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U2 rocks out as it readies post-Trump album

NEW YORK – U2 on Wednesday rocked out on a guitar-charging first track of its upcoming album, which the Irish rock legends had largely finished last year but revisited following Donald Trump’s shock election victory.

In the first taste of its upcoming album Songs of Experience, the band released “The Blackout,” a rock number with echoes of early-1990s Achtung Baby era U2 with a dominant bass line pushing The Edge’s heavily distorted guitar.

U2 released the song through a “video” of a live performance – which, true to the song’s title, is a black screen. U2 earlier hinted at the song by sending fan club members anonymous letters in the mail of silhouetted figures, which arrived when the United States was experiencing a historic solar eclipse on Aug. 21.

The track, however, will not be considered the lead single from the album. That will be “You’re the Best Thing About Me,” which U2 said in social media posts would come out Sept. 6 along with more details on the album.

Songs of Experience – its title a reference to a collection of poems by William Blake – is a sequel to 2014’s Songs of Innocence, which reflected heavily on frontman Bono’s childhood in suburban Dublin.

The latest album is set for a more conventional release after U2 acknowledged its strategy backfired for Songs of Innocence.

Apple, as part of a product promotion, transmitted the album for free last year to the world’s half-billion iTunes accounts – whether users wanted to hear U2 or not.

A NEW OUTLOOK AFTER TRUMP
The band, known for its human rights advocacy, said it completed most of Songs of Experience last year but decided to return to work after Trump stunned the world by winning the White House.

“Most of it was written in the early part of 2016, and now, as I think you’d agree, the world is a different place,” The Edge told Rolling Stone earlier this year.

In a more recent interview with Apple’s Beats 1 radio, Bono voiced dismay at Trump’s push to build a wall on the border with Mexico, noting that even fellow Republican president Ronald Reagan embraced immigration.

Bono said that the new album had a number of songs conceived as letters – including one, “American Soul,” addressed to the United States and pointing to the country’s historic welcome of foreigners.

“We have all got a stake in the American idea. We want it to succeed,” Bono said.

“It’s a beautiful idea and that’s why we get worked up about it,” said Bono, whose best-known songs include “Pride (In the Name of Love” about slain civil rights icon Martin Luther King, Jr.

Bono has said that U2 also needed time to cut down on the size of Songs of Experience and wanted to return to the studio to fine-tune the music.

U2 is releasing the new songs as the band tours North America to mark the 30th anniversary of The Joshua Tree, generally considered its definitive album.

The Joshua Tree reached into the roots of both Irish and American music as Bono took aim at US support for Latin American dictatorships under Reagan. – AFP

Liquidity, credit growth pick up in July

By Melissa Luz T. Lopez,
Senior Reporter

MORE MONEY circulated in the economy in July as bank lending grew by a fifth, the Bangko Sentral ng Pilipinas (BSP) said yesterday.

Domestic liquidity or M3, which is the broadest measure of money in an economy, rose by 13.5% that month to hit P9.969 trillion, outpacing an upward-revised climb of 13.3% in June and the 13.4% logged a year ago.

Month on month, money supply inched up by 1.4%.

Strong credit demand continued to fuel liquidity growth, which is also the fastest in over a year.

Domestic claims picked up by 15.7%, rising from a 15.4% increase last June on the back of higher borrowings incurred by private companies. The government also held more cash at its disposal with a 13% growth in liquidity as it borrowed more funds during the period, well ahead of its aggressive spending plans.

On the other hand, growth in net foreign assets expressed in peso terms slowed to 2.7%, coming from 2.8% a month ago. Still, the increase was supported by dollar inflows coming from remittances sent by overseas Filipino workers, business process outsourcing receipts, and foreign portfolio investments, the BSP said.

Banks also held a bigger stash of net foreign assets as they handed out more loans and invested more on debt papers, as well as in subsidiary firms.

“The growth in M3 remains in line with the BSP’s prevailing outlook for inflation and economic activity,” the central bank said in a statement.

Central bank officials allayed fears on the rapid liquidity and credit growth in the Philippines, noting that such increases simply reflect the sustained pickup in economic activity as well as the “higher potential output” of the economy.

LENDING SURGES
Philippine banks likewise extended more loans in July to post the fastest growth in four months.

Bank lending surged by 19.7% from a year ago, faster than the 19% logged the previous month. It is also the quickest pace seen since a 20.2% growth recorded in March.

Including the reverse repurchase agreements held by the banks, total credit picked up by 18.7% from 18.3% a month prior.

Some 88.4% of the bank loans went to production activities, which in turn grew by 18.9% that month. Borrowers engaged in the information and communication sector again saw the biggest rise in lending at 38.7%; followed by bigger credits extended to electricity, gas, steam and airconditioning supply firms that saw a 27.1% climb.

Other sectors which received bigger loan amounts are real estate (18.9%); wholesale and retail trade, repair of motor vehicles and motorcycles (15.1%); and manufacturing (12.3%).

Consumer loans also kept growing in July to pick up by 22.3%, steadying from a 22.5% increase in June led by higher car mortgages, credit card loans, and salary-based borrowings.

The BSP said it will keep tabs on domestic credit and money supply conditions to ensure that commodity prices and the financial system will remain stable, which in turn will support economic growth.

The central bank decided to trim the weekly auction volumes for the term deposit facility this September as they observed that banks were keen on using their excess funds to grant more loans rather than place it on the low-yielding instruments.

More women needed in Philippine corporate boards

By Victor V. Saulon, Sub-Editor

WOMEN LEADERS called on Philippine companies to include more females in their boards, calling the disparity as more of a loss for companies as studies have shown greater profitability for those that have embraced diversity.

Ma. Aurora D. Geotina-Garcia, co-chair of the ASEAN Women Entrepreneurs Network (AWEN), the Philippines still needs more work in increasing female representation in corporate boards, despite the country being widely recognized as having some of the region’s most empowered women in business.

“There are two schools of thought. Should we require it or should we just encourage it? What has happened in the Philippines, if you look at the revised Corporate Governance Code of last year, they do not [it] require yet… unlike in other countries [where] 30% of the board are women,” she said.

“But it does say that if you’re not compliant, you explain why,” she added, calling the regulation as remaining “soft.”

Despite women comprising about half of the population of the Philippines, and even the Association of Southeast Asian Nations (ASEAN), only about 40% of them are in the labor force, said Ms. Geotina-Garcia, former chair of the Bases Conversion and Development Authority.

“If you go to Malaysia, there is a requirement that 30% of [the board of] publicly listed corporations should be women,” she added.

Ms. Geotina-Garcia said that as a fellow of the Institute of Corporate Directors (ICD), she has made concrete steps in introducing change in the corporate world.

“Since I am female and I have sat in both government and private boards, we are going to undertake a program to train more women to become board members,” she said.

As an initial step, ICD is conducting a survey that seeks to answer why are few women in corporate boards, she said. The survey will also answer whether there are indeed few women who are qualified, which she said she does not agree with.

“Or is it a question that men don’t want women in boards for whatever reason they may have?” Ms. Geotina-Garcia said. “From that survey we will then develop training courses to train women to become board members.”

Ms. Geotina-Garcia, who is also a member of Women Corporate Directors Organization of the Philippines, said the group seeks to increase the representation of women in publicly listed companies, which today is only 13% for the Philippines.

She said she is willing to give the “soft approach” a chance even if affirmative action gives better or faster results. But if at some point the target participation is not achieved, she would support a legislation in this direction.

However, Ms. Geotina-Garcia noted one of the dangers of affirmative action in Asia is that many of the businesses are family-owned, possibly resulting in a token appointment for the owner’s wife or daughter.

“The issue really is, we should put women who are competent and who are able to contribute to the strategic direction of businesses,” she said.

Patricia U. Juan, who also chairs AWEN, said women’s participation has proven to be positive in private companies, especially in raising profitability.

“Most of those who are profitable have diverse boards. We encourage women to step up and learn about governance,” Ms. Juan said. “I think legislation is good because sometimes that’s the only way they will comply.”

However, even without affirmative action, Ms. Juan said a number of multilateral agencies have set “scorecards” for diversity as a criteria for granting loans.

Thursday’s business conference, a partnership between AWEN, the Philippine Commission on Women, the Department of Trade and Industry, gathered women business leaders and delegates from the public and private sector in ASEAN member states.

More than 600 participants took part in the conference that featured seven panel discussions tackling topics on the economic empowerment of women, including gender equality, inclusive business and innovation

Nora K. Terrado, undersecretary of the Department of Trade and Industry, said the participants in the conference “are calling for stronger policy support and more initiatives for economic empowerment of women” in the region.

NCAA All-Star Game pitting Heroes, Saints today

SEASON 93 of the National Collegiate Athletic Association (NCAA) takes a break from the regular wars as it holds the annual All-Star Game today at the FilOil Flying V Center in San Juan City.

NCAA All-Star Game pitting Heroes, Saints today
CJ Perez of the league-leading Lyceum Pirates banners the Heroes against the Saints in the NCAA Season 93 All-Star Game today at the FilOil Flying V Centre in San Juan City. — ALVIN S. GO

Deviating from the usual East versus West format of all-star games past, this year’s edition of the mid-season classic of the NCAA will pit Heroes and Saints against one another.

The Heroes will be composed of players from the league-leading Lyceum Pirates, Arellano Chiefs, Emilio Aguinaldo College (EAC) Generals, Jose Rizal University (JRU) Heavy Bombers and Mapua Cardinals.

For the Saints it will be those from defending champions San Beda Red Lions, College of St. Benilde Blazers, Letran Knights, Perpetual Help Altas and San Sebastian Stags.

Lyceum’s top man CJ Perez banners the Heroes team along with teammates Jesper Ayaay and Mike Nzeusseu.

They will be joined by Kent Salado, Lervin Flores and Allen Enriquez of Arellano, Teytey Teodoro, Ervin Grospe and Jed Mendoza of JRU, Christian Buñag, JB Raflores and Laurenz Victoria of Mapua and Sidney Onwubere, Francis Musayac and Jerome Garcia of EAC.

Coach of the Heroes is the Pirates’ Topex Robinson.

Team Saints, on the other hand, will be led by San Beda’s Robert Bolick, Jayvee Mocon and Davon Potts.

Joining forces with them are Rey Nambatac, JP Calvo and Bong Quinto of Letran, Alvin Baetiong, Kevin Baytan and Ian Valdez of San Sebastian, JJ Domingo, Edward Dixon and Gerard Castor of St. Benilde, and GJ Ylagan, Gab Dagangon and Prince Eze of Perpetual Help.

Handling them is the Lions’ Boyet Fernandez.

Preceding the All-Star Game is a number of side events, namely the Slam Dunk Contest, Three-point Shootout, Skills Challenge and Shooting Stars.

TV telecast of the festivities begin at 1 p.m.

PEREZ LEADS MVP RACE
Meanwhile, at the halfway mark of the ongoing season of the country’s longest-standing collegiate league, Perez of Lyceum is leading the most valuable player race.

Apart from leading the Pirates to an unblemished record of 9-0, the comebacking NCAA player Perez has been posting solid numbers of 18.6 points (league-high), 5.6 rebounds, 3.2 assists and 1.6 steals.

Crowding him in the race for the top individual prize are San Beda’s Bolick and Mocon.

The two Lions players have also been steady for their team, which is currently second running with an 8-1 record, with Bolick good for 13.6 points, 4.7 rebounds and 4.7 assists (league-high), and Mocon do-it-all with norms of 12 points, 9.9 boards and 3.6 dimes.

Despite leading the MVP race, Perez, who plans to turn professional after the season, said his focus is winning for Lyceum its first-ever NCAA title.

“For me it’s more of helping the team win a championship. If along the way I win the MVP then it would just be a bonus,” said Perez.

Perez and the Pirates hope to sustain their top form when the second round of the classification phase resumes after the All-Star break. — Michael Angelo S. Murillo

Senate finance committee approves DoJ 2018 budget

THE Senate Committee on Finance has approved the P17 billion budget of the Department of Justice (DoJ) after postponing deliberations on the department’s funding on Aug. 17.

Aguirre
Justice Secretary Vitaliano Aguirre attends the Senate hearing on the investigation of the death of Kian delos Santos in this photo taken on Aug. 24, 2017. SENATE PRIB/Alex Nueva España and Albert Calvelo

The process was almost derailed when Sen. Antonio F. Trillanes threatened to defer the budget approval due to the previous statements made by the DoJ Secretary Vitaliano N. Aguirre.

During the hearing, Mr. Trillanes showed the committee media reports quoting Mr. Aguirre allegedly linking Mr. Trillanes to the threat on the life of a New Bilibid Prison inmate caught up in the investigation into  Sen. Leila M. De Lima.

In addition, Sen. Franklin M. Drilon questioned Mr. Aguirre on statements he allegedly made in relation to the Liberal Party and the parents of slain 17-year old student Kian Lloyd Delos Santos.

Mr. Aguirre denied making the statement.

Chair of the Senate Committee on Finance Senator Loren B. Legarda reminded Mr. Trillanes that “this is a budget hearing.”

She also said that most of the issues that Mr. Trillanes presented were tackled during Mr. Aguirre’s confirmation as Secretary of the DoJ during the Commission on Appointments deliberations.

“But this is in relation to the performance by the Department of Justice and by the Secretary,” Mr. Trillanes said.

Ms. Legarda then reminded Mr. Aguirre to be “more responsible” with his statements before finally approving the DoJ budget.

The P17.276 billion budget is 0.46% of the proposed national budget. — Mario M. Banzon

Iloilo City mayor: ‘I didn’t become rich because of politics’

MAYOR JED Patrick E. Mabilog of Iloilo City, who has been accused by President Rodrigo R. Duterte of being a narco-politician and his lifestyle reportedly under probe as ordered by the President himself, again defended himself saying he has “nothing to hide.” In a statement released late Wednesday, Mr. Mabilog said his house, “while often described as a palace, is not quite a palace. The land or compound on which our circa 1800’s ancestral home stands was inherited and the house was built on a more or less 200 sq meter portion… Last year I opened our doors to the local media for them to see the inside.” He also said that he can “assure the President not a single centavo of dirty money was spent for this home.” The embattled mayor said he and his wife worked hard and invested wisely to build up their assets. “I was already living a comfortable life in Manila as an entrepreneur when I came home to run for city councilor. I didn’t become rich because of politics, much unlike many politicians.” During last Tuesday’s flag-raising ceremony, Mr. Mabilog called on city residents to help the government in its fight against criminality, corruption and illegal drugs.

Tour insurers say Kanye West not cooperating with claim

LOS ANGELES – Syndicates of Lloyd’s of London insurance market filed a countersuit to Kanye West’s claim that he was owed $10 million after canceling his tour last year, saying it found “substantial irregularities” in the rapper’s medical history.

The counterclaim was filed in federal court in Los Angeles on Tuesday, saying West’s Very Good Touring, Inc. had failed to cooperate in the insurance company’s investigation into the claim for canceled concerts, according to the court documents.

Without going into details, Lloyd’s also noted that its policies exclude any losses caused directly or indirectly by the possession or use of illegal drugs, the impact of prescription drugs not used as prescribed, or the use of alcohol.

The court documents said in order to protect West “from public disclosure of details of his private life,” Lloyd’s would not include specific information it had obtained in relation to the claim. Lloyd’s did say the underwriters’ investigation found “substantial irregularities in Mr. West’s medical history.”

West, 40, sued Lloyd’s, an insurance market housing more than 80 syndicates in London, for nearly $10 million in insurance payouts after he abruptly canceled his Saint Pablo tour in November 2016 with more than 20 shows left.

The musician’s lawsuit, filed in early August, said he was hospitalized with a “serious, debilitating medical condition,” following a week of no-shows, curtailed concerts, and onstage political rants.

West’s lawsuit said Lloyd’s had suggested “they may deny coverage of the claim on the unsupportable contention that use of marijuana by Kanye caused the medical condition.”

In its countersuit, Lloyd’s said West’s company and other representatives “have delayed, hindered, stalled and or refused to provide information both relevant and necessary for Underwriters to complete their investigation of the claim.”

“Underwriters are informed and believe, and thereon these same persons have willfully concealed and or misrepresented relevant facts in an effort to thwart Underwriters’ investigation,” the counterclaim added.

West’s lawyer, Howard E. King, said in a statement on Wednesday that Lloyd’s did not “want to honor a legitimate claim but can’t find a factual basis to deny a claim.”

Lloyd’s is seeking a jury trial. Representatives did not immediately return requests for comment. – Reuters

Pag-IBIG Fund exceeds cash loan target in first half as takeouts rise

STATE-RUN Pag-IBIG Fund saw a climb in its cash loan takeout in the first six months of the year, breaching its target for the period. 

In a statement e-mailed to reporters on Thursday, Pag-IBIG Fund or the Home Development Mutual Fund said it disbursed a total of P24.7 billion in cash loans or short-term loans (STL) to its members in the January to June period, 8% up from the P22.8 billion disbursed in the first half of 2016.

STLs at end-June surpassed the firm’s guidance for the period by 2%.

“In the last six months, STL disbursements helped 1.12 million members answer their immediate financial needs,” Housing and Urban Development Coordinating Council (HUDCC) Chairperson Eduardo D. Del Rosario, who also heads the Pag-IBIG Fund Board of Trustees, was quoted saying in a statement.

By end-2017, the state-run firm eyes to release P48 billion worth of short-term loans, P65 billion in housing loans, have P34 billion in membership savings and expand its total membership base to 18.8 million Filipinos.

“While Pag-IBIG is known for our housing loan programs, our short-term loan program serves as an affordable and readily-accessible source of cash loans. The MPL proceeds can be used for minor home improvement, tuition, capital for business, unforeseen expenses, or even a vacation, among others. On the other hand, the CL is open to members living in areas declared under a state of calamity to help them rebuild their lives after the calamity, and has the lowest interest rate in the market,” said PagIBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti.

Under its STL program, qualified members can borrow up to 80% of their total savings in the Fund, consisting of their monthly contribution, employer’s contributions and accumulated dividends earned yearly.

The cash loan facility has multi-purpose loans and calamity loans, both of which are payable within two years and come with deferred first payments for as long as three months.

“With bigger STL releases than last year, we are pretty much on track to make 2017 a much better year than 2016,” Mr. Moti was quoted as saying in a statement.

Pag-IBIG Fund’s net income reached P24.91 billion by end-2016, higher than the P20.2 billion recorded in 2015. Its total assets likewise grew to P439.6 billion in 2016 from the P397.64 billion seen the year prior.

It also expanded its physical footprint as of last year to 119 branches, up slightly from the 112 branches seen at end-2015. — J.M.D. Soliman

Swap heads

By Noel Vera

Movie Review
Ma’ Rosa
By Brillante Mendoza

BRILLANTE MENDOZA’s latest feature Ma’ Rosa executes the immersive handheld camera style of filmmaking as well as could be done despite the small production budget of a little over P15 million (roughly $300,000).

We see Jaclyn Jose’s eponymous character right off, buying bulk supplies from a supermarket and fussing about the lack of proper change at the cashier (a suspiciously common problem — you wonder if sometimes the cashier doesn’t see the extra cash as some kind of tip). The supplies are for her corner convenience store which sells everything from cigarettes to little lollipops to (as a sideline) a packet of meth inserted in your cigarette pack if you have the cash, and know the proper password.

Mendoza’s deadpan introduction of his main characters has the effect of presenting an ambivalent case for us to judge: is Rosa a struggling entrepreneur or small-time drug dealer? A corrupting influence on her children or force for family unity? Our feelings for her are complicated still further when she and her husband Nestor (Julio Diaz) are scooped up in a police raid (shot in long take, with camera following behind the cops as they run down narrow alleyways into Rosa’s cramped little shack).

The police are an altogether different proposition: they’re imperiously languid, not unlike a pride of lions lounging around a watering hole — top predators on the food chain and know it too. They offer a deal: pay P200,000 (nearly $4,000) and the couple can walk free (the cops call this “bail money”). That, or surrender their supplier Jomar (Kristoffer King) so he can pay up.

The more negative critics decry Mendoza for going to the neorealist well once too often but what most of them seem to miss is just how darkly funny this all plays out. The cops are like lords and barons straight out of a George R.R. Martin epic, demanding their entitled share of food, money, drugs, depending on the common serf as a source of both sustenance and amusement — a far cry from the American police of my experience, who act more like stale bureaucrats and insufferable public servants than anything so freewheeling (if they’re interested in a suspect’s connections it’s to add to their case, not their wallets). The police in American TV and movies on the other hand are a whole different can of worms, often incarnated as the iconoclastic cowboy who tosses out the rulebook and goes after suspects Dirty Harry style — and then you realize where the Filipino equivalent find their inspiration, how the scenes at the precinct have the horrible look and feel of a badly staged and directed Hollywood action flick.

The suspects on the other hand are more like cornered rats — they cower before their captors, fawning, wheedling, pleading to win some concession or favor, even to the point of turning in a neighbor or friend to sweeten the deal. If the police are preening rockstar standup comedians the suspects are pratfalling circus clowns, sent in between numbers to keep the audience laughing while the divas prepare for a performance.

Rosa’s children are basically straight men, stony faced acolytes sent out to raise funds for their parents’ freedom. Their subdued demeanor seems poignant, especially Raquel (Andi Eigenmann, Jose’s real-life daughter) — in the face of their parents’ irresponsibility, especially regarding drug dealing, the children are forced to a maturity far beyond their years, and not for the first time. In these youths’ faces you see the weary resignation of kids who have long recognized the need to pick up after themselves, and often after their parents too.

Jose in my book has always been excellent. In Chito Roño’s debut feature Private Show she turned the tired cliché of the provincial lass corrupted by the big city into a breakout performance, sensitive yet unsentimental in accordance with the film’s neorealist style. In William Pascual’s Takaw Tukso she played the cliché of the martyr wife with conviction, eventually cuing us in on the fact that said wife is actually smarter than she lets on to be. By the time of this film, Jose has matured into mother roles and presents the cliché of the quietly forceful family matriarch with deceptive effortlessness — you don’t see her acting, you just see her, a fictional character fully formed and realized and moving across the screen. Diaz — a longtime friend and colleague of Jose — makes for an excellent foil as Rosa’s lackadaisical husband; he really only comes to life when he’s wheeling and dealing with the cops, otherwise he’d just rather sit back and let matters take their natural course, usually in a downward spiral.

Mendoza has been an avid supporter of President Duterte, a believer in Duterte’s brutal war on drugs; paradoxically his film (which was released about the same time) has gained relevance in the wake of this protracted war of some 14 months — some 15 if you count from the date of the elections, when the killings started even before he took office (the president had promised victory in six, tops). Low-level drug dealers are granted more humanity and compassion in this film than they’ve ever been during the actual war, and the corrupt system of “palit-ulo” (“head swapping,” the film’s original title) — of holding a suspect or his wife or his relative hostage till ransom is paid (or someone else higher up is caught) — seems relatively benign compared to the present system of extrajudicial killings. In effect, Mendoza’s earlier work intentionally or not seems like a subtly rendered rebuke against the regime of murder we are seeing today.

Ma’Rosa can now be found online at Youtube and Tumblr.

US bombers fly over Korean peninsula in show of force

SEOUL/TOKYO — South Korea said its air force conducted an exercise with two US nuclear-capable bombers above the Korean peninsula on Thursday, two days after a North Korean missile fired over Japan sharply raised tensions.

The drills, involving two supersonic US B-1B bombers, four US stealth F-35B jets as well as South Korean fighter jets, came at the end of annual joint US-South Korea military exercises focused mainly on computer simulations.

North Korea strongly objects to the exercises, which it sees as a preparation for invasion and has responded with a series of threats and missile launches in recent weeks.

US President Donald J. Trump has responded with his own threats, warning North Korea it would face “fire and fury” if it threatened the United States and that the US military was “locked and loaded” in case of any provocation.

Mr. Trump on Wednesday declared “talking is not the answer” to resolving the long-standing impasse with North Korea.

“The US has been talking to North Korea, and paying them extortion money, for 25 years,” Mr. Trump, who last week said North Korean leader Kim Jong Un was “starting to respect” the United States, wrote on Twitter.

“Talking is not the answer!”

However, US Defense Secretary Jim Mattis, when asked by reporters just hours later if the United States had run out of diplomatic solutions with North Korea, replied: “No.”

“We are never out of diplomatic solutions,” Mr. Mattis said before a meeting with his South Korean counterpart at the Pentagon. “We continue to work together, and the minister and I share a responsibility to provide for the protection of our nations, our populations and our interests.”

Japanese Defense Minister Itsunori Onodera spoke to Mr. Mattis by telephone and agreed to keep putting pressure on North Korea in a “visible” form, Japan’s defense ministry said.

The 15-member UN Security Council on Tuesday condemned the firing of an intermediate range ballistic missile over Japan as “outrageous,” and demanded that North Korea halt its weapons program, but the US-drafted statement did not threaten new sanctions.

Japan was pushing the United States to propose new UN Security Council sanctions, which diplomats said could target North Korea’s laborers working abroad, oil supply and textile exports.

Diplomats expected resistance from Russia and fellow veto-wielding power China, particularly given new measures were only recently imposed after North Korea staged two long-range missile launches in July.

Asked if Japanese Prime Minister Shinzo Abe and Mr. Trump talked about restricting North Korea’s fuel supply when the two spoke by telephone on Wednesday, Chief Cabinet Secretary Yoshihide Suga said an embargo on oil and oil-related products would be an option.

A US ban on travel to North Korea comes into effect on Friday, curbing one of its few remaining supplies of foreign currency.

Defense ministry spokesman Ren Guoqiang told a monthly briefing that China would never allow war or chaos on its doorstep and that military means were not an option.

The situation on the peninsula was serious and “not a computer game” foreign ministry spokeswoman Hua Chunying told a briefing.

Early in August, North Korea announced plans to fire four missiles into the sea near the US Pacific territory of Guam.

The Pentagon’s Missile Defense Agency and the crew of the guided-missile destroyer USS John Paul Jones conducted a “complex missile defense flight test” off Hawaii on Wednesday, resulting in the intercept of a medium-range ballistic missile target, the agency said. The agency’s director, Lieutenant General Sam Greaves, called the test “a key milestone” in giving US Navy Aegis Ballistic Missile Defense ships an enhanced capability, but did not mention North Korea. — Reuters

Megaworld set to open 14th mall

MEGAWORLD Corp. continues to ramp up its commercial portfolio with the opening of the P2-billion Southwoods Mall next month.

Southwoods Mall
Southwoods Mall

Megaworld on Thursday said Southwoods Mall, located inside its integrated township Southwoods City in Biñan, Laguna and Carmona, Cavite, will open its doors in October.

The property giant’s 14th mall offers 58,000 square meters (sq.m.) of retail, dining and entertainment facilities.

“As a trademark, we also want to infuse a bit of nightlife in the mall, that’s why we have a 24-hour food court. Our cinemas maybe, we’ll experiment to having late-night screenings. The third floor will have an activity center for bands, live music and a lot of restaurants and bars as well.” Kevin L. Tan, senior vice-president and head of Megaworld Lifestyle Malls, said in a briefing at the Southwoods Mall on Thursday.

The mall will also have four cinemas, including two that will feature Dolby Atmos Surround Sound technology, as well as one outdoor and two indoor activity centers.

Mr. Tan said 40% of the tenants at the Southwoods Mall are in the food and drink (F&B) business. “In the end of the day, we are still big in F&B culture. We go out with people, we go out and eat,” he said.

Aside from the mall, Southwoods City will soon have mid-rise condominiums, two business process outsourcing (BPO) office buildings, a hospital and its own transportation hub.

senior Vice President and head of megaworld lifestyle malls Kevin L. Tan gives reporters a preview of what Southwoods Mall has in store. — Photo by Anna Mogato

“That’s why our townships have very strong value proposition […] A typical lifestyle of one who resides in our township is to basically live there, you find a job already also in the township and you do all your grocery shopping, all your services, you can meet up with your friends all within the township,” Mr. Tan said.

The township scheme also addresses the traffic woes faced by most Filipinos living in urban areas. “This is basically an integrated community. You don’t even need a car anymore because you can just walk from point A to point B,” he said.

Addressing the rise of online retail, Mr. Tan said that there won’t be much of a threat when it comes to shopping malls in the Philippines.

However, he predicted that they may have to adapt to some online retail practices such as payment schemes.

Mr. Tan said Megaworld is planning to open two more malls in the next five months, one in Iloilo and another in Alabang. This is in line with the company’s target to have 27 malls around the country by 2020.

The property company owned by billionaire Andrew L. Tan reported an 11% rise in attributable net income to P6.44 billion for the first six months of 2017. Megaworld attributed the positive performance to robust rental income from office, mall, and commercial space leasing.

Shares in Megaworld added 4 centavos or 0.82% to close at P4.94 apiece on Thursday. — Anna Gabriela A. Mogato

Fitch raises PLDT outlook to stable

FITCH RATINGS on Wednesday said it revised the outlook on PLDT, Inc.’s Long-Term Local-Currency Issuer Default Rating (LC IDR) to stable from negative.

pldt-interaksyonIn a statement, Fitch said the revised outlook reflects its expectation that the telecommunications company can keep funds flow from operations (FFO)-adjusted net leverage at under or around 2.5 times, lower than the 2.6 times last year. If the figure goes above this, Fitch said it would consider negative rating action.

Fitch also affirmed PLDT’s LC IDR at “BBB+,” its Long-Term Foreign-Currency Issuer Default Rating (FC IDR) at “BBB,” and its National Long-Term Rating at “AAA(phl).”

The ratings agency maintained its stable outlook on the FC IDR and National Long-Term Rating.

Fitch said the “BBB” rating for FC IDR continues to be capped at the country ceiling for the Philippines of “BBB,” indicating the additional risks associated with transfer and convertibility of foreign currency in the country.

Fitch cited several drivers for PLDT’s rating, such as its sale of non-core assets, a return to profitable growth, increased capital expenditure, and its leading market position in the Philippines.

PLDT sold its 25% stake in Beacon Electric Asset Holdings for P21.8 billion in June. The telecommunications company is also selling its 18.3% economic interest in business process outsourcing company SPi Global.

“PLDT’s strategy change to focus more on profitability rather than market share should stabilize price competition and ease EBITDA (earnings before interest, tax, depreciation and amortization) margin pressure. Fitch anticipates progressive EBITDA improvements in the medium term,” the ratings agency said.

PLDT earlier said it aims to hit P70 billion in EBITDA this year.

Fitch also noted PLDT lowered its capex guidance by P6 billion to P38 billion for 2017, as network completion is pushed back to early 2018.

“However, we expect annual capex to stay elevated at around P46 billion for the next two years,” it said.

At the same time, Fitch said PLDT’s ratings show the telecommunications giant still dominates the Philippine market, with 70% subscriber market share for fixed-line and 48% revenue market share for mobile.

Fitch said that it does not foresee any upgrade to PLDT’s Long-Term LC IDR rating given the company’s business profile and investment needs, but the foreign-currency IDR could be upgraded if there is positive rating action on the Philippines’ country ceiling.

On the other hand, Fitch said PLDT’s LC IDR rating could be lowered if FFO adjusted net leverage goes above 2.5 times “for a sustained period.” It added that negative rating action on the Philippines’ country ceiling will also affect PLDT’s Foreign-Currency IDR. — PPCM