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MRC Allied starts work on mall’s solar rooftop

MRC ALLIED, Inc. has broken ground on a 1.1 megawatt (MW) solar photovoltaic rooftop project in one of the malls in Mindanao through its subsidiary Menlo Renewable Energy Corp. (MREN), the listed company said on Tuesday.
“Under the MoA (memorandum of agreement), MREN will be the project developer and owner of the solar facility while a private entity, owning and operating the mall, will be the power off-taker,” MREN said in a statement.
It did not identify the mall except to say that it is one of the “major” malls in southern Philippines.
The solar power project will have an estimated investment of P67.4 million through a 20-year cooperation among the parties from the issuance of the acceptance certificate, MRC said citing the MoA.
MRC previously said that its renewable energy subsidiary had signed a memorandum of agreement for the development, design, construction and installation of at least 1.1-MW solar photovoltaic (PV) rooftop system as part of the pilot project of its ambitious solar PV program.
The company, which was previously focused on property development, is expanding its solar energy footprint through the development of the solar PV rooftop project as part of its 200-MW target capacity for the next two years, MRC said.
In December last year, MRC said it expected to push through in early 2019 the issuance of new shares amounting to around P1 billion to fund its renewable energy development projects.
The fund raising was previously stalled because of issues with the Securities and Exchange Commission relating to the use of the proceeds.
In October, MRC announced that it was reorganizing by consolidating under the listed company all its assets and portfolio while its operating subsidiaries will be implementing the projects.
On Tuesday, shares in MRC were unchanged at P0.405 each. — Victor V. Saulon

DNL targets double-digit earnings growth this year

LISTED plastics and oleochemicals manufacturer D&L Industries, Inc. (DNL) looks to continue its double-digit profit growth this year, after increasing its earnings by 10% in 2018.
DNL disclosed on Tuesday that net income reached P3.19 billion in 2018, higher than the P2.91 billion it posted the year before. This came amid a four percent decline in revenues to P26.54 billion due to lower coconut oil prices.
“Coconut oil prices are still down. Selling prices have come down a lot because of the lower average selling price,” DNL President and Chief Executive Officer Alvin D. Lao said in a press briefing in Makati City yesterday.
DNL said average prices of coconut oil declined by 39% last year, while palm oil prices also shed 14%.
High margin specialty products accounted for 63% of the company’s revenues, while commodities, or refined vegetable oils and biodiesel, provided the remaining 37%.
Meanwhile, exports contributed 24% to revenues, but there was an eight percent decline in peso terms due to the lower commodity prices.
DNL’s net income was flat at P785 million in the fourth quarter, after a 19% decline in revenues to P6.37 billion due to accelerating inflation during the period.
Despite the lower revenues, blended gross profit margin hit a high of 22% for the fourth quarter, bringing its full-year margin to 19%. Mr. Lao attributed this to the company’s ability to pass on price changes to customers.
“We have elections this year, so that will be positive for our business…We should see better results this year 2019,” Mr. Lao said.
“Our target is double-digit growth in net income, so the minimum is 10%….We don’t see coconut oil prices remaining low for long. When prices recover, then revenues should go up as well,” he added.
The company is also banking on inflation easing as well as improving trade relations between the United States and China to lift its business this year.
DNL will push through with its P8-billion expansion at its facility in Tanauan, Batangas this year, which will triple its capacity in the next two to three years. This is seen to ramp up the company’s export business, since it will have to export half of total production as per rules for Philippine Economic Zone Authority zone locators.
It will further give the company space to increase its production in the following years, as its utilization rate is now at about 70% across five plants in Metro Manila and one in Laguna.
Shares in DNL rose 0.36% or four centavos to close at P11.30 each at the stock exchange on Tuesday. — Arra B. Francia

AirAsia launches venture capital fund to back start-ups in Southeast Asia

MALAYSIAN budget carrier AirAsia Group said on Monday it was launching a venture capital fund in the United States to invest in start-ups seeking to enter or expand in Southeast Asia.
The fund, called RedBeat Capital, will focus on post-seed-stage startups in travel and lifestyle, financial technology, artificial intelligence and cybersecurity.
AirAsia is partnering with San Francisco-based 500 Startups, which invests in young fast-growing companies.
RedBeat Capital will have a base in San Francisco and access to 500 Startups’ deal flow, AirAsia said.
The airline group has initially allocated about $10 million, and the fund has already invested in a couple of companies, Aireen Omar, deputy chief executive, told Reuters.
AirAsia, which pioneered budget air travel in Asia, is broadening its reach to include a payments company, logistics, food and beverages brands and a loyalty program.
A year ago, it placed these lifestyle assets including the BIG Loyalty scheme and a Wi-Fi service, in which it typically has stakes of 80-100%, under RedBeat Ventures.
The new fund RedBeat Capital will house smaller investments in start-ups of anything up to around 20%, Ms. Omar said.
Together, these could be listed separately in future.
“We don’t have a timeline (for a listing) yet because our focus is to build a business fast,” she said in an interview.
AirAsia has been trying to re-invent itself as a travel and technology firm to exploit data and offset cyclical volatility in airline earnings.
The group last week posted a fourth-quarter net loss, its first quarterly loss in over three years, citing higher fuel prices and lease costs.
Non-flying ancillary revenues currently make up about 20% of group revenue.
The digital drive can improve ancillary revenues by using machine learning to better understand consumer trends, Ms. Omar said, adding that investments via the new fund should also help the core business.
“I would imagine that with what we are building here, the ancillary part will be increasing to more than 20% and it is not impossible for it to reach 50% at some point in the future,” Ms. Omar said.
Southeast Asia, with a young population and more internet users than the United States, but relatively little exposure in Silicon Valley so far, is among the fastest-growing tech markets, according to 500 Startups.
“We have noticed our own partners turning an eye towards Southeast Asia. It seems like a greenfield,” the start-up accelerator’s Chief Executive Christine Tsai told Reuters.
Some network carriers such as Singapore Airlines are also ramping up investments in digital technology. — Reuters

PSBank books flat net earnings in 2018

PSBank
PHILIPPINE Savings Bank’s net income was steady in 2018.

PHILIPPINE SAVINGS Bank’s (PSBank) net income was steady in 2018 as its lending and deposit-taking businesses continued to expand.
In a regulatory filing on Tuesday, the savings arm of Metropolitan Bank & Trust Co. reported that it booked a net income of P2.7 billion last year, flat from the previous year’s level.
This translated to a return on equity of 11.4% and a return on assets of 1.2%.
The bank’s net interest income grew by 2.3% year-on-year to P11.3 billion in 2018.
Total loans reached P156.7 billion at 2018’s close, up 7.1% from P146.3 billion in the comparative year-ago period.
On the funding side, deposits expanded 6.2% to P200.7 billion last year from 2017’s P188.9 billion.
Overall, PSBank’s assets stood at P237.7 billion in 2018, up 6.4% from the P223.3 billion recorded the previous year.
The lender’s capital adequacy ratio stood at 13.9% while its common equity Tier 1 ratio was at 11.3%, well above the central bank’s minimum requirements.
“PSBank proactively responded to last year’s challenges brought about by higher interest rates and inflation by focusing on sales and improving on its operating efficiencies, without compromising its commitment in providing excellent customer service,” PSBank President Jose Vicente L. Alde was quoted as saying in the statement.
The Bangko Sentral ng Pilipinas fired off five consecutive rate hikes last year totalling 175 basis points (bp) to arrest surging inflation, which averaged 5.2% in 2018. This was marked with back-to-back 50-bp tightening moves just as prices were surging to multi-year highs.
Easing inflation — which stood at a better-than-expected headline print of 3.8% in February — is seen to spur consumer spending.
In September, the bank announced it will issue P10 billion worth of medium-term notes to “give PSBank an opportunity to access medium-term and stable funding as the bank further expand its consumer banking business.”
Prior to this, it raised P5.08 billion in August through the issuance of long-term negotiable certificates of time deposits, which carry a 5% coupon.
In January, it also raised P8 billion via a stock rights offer, selling 142.9 million common shares priced at P56 apiece. — K.A.N. Vidal

Solaire operator nets P7.2 billion in 2018

BLOOMBERRY Resorts Corp. grew its attributable profit by 18% in 2018, driven by higher revenues across both gaming and non-gaming segments.
In a regulatory filing, the owner and operator of Solaire Resort and Casino reported a net income attributable to the parent of P7.19 billion, higher than the P6.07 billion it delivered in 2017.
This came on the back of a 14% uptick in consolidated net revenues to P38.22 billion.
“I am pleased to report that Bloomberry continues to be a trailblazer in the Philippine gaming and entertainment scene with our world-class integrated resort offering, Solaire Resort and Casino, delivering record revenues and profits in 2018,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said in a statement.
Total gross gaming revenues (GGR) at Solaire climbed 14% to P50.97 billion, as VIP volumes hit a record high of P810.23 billion. VIP win rate stood at 2.69%, resulting to a VIP GGR of P21.82 billion, five percent higher year on year.
With this, promotional allowances and contra accounts as percentage of GGR went down to 32%, from 34% in 2017, even as the cost increased by 10% to P16.63 billion.
The mass market segment also recorded higher volumes for the year, with mass table drops rising by 22% to P44.89 billion and electronic gaming machine coin-in climbing 15% to P211.88 billion.
With this, mass table revenues firmed up by 27% to P15.26 billion, while EGM revenue gained 27% to P13.9 billion.
For its non-gaming segment, Bloomberry clocked in an 11% increase in revenues to P6.62 billion. The company benefited from higher hotel occupancies at the Bay and Sky Towers at 92.6%, as well as more productions in the Theatre at Solaire and higher rental income from tenants at its retail strip called The Shoppes.
Meanwhile, Bloomberry’s operations in Korea through Jeju Sun Hotel & Casino delivered P484 million in gaming revenues, despite gambling prohibitions for locals.
“We look forward to 2019 and to sowing the seeds of our future growth, as we anticipate to break ground on our second integrated resort in Quezon City this,” Mr. Razon said.
Bloomberry will start the construction of its second integrated resort and casino in the country by the middle of 2019. Set to be located within Vertis North, Quezon City, the company expects to open the property by 2022.
Shares in Bloomberry soared 2.33% or 26 centavos to close at P11.40 each at the stock exchange on Tuesday. — Arra B. Francia

2 Lunas and a Hidalgo


“PHILIPPINE art history is never static. It remains in constant flux,” remarked Salcedo Auctions director Richie Lerma, speaking about the emergence of three works by classic Filipino artists.
Following the sale of the boceto for the Spoliarium in September last year, Salcedo’s first auction for 2019 — Important Philippine Art including Important Philippine Furniture and Important Philippine Tribal & Ethnographic Art — on March 9, will have as its centerpieces Juan Luna’s boceto for The Death of Cleopatra, the painting of The Hunting Party, and Felix Resurreccion Hidalgo’s Draped Nude, Reclining in a Forest Landscape.
THE DEATH OF CLEOPATRA
In 1887, Juan Luna was taken to Spain as an apprentice of his professor Alejo Vera. At the time of Cleopatra’s creation, Luna was enrolled at the Real Academia de Bellas Artes de San Fernando (Royal Academy of Fine Arts of San Diego) in Madrid. Inspired by French painter Jean-Andre Rixen’s artwork of the same title (in French) from 1874, The Death of Cleopatra was Luna’s silver prize-winning entry at the Madrid Exposition in 1881. The prize came with the work’s acquisition by the Spanish government. The painting is currently part of the permanent collection of the Museo del Prado in Madrid.
The boceto — a preliminary sketch — for The Death of Cleopatra belonged to the late Filipino art collector Dr. Eleuterio “Teyet” Pascual. According to Mr. Lerma, its inclusion in the Luna Hidalgo retrospective at the Metropolitan Museum of Manila in 1988 and publication in the exhibition catalogue establish its authenticity.
“[It is] further validated by the National Museum through a Certificate of Authenticity that it issued [and] signed by National Artist [for Visual Arts] Jose Joya, then chairman of the authentication panel. The certificate’s control number is 94-1058,” Mr. Lerma wrote in an e-mail to BusinessWorld.
According to Mr. Lerma, the boceto was acquired from Dr. Pascual by the current owner in 1990, who contacted Salcedo Auctions late last year. The current owner offered Cleopatra after the successful of the sale of the Spoliarium boceto.
“The boceto is the missing art historical link between the painting, according to Prado Museum historian Carlos Navarro, influenced Luna’s 1881 award-winning work,” Mr. Lerma wrote, referring to the relationship between the pose of Luna’s Cleopatra and Rixen’s La Mort de Cleopatre.
As written in the Revelations: Important Philippine Art booklet by Salcedo Auctions, Mr. Navarro wrote in his report: “… the departed queen’s arm dangles from the edge of her bed, which is marked in contrast to the elegant placement of her arms to her side in Luna’s 1881 entry to the Madrid Exposition.”
Mr. Lerma mentioned that the boceto, unlike the two other paintings, Luna’s The Hunting Party and Felix Resurreccion Hidalgo’s Draped Nude, was not among those works examined in the Art Analysis and Research in London.
THE HUNTING PARTY AND DRAPED NUDE
Luna’s The Hunting Party (1890) — which depicts two men, one on horseback and the rider’s groom, surveying a field from a hill — came from the estate of the late Doña Maria Nuñez Rodriguez (1911-1992), widow of Don Francisco Vazquez Gayoso. It specifically came from the branch of her family that formerly owned Luna’s painting España y Filipinas (1886) which is currently part of the collection of the National Gallery of Singapore. Don Goyoso inherited the paintings from his father, Don Jose Vazquez Castiñeira, then mayor of Sarria, a northern Spanish town, in the late 19th century, who is also connected to the providence of the Spoliarium bocetto.
Felix Resurreccion Hidalgo’s Draped Nude, Reclining in a Forest Landscape — a painting of a nude maiden laying on a rock with her lower half covered by a red cloth — also came from the same family.
In Salcedo Auctions’s pamphlet Revelations: Important Philippine Art is a photo of the reception area of the home of one of Doña Rodriguez’s heirs where one can see Hidalgo’s painting hung adjacent to Luna’s España y Filipinas.
The descendants of Doña Maria Nuñez Rodriguez contacted Salcedo Auctions regarding the ownership of the two other paintings at the same time that they were discussing the ownership of España y Filipinas and the Spoliarium boceto.
“They requested Salcedo Auctions to keep the [existence of the] two other paintings confidential until after the sale of the boceto for Spoliarium,” Mr. Lerma wrote.
THE IMPORTANT DETAILS
Mr. Lerma wrote that the laboratory report from London’s Art Analysis & Research compared the brush strokes, style, and subject matter of both paintings with other acknowledged works of the painters.
The Draped Nude was compared with the freehand sketch of a similar image in a studio setting from 1880, a work that is part of the BPI art collection.
Dr. Jilleen Nadolny, principal investigator at Art Analysis and Research, noted in her report: “The figure and the lighting are very much the same as the present painting, as is the way the forms are modelled. As seen in the cross-sections taken in the present picture (freehand sketch), the artist was working in a layered manner, building up colors and form by the super-positioning of thin layers, as well as by using thick painterly applications.”
As for The Hunting Party, pentimenti or “changes of significance in the composition or orientation of the painting” show that the painting is by Luna. It was compared to Luna’s Los Voluntarios (1896) and España y Filipinas.
Ms. Nadolny noted that “Observations using the naked eye show the riders in each piece to be very closely hewn… each one donning gun straps across their chests, the only difference being the raised arm and the bare head of the rider of The Hunting Party…”
The paintings were examined under UV light and hyperspectral imaging in order to establish the age of the paints used. Mr. Lerma wrote: “the paintings were examined not only under UV light, but also through hyperspectral imaging, which is essentially imaging the short-wave infrared whereby different color images are obtained to show details of the painting not seen by the naked eye but that reveal the artist’s brushwork, and use of pigments and their distribution,” he explained.
The Hunting Party and Draped Nude have never been transported to the Philippines until today,” he wrote. In a subsequent interview with BusinessWorld last week at the Salcedo Auctions showroom, Mr. Lerma mentioned that both paintings arrived in the country in January this year.
THE AUCTION WEEKEND
Aside from those three paintings, the auction on March 9 includes artworks by other Filipino artists such as Bencab’s Sabel (2008), an untitled marble sculpture by Napoleon Abueva, and Philippine Folk Dances by Carlos Botong Francisco.
Also up for bid are antiques and furniture from the 19th and 20th century include a kamagong and narra tambol aparador (dresser) from the second quarter of the 19th century, a late-19th century baroque and rococo-inspired designed bishop’s chair, and an early to mid-20th century hagabi bench carved out of a single tree trunk.
On March 10, Salcedo will conduct an auction focusing on jewelry and timepieces. Its 67 lots will include a De Capricho three-strand seed pearl, cabochan ruby, diamond, sapphire and emerald necklace set in 14-karat yellow gold; a Rene Boivin 18-karat yellow gold ring and bracelet set; a Patek Philippe Cabriolet Gondolo 18-karat two-color gold square wristwatch; a Dubey & Schaldenbard “Grand Dome” Limited Edition No. 2 wristwatch (a very rare 18-karat rose gold chronograph wristwatch with an elaborately engraved skeletonized open case back); and a 39mm Rolex Daytona “F Series” produced in 2004.
The auctions will be held at the Salcedo Auctions showroom in Makati City.
The online catalogue is available at www.salcedoauctions.com. Auction pieces are on preview at the showroom at Three Salcedo Place, Makati City daily from 10 a.m. to 6 p.m. until March 8. For inquiries, e-mail info@salcedoauctions.com or call 659-4094, 823-0956, or 0917-894-6550. — Michelle Anne P. Soliman

Gender gap in remittance senders narrows

THE GENDER GAP among senders of remittances to the Philippines narrowed in the last four years, even as female overseas Filipino workers (OFW) tend to earn less than males, a study commissioned by WorldRemit showed.
A survey of 1,000 Filipino customers of the digital remittance company showed that the number of female OFWs who sent money home made up 35% of WorldRemit’s clients in 2018, up from just a 25% share in 2014.
In contrast, the share male OFW customers of WorldRemit shrank to 65% last year from 75% in 2014, narrowing the gender gap to 30% in 2018 from the 50% tallied in 2014.
The study also showed that despite males outnumbering females in terms of customer count, female OFWs remitted a larger amount of their income compared to their male counterparts, citing education as the most important reason for sending remittances.
However, WorldRemit did not disclose the breakdown of remittances by female workers vis-à-vis male OFWs.
“Evidence suggests that, although female migrants tend to earn less than their male counterparts, they send a higher proportion of their income home more frequently,” WorldRemit said in a statement on Tuesday.
Michael Liu, WorldRemit managing director for Asia-Pacific, said ensuring digital inclusion for financial services for Filipino women is “critically important” as families, businesses and local economies thrive when women thrive as well.
“Our data show that women play an increasingly vital role in development of The Philippines by sending money home to support education, cover healthcare costs, make investments, and more,” Mr. Liu was quoted as saying in the statement.
Of the 10 million OFWs, 55% are female, with many of them living in countries such as the United States, Australia and New Zealand, WorldRemit said.
Central bank data showed that money sent home by Filipinos reached a record $2.849 billion in December, up 3.9% from the inflows recorded in the same month in 2017. This brought 2018’s total inflows to $28.943 billion, up 3.1% year-on-year.
Remittances from OFWs make up about 10% of the country’s gross domestic product.
In 2018, the US, Saudi Arabia, the United Arab Emirates, Singapore, Japan, the United Kingdom, Qatar, Canada, Germany, and Hong Kong accounted for 79% of total flows.
WorldRemit offers digital remittance services to Filipinos located in over 50 countries, allowing customers to send funds home through its mobile application or website. It processes over 1.3 million transactions monthly to over 145 destinations, including the Philippines. — KANV

MPIC hospital unit plans to raise up to P20B in fresh capital

THE hospital unit of Metro Pacific Investments Corp. (MPIC) is looking to raise P15-20 billion in fresh capital in the next two years, to support its plan of having 30 to 40 hospitals in the future.
MPIC Chief Finance Officer David J. Nicol said the parent company is evaluating whether Metro Pacific Hospital Holdings, Inc. (MPHHI) should pursue an initial public offering (IPO) or private placement to secure the funds.
“We are still looking at some idea of bringing in some external money into the hospital’s portfolio. Whether we do that with a private placement or IPO — we’re evaluating,” Mr. Nicol said in a press briefing in Makati on Tuesday.
“We could bring in somewhere between P15-20 billion,” he added.
The company has been assessing whether to proceed with an IPO as early as 2015. Mr. Nicol noted that there are advantages to an IPO, such as tax efficiencies and the amount they could raise.
“But it brings certain drawbacks in team dynamics, and the way the relationships work with the doctor partners and the hospitals. We’re examining both,” Mr. Nicol explained.
MPHHI currently has 14 hospitals offering about 3,200 beds under its network. The company targets to further increase this network to 5,000 beds.
“We are now invested in the larger hospitals. So that means we will now be acquiring smaller hospitals. Two thousand beds could mean about 15 to 20 hospitals,” MPHHI President and Chief Executive Officer Augusto P. Palisoc, Jr. said in the same briefing.
The hospitals under MPHHI’s portfolio include Makati Medical Center, Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, Asian Hospital, De Los Santos Medical Center, Manila Doctors Hospital, Marikina Valley Medical Center, Inc., and Dr. Jesus C. Delgado Memorial Hospital.
The company also has interest in Davao Doctors Hospital, Riverside Medical Center in Bacolod, Central Luzon Doctors Hospital in Tarlac, West Metro Medical Center in Zamboanga, Sacred Heart Hospital of Malolos, Inc. in Bulacan and St. Elizabeth Hospital, Inc. in General Santos City.
MPIC Chairman Manuel V. Pangilinan said the group is also interested in acquiring Ortigas-based hospital The Medical City, which is currently having ownership disputes between its chief executive officer, Alfredo R.A. Bengzon, and director and treasurer, Jose Xavier B. Gonzales.
“We’re just waiting for the circumstances to unfold so we can pursue that aggressively,” Mr. Palisoc said.
MPHHI said revenues grew by 14% in 2018, following an 8% uptick in out-patient visits to 3.32 million and 11% increase in in-patient admissions to 193,824. — Arra B. Francia

Energy dep’t identifies 8 ‘ailing’ electric cooperatives; Philreca criticizes Cusi

THE Department of Energy (DoE) has reduced to eight from 17 the number of electric cooperatives that are “ailing” and have failed to provide the required services, leaving them open to a possible takeover by private entities.
“Eight ’yung lumalabas. Kinakausap namin para maayos ’yung system. Wala tayong nire-revoke (There appears to be eight. We’re talking to them to fix their system. We have not revoked [any franchise].),” Energy Undersecretary William Felix B. Fuentebella told reporters on Tuesday, about a month after the DoE secretary ordered a review of the cooperatives’ financial and technical performance.
He identified the eight as the electric cooperatives (ECs) in Basilan, Sulu, Tawi-Tawi, Ticao, Maguindanao, Abra, Lanao del Sur and Masbate.
Mr. Fuentebella said private entities had been targeting the ailing cooperatives to have their franchises revoked, leading to a possible takeover.
Sinasabi ni Sec. [Alfonso G. Cusi] Cusi mag-concentrate tayo sa ailing [ECs] and at the same time, paano natin maayos ’yung system kung ano ’yung best sa kanila. (Secretary Alfonso G. Cusi has been saying that we should concentrate on the ailing ECs, and at the same time look at how we can fix their system and find what’s best for them.),” he said.
Mr. Fuentebella said they will submit a report to Mr. Cusi, who will then decide on the next course of action. The results of the review is expected within the first half.
Meanwhile, as the DoE pursues the review of the ECs financial and technical performance, the cooperatives called for Mr. Cusi’s resignation.
Philippine Rural Electric Cooperatives Association, Inc. (Philreca), which has 121 member-ECs nationwide, claimed that Mr. Cusi is “incompetent and ignorant of the law.”
It pointed to his alleged “biases and pre-conceived negative notions against electric cooperatives; preference to private for-profit corporations; abuse of power; lack of genuine knowledge regarding rural electrification and cooperativism, and failure to recognize the success and gains of rural electrification and development not just because of the government through the National Electrification Administration (NEA) but most especially because of electric cooperatives commissioned and considered implementing arm of the government.”
Separately, NEA Administrator Edgardo R. Masongsong has called on the leaders of the cooperatives and the officials of the DoE “to engage in a dialogue and find bases of unity and work together to reconcile their respective policy positions on issues that are relevant to an industry that affects the lives of 104 million Filipinos.” — Victor V. Saulon

More int’l acts in 5th improv fest

FOR its fifth year, the biennial Manila Improv Festival will feature 58 improv acts from all over the world, performing from March 27 to March 31 at the Philippine Educational Theater Association (PETA) Theater Center in Quezon City.
Improv is a form of theater in which most or all of what is performed is unplanned or unscripted.
“This is the most international festival we’ve had yet, with special shows that celebrate and embrace the roots of the individual performers,” festival producer Gabe Mercado said in a press release.
This year’s festival will have an all-Latino show, a French show, an Indians of Singapore show, and an LGBTQ show among many other acts.
“It’s also a result of us travelling a lot. For the first time we have Latin American groups because we went to the Columbia Improv Festival,” Mr. Mercado told BusinessWorld during the launch on Feb. 20 at the PETA Theater Center.
“When we were there we realized we had so much in common with Latin American groups,” he said, noting that much like Filipinos, the Latin American groups also love having music accompany their improvisational acts.
This year’s festival will also see groups and individual performers from Israel, Singapore, Hong Kong, Japan, Korea, Thailand, Australia, the United States, Spain, and France.
“With the huge number of unscripted and unrehearsed performances, you have a whole variety: some of them are comedy, some of them are dramatic, some of them are short-form which looks like games, some of them are a long-form, and some of them are musical. So I guess the best analogy is to think about it like a music festival with different kinds of unscripted performances,” Mr. Mercado said.
The Manila Improv Festival is considered one of the major improv festivals in the world and Mr. Mercado said that Manila is a hot spot in the improvisational theater scene as “Filipinos are the best audiences,” he said, quoting foreigners who have performed in the country.
“It is a new world to play for Manila. Manila loves — everything. They love it when you sing. They love it when you emote. They love it when you are funny. They love it when you are sad. They love,” Prescott Gaylord, an improv performer from Singapore, was quoted as saying in the release.
But aside from showcasing improv talents from all over the world, Mr. Mercado said that the festival is also a way to introduce improv to new audience members who they hope will get hooked on improv.
Aside from performances, the Manila Improv Festival is also hosting workshops led by local and international performers, and a series of talks titled Huntahan which seek to create spaces not just for performance but also for necessary dialogue. Among the topics are: producing an arts festival, discrimination in the artistic community, and the improvisational traditions around the world.
The 5th Manila Improv Festival will be held from March 27 to 31 at the PETA Theater Center in Quezon City. Tickets are available online via https://www.ticket2me.net/. For more information e-mail thirdworldimprov@gmail.com. — Z. B. Chua

Malaysia’s central bank holds rate, sees ‘steady’ economic growth

MALAYSIA kept its key rate unchanged on Tuesday.

KUALA LUMPUR — Malaysia’s central bank kept its key interest rate unchanged on Tuesday, as expected, expressing confidence that the economy can stay on a “steady growth path” despite multiple risks.
Bank Negara Malaysia (BNM) left the overnight policy rate at 3.25%.
At that level, it said, monetary accommodativeness “is consistent with the intended policy stance.”
All 13 economists polled by Reuters had forecast BNM would hold its benchmark rate.
BNM raised its key rate in January 2018 by 25 basis points to “normalize” monetary policy. It was the first increase since 2014, and the first rate change since July 2016’s 25 basis point cut on uncertainty surrounding Britain’s Brexit vote.
The central bank outlined continued risks from unresolved trade tensions, heightened uncertainties on the global and domestic fronts and prolonged weakness in commodity-related sectors.
“Support from the external sector is expected to soften, in tandem with the moderating global growth momentum,” it said.
Malaysia’s full-year 2018 growth was 4.7%, just below the government’s 4.8% forecast but far below 2017’s 5.9%.
The government forecasts 2019 growth of 4.9%.
CHALLENGING OUTLOOK
Malaysia reported better-than-expected export growth of 3.1% in January, but it was slower than the previous month on falling palm oil shipments.
Demand for Malaysian exports has been resilient, but the US-China trade war remains a major factor that could weigh on Malaysia’s growth, economists say.
Views on the course ahead for interest rates vary.
Julia Goh, a Malaysia-based economist with UOB Bank, said Tuesday’s statement had “a stable tone, although we sense a little bit of a dovish growth outlook” depending on how the United States-China trade dispute plays out.
Capital Economics said BNM may need to cut its rate in the third quarter as the country faces weak price pressures and a poor growth outlook.
Growth is expected to slow to 4% this year, “with weaker exports and tighter fiscal policy likely to act as the main drags on the economy,” the consultancy said in a note.
“We think it is only a matter of time before the central bank starts to loosen monetary policy.”
OCBC, in a note before Tuesday’s decision, said it sees BNM as “static for 2019, even if a preference for a more dovish policy inclination may start to emerge”.
The central bank expects inflation to be broadly stable compared to last year, dependent on global oil prices.
Full-year headline inflation rose 1.0% in 2018. The consumer price index fell 0.7% in January from a year earlier, the first decline since November 2009. — Reuters

US options markets take beating in Barclays trader’s criminal manipulation case

ALLEGATIONS OF criminal market manipulation against a Barclays Plc foreign-exchange trader were tossed in the middle of a trial by a judge, who determined that US options markets are more akin to a poker game in “the Wild West” than one governed by clearly defined rules of trust.
The judge took the rare step of shutting down the trial of Robert Bogucki before it reached a jury. The ruling in favor of the head of Barclays foreign-exchange trading in New York is a setback for US prosecutors who’ve struggled in a broader crackdown targeting individual bankers for currency market manipulation.
US District Judge Charles Breyer in San Francisco concluded there’s no way, based on the case the government built, that jurors could conclude that London-based Barclays or Bogucki owed Hewlett-Packard Co. — whose options he was trading — a duty of trust or confidence.
“The parties bluffed and ‘BS-ed’ each other, operated as principals, looked out for their own interests, and understood the other party to be ‘posturing,’ rather than providing strictly true information,” Breyer wrote in his ruling.
Prosecutors argued that Bogucki depressed the value of Hewlett-Packard’s options by front-running, or trading for the benefit of the bank’s own books, ahead of its handling a massive unwind of similar options for HP, thereby profiting the bank at the company’s expense.
The judge’s decision to pull the plug on the prosecution reflected doubts that had been gnawing at him as the trial progressed.
“I’m having a hard time to see that the criminal law is really addressed to this sort of thing, this sort of practice, especially when the practice seems to be so, little bit, Wild West out there in terms of options trading,” Breyer said during the middle of the trial, after the jury had gone home for the day.
The US had tried to convince the jury that conversations, instant chats and emails among Bogucki and his cohorts — ranging from the ordinary to the profane — pointed to a conspiracy to manipulate the options market. One trader had been quoted in a chat with Bogucki promising to “spank the market” and “bash the sh-t out of the market.” Bogucki’s defense was that those conversations were taken out of context.
Bogucki’s lawyer argued that contracts and agreements between the two sides clearly spelled out their roles. The pre-positioning trades Barclays and Bogucki made ahead of the unwind were done to hedge against the bank’s risk exposure, he argued.
For the government, the lesson of Bogucki’s win is that traders have an advantage defending themselves because “these guys live in this industry, they know this stuff,” said Tim Crudo, a former prosecutor and white-collar defense lawyer.
“They’re much more conversant in the nuances and the practices” of the financial industries they work in, Crudo said, adding that prosecutors by comparison are “not going to know the business, the industry as well as the defendants know it.”
Breyer pointed in his ruling to a crucial distinction between Bogucki’s case and that of HSBC Holdings Plc’s Mark Johnson, who was convicted of currency rigging by a federal jury in New York in 2017 and sentenced to two years in prison. Johnson is now out on bail while he pursues an appeal.
In Bogucki’s case, there was a written agreement between Hewlett-Packard and Barclays that established the parties as principals — and not Barclays as an agent — at opposite sides of an arms-length transaction. The manager of HP’s foreign-exchange team who negotiated with Bogucki testified that he understood the contract Breyer cited as the “master agreement” governing transactions between the two sides.
Barclays previously settled lawsuits over related claims with both HP and the US Hewlett-Packard has since split into two, HP Inc. and Hewlett Packard Enterprise Co.
Monday’s ruling isn’t the first blow to the Justice Department’s effort to target individual traders after the US won guilty pleas in 2015 from four banks, JPMorgan Chase & Co., Citigroup Inc., Royal Bank of Scotland Group Plc and Barclays, which had to pay a combined $2.5 billion.
Bogucki’s lawyer, Sean Hecker, hailed Monday’s ruling for showing that “the government’s attempt to rewrite the rules years after the fact runs counter to core constitutional principles of due process.”
“This is yet another failed attempt by the Department of Justice to regulate this market with ill-conceived and entirely unfounded prosecutions,” he said in an email.
Abraham Simmons, a spokesman for the US Attorney’s Office in San Francisco, declined to comment. — Bloomberg