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ATI, shipping lines work to decongest port

ASIAN Terminals, Inc. (ATI) said international shipping lines have agreed to share vessel resources to help ease the flow of containers at the Manila South Harbor.
In a statement on Tuesday, the listed port operator said at least six shipping lines have already committed to help in hastening the removal of empty containers in the port.
“In a collaborative session on Tuesday hosted by ATI, major international shipping lines have agreed in principle to cooperate and share vessel resources to immediately evacuate empty containers from Manila and surrounding areas… For its part, ATI will dedicate ample resources to handle the requirements of the shipping lines to ensure quick turnaround time,” the company said.
The shipping lines were identified as CMA-CGM Group; T.S. Lines Ltd.; Evergreen Shipping Agency Philippines Corp.; Yang Ming Marine Transport Corp.; Wan Hai Lines Ltd. and Hyundai Merchant Marine (Philippines) Co., Inc.
The shipping firms, ATI said, agreed to conduct a weekly pullout of more than 10,000 twenty-foot equivalent units (TEUs) of empty containers from the port. These containers will then be recirculated to other Asian destinations.
“The idea is that after cargo discharge, the vessels docked at the port will load empty containers, regardless of which shipping line owns such container,” ATI Executive Vice-President William Khoury said in the statement.
The buildup of empty containers at the Manila South Harbor has caused delays in recirculation of containers, which impacts truck turnaround time and limits operational efficiency of the port. — Denise A. Valdez

Museum of Philippine Economic History: Displaying stories of trade, merchants, and old wealth

By Emme Rose S. Santiagudo
Correspondent

ILOILO CITY — Economics is not exactly an exciting subject matter.
But a museum showcasing economic history that has been set up in an 18th-century building originally owned by one of the country’s biggest trading firms at that time makes it interesting. And the Museum of Philippine Economic History, the first of its kind in the country, does not disappoint.
Located along Ortiz Street in Iloilo City, the museum houses artifacts, images, documents, and other items that depict the rich economic history and culture of Iloilo as well as the Philippine’s flourishing industries.
The recently opened museum — the third in the city since 2018 and the 25th nationwide by the National Historical Commission of the Philippines (NHCP) — is housed at the old Elizalde Building.
The building was originally owned by Ynchausti y Compania, of the Ynchausti family but by the late 1920s, Ynchausti y Cia came under the management of the Elizalde family, which eventually acquired it and renamed it Elizalde y Compania in 1936.
The Commission on Audit (COA) later bought the building and was used by various government offices.
In 2015, plans for the restoration of the edifice, considered one of the historical treasures of Iloilo City, were announced.
“This was a headquarters. This is where the ships came to the ports. They would unload here goods from Manila, Panay, and everywhere else, they would come through here. Aside from the fact that this was the heart for us — of our businesses — this was also the heart of trading, in a way, in Iloilo,” Nick Ynchausti, a representative from the family that originally owned the buiding, said during the museum’s launch last week.
He thanked everyone who pushed for and helped in restoring the building to its old charm.
Senator Franklin M. Drilon, who hails from Iloilo and initiated the project, led the inauguration and took pride in reminiscing over the “wealthy” history of Iloilo.
“It is only fitting that a museum of this kind is put up here in Iloilo City. A hundred years ago, Iloilo was known as the ‘Queen City of the South’ and was the center of commerce south of Manila at the turn of the 20th century. This Elizalde Building was one of the centers of economic activity in Iloilo that shaped the economic vigor of the country since the Spanish colonial times, and propelled Iloilo as a regional economic center up to the American period,” Mr. Drilon said.
A walk through the Museum of Philippine Economic History, with its 13 galleries, presents one with a close look at such industries as abaca, coconut, sugar, metals, textile, along with heirlooms from prominent business families.
“Now that we have this museum, the old Filipino families, after they see this, will be encouraged to display artifacts, documents, works which are just in their little bauls (trunks) or storage places. Now, they will have a place to display their artifacts,” Mr. Drilon said.
Other museums in the city include the Iloilo Museum of Contemporary Arts which was opened in 2018 by Megaworld Corp. at the Iloilo Business Park in Mandurriao District, and the National Museum’s Western Visayas Regional Museum which is located at the old Iloilo Provincial Jail.
All these, Mr. Drilon said, breathe new life into Iloilo’s growing economy and tourism industry.

Philam Life appoints new chief executive officer

THE PHILIPPINE American Life and General Insurance Co. (Philam Life) has named its new chief executive officer (CEO) effective next month after its current head announced his retirement.
In a statement on Tuesday, Philam Life said its Hong Kong-based parent firm AIA Group has appointed Kelvin Ang as its local unit’s new CEO effective March 1.
Mr. Ang was designated as the new CEO as Philam Life’s current CEO Ariel G. Cantos announced his retirement after working for the insurance company for 35 years.
Mr. Ang has been with the AIA Group for 21 years. He recently served as AIA China’s chief agency officer (CAO) as well as the general manager.
The new CEO has also “effectively led the agency transformation in Malaysia from 2015 to 2018,” the statement read.
“He has been supporting AIA Hong Kong, China and Vietnam, with a strong track record in driving and delivering business results, building scale in the premier agency force across the company,” Philam Life said in the statement.
“It’s my pleasure to take on this new assignment, and [I’m] grateful to AIA and Philam Life for the trust and opportunity,” Mr. Ang was quoted as saying in the statement. “As we move into 2019, you can expect that the company will remain true to its customer-centric thrust, and will live up to its promise of helping Filipinos live healthier, longer and better lives.”
Even as Mr. Cantos steps down from his CEO position, he will remain as Philam Life’s board member as well as the chairman of Philam Foundation. He will also act as Mr. Ang’s senior adviser until March 21, 2020.
“It has been a privilege to have served Philam Life during an important period of transformation. I now pass the baton to Kelvin, my successor, who will continue to deliver on our promise and commitment to our customers,” said Mr. Cantos.
The Philam Group is the biggest life insurer in the country. As of end-2017, Philam Life and its bancassurance affiliate BPI-Philam Life Assurance Co. posted a combined total premium income of P40.2 billion.
It is serving almost 600,000 individual policyholders. — K.A.N. Vidal

STI Education buys maritime school

STI Education Holdings Systems, Inc. has acquired Mandaluyong-based maritime school NAMEI Polytechnic Institute, as the company recognizes the growing demand for seafarers around the world.
In a statement issued Tuesday, the listed firm said its unit STI Education Services Group, Inc. (STI ESG) has purchased the school that specializes in courses in Maritime Transportation and Marine Engineering and Naval Architecture.
“It is an opportunity for us to introduce exciting changes and transform NAMEI into an educational powerhouse whose students will bring pride not only to their alma mater but also to the country,” STI President and Chief Operating Officer Peter K. Fernandez said in a statement.
Following the acquisition, STI ESG said it will establish information technology programs for maritime education to keep up with the demands in the seafaring industry, such as networking and communications, cybersecurity, and IT maintenance and services.
STI ESG is also exploring options to team up with crew companies in the world where hospitality and culinary students can have their training.
NAMEI will hold classes at the new STI Academic Center Sta. Mesa, along P. Sanchez Street in Sta. Mesa, Manila.
The 10-storey building, which sits on a 3,691-square meter property, can accommodate up to 9,000 senior high school and college students. It will begin operations for academic year 2019-2020. — Arra B. Francia

Capili had 2 weeks to harvest art

THE seventh installment of Conrad Manila’s “Of Art and Wine” series, aptly called Art Harvest, is the hotel’s biggest exhibit to date, with artist Ross Capili curating 64 works of art by 32 contemporary Filipino artists. The show runs until March 9 at the hotel’s Gallery C.
Gallery C, the hallway and exhibition space of Conrad Manila, often hosts exhibits including the “Of Art and Wine” series done every few months, “but nothing has been done in this scale” said Laurent Boisdron, Conrad Manila’s general manager, during the exhibit’s opening on Feb. 12.
He noted that their exhibits used to have three to four artists, each of them showcasing two to three works each, but this time 32 artists have works on display.
But what is more impressive was that Mr. Capili managed to mount the exhibit with just two weeks lead time.
“I love making things hard for myself,” he told the media with a laugh before adding that he was having lunch with some of the hotel staff to talk about his upcoming exhibit later in the year when they asked if he could curate an exhibit to celebrate National Arts Month in two weeks.
“So I went and e-mailed 36 artists and asked them if they have artwork that they haven’t exhibited yet or new work — just make sure the paint’s completely dry — and told them to get back to me within four hours. Thirty-two replied,” he said.
And Mr. Capili, who has had over 30 one-man exhibits to his name and runs a self-named studio, lived up to the exhibit’s theme of Art Harvest by presenting a wide collection of works — paintings, sculpture, photography, mixed media, and digital art from artists such as Pandy Aviado, Joan Balbarona, Rico Lascano, Alain Pascua, Sam Penaso, and Cid Reyes, among others.
“It’s a harvest so it should be bountiful,” he said of the large number of works present in the exhibit.
Unlike other exhibits, Mr. Capili decided not to put the work’s title and artist on a little card beside the works and opted to use codes like “1A” and “1B” instead because “I want them to experience the work personally” and remove any preconception that may result from reading the work’s title. The title, name of the artist, and the work’s price are all indicated in leaflets.
Some of the works in the exhibit include Jik Villanueva’s Good Harvest, a brass, narra wood, and semi-precious stone sculpture of an ant which is selling for P1.9 million; Jane Arrieta Ebarle’s Hibla sa Gallery C (2019), and acrylic on canvas painting priced at P90,000; and Fil dela Cruz’s Lahing Kayumanggi (2018), an oil on canvas painting priced at P208,000.
All the artworks in the exhibit are for sale. For inquiries, e-mail angelica.restrivera@conradhotels.com or call 833-9999 or Ellen Capili at Studio Ross Capili, Inc., at 0917-627-3193 or e-mail studiorosscapili@yahoo.com. — ZBC

Geopolitical tensions cloud HSBC’s outlook

HSBC HOLDINGS Plc warned that geopolitical uncertainty in China, the US and the UK has made the prognosis for the year far less predictable after fourth-quarter earnings fell short of analysts’ estimates.
Chief Executive Officer John Flint has also vowed to keep a keener eye on costs after a disappointing quarter capped his first year in charge of Europe’s largest bank. Like its rivals, HSBC, which gets most of its business in Asia, was hit by the meltdown in financial markets, which pushed investment bank revenues lower. Its shares fell 2.9% in early London trading.
“There are more risks to global economic growth than this time last year, and we remain alive and responsive to all possibilities,” Chairman Mark Tucker said. “The system of global trade remains subject to political pressure, and differences between China and the US will likely continue to inform sentiment in 2019.”
Pressure is growing on HSBC’s management to improve returns by repurchasing stock, and the bank said it’s committed to its previous policy of returning capital to shareholders. However, HSBC stopped short of announcing a new buyback program, which analysts at Jefferies called a “notable disappointment.”
“Prospects for enhanced capital repatriation against slower growth prospects have formed the key part of our constructive stance,” the Jefferies analysts, including Joseph Dickerson, said in a note. “This aspect of our thesis is clearly not playing out.”
“We are clearly going to moderate the pace of some of our investment,” Flint also said in an interview, though he didn’t provide details, saying the bank is “still having those conversations.” HSBC won’t have to resort to any major job cuts to keep a lid on expenses, he said.
Adjusted pretax profit, which excludes one-time items, fell 1% to $3.39 billion in the three months ended Dec. 31, missing the $4.4 billion consensus average derived from estimates compiled by the bank. Global markets, which houses HSBC’s investment bank, said adjusted revenue was $1.1 billion, an approximate 16% decline from the final three months of 2017.
Flint vowed to slow spending as he seeks to deliver on a key promise to shareholders: That revenue gains outpace cost increases, a trend HSBC refers to as positive jaws. He failed to achieve that in his first year at the helm, in part because of the fourth-quarter equities meltdown that also inflicted pain on the bank’s biggest rivals, including UBS Group AG. HSBC said it’s committed to achieving positive jaws this year.
HSBC switched CEOs last year, elevating Flint to replace Stuart Gulliver, bringing to an end a seven-year term marked by asset sales, job cuts and a pivot toward Asia. — Bloomberg

Treasury levels seen as ‘danger’ by Templeton’s Desai

THIS YEAR’S RALLY in Treasuries is an opportunity to sell or get short before the Federal Reserve signals more tightening in the second half of the year, according to Franklin Templeton.
Expectations that the Fed’s next move will be a cut are mistaken, since the central bank’s forbearance in January largely reflected equity market conditions, Sonal Desai, chief investment officer for fixed income at Franklin Templeton Investments, said in a Bloomberg Television interview. Gains in stocks and a strong economy mean the rally in bonds won’t hold, she said.
Sovereign debt in the US have gained in recent months as the Fed indicated it would be patient on hiking rates, with the yield on the 10-year Treasury bond falling almost 60 basis points from the 3.25% highs in November.
“For anybody who takes this market pricing as fact, there’s danger there,” she said in Hong Kong. “Rather than buying, I’d be selling. I’d be looking for interesting places to put shorts on.”
Ten-year bond yields could reach 3.5 to 4% in the medium term, Desai added. “Being short US Treasury duration is going to be safer than being long duration,” she said.
US money markets traders are pricing that the Fed will hold steady throughout this year, before the chance of a rate cut gradually climbs in 2020. Still, Templeton’s views are shared by others, who also see the US central bank raising rates.
OVERLY PESSIMISTIC
There’s a reasonable chance of one or two increases in the second half of 2019, and markets may be “overly pessimistic on growth,” according to Campe Goodman, senior managing director and fixed-income portfolio manager at Wellington Management Company LLP. The front end of the curve will probably move higher, he said.
“I don’t think rates are excessively high now but any increase will be on the basis that it would not have a dampening effect on the economy,” Goodman said in an interview in Singapore. “We saw the rate-sensitive sectors of the economy slow last year — in housing and autos — that suggests to me that higher rates did have an effect.”
Households in the US curbed their spending on real estate and cars after the Fed hiked interest rates four times in 2018.
Bob Michele, JPMorgan Asset Management’s chief investment officer for global fixed income, also said in a Bloomberg Television interview Tuesday that in an environment where the Fed hikes once or twice in 2019, “the 10-year will be dead at around 2.75 to 3% and there won’t be a lot of upward pressure or downward pressure,” he said. “For us as bond investors that’s great — we like a stable bond environment.” — Bloomberg

More firms in hot water for Manila Bay pollution

THE Department of Environment and Natural Resources (DENR), through the Laguna Lake Development Authority (LLDA), on Tuesday said it will issue cease-and-desist orders (CDOs) against five establishments, as the government continues to crack down on businesses said to be polluting Manila Bay.
The five establishments were identified as: Max’s Restaurant along U.N. Avenue; HengFeng Kitchenette at F.B. Harrison St.; Jollibee Macapagal Biopolis branch along Macapagal Blvd.; Lamer Catering at Remedios St.; and Nihonbashi Tei in Malate.
Aloha Hotel along Roxas Blvd, Sarmiti Food Corp. (Shawarma Snack Center) in Ermita, and Orix Auto Leasing Philippines Corp. along FB Harrison St. will be given ex-parte orders (EPOs).
Notice of violations (NOVs) will also be issued against 12 establishments, namely: Heritage Condominium Corp., Ma. Natividad Building, Marina Square Properties, Inc. (Hyatt Hotel and Casino Manila), Cultural Center of the Philippines (Main Building), Cultural Center of the Philippines (Production Design Center), Federal Land, Inc.(The New Blue Wave) in Metropolitan Business Park, First Marbella Condominium Association, Inc., Gold Quest Premiere Resources, Inc. (The Biopolis), Harrison Lodge, Libertad Tourist Development, Inc. (Halina Lodge/Hotel), OWWA Building, and Wellcross Freight Corp.
In a letter to DENR Secretary Roy A. Cimatu, LLDA General Manager Jaime C. Medina said the establishments are not conforming to Effluent Standards for Class SB.
“Based on these saturation and inspection activities in the Manila Bay area, as well as the results of laboratory analysis of the wastewater samples taken, the following establishments were found to be not conforming with the Effluent Standards for Class SB waters,” Mr. Medina said.
The DENR classifies SB waters into three categories: Fishery Water Class I which means the water is suitable for commercial propagation of shellfish and intended as spawning areas for milkfish (Chanos chanos) and similar species; Tourist Zones which means it is safe for ecotourism and recreational activities; and Recreational Water Class I which means it is intended for primary recreation such as bathing, swimming, skin diving, etc.
To date, 63 establishments have already been issued violation orders so far.
In a phone interview, DENR Undersecretary Benny D. Antiporda explained that cease-and-desist order means the establishment’s waste water passages will be blocked.
For those issued an ex-parte order, the establishment will be given 15 days to explain why it should not be issued a cease-and-desist order.
“Yung (notice of violation), yun yung ide-determine paano mo masosolve yung problema po at tsaka yung penalties mo (For those issued NOVs, it would still be determined how the problem will be solved, as well as the penalties),” Mr. Antiporda said. — Reicelene Joy N. Ignacio

14 National Artists in one exhibit


IN celebration of National Arts Month, the BPI Foundation is showcasing works from 14 of the 17 National Artists for Visual Arts until May 19 in its Images of Nation exhibit at the third floor galleries of the Ayala Museum in Makati City.
“We want to democratize art for Filipinos,” Maricris San Diego, executive director of the BPI Foundation, said of the exhibit at a media event on Feb. 6 at the museum.
“Since last year, the BPI Foundation has been taking a more active role in supporting the flourishing local art scene. While this primarily entails the maintenance of the BPI’s art collection, we believe our part also includes educating the public about art appreciation and inspiring creative talents through exhibits that demonstrate our cultural wealth,” she was quoted as saying in a press release.
The works showcased during the exhibit’s run are all part of the BPI art collection, a collection of more than a thousand paintings and sculptures.
“The objective is to promote and inspire, especially our young students. The educational system [is] so complex that not many of them get exposed to arts and culture as they should,” Mariles Gustilo, director of the Ayala Museum, said in the same event.
The exhibit is curated by Kenneth Esguerra, senior curator and conservation head of the museum.
The Order of National Artists (Orden ng Pambansang Alagad ng Sining) is the highest national recognition given to Filipino individuals who have made significant contributions to the development of Philippine arts. Awards are given in Music, Dance, Theater, Visual Arts, Literature, Film, Broadcast Arts, and Architecture and Allied Arts.
The award was created via Proclamation No. 1001 in April 2, 1972 by President Ferdinand E. Marcos and was first conferred (posthumously) to Filipino painter Fernando Amorsolo.
The exhibit features works by Fernando Amorsolo, Arturo Luz, Vicente Manansala, Ang Kiukok, Abdulmari Asia Imao, Victorio Edades, Napoleon Abueva, Benedicto “BenCab” Cabrera, Jose Joya, Botong Francisco, J. Elizalde Navarro, Cesar Legaspi, Hernando Ocampo, and Federico Aguilar Y. Alcuaz (it does not have pieces by cartoonists Francisco Coching and Larry Alcala, and sculptor Guillermo Tolentino).
In all, 45 works of art are on view in the exhibit. These include an untitled BenCab from 1995 featuring three women; a 1965 Edades painting of a church; a 1973 Sarimanok sculpture by Imao; a 1988 painting called Baguio Weekend by Joya; and an undated Juggler painting by Luz.
Images of Nation runs until May 19 at the Ayala Museum, Makati Ave. corner De La Rosa St., Greenbelt Park, Makati City. For more information, visit the Ayala Museum’s website. — Zsarlene B. Chua

How PSEi member stocks performed — February 19, 2019

Here’s a quick glance at how PSEi stocks fared on Tuesday, February 19, 2019.
psei021919
 
Philippine Stock Exchange’s most active stocks by value turnover — February 19, 2019.
pseiactive021919

Duterte signs into law measure creating Housing department

PRESIDENT Rodrigo R. Duterte signed a law creating the Department of Human Settlements and Urban Development through the consolidation of the Housing and Urban Development Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB).
Mr. Duterte signed Republic Act No. 11201, also known as the Department of Human Settlements and Urban Development Act, on Feb. 14. The law consolidates Senate Bill 1578 and House Bill 6775. The Senate and the House of Representatives passed their bills on Nov. 12 and Oct. 10, respectively.
Asked to comment after a briefing at the Palace, HUDCC Chairman Eduardo D. del Rosario told BusinessWorld that with this law, “we will have a more comprehensive determination on how we can address the housing needs of the people.”
The new department, according to the law, will act as the primary national government entity responsible for the management of housing, human settlement and urban development, which also means that it will formulate national housing and urban development policies, strategies and standards that are consistent with the Philippine Development Plan to promote social and economic welfare.
The department will be composed of the Office of the Secretary, and the various bureaus, services and regional offices. The law also said the Office of the Secretary will house the Office of the Department Secretary, the Offices of the Undersecretaries, the Offices of the Assistant Secretaries, and their immediate support staff.
Another function of the department is to formulate housing finance and production policies. — Arjay L. Balinbin

Foreign contractors ruled out of Marawi rehabilitation projects

TASK FORCE Bangon Marawi chairperson Eduardo D. del Rosario on Tuesday confirmed that all Marawi City reconstruction contracts will be awarded to domestic construction firms in the absence of a joint venture with foreign companies.
He said awards will be made via public bidding with some components of the project to be conducted under emergency procurement rules.
“There is no joint venture agreement. It’s all public bidding,” Mr. Del Rosario said in a briefing at the Palace.
He added the debris management, road networks and underground utilities components of the rehabilitation will be conducted under “emergency mode of procurement.”
The Procurement Reform Act or Republic Act 9184 allows the government to directly negotiate with a contractor in cases of extreme urgency and necessity.
“No more [outside companies]. It’s all local,” he said when asked about the involvement of foreign companies.
He said the task force changed its mind on the joint venture mode “when three departments… told us that there may be some legal problems if we pursue the joint venture agreement as a modality of procurement, because not all the projects will generate income because in a joint venture agreement you negotiate, with a feasibility study, that this particular project will earn profit. And from the profit, you share with the government providing the land and the investor providing the facilities or development. There is no profit sharing in the road networks and there is no profit sharing in the construction of school buildings. So anyway, those who feel that there are some sort of legal issues if we pursue the joint venture agreement have sound arguments, so we agreed.”
He also said that “maybe one or two” projects in Marawi can generate income “just like the Convention Center, but a joint venture will take a long process.”
Out of the total of 22 components of Marawi’s rehabilitation, debris management is the most important, according to Mr. Del Rosario.
“Debris management is the key. We have to remove the debris. If you have seen the whole area, it’s about 90% devastated. We cannot start anything unless and until that we have removed all this debris. It started last November, it was stopped in December and it resumed last week. And we are going to complete the debris management not later than August or September,” he said. — Arjay L. Balinbin