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4 Weddings and a Funeral is now a mini-series

A MINI-SERIES based on Mike Newell’s popular 1994 film Four Weddings and a Funeral is set to air on Blue Ant Entertainment starting Dec. 17 at 10:35 p.m.

The show, created by Mindy Kaling and Matt Warburton, initially aired in July on Hulu and follows the story of four American friends who reunite for a London wedding and whose lives are thrown into disarray after a bombshell drops at the altar.

“Relationships are forged and broken, political scandals exposed, London social life lampooned, love affairs ignited and doused, and of course, there are four weddings… and a funeral,” the series’ description read.

The show stars Nathalie Emmanuel, Nikesh Patel, Rebecca Rittenhouse, and John Reynolds.

Ms. Kaling, whose resumé includes playing Kelly Kapoor in the NBC sitcom The Office, and who has written, produced and starred in The Mindy Project, told reporters at a summer junket that she felt doing a mini-series based on the beloved British film was “terrifying.”

“What would make it worth it would be to probably show a love story through the lens that I would like to see a love story, which is an African-American woman and a British-Pakistani man falling in love. I would love to see that. And luckily, these guys agreed that that would be great, and then to fill out the cast with people that we don’t normally get to see in these kinds of roles. And from then, it just got really exciting,” Ms. Kaling said during a panel at the Television Critics Association press tour in July.

The 1994 film written by Richard Curtis (who is also producing the mini-series) is considered one of the best British films of the 20th century according to the British Film Institute. It starred Hugh Grant in the lead, a role many have credited to have shot him into stardom.

And because of the original film’s iconic status, Ms. Kaling noted that making a series about the film without Mr. Curtis’ blessing would be “foolish” so she sought his approval.

“I met [Mr. Curtis] for lunch in New York, and then he came to the first table read, and he watches cuts. So, having him to be part of it was really important to all of us, because obviously, he’s the originator of the source material, and we admire him so much,” she said.

Unlike the film which focused on the romance between Mr. Grant and Andie MacDowell’s characters, Ms. Kaling said that for her, the real story of Four Weddings is about friendship.

“Friendships, friendships that look like the friendships I have with my friends that are filled with people who look like that I don’t get to see. But the essence of the friendships that he had in his incredible cast in his film, we wanted to share that with these guys. And there’s so many other actors who are not here, who are in London and all over the world, who filled out the cast,” she said.

Four Weddings and a Funeral airs Tuesdays starting Dec. 17 at 10:35 p.m. on Blue Ant Entertainment. Blue Ant Entertainment is available on SkyCable channel 53 (SD) and 196 (HD), Cignal Philippines channel 120, and via other cable providers. — ZBC

DMCI’s QC project generates P8.6-B in reservation sales

DMCI Project Developers, Inc. said its residential project in Quezon City is close to selling out, having generated P8.615 billion in reservation sales so far.

In a statement, the company, which operates under the DMCI Homes brand, said Infina Towers is now 92% sold as of Nov. 18. Only 185 units are available for sale.

“We’re optimistic of selling out the remaining units soon because of the strategic location of the project and future growth prospects in the area,” DMCI Homes Assistant Vice President for Project Development Dennis Yap was quoted as saying.

Located along Aurora Boulevard, Ifina Towers is located near two proposed stations of the Metro Manila Subway — Anonas and Katipunan Ave.

The two-tower resort-inspired project is targeting first-time buyers, start-up families and investors. The 39-storey North Tower and 40-storey South Tower offers a mix of one-bedroom, two-bedroom and three-bedroom units, sized from 27.50 square meters (sq.m.) to 89 sq.m.

Unit prices start at P3.601 million.

DMCI Homes is aiming to turn over units at the North Tower in September 2021, and units at the South towers in September 2022.

Digitizing social payments to yield gov’t savings

A FULLY DIGITIZED social payments scheme could help save the government $100 million annually, according to a study published earlier this month.

The Better Than Cash Alliance study entitled “The State of Digital Payments in the Philippines” also said the fully digitized disbursement of social payments may also result in about 11 million accounts, thereby improving financial inclusion.

“Digital transfer of social benefits can be the first step in the digital payments journey for a large number of financially excluded Filipinos. This can have a knock-on effect on other digital payment use-cases,” the study said.

Sought for comment, FinTechAlliance.ph Chairman and Rizal Commercial Banking Corp. Chief Innovation and Inclusion Officer Angelito “Lito” M. Villanueva said decreased expenses could come from the “huge administrative costs from manual disbursements of payouts thru cash conduits.

“This is aside from the expensive cash handling involving transporting and securing those physical bills in various far-flung cities and municipalities,” he said in a text message.

Based on data collated by the study, the conditional cash transfer scheme in the country benefits over four million households, which is among the largest globally.

Additionally, the country’s social benefits system mandates all private and public sector employees to be registered to the Social Security System and to the Government Service Insurance System for those employed in the public sector.

“Of all social benefit payments, 45% are made digitally (primarily using cash cards). The remaining 55% of payments not yet digitized presents a real opportunity,” the study said.

“Imagine having all [social benefit payment] transactions digitally. It would surely result to cost savings, efficiency, transparency, security and speed,” Mr. Villanueva said.

Meanwhile, the study recommended that the technical working group (TWG) for Public Finance Management (PFM) of the Department of Budget and Management (DBM) should continue its push to encourage government agencies the use of electronic payments as different offices are currently at different points of progress in terms of their adoption of digital payments.

“The discussions of the TWG may include allowing the government to contract vendors after conducting due diligence,” the study said, noting that it would help budgeting decisions for the DBM while allowing agencies to look into transaction fees for digital payments to suppliers and individuals.

Last week, the Bangko Sentral ng Pilipinas (BSP) said the report found that the volume of e-payments usage in the country grew to 10% of total transactions in 2018 from barely making up 1% in 2013.

Value of e-payment transactions also increased to comprise 20% of transactions, from 8% in 2013.

The central bank targets to make 20% of transactions digital by 2020 and also wants 30% of transaction value done through e-payments.

Mr. Villanueva said the BSP will “no doubt” hit its target for volumes. — Luz Wendy T. Noble

Del Monte swings to loss in 2nd quarter

DEL MONTE Pacific Ltd. swung to a loss of $37.35 million in the second quarter of its 2020 fiscal year because of one-off expenses as it shuttered a number of plants in the United States.

The listed canned fruits manufacturer told the stock exchange yesterday it booked an attributable net loss in the August to October period from last year’s profit of $8.43 million.

This accounted for the company’s one-off expenses in US subsidiary Del Monte Foods, Inc. (DMFI) which closed four production facilities to improve capacity utilization.

Minus the one-off items, Del Monte’s attributable net income in the second quarter soared 118.1% to $15.93 million, driven by the 64.7% jump in its operating profit to $47.22 million.

In the six-month period, the company’s attributable net loss reached $75.62 million from last year’s attributable net income of $11.45 million. Without the one-off items, attributable net income stood at $20.07 million, an almost six-fold increase from $3.57 million in the year prior.

Revenues during the period slipped 5.9% to $934.61 million as the slowdown in its US operations weighed on the improved performance in the Philippines and S&W in Asia.

The company said moving forward, it expects to “improve operational efficiency, reduce costs and increase margins” from the reevaluation of its US plants and the introduction of more health and wellness products.

“The plant restructuring in the US is a necessary step for us to remain competitive in a rapidly changing marketplace,” Del Monte Managing Director and Chief Executive Officer Joselito D. Campos, Jr. said in the statement.

“Ongoing transformational initiatives at DMFI are already showing a positive impact on FY2020 results, and DMFI is on track to exceed recurring EBITDA targets for this financial year. We are maintaining solid market share across legacy categories, while expanding into other new growth categories and channels,” he added.

The company previously said it is looking at options to refinance the loan facilities of DMFI valued at $442.5 million.

Shares in Del Monte at the stock exchange dipped 0.16 points or 3% to P5.17 each on Monday. — Denise A. Valdez

Puppeteer Caroll Spinney, Sesame Street’s Big Bird, 85

NEW YORK — Caroll Spinney, the puppeteer who brought boyish vulnerability to Big Bird, the towering yellow-plumed character, during 50 years on the groundbreaking children’s TV show Sesame Street and even made garbage-loving Oscar the Grouch loveable, died on Sunday at the age of 85, the Sesame Workshop said.

Spinney, who suffered from the movement disorder dystonia, had provided only Big Bird’s voice since 2015 while another puppeteer was in the costume.

“We at Sesame Workshop mourn his passing and feel an immense gratitude for all he has given to Sesame Street and to children around the world,” the show’s co-founder Joan Ganz Cooney said in a statement on Sunday.

Big Bird, Oscar and Spinney were part of Sesame Street when it made its debut Nov. 10, 1969, with the goal of entertaining and educating young children, especially those in low-income families.

Spinney announced his retirement at age 84 in October 2018 after completing episodes that were to be aired in 2019 to mark the show’s 50th year.

With Spinney inside, Big Bird danced with the Rockettes at Radio City Music Hall, sang at Carnegie Hall, passed out Emmys, appeared on the cover of Time magazine and toured China with Bob Hope. He performed with everyone from Johnny Cash to Michael Jackson.

Spinney’s career inside the Big Bird costume was portrayed in the 2015 documentary I Am Big Bird. The film covered some of his darker moments, including suicidal thoughts after his first wife left him and took their kids, and the jealousy he felt when the character Elmo became more popular than Big Bird.

The beloved Big Bird was a fluffy pear-shaped mass of yellow-dyed turkey feathers set atop spindly legs and standing more than eight feet tall. At first he was a dim-witted goof but Spinney developed him into a character whom children could relate to — an excitable naïf with the sensibilities of a six-year-old who was learning letters and numbers just like the young viewers who adored him.

Big Bird was often flustered but persevered with the help of his neighbors on Sesame Street, where puppet creatures and humans lived side by side.

“Through Big Bird I’ve learned things that have changed my life, lessons that have stayed with me even when I’m not in the puppet,” Spinney said in his book, The Wisdom of Big Bird (and Dark Genius of Oscar the Grouch). “I’m certain that being a bird has made me a better person.”

In a statement announcing his retirement, Spinney said: “Even as I step down from my roles, I feel I will always be Big Bird. And even Oscar, once in a while.”

Spinney said Big Bird’s voice was actually his own, just a little higher, but bringing him to life was physically demanding. He had to keep his right hand straight up in Big Bird’s head while his left arm was in the costume’s left wing. He operated the right wing by pulling on a cord and used an interior video monitor to see what was going on in front of him.

Spinney was close to Jim Henson, the man behind Sesame Street and the Muppets puppet troupe, and he wore the full Big Bird costume when he sang the Muppet anthem “Bein’ Green” at Henson’s funeral in 1990.

Big Bird and death also were part of one of most memorable moments on Sesame Street. Actor Will Lee, who played storekeeper Mr. Hooper, died in 1982, and it turned into a lesson for children as the show’s cast gathered around Big Bird to explain the loss of the friend who had made him bird-seed milkshakes.

“When we finished there were tears on all the actors’ faces,” Spinney said in an interview on the Sesame Street website. “When I came out of the suit, I had to have a towel because I had been crying.” — Reuters

Capitol Commons sparkles with lights display

ORTIGAS LAND, formerly Ortigas & Company, unveiled an outdoor light installation at the Capitol Commons Park in Pasig City.

Inspired by the popular “Urban Light” display at the Los Angeles County Museum of Art (LACMA), “Lights at the Park” is expected to attract Filipinos looking for that perfect Instagram-worthy shot this holiday season.

The display features 42 lamp posts in varying heights with 50,400 lightbulbs. It is open to the public from 6 p.m. to 11 p.m. every day until Jan. 5, 2020.

The mixed-use estate Capitol Commons is home to the Estancia Mall.

Indonesia facing ‘new norm’ of low inflation — central bank

BANK INDONESIA said the country has entered a “new norm” of historically low inflation, which can affect interest rates. — REUTERS

INDONESIA has entered “a new norm” of historically low inflation, according to a senior central bank official, possibly portending an era of lower interest rates.

While Indonesia has in the past seen inflation around 6% — even in double digits — “right now there’s a new norm. We already have 3%,” Bank Indonesia Senior Deputy Governor Destry Damayanti said in an interview in Jakarta. “If we can maintain inflation at this level, of course this will be reflected in our interest rate.”

The comments come as Indonesia’s central bank adopts a more cautious approach to lowering interest rates further. While additional easing remains on the table, Ms. Damayanti said Friday a further adjustment to the key rate “is not the only weapon” the central bank can employ.

As global growth slows, Indonesian officials have become increasingly worried about the state of Southeast Asia’s largest economy. The government has revised down its 2019 growth projection several times, with the economy now on course for its slowest expansion since 2017.

Ms. Damayanti flagged that rates may remain on hold as the bank waits to gauge the impact of an aggressive stretch that has seen 100 basis points (bps) of cuts since July. Despite continued weakness in the economy, Damayanti said the depth of easing may not end up matching the extent of last year’s 175 bps of tightening.

“We cannot say that. It really depends on the situation, global and also domestic,” she said. “We still have to maintain the attractiveness” of Indonesian assets, she added, pointing to the spread between local and US rates.

NOT GOOD ENOUGH
Indonesia’s economy has lost momentum in every quarter this year. Gross domestic product is forecast to expand about 5.1% this year, down from an initial projection of 5.3%.

“Is it enough if Indonesia only grows at 5%? Of course not,” Ms. Damayanti said. “We need more acceleration in growth.”

The impact of this year’s rate cuts will start to be felt in the first quarter of 2020, she said. Ms. Damayanti said the central bank is confident the economy will pick up in 2020, with growth expected closer to the midpoint of a 5.1%-5.5% range and private consumption seen growing about 5%.

While Bank Indonesia’s main objective is stability of the rupiah, reflected in part by the inflation rate, its focus more recently has been on supporting growth and fiscal stability. At the same time, inflation has been trending down in recent years after hitting 8.4% in December 2014.

Inflation for all of 2019 is expected to come in at 3.1% after the consumer price index hit a seven-month low of 3% in November. The central bank is set to cut its inflation target band to 2%-4% in 2020, from 2.5%-4.5% this year.

POLICY MIX
Bank Indonesia will keep policy accommodative to support growth, but may use other tools beside rate cuts, Ms. Damayanti said. Last month the central bank held its benchmark rate steady but lowered the proportion of funds banks must keep in reserve, a step to pump cash into the economy.

Ms. Damayanti said the bank might opt for further adjustments to reserve ratio levels and other macroprudential levers.

“We’re using a mixed policy,” she said. “The interest rate is not the only weapon we have.” — Bloomberg

SEC: KAPA is not registered, cannot collect investments

THE Securities and Exchange Commission (SEC) is denying news that KAPA Community Ministry International, Inc. has been registered and is cleared to start operations as a crowdfunding entity.

In a statement Monday, the country’s corporate regulator disproved YouTube videos of a supposed radio broadcast that claimed KAPA “will not be subjected to NBI (National Bureau of Investigation) raid since it already registered with the Commission…”

“To set the record straight, KAPA is not registered with the Commission,” it said. “The public is hereby warned to exercise caution in viewing these kinds of YouTube video posts as they have been found to contain false reports.”

The SEC likewise reinforced its cease and desist order against the organization that it issued in February, which specifically named KAPA founder and president Joel A. Apolinario and any person acting on his behalf.

“The said Cease and Desist Order was eventually made permanent and is in full force and effect up to the present,” the SEC said, adding that the Commission en banc has issued an April 3 decision to revoke the certificate of registration of KAPA.

The SEC has been trying to warn the public against KAPA for almost three years as the organization violated provisions of the Securities and Regulation Code (SRC).

It filed a court case against the group in June for violating Section 8 (8.1) of the SRC which pertains to the requirement to register securities with the SEC; Section 26.1 which prohibits the use of schemes to defraud; and Section 28 which requires brokers and dealers to register with the SEC to buy and sell securities.

The Department of Justice eventually found in October probable cause to indict the identified KAPA officers in SEC’s complaint. These are Mr. Apolinario, trustee Margie A. Danao, corporate secretary Reyna L. Apolinario and others that were involved in KAPA’s illegal selling of securities: Marisol M. Diaz, Adelfa Fernandico, Moises Mopia and Reniones Catubigan.

The SEC claims KAPA solicits at least P10,000 from its members in the guise of “donations,” in exchange of monthly returns of 30% “blessings” or “love gifts” for life.

The SEC estimates KAPA has collected about P50 billion from its operations based on its supposed 5 million members and the minimum investment of P10,000 per head. — Denise A. Valdez

Provides good fun

Harvest Moon: Mad Dash
Nintendo Switch

GAMERS WILLING to set aside any preconceived notions they have of what a Harvest Moon game should be like will find Harvest Moon: Mad Dash to be a worthy addition to their respective Switch libraries. Let’s be honest: The truth is that the Harvest Moon brand does little to add to its engagement. It has none of the farming or relational elements of the usual release in the long-running series; it is, in fact, quite short and simple. Still, it has just enough fun and charm to engage those angling for a diversion absent the commitment that, say, Fire Emblem: Three Houses or Monster Hunter Generations requires.

The Harvest Moon franchise has thrived through generations of consoles; from the Super Nintendo Entertainment System/Super Famicom in 1996 onwards, it has engendered a loyal following of gamers that willingly follow platform shifts. It has even survived a potential saturation of the brand. Marvelous’ decision to have subsidiary Xseed Games take over distribution of future titles in North America led to the creation of the Story of Seasons branch. Meanwhile, developer Natsume, which retained rights to the Harvest Moon name, has seen fit to make its own contributions to the series.

As its very title indicates, Harvest Moon: Mad Dash comes from the Natsume side of the equation. And instead of the usual drawn-out story of a newbie farmer in a rural community searching for romance and profit, it features gameplay elements that have more in common with the likes of Tetris and Columns. To earn points, gamers need to put together fruits, vegetables, or fish of the same kind, rotating pieces to make them fit and form perfect squares (2×2, 3×3, or 4×4), and then “harvesting” them as they mature or grow.

Harvest Moon: Mad Dash has a few monkey wrenches thrown in to add to the challenge of produce and crop sorting. Making shapes that are too large will cause the produce to wilt. Taking too long to put together fish in a bigger body of water causes them to disappear. Even as gamers have their character run around the screen to put the puzzle pieces together, they’re also hard-pressed to feed the animals and get eggs, milk, or wool. Chickens, cows, sheep, and alpacas roam the board lazily, blocking their way or preventing them from creating larger shapes.

Aside from animals out to pasture, Harvest Moon: Mad Dash presents hazards such as ice, coconuts, and volcanic lava that fall randomly. There are also wild boars that barrel through the farm and trample everything in their paths. All these can wipe out crops and delay gamers in a frantic race to accumulate points and fill the power meter. Doing the latter allows for jumps to a temporary time-space continuum where the crops are all ready for harvest and distracting obstacles magically disappear, enabling the accumulation of points needed to pass a level.

In Harvest Moon: Mad Dash, each level can yield up to three stars. At the end of specific stages, gamers will need a certain number of stars to move on. More stars also allow for the tapping of Harvest sprites to help in the form of extra time, power boosts, or healthy harvests. Parenthetically, opening the final stage requires acorns won from the Underworld or Skyworld areas; unfortunately, it’s so short as to be almost anticlimactic. When the credits roll, there is a palpable sense of wanting to go back for more. Thankfully, repeating the stages, whether for the opportunity to improve scores or simply for more fun, is seen as a welcome prospect.

Harvest Moon: Mad Dash allows for multiplayer options (up to four players) but extra Joy-Cons are required. Cooperative play opens up the possibility for higher scores as each player does his or her share of “farming” and “harvesting.” In any case, it pitches to a selective audience. It may not be for all, despite its E rating, and it may even disappoint dedicated fans of the franchise expecting gameplay elements typically carried by previous releases in the series. To those devoid of any preconceived notions, however, it should provide good fun. In this time and age of myriad entertainment alternatives that contribute to shorter and shorter attention spans, it figures to keep them engaged and wanting for more.

THE GOOD:

• Fun for the young and young at heart

• Challenging but not frustratingly so

• No commitment needed

THE BAD:

• Too short

• No narrative to provide context to the proceedings

RATING: 7.5/10

POSTSCRIPT: Mario & Sonic at the Olympic Games: Tokyo 2020 is exactly as it sounds, which is to say a game that has Nintendo and Sega’s iconic characters participating in the latest staging of the Summer Games. It’s part of a long-running series that taps multiple licenses to generate crossover appeal. That it works, and how, is attributable to its polish; it isn’t simply a product that lops together seemingly disparate intellectual properties for expediency and quick gains. Bottom line, it’s an extremely well-thought-out title that succeeds in making a variety of sports — events, really — accessible to a population of gamers otherwise loath to dabble in the genre.

Mario & Sonic at the Olympic Games: Tokyo 2020 boasts of a Story Mode that, owing to the machinations of Dr. Eggman and Bowser, compels gamers to participate in the 2020 Olympics and the 1964 Olympics, both in Tokyo — albeit with a twist; the former is presented in three-dimensional format, and the latter in eight- and 16-bit graphics and sounds reminiscent of those churned out by the Nintendo Entertainment System and Sega Genesis. The retro presentation has 10 sports on tap, while the modern one has twice as many; exclusives in each are present, further underscoring the differentiation.

Significantly, Mario & Sonic at the Olympic Games: Tokyo 2020 gives gamers options in steering their favorite characters. Joy-Cons can be used together or separately, and provide motion, directional-pad, and button alternatives. Regardless of choice, controls are extremely responsive, and at no time do they hold back or interfere with the unfolding action. To the contrary, the technical proficiency of the interface proves a boon, especially in light of the immediacy of the proceedings. If there’s any bane, it’s in the waiting time required to get an online multiplayer session going; apparently, there isn’t enough competition out and about and angling for a quick mini-game. And, yes, only one can be set up at a time; after a button-mashing bout that literally lasts for seconds, there is need to repeat the process.

Mario & Sonic at the Olympic Games: Tokyo 2020 notably brings back the popular Dream Events, over-the-top versions of Olympic sports. Considering their potential for fun, particularly as party options, it’s too bad that only Dream Racing, Dream Shooting, and Dream Karate make the leap to the franchise’s latest offering. That said, the release also doubles as a repository of information on Tokyo, as well as on the characters themselves. If nothing else, they widen the knowledge of gamers and serve to elevate the title to more than mere passing fancy.

On the plus side, Mario & Sonic at the Olympic Games: Tokyo 2020 puts forth an excellent audio-visual presentation. In fact, no other release in the series looks and sounds better. No doubt, Sega was motivated to put its best foot forward given own ties to the venue of the Quadrennial. Nonetheless, it succeeds in earning its AAA price tag. For all its frailties, it manages to generate interest as a multiplayer marvel, directly involving up to eight, and indirectly keeping more transfixed, in its adrenaline-pumping offerings. (8/10)

THE LAST WORD: Notwithstanding the ridiculous title, Is It Wrong To Try To Pick Up Girls In A Dungeon? — Infinite Combate has gamers out West anticipating its localization. Based on the light novel series written by Fujino Ōmori and published by SoftBank subsidiary SB Creative, the action role-playing game developed by Mages will have an Asian release with English support later this week. Play-Asia currently has it on preorder, with fulfillment of early reservations including an English-language slipcase, an A4-size clearfile, and a code for the digital copy of DanMachi de Shootint wa Machigatteiru Darou Ka. The latter has adventurer Ais Wallenstein and a handful of supporting cast mates negotiating five stages of side-scrolling shoot-‘em-up action.

PQube Games will be publishing Is It Wrong To Try To Pick Up Girls In A Dungeon? — Infinite Combate for release on the Switch, Sony PlayStation 4, and personal computer in North America and Europe early next year.

Capilla de San Lorenzo opens at Robinsons Magnolia

ROBINSONS Magnolia recently opened the Capilla de San Lorenzo, the first chapel in Quezon City named after Filipino saint Lorenzo Ruiz.

The chapel was blessed by Cubao Bishop Reverend Honesto Ongtioco on Sept. 28, which was the feast day of St. Lorenzo Ruiz.

“Fr. Dennis Soriano suggested the name because there was no chapel in Quezon City named after San Lorenzo Ruiz. It is also a tribute to the first Filipino saint,” Jasmin Lucio, regional operations manager of Robinsons Land Corp., said in a statement.

Located on the 5th floor mezzanine of the mall’s new wing, the chapel can accommodate 350 seated and 100 standing churchgoers. Anticipated Mass is celebrated every Saturday at 6 p.m., while regular Sunday Masses are at 10 a.m. and 4 p.m. Masses are also held every First Wednesday and First Friday of the month.

Staring 2020, there will be daily masses at 12:15 noon and an additional 6 p.m. mass every Sunday.

“We are looking at the possibility of celebrating Mass in other languages, like Chinese,” Ms. Lucio said, noting that as of now the masses are in English.

The chapel was designed by Jonathan Gan, inspired by the Immaculate Conception Parish Church.

For the Christmas season, Capilla de San Lorenzo will hold anticipated Simbang Gabi Mass at 8 p.m. beginning Dec. 15, in addition to the regular Mass schedule.

Repo market blowup fueled by big banks and hedge funds, BIS says

THE US Federal Reserve had said investors used repo to finance the purchase of newly auctioned Treasuries. — REUTERS

THE SEPTEMBER MAYHEM in the US repo market suggests there’s a structural problem in this vital corner of finance and the incident wasn’t just a temporary hiccup, according to a new analysis from the Bank for International Settlements (BIS).

This market, which relies heavily on just four big US banks for funding, was upended in part because those firms now hold more of their liquid assets in Treasuries relative to what they park at the Federal Reserve, officials at the Basel-based institution concluded in a report released Sunday. That meant “their ability to supply funding at short notice in repo markets was diminished.”

And hedge funds are financing more investments through repo, which “appears to have compounded the strains,” the researchers added.

This brings the BIS, the central bank for central banks, into a controversy that has vexed observers for almost three months: Why did the repo market get so bad, so quickly? On Sept. 17, rates on general collateral repo briefly surged to 10% from around 2%.

Many, including the Fed, concluded in the immediate aftermath that two transitory events collided: investors used repo to finance the purchase of a large batch of newly auctioned Treasuries at the same time that quarterly corporate tax payments drained liquidity from that market.

But the BIS doubts an ephemeral supply-and-demand imbalance is totally to blame.

“None of these temporary factors can fully explain the exceptional jump in repo rates,” Fernando Avalos, Torsten Ehlers and Egemen Eren wrote in the latest BIS Quarterly Review.

Reserves — or cash that banks stash at the Fed — are the easiest asset for banks to tap when they want to quickly move money into repo. And it would’ve been logical for banks to pour cash into repo to get those 10% returns from an overnight loan.

The four banks that dominate the market hold about 25% of the reserves in the US banking system, but 50% of the Treasuries. That mismatch likely slowed the movement of cash into repo, the BIS researchers postulated.

CASH BUFFERS
Volatility in the amount of cash the US Treasury keeps parked at the Fed also affected banks’ reserves. “The resulting drain and swings in reserves are likely to have reduced the cash buffers of the big four banks and their willingness to lend into the repo market,” the team wrote.

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has put the blame on regulators themselves. He said in October that his firm had the cash and willingness to calm short-term funding markets but liquidity rules for banks held it back.

Some analysts have also pointed to a new corner of the market which has seen immense growth: sponsored repo. This allows banks to transact with counterparties like money-market funds without impacting their balance sheet constraints. The downside is that it’s only available on an overnight basis, and as a result has further concentrated funding risk.

Along with changing market structure, the researchers also connected the repo ruckus to banks being somewhat out of practice in daily reserve management. That’s because trillions of dollars worth of Fed asset purchases — the so-called quantitative easing program meant to help the economy recover from the 2008 financial crisis — had left the banking system flush with cash for years.

FED CAMPAIGN
“The internal processes and knowledge that banks need to ensure prompt and smooth market operations may” have started to decay, BIS wrote. “This could take the form of staff inexperience and fewer market-makers, slowing internal processes.”

The Fed in 2017 started shrinking its balance sheet and shortages began to re-emerge last quarter. The central bank stopped paring back holdings in August and started buying Treasury bills in October, an attempt to add reserves to the banking system. That was part of its campaign to keep the repo market calm, an effort that began in September with overnight and then longer-term repo operations.

“These ongoing operations have calmed markets,” the BIS researchers wrote.

Still, market participants are wary that trouble may resurface at yearend — a time when repo liquidity has historically been scarce. There’s been high demand from money-market participants for cash via repo that the Fed’s been offering with tenors that will extend into the new year.

The report also took a look at the European repo market, which escaped the kind of turmoil that engulfed the US in September. But that doesn’t mean all is calm. Beneath the surface, the 8-trillion-euro ($9-trillion) market is becoming increasingly fragmented, raising the risk that cash may not flow through properly, the BIS said. — Bloomberg

SteelAsia sees capacity at 2.5 million tons by 2021

STEELASIA Manufacturing Corporation expects capacity to hit 2.5 million tons in 2021 as it expands operations.

SteelAsia Vice-President and Head of Business Development Raphael C. Hidalgo told reporters at a media event that the company produced almost 2 million tons this year. Its new operations in Compostela, Cebu will expand its production capacity after it goes into operation in late 2020.

“So 2021 will be the real one where you see the number go up. In terms of capacity, we’re going to add another one million tons. But this isn’t one million tons for the present — it’s one million tons for the future. So maybe it will give us an additional half million tons.”

The steel industry in the Philippines is currently dominated by rebar production. SteelAsia plans to expand to other steelmaking, rolling, and fabrication and cold processes. This would address demand through the local production of beams, sheet piles, and angles, among other steel products — instead of importation.

The company is also currently working on its initial public offering, as it plans to go public within two years.

“We started preliminary work already on the corporate side, but going out and starting process with SEC (Securities and Exchange Commission) hindi pa (not yet),” Mr. Hidalgo said. — Jenina P. Ibañez

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