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Oct. finds fewer Filipinos jobless, though underemployed ranks grow

THE LATEST official labor data showed the ranks of jobless Filipinos decreasing in October, though those wanting more work to augment income increased slightly, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary results of the PSA’s October 2019 round of the Labor Force Survey (LFS) put the unemployment rate at 4.5%, down from the 5.1% recorded in the same survey round last year.

This is equivalent to 2.05 million jobless Filipinos, down from 2.203 million in October 2018.

While the underemployment rate — the proportion of those already working, but still looking for more work or longer working hours — improved to 13% from 13.3%, the actual number of the underemployed edged up to 5.615 million from 5.502 million previously.

The latest unemployment and underemployment rates were the lowest among the October rounds of the LFS since the government adopted new definitions for the LFS in 2005.

The size of the labor force was approximately 45.196 million out of the 73.528 million Filipinos aged at least 15 years old, yielding a labor force participation rate (LFPR) of 61.5%. This was higher than last year’s 60.6%.

The employment rate, which is the proportion of the employed to the total labor force — inched up to 95.5% in October from 94.9% the previous year.

In a statement, the National Economic and Development Authority (NEDA) said that the latest employment rate was the highest in all previous October rounds since 2009.

NEDA also noted that employment generation averaged around 1.3 million this year, exceeding the government’s annual target of 900,000-1.1 million.

In a statement, NEDA Officer-in-Charge Adoracion M. Navarro, undersecretary for Regional Development, said that the government remains on track in terms of reducing the unemployment rate to 5.1% in 2019, which is within the target range of 4.7-5.3% set in the Philippine Development Plan 2017-2022.

By economic sector, services made up the biggest share of the employed population. In October, the employment share in that sector grew to 57.7% from 56.8%.

Industry accounted for 18.9% of employed Filipinos in October, down from last year’s 19.1%.

Agriculture employed 23.5% of the workers, down from 24.1%.

“The decrease in the unemployment rate can be ascribed to better economic conditions that resulted in stronger employment creation,” University of Asia and the Pacific economist Cid L. Terosa said in an e-mail, citing “accelerated effort” to implement the government’s infrastructure program as well as the “rush to finish many of the facilities” that are currently being used in the Southeast Asian games in generating jobs and lowering unemployment.

“The drop in the underemployment rate shows that quality jobs have been created in the economy during the period. This augurs well for the economy as it implies better job opportunities that will help realize the productive potential of those in the labor force,” Mr. Terosa added.

In a separate e-mail, Security Bank Corp. Chief Economist Robert Dan J. Roces said that the record-low figures on unemployment and underemployment indicate “an improvement in the labor market.”

“However, the slight increase in the LFPR relative to better employment levels also suggests some workers are probably dropping out of the workforce and joining the informal sector to take up ‘gig economy’ work. However, the report should be welcome news, but there is still a very long way to go,” he added.

YOUTH LABOR DATA MIXED
The employment rate among the youth — defined as those aged 15-24 years old, was 87.2% in October — up from 86.7% in October last year.

The proportion of youth not in employment, education and training improved to 17.1% from 18.7% in October 2018.

On the other hand, the youth LFPR inched down to 37% in October from 37.2% last year.

“Decrease in youth unemployment and underemployment shows young workers getting gainfully employed as better labor market conditions enable better absorption of jobseekers from this age range, perhaps due to more job categories that demand competencies possessed by a younger set of workers,” Security Bank’s Mr. Roces said.

“However, the corresponding decrease in the youth LFPR suggests younger jobseekers are also dropping out from the labor market which could mean some might be going back to school to take up post-graduate degrees, but could also mean a shift to more ‘gig-based’ work which are mostly uncovered by labor laws and leaves young wage earners unprotected by social safety nets.”

NEDA’s Ms. Navarro said the latest LFS results “reflected a vibrant labor market” but that the government must still continue to fast-track the implementation of programs and policies that improve labor productivity and quality of employment. — Jobo E. Hernandez

Inflation picks up in Nov., but on target — PSA, BSP

INFLATION inched up to 1.3% in November following five straight months of easing, the Philippine Statistics Authority (PSA) reported on Thursday.

November’s headline inflation rate was up from 0.8% in October, albeit slower than the six-percent inflation rate posted in November 2018.

The reading was higher than the 1.2% median estimate in BusinessWorld’s poll of 16 economists last week but fell within the Bangko Sentral ng Pilipinas’ (BSP) 0.9%-1.7% range for the month.

The overall rise in prices of widely used goods averaged 2.5% in the 11 months to November compared to the BSP’s 2.4% forecast and 2-4% target range for 2019.

Stripping out volatile energy and food prices, core inflation steadied at 2.6% in November. Year-to-date, it averaged 3.3%.

The Bangko Sentral ng Pilipinas (BSP), which last week signaled that it would watch out for this latest inflation data, said in a statement yesterday that it “will consider all the latest economic developments here and abroad in the Monetary Board’s policy meeting on Dec. 12 to ensure that monetary policy stance remains consistent with the BSP’s price stability objective while being supportive of economic growth.”

The PSA attributed the latest inflation result to higher annual increases in the following commodity groups: alcoholic beverages and tobacco (17.6% from 16.5% in October); housing, water, electricity, gas and other fuels (1.2% from 0.6%); health (3.1% from 2.9%); and communication (0.3% from 0.2%).

The National Economic and Development Authority (NEDA) said in a statement that November inflation was “mainly driven” by faster prices of fish, the “slower deflation” in rice and electricity, gas and other fuels, and the “waning base effects” from last year.

The heavily weighted food and non-alcoholic beverages index was flat in November versus October’s 0.9% dip.

Food-alone inflation continued to decline by 0.2% in November, but was slower than October’s 1.3% contraction.

Performance among food groups varied, with some exhibiting faster price increases while others posted slower declines. Rice, which saw a 9.7% contraction in October, continued to decline albeit at a slower rate of 8.3% in November.

Price increases in fish and meat accelerated to 2.5% (from 0.8%) and 3.2% (from 2.7%), respectively. Vegetables likewise picked up by one percent from a 0.8% decline previously.

Economists interviewed said that November’s inflation data means the BSP will likely will likely resume monetary policy easing in the first quarter of 2020.

“UnionBank’s Economic Research Unit sees that there is ample traction for another rate cut, but the BSP Governor [Benjamin E. Diokno] himself did cite the impact of volatile global oil prices, which is very critical to inflation’s longer-term prospects. Thus, the BSP is expected to continue easing next year and that this year’s easing cycle is already done,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa expects the BSP to hold fire in its Dec. 12 policy review.

Mr. Mapa noted, however, that given Mr. Diokno’s “dovish leaning,” the rate cut cycle may resume as early as the first quarter next year.

“The peso may recover in the short-term as faster inflation will mean that a BSP rate cut is off the table for now,” he added.

JPMorgan Chase Bank NA Singapore Branch Economist Nur Raisah Rasid expected the same: “Amid ongoing growth concerns and a well behaved CPI (consumer price index) trajectory, we continue to expect 25 [basis points or bps] policy easing in [the first quarter of 2020],” she said in a note.

In a separate note, Capital Economics Asia Economist Alex Holmes expected “more easing” in 2020 “with economic growth set to fall short of the government’s 6.5%-7.5% forecast for next year and with inflation likely to remain well within target.”

“We are sticking with our view that the central bank will cut rates by a further 50 bps in 2020…” he said.

BSP’s Mr. Diokno has said early last month that the BSP was done with its policy easing cycle for this year after cutting benchmark interest rates by a total of 75 bps and banks’ reserve requirement ratio by a total of 400 bps.

INFLATION OUTLOOK
“The latest inflation outturn remains consistent with the BSP’s prevailing assessment that inflation has bottomed out in October and is expected to gradually approach the midpoint of the target range [of 2-4%] in 2020 and 2021,” the BSP said in its statement.

Meanwhile, JPMorgan’s Ms. Rasid said in a note that inflation will “likely trend higher” in the coming months “in part reflecting the implementation of higher excise taxes on tobacco and alcoholic beverages from January next year.”

“Headline CPI will likely average 2.4% in [the first half of 2020], and a rise to 3.1% in the [second-half]. The CPI profile suggests that inflation will likely remain comfortably within the BSP’s 2-4% target range through 2020,” she added.

UnionBank’s Mr. Asuncion said the inflation print in December is “expected to be more than one-percent as well” with full-year 2019 inflation expected to settle at 2.4%.

For his part, ING Bank’s Mr. Mapa said that the acceleration in inflation would continue to pick up going into 2020 and “settle at around 3% throughout the most part of next year.”

“For as long as supply conditions remain favorable, we can expect inflation to remain in-check, however, we are unlikely to visit the sub-2% level for at least the next 12 months,” he added. — Edwin C. Aruta, Jr.

December Ave. is most streamed artist in PHL

ORIGINAL Pilipino Music (OPM) reigned supreme in 2019 according to music streaming service Spotify, as indie rock band December Avenue topped the Most Streamed Artists list in the Philippines, the first time a Filipino did so.

Last year, American indie-pop band LANY topped the annual Spotify Wrapped, a list which compiles which artists, albums, songs, playlists, and podcasts the platform’s listeners enjoyed throughout the year.

This year, aside from December Avenue topping the Most Streamed Artists list, the top four places in the platform’s Most Streamed Tracks are from Filipino artists: December Avenue and Moira dela Torre’s “Kung Di Rin Lang Ikaw,” I Belong to the Zoo’s “Sana,” This Band’s “Kahit Ayaw Mo Na,” and Ben&Ben’s “Maybe the Night.” Rounding up the top five is the only foreign song on the list, Post Malone and Swae Lee’s “Sunflower,” the theme from the film Spider-Man: Into the Spider Verse.

Following December Avenue on the Most Streamed Artists list in the Philippines are chart mainstays like Taylor Swift, Ed Sheeran, Ben&Ben, and finally, Ariana Grande.

Both Ms. Swift and Mr. Sheeran topped the Most Streamed Female and Male Artists lists, respectively, while December Avenue also topped the Most Streamed Groups and Most Streamed Local Artists lists.

This year, the Philippines streamed Ms. Swift’s seventh album, Lover, the most, followed by LANY’s Malibu Nights, Post Malone’s Hollywood is Bleeding, Ariana Grande’s thank u, next, and Shawn Mendes’ eponymous album.

Globally, American rapper Post Malone (real name: Austin Richard Post) was the Most Streamed Artist, followed by Billie Eilish, Ariana Grande, Ed Sheeran, and Bad Bunny.

“This year, Post Malone claimed the spot of most-streamed artist with over 6.5 billion streams from fans around the globe. It’s the rapper-singer-songwriter’s first time topping Spotify’s Wrapped list, and he did it just 12 weeks after dropping his album Hollywood’s Bleeding (which also happens to be the second most-streamed album globally this year),” Spotify said in a Dec. 3 blog post.

American singer Billie Eilish may be in the second spot on the Most Streamed Artists list globally, but she took the top spot in the Most Streamed Albums list with WHEN WE ALL FALL ASLEEP, WHERE DO WE GO? followed by Post Malone’s Hollywood’s Bleeding. The list is rounded up by Ariana Grande’s thank u, next, Ed Sheeran’s No. 6 Collaboration Projects, and Shawn Mendes’ eponymous album.

Ms. Eilish is the first female artist to top the Most Streamed Albums chart, and she’s only 17.

Shawn Mendes and Camila Cabello’s Latin pop song, “Señorita,” topped the Spotify’s Most Streamed Tracks list, followed by Billie Eilish’s “Bad Guy,” Post Malone and Swae Lee’s “Sunflower,” Ariana Grande’s “7 Rings,” and the viral hit “Old Town Road (Remix)” by Lil Nas X and Billy Ray Cyrus.

With the decade ending in a few weeks, Spotify named Ariana Grande as the Most Streamed Female Artist of the decade while Canadian rapper Drake (real name: Audrey Drake Graham) is the Most Streamed Artist of the decade with “more than 28 billion streams to his name,” according to the service.

Spotify users can also generate their own Wrapped lists via the app or spotify.com/wrapped.

SPOTIFY WRAPPED 2019 PHILIPPINES TOP LISTS

• Most Streamed Artists

1. December Avenue

2. Taylor Swift

3. Ed Sheeran

4. Ben&Ben

5. Ariana Grande

• Most Streamed Male Artists

1. Ed Sheeran

2. Khalid

3. Post Malone

4. Lauv

5. Shawn Mendes

• Most Streamed Female Artists

1. Taylor Swift

2. Ariana Grande

3. Moira dela Torre

4. Camilla Cabello

5. Billie Eilish

• Most Streamed Local Artists

1. December Avenue

2. Ben&Ben

3. Moira dela Torre

4. This Band

5. I Belong to the Zoo

• Most Streamed Groups

1. December Avenue

2. Ben&Ben

3. LANY

4. BTS

5. BLACKPINK

• Most Streamed Tracks

1. “Kung Di Rin Lang Ikaw,” December Avenue, Moira dela Torre

2. “Sana,” I Belong to the Zoo

3. “Kahit Ayaw Mo Na,” This Band

4. “Maybe the Night,” Ben&Ben

5. “Sunflower,” Post Malone, Swae Lee, from Spider-Man: Into the Spider Verse

• Most Streamed Albums

1. Lover, Taylor Swift

2. Malibu Nights, LANY

3. Hollywood’s Bleeding, Post Malone

4. thank u, next, Ariana Grande

5. Shawn Mendes, Shawn Mendes

SPOTIFY WRAPPED 2019 GLOBAL TOP LISTS

• Most Streamed Artists

1. Post Malone

2. Billie Eilish

3. Ariana Grande

4. Ed Sheeran

5. Bad Bunny

• Most Streamed Albums

1. WHEN WE ALL FALL ASLEEP, WHERE DO WE GO?, Billie Eilish

2. Hollywood’s Bleeding, Post Malone

3. thank u, next, Ariana Grande

4. No. 6 Collaborations Project, Ed Sheeran

5. Shawn Mendes, Shawn Mendes

• Most Streamed Tracks

1. “Señorita,” Camila Cabello, Shawn Mendes

2. “bad guy,” Billie Eilish

3. “Sunflower,” Post Malone, Swae Lee

4. “7 Rings,” Ariana Grande

5. “Old Town Road — Remix,” Lil Nas X, Billy Ray Cyrus

• Most Streamed Female Artists

1. Billie Eilish

2. Ariana Grande

3. Taylor Swift

4. Camila Cabello

5. Halsey

• Most Streamed Male Artists

1. Post Malone

2. Ed Sheeran

3. Bad Bunny

4. Khalid

5. J Balvin

• Most Streamed Podcasts

1. The Joe Budden Podcast with Rory & Mal

2. My Favorite Murder with Karen Kilgariff and Georgia Hardstark

3. Gemischtes Hack

4. Fest & Flauschig

5. The Misfits Podcast

• Most Streamed Podcast Genres

1. Comedy

2. Society & Culture

3. True Crime

4. News

5. Health & Fitness — Zsarlene B. Chua

High Court halts Mandaluyong RTC ruling vs MORE franchise

ILOILO CITY — The Supreme Court (SC) has temporarily blocked the decision of a regional court in Mandaluyong that declared as void and unconstitutional some provisions of MORE Electric and Power Co.’s (MORE Power) new congressional franchise covering Iloilo City.

In a three-page temporary restraining order (TRO) issued Dec. 3, the country’s highest court directed Regional Trial Court (RTC) Judge Monique A. Quisumbing-Ignacio and the Panay Electric Co. (PECO), which filed the case, from implementing her decision issued in July.

“Effective immediately and continuing until further order from this Court, Branch 209 RTC in Mandaluyong and PECO, are hereby commanded and directed to cease and desist from implementing the judgement dated July 1, 2019 which declared Sections 10 and 17 of RA (Republic Act) 11212 void and unconstitutional and made permanent the TRO dated on March 14,” the SC order said.

Congress denied PECO’s application to renew its franchise that expired in January this year.

Sec. 10 of RA 11212, which contains MORE Power’s franchise, authorizes the company to exercise the power of eminent domain, meaning expropriate PECO’s existing assets.

Section 17 of the law allows PECO, which has been Iloilo City’s sole power distributor for 95 years, to operate the existing system until MORE Power establishes its own within a period of not more than two years.

PECO Legal Counsel Estrella C. Elamparo, in a phone interview on Wednesday, said they will “definitely” and “respectfully” ask the SC to reconsider the TRO.

She also said that MORE Power should not insinuate that the SC TRO affects the expropriation-related case it filed before a court in Iloilo.

“The TRO, it only concerns RTC Mandaluyong, it does not order the RTC Iloilo to continue with the expropriation case,” she said.

Last Nov. 18, Iloilo RTC Branch 35 Presiding Judge Daniel Antonio Gerardo S. Amular ordered “to suspend further proceedings in this case in the interest of judicial fairness, respect to the Honorable Supreme Court and for practical considerations.”

MORE Power Chief Executive Officer and President Roel Z. Castro, on the other hand, said they are pleased about the SC order.

“This goes to show that the Supreme Court, the court of last resort and final arbiter of all legal questions brought before it, found that MORE Power has a clear and unmistakable right to be protected… (that) there is an urgent need for the writ to prevent irreparable injury to MORE Power, and; no other ordinary, speedy, and adequate remedy exists to prevent the infliction of irreparable injury other than the issuance of said TRO,” he said. — Emme Rose S. Santiagudo

4th CineFilipino Film Fest finalists announced

THE CineFilipino Film Festival has announced the finalists for its fourth installment. Organized by Cignal TV and Unitel Productions, Inc, the film festival will showcase stories in feature length, shorts, and series categories by young and aspiring Filipino filmmakers.

“We may find the next great Filipino filmmaker, as well as the next great Filipino film, in the festival,” CineFilipino Festival Director Madonna Tarrayo was quoted as saying in a press release. “CineFilipino supports the celebration of 100 years of Philippine cinema, and we’re always on the lookout for exceptional talent that can help drive the art and the industry in the present and future.”

Eight finalists from over 100 entries were chosen for the Feature Length category. They are: Jopy Arnaldo’s 27 EXP, which centers on a boy who uses a disposable camera to move on from love lost; Charlson Ong and Angelo R. Lacuesta’s Cargo, about a Tausug fast-boat pilot who gets involved in a murder; Sue Aspiras’ Homecoming, about a young diwata who gets a dazzling homecoming; Christopher Gozum’s Ilikdem Mo So Matam (Close Your Eyes), about A Filipina filmmaker in Seoul who enters into a forbidden relationship; Steven Paul Evangelio’s Maya-maya Paparito Na, about a family’s Christmas reunion which is interrupted by a devastating storm; JP Habac’s Olsen’s Day, which follows a production assistant who travels with a strange old man and his son whom threatens him but at the same time, gives him the answers he seeks; Rob Jara’s Ouroboros, a coming-of-age drama about a young man who waits 20 years to avenge his father’s death; and Dolly Dulu’s The Boy Foretold by the Stars, about a gay high school student driven by a fortuneteller’s predictions to prove to a boy that they are destined to be together.

The eight finalists each recieved a P2-million grant to be produced.

Competition head and film director Jose Javier Reyes noted that the film’s representation of being Filipino, how it caters to the Filipino audience, and the fresh perspective of young directors were the criteria for choosing the films. “We do not make films for international film festivals, we make films for Filipinos,” Mr. Reyes said during a press conference on Nov. 21 at Cities Events Place in Quezon City.

Hindi magkakaroon ng bagong hugis at hindi tutugma sa antas ng panahon ang mga pelikula kung hindi ito magbibigay ng pagkakataon sa mga bagong boses, pananaw, at pangarap ng ating mga filmmakers (films will not gain a new form and suit the times if we do not provide a chance to the new voices, insights, and dreams of our filmmakers),” he added.

For the Series category, the 10 finalists are: Jeremy Luke Bolatag’s B124; Christian Mark Vidallo’s Balete: The Animated Series; Rob Jara’s Delikado; Kris Ulrich and Maze Mirada’s Life After College; Ronald Van Angelo A. Dulatre’s Manila Encounters; Dustin Celestino’s Philippine Gothic: Habang Buhay; Ronald Batallones’ Raket; Efren P. Malabanan’s Sa Pusod ng Dagat; Carlo Obispo’s The Junkyard Hippies; and Jelani Maniago’s Tindero.

These finalists will be pitching their stories to a panel made up of SM Lifestyle Entertainment SAVP of Ad and Corporate Sales Isabelle Santillan, filmmaker and producer Perci Intalan, Viva Communications Producer and AVP for TV Production Tess Fuentes, and screenwriter and filmmaker Wanggo Gallaga. Five of the pitches will be shortlisted and be granted a budget for production.

Ms. Tarrayo noted that the selected series are those that have a potential for succeeding seasons.

Meanwhile, the nine finalists in the Shorts category are: Dolly Dulu’s 7-Year Itch; Dexter Paul de Jesus’ Alex & Aki; Claudia Fernando’s Ang Alamat ng Sari-Saring Sari Store; Zsarina P. Lacumba’s Ang’gulo (Unclear); Eluigi Macalintal and James Garcia’s Delta; Lorys Plaza and James Hermoso’s Kita (nalang) Duha; Noel Tonga, Jr.’s Memento Mori; Ronald Dulatre and Elaiza Rivera’s Tayo (Stand Up); and Reeden Fajardo’s Quing Lalam Ning Aldo (Under the Sun).

The full length feature and short films will be shown in selected cinemas in May next year, while the shortlisted series will air on Cignal TV.

For more information, visit www.cinefilipino.com or https://www.facebook.com/CineFilipino. — Michelle Anne P. Soliman

Fitch blames slow credit growth on trade issues

THE SLOWDOWN in credit growth despite the rounds of monetary easing by the central bank could be blamed on a decline in loans to the manufacturing sector, according to Fitch Ratings.

Aside from this, the ratings agency also attributed the credit growth slowdown to a lag in the effects of the rate cuts done by the central bank earlier this year.

“We believe that the slowdown could be partly attributed to a generally weaker external environment, amid the global trade tensions,” Fitch Ratings’ Asia Pacific Banks’ team said in an e-mail to BusinessWorld on Wednesday.

Latest data from the Bangko Sentral ng Pilipinas showed loans disbursed by big banks in October expanded by 9.3%, a slower pace compared to the 10.5% in September. Inclusive of reverse repurchase agreements, bank lending rose 9.1% in October, also a slower pickup compared to the 10.1% seen in the previous month.

Lending to the manufacturing sector slipped by 1.6% year on year to P1.037 billion from P1.054 billion. It also dipped by 0.8% on a monthly basis from the P1.041 billion worth of loans disbursed in September.

The ongoing trade rift between the world’s two biggest economy has long dented the manufacturing industries of countries, including our Asian neighbors such as Singapore, Malaysia, Japan, and Korea.

Meanwhile, analysts pointed out that the Philippines has been insulated from the trade war due to being a less export-oriented state and its limited exposure to the manufacturing sector.

“Consumer and business sentiment indicators have been strengthening in recent months which should bode well for loan growth if it translates into economic activity,” Fitch Ratings said.

Loans disbursed for household consumption by universal and commercial banks grew 26.7% year on year in October to P805.934 million from P635.997 million. This is a pickup from a pace of 26.2% expansion in September, BSP data showed.

Fitch also said the recent rate cuts have yet to be felt by the financial markets.

“The effect of recent rate cuts could also be lagging, as businesses have been waiting for rates to bottom before taking on credit to expand,” the credit rater said.

Earlier, BSP Governor Benjamin E. Diokno said it could take time before the market fully feels the effect of its easing moves, considering the aggressive 175-basis-point (bp) hike in 2018 amid a high inflation environment.

“’Yung growth kasi siguro partly ’yung tightening nung 2018 (Slow loan growth could be partly due to the tightening in 2018 totaling 175 bps)… As I said, monetary policy works with a lag. So may impact talaga ’yun, kaya nga we started unwinding (It really has an impact, that’s why we started unwinding),” Mr. Diokno told reporters on the sidelines of the BSP’s Christmas lighting ceremony on Monday evening.

Following 75 bps of rate reductions this year, key interest rates stand at four percent for the overnight reverse repurchase facility, 3.5% for overnight deposit, and 4.5% for overnight lending. — L.W.T. Noble

AC Energy plans to focus on renewables, peaking plants

By Victor V. Saulon, Sub-editor

AC Energy Philippines, Inc. targets to build around 1,300 megawatts (MW) of power generation plants by end-2020, or about three times the size of the company’s installed capacity before the Ayalas’ energy arm bought the former Phinma Energy Corp. last year.

“We’ll be focusing a lot on renewables and peaking plants,” Eric T. Francia, president and chief executive officer of AC Energy Philippines said in a briefing at the company’s head office in Makati City.

The Ayalas’ energy arm in the country previously announced greenfield or new power plant projects in Alaminos, Laguna at 120 MW, and 60 MW in Palauig, Zambales. An affiliate property company has land in Alaminos where a solar farm can be put up.

The target capacity is apart from that of the company’s parent firm — Ayala Corp. subsidiary AC Energy, Inc. — which has a unit for power development projects outside the Philippines.

“We are going to issue the ‘notice to proceed’ very soon but we’ve already disclosed the board approval for the investment in these two solar projects and one peaking project in Pililia, the 150 MW peaking plant,” he said.

In October, the company disclosed that it was looking at term loan facilities for up to P15 billion and that its board of directors were studying a number of projects. These are investments in greenfield power development, namely: a solar farm in Alaminos, Laguna, and a diesel power project in Pililla, Rizal.

“We’ll start with the 150 MW [and] 300 MW eventually,” Mr. Francia said about the Pililia diesel-powered plant.

He said the project started its construction phase and is expected to be completed by end-2020.

“Before we acquired Phinma Energy, [it] had 430 MW of attributable capacity,” he said, referring to the acquired company’s share in megawatts in the projects it had partnered with other investors.

In November, AC Energy Philippines said its board had ratified the executive committee’s plan to enter into a share purchase agreement with the Philippine Investment Alliance for Infrastructure (PINAI) fund for the acquisition of the latter’s ownership interest in Philippine Wind Holdings Corp., the parent company of North Luzon Renewables Energy Corp.

North Luzon Renewables owns and operates an 81-MW wind farm in Pagudpud, Ilocos Norte. PINAI is a fund composed of Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System.

The board also approved the purchase of up to 100% of PINAI fund’s ownership interest in San Carlos Solar Energy, Inc. (Sacasol), which owns and operates a 45-megawatt (MW) solar farm in San Carlos City, Negros Occidental. The solar farm is operating under the feed-in-tariff (FiT) regime.

Also approved was the acquisition of up to 100% of PINAI fund’s ownership interest in Negros Island Solar Power, Inc. (Islasol), which owns and operates an 80-MW solar farm in Negros Occidental.

On Monday, AC Energy Philippines signed a share purchase agreement with PINAI to buy its full ownership interest in Islasol.

Mr. Francia said the company is in the process of signing a similar agreement for the other energy projects.

Day6: Defying Gravity

By Cecille Santillan-Visto

Concert Review
Day 6 World Tour: Gravity in Manila
Araneta Coliseum, Nov. 23, 2019

HIGH FLYING Jae during the Day6 Gravity concert in Manila

WITH AT least two of Korea’s rock bands currently on hiatus, there is a clamor for musicians to fill the void. The members of CNBLUE and FTIsland are serving the military and audiences worldwide are craving for more talents to step up to the plate and provide the kind of music that these two established bands are known for.

Day6 of JYP Entertainment has certainly risen to the occasion, and proved that they can hold their own in a field that was once dominated by more experienced bands. It already has two world tours under its belt between 2018 and 2019, and rounded up Japan in a series of concerts last year.

Leader Sungjin, lead guitarist Jae, bassist Young K, keyboardist Wonpil and drummer Dowoon certainly made a huge splash during their first concert, Day6 First World Tour: Youth in Manila on Oct. 6, 2018 (see related article: https://www.bworldonline.com/the-dawning-of-day6/), so much so that they returned to the country a year later for a second serving of spectacular live music.

Day6 World Tour: Gravity in Manila quickly sold out shortly after producer Pulp Live World began ticket sales. On show day, the Araneta Coliseum was virtually a white ocean, with spectators wearing the group’s official light band. From a relatively small venue that was the New Frontier Theater only a year ago, the Big Dome, which has welcomed some of the biggest names in the entertainment world, hosted Day6. The 10,000-seat coliseum was filled to the brim.

Day6 ensured that the show would be worth the while of MyDays, their fandom. They dished out 24 songs, not counting the musical solo of each member and a delightful mash-up of their originals with those of established singers.’ For the mash-up portion, they sang Ed Sheeran’s “Shape of You” with “Like That Sun,” “Treasure” by Bruno Mars with their own “Days Gone By,” and Daft Punk’s “Get Lucky” and “Blood.”

From the first chord played in “Best Part,” a track from their latest album, The Book of Us: Gravity, to the last synth sweep in “Freely,” the Manila concert was fun-filled, memorable, and definitely makes the audience realize that Day6 is such an underrated band.

The fans also helped set the dazzling concert mood by the synchronized waving of their white handkerchiefs during the opening song, a project that visibly pleased the boys.

The curtain raiser was followed by “Sing Me” and “I Wish,” before the band members moved to play “Somehow,” “Time of Our Life,” and “So Cool.”

For most of the concert, the crowd sang along with the band but the virtual videoke session was more pronounced in “I’m Serious” where the fans sang the chorus, and in “Congratulations,” where Day6 allowed the spectators to sing the first few stanzas of the song.

It was amazing, to say the least, to see the whole Araneta at one with the band by clearly singing the Korean verses.

Especially for the Manila leg, Day6 performed on an extended stage, bringing along their instruments to be closer to the fans. They said it was the first time that they did it during the Gravity world tour outside Seoul. The viewers reciprocated the gesture by their fantastic reaction, cheering on the boys in every number.

The group whipped up “How To Love,” “For Me,” “Wanna Go Back” on the extended stage before returning to the main platform for the mash-ups.

During the concert, the Korean boy band admitted that their journey as a group since their launch in September 2015 was never easy. Jae was so touched by a video prepared by the fans, that the lead vocalist and guitarist unabashedly cried on stage.

The last few songs to close the show were equally impressive, including “Warning,” “Shoot Me,” “Cover,” “You Were Beautiful,” and “Dance, Dance.”

Day6 connected with their Filipino fans more this time than in their first Philippine concert last year. Despite the loud instruments and the boisterous interaction between sets, Gravity in Manila was intimate, personal, and undeniably struck a chord with the audience. With that kind of performance, Day6 will continue to defy gravity as there is nowhere for the group to go but up.

Negative rates starting to worry ECB

FIVE WEEKS since Mario Draghi retired from running the European Central Bank (ECB), finding an outright fan of his legacy of negative interest rates has become a lot harder.

Governing Council members, who collectively lowered the key rate to minus 0.5% shortly before Mr. Draghi’s term ended, are increasingly portraying it as a necessary evil that shouldn’t be compounded. Sparse communication on monetary matters by his successor as president, Christine Lagarde, hasn’t dispelled that impression.

Banks have picked up on the mood change, dropping predictions that Ms. Lagarde — under the guidance of Chief Economist Philip Lane, the intellectual standard-bearer who proposed the latest cut as part of a stimulus package — would ease again at her first policy meeting on Dec. 12.

It’s a striking development for an institution whose credibility hangs on the promise that it can always do more if needed to revive inflation, and whose policy guidance explicitly states that rates can still fall further. It suggests that a strategy review planned by the new chief will need a thoughtful scrutiny of the toolkit.

“We don’t expect they’ll cut rates further,” said Sarah Hewin, chief economist for Americas and Europe at Standard Chartered Bank. “I’m not sure there is a consensus that negative rates are bad, but I’m wondering whether with this transition from Mr. Draghi to Ms. Lagarde — a new broom at the helm — there’s an opportunity to vocalize their concerns.”

Mr. Lane has defended negative rates as a complement to other measures that aim to spur economic activity. In one speech last month, he said they aren’t “super loose” — citing the absence of a price surge as a demonstration of that. In another, he said the policy forces banks to chase higher investment returns.

Aline Schuiling, an economist at ABN Amro Bank NV, reckons the weakness of the economy means the ECB will cut again, probably in March. There is “some recovery in growth, but not very spectacular,” she said.

Yet the lack of a broad public defense for negative rates has let a chorus of criticism from bankers fill the void. Among them is Deutsche Bank AG President Karl von Rohr, who last month described them as “the biggest challenge facing the European financial industry.” Even the ECB’s own financial stability review flagged the risks of ultra-loose money.

Two of the ECB’s prospective new board members took a similarly cautious view when quizzed by the European Parliament this week. Italy’s Fabio Panetta said officials need to be alert to the “unintended consequences of monetary policy.” His German colleague, Isabel Schnabel, said the institution should listen carefully to voters’ concerns on sub-zero rates.

Such discontent is vocal in some euro-zone countries, notably Germany and the Netherlands. Reflecting that, ECB officials are also privately encountering pushback from some finance ministers, according to people familiar with the matter.

Bundesbank President Jens Weidmann and Dutch central bank Governor Klaas Knot, already skeptics of loose policy, look unlikely to back another rate cut unless the economy worsens significantly. So far, it seems to be stabilizing. At Mr. Draghi’s final meeting in October, one participant made a plea for “patience” to allow current easing to work.

Bank of Spain Governor Pablo Hernandez de Cos said this week he couldn’t rule out that sub-zero policy could eventually harm monetary-policy transmission.

The chief worry is that policy is close to the so-called reversal rate, where the harmful effects outweigh the good. Mr. Lane’s denial that such a situation is near may be valid, but it’s also unsurprising that the chief economist wants to dispel any impression of monetary impotence.

He and many of his colleagues, including Ms. Lagarde, do make the point that more government spending could speed up the path to normalization. Germany, the prime candidate to do that, isn’t rushing to respond though, and a newly created euro-area fiscal capacity is tiny. — Bloomberg

SMC plans fundraising for infrastructure projects

SAN MIGUEL Corp. (SMC) is planning to raise funds from the overseas and local debt markets for its major infrastructure projects and investments.

In a disclosure, the listed conglomerate said its board of directors gave the go-signal for the establishment of a medium-term note program of $3 billion (around P153 billion). From the program, SMC will initially issue $500 million worth of perpetual securities. It will be registered at the Singapore Exchange.

SMC said this will allow the company to “tap the financial market for funding through the issuance of securities, including but not limited to corporate notes, bonds, and perpetual securities and other similar instruments at different currencies (other than Philippine pesos), whether considered debt or equity for accounting purposes.“

“The establishment of the program will give the company ready access to funding and give the company the flexibility to fund its contemplated investments and projects… as well as the refinancing of its existing obligations and for other general purposes,” SMC said.

Among SMC’s projects include the P62.7-billion Metro Rail Transit Line 7 and the P734-billion Bulacan airport project, which is being undertaken with the government.

Meanwhile, SMC, in a separate disclosure, said its board also approved the filing of a shelf registration with the Securities and Exchange Commission (SEC) for P60 billion worth of short-term commercial papers. The initial issuance of commercial papers will be P15 billion, which may be oversubscribed by up to P5 billion.

Shares of the conglomerate at the stock exchange were flat on Thursday at P160 each. — Denise A. Valdez

Strange fruit

By Carmen Aquino Sarmiento

Movie Review
Metamorphosis
Written and directed by Jose Tiglao

WITH THE contentious SOGIE (Sexual Orientation and Gender Identity Expression) Equality bill pending in congress, a film that purports to tackle the obscure and oft-misunderstood matter of intersexuality raises expectations. To make sure that even the thickest audience member understands what he’s getting at, the writer-director Jose Tiglao repeats every heavy-handed metaphor at least twice. For example, the opening lines about a legendary mango tree in the Bonifacio family’s orchard which bore an atis comes up every so often. In case you didn’t get it, the atis is supposed to stand for the protagonist: 14-year-old Adam Bonifacio (Gold Azeron).

To make sure we get the obvious implications of the film’s title, young Adam has a small glass jar on his desk, crowded with cocoons. He is also “artistic,” a recognizably gay stereotype. Thus, he is charged with rendering the stiff, hard-edged illustrations for the lame school projects their teacher assigns. His class partner is his high school’s oldest student: the 20-something town prostitute Angel (Iana Bermudez). She turns up at Adam’s house at 10:30 p.m., in pek-pek shorts and a tight tank top, ostensibly to do homework, and is promptly ushered into Adam’s bedroom by his unusually accommodating mother Aling Elena (Yayo Aguila). Although he has a writing desk in his bedroom, Adam lies prone on his bed, and sets the picture which Angel brought for him to copy, behind him, so that he has to keep contorting his body, twisting and straining his neck, just to look at it.

The Bonifacio family is certainly atypical. We are to believe that his parents never thought that his having two sets of human genitalia was odd, and that Adam was never examined by a medical doctor throughout his 14 years. (During the Q&A after the screening, the director said he also wanted to show how the government has been remiss in responding to its citizen’s health needs.) Adam’s parents got him quality art materials and a Discman but they never took him to a doctor. To bolster the plausibility of such an unlikely scenario, one of the film’s producers, a youngish woman, further claimed that although her own parents were both government employees, they never took her for a check-up or treatment with a medical professional through her growing years. Thank you, Mom and Dad.

Much is attributed to Aling Elena’s being illiterate. For example, she sticks a serving spoon in a bowl of rice, then uses her bare, saliva-coated fingers to scoop up clumpfuls, and dump these on her family’s plates. Her husband, Adam’s father (Ricky Davao), is a Christian pastor, obnoxiously spewing Bible verses. He holds praise and worship services on their tiled, balustraded terrace. A medical doctor is among his regular congregants. The family certainly appears middle-class. They live in a concrete two story house in a town with cement roads, and even a motel which Angel frequents.

Angel takes a liking to Adam. They are together when he gets his first period, somewhat late at age 14. So, the drama of having a clueless Adam bleed into a pristine stream while cavorting with a pok-pok in a wet T-shirt was the reason for setting up his parents as negligent to the point of abuse? This calls for more clunky symbolism, with several scenes afterwards of Adam, wrapped up in sheer nylon mosquito netting and agitatedly rolling about his bed, while blood seeps through his shorts. Remember those grade school natural science lessons about the pupa and the chrysalis, dummy. Perhaps impelled by concern over their stained bedsheets, his oblivious parents finally decide to consult their swishy congregant Dr. Mortiz (Bodgie Pascua). He refers Adam to the Manila-based endocrinologist Dr. Tolentino (Ivan Padilla) whom he repeatedly stresses is a wealthy, gorgeous hunk, hence a catch, an obvious object of desire.

Disturbingly, mere days later, upon receiving Adam’s test results, Dr. Tolentino pressures the Bonifacio’s to immediately decide on sexual reassignment surgery for their son. The Philippine Medical Association should take notice of this extremely ill-considered and unprofessional behavior which is portrayed as being entirely normal and usual among members of their profession. Weirdly, Dr. Tolentino, who is an endocrinologist and not a family medicine physician, turns up at Adam’s very urban home town to conduct a half-assed “medical mission” out in an open field: just a desultory handful of patients queued in a single line, and without any medical support staff such as nurses to take their vital signs or keep records, not even a pharmacy station. The film is set in the late 1990s when Barangay Health Centers existed. But this pathetic excuse for a medical mission becomes the unlikely opportunity for Dr. Tolentino to get stranded in Adam’s hometown due to a sudden rainstorm. His only recourse is to seek shelter in the Bonifacio home, although he is a customer of the local motel, which he and Angel use for their short time trysts.

The ever-accommodating Aling Elena does not put up the young virile Dr. Tolentino in a spare room or on their living room sofa. She has him bunk with Adam, whom she realizes possesses a penis, a vagina and also a rectum for that matter — or all the equipment for a pedophile’s delight. The Bonifacio’s do not take their only child into their bedroom either, but complacently leave him alone with an almost total stranger whom they have met, perhaps twice at best. It is a restless night of more raging hormones for poor Adam. This inspires him to do a languorously sensuous head-and-shoulder-rolling dance which is uncannily similar to that of Arthur Fleck in the public toilet (The Joker, 2019) after his subway killing spree. Tiglao declared though that even if parts of this film were re-shot just three weeks before its premiere (in order to get the original X-rating mitigated to an R-16), or after The Joker had become a Philippine box office hit, Adam’s little interpretative dance antedates Joaquin Phoenix’s.

Over-stimulated by his night with the hunky Dr. Tolentino, Adam engages in self-exploration, probing himself with a cold white plastic ballpoint pen — not with his natural God-given fingers — while lying supine in his bed. His mother suddenly calls him to dinner, startling him so that he falls out of bed and lands with a thud, flat on his back on the floor. Miraculously, the plastic ballpoint pen does not perforate or bruise his tender lady parts. He does get to reply, “Coming!” which may be the only intentionally humorous line in this ostentatiously sincere film. A coming-of-age moment is when Adam decides to attend his junior-senior prom stag. Unfortunately, his sense of style is severely limited by the selections from his mother’s wardrobe. Say no to his dress: he turns up in a dowdy long-sleeved button-down polo shirt and a prim, non-descript A-line skirt, with no accessories or make-up, except for a Dinky Soliman streak in his hair. The Queer Eye guys would have a field day making him over.

Because of its au courant topic and politically correct, though ham-fisted, good intentions, Metamorphosis was well-received by the wannabe indie crowd culturati. The scenes which merited its original X-rating have been revised though its ending has what may be considered its money shot: buck-naked Adam sprawled on a rock, basking in the sun at his and Angel’s favorite swimming hole. There is no visible prosthetic female vulva, but the camera lovingly lingers on his flaccid penis, which is the color of tocino.

AMA Online Education to offer students data analytics courses

AMA Online Education (AMA OEd) said it hopes to graduate over a hundred thousand data analytics-ready students beginning 2021 as part of a partnership with technology firm SAS, which will help develop basic and advanced courses for both IT and business students.

“We have 150,000 students, both in online and blended programs. Majority of our students are enrolled in IT and Business programs, so about 80% of them will be SAS-trained by 2021,” Christopher P. Satulan, chief operating officer of AMA OEd, said at a media briefing in San Juan City last week.

AMA OEd and SAS, an analytics software firm based in North carolina, signed a partnership Friday for courses which will be compulsory for third and fourth-year IT and business students beginning next year.

“There is a scarcity of data analysts in the country, and we are in the Industry 4.0 wherein most industries need them. Our students, trained by SAS, will be helping these industries. We can provide them our graduates,” Mr. Satulan said.

Under the partnership, SAS will be providing AMA OEd’s data analytics students with “localized” content.

Data analysis, according to Mr. Satulan, will be integrated in the school’s research program.

The partnership will be carried out in cooperation with Singapore consulting and technology services company Thakral One.

“It was SAS and Thakral One that trained the professors within AMA, and then they should be able to deliver the whole course,” SAS Philippines Country Manager Ryan C. Guadalquiver said.

Thakral One Philippines Country Head Melissa M. Egasani said it took only a “few days” to train AMA OEd’s mentors on data analytics “because of their technical background.”

She noted that the limited number of data science experts in the country encourage practitioners to teach at colleges and universities.

“We actually encourage our senior consultants to teach at schools. We also have partner clients and organizations that do the same, so there’s that thrust to give back to the academe among our practitioners,” Ms. Egasani said.

SAS, which has at least 50 industry partners in the Philippines, will also be assisting students during their internships.

“We will partner with our client companies (for) internships; and from there, they could be evaluated for possible employment,” Mr. Guadalquiver said.

He added that many of SAS partners have been looking for data analytics-trained workers.

“Our partners have been asking for them. Even us at SAS, we have a problem also in terms of talent scarcity,” he said.

AMA OEd said the partnership includes a three-month boot camp, which is designed for new graduates to deepen their analytics knowledge and skills.

“After finishing the boot camp, graduates will be given preferred employment referral among SAS partner organizations in the fields of data science, computer analytics, and AI,” the school said in a statement.

Mr. Satulan said the data analytics program will eventually be offered at AMA’s 200 campuses nationwide. — Arjay L. Balinbin

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