UnionBank subsidiary CitySavings to acquire Ropali’s PR Savings Bank

January 3, 2018 | 12:02 am

CITY SAVINGS Bank, Inc. (CitySavings), the thrift banking arm of Aboitiz-led UnionBank of the Philippines (UnionBank) is set to acquire Philippine Resources Savings Banking Corp. (PR Savings) of the Ropali Group.

In a disclosure to the Philippine Stock Exchange yesterday, CitySavings said it has signed a share purchase agreement with the Ropali Group to acquire 100% of the common shares of PR Savings.

The purchase agreement was signed by Ropali Group chairman and founder Roberto P. Alingog and CitySavings Bank chairman and UnionBank executive vice-president Eugene S. Acevedo.

“This acquisition will expand our mass market reach, consistent with our vision to promote inclusive growth in the country,” UnionBank President and incoming Chief Executive Officer Edwin R. Bautista was quoted as saying in the statement.

The transaction, which will need to undergo closing conditions and secure regulatory approval, is targeted to be finished by the second quarter.

PR Savings Bank is the 15^thlargest thrift bank in the country in asset terms as of September 2017 with P13.2 billion. The Isabela-based bank, which started its operations in 1977 as Rural Bank of Naguilian (Isabela), Inc., operates 46 branches and 56 other banking offices.

The lender is focused on motorcycle, agri-machinery and teachers’ salary loans, serving over 131,000 borrowers, mostly from the mass market segment.

“The acquisition represents exciting new opportunities for CitySavings to substantially expand its reach in Luzon, as well as enter new market segments such as motorcycle and agri-machinery financing,” the statement read.

PR Savings is part of the Ropali Group of Companies, a mid-sized conglomerate with focus on motorcycles and agricultural machinery.

Ropali Group also owns five rural banks, which include Agribusiness Rural Bank, Inc., Rural Bank of Madela (Quirino), Inc., Emerald Rural Bank, Banco Alabang, Inc., and Farmers Savings And Loan Bank, Inc.

This acquisition will help bolster the operations of CitySavings Bank, which is the sixth largest thrift bank in the country as of September 2017, with assets amounting to P71.7 billion. — K.A.N. Vidal

Moon says better inter-Korean relations tied to resolution of Pyongyang’s nuke program

January 3, 2018 | 12:02 am

SEOUL — South Korean President Moon Jae-in said on Tuesday the improvement of inter-Korean relations was linked to resolving North Korea’s nuclear program, a day after the North offered talks with Seoul but was steadfast on its nuclear ambitions.

“The improvement of relations between North and South Korea cannot go separately with resolving North Korea’s nuclear program, so the foreign ministry should coordinate closely with allies and the international community regarding this,” Mr. Moon said in opening remarks at a cabinet meeting.

‘A BIGGER PRIORITY’
Mr. Moon’s comments contrasted with those of North Korean leader Kim Jong Un, who said on Monday that Seoul should stop asking other countries for help in improving ties between the two Koreas.

“This shows the Moon administration is looking at the situation from a very realistic, rational point of view,” said Jeong Yeung-tae, head of the Institute of North Korea Studies in Seoul.

“It also shows resolving North Korea’s nuclear issue has a bigger priority (than improving inter-Korean relations).”

Mr. Moon’s comments came after a New Year’s Day speech by Mr. Kim who said he was “open to dialogue” with Seoul, and for North Korean athletes to possibly take part in the Winter Games, but steadfastly declared North Korea a nuclear power.

The South Korean president requested the ministries of unification and sports to swiftly create measures to help North Korea participate in the upcoming Pyeongchang Winter Olympics.

Choi Moon-soon, governor of Gangwon Province where the Pyeongchang Olympics is set to be held, has proposed South Korea would send cruise ships to bring North Korean athletes and officials to Pyeongchang, according to South Korean media.

Mr. Choi met North Korea’s sports official Mun Woong in China on Dec. 18 on the sidelines of an international youth football tournament where North and South Korea soccer teams competed, the Dong-A Ilbo newspaper reported.

Mr. Choi suggested sending cruise ships to North Korea’s Wonsan port to help the North minimize transportation costs and to use the ships as accommodation in South Korea, said the newspaper.

The governor did not immediately respond to a request by Reuters for comment on Tuesday.

‘OUR OFFER STANDS’
As for talks between the two Koreas, Defense Ministry spokeswoman Choi Hyun-soo said Seoul was awaiting a more detailed reply from Pyongyang to already-existing offers for dialogue made back in July last year by Seoul.

“We offered military talks in July and our offer still stands. We are waiting North Korea’s reply. We are willing to talk with North Korea on the peaceful resolution of the North’s nuclear program regardless of form, time and method,” said Choi in a regular briefing.

Mr. Kim’s offer of talks and sporting cooperation with South Korea follows a year dominated by fiery rhetoric and escalating tensions over Pyongyang’s nuclear weapons program.

North Korea tested its most powerful intercontinental ballistic missile in November, 2017, which it said was capable of delivering a warhead to anywhere in the United States.

On Monday, Mr. Kim said that North Korea would mass produce nuclear warheads and ballistic missiles in 2018 for operational deployment, warning he had a “nuclear button” on his desk which he would use if his country was threatened. — Reuters

No surprises

January 3, 2018 | 12:02 am

Action in the 2017-2018 National Basketball Association (NBA) season is nearing the halfway point and so far I have to say there are hardly any surprises as far as which teams are figuring in the playoff picture.

A quick look at the standing as of Jan. 1, 2018, the teams expected to make the playoffs are pretty much on track, with the final placing left to be determined.

Out in the Eastern Conference the Boston Celtics (30-10), Toronto Raptors (25-10) and the defending conference champions Cleveland Cavaliers (24-10) are the top three teams to date.

Definitely this is no left field for the three have been the best teams in the East for the last couple of years.

Boston, if at all, should get some second look not necessarily because it does not have in it to lead the pack but considering how it started the season, losing marquee signing Gordon Hayward to a freak, season-ending leg injury on opening day, one would expect it perhaps to lose some ground.

But thanks to young guns Jaylen Brown and Jason Tatum and the leadership and slick play of new leader Kyrie Irving and veteran Al Horford as well as the great coaching of Brad Stevens the Celtics are making things happen.

Toronto is up there with DeMar DeRozan leading (How about the 52-point performance yesterday, huh?) while Cleveland has been a solid third with still much upside despite the myriad of issues and injuries it has had to deal with so far.

The Detroit Pistons (20-15) at fourth are deserving albeit I still feel consistency issues still need to be addressed lest they see their placing fall.

The Washington Wizards (21-16) and Milwaukee Bucks (19-15) at fifth and sixth place, respectively, could be better on the back of stronger lineups.

The Miami Heat (19-17) and Indiana Pacers (19-18) round out the top eight and credit should be given to them to how they are handling transition.

Outside looking in are the New York Knicks (18-18) at ninth and Philadelphia 76ers (17-19) at 10^th, which is representative of where they are at this stage of their development as a team led by up-and-coming stars.

The Charlotte Hornets at 13^th place with a 13-23 record has been disappointing for me considering they already have a big man like Dwight Howard that should help them compete for at least at the tailend of the top eight spots.

In the Western Conference, the top three teams seen going at it for number one are living up to the billing.

The defending world champions Golden State Warriors (29-8) are leading followed by the Houston Rockets (26-9) and San Antonio Spurs (25-12).

At the current rate things are going it is highly probable that such sequence will stand till the end of the regular season albeit the recent hamstring injury to leading most valuable player candidate James Harden could be telling for Houston.

For all the changes they made in the offseason the Minnesota Timberwolves (23-14) and Oklahoma City Thunder (20-17) are starting to show some competitive form and could be dangerous at number four and five.

The Denver Nuggets (19-17), Portland Trail Blazers (18-17) and New Orleans Pelicans (18-18) could easily change positions but they no doubt have the materials to advance to the playoffs.

Blake Griffin’s recent injury had pushed the Los Angeles Clippers (16-19) back but now that he is playing anew they may make a serious push for the postseason.

The Utah Jazz (16-21) have shown glimpses of promise but it remains to be seen if they have enough motor to propel their playoff push.

Half way into the NBA season, we can see patterns developing, But it is still a long way to go and changes could still happen especially at the lower half of the standings heading into the postseason, leaving us fans with still something to look forward to.

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@www.bworldonline.com

SC fines RTC judge for ignorance of law

January 3, 2018 | 12:02 am

FOR allegedly granting the application for bail and ordered the release of a man with no standing warrant of arrest, Bogo City Regional Trial Court (RTC) Judge Antonio Marigomen was found guilty of an administrative case. The Supreme Court (SC), in a decision penned by Associate Justice Marvic Leonen, found Mr. Marigomen of Branch 61 liable of less serious charge for violating Supreme Court rules, directives, and circulars, and of serious charge of gross ignorance of the law. — The Freeman

Ducati pitches 2018 Multistrada 1260 as a handier multipurpose tool

January 3, 2018 | 12:02 am

INTENDED from its 2010 launch as a “four-bikes-in-one” model, the Multistrada has proven its versatility in serving as a sport bike, a tourer, an enduro or a daily-use street bike, this ability largely credited to its multiple riding modes. Now, Ducati said it has made the model even more capable in tackling its different roles with the release, in mid-December 2017, of the 2018 Multistrada 1260.

As its name declares, the latest Multistrada gets a bigger engine — the 1,262-cc Testastretta DVT (for Desmodromic Variable Timing) engine that propels its XDiavel sibling. Tuned differently to put out torque around the middle of the rev range, the Euro4-compliant L-twin engine allocates 85% of its torque output at 3,500 rpm while bettering this by 18% at 5,500 rpm. Ducati said the engine makes the highest torque output in its class at 4,000 rpm, a speed at which most L-twins spin, so the Multistrada 1260 is handier for daily use.

Along with new connecting rods, crankshaft and cylinders, Ducati said it recalibrated the bike’s DVT system not only for the engine to produce more grunt in low to mid range, but also to make it churn 158 hp at 9,750 rpm and 129 Nm at 7,500 rpm.

Controlling power delivery has been improved by a new ride-by-wire system that’s paired to the Ducati Quick Shift, which promises “more accurate” gear shifts, according to Ducati. Other electronic governors fitted to the bike are the Bosch Inertial Measurement Unit that controls Cornering ABS, Ducati Cornering Lights, Ducati Wheelie Control (DWC) and Ducati Traction Control (DTC). Both DWC and DTC allow the rider to set sensitivity levels by eight different degrees, or disable these altogether. The brand’s Vehicle Hold Control has been included as standard this time around, while the Multistrada 1260 S variant adds the semi-active Ducati Skyhook Suspension Evolution control system to the package.

Regardless of variant, the Multistrada 1260 is kitted with cruise control. On the 1260 S this can be activated via Bluetooth on the multimedia system, which, incidentally, can pair with smart phones. Information about calls, text messages or music selection from connected devices is displayed on a new TFT dashboard.

The Multistrada 1260’s chassis has been updated with a longer swing arm, stretching the bike’s wheelbase. But Ducati said the revised geometry of the front suspension has led to “sharper handling in curves, and ensures full stability even when riding two-up at full load.”

While retaining the styling cues of the previous Multistrada 1200, the 1260 sports new details like its sleeker side fairing panels, a rear aluminum sub-frame that incorporates luggage mounts, and the five Y-spoke wheels. And, like before, the Multistrada 1260 is available in four equipment packages. In Touring guise the bike gets heated grips, a center stand and color-matched panniers. Sport throws in a Termignoni slip-on exhaust, carbon fiber mudguard and billet aluminum brake and clutch reservoir caps. Urban counts a top case, a lockable tank bag and a USB hub while Enduro wears auxiliary lights and Ducati performance components by Touratech, which include engine protection bars, a radiator guard and oil sump guard, a larger kickstand base and off-road foot pegs.

All this makes the Multistrada 1260 an even handier tool.

Art&Culture (01/03/18)

January 3, 2018 | 12:01 am

Julius Legaspi at Gateway Gallery

GATEWAY GALLERY opens 2018 with an exhibit by Julius Legaspi who will present new pastel paintings in his fourth solo show, Paghirang. It opens with an Artist Reception on Jan. 6 at the Small Room of Gateway Gallery. In this solo show, Legaspi — who hails from Bulacan — demonstrates his mastery of the pastel medium. He conducts art workshops, is president of Philippine Pastel Artists, and is a member of the Philippine Art Educators’ Association. Paghirang will open to the public on Jan. 7 and will run until Jan. 20. Parts of the proceeds of the exhibit will go to Remote Area Medical Philippines to support is medical missions. Gateway Gallery — open daily from 10 a.m. to 7 p.m. — is located at the 5F Gateway Tower, Araneta Center, Quezon City.

Paolo Icasas at the CCP

AN exhibit of works by Paolo Icasas called The Ordinary Man is on view at the Cultural Center of the Philippines (CCP). The artist takes inspiration from the daily lives of manual laborers, especially those who he works with firsthand. As the first born of parents engaged in a modest construction business, Icasas was the one who took over after his father’s death. It wasn’t just the business that was passed on; it was also the care for the livelihood and welfare of his late father’s workers, most of whom had left their homes in the provinces in hope of a better pay to raise their respective families. The artist sees the manual laborers as extensions of the vacant lots he has a certain affinity to and which he paints as landscapes . Most of his landscapes are named after the addresses of the vacant lots. Calling them by their “name” is his way of bringing the attention to the vacant lots themselves, and to that which they represent.

4 exhibits at Vinyl on Vinyl

OPENING on Jan. 12 are four exhibits featuring Timo Roter and Manuel Ocampo, Nemo Aguila and Darrel Ballesteros, Edric Go, and a group exhibit curated by Alex Junia, Gab Baez, and Geline Marquez featuring works by Nice Buenaventura, Mars Bugaoan, Miles Villanueva, Gab Baez, Isha Naguiat, and Jacob Lindo. Vinyl on Vinylis located at Pasillo 18, La Fuerza Compound 1, Chino Roces Ave., Makati City.

Photos at Solaire

SIX photographers whose intent is to get the viewer to pause, go a level deeper and “see beyond” will have a photo exhibit/fund-raiser for the ERDA Tech Vocational School at Solaire’s The Shoppes Artway from Jan. 3 to 25. The six photographers are Angela Panlillio, Bern Wong, Jeff Dytuco, Michael Olivares, Fred Tiongson, and Tony Rivera.

Thomas is back

January 3, 2018 | 12:01 am

For the Cavaliers, some good news: Isaiah Thomas will finally be taking to the court today. He played the long game; even as he wanted to burn rubber as fast as he could, he followed the advice of the franchise’s medical staff and took his time. Never mind that he’s slated to be a free agent after the season, and that missing four-tenths of a contract year will make it harder for him to prove he’s worth, in his words, “the Brink’s truck.” Preferring to first take a step back in order to move two steps forward, he thought best to err on the side of caution in recovering from the hip injury that sidelined him deep into the 2017 playoffs.

Parenthetically, Thomas couldn’t have returned at a better time. The Cavaliers have lost three straight — and five of the last six — matches, and need the spark he figures to provide in order to shake off the malaise. He won’t be hitting the ground running, what with a minutes restriction slated to be strictly implemented. Still, his presence cannot but he deemed a boon; for all his supposed deficiencies on defense, his dynamism on offense should prevent the opposition from loading up on fellow All-Stars LeBron James and Kevin Love, not to mention provide opportunities for the rest.

Which, for all intents, is why Thomas’ teammates couldn’t be any happier. Among others, James, Dwayne Wade, and J.R. Smith took to social media to welcome him back, professing excitement to see him in wine and gold against the Blazers today. Heck, even Jose Calderon and Cedi Osman, whose spots in the rotation he will be affecting, professed their glee. Notably, he will be missing the set-to against the Celtics tomorrow, but small strides make for sterling sprints; the hope is that he will be able to go full bore when he pays the Garden a visit next month.

In any case, Thomas is back, and Cavaliers fans will know soon enough whether he can succeed in exorcising the demons left behind by erstwhile star Kyrie Irving. All signs point to the affirmative. He’s showing up at last, and, if his capacity to continuously overcome adversity is any indication, he’ll be putting up as well.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

Japan’s emperor greets New Year well-wishers as he prepares to abdicate

January 3, 2018 | 12:01 am

TOKYO — Japan’s Emperor Akihito on Tuesday delivered his traditional New Year address with tens of thousands of well-wishers flocking to the Imperial Palace for one of the last such occasions before he abdicates next year.

It was the final New Year appearance alongside Akihito for Princess Mako, his eldest granddaughter, who is scheduled to wed her college sweetheart in November and leave the royal family.

“Happy New Year. I’m sincerely glad to celebrate the new year together with you,” the emperor said in a televised address from the palace.

The Imperial Palace said more than 73,000 people attended his address, many waving small Japanese flags and shouting “Banzai” or “Long live.”

The emperor was flanked by Mako and other family members. They were scheduled to make two further appearances before the crowd in the afternoon.

The emperor shocked the country in 2016 when he signaled his desire to take a back seat after nearly three decades in the job, citing his age and health problems.

He will be the first emperor to retire — on April 30, 2019 — in more than two centuries in the world’s oldest imperial family.

Akihito’s eldest son, 57-year-old Crown Prince Naruhito, is set to ascend the Chrysanthemum Throne a day later.

The status of the emperor is sensitive in Japan given its 20^th century history of war waged in the name of Akihito’s father Hirohito, who died in 1989.

Akihito has keenly embraced the more modern role as a symbol of the state — imposed after World War II ended.

Previous emperors including his father, Hirohito, had been treated as semi-divine.

The palace, surrounded by stone walls and mossy moats — is opened to the general public twice a year — on the emperor’s birthday and the second day of New Year — for the royal family to greet well-wishers. — AFP

China’s WeChat denies storing user chat history

January 3, 2018 | 12:01 am

HONG KONG — Tencent Holdings’ WeChat, China’s most popular messenger app, on Tuesday denied storing users’ chat histories, after a top businessman was quoted in media reports as saying he believed Tencent was monitoring everyone’s account.

“WeChat does not store any users’ chat history. That is only stored in users’ mobiles, computers and other terminals,” WeChat said in a post on the social media platform.

“WeChat will not use any content from user chats for big data analysis. Because of WeChat’s technical model that does not store or analyze user chats, the rumor that ‘we are watching your WeChat everyday’ is pure misunderstanding.”

Li Shufu, chairman of Geely Holdings, owner of the Volvo car brand, was quoted in Chinese media on Monday as saying Tencent Chairman Ma Huateng “must be watching all our WeChats every day.”

Like all Chinese social media platforms, WeChat is required to censor public posts deemed “illegal” by the Communist Party. WeChat’s privacy policy says it may need to retain and disclose users’ information “in response to a request by a government authority, law enforcement agency or similar body.”

WeChat did not immediately respond to a request for further comment.

According to a report by Amnesty International, Tencent ranked at the bottom of 11 tech firms running the world’s most popular messenger apps for how they use encryption to protect user privacy.

China’s cyber watchdog in September announced a new rule making chat group administrators and companies accountable for breaches of content rules.

In the same month it handed down maximum penalties to tech firms including Tencent, Baidu, Inc. and Weibo Corp. for failing to properly censor online content, and asked them to increase content auditing measures. — Reuters

Rates on PHL treasuries to rise in line with Fed, inflation

January 3, 2018 | 12:01 am

THE GOVERNMENT will have to offer higher rates to borrow money this year with the Federal Reserve (Fed) expected to raise interest rates thrice, and amid the inflationary impact of tax reform in the US and the Philippines, analysts said.

Traders interviewed on Friday said yields of the government’s Treasury bills and bonds are expected to move higher in 2018 as the Fed signaled its intention to increase its benchmark rate thrice this year.

“We see the Fed hiking three times [this year] so yields across all tenors might move higher,” a trader said over the phone on Friday.

Last month, the Fed maintained its forecast of three additional increases of interest rates for 2018, Reuters reported. This indicates that the effects of the US tax reform will have a “modest, and possibly fleeting” effect.

“We’re looking at higher yields this year due to the inflationary effects of the tax reform, both in the Philippines and the US,” another trader said over the phone.

Meanwhile, the December issue of Market Call Capital Markets Research prepared by First Metro Investments Corp. (FMIC) and University of Asia and the Pacific (UA&P) said bond investors may have to wait for the actual jump in inflation in the coming months as the first tranche of the local tax reform was passed in December.

“[A] sharp jump in inflation is expected starting January 2018 as the administration’s tax reform bill pushes up inflation, with higher fuel taxes, sin taxes, and a new tax on the sugar content of beverages, as well as fewer VAT (value-added tax) exemptions,” the joint report said.

The report added: “With bond yields expected to rise along with the inflation rate jump by an additional 0.5%, at the minimum, bond investors would have little chance of trading gains except for well-timed entry after the market overshoots on the upside.”

However, the first trader said that some “geopolitical concerns” might provide some resistance to rising yields.

Another trader added that demand will be renewed following the rejections the Treasury recently made in the last auctions.

“Demand will still be there given the liquidity in the banking system as a whole,” he added.

The government plans to issue government securities amounting to P240 billion in the first quarter of 2018.

In a memorandum, the Treasury said it will issue P120 billion worth of Treasury bills, and another P120 billion worth of Treasury bonds in the January to March period. The offers will come on a weekly basis.

The P240 billion the government intends to offer is higher than the P200 billion which was set in the last quarter of 2017. — Karl Angelo N. Vidal

Top 1000 corporations in the Philippines: Comparison of sectoral performance in 2016

January 3, 2018 | 12:01 am

THE NARRATIVE on the Philippines’ robust economic growth remains intact, judging from the strong earnings performance of the country’s top 1,000 firms. Read the full story.

Bourse to see muted trading as market corrects

January 3, 2018 | 12:01 am

By Krista A. M. Montealegre,
National Correspondent

AFTER STAGING a huge rally to close 2017, Philippine stocks may see subdued trading in the first week of the new year even as investors remain bullish about the market’s prospects.

“There could be a technical correction within the week considering the market hit uncharted territory last Friday,” PNB Securities President Manuel Antonio G. Lisbona said in a mobile phone message.

“From what I can observe, market sentiment is still bullish.”

The local stock market finished 2017 on a strong note, rallying 1.5% last week to end the year at an all-time high of 8,558.42.

The bellwether Philippine Stock Exchange index delivered an annual gain of 25.11%, reversing a two-year losing streak, on the back of investor optimism with respect to the tax reform program that increased the take-home pay for most wage earners.

“Trading will be as light as the previous week, as investors are still returning from holidays,” Luis A. Limlingan, business development head at Regina Capital Development Corp., said in a separate message.

The local market is coming off a two-day break as per Malacañang’s order to suspend government work and offices on the day following New Year’s Day.

“Any lull, however, would be a good opportunity to position on bargains especially those that have formed a solid base, or have retraced from their recent highs,” 2TradeAsia.com said in a weekly report.

In the United States, Wall Street scored its best year since 2013, with the benchmark S&P 500 rising 19.5% this year and the blue-chip Dow Jones Industrial Average up 25.2%.

A tax overhaul is seen pushing up US stocks this year because of a huge drop in the corporate tax rate that is expected to shore up the economy and corporate profits.

Like the US, the Philippine market is expected to ride the strong momentum of the Tax Reform for Acceleration and Inclusion (TRAIN) Law, signed by President Rodrigo R. Duterte last month to finance the government’s P8-trillion infrastructure program.

The PSE hopes the strength of local equities can offset the higher stock transaction tax that takes effect this year as part of the tax reform program.

The TRAIN Law pushed the stock transaction tax to 0.60% from 0.50% — already the highest in the region — of the gross selling price to gross value in money of the shares of stock sold, bartered, exchanged, or otherwise disposed.

“At least there’s certainty on the friction cost that should not substantially decrease the volume,” PSE Chief Operating Officer Roel A. Refran said in a phone interview.

“People will buy regardless of the tax. It is a question of relative profits versus other markets,” Mr. Refran said.