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Toyota Motor PHL orders recall of 31 Lexus LS 500 units

TOYOTA Motor Philippines Corp. (TMP) said Lexus Manila, Inc., one of its local dealers, ordered a recall of certain units of LS 500 models due to an improper programming of their start-stop systems.
In a letter to the Department of Trade and Industry’s (DTI) Consumer Protection Group Undersecretary Ruth B. Castelo, TMP First Vice-President Lawyer Rommel R. Gutierrez said some 31 units of the luxury sedan produced from Dec. 19, 2017 to June 28, 2018 will be reprogrammed.
The LS 500, which was introduced into the Philippine market in August 2017, cost as much as P9.268 million.
The vehicle is equipped with a 3.5-liter V6 twin-turbo engine and a start-stop system that automatically stops and restarts the system when the vehicle is stationary so as to cut fuel use and emissions.
“Due to improper programming of the engine control computer, there is a possibility that when the engine restarts within a specific time range after the engine stops, an incorrect intake air volume could be calculated, potentially causing the engine to stall during acceleration from the stationary position,” Mr. Gutierrez said in the letter posted on the DTI’s website.
The re-programming will be done at no cost to affected customers.
TMP said it will notify customers through a letter to invite them to bring the subject units to the company’s Lexus dealer based in Taguig City for the service. — JCL

Where is art headed in 2019?

BUSINESSWORLD asked some of the country’s artists, and art champions about their outlook for Philippine culture and arts for this year (and beyond). The answers were as varied as their practices.
“I look forward that we continue to grow and become diverse and to focus more on our cultural identity and how to cultivate its content and history. We should not only focus on form and physical beauty of an artwork and its commercial value.” — Jojo Austria, a visual artist based in the USA
“The direction of art is more collective, collaborative, and communal. This direction is more sustainable, developmental, and progressive.” — Renato Habulan, artist, curator, and educator
“Naniniwala ako na ang artist ay mayroong malaking responsibilidad sa kanyang kapaligiran, maging ito ay sa politikal, ekonomiya o mga social problems. Bukod sa pagbibigay ng aliw, gaya ng isang pinta o disenyo ng mga bagay at inspirasyon, ang mga artists ay dapat maging kritikal at sensitibo sa bawat bagay at malasakit upang buhayin ang diwa ng mamayan para sa pagsusulong ng bawat bansa sa pamamagitan ng sining. Bagamat sa panahon ngayon ng kalakaran sa art scene sa Pilipinas nakikita natin na maganda ang responde ng mga kolektor maging ang appreciation [nang] mga tao sa mga art exhibit, lalo na sa mga art fairs, malaki man o maliit, pero sana wag laging itrato na ang art ay for investment. Ang 2019 ay napakahalagang taon upang tayo ay magbuklod magkaisa at magtulungan upang baguhin ang sistema sa pamamagitan ng pagpapahayag ng ating saloobin lalo na sa politika at pagpapahalaga sa likas yaman ng bansa. (I believe that the artist has a big responsibility to his surroundings, be it political, economic, or social problems. Aside from giving comfort, like a painting or design of an object, and inspiration, artists should be critical and sensitive to each thing and be compassionate in order to raise the spirit of the people for the promotion of every country through art. Although today’s trend in the Philippine art scene we can see that the collectors respond well and even appreciation [of] people in art exhibits, especially in art fairs, big or small, but hopefully they will not always treat art as for investment. 2019 is a very important year for us to unite and work together to change the system by expressing our attitude especially in politics and appreciation of the country’s natural resources.)” — Thomas Daquioag, artist and art educator
“Philippine Art will evolve and expand all over the world no matter what the political situation is. Actually, it has been [at] a time of great repression that the artist has worked freely without having to think of the commercial benefit as an allure. We have particularly gone all over Southeast Asia and some artists even venture in Europe, America and Australia. Our artists have been asked to exhibit in Biennales and other major exhibitions. At present, the Internet plays such a huge part in the exchange of dialogue and the dissemination of information and with that, I believe that Philippine Art will progress in the years to come.” — Silvana Diaz, art enthusiast, collector, and gallery owner
“[Tanghalang Pilipino] will forever be committed to doing Theater, in the form of productions and training programs, that highlight the immense artistry, historical and contemporary sociocultural and educational value of the diverse Philippine Theater genres, even as we continue to acknowledge the timeless value of world theater arts… TP is not digressing from its original vision-mission of using theater as an instrument for developing a humanistic Philippine arts and culture program by proudly promoting the artistic excellence of our Filipino artists-playwrights, directors, actors, designer, musicians, dancers; using theater for cultural education and promoting the richness of our cultural heritage and therefore enhancing our sense of national identity; promoting the viability of theater as a creative industry; and promoting theater arts as a cultural form that has a universal humanistic value.” — Fernando “Tata Nanding” Josef, Tanghalang Pilipino artistic director
“For 2019, we are expecting an avalanche of creative expressions from the seven fields of art. In theater, there will be the newbie one-time producer, indie groups, school-based, to the tried and tested companies with many decades of experiences all vying for an audience for their own brand of genre which would supposedly transpose into sales. Revenues generated by various theater groups are not made available to the general public — that is why no one really knows if they a profit or simply lose [money] and vanish. Be it a straight play or a musical aimed for children and adults, there is an array of choices for the picking — but this will really all boil down with a theater buff’s pocket if it can hold till the next paycheck and the next and the next. In a month, like come February, there is an expected 10-12 productions that will open. Economics will rationalize one’s decision if he could and can opt to spend his extra pesos on a theater treat. But for how many can it translate to affordability if more equally exciting shows are due to be unveiled in March, April, and up until December?”
“Theater has to survive. With funds, of course. The art of selling a specific production always pose as a challenge for the marketing and sales team… It’s a dog-eat-dog world out there because financial resources are simply fewer in terms of corporate support. It’s the least of their priorities. The unnamed philanthropists will or should come in and help the industry to keep going…”
“In dance, with it’s very restricted audience, the challenges are even much harder to cope [with] relative to budget. Productions have been cut — from the usual average of six and reduced to three at the very least.”
“For the visual arts community, the scope is much larger… because of the various modes of expression each artist churns [out] for their buyer or a collector… Over the past decade, many new artists came to fore and a new generation of buyers also made the scenario buzz as to who would be the best to invest their money with [an eye to] future payback. That’s commercialism vs. art.”
“In film, there is a renaissance of more thought-out and well-crafted genres that either spell millions in ticket sales or the other side of the pendulum.”
“For sociopolitical reasons in the seven fields of art — specially with this year’s elections — there will be bolder, [more] up front, in-your-face satires, parodies, or socio-realism that will bring added color to the norm. Expect this to happen from the artists who painstakingly translate their ideals into their work of art: theater, dance, song or poetry, literature, visual or sculpture, film or photography. Philippine arts and culture this year is going to be so alive, noisy, empowering, and conscious of the specific market they shall serve. And here’s hoping that corporations can extend at least financial support to the artists whose love, passion and dedication is unquestionably the best. Yes, it’s going to be an entertainment, but it will spell relevance.” — Joselito “Toots” Tolentino, art enthusiast and publicist
“Maki-Improv, Huwag Matakot! is just a small and young group, and we are not yet that influential in the scene, so I don’t know if we can talk on behalf of the improv community. But Maki is committed to creating art that is fun but at the same time has politically charged commentary. Many artists right now are becoming more political, and that has always been the role of artists. It is a very important role, especially with the upcoming elections. When we speak our truth, we will inevitably encourage others to voice out theirs, and that chorus of voices can become a game changer, [especially] in the [upcoming] elections. At the Manila Improv Festival on March 27 to 31, Maki is one of the many improv groups from all over the world who will perform at the PETA Theater Center. Our show’s theme is ‘elections.’…. We hope our show sparks discussion, and we hope that it will inspire people to go out and vote.” — Jasmine Cruz, president and co-founder of Maki-Improv

Honestbee provides injury policy for workers

HONESTBEE, an online concierge and delivery service provider, said it now provides personal injury insurance coverage for its employees while they are fulfilling or delivering orders.
In a statement, Honestbee said its has enrolled thousands of its shoppers and delivery personnel in a group personal injury policy.
“The policy covers a range of situations while on the job, such as medical expenses, hospitalization, temporary incapacity, permanent disablement and even death. The policy is effective immediately,” the company said.
The Singapore-based company said the policy is being implemented in the 16 cities in eight countries where it operates, namely the Philippines, Singapore, Japan, Thailand, Taiwan, Malaysia, Indonesia, and Hong Kong. In the Philippines, Honestbee is available in Metro Manila and some parts of Cebu.
Crystal Gonzalez, managing director of Honestbee Philippines, said the company believes in providing safety and security to its employees.
“We currently have hundreds out on the field who continue to work hard in giving convenience and high quality service for our customers,” she was quoted as saying in a statement.
In Asia, Honestbee works with 10,900 stores and restaurants. It has been operating in Philippines since 2017, partnering with small and medium-sized restaurants, supermarkets, and businesses such as Robinsons Supermarket, Robinsons Selections, and Ministop.
Customers can shop for groceries or order food from restaurants on the Honestbee app or website, and have it delivered.

Art tilt hopes to tap youth’s passion

BECAUSE THE future belongs to the dreamers and the youth, this year’s theme for the Visual Arts Competition (VAC), a partnership between PLDT and Directories Philippines Corp. (DPC), is “Creating the Legacy, Creating the Future.”
With the theme in mind, the DPC-PLDT Visual Arts Competition is encouraging young Filipino artists all over the country to imagine what tomorrow could be like and then transfer their vision onto canvas.
Emily Abrera, secretariat head of the 33rd DPC-PLDT Visual Arts Competition and the former chairwoman of the Cultural Center of the Philippines, said that the committee had to think of a theme that had not been used before. As VAC has been around for more than three decades, this makes it hard to think of a novel theme.
Ms. Abrera said that the theme is asking the youth this vital question: “Ano ang mahalaga sa iyo?” (What is important to you?)
“One is never too young to think of their legacy,” said Ms. Abrera during a press conference held at New World Makati last month.
She added during her speech: “In a rapidly changing world that is increasingly being driven by younger generations, we need to be more aware of the impact that our day-to-day life decisions and the values we hold dear will have on the future shape of our society and the sustainability of our planet.”
But around the same time as the competition’s launch, a study on Filipino youth and dreams came out that said seven out of 10 of today’s teenagers don’t have dreams anymore. Poverty and the lacks of self-esteem, passion, and opportunity were mentioned as among the top factors leading to Filipino teenagers’ lack of dreams and personal goals, said The Dream Project PH Founder Prim Paypon of the study which covered 614 Filipino teenagers from different socioeconomic classes across the country.
All this leads one to ask: Can art ignite passion? How can art competitions like VAC be reconciled with the survey’s results?
Reacting to the survey, VAC project head Ruben Tangco could only say, smiling, “Well, that’s unfortunate,” but he still looked hopeful.
The organizers are still hopeful about the competition’s goals. The VAC head said this year’s theme might improve Filipino youth’s self-esteem and ignite their passion, which the study said they are lacking.
Art competitions can not only inspires dreamers and artists, but also open opportunities for anyone. Discovered talents do not necessarily come from Metro Manila, said Mr. Tangco.
When the DPC-PLDT VAC started 33 years ago, it was a competition controlled by entries from Manila’s schools, said Mr. Tangco, but not anymore.
While the majority of the winners were from Far Eastern University (with nine out of 32 winners), the University of Santo Tomas (two out of 32), and University of the East (three out of 32), Mr. Tangco said students from the province are starting to gain recognition.
The DPC-PLDT VAC aims to help the young to create, imagine, and work on the future and create their own legacy, big or small.
To join this year’s competition, Filipino students aged 18 to 24 must be enrolled in any accredited tertiary school with a Fine Arts program.
The submission of paintings is from Feb. 25 to March 1, however, students’ art must be submitted through their schools.
Fine Arts colleges, departments, and schools nationwide are encouraged to choose as many as five oil or acrylic paintings by their students as official entries.
Besides the cash prize of P100,000, the winning works will become covers of the Yellow and White Pages.
In 2012, the DPC-PLDT VAC was also open to photography, but this was shortlived said Mr. Tangco, because of incidents of fraud including the use of Photoshopped images and recycled entries.
“It’s hard to police,” said Mr. Tangco.
For the full competition mechanics, visit www.visualarts.ph. — Nickky Faustine P. de Guzman

Globe improves network coverage in Cebu

GLOBE TELECOM, Inc. on Tuesday said it has boosted mobile network coverage in two barangays in Cebu City.
In a statement, Globe said it had established two additional cell sites in Barangay Bonbon and Guba, addressing “dead spots” in the hilly areas of Cebu especially during calamities and disasters.
The telecommunications company said it plans to build more cell towers in Barangay Tabunan, Sirao, and Babag.
“This is part of our vision to provide each and every Filipino access to critical telecommunications services, especially those who live in underserved, sparsely-populated areas, as they need connectivity the most,” Globe General Counsel Froilan M. Castelo was quoted as saying.
Globe has been undergoing a massive network modernization program, spending about 32% of revenues a year on this effort.
As of end-September 2018, the company said it has ”deployed close to 12,000 LTE sites by fully utilizing 700 MHz, 2600 MHz, and other spectrum assets.”
In August, Globe gained approval from the Securities and Exchange Commission (SEC) for the establishment of a separate tower company expected to “help speed up the building and deployment of cellular towers in the country.”
For the first nine months of 2018, Globe’s net income jumped 17% to P15.15 billion, from the P12.99 billion recorded a year ago. Consolidated service revenues rose 9% to P103.3 billion during the January to September period, “fueled by the surging data revenue growth across all segments.”

Art criticism essay contest announces gallery shows to be reviewed

PORTRAIT of Purita Kalaw-Ledesma by Carlos “Botong” Francisco — KLFI.PH

THE ANNUAL Ateneo Art Awards-Purita Kalaw Ledesma Prizes, which recognizes art criticism in the country, is now open for submission of entries.
The articles, which should be no longer than 1,000 words, must be submitted on or before May 31, 5 p.m.
Interested participants write about any of the following exhibitions:
• Bakas Bagtas Bukas by the Anino Shadowplay Collective, ongoing at the Cultural Center of the Philippines (CCP) until Feb. 3;
• CONTINUUM: The Art of Alan Rivera A Reconstruction of Memory, ongoing at the CCP’s Bulwagang Fernando Amorsolo (Small Gallery), Pasilyo Victorio Edades (4F Hallway Gallery) and 4th floor Atrium until Feb. 3;
• Graphic Design Exhibition which will be on view at the CCP’s Bulwagang Juan Luna (Main Gallery) and Pasilyo Guillermo Tolentino (3F Hallway Gallery) from March 19 to May 26;
• Transpersonal, an exhibit featuring artists and artist collectives from the UK and Philippines done in collaboration with the University of the Arts London, on view until Feb. 1 at the 1F and 3F Galleries of the Jorge B. Vargas Museum, UP Diliman, QC;
• Rendering 2017-2018, an exhibit by Gerardo Tan in collaboration with Felicidad Prudente and Sammy Buhle, which is run from Feb. 9 to March 7 at the 3F Galleries of the Jorge B. Vargas Museum, UP Diliman, QC;
• Allison Wong David solo show, which will run from March 26 to May 31 at the 1F Galleries of the Jorge B. Vargas Museum, UP Diliman, QC;
• Jason Dy solo show, which will run from March 16 to April 16 at the 3F Galleries of the Jorge B. Vargas Museum, UP Diliman, QC;
• Sa Dagat at Bundok: Wynn-Wynn Ong, until March 2, at the Basement Galleries of the Metropolitan Museum of Manila;
• Hau Chiok: Sixty Years of Creativity, until Jan. 15, at the Tall Galleries of the Metropolitan Museum of Manila;
• Gendered Bodies in Southeast Asia: Works by Women Artists, from Jan. 29 to March 9 at the Galeriya Bangko Sentral ng Pilipinas of the Metropolitan Museum of Manila;
• 100 Years of Deutscher Werkbund, March 28 to June 1, at the Ground Floor Galleries of the Metropolitan Museum of Manila;
• Locsin and Santos: Structures of Social Engagement, April 25 to May 25, at the White Cube Gallery of the Metropolitan Museum of Manila;
• Arte Povera Exhibition, Feb. 7 to May 12, at the Museum of Contemporary Art and Design (MCAD), College of St. Benilde;
• Images of Nation: F. V. Coching, Komiks at Kultura, until Feb. 3 at the Ayala Museum;
• Territory: Gus Albor, Works from 1969 — 2018, until Feb. 10 at the Ayala Museum, and;
• Gold in our Veins: Mark Lewis Lim Higgins, Feb. 18 to April 14 at the Ayala Museum
The writers, of any age, must be based in the Philippines. To avoid conflict of interests, writers and columnist from any broadsheets and local/international magazine cannot participate, but contributors, defined as any person whose written works is published with a byline but not identified as a columnist may join.
The Purita Kalaw-Ledesma Prizes in Art Criticism honors the memory of Purita Kalaw-Ledesma, art patron and founder of the Art Association of the Philippines (AAP). Ms. Ledesma was instrumental in the development of Philippine art of the post war period through the establishment of the AAP and her patronage of both established and emerging artists.
For inquiries, send an e-mail to aag@ateneo.edu or call the Ateneo Art Gallery at 426-6488 or 426-6001 loc. 4163.

Gov’t fully awards bonds as demand soars

THE GOVERNMENT fully awarded the 10-year Treasury bonds (T-bond) it placed on the auction block on Tuesday amid overwhelming demand as investors sought to park their funds in longer-dated instruments.
The Bureau of the Treasury (BTr) raised P20 billion as planned through the fresh 10-year debt papers on Tuesday. It received tenders totalling P52.989 billion, more than twice the amount the government intended to borrow.
The 10-year T-bonds fetched a coupon of 6.875% with an average rate of 6.829%, 14.6 basis points lower than the 6.975% fetched during the previous auction.
To take advantage of yesterday’s strong demand, after the auction, the Treasury decided to open a tap facility to raise another P20 billion in 10-year papers carrying the same rate.
The facility will be limited to the 10 firms who have been named as market makers by the Treasury, who are given privileges like this in exchange for obligations like submitting rate bids within a prescribed range.
Based on the PHP Bloomberg Valuation Service Reference Rates, the 10-year debt notes were quoted at 6.976% yesterday.
Following the auction, National Treasurer Rosalia V. De Leon said the Treasury was pleased with the result of the bond offering.
“We now see that the appetite is really toward the long end — on the 10 years this time,” Ms. De Leon told reporters yesterday. “It came out again [from] the significant downtrend of inflation. Even in terms of the path, it is expected that it will continue to go down…”
Inflation continued to ease last month, registering a 5.1% print in December. This was slower than market expectations as well as the 5.2-6% estimate range of the Bangko Sentral ng Pilipinas.
For 2018, headline inflation averaged 5.2% — faster than the central bank’s 2-4% target range and the highest since 2008’s 8.2%.
The central bank is expecting inflation to return “to below four percent by around the end of Q1 2019,” well within the 2-4% target band of the government.
“We also see that there’s a liquidity onshore as well… Hopefully for the next auctions it will be replicating this kind of auction outcome,” Ms. De Leon added.
Sought for comment, bond traders said the auction result was “well within expectations” of the market given the improved inflation outlook.
“As expected, it was a pretty good auction since CPI (consumer price index) outlook is better,” a trader said in a text message.
The government plans to raise P360 billion this quarter through domestic means. Some P240 billion will be borrowed through 12 weekly T-bill auctions during the three-month period, while P120-billion worth of T-bonds will also be issued through six fortnightly auctions.
The state wants to borrow P1.189 trillion in 2019 to fund its spending plans. Of the amount, 75% will be sourced domestically while the remainder will be from foreign creditors.
However, the 2019 national budget has yet to be passed by Congress and signed into law, leaving the fiscal program hanging so far. — Karl Angelo N. Vidal

Dennis Uy’s firm gives P40-million downpayment for PXP Energy shares

THE holding company of Davao City businessman Dennis A. Uy has paid the 1% downpayment for its subscription to common shares in PXP Energy Corp., the listed oil and gas exploration company told the stock exchange on Tuesday.
Dennison Holdings Corp. paid P40.29 million as initial payment for the PXP Energy shares or 1% of the total subscription price of P4.03 billion for the total 340 million shares.
This follows the forging of an amended subscription agreement between the two parties on Dec. 26, 2018, wherein they agreed to reschedule and accelerate the full payment of Dennison’s subscription to not later than March 31, 2019.
The amendment also called for Dennison to pay the downpayment on or before Jan. 7, 2019.
On Tuesday, shares in PXP Energy rose 1.16% to P15.66 each.
The amended subscription agreement follows the announcement of PXP Energy on Oct. 26, 2018 on the subscription agreement forged on the same date between the company chaired by Manuel V. Pangilinan and Dennison.
In the event Dennison fails to pay the entire subscription price by March 31, the entire downpayment will be forfeited in favor of Mr. Pangilinan’s company and the subscription agreement will be terminated at the option of PXP Energy.
After the subscription to the shares and full payment of the subscription price, Dennison will be entitled to at least one seat in the PXP Energy board, as well as to nominate the board’s vice-chairman. Mr. Uy’s firm is also entitled to all other rights of a shareholder.
PXP Energy directly and indirectly owns oil and gas exploration and production assets in the Philippines, and indirectly owns an exploration asset located in offshore Peru.
The amendment came after PXP Energy disclosed on Dec. 21 that Forum (GSEC 101) Ltd., or Forum GSEC, had sent a letter of request on the same date to the Department of Energy (DoE) to lift the force majeure imposed on Service Contract (SC) 72 on Recto Bank.
Forum Energy Ltd., in which PXP Energy holds a direct and indirect interest of 78.98%, has a 70% participating interest in SC 72 located in Northwest Palawan, through its wholly owned subsidiary Forum GSEC.
PXP Energy has a total economic interest of 53.1% in SC 72.
The DoE placed SC 72 under force majeure on March 2, 2015 because the contract area falls within the area that was at that time the subject of an arbitration process with China.
PHOENIX TO RAISE P5B
Separately, Mr. Uy’s Phoenix Petroleum Philippines, Inc. told the stock exchange on Tuesday that its stockholders had approved the issuance and offering of up to P5 billion of perpetual preferred shares.
The preferred shares total 5 million at an issue price of P1,000 per share. The issuance is subject to the registration with the Securities and Exchange Commission and listing with the Philippine Stock Exchange.
“[W]e would like to announce that the same board action was approved and assented to by stockholders representing the majority of the Corporation’s Issued and Outstanding capital stock,” the company said.
The disclosure corrected Phoenix’s earlier notice on the same day about an issuance of perpetual preferred shares of up to P10 billion at an issue price of P1,000.
On Tuesday, shares in Phoenix Petroleum were unchanged at P10.80 each. — Victor V. Saulon

Beyonce and Jay-Z help Paris Louvre museum to record number of visitors

A SCENE FROM Beyonce and Jay-Z’s “APES**T” music video.

PARIS — A music video by Beyonce and Jay-Z set in the Louvre helped boost visitor numbers to a record 10.2 million last year, the most for any museum in history, the Louvre said on Thursday.
A rebound in tourist numbers to Paris, following a drop after Islamist militants killed 130 people in the French capital in November 2015, also helped the museum achieve a 25% increase in visitors on the previous year.
The Louvre said it was happy at the response to the video by Beyonce and her husband Jay-Z for the song “APES**T” in which they perform in front of the Mona Lisa, the Venus de Milo and other famous artworks. It has been viewed nearly 150 million times on YouTube.
“It is good to see that these American artists, creators of today, are interested in a museum of archaeology and ancient art,” Louvre Director Jean-Luc Martinez told Reuters.
The Louvre’s previous record was 9.7 million visitors, in 2012, when the museum inaugurated its Islamic Art section and held exhibitions on Leonardo da Vinci and Raphael.
Three-quarters of the visitors are foreigners, with about 1.5 million American and 1 million Chinese tourists.
Indicating that the sometimes violent “yellow vest” protests in the final weeks of last year had not damaged tourism, the French Center for National Monuments also reported record 2018 numbers, with 10.2 million visitors, up 8%, to the 100 sites it manages. The previous record was in 2014.
The Arc de Triomphe, despite being closed for two weeks last month after being defaced by yellow vest protests against government reforms, was France’s most popular monument in 2018, with 1.7 million visitors, followed by the Mont-Saint-Michel island in Normandy, with 1.4 million.
Full-year tourist numbers for the Paris region are not yet available, but in the first half of 2018 it booked a record number of 17.1 million arrivals and said it was hoping for a full-year record of 50 million. — Reuters

Federal Reserve may get less bang for buck if it repeats 2016 rate pause

FOR THE Federal Reserve, 2019 has started out looking a lot like 2016: the last time uncertainty over global growth roiled financial markets for months on end.
Fed Chairman Jerome Powell pointed to the 2016 episode Friday to underscore the US central bank’s ability to be flexible when necessary, recalling the Fed held interest rates steady almost all year. But while officials still have the option to press pause on their campaign of gradual rate hikes again, it may not have such a calming influence this time around.
At the outset of 2016, policy makers were projecting four quarter-point rate increases for the year. Sliding stock markets knocked them off track and they ended up staying on hold until making a single move in December.
Amid the turmoil, investors anticipated Fed officials would blink, which pushed down longer-term interest rates. That in turn helped offset some of the tightening of financial conditions. In March 2016, then-Fed Chair Janet Yellen referred to this effect as an “automatic stabilizer” for the US economy. It helped. The economy weathered the market turmoil and the US expansion ground on to become the second-longest on record.
RATE FORECASTS
Fast-forward to now and US central bankers don’t have the luxury of relying on that automatic stabilizer. Fed officials entered this year projecting two rate increases, but investors currently anticipate a rate cut this year has become more likely than a hike.
That leaves the Fed in a tough spot because central bankers aren’t inclined to cut rates at the moment, and the rest of the government isn’t offering any help to support investor sentiment, said Ethan Harris, co-head of global economics research at Bank of America in New York. Congress has fallen back into gridlock, and President Donald Trump’s trade war with China is increasing uncertainty.
“All of the pressure is on the Fed: they are the ones that have to say the right thing to keep markets comfortable,” Harris said. “Powell talked about the baseline for the economy and downplayed the risks. That, I think, scared the markets,” he said, referring to the Fed chairman’s Dec. 19 press conference, which sent stocks tumbling further.
S&P, OIL
The S&P 500 index has fallen almost 13% since September amid a more than 30% drop in oil prices. Ongoing trade tensions and a homegrown slowdown in China’s economy have combined to fan fears among investors about the outlook for global growth, just like 2016.
“With the muted inflation readings that we’ve seen coming in, we will be patient as we watch to see how the economy evolves, but we’re always prepared to shift the stance of policy and to shift it significantly if necessary,” Powell said Friday in Atlanta. “I’d actually like to point to a recent example when the committee did just that, in early 2016.”
At the end of 2015, investors had priced 60 basis points over the coming year. That fell to zero during the following six months as the Fed cut its forecast, helping offset the effect of tighter financial conditions.
This time around, prices of interest-rate swaps signal investors see rates easing by 10 basis points over the next 12 months, meaning the Fed would probably actually have to cut rates to offset tighter financial conditions.
That’s something they are unlikely to do unless they’re convinced a recession is right around the corner, according to Michael Hanson, chief US macro strategist at TD Securities in New York.
Powell certainly gave no such hint of a rate cut Friday. He said economic data remained solid and pointed to the December jobs report, released earlier that day, which was strong across the board with unemployment of 3.9% still near a 50-year low.
That said, other economic indicators have softened. A monthly gauge of sentiment in the manufacturing sector, which is more forward-looking than the employment report, plunged in December, according to data published on Jan. 3 by the Institute for Supply Management. But even after the drop, the gauge remains at levels consistent with strong economic growth, as Powell pointed out.
Fed officials are unlikely to be as cautious in 2019 as they were in 2016 because interest rates are quite a bit higher now — which means they have more room to ease if they make a mistake by over-tightening than they would have had then — and because the unemployment rate is still below levels they bet are sustainable, Hanson said.
“They still believe that the danger is more to be under-reactive than over-reactive to the tight labor market,” he said. “The Fed isn’t saying it’s going to cut rates. The Fed isn’t even saying it’s going to pause.” — Bloomberg

Sun Life’s Mantaring named MAP president

SUN LIFE Financial Philippine Holding Co. Chair Rizalina G. Mantaring has assumed the presidency of the Management Association of the Philippines (MAP) for 2019.
MAP said Ms. Mantaring is the organization’s 70th president and the fourth female president since it was established in 1950.
This year, Ms. Mantaring leads the MAP along with Francis Ed. Lim, senior partner of ACCRALAW, as vice-president; Benedicta Du-Baladad, managing partner and CEO of Du-Baladad and Associates, as treasurer; Cesar G. Romero, country chair of Shell Companies in the Philippines, as assistant treasurer; and Carol V. Dominguez, president and CEO of John Clements Consultants, as secretary.
Other MAP board members include AC Infrastructure Holdings Corp. President and CEO Jose Rene D. Almendras; Ayala Corporation Managing Director John Philip S. Orbeta; UnionBank of the Philippines CEO and Chair Justo A. Ortiz; and Philippine Airlines Director and former Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr.
Ms. Mantaring is also a director at Sun Life Grepa Financial, and the chair of Sun Life Foundation.
She joined Sun Life in 1992 as senior manager and head for Asia Pacific of the then — Nascent Information Systems Department. She later became Sun Life chief operations officer for Asia in 2008, deputy president for Sun Life Philippines in March 2009, then CEO and country head from August 2009 to June 2018.
Ms. Mantaring received the Asia Talent Management award at CNBC’s 2017 Asia Business Leader Awards and the CEO Excel Award from the International Association of Business Communicators-Philippines.

Art dealer to billionaires offers 10 prized works at auction


AN ART dealer with clients including billionaires Leon Black and Ronald Lauder is selling 10 works from his private collection that could set individual auction records for some of the masters who created them.
Richard L. Feigen, 88, who sold paintings to moguls and museums over six decades, is offering the works through Christie’s to raise money for retirement, he said in an interview. They span four centuries and include a two-sided John Constable landscape and Saint Sixtus, a rare, gold-ground Fra Angelico.
At least five will be offered at auction on May 2 in New York, Christie’s said in a statement Friday. Others are being sold privately, Mr. Feigen said. Some of them spent years hanging in his living room.
Mr. Feigen, who founded his gallery in the 1950s after graduating from Harvard Business School, has sold paintings to major museums including the Louvre and the National Gallery of Art in Washington. In 2016, the J. Paul Getty Museum in Los Angeles paid $30.5 million for Orazio Gentileschi’s Danae and the Shower of Gold after Mr. Feigen’s family trust loaned it to the Metropolitan Museum of Art.
The upcoming sales aren’t expected to fetch quite that much, but they could establish records for some of the artists. For example, Virgin and Child with Saint Lucy and the Young Saint John the Baptist by Italian Baroque painter Annibale Carracci is estimated at about $4 million. His current auction high is $3.4 million, according to Artnet.
Lorenzo Monaco’s round painting on gold ground, The Prophet Isaiah, is estimated at $1.5 million to $2.5 million. The work, which Mr. Feigen bought at Sotheby’s three decades ago for $275,000, was originally part of the altarpiece that’s now at the Galleria dell’Accademia in Florence. The current auction record for the artist is $1.9 million from 2004.
A tiny two-sided work by Constable, depicting a landscape on one side and a cow on the other, is estimated at $800,000 to $1.2 million. Mr. Feigen bought it at auction for about $377,000 in 1999.
The only known still life by Guercino, Vanitas Still Life, depicting a skull, is estimated at about $3 million.
“It’s one of my favorite pictures,” Mr. Feigen said. — Bloomberg

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