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SEC lifts investor warning vs DV Boer

Securities and Exchange Commission (SEC) logo

THE Securities and Exchange Commission (SEC) has lifted its investor warning against DV Boer Farm International Corp. after it agreed on the company’s P3.015-million settlement offer.

In a Jan. 31 order posted on its website, the SEC said it had approved the settlement from the farming investment company and has received a partial payment of P300,000 last week. The remaining P2.715 million must be paid within the next three months.

DV Boer also submitted an affidavit stating it will stop selling investment contracts through its “Paiwi Program” until it obtains a separate registration from the SEC, and it will allow the SEC to send representatives to inspect its farm in Batangas for at least a three-month period.

“…(the) case is now deemed settled without any determination of fault or guilt on the part of DV Boer Farm International Corp.,” the SEC said.

To recall, the SEC issued in April 2019 an advisory against investing in DV Boer as it found the company operating an investment scheme called “Paiwi Program.” It involves goat leasing for dairy and meat, cattle raising, and other similar programs for rabbit and chicken, with packages costing between P10,000 and P2.06 million.

The SEC said the program is not registered with the commission and the company is not authorized to sell securities. Without a secondary license and without registering the securities with the SEC, the company is illegally operating the investment scheme as it violates the Securities Regulation Code.

The SEC initially imposed a P6.03-million fine on DV Boer in November, derived from 578 Paiwi Partners multiplied by P10,000 and five directors multiplied by P50,000. The company filed its first settlement offer in December, which was denied by the SEC in January.

In its second attempt at a settlement, DV Boer explained it cannot pay the original fine because of a “liquidity problem” from difficulty accessing banks and increasing losses as a result of animal deaths in its farm as affected by the Taal Volcano’s eruption.

The SEC then approved in a meeting on Jan. 23 reducing the fine on DV Boer to P3.015 million. The settlement offer is made effective upon public disclosure of the order. — Denise A. Valdez

Consumers set to start retaining phone numbers

MOBILE phone users may start applying for mobile number porting in the third quarter of this year, Globe Telecom, Inc. Chief Commercial Officer Alberto M. de Larrazabal said.

“I think the schedule is third quarter [of] this year,” Mr. Larrazabal told reporters on Friday last week, when asked about the actual rollout of the mobile number portability services.

He added: “What we are doing in the Philippines is we are setting up the clearing house.”

Globe, PLDT, Inc.’s wireless unit Smart Communications and new player Dito Telecommunity Corp. have tapped Florida-based Syniverse as their mobile number portability service provider.

Syniverse will serve as a clearinghouse for the telcos to ensure the smooth implementation of number porting services. The company assists mobile operators globally in managing and securing their mobile and network communications.

“The three of us are investing [in the clearing house], and we will set it up,” Mr. de Larrazabal said.

He said the three telco firms will jointly appoint someone to manage the clearing house.

The three telco firms received on Jan. 21 an approval from the Securities and Exchange Commission on the incorporation of the Telecommunications Connectivity, Inc., which they jointly put up to implement the Mobile Number Portability (MNP) Act.

The new company, according to Globe, will “enable number porting services in line with the new mobile number portability initiative of the government or Republic Act 11202 also known as the ‘Mobile Number Portability Act.’”

The MNP Act, which was signed by President Rodrigo R. Duterte into law in February 2019, allows mobile phone users to switch networks without changing their numbers.

Under the law, mobile number portability refers to the ability of a mobile postpaid or prepaid subscriber, who has no existing financial obligation to the service provider, to retain an existing mobile number despite having moved from one mobile service provider to another, or to change subscription mode from postpaid to prepaid or vice versa.

The law requires telcos to provide mobile number portability to subscribers nationwide free of charge.

Every telecommunication service provider has to change subscription mode within 24 hours from the time a subscriber submits application, the law also said. — Arjay L. Balinbin

Bill collection of ‘stranded’ power costs ends in Feb.

THE Power Sector Assets and Liabilities Management Corp. (PSALM) will cease collecting the P0.0543 per kilowatt-hour (kWh) universal charge for stranded contract costs (UC-SCC) starting this month, the government agency said.

“This is a relief to power consumers all over the country as they are no longer going to be charged the UC-SCC,” it said in a statement over the weekend.

It said the move translates into a reduction of P5.43 for every 100 kWh of electricity consumption.

PSALM said it had started advising electricity distribution and collecting utilities to terminate the implementation of the UC-SCC.

The move comes after the Energy Regulatory Commission ruled on April 10, 2019 that PSALM was permitted to recover P5,117,060,647.80 through the UC-SCC. But based on the computation of PSALM, the recoverable amount could already be covered by the UC-SCC imposed in the January 2020 billing period.

Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 defines UC-SCC as the “excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy.”

The UC-SCC charges were intended to pay the remaining financial obligations that the government incurred because of the construction of new power plants to alleviate the power shortages in the 1990s and early 2000. — VVS

Banana exporters push gov’t to set cap on exit prices

DAVAO CITY — The banana export industry wants the government to set a cap on the exit price of the commodity to help smooth out seasonal swings in demand and fluctuations in the harvest.

Alberto F. Bacani, chair of the Pilipino Banana Growers and Exporters Association, Inc. (PBGEA), said setting an exit price cap, or the price imposed on the crop before it is shipped to its destination, is practiced in Ecuador, one of the world’s biggest exporters.

“What I would ask the government to do is to follow the model of Ecuador… the (Ecuador) government heavily intervenes in terms of pricing,” Mr. Bacani said in a news conference Friday.

“We should not (become) an expensive banana,” he said, adding that the open pricing system makes it difficult for the industry to develop sustainability plans given altering demand as well as the continued threat from Panama disease and emerging competitor countries.

PBGEA President Victor S. Mercado said independent growers, such as some agrarian reform beneficiaries, that do not have contracts with buyers face the biggest risks.

2019 N-COV
The 2019 novel coronavirus (n2019-nCoV) has become an added threat to the banana industry with China being its biggest market, overtaking Japan in the last two years.

“What is scary is we have become dependent on the China market,” said Mr. Bacani.

Mr. Mercado said some Chinese buyers have already indicated a likely drop in orders due to the 2019-nCoV outbreak.

As of November, the value of exported Cavendish banana rose to $1.8 billion from $1.38 billion in all of 2018, according to the Philippine Statistics Authority.

Mr. Mercado, however, said while the value was higher, PBGEA data shows production actually fell to 195 million metric tons (MT) last year from 207 million MT in 2018 due mainly to a mild drought, which is expected to continue this year.

“But the biggest threat that has really caused the reduction (in the size of the farms) is Panama disease,” he said.

PBGEA estimates about 30,000 hectares have been affected by the soil-borne infestation.

“It is where government assistance is needed,” he said, citing both technical and financial support for affected farmers.

Mr. Mercado, president of the Marsman-Drysdale Agribusiness Group, also said that the exodus of local experts is continuing as other Asian countries seek them out to develop their own banana industries.

“Their biggest (advantage) is that they are closer to China,” he said, referring to Vietnam.

Mr. Bacani, president of Unifrutti Tropical Philippines Inc., said a team that recently visited Cambodia also saw progress in its banana industry development given the availability of farm areas.

“It’s scary,” he said, but added that the more than 50-year old local industry maintains a major advantage in terms of skilled labor. The labor force in Cambodia, he said, “is still hard to manage.”

“It will take a while before (other countries in Asia) can catch up with the Filipino way of growing bananas,” Mr. Bacani said, but added that government intervention is needed to ensure the industry’s long-term global competitiveness. — Carmelito Q. Francisco

DoE appeal to suspend P18-billion tax deficiency denied

DoE logo

THE Court of Tax Appeals (CTA) denied for lack of merit the appeal of the Department of Energy (DoE) over the dismissal of its petition to suspend the collection of its P18.4 billion alleged tax deficiency.

In a four-page resolution dated Jan. 30, the court’s second division affirmed that it does not have jurisdiction over the case between the DoE and the Bureau of Internal Revenue.

The court noted that under Presidential Decree No. 242 disputes and claims between government agencies and offices — including government owned or controlled corporations shall be settled by the secretary of justice, the solicitor general, or the Government Corporate Counsel depending on the issues and government agencies involved.

“It is plain that the instant case between petitioner, a department of the executive branch of the government and the CIR who is the head of BIR, a government agency, is purely an intra- governmental dispute and claims shall be settled or adjudicated in accordance with PD No. 242. Accordingly, the Court is bereft of jurisdiction to take cognizance of the present case,” the resolution read.

“Thus, the Court finds no cogent reasons to reverse or modify the ruling in the assailed Resolution,” it added.

In its motion for reconsideration the DoE said that Section 7 of Republic Act No. 1125 regarding the jurisdiction of the CTA, disputes and claims among government offices remain in the jurisdiction of the CTA.

Section 7 of the law said the CTA has jurisdiction over decisions of BIR on assessments, refunds, among others. It also settles decisions of the Bureau of Customs over liabilities on custom duties, fees, and matters under Customs law.

It also has jurisdiction over decisions of provincial or city Board of Assessment Appeals in cases in real property or matters under Assessment Law.

The resolution was penned by Associate Justice Juanito C. Castañeda, Jr. and concurred in by Associate Justices Cielito N. Mindaro-Grulla and Jean Marie A. Bacorro-Villena.

The court in November last year, in a resolution, dismissed for lack of jurisdiction the petition for review, with urgent motion for suspension of collection of taxes, which assails the Warrants of Distraint and/or Levy and Garnishment issued by the BIR for the collection of alleged deficiency taxes of P18.4 billion over the “removal and export condensates out of Service Contract No. 38.”

In upholding the settlement under PD 242, the court cited a previous Supreme Court decisions. — Vann Marlo Villegas

Sharing our way out of a crisis

ALMOST TWO WEEKS have passed since the historic Senate hearing for the legalization of motorcycle taxis. In internet speak, that means four to five different news cycles; or in the old language, yesteryear’s news. But here’s why you should still care.

This affects us all, whether or not you use the service.

I fought for motorcycle taxis not because I ride one. I have done, of course, but I ended up getting my own Vespa instead when it started getting impossible to get an Angkas. So I basically privatized my way out of the problem. But that doesn’t mean the problem doesn’t exist. In fact, I know that deep in my heart, I’ve only added to it by introducing yet another motorized private vehicle to the road — especially when there was an option (and more importantly, a willingness) to share. And that is the most heartbreaking thing about this whole fiasco: We were told that we’re not allowed to share.

We all saw what happened when Uber left. Service quality plummeted, prices skyrocketed. New car sales skyrocketed. And the 50,000 to 60,000 cars that were once used for TNVS either went to their competitor or, worse, back to a private individual where one car services one family. You could call it a coincidence, of course, but the last two years since that fateful day have been the worst years on record for traffic but the best years for Grab. And now, we’re back in the exact same spot, talking about the exact same issue (just swapping four wheels for two) — proposing the exact same regulations, but hoping for a different result.

What our regulators need to understand is that you cannot regulate your way out of a crisis. It’s like trying to regulate hunger, pain or feelings. You need to go to the root cause. And the root cause of us riding motorcycle taxis is that there’s no better option out there. It’s that simple. So if you rob us of that, those who have the means will privatize their way out of the problem and create a bigger one by buying their own motorcycle, while those who can’t will just have to suffer — period. Think of coding; think of Uber leaving.

But don’t get me wrong. I’m not trying to totally disregard the concerns of the regulators here. They do have some points. It’s just that, if it’s really as dangerous as they say, why do we allow anyone to ride or sell a motorcycle in the first place? How exactly does it make it any less dangerous when you don’t charge your passenger for the ride? What kind of forcefield does it deactivate? Regulators will argue that it is because it is a common carrier and it comes with an increased responsibility; and we (meaning any road user born before yesterday) will just take one glance at a regulated jeepney, bus, taxi, tricycle and truck and say, “Sige, kami na lang maga-adjust (okay, we’ll adjust).”

Also, think of the message a ban sends to innovators, especially at a time when we should be turning to tech as a weapon against traffic. We are basically telling them: Your ideas are NOT welcome here. I mean, who knows what the next big thing will be? If none of us saw Uber coming, or Netflix, Spotify, Viber, online banking, etc., who is to say that the next great app to disrupt or revolutionize the buses, jeepneys or tricycles is not at the tip of some developer’s keyboard? But because we created such an inhospitable (dare I say hostile) environment for them, they will either not develop it or take it somewhere else.

I said in my Senate speech that change is the only way out of this mess. That’s still true; We can’t do it without change, but there’s also one other way. We can also share our way out of it. It’s our only hope. Because try and imagine a world without shared resources. We would literally have to generate our own individual electricity and fetch our own water from our own private well. A shared economy, plus our ability to cooperate in large numbers and turn our thoughts into things, has seen Sapiens evolve from one of the most vulnerable species in the animal kingdom to the most dominant one. It’s time we use it against our new predators, like traffic.

It’s 2020, for crying out loud. When I was a kid, I thought we would be in flying cars by now. Instead, here we are going backwards. We love to talk about progress but we chain ourselves to the past with a public service act that was written in 1936. We now live in an exponential era, and we need laws that can keep up.

The good news here is that there is a piece of legislation that is being drafted by Senator Grace Poe as we speak. Now I know what some of you are thinking, but for whatever criticism I have seen about Senator Poe, she understands this issue. The mere fact that she still remains the only one to give the riding public a voice here speaks volumes, and has earned her my full support. But it needs a lot more than that. It needs you.

But I hate motorcycle riders. They are so unruly and are a menace on the road.

I hear you. I too have had my vehicle scratched by a careless motorcycle rider before. I’ve also had my car scratched by an unruly jeepney driver and got rear-ended by a bus that ran out of brakes. The point here is, kamotes (as they have come to be known) come in all shapes and sizes. They are not exclusive to two wheels. In fact, they get exponentially worse as they increase to four, 10, 18, etc. The problem is not the vehicle type but the nut behind the wheel. That is what you need to fix, and that is done at the LTO level with stricter licensing and driver education and enforcement. Let’s not confuse the issue.

In fact, if anything, creating a space and a legal framework for these motorcycle taxis will allow for mandatory training at a level that is on par with the rest of the world. That’s if we demand it, of course; which we can, so long as we start now. Because every day that we procrastinate, the habal-habal community grows, and so will the number of private motorcyclists that will have just privatized their way out of the problem and will no longer be answerable to anyone.

It will only be a matter of time before we will totally lose control of this and the animals take over the zoo, so to speak.

 

James Deakin is a multimedia, award-winning automotive journalist; events host; inspirational speaker; key opinion leader; brand ambassador; road safety advocate; TV host; and presenter at CNN Philippines.

New Zealand seeking Mindanao green energy, agriculture partnerships

By Maya M. Padillo
Correspondent

DAVAO CITY — The New Zealand government wants to bring its expertise in two sectors, renewable energy (RE) and agriculture, in Mindanao through various partnership schemes, according to its new envoy.

“We are interested in working together on areas where we have strengths and one of those is the renewable energy. That is one of the areas we want to work and support in Mindanao,” Ambassador Peter Kell said in an interview late Thursday on the sidelines of a scholarship promotion event.

He said New Zealand is particularly interested in helping develop green energy sources in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) as a way of supporting government efforts on peace and economic development in the restive region.

Mr. Kell noted that 80% of New Zealand’s energy supply is currently from hydropower, geothermal, wind, and solar, and the government is aiming for a 100% green mix by 2035.

“That means we have to up the proportion of our RE… If there are other projects where we can draw our strengths on RE, then we will be very interested,” he said.

Honorary Consul of New Zealand in Mindanao Vicente T. Lao, also chair of the Mindanao Business Council, said biomass is another RE source that can be explored with New Zealand.

Mindanao, he said, has a lot of potential biomass input from the banana farms and other agriculture areas.

“The technology we have in biomass is not that advanced. We have so much biomass in Mindanao and it’s just being thrown away right now. I think we have a good potential in biomass generation,” Mr. Lao said.

AGRICULTURE
In agriculture, New Zealand’s biggest trade sector, Mr. Kell said he will be building on initiatives made by his predecessor, David Strachan, including strengthening cooperation with the Mindanao Development Authority (MinDA)

Among the programs under discussion with stakeholders involves BARMM areas.

“The talks were done with my predecessor and I am here to continue those discussions,” he said.

The envoy also announced that the New Zealand government has provided $2.4 million in financial aid package for the training of mango sprayers and growers in Mindanao.

“Protocols such as what we need to spray properly, what kind of chemicals that you can spray with, and when to stop spraying,” Mr. Lao said.

In December, MinDA, representing the Philippine government, signed a three-year co-investment project with the New Zealand Embassy and NZ G2G Partnerships Ltd. for mango exports.

One of the items under the program is a feasibility study for setting up quality assurance systems for fresh mango to ensure compliance with sanitary and phytosanitary standards.

Mr. Lao said exporting mangoes will mean much higher income for growers with prices of up to P400/kilo compared with an average P50/kilo farm gate price for the domestic market.

Mr. Kell was in Davao City on Jan. 20-31 to promote the New Zealand Scholarship program in various local academic institutions.

Agriculture and green energy are among the priority sectors for the post-graduate study, along with disaster risk management, and public sector management, including peace and conflict, and indigenous studies.

Pampering for those in a rush

AFTER the success of its main The Retreat Spa, intergrated casino-resort Okada Manila has decided to create a spa concept for people who want to relax but have little time on their hands. The result is the Sole Retreat.

“The Retreat was made for a complete spa experience so it can take a few hours, but Sole Retreat is for people who might have a flight in a few hours but still want to get a massage,” Vikki Aquino, director for spa, fitness, and recreation told BusinessWorld during the launch on Jan. 23.

Located at the third level of the resort’s Coral Wing, the Sole Retreat Foot Spa and Reflexology Center, offers reflexology treatments, massages, nail services, and facial treatments.

It offers two kinds of reflexology treatments: the Ingham method which uses a “rhythmic finger and thumb walking” technique to give the benefits of pressure point therapy sans the pain. The therapist who did the reflexology treatment for this writer said this method is best for beginners to reflexology treatments.

(It did hurt a bit, especially on the arch of my right foot — the therapist said it’s because my shoulders are stiff.)

They also have the Asian reflexology method which uses “deep finger, thumb-knuckle pressure and rubbing technique” where pain represents the sensitivity of nerve endings which, according to a release, should lessen after further sessions.

Reflexology is a centuries-old practice which started in China and Egypt where by pressing into the foot’s “zones” that is said to correspond to areas or organs in the body.

The center is equipped with 22 seats (or “thrones,” as the center likes to call them) in a common treatment room and five seats in a private lounge.

Each seat can fully recline and is adjustable for those having a full-body dry massage, facial, or nail service.

The facial and nail treatments can be done concurrently with the reflexology treatment.

“The treatments can be done without disrobing though we do provide massage pajamas for those who want it,” Ms. Aquino said.

Sole Retreat also allows children to avail of its services provided they reach a height limit of at least 110 centimeters. The Retreat, on the other hand, can only be accessed by people aged 16 and above. This, Ms. Aquino said, makes Sole Retreat perfect for spa parties or family events.

Foot therapies start at P2,750 for 20 minutes, to P5,550 for 60 minutes. Additional services such as a full back massage can cost P2,250 for 30 minutes, while “naked” manicures and pedicures cost P1,300 each.

Facials such as the Ultra Sonic Peel cost P4,900 for a 45-minute session.

The spa also offers set treatments starting from P11,500 which combines reflexology, massage, and “naked” manicure and pedicure.

For more information, call the Sole Retreat at 8555-5778 or e-mail thesoleretreat@okadamanila.com. the Sole Retreat is open daily from noon to midnight. — Zsarlene B. Chua

PAGCOR income falls 71%

THE Philippine Amusement and Gaming Corp. (PAGCOR) reported a 71.4% drop in its net income in 2019 to P9.014 billion despite posting double-digit gains in its gaming operations.

Last year’s decline in net profit was a reversal of the company’s performance in 2018 when its bottom line surged by 536% after a one-time gain from the sale of a 16-hectare site in Entertainment City for P37.3 billion to Bloomberry Resorts Corp.

Broken down, income from gaming operations rose 11.6% to P75.75 billion last year from P67.85 billion in the previous year.

Of this amount, about half or P35.92 billion were remitted to the national government as its share of revenues while 5% or P3.78 billion were paid as franchise tax.

Net of gaming taxes and contributions, total income reached P39.64 billion, down 42.1% from the figure in the previous year.

PAGCOR’s total expenses went down by 17.3% to P30.48 billion from 2018’s P36.86 billion.

The company did not immediately respond to a request for comment. — Beatrice M. Laforga

Toyota leads PHL car market upswing in 2019

RECOVERING from the effects of the Tax Reform for Acceleration and Inclusion (TRAIN), which helped to contract the market in 2018 due to a general increase in vehicle prices, the Philippine automotive market finished 2019 with a 2.4% growth rate capped by a strong fourth quarter from most industry players.

In a speech at the recent Toyota Motor Philippines Corporation (TMP) media thanksgiving party, company chairman Alfred Ty said, “As industry leader, it is Toyota’s role to drive the industry back to sustainable growth. We will continue to be this country’s solid partner in nation-building. In fact, as of end-2019, TMP has paid a total of P384.3 billion (in) cumulative taxes since the start of our operations.”

He added that TMP was able to maintain its 2,195-strong Filipino work force, not counting those employed by its network of 71 dealers nationwide. The company also beefed up its efforts to stimulate the market through various customer service and value-added activities, driving the sales of 162,011 units and cornering market share of 39.5% for the year. Of the total, 54,028 were produced locally in TMP’s Sta. Rosa manufacturing plant in Laguna.

Toyota’s locally assembled passenger car, the Vios, entered under the Comprehensive Automotive Reform (CARS) program, remained as the country’s best-selling vehicle with 33,181 units sold. This puts the brand on track to deliver its commitment under the program. Said Sherwin Chualim, first vice-president for marketing division, “We sincerely appreciate the motoring public for their trust and confidence in Toyota throughout the years.”

HYUNDAI ANGELES CITY DEALERSHIP UNVEILED
Angeles City, Pampanga is the site of Hyundai’s newest dealership. Known as a commercial, financial and industrial hub, and the entertainment and gaming center of Central Luzon, Angeles now hosts Hyundai Angeles, the second passenger car dealership in the region of the South Korean global brand. It is the third Central Luzon showroom operated by the Hizon Group, which is among first four pioneer dealers of Hyundai in the country.

“We are right where we should be,” said Hyundai Asia Resources, Inc. President and CEO Maria Fe Perez-Agudo. “The third Hyundai dealership under the Hizon Group is designed to respond to the needs of the booming business, tourism, and transport industries of Angeles.”

Hyundai Angeles Pampanga Deputy COO Yves Amiel Hizon affirmed: “My mom said my father saw the future of Hyundai. (He) had faith. Hyundai Pampanga opened in December 2001 and is currently third in its area in market share. Hyundai Tarlac, which opened in November 2007, ranks second.” This third-generation Hizon is now bent on carrying on his father’s legacy by bringing Hyundai Angeles to success in this new decade.

Sidelights of the inauguration were the signing of a memorandum of understanding (MoU), allocating some 700 units of the Hyundai H-100 Class 1 Modern Jeepney to local transport groups; and the turnover of an H-100 ambulance to the local government. Both activities signify Hyundai’s solid support for the national PUV modernization program.

Last year, HARI sold 33,763 units and generated 2.9% growth in December versus the same month in 2018, enabling it to maintain its position in the market as one of the top automotive brands in the Philippine market. Customers can visit Hyundai Angeles on MacArthur Highway, Balibago, Angeles City, Pampanga.

AUTOHUB OPENS NEXTHUB AUTO CARE
To strengthen its position as the country’s “premier multi-brand automotive distributor and service provider,” the Autohub Group inaugurated maintenance and repair shop NextHub Auto Care.

The establishment positions itself as an alternative after-market service center for out-of-warranty or inactive customers whose vehicles need repairs. The 2,200-sqm. facility houses 17 bays which can collectively service 50 cars per day. The facility promises to provide top-notch and accessible services at reasonable prices.

Basic services such as oil change, tire and battery checkup, steering and suspension, brake checks, among others, are available at NextHub. The new service center also offers a selection of car accessories, vehicle insurance renewal, new and used car sales, spare parts for all car brands, and even an in-hub convenience store. Highly skilled technicians are equipped with advanced tools, ensuring high-quality service from start to finish.

NextHub Auto Care is part of Autohub’s AIM Up (Accelerate, Innovate, Move Up) campaign. “We wanted to take the ‘three-star shop’ mentality of our car buyers to the next level. We will cater to all after-warranty cars and to those who opt to have their cars serviced at shops other than casa. Our price is very competitive, and we have high-grade facilities that could accommodate all your car repair needs,” said a company release.

NextHub Auto Care is located at Cabrera Road, Brgy. San Juan, Taytay, Rizal, at the back of Nissan Taytay. For more information, follow NextHub Auto Care on Facebook, or call 0917-867-6479.

NISSAN GOES MOBILE WITH ‘SERVICE ON WHEELS’
Nissan Philippines now makes house calls or on-site after-sales service and repair with its “Service on Wheels” program, a mobile solution that “provides excellent vehicle care and services to more customers outside Nissan service centers.”

The program allows participating Nissan dealerships to deploy dedicated service vehicles manned by two Nissan-certified technicians. The vehicles are customized to contain various tools and equipment to provide a number of services including light periodic maintenance, vehicle diagnosis, replacement of consumable items such as tires, brakes, and batteries; light repairs; and emergency roadside assistance.

The service will be available in select Nissan dealerships across the Philippines.

Said Atsushi Najima, president and managing director of Nissan Philippines: “Service on Wheels is a way for (us) to extend our expertise in vehicle care outside our service centers. This gives a new and exciting dimension to our reliable services by delivering satisfaction to our customers, wherever they are.”

For more information, call the Nissan Customer Assistance Center Hotline at (+632) 8403-6593 or (0927) 600-9557 or any Nissan dealership.

Cocoa seen weakening by end-2020, but still set for annual gain

KRISTIANA PINNE/UNSPLASH

LONDON — London cocoa futures will fall 6% by the end of the year, weakened by the prospect of rising production in Ivory Coast and Ghana, a Reuters poll of nine traders and analysts showed.

However, prices should still post an annual gain following a sharp rise this month, it indicated.

London prices were seen ending 2020 at 1,850 pounds a tonne, down 6% from Wednesday’s close, according to the median forecast of survey participants, but still 4% higher than the market close at the end of last year.

Respondents expected there would be a more balanced market in 2020/21, with a median forecast of a marginal deficit of 5,000 tonnes compared with a more significant shortfall of 70,000 tonnes in 2019/20.

They noted the decision by Ivory Coast and Ghana to charge a Living Income Differential (LID) effective the 2020/21 season could weigh on the future price.

The world’s top two producers announced in July 2019 that 2020/21 purchases must include the LID, a $400 premium to the futures price, in a bid to tackle pervasive farmer poverty.

Funds raised will be used to help increase payments to farmers.

“There will be continued volatility in the futures market influenced by the LID in Ivory Coast and Ghana,” one respondent said, adding higher farmer prices could boost production.

Ivory Coast cocoa production in 2020/21 was seen rising to 2.25 million tonnes from a median forecast of 2.20 million in the current season, while Ghana’s 2020/21 crop was projected at 905,000 tonnes, up from 875,000 tonnes.

New York cocoa prices were also seen falling from current levels while still posting an annual gain, with an end-year projection of $2,600 a tonne, down 5% from Wednesday’s close but up 2% from a year earlier. — Reuters

Treasury bill rates to end mixed ahead of inflation, policy meet

YIELDS ON Treasury bills (T-bills) on offer today will likely end mixed as investors may stay on the sidelines ahead of inflation data due Wednesday and the Monetary Board’s (MB) position on policy rate the following day.

The Bureau of the Treasury (BTr) will offer P20 billion in T-bills on Monday, broken down into P6 billion each for 91-day and 182-day T-bills and P8 billion for the 364-day papers.

The auction for five-year Treasury bonds earlier scheduled on Tuesday was canceled since the offer period for the 23rd retail Treasury bonds is still ongoing until Thursday.

Sought for comment, a bond trader said the three-month and six-month papers will likely fetch lower rates while the yield on the one-year T-bills may just move sideways.

“Factors to consider are the recent outbreak of coronavirus, the CPI (consumer price index) data to be released [this] week and the MB meeting later in the week,” the trader said via telephone.

At the secondary market, yields on the 91-, 182- and 364-day T-bills were at 3.303% 3.474% and 3.896% on Friday.

Last week, the government fully awarded P20 billion in T-bills as planned as rates declined across-the-board on strong demand.

Specifically, P6 billion was raised from the three-month papers out of the P18.832 billion bids, at an average rate of 3.297%, lower than the 3.39% yield fetched in the Jan. 20 auction.

The government borrowed another P6 billion as programmed via the six-month papers out of tenders worth P11.995 billion. The yield on 182-day T-bills also dropped to 3.597% from the previous 3.652% rate.

For the 364-day securities, the Treasury accepted P8 billion as planned out of total bids worth P13.689 billion. The average rate for the one-year papers likewise declined to 3.963% from 3.971% previously.

Michael L. Ricafort, chief economist at the Rizal Commercial Banking Corp., said the T-bill yields will likely be “steady” or move slightly lower amid easing of global interest rates due to rising concerns on the new virus outbreak and a potential global economic slowdown.

“In view of the recent decline in global oil prices and lower benchmark interest rates/bond yields in the US and other developed due to global economic growth concerns over the novel coronavirus, the markets are also anticipating the possibility of monetary easing in the upcoming monetary policy-setting meeting on Feb. 6, 2020, a day after the Feb. 5 announcement of the inflation data, as both of these events may be the biggest market catalysts for the week,” Mr. Ricafort said on Sunday via mobile phone message.

On Sunday, the Department of Health (DoH) reported the first novel coronavirus acute respiratory disease (2019-nCoV ARD) death outside of China, as another patient positive for the virus died on Feb. 1. This brought the confirmed cases in the Philippines to two.

The DoH said the first 2019-nCoV ARD fatality in the country was a 44-year-old man who traveled to the Philippines from Wuhan, China with the 38-year-old woman who was confirmed positive for the virus last week.

As of Sunday, the DoH said there are 36 persons under investigation for the virus.

Economic managers last week were quick to assure that the outbreak will have a minimal impact on the tourism sector as travels abroad will be limited, adding that it is still too early to measure its effect on the economy.

For private economists like UnionBank of the Philippines, Inc.’s research department, the country’s trade and tourism sectors will take a hit over the long term if the outbreak lasts at least six months.

Meanwhile, the Philippine Statistics Authority will report on Wednesday, Feb. 5, inflation data for January, while the Bangko Sentral ng Pilipinas (BSP) Monetary Board will have its first rate-setting for the year the day after on Thursday, Feb. 6.

BusinessWorld’s poll of 13 economists yielded a median estimate of 2.7% for January headline inflation, with analysts citing upside risks from the Taal Volcano eruption and a rise in some food prices still due to the African Swine Fever.

If realized, the reading will mark the third straight month of an uptick in inflation and will be faster than the 2.5% seen in December. However, this is still slower compared to the 4.4% pace in January 2019 and also falls closer to the lower end of the 2.5-3.3% range given by the BSP. This is also well within the 2-4% target for the year.

Meanwhile, 10 out of the 13 economists who joined the inflation poll were of the view that the BSP Monetary Board will ease rates by another 25 basis points (bps) this Feb. 6.

BSP Governor Benjamin E. Diokno last week said the central bank is still looking to bring down rates by around 50 bps in 2020. He said a 25-bp cut could also be considered as early as this quarter.

The BSP last year cut rates by a total of 75 bps, partially unwinding the 175 bps worth of hikes implemented in 2018 to quell multi-year high inflation.

Benchmark rates currently stand at 3.5% for the overnight deposit facility, four percent for overnight reverse repurchase and 4.5% for overnight lending.

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

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