PBCom posts higher income in Q2

August 15, 2017 | 12:03 am

PHILIPPINE Bank of Communications (PBCom) saw its net income grow sixfold during the second quarter on the back of strong loan growth and one-off gains, as operating costs steadied from a year ago.

In a disclosure on Monday, the listed bank reported a consolidated net income of P179.841 million, surging from the P29.807 million profit booked in April-June 2016.

Total operating income rose to P1.008 billion, up 13% from the P891.649 million tallied during the second quarter of last year on the back of higher fees and charges, alongside a one-time gain worth P11.025 million from the sale of assets that reversed a P6.054-million loss posted a year ago.

“Operating income improved by 13.07% which can be attributed to the increase in rental income, service charges, fees and commissions and profit from assets sold/exchange by the total amount of P63.2 million,” the bank said in its quarterly report submitted to the Philippine Stock Exchange.

PBCom also kept operating expenses at bay at P804.898 million, even posting a slight decrease from the P805.236 million incurred a year ago which helped preserve a bigger bottom line.

The bank’s second-quarter performance drove the first semester tally to a 326.478-million net income, spelling a 464.1% leap from the P57.871 million profit as of end-June 2016.

Operating income grew by 14.6% to P2.012 billion, while expenses stood flat at P1.586 billion as the bank took steps to “increase operational efficiencies.” As a result, the bank’s cost-to-income ratio dropped to 78.8% from 90.2% previously.

Loans grew to P47.457 billion while bank deposits hit P63.944 billion, which supported a 6.1% growth in total assets to reach P91.755 billion.

With the strong growth in its balance sheet, PBCom also set aside enough capital buffers equal to 14.83% of weighted assets, well above the 10% requirement set by the Bangko Sentral ng Pilipinas.

Return on assets likewise improved to 0.73% from 0.14% a year ago.

PBCom ranks as the 19th biggest out of 42 universal and commercial banks operating in the Philippines as of end-March in terms of assets, according to central bank data.

Shares in PBCom closed at unchanged at P13.20 apiece on Monday. — Melissa Luz T. Lopez

Support our troops

August 15, 2017 | 12:03 am

My weekend was spent in Baguio. It took me just 4 hours nonstop from end to end, going there and coming back through NLEx-SCTEx-TPLEx. Vacations in my younger days — summer, Christmas-New Year’s, and Holy Week — were spent there without fail. But as traffic built up and Baguio got congested, I visited less often. My return a few days ago, after a hiatus of seven years, was one for memory lane.

Support our troops

I was invited by the Breakfast Riders community of big bikers’ clubs nationwide, in collaboration with the Department of Tourism, to join their fellowship at the Athletic Bowl last Saturday. The following day, around 1,000 bikers and their backriders moved to the Philippine Military Academy (PMA), a favorite tourist destination, to watch a silent drill team and join a boodle fight with the cadets. I spoke on both occasions on how we all could support our troops.

Here’s what I shared:

Our troops — military and police — are dying and bleeding for Inang Bayan to ensure public safety and secure the Republic from terrorists, revolutionaries and insurgents, not to mention all kinds of criminal syndicates in cahoots with them. Those who died left behind loved ones in grief and at a loss how to fend for themselves without their breadwinner. Same thing applies to those who are totally disabled.

The trauma of their loss is beyond words and beyond cure especially when medical or psychosocial interventions are hard to access. It also applies to civilians as well who suffer death, injury, loss of livelihood, homes and property. The number of displaced persons from Marawi and environs is estimated at around 400,000. While the impact varies from person to person, the common denominator is that professional help is scarce or nil when needed the most.

Various speakers commended the Breakfast Bikers for their social conscience and initiative to unite the biking community. I encouraged them to unite with like-minded organizations for this noble purpose of supporting our embattled troops across the country. Unity of purpose will contribute towards national unity to overcome generational problems and threats to our safety and security. Without it, victory will belong to the enemy.

I pointed out that they could link up with Rotary Club to which I belong. The more they network, the better to cast a wider net. They could, for example:

• Organize teams of volunteer doctors and nurses for sustained medical civic action;

• build additional toilet-shower facilities in schools often used for evacuees (“bakwits”);

• build potable water artesian wells and purification systems;

• provide solar panels for basic needs (radio-tv, lighting, charging mobile phones)

• organize and deploy psycho-social teams to deal with post-traumatic stress disorder (PTSD);

• provide adult members of impacted families with employment or livelihood opportunities and monthly allowances for those still in school.

Support our troops

Individual heads of families could mobilize their circles to think of ways to lift our troops’ morale. For instance:

• attend wakes and funerals to ease the pain of their families;

• visit the wounded in hospitals and bring them things to read, eat, drink; perhaps a little cash for their families;

• write them and their commanders thank you letters for their selfless sacrifices;

• send them inspiring music and videos to soothe them.

Joint Executive-Legislative action is strategic to ensure that our troops are provided all the means necessary for them to accomplish their missions. They must not allow our troops to be sent to battle without the adequate means to victory. A national interest mind-set and a keen sense of urgency are needed to also assure the people of their safety and security. Without it, forget peace and development.

Crucial to this is the adequacy of military and police manpower both in quantity and quality. We need more troops and support equipment for all kinds of warfare and law enforcement to defeat our enemies within and at the gates. The revival of mandatory ROTC, starting in state-owned universities and colleges, is vital step in building a cadre of patriots, young officers and responsible citizens to move the country forward. The caveat is for the AFP to field no-nonsense reliable trainers who can give a real military education.

I learned that the PMA is revising its curriculum to enable its cadets to major in humanities, engineering, and information technology. ROTC could be a four-year course that mirrors the PMA’s academic and basic military regimen built around its core values of leadership, courage (especially moral courage), integrity and loyalty. PMA only provides around 20% of the officers needed annually. The rest are procured from ROTC and Officer’s Candidate School graduates. The government should amend existing laws, rules and regulations to ensure alignment. Good training is transformative.

The LGUs, whose local chief executives head the Peace and Order Councils (POCs), have much to contribute to good government, counterinsurgency, and anti-terrorism. National agencies and civil society comprise the membership in POCs. They’re our frontliners, the first line of defense against all enemies, foreign and domestic. Honest and efficient delivery of basic services, firm law enforcement, alert emergency management, and timely intelligence will make it extremely difficult for the enemy to operate, infiltrate and entrench themselves in key sectors of government and civil society.

Those to me are the best ways to support our troops who are dying and bleeding unnecessarily because of poor governance and civics.

I took the opportunity to interview Lieutenant-General Donato San Juan, PMA Superintendent and four graduating cadets for my DZRH show on television-radio-online entitled Thinking Out Loud with Raffy Alunan. They had much to share about the PMA’s transformation journey, the focus on meritocracy and character formation, and their life in the barracks — how they fend for each other to ensure unity, solidarity and teamwork, now and in their professional life.

Watch out for it this Saturday at 4 p.m.: DZRH News Television Ch. 18 on Cignal, Ch. 129 on Sky; DZRH AM Radio 666khz; and online on DZRH News Facebook and YouTube. SUPPORT OUR TROOPS!

Rafael M. Alunan III served in the Cabinet of President Corazon C. Aquino as Secretary of Tourism, and in the Cabinet of President Fidel V. Ramos as Secretary of Interior and Local Government.

rmalunan@gmail.com

map@map.org.ph

http://map.org.ph

Shadow over HK property leaves Singapore ahead

August 15, 2017 | 12:03 am

SINGAPORE/HONG KONG — Hong Kong’s property stocks are cheaper than Singapore’s, although not cheap enough to account for the risk that the world’s least affordable city could have a housing crash.

Singapore home sales fall 21% in June as fewer projects launched — A river taxi boat ply along the river next to the financial district in Singapore on June 29. — *AFP*

That’s according to analysts and money managers from Nomura Holdings, Inc. to Janus Henderson Group Plc. In Singapore, some are seeing signs of a market bottom after years of home price declines. Hong Kong, where any letup in government cooling measures looks unlikely in the short term, may be teetering on the edge of a slump, with Morgan Stanley among those seeing a risk of multiyear declines.

The upshot: while Hong Kong developers’ shares are cheaper across a range of measures, their Singapore peers look more attractive.

“The consensus is that Hong Kong’s housing prices may have more downside risk than upside,” said Joyce Kwock, an analyst at Nomura Holdings.

One valuation gauge shows that Hong Kong developers are trading at larger discounts to net asset value than peers in Singapore, with shares of Henderson Land Development Co. at about a 54% discount compared with City Developments Ltd.’s 20%, according to Bloomberg calculations based on data from Nomura.

A price-to-book comparison also shows Hong Kong property companies at lower valuations than their Singapore peers.

But the Singaporean market — especially the residential part — “looks like it’s at the start of a multi-year upside cycle,” said Xin Yan Low, a property securities analyst at Janus Henderson Investors. “We don’t think it looks expensive as of now.”

Singaporean real estate owners and developers have outperformed this year, gaining 33% in their first rally after four years of declines, compared to a 24% increase for Hong Kong peers, based on Bloomberg Intelligence indexes.

Developer CapitaLand Ltd. said that property investors see Singapore as more attractive than Hong Kong, London or cities in Australia. CapitaLand and City Developments both say that Singapore’s residential market may be “bottoming out.” Hong Kong home prices have shot ever higher, bouncing back from the global financial crisis and periodic bouts of government cooling, while Singapore residential prices have declined 12% from a peak, dropping for 15 straight quarters.

A 70% divergence in home prices in Singapore and Hong Kong over the past six years is due for a reversal, according to Morgan Stanley. Singapore developers score better in terms of affordability for buyers, a tight home supply, and a potential easing of policy measures, the bank said in a note.

The bank’s analysts forecast Singapore residential property prices to rise 5% in 2018. In contrast, Hong Kong’s multiyear price decline could start with a drop of 5% this year. — Bloomberg

Korea tensions ease as US plays down war risks

August 15, 2017 | 12:03 am

SEOUL/BEIJING — Tensions on the Korean peninsula eased slightly on Monday as South Korea’s president said resolving Pyongyang’s nuclear ambitions must be done peacefully and key US officials played down the risk of an imminent war with North Korea.

Concern that North Korea is close to achieving its goal of putting the mainland United States within range of a nuclear weapon has underpinned a spike in tensions in recent months.

US President Donald J. Trump warned at the weekend that the US military was “locked and loaded” if North Korea acted unwisely after threatening last week to land missiles near the US Pacific territory of Guam.

“There must be no more war on the Korean peninsula. Whatever ups and downs we face, the North Korean nuclear situation must be resolved peacefully,” South Korean President Moon Jae-in told a regular meeting with senior aides and advisers.

“I am certain the United States will respond to the current situation calmly and responsibly in a stance that is equal to ours,” he said.

While backing Mr. Trump’s tough talk, US officials including National Security Adviser H.R. McMaster played down the risk on Sunday of the rhetoric escalating into conflict.

“I think we’re not closer to war than a week ago, but we are closer to war than we were a decade ago,” Mr. McMaster told ABC News’ This Week.

US Central Intelligence Agency Director Mike Pompeo said North Korean leader Kim Jong Un might well conduct another missile test but talk of being on the cusp of a nuclear war was overstating the risk.

“I’ve seen no intelligence that would indicate that we’re in that place today,” Mr. Pompeo told Fox News Sunday.

Asian stocks rallied on Monday as investors took heart from the less bellicose rhetoric.

However, North Korea reiterated its threats, with its official KCNA news agency saying “war cannot be blocked by any power if sparks fly due to a small, random incident that was unintentional.”

“Any second Korean War would have no choice but to spread into a nuclear war,” it said in a commentary on Monday.

MISSILE DOUBTS
South Korean Vice-Defense Minister Suh Choo-suk agreed North Korea was likely to continue provocations, including nuclear tests, but did not see a big risk of the North engaging in actual military conflict.

Mr. Suh again highlighted doubts about North Korea’s claims about its military capability.

“Both the United States and South Korea do not believe North Korea has yet completely gained reentry technology in material engineering terms,” Mr. Suh said in remarks televised on Sunday for a Korea Broadcasting System show.

The United States and South Korea remain technically still at war with North Korea after the 1950-53 Korean conflict ended with a truce, not a peace treaty.

Tension in the region has risen since North Korea carried out two nuclear bomb tests last year and two intercontinental ballistic missile tests in July, tests that the North often conducts to coincide with important national dates.

Tuesday marks the anniversary of Japan’s expulsion from the Korean peninsula, a rare holiday celebrated by both the North and the South. Messrs. Moon and Kim, who has not been seen publicly for several days, are both expected to make addresses on their respective sides of the heavily militarized border.

Mr. Trump has urged China, the North’s main ally and trading partner, to do more to rein in its neighbor, often linking Beijing’s efforts to comments around US-China trade. China strenuously rejects linking the two issues.

Mr. Trump will issue an order later on Monday to determine whether to investigate Chinese trade practices that force US firms operating in China to turn over intellectual property, senior administration officials said on Saturday.

Chinese Foreign Ministry spokeswoman Hua Chunying said that China has said many times the essence of China-US trade and business ties is mutual benefit and that there is no future in any trade war between China and the United States.

“There would be no winners; both would lose,” she told a daily news briefing, adding China has always paid great attention to protecting intellectual property rights and cracked down on those who infringe upon them.

“The (Korean) peninsula issue and trade and business issues are in a different category from each other,” Ms. Hua added. “On these two issues China and the United States should respect each other and increase cooperation. Using one issue as a tool for exerting pressure on another is clearly inappropriate.”

China’s official China Daily said such an investigation would poison the relationship between the two countries.

“By trying to incriminate Beijing as an accomplice in (North Korea’s) nuclear adventure and blame it for a failure that is essentially a failure of all stakeholders, Trump risks making the serious mistake of splitting up the international coalition that is the means to resolve the issue peacefully,” it said.

“Hopefully Trump will find another path. Things will become even more difficult if Beijing and Washington are pitted against each other.” — Reuters

Back-nine birdies lift Thomas to PGA title in shoot-out thriller

August 15, 2017 | 12:03 am

CHARLOTTE — Two spectacular birdies in the last six holes brought Justin Thomas his first major title, the 14^th-ranked American taking the PGA Championship on Sunday in a back-nine shootout thriller.

On a day that saw five players share the lead at one stage, Thomas fired a three-under par 68 to finish 72 holes on eight-under par 276 for a two-stroke victory over South Africa’s Louis Oosthuizen, Italy’s Francesco Molinari and American Patrick Reed.

Thomas rolled in an amazing 40-foot chip shot at the par-3 13^th for a two-stroke lead and curled a 14-foot putt into the left side of the cup to birdie the par-3 17^th for a three-shot edge, making a closing bogey all-but irrelevant.

“To make a birdie there was beyond a bonus,” Thomas said of 17. “And 13 was really special as well.”

Thomas, 24, claimed the Wanamaker Trophy and grabs the top prize of $1.89 million (€1.59 million) for his fourth victory of the season after last year’s CIMB Classic in Malaysia and two January events in Hawaii, the Tournament of Champions and Sony Open.

World number three Hideki Matsuyama, trying to become Japan’s first men’s major golf champion, led at the turn but had five bogeys and three birdies on the back nine to share fifth with US star Rickie Fowler on 279.

Canada’s Graham DeLaet and 54-hole leader Kevin Kisner were another shot back.

Thomas sandwiched a birdie between two bogeys on the first three holes, but bounced back with birdies at seven, nine and 10 — the last after his putt hung on the edge of the cup for nearly 10 seconds before falling in.

One by one, rivals fell aside, the last being compatriot Kisner, whose 209-yard eagle long shot from the 18^th fairway to force a playoff landed in a creek.

Matsuyama sank a 22-foot birdie putt at the par-5 10^th but made bogeys on the next three holes, responded with two birdies, then missed a four-foot par putt to bogey 16 and closed with another to fall back.

Oosthuizen, the only major winner among the contenders after his 2010 British Open triumph, holed a 34-yard chip shot eagle at the par-5 15^th but followed with a bogey to blunt the impact of his closing birdie.

Tension mounted as Matsuyama, Molinari, Kisner, Thomas and Stroud all shared the lead at seven-under at one stage. — AFP

Ex-mayor of Cebu small town to face charges for unliquidated P0.58-M fund

August 15, 2017 | 12:03 am

THE OFFICE of the Ombudsman has ordered the filing of charges against Jay L. Olivar, former mayor of San Remigio, Cebu for P585,000.00 in cash advances made in 2011 that remain unliquidated. The fund was taken for various purposes, including anti-illegal drugs campaign, Christmas celebration, and supplies. In a statement, the Ombudsman said Mr. Olivar attempted to explain his failure to liquidate the public funds by claiming that he assigned a job order employee to prepare the documents, who, in turn, was not able to do so until his term ended in 2013. The ex-mayor also asserted that the local government was busy in its programs and projects, especially after typhoon Yolanda that struck the Visayas in November 2013. Ombudsman Conchita Carpio Morales said the defenses raised by Mr. Olivar are “self-serving and unsubstantiated. As the accountable officer, respondent should have been vigilant in processing his liquidation; or if he devolved the task to other persons, he should have exercised efficient control and supervision to ensure timely liquidation of his cash advances.” Mr. Olivar, who ran again for mayor but lost in the 2016 elections, is facing four counts of Failure to Render Accounts under Article 218 of the Revised Penal Code. San Remigio is a third-class municipality with a little over 51,000 residents based on the 2010 census.

Cebu Pacific aircraft lease deal approved for investment incentives

August 15, 2017 | 12:02 am

THE Board of Investments (BoI) recently approved the P6.1-billion air transport project of Cebu Pacific (Cebu Air, Inc.), recognizing it as a public infrastructure and logistics activity under the 2017 Investment Priorities Plan (IPP).

The project involves the acquisition of one Airbus A330 aircraft on a finance lease scheme with Airbus SAS to add to its current fleet of 58 aircraft.

The new aircraft unit will add to the fleet of Cebu Air, which includes A319s, A320s, A330s and ATR 72-500s and ATR 72-600s.

The A330 is a long-range, twin-aisle commercial passenger aircraft with a maximum passenger capacity of 436.

Commercial operations of the new aircraft began in May this year on the Manila-Incheon and Manila-Bangkok routes and adding 186 new jobs to company’s current roster of around 3,400 personnel.

The IPP, a list of priority investment activities that may be granted incentives, was proposed by the BoI in February and approved by President Rodrigo R. Duterte in March.

The IPP’s focus is innovation-driven and job-generating businesses; inclusive business for agribusiness and tourism; broader coverage of manufacturing activities; information technology (IT) and IT-enabled services for the domestic market and telecommunications services for new market players; and environment and climate change-related projects, among others.

“The growth of the air transport industry remains robust. This will allow Cebu Pacific to further expand its operation as a major budget carrier, stimulating passenger traffic growth with more affordable fares from these strategic routes. More tourists in Asian countries especially from Korea are expected to come in with this new project,” Department of Trade and Industry Undersecretary and BoI Managing Head Ceferino Rodolfo was quoted as saying in a statement. — Patrizia Paola C. Marcelo

PAL swings to loss on higher fuel costs

August 15, 2017 | 12:02 am

PAL HOLDINGS, Inc. (PAL) reported a P500-million net loss attributable to parent in the second quarter, as operating expenses soared due to high fuel costs.

A regulatory filing showed the listed company that operates Philippine Airlines (PAL) swung to a net loss of P500.9 million in the April to June period, versus the P1.6-billion attributable income during the same period a year ago.

Total revenues, which include passenger, cargo and ancillary revenues, grew 21% to P34.44 billion during the second quarter.

“Passenger revenues improved by P4.862 billion attributable to the increase in number of passengers as a result of additional flight frequencies and introduction of new routes. Cargo revenues also showed a 27.8% growth following the increase in volume of cargo transported in 2017. Ancillary revenues grew as well by 24.4% mainly due to increase in passengers,” PAL Holdings said.

Expenses also increased by 33% to P34.97 billion for the April to June period, primarily due to higher expenses from flying operations; maintenance; passenger service; aircraft and traffic servicing; and reservation and sales.

Flying operations expenses went up by 43% to P19.27 billion during the three-month period, mainly due to higher fuel costs and aircraft lease charges.

Fuel costs surged 78.2% in the second quarter, as the average fuel price rose to $73.89/barrel in 2017 from $65.87/barrel in 2016, and higher fuel consumption as PAL added more flights.

For the first half, PAL Holdings posted a net loss of P1.62 billion, from a P4.53 billion profit a year ago.

Shares in PAL rose 4 centavos or 0.78% to P5.20 each at the close of trading on Monday. — Patrizia Paola C. Marcelo

‘Gift from God’ Elvis is semi-divine, 40 years after his death

August 15, 2017 | 12:02 am

MEMPHIS – Pilgrims come all day every day, filing past in silence, fighting back tears as they place mementos at Elvis Presley’s grave site, pausing to reflect, take pictures or say a prayer.

A MICROPHONE used by Elvis Presley is seen at Sun Studio where Elvis Presley made his first recordings, in Memphis, Tennessee. Forty years after his tragic death at age 42, more than 600,000 fans visit each year, floral tributes still gather from around the world in the Meditation Garden, where the King of rock ‘n’ roll his buried at his Graceland home in Memphis. – *AFP*

More than 600,000 fans visit each year, paying tribute to the icon of popular culture, the once rebellious sex symbol turned family entertainer of whom John Lennon said “before Elvis there was nothing.”

Forty years after his tragic death aged 42, floral tributes from around the world still line the Meditation Garden, where the king of rock ‘n’ roll is buried at his Graceland home in Memphis.

On Tuesday thousands, if not tens of thousands, are expected to attend this year’s candle-light vigil to mark the anniversary of Elvis’s death.

Lisa Bseiso will be one of them. She had what she calls a “very spiritual, deep encounter” with Presley’s spirit when she first visited Graceland with her husband in August 2014.

“He was sitting in a chair,” remembers the 36-year-old daughter of a Palestinian father and Colombian mother, born and raised in Qatar. “He had tears coming down his eyes and he said: ‘Don’t forget me, spread my legacy in your part of the world,’” she recalls.

So she went home and set up The Official Elvis Presley Fan Club of Qatar, which she now plans to expand to Dubai, Bahrain and Kuwait.

‘QUASI-MESSIANIC’
“He’s a gift from God to all of us,” she tells AFP at Graceland, where she is visiting with her Palestinian-Jordanian husband, Colombian mother and friends. “God took him back home, but he’s still here.”

A life-long fan, listening to his music helped her recover from a car accident in 1999 that left her in a coma for two weeks, she says.

The idea that Presley’s spirit lives on is central to his fans of all ages, from all countries, who find his music soothing in times of trouble and are moved by his rags-to-riches story and legendary generosity.

Presley is far more than just another poster child for the American dream or even a man whose looks matched the Greek definition of classical beauty, says British author Ted Harrison.

“The Elvis known today is not the real Elvis, but a mythological figure millions can relate to in their own way,” says the author of The Death and Resurrection of Elvis Presley.

“For some fans he also now fills a spiritual and religious vacuum in modern secular society. He is given a semi-divine, quasi-messianic status and mystical stories are told about his life.”

Thousands have shrines to Presley in their homes, consider visits to Graceland a pilgrimage, write prayers on the wall outside and some even go so far as to confuse him with Jesus, Harrison says.

‘GOD STAMPED HIM’
Bseiso does not elevate Presley to the status of prophet or Biblical figure, but has found in him a higher calling as she seeks to spread his music and challenge stereotypes about Arabs or the Middle East.

“I think when he was born God stamped him to be able to influence people and touch people,” she said. “His music talks to you… it has a spiritual meaning in his words.”

A 10-minute drive from Graceland, the guide at Sun Studio tells fans they are on “sacred and hallowed” ground in the basement studio where Presley recorded his first song “That’s All Right” in 1954.

Ecstatic fans jostle to stand on the exact spot where he stood, and cradle and croon into the microphone he used, manically snapping photographs and tingling with delight.

“It’s heaven!” sighs Daniela Soto-Cuadra, a 42-year-old lawyer and mother of two from Chile, getting married at Graceland on Monday to a man she’s been dating only a month.

“I actually have goose bumps,” says Tessa Bruns, 40, an anesthetist from Wisconsin bursting with happiness under her baseball cap.

“Being a somewhat religious person and a Catholic,” she says, “I would say Elvis is a religion, the blues, the rhythm, his legacy.”

So what would she have told Presley had she ever met him? “I would say I think I worship the ground you walk on.” – AFP

Britain’s Big Ben to fall silent for four years

August 15, 2017 | 12:02 am

LONDON — Britain’s much-loved Big Ben will fall silent for four years from next week as conservation work is carried out on the famous 19^th century bell in a clock tower next to the Houses of Parliament.

“Big Ben falling silent is a significant milestone in this crucial conservation project,” Steve Jaggs, whose official title is “Keeper of the Great Clock,” said in a parliament statement on Monday.

“This essential program of works will safeguard the clock on a long term basis, as well as protecting and preserving its home — the Elizabeth Tower,” he said.

It will be the longest period that Big Ben, whose bongs are familiar to many people around the world because of their use in BBC radio and television broadcasts, has been silent in its 157-year history.

The Great Bell, popularly called Big Ben, weighs 13.7 tons and strikes every hour to the note of E. Four smaller bells also chime every 15 minutes.

The last bong before the refurbishment will be at 12 p.m. (1100 GMT) on August 21, the statement said.

The clock will still tell the time silently until 2021 and the chimes will continue to be rung on important occasions such as New Year’s Eve.

The Elizabeth Tower, which is 96 meters high, is the most photographed building in Britain.

The tower itself is commonly referred to as Big Ben even though the name applies only to the bell.

The clock’s cogs and hands as well as the four dials will be removed, cleaned up and repaired as part of the work.

The project’s cost was estimated last year at £29 million (€31.9 million, $37.7 million).

Because the clock mechanism will be temporarily out of action, a modern electric motor will drive the clock hands until the clock is reinstated.

Parliament also said that the clock’s faces would have to be covered up while they are being repaired.

“However, to ensure that the public are still able to set their watches by this most important of time pieces, one working clock face will remain visible at all times throughout the works,” it said. — AFP

MGM Resorts bets on wealthier masses to catch up in Macau

August 15, 2017 | 12:02 am

HONG KONG — MGM Resorts International is counting on a growing number of affluent Chinese customers to drive revenue at its new Macau property, as it strives to catch up with an industry rebound in the enclave.

The Las Vegas-based company’s $3.3-billion resort on the Cotai strip, its second property in Macau that is scheduled to open in the fourth quarter, aims to cater more to the recreational gambler than the exclusive high-rollers crowd, according to Chief Executive Officer James Murren.

“Our business model is not predicated on the VIP business,” Mr. Murren said in an interview on Bloomberg TV with Rishaad Salamat on Monday. “Our strategic plan is built on catering to this tremendously emerging more-affluent Chinese customer, a customer that’s looking for more experimental experiences, not just a selfie moment or a gaming table.”

MGM is playing catch-up in Macau, the world’s largest gambling market, after the former Portuguese colony began a rebound a year ago following China’s corruption crackdown in 2014. MGM’s rivals Las Vegas Sands Corp. and Wynn Resorts Ltd. have benefited more from the return of tourists and high-stakes gamblers, attracting customers with newer facilities in the last two years.

MGM hasn’t done as well from Macau’s VIP rebound as it didn’t have an early entry in Cotai, Mr. Murren said in the interview. The new project was originally scheduled to open in 2016, but technology issues caused delays that required more time and money, he said.

MGM last month posted weaker-than-expected profit for the second quarter, with revenue in China sliding to $449 million. It lost market share in both the high-roller business and the mass market, according to a note from Sanford C. Bernstein & Co.

“The new project will finally put MGM China on the map to compete with its peers on the Cotai strip,” said Bloomberg Intelligence analyst Margaret Huang on Monday. “Its focus on the mass market should help to boost margins, but there are still challenges in doing so because it is a late joiner.”

Ms. Huang noted the casino operator is less experienced in capturing this volume-driven business, as it has been predominantly focused on high-end at the Peninsula, its other Macau property.

Shares of Macau unit MGM China Holdings Ltd. rose as much as 1.7% Monday in Hong Kong trading, outperforming the 0.6% gain in the benchmark Bloomberg Intelligence Macau casino index.

CUTTING-EDGE TECHNOLOGY
The Cotai resort plans to offer approximately 1,400 hotel rooms and suites, and will have a theater with a 900-square-meter LED screen, the largest in the world.

“We’re very adamant particularly because we’re not an early entrant to Cotai,” Mr. Murren said. “We have to wow people, and that takes time.”

Mr. Murren said the market potential in Japan, where the country is hashing out casino regulations, is “tremendous,” but the opportunity is unclear at the moment as the government hasn’t nailed down specifics. Japan recently released a proposal outlining possible restrictions on the industry, including limits on the amount of gaming floor space and the number of times an individual may enter a casino.

Lawmakers in the country are working on legislation to implement casinos after legalizing them in December. Mr. Murren said last year that he had high hopes for a $10-billion casino resort project there.

Ultimately, it will “boil down to the one guidance they have not given, which is the tax rate,” Mr. Murren said Monday. If they adopt a Singapore-like model, “you’re going to see a very competitive bidding for Japan.” — Bloomberg

Insurers’ premiums up in 1st half

August 15, 2017 | 12:02 am

THE INSURANCE INDUSTRY recorded a double-digit growth in total premiums in the first half, rebounding from the previous year’s figures, on the back of expansion across all sectors.

In a statement e-mailed to reporters on Monday, the Insurance Commission (IC) said the industry posted an 11.15% rise in net premium income in the January to June period to P117.29 billion from the P105.52 billion logged in the comparable period a year ago.

“It should be recalled that during the first half of 2016, the insurance sector experienced a 9.11% decline in premium income to P105.52 billion from P116.11 billion posted during the same period in 2015. This year, however, the insurance industry posted a positive growth in terms of premiums generated as early as the first half of the year,” Insurance Commissioner Dennis B. Funa was quoted as saying in a statement.

The January to June period’s expansion was attributed to “positive growth” of the premium income of non-life and life insurers, as well as of mutual benefit associations (MBAs).

The life insurance sector recorded a 10.46% rise in its total premium income in the six months ended June to P90.79 billon from the P82.20 billion in the comparable period in 2016 after more firms produced insurance products.

The Insurance Commissioner said premiums produced from the sale of traditional life insurance rose 3.05%, while that from variable life insurance products also jumped by 13.69% in the first half of the year.

“The increase in premiums generated from the sale of traditional life products was brought about by the remarkable increase in its single premiums and first year premiums,” Mr. Funa said. “For variable life insurance products, on the other hand, while there is a slight decrease in single premiums, there were significant increases in its first year and renewal premiums.”

Meanwhile, the non-life sector’s net premiums written also registered a double-digit increase of 12.78% to P22.20 billion in January to June from the P19.69 billion seen in the same period in 2016, with motor car and fire policies accounting for bulk of the total.

“Similar to the performance in the first quarter of this year, the non-life insurance sector continues to post significant increases in terms of net premiums written in the motor car and fire lines which remain to comprise the majority of the total net premiums written,” the Insurance Commissioner said.

MBAs saw the fastest growth of 18.03% to P4.29 billion in the first semester compared to the P3.64 billion in the first half of last year.

The sector’s net assets likewise jumped 14.78% in the first six months of the year to P1.48 trillion from the P1.29 trillion in the previous year while total liabilities reached P1.17 trillion by end-June, 13.86% up compared to the P1.03 trillion recorded in the same period a year ago.

Total net worth of all three sectors, meanwhile, stood P310.74 billion in the first semester, 18.37% higher form the P262.51 billion posted in the comparable year-ago period.

“Considering the significant increases in the paid-up capital of several companies, the insurance industry posted a 15.42% increase in total paid-up capital from P42.55 billion as of end-June 2016 to P49.10 billion this year,” the IC stated. — Janine Marie D. Soliman

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