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World Bank says demand for blockchain bond tops expectations

Washington — The World Bank raised Aus$110 million ($80.9 million) in the first-ever blockchain bond offering following investor demand that exceeded expectations, the global lender announced Thursday.
The Washington-based bank, which has embraced blockchain as a valuable tool in its economic development mission, had initially expected to garner Aus$50 million ($36.8 million) for the two-year bond, with a possible doubling of that size depending on investor interest.
“I am delighted that this pioneer bond transaction using the distributed ledger technology, bond-i, was extremely well received by investors,” World Bank Treasurer Arunma Oteh said in a statement.
“We are particularly impressed with the breadth of interest from official institutions, fund managers, government institutions and banks.”
Blockchain is a digital public registry of transactions that has aroused considerable enthusiasm in financial and government circles over its potential to facilitate transactions and improve supply chains and product verification in myriad industries.
World Bank areas of focus that could be helped by blockchain and other disruptive technologies include land administration, health, education and carbon markets, the bank said.
Investors included Commonwealth Bank of Australia, First State Super, Northern Trust and the Treasury Corporation of Victoria.
Derek Young, chief operating officer for group investments at QBE Insurance Group, another investor, said in remarks provided by the bank that blockchain offered “untapped potential for the application of this product to capital markets.”
There is no central bank behind blockchain. The vehicle will be organized around Australian dollars.
The technology is most often associated with cryptocurrencies — like bitcoin — which often raise suspicions about their reliability and volatility, as well as their use for criminal purposes.
However, even some critics of bitcoin have said blockchain offers significant potential among emerging financial technologies.
Microsoft was an independent code reviewer for the bond offering, while TD Securities served as market maker. — AFP

Uber, Airbus said to be working on Japan’s plans for flying cars

Japan is making a push to develop flying cars, enlisting companies including Uber Technologies Inc. and Airbus SE in a government-led group to bring airborne vehicles to the country in the next decade, according to people familiar with the matter.
The group will initially comprise about 20 companies, including Boeing Co., NEC Corp., a Toyota Motor Corp.-backed startup called Cartivator, ANA Holdings Inc., Japan Airlines Co., and Yamato Holdings Co. Delegates will gather Aug. 29 for the first of their monthly meetings, the people said, asking not to be identified citing rules. The Ministry of Economy, Trade and Industry and the Transport Ministry plan to draft a road map this year, they said.
An Uber spokeswoman confirmed the company’s participation in the group, but declined to comment further. Representatives for Airbus, Boeing, ANA, JAL, NEC, Yamato and Cartivator declined to comment, as did those for the trade and transport ministries.
Flying cars that can zoom over congested roads are closer to reality than many people think. Startups around the world are pursuing small aircraft, which were until recently only in the realm of science fiction. With Japanese companies already trailing their global peers in electric vehicles and self-driving cars, the government is showing urgency on the aircraft technology, stepping in to facilitate legislation and infrastructure to help gain leadership.
Many have already had a head start in the race. Uber, which will invest 20 million euros ($23 million) over the next five years to develop flying car services in a new facility in Paris, has set a goal of starting commercial operations of its air-tax business by 2023. Kitty Hawk, the Mountain View, California-based startup founded and backed by Google’s Larry Page, in June offered a glimpse of an aircraft prototype: a single-person recreational vehicle.
Other global companies envisioning this new form of transportation include Volkswagen AG, Daimler AG and Chinese carmaker Geely Automobile Holdings Ltd. Japanese carmakers have not yet announced their plans to develop flying cars.
Japan’s Economy Minister Hiroshige Seko told reporters this month that flying cars could ease urban traffic snarls, help transportation in remote islands or mountainous areas at times of disasters, and can be used in the tourism industry.
The technology, just like aviation, would need to win approvals from several regulators that can take many years. That would also happen only when safety standards are set by agencies, without which commuters won’t embrace the flying craft.
Japan wants to take a lead in writing the rules for this nascent industry, as policy makers think the current aviation regulations are mostly set by Europe and the U.S., one of the people said. — Bloomberg

Fortnite fever may be cooling: market tracker

San Francisco, United States — The frenzy over the phenomenally popular video game Fortnite may be easing, according to revenue estimates released Thursday by market tracker SuperData.
The free online game’s revenue grew just 2 percent in July from the previous month — despite creator Epic Games releasing a new season of its “battle pass” offering digital perks and added challenges.
“Fortnite‘s peak may be behind us,” SuperData said.
However, some game industry insiders contend that the game’s typically school-age fans may just be on summer vacations — and could come back in force once lessons get back underway.
Fortnite became an eSports phenomena after last year’s release of a free “Battle Royale” mode that lets up to 100 players vie to be the last character standing on ever-shrinking terrain.
The game passed a billion dollars in revenue last month, after earnings from sales of digital items such as dance moves or avatar outfits climbed 7 percent from April to May.
Reasons for its popularity include that it can be played for free on a range of devices including smartphones, personal computers and consoles.
Fortnite — the star of Los Angeles’ Electronic Entertainment Expo video game extravaganza in Los Angeles in June — still remained the top money maker on consoles in July, according to SuperData.
However, the game faces increasing competition as game makers add battle royale modes to popular titles and promote eSports leagues to win over players.
Metrics from Amazon-owned game play streaming service Twitch on Thursday showed that “Dota 2” was the most popular title with viewers so far in August, relegating “Fortnite” to second place.
Players worldwide spent $8.2 billion on digital games in July, in a 3 percent increase from the same month late year, SuperData said. — AFP

Siemens denies plan for mass job cuts

Frankfurt am Main, Germany — German industrial conglomerate Siemens denied Friday a media report that it would cut thousands of jobs as part of a massive restructuring plan.
“The report claiming that 20,000 jobs are to be cut… is completely unfounded”, the firm said in a statement.
Business monthly Manager Magazin’s online edition reported Thursday that Siemens chief executive Joe Kaeser had told an investors’ roadshow this month that 20,000 administrative jobs could become superfluous under the group’s “Vision 2020+” strategy.
“We do not follow the reasoning behind the figures named in the magazine article. No statements of this kind were made,” Siemens responded.
Under the Vision 2020+ scheme, individual businesses within the sprawling Siemens empire — whose products range from gas turbines and trains to industrial robots and medical scanners — will have more freedom to set their own priorities.
The group hopes the plan will help boost revenue and profitability.
“The newly formed Operating Companies are currently working on the detailed planning. There are no plans for a company-wide cost-cutting programme initiated by Siemens headquarters,” Siemens said.
Munich-based Siemens has already weathered outrage this year after announcing it would slash 7,000 jobs at its power and gas division.
German workers successfully battled to save plants in the capital Berlin and in Goerlitz, on the border with Poland.
As well as denying plans for mass layoffs, Siemens said it would add some 10,000 jobs to its Internet of Things unit by 2025.
The group currently employs almost 380,000 people around the world. — AFP

Oil bounces after longest losing run since 2015 on supply risks

The prospect of tighter supplies from the U.S. to the North Sea and Iran is helping oil recover this week from the longest losing streak since 2015.
Futures in New York are headed for a 3.7 percent gain this week, the first advance in two months. In the U.S., latest data showed stockpiles dropped by more than twice what analysts had expected, while supplies in the North Sea are under threat from labor strikes at Total SA’s fields. Uncertainty also persists over how Iran’s exports will be affected by impending American sanctions against OPEC’s third-biggest producer.
The risk of supply disruptions as U.S. inventories shrink is easing pressure on crude, which had fallen in mid-August to the lowest level in over two months. Everything from emerging market turmoil to a U.S.-China trade tiff and signs that OPEC will fill any potential supply gaps had dragged prices down. Also contributing to the decline was a gain in the dollar, which reduced the appeal of commodities priced in the currency.
“The larger-than-expected decrease in U.S. stockpiles, coupled with the uncertainty surrounding Iranian supplies, have pushed up oil prices this week,” Kim Kwangrae, a commodity analyst at Samsung Futures Inc., said by phone from Seoul. “But further increases will come under pressure as political issues such as the trade war are still ongoing.”
West Texas Intermediate crude for October delivery traded at $68.34 a barrel on the New York Mercantile Exchange, up 51 cents, at 2:35 p.m. in Singapore. The contract dipped 3 cents to settle at $67.83 on Thursday. Total volume traded was about 18 percent below the 100-day average.
Brent for October settlement increased 45 cents to $75.18 a barrel on the London-based ICE Futures Europe exchange. The contract is up 4.7 percent on the week. The global benchmark crude traded at a $6.85 premium to WTI.
U.K. Strike
Futures for December delivery was 0.9 percent higher at 512.6 yuan a barrel on the Shanghai International Energy Exchange. The contract is up 3.2 percent this week.
In the U.K., talks between union members and North Sea platform operator Total broke down, according to union Unite. As a result, a series of 12-hour stoppages on the platforms was planned to take place on certain days in September and October on the fields that affect North Sea oil and gas production.
Stockpiles Slide
Elsewhere, government data on Wednesday showed U.S. crude stockpiles declined by 5.84 million barrels last week, more than the 2 million decline that was expected in a Bloomberg survey of analysts.
Meanwhile, industry consultant FGE predicts that Iranian oil exports will drop below 1 million barrels a day by the middle of next year after the U.S. reimposes sanctions targeting its crude in early November. The Persian Gulf nation has shipped about 2.5 million barrel a day of crude and condensate so far this year, it said in an Aug. 23 note.
Still, investors are also wary that a dispute between the U.S. and China could imperil global economic growth and weaken energy demand. Trade talks between the nations wrapped up Thursday without major progress, setting the stage for further escalation of the conflict between the world’s two largest economies.
While the conclusion of talks came just hours after the two nations unveiled their latest round of tit-for-tat tariffs, the U.S. is preparing a bigger tranche of tariffs on some 6,000 Chinese products to take effect as early as next month. — Bloomberg

Monetary policy via Facebook is Southeast Asia tool in turmoil

As the economic landscape gets more rocky, Southeast Asia’s central bankers are turning to Facebook and YouTube for help in getting their messages across.
The Bank of Thailand was the latest to adopt a live video-streaming of its policy announcement in August, three months after the Philippine central bank did the same. Bank Indonesia, which has more Twitter followers than the Federal Reserve, recently stepped up broadcasts of its policy decisions to every month.
Central bankers are using social media to keep markets calm and to help explain their decision-making more directly to households that are feeling the pinch from currency turmoil and rising prices. Of the five main central banks in the region — Indonesia, Thailand, Singapore, the Philippines and Malaysia — only the Bank of Thailand hasn’t tightened policy yet this year.
“The messaging definitely has been more clear, stronger, and they’re following through,” said Priyanka Kishore, head of India and Southeast Asia economics at Oxford Economics Ltd. in Singapore. “Part of it is education,” for public consumption, while for the market, it’s about “giving out a feeler, and influencing a decision from analysts.”
Malaysia and Singapore have traditionally only published statements for their policy decisions, but the rest of the five Southeast Asian central banks have moved to video-streaming. Here’s how they are boosting their communications efforts:
Thailand
Bank of Thailand policy makers used Facebook Live for a debut live-stream of their decision on Aug. 8 to keep interest rates unchanged.
While the bank’s Facebook page has kept up a lively conversation for a couple of years already, the adoption of Facebook Live is an “extension of the static Facebook message which allows the general public and analysts to follow BoT events directly and at their own convenience,” said Assistant Governor Chantavarn Sucharitakul, a spokesperson for the bank.
Other government agencies, like the National Economic and Social Development Board, which releases quarterly economic growth data, already use Facebook Live.
Chantavarn said that despite the broad outreach effort, the question-and-answer session for the central bank policy decision is still reserved for professional media. The bank also holds private sessions with researchers, analysts and market participants to discuss more technical details of the policy deliberations.
Indonesia
The social media team at Bank Indonesia has picked up its presence under new Governor Perry Warjiyo. The YouTube live-stream videos of the central bank meetings, which began on a quarterly basis in November 2015, are now conducted monthly.
The central bank has its own channel on YouTube, and last year added an Instagram account to its social media repertoire, which also boasts a Facebook feed started in 2016 and a popular Twitter following.
“Communications are intensified because Governor Perry believes transparency and communication are an integral part of a central bank’s way to strengthen policy credibility,” said Agusman, a spokesman for the central bank who goes by one name. “Governor Perry says that managing and influencing expectations in the money market are an important part of a policy’s effectiveness.”
Bank Indonesia — which has been the most aggressive in Asia with four rate hikes since mid-May — also has the general public in mind with its social media outreach, including its efforts to minimize disinformation, Agusman said.
“The main audience target of live-streaming are market players, banks, academics, economists, who directly need complete information from the central bank,” he said. “But in practice, live-streaming is also watched by students, young people and netizens who generally want to learn.”
Philippines
Bangko Sentral ng Pilipinas live-streamed its policy announcement for the third time earlier this month, when it raised interest rates by a bigger-than-usual 50 basis points to curb inflation.
“We hope that through live broadcasts we could expand Filipinos’ understanding of monetary policy,” including an estimated 67 million Facebook users, Governor Nestor Espenilla said in a written statement in response to questions about the communications strategy. Based on readability, the central bank’s statements alone “may not really be for a wider audience,” according to tests conducted by the BSP.
Given that the central bank itself scored low in a recent public survey on how consumers learn about its operations, “there is ample room to expand the BSP’s digital presence,” said Espenilla. The goal is also to see policy messages in those live-stream videos organically replicated — through re-posts of video clips or graphics built off information provided during the briefings, he said.
The central bank has faced criticism this year of being too slow to act against inflation and sending mixed signals about policy intentions, which analysts say contributed to the peso’s slide. The currency has slumped 6.6 percent against the dollar so far this year, making it one of the worst performers in Asia.
Espenilla said the central bank has ramped up its Twitter presence and its meetings with private-sector economists and market analysts. The feedback so far has been that the meetings allowed the officials to “effectively explain” decisions and intentions, he said.
The broadening of communications is particularly vital amid turbulent times in the global economy, the governor said.
“Most central banks would agree that communication is particularly challenging during a tightening cycle,” he said. “Thus, live streaming allows direct communication to stakeholders with less room for misinterpretation.” — Bloomberg

BGC to follow one-way traffic next month

Bonifacio Global City (BGC) is set to implement a one-way traffic scheme in select roads next month to address the worsening traffic in the business district.
Starting Sept. 17, the new traffic policy will be implemented on the road connecting 30th Street, Rizal Drive, 28th Street and 11th Avenue. The same will be for the route linking 7th Avenue, Federacion Drive, 9th Avenue, 34th Street and 8th Avenue.
“A one-way traffic flow is the most efficient traffic circulation scheme for BGC’s street grid network because it maximizes the width of the street that is available for traffic, reduces the conflicts between vehicles and pedestrians at intersections, and minimizes the time that vehicles and pedestrians are stopped at traffic signals. Overall, BGC should become less congested and faster to travel in with a one-way traffic scheme” Bonifacio Estate Services Corporation General Manager Jun Galvez said in a statement on Friday.
It noted that the same scheme was implemented in the Makati central business district before, and was seen to ease the traffic in the area.
Being a similarly busy location filled with various establishments such as high-rise condominiums, offices, malls and museums, using the same strategy on BGC streets is hoped to produce the same results.
“To make sure that the new one-way scheme will become effective, BGC will continue its existing wheel clamping and towing operations to curb illegal street parking and keep its major streets free of obstructions,” it said. — Denise A. Valdez

Asian markets mixed after trade talks

Hong Kong — Asian markets were mixed on Friday as China-US trade talks wrapped up with little progress being made, while the dollar held up ahead of a key speech by the head of the Federal Reserve.
The Australian dollar pared losses and stocks inched up after the governing Liberal Party elected a new business-friendly prime minister, ending a period of political uncertainty.
Officials from Beijing and Washington finished a two-day meeting that saw what the Chinese side described as “constructive and frank” discussions on trade.
The low-level negotiations were the first since the world’s top economies began exchanging tit-for-tat tariffs in July and came as they imposed fresh measures on billions of dollars more in goods.
“The two sides will keep contact regarding future plans,” China’s Commerce Ministry said in a brief statement, while the White House said the talks concluded after officials “exchanged views on how to achieve fairness, balance and reciprocity in the economic relationship”.
By the end of the day Tokyo was up 0.9 percent as a weaker yen helped exporters, while Shanghai added 0.2 percent.
Seoul gained 0.5 percent and Wellington added 0.2 percent. But Hong Kong lost 0.4 percent in the afternoon and Singapore slipped 0.8 percent with Taipei, Manila and Jakarta also down.
Sydney’s under-pressure S&P/ASX 200 fluctuated through the day and ended up 0.1 percent after the Liberals elected Scott Morrison as prime minister.
The former treasurer took the reins after beating hardliner and populist Peter Dutton, who had moved to replace Malcolm Turnbull in a shock revolt earlier this week sending Australian markets spinning.
The Australian dollar fell about 0.8 percent in the morning but clawed back in the afternoon to sit 0.2 percent lower.
Elsewhere on currency markets the US dollar fluctuated but was holding gains ahead of the annual Jackson Hole symposium of central bankers, where Fed boss Jerome Powell is due to speak later Friday.
While his remarks will be pored over for clues about the bank’s policy plans, they will attract more interest after Donald Trump’s criticism this week of its recent interest rate hikes and accusations it is not backing his economic agenda.
The comments, which also saw the president refuse to explicitly back the Fed’s independence, dented the dollar this week.
“Any comments on current Fed policy will draw even more than the usual attention given recent and unprecedented criticism of the Fed by President Trump,” Larry Hatheway, chief economist at GAM Investments, told Bloomberg News.
“While Powell prefers to speak plainly and in non-technical terms, he may find reason to take a more guarded approach in order to avoid the appearance of open conflict with the administration.”
In early European trade London and Paris each edged up 0.1 percent while Frankfurt added 0.2 percent. — AFP

Chinese casino tycoon ‘missing’ as stocks plunge

Hong Kong — Shares in an Asian casino operator plunged almost 20% in Hong Kong on Friday as it said its tycoon head had gone missing, the latest setback for the firm after a project in Manila had been stopped.
Landing International Development said in a filing to the Hong Kong exchange Thursday that chairman Yang Zhihui could not be found, hours after its share price had crashed 35% before being suspended in the morning.
When trading restarted early Friday it dove another 18% to HK$3.08 by the break.
Landing said in the statement it had “noted the fluctuation in the price and trading volume of shares of the company on 23 August 2018 and confirmed that the company has been unable to contact or reach Mr. Yang Zhihui … since 23 August 2018”.
“To the best knowledge of the board, the business operations and financial positions of the group are normal,” Landing said in its statement to the exchange, adding that the “temporary absence” of Yang would not affect its operations.
Yang is the company’s largest shareholder with a 50.5% stake. Landing said it was making attempts to contact him.
Earlier this month Philippine President Rodrigo Duterte pulled the rug out from Landing’s new $1.5 billion casino project in Manila, saying the terms of the lease agreement were flawed.
Duterte ordered a review of the lease just as the project was supposed to break ground.
Landing opened integrated casino resort Jeju Shinhwa World in Korea in March this year. — AFP

Peso slightly strengthens in quiet trading

The peso gained some strength on Friday, Aug. 24, as some investors took profits from a stronger dollar earlier this week, although trading remained quiet due to lack of leads.
The local unit closed the week at P53.465 versus the greenback to mark a slight appreciation coming from the P53.48 finish on Thursday. This was the peso’s strongest rate since the P53.425 close on Wednesday.
The peso opened weaker at P53.51 per dollar and even hit P53.52 as its intraday peak. The currency touched P53.46 as its best showing during the session before settling at the closing rate.
Sought for comment, one trader pointed out that trading has been generally muted on Friday due to lack of substantial market movers.
“The peso moved sideways, it was very quiet today. There’s not much going on,” one trader said, even as he noted that the dollar picked up strength overnight.
The trader pointed out that players are likely watching out for the upcoming speech of United States Federal Reserve chair Jerome H. Powell on Friday night. He noted, however, that there is a “risk-off” tone among investors.
Players have long priced in another tightening move from the US Fed on September, and await cues from Mr. Powell towards this end.
Financial markets will be closed on Monday, Aug. 27 as the country observes the National Heroes’ Day holiday. — Melissa Luz T. Lopez

PNB hires former HSBC CEO to replace retiring president

Philippine National Bank (PNB) president Reynaldo A. Maclang will retire from his post mid-November, to be replaced by a bank executive from a global bank.
In a disclosure on Friday, the listed lender announced that its board of directors has approved the retirement of Mr. Maclang as bank president, chief executive officer (CEO) and director effective Nov. 15. However, he will continue to serve as board advisor.
In turn, PNB has also confirmed that Jose Arnulfo “Wick” A. Veloso will replace Mr. Maclang by Nov. 16, as approved by the bank’s board on the same meeting.
Mr. Veloso announced his resignation as president and CEO of the Hong Kong and Shanghai Banking Corp. (HSBC) Philippines last Monday. The London-based bank said it will announce who their next top official will be “in due course.”
Sources have flagged Mr. Veloso’s transfer but PNB only made the announcement after the board gave its formal approval Friday morning.
Mr. Veloso has been HSBC’s bank president since December 2012, and was the first Filipino to be take the post. He is also vice chair of the Open Market Committee of the Bankers Association of the Philippines.– Melissa Luz T. Lopez

SC denies De Lima’s request to attend oral arguments on ICC

The High Court dismissed detained Senator Leila M. De Lima’s motion for reconsideration regarding her petition to personally appear in the oral arguments of the Philippines’ exit from the International Criminal Court (ICC).
The Supreme Court (SC) said in a statement on Friday that it “denied the pending Motion for Reconsideration” of Ms. De Lima.
“The Court, in denying petitioner’s motion for reconsideration, found that no new argument had been presented to warrant a reconsideration of its earlier resolution,” the SC said.
The High Court already denied Ms. De Lima’s manifestation with motion to attend the oral arguments in its en banc session last August 14. The detained senator filed her motion for reconsideration two days after.
Ms. De Lima and other minority Senators Francis N. Pangilinan, Paolo Benigno A. Aquino IV, Risa N. Hontiveros-Baraquel, and Antonio F. Trillanes IV, filed a case in the SC which questioned the validity of President Rodrigo R. Duterte pulling the Philippines out from the ICC. — Gillian M. Cortez

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