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PECO hits back at ERC over ‘heavily worded’ notice

PANAY Electric Co., Inc. (PECO) said the “heavily worded” notice of the Energy Regulatory Commission (ERC) on the power distribution company’s alleged operational lapses omitted the valid points in its favor.

“Regarding ERC’s claim that PECO’s protective devices were not properly rated and designed, we assure everyone that PECO has multiple protective devices that have proper ratings and designs for each of its feeder lines and down to its secondary lines,” it said in a statement on Thursday.

“Moreover, the fires that happened didn’t involve PECO’s lines as most of them are attributed to the improper bundling of telecom and cable lines which oftentimes short out,” it added.

PECO was responding to a directive issued by the ERC dated Nov. 26 and released to reporters on Wednesday.

The regulator told PECO’s directors and officers to explain violations of provisions of the following: Philippine Distribution Code (PDC) 2017 Edition; Amended Distribution Services and Open Access Rules (DSOAR); Amended Elevated Metering Center (EMC) Rules; and ERC Resolution No. 12, Series of 2009, or the Guidelines for the Accreditation of Satellite Laboratories of Meter Shops.

“We would like to point out that with our current protective devices in place, the lives and properties of our valued consumers were never affected in all the fire incidents related to this matter not unless the fire comes from within the consumers’ structure already,” PECO said.

“Regarding failed voltage tests in certain locations, the areas visited by the ERC ocular inspection team that had low voltage levels were actually in areas that had electrical pilferage present which resulted in the dropping of the voltage level due to the unregistered loads in the areas,” it added.

PECO also gave its side on the issue of leaning poles and those that are in unsafe positions, which were raised by the ERC.

“We would like to stress that PECO has a regular pole replacement and relocation program in place every year in order to cope up with the DPWH (Department of Public Works and Highways) projects being implemented around Iloilo City. We also have maintenance activities in order to straighten certain poles that tend to lean after some time. This is a year-to-year activity since coordinating with telco and cable companies take time,” it said.

The company also clarified that it had filed for 40 elevated metering center (EMC) sites during the last regulatory period, contrary to the ERC’s findings.

It added that contrary to the ERC report, PECO had been constantly coordinating with the ERC Visayas head office on its documentary requirements on the renewal of its meter shop certificate of authority.

“Suffice it to say that, through it all, PECO has been trying its best to abide by the rules and regulations of the ERC despite multiple external factors beyond our control. We communicated to the ERC that should they need further clarification on certain matters, we are very much willing to cooperate as we have been doing so consistently,” the company said.

“We in PECO are surprised by the seeming slant that the ERC is taking and we just hope that the ERC will not allow itself to be manipulated by the propaganda of economic saboteurs and give PECO a fair assessment,” it added. — Victor V. Saulon

Employers call for ‘balanced’ NCR wage for domestic workers

THE EMPLOYERS Confederation of the Philippines (ECoP) said the Metro Manila wage board needs to come up with a “balanced” wage ruling for domestic workers, adding not all household employers can afford higher pay.

In a Dec. 2 statement, ECoP said it participated in a public wage hearing lead by the Regional Tripartite Wage and Productivity Board — National Capital Region (RTWPB-NCR) which is hearing evidence to set new wages for domestic workers. ECoP added that it called for a fair salary hike that will consider the needs of the domestic workers and the ability of household employers to pay.

“ECoP said not all household employers are business owners. A large majority are middle-income and minimum wage earners who, like the domestic workers, are trying to make both ends meet,” ECoP said.

ECoP added that the board has yet to officially release the exact amount that it has set for its new wage order.

Last week, Labor Secretary Silvestre H. Bello III said that the NCR wage board has decided on a P5,000 minimum wage for domestic workers. This is subject to review by the National Wages and Productivity Commission (NWPC).

Mr. Bello added that he personally prefers a higher wage hike but granting a wage higher than P5,000 is beyond his mandate.

ECoP said: “Any excessive increase will impact the household employers’ ability to hire a domestic worker and maintain a family with two income earners.”

The last NCR wage order was issued on Dec. 16, 2017 and set the domestic minimum monthly wage at P3,500.00. — Gillian M. Cortez

I heard you make movies

The Irishman
Directed by Martin Scorsese
Netflix

IN The Irishman (2019) someone puts a question to Frank Sheeran (Robert De Niro), the same question that is title of Charles Brandt’s 2004 book (I Heard You Paint Houses) — the same question one might ask of Martin Scorsese with the same innocuousness, and just the hint of something more.

Arguably the question is bullshit — Bill Tonelli in a Slate piece pokes holes in Sheeran’s story and on the surface the very premise of the film sounds implausible: an armed Forrest Gump wandering the margins of mob history, delivering boxloads of Browning M2 machine guns for the Bay of Pigs invasion; walking into Umberto’s Clam House to shoot “Crazy” Joe Gallo; walking into an anonymous house in suburban Detroit with gun in hand, right behind Jimmy Hoffa (in Brandt’s book Sheehan goes further to claim he delivered three rifles to a pilot days before the Kennedy assassination, and half a million dollars to US Attorney General John Mitchell).

Tonelli even makes fun of the book’s title: “In all of mob literature” he asks, “fictional and factual, has anyone ever uttered such expressions about painting and carpentry?” I wouldn’t know, not familiar with mob literature, and what mob cinema I’ve seen — no.

But it’s a hell of a phrase: “I hear you paint houses.” “I hear you make movies” — and I remember a scene in Resident Evil: Retribution where Milla Jovovich hands Michelle Rodriguez a pistol and ties film and violence together with a single throwaway statement: “It’s just like a camera: point and shoot.”

The film’s themes also rope in one of Scorsese’s pantheon figures, John Ford, whose late masterwork The Man Who Shot Liberty Valance turned on the phrase: “When the legend becomes fact, print the legend.” Ford had a way of making historical accuracy seem irrelevant or at least dull; someone once pointed out that the climactic chase in Stagecoach would have ended sooner if the Apaches had shot the horses. Have no real response to that, save the thought probably doesn’t occur when one is actually watching the film.

Actually, the character of Sheeran himself doesn’t exactly pop out of the screen: this is one of De Niro’s more introverted performances, where he plays a lump that if allowed would rather blend into the background — someone who treads lightly but carries a loud .38 Special.

Or so Sheeran says — again we need to take his word with a chunk of salt (Tonelli scoffed at the idea that he ever took a life, though I wonder if the writer ever considered Sheeran’s war record). It helps that Scorsese does away with Brandt as a character and has Sheeran face the lens directly as an old man (the camera wandering in from outside past wizened figures tottering on canes and walkers, to come upon our protagonist in a wheelchair, lost in his memories).

That image (an old man and his memories) starts and ends the film; the old man experiences two kinds of flashbacks — one being a trip from Philly to Detroit, the other the various memories prodded along the way, like the swarm of birds provoked in a forest by the passage of a rhino. One kind the narrative spine, the other the narrative meat, the retirement home scenes framing the whole.

Gradually an image forms: of truck driver Sheeran and his chance meeting with Russell Bufalino (Joe Pesci, reportedly coaxed out of retirement after being asked 50 times, and terrific), of his later meeting with James Riddle Hoffa (Al Pacino) and their growing brotherly bond.

Sheeran’s troubled relationship with Hoffa recalls Scorsese’s earlier autobiographical Mean Streets with Hoffa as Johnny Boy, playing irrepressible Id to De Niro’s Sheeran playing the dutiful Charlie (who — following Mean Streets schema — also plays the director’s cringing conscious-stricken self). De Niro was the original Johnny Boy and lit up the screen with his unpredictably hilarious-yet-horrifying antics; as this film’s Charlie, he’s if anything better, the heroically staunch spear-bearer of first Russell and later Jimmy Hoffa. Call Sheeran a man of faith, a faith established by an ancient organization with laws and secrecy and wide-reaching influence; call the film a test of Sheeran’s faith versus his family (with his daughter Peggy [Anna Paquin as an adult, the haunting Lucy Gallina as a child]* standing as witness), versus his friend Hoffa.

* As for the whole brouhaha about Paquin’s character’s relative silence — there’s some point to the Bechdel test, but the impact of Peggy depends mainly on the idea that she stands aside watching what’s going on and keeping everything to herself, only speaking up (as an adult at least) when it most mattered. Like her father she sees but is silent; like her father she remembers, feels, judges.**

** As for Peggy’s judgment I’m guessing she keeps arms’ distance from her father and Russell because they’re killers; Hoffa while egotistical and corrupt is not — at least not directly, as far as we know. It’s the stink of blood that makes the difference.

The latter half of the film plays out like The Last Temptation of Frank (or, going back even further, Mean Streets: Detroit) — the power figure rising, hitting his plateau, striving for higher, being betrayed by his Judas. Frank/De Niro as Judas/Charlie/Scorsese registers the journey as near imperceptible tics on the face, fissures on what is supposed to be a professional mask, and a grim line of a mouth that warps gradually into a grimace.

Is Scorsese replaying his greatest hits? I’d say he’s reviewing them, slowed down and distorted, turning them over in his head in the hope, possibly vain, of making sense of what he had wrought, wrote, rote. His usually operatic rhetoric has been dialed down to a whisper, his visual brio reduced to a simmer; he seems subdued, confronting what may be his, Frank’s, Jesus’, Charlie’s final adversary. If, as detractors say, this is yet another of Scorsese’s gangster flicks it has the look and feel of a final Scorsese gangster flick — his last word on the subject.

Saying “dialed down” doesn’t mean “totally absent.” The opening tracking shot and barber shop hit show Scorsese still has the spark, just isn’t putting it front and center; the Joe Gallo hit is a marvel of blinking bright reds and whitewashed walls drenched in sickly green neons. He’s also taken to perching the camera from on high to look down on a street corner or intersection of hallways, suggesting that the protagonist or character is approaching a dramatic turning point.

Sound may be the film’s most innovative feature: Sheeran’s offscreen narration opens the picture and suddenly his voice speaks up, continuing his train of thought; the scoring is relatively subdued, with long stretches of quotidian life punctuated mostly by the clink of silverware or traffic noise or occasional bird call; Sheeran on the phone mutters painfully hypocritical words of reassurance to a distressed Jo Hoffa (Welker White, her voice muffled so that emotion and not specific words are more audible).

Not a perfect picture: the digital de-aging looks grotesque, actually looked even more grotesque on the big screen with De Niro’s and Pesci’s faces looking boiled lobster red, their hunched bodies walking slowly, carefully as if they were in their frail seventies (which they are) — watching the film on Netflix streaming I see that they have apparently corrected the offputting red, though the old-man movements remain. I remember how in Once Upon a Time in America Scott Tiler’s performance as the young Noodles dovetailed so lyrically into De Niro’s adult figure and wonder why Scorsese couldn’t cast accordingly. Also wonder if Scorsese couldn’t have inserted a little more skepticism about the veracity of Sheeran’s claims, or at least suggest more that the man’s memory is unreliable — possibly De Niro (who produced) and Scorsese did buy Sheeran’s story hook line and sinker, only pivoting in interviews (emotional truth takes precedence over historical) in response to Tonelli’s article.

Oh and the titles that give us the various mobsters’ varied fates (“shot in the head, 1980”; “killed, 1979”): what was it about the period of 1979 to 1980 that nearly everyone was bumped off? One of the film’s biggest laughs happens when we learn that “Tony Jack” was well-liked by all and died of natural causes in 2001.

The final 50-plus minutes (skip this and the next paragraph if you haven’t seen the film!) recalls Father Rodrigues’ odyssey as a changed man moving through a changed more accommodating Japan, in Silence — what to do with yourself when you’ve won the one thing you desire above all (the cessation of others’ suffering) at the price of the one thing you value above all (your faith). Rodrigues’ struggle is frightening in its way — he can’t utter even a whisper of dissent — but Sheeran, in total freedom and with only passing interest from law enforcers (a pair of federal agents, asking him to come clean), learns an additional lesson: with the passage of enough time no one cares. People die, people forget, things change irrevocably. Rodrigues faced the absolute terror of totalitarian repression for the rest of his long life: Sheeran faces the absolute invincibility of indifference.

As for Tonelli’s points, I find them believable, including one that even Tonelli concedes: Sheeran must have been in the car that drove Hoffa to his death otherwise Hoffa would have never climbed in. Sheeran was involved, however tangentially, and likely knew what’s going on. All this — Sheeran shooting Hoffa, shooting Gallo, all the other killings, even delivering guns for the Bay of Pigs — is his way of blowing up his reputation and improving his stature that his fall might be all the greater, confessing crimes to give substance and scope to his real central sin: betraying the friend who trusted him. As with Willem Dafoe’s Jesus, much of the whole three hours might just be taking place inside Sheeran’s guilt-wracked head — the ultimate jail cell and torture chamber.

John Ford once appeared before the Director’s Guild to say “My name’s John Ford. I make Westerns.” The matter-of-fact statement nicely sums up what the man was about, the way this film pretty much sums up what Scorsese’s about (and, as I say that titles come to mind contradicting the assertion: Alice Doesn’t Live Here Anymore; Kundun; Hugo). He did do this film, that much is clear, and I think it’s terrific, the best American production of the year — which I think is true even if you didn’t like the picture.

Life insurers in Japan are taking more dollar risks

AS THE DECADE that welcomed unprecedented quantitative easing (QE) comes to a close one thing is clear: Japan life insurers are taking more and more risk with their investments.

A combination of ever lower bond yields and elevated costs have seen Japanese life insurers cut their hedges on dollar investments to the lowest in at least 10 years, according to calculations by Bloomberg. Despite holding $354 billion in dollar-denominated assets, nine of the biggest insurers had hedged just $164 billion of them against a decline in the greenback, the data as of the end of September showed.

The steady reduction of protective bets against adverse dollar moves comes as elevated hedging costs turned Treasuries into negative-yielding debt for Japanese investors. The slump in foreign-exchange volatility has enhanced the allure of unhedged dollar positions, yet leaves insurers increasingly at risk of a sudden surge in the yen.

The reduction in hedging suggests “life insurers expect any strength in the yen to be limited,” said Shinichiro Kadota, a senior foreign-exchange and yen-rates strategist at Barclays Plc in Tokyo. “Given caution has receded toward a stronger yen, a sharp gain could see an undue impact” on hedging activity, he said.

Four life insurance companies, including the biggest players Nippon Life Insurance Co. and Japan Post Insurance Co., said in October that they plan to increase holdings of unhedged foreign debt in the second half of the fiscal year ending in March.

The yen is on track for its fourth straight year of modest gains against the greenback and has been trading in the smallest range on record this year. A combination of factors such as the unhedged outflows and the steady growth in Japanese acquisitions abroad have all helped keep a lid on yen strength.

Strategists are expecting a mild appreciation of just 3% to the 105 level by the end of 2020, according to data compiled by Bloomberg.

Meanwhile, buying protection against a stronger yen for six months costs Japanese investors 2.14% on an annualized basis, according to Bloomberg data. That compares with the 1.76% yield available from benchmark 10-year Treasuries, and the 2.21% an investor would get from its 30-year equivalent.

“There is little demand for Treasuries from Japanese investors because hedging eats up their yields,” said Hiroshi Yokotani, managing director and portfolio strategist for fixed income and currencies at State Street Global Advisors.

Almost seven years of unprecedented Bank of Japan stimulus has driven much of the domestic yield curve into negative territory, sending the country’s investors abroad in search of returns and adopting riskier strategies such as unhedged positions. The top life insurers are now turning to equities and corporate bonds to safeguard returns, according to recent strategy presentations.

The nine insurers studied are hedging 46.3% of their dollar-denominated assets as of September, down from 73.2% a decade ago, according to a Bloomberg analysis. As an industry, they own 100 trillion yen ($919 billion) in foreign securities

With hedging euro positions actually returning a premium for yen investors, European securities have proven popular in the Asian nation. After adjusting for exchange-rate fluctuations, life insurers’ holdings of euro assets increased 14% during the six months ended Sept. 30, compared with a gain of 8.6% in dollar-denominated securities.

“Hedge costs are still too high,” said Minori Uchida, Tokyo-based head of global market research at MUFG Bank Ltd. “Because the yen’s volatility remains low, investors are taking a wait-and-see stance for hedging.”

The yen has appreciated against all its major peers so far this fiscal year, underscoring the risk of unprotected overseas investment. Life insurers held a higher hedge ratio for the Australian dollar at 62.7%, compared with 43.7% for the Canadian dollar. — Bloomberg

Roxas Holdings swings to loss

ROXAS Holdings, Inc. (RHI) swung to a net loss in its fiscal year ended Sept. 30, due to lower sugar production and higher costs.

In a statement, RHI said its attributable net loss stood at P1.884 billion for 2019, from a net income of P47.66 million a year ago, due to “higher feedstock costs, lower sugar production volume, and increases in interest costs.”

Revenues grew 33% to P6.554 billion, with sale of goods growing 20% to P5.833 billion, and sale of services surged to P721.161 million from P48.498 million. This was driven by higher prices and sales of alcohol, as well as increase in revenue from milling activities, which reached P1.5 billion.

However, cost of sales and services ballooned 57% to P6.431 billion.

“We faced a very tough market during the past year. Philippine sugar output for Crop Year 2018-2019 was down 17.12% year-on–year at 2.072 million metric tons due to unfavorable weather conditions,” RHI Chairman Pedro E. Roxas said in a statement.

“Talks on the liberalization of the sugar industry were also rampant during the period, causing a softening of sugar prices… Our results reflect the impact of these challenges,” he added.

The Department of Finance (DoF) proposed the liberalization of sugar imports in September in a bid to help food processors to be more competitive in the global market. However, senators opposed such a move, saying this will lead to the loss of livelihood of sugar farmers and workers.

Higher interest rates weighed on the company’s efforts to reduce its debts, which declined 8% to P9.8 billion. The company also utilized net earnings from sale of some assets in November to reduce long-term debt to P900 million.

“We will continue to look for opportunities to significantly reduce our debt levels,” RHI Executive Vice President and Chief Finance Officer Celso T. Dimarucut said.

Meanwhile, RHI’s ethanol business improved in 2019 due to system and equipment upgrades.

“Our ethanol units registered the highest production volumes in the past three years, better than the target for 2019,” RHI President and Chief Executive Officer (CEO) Hubert D. Tubio said.

Roxol Bionenergy Corp. (RBC) reported the highest methane fuel displacement at 60.67% in May 2019 as anaerobic digesters improved in production of biogas.

Mr. Tubio expressed hope the next fiscal year will be better for the company as senators unanimously voted against the liberalization of sugar importation, “which should help stabilize the market.”

“RHI is a resilient company that continues to seek ways to refine its competitive advantage despite the many ongoing industry challenges. We are actively engaging our stakeholders as we work closely with government in crafting solutions to issues hounding the industry,” he added.

Aside from RBC, RHI, which is described as the largest integrated sugar business in the country, manages sugar miller Central Azucarera de la Carlota, Inc.; ethanol producer San Carlos Bioenergy; and RHI Agri-business Development Corp.

Shares in RHI fell 1.52% or 0.03 centavos to close at P1.95 apiece in the stock exchange on Thursday. — Vincent Mariel P. Galang

HK bankers say city’s divide infecting office life

HONG KONG — An economist says he was pushed out of his job at a Chinese bank in part due to his views on the impact of Hong Kong’s protests. A brokerage employee in the city is looking for a new job because she disagrees with her bosses’ politics. An investment banker says he avoids talking to most colleagues about the unrest, fearing it may damage his career.

At financial firms across Hong Kong, personal political views that used to have little bearing on work are taking on new significance as the city’s pro-democracy protests harden opinions on both sides of the debate.

For some in the industry, it’s making an already difficult business environment even tougher to navigate and fueling concerns about Hong Kong’s future as one of the world’s premier financial hubs.

The change is being felt most acutely at state-owned Chinese financial companies, where several backers of the protests say they fear retribution from superiors if they’re found to attend rallies or otherwise support the pro-democracy movement. Law Ka Chung, the former chief economist at Bank of Communications (Hong Kong), has gone public with his concerns, saying on Tuesday that he suspects he was ousted in part because his research contradicted the Chinese government’s narrative on Hong Kong.

While global banks operating in the city are more insulated from local politics, they aren’t immune. At BNP Paribas SA, a legal executive left the company in September to focus on activism after social media posts on his personal account led to a public apology from the bank.

In Citigroup Inc.’s Hong Kong office, some pro-Beijing staff are now socializing less frequently with their pro-democracy counterparts, with the rift becoming more apparent in the wake of a widely circulated video of one of the firm’s investment bankers getting arrested after a scuffle with police, according to employees familiar with the matter. The employees, who asked not to be named discussing a sensitive subject, emphasized that in most cases the differences of opinion have yet to get in the way of work.

When a JPMorgan Chase & Co. banker from mainland China was filmed getting punched during his lunch break after shouting “we are all Chinese” at a crowd of yelling protesters, several employees complained verbally to their managers about his behavior, a person with knowledge of the matter said. It isn’t clear from the video what initially sparked the confrontation, and there’s no indication it was connected to his employer. Conversations between some JPMorgan staff from mainland China and their peers from Hong Kong have become less frequent since the protests began, two people said.

For senior managers in Hong Kong’s financial industry — which accounts for about 20% of the city’s gross domestic product — the potential for rising workplace tensions adds to challenges that already include a sinking local economy and a pullback in deal-making. Banks have to find ways to accommodate employees with differing views without getting caught up in controversies that damage their brands, said Benjamin Quinlan, chief executive officer of financial services consultancy Quinlan & Associates in Hong Kong.

“Firms need to be much more clever about the way things are handled, carefully balancing free and open thinking while ensuring ongoing employee professionalism,” said Quinlan, a former executive at Deutsche Bank AG.

In response to questions from Bloomberg News, a Citigroup spokesman said the US bank “values diversity and inclusion, which speaks to not just gender or ethnic diversity but also diversity of thought. We respect people with different views and perspectives and our staff and clients respect that diversity too.”

A JPMorgan spokeswoman said the firm’s employees “come from all walks of life and so many different backgrounds and continue to support each other.” BNP declined to comment when the executive left in September, while BoCom didn’t respond to a request for comment.

Law, who spent more than 14 years at the Chinese bank, wrote in an August article that Hong Kong’s protests would deepen the city’s slowdown but that their impact was limited, a view that contradicted the dire outlook in China’s state-run media. Law said he was asked to leave the bank shortly after he shared with colleagues a link to an outside article critical of China’s firewalls and closed system.

He left behind a team of mainly local Hong Kongers. “I wish them good luck,” he said in an interview.

Employees at other Chinese financial firms said they’ve felt similar pressure to toe Beijing’s line.

Man, 25, who works in the back office at a Chinese brokerage in Hong Kong, said department heads of her firm have told employees that they’ll be fired if they participate in pro-democracy protests.

The company sends staff to pro-police rallies, which Man has attended even though she also takes part in pro-democracy protests without telling her employer. While she wants to leave the firm, she’s finding it difficult because most of the job openings she sees in Hong Kong are with mainland Chinese companies. Like others who agreed to speak for this article, she asked to use only one name because of the subject’s sensitivity.

Jason, who works at a Chinese investment bank in Hong Kong, said most of the senior executives at his firm openly condemn the protests and are strongly supportive of Beijing. He said lower-level managers who have lived in Hong Kong for years tend to have a milder stance — supporting the right to demonstrate while condemning violence — whereas middle and back-office workers are typically Hong Kong locals who back the protesters.

Jason said his views place him somewhere in the middle of the spectrum. Wary of offending someone on either side, he takes care to speak about the protests only with his closest co-workers when they’re outside the office on cigarette breaks.

Another banker, surnamed Chan, said he’s part of a small minority of pro-democracy employees at a Chinese securities firm. Fearful of “whistle blowers” who might out him to pro-Beijing managers, he keeps quiet when colleagues discuss the protests at lunch. He says some of his peers have been reported to high-level bosses in China for social media posts that contradict Communist Party messaging.

Chan keeps his own posts on Facebook and WeChat free of politics, though he sometimes shares song lyrics that convey subtle messages of support for the pro-democracy movement. — Bloomberg

S. Korean actor found dead in latest K-pop tragedy

SEOUL — South Korean actor Cha In-ha was found dead in his home, police said on Wednesday, the country’s third young celebrity to die over the past two months as concern mounted over the intense social pressures that artists face.

In an unrelated case, K-pop star Kang Daniel’s management agency Konnect Entertainment said the former member of the hit boy band Wanna One was taking a break from his performing schedules due to “depression and panic attacks.”

The agency said the 22-year-old had recently been showing “frequent signs of worsening health and anxiety.”

While South Korea’s pop culture mostly projects a wholesome image on stage and screen, it has been marred by a series of untimely deaths and criminal cases that have revealed a darker side of the industry.

A police official said Cha, 27, was found dead on Tuesday and the cause of death was not immediately known.

Cha, whose real name is Lee Jae-ho, made his film debut in 2017 and was previously a member of the five-member boy band Surprise U, which released two albums.

The singer-actor had left an Instagram post the day before he was found dead, with a single-line message to his fans: “Everyone be careful not to catch the cold.”

There were no reports to suggest he had been subjected to the kind of personal attacks and cyber bullying that other K-pop artists have received.

His talent agency Fantagio in a statement expressed “the deepest mourning for his passing” and asked the public and the media to refrain from spreading stories about his death. — Reuters

Nestlé to implement gender-neutral parental leave policy

NESTLÉ S.A. on Thursday announced a new global gender-neutral parental support policy, extending parental leave to a minimum of 18 paid weeks from 14 weeks.

Secondary caregivers are given four weeks, after having no previous global minimum.

“Every family is unique, so we have designed a parental support policy that is flexible enough to work for us all. Supporting the healthy development of infants has been a core value of our company since our founding,” Nestlé CEO Mark Schneider said in the statement.

“Our new parental support policy is an important part of our efforts to provide children with the best start in life, by allowing parents to spend more time with their new child.”

Nestlé said that the new policy does not set limits, allowing some places to offer additional weeks of paid leave. The company said that it will provide longer parental leave where local laws require it.

Philippine law requires private and government offices to give mothers 105 days of fully paid maternal leave.

The Expanded Maternity Leave Law also allows the mother to transfer up to seven days of her paid leave to the father, increasing paternity leave to up to 14 days.

Nestlé’s new parental support policy also reinforces employment protection, non-discrimination, health protection, and the availability of flexible working options and breastfeeding support.

Policy implementation begins in 2020. Nestlé expects its global rollout to be completed by the end of 2022. — Jenina P. Ibañez

Australian banks need extra $8.5B to meet tougher rules

WELLINGTON/HONG KONG — Australia’s major banks shrugged off concerns about further weakness in dividend payout ratios and earnings downgrades after New Zealand announced tougher capital requirements on Thursday.

The four Australian banks that dominate the New Zealand market said they will need a combined extra NZ$13 billion ($8.5 billion) to meet the new requirements, significantly less than the NZ$20 billion that had been forecast. They were also granted two years longer than anticipated to reach the higher ratios.

The Reserve Bank of New Zealand (RBNZ) said raising the total capital ratio minimum to 18% for the big four, and to 16% for smaller banks was necessary to better enable the country to weather economic turbulence. The current minimum requirement is 10.5%.

For high-quality Tier 1 deposits, the minimum ratio for the top four banks almost doubles to 16%, while smaller banks will be required to hold 14%.

The level of bank capital adopted by New Zealand is more stringent than other countries, but not extreme, and was necessary to protect the country against a one in 200 year big bank failure, the RBNZ said.

In Australia the Tier 1 minimum capital requirement for the big four banks — Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Westpac Banking Corp. — is 10.5%.

ANZ Chief Executive Shayne Elliott said “while the increased capital requirements remain significant … we are confident we can meet the higher requirements without the need to raise additional capital.”

NAB said in a statement that the “ultimate impact” would be dependent on various factors, including “potential mitigating actions undertaken.”

CBA said it will consider ways “to minimize the financial impact from the requirements while supporting our customers and growth in the NZ economy.”

The RBNZ provided some further relief by announcing that changes will be phased in over a seven-year period from July 2020, rather than the five years originally proposed. Banks will also be allowed to raise capital by issuing cheaper redeemable preference shares, rather than be restricted to common equity.

However, Moody’s Investor Services vice-president Daniel Yu said the changes would weigh on the banks’ return on equity ratios.

“As such, we expect the new measures will prompt higher lending rates in efforts to boost profitability, as well as constrain growth in more capital-intensive lending,” he said.

DIVIDEND IMPLICATIONS
Jefferies analyst Brian Johnson said the new regime was marginally better than anticipated but will “crimp the banks ability to stream capital from New Zealand back to Australia, especially for ANZ.”

“The big implication from these changes will be on the sector’s dividend payout ratios.”

The big four Australian banks earn a sizeable share of their profits from across the Tasman Sea. ANZ, the biggest of the quartet, garnered 22% of its group profit from New Zealand in 2019, according to its annual report.

Australian lenders are already under pressure back home amid the fallout of a government-backed inquiry last year that found widespread misconduct in the financial sector.

Westpac, NAB and ANZ all cut their final dividends or reduced their franking credits this financial year to prepare for the RBNZ’s changes and a move by Australian regulators to reduce the amount of Tier 1 capital banks can hold against their international operations. CBA will announce its interim dividend in February.

UBS analyst Jonathan Mott said “we expect the earnings downgrade cycle to continue unless the global economy rebounds sharply and yield curves steepen.”

The New Zealand dollar rose 0.3%, as the long lead time was seen as less of a drag on the economy than had been expected, which in turn reduced expectations of deeper monetary easing to offset any negative effects.

The RBNZ said in its statement that the changes could lead to around a 20-basis-point increase in average lending rates, once fully implemented. — Reuters

Indonesia aims to replace some top civil service jobs with AI in 2020

JAKARTA — Indonesian President Joko Widodo on Thursday ordered government agencies to remove two ranks of public servants in 2020 and replace their roles with artificial intelligence, in a bid to cut red tape hampering investment.

Widodo made the remarks in a room full of leaders of big companies as he laid out a second-term agenda aimed at changing the structure of Southeast Asia’s largest economy by reducing its reliance on natural resources.

The president, whose new five-year term began last month after winning an election in April, said Indonesia should transition to higher-end manufacturing, such as electric vehicles and use raw materials like coal and bauxite in such industries, not just exports.

Such transformation would require foreign investment and Widodo said he would improve the business climate by fixing dozens of overlapping rules and cutting red tape.

To reduce bureaucracy, Widodo said the current top four tiers in government agencies would be flattened to two next year.

“I have ordered my minister (of administrative and bureaucratic reform) to replace them with AI. Our bureaucracy will be faster with AI,” he said, referring to artificial intelligence. However, he added this plan would need parliamentary approval.

Widodo did not provide further details, including any guidance on which specific roles would be removed or how the technology would be used. — Reuters

Your Weekend Guide (December 6, 2019)

Ballet Philippines’ Cinderella

BALLET Philippines presents Cinderella, choreographed by National Artist for Dance Alice Reyes, has performances on Fridays to Sundays until Dec. 15 at the Main Theater of the Cultural Center of the Philippines. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Tanghalang Pilipino’s Lam-ang

TANGHALANG Pilipino presents Lam-ang, an ethno-epic musical that re-imagines the Ilokano epic “Biag ni Lam-ang,” with performances until Dec. 15 at the Little Theater of the Cultural Center of the Philippines. Directed by Fitz Edward Bitana and with musical direction by TJ Ramos, it stars JC Santos as the epic hero Lam-ang. Check TicketWorld for the performance schedules and for tickets (www.ticketworld.com.ph, 891-9999).

RP10: Richard Poon The Repeat

RP10 featuring Richard Poon returns to the Newport Performing Arts Theater at Resorts World Manila on Dec. 6, 8 p.m. Mr. Poon will be performing contemporary and OPM hits with his 21-piece big-band orchestra. Special guests include Sitti and Ice Seguerra. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Jose Mari Chan at Robinsons Magnolia

JOSE MARIE CHAN, the man behind the Christmas perenial “Christmas in Our Hearts,” will be performing at Robinsons Magnolia on Dec. 15, 6 p.m. Get exclusive access to this show by presenting a single/accumulated receipt purchase from Dec. 7 to 15 worth P2,000 from any store in the mall, or P3,000 from Robinsons Supermarket or Robinsons Appliances in Robinsons Magnolia (receipts from service outlets such as utilities, telecommunications, travel, courier, real estate, insurance, banks, schools, medical/dental clinics are disqualified). One ticket is good for one person only. This is valid on a first come, first serve basis. For complete mechanics, follow Robinsons Magnolia on Facebook; @RobinsonsMallsOfficial on Instagram; and @RobinsonsMalls on Twitter.

A Night At The Theater

SINGER/SONGWRITER Ely Buendia will once again reveal another side of himself in A Night At The Theater on Dec. 8, 8 p.m., at the Newport Performing Arts Theater in Resorts World Manila. For the concert, he will be joined by some of the cast members from the musical Ang Huling El Bimbo — Gian Magdangal, Oj Mariano, Jon Santos, Carla Guevara-Laforteza, Reb Atadero, Boo Gabunada, Topper Fabregas, and Tanya Manalang. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Re:View 2019 at the BenCab Museum

THE BenCab Museum caps the year with RE:VIEW 2019, a group exhibit featuring 45 artists. The exhibit opens on Dec. 7 and runs until Feb. 2, 2020. The BenCab Museum is located at Km. 6 Asin Rd, Tuba, Metro Baguio. For information, visit http://www.bencabmuseum.org/. The museum is open on Tuesdays to Sundays from 9 a.m. to 6 p.m. It is closed on Mondays, Christmas Day, and New Year’s Day.

Pasko sa Palacio

PALACIO de Memoria presents Pasko sa Palacio: A Heritage Christmas Celebration on Dec. 7, 6 p.m. The program includes performances by the Kulturang Kayumanggi Dance Troupe, Kenn Ocampo, Gracia Longcop, Sharla Cerilles, and Jurgen Unterberg. The festivities begin at 6 p.m., with a rondalla, songs and dances, highlighted with a buffet, local food fair, and drinks. Tickets are at P,1000. Proceeds will go to Kulturang Kayumanggi. Palacio de Memoria is located at Roxas Blvd., Los Tamaraos Village, 95 Bayview Drive, Parañaque City. Tickets are available at (www.ticketworld.com.ph, 891-9999) or through 8253-3294.

The Quest for the Adarna

REPERTORY Philippines’s Theater for Young Audiences presents a musical retelling of the Philippine folk tale “Ibong Adarna.” The Quest for the Adarna has performances until Jan. 26 at Onstage Theater, Greenbelt 1, in Makati. In the kingdom of Berbania, the king falls mysteriously ill and can only be healed by the song of the mythical bird, Adarna, which can be found in its mountain home. His three sons take turns attempting the dangerous journey to help their father. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Acoustic Weekends at The Rise

NORTH MAKATI (NOMA) along Malugay St., Makati has a NOMA’s new hangout, Assembly Grounds at The Rise, which is giving promising musicians the spotlight on weekends. Singer-songwriter Eloisa Jayloni kicks off the weekend performances on Dec. 6; Tek Cortez, a human resources manager and street performer will be on Dec. 7; and singer and ukelele player Aubrey Cayanan plays on Dec. 13. For inquiries, call 8-298-8000 loc. 4 or visit www.assemblygroundsattherise.com.

Globe’s Fan Force Weekend

STAR WARS fans can join Globe’s Fan Force Weekend on Dec. 7 and 8 at the Bonifacio High Street Amphitheater at the Bonifacio Global City, Taguig. This celebrates the latest and last chapter of one of the most iconic sagas, Star Wars: The Rise of the Skywalker, which is set to hit movie screens worldwide on Dec. 20. Different activities set this coming weekend such as games and promos. Children can join the Jedi Academy Training and learn to wield lightsabers. Fans can have photo sessions with iconic Star Wars characters. An orchestra is playing all-time favorite Star Wars songs and accompanied by a one-of-a-kind light show. Globe customers can also share their Globe Rewards to benefit Virtualahan. For details visit the following links: www.globe.com.ph/starwars and https://www.facebook.com/events/2456253267926359/.

ICTSI unit allocates $100M for Congo terminal expansion

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) on Thursday said it allotted over $100 million for the expansion of its container terminal in the Democratic Republic of the Congo (DRC).

The listed company said in a statement on Thursday it “earmarked more than $100 million” for the second phase expansion of its Congolese subsidiary, Matadi Gateway Terminal (MGT), which is expected to start by 2020.

“The expansion of MGT is aligned with actual and projected container growth rates for the DRC, and corresponds with cargo owner and shipping line requirements for the medium term,” Hans Ole Madsen, ICTSI senior vice-president, was quoted as saying in the statement.

As part of Phase 2, MGT will expand the quay to over 500 meters from 375 meters, and double the yard area to 10.5 hectares. Once completed, the terminal will be able to service two West Africa Maximum (WAFMAX) class vessels.

“The expansion grants the terminal substantial flexibility to optimize container capacity, stacking, and clearance/drop-off arrangements,” ICTSI said.

A third Kone mobile harbor crane, which can turn a 2,500-twenty-foot-equivalent-unit capacity vessel in under 12 hours, will be installed at the MGT.

“In the pipeline are DR Congo’s first pair of ship-to-shore (STS) gantry cranes, expected to optimize vessel turnaround times; new landside yard handling equipment; and the latest IT systems for optimized terminal operations,” ICTSI added.

ICTSI noted that Matadi offers the “lowest” inland transport cost as it is the closest port to Congo’s capital city, the Kinshasa. The company said it is currently in discussions with relevant authorities in Congo to enhance the rail service between Matadi and Kinshasa.

“With the support from the DRC government, a two-step plan is underway to dredge the Congo River to a deeper draft of 12.5 meters, which will allow access to Panamax-class vessels,” ICTSI added.

The third phase of the expansion project will enable MGT to service larger WAFMAX vessels.

“The market is seeing positive growth albeit off a relatively low base in terms of total demand. Studies suggest that DRC will achieve emerging market country status within the next 10 years and as such, we are very confident that this nearly $100-million expansion plan anticipates the market’s requirements over this period and will deliver unrivaled efficiencies,” Mr. Madsen said.

The MGT is a joint venture of ICTSI and La Societe De Gestion Immobiliere Lengo. — Arjay L. Balinbin

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