to hold on to their cash amid the rising number of coronavirus disease 2019 (COVID-19) cases in the country and its potential impact on the economy.

The Bureau of the Treasury (BTr) will attempt to raise P20 billion via Treasury bills (T-bills) on Monday: P6 billion each for the 91- and 182-day T-bills and P8 billion via 364-day securities.

On Tuesday, the BTr will offer P30 billion worth of fresh seven-year Treasury bonds (T-bonds).

A bond trader said rates on the T-bills may rise 10 to 15 basis points against the previous auction’s yields, while rates for the seven-year bonds may settle around five percent.

“For [this] week, we expect the auction to fetch higher yields on weak demand due to concerns on the COVID-19 crisis, they (investors) prefer cash,” the bond trader said on Friday via telephone.

In the previous T-bill auction on March 16, the Treasury rejected all bids for the 91-day papers as the tenor was undersubscribed, attracting only P4.97 billion in bids versus the P6-billion program. Had the Treasury made a full award, the average rate for the three-month papers would have settled at 3.6%.

The government fully awarded the P6 billion it offered in 182-day T-bills and P8 billion in 364-day papers amid lower average yields of 3.398% and 3.557%, respectively

At the secondary market on Friday, the seven-year T-bond was quoted at 4.9%, while yields on the 91-, 182- and 364-day T-bills were at 3.199%, 3.422% and 3.721%, respectively, according to the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.

Another bond trader said one reason for investors’ preference for cash recently is that some might be “short of cash” amid fears over COVID-19 and as the month-long lockdown for Luzon continues to disrupt business operations.

National Treasury Rosalia V. de Leon assured that amid disruptions, slowing economic activity and the 30-day lockdown, the government has enough cash on hand after raising P310.8 billion from its sale of three-year retail Treasury bonds (RTBs) early last month as well as the series of full awards that the BTr made in previous auctions.

“It’s (lockdown) only one month. We have cash stashed from RTB and full award auctions. Hoarded cash already. We are so good in what we are supposed to do,” Ms. De Leon told reporters via Viber.

President Rodrigo R. Duterte placed Luzon under enhanced community quarantine until April 13 to slow the spread of COVID-19 that has infected 380 and killed 25 people in the country as of Sunday morning.

The Treasury has set a P420-billion local borrowing program this quarter, broken down into P240 billion in T-bills and P180 billion via T-bonds.

The government plans to raise P1.4 trillion this year from local and foreign lenders to plug its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — Beatrice M. Laforga

Cinemalaya film fest postponed

THE 16th Cinemalaya Independent Film Festival scheduled for August has been postponed as the COVID-19 pandemic poses “safety and health hazards” to filmmakers trying to make their deadlines, the Cinemalaya Foundation Inc. said in a statement.

“This crisis puts into sharp focus the readiness of our industry with regards the health and safety of its constituents and Cinemalaya will work with agencies and organizations to address this gap,” the foundation said in the statement posted on festival director Chris B. Millado’s Facebook page on Saturday.

“The organizers will also consider solutions for mitigating the economic loss that stakeholders of the festival absorbed. The festival programmers are also looking for alternative ways of delivering content to the public using online technologies,” it added.

Considered the largest independent film festival in the country, Cinemalaya announced last year the 10 finalists for the festival’s competition section, each of whom will get a P1-million seed grant released in tranches.

The festival was originally scheduled to run from Aug. 7 to 16 at the Cultural Center of the Philippines and select cinemas.

The 2020 finalists for the full-length section are: Ang Halimaw by Emmanuel Q. Palo, Angkas by Rainerio Samson II, Bakit Di Mo Sabihin (Tell Her) by Real Florido, Bula sa Langit by Sheenly Gener, Dalagita sa Likod ng Pawikan by Paul Sta. Ana, Kargo by T.M. Malones, Kathoey by Joris Fernandez and Paolo Valconcha, Parole by Briliant Juan, Rhino Girl by Jav Velasco, and Seperate/Separate by David Corpuz. — ZBC

D&L raw materials output goes on

LISTED manufacturer D&L Industries, Inc. said it continues to produce raw materials used in food and sanitation products to help provide the public’s needs amid the coronavirus disease 2019 (COVID-19) pandemic.

In a statement over the weekend, the Lao-led company said it is maintaining operations during enhanced community quarantine in Luzon “to prevent any disruption in the supply of raw materials.”

D&L manufactures customized food ingredients that are used in canned goods, noodles, biscuits and other shelf-stable snacks. It also produces chemicals used in alcohol, disinfectant spray and sanitizers, which are highly distributed products to fight COVID-19.

“We’re working in less than ideal operating conditions right now… But as of now, we’re still able to maintain selected manufacturing capabilities, and I hope will continue to do so until the outbreak has been permanently contained,” D&L President and Chief Executive Officer Alvin D. Lao said in the statement.

“[I]t is our responsibility to keep our employees safe and make sure there are no major disruptions in manufacturing raw materials used in basic food items and sanitation products that are crucial during these times,” he added.

Some D&L employees have already been allowed to work from home during the lockdown. They were also given half of their 13th month pay last week, aside from being promised their full salaries for the month-long quarantine.

D&L booked a net income of P2.62 billion in 2019, 18% lower year-on-year due to reduced sales as an effect of the delayed national budget and the rise in inflation and interest rates. — Denise A. Valdez

The fast and conscientious Porsche Taycan

“SPORTS CAR” and “environment-friendly” do not usually appear in the same sentence and are, in fact, largely dichotomous concepts. But Stuttgart-headquartered Porsche has a clear goal for itself: To become the most sustainable premium sports car manufacturer in the world. The brand is inventing and implementing measures across its entire value chain to avoid (or, at least, reduce) CO2 emissions.

Nothing more clearly embodies this aspiration than the company’s first all-electric sports car, the Porsche Taycan, and its “bespoke, CO2-neutral production facility” in Zuffenhausen.

The all-new Taycan’s fully electric powertrain, of course, produces no emission. The first batch of the model is arriving in some markets, with more arrivals to follow across the globe. Included among the markets where the Taycan will be introduced is the Philippines.

The Taycan is seen to usher in a new era of “networked and flexible” automotive production. At the Zuffenhausen plant, Porsche is using electricity from renewable sources and bio-gas to generate heat. It also employs automated guided vehicle systems instead of traditional conveyor belts to transport components and vehicles from station to station. Even the new production buildings are designed to be extremely energy-efficient too — — adopting green rail transportation solutions and increasing their reliance on electric-powered logistics trucks. All told, the production facility “sets new standards in terms of energy efficiency and environmental friendliness.”

Said Oliver Blume, chairman of the executive board of Porsche AG, “We have a level of responsibility for the environment and society. Production of the Taycan is already carbon-neutral. Heritage meets the future at our parent plant in Stuttgart-Zuffenhausen, which is the heart of the brand.”

The company is “committed to the climate protection targets agreed in Paris in December 2015” and recognizes its “clear responsibility” to cut down on harmful emissions, added Albrecht Reimold, a member of the executive board for production and logistics. He clarified that “sustainability strategy goes much further than decarbonization. Porsche is pursuing the goal of a zero-impact factory — production without any negative impact on the environment,” he said.

The production of the Taycan also sees 1,500 new jobs being created at the Zuffenhausen site, demonstrating that electric-powered mobility is generating employment at Porsche. And even while the company was still constructing the factory and preparing for operations, Porsche had already implemented an unprecedented training program that familiarized employees with the unique aspects of electric vehicles.

The advanced methods used in producing the Taycan, as well as its features, are currently setting the benchmark in sustainability and digitalization. “We promised a true Porsche for the age of electromobility — a fascinating sports car that not only excites in terms of its technology and driving dynamics, but also sparks a passion in people all over the world, just like its legendary predecessors have done. Now we are delivering on this promise,” asserted Michael Steiner, a member of the executive board of Porsche AG’s research and development.

The Taycan, which pairs typical Porsche performance and connectivity with everyday usability, is available in three versions.

The flagship Taycan Turbo S version can generate up to 761ps and has a combined power consumption of 26.9kWh/100 km. It has no CO2 emissions on overboost power (when used with Launch Control). The sports car accelerates from zero to 100kph in 2.8 seconds and has a driving range of up to 412 kilometers.

The Taycan Turbo can deliver up to 680ps and has a combined power consumption of 26kWh/100 km, with no CO2 emissions. It can sprint from zero to 100kph in 3.2 seconds and has a range of up to 450 kilometers. The top speed of the Taycan Turbo S and Taycan Turbo is 260kph.

Joining the two versions is the Taycan 4S — the entry-level variant. Available in the Taycan 4S are two battery sizes. The standard Performance battery can put out as much as 530ps and a combined power consumption of 24.6kWh/100 km, with no CO2 emissions. Driving range is estimated at 407 kilometers.

Referring to the Taycan as a “new Porsche icon,” Mr. Blume said, “It is different to our previous vehicles, yet is still a typical Porsche — innovative, sporty and emotive.”

Yields on government debt climb on coronavirus fears

GOVERNMENT SECURITIES (GS) yields went up across-the- board last week as market players grapple with uncertainties brought by the coronavirus disease 2019 (COVID-19).

On average, GS yields went up by 25.8 basis points (bps) week on week, according to the PHP Bloomberg Valuation Service (BVAL) Reference Rates as of March 20 published on the Philippine Dealing System’s website.

At the secondary market on Friday, yields on the 91-, 182- and 364-day Treasury bills went up 7.5 bps, 3.1 bps, and 6.7 bps, to fetch 3.199%, 3.422%, and 3.721%, respectively.

At the belly, yields on the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) rose by 22.6 bps (4.348%), 27.2 bps (4.536%), 33 bps (4.681%), 38.7 bps (4.797%), and 38.8 bps (4.900%).

Rates on longer-term papers likewise climbed, with yields on 10-, 20-, and 25-year T-bonds up by 26.7 bps (4.940%), 38.5 bps (5.291%), and 40.5 bps (5.301%).

“Local yields rose across-the- board as market participants liquidate positions amid strong cash demand following the implementation of the enhanced community quarantine [last] week. There was also some upward pressure over prospects of fiscal support locally and globally which might entail higher borrowing rates for sovereign issuers,” a bond trader said in an e-mail.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion likewise attributed last week’s yield movements to increasing preference for cash: “Normally, yields should be declining during these uncertain times. But instead, it is moving higher. This may mean that there is a lack of liquidity in the market as investors seek to raise cash.,” he said.

In a separate e-mail, ING Bank N.V.-Manila Senior Economist Nicholas Antonio T. Mapa said local GS yields tracked other markets in emerging economies with a “broad risk-off tone” enveloping Asia.

“Despite central bank action, bonds sold off on extreme uncertainty as markets remain skittish over growth prospects,” Mr. Mapa said, referring to last Thursday’s widely expected policy rate cut by the Bangko Sentral ng Pilipinas (BSP) to shield the economy against the impact of COVID-19.

President Rodrigo R. Duterte placed Luzon under enhanced community quarantine until April 13 in order to contain the spread of the virus in the country.

There were 380 COVID-19 cases in the Philippines as of Sunday morning with 25 deaths.

On Thursday, the BSP’s Monetary Board (MB) slashed policy rates by 50 bps, reducing the overnight repurchase rate to 3.25%. Likewise, overnight lending and deposit rates have been trimmed to 3.75% and 2.75%, respectively.

This latest rate cut follows the 25-bp reduction in February, bringing the cumulative reduction in the BSP’s key policy rates to 150 bps since 2019, almost completely unwinding the 175 bps in hikes implemented in 2018.

The central bank also imposed additional regulatory relief measures amid business disruptions due to the Luzon-wide quarantine meant to contain the spread of the virus. Among these measures, according to BSP Governor Benjamin E. Diokno, include the authorization of “time-bound, temporary relaxation of BSP regulations on compliance reported by banks, calculation of penalties on required reserves, and the single borrower limits.”

For the week, analysts expect yields to continue moving northward.

“Yields might move sideways with some upward bias, especially in the long-term end of the curve, amid rising expectations of expanded fiscal stimulus locally and abroad. However, there might still be downward pressure on short-term yields amid likely aggressive dovish moves from the BSP and other major central banks abroad, particularly the US Federal Reserve and the European Central Bank,” the bond trader said.

ING Bank’s Mr. Mapa said yields “will likely be pushed higher again this week “ until we see a turn in the tide in the fight against COVID-19.”

For UnionBank’s Mr. Asuncion: “We will probably see more of the uptrend but there may be a downward pressure as global central banks try to drive rates lower.” — Jobo E. Hernandez

Pork, poultry supply estimated good for five months’ consumption

PORK and poultry producers said the supply of their produce is ample for Luzon, especially Metro Manila, with large inventories in cold storage supplementing available livestock estimated as good for five months’ consumption.

In a statement, the Pork Producers Federation of the Philippines, Inc. said hog producers will be able to meet demand.

ProPork President Edwin G. Chen said the association is working with government agencies to ensure pork products are delivered in steady volumes and readily available in the markets.

“We have more than enough supply. And we continue to work hard to make sure the Philippines has food resiliency and we as producers can put safe food on the tables of every Filipino,” Mr. Chen said.

The Samahang Industriya ng Agrikultura Chairman Rosendo O. So estimated the pork and poultry products supply as good for at least five months’ consumption, based on estimates by the National Meat Inspection Service.

He added that frozen pork inventory in accredited cold storage facilities, was ample at 43,398 metric tons (MT), while poultry products were at 56,521 MT, higher month-on-month and year-on-year.

As of January, the hog herd was 12.80 million head, according to the Philippine Statistics Authority.

“Our farms are filled with hogs and poultry. Even cold storage facilities across the country have many supplies,” Mr. So said.

The Department of Agriculture estimated that Metro Manila’s weekly demand for poultry and meat was 7,394 MT while the committed weekly supply was 11,074 MT, with Regions II, III, and IV-A being the top providers. — Revin Mikhael D. Ochave

GMA adjusts programming because of quarantine

GMA Network announced that it has adjusted its programming starting March 21 due to the Luzon-wide enhanced community quarantine which was imposed because of the COVID-19 pandemic.

“[T]he Network understands that during these times, reliable news and information is greatly needed by the public. As such, viewers could stay up-to-date by watching newscasts and other breaking news on GMA-7, which is now airing a new programming lineup. Beginning tomorrow, March 21, GMA News TV will air DZBB programs and simulcast GMA primetime newscast 24 Oras,” the network said in a statement on Friday.

GMA is currently operating via a skeletal workforce and adapted special work arrangements including working from home for its employees.

“This is in addition to the earlier announced temporary suspension production of all network-produced entertainment programs,” it explained.

GMA Regional TV meanwhile, affirmed that it will still continue to air newscasts for regions outside Metro Manila including Balitang Amianan for North Central Luzon, Balitang Bisdak for Eastern and Central Visayas, One Western Visayas for Western Visayas, and One Mindanao for Mindanao.

GMA Regional TV’s Weekend News will temporarily start airing on GMA-7 every Saturday at 10:30 p.m. starting March 21.

Aside from television, GMA noted that audiences can still tune in via Super Radyo DZBB 594 khz, Barangay LS 91.7 FM, and the rest of Radio GMA stations in the country. People can also get their updates online via GMA News Online alongside the network’s official social media accounts. — ZBC

Petron says fuel supply secure

THE Philippine’s largest fuel refiner said it has a steady supply of its petroleum products during the Luzon-wide enhanced community quarantine.

Petron Corp. on Saturday assured its continuous delivery of fuel supplies from March 17 to April 14 as the government ramped up its fight to prevent the spread of the new coronavirus disease 2019 (COVID-19).

“So far, our entire supply chain is working overtime to ensure that enough products are produced at our refinery. Vessels are continuously loaded so that our terminals are filled, and tank truck operations remain consistent,” Petron President and Chief Executive Officer Ramon S. Ang said in a statement.

“We are also trying our best to keep as many of our stations open and filled as possible while putting the safety and well-being of our employees first,” he added.

There are an estimated 2.7 billion liters of crude and oil products in the National Capital Region as of Feb. 29, according to the Department of Energy (DoE). This inventory can last up to 45 days, which is above the oil industry’s minimum inventory requirement.

Last week, Petron’s parent San Miguel Corp. noted in its disclosure to the Philippine Stock Exchange that there is a possibility of lower demand for fuel as public and private transportation is suspended.

“Such decrease will likely occur for all kinds [of] fuel such as gasoline, diesel, and aviation fuel,” it added.

Besides Petron, competitors Pilipinas Shell Petroleum Corp. and Phoenix Petroleum Philippines, Inc. have also implemented their respective business continuity plans upon the order from the DoE.

Petron supplies nearly 30% of the Philippines’ petroleum requirement via its 180,000 barrel-per-day Bataan refinery, 30 terminals, and over 2,400 stations nationwide. — Adam J. Ang

We don’t need a second skin in our cars

Text and photos by Aries B. Espinosa

THIS IS certainly a great week for meaningful birthdays. For one, it’s Velocity’s anniversary week. For another, I will be observing (yes, not “celebrating,” thanks a lot, social distancing tyrant Covid-19) my own birthday.

Speaking of birthdays, I’d like to think of it as commemorating being born into our one and only real skin. Yes, we clothe ourselves to augment or supplement our “birthday skin,” but nothing comes close to the comfort and protection our own hides provide us. We would not survive without our skin (and imagine how gross we’d look walking around with our insides showing).

Human skin, however, is quite vulnerable to the elements, and as such we have found it necessary to, well, “save our own skins” by using other materials. Primitive humans resorted to using the hide and fur of other animals. Then, with the rise of agriculture, garments were derived from plant fabrics.

Today, thanks to human ingenuity, we can don ourselves with an almost limitless variety of apparel and accessories made from whatever kind of material (yes, even from plastic bags).

Sadly, though, we haven’t completely discarded our stone-age ways, and have continued to use animal skins (leather, fur) for our clothes, and especially on car seats. Ironically, this vestige of primitive human life is considered “premium” or “luxury.”

It’s all in the perception, and the cycle of marketing, that perpetuates genuine animal leather as something that “adds prestige” to a car.

Would it still be considered prestigious if car marketers witnessed for themselves the cruel slaughter of 56 billion farm animals, year in and year out? Would we still caress genuine leather with fondness if we saw how, every year, more than a billion cows and bulls would face the unspeakable torture of being face-branded with hot irons, electrocuted, beaten and suffocated?

Would you still opt for leather that has been made with the cruelest of methods, even if you knew there were ways to create faux (or imitation) leather that looks and feels like the real thing?

Take, for example, the textile named Piñatex used for vehicle interiors. Piñatex is a natural leather alternative made from cellulose fibers extracted from pineapple leaves, PLA (polylactic acid), and petroleum-based resin, and used in the manufacture of bags, shoes, wallets, watch bands, and seat covers.

Suzuki Ertiga’s elegant seven-seater fabric seats

The Artico man-made leather or the MB-Tex seat upholstery is now used by Mercedes-Benz. Italian-made Alcantara leather, composed of about 68% polyester and 32% polyurethane, giving the appearance and tactile feel of suede, is now used in private jets and in European luxury cars such as Porsche, BMW M, and in the Lamborghini Gallardo LP570-4 Superleggera and Lexus LC500h. Volvo uses its own synthetic fabric T-Tec upholstery.

In a BBC News report in December 2016, it was reported that Paul McCartney, a staunch vegan, purchased a Lexus kitted out with Alcantara.

Plantbasednews.org reported in March 2018 that the Toyota Prius hybrid uses SofTex, a synthetic fabric that mimics leather, and is also proven to be more breathable than its animal-based alternative. Meanwhile, the Tesla Model X offers a variant with alternative ultra-white synthetic leather seating.

It is heartening to see that many car manufacturers are now coming out with non-leather variants, particularly in their entry- to mid-level cars. Synthetic fabrics are truly more suited to our usually hot and humid climates, as these absorb and radiate less heat when exposed directly to the sun and under the hottest times of the day.

Using faux or synthetic leather is not only compassionate, it is also more environmentally sustainable. It eases the demand for more cattle to be raised and take up more real estate via grazing. Every second, a forested area the size of a football field is destroyed forever due to the global expansion of animal farms.

Owning and driving a cruelty-free car, however, entails more than just eliminating the genuine leather in your ride. There are other ways animal products can creep into the car. Tallow, also known as stearic acid, a hard, fatty substance made from rendered animal fat and commonly used in making candles and soap, is also used to toughen tires and tubing. Steel is coated with lubricants made from animal products.

Right now, it’s still virtually impossible to own a car that’s 100% free of animal products. But taking out the genuine leather component already takes out much of the cruelty involved in making one.

I’m just hoping that someday, our inventive and compassionate scientists and auto engineers may finally produce the synthetic products that could practically replace the stearic acid and lubricants sourced from animals. I do hear that Michelin already manufactures tires using plant-based stearic acid, so, hurray for that. I hope other tire makers follow suit.

I do believe in the innate goodness of people. Given the choice, we would rather not inflict harm upon others. The same should apply with the choice of car we own and drive. Getting around shouldn’t cost a voiceless, defenseless being unspeakable pain and, ultimately, its life. We let the horses and cows go free when we invented the horseless carriage. Why stab them in the back and drag them back for their hides, in an enlightened age when we wouldn’t even dare mistreat our beloved animal companions one bit?

Improved sentiment, lower oil prices to boost peso

THE PESO could find support from better market sentiment this week, as governments around the world announced more measures to help cushion the impact of the coronavirus disease 2019 (COVID-19) pandemic.

On Friday, the peso ended trading at P50.97 per dollar, recovering by 13 centavos from the P51.10 finish on Thursday, according to the website of the Bankers Association of the Philippines.

However, it weakened by 33 centavos from its P50.64-per-dollar close on March 13.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the peso’s rebound came after governments around the world moved to respond to the pandemic.

“The peso came in stronger as markets were better as an unprecedented stew of fiscal stimulus measures were pledged to be undertaken by governments and central banks worldwide. This is also true on the domestic front,” Mr. Asuncion said in a text message.

Among these moves is the latest rate cut from the Bangko Sentral ng Pilipinas (BSP), according to Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort.

“The latest [50-basis-point (bp)] BSP rate cut supports sentiment on the local economy and financial markets…,” Mr. Ricafort said in a text message.

The latest cut by Monetary Board reduced the overnight reverse repurchase, overnight lending and deposit rates to 3.25%, 3.75%, and 2.75%, respectively.

The move followed the BSP’s decision to reduce key rates by 25 bps in February.

On the fiscal side, the Economic Development Cluster last week announced a P27.1-billion spending package to help sectors affected by the pandemic which has caused Luzon to be placed under enhanced community quarantine. The funds will support the tourism industry, give aid to farmers, and to purchase more testing kits, among others.

BSP Governor Benjamin E. Diokno said on Sunday that falling oil prices will also help prop up the peso.

In an interview with ABS-CBN News Channel or ANC, Mr. Diokno said the peso will benefit from lower oil prices amid a decline in demand because of the virus outbreak.

“It (the peso) is steady, as you can see now. With…oil prices going down…, we’re benefiting from this. I think we’ll be okay,” Mr. Diokno said.

This week, the market will continue to monitor developments on the virus outbreak and how authorities around the world are supporting affected sectors.

“Major stimulus would be any additional stimulus measures by various governments around the world to combat the adverse effects of the coronavirus concerns on the global economy and financial markets,” Mr. Ricafort said.

UnionBank’s Mr. Asuncion said he is positive the local unit will be resilient this week, especially if the market sees more stimulus measures from the government.

“I expect the peso to hold up as long as the market senses the efforts of local institutions in supporting sentiment and the market in general,” he said.

Various business groups have urged Congress to deliver a fiscal response in view of the pandemic.

In a statement, they said the maximum fiscal response should include, among others, an increase in funds for conditional cash transfer recipients and additional support for the Department of Labor and Employment to support workers affected, and an increase in public investment spending just like what Germany will be doing.

Local health officials said that 73 new infections were recorded as of Sunday morning, raising the total to 380. Meanwhile, casualties totaled 25.

COVID-19 has already infected more than 300,000 globally, with over 13,000 deaths, while more than 95,000 have recovered.

For this week, RCBC’s Mr. Ricafort gave a forecast range of P50.70 to P51.20, while UnionBank’s Mr. Asuncion sees the peso moving between P50.70 to P51 against the dollar. — L.W.T. Noble

NY fashion labels turn to making face masks to fill health care shortages

NEW YORK fashion designers are offering to produce masks and gowns to help fill the shortage of protective equipment needed to deal with the expanding coronavirus outbreak.

Designer Christian Siriano told Governor Andrew Cuomo on Twitter that his sewing team is available to pitch in after the governor’s plea for protective equipment. Cuomo responded with his own Tweet urging more designers to come forward. The winner of Project Runway’s fourth season posted a video showing a prototype of the mask.

The American Apparel & Footwear Association, an industry trade group, said some members are converting production lines to produce much-needed equipment. It declined to name the companies.

Hedley & Bennett, which makes clothing for chefs and restaurant workers, offered to make face masks and gowns at its 16,000-square-foot facility in Los Angeles. Pamela Barsky, an East Village designer whose tote bags have a cult following, said her small production team could make 500 masks a day.

Recreational sewers are also joining. A family of medical professionals in the Boston area set up a volunteer mask sewing group and received thousands of messages from volunteers. New York-based hobbyists also sprung into action after the governor’s press conference on Friday, taking to Twitter to offer their services.

Some New Yorkers were ahead of the curve. Berchell Egerton, 28, was selling homemade face masks in Union Square for $5 a pop last Saturday. He started selling the colorfully printed cotton masks for $15 a few years ago.

Egerton dropped prices in light of the coronavirus outbreak. Halfway through his stint in Union Square, Egerton had sold 33 masks and was already planning to make P95-style respirator masks as soon as an order of filters arrived. — Bloomberg

Shares may drop further as coronavirus spreads

By Denise A. Valdez
Reporter

LOCAL SHARES are expected to decline further this week as the country continues its efforts to stop the spread of the coronavirus disease 2019 (COVID-19).

The 30-member Philippine Stock Exchange index (PSEi) improved 155.34 points or 3.36% to 4,778.76 on Friday. But this is lower by 1,015.18 points or 17.5% on a weekly basis, marking the fourth week the PSEi moved downward.

Value turnover during last week’s three-day trading week averaged P7.51 billion, 3.7% up from a week ago. Net foreign selling stood at P1.27 billion from P748.05 million the previous week.

Trading was suspended from March 17-18. It recorded its biggest single-day drop of 711.95 points or 13.34% to 4,623.42 when it reopened on Thursday. It also fell by as much as 24.29% to 4,039 in the intraday that day.

“[W]e expect another volatile week ahead in the market, and bias on the downside as COVID-19 cases in the Philippines are mounting and showing no sign of subsiding yet,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message. “Many investors will still rush to have cash on hand due to the enhanced community quarantine in Luzon, which can drag the bourse further.”

The Health department reported 380 confirmed cases of COVID-19 in the Philippines as of Sunday morning. The virus has already killed 25 patients, while 15 have recovered from the illness.

Online brokerage 2TradeAsia.com said the effort of the government to put Luzon on lockdown will have to come at the expense of economic growth.

“Authorities are therefore in a precarious (and unprecedented) balancing act, leaving markets to spiral into speculation, and price-in longer storms,” it said in a note.

It noted that the problem remains a medical issue, therefore stimulus packages that try to pump out liquidity, while appreciated, may not be enough in the end. “[W]ith no hands to deploy said liquidity at the household level, markets will have to digest paltry earnings expectations, and favor safer heavens, at least for now,” 2TradeAsia.com said.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said on Friday that he expects growth to fall within just 5-5.5% this year, below the government’s 6.5-7.5% target. Philstocks’ Ms. Alviar said this may cause a weakening in investor sentiment as the market prices in this new outlook following earlier forecasts of strong economic growth.

2TradeAsia.com said what could help lift the market are investors hunting for sectors whose cash flow models are insulated, like telecoms and companies operating outside Luzon. Another are those betting on the recovery of worst-hit stocks like airlines.

“Advocates of the same with ample liquidity and stretchable time horizons will see the dip as opportunity to arbitrage the time difference (albeit gradually),” it said. It put immediate support at 4,000 and resistance at 5,000.

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