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A harvest of prints to last years

FILIPINO brand Plains & Prints summons spring with its new collection featuring its signature Spring Harvest prints.

BusinessWorld was at the launch of the collection last week, which featured a botanical print as if pulled from a Rococo catalogue. The print features berries, flowers, and plants in the lush of full bloom.

Roxanne Farillas, Plains & Prints co-founder, explained that the collection appears not just on clothes, but accessories such as bags, hats, and scarves, and is meant to represent the season. “We wanted to come up with a print that’s very youthful, carefree, and very vibrant,” she said.

To channel this youthfulness, the brand also collaborated with Youtube influencer Rei Germar (1.25 million subscribers as of today). Ms. German will appear in some online campaigns for the brand. “We wanted to showcase this Harvest print as very youthful,” said Ms. Farillas.

The brand was founded in 1994 in Greenhills, and this collection was launched at the lobby of SM Mega Fashion Hall, within sight of global fast fashion giants. Asked how the brand remains relevant despite the stiff competition, Ms. Farillas noted, for example, that they’re visible online (on their own website, and on Zalora, Lazada, Shopee, and Amazon), in response to the online shopping boom.

But also, all threads still lead to the product: “We make sure that when people buy Plains & Prints, it’s an investment piece for them. Something affordable yet something that will last them for a few years — not just a season.” — Joseph L. Garcia

Malaysia palm oil producer Sime Darby to work with environmental groups

KUALA LUMPUR — Malaysia’s biggest palm oil producer Sime Darby said on Friday it is committed to working with environmental groups, days after a senior executive called for government action against them.

Franki Anthony Dass, chief advisor and value officer at Sime Darby Plantation — the world’s biggest palm oil company by land size — told an industry forum on Tuesday that non-governmental organizations (NGOs) were orchestrating attacks on palm oil.

“If they are so unfriendly, why allow them to be in our countries Malaysia and Indonesia,” he said. “We have the right to control this and do something drastic for once.”

Indonesia and Malaysia are the top two producers of palm oil, the cultivation of which is blamed for large scale deforestation in Southeast Asia and for endangering wildlife, such as orangutans and pygmy elephants.

Sime Darby said that Franki made his comments in his capacity as chairman of the Malaysian Palm Oil Certification Council, the national sustainability body, and his comments did not refer to all NGOs.

“It was referring to the misbehavior of certain unreasonable NGOs that are trying to discredit painstaking efforts by the industry to raise its sustainability standards via certification such as the Malaysian Sustainable Palm Oil,” the company said in a statement to Reuters, referring to the Malaysian green certificate for palm oil.

Environmental groups, especially in Europe, have called on palm oil producers to be more sustainable.

Sime Darby said it has collaborated with many NGOs in its path to sustainability and will continue to do so.

Palm oil is used in everything from ice cream to lipstick to fuel.

Last year the European Union legislated to phase out palm oil use in renewable fuel by 2030 because of concerns about deforestation.

Producers, though, say palm oil buyers including major consumer goods companies, must share responsibility because they don’t buy enough sustainably produced oil, undermining efforts to reward those who adopt greener practices and reduce deforestation. — Reuters

SEC warns of Champion investment scheme

THE Securities and Exchange Commission (SEC) continues to flag more fraudulent investment groups for offering securities without obtaining regulatory licenses.

An advisory on the SEC website last week warned the public against investing in Champion International Corp./Madenu Champion Marketing International, Inc. (Champion), which it said does not have authority from the regulator to solicit investments.

“[T]he Commission wishes to inform the public that Champion is not authorized to solicit, accept or take investments from the public nor to issue investment contracts and other forms of securities…since it does not have a secondary license issued by the Commission…,” it said.

It said the company operates by inviting the public to invest their money in exchange of a 400% return on investment in more or less than 30 days. It offers a P3,000 minimum entry package with a P100 registration fee, which would reward an investor P3,000-worth of herbal products such as whitening soaps, coffee, healing oil and food supplements.

Other programs collect as much as P30,000 from an investor with a P1,000 registration fee on top, which is supposedly equivalent to a net profit share of P64,800.

Champion also offers a “Fasttrack” option where a member who could recruit 10 people within two weeks may earn extra through profit sharing.

“Those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly,” the SEC said.

It identified the incorporators, directors and officers of Champion as Felicisimo Fallurin Enduma, Jr., Joan Delos Reyes De la Pena, Cyril Fallurin Enduma, Arnold Miranda Alzate and Gilbert Valerio Enduma, Jr.

“[T]he names of all those involved will be reported to the Bureau of Internal Revenue so that the appropriate penalties and/or taxes be correspondingly assessed,” it said.

Under the Securities Regulation Code, violators may be fined a maximum of P5 million or 21 years of imprisonment, or both.

“[T]he public is hereby advised to exercise caution in dealing with any individual or group of persons soliciting investments for and on behalf of Champion,” the SEC said. — Denise A. Valdez

Treasury bill rates likely to drop

RATES OF THE Treasury bills (T-bills) on offer today will likely decline slightly following the central bank’s decision to cut policy rates and hints on another reduction by midyear.

The Bureau of the Treasury (BTr) will auction off P20 billion via T-bills, broken down into P6 billion in 91- and 182-day papers and P8 billion in 364-day instruments.

A bond trader said the papers may fetch slightly lower rates after the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board slashed the rates last week by 25 basis points (bps).

At the Feb. 3 auction, the Treasury made a full award of the P20 billion worth of T-bills it auctioned off as rates mostly declined on strong demand.

It raised P6 billion via the 91-day T-bills as planned at an average rate of 3.187%, 11 bps lower than the 3.297% quoted in the auction on Jan. 27.

The BTr also awarded another P6 billion worth of 182-day papers as programmed at an average rate of 3.964%, up by just 0.1 bp from the 3.963% quoted last week.

For the 364-day securities, it raised P8 billion as planned out of P12.522 billion in bids. The one-year securities were quoted at an average rate of 3.964%, up by 0.1 bp from the 3.963% quoted the prior week.

Yields on the 91-, 182- and 364-day T-bills closed at 3.249%, 3.469% and 3.929% at the secondary market on Friday, based on the PHP Bloomberg Valuation Service Reference Rates.

“Yields of T-bills for auction this week could trend 5-10 bps lower from previous auction following the cut in policy rates on Thursday, coupled with dovish remarks from [BSP] Governor [Benjamin E.] Diokno that another rate cut is still possible by mid-2020,” the trader said via mobile phone message over the weekend.

Following the cut, the reverse repurchase rate now stands at 3.75% while the rate of the overnight lending and deposit facilities are now down to 4.25% and 3.25%, respectively.

In an interview with Bloomberg TV on Friday, Mr. Diokno hinted on another 25-bp rate cut by the middle of the year but said the BSP will remain data dependent.

For UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion, the auction is expected to be met with stronger demand as investors may flock to safer assets like the T-bills.

“With a lot of uncertainties about the impact of the 2019-nCoV, (novel coronavirus) the demand for the T-bills may be stronger than usual. These are safer assets during these times,” Mr. Asuncion said in a phone message.

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. — Beatrice M. Laforga

Lexus x Grand Seiko event showcases ‘takumi’ affinity

Text and photos by Kap Maceda Aguila

WHAT DO Lexus and Grand Seiko (GS) have in common?

Aside from the obvious, that they’re both premium brands born in Japan, the two also feature vaunted takumi (the Japanese word for “artisan”) craftsmanship in the process of churning out sterling products that are no cookie-cutter creations.

Last week, these values came to fore when the Lexus Manila showroom at the Bonifacio Global City became a meeting place for watch aficionados already cognizant of the virtues of Grand Seiko (or GS).

The event was in keeping with a year-long push for GS as it turns 60. The company flew in master craftsman Takuya Nishinaka, and previewed anniversary pieces for its milestone year. Four limited editions with dials in the signature blue of GS will be locally available soon.

The story goes that in the 1950s, “a small team of Seiko’s finest watchmakers came together with a very simple yet ambitious aim: To create the very best watch of which they were capable, with the highest possible levels of precision, legibility, durability and ease of use.” This dream came to fruition in December 1960, and “grand” was added as a prefix to Seiko to represent the team’s ambition to “create the king of watches.”

At the Lexus Manila showroom, Mr. Nishinaka performed a live demonstration of watch assembly in front of Lexus, GS, and media guests. Displaying amazing dexterity and attention to detail, he worked on completing a GS Snowflake. The timepiece, known to enthusiasts as the SBGA211, has an eye-catching textured dial evoking, yes, snow. In a release, GS says this “unique pattern resembles the snow surface blown by the rough wind in the severe winter of the Shinshu area, where the watch is made.” Mr. Nishinaka is also currently in charge of training a younger generation of watchmakers.

Aside from previewing three of the anniversary watches to be launched here, local distributor Timeplus showcased a range of Grand Seiko pieces which were sold with a 20% discount for the night only.

Three GS collections are currently available. “Heritage” is composed of classic watches evoking the spirit of the earliest Grand Seiko timepieces, “re-interpreted with the very latest movements, manufacturing techniques and craftsmanship.” Meanwhile, “Elegance” is said to convey “strength and resilience to be worn every day while offering a special level of refinement that makes them the perfect choice for those landmark occasions in life where everything has to be just right.” Lastly, “Sports” appeals to people with a more active lifestyle, and features divers’ watches and chronographs.

Lexus Manila president Raymond Rodriguez said to this writer that the hosting of the GS event made sense as there are shared values between the two Japanese brands. “Both feature takumi craftsmanship. The two brands are a perfect fit. It’s all about being particular with design and thinking about customer needs and demands,” he averred.

Mr. Rodriguez added that just as how GS highlights attention to detail, “We at Lexus are passionate about how we execute our cars — the interiors, the leather, the appointments. We’re both about the attention to detail and craftsmanship… It’s not about mass production but personalization.”

In a statement, Timeplus president Karl Dy revealed that aside from the Snowflake, more GS styles will be brought into the country.

For more information, visit www.grand-seiko.com/ph-en, follow Grand Seiko Philippines on Facebook and Instagram (@grandseikophilippines). Seiko boutiques are located on the ground floor of Glorietta 1 of the Ayala Center in Makati City, second floor of SM Aura Premier in Taguig City, and third floor of SM Seaside Cebu.

Zilingo online shopping platform launches its MSME B2B portal in PHL

FASHION and lifestyle e-commerce platform Zilingo has launched a business-to-business portal to help MSMEs (micro, small, and medium enterprises) “[scale] up their businesses efficiently,” according to its Philippine executives.

“Zilingo is re-imagining the entire supply chain and aggregating all parties within the same platform by offering services and software that can help businesses do better,” Sheila Mauricio, head of sales and business development at Zilingo Philippines, said in a statement.

The new portal, called Zilingo B2B, allows retailers and manufacturers access to Zilingo Asia Mall, a global marketplace for fashion and lifestyle items. Ms. Mauricio likened Asia Mall to China’s Alibaba but focused on sourcing fashion and lifestyle items.

“Southeast Asia is the fashion hub of the world — this is where most of the clothes are made,” Ms. Mauricio told BusinessWorld during an event on Feb. 7 at the Chateau 1771 Restaurant in Bonifacio Global City (BGC), Taguig.

Aside from the marketplace, Zilingo B2B also offers cataloging, marketing, and financial services.

“We [offer] everything a business might need to scale up in this platform,” Ms. Mauricio said.

Their cataloging services allows businesses to bring their items to the Zilingo office in BGC or to their third-party partners for the items to be photographed and compiled into a catalog.

“For a small retailer who is just starting out, cataloging will cost upwards of P20,000 since they’ll be hiring photographers, but with this service we charge starting at P100 per item,” Ryza Dipatuan-Razo, Zilingo marketing director, said in the same event.

For flat photos without models, Zilingo charges P100 per item but for catalogs with models, they charge P200.

Zilingo also handles sourcing for items as they are currently growing a supply team which will onboard manufacturers for sellers.

“We expect to introduce a hundred sellers this year on the supply side,” Ms. Mauricio said.

But if retailers can’t find suppliers locally, a team will assist them in sourcing their items in other places like Bangladesh or Vietnam.

The platform also offers financial services via a pay-later scheme once businesses place their orders on Asia Mall.

“Our interest rates are much lower than the banks, we charge less than 1% per month interest,” Ms. Mauricio said.

The service, which launched in 2017 in markets like Indonesia, accounts for a majority of Zilingo’s overall revenue, something they hope to replicate in the Philippines.

“The good thing about our service is there’s no exclusivity: you can buy from Asia Mall or use our cataloging or marketing service and you can sell in other platforms like Lazada or Shopee,” Ms. Mauricio said before noting that this is one of the biggest draws of the service.

Indonesia is currently their biggest market for B2B and Ms. Mauricio said the Philippines is poised to become second once the B2B business is fully operational.

“Judging from how fast we’ve grown our business-to-consumer platform (Zilingo.com), we’re optimistic in the growth of our B2B business,” she said.

Zilingo’s retail platform launched in February last year in the country. The platform is currently in the US, and in Hong Kong, Bangladesh, Vietnam, among other Asian countries. — Zsarlene B. Chua

Phase 1 deal’s broad goals included in USDA’s WASDE report

CHICAGO — The US Agriculture Department’s closely watched monthly supply and demand forecast will factor in the broad goals of the Phase 1 trade deal, but details of China’s purchase commitments will not be part, the agency’s top economist said on Thursday.

USDA’s commodity forecasts do consider trade actions or agreements that are in place as of the time the reports are published, the agency said in a white paper released Thursday.

So while the broad goals of the deal will be considered, the specific details are not available, USDA Chief Economist Robert Johansson told Reuters in an interview.

“We don’t have the details of the Phase 1 agreement in particular,” he said. “We have the overarching sort of goals and that is going to be considered by analysts as they come up with all the WASDE estimates.”

The agreement calls for China to boost its purchases of US agricultural commodities by $40 billion over the next two years.

While the Phase 1 deal may contain specific purchase commitments for individual commodities, “the Office of the US Trade Representative (USTR) has not released that information publicly, and it therefore plays no direct role in USDA’s market analysis and forecasts,” according to USDA’s white paper.

Other unknowns include “whether retaliatory tariffs will apply to those purchases or the timing of those purchases in a given calendar year,” according to the paper. “Moreover, commodity-specific commitments are not publicly available and are therefore not considered in the published forecasts.”

“There are a lot of different ways to get the Phase 1 agreement” dollar figure, Johansson said. “We do not really know what path that is going to be at this point in the year.”

Commodity traders and grain merchants have been waiting for signs of a pick-up in Chinese demand, particularly for soybean exports from the world’s number one buyer of the oilseed. But export sales from the United States have remained sluggish since the deal was signed.

Chinese demand for US exports typically slows this time of year as the South American harvest begins.

USDA will incorporate recent export activity, crop sizes in the U.S. and overseas, and other market information into its outlook, Johansson said. The government also will have to track the impact of coronavirus and African swine fever in the monthly report. — Reuters

UP, UE to open volleyball of UAAP 82

By Michael Angelo S. Murillo
Senior Reporter

THE University Athletic Association of the Philippines Season 82 volleyball action kicks off later this week with the UP Fighting Maroons and UE Red Warriors first to take the court.

Commencing at the Mall of Asia Arena in Pasay City on Feb. 15, the new season will also adopt a new program format that will see men’s and women’s teams play alternately during game day.

The change in format from the previous setup where the men play in the morning and the women in the afternoon, made by the league with broadcast partner ABS-CBN S+A, was arrived at to give men’s volleyball more exposure, especially coming on the heels of a highly successful outing of the national men’s team in the recent 30th Southeast Asian Games where it won the silver medal.

“With the success of the Men’s Volleyball team in the last SEA Games, it is about time that we put Men’s Volleyball side by side with the Women’s Volleyball,” said league president Emmanuel Fernandez of season host Ateneo de Manila University in a statement.

For the first round, the teams facing off for the men’s side will also be the same pairing in the women’s game.

First to see action are the University of the Philippines and University of the East.

The UP and UE men’s teams collide in the scheduled 9 a.m. with the women’s squads going at it at 10:30 a.m.

The UP and UE men will try to get their respective campaigns going on a winning note coming off a rough Season 81 where they were the two bottom teams at the end of the elimination round and failed to advance to the next phase.

Their women’s counterparts, too, also have the same mindset with the end view of finally making it back to the Final Four.

The Fighting Maroons, dropping the “Lady” in their moniker beginning this season, finished last year at fifth with a 6-8 record, the third straight year they failed to make it to the semifinals of the UAAP.

Veterans Isa Molde, Tots Carlos and Justine Dorog have decided to play in their final year of eligibility, something the Godfrey Okumu-coached team looks to ride on as it makes its push.

The Lady Warriors, meanwhile, look to make better on their seventh place finish in Season 81, led by veteran holdovers Mean Mendrez and Seth Rodriguez and under the lead of second-year coach Karl Dimaculangan.

Also playing on opening day are the University of Santo Tomas and Far Eastern University.

Their men’s play joust happens at 2 p.m. and the women’s at 3:30 p.m.

Also playing on opening weekend, Sunday, Feb. 16, are Adamson University and National University — 9 a.m. men’s and 10:30 a.m. women’s — and rivals Ateneo and De La Salle University in the afternoon session.

Defending UAAP volleyball champions are NU for the men’s side and Ateneo in the women’s.

All UAAP games will air live on ABS-CBN S+A Channel 23, ABS-CBN S+A HD Channel 166, LIGA SkyCable Channel 86, LIGA HD SkyCable Channel 183, iWant and via livestream.

BIR loses to Taganito in tax claim

THE Bureau of Internal Revenue (BIR) loses its bid over the P38.8-million tax credit certificate claim granted to mining firm Taganito HPAL Nickel Corp.

In a seven-page resolution on Feb. 6, the court’s second division denied for lack of merit the partial motion for reconsideration filed by the BIR.

The court noted that Taganito’s direct exports sales of P1.2 billion are attributable to its unutilized input-value added tax (VAT) for 2013.

“As to petitioner’s compliance with the other requisites for claim of refund, the same were thoroughly discussed in the Decision assailed,” the court said.

“Hence, in view of the foregoing, this Court finds that respondent failed to raise any new or substantial matter, or compelling reason to justify the reversal or modification of the assailed Decision,” it added.

BIR claimed that the company is not entitled to its refund claim of unutilized excess input VAT for 2013. It also claimed, among others, that to be creditable, “the input tax must come from purchases of goods that form part of the finished product of the taxpayer or it must be directly used in the chain of production.”

It also claimed that connection between purchases and finished product should be “concrete” and nothing in the decision shows “direct attributability” of purchases or input tax to the finished product which sale is “zero-rated.”

The court said that Section 112(A) of the Tax Code allows a tax credit or refund of creditable input VAT to be attributable to zero-rated sales.

It said the law only requires that creditable input VAT should be attributable to zero-rated or effectively zero-rated sales and does not require the creditable input tax to be “directly attributable” to the sales.

“That where the amount of the allowable input tax paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately to each category of transaction,” the court said.

“In the present case, the input VAT paid by petitioner in the course of its trade or business are considered to be entirely attributable to its export sales considering the absence of taxable or exempt sales for TY 2013,” it added.

The appellate court also said that the cited case to support the bureau’s arguments cannot be applied as it was based on an earlier regulation.

The CTA also said the BIR failed to raise new arguments that would prompt the reversal of its decision.

The court in November last year partially granted the tax credit certificate claim of the company, allowing only the amount of P38.8 million out of its P39.8 million claim of unutilized input VAT attributable to its VAT zero-rated sales.

The input VAT in the amount of P992,062.97 was disallowed as the corporation, which is registered with the Philippine Economic Zone Authority (PEZA) failed to prove it as consumed or rendered outside the ecozone. Purchases done outside the PEZA zone are subject to 12% VAT.

Associate Justices Cielito N. Mindaro-Grulla and Jean Marie A. Bacorro-Villena concurred in the decision. — Vann Marlo M. Villegas

Normalizing the higher breed

Text and photos by Kap Maceda Aguila

TO PARAPHRASE that almost ubiquitous tee with the swoosh, Toyota knows hybrids — even if many of us probably do not.

Quietly, the Prius has marked a decade of presence here in the Philippines. Long before fiscal relief was extended to hybrids through the Tax Reform for Acceleration and Inclusion (TRAIN), Toyota Motor Philippines (TMP) had made the vehicle available as perhaps a promise of what could be.

Noted and respected third-party testing company Consumer Reports fawns over the Prius — giving it, the Prius Prime (the plug-in hybrid [PHEV] version), along with, yes, the Corolla Hybrid its “Best Hybrids/Plug-in Hybrids” nods. The Honda Insight also makes its way to this elite club, although well, this model is nowhere in sight (sorry, that was just begging to be said) yet in these parts.

I am of the opinion that the correct way to regard a hybrid is to forget that it’s one. Let me explain. People are wary of the unknown, the unproven. We celebrate uniqueness, yes, but in many aspects we don’t want to be the outlier. We go for the safe, the known, the comfortable. Last year, no Priuses were sold — zero; the year before, that total was six. Hardly inspiring.

But that number is deceiving. Consider that, in September last year, Toyota Motor Philippines launched in a big way the all-new Corolla Altis. Bar none, the Corolla is the most successful nameplate in history. We grew up aware of the name and the many iterations of the car that is today being built in 15 plants spread over 13 countries. More than 46 million Corollas have rolled out of production lines. Locally, it holds a dear place in our hearts to the tune of some 220,000 sold over the decades.

The additional significance of the 12th generation’s release is that it is the first Corolla generation to feature a hybrid variant. Since its local launch, 89 units of the hybrid variant (1.8 V HV) have been sold. Whether it is a result of a more attainable price point (P1.58 million versus the P2.339 million tag of the Prius) or the undeniable familial affinity with the Corolla brand, more people today are surely getting a better appreciation of hybrid benefits. The word is getting out, finally.

While the Prius has certainly taken giant leaps in the looks department, there may still be people out there who think it’s just a little too funky-looking for their palate. On the other hand, the Corolla hybrid assumes the look of its ICE-powered brethren, with tasteful, tiny cues to indicate a hybrid heart. There’s the blue tinge on the front logo and within the headlamp assembly (featuring bi-beam LEDs and LED daytime running lamps), plus tiny “Hybrid” decals on the back and side.

It has a rather subdued front fascia, marked by a black maw-like feature on its lower portion flanked by two chrome-accented fang-like pseudo air dams. The rear is also highlighted by chrome appointments and small, elegant taillamp assemblies (LEDs, too). It’s almost as if the Corolla doesn’t care to stand out — and in a good way. You could easily see the shared look with its luxe big brother Camry. It’s not far-fetched to invoke the gods of Lexus because you could almost sniff out their handiwork here.

The muted look extends into the dark-colored interior with an uncomplicated layout. Dull silver accentuates the black, soft-touch materials of the dash and door panels. There’s nothing to feel “threatened” by within. We’ve heard that some people think a steep learning curve precedes comfortable hybrid ownership. Perish the thought. In fact, the only thing that might initially jar you is that when you first push the start button, you might not realize the car is already good to go because, well, you don’t hear or feel a thing.

That’s the electric motor, capable of delivering up to 71hp, at work. When its state of charge and your demand for power allow, the 1.8-liter, four-cylinder VVTi engine (97hp, 142Nm) shuts off and gives way to battery-powered goodness.

And when the internal combustion engine does engage (remember that you don’t have to fuss over the operation as the vehicle does everything automatically), the nickel-metal hydride battery charges. Three driving modes are available (Sport, Eco, Normal), giving the driver more control over throttle response. It might surprise you that this Corolla can actually get pretty zippy — all the while saving you frequent trips to the gas station. I had the hybrid with me over the Christmas season and, despite the insane congestion, it mustered 18 kilometers per liter with nary a sweat. I wasn’t even half trying to hypermile. We asked some TMP people who reported that their local, real-world testing yielded an average of 22kpl.

Some motorists have expressed fears that wading through floods in a hybrid might mean electrocution. Toyota assures us that the electric motor’s battery (which is under the rear seat) has a waterproof cover. In the remote change that reason water seeps in, the system will cut the battery out.

The Corolla Altis rides on the Toyota New Global Architecture (TNGA) platform, which imbues benefits in the areas of agility, stability, and visibility. It’s a platform the Corolla shares with the Prius and the Lexus UX. NVH (noise, vibration, and harshness) levels have also been mitigated, a quality I can attest to.

The hybrid variant of the Corolla Altis is given the Toyota Safety Sense suite of features first seen in the new Hiace Super Grandia Elite. As in the van, the 1.8 HV gets a pre-collision system (PCS), lane departure alert (LDA), and automatic high beam (AHB). Meanwhile, it debuts in the Philippine market the lane tracing assist (LTA) and dynamic radar cruise control (DRCC) functions. All these mean a safer drive, and I did feel like someone was minding how I was at the wheel.

In addition, standard on all Corolla variants are seven SRS airbags, anti-lock brakes with electronic brakeforce distribution, vehicle stability control, hill start assist, and three-point emergency locking retractor seatbelts for all occupants.

So really, who’s afraid of hybrids? Why should you be?

Fuel economy, parking sensors and camera, suite of safety features, good looks in and out, head-turning 17-inch alloys, ample power, rear blower

Infotainment head unit needs an upgrade, USB port on side of unit is unsightly

Finally, a hybrid for you and me.

Yields on gov’t securities decline on BSP rate cut

YIELDS ON government securities fell almost across-the-board last week following the central bank’s decision to cut benchmark rates by a quarter of a percentage point.

Debt yields, which move opposite to prices, went down by an average of 4.9 basis points (bps) week on week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of Feb. 7 published on the Philippine Dealing System’s website.

At the secondary market last Friday, yields were lower than week-ago levels almost across- the-board. In the short end of the yield curve, the 91- and 182-day Treasury bills (T-bills) declined by 5.4 bps and 0.5 bp to fetch 3.249% and 3.469% respectively. On the other hand, the rate on the 364-day T-bills went up by 3.3 bps, yielding 3.929%.

At the belly of the curve, the rates on the three-, four-, five-, and seven-year Treasury bonds (T-bonds) fell by 4.5 bps (4.187%), 6.5 bps (4.263%), 7.3 bps (4.309%), 7.9 bps (4.348%) respectively. The rate on the two-year T-bond was unchanged at 4.062%.

In the long end, the yields on the 10-, 20-, and 25-year T-bonds went down by 6.2 bps (4.394%), 6.1 bps (4.990%), and 12.7 bps (5.034%) respectively.

“The decline in local yields was primarily driven by market expectations of a possible policy rate cut from the BSP (Bangko Sentral ng Pilipinas) and lingering concerns over the coronavirus outbreak, which is highly viewed to negatively impact local and global economic activity,” a bond trader said in an e-mail.

“The downward pressure on yields was largely felt toward the long-term end of the curve, mirroring investor worries over the possible economic repercussions of the latest coronavirus outbreak,” the bond trader added.

ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro shared the same view in a separate e-mail: “Higher-than-expected inflation prompted some profit-taking after the market rally over the last few weeks. The reaction was muted, however, with the market correctly anticipating a cut in the policy rate during the BSP’s Monetary Board meeting on Feb. 6,” he said.

The BSP’s Monetary Board decided in its first review for the year last Thursday to cut key policy rates by 25 bps, bringing the overnight reverse repurchase rate to 3.75% and the overnight deposit and lending rates to 3.25% and 4.25%, respectively.

The Monetary Board also decided to raise its inflation forecast for the year to three percent from 2.9%, but kept its view for 2021 at 2.9%. Both forecasts still fall within the central bank’s 2-4% target.

The decision came a day after the Philippine Statistics Authority reported January headline inflation at 2.9%, its fastest pace in eight months or since the 3.2% reading in May 2019. The 25-bp rate cut also followed 75 bps rate cuts last year and 175 bps of rate increases in 2018 amid a high inflation environment.

Following the policy decision, BSP Governor Benjamin E. Diokno said geopolitical tensions have weakened prospects for global economic growth. He also noted the spread of the 2019 novel coronavirus could adversely affect economic activity and market sentiment in the coming months. The manageable inflation environment, he said, allowed room for a “preemptive reduction” in key rates.

Mr. Diokno also said central bank estimates showed the outbreak could dent the country’s economic growth in the first half by an average of 0.3% — by 0.2% for the first quarter and by 0.4% in the second quarter.

For this week, the bond trader said local yields are seen to go up “amid easing concerns” over the coronavirus outbreak, as well as “possible upward pressure in global yields” from a likely stronger US inflation that will be reported on Thursday.

Meanwhile, ATRAM’s Mr. Liboro noted the market has “aggressively priced in” a rally on the sale of the three-year retail Treasury bonds (RTBs) that ended last week, expecting it to move “from its coupon of 4.375% down to the 4.20% level.”

Mr. Liboro was referring to the Bureau of the Treasury’s sale of three-year RTBs that ended last Tuesday, two days ahead of the original schedule following strong demand. The raised amount of P310.8 billion exceeded the previous record-high RTB issuance worth P255 billion in 2017 and P235.935 billion last year.

“Current levels across the yield curve already reflect this and how the security trades upon listing will be the short-term catalyst. Should demand be sufficient to take it below 4.2%, we could see a continuation of the current rally. However, if profit-takers prevent it from moving down past 4.2%, we could see an adjustment higher on the longer-tenor securities as the yield curve reprices,” Mr. Liboro said. — Jobo E. Hernandez

Lazada holds sale to push its unified beauty portal

E-COMMERCE platform Lazada is holding a month-long sale this month to celebrate the “empowered Filipina” and to promote its unified beauty portal, Beauty by Lazmall.

“We really wanted to create an end-to-end beauty digital user experience for the Filipina beauty maven and… we wanted to make it easier for her to discover the newest and the most exclusive beauty brands and to discover the best deals, and experience beauty tech innovations,” Neil Trinidad, chief marketing director for Lazada Philippines, told BusinessWorld during the launch on Feb. 5 at the Mind Museum in Bonifacio Global City, Taguig.

The platform, which launched last week, consolidates brands selling on Lazada.

“All the brands on the platform are official stores so customers can be sure that what they’re buying is authentic,” Mr. Trinidad said.

Brands inside the Beauty by LazMall include L’Oreal, Disney by Luxasia, Clinique, Burt’s Bees, and Jeffree Starr Cosmetics, among others.

“We have a wide selection of beauty brands and we also have brands that are only exclusive to Lazada,” he added.

This month, Lazada had scheduled themed sales including a Valentine’s Day and Pay Day sale on Feb. 13 to 15, a Home and Living sale on Feb. 17-19, and the Baby Fair sale on Feb. 19-21. The sale offers over 300,000 deals and 200 brands up to 80% off, according to a release. — ZBC