Bad loans of rural, cooperative banks climb further

January 4, 2019 | 12:02 am

BAD LOANS held by smaller banks surged faster in September 2018 to outpace a modest expansion in total lending, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Non-performing loans (NPLs) held by rural and cooperative banks rose by 14.2% as of end-September to P16.754 billion, coming from the P14.675 billion recorded during the comparable period in 2017.
This is faster than the 4.1% climb in total lending, which brought the loan portfolio of these small lenders to P140.962 billion from P135.393 billion the previous year.
NPLs refer to loans left unpaid at least 30 days past due date. These are considered as risky assets given a slim chance for borrowers to actually pay for their outstanding balances, which means losses for lenders.
With more soured debts, the banks’ NPL ratio rose to 11.89% of total outstanding loans, rising from 10.84% in September 2017.
Past due loans, which cover all types of loans which missed the payment deadline, soared by 31.5% to P21.922 billion, data showed. Meanwhile, restructured debts with longer repayment periods also picked up by roughly a tenth to reach P2.434 billion.
Unlike the bigger universal and commercial banks, rural lenders mostly cater to smaller clients and communities, with a focus on the farming sector as well as micro and small businesses operating in their area. They are considered as riskier segments compared to corporate borrowers.
With the higher share of problem loans, the banks hiked their allowance for possible credit losses to P12.747 billion, 11.7% higher than the P11.408 billion which they set aside previously. This is enough to cover 76.09% of the NPLs, providing some comfort that the lenders can stay afloat even if these unsettled accounts are written off.
Rural banks also saw a bigger deposit base in September, with the amount rising by 5.1% to P173.436 billion. This funded the loans granted by lenders.
The central bank keeps track of NPLs to assess the asset quality of lenders.
The BSP shut down 12 problem banks in 2018 after they found that the lenders were not viable to sustain their operations. Governor Nestor A. Espenilla, Jr. previously said that they are actively weeding out “weak” banks in the interest of consumer protection and financial stability.
GOING DIGITAL
In another development, the central bank is pushing all banks and financial firms to actively promote the use of electronic fund transfers among clients and personnel.
BSP Memorandum 2019-001 signed by Deputy Governor Chuchi G. Fonacier said that lenders have until March 31 to educate frontline staff in bank head offices and branches about the use of two automated clearing houses.
Lenders also need to post information materials and online links about the InstaPay and the Philippine Electronic Fund Transfer System and Operations Network or PESONet.
The central bank has required all banks and other financial firms to offer electronic banking portals and interbank transfer schemes in place by Nov. 30, 2018, in line with the regulator’s goal raising the share of e-payments to 20% of all transactions in the Philippines by 2020, coming from a measly 1% share back in 2013. — Melissa Luz T. Lopez

My 15 favorite nonfiction books of 2018

January 4, 2019 | 12:02 am

By Stephen L. Carter
Bloomberg Opinion
HERE are my nominees for the best nonfiction books of 2018. I haven’t read everything published this year, but I read a great deal, and these are my 15 favorites. Each reflects serious thought, research and argument. Each made me look at things in a new way. The first 14 are listed in random order (no tyranny of the alphabet). At the end is my choice for best nonfiction book of the year.
nonfiction books 2018 1
RICHARD SENNETT: BUILDING AND DWELLING: ETHICS FOR THE CITY
Sennett, who has been writing about cities for a good half century, has never been sharper. As the world grows more urban, he argues, we face a crisis: Cities are shaped by the designs of planners rather than by the actual lives, needs and beliefs of their inhabitants. People who live in cities should not only be free but feel free.
nonfiction books 2018 2
JOANNE B. FREEMAN: THE FIELD OF BLOOD: VIOLENCE IN CONGRESS AND THE ROAD TO THE CIVIL WAR
Think we’re divided now? In 1854, one member pulled a gun on another… on the floor of the House of Representatives. Freeman’s book is full of such vignettes. (Yes, the famous Sumner story is here). And our rhetoric pales next to the barbs exchanged in those days.
nonfiction books 2018 3
BRYAN CAPLAN: THE CASE AGAINST EDUCATION: WHY THE EDUCATION SYSTEM IS A WASTE OF TIME AND MONEY
I’m not sure he’s right, especially about education being almost entirely for the purpose of signaling, but goodness does he make a strong case. Agree with him or not, you’ll never look at the schools and colleges in quite the same way.
nonfiction books 2018 4
DAVID W. BLIGHT: FREDERICK DOUGLASS: PROPHET OF FREEDOM
Already lauded as the definitive book on Douglass, this volume by our foremost expert on the great orator showcases Douglass’s human foibles as well as his grand triumphs.
nonfiction books 2018 5
PAIGE WILLIAMS: THE DINOSAUR ARTIST: OBSESSION, BETRAYAL AND THE QUEST FOR EARTH’S ULTIMATE TROPHY
Less a dinosaur story than a heist story — how did that illegal Tyrannosaurs skeleton wind up at an auction in New York? — with plenty of fascinating details about the way that the market for fossils has distorted the incentives in paleontology.
nonfiction books 2018 6
DAVID QUAMMEN: THE TANGLED TREE: A RADICAL NEW HISTORY OF LIFE
Actually, more a history of the science that helps explain life. Never has molecular phylogenetics seemed so fascinating. And the discovery a few years ago of a new form of life is something I’d overlooked. But what I find particularly fascinating about this widely acclaimed volume is Quammen’s ability to show us, in lively prose, how terribly difficult science is: the false starts, the confirmation bias, the backbiting and jealousy, the lengthy detours that become expensive dead ends. And the personalities. (He’s particularly good on the controversial genius Lynn Margulis).
nonfiction books 2018 7
TYLER COWEN: STUBBORN ATTACHMENTS: A VISION FOR A SOCIETY OF FREE, PROSPEROUS, AND RESPONSIBLE INDIVIDUALS
Three cheers for long-termism! Pity that neither politics nor the psyche of (most) humans actually works that way. The writing, from my Bloomberg Opinion colleague, is at once amusing and relentless. A fun, provocative read.
nonfiction books 2018 8
JASON BRENNAN: WHEN ALL ELSE FAILS: THE ETHICS OF RESISTANCE TO STATE INJUSTICE
One of our most provocative philosophers argues that if we can use force to stop others from hurting people unjustly, we can also use force to stop the government from hurting people unjustly.
nonfiction books 2018 9
JUAN WILLIAMS: ‘WHAT THE HELL DO YOU HAVE TO LOSE?’ TRUMP’S WAR ON CIVIL RIGHTS
I am not generally a fan of polemics, but Williams is an elegant writer, gathers evidence dispassionately, and stays far away from political correctness. He skewers everybody. You needn’t agree with every word to find this a fine read.
nonfiction books 2018 10
SABINE HOSSENFELDER: LOST IN MATH: HOW BEAUTY LEADS PHYSICS ASTRAY
Turns out that mathematicians are doing great things, but the physicists not so much. Hossenfeld, a theoretical physicist and popular blogger on the subject, accuses her colleagues of being so in love with elegance that they don’t worry as much as they should about whether they’re right or wrong. (Parts of the book are tough sledding for the lay reader, but it’s more than worth the effort).
nonfiction books 2018 11
COLIN G. CALLOWAY: THE INDIAN WORLD OF GEORGE WASHINGTON: THE FIRST PRESIDENT, THE FIRST AMERICANS, AND THE BIRTH OF THE NATION
You may never look at the Father of Our Country in quite the same way after reading this finalist for the National Book Award. It turns out that Washington was not terribly kind to those who were here first.
nonfiction books 2018 12
JEFFREY C. STEWART: THE NEW NEGRO: THE LIFE OF ALAIN LOCKE
A brilliant biography, winner of the National Book Award, of the man who largely fostered the flowering of black art and writing that became the Harlem Renaissance and laid the foundation for much of African-American intellectual thought over the ensuing century.
nonfiction books 2018 13
GREGG EASTERBROOK: IT’S BETTER THAN IT LOOKS: REASONS FOR OPTIMISM IN AN AGE OF FEAR
So maybe the world isn’t going to pieces. Easterbook argues that if we study actual evidence, things are actually going well in the US and elsewhere in the world, economically, environmentally, demographically, and in most other ways. And most of what’s not working, he says, we have the tools to fix.
nonfiction books 2018 14
PHILIP HAMBURGER: LIBERAL SUPPRESSION: SECTION 501(C)(3) AND THE TAXATION OF SPEECH
Don’t be turned off by the provocative title. Hamburger asks a great question: Why exactly do we limit the political speech of charitable organizations? Answers it, too. The rule wasn’t handed to us on stone tablets; it’s always been politics, all the way down.
Finally, my choice for the best nonfiction book of 2018:
nonfiction books 2018 15
EARL SWIFT: CHESAPEAKE REQUIEM: A YEAR WITH THE WATERMEN OF VANISHING TANGIER ISLAND
I can’t remember a book in recent years that taught me quite so much. Every page is vivid and rich. Tangier Island, Virginia, famous as a source of soft-shell crabs, is going under, literally — a victim of rising seas, relentless storms, and a changing economy. Swift spends plenty of time on the ground, and so is able to pierce the veils of myth and mysticism that have long surrounded the community of fewer than 500 stalwarts, whose political and religious lives are far more complex and nuanced than their stereotypes suggest. He doesn’t agree with their beliefs, but his respect and affection for them are patent. A model for what serious reportage should be.
So those are my picks for 2018. Happy reading.
Martin Gurri, The Revolt of the Public and the Crisis of Authority in the New Millennium, would certainly have made the list, were it not a revised version of a book that was self-published in 2014 and then published formally in 2016.

Stephen L. Carter is a Bloomberg Opinion columnist. He is a professor of law at Yale University and was a clerk to US Supreme Court Justice Thurgood Marshall. His novels include The Emperor of Ocean Park, and his latest nonfiction book is Invisible: The Forgotten Story of the Black Woman Lawyer Who Took Down America’s Most Powerful Mobster.

A heck of a ride

January 4, 2019 | 12:01 am

By Alexander O. Cuaycong and Anthony L. Cuaycong
PART brawlers, part Japanese dramas, and part open-world experiences, Sega’s Yakuza games have always been a ridiculous but compelling blend of action and adventure. While they initially seem like compilations of conflicted ideas from a fever dream, their interesting, over-the-top antics and enjoyable combat systems are truly anything. Their stories keep you invested, and their atmosphere, taken individually or collectively, is nothing short of engrossing. Yakuza Kiwami 2, a remake of 2006’s Yakuza 2, follows pretty much the same formula. Featuring better graphics and sounds, enhanced gameplay, and new story elements, it does its best to keep the spirit of its source material while tacking on some of its own unique flair.
In Yakuza Kiwami 2, you follow the story of Kiryu Kazama, a former gang enforcer who struggles to put the old ways behind him. After the assassination of one of the Yakuza leaders threatens to spark an all-out war in the streets, he is reluctantly deprived of his peaceful existence and forced to take matters into his own hands. He finds himself back in the life he had tried so hard to avoid, and through the use of his fists, his charisma, and the sheer stoic nature of his character, he moves to find the men responsible for the killing and prevent any further bloodshed.
The main plot of Yakuza Kiwami 2 is solid, its serious tale of gang politics and violence complemented by its larger-than-life set pieces. Propelled by a great-looking and sounding foundation, the narrative elevates it and continually hooks you in. It can border on the absurd at times, but the way it flows seamlessly from one sequence to another is nothing short of sensational. And with new chapters added to fill in the blanks evident in the original, there’s plenty of the story to experience — and all of it interesting, if not great. Kiryu is thrown into all sorts of trouble, and when violence greets him, he possesses the wherewithal to hold his own against his opponents.
To be sure, combat is something Yakuza Kiwami 2 does very well. The battle mechanics aren’t overly complicated, and, in fact, make for fluid action and reaction. They reward aggression, patience, and skill. And while they don’t offer the stance-switching capacity of Kiryu in Yakuza Kiwami, the fast-flowing nature of fight sequences more than make up for the omission. He is able to dart, weave, and beat down his foes with his fists or any weapons he can lay his hands on, and Heat moves are just as flashy as ever. Earned by landing hits and dodging attacks, they entice you to engage in multiple sidequests.
Fortunately, Yakuza Kiwami 2’s nonlinear pursuits are anything but boring. Not always serious but invariably sure to entertain, they show that while the game’s open world may not be as expansive as other titles, it is nonetheless filled to the brim with content. Activities are always on hand for those willing to do them, and even as they would definitely be out of place in any other gang-themed action brawler, they’re right at home in the Yakuza series. What other game can have you singing in karaoke bars or playing golf, in the process giving that feeling of utter drollery, and yet keep you extremely engaged in its setting?
In a nutshell, Yakuza Kiwami 2’s ability to be comical and yet totally immersive is what makes it so engrossing. While the Yakuza series has never quite taken itself so seriously, the many antics Kiryu can perform in its latest release are just absurdly funny, but never too fantastic that it’s next to unbelievable. It takes itself seriously, but knows when to lighten up and have a laugh, even at its own expense. It can keep you hooked with its main story and, at the same time, entertain you with its side quests. It offers a stylized charm that no other series has been able to mimic, presenting a juxtaposition of comedy and drama without the slightest hint of regret.
In the final analysis, Yakuwa Kiwami 2 wonderfully treads the fine line between being weighty and being silly. It’s a brilliant game from start to finish; you never run out of things to do while uncovering a deep storyline at your own pace. Parenthetically, its biggest flaw isn’t that it does anything badly, but that it has to end at some point. Until then, it’s a heck of a ride that both those new to the Yakuza series and longtime fans will definitely love. It’s a high point that will make you look forward to more of the same.

POSTSCRIPT
Mutant Year Zero: Road to Eden (PS4) — It takes a lot for developers to make games that prove more than what they seem and ultimately leave players with a lasting impression. While some titles don’t try to be anything more than temporary diversions, others strive for more than just a fleeting experience. Mutant Year Zero: Road to Eden is significantly of the latter kind, with The Bearded Ladies striving to combine environment-prompted storytelling and turn-based mechanics to produce a gripping and enjoyable release inspired by — believe it or not — a series of pen-and-paper role-playing games.
Mutant Year Zero: Road to Eden builds upon and brings its tabletop roots to life on the PlayStation 4, Xbox One, and Personal Computer. Players are thrust into the action as part of a group of Stalkers, mutants tasked with retrieving supplies and resources to fuel the settlement of Ark’s survival in a post-apocalyptic world. When one of the teams goes missing while on an expedition, they get to control a party of three characters in an effort to find Hammon, the chief operator of the city’s systems, as well as look into the existence of the mythical land of Eden. Along the way, they are compelled to scavenge for supplies and weaponry, and fend off the many dangers that lurk beyond the safety of Ark’s walls.
Graphics-wise, Mutant Year Zero: Road to Eden looks fair but doesn’t push the limits of its technology. Nevertheless, it sets itself apart though its character and background designs. Vegetation and ruins are heavily contrasted with stylized cityscapes. Abandoned shacks and dark forests are par for the course, and constructed well enough to make them feel unique and interesting. Alongside a wide variety of mutants, both friendly and otherwise, they succeed in setting the proper tone for the narrative to move along.
Parenthetically, Mutant Year Zero: Road to Eden’s gameplay holds up well. Its combat mechanics are straightforward but engrossing, playing out similarly to Firaxis’ XCOM releases, with characters being able to move and perform actions or dash to designated areas in turns. Pretty much standard fare as far as these games go? Perhaps. The Bearded Ladies makes its work stand out by adding a twist to exploration: Players are able to maneuver their squad in real time around the map, picking up much-needed supplies and even being able to ambush patrolling enemies and whittle them down one by one. It’s a simple quirk, but it creates some interesting scenarios and gives players some leniency on how to neutralize threats. Do they go in guns blazing once they’ve found some defendable areas? Do they lure enemies into manageable firing zones? Or do they move about the map and risk detection, but also get to take down stragglers to reduce the overall number of enemies?
The extent of freedom offered players is what makes Mutant Year Zero: Road to Eden so unique. Its interesting blend of gameplay elements framed within its grim and dark setting creates a captivating experience. That said, it has set rules, and is far from perfect as a result. The Random Number Goddess system, for instance, can lead to frustration, especially during times when a crucial shot can mean the difference between survival and death. It certainly doesn’t help that some enemies are brutally unforgiving and can easily beat players down if not approached properly. The lack of a meaningful level progression for characters is also a hindrance; the skills earned during gameplay and the weapons and armor that can be scavenged and bought seem like minor upgrades rather than major overhauls and do very little to spice up the gameplay once a routine is established.
For all the unpredictability of dicerolls in combat, Mutant Year Zero: Road to Eden is a straightforward story from beginning to end, focused more on its themes and less on its replay value. Nonetheless, it’s absolutely fantastic at its best and leaves players wanting for more. The first playthrough is especially revealing, cementing its status as a solid addition to the PS4’s extensive library of role-playing titles despite its flaws. (7.5/10)

Yakuza Kiwami 2 2

Video Game Review

Yakuza Kiwami 2
PlayStation 4
THE GOOD:

• Outstanding production values

• Compelling narrative

• Fun, fast-paced combat mechanics that rewards skill and smart play

• Plenty of side activities and minigames on offer

THE BAD:

• Comedic elements may seem overbearing

• Sidequests flirt with redundancy

• The “open world” can feel small at times

RATING: 9/10

National gov’t debt rises 11.8% to P7.195T

January 4, 2019 | 12:01 am

THE national government’s outstanding debt was P7.195-trillion in the 11 months to November, up 11.8% year-on-year, the Bureau of the Treasury (BTr) said on Thursday.
The latest figure is 0.4% higher than the P7.167 trillion posted in the 10 months ended October.
This is equivalent to 98.16% of the projected P7.33 trillion outstanding debt for 2018.
Some 65.42% of the debt or P4.707 trillion was borrowed from domestic sources, up 11.9% year-on-year.
Domestic debt also rose 1.9% from the end of October.
“For the month, the registered increase in domestic debt was due to the net issuance of government securities amounting to P88.33 billion as the committee fully awarded treasury bonds amid strong market demand. This was slightly offset by the appreciation of the peso,” the BTr said in a statement.
The peso appreciated to P52.389 at the end of November from P53.527 at the end of October.
Meanwhile, the government owes P2.487 trillion to foreign lenders, up 11.6% from a year earlier and down 2.3% from October.
“The decline was particularly large due to the impact of the stronger peso registered for the month as it relieved P54.15 billion along with net repayments on foreign obligations amounting to P5.89 billion. This was slightly tempered by the net appreciation of third-currency denominated external debt amounting to P0.21 billion,”the BTr said.
The government borrows from domestic and foreign sources to fund its budget deficit, which is capped at 3% of gross domestic product for 2018.
The government set a 65-35 borrowing mix for 2018, in favor of domestic sources. The share of foreign debt widened from 20% in the previous year, with the government seeking to take advantage of favorable interest rates.
This year, the government hopes to maintain a 75-25 borrowing portfolio in favor of domestic lenders to help manage exposure to external risk.
The government expects the debt as a share to the economy to decline to 38.6% in 2022 from 42.3% in the first nine months of 2018. — Elijah Joseph C. Tubayan

Common touch: The best and worst of the rapper’s movie roles

January 4, 2019 | 12:01 am

By Richard Roeper
POP QUIZ!
What do the following actors have in common:
Awkwafina, Cate Blanchett, Jacqueline Bisset, Sandra Bullock, Ellen Burstyn, Gerard Butler, John Cho, James Corden, Chace Crawford, Elizabeth Debicki, Laura Dern, Danny DeVito, Jennifer Garner, Regina Hall, Anne Hathaway, Katie Holmes, Russell Hornsby.
Also: LeBron James, Mindy Kaling, Anthony Mackie, Sarah Jessica Parker, Kumail Nanjiani, Gary Oldman, Keanu Reeves, Storm Reid, Rob Riggle, Rihanna, Gina Rodriguez, Amandla Stenberg, Channing Tatum, Bradley Whitford, Mary Elizabeth Winstead, Renee Zellweger and Zendaya.
All of these fine talents — and many more — were in a movie with Common last year.
That’s how common it was in 2018 to see a movie featuring Common.
I don’t think a month went by this year when I didn’t see Common or hear Common or experience something produced by Common.
In addition to playing Rafiq on Lena Waithe’s The Chi on Showtime, Common is a producer on the show. He is the voice of Kibari/Kiburi on the animated Lion King spin off series The Lion Guard.
Not to mention his day job in music and those ubiquitous Microsoft commercials, with Common onstage, rallying the world: “Today, right now, you have more power at your fingertips than entire generations that came before you!”
Even if I don’t immediately go online and order something Microsoft-y, I’m always fired up after seeing one of those spots. Yes! Common is RIGHT! LET’S DO THIS!
Most impressively, the Chicago-born Lonnie Corant Jaman Shuka Rashid Lynn, aka Common, continues to fight for social justice and, through his Common Ground Foundation, works to empower high school students from underserved communities on myriad fronts.
Forgive the pun, but he truly is an un-Common man.
In addition to the activities described above, Common also was a ubiquitous presence in the movies last year.
I’m ranking these roles from my favorite on down, but I pretty much enjoyed each of the performances, even in some of the, shall we say, less successful movies.

1 The Hate U Give
The Story: This is George Tillman, Jr.’s smart, blistering and moving tale of one Starr Carter, a girl (Amandla Stenberg) caught between her time as a prep student in an upper-class community and her home life in an underprivileged and sometimes dangerous neighborhood.
The Common Factor: In one of his best film performances to date, Common plays Starr’s Uncle Carlos, a dedicated policeman caught in his own “two worlds” conflict when his work as a cop slams up against a racially charged tragedy involving one of his own family members.

2 All About Nina
The Story: In this sharp and funny little unpolished gem, Mary Elizabeth Winstead plays the title character, a talented but self-destructive stand-up comedian.
The Common Factor: He’s the handsome and charming and commitment-averse Rafe, a successful contractor who hooks up with Nina and just might possibly be an equal match for her.
Common and Ms. Winstead kill it in an extended sequence in which they get together at his place, vow not to have sex, have sex, talk, have sex, talk, have sex …
3 The Tale
The Story: In this HBO original movie, Laura Dern is a journalist investigating long-buried, life-changing events from her youth.
The Common Factor: As Martin, Ms. Dern’s live-in boyfriend, Common strikes just the right tone between super supportive and, “Hey, what about US!”
Solid work.
4 Here and Now
The Story: Sarah Jessica Parker plays Vivienne, a renowned jazz singer and recording artist recently diagnosed with a fatal illness. (Not to be confused with the HBO series Here and Now, or the other movie from 2018 titled Here and Now, or the 2014 film Here and Now, or the 2013 short Here and Now, or the 1992 TV series Here and Now, or the 1989 Luther Vandross song “Here and Now,” et al.)
The Common Factor: He’s Vivienne’s manager and confidante, Ben. It’s a classic Common-as-a-rock performance, sprinkled with light humor.
Ben: Your mother called today. Several times.
Vivienne: What did she say?
Ben: Are you kidding? Why would I pick up THAT call?

5 A Happening of Monumental Proportions
The Story: A slice-of-life, workplace drama/comedy set at a high school and a publishing company.
The Common Factor: Looking uncomfortable in his nerdy office-drone attire, Common plays Daniel, a widower and father of a teenage daughter (Storm Reid), who gets fired from his job when the boss finds out about his affair with a married office assistant (Jennifer Garner). It’s NOT a good movie, but there’s something fantastically weird about the confrontational scene between the wronged husband (played by Keanu Reeves!) and our man Daniel.

6 Smallfoot
The Story: It’s a breezy, sweet-natured animated tale set mostly in a village populated entirely by Yeti of various shapes and sizes.
The Common Factor: Our guy is the voice of the Stonekeeper, the leader of the village elders. The Stonekeeper is also a father, and Common is always strong playing paternal types.

7 Hunter Killer
The Story: Oooh, this was that terrible submarine political thriller with Gerard Butler et al., engaging in some wildly stupid and implausible games of cat and mouse.
The Common Factor: Common plays Rear Adm. John Fisk, a war hero turned diplomat who (along with Linda Cardellini’s NSA analyst) urges common sense and restraint even as the warmongers, led by Gary Oldman’s chairman of the Joint Chiefs of Staff, well, monger for war. Good on Adm. Common for standing up to the bloodthirsty chicken hawks!
8 Ocean’s 8
The Story: Female-starring spinoff of the heist series, starring Sandra Bullock, Cate Blanchett, Anne Hathaway, Awkwafina, and Rihanna.
The Common Factor: He has a cameo as … Common. Utterly believable in the part!
Common is also in Saint Judy, which is listed as a 2018 film on IMDb but has yet to be released. Perhaps we’ll see it this year, along with other upcoming Common-starring films such as The Informer, The Kitchen, Eve, El Tonto…. — Chicago Sun-Times/Andrews McMeel Syndication

Bullish on Philippine stocks

January 4, 2019 | 12:01 am

2019, the Year of the Earth Pig, will be a year of abundance and positive vibes according to Oriental astrology. Its immediate predecessor was 1959, when the Philippine post-war economy was flourishing under then President Carlos P. Garcia, who pursued the “Filipino First” policy. Like 1959, 2019 is also a midterm election year in the country.
On New Year’s Eve 2018, the city government of Taguig and Bonifacio Global City (BGC) teamed up to host the grandest countdown in town. For the first time, it was staged along the strip of BGC’s Fifth Avenue between the new Philippine Stock Exchange (PSE) headquarters, One Bonifacio High Street Mall, Shangri-La at the Fort, and High Street Central.
Heavy rains did not dampen the BGC celebration, which could become an annual tradition and serve as Manila’s counterpart to the iconic ball drop at Times Square in New York City. It also signaled BGC’s emergence as the country’s premier financial district rivaling Ayala Avenue in Makati City, which has discontinued its New Year’s Eve countdown festivities since 2013.
Aside from the PSE, other financial institutions and some government agencies have transferred or are planning to transfer their main offices to BGC. In many cases, the site of a stock market is a magnet for investors and locators from both the public and private sectors. Classic examples are Binondo district in Manila, Ortigas Center straddling the cities of Mandaluyong and Pasig, as well as the Makati central business district.
Studies on stock market performance during presidential election years abound, but not for midterm election years. There has been no clear pattern yet judging from the last four midterms: local stocks declined in 1995 and 2001, while they rose in 2007 and 2013 based on the PSE index (PSEi) yearly returns.
However, major banks and financial services companies are generally more optimistic about 2019 compared to the previous year – despite the 12.8% drop of the PSEi year-on-year. Their bullish outlook is attributed to election year spending, declining oil prices, a deceleration in the inflation rate, and infrastructure buildup.
With regard to initial public offerings (IPOs), the PSE is poised to have several listings this year. In contrast, there was only one IPO in 2018 by way of D.M. Wenceslao and Associates, while San Miguel Food and Beverage had a follow-on offering.
Forthcoming IPOs in the pipeline include Del Monte Philippines, Cal-Comp Technology, Philippines Air Asia, Big Chill, Okada, Figaro’s parent company Camerton, HatchAsia, and WAV Media.
Elsewhere in Southeast Asia, Vietnam was the top grosser last year with total IPO proceeds of $2.6 billion, followed by Thailand at $2.5 billion and Indonesia at $1.2 billion. Perennial topnotcher Singapore plunged to fourth place with only $500 million.
After the PSEi’s 12.8% year-on-year retreat to bear territory in 2018, there’s no way to go but up for the Philippine equities market in the current election year.

J. Albert Gamboa is CFO of the Asian Center for Legal Excellence and Chairman of the FINEX Media Affairs Committee’s Golden Jubilee Book Project.

Manager seeks mercy for a dishonest worker

January 4, 2019 | 12:01 am

A department manager went directly to our CEO to ask for forgiveness for his worker who was caught in an act of dishonesty, a grave offense. After being given due process, the worker was found to have violated company policy and a penalty of dismissal was handed down by the Human Resources and a Management Committee (Mancom) composed of other department managers. The CEO consulted the HR Head who advised him about the repercussions of a decision favoring the worker whose wife is suffering from cancer. Also, the Mancom was displeased to find that it spent much time deliberating the case only for the decision to be reversed. I am concerned that the incident will set a bad precedent. What can we do about it? — Danny Dilemma.
There was a mentally-impaired young boy seated on the floor of a supermarket who began to play with some bottles of expensive product he had taken from the shelves. The merchandiser saw him and shouted at him at the top of her voice. Then she raised her voice even further, not realizing that the boy’s elder sister was nearby.
Just then, the sister came up, put her arms around the little boy and whispered in his ear. Right away, he put the bottles back. “You see,” the sister explained, “He doesn’t understand when you talk to him like that. We only have to put love into our message to him.”
Few of us respond to being scolded, pushed, driven or harassed into submission, even if they come from a person in authority. The medium is the message. The message doesn’t matter if it is directed to a person, including those who are on the wrong side of the fence. It’s not just the message, but the delivery matters as well. Communication is more than words. Equally important is how we say those words to people.
How does this affect all concerned — from the CEO, to the members of the Mancom, HR and down to the general populace? It depends on how much or how little management practices and policies have been altered in the past. And you may have wondered how you can go on with the changes, particularly if it’s the CEO who is bent on forgiving the worker.
With more responsibility being delegated down to the line managers, the bottom line for both the present and the future should be treat every employee with respect and dignity. Therefore, to answer your question, here are the things that you can do, if and when the CEO finally decides to forgive the worker:
One, clarify with the CEO what he means by his forgiveness. Does it mean allowing the worker to simply resign as if nothing happened? Or would that mean total forgiveness and the preservation of his job? Does it matter that the worker has a spouse with a serious illness? Would that establish a bad precedent? How would you handle a similar case in the future?
Two, earn respect and continue to build it over time. Managers whose decisions are overturned by the CEO would normally fear losing their credibility. But not necessarily in this case. In fact, managers who stand their ground with the CEO will be much more respected than yes-men. There might be resentment at first, or perhaps fear, but if these managers handle themselves with dignity, being overruled by the boss means nothing.
Three, fight for the validity of the disciplinary policies. A single situation like this is not enough to render the company’s code of conduct useless. Indeed, it’s a touchy subject, but as long as the policies are not changed, you have no recourse but to follow the CEO’s decision, as he may have valid reasons to make that decision. Therefore, always contain your resentment. It’s much easier to handle the situation calmly.
Last, practice fairness, not favoritism. If there’s anything that alienates people, it’s the people managers who practice favoritism. This may be misinterpreted in the case of the manager who was probably influenced by compassion over the plight of the worker whose wife has cancer. And although he had his reasons, perception can sometimes overwhelm reality.
Nevertheless, the decision of the CEO, no matter how unjustified it is, should not deter all similarly-situated managers from pursuing similar action following the company’s rules and regulations. Just make sure that you let it be known to all concerned that it’s performance, not the popularity or unpopularity of a decision, that is being recognized.
There may still be a couple of people who will grumble about the CEO’s decision, but over time, it’s the managers who were fair to everyone will be viewed as having did their jobs.
Ultimately, it is the forgiven worker who must suffer the indignity of facing his colleagues.
ELBONOMICS: Mistakes are forgivable if one has the courage to admit it.

Send feedback or workplace questions to elbonomics@gmail.com or via https://reyelbo.consulting.
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PAL seeks Saudi Arabia overfly permit for direct route to Israel

January 4, 2019 | 12:01 am

MANILA/TEL AVIV — The Philippines has requested permission for its flag carrier to overfly Saudi Arabia en route to Israel, the company president said, seeking to become the second airline to win such rights after a decades-long ban by Riyadh.
Should Philippine Airlines get an overflight permit, which would save on flight time and costs, it could launch direct service to Tel Aviv within six months, airline president Jaime Bautista said on Wednesday.
“The Civil Aeronautics Board wrote to Saudi authorities asking for overflight (rights),” Mr. Bautista told Reuters. “A letter was sent in October.”
Last March, Saudi Arabia opened its airspace for the first time to a commercial flight to Israel for an Air India route between New Delhi and Tel Aviv.
Saudi Arabia does not recognize Israel and the move ended a 70-year-old ban, marking a diplomatic shift as Israel attempts to reach out to Gulf Arab states that share its concern over Iran’s regional activities.
There is no indication any Israeli airline will be granted similar rights.
Israel’s flag carrier El Al, which must take more circuitous paths to avoid Saudi Arabia, has asked the International Air Transport Association, an airline industry lobby group, to help it gain access to Saudi airspace.
Direct Philippines-Israel flights would be welcomed by the thousands of Filipinos employed as care workers in Israel, and tourists heading in either direction. The number of tourists visiting Israel from the Philippines rose by 61% in 2017, and tourism in the other direction rose by 42% in 2016.
Philippines’ Department of Transportation Undersecretary Antonio Tamayo told reporters last month that his country has landing rights as far as Israel is concerned.
“This is the result of the visit of the (Philippines) president to Israel (in September),” he said.
Failure to secure a permit from Saudi Arabia would add more than an hour to the flight time, he said.
Officials at Israel’s Tourism and Transportation ministries were not immediately available for comment. — Reuters

Singer Jimmy Osmond suffers stroke during UK performance

January 4, 2019 | 12:01 am

LONDON — US pop singer Jimmy Osmond, who performed the chart-topping hit “Long-Haired Lover from Liverpool” as a child in 1972, has suffered a stroke and will take time away from the stage, a spokesperson for the singer said on Monday.
Mr. Osmond completed a performance of the Peter Pan pantomime on Dec. 27 at the Birmingham Hippodrome theater in central England before he was driven to hospital and diagnosed with a stroke, the representative said in a statement on the theater’s Web site.
Mr. Osmond, now 55, was the youngest sibling in The Osmonds family troupe and became the youngest person to reach number one on Britain’s singles charts with the release of “Long-Haired Lover from Liverpool” when he was aged nine.
“He is grateful for all the well wishes and will be taking time out in the new year,” the spokesperson said. — Reuters

Agriculture trade deficit widens amid rice, fish imports

January 4, 2019 | 12:01 am

By Lourdes O. Pilar
Researcher
THE trade deficit in agriculture commodities widened in the third quarter as agriculture exports fell while imports grew sharply, the Philippine Statistics Authority (PSA) said.
The PSA said the Philippines shipped out $1.687 billion worth of agricultural goods in the three months to September, down 4.34% from a year earlier.
Meanwhile, imports of farm products rose 15.48% to $3.536 billion.
As a result, the third-quarter deficit in agricultural commodities was $1.850 billion, up 42.38% from a year earlier.
The agriculture sector accounted for 10.79% or $5.223 billion of total trade worth $48.397 billion in the third quarter.
“The latest increase in the country’s foreign trade in agriculture may be partly attributed to increased imports of rice and other agricultural commodities (after experiencing some local supply shortages in cheaper NFA rice, sugar), as part of the government’s non-monetary measures to improve the local supply of rice, fish, sugar, and other food/agricultural products, in an effort by the government to lower rice/food prices in the local market and better manage the country’s overall inflation,” said Michael L. Ricafort, economist from the Rizal Commercial Banking Corp. (RCBC).
“A bigger agriculture trade deficit for the country, especially due to increased importation of rice/cereals, sugar, fish, other food/agricultural products, is primarily meant to augment local supply to address some shortages of cheaper varieties of rice and other food items and lower prices/inflation, as part of the government’s non-monetary measures to better manage inflation,” Mr. Ricafort added.
Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines (UnionBank), said: “This increase [in total agricultural trade] can be attributed to the uptick in imports to address supply issues particularly rice and other basic food products, and, consequently, address heightened price levels in the last 10 months of 2018.”

How PSEi member stocks performed — January 3, 2019

January 4, 2019 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, January 3, 2019.

Philippine Stock Exchange’s most active stocks by value turnover — January 3, 2019

PNP tags Daraga mayor in Batocabe’s murder

January 3, 2019 | 11:58 pm

By Vince Angelo C. Ferreras
THE PHILIPPINE National Police (PNP) has tagged Daraga, Albay, Mayor Carlwyn Baldo as the mastermind behind the Dec. 22, 2018 killing of Ako Bicol Representative Rodel M. Batocabe.
PNP chief Director-General Oscar D. Albayalde said the police has filed charges of double murder and six counts of frustrated murder against Mr. Baldo and six others at the Albay Provincial Prosecutor’s Office on Thursday morning, Jan. 3.
“Accordingly, the plan to assassinate Batocabe was hatched sometime in August 2018 when Batocabe announced in public his bid for the mayoral post of Daraga,” Mr. Albayalde said in a press conference on Thursday afternoon. “This was corroborated by Emmanuel Bonita Judavar who was involved in the initial planning but allegedly backed out during the actual assassination. Judavar earlier came forward and gave his knowledge to the police about the killing of Congressman Batocabe.”
Also implicated in the plot was Christopher “Tuping” Naval, identified as a security aide of Mr. Baldo, who surrendered to the police on Dec. 30, 2018. Another suspect, Emmanuel Rosello, identified as a former vigilante, was arrested in Daraga on Thursday morning.
Mr. Albayalde further disclosed in his press conference, “Later according to Tuping, Mayor Baldo allegedly offered P5 million for the hit job on Batocabe sometime in September 2018 and paid an initial amount of P250,000.00 to Tuping and his group for the purchase of guns and motorcycles.”
Mr. Naval allegedly formed a gun-for-hire team composed of former military and paramilitary personnel like him as well as New People’s Army rebels employed as staff of the Office of the Mayor. Each one of them received P7,000 monthly compensation, according to the police.
“According to Tuping and Judavar, the first attempt on Batocabe was during the congressman’s routine engagements at radio station DZJB and Hotel Venezia in Legazpi City, a pattern that was observed by the group in its casing and surveillance on Batocabe,” said Mr. Albayalde.
He added: “We consider (the case) as solved but not closed. Why? Because some of the suspects are not yet arrested so we will do everything to be able to arrest the suspects and we have also a letter submitted to DoJ for the issuance of a immigration lookout bulletin order for Mayor Baldo.”
On Thursday evening, Mr. Baldo held a press conference and read a statement saying in part, “I assert my innocence. Let us not forget that while I am being used as a convenient scapegoat, those who are truly responsible for the crime remain free and blameless.”
Mr. Batocabe and a police escort were gunned down at a gift-giving activity last Dec. 22.
For his part, Interior Secretary Eduardo M. Año said, “Let this, therefore, serve as a stern warning against all politicians not to intimidate, harass, or do violence against their political opponents in the forthcoming elections, otherwise the DILG-PNP will run after them and ensure that justice will be served. I have placed the PNP on heightened alert to monitor the activities of all candidates in the forthcoming elections.”
Presidential Spokesperson Salvador S. Panelo said: “Daraga, Albay Mayor Carlwyn Baldo, together with all others tagged as suspects of the aforesaid murder, will have their day in court where they can refute the charges hurled against them. While they too are afforded the constitutional presumption of innocence and consequently will be accorded due process, the government shall nonetheless prosecute them for the heinous crime without delay.”

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