France marks 10th anniversary of deadly Paris attacks
PARIS — France marks the 10th anniversary on Thursday of attacks in Paris in which Islamic State gunmen and suicide bombers killed 130 people in a rampage through cafes, restaurants and the Bataclan concert hall, and many survivors are still traumatized.
The attacks were the deadliest on French soil since World War Two, scarring the national psyche and prompting emergency security measures, many of which are now embedded in law.
The assault began with suicide bomb blasts outside the Stade de France sports stadium where then-President Francois Hollande and the German foreign minister were watching a friendly soccer international, and continued with gunmen opening fire at five other locations in central Paris.
Starting at 11:30 a.m.(1030 GMT), President Emmanuel Macron will join officials, survivors and relatives of victims paying tribute to those killed and wounded in the attacks. The memorial events begin at the Stade de France and move on to the restaurants and cafés that were attacked, as well as the Bataclan.
ATTACK ON THE BATACLAN
Sebastian Lascoux was inside the Bataclan where the rock band Eagles of Death Metal were playing when what he thought was the noise from firecrackers pierced the concert hall. It quickly became apparent that the venue was under attack.
People “ended up all squashed together and collapsed as one,” he recalled. “And then (there was) the smell of blood,” said Mr. Lascoux, now aged 46. One of his friends was shot dead trying to shield another member of their party.
“He saved her life,” added Mr. Lascoux, who still suffers from post-traumatic stress and cannot be in crowded places or enclosed spaces, even cinemas. Loud pops remind him of gunshots.
Like some other survivors, Mr. Lascoux plans to attend Thursday’s commemorations.
“What made the November 13 attacks unique was that everyone was a potential victim,” historian Denis Peschanski said.
“Either they were old enough to be there, or, like me, they were old enough to have children who could have been there, even though I was lucky they weren’t.”
‘LIFE GOES ON’
Catherine Bertrand, a survivor of the Bataclan attack, and vice-president of a victims’ association, said: “We all agree that it has marked us forever. We are all deeply traumatized by that evening, and our thoughts of course turn to the victims and their loved ones.”
She stressed that life must go on, though, saying: “There are concerts at the Bataclan, life goes on, we meet up between friends” at the places where the attacks took place.
Ten years on, the threat of such attacks in France is different. Militant jihadist groups such as Islamic State no longer have the same means to coordinate attacks on French soil, security sources say.
But the group’s online propaganda is still effective and able to radicalize youngsters fascinated with violence on social media. Anti-terrorism prosecutors this week launched a probe into the former partner of the presumed sole surviving perpetrator of the attacks.— Reuters
US House takes step toward ending longest government shutdown in history
WASHINGTON — The House of Representatives took a procedural step toward ending the longest government shutdown in US history on Wednesday, advancing a stopgap funding package to restart disrupted food assistance, pay hundreds of thousands of federal workers and revive a hobbled air-traffic control system.
The Republican-controlled chamber voted 213-209 to move towards a final vote on the measure, with President Donald Trump’s support largely keeping his party together in the face of vehement opposition from House Democrats, who are angry that a long standoff launched by their Senate colleagues failed to secure a deal to extend federal health insurance subsidies.
Eight Senate Democrats on Monday broke with party leadership to pass the funding package, which would extend funding through January 30, leaving the federal government on a path to keep adding about $1.8 trillion a year to its $38 trillion in debt.
“I feel like I just lived a Seinfeld episode. We just spent 40 days and I still don’t know what the plotline was,” said Republican Representative David Schweikert of Arizona, referring to a popular 1990s US sitcom.
“I really thought this would be like 48 hours: people will have their piece, they’ll get a moment to have a temper tantrum, and we’ll get back to work.”
He added: “What’s happened now when rage is policy?”
House Democrats remain adamantly opposed, angered by the Senate deal that came less than a week after Democrats won high-profile elections in New Jersey, Virginia and New York City that many thought strengthened their odds of winning an extension of health insurance subsidies. While the deal sets up a December vote on those subsidies in the Senate, Speaker Mike Johnson has made no such promise in the House.
Democratic Representative Mikie Sherrill, who last week was elected as New Jersey’s next governor, spoke against the funding bill in her last speech on the US House floor before resigning from Congress next week, encouraging her colleagues to stand up to Mr. Trump’s administration.
“To my colleagues: do not let this body become a ceremonial red stamp from an administration that takes food away from children and rips away healthcare,” Ms. Sherrill said.
“To the country: stand strong. As we say in the Navy, don’t give up the ship.”
NO CLEAR WINNER FROM SHUTDOWN
Despite the recriminations, neither party appears to have won a clear victory. A Reuters/Ipsos poll released on Wednesday found that 50% of Americans blamed Republicans, while 47% blamed Democrats.
A final vote on passage is expected later on Wednesday. If approved by the House, the funding package would have to be signed into law by Mr. Trump. The White House said he supports the bill.
The vote came on the Republican-controlled House’s first day in session since mid-September, a long recess intended to put pressure on Democrats in the shutdown standoff. The chamber’s return also set the clock ticking on a vote to release all unclassified records related to the late convicted sex offender Jeffrey Epstein, something Mr. Johnson and Mr. Trump have resisted up to now.
Mr. Johnson on Wednesday swore in Democrat Adelita Grijalva, who won a September special election to fill the Arizona seat of her late father, Raul Grijalva. She provided the final signature needed for a petition to force a House vote on the issue, hours after House Democrats released a new batch of Epstein documents.
That means that after performing its constitutionally mandated duty of keeping the government funded, the House could once again be consumed by a probe into Mr. Trump’s former friend whose life and 2019 death in prison have spawned countless conspiracy theories.
The funding package would allow eight Republican senators to seek hundreds of thousands of dollars in damages for alleged privacy violations stemming from the federal investigation of the January 6, 2021, attack on the US Capitol by Mr. Trump’s supporters.
It retroactively makes it illegal in most cases to obtain a senator’s phone data without disclosure and allows those whose records were obtained to sue the Justice Department for $500,000 in damages, along with attorneys’ fees and other costs. — Reuters
Marcos appoints Charlito Mendoza as new BIR chief; Lumagui out
President Ferdinand R. Marcos, Jr. appointed Finance Undersecretary Charlito Martin R. Mendoza as the new Bureau of Internal Revenue (BIR) Commissioner, replacing Romeo D. Lumagui, Jr.
In a Viber chat to reporters, acting Press Secretary Dave M. Gomez confirmed the change within the agency but did not elaborate further.
Mr. Mendoza’s appointment was signed on Wednesday.
He used to head the Finance Department’s Revenue Operations Group, working closely with the BIR and the Bureau of Customs (BoC).
Mr. Lumagui was a BIR deputy commissioner when the President’s term started in 2022, but was promoted as BIR chief in November 2022 or four months after Mr. Marcos took his seat.
The new BIR chief’s appointment comes as Mr. Lumagui earlier said it may fall short of its P3.219-trillion collection target for 2025 due to several emerging headwinds.
“The overall performance is low… so there’s a need to recalibrate or recalculate the entire goal,” BIR Commissioner Romeo D. Lumagui, Jr. told BusinessWorld in an interview in mixed English and Filipino on Nov. 11. “As things stand, it’s going to be quite difficult.”
The latest Treasury data showed that BIR collections jumped by 10.88% to P2.32 trillion in the first nine months of the year. However, this was 2.63% lower than the programmed P2.38 trillion for the January-to-September period.
The BIR, the main revenue collection agency, needs to collect around P897 billion to reach the P3.219-trillion full-year program. — Chloe Mari A. Hufana
Peso slumps to new all-time low
By Aaron Michael C. Sy, Reporter
THE PESO fell to a new all-time low against the dollar on Wednesday as the dollar was buoyed by hopes of the US government reopening, while the local unit was dragged by expectations of slower growth.
The local unit closed at P59.17 versus the greenback, sliding by 18.5 centavos from its P58.985 finish on Tuesday, Bankers Association of the Philippines data showed.
This surpassed the previous record of P59.13 against the US dollar on Oct. 28.
Year to date, the peso has depreciated by P1.325 or 2.24% from its P57.845 finish on Dec. 27, 2024.
The peso opened Wednesday’s session slightly stronger at P58.95 versus the dollar. It logged an intraday best of P58.91, while its worst showing was at P59.19 against the greenback.
Dollars exchanged rose to $1.72 billion on Wednesday from $1.47 billion on Tuesday.
The dollar was generally stronger on Wednesday amid market optimism on the possible end of the US government shutdown, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“The peso weakened further after the US Senate successfully endorsed a temporary spending bill which will fund the US government until Jan. 30, 2026,” a trader said in a Viber message.
The US House of Representatives was scheduled on Wednesday to vote on a funding plan for government agencies to end the longest shutdown in US history, following the Senate’s approval of a compromise on Monday.
Dollar demand was also supported by expectations that the US Federal Reserve will keep rates higher for longer, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message
The Fed last month cut rates by 25 basis points (bps) to bring its target rate to the 3.75%-4% range.
However, expectations of a rate cut at the Fed’s Dec. 17-18 meeting have dwindled after Fed Chair Jerome H. Powell questioned its necessity, while other officials remained divided over its last policy decision for the year.
“The combination of sluggish exports, slower government spending, and declining foreign direct investments (FDI) has reduced foreign currency supply just as import needs remain high,” Mr. Rivera added.
The local unit was also dragged by weak sentiment as damage from recent typhoons could further weaken economic activity, another trader said by telephone.
“Locally, market confidence is also being tested by governance issues and slower growth, which makes investors more cautious,” Mr. Rivera added.
In the third quarter, the Philippine economy grew by 4%, its slowest pace in over four years amid a slowdown in household and government spending. This as a widening flood control scandal dampened investor and consumer sentiment.
In the nine months to September, GDP growth averaged 5%, putting the government’s 5.5%-6.5% full-year growth target further out of reach.
Mr. Rivera said the peso could remain within the P59 to P60 per dollar range unless stronger dollar inflows are seen from remittances, tourism, or exports.
“In the coming months, stabilization will depend on faster fiscal disbursements, stronger FDI signals, and clear policy actions that restore both investor and market confidence,” he said.
The first trader said the peso could depreciate further on Thursday if the US government shutdown is resolved.
The first trader sees the peso moving between P59 and P59.25 per dollar, while the second trader sees it ranging from P59 to P59.30 on Thursday.
Mr. Ricafort sees the local unit trading between P59.05 and P59.25 on Thursday.
Philippines may take 70 years to catch up with Singapore
The Philippine economy is at risk of further falling behind its Southeast Asian neighbors, an economist said, noting it may take two years to catch up with Vietnam and up to 70 years to catch up with Singapore.
“(T)he Philippines could find itself lagging behind if alleged public spending issues continue to divert attention and resources away from the structural reforms needed to accelerate economic development,” Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said in a commentary on Wednesday.
In the third quarter, Philippine gross domestic product (GDP) grew by 4%, its slowest pace in over four years amid slower household and public infrastructure spending as the flood control scandal dampened investor and con-sumer sentiment.
In the nine months to September, GDP growth averaged 5%, putting the government’s 5.5%-6.5% full-year growth target further out of reach.
“The Philippine economy is growing, but not enough to close the economic gap with other countries,” Mr. Neri said.
He noted the Philippine GDP per capita is lower compared with other economies in the region. Citing International Monetary Fund (IMF) data, he said the Philippines’ GDP per capita stood at $4,078 in 2024.
“At the current growth rate, it would take the Philippines two years to catch up with the GDP per capita of Vietnam, 4 years with Indonesia, 14 years with Thailand, 26 years with Malaysia, and 70 years with Singapore, assuming their incomes remain stagnant. In reality, their GDP per capita continues to grow, which means the gap could persist or even widen,” Mr. Neri said.
The Philippines lagged behind Singapore which had a GDP per capita of $90,674 in 2024, followed by South Korea ($36,128), Japan ($32,498), China ($13,312), Malaysia ($12,540), Thailand ($7,491), Indonesia ($4,958) and Vietnam ($4,535).
“Before the pandemic, the Philippines had a higher GDP per capita than Vietnam, but has since been overtaken. At current trends, it would take the Philippines two years to catch up with Vietnam, but that gap could increase to 13 years by 2044,” Mr. Neri said.
The BPI economist said the Philippines needs structural reforms to accelerate growth in order to close the widening gap with its neighbors.
“The current economic model of the country is not enough, as shown by the country’s inability to grow faster than 6% in recent years,” he said.
Mr. Neri said the economy has been “too reliant” on consumer spending, driven by overseas Filipino worker (OFW) remittances and the business process outsourcing industry.
“There is a need to diversify its sources of growth. The economy must improve in terms of production, especially in agriculture and manufacturing, as they will allow the economy to be more self-sufficient and to reach foreign markets. These industries have been critical to Vietnam’s success and could play a similar role for the Philippines,” he said.
However, Mr. Neri said implementing these reforms will be hard if the government lacks focus.
“Public spending issues divert fiscal resources and policymaking focus away from long-term development priorities. Efforts to strengthen safeguards against potential issues in government spending are essential, enabling the country to work on structural reforms that could improve the economy,” he said.
Mr. Neri said the Philippines will likely depend on monetary policy to sustain economic growth, with the Bangko Sentral ng Pilipinas (BSP) expected to continue rate cuts until mid-2026.
“Excessive rate cuts could lead to an overshoot, as monetary policy might be used disproportionately to compensate for weaker growth performance,” he said.
“While inflation is expected to remain manageable in the coming months, there is a significant chance it will move higher in 2026 as favorable base effects from rice prices fade. If the BSP cuts its rates too much and inflationary pressures suddenly rise, the central bank could be forced to reverse course abruptly, hiking rates faster than the ideal pace,” Mr. Neri added.
In October, the BSP trimmed the key policy rate by 25 basis points (bps) to a three-year low of 4.75%, citing benign inflation and downbeat business sentiment amid the flood control mess. It has now slashed borrowing costs by a total of 175 bps since it began its easing cycle in August 2024.
BSP Governor Eli M. Remolona, Jr. has also hinted at potentially two more 25-bp cuts at the Monetary Board’s last meeting this year on Dec. 11 and by early next year to support the economy.
MORE DOVISH?
Meanwhile, the BSP could deliver more interest rate cuts than expected as fiscal tightening due to the flood control scandal dampened economic growth, Nomura Global Markets Research said.
In its latest Global Economic Outlook Monthly, Nomura said the substantial impact of the graft scandal could prompt the BSP to lower borrowing costs by over 50 bps until next year.
“The inadvertent fiscal tightening due to the ongoing corruption controversy is substantial, hurting short-run growth prospects materially and keeping BSP dovish for longer,” Nomura research analysts Euben Paracuelles and Yiru Chen said.
They noted that a sharper global growth slowdown and a slower resolution of the corruption controversy pose downside risks to growth.
GlobalSource Partners Country Analyst Diwa C. Guinigundo said the latest growth print and stable inflation should support the monetary authorities’ dovish stance.
“This clear growth deceleration, coupled with steady headline inflation at 1.7% in both September and October, strengthens the case for the Bangko Sentral ng Pilipinas to sustain a monetary accommodation stance through late 2025 and possibly into early 2026,” Mr. Guinigundo said in a note dated Nov. 11.
Headline inflation steadied month on month at 1.7% in October, but eased from 2.3% a year ago. This brought the 10-month inflation to average 1.7%, matching the BSP’s full-year forecast.
“Seasonal holiday spending and remittance-driven demand could nudge prices up, but any uptick may be tempered by available monetary policy space — possibly leaving room for another rate cut,” Mr. Guinigundo said.
However, Nomura said emerging risks could push the BSP to reduce interest rates more than it has indicated.
“BSP sounded more dovish and signaled that it sees scope for a more accommodative stance, citing the need to support domestic demand after the corruption scandal was exposed,” Mr. Paracuelles and Ms. Chen said.
Meanwhile, Mr. Guinigundo said growing political instability, weak stock market and peso, as well as declining foreign investments complicate the BSP’s policy path.
Mr. Guinigundo noted that “premature or excessive” monetary policy easing could lead to capital outflows and further weaken the local currency.
“In this environment, a measured pause in policy rates could send a constructive signal — that the BSP remains data-driven, vigilant, and risk-conscious, choosing to balance growth support with the need to preserve macroeconomic credibility and market confidence,” he added. — KKC
Malls still ‘healthy’ despite slowing consumer spending
PHILIPPINE malls’ occupancy levels are still “healthy” despite slowing consumer spending, according to real estate consultancy firm Colliers Philippines.
“Despite slower personal consumption expenditure in 9M (first nine months of) 2025, malls across Metro Manila continue to record healthy occupancy levels,” Colliers said in its Third-Quarter Retail Market Report.
The vacancy rate of malls in Metro Manila stood at 11.4% as of the third quarter, the lowest since the 9.7% recorded in the first quarter of 2020, according to Colliers data.
“We recorded significant take-up from recently completed malls including GH Mall, Gateway Mall 2 and the SM Mall of Asia Expansion,” it said.
Colliers said it is maintaining its forecast that malls’ vacancy rate will likely return to pre-pandemic levels by the end of 2026.
“The Philippine retail scene continues to innovate, effectively exciting mallgoers and foreign brands. With retail spaces becoming more experiential, more Filipinos now go to brick-and-mortar malls and are enticed to stay longer and spend more,” Colliers Philippines Director and Head of Research Joey Roi H. Bondoc said in the report.
Colliers projects mall vacancy in Metro Manila to fall to 9.5% by the third quarter of 2026. By the first quarter of 2027, it expects vacancy rate to ease to 8.2%, surpassing the 9.3% vacancy rate posted in the third quarter of 2019.
Easing inflation and policy rate cuts should support faster consumer spending in malls.
“In our view, the lower-than-expected inflation, holiday-induced spending, slightly improving consumer outlook, and the projected rise in remittances should support retail demand growth,” Colliers said.
Third-quarter gross domestic product (GDP) grew by 4%, its weakest pace in over four years amid muted household and public infrastructure spending. This as a widening flood control scandal dampened investor and consumer sentiment.
In the third quarter, household final consumption expenditure, which accounts for over 70% of the economy, grew by a slower 4.1% from 5.3% in the second quarter. This brought the nine-month average to 4.9%.
“With the holiday season fast approaching, Colliers believes that mall operators and retailers should continue to work with each other to capture holiday-induced spending,” Mr. Bondoc said.
Mr. Bondoc said mall operators and developers should further improve their omnichannel shopping experience, with more customers expected to combine online and offline holiday shopping.
“With retail vacancy nearing and consumer traffic exceeding pre-pandemic levels, we believe that brick-and-mortar stores are far from obsolete — proving that physical stores remain essential to Filipino shopping habits,” Colliers said.
It also cited the growing demand for “experiential” retail and new concepts like sip-and-shop, which would increase take-up in brick-and-mortar spaces.
“A sustained retail space absorption is essential in ensuring that Metro Manila’s mall vacancy reverts to pre-pandemic level by the end of 2026,” Colliers said.
Colliers noted that the country’s biggest mall operators have invested in upgrading their existing malls to cater to growing consumer preference.
For instance, Ayala Land, Inc. allocated P17.5 billion for its mall renovation program, while SM Supermalls earmarked P150 billion for redevelopments and new malls.
In the first nine months of the year, new retail space in Metro Manila tripled by 204.95% to 265,000 square meters (sq.m.) from 86,900 sq.m. completed last year.
Key retailers that opened during the nine-month period include Anko and IKEA in Trinoma, Pomelo and JD Sports in Glorietta, Muji in Festival Mall, KKV in Lucky Chinatown Mall, Nitori in Eastwood Mall, Zara in Alabang Town Center, Crate & Barrel in Podium Mall, and Funko and Coach in SM Mall of Asia.
Malls’ take-up is expected to reach 502,000 sq.m. by end-2025, Colliers said, driven by foreign retailers occupying wider spaces, demand from food & beverage and fast fashion brands, and the rising popularity of “experiential” retail.
From 2026 to 2028, Colliers expects 111,000 sq.m. of retail space to be completed annually.
Among those slated for completion during the period include Ayala Malls Parklinks, Ayala Malls Arca South, SM Harrison Plaza, Filinvest Mall Cubao, and the SM Megamall redevelopment. — Beatriz Marie D. Cruz
Dinner at the top
By Joseph L. Garcia, Senior Reporter
IT’S not every day that one gets to have dinner at the top of the highest building in the city right now (the Metrobank Center where the Grand Hyatt Manila is housed in at 318 meters, with more than 60 stories). A progressive dinner on Oct. 23 took us to The Peak, the Grand Hyatt’s top-floor bar and restaurant, but with a few extras.
For one thing, we didn’t dine with the rest of The Peak’s patrons, we were taken to its biggest private room, The Speakeasy. Seating between 16 to 30 guests, it is luxurious, with wood paneling, a marble-topped table, and, of course, a view of the city. The private rooms vary in size, with one seating 10, and another seating 15. The 10-seater room, called the Whisky Room, happens to have a collection of whiskies from around the world. Engaging the rooms cost between P50,000 to P100,000, all consumable.
The dinner provided a way for us to meet Gregor Streun, Grand Hyatt Manila’s new executive chef. Hailing from Buchen Odenwald, Germany, Mr. Streun’s journey began at Hotelfachschule Heidelberg, where he earned a Bachelor’s de-gree in Professional Cookery and Kitchen Management, complemented by a German Culinary Degree. His path took him to esteemed kitchens in Germany and Switzerland before embarking on a dynamic career with Hyatt, including lead-ership roles at the Park Hyatt Shanghai, Andaz Tokyo, the Grand Hyatt Singapore, and, most recently, as Executive Chef at Carlyle & Co., Hong Kong.
Mr. Streun unveiled a menu of new à la carte creations, to be found in the future at the dining outlets at The Grand Hyatt, which include The Grand Kitchen, The Peak Grill, Le Petit Chef, Pool House, and No. 8 China House.
The dinner opened with a series of appetizers served with Cloudy Bay Sauvignon Blanc: Italian burrata with spiced tomato sugo and basil; Taramasalata with salmon roe, grilled sourdough, and dill; Tasmanian salmon with sour cream, green apple and lemon; and a Grilled broccolini and endive salad with smoked duck breast, spiced tamarind dressing, charred grapes, and hazelnut.
The salmon on our plate took on the eternal preppy colors of pink and green and looked very attractive. It was quite delightfully juicy, though the next course, the Taramasalata, was too heavy for us and could use a little levity. The broccolini and endive salad provided a nice contrast.
Next came an oven-roasted Patagonian toothfish with raisin and almond mole. It had an excellent texture, while the mole sauce was strangely familiar (taking on the notes of our local adobo). Despite its Mexican origin, Mr. Streun tweaked it here and there (using almonds and plantains, for example) resulting in something sexily gritty, with a nice charred edge. The wine pairing, which tasted quite peachy, gave some sophistication to the dish.
The main course was a surf-and-turf platter featuring grain-fed Mulwarra bone-in striploin, Mulwarra grass-fed ribeye, and Australian rock lobster, complemented by Terrazas Reserve Malbec. The mains were complemented by The Peak’s signature dirty fries, seasonal vegetables, and a trio of sauces including beef jus, béarnaise, and chimichurri. The lobster had an enjoyable fluffy texture, but the beef! Well, appropriately heavy but given some zing with the sauces, we were satisfied that evening. Mr. Streun even took the time to explain to us the difference between grass-fed and grain-fed cuts (the grain-fed one would be fattier, lending better texture; the grass-fed one was leaner, but to us had a stronger, more pronounced flavor).
We were bidden to rise for the final course, dessert, served by Le Petit Chef himself at the Veranda. The Grand Dessert featured strawberry shortcake, Italian meringue, red fruit coulis, chocolate pearls, and fresh strawberries, all in the shape of a fly agaric. We were provided with a large syringe of cream, a torch for caramelizing, and extra chocolate pearls.
Mr. Streun talked about his palate with BusinessWorld, evident for example in his appetizers and the fish: “Very Germanic, or French-based. Obviously, living 15 years in Asia, a lot of influences.”
He began working in Manila just six months ago. “I think Manila has such a vibrant dining scene, that I think we can do a lot better,” he said, hence he’s introducing these new dishes at The Peak Grill and their other dining out-lets.
MPIC’s plan to exit LRT-1 seen raising questions on PPP rail
METRO PACIFIC Investments Corp.’s (MPIC) plan to divest its stake in Light Rail Manila Corp. (LRMC), the operator of Light Rail Transit Line 1 (LRT-1), could test investor confidence in public-private partnerships (PPPs) for mass transit, as it highlights the challenges private operators face under the current fare and regulatory framework, analysts said.
“MPIC’s exit could raise questions about the long-term viability of private investment in mass transit unless fare and regulatory frameworks are recalibrated to ensure commercial sustainability,” Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message.
MPIC said it is considering divesting its 35.8% stake in LRMC due to continued losses, with ridership yet to recover from the pandemic impact.
In the first quarter of 2023, MPIC reported that LRMC generated revenues of P595 million, a 73% increase year on year, but the operator still recorded a core net loss of P83 million, albeit 53% lower than the same period the previous year.
“We are still losing on LRT-1, in part because of COVID. Ridership went down, obviously. We continue to lose money from LRT-1, and I think we are considering selling it and getting out of the light rail,” MPIC Chairman, President, and Chief Executive Officer Manuel V. Pangilinan said on Tuesday.
LRMC’s ridership has yet to fully recover, averaging around 450,000 daily passengers in 2019, dropping to 350,000-370,000 in 2023. By November 2024, just before the opening of the LRT-1 Cavite Extension Phase 1, daily ridership was 323,000. The first phase of the Cavite Extension was projected to add roughly 80,000 daily passengers, potentially bringing ridership back up to around 403,000.
“From a strategic standpoint, exiting the light rail business could enhance MPIC’s overall profitability and capital efficiency. Rail projects, while socially critical, are typically capital-intensive and politically sensitive, offering lower margins and longer investment horizons compared to tollways and utilities — areas where MPIC has built strong competitive advantages,” Mr. Arce said.
“Divestment would allow the conglomerate to redeploy capital into higher-yielding or faster-growing ventures such as renewable energy, logistics, and digital infrastructure, which align with its sustainability and diversification goals. Moreover, shedding a persistently loss-making unit could improve consolidated earnings visibility, strengthen the balance sheet, and provide flexibility for shareholder returns or new strategic investments,” he added.
“This will improve credit and bottom-line outlook,” said Cristina S. Ulang, head of research at First Metro Investment Corp., noting that the move reflects MPIC’s agility in exiting ventures that fail to meet return targets.
“It’s a logical business decision. I believe even Ayala might have provided for their co-investment. I believe the project is long delayed because of right-of-way issues which the government is supposed to take care of,” said Edu-ardo V. Francisco, president of BDO Capital.
MPIC previously said it was reconsidering plans to acquire Ayala Corp.’s stake in LRMC following unresolved valuation issues and, last year, explored acquiring Ayala’s shares after the latter announced its divestment plan. MPIC holds its 35.8% stake in LRMC through its unit Metro Pacific Light Rail Corp., while Sumitomo Corp. owns 19.2% and Macquarie Investments Holdings (Philippines) Pte. Ltd. holds 10%. LRMC is a joint-venture company of MPIC, AC Infrastructure Holdings Corp. (a unit of Ayala Corp.), Sumitomo, and Macquarie Investments Holdings.
LRMC assumed operations and maintenance of LRT-1 in September 2015 under a P65-billion, 32-year concession agreement with the Light Rail Transit Authority and the Department of Transportation. Under the agreement, the operator may seek a fare adjustment once every two years. In April, the Transportation department approved LRMC’s petition for fare adjustments, though the new fare matrix remains below the company’s requested rates, resulting in a fare deficit of P2.17 billion.
LRMC said it has made substantial operational improvements, including the completion of Phase 1 of the LRT-1 Cavite Extension last year. The second and third phases may begin next year if right-of-way issues are resolved.
“Still, given the company’s disciplined capital allocation philosophy and the pressing need to manage return on invested capital, a divestment from LRMC appears both logical and timely,” Mr. Arce said, noting that MPIC’s exit might have reputational and strategic implications, as the rail line is one of the country’s flagship PPP projects.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., along with Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of MediaQuest Holdings under the PLDT Beneficial Trust Fund, has a majority share in BusinessWorld through the Philippine Star Group. — A.E.O. Jose
Amber keeps it fresh after 20 years in HK to notch 3rd Michelin star
DUTCH-BORN CHEF Richard Ekkebus has helmed the upscale restaurant Amber since 2005, charting a journey spanning more than 20 years to reach three Michelin stars. After earning the first two in 2009, Ekkebus took the top honors in March, along with a “green” star the restaurant got in 2022. That raises the pressure to innovate in a competitive, high-end dining scene. Yet Amber, inside the Landmark Mandarin Oriental hotel (also home to fellow three-starred Sushi Shikon), rises to the challenge by evolving with the seasons.
Fresh produce steals the show, especially after Ekkebus completely eliminated dairy and gluten from his dishes several years ago. The result is an offering that lets unique ingredients shine, like the Tasmanian pepper berry against a duck foie gras. Other surprises include the ishigakidai, a fish rarely found on menus. Also known as a spotted knifejaw, it’s typically available only in the summer and fall.
If a French restaurant found a way to do without dairy — for example by using cashew butter that’s just as indulgent as the original — you can trust it to accommodate dietary needs and preferences. Amber offers a vegetarian menu that can be adapted for vegans, something it proudly advertises. This quality and attention to detail come with a big price tag, though, as one would expect. For dinner, six courses start at HK$2,058 while the eight-course experience comes in at HK$2,888 and includes a kitchen tour. Lunch can be a more wallet-friendly option, with three courses starting at HK$928 on weekdays.
When we visited on a Wednesday evening, our bill for three came to HK$10,657, including service. We opted for the base menu with several upgrades and a glass of wine each. If you choose to go big for a special occasion, you can count on Amber to deliver something fresh. It’s comfortable in its identity but hardly complacent, perhaps the secret sauce to its staying power. The vibe: It’s modern and elegant, with the interior by New York-based designer Adam D. Tihany. The tables are spread out with seemingly more staff than diners, plus private spaces that can accommodate up to eight guests.
Who’s next to you: On the night we were there, it was predominately couples. Many appeared to be celebrating special occasions.
Can you conduct a meeting here? It depends on your comfort level. The restaurant is in a narrow space with most diners in the main room seated side-by-side instead of opposite each other. The two private rooms have a more stand-ard table-and-chair setup.
What we’d order again: Amber’s signature Aka uni with cauliflower mousse, lobster, and caviar, an add-on for HK$498. It’s remained on the menu for years, and rightfully so. The pork rib — of the Basque country’s Kintoa breed — proved exceptional, though the accompanying matsutake cooked en cocotte in fig leaf stole the spotlight. You may be tempted to add the Ouka wagyu at HK$750, but the pork delivers without the premium. It’s a rich enough meal as is. Need to know: Amber is located on the 7th floor of Landmark Mandarin Oriental hotel in Central. It is open for lunch from noon to 4 p.m. and for dinner from 6 p.m. to midnight. Reservations can be made online. — Bloomberg
PNB looks to raise at least P3B from dual-tenor bond offering
PHILIPPINE NATIONAL Bank (PNB) targets to raise at least P3 billion from an offering of dual-tenor sustainability bonds.
The bank will launch an offering of three-year and five-year fixed-rate sustainability bonds on Nov. 26 with an option to upsize, it said in a disclosure to the stock exchange on Wednesday.
The public offer period is set to run until Dec. 2, with the bonds scheduled to be issued and listed on the Philippine Dealing and Exchange Corp. on Dec. 11, subject to final management determination, market conditions, and other factors.
The offer will mark the first issuance under PNB’s P50-billion bond and commercial paper program approved earlier this year.
The bank intends to issue the notes as sustainability bonds in line with the ASEAN Sustainability Bond Standards, subject to application with and confirmation from the Securities and Exchange Commission on the use of the label.
Proceeds from the issue will help support PNB’s growth and to finance or refinance eligible assets under its Sustainability Financing Framework.
“This bond issuance reflects PNB’s commitment to responsible banking and sustainable growth. By channeling funds toward eligible green and social projects under our Sustainability Financing Framework, we aim to create long-term value for our stakeholders while contributing to the country’s sustainable development goals,” PNB President and Chief Executive Officer Edwin R. Bautista said.
“This offering also underscores our confidence in the market and our readiness to support the evolving needs of our customers and communities.”
The bank has tapped its investment banking arm PNB Capital and Investment Corp., ING Bank N.V. Manila Branch, and Standard Chartered Bank as the joint lead arrangers and bookrunners for the transaction. PNB, ING Bank and Standard Chartered will be the selling agents for the offering.
PNB saw its net income rise by 25.79% to P6 billion in the third quarter from P4.77 billion, backed by higher revenues. This brought its nine-month profit to P18.51 billion, up by 22.91% from P15.06 billion a year prior.
The bank’s shares went down by 10 centavos or 0.2% to close at P51.15 each on Wednesday. — A.M.C. Sy
SMIC nine-month profit rises to P64.4 billion, led by banks
SY-LED SM Investments Corp. (SMIC) posted a 6% increase in nine-month consolidated net income, driven largely by its banking business.
For the January-to-September period, SMIC’s net income rose to P64.4 billion from P60.9 billion a year earlier, with banking contributing 50% of total earnings, followed by property at 28%, retail at 15%, and portfolio investments at 7%, the company said in a press release on Wednesday.
“The third quarter performance remained within our expectations. Despite the challenges brought about by adverse weather and flooding, we continued to see resilient financial performance across our businesses,” SM Investments Corp. President and Chief Executive Officer Frederic C. DyBuncio said.
“While external factors may temper overall economic growth, we maintain an optimistic outlook as we move into the fourth quarter.”
SMIC’s consolidated revenues for the nine months climbed 4% to P482.3 billion from P462.5 billion in the same period last year. Total assets grew 4% to P1.8 trillion, with a conservative gearing ratio of 31% net debt to 69% equity.
The company’s banking units were key drivers of growth.
BDO Unibank, Inc. earned P63.1 billion in net income, up from P60.6 billion, supported by stable performance in core segments. Net interest income rose 8%, customer loans increased 14% to P3.5 trillion, and deposits grew 10%, with a current account/savings account (CASA) ratio of 67%.
China Banking Corp. posted net income of P20.2 billion, a 10% increase from 2024.
SMIC’s retail arm, SM Retail, Inc., saw nine-month net income decline 4.69% to P12.2 billion from P12.8 billion, even as revenues rose 5% to P318.1 billion.
“The earlier school opening in June this year pushed some spending from the third to the second quarter. Despite this shift, specialty retail spending grew in the health and beauty, fashion and kids categories while essential spending continued to prop up growth for food retail,” Mr. DyBuncio said.
Same-store sales for department store and specialty retail operations rose 3% and 4%, respectively, while department store revenues in fashion and kids segments grew 3% and food retail revenues increased 7%.
Property unit SM Prime Holdings, Inc. posted a 10% increase in nine-month net income to P37.2 billion from P33.9 billion, with revenues up 4% to P103.4 billion. Malls accounted for 59% of revenues, posting 7% growth to P61 billion due to additional tenants and expanded leasable space. SM Prime’s third-quarter net income rose 8% to P12.8 billion from P11.8 billion, lifted by contributions from its mall and hotel and convention center businesses.
Portfolio investments were led by Philippine Geothermal Production Company, Inc., contributing 30% of total portfolio income, followed by NEO Ltd. at 26% and 2GO Group, Inc. at 12%. 2GO’s revenues rose 6% and net income jumped 65%, supported by strong performance in its travel and logistics businesses, SMIC said.
Shares of SMIC closed at P701 apiece on Wednesday, up P1, or 0.14%. — Alexandria Grace C. Magno