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SLI to conduct follow-on offering

STA. LUCIA Land, Inc. (SLI) is looking to raise up to P8.40 billion from a follow-on offering within the year to finance its capital expenditures.

In a preliminary prospectus filed with the Securities and Exchange Commission (SEC), the listed property developer said it will offer up to three billion common shares to the public, consisting of 2.7 billion primary offer shares and 300 million for the over-allotment option.

At a price of P2.26 to P2.80 each, SLI could raise anywhere from P6.78 billion to P8.40 billion.

SLI expects to net P8.117 billion from the offering, should it completely exercise the over-allotment option and secure the maximum price for each share. About P6.78 billion of the proceeds will go to capital expenditures for new and ongoing projects.

The company will use P820 million for landbanking purposes, while the remaining P517.79 million will go to general corporate purposes. The funds are expected to be disbursed from the fourth quarter of 2019 until 2020.

Most of SLI’s upcoming projects are in Central Visayas, Western Visayas, and the Calabarzon Region. It also has developments in the Davao Region, Soccsksargen, Mimaropa, the Cordillera Administrative Region, and Metro Manila.

The developer’s prospective land acquisitions are also located in the provinces, most of which are in Calabarzon.

SLI tapped China Bank Capital Corp. as the offering’s issue manager, underwriter, and bookrunner.

The company’s public float will reach 26.79% upon listing, with its market cap to rise up to P31.35 billion.

Depending on regulatory approvals, SLI looks to finalize the issue price by Nov. 12. The offer is set to run from Nov. 18 to 29, in time for listing on Dec. 9.

SLI’s registration will need approval from the SEC and Philippine Stock Exchange.

The company earlier said it will spend P20 billion in capex over the next three years to expand its residential and commercial properties in the country.

At the same time, it will launch a combination of 28 residential and commercial projects, in addition to five condominium and hotel projects that could potentially generate P20 billion in reservation sales.

SLI’s net income attributable to the parent doubled to P883.74 million in the first half of 2019, against P432.61 million in the same period a year ago. Gross revenues also grew 70% to P3.496 billion.

Shares in SLI fell 2.05% or five centavos to close at P2.39 each on Thursday. — Arra B. Francia

More women get to throw tomatoes as movie-critic website diversifies

SHANNON MCGREW admits she’s had it a little easier than other women establishing her chops as an online film critic.

Unlike some of her contemporaries, she said, “I have not received death threats.” But during her nearly five years as a critic of horror movies at her own website, Nightmarish Conjurings, McGrew has battled detractors who belittled her work. “I think sometimes we are not considered as serious as our male counterparts.”

That’s starting to change, with help from Rotten Tomatoes, the influential website site known for tagging badly reviewed films with a splattered green tomato. McGrew is one of 600 critics — writers not already working with a major media outlet — who were approved to post reviews on the site over the past year as part of a diversity initiative. More than half are women, the company said Wednesday.

“It was a huge moment for me,” McGrew said in an interview. After four years of writing reviews and waiting a year for her application to be recognized, the Los Angeles-based reviewer and interior designer will get greater access to screenings and industry events for new movies.

With the growing reach of social media, online reviews and aggregator sites like Rotten Tomatoes can make or break a movie. Consumers can quickly look up a rating before deciding whether to see a new film. The site has become so influential that some producers have railed against the company — even though it’s owned by two Hollywood studios.

Up to now, though, the contributors have been largely white and male. This is particularly true of Rotten Tomatoes’ “Top Critics,” reviewers employed by mainstream publications. While some studios like Comcast Corp.’s Universal Pictures have made commitments to diversifying their directors, casts and crews, the ranks of movie reviewers have barely shifted.

In the horror genre, “Women don’t have much of a voice,” McGrew said. “There has to be opportunities to allow new voices to come in.”

Rotten Tomatoes said that of the 600 new critics, freelancers account for 60% and 10% publish via YouTube or podcasts. Of the 100 or so publications that have Top Critics status, only 30% of their contributors are women. In all, the company has about 1,100 unaffiliated individual reviewers, with about 42% women. The website is also working to increase the ethnic diversity of its lineup, but hasn’t surveyed its ranks on that basis. (Of course, if publications and news organizations diversify their ranks as well, that will help the effort.)

Nearly all the newly added reviewers surveyed by Rotten Tomatoes said that becoming a so-called Tomatometer-approved critic has helped “amplify and legitimize” their voice; 73% saw an increase in web traffic, views and social-media following.

But gender and ethnicity aren’t the only hurdles reviewers have to clear. Some are financial. The cost of attending high-profile film festivals can be prohibitive for independent critics. They also have to gain access to the free screenings that major publications enjoy.

To help these newest critics, Rotten Tomatoes’ parent company — the ticketing website Fandango — is committing another $100,000 next year to support diversity at festivals and industry inclusion initiatives. Fandango itself is owned by AT&T Inc.’s Warner Media and Comcast Corp.’s NBCUniversal.

With its growing influence among film fans, Rotten Tomatoes has taken other steps in recent years to make the site fairer. It changed its audience ratings to stop so-called review bombing, in which films with more women and minorities were flooded with negative commentary. Captain Marvel and Black Panther were among the movies targeted. Now people trying to submit an audience review have to prove they’ve seen it.

As a newly recognized Rotten Tomatoes contributor, Hanna Flint will head to the Toronto Film Festival next month knowing her reviews will automatically appear on the site for the first time in her eight years covering the entertainment industry — and be included in the site’s all-important Tomatometer.

Back in May, the London-based writer of Tunisian descent found herself scrolling through Rotten Tomatoes to find a review of Walt Disney Co.’s live-action Aladdin from a critic from South Asia, the Middle East, or North Africa. She put a call out on Twitter, but found very few, and ultimately raised this lack of diversity with the website.

“As much as film is diversifying, film criticism has to respond to that and reflect that,” Flint said. “As a reader of reviews, I look for someone who is like-minded, as a woman and a woman of color. It’s nice to be that person for other people, but I want other people to be that person for me.” — Bloomberg

ABS-CBN starts rollout of TVplus Go units nationwide

ABS-CBN Corp. is now starting the nationwide rollout of the mobile version of TVplus boxes.

In a statement yesterday, the Lopez-led media giant said ABS-CBN TVplus Go units are now available in all branches of SM Hypermarket, SM Savemore, SM Department Store Gadget Hub, SM Business Center, SM Appliance, Robinson’s Appliance, Abensons, Villman, Silicon Valley, DIY, Handyman, and Puregold nationwide.

The product is sold at P799 per unit and functions like a dongle that may be attached to an Android phone to stream ABS-CBN content.

In a separate statement, the company said it signed on Wednesday a regional effort to codify standard practices in on-demand streaming platforms for its iWant streaming product.

ABS-CBN took part in the ASEAN Subscription Video-on-Demand Industry Content Code, the first Filipino video streaming service to do so, joining Netflix, HOOQ, iflix, tonton, Astro, dimsum and DOONEE.

“We are honored and thrilled to unite with other distinguished streaming platforms in the region in this pledge to create and produce socially responsible content, which has always been the top priority of iWant…,” Elaine Uy-Casipit, head of iWant, said in the statement.

The ASEAN Content Code is a framework that compels signees to “uphold the interests of their users by providing content that does not infringe copyright and does not promote pornography, violence, terrorism, and hate crimes.”

ABS-CBN launched iWant in November and has so far tallied 3.8 million app downloads and 13 million subscribers. — Denise A. Valdez

Filipinos starting to go cashless — Visa

By Mark T. Amoguis, Senior Researcher

IN A COUNTRY where cash still remains king, majority of Filipinos are starting to embrace cashless payments, Visa, Inc. said in a report.

Almost eight out of 10 Filipinos (75%) plan on using their cards for payments instead of cash, according to data from the 2018 Visa Consumer Payment Attitudes Study released recently.

The study noted that two out of three respondents in the country have tried going cashless.

Due primarily to convenience, the study added that close to 60% of Filipino respondents have gone cashless for at least a few days.

Meanwhile, 82% of Filipinos surveyed were aware of contactless card payments, up from 71% previously.

Despite these developments, seven in 10 Filipinos still prefer to use cash, according to the study.

Between 2016 and 2018, the number of Filipinos using contactless payments remained unchanged at 27%.

“Visa’s data also shows a similar trend where we continue to see double-digit growth in terms of spend and transactions made by Filipino cardholders,” Visa Country Manager for the Philippines and Guam Dan Wolbert said in a statement.

“There is still a lot of opportunity for cash displacement in the Philippines and we continue to work on a few priorities in the Philippines such as grow digital payments usage in the country and expand merchant acceptance footprint for digital payments,” Mr. Wolbert said.

Card spend of Filipinos increased 19% year on year, while transaction count went up 21% annually, Mr. Wolbert said, citing VisaNet data as of the quarter ended June this year.

He attributed this transaction growth to the rise of e-commerce for digital purchases such as subscription programs, ride-hailing services, and travel platforms.

“We have seen strong growth in contactless payments in the Philippines, especially after partnerships with key merchants such as SM and Robinsons who have implemented contactless payments acceptance across their stores in the Philippines,” Mr. Wolbert said.

SM and its partner boutiques started accepting Visa contactless payment in 2018, while the Robinsons Retail group started offering this payment scheme in its department store chains and supermarkets earlier this month.

“We will continue to engage more merchants and banks to promote the benefits of contactless payments,” he added.

Nearly eight out of 10 Filipinos (78%) prefer shopping at places that offer cashless payments, increasing from 58% in 2017, the study showed.

Visa noted that Filipinos are keen to use e-payments for transportation.

According to the study, almost nine out of 10 Filipinos are generally supportive of e-payments for transportation which includes jeepneys, buses, trains, taxis, and private car hires.

The study also noted the growing confidence in security for cashless payments.

Almost eight in 10 Filipinos or 74% agree that cashless payment methods are safer than cash, up from 42% in the 2017 edition of the study, while 75% (from 47% previously) of respondents plan to use cashless payment methods more often and move away from cash.

The latest Visa Consumer Payment Attitudes Survey was conducted via online questionnaire in July 2018 and had 500 Filipino respondents spread across the country whose monthly incomes range from P12,000 to P84,000.

The primary aim of the study is to understand the behaviors of digital consumers and their interest in using digital payments and new technology.

The Bangko Sentral ng Pilipinas targets to increase the share of digital payments to 20% by next year of total transactions from a measly 1% recorded in 2013.

Under the National Retail Payment System, the central bank plans to shift cash-heavy transactions to digital avenues. In implementing this, BSP launched two clearing houses: PESONet for batch payments in 2017 and InstaPay for small value payments in 2018.

Pulp fanfic

Once Upon a Time in Hollywood
Directed by Quentin Tarantino

(WARNING — Plot twists and story details explicitly discussed.)

FINALLY Quentin Tarantino’s mildly racist, markedly misogynistic, mostly masturbatory Once Upon a Time in Hollywood has hit Filipino screens and if all indications prove correct it will be a major hit. Maybe not as big a hit as Marvel’s Avengers: Endgame (which I didn’t like much either) but I do love the way folks have spun the popularity of Tarantino’s wankfest: as one of the rare non-sequel non-franchise pictures to open to good box office.

Which is funny because, 1.) the spin assumes box office truly madly deeply matters, and 2.) assumes (correctly in my book) that our standards have fallen so sharply that when something isn’t a sequel or a franchise it must be “The Second Coming.” Or in this case “The Second Self-Coming.”

You have to admit it’s handsomely done, down to the movie billboards, the ads, the cars, the road signs, the very plates used to serve food in the legendary Musso and Frank Grill. Several times the camera runs alongside Rick Dalton’s (Leonardo DiCaprio) 1966 Coupe DeVille or Cliff Booth’s (Brad Pitt) Karmann Ghia or Roman Polanski and Sharon Tate’s (Rafal Zawierucha and Margot Robie) MG TD as they careen down Hollywood Boulevard, Westwood Boulevard, the Marina Del Rey freeway. We see The Vine Theater playing Romeo and Juliet (opened a year before), the Vogue playing The Night They Raided Minsky’s. It isn’t so much a measure of Tarantino’s art as it is a measure of the size of the budget he is able to command (an estimated $96 million) and his willingness to pour it all on the big screen; it isn’t so much a showcase of acting fireworks as it is of Tarantino’s ability to attract the creamiest talents in Hollywood that Al Pacino, Margot Robbie, Leonardo DiCaprio, Brad Pitt, Bruce Dern, Damian Lewis, Kurt Russell, Michael Madsen, Zoe Bell among many others are all happy to appear in his production, some not for the first time. Tarantino in effect is a gigantic movie and LA geek and wants to parade to us his collection — lovingly lit with a burnished glow by Robert Richardson — all immortalized on the big screen.

Part of that collection includes attitudes contemporaneous to the time, I suppose: Rick weeping at the sorry state of his career, his stuntman and Man Friday Cliff looking at the car attendants muttering “Don’t cry in front of the Mexicans;” Cliff later having a face off with Bruce Lee (Mike Moh), their one-on-one encounter ending in a “draw” (Bruce knocks Cliff down, Cliff slams Bruce against the side of a car).

Lots of ink pro and con splattered all over webpages about the scene, and whether Lee is an arrogant asshole or not, but arguably the most telling is a tale told by the real stuntman who grappled with Bruce Lee, two-time national judo champion Gene LeBell, who had been deliberately called in because Lee was said to be manhandling the stuntmen (he reportedly insisted on doing the sequences for real while the stuntmen insisted fake fighting is just as effective on-camera).

The story’s point? Lee realized that his jeet kune do style of fighting had a weakness — close quarters wrestling — and asked LeBell to teach him. LeBell was a ringer and the fight was a setup; Lee was humiliated — but learned from the experience.

Tarantino apparently wasn’t keen on introducing any such nuances to his fable; he was mostly interested in shits and giggles, and maybe pissing on the legend of his supposed idol.

As for the defense “it’s all in Cliff’s head!” — Oh please. If Tarantino meant to suggest that Cliff isn’t as badass as he’s supposed to be in the flashback then somewhere in the movie this suggestion ought to play a role in the plot; if he is as badass as he’s supposed to be in the flashback (turns out he is) then it’s meant to represent an accurate memory reinforcing the director’s point. Tarantino apologists be reachin’ ’yo.

(No gags about African-Americans, though; mustn’t antagonize the African-Americans — just made a movie a few years back [Django Unchained] that largely won over that demographic [years after alienating them — or at least the more discerning figures — with Pulp Fiction and Jackie Brown].)

Then there’s the misogyny — the running gag that Cliff killed his wife, again played for shits and giggles (try watching it with a theater audience — the scene kills em’); the endless objectifying of Sharon Tate (long lingering shots over Margot Robbie’s body as she lies in bed, with a focus of course on the feet).

Even altering Sharon’s future — something he’s tried before in Inglourious Basterds (not a fan) and the aforementioned Django — somehow diminishes her. Part of the poignancy of her story was that it was a bright little flame abruptly cruelly snuffed out; take away that ending (the way Disney altered the endings to The Little Mermaid or The Hunchback of Notre Dame) and much of that poignancy is taken away.

Now misogyny and racism is often the darker underside of Tarantino’s true genre: not the western or the crime thriller or the revenge flick but the pulp movie. And I get it — enjoy my share of pulp, some of them Filipino (James Batman and Babaing Putik [Woman of Mud] anyone?), and a certain myopia to political correctness comes with the territory; otherwise you’re never going to enjoy any of the pictures.

I also get what Tarantino’s trying to do: a loving tribute to an age of studio-based filmmaking past, warts and all, done on his own terms in his own style, with a bit of mythmaking tossed in to keep the adoring Tarantino metacritics happy.

As for that mythmaking: Tex Watson, Susan Atkins, and Patricia Krenwinkel (Austin Butler, Mikey Madison, Madison Beaty respectively) enter Rick’s (instead of Sharon Tate’s) house; Cliff stands in the middle of the room drugged out of his mind on acid. Cliff sics his dog on Tex, smashes Susan’s face with a can of dog food; Tex charges with a knife which Cliff turns and buries in Tex’s thigh; he then stomps Tex’s head to a flattened pulp against the doorway threshold. Patricia tackles Cliff and manages to sink a blade (looks like a boning knife) in one buttock. Cliff gingerly touches the handle, looks at Patricia with dreamy smile, grabs her head, and proceeds to smash her face against a hanging rotary phone three times (phone cradle perfectly positioned to hook into her eye sockets), smash her face against a wall portrait twice (shattering the glass), smash her face three times against the edge of a marble fireplace and — for good measure — lower her to her knees to carefully smash her face against the edge of a coffee table.

Susan Atkins gets off relatively unscathed — mangled teeth and nose and all — till she stumbles into a pool waving a gun. Rick (who has been floating in the pool totally unaware) climbs out, walks into his garden shed, takes out the M2 flamethrower he once practiced on for a battle scene in a World War 2 quickie, and torches her to a sodden crisp.

Am I being too explicit? No more than the movie was. Have I seen worse pizzamaking? Well I have — Takashi Miike, Lucio Fulci, and early Peter Jackson (back when he was fun) come to mind, and you’d be a little surprised how gory Gerry De Leon and Eddie Romero can be in Brides of Blood and Mad Doctor of Blood Island.

Gore doesn’t bother me but it’s an unwritten rule in pulp filmmaking that we both (the filmmaker and the audience) know this is all unclean fun — that tits and ass and a bit of ultraviolence are bad for us but we see it because we want to see it, no other excuse (Well there’s the battle between good and evil but — fig leaf anyone?). Difference with them and Tarantino is that he moves heaven and earth to make the beatings palatable to us; I mean — these are the Manson killers! That was Sharon Tate, lovely bare feet and all, and Cliff Booth, war hero (though he did kill his wife)! The “God-damned fucking hippies” deserve the crotch ripping dog, the stomp to the head, the phone cradle hooking into the eye sockets, the lingering caress of burning gasoline! All for shits and giggles!

Yeah, I listened to the audience too, the sense that the hooting and stomping isn’t just coming from the hunched raincoat crowd (and I include myself) but from others who normally don’t enjoy such fare: the arthouse elite, the otherwise bleeding-heart liberal, the average middlebrow, all given license to applaud by everything that came before. That — and Tarantino’s hypocrisy — turned my stomach more than what I was seeing onscreen.

(Why, by the way, does Tex get the relatively conventional death by dog attack and foot stomp while the girls get phone cradle to the eye sockets and flamethrower? And why do I feel it warms Tarantino’s heart for people to have these kinds of discussions?).

I get the loving tribute but I’m not sure Old Hollywood would have dispatched the Manson killers quite that way — okay, Cliff was on drugs (there’s some question whether or not acid is effective when smoked, that maybe what he ingested was actually PCP, that it’s unlikely anyone can be that balanced and coordinated when high) but the mildly outré violence in my book is a betrayal of the best of those Old Hollywood values.

Give me instead a tribute from a real adult — Orson Welles, for one, whose Other Side of the Wind is a bittersweet exercise in muckraking and mourning of ages past, or Mario O’Hara, whose Babae sa Bubungang Lata (Woman on a Tin Roof) also focuses on the marginalized in the film industry — the has-been actors and stunt men — but in a poorhouse style ($60,000 shot in two weeks, as opposed to Tarantino’s near hundred million) far more appropriate to the subject matter.

Not saying I didn’t enjoy Tarantino’s latest, warts and all. It had its moments, especially when Rick has his umpteenth nervous breakdown, or Cliff sends his Ghia hurtling down the freeway, or Margot Robbie or Margaret Qualley flash their slightly soiled insteps. I came, I paid, I sat through the picture. For — y’know — shits and giggles.

PSE plans to buy back P532 million worth of shares from brokers

THE Philippine Stock Exchange, Inc. (PSE) plans to buy back P532.01 million worth of common shares from broker shareholders until September, in a bid to reduce its broker ownership to less than 20%.

In a disclosure Thursday, the bourse operator said its board of directors has approved a compliance plan that involves a share buyback program as well as the creation of 3.5 million preferred shares.

Under the buyback program, the PSE will buy common shares held by trading participants until Sept. 30, unless otherwise extended by the board. The shares will be booked as treasury shares.

“The buyback program shall be implemented in an orderly manner and should not adversely affect the company’s and its subsidiaries’ prospective and existing projects,” the PSE said.

Meanwhile, the PSE also amended its articles of incorporation to include the creation of the 3.5 million preferred shares with a par value of P1 each. The exchange will ask consent from its shareholders for the amendment, which will then be submitted to the Securities and Exchange Commission (SEC) for approval.

The preferred shares may only be issued to brokers, in line with the group’s ownership dilution in the bourse. The securities will be non-voting, be cumulative in payment of dividends, non-participating in any further dividends, non-convertible, and can be redeemed at the board’s discretion on its third anniversary date.

Trading of PSE shares were suspended for an hour on Thursday to help investors digest the material information.

The PSE said last March that its broker ownership stood at 26.44%, higher than the 20% industry limit set by the Securities Regulation Code (SRC).

Item C of Section 33.2 of the SRC states that “no person may beneficially own or control, directly or indirectly, more than five percent (5%) of the voting rights of the Exchange and no industry or business group may beneficially own or control, directly or indirectly, more than twenty percent (20%) of the voting rights of the Exchange.”

The bourse has been looking for ways to comply with this rule. In January, it implemented a real-time broker ownership monitoring mechanism through the trading system. This automatically prevented trading participants from placing a buy order for PSE shares should their accounts exceed the limit.

The PSE previously tried to meet the single industry limit to get the SEC’s nod for its proposed acquisition of the Philippine Dealing System Holdings Corp. The deal however is unlikely to happen due to Land Bank of the Philippines’ interest in the latter’s acquisition.

Shares in the PSE fell 0.53% or P1 to close at P187 each on Thursday. — Arra B. Francia

BoJ policy maker sees danger from more easing, in signal of wider rift

KUMAMOTO, Japan — A Bank of Japan (BoJ) board member warned of potential dangers if the central bank’s already massive stimulus is ramped up, a view suggesting there is no consensus on how quickly it should ease policy again to head off the risk of recession.

Hitoshi Suzuki, a former commercial banker turned BoJ policy maker, said on Thursday borrowing costs have yet to reach levels considered as the “reversal rate” — or the level at which the demerits of low interest rates exceed the benefits.

But Suzuki said rates may already be approaching such a level, as years of ultra-low rates strain financial institutions.

His comments signal that he would cast a dissenting vote if Governor Haruhiko Kuroda were to propose deepening negative rates.

“I don’t see the need to ease monetary policy further now,” Suzuki told reporters after meeting business leaders in Kumamoto, southern Japan.

“It’s hard to predict when Japan will see borrowing costs reach a reversal rate. But it might not be too distant in the future,” he added.

Suzuki’s remarks underscore a rift within the nine-member board that could make it hard for Kuroda to meet his pledge to ease “without hesitation” to underpin the economy’s recovery.

In a speech, Suzuki said further declines in rates could do more harm than good to the economy as it would prompt financial institutions to charge a fee on deposits.

“If bank deposit rates effectively turn negative, it could hurt the economy by cooling consumer sentiment,” Suzuki said.

“Once the financial system destabilizes, it will become very difficult to achieve price stability,” he said, stressing that the BoJ needed to pay more attention to the health of Japan’s banking system in guiding monetary policy.

ROOM FOR PREEMPTIVE STEPS?
Markets expect the US Federal Reserve and European Central Bank to loosen policy next month to counter headwinds from a bitter US-China trade war.

That is piling pressure on the BoJ to follow in their footsteps to prevent the yen from spiking against other currencies and hurting Japan’s export-reliant economy.

While some like Suzuki fret about the rising cost of prolonged easing, other board members see room to act preemptively to prevent the economy from losing momentum to achieve the BoJ’s elusive 2% target.

Suzuki said he had doubts over the feasibility of deepening negative rates, which is seen by markets as among options if the BoJ were to ease as early as next month.

The BoJ is in a bind. Years of aggressive money printing have crushed long-term interest rates and hurt profits of financial institutions by narrowing the margin they earn from borrowing cheap funds and lending at a higher rate.

It has also left the BoJ with little ammunition to fight another recession.

Under a policy dubbed yield curve control (YCC), the BoJ guides short-term rates at -0.1% and the 10-year government bond yield around 0% via heavy asset buying.

Cutting rates would undermine the purpose of YCC, which was intended not just to cap bond yields but to prevent them from falling too much and hurting commercial banks.

Add to headaches for BoJ policy makers, global bond yield declines briefly pushed Japan’s 10-year yield to -0.285% on Thursday. That is the lowest since July 2016 and well below the -0.2% level that market players perceive as the BoJ’s effective line in the sand.

Suzuki said recent falls in Japanese bond yields are driven mostly by market expectations yields will decline further, which is steering investors to seek short-term gains by buying bonds now in hope of selling them at a higher price later.

Once such expectations shift, yields will normalize, Suzuki said, adding “We don’t need to be too rigid about the range. At times, yield moves might be somewhat extreme.” — Reuters

DoLE on track to hit business inspection target in 2019

THE Department of Labor and Employment (DoLE) said it inspected 34,000 establishments during the first half, ahead of the pace to meet its 2019 inspection target of 55,000.

Speaking to BusinessWorld Tuesday, DoLE Assistant Secretary Benjo Santos M. Benavidez said that DoLE conducted more inspections than expected.

“In the natural and normal course of inspection of companies…Nakadami na naming inspection (we have inspected a lot). We inspected 34,000 establishments as of June,” he said.

In 2018, DoLE inspected 134,263 businesses with 500 labor law compliance officers (LLCOs). This year, it deployed an additional 234 LLCOs but has decided to focus their efforts on known problem areas like hospitals and bus companies.

The Department of Budget and Management (DBM) and the Department of Finance (DoF) have pledged their support for DoLE’s plans to hire 5,000 more LLCOs.

He estimated the number of bus companies at about 400 and major private hospitals about 200.

Hospitals have come to the fore because of numerous complaints about nurses’ working hours and pay. In the bus industry, DoLE is currently enforcing a 2018 Supreme Court ruling requiring regular salaries for drivers and conductors and the prohibition of the “boundary” wage system. — Gillian M. Cortez

What to see this week

5 films to see on the week of August 30 — September 5, 2019

Once Upon a Time in Hollywood

SET in 1969 Los Angeles, fading TV actor Rick Dalton and his stunt double Cliff Booth strive to be famous and successful during the tail-end of Hollywood’s Golden Age. Directed by Quentin Tarantino, it stars Leonardo DiCaprio, Brad Pitt, Margot Robbie, Luke Perry, Dakota Fanning, and Al Pacino. Empire’s Ian Freer writes, “At every stage, the film-mak-ing is on point. Robert Richard-son’s stun-ning cin-e-matog-ra-phy pops but never feels overly man-nered, Ar-i-anne Phillips’ cos-tume de-sign is too styl-ish for words, and Harry Co-hen’s dense, bravura sound de-sign in-ter-weaves mu-sic, ra-dio chat, ad-verts and TV chat-ter to spell-bind-ing ef-fect. It’s a film that courses with a love of moviemak-ing and Hol-ly-wood lore and might be Taran-tino’s most per-sonal film to date…”

MTRCB Rating: R-16

Ready or Not

A BRIDE’S wedding night turns weird when her in-laws invite her to play a terrifying game and she ends up fighting for her survival. Directed by Matt Bettinelli-Olpin and Tyler Gillett, it stars Samara Weaving, Adam Brody, and Mark O’Brien. Rolling Stone’s Peter Travers writes, “It all goes from bloody hilarious to just bloody. What’s unexpected is the subversive wit that that turns Ready or Not into a satiric sneak attack on the institution of marriage.”

MTRCB Rating: R-16

Upin and Ipin: The Lone Gibbon Kris

FIVE-YEAR-OLD twin brothers Upin and Ipin, along with their friends, discover a mystical kris which leads them to the fantastical kingdom of Inderaloka in this animated feature. While finding their way home, they end up having to save the kingdom. Directed by Adam Bin Amiruddin and Syed Nurfaiz Khalid bin Syed Ibrahim, the film features the voice of Asyiela Putri Bt Azhar, and Mohd Amir Asyraf Bin Mohd Noor Rashid.

MTRCB Rating: G

Above the Shadows

A DECADE after Holly unexplainably became invisible to everyone around her, she meets retired MMA fighter Shayne who is the only one who can see her. With Shayne’s help, Holly works to regain her foothold in the world. Directed by Claudia Myers, the film stars Megan Fox, Olivia Thirlby, and Jim Gaffigan. Variety’s Courtney Howard writes, “This magical-realist fairy tale, about a young woman feeling so isolated and insignificant after a tragic loss that she’s literally invisible to everyone except one other struggling soul, is certainly imaginative and intelligent in its ideas. However, the savvy smarts within don’t quite sustain the running time and, much like its protagonist, the film becomes transparent in its motives and sentimentality.” Rotten Tomatoes gives it a 50% rating.

MTRCB Rating: PG

The Ghosting

BASED ON the Solante urban legend, the film follows Ken who knew that Grace met a little girl carrying a headless doll who asks for help to go home to a red house. Ken believes that the urban legend has something to do with the deaths in the neighborhood and Grace’s disappearance — however, no one believes him. Directed by Joey de Guzman, the film stars Khahil Ramos and Andrea Brillantes.

MTRCB Rating: R-13

AirAsia PHL profit surges in Q2

EARNINGS of Philippines AirAsia, Inc. surged in the second quarter as the budget carrier ferried more passengers and increased inflight, duty-free and baggage revenues.

Malaysia-based AirAsia Group Berhad reported its second quarter financial performance yesterday, where it said the Philippine unit reached a profit after tax of P593.07 million in the April to June period, up 777% from last year.

Revenues likewise grew 38% to P7.51 billion, driven by a 22% increase to 2.225 million in the passengers it carried during the period.

Its load factor, or the measure of its aircraft utilization based on passengers on a plane against its capacity, also rose four percentage points to 91% in the second quarter.

“In terms of profitability, we are excited to see…the improved performance of AirAsia Philippines,” Bo Lingam, president of AirAsia Group for airlines, was quoted as saying in a statement.

“We are also steadily growing our traditional airline ancillary revenue,” he added, noting inflight, duty-free and baggage revenues recorded a 42% growth in the Philippines during the second quarter.

The budget carrier is aiming to swing to profit this year from posting a net loss of P2.11 billion in 2018. It is also hoping to hit revenues of P30 billion by end-2019.

“With our performance so far this year, we are positive on our target for all our ASEAN AOCs (air operator’s certificate) to be profitable this year,” Mr. Lingam said.

AirAsia Group currently has presence in the Philippines, Malaysia, Indonesia, India, Japan and Thailand.

AirAsia Philippines is adding three new aircraft in 2019 with a goal of expanding its fleet to 30 planes in the next two years, from the current 23. It is continuously adding new routes and destinations, with an ongoing application to fly to Guam.

AirAsia Philippines’ majority stakeholder, businessman Michael L. Romero’s F&S Holdings, Inc., is targeting to launch an initial public offering of the company before the year ends. — Denise A. Valdez

Mnuchin says ultra-long bonds under consideration

TREASURY Secretary Steven Mnuchin said issuing ultra-long US bonds is “under very serious consideration” in the Trump administration, possibly setting up a move that would mark a historic revamp of the $16-trillion Treasuries market.

“If the conditions are right, then I would anticipate we’ll take advantage of long-term borrowing and execute on that,” Mnuchin said Wednesday in a Bloomberg interview in Washington. He said officials held a meeting earlier in the day to review the possibility.

The concept of issuing 50- or 100-year bonds dates back to at least 2009 and has recently gained traction within Treasury. For the Trump administration, issuing extremely long-term debt would limit the cost to taxpayers of plugging a budget deficit that’s headed to $1 trillion annually. Pension funds would enjoy a few extra points of returns amid falling yields.

Mnuchin said his renewed interest in long bonds was unrelated to the drop in yields on shorter-term US debt. The yield on 30-year Treasuries slid below 2% for the first time earlier this month, and they continued their decline to a new record 1.90% on Wednesday.

“It would be premature for me to comment on what our conclusion is,” Mnuchin said, adding that the department is “actively revisiting it, and it is something that is under very serious consideration.”

Following Mnuchin’s comments, the spread between five- and 30-year Treasury yields widened to 59 basis points from 56 basis points. Mnuchin’s comments helped push up 30-year yields to 1.97%, reversing the decline earlier in the day. Those moves retraced in early Asia trading on Thursday, with the 30-year yield dropping back to 1.93%.

Record-low interest rates make this an opportune time for the Treasury to revisit a proposal it’s shelved in the past. Some observers see a window for the US to issue extremely long-term debt instruments, even though the idea has been met with a cool reception on Wall Street.

Mnuchin studied the issue when he first took office in 2017, but put the idea to rest following a review with the agency’s group of market consultants, called the Treasury Borrowing Advisory Committee, or TBAC.

Treasury’s announcement last Friday after markets closed stirred some confusion among investors who questioned whether the renewed interest was a result of prompting from the TBAC or its primary dealers — or from President Donald Trump.

The decision to make the announcement came after a meeting between Mnuchin and White House economic adviser Larry Kudlow, according to people familiar with the matter. It was not the result of fresh information from market participants, the people said.

Among the risks of an ultra-long bond is the ebb and flow of demand over the course of an economic cycle. Buyers may be enthusiastic when yields are high, but in downturns, when the Federal Reserve is cutting rates, demand may evaporate, pushing government borrowing costs higher across different maturities.

“The determination we made at the time was that there was definitely some interest in it but it was not necessarily at the size and scale that we thought made sense to pursue,” Mnuchin said Wednesday. “Some time went by and I thought it made sense that we revisit this.”

The Treasury has examined the possibility of issuing long bonds about four times in the past decade. The TBAC has been unenthusiastic on the prospect of an ultra-long issue since it emerged.

Investors have snapped up 100-year bonds issued by the likes of Austria, although recent experiences in Argentina and Germany underscore some of the potential pitfalls for investors.

Alarms sounded in the Treasury market earlier this month after 10-year yields dipped below two-year ones, an event considered a harbinger of a US economic recession in the next 18 months.

The move caught the attention of Trump, who on Aug. 14 tweeted about the “CRAZY INVERTED YIELD CURVE!” and blamed the Fed for any negative effects.

“There are people who think that the yield curve can predict a recession — I don’t believe that,” Mnuchin said Wednesday. “The answer is: In environments when the market thinks that the Fed is going to lower short-term rates, and that’s built into the market expectation, people end up buying longer-term securities, and that’s what can lead to a flat or inverted yield curve. The market adjusts quicker than the Fed.” — Bloomberg

Tech firm Salarium updates payroll software for larger firms

SALARIUM

TECH START-UP Salarium said it launched the latest edition of its software that will ease the payroll preparation process, this time targeting larger companies.

On Thursday, Salarium launched Version 3.0 of its system, a scalable solution that can be customized to meet a company’s HR needs and integrated with other systems already in use.

Salarium’s systems are being used by 600 companies, mostly small and medium enterprises (SMEs) employing a total of 35,000 workers..

“What an SME wants and what a large enterprise wants are different things. Our Version 2.0 was made for SMEs. Which is why we built a different version for the large enterprise,” Salarium CEO and founder Judah Z. Hirsch told BusinessWorld on Thursday.

“We’ve been working hard to attract the large enterprises so we built a brand new system… making it much more reliable and global.”

Salarium Fintech Operations Head Marc De Juan said, “We are taking a proactive approach to data privacy and as well as a reactive approach (to contain risk from) data breaches or… data privacy. One of which is implementing the right technology in place which is robust enough (to resist attack).” — Gillian M. Cortez