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RCBC offers basic accounts

RIZAL COMMERCIAL Banking Corp. (RCBC) has launched basic deposit accounts (BDA), offering a cheaper and simpler way to access financial services in line with the government’s inclusion push.
In a statement on Wednesday, the Yuchengco-led RCBC said it is now offering basic deposit accounts, which require less documents.
To open a basic deposit account, RCBC requires its clients to bring a valid ID or latest barangay certificate, as well as a P100 initial deposit.
The account does not have a minimum daily balance requirement and comes with access to RCBC’s online banking facility and a Mastercard-enabled debit card.
“With the BDA, RCBC aims to encourage the value and discipline of saving, as well as give them access to the convenience and security that bank accounts offer,” RCBC’s Senior Vice President for Deposit Products & Promotions Head Emmanuel Mari K. Valdes was quoted as saying in the statement.
RCBC said the new product is in support of the central bank’s financial inclusion campaign which encourages lenders to offer accessible and affordable products to serve different market segments, particularly the unbanked and unserved sectors.
Earlier this year, the central bank released Circular No. 992, which provided a framework for BDAs, encouraging more Filipinos to open up accounts in formal institutions as it waivers maintaining balances and dormancy charges, and simplifies the know-your-customer requirements.
RCBC posted a P2.2-billion net income in the first half of the year, 6.4% lower than the P2.35 billion tallied a year ago.
Its shares gained P1.40 or 5.26% to close at P28 apiece on Wednesday. — KANV

CLC-Trans-Asia deal under review

THE Philippine Competition Commission (PCC) on Wednesday started a review of Chelsea Logistics Holdings Corp.’s (CLC) acquisition of Trans-Asia Shipping Lines, Inc.
The Phase 1 review comes after the anti-trust body received the companies’ notification of the deal last Sept. 21.
To recall, the transaction was earlier voided due to CLC and Trans-Asia Shipping’s failure to notify the PCC, even as the size of the transaction fell under the compulsory notification threshold of P1 billion.
The voided deal led to the PCC approving CLC’s purchase of shares in KGLI-NM Holdings, Inc., which owns 2Go Group, Inc. The PCC had said the Trans-Asia transaction initially raised competition concerns, as both 2Go and Trans-Asia were owned by Udenna Corp.
A hearing was held at the PCC on Sept. 17, as the parties sought to have both decisions reconsidered.
The PCC said Udenna Chairman and CEO Dennis A. Uy and company representatives committed to complying with the notification requirements, as well as make “voluntary commitments” to address the competition concerns.
“These include the commitment to be bound by a price monitoring scheme and provide necessary information to implement the same,” the PCC said.
Because of this, the PCC set the applicable administrative fine at 1% of the transaction value amounting to P11.4 million. This lower than the P22.8 million penalty set by the PCC.
“Compliance is the cornerstone of fostering a culture of competition. The competition law is fair as it rewards faithful observance of the rules while it penalizes violations,” PCC Chairman Arsenio M. Balisacan was quoted as saying in a statement.
Under PCC rules, the Phase 1 review is conducted within 30 days from notification and payment of filing fees. The review will determine whether or not the deal will raise competition concerns. If competition concerns arise, the PCC will proceed to a Phase 2 review.
Based on its previous review of the Chelsea/KGLI-NM transaction, PCC found that Chelsea’s control of both 2Go and Trans-Asia would lead to a substantial lessening of competition affecting Roll-On/Roll-Off passenger shipping services in six routes, namely Cebu-Cagayan De Oro; Cagayan De Oro-Cebu; Cebu-Ozamis; Ozamis-Cebu; Cebu-Iligan and; Iligan-Cebu legs.
It also found substantial lessening of competition in the cargo shipping services in the same areas plus the Cebu-Zamboanga leg. — JCL

SEC warns public vs investing in Bioglow laundry shops

THE Securities and Exchange Commission (SEC) has advised the public against investing in Bioglow Laundry Shop (Bioglow), noting that it is not registered with the commission nor authorized to solicit investments.
The commission found that Bioglow has been inviting people to invest in the laundry shop’s branches at P2,500 per one percent share in the main branch, and P2,000 per one percent share in a satellite branch. An investor could own an entire branch for P250,000 and P200,000 for main and satellite branches, respectively.
In exchange for the investment, Bioglow will manage the business, including the procurement of permits, employment and training of staff, as well as actual business operations. The investor can then earn income proportionate to the revenues generated by the branch.
Bioglow will deduct 25% from the branch’s income as processing fee and for other expenses incurred during the period, with the remaining income to be divided among the investors.
The company also guaranteed investors that the branch will generate P10,000 in net sales monthly, as per its Monthly Sales Protection System.
The SEC said that Bioglow is not registered as a corporation or partnership with the commission, and is likewise not authorized to offer investments to people since it does not have a secondary license to sell securities or investment products.
“In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with Bioglow Laundry Shop or its representatives,” the commission said.
The SEC added that those who act as salesmen, brokers, dealers, or agents of Bioglow who sell or convince people to invest in the group may be prosecuted as per the Securities Regulation Code (SRC). Penalties could reach as high as P5 million or up to 21 years of imprisonment, in accordance with Section 73 of the SRC.
The commission has continuously been issuing advisories against several investment scams to protect investors. It previously warned the public against entities like KAPA Community Ministry International, Inc., Bibli Online Store, and Nutriwealth Multi-Purpose Cooperative, among others. — Arra B. Francia

JBL launches Bluetooth speakers, headphones with built-in assistant

MORE VOICE-ASSISTED products are seen to be available in the Philippines, as American audio equipment maker JBL looks to intensify its presence in the country.
Samsung Electronics subsidiary Harman International Industries, JBL’s parent company, last week launched its first line of Bluetooth speakers and headphones with a built-in Google Assistant in the Asia-Pacific in the Philippines.
“In the APAC region, especially in the Philippines, consumers are still buying Bluetooth speakers… [It’s] easy to use and it’s [getting] more affordable, [with] mid-range products,” Seng Hock Chang, Brand Activation Director & Sales Director for Car Audio at Harman International (APAC), told BusinessWorld at the launch last week.
“Voice platform will slowly but surely grow so we will monitor this very closely. We are seeing the growth happening very fast, [so] we [will] give a wider range of products at different price points,” he added.
Launched last week were the Google Voice-assisted JBL Link series and JBL Everest GA series.
The JBL Link line has four products with a built-in Google Assistant. Two items in the line, the Link 10 and Link 20, are smaller, portable and waterproof, with five and 10 hours of battery life, respectively. Meanwhile, the Link 500 and Link 300 are larger and meant for home use. Multiple speakers can be connected via the Google Home app, as with other Chromecast built-in products.
On the other hand, the JBL Everest headphone line, on the other hand, comes in three kinds: the in-ear Everest Elite 110GA, on-ear Everest 310GA, and on-ear Everest 710GA with playtime of eight, 10 and 25 hours, respectively. These wireless Bluetooth headphones can access Google Assistant with a button and allow users to control music via voice commands.
JBL is looking to launch more voice-assisted gadgets here before Christmas.
As soon as Google gives its go signal, JBL will also release JBL Link View, a speaker with built-in 10-inch screen, and JBL Link Bar, a voice-activated sound bar which is doubles as a speaker and a device to control the television it is connected to.
While JBL is not expecting to compete with Amazon and Google in the voice-assisted platform market, it is expecting its line of voice-assisted speakers to rank at third.
“As soon as the voice platform is available, we can launch the product. So if tomorrow, Amazon sees that Alexa is ready in the Philippines, we will be able to launch Alexa,” Mr. Seng said, hinting that they are also open to partner with Amazon to give its consumers more choices.
Mr. Seng said the key is looking for a larger consumer market with mastery in the English language.
“Philippine customers are very discerning. I think your command of English is very strong, [and] this platform is currently only in English, [because] Tagalog is not ready,” he added.
With this in mind, Mr. Seng said that “the usage will be very seamless, will be easy for the consumers here to try it out and enjoy the functionalities.” — Anna Gabriela A. Mogato

Fishing for your food at New York’s wild new seafood restaurant

YOUR ODDS of catching a big striped bass for dinner in New York City are not especially high. A pier in Brooklyn, close to the Williamsburg J.Crew, probably offers the best chance. Your next step is to find someone to clean and cook it for you.
Or you can just book a table at Zauo. Starting on Oct. 15, diners will be able to walk into the Chelsea restaurant and dip a line into a giant tank full of frisky striped bass — plus salmon, fluke, trout, and other fish. It’s a farm-to-table thesis served with a rémoulade of Japan-style kitsch. It’s dining theater at the extreme, an outsize gimmick in a town built on them. It’s also quite entertaining.
On a Monday morning, dozens of fish zombied past my salmon-scrap-gobbed hook, like so many Midtown commuters. A three-pound striped bass hurried by on the right, a 14-inch rainbow trout lazily detoured to the left, and a steelhead the size of my arm lumbered underneath. None of them made eye contact — New Yorkers through and through.
After two minutes, the mark came along. A fresh-faced trout paused for a beat; wondered, What’s this?; and voilà: Brunch was served.
There’s a giddy joy in catching a fish, and it doesn’t abate much based on the setting. The incongruity of feeling the fish’s electric dance on a line at Zauo, two steps from a bar stocked with high-end sake, is part of the fun.
And it’s supposed to be fun.
This is not a hushed temple of sushi where guests line up like congregants. The staff goes out of its way to keep the atmosphere bright (in case one ponders too deeply what’s about to befall the entrees lazily finning by). When a fish is hooked, a concerted cheer rings out from the three or four “fish attendants” directing traffic around the tank. As it thrashes into the net, someone bangs a big bass drum. Just as quickly, the critter is whisked to the back of the house, where the kitchen staff makes sure it will never swim again.
Somehow, it’s not as ridiculous as it sounds. Fish tanks and giant drums aside, the space is subdued. Sure, the entire second floor is designed as a “boat,” with the keel running the length of the bar downstairs, but it comes off as spartan. Blond wood gives way to brick and the occasional buoy in a sushi-counter vibe.
“It’s all very simply, very systematic,” says spokeswoman Ayako Kaneyoshi. “After all, it is a chain restaurant.”
Indeed, Zauo’s owners run 13 sibling locations in southern Japan that are especially popular with international tourists. Restaurants in that area — and in Chinatowns around the world — have tanks of seafood where you can see your dinner swimming around. Zauo is arguably the first to let customers do the catching.
The Manhattan location, the family’s first outside Japan, required an entirely new piscine supply chain. Aside from the Maine lobsters, all the inventory is trucked in from farms: salmon from New York and striped bass from Northern Carolina. My rainbow trout grew up in Pennsylvania. The trout, salmon, and striped bass are kept together in two different tanks. Upstairs, 50 flounder doze in a separate tank like a smattering of sleepy-eyed welcome mats, with fluke, lobster, rockfish, and abalone as friends. The flounder are the most exotic fare, having flown in from Japan.
There are 134 seats, and diners will fish in waves of 15 to 20 at a time. Each person pays, in total, for whatever grabs the hook, with prices ranging from $45 for a trout or bass to $110 for one of the massive salmon (which, considering the size, may be one of the city’s best seafood deals). Those who elect to have a fish caught for them will pay slightly more ($55 for the trout, $125 for the salmon) — but to get exactly what you want, there are nets available. Once the fish is safely in the kitchen, diners choose from a few simple preparations: sashimi, grilled, fried in tempura, or simmered in soy sauce and mirin. All arrive whole, with the head and bones, unless you ask otherwise. Fluke or flounder bone chips are extra.
For those who don’t dabble in indoor fishing, there’s a sashimi-heavy a la carte menu (for your tuna and scallop fix), as well as nonseafood options including deep-fried tofu, tempura chicken, and braised pork belly. Some of the offerings are made from the by-products of the day’s catch; the miso soup, for instance, incorporates a fish-bone broth. Dessert is a range of gelato: wasabi, yuzu, and matcha.
The mind reels at what could go wrong. The slim walkways around each tank have the makings of a horrendous Instagram jam. A solo diner is in for some expensive gluttony should she unwittingly snag a salmon — you catch it, you buy it. And the setup seems prime for high jinks in bonus season or when a bro bachelor party books the big table at the prow of the boat upstairs. The signs that forbid bathing and synchronized swimming are easy to overlook.
Meanwhile, the operation still has some kinks to work out. The opening was delayed for six months. Last week the staff, some of whom came from Japan, debated whether to separate the stock by species or size. Others were talking with the farmers, trying to discern how the fish behave at different times of day and how obliging each species is when presented a morsel of food on a tiny hook.
There’s a distant concern that an eager diner may, in fact, fail to hook a fish — get skunked, as they say on the Brooklyn piers. Although that, of course, is fishing. Whatever you do, don’t overthink it. And don’t catch and release. — Kyle Stock, Bloomberg

UnionBank’s IOC to boost lender

UNIONBANK’S operations center will boost its monitoring. — PHILSTAR

UNIONBANK of the Philippines said its integrated operations center (IOC) launched last year will help supervise the overall operations of the bank, which in turn will translate to maximized revenues and a better customer experience.
In a media tour on Wednesday, UnionBank Head of IT Risk Management and Resiliency Charmaine R.A. Valmonte said the IOC stands as the “fabric” of UnionBank’s digital transformation initiative.
“It’s part of the fabric of our transformation. We need to keep an eye on everything—the system and processes as well as how our clients feel,” Ms. Valmonte told reporters yesterday.
Using the latest technologies such as artificial intelligence and deep learning, the IOC operates 24/7 and consists of three segments that address issues on security, business operations as well as customer activation and engagement.
“We monitor all the banking processes. We have different banking channels, such as the branches, [automated teller machines] and the digital platforms,” Ms. Valmonte said.
The IOC also develops security measures to counter constantly evolving cybersecurity threats.
Launched in June last year, the IOC is the first of its kind in the country, according to UnionBank, as other operations centers do not have a holistic view of operations.
The bank said the operations center can translate to higher revenues as well as better experience for its clients.
With the launch of the IOC, UnionBank saw its severity incidents dropped by 57% to three in 2017 from seven a year ago. The lender also saw last year increased uptime for branches and offsite ATMs to 99.23% and 96.38%, respectively, from 2016.
“The more we can see, the more we can analyze. If we can do that early and you have alerts, you can address [the issue] quickly before it becomes a bigger problem,” Ms. Valmonte said.
UnionBank has embarked on a digital transformation by modernizing banking processes and workflow, employing “disruptive” technologies such as blockchain and artificial intelligence to enhance its operation.
UnionBank booked a P4.7-billion net profit in the first half of the year, up 8% from a year earlier.
Shares in the bank closed at P65.85 apiece on Wednesday, down five centavos or 0.08%. — Karl Angelo N. Vidal

DJI introduces Mavic 2 camera drones

DRONE MAKER DJI has introduced two new devices under its Mavic 2 series, with one featuring a Hasselblad camera for improved image quality.
The Mavic 2 series features DJI’s new flagship consumer drone cameras targeted for professionals, aerial photographers and other content creators: the Mavic 2 Pro and Mavic 2 Zoom. Both cameras capture 4K video at a maximum bitrate of 100 megabits per second, and have a new Hyperlapse feature, which allows users to create timelapses via different modes. They also have upgraded flight and tracking systems, allowing for safer flight, and flight time of up to 31 minutes.
According to DJI, the Mavic 2 Pro is the world’s first drone with an integrated Hasselblad camera. It has a 1-inch CMOS sensor with a 10-bit Dlog-M color profile. It can also take 20-megapixel aerial shots with using the Hasselblad Natural Color Solution technology and has an adjustable aperture from f/2.8-f/11. It also has HDR support.
Meanwhile, the Mavic 2 Zoom, DJI’s first foldable consumer drone with zoom, houses a 1/2.3-inch CMOS sensor. The camera combines 2x optical zoom (24-48mm) with 2x digital zoom to simulate a 96mm telephoto lens. It also allows users to shoot 12 MP photos and use the new Super Resolution feature for landscape photography, which uses optical zoom to automatically capture and stitch nine photos together for a 48 MP image. The Mavic 2 Zoom also has a new Dolly Zoom QuickShot mode.
Including the drone, battery, remote controller, charger, and four pairs of propellers, the Mavic 2 Pro retails at P98,800 while the Mavic 2 Zoom is priced at P76,300.
A Fly More Kit, which includes two additional batteries, a multi-battery charging hub, a car charger, a battery to power bank adapter, two pairs of propellers and a carrying bag, is priced at P23,100.

CLI 9-month reservation sales soar to P6B

RESERVATION sales of Cebu Landmasters, Inc. (CLI) surged in the first nine months of 2018, driven by interest in both its economic housing and high-end projects.
In a statement issued Wednesday, the Cebu-based property developer said reservation sales jumped 69% to P6.17 billion in the nine months ending September. This represents 88% of the company’s P7-billion goal for full year 2018.
“We expect to see continued strong sales performance in the coming years as demand for housing from these segments of the market remains firm,” CLI President and Chief Executive Officer Jose R. Soberano III said in a statement.
The listed firm attributed the sales to its economic housing brand Casa Mira, which generated P1.42 billion from the sale of 746 units. The Casa Mira brand offers townhouses with two-bedroom covering 36-43 square meters (sq.m.) to three-bedroom sized 58 sq.m.
Its high-end mixed use project in Cebu City called the Baseline Center contributed P1.18 billion after selling 341 units. Its condominium complex in Bacolod City called MesaVirre Garden Residences meanwhile generated P929.93 million after selling 427 units.
Projects located in Cebu, Dumaguete, Cagayan de Oro, and Davao also added to the company’s strong performance during the nine-month period.
The company sold a total of around 2,500 units priced at an average of P2.5 million during the period.
With this, CLI said it will be able to deliver a double-digit financial growth for the year. The company is targeting to book P1.7 billion in profits for this year, higher than its 2017 net income of P1.29 billion. Revenues are also expected to hit P5.3 billion this year.
The company is banking on additional revenues from upcoming projects in Bohol and Iloilo to support its growth target.
“The strategies we have adopted in the housing market allows us to meet full-year targets,” Mr. Soberano said.
CLI also expects more Filipinos to buy housing units moving forward, citing a study made by the Bangko Sentral ng Pilipinas for the third quarter saying that 9.2% of Filipinos “intend to buy a house in the next 12 months.”
The company recently announced that it has fully used up the P2.15 billion raised from its initial public offering last year, which allowed it to further beef up its land bank in the Visayas and Mindanao.
With 420,573 sq.m. of land under its network, CLI now has 52 developments in various stages of construction across Cebu, Mandaue, Cagayan de Oro, Davao, Bacolod, Dumaguete, Iloilo, and Bohol.
Shares in CLI went down 1.14% or five centavos to close at P4.35 each at the stock exchange on Wednesday. — Arra B. Francia

Here are the world’s Top 50 Bars — and the best is in London

By Richard Vines, Bloomberg
FANCY A few cocktails at the world’s best bar? Better be quick: It’s preparing to close.
Dandelyan, in the Mondrian, London, was named the world’s finest in the World’s 50 Best Bars awards last Thursday. The victory came just two days after the bar’s founder Ryan Chetiyawardana, AKA Mr. Lyan, announced on Instagram that he planned to celebrate Dandelyan’s fourth birthday by replacing it with something new.
“We are so excited to have it at this point, to have this pinnacle, and then to look at what we can do next,” he said on accepting the award at an event attended by bartenders, drinks writers and enthusiasts in the Roundhouse, London. “I made an announcement to you on Monday that we’re going to kill Dandelyan, we’re going to close it. And it feels so wonderful to do it at this point and move on.” He didn’t give a date.
Dandelyan first entered the list at No.50 in 2015, before jumping to No.3 in 2016 and placing second last year. In grabbing the top spot, it toppled the American Bar, at the Savoy hotel in London. Manhattan, Singapore, rose four places to third; The NoMad, New York, slipped one place to fourth. And the Connaught Bar, London, slipped to fifth from fourth.
London has a total of 10 bars on the 2018 list, including newcomers Scout (28), Three Sheets (29), Swift (46) and Coupette (18). The others are Bar Termini (6), Oriole (17) and Happiness Forgets (35).
The US has 10 bars on the list, with The NoMad crowned Best Bar in North America for the second consecutive year. The others are Dante, New York (9); Attaboy, New York (15); Dead Rabbit, New York (16); Sweet Liberty, Miami (21); Employees Only, New York (26); Tommy’s, San Francisco (40); Blacktail, New York (41); Trick Dog, San Francisco (44); and Lost Lake, Chicago (50).
Chetiyawardana has received many accolades in recent years, including World’s Best Bartender 2015. He’s known for innovative cocktails. His current “Modern Life of Plants” menu “explores industrialization and large scale food systems,” according to the bar’s website. It’s divided into three sections: Mint, Grape and Hops. Dandelyan has received multiple plaudits.
The World’s 50 Best Bars is owned and organized by William Reed Business Media, the group behind the World’s 50 Best Restaurants awards. The rankings are based on the votes of 505 drinks writers, bartenders and cocktail aficionados in 55 countries.
THE WORLD’S 50 BEST BARS 2018
1. Dandelyan — London, UK
2. American Bar — London, UK
3. Manhattan — Singapore
4. The NoMad — New York, US
5. Connaught Bar — London, UK
6. Bar Termini — London, UK
7. The Clumsies — Athens, Greece
8. Atlas — Singapore
9. Dante — New York, US
10. The Old Man — Hong Kong, China
11. Licorería Limantour — Mexico City, Mexico
12. Bar High Five — Tokyo, Japan
13. Native — Singapore
14. Florería Atlántico — Buenos Aires, Argentina
15. Attaboy — New York, US
16. The Dead Rabbit — New York, US
17. Oriole — London, UK
18. Coupette — London, UK
19. Himkok — Oslo, Norway
20. Speak Low — Shanghai, China
21. Sweet Liberty — Miami, US
22. Baba Au Rum — Athens, Greece
23. Operation Dagger — Singapore
24. Le Syndicat — Paris, France
25. Lost & Found — Nicosia, Cyprus
26. Employees Only — New York, US
27. Central Station — Beirut, Lebanon
28. Scout — London, UK
29. Three Sheets — London, UK
30. Black Pearl — Melbourne, Australia
31. Tales and Spirits — Amsterdam, Netherlands
32. Linje Tio — Stockholm, Sweden
33. Little Red Door — Paris, France
34. 28 HongKong Street — Singapore
35. Happiness Forgets — London, UK
36. La Factoría — Old San Juan, Puerto Rico
37. Paradiso — Barcelona, Spain
38. Indulge Experimental Bistro — Taipei, Taiwan
39. El Copitas — St. Petersburg, Russia
40. Tommy’s — San Francisco, US
41. BlackTail — New York, US
42. Candelaria — Paris, France
43. Schumann’s — Munich, Germany
44. Trick Dog — San Francisco, US
45. Fifty Mils — Mexico City, Mexico
46. Swift — London, UK
47. Salmon Guru — Madrid, Spain
48. Buck and Breck — Berlin, Germany
49. Bar Benfiddich — Tokyo, Japan
50. Lost Lake — Chicago, US

Rediscount loans climb in September

REDISCOUNT LOANS availed by banks surged in September at a time of tighter money supply, which came ahead of another rate hike from the Bangko Sentral ng Pilipinas (BSP).
Banks took out P10.599 billion in loans from the central bank’s peso rediscount window, up from the P9.41 billion worth of short-term credit secured in August and surging from the P133 million borrowings in September 2017.
The BSP’s rediscount window arms banks with extra cash by posting their collectibles from clients as collateral. The banks may use the fresh money supply — expressed in the peso, dollar or yen — to grant more loans for corporate or retail clients as well as service unexpected withdrawals.
The September loans brought the nine-month rediscount tally to P30.623 billion, well above the P603 million handed out during the comparable year-ago period.
In a statement, the central bank said a fourth of the amount was extended for commercial credits, while the bulk went into other forms of credit. Broken down, 28.2% of the sum went into capital asset expenses, 15.8% for permanent working capital, while 30.9% was lent for other services. Production credits took a 0.03% share, while housing received 0.02%.
The bigger availments came ahead of another rate increase worth 50 basis points (bp) during the central bank’s Sept. 27 policy meeting, which was their fresh response to surging inflation and to temper further price expectations. This pushed the benchmark yields to the 4-5% range, while the main policy rate stood at a nine-year high at 4.5%.
Following the fresh tightening move, rediscount rates also climbed to 5.0625% for loans with a maturity of up to 90 days, while those with a 91 to 180-day term came with a 5.125% yield which took effect Oct. 1.
On the other hand, the exporters’ dollar and yen rediscount window stood untouched so far this year.
For October, rates for dollar borrowings logged higher to 4.39838% for one to 90-day loans; 4.46088% for 91- to 180-day loans; and 4.52338% for 181- to 360-day loans, the BSP said yesterday.
Yields imposed on yen-denominated loans went lower to 1.94517% for one to 90-day loans, 2.00767% for 91- to 180-day loans, and 2.07017% for 181- to 360-day loans. These represent the spreads which banks must pay to the BSP for securing the short-term credit lines as lender of last resort. — Melissa Luz T. Lopez

Lebanon wines bring villages back to life

BEIRUT — Lured by Lebanon’s wine making potential and nostalgia for his homeland, Maher Harb left a Paris consultancy job in 2010 and dug vines into the soil of family land unused since the country’s civil war.
Seven years later his Sept winery launched its first commercial vintage and is now looking to export as a number of European countries take an interest.
The 36-year-old is part of an expanding wine industry which is bringing life back to land abandoned during Lebanon’s 1975-90 civil war and waves of economic migration. It is also bringing Lebanese — and their money — back home.
“Giving up a career in Europe… is very hard; it is all because of how much we love this land and how much Lebanon deserves this,” said Harb, speaking in the hills above the coastal town of Batroun.
And as Lebanon wrestles with stagnant economic growth, heavy debts and political inertia, the industry’s success could serve as a model for other sectors looking to export.
Lebanon, where wine making dates back to the ancient Phoenicians, lies further south than most northern hemisphere wine-producing nations. But the mountains that rise up from its hot, humid Mediterranean coast provide the cooler, drier altitudes grapes need.
Since Lebanon’s civil war ended, a handful of wineries has expanded to around 45 commercial enterprises and a number of small-scale producers.
Global interest in Lebanon’s wines is growing, but output is low — a mere 8-9 million bottles annually compared to 5-6 billion bottles from the world’s largest producer Italy — and production costs are high.
So producers are striving to create a distinct, marketable identity for Lebanese wine based on quality, not quantity.
“Lebanese wine is already good quality, but it still lacks uniqueness,” said Harb.
“STORY TO TELL”
Producers are seeking that identity in the diversity of Lebanon’s terrain, creating wines which carry the unique taste of the small patch of soil and air in which the grape is grown.
“If you want to be competitive you have to have a signature and to show some form of your tradition… You cannot impress a guy who had the best wines on the planet with another Chardonnay,” said Eid Azar, a US-trained doctor and co-founder of Vertical 33, which grows grapes across the Bekaa valley and sold its first commercial wine in 2017.
“Each winery should have a story to tell,” he said from his tasting room in a hip Beirut street, next to a wall display of soil samples and grape names.
The wine industry’s success means the agriculture ministry wants it to be a model for improving the olive oil and arak sectors. Arak is a traditional aniseed-flavored liquor.
Producers are also looking to indigenous grapes for a Lebanese identity, moving away from imported, well-known French vines.
“People used to ask me: You in Lebanon have been making wine for more than 4,000 years, why do you use foreign grapes?” said Joe Assaad Touma of family run Chateau St. Thomas in the Bekaa, which is celebrating 20 years of wine-making.
Touma’s family had been making arak from local Obeidy grapes for 130 years and proved through genetic testing it was indeed indigenous.
Chateau St. Thomas made its first all-Obeidy wine in 2012. Both Sept and Vertical 33 also market an all-Obeidy wine.
IMPACT
Although the industry’s size is estimated by Lebanon’s wine production association UVL to be only around $500 million a year, the local impact of new wineries can be transformative in a country with poor regional development and job prospects.
Almost 20 years ago Naji Boutros gave up a finance career in New York and London and returned to his birth village of Bhamdoun to raise his family and grow wine. The village, a former summer tourism hot spot near the capital Beirut, had been decimated in the war which drove him and many others abroad.
“When we returned to Bhamdoun there was nobody here,” said Boutros. “The school used to have 30 students and now it has above 200, the town is full.”
He started with three plots of inherited land. Other expatriates began offering their unused land for planting and the Chateau Belle-Vue winery, restaurant and guesthouse developed, bringing life back to the hills and attracting tourists.
Although Lebanon’s wine industry often uses cheap Syrian laborers for harvesting, the workers picking grapes in the cool September dawn air were all local.
“We are proud… that the sons of Bhamdoun are on their land,” said Boutros. — Reuters

Espenilla gets B+ in central banker report card

Nestor A. Espenilla, Jr.
Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla, Jr.

BANGKO SENTRAL ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. got the third-highest rating for his first year as central bank chief, with the Global Finance magazine touting sustained economic growth while noting the weaker peso and a wider trade gap as setbacks.
Mr. Espenilla received a “B+” grade from the New York-based publication. Global Finance releases an annual report card for central bankers, with the 2018 scores printed in their October edition.
This is the first time the magazine graded Mr. Espenilla after he assumed the post in July 2017, with the publication saying it was “too early to tell” during the previous year’s grading period. Prior to this, Mr. Espenilla was deputy governor for the Supervision and Examination Sector in charge of regulating banks and financial firms.
Global Finance covers 89 central bank governors around the world, with the highest rating of “A” given to the best-performing monetary authorities with “F” marking the lowest. They are judged based on their hand on inflation control, economic growth, currency stability and interest-rate management, as well as their ability to “protect independence” amid political pressure as well as financial supervision.
In grading Mr. Espenilla, Global Finance took stock of the BSP’s two tightening moves in May and June worth 25 basis points (bp) each.
“The BSP said its actions were designed to safeguard macroeconomic stability in an environment of rising commodity prices and ongoing normalization of monetary policy in advanced economies,” the magazine said.
The central bank kicked off a series of rate hikes earlier this year in the face of surging inflation, which has been picking up since the year opened. The BSP’s Monetary Board has raised benchmark rates by a total of 150 bps as of their September meeting in a bid to arrest elevated inflation expectations, even as price drivers are largely “supply-driven” amid surging oil prices; thin stocks of rice, vegetables and meat; plus the impact of the government’s tax reform program.
Inflation has since worsened to a nine-year high of 6.7% in September, with the current tally averaging five percent versus the 2-4% central bank target.
Still, Global Finance saw that growth prospects remain upbeat, but flagged key weaknesses for the Philippine economy.
“The Philippine economy grew at an annual rate of 6.8% in the first quarter of 2018, close to the target growth rate of 7% to 8% for the year,” the report card read. “Employment and wages are rising, but the Philippine peso slumped to a 12-year low as government spending on infrastructure drew in imports, widening the current account deficit.”
First-quarter growth has been revised to 6.6% while second-quarter expansion clocked in slower at six percent, which brought the first-half tally at 6.3%.
The peso has been trading near a 13-year low above P54 versus the dollar, while the current account has widened to a $3.1 billion deficit as of end-June from a $133-million gap during the same period last year.
Mr. Espenilla’s first year in office saw a 200bp reduction in bank reserves, a move meant to reduce the cost of money and seen to help deepen the local debt markets. He has also set sights on increased use of financial technology to bring more cash-based transactions into digital platforms for cheaper and easier access to money.
Mr. Espenilla is currently on a month-long medical leave for treatment. He was diagnosed with early-stage tongue cancer in November 2017.
Eleven central bankers were graded “A” by Global Finance, namely the governors in Australia, Chile, the European Union, Israel, Kuwait, Lebanon, Morocco, Paraguay, Russia and South Korea.
Former BSP Governor Amando M. Tetangco, Jr., who held the post for two terms from 2005 to 2017, received the top “A” grade from Global Finance for eight of his 12-year stint. — Melissa Luz T. Lopez