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Landbank books higher income

LAND BANK of the Philippines (Landbank) saw its net income grow in 2017 on the back of its robust core revenues.

In a statement sent to reporters on Thursday, state-owned Landbank said it posted a net income of P14.05 billion, climbing 4% from the P13.58 billion recorded in 2016.

Landbank’s net income growth was mainly supported by the double-digit growth of its core revenues.

The bank’s income from loans expanded 12% to P26.8 billion last year from P23.9 billion in 2016.

This, as the lender’s loan portfolio expanded by 30% to P674.3 billion last year, the bank said in the statement.

Landbank’s deposit base likewise rose 15% to P1.42 trillion from the P1.23 billion recorded in 2016 as it added new branches and automated teller machines and expanded the enrollment of its Internet and mobile banking subscribers.

Meanwhile, the bank’s income from investments also expanded 28% to P21.17 billion in 2017 from the P16.49 billion booked in the comparable year-ago period. Landbank’s investment portfolio rose 25% to P580.65 billion.

Return on equity was at 14.8% in 2017, while the lender’s total capital expanded to P104.59 billion by 23%.

“With our solid performance in 2017 further reinforcing the [b]ank’s foundation, we are confident with sustaining growth in 2018,” Landbank President and Chief Executive Officer Alex V. Buenaventura was quoted as saying in the statement.

“Our core objective is to continuously grow the net income in order to expand support to our priority sectors, especially the farmers and fishers, cooperatives, [and micro-, small and medium enterprises].”

Earlier, Landbank said it is eyeing to acquire the 66.67% stake of Philippine Dealing System Holdings Corp. (PDS) after its board approved the move last Jan. 23.

Mr. Buenaventura said the lender’s acquisition of PDS will “increase Landbank[‘s] profits and accelerate development of capital markets in the country.”

Finance Secretary Carlos G. Dominguez III backed Landbank’s planned acquisition of the country’s fixed-income exchange, saying that the Philippine Stock Exchange has taken too long to carry out its acquisition of PDS.

Mr. Dominguez said recently that Landbank needs profits to subsidize farmer loans.

Landbank is the largest provider of loans to small farmers and fishers, cooperatives and local government units. As of September last year, it was the country’s fourth largest bank in asset terms with P1.48 trillion. — K.A.N. Vidal

PCC green-lights ALI-RALI deal

THE COUNTRY’S anti-trust body has given the go-signal for two joint venture deals last week, one of which involves property giant Ayala Land, Inc. (ALI)’s partnership with Royal Asia Land, Inc. (RALI) to develop a mixed-use estate in Cavite.

In a statement issued Thursday, the Philippine Competition Commission (PCC) said the partnership between ALI and RALI does not result in substantial lessening of competition in their respective relevant markets.

The two firms are currently forming a 50-50 venture company that will acquire, own, and develop a 936-hectare property that covers Silang and Carmona in Cavite. The project is slated to house both commercial and residential components.

Under the deal, ALI will act as the property’s project and development, and sales and marketing manager. It will receive 12% of the joint venture company’s gross revenues for the development management fee, and 5% for the sales and marketing fee.

On the other hand, RALI will participate in the planning and development of the property, which entitles it to a 2% share in the joint venture’s gross revenues.

At the same time, the PCC also approved the proposed partnership between Markham Resources Corp. (MRC) and Alternergy Mini Hyrdo Holdings Corp. (AMHHC) to operate three mini hydro projects, namely Kiangan Mini Hydro Corp., Ibulao Mini Hydro Corp., and Lamut-Asipulo Mini Hyrdo Corp.

The three firms will collectively be called Markham-Alterenergy joint venture companies, which will operate, develop, and maintain run-of-river mini-hydro projects located across Asin, Ibulao, Hungduan, Lamut, and Panubtuban in the Ifugao province.

The PCC described MRC as a local firm whose core business is in electricity generation and/or distribution and/or hydropower plants. On the other hand, AMHHC’s business is focused on the sale, assignment, transfer, mortgage, pledge, exchange, or other disposition of real and personal property.

The PCC noted there are enough players in the relevant market that provide competitive constraints for such a joint venture, allowing MRC and AMHHC to proceed with the transaction.

Companies undertaking merger and acquisition transactions, including joint ventures, whose value meet the P1-billion threshold set out under the Philippine Competition Act must secure the PCC’s approval before closing a deal.

So far, the PCC has received 151 notifications for merger and acquisition transactions with a combined value of P2.25 trillion across the manufacturing, financial, electricity, real estate, and transportation sectors. Of this, 41 are global mergers.

Earlier this week, PCC Chairman Arsenio M. Balisacan said the agency is preparing a proposal that will raise the P1-billion threshold for reporting M&A deals.

The private sector has been pushing for a higher notification threshold since the P1-billion level is considered too low, overburdening the PCC and creating delays for companies involved in M&A deals. — Arra B. Francia

FPH chief hits banks for supporting coal plants

By Victor V. Saulon, Sub-Editor

CEBU CITY — Local banks continue to extend loans to new coal-fired power plant projects despite the Philippines being directly hit by climate change, the chairman of Lopez-led First Philippine Holdings Corp. (FPH) said.

Federico R. Lopez, who is also FPH chief executive officer, said banks are “tripping over each other” in extending loans to coal power plants even if they recognize that burning the fossil fuel means emitting greenhouse gases.

“Coal-fired power plants, being the easiest to develop and its fuel supply the simplest to procure, every competitor and new entrant is seeking to build more coal-fired power plants in a vicious race to the bottom,” he told participants of the second Philippine Environment Summit in Lahug, Cebu City on Thursday.

“Adding to these pressures is the fact that majority of banks continue to finance coal production and coal-fired power generation,” he said.

“In fact, major banks financed the top 120 coal plant developers by more than $600 billion over the last four years. They’ve been slow to embrace COP (Conference of Parties) 21 despite verbal pronouncements and still have quite a way to go,” he said, referring to the conference in Paris in 2015 that agreed to limit greenhouse gas emissions and slow down the rise in the earth’s temperature.

He said if banks transitioned away from coal there would be a shift toward lower carbon alternatives, renewable energy (RE) sources and even the adoption of energy efficiency measures.

Mr. Lopez also called out the government for its short-term perspective and ambivalence about climate change issues.

“Despite our countrymen’s vulnerability to the effects of global warming, only token importance is given to such concerns in national public policy. Priority is power adequacy and cheap electricity prices,” he said.

Mr. Lopez said the recent initiative to impose a coal tax is a step in the right direction but would only amount to as little as P0.01 to P0.03 per kilowatt-hour (kWh) tariffs to coal-fired power plants.

He said in other countries such as India, the coal tax is equivalent to P0.06 per kWh. South Korea’s tax on the fuel even reached P0.25 per kWh.

Mr. Lopez, who also chairs FPH units First Gen Corp. and Energy Development Corp. (EDC), said his group faces “quite a number of challenges” in the Philippines. First Gen produces power using natural gas while EDC’s output comes from geothermal plants.

He noted price competition is intense, and retail competition and open access is underway. Low price is still the main driver of electricity for consumers, he added.

“This has driven down profit margins of all power producers. But we’re driving down costs in our geothermal business, both the old fashioned way and through the use of new technology,” he said.

Despite the obstacles, Mr. Lopez said the companies he chairs are committed to a “green road.”

“There are more and more companies that are conscious about greening their footprints and supply chains. This has a lot to do with the millennial consumer coming of age. In the Philippines we’ve been seeing some electricity customers specifically coming to us because they want to green their supply chains with renewable power,” he said.

He said another reason why the Lopez group is committed to its green energy platform is the country’s competitive market.

“The Philippines is primarily a services-driven economy. Retail competition and open access that’s underway and progressing will disaggregate that demand. Our portfolio that blends flexible natural gas-fired plants and geothermal, which is the only competitive 24/7 RE technology today, is a better combination for serving this type of demand called mid-merit,” he said.

He said natural gas and geothermal, which respectively have only a third or a tenth of the carbon emissions of even the most advanced coal plants, are capable of beating the latter’s prices.

“Another reason for optimism about clean energy is that the forces of technology moving very fast. Solar, wind, and battery storage have experienced exponential cost reductions over the last few years. Never in my 20 years in the power industry have I seen anything move so fast,” he said.

Given the rapid pace of renewable energy development, Mr. Lopez said coal-fired power plants “can’t keep up with that kind of variability and may likely end up as underutilized or stranded assets in 10 years or less.”

“In countries like Australia, Germany, and some US states like California with even modest renewable energy penetration they are already experiencing coal and even gas plants being utilized less or being idled,” he said.

Asian film festival means to break down barriers

FOR ITS fifth year, the Asia Society Philippines’ Asia on Screen film festival is aiming to break down barriers to promote unity by presenting 10 independent films from all over the region, said the society’s executive director during the festival’s launch.

“What better medium to express and permeate ideas of tolerance, a positive quality of mind and hopeful spirit than film — more specifically independent film, and more appropriately during these divisive times,” Suyin Liu Lee, executive director of Asia Society Philippines, said during her opening remarks at the launch of the film festival on Feb. 15 at the Greenbelt 3 Cinemas, Makati City.

Running from Feb. 22-25, Asia on Screen, which carries the theme “Breaking Barriers,” was to open last night with Apprentice (2016) by Boo Junfeng. The film, which was screened at the Un Certain Regard section of the Cannes Film Festival, explores the often debated yet taboo issue of capital punishment as seen through the eyes of an executioner.

“At a more visceral level, it has forced me to examine the complexity of the issues surrounding capital punishment — issues we have conveniently put out of sight and out of mind,” said Mr. Junfeng in his director’s statement included in the festival’s press release.

From the Philippines, the festival will screen Women of the Weeping River (2016) by Sheron Dayoc. The film, which bagged six trophies at the 2017 Gawad Urian Awards including those for Best Director and Best Picture, offers a close glimpse of the different discords and cultures of Mindanao through the perspectives of two women.

Also from the Philippines is Mga Rebeldeng May Kaso (2015) by Raymond Red which follows a group of young indie filmmakers during the politically charged, rapidly changing time of the People Power Revolution in 1986.

Laos is represented by Anysay Keola’s Above it All (2015), the country’s first gay film which paints a picture of the attitudes surrounding homosexuality in Laos’ Hmong minority.

How to Win at Checkers (Every Time) is a 2015 Thai film, directed by Josh Kim, which tells the story of an orphaned young boy as he grows up in contemporary Thailand.

From Indonesia comes Emma (Mother), a 2016 Riri Riza film which tackles the traditions of Indonesia as seen through the eyes of a mother struggling to find peace amidst her husband’s polygamy.

In a similar vein, Lipstick Under My Burkha from India — a 2016 film directed by Alankrita Shrivastava — follows three brave hopeful Indian women who desire to break free from the chains of their conservative society.

Korea’s The Wailing (2016), a horror film directed by Hong-Jin Na, is about a police officer trying to catch a man behind the mysterious murders in his village.

Malaysia’s You Mean the World to Me (2017) is a semi-autobiographical film by Saw Teong Hin which aims to capture the depths of love for family even through — and especially during — difficult times.

Finally, Vietnam’s Jackpot (2015) by Justin Nguyen narrates the plight of a poor lottery saleswoman who discovers that one of her customers bought the winning ticket.

Asia on Screen, which runs from Feb. 22-25, will be screened at Greenbelt 3’s Cinema 3 at P150 per film. Tickets can be purchased at the cinema’s box office or at www.sureseats.com. For more information and for the full film schedule, visit https://asiasociety.org/philippines/events/asia-screen-2018 or its corresponding Facebook page. — Z. B. Chua

Mexico’s pro-business candidate wants to double minimum wage

PRESIDENTIAL candidate Ricardo Anaya is pledging to more than double Mexico’s minimum wage as he looks to extend a rally in his support that’s put him within striking distance of the leftist front-runner in this year’s election.

Hailing from the business-friendly National Action Party, Anaya appears willing to defy his conservative supporters to raise one of Latin America’s lowest minimum wages. Anaya is even willing to make Mexico one of the first countries to introduce a universal basic income, said Salomon Chertorivski, his economic adviser and platform coordinator.

Minimum wage “should aspire to reach the poverty line within Ricardo Anaya’s six-year term which today is about 190 pesos per day for an adult and one dependent,” said Chertorivski, who spoke from his new office in Mexico City.

Anaya has the space to make a bold offer. Mexico’s minimum wage of 88.36 pesos per day ($4.73) is less than a third that in Chile and less even than Colombia, which has a lower income per capita, and less than half of Brazil’s. Still, the increases wouldn’t be pushed through at any cost. Each year’s hike would depend on the “opportunity to expand” and the government would watch the market reaction carefully, Chertorivski said.

The currency weakened for a fourth day on Wednesday, declining 0.7% to close at 18.8370 pesos per dollar in Mexico City.

Anaya needs to reach across party lines to convince left-leaning Democratic Revolution Party voters within his coalition not to switch sides to leftist candidate Andres Manuel Lopez Obrador. The fragile pact between the opposing factions has never been attempted before in a presidential election and has stirred up discord within Anaya’s PAN, now beset by internal rifts. Chertorivski most recently served in the PRD-led Mexico City government.

Anaya has cut Lopez Obrador’s lead in half since he announced he was running in December, according to Bloomberg’s poll tracker through Feb. 16. During that period, his support has increased 9 percentage points in opinion polls to average 31%, leaving him 9 points behind with the election a little more than four months away. Trailing the pack is ruling PRI party candidate Jose Antonio Meade with 20% approval.

Pledging higher wages would be similar to what Amlo, as Lopez Obrador is known, has promised. He calls for a gradual wage hike to 171 pesos over six years that’s adjusted for inflation, according to his platform. That compares to Anaya’s vow to reach 190 pesos by the end of his six-year term, also adjusted for inflation.

Still, doubling the minimum wage won’t be easy, even though it compares so badly to Mexico’s counterparts in Latin America.

Each time Mexico has tried to boost the lowest salaries beyond the usual yearly hike the central bank has urged caution to prevent inflation from accelerating. Still, some business groups, such as Coparmex, have urged bigger increases than December’s 10% raise. Banco de Mexico said at the time that because of that hike, inflation would keep climbing in December, which it did, to a 16-year high.

“When it comes to poverty and inequality, if we keep doing the same thing, we’ll have the same results,” Chertorivski said. “We need to begin a new policy on salaries, starting with the minimum wage.” — Bloomberg

Fintech firm taps Atencio as chairman

FORMER 8990 Holdings, Inc. President and Chief Executive Officer Januario Jesus Gregorio B. Atencio III has been appointed to lead Acudeen Technologies, Inc., a financial technology firm that helps out micro, small, and medium enterprises (MSMEs) with their funding needs.

Mr. Atencio, who left the mass housing developer in January, will now sit as the chairman of Acudeen, replacing its founding chair Mario Jordan Fetalino III.

“We have big plans for Acudeen. Our vision to support MSMEs does not end in the country, it is only the beginning. We have activated our market expansion initiatives in Southeast Asia early this year. Having Atencio as our chairman gives us a massive boost in terms of business experience, expertise, and resources,” Mr. Fetalino was quoted as saying in a statement.

Established in 2016, Acudeen links MSMEs with 30- to 120-day receivables to buyers who would like to invest in them. With this, Acudeen has invoiced more than $3 million across over 400 MSMEs, providing liquidity to these businesses.

In turn, individuals and corporates who purchase invoices get attractive returns for short-term cash.

The name of the company is derived from the Filipino words “Ako Din” (Me Too), in line with its vision to help unbanked and underbanked MSMEs in emerging markets.

“We want every entrepreneur to have the capability to say ‘Ako din,’ I have the capability to grow, too,” Mr. Fetalino said.

For his part, Mr. Atencio said he would like to take an active part in the business aside from being an investor in the company.

“I am supporting Acudeen because it is in the forefront of this new whole world; this Wild, Wild West if you will, that continuously benefits a wide range of underserved people in the current financial system. Financial inclusion is right around the corner with the emergence of this initiative,” Mr. Atencio said in a statement.

Prior to being the chair of Acudeen, Mr. Atencio already had experience in helping finance MSMEs through Original Pitch Venture Capital Team, which he founded along with partners in 2016. The venture capital firm aims to “push start-ups with original ideas to their full growth potential,” according to its Web site.

Acudeen is included in the company’s portfolio, alongside online job board for the hospitality sector ServeHappy, Wi-Fi advertising and monetization platform Social Light, Inc., food spoilage detecting strip StillFresh, and fashion and sports wear brand Stoked, Inc.

Mr. Atencio resigned from his positions in 8990 last January after sitting as president and CEO for 13 years. He remains on the company’s board of directors. — Arra B. Francia

Crime hits postwar low in Japan as joblessness declines

CRIME in Japan is dropping amid the longest economic expansion in almost three decades, making one of the safest nations even safer.

The number of recorded crimes fell to 915,042 last year, the lowest level in the postwar era, according to data released by the National Police Agency earlier this month. That came as the nation’s economy had its longest run of sustained growth in almost 30 years, which drove the unemployment rate down to 2.8%.

“The economic recovery is helping crimes go down,” said Akiyoshi Takumori, chief economist at Sumitomo Mitusi Asset Management Co. “The need to steal goes down when you have a secure job.”

There may be other factors for the drop in crime — closer coordination between local volunteers and the police, and the wider use of surveillance cameras have helped prevention, according to the National Police Agency.

But it’s not just the reduction in crime that’s making people feel safer.

Suicides are at their lowest level since 1991, and odds of getting back lost money are rising in Tokyo.

Still, it’s not rosy everywhere. Masayuki Kiriu, a professor of social psychology at Toyo University in Tokyo, said the forms of crime may be changing. Instead of robbing a safe or bank, criminals are trying to take advantage of the increasing number of old people, who generally have more financial assets.

There’s been an increase in so-called “grandparent scams,” in which a criminal calls an elderly person, pretends to be a relative (often a child or a grandchild) in distress, and asks for money.

“Those who commit crimes figure a bank robbery doesn’t make sense considering the costs and benefits,” said Kiriu, who used to work at a national research institute for police science. “They are acting rationally in their view.” — Bloomberg

Marcos-era musical resonates with modern Phl, director Lav Diaz says in Berlin Film Festival

BERLIN — Filipino director Lav Diaz’s musical about martial law under president Ferdinand Marcos is set firmly in the 1970s, but the movie is as much about today, he told Reuters at the Berlin film festival on Wednesday.

Ang Panahon ng Halimaw (Season of the Devil), which premiered at the festival, shows militia forces singing as they terrorize villagers, and mournful locals lamenting the fate of their country. The acapella songs were all written by Diaz himself for the four-hour, black-and-white movie he describes as a “rock opera.”

Diaz, a “slow cinema” director known for contemplative arthouse films, grew up under martial law and saw his village burn in a country Marcos ruled for two decades before he being overthrown in 1986.

“I used 1979 as an epoch for the film, as a setting, as an aesthetic template for the work, but it resonates a lot with the contemporary experience of the Philippines right now and with what’s happening in the country right now,” Mr. Diaz told Reuters.

Asked where he saw the similarities between the Marcos era and the current day, Mr. Diaz said: “Fascism, the populist perspective of this very new government, barbarism — it’s very violent — there’s paranoia, there’s even psychosis in the way they deal with things.”

President Rodrigo Duterte has come under international criticism for his human rights record and on Wednesday his spokesman had to react to a US intelligence report that named him as a threat to democracy, saying: “Duterte is no autocrat.”

But his opponents fear Duterte will try to cling to power beyond his term that ends in 2022 and are troubled by his admiration for Marcos.

Actor Bart Guingona said that while the movie was nominally about the Marcos era, it felt universal.

“I think one of the theses of the film is that history repeats itself and it’s a sad thing but a thing we have to be aware of,” he said.

Diaz is known for lengthy films and at the 2016 Berlin film festival he won a Silver Bear for an eight-hour-film called Hele sa Hiwagang Hapis (A Lullaby to the Sorrowful Mystery).

He won the 2016 Golden Lion at the Venice Film Festival for his nearly four-hour-long drama Ang Babaeng Humayo (The Woman Who Left).

Ang Panahon ng Halimaw is among the 19 films vying for the main prize, the Golden Bear, which will be awarded on Saturday. The festival in the German capital runs until Feb. 25. — Reuters

Oscar contender Shape of Water accused of ripping off 1969 play

LOS ANGELES — The Shape of Water, a contender for this year’s best picture Oscar, was hit with a plagiarism lawsuit on Wednesday, alleging that its fantastical plot about a romance between a cleaning woman and a mysterious river creature was lifted directly from an American stage play.

The lawsuit, filed in federal court in Los Angeles, alleged that director Guillermo del Toro, producer Daniel Kraus, and movie studio Fox Searchlight “brazenly copies the story, elements, characters and themes” from a 1969 play by the late Paul Zindel.

The Shape of Water has a leading 13 Oscar nominations at the March 4 Academy Awards ceremony, including nods for best picture and best director. The lawsuit was filed the day after ballots went out to some 8,000 members of the Academy of Motion Picture Arts and Sciences, who vote on the Oscar winners.

The lawsuit, filed by Zindel’s son David, listed more than 60 resemblances between the play Let Me Hear You Whisper, and The Shape of Water.

They include the play and the movie’s basic story of the lonely janitor who works at a scientific laboratory during the Cold War, forms a loving bond with a captive aquatic creature and hatches a plan to liberate it.

In the Zindel play, the creature is a dolphin. In the movie, it is a half-man, half-river creature.

The lawsuit said that despite “the glaring similarities between the play and the obviously derivative picture, defendants never bothered to seek or obtain a customary license” for the rights to Zindel’s play, nor credit him.

Fox Searchlight denied the claims as “baseless (and) wholly without merit.”

The studio said in a statement that the lawsuit seemed timed “to coincide with the Academy Award voting cycle in order to pressure our studio to quickly settle. Instead, we will vigorously defend ourselves and, by extension, this groundbreaking and original film.”

The lawsuit cited interviews given by Kraus and Del Toro in which they said Kraus, an American novelist, came up with the storyline about a janitor who kidnaps an amphibian.

It alleged that Kraus was aware of Zindel and his play, which was produced for television in 1969 and again in 1990.

New York-based Zindel, who won a Pulitzer Prize for his 1964 play The Effect of Gamma Rays on Man-in-the-Moon Marigolds, died in 2003.

The Shape of Water has already won a best picture Golden Globe and numerous acting and craft awards from film critics’ groups in the United States and elsewhere. — Reuters

The drowned world

By Noel Vera

Movie Review
The Shape of Water
Directed by Guillermo del Toro

GUILLERMO DEL TORO’s latest film begins with a world already underwater — fish fluttering down a carpeted hallway, chairs and tables spinning in slow motion, a lamp and alarm clock settling gradually down to arrange themselves on a side table while the princess — head wrapped in a sleep mask — sinks into her couch. Then the alarm rings, jerking Elisa Esposito (Sally Hawkins) out of her gentle greenlit dream.

There’s plenty to pick apart in The Shape of Water starting with the script — too schematic, too simpleminded; wears not just its heart but politically correct agenda ostentatiously on its sleeve.

Octavia Spencer as Zelda, Richard Jenkins as Giles, Hawkins, and even Doug Jones (nameless under all that fish makeup) do well enough with the thin material, playing not so much characters as a carefully diverse (by race, sex, orientation, even species) portfolio of stereotypes with conviction and humor (Spencer in particular deserves an MVP for her brass, while Jenkins deserves a nod for his delicately sketched lonely artist). Poor Michael Shannon is the prominent exception, stuck with functioning as the picture’s putative monster, the strictly one-note Colonel Strickland.

That said, Strickland — like the present occupant of the White House — offers some entertainment value, in the way he goads us into anticipating just how appalling his granite-jawed officer can get, from issues of hygiene (he washes his hands before he urinates) to macho swagger (swings a long, black, vicious-looking cattleprod from which, Elisa can’t help but notice, blood drips) to unimaginative sex with the wife (man grunting on top). Just when you think he’s scraped the barrel’s bottom, he manages to break through to a new low.

Del Toro has arguably sketched more interesting villains. Captain Vidal in Pan’s Labyrinth was driven by the impulse to procreate, to produce an heir to which he can pass on his fascist ideals; Prince Nuada in Hellboy 2: The Golden Army dreams of regaining the kingdom his father lost to encroaching humans. Strickland is, at most, bent on maintaining the primacy of the white male with as much entitled arrogance as he can muster.

Del Toro pushes the metaphor with our beloved chief executive* pretty far, but not, arguably, too far (no obscenely large waistline, or urine-tinted hair); he does focus on Strickland’s fingers, two of which the creature shortens to an abrupt nub.**

That all said, it isn’t so much the obvious-as-daylight narrative that carries the film as it is the passion Del Toro puts into the adorning details. You might say the material — cobbled together from Jack Arnold’s The Creature From the Black Lagoon (and in fact someone mentions capturing the creature somewhere in South America, where the earlier film was set) and Del Toro’s own Hellboy movies (a more malevolent incarnation of the Bureau for Paranormal Research and Defense) with bits of Cinema Paradiso and a Fred Astaire musical thrown in — is just an excuse for Del Toro to tell his first balls-deep no-holes-barred love story.

One might mention Sally Hawkins’ fearless miming, fearless not so much for the nudity (she has a superb body she needn’t be ashamed of) as for the emotional nakedness, the patience and trust to build a character out of gestures and narrative context and facial microexpressions, as opposed to spoken lines of dialogue (I’d say her most interesting moments are when she holds back from “saying” something she badly wants to say — a challenge to suggest, I imagine, when playing a deaf mute).

Same with Doug Jones’ creature: Jones and Del Toro play coy at first, introducing the creature first in a steel-and-glass water coffin, later with a length of chain dragging back and forth in an ominously dark pool (okay, a smaller black lagoon). His first closeup is as carefully lit and presented as any glamor shot: turquoise and wrought-iron face framing a pair of sapphire eyes (a nictitating membrane like a coyly tossed veil drawn briefly across); a killer bod (to match Hawkin’s fleshy own) rearing up out of the water to present itself for worship.

What makes Jones’ performance however, is his dignity. The spine arches back in unconscious pride; even manacled there’s the sense of tattered grandeur about him, like a prince in chains. When Giles meets him for the first time, Del Toro shoots over the creature’s shoulder, preparing us for Giles’ reaction of horror and awe (an old genre cliché) — we see the awe all right, but then Jenkins breathes “He’s beautiful!” and spends the rest of the night trying to sketch him.

Elisa and creature together — both without speaking voice (though both perfectly capable of expressing sounds of anguish or pain) make perfect dancing partners in what isn’t so much a filmed narrative as it is a filmed ballet, with Del Toro’s camera acting as a perfect third: for the length of the film it glides past them, swirls ’round them, captures them casually posed in a series of lyrically framed shots.

The dance wouldn’t be half as memorable without Dan Laustsen’s subterranean lighting (all of Baltimore seems not just underground but dripping, gleaming wet) and Alexandre Desplat’s fairy-tale music. Del Toro has a thing for tunnel systems and sewers and Laustsen — who worked on Del Toro’s Mimic (set mostly in the New York subways) and Crimson Peak (set in a Gormenghast-style mansion with a [What else?] vastly elaborate basement) — has given full voice to the filmmaker’s ideas. Desplat’s delicate flute (suggesting the amorphous shape of water) and chimes (suggesting a water drip echoing against stone walls) add emotional color to the darkly lit sets: not forbidding as sewers often are (well, not completely forbidding) but reverberating cavern-like spaces, the glow coming from what seems like a hoard of gold doubloons and jeweled crowns hidden just around the corner.

Try not to listen too hard to Giles’ opening narration — his listing a “princess,” a “prince,” a threatening “monster” is too on-the-nose — but instead enjoy Jenkin’s soothing delivery as a teller’s practiced introduction into the story proper. Try too not to make much out of a dance sequence late in the film — mainly Del Toro rendering baldly explicit what has been so beautifully metaphorical all along. Try (skip the rest of this paragraph if you intend to see the film!) not to think the plot through too hard — Why, when she’s sprung the creature, does Elisa wait for some stupid canal to fill up with rainwater? (Because she wants to know the creature better!) Why, when the creature escapes, does Strickland direct his attention away from Elisa so quickly? (Because he’s that much of a misogynist!) And why, if the creature had the power to heal, doesn’t he heal his water deficiency earlier? (Because it takes a lot out of him, and he can’t do it continuously!) And where did Elisa’s gills come from? (She’s one of them, silly!)

Do try (as if you needed the advice!) to focus on the creature — easily the most intricately lovingly realized in Del Toro’s varied menagerie (addressed to sculptor Mike Hill: “I don’t want you to make a creature; you’re designing the leading man”). The film’s amphibian biped is the ultimate social outsider/illegal immigrant: unfamiliar with our harshly patriarchal world or its equally harsh language (“We’re created in the Lord’s image; you don’t think that’s what the Lord looks like do you?”), incarcerated by a more militarized United States Citizenship and Immigration Service (complete with manacles and cattleprods), he’s slated to suffer an even worse fate than most aliens, at least of the human kind (dissection for further study).

If you can do that, if (and this a big “if”) you can sit and settle and open yourself up to the possibility that you can be charmed and enchanted and fall in love again — the film just might work. If you can’t — well, I understand, but can’t help feeling just a little bit sorry.

MTRCB Rating: R-13

* A presidential candidate at the time of production, though his racist anti-immigrant message had been resonating throughout the year.

** Del Toro has this odd trait of meting out sadistic punishment democratically (some would say indiscriminately), to the villainous and virtuous alike.

UK wages pick up as fewer Eastern EU workers fill jobs

UK pay is picking up after employment among citizens of the eastern countries that joined the European Union more than a decade ago fell for the first time since 2009.

Average weekly earnings excluding bonuses rose 2.5% in the fourth quarter from a year earlier, the most since December 2016, the Office for National Statistics said on Wednesday. The overall employment rate rose to 75.2%, close to a record, though unemployment increased to 4.4% as fewer workers were economically inactive.

While the figures may be welcomed by Brexit supporters who complained that open immigration undermined the wages of local workers, the data overall provides a more mixed picture for policy makers. Bank of England (BoE) Governor Mark Carney may be asked about them when he appears before Parliament’s Treasury Committee later on Wednesday.

Speculation has mounted in recent weeks that the BoE’s Monetary Policy Committee could raise interest rates again as early as May, but the first increase in the jobless rate in 17 months may undermine rate bets in the short term, according to Scotiabank economist Alan Clarke.

“In MPC terms, higher unemployment means more spare capacity and more tolerance for above-target inflation and could support the doves,” he said. “Ultimately we expect higher wage inflation to dominate, but as we warned, it was never going to be smooth sailing.”

BoE officials estimate there is little slack left in the economy, with surveys suggesting recruitment difficulties are forcing some firms to raise wages. Central-bank forecasts show unemployment averaging 4.2% in the coming quarters, below the 4.25% rate officials say the economy can sustain without generating inflationary pressure.

The pound weakened after the data, sliding 0.5%to $1.3923 as of 11:28 a.m. London time. UK pay growth is still slower than inflation, which is running at 3%. Private-sector pay gains accelerated to 2.6% from 2.5%.

Employment rose by 330,000 last year and the gain was largely driven by UK nationals, the ONS said. Employment among EU8 nationals fell by 1%, and there was a 1.5% drop among non-EU citizens. Overall, employment of non-UK nationals rose by 3.1%, half the pace seen in 2016.

The outlook for interest rates also depends on whether any pickup in wages is matched by productivity improvements, and there were some positive signs in the latest data.

Output per hour gained 0.8% in the fourth quarter following a 0.9% gain in the previous three months, which was the most in six years. — Bloomberg

Japan’s Isetan department store now sells chocolates made from Philippine cacao beans

JAPAN’S Isetan Mitsukoshi Group recently launched a new chocolate brand using cacao beans sourced from four Southeast Asian countries, including the Philippines, according to the trade department.

In a statement, the Department of Trade and Industry’s Trade and Investments Promotion Group (DTI-TIPG) said Japan’s largest department store group sourced the cacao beans from Davao-based Plantacion de Sikwate Cacao Producers Association, Inc. for its Nayuta Chocolatasia brand.

Aside from the Philippines, Isetan is also sourcing cacao beans from Vietnam, Malaysia, and Indonesia for the chocolate “formulated to match the Asian palate.”

“The presence of Philippine cacao beans in the mainstream Japanese market is a clear manifestation that our produce are truly world-class. With sufficient support and aggressive marketing strategies being implemented by various private and public sector partners, we hope more and more Philippine goods will join the global market,” Undersecretary for Trade and Investment Promotions Group Nora K. Terrado was quoted as saying.

According to DTI, Mindanao accounts for 90% of the country’s cacao production, with 80% coming from Davao region.

The Philippines produces around 10,000 metric tons (MT) of cacao annually, amid 50,000 MT domestic demand. To address this, the DTI and Department of Agriculture committed to increase the local yield to 100,000 MT by 2020.

According to data from the Department of Agriculture, the global demand for cacao is expected to hit between 4.7 million to 5 million metric tons (MT) by 2020. However, a global cacao shortage of 1 million MT is also expected by 2020.

Through its shared-service facilities, DTI has provided 16 cacao-processing facilities to micro-,small and medium enterprises to boost the production of the high-value crop. — Anna Gabriela A. Mogato