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Gov’t makes full award of 20-year bonds

THE BUREAU of the Treasury fully awarded its P20-billion bond offer.

THE GOVERNMENT made a full award of the reissued 20-year Treasury bonds (T-bond) it offered yesterday amid healthy demand as market participants await the policy decision of the local and US central banks.

The Bureau of the Treasury (BTr) raised P20 billion as planned from its T-bond offer yesterday after receiving bids totalling P29.814 billion.

The 20-year papers, which carry a coupon rate of 6.75%, fetched an average rate of 5.015%, 15.5 basis points (bp) lower than the 5.17% average fetched when the debt papers were last offered on June 11. The bonds have a remaining life of 19 years and six months.

Market players asked for returns ranging from 4.98% to 5.05% yesterday.

At the secondary market yesterday, the 20-year bonds fetched 5.022%.

National Treasurer Rosalia V. De Leon said the Treasury continued to see “very good and healthy” results during the auction as it saw strong demand from investors.

“We have strong demand for the long end of the curve, recognizing that first, the liquidity, and also the anticipation of the cut coming from the FOMC (Federal Open Market Committee) meeting,” Ms. De Leon told reporters yesterday.

The Bangko Sentral ng Pilipinas (BSP) completed its phased reduction of banks’ reserve requirement ratios last Friday, bringing it down to 16% for universal and commercial banks and six percent for thrift lenders, unleashing billions of pesos into the financial system.

Meanwhile, the US Federal Reserve is widely expected to trim rates when its policymaking FOMC meets on July 30-31. Economists see this as a move to counter headwinds brought by trade tensions as well as the slowing global growth.

Ms. De Leon added that market participants also factored in the earlier statements of BSP Governor Benjamin E. Diokno.

“Also, (market players also looked into) the earlier pronouncements of Governor Diokno about the cut in the policy rate that it would still be on the table. But of course, it’s still data dependent. They will continue to be patient as well,” she added.

Earlier, Mr. Diokno expressed commitment to cutting benchmark rates amid expectations of a rate cut from the Fed. “Even before the position of the Fed, we are already committed to cutting,” the central bank chief said last July 12. “So that’s an additional input to our decision.”

Sought for comment, Robinsons Bank Corp. peso debt trader Kevin S. Palma said the auction result was within expectations.

“The market awaits the FOMC decision this Thursday, where the Fed is widely expected to cut by 25 basis points,” Mr. Palma said.

The government is set to borrow P230 billion from the domestic market this quarter through Treasury bills and T-bonds.

It is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — Karl Angelo N. Vidal

Museum of Future Experiences uses VR for mind-expanding trips

By Claire Ballentine, Bloomberg

IF YOU find day-to-day reality terrifying, I’ve found a cure.

The Museum of Future Experiences, which opened last week in New York’s SoHo neighborhood and runs through the end of August, is the latest millennial “museum” to pop up, but it’s not one for taking selfies in front of colorful backdrops and sharing them on social media. Instead, visitors wear a virtual-reality-inducing Oculus Rift S headset and prepare to have their minds blown.

The museum is the brainchild of Bridgewater hedge fund alum David Askaryan, 32, who came up with the idea after realizing that virtual reality had failed to take off, not because of the actual technology, but because of a business model that mistakenly assumed people were going to buy VR headsets for their personal use.

“Most VR companies relied on a consumer infrastructure that isn’t there,” he says. “Virtually nobody has a VR headset at home.” Consumer VR software investments dropped off a cliff in 2018, down 59% to $173 million, from $420 million a year earlier, according to SuperData, a digital games and VR market-research company owned by Nielsen Holdings.

Mr. Askaryan’s solution was to create a museum experience — which comes with the cute nickname MoFE — using VR in set locations for short periods of time. He describes it as “a curated cerebral experience blending immersive theater, psychology, and virtual reality for an intimate exploration of individual and collective consciousness.” It’s funded by prestigious tech accelerator Y Combinator; tickets, which are purchased ahead of time, are $50 for an hour.

Kent Bye, host of the Voices of VR Podcast, sees potential in a model that creates spaces where individuals can test-drive VR, instead of buying their own $400 headsets. “More and more people want to be immersed into their entertainment,” he says. “I think we’re going to start seeing more people putting their body into these experiences.”

Especially millennials. A study by Harris Group found 72% of people in this generation prefer to spend money on experiences than on material things. Jeremy Bailenson, founding director of Sanford University’s Virtual Human Interaction Lab and an adviser to MoFE, says VR can be a tool “to help people think about themselves and how they relate to others.”

MoFE is not the first location-based VR experience. Tribeca Film Festival has a virtual arcade and a 360-degree theater, and at the Franklin Institute in Philadelphia visitors can use VR headsets to dive into the ocean or soar through the solar system.

Entertainment destination VR World in New York allows customers to use Oculus or HTC Vive headsets for video games, flight simulations, or movies, starting at $44 for two hours. “I consider VR to be the most impactful medium known to man,” says VR World Chief Executive Officer Leo Tsimmer. “We’re not looking at marking technology or marketing headsets. We’re in the business of entertaining and of creating fun times for friends.”

Gabriela Baiter, founder of experiential retail studio Whereabout, agrees. “I think it’s a result of people just craving human connection,” she says about the trend of location-based VR. “We’re starting to become more interested in getting out there and interacting with other people.”

I’d never tried VR before, and my video game expertise is limited to dodging banana peels in Mario Kart. Mr. Askaryan says that’s the point: “It opens up VR to a whole new set of customers.” So on a blisteringly hot Friday afternoon, I arrived with five others to “explore our individual and collective consciousness” in SoHo, itself a land where Instagram photos and Snapchat filters are valued as much as anything visible in real life.

The experience breaks down into roughly four 15-minute intervals. Once inside the loft space, we’re informed — three times — that it previously served as a workspace for Andy Warhol. After a receptionist inquires, rather ominously it sounds to me, if we’re ready for our mind-altering experience, we’re greeted by museum actors dressed in full white lab technician outfits worn under a clear plastic gown resembling a garment bag. It’s mad scientist-meets-futuristic time traveler, a look enhanced by their slicked-back hair. They warn us to inform them if our emotions overwhelm us and we need to take a break.

The actors lead our group to a downstairs room, where we’re seated in a circle with our backs to each other and given a paper and a pencil. We’re asked a series of 21 questions, to which we record our answers like an elementary school spelling test. The inquiries start off simple: How anxious are we on a scale of one to 10? (I was a four earlier in the day, a 10 now.) Then they rapidly progress into more uncertain territory: Did we regularly converse with any dead family members? Have we had an out-of-body experience? Were we worried about artificial intelligence destroying the world?

We submit these “prescriptions” and line up single file for our personalized VR immersion in the next room. Then we’re seated in partitioned booths and strap on Zorro-style black sanitary masks before the technicians help us situate the clunky VR headsets on our heads.

The images are supposed to be tailored to you, based on answers to the previous questionnaire. I must have done something wrong, because my screen shows a menacing female robotic figure who slowly emerges from a sewer system as she repeats the words “Do you remember the feeling of being watched as a child?”

I’ve never done LSD, but I imagine this is its effect in the mind of someone extraordinarily uncreative. After 10 minutes, the technician comes in and tells us to take a moment to let any insights sink in. I rack my brain for any memories of strangers peering through the window of my childhood bedroom.

I expect another immersive experience to soon follow, but the technicians then lead us to an adjacent room, leaving me to work out this newly introduced trauma with a qualified therapist. The passageway is lined with white gauze that drapes onto a small stage with six orange reclining chairs that look like something a dentist would use for the world’s worst dental canal.

This time they strap a sensor to our chests that could vibrate in sync with our VR experience. For this session, all six of us experience the same virtual reality, which is a walk through an unidentifiable cityscape with glowing orange flames in the distance. The blaze slowly grows larger until it swallows the sky in a tornado of fiery destruction.

The technicians tell us these images are an amalgamation of the group’s inner thoughts. I decide then and there to never see any of these people again.

To decompress from the immersion, we go back upstairs into a sitting area with cushioned beanbags. In one corner of the room is a small table with a single drawer and a gold sculpture of a thumbs-up signal, encircled by clear plastic curtain panels and illuminated by ceiling lights.

Each of us receives a “relic” in the table’s drawer, which is a postcard with an image to commemorate our journey. Mine features multiple colorful birds, looking much more peaceful than I felt.

In a circle, our group discusses the immersion and compares the images we saw with a mixture of daze and confusion. Evidently, I was the only one to see a robotic figure informing me of previously unacknowledged childhood terror — everyone else relaxed in a meadow or flew through white puffy clouds.

The entire experience from start to finish took about an hour, but our time with the VR headsets lasted only a combined 20 minutes. Although I’d expected a bit more time with it, in the end, maybe it was for the best.

Mr. Askaryan’s business model has potential — especially for someone who would never dream of shelling out $400 for a headset. But I’ve never been so happy to walk out into the reality of 98-degree heat in New York.

SEC moves deadline for NPOs to submit disclosure forms

THE Securities and Exchange Commission (SEC) has moved the deadline for registered nonstock corporations to submit the mandatory disclosure form until 30 days after it comes out with new guidelines.

In a notice posted on its website Monday, the country’s corporate regulator said the amendments will be in line with Memorandum Circular No. 15, Series of 2018, or the Guidelines for the Protection of SEC Registered Non-Profit Organizations (NPO) from Money Laundering and Terrorist Financing.

“The new mandatory disclosure form will be used upon effectivity of the amended guidelines. All concerned non-stock corporations are thus advised to await the release of the amended guidelines which will be posted at the commission website,” the SEC said.

The deadline for the submission of the form was originally scheduled on July 31.

Entities who have yet to submit their mandatory disclosure forms may submit their new mandatory disclosure form within 30 days after the new deadline.

A mandatory disclosure form is a six-page form which requires a nonstock corporation to provide information on its respective area of operations, accreditations it has secured from different government bodies, and information on whether it raises funds, as stated in its articles of incorporation.

It further asks for information on actual raising or disbursing of funds for charitable, religious, cultural, educational, social, or fraternal purposes. They must also provide the source of funds and their intended beneficiaries.

The form is part of the commission’s efforts to combat money laundering and terrorist financing.

The NPO Guidelines, published in November 2018, aims to protect nonprofit organizations from money laundering and terrorist financing abuse, and also to enhance the commission’s registration and monitoring system by obtaining the necessary information from such organizations. — Arra B. Francia

BoJ keeps policy steady, hints at more easing if inflation sputters

TOKYO — The Bank of Japan (BoJ) held off on expanding stimulus on Tuesday but signaled its readiness to do so “without hesitation,” if a global slowdown jeopardizes the country’s economic recovery.

Growing fallout from the US-China trade war has prompted major central banks to signal more easing and put pressure on the BoJ, which has far less policy ammunition left to deal with a significant downturn.

The central bank also trimmed its inflation forecasts and warned that risks to the outlook were skewed to the downside, nodding to heightening overseas uncertainties that could further delay achievement of its elusive 2% inflation target.

As widely expected, the BoJ maintained its short-term interest rate target at -0.1% and a pledge to guide 10-year government bond yields around 0%. It also said it was maintaining its massive asset buying program.

The BoJ kept intact its forward guidance, or a pledge central banks make on future monetary policy. It committed to keep interest rates at current ultra-low levels “for an extended period of time, at least through around spring 2020.”

But the central bank added a line in its policy statement that it will take additional easing steps without hesitation “if there is a greater chance the momentum for hitting its price target is lost.”

The language was identical to what BoJ Governor Haruhiko Kuroda has recently said, in talking about the need to keep the economy on track to achieve the BoJ’s price goal.

“The main point of today’s decision was the statement’s new line on the BoJ’s readiness to ease,” which is similar to the European Central Bank’s pledge to cut rates if necessary, said Hiroshi Shiraishi, senior economist at BNP Paribas Securities.

“While other central banks are heading toward additional easing, the BoJ felt the need to signal its easing bias to prevent an unwelcome spike in the yen.”

The decision on maintaining its interest rate targets was made by a 7-2 vote, with board members Goushi Kataoka and Yutaka Harada dissenting. Kataoka said the BoJ should ease further by cutting its short term rate target.

Kuroda was scheduled to hold a news conference at 3:30 p.m. (0630 GMT) to discuss the decision.

STRONG DOWNSIDE RISKS
In a quarterly review of its long-term projections, the BoJ slightly trimmed its inflation forecasts for the current fiscal year ending in March 2020, and the following year.

While maintaining its view that Japan’s economy was likely to continue expanding, the BoJ warned of strong risks such as global uncertainties and soft inflation expectations.

“The momentum for achieving 2% inflation is sustained, but lacks strength,” the BoJ said in a quarterly report on the economic and price outlook.

The European Central Bank last week all but cemented market expectations for a September rate cut, while the US Federal Reserve is seen cutting its policy rate by a quarter of a percentage point on Wednesday.

Easing by other major central banks is raising worries of a jump in the yen that could further strain Japanese exporters.

But years of near-zero rates have hurt financial institutions’ profits by narrowing their margin, leaving the BoJ with few tools to fight the next recession, let alone ramp up steps to accelerate inflation to its 2% target.

Japan’s annual core consumer inflation stood at 0.6% in June, the slowest pace in about two years.

Weak exports have also cast doubt on the BoJ’s view that an expected pick-up in overseas demand in the second half of this year will ease the pain on the economy from a scheduled sales tax hike in October.

Data earlier on Tuesday showed Japan’s factory output tumbled the most in nearly 1-1/2-years in June, adding to a slew of indicators suggesting slowing global growth was taking a toll on the export-reliant economy.

Many analysts expect yen moves to be among key triggers for further BoJ easing.

“The BoJ probably wanted to save its ammunition because the yen wasn’t rising much,” said Hiroaki Mutou, chief economist at Tokai Tokyo Research Institute.

“If Fed moves trigger yen rises, the BoJ could either strengthen forward guidance, allow 10-year bond yields to move in a wider band, or do both,” he said.

The yen was little changed versus the dollar on Tuesday after the BoJ announcement, trading near a three-week low. — Reuters

Botong’s mural is not lost — it is safe at the museum

IN 1968, Manila City Mayor Antonio J. Villegas commissioned a painting from National Artist Carlos “Botong” Francisco. The result was Filipino Struggles Through History, composed of a series of four paintings, for the Manila City Hall. The huge mural depicts significant events in the country’s history — from the great Rajahs who ruled Tondo to events in the American period. The artist finished what was to be among his greatest artworks shortly before he died on March 31, 1969. In 1996, the mural was declared a National Cultural Treasure by then National Museum director Gabriel S. Casal.

Earlier this month, former Manila mayor and Buhay partylist representative José Livioko “Lito” Atienza, Jr. called for a congressional inquiry on the “disappearance” of the Filipino Struggles Through History from the walls of the city hall’s Bulwagang Antonio J. Villegas. The former Manila city mayor demanded the return of the artwork after noticing that the original work had been replaced by a “poor tarpaulin replica” during the inauguration of Mayor Francisco “Isko” Moreno Domagoso on June 30.

But the mural had not disappeared. It was right across the street.

RESTORATION AND EXHIBITION
Over the years, the mural had suffered extensive damage due to a plumbing problem in city hall. In 2013, former Manila Mayor Alfredo S. Lim requested that it undergo restoration under the supervision of the National Museum, with funding for the project coming from the Tourism Infrastructure and Enterprise Zone Authority.

After the restoration was completed in 2015, the masterpiece was put on public view at the Senate Session Hall of the National Museum of Fine Arts in February 2018. The museum is right across Taft Avenue from Manila City Hall.

According to a post dated Feb. 15, 2018 on the National Museum’s Facebook page, an approved landmark agreement was made in 2017 by former Mayor Joseph Erjercito Estrada and the Manila City Council which allowed “the original paintings to remain at the National Museum for enhanced public access and appreciation.”

WHEREABOUTS NOT A MYSTERY
National Museum Director Jeremy Barns doubts that Mr. Atienza is unaware of the mural’s current location.

“Definitely, he (Mr. Atienza) knows that the painting has been with the National Museum since 2013 because his son, Ali Atienza, came to check to make sure it was there,” Mr. Barns told BusinessWorld, at the sidelines of the general assembly of the Museum Foundation of the Philippines, Inc. on July 25 at the National Museum for Natural History.

A 2013 post on the National Museum’s Facebook page stated: “[Manila] Councilor Ali Atienza visited the National Museum yesterday to inspect the conservation work on the 10-panel painting of Carlos ‘Botong’ Francisco’s Struggles of Filipinos Through History (1968).” The post also stated that the younger Mr. Atienza “was also supplied with the documents that enabled the temporary transfer of the 65-meter National Cultural Treasure painting to the NM while it goes through the process of making them last beyond our lifetime.”

“The fundamentals have always been there. Number one: the city of Manila owns the painting. Number two: as long as it’s with the National Museum, we are acting as its trustee for the city of Manila. We are the custodian of the painting on their behalf. It takes a lot of work to make sure that the painting stays safe and secure,” Mr. Barns affirmed.

Mr. Barns added that the former mayor’s claims that the transfer of the mural was “illegal” is without basis. “We started [the restoration] with mayor [Alfredo] Lim. Then when mayor [Joseph] Estrada came in, we had to explain it to him. So now mayor Isko [Moreno] came in, we explained it to him.”

According to news reports last week, current Manila City Mayor Francisco “Isko” Moreno Domagoso supports Mr. Atienza’s call to return the mural to the Manila City Hall.

“I am calling the NHCP, NCCA, isoli niyo ’yong Botong Francisco sa City of Manila. Maliwanag pa sa sikat ng araw ’yon. Amin ’yon. Taga-Maynila ’yon (I am calling on the National Historical Commission of the Philippines, National Commission for Culture and the Arts, return the Botong Francisco to the City of Manila. It is clearer than sunlight. It is ours. It is from Manila),” Mr. Domagoso said.

On July 22, Mr. Domagoso held a discussion with cultural agencies officials regarding the protection of the Manila’s cultural heritage.

“At the meeting I assured the [current] mayor (Mr. Domagoso) that we had an understanding with former mayor (Joseph) Estrada, and that [there is] no problem to come to a new understanding under [his] leadership,” said Mr. Barns.

According to the museum director, the landmark agreement on the mural’s public exhibition runs until 2022. “They (Manila City Hall) will be the first to install it there when the time and conditions are right because it really belongs to them,” he said.

“As I told the mayor, we can re-open everything, no problem. We respect his position and leadership. We are one with him in trying to bring back the pride and glory of Manila as our premiere cultural city,” Mr. Barns said, referring to the aim of focusing on the promotion of arts and cultural heritage in Manila. “We hope to do so many things with his administration. And I do not want this to dominate our agenda.”

“The last thing we want at the museum is to treat a National Cultural Treasure like some kind of football, rather than working together and have it transcend and become a national symbol that unites Filipinos.” he said. — Michelle Anne P. Soliman

MPIC eyes issuance of exchangeable bonds

METRO PACIFIC Investments Corp. (MPIC) is planning to issue exchangeable bonds in the coming months as it prepares the initial public offering (IPO) of its health care holding firm Metro Pacific Hospital Holdings, Inc. (MPHHI), its chairman said.

“The process has started for the hospitals,” MPIC Chairman Manuel V. Pangilinan told reporters, adding that a public listing is the “correct” direction for the business segment.

“I think we will eventually put it to bed, the IPO, hindi ko lang alam talaga kung ano’ng (I really don’t know) whether the schedule is firm enough that we can conclude it within the year,” he added.

MPIC’s health care segment includes operations and management of hospitals and nursing colleges and related enterprises under MPHHI and subsidiaries.

“We’re thinking of perhaps to be certain that we can raise the funds for MPIC and for the hospitals itself that maybe we should issue an exchangeable bond within the next two to three months that is convertible directly to the hospitals, to the hospital holding company,” he added.

An exchangeable bond consists of a straight bond and an option to swap the bond for the stock of the a company other than the issuer (for instance, the issuer’s subsidiary or affiliate) at a future date and under certain conditions.

Mr. Pangilinan said the size of the bond issuance would be around the same as the target proceeds of the IPO, which he did not disclose.

“Depends on what the estimated IPO proceeds are. So it’s got to be at some broad estimate. So that’s the size. It would be the same people who would buy the exchangeable [bonds] because what we are looking at is a mandatory exchange into MPHHI shares at pre-determined ratio,” he said.

Mr. Pangilinan said there was no update on The Medical City, which he described early this year “the last remaining major hospital in Metro Manila” for acquisition. He previously said that he had talked to the two camps disputing ownership of the hospital.

“We have not followed that up. I think the hospitals group is very busy with expanding in respect of hospitals, existing hospitals other than Medical City and with this IPO, the IPO fundraising (for MPIC),” he said.

MPIC’s hospital group comprises of full-service hospitals and a mall-based diagnostic and surgical center. It is the largest private provider of premier hospital services in the Philippines.

MPHHI is developing the Philippines’ first nationwide chain of hospitals to deliver comprehensive in-patient and out-patient hospital services, including medical and surgical services, diagnostic, therapeutic intensive care, research and training facilities in strategic locations.

Within its portfolio, eight are in Metro Manila: Makati Medical Center, Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, Asian Hospital, De Los Santos Medical Center, Manila Doctors Hospital, Marikina Valley Medical Center Inc., and Dr. Jesus C. Delgado Memorial Hospital.

In other parts of the country, it has interest in Davao Doctors Hospital, Riverside Medical Center in Bacolod, Central Luzon Doctors Hospital in Tarlac, West Metro Medical Center in Zamboanga, Sacred Heart Hospital of Malolos, Inc. in Bulacan and St. Elizabeth Hospital, Inc. in General Santos City.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

PBB raises P3 billion via notes

PHILIPPINE Business Bank (PBB) raised P3 billion in fresh funds via a corporate note issuance to support its consumer loan business.

In a disclosure to the local bourse on Tuesday, the Yao-led lender said it issued P3 billion in three-year corporate notes in partnership with BDO Unibank, Inc. and BDO Capital & Investment Corp.

The issuance marks the maiden tranche of PBB’s P10-billion debt program approved by its board of directors in March.

The thrift lender declined to disclose the coupon rate of the debt papers, although PBB President and Chief Executive Officer Rolando R. Avante said in a text message that the pricing was “based on market conditions.”

“The proceeds from the notes facility will be used to finance the bank’s growing funding requirements and capitalize on attractive lending opportunities,” the bank said in the disclosure.

In particular, Mr. Avante said the raised funds will “address balance sheet term items related to consumer loans.”

Last year, PBB said it is looking at raising up to P10 billion in long-term negotiable certificates of deposit (LTNCD), which will allow the bank to “capitalize on attractive lending opportunities as the Philippine economy continues to expand.”

Mr. Avante previously said that the lender’s LTNCD issuance will depend on the bank’s needs as well as market conditions.

Like regular time deposits offered by banks, LTNCDs offer higher interest rates.

However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”

PBB booked a P251-million net income in the first quarter, up 38.5% from P181.3 million in the same period last year, on the back of its lending and treasury businesses.

Shares in PBB closed at P13.10 apiece on Tuesday, down 10 centavos or 0.76%. — Karl Angelo N. Vidal

Alicia Keys and Swizz Beatz snap up work from in-demand artist

MUSIC POWER couple Alicia Keys and Kasseem Dean, also known as “Swizz Beatz,” bought paintings by emerging artist Tschabalala Self, whose prices have risen along with her critical acclaim.

Two of the works — Blonde and Father — were included in the 29-year-old artist’s solo exhibition which opened Saturday at Art OMI, a sculpture park in Ghent, New York. A photograph of Mr. Dean and Ms. Keys standing in front of the paintings was posted on Mr. Dean’s Instagram page last month.

“We actually got three the same day, but one is being donated to the Brooklyn Museum,” Mr. Dean, a museum trustee, said Friday in a phone interview. “You can feel the energy from her work. It’s amazing that an artist can leave their vibrations on the work.”

Ms. Self, whose depictions of exaggerated black female bodies combine painted, printed and sewn materials, is among the most sought-after young artists. Her exhibitions sell out and her works have been shown at museums in the US and China. In June, her painting Out of Body fetched £371,250 ($460,000) at Christie’s, more than six times the high estimate and a record for the New York-based artist.

“She has a way of breaking the rules,” said Mera Rubell, a Miami-based collector, whose family foundation included Ms. Self in its annual survey of new talent. “We are not used to seeing a black female figure from a perspective of a female artist. It’s powerful.”

Mr. Dean and Ms. Keys, a multi-Grammy award winning musician, are well-known collectors. Their Dean Collection focuses on works by black artists. Their trove of photographs by Gordon Parks, the largest in private hands, was recently on view at the Ethelbert Cooper Gallery of African and African American Art at the Hutchins Center at Harvard University.

“We would like to welcome the amazing @tschabalalaself into @thedeancollection,” Mr. Dean said in his Instagram post. “Her work will make waves in the culture 100%.”

The couple has been following Ms. Self’s work for some time. Mr. Dean included Ms. Self in an exhibition featuring black artists he curated in Los Angeles during Frieze art fair in February.

Ms. Self had her first solo exhibition four years ago at Thierry Goldberg gallery in New York, shortly after graduating from the Yale University School of Art. At the time, her prices were less than $10,000. Upcoming solo exhibitions include those at Baltimore Museum of Art and ICA in Boston, according to Ron Segev, owner of Thierry Goldberg.

Segev, who sold the paintings to Ms. Keys and Mr. Dean before the June Christie’s auction, declined to say what they paid. Gallery prices for the artist’s new works topped out at $80,000 before the record-setting sale, he said. — Bloomberg

Fruitas sets P2-billion revenue target for this year

FRUITAS Holdings, Inc. (FHI) is aiming to grow consolidated revenues by a quarter to P2 billion by the end of 2019, as it adds more stores and distribution channels.

The operator of food and beverage kiosks such as Buko Loco and Johnn Lemon reported its consolidated revenues stood at P1.58 billion as of end-2018, 37% higher than the previous year’s P1.15 billion.

“With the favorable economic environment and more opportunities for expansion, the company is looking at a full-year consolidated revenue of P2 billion in 2019,” Fruitas said in a statement.

The company is planning to unveil new brands this year, and is on track to open its 1,000th store in the next few months. It currently has over 970 stores nationwide.

To widen its distribution channels, the company recently partnered with Grab Philippines to make products from Fruitas, Buko Loco, Buko ni Fruitas, De Original Jamaican Pattie, Johnn Lemon, Sabroso Lechon, House of Desserts, Black Pearl, and Tea Rex available to more customers in Metro Manila.

Fruitas fresh coconut water was also made available in 50 Andok’s stores. It is also the supplier of coconut water delivery company, CocoDelivery, in the National Capital Region.

“We are always finding ways to make it easier for Filipinos to access our products. We want to encourage more frequent consumption and continue to reach out to first-time customers,” said Lester C. Yu, president and chief executive officer of FHI, said in a statement.

“The evolving needs of our customer base provide an opportunity for us to expand our distribution channels,” he added.

Earlier this year, FHI said that is planning to file an application for an initial public offering (IPO) with the Securities and Exchange Commission by second half of the year. It is eyeing to raise up to P2 billion from the initial offering, in a bid to double its store network in the next five years.

FHI was founded in 2002 by Mr. Yu from a single food cart location in Manila. Aside from food carts, it now has two food parks in Quezon City, namely 150 Maginhawa Food Park, and Le Village. — Vincent Mariel P. Galang

Barclays, JP Morgan among banks facing UK rigging suit

LONDON — Barclays, JP Morgan, RBS, UBS and Citigroup are being sued by investors over allegations they rigged the global foreign exchange market, in a test of US-style class actions in Britain.

The claim, estimated to be worth more than 1 billion pounds ($1.24 billion), was filed at the Competition Appeal Tribunal (CAT) on Monday, US law firm Scott + Scott said.

JP Morgan, RBS, UBS, Barclays and Citi declined to comment.

Some of the world’s biggest investment banks have already paid more than a combined $11 billion in fines to settle US, British and European regulatory allegations that traders rigged the currency markets.

Litigators have long hoped to replicate in Britain the success of US class action claims against banks, including Goldman Sachs, HSBC and Barclays, that have resulted $2.3 billion in settlements for big investors.

In May the European Union fined five banks a combined €1.07 billion ($1.19 billion) for forex rigging through cartels of traders known as “Essex Express” and “Three Way Banana Split”.

The lawsuit is being led by Michael O’Higgins, the former chairman of British watchdog the Pensions Regulator, and is being funded by litigation finance group Therium.

O’Higgins told Reuters the total value of the claim would depend on the number of forex trades executed in London for UK-domiciled units — which will be automatically included in the action — and the proportional impact of rate rigging on these.

Given the size of London’s forex market, O’Higgins said the total value would likely exceed a billion pounds.

“Even on a relatively conservative assumption it’s certainly a billion pounds and possibly several,” O’Higgins said.

“Markets should be fair as well as free and in this case the markets weren’t fair.”

CLASS ACTION TEST
The “massive” action is a “perfect” case to be brought as a so-called opt-out collective class action for breaches of UK or European Union competition law, David Scott told Reuters.

“It is a very difficult case to put together individual damages which are significant enough,” the Scott + Scott lawyer added.

Britain’s Consumer Rights Act (CRA) in 2015 introduced “opt-out” class actions for breaches of British or EU competition law. In such cases, UK-based members of a defined group will automatically be bound into a legal action unless they opt out, saving on hefty advertising costs. Overseas-based claimants, however, will still have to actively sign up.

The regime is designed to offer a more effective route to compensation for consumers and businesses who fall victim to anti-competitive conduct and is overseen by the CAT.

Its first major test case — a 14 billion pound claim against Mastercard for allegedly overcharging more than 45 million people in Britain over a 16-year period — was blocked by the CAT in 2017, a decision that was overturned at the Court of Appeal and is set to be heard by the Supreme Court.

This wrangling has already delayed other class actions and some law firms have chosen a different legal route for offering pension funds, asset managers and other institutional investors the chance to hold banks to account.

Law firm Quinn Emanuel Urquhart & Sullivan in December filed a damages claim against six banks through London’s commercial courts, which it said has already signed up some of the biggest institutional investors. — Reuters

Cruz-Diez, Venezuelan kinetic artist, 95

CARACAS — Carlos Cruz-Diez, a Venezuelan artist who shaped the field of kinetic and optical art during the 20th century, died in Paris on Saturday, his foundation said on its website on Sunday. He was 95.

Born in Caracas in 1923, he moved to France in 1960 after studying at Caracas’ School of Fine Arts. His abstract works are defined by the use of color and lines to create the impression of movement, and are on display at museums including New York’s Museum of Modern Art, London’s Tate Modern, and Caracas’ Museum of Fine Arts.

“It is with deep sadness that we announce the death of our beloved father, grandfather and great-grandfather, Carlos Eduardo Cruz-Diez,” the foundation wrote. “Your love, your joy, your teachings and your colors will remain forever in our hearts.”

Despite living much of his life in Paris, he left his mark in his native Venezuela, most notably through the colorful murals lining the walls and floors of the Simon Bolivar International Airport serving Caracas.

While he rarely commented publicly on his home country’s turbulent politics, he recently expressed regret at living much of his life abroad.

“I regret not being able to have developed my artistic life in my country, surrounded by my people,” Mr. Cruz-Diez told Venezuela’s El Nacional newspaper in a 2014 interview. — Reuters

PLDT, Globe’s rating differential to narrow — Fitch

THE credit rating margin between rivals Globe Telecom, Inc. and PLDT, Inc. is expected to narrow in the next 18 months, as the Ayala-led telco shows improved cash flows.

Fitch Ratings said in a report yesterday the growth of Globe is seen to outpace that of PLDT in the near term, resulting in intensified competition.

“Leverage headroom for PLDT is likely to be more limited over the next three years amid the larger capex needed for both its fixed-broadband and mobile network,” it said.

“We forecast leverage — measured by FFO (funds from operations) adjusted net leverage — to increase to around 3.0x for PLDT and Globe as they ramp up capex expansion ahead of a new mobile operator, Dito Telecommunity Corp. (formerly Mislatel),” it added.

Globe’s latest credit rating outlook from Fitch is “BBB-” with a stable outlook, and PLDT’s is “BBB,” also with a stable outlook.

Both telcos boosted their spending allocation this year to fuel expansion, with Globe increasing its capex by 46% to P63 billion, and PLDT ramping up spending by 66% to P78 billion.

Fitch said Globe’s revenue is seen to grow at a high single-digit rate because of its increasing market share in mobile and already stronger postpaid subscriber base. This is faster than the forecast for PLDT which is a mid single-digit growth.

“Globe’s continued outperformance in mobile revenue reflects its well-executed strategy,” the credit rater said.

But it noted PLDT’s revenues will be driven by growth in home broadband subscribers.

“Still, PLDT benefits from wider service diversification and a more entrenched fixed-line position than Globe, which Fitch regards as advantageous for fixed-mobile convergence,” it said.

“This allows operators to mitigate pricing pressure in mobile, therefore supporting a higher leverage tolerance of 3.0x for a PLDT downgrade to ‘BBB-’ compared with Globe’s 2.5x for an upgrade to ‘BBB’.”

Fitch also said the two telcos are approaching network expansion differently, with PLDT focusing its investments on fiber to boost its home broadband and enterprise businesses, and Globe on fixed-wireless broadband to expand its geographic reach.

“Fitch believes diversification into fiber broadband will strengthen the incumbents’ competitive advantage as demand for fiber backhaul and faster-speed fiber-broadband services increases with the proliferation of video streaming and use of multiple devices in the home,” it said.

The report also noted the arrival of new major telco player Dito is not seen to have an immediate impact on the giants.

“The new entrant is likely to have a limited network for at least a year from now amid the lengthy regulatory approval process for cell-site permits and the non-mandatory nature of infrastructure sharing in the Philippines,” it said.

“We believe the newcomer will pursue aggressive pricing to win market share. However, it would need to offer more than mobile services to tap into fast-growing home-broadband and enterprise services to generate sufficient returns,” it added.

Fifth-generation (5G) network is unlikely to bring disruptive effects to competition as well, as Fitch said its rollout in the country will still be limited this year.

“The pace of 5G adoption will depend on the affordability and availability of compatible devices. Prices of 5G customer-premises equipment would need to fall considerably for mass-market adoption to take place in emerging markets,” it said.

Globe launched 5G to the home last month, and PLDT aims to launch 5G services early next year. — Denise A. Valdez

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