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Sugar industry seen competitive in 5-10 years with SIDA funding

FUNDING authorized by the Sugar Industry Development Act (SIDA) is sufficient to make the sugar industry competitive after 5-10 years, sugar industry stakeholders said.

“Let us first use what we have in SIDA, so that we can fast-track it, streamline the implementation of the program,” Tatak Kalamay Spokesperson Raymond V. Montinola said in a phone interview.

“I think it would be five to ten years in order for us to be really at par with Thailand. Not even at par, just catching up with them,” he added.

Tatak Kalamay is composed of sugar federations, groups of agrarian reform beneficiaries, labor groups, and sugarcane millers.

Republic Act No. 10659, or the Sugarcane Industry Development Act of 2015, provides for a P2 billion annual budget starting 2016 for competitiveness upgrade projects. Some 50% of the funding is allocated for infrastructure; 15% for grants to block farming groups; 15% for socialized credit under the Farm Support and Farm Mechanization Programs; 15% for research and development, capacity building and technology transfer under the Research and Development, Extension Services, Human Resources Development, and Farm Support Programs; and 5% for scholarship grants.

The funds have been underutilized since 2016, which led the Department of Budget and Management (DBM) to slash funding to P1.5 billion in 2017, and to P500 million in 2018 and 2019. For 2020, its proposed budget is P67 million.

However, Mr. Montinola said SIDA funding should be increased over time in order to implement more programs to help the industry.

“Let’s make the P2-billion SIDA fund work first. Fast-track it so that the programs will be implemented, and then after that we will ask for additional funding,” he said.

He said a steering committee of industry stakeholders needs to ensure that programs will benefit each segment of the industry.

“If you are looking at results, you need some sort of a steering committee to know what the results of the solutions are and say what other things we should do to improve it,” he said. — Vincent Mariel P. Galang

T-bill rates likely to drop

TREASURY BILLS (T-bill) on offer on Monday will likely fetch lower rates amid strong liquidity from the reduction of banks’ reserve requirement which will take effect this week and ahead of the October inflation data.

The Bureau of the Treasury (BTr) is looking to raise P20 billion via T-bills today, broken down into P8 billion from the 91-day papers and P6 billion each from the 182- and 364-day securities.

During the previous auction held on Oct. 21, the government raised just P12 billion via the T-bills out of its P20-billion program, even as the offer was almost three times oversubscribed, with tenders reaching P59.8 billion.

The Treasury did not award any three-month papers as its rate climbed. Total bids amounted to P21.65 billion versus the government’s P8-billion offer.

Had the government made a full award of the 91-day T-bills, its average rate would have climbed to 3.122%, 12.7 basis points (bp) higher than the 2.995% fetched during the Oct. 8 auction.

Meanwhile, the government awarded P6 billion as planned in the 182-day T-bills out of bids worth P16.41 billion. The tenor’s average rate inched up by 0.3 bp to 3.174% from the 3.171% recorded previously.

For the 364-day papers, the Treasury likewise borrowed P6 billion as programmed as the tenor attracted demand worth P21.72 billion. The yield on the one-year papers went down by 0.1 bp to 3.576% from the 3.577 seen during the last auction.

Yields on the three-month, six-month and one-year papers ended at 3.172%, 3.308%, and 3.615% last week, based on the PHP Bloomberg Valuation Service Reference Rates as of Oct. 31 published on the Philippine Dealing System’s Web site.

Kevin S. Palma, Robinsons Bank Corp. peso debt trader, sees the rates of six-month and one-year papers declining by five to 10 bps today, while the three-month papers may fetch a slightly higher average rate or end flat.

“Another strong turnout is expected with the effect of the RRR (reserve requirement ratio) cut now underway and as investors continue to show appetite for short-term assets amid favorable domestic economic backdrop, with both inflation print for October and GDP (gross domestic product) growth data are to be released this week,” Mr. Palma said in a text message.

“Demand will be further reinforced by reinvestment requirements given some P25-billion worth of maturing T-bills in the next two weeks,” Mr. Palma added.

Meanwhile, Rizal Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort said in a text message that yields may end steady or slightly lower at today’s auction “amid effectivity of RRR cuts in terms of additional peso funds/liquidity into the financial system, market expectations of further slight easing of inflation for the month of October 2019.”

The Philippine Statistics Authority is scheduled to release the October inflation report on Nov. 5 and the third quarter GDP figures on Nov. 7.

Meanwhile, the reserve ratios of universal and commercial banks now stands at 15% following the effectivity of the 100-bp cut in RRR announced in September. Likewise, the RRR of thrift banks is now at five percent, while that for rural banks stands at three percent.

The Bangko Sentral ng Pilipinas announced last month that the reserve ratio of universal, commercial and thrift banks will be slashed by another 100 bps effective December, bringing total reductions to their reserve ratios for this year to 400 bps. This cut will also apply to the reserve ratio of non-bank financial institutions with quasi-banking functions (NBQBs).

This will bring the reserve ratio of universal and commercial lenders to 14% by December, while the RRR of thrift banks will stand at four percent.

On the other hand, the reserve ratio of NBQBs will be cut to 14% next month.

The government is set to borrow P220 billion from the local market this quarter, broken down into P100 billion in T-bills and P120 billion via Treasury bonds.

It is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of the country’s gross domestic product. — B.M. Laforga

It’s beginning to look a lot like Christmas

NOW THAT Halloween and All Saints’ Day are out of the way, it’s officially time for Christmas — though one might argue that in the Philippines, Christmas begins at the start of September (and maybe even the last week of August). And to celebrate and spread the holiday cheer, Rustan’s has lit up its flagship store windows in Makati, with decorations revolving around the theme of “The Sweetest Christmas.”

“‘Sweetest Christmas’ is really all about the sentiment of the season. So it’s about the sweet memories that we create during [the holidays], it’s about traditions, but tradition is about memories,” Dina Arroyo-Tantoco, marketing and communications head at Rustan’s, told reporters during the launch of the windows on Oct. 24.

And because the company is celebrating sweetness, the decision was made to deck out the Makati storefront windows like a candy store with jars of candies and an overall theme of pink, red, and white, with blue lights for accent. The display also includes life-sized stuffed toys and smaller teddy bears.

Rustan’s is taking its theme further by giving qualified shoppers who spend a minimum of P15,000 (in a single-receipt transaction until Nov. 30) a special assorted dozen of Krispy Kreme doughnuts. Those who spend P100,000 in a single receipt will get a bottle of Henriot Brut Souverain.

For more information about Rustan’s holiday offers, visit rustans.com or follow its social media pages. — Zsarlene B. Chua

Uy’s DITO targets to take 30% share of telecoms market

NEW telecommunications company DITO Telecommunity Corp. is targeting to corner nearly a third of the market in two to three years, as its officials pointed to recent deals aimed at a speedy delivery of its commitment.

In a statement on Sunday, the China-backed firm said that it aims “to capture 30% of the market within the first few years of operations with its commitment to fully comply with its mandate of providing world-class telecommunications services that the Filipinos deserve.”

DITO Chief Technology Officer Rodolfo D. Santiago said the company targets to achieve the goal in “two to three years.”

The company, which aims to become a major industry player, recently signed agreements with its key contractor-partners and tower providers, China Energy Equipment Co. Ltd. and Filipino-Malaysian Consortium ZEAL Power Construction & Development Corp.

“The promising deals we have entered into are testament to DITO’s commitment to work with all like-minded parties who want nothing more than to deliver fast, affordable and safe internet connectivity that the Filipino people truly deserve,” Mr. Santiago said.

For his part, Adel A. Tamano, DITO chief administrative officer said: “A few weeks ago, we reported that DITO Telecommunity has signed initial memoranda of agreement with SkyCable and Chavit Singson’s LCS Holdings; and we have in fact rejoiced at the groundbreaking of the first-ever common tower in Ilocos Sur. This time we have again signed a number of agreements specifically with China Energy Equipment Co. Ltd. and ZEAL Power Construction and Development Corp., a Filipino-Malaysian Consortium, that will allow us to move faster on our commitment to the Filipino people.”

DITO — which is owned by Dennis A. Uy’s Udenna Corp. and Chelsea Logistics and Infrastructure Holdings Corp. and China’s China Telecommunications Corp. — has a tight timeline to roll out its services to 37.03% of the country’s national population by July 9, 2020.

Within the one-year period, the company must also be able to deliver a minimum broadband speed of 27 Megabits per second (Mbps). If it fails to meet these commitments, Dito’s certificate of public convenience and necessity and radio frequencies will be taken back by the government. — Arjay L. Balinbin

In Camiguin, ‘LS-A’ of the new D-MAX means ‘Lanzones Safely Arrives’

Text and photos by Aries B. Espinosa

ITS SCIENTIFIC NAME is Lansium domesticum. In English and in the vernacular, it’s called lanzones or lansones. In Thailand, it’s called longkong. In Japan, its equivalent is the much more expensive biwa (How expensive? Try P2,500 per kilo).

However which way it’s called, the sweetness and texture is what makes us want more. That was what was swirling in the minds of the nearly 30 participants to Isuzu Philippines Corporation’s (IPC) Media Ride-and-Drive Experience of Camiguin Island on board the new D-MAX LS-A, Isuzu’s latest and most modern iteration of its iconic pickup line.

The days were sunny, interspersed with cotton-candy clouds, and the evenings and mornings were freshened up with light rain during the two days we spent in Camiguin Island on Oct. 10 and 11 — just the ideal weather to test the power, comfort, and ride handling of the new D-MAX pickups on the ruggedly picturesque island-province situated just north of Misamis Oriental, accessible by direct flights from Manila or via a 45-minute RoRo (roll on, roll off) from Balingoan Port, a two-hour shuttle ride from Cagayan de Oro City.

The pickup beds of the D-MAX turned out to be handy, as it was peak harvest season for the delectable lanzones (The week-long Lanzones Festival happens on Oct. 21 to 27), and the kind, forward-thinking Governor Jurdin Jesus M. Romualdo made sure that each of us went home heavy with the fruit.

The island, of course, is about much more than its most famous produce. Despite having a mere land area of just 238 square kilometers (making it the Philippines’ second smallest province after Batanes), Camiguin is home to four stratovolcanoes, the most famous of which is Mount Hibok-Hibok. Past eruptions of these volcanoes resulted in many of the natural and man-made tourist draws, such as the Tres Marias domes, the blue lagoon, the Sunken Cemetery and the Bonbon Church Ruins.

It’s the island’s fiery origins and mountainous terrain that also drew in IPC over 16 years ago to test-drive the D-MAX’s immediate predecessor, the Isuzu Fuego. The model name, which literally translates to “fire”, experienced the short but rugged roads that circled the island — the same roads that the 2020 D-MAX LS-A pickups were now traversing.

The times may have differed 16 years apart, but the experience of the island haven’t been that different. The only big difference was the ride we were in.

The New D-MAX LS-A set out to prove it was “tough enough for anything,” and barring any volcanic eruptions during our stay, the pickups did show it could take on what one of the most rugged island-provinces of the Philippines could bring, and still treat the driver and occupants like royalty.

The New D-MAX LS-A is powered by the powerful and fuel-efficient 4JJ1-TCX 3.0-liter 4-cylinder In-line Blue Power Diesel engine with VGS turbo intercooler that generates 177 PS @ 3,600rpm and maximum torque of 380Nm @ 1,800-2,800rpm. Available in the 4×2 and 4×4 MT and AT variants, the D-MAX LS-A drivetrain consists of either the 6-speed automatic transmission with sequential shift or the 6-speed manual transmission with gear shift indicator.

Comfortable, stable and confident handling was achieved with the rack-and-pinion power assist and tilt adjust steering, independent double wishbone with coil spring and stabilizer for the front suspension, and semi-elliptical leaf spring for the rear.

For its exterior, the New D-MAX LS-A is distinctive with the aggressive-looking very dark gray radiator grille with engine hood garnish, front bumper guard and one step type black rear bumper, power folding side view mirrors in dark gray finish with LED integrated turn signal, and LED rear combination lamp. The under-rail bedliner, cargo extender, roof rail, fender lip-type over fender, and side molding all come standard.

The stylish and functional character of the New D-MAX LS-A continues in the interior’s electroluminescent-type instrument meters with Multi-Information Display (MID), 8-inch full-touch monitor/CD/DVD/Tuner/Bluetooth and iPod connectivity/Aux-in/USB/MP3 Compatible/AV-in/TPMS ready/USB-link/WiFi display, navigation system, and three-spoke leather-wrapped steering wheel with hands-free function and audio controls. The bucket seats with adjustable headrest, back pockets and convenience hook (1st row) and the 60/40 split cushion 2nd row seats with two adjustable headrests and center arm rest are all wrapped in leather.

The New D-MAX LS-A is equipped with numerous safety features: Dual SRS air bags, child seat tethers for the 2nd row, side door impact beams, Anti-lock Brake System (ABS), Electronic Brake Force Distribution (EBD), Brake Assist (BA), Brake Override System (BOS), Hill Start Assist (HSA), Hill Descent Control (HDC), Child-proof rear door locks and reverse camera.

For occupant comfort and convenience, the New D-MAX LS-A is equipped with the auto-climate control air-conditioning system, passive entry/push start-stop system, 12V accessory socket, three USB charging ports, 15 storage compartments and 10 cup holders, and tow hooks for the front-driver and passenger side and one at the rear (for the LS-A 4×4 variants).

IPC President Hajime Koso, in his welcome remarks to the participants, shared that this was his first time to visit Camiguin, and he saw the rugged beauty and progressive eco-tourism programs of the island as “a perfect fit” for the New D-MAX LS-A.

“The Isuzu D-MAX LS-A with Blue Power Diesel engine is our answer to the clamor of our customers for reliable, hardworking but fuel-efficient vehicles. This represents nearly a century of Isuzu’s experience and innovation in the design, engineering, and workmanship of diesel-powered utility vehicles. The D-MAX LS-A is infused, as well, with features that address the demands of a market that value both hard work and play, business with leisure.”

On board the 4×2 and 4×4 variants of the New D-MAX LS-A, our group convoyed to the island’s top attractions: The Taguines Lagoon; the island’s interior featuring the towering and still active stratovolcano Mount Hibok-Hibok and Tres Marias lava domes; refreshing Tuasan Falls; Lanzones Farm; the Bonbon Church ruins and the Sunken Cemetery, where the remnants of a graveyard and a town destroyed and sunk into the sea by the explosive birth of nearby Mt. Vulcan in the 1870s provided the solemn foreground to a magnificent sunset.

The second day of the trip saw the group spend the morning on the powder white sandbar, a mere 15-minute speedboat ride on the clear blue Bohol Sea.

IPC’s return engagement with fiery Camiguin and its cheerful people was a fun event powered by the New D-MAX LS-A pickups. More importantly, the New D-MAX LS-A makes it possible to extend the fun driving and riding to what we do outside the cabins.

To know more about the New D-MAX LS-A and IPC’s full roster of vehicles, log on to www.isuzuphil.com.

Negros Occidental plans permanent ban on Luzon pork; claims province is self-sufficient

THE Negros Occidental government is looking into imposing a permanent ban on entry of pork and pork products from African Swine Fever (ASF)-affected areas as a means to protect the province from the continuous spread of the virus.

“We have an existing order temporarily banning (entry) until Dec. 18. We have to have a permanent law or ordinance preventing the entry because we understand that ASF cannot be eradicated in 10 to 20 years in Luzon. We have to have a law penalizing those people who bring in contaminated meat,” Negros Occidental Chief Veterinarian Renante J. Decena said in a chance interview.

According to the Philippine Statistics Authority (PSA), the province ranked ninth in swine production in 2017 with 55,979 metric tons (MT), liveweight, which accounted for 2.47% of total production that year of 2.265 million MT, liveweight.

It had the fourth-largest herd in 2017 with 512,206 head, or 4.12% of the total population at 12.427 million head.

“We have surplus in terms of production. We also have a processing plant in Negros Occidental that could produce 1,000 hams per day. We can manage with our own food security program in terms of livestock,” he said.

He said in a text message that the provincial board finalized the ordinance in a Thursday meeting, which is set to be implemented within the month. All pork and pork products from affected areas in Luzon, as well as from other countries, are prohibited to enter the province. The use of food waste is also banned for hog raisers.

“We will impose a penalty or fine of not less than P1,000 but not exceeding P5,000 or imprisonment of not less than six months but not exceeding one year or both at the discretion of the court,” Mr. Decena added.

The province is one of the local government units bannning the entry of pork products from Luzon after the ASF outbreak, with bans currently in force in 65 of 80 provinces.

The Department of the Interior and Local Government (DILG) has encouraged LGUs who have imposed the ban to lift such orders to facilitate the movement of the meat processing industry’s products. The industry has estimated that it will lose more than P40 billion in sales if LGU bans remain in place.

Cavite, which was once part of the list, has announced that it was lifting its ban, through Executive Order No. 34 dated Oct. 24. — Vincent Mariel P. Galang

adidas releases Star Wars collection and Beckham Ultraboost 19

NOVEMBER 1 was a busy day of drops for adidas as it launched the latest iterations of its popular shoe lines.

Unveiled that day were the Ultraboost 19 DB99, which pays homage to football great David Beckham, and its Star Wars collection featuring three packs across adidas Basketball, Running, and Originals.

The Ultraboost 19 DB99 focuses on the legendary career of Mr. Beckham, particularly the year 1999, where “he unleashed himself to the world.”

That year, he reached the peak of his career ladder, including helping Manchester United win the English Football Treble, while also starting his loving family with former Spice Girls member Victoria Beckham.

The Ultraboost 19 DB99 was inspired by the initials of David Beckham and the number 99 (for the year 1999).

Through the shoe, adidas said, it is embodying the spirit of unleashing one’s potential with a fashion forward attitude.

The limited-edition Ultraboost 19 shoe has “DB99” printed on the tongue label and on the sole.

Compared to previous models in the Ultraboost series, the Ultraboost 19 range has adopted a lighter fabric. The breathing pads on the sides and the sole have been enlarged to enable breathability while training.

A streamlined shape has been used on the outline, while smooth lines are found on the top and the sole.

The Ultraboost 19 DB99 has inherited the technological advances of the Ultraboost range, which cares for the foot in action. The Primeknit 360 Vamper is a unique cut that is designed to enable an easy and comfortable exercising experience; the insole features the BOOST Technology, which moves seamlessly with the runner from set off; the built-in Torsion Spring system, located in the midsole, maintains the stability of the runner when the foot lands — enabling an energetic workout experience.

The Star Wars collection of adidas was done in collaboration with Lucasfilm, the creator of the popular and blockbuster film series.

“[The year] 1999 was an important year for me, in terms of both career development and personal life. So, this pair of shoes is extraordinarily special to me,” said Mr. Beckham in a release. Adding, “The colors chosen for the design are white with a flash of orange. I have always loved white trainers. The eye-catching fluorescent orange and the letters DB99 in black are a perfect match.”

The adidas Ultraboost 19 DB99 retails for P9,300. For more details, check out the adidas official Web site.

STAR WARS COLLECTION
Meanwhile, adidas’ Star Wars collection was done in collaboration with Lucasfilm, the creator of the popular film series.

The footwear and apparel collaboration features three packs across adidas Basketball, Running, and Originals which celebrate an element of Star Wars, including lightsabers, starships, and classic Star Wars characters.

Inspired by the unbreakable bond between a Jedi and their lightsaber, the Lightsaber-themed pack’s design is highlighted by cyber crystal-themed elements that are featured on each silhouette’s UV midsole.

The pack features eight custom basketball iterations: The Harden Vol. 4 is designed with purple accents and pays homage to Mace Windu, while the Dame 5 takes inspiration from Luke Skywalker’s green lightsaber.

The Rivalry Lo design sheds light on Darth Vader and the dark side, while the classic Top Ten design is dedicated to the legendary Jedi hero, Obi-Wan Kenobi.

The collection also includes a juniors’ edition of D.O.N. Issue #1, in addition to Pro Next which features characters from both the light side and dark side of the Force. Unique Star Wars detailing is featured throughout all silhouettes including Aurebesh callouts, stamping the footwear with the official written system of the galaxy.

To complement the Lightsaber-themed pack, the apparel capsule includes hoodies, crewnecks, and sweatpants.

The Lightsaber-themed pack was released on Nov. 1 at adidas.com.ph and select adidas stores, with prices ranging between P2,600 and P7,000. — Michael Angelo S. Murillo

MPTC submits technical plan for spur road to Sangley

A TECHNICAL proposal to build a five-kilometer spur road from Cavite Expressway (CAVITEx) to Sangley, Cavite has been submitted to the Toll Regulatory Board (TRB), the project’s proponent said.

“We have a proposal na (already). We submitted that technical proposal two weeks ago, ’yung (the) spur [road] going to Sangley,” said Metro Pacific Tollways Corp. (MPTC) Chief Financial Officer Christopher Daniel C. Lizo told reporters.

He was referring to the spur road that will connect CAVITEx to the Danilo Atienza (Sangley) Air Base.

Mr. Lizo said MPTC was waiting for the details of the Cavite provincial government’s development plans for the Sangley Airport.

“’Yung Sangley Airport development ang importante (The Sangley Airport development is important). We need to understand what’s being done with the Sangley Airport,” he said.

On Tuesday last week, Cavite Governor Juanito Victor C. Remulla said five Philippine companies and one Chinese firm had expressed interest in expanding Sangley Airport, upgrading it to international gateway status.

He identified some of the interested parties as Metro Pacific Investments Corp., D.M. Consunji, Inc. and China Construction Co.

The expanded airport, which will cost around $10 billion, will have four runways and will be able to handle 100 million passengers a year, he said.

As for the timeline, he said: “The groundbreaking is on Jan. 15. The first runway will be completed in three years and then the fourth runway we plan (to be up and running) in six years.

In August, Roberto V. Bontia, president of Cavitex Infrastructure Corp. (CIC), said a joint proposal on the construction of the Sangley spur road with the Philippine Reclamation Authority (PRA) was in the works for submission to the TRB.

PRA is CIC’s joint venture partner in operating CAVITEx. Part of its concession is the construction of a CAVITEx Segment 5, which was originally an extension of the toll road from Kawit to Noveleta.

However, the Department of Public Works and Highways built a road on the supposed alignment of Segment 5 in 2015, pushing the operators to look for an alternative to it.

Mr. Bontia said earlier that CIC was looking at a 22-kilometer, three-part alignment for Segment 5. It will connect Kawit to Noveleta, Kawit to Sangley and Noveleta to Rosario, with a spur road to the Cavite Export Processing Zone.

Mr. Lizo estimated that the spur road project is about five kilometers from Kawit to Sangley.

The whole Segment 5 has an estimated cost of P21-22 billion, of which the link to Sangley is priced at approximately P10 billion.

CIC is under Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp., which is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., others being PLDT, Inc. and Philex Mining Corp.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Yields on gov’t debt flat on Fed cut

YIELDS ON government securities (GS) ended flat after the US Federal Reserve cut its rates for the third time this year, as widely expected.

Debt yields, which move opposite to prices, went down by an average of 0.3 basis point week-on-week, according to the PHP Bloomberg Valuation Service Reference Rates as of Oct. 31 published on the Philippine Dealing System’s Web site.

“The local GS market propelled its way to modest gains week-on-week after the US Federal Reserve cut its rates for the third time this year,” Robinsons Bank Corp. peso sovereign debt trader Kevin S. Palma said.

“The market also took cue from BTr’s (Bureau of the Treasury’s) 7-year bond reissuance with its average yield printing at the lower-end of expectations,” he added.

Another bond trader said yields on local bonds went almost flat due to mixed market signals last week.

“Initially yields were lower on expectations of another 25-basis point policy rate cut from the US Federal Reserve, some movement prior to the Nov. 1 cut in the local reserve requirement, and the surprise announcement of another reserve cut in December,” the bond trader said in an e-mail interview last Thursday.

For his part, Rizal Commercial Banking Corp. (RCBC) economist Michael L. Ricafort said that local benchmark interest rates were mostly slightly lower week-on-week due to “already priced in” Fed rate cut.

“Nonetheless, any corresponding cut on key short-term interest rates by other major central banks around the world, including on local policy rates, remains… despite recent signals from the BSP (Bangko Sentral ng Pilipinas) about no more local policy rate cut for the rest of 2019 (after three quarter-point cuts since the start of 2019),” Mr. Ricafort said in an e-mail.

At the end of its two-day meeting last Wednesday, the US central bank slashed for the third time this year its benchmark rates by another 25 bps to a target range of 1.5% to 1.75%.

Meanwhile, the BTr raised P20 billion last Tuesday via reissued seven-year papers with a remaining life of six years and three months. These bonds fetched an average yield of 4.322%, lower by 18.1 bps from the 4.503% quoted during the Sept. 10 auction.

At the end of the trading last Thursday, the rates of the 91-, 182-, and 364-day Treasury bills climbed by 3 bps, 4.4 bps, and 0.7 bp, respectively, to 3.172%, 3.308%, and 3.615%.

The belly of the curve dipped as yields on the two-, three-, four-, five-, and seven-year notes decreased by 0.9 bp, 2.7 bps, 3.8 bps, 4.4 bps, and 4.9 bps, respectively, to 3.881%, 3.999%, 4.126%, 4.259%, and 4.479%.

The long end of the curve ended mixed as the rate of the 10-year debt dropped by 3.6 bps to 4.669%, while yields on 20- and 25-year papers inched up by 4.3 bps and 5 bps to 5.082% and 5.087%, respectively.

Local financial markets were closed on Nov. 1 in observance of All Saints’ Day.

For this week, market watchers said they expect local yields to continue their downward trajectory amid low inflation expectation tempered by likely upbeat third quarter gross domestic product (GDP) print.

“Yields might continue to fall next week mainly due to subdued expectations on the October local inflation reports this week… However, optimism ahead of the Philippine third-quarter GDP report could temper the decline in yields,” the bond trader said.

For his part, Mr. Palma sees bond yields may continue to trend sideways with downward bias this week amid benign inflation as well as a rebound in the third quarter GDP data.

“[L]ocal bond yields could still continue to ease slightly [this week] due to the increase in peso liquidity into the banking system/financial system with the effectivity of the RRR cut and as the financial markets are anticipating for favorable economic data on local inflation for the month of October 2019 and on local GDP growth data for 3Q 2019…,” Mr. Ricafort said. — Mark T. Amoguis

Toyota champions compassionate mobility

Text and photos by Kap Maceda Aguila

AMERICAN WRITER and novelist Pearl Buck once wrote: “Our society must make it right and possible for old people not to fear the young or be deserted by them, for the test of a civilization is the way that it cares for its helpless members.”

It’s become highly apparent that this sentiment underpins what Toyota Motor Corporation (TMC) is doing for quite a while now. At the 2017 staging of the Tokyo Motor Show (TMS), the Japan-headquartered multinational automotive manufacturer declared it had ceased to be a “car company” and was calling itself a “human movement company” — a concept further emphasized by the firm’s President, Akio Toyoda, at last year’s Consumer Electronics Show in Las Vegas, Nevada.

The executive spoke of Toyota becoming a “global mobility company” as he unveiled the “e-Palette mobility-as-a-service concept and a new corporate focus on products and services designed to extend freedom of movement to all,” according to a recent release. The e-Palette is a fully autonomous, battery-electric vehicle which can be used for purposes like ride-sharing, logistics, and mobile shops.

This is not set to debut in the distant future, either. Just like the rest of Japan, Toyota is keen on taking advantage of next year’s staging of the Summer Olympics in Tokyo to flex its muscles. More importantly, it is flexing said muscles on behalf of the infirm or differently abled. This sentiment converges perfectly with an industry push towards the seeming inevitability of autonomous vehicles.

At the Big Sight, venue of the 46th TMS, there were no new market-ready production vehicles on display for Toyota. Rather, the booth was rendered as a “mobility theme park,” with the theme: “Play the Future.”

Earlier, Toyota had bannered its active involvement as a major sponsor of both the Olympic and Paralympic games — highlighted by the words “Start Your Impossible.” The company says this “marks Toyota’s commitment to supporting the creation of a more inclusive and sustainable society in which everyone can challenge their impossible. The fully integrated campaign also highlights Toyota’s mission to create a barrier-free society, and reinforces the company’s values of humility, hard work, overcoming challenges, and never giving up.”

Some 300 members of the media from 31 countries were shown how Toyota is helping a number of para athletes — including our own Paralympic swimmer Ernie Gawilan — in their quest for glory. In addition, Toyota is aiding these so-called “dual heroes” champion other causes. In Mr. Gawilan’s case, it’s about saving the environment through coastal cleanups. In Tokyo, he recalled to this writer how he learned to swim at age 11 or 12 in the waters off Samal Island.

“At Toyota, we embrace the potential of new technology to help us create products and services that enable people to overcome barriers and to reach their potential. The Olympic and Paralympic Games align with Toyota’s values and are platforms to showcase our global commitment to the concept of mobility for all,” said TMC Marketing Division General Manager Susumu Matsuda. A total of 16 athletes are taking part in Toyota’s “Mobility for All” campaign.

The company will deploy 20 e-Palettes at the 2020 Olympics to help transport athletes, along with Human Support Robot (HSR) and Delivery Support Robot (DSR) units. Wheelchair-riding attendees will be guided to accessible seating by the HSRs, which can also deliver light meals and goods to them. The DSRs “will directly deliver drinks and other goods to spectators that they have ordered from a dedicated tablet.” Some 500 seats at the Olympics and another 500 at the Paralympics reserved for spectators who needed mobility assistance will be served by these robots.

Mr. Toyoda underscored in his speech at the opening of the Toyota booth at TMS: “Our booth this time does not feature a single car to be launched next year. All that is found here are forms of mobility that link to society and communities and that provide modes of getting around and services to people.

“I believe that the more automation advances, the more the ability of people… will be put to the test. For example, people’s warmth and kindness… and also the hearts that feel such. What we want to express through our booth is the concept of people connected. (It) refers to a society in which people are linked — a society in which the warmth and kindness of people can be felt.”

Peso to climb on inflation, GDP

THE PESO may strengthen this week on the back of expectations of lower inflation and faster economic growth.

The local unit closed at P50.74 against the greenback on Thursday, stronger by 14 centavos from the P50.885-a-dollar close on Wednesday.

The peso gained 50 centavos week-on-week from its P51.24 finish on Oct. 24.

Dollars traded on Thursday grew to $1.16 billion from $1.049 billion on Wednesday.

A trader said the peso’s performance last week was driven by the rate cut made by the US Federal Reserve.

“The peso strengthened together with other Asian currencies after another rate cut by the Fed which deducted another 25 basis points to key interest rates,” the trader said in a phone call.

The US Federal Reserve on Wednesday cut interest rates for the third time this year to help sustain US growth despite a slowdown in other parts of the world, but signaled there would be no further reductions unless the economy takes a turn for the worse.

“We believe that monetary policy is in a good place,” Fed Chair Jerome Powell said in a news conference after the US central bank announced its decision to cut its key overnight lending rate by a quarter of a percentage point to a target range of between 1.50% and 1.75%.

For this week, a combination of local and US data could affect the peso’s swing.

“The markets will be anticipating the latest inflation data and the gross domestic product (GDP) growth as well as the effectivity of the one-percentage point cut in the banks’ RRR (reserve requirement ratio)…that could support sentiment on the local economy and financial markets,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Meanwhile, the trader said the US job growth slowdown could also affect peso-dollar trading.

“We have seen the US job data release and next week will have a barrage of data including the inflation and the GDP,” the trader said.

US job growth slowed less than expected in October as the drag from a strike at General Motors was offset by gains elsewhere and hiring in the prior two months was stronger than previously estimated, offering some assurance that consumers would continue to support the slowing economy.

US non-farm payrolls increased by 128,000 jobs last month, with manufacturing shedding 36,000 positions because of the strike — the most since October 2009, the government’s survey of establishments showed. Striking workers who do not receive a paycheck during the payrolls survey period are treated as unemployed. The strike by about 46,000 workers at GM plants in Michigan and Kentucky ended last Friday.

Meanwhile, the Philippine Statistics Authority will report the inflation and GDP data on Nov. 5 and Nov. 7, respectively.

Mr. Ricafort sees the peso trading at P50.50-51.00 this week, while the trader sees it playing around the P50.80-51.30 band. — L.W.T. Noble with Reuters

Suzuki showcases transformative concept cars at Tokyo Motor Show

By Ulysses Ang

SUZUKI has been making strides in creating truly valuable automobiles and motorcycles that delight customers. As the Japanese car maker celebrates its 100th anniversary, they’ve used the 46th Tokyo Motor Show 2019 to show their initiatives in the development of products and technologies for opening up a “big future” towards the next 100 years.

One such example is the Waku Spo Concept, a car that carries two distinct personalities. Powered by a plug-in hybrid electric (PHEV) powertrain, it switches from a coupe to a wagon at the whim of the driver. The secret is the concept car’s retractable rear section which folds down at the press of a button. When transformed into a wagon, the rear seats slide back and automatically recline giving a much roomier, comfortable cabin. Moreover, it has sliding rear doors that makes entry into the second row easier despite its two-door body style.

Along with the transforming body style, the Waku Spo Concept’s front fascia changes as well as the dashboard. In standard wagon mode, it has a simple virtual wood grain finish that displays only necessary information. In contrast, switching to the coupe Sport mode brings out a full-length monitor that displays a wider variety of information.

Another mobility concept is the Hanare, Suzuki’s take on future autonomous vehicles. Named after the Japanese word for detached cottage, the Hanare is basically a room on wheels. Swinging open the large side doors show off a wide variety of seating arrangements, all designed for enjoyment of the passengers. Furthermore, thanks to in-wheel motors and a completely symmetrical design, it eschews the concept of ‘front’ and ‘back.’ This helps it navigate through parking lots and other tight spaces easily.

Through this pair of concepts, Suzuki is not only showing the possibilities of future mobility, but also shows how everyone can move about more freely while still expressing his or her personality whether it’s with a car that transforms to suit one’s intended use, or one that changes from a private space to one that can accommodate family or friends.

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