Bugkalot Coffee on the road to recovery from typhoon

February 17, 2025 | 12:03 am

By Kyle Aristophere T. Atienza, Reporter

A COFFEE enterprise hit by a major typhoon last year is banking on a recovery on the strength of its business model — which involves control over the entire supply chain and a revenue-sharing model with its growers in the Sierra Madre.

Bugkalot Coffee Co., a social enterprise, processes and markets coffee beans apart from controlling thee production side, ensuring uniform quality, according to Chief Executive Officer (CEO) Joseph Tanchi.

“One of the things that sets us apart is that we are a producer, not just a trader or processor,” he said in an e-mail.

“Since we produce our own coffee and process it ourselves, we have a high level of operational control and standardization,” he added.

The business has as many as four layers of quality control throughout the post-harvest processing, and has centralized storage and sorting, “which all contribute to a higher quality of coffee.”

Bugkalot Coffee partners with indigenous communities in the Sierra Madre mountains.

“From a community development perspective, you work with the local community to see what resources they have, and you start from there,” Mr. Tanchi said.

“Given that the Bugkalot community lies deep within the Sierra Madre mountains, and also that there are some natural geographic and logistical constraints, coffee makes sense,” he added.

“We are fully invested in the community because we have other, non-monetary goals,” he said, citing a revenue-sharing model that gives growers “a bigger piece of the pie (and ensures that they) are not just a cog in the supply chain,” he added.

Mr. Tanchi said growing conditions are favorable for the business — altitude is good for Arabica coffee, the company’s main product, and water is sufficient year-round.

“However, the natural soil composition is not the most fertile, requiring some intervention to improve it,” he said.

The business was hit hard by Typhoon Man-yi (Pepito), which caused agriculture losses worth over P260 million and inflicted damage to infrastructure.

“We continuously still struggle with raising funds for operations and for improvements or enhancements. One of the drawbacks of our centralized operation is that all the responsibility for operational expenses falls on us,” Mr. Tanchi said.

Asked about the state of the recovery process, he said “We just deal with it and keep moving forward as best as we can.”

Mr. Tanchi said the company has been planting a newer variety of Arabica, which he said is “higher-yielding” and would “help us increase production over the next few years.”

The company has been implementing “more and more” organic farming principles every year, with the plantation itself contributing “to greening and tree-planting and also prevents further slash-and-burn farming anywhere there are coffee trees.”

“As we bring in new organic farming technology, the farmers also see that and can adopt that as well,” Mr. Tanchi said.

He said the business has been using organic fertilizer for several years now and just recently visited a fully organic farming site “to learn even more.”

While the company is not yet fully organic, “we definitely aim to be one as much as we can.”

“We will continue what we’ve been doing, adding infrastructure as and when able, continue our expansion, maintain our quality and keep working towards more production at same or better quality,” Mr. Tanchi said.

“In parallel, we have been working on our cafe, and that should provide us higher margins and an additional distribution venue for Bugkalot Coffee.”

SM Foundation, GPCCI partner for workforce dev’t

February 17, 2025 | 12:03 am

SMFI — (L-R) GERMAN-PHILIPPINE Chamber of Commerce and Industry (GPCCI) Dual Training & Education and Special Services Director Kristina Silan, GPCCI board member Tristan Loveres, GPCCI President Maan Mariano, GPCCI Executive Director Christopher Zimmer, SM Foundation Executive Director Debbie Sy, SM Foundation Vice-Chairperson and Trustee Tessie Coson, and SM Foundation Executive Director for Education Programs Carmen Linda Atayde.

SM FOUNDATION, Inc. said it hopes to enhance job creation and workforce upskilling through a partnership with the German-Philippine Chamber of Commerce and Industry, Inc. (GPCCI).

The collaboration will include nationwide employment initiatives such as specialized job fairs in SM malls and short-course training programs tailored for GPCCI member organizations, SM Foundation said in a statement over the weekend.

Experts from National University and Asia-Pacific College will conduct short courses and skills training on artificial intelligence, cybersecurity, and related fields.

The two organizations recently signed a memorandum of understanding (MoU) to formalize the partnership.

“We are preparing individuals not just to find jobs but to build careers in high-demand industries,” SM Foundation Executive Director for Education Programs Carmen Linda Atayde said.

“This initiative connects skills training with actual employment opportunities, ensuring that education truly transforms lives through short-course training, job fairs, and strong industry linkages,” she added.

GPCCI President Marie Antoniette E. Mariano said the partnership aims to establish a job-ready workforce, upscale talent, and connect businesses.

“This MoU is more than just a paper that’s going to be inked. It is a collaboration and a commitment to shaping the future of employment in the Philippines,” she said.

A recent GPCCI survey found that 58% of German companies reported a positive business environment in the Philippines, while 60% expected growth in the next 12 months.

SM Foundation previously launched the Job Opportunities Building Skills initiative to address unemployment and underemployment by bridging job distribution gaps, improving employability through upskilling, and facilitating job matching.

Last year, SM Supermalls hosted 183 job fairs across its malls nationwide, connecting approximately 107,000 job seekers with nearly 6,000 employers, resulting in around 14,500 on-the-spot hires. — Revin Mikhael D. Ochave

PhilHealth targets P204B in collections

February 17, 2025 | 12:03 am

PHILIPPINE HEALTH Insurance Corp. (PhilHealth) is aiming to collect P204 billion from members this year as it plans to continue expanding benefits despite having zero government subsidy.

“For this year, we are targeting to have a collection of around P204 billion, especially from the direct contributors. Our proposed benefit expense for the year is around P270 billion,” PhilHealth Spokesperson and Senior Vice-President for Health Finance Policy Sector Israel Francis A. Pargas told BusinessWorld earlier this month.

PhilHealth’s net income declined by 41.66% to P46.43 billion in the first nine months of 2024, its financial statement showed.

At end-September 2024, premium contributions inched up by 2.02% year on year to P167.39 billion, while benefit expenses rose by 43.26% to P134.7 billion.

Operating expenses went up by 41.15% year on year to P140.66 billion.

PhilHealth also wants to maintain its investment income, Mr. Pargas said, which as of September last year was at around P19.69 billion, up by 29.95% from the same period in 2023.

The state health insurer’s approved corporate operating budget for 2025 is around P280 billion.

Mr. Pargas said PhilHealth aims to continue expanding members’ benefits this year despite having zero subsidy from the government.

“We are doing our best to improve on our services, on our benefits, and we are, of course, hoping that by next year’s round of budget preparation, especially for 2026, we will be given a subsidy already by the Congress,” he said.

PhilHealth recently released a new policy to cover post-kidney transplant medicines, including anti-rejection medicines, immunosuppressants, antibiotics, and diagnostics, to complement its kidney transplant package.

It will review its coverage of catastrophic cases, such as expanding its Z benefit packages for cancers like lung, liver, prostate, ovarian, and cervical, Mr. Pargas said.

PhilHealth will also continue the rationalization of case rates, the official added.

“We are doing it in two directions. One is improving our current benefits. The second one is we are also introducing and coming out with benefits that would actually support the Universal Health Care (UHC) Act. So, until such a time that we are completely implementing the reforms and the benefits espoused in the Universal Health Care Law, then that is the time that we will slow down. But we will not stop because we will continue reviewing and expanding our benefits,” Mr. Pargas said.

He added that PhilHealth’s current actuarial life is until 2028.

“We don’t need to have a long actuarial life because we’re not the same as any pension insurances, but rather our system is like pay as you go… We of course want to increase it, but it will have an impact on our benefit expansion and all our benefit plans,” Mr. Pargas said.

Under the UHC Act, PhilHealth is required to maintain a reserve fund equivalent to two years of its projected expenditures.

President Ferdinand R. Marcos, Jr. this month appointed Edwin M. Mercado as PhilHealth’s new president and chief executive officer. — Aaron Michael C. Sy

Electrifying addition

February 17, 2025 | 12:03 am

With three variants priced from P2.188 million, the new Kia Sorento Turbo Hybrid is a spacious and efficient three-row SUV that’s exempt from number coding. — PHOTO BY KAP MACEDA AGUILA

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With the Sorento Turbo Hybrid, Kia PHL electrifies a midsize SUV price point

By Dylan Afuang

KIA PHILIPPINES recently introduced to the market the Sorento Turbo Hybrid that carries styling and technology upgrades and, more importantly, a gasoline-electric hybrid (HEV) powertrain the car maker gave to its mid-size SUV.

“From efficient ICE models, to innovative hybrids, and electrified vehicles, the Kia movement highlights the brand’s commitment to providing a Kia vehicle suitable for each Filipino,” Jaime Alfonso Zobel de Ayala, CEO of Kia Philippines’ parent company ACMobility, announced during the Sorento Hybrid’s public launch in Makati City.

Last year, the local Kia arm brought in the Sonet subcompact crossover, the EV9 battery-electric SUV, and the Carnival Hybrid multi-purpose vehicle.

At launch, the new Sorento is available in three variants: 1.6 EX Turbo Hybrid 4×2 (P2.188 million), 1.6 EX+ Turbo Hybrid 4×2 (P2.588 million), and 1.6 SX Turbo Hybrid AWD (P2.888 million). Ditching the diesel engine that this Sorento iteration had from its first local launch in 2021, the updated model now features hybrid power as standard across the range.

This HEV uses a 1.6-liter turbocharged gasoline engine, which accepts 91-octane gasoline, assisted by a single electric motor that draws power from a 1.49-kWh battery. Total system output is rated at 232hp and 367Nm of torque, delivered to the front and to all wheels in the 4×2 and AWD models, respectively, via a six-speed automatic transmission.

Kia Philippines claimed that the SUV musters an urban fuel consumption rate of 23kpl, and that it’s exempted from the Unified Vehicular Volume Reduction Program or number-coding scheme, a privilege granted to EVs and HEVs.

The Sorento Hybrid’s Smart Regeneration feature facilitates effective battery charge by automatically modifying the intensity of regenerative braking, depending on variables like running speed, road slope, and distance from the car ahead.

Exclusive to the Sorento SX AWD are Sand, Mud, and Snow terrain modes, which calibrate the traction across all four wheels when the crossover is taken off road.

All Sorento variants offer three-row seating for seven, but only the EX+ 4×2 and SX AWD models come with perforated white leather upholstery and front seats with cooling and power adjustment. Middle-row passengers here can also move the front passenger seat forward via buttons on the seat. Devices can be charged with USB-C ports attached on the front seats.

A panoramic sunroof, ambient sound options, and customizable mood lighting enhance the riding experience in the Sorento SX. Standard on all Sorento cars is a maximum cargo capacity of 2,139 liters, and buttons on the cargo area that prompt the middle seats to fold down. The power tailgate, unique to the SX, has a proximity function for added convenience.

Front passengers face a 12.3-inch infotainment touchscreen that’s connected to a similarly sized instrument cluster. Another touchscreen provides access to climate, multimedia, and navigation functions. The console below holds USB-C charging ports and a wireless charger.

Apple CarPlay and Android Auto are standard, but the range-topping model features a 12-speaker Bose sound system.

Aside from the standard six air bags, the Sorento EX+ and SX variants are equipped with Kia’s DriveWise advanced-driver assist systems. The AWD version has E-VMC or Electrification-Vehicle Motion Control that uses the electric motor and electronics to keep the vehicle steady during cornering and evasive emergency maneuvers.

In addition to the standard, five-year vehicle warranty, there’s an eight-year warranty for the hybrid system’s battery. Kia’s nationwide network of 40 dealerships assure after-sales support.

The railroading of House Bill 11360

February 17, 2025 | 12:03 am

On Feb. 3, during one of the last days of regular session before the adjournment for the midterm election campaign period, the House railroaded House Bill 11360, or what advocates call the Sin Tax Sabotage Bill.

The railroading of the Sin Tax Sabotage Bill was obvious. In the face of strong opposition to the bill that will lower tax rates and will result in a decline in revenues, the House leadership, including the Ways and Means Chair Joey Salceda, said that further hearings on the bill were canceled. Then House Speaker Martin Romualdez reneged on his commitment to cancel further hearings.

So, without even informing stakeholders in advance and without stakeholders getting any formal invitation, the House Committee on Ways and Means suddenly called for a briefing session on HB 11360 on Jan. 28.

A briefing session should not entail any voting on a measure. However, the briefing was suddenly and deliberately converted into a hearing mid-session, allowing the bill’s sponsors to force a vote and pass the Committee Report despite their inability to address the bill’s overwhelmingly negative revenue and health impacts.

The same Committee Report was calendared to be heard in the plenary the following day.

House Bill 11360 was passed on second reading at 2:09 a.m., Jan. 29, after amendments to include new provisions directly increasing the pork barrel of districts represented by the measure’s authors were inserted.

Despite the claims of its sponsors, namely Representatives Kristine Singson-Meehan, Rufus Rodriguez, and Mikaela Suansing, that HB 11360 would address illicit trade, the Sin Tax Sabotage Bill does not actually contain any among the globally recognized best practices to combat illicit tobacco trade. Instead, the bill deals two-fold damage to both fiscal and public health.

The lowering of tobacco taxes is bound to make cigarettes and other tobacco products more affordable. Making these products more accessible in this way will result in an increase in smoking incidence of over 900,000 new smokers. This places the public healthcare system in an even more precarious position, as it will be forced to bear the burden of the additional tobacco-related deaths and diseases amidst rapidly rising healthcare costs.

Furthermore, there is no substantial evidence that the bill will recoup revenues lost to illicit tobacco trade. Since the measure was filed, the Department of Finance (DoF) has made no effort to present any revenue estimates that would allow legislators to make informed policy decisions. In the agency’s failure to provide crucial data, the Secretary of Finance, Ralph Recto, has fallen short in his mandate to protect the government’s coffers.

The Finance Secretary must likewise be condemned for not objecting to a bill that will sabotage the sin tax law. HB 11360 is a bill that will further harm health and, at the same time, reduce revenues when the country is trying to address the fragile fiscal space. In truth, this is not surprising, since Secretary Recto has always promoted the commercial interests of the tobacco industry. His shameful support of a tobacco industry bill on taxes during the PNoy administration in 2012 prompted advocates to call him “Recto Morris” and led to his resignation as Chair of the Senate Ways and Means Committee.

The Sin Tax Sabotage Bill is nothing more than a shameless surrender to the tobacco industry’s will.

The bill’s sponsors, and all those who voted for the bill’s passage, are all complicit in sacrificing public health to boost the tobacco industry’s profits. Speaker Romualdez and his ruling clique in the House, and Finance Secretary Recto deserve the harshest condemnation for allowing the sabotage of the sin tax law to happen.

Their shameful act is but the most recent of other abominable acts they committed: the transfer of the funds of the Philippine Health Insurance Corp., better known as PhilHealth, to the National Government, giving PhilHealth a budget of zero in the 2025 General Appropriations Act, and allowing the diversion of the PhilHealth funds and sin tax revenues to finance pork barrel and political patronage.

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms while Therese Hipol is a researcher on its fiscal and health policy team.

Five celebrities on their favorite summer pieces

February 17, 2025 | 12:03 am

Heussaff-Curtis — SOLENN HEUSSAFF (left) poses in her AIRism Bra Sleeveless Top while JASMINE CURTIS-SMITH wears the Premium Linen Long Sleeve Shirt for a chic summer vibe.

UNIQLO’S Spring/Summer 2025 LifeWear collection is hitting the shelves with most already in stock. Still to come are the Uniqlo C collection with Clare Waight Keller which will debut on Feb. 28, while a collaboration with brand Princesse tam tam will debut in March.

To launch the collection in Rockwell on Feb. 7, they tapped the power of celebrities.

Actor and model Donny Pangilinan appeared onstage at Rockwell’s Balmori Tent wearing the brand’s Wide Tapered Jeans in white, paired with a jacket of the same color. “This is literally part of my lifestyle. I cannot go without the wide tapered jeans,” he said. “For me, this one, I can wear if I’m going to work, going to an event, going out with friends, or just chilling out with my family.

“Always have a fresh pair of jeans for anything,” added the actor.

Next came erstwhile it-girl Solenn Heussaff, and actress Jasmine Curtis-Smith. Ms. Curtis-Smith wore a pink shirt from the Premium Linen line, made of European flax. “It’s not see-through, but it’s got a really good, like, lining through it. Hindi ka maiilang (you won’t feel uneasy), and at the same time, when it’s hot, you want to make sure it’s breathable and you feel comfortable moving around in it. It’s really perfect for our humidity here,” she said. She wore this with yellow Bermuda shorts, also from the brand.

Meanwhile, Ms. Heussaff wore the brand’s Airism Sleeveless Bra Top (basically a top with a bra built into it). “You think about what T-shirt to wear, with what bra… this one, you won’t have to think. You just throw it on, which is honestly what I’m about nowadays. I’m always on the go, and I need something that really moves with me. It’s really light.” She matched the shirt with flowy pants from the brand, a pair of sunglasses, and cinched all of it with one of the brand’s leather belts.

Volleyball player Kianna Dy was also called onstage, and while in a green sweatshirt, she kept things active with a pale blue skort (shorts with a skirt panel sewn over them), from the brand’s Sports Utility line. “There are shorts inside, which makes it perfect for just a casual outfit. But also, I can use it for working out, if I want to look cute.”

Finally, influencer Niana Guerrero wore the brand’s latest collaboration with Disney, one of the Mickey Faces UT T-shirts, and the brand’s Barrel leg pants. Other collaborations include the MFA Boston Ukiyo-E shirts, Henri Matisse shirts, and one printed with photos of cats.

CLOTHES DRIVE
Reichelle Vergara, head of public relations and sustainability for Uniqlo in the Philippines, announced their previous clothing drive late last year to distribute clothing to the needy worldwide, giving around million pieces. This year, they’re bringing it locally.

“We have recently started our phase one of The Heart of LifeWear by donating 600 HeatTech item to communities in need in the Cordillera region,” she said. According to a company release, the donation is specifically for “single parents living in the Baguio area.”

They’re aiming to donate 10,000 Airism pieces around Manila and more communities. “We believe in the power of clothing,” she said. “Not only the customers, but of course, the communities we live in… also deserve to be comfortable.” — JLG

Surfshark: Philippines 3^rd most breached country among its peers in the region

February 17, 2025 | 12:02 am

The Philippines placed 27^th among 250 countries and territories in terms of data breaches in the fourth quarter, based on the latest data from Surfshark’s Global Data Breach Statistics. Despite this, the country logged a 95.1% decline in data breaches with 702,727 leaked accounts compared to 14,465,146 breaches in the previous quarter. During the period, the country was the third most breached country/territory in the region.

Vietnam open to boosting US farm imports as tariff risks rise

February 17, 2025 | 12:02 am

HANOI — Vietnam stands ready to import more farm products from the US, according to a statement from Trade minister Nguyen Hong Dien Friday, a day after US President Donald Trump said he would start imposing global reciprocal tariffs.

Vietnam, home to manufacturing operations of multinationals including Apple and Samsung, could be hit hard by any new tariffs. Last year, it posted a record $123.5-billion trade surplus with the US, the largest after China, the European Union and Mexico.

“Vietnam is ready to open its market and increase imports of agricultural products from the United States,” Mr. Dien told US Ambassador to Vietnam Marc Knapper at a meeting last week, the Vietnamese government said.

More than one-fourth of US exports to Vietnam last year were agricultural products, mostly cotton, soybeans and tree nuts, for a total value of $3.4 billion, according to US government data.

A White House official, who spoke to reporters before Mr. Trump ordered his team to devise a plan on reciprocal tariffs, said the administration would study countries with the biggest trade surpluses and highest tariffs first.

Among top US trading partners, Vietnam is one of the countries with the largest tariff gaps, charging higher import duties than those applied by the US.

Vietnam imposes average import duties of 9.4%, according to the World Trade Organization.

Last week, the government of Vietnam, whose largest market is the United States, set up a working group to address any rising risks from trade tensions.

Mr. Trump has not explicitly mentioned Vietnam as a trade target, but new 25% tariffs imposed this week by the US on steel and aluminium have already hit the Southeast Asian nation.

Many of Vietnam’s steel exports to the US, however, had already faced 25% duties, making that blow less heavy than on other exporters, one industry official said.

For Vietnamese aluminum, pre-existing US tariffs had been at 10%, Do Ngoc Hung, Vietnam’s trade representative in the US, told Vietnamese state media.

To reduce the trade surplus, Vietnamese officials have discussed with the Trump administration the possible purchase of US liquefied natural gas, multiple officials said.

Vietnamese budget carrier VietJet has also agreed to buy 200 Boeing 737 MAX jets in a multi-billion dollar deal first signed in 2016 and revised afterwards. No plane has yet been delivered although the company had said it expected to receive the first jets last year.

Vietnam has also been in talks to buy Lockheed Martin C-130 Hercules military transport planes, officials have said.

The Trump Organization has also agreed to develop a $1.5-billion golf course in Vietnam, its local partner said in October. — Reuters

PLDT unit partners with STC Bank for digital solutions

February 17, 2025 | 12:02 am

PLDT INC., through its subsidiary PLDT Global Corp., has partnered with Saudi Arabia’s STC Bank to enhance and streamline financial solutions.

“This partnership will enable us to provide Filipinos and all customers in Saudi with cutting-edge digital solutions that meet their evolving needs,” PLDT Global President and Chief Executive Officer (CEO) Albert V. Villa-Real said in a media release on Sunday.

Under the agreement, STC Bank will be integrated as a payment option in PLDT’s one-stop-shop platform, Tindahan ni Bossing (TinBo), and PLDT Global’s digital platform and app.

Additionally, STC Bank will offer Vortex products on its platform, PLDT said, noting that this will facilitate financial transactions while providing users with flexible and secure payment options.

The partnership also aims to strengthen cybersecurity measures to ensure safe digital transactions, PLDT added.

STC Bank CEO Nizar Altwaijri said the collaboration aligns with the bank’s goal of expanding digital banking accessibility while ensuring seamless and efficient transactions for its customers.

PLDT shares closed P10, or 0.74%, higher on Friday, ending at P1,360 apiece.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Yields on BSP securities end higher on weak demand

February 17, 2025 | 12:02 am

YIELDS on the central bank’s short-term securities rose on Friday as both tenors went undersubscribed.

The Bangko Sentral ng Pilipinas (BSP) securities fetched bids amounting to P151.057 billion on Friday, below the P190-billion offer and the P205.117 billion in tenders for the P170 billion auctioned off in the previous week. The central bank awarded P150.057 billion worth of bills.

Broken down, tenders for the 28-day BSP bills reached P60.185 billion, lower than the P90-billion offer and the P110.309 billion in bids for the P70 billion placed on the auction block a week ago. The central bank accepted P59.185 billion in bids.

Accepted yields ranged from 5.75% to 5.84%, higher than the 5.725% to 5.799% band seen a week earlier. This caused the average rate of the one-month securities to increase by 3.86 basis points (bps) to 5.7957%% from 5.7571% previously.

Meanwhile, bids for the 56-day bills amounted to P90.872 billion, also below the P100-billion offering and the P94.808 billion in tenders for the same volume offer the week prior. The BSP accepted all tenders submitted for the tenor.

Tenders accepted by the central bank carried yields ranging from 5.785% to 5.929%, likewise higher than the 5.763% to 5.9% margin seen a week ago. With this, the average rate of the securities went up by 2.31 bps to 5.8372% from 5.8141% logged in the prior auction.

The central bank uses the BSP securities and its term deposit facility to mop up excess liquidity in the financial system and to better guide market rates.

The BSP bills were calibrated to not overlap with the Treasury bill and term deposit tenors also being offered weekly.

Data from the central bank showed that around 50% of its market operations are done through the short-term BSP bills.

Short-term instruments offer more stability and predictability, the BSP earlier said.

These are also considered “high-quality liquid assets” and grants more flexibility for banks versus term deposits, which are not tradable. — Luisa Maria Jacinta C. Jocson

All-electric Porsche Macan now in the Philippines

February 17, 2025 | 12:02 am

Porsche’s compact crossover is now a battery electric vehicle (BEV). — PHOTO BY KAP MACEDA AGUILA

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Stuttgart brand steps up journey to sustainability

AT THE RECENT Enrique Zobel Memorial Polo Cup, Porsche Philippines unveiled the new all-electric Macan. This marks the full electrification of the brand’s compact crossover, continuing an earnest journey toward greater sustainability.

Currently heading the new all-electric Macan two-model range in the country is the Macan Turbo, which generates 639hp and 1,130Nm torque from two permanent magnet synchronous motors — sending power to the front and rear axles, creating an electric all-wheel drive system. Porsche reports a standstill-to-100kph time of 3.3 seconds — onto a top speed of 260kph. Complementing the top Macan Turbo model is the new all-electric Macan 4. Similarly equipped with two motors and an all-wheel drive system, the Macan 4 produces 408hp and 650Nm, reaching zero to 100kph in 5.2 seconds.

The new all-electric Macan features an 800-volt technology, guaranteeing fast charging times. Its DC charging capacity of up to 270kW allows its battery to be charged from 10% to 80% in about 21 minutes. Alternating current charging can reach 11kW via a household Wallbox. Additionally, energy can be recuperated via the new Macan’s electric motors. With a fully charged battery, the new all-electric Macan Turbo can travel up to 590 kilometers while the Macan 4 can reach up to 612 kilometers (both according to WLTP testing).

The new all-electric Macan is clearly recognizable as part of the Porsche model family, thanks to the crisp lines and distinct proportions that hallmark Porsche’s design DNA. This brand signature has been further developed and optimally adapted to the requirements of an electric vehicle.

Short overhangs, a wheelbase longer than the previous model, a slightly sloping hood, and muscular fenders give the model a more dynamic look. Also contributing to this are the unmistakable Porsche flyline, raked coupe-like window silhouette, frameless doors, and the side blades that have been a styling signature of the model.

The new all-electric Macan’s headlights are split into two parts. The flat upper light units with four-point daytime running lights are embedded in the fenders and emphasize the width of the vehicle. The main headlight modules with matrix LED technology are placed lower on the front end. At the rear, the Porsche logo sits in the center of the sculptural 3D taillight strip.

The model’s two electric motors are controlled in real time. The electronic Porsche Traction Management (ePTM) operates about five times faster than a conventional all-wheel drive system, and can respond to wheel slip within 10 milliseconds. In addition, the new all-electric Macan’s all-wheel drive distribution is governed by the selected driving program. Its Porsche Active Suspension Management (PASM) features shock absorbers with two-valve technology, expanding the spectrum between comfort and performance.

With the electrification of the Macan, Porsche has introduced a completely new display and control system into the model. The Porsche Driver Experience in the new all-electric Macan offers a mix of digital and analog elements, including an instrument cluster with a 12.6-inch curved display, a 10.9-inch central display, and a 10.9-inch passenger display.

A new feature is the ambient lighting with a communication light. Depending on the situation, it provides information or warnings — such as when greeting the driver, during charging, or in conjunction with the driver assistance systems. The Porsche Driver Experience’s upgraded design comprises a “welcome” animation, an even more modern look and feel, and the new Themes app that adjusts the background color of the displays and the ambient lighting to match the exterior color. Included as standard, the Porsche Communication Management (PCM) in the new all-electric Macan takes computing performance to a new level.

The new all-electric Macan’s interior is unmistakably Porsche, where the driver and passengers sit lower than in the previous model. Rear passengers are afforded more legroom. The sloping shape of the center console heightens the impression of a low and performance-focused seating position. Expansive window openings result in an airy feel in the cabin.

Electrification has led to increased luggage space behind the rear seat — up to 540 liters. When the rear seat is folded, the space expands to 1,348 liters. Adding to this is the “frunk” under the hood that has a capacity of 84 liters.

Goldbug FOMO is setting up the market for a fall

February 17, 2025 | 12:02 am

MARKETS always look their very best at the top — that’s increasingly the case with gold as it nears $3,000 a troy ounce. It’s behaving like a Veblen good, an item for which, contrary to the laws of economics, demand increases with price. Can the momentum be sustained?

One key sign of froth is plausible-sounding pet theories for extra cavalry coming over the hill. A couple of beauties are doing the rounds presently.

First, there’s speculation that the Trump administration will revalue its gold deposits, now booked at $42 per ounce, up to the current spot price. This magically would add around $800 billion to the asset side of the US balance sheet. The net effect is that less debt would need to be sold, which is a positive for Treasury bonds and the dollar, but the logic for this being a boost for gold escapes me.

Secondly, 10 Chinese insurers were permitted this month to put 1% of their balance sheets into physical gold — potentially as much as the equivalent of $27 billion. This rule change had been widely expected in gold circles for several months — even I knew of it. But gaining the ability to purchase is a big step away from wading in all guns blazing at the all-time high. The Chinese central bank is widely cited as the biggest buyer of recent years. After several months’ pause, it added 15 metric tons in the last two months of last year. However, the premium for Shanghai-traded gold normally rises on yuan weakness, but not this year. It suggests that Chinese demand isn’t the current driver for new highs. So what is?

Vanda Research, an investment consultancy, points to US institutional buyers diversifying portfolios to hedge against fallout from Trump tariff risks. It also notes that most of this year’s price gains are being made in US trading hours, not during the Asian day. Momentum funds have been chasing repeated new highs. However, these types of inflows tend to reverse very quickly if the upside pace isn’t sustained.

Complications with the delivery of gold into New York Comex futures contracts have exacerbated a short squeeze. Everyone knows gold offers no return and is expensive to store but flying it from depositories in London, Toronto, or Zurich to New York adds a whole new cost level. Arbitrages this wide rarely last long. Nonetheless, US-listed exchange traded funds are finally seeing a pickup in inflows, after barely registering a flicker of interest in gold’s rally this past year.

The usual golden rules are in abeyance, bar one — that the pet rock is the classic inflation hedge. For now the focus is very much on the inflationary effects of tariffs — even this is so far more a political battle of wills than an economic reality. Yet, the core price consumption expenditure index, which the Federal Reserve monitors closest, has remained under 3% for the past year. Similarly, five-year forward inflation swaps are tracking close to 2.5%. Yes, these are all above the Fed’s 2% target, but Chair Jerome Powell is relaxed, with a bias still to ease interest rates. Deutsche Bank AG analysts reckon all the likely US-imposed tariffs and reciprocal reactions would add at most 0.4% to US CPI. It explains some gold strength but not a 45% surge over the past year.

Trump is all about maintaining the global reserve status of the dollar, not promoting a rival. Gold typically has an inverse relationship to the dollar, and high US Treasury yields are usually kryptonite for gold. Any curtailment in US borrowing should reduce the fear factors that gold evidently is thriving on. Furthermore, there aren’t any imminent economic or monetary policy shocks looming that I can espy. If anything, the geopolitical environment is calming down. For sure, equities are showing precious little concern about tariff risks — the German DAX index is even leading the charge this year despite being potentially a hotspot for Trump’s ire.

Gavekal Research points out that all of the bull rationales for gold are very clear, or known knowns, but the bearish catalysts aren’t. Peace deals in Ukraine and the Middle East would cut gold’s momentum off at the knees. It’s also worth noting that the usual fellow riders with the yellow metal, such as physical gold miners and other precious metals like silver, aren’t in this posse. Gold may be hot right now, just as Bitcoin is taking a breather, but failure to reach or stay above the $3,000 level for long might blow off some froth.

BLOOMBERG OPINION