Gov’t borrows P11.9B via Treasury bills

July 3, 2018 | 12:04 am

By Karl Angelo N. Vidal, Reporter
THE GOVERNMENT opted for a partial award of the Treasury bills (T-bills) on offer yesterday as yields on the longer tenors rose, with the market pricing in their expectations on inflation and of another rate hike from the central bank.
The Bureau of the Treasury borrowed only P11.9 billion during its T-bills auction on Monday, falling short of the P15 billion it intended to borrow.
Total tenders reached P26.5 billion during the auction yesterday, climbing from the P20.3 billion tallied during the previous offer and almost two times the total offer volume.
Broken down, the government awarded P4 billion as planned in the 91-day tenor, with total bids amounting to P14.438 billion. The strong demand caused the average rate to slide by eight basis points to 3.404% from last week’s 3.484%.
Meanwhile, the Treasury made a partial award of the 182-day papers, raising just P3.04 billion out of the P5-billion offering. Total tenders amounted to P5.27 billion, while the average yield fetched under the tenor rose 6.4 basis points to 3.937% from the 3.873% tallied during the previous auction.
The government likewise borrowed just P4.029 billion worth of 364-day debt papers out of its P6-billion program as the average rate picked up to 4.566%, climbing 13.7 basis points from the 4.429% logged a week ago. Total tenders reached P6.804 billion.
At the secondary market prior to the auction, three-month and six-month papers were quoted at 3.7714% and 4.0179%, while one-year T-bills fetched a 4.6317% yield.
At the close of the trading session, the rate of the 91-day T-bill was unchanged, while the 182-day and 364-day papers rallied to fetch lower yields of 3.765% and 4.4146%, respectively.
National Treasurer Rosalia V. de Leon said the Treasury saw appetite from market players despite the higher bids for the six-month and one-year T-bills.
“The auction relatively is still oversubscribed… There is still appetite and we see liquidity in the domestic market,” Ms. De Leon told reporters on Monday.
She added that rates of the longer tenors picked up during the auction as banks and other financial institutions priced in their inflation expectations and the possibility of another policy rate hike from the Bangko Sentral ng Pilipinas (BSP).
“Except for the 91-day, both the 182- and 364-day [papers] moved up and that’s because of the median inflation forecast of 4.7%, and also they are expecting the BSP to hike again because of the depreciating peso.”
A BusinessWorld poll among 12 economists yielded a median inflation forecast of 4.7% for the month of June. If realized, the inflation print will accelerate from May’s 4.6% figure to a fresh five-year high.
This consensus also falls in the middle of the 4.3-5.1% inflation estimate given by the BSP on Friday.
Analysts said inflation likely picked up from the previous month due to higher food and oil prices, although this was offset by easing electricity rates.
Meanwhile, the peso dipped to a fresh twelve-year low on Thursday, closing the session at P53.515 against the greenback, due to renewed trade war concerns between the United States and its main trade partners.
“[Market players] are putting cushion in terms of the yields for this two tenors,” Ms. De Leon noted.
Meanwhile, a bond trader said the result of Monday’s auction continued to be within expectations, although the 182- and 364-day papers remained under pressure.
“Despite potentially lower inflation in the near-term, risks to supply given that the government continues with its thrust for infrastructure and socioeconomic program spending. That is going to continue to threaten supply — meaning higher deficit equals higher supply,” the bond trader said.
During its meeting yesterday, the Development Budget Coordination Committee programmed its fiscal deficit in 2019 at 3.2% of the country’s gross domestic product, wider than the 3% ceiling this year as the government seeks to “eradicate underspending.”
“This may continue to pressure local bond supply,” the bond trader added.
The government is set to borrow P300 billion from the domestic market this quarter through auctions of securities, offering P195 billion in T-bills and another P105 billion in Treasury bonds.
Aside from this, plans for another dollar bond float as well as yen-denominated “samurai” papers are also being finalized.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit capped at 3% of the country’s gross domestic product.

Singapore says home prices rise strong for 2nd straight quarter

July 3, 2018 | 12:04 am

SINGAPORE private home prices posted a second straight quarter of strong gains as the property market extended its recovery from a four-year slump.
An index tracking private residential prices jumped 3.4% in the three months ended June 30, according to a flash estimate from the Urban Redevelopment Authority. That builds on a 3.9% gain in the first quarter, which was the biggest since the second quarter of 2010.
The rebound in home prices has prompted aggressive land bids from developers as buyers shrug off cooling measures ranging from additional taxes to limits on loans. The government in February raised taxes on home purchases exceeding S$1 million ($764,000) as collective apartment sales reached levels the central bank described as exuberant.
Much of the gains are being driven by so-called en-bloc sales, where a group of owners band together to sell entire apartment buildings, according to Cushman & Wakefield, Inc.
“There is a lot of liquidity in the market right now,” said Christine Li, a senior director of research at Cushman & Wakefield. “Money is coming back to owners who participated in collective sales. This recycling of capital is pushing up prices.”
Singapore home sales jumped to the highest in nine months in May as developers sold 1,121 units. — Bloomberg

Michael Jackson returns posthumously on Drake album

July 3, 2018 | 12:04 am

IN THIS file photo taken on April 24, 2002, singer Michael Jackson performs during the Democratic National Committee benefit concert, *A Night at the Apollo*, in New York. Michael Jackson returned posthumously on June 29 with new music as the late King of Pop starred on the new album by Drake. — *AFP*

NEW YORK — Nearly a decade after his death, Michael Jackson is out with new music in a guest appearance on the new album by Drake.
The late King of Pop appears in a song on Scorpion, the fifth studio album by the Toronto hip-hop star who pulled another surprise by using the release to come clean about his secret child.
True to form for Drake, whose sensibility for catchy beats has made him one of the top-selling artists of recent years, the 25-track album that came out Friday sprawls defiantly, as if resisting the traditional confines of records.
Yet Drake loosely divides Scorpion in two — a first “side” in which he hones his rap skills and a second, more unexpected half in which Drake branches further into pop.
“Don’t Matter To Me,” the song with Jackson, belongs firmly to Drake’s pop mode. The 31-year-old proves his bona fides as a singer, his piercing rap delivery giving way to a full-textured silkiness that complements Jackson’s higher ranges.
A dreamy mid-tempo track driven by a synthesized R&B bass, “Don’t Matter To Me” is in line with the adult output of Jackson, whose distinct voice is heard on the chorus.
“All of a sudden you say you don’t want me no more / All of a sudden you say that I closed the door / It don’t matter to me,” Jackson sings.
Drake revealed nothing about the song’s genesis.
But Jackson is known to have left a series of unfinished tracks when he died in 2009. A previous posthumous duet, “Love Never Felt So Good,” came out in 2014 between Jackson and pop star Justin Timberlake.
Like “Don’t Matter To Me,” the Timberlake collaboration was credited in part to the legendary crooner Paul Anka.
Jackson had been working on an album of duets with Anka, the voice behind such classic pop hits as “Put Your Head on My Shoulder,” in 1983.
But the project fell by the wayside as the former child star was propelled to fortune with Thriller, which went on to become the best-selling album of all time.
Drake, in a rare interview last year, described Jackson as a longtime model and voiced dismay at being pigeon-holed as a rapper.
The song coincidentally comes out little more than a day after the death of Joe Jackson, the King of Pop’s father and manager who guided his children’s careers but was ruthless in his discipline.
POLITICS AND A SECRET CHILD
Jackson is not the only special guest on Scorpion. Rap mega-star Jay-Z lends rhymes on “Talk Up” that denounce President Donald Trump — a rare political display for a song by Drake, who while making clear his disdain for Trump has largely preferred apolitical, crowd-pleasing rhythms.
Drake incorporates his recent input into Scorpion — “God’s Plan,” an infectious hip-hop track that has spent the longest stretch on the top of the US singles chart this year, and “Nice For What,” a fast-driving dip into New Orleans’ bounce scene.
But while Scorpion is full of feel-good vibes — “Ratchet Happy Birthday” seems destined to be played at many a boisterous party — Drake closes on a serious note as he acknowledges he is a father.
Drake admits the substance of a diss track in May by Pusha T who said that Drake had a son with Sophie Brussaux, a French former pornographic actress.
“I wasn’t hiding my kid from the world / I was hiding the world from my kid,” Drake raps in “Emotionless,” which samples Mariah Carey’s “Emotions.”
Later on the album, Drake hints that he has only seen his child once and is embarrassed he is following the footsteps of his divorced parents.
“Always promised the family unit / I wanted it to be different because I’ve been through it / But this is the harsh truth now.” — AFP

Calmar Land targets affordable housing market

July 3, 2018 | 12:03 am

CALMAR Land Development Corp. expects to completely sell out its affordable housing project in Pila, Laguna by 2019.
In a statement, Calmar Land said its Promesa Pila project offers two house models — a 44-square meter (sq.m.) townhouse and a 84-square meter (sq.m.) duplex. Prices of a Promesa home ranges from P900,000 to P1.5 million, and can be availed through Pag-IBIG or bank financing.
Promesa Pila will have a clubhouse, an open-air recreational area, playground, and a jogging path. It will also have a guardhouse and a perimeter fence to ensure the safety of residents.
“The Promesa brand is our way of helping independent individuals, starting or small families fulfill their dreams of owning their own home. Its affordability makes it a worthwhile legacy to impart to their families in generations to come. As what Promesa stands for, it is a promise to make every breadwinner’s dream to provide a home for their family become a reality,” Calmar Land Chief Operating Officer Raymond Alonso said.
Calmar Land is planning another project under the Promesa brand in Quezon province.

PHL banks to favor digitalization over mergers or acquisitions for expansion

July 3, 2018 | 12:03 am

By Melissa Luz T. Lopez, Senior Reporter
PHILIPPINE BANKS are less likely to explore mergers as they now favor digitalization in their bid to expand their client base, a credit analyst said.
Simon Chen, senior analyst at Moody’s Investors Service, said industry players have been setting sights on investing in digital technology instead of bank acquisitions.
“The current thinking we are seeing now across the banks is that rather than merging with another bank and inherit problems, it might be a lot more cost efficient to rely on digitization to scale up the business and grow a lot faster,” Mr. Chen said in a media briefing held last week in Makati City.
Talks to buy and merge smaller banks have proven to be “tricky” given the laborious task of conducting due diligence and resolving acquisition costs, the credit analyst said, versus the “high aspirations” set by the surviving bank in terms of a broader network.
Like in other countries, Mr. Chen said some consolidation plans have fallen apart due to a number of factors that stand in the way for synergies between lenders, while other deals take several years to carry out.

The Bangko Sentral ng Pilipinas together with state agencies are offering a Consolidation Program for Rural Banks until 2019 as they seek to promote mergers among small lenders. Since 2015, the program targets to fortify the capital and asset base of these small banks via a merger to make them more financially sound.
The regulator has been evaluating proposals from three groups of rural lenders since 2017, but none have come into fruition so far.
Compared to integration strategies, Mr. Chen said a cost-benefit analysis argues for organic growth by mounting bank services onto the digital space.
“More banks are thinking that it might be more cost efficient or more in line with the thinking that to grow forward, it is to rely on digital and to scale up the business rather than to acquire another problematic bank and digest the issues over a longer period of time,” Mr. Chen said.
He added that there is “a lot of room for growth” for digital banking services, especially with the millennial market in the Philippines coupled with far-flung areas which are deemed unreachable via brick-and-mortar branches.
Mr. Chen has said that while near-term gains from using digital channels will be “muted,” the longer-term benefits will eventually pay off for banks.
Central bank officials are encouraging banks to tap digital solutions in order to widen their reach and get more Filipinos to use formal financial platforms. Studies show that gross domestic product could increase by more than 14% if the financial inclusion gap was closed in the Philippines.

PLDT works to comply with DoLE order; no contracts terminated

July 3, 2018 | 12:03 am

PLDT, Inc. on Monday denied it had terminated service contracts with agencies in order to avoid complying with the Department of Labor and Employment’s (DoLE) order to regularize its contractual workers.
“PLDT did not terminate these service contracts,” PLDT said in a statement, in response to a labor group’s claims that the telecommunications giant ended the service contracts with several providers.
The company has filed a petition for certiorari before the Court of Appeals (CA), questioning the legality and validity of the DoLE order, saying that aspects of the order are “inconsistent with applicable law, jurisprudence, and the documentary and testimonial evidence.”
PLDT said 23 affected service contractors have also questioned the decision before the CA.
In May, DoLE denied PLDT’s appeal regarding the agency’s order for PLDT to regularize over 7,000 of its contractual workers, while the contractors were told to compensate the employees in monetary claims. It also ordered 38 service contract providers of PLDT to cease and desist from providing services to the telecommunications companies.
“While PLDT and the affected contractors await judicial relief from the CA, PLDT continues to carry out an orderly and effective intake process in response to the DoLE Order. This process involves the proper identification of individuals named in the DoLE Order and establishing their respective qualifications and fitness for work,” the company said.
PLDT said it is working to ensure its operations will not be affected by the DoLE order.
“The Company is putting in place various interim and long-term measures to continue providing quality services to its customers and the public,” it said.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

‘Bowie Bonds’ creator sues singer Ed Sheeran for copying Marvin Gaye hit

July 3, 2018 | 12:03 am

NEW YORK — English singer and songwriter Ed Sheeran was sued on Thursday for at least $100 million for allegedly copying large parts of Marvin Gaye’s classic “Let’s Get It On” for his smash hit “Thinking Out Loud.”
The lawsuit was filed by a company owned by David Pullman, an investment banker who in 1997 arranged the pioneering $55 million sale of “Bowie Bonds,” which made David Bowie the first musician to sell bonds backed by royalties from his catalog.
According to the complaint filed in Manhattan federal court, “Thinking Out Loud,” which peaked at No. 2 on the Billboard Hot 100 in February 2015, copies the “melody, rhythms, harmonies, drums, bass line, backing chorus, tempo, syncopation and looping” of “Let’s Get It On,” which hit No. 1 in September 1973.
Other defendants include Sony/ATV Music Publishing and the Atlantic record label.
Representatives for Sheeran and Atlantic did not immediately respond to requests for comment. Sony/ATV spokesman Paul Williams declined to comment.
Those defendants have denied any infringement in a related lawsuit filed by heirs of the late producer Ed Townsend, who co-wrote “Let’s Get It On” with Gaye. Pullman’s company, Structured Asset Sales LLC, owns one-third of Townsend’s estate.
Sheeran, 27, has faced infringement claims over other songs, including “Photograph” and “Shape of You.”
Gaye was fatally shot by his father in 1984 at age 44.
On March 21, a federal appeals court upheld a $5.3 million judgment for Gaye’s family against Robin Thicke and Pharrell Williams for copying from another of his songs, 1977’s “Got to Give It Up,” for their 2013 smash “Blurred Lines.”
Pullman, 56, invests in music, entertainment and other intellectual property assets, and securitizes some of them.
In an interview, Pullman said people interviewed for news coverage about “Blurred Lines” noted similarities between “Let’s Get It On” and “Thinking Out Loud.”
He said three musicologists compared the songs independently and found them “substantially or strikingly similar,” a legal standard used to determine infringement.
“We wanted to do everything right in terms of the detail,” he said.
Other recording artists to face copyright claims in recent years have included Miley Cyrus, Drake, Kendrick Lamar, Led Zeppelin, and Madonna.
While many cases are settled or dismissed, Pullman said artists should not wait until after their songs become hits to get necessary permissions.
“It’s sort of ‘catch-me-if-you-can,’ after the fact,” he said.
The case is Structured Asset Sales LLC v Sheeran et al, U.S. District Court, Southern District of New York, No. 18-05839. — Reuters

Eton Properties introduces leasing program

July 3, 2018 | 12:02 am

ETON Properties Management Corp. has a new leasing program called Dwellings by Eton which helps people find apartments to rent. The program offers hundreds of properties in central locations, such as Makati, Ortigas and Manila.
In Makati, units are available at Eton Residences Greenbelt, Eton Parkview Greenbelt, Eton Tower Makati, and Belton Place Makati. There are also units for rent offered at Eton Emerald Lofts in Ortigas, 8 Adriatico, Eton Baypark Manila, and One Archers Place in Manila.
“Notably, professional leasing staff of Dwellings by Eton offer personalized service that will help ensure you get the most out of your living space depending on your preference and budget,” the company said in a statement.

P&A Grant Thornton names James Araullo as new partner

July 3, 2018 | 12:02 am

James Araullo, P&A Grant Thornton partner

P&A GRANT Thornton, one of the leading audit, tax, advisory, and outsourcing firms in the Philippines, has named James Araullo as partner.
Mr. Araullo joined the firm’s audit and assurance division on July 1.
“The elevation to the partnership is a well-earned recognition of James’ outstanding performance throughout his career at P&A Grant Thornton and, more importantly, of his capability to contribute to the continued growth and development of the Firm,” Marivic Españo, chairperson and CEO of P&A Grant Thornton, was quoted as saying in a statement.
Mr. Araullo joined the firm in 2004, and has been involved in auditing local and multinational companies in various industries including real estate, construction, manufacturing, services, retail and distribution, nonprofit organizations, and business process outsourcing.
An accountancy graduate of San Beda College, Mr. Araullo has been involved in financial due diligence audit, review engagements, and securities offering services.

Bank of Makati posts P507-M income in Q1

July 3, 2018 | 12:02 am

BANK of Makati earned P507 million in the first quarter. — *FACEBOOK.COM/BMIOFFICALPAGE*

BANK OF MAKATI (A Savings Bank), Inc. (BMI) netted P507 million in the first three months of the year buoyed by loans for motorcycles and by small businesses.
In a statement on Monday, the thrift bank said it booked a P507.062-million net income in the first quarter.
BMI President Luis M. Chua said motorcycle loans supported the bank’s income “growth” during the January-March period.
“Motorcycle loans continued to be a main driver of our growth during the first quarter of the year,” Mr. Chua was quoted as saying in the statement.
“At the same time, more entrepreneurs have availed of our financing products designed to help micro, small and medium enterprises grow and succeed.”
BMI booked P1.636 billion in interest income during the said period, of which loans and receivables accounted for P1.592 billion.
As of March, BMI posted about P22.942 billion in net loans and receivables.
Following its first-quarter performance, BMI said it is set to hit its P1.725-billion profit guidance this year.
“Our first quarter performance puts us on track of achieving our target of growing exponentially to serve more Filipino savers and entrepreneurs,” Mr. Chua said.
“We are working to maintain the momentum, which could allow us to breach the P2-billion mark.”
Overall, BMI maintained a “strong” balance sheet in the first quarter of the year, with its total assets amounting to P31.341 billion, 3% higher than the P30.4 billion logged in the fourth quarter of the year.
Meanwhile, its non-performing loans stood at 8.58%, while its capital adequacy ratio was at 18.29%. BMI’s return on equity was at 29.35% during the period.
Latest data from the Bangko Sentral ng Pilipinas showed BMI was the ninth largest thrift bank in the country in asset terms at end-March. It was also the third-biggest standalone thrift lender.
Currently, the bank has 62 branches nationwide, catering mostly to Filipino savers, motorcycle buyers and small businesses. Its network is boosted by the 703 branches of Motortrade which serve as collection agents.
BMI said in March it wants to open “about 40” branch-lite offices this year to tap the unbanked and underserved Filipinos in rural areas. — K.A.N. Vidal

Slain rapper XXXTentacion returns to fight old self in posthumous video

July 3, 2018 | 12:02 am

NEW YORK — XXXTentacion, the rising rap star whose short, violent life was cut short in a shooting, has returned in an eerie posthumous video in which he battles his old self.
The video for “SAD!” quickly became the most trending item on YouTube, generating 28 million views in one day.
The six-minute piece shows a sullen XXXTentacion attending his own funeral where the 20-year-old’s body leaps out of the casket, only to be beaten up in a street fight by his living alter ego.
“SAD!” — like much of XXXTentacion’s work filled with brutally open and dark verse about his suicidal thoughts — is interspersed by a dialogue with a grim black-robed character in between the Grim Reaper and a Star Wars villain.
Subtitles on the video inform the viewer that by watching, “You are subjected to a segmented piece of my creative aura and wishes.”
In a biblical-like passage, it reads: “Here is my demand — you will spread love throughout the world, praise and joy unto my name and change the overall cycle of energy we are digesting.”
The video, described as “written and creative directed” by XXXTentacion, prompted conspiracy theories on the internet saying that his death was all an artistic hoax.
However, authorities in Florida confirmed his death in the shooting on June 18 outside a motorcycle store and have made one arrest. XXXTentacion, whose real name was Jahseh Ofrey, was mourned in an open-casket funeral.
“SAD!” shot up after his death to top the Billboard Hot 100, marking the first posthumous number one for a dead lead artist on the benchmark US singles chart since “Mo Money Mo Problems” by slain rapper The Notorious B.I.G. in 1997.
XXXTentacion had hit number one on the album chart this year with “?” but his success has proven controversial due to his history of violence.
He had been awaiting trial on charges of beating his former girlfriend while she was pregnant. — AFP

Amaia Land highlights projects’ accessibility

July 3, 2018 | 12:01 am

AMAIA Land said it ensures its residential developments are completely accessible and promote connectivity, as part of its C.A.R.E.S. initiative (Complete Accessibility and Connectivity, Right-sized community, Eco-efficiency and Structural stability).
“With Filipino families and professionals opting to buy homes that are close to key establishments and entryways, Amaia builds its properties near major roads, growth areas, and transport hubs. This minimizes time spent on the road, allowing homeowners to reduce fuel consumption and cut down on their carbon footprint,” the wholly owned subsidiary of Ayala Land, Inc. (ALI) said in a statement.
For its Amaia Scapes communities, the company has added pedestrian and cyclist-friendly facilities such as waiting sheds, shuttles, biking lanes, and bike racks.
Amaia Skies and Amaia Steps, its high-rise and mid-rise developments, also have retail arcades to service homeowners.