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Inspiration from the outdoors and lessons from a National Artist

ARTIST Ivan Acuña stands in front of one of his massive works at the New World Hotel in Malate, Manila.

PAINTINGS by National Artists Arturo Luz, Fernando Amorsolo, and Benedicto “BenCab” Cabrera hang on the walls along the entrance hallway of Ivan Acuña’s apartment in Mandaluyong. In his living room, more of his painting collection is stacked on the floor. Across them are pieces of Chinese porcelain displayed above cabinets against the window. The collection of paintings and cityscape view from his apartment are where he draws inspiration for his own abstract paintings.

WEEKENDS WITH JOYA
Mr. Acuña’s exposure to the visual arts began as a child when he made friends with his neighbor, Alex Baldovino, who happened to be a nephew of National Artist for Visual Arts Jose Joya.

From the first grade onwards, he and Alex would visit Mr. Joya in his studio on weekends to observe the late painter while he worked.

Mr. Acuña recalled that Mr. Joya would order 3M Pizza along with Fress Gusto root beer soda for them as they sat quietly to watch him work. “That’s where I started to accumulate the techniques and styles. Eventually, I grew to like abstract,” Mr. Acuña told BusinessWorld in an interview on June 14 in Mandaluyong city.

ON ABSTRACTS
As an abstract expressionist who took note of the techniques of a National Artist, he adapted Joya’s impasto painting style or the application of thick paste to create texture.

“There no plan. From a white blank canvas to a heavy impasto colored canvas,” he said of his creative process.

He draws most of his inspiration from the outdoors, citing walls of old buildings, and old cities as scenes with “a lot of character.”

Mr. Acuña pursued a degree in Fine Arts at the University of the Philippines. In the 1990s, he attended art workshops in Brisbane, Australia. His notable exhibits include one at Prestige Motors BMW in Makati in 2004.

Since then, Mr. Acuña has specialized on beautification of spaces.

As an artist, he prefers to collaborate with designers, architects, and real estate developers rather than hold exhibits in galleries. His paintings are often collaborations with interior designers Budgi Layug and Anton Mendoza, and architect Gil Cosculuela.

“It has something to do with my photography,” he said, stating that he began his career as an interior photographer before trading the camera for the canvas and paint brush.

ACCIDENTAL PAINTING
One of his memorable works with which he noted the use of an “accidental technique” was his a canvas in his Metalscape series of 2006.

Sometime in the 2000s, he had to travel from Baguio (where he was based at the time) to Manila to show a sample painting for a hotel. He was driving a pickup and placed the painting at the back of the vehicle. The artwork only needed a final layer which he planned to finish in Manila. “But what happened was, the canvas fell on the road in Pangasinan. After more than a kilometer, somebody noticed that the canvas fell [off],” he recalled.

Pag kita ko, napunit (when I saw it, there was a tear on the canvas). But I had no time. When I reached Manila, I had to present it.” He had to quickly cover the torn portion with thick impasto.

Mr. Acuña showed this writer a photo of the artwork on his phone. The gold canvas had a straight cut off on one side. When his client saw the work he said, “Fantastic!”

The canvas is on view on a wall above the escalators at the lobby of New World Manila Bay Hotel.

“Basically with abstract, wala naman figure ’yun eh (There is no figure in it). So you have to let your audience feel [it] and call their attention,” he said.

Mr. Acuña’s ongoing series — titled Metalscape and Hamilo Coast — are distinguished by the use of gold paint and a combination of bold color accents.

Falling off a pick-up truck is not part of their creation. For more information on the artist and his works, visit https://www.facebook.com/ivanacunapaintings/. — Michelle Anne P. Soliman

Landlords are big winners as the Philippines bets on continued Chinese gaming boom

MANILA — Tessie, her husband and their adult son recently vacated their home of 37 years in a Manila suburb to make way for some unfamiliar tenants — 20 Chinese nationals.

It wasn’t an easy decision to let out their 5-bedroom home, but for P140,000 ($2,730) a month in rent — nearly three times the norm in their middle-class neighborhood — it was an offer too good to refuse, said Tessie. She declined to be identified by her full name.

Like Tessie, many Filipino landlords are laying out welcome mats for the surging number of Chinese coming to Manila to work in online gaming companies taking sports and casino bets, undeterred by simmering anti-China sentiment and a common perception that Chinese are taking Filipino jobs.

“I was afraid at first because I heard so many bad things abut Chinese tenants but I was convinced later on when my friends told me they were doing the same,” said Tessie.

“It’s benefiting people like me who need to earn,” said the 63-year-old housewife.

Her home is close to a two-tower office building where five of the nine floors are used by Chinese gaming firms. A Chinese restaurant and Chinese tea shop downstairs do brisk trade.

Such arrangements are now commonplace across the business hubs of Manila, where Chinese gaming firms are capitalizing on the Philippines’ liberal gaming environment and an insatiable appetite for gambling in China, which forbids all types of betting.

The influx started in 2016, coinciding with the rise of Philippine President Rodrigo Duterte, who since coming into power has pursued warmer ties with China, and the gaming regulator’s move to license these internet gambling operators.

The number of Chinese work permit holders nearly quadrupled in two years to 109,222 in 2018, government data showed, making China the biggest source of expatriate workers in the Philippines.

In comparison, there were 4,477 work permit holders from Japan and 622 from the US last year.

The arrival of Philippine offshore gaming operators, better known as POGOs, has become a major boon for the property market just as it was getting crimped by a slowdown in the country’s $24-billion outsourcing sector.

“POGOs came in and saved the office market,” said Dom Fredrick Andaya, a director at Colliers International Philippines. “We would have had double-digit vacancy rates by 2017 if POGOs did not come.”

Philippine gaming regulators have so far licensed 56 POGOs from 35 in 2016. They have also accredited 204 gaming support providers that market their products and render customer service to players abroad, among other services.

Reuters requested comment from at least two POGOs whose contact details were available online but they did not respond. Reuters also visited at least one gaming tenant in a building in the main Makati business district but was denied entry.

POGOs will likely take up 1 million square meters of office space in Manila by yearend, Mr. Andaya said, nearly 12 times more than in the last quarter of 2016.

Office rents in the Manila Bay area, which has the highest concentration of POGOs, have risen as much as 150% over the past two years, with some renting up for P1,500 per square meter, Mr. Andaya said, comparable to rents in Makati.

Alongside, the influx of Chinese workers has fueled a surge in demand for residential space, lifting condominium and housing rents by as much as 50% in areas where POGOs operate, said Pronove Tai International Property Consultants.

“The sales market increased with investors buying bulk units…which they lease to Chinese companies as staff housing,” Pronove Tai said.

Chinese accounted for close to 50% of local developers’ foreign sales, Colliers said, helping drive residential property prices higher.

Shop signs and names of restaurants, spas and pharmacies in Mandarin have become increasingly common around the capital, and many retail stores are now using Chinese digital payment apps WeChat Pay and AliPay.

But lawmakers are growingly worried that the rising number of Chinese workers could lead to local strife and increase the competition for jobs when 2.29 million Filipinos are unemployed.

The issue is being compounded by the arrest of hundreds of undocumented Chinese workers in illegal online gambling outfits and construction sites and the discovery by authorities that some of these entities have not been paying correct taxes.

But Mr. Duterte has called for tolerance.

“The Chinese, let them work here. Let them be. Why? We have 300,000 Filipinos in China. That’s why I can’t just say, leave, or have them deported. What if they make all the 300,000 (Filipinos) leave,” Mr. Duterte said in a speech in February.

Filipino businessman JP Gaspar, who is renting out his family’s four-bedroom home to Chinese nationals for P100,000 a month, said he is aware the country’s embrace of China may not last longer than Duterte’s six-year term in office.

“In the meantime, I’ll grab the opportunity,” Mr. Gaspar said. — Reuters

Gov’t makes full award of 3-year T-bonds

THE GOVERNMENT fully awarded the fresh three-year Treasury bonds (T-bond) it offered on Tuesday on the back of strong demand from the market due to additional liquidity from recent cuts to banks’ reserve requirement ratio (RRR).

At its first auction for the quarter, the Bureau of the Treasury (BTr) raised P20 billion as planned from its offer of fresh three-year bonds maturing on July 4, 2022.

Total tenders reached P65.911 billion, more than thrice the government’s offer.

The bonds, which carry a coupon rate of 4.75%, fetched an average rate of 4.803% at yesterday’s auction, 33.3 basis points (bp) lower than the average rate of 5.136% for the three-year T-bonds awarded last Aug. 29.

At the secondary market on Tuesday, the three-year bonds fetched a rate of 4.953%.

“We had a very healthy auction today given that more than the three times oversubscribed we received offers of P65 billion. See also na yung (There was a) decline in the rates given that first, last June 28, may (there was an) additional 50 bps [cut to banks’ reserves]…and then…there will be another cut end of July, the other 50 bps,” National Treasurer Rosalia V. De Leon told reporters after the auction on Tuesday.

“And of course the consensus on inflation for June would be around 2.9%, 2.8%. So given all these considerations, the bids came in much lower than even the secondaries and from there, it’s about 33 bps lower than the previous auction,” Ms. De Leon said.

After a 100-bp RRR cut across all banks last May 31, the Bangko Sentral ng Pilipinas (BSP) trimmed the reserve ratios of universal and commercial lenders and thrift banks by another 50 bps last Friday to 16.5% and 6.5%, respectively.

Another 50-bp reduction will be implemented on July 26 to finally bring the RRR of big banks to 16% and thrift banks to 6%, which completes the phased cuts the BSP announced in May.

Meanwhile, inflation likely eased anew last month due to declines in food and fuel prices following a surprise uptick in May, according to a BusinessWorld poll.

A poll among 12 economists yielded a 2.9% estimate median for June inflation, close to the ceiling of the BSP’s 2.2-3.0% range for the same month. If realized, this would match December 2017’s pace and would be the slowest since the 2.6% clocked in August the same year. It also compares to actual inflation of 3.2% in May and 5.2% in June last year.

The Philippine Statistics Authority is scheduled to report official June inflation data on July 5.

“The market continued to show preference on short-end sector of the curve, given the sustained perspective for moderating inflation. Dealers and investors may also be putting their excess liquidity to good use, thanks to the second tranche of the RRR cut which took effect last June 28,” Robinsons Bank Corp. peso sovereign debt trader Kevin S. Palma said.

The government plans to borrow P230 billion from the local market from July to September, broken down into P60 billion in Treasury bills and P140 billion in T-bonds.

SAMURAI BONDS
Meanwhile, Ms. De Leon said the government is still looking to sell as much as $1 billion in yen-denominated bonds given strong appetite from Japanese investors.

“We also saw strong appetite of Japanese investors for the issue because there would really be a strong pickup coming from where current benchmarks right now in the samurai market. In terms of the schedule, we still have to do several like market-sounding,” Ms. De Leon said.

“They are very bullish on the Philippines coming from the S&P [Global Ratings] upgrade, obviously, and they would also see the liquidity in the market… If we are going to do more frequent issuances, then we can also be in the index for samurai bonds,” Ms. De Leon added, noting that the country has to maintain its presence in the yen bond market.

Last April, S&P Global Ratings raised the Philippines’ credit rating by one notch to “BBB+” from “BBB” with a stable outlook, citing above-average growth and strong external and fiscal position which have boosted the country’s economic profile.

Ms. De Leon said the government has to assess developments in the samurai market to determine whether or not to proceed with the bond sale.

“We have to watch market developments, benchmark rates, also from our arrangers. We have to find out the feedback from the investors that we saw during the NDR (non-deal road show).”

The government 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. Of the amount, 75% will be sourced domestically while the balance will be from foreign creditors. — R.J.N. Ignacio

It’s an even (equal) match: A fighting gay wrestler

By Joseph L. Garcia, Reporter

TO THE beat of pumping pop music, Martivo’s name appears on the screen, dressed up in rainbow shades and leopard prints. In glittery pink shorts, a coat with a pink bow, and rainbow-printed socks, Martivo steps out on the runway. Martivo isn’t a model. He’s not here to play; he’s here to fight, and he wins. He’s out, loud, and proud — and he can beat you up.

Martivo is the wrestling persona adopted by Earl Santinni Lagman for Philippine Wrestling Revolution (PWR). Martivo (or Man Doll, as he’s sometimes called) was up for an All-Out Warla match with fellow wrestler Kapitan Juan Tutan.

Martivo twerked for a bit before appearing in the wrestling ring, while a rainbow Pride flag waved behind him. He took the flag and waved it himself while perched on one of the ring’s posts, to the cheers of the crowd. As for the match itself, well: Martivo showed Kap Tutan. Several jokes about the male anatomy were thrown about, with the use of vegetables as props. Martivo eventually whacked a gourd on Kap Tutan’s head, and the various props included a pipe, Kap Tutan’s baseball bat, thumbtacks, a riding crop, and pink feathers. After a raucous match, Martivo came out as the All-Out Warla Champion, holding for himself a silver belt decorated with pink feathers.

Martivo made an appearance in the ring for a second time last Sunday with fellow champions (for different titles) Quatro and Chino Guinto, declaring, “I am now here to prove to everyone that I am the best champion that PWR has. Not just for one month but for 365 days: day-in and day-out, baby!”

FEMALE WRESTLING FAN
After the match, BusinessWorld sat down with Mr. Lagman, sweaty and chugging water and Coca-Cola. Fans approached him and asked for a photo, while thanking him profusely for a good show.

“I honestly can’t remember,” said Mr. Lagman when asked when he started to like wrestling. He does remember that the most memorable were the Diva matches for World Wrestling Entertainment (WWE). Fans remember the names Trish Stratus and Lita, and older fans would recall the appearance of Fabulous Moolah, who became the first WWF Women’s Champion in the 1980s.

“I feel like it’s out of the norm,” he said about his fascination with female wrestling. “When you see men going at it, it’s expected. But when you see women going at it, like [doing] stuff you don’t really expect women to do… I was blown away.”

Mr. Lagman has identified as gay since he was in high school, spending years in an all-boys school. “That’s when I realized that, hey, you know what, I think am gay.”

Members of the gay community are usually stereotyped as theatrical and lovers of the performing arts. Looking at some of the elements of professional wrestling, it’s similar to a drag performance, albeit plugged with gallons of testosterone. “It’s pretty much the same thing. We play a different character. At the end of the day, you go home and take off your gear, your makeup, your whatnot, and just be the real you,” said Mr. Lagman.

Wrestling is traditionally a masculine sport — a hypermasculine sport, even — with muscle-bound men yelling in deep, guttural voices and beating each other up as in a schoolyard. Mr. Lagman injects his own camp flavor to this manly jungle, and saying, “When I started out in PWR, I honestly never felt like I was not treated equally.”

PLAYING UP THE CAMP
He came up with the character during PWR’s bootcamp, where prospective wrestlers are trained. They were all tasked to come up with a gimmicky persona, and Mr. Lagman came up first with an everyman from the audience who would take up a wrestler’s challenge from the ring. The PWR team shrugged off the idea, and Mr. Lagman came up with the Martivo persona. “I’m just going to use the real me to my advantage.”

Mr. Lagman says that he faced no discrimination at all while training with the masculine roster.

Mr. Lagman says that the Martivo persona has at least three more times as much camp in it than his real self. Unlike in other male-dominated areas, where gay men are usually told to tone it down a bit, the team urged Martivo to amp up the camp for wrestling.

“I was probably a little too manly when I started training,” he said. Martivo’s moves include the Pak! Ganewrn! chops, the Ka-Vogue Kick, and several moves that get an opponent’s face to his butt (demonstrated during his match with Kap Tutan).

SUBVERTING STEREOTYPES
There are certain expectations to be fulfilled as an athlete, that is, to make a body perform at its peak, all the time. The stereotype of gay men as weak and unathletic is subverted by Mr. Lagman, and, of course, the pressure is on him to prove the stereotype wrong; not just for him, but for his audience.

“All the time. Every single match — that’s my dilemma. I don’t want people to think that since I’m gay, I’m an inferior athlete.”

The sports world is usually dominated by cisgender heterosexual individuals, and even straight women in the sports world have to fight for a certain visibility. LGBTQ people in the athletic world, therefore, are at an even greater disadvantage when it comes to visibility and inclusion. A few players have come out: there’s Jason Collins from the NBA and David Kopay from the NFL, among a few others. Gay men in the athletic world are then seen mostly as tokens, the lone queer person on a team. Martivo is the only openly gay wrestler in PWR so far. He said, “There should be definitely be room for more. We shouldn’t be taken as tokens. I would like to think that I am as athletic as the rest of the roster.

“There’s room for you — plenty of room for us.”

Waving the Pride flag during Pride Month, on a stage surrounded by people who cheered him on, Mr. Lagman said, “Being given the platform to tell the world — or the universe rather (taking a line from Miss Universe Pia Wurtzbach) — that I am for equality for everyone, ‘Love Wins’ and all that… that’s the best part.”

Asked what he feels when he’s in the ring, he said, “Oh my God. I am the proudest.”

“I want people to think that if I can do it, anybody else can. Whatever a straight man or a straight woman can do, everybody else in between can do, if not better.”

Watch out for updates in PWR’s monthly shows at https://web.facebook.com/PHWrestlingRevo/.

Converge partners with Baguio electric coop

CONVERGE ICT Solutions, Inc. is tapping a Baguio-based electric cooperative to expand its operations in the northern Luzon province.

The fiber internet provider said in a statement Tuesday it recently signed a partnership deal with Benguet Electric Cooperative, Inc. (BENECO) to reach more areas in Baguio.

“Converge ICT has always wanted to provide a faster and more reliable connection in the northern part of Luzon… It is the first electric cooperative to enter into a partnership with a company such as Converge in order to provide internet to its member-consumers,” the company said.

Converge ICT started operating in Baguio last year and has kicked off the process of expanding its presence in the area in the first half of the year.

The partnership is expected to help extend Converge ICT’s coverage in Baguio as it aims to benefit from BENECO’s expertise in laying down fiber optics in the mountainous areas of the province.

“The combined expertise of Converge ICT’s technical team and BENECO’s familiarity with the terrain made the work more manageable,” it said.

Converge ICT said its expanded services in Baguio will be available in the coming months.

“Customers in Baguio have long been waiting for an alternative internet provider that can give them a better service. Converge ICT’s partnership with BENECO is equitable…because BENECO’s electric poles are infrastructure-ready for use, which means that we can easily fast track the expansion,” Jesus C. Romero, the company’s chief operating officer, said in the statement. — Denise A. Valdez

PSBank starts offer of peso bonds

PHILIPPINE Savings Bank has started its maiden offer of fixed-rate peso bonds.

PHILIPPINE SAVINGS BANK (PSBank) is looking to raise P3 billion via two-year bonds to diversify its funding sources and expand its consumer business.

In a regulatory filing on Tuesday, the thrift lending arm of the Metropolitan Bank & Trust Co. (Metrobank) Group announced its maiden peso-denominated fixed-rate bond offer from July 1-17 through which it wants to raise at least P3 billion.

The two-year bonds were priced at 5.6% per annum to be paid quarterly until 2021.

The notes require a minimum investment of P500,000 and in increments of P100,000 thereafter.

The bank announced in March it will offer fixed-rate peso bonds amounting to P40 billion, which will be offered in multiple tranches.

“We have always been on the lookout for opportunities to diversify our funding sources,” PSBank President and Chief Executive Officer Jose Vicente L. Alde said in the statement.

“Given market developments, we believe that this bond issuance is properly timed to provide potential institutional and individual investors with an alternative investment to lock-in their funds at a higher rate yield and for a relatively shorter tenor.”

He added that proceeds from the fund-raising activity will be used to support the lender’s consumer business to provide innovative banking solutions and services.

The two-year bonds will be issued and listed on the Philippine Dealing and Exchange Corp. on July 24.

Standard Chartered was tapped to be the sole arranger of the transaction. It also serves as a selling agent alongside PSBank, Metrobank and First Metro Investment Corp.

The thrift lender has been active in the capital markets recently. In January, the bank raised P8 billion via stock rights offer, selling 142.9 million common shares priced at P56 apiece during Jan. 7-11 offer period.

PSBank also raised P5 billion and P3 billion last year by offering long-term negotiable certificates of deposit an medium-term fixed rate notes, respectively.

The lender booked a P680.7-million net income in the first quarter, up 10.3% from the same period in 2018, driven by interest income growth and expense management.

Local debt watcher Philippine Ratings Services Corp. affirmed its PRS Aaa (corp.) issuer rating on PSBank last month, indicating continued growth in core interest income and strong market position.

MEANINGFUL BANKING
Meanwhile, PSBank’s parent firm Metrobank launched yesterday its “Meaningful Banking” communication campaign to signal commitment to serve the evolving needs of its clients.

“Meaningful Banking is Metrobank’s north star as we start on a transformation journey,” Metrobank President Fabian S. Dee said in a press conference Tuesday. “Even we are not yet able to serve them perfectly now, we commit to continuously improve so that we can deliver meaningful banking every step of the way.”

In the near future, Metrobank said it targets to offer new and more relevant products and services to help fulfill their clients’ needs. — Karl Angelo N. Vidal

2 great LGBT travel destinations that might surprise you

At Bloomberg Pursuits, we love to travel. And we always want to make sure we’re doing it right. So we’re talking to globe-trotters in all of our luxury fields — food, wine, fashion, cars, real estate — to learn about their high-end hacks, tips, and off-the-wall experiences. These are the Distinguished Travel Hackers.

AMIT PALEY, 37, is head of the Trevor Project, a charity that focuses on at-risk LGBTQ youth. This year the group was one of the five grand marshals for New York’s Pride March, which celebrated the 50th anniversary of the Stonewall uprising in addition to welcoming WorldPride to America for the first time.

Before taking his current position, however, Paley logged stints as a McKinsey consultant and a journalist with the Washington Post, where his roles included working as a foreign correspondent based at the newspaper’s Baghdad bureau; his work there was nominated for a Pulitzer Prize.

His favorite airline is United. “They are actually a huge supporter of the Trevor Project, and they just announced nonbinary-gender booking options. So if you don’t identify as Mr. or Ms., you can identify as Mx., which is a pretty progressive thing to do,” Paley says. He flies about 150,000 miles per year, between his offices in Washington, D.C., Los Angeles, and New York; to his fiancé’s hometown of Toronto; and internationally.

Paley and his fiancé, Jonathan, live in New York City.

IN EXTREME TRAVEL SITUATIONS, THINK LOCAL.
“The most important thing I did in a war zone to keep myself safe was to surround myself with people who were local and so had a much better sense [of the situation] than I did. In Iraq, for example, there were a number of people who essentially hired mercenaries from other countries. But at the Washington Post we did not do that — all our security were local Iraqis. There is no substitute for talking to people who actually live in that community, about what their advice and tips would be. That really applies to anywhere you travel in the world.”

DON’T JUST PACK AN ADAPTER — ADD THIS GIZMO TO YOUR TRAVEL ARSENAL, TOO.
“I always try to take multiple chargers, as I have so many devices. But when I was in Iraq, I bought an office extension cord — I forget how long it was, but it felt like it was 100 yards. You could plug it in anywhere. So if you wanted to plug something in to charge it but didn’t want to leave an expensive device somewhere far away, I could use that really long cord. In a hotel context, when I was backpacking in Southeast Asia, the hostel room could meander in weird ways, and I could use that then, too.”

AS A WAR CORRESPONDENT HE UNEARTHED UNLIKELY VACATION DESTINATIONS, LIKE THIS CORNER OF IRAQ.
“I spent time in the Kurdistan region of northern Iraq when I was a reporter, and it was a beautiful mountainous area that seemed a world apart from the war-ravaged parts of the country in the south. Actually, it’s relatively safe, and Erbil, for example, is an interesting city to visit. Just walking down the streets you can get a sense of the history there. I wouldn’t be surprised if, in 20 years, it’s visited as much as parts of Southeast Asia that were previously off-limits.”

IF YOU WANT TO PACK EVEN LIGHTER, BORROW ESSENTIALS FROM YOUR HOTEL.
“At the start of my time at McKinsey, I traveled an enormous amount, and I would travel sometimes to the same city every single week for months at a time. When I stayed at the same hotel, I realized they actually had things that I did not need to bring with me, that they would just loan me. For instance, at the Westin Pittsburgh, where I stayed all the time, guests can get a gym pack of shirts, shorts, and socks from the hotel.

ONE LGBTQ DESTINATION THAT MIGHT SURPRISE YOU…
“I love Venice, especially the hotel Ca’ Maria Adele. It has personal importance to me, because it’s where I got engaged to my fiancé. I planned a surprise trip, told him we were going somewhere but didn’t tell him where, then proposed in a gondola. The gondolier that we had was this very, very gruff machismo kind of gondolier, so I was a little nervous about what his reaction would be when I proposed. But he almost kind of shrieked congratulations and wanted to take a million pictures of us. He was such a sweetheart about it. And one more entry in the, you know, don’t judge a book by its cover.”

AND ANOTHER…
“Tel Aviv. My mother is Israeli, and I grew up going to Israel every summer, and to Tel Aviv all the time. But I had never heard anyone in Israel ever talk about LGBTQ people, and I was not out until the end of college. So as an out person, to come back with my fiancé and see how accepting and supportive this city is, it was really inspiring. I wish the younger version of me had known it was such a surprising beacon for LGBTQ people. Almost anywhere you go on the beach in Tel Aviv, I think, you can see them. And there are so many great bars and clubs — I love Shpagat.”

ON HIS POST-GRADUATION CROSS-COUNTRY ROAD TRIP, TWO STATES STOOD OUT — FOR VERY DIFFERENT REASONS.
“After I graduated from school, I had four or five months before I was starting my new job, so I wanted to do a big road trip across the US. The two most surprising things I learned: Utah is the most beautiful state in the union by far, bar none, which I was not expecting. The different parks all look like you’re on a different planet. And I didn’t book hotels ahead of time, just found places the night of. And that worked fine in every place, except one state, the one I would’ve least expected: North Dakota. I literally could not find a place to sleep in the entire state. At that time there was an energy boom in North Dakota, and they had seasonal workers, so they were occupying literally every room. So don’t think that because somewhere is an unpopulated area, or not a heavy tourist destination, that there aren’t other people traveling who might book up every hotel room that exists.”

WORRIED ABOUT MISSING A FLIGHT? BOOK A BACKUP SEAT.
“I used to get to the airport very, very early, but when I started taking 6 a.m. flights to Pittsburgh, that changed. I made a calculation of what the very, very latest I could arrive would be and added 15 minutes of buffer time. I’ve missed flights less times than I can count on a hand. And someone told me this tip: Every single flight they take, they always book a second flight, just in case they miss the first one. It’s expensive, he said, but he always gets to where he’s going on time. At McKinsey, too, if there was ever bad weather, we would book multiple flights in case the one we were on was canceled. If you book an expensive, refundable second seat like that, you can actually cancel it [for free] if you don’t need it. Obviously, that’s a very expensive option, and we work at a nonprofit, so we don’t do that here.” — Bloomberg

What happens when you unexpectedly buy that $20 million painting

PETER DOIG’s The Architect’s Home in the Ravine — SOTHEBY’S

JUST 15 months after Peter Doig’s The Architect’s Home in the Ravine fetched $20 million at Sotheby’s, the landscape was back on the market.

Displayed at the Gagosian booth at Art Basel with an asking price of $25 million, it was one of the most expensive works at the world’s top modern and contemporary art fair last month.

The painting, which has been sold so often one dealer calls it a “frequent flier,” last appeared at Sotheby’s in March 2018 in London, where the auction house used an increasingly common financing technique to reduce its risk. In exchange for a fee of about $1 million, client Abdallah Chatila made an irrevocable bid that ensured the work would sell. No one made a higher offer, and he ended up taking it home.

“It sold twice for the world record for the artist and I believed it would set the record for the third time,” Chatila, 44, a Geneva-based investor, said in a phone interview. “I ended up with it.”

Such outcomes have become more common in the past year as auction houses increasingly turn to third-party investors to place prearranged bids in exchange for a share of the profit from the sale. Expensive works that ended up with their backers include Andy Warhol’s Double Elvis [Ferus Type], which went for $53 million at Christie’s in May, and Jean-Michel Basquiat’s Pollo Frito, bought by the guarantor for $25.7 million in November at Sotheby’s.

‘EASY MONEY’
“When the market is going up an up and up, easy money was made on guarantees,” said Thomas Danziger, a partner at Danziger, Danziger & Muro. “Now that the market is not as robust, people end up being the proud owners of the works they didn’t expect to own.”

And like the Doig landscape at Art Basel, which has been offered at auction five times since 2002, an increasing number of works are making the round trip for resale, Danziger said.

A painting of a carpet by Rudolf Stingel, which fetched about $3 million at Christie’s in Hong Kong in 2017, was listed on Sotheby’s website as part of its June 26 contemporary art sale in London. It was estimated at $1.5 million to $2.3 million.

A Christopher Wool painting, spelling the word “FOOL” in big capital letters, which was bought by a guarantor for $14.2 million at Christie’s in 2014, sold in May for $14 million at Sotheby’s.

Lower prices for resales are not uncommon.

‘ONLY BIDDER’
“If these pictures return to the market very soon, people realize that the value is not what the auction prices reflect,” Danziger said. “It’s not a competitive situation. Someone made a bet and ended up being the only bidder.”

For seasoned collectors, guarantees used to be a sure way to get a good deal. They either got the work they wanted at a slightly reduced price, or they received a fee if the painting sold to someone else.

“Guarantees are brilliant if you want to own the work,” said Gabriela Palmieri, who advises collectors, including the Berkowitz Contemporary Foundation in Miami. “Otherwise it’s not worth doing at all. Unless you really know the market of the artist, you are playing with fire.”

Chatila, who also invests in diamonds and real estate, said he’s been guaranteeing art for 10 years. “Last year, the market was slightly softer,” he said. “I ended up buying most of them.”

He said he’s selling The Architect’s Home in the Ravine to buy “another very important painting,” and still thinks he got a good deal on it. “I believe it’s worth much more,” he said. — Bloomberg

Phoenix to amend China Bank trust agreement

PHOENIX Petroleum Philippines, Inc. is asking the consent of the holders of its P1.375-billion fixed rate notes to adopt certain amendments to the trust agreement between the company and China Banking Corp., it told the stock exchange on Tuesday.

“The Proposed Amendment seeks to provide the Company with the flexibility to pursue and capture growth opportunities that will further strengthen its position as the country’s leading independent oil company,” it said.

“With the ongoing expansion of its core operations via roll-out of retail stations nationwide, coupled with the rapid growth prospects of the Company’s subsidiaries, namely PNX Petroleum Singapore Pte Ltd. and Phoenix LPG Philippines, Inc., the Proposed Amendment will allow the Company to strongly support its desired growth trajectory through the aforementioned initiatives,” it added.

Phoenix Petroleum is soliciting the consent of noteholders to amend the trust agreement dated March 16, 2018, between the company and the bank’s trust and asset management group, as trustee and the terms and conditions under which the notes were issued.

Details are set out in the consent solicitation statement that will be made available to the registered noteholders.

The period for the consent solicitation started on July 1 and will end on July 5, 2019. The company said it reserves the right to amend the terms and conditions of the consent solicitation at any time before the expiration date for any reason, including, but not limited to, extending and/or terminating the consent solicitation when the required consents have been obtained.

In March, the listed oil company disclosed that it had signed a memorandum of understanding (MoU) with Philippine National Oil Co. (PNOC), along with China’s CNOOC Gas and Power Group Co. Ltd. (CNOOC G&P), to jointly explore business opportunities in a liquefied natural gas (LNG) hub project.

Phoenix Petroleum had said the MoU was signed on Feb. 28, 2019 in Taguig City at the office of Department of Energy and in the presence of Secretary Alfonso G. Cusi, who also chairs PNOC.

The MoU signing, which came after a series of engagement talks among the three parties, will allow them to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan Philippine LNG, Inc., the project entity for the LNG project.

On Tuesday, shares in Phoenix Petroleum traded lower by 0.49% to close at P12.10 each. — Victor V. Saulon

RCBC Bankard looking to issue five million cards over 10 years

By Karl Angelo N. Vidal, Reporter

THE CREDIT CARD arm of Rizal Commercial Banking Corp. (RCBC) eyes to issue five million cards over the next 10 years, as it sees growth in the non-card debt segment.

Simon Javier A. Calasanz, RCBC Bankard Services Corp. president and chief executive officer, said the firm targets to address the “low” credit card penetration rate in the country — currently at just about four million cardholders — by tapping credit-worthy individuals yet to avail of loans.

“Based on our informal study, about 20 million Filipinos are credit-worthy, and our aim at least over the next 10 years is to issue five million credit cards to those people,” Mr. Calasanz told reporters on the sidelines of RCBC’s annual stockholders’ meeting last week.

He added that the company is looking at the growth in the non-card debt segment or those who still do not have ready access to credit.

“Those are the people we want to issue credit to because these are also the people who currently have no choice to go to the informal lending sector. The informal lending sector charges an arm and a leg in terms of interest rates.”

Mr. Calasanz is optimistic at capturing more clients from this sector even if it is deemed “risky.”

“We entered into that segment fully cognizant of the fact that delinquency might be elevated for that sector. What we did three years ago is we set our risk tolerance threshold. If it exceeds the threshold, it means our test failed, but I’m very happy we are under that risk tolerance threshold even three years into that program,” he said.

In particular, RCBC Bankard put the threshold at 12% of balance delinquency. The delinquency rate for the newly-booked accounts peaked at around seven percent which Mr. Calasanz considers as “healthy.”

“It means the risks we’re taking are fine even for these people without credit history. And because of that, we started expanding to the segment a lot more,” he said in a mix of English and Filipino.

RCBC Bankard’s approach veers from the strategy of the credit card industry for the past years of issuing cards to people who have existing credit.

“The market was not very credit-inclusive before. So now, even if you do not have a credit card or loan, we’ll still give you a card as long as we can assess your capacity to pay.”

As of end-2018, RCBC Bankard had issued 695,000 credit cards.

Last December, Mr. Calasanz said the company eyes to expand its base by an additional 180,000 cards to end 2019 with a card base of 875,000 by expanding its digital platform.

Mylene J. Bico, RCBC Bankard senior vice president, earlier said the credit card firm will continue to partner with other brands to sustain the growth of its card base.

Australia goes for back-to-back rate cuts, keeps option for more

AUSTRALIA executed its first back-to-back interest-rate cuts in seven years and left the door open for additional easing as policy makers attempt to support a slowing economy and try to rekindle dormant inflation.

Reserve Bank of Australia (RBA) Governor Philip Lowe lowered the key rate by a quarter-point to 1% on Tuesday as expected by money markets and most economists. He is due to address community leaders at an open-air dinner tonight in Darwin, where he is likely to flesh out his thinking on monetary policy and the agenda for the remainder of his visit to the north.

“The RBA hasn’t shut the door on more easing, but further rate cuts will be contingent upon a deviation in growth, labor market and inflation outcomes from the current set of forecasts,” said Sally Auld, a senior strategist for interest rates at JPMorgan Chase & Co. in Sydney who expects the cash rate to fall to 0.5% next year. “Still, this is a more dovish statement than we have usually seen after 50 basis points of easing from the RBA in recent years.”

Lowe’s second cut comes as global trade shows more signs of deteriorating, adding to headwinds constraining domestic demand as a slide in property prices discourages household spending. The Aussie dollar gained 0.2% to 69.77 US cents as of 4:08 p.m. Sydney time as futures traders boosted bets the RBA will cut at least once more, though they aren’t confident it will move again until November.

The resumption of trade talks between the US and China and signs that home prices are beginning to stabilize may provide Lowe room to pause as he waits for his monetary stimulus to flow through the economy. Yet the governor left his options open in the event further support is needed.

“The central scenario for the Australian economy remains reasonable, with growth around trend expected,” Lowe said in his post-meeting statement. “The board will continue to monitor developments in the labor market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time.”

At an international level, manufacturing took another knock at the end of the second quarter, signaling a worsening economic growth outlook that could force the world’s major central banks into action. Investors are pricing in a Federal Reserve rate cut this month and Goldman Sachs Group Inc. says the European Central Bank will lower its deposit rate by 20 basis points and restart asset purchases in September.

“The persistent downside risks to the global economy combined with subdued inflation have led to expectations of easing of monetary policy by the major central banks,” Lowe acknowledged today. He last month warned that the likelihood of major jurisdictions easing monetary policy could limit the stimulus generated as not everyone can have a weaker currency.

PROPERTY PRICES
At home, an easing of lending rules combined with the well-flagged prospect of rate cuts may have begun to encourage buyers back into the housing market, with Sydney property prices rising for the first time in almost two years in June. Along with Prime Minister Scott Morrison’s center-right government’s surprise re-election in May — on a platform of tax cuts — the short-term prospects look brighter.

Structural problems remain: the central bank needs annual growth of more than 2.75% in order to soak up spare capacity and drive down unemployment. Lowe has been urging the re-elected government to intensify infrastructure investment and initiate a new round of economic reform to try to lift the economy’s growth potential.

He has argued that the path to lower rates was cleared somewhat by the RBA estimating the new level at which unemployment lifts inflation is about 4.5%, down from the previous 5%.

Lowe is betting that if the jobless rate grinds lower, workers will eventually be emboldened to ask for larger pay rises and price pressures will then flow through to inflation. Price growth has largely stayed below the bottom of the central bank’s target inflation range of 2-3% for the past few years.

The economy Down Under has slowed in recent quarters and is on track for its weakest fiscal year since 1991.

“Consumption growth has been subdued, weighed down by a protracted period of low income growth and declining housing prices,” Lowe said. “Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target.” — Bloomberg

Phinma Energy, PPGI name new directors

PHINMA Energy Corp. and its unit Phinma Petroleum and Geothermal, Inc. (PPGI) have named new directors to take over the seats vacated by their previous owners in line with the takeover by Ayala-led AC Energy, Inc. of the listed energy companies.

Gerardo C. Ablaza, Jr., Jose Rene Gregory D. Almendras, and John Philip S. Orbeta were named directors of the Phinma Energy. Maria Corazon G. Dizon, Augusto Cesar D. Bengzon, and Jaime Urquijo Zobel de Ayala were appointed directors of PPGI.

Their appointment took effect on July 1, 2019, which was also the effective date of the resignation of the previous board members, including Ramon R. Del Rosario, Jr., who chaired both Phinma Energy and PPGI.

The corporate move follows the signing on June 25 of the deed of assignment between Philippine Investment Management (PHINMA), Inc. (PHI) and AC Energy on PHI’s rights, title and interests in the management contract with Phinma Energy.

Phinma Energy expressed its consent to the said assignment of management contract.

On Jan. 9, AC Energy announced that it had signed a “mutually strategic agreement” with Phinma Energy that gives the Ayala company a 51.48% stake in the listed firm for P3.42 billion.

Shares in Phinma Energy fell by 4.90% on Tuesday to P2.33 each, while those of PPGI rose by 0.21% to P4.68 each. — Victor V. Saulon