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Tencent teams up with Pokémon to develop new mobile game titles

TENCENT Holdings Ltd. and Pokémon Co. will jointly develop games, an alliance that may help the Nintendo Co.-backed company crack the world’s largest mobile gaming arena.

Tencent, whose WeChat social media service is used by more than a billion people across China, said its TiMi Studio Group will take the lead in developing titles with the Japanese company behind the popular monster-hunting franchise. The two have struck a broad agreement on collaboration, Tencent said in a post on its official Weibo blog without elaborating.

The social media giant could prove a strong ally for Nintendo and Pokémon Co. in China, where local titles dominate and gamers have shunned consoles in favor of smartphones and PCs. Developers there have also complained of rampant piracy, where popular titles tend to trigger a wave of copy-cats.

Tencent’s own Let’s Hunt Monsters has drawn fire for adopting many features of viral phenom Pokémon Go, from the use of real-world locations to how players toss balls to capture monsters. The title has consistently ranked among the 30 highest-grossing apps in China, according to researcher Sensor Tower.

Pokémon Co., in which Nintendo owns a significant stake, is looking to follow up on its surprise hit Pokémon Go, which created a sensation in the gaming community by letting users hunt monsters and prizes in the real world with their smartphones. In May, it unveiled several new initiatives at an event in Tokyo, including a Detective Pikachu sequel for the Switch console and a new device for tracking sleep.

Tencent, in turn, gains a strong franchise to bolster its international presence. The Chinese company seeks growth beyond China and its executives have been keen to assuage game developers’ concerns about intellectual property infringement.

“While Tencent has focused mostly on China in the past, we are now looking at the gaming sector with a much more global perspective,” TiMi executive Vincent Gao said in an interview in June. “This will make the company pay better attention to IP protection.” — Bloomberg

Max’s Restaurant launches new TV ad, loyalty card, and dining promos

IN THE early days, animals in the forest bullied the sun for producing unbearable heat. When the sun disappeared for quite a long time, the animals apologized daily by writing “Sorry” on stone, smoke, and fire, and spelling the word out with their bodies. In desperation for sunlight, the chicken unceasingly chuckled until the sun rose. Unfortunately, when the chicken and the sun gave each other a high five upon rising, the chicken turned into fried chicken. Thus is the legend, according to Max’s Restaurant.

On July 18, Max’s Restaurant launched the commercial titled “Rise Up,” the third installment of its “Every Kind of Family” campaign, as well as dining promotions in celebration of the brand’s 74 years.

“‘Rise Up’ gets to the heart of Max’s Restaurant as an institution; more than The House That Fried Chicken Built, it has also been a place where people of different ages, backgrounds, and beliefs have come together for over seven decades,” Max’s Restaurant Chief Operating Officer Paolo Serrano was quoted as saying in a press release.

Having groups of dinners across generations at its branches has been a constant for the brand. “If you walk into most restaurants out there, you see a very diverse profile of diners eating. But I think the one thing that makes Max’s so unique is when you look at the table, the groups are very multi-generational” marketing director of Max’s Group Inc. Mark De Joya told BusinessWorld shortly after the launch at My Cinema Greenbelt 3.

Along with the launch of the TVC came the release of the Max’s Reward’s Card. A minimum single-receipt food purchase of P1,000, entitles guests to one card.

Cardholders get a 10% discount when they order P500 to P10,000 worth of food. Cardholders may also avail a free Max’s Best Plate — fried chicken, lumpiang shanghai (fried spring rolls), pancit canton (noodles), Max’s tofu or chicken skin, sweet kamote (sweet potato) fries, rice, and a caramel bar — seven days before or after their birthday.

On July 31, Max’s will be offering a Chicken All-You-Can promo staring at noon. Diners may avail of unlimited Max’s fried chicken, soup of the day, soft drinks, and rice for P399.

For Mr. De Joya, people always go back to something that is familiar despite the barrage of innovations.

“The thing that really makes us so joyful about our own chicken is that it’s a recipe that has not changed since 1945. The chicken that was born from the kitchen of Maximo Jimenez is the same chicken we’re serving today, “ he said.

For more information about the Rewards Card and the Chicken All-You-Can promo, visit Max’s official Facebook page. — Michelle Anne P. Soliman

Google Station expands to over 400 PHL sites

GOOGLE’S free internet access program with partner PLDT, Inc. and Smart Communications, Inc. has expanded to more than 400 sites the past five months.

In a statement Wednesday, the tech giant said its Google Station program continues to increase in coverage since it was launched in the country in February.

“With our partnership with Smart, we aim to set up Google Station in more locations nationwide so Filipinos can connect to opportunities and benefit from the growing digital economy,” K Suri, Google director for Next Billion Users for Southeast Asia, was quoted in the statement as saying.

The company’s live stations are spread across transportation facilities such as airports in Manila, Clark and Davao and train lines such as the Light Rail Transit Line 2 and Metro Rail Transit Line 3. It is also present in several universities and colleges located in the provinces.

Google said it records an average of 1 million monthly active users on Google Station, with every user spending an average of 22 minutes per session connected to its free internet service.

Since Google Station allows users to connect for 30-minute sessions for an unlimited number of times a day, this data means the 22-minute average time a user spends in every session may be observed from several sessions in a day.

“We remain committed to serving the Filipino community with fast, free and open Wi-Fi so more people can join the millions of Filipinos already using Google Station… This is just the beginning,” Mr. Suri said.

The partnership with PLDT and Smart allowed Google to convert former Smart Free Wi-Fi stations into Google Stations.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Deutsche Bank suffers $3.5-billion quarterly loss

FRANKFURT — Deutsche Bank reported a bigger than forecast quarterly loss of €3.15 billion ($3.5 billion) because of major costs stemming from its efforts to reshape its business.

Deutsche Bank had earlier this month flagged it would lose around €2.8 billion in the quarter when it announced a restructuring plan that will see 18,000 jobs go and cost €7.4 billion overall.

The second-quarter loss compared with a profit €401 million a year earlier. The bank’s shares dropped 5% in early Frankfurt trading.

Deutsche, Germany’s largest lender, is considered one of the most important banks for the global financial system, along with US heavyweights JPMorgan Chase, Bank of America and Citigroup.

But Deutsche has been plagued by losses and scandal, prompting it to embark on one of the biggest overhauls to an investment bank since the aftermath of the financial crisis.

Chief Executive Officer Christian Sewing said on Wednesday that the bank had already taken significant steps in implementing the strategy. More than 900 employees had given notice or been told they would be made redundant.

In a note to employees, Sewing said that the lender’s underperforming investment bank faced “strong headwinds” in the quarter, including questions about the bank’s future that spooked clients.

“Now we can look ahead with more optimism,” he wrote.

TALE OF WOE
Deutsche’s troubles peaked with a $7.2 billion US fine in 2017 for its role in the mortgage market crisis, in a major blow that caused clients to flee.

A new leadership, with Sewing at the helm since last year, has tried to revive Deutsche’s fortunes, but problems have persisted.

In April the bank called off nearly six weeks of talks to merge with cross-town rival Commerzbank.

It then embarked on a plan for “tough cutbacks” to its investment bank, representing a major retreat from investment banking for Deutsche Bank, which for years had tried to compete as a major force on Wall Street.

As it reshapes, the bank now expects 2019 revenue to be lower than in 2018. The forecast marks a further scaling down in expectations from previous quarters.

Net revenue in the quarter fell 6% to €6.2 billion. Analysts on average had expected €6.3 billion in revenue, according to a consensus forecast posted on the bank’s website.

Revenue at Deutsche’s cash-cow bond-trading division dropped 4% in the quarter, while equities sales and trading revenue dived 32%.

The declines underscore the continued weakness at the lender’s investment bank, which saw an 18% drop in net revenues during the period.

Details of those plans were announced earlier this month. They include plans to scrap its global equities business and scale back its investment bank. It also reshuffled management.

The bank will set up a new so-called “bad bank” to wind down unwanted assets, with a value of €74 billion of risk-weighted assets.

Reuters reported on Tuesday that it will take years to shed those unwanted assets, tying up capital that could have generated income of €500 million a year.

Some investors have told Reuters they doubted these moves would be enough to turn around its flagging fortunes in the face of intense competition and low interest rates.

Others investors have said they were worried Deutsche Bank would backtrack on a pledge not to tap shareholders for additional cash, particularly in view of its capital constraints.

“I really can’t say that I see the positives in this plan. I remain a bitter curmudgeon,” said Barrington Pitt-Miller, portfolio manager at Janus Henderson Investors. — Reuters

Farmers earn more from YouTube than their crops amid tough times

IT’S A SIGN of the times when farmers make more money advocating for the industry on social media than actually farming.

Zach Johnson, who grows corn and soybeans in Minnesota, is known in YouTube circles as MN Millennial Farmer. It’s a role, he says, that’s provided him and his wife, Becky, about five times more in earnings than he can make on the family farm in the last year.

Johnson, 34, became a video blogger three years ago to advocate for growers and the technology they use. Now, he and Becky have about 300,000 subscribers and 50 million views under their belts. Their experience reflects both the depressed state of the rural economy and growing consumer interest in how food is produced.

“Yes, we use GMOs, we use pesticides, drain tiles and irrigation and there are real reasons why we use those things,” Johnson said in an interview. He describes his role as bringing balance to a discussion often dominated by critics of modern farming practices.

The Johnsons aren’t alone online. In rural communities across the US, YouTube, a unit of Google, is the most popular social media with 59% of people using it, according to a Pew Research Center survey in 2018.

Keith Good is the social media manager at the Farmdoc project at the University of Illinois, created to provide online data and analysis that will aid decision-making for farms under risk. Over the last year, he’s seen a dramatic increase in farmers posting more videos on social media.

“Farm organizations and commodity groups have encouraged producers to be part of the conversation on social media,” Good said.

Suzanne Cook, or WT Farm Girl, has racked up nearly 40,000 subscribers documenting her experience as a first-generation farmer, learning and failing in front of the camera.

Cook, who is 37, advocates for more women to get involved in farming. Many of her viewers are just learning about farming, just like her. Only about 10% of her viewers are women, she said, and they aren’t just youngsters.

“For a female, it’s even harder because most guys don’t take you seriously,” she said in a telephone interview. “YouTube has helped me because a lot of my subscribers are encouraging.”

Josh Draper, or Stoney Ridge Farmer, has more than 220,000 subscribers following his journey of building a first-generation cattle farm from an dilapidated tobacco plantation. As a US Air Force veteran, he advocates for more veterans to join farming. He also wants to show that he raises his animals “humanly and with respect.”

Draper decided to start blogging because “a lot of people are getting back to agriculture.” He bought a camera, did some honeybees videos, followed by a video of him sharpening his mower, and “it took off.”

The online videos produced by Zach and Becky Johnson sometimes present their information in the form of husband and wife chats. The subject matter can range from the use of a wide range of new technology to how they harvest their soybean test plot.

‘LOVE FARMING’
“I love agriculture, I love farming,” Zach Johnson said. “It’s my whole life, and it’s the life for all of my friends and family.”

Like many of the other bloggers, Johnson sells his own merchandise, does public speaking and features endorsements in his videos. That’s helped him generate profit additional to the ones he gains from YouTube ads.

“People have become so disconnected from agriculture,” Johnson said. “They’re curious about where their food comes from, and who the people that grow their food are. We have a really good opportunity to talk to people, discuss those things and show them why we do the things that we do.” — Bloomberg

Yellow Cab serving pizza slices

YELLOW CAB has just introduced the New York Famous XL Pizza Slice for P109. The New York Famous XL Pizza Slice — which has four variants: classic Margherita, Cheese, Hawaiian, and Pepperoni (photo) — comes from an 18” pizza. Pizza lovers can add P45 to get an ice-cold glass of Yellow Cab’s new House Blend Iced Tea to pair with the XL Pizza Slice. For more information, visit https://www.facebook.com/YellowCabPizzaOfficial/.

PLDT’s NCR subscribers to migrate to 8-digit landline numbers by October

PLDT, Inc. will be migrating to eight-digit landline numbers for subscribers in Metro Manila and nearby towns starting Oct. 6.

The telecommunications firm notified customers in a statement Wednesday that all landline numbers with the area code “02” will now include a “8.”

This means that for users in Metro Manila, Rizal Province, San Pedro, Laguna, and Bacoor, Cavite, landline numbers that used to be (02)123-4567 will become (02)8123-4567 by Oct. 6.

“We would like to encourage our subscribers in Metro Manila and other ‘02’ areas to start disseminating their updated numbers to their callers and updating their promotional materials such as business cards, websites, and social media,” PLDT Public Affairs Head Ramon R. Isberto said in the statement.

The transition is in compliance with Memorandum Circular No. 10-10-2017 of the National Telecommunications Commission, which required telecommunications entities to have an identifier for fixed-line numbers.

PLDT said the new landline numbers would be rolled out from midnight to 5:00 a.m. on Oct. 6.

Globe Telecom, Inc., another provider of landline numbers, is also required to migrate to an 8-digit number by the Oct. 6 deadline of the government.

The Ayala-led firm was assigned the number “7” as its identifier, meaning landline users of Globe with an area code of “02” would change contact numbers from 02)123-4567 to (02)7123-4567.

Both telecommunications firms committed to reach out to its subscribers on the upcoming change in its systems.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Australia’s bank watchdog raps Macquarie, HSBC, Rabobank for liquidity report breach

SYDNEY — Australia’s banking regulator said on Wednesday it has ordered Macquarie Group Ltd. and the domestic units of Rabobank and HSBC to tighten their local funding arrangements, saying the banks had breached liquidity reporting requirements.

Following recent promises to take a tougher stance toward the banks it regulates, the Australian Prudential Regulation Authority (APRA) broke its tradition of not publicly naming entities, and said the three banks were “improperly reporting the stability of the funding they received from other entities within the group.”

The regulator said the banks had provisions in their funding agreements that would potentially allow the group funding to be withdrawn in a stress scenario, undermining the stability of the Australian units.

The “reporting of their intra-group funding as stable has been in breach” of regulatory standards, APRA said.

“APRA is requiring these banks to strengthen intra-group agreements to ensure term funding cannot be withdrawn in a financial stress scenario,” APRA said. The regulator was “considering a range of further options, including the imposition of higher funding and liquidity requirements.”

APRA gave no further details of the required strengthening, but did say it would require the lenders to re-state past funding and liquidity ratios.

Macquarie said intra-group loans to its banking unit represented up to 15% of its bank’s total funding, the repayment of which could be accelerated due to a “material adverse change” (MAC) clause that existed since 2007.

That clause had now been removed, and the bank would re-calculate its liquidity ratios back to 2017, to reflect the previous clauses, Macquarie said.

“It is likely that (Macquarie Bank’s) recalculated liquidity coverage ratios will show a historical non-compliance,” the firm said. It said if the unit had been “aware of APRA’s interpretation of the MAC clause, they would have removed the clause earlier”.

In a statement, HSBC said it maintained a strong liquidity and funding position, without elaborating on what led APRA to say the lender had improperly reported its liquidity ratios.

Rabobank said it was working with the regulator to address its concerns, and would amend its funding agreements with its parent.

APRA said there was no immediate threat to the stability of the three lenders.

Australia’s banks are facing tougher scrutiny in the wake of a sweeping public inquiry into the financial sector that revealed widespread wrongdoing and lax regulatory oversight.

The central bank in neighboring New Zealand, APRA’s regulatory counterpart in that country, has flagged lifting bank capital requirements and has also censured the largest lender in its market, Australia and New Zealand Banking Group Ltd., over risk-capital failures. — Reuters

How PSEi member stocks performed — July 24, 2019

Here’s a quick glance at how PSEi stocks fared on Wednesday, July 24, 2019.

 

How does the Philippines fare as a potential location for offshore services?

How does the Philippines fare as a potential location for offshore services?

NEDA says security of tenure bill requires more ‘balance’

THE National Economic and Development Authority (NEDA) said Senate Bill 1826, the proposed Security of Tenure (SoT) Act, needs to be “tweaked” to be more balanced and consider the possible impact on investment.

In a briefing Wednesday, NEDA Secretary Ernesto M. Pernia said, “Our view is that the legislation should do something that would benefit not only the employers but also the workers.”

He added, “I think the SoT is not perfect. Also from the employee side, they said it’s not adequate.”

The SoT Bill is awaiting the signature of President Rodrigo R. Duterte and is set to lapse into law by July 27. According to Labor Secretary Silvestre H. Bello III, Mr. Duterte is still studying the measure.

Mr. Pernia said that the SoT Bill should be balanced, considering the interests of workers as well as the potential impact on investment and jobs to be generated by businesses. “Essentially there is a need for tweaking to address some of the provisions. As I’ve said, you have to be sure that the law benefits not only workers but also investment… it has to be fair between workers and employers because if you want jobs to be available, you need investment.”

On July 17, foreign business chambers and employer groups called on the President not to sign the SoT Bill, warning that it will weaken investment if businesses are not given the option of engaging contract labor. The groups said that current laws already have provisions against labor-only contracting which are also reinforced through Department Order 178 series of 2017 issued by the Department of Labor and Employment (DoLE) and Executive Order 51 series of 2018 signed by the President.

The Trade Union Congress of the Philippines (TUCP) warned foreign chambers that they are committing a crime in calling on the President to veto the SoT Bill, because they are not registered lobbyists and cannot interfere in domestic matters.

In a statement Wednesday, TUCP President Raymond C. Mendoza said: “The Trade Union Congress of the Philippines warns foreign businessmen and their chambers that they are engaged in illegal lobby(ing) in calling for a Presidential veto of the Security of Tenure bill. They are engaged in an unwarranted interference in the purely domestic affairs of the Filipino people. They are also infringing into our sovereignty.”

He added that foreign organizations cannot lobby Congress, saying that the foreign chambers “are now skirting a thin line between legality and real crimes against the Filipino people.”

Mr. Mendoza said that the SoT Bill allows flexibility since some contracting activities such as seasonal and project-based contracting will still be legal. The bill will also ensure workers’ right to a pathway to permanent employment.

He added, “While the SoT bill does not totally end contractualization, it nonetheless provides for an easier way to… regularize workers. It also provides penalties and a fine of up to P5 million and sanctions which include closing down manpower agencies and contractors. We intend to further strengthen this through amendments in the 18th Congress by reiterating the lost provisions of the House version, which prohibits all fixed-term contracts.” — Gillian M. Cortez

Gov’t to proceed immediately with 5th round of SSL pay hikes

FINANCE Secretary Carlos G. Dominguez III said the government will proceed immediately with the fifth round of adjustments to public servants’ salaries under the Salary Standardization Law, adding that the Department of Finance (DoF) will file legislation soon instead of observing the usual interval between adjustments.

“Normally, we would have waited three or four years before moving up to SSL 5 (Salary Standardization Law round 5). However… President [Rodrigo R. Duterte] has decided (to) propose SSL 5 and that will be legislated,” Mr. Dominguez told reporters Tuesday at the DoF.

He said that the DoF and Officer-in-Charge Janet B. Abuel of the Department of Budget and Management (DBM) have come up with initial estimates and described the salary adjustments as “affordable.”

“We are down the very last numbers as will be proposed for the legislation and we can afford it. And that’s over three years… The initial estimates that we made together with Secretary Abuel were that well within our affordable range,” he said.

He did not provide an estimate for the expected cost of SSL 5.

Mr. Dominguez believes SSL 5 is best pursued via Congress rather than executive order. SSL 4 was authorized under Executive Order (EO) No. 201 issued by Former President Benigno .C. Aquino III in 2016.

“[When the bill is passed] depends on the legislation. It has been filed, I believe, [but] I’m not sure. But I heard it was going to be filed very quickly,” he added.

Earlier this year, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno announced that the latest tranche of the salary adjustments was scheduled for early this year but was delayed by the Budget impasse in Congress.

Despite the delay, President Duterte signed EO no. 76, amending EO no. 201, on March 15 for the last tranche of SSL 4. The issued EO no. 76 authorized funding for the fourth tranche of the salary hike for government workers to be funded by any available appropriations from the reenacted 2018 budget.

On the bills proposing the creation of dedicated departments for Overseas Filipino Workers (OFW), fisheries, and disaster response, Mr. Dominguez said that such moves will quire many existing agencies to be re-organized and integrated.

“You just re-organize (the agencies) and call (them) something else. But I have to wait for the legislation because they have to be the one (to decide) which will go together… but most likely they will just start with what’s already existing,” Mr. Dominguez said.

He also said that the main cost expected for the new departments will involve upgrading current offices, a cost which he described as not “very high.”

The President at his State of the Nation Address Monday called for the creation of the Department of Overseas Filipino Workers and Foreign Employment, the Department of Water Resources and the Department of Disaster Resilience. — Beatrice M. Laforga

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