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Moody’s sees little risk of problem loans despite rising rates

THERE SHOULD BE little risk of problem loans even as interest rates rise further, a global credit rater said, noting that policy adjustments can be expected to temper credit growth.
Simon Chen, senior analyst at Moody’s Investors Service, said Philippine banks will continue to thrive in the wake of back-to-back policy rate increases from the Bangko Sentral ng Pilipinas (BSP) and rising global yields.
“We do think that the rate increases will be gradual and modest, and so the adjustment to higher interest rates for households and corporates will be manageable,” Mr. Chen said in a media briefing at the Makati Shangri-la hotel yesterday.
“We do not think there will be significant asset quality pressures.”
Moody’s continues to hold a “stable” outlook for the Philippine banking system as it sees macroeconomic conditions remaining robust — hence, enabling loan growth to continue.
Benchmark borrowing rates have risen by a total of 50 basis points following tightening moves by the BSP’s Monetary Board in May and June, at a time the United States Federal Reserve has also raised rates.
While this means it will be costlier to borrow money, it will also result in bigger interest margins for banks.
“We do think when interest rates go up, that’s when banks will benefit with wider interest margins,” Mr. Chen explained.
“Underpinning our view for wider interest rate margins is we see banks are going more actively with the retail loan portfolio which are higher-yielding.”

To add, Moody’s senior credit officer Christian de Guzman pointed out that the BSP’s rate hikes should help temper currently rapid bank lending growth, which in turn “alleviates” concerns that the economy may be overheating.
Bank lending grew by 19.9% as of end-April, sustaining double-digit increases seen over the past few years.
“We do see that there is going to be a tightening in financial conditions… There are perhaps upside pressures that they (BSP) may be likely to raise rates further. I’m hesitant to say that they are behind the curve,” Mr. De Guzman said, noting that there may be a narrowing space for central banks to “deviate” from the Fed’s moves.
Another source of optimism is the sustained level of dollar reserves, which Moody’s said provides comfort in the face of global financial uncertainties even as the country’s current account has reversed to a narrow deficit.
A market-determined exchange rate regime is also “positive” for the country’s external position, Mr. De Guzman added.
Moody’s expects three rate hikes from the Fed this year and another three increases by 2019.
Southeast Asian economies, including the Philippines, are unlikely to be “vulnerable” to a higher interest rate regime.
Any succeeding rate adjustment from the BSP is likely to remain data-driven and will not result in a bigger stock of soured debts.
Non-performing debts held by big banks had a 1.32% share against total loans as of end-April, according to BSP data.
Meanwhile, Mr. Chen said banks can also draw returns from a digitization push that will help them capture a bigger market. He noted that while near-term gains from increased efficiency in using digital channels will be “muted,” the longer-term benefits should be substantial. — Melissa Luz T. Lopez

Ty’s GT Capital to invest up to $200 million in Japan’s Toyota

By Arra B. Francia, Reporter
GT Capital Holdings, Inc. is making its first offshore investment, as it buys up to ¥22.2 billion (around $200 million or P10.7 billion) worth of shares in Japanese auto giant Toyota Motor Corp.
In a disclosure to the stock exchange on Thursday, the holding firm of tycoon George S.K. Ty said it will acquire the Toyota shares on the Tokyo Stock Exchange based on prevailing rates on the date of purchase. It took out a Japanese yen-denominated loan to fund the purchase of shares, which is now ongoing.
GT Capital has a long-standing partnership with Toyota in the country. The two companies own Toyota Motor Philippines (TMP), where the Japanese firm has a 49% stake.
GT Capital Head of Investor Relations Jose B. Crisol, Jr. said the conglomerate took into account the opportunities and positive outlook for Toyota when deciding to make the investment.
“It’s opportunistic because Toyota Japan recently announced the share buyback program so we feel it’s a timely opportunity to take a position in that because numbers show that Toyota Japan is a very good investment in terms of share price valuation, P/E (price-to-earnings) and price-to-book are all very attractive,” Mr. Crisol said in a phone interview on Thursday.
He noted there is a consensus among key research reports that there will be some price appreciation on the stock, in addition to the amount of dividend yields.
Toyota is the fifth largest company in the world in terms of revenues. In its fiscal year ending March 2018, the auto giant reported that it sold 8.96 million vehicles in the world, translating to net revenues of ¥29.38 trillion.
Mr. Crisol added the listed conglomerate would like to participate in Toyota’s current initiatives, given that it has also been partners in TMP for more than three decades.
“It’s strategic because Toyota has a global shift in initiative from simple vehicle sales to what they call mobility. So it’s a more comprehensive transportation initiative and we want to participate in that, we want to become stronger strategic partners. We want to participate in their evolution,” he said.
Asked whether there are ongoing discussions to further increase GT Capital’s stake in Toyota beyond purchasing from the open market, Mr. Crisol said there are none at the moment.
Once the investment is complete, Mr. Crisol said GT Capital’s ownership in Toyota will be minimal at less than 0.1%. Toyota is valued at $3.2 billion.
Aside from the automotive industry, GT Capital also has core interests in banking, property, infrastructure, and insurance.
GT Capital saw a 29% rise in core net income to P15 billion last year from P11.7 billion in 2016, on the back of a 19% increase in consolidated revenues to P239.8 billion.
In 2017, TMP’s net income jumped 11% to P13.4 billion, as sales went up 16% to 183,908 units.
Shares in GT Capital jumped 1.69% or P15 to close at P900 each at the stock exchange on Thursday.

Swedish company AAK to build customization plant in Batangas

SWEDISH company AarhusKarlshamn (AAK) is building a customization plant in Batangas, the first of its kind in the Philippines.
Michael Skriver, president for AAK Philippines, said construction of its first facility is set to begin by mid-August and expected to be operational by 2019.
“The whole idea is because since it’s a significant amount [of investment], we want to make a small factory that’s ready by the new year on some areas then we go for the big one (facility),” he said after the groundbreaking ceremony in San Pascual, Batangas.
AAK’s plant is being built on a land owned by oils and fats refinery San Pablo Manufacturing Co., which is under Coconut Industry Investment Fund-Oil Mills Group (CIIF-OMG).
The plant will customize and mix oils and fats into “value-added” ingredients which will be used for various products such as personal care, infant milk, confectionery and chocolates.
Mr. Skriver said the first facility, covering 3,000 square meters (sq.m.), will cater to the local food industry.
The second phase will involve the construction of a bigger factory, which will cover 5,000 sq.m. Mr. Skriver said the second facility can be used for export purposes, given the proximity of the location to the port.
“With this new operation, we will be able to better manage the local supply chain and the export markets. The Philippines is one of the fastest growing economy in Asia driven by strong, and domestic consumption in the country. With a fast growing economy the demand for speciality and semi-speciality edible oils in Philippines is expected to grow strongly,” Mr. Skriver was quoted as saying in a statement.
CIIF-OMG Board Chairman Eddie P. Delima said talks with the Swedish-based company only began in March, and the agreement was signed in May. This is CIIF-OMG’s first deal with a foreign company.
“Technically it’s their project (customization facility). Our purpose only is to let them occupy our premises… We also have a supply agreement that in terms of raw materials we have, the majority, the bulk of what edible oil, they will be getting it from us,” Mr. Delima said.
Mr. Delima said the company is willing to extend its other services to AAK through their existing operations.
“Once they have the special solutions, we can market also because we have marketing — through Minola network. We can carry also their products through the distribution. So it’s a symbiotic [relationship],” he added, referring to CIIF-OMG’s coconut cooking oil brand Minola. — Anna Gabriela A. Mogato

Resort operator’s sales plunge in May due to Boracay closure

BOULEVARD Holdings, Inc. (BHI) saw a significant drop in sales of products and services for the month of May, following the six-month closure of Boracay Island where the company operates a beach resort.
In a disclosure to the stock exchange on Thursday, BHI said sales of products and services plunged 81% to P1.7 million last May, compared to the P8.74 million recorded in the same period last year.
“Decrease in sales mainly due to six-month closure of Boracay, Malay, Aklan for rehabilitation effective April 26, and Friday’s Holdings, Inc. (FHI), which owns and operates Friday’s Boracay Beach Resort is one of the companies affected by the order of the national government,” the company said.
BHI is the parent firm of FHI.
On a 12-month basis, sales went up by 5% to P105.38 million, versus the P100.1 million posted in the same period last year.
The listed company said last April that the closure of Boracay will lead to a loss of P6.5 million in monthly revenues from April to October. This is in addition to P35 million it will spend on fixed costs and expenses for the upkeep of the resort for six months.
Prior to the island’s closure, BHI said it had already lost P22 million in advanced deposit cancellations from customers in China and Germany.
The government moved to shut down Boracay last April, following President Rodrigo R. Duterte’s description of the island’s waters as a “cesspool.” This week, the Department of Interior and Local Government has also filed a complaint against Aklan Governor Florencio Miraflores and 16 local officials for alleged negligence in managing the island.
BHI swung to an attributable loss of P1.77 million in the nine months ending February, versus a net income attributable to the parent of P2.02 million during the same period last year. This came amid an 11% rise in revenues to P79.37 million for the period. — Arra B. Francia

After 20 years, Workshy returns

BRITISH BAND Workshy, best known for the song “Never the Same,” and covering Carole King’s “It’s Too Late,” comes back to Manila after more than 20 years to promote the group’s newest album, Wayward, on Aug. 10 at the Theatre at Solaire Resort and Casino.
“We came to Manila in 1995. It’s hard to know what to expect really but we have fans our age and maybe we picked up a few younger fans,” Chrysta Jones, the band’s lead vocal, told BusinessWorld during a phone interview on June 27.
Workshy came into the industry with its unique blend of soul, funk and jazz in the 1980s and Ms. Jones considers Stevie Wonder and Burt Bacharach as some of their musical influences.
“We’ve been trying to create our own genre… [and] replicate [our influences] in our own kind of way,” she explained.
In 1989, the band released its debut album, The Golden Mile, which includes hits such as “In This Neighborhood,” which became a hit in Japan.
The band also found success in other parts of the region including the Philippines.
“People do like us particularly in those territories and I really don’t know why, but in the beginning, I think because of our European essence, it was slightly exotic,” Ms. Jones said.
Workshy started as a trio — Ms. Jones, Michael McDermott, and Kevin Kehoe. Mr. Kehoe left the band to pursue other interests in 1992.
Since starting out, Workshy produced 15 more albums including its latest, Wayward.
(For a YouTube video preview of the album, go to https://youtu.be/8eQY7rzUNBs.)
Ms. Jones said that she particularly liked the song “Where or Why” in the newest album because “it’s sort of what we’ve been like [all along].”
Three decades into the business, Workshy managed to maintain much of its signature sound, though Ms. Jones said they played a bit more electronic and unplugged in recent years, but all in all, it’s the same kind of instrumentation and the same kind of music the band is known for.
“We just continuously write better songs, better lyrics with better message,” she explained before adding the songs are uplifting and are supposed to touch one’s feelings.
The band is set to release another album — this time of covers — within the year, and, “hopefully,” said Ms. Jones, another original album next year.
Workshy Live in Manila is scheduled on Aug. 10, 8 p.m., at The Theatre at Solaire Resort and Casino in Parañaque City. Tickets, which range in price from P2,090 to P7,315, are available at TicketWorld (891-9999, www.ticketworld.com.ph). — Zsarlene B. Chua

GERI to open Twin Lakes hotel by yearend

GLOBAL-ESTATE Resorts, Inc. (GERI) on Thursday said it is on track to open the P1.5-billion Twin Lakes Hotel near Tagaytay by the end of the year.
The listed leisure and tourism estate developer said in a statement that Twin Lakes Hotel will be operated by Global One Hotels Group, the owner and operator of sister firm Megaworld Corp.’s homegrown Belmont and Savoy hotel brands.
Twin Lakes Hotel will rise within GERI’s 1,200-hectare Twin Lakes project in Laurel, Batangas. The 8-storey hotel will offer 126 rooms sized up to 72 square meters.
The hotel will have an all-day dining restaurant which will give guests a view of Taal Lake, an in-house spa, infinity pool, and a grand ballroom that can host up to 500 people.
“We envision Twin Lakes Hotel to be a perfect venue for weddings and celebrations. Aside from the unparalleled views of Taal Lake and Volcano, this is the only hotel in the Philippines that has an actual grape-growing vineyard at its backyard,” GERI President Monica T. Salomon was quoted as saying in a statement.
GERI is spending P4.5 billion over the next four years to continue the development of projects inside Twin Lakes. Since 2012, the company has spent P2.5 billion in the tourism estate, for a total expenditure of P7 billion in a span of 10 years.
Three residential condominiums have already been launched in Twin Lakes, namely The Vineyard, The Manor at Twin Lakes, and The Beldevere. There are also two residential villages within the estate called Domaine Le Jardin and Lucerne, offering a total of 838 lots.
Aside from GERI, tycoon Andrew L. Tan’s property firms include Megaworld, Empire East Land Holdings, Inc., Suntrust Properties, Inc., Richmonde Hotel Group International Ltd., and Bonifacio West Development Corp.
Incorporated in 1994, GERI was formerly called the Fil-Estate Land, Inc. before Mr. Tan’s acquisition of a majority stake in 2011. The firm was then relaunched using its present name as a company that will engage in integrated tourism estates.
Other estates under being developed by GERI are the Boracay Newcoast in Malay, Aklan, Eastland Heights, Southwoods City in Laguna and Cavite, Alabang West in Las Piñas, and The Hamptons Caliraya in Lumban-Cavinti, Laguna.
GERI generated P406.9 million in net income attributable to the parent during the first quarter of 2018, 25% higher than the P325.8 million it realized during the same period a year ago. This came amid flat revenues at P1.66 billion.
Shares in GERI went up a centavo or 0.84% to close at P1.20 each at the stock exchange on Thursday. — Arra B. Francia

K-pop idols versus food

By Cecille Santillan-Visto
THE WORLD is fascinated with food these days. Food blogs, cooking segments, and reality television shows centered on food prove that every gastronomic experience — even the vicarious kind — makes for great entertainment.
In Korea, premiere pay channel, tvN, has popularized the unique reality show genre where celebrities either have to go through the daily challenge of feeding themselves in some remote Korean province (Three Meals a Day) or stars run a Korean restaurant in an exotic Asian country (Youn’s Kitchen) or even grow and source the ingredients for their dishes (Food Diary).
While these tvN specials have their loyal followings, the friendly competition in One Night Food Trip is equally enjoyable to watch. The show wrapped up several seasons in Seoul but has spun off an international edition. Following the successful first Philippine segment with sister-and-brother K-pop idols, Sandara Park and Thunder who were paired against TV host Grace Lee and radio DJ Sam YG, the second season — which will air in July — features Nichkhun of 2PM and Alexander, formerly of U-Kiss, competing with cousins Danica Sotto-Pingris and Ciara Sotto.
One Night Food Trip has celebrities on a 48-hour food escapade in a chosen country. Teams are given various challenges which they need to overcome in order to win stamps. There are also missions that — if successfully hurdled — will give the duo a chance either to gain a certain advantage or to throw a curve ball at the other team. The team with the most stamps by the end wins.
In an exclusive interview with BusinessWorld, Nichkhun and Alexander said they are perfect for the variety show as they are both adventurous when it comes to food.
“I am pretty open when I’m eating. The only thing that I wouldn’t eat are bugs or some things that don’t look good, but when it comes to taste, I am open for any type of taste,” said Nichkhun, one of the vocalists of six-member band 2PM.

The Thai singer-model-actor, who also clinched a modeling contract with a major Philippine clothing brand in 2013, admitted he was initially worried he would not be up to the tasks as he is “not a big eater.”
“I was worried I am not going to be a big help to my teammate. But once I got here, my stomach just opened up… The food just kept going in and it was great,” he said. In a bid to take in more food, he said he and Alexander did “stomach exercises” almost every meal.
For his part, Alexander, who has become a household name in the Philippines thanks to the prime time romantic-comedy series, My Korean Jagiya, said he has a penchant for trying appetizing local food in every country that he visits.
“Koreans usually go to other countries to try Korean food or prepare their own food, like ramyeon (noodles) but for me, I like to try local food whenever I go to every country,” the 29-year-old Korean-Chinese-Portuguese actor said.
During his six-month stay in the Philippines, he has grown fond of some local fare, with sinigang topping his list of favorites.
The two K-pop stars noted that while they had visited the Philippines several times in the past, it was only during the filming of this show that they were given the chance to truly experience fun in the Philippines.
OTHER CUISINES
One Night Food Trip is not just about the idols and Filipino food. Since it is an international edition of the show, the episodes will show Alexander and Nichkhun, as well as Sotto ladies, sampling special dishes from other countries, including Spanish delights.
Nichkhun revealed that during his five-day stay in the Philippines — which included several days in Cebu and Pampanga — he particularly liked Filipino food since its flavors made it feel like he was back home in Bangkok.
Although a fitness buff who consciously watches what he eats, Nichkhun cooks a mean pasta dish and has recently added Thai omelet to his repertoire. Lately, he has not been able to flex his muscles in the kitchen as much as he has been jet-setting from country to country for promotions and projects.
“I live alone so I don’t get to cook as much, and because I am always travelling, I can’t buy too many ingredients and I feel bad just to throw them away (if they spoil),” he said.
When asked about their advantage over the K-pop duo during a press conference, Ms. Sotto, a well-known pole dancer, said “it was easy” for her and Ms. Pingris, who has an online cooking show, as they are “close.” They also complement each other insofar as food preferences.
“I like spicy food but don’t like pork. What I don’t like, I give to her (Ms. Pingris),” said Ms. Sotto, who was ecstatic about her first visit to Coron where her team’s segment was shot.
FUTURE PROJECTS
Both Nichkhun and Alexander have movies under their belts. Alexander had 3 Peas in a Pod while more recently, Nichkhun’s Brother of the Year was a certified hit. The Thai rom-com has been making the rounds in Asia, most recently showing in Singapore.
“I hope that it will be shown in the Philippines. I think I hit a jackpot when I was filming this movie. I didn’t expect it to be huge. I just wanted the audience to like the story, to like our movie. They did like our movie and it became really successful and I am very happy,” said Nichkhun, who has been concentrating on his solo projects, including several charitable advocacies, while other 2PM members serve their mandatory two-year service in the Korean military.
“It’s always fun to work alone but it’s not the same when you are with your members because it’s just like you’re with your family. I enjoy doing work by myself and with the band and I miss them. I want them to come back soon,” he said.
Alexander, meantime, is working on an exciting “collaboration,” the details of which are still under wraps.
“Surprisingly, I told myself I will never do music again but I have a collaboration project and will return to the Philippines soon. It’s an album that it will allow my fans to see me onstage again,” he said.
Both Nichkhun and Alexander agreed that the journey to the Philippines is one of the memorable trips they have taken. It was exhilarating, one-of-a-kind, and challenging, to say the least. But they beat the odds and conquered the food.
One Night Food Trip International Edition 2 will begin airing on July 30 and every Monday thereafter on tvN.

A space prodigy

By Noel Vera
Movie Review
2001: A Space Odyssey
Directed by Stanley Kubrick
THE FIRST TIME I saw 2001: A Space Odyssey it was in a basement, in a projected 35 mm print. I was maybe 10 or 12 years old, had heard about the film, and was eager to watch.
Bored me out of my skull.
Seeing it again and again over the decades is like coming to know an old friend. You weren’t impressed at first, you learn to appreciate his best qualities, your growing admiration has been a part of your youth, adolescence, adulthood.
Now that you’ve seen him in full splendor — projected from a 70 mm print in all its unrestored glory, with flickers and scratches and cigarette burns and all — you realize you hardly knew him, or still have much to learn.
(WARNING! Plot — what little there is that’s comprehensible — closely and explicitly discussed)
To the opening fanfare of Richard Strauss’ Also Sprach Zarathustra (Thus Spake Zarathustra) the moon slides away from the Earth; over the Earth — like an eye opening, like electrodes in an arc lamp making contact, like an atomic candle ignited — the sun dawns. The sequence introduces film and director and, of course, theme: that powerful forces shape the confluence of planets and the destiny of their inhabitants.
We’re pulled down to Earth, literally. The wide screen drinks in unending Namibian landscape, suggesting a bleak expanse against which the camera locates (or rather stumbles upon) a family of hominids, scratching out food in the sparse grassland. Leopards hunt them, rival tribes drive them away; the hominids are weak and visibly dying and it’s only when a member of the group (Moon Watcher in the script, unnamed on film) picks up a thighbone and swings it — against prey, against fellow hominid — do their prospects improve. Moon Watcher roars in triumph flings his thighbone in the air —
And the film takes flight.
Moon Watcher’s bone in a single cut becomes one orbital spacecraft after another, sprouting dishes, bristling with antennae, groaning heavy with bomblike clusters ready to drop at moment’s notice (brief thrill recognizing an anachronistic Soviet star on one metal plate). Rising into the frame: the slim dart shape of the Orion lll, a Pan Am spaceplane, its sharp nose pointed at the great spinning wheel of the Space Station V. The plane is aimed like a toreador’s lance; the station turns like a Southern belle’s crinoline hoopskirt. Below is the blue of the Earth itself, a vast pellucid ballroom floor on which plane and wheel can waltz with joy.
Compare Stanley Kubrick’s to the smash ‘n’ grab fighters in Star Wars and its more acrobatic brethren — they’re the sleek and shiny future, but somehow feel weightless, unreal; they barrelroll into crisply digitized space that somehow lack depth. Kubrick’s spacecraft are real models hanging in (mostly) real space; they are meticulously researched to make sense — from the aerodynamic lines of the spaceplane (for cutting through Earth’s atmosphere) to the splendidly spinning station (for creating artificial gravity). More, they possess character, majesty — they don’t bounce around like so many pinballs making ridiculous whooshing noises (in vacuum?); they calmly defy gravity and soar.
Cut to Heywood Floyd (William Sylvester) and the contrast couldn’t be sharper. Outside the machines spin to glorious music; inside the humans make inane chatter against strikingly designed backgrounds (a window against which the Earth spins every few seconds; an upwardly curving white hallway (the inside of the station) populated by blood-red furniture). The climax to all this insipidity is a conference where Floyd addresses a group of scientists: they’re surrounded by wall-sized video screens, and while Floyd talks ominously of a discovery that “may well prove to be among the most significant in the history of science” the screens remain coyly blank, keeping Dr. Floyd’s secrets safely hidden.
I first saw 2001 decades ago on a 35 mm screen and was unimpressed, but one image did make an impact: the spaceship Discovery reaching from one end of the screen to another. Watching it recently the ship stretched twice as far, from one end of the theater to another. A spermatozoa trailing a metal spinal cord on its way to explore (Fertilize? Contaminate?) other planets? Or a hammer flung defiantly at the gods — yet another descendant of Moon Watcher’s flying bone?
Kubrick had earlier established a dichotomy: dance music for machines, near-complete silence for humans. Discovery was different; it traveled to the strains of Aram Khatchaturian’s doleful Gayane’s Adagio. Why melancholy, you wonder? Because a machine is traveling with humans, who are in control? Or because a machine is to be pitted against humans, with results that are less than certain?
On board are six crewmembers, though the film focuses on three (the remaining three are in cryogenic sleep): Frank (Gary Lockwood), Dave (Keir Dullea), and HAL 9000, the supercomputer with ubiquitous camera eyes, a seductive voice (by Douglas Rain), a soothing bedside manner.
Kubrick shows us everyday life on a ship; significantly we watch Frank view a birthday greeting from his parents with complete lack of interest, and later watch HAL beat him handily in a game of chess. HAL is graciously apologetic (“I’m sorry Frank I think you missed it.”) Frank typically grouchy (“Hmm. Looks like you’re right.”). If this were a reality show and Frank and HAL were candidates to be voted off into space (Wasn’t that a Doctor Who episode?) who would you choose?
On the other hand Dave and HAL have an odd exchange. Dave is sketching and HAL calls him over; HAL asks what he’s doing:
“A few sketches.”
“May I see them?”
“Sure.”
Of course HAL is probably programmed to show interest and engage the crew whenever he can, but what if he’s genuinely curious at this little skill of scribbling lines and smudges to create representations of things?
“That’s a very nice rendering, Dave. I think you’ve improved a great deal. “
The beautiful thing about Rain’s performance is that it’s so silkily ambiguous; you can hear all sorts of things in his line readings.
“Can you hold it a bit closer?”
“Sure.”
Do I hear jealousy?
“That’s Dr. Hunter isn’t it?”
And I may be stretching here — probably am — but the fact that Dave can scribble lines and smudges in such a way that even he — HAL — could recognize the pattern as a person he actually knew —
Was HAL curious about Dave’s powers of imagination and improvisation? Did he recognize a skill beyond his own capabilities and did he find it disturbing? Remember that right after this HAL brings up the subject of the mission objectives then reports the AE-35’s imminent failure. This, in effect, was the moment before HAL’s fall.
I wouldn’t call 2001 the greatest science-fiction film ever made. It doesn’t have Stalker’s profound sense of mystery (an alien force so powerful it ultimately has little to do with humanity itself), or Tarkovsky’s ability to make a simple Estonian landscape as strange as the far side of the moon. It doesn’t have The Incredible Shrinking Man’s elegantly structured story, or moment of transcendence done on a fraction of Kubrick’s budget (lines and smudges, representing someone). It doesn’t have Bride of Frankenstein’s sly sophisticated humor (the humor in 2001 is more ironic [Teutonic?] or sense of humanity (The Creature — an abused child if you like — confronts his Creator, developing along the way a moral sensibility).
But Kubrick’s film is great, and in 70 mm (projected on a really big screen or in Blu-Ray) an experience like no other. Still is, despite all the digitized and Marvel-ized wonders tossed at us along the way.
2001: A Space Odyssey was rereleased 70 mm print fromthe original negative this year in the US and UK. A 4K HDR Blu-ray will also be released later this year from Warner Bros. Home Entertainment.

Robinsons Bank offering LTNCDs

ROBINSONS BANK Corp. has started its offer of long-term negotiable certificates of deposit (LTNCD), which it plans to list on July 16.
At its investors briefing on Thursday, the Gokongwei-led lender said it began offering the first tranche of its peso-denominated LTNCDs yesterday, with the offer period set to end on July 9.
The instruments will mature in 5.5 years and carry an interest rate of 4.875% to be paid quarterly.
“Our application is to issue a total of P5 billion which can be done in one to two tranches,” Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte told BusinessWorld.
“That flexibility allows us that if we don’t reach the [amount] that we are happy, we can offer [another tranche] within a year to complete the P5 billion.”
Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”
Mr. Sarte said the proceeds of the fund-raising activity will be used to support the lender’s loan growth this year.
“As we project, our guidance will increase by about 30% in terms of assets. A lot of the asset growth will be coming from additional loans both in the commercial and consumer areas. That is really the reason why,” Mr. Sarte said.
“We’re ensuring that our leverage or liquidity coverage ratio will continue to be healthy so that we can continue to grow both lending out long with the LTNCD and the capital diffusion. That will strengthen our liquidity and funding sources.”
ING Bank N.V. (Manila branch) will serve as the sole arranger and bookrunner for the fund-raising activity. It will join Robinsons Bank as a selling agent.
In June 2017, Robinsons Bank raised P4.182 billion from its first-ever LTNCDs, more than the initial P3 billion offer size, on the back of strong demand.
Aside from the P5 billion Robinsons Bank is eyeing to raise, its parent companies, JG Summit Holdings, Inc. and Robinsons Retail Holdings, Inc. will infuse P3 billion in fresh capital into the bank next month. Broken down, JG Summit will inject P1.8 billion in additional capital and the remaining P1.2 billion will be from Robinsons Retail.
Earlier this year, Robinsons Bank signed a bancassurance deal with British life insurer Pru Life UK to bolster the bank’s product offerings.
The three-year partnership of Robinsons Bank and Pru Life UK is expected to generate approximately P40 million to P50 million in premiums in the first year.
As of end-2017, Robinsons Bank was 19th biggest commercial bank in asset terms with P103.1 billion, central bank data showed. — Karl Angelo N. Vidal

Labor dep’t expects more workers to be given regular status soon

THE Labor department said it expects more workers to be given regular status soon after it inspects companies it earlier warned about employment practices that amount to illegal contractualization.
“Various firms are now submitting their own regularization plans but still they are all up for inspection to ensure the rights of employees to security of tenure,” Department of Labor and Employment (DoLE) Secretary Silvestre H. Bello III said in a statement on Thursday.
The initial list of noncompliant companies which was submitted to Malacañang “made a huge impact on our campaign against illegal contractualizaton,” Mr. Bello said.
Companies that have pledged to ramp up their efforts to regularize their workers are Jollibee Foods Corp., Dole Philippines, and Philsaga Mining Corporation, who were part of a list of 20 companies with the most number of workers affected by labor-only contracting.
Other establishments have submitted their voluntarily regularization programs. DoLE said that SM Malls will regularize 10,000 of its employees by the end of the year while Century Pacific Food, Inc. will regularize 7,000 workers.
“We are expecting more regularized workers soon and I am optimistic that various establishments will comply with our directives. Also, inspections of establishments are ongoing to ensure their compliance with labor standards and existing labor laws,” Mr. Bello said. — Gillian M. Cortez

LBC acquires 4 cargo, remittance firms

LBC EXPRESS Holdings, Inc. (LBC) on Thursday said it is acquiring four remittance and cargo companies, which offer LBC services in Australia and Singapore.
In a disclosure to the stock exchange, LBC said its board of directors gave the green light to buy LBC Australia PTY Ltd., LBC Money Transfer PTY Ltd., LBC Express Airfreight (S) PTE Ltd., and LBC Aircargo (S) PTE Ltd. from Jamal Ltd.
“The acquisition is expected to benefit the Company by contributing to its global revenue stream,” it added.
LBC said it will pay $2.4 million in cash to acquire LBC Express Airfreight, which operates as a cargo company in Singapore; and $1.84 million to acquire LBC Australia.
It will purchase LBC Money Transfer for $194,535, and LBC Aircargo for $146,013. LBC Money Transfer is a remittance company in Australia, while LBC Aircargo is a cargo company registered in Singapore and operates a branch in Taiwan.
In March, LBC announced it acquired a 30% stake in Orient Freight International, Inc. for P218.88 million. Orient Freight engages in freight forwarding, warehousing, and customs brokerage businesses that has operations in the Philippines and in Southeast Asia. — Denise A. Valdez

Joe Jackson, patriarch of the US musical Jackson dynasty, 89

JOE JACKSON, the patriarch of an American musical dynasty who started his son Michael, daughter Janet, and the Jackson 5 on the road to stardom but also verbally and physically abused them, has died at the age of 89, his family said on Wednesday.
Jackson, who recently lived in Las Vegas, had been suffering from cancer, according to media reports.
Despite periods of estrangement from some of his 10 children, family members had been at his bedside in his last few days, his grand daughter Paris said.
“I will always love you!,” his pop star daughter La Toya Jackson tweeted on Wednesday. “You gave us strength, you made us one of the most famous families in the world. I am extremely appreciative of that, I will never forget our moments together and how you told me how much you cared. #RIP Joe Jackson.”
Grandson Randy Jackson Jr. tweeted, “RIP to the king that made everything possible!!! I love you grandpa.”
The Jackson family was often riven by legal battles, jealousies, money disputes, Joe’s philandering and unproven allegations of child molestation against Michael.
Joe was left out of the Thriller singer’s will when he died aged 50 in 2009.
John Branca and John McClain, the executors of Michael Jackson’s estate, said in a statement on Wednesday that Joe was “a strong man who acknowledged his own imperfections and heroically delivered his sons and daughters from the steel mills of Gary, Indiana to worldwide pop superstardom.”
Joe Jackson, who was born July 26, 1928, in Fountain Hill, Arkansas, had tried careers as a boxer and a guitarist with little success in the 1950s. He was working as a crane operator at a steel plant in Gary, Indiana, when he took note of the musical and dance talents of his sons.
He called them the Jackson 5 and, with Michael as the precociously talented lead singer, they would become one of the world’s top acts with irresistible pop songs. But it came at a price.
As the group’s manager, Jackson put his sons through long, regimented rehearsals. Michael Jackson told Oprah Winfrey in a 1993 interview that he was so afraid of his father he would sometimes vomit when he saw him.
He said Joe presided over rehearsals with a belt.
“If you messed up during rehearsal, you got hit,” Michael was quoted as saying in J. Randy Taraborrelli’s biography. “Once he ripped the wire cord off the refrigerator and whopped me with it… I would fight back and my father would kill me, just tear me up.”
‘GLAD I WAS TOUGH’
“I’m glad I was tough because look what I came out with,” Joe Jackson said in a 2013 CNN interview. “I came out with some kids that everybody loved all over the world. And they treated everybody right.”
The Jackson 5’s big break came in 1967 when they won an amateur competition at New York’s Apollo Theater. Two years later, the father signed his sons to a deal with Motown Records, which put them in the company of acts such as the Supremes, Smokey Robinson, Stevie Wonder, the Temptations, and Marvin Gaye.
Michael’s singing, dancing, and charisma made him the focus of the group, which dominated the 1970s pop charts with No. 1 hits such as “I Want You Back,” “ABC,” “The Love You Save,” “I’ll Be There,” and “Never Can Say Goodbye.”
Joe Jackson eventually moved the family from Gary to a mansion in Encino, California.
In 1979, Michael broke from the group — as well as his father’s management — and went to even greater acclaim with the landmark albums Off the Wall and Thriller. His stylized videos became entertainment trendsetters.
Joe Jackson managed daughter La Toya when she started her career in 1980, and Janet, who Jackson helped launch to stardom in 1982. The children all eventually severed their management ties with their father but Janet paid tribute at the Radio Disney Music Awards last week, saying her “incredible father” had driven her “to be the best I can.”
In 2015, Jackson suffered a stroke, but despite bouts of ill health he continued to make appearances at celebrity events around the world. In March he released a pictorial book of memories called Precious Moments: 60 Years in Show Business.
Jackson and wife Katherine married in 1949 and had 10 children — one of whom died shortly after birth — but lived apart in later years. Jackson also had a daughter out of wedlock. — Reuters