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WeWork to open 1st Philippine hub

By Vincent Mariel P. Galang
NEW YORK-BASED co-working space provider is expanding in the Philippines with the opening of its first hub in Fort Bonifacio, Taguig City next month.
During its launch on Thursday, WeWork officials said the co-working space occupy two floors of Uptown Bonifacio Tower Three which can accommodate 800 members.
WeWork is targeting freelancers, start-up companies, local and multi-national companies, and micro, small, and medium enterprises (MSMEs).
Turochas Fuad, managing director of WeWork for Southeast Asia, said the company’s entry into the Philippines aims to “change and humanize and reimagine the way we work, how we live, and how we connect with one another.”
The Philippines is WeWork’s fourth market in Southeast Asia, after Singapore, Indonesia, and Vietnam.
“Besides the physical space… We spent a lot of resources and time to really develop a space that is not optimized for usage but really… to innovate and to really make people feel at home, at ease and make them a lot more productive, to foster innovation, but we realize that those things are also not that difficult for other companies to achieve. So the value that we added is the community and the ecosystem that we have developed for the last eight years. So, (we are) allowing the Philippine market to really tap into the global network that we have and vice versa,” Mr. Fuad said.
Amenities of a WeWork hub include community bars, phone booths, WiFi, and a beer tap. Also, the breakout areas will have Filipino-inspired designs.
“Typical amenities would include communal area… typical lunch pantry, coffee, water, internet is always on, 24/7, and we’re looking to have a beer tap as well… Its always part of our offering around the globe… not to encourage people to drink alcohol but it’s a way for people to get together, to mingle, and get around the pantry area… get to know each other better. Out of that, 70% of our members… they do collaborate with one another,” Mr. Fuad told BusinessWorld.
What sets WeWork’s space apart from other co-working spaces is that they make sure to put a local touch in its spaces.
“One thing in particularly very unique about this space is… we understand the Filipino culture. It’s a culture that adopts art, especially music, so we are actually putting a karaoke room with a drum set as a music instrument for people to really do bit of leisure stuff after work where they can sing together, they can play music together, and so on,” Mr. Fuad said.
Members can also enjoy an app where they can make bookings for any WeWork location, and check announcements of events. Using the app, members can keep track of how much time they are spending on each desk or in meeting rooms, and know if their clients or guests have arrived.
Founded in New York City in 2010, WeWork has 287 locations in 77 cities in the United States, Netherlands, Chile, Canada, Germany, Singapore, and South Korea, among others. The largest hub is located in New York City with 4,500 members.
By first quarter of 2019, WeWork is planning to open a hub in Makati City.
In Southeast Asia, WeWork targets to open their first hubs in Bangkok, Thailand, and Kuala Lumpur, Malaysia by the end of the year.

SMFB to raise public float up to 30%

SAN MIGUEL Food and Beverage, Inc. (SMFB) looks to hike its public float up to 30% in the next few years, following the conclusion of its P34.08-billion share sale last week.
SMFB President and Chief Executive Officer Ramon S. Ang answered in the affirmative when asked if he sees another follow-on offering (FOO) in the future, depending on market conditions.
“When market improves later on in the next few years, I think. We intend to offer more shares to the public, maybe eventually up to 30% public float. So plus 18%,” Mr. Ang told reporters after the listing ceremony of shares from its FOO at the Philippine Stock Exchange (PSE) on Monday.
The food and beverage giant said in a disclosure to the stock exchange last Friday that it sold a total of 400.94 million shares at P85 each, bringing its public float to around 12%, from 4.12% prior to the offering.
The share sale represents less than half of initial size of the offering at up to 1.02 billion common shares, consisting of 887 million shares plus an over-allotment option of up to 133.05 million shares. The final price was also below the maximum offer price of P140 the company’s issue managers has set.
“The valuation was given by bankers we hired, on account of the company’s market leadership, the profitability, and the sector, beer, food. If you look at the multiples, the pricing per share should be P140. But the reason why the price was lower because there’s this crisis,” Mr. Ang said in a mix of Filipino and English.
“But even at this economic situation we were able to go out, no one else has done so. Because of the company’s good reputation, even at this situation, we can still proceed,” he added.
SMFB will be using the funds to finance the construction of 10 breweries for its beer business, which would effectively double its capacity in the next three years.
Mr. Ang said the breweries will be located in Ilocos, Pangasinan, Sta. Rosa in Laguna, Negros, Cagayan de Oro, Bacolod, Cebu, and Sariaya in Quezon. Each will have a capacity to produce 2 million hectoliters each, for a total of 20 million hectoliters. This will be added to the company’s current capacity of around 22 million hectoliters.
The company earlier said each facility will cost $100 million, for a total of $1 billion for the entire expansion.
Asked on the company’s outlook, Mr. Ang said the beer and food businesses are poised to deliver double-digit growth this year, while Ginebra San Miguel, Inc. is on track to double its profit.
SMFB’s net income rose by a fifth to P15.4 billion in the first six months of 2018, following a 15% increase in consolidated revenues to P137.4 billion. It expects to generate P33 billion in earnings this year.
Shares in SMFB added 0.06% or five centavos to close at P85 each on Monday. — Arra B. Francia

EDC 9-month recurring profit drops 3%

ENERGY Development Corp. (EDC) reported a 3.1% decline in recurring net income to P6.4 billion for the nine months to September, the Lopez-led company said on Monday, in part as maintenance work increased its operating expense.
Nestor H. Vasay, EDC chief financial officer, said the company had about P3.8 billion in additional operating expense that was mainly driven by some of its plant maintenance and well work-over activities.
“But we expect our OPEX (operating expense) to go down, as we had implemented a number of operational and other efficiency initiatives across the company,” he added.
In the same period last year, the company recorded P6.6 billion in profit attributable to equity holders of the parent firm. The company did not immediately disclose third quarter figures.
EDC, the country’s largest geothermal and wind energy company, registered consolidated revenues of P27.7 billion for the January-September period, higher by 13% compared with the level a year ago.
“Our Unified Leyte plants had fully recovered from the impact of Typhoon Urduja, with generation volume pretty much catching up with what we had posted during the same period in 2017,” Mr. Vasay said.
“Generation volume for the rest of the fleet had also gone up, with Bacman, Tongonan and Palinpinon all registering volume growth of at least 15%. Our Burgos Wind Farm also posted a 21% increase in volume, keeping us on track to potentially surpassing its record performance last year,” he added.
EDC, which delivers 1,472 megawatts (MW) of renewable energy to the country, said its financial position stayed strong with cash balance of P19.3 billion. It said it had maintained a comfortable gearing level with consolidated debt to equity of 0.98x and consolidated net debt to earnings before interest, tax, depreciation and amortization (EBITDA) of 2.46x.
The company’s end-September report comes after it concluded its voluntary delisting tender offer. It previously said that after the close of its tender offer period on Oct. 22, it had accepted and purchased a total of 2,009,107,731 common shares out of 2,040,006,713 public common shares at P7.25 each.
Almost 98.5% of the company’s public shareholders participated in the tender offer, it said.
Aside from its hydro, solar, and wind power projects, EDC provides energy through its 150-MW Burgos wind farm. Its nearly 1,200 MW in geothermal installed capacity accounts for 61% of the country’s total for the energy technology. — Victor V. Saulon

Pinoy graphic novel TRESE to become a Netflix series, but will air after 2019

TRESE, a crime/horror graphic novel about a detective of the same name who solves supernatural crimes often in connection with creatures from Philippine mythology, will be getting its own Netflix treatment as the streaming giant announced that it will be adapting the novel into an animated series. But it will take a while before it gets on the small screen.
“We are extremely excited that TRESE will be adapted into an animated series by Netflix! To be able to share our stories and love of Philippine myth and folklore to the world is a dream come true! Even more thrilled that Jay Oliva is going to be our director since he’s worked on a lot of our favorite animated movies!” Budjette Tan, who wrote the graphic novel series, told BusinessWorld in an interview by Facebook Messenger on Nov. 9.
TRESE — which is written by Mr. Tan and drawn by Kajo Baldissimo — is set in a Manila where the mythical creatures of Philippine folklore live in hiding amongst humans, Alexandra Trese finds herself going head to head with a criminal underworld comprised of malevolent supernatural beings.
The announcement was made during Netflix’ See What’s Next Asia conference on Nov. 8 and 9 in Marina Bay Sands, Singapore.
TRESE is one of five new animated series to be produced by Netflix from the region. Among the new animated projects are the animated adaptation of the Netflix Original show Altered Carbon and an animated spin-off of Guillermo del Toro’s Pacific Rim.
The Filipino graphic novel’s anime treatment will be produced by Jay Oliva, a Filipino-American storyboard artist and animated film director for DreamWorks Animation, and Shanty Harmayn and Tanya Yuson of BASE Entertainment, a studio based in Jakarta and Singapore.
“BASE Entertainment was the one that worked very hard to pitch and convince Netflix to pick up TRESE and we are very happy that the people at Netflix were impressed with the work, enough to give us the green light to make it into an animated series,” Mr. Tan said.
Although the announcement that the TRESE animated series was going to be made, Robert Roy, VP for content acquisition, clarified in a separate press conference a day later that Netflix is still working on the series as they are “not going to rush it,” to make sure that they give justice to the source material.
“I don’t think it’s going to be in 2019,” Mr. Roy said of TRESE’s premiere.
“We’ll get to meet up with Jay Oliva and the rest of the team soon. So, we’ll definitely talk about how to best adapt TRESE into an animated series! And it’s good to know that Netflix has also put a lot of trust in the creators and the creative team to deliver their best work. They believe in getting to do the right thing instead of getting it ‘right now’ and we agree with that as well,” Mr. Tan said. — Zsarlene B. Chua

Google opens operations center in BGC

GOOGLE recently opened its first operations center in the Philippines, which will service its users and advertisers within the country and overseas.
Google Services Philippines is described as playing a “key role” in Google’s technical and operational support infrastructure. It provides a wide range of services for select markets such as customer service, quality assurance, and sales activities.
“This expansion is an answer to the rising need for a center for operations excellence in a digital economy, which the Philippines can clearly provide. This new office helps us engage better with our users, partners and advertisers around the world. At the same time, we want to help accelerate the growth of the tech services industry in the country,” Griffin Golamco, director and site lead for Google Services Philippines said in a statement.
The Google Services Philippines office is located across the company’s current office building in Bonifacio Global City, Taguig.
“Over the last three years, we’ve welcomed new Google products and services to the Philippines and have seen a flourishing creator and developer ecosystem. These emphasized the country’s growth as a developing digital market and an important player in Google’s operations infrastructure,” Google Philippines Country Manager Ken Lingan was quoted as saying in a statement.
BusinessWorld earlier reported that the Google operations center’s employees will provide support, ranging from troubleshooting issues to advertiser assistance for its products.

Gov’t fully awards T-bills on steady rates

By Elijah Joseph C. Tubayan, Reporter
THE BUREAU of the Treasury (BTr) fully awarded P15 billion worth of government securities on Monday with relatively flat yields across the board, as the market expects inflation to have peaked last quarter.
The government raised P15 billion as programmed from its Treasury bills (T-bill) auction yesterday, with total tenders reaching nearly twice the offer at P28.64 billion.
Broken down, the BTr awarded the programmed P4 billion in 91-day debt papers, which saw tenders reaching as much as P6.86 billion. Average yields were 9.5 basis points (bp) higher at 5.172% from 5.077% in the previous auction.
Meanwhile, it borrowed P5 billion from the 182-day T-bills, with bids reaching double the offer size at P10.278 billion. The papers fetched an average rate of 6.245%, 1.2 bps higher than last auction’s 6.233%.
The government also raised P6 billion as planned from one-year papers as the offer was almost twice oversubscribed, with tenders reaching P11.503 billion. The papers saw their average yields rising by 1.5 bps to 6.521% from 6.506% last week.
According to the PHP Bloomberg Valuation Service (BVAL) Reference Rates, the 91-, 182- and 364-day papers were quoted at 5.227%, 6.005% and 6.523%, respectively, yesterday.
National Treasurer Rosalia V. De Leon said the market expects inflation to slow down in the succeeding months, based on the greater demand seen for the longer-dated tenors yesterday.
“It’s a very healthy auction. We saw rates really flat that the rates plateaued for both the 182 and 364. So very marginal, 1.5 to 1.2 basis points increase over last week’s auction, and it’s aligned with the secondary market BVAL rates,” Ms. De Leon told reporters after the auction.
“This just shows that for the market, they see inflation has really already flattened. It has plateaued,” she added.
Inflation stood at 6.7% in October, steady from the previous month, but still a nine-year high. The month-on-month figure, however, slowed to 0.3% from 0.9%.
Traders also noted that there is more evidence that inflation will slow further towards 2019, as forecasted by local authorities.
“We see inflation already easing, especially in food. World crude is also going down, and also the peso strengthening. There seems to be no upward pressure on inflation moving forward,” a trader said in a phone interview.
The trader added that due to prospects of easing inflation, the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board will likely hold off on further tightening moves in their policy meeting on Thursday.
“We see the central bank pausing for now,” the trader said.
A BusinessWorld poll showed economists split on the BSP’s policy stance this week, with six of the 11 polled expecting steady interest rates and five seeing at least a 25-bp hike.
The Monetary Board has raised benchmark rates by a cumulative 150 bps since May.
Another trader shared the same sentiment, noting that the 6.1% economic growth performance in the third quarter strengthens the case for keeping policy rates steady.
“The auction was expected. Bidders were locking in with just about the same rates as last week as they see the BSP to hold in the next meeting. As you see inflation has seemed to start its decline, and that the GDP (gross domestic product) growth is at the low-end of the government’s target so they may consider that,” the second trader said in a separate phone interview.
The Treasury is raising P270 billion from the domestic market this quarter through auctions of securities, offering P180 billion in T-bills and another P90 billion in Treasury bonds.
“As far as our funding program is concerned, we are on track,” Ms. De Leon said yesterday.

Century City Mall is newest P2P stop

CENTURY CITY Mall in Poblacion, Makati is the newest service stop of premium point-to-point bus (P2P) services coming from Alabang and Bonifacio Global City (BGC). The Century City Estate Association and RRCG Transport launched last Nov. 6 the new service route from Alabang Town Center (ATC) in Muntinlupa City to Century City Mall. The RRCG P2P bus service is available Monday to Friday, departing from ATC at 7 a.m. The bus leaves Century City Mall at 6 p.m. A one-way fare is P100. There are plans to launch a BGC-Century City Mall route within the month. “We are one with the P2P Alliance’s advocacy of providing convenience to our residents, tenants and visitors at Century City by encouraging more car users to shift to taking quality and yet environment-friendly mass transport… We look forward to hosting more P2P services soon in Century City from other destinations,” Joseph Bryan Celestina, general manager of Century City, said in a statement. Century City, developed by Century Properties Group, has four residential towers — Gramercy Residences, Knightsbridge Residences, Milano Residences and Trump Tower Philippines.

Pilipinas Shell earnings fall in July-September

PILIPINAS Shell Petroleum Corp. reported a 28.3% fall in net income in the third quarter to P1.75 billion from P2.44 billion a year ago despite a double-digit growth in net sales, the company’s financial report showed.
Net sales rose 40.3% to P57.77 billion from P41.19 billion, although cost of sales pulled down gross profit by 5.3% to P6.4 billion from P6.76 billion.
“We are proud of Pilipinas Shell’s resilience amidst the challenges of higher inflation and weaker peso,” said said Cesar G. Romero, the company’s president and chief executive officer, in a statement.
For the nine months to September, Pilipinas Shell posted an 8% increase in net income to P7.2 billion, from P6.63 billion in the same period last year, which the company attributed to its marketing businesses.
“[The company’s] marketing businesses continue to deliver robust earnings, amidst high inflation in the country and higher global oil prices,” it said.
“The manufacturing and supply chain segments benefit from inventory holding gains and improvement in refinery reliability despite continued challenges in regional gross refining margins,” it added.
The company said it had opened 25 stations during the three quarters of the year, keeping it on track to meet its commitment of a total of 50 to 70 new sites each year. As of end-2017, it had 1,044 stations. — Victor V. Saulon

Italian film fest presents the classic and the new


FOR ITS second year, the Italian Film Festival — which brings a selection of films from the Venice International Film Festival to be shown in Metro Manila — is showcasing nine films from Nov. 14 to 18 in select cinemas.
The nine films are:
Love and Bullets (2017), directed by Antonio Manetti and Marco Manetti. This is a musical comedy about a hired killer and his target who then rediscover the love they had when they were younger.
“The genre of the musical has allowed us to go over the top, tackling the profound and important themes like love and death while maintaining a light and spectacular tone. We are not aiming for realism, but plausibility. In order to believe in the story we are telling, we like to take real characters, whom we have met in real life, and set them in the fanciful frame of an exaggerated tale,” the directors said in a press release.
Ugly Nasty People (2017) by Cosimo Gomez, meanwhile is an action/comedy about four people who hope to pull off a heist that will change their lives forever — no matter that one has no arms, the other has no legs, another is a drug-addict, and the final member of their motley crew is dwarf rapper.
“The underlying theme of [Ugly Nasty People] is equality. The whole film revolves around the ‘rule’ that any human being can be cynical and ruthless regardless of his or her appearance,” Mr. Gomez was quoted as saying in the release.
Cinderella and the Cat (2017) by Alessandro Rak, Ivan Cappiello, Marino Guarnieri and Dario Sansone, is an animated feature retelling the classic Cinderella — this time set in Naples. In this tale, Cinderella was raised on a ship docked in the harbor of Naples for over 15 years, living under the shadow of her wicked stepmother and stepsisters, while outside, the city grapples with decline and entrusts its entire future on a drug dealer.
“The story is divided into two acts: an age of light and one of ash. Past and present, fairy tale and reality, which, thanks to the wonder of a by now unused technology, find themselves living in the same place,” said the directors were quoted as saying in the release.
Hannah (2018) by Andrea Pallaoro is said to be an intimate portrait of a woman’s loss of identity after being left alone as a consequence of her husband’s imprisonment.
Hannah explores the inner torment of a woman in denial, trapped by her own sense of loyalty and devotion, paralyzed by her insecurities and dependencies. Hannah’s struggle touches me deeply, maybe because I sense how unforgiving the world can be towards her, or maybe because I see in her certain parts of myself,” Ms. Pallaoro said.
“More than anything, I wanted the world to see her, to sense her grief and to witness her struggle to define herself anew, alone,” she added in her director’s statement.
Emma (2017) by Silvio Saldini is about Teo, a man on the run from his past: his family, the women he slept with, and his responsibilities. He then meets the titular character, a blind woman who has not allowed her life to slide into darkness and who works as an osteopath. Teo and Emma embark on an affair without knowing that at the end of it, the two of them will never be the same.
“A few years ago I made a documentary with blind people. I came across people full of life and irony, who despite their handicap hold down jobs, practice sports, travel. Then I realized that I had never seen any of this in cinema… so I decided to make a film of a love affair with a blind person as it happens in real life,” Mr. Saldini said in the statement.
Red Desert (1964) by Michelangelo Antonioni is about a woman who, after a car accident, lives a life of depressive neurosis and how her husband’s friend tries to help her get out of her solitude by embarking on an affair with her, which only led to deepening her depression.
“I tried to squeeze every last drop of narrative force out of the color so that it would be in keeping with the spirit of every scene, of every sequence,” Mr. Antonioni, considered one of the most significant Italian film directors of the post-war period, was quoted as saying in the director’s statement of the press release.
1900 (1976) by Bernardo Bertolucci, is a historical drama about two childhood friends in northern Italy during the early 20th century who drift apart as adults as their values find them directly in conflict.
“For me [1900] is a microcosm… a tiny region of Italy much enlarged and thus is some ways made — horrible word — universal,” Mr. Bertolucci said in the release.
The Leisure Seeker (2017) by Paolo Virzi is a heartwarming drama about a couple — the wife has cancer while the man has dementia — that tries to escape a destiny of medical care that would have kept them apart forever by traveling in their old RV through an America they no longer recognize.
“[In the film] I tried not to give up the habits of a director born in Italy, using the ingredients that I always cherish: truth, humanity, irony, the mixture of comedy and tragedy, comic misadventures and moment of pure joy. It seems to me that the outcome is a road movie about the freedom to choose every moment of your life, told with the simplicity of a song,” said Mr. Virzi in the release.
• And finally, A Family (2017) by Sebastiano Riso. The film is about a woman, Maria, who wants to create a real family and her partner who doesn’t.
“It was important that Maria was represented without extravagance, with due discretion, so as to communicate her fragility, but also her desire, which was torn and yet very strong to be a mother,” Mr. Riso said in his director’s statement.
Italian Cinema from Venice to Manila runs from Nov. 14 to 18 at the cinemas of Central Square in Taguig, Greenbelt 3 in Makati, and UP Town Center in Quezon City. Admission is free on a first-come, first-served basis. — ZBC

BSP eyes 25% exposure limit for banks

Chuchi Fonacier
BANGKO SENTRAL NG PILIPINAS (BSP) DEPUTY GOVERNOR CHUCHI G. FONACIER — PHOTO BY ASIA MICROFINANCE FORUM

By Melissa Luz T. Lopez, Senior Reporter
THE CENTRAL BANK is looking to introduce a new measure that will cap credit exposures of banks, as the regulator seeks to keep up with global standards on risks management.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier said authorities are eyeing the adoption of the 25% large exposures limit for Philippine banks, which forms part of the international Basel III framework.
“Our policy reform agenda for 2019 shall further embed effective risk management systems in banks through enhancements to our risk-based capital framework as well as the credit, liquidity and operational risk management standards,” Ms. Fonacier said in a speech before the membership meeting of the Chamber of Thrift Banks yesterday.
“As a means to improve credit concentration risk management in banks, the BSP intends to adopt the 25% Basel large exposures limit as part of our existing credit risk management guidelines.”
The standard seeks to protect banks “from traumatic losses caused by the sudden default of an individual counterparty or group of connected counterparties,” as their inability to pay could also put the lender in financial trouble, according to the Basel Committee on Banking Supervision.
While the measure is yet to be finalized, BSP Managing Director Lyn I. Javier said the proposal will “not be a hard blow” on the industry.
The central bank has so far imposed the risk-based capital adequacy ratio (CAR) minimum requirement, which stands at 10%. This is higher than the 8% international standard.
Latest available data show that big banks maintained a risk-based CAR at 15.87% at end-June.
Ms. Fonacier said the BSP is also looking to adopt upcoming Basel III revisions which outline a “standardized approach” for credit risk and operational risk,” which are expected to be implemented in 2022.
On the other hand, Ms. Fonacier said they are “open” to postponing the liquidity coverage ratio (LCR) requirement for thrift and rural banks that are subsidiaries of universal and commercial lenders.
The LCR mandates big banks to hold high-quality and easily convertible assets to cover their net cash outflows for a 30-day period. She clarified, however, that the 100% LCR for big banks as well as the 20% minimum liquidity ratio for stand-alone thrift lenders will take effect on Jan. 1, 2019 as scheduled.
Meanwhile, mechanics for reporting intraday liquidity positions are still in the works, she said.
Large banks are seen ready to comply with the Basel III standards as they are fully implemented next year, according to latest BSP data.

Shakey’s income rises 5% amid challenges

SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) saw a 5% profit increase to P138.52 million in the third quarter, according to a regulatory filing.
SPAVI’s revenues went up by 12% to P1.8 billion for the period.
This brought SPAVI’s net income for the first nine months of 2018 to P534.64 million, six percent higher year-on-year, after a 10% uptick in revenues to P5.49 billion.
SPAVI recorded same-store sales growth of five percent during the nine-month period, with the company noting a slight dip in the third quarter compared to the first half.
“Bad weather typically makes it difficult to for guests to come to our store, and this year’s rainy season seems to have been worse than the year before. Moreover, the inflationary environment in the Philippines has made consumers relatively price sensitive, hence the need for us to spend a bit more on value creating promotions,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said in a statement.
SPAVI opened five new outlets in the third quarter, for a total of 222 stores by end-September. The company said it remains on track to close the year with 228 stores in the country.
“Even amidst short-term pressures on consumer sentiment, we continue to make investments in our store network — increasing the number of outlets overall and accelerating our presence in second and third tier cities,” Mr. Gregorio said.
Shares in SPAVI slipped 0.2% or two centavos to finish at P10.18 each. — Arra B. Francia

4th season of Narcos evolves into a full show, Narcos:Mexico

ORIGINALLY intended as the fourth season of Netflix’s Narcos, Narcos:Mexico instead grew so big that executive producer Eric Newman decided to make it a companion series to the original and, as the title states, it will focus on the origins of Mexico’s drug war and its biggest drug lord, Felix Gallardo.
Set in the 1980s, the series will chart the rise of the Guadalajara cartel created by Miguel Angel Felix Gallardo (a former federal police officer) and his cohorts in order to ship heroin and marijuana to the United States. It was among the first Mexican cartels to work with Colombian cocaine mafias.
“We’ve always designed the show as this sort of extended universe in drug traffickers and one of the things you’ll see when you watch the show this season you’ll see the Colombian story exists simultaneous to this,” Mr. Newman said at the Netflix Narcos:Mexico panel on Nov. 8 which was part of the streaming service’s See What’s Next Asia conference held in Marina Bay Sands, Singapore.
The series will also focus on the Drug Enforcement Agency (DEA) agent whose persistence in uncovering the ring and putting Gallardo in jail sparks Mexico’s drug war.
Narcos:Mexico, premiering on Nov. 16, will star Diego Luna as Felix Gallardo and Michael Peña as DEA agent Enrique “Kiki” Camarena.
“[Gallardo] isn’t the stereotype of the drug dealer that we’ve seen before… [he’s] a guy that is much more of a businessman — this guy is one step ahead of everyone and he sees an opportunity and he takes it and before anyone takes a look, he already owns the system,” Mr. Luna told the media during the panel discussion.
“What I love about the series and writing of the series is the angle and perspective from which the story is told: we’re not telling the story about bad people, it’s not black and white,” he added.
Mr. Newman, on the same panel, recounted that in his original treatment of Narcos, he sought to present the people know the kingpins — Colombia’s Pablo Escobar and Mexico’s Gallardo — as the humans they were, with their motivations and their lives.
“You can’t have a character like Pablo Escobar and know him within two hours,” he said, noting that he first thought of the concept as a film before bringing it to Netflix which made a series out of it.
Mr. Luna said Narcos:Mexico will look at how Gallardo, in order to build an empire, got the support of the Mexican politicians, the police, and the military and on both sides of the US-Mexico border.
“I don’t like his business but what’s unique about this series is how different it is from the previous treatment,” he said, explaining that there are a lot of gray areas that have been explored in the series.
On the other side of the fence, Mr. Peña, who plays DEA Camarena, said his character “wanted justice more than anything and just [to] bring down the bad guys.”
“What works very well with the show is two people can watch it and have two very different experiences,” Mr. Newman said.
Mr. Luna reflected on the state of the drug war in his country and noted that “clearly the way we’re approaching decisions [regarding the drug war] is not the right way because it (drug cartels) keep growing — the market keeps growing, the violence keeps growing.”
“The system is bigger that these people (drug lords),” he added, before explaining that the world doesn’t get better if you put one drug lord behind bars and ensure he’s not going to get out because “a lot of criminals are wearing suits and are out there making decisions.”
Mr. Luna then said that he thinks the drug war could be won if the government realizes that, fundamentally, this is a health problem and hopes the series will encourage someone who “is in front a line of cocaine to think a little bit of what’s behind that line.”
Though Mr. Peña laughingly said that once “the line [of cocaine] is in front of you, it might be a little too late.”
Narcos:Mexico premieres on Nov. 16 on Netflix. — Zsarlene B. Chua