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Stories in thread and cloth

AMID A climate emergency, a possible pandemic, and all the great and small battles we all fight everyday, the world continued to spin for the designers of Paris. Two designers at the shows in the first week of March showed a nostalgia for days gone by, one designer opted for the arts as a palliative, while one maison refuses to go down without a fight.

BALMAIN
(Video of the fashion show can be seen at https://www.youtube.com/watch?v=5QxkIrfhsoQ)

Olivier Rousteing’s FW 2020-2021 collection for Balmain opened with a line of navy pea coats. Another line showed something reminiscent of desert landscapes with beige and white capes, and the suggestion feels like a call to spend the season somewhere dry and hot. But then, the next few lines show a leaning towards classics of French design — think the safari suits by Yves Saint Laurent, combined with the beige and black piping, and the quilted details of Chanel. One can also see hints of Dior in the strong shoulders in suiting, or maybe in the solid, hard material (possibly plastic) draped on a model like fabric. Rich Baroque prints also dominate some other designs, perhaps reflective of some of the fashion capital’s sights. The whole collection reads like a love letter to the great names of Paris, albeit one that is less florid; colder, bolder, and more urgent (which can sometimes have an even better effect).

CELINE
(Video of the fashion show can be seen at https://www.youtube.com/watch?v=8WJ5E_rg6Gg)

Hedi Slimane’s Celine show was dedicated A Ma Mère (to my mother). The collection is just as much a love letter to the past of Paris as the Balmain show was, but this time with wider references. See, while Balmain’s show was about extolling the virtues of Paris as seen through design, Celine’s vision was a lot more mainstream. By this we mean that the collection is interpreted not through the lens of upper-class wearers, but someone more normal, a little more middle-class. The collection opened with a black shapeless dress that screamed bohemian chic in its flowy skirt, invisible bosom, and long sleeves. It’s accessorized with a necklace with a gold fringe that called the 1970s to mind, and paired with a bowler hat. It looks like what French New Wave cinema said was the type of girl every intellectual wanted to be, or have. Next came a swinging sequined rose gold dress, a black slim-cut men’s suit with a polka-dot foulard neck. We also saw a python-print shirtwaist dress, styled with a slim belt, chic but wild, as if a celebrity had stepped off a jet while off-duty. Feminine tuxedos are also key: we saw another slim-cut suit with a large floppy bow tie with a tuxedo shirt with blown-up ruffles. These pantsuits call back to the Le Smoking tuxedo for women by Yves Saint Laurent, born approximately in the period where Slimane’s mother might have worn them (Hedi Slimane was born in the late 1960s). It thus becomes an homage to bohemian Parisian chic in that period, which saw Youthquake, and the student riots of May ’68.

HERMÈS
(Video of the fashion show can be seen at https://www.youtube.com/watch?v=LSf58Yqxx0s)

Hermès opened with a collection of white and red coats appearing in a landscape reminiscent of the paintings of Piet Mondrian, had the artist made his primary-color blocks as trees and tubes. The collection of coats and layers follow the same clean lines as the paintings, and if they hadn’t been accented with leather and the bright pops of color, they would have had this too-cold, too-clinical chic. Several prints reflect other artworks of the same school of abstraction, thus awakening one’s own sensitivity to art. We do remember that the maison’s specialty is leather, so we saw full-length leather high-necked trenches, pleated leather skirts. We can only imagine the difficulty in treating a leather so it becomes almost as fluid as water, or stiff enough to hold pleats yet still move. We also like the clever little details such as what appears to be jacket lapels actually serving as closures meant to be belted shut.

DIOR
(Video of the fashion show can be seen at https://www.Dior.com/en_int/womens-fashion/ready-to-wear-shows/autumn-winter-2020-2021-ready-to-wear-show)

When Dior started in the postwar period, it dressed women very lavishly, trying to shake off the lean privations of war with rich fabrics and generous, corseted silhouettes. It was a bit of an affront to the humiliated Chanel (rumored to have collaborated with the Nazi enemy), who championed clean lines, ease of movement in dress, and her career was devoted to liberating women from the straitlaces of corsets. In the maison’s 69-year history, Maria Grazia Chiuri is the first woman to lead the important label. In her capacity, she seems to place the focus back on the women who wear the clothes. Her runway for her FW 2020-2021 collection was lit with lights spelling out slogans that may read like a woman’s innermost thoughts, when she feels that the male-dominated world turns against her: “Women’s love is unpaid labor,” “When women strike the world stops,” and “Consent.” In the same week that Ms. Chiuri presented her show, former Hollywood boss Harvey Weinstein was convicted of criminal sexual assault and rape in the third degree.

Ms. Chiuri opened her show with a black pantsuit with Dior’s signature Bar jacket. The Bar jacket, though masculine in design, flares at the hips seemingly to emphasize femininity. From the male gaze of her predecessors, it might show a hint of sex; but from Ms. Chiuri’s feminist perspective, it becomes a celebration of the female power of reproduction (or so we think). Neckties and decidedly masculine suit elements in strict black are also seen throughout the runway, as are shirtwaist dresses in checked prints that are profuse in this collection. White, loose fitting suits seemed to point back to the menocore trend of a few years back, which called to mind a nice retirement at the beach. There’s also a lot to think about in the context of dresses made with fringe, done as if in raw thread, as if they had been shredded before. As they moved down the runway, they predictably showed bits of skin from the threads hanging loosely about the model’s body, while the words “Consent,” in capital letters, floated above her. — Joseph L. Garcia

Metro Pacific studies pullout from NAIA rehab consortium

By Arjay L. Balinbin
Reporter

METRO PACIFIC Investments Corp. (MPIC) is considering pulling out of the so-called “super consortium” that is proposing to rehabilitate the Ninoy Aquino International Airport (NAIA) amid issues on the draft concession deal, its top official said.

“It’s gonna be a tough one — tough one for us to join,” MPIC Chairman Manuel V. Pangilinan told reporters last week when asked for an update on the consortium.

Asked if there is a possibility for MPIC to withdraw from the consortium, he said: “We are thinking about it.”

He said the reasons include the unresolved issue on the real property tax (RPT) payments.

“RPTs, mga ganun-ganun (things like that),” Mr. Pangilinan said, adding that MPIC will have to make a final decision on the matter “soon.”

Siyempre (Of course) it’s unfair naman to make the consortium wait for us. Hindi naman fair ‘yun kasi (It wouldn’t be fair because) they have the right [to know] whether we are in or out,” he continued.

His comments come after Ruben S. Reinoso, Jr., Department of Transportation undersecretary for planning and project development, told reporters on Feb. 24 that the government and the NAIA consortium would have to renegotiate certain parts of the draft concession agreement.

These parts include the plan to lay off airport workers, the use of a bus rapid transit (BRT) system to transport passengers within the airport complex, and the RPT.

Mr. Reinoso said the consortium had suggested that the Manila International Airport Authority (MIAA), which is the primary grantor, should take part in RPT payments.

Nuong una, ang argument nila it’s on net present value, which means that the real property tax payment is part of the inflows to the government per se, pero sabi ko hindi ganun ang agreement natin kasi you will not be keeping MIAA whole [in that case]. Binawas mo pa ‘yung income nila, magagalit ang MIAA sa atin niyan,” he said.

(At first, their argument was that it’s on net present value, which means that the real property tax payment is part of the inflows to the government per se, but I said that was not our agreement because you will not be keeping MIAA whole in that case. Then you also took out their income, MIAA will be angry with us because of that.)

“MIAA should be kept whole, kasi if that is the case, as a corporate, magsa-suffer naman ang MIAA, hindi kami papayag doon and that was the agreement… Pumayag na sila na hindi nila ibabawas sa payment sa gobyerno ‘yun,” he added.

(MIAA should be kept whole because if that is the case, as a corporate, it will suffer. We will not allow that and that was the agreement. They already consented that they will not take it out of the payment to the government.)

Mr. Reinoso said further that the consortium is now defining the boundaries of the property and that they may also start negotiating on the RPT payments with the local government unit (LGU).

Kasi LGU ang nangongolekta niyan, hindi naman kami (It’s the LGU that collects that, not us),” he noted.

Mr. Reinoso also said the government was hoping that concerns regarding the concession agreement would be settled by this month.

The National Economic and Development Authority (NEDA) board approved in November last year the unsolicited P102-billion proposal from a consortium composed of the country’s top conglomerates to rehabilitate the country’s main gateway.

The so-called NAIA super consortium is composed of Aboitiz InfraCapital, Inc; AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; JG Summit Holdings, Inc.; and Mr. Pangilinan’s MPIC.

“After we have concluded the negotiation, we will go back to the NEDA Board to report on the results of the negotiation and get confirmation,” Mr. Reinoso said.

After which, MIAA will submit the draft agreement to the Office of the Solicitor General and the Department of Finance for comment, he added.

Since it is an unsolicited proposal, the NAIA rehabilitation project will still be subjected to a Swiss challenge.

The Swiss challenge is the competitive bidding process where third-party companies are invited to submit counterproposals to a project, which the original proponent has the right to match.

The rehabilitation of the NAIA, whose main terminal opened in 1981, is expected to increase its capacity to 47 million passengers a year in the first two years and further expand this to 65 million passengers after four years.

The NAIA, which has four terminals, has been operating beyond its 30.5 million passenger capacity. It recorded 45.3 million passengers in 2018.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.

Agriculture dep’t asked to tag upland areas in Davao City for coffee production

THERE ARE about 17,000 hectares in upland areas in Davao City that are ideal for coffee farming, but development needs a push from government, according to the Davao City Coffee Council (DC3).

Ian B. Asilo, DC3 chairman, said the Department of Agriculture’s (DA) Davao regional office, together with the Department of Environment and Natural Resources and the National Commission on Indigenous People, has to identify the areas for coffee production and set up an assistance program to encourage farmers.

“There are 17,000 hectares in the part of Toril going to Marilog where you can plant coffee… but the coffee farms were converted into cacao and banana plantations,” Mr. Asilo said during last week’s Habi at Kape forum.

He noted that these areas used to have more coffee growers, particularly indigenous people (IP) communities, who switched crops in the 1990s following a drop in market prices.

Once the DA has tagged the area, he said, private and social enterprises can also step in to help the IPs and other small-scale growers.

“The private sector, like our organization, can come in because the IP cannot produce in big volume,” Mr. Asilo said.

He said that no coffee farmers in the city can produce 180 kilos of coffee beans, one of the requirements for joining the Philippine Coffee Quality Competition (PCQC).

“All that is needed is some push from the DA,” he said.

Davao City is hosting this year’s Philippine Coffee Expo and the PCQC, set on April 2–3.

The expo is jointly organized by the DA, Department of Trade and Industry, Barista Coffee Academy of Asia, and the Agricultural Cooperative Development International and Volunteers in Overseas Cooperative Assistance (ACDI/VOCA). — Maya M. Padillo

BSP to release rules for Islamic bank products

THE BANGKO SENTRAL ng Pilipinas (BSP) is set to release implementing rules and regulations (IRR) on Islamic financing products in a bid to bolster financial inclusion for people that have limited access to financial products partly due to religious suitability, according to an official.

In an interview with BusinessWorld, BSP Managing Director of the Center for Learning and Inclusion Pia Bernadette Roman-Tayag said while there are already some Shariah-compliant financial products in the market, an IRR could urge more banks to make these kinds of offerings.

“We are going to be issuing our implementing rules for the Islamic finance. So du’n siguro magkakaroon ng details (Maybe the details will be clearer then),” Ms. Roman-Tayag said at the sidelines of an event held by Paymaya Philippines, Inc. and Oxfam Pilipinas held in Mandaluyong City on Thursday.

In 2019, BSP issued Circulars 1069 and 1070, which contain guidelines regarding the establishment of Islamic banks and banking units as well as the Shariah Governance Framework.

“More IRRs will be issued,” Ms. Roman-Tayag said.

She noted that the Muslim Mindanao region is still among the most financially underserved in the country due to lack of financial institutions in the area as well as product suitability.

“First of all, ’yung presence din kasi of banks there, du’n din kasi pinakakaunti (the presence of banks there is the lowest). That’s really one barrier, the actual presence of financial institutions there,” she said.

“So hopefully, with the digital…cash agents, that can be addressed. The second is suitability of products,” she added.

Aside from this, she noted that residents in the region are also restricted to some products amid the lack of Shariah-compliant offerings.

“From the financial inclusion standpoint, we don’t want to exclude people because of religious consideration,” Ms. Roman-Tayag said. “It’s also a form of exclusion, if you are not able to deliver products that they need…for religious considerations.”

A key concept in Islamic banking is that operations do not involve “riba” or interest.

“So hopefully with this new law, and with more providers, we can see more inclusion in the area,” Ms. Roman-Tayag said.

Republic Act. No. 11439 or the act providing for the regulation and organization of Islamic banks was enacted last August.

Among its key provision is to allow traditional banks to operate Islamic banking operations subject to approval from the BSP Monetary Board.

Tengfu Li, Financial Institutions Group Analyst at Moody’s Investors Service, has previously told BusinessWorld that the establishment of an Islamic banking framework will help boost growth in the newly established Bangsamoro Autonomous Region in Muslim Mindanao. — Luz Wendy T. Noble

Philippine history told through fashion

WHILE one may think that clothes don’t matter, history would show otherwise. An era’s fashions show the dictates of society at a point in time: the materials available to a people, the prevalent moral and social codes, and a measurement of the people’s prosperity. A fashion show at the Shangri-La Plaza aimed to tell the story of the Philippines through its clothing: from the pre-colonial period to the near-past of the 1960s.

The show, called Obra Maestra 2020: Homage to Heritage was held at the Shangri-la Plaza’s Grand Atrium late last month. The show also served to announce the book Obra Maestra: A Portrait of Excellence in Philippine Fashion and Culture, set to be released in May. The book and the show are both projects of Zardo Austria. Proceeds of the Obra Maestra efforts will benefit the construction of the Benedictine Sisters Reparatrices of the Sacred Heart’s new monastery and chapel in Mexico, Pampanga. These also raise funds for the Duyog Marawi Project, spearheaded by Bishop Edwin dela Peña, and the victims of the recent Taal Volcano eruption.

Designers who participated in the show include Oskar Peralta, Renee Salud, Ditta Sandico, Richard Papa, Roland Lirio, Steve De Leon, Delby Bragais, Peri Diaz, Albert Figueras, Peter Lim, Ricci Lizaso, Glenn Lopez, Edgar Madamba, Jontie Martinez, Jerome Navarro, Joyce Penas-Pilarsky, Lito Perez, Edgar San Diego, Gerry Sunga, Philip Torres, Edwin Uy, and the late Eddie Baddeo.

The clothes onstage were supported by performances from kundiman musicians, tenor Sherwin Sozon and soprano Tonton Pascual of the Lyric Opera of the Philippines, Mike Austria, Al Gatmaitan, Homer Mendoza, Vince Conrad, and Kathy Hipolito Mas.

The part of the show highlighting the pre-colonial period showed indigenous textiles from all over the country, while the segment covering the Spanish colonial period showed marvelously worked traje de mestizas. Samples of opera and kundiman played in the background as the models swayed down the runway.

The pace picked up with the presentation covering the American period. This is when the quasi-Victorian traje de mestiza evolved into the sleeker, one-piece terno we know today. Jazz and Big Band music played in the background, while outfits by Lito Perez came out. This included a terno with spotted embroidery, a sequined overskirt over a heavily embroidered underskirt in blue and silver, and a gold lamé fichu. For the men, reflecting the Americanization for the upper classes, light summer seersucker suits were brought out on the runway. Of note was a white lace number with blackworked sleeves paired with a black panelled skirt, and the cherry on top, a black lace pañuelo (fichu).

Jontie Martinez, meanwhile, showed off a magnificent terno in black lace and silver sequins. This was accompanied by a peacock-feather collar with a matching fan. The dress, and the one that followed it, imagined the dresses worn by Manila’s Carnival queens, a predecessor of our present obsession with pageants.

The next dress was Ricci Lizaso’s, a one-shouldered evening dress with crystals at the skirt and bodice, topped by a magnificent cockle headdresss. Continuing the beauty pageant theme, Peter Lim drew out a sequinned dress made of net, with a sash forming a bit of a bustle behind. The next dress, by Joyce Pilarsky, was pink, with a ruched ball gown skirt and a massive lace collar appliquèd in gold.

Hollywood’s influence in Philippine fashion was also touched on: Edgar San Diego brought out a villainously chic dress with a model with marcelled hair, wearing a black traje de mestiza with floral appliqués in pink over a very pale pink skirt.

The next segment began by introducing the privations of war, moving swiftly to the Liberation period, again bringing Big Band sound and Swing. Lito Perez brought out a pair of soldiers wearing khaki uniforms, while 1950s fashion was on the runway with models in ruffled skirts and shirtwaists for daywear. Formalwear didn’t take a backseat with a lovely rose-colored traje de mestiza with ruching and panelling at the skirt.

As the country settled more comfortably into the highs of independent government, high society began to throw lavish parties, such as the Kahirup and the rival Mancomunidad balls, which were thrown by rich Southerners and rich citizens of Central Luzon, respectively. The women who attended these lavish occasions were dressed mainly by five people: Ramon Valera, Pitoy Moreno, Aureo Alonzo, Ben Farrales, and R.T. Paras, whose works were exhibited at the mall until the end of last month.

The dresses that came next were interpretations of the creativity of these designers. For example, Steve de Leon’s knotting and draping combine in an angel-sleeved confection of yellow and white. Philip Torres, meanwhile, showed patchwork on a flared skirt made of net, with crystals on the butterfly-sleeved bolero. Delby Bragais showed a simple terno with crystal tendrils extending from the sleeve and waist, and a pattern drawn of crystal formed diamond shapes on the fabric. Edgar Madamba showed a beautiful panelled skirt in the shape of a tulip, below a delicate terno bodice. This was followed by a magenta evening gown.

The last part of the show showed Filipiniana of various lines, of all regions of origin; all made to showcase a sense of Filipino pride. They were all made with colors of the Philippine flag (yellow, red, blue, and white). A series of red dresses by Delby Bragais, for example, featured a tiered skirt and an interesting neckline, but for the series representing the flag’s red colors, we’ll have to give it to a stunning opera coat, spanning several feet, occupying almost the entire width of the runway, in a translucent material (possibly abaca), with a high collar and bell sleeves by Ditta Sandico. Lito Perez brought out a white unstructured terno like an 18th century chemise dress. This was literally given structure with armor made of yellow metal.

Mr. Austria pointed out that outfits that may not have been historically accurate were part of the whole process. “I’m not asking them to be authentic. I told them to stylize,” he said.

It’s interesting to see such an ambitious fashion show in — of all places — a mall. This then democratizes the process, a point Mr. Austria agrees with. “It’s trying to reach out to this generation. These millennials, they’re hungry; they’re thirsty for something cultural,” he said in a mixture of English and Tagalog.

While it’s easy to fall in love with the terno’s shape and style, it isn’t always accessible to a lot of people for its sometimes prohibitive price: the piña (pineapple fiber fabric) used to make some ternos, for example, is hard to source and can be quite expensive. Still, some brands have been daring to turn the terno from formalwear to daywear, thus injecting a sense of Filipino pride (and style) to the everyday.

“That is what we want to encourage. We have to be proud of our heritage,” said Mr. Austria. “If this generation can relate to this type of interpretation, well and good.”

We can see this in Republic Act No. 9242 (Philippine Tropical Fabrics Law), which prescribes the use of native fabrics for official government uniforms. This alone may have spearheaded the ubiquity of the formal barong through its daywear polo-barong cousin, which Mr. Austria points at as a good example of the adaptation of national dress. In a mixture of English and Tagalog, he said, “I’m very, very sure, the terno will adapt as well.” — Joseph L. Garcia

Off-cockpit betting firm refutes P1.3-B unpaid taxes

By Beatrice M. Laforga
Reporter

MANILA Cockers Club, Inc. (MCCI) has refuted reports that it has P1.3 billion in unpaid taxes since the case remains under investigation, although it has agreed to settle the penalties and comply with registration requirements for its ticket-dispensing machines, which were earlier sealed for non-registration.

In a letter to the Bureau of Internal Revenue (BIR), which was obtained by BusinessWorld, MCCI argued that its alleged tax deficiencies “are still in the informal conference stage of the investigation” and that it had not yet received preliminary and final assessment notices from the bureau.

“It is only at that point in time that it can be said that MCCI has been assessed deficiency taxes. Thus, MCCI maintains that the news reports are inaccurate, considering that it has no deficiency taxes,” the document read.

It said it had paid a total of P401.596 million in taxes last year, P145.195 million in 2018, P81.068 million in 2017, P26.065 million in 2016 and P89,908 in 2015.

The BIR reported last week that the company had P1.3 billion in unpaid taxes and that it had no registered automated ticket dispensing machines in any of its 132 locations nationwide.

The bureau sealed 51 machines in some of MCCI’s branches in Quezon City on Thursday, arguing that all businesses need to register their machines as these are used to properly monitor sales and transactions and not doing so will subject companies to penalties and liabilities.

“In keeping with our earnest intention to settle the matter of the non-registration of the ticket dispensing machines, and as a show of good faith, MCCI hereby formally offers to pay the assessment for non-registration of betting machines and undertakes to register said machines forthwith,” the document read.

However, the company argued that its 147 machines used in off-cockpit betting stations are simply betting machines recording “bets and issue tickets as evidence of bets,” and do not issue receipts or invoices “as the amounts paid by bettors are not consideration for any goods sold or compensation for any services rendered.”

“Thus, these machines need not be registered with the BIR,” it said.

Despite this, MCCI said it had agreed to comply with registration requirements and pay necessary fees during its meeting with the BIR-National Investigation Division on March 3.

“Thus, it came as a great surprise when the BIR issued the MO (mission order), and through its agents, proceeded to constructively seize, by sealing, the ticket dispensing machines in the various betting stations,” it said.

According to its website, the company said it is “the only cockfighting event entity that pays taxes due to its legal operations.”

MCCI is a wholly owned subsidiary of the listed company Manila Jockey Club Inc. (MJCI).

Bureau of Fisheries prepares new management strategy as sardine season starts this month

THE BUREAU of Fisheries and Aquatic Resources’ (BFAR) Zamboanga Peninsula regional office is preparing to implement the government’s new fisheries management strategy with the sardine fishing season opening March 1.

BFAR Regional Director Isidro M. Velayo, Jr., speaking during the open season ceremony on March 2 at the Sindangan Port in Zamboanga del Norte, announced that the bureau will be starting this month with an information caravan on the ecosystem approach to fisheries management (EAFM).

Under EAFM, 12 Fisheries Management Areas (FMAs) were established through BFAR Administrative Order 263 issued in January 2019 for a more coordinated policy development and implementation.

Zamboanga Peninsula is under FMA 4 together with the regions of Western Visayas, Central Visayas, and the Bangsamoro Autonomous Region in Muslim Mindanao.

The clustered provinces are: Antique, Guimaras, Iloilo, Negros Occidental, Negros Oriental, Basilan, Sulu, Tawi-Tawi, Zamboanga del Norte, Zamboanga del Sur, and Zamboanga Sibugay.

Mr. Velayo, in a statement, said “despite the fact that handling the area in the region is very challenging,” he is “thankful for this strategy as this will help revolutionize the protection, conservation and ensure the sustainability of the fishery resources for the benefit of our future generation.”

After the information campaign, BFAR will organize the selection of representatives from key stakeholders for the FMA’s Management Board.

The FMA will create and implement an EAFM Plan, which includes goals, roles, and monitoring system.

“The EAFM Plan is a ‘living document’ that is regularly refined and updated to address priority issues and problems. It also considers the governance capacity of implementing partners,” according to a BFAR briefing document.

BFAR will serve as convenor, inter-agency facilitator, and lead agency in implementing action plans for areas outside municipal waters.

Local government units will be responsible for their respective jurisdictions.

Each FMA was set up based on fish stock boundary, range, and distribution, and structure of fisheries and administrative divisions.

The Zamboanga Peninsula Region accounts for almost 50% of the country’s sardine production, based on BFAR’s National Sardine Management Framework Plan 2019–2024. It had a catch of 152,283 metric tons in 2017. — Marifi S. Jara

Peso seen to weaken further as coronavirus continues to spread

THE PESO may continue to decline this week due to the prolonged coronavirus disease 2019 (COVID-19) outbreak, although it could get some relief from the release of key local and US data.

The local unit closed at P50.64 versus the dollar on Friday, depreciating by 5.50 centavos from its P50.585 finish on Thursday, according to data from the website of the Bankers’ Association of the Philippines.

Week on week, however, the peso appreciated by 33 centavos from its P50.97-to-a-dollar close on Feb. 28.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the local currency’s weakness to continued market fears due to the prolonged spread of the virus.

“The peso exchange rate was slightly weaker, could be brought about by latest volatility in the financial market that effectively increased shift to safe havens,” Mr. Ricafort said in a text message on Friday.

Meanwhile, a trader said the peso’s weakness on Friday was a “delayed reaction” after some weak data released on Thursday.

The Philippine Statistics Authority (PSA) reported on Thursday that headline inflation in February slowed to 2.6% from the 2.9% pace in January, on the back of easing food, transport, and utility prices. This headline inflation print is closer to the lower end of the 2.4-3.2% inflation forecast range penciled by the central bank last week.

This also compares to the three percent inflation estimate from a BusinessWorld poll of 17 economists.

The PSA on Thursday also said preliminary data from the Labor Force Survey (LFS) showed the Philippine unemployment rate as of January was unchanged at 5.3% from the same period of 2019.

A closer look at the data, however, showed the number of jobless in the country went up by 106,651 to 2.39 million in January from 2.28 million in the same LFS round last year.

This week, headlines regarding the spread of COVID-19 as well as some key data will affect currency trading, according to Mr. Ricafort and the trader.

“The major factors include developments related to the coronavirus, both locally and globally, as well as the upcoming announcements on the latest Philippine trade data,” Mr. Ricafort said.

The PSA is set to release the January international merchandise trade data not later than March 12.

In 2019, the trade deficit stood at $37.05 billion, smaller than the $43.53-billion gap in January-December 2018. In December alone, the trade gap was at $2.48 million, thinning from the $4.17-billion deficit in the same month of the prior year.

Aside from the progress of the spread of the virus, the trader also said the market will factor in key US data released late last week.

“’Yung isang big thing na nakikita ko (One big thing I see) besides the virus is the nonfarm payrolls US data,” the trader said.

Reuters reported that US non-farm payrolls grew by 273,000 jobs in February to match January’s tally, which was the largest since May 2018.

On March 7, the Department of Health (DoH) declared Code Red sub-level 1 and has alerted medical professionals to be ready to report for duty after the country confirmed the fifth case of COVID-19 in the country, which is a local transmission as the 62-year-old Filipino did not have any recent travel history. His 59-year-old wife has also contracted the virus, bringing the total infections in the country to six.

“With Code Red, the DoH has recommended to the Office of the President for the declaration of a State of Public Health Emergency which will facilitate mobilization of resources, ease processes, including procurement of critical logistics and supplies, and intensifying reporting,” the DoH said in a statement.

The virus has already infected more than 100,000 around the world and killed more than 3,000.

This week, the trader sees the peso moving around the P50.50-P51 levels while Mr. Ricafort gave a forecast range of P50.50-P50.90. — L.W.T. Noble with Reuters

Valentino goes back to black at Paris Week

PARIS — From leather bodices to sheer frilly dresses, Italian label Valentino showcased a series of all-black looks in Paris on Sunday as fashion houses pressed on with their shows in spite of the coronavirus outbreak that has kept some attendees away.

At Valentino, models strutted the runway in a series of black outfits, some decked out in sequins, others in more delicate lace designs.

The somber looks were offset by splashes of fiery red here and there — from a ruffled clutch bag to long gloves — while designer Pierpaolo Piccioli ended the show with airier tones, including some sparkly mesh gowns.

Some workers at the scene wore black face masks as they put the final touches to the seating and set before guests arrived.

The fast-spreading coronavirus outbreak, which originated in China, has pushed organizers of some major global events to cancel as a precaution, and France on Saturday put a temporary ban on gatherings of more than 5,000 people.

Fashion shows tend to be smaller, with several hundred people attending at most.

Many Chinese journalists and fashion bloggers were absent in Paris this season due to travel restrictions, however, French label Agnes b. on Friday became the first non-Chinese fashion house to cancel a presentation due to the outbreak. — Reuters

Voyager having tough time getting investors

PLDT, Inc. is having a hard time getting investors for its digital arm Voyager Innovations, Inc., its top official said.

“I think we are finding it harder to get investors… Generally speaking, I think the environment has changed. The tough questions are now being asked like when will you break even in terms of your EBITDA (earnings before interest, taxes, depreciation and amortization) and in terms of your profitability? And how sustainable is it? So these are tough issues,” PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan told reporters last week.

He added: “I think the universe has become tougher in terms of the requirements for the turnaround.”

Mr. Pangilinan also said his group was in the negotiation process with potential investors.

“The demands for cash are still there as per schedule, so we are delayed in terms of getting the final list of investors to agree on the valuations and the amounts that they would invest. So, we decided that before they (Voyager) run out of cash, which is probably by the middle of the year or by June, before they hit the wall, they (current shareholders) should provide…[the funding],” he added.

In 2018, PLDT sold more than 50% of its stake in Voyager for $215 million (about P10.91 billion) to China’s Tencent Holdings Ltd.; US-based Kohlberg Kravis Roberts & Co. (KKR); International Finance Corp. (IFC) and IFC Emerging Asia Fund. PLDT remains the single largest shareholder in Voyager.

Mr. Pangilinan noted that there had been an agreement among the four shareholders of Voyager to provide the initial funding for its operations this year.

PLDT had invested some P9-10 billion in Voyager from 2013 to 2018 before it welcomed the foreign investors into the firm.

“Then they will let the final investors decide in the next two or three months on what sort of investment they would like to make,” Mr. Pangilinan added.

In 2018, PLDT incurred a loss of P3 billion in Voyager, a 150% increase from P1.2 billion in 2017.

Last week, PLDT said Voyager’s losses in 2019 were lower by P1.2 billion.

Voyager’s portfolio includes PLDT’s mobile remittance brand Smart Padala, digital payments firm Paymaya Philippines, Inc., and financial technology firm FINTQnologies Corp. whose products include digital banking, digital aid and finance, and digital lending platforms.

Mr. Pangilinan expects Voyager to be profitable by 2023.

“I think the enterprise part of Voyager will come in positive gross profit first, followed by the consumer [segment]; then come 2023, it will break even totally as a company,” he said.

In December, Voyager President Shailesh Baidwan said the company was close to hitting 20 million users on its platforms as it aims to have P1 trillion annual transactions in PayMaya by 2023.

The company does not disclose actual user figures, but it previously claimed PayMaya had the largest active user base in the Philippines.

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

Palay farmgate price little changed in last week of February; corn falls

THE AVERAGE farmgate price of palay fell 0.1% week-on-week to P16.04 per kilogram (kg) in the last week of February, with the price also declining 18% year-on-year, the Philippine Statistics Authority (PSA) said.

In its weekly update on palay, rice, and corn prices, the PSA said the average wholesale price of well-milled rice (WMR) rose 0.4% week-on-week to P37.19. The retail price rose 0.2% to P41.24.

The average wholesale price of regular-milled rice (RMR) fell 0.2% week-on-week to P32.77, while the retail price fell 0.4% to P36.16.

The farmgate price of yellow corn grain fell 0.6% week-on-week to P12.34, and was down 10.9% year-on-year.

The wholesale and average retail prices of yellow corn grain fell 2.1% and 0.3% to P21.09 and P24.73 respectively.

The average wholesale price of white corn grain rose 4.3% to P16.10.

The average farmgate and retail prices of white corn grain fell 0.4% and 0.2% to P13.31 and P26.66 respectively. — Revin Mikhael D. Ochave

Stuck-at-home rich boost trading at Asia’s private banks

ASIA’S SUPER RICH suddenly have lots of time on their hands.

The coronavirus has forced many of them to work from home, cancel travel and avoid the golf course. That’s left them more time to trade stocks amid the turmoil, boosting revenue for Citigroup, Inc. and other banks in the region.

“Clients are getting restless,” said Jyrki Rauhio, South Asia head of private banking for Citigroup. “They’re traveling less and have more time to look at the markets and review their portfolios.”

New York-based Citigroup joins firms including UBS Group AG and JPMorgan Chase & Co. that have seen a jump in trading this year as the virus roils markets. The trading surge has helped dull the pain of a health crisis that has otherwise frozen parts of their Asian banking businesses, from mergers to initial public offerings, and grounded investment bankers across globe.

JPMorgan’s brokerage activity at its Asia private bank increased more than 30% in February from a year earlier as wealthy customers traded more, said Kam Shing Kwang, regional chief executive officer of the unit.

“Client activity has been good so far,” Kwang said in an interview. “The trend depends on how long the virus outbreak is going to last.”

The coronavirus epidemic has led to wild swings in equities around the world, boosting activity at stock exchanges and bringing in more revenue for bank trading desks. Some 49.1 billion MSCI Asia Pacific Index shares changed hands on Feb. 26, the highest level in history, according to data compiled by Bloomberg.

In Hong Kong, trading exceeded HK$100 billion ($12.9 billion) on 24 of the 28 days after the Chinese New Year holiday, according to data from the Hong Kong exchange. Trading on Feb. 28 alone was the highest in a year. Currency and rates trading have also increased during the virus scare.

“The combination of less travel and increased market volatility means that clients are extremely active,” said Michael Blake, Asia CEO of Swiss private bank Union Bancaire Privée. “We have seen consistently high transaction volumes since the start of the year.”

With the fastest expansion of millionaires in the world, Asia is the region where wealth managers from UBS, Credit Suisse Group AG and others are seeking to grow. They’re racing against time to change how they interact with wealthy customers amid the outbreak that has claimed more than 3,300 lives.

While the virus has provided a short-term boost to trading, the travel restrictions have made it harder to win new private bank clients, especially in China. Some banks are signing up new customers digitally, though most new accounts have to be opened in person.

The risk for these banks is that a prolonged crisis will curb that client growth, just as they are trying to expand in China’s massive wealth market. The world’s second-largest economy is expected to see the biggest annual growth among the world’s private banking markets through 2023, Boston Consulting Group, Inc. said in a report last year.

One Hong Kong-based private banker, focused on the offshore Chinese business, said he’s mostly talking to prospective customers in his city because his firm has curbed travel and there are limited ways to reach mainland Chinese investors.

Another banker, whose focus is on Hong Kong clients, said it’s difficult to get new business from clients because they are unwilling to meet even if they’re in town. While his business in the first quarter is holding up, the outlook is dim if the outbreak persists, he said. Both bankers asked not to be identified speaking on client matters.

The crisis has opened up opportunities with existing clients as investor caution grows, bankers say. Blake at UBP said structured product volume has doubled from the same period a year ago as clients reduce risk and look for some downside protection. Citigroup has noticed a similar trend, with some clients holding more than 20% in cash, though some of that’s starting to be deployed after the global stock pull back.

JPMorgan and UBS are among banks that have allowed relationship managers to use WeChat, a popular messaging app in China, to communicate with clients on the mainland and maintain engagement. The Swiss firm, Asia’s biggest wealth manager, said it’s been investing in technology and providing digital communication resources for its staff and clients.

“Since our clients are not traveling, they are actually spending more time discussing their investment portfolios with us over phone or video conference,” said Amy Lo, co-head of wealth management for Asia Pacific at UBS. — Bloomberg