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Gokongwei’s JG Summit buys more shares in PLDT

JG SUMMIT Holdings, Inc. has acquired a bigger stake in PLDT, Inc. to give it at least a 10th of the shares in the telecommunications services provider, the Gokongwei-led firm told the stock exchange on Tuesday.

“As a result of such acquisition, the shareholdings of JGS (the holding firm’s stock symbol) in PLDT, Inc. will be 11.23%,” it said.

The holding firm placed the total price of the acquired shares at around $138.83 million, which it paid in full. The common shares, amounting to 7,046,979, were priced at $19.70 apiece or about P1,003 each through the purchase and conversion of 7,046,979 American Depositary Receipts (ADRs) of PLDT.

The company considers the shares as a “valuable investment” given the service provider’s good history of paying dividends. The shares account for 3.26% of the total outstanding shares of PLDT. The deal took place on Jan. 6, 2020.

“The acquisition of the common shares of PLDT will not have any adverse effect on the financial condition of JG Summit,” it noted.

PLDT is one of the country’s telecommunications service provider through its three business categories, namely: wireless services through the brands Smart, TNT, and Sun Cellular; fixed line named under PLDT Home; and PLDT Enterprise, and others.

PLDT previously said that it would increase its capital expenditure for 2020 from P78.4 billion this year as it continues to expand its network infrastructure through fifth-generation (5G) network, which will be launched early this year.

A big portion of the capex will be used by the company to fund the continuous rollout of its 5G technology.

In the first nine months of 2019, the company reported a 2% decline in its attributable net income to P6 billion due to higher expenses and lower gains from Rocket Internet sales. For the third quarter, attributable net income fell 16% to P3.79 billion due to lower earnings from its fixed-line and other businesses.

JG Summit reported 50% increase in its attributable net income as of September 2019 to P22.23 billion due to double-digit growth in its airline business Cebu Air, Inc. and real estate arm Robinsons Land Corp. backed by foreign exchange translation gains and higher equity in net earnings of associates, specifically from United Industrial Corp. Ltd.

However, a 2.4% drop was reported in its attributable net income in the third quarter last year to P4.8 billion due to lower revenues from its petrochemicals business and higher expenses.

Shares in JG summit fell a centavo or 0.12% to close at P81.80 apiece at the stock exchange on Tuesday.

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

Singapore digital banking race heats up with 21 license bidders

SINGAPORE — Singapore has drawn huge interest from technology firms looking to shake up the city-state’s banking landscape, attracting 21 applications for five digital bank licenses on offer.

Among firms that have publicly said they are bidding are Alibaba Group affiliate Ant Financial, a joint venture between Singapore Telecommunications Ltd. and Southeast Asian ride-hailer Grab, and a consortium led by gaming firm Razer.

Singapore-based internet firm Sea Ltd. as well as a consortium led by Hong Kong financial services group AMTD Group have also applied.

Singapore’s banking liberalization is its biggest in two decades and follows similar moves in Hong Kong, which issued eight online banking licenses last year.

The Monetary Authority of Singapore (MAS) said it received strong interest from a diverse group of applicants but did not name them.

Seven bidders are for retail banks and the rest are for wholesale banks.

“These include e-commerce firms, technology and telecommunications companies, FinTechs (such as crowd-funding platforms and payment services providers) and financial institutions,” the MAS said on Tuesday. The majority of applications were from consortiums.

The online-only banks are expected to operate at lower costs and offer services that differ from local incumbents such as DBS Group and OCBC.

Firms have joined forces to combine banking and technology expertise and meet local licensing requirements, which are generally stricter than other markets such as Hong Kong. Retail bank license holders, for example, will need S$1.5 billion ($1.1 billion) in paid-up capital.

Some contenders hope deep customer data combined with new technology will help them win customers in Singapore, which has over 150 deposit-taking institutions and about $2 trillion in total assets under management.

“One of the key motivations for seeking a Singapore digital bank license is that it is easier to demonstrate a proven track record and regional connectivity to other regulators in ASEAN where digital banks are going to be available in coming time,” said Varun Mittal, who heads the emerging markets fintech business at consultancy EY.

Singapore is issuing up to two retail and three wholesale bank licenses.

Accredited retail digital banks will be able to accept deposits from and offer services to both retail and non-retail customers, although they must be headquartered in Singapore and controlled by Singaporeans.

Wholesale banks will mostly serve small and medium enterprises and will not be subject to local control restrictions.

Singapore will announce the winners in June and digital banks are set to start operations in a phased manner from mid-2021. — Reuters

Grab Philippines seeks approval to revive motorcycle taxi service

RIDE-HAILING firm Grab Philippines is seeking to revive its motorcycle service, Grab Bike, to help provide “affordable and agile transport solutions” to commuters.

In a statement on Tuesday, it said it had submitted a letter of intent to the government’s interagency technical working group (TWG) on Dec. 9 last year.

“In light of the recent conversations around motorcycle taxis in the Philippines, Grab would like to reiterate its interest in participating in the motorcycle taxi space to help provide affordable and agile transport solutions to hundreds of thousands of Filipino commuters,” it said.

In its letter of intent addressed to TWG Chairman Antonio N. Gardiola, Jr., the company said: “May we respectfully request from your good office to allow Grab Philippines to participate in the pilot testing for motorcycle taxis.”

Grab Philippines noted that it operated Grab Bike in the country until the middle of 2016 “when the service was discontinued in compliance with the government regulations.”

The company said it was “seriously considering” to invest again in its Grab Bike service, which it described as the largest bike-ride hailing provider in Southeast Asia with 2.55 million bike rides and 1.49 million bike drivers last year.

“It boasts a 99.99% safety record which is one of the highest among Southeast Asia,” Grab Philippines said in its letter.

In a related development, the government’s TWG for motorcycle taxis warned on Tuesday that Angkas could be blacklisted for alleged violations of the guidelines it set.

The TWG has extended the implementation of the pilot program to March this year as it allowed two more players — JoyRide and Move It — to participate in the program. The original six-month pilot program had expired on Dec. 26.

The two companies will join Angkas in the extended pilot program starting on Dec. 23, 2019 up to March 23, 2020 with an overall cap of 39,000 registered bikers — or a limit of 10,000 bikers per transport network company (TNC) in Metro Manila and 3,000 bikers per TNC in Metro Cebu, the Land Transportation Franchising and Regulatory Board (LTFRB) announced in December last year.

Angkas bikers opposed the policy as 17,000 of them could lose their jobs. They asked the Mandaluyong City Regional Trial Court (RTC) to issue a temporary restraining order (TRO) against the policy.

On Monday, Mandaluyong City RTC Vice/Acting Executive Judge Ofelia L. Calo issued a TRO for 72 hours.

The court said the policy “puts a cap on the number of bikers that Angkas is entitled to” and enjoined the respondents “from performing any act that limits and impairs their rights to deal with and continue with their contracts with Angkas.”

In a televised news conference on Tuesday, Mr. Gardiola said the TWG had set guidelines, which include provisions for blacklisting.

He said it was “very possible” for Angkas to be blacklisted for violating provisions of the guidelines. He said LTFRB had confirmed reports that the motorcycle taxi is operating in Cagayan de Oro and in General Santos City. — Arjay L. Balinbin

Video mapping, a black box theater, archival performances…

“A POTTED plant in the middle of a corridor” is how Cultural Center of the Philippines (CCP) Vice-President and Artistic Director Chris B. Millado described the state of the 50-year-old institution, adding that the plant is “not for decor but to catch leaks from the ceiling.”

“The building is way past its prime,” Mr. Millado said, and that is why it has been undergoing a series of renovations since last year.

Aside from refurbishing its facilities, the CCP began its anniversary celebrations last year with events and projects such as the Sinag: Festival of Radiance, an anniversary gala concert, the launch of a commemorative stamp and a commemorative marker.

This year, the 50-year-old arts institution continues the celebration with more anniversary related projects and digital documentation.

GOING DIGITAL
One of its major projects is the launch the digital version of CCP Encyclopedia of Philippine Art in September (the physical encyclopedia was launched in November 2018). During a press conference in December, at the CCP, Mr. Millado noted that the information included in the physical copies end in 2015. The digital edition will allow for updating and documentation of information beyond 2015. It will be accessible in three forms: a subscription website, a mobile application, and a digital installation (touchscreen) at the CCP.

The digital edition will include images, audiovisual clips, and interactive features to enhance learning and engagement, content bookmarking, and reference citation.

“We are going to give this free to public schools and universities through their library system,” Mr. Millado said. He added that USBs of the digital version will be distributed to areas with less access to internet connectivity.

Aside from the digitized encyclopedia, there will be a digital time capsule which will be both a “physical and virtual structure” where guests can share their experiences and memories of art and culture at the CCP.

In August this year, a collection of rare digitized CCP performances from the CCP Library and Archives dating back to 1969 will also be made available online.

As a way to lengthen the shelf life of CCP’s live performances, shows will be recorded via high definition coverage. The recorded live shows will then be shown in commercial movie theaters nationwide. The first show in the pipeline is the one-act play from Virgin Labfest 14 titled Mga Eksena sa Buhay ng Kontrabida by Dustin Celestino which was recorded in three-camera setup.

ANNIVERSARY HIGHLIGHTS
This month, the University Theater Season kicks off with select university-based theater groups showcasing their productions of original Filipino works, adaptations of classics, and experimental work in various CCP venues. The lineup includes performances by Dulaang UP, Tanghalang Ateneo, the DLSU College of St. Benilde, and regional colleges and universities. The season leads up to the 13th International University Theater Association’s (IUTA) Congress and Festival in August.

In February, a brand new venue — the 300-seat Tanghalang Ignacio Gimenez (CCP Black Box Theater) — will be inaugurated.

From March 2 to 7, the CCP Jazz Festival will be held in Baguio City and feature local and international jazz performers. The festival includes concerts, fringe performances, pocket performances, master classes, and a musician’s market.

In May, the CCP will launch its first Arts and Social Media Festival, a one-day festival that “locates the dynamic and hyperactive role of social media with regards to arts and culture advocacy.” It will be held in various CCP venues. It aims to provide discussions on issues affecting social media and will feature panel discussions, workshops, performances, a watch party, a gadget market, and a specially commissioned Instagrammable artwork.

OTHER EVENTS
Other events this year include The Rainbow LGBTQI Arts: Festival of Arts and Ideas; Tanghalang Pilipino’s (TP) Batang Mujahideen and Lam-Ang, an Ethno-Epic Musical; Triple Threats I to III: The Leading Men of Philippine Musical Theater featuring Markki Stroem, David Ezra, and Arman Ferrer on separate dates; and the community-based theater organization Komedya ng Don Galo’s Senadala at Persyanus: Ang Bagong Mukha ng Moro. Selected shows are part of the 50 Free Shows and 50 Shows for P50 promotion (contact 832-1125; or e-mail contact_us@culturalcenter.gov.ph for details).

Upcoming art exhibitions include: 1986 People Power Revolution — The aftermath from Cultural Center of the Philippines to Sentrong Pangkultura ng Pilipinas: The Center in the Midst of Change; Valerio Nofuente and Emmanuel Sanchez Collections: The Banned Library Materials During the Martial Law Era; the launch of the CCP Print Folio: 20/30 I & II: A Limited Edition Print Portfolios in Celebration of the 50th Year Anniversary of CCP; and Cinemalaya Eye Fix.

Finally, a video mapping presentation, done in collaboration with Spinifex Group, a digital agency and production company based in Los Angeles with offices in New York and Sydney, will be mounted at the facade of the CCP in September as part of the celebration’s closing ceremonies. Spinifex’s previous projects include the opening ceremonies of the 2008 Beijing Olympic Games and Vancouver 2010 Winter Olympics.

For more information on these shows and others in the CCP 2020 calendar, visit https://systems.culturalcenter.gov.ph/ccp2020season/. — Michelle Anne P. Soliman

Peso may weaken anew on rate cuts, CA deficit

BSP
ANALYSTS said the peso may weaken later this year.

WHILE THE PESO could strengthen against the greenback in the short term on the back of the phase one deal between the US and China, it may weaken later in 2020 up to 2021 due to further monetary easing and the widening of the current account deficit, according to analysts.

For Fitch Solutions Macro Research, the peso, like other Asian currencies, will reap the benefits of risk-on sentiment from the upcoming phase one deal between Washington and Beijing.

“In the near term, unless geopolitical risks quickly flare up in the Middle East, optimism around a US-China trade deal and somewhat stabilizing global macroeconomic data should see some bids for risk assets,” the firm said in a note sent to reporters on Tuesday.

With this, Fitch Solutions said they see the peso averaging at P51.70 per dollar in 2020, better than its previous forecast of P53 a dollar.

The local unit closed at P50.635 on Dec. 27 — the last trading day of 2019 — rising P1.945 year on year from its P52.58 finish on Dec. 28, 2018.

The report also took note of the peso’s strong finish in 2019 relative to its performance in 2018. With this, Fitch Solutions expects “further appreciation will prove modest and be tapered somewhat by our forecast 25 bps (basis points) cut by the BSP in early 2020.”

Meanwhile, Mitsubishi UFJ Financial Group (MUFG) said in a note sent to reporters on Jan. 7 that the local unit is likely to be on a “bearish” trend after a recovery in 2019 on the back of a swing back to current account (CA) deficit in 2020.

“This is on expectations of the current account balance swinging back to a deficit, largely due to wider trade deficits driven in part by a surge in import of capital goods as the government ramps up infrastructure spending,” the report said.

The country’s current account was at a deficit of $992 million in the January to September 2019 period, narrowing by 83% from the $5.837-billion deficit in the same period the year prior.

The BSP expects a CA deficit of $5.6 billion for 2019 and $8.4 billion this year.

With this, MUFG’s analysts said they expect peso to range from as strong as P49.50 to as weak as P53.25 per dollar this year.

MUFG noted that the peso bounced back in 2019 as it saw annual gains of 3.4% against the dollar after a cumulative loss of 24% since 2013.

An analyst from The Hongkong and Shanghai Banking Corp. (HSBC) is also of the view that the peso will likely depreciate to as low as the P53-per-dollar level in 2020.

“On currency, expected policy rate and RRR (reserve requirement ratio) cuts by the BSP (Bangko Sentral ng Pilipinas) would reduce the relatively high carry buffer of the peso,” Cheuk Wan Fan, Chief Marketing Strategist for Asia at HSBC, told members of the media at a briefing in Taguig City on Tuesday.

Ms. Fan said the peso’s weakness will be due to the “loosening monetary and fiscal policy, fading foreign direct investment (FDI) inflows, and re-widening of the current account deficit.”

The BSP in 2019 cut key rates by 75 bps, reducing the yields on the overnight deposit, overnight reverse repurchase, and overnight lending facilities to 3.5%, four percent and 4.5%, respectively.

BSP Governor Benjamin E. Diokno has said the central bank is looking to slash benchmark rates by at least 50 bps this year to continue reversing the 175 bps worth of hikes implemented in 2018.

Meanwhile, lenders’ RRR has been cut by 400 bps last year, reducing reserve requirement for big banks to 14%, five percent for thrift banks, and three percent for rural lenders.

On the other hand, latest FDI data released by the BSP showed inflows slipped 2.9% year on year to $566 million in September from $582 million from the comparable year-ago period. This marked the seventh straight month of decrease in the country’s FDI flows. — L.W.T. Noble

BDO investment chief expects 13% stock surge this year despite existing risks

PHILIPPINE stocks will see a turnaround in 2020 as faster economic growth and central-bank easing will offset regulatory and geopolitical risks, according to the nation’s biggest money manager.

The Philippine Stock Exchange index (PSEi), among Asia’s laggards in 2019, could surge 13% this year, driven by banks and developers, according to Fritz Ocampo, BDO Unibank, Inc.’s chief investment officer. While that’s a great return, his forecast of 8,800 is still about 3% below the benchmark’s record in 2018. The gauge rose 0.2% to 7,816.37 at 2 p.m. in Manila Tuesday.

“The upside is pretty good for stocks,” said Mr. Ocampo, who helps manage P1.3 trillion in assets. “Philippine growth momentum is back on track. You have monetary and fiscal stimulus happening simultaneously. That hasn’t happened for a while.”

The nation’s equity benchmark bounced between about 7,500 and 8,400 last year amid slowing economic growth, the US.-China trade war and a rebalancing that cut the weighting of Philippine shares in global and regional indexes. A climb to bull territory in July faded as foreigners withdrew money from equity funds despite easing monetary policy and slowing inflation.

But 2020 should be better, Mr. Ocampo said. The fund manager sees the economy expanding 6.5% versus about 6% in 2019, with corporate earnings growing more than 12%. The government’s P4.1-trillion budget and potential cuts in policy rates and reserve requirements will be key to propelling the nation’s shares, he said.

Of course, there are risks. US-Iran tension is one — it could disrupt oil supply and keep Philippine inflation between 2% and 4%, according to Mr. Ocampo. Others include the government’s dispute with Manila’s water providers and delays in infrastructure projects, he said.

Even though the Philippine stock index is likely to post double-digit gains this year as economic growth quickens, Cheuk Wan Fan, HSBC Private Bank’s chief market strategist for Asia, is keeping a neutral stance. She recommends investing in stocks that will benefit from “resilient consumer spending and the strong rebound in fixed-asset investment.”

While the row between the government and Manila’s water utilities poses regulatory risks and “short-term headwinds,” it shouldn’t lead to “significant downside” since the Philippine stock market is very domestically driven, with the lowest level of foreign ownership in Asia, Ms. Fan added.

Mr. Ocampo favors banks and property stocks, including conglomerates exposed to both sectors, as financial easing boosts lenders’ margins, while stable interest rates will support real estate purchases. He said gains in banks and developers could overcome potential drags from regulatory risks. He is underweight consumer-related companies, as “stiff competition” will temper the sector’s earnings, he said.

“The catalysts are there for stocks to move higher,” Mr. Ocampo said. “The Philippines will be among the fastest growing economies in the world’s fastest growing region.” — Bloomberg

New art fair set for Feb.

TEN CONTEMPORARY art galleries come together for their first collaborative project, ALT Philippines 2020, on Feb. 14 to 16 at the SMX Convention Center Aura, SM Aura Premiere, BGC in Taguig City.

The collaborating galleries — 1335 Mabini, ArtInformal, Blanc, The Drawing Room, Finale Art File, Galleria Duemila, Mo_Space, Underground, Vinyl on Vinyl, and West Gallery — will be featuring over 150 mid-career and emerging contemporary artists at the art fair.

According to ALT Philippines 2020’s official website, “the project is a dynamic and immersive gathering and collaboration for meaningful engagement with its visitors, artists and professionals in the art community.”

“We wanted to create a good show. A show and the project coming from the context of galleries, artists, collaborators directly involved and directly collaborating in creating the project,” ALT Philippines project manager Nicole Decapia told BusinessWorld in a phone interview.

With the art show’s exploratory format, the collaborating galleries will highlight the character of their specific galleries through their artists and their preferred mediums.

Unlike a market stall setup, ALT Philippines — which will fill the 2,202-square meter SMX Convention Center (Halls 1 to 3) at SM Aura Premiere — will allow visitors to “enter each space and have a more intimate and immersive experience,” said ALT Philippines’ press relations manager Stephanie Frondoso, adding that the space will be laid out with a hive-like design.

Ms. Decapia noted the SMX Convention Center’s accessibility and proximity to commercial areas as among the reasons for choosing it as the venue. “The space is just right for 10 galleries and manageable.”

OTHER ACTIVITIES
Aside from exhibitions, ALT PH will also hold talks and tours as part of its program.

These will include interviews conducted by art writer and curator Tony Godfrey with participating artists, and a panel discussion led by curator Angel Velasco Shaw with art patrons.

Participants may also join Frame-by-Frame, a series of scheduled tours to each gallery during the three-day art fair.

According to the ALT Philippines website, the programs “allow us to pinpoint and critically discuss the concerns and needs of the art community and its sustainability. They educate audiences of every level on current artistic practice and arts management alongside developments in these respective fields.”

“We don’t intend it to be like an art fair with the same venue and format. We start with Alt Philippines and then something different,” Ms. Decapia said.

“Apart from the art world, and the usual crowd who comes to these events, we also wanted to encourage art appreciation and patronage at all levels. So, we’re having this project with the intention not just for someone who already knows about art, but to transform and have people who just by chance, come in and are curious to start and be included in the art community.”

As for future installments of the project, Ms. Frondoso noted that ALT Philippines will be mounted in various cities around the country at different months. “The show will not only be every February,” she said.

For more information, visit www.altphilippines.com. Tickets are now available at SM Tickets (www.smtickets.com/events/view/8784). General admission is priced at P250. Student rates are available on site (bring an ID). — MAPS

BDO to redeem Tier 2 notes due in 2025

BDO UNIBANK, Inc. is set to redeem the unsecured subordinated Tier 2 notes it issued in 2014 on March 10, ahead of their scheduled maturity in 2025.

In a disclosure to the local bourse Tuesday, the Sy-led bank said it will exercise its right to redeem Series 2014-1 unsecured subordinated notes, eligible as Tier 2 capital, which were initially due on 2025.

“Please be informed that BDO Unibank, Inc. shall be notifying the holders of the series 2014-1 unsecured subordinated notes eligible as Tier 2 capital due 2025…issued last 10 December 2014 of the exercise of its right to redeem on 10 March 2020 (the optional redemption date). The redemption of all the Tier 2 notes is pursuant to the terms and conditions of said notes,” BDO said in its statement on Tuesday.

The lender said all of the Tier 2 notes will be redeemed “for cash at a redemption price equal to the face value of the Tier 2 notes, plus accrued interest covering the accrued and unpaid interest as of but excluding 10 March 2020.”

The bank in 2014 offered up to P10 billion worth of unsecured subordinated notes, qualified as the Tier 2 capital.

The notes carry an annual interest rate of 5.1875% and has an initial maturity date of March 1, 2025.

In September last year, the bank raised P6.5 billion via its offer of five-and-a-half year long-term negotiable certificates of deposit (LTNCD), upsized from its initial target of P5 billion. The LTNCDs carry an interest rate of four percent per annum.

BDO saw its net income surge 43.35% to P11.967 billion in the third quarter last year on the back of higher recurring core revenues.

The bank’s shares remained unchanged at P155 apiece on Tuesday. — B.M. Laforga

Roxas and Co. sells Batangas property to boost its finances

ROXAS and Co., Inc. (RCI) has sold its key real estate assets in Batangas worth P282 million in line with its efforts to improve its net income for the year and to reduce its debt.

In a disclosure on Tuesday, the listed company said that it sold its 6.67-hectare Natipuan property in Nasugbu, Batangas and a 12.9-hectare ecotourism property along Tagaytay-Nasugbu Highway to Sta. Lucia Land, Inc.

The company’s wholly owned subsidiary and property arm Roxaco Land Corp. also sold its 2.8-hectare commercial property located in the Nasugbu town proper for P98 million to the SM Group.

Sta. Lucia Land has a number of developments in Batangas, which include Catalina Lake Residences, Costa Verde, Greenmeadows, Nasacosta Peaks, Ponte Verde, Summit Point, and Bauan Grand Villas.

SM Group’s beach resort Hamilo Coast in Nasugbu, Batangas is targeted to be a place for master-planned communities anchored on sustainable beach resort living.

In December, RCI’s subsidiary Roxaco-Asia Hospitality Corp., the operator of the company’s five budget hotels under Go Hotel franchise, decided to sell and relocate its Cubao site to another location for about P411 million, which will be used to improve existing sites and lower the subsidiaries outstanding debts until a new site has been found.

RCI’s attributable net loss widened 19% to P337.706 million as of September 2019, despite revenues rising by 61% to P624.42 million.

Broken down, hotel revenues grew 18% to P340.225 million; real estate revenues increased 127% to P624.42 million; and sale of goods grew 344% to 109.391 million.

For the third quarter, attributable net loss narrowed by 19% to P86.061 million due to higher revenues by 89% to P208.552 million. Revenues from its hotel segment grew 7% to P113.914 million; real estate revenue surged to P57.679 million from P302,000; and the sale of goods increased 962% to P36.959 million.

Shares in RCI climbed 7 centavos or 3.17% to close at P2.28 each at the stock exchange on Tuesday. — Vincent Mariel Galang

Hong Kong’s iconic HSBC lions caught in protests’ crosshairs

EXPERTS IN Hong Kong could be facing a dilemma unseen in more than six months of protests: How to clean a pair of iconic bronze lion statues that have stood guard over HSBC Holdings Plc’s main offices for decades as one of the city’s foremost symbols of colonial-era largess.

Demonstrators defaced the lions, nicknamed “Stephen” and “Stitt,” on New Year’s Day during a mass march intended to show Beijing they would continue to fight its grip into the new year. They splashed the statues with red and black spray paint that depicted bleeding from the eyes, and a phrase in Chinese saying HSBC had been dyed the red of China. At least one statue was set ablaze. Workers struggled to scrub them clean Thursday morning.

The lions’ visages adorn local bank notes issued by HSBC and are a remaining symbol of colonial rule and cultural heritage in the former British outpost. “This is terrible! Worse than even a foreign invasion,” one woman said as she passed by. Another woman cried.

HSBC was “saddened” by the attempts to vandalize the lions and initial cleaning was being carried out, a spokesperson for the bank said in a statement. “We are engaging conservation experts to advise us on the professional restoration required and the process can take time. We are committed to doing everything we can to conserve the bronze lions, which form parts of the bank’s and Hong Kong’s history,” it said.

STEPHEN AND STITT
HSBC first brought the two lions — animals the Chinese believe bring good fortune and prosperity to those they guard — to watch over its Shanghai office on the Bund in 1923. They were replicated in 1935 and shipped to Hong Kong, where one was named “Stephen” — after A.G. Stephen, who commissioned the sculptures and served as the bank’s chief manager from 1920 to 1924 — and the other “Stitt,” after G.H. Stitt, its then-manager in Shanghai.

This isn’t the first time the venerated statues have seen trouble: The lions were confiscated by the Japanese during World War II and shipped to Japan to be melted down. They were rescued in 1945 from an Osaka dockyard and restored to their former positions the following year, with shrapnel and bullet marks on Stephen.

The bank has become a target of protesters’ ire since closing an account linked to the city’s pro-democracy movement in November. In a statement issued late on Jan. 1, it condemned the acts of vandalism — which included the lighting of a fire at one branch — and called them “unjustified.”

Police last month arrested four people for suspected money laundering linked to the pro-democracy protests and froze HK$70 million ($9 million) in funds related to the Spark Alliance, a group that helps protesters pay legal fees. HSBC defended its decision to close the account, saying the move was unrelated to the December arrests and followed a “direct instruction” from the customer. — Bloomberg

Facing Brexit unknowns, UK financial sector pays near $100 billion in taxes

THE SUN reflects off a skyscraper in the City of London, near the Royal Exchange and Bank of England, London in this Dec. 2 photo. — REUTERS

LONDON — Britain’s financial industry paid a record near $100 billion in taxes in the year to March, reaffirming its central role in funding the state at a time when its future prospects have been clouded by Brexit.

The 75.5 billion pounds ($99.2 billion) raised equated to one pound in 10 of all UK tax receipts, the City of London Corporation said in a report on Tuesday, adding that this month’s UK departure from the European Union (EU) would impact future contributions.

With Prime Minister Boris Johnson yet to start trade negotiations with the EU he says must be concluded during a transition period that ends in December, the industry is still waiting to see how much direct access it will have in future to the bloc, its biggest export market.

The sector is the economy’s most important, employing 1.1 million people nationwide.

Patchy access could see an acceleration of the minimal moves so far by Britain-based staff of banks, insurers and asset managers to over 300 new hubs set up inside the EU, denting the City’s global role.

“Legislative changes, technological innovation and the uncertainty surrounding Brexit are all expected to have some impact on the total tax contributions of the sector,” the report compiled by consultants PwC for the City said.

Buoyant contributions from finance will be critical for a UK government re-elected last month on promises of increased spending on health care.

With Brexit looming “the UK must remain competitive to safeguard the sector’s employment base and significant tax contribution,” added Catherine McGuinness, policy chair at the City of London Corporation, the municipal authority for the financial district.

“It will play a critical role in fuelling our economic success after we leave the European Union.”

The City is pressing the government to avoid making it harder to recruit internationally after Brexit. Banks have also called for cuts in taxes, including a levy introduced after Britain bailed out lenders during the financial crisis.

Financial sector workers generated an average of 31,463 pounds in total employment taxes, the annual tax report — the City’s 12th — said, well above the average UK salary in the economy overall.

The latest receipts compared with a then record 75 billion pounds in the year to March 2018. — Reuters

JoyRide readies Cebu expansion

JOYRIDE plans to expand outside Metro Manila and set up shop in Cebu ahead of the March 23 termination of the study that allows motorcycle taxis to operate.

In a press conference on Tuesday, officials of We Move Things Philippines Inc., the corporate name of JoyRride, said they were studying setting up facilities in Cebu. The expansion is part of the company’s P30-million initial investment.

“Part of the negotiations is for us to build a facility in Cebu, so ‘yun ang pinag-uusapan namin ngayon (that’s what we are talking about now),” JoyRide Vice-President for Corporate Affairs Jose Emmanuel “Noli” M. Eala said.

But he said he was not sure whether the facilities would be ready before the March deadline.

“We’re still negotiating all the facilities, kung saan namin gagawin ‘yung aming opisina (where we will put up our office),” he said.

Mr. Eala, after a media tour of JoyRide’s facilities in Antipolo, called the business venture a calculated risk.

“Ang masasabi namin, (What we can say is,) how can we push government to act on this favorably if we will not provide them with services like this, facilities like this… We are trying to convince government that we can make this industry safe,” he said.

“Unless some very enterprising businessmen take this calculated risk in business, then hindi po matutuloy ito. (this will not continue),” he added.

The inter-agency technical working group studying motorcycle taxis will present its data to the government at the end of the pilot program, ahead of changes to a law prohibiting the use of motorcycles in transporting passengers for a fee.

“Ito po ay nasa study pa lamang tayo. Nasa period pa lang tayo ng data gathering. Hindi pa po ito talaga actual na negosyo. Hihintayin po namin ‘yung batas, (We are still doing a study. We’re at the period of data gathering. This is not yet an actual business. We will wait for the law).” Mr. Eala said.

He said that if the law is not amended to their favor, then the business will move towards food delivery. The company’s delivery drivers are separate from JoyRide drivers.

JoyRide said that rides are currently not subject to fare surges. But the continuation of this pricing scheme is not assured if the government officially classifies the motorcycle taxis as public utility vehicles.

“Pag naging batas na ‘yan, siyempre ma-re-regulate ‘yan. So susunod kami sa sinabi na presyo ng gobyerno, (When this becomes law, of course it will be regulated. So we will follow the pricing set by government),” Business Development Adviser Edwin D. Rodriguez said in an interview after the press conference.

Asked if JoyRide will retain the no-surge pricing, he said: “Hindi ko masabi, kasi kung ano sinabi ng gobyerno (I can’t say, because whatever the government says) we will just have to comply. But as it is right now, we can assure the public and the government that JoyRide will not charge any surge charge.” — Jenina P. Ibañez

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