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PLDT says claim that executives own labor-contracting firms ‘baseless, fabricated’

PLDT, Inc. (PLDT) said comments attributed to the labor secretary regarding the telco’s executives owning a number of labor-only contracting companies are false and misleading.
In a statement on Thursday, PLDT said “These allegations are baseless and fabricated.”
“Labor and Employment Secretary Silvestre H. Bello III has been quoted by some news organizations as saying that he has sought the help of the Securities and Exchange Commission (SEC) and the National Bureau of Investigation (NBI) to look into allegations that ‘many’ of the 38 service contractors recently sanctioned by the Department of Labor and Employment (DoLE) for engaging in labor-only contracting for PLDT are either owned or managed by ‘high ranking’ officials of PLDT,” PLDT said.
“The service contractors engaged by PLDT are bona fide corporations properly registered with the DoLE and the SEC (Securities and Exchange Commission). They are legitimately providing services to many other companies aside from PLDT. None of these is owned or managed by PLDT officials,” PLDT said in its statement.
It added, “PLDT welcomes an investigation into this allegation as the Company has nothing to hide.”
The Labor department issued a clarifcation that its order to PLDT to regularize more than 7,000 employees is final and executory.
Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group which it controls. — Gillian M. Cortez

Your Weekend Guide (July 13, 2018)

Morissette live

ALDUEZA Events Production presents Morissette is MADE: A Homecoming Concert on July 14, 8 p.m., at the Waterfront Cebu City Hotel & Casino. For tickets, visit TicketWorld (www.ticketworld.com.ph, 891-9999).

Artist talk

THE Cultural Center of the Philippines hosts an artist talk in the form of a conversation between Lesley-Anne Cao and artist, curator, and mentor Gary-Ross Pastrana as part of the exhibition The hand, the secretary, a landscape. The discussion will touch on objects and object-making, and how we generate meaning as artists and viewers. A Q&A will follow. Admission is free. The talk will take place at the 4th floor Small Gallery on July 14 at 3 p.m. The exhibit The hand, the secretary, a landscape is extended until Aug. 12 at the Bulwagang Fernando Amorsolo and 4th Floor Atrium. For details contact the CCP Visual Arts and Museum Division at 832-1125 loc. 1504/1505 and 832-3702, 0917-603-3809, e-mail ccp.exhibits@gmail.com, or visit www.culturalcenter.gov.ph.

Rak of Aegis returns

PETA brings Rak of Aegis back for a 6th run until Sept. 2. The musical, featuring the music of the jukebox band Aegis, tells the tale of a perpetually flooded barangay and how its inhabitants adapt. The PETA Theater Center is at No. 5 Eymard Dr., New Manila, QC. For tickets and schedules, visit TicketWorld (www.ticketworld.com.ph, 891-9999).

Virgin Labfest

THE CULTURAL Center of the Philippines, Tanghalang Pilipino, and Writers Blog, Inc. present Virgin Labfest 14: Untried, Untested, and Unstaged Plays at the CCP Little Theater and Studio Theater until July 15. Twelve new works, three “revisited” plays (audience favorites from last year’s festival), staged readings, and a showcase of works from the VLF Writing Fellowship Program are being staged. For tickets and schedules, visit TicketWorld (www.ticketworld.com.ph, 891-9999).

Bond giants’ $100-billion bet on growth not paying off amid uncertainties

THE LUMINARIES of high finance have staked more than $100 billion in one of the boldest bond bets of the post-crisis era: That a global economy firing on all cylinders would spur government yields in the West and boost emerging-market credits.
The wager comes in the form of bond funds that have a negative average duration, meaning they are heavily positioned for rising interest rates. But the trades are struggling. A perfect storm — including muted core inflation increases and relentless haven flows — has kept a lid on longer-dated developed-market yields. Trade tensions and a stronger dollar have killed the emerging-market rally, bucking consensus on Wall Street.
That’s all left portfolio managers like Jack McIntyre with a big question: what will it take for the strategy to come good?
“Trade tensions have hurt our European growth thesis,” argued McIntyre, who oversees $58 billion of fixed-income assets at Brandywine Global Investment Management. “We need clarity on how trade is going to unfold for our short European duration positions to outperform again.”
It’s not just about the tensions in global commerce, however. A combination of the protectionist threat, European political risks, muted price increases and policy maker success — the Fed has so far navigated a smooth exit from stimulus and increased rates without spooking the market — have all helped ensure that term premiums remain contained.
HASENSTAB
That’s bad news for the more than $100 billion of bond funds which have a negative average duration, according to data compiled Morningstar Inc. As of the end of the first quarter, about 80% of that money is in funds managed by Franklin Templeton Investments, the data show.
Franklin Templeton’s bond chief, Michael Hasenstab, has been waiting since at least 2016 for his wager — that US rates would return to a pre-crisis normal of sorts thanks to an economic upswing and diminishing monetary stimulus — to come good. He extended the bet earlier this year, primarily using interest rate swaps to push average duration down to a record low of -0.85 years as of the end of March.
In a May interview with Bloomberg TV, Hasenstab predicted rising inflationary pressures, an onslaught of US bond supply and the Federal Reserve’s moves to pare its balance sheet would conspire to drive up the US 10-year yield to as high as 4%.
The yield initially dropped on Wednesday after the Trump administration released the biggest list yet of Chinese goods it may hit with tariff increases. It later recovered to trade slightly higher at about 2.86%.
A representative of the fund declined to comment further.
GROSS, GOLDMAN
Bill Gross’s Janus Henderson Global Unconstrained Bond Fund has been battered this year betting that German bund yields will catch up with Treasuries. Instead they are the farthest apart in almost three decades, with bunds anchored by rising political risks and a downward reassessment of European Central Bank rate hike expectations.
A spokeswoman for the fund didn’t respond to e-mailed requests for comment.
“Getting duration calls right consistently is difficult in the fixed income world,” said Ashis Dash, who researches fixed-income funds as an associate director at Morningstar. “One has to time it well to make money out of it.”
Goldman Sachs AM’s $4 billion Strategic Income Fund has underperformed all peers in the past month, according to Bloomberg data, despite marketing itself as a portfolio that can “potentially gain in any rate environment.” While the fund’s short positions on US rates was a plus for performance in May, it was pulled down by its exposure to emerging-market bonds.
Iain Lindsay, the firm’s co-head of fixed-income portfolio management, said competing pressures from robust US growth on one hand and trade tensions on the other underscore the need for a “dynamic approach” to duration management.
THE STREET
The buyside is hardly alone in having been caught out by the shifting narrative on growth and risks — many Wall Street strategists have been dialing back their forecasts. Analysts at JPMorgan Chase & Co. admitted in a recent research note that they have been too bullish on corporate and emerging-market debt.
It’s not game over for the funds that have staked money on the big growth bet. There’s still plenty of scope for a reversion in markets back to the position they were in at the beginning of the year, while the seeds have been planted for a durable resurgence in trend inflation in the US and Europe. The International Monetary Fund projects the global economy will grow 3.9% this year and next, the fastest pace since 2011.
All the same, one estimate of the term premium, the extra compensation to hold longer-maturity US bonds over short-term securities, remains in negative territory.
“It’s hard to imagine that some of these big positional bets are really going to pay off if yields don’t end higher than where they peaked this year,” said Ian Lyngen, head of US rates strategy at BMO Capital Markets Corp. — Bloomberg

Rap star Cardi B gives birth to daughter

NEW YORK — Cardi B, who has quickly risen to become one of the most prominent women in hip-hop, has become a mother, announcing Wednesday the birth of daughter Kulture Kiari Cephus. The 25-year-old New York rapper broke the news on Instagram where she posted a picture of herself pregnant, nude, and tattooed in a room full of flowers, and said her daughter was born Tuesday. Cardi B, who previously revealed the baby’s gender, had the child with fellow rapper Offset, one-third of the hard-living Atlanta hip hop trio Migos. He has three other children from previous relationships. The baby’s name clearly reflects her father, who was born as Kiari Kendrell Cephus. Migos has put out albums entitled Culture and Culture II. Cardi B has become one of the biggest new stars on the US musical landscape since the runaway success last year of her song “Bodak Yellow,” which touches on her former life making ends meet as a stripper. A Bronx native whose real name is Belcalis Almanzar, Cardi B recently returned to number one on the US singles chart with “I Like It,” which nods musically to her Latin heritage. — AFP

The payoff is nothing short of sensational


By Anthony L. Cuaycong
HAPPY BIRTHDAYS is nothing if not peculiar off the bat. And it wears its strangeness proudly, assured of its capacity to unveil a masterpiece from an empty canvas by handing you the brush. As a truly sweeping god game from the mind of Harvest Moon creator Yasuhiro Wada, it melds its ambition with seemingly simple presentations; the visuals are colorful, if childlike, and accompanied by soothing keyboard acoustics, but its demands are such that a 20-minute tutorial is required for you to get going, and much longer after to experience comfort and confidence in what you’re doing. Once you get the hang of it, however, the payoff is nothing short of sensational.
Indeed, time is a crucial element in Happy Birthdays. It begins with you finding a map that leads you to a forest and subsequently transports you to an undeveloped world. To get back home, you need to first oversee the growth of your new surroundings by managing the ecosystem; from the temperature to the terrain, you control the variables from which you create life. Needless to say, the scope of your work within the game requires a complex interface. You’re not in a shoot-’em-up where button mashing and mere memorization of pathways will bring you success. You’re in the other extreme, where planning is critical and creativity is key.
No doubt, Happy Birthdays is envisioned to be an eye-opener on environmental change. It aims for as wide an audience as it can get, presenting lessons on the ecosystem and the constant need for balance in a manner that even younger gamers can appreciate. That said, it cuts no corners; you may have an avatar guiding you through the mechanics, even nudging you in the right direction, but, ultimately, the choices are yours to make. In the Nintendo Switch version of Birthdays the Beginning, you get the consolation of choosing a relatively developed biome from lush, cold, or hot presets. Still, your ultimate objective is clear; your task as your world’s omnipotent being is done when you witness the birth of man.
For all the grand intentions and the steep learning curve, Happy Birthdays boasts of stunningly straightforward gameplay. You move to raise or lower the land you’re cultivating to make way for ranges and bodies of water. Your design decisions affect temperature and humidity, which, in turn, dictate the types of flora, fauna, and animals that will thrive or suffer. It’s not as easy as it sounds, though. Time and timing are of the essence; as evolution is best when occurring gradually, so, too, must your plan progress. Else, you run the risk of inducing an extinction level event.
The best things in life are free, goes the cliche. In Happy Birthdays, they’re anything but. Creation and evolution require points, which you amass via the collection of stars throughout the game. Meanwhile, you get to see the fruits of your labor in veritable snapshots; the passage of millennia shows you how your experimentation has influenced the evolution of the world at your fingertips. Parenthetically, planet statistics (e.g. population, temperature) are churned out to enable you to note how every little thing you do affects the swath at your disposal. From the close to 300 species the game gives you an opportunity to “birth” and nurture, you comprehend which have thrived and which have given way to new life, and, accordingly, the gravity of the decisions you’ve made.
In this context, Happy Birthdays cannot but be forgiving; in fact, it prompts exploration of all that is possible under the given parameters. By way of incentive, it maintains a library highlighting the species you’ve birthed; adding them on their respective birthdays gives you points which you can then use to aid you in your terraforming. Parenthetically, it offers a Free Mode by which you can attempt to expand and ultimately complete your library as you please, as well as a Challenge Mode that gives you specific objectives.
On the whole, Happy Birthdays is a slow burn that pays off long after you’ve put the game to storage.
At its best, it’s an extremely engaging educational tool that rewards your initial patience and subsequent efforts with impactful knowledge. And it gets its best iteration on the Switch, which boasts of touchscreen controls and a handheld option that serve to underscore its most important investment: time.
Highly recommended, and a decided bargain at $39.99.

PHL, Spain ink agreement to pave way for direct flights

THE Department of Foreign Affairs (DFA) said the Philippines has inked an agreement with Spain to improve air connectivity between the two countries.
In an e-mail interview with BusinessWorld on Thursday, the Philippine Embassy in Madrid said the agreement is meant to grant direct flights linking the Philippines and Spain.
“Once private airlines such as PAL decide to take advantage of this opportunity, we expect this to boost trade, tourism, and people-to-people connectivity between the Philippines and Spain,” it added.
In a statement on Wednesday, DFA said the air transport agreement signed on June 12 in Madrid intends to create “fair and equal opportunities for both countries” with the promotion of an “international aviation system.”
“The signing comes at a time when current positive economic developments in the Philippines and Spain could open countless opportunities for the two countries, especially in the field of tourism and trade,” it said.
The two countries said they are positive the air transport agreement would help foster a healthy environment for Filipinos and Spaniards traveling from the Philippines and Spain. — Denise A. Valdez

What to see this week

4 films to see on the week of July 13-July 20, 2018

Kickboxer: Retaliation


AFTER MMA champion Kurt Sloane is kidnapped and imprisoned in Thailand, he learns that he needs to win an underground death match against a 400-pound killer enhanced with state-of the-art drugs before he can be set free. Directed by Dimitri Logothetis, the movie stars Alain Moussi, Christopher Lambert, Jean-Claude Van Damme, Mike Tyson, Sara Malakul Lane, and Jessica Jann. RogerEbert.com’s Simon Abrams writes, “Realistically, this film is the kind of reliable cinematic comfort food that only hard core fans are aware of thanks to the vagueries of the Direct-to-Video and Video-on-Demand markets. Retaliation may not be formally dazzling, or even intellectually stirring, but it’s got some personality, and it delivers a lot of basic pleasures that genre fans will go nuts for.”
MTRCB Rating: R-16

Skyscraper


A FORMER FBI Hostage Rescue Team leader and war veteran’s latest job is assessing security for skyscrapers. Then, what was supposed to be the safest building in the world starts burning, he learns that he has been framed for it, and his family is trapped inside. Directed by Rawson Marshall Thurber, the film stars Dwayne “The Rock” Johnson, Neve Campbell, Chin Han, Roland Møller, Noah Taylor, and Byron Mann. Variety’s Peter Debruge writes, “On the scale that ranges from implausibly entertaining to entertainingly implausible, Skyscraper comfortably falls toward the compulsively over-the-top end, generating thrills by straining credibility at every turn, relying on Johnson’s invaluable ability to engage the audience while defying physics, common sense, and the sheer limits of human stamina.”
MTRCB Rating: PG

Ouija House


A graduate student and her friends go a mysterious house where they end up summoning an evil spirit while playing a Ouija board. Directed by Ben Demaree, it stars Tara Reid, Mischa Barton, Dee Wallace, and Carly Schroeder.
MTRCB Rating: R-13

I Love You, Hater


ZOEY AND JOKO both apply to be the executive assistant of digital media mogul Sasha. Both challenge each other to keep up with the demands of the CEO. Directed by Giselle Andres, it stars Julia Barretto, Joshua Garcia, and Kris Aquino.
MTRCB Rating: PG

Three positive techniques for rejecting worker requests

Last week, I disapproved a request by my assistant for the purchase of a new laptop computer to replace a five-year old model. He claims the defective laptop contributes to delays and difficulties in doing his job. I told him to wait for next year as we don’t have a budget for it. In the meantime, I told him to use a desktop computer that is available for use by anyone in the department. Since then, he appears to be sending in defective reports, if not delaying submission. I’m not sure how I handled the rejection. But how do I handle similar situations in the future? — Cooling Off.
In the “Peanuts” cartoon strip, Snoopy is getting his usual dog food for a Thanksgiving Day dinner, and he is aware that everyone else in the family inside the house is having turkey. He meditates and talks to himself: “How about that?” Everyone is eating turkey tonight, but just because I’m a dog I get dog food.”
He trots away and positions himself on top of the doghouse and concludes: “Of course, it could have been worse. I could have been born a turkey.”
In the same way, you should hope and pray that it does not become worse, when he tries to send in another request for other things, just to test your limits. What if he goes on an unscheduled leave under the pretext of an emergency situation or feign an illness, among other things to make it difficult for you? How would you handle it?
Regardless of the nature and reason behind employee requests, there will be times when there is no option but to reject them.
The trouble is that almost everyone in management wants to be liked by the workers. And rejecting unreasonable or frivolous demands go with the job, which makes it difficult for anyone in people management to do just that. Of course, rejecting certain employee requests is very difficult to do.
That’s why you have to soften the “blow” and make it palatable to those concerned. Now, try the following tactics for size and adjust accordingly depending on certain situations:
One, reconcile the interests of both the workers and the organization. That should be the first thing to do. If that’s not possible, then emphasize that everyone must yield to the greater interest of the majority (other stakeholders) and the company in general. For instance, there will be time when a worker would want to reschedule his working hours to complete a post-graduate course or attend to some family concerns, like bringing a child to school.
In this case, try to be as flexible as possible in working out something. You can help the employee work out a schedule with the help of another person who can be a stand-in during such periods. Even if you fail to recruit another person to take up the slack, your genuine efforts are helpful in reducing the rejected worker’s resentment.
Two, understand carefully the letter and spirit of a specific worker’s request. Stop whatever you’re doing and look the person in the eye while listening actively. It’s easy to tune people out if you continue working on your computer, even if you tell them that you’re listening. Your body language is more than enough to betray your inattention. If this happens, the workers will readily assume that you don’t care much about them.
To establish the right environment, go to a private board room where you can show interest in a worker’s issue and offer encouragement, if needed. It would also be helpful to say something positive like “that’s very interesting” or “I understand your current situation” except that you should be careful in giving a false impression that you’re approving the request.
Three, be patient while listening to the workers’ concerns. Sometimes, people can’t readily express their message due to emotion, and take time to get to the point for some reason. The best approach is to put yourself in the position of the worker and this will readily help you concentrate on what he’s trying to say. Whatever the case, don’t make any hasty conclusions or interrupt the worker even before he completes his statement.
Treat the matter seriously, even if it appears too trivial or of no importance to you. In many cases, you must understand that minor issues are simply a cover for a much bigger or serious grievance that the employee is trying to hide because it is too sensitive or involves someone holding a higher position. It’s better to understand the context so that you can act accordingly.
In general, when you turn down a worker’s request, be as positive as possible every step of the way. And be sure that you’ve not approved a similar request in the past, which could make you look irresponsible. If necessary, don’t be rushed into making a decision. Ask for the right time to think about the request, and honor the time you promised.
ELBONOMICS: “No” means something else — next opportunity.
 
Send feedback or any workplace questions to elbonomics@gmail.com or via https:reyelbo.consulting

How PSEi member stocks performed — July 12, 2018

Here’s a quick glance at how PSEi stocks fared on Thursday, July 12, 2018.

How dependent are regions on national revenue?

How dependent are regions on national revenue?

IRA ruling need not expand deficit, petitioner claims

THE GOVERNMENT may not need to widen its fiscal deficit to comply with a Supreme Court ruling to provide local governments with their “just share” of national government revenue, the former governor who obtained the court decision said.
Hermilando I. Mandanas, a former Batangas governor and Representative for the province’s 2nd district, who also chairs the Luzon Regional Development Committee, added that the committee signed a resolution on Thursday urging the Department of Finance and the Department of Budget and Management to implement the high court’s ruling.
He said that the ruling should be implemented retroactively, with a total liability to LGUs of internal revenue allotments (IRAs) worth about P1.5 trillion from 1992 — the year when the Local Government Code was enacted — to 2018.
The law states that local governments are entitled to a 40% share of “national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year.”
For 2019, the local government share, known as the Internal Revenue Allotment (IRA) is officially reckoned at P575.5 billion but under the ruling’s interpretation should include P200 billion more.
The high court, sitting en banc, said on July 3 in a statement that it voted 10-3 in favor of including all national taxes in the calculation of IRAs such as those collected by the Bureau of Customs and the Bureau of the Treasury. It has yet to publish its final resolution.
Department of Budget and Management Secretary Benjamin E. Diokno has said that the government will likely file a motion for reconsideration through the Office of the Solicitor General because of the risk of a credit rating downgrade because the fiscal position would become “unmanageable,” with the budget deficit expanding to 6% of gross domestic product — double the 3% planned.
Mr. Mandanas said in a briefing in Mandaluyong City, “I am asking DBM to recompute because of the SC decision because it would affect definitely the budget. But the 6% deficit — that is not true.”
Mr. Mandanas said that the additional IRA should be taken from current allocations for national line agencies, and at the same time leaving these agencies’ functions to local government units (LGUs) such as conditional cash transfers, fertilizer funds and farm-to-market roads from the Agriculture department and medical services from the Health department, among others.
“Just transfer the funds. Take that out from the national line agencies. The funds that are really for basic services that should be done by locally, give it to the local government,” Mr. Mandanas said.
“It would increase the amount of money so they will be able to perform their mandated basic services. We do not need to borrow money. We will just implement the law,” he added.
He said that the unallocated shares from previous years could be paid in tranches for up to 20 years, but added that the mode of payment still depends on the SC’s final decision.
“My suggestion is you cannot pay it one go. So the back pay will be paid in maybe five, 10, or 20 years. That can be subject to negotiations.”
Mr. Mandanas said that providing more funds to LGUs will be “more transparent” and “more efficient” as the LGUs themselves know their needs more than the national government.
“Our credit rating will even go up because we will be able to spend our money more efficiently. We would be able to spend more, infrastructure projects can even built faster. Barangays will build the roads they need. It will not damage the national government.”
The National Economic and Development Authority Assistant Secretary Mercedita A. Sombilla has said that the proposal is “rational,” adding that “their demands are valid… I really hope that things are going in a positive direction, which is really good for the regions and the LGUs.”
Many LGUs depend on income from the national government which has stunted the development of their ability to raise their own funds via real property and business taxes, among others.
Mr. Mandanas countered by saying: “The basic principle is you would just devolve the funds that they are able to spend. Like fertilizers. The soil conditions are different in the towns and municipalities.”
Finance Secretary Carlos G. Dominguez III said the government will await the formal release of the ruling before taking any action.
“As of [Wednesday], we haven’t yet received the decision from the SC and will comment after we get a chance to study it closely and evaluate its implications,” Mr. Dominguez told reporters yesterday in a mobile phone message. — Elijah Joseph C. Tubayan

Marawi rehab moving on to second contractor

THE Task Force Bangon Marawi (TFBM) said Thursday that the groundbreaking for the rehabilitation of Marawi City’s most affected area (MAA) has been reset for August following “unsuccessful negotiations” with the Bagong Marawi Consortium (BMC) last month.
“We had an unsuccessful negotiation with the Bagong Marawi Consortium, and now we are in the process of negotiating with the next in line, which is Power China. With regard to the details of the ongoing negotiations, I was informed that the groundbreaking is reset for the third or last week of August,” TFBM and Housing and Urban Development Coordinating Council (HUDCC) chairperson Eduardo D. del Rosario said in a briefing at the Palace.
The delay in the selection of the developer, according to Mr. del Rosario, will “not affect” the government’s “target date of completion, which is at the last quarter of 2021.”
HUDCC Secretary General Falconi Ace Millar said Power China has yet to tap some local companies “to meet the 75-25” requirement, referring to the foreign and local mix of participants. “So, definitely, it will not be solely undertaken by Power China,” he said.
As for BMC, Mr. Millar said it failed to satisfy requirements “with regard to financial, technical, and legal aspects.”
“For example, with regard to legal compliance, some of the documents were not translated into English. We had a hard time reviewing these documents, which were submitted in Chinese. With regard to financial capacity, we required them to comply with the equity requirement or to show proof of set-aside deposits, which they have failed to comply with,” Mr. Millar said.
Mr. Del Rosario said that in terms of the timetable, “We are on time. We programed the rehabilitation in such a way that we will be able to complete [it] not later than December of 2021. We are on time.”
Mr. Del Rosario added that President Rodrigo R. Duterte has not expressed any “displeasure” over the progress of the rehabilitation. “The President is very appreciative when things go right, and he has always said that the government has acted fast in Marawi. He has also said that had he assigned other people to the job we might still be building transitory shelters.” — Arjay L. Balinbin

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