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BSP ready to tighten policy again if needed

THE BANGKO SENTRAL ng Pilipinas (BSP) is ready to tighten monetary policy further to rein in prices and support the peso if needed, Deputy Governor Diwa C. Guinigundo said.
“If the peso depreciation will impinge on our ability to maintain the stability of prices, we will not hesitate to sustain our vigilance and continue to tighten monetary policy,” Mr. Guinigundo said in an interview in Bali on Wednesday.
“Our primary mandate is price stability and we intend to do just that.”
The BSP has delivered 150 basis points of interest-rate increases since May, among the most aggressive in Asia. Policy makers are battling surging prices and a weakening currency with the Philippines among those in Asia hardest hit by an emerging-market rout.
Inflation accelerated to 6.7% in September, the fastest pace in more than nine years, mainly on food and fuel prices.
That could have been the peak as measures including the rate hikes start to take effect, Mr. Guinigundo said.
The central bank’s target is for annual inflation to average 2-4% in 2019 and 2020. Inflation could go back to the target range next year once a bill that liberalizes rice imports is passed and implemented, Mr. Guinigundo said.
Tax increases on fuel, sugary drinks and cigarettes implemented at the start of the year have boosted prices. Shortages in the supply of rice, the nation’s staple food, and a more than seven percent slump in the currency this year, further exacerbated price pressure.
OPTIMISTIC
Mr. Guinigundo said he remained optimistic about the country’s economic growth prospects, citing increasing productivity and the government’s infrastructure spending.
Gross domestic product growth slowed to a three-year low of six percent in the second quarter, with the government set to report third-quarter data on Nov. 8.
“Even if you have the impact of the 150-basis points tightening of monetary policy, I think we should have some cushion or counterweight in terms of government spending on infrastructure,” he said.
President Rodrigo R. Duterte has started a $170-billion program to upgrade the nation’s dilapidated airports, roads and bridges.
The central bank expects greater stability in the currency in the fourth quarter as remittances from overseas Filipinos come in ahead of the holidays.
Asked to comment on the perception that officials acted too late and now have to do more to curb inflation, Mr. Guinigundo said market participants and economists should look at the bigger picture.
“This is a manifestation of tyranny of the market” as monetary policy can’t be used to solve supply issues, the central bank official said. — Bloomberg

Two more tax reforms move towards final House OK

By Charmaine A. Tadalan
Reporter
THE HOUSE of Representatives on Wednesday night approved on second reading a proposed reform that will give the government a bigger share in miners’ revenues and will standardize real property valuation and assessment by local governments.
The chamber approved House Bill (HB) No. 8400, An Act Establishing the Fiscal Regime for the Mining Industry, which will raise the effective tax rate (ETR) on the industry to 24.33% from 21.48% currently that is already among the highest in Asia.
“[The] existing [ETR] is 21.48%, DoF (Department of Finance) is 29.18%. These numbers, including [the] HB ETR, are based on the FS (financial statements) of 55 large taxpayers of BIR (Bureau of Internal Revenue),” DoF Director Elsa P. Agustin explained in a mobile phone message on Thursday.
House Ways and Means committee chairperson Rep. Estrellita B. Suansing of Nueva Ecija’s 1st district said the bill will be taken up on third reading as soon as lawmakers return from their Oct. 12-Nov. 11 break.
“Third-reading for mining tax is when we resume in November,” Ms. Suansing said in a text message, adding that the plenary will likely shift its attention afterwards to the proposed general tax amnesty bill which her committee approved in September.
“Next… priority bill is the tax amnesty bill.”
The proposed mining tax reform will cut the royalty on large-scale mining operations in mineral reservations to three percent from the current five percent based on gross output, as opposed to the DoF proposal to impose a five percent royalty based on gross output across all mining operations, large and small.
It will also impose a 1-5% margin-based royalty on all large-scale mining companies outside mineral reserves, specifically: one percent for mining companies with 1-10% margin; 1.5% for mining firms with above 10% to 20% margin; two percent for those with above 20% to 30% margin; 2.5% for those with above 30% to 40% margin; three percent for firms with above 40% to 50% margin; 3.5% for those with above 50% to 60% margin; four percent for those with above 60% to 70% margin and five percent for miners with margins beyond 70%.
Small-scale miners, meanwhile, will be levied a royalty equivalent to one-tenth of one percent of gross output, whether the contractor operates within or outside mineral reservations.
The bill defined margin as “the ratio of income from mining operations before corporate income tax to gross output” and gross output as “the actual market value of minerals or mineral products from each mine or mineral land operated as a separate entity, without any deduction for mining, processing, refining, transporting, handling, marketing or any other expenses.”
The royalty will be imposed on top of other taxes, such as the corporate income tax, excise tax which the Tax Reforms Acceleration and Inclusion Act (TRAIN) doubled to four percent, the royalty to indigenous communities, and local business tax among others.
Moreover, the proposed measure will also introduce a 1-10% margin-based windfall profit tax on income before the corporate income tax: a one percent windfall profit tax on mining businesses with over 35% to 40% margin; two percent if over 40% to 45% margin; three percent if over 45% to 50% margin; four percent if over 50% to 55% margin; five percent if over 55% to 60% margin; six percent if over 60% to 65% margin; seven percent if over 65% to 70% margin; eight percent if over 70% to 75% margin; nine percent if over 75% to 80% margin; and 10% if over 80% margin.
The measure also introduced a provision disallowing deduction of interest expense once a miner records a 3:1 debt-to-equity ratio, which reflects how much a company is financed by debt.
Also on Wednesday, the chamber approved on second reading HB 8453, or the proposed Real Property Valuation and Assessment Reform Act.
It will mandate the Finance department’s Bureau of Local Government and Finance (BLGF) to develop and maintain a uniform valuation standard, consistent with international standards, which will guide local government appraisers and assessors in preparing their schedules of market value (SMV).
SMVs will be submitted to the regional offices of the BLGF and the Bureau of Internal Revenue for review.
Reviewed SMVs will then be subject to approval of the Finance Secretary.
“The approved SMV shall be used as basis for the determination of real property-related taxes of national and local governments,” the bill explained.

Captivating Stockholm: Small, old city packs a wallop


Text and photos by Kap Maceda Aguila
OUR beeline to Sweden takes us to Dubai in the Middle East, then another six-hour-plus flight to the Nordic country. A cogently woven tapestry of green and glistening swirls of water comes into view as the plane descends and breaks through a cloud bank. Arlanda International Airport goes up to meet us; a gateway into Sweden within the Stockholm County, but still some 40 kilometers south of the city that bears the name.
A light chill welcomes us as we exit the largest airport in Sweden, and board the Lexus RX 450h SUV sent to take us to our hotel. Past low buildings and undulating countryside through well-maintained thoroughfares, we finally reach the urban center.
It takes but a moment to notice a preponderance of bridges across meandering water. There are more than 50 of them spanning the 14 islands comprising the capital — each a unique venue to take in the sights. No surprise then that Stockholmers call their scenic home “beauty on water.” Our driver indulges us with an unscheduled stop at the Pålsundet or Långholmen Canal for some photos and to admire the view. From the bridge, you can see that either bank has a line of canoes or small boats owned by paying members. People can also rent watercraft if they have a penchant for paddling in the placid water.
Lake Mälaren is a constant presence for Stockholmers as its stretches a vast 120 kilometers from east to west — seemingly running through the land like veins. Follow it down any of the three ways it drains — naturally through Norrström and via the manmade Södertälje Canal and Hammarbyleden waterway — and you’ll end up in the Baltic Sea.
STOCKHOLM SYNDROME
But first, a word on our hotel. The Nobis on Norrmalmstorg proves ideally situated, excellently appointed lodgings, but it also earns popularity via a dark — or perhaps, curious — moment in the building’s past. It is an event that spawned the famous phrase “Stockholm Syndrome,” used to describe the situation when hostages sympathize or identify with perpetrators. On the Nobis Stockholm website itself: “One summer day in August 1973, four people… employed at Kreditbanken in Norrmalmstorg, which today is Nobis Hotel (were) taken hostage.” Jan-Erik Olsson, a convict on parole demanded three million kronor in cash as well as the release of Clark Olofsson from Norrköping prison. The duo held the captives for six days in one of the bank’s vaults. After being rescued, the hostages refused to testify in court against them.
While the bank has been repurposed into the Nobis, the hotel’s interiors are distinctly 19th century “bourgeois stone architecture” protected by government fiat.
We are in Sweden to experience the recently launched premium compact crossover from Lexus, the UX.
First presented to the world last March at the Geneva International Motor Show, the UX takes its place as the smallest SUV in the Lexus lineup, offering “the brand’s innovative design, luxury features, and advanced safety in a package that combines charismatic new styling elements and ultra-efficient new powertrains.” It should be in the Philippines before year’s end.
“The reason we selected Stockholm… is because the energy and creativity that this city has is world-class,” begins David Nordstrom, Lexus Asia-Pacific vice-president, during the product presentation held at the Delight Studios in Nacka which we reach after a short walk and boat ride. “It’s often referred to as the world’s biggest small town. It’s lot smaller in size when compared to other European cities like London, Paris, Berlin, and Rome. So it gives you a small-town feel with world-class amenities.”
SEAFOOD
And, oh, the food. While carnivores (moose steak and reindeer casserole, anyone?) can have their choice in this cosmopolitan city, the smart money should be on the fresh and impressive sea harvest. Try the curiously named yet internationally famous gravlax or dry-cured salmon. Herring and trout dishes also figure prominently on the menu of restaurants around Stureplan and Kungstraädgården. Our dinner at the Wedholm Fisk a few minutes by foot from the Nobis starts with saffron-scented fish soup with shellfish herb aioli and toasted brioche; then seared king scallops with chilled crème onion, king crab aioli, and baby herb leaves. But the star of dinner is the divine fricassee of sole, turbot, lobster, in champagne sauce. “It’s our specialty. I’m glad you liked it,” our affable waitress declares with a smile as she notes we have emptied our bowls.
Next day at lunch, we find ourselves at the historic Den Gyldene Freden (“The Golden Peace”). Located in the Old Town (or Gamla stan), it earns a Guinness Book of Records entry for having its surrounding and environment more or less unchanged since the establishment opened in 1722. Our meal here commences with mushroom soup and an interesting salmon terrine with hazel pesto and beans. For the entrée, I try the meatballs (“It’s not like Ikea’s,” our server quips with a wry smile), served with pickled cucumber, cream sauce, and potato puree. I order a light beer to go with it. Speaking of, in Stockholm, beer is ordered in strengths from lättöl (light) to starköl (strong). Contrasted with delightful lingonberries served on the side, the meatballs are filling and satisfying. We finish off with a salty caramel truffle that skews more to the salty side.
We walk off with heavy guts and roam the storied cobblestone streets of this medieval town. Spying a gathering crowd at one of the side streets, our qualified guide Veronica Melosso points that it’s the Mårten Trotzigs Gränd, the narrowest street in Stockholm. Thirty-six steps down from Prärsgatan, the alley shrinks to a width of 35 inches in its most constricted section.
A PALACE
The Royal Palace (Kungliga Slottet) has been the official abode of the Swedish monarch since the middle of the 13th century. While the actual residence of the present King Carl Gustaf XVI and Queen Silvia is the Drottningholm Palace, the Kungliga Slottet is used for official purposes and functions. Within it are the so-called Royal Apartments — a “collective name for magnificent state rooms used for (royal) receptions.” Presently undergoing deliberate and painstaking renovation/restoration work, the palace boasts some 1,430 rooms (660 with windows). The Guest Apartments were furnished in the 1760s under the direction of Jean Eric Rehn.
Heavy curtains keep the sunlight away to protect the frescoes and tapestries within — mute witnesses to centuries of memories both bitter and sweet. In one section, the deathbed of King Gustav III had been reconstructed for the commemoration of his 200th death anniversary in 1992. The monarch was assassinated — succumbing to a gunshot wound in March 29, 1792.
The palace is a true museum, showcasing the nation’s treasure trove of paintings, frescoes, and sculptures. The Rodin-esque The Wave and the Beach marble creation by Theodor Lunberg, made in 1898, depicts naked lovers locked in a kiss but with their eyes open. Meanwhile, The Goddess Juno with the child Hercules (completed around 1820) by Johan Niclas Byström shows a baby surreptitiously nursing at the teat of a slumbering Juno.
VASA AND ABBA
If you have time (and I suggest you allot up to an hour), beat a path to the Vasa Museum (Vasamuseet) on Djugården Island. This facility is the most visited museum in all of Scandinavia. Within its air-conditioned interiors is the resurrected 64-gun warship Vasa that tragically foundered on its maiden voyage on Aug. 10, 1628 — a mere 1.3 kilometers after setting off for Älvsnabben naval station. When its four sails were set, a gust of wind caused the ship to heel suddenly to port. The sheets were cast off, allowing the Vasa to right itself. At Tegelviken, a stronger gust pushed the ship to its port so far that the open lower gunports went under the surface, causing the ship to take in water, eventually leading to its sinking.
It was salvaged with a largely intact hull in 1961. It was housed in a temporary museum called Wasavarvet (“The Wasa Shipyard”) until 1988 and then moved permanently to the Vasa Museum. Along with the spectacle of tragedy, the Vasa and the corollary displays gives crucial insight into a bygone era and way of life.
Finally, while still in Djugården, drop by ABBA The Museum, an interactive exhibition devoted to the iconic pop act that was one of the most commercially successful acts in history. Consider that the combined worth of its members — Agnetha Fältskog, Björn Ulvaeus, Benny Andersson, and Anni-Frid Lyngstad — is about a billion US dollars.
Fans will invariably freak out over the massive compendium of all things about the Swedish quartet which dominated the airwaves and music charts in the 1970s and ’80s. Everything from their costumes, to trivia, to microphones, studio setup, dolls, wax figures, and more will take you back to the day this winsome foursome held sway. Check out the ABBA souvenirs and sundry you can get at the gift shop. Scented candles, mugs, keychains, buttons and pins, refrigerator magnets, coloring books, music boxes (playing “Dancing Queen” or “Mamma Mia”) and even bottled water will scratch your ABBA itch. Presently attached is a temporary museum, an exhibit entitled Guitars of the Stars featuring signature instruments of legendary guitarists like Jimi Hendrix, BB King, Eric Clapton, and Kirk Hammett. This collection is owned by musician and producer Claes “Clabbe” af Geijerstam, who was ABBA’s on-tour sound technician in the 1970s.
Inevitably, you will leave this charming city enamored by its people’s seemingly easygoing, unhurried way of life that is both rooted in the present yet completely celebratory of a rich and tangible past. Just like many Stockholmers, after a while you attain a sense of peace in knowing everything works and is exactly where it needs to be.

Sept. auto sales fall 9.7%


VEHICLE SALES slipped nearly 10% year-on-year in September, according to the joint report issued by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).
A total of 31,116 units were sold during the month, 9.7% lower than the 34,445 units sold in September 2017.
However, CAMPI noted the September sales figure is a 2.6% increase from the 30,313 units sold in August.
CAMPI President Rommel R. Gutierrez said the introduction of new models helped drive sales growth for two straight months.
“We remain optimistic that this trend will be sustained before the year ends, as we expect boost in sales from the upcoming 7th Philippine International Motor Show this month and the Christmas season,” he said in the statement.
The auto industry has slumped this year with the implementation of the first package of the Tax Reform for Acceleration and Inclusion law.
The tax reform program imposed higher excise taxes on vehicles, with those costing P600,000 and below being taxed 4%, up from 2%. The tax on cars priced between P600,000 and P1 million was adjusted to 10%, from the previous charge of P12,000 plus 20% of the amount in excess of P600,000.
For the first nine months of 2018, vehicle sales dropped 13.8% to 261,057 units, from 302,869 units sold during the same period last year.
CAMPI is one of two automotive associations that releases data on auto sales, with a membership consisting of auto companies that assemble locally. The association’s sales figures reflect the state of the market for mass-market cars, compared to higher-end cars which are usually imported.
Commercial vehicle sales, a proxy for durable-goods investment and broader economic activity, dropped 9.4% year-on-year in September to 21,675 units. For the nine-month period, commercial vehicle sales fell 10.6% to 179,979 units year-on-year.
Passenger car sales declined 10.2% annually to 9,441 units in September. This brought the nine-month sales of passenger sales 20.2% lower to 81,078 units.
Toyota Motors Philippines Corp. continued to lead the market, accounting for 42% of year-to-date sales. Mitsubishi Motors Philippines Corp. followed with 19.38% market share, and Nissan Philippines, Inc. with 9.39%.
Rounding up the top five are Ford Motor Company Phils., Inc. with 6.94% and Honda Cars Philippines, Inc. with 6.67%. — J.C.Lim

Peso depreciation weighs on energy companies

By Victor V. Saulon, Sub-editor
ENERGY COMPANIES have counted the cost of the peso depreciation against the US dollar, prompting them to adopt measures to soften the impact on their finances, operations and investment decisions.
“In the short-term operating perspective, you’d have to worry if the movement, the devaluation of the peso, has an impact on the growth rate of the economy,” said Joseph S. Yu, president and chief executive officer of SN Aboitiz Power (SNAP), the joint venture of Norway’s SN Power AS and Aboitiz Power Corp.
“If it becomes inflationary, it begins to affect the growth rate and that affects the entire pricing structure in the market,” he said in an interview.
For SNAP, which owns a number of hydroelectric power plants in north Luzon, that pricing structure affects the development of its projects, the latest of which is an energy complex composed of the 20-megawatt (MW) Ollilicon and the 120-MW Alimit hydro power plants.
“In the long term, if you look at developing projects, the investment cost of projects would go up from a peso perspective. So a project, let’s say $500 million like Alimit, if that would have been P25 billion if it’s P50 per dollar, and then if it were now P60 that would become a P30-billion project,” Mr. Yu said.
“And then you could see how it would make it much, much more difficult if you had to recover the investment of something like that,” he added.
SNAP has temporarily suspended the technical studies for the third component of complex, the 250-MW Alimit pumped storage facility, because of “market constraints.”
Angelito U. Lantin, Manila Electric Co. (Meralco) senior vice-president, shared the same sentiment as its unit Meralco PowerGen Corp. (MGen) is building several power plants, which are now in different stages of development.
“I think P47 [to a dollar was the exchange rate] at the time when we submitted the PSA (power supply agreement) to ERC (Energy Regulatory Commission). Now it’s over P54 so makikita mo na lang ‘yung (you’ll see the) percentage [difference],” he said.
“Our equipment are mostly, well all of it, are imported so we have to pay in US dollars. And then, of course, you pay pesos to acquire the dollars. Now you need to have more pesos to buy the dollars so that you can purchase the imported equipment,” he said.
MGen is leading the development of three power plants — all coal-fired. Its unit Atimonan One Energy, Inc. (AIE) is building a two-unit ultra supercritical coal-fired power plant, each with a capacity of 600-MW in Atimonan, Quezon.
Another unit, San Buenaventura Power Ltd. Co. (SBPL), is constructing a 455-MW facility in Mauban, Quezon province. It will be the country’s first supercritical coal-fired power plant. The plant was targeted to be completed in mid-2019.
The third project, a coal-fired power plant under Redondo Peninsula Energy, Inc., has two units, each with a capacity of 300 MW using the circulating fluidized bed technology.
Of the three, only SBPL secured project financing, through a P42.15-billion omnibus agreement for a senior-term loan with several banks. For AIE, MGen previously said it had signed mandate letters with seven banks for the debt financing portion or P107 billion of the P135-billion project.
LOSSES
For state-led Power Sector Assets and Liabilities Management Corp. (PSALM), the losses from the weakening peso are huge and expanding.
“Sadly, we get hit around P8.4 billion for every peso devaluation. Medyo malaki siya (It’s quite big) but then we just have to do our best under the circumstances,” said Irene Joy B. Garcia, PSALM president and chief executive officer.
PSALM, which has the bulk of its debts denominated in dollars, is now trying to optimize and move forward with privatizing the government’s energy assets — its mandate under the law.
Ms. Garcia said the company had changed its strategy by now focusing on the sale of its real estate holdings.
“In fact, we have streamlined and parang (sort of) fixed the rules for privatization for the real property assets so that once we roll that out mas mabilis na (it will be faster) and we can generate more income,” she said.
PSALM has lined up for sale several real estate assets this year and next. Earlier this month, it called on bidders to signify their interest to participate in the privatization of the 650-MW Malaya thermal power plant Pililla, Rizal and its underlying land. It also plans to rebid a 20,975-square-meter land in Manila on which a thermal power plant used to stand.
“One of the things that I have done when i came into office is really to review all the receivables, [the] unpaid loans of a lot of the electric cooperatives… We have reached out to them to try to come up with a reasonable payment arrangement kaysa (instead of) zero,” she said.
Ms. Garcia, who assumed her post in May this year, said the compound on which state-led National Power Corp. and privately owned National Grid Corporation of the Philippines stand on are up for re-development to generate more income for the company.
With expectations of the peso weakening further against the dollar, the future looks bleak for these companies.

2 romances, a horror flick, and a family drama make up the final four MMFF entries

AFTER MONTHS of waiting, the Metro Manila Film Festival (MMFF) selection committee finally announced the final four of eight film entries which will be featured in the festival’s run from Dec. 25 to Jan. 7 in cinemas nationwide.
The MMFF selection committee, headed by National Artist for Literature Bienvenido Lumbera, previously announced the first four entries — chosen on their scripts — in June, while the last four entries — chosen from submitted completed films — were announced on Oct. 9 at Club Filipino in Greenhills.
The four new films are Mary, Marry Me, a romantic comedy by RC delos Reyes starring Sam Milby, Toni Gonzaga, and Alex Gonzaga; One Great Love, a romantic film directed by Eric Quizon and starring Dennis Trillo and Kim Chiu; OTLUM, a horror film by Jovinor Tan and starring Ricci Rivero, Jerome Ponce, and John Estrada; and Rainbow’s Sunset, a family drama by Joel Lamanagan and starring Gloria Romero, Eddie Garcia, and Tony Mabesa.
They join the first four films chosen from the script submissions: Aurora, a horror/thriller directed by Yam Laranas which is set in Batanes and stars Anne Curtis-Smith; Fantastica: The Princesses, the Prince and the Perya, a comedy directed by Barry Gonzalez and starring Jose Marie “Vice Ganda” Viceral, Maris Racal, and Maymay Entrata; Girl in the Orange Dress, a romantic comedy directed by Jay Abello (Flotsam, Namets!) which will feature Jessy Mendiola, Jericho Rosales, Sam Milby, Tom Rodriguez, and Kit Thompson; and Popoy en Jack, the Puliscredibles, an action/comedy directed by Rodel “Coco Martin” Nacianceno featuring himself and Marvic Valentin “Vic” Sotto in the lead roles.
The MMFF is the country’s largest film festival, drawing enough of an audience to earn more than P1 billion in recent years. It was established in 1974 “in recognition of the role of the film industry in providing artistic depictions of both this country’s stories and history” according to the website of the Metropolitan Manila Development Authority (MMDA) which runs the festival.
An earlier version of the festival was set up in 1966 under the name Manila Film Festival, initiated by then-Mayor Antonio Villegas as a way of getting Filipino films into the city’s so-called “first run” theaters which showed only American films back then as Filipino films were screened at second tier cinemas.
The festival will run for two weeks starting Dec. 25 in cinemas nationwide. During the run of the festival, only the official entries are shown in theaters. No foreign films will be screened for the duration. — Zsarlene B. Chua

AboitizPower gets SEC go signal to issue 2nd tranche of bonds

ABOITIZ POWER Corp. has received the certificate of permit to sell securities on Thursday from the Securities and Exchange Commission (SEC), it told the stock exchange, paving the way for the sale of the second tranche of its P30-billion debt securities program.
The listed firm said the second tranche bonds, which is equivalent to P10 billion and with an oversubscription option of up to P5 billion, will be issued on Oct. 25.
The public offer will start on Oct. 12, and end on Oct. 18.
AboitizPower previously said it would use the proceeds of the second tranche bonds to refinance the medium-term loan of its wholly owned subsidiary Therma Power, Inc., to repay its short-term loan obligations, and for general corporate purposes.
It has engaged BDO Capital Corp. as the issue manager, BDO Capital Corp., BPI Capital Corp. and United Coconut Planters Bank as joint lead underwriters, and BDO Unibank, Inc. Trust & Investments Group as the trustee, and the Philippine Depository & Trust Corp. as the registrar of the bonds.
AboitizPower intends to list the bonds with the Philippine Dealing & Exchange Corp.
Philippine Ratings Services Corp. (PhilRatings) previously rated the bonds as “PRS Aaa” with a stable outlook. The credit rating is the highest quality with minimal credit risk, which indicates the obligor’s extremely strong capacity to meet its financial commitment on the obligation.
A stable outlook means the rating is likely to be maintained or to remain unchanged in the next twelve months.
The rating and outlook were assigned based on significant levels of cash flows and financial flexibility in relation to debt service requirements; adequate capital structure supported by healthy growth in retained earnings; diversified portfolio, with good growth prospects; and experienced management team.
On Thursday, shares in AboitizPower closed higher by 2.76% or P0.90 at P33.50 each. — Victor V. Saulon

Bautista and Ledesma focus on Streisand, Legrand and Groban

LISTEN to the classic songs of Barbra Streisand and Michel Legrand alongside the more contemporary hits of Josh Groban as sung by vocal heavyweights, Kuh Ledesma and Christian Bautista at the Tent in Solaire Resort and Casino in Parañaque City on Oct. 20.
The one-night event titled Kuh Ledesma Christian Bautista Sing Streisand Groban Legrand, focuses on the songs of three artists who have shaped the careers and talents of both Ms. Ledesma and Mr. Bautista as the former noted in a press conference in September. Ms. Ledesma then said that she considers Ms. Streisand as her “true vocal coach.”
“I sing a lot of Streisand and her songs are always so complicated that it taught me where to place my voice,” Ms. Ledesma said during the press conference.
For Mr. Bautista, who first gained attention when he joined the ABS-CBN singing contest Star in a Million in 2003, Mr. Groban was a singer he was often compared to because of their similar lanky frames.
He might not have won the grand prize back in 2003 but he was offered a recording contract with Warner Music Philippines and shortly after he released his self-titled debut album which spawned hits such as “The Way You Look At Me,” “Color Everywhere,” and his rendition of Breathe’s 1987 hit, “Hands to Heaven.”
Ms. Ledesma, who has been in the industry for close to four decades, made a name for herself with hits such as “Dito Ba?,” “’Til I Met You,” and “One More Try,” to name a few. Her soulful voice led her to perform with international artists including Mr. Legrand in 2002 during a Valentine’s Day concert.
“I’ve learned so much from her,” Mr. Bautista said of Ms. Ledesma in a press release. “As an artist, I admire the brilliance she injects in our craft. She knows how every little details will flow and has total control of her shows. It’s an amazing opportunity to see how she does it and be able to sing with her on the same stage again.”
Though they declined to reveal which songs they would be singing, Mr. Bautista said he might sing Mr. Groban’s “You’re Still You” or Mr. Legrand’s “What are You Doing the Rest of Your Life” while Ms. Ledesma said she would love to sing Ms. Streisand’s “Somewhere.”
“Our — and of course the fans of Streisand, Legrand, and Groban — can definitely expect a deeper sense of connection in the songs that we will sing in the concert. It’ll be the music we have fallen in love with, only this time more heartfelt.” Ms. Ledesma said in the release.
The Oct. 20 concert will be held at Solaire’s The Tent, a temporary venue meant to “accommodate Solaire’s ever-expanding entertainment fare,” said Audie Gemora, Solaire’s director for entertainment, in the release.
The Tent, which will only be up until the end of the year, will be replaced by a new venue in 2019. While Mr. Gemora kept mum about the specific details he said that the new development will be bigger than the Tent’s 1,800-person capacity.
Tickets to Kuh Ledesma Christian Bautista Sing Streisand Groban Legrand are available at TicketWorld (www.ticketworld.com.ph, 891-9999). Ticket prices range from P2,000 to P4,500. — ZBC

Labor dep’t may require ‘women’s desk’ at work

THE Department of Labor and Employment (DoLE) said it is in the considering establishing a “women’s desk” in its regional offices within the year and may ask workplaces to set up desks of their own to deal with women’s work-related concerns.
In an interview with BusinessWorld on Wednesday, Bureau of Workers with Special Concerns (BWSC) Director Ma. Karina Perida-Trayvilla said “The concept is still being written at the moment.”
She added that the idea of requiring establishments to put up a women’s desk came from recently-dimissed Undersecretary Joel B. Maglunsod. “It’s the brainchild of Usec JoMag,” she added.
The women’s desk will be in charge with dealing with female workers and their working conditions and labor relations in the company.
Ms. Trayvilla said the women’s desk in workplaces and at the DoLE regional offices is different from the women and children’s desk that is mandatory for barangays to handle domestic violence cases. There currently are no venues to air women’s workplace concerns.
DoLE will pilot-test the women’s desk in its regional offices before rolling out the concept for workplaces.
She said DoLE’s timetable for launch in all workplaces is by next year, with a focus on large firms with the resources to comply.
“It will also entail logistics” and additional personnel, she said.
Micro, small, and medium enterprises may be made to direct any issues initially to the women’s desks being set up at DoLE regional offices, Ms. Trayvilla said.
According to data provided by the BWSC, major industries with a female majority as of January 2018 include: fishing and aquaculture, manufacturing, wholesale and retail, accommodation and food services, public administration, and education, among others. — Gillian M. Cortez

PHL listed firms lagging behind in sustainability reporting

Makati skyline
BW FILE PHOTO

PUBLICLY LISTED companies fell short when it came to publishing sustainability reports as part of their good corporate governance initiatives, amid increasing awareness on the importance of sustainability to move businesses forward.
This is according to the 2nd Corporate Governance Study by the Good Governance Advocates & Practitioners of the Philippines in partnership with PwC Philippines (GGAPP-PwC). The group cited non-financial and sustainability reporting as among the areas for development PLCs can improve on, alongside board committees and risks and controls.
The group found that while 89% of companies recognized and placed importance on sustainability — higher than the first study’s 76% — only 22% were able to publish sustainability reports in accordance with globally recognized standards, such as the guidelines set by the Organisation for Economic Co-operation and Development (OECD).
“The Philippines is actually very much behind in sustainability reporting, not only globally but also our ASEAN neighbors,” Securities and Exchange Commission Corporate Governance and Finance Department Assistant Director Rosario Carmela B. Gonzales-Austria said in during the 6th Annual GGAP forum in Pasay City yesterday in reaction to the study.
Ms. Gonzales-Austria noted that Malaysia, Thailand, and Indonesia have been releasing sustainability reports from the early to mid-2000s, with all three companies, along with Singapore, already equipped with their own sustainability reporting guidelines.
The GGAPP-PwC study evaluated 246 listed firm in the period ending Aug. 31, based on integrated annual corporate governance reports submitted to the Philippine Stock Exchange and Securities and Exchange Commission (SEC).
PwC Chairman and Senior Partner Alexander B. Cabrera explained that the gap between awareness and actual reporting is due to the lack of commitment and sturdy guidelines in the country.
“You need resources to prepare the sustainability report. You need teams of two or three with certain expertise. So first is the commitment, second is framework. If the study is your framework, then you can reduce that to an informed report,” Mr. Cabrera said in an interview on the sidelines of the forum.
Speaking in a panel discussion during the forum, Ayala Corp. (AC) Group Risk Management & Sustainability Head Ma. Victoria Tan highlighted that firms should monitor their non-financial performance such as sustainability since it also contributes to the overall growth.
“Because when the financial performance that you have is growing, it’s because of the non-financial performance that actually contributes to that. The natural resources that we use, those are not unlimited. We have to put that into the equation,” Ms. Tan said during the panel.
University of Asia & the Pacific Professor and Executive Director for the Center of Corporate Social Responsibility Colin Legarde Hubo identified the chief financial officer (CFOs) as the top executive who should most pay attention to sustainability issues, taking cues from AC which was the first listed conglomerate to come up with a sustainability report.
To note, AC CFO Jose Teodoro K. Limcaoco also acts as its chief risk officer and chief sustainability officer.
“CFOs nowadays are becoming the darlings of sustainability. Now CFOs are making decisions on the basis of intangibles,” Mr. Hubo said, noting that only 17% of CFOs based their investment decisions on intangible factors in the 1970s compared to 2015’s 84%.
“Globally, there is a trend to align executive compensation with sustainability performance and bonuses,” Mr. Hubo added.
One Meralco Foundation Chief CSR Officer Jeffrey O. Tarayao noted the same, emphasizing the importance of placing leaders in charge of sustainability programs.
“We look at two critical points, the first one is that who in the organization is responsible for sustainability both at the strategic and operational areas. And second, is sustainability part of performance evaluation, and implementing sustainability performance into the management incentive system?,” Mr. Tarayao explained.
Right now, AC’s Ms. Tan said the SEC has been enforcing the importance of starting sustainability reporting among companies.
“The first thing really is to start reporting. You can only manage what you can measure, and you can only measure what you know. And we can only know if you start collecting… we are far in terms of reporting, but I think it is already in the business model,” Ms. Tan said. — Arra B. Francia

Foreign portfolio investments yield net outflow

BSP
HOT MONEY flew out of the country in September amid local and foreign issues.

By Melissa Luz T. Lopez, Senior Reporter
MORE FOREIGN CAPITAL exited the Philippines in September, marked by sustained net foreign selling of local stocks amid concerns on surging consumer prices and a weaker peso, the central bank said yesterday.
Foreign portfolio investments posted a $440.3-million net outflow last month, reversing the $225.85 million net inflow in August as well as the $112.63 million in fresh capital which entered the country in September 2017.
These flighty investments are often called “hot money,” as such funds enter and leave the country with ease.
September’s tally is the biggest net withdrawal since the $516.12 million outflow recorded in June. Investor appetite turned sour last month amid concerns on local and global issues.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said market players are cautious about the trend weakness of the peso, which has depreciated by over eight percent year-to-date against the dollar, as well as the “continued uptick” in inflation likely aggravated by the effects of typhoon Ompong (international name: Mangkhut).
Prices of widely-used goods rose by 6.7% last month, a fresh nine-year high amid surging costs of food; transport; and housing, utilities and fuel, the Philippine Statistics Authority said. This brought the nine-month inflation tally to five percent, well above the BSP’s 2-4% target range.
The BSP raised interest rates by another 50 basis points during their Sept. 27 policy meeting to rein in inflation expectations and temper excessive exchange rate swings.
Worsening trade tensions between the United States and China also kept foreign investors wary about placing their money in the Philippines, the central bank said.
Foreign firms invested $743.31 million in the Philippines in September, a third lower than the $1.121 billion infused the previous month.
These investments were cancelled out by $1.184 billion in outbound capital, also a third higher than the $895.31 million withdrawals in August and is the biggest seen in three months.
Bulk of the hot money placements were invested in listed firms at the Philippine Stock Exchange, particularly into holding firms; banks; property companies; food, beverage and tobacco firms; and telecommunication companies. This led to a $351 million net outflow, which came at a time of sustained net foreign selling at the local bourse.
Around 14.3% of the investments went into peso debt papers, which also resulted to an $89-million outflow.
By source, the biggest sources of capital are investors in the United Kingdom, the US, Singapore, Switzerland and Malaysia.
Despite September’s slump, hot money netted a $161.71 million net inflow for the first nine months. The BSP expects foreign portfolio investments to net a $900-million outflow by yearend, which would be wider than the $205.03 billion in withdrawn capital last year.

Drake, Ed Sheeran most streamed Spotify artists of last decade


THIS WEEK marks the 10th anniversary of the public debut of Spotify, and the streaming service has released a few all-time “most-streamed” lists. Think of them as global playlists for the last decade of your life.
Taking the No. 1 spot on the most-streamed artist rundown is Drake, with Ed Sheeran landing atop the most-streamed song list with “Shape of You.” Rihanna was the first artist to achieve 1 billion streams in 2013 and leads the global list of most-streamed female artists.
Sheeran marks two entries on the most-played track list with “Shape of You” at the top and “Thinking Out Loud” in fifth place. Drake’s “One Dance” holds second place, the Chainsmokers and Halsey’s “Closer” is third, while Post Malone takes fourth place with “rockstar” (featuring 21 Savage). The Chainsmokers also mark two spots on the top 10, thanks to “Don’t Let Me Down” landing at No. 10, while Justin Bieber gets two entries with “Love Yourself” and “Sorry” at No. 8 and No. 9 respectively and is credited in a third along with Luis Fonsi and Daddy Yankee for “Despacito Remix” at No. 7.
Spotify felt the need to break out a separate list of most-streamed female artists, possibly because no female artist had a song make the most-streamed top 10. Rihanna sits atop the list, followed by Arianna Grande, Sia, Beyoncé, and Nicki Minaj. Their initial reluctance to join the service in its infancy may explain why Adele and Taylor Swift follow at No. 6 and No. 7, respectively.
Sweden-based company Spotify Technology SA launched to the public in October 2008 with Coldplay’s “Viva La Vida” becoming the most-streamed track in the debut month. A decade later, the service, founded by current Chief Executive Officer Daniel Ek and Martin Lorentzon, has more than 180 million monthly active listeners across 65 countries, features more than 40 million tracks, more than 2,000 genres, and more than 3 billion playlists. It has clocked 16,858,080 years of time streamed.
In April, it went public on the New York Stock Exchange. Shares opening at $165.90, which gave the company a market value of $29.5 billion. Shares closed at $149.48 on Wednesday.
Streaming music services have increased in recent years both in volume of music and competition, with customers now having multiple outlets vying for their business. Apple Inc., Tidal, Amazon.com Inc., and Android have all launched their own services, with YouTube Music, a subsidiary of Alphabet Inc.’s Google Inc., debuting in June.
Spotify’s biggest competitor, apart from illegal downloads, is currently Apple Music, which has more than 40 million subscribers and more than 50 million users. Globally, 38% of online listeners continue to consume music illegally through copyright infringement practices such as stream ripping, according to a 2018 report by the International Federation of the Phonographic Industry (IFPI).
Here, though, are the hits.
MOST-STREAMED SONG EACH YEAR SINCE SPOTIFY LAUNCH
2008: The Killers — “Human”
2009: The Black Eyed Peas — “I Gotta Feeling”
2010: Eminem, Rihanna — “Love The Way You Lie”
2011: Don Omar, Lucenzo — “Danza Kuduro”
2012: Gotye, Kimbra — “Somebody That I Used To Know”
2013: Macklemore & Ryan Lewis — “Can’t Hold Us” (featuring Ray Dalton)
2014: Pharrell Williams — “Happy” (from Despicable Me 2)
2015: Major Lazer, Mo, DJ Snake — “Lean On”
2016: Drake — “One Dance”
2017: Ed Sheeran — “Shape of You”
TOP-STREAMED ARTISTS OF ALL TIME
1. Drake
2. Ed Sheeran
3. Eminem
4. The Weeknd
5. Rihanna
6. Kanye West
7. Coldplay
8. Justin Bieber
9. Calvin Harris
10. Ariana Grande
MOST-STREAMED SONGS OF ALL TIME
1. Ed Sheeran — “Shape Of You”
2. Drake — “One Dance”
3. The Chainsmokers, Halsey — “Closer”
4. Post Malone — “rockstar” (featuring 21 Savage)
5. Ed Sheeran — “Thinking Out Loud”
6. Major Lazer, Mo, DJ Snake — “Lean On”
7. Luis Fonsi, Daddy Yankee, Justin Bieber — “Despacito Remix”
8. Justin Bieber — “Love Yourself”
9. Justin Bieber — “Sorry”
10. The Chainsmokers — “Don’t Let Me Down”
FIRST 10 ARTISTS TO REACH 1 BILLION STREAMS ON SPOTIFY
1. Rihanna (2013)
2. David Guetta (2013)
3. Eminem (2013)
4. Kanye West (2014)
5. Avicii (2014)
6. Coldplay (2014)
7. Jay Z (2014)
8. Katy Perry (2014)
9. Drake (2014)
10. Pitbull (2014)
MOST-STREAMED ALBUMS GLOBALLY
1. Ed Sheeran — ÷
2. Justin Bieber — Purpose
3. Drake — Views
4. Ed Sheeran — x
5. Post Malone — beerbongs & bentleys
6. The Weeknd — Starboy
7. Drake — Scorpion
8. The Weeknd — Beauty Behind The Madness
9. Post Malone — Stoney
10. Kendrick Lamar — DAMN.
MOST-STREAMED FEMALE ARTISTS GLOBALLY
1. Rihanna
2. Ariana Grande
3. Sia
4. Beyoncé
5. Nicki Minaj
6. Adele
7. Taylor Swift
8. Selena Gomez
9. Katy Perry
10. Shakira
— Bloomberg

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