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Goldman Sachs answers investor demands on consumer business

GOLDMAN SACHS Group, Inc. will start disclosing the results of its consumer business regularly. — REUTERS

GOLDMAN SACHS Group, Inc. unveiled details about its consumer business for the first time on Tuesday and will start disclosing its results regularly as part of a broader reporting-line shuffle, responding to long-standing requests for more transparency from analysts and investors. The changes are part of Chief Executive Officer David Solomon’s efforts to get Goldman in line with rivals like JPMorgan Chase & Co. and Citigroup that have bigger consumer businesses and share more information with investors.

Goldman’s consumer business, which includes Marcus and the bank’s credit card, generated $822 million in revenue over the four quarters ended Sept. 30, representing 2.4% of the bank’s total revenue during the period.

Since Goldman launched the online retail bank in 2016, analysts have repeatedly asked for more details about its credit quality and growth on earnings calls.

Some have also sounded alarms about potential risks, worried that Goldman might be expanding into consumer lending ahead of a recession, with little experience in the business.

Executives have typically said they are duly cautious about credit quality, and that the consumer business was not yet big enough to warrant routine disclosures.

Goldman set aside $302 million for potential consumer credit losses in the first nine months of 2019, compared with $338 million for 2018 and $123 million in 2017, according to its 8-K filing with the US Securities and Exchange Commission.

As the business grows, the Wall Street bank will naturally have to boost credit provisions. Goldman reported $5.5 billion worth of consumer loans as of Sept. 30, up 22% from yearend.

Goldman unveiled Marcus as part of a broader strategy that initially planned to generate $5 billion in fresh annual revenue by entering new businesses and growing existing ones.

TRADING WOES
The bank had little choice but to change, due to huge declines in trading, which was once its main profit engine. Goldman has since backed off the revenue goal, intending to replace it with other metrics at its investor day later this month, Reuters reported in November.

Its new consumer reporting line will include details about not only Marcus, but also wealth management — another area the bank is trying to expand. Goldman already has a sizable private bank that caters to the ultra-rich, but wants to start offering more services to individuals with fewer assets as well.

Over the four quarters ended Sept. 30, Goldman generated $5.1 billion in revenue from that segment, $822 million or 16% of which came from the consumer portion. The broader segment generated $540 million in pretax profit, representing less than 5% of total earnings.

The other major change Goldman announced in a filing, which was sent out late on Monday but was made public on Tuesday, is its decision to get rid of a reporting-line segment called “Investing & Lending,” which detailed revenue from those activities across various businesses.

Goldman created that segment as part of another reporting-line shuffle in 2009. It aimed to clarify what the bank earned from activities with its own balance sheet, after a sweeping financial-regulatory law banned proprietary trading.

But investors and analysts have complained that the reporting line was a volatile black-box, and discounted its importance to Goldman’s overall profitability. Revenue from that line will now be distributed across different segments.

Goldman will now have four reporting lines: Investment Banking, Global Markets, Asset Management and Consumer & Wealth Management. Previously its results were segmented into Investment Banking, Institutional Client Services, Investing & Lending and Investment Management. The trading business, which was previously housed in Institutional Client Services, will now be part of Global Markets.

Some analysts applauded the changes.

“The new reporting structure appears more centered around its different client segments and should help drive increased accountability in how it executes on its relatively new strategy,” Barclays analyst Jason Goldberg said.

Goldman is expected to unveil the new targets and metrics at its first-ever investor day on Jan. 29. It is expected to report fourth-quarter results on Jan. 15.

The investment bank’s shares were up nearly 1.2% in morning trade. — Reuters

Labor shortage seen to lift workers’ pay

DMCI HOLDINGS, Inc. Chairman and President Isidro A. Consunji expects construction workers’ take home pay to increase as the construction industry experiences labor shortages.

Dapat ‘yung take home mga P1000 a day (Their take home pay should be P1000 a day),” he said, from the P700 daily pay of lower-skilled carpenters and masons.

DM Consunji, Inc. is the construction arm of DMCI Holdings, Inc.

He told reporters on the sidelines of the 4th Philippine Construction Industry Congress that the aggregate requirement for construction workers has increased dramatically due to the government’s infrastructure program “Build, Build, Build.”

Based on the its road map launched last year, the construction industry expects to increase available jobs to 7.1 million. According to preliminary data from the Philippine Statistics Authority, there were 4.2 million jobs in the industry last year.

Mr. Consunji said jobs in the provinces have also increased, discouraging workers to move to Metro Manila for construction jobs.

“People are now realizing that the salary scale of the construction of the industry is rather low,” he said, noting the physical hazards the jobs entail. Workers also deal with expensive housing and traffic in Metro Manila.

“Effectively labor is saying, you pay me more money so that I can work here,” he said.

The ability of construction companies to raise wages immediately is limited because they bid forward, he said.

“They cannot adjust the salary scale very fast without affecting the margin. I think over the next three, four years, mag-a-adjust dramatically, the adjusting of the skills,” he said.

He said his company is putting up living quarters, offering shuttle rides, and giving allowances for skilled workers in addition to their pay.

Trade Secretary Ramon M. Lopez told reporters at the same event that construction companies have no choice but to increase wages to continue to attract skilled laborers and continue their projects.

“You add some salaries para lang pumunta sila sa (just so they would go to the construction) site, and that’s happening. And they said that’s because of the demand in other sectors, BPO (business process outsourcing), which are all growing as well,” he said.

“They will have to compete with the workforce and that means also that they will have to offer bigger salaries in this sector. That’s good, that should make their sector more attractive to workers.” — Jenina P. Ibañez

What happens when an airline opens a restaurant?

By Adam Minter, Bloomberg Opinion

THE Mid Valley Megamall in Kuala Lumpur has more than 100 restaurants, cafés, and snack stands to meet every kind of craving. As of this month, that list includes a novel and seemingly quixotic option: Santan, a café that serves airplane food in cardboard boxes.

As restaurant concepts go, “quick airplane food” isn’t an obvious winner. But Santan is owned and operated by AirAsia Group Bhd, the region’s most successful budget airline. With profits declining in the industry, the company is looking to diversify — it wants to reduce flying from 80% of its business to about 40% by 2025 — and earthbound airplane food is central to its vision. Over the next few years, it plans to open more than 100 new Santans.

“A year ago, when I first conjured the idea of turning… our in-flight food choices into a fast-food restaurant, everyone thought I was crazy,” says Tony Fernandes, the company’s chief executive officer. “Just as they thought 18 years ago when I said I was starting an airline. Look how that turned out!”

That may seem like an inapt comparison. But the idea of creating “the first ASEAN fast food franchise,” as Fernandes puts it, isn’t inherently crazy. Southeast Asia’s expanding middle class is increasingly keen on upgraded dining options. And Western fast-food outlets, such as McDonald’s and KFC, have been proliferating. In Malaysia, Yum! Brands Inc., owner of KFC and Pizza Hut, has opened more than 1,000 outlets, making it the country’s — and the region’s — most successful food-service operator.

So the market is potentially vast. The problem for AirAsia is that winning customers in Southeast Asia’s cutthroat restaurant industry will be much harder than winning passengers on budget aircraft.

For one thing, Fernandes may be misreading the competition. Those American fast-food outlets make up a mere fraction of the 167,000 food and beverage businesses in Malaysia, the vast majority of which serve local fare. That makes KFC a relative novelty: an expensive foreign twist on a local favorite (fried chicken). A one-piece chicken-and-rice combo there costs about $3.00, while a plate of Malaysian chicken rice typically goes for half that.

Another problem is that what Fernandes calls “ASEAN food” — using the acronym for the Association of Southeast Asian Nations — doesn’t really exist. Santan’s menu is a puzzling hodgepodge of vaguely regional dishes: nasi lemak, pho, Cambodian pineapple fish-fillet noodles and others. It’s the kind of error that only an airline would make. In the air, a menu is a compromise intended for a diverse set of customers who don’t really expect much choice. On the ground, a menu needs to match quirky and far more specific cravings. Nobody, anywhere craves “ASEAN food,” just as nobody craves “European Union food.” Instead, Southeast Asians seek out — and often debate — the highly distinctive cuisines of respective nations, such as Thailand or Vietnam.

Of course, if Santan’s food was uniquely good, that might not be such an obstacle. But it isn’t. On a recent Saturday, my son and I visited the inaugural store and ordered three dishes. The Nyonya curry laksa had little flavor beyond the chili; Uncle Chin’s chicken rice was salty and greasy; and the chicken satay with peanut sauce was, in my son’s estimation, “fuzzy and too cooked.” Even worse, for a café in an emerging market, Santan offers poor value: Meal prices average 15 ringgits ($3.62) with a drink, about 25% more than a chicken-and-rice combo at KFC, and double what a similar meal would cost in a local joint.

And that’s the biggest problem for AirAsia. A chain offering generically regional dishes can’t hope to compete with the hundreds of thousands of small, independently owned eateries that make Southeast Asia one of the world’s great culinary destinations. It’s like Taco Bell trying to win over Mexicans or Olive Garden hoping to entice diners in Tuscany. Why choose the corporate compromise when you can have the real thing?

Two decades ago, AirAsia revolutionized consumer expectations in the region with the catchphrase: “Now everyone can fly.” But everyone in Southeast Asia can already eat — and eat better than airplane food.

Amazon to showcase its transportation drive at world’s largest tech show

FROM making cars talk using Alexa’s voice to managing data from factories full of robots, Amazon.com Inc. wants a big piece of the action in transportation, and this week at CES will unveil more about its strategy to achieve that goal than ever before.

The Seattle retail and cloud services powerhouse plans to use the annual technology show in Las Vegas to unveil its plan to be a major player in self-driving vehicle technology, connected cars, electric vehicles and management of the torrents of data generated by automakers and drivers, company executives told Reuters.

Amazon Web Services, which provides large-scale cloud computing and data management services, is central to Amazon’s strategy.

“We really are extending ourselves more and more out in the ecosystem from manufacturing to connected car,” Jon Allen, head of professional services in Amazon Web Services’ automotive practice, said in a telephone interview. “The takeaway message on this is if you go to CES this year we really are taking it as a ‘One Amazon’ view.”

Until now, Amazon has shown its transportation strategy to investors — and rivals — one piece at a time. Amazon has invested in self-driving software start-up Aurora. It also has signed deals with automakers to deliver packages to vehicle trunks, help develop electric vehicle charging networks and use AWS to network their factories.

The Seattle company will share the CES stage with partners such as virtual reality firm ZeroLight, electric vehicle start-up Rivian, Canada’s BlackBerry Ltd. and video game software development company Unity Technologies.

“It’s our attempt to weave everything together in a single experience for our customers,” Dean Phillips, AWS’ automotive technical leader, told Reuters. “Customers don’t distinguish AWS from Alexa from Amazon.com. It’s Amazon.”

At CES, ZeroLight and General Motors Co.’s Cadillac will demonstrate how they are partnering to develop an online vehicle configuration experience that will allow high-fidelity images of vehicles that consumers build online to be taken with them on visits to dealers, Phillips said.

The process can open the door to dealers better meeting customer needs by knowing what users focused on when building their dream car. It has already boosted profit per vehicle at Volkswagen’s Audi brand by an estimated €1,200 ($1,340), he said.

Rivian, in which Amazon has twice invested, will demonstrate Alexa in the R1T electric pickup truck it will begin building this fall, as well as the companion R1S SUV that will follow, Phillips said. Rivian will begin building 100,000 electric delivery vans for Amazon starting in 2021. Alexa will be integrated into all of those vehicles, Amazon said.

BlackBerry and Karma Automotive, using AWS back-end services, will demonstrate how to better predict an electric car’s battery health, allowing automakers to train drivers on how to drive in ways that will extend the battery’s lifetime, he said.

Unity will show how its gaming simulations are used by automakers to create virtual worlds to allow self-driving vehicle developers to speed the training of the software used in those cars, Phillips said.

Some industry officials fear the loss of profits to technology companies, but Amazon has worked to woo the sector by showing greater flexibility to company needs. For instance, when Alexa is launched in GM cars in the US market next year, it will be push-button activated and not use the wake word, “Alexa,” Amazon officials said.

A new in-car feature, using the voice command “Alexa, pay for gas,” will enable users to buy fuel at 11,500 Exxon and Mobil gas stations, Amazon said.

A new version of Fire TV will be available this year on in-vehicle entertainment systems from Fiat Chrysler Automobiles NV, Amazon said. — Reuters

UK financial watchdog to hone data crunching to spot problems easier

LONDON — Britain’s financial regulators said on Tuesday they will transform their data crunching capabilities over the coming decade to spot problems in banks and markets earlier.

Banks and insurers must report a wide range of data, such as how much capital and cash they hold and exposures to risky instruments like derivatives.

Data collection has grown sharply since regulators failed to spot a global financial crisis in the making a decade ago.

The Bank of England (BoE) and the Financial Conduct Authority (FCA) published plans to obtain data more efficiently from banks, insurers and investment firms, and to analyze the data better to predict, monitor, and respond to issues.

“Recent developments in technology should allow us to improve how we collect data from firms, making reporting more timely, more effective and less burdensome for firms,” said Sam Woods, deputy governor at the Bank of England.

The FCA said it wants to transform itself into a “highly data-driven regulator.”

The BoE is setting itself a decade-long timeline for the “substantial challenge” of reforming data collection so that it could explore “more radical changes.”

There would be no “one-size-first-all” solution, the BoE said in a nod to lawmakers who want less burdensome rules for smaller banks to encourage competition.

Consultants McKinsey estimated last year that regulatory reporting by UK banks cost them 2 billion to 4.5 billion pounds annually as they fill in mandatory forms that could each contain thousands of data points.

John Liver, a UK financial services partner at consultants EY, said automated collection could cut costs. “The path to transformation will require considerable effort… but the potential rewards are very significant,” he said.

The BoE set out ideas for reforming data collection in a discussion paper and will respond to feedback later in the year.

Changes could include more detailed common data inputs and modernizing how the BoE writes reporting instructions, such as by using computer code instead of everyday language.

Another solution could be to introduce a “pull model” that would allow the BoE to query certain data held within firms and generate reports on demand, the BoE said. — Reuters

Megaworld unit expects P1.4-B sales from Tanza project

MEGAWORLD CORP. subsidiary Global-Estate Resorts, Inc. (GERI) recently launched a 17-hectare residential project in its Arden Botanical Estate in Tanza, Cavite, where it expects to raise P1.4 billion in sales from the project’s first phase.

In a statement Wednesday, the Andrew L. Tan-led tourism and leisure developer said it introduced the residential village The Lindgren located within the 251-hectare Arden Botanical Estate.

The project has 123 prime lots with sizes ranging from 159 square meters to 252 square meters priced between P10 million and P13 million.

GERI said it designed the property such that 40% of the entire village will be comprised of green and open spaces. It will have amenities such as a multi-purpose hall, fitness center, adult pool, kiddie pool, Jacuzzi, sauna, daycare center, children’s playground, multi-purpose court, outdoor bar and cabana, convenience store and collab space.

“Our concept is to make everyone feel the community vibe. There will be several areas for personal relaxation and socialization where community members can work, play, and grow together,” Megaworld Global-Estate, Inc. Head of Sales and Marketing Rowena Espiritu was quoted in the statement as saying.

The house and lots are scheduled for turnover starting 2025.

GERI said the design of The Lindgren is in line with its plan to have half of the entire Arden Botanical Estate allocated for residential developments, and the remaining half for commercial, institutional, recreational and open spaces.

Megaworld and GERI, the co-developers of Arden Botanical Estate, have committed to spend P18 billion to develop the township over the next 15 years. It is the 25th township of Megaworld and the seventh under GERI.

Shares in GERI at the stock exchange slipped 2 centavos or 1.72% to P1.14 each on Wednesday, while shares in Megaworld increased P0.12 or 2.88% to P4.29 each. — Denise A. Valdez

Dining Out (01/09/20)

New at Canton Road

NEW AUTHENTIC Chinese signature dishes are now found at Shangri-La at the Fort, Manila’s Canton Road restaurant this month. The fresh line-up of flavors highlight more Cantonese dishes mixed with Sichuan, Huaiyang and Mingnan selections. These dishes are: Canton Road three-flavor dessert combination, Braised quail eggs in mixed herbs and spices, Stir fried sea conch and celery in special chili sauce, Double boiled sea conch soup with chicken served in coconut bowl, Szechuan style tiger prawn tail with dried chili and crispy sesame ball, and Sichuan spicy beef tongue with bean sprouts. The a la carte menu is available for lunch from 11:30 a.m. to 2:30 p.m. and dinner from 6 to 10:30 p.m. daily. For gatherings of up to 50 persons, guests may curate their own dining experience in any of the nine private dining rooms. Reservations may be done through e-mail at cantonroad@shangri-la.com or via Canton Road’s Facebook (@CantonRoad).

Cebuano flavors in Cucina

CULINARY favorites from the Queen City of the South reign supreme at Cucina this January. Located on Level 24, Marco Polo Ortigas Manila’s all-day dining destination continues its mission to showcase and highlight different regional fare. From Jan. 11 to 23, Cucina will be featuring select dishes from Cebu as part of the daily lunch and dinner spread. Recommendations include the Sinuglaw (grilled pork belly and fish ceviche), Paklay (pork, beef and goat innards), and the classic Humba (braised pork belly with tausi and dried banana blossoms). Other dishes include the Nilarang na pagi (ray in coconut milk), Ginabot (pork cracklings), and Cucina’s own take on the puso (cooked rice in woven coconut leaves). The restaurant’s chefs also feature the Philippine mango, one of Cebu’s treasured products, in a seasonal dessert pizza, which is only available for the duration of the promotion. For more information on Cucina’s spotlight on Cebuano cuisine this January, call (+632) 7720-7720 or e-mail restaurant.mnl@marcopolohotels.com.

Ali Mall welcomes Popeyes

ARANETA CITY starts the year by welcoming the international fried chicken chain Popeyes to Ali Mall. “It’s our (Popeyes) first opening of the year so why not do it in the City of Firsts, so here we are now in Araneta City today celebrating. Thank you so much,” said Kuya J Group Marketing Director Ton Gatmaitan. Popeyes is open during Ali Mall operating hours and is located at the Ground Floor, Ali Mall Araneta City.

Which commodities contributed the most to 2019 inflation?

Which commodities contributed the most to 2019 inflation?

Southern discomfort

By Carmen Aquino Sarmiento

MMFF Movie Review
Mindanao
Directed by Brillante Ma. Mendoza

MINDANAO, Brillante Ma Mendoza’s latest (Metro Manila Film Festival (MMMFF) entry, humanizes as well as mythologizes the second largest island in our archipelago. We can all relate to its great themes: serious illness and death, the suffering of little children, families riven by war. Admittedly though, we, the so-called Christian lowland majority, are largely ignorant about our “Muslim brethren,” or the Moro, which is how the Islamic societies in the Philippine South now call themselves.

Here, they are all too human. Saima (Judy Ann Santos) helps her cancer-stricken daughter Aisa’s (Yuna Tangog) cope with her pain through the re-telling of the saga of the brothers Raja and Sulaiman, and their battle with the enemy dragon spouses Ginto at Pula. The Princess Aisa is a character in this tale, shown through animation, just as the little girl might imagine it. The battle cry for these fragile children to be brave and keep fighting against their dread diseases, is repeated by the other parents at the House of Hope Transient Patients Home and Hospice. Aisa and her mother stay there, in between treatments at the Southern Philippines Medical Center. When death comes for one so young, you do not give up that easily.

Ms. Santos’ Best Actress awards are well-deserved. One senses Saima’s strength as well as her infinite sorrow. She is helpless to protect her child against the cancer which is her death sentence, but she must remain strong for her. She sniffs at the empty strawberry ice cream container — that was Aisa’s favorite flavor — as the scent is a way to remember her. Little Yuna Tangog was utterly convincing as a retinoblastoma patient. That is an especially cruel cancer which first eats away at the eyes. It usually afflicts toddlers and preschoolers. Often the only way to stop its nefarious progress is to remove the cancerous eyes, while continuing other treatments.

The celebration at the House of Hope and the testimonies of the survivors sympathetically depict the community among the poor who look out for one another in their suffering. It is to be hoped though, that after they saw the conditions there, a big star like Ms. Santos or the successful director Mendoza himself, might donate at least two sets of institutional size cookware (one for halal, and the other not) to the House of Hope. That way, these poor mothers, already burdened with having to care for their patients, would be spared the inconvenience and expense of having to bring their own cooking pots and utensils. It would definitely make for a smaller carbon footprint and a greater sense of community, for them to pool their resources and cook just one big pot of rice and two large batches of halal and non-halal food, rather than kaniya-kaniya (every man for himself).

Saima’s husband Malang (Allen Dizon) is an army medic who must be away in battle while his child is dying. The director Mendoza has declared, “Whether we like it or not, when we say ‘Mindanao,’ people relate it to the conflict there. Therefore, you cannot just make a film about Mindanao and not mention the conflict.”

The Maguindanaoan public intellectual, Datu Gutierrez “Teng” Mangansakan, curator/director of the Salamindanaw Asian Film Festival differs: “We do not deny that conflict is part of our history, but Mindanao is more than that. At a time when we are faced with tragedy and disaster, we rise beyond our differences and see our common humanity.”

What we Christian Lowlanders would take as simply a moving film about family tragedy which just happens to be set in Mindanao, apparently has other far-reaching reverberations, especially among the Maguindanaon, the ethnolinguistic group to which the protagonist Malang belongs. Mindanao has 13 distinct ethnolinguistic groups of Moro with their own cultural practices and traditions. Mr. Mendoza was called out for “ignorance of the dynamics and peculiarities of Bangsamoro geopolitical reality and experience.” A respected personage from Basilan has endorsed Mindanao and a Tausug academic was the production consultant. However, it was pointed out that those worthies are not authorities on Maguindanaon or mainland reality and cultural specificity. Cotabato City’s Alnor Cinema, the only movie house in the Bangsamoro region and in Maguindanao, where this film is supposedly set, did not screen Mindanao The Movie during the Christmas holidays.

Datu Mangansakan found strong elements of the Maguindanao ethos in the film, eg., of alamatan (foreboding or premonition) and of mulka and bagkiyas(retribution). He cites the sequence where Malang’s best friend, the soldier whom he calls “Buddy,” (Ketchup Eusebio) visits Aisa in the hospital, and brings her pansit which he jokingly tells her is for long life, although he knows she’s dying of cancer. Later, on the way to a military operation, Eusebio’s character gets a loving call on his cellphone from his son who’s celebrating his birthday. Datu Mangansakan explains that in Maguindanaon, this is an instance of “kaalamatan sikanin” or the foreboding of a dread event. In the next scene, “Buddy” is killed. “Nabagyasan nu wata” for his insensitive remark to the dying child Aisa. Datu Mangansakan goes on:

“In an earlier scene, the Maguindanaon soldier Malang (Allen Dizon) performs the sagayan (the Maguindanaon war dance) wearing both his military uniform on and the tiered skirt of the sagayan dancer, embodying both the hero and the antihero. Towards the film’s end, he is wounded in the military operation, and misses his daughter’s funeral. ‘Nabagkyasan nu bangsa nin’ or in Filipino ‘na-karma’ (got his comeuppance) for bastardizing his own tradition.”

Datu Mangansakan has written about how when the Bangsa Moro resisted the American Colonial presence, cinema was used to represent them as “The Other”: “Because the studios were some 300 miles from Mindanao, the construction of images of the Moro has been marred by misrepresentation rooted in ignorance of cultural traditions, as well as religious prejudice and discrimination that mirror the prevailing political, historical and social climate, rendering the Moro as a subaltern: unable to speak, voiceless.”

Still, to have big stars such as Judy Ann Santos in this film; Cesar Montano in Bagong Buwan (2001; Marilou Diaz-Abaya) and Nora Aunor in Thy Womb (2012; Brillante Ma. Mendoza) portraying Muslims, has been a cause for elation among the Bangsa Moro. Even Datu Mangansakan recalled how when Bagong Buwan was shown, for so many Moro, “It was as though our identity, our struggle and our very existence have been validated via the big screen. Suddenly we have become larger than life, our narratives made part of the national consciousness.

“Mainstreaming of Moro narratives gives us a positive jolt and that is totally understandable. But we must be able to discern beyond the cosmeticism provided by our exotic culture and traditions, and the portrayal of armed conflicts that have been our truths for many Ramadans past. We must also be able to determine the intention why the same narratives of our people are perpetuated, thereby cementing them in the national imagination. We Moros should not be passive players in the hegemonic business of appropriating the Moro image and narrative. Mga pagali ko, the subaltern can now speak! We must endeavor to create the Moro image and narrative ourselves.”

Body Doubles

By Carmen Aquino Sarmiento

MMFF Movie Review
Sunod
Written and directed by Carlo Ledesma; co-writer Anton Santa Maria

Sunod is unusually sophisticated for the Filipino horror genre. Its terrors subtly operate along several levels. There is the stock opening nightmare scene in the graveyard, replete with howling winds, swirling black veils and snakelike tree roots. It’s not real, but what follows is still hair-raising — not your grandmother’s Shake, Rattle En Roll. Cineastes agree that it was downhill there, after the very first in the series, or post-1984.

Olivia Sason, a.k.a. Liv’s (a coolly restrained Carmina Villaruel) very existence is already a horror story: she is an unemployed single mother with a seriously ill 12-year-old daughter, facing mounting hospital bills all alone. No one, not her daughter’s father, nor her own family or any friends are around to help her. Her desperation is palpable as she applies with a call center known as LGO (Liboro Global Outsourcing) at a job recruitment fair in a downtown university. She is accepted solely on her spoken English skills. She swallows the humiliation of being at least 20 years older than most of her fellow agents in training, and is not as tech savvy as them. Her maturity serves her in good stead, however, when she successfully projects the authority of a supervisor (which she is not), thus retaining a valuable client. The fire breathing dragon lady CEO, Karen Liboro (Mylene Dizon) even fast tracks her regularization. Being a casual or endo contractual is a living nightmare for most of our work force.

Sunod was touted as the only horror film entry for the 2019 Metro Manila Film Festival (MMFF). However, each of the short, student-made films which opened every main features, did have a horror theme derived from our traditional lower mythology — aswang, manananggal, multo, etc. This film’s production polish has much to teach our student filmmakers. There are ever so subtle shifts in the lighting with each scene change: from the lighter blues and greys of the hospital, which segue into the darker steely shades of the call center, where one never knows whether it is night or day, and everything is mechanically scripted and constrained. There is an ambience of death and decay in the moldering yellows and mysterious shadows of the Liboro Building, where LGO occupies the top floor, and a washed out, shabby weariness to the small home with its worn furnishings, which Liv and her young daughter Anelle (Krystal Brimner who, like her character, is also 12 years old) share. The tall Gothic statues of dramatically backlit dark angels in the foyer of the Liboro Building, on whose top floor the call center holds office, are pure camp. They could be props from Hammer Studios. The music is brazenly manipulative, too obviously prompting us to cringe, and triggering the racing of our pulse rates, but this is a minor annoyance given the film’s otherwise outstanding production values.

This tale of possession is reminiscent of the classic The Exorcist (1973, by William Friedkin). The girls in both films are around the same age, and are both being raised by single mothers. In The Exorcist, it is a supernatural demon who takes over Regan (Linda Blair). In Sunod, another child, Nerissa (13-year-old Rhed Bustamante, looking like she belongs in Miss Peregrine’s Home for Peculiar Children), who happens to be the resident ghost of the Liboro Building, enters Anelle. The dramatically negative personality changes which may come with adolescence make child-raising a real-life, terrifying experience for many parents, and doubly so for a single parent going it alone.

But it is not just Anelle and Nerissa who are not whom they appear to be. Even Liv’s supervisor Lance (J.C. Santos) whom she initially took to be her knight in shining armor as his full name, Lancelot, implies, turns out to be just another prick. From his perspective, one might call it a fair quid pro quo, since he does ante up for Liv’s enormous debts. After kneeing him in the groin, she still deposits his check.

Liv’s barely concealed indignation when the LGO call center human resources department refuses her request for a huge advance on her salary, as well as her earlier flash of temper when the job recruiter was about to turn her away, hint at why she might be all alone in facing her problems. It seems she has used up whatever good will she might have had with her child’s father, her family, or other friends.

There is only Liv’s officemate and new-found confidant Mimi (Kate Alejandrino) for now (no spoilers about what happens to Lance), who’s available to drive her and Nerissa/Anelle, so that Nerissa can find her long-lost mother Perla (Susan Africa making crazy eyes), and finally be at peace, then leave Anelle’s body for good. The delightful Ms. Alejandrino ably serves up the film’s few moments of levity. Mimi frankly admits to being a professional call center trainee, simply so she can collect the training allowance, without the accountability, stress, and aggravation of actual BPO employment. Nerissa/Anelle transforms into a human Waze as she directs Mimi through the winding slum alleys. Mimi glances in her rearview mirror at the literal whites of the possessed Anelle’s eyes, and deadpans, “No, she’s not scary, but this is so-o-o crazy.”

At least in Sunod, the laughs are intended, unlike in such ineptly made horror films, particularly of the slasher sort. Think of Topel Lee’s Bloody Crayons, (2017, based on the Wattpad novel by Josh Argonza) where the audience is ROFL (rolling on the floor laughing) each time there’s a victim. The horror of Sunod unexpectedly grows on one with the appearance of the red ball of thread. In the film’s first part, Liv threads beads into necklaces and bracelets with innocuous clear nylon, as she keeps vigil by Anelle’s hospital bed. Here, the red thread ominously recalls the tik-tik’s tongue, which slithers through gaps in poor peasants’ pawid (nipa thatch) roofs, to vacuum up embryos in uteri, through the pregnant woman’s navel. Lonely Liv’s greatest fear is her daughter’s dying, but there’s more than one way to lose a child.

The color red and the idea of tethering might be an homage to Jordan Peele’s Us (2019). In astral travel, there is said to be a silver thread which tethers or connects one’s etheric or astral body to the physical body on this earthly plane. This ensures that one does not remain in whatever worlds one might encounter elsewhere, but be able to return to this planet. However hellish life here might be, the astral plane may not be all that great, as this film shows. In fairness, the world in which Liv temporarily finds herself in, does resemble an art gallery installation.

The red thread also brings to mind the Fates in Greek Myth: Clotho who spins it, Lachesis who decides upon the length each living being might have, and Atropos who with finality, cuts the thread. In the end, Liv is doomed, though exactly how her end might come about, and whether she will take her beloved only daughter with her, we may never know. Now for her at least, that is scary.

How PSEi member stocks performed — January 8, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, January 8, 2020.

 

Direct flights to regional airports driving tourist arrival targets

THE Department of Tourism (DoT) said its target of 9.2 million international visitors this year is driven by more airport development projects which allow tourists to bypass Manila’s congested airport.

“According to the National Tourism Development Plan, it’s at 9.2 million for this year,” Tourism Secretary Bernadette Romulo-Puyat told reporters on Wednesday on the sidelines of the conference on the Institutionalized Leveraging of Infrastructure Program for Airport Development (iLIPAD) held in New Clark City.

The 2019 tourist arrival target was set at 8.2 million.

“We are happy that there are more airports opening: Clark, according to (Transportation) Secretary (Arthur P.) Tugade, will be at the latest July, Legazpi, of course that will help. And of course, when we have the approval of the consortium for the expansion of NAIA (Ninoy Aquino International Airports).”

She was referring to the new passenger terminal at Clark as well as the Bicol International airport in Daraga, Albay, in the Legazpi City area.

“We want the tourists not to go via NAIA but to go straight, so we have Mactan, Bohol and of course Clark and Bicol (airports),” she added.

Asked about her department’s target tourism revenue for 2020, Ms. Puyat said: “I’m not quite sure but then for January to September last year, we had an increase of 25% from the previous year.”

Ms. Puyat and Transportation Secretary Arthur P. Tugade also signed a memorandum of agreement on behalf of the DoT and the Department of Transportation (DoTr) to “intensify infrastructure development that will support the development and promotion of tourism circuits across the country.”

Under the agreement, both departments will prioritize airport development programs in support of tourism development areas, monitor the progress of airport projects in such areas, and explore, develop and increase the value proposition of destinations “for sustainable tourism through the productive utilization of airport assets and route development.”

In her opening remarks during the conference, Ms. Puyat said the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), which is the infrastructure arm of the DoT, is now working with the DoTr “on the possibility of funding several airports to equip them (for night operations).”

“Funding amounting to P1 billion is set for approval by the TIEZA Board in its next board meeting. We must make sure that it’s not only more fun in the Philippines, but much safer too,” she added.

Mr. Tugade said: “I would like to thank the Department of Tourism. This gesture is very encouraging, because believe it or not, the capacity of all commercially-operating airports in the Philippines has and have to be night-rated in order that they make sense and the efficiency desired can be achieved.” — Arjay L. Balinbin

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