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FDC secures top credit rating

FILINVEST Development Corp. (FDC) has been given the top credit rating by a local debt watcher for its planned P15-billion bond issuance.

After the Gotianun-led holding firm announced last week its intention to apply for P8-billion retail bonds with an oversubscription option of up to P7 billion, Philippine Rating Services Corp. (PhilRatings) said Tuesday it is giving the proposed issuance a credit rating of “PRS Aaa.”

PRS Aaa is the highest credit rating that PhilRatings gives to borrowers, which means a company is expected to have an “extremely strong” capacity to meet its financial commitments.

PhilRatings likewise gave its credit rating to FDC a stable outlook, which means the rating is expected to stay in the next 12 months.

The debt watcher said it took into consideration FDC’s stable revenue streams, the strong track record of its subsidiaries, its conservative and professional management and the “well-positioned businesses” of the company in real estate and banking.

“Being in the business for over four decades, FDC and its subsidiaries have survived the country’s economic downturns, financial crises and political turmoil… The company’s chosen technical partners in power, hospitality and other business ventures also have the expertise and track record in their respective industries,” PhilRatings said.

It noted the company’s earnings remained “steady” over the years, with consolidated revenues keeping an uptrend since 2016. FDC’s total revenues grew 17% to P55.26 billion in the first nine months of 2019 to reach an attributable net income growth of 16% to P8.98 billion.

PhilRatings added the higher score of group 6 for the Philippines’ banking system by S&P’s revised Banking Industry Country Risk Assessment gives it confidence that FDC’s banking unit will perform well this year. It also said the projected growth of the real estate sector in the country by Jones Lang LaSalle, Inc. bodes well for FDC’s real estate business.

“PhilRatings based its assessment on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to FDC and may change the ratings at any time, should circumstances warrant a change,” it said.

FDC controls Filinvest Land, Inc.; East West Banking Corp.; Filinvest Hospitality Corp.; FDC Utilities, Inc. and Pacific Sugar Holdings Corp., among others.

Shares in the company at the stock exchange slipped 0.46% to P13.10 apiece on Tuesday. — Denise A. Valdez

It’s a (mostly) man’s world as Joker leads Oscar nominations

DARK comic-book story Joker led nominations on Monday for the Oscars in a best picture lineup dominated by stories by or about men and featuring only one actor of color despite efforts over the past few years to diversify the field.

The 11 nods for Joker, which turned the comic-book genre on its head with its terrifying portrayal of an isolated loner, covered all the major fields, including best picture, director Todd Phillips, and Golden Globe-winning actor Joaquin Phoenix. The controversial Warner Bros. movie has taken in more than $1 billion at global box offices.

Phillips in a statement said he saw the film as “a character study to reflect the world around us. Explore what we’re seeing and feeling in society, from the lack of empathy to the effects of the absence of love.”

Joker will compete for the top prize with testosterone race car drama Ford v Ferrari, Netflix gangster movie The Irishman, Nazi-era satire Jojo Rabbit, divorce drama Marriage Story, World War One film 1917, nostalgic show-business story Once Upon a Time in Hollywood, and South Korean social satire Parasite.

Netflix got 24 nominations, including for biographical drama The Two Popes and documentary American Factory, one of the first collaborations with the production company of former US President Barack Obama and his wife Michelle.

Only Sony Pictures’ Little Women, an adaptation of the classic Louisa May Alcott novel by an all-female production team, broke the mold with its best picture nod.

Director Greta Gerwig was shut out of the all-male directing race, but she scored a nomination for adapted screenplay. Stars Saoirse Ronan and Florence Pugh were also nominated.

Pugh said it was sad that Gerwig did not get a director nod but she told Reuters: “She got her film seen and people are recognizing the work and the talent that’s been put into it. So as sad as it is, we didn’t lose out completely.”

Little Women co-producer Amy Pascal said the movie “made history by being only the third movie ever to be nominated for best picture that’s written, directed, and produced exclusively by women.”

However, a record 62 women got nominations on Monday, almost one-third of the field, said the Academy of Motion Picture Arts and Sciences, whose 8,000 members vote on the nominees and the winners.

The academy on Monday did not respond to a request for further comment on the issue of diversity among the nominees.

The Oscars will be awarded in Hollywood on Feb. 9.

“I can’t look at this slate of nominees and say that anyone really doesn’t deserve to be there. I don’t necessarily see the omission of Greta Gerwig from this year’s slate of nominees as a gender-based decision,” said Owen Gleiberman, chief film critic for Variety, told Reuters.

SOMETHING FOR EVERYONE
Only one of the 20 acting nominees was a person of color: Cynthia Erivo for her lead role as anti-slavery activist Harriet Tubman in Harriet.

Last week the British BAFTA nominations were an all- white affair in the acting races.

A lack of nominees of color, which led to the hashtag #OscarsSoWhite, prompted the Academy in 2016 to diversify its mostly white, male membership by inviting more women and people of color to join.

Universal Pictures’ 1917, which took home the Golden Globe for best movie drama last week, got 10 nods, including for British director Sam Mendes.

Co-producer Pippa Harris said the film, about two young soldiers who have to deliver a lifesaving message across enemy lines, resonated because it went beyond the traditional war movie.

“There is very little blood and gore,” she told Reuters, saying the movie also focused on “friendships that get formed in the heat of battle, the importance of being home, being separated from your family.”

Harris said the nominations overall had something for everyone. “There are stories that feature men front and center stage, but what’s great is that there are also films like Little Women and Parasite which couldn’t be further apart in terms of their approach to filmmaking and subject matter.”

Parasite, a dark satire about the gap between rich and poor, became the first South Korean movie to be nominated in both the best picture and best international film categories. Director Bong Joon Ho also received a nod for best director.

Notable omissions included Robert De Niro, star of The Irishman, Jennifer Lopez for Hustlers, Eddie Murphy for comedy Dolemite is My Name, and Disney’s animated blockbuster Frozen 2. — Reuters

US Treasury drops China currency manipulator label ahead of deal

WASHINGTON — The US Treasury department on Monday dropped its designation of China as a currency manipulator days before top officials of the world’s two largest economies were due to sign a preliminary trade agreement to ease an 18-month-old tariff war.

The widely expected decision came in a long-delayed semi-annual currency report, reversing an unexpected move by Treasury Secretary Steven Mnuchin last August at the height of US-China trade tensions.

Mr. Mnuchin had accused China of deliberately holding down the value of its yuan currency to create an unfair trade advantage, just hours after President Donald Trump, angered at the lack of progress in trade negotiations, had also accused China of manipulating its currency.

The Treasury department had not labeled China a currency manipulator since 1994. Beijing had recently met just one of the department’s three criteria needed for such a designation — a large bilateral trade surplus with the US.

In its latest currency report, the Treasury said that as part of the Phase 1 trade deal, China had made “enforceable commitments to refrain from competitive devaluation” and agreed to publish relevant data on exchange rates and external balances.

Chinese Vice Premier Liu He arrived in Washington on Monday for a White House ceremony to sign the trade deal with Mr. Trump. People familiar with the negotiations said that although the manipulator designation had no real consequences for Beijing, its removal was an important symbol of goodwill for Chinese officials.

US Trade Representative Robert Lighthizer on Monday told Fox Business that the translation of the US-China trade agreement was almost completed and the text of the deal would be made public on Wednesday before the ceremony.

The currency report said the Chinese yuan, also known as the renminbi, had depreciated as far as 7.18 per US dollar in early September, but had rebounded in October and was currently trading at about 6.93 per dollar.

“In this context, Treasury has determined that China should no longer be designated as a currency manipulator at this time,” the report said.

It said, however, China should take decisive steps to avoid a persistently weak currency and allow greater market openness to strengthen its long-term growth prospects.

There was no immediate reaction from Beijing. In August, China’s central bank denied it had intervened to weaken the yuan, and said Washington’s designation of China as a currency manipulator seriously harmed international rules.

Mark Sobel, a former senior Treasury official and adviser to the London-based Official Monetary and Financial Institutions Forum or OMFIF economy policy think tank, said China “was errantly designated at a moment of presidential pique.”

“It should never have happened in the first place,” he said. “China manages, but does not manipulate its currency.”

Mr. Sobel said China’s current account surplus was small as a share of gross domestic product and it had not intervened in currency markets for years. The August move came at a time when the yuan had fallen against the dollar because of market apprehension over Mr. Trump’s “ratcheting up of trade tariffs,” he said.

SWITZERLAND ADDED TO MONITORING LIST
The Treasury report also cited continued concerns about the currency practices of eight other countries — Germany, Ireland, Italy, Japan, Malaysia, Singapore, South Korea and Vietnam — and added a ninth, Switzerland, to its list.

It raised particular concerns about Germany, the world’s fourth-largest economy, which it said continued to have the world’s largest current account surplus and was slipping into recession. It said the German government had a responsibility to undertake tax cuts and boost domestic investment.

The Treasury report said the continued strength of the US dollar was “concerning,” given the International Monetary Fund’s judgment that the dollar was overvalued on a real effective basis.

It said the real dollar remains about 8% above its 20-year average, noting that sustained dollar strength would likely exacerbate persistent trade and current account imbalances for the United States.

US Senate Democratic leader Chuck Schumer, a fierce critic of China’s currency and trade practices, blasted the Trump administration for its decision to “back down” from labeling China a currency manipulator.

“China is a currency manipulator — that is a fact,” Mr. Schumer said in a statement. “Unfortunately, President Trump would rather cave to President Xi (Jinping) than stay tough on China.”

The yuan reached five-month highs earlier on Monday ahead of the expected signing of the trade deal. — Reuters

Airlines update flights after Taal eruption

By Arjay L. Balinbin, Reporter

PHILIPPINE AIRLINES, Inc. (PAL) has cancelled 15 flights to and from Manila on Tuesday to accommodate flights to certain routes that were cancelled recently due to the Taal Volcano eruption.

For its part, Cebu Pacific (Cebu Air, Inc.) said that its operations in and out of Manila’s Ninoy Aquino International Airport (NAIA) went back to “normal” on Tuesday.

AirAsia Philippines (Philippines AirAsia, Inc.) said “further cancellation” of flights were to be expected on Tuesday “to ensure the safety of passengers and aircraft.”

In an advisory, PAL said: “We are in the process of operating replacement flights on certain routes to assist passengers affected by recent cancellations, and in a few cases we are upgrading certain flights to larger-capacity widebody aircraft to deal with the overflow of affected passengers.”

PAL said it had cancelled 15 flights to and from Manila, including the flights to and from Bangkok, Thailand and a flight to Nagoya, Japan.

PAL said it would also arrange replacement flights to accommodate the affected passengers of the said cancellations.

In a separate advisory, AirAsia said: “While flights have gradually resumed, further cancellations are being made to ensure the safety of passengers and aircraft.”

It said AirAsia guests travelling over the next few days should check the status of their flights on the airline’s official website.

Cebu Pacific said that its operations in and out of the NAIA “are now back to normal.”

“Passengers booked on cancelled flights may manage their booking before their scheduled time of departure through the Cebu Pacific website,” it added.

Manila International Airport Authority also announced on Tuesday its second day suspension of the “daily maintenance closure of NAIA’s main runway to give way for recovery flight operations.”

It noted that its runway 06-24 undergoes “derubberizing and degreasing” daily, from 1:30 a.m. to 3:30 a.m.

“We began accepting recovery flights from 10:00 p.m. last night to 4:00 a.m. this morning. We lifted the daily maintenance closure. We will do it again tonight until airlines are able to fully recover,” MIAA General Manager Eddie V. Monreal was quoted as saying in a statement.

NAIA partially resumed operations last Monday after more than 500 flights were affected by the eruption of Taal Volcano.

About 80,000 passengers and 516 flights were affected by Sunday’s volcanic eruption.

Key nominations for the 2020 Academy Awards

NOMINATIONS for the 2020 Academy Awards, the highest honors in the movie industry, were announced on Monday. The awards will be handed out on Feb. 9 at a ceremony in Hollywood.

• BEST PICTURE: The Irishman, Once Upon a Time in Hollywood, Parasite, Marriage Story, 1917, Jojo Rabbit, Joker, Little Women, Ford v Ferrari

• BEST DIRECTOR: Martin Scorsese, The Irishman; Quentin Tarantino, Once Upon a Time in Hollywood; Bong Joon Ho, Parasite; Sam Mendes, 1917; Cho Yeo-jeong, Parasite; Todd Phillips, Joker

• BEST ACTOR: Joaquin Phoenix, Joker; Adam Driver, Marriage Story; Leonardo DiCaprio, Once Upon a Time in Hollywood; Antonio Banderas, Pain and Glory; Jonathan Pryce, The Two Popes

• BEST ACTRESS: Renee Zellweger, Judy; Charlize Theron, Bombshell; Scarlett Johansson, Marriage Story; Saoirse Ronan, Little Women; Cynthia Erivo, Harriet

• BEST SUPPORTING ACTOR: Brad Pitt, Once Upon a Time in Hollywood; Al Pacino, The Irishman; Joe Pesci, The Irishman; Tom Hanks, A Beautiful Day in the Neighborhood; Anthony Hopkins, The Two Popes

• BEST SUPPORTING ACTRESS: Laura Dern, Marriage Story; Margot Robbie, Bombshell; Florence Pugh, Little Women; Scarlett Johansson, Jojo Rabbit; Kathy Bates, Richard Jewell

• BEST ORIGINAL SCREENPLAY: Marriage Story, Once Upon a Time in Hollywood, Parasite, Knives Out

• BEST ADAPTED SCREENPLAY: The Irishman, Jojo Rabbit, Joker, Little Women, The Two Popes

• BEST ANIMATED FEATURE FILM: How to Train Your Dragon: The Hidden World, I Lost My Body, Klaus, Missing Link, Toy Story 4

• BEST DOCUMENTARY FILM: American Factory, The Cave, The Edge of Democracy, For Sama, Honeyland

• BEST INTERNATONAL FEATURE FILM: Corpus Christi, Poland; Honeyland, North Macedonia; Les Miserables, France; Pain and Glory, Spain; Parasite, South Korea

• BEST ORIGINAL SONG: “I Can’t Let You Throw Yourself Away,” Toy Story 4; “(I’m Gonna) Love Me Again,” Rocketman; “I’m Standing With You,” Breakthrough; “Into the Unknown,” Frozen 2; “Stand Up,” Harriet — Reuters

PSBank raises P4.65B via three-year papers

PHILIPPINE SAVINGS Bank (PSBank) raised P4.65 billion from its latest bond issuance, cutting short its offer period on Monday for the three-year fixed- rate bonds due to strong demand.

In a disclosure to the local stock exchange Tuesday, the thrift banking arm of Metrobank Group said they upsized the issue from the initial P3-billion plan as the offer was almost two times oversubscribed.

PSBank said the offer period, which started on Jan. 9, closed on Monday, a week earlier than the initial plan to end it on Jan. 21.

The bonds carry an interest rate of 4.5% per annum with quarterly interest payments. The principal amount will be paid on the maturity date in 2023.

The Ty-led thrift bank said proceeds of the fund-raising activity will be used to finance its future business expansions, particularly for its consumer banking business.

The three-year bonds will be listed at the Philippine Dealing & Exchange Corp. next month, Feb. 4.

The issuance marked the second tranche of PSBank’s P40-billion funding program, following the first issue where the lender raised P6.3 billion.

“Both issuances will give the bank an opportunity to access long-term funding as it further expands its consumer banking business,” the statement read.

PSBank’s net earnings rose 20% in the third quarter of 2019 to P813 million on the back of the nine percent increase in its core revenues which were largely from interest income and fee-based income.

The bank’s shares went up 1.93% or by P1.10 to P58.20 apiece on Tuesday from the previous day’s P57.20 level. — B.M. Laforga

MVP group provides support in Taal relief efforts

COMPANIES and foundations led by businessman Manuel V. Pangilinan have volunteered to provide power, water, communication services and food to communities affected by Taal Volcano’s eruption on Sunday, the group said.

“Aid in the form of power, water, communication, food and relief packs are being deployed to affected communities,” PLDT, Inc. said in a statement on Monday.

The companies include Manila Electric Co. (Meralco), Maynilad Water Services, Inc., and PLDT, which said that the social development arm and corporate foundation of Meralco, the One Meralco Foundation, is providing solar mobile charging stations at the evacuation centers.

Meralco, whose power distribution network in the affected areas was operating normally on Monday except in parts of Tagaytay City and Canlubang, is also coordinating with the Philippine Disaster Resilience Foundation (PDRF) to provide gensets to evacuation centers.

Charging services are also available at PLDT’s Tagaytay office for free.

Maynilad is coordinating with the Department of Public Works and Highways for the deployment of 13 water tankers in the affected areas. It has also partnered with the Department of Social Welfare and Development for the provision of 2,000 6-liter mineral water bottles.

The Makati Medical Center Foundation is providing 2,400 bottles of mineral water in partnership with Le Minerale to affected communities.

“Metro Pacific Tollways Corporation (MPTC) has likewise mobilized its teams to aid in clearing operations. It is currently providing water for windshields of affected CALAX motorists. MPTC is also clearing ashfall at carriageways to ensure safe passage of all vehicles. MPTC would also mobilize relief efforts to affected communities,” PLDT said.

Through its subsidiary Smart Communications, Inc., PLDT has also provided communication support and load credits to the volunteers of the Metropolitan Manila Development Authority who are assisting in the evacuation, rescue and relief of the affected residents in Batangas.

Alagang Kapatid Foundation, PLDT-Smart Foundation (PSF), and Cignal TV are deploying a food truck at evacuation centers in Batangas.

PLDT said affected families at evacuation centers would be provided with relief goods.

In partnership with My Dream in a Shoebox Project, the Makati Medical Center Foundation is providing 8,000 pieces of face masks and 1,500 psycho-social first aid kits.

The PLDT also said that hygiene kits and protector masks would be given to emergency responders teams.

For its part, the Metro Pacific Investments Foundation will distribute 1,000 blankets, 1,000 mats, and 1,500 shirts for both children and adults in the affected areas. — Arjay L. Balinbin

Parasite director Bong Joon Ho says ‘language barrier’ broken after Oscar nod

SEOUL — Parasite director Bong Joon Ho said he was surprised and overjoyed when the film won six Oscar nominations on Monday, a historic first for South Korea’s film industry and a sign that language is no longer a barrier to global success.

Parasite, a dark comedy about the vast gap between the rich and poor in South Korea, snagged a coveted best picture nomination, best director for Bong, and best screenplay in addition to its best international feature nomination.

“Every time they announced the new nominations, it was so thrilling, because we didn’t really anticipate any of this,” Bong told Reuters Television in an interview in California.

Bong had previously discussed the challenges of international films breaking the “language barrier” around the world, but said the nominations suggest those barriers may now be falling.

“We can say that thanks to the internet, social media and these streaming services, the entire society is experiencing less of these language barriers and perhaps Parasite benefitted from that global trend,” he said.

In a video shared online by production company NEON, one of the show’s stars, Song Kang-ho, manages to not spill a cup of coffee as he and others in the room excitedly celebrate.

“The sign you’re a global superstar: You don’t spill your coffee when your film is nominated for Best Picture,” the company said.

REACTIONS FROM OTHER NOMINEES
Oscar nominees expressed a mixture of pride, gratitude and honor on Monday after being short-listed for the 2020 Academy Awards.

The following are some reactions — through statements, telephone calls and social media — to the nominations.

• Adam Driver, best actor nominee, Marriage Story — “I’m honored and incredibly grateful to represent the people who made Marriage Story, and to be included among a list of actors I greatly admire!”

• Leonardo DiCaprio, best actor nominee, Once Upon a Time in Hollywood — “This film in many ways is a tribute to all those who were a part of this industry. Cinema is, and continues to be a powerful form of free artistic expression. This film along with so many others this year were truly original and impactful. I hope, as we progress, we continue to see even more of them.”

• Joaquin Phoenix, best actor nominee, Joker — “I feel honored and humbled to have been nominated by my fellow actors. The Academy’s encouragement helped ignite and sustain my career and I am incredibly grateful for that support.”

• Sam Mendes, best director, original screenplay nominee, 1917 — “I couldn’t be more thrilled. This movie was a labor of love for many people — myself included — so to see it recognized in this way is very moving for all of us. I would like to thank the Academy on behalf of my fellow producers, and on behalf of every single person who put their heart and soul into this film.”

• Martin Scorsese, best director nominee, The Irishman — “I’m honored that our work on The Irishman has been honored by the Academy with these nominations. We put all of ourselves into this picture, a true labor of love, and to be recognized in this way means a great deal to all of us.”

• Laura Dern, best supporting actress nominee, Marriage Story — “It is such an honor to be acknowledged by one’s peers in this extraordinary way. I am so proud of the brilliant writing, directing and the magnificent cast of Marriage Story.”

• Tom Hanks, best supporting actor nominee, A Beautiful Day in the Neighborhood — “I’m honored to be included with the caliber of actors such as Anthony Hopkins, Joe Pesci, Al Pacino and Brad Pitt. It will be a grand night.”

• Robert De Niro, (producer) best picture nominee, The Irishman — “Bringing The Irishman to the screen was a 12-year saga which I wanted to make with my friends and work again with Marty (Scorsese), Joe (Pesci) and Al (Pacino)… It’s great that the picture has been embraced by audiences and is now getting this recognition from the Academy.”

• Cynthia Erivo, best actress nominee and best original song, Harriet — “To receive two Oscar nominations for a film paying tribute to Harriet Tubman, a person whose heart and spirit are the embodiment of courage, makes this morning’s news beyond anything I could have ever imagined. This is more than a dream come true… being asked to co-write and perform the song in the film was the icing on an already wonderful cake.”

• Saoirse Ronan, best actress nominee, Little Women — “I’m just so thrilled that our Little Women has been recognized by the Academy. Greta (Gerwig) made something so special that I’m just thankful to have been a part of, let alone nominated for.”

• Former President Barack Obama, best documentary feature nominee, American Factory — “Glad to see American Factory’s Oscar nod for best documentary. It’s the kind of story we don’t see often enough and it’s exactly what Michelle and I hope to achieve with (our production company) Higher Ground.”

• Kathy Bates, best supporting actress nominee, Richard Jewell — “I am very proud of this film and it was truly an honor to work with the legendary Clint Eastwood on bringing the truth of Richard Jewell to light… My hope is that this film brings the justice and peace Richard and Bobi Jewell deserve by shining a light on their story and his heroism.”

• Amy Pascal, producer of best picture nominee, Little Women — “We are profoundly overwhelmed and honored to have received all these nominations from the Academy, and to have made history by being only the third movie ever to be nominated for best picture that’s written, directed and produced exclusively by women. This film is a testament to the brilliance of Greta Gerwig.”

Todd Phillips, best picture, director, adapted screenplay nominee, Joker — “Joker began as an idea, an experiment really — could we take an ‘indie approach’ to a studio film by inverting it into a character study to reflect the world around us? Explore what we’re seeing and feeling in society, from the lack of empathy to the effects of the absence of love.”

• Petra Costa and Joanna Natasegara, best documentary feature nominee, The Edge of Democracy — “In a time where fascism is spreading like an epidemic, we hope this film can help us all understand how crucial it is to protect our democracies. We are at a time where the personal has become utterly political for so many around the world and I believe it is through stories, language and documentaries that civilizations begin to heal.” — Reuters

BPI eyes P3B from two-year bonds

BANK of the Philippine Islands (BPI) is looking to raise up to P3 billion through the issuance of peso-denominated fixed-rate bonds.

BPI said in a disclosure on Tuesday that the bonds have a tenor of two years and an interest rate of 4.2423% per annum, payable quarterly.

Proceeds from the issue will be used to back BPI’s expansion plans and diversify its funding sources, the lender said.

The bank started offering the bonds on Monday. The offer period is set to run until Jan. 17, and the listing date is set on Jan. 24.

“BPI reserves the right to adjust the timing of any of these dates as it considers appropriate,” it said.

The bank said the bonds have a minimum investment amount of P1 million and in increments of P100,000 thereafter.

Standard Chartered Bank will join BPI Capital Corp. as lead arranger for the issuance. BPI Capital Corp. will likewise be the sole selling agent of the bonds, with Standard Chartered serving as a participating selling agent.

“We are confident that investors will continue to support BPI’s fund-raising initiatives, as backed by the bank’s robust credit metrics,” BPI Treasurer Dino R. Gasmen said in the statement.

The Ayala-led bank booked a net income of P8.29 billion in the third quarter of 2019, jumping 38.6% from its profit in the comparable year-ago period.

For the first nine months of 2019, the lender’s net income was at P22.03 billion, up 29.5% from the P17.01 billion booked in the same period in 2018.

BPI’s shares ended trading at P86.80 apiece on Tuesday, up by 0.35% from its Jan. 10 close of P86.50 each. — L.W.T. Noble

Villar not endorsing any cryptocurrency business

VISTA LAND and Lifescapes, Inc. (VLL) clarified on Tuesday that its chairman Manuel B. Villar, Jr. is not endorsing any cryptocurrency business.

In a statement of clarification sent to media yesterday, Mr. Villar warned the public against a “false social media posting” that claims he is endorsing a cryptocurrency program.

“I have never made any such endorsement nor have I engaged in the said bitcoin trading program. This is obviously a scam and I ask the public to protect themselves from such unscrupulous act,” he said.

Mr. Villar, the richest man in the Philippines who was previously a senator, has a net worth of $5.5 billion based on data from Forbes Magazine.

Aside from VLL, he is also chairman of listed firms Golden Bria Holdings, Inc.; Vistamalls, Inc.; and AllHome Corp.

Shares in the four firms at the stock exchange ended mixed on Tuesday: VLL was down 5 centavos or 0.66% to P7.48 each, Golden Bria lost P1.60 or 0.36% to P438.20 each, Vistamalls gained 4 centavos or 0.68% to P5.88 each, while AllHome inched up 2 centavos or 0.17% to P11.54 each. — Denise A. Valdez

New UK law to combat dirty money in art market

THE UK art market is now more transparent.

Starting last Friday, art businesses registered in the country, including galleries, auction houses and freeport operators storing high-value items, will have to verify client identities on transactions exceeding €10,000 ($11,000), according to the regulations approved by Parliament shortly before Christmas. The veracity of such deals also will have to be confirmed to ensure they aren’t part of money-laundering schemes.

The UK has been a magnet for dirty money. Billions of dollars have illicitly moved through 86 financial institutions, 81 law firms, 62 accountants, and more than 2,200 companies in Britain and its overseas territories, according to a recent report by Transparency International UK, the London-based arm of the global anti-corruption group.

“Some galleries may be blissfully unaware that this happened,” said Kenneth Mullen, a London-based partner on the intellectual property and technology team at law firm Withersworldwide. The regulations “were passed the very last minute,” he said. “It’s given organizations very little time to react.”

The UK is the world’s No. 2 art market, accounting for more than a fifth of $67.4 billion in global sales in 2018, according to a report last year from Art Basel and UBS Group AG.

STRINGENT RULES
The new anti-money laundering regulations also will target cryptocurrencies and rental properties, Mullen said. They stem from more stringent rules mandated by the European Union, which requires its members to implement them as national laws by Friday’s deadline. Germany has passed similar legislation, Mullen said.

Sotheby’s and Christie’s have had compliance processes for years. Now galleries will have to follow suit, which will be more of a burden for small and mid-size companies that need to train staff and set up AML operations, Mullen said.

Regulated entities will have to register with HM Revenue & Customs and conduct compulsory “client due diligence,” Mullen said. If acting for a company, trust or partnership or client, participants will need to establish the relevant ownership structure and then identify the “ultimate beneficial owner.”

Individuals will have to be checked against lists of sanctioned individuals or politically exposed persons, Mullen said.

Red flags, indicating a high-risk transaction, may include cash payments, gaps in provenance, and refusal to identify the buyer or seller. — Bloomberg

Citigroup’s corporate banking arm aims to pick up steam this year as market cools down

WHEN CITIGROUP, INC. combined businesses that cater to big companies in 2018, management wanted dealmakers, traders and traditional corporate bankers to combine forces and propel Citi toward the top of Wall Street market-share rankings.

The third-largest US bank has made some progress. Its overall market share across advisory, syndicate lending and equity and debt origination edged up to 5.1%, from 4.9% in 2018. But Citi’s rankings in those business lines were unchanged in 2019, according to Dealogic data.

In December, bankers from Citigroup’s capital markets, investment banking and corporate lending teams gathered for their first full-year review meetings since the groups were combined. The tone in the meetings was positive, executives said, but after a year of stagnant rankings the unit still has a lot of work to do.

Citigroup has struggled to gain traction since it has yet to snatch away meaningful market share from powerful incumbents like JPMorgan Chase & Co., Goldman Sachs Group Inc., and Morgan Stanley.

And, as it moves along with its strategy in 2020, the outlook is not great, industry insiders and analysts said.

Trade wars, recession fears and international events — ranging from Brexit to Hong Kong protests to political chaos in Venezuela to the United States killing an Iranian leader this month — have unpredictable outcomes that affect prices of goods and services in local markets, as well as global companies’ ability to acquire or transact between them.

The geopolitical uncertainty is also keeping some corporate clients, who would otherwise be looking for deals or other financing, on the sidelines, executives have said.

However, Citi’s expertise as a deeply international bank that helps companies grow and do business across borders, may not position them well for the current business trends, said Marty Mosby analyst at stock broker-dealer Vining Sparks.

“The world that was becoming more and more integrated is becoming less integrated and becoming a little bit more isolated,” he said. “And that’s not to Citigroup’s advantage.”

The values of global dealmaking and initial public offerings industry wide are each expected to drop more than 20% this year according to estimates by law firm Baker McKenzie.

“The investment banking business has never been more demanding,” said Tyler Dickson, the New York-based co-head of Citi’s Banking Capital Markets and Advisory group.

Citigroup has prided itself on being the most global of the big banks for decades, but after the 2007-2009 financial crisis, it pulled back from many regions and businesses. Even so, the bank still operates in 98 countries, partly to ensure that multinational clients have access to markets in which they operate.

Citigroup executives say they can win business from big corporations, even if the overall industry revenue pie shrinks.

Last year, the bank was able to grow the transaction value of the deals it advised by 11% despite the wallet being down 2% for the industry, according to Refinitiv data. Citigroup can still capture market share even with bleak 2020 outlook, Mr. Dickson said.

Mr. Dickson is co-head alongside Manolo Falco, who is based in London. On the first anniversary of their professional marriage, the two sent balloons and a cake, respectively, to the other’s office to celebrate a job well done.

The bank is focused on getting more business from existing corporate customers and adding new companies that fit into a certain rubric, executives told Reuters.

That includes technology and health care companies, as well as small-but-promising start-ups that might grow fast.

But the bank is not looking to gain share among smaller mid-sized companies that competitors including JPMorgan Chase, Bank of America or Goldman Sachs are targeting.

“Between the two growth paths, I like that path better,” said Cary Kochman, Citi’s co-head global head of M&A. — Reuters

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