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NBI nabs illegal Boracay land sellers

The National Bureau of Investigation (NBI) has arrested five individuals suspected of “illegally selling inalienable lands in Boracay island,” according to its press statement.

Suspects Atty. Jacqueline Y. Borres, Gina T. Yap, Lorelei T. Gonzalo, Jason Lacson and Chaulin Yang were charged for syndicated estafa in connection to the sale of Lot No. 598-A in Barangay Balabag, Boracay Island with a total area of 7,988 square meters — a lot which is protected by Proclamation 1064 classifying some parts of Malay, Aklan as inalienable forestland. — Dane Angelo M. Enerio

Trump scores his first revised trade deal, with South Korea

President Donald Trump secured his first revamp of a US trade deal, after reaching an agreement this week with South Korea that would allow American automakers greater access to that country’s markets, senior administration officials said on Tuesday night.

The agreement came as the US has been involved in renegotiating the North American Free Trade Agreement with Canada and Mexico and has imposed tariffs that have roiled financial markets.

Seoul has agreed to double to 50,000 the number of cars each U.S. automaker can sell in the Asian nation without meeting local safety standards, said the officials, who briefed reporters on condition of anonymity. However, it’s not clear how the higher cap will immediately benefit American manufacturers, given that sales by American automakers currently fall well short of the new limit.

Under the revamped deal, the US will extend a 25-percent tariff on pickup-truck imports until 2041. The tariff was set to expire in 2021 under the existing trade agreement, which came into force in 2012.

Meanwhile, South Korea agreed to limit its steel exports to the US to about 2.7 million tons of year, in exchange for relief from the 25-percent tariff Trump announced earlier this month. Many of the details of the revised trade deal and the steel quota were previously disclosed by South Korea.

The deal removes a major economic irritant as the allies prepare for high-stakes meetings on North Korea. Trump and South Korean President Moon Jae-In are planning separate meetings with North Korea’s Kim Jong Un in the coming weeks. Kim made a surprise visit to China this week and met with President Xi Jinping. China’s official news agency said on Thursday that Kim would be willing to give up his nuclear weapons and hold a summit with the US.

South Korea also agreed to eliminate non-tariff barriers such as certain environmental testing requirements and recognize US. standards on auto parts, according to the senior administration officials.

Currency Side Deal

The U.S. Treasury department is negotiating a side agreement on currency issues with the South Korean government, the officials said. The purpose of the side deal will be to secure Seoul’s commitment to avoid competitive devaluations of its currency and provide more transparency, such as when the nation’s central bank intervenes in foreign-exchange markets, the officials said.

Korea did not announce any such agreement when it briefed media on the revised trade deal on Monday. Officials at South Korea’s finance and trade ministries didn’t respond to several calls and text messages asking for comment on the report.

The agreement is Trump’s first revised trade pact since taking office. Trump has slammed existing trade agreements with several countries, regularly singling out the six-year-old trade deal with South Korea, known as Korus.

The steel quota is unlikely to hurt South Korea’s exports since sales to the U.S. account for 11 percent of total overseas shipments of the metal, the South Korean ministry said. The quota is set at 70 percent of the average of steel sales to the U.S. from 2015 through 2017.South Korean Trade Minister Kim Hyun-chong said the country’s tariff exemption was the first granted by Trump on the country level, and officials were still discussing with the U.S. whether it would be permanent or expire after a time.

South Korea’s trade surplus with the U.S. was about $18 billion last year, down from $23 billion in 2016, according to the Korea International Trade Association. Cars accounted for more than 70 percent of the value of the surplus.

South Korea was one of several countries that received an initial exemption from broad U.S. tariffs on steel and aluminum last week. — Bloomberg

GT Capital core net income jumps 29%

GT Capital Holdings, Inc. delivered higher core earnings last year driven by its automotive, banking and infrastructure businesses.

The holding firm of tycoon George S.K. Ty, the country’s sixth richest man, said in a disclosure to the stock exchange on Wednesday, March 28, GT Capital saw a 29% rise in core net income to P15 billion last year from P11.7 billion in 2016.

Consolidated revenues increased 19% to P239.8 billion from P202.1 billion on the back of strong unit sales from Toyota Motor Philippines Corp.] as well as improved performance from associates Metropolitan Bank & Trust Co., AXA Philippines, and Metro Pacific Investments Corp.

“Our full-year 2017 results show encouraging growth momentum, with core net income up by 29 percent. GT Capital’s key sectors continue to be in the sweet spot, in line with our country’s stage of economic development, reaping demographic dividends,” GT Capital President Carmelo Maria Luza Bautista was quoted in a statement as saying. — Krista Angela M. Montealegre

Alliance Select gets SEC green light on equity restructuring

Alliance Select Foods International, Inc. (FOOD) secured the green light from the Securities and Exchange Commission to undergo an equity restructuring that would wipe out the company’s deficit.

In a statement issued Wednesday, March 28, Alliance Select said it will be reducing the par value of its shares to 50 centavos apiece from P1 each. The company will then apply the resulting additional paid-in capital (APIC) to its retained earnings deficit as of May 31, 2017.

“We are very pleased to receive SEC’s approval of the equity restructuring as this will improve the Company’s financial profile and optimize its performance moving forward,” the company said. — Arra B. Francia

Asian stocks fall after US tech slump, yen slips

Equities in Asia declined after a sell-off in technology shares spooked investors assessing threats to earnings growth for the industry that propelled last year’s rally. The yen slipped and 10-year U.S. yields consolidated below 2.8 percent.

Stocks retreated across the region, with Samsung Electronics Co. and Tencent Holdings Ltd. the biggest decliners on the MSCI Asia Pacific Index. Earlier, American tech shares suffered their worst drop since the broad market correction in early February as investors were rattled by news from Nvidia Corp. and mounting concerns surrounding Facebook Inc. The British pound rose following a report on plans to avoid a post-Brexit hard border with Ireland. The yen declined amid signs of an improving geopolitical situation with North Korea.

Concerns over trade tensions, sparked by President Donald Trump’s protectionist moves, have further stoked volatility that flared in early February amid high valuations and tighter liquidity. The Trump administration is mulling a crackdown on Chinese investments in technologies the U.S. considers sensitive, the latest step in his plan to punish China for violations of intellectual-property rights.

The geopolitical front at least has offered some solace, with China confirming Wednesday that North Korean leader Kim Jong Un met with President Xi Jinping on a surprise visit to Beijing — the latest in a series of diplomatic meetings pointing towards a reduction in tensions.

Meantime, Facebook Chief Executive Officer Mark Zuckerberg is expected to testify before the U.S. House Energy and Commerce Committee as lawmakers grow increasingly concerned about privacy protection. Another tech woe has been questions about the near-term prospects for self-driving vehicles in wake of a death in Arizona. Nvidia Corp., the graphics-chip maker, temporarily suspended its self-driving vehicle testing.

Elsewhere, oil extended a drop for a third day after declining on a report that American crude storage surged.

Here’s a list of of the main events coming up this week:

Thailand’s rate decision is due Wednesday. The big four euro-area economies are due to release March CPI readings this week. U.S. personal income and spending data for February are due to be released on Thursday. The Treasury will probably auction about $294 billion of bills and notes this week, its largest slate of supply ever.

And these are the main moves in markets:

Stocks

Japan’s Topix index slid 1.6 percent as of 1:44 p.m. in Tokyo. Australia’s S&P/ASX 200 Index lost 0.7 percent. South Korea’s Kospi index fell 1.5 percent. Hong Kong’s Hang Seng Index lost 1.5 percent. The Shanghai Composite Index was down 1.1 percent. Futures on the S&P 500 Index fluctuated. The NYSE FANG+ index, tracking the FANG block and its megacap brethren, tumbled 5.6 percent in the biggest rout in data going back to September 2014. The MSCI Asia Pacific Index fell 1.3 percent.

Currencies

The Bloomberg Dollar Spot Index fell 0.1 percent. The pound gained 0.2 percent to $1.4188. The euro was at $1.2415, up 0.1 percent. The yen fell 0.2 percent to 105.58 per dollar.

Bonds

The yield on 10-year Treasuries was steady at 2.78 percent after falling about eight basis points on Tuesday. Australia’s 10-year yield dipped about six basis points to 2.59 percent.

Commodities

West Texas Intermediate crude slipped 0.8 percent to $64.72 a barrel. Gold was little changed at $1,344.33 an ounce after dropping 0.6 percent. — Bloomberg

Balladeer Bert Nievera dies at 81

Roberto Jose “Bert” Nievera, known for singing ballads including “Salamat sa Pag-ibig” (1996), passed away at the age of 81 on Tuesday, March 27.

News of his death was announced by his son, singer/actor Martin Nievera, in an Instagram post. Mr. Rivera died of multiple organ failure at the Southern Hills Hospital and Medical Center in Las Vegas, Nevada, according to a report by ABS-CBN.

“You gave me life, you gave me dreams, you gave me a haircut. I will never forget you Dad! I love you!” Martin Nievera said in an Instagram post, which included a photo of him and his father.

Mr. Nievera, called the “Timeless Balladeer,” broke into the industry in the late-50s and gained popularity in the ‘60s for songs like “Misty”, a Johnny Mathis original released in 1959.

File photo of Filipino balladeer Roberto Jose “Bert” Nievera taken in 1991. — BW ARCHIVES

He first gained attention after winning the search for the Johnny Mathis of the Philippines contest of the variety show, Student Canteen which aired from 1958-1990.

This same song, Mr. Nievera said in a 2001 interview with Ricky Lo for The Philippine Star, is what he considers the “song of his life.”

“The line in it that touches me the most is the last one… I’m too misty and too much in love,” he said in the interview. — Zsarlene B. Chua

ABS-CBN targets six million TVplus boxes sold this year

ABS-CBN Corp. looks to sell at least six million TVplus boxes by the end of this year, in a bid to expand coverage among households in the country.

“We hope to hit at least six million. Technically it covers probably already the bulk or a big of Metro Manila. So that solves a lot of signal issues for ABS-CBN and for households that are probably not watching ABS-CBN because of bad signal,” ABS-CBN Chief Financial Officer Aldrin M. Cerrado told reporters last week.

The Lopez-led company launched TVplus digital box product as part of its Digital Terrestrial Television (DTT) business back in 2015. The product gives customers access to free-to-air channels such as ABS-CBN and ABS-CBN Sports+Action, as well as premium channels including CineMo!, YeY!, Knowledge Channel, and DZMM Teleradyo.

“With DTT boxes in their homes, then it should help grow the business,” Mr. Cerrado added. — Arra B. Francia

Justice department issues subpoena against suspected drug lords

The Department of Justice (DoJ) on Thursday, March 22, issued subpoenas against alleged drug lord Peter Go Lim, confessed drug distributor Rolan “Kerwin” Espinosa, convicted drug lord Peter Co, and 20 others ordering the respondents to present themselves to the agency on Thursday, April 12.

They faced charges filed by the police’s Criminal Investigation and Detection Group (CIDG) with violation of Section 26(b) in relation to Section 5 of Republic Act 9165 or the Comprehensive Dangerous Drugs Act of 2002.

The order — disclosed to media on Wednesday, March 28, was issued following “the remand of this case to (a) new panel of prosecutors… to allow the complainant and respondents to submit additional pieces of evidence in support of their respective positions,” according to the subpoena.

This is the latest development in the case against the respondents whose drug charges were dismissed on Dec. 20, last year after a panel of prosecutors found inconsistencies and contradictions in co-accused and sole witness Marcelo L. Adorco’s statements.

Justice Secretary Vitaliano N. Aguirre II, in response, issued an order to review the case and “remanded” it to a new panel of prosecutors “for (the) purpose of conducting the continuation of the preliminary investigation/clarification hearing and to allow the complainant and respondents to submit additional pieces of evidence in support of their respective positions,” according to the order. — Dane Angelo M. Enerio

Growth in money supply quickens in February

Growth in money supply picked up in February as bank lending grew by nearly a fifth, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday, March 28.

More money circulated in the Philippine economy as liquidity grew by 13.5% last month, faster than the 12.8% pace seen in January. . — Melissa Luz T. Lopez

PBCWE and WiTech on a gender equal work space

In selecting your college course, you might have been advised by your titas and titos to choose based on your gender. Engineering is for boys, hotel and restaurant management is for girls. Architecture is for boys, fine arts is for girls. Computer science is for boys, marketing is for girls. They will claim that their advice is well‑meaning. It’s just easier to get a job that way.

Audrey Pe, the 16 year‑old co‑founder of Women in Tech (WiTech), isn’t taking this as is. The headstrong young woman, along with WiTech members from high schools and colleges across the country, has made it a point to introduce female role models to future tech leaders. WiTech started as Pe’s blog, where she interviews successful women in the technology sector from all around the world. Now WiTech reaches out to students as well, through its first, fully‑packed WiTech Convention last March 3 at Accenture, Bonifacio Global City.

“I was interested in coding at an early age,” Pe told SparkUp at an interview at an Ortigas café last month. “But there’s a lack of role models in tech, especially women in tech. Looking online, I saw that there was a huge gender gap, women are paid less.”

She met with like‑minded young women during a youth hackathon, and WiTech became more than just her blog. It became an organization mission “to inspire women from all around the world to pursue careers in tech, and use their abilities to make a difference in society.” Because the reality is—despite the Philippines’ high ranking in the World Economic Forum’s 2017 Global Gender Gap report—we still live in a country that has a stigma against women in power, and where politicians and entertainers can get away with saying the most sexist things.

“We need to break the stigma that feminism is just for women, because in reality we need both genders to work together to make a difference,” Pe said. And with more empowered young men and women working together, this change can affect a growing field in business—the startups.

The Philippine Business Coalition for Women Empowerment (PBCWE), a business organization made up of companies with a large employee base that are dedicated to promoting gender equality in all aspects of their business, isn’t working directly with startups. Instead, the Australian Government‑funded initiative (through the Australian Embassy’s Investing in Women program) is assisting these companies in getting their EDGE Certifications. Recognition from the Swiss‑based international organization means that a company has equal opportunities, pay, recruitment measures and training measures for men and women, as well as flexible work hours. As of March 5, Ayala Land Inc. (ALI) and Convergys are the first two Philippine companies to be EDGE‑certified, as well as being the first real estate company and business process outsourcing (BPO) enterprise, respectively, in the EDGE’s roster.

This does not mean that they do not see the value in starting early as opposed to later in a company’s life. PBCWE executive director Julia Abad, in an interview with SparkUp at the sidelines of the March 5 awarding ceremony, said gender equality is for every company, new or old.

“It makes good business sense,” Abad said. According to a 2016 study by Washington‑based think tank Peterson Institute for International Economics, which looked at around 22,000 firms in 91 countries, companies that have an executive roster of at least 30% women can rake up as much as 6% more in profits. Female corporate leaders can boost a company’s performance, thus it’s beneficial to provide equal opportunities to women in a company’s growth.

While you can’t really select who you’ll have that nice startup chemistry with, you can choose who you hire. And that’s a good start in promoting a gender‑equal workplace. It doesn’t mean that you should strictly hire an equal amount of men and women in your budding company. “What’s important is breaking gender stereotypes,” Abad explained. “Make sure that no task is limited to one gender.”

“In recruitment, you can start by removing gender stereotypes—for example, when people think finance is for women and tech is for men—and focus on competencies,” she added. To combat unconscious gender bias, she suggested removing the names or covering the names when looking at potential employees’ CVs.

She also shared that as a parent, and as someone who studies the work conditions of women, flexible work hours are a huge consideration for female job‑seekers. It means having the time to check in with family, to pick up your child from school, and to do chores. While those are considerations that men might also have, our society still delegates those roles to women.

“Right now we’re working with companies on developing best practices,” Abad said on PBCWE’s plans. And who knows? Maybe these best practices, when developed, can be used by startups too. She cited Accenture as a company that has a training module on building inclusive growth across genders.

Knowledge and abeyance of the law can also help startups in establishing gender‑equal businesses. “The Philippines has very good laws when it comes to gender equality,” said Abad. “If we implement these well, we can go a long way.”

With young women like Pe working at the school level and organizations like the PBCWE working on the corporate level, there’s definitely an encouraging environment for startups to step up and embrace a gender‑equal workforce.

MICC begins review of erring mines

THE Mining Industry Coordinating Committee (MICC) has finally started its review of 26 mines which were ordered either suspended or shuttered by former Environment Secretary Regina Paz L. Lopez more than a year ago.

In a statement, Finance Undersecretary Bayani H. Agabin said the review is now expected to be completed in six months, instead of three months.

The “fact-finding” and “science-based” review began this month with on-site visits to the mines.

Mr. Agabin said the first phase, which addresses the legal, technical and environmental concerns on mining operations, is targeted to be finished in three months.

The second phase, which covers the social and economic aspects of the mining operations, will take another three months, as requested by the technical review teams.

“When we were looking at this, we set the period for review for three months. But when the teams were formed, the concern, especially on the economic study, is that they will need the inputs from the technical, the legal and the environment,” Mr. Agabin was quoted in the statement as saying.

“If you will notice, the methodology for the social and economic aspects is that they will do a household survey. They were quite strict, the teams that we got. In fact, they didn’t want to continue on if there will not be an honest-to-goodness scientific survey done within the affected communities. That’s how meticulous they are,” he added.

Dr. Marian de los Angeles, the overall coordinator of the technical review teams, said the second phase of the review will include a “social cost benefit analysis, an evaluation of the changes in the ecosystem and a more in-detail look into the equity aspects” of the mining operations.

In February 2017, Ms. Lopez, a staunch environmentalist, ordered the suspension or closure of 26 of the country’s 41 mines for various violations, such as operating in watersheds and polluting surrounding bodies of water.

Initially the MICC has scheduled the review to start in June 2017, but has been delayed several times due to concerns over its operating budget, the terms of reference for the review teams, as well as the creation of a panel of experts to conduct the study. The review was supposed to be finished by end-2017.

The findings of the technical review teams are expected to form the basis of policy recommendations to President Rodrigo R. Duterte and concerned government agencies.

‘OPTIMISTIC’
Sought for comment, Chamber of Mines of the Philippines Executive Director Ronaldo S. Recidoro expressed hope the mining companies will get a fair assessment from the review teams.

“Apparently, na-delay sila (they were delayed). We remain positive given the developments of the DENR and the industry. We think the MICC review will be very technical, will be based on evidence, and we will get a fair assessment for our operations,” Mr. Recidoro told BusinessWorld in a phone interview.

“We would rather get it right than get it quick,” he added.

Twenty-five experts comprise the five teams, which are currently conducting the review of the 26 mine sites.

The MICC had previously said the clustering of the mines for review would be based on its location and type of ore. The first team would inspect gold, copper and nickel mines in the Cordillera Administrative Region, Cagayan Valley, Mindoro, Marinduque, Romblon and Palawan; while the second team will look into iron and nickel mines in Central Luzon.

The third team will visit chromite, nickel and iron mines in Eastern Visayas and CARAGA, while the fourth and fifth teams will check nickel and chromite mines in the CARAGA region.

The MICC in October agreed to conduct another review of the mines in 2019 and succeeding ones every two years thereafter, in keeping with its mandate under Executive Order No. 79.

Mr. Agabin previously said the MICC will start a similar review on the DENR’s order to cancel 75 other projects still in pre-production stage, as well as the standing ban on open-pit mines, to aid in future policy decisions. — Elijah Joseph C. Tubayan and Janina C. Lim

Gov’t to borrow P325B locally in second quarter

THE GOVERNMENT is set to borrow P325 billion from the domestic market next quarter through auctions of securities, the Bureau of the Treasury (BTr) announced on Tuesday.

In a memorandum posted on its website, the Treasury said it will auction off P195 billion in Treasury bills (T-bills) and P130 billion worth of Treasury bonds (T-bonds) in the next three months.

The planned borrowing for the April-June period is higher than the P240 billion it offered in the first quarter and is more than the P180 billion placed on the auction block in the same quarter last year.

This is because Treasury auctions will now be held twice a week in the second quarter, compared with the once-a-week offerings done in the January-March period.

Broken down, the government will borrow P15 billion via T-bills — P5 billion in 91-day papers, P4 billion in 182-day debt, and P6 billion in the 364-day tenor — in auctions set on April 2, 10, 16, 23 and 30; May 7, 14, 21 and 28; and June 4, 11, 18 and 25.

Meanwhile, for the T-bonds, the Treasury will auction off three-year papers on April 3, May 8 and June 13; five-year debt notes on May 2; and seven-year bonds on April 11, May 15 and June 5.

Ten-year bonds will also be offered on April 17, May 22 and June 19, while 20-year bonds will be auctioned off on April 24, May 29 and June 26.

In a separate memorandum, BTr said the modification in the issuance program was done “based on prevailing market conditions, auction results during [the first quarter of 2017], and domestic and external market events.”

In a text message, National Treasurer Rosalia V. De Leon added that the adjusted issuance program was also based on “market sentiment, including bias towards short tenors.”

“Furthermore, the BTr crafted the issuance program in close coordination with the market to maximize its participation in the fund raising of the national government,” the Treasury added in the memorandum.

In the first quarter, out of its P240-billion program, the government only borrowed a total of P124 billion from domestic creditors, with bulk of awards made in Treasury bills, as it chose to make partial awards and rejections due to higher rates.

Meanwhile, a bond trader said the increase in volume and frequency of the Treasury’s capital-raising activities will support the government’s socioeconomic programs.

“Maybe in their assessment, this is what is required to help fund the government’s socioeconomic program,” the trader said in a phone interview.

The government is embarking on an P8-trillion infrastructure spending program until 2022 in an effort to boost economic growth to 7-8% until then.

The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product.

Last week, the government raised 1.46 billion renminbi from its maiden three-year “panda” bond sale amid “overwhelming” demand from both onshore and offshore investors. — Karl Angelo N. Vidal