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China Bank injects P40M into MCBL

CHINA BANKING Corp. (China Bank) will be infusing additional capital into its insurance unit to support business expansion, the lender said yesterday.
In a disclosure, the Sy-led bank said its board of directors approved on Wednesday the infusion of P40 million into Manulife China Bank Life Assurance Corp. (MCBL).
This forms part of a P100-million capital hike for the insurer matched by a P60-million investment from the Manufacturers Life Insurance Co. (Phils.), Inc. (Manulife Philippines).
“On top of complying with the higher capital requirements for insurance companies, the additional capital will improve MCBL’s capacity to underwrite more business and enhance its competitive position,” China Bank told the Philippine Stock Exchange.
Republic Act 10607 or the Amended Insurance Code of the Philippines requires existing insurers to have a paid-up capital of P900 million by December 2019, higher than the P550 million mandated as of December 2016. The minimum capital requirement will rise to P1.3 billion by December 2022.
MCBL held P500 million in paid-up capital as of end-2017, according to latest data from the Insurance Commission (IC).
China Bank partnered with Manulife for a bancassurance joint venture in 2007, with the listed lender initially taking a five percent stake in MCBL before it was raised to 40% in 2014. This arrangement allows agents and tellers to sell insurance products at China Bank branches.
The bank reported a P5.56 billion net income for the first nine months, down 2.1% from the P5.68 billion profit booked during the comparable period in 2017.
China Bank shares closed at P27.65 apiece on Thursday, 0.36% higher than the previous day’s close. — Melissa Luz T. Lopez

Asian companies set for first quarterly profit drop since mid-2016

HONG KONG — Holiday-quarter profit at Asian companies is likely to drop for the first time in more than two years, following a small rise in the July-September period, as slowing exports, falling factory output and the Sino-US trade war take their toll.
Analysts expect profit to drop by an average 8% for about 2,000 Asian companies over October-December from a year ago, weighed down by slowing growth for firms in the technology, telecommunications and auto sectors, Refinitiv data shows.
The last time things were so dire was the second quarter of 2016, when profit fell 9.4% as oil prices recovered from multi-year lows hit earlier that year, pressuring profit margins, a Reuters analysis of more than 5,000 firms showed.
“Fundamental risks that investors have anticipated since Q2 are starting to show in numbers,” Mixo Das, a strategist at JPMorgan said, adding that signs of margin pressure were emerging.
Profit growth in the September quarter had slipped to 2.4% after a 15.7% rise in the first two quarters of the year, on an average.
The outlook for global growth in 2019 dimmed for the first time last month, according to Reuters polls of economists who said trade protectionism and tightening financial conditions would trigger the next downturn.
Markets worldwide are bracing for a chill.
MSCI’s broadest index of Asia-Pacific shares outside Japan has slumped 14.6% so far this year, more than double the decline in the World index.
Analysts for Asian companies slashed their fourth-quarter and 2019 earnings expectations by 7.3% and 3.7%, respectively, in the last 90 days, Refinitiv data showed.
“Growth slowdown is coming from a very high base as 2017 was a year of recovery,” said Frank Benzimra, head of Asia equity strategy at Societe Generale, adding that companies are likely to cut their 2019 outlook after a disappointing fourth quarter.
The effects from higher tariffs and softer growth in China are more tangible in the fourth quarter, he said.
China and the US have been locked in a debilitating trade war for months, in which the countries have imposed tit-for-tat tariffs on billions of dollars of imports.
The effect has been felt most keenly by tech companies and firms that supply them with components, as well as auto makers who do not produce cars locally.
Corporate earnings in Japan are expected to plunge by nearly a quarter over October-December, their first drop since early 2016, on slowing profit growth at telecom firms SoftBank Group Corp. and NTT Docomo, Inc. and the three top car makers — Toyota, Nissan and Honda.
Echoing a slowing economy, China corporate earnings growth is expected to fall 4.4% versus a 3.5% growth in the third quarter, as companies including tech giants Tencent Holdings Ltd. and Baidu, Inc. register softening profits. With oil LCOc1 at its lowest in over a year, analysts expect energy firms’ profits to come under pressure in the current quarter, taking away what was the brightest spot in the third quarter. — Reuters

DBP net income up in first nine months

DEVELOPMENT BANK of the Philippines (DBP) reported higher net income in the first nine months propelled by its lending business.
In a statement sent to reporters Thursday, the state-owned DBP said it booked a P4.49-billion net income in the nine months ended September, up 13% from the P3.98 billion recorded in the same period a year ago.
This also exceeded DBP’s P4.06-billion nine-month target and is already 81% of its full-year profit goal of P5.56 billion.
DBP President and Chief Executive Officer Cecilia C. Borromeo said the bank’s financial performance in the nine-month period was on the back of robust growth in its lending activities as well as its “revitalized” branch operations.
DBP’s loan portfolio stood at P250.3 billion, already 98% of its year-end target of P256.6 billion, with new loan approvals at P85.9 billion.
By priority thrust, Ms. Borromeo said the infrastructure and logistics sector received the biggest chunk of the lender’s assistance, booking P104.5 billion in the first three quarters.
DBP also lent P26.2 billion to the social services sector as well as P15 billion to the small and medium enterprises segment, while loans to borrowers reached P246 billion, up 22% from P202 billion in the same period last year.
On the other hand, total deposits reached P447.83 billion in the nine-month period, 22% higher than the P367.3 billion a year ago.
DBP saw double-digit deposit growth in Northern Luzon with 29.3%, Southern Luzon with 27.6%, Metro Manila with 25.9%, Northern Mindanao with 25%, as well as Central and Eastern Visayas with 23.3%.
The state-led bank also installed 154 new automated teller machines (ATM) this year, bringing the total to a network of 756 machines nationwide.
Ms. Borromeo said DBP will continue to put up more ATMs this year, especially in underserved areas, to support the government’s financial inclusion agenda.
“DBP has surpassed most of its fiscal targets for the year, and at the same time, remains financially strong to support the various development initiatives of the government,” she added.
For the first nine months, DBP’s gross earnings reached P18.85 billion, up 14% from P16.54 billion a year ago.
Overall, the lender’s total assets jumped 13% year-on-year to P632.93 billion from P557.84 last year.
Capital adequacy ratio was at 14.51% while common equity Tier 1 ratio was at 10.96%.
DBP was the eighth-largest commercial bank in the country in asset terms as of end-June and is the designated infrastructure bank by the government. It provides lending to four key sectors of the economy, namely infrastructure and logistics, SMEs, social services and community development as well as the environment. — K.A.N. Vidal

Wage growth slows globally despite strong economies — ILO

THE International Labor Organization (ILO) has found that global wage growth declined to its lowest level in almost 10 years despite rapid economic growth.
ILO said in its Global Wage Report 2018/19: “Global wage growth in 2017 was not only lower than in 2016, but fell to its lowest growth rate since 2008, remaining far below the levels obtaining before the global financial crisis. Global wage growth in real terms (that is, adjusted for price inflation) has declined from 2.4% in 2016 to just 1.8% in 2017.”
“The slowdown in wage growth in 2017 occurred in spite of more rapid economic growth,” the report added.
ILO Director-General Guy Ryder said in a statement earlier this week: “Such stagnating wages are an obstacle to economic growth and rising living standards. Countries should explore, with their social partners, ways to achieve socially and economically sustainable wage growth.”
Despite the decline globally, Asia and the Pacific registered one of the highest real wage growth rates among all the regions in the study. The ILO said that the region’s real wage growth last year fell to 3.5% from 4.8%, driven by wage growth in China, India,Thailand, and Vietnam.
Regions that experienced a decline in real wage growth were Africa (minus 3% from minus 1.3%); Northern, Southern and Western Europe (0% from 1.3%), and Central and Western Asia (0.5% from 3.0%).
Regions that experienced growth between 2016 to 2017 were Latin America and the Caribbean (0.7% from 0.1%); North America (0.7% from 0.6%); and the Arab States (3.4% from 2.8%). Eastern Europe was the only other region which experienced growth of more than 1% at 5.0% in 2017 from 2.8% a year earlier.
In the Philippines, the average real wage growth from 2008 to 2017 was 1.0%, lagging the regional median for Southeast Asia of 4.0%. Between 2000 and 2017, annual average real wage growth in the Philippines from 2000 to 2017 was 4.6%.
According to the National Wages and Productivity Commission (NWPC), the real minimum wage for workers in the private sector of Metro Manila was P473.61. NWPC also reported that for other regions, the real minimum wage as of October was between P221.69 and P340.14. — Gillian M. Cortez

Bobby Brown sues Showtime, BBC over Whitney docu

NEW YORK — Whitney Houston’s former husband Bobby Brown and the estate of their daughter Bobbi Kristina have sued Showtime Networks and the BBC over alleged unauthorized footage used in a 2017 documentary about the late singer, Whitney: Can I Be Me. According to a complaint filed on Wednesday with the US District Court in Manhattan, Mr. Brown, the R&B singer formerly of New Edition, and Bobbi Kristina’s estate never consented to the airing of footage used in the documentary. The plaintiffs said the material is approximately 15 years old, predating Mr. Brown’s 2007 divorce from Ms. Houston and her 2012 death, and its unauthorized use has harmed Mr. Brown, his business and Bobbi Kristina’s estate. “Every person should have the right to control how their identity or likeness or personality, or voice, name or image is commercialized by others,” the complaint said. Whitney: Can I Be Me premiered in August 2017 on Showtime, a unit of CBS Corp., and the BBC has aired it in the United Kingdom. It draws on interviews with Ms. Houston’s friends and people who knew her, as well as archival footage. Showtime declined to comment, and the BBC did not immediately respond to requests for comment. Mr. Brown’s lawyer, Christopher Brown, did not immediately respond to similar requests. The plaintiffs are seeking at least $2 million for violations of their rights of publicity and false advertising, and an injunction against the documentary’s distribution. Unspecified punitive damages also are being sought. Several other defendants were also sued. The documentary focuses on Ms. Houston’s mid-career struggles, which came long after she shot to stardom with hits in the mid-1980s such as “How Will I Know,” “The Greatest Love of All,” “I Wanna Dance With Somebody,” and 1992’s “I Will Always Love You.” Ms. Houston was 48 when she drowned in a Beverly Hills hotel bathtub, with heart disease and cocaine use as contributing factors. Bobbi Kristina Brown died at age 22 in 2015 of pneumonia after nearly six months in a coma. The case is Brown et al v Showtime Networks Inc et al, U.S. District Court, Southern District of New York, No. 18-11078. — Reuters

SM unveils business continuity program facility for partners

By Arra B. Francia, Reporter
SM PRIME Holdings, Inc. unveiled on Thursday a business continuity program (BCP) facility for its partners to enhance their protection and preparedness against natural disasters.
Speaking at the United Nations Strategy on Disaster Risk Reduction (UNISDR)’s Top Leaders Forum on Thursday, SM Prime Executive Committee Chairman Hans T. Sy said the company is extending its sustainability practices to business partners, especially small to medium enterprises (SMEs).
“This BCP facility will serve as their back up and redundant setup to recover and restore important data among others as part of their business continuity and disaster recovery plans. This initiative is aligned with our business resilience program,” Mr. Sy said in a speech during the program at SMX Convention Center in Pasay City.
Through the facility, SM Prime will offer SME tenants a free data storage facility that will house their operational and insurance documents, allowing them to easily claim insurance and recover should a disaster affect their business.
Citing a report by UNISDR, Mr. Sy said the Philippines is the fourth most vulnerable country in the world in terms of disaster and calamity impact.
The launch of the program is in line with SM Prime’s goal to promote resilience and sustainable practices. The property giant said it has been one of the leading figures in bringing together the private sector to discuss disaster risk reduction issues in the business industry.
Through the National Resilience Council, the private sector led by Mr. Sy has partnered with the national government to enhance the capacity of local government units for resilience. The public side is headed by Defense Secretary Delfin N. Lorenzana.
“Disasters derail progress and push communities further behind sustainable development. I firmly believe that active and actionable DRR (disaster risk reduction) collaboration with public-private partnership will strengthen the resilience of cities and provinces. DRR properly practiced will permeate stronger communities and cities, and ultimately create a safer population over time,” Mr. Sy explained.
For his part, Mr. Lorenzana said promoting resiliency is a shared responsibility between the public and private sector, noting that this calls for a change in mindset and behavior in addressing disasters.
“The Philippine government will always be at the forefront of disaster risk reduction and response, and disaster resilience. Over the past few years we have achieved successes, the latest of which is a legislative front is the proposal to establish a Department of Disaster Resilience,” Mr. Lorenzana said in his speech during the forum.
Special Representative to the United Nations Secretary General Mami Mizutori meanwhile lauded the private and public sector’s efforts, saying this will help the Philippines achieve targets in the Sendai Framework for Disaster Risk Reduction adopted by the UN in 2015.
“We are pleased that SM Prime is in the process of creating a national disaster registry, which will help in the systematic collection of disaster loss and damage data. This is a very practical measure that can make a significant contribution in the Philippines towards achieving the targets of the Sendai framework,” Ms. Mizutori said in a speech.
Ms. Mizutori explained that the knowledge of the damage and losses after a disaster is critical in deciding comprehensive national and local strategies to ensure “inclusive, gender equitable, and climate change adaptation and disaster risk reduction and thus leading to sustainable development.”

LRT-1 operator to spend P100M for CCTV system

LIGHT RAIL Transit Line 1 (LRT-1) operator Light Rail Manila Corporation (LRMC) said it is allocating P100 million to upgrade its surveillance system.
In a statement on Thursday, the company said it tapped Filipino firm Commsec, Inc. for its new closed-circuit television (CCTV) system, which is expected to improve safety in the train line.
“Commsec will install almost 500 high resolution surveillance cameras with increased storage capacity to ensure the safety and security of passengers and employees in and around LRT-1’s passenger stations, depot and other facilities,” Juan F. Alfonso, LRMC president and chief executive officer, said in the statement.
The new CCTV cameras will monitor the train doors, which will be projected on a monitor that the train driver will see. LRMC said this will ensure all doors are safely shut as a train car moves from one station to another.
The new surveillance system would also be equipped with technology that could count the number of passengers in a station’s queue line. It will likewise keep an eye on guarded locations for any security breach.
“With the upgrade, which is estimated to take two years to complete, crowd monitoring will be more effective. This will also later on feed into an automated system that will inform passengers which stations are heavy, moderate or light, thus helping them plan their trips better,” Mr. Alfonso added.
LRMC is the consortium of Ayala Corp., Metro Pacific Light Rail Corp., of Metro Pacific Investments Corp. and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.
Metro Pacific Investment Corp. is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Denise A. Valdez

Bahrain readies austerity push, keeping wary eye on opposition

DUBAI — Bahrain’s new parliament is expected to swiftly pass sensitive austerity measures needed to secure a Gulf aid package, but the U.S. — allied government may implement the belt-tightening in stages to avoid provoking public anger.
The Sunni-led authorities have kept a lid on dissent since a Shi’ite uprising in the island kingdom in 2011 was quelled with the help of neighboring Saudi Arabia, which fears instability in Bahrain will encourage unrest among its own Shi’ite minority.
But Bahrain, a cornerstone of US military power in the region, could face a fresh test of its ability to curb opposition unrest as it implements reforms to subsidies and pensions required by Gulf Arab donors to avert a debt crisis.
Authorities are expected to phase in the changes, hoping to soften the impact, to prevent protests by opposition forces who see the assembly as illegitimate after they were barred from contesting last week’s elections, analysts said.
Bahrain, which lacks the vast oil wealth of other Gulf states, needs to slash state spending because its finances have been hit by an oil price slump since 2014. Bahrain has struggled to curb outlays while avoiding public anger over fiscal reforms.
“The economy will be the biggest issue for the new House of Representatives,” said Jamal Fakhro, deputy president of Bahrain’s upper house. “The new parliament has to be aware that there are some issues that can’t be delayed, because any delay won’t be in Bahrain’s interest.”
Saudi Arabia, Bahrain’s main backer, along with the United Arab Emirates and Kuwait, offered Manama a $10 billion aid package over five years to 2022 to bail out the government if it pushes through fiscal reforms to achieve budget balance.
The austerity measures are likely to face resistance from Shi’ite Bahrainis who say they are already deprived of jobs and government services and treated as second class citizens in the country of 1.5 million, home to the US Fifth Fleet.
The authorities deny discrimination and accuse Iran of fomenting unrest that has seen protesters clash with security forces, who have been targeted by bomb attacks. Tehran denies the charges.
Activists have described the elections as a “farce” after the government dissolved the main opposition groups and barred their members from running.
The opposition may use austerity measures to challenge the legitimacy of the new parliament.
“We are studying calling for protests and moving the street against austerity and new taxes,” said Ali Al Asawad, a leader of closed opposition group al-Wefaq, who lives in self-imposed exile in London and has been sentenced in absentia to life in prison on espionage charges, which he denies.
Al-Wefaq, Bahrain’s biggest opposition group, once controlled almost half of Bahrain’s lower house with 18 seats in 2010. Opposition groups boycotted the 2014 elections.
ECONOMIC PINCH
While Bahrain may see rallies against rising costs, anti-austerity protests are unlikely to be widespread, said Glen Ransom, a senior analyst at Control Risks Middle East, noting that previous subsidy cuts, the introduction of excise tax and approval of value-added tax did not cause significant unrest.
“The government will attempt to reduce any public backlash by easing the impact on Bahraini nationals, which may include targeted subsidies and a phased approach to austerity measures.”
Most candidates running in last week’s elections defended the economic reforms as necessary to maintain stability.
“The VAT has to do with the political will and is part of the obedience to our guardians… and in everybody’s interest,” Jamal Daoud, a lawmaker and candidate said on social media.
Bahrain released a 33-page fiscal plan last month after signing the Gulf aid agreement to fix its finances and abolish its budget deficit by 2022. Manama had projected a $3.5 billion budget deficit in 2018.
Bahrain is due to receive up to $2 billion by the end of the year as a first aid package installment after legislators approved introducing value-added tax (VAT) in 2019.
Bahrain’s parliament has limited power but the two houses approve the state budget and economic policy.
“The new parliament will be involved in every step of the government’s Fiscal Balance Program,” a government spokeswoman told Reuters.
Ali Al Aradi, deputy president of the outgoing House of Representatives, said the government plan would be approved in January, and the state budget for 2019 and 2020, which are expected to see more cuts, by next April.
Other wealthier Gulf states have passed similar subsidies and tax reforms after oil prices plunged in 2014.
Bahrainis are being asked to accommodate austerity measures at a time when their incomes and opportunities are stagnant, said Elizabeth Dickinson, Senior Analyst for the Arabian Peninsula at the International Crisis Group.
“These trends align with growing sentiment among many Bahrainis, particularly the communities that backed the government in the 2011 uprising and its aftermath, that the pace of economic change and the improvement of social services is just too slow.” — Reuters

Pag-IBIG’s housing loans hit P58.7B

THE HOME Development Mutual Fund (Pag-IBIG Fund) logged higher housing loans in the first 10 months of the year, boosted by its robust disbursements last month.
In a statement on Thursday, Pag-IBIG Fund said housing loan releases reached P58.78 billion in the ten-month period, 15% higher than the P51 billion released the previous year. The loans funded homes of 70,561 families, 11% higher than the 63,496 families recorded a year ago.
The mutual fund lent P7.02 billion for housing in October alone, helping 7,896 families. This amount, Pag-IBIG Fund said, is the highest non-December monthly disbursement in the fund’s 37-year history.
“Pag-IBIG Fund’s performance in October stands out as the best month so far this year in terms of our home loan disbursement,” Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti was quoted as saying in the statement.
He added that its low interest rate fuelled the disbursements in October.
If demand for housing loans is sustained in the next two years, Pag-IBIG said it will be able to release P73-75 billion worth of housing loans, which will exceed its full-year target of P71.5 billion.

On the front-line

By Richard Roeper
Movie Review
A Private War
Directed by Matthew Heineman

MARIE COLVIN was one of the great combat correspondents of our time, covering conflicts everywhere from Chechnya to Sierra Leone to Sri Lanka to East Timor, and breaking stories of great impact in a career spanning more than a quarter-century.
I say “was,” because Marie Colvin is gone. It’s one thing to issue a spoiler alert or to avoid revealing the fate of the lead in a fictional tale, but it feels like it would be disrespectful to the memory of Ms. Colvin to treat her life — and her death — like a plot point.
Ms. Colvin, who had been a foreign affairs correspondent for the British newspaper The Sunday Times since 1985, and the French photographer Remi Ochlik were killed on Feb. 22, 2012, while covering the civil war in Syria and the Assad regime’s massacre of thousands of men, women and children.
A Private War is a straightforward and conventional but also appropriately grimy and bloody chronicle of the last 12 years of Ms. Colvin’s life. Despite the occasional moment when the depiction of newsroom procedures doesn’t quite ring true, or a supporting character delivers a line that’s a little too perfect and succinct for the moment, most of what transpires feels grimly authentic and true to the real-life characters and events.
The British actress Rosamund Pike, who often gives off a vibe of cool reserve (even when it might not be ideally suited to the part), admirably throws herself into her portrayal of Colvin. Ms. Pike’s husky, no-nonsense delivery is a spot-on take on the real Marie’s voice (as heard in TV and radio interviews), without sounding like an impersonation. Ms. Pike is equally believable in scenes when Colvin is crawling through the muck and dodging gunfire in hellish war zones, or when she’s gliding through a London soiree in high heels and a black dress.
Director Matthew Heineman and screenwriter Arash Amel (adapting a 2012 Vanity Fair profile by Marie Brenner) alternate between chaotic, sometimes murky docudrama-style sequences of Colvin’s harrowing experiences in some of the darkest and most dangerous pockets of the world and her time back home in London, where she tried to play the part of the dashing, wisecracking, life-of-the-party, rock-star journalist at cocktail parties and awards ceremonies, even as she was battling PTSD and sinking ever deeper into alcoholism.
(Little wonder director Heineman so expertly re-creates the war zone sequences, given his work as a documentarian includes Cartel Land, an unflinching look at the Mexican drug wars, and City of Ghosts, about the Syrian citizen journalist activists known as RBSS.)
In one of the most intense scenes in a movie filled with intensity, Colvin is felled by a grenade blast while covering the Sri Lankan Civil War in 2001 and loses her left eye.
Cut to a posh event in London, where Colvin sports an eye patch and copes with her situation by engaging in dark humor, as when she tells her editor to stop standing on her immediate left because she literally can’t see him from that angle.
Rather than resting on her laurels and taking a desk job, Colvin insists on returning to the most dangerous assignments imaginable, even though she’s haunted by nightmares and is becoming increasingly volatile and reckless, especially when she’s drunk.
Tom Hollander has the most thankless role in the film as Marie’s editor, who fusses about and throws little tantrums when she defies him, but doesn’t take her out of the game even after she’s clearly damaged, inside and out. The charmingly scene-grabbing Stanley Tucci wanders in out of nowhere as a wealthy businessman who falls for Marie. (He’s a composite character who might as well be wearing a nametag saying, “I’m a composite character.”)
The most surprising — positively surprising — performance in the film comes from Jamie Dornan as Paul Conroy, the Royal Artillery soldier turned freelance photographer who becomes Marie’s longtime partner in journalistic madness/bravery and her fiercely loyal friend.
Mr. Dornan was about as mesmerizing as a window display mannequin in the Fifty Shades movies, but he’s absolutely terrific here, delivering a lovely and warm performance as arguably the most sympathetic and relatable character in the entire film. He essentially serves as the stand-in for all of us, who admire the hell out of Marie Colvin and are eternally grateful for the work she did — especially when she put a name and a face on certain atrocities and thus made it impossible for the world to ignore them — but also lament that Marie couldn’t, or wouldn’t, find a way to come home and stay home, and let others take up the front-line charge. — Chicago Sun-Times/Adrews McMeel Syndication
Rating: ★★★
MTRCB Rating: R-13

Jay-Z seeks to halt arbitration against Iconix

NEW YORK — Jay-Z on Wednesday sued to halt his private arbitration with clothing company Iconix Brand Group Inc, saying the company’s inability to find an African-American arbitrator to hear the trademark dispute was unfair. The multimillionaire rapper said in a petition filed in Manhattan Supreme Court that the lack of racial diversity among arbitrators at the American Arbitration Association (AAA) was discriminatory under New York’s state constitution and a New York City human rights law. Iconix could not immediately be reached for comment, and a spokeswoman for the AAA declined to comment. The dispute is the latest in a series of legal wranglings arising from Jay-Z’s 2007 sale of his Rocawear clothing brand to Iconix for about $204 million. Iconix has since written off almost the entire value of the brand, and in 2017 sued Jay-Z in Manhattan federal court over trademark rights. That case remains pending. In 2015, Jay-Z, whose real name is Shawn Carter, and Iconix settled some disputes, and agreed to address future claims in private arbitration, according to Jay-Z’s petition. Last month, Iconix accused Jay-Z of breaching the 2015 settlement and demanded an AAA arbitration. But Jay-Z said the AAA found only three potential African-American arbitrators, out of the hundreds it uses, for his case, and one already represented Iconix in related litigation. He argued that the lack of “more than a token number of African-Americans” made the arbitration contract void. “It would stand to reason that prospective litigants — which undoubtedly include minority owned and operated businesses — expect there to be the possibility that the person who stands in the shoes of both judge and jury reflects the diverse population,” the petition said. Jay-Z, 48, is famous for songs including “Hard Knock Life,” “99 Problems,” and “Big Pimpin’.” The Brooklyn native has won 21 Grammy Awards, most recently in 2015 for Best R&B Song and Best R&B Performance for “Drunk in Love” with his wife, pop star Beyonce. In May, a federal judge ordered him to respond to a US Securities and Exchange Commission subpoena related to the Rocawear sale. The SEC said it was looking in to writedowns by Iconix, and wanted to ask Jay-Z about his personal involvement with the brand. — Reuters

Local firms bid for Antique, Bukidnon airport projects

SEVERAL companies participated in the Department of Transportation’s (DoTr) bidding for the airport projects in Antique and Bukidnon.
The DoTr qualified seven bidders for the P332.7-million Antique Airport Development Project, while nine were qualified for the P408.837-million Bukidnon Airport Development Project.
DoTr officials opened the bids at the department’s office in Clark, Pampanga on Thursday.
The seven bidders for the Antique airport are Verzontal Buildings, Inc.; F. Gurrea Construction, Inc.; Vicente T. Lao Construction; Persan Construction, Inc. — R.R. Encabo Constructors, Inc. joint venture; BSP & Company, Inc.; MAC Builders; and A.M. Oreta and Co., Inc. — IBC joint venture.
For the Bukidnon Airport, the nine bidders are B.M. Marketing; Fiat Construction Services; P.E.R.R.C. Construction Development Corp.; Vicente T. Lao Construction; Dumduma Construction and Trading Corp. and Amarro Construction and Realty Developer joint venture; Green Asia Construction and Development Corp.; MAC Builders and Ulticon Builders, Inc. joint venture; SCP Construction; and Unimasters Conglomeration, Inc.
The qualified bidders will advance to the detailed evaluation and comparison of bids.
The government said it targets to name the winning bidders for both airport projects by December.
The Antique airport concessionaire would have 540 days or a year and a half to finish the project, while the Bukidnon airport concessionaire will get 360 days or almost a year.
Earlier this month, the DoTr invited local companies to join its efforts to develop the Antique and Bukidnon gateways.
The contract for the Antique airport project involves the construction of a passenger terminal building, landslide and airside facilities and strip grade correction with improvement of drainage system. The Bukidnon airport involves site development works.
Based on the bid documents for both airport projects, the detailed evaluation would determine the “lowest calculated bid,” or the bid with the lowest financial component. This company would then move forward to undergo post-qualification tests.
Under the post-qualification phase, the bids and awards committee will determine if the company’s technical and financial submissions are compliant and responsive to the bidding conditions. If it passes this hurdle, the company may then be recommended for awarding of the contract. — Denise A. Valdez

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