PRAGUE — Global security officials agreed a set of proposals on Friday for future 5G networks, highlighting concerns about equipment supplied by vendors that might be subject to state influence.
No suppliers were named, but the United States has been pressing allies to limit the role of Chinese telecom equipment makers such as Huawei Technologies over concerns their gear could be used by Beijing for spying. Huawei denies this.
“The overall risk of influence on a supplier by a third country should be taken into account,” participants at the conference in the Czech capital said in a non-binding statement released on the last day of the two-day gathering.
Representatives from 30 European Union, NATO and countries such as the United States, Germany, Japan and Australia attended the meeting to hash out an outline of practices that could form a coordinated approach to shared security and policy measures.
Diplomatic sources said participating countries were not ready to sign any documents in Prague because they had not concluded debates about the issue at home but called for participants to seize on the momentum moving forward.
“This would be a pity if this turns out to be a one-off event,” Japan’s ambassador for cyber policy Masato Ohtaka said.
Neither China nor Huawei were invited to the event, although participants said no country or company was being singled out.
Some western countries’ concerns about Huawei center on China’s 2017 National Intelligence Law, stating that Chinese “organizations and citizens shall, in accordance with the law, support, cooperate with, and collaborate in national intelligence work.”
EU members have until the end of June to assess cybersecurity risks related to 5G, leading to a bloc-wide assessment by Oct. 1. Using this, EU countries would then have to agree measures to mitigate risks by the end of the year.
Huawei said it was ready to work with regulators and other stakeholders on creating effective rules.
“We are encouraged by the emphasis on the importance of research and development, open markets and competition, but would urge policymakers to avoid measures that would increase bureaucracy and costs and limit the benefit that 5G can bring,” it said in a statement.
“As the EU continues its deliberations, we firmly believe that any future security principles should be based on verifiable facts and technical data.”
The final document looked at the impact of 5G on policy, technology, economy and security, with general recommendations on how best to mitigate potential risks.
“All stakeholders including industry should work together to promote security and resilience of national critical infrastructure networks, systems and connected devices,” the document said.
The security issue is crucial because of 5G’s leading role in internet-connected products ranging from self-driving cars and smart cities to augmented reality and artificial intelligence. If underlying technology is vulnerable, it could allow hackers to exploit such products to spy or disrupt them.
Europe — where Austria, Belgium, Czech Republic, France, Germany, Greece, Hungary, Ireland, the Netherlands, Lithuania and Portugal are preparing to auction 5G licenses this year — has emerged as a battleground over Huawei’s next-generation technology. — Reuters
RIZAL COMMERCIAL Banking Corp. (RCBC) posted higher net income in the first quarter on the back of sustained core business growth.
In a disclosure to the local bourse on Wednesday, the Yuchengco-led lender said it booked P1.3 billion in net earnings in the first three months of the year, 15% higher than P1.1 billion tallied in the same period last year.
Net interest income grew 10% year-on-year to P5.3 billion in the January-March period, driven mainly by the loan portfolio of key select markets.
Consumer lending, which include mortgage loans, car loans and credit cards, increased 12% to P106.9 billion from a year ago.
Loans to small and medium enterprises (SME) stood at P53.8 billion, up 12% year-on-year, while the SME lending book of RCBC’s subsidiary Rizal MicroBank grew 20% to P1 billion.
Gross outstanding credit card receivables rose 31% to P22.3 billion.
On the funding side, total deposits stood at P416 billion as of end-March, P21.4 billion higher year-on-year. RCBC’s current and savings accounts reached P229.2 billion in the quarter versus the P220 billion booked in the same period last year.
Meanwhile, non-interest income for the first quarter surged 71% to P2.9 billion, bolstered by robust treasury-related and fee-based income.
Last quarter, the lender booked P1.4 billion in trading and foreign exchange gains and P1.1 billion in fee-based profits, which includes both credit and debit card-related fees, trust fees, and fees on investment banking and loans.
Total operating expenses were at P5.2 billion, up 13% year-on-year, driven by significant growth in volume of business as gross revenues jumped 26% from a year ago.
Overall, total assets expanded by 14% to P664.7 billion year-on-year.
“We have continued to build on balance sheet strength, with assets of P665 billion supported by P83 billion of capital, as we focus on growing our core business,” RCBC President and Chief Executive Officer Gil A. Buenaventura was quoted as saying in the statement.
He added that the merger of RCBC Savings Bank with the parent lender is underway and is planned to commence in the second half of the year.
In February, RCBC issued P15 billion worth of peso-denominated green bonds to be used to support local environmental and climate projects. The 1.5-year bonds carry a coupon of 6.7315% to be paid quarterly until 2020.
RCBC shares closed unchanged at P26 each on Wednesday. — Karl Angelo N. Vidal
THE cost of construction in Manila remains relatively inexpensive, according to a global index of construction costs by consultancy firm Arcadis.
The Arcadis International Construction Costs Comparison 2019 report ranked Manila 82nd out of 100 cities in terms of building costs in 2019.
In Asia, the Philippines ranked 6th, after Hong Kong, Macau, Tokyo, Singapore and Seoul.
The study evaluated 100 cities across Americas, Asia, Australia Pacific, Europe and Middle East during the first quarter of 2019, covering 20 building types.
According to Arcadis, the top five most expensive cities to build are New York, San Francisco, Hong Kong, Copenhagen and Geneva, while the five least expensive cities for construction were Bengaluru, New Delhi, Mumbai, Kuala Lumpur and Ho Chi Minh.
“Philippine GDP (gross domestic product) grew over 6% in 2018, maintaining its position as one of the fastest growing economies in Asia with significant growth in the construction sector, particularly in infrastructure, residential and commercial. The growth in tourism had led to more commercial and institution construction and put increased pressure on Manila’s infrastructure,” Arcadis said in a statement Wednesday.
Arcadis noted that the inexpensive cost of construction goes hand-in-hand with the Philippine government’s aggressive infrastructure program.
“We expect the construction market to remain strong in 2019 and 2020 due to ongoing government and private investments in major projects. The government’s commitment to decongest Metro Manila and provide accessible travel to Manila and Clark International Airport is expected to create more jobs and spur economic growth in the city and across other parts of the country,” Ross McKenzie, country head of Arcadis Philippines, said in the statement. —Denise A. Valdez
AUSTRALIAN grapes are versatile, the perfect anytime snack or addition to a sweet or savory recipe for a refreshing twist. Some ways to enjoy them are:
• Cut grapes in half, freeze, and use instead of ice as a natural way to chill and sweeten drinks;
• Match fresh grapes with specialty cheese, especially soft cheeses such as brie or camembert to create an impressive and well balanced platter for family and friends; and,
• Dip grapes in melted dark chocolate for a satisfying sweet treat.
Here are some tips on how to choose and store fresh grades:
• When buying grapes, reach for firm, plump clusters that are securely attached to green stems;
• Look for a silvery coating on grapes. This is the natural bloom (not dust) that protects the fruit and is an indicator of freshness ;
• Store grapes in an airtight container in the crisper draw of your refrigerator for up to two weeks
• Rinse grapes before eating and serve slightly chilled to enhance grapes natural crispness.
Top tip: Australian grapes have a thin and crisp skin so there is no need to peel the fruit.
FROM a cramped living room in Brooklyn, New York, a handful of young computer nerds has developed a new way to use technology to help save lives in natural disasters.
They have designed tiny electronic nodes inside baseball-sized rubber casings that create a special Wi-Fi network spanning more than 100 square miles that can be used to connect victims and first responders. It’s a simple and relatively cheap concept, but during a natural disaster when cell towers topple, technology fails and entire communities fall into darkness — communication can be the difference between life and death.
The five young men met competing against each other at computer hackathons. They joined together to compete in a contest sponsored by International Business Machines Corp. last year called Call for Code, which asked developers to use cloud, artificial intelligence and other technologies to amplify preparedness for natural disasters. Their entry, Project Owl, which stands for Organization, Whereabouts, and Logistics, uses a “clusterduck” network made of hubs that resemble rubber ducks, which can float in flooded areas. Once deployed, civilians are able to get on their cellphone to connect with first responders. Emergency workers are also able to learn about weather and get information data analytics through the cloud.
The team won the competition, beating more than 2,500 global entries, for a $200,000 grand prize. In March, they joined representatives from IBM to deploy the devices, known as DuckLinks, across five regions in Puerto Rico that were devastated by Hurricane Maria in 2017.
“In the worst disasters, chaos and misinformation are pervasive,” said Bryan Knouse, 28, chief executive officer and co-founder of Project Owl. “With better information and better analytics, you can get the resources you need to the places that need it most.” Other members of the team include Charlie Evans, 32, Nick Feuer, 25, Taraqur Rahman, 27, and Magus Pereira, 23.
During the two-week pilot program, Project Owl attached DuckLinks with Velcro to trees in the jungle, perched them atop of sand dunes on beaches, stuck them on car doors and cliff faces and even floated them above buildings in helium balloons. Project Owl managed to create a live internet network across one square mile using 23 DuckLinks, communicating via the system in areas without cell reception.
Once the devices are connected, an emergency Wi-Fi network appears on smartphones directing users to a portal where they can send messages to first responders and civil defense teams. The glue of the network is the Papa Duck, which is a cloud software service connected to all the DuckLinks. The Papa Duck offers a bird’s-eye view of the number of civilians accessing the emergency portal and what they urgently need.
Project Owl hopes to have enough tests done to make their network ready in a small capacity for hurricane season on the US East Coast, which begins in July. Every second seems to count.
Since 2000, more than 2.5 billion people have been directly affected by a natural disaster, with the economic impact in the trillions of dollars. Combined, 2017 and 2018 were the costliest years for weather-related disasters on record, with total losses of $653 billion, according to a recent analysis from UK insurance company Aon Plc.
“My hope is that we are able to set up internet networks quickly at a low cost and that they work,” Knouse said. “It doesn’t have to be fancy, crazy military technology; part of what makes a solution profound is being simple and creative.”
Greg Hauser, a communications branch manager for North Carolina Emergency Management, was responsible for getting the major networks back up and running after Hurricane Florence battered the Carolinas last September, killing 53 people and cutting power to almost two million. In order to restore connection, wireless carriers shifted portable towers into the counties that lost service. But in some cases this process took as long as 20 hours — leaving emergency responders offline and in the dark during the most critical rescue period.
“If Project Owl could generate some type of network connectivity and generate it out of equipment they drop from the sky — that would be a game-changer for us,” Hauser said.
The Weather Company, owned by IBM, predicts seven hurricanes will strike in 2019, with the potential for three to be major events. While the Project Owl pilot program proved the system could work, the team knows it has a long way to go.
Project Owl is still very much in the traditional start-up phase, Knouse said. The company’s headquarters are currently in his living room in Brooklyn, with a bench to solder the DuckLinks together set up beside the couch. “Calling it a living room would be embellishing the truth,” Knouse said. “It’s really a factory floor.”
They hope to one day connect an area up to 100 square miles or more, but for now are aiming for 10 square miles. The next deployment is planned later this month, with DuckLinks being velcroed to trees in a national park in Houston. — Bloomberg
PHILIPPINE National Bank raised P13.87 billion from its issuance of peso-denominated bonds.
By Karl Angelo N. Vidal,Reporter
PHILIPPINE NATIONAL Bank (PNB) has issued P13.87 billion worth of peso-denominated bonds, with the raised funds be used to support its lending business.
In a press briefing yesterday, the Lucio C. Tan-led bank announced it listed on the Philippine Dealing and Exchange Corp. (PDEx) its maiden offering of fixed-rate peso bonds amounting to P13.87 billion.
According to the PDEx website, the two-year peso-denominated bonds carry a coupon of 6.3% per annum to be paid quarterly until May 2021.
The lender saw an oversubscription of almost three times the announced issue size of P5 billion.
The bank was able to raise funds from about 6,200 investors sold by PNB’s 711 domestic branches.
PNB President and Chief Executive Officer Jose Arnulfo A. Veloso said the proceeds of the fund-raising activity will be used to expand its lending business.
“As we continue to participate in the safe aggressive growth strategy of the bank, we are intending to use the proceeds to fund our expansion in the loan market, specifically opportunities in the commercial banking space,” Mr. Veloso told reporters yesterday in Makati City.
“These are opportunities in the countryside that we are very happy to participate in.”
The bank chief said previously PNB intends to grow its commercial lending book, which currently accounts 35% of the bank’s total loan portfolio.
Apart from business expansion, Mr. Veloso was quoted as saying in a regulatory filing that the bond issuance is part of the lender’s efforts to “diversify our funding sources to meet the financial needs of our growing customer base.”
Standard Chartered Bank served as the sole arranger and bookrunner of the capital raising activity. It also acted as a selling agent alongside PNB.
LOAN FACILITY
Meanwhile, PNB also announced yesterday that it closed and signed a $250-million three-year syndicated loan facility with a large group of international and regional Japanese banks.
Acting through PNB’s Tokyo branch, the local lender completed the transaction on April 24, its first foray into the Japanese market.
Mr. Veloso said there was “strong” participation from the Japanese lenders.
“As most of us were having a discussion of how PNB can be able to assist these Japanese regional banks, it was heartwarming to learn that these regional banks have already been distributing these and looking for opportunities for the past year and a half,” he said.
“Clearly, the international market, specifically our Japanese neighbors, is seriously looking at our country.”
ANZ and Mitsubishi UFJ Financial Group were the lead arrangers and bookrunners of the lending facility. They were later on joined by CTBS Bank (Philippines) Corp. and Mega International Commercial Bank.
PNB booked a net income of P1.9 billion in the first three months of the year, 30% higher than P1.5 billion booked in the same period last year. Assets were at P1.03 trillion as of end-March, up 21% from P854 billion a year ago.
PNB shares closed at P54.05 apiece on Wednesday, up five centavos or 0.09% from the previous finish.
PHILEX Mining Corp. saw a 32% drop in its net income to P206.498 million in the first three months of 2019, dragged by weaker metal production arising from declining ore grades.
In a disclosure on Wednesday, the listed mining company swung to a core net loss of P111.59 million, from a core net income of P345.976 million during the same period last year.
Net revenues slipped 32% to P1.475 billion during the January to March period from P2.165 billion a year ago.
In a statement, Eulalio B. Austin Jr., president and chief executive officer of Philex Mining Corp., said the company has focused on maximizing the “remaining cash generation capacity” of Padcal which is nearing the end of mine life.
During the first quarter, total tons milled decreased by 16.6% to 1.832 million from 2.197 million the previous year. Philex noted that mineral grades diminish when ore is drawn outside the core of the deposit.
“Moreover, metal output was affected by unscheduled maintenance of some mining equipment and forest fire incidents around the mine camp that caused power outages and the immediate deployment of operations personnel to aid in fire suppression,” the company said.
As a result, gold production declined by 41.5% to 10,493 ounces, while copper production fell by 19% to 5.727 million pounds.
The average realized prices for gold and copper dropped by 2.54% to $1,304 per ounce and by 4.5% to $2.96 per pound, respectively.
“Looking ahead, the Company will continue to implement operational enhancements to improve its financial performance in the subsequent quarters. Still, its efforts will primarily be focused on the development of its Silangan project,” Philex Mining said.
Shares in Philex Mining fell by P0.05 or 1.6% to close at P3.08 apiece in the stock exchange on Wednesday.
Philex Mining is one of the three local units of Hong Kong-based First Pacific Co. Ltd., the two other being PLDT, Inc. and Metro Pacific Investments Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which is controls. — Vincent Mariel P. Galang
SEOUL — Samsung Electronics said on Tuesday it cannot confirm the shipping date for its foldable device Galaxy Fold yet and apologized to its pre-order customers in the United States for the delay.
The world’s top smartphone maker delayed global sales of the splashy $1,980 foldable phone after reviewers discovered problems with its display, dealing a setback to Samsung and its efforts to showcase its innovation.
“If we do not hear from you and we have not shipped by May 31st, your order will be canceled automatically,” the South Korean tech giant’s US subsidiary told Galaxy Fold pre-order customers in an email late on Monday, which was confirmed by a Samsung spokeswoman.
As per US regulations, Samsung was required to notify customers that the pre-orders would be canceled in the event the product had not been shipped by May. 31, it said in a separate statement to Reuters.
Though the issue does not hurt Samsung’s balance sheet, the postponement damages the firm’s efforts to portray itself as an innovative first-mover, analysts have said.
Samsung has said it plans to make at least 1 million Fold handsets in the first year, versus the total 300 million phones it produces annually on average.
It closed Galaxy Fold pre-orders earlier due to what it said was “high demand.” — Reuters
THE deceptively young looking and energetic recent septuagenarian, Tita Meneses Trillo — simply Tita for short — is the undisputed queen of Philippine wines. Her name resonates among wine lovers in the country. Tita has really been one of the true pioneers of wines in our country, and she is an extremely positive influence on the newer industry players, including myself, who are all trying to make it in this challenging yet quite exciting local wine business scene.
Tita has seen the fledging local wine industry grow to its present more conspicuous level. She was one of the founders of Anthony’s Wine & Spirits, Inc. way back in 1982. Tita helped build Anthony’s Wine & Spirits into one of Philippines’ biggest wine importers before the new millennium. Elite wine brands that are still very much leaders in their respective wine categories, such as Baron Philippe de Rothschild, Robert Mondavi, Antinori, Champagne Bollinger, Joseph Drouhin, Trimbach, Lindemans, and Concha y Toro, to name a few, at one time or another went through Tita’s wine savvy hands in the country.
By 2005, Tita would team up with her youngest brother, the very affable Jose “Joe” Meneses to form Titania Wine Cellar, Inc. Tita retained some core brands from her Anthony’s Wine & Spirits days, including Bordeaux’s leading winery, Baron Philippe de Rothschild SA, Tuscany’s 137-year-old brand Piccini (famous for their Chianti fiasco bottle in straw baskets), and one of Spain’s largest wine companies, Felix Solis Avantis. One thing in common among these wine principals that Tita maintained is that all of them are family owned. Tita is very proud of saying that her close-knit relationship with her wine principals is more like family than just a business partnership. Other Titiania exclusive brands include Champagne Baron de Rothschild, Escudo Rojo (Baron Philippe de Rothschild’s Chilean winery), Caliterra (also from Chile, the partnership between the famous Robert Mondavi and Vina Errazuriz), Bodegas Sta. Ana of Argentina, and more.
CRYSTAL ANNIVERSARY AND SHARED WISDOM
Titania Wine Cellar is soon going to celebrate its Crystal Anniversary — its 15th year — and the company is still growing stronger. Titania has a nationwide distribution network, including nine wine shops nationwide. Five of these are in Metro Manila, one is in Northern Luzon (Baguio), two are in the Visayas (Cebu and Boracay), and one is in Mindanao (Iligan). As a business model, Titania only sells and carries its own wine imports. It is not being selfish, as it is simply being practical. As it stands now, Titania already has a wine portfolio covering almost 200 wines. The Titania shops allow their wine principals to have a showroom for their wines and consistent brand exposure nationwide.
In our casual lunch at the Titania Grand Cellar in Yakal St,, Makati, Tita shared her wisdom on managing the wine business. “To survive in this business, you have to limit your number of wines or SKUs (stock keeping units). In the past three to four years, we have already stopped adding more wines to our portfolio, and have in fact consciously tried to reduce our portfolio.” This makes so much sense. I noticed new wine importers tend to be overzealous when it comes to adding more brands and more SKUs. While it is true more wines mean better depth and breadth (a wine lover’s dream), it also, sadly, means new inventories and more resources tied to stocks. While several wine principals are constantly wooing Tita to carry their brands, Tita has nonchalantly turned them down. “There are just too many wines around, and I think we need to focus on our core brands and help grow these brands organically.” she added.
ARGENTINE WINES ON THE RISE
One of Titania’s fastest growing brands now is the fascinating Argentine range from Bodegas Sta. Ana. The winery was founded in 1891 by Italian immigrant Luis Tirasso — one of the pioneers of wine making in Argentina. Now almost 130 years old, Bodegas Santa Ana has combined its rich history with modern technology to become the top selling winery in domestic Argentina. Bodegas Santa Ana is also getting better known in international wine circles, with distribution in 45 countries and counting.
Within the Santa Ana portfolio is the higher range Mascota Vineyards. The vineyard for Mascota is located at the foothills of Los Andes, barely a kilometer from the Mendoza River, and provides the vines with the ideal cool breezes from both mountain and river influences. This vineyard is easily one of the oldest and finest viticultural areas in Argentina. Chief wine maker Rodolfo “Opi” Sadler, one of Argentina’s most recognized wine makers, also makes his eponymous Opi wines under the Mascota Vineyards label.
BIG BAT CABERNET SAUVIGNON 2013, UCO VALLEY
Spending time with the queen of Philippine wines would not be complete without sharing a good wine. And true enough, Tita pulled out one of her cherished wines for us to drink with our lunch. This was the Mascota Vineyards Big Bat Cabernet Sauvignon from Bodegas Santa Ana. The wine has been getting many accolades from the biggest wine critics in the world.
While I was fortunate to be able to try other Santa Ana wines like the La Mascota and Opi range, this was my first taste of the Big Bat label. As Tita discovered, the Big Bat name refers to an actual bat that serves as the guard and gatekeeper of wine maker Opi Sadlers’ special wine selection.
This choice of wine for lunch was a bit of a pleasant surprise as normally one would expect a Malbec when it comes to Argentine wines. But Tita went with the 100% Cabernet Sauvignon and it was an exceptional choice. The wine has a Napa Cabernet-like quality to it, as it exudes a lot of ripe berries, eucalyptus, and creaminess. On the palate it is super silky with luscious sweet tannins, juicy, and caramelly at the end — this wine was perfect for our Angus steak. It is a beautiful Cabernet Sauvignon that can easily rival those of Napa and Bordeaux left bank.
While calling her “queen” may be too flamboyant, I think her name Tita is just perfect. After all, Tita also means aunt or auntie in our vernacular, and is a respectful alias for everyone’s favorite Tita in the wine industry, the one and only Tita Meneses Trillo.
The Titania Wine Cellar head office is located at 7435 Yakal St., San Antonio Village, Makati City, with contact numbers (02) 894-1316 to 74, and fax number (02) 894-1378.
The author is a member of the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, and other wine-related concerns, e-mail the author at protegeinc@yahoo.com. He is also on Twitter at twitter.com/sherwinlao.
FEDERAL RESERVE Vice-Chairman Richard Clarida pushed back against speculation in financial markets the central bank will cut interest rates to boost softening inflation up to its 2% target.
“I don’t think we’re at that place now,” Clarida said Tuesday in an interview with Bloomberg Television’s Michael McKee in Washington. “We think the policy in place now will get us there.”
His remarks were later backed up by comments from Fed Governor Randal Quarles, who played down concern over weak inflation. Clarida also echoed Fed Chairman Jerome Powell’s take that transitory factors had contributed to the most recent dip in inflation, and declared the US economy and monetary policy were in “a good place.”
“We don’t see a strong case to move rates in either direction,” he said.
Fed officials last week kept their main interest rate steady and showed no inclination to either hike or cut in the coming months as they weigh contradictory signals from the economy. The Fed has also endured sharp criticism from US President Donald Trump, who called for a drastic cut in rates as officials met last week.
Growth perked up late in the first quarter and unemployment dropped to 3.6%, its lowest in almost 50 years, as the labor market stayed hot in March. Yet inflation took another puzzling dip in early 2019, causing traders to predict a drop in rates later this year.
With the S&P 500 Index down by more than 1% on Tuesday amid escalating trade-war concerns, Clarida deflected a question about the latest twist in ongoing negotiations between the US and Chinese governments, which have threatened to break down.
“So far, the trade measures put in place really only had a very modest effect on the economy,” he said.
China’s top trade negotiator Liu He will travel to the US this week for high-stakes talks as prospects dimmed for maintaining a fragile truce after Trump threatened to raise tariffs on Chinese goods starting Friday. The president issued the threat via Twitter on Sunday.
Clarida expressed hope for an agreement, but added,“if that is not the outcome, then we’ll certainly take that into account in future policy.”
During the interview, Clarida repeatedly stressed the Fed was intent on raising inflation back to its objective. “It’s going to be an important priority of policy, to get us to 2% inflation,” he said.
The central bank is in the midst of a yearlong review of monetary policy strategy, tools and communications practices. With inflation running below target for most of the last decade, the exercise has focused largely on whether the Fed should alter the way it pursues that objective. Some officials have proposed adopting a so-called make-up strategy that would deliberately aim for above-target inflation for a period following a persistent under-shoot.
Clarida said he wouldn’t pre-judge the conclusions of the review before it was completed. He noted that while some of the proposals look great in theory, “there are some important implementation challenges that we would have to look at seriously before we would move away from our existing framework, which has served us well.”
Quarles, who also serves as the Fed’s vice chairman for banking supervision, said “from my point of view, 1.8 is 2”% in terms of the Fed’s inflation goal, and it was important to keep that broader point in mind.
“I would not undergo heroic efforts — including rethinking our monetary policy framework, or significant monetary policy stimulus — in order to edge 1.8 up to 2,” he said. “I don’t come with a prior that something is broken, and this process will tell us how to fix it, nor that everything is fine and that nothing will come out of this process.” — Bloomberg
THE $9-trillion business of financing global trade needs to go digital, according to Southeast Asia’s second-biggest lender.
Forgers have become so adept at faking documents used by banks that going paperless has become a necessity for the industry, said Ng Chuey Peng, managing director and head of global commodities finance at Singapore’s Oversea-Chinese Banking Corp Ltd. (OCBC), the region’s second-biggest bank by assets. Digitalization will also make the financing process more efficient, she said.
“Trade finance is due for a transformation,” Ng, who has over 20 years experience in commodities, said in an interview in Singapore. “Going paperless has to happen.”
In the high-tech world of financial markets, the continued use of paper receipts in trade finance looks arcane. While some processes are already being digitalized and banks and commodity traders are experimenting with blockchain technology, paper documentation remains widespread and the risk of fraud elevated.
As much as 80% of global flows of merchandise — worth about $9 trillion — is financed by some form of credit, guarantee or insurance, according to a global survey by the International Chamber of Commerce. Trade finance revenues were $39 billion in 2017.
PAPER PREVAILS
Paper is used throughout the process to establish the existence, ownership and payment of goods. The documents, including bills of lading, customs notices, inspection certificates, invoices and warehouse receipts, also track the origin and whereabouts of the merchandise and are critical for banks lending money to finance the trade.
Forgeries are “so good that you can’t tell the difference,” Ng said. “The color, the watermark is exactly like the original.”
Simon Collins, the co-founder of online trading platform TradeCloud Services Pte describes the documents used in commodities trading as “paper bridges” that link together disconnected systems in the trading process.
“These paper documents are open to manipulation in various ways,” said Collins, who was formerly head of metals at Trafigura Group. “This is high-risk given the large transaction size in the commodities industry. Digitalization, with a high level of security, can significantly reduce these risks.”
QINGDAO SCAM
Some recent high-profile cases of fraud involving commodities highlight the threat.
In one of the industry’s most notable scams, Standard Chartered Plc. and Citigroup Inc. in 2014 lost millions after forged warehouse receipts for metal held in a Chinese port were used multiple times to raise finance. Two years ago, Australia & New Zealand Banking Group Ltd. said it suffered substantial losses from forged receipts for nickel.
All three of those banks are now involved in initiatives to reduce fraud in trade finance through technology. Along with four other lenders they have started a pilot platform to share information on small- and medium-sized companies seeking access to finance, allowing them to cross-check information about potential creditors and help speed up decision-making. OCBC itself is working on projects “that leverage technology in order to reduce the use of paper in commodities trade finance,” Ng said, without giving further details.
Some of the biggest lenders are also teaming up with commodity traders to improve efficiency and security through technology. In September, trading giants Mercuria Energy Group Ltd. and Gunvor Group joined forces with Royal Dutch Shell Plc and a slew of banks to create Komgo SA, a trade-finance venture that’s developing a digital ledger-based system to track transactions using blockchain technology.
Many of the same companies are also involved in the Vakt venture that went live last year, using blockchain to trade crude, while the London Metal Exchange is reported to be behind another project called Forcefield that uses the technology to track physical metals trade.
CYBER-CRIME
Cyber-crime is also an increasing threat as fraudsters become more sophisticated, according to Collins at TradeCloud, which uses blockchain technology to enhance security on its platform.
“The problem is getting worse,” he said in an email. “Many of the people we have talked to have openly admitted that they have been the victim (or attempted victim) of cyber-crime. In particular the industry needs to draw itself away from email when it comes to transmitting sensitive information and move to a more secure messaging system.”
In addition to preventing fraud, technology creates a “tighter” payment system, said Ng. “If payment becomes so short, the financing cycle may be shorter,” she said, adding that she would then question the relevance of letters of credit, a document issued by one bank to another to serve as guarantee for payments.
Prior to joining OCBC when it started its commodity finance team in 2014, Ng was an executive director at ABN AMRO Bank N.V., and first got her start in commodity financing at Dutch bank MeesPierson N.V.
OCBC has tripled the number of trade finance customers since it started the unit in 2014, according to Ng, who declined to give a precise number. The unit’s revenue has grown 20% since its inception, and it will formalize a Hong Kong team and a US-based staff this year, she said.
Ng is unsure when the widespread adoption of technology in trade finance will happen. “Blockchain, Komgo, Forcefield, Vakt, one of these will have to work to change how trade is being done,” she said. “It’s a matter of time. When, I can’t tell, but I think it has to go paperless.” — Bloomberg
FOR Mother’s Day, gift her with Andrew Café’s newest treat, the Yummy Yema Cake — fluffy chiffon wrapped and filled with a yema spread, adorned with rosettes of Swiss butter cream and drizzles of crisp bite-sized dragées on top — freshly baked by Andrew Café’s Resident Pastry Chef-Mentor Erna Canatoy, with the assistance of culinary student-apprentices. Andrew Café is at the De La Salle-College of Saint Benilde Taft Campus, corner of Estrada and Leon Guinto Sts., Malate, Manila. For pre-orders, call 230-5100 local 1888 two days before pickup.
Century Park Hotel
CENTURY Park Hotel (CPH) is treating moms to a free lunch or dinner buffet as well as a complimentary cake. On May 12, get one free buffet lunch or dinner for every three paying guests at Café in the Park. Buffet prices start at P795 net (children ages six to 10 years old) and P1,495 net (adults). A complimentary cake also awaits mothers for a minimum consumption of P1,200 net at the Atrium Lounge. Incidentally, the hotel is also rewarding responsible voters on May 1. It is giving voters a free slice of cake or a choice of one local beer for a minimum purchase of P350 net per person. To avail the promo, simply provide a proof of voting.
Crimson Hotel Filinvest City
SPEND Mother’s Day at the hotel’s Café Eight for a Sunday brunch buffet spread filled with mom-centric dishes while enjoying bottomless mom-mosas. All mothers get to bring home a limited edition Crimson tote bag. The rate per person is P1,875 ++ inclusive of unlimited drinks. Mothers eat for free if accompanied by at least four paying guests. After the brunch, take Mom to a baking class with Crimson Hotel’s Executive Pastry Chef Ben Bourgeois. The free baking class is open for the first 20 mothers who dine at Café Eight’s Sunday Brunch on May 12. He will teach participants how to make a chocolate soufflé and homemade raspberry sorbet. The session will start at 2:30 p.m. in the Private Dining Room. Later in the afternoon, treat her to unlimited pastries, savories, and donuts paired with teas. This Tea-rrific Afternoon is available at the Lobby Lounge on May 11 and 12, 3–5 p.m. The rate for two persons is P850++. For more information or reservations, visit www.crimsonhotel.com/manila/, or call 863-2222.
Diamond Hotel Philippines
SURPRISE Mom with a gift set, take grandma or a favorite aunt out to a lavish meal with the Diamond Hotel’s Mother’s Day weekend specials from May 10-13. Have a sumptuous feast to spoil Mom at the Corniche restaurant from May 10-12. For P2,880 nett per person, enjoy international dishes at the lunch or dinner buffet. At Yurakuen, have an authentic Japanese lunch or dinner and turn it into a family affair with set menus for groups of four for P9,600 nett or groups of six for P13,600 nett. The sets come with one round of a standard beverage of choice. Reserve a table at the Lobby Lounge for May 12 where a Mother’s Day three-course set menu will be served (P1,680 nett), punctuated with a glass of white wine. Go to Bar 27 on May 12 for a night of dancing, drinks, and pica-pica. Moms in groups of four get a complimentary cocktail and a special present. All Mothers dining on May 12 will receive a complimentary slice of cake and a framed photo as mementos to remember the day. For restaurant reservations, call 528-3000.
Holiday Inn Baguio
HOLIDAY INN Baguio City Centre will have a Mother’s Day Special Buffet on May 12 featuring an array of dishes, from comfort Spanish dishes to light and tasty Italian cuisine. Unlimited coffee and pastries are available from 2 to 5 p.m. this May at the Lamisaan Dining & Bar. Just for this month, its Crispy Salmon Skin will be available for 50% off — exclusively for moms — at the Lamisaan every day. For details, visit www.holidayinn.com/baguio or call (074) 620-3333 or (632) 571-6079.
Marco Polo Ortigas Manila
A SPECIAL feast awaits Mom and the rest of the family at the hotel’s Cucina restaurant on May 11 and 12. For every two full-paying adult diners, Mother dines in the restaurant for free. This is applicable for the lunch and dinner buffet. At Lung Hin, a special set menu is available for the whole family to enjoy on May 12. Treat mom to a 90-minute massage featuring a full-body aromatherapy massage; head, neck, and shoulder massage; and a peppermint foot scrub at Flow Spa. For more information, call 720-7777 or visit www.marcopolohotels.com.
New World Makati Hotel
TREAT mother like a queen by dining at Café 1228 on May 10 to 12. There will be a lavish buffet spread and free-flowing bubbly cocktails, selected wines, red and white sangrias, local beers, and tea mocktails for lunch or dinner from May 10 and 11 at P2,988, or Sunday brunch on May 12, inclusive of a complimentary glass of champagne as welcome drink for mothers, nail polish treatment, and Belo Essentials gift bag. Moms can avail of the nail polish treatment on May 11 at 2-7 p.m., or May 12 at 2-4 p.m. Free-flowing alcoholic drinks will be served on May 12 only to foreign or dual passport holders due to the election liquor ban. One can also treat Mom to an elegant Chinese feast at Jasmine. Celebrate with the whole family on May 12, lunch or dinner, and indulge in Chef Wong Kam On’s 10-course menu at starting at P11,888 which is perfect for a party of six or more. Also avail of a Mother’s Day lunch with Jasmine’s unlimited Yum Cha — dumplings, buns and noodle dishes, a choice of one soup, one rice dish, and two freshly prepared main courses and desserts. Dining moms will receive a Belo Essentials gift bag and another special present from Jasmine. Spend a quiet moment with Mom at The Lounge and share a special Afternoon Tea Set with sweet and savory treats, a cup of coffee or a pot of tea, and a glass of sparkling wine for P1,888. For information and reservations, call 811-6888.
New World Manila Bay Hotel
THE New World Manila Bay Hotel is celebrating Mother’s Day with a range of dining options to pampering treats. At Li Li, enjoy a Yum Cha selection for the whole family for P2,288 per person. The restaurant also has lunch and dinner set menus of classic and signature items with price starting at P2,288 per person. At Market Café, there is farm-to-table salad, fresh seafood on ice, Asian specialties, European dishes, and desserts at P3,500 per person. At The Fireplace, a set menu of tomato mozzarella salad, pan-seared salmon fillet, and opera cake is available for P2,500 per person. All dining specials for moms are available on May 12. For inquiries or reservations, call 252-6888 or visit manilabay.newworldhotels.com.
The Peninsula Manila
IT’s payback time for moms on May 12 at The Pen which has created special dining offers designed to give “supermoms” the pampering and extraordinary treatment she rightly deserves on her special day. Old Manila will have a Mother’s Day Brunch Prix Fixe Menu (carving station, fine cheeses and charcuterie station, and a selection of fine French pastries) from 11:30 a.m. to 2:30 p.m. for P5,500 (adults with free-flowing Champagne) and P3,500 (adults). Children may order from a limited à la carte menu. At The Upper Lobby, Afternoon Tea will be served from 2:30-5:30 p.m., with a choice of an Afternoon Tea Set (P1,590) or an Afternoon Tea Set with a flute of Champagne (P2,190). Over at the Escolta, the Sunday Brunch Buffet will be offered from noon to 3 p.m. for P4,900 (adult with free-flowing Moët & Chandon Champagne), P3,900 (adult with free-flowing sparkling wines and local beers), P3,400 (adult), and P1,700 (children below six). All prices are inclusive of 12% VAT, 10% service charge, and other applicable taxes. One can also give Mom a much-deserved beauty and energy boost at The Peninsula Spa and Fitness Center from May 6 to 20. The Packages are: Like Mother, Like Daughter (two hours for P7,950 inclusive of taxes) for two persons, inclusive of a complimentary welcome drink, a one-hour warm Philippine herbal oil massage, and a mani-pedi; To Mom with Love (three hours for P7,500 inclusive of taxes) which comes with a complimentary welcome drink, a red rice body scrub, a one-hour aromatherapy massage, a soothing facial, and a Bath & Blow; The Greatest Mom of All (four hours at P11,290)inclusive of a complimentary welcome drink, a one-hour private yoga session, a sea salt body scrub, a one-hour The Peninsula Signature Massage, an anti-aging facial, hair spa and foot spa. (Certain treatments will be done at Le Maquillage Salon at the Basement Arcade.) For inquiries or reservations, call 887-2888, extensions 6691 and 6694 (Restaurant Reservations), and 6870 and 6871 (The Peninsula Spa and Fitness Center). E-mail at reservationpmn@peninsula.com or diningpmn@peninsula.com.
Resorts World Manila
TAKE the lady of the house on a shopping spree at the Newport Mall and get a chance to win a special Mom’s Day package via the Diamonds for Mom raffle promo. For every single-receipt purchase worth at least P2,000, mothers with RWM membership cards can get a chance to win a Jesi Mendez Salon Package, spa vouchers, an RWM Indulge Card, and special 18K rose gold earrings with diamonds worth P150,000. Mothers who aren’t RWM members yet can also sign up for a free RWM membership to qualify for the raffle. On Mother’s Day, diners may avail of the Savoy Hotel Manila’s Merry Mommies Buffet at the Savoy Café for P1,400 nett inclusive of a box of chocolates for the special lady. Mothers may choose from over 70 dining outlets within RWM that will surely satisfy any gastronomical craving. Among these, Hua Ting-Brasserie Chinoise at Hilton Manila offers a special set menu for six starting at P11,668.85 nett per set, while S Kitchen at the Sheraton Manila Hotel features its lunch buffet at P2,800 nett. Marriott Café’s Sunday Brunch 2.0 starts at P3,288 nett. RWM signature restaurants also have something in store on May 12, with Café Maxims whipping up Mom’s Delight, a dark chocolate filled with mango yogurt mousse on a white chocolate peanut crumble base, topped with honey jelly, and The Terrace’s Mongolian Buffet with unlimited serving of her favorite stir-fried dishes exclusively for Mother’s Day. Asian fusion resto Ginzadon also sets up a special for moms with Chef’s Japanese Choices, a five-course Omakase featured for the entire month of May. Newport Mall shops and restaurants also have special offers for mothers to celebrate their special day. Italian restaurant Parmigiano offers a slice of its Tres Leches cake for families who dine with them on May 12 with a minimum spend of P1,000. The Travel Club also has special discounts on premium brands such as Delsey and Hedgren. For details, visit www.rwmanila.com.
Richmonde Hotel Iloilo
ON Mother’s Day, Richmonde Hotel bends the knee to the queens of Iloilo with a feast fit for royalty. The Granary serves a memorable dinner of international fare including baked stuffed turkey, mejillones tigre, chicken musakhan, beef carpaccio, crackling pork belly, Indian chicken 65. The Mother’s Day Dinner Buffet is available on May 12 from 6 to 11 p.m., and is priced at P1,500 nett. Children between six and 12 years old get a 50% discount and those five years old and below may eat for free. For inquiries and reservations, call (+6333) 328-7888.
Richmonde Hotel Ortigas
A MOTHER’S DAY Filipino Lunch Buffet is being set in her honor on May 12 at the Richmonde Café featuring dishes from around the country from soups, salads, and starters like Sinigang na Salmon Belly sa Miso, Kinilaw na Tanigue sa Mangga, and Tinapang Bangus Ensalada, to entrées, carving, and desserts like Inihaw na Pusit, Lechon Kawali, and Pastillas Dulce de Leche Cheesecake. Richmonde Café is giving a 4+1 deal — for every four guests paying the regular rate of P1,080 nett, mom eats for free. Children ages six to 12 years old get 50% off while children five years old and younger eat free of charge. For inquiries and reservations, call 638-7777.
Shangri-La Plaza
COOKIES from Tochi Desserts will be given for free from Shangri-La Plaza on May 12 from 12:30 to 3:30 p.m. and 5-8 p.m. Cap off a memorable day with a souvenir photo at the special Mother’s Day photo booth at the 2/3 Level, East Wing.
Sheraton Manila
Carving station at the Sheraton’s S Kitchen
ON Mother’s Day, the Sheraton throws a celebration fitting for a queens. First there is a lunch buffet at the S Kitchen for P2,800. The hotel has partnered with Victoria’s Secret Philippines which will give away some gift items and discount vouchers of up to 50% off to moms dining in. Every mom will also bring home chocolate gift boxes made especially for them by Sheraton Executive Chef Kiko Santiago. For inquiries and reservations, call 902-1800 or visit www.sheratonmanila.com.
Toblerone
THIS Mothers’ Day, Toblerone has come out with limited edition Mothers’ Day packs. Toblerone teamed up with Isabelle Daza and Georgina Wilson who designed the limited edition Toblerone sleeve designs. In addition to these, one can also choose from sleeves designed by June Digan, who is known for bold artworks combined with calligraphy; Louise Dimagmaliw whose artwork is known for its whimsical quality; Anina Rubio who is known for her colorful creations; and Raxenne Maniquiz who works on multi-colored patterns. The limited edition Mothers’ Day sleeves are available in leading supermarkets and groceries nationwide.
TWG Tea Salon
TWG TEA offers a Mother’s Day set menu featuring seared halibut fillet wrapped in a chive crepe with baby potatoes and shallot confit, served with a tartar sauce infused with Genmaicha; a squid and scampi pasta served with shimeji mushrooms, garlic and parsley infused with Tokyo-Singapore Tea; a warm cup of Geisha Blossom Tea or French Earl Grey Tea; and end it with a heart-shaped gateau of honeycomb layered with strawberries and banana, coated with Silver Moon Tea infused white chocolate topped with dried roses. TWG Tea’s Mother’s Day Set Menu is priced at P1,250 for a starter, main course, tea, and dessert and is available until May 26 at all TWG Tea Salons in Greenbelt 5, Shangri-La Plaza, and Central Square.
