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TBGI ties up with Chinese firm for roll out of common towers

LISTED Transpacific Broadband Group International, Inc. (TBGI) said it is working with a China state-owned firm for the roll out of common towers for mobile network operators in the country.

In a disclosure to the stock exchange Thursday, TBGI said it signed a memorandum of understanding (MoU) with Chinese company ZPI-SOE to assist it in “pre-site acquisition to the post-construction process” of the common tower aspect of the government’s third telco project.

“The MoU entails the formulation of the Matrix of Responsibilities, Project Schedule, Contract Arrangement and Milestones of the project,” it said.

No details on ZPI-SOE were available. The company is not among the 23 firms that earlier signed an MoU with the Department of Information and Communications Technology (DICT) on the rollout of common towers.

Third telecommunications player Mislatel consortium also noted it is not in talks with TBGI for the provision of common towers for its rollout. “They were not among the companies that submitted a proposal,” Mislatel Spokesperson Adel A. Tamano told BusinessWorld.

But in its disclosure, TBGI said it has submitted an initial list of 3,000 sites that may be used for common towers located in private schools in its existing client base. These schools, TBGI said, are customers availing its broadband services.

The agreement with the Chinese firm is expected to help the listed firm improve its top line by P1 billion in the next five years.

“Each tower infrastructure is estimated to cost $100,000 per site, while the site acquisition is budgeted from $7,000 to $8,000 per site,” it said. — Denise A. Valdez

Musicians lament reported loss of recordings in old Universal fire

LOS ANGELES — Several big-name musicians voiced dismay on Wednesday that some of their recordings may have been among thousands of original masters that The New York Times Magazine reported were lost in the Universal Studios Hollywood backlot fire of 2008.

The blaze, which gutted a popular “King Kong” attraction and a swath of the studio’s fabled outdoor lot, also destroyed nearly all the master recordings stored there in a Universal Music Group archive, a loss that has long gone undisclosed, the magazine reported on Tuesday.

Universal Music estimated in a confidential 2009 report that the loss encompassed about 500,000 song titles, the article said.

In a statement on Wednesday, the company called the incident “deeply unfortunate,” but said the Times story contained “numerous inaccuracies, misleading statements, contradictions and fundamental misunderstandings of the scope of the incident.”

The extent of the loss, documented in litigation and company records the article cited, was largely kept from the public eye through a concerted effort on the part of the music label, the magazine said.

Many of the artists whose own material was reported to have been destroyed expressed shock.

“Oh my Lord… this makes me sick to my stomach,” singer-songwriter Sheryl Crow wrote on Twitter, posted with a link to the article. “And shame on those involved in the coverup.”

The rock band R.E.M said in a Twitter statement that concerned fans were making inquiries. “We are trying to get good information to find out what happened, and the effect on the band’s music, if any,” the group tweeted.

Original sound recordings of many of the greatest names in popular music since the 1940s — from Louis Armstrong and Judy Garland to Tom Petty and 50 Cent — are believed to have gone up in smoke in what the article described as “the biggest disaster in the history of the music business.”

Master recordings are typically owned and controlled by the music labels for the artists in their catalog. But they are seen as vital to musicians’ legacy as they are original, one-of-a-kind recordings considered the truest representation of sounds captured in the studio.

Masters are the source material for all reproductions, including re-releases and remixes, made for distribution, whether on digital medium or vinyl.

Universal Music Group, now owned by French media conglomerate Vivendi, said the fire “never affected the availability of the commercially released music nor impacted artists’ compensation.”

The New York Times article “ignores the tens of thousands of back catalog recordings that we have already issued in recent years, including master-quality, high-resolution, audiophile versions of many records that the story claims were ‘destroyed,’” Universal Music said.

Irving Azoff, manager for the group Steely Dan, said in a statement that the musicians had “been aware of ‘missing’ original Steely Dan tapes for a long time now.”

“We’ve never been given a plausible explanation,” Azoff said. “Maybe they burned up in the big fire. In any case, it’s certainly a lost treasure.”

Krist Novoselic, a founding member of the 1990s grunge band Nirvana, responded to a fan on Twitter asking whether the Times article meant that the masters for the group’s landmark Nevermind album were gone. He wrote: “I think they are gone forever.” — Reuters

UHC law means more nurses need to stay in PHL

THE Department of Labor and Employment (DoLE) said it is exploring measures to raise the salaries of nurses to address local shortages ahead of the implementation of the Universal Health care (UHC) Law.

On Thursday, Labor Secretary Silvestre H. Bello III told reporters, “We are considering adjustments to of the salaries of the nurses.”

He added that DoLE is in talks with the Department of Health (DoH) regarding this issue since nurses are attracted to overseas work by the more attractive salaries offered in other countries. Mr. Bello said regulation of nurses’ salaries can only come through legislation.

On the other hand, Mr. Bello said DoLE is still looking into the possibility of slowing down the deployment of nurses after his meeting with the Philippine Nurses Association (PNA). He was informed that nurses tend to go overseas after passing the nursing board exams and rendering two years of service in the Philippines.

“We can’t say to them that they cannot just leave so for now, we think adjustment of pay is what we can do,” he said.

He added however that decision to slow down deployment of nurses “will (depend on) a governing board resolution of POEA (Philippine Overseas Employment Administration).”

Mr. Bello has said the government must explore ways to make nurses stay since the UHC Act was signed into law on Feb. 20.

“You’re talking about universal health care… The timing (means we need to) consider adjusting the salaries so these nurses don’t leave the country,” he said. — Gillian M. Cortez

Ai-Ai’s latest comedy tackles fitting in with Millennials

OLDER PEOPLE trying fit in with millennials and eventually finding love with each other is the crux of the story of Rechie del Carmen’s comedy Feelennial which opens on June 19 in cinemas nationwide.

“When I was given the script, I found it so funny that I thought if I already found it funny in writing, what more if it was executed properly?” singer Maria Cielito “Pops” Fernandez told BusinessWorld during the press conference on June 7 at Circles Events Place in Quezon City.

This is Ms. Fernandez’s first stint as film producer under her company, DSL Productions. The film is co-produced by Cignal Entertainment, the original content division of pay TV provider, Cignal TV.

“I always liked funny and feel-good movies,” she said, explaining why she decided on a comedy as her first venture as a film producer.

Feelennal, a portmanteau of the words “feeling” and “millennial,” is supposed to describe middle-aged individuals who feel and act like millennials (those born in the 1980s to the 1990s).

“They are your adorable titos and titas (uncles and aunts) who stumble into one misadventure after another as they try to adapt to the lifestyle of the younger generation,” said a press release.

The film stars Martina Eileen “Ai-ai” delas Alas-Sibayan as Madame Bato-bato, a rich single mom who has everything she needs except the attention of her only son Nico (played by Arvic Tan) and so she tries to do the activities that her son is into. Her “feelennial” activities include online dating where she meets Chito (played by Bayani Rogacion Jr., better known as Bayani Agbayani), a bachelor who became rich after winning a lotto jackpot.

Both hate each other on sight but a series of mishaps and misadventures lead both characters into a “funny, yet thought-provoking situations on how romance and family dynamic has changed in today’s society,” said the release.

Despite being friends for many years, this is the first time that Ms. Delas Alas-Sibayan and Mr. Agbayani have performed opposite each other in a film, and Ms. Fernandez thinks that’s why they click in the film.

“At its core, [the film] is about two middle-aged people who find themselves in this world of romance in the digital age,” James C. Meneses, senior manager for content and channel marketing at Cignal TV, told BusinessWorld in the same event.

The film’s cast includes Ina Feleo, Nicole Donesa, and Sofia delas Alas, among others. Ms. Fernandez also has a cameo as do Martin Nievera and Paolo Ballesteros.

Feelennial opens on June 19 in cinemas nationwide.

Cignal TV is the pay TV subsidiary of MediaQuest Holdings which has a majority stake in BusinessWorld through the Philippine Star Group which it controls. — Zsarlene B. Chua

Angkas to start pilot run within the month

By Denise A. Valdez, Reporter

ANGKAS (DBDOYC, Inc.) is targeting to start the six-month pilot run of motorcycle taxis before the end of June, as the Department of Transportation (DoTr) tapped the ride-hailing firm to work with the government in studying the public transport alternative.

During the six-month period, Angkas said it hopes the government would pass a bill to legalize the two-wheeled vehicle as a means of public transportation.

George I. Royeca, head of regulatory and public affairs of Angkas, said in a press briefing Thursday the company is continuously conducting the retraining of its 27,000 bikers to follow the standards set by the government’s technical working group (TWG) for motorcycle taxis.

“We will have a set schedule when we can start the pilot implementation for everybody… Hopefully third week of June matapos lahat [we finish everything]. ’Yun ang ating target date [That’s our target date],” he said.

“We’re doing everything to make sure that the bikers we have are retrained properly with the conditions of the TWG,” he added.

The pilot test of motorcycle taxis in Metro Manila and Metro Cebu is being conducted upon the recommendation of the DoTr’s TWG, which set guidelines on fares, speed limit and safety gear.

Angkas has been in a tug-of-war with the government since 2017 as the Land Transportation and Traffic Code, or Republic Act No. 4136, does not recognize single motorcycles to operate for public transport.

The DoTr formed the TWG in December to address recommendations to include the two-wheeled vehicle as a legal transportation mode. Mr. Royeca said Angkas is hoping a bill will be passed within the six-month period to legalize its operations.

“Even before the six-month (period) ends, we hope to refile the bill in Congress and Senate. We hope to have a very healthy dialogue (with the Congress) so that we can update them on a regular basis on the operations of the pilot program, refine the implementing rules and regulations and put that as part of the bill, whatever is deemed necessary,” Mr. Royeca said.

“Hopefully within six months, mapasa ’yung bill [the bill is passed]. Bago pa matapos ’yung pilot [Even before the pilot test ends],” he added.

Angkas Head of Operations David Brian C. Medrana noted the goal of the pilot run is to aid the Congress in legislation.

“Before, walang documents, walang numbers na sina-submit, na-approve na sa Congress. With the numbers that we will be submitting on a monthly basis, we hope the legislation can be faster,” he said.

Bids for BSP’s term deposits decline

BIDS FOR term deposits dropped on Thursday as the central bank placed a lower volume on offer two weeks ahead of the second round of cuts to banks’ reserve requirement ratio (RRR).

The Bangko Sentral ng Pilipinas (BSP) received P26.962 billion in tenders for its term deposit facility (TDF) yesterday, below the P30 billion on offer. This is also lower than the bids worth P31.614 billion seen last week versus a P40-billion offer following the first round of RRR reductions.

Bids for the six-day papers totalled P10.77 billion, higher than the P10 billion on offer. However, this was less than the P18.895 billion in tenders received last week for the auction of P20-billion worth of seven-day deposits.

Accepted yields ranged between 4.5% and 4.75%, slightly below the 4.5-4.7718% margin seen last week for the one-week deposits. This caused the average rate of the six-day term to slip to 4.6661% yesterday from 4.6669% a week ago.

Meanwhile, total tenders for the 13-day tenor amounted to P7.418 billion yesterday, higher than the P6.665 billion bids received last week but still below the P10 billion the BSP placed on the auction block.

Banks sought yields ranging between 4.5% and 4.9%, wider than the 4.5-4.75% range seen a week ago. The average rate for the tenor declined slightly to 4.6562% on Thursday from last week’s 4.6048%.

On the other hand, the 27-day papers received P6.774 billion in tenders, above the P6.054 billion worth of bids last week but still failing to fill the P10 billion up for grabs.

Yields sought by lenders ranged between 4.6-4.95%, slightly above the 4.595-4.9% margin in the previous week, causing the average rate for the one-month papers to climb to 4.7848% on Thursday from 4.6602% last week.

Some term deposit tenors offered this week were slightly shorter due to Wednesday’s Independence Day holiday.

The TDF stands as the central bank’s primary tool to shore up excess funds in the financial system and to better guide market interest rates.

Last month, the BSP cut benchmark yields by 25 basis points (bp), bringing the interest rate on the central bank’s overnight reverse repurchase facility to 4.5%. The rates on the overnight lending and deposit facilities were also reduced accordingly to 5% and 4%, respectively.

The BSP also reduced the RRR of lenders by a percentage point effective May 31 to 17% for universal and commercial banks, 7% for thrift banks, and 4% for rural and cooperative banks.

The reserve ratios of big banks and thrift lenders will be reduced further to settle at 16% and 6%, respectively, on June 28 and July 29.

BSP Governor Benjamin E. Diokno has said he wants to reduce big banks’ RRR to a single digit rate to put at par with those being implemented in neighboring countries.

BSP Board Member Felipe M. Medalla earlier said banks would rather place their money on other income-generating activities such as loans — hence the decrease in TDF tenders despite extra liquidity due to recent reductions to their reserve ratios.

On Tuesday, Mr. Medalla said further interest rate cuts may not be necessary amid the current inflation trend.

“Inflation is going to be a little bit below 3% this year, a little bit higher than 3% next year. Therefore, there’s really no reason to change policy rates… If you look at the chart of inflation, there’s a 16-month period when inflation was below 2% and was even below 1% at that time,” Mr. Medalla said.

“So if something like that would happen, the economy is going to be very weak. Then you’ll have to make a position — counter that by maybe accelerating the reserve cuts or the policy rates. But right now, as I see it, its a safe bet that there’s no need to make adjustments unless we see new data,” he added. — R.J.N. Ignacio

Davao dialysis centers, hospitals starting to feel impact of nurse shortage

DAVAO CITY — Officials of the Southern Philippines Medical Center (SPMC), the biggest government hospital in Mindanao, said hospitals and hemodialysis (HD) centers in Davao City are facing a “brain drain” of nurses amid the rising number of patients with kidney-related diseases.

Trisha V. Manalaysay, adult nephrologist at SPMC, said while there has been an increasing number of private HD centers offering services, there seems to be not enough nurses on the job market.

“There are many patients they cannot cater to, and many more in need,” Ms. Manalaysay, speaking in Filipino, said at a media forum earlier this week.

“The number is already alarming. In Davao City… not everyone can be accommodated due to lack of manpower and cost,” she added.

Aileen L. Herceda, also an adult nephrologist at SPMC, said the shortage of nurses is due to hiring elsewhere in the country and overseas.

“We have a scarcity of nurses already. We really lack nurses to address the problem of kidney-related diseases,” she said in the same forum.

She said that each hospital and HD center on average perform up to 6,000 weekly dialysis sessions.

Some patients with an extreme kidney-related disease require as many as three sessions a day.

Ms. Herceda said one of the measures being taken is encouraging patients to adopt peritoneal dialysis, which can be done by the patient without assistance from a medical professional.

“Peritoneal dialysis is free as long as the patient has PhilHealth (government health insurance coverage). Peritoneal is also being used for those who don’t have access to HD centers, especially in far-flung areas,”she said.

SPMC Nephrology Section Chairman Franklin Guillano said the Department of Health (DoH) lists kidney disease as among the top 10 causes of mortality in the Philippines.

The SPMC currently provides 24/7 dialysis services and the construction of a five-level kidney center within the hospital complex is ongoing. — Maya M. Padillo

Dorm operator ramps up expansion

SY-LED Philippine Urban Living Solutions, Inc. (PULS) plans to have over 4,800 beds under its portfolio by 2020, as it looks to provide housing solutions to young professionals in the metro.

The operator of urban dormitories carrying the MyTown brand currently operates 14 buildings offering more than 2,800 beds, according to an investor’s presentation by SM Investments Corp. (SMIC) posted on its website this week.

The listed conglomerate owns a 61% stake in PULS, which it described as the pioneer of urban dormitories as communities with amenities.

Earlier this year, PULS launched MyTown Los Angeles, its largest project so far that will offer more than 1,000 beds. The seven-storey building will rise along Kalayaan Avenue in Makati, and is scheduled to be completed by next year.

The company expects MyTown Los Angeles to benefit from the completion of the Bonifacio Global City (BGC)-Ortigas Link Bridge by the end of this year, giving residents better access to Ortigas.

Rates at MyTown range from P4,050 per bed for a six-bed sharing unit, up to P16,100 for a private room every month. Tenants could choose among two-bed, four-bed, and six-bed sharing options. Rooms are fully-fitted and ready for occupancy.

SMIC said MyTown provides a “scalable solution to metro traffic and lack of affordable housing.”

Each building also offers amenities such as fitness gyms, study rooms, roofdeck pools, cinemas, and other recreation areas. All its properties are within walking distance to BGC, and are accessible to other business districts such as Makati and Ortigas, according to its website.

Established in 2012, PULS is one of SMIC’s equity investments in the property space. SMIC also has a 95% stake in Net Buildings, which operates seven commercial buildings inside the only IT park in BGC that is certified by the Philippine Economic Zone Authority. The Net Buildings cover a total gross floor area of 267,763 square meters.

SMIC has a further 34% stake in CityMall Commercial Centers, Inc., with the 66% owned by listed property developer DoubleDragon Properties, Inc. CityMall develops community malls in tier 2 and 3 municipalities in the country where SM Malls are usually not present.

The company has committed to spend about P94-98 billion in capital expenditures this year, mostly for the construction of new malls and residential projects in the country.

SMIC saw its net income attributable to the parent rise 26.2% to P10.7 billion in the first quarter of 2019, after revenues also grew 14.7% to P109 billion.

Shares in SMIC went up 0.52% or P5 to close at P960 each at the stock exchange on Thursday. — Arra B. Francia

Comic book hero

Lapu-Lapu
Directed by Lamberto Avellana
Citizen Jake vimeo site

(Another LVN Film, available on Mike De Leon’s Citizen Jake vimeo website)

LAMBERTO AVELLANA’s Lapu-Lapu (1955) is about as straightforward a biopic as you can get about the famed Mactan warrior, other than the fact that this was adapted from Francisco Coching’s highly romanticized (to put it mildly) komiks (comics) serial.

Have not read the comic, but there are excerpts online, and one passage has been directly translated to the screen: Lapu-Lapu duels with a Chinese warrior over the hand of Princess Miraha, a duel he easily wins; he’s about to kill his opponent (pausing while he considers the gravity of taking a life vs. his lifelong hatred for foreigners) only for one of the warrior’s guards to take the princess at swordpoint, allowing the party (hostage in hand) to flee on their ship.

Here’s where Coching’s exuberant graphic style takes flight, literally: Lapu-Lapu’s men tie five strong bamboo trees together, the chieftain perched at one end; he’s flung hundreds of feet in the air in a high parabola towards the ship, catches a yardarm to halt his flight, swings deckward at the armed and angry sailors below…

And that’s where the excerpt ends (too bad; I’d love to have finished the story — maybe buy the book if available). Avellana’s big screen version (with Lapu-Lapu played by Mario Montenegro) limits himself to more grounded exploits, alas, for budgetary and logistical reasons, though his feats are no less superhuman: he dives into the sea in pursuit of the princess (played by Delia Razon), catches up to and capsizes the Chinese ship, fleeing on a large rowboat, and attacks the commander he had fought earlier. Avellana, shooting the rare underwater sequence in mostly tight shots, suggests the slow-motion poetry of the combatants’ life-or-death struggle through a swirl of bubbles; a cloud of what looks like blood (the film is black and white, of course) concludes the battle.

I’ve talked about the opening to Avellana’s works: this film features what may be his most elaborate: massive miniatures of three Spanish galleons, sailing into a harbor. The image quality isn’t the best, but judging from production photographs this was a spectacle for movie audiences. It’s Magallanes (Oscar Keesee) arriving at the tail end of his quest to establish a western route to the Spice Islands, incidentally circumnavigating the globe. Avellana doesn’t turn the explorer into a larger-than-life monster slavering at the chance to abuse the natives — rather he’s a somewhat sophisticated traveler who asks the Cebuano chiefs for supplies and possible trade in as courtly a manner as possible, or as courtly as his Western European pride will allow. If one comes away from this film with anything, it’s the sense of stiff backs and proud demeanors all around, not just Magallanes’ and his men but Lapu-Lapu’s as well. Probably the most common way strangers meet, but also a tense powder keg of a situation able to detonate with an intemperate spark.

Not sure if this is Coching’s invention or Avellana’s team of writers — composed of Donato Valentin (Avellana under a pseudonym), Jessie Ramos, Avellana’s younger brother Jose Jr. — but arguably the most interesting element added to the story (little is known about the actual figure) is a love affair between the chieftain’s younger sister Princess Yumina (the fresh-faced Priscilla Cellona) and one of Magallanes’ lieutenants, Arturo (Vic Silayan, who played everything from arrogant warrior to sleazy playboy to parish priest [?!] in Avellana’s films). That complicates matters considerably: Lapu-Lapu, in trying to keep his sister under control, comes across as an intolerant killjoy of a father figure, while the soft-spoken Arturo by default earns the status of most broad-minded male around — or as broad-minded as males can possibly be in this narrative (or era); every once in a while the Cebuanos clash among themselves, and the Spaniards (Arturo included) aren’t that much more mature.

It helps (again, I’m not sure if this is Coching’s or Avellana’s idea) that when the explorers talk among themselves they are untranslated and unsubtitled. We gawk and have some idea what’s going on (the actors mime and emote clearly enough) but basically the outsiders remain outsiders — incomprehensible, unintelligible, utterly alien (unless you’re fluent in their language, which presumably 1950s Filipinos were, at least compared to today; mine is sadly inadequate). The only relief from the unrelenting Spanish comes from the translator Enrique, who Oscar Obligacion plays as a simple buffoon, alas. Of course Avellana only knows what he knew then, and presumably the thinking at the time was that Enrique must have been some kind of bootlicking collaborator if he came with the Spaniards. But a translator’s is a delicate difficult role — he bridges two worlds, must faithfully deliver a message from one to another without distortion or self-interest; more, he was possibly an enslaved Filipino and his arrival in Cebu was in effect a homecoming — making him (and not his fellow Spaniards) the first man to ever circumnavigate the globe. Kidlat Tahimik’s long-gestating Memories of Overdevelopment subscribes to this more nuanced view of the man, and one wishes Avellana had the prescience or progressiveness to depict the man differently… well, one can always wish.

Oh, there are moments. When Arturo and Cellona’s eyes lock you don’t need help to understand what’s going on; later, when Arturo is freed by one of Lapu-Lapu’s men while the village burns, the former holds his hand out and flashes his dark Silayan eyes, speaking a few phrases of useless Spanish: the latter understands anyway (“I want to help!”) and reluctantly hands over his sword.

Avellana’s contemporary films celebrate democracy and the equality of men (more or less), but his period films allow him to indulge in a little class worship: thus in Badjao it’s the tribal chief’s son (and not some seafaring nobody) who’s allowed to woo the Datu’s niece; here, Lapu-Lapu pretends to be a mere fisherman when he first meets the princess but when his right to fight for the princess’ hand is questioned, he quickly reveals himself to be a Lakan (hooray for royalty!). Likewise, when Magallanes himself falls, (do we need to post spoiler warnings for an event that happened 500 years ago?) it can’t be by the hand of some common warrior but by the chief of Mactan himself.

Much of the fighting is excitingly choreographed and shot, but more interesting than the swordplay is the process by which Lapu-Lapu approaches war: he sees that the Spaniards are armored, and possess spears spouting fire and iron; he can do little about the latter but with a bit of bribery procures an intact set of armor, and sets about developing blades capable of cutting through the heavy metal. Later (an, I suspect, more effective tactic) he also drills the men on fighting techniques that bypass armor, focusing on thighs, arms, and neck. The man is fearless and possessed of extraordinary strength (Ever tried to capsize a rowboat full of men? It isn’t easy.), but also knows the importance of tactical advantage.

As a film Lapu-Lapu is a bit of a mess. Some of the sets and effects are impressive (the miniature galleons, the datu’s soaring triangle-roofed palace) but the final battle is mostly medium shots of men whacking at each other with blades and spears; you get the sense this was more of a skirmish than an all-out battle for the future of a nation. For the finale on the beach, though, Avellana does resort to low-angle shots, giving the men standing in sand and water a suitably monumental look. Perhaps the film’s single most impressive shot happens two-thirds of the way through, when Lapu-Lapu is forced to foreswear allies reluctant to follow him in his campaign against Magallanes. He loudly demands that they leave; the camera retreats from his wrath and assumes a low-angle — almost supplicating — stance beneath his looming sweat-streaked face.

Avellana consistently coaxes strong performances from his leads, and here Mario Montenegro (despite mestizo features and the brown-skin makeup) gives a fiery performance as the eponymous hero; Delia Razon stands by his side as the equally proud princess. The characters don’t seem complex — they’re legendary figures out of history after all, and one tampers with their myth at one’s peril — but that’s where Silayan’s Arturo and Cellona’s Yumina come in, giving us an alternate pair of lovers, younger and more open to possibilities (Enrique was the perfect opportunity — but I’ve already talked at length about him). Enjoyed the film, but can’t help thinking this was a dress rehearsal for a more streamlined effort, where the depiction of a faraway culture approaches offhand poetry, and the clash between heritage and desire is incarnated in one man. That would be two years later, with what I submit is Avellana’s masterpiece, Badjao.

Far from devalued, euro surges as trade war hits yuan

LONDON — If evidence is needed of how far ripples from the Sino-US trade war are reaching, have a look at Europe where the yuan’s slump is driving up the euro’s value against trade partners’ currencies, handicapping the export-reliant bloc’s economy.

Contrary to US President Donald Trump’s grumbles about a “devalued” euro handing the region’s exporters an unfair advantage over US rivals, the euro has risen to five-month highs versus trading partners’ currencies, an index compiled by the European Central Bank (ECB) shows.

Since Mr. Trump took office in early 2017 the index, which measures the euro’s weighted average against a basket of the bloc’s 19 main trading partners, has risen four percent.

Worsening trade tensions have fueled the appreciation. The euro is up 1.6% since early May and stands two percent below three-and-a-half year highs hit in 2018.

The strength presents another headache for the European Central Bank as it struggles to revive the region’s sluggish economy, highlighting the need to stimulate domestic demand and reduce the bloc’s reliance on exports.

REWEIGHTED BASKET
Shifting trade patterns mean the share of emerging currencies in the trade-weighted euro basket has risen sharply. China’s yuan has around 23%, up from less than 10% in 2003, while the dollar’s share has shrunk to 17% from 22% over the same period.

Policy makers in Frankfurt are concerned.

Sources familiar with ECB discussions told Reuters after its meeting last week that rate-setters were open to cutting benchmark borrowing costs further from 0.40% if euro strength continued to hurt an economy bearing the brunt of the trade war.

“I’ll give you five reasons for a rate cut,” one of the sources said, before repeating “exchange rate” five times.

While the ECB does not formally target an exchange rate, its President Mario Draghi last week noted the euro’s appreciation in his post-meeting news conference.

“For a central bank that is looking at the risk of a slowing economy and with weak inflation, the last thing they need is a stronger exchange rate,” said Jane Foley, an analyst at Rabobank. European policy makers would not welcome Trump “talking down the dollar,” she added.

On some valuation models, such as purchasing power parity, the euro is indeed undervalued, given the dollar has strengthened in recent years, Ms. Foley said.

But she attributed that to the US economy’s outperformance and the Federal Reserve hiking interest rates steadily since late 2015.

“You can’t have it both ways,” she said.

And while Mr. Trump could plausibly carp at the euro’s 4%-plus decline versus the dollar over the past year, the single currency has actually risen around 7% against the greenback since he was sworn in.

THE MAGIC NUMBER
Where the euro goes from here will depend to a large extent on how far Beijing allows the yuan to weaken.

The Chinese currency has fallen heavily since May, nearing the psychologically important 7-per-dollar level after new US tariffs on Chinese goods heightened fears of a sharp economic slowdown.

Beijing might well allow that mark to be breached if trade wars escalate, with central bank chief Yi Gang saying recently he didn’t think any “numerical number” was more important than another.

Meanwhile, the trade-weighted euro is already blunting the competitive edge of the region’s big exporters, including in powerhouse Germany whose sales abroad dropped in April by nearly 4%, the biggest decline since August 2015.

The euro exchange rate shift makes it harder to reverse the economy’s slowdown, but the bloc’s problems go deeper — sluggish domestic demand, political instability in Italy and resistance in Brussels to growth-boosting fiscal expenditure.

It is also unclear that a weaker euro would actually help at a time when slower world growth is hurting consumer demand for goods and services.

Konstantinos Venetis, senior economist at TS Lombard, said exchange rates were a lesser issue than some years ago when “currency wars” saw countries actively try to influence exchange rates to get an edge over rival nations.

“What you really need is to see global demand picking up. If that happens, euro even at $1.20 won’t be so painful,” Mr. Venetis said.

“Currency depreciation can be a way to help your exports only if the world is growing briskly and demand is healthy.” — Reuters

Amazon Web Services to offer second year of cloud skills training for schools

AMAZON Web Services (AWS), a unit of Amazon.com, said it has started to offer a second year of cloud technology training sessions for higher educational institutions, expanding beyond Metro Manila to include participants in other parts of Luzon as well as Cebu and Davao.

The event is called Siklab Pilipinas 2019, a series of sessions running from May to December, with the kickoff sessions beginning recently in Metro Manila.

“At the inaugural AWS Siklab Pilipinas event in Manila last year, we saw enthusiastic participation from hundreds of students, educators and customers,” AWS said in a statement, quoting Vincent Quah, the company’s Asia-Pacifc head for Education, Research and Not-for-Profits. “Since then, ore education institutions have asked us to brng (the event) back to the Philippines, to continue with out cloud skilling program.”

AWS cited World Economic Forum data which found that 72% of companies in the Philippines are expected to adopt cloud computing technologies, with 84% signalling their intent to hire new permanent staff to address the need for skills “relevant to new technologies.”

AWS said it is partnering with Edukasyon.ph, an online social enterprise connecting students with education opportunities.

Participants completing their training will be invited to job fairs run by AWS customers Globe Telecom, Inc., Cebu Pacific Air, and the Aboitiz group for possible employment or internship opportunities.

The next leg is scheduled for Cebu City on July 16-18.

Harbor Star inks deal with Malaysian company

A SUBSIDIARY of listed firm Harbor Star Shipping Services, Inc. said it signed a deal with a Malaysian wholesaler to provide it with harbor tug services.

In a disclosure to the stock exchange Thursday, the tugboat and cargo vessel firm said its subsidiary in Malaysia, Peak Flag Sdn Bhd, was tapped by Westports Malaysia Sdn Bhd to provide its services in Port Klang.

“Peak Flag will provide a 60-ton bollard pull tug for a period of three years with an option for extension for another two years. Peak Flag is expected to commence the harbor tug services to Westports Malaysia on the 3rd week of June 2019,” it said.

Port Klang is Malaysia’s main sea gateway, where Harbor Star said Westports Malaysia is the biggest terminal operator handling 75% of the port’s throughput. It noted in the first quarter, Westports Malaysia handled a total of 2.53 million twenty-foot equivalent units (TEUs) and 2.36 million metric tons of conventional cargo from the port.

Harbor Star posted an attributable loss of P84.6 million in the January to March period, a turnaround from its attributable profit of P27.3 million in the same period last year, due to a 12% drop in service income.

It earlier said its plan was to sign more exclusive service contracts with companies to help it ensure recurring revenue.

Harbor Star signed such deals with Mariveles Grains Corp. (MGC), GNPower Kauswagan Ltd. Co. and Chevron Philippines, Inc. to offer its range of services to the companies. — Denise A. Valdez

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